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Watch Live: Key Congressional Committee To Vote On Marijuana Banking Bill

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A major congressional financial committee is scheduled to vote on a series of bills this week, and that includes bipartisan legislation that would protect banks from being penalized by federal regulators for working with marijuana businesses.

The bill, introduced by Reps. Ed Perlmutter (D-CO) and Denny Heck (D-WA), and cosponsored by more than a third of the entire House, is seen by legalization advocates as the first of several pieces of cannabis legislation that the Democratic-controlled House will take up as the debate over broader marijuana reform continues on Capitol Hill.

The Secure And Fair Enforcement (SAFE) Banking Act is meant to give banks reassurance that servicing cannabis businesses will not result in federal prosecution under existing money laundering or drug laws. While more financial institutions are accepting marijuana business accounts, others refuse to out of concern about the prospect of being punished, which leaves some businesses to operate on a cash-only basis that can make them targets of crime.

Watch the House Financial Services Committee vote on amendments and passage of the marijuana banking bill below:

Watch the committee debate and vote on amendments to the marijuana banking bill during its Wednesday meeting below:

On Wednesday, the panel processed a number of amendments to the legislation via voice votes, with roll call votes and action on final passage expected Thursday morning.

Amendments adopted by the committee included one extending protections to “de novo” banking institutions seeking charters or master accounts from a Federal Reserve bank. Another successful measure expands the provisions to cover insurance companies. A third requires the Government Accountability Office to study previous reports that banks are required to file on their marijuana business customers to understand how effective they are in identifying bad actors.

Among amendments defeated by voice votes are ones that would limit the bill to cover only hemp businesses and revoke protections from banks that serve marijuana operations located close to schools. Others sought to delay enactment of the bill until cannabis is federally descheduled, until federal financial regulators are able to issue new guidance to banks or until the Treasury secretary certifies the legislation wouldn’t leave any financial institution more susceptible to illicit financial activity and money laundering.

The banking bill “addresses an urgent public safety concern for legitimate businesses that currently have no recourse but to operate with just cash,” Chairwoman Maxine Waters (D-CA) said at the start of the committee meeting on Tuesday. “However, I also consider this bill as part of a holistic approach toward providing criminal justice reform to those who have been harmed by criminalization of marijuana and should not by any means be the only bill the House takes up on the important issue of cannabis reform.”

Members of the committee also discussed the bill during portions of their Tuesday meeting:

Last week, Republicans on the Financial Services Committee had requested that Waters delay the vote on the banking bill, writing in a letter that they had several “unanswered questions” about the measure.

“Some on my side support the measure as written. Many oppose it,” Rep. Patrick McHenry (R-NC), the panel’s top Republican, said at the meeting. “Most important for this committee, we need to ensure that we’re doing our due diligence before proceeding. One committee hearing is not enough to fully understand the consequences of this bill. It is a massive change in federal policy.”

Currently, the bill has 152 cosponsors, including 12 Republicans. That’s the most support that a standalone piece of marijuana legislation has ever received in Congress.

The committee held a hearing last month to discuss banking issues in the cannabis industry and the SAFE Banking Act specifically. There, lawmakers heard testimony about the need to change existing laws in the interest of transparency and public safety.

Since then, Perlmutter has floated an amendment, which he’s expected to introduce when the bill comes before the committee, that would require the government to study and issue recommendations about diversity in the cannabis market and expanding banking access for minority-owned and women-owned businesses, among other changes.

Lawmakers Press Treasury Official On Marijuana Business Banking Access

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.

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Congressional Committee Asks JUUL For Documents On Marijuana Partnerships

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Is the e-cigarette company JUUL planning on expanding its stake in the marijuana industry?

That’s one question the chair of a congressional subcommittee asked the company in a letter concerning JUUL’s role in the “youth e-cigarette epidemic” earlier this month.

