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What Tuesday’s Elections Mean For State And Local Marijuana Reform

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Tuesday’s state and local elections across the U.S. saw several gains for the marijuana reform movement, as well as some potential setbacks. Legislatures shifted, cities decided on cannabis business expansion and new officeholders were seated.

A wave of newly elected prosecutors could further shape the drug policy landscape throughout the country, with a “mixed bag” of results coming out of the elections. District attorneys elected in Virginia campaigned on largely pro-reform platforms, but drug warriors kept their seats in places like Pennsylvania and New York.

From Virginia to California, here’s a rundown of the most consequential election outcomes as it concerns marijuana policy.

Virginia

In Virginia, where broad marijuana reform has routinely stalled session after session, Democrats seized the majority in both the Senate and Assembly. The new composure of the legislature bodes well for the prospects of passing cannabis decriminalization and comprehensive medical marijuana legislation in 2020.

Gov. Ralph Northam (D), who campaigned on decriminalization during his election in 2017, said on Wednesday that the issue remains a priority, and Attorney General Mark Herring told Virginia Mercury last month that lawmakers will likely pursue that policy change first and then “get to work on a larger study about how and when we could move toward legal and regulated adult use.”

“The majority shift will bring a sea change to marijuana policy in the Commonwealth,” Jenn Michelle Pedini, executive director of Virginia NORML, said. “Virginia spent over $100M in 2018 enforcing prohibition, which flies in the face of public opinion. Three quarters of Virginians favor fines not crimes for possession of marijuana, and six out of ten support legalizing adult-use. Finally, Virginia has a path to implement evidence-based policies that reflect the attitudes of its constituents.”

Voters in the state also elected several reform-minded prosecutors, including Parisa Dehghani-Tafti and Steve Descano, who’s pledged that his office would not prosecute low-level cannabis offenses. Buta Biberaj, who also won her bid for a prosecutor position in the commonwealth, agreed that nobody should be incarcerated for marijuana possession.

Kentucky

In one of the most notable development of the night, a Democratic candidate who supports medical cannabis legalization appears to have beaten out an incumbent Republican in Kentucky’s gubernatorial race. Current Attorney General Andy Beshear narrowly defeated Gov. Matt Bevin (R), who has also spoken in favor of medical marijuana but adamantly opposes recreational legalization.

Beshear’s campaign site states that he wants medical cannabis legalization to be put to voters as a proposed constitutional amendment, which he said he’d vote for, in part because of its potential use as an alternative to opioids.

“I would vote for it because I’ve seen the impact opioids have had on every Kentucky community,” the governor-elect said. “So many Kentucky families have seen a loved one fall into addiction, and their lives have been devastated. If medical marijuana is an alternative and gives people the chance to get pain relief without being subjected to opioids, I think it’s something we’ve got to explore.”

Beshear also said that legalization could generate tax revenue that can be used to fund the state’s pension system—a position that puts him at odds with Bevin.

During an interview with WBKO in April, Beshear also voiced support for decriminalizing drug possession, including for substances beside cannabis.

“No one who is caught simply possessing marijuana should ever go to jail, or should ever go to prison,” he said, adding that those suffering from addiction to other illicit drugs should be “in treatment, not jail.”

Agriculture Commissioner Ryan Quarles, a strong proponent of the the hemp industry, held onto his seat. Following the election, Quarles celebrated the expansion of the hemp industry, noting that “during the first term we were dedicated to putting Kentucky first… and here in Kentucky, we are making hemp great again.”

But while the commissioner said he’s not opposed to medical cannabis legalization, he’s decidedly less vocal about the issue compared to his competitor Robert Conway, who brought up the policy during his concession speech.

Cannabis was also featured in the concession speech for Greg Stumbo, who ran for attorney general and lost to Daniel Cameron. Stumbo closed his speech “with an anecdote about medical marijuana helping a family” and called for its legalization, Courier Journal reporter Matthew Glowicki said.

Colorado

In Mead, voters chose not to allow adult-use cannabis businesses to operate in their city. Loveland voters similarly rejected a proposal to allow marijuana firms, six years after the city first banned them. But the cannabis market did get a boost in Louisville, where voters approved a marijuana excise tax and adopted a policy allowing cannabis cultivation facilities to operate in their jurisdiction.

Illinois

The city of Deerfield’s Village Board voted in favor of allowing adult-use marijuana businesses to operate in their jurisdiction. Meanwhile, Arlington Heights Village Board opted not to welcome cannabis firms.

“For me, there is no compromise on this issue,” Mayor Tom Hayes said.

