Connect with us

Politics

Where Presidential Candidate Michael Bennet Stands On Marijuana

Published

on

Sen. Michael Bennet (D-CO) announced on Thursday that he’s seeking the 2020 Democratic presidential nomination.

The second Coloradan to enter the race, Bennet opposed his state’s 2012 marijuana legalization initiative but has has since supported several wide-ranging cannabis bills in the Senate following voters’ approval the measure. NORML gives the senator an “A” grade.

Legislation And Policy Actions

The only piece of cannabis-related legislation Bennet has been the chief sponsor for is a 2017 bill to ensure that industrial hemp farmers are able to access federally controlled water.

“This bipartisan legislation provided needed clarity for farmers in Colorado who want to grow industrial hemp legally,” Bennet said in a press release. “This is a necessary measure to fix conflicting federal policies that are slowing the implementation of the Farm Bill pilot program and stifling new business opportunities in rural Colorado.”

He has also signed on to over a dozen marijuana bills as a cosponsor, including the Marijuana Justice Act, which would federally deschedule cannabis, penalize states that continue to enforce marijuana laws in a discriminatory way and reinvest funds into communities disproportionately impacted by the war on drugs.

Bennet also cosponsored the Strengthening the Tenth Amendment Through Entrusting States (STATES) Act during the 115th and 116th Congresses. That legislation would amend the Controlled Substances Act (CSA) to protect states that have legalized cannabis from federal enforcement action.

A bill from Senate Minority Leader Chuck Schumer (D-NY) that would deschedule marijuana also received Bennet’s cosponsorship. And he attached himself to legislation that would protect medical marijuana states from federal intervention during the 114th Congress.

On three occasions, Bennet cosponsored bipartisan legislation meant to shield banks that service state-legal cannabis businesses. The House version of the Secure And Fair Enforcement (SAFE) Banking Act was approved by the House Financial Services Committee in March. The senator also joined other lawmakers in offering a 2016 amendment to an addiction recovery bill that was also meant to safeguard marijuana banking access.

He offered a separate amendment that year for the Commerce, Justice, Science, and Related Agencies Appropriations Act, which would have called for the Drug Enforcement Administration (DEA) to approve at least three additional marijuana manufacturers for research purposes.

“Scientists in Colorado are eager to study marijuana to help advance its medicinal use and to promote a broader understanding of it,” Bennet said in a press release. “Unfortunately, the status quo doesn’t meet the needs of researchers across the country. Our amendment would help advance legitimate research, while also protecting against abuse.”

He’s also been an original cosponsor of legislation that would amend Internal Revenue Service (IRS) code to make it so marijuana businesses are able to make deductions and access tax credits that are available to other legitimate businesses. He supported that bill during the 114th, 115th and 116th Congress.

Bennet cosponsored legislation to remove hemp from the definition of marijuana under the CSA twice and also supported legislation to exempt CBD from the list of federally controlled substances.

He said in a press release that lifting restrictions on hemp and its derivatives like CBD, which “can significantly reduce the number of seizures for kids with epilepsy.”

The senator has put his name on a slew of letters calling for cannabis reform.

In 2014, he cosigned a letter asking the Obama administration to provide clarity and guidance on federal marijuana policy so that states like Colorado could continue to operate their cannabis programs unencumbered.

“We believe it is appropriate for the White House to assume a central and coordinating role for this government-wide approach,” Bennet and three other senators wrote. “We therefore believe it is incumbent upon the Administration to work with all federal departments and agencies setting forth a clear, consistent and uniform interpretation and application of the CSA and other federal laws that could affect the industry.”

Bennet sent a letter to the head of the IRS that same year urging the department to stop imposing a 10 percent tax on marijuana businesses just because they pay employee withholding taxes in cash, which is due to their lack of access to traditional banking services.

He was also one of four senators who sent a letter to the country’s top federal financial regulators in 2016, requesting guidance for banks interested in taking on cannabis business accounts. Clearer directives would mean that “financial institutions will be more likely to serve these legal businesses and allow them to access our banking system without fearing repercussion,” they wrote.

