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Two New Congressional Reports Address Marijuana, Hemp And CBD

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A key congressional committee released two reports on Monday that discuss policies surrounding marijuana, hemp and cannabidiol (CBD).

The documents published by the House Appropriations Committee are attached to annual spending bills that fund certain parts of the federal government, and some of their sections outline concerns about marijuana-impaired driving and the marketing of cannabis-derived products. One of the reports also lays out directives on funds to be used for the implementation of hemp regulations for the 2020 fiscal year.

The first report, which corresponds with legislation on Agriculture, Rural Development, the Food and Drug Administration (FDA) and related agencies, includes two cannabis sections.

One passage details concerns about CBD products that are currently being “marketed in violation” of federal law. At the same time, though, the committee is directing FDA to follow through with pledges to identify “lawful federal regulatory pathways for CBD foods and dietary supplements if such pathways are consistent with protection of the public health,” given that hemp-derived CBD was legalized under the 2018 Farm Bill.

“Cannabidiol Regulatory Pathway—The Committee is concerned about the proliferation of foods and dietary supplements marketed in violation of the Federal Food, Drug & Cosmetic Act (FFDCA), including products containing cannabis and cannabis-derived ingredients. Non-FFDCA-compliant products pose potential health and safety risks to consumers through unsubstantiated and misleading claims such as treating a wide-range of life-threatening diseases and conditions; excessive cannabidiol (CBD) concentrations that can result in harmful drug-drug interactions, somnolence, and elevated transaminases or liver toxicity; and the presence of significant levels of intoxicating compounds such as tetrahydrocannabinols (THC). The 2018 farm bill expressly preserves FDA’s public health authority to take appropriate actions regarding cannabis, including hemp and its derivatives. The Committee recognizes the FDA is considering a public regulatory process to evaluate the appropriateness, and possible parameters, of a regulatory pathway that would permit CBD in certain foods and dietary supplements. The Committee expects the FDA to assert its commitment to identifying lawful federal regulatory pathways for CBD foods and dietary supplements if such pathways are consistent with protection of the public health. Such pathways may include necessary public health and safety parameters that will protect the public health, such as labeling requirements and limits on CBD or other cannibis-derived ingredients in products, based upon anticipated total exposure levels. The Committee also expects the FDA to preserve the integrity of its drug development and approval processes, which ensures that products marketed for drug uses have undergone a rigorous scientific validation process demonstrating quality, safety and efficacy. It is also imperative that any FDA regulation of foods and dietary supplements containing CBD or other cannibis-derived ingredients preserve incentives to invest in robust clinical study of cannabis, so its therapeutic value can be more fully understood.”

Industry stakeholders got the chance to weigh in on the rulemaking process during a public hearing the FDA held last week.

Elsewhere in the same report, the House panel said that it was providing the U.S. Department of Agriculture (USDA) with roughly $16.5 million to facilitate the implementation of regulations for hemp and hemp-derived products “as soon as possible.”

“Hemp Production Program—The Committee understands that USDA is working on implementing the Hemp Production Program as authorized by the 2018 Farm Bill and encourages the Department to use existing resources to issue regulations as soon as possible. The bill includes $16,496,000 for implementation costs in fiscal year 2020. The Department is directed to provide the Committee with frequent status updates on the progress of implementation.”

Agriculture Secretary Sonny Perdue has pledged to release those guidelines in time for the 2020 planting season.

In a separate report on an appropriations for the Departments of Transportation, Housing and Urban Development and related agencies, the committee said that drug-impaired driving “remains a growing concern due to the increase in States legalizing marijuana use and the persistence of the opioid crisis.”

The panel urged the National Highway Traffic Safety Administration (NHTSA) to develop “a reliable standard for all types of impaired driving” but acknowledged that “developing a standard measurement of marijuana impairment, similar to blood alcohol concentration, remains unlikely in the near term.” As such, it is directing the agency to prioritize research into the creation of a standardized field sobriety test for cannabis.

The report sets aside $250,000 for NHTSA to support impaired driving detection programs for law enforcement.