Maine

Voters in Camden elected to establish a process to obtain licenses for cannabis manufacturing businesses. Retail facilities for recreational and medical cannabis will be allowed under ordinances approved by voters in Newry on Tuesday.

Massachusetts

A nonbinding referendum to allow adult-use cannabis sales in Agawam was soundly defeated in a 2,682-1,831 vote.

Michigan

Ten cities throughout Michigan voted on measures to allow or prohibit adult-use marijuana businesses to operate in their jurisdictions—and seven of those opted to block the industry. The votes come roughly a year after the state’s legal cannabis law was approved by voters.

Allen Park, Hudson City, Keego Harbor,  Marenisco Township, Mount Pleasant, South Haven and Walled Lake each voted against proposals to allow cannabis businesses to operate in their towns, or in favor of measures calling for a ban on recreational cannabis facilities. Crystal Township, Lincoln Park and Northfield Township residents cast votes in favor of the industry.

New Jersey

Efforts to reform New Jersey’s marijuana laws have been complicated, largely because of opposition from the Republicans in the legislature. Those efforts will face a slightly tougher road following Tuesday’s election, where the GOP picked up seats in the Assembly, as well as one seat in the Senate. That said, lawmakers have said they may take a shot at passing a legalization bill in the lame duck session before the newly formulated legislature is seated.

Ohio

Three cities in Ohio voted in favor of resolutions to decriminalize the possession of cannabis, while three others rejected similar proposals. The pro-decriminalization votes build on gains the state has made at the local level over the past four years, which have seen more than a dozen cities approve measures to loosen penalties on possession, either through voter-approved initiatives or the local government action.

Three More Ohio Cities Approve Marijuana Decriminalization Measures, But Three Others Are Defeated

This piece was updated to add comment from Virginia NORML.

Photo courtesy of Mike Latimer.

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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Top IRS Official Says Marijuana Banking Reform Would Help Feds ‘Get Paid’

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The Internal Revenue Service (IRS) would like to get paid—and it’d help if the marijuana industry had access to banks like companies in other legal markets, an official with the federal department said. She also talked about unique issues related to federal tax deductions for cannabis businesses.

At an event hosted by UCLA’s Annual Tax Controversy Institute on Thursday, IRS’s Cassidy Collins talked about the “special type of collection challenge” that the agency faces when it comes to working with cannabis businesses while the product remains federally illegal.

While IRS isn’t taking a stand on federal marijuana policy, Collins said that the status quo leaves many cannabis businesses operating on a cash-only basis, creating complications for the agency, in part by making it harder for banks to “pay us.”

“The reason why [the marijuana industry is] cash intensive is twofold,” she said. “Number one, a lot of customers don’t want a paper trail showing that they’re buying marijuana, and number two, the hesitancy of banks to allow marijuana businesses to even bank with them.”

Of course, the reason why many financial institutions remain hesitant to take on cannabis companies as clients is because the plant is a strictly controlled substance under federal law.

“There’s been a number of legislative bills that have been introduced—and I am definitely not expressing any opinion personally or on behalf of the IRS about any pending or proposed legislation,” Collins, who is a senior counsel in the IRS Office of Chief Counsel, said. “But it is interesting to note that, if the law changed so that the marijuana businesses could have banks, that would make the IRS’s job to collect [taxes] a lot easier. As part of collection, we want the money. That’s our end goal there.”

A major part of what makes cannabis businesses unique is that they don’t qualify for traditional tax credits under an IRS code known as 280E. That policy “prohibits them from claiming deductions for business expenses because they’re technically being involved in drug trafficking,” Collins explained at the event, from which small excerpts of her comments were reported by Bloomberg.

There are some options available to lessen the burden on marijuana firms, however. At the end of the day, “IRS will work with marijuana companies because, again, we want to get paid,” Collins said.

One of the ways the agency works with marijuana business operators is to have them visit designated IRS “tax assistance centers” that accept cash payments in excess of $50,000. But the official warned businesses to “be prepared to be there for a little while” as the center checks—and double checks—the amount of cash being submitted.

“Revenue officers will assist the marijuana companies in paying us,” she said.

IRS officials could also help cannabis firms by having officials accompany them “to the bank in order to try to help the taxpayer secure a cashier’s payment to pay the IRS, as well as using money orders,” she said, adding that “our revenue officers are are wanting to work with the marijuana companies to help assist them to pay us.”

“When the revenue officers are there in person with the taxpayer, that could potentially help increase the likelihood that the bank will cooperate and help the taxpayer transition into a cashier’s check,” she continued. “And that has been a trend since this first became legal [at the state level], that more and more banks are allowing cannabis companies to bank with them.”