After then-White House Press Secretary Sean Spicer made remarks indicating that the federal government could crack down on legal cannabis states, Bennet and 10 other senators sent a letter to then-Attorney General Jeff Sessions expressing concerns about the comments and imploring the Justice Department not to use its resources to go after cannabis businesses.

He wrote to Sessions again in 2017 to request his assurance that industrial hemp manufacturers may access federally authorized financial institutions.

Bennet also rebuked Sessions for rescinding Obama era guidance that laid out federal priorities for marijuana enforcement. In a letter to the attorney general, the senator said his decision to revoke the so-called Cole memorandum “completely disregards the steps the state of Colorado has taken to regulate legal marijuana dispensaries and retail stores.”

In another letter, he asked the Senate Appropriations Committee to include language acknowledging the rights of states to legalize and regulate cannabis in light of the Cole memo rescission.

The annulment of the memo also prompted him to send a letter to the Financial Crimes Enforcement Network, asking the agency to maintain its 2014 guidance on banking access for the cannabis industry.

Following a report from BuzzFeed News that the Trump administration had established a task force meant to shore up negative data on marijuana, Bennet sent a letter to the head of the Office of National Drug Control Policy (ONDCP) expressing strong concern about the “intentional effort to mislead the American people.”

The ONDCP in turn pledged to “be completely objective and dispassionate” in its research gathering process.

Finally, the senator sent a letter to the U.S. Bureau of Reclamation in 2019 requesting that the department update its policies to ensure that hemp farmers are able to access federally controlled water.

Quotes And Social Media Posts

While Bennet has supported a fair share of marijuana bills, he hasn’t frequently talked about the issue—at least not compared to some of his Democratic presidential opponents. His Twitter and Facebook feeds mostly promote the many letters he’s signed regarding cannabis policy.

For example, it’s not clear why Bennet—who also served as the superintendent of Denver Public Schools as well as chief of staff to then-Denver Mayor (and now-presidential candidate) John Hickenlooper (D)—opposed Amendment 64, Colorado’s legalization initiative. Some media reports noted his opposition but not his reasoning. His name is listed on the archived homepage of the opposition campaign, and the senator appeared at a debate where the issue was being discussed ahead of the 2012 vote.

What the senator does like talking about, however, is hemp.

He pledged to fight for hemp legalization while touring a cultivation facility in March 2018.

In June 2018, he spoke on the Senate floor about the hemp legalization provision of the Farm Bill, emphasizing that “hemp was widely grown in the United States throughout the mid-1800s” and the crop was used “in fabrics, wine and paper” until it was listed as a controlled substance.

“In Colorado, as is true across the country—I have talked to a lot of colleagues about this—we see hemp as a great opportunity to diversity our farms and manufacture high-margin products for the American people,” he said. “This could help drive incomes in rural parts of my state like Montrose Country, Colorado.”

After the agriculture legislation was signed into law, Bennet penned an editorial for The Colorado Sun discussing what it means for the state.

“Now that we’ve passed the Farm Bill and the president has signed it into law, hemp cultivation is fully legal for the first time in 50 years,” he wrote. “That means less uncertainty and more opportunity for our hemp farmers, small businesses, and manufacturers.”

Learning more about hemp has “given me the opportunity to see more of our state’s boundless creativity, determination, and entrepreneurship,” he said.

Bennet also discussed the Senate passage of the legislation in a December 2018 floor speech.

“We see hemp as an opportunity to diversify our farms and manufacture high-margin products for the American people,” he said. “Now Coloradans will be able to grow and manufacture hemp without a cloud of uncertainty hanging over them.”

During a Senate Appropriations Committee hearing in February, Bennet told the head of the U.S. Department of Agriculture (USDA) that he looked forward to working with him on the development and implementation of hemp regulations.

More recently, as he was exploring a presidential bid at a stop in New Hampshire, Bennet discussed marijuana legalization, but it’s not clear what he said.

