Twelve Republican lawmakers sent a letter to the chair of the Senate Banking Committee on Thursday, thanking him for proposing a series of restrictive changes to a House-passed bill to provide marijuana businesses with greater access to financial services. Meanwhile, a coalition of more than 1,300 cannabis industry professionals sent a separate letter urging the chairman to advance the bill as written.
The first letter, led by Rep. Ted Budd (R-NC), thanked Sen. Mike Crapo (R-ID) for “introducing a public health perspective to the question of banking for marijuana enterprises, including recreational stores that are advertising products that are appealing to children.”
“We understand you have received significant pushback from these businesses for raising public health questions related to their business practices, and we urge you to stand strong,” it continues.
After the House approved the Secure and Fair Enforcement (SAFE) Banking Act in a largely bipartisan vote in September, there were open questions about how the GOP-controlled Senate would approach the legislation. Initially Crapo indicated that he was not interested in discussing the bill, but he took some by surprise when he later said he wanted to hold a vote on the legislation in his panel by the end of 2019.
The committee held a hearing on the issue in July but did not mark up the legislation. Then the chairman said in December that he wanted to see several significant revisions, including some that reform advocates and industry stakeholders view as untenable. Among Crapo’s proposed revisions are limiting banking access to cannabis businesses that sell products with a maximum of two percent THC—a policy that would disqualify virtually all existing marijuana firms.
All twelve lawmakers who signed the new letter voted against the SAFE Banking Act on the House floor. They reiterated that they remain opposed to the reform move and laid out three areas of particular concern where they say the legislation “liberalizes federal law surrounding marijuana and would result in increased promotion of marijuana use.”
They wrote that high concentrations of THC in cannabis are a public health concern and that even relatively low levels of the cannabinoid can cause “IQ loss, increased risk of serious mental illness, and addiction.” They also argue that THC vapes, including those obtained in regulated markets, have been linked to lung injuries. Finally, they expresses worry about marijuana-impaired driving.
“We thank you again for your examination and consideration of these important public health topics,” the letter to Crapo concludes. “We remain opposed to liberalizing drug laws (including around banking), and we see these as some of our areas of greatest concern. We must protect our youth by preventing investment into companies that would prey upon them.”
The separate industry led letter—which was signed by representatives of major businesses and organizations such as the National Cannabis Industry Association, Cannabis Trade Federation, Marijuana Policy Project, VS Strategies, 4Front Ventures, Acreage Holdings and hundreds of others—makes the case that Crapo should proceed to hold a markup of the legislation as passed by the House.
“This is not a partisan issue, or a regional issue. We are a bipartisan group, with operations spread across the United States,” the letter states. “Simply put, this is an issue of fairness and of safety.”
“Because of the absence of banking reform that keeps pace with the federal hemp reforms and state-level medical and adult-use reforms, many cannabis businesses struggle to obtain and maintain bank accounts. Yet, banking is a crucial element for this burgeoning industry to operate safely. Without banking services, U.S. businesses will continue to operate in a cash environment that endangers employees and the public. Every day that we wait is another day that our employees and the members of the public who patronize our businesses are at risk of robbery and assault because we operate in an all cash environment.”
“We are merely asking that you facilitate the availability of financial services to the hemp and state-legal cannabis industry in order to improve public safety, allow states and the federal government to easily track and collect tax revenue, and assist the state-legal industry to displace an illicit market that is currently operating free from any regulatory oversight,” the group wrote, adding that the industry “stands ready to work with your office on the myriad technical issues that you have suggested should be a priority, including making certain that these products are not available to children.”
Responding to the opposing letter from GOP lawmakers, Justin Strekal, political director of NORML, told Marijuana Moment that if “a single signer of this letter was genuinely concerned about any of the issues laid out, then they would call for legalization and regulation, not maintaining prohibition and an illegal marijuana marketplace.”
“Sadly, they are simply relying on tired, lazy reefer madness rhetoric.”
Joining Budd in signing the letter are: Reps. Hal Rogers (R-KY), Robert Aderholt (R-AL), Doug Lamborn (R-CO), Mark Meadows (R-NC), Paul Gosar (R-AZ), David Rouzer (R-NC), Ken Buck (R-CO), Andy Biggs (R-AZ), Debbie Lesko (R-AZ), Dan Bishop (R-NC) and Andy Harris (R-MD).
