Today, 33 states and the District of Columbia have enacted laws allowing for either medical or adult-use cannabis. An additional 14 states allow for limited medical use. But under current law, financial institutions providing banking services to legitimate and licensed cannabis businesses under state laws are subject to criminal prosecution under several federal statutes, such as "aiding and abetting" a federal crime and money laundering.
In March, Rep. Ed Perlmutter (D-CO) introduced the Secure and Fair Enforcement (SAFE) Banking Act (HR 1595) to address this discord between state and federal policy. This bipartisan legislation recently hit 200 cosponsors in the House, and a House floor vote is expected soon.
Please email your U.S. Representative to urge them to support the SAFE Banking Act! If your rep is already a cosponsor, you can thank them for their leadership on the issue.
This legislation would prevent federal regulators from punishing financial institutions for providing services to cannabis-related businesses operating in compliance with state laws. While some cannabis businesses have been able to find banking services, most banks are unwilling to work with them because they fear federal prosecution. As a result, many cannabis businesses are forced to operate entirely in cash.
Solving the banking issue would promote public health and safety, as access to banking would ensure broader patient access, help with business transparency and compliance, and reduce safety risks associated with running high-volume, cash-only businesses. In addition, the legislation would make it easier for financial institutions to provide loans to cannabis-related businesses, allowing those with the least access to capital — often minorities — to participate in the new legal cannabis industry.
Please contact your U.S. Representative in support of this bill TODAY, then share this link with friends and family who support sensible cannabis policies so they can do the same.
Earlier today, Sens. Cory Gardner (R-CO) and Elizabeth Warren (D-MA) introduced bipartisan legislation to end the federal government’s war on marijuana and protect states’ rights to enact their own marijuana policies.
The STATES Act is the most significant piece of marijuana-related legislation ever introduced in Congress. With its bipartisan backing in the Senate, it symbolically signals the eventual end of marijuana prohibition at the federal level.
This legislation reflects the position the president took on marijuana policy during his campaign, and it comes shortly on the heels of the positive comments he made to Sen. Gardner. The president has a unique opportunity to get behind historic legislation that enjoys solid support on both sides of the political spectrum. Read more about the bill.
Members of both parties agree it’s time for the federal government to let states set their own policies for marijuana. Please ask your lawmakers to back this important legislation.
After a government shutdown lasting only a few hours, Congress passed yet another temporary spending bill on Friday that will keep medical marijuana patients and providers safe for a little while longer. The bill includes the amendments that has been part of the spending budget since 2014, which prevents the Department of Justice from spending resources to prosecute people or businesses that are in compliance with state laws. This deal is set to expire on March 23.
Congress will need to pass another spending bill before then in order to continue keeping state medical marijuana programs safe. In the event of a government shutdown, there will be nothing to stop federal prosecutors from targeting medical marijuana programs around the country.
However, supportive lawmakers are using the temporary reprieves to push for even more comprehensive protections, including amendments that would extend protections to businesses in the adult-use market.
On Friday, Massachusetts Gov. Charlie Baker reinforced that Massachusetts will respect the will of Massachusetts voters. In response to Jeff Sessions’ decision to rescind Obama-era rules that protected state-legal marijuana markets, state and local law enforcement officials vowed that they would not raid retail marijuana establishments that were operating in compliance with state law.
Shortly thereafter, Gov. Baker echoed those sentiments, stating, “We have two laws in Massachusetts: One that was passed by voters several years ago around the establishment of medical marijuana dispensaries, which are regulated and overseen by the commonwealth, and another law that was passed by the voters in 2016 that requires the state to create a legal infrastructure for recreational marijuana. Those are the laws that state and local law enforcement officials are bound to uphold and that’s what they’re going to do.”
Baker’s statement is important because it represents a sharp break from Massachusetts U.S. Attorney Andrew Lelling who said in a statement he couldn’t guarantee that medical marijuana dispensaries, recreational pot shops, cultivators, and customers would be immune from federal prosecution. We applaud Gov. Baker’s statement and his principled stance against Lelling’s regressive direction on legal cannabis that attempts to flout the will of the voters.