Personal Experience With Marijuana

It does not appear that Bennet has publicly commented about any personal experience related to marijuana.

Marijuana Under A Bennet Presidency

Bennet, like many of his fellow contenders, has evolved significantly on the issue of marijuana over recent years. While he was opposed to legalization in 2012, he’s at this point cosponsored some of the most far-reaching cannabis reform bills in Congress, and he’s had a consistent focus on issues like banking access for marijuana businesses and hemp development.

Passing federal marijuana legalization might not be a top priority under a Bennet administration, but his record indicates that legal cannabis states would likely be safe from interference while members of Congress move ahead with considering broader reform efforts.

Where Presidential Candidate Joe Biden Stands On Marijuana

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.

Politics

Marijuana Banking Bill Would Save Federal Money, Congressional Budget Office Says

Published

on

The federal government would save money if a bipartisan bill to give marijuana businesses access to banks is approved, according to a report released by the Congressional Budget Office (CBO) on Friday.

The legislation, which cleared the House Financial Services Committee in a bipartisan vote of 45 to 15 in March, would change federal law to protect financial institutions that service the cannabis industry from being penalized by regulators. That reform would set off a chain of events, beginning with a likely increase in the number of banks accepting deposits from those businesses, CBO reasoned.

Assuming the bill takes effect near the end of the 2019 fiscal year, the office estimates that starting in 2022, banks would see a $1.2 billion increase in deposits, and credit union deposits would grow by $200 million. By 2029, the amounts “would rise to $2.1 billion and $350 million, respectively.”

Because those deposits would have to be insured through the Federal Deposit Insurance Corporation (FDIC) and the National Credit Union Administration (NCUA), the CBO took into account the possibility that individual financial institutions will fail, and the estimated cost of resolving those failures is $5 million.

That said, those direct spending costs would be “offset by assessments levied on insured financial institutions,” which would amount to about $9 million.

“As a result, CBO estimates, H.R. 1595 would decrease net direct spending by $4 million over the 2019-2029 period,” the office reported.

Rep. Ed Perlmutter (D-CO), the bill’s chief sponsor, told Marijuana Moment that its enactment would have benefits beyond fiscal savings.

“Getting cash off our streets and making our communities safer will come at no cost to the federal government and actually save money while providing a much-needed long-term banking solution for legitimate marijuana businesses across the country,” he said.

Via CBO.

“This CBO score should only increase the significant momentum in Congress behind passing the SAFE Banking Act,” Neal Levine, CEO of the Cannabis Trade Federation, told Marijuana Moment. “It is now apparent that we can help diminish a serious threat to public safety at no net cost to the federal government. We look forward to the bill passing through the House and hope the Senate will follow suit.”

There are some implementation costs to take into account, CBO says. The administrative costs are estimated to be $3 million. But the FDIC and NCUA are able to charge premiums on the financial institutions they regulate to cover much of those costs. The total net administrative costs would, therefore, be about $1 million.

The Federal Reserve would also have to spend funds to implement the bill, and that would reduce remittances to the Treasury Department. Those remittances are considered revenue, which is expected to decrease by about $1 million if the legislation is implemented.

Then there are costs related to other provisions of the bill. Financial regulators would have to update and issue new guidance, which would “cost less than $500,000 over the 2019-2024 period.”

The legislation also requires the Government Accountability Office to study barriers to entry in the marijuana industry and to financial services for minority- and women-owned cannabis businesses. The costs are estimated to be less than $500,000 annually from 2020 to 2024.

The CBO also estimated that enacting the legislation “would not increase on-budget deficits by more than $5 billion in any of the four consecutive 10-year periods beginning in 2030.”

The CBO outlined “several noteworthy areas of uncertainty” that could change the calculus.

1. New guidance from federal financial regulators could be more or less stringent than existing guidance implemented under the Obama administration, which could impact the amount of deposits banks and credit unions will receive.