Kevin Sabet, president of the prohibitionist group Smart Approaches to Marijuana, said in a press release that his group is “thankful these members of Congress are choosing to stand in support of public health and safety by reassuring Senator Crapo that he is acting in the best interest of the country by slowing down the rush to extend the federally illegal marijuana industry access to banks.”
The letter explains that potency levels of today’s marijuana products, the ongoing marijuana vaping crisis, and marijuana impaired driving are key issues that must be addressed prior to further consideration of any such legislation granting banking access to Big Pot.
— SAM (@learnaboutsam) February 13, 2020
“With the host of unknown health harms that can result from today’s super potent pot products, the risk of expanding this industry are too great,” he said.
Budd, for his part, said in a statement about the letter that he believes “we need a full examination of these harms to ensure that Americans, especially our children, don’t fall into an unhealthy lifestyle.”
The new dueling letters come weeks after after the House sponsors of the SAFE Banking Act wrote to Crapo, urging him to advance the financial services-focused bill despite his reservations on broader marijuana issues.
Canada Will Let Terminally Ill Patients Use Psychedelic Mushrooms For End-Of-Life Care
Four cancer patients in end-of-life care will be become the first people in decades to legally possess and consume psilocybin mushrooms in Canada after a landmark decision Tuesday by the country’s minister of health.
The patients petitioned Health Minister Patty Hajdu back in April for exemptions from the country’s laws against psilocybin in order to use psychedelic mushrooms as part of psychotherapy treatment. On Tuesday afternoon, Hajdu officially granted the patients’ request, the nonprofit TheraPsil, which assisted with the application, announced.
The approvals mark the first publicly-known individuals to receive a legal exemption from the Canadian Drugs and Substances Act to access psychedelic therapy, Therapsil said, and the first medical patients to legally use psilocybin since the compound became illegal in Canada in 1974.
“This is the positive result that is possible when good people show genuine compassion. I’m so grateful that I can move forward with the next step of healing,” one of the patients, Thomas Hartle, said in a statement Tuesday.
NEWS: 4 Palliative Canadians experiencing end-of-life distress have been APPROVED to access psychedelic therapy through section 56 exemptions. This historic decision marks the first known individuals to legally use #psilocybin since it’s illegality in 1974.https://t.co/AUlzjvKGcm
— TheraPsil (@TheraPsil) August 4, 2020
The applicants, as well as various advocates for psychedelic therapy, had personally appealed to Hajdu via a concerted social media campaign during the months their applications were pending.
“Health Canada is committed to carefully and thoroughly reviewing each request for an exemption under the Controlled Drugs and Substances Act, on a case-by-case basis, taking into account all relevant considerations, including evidence of potential benefits and risks or harms to the health and safety of Canadians,” a government spokesperson told Marijuana Moment in an email. “These exemptions do not change the fact that the sale and possession of magic mushrooms remain illegal in Canada.”
In statements issued Tuesday, other patients thanked Hajdu and said they were optimistic that more patients will one day have safe, legal access to psilocybin for therapeutic use.
Minister @pattyhajdu please hear this message from Thomas Hartle: “I am one of the applicants that currently have a section 56 exemption that is in your hands…I just wanted to remind you that it has now been 100 days since some of the applications started coming to you.” pic.twitter.com/5h0d8hfuUl
— TheraPsil (@TheraPsil) July 31, 2020
“I want to thank the Health Minister and Health Canada for approving my request for psilocybin use. The acknowledgement of the pain and anxiety that I have been suffering with means a lot to me, and I am feeling quite emotional today as a result,” said Laurie Brooks, an applicant from British Columbia. “I hope this is just the beginning and that soon all Canadians will be able to access psilocybin, for therapeutic use, to help with the pain they are experiencing, without having to petition the government for months to gain permission.”
TheraPsil said on Tuesday that it expects more people to petition the government for exemptions following the first four patients’ approval. A separate request by the nonprofit to allow therapists to use psychedelics themselves in preparation for treating patients with psilocybin was not addressed in Tuesday’s announcement, the group said.
The government, in its statement to Marijuana Moment, said that the use of “magic mushrooms also comes with risks, including increased heart rate and blood pressure, flashbacks and bad trips that may lead to risk-taking behaviour, traumatic injuries and even death.”