In a memo to federal prosecutors dated January 4, Sessions said, “In deciding which marijuana activities to prosecute under these laws with the Department’s finite resources, prosecutors should follow the well-established principles that govern all federal prosecutions. …. Given the Department’s well-established general principles, previous nationwide guidance specific to marijuana enforcement is unnecessary and is rescinded, effective immediately.”
From August 2013 until yesterday, the Department of Justice policy had been not to enforce federal marijuana laws against individuals or businesses in states that are complying with state medical or adult-use marijuana laws, provided that one of eight federal priorities is not implicated. A Department of Justice task force subcommittee on marijuana policy recommended in August that the policy described in the 2013 Cole memo be maintained going forward.
MPP's Matthew Schweich made the following statement in a press release:
This extremely misguided action will enable a federal crackdown on states' rights with regard to marijuana policy. Attorney General Sessions has decided to use the power of the federal government to attack the ability of states to decide their own laws. A majority of Americans support legalization, and Sessions has simply decided to ignore their views. In the states where marijuana is legal, voters approved those legalization policies at the ballot box. This is a direct attack on the will of the people.
This decision may very well lead to federal agents raiding licensed, regulated, and tax-paying businesses — these businesses are employing thousands of Americans and generating hundreds of millions of dollars in tax revenue for public services including substance abuse treatment programs and new school construction. MPP will be pushing Congress to pass legislation this year that establishes marijuana policy as a states' rights issue and prevents federal interference.
PNC Bank notified MPP that it would be closing our accounts on July 7. The bank cited federal prohibition and the fact that some of our donors are involved in legal, regulated marijuana businesses as the reason for closing the accounts.
CNN Money reports:
The organization does not deal directly with the sale or distribution of marijuana, Tvert said. But the 22-year-old lobby group does receive money from state-legal marijuana businesses that pay taxes.
Marijuana remains illegal in the eyes of the federal government, though medical marijuana is legal in 29 states and recreational pot is legal in eight states and the District of Columbia. Banks are supposed to adhere to federal law, so many of them shun state-legal marijuana businesses, forcing some of those businesses to deal in cash.
[MPP's Mason] Tvert said he wonders why a bank would have a problem dealing with an organization that receives money from marijuana businesses when those businesses pay taxes.
"We receive contributions from state regulated marijuana businesses ... that are paying taxes," he said. "Yet we don't see anyone shutting down the federal government's bank account or state or local governments' bank accounts. We have moved so far toward legitimizing this industry yet we are still seeing these kinds of ridiculous situations that need to be addressed."
MPP has secured alternative banking options and will be moving forward with our efforts to end marijuana prohibition.
The Justice Department will continue to be prohibited from interfering in state medical marijuana laws under the federal spending bill passed Thursday in the Senate. The bill has already passed the House, and President Trump has said he will sign it.
The legislation includes a provision that is intended to prevent the department, including the Drug Enforcement Administration, from using funds to arrest or prosecute patients, caregivers, and businesses that are acting in compliance with state medical marijuana laws.
The provision stems from an amendment originally sponsored by Rep. Dana Rohrabacher (R-CA) and former Rep. Sam Farr (D-CA), which was first approved by the House in May 2014. It was approved again by a larger margin in June 2015, then included in the continuing appropriations packages that have funded the federal government since October 2016.
Unfortunately, the spending package approved Thursday also includes a provision that prevents the District of Columbia from regulating the cultivation and distribution of marijuana for adult use. It was originally introduced by Rep. Andy Harris (R-Maryland) and approved in 2015, after District voters approved a ballot initiative to make possession and cultivation of limited amounts of marijuana legal for adults 21 years of age and older.