2. Data on cannabis-related deposits is currently “limited,” as federal restrictions have forced marijuana businesses to operate on a largely cash basis. That means CBO’s estimates on the amount of deposits financial institutions will see could end up being “greater or smaller.”

3. If those estimates do end up being different, costs associated with the bank and credit union insurance funds “could be higher or lower depending on the amount of premium collections and capital deposits and on changes in the resolution costs for financial institutions.”

Sahar Ayinehsazian, an associate attorney at Vicente Sederberg LLP who specializes in cannabis banking, told Marijuana Moment that most of the figures lined up with her expectations. However, given that many marijuana businesses have gravitated toward credit unions rather than banks, she said the estimate increase in deposits to those financial institutions may well end up being larger.

“Looking at the chances of this legislation passing from an economic standpoint, I think [the CBO score is] good news,” she said.

Other advocates agreed that the CBO estimate should help efforts to advance the bill.

“For years, cannabis advocates have been preaching the net benefits SAFE Banking would have on consumers, patients, financial institutions, regulators and taxpayers. This CBO cost estimate confirms that,” Michael Correia, director of government relations for the National Cannabis Industry Association, told Marijuana Moment. “The increase of insured deposits, coming from the added certainty this legislation brings, far outweighs the minor administrative costs to implement this bill.”

The House marijuana banking bill currently has 184 cosponsors, and a companion Senate version has 30 lawmakers signed on. The committee of jurisdiction in the upper chamber has not yet set a hearing or a vote, but pressure is increasing.

Banking associations from all 50 states urged the Senate to take up the legislation earlier this week. Other organizations that have called for a resolution to the cannabis banking dilemma include the National Association of Attorneys General, which has endorsed the bill, and the National Association of State Treasurers, representing state treasurers and finance officials, which adopted a resolution last week in favor of the legislation’s passage.

The new analysis is just the third time that the CBO, which is mandated to score bills that pass full committees, has issued a report on the economic impact of standalone cannabis legislation. The agency scored two marijuana research bills that cleared committees last year.

Federal Small Business Administration Pressed On Supporting Marijuana Industry

This story was updated to include comment from Perlmutter and Correia.

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.
Continue Reading

Politics

Federal Small Business Administration Pressed On Supporting Marijuana Industry

Published

on

Sen. Jacky Rosen (D-NV) pressed a federal official responsible for advocating for small businesses on Wednesday about whether existing laws and regulations are preventing the growth of state-legal marijuana markets.

The line of questioning comes as members of Congress are preparing legislation aimed at removing barriers to small business assistance for cannabis industry participants.

The senator said at a hearing of the Senate Small Business and Entrepreneurship Committee that her state’s legal industry is attracting small businesses and entrepreneurs who are selling millions of dollars of product each month. She asked Major Clark, acting chief counsel of the office of advocacy at the Small Business Administration (SBA), about the unique barriers these companies face under federal prohibition.

“Senator, that’s a difficult question,” Clark replied. “We have not actually studied the issue of marijuana in that regard, and we have not because the federal government has not yet legalized it.”

“We do, in conversations with a lot of businesses, get inquires as to what they can do and how they can do it. But to actually do an analysis of it, we have not yet done that,” he said. “I’m sure that as soon as the federal government decides to legalize this substance, we will begin to study its impact and the ability to use it in a more economical context within the state.”

Watch the conversation about small business assistance for cannabis operators at 35:50 in the video below:

Rosen followed up to get Clark’s opinion about whether marijuana companies would benefit from some of the guidelines and resources the SBA offers to small businesses in other industries.

“These types of businesses can benefit from some of these types of things, but again, because this issue is an issue that has not reached the surface of being legalized, we have actually stayed away from trying to advise these businesses on these particular aspects,” he said.

Sen. James Lankford (R-OK), chair of the committee, weighed in on the issue after the Rosen’s time expired, saying that he recognizes the difficulty that federal agencies face when it comes to regulating a controlled substance.

