Attorney General William Barr said on Wednesday that he would prefer that Congress enact legislation allowing states to legalize marijuana instead of continuing the current approach under which a growing number of states have ended cannabis prohibition in conflict with federal law.
The attorney general added that the Justice Department is actively reviewing legislation that would accomplish that, and he discussed the department’s current approach to marijuana enforcement as well as plans to add additional cannabis manufacturers for research purposes.
During a Senate appropriations hearing, Sen. Lisa Murkowski (R-AK) asked Barr about the Strengthening the Tenth Amendment Through Entrusting States (STATES) Act, a bipartisan bill introduced last week that would protect legal marijuana states from federal intervention.
Barr reiterated previous comments indicating that his overall preference would be for marijuana to be prohibited across the country, but acknowledged that the approach is increasingly politically untenable.
“The situation that I think is intolerable and which I’m opposed to is the current situation we’re in, and I would prefer one of two approaches rather than where we are,” Barr said. “Personally, I would still favor one uniform federal rule against marijuana but, if there is not sufficient consensus to obtain that, then I think the way to go is to permit a more federal approach so states can make their own decisions within the framework of the federal law and so we’re not just ignoring the enforcement of federal law.”
Barr said that he hasn’t specifically looked at the STATES Act yet, but that the bill is currently being circulated internally through the Justice Department “for comment.”
“Once we get those comments, we’ll be able to work with you on any concerns about the STATES law, but I would much rather that approach—the approach taken by the STATES Act—than where we currently are,” he said.
Watch Barr’s marijuana comments, at about 1:12:10 and 1:55:30 into the video below:
The comments are the latest sign that Barr does not plan to dedicate Justice Department resources to enforcing federal cannabis laws to crack down on the legal industry. While he was being confirmed by the Senate, Barr repeatedly said he wouldn’t prosecute marijuana businesses operating in compliance with state law.
Later in the hearing, Sen. Brian Schatz (D-HI) asked Barr about the department’s current policy for marijuana enforcement since Obama-era guidance for federal prosecutors was rescinded by his predecessor, Jeff Sessions. The attorney general said he is going to have to “make some difficult choices” and said it was an “open question” as to whether the department will treat cannabis businesses that began operating after the guidance was removed the same way that it has for those in states that legalized while the Cole memorandum was in place.
“I would like to see Congress address this issue,” Barr said.
He also committed to expanding the number of federally authorized cannabis manufacturers within the next year, telling Schatz that it’s something he’s “been pushing very hard over the last few weeks.”
“I think we’re going to move forward on it,” he said. “I think it’s very important to get those additional suppliers.”
Legalization advocates reacted positively to the attorney general’s latest comments on the need for Congress to resolve conflicting state and federal marijuana laws.
“We agree wholeheartedly with [Attorney General] Barr—the conflict between federal and state cannabis law has become untenable and must end,” Neal Levine, CEO of Cannabis Trade Federation, told Marijuana Moment. “While today is yet another promising development, we have a long way to go. As an industry we must stay vigilant and continue to advocate for this sensible, bipartisan solution that our industry and the communities we operate in so desperately need.”
Michael Correia, government relations director for the National Cannabis Industry Association, agreed that it’s “a positive sign that Attorney General Barr has acknowledged that the current situation is untenable” and said the organization is “happy to hear that the STATES Act is being considered for comment by the Department of Justice.”
However, “we also recognize that there are multiple other pieces of legislation currently in Congress that would allow states to set their own policies and end federal cannabis prohibition,” Correia said.
Those pieces of legislation includes the Marijuana Justice Act, a bill sponsored by Sen. Cory Booker (D-NJ) that would not only federally deschedule marijuana but also involve a number of social equity provisions designed to repair the damages of the war on drugs, which has been waged in a racially disproportionate manner.
Booker said on Tuesday that he wouldn’t be signing on to cannabis legislation that didn’t include such provisions, and that’s why he is not a cosponsor of the STATES Act like he was for the version filed during the last Congress.
Michael Collins, director of national affairs for the Drug Policy Alliance, told Marijuana Moment that while it’s “positive that DOJ seems willing to engage on marijuana reform,” he’s “reluctant to value William Barr’s input on marijuana legislation, just as I never valued Jeff Sessions’s input on sentencing reform legislation.”
“Feedback is always welcome, but Congress writes the laws,” Collins said. “DOJ just enforces them.”
This story has been updated to include additional comments from Barr and advocates.
Photo courtesy of Senate Appropriations Committee.
California Governor Says Marijuana Legalization Is A ‘Civil Rights’ Matter Amid Mass Protests Over Racial Injustice
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.”
Image element courtesy of Gage Skidmore.
American Bar Association Says Firms Working ‘Indirectly’ With Marijuana Industry Should Get COVID Relief
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:
Bermuda Government Releases Marijuana Legalization Bill For Public Feedback
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.
The Attorney-General and Minister of Legal Affairs, Senator the Hon. Kathy Lynn Simmons, JP has announced new regulations by the Government of #Bermuda to reform Cannabis laws.
— Bermuda Government (@BdaGovernment) June 4, 2020
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.
We want to hear from you! Share your thoughts by July 3rd.https://t.co/kkGtsuQ1ES
— Premier David Burt (@BermudaPremier) June 5, 2020
“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: