The U.S. House’s top Republican on criminal justice issues is calling on the new Democratic majority to pass legislation to let states legalize marijuana without federal interference.
“The legal status of cannabis in the United States is in disarray. It is incumbent on Congress to clarify these issues and reform our federal laws,” Rep. Doug Collins (R-GA), the ranking minority member on the House Judiciary Committee, wrote in a letter to the panel’s chairman, Rep. Jerrold Nadler (D-NY), on Wednesday.
“More than 30 states and the District of Columbia have legalized the medicinal and/or recreational use of cannabis. Other states have opted to decriminalize cannabis possession, or to legalize the consumption of certain cannabis-derived extracts. Some states still prohibit cannabis use of any kind,” Collins wrote, along with Rep. Matt Gaetz (R-FL), who co-signed the letter. “Given that the substance is still a Schedule I drug under federal law, this conflicting patchwork of state and federal laws has created a unique set of legal challenges.”
The Republican lawmakers are endorsing the Strengthening the Tenth Amendment Through Entrusting States (STATES) Act, a bill to shield state cannabis laws from federal intervention.
“We believe this Committee and this Congress must act to clarify the rights and responsibilities, relative to cannabis, of individuals, physicians, businesses, medical patients, and law enforcement officials,” they wrote. “We support the STATES Act, which was recently re-introduced in the 116th Congress, and we urge you to promptly hold a legislative hearing on legislative solutions that will resolve the confusion surrounding the legality of cannabis in the United States.”
The STATES Act was introduced in both the House and Senate on Thursday. If enacted, it would block the federal government from punishing people for actions that are in compliance with state laws “relating to the manufacture, production, possession, distribution, dispensation, administration or delivery” of marijuana.
President Trump voiced support for a previous version of the cannabis bill filed last year by Sens. Elizabeth Warren (D-MA) and Cory Gardner (R-CO), which garnered nine other Senate cosponsors by the end of 2018. A companion House version had 45 members signed on.
Advocates are increasingly hopeful that the new legislation, or similar far-reaching marijuana reforms, are achievable this year.
Already, the House Financial Services Committee moved last month to approve a bill to increase marijuana businesses’ access to banks with a bipartisan vote of 45 to 15.
And Rep. Jim McGovern (D-MA), the chairman of the powerful Rules Committee predicted in an interview last week that the House will pass legislation like the STATES Act “within the next several weeks.”
The road to passage of the bill on the floor begins in the Judiciary Committee, hence the GOP lawmakers’ letter to Nadler.
Support from a top Republican like Collins adds to pressure on Democrats to prioritize moving marijuana reforms, which are supported by a growing majority of voters, according to polls. Meanwhile, all of the Democratic party’s major presidential candidates have endorsed legalization.
The support for the STATES Act marks a shift for Collins, who was the lead sponsor of criminal justice reform legislation signed into law by President Trump late last year but has opposed most marijuana reforms that have come before the House since he joined Congress in 2013.
In 2015, for example, he voted against a floor amendment to prevent the Department of Justice from interfering with state marijuana laws as well as narrower proposals covering only medical cannabis programs that year and in 2014.
And whereas the STATES Act would ease the issue of marijuana businesses’ access to banks, Collins also opposed a 2014 amendment to shield financial services providers from being punished for working with the cannabis industry.
Between 2014 and 2016, he voted three times to oppose amendments that would allow military veterans to receive medical cannabis recommendations from their Department of Veterans Affairs doctors. And while Collins opposed two hemp amendments in 2014, he did back two similar measures in 2015. He also supported a 2015 amendment to shield people from being punished by the Justice Department for activity in compliance with state laws allowing limited access to CBD medical cannabis preparations.
The endorsement of far-reaching cannabis legislation by Collins, who has never before proactively signed his name onto a marijuana reform bill as a cosponsor, marks perhaps one of the biggest and most important conversions on Capitol Hill yet for legalization supporters.
A staffer for Collins said in January that he would be “unlikely to support” a move by Rep. Hakeem Jeffries (D-NY), who worked with the Georgia Republican on the successful criminal justice reform legislation called the First Step Act, to include language descheduling marijuana in a followup sentencing reform bill tentatively called the Next Step Act.
While the legislation Collins is endorsing wouldn’t technically remove marijuana from the schedules of the Controlled Substances Act, it would specifically exempt anyone following a state cannabis law from being punished under the law.
“The STATES Act is a bipartisan solution to the biggest issue facing the cannabis industry today, which is the conflict between federal and state law and all of the negative repercussions that come with it,” Neal Levine, CEO of the Cannabis Trade Federation, said. “Rep. Collins is highly respected on both sides of the aisle, a true constitutional conservative and comes from a state with no industry.”