MPP's Robert Capecchi released the following statement:
“Congress appears to be growing increasingly comfortable with states adopting their own marijuana policies,” said Robert Capecchi, director of federal policies for the Marijuana Policy Project. “Unfortunately, spending prohibitions like these expire at the end of the fiscal year, so there is still a need for a long-term solution.
“The time is right for Congress to adopt permanent legislation that protects individuals from federal enforcement if they are in compliance with state laws,” Capecchi said. “It is difficult to understand what they’re waiting for. The vast majority of U.S. voters oppose the federal government interfering in state marijuana laws, and there is now near-universal support for legalizing medical marijuana.”
Republican Congressman Dana Rohrabacher of California introduced legislation in the U.S. House of Representatives on Tuesday that would resolve the conflict between state and federal marijuana laws and allow states to determine their own marijuana policies.
The Respect State Marijuana Laws Act exempts individuals and entities from certain provisions of the Controlled Substances Act if they are acting in compliance with state marijuana laws. This is the third time Rohrabacher has introduced the bill. Twenty of his colleagues in the House, including seven Republicans, co-sponsored the Respect State Marijuana Laws Act of 2015, which was introduced in the 114th Congress.
“The call for federal marijuana policy reform is growing louder and louder,” said Don Murphy, MPP director of conservative outreach. “Congress needs to listen to their constituents and to state lawmakers, most of whom agree marijuana policy is an issue best left to the states. This is a bipartisan solution that ought to find support on both sides of the aisle.”
On the same night that voters in eight states were approving marijuana policy reform initiatives, Donald Trump was on his way to being elected the next President of the United States. While this divisive election has left some people jubilant and others outraged, many are wondering what a Trump presidency will mean for the future of marijuana policy reform efforts as well as the progress we have made so far.
While it is difficult to tell what will happen in the next administration, MPP is hopeful that the current federal policy of not targeting people and businesses in compliance with state marijuana laws will continue in the next administration.
Some things to consider:
-A clear majority of Americans think marijuana should be legal for adults, according to recent Pew Research Center and Gallup polls. Additionally, a clear majority of Americans think the federal government “should not” enforce federal marijuana laws in states that allow legal adult use, according to a March, 2015, Pew poll.
-Roughly 21% of the population now live in states where marijuana is legal for adults, and 62% live in states with effective medical marijuana laws.
-More people voted for marijuana initiatives than voted for Trump and other prominent politicians in several states.
-Even if Trump appoints someone who is against marijuana policy reform to head the Department of Justice, it would cost significant resources for federal law enforcement to start targeting state-legal marijuana businesses.
-U.S. Attorneys have significant discretion regarding how they prioritize enforcement of federal laws.
-The political consequences of ripping the marijuana market away from legitimate, tax-paying businesses and handing it right back to dangerous criminals would be severe.
-The number of Members of Congress who represent states with medical or adult-use marijuana laws is about to drastically increase, bringing us closer to Congressional support for ending federal prohibition regardless of the administration's position.
-During the campaign, Trump made several statements in support of medical marijuana and allowing states to determine their own marijuana policies, even though he does not support regulating marijuana for adult use.
No matter what happens, MPP and our allies will continue to work diligently toward changing both state and federal marijuana laws. Please make sure to contact your lawmakers and ask them to help us end the government's war on marijuana.
Early this week, the Brookings Institution released a report titled 'Ending the U.S. government's war on medical marijuana research', which analyzes the ways in which the federal government hinders effective research, and how these policies could be changed.
The federal government is stifling medical research in a rapidly transforming area of public policy that has consequences for public health and public safety. As medical marijuana becomes increasingly accessible in state-regulated, legal markets, and as others self-medicate in jurisdictions that do not allow the medical use of cannabis, it is increasingly important that the scientific community conduct research on this substance. However, statutory, regulatory, bureaucratic, and cultural barriers have paralyzed science and threatened the integrity of research freedom in this area. It is time for the federal government to recognize the serious public policy risks born from limited medical, public health, and pharmaceutical research into cannabis and its use.
You can read the full report here.