“It is a unique challenge dealing with a Schedule I drug on the federal side and to also know that some states, including my own, have said that they want to allow it,” Lankford said, referring to the medical cannabis law that Oklahoma voters approved in 2018. “And the federal government and the [Food and Drug Administration] continues to study it and say there’s no medicinal gain from this product.”

“It’s a Schedule I drug. I get it,” he said. “The science, and whether it is SBA or whoever it is continues to be able to deal with that.”

While lawmakers push to get marijuana businesses access to federally authorized financial services, industry advocates say that SBA-specific reform legislation may be on the horizon.

The day after Rosen questioned the SBA official about cannabis policy, Khurshid Khoja, a board member for the National Cannabis Industry Association, said at a press conference on Capitol Hill that a bill was being drafted to “essentially get SBA services for cannabis businesses and for cannabis businesses from disproportionately impacted communities.”

Watch the SBA reform discussion at about 32:15 in the video below:

“The House Small Business Committee is looking into the issue and is interested in holding a hearing and drafting legislation this summer that addresses these issues,” a cannabis policy lobbyist who didn’t wish to be named in order to discuss plans that are in development, told Marijuana Moment separately.

GOP Congressman Exposes Flaws In VA Marijuana Research Projects

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.
Continue Reading

Politics

GOP Congressman Exposes Flaws In VA Marijuana Research Projects

Published

on

Rep. Matt Gaetz (R-FL) emphasized the importance conducting clinical trials on medical marijuana at the U.S. Department of Veterans Affairs (VA) on Tuesday, a topic on which he has often focused.

He also criticized the catch-22 of VA cannabis research, arguing that while the department is able to conduct clinical trials on marijuana, it doesn’t effectively publicize those studies, leaving veterans who might be interested in participating in the dark.

The congressman started by asking whether Mike Colston, director of mental health policy and oversight at the Department of Defense, felt that giving veterans access to medical cannabis could reduce suicides.

Colston said “there’s far more research to be done” and that there’s “insufficient evidence for or against that position.”

Gaetz cited research showing reductions in opioid use in states that have loosened cannabis laws, and he questioned whether “the current offramp for opioid addiction,” which typically involves prescribing long-term opioids that are less potent and less prone to abuse, “is a more effective offramp than medical cannabis.”

“I just think those are the three evidence-based therapies right now that meet the medical bar,” Colston said, referring to bupenehprine, methadone and naltrexone. “Obviously more research can change that.”

That prompted Gaetz to expand on VA policy as it pertains to medical cannabis. He asked for confirmation that the department’s doctors cannot currently recommend marijuana to veterans in states where it’s legal.

They can’t do that because “there’s a federal law against it right now,” Keita Franklin, national director of suicide prevention at the VA, claimed. (This has been a point of contention for legalization advocates, who argue that only the VA’s own internal administrative policies, and not an overarching federal law, blocks such recommendations.)

But VA officials can conduct clinical trials on marijuana, Franklin said.

“We have two ongoing research studies going on right now in this space,” she said. “I think we are open to research, yes.”

The congressman wanted to know if the VA publishes information about these studies and where to find it. The VA official wasn’t sure—and that was exactly Gaetz’s point.

“I don’t think anyone is clear, which is the source of my frustration because I think that there are a lot of these clinical trials that are seeking veterans,” he said. “The VA, due to a lack of clarity, won’t publicize that information or make it available, and then we’re unable to do the research that Captain Colston says is necessary to advance additional options for veterans trying to get off opioids and to stop them from killing themselves.”

Lawmakers have introduced legislation this session that would allow VA doctors to issue medical cannabis recommendations and require the department to conduct clinical trials on the plant’s potential therapeutic benefits for veterans, among other cannabis and veterans-related bills.

But if the VA is mandated to research the plant, Gaetz wants the department to better publicize the studies so that would-be participants actually know about them.

Trump Official Would Rather Discuss Marijuana Than President’s Tax Returns, He Says

Photo courtesy of YouTube.

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.
Continue Reading
Advertisement

Stay Up To The Moment

Marijuana News In Your Inbox


Support Marijuana Moment

Marijuana News In Your Inbox