Lawmakers have frequently criticized JUUL for making products—specifically flavored e-cigarette cartridges—that allegedly appeal to young people at a time when rates of cigarette use are steadily declining. But while JUUL was developed by the cannabis vaporizer company PAX, it hasn’t announced plans to further partner with marijuana companies.

Rep. Raja Krishnamoorthi (D-IL), who chairs the House Subcommittee on Economic and Consumer Policy, apparently sees the possibility on the horizon, though.

In a letter sent to JUUL on June 7, the congressman said his panel was investigating youth e-cigarette usage and, specifically, how the company’s marketing tactics might be exacerbating the issue. He requested documents on everything from clinical trials on how JUUL devices divert people away from traditional cigarettes to communications on the company’s rationale for the nicotine concentration of JUUL pods.

Tucked within the extensive request is a question about potential marijuana partnerships. Krishnamoorthi asked for:

“All documents, including memoranda and communications, referring or relating to proposals, plans, and/or intended partnerships or collaborations between JUUL and any cannabis-related companies, including but not limited to Cronos Group.”

It’s not clear where the Cronos-specific mention comes from, but the company has perviously caught the interest of the tobacco industry. The maker of Marlboro cigarettes, Altria Group, invested almost $2 billion in the Canada-based cannabis company in December. Two weeks later, Altria invested $13 billion in JUUL.

Marijuana Moment reached out to JUUL, Cronos and Krishnamoorthi’s office for comment, but representatives did not respond by the time of publication.

If a partnership does emerge, it would likely be met with some controversy, as opponents and proponents of marijuana reform alike have long expressed concern that the tobacco industry would take over the cannabis market and commercialize it in a way that mirrors how it peddled cigarettes.

Of course, given that tobacco use is declining and tobacco companies generally have the infrastructure that would make a pivot to cannabis relatively simple, such a partnership would not be especially surprising.

Senate Majority Leader Mitch McConnell (R-KY) has made the case several times that tobacco farmers in his state could leverage the federal legalization of industrial hemp and its derivatives by growing the crop to offset profit losses from declining tobacco sales.

Read Rep. Krishnamoorthi’s full letter to JUUL below:

2019-06-07.Krishnamoorthi t… by on Scribd

Americans Want CBD Available Over-The-Counter, Poll Finds

Photo courtesy of Wikimedia.

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New York Lawmakers Might Actually Vote On Marijuana Legalization This Week

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With just days left before the end of the legislative session, efforts to legalize marijuana in New York have been revived, with a possible vote this coming week.

Though momentum to pass a legalization measure seemed to largely die off after lawmakers in neighboring New Jersey announced they wouldn’t move forward with plans to end cannabis prohibition through the legislature, advocates are increasingly optimistic that a deal in the Empire State is imminent.

Democratic members in both the Senate and Assembly held conferences last week to discuss details of the legislation. Spectrum News reported that the meetings went well, with members indicating that there’s support for the measure.

That’s just one of several positive signs that a proposal many observers thought was dead for the year has new life.

On Saturday and Sunday, staff for legislative leaders from both chambers and Gov. Andrew Cuomo (D) met to negotiate provisions of a revised legalization plan.

On Wednesday, an earlier Senate version of the bill was assigned “same as” status in the Assembly version. That means the current proposals in each chamber lined up with identical language and is considered to be an indicator that the legislation could pass.

Assembly Speaker Carl Heastie (D) said on Friday that his party has yet to determine whether they’ll bring the bill to the floor, but he added that “I think there is support in the conference.”

He also characterized the window of time until the end of the session on Wednesday as “an eternity.”

Cuomo, who said late last month that passing legalization remains a top 10 priority, has said that lawmakers who fail to approve items on his agenda, including ending cannabis prohibition, “should all be primaried, because that is a failure of a basic progressive agenda.”

On the flip side, the chairman of New York’s Democratic Party said earlier this month that if the Senate approves the legalization bill, they run to risk of alienating voters in certain areas such as Long Island and upstate New York. But that argument neglects to account for recent polling that shows voters in those regions strongly support legalization.