In a report published earlier this year, congressional researchers examined tax policies and restrictions for the marijuana industry—and how those could change if any number of federal reform bills are enacted.

IRS, for its part, said last month that it expects the cannabis market to continue to grow, and it offered some tips to businesses on staying compliant with taxes while the plant remains federally prohibited.

As it stands, banks and credit unions are operating under 2014 guidance from the Financial Crimes Enforcement Network (FinCEN) that lays out reporting requirements for those that choose to service the marijuana industry.

Leaders in both chambers of Congress are working on legalization bills to end federal marijuana prohibition. But stakeholders are hopeful that, in the interim, legislators will enact modest marijuana banking reform. Legislation to protect financial institutions from being penalized for working with cannabis businesses passed the House for the fifth time last month.

Rodney Hood, a board member of the National Credit Union Administration, wrote in a Marijuana Moment op-ed this month that legalization is an inevitability—and it makes the most sense for government agencies to get ahead of the policy change to resolve banking complications.

IRS separately hosted a forum in August dedicated to tax policy for marijuana businesses and cryptocurrency.

Earlier this year, IRS Commissioner Charles Rettig told Congress that the agency would “prefer” for state-legal marijuana businesses to be able to pay taxes electronically, as the current largely cash-based system under federal cannabis prohibition is onerous and presents risks to workers.

Former Treasury Secretary Steven Mnuchin said in 2019 that he’d like to see Congress approve legislation resolving the cannabis banking issue and he pointed to the fact that IRS has had to build “cash rooms” to deposit taxes from those businesses as an example of the problem.

IRS released updated guidance on tax policy for the marijuana industry last year, including instructions on how cannabis businesses that don’t have access to bank accounts can pay their tax bills using large amounts of cash.

The update appears to be responsive to a Treasury Department internal watchdog report that was released earlier in the year. The department’s inspector general for tax administration had criticized IRS for failing to adequately advise taxpayers in the marijuana industry about compliance with federal tax laws. And it directed the agency to “develop and publicize guidance specific to the marijuana industry.”

Luxembourg Set To Become First European Country To Legalize Marijuana Following Government Recommendation

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Luxembourg Set To Become First European Country To Legalize Marijuana Following Government Recommendation

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Luxembourg is poised to become the first European country to legalize marijuana, with key government agencies putting forward a plan to allow the possession and cultivation of cannabis for personal use.

The ministers of justice and homeland security on Friday unveiled the proposal, which will still require a vote in the Parliament but is expected to pass. It’s part of a broader package of reform measures the agencies are recommending.

Under the marijuana measure, adults 18 and older could grow up to four plants. However, under the non-commercial model that is being proposed, possessing more than three grams in public would still be a civil offense, carrying a fine of €25-500 ($29-581). Currently, the maximum fine for possession is €2,500 ($2,908).

In terms of access, adults would be able to buy and trade cannabis seeds for their home garden.

Justice Minister Sam Tamson said the government felt it “had to act” and characterized the home cultivation policy change as a first step, The Guardian reported.

“The idea is that a consumer is not in an illegal situation if he consumes cannabis and that we don’t support the whole illegal chain from production to transportation to selling where there is a lot of misery attached,” he said. “We want to do everything we can to get more and more away from the illegal black market.”

While limited in scope, the reform would make Luxembourg the first country in Europe to legalize the production and possession of marijuana for recreational use. Cannabis has been widely decriminalized in certain countries in the continent, but it has remained criminalized by statute.

Government sources in Luxembourg told The Guardian that plans are in the works to develop a program where the state regulates the production and distribution of marijuana. Tamson said they are working to resolve “international constraints” before taking that step, however, referring to United Nations treaty obligations that multiple U.S. states and other countries like Canada and Uruguay have openly flouted.

For now, the country is focusing on legalization within a home setting. Parliament is expected to vote on the proposal in early 2022, and the ruling parties are friendly to the reform.

This has been a long time coming, as a coalition of major parties of Luxembourg agreed in 2018 to enact legislation allowing “the exemption from punishment or even legalization” of cannabis.

Meanwhile in the U.S., congressional lawmakers are working to advance legalization legislation. A key House committee recently approved a bill to end marijuana prohibition, and Senate leadership is finalizing a separate reform proposal.

In Mexico, a top Senator said this week that lawmakers could advance legislation to regulate marijuana in the coming weeks. The Supreme Court has already ruled that adults cannot be criminalized over possession or cultivation, but there’s currently no program in place to provide access.