“If he can get behind the STATES Act, that only reinforces what we’ve been saying: this is the only piece of legislation that ends the untenable conflict between federal and state law that has a chance to pass into law during this Congress,” Levine said.
For his part, Nadler, the Judiciary Committee chairman, said earlier this year that his committee might be taking up the issue of marijuana “fairly soon.” Although he did not cosponsor last Congress’s version of the STATES Act, he has signed onto other legislation to end federal marijuana prohibition in years past.
He also suggested in an interview last year that he might support legalizing drugs beyond marijuana. “Certainly the softer drugs like marijuana, there’s no good reason at all that they cannot be legalized and regulated properly,” he said, distinctly using the plural term “drugs.”
Gaetz, who coauthored the new letter with Collins, is one of a handful of congressional Republicans who have played an especially active role in pushing his party to evolve on cannabis issues. A bill he sponsored to increase research on medical cannabis was approved by the Judiciary Committee last year when the House was under GOP control.
Marijuana Banking Bill Will Get A Full House Floor Vote This Month
A bipartisan bill to protect banks that service marijuana businesses will get a House floor vote by the end of the month, the office of Majority Leader Steny Hoyer (D-MD) confirmed to Marijuana Moment on Friday.
House leadership announced the decision to Democratic lawmakers at a closed-door meeting on Thursday.
“Mr. Hoyer said at the Whip meeting yesterday that he intends to move it this month,” a Hoyer staffer said in an email. “We’re discussing it with Members, but it hasn’t been scheduled just yet.”
Prior to confirmation from Hoyer’s office, four sources initially described the development to Marijuana Moment, with some saying the vote would be made under suspension of the rules—a procedure that is generally reserved for non-controversial legislation.
Voting on suspension would require two-thirds of the chamber (290 members) to vote in favor of the Secure and Fair Enforcement (SAFE) Banking Act in order for it to pass. The bill, which cleared the House Financial Services Committee in March, currently has 206 cosponsors, including 26 Republicans.
No amendments would be allowed to be added on the floor under the suspension process.
Problems could arise if lawmakers aren’t able to rally additional votes from conservative members or if there’s pushback over the strategy from progressive lawmakers, though it is unlikely Democratic leadership would advance the bill if they didn’t believe they have the votes for passage.
While interest in resolving the banking issue is generally bipartisan, it’s within reason to assume that lawmakers on both sides of the aisle might have wanted the opportunity to offer provisions such as extending protections to hemp businesses or adding language promoting social equity policies. That said, it is possible that leadership could file an entirely new piece of legislation that is similar to the SAFE Banking Act but contains modified provisions negotiated with key members and use that as the vehicle for floor action.
Many expected cannabis banking legislation to receive a floor vote before the August recess, but that did not come to fruition.
In any case, the development comes as the Senate Banking Committee is also preparing to hold a vote on marijuana banking legislation, with Chairman Mike Crapo (R-ID) announcing on Thursday that his panel is “working to try to get a bill ready.” He didn’t offer a timeline, however, other than saying he hoped to advance the legislation by the end of the year.
While sources told Marijuana Moment that Hoyer made his decision to allow cannabis banking vote following an earlier Wednesday meeting on the issue, it is likely that building momentum in the GOP-controlled Senate added to pressure on the House to act so that Democrats wouldn’t be seen as lagging behind Republicans on cannabis reform, an issue the party has sought to take political ownership of.
Following Crapo’s statement on advancing the banking legislation, Rep. Ed Perlmutter (D-CO), chief sponsor of the SAFE Banking Act, told Marijuana Moment that he welcomes the senator’s “commitment to resolve the banking conflicts that have been created by the misalignment in state and federal law on the issue of cannabis.”
“I remain focused on passing the SAFE Banking Act out of the House and look forward to working with my colleagues in the Senate as they take up the SAFE Banking Act or work to develop and pass similar legislation,” he said.
Banking access is largely seen as one of the most achievable pieces of cannabis legislation that stands to pass this Congress. Advocates and reform-minded lawmakers view it as one of the first steps on the path toward ending federal marijuana prohibition.
“We are seeing the blueprint in action and moving forward on critical legislation to protect state legal cannabis banking,” Rep. Earl Blumenauer (D-OR) told Marijuana Moment, referring to a memo he sent to House leadership last year outlining a committee-by-committee process for passing incremental cannabis bills leading up to major legislation to end federal prohibition. “Earlier this summer, the House passed protections for state and tribal cannabis laws. In the most cannabis friendly Congress in history, we need to keep up this momentum. There is still much to be done.”
