For the first time in history, a congressional committee has approved a bill to end federal marijuana prohibition.
The House Judiciary Committee passed the Marijuana Opportunity, Reinvestment and Expungement (MORE) Act in a 24-10 vote on Wednesday, setting the stage for a full floor vote.
The vote saw two Republicans—Reps. Matt Gaetz (R-FL) and Tom McClintock (R-CA)—join their Democratic colleagues in support of the bill.
Debate on the bill generally followed two tracks. Republican lawmakers argued that the bill was being rushed and that it should be subject to additional hearings, while Democratic members responded that there’s been enough debate on the issue and that there’s no time for delay in beginning to reverse decades of harms of prohibition enforcement.
On the other hand, some GOP members who recognized that the status quo is untenable pushed for legislative action on a separate piece of bipartisan cannabis legislation—the Strengthening the Tenth Amendment Through Entrusting States (STATES) Act—which does not contain social equity elements or formally remove marijuana from the Controlled Substances Act and would simply leave cannabis policy up to the states, arguing that a scaled-down approach would fare better in the Senate.
“We may need something a little less than MORE,” Gaetz said.
The approved legislation, introduced by Chairman Jerrold Nadler (D-NY), would federally deschedule cannabis, expunge the records of those with prior marijuana convictions and impose a five percent tax on sales, revenue from which would be reinvested in communities most impacted by the drug war.
It would also create a pathway for resentencing for those incarcerated for marijuana offenses, as well as protect immigrants from being denied citizenship over cannabis and prevent federal agencies from denying public benefits or security clearance due to its use.
“These steps are long overdue. For far too long we’ve treated marijuana as a criminal justice problem instead of a matter of personal choice and public health,” Nadler said in his opening remarks. “Arresting, prosecuting and incarcerating people at the federal level is unwise and unjust.”
“I’ve long believed that the criminalization of marijuana has been a mistake,” he said. “The racially disparate enforcement of marijuana laws has only compounded this mistake with serious consequences, particularly for minority communities.”
House and Senate members, and outside legalization advocates, cheered the bill’s committee approval.
“The passage of the MORE Act represents the first time that the Judiciary Committee has ever had a successful vote to end the cruel policy of marijuana criminalization,” NORML Political Director Justin Strekal said. “Not only does the bill reverse the failed prohibition of cannabis, but it provides pathways for opportunity and ownership in the emerging industry for those who have suffered most.”
Earlier, lawmakers that have advocated for cannabis reform held a press conference in advance of the vote on Tuesday to highlight the need for the federal policy change. And while Nadler said that it was possible that compromises could be made later in the legislative process, he doesn’t see the need to scale back the proposal’s reach at the onset and feels that bipartisan support will build around his bill.
He also told Marijuana Moment that he is optimistic the legislation will get a full floor vote before the end of the current Congress, and part of that confidence comes from the fact that his panel has been communicating with other committees where the bill has been referred in the hopes that they waive jurisdiction to expedite its advancement.
Watch the committee markup on the Marijuana Opportunity, Reinvestment and Expungement (MORE) Act below:
Rep. Doug Collins (R-GA), ranking member of the committee, said he does “believe we need to change our attitudes and our processes because the federal government has completely failed in this area,” but that he doesn’t support the MORE Act.
Several amendments were introduced during the markup.
Nadler put forth an amendment to his own bill, which was adopted on a voice vote, that simply adds a findings section noting the racial disparities in prohibition enforcement and the lack of equity for communities targeted by the war on drugs in the legal cannabis industry.
Rep. Ken Buck (R-CO) offered an amendment that would replace major provisions of the MORE Act with the STATES Act, but he didn’t request a roll call on it following its defeat on a voice vote. Nadler responded to the proposal by noting various issues such as banking and veterans’ access that the STATES Act doesn’t clearly address since it doesn’t deschedule cannabis.
“If we pass the bill that we want, and the Senate passes a different bill, we can negotiate,” the chairman said. “That’s what conference committees are for.”
Rep. Cedric Richmond (D-LA) filed an amendment that would expand the justice reinvestment provisions of the bill. The measure, which was meant to clarify that provisions aimed at helping people most harmed by the war on drugs are not limited to individuals but could also be used to invest in community-wide efforts such as mentorship programs, was approved on a voice vote.
Rep. Sheila Jackson Lee (D-TX) put forth a proposal, which was accepted on a voice vote, to require the Government Accountability Office and National Institute on Drug Abuse to conduct a study examining the demographic characteristics of people convicted of federal marijuana offenses.