“Drug-impaired driving—As drugged driving remains a growing concern due to the increase in States legalizing marijuana use and the persistence of the opioid crisis, the Committee supports the recommendations of the National Transportation Safety Board that DOT work with the Department of Health and Human Services to develop an impairment standard for drugs. The Committee urges NHTSA to coordinate research efforts with the States and other partners aimed at developing a reliable standard for all types of impaired driving, including marijuana impairment. The Committee directs NHTSA to continue its research efforts aimed at identifying and documenting drug-impaired drivers.

The Committee recognizes that developing a standard measurement of marijuana impairment, similar to blood alcohol concentration, remains unlikely in the near term and that resources are well spent on increasing law enforcement officers’ ability to detect driver impairment for multiple substances. The Committee directs NHTSA to continue to robustly support police training programs, particularly Drug Recognition Expert (DRE) and Advanced Roadside Impaired Driving Enforcement (ARIDE) training, and to prioritize the study and development of a standardized field sobriety test (SFST) to detect marijuana impairment. These programs support law enforcement identification of people who may be impaired due to marijuana or other drugs. Of the amounts provided under the description Impaired and Drug Impaired Driving as part of NHTSA’s Highway Safety Programs, the Committee provides an additional $250,000 under this heading to support DRE and ARIDE.”

The current text of the related respective bills themselves do not include any cannabis-specific language, but amendments could be added during the full House Appropriations Committee markup that is scheduled for Tuesday, or when the bills come to the full House floor. Senate-side action on marijuana riders is also possible.

One piece of appropriations legislation that does include marijuana provisions was released on Sunday. The spending proposal from the House Appropriations Subcommittee on Financial Services and General Government stipulated that funds could not be spent to penalize banks for servicing cannabis businesses that are operating in compliance with state law.

That legislation also eliminates a longstanding rider that has prohibited Washington D.C. from spending its own tax dollars to legalize and regulate marijuana sales.

Three separate spending reports that reference cannabis policy were released last month. The House Appropriations Committee said it was interested in “lowering regulatory and other barriers to conducting” research into Schedule I drugs such as cannabis. It also called for studies into the potential use of CBD and kratom as alternatives to opioid-based painkillers.

On a similar note, the panel said in a manager’s amendment to a report tied to the appropriations bill covering the Justice Department that the Drug Enforcement Administration should “expeditiously process any pending applications for authorization to produce marijuana exclusively for use in medical research.”

The committee also included language in a report attached to legislation funding the Department of Veterans Affairs expressing concern about a policy that denies home loans to military veterans who work in the marijuana industry.

Lawmakers Work New Angles To Pass Marijuana Banking Legislation

Photo courtesy of Nicholas C. Morton.

Marijuana Moment is made possible with support from readers. If you rely on our cannabis advocacy journalism to stay informed, please consider a monthly Patreon pledge.

Kyle Jaeger is Marijuana Moment's Los Angeles-based associate editor. His work has also appeared in High Times, VICE and attn.

Politics

California Governor Says Marijuana Legalization Is A ‘Civil Rights’ Matter Amid Mass Protests Over Racial Injustice

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The governor of California discussed systemic racism and injustice that is inspiring mass protests across the country in a Friday speech, and he touted the state’s legalization of marijuana as an example of how it has addressed racial disparities in the criminal justice system.

Gov. Gavin Newsom (D) said at a press conference that he’s “very proud of this state” for going beyond issues such as implicit bias in policing and the “deadly use of force.” California’s leadership helped advance “a conversation about broader criminal justice reform to address the issues of the war on drugs” and “race-based sentencing,” he said.

“That’s why the state was one of the early adopters of a new approach as it relates to cannabis reform. Legalization around adult-use of marijuana,” he said. “It was a civil rights call from our perspective.”

“I was proud to be out in front in those efforts,” he added. “It was about addressing the disparities. It was about addressing incarceration. It was about addressing the ills of this war on drugs.”

Newsom also discussed the racially discriminatory sentencing of crack versus powder cocaine and other mandatory minimum sentencing policies. While the federal disparity was reduced over time since Congress passed the sentencing provision—a policy presumptive Democratic presidential nominee Joe Biden helped enacted during his time in the Senate and later sought to undo—California eliminated the distinction in terms of state sentencing in 2014.

Even so, the governor recognized that the reforms the state has enacted to date are “not enough” and more work needs to be done. He’s also not alone in drawing a connection between drug policy reform and racial justice.