All of the four patients who received the new exemptions have been diagnosed with untreatable cancer. Therapists who use psychedelics in their practices say that psilocybin-aided therapy sessions can help patients deal with issues such as depression and anxiety, allowing them to better accept death as a natural part of existence.
“At this point psilocybin is a reasonable medical choice for these individuals,” TheraPsil’s executive director, Spencer Hawkswell, told Marijuana Moment in an interview last month. “This is about the minister being compassionate and using her ministerial abilities to help give patients access to something that’s going to help them.”
The therapeutic potential of psychedelics has attracted attention in recent years from a growing number of academics, policy makers and even the U.S. government. In September of last year, Johns Hopkins University announced the launch of the nation’s first-ever psychedelic research center, a $17-million project to study whether psychedelics can treat conditions such as opioid use disorder, Alzheimer’s disease, depression, anxiety and post-traumatic stress disorder.
In June, the University of North Carolina (UNC) announced a $27 million project funded by the U.S. Department of Defense to research and develop an entirely new class of psychedelics-inspired drugs. The program, UNC said, “aims to create new medications to effectively and rapidly treat depression, anxiety, and substance abuse without major side effects.”
Meanwhile, activists in the United States have advocated for state- and local-level reforms to research, decriminalize and in some cases even legalize psychedelics.
In May 2019, Denver became the first U.S. city to enact such a reform, with voters approving a measure that effectively decriminalized psilocybin possession. Soon after, officials in Oakland, California, decriminalized possession of all plant- and fungi-based psychedelics. In January of this year, the City Council in Santa Cruz, California, voted to make the enforcement of laws against psychedelics among the city’s lowest enforcement priorities.
Reformers are pushing for similar changes in other jurisdictions. A proposal in Washington, D.C. would allow voters to decide this fall whether to decriminalize plant- and fungi-based psychedelic drugs, including psilocybin, ayahuasca and ibogaine. A decision on whether that initiative will make the ballot is expected later this week. In Oregon, voters in November will consider a measure that would decriminalize all drugs and expand access to treatment. A separate Oregon proposal would legalize psilocybin therapy—the same therapy sought by the Canadian cancer patients.
Lawmakers in Hawaii earlier this year approved a plan to study psilocybin mushrooms’ medical applications with the goal of eventually legalizing access.
This story was updated with comment from Health Canada.
Photo courtesy of Wikimedia/Mushroom Observer.
Arizona Governor Slams Marijuana Legalization Ballot Measure In Voter Pamphlet Argument
Ahead of what’s shaping up to be a contentious campaign season around marijuana in Arizona, Gov. Doug Ducey (R) and other opponents are claiming that legalization would unleash a host of public health hazards on the state.
In an official voter guide argument published on Monday against a proposed initiative that’s likely to be on the November ballot, the governor called legalizing cannabis “a bad idea based on false promises.”
“We know from states that have fully legalized marijuana that it has real consequences: more deaths on highways caused by high drivers, dramatic increases in teen drug use, and more newborns exposed to marijuana,” Ducey claimed in his comments.
It’s not yet certain whether the legalization proposal, from Smart and Safe Arizona, will make it to the ballot. County officials have until August 7 to validate hundreds of thousands of signatures submitted by activists last month. But on Monday afternoon, the Arizona secretary of state’s office published arguments submitted both for and against the measure, including a handful from elected officials.
The arguments, which will be printed and mailed to registered voters, give a taste of what’s to come during the mounting fight over legalization in the weeks leading up to Election Day.
As with politics in general in 2020, expect considerable disagreement over basic facts. For instance, Ducey’s argument that cannabis legalization has led to “dramatic increases in teen drug use” seems at odds with available evidence. Even according to legalization opponents, such as the federal government’s High Intensity Drug Trafficking Area (HIDTA) program, teen use rates have actually gone down since the end of prohibition for adults.
In a presentation last month to North Dakota lawmakers, who themselves are considering whether to legalize marijuana, the Colorado-based deputy coordinator of the federal National Marijuana Initiative acknowledged that data from government drug use surveys show that Colorado saw a general decline in the number of teens using marijuana after the state enacted legalization.
Another of Ducey’s claims, that Colorado has a particularly high rate of teen cannabis use compared to other states, is true. But his submission fails to mention that was also true during the years before legalization.