Buck filed a second amendment requiring GAO to study the societal impact of legalization, and it was rejected on a voice vote.
Much of the conversation during the markup, even among Republican members, involved recognition that prohibition isn’t working and federal policy should change regardless of personal opinions about cannabis.
“I don’t sing the praises of marijuana, I simply recognize the limitation of our laws and also the limits on my ability to try and run everybody’s lives for them,” McClintock (R-CA) said.
McClintock introduced an amendment that would have divided tax revenue generated from legal cannabis sales between local law enforcement and the general revenue fund within the Treasury Department, but it was ruled not germane, with the chairman saying its provisions fall under the jurisdiction of the Ways and Means Committee.
The committee vote comes two months after the House approved a bill that would protect banks that service state-legal cannabis businesses from being penalized by federal regulators. That vote ignited a debate within advocacy circles about whether Congress should pursue incremental reform that might be more amenable to the Republican-controlled Senate first or instead focus their resources on passing comprehensive legalization legislation that addresses social equity from the outset.
Prior to the vote on the marijuana banking bill, several advocacy groups, including the ACLU, urged House leadership to delay the action until wide-ranging reform cleared the chamber.
Many observers expect the MORE Act to receive a favorable vote if it reaches the House floor. The bill’s fate in the Senate is much less certain, however, and may depend on the kind of compromises that Nadler said he hoped to avoid.
This markup garnered significant attention, as it represents the first of its kind that isn’t simply a debate about whether cannabis prohibition should be ended—which occurred in a House subcommittee over the summer—but an actual vote on a bill that would accomplish legalization.
This story was updated to include additional details from the markup.
Photo courtesy of Philip Steffan.
Trade Associations And Civil Rights Groups Send Mixed Messages On Marijuana Banking To Senate
A coalition of trade associations sent a letter to Senate Banking Committee leadership on Thursday, urging a vote on legislation to protect financial institutions that service state-legal marijuana businesses.
But those senators are also feeling pressure from leading civil rights groups like the ACLU and Human Rights Watch, which sent an earlier letter insisting that they not allow cannabis banking to detract from more comprehensive reform that addresses social equity.
The organizations involved in the latest letter—including the American Bankers Association and Credit Union National Association—said that advancing the Secure and Fair Enforcement (SAFE) Banking Act or similar legislation is pivotal to ensuring that stakeholders receive needed clarity and are shielded from being penalized by federal regulators.
The letter, addressed to Banking Chair Mike Crapo (R-ID) and Ranking Member Sherrod Brown (D-OH), emphasized the bipartisan nature of the House passage of the bill in September and the growing movement at the state level to legalize cannabis for medical or recreational purposes.
“Our organizations support an initial legislative step that allows the legal cannabis industry into the banking system,” the groups, which also include the Council of Insurance Agents and Brokers, International Council of Shopping Centers and National Association of REALTORS, wrote. “Ultimately, protecting law-abiding financial institutions and ancillary businesses from their currently untenable position and addressing increasing public safety concerns.”
As more states reform their marijuana laws, however, “distribution, sale, possession, research, transaction, housing, employment, and a broader landscape of cannabis is becoming increasingly problematic” for stakeholders under federal prohibition.
“Ultimately, this creates more legal and security concerns that impact the operations and safety of businesses and consumers,” they said. “Finally, the lack of an available safe harbor for cannabis will continue to challenge the full adoption and deployment of the legal hemp and CBD products market in the U.S. due to the inextricable link between hemp and cannabis.”
“To resolve this, we urge the Committee to vote on the SAFE Banking Act or similar measures. Such measures are meant to create a safe harbor for depository institutions that provide a financial product or service to businesses in a state permitting the use of cannabis. A safe harbor will enable law enforcement and states to effectively monitor and regulate businesses while simultaneously bringing billions into the regulated banking sector.”
12 groups including ABA just wrote @MikeCrapo @SenSherrodBrown @senatemajldr @SenSchumer urging a vote on the #SAFEBanking Act. It's time to end the legal limbo over banking cannabis in the growing number of states where it's legal. Read the letter: https://t.co/1529vIHawq
— American Bankers Association (@ABABankers) December 12, 2019
The letter, also signed by Americans for Prosperity and R Street, recognizes that creating a federal regulatory scheme for marijuana will take time but says that the SAFE Banking Act represents “a critical first step to ensure that legal cannabis marketplaces are safe, legal, and transparent.”
Crapo has said that he’s interested in holding a vote on resolving the cannabis banking issue in his panel before the year’s end, but so far nothing has been scheduled. The chairman told Marijuana Moment in earlier interviews that there are several changes to the House-passed bill that he’d like to see but that he’s worried impeachment proceedings against the president will interfere with plans to hold a vote.
All that said, pressure from civil rights advocacy groups could complicate congressional efforts to get the banking bill approved. In October, several organizations including the ACLU, Drug Policy Alliance, Human Rights Watch and Center for American Progress sent a letter to Senate leadership, as well as Crapo and Brown, demanding that “marijuana legislation considered in the Senate include provisions that will guarantee equity in the industry.”
The letter, which doesn’t appear to have been previously reported and was obtained by Marijuana Moment, states that while the coalition agrees the SAFE Banking Act “is an incremental step toward rolling back the federal prohibition of marijuana, it fails to help communities that have been historically and disproportionately devastated by United States’ punitive drug laws.”
“As the Senate Committee on Banking, Housing, and Urban Affairs considers similar legislation, we insist that the legislation include provisions that ensure equity in the marijuana industry by creating opportunities for individuals who have been prohibited from this growing business either by legal or financial means,” the letter, which was also signed by the Immigrant Legal Resource Center, Leadership Conference on Civil and Human Rights and National Association of Social Workers, states.
“Indeed, this Congress has shown it understands the economic impact of legalization. But while progress on the business side of legalization is promising, it is not sufficient. Federal marijuana legislation must be comprehensive and lead with equity, addressing past and current harms to communities of color and low-income communities who bore the brunt of the failed war on drugs. We demand that any marijuana reform or legalization bill considered by the Senate] include robust provisions addressing equity. More than simply adding equity provisions to bills that address industry concerns, we need comprehensive reform that deschedules marijuana and addresses the inequities and harms continually inflicted by the failed war on drugs.”
In other words, the groups are insisting on broad reform prior to a vote on a bill viewed as largely beneficial to the cannabis industry—similar to a request they made of House members prior to the legislation’s passage in the chamber.
Read the marijuana banking letters from the trade associations and civil rights groups below:
GOP Congressman Knocks His Party For Failing To Pass Marijuana Reform
A Republican congressman says that whichever party is responsible for passing federal marijuana reform will “instantly” shoot up in the polls, while lamenting the fact that the GOP failed to do so when they controlled the House.
Rep. Thomas Massie (R-KY), a vocal advocate for hemp, was asked by Fox Business host Kennedy on Wednesday whether cannabis should be rescheduled under federal law.
“Absolutely,” he said. “The first party that does this—and I don’t understand why either party won’t do it—is going instantly gain 10 points in the general poll on which party versus the other.”
“We should have done it when we were in the majority,” he added. “The liberals should be asking Pelosi why she hasn’t put it on the floor yet.”
The House Judiciary Committee approved legislation last month to end federal marijuana prohibition, but it hasn’t yet been scheduled for floor action.
Massie made similar points during an interview with Marijuana Moment earlier this year, stating that if Republicans had advanced states’ rights-focused marijuana legislation, “I think we might still be in the majority.”
Of course, while Massie has supported legislation to allow states to set their own cannabis policies without federal intervention, as well as other more modest reform measures such as protecting banks that service marijuana businesses, he’s so far declined to cosponsor any bills that seek to deschedule cannabis.
The congressman has also expressed interest in changing federal gun control laws to allow cannabis consumers to purchase firearms.
Though it’s not clear exactly how much of a boost either party would get by passing a marijuana reform bill, a Pew poll released last month does show that there’s majority support for legalization among those who lean Republican (55 percent) as well those who lean Democratic (78 percent).
Photo courtesy of YouTube/Rep. Massie.
State Department Warns Travelers About Flying With Cannabis Oil Internationally
The U.S. State Department is warning international holiday travelers that while hemp-derived CBD might be legal in the U.S., it can land you in trouble if you take it certain places abroad.
“Make sure your gift isn’t a fa la la la la la la la la fail,” the department said in a tweet on Thursday. “Bringing along gifts like drones, CBD oils, and firearms can land you in trouble in foreign countries. Research what is and isn’t allowed before you travel.”
(Marijuana Moment’s editor provides some content to Forbes via a temporary exclusive publishing license arrangement.)
Photo courtesy of Flickr/DHS.