Earlier this week, the governor of Virginia said that the passage of marijuana decriminalization legislation this year represents an example of how his state has addressed racial inequities that are inspiring mass protests over recent police killings of black Americans such as George Floyd and Breonna Taylor.

Sen. Cory Booker (D-NJ) also recently said racial disparities in marijuana criminalization is an example of a systemic injustice that underlies the frustration of minority communities.

Last week, 12 House members introduced a resolution condemning police brutality and specifically noting the racial injustices of the war on drugs. It now has 160 cosponsors.

The measure came one week after 44 members of the House sent a letter to the Justice Department, calling for an independent investigation into a fatal police shooting of Taylor in a botched drug raid.

In New York, there’s a renewed push to pass a package of criminal justice reform legislation that includes a bill to legalize marijuana. Sen. Julia Salazar (D) told Marijuana Moment that “in this particular moment, I think what’s the important factor here is that [criminalization] disproportionately impacts black and brown New Yorkers.”

“Because of the criminalization of the use of marijuana, more black and brown New Yorkers have interactions with police than they need to,” she said. “More people end up in the criminal justice system in the first place than is necessary at all.”

New Jersey Lawmakers File Marijuana Decriminalization Bill Ahead Of Broader Legalization Referendum

Image element courtesy of Gage Skidmore.

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American Bar Association Says Firms Working ‘Indirectly’ With Marijuana Industry Should Get COVID Relief

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The American Bar Association (ABA) sent a letter to the heads of the Treasury Department and Small Business Administration (SBA) on Friday, urging them to end a current policy preventing law firms that service state-legal marijuana businesses from receiving federal coronavirus relief.

SBA has made clear that cannabis companies are ineligible for its Paycheck Protection Program (PPP) loans—but its policy also bars those that work with marijuana businesses indirectly from getting the aid. ABA, which has nearly 200,000 dues-paying members, said it wants clarification or a formal policy change to make it so indirect businesses are not impacted.

“The ABA supports amending federal law to ensure that lawyers do not face the threat of criminal charges when they represent clients in states that have legalized marijuana,” the organization said. “Even before those changes are made to federal law, lawyers should also not be penalized for providing legal services to cannabis-related businesses that comply with state laws.”

ABA also argued that the policy is excessively broad in that it stipulates that companies that derive any revenue from servicing a cannabis business cannot receive relief during the pandemic. “Thus, a law firm where a single lawyer provided advice to a single marijuana business client on legal issues for a nominal fee would arguably be ineligible under this language for the SBA PPP loan program,” the organization wrote.

ABA’s letter further notes that 78 percent of firms are located in states where marijuana is legal in some form.

“We urge SBA to provide further guidance that it will not treat otherwise eligible businesses, including law firms, as disqualified from the PPP program based solely on having provided legal, financial/accounting, policy, or regulatory advice to a Direct Marijuana Business,” Judy Perry Martinez, ABA’s president, wrote.

Steve Fox, strategic advisor at the Cannabis Trade Federation, told Marijuana Moment that it’s “wonderful to see an organization with the reputation and stature of the ABA engage on this issue.”

“As they note, the SBA guidance is overly broad and unjustly punishes companies and firms all across the country. In fact, in some states, the cannabis industry is so ingrained in the economy, you have many hundreds of companies providing goods or services to cannabis businesses,” he said. “According to the plain language of the SBA guidance, they are all, with very minor exceptions, ineligible for PPP loans.”

“We stand with the ABA in urging the Treasury and Small Business Administration to issue further guidance, clarifying that ‘indirect marijuana businesses’ are eligible for PPP loans. If they fail to do so, Congress should remedy this situation at the earliest possible opportunity,” he added.

In February, ABA’s House of Delegates voted in favor of proposals endorsing pending federal legislation to protect banks that service cannabis businesses and calling for a clarification of rules to ensure that lawyers will not be penalized for representing clients in cases concerning state-legal marijuana activity.

Rep. Earl Blumenauer (D-OR) introduced a bill last month that would fix the COVID-19 relief access problem, calling for SBA eligibility for cannabis businesses and ancillary companies. That came after he led a letter with 34 bipartisan members of the House urging leadership to include the policy change in future coronavirus-related bills.

Sens. Jacky Rosen (D-NV) and Ron Wyden (D-OR) made a similar request to Senate leaders in a separate letter.

Separately, the ABA-supported Secure and Fair Enforcement (SAFE) Banking Act was included in a House-passed COVID-19 relief package last month.

A bipartisan coalition of 34 state and territory attorneys general asked Congress to pass the bill with that language, which would protect banks that service marijuana businesses from being penalized by federal regulators.

The head of the Federal Deposit Insurance Corporation said this week that marijuana business banking represents one of the most “challenging issues that I have encountered” at the agency.

Read ABA’s letter to the Treasury and SBA below: 

ABA letter to SBA on PPP by Marijuana Moment on Scribd

Federal Financial Regulatory Agency Head Says Marijuana Banking Among Most Challenging Issues

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Bermuda Government Releases Marijuana Legalization Bill For Public Feedback

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The government of Bermuda released a draft bill on Wednesday to establish a legal marijuana market in the self-governing British overseas territory.

“Surprising for some, public attitudes have evolved apace with global legislative reforms and in recognition that opening up pathways for new economic opportunities and activity is needed,” Attorney General Kathy Simmons said in a video on the proposal.

Under the proposed legislation, adults 21 and older would be able to possess and purchase up to seven grams of cannabis from licensed retailers.

A regulatory body called the Cannabis Advisory Authority would be responsible for issuing licenses and regulating the market. There would be seven types of licenses available: cultivation, retail, research, import, export, transportation and manufacturing.

Individuals with prior marijuana convictions would not be barred from participating in the industry.

Fees for the licenses would be set in a way designed to both stimulate the territory’s economy while also ensuring that they are not prohibitively expensive for “underserved and marginalized communities,” a summary of the bill states.

People with convictions for possessing seven grams or less would be eligible for expungement.

Last year, Bermudan lawmakers unveiled draft legislation to create a medical cannabis program. Public feedback signaled that people felt the bill imposed excessive regulations and that the territory should more broadly legalize marijuana altogether for adult use.

Now that this new draft legislation has been released, the government is again asking for public input up until July 3. On its site, individuals are prompted with seven specific questions that feedback is being sought on. That includes queries about licensing requirements and penalties.

Premier David Burt, who pledged last year to introduce marijuana legalization legislation, also encouraged individuals to weigh in on the proposed regulations.

“The Government has made a commitment to progressively liberalize cannabis laws in Bermuda and to create economic opportunities for citizens wishing to participate in a regulated cannabis scheme,” the site states. “The Government again wishes to ‘take it to the people’ by commencing a one month public consultation exercise on the proposed scheme.”

The attorney general said in her video that the government plans to “move ahead with a more simplified, regulated cannabis scheme, which builds on the strength of the original medicinal cannabis policy and which embraces the public feedback.”

“The revised proposal with provide for a regulated cannabis program which has been hybridized to meet Bermuda’s requirements while modeling the best available legal provisions in Canada, both provincial and federal, and to a lesser degree, examples from the Caribbean,” she said.

Several Caribbean nations have started exploring marijuana reform in recent years. Importantly, in 2018, the heads of 19 Caribbean nations agreed to “review marijuana’s current status with a view to reclassification,” emphasizing “human and religious rights” issues stemming from criminalization as well as “the economic benefits to be derived” from legalization.

Since then, lawmakers in the dual-island nation of St. Kitts and Nevis said they would be introducing legalization legislation. The government of Trinidad and Tobago brought two cannabis reform bills before Parliament last year—one to decriminalize low-level possession and another to legalize cannabis for medical and religious purposes.

Meanwhile, the governor of the U.S. Virgin Islands has been stressing the need to legalize marijuana in order to generate tax revenue for the U.S. territory’s fiscal recovery from the coronavirus pandemic.

The Jamaican government also recently announced that it will be allowing medical cannabis patients to make marijuana purchases online for pickup at “herb houses” as a means to combat the coronavirus pandemic.

Read the draft bill to legalize marijuana in Bermuda below:

Bermuda marijuana legalizat… by Marijuana Moment on Scribd

U.S. Virgin Islands Governor Touts Legal Marijuana’s Economic Potential At Revenue Meeting

Marijuana Moment is made possible with support from readers. If you rely on our cannabis advocacy journalism to stay informed, please consider a monthly Patreon pledge.
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