Ducey wasn’t the only official to argue that legalization would increase teen consumption in the new official ballot arguments pamphlet. State Sen. Sine Kerr (R) wrote that she was “deeply saddened by the prospect of how this initiative would harm children.”
“Kids would become easy prey for an industry hungry to create a new generation of users,” Kerr argued, noting that legal products would include vape pens and edible products such as gummies, cookies and candy, which she implied would appeal to children. (Gummy bears would be banned due to a provision forbidding animal-shaped products.)
“The industry will succeed in hooking too many of our kids and stealing their potential early,” she wrote.
Other common arguments against the proposal centered on the increased risk of impaired driving, fears of unbridled advertising by the commercial cannabis industry and economic impacts resulting from unmotivated employees or worker impairment.
“In Arizona, positive marijuana workplace tests have nearly tripled over the past eight years since legalization of medical marijuana,” wrote Yavapai County Attorney Sheila Polk, an outspoken cannabis opponent. “Workplaces with higher rates of drug use have employees that are less productive, suffer higher absenteeism, and have more accidents.”
Polk, whose office prosecutes cannabis cases, also downplayed the impact that legalization would have on the criminal justice system.
“As for their argument that legalizing recreational pot will empty our prisons? Not a single state has seen a reduction in prison population because of legalization,” she argued. “This is because, contrary to the myth, our prisons are not filled with people serving time for marijuana possession.”
Legalization supporters, however, point to Polk’s own office as a reason to reform marijuana laws. In recent years, Polk famously filed felony charges against a black medical cannabis patient for possessing a small amount of marijuana concentrate purchased legally from a dispensary. Critics accused Polk’s office of exhibiting racial bias in the case.
Advocates for the proposed legalization measure, meanwhile, said in ballot arguments that the initiative takes a relatively measured, sensible approach by taxing and regulating marijuana rather than handling it as a criminal matter.
“The war on drugs failed,” wrote Chad Campbell, chair of Smart and Safe Arizona, the organization behind the proposed ballot measure. “Marijuana is safest when it’s sold in a taxed, tested and regulated environment—not on a street corner.”
The campaign says legalization will also bring in at least $300 million in tax revenue that can be used to support things like education, public health, infrastructure and safety. Penalties for driving under the influence of marijuana would go up under the proposal, and millions of dollars in funding would be funneled toward drug treatment and mental health programs.
As for youth use, organizers argue, “we know a well-regulated, licensed, legal environment is the best way to keep marijuana out of the hands of children—period. We set the legal age at 21, limited potency, required childproofed packaging, required products to be unattractive to kids and forbade advertising to youth.”
The state’s voters narrowly defeated a legalization measure in 2016, but a poll released last month indicates the current initiative is on the path to being approved. The survey found that more than 6 in 10 Arizona voters saying they support legalizing marijuana.
Another supporter, former Gov. Fife Symington (R), who served from 1991 to 1997, wrote in his argument that voters “must constantly re-evaluate our policies in the face of new evidence.”
“Today the evidence is overwhelmingly clear: criminalizing law-abiding citizens who choose to responsibly consume marijuana is an outdated policy that wastes precious government resources and unnecessarily restricts individual liberty,” he said. “A far more logical approach would be to respect the rights of adults to choose to consume marijuana while taxing and regulating its production and sale.”
The proposal imposes significant penalties for selling marijuana products to minors, Symington wrote, allows law enforcement to target drivers who demonstrate impairment and allows employers to maintain a drug-free workplace.
“Finally, and perhaps more importantly,” he wrote, “it frees up law enforcement to deal with more serious issues that actually jeopardize public safety.”
Perhaps the most balanced ballot argument submitted over the measure came from Will Humble, executive director of the Arizona Public Health Association, who said the proposition “poses public health risks and benefits.” Humble‘s statement, which identifies what he said are both risks and benefits of legalization, is printed twice—once alongside ballot arguments against legalization, and again next to arguments in support of it.
One one hand, Humble argued, ending felony charges for cannabis possession would reduce mental, physical and economic impacts for individuals and families. “Incarceration and felony convictions for marijuana offenses have multigenerational social, economic, and health impacts that have been disproportionately thrust on communities of color,” Humble wrote, “because they are more likely to be arrested for and convicted of marijuana offenses.”