Notably, the measure’s most vocal opponents with the anti-legalization Smart Approaches to Marijuana have been sending email blasts in recent days urging their supports to call senators and voice opposition to the bill, giving the impression that the group is anticipating a vote.

Assembly Majority Leader Crystal Peoples-Stokes (D), sponsor of the legalization legislation, seemed to confirm that suspicion on Friday, stating that after “conversations with my co-sponsor and colleague in the Senate, I am even more confident of a path for victory.”

But despite that confidence, the fate of legalization in New York remains murky. An analysis earlier this month found that legalization was two votes short of a needed majority in the Senate.

Meanwhile, a number of key elected officials are calling on the governor and lawmakers to not only push legalization over the finish line but to include certain key provisions in the final legislation.

State Attorney General Letitia James (D) sent a letter urging that the bill expunge prior cannabis records.

“Before we create a booming business for legal marijuana, we must provide relief to those individuals that have paid much more to society than what was due,” she wrote.

New York City Mayor Bill de Blasio (D), a 2020 presidential candidate, also pushed for expungements and said in a Twitter thread that legalization should “empower local business and not big corporations.”

And the Manhattan and Albany County district attorneys co-authored an op-ed calling leaders to “correct staggering inequities and promote public safety by passing” legalization.

 

The Buffalo News reported on Sunday afternoon that there were still a number of outstanding issues left to be settled between lawmakers, including whether or not home cultivation of cannabis would be allowed, how tax revenue would be allocated and whether localities would have to proactively opt in to allowing marijuana businesses or if there would instead be an opt out provision for those wanting to ban cannabis commerce.

The session ends on Wednesday, and so far no vote has been scheduled in either chamber.

Meanwhile, lawmakers early on Monday morning filed what appears to be backup legislation to expand the decriminalization of marijuana and to provide a process to expunge or vacate prior cannabis convictions. And others support putting legalization on the ballot through a referendum that voters can decide on.

The situation is very fluid, and over the next few days advocates will be stepping up the push for action in Albany. On Sunday, they held a rally outside Cuomo’s Manhattan office.

Bill Allowing Interstate Marijuana Commerce Heads To Oregon Governor’s Desk

This post has been updated to include the latest developments as well as comment from a number of elected officials.

Photo courtesy of Philip Steffan.

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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Texas Governor Signs Bill To Expand State’s Medical Marijuana Program

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The governor of Texas signed a bill into law on Friday that significantly expands the state’s medical cannabis program.

The legislation, which was overwhelmingly approved by lawmakers last month, adds multiple medical conditions to the list of disorders that qualify patients of low-THC marijuana. Currently only patients with intractable epilepsy qualify under the CBD-focused program.

New qualifying conditions include epilepsy, multiple sclerosis, terminal cancer, autism, spasticity and amyotrophic lateral sclerosis.

Gov. Greg Abbott (R) signed the bill with little fanfare.

Reform advocates said the legislation is a big step in the right direction, even though it doesn’t go as far as they’d hoped. A 0.5 THC cap on marijuana products remained in the bill, for example, and a section that would have established a research program to study the therapeutic potential of cannabis was removed.

“Cannabis is effective medicine for many patients suffering from debilitating medical conditions,” Heather Fazio, director of Texans for Responsible Marijuana Policy, told Marijuana Moment. “HB 3703 represents a positive step toward a functional medical cannabis program, but sadly, it still leaves behind millions of Texas families that could benefit from legal access.”

Also this legislative session, the House of Representatives approved bills to more comprehensively expand the medical cannabis program and to decriminalize marijuana possession, but they died in the Senate.

Abbott signed a hemp legalization bill earlier this week.

Bill Allowing Interstate Marijuana Commerce Heads To Oregon Governor’s Desk

Photo courtesy of Brian Shamblen.

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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