New Bipartisan Marijuana Research Bill In Congress Would Let Scientists Study Dispensary Products

Photo courtesy of Mike Latimer.

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New Bipartisan Marijuana Research Bill In Congress Would Let Scientists Study Dispensary Products

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A bipartisan group of federal lawmakers introduced a bill on Thursday to remove barriers to conducting research on marijuana, including by allowing scientists to access cannabis from state-legal dispensaries.

The Medical Marijuana Research Act, filed by the unlikely duo of pro-legalization Rep. Earl Blumenauer (D-OR) and prohibitionist Rep. Andy Harris (R-MD), would streamline the process for researchers to apply and get approved to study cannabis and set clear deadlines on federal agencies to act on their applications.

“Congress is hopelessly behind the American people on cannabis, and the quality of our research shows why that is an urgent problem,” Blumenauer told Marijuana Moment. “Despite the fact that 99 percent of Americans live in a state that has legalized some form of cannabis, federal law is still hamstringing researchers’ ability to study the full range of health benefits offered by cannabis, and to learn more about the products readily available to consumers.”

“It’s outrageous that we are outsourcing leadership in that research to Israel, the United Kingdom, Canada, and others. It’s time to change the system,” he said.

Late last year, the House approved an identical version of the cannabis science legislation. Days later, the Senate passed a similar bill but nothing ended up getting to the president’s desk by the end of the last Congress. Earlier this year, a bipartisan group of senators refiled their marijuana research measure for the current 117th Congress.

Meanwhile, lawmakers are also advancing a separate strategy to open up dispensary cannabis to researchers. Large-scale infrastructure legislation that has passed both chambers in differing forms and which is pending final action contains provisions aimed at allowing researchers to study the actual marijuana that consumers are purchasing from state-legal businesses instead of having to use only government-grown cannabis.

The new bill filed this week by Blumenauer and Harris, along with six other original cosponsors, would also make it easier for scientists to modify their research protocols without having to seek federal approval.


Marijuana Moment is already tracking more than 1,200 cannabis, psychedelics and drug policy bills in state legislatures and Congress this year. Patreon supporters pledging at least $25/month get access to our interactive maps, charts and hearing calendar so they don’t miss any developments.

Learn more about our marijuana bill tracker and become a supporter on Patreon to get access.

It would additionally mandate that the Drug Enforcement Administration (DEA) license more growers and make it so there would be no limit on the number of additional entities that can be registered to cultivate marijuana for research purposes. It would also require the U.S. Department of Health and Human Services (HHS) to submit a report to Congress within five years after enactment to overview the results of federal cannabis studies and recommend whether they warrant marijuana’s rescheduling under federal law.

“The cannabis laws in this country are broken, including our laws that govern cannabis research,” Blumenauer said in remarks in the Congressional Record. “Because cannabis is a Schedule I substance, researchers must jump through hoops and comply with onerous requirements just to do basic research on the medical potential of the plant.”

The new legislation will “both streamline the often-duplicative licensure process for researchers seeking to conduct cannabis research and facilitate access to an increased supply of higher quality medical grade cannabis for research purposes,” he said, adding that expanded studies will help make sure “Americans have adequate access to potentially transformative medicines and treatments.”

For half a century, researchers have only been able to study marijuana grown at a single federally approved facility at the University of Mississippi, but they have complained that it is difficult to obtain the product and that it is of low quality. Indeed, one study showed that the government cannabis is more similar to hemp than to the marijuana that consumers actually use in the real world.

There’s been bipartisan agreement that DEA has inhibited cannabis research by being slow to follow through on approving additional marijuana manufacturers beyond the Mississippi operation, despite earlier pledges to do so.

In May, the agency finally said it was ready to begin licensing new cannabis cultivators. Last week, DEA proposed a large increase in the amount of marijuana—and psychedelics such as psilocybin, LSD, MDMA and mescaline—that it wants produced in the U.S. for research purposes next year.

Under the new House bill, the agency would be forced to start approving additional cultivation applications for study purposes within one year of the legislation’s enactment.

HHS and the attorney general would be required under the bill to create a process for marijuana manufacturers and distributors to supply researchers with cannabis from dispensaries. They would have one year after enactment to develop that procedure, and would have to start meeting to work on it within 60 days of the bill’s passage.

In general, the legislation would also establish a simplified registration process for researchers interested in studying cannabis, in part by reducing approval wait times, minimizing costly security requirements and eliminating additional layers of protocol review.

Read the full text of the new marijuana research bill below:

Click to access medical-marijuana-research-act-hr-5657-text.pdf

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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