There has been some disagreement within advocacy circles about whether it’s prudent to pass legislation viewed as primarily favorable to the industry before advancing comprehensive legislation that deschedules cannabis and takes steps to repair the harms of prohibition enforcement.
“It is our hope that after the successful passage of the SAFE Banking Act in the House, we will be able to advance legislation that ends the federal criminalization of cannabis once and for all,” Justin Strekal, political director of NORML, told Marijuana Moment. “Now is our time to demonstrate that marijuana law reform is both good policy and good politics.”
“We will not stop until otherwise law-abiding Americans are no longer discriminated against or criminalized due to the past or future choice to consume cannabis,” he said.
Neal Levine, CEO of the Cannabis Trade Federation, told Marijuana Moment that the group is “delighted that the U.S. House of Representatives is on the brink of passing a landmark piece of cannabis policy legislation that modernizes our antiquated banking laws to reflect the will of the people.”
“This is welcomed and long overdue news for the over 200,000 employees that work in the industry, cannabis businesses, and for public safety in the communities in which we operate,” he said. “Once the SAFE Banking Act passes the U.S. House, we call on the U.S. Senate to move quickly to protect our businesses and our workers.”
Pressure has been building all year from stakeholders and policymakers alike to get the legislation passed. Endorsements aren’t just coming from reform groups, either; 50 state banking associations, the National Association of State Treasurers, the top financial regulators of 25 states, a majority of state attorneys general and bipartisan governors of 20 states have also voiced support for the SAFE Banking Act.
Earlier this month, the head of the American Bankers Association predicted that the bill would be passed in the House “as early as September.”
This story was updated to add comment from Perlmutter and Hoyer’s office.
New ‘Marijuana 1-to-3 Act’ Would Reclassify Cannabis Under Federal Law
Another bill to reschedule marijuana was filed in Congress on Thursday.
Rep. Greg Steube (R-FL) introduced the legislation, which is titled the “Marijuana 1-to-3 Act.” True to its name, the bill would simply require the attorney general to move cannabis from Schedule I to Schedule III under the Controlled Substances Act, with the aim of increasing research on the drug’s effects.
“As marijuana is legalized for medical and recreational use across the United States, it is important that we study the effects of the substance and the potential impacts it can have on various populations,” Steube said in a press release. “By rescheduling marijuana from a schedule I controlled substance to a schedule III controlled substance, the opportunities for research and study are drastically expanded.
Today, I introduced a bill to reschedule marijuana from a schedule I to a schedule III controlled substance. The Marijuana 1-to-3 Act will allow additional research to be done on the benefits of marijuana by removing bureaucratic red tape. https://t.co/w45WAKHBr9
— Congressman Greg Steube (@RepGregSteube) September 12, 2019
“With this rescheduling, researchers can now access federal funds to research this substance and determine its medical value,” he said.
The press release came hours after a bipartisan pair of lawmakers introduced separate legislation to reschedule marijuana, also to Schedule III.
That bill contained additional provisions that would require federal agencies to develop research agendas for marijuana within one year of its enactment and also establish a system whereby universities could be designated as “Centers of Excellence in Cannabis Research” if they conducted comprehensive studies on issues related to marijuana.
Rep. Matt Gaetz (R-FL), who is a sponsor of the broader research bill, is also cosponsoring Steube’s more focused rescheduling proposal.
It’s not clear why Steube chose to file his own reclassification bill or whether the other legislation’s additional provisions were a factor.
The congressman’s two-page bill states that “the Attorney General of the United States shall, by order not later than 60 days after the date of enactment of this section, transfer marijuana…from schedule I of such Act to schedule III of such Act.”
“We hear every day about the positive health benefits of marijuana,” Steube said. “Whether it’s young children with seizure disorders, or veterans suffering from chronic pain, it is clear that there are medical benefits to marijuana and I think it’s time we remove the bureaucratic red tape that prevents us from thoroughly studying this substance.”
While he emphasized that the intent of his legislation is to encourage research into marijuana, placing cannabis in Schedule III would also have implications for marijuana businesses, who are currently ineligible for federal tax deductions under an Internal Revenue Code section that applies to anyone “trafficking in controlled substances” in Schedule I or II.
Read the full text of the bill below:
Photo by Ndispensable.
GOP Senate Chair Says He Plans Marijuana Banking Vote
The Republican chair of the Senate Banking Committee said on Thursday that his panel will hold a vote on legislation allowing banks to service state-legal marijuana businesses this year.