Humble noted the measure also includes provisions to regulate and test cannabis products, support evidence-based public health programs and prevent sales to minors—although he acknowledged those efforts won’t eliminate all risks, which he said include “impaired neurological development from use in adolescence, increased visits to emergency rooms from marijuana intoxication or accidental ingestion by children, adverse birth outcomes from maternal use, and injuries caused by impaired driving or workplace use.”
Humble argued that if voters choose to pass the measure, regulators should be prepared to take the new legal sector seriously.
“If the Act passes,” he wrote, “we urge the state to use its full regulatory authority to enforce purchasing age-limits, packaging and potency standards, regulate advertising and place of use restrictions, enact workplace use policy requirements, and solidify motor vehicle operation restrictions and penalties. Arizona officials should also partner with state universities to analyze and publish data on its public health impacts.”
Read the arguments for and against the Arizona legal marijuana measure below:
McConnell Slams Pelosi Over Claim Marijuana Is A ‘Proven’ Therapy Amid Coronavirus Debate
Senate Majority Leader Mitch McConnell (R-KY) took a shot at House Speaker Nancy Pelosi (D-CA) on Tuesday, criticizing recent comments she made defending marijuana provisions that were included in her chamber’s latest coronavirus relief legislation.
The majority leader, who has consistently railed against the inclusion of cannabis banking protections in the House COVID-19 bill, said on the Senate floor that Pelosi is “still agitating for strange, new special interest carve-outs for the marijuana industry and even claiming they are COVID-related.”
“She said that, with respect to this virus, marijuana is ‘a therapy that has proven successful.’ You can’t make this up,” he said.
“I hope she shares her breakthrough with Dr. Fauci,” McConnell wryly added, referring to National Institute of Allergy and Infectious Diseases Director Anthony Fauci, who has been helping to lead the White House Coronavirus Task Force.
McConnell is referring to remarks Pelosi made last week after she was asked about components of the House Democrats’ bill that Republicans have criticized as not germane, including specifically the marijuana language.
The speaker said she took issue with the suggestion that cannabis banking reform was not relevant amid the pandemic and said marijuana “is a therapy that has proven successful.” Prohibitionists have seized on that comment, interpreting it to mean that Pelosi believes cannabis can treat COVID-19.
Speaker Pelosi is still holding up this entire package over bizarre unrelated things like carveouts for the marijuana industry. She even claimed to the press that pot is a proven COVID-19 therapy!
I hope she’s shared this breakthrough with Dr. Fauci.
Can we get serious yet? https://t.co/CksSWrMKDN
— Leader McConnell (@senatemajldr) August 4, 2020
That said, it wasn’t clear from the brief comment whether that was the case or if Pelosi was broadly referring to the therapeutic benefits of marijuana.
The Food and Drug Administration has made clear that there’s currently no solid evidence that cannabinoids can treat COVID-19 and it’s warned companies that make that claim.
Marijuana Moment previously exclusively reported that Pelosi—who said in 2018 that doctors should prescribe medical cannabis and yoga more often instead of prescription opioids—supported attaching the banking language to the House’s coronavirus package prior to the legislation’s introduction.
Senate leadership unveiled their latest round of coronavirus relief legislation last week, and it does not include the cannabis provisions. And given McConnell’s particular focus on those components, it seems likely that any attempt to get the language inserted in a bicameral conference will be met with resistance on the Senate side.
House Minority Leader Kevin McCarthy (R-CA) also recently slammed Pelosi’s latest cannabis comments on Twitter, saying “let’s focus on the pandemic. Not pot.”
Meanwhile, the standalone Secure and Fair Enforcement (SAFE) Banking Act has continued to sit in the Senate Banking Committee without action in the months since the House initially approved it.
Last month, a bipartisan coalition of state treasurers sent a letter to congressional leaders, asking that they include marijuana banking protections in the next piece of coronavirus relief legislation.
In May, a bipartisan coalition of 34 state attorneys general similarly wrote to Congress to urge the passage of COVD-19 legislation containing cannabis banking provisions.
McConnell’s latest comments also come a week after the House approved an amendment to protect state, territory and tribal marijuana laws from federal interference.
Photo courtesy of Senate Majority Leader Mitch McConnell.