Drug War Chronicle #1130 - April 23, 2021

Will the SAFE Marijuana Banking Act Break Through to the Senate? [FEATURE]

For the second time in as many years, the House of Representatives passed the Secure and Fair Enforcement (SAFE) Banking Act (H.R. 1996) on Monday. The bill is designed to allow state-legal marijuana businesses access to banking and financial services. The bill would bar federal regulators from imposing civil or even criminal penalties on financial institutions that serve those businesses.

In an indication of broad political support for normalizing marijuana, the bill was approved on a bipartisan vote of a 321 to 101, with 91 Republicans and one Independent joining with the Democratic majority. It is not at all clear, however, whether any Republicans in the Senate can be persuaded to follow the lead of their House colleagues when they are presented with a chance to vote on companion legislation, S. 910, in the evenly-divided Senate.

Still, the measure is endorsed by a wide variety of groups, including the National Association of State Treasurers and governors from 21 states and territories.

The bill was authoredby US Rep. Ed Perlmutter (D-CO), who has been introducing it since 2013, sponsored by Reps. Nydia M. Velázquez (D-NY), Steve Stivers (R-OH), and Warren Davidson (R-OH), and cosponsored by 180 members.

"After years of bringing up this issue, I'm thrilled to see overwhelming support for this bipartisan, commonsense legislation in the US House once again. I feel optimistic about the path forward for the SAFE Banking Act and, more broadly, reforms to our federal cannabis laws," said Perlmutter in a statement after the vote.

"Congress needs to act in order to catch up with the will of the majority of voters across this county and to ensure we are reducing the public safety risk for our constituents and communities," he continued. "I look forward to working with [Senate cosponsors] Senators Merkley and Daines to get the SAFE Banking Act passed in the Senate and signed into law."

For years, state-legal marijuana businesses have been hampered by the lack of access to such business necessities as checking accounts, payroll accounts, and lines of credit because of the financial services industry's fear of running afoul of federal law enforcement. That has required a multi-billion-dollar industry to operate in cash, which poses obvious security problems, as well as depriving banks and other lending institutions access to that capital to invest it productively.

"This bill would finally allow business in states that have legalized cannabis to access to the banking system, just as any other business currently enjoy," said Velasquez. "Doing so will help create jobs in communities throughout America, while stimulating the economy as we recover from the fallout of the pandemic."

"This bill is not about being for or against marijuana, but rather being for the safety and wellbeing of our communities," said Stivers.

The Marijuana Policy Project (MPP) was pleased with the vote.

"This vote marks a meaningful first step in establishing a more equitable cannabis industry and improves the likelihood that other cannabis legislation will advance at the federal level," MPP executive director Steve Hawkins said in a statement.

"Restricting cannabis businesses from accessing financial services creates an unnecessary burden for the industry and limits economic growth," Hawkins added. "If enacted into law, the SAFE Banking Act would strengthen efforts to increase the diversity of the cannabis industry by providing resources for those with limited access to capital and increasing the chances of success for state-level social equity initiatives. Further, it would protect the 321,000 employees directly affected by the cannabis industry's lack of access to financial services."

Now it is up to the Senate. Majority Leader Chuck Schumer (D-NY) is working with Sens. Cory Booker (D-NJ) and Ron Wyden (D-OR) on a full marijuana legalization bill, and there are indications he is concerned that passing more modest reforms before that could undermine that push. But there is also considerable pressure to move on the SAFE Banking Act. Stay tuned.

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Medical Marijuana Update

The Veterans Medical Marijuana Safe Harbor Act gets refiled, a move to block the legalization of any illicit drug in Idaho gets quashed as lawmakers cite the popularity of medical marijuana, and more.

National

Bipartisan Bill to Legalize Medical Marijuana for Military Vets Filed in Congress. A bill that would federally legalize medical marijuana for veterans was refiled in Congress Thursday. Reps. Barbara Lee (D-CA) and Dave Joyce (R-OH), both co-chairs of the Congressional Cannabis Caucus, and nine other original cosponsors filed the Veterans Medical Marijuana Safe Harbor Act on the House side, while in the Senate, Sen. Brian Schatz (D-HI) is leading the proposal, and he's joined by five other lawmakers, including Sen. Bernie Sanders (I-VT). The bill would allow vets in states with legal medical marijuana programs to use it with a physician's recommendation, and it would allow doctors at Department of Veterans Affairs to make such recommendations.

Idaho

Idaho House Kills Bill That