Chairman Mike Crapo (R-ID) told Politico that while he doesn’t support ending federal cannabis prohibition, his committee will take up the industry’s banking issues, which was the subject of a hearing the panel held in July. Because marijuana remains federally illegal, many financial institutions remain wary of taking on cannabis business clients—forcing them to operate on a cash-only basis—and there’s a growing bipartisan call to resolve the problem.
Crapo doesn’t support cannabis legalization. But he says he’s been compelled to act bc cannabis businesses w/o bank access are forced to transact in cash and there are issues surrounding transactions with businesses like plumbers, hardware stores, etc that serve the industry
— Zachary Warmbrodt (@Zachary) September 12, 2019
“We’re working to try to get a bill ready,” the senator said. “I’m looking to see whether we can thread the needle.”
Legislation to provide financial services to marijuana businesses—the Secure and Fair Enforcement (SAFE) Banking Act—already exists and was approved by the House Financial Services Committee in March. That bill has 206 cosponsors, including 26 Republicans. The companion Senate bill has nearly a third of the chamber signed on.
It’s not clear what changes Crapo is hoping for, but there’s been talk of adding hemp-specific banking protections, or including language to prevent activities such as Operation Choke Point, an Obama-era policy that conservatives view as biased against certain industries such as gun manufacturers, in order to bolster the proposal’s GOP appeal.
This development comes as Congress returns from a summer recess. Cannabis reform advocates hoped that the Democratic-controlled House would put the SAFE Act to a vote before August, but that window passed.
There have been renewed rumors that House leadership is planning to schedule a vote on the SAFE Act soon, but some dispute has broken out among cannabis reform supporters about the notion of passing a bill seen as industry-focused prior to moving broader legislation to deschedule marijuana and repair the harms of past prohibition enforcement.
Many supporters of more far-reaching moves have zeroed in on a bill House Judiciary Committee Chairman Jerrold Nadler (D-NY) filed, but it’s unclear when that legislation would be able to see a markup by the panel, which for now is focused on issues such as gun reform and the prospect of impeachment proceedings.
If the Republican-controlled Senate were to pass marijuana banking legislation soon, it could increase political pressure on House majority Democrats to follow suit lest they be seen as lagging on an issue on which their party has increasingly sought to lead.
Don Murphy, federal policies director for the Marijuana Policy Project, told Marijuana Moment that polling in Crapo’s home state of Idaho—one of only three states that currently have no legal cannabis laws on the books—shows that voters in the state support cannabis reform and that “it appears Chairman Crapo is seeing similar results.”
“Apparently MPP hasn’t done the only marijuana poll in Idaho recently,” he said. “Idaho voters support marijuana policy reform and with his support of the SAFE Act the Senator is moving in their direction. What took years to develop could end up in a photo finish as each chamber attempts to beat the other to a floor vote. If true, this is a very good news.”
Idaho activists are working to place a medical cannabis measure on the state’s 2020 ballot.
While it’s not clear Crapo that endorses the SAFE Act as written or that he would use an amended version of the existing bill as the vehicle to advance the issue, he’s made several statements indicating that he’s interested in a legislative fix on cannabis banking.
“We may craft our own bill or we may work with them to craft any amended legislation,” he told Politico.
“It would be terrific for the Senate Banking Committee to hold a markup on The Safe Banking Act, which we believe would result in a favorable bipartisan vote,” NORML Political Director Justin Strekal told Marijuana Moment. “Now more than ever, members of Congress spanning all types of geographic and political diversity recognize the need to amend existing law and move us towards ending federal prohibition.”
Crapo told Politico that he’s particularly interested in passing cannabis banking reform legislation because of the negative impact of the ban on ancillary businesses like plumbing and hardware companies that work with such businesses but don’t deal directly with marijuana.
The head of the American Bankers Association (ABA) predicted last week that the House would vote on the legislation before October.
THIS is a very important development- thank you @MikeCrapo for helping advance this legislation that will allow people and businesses access to the banking sector in states that have legalized cannabis and address the state/federal law inconsistency https://t.co/GzHo5cXuxA
— Rob Nichols (@BankersPrez) September 12, 2019
“THIS is a very important development- thank you [Sen. Crapo] for helping advance this legislation that will allow people and businesses access to the banking sector in states that have legalized cannabis and address the state/federal law inconsistency,” he wrote in response to the senator’s latest comments.
Politically, passing the banking bill in the Senate could give Sen. Cory Gardner (R-CO), its chief GOP cosponsor, a much-needed win heading toward next year’s election. Democratic candidates, including former Colorado Gov. John Hickenlooper (D) are targeting the seat, and Gardner has made much of his work to support the state’s legal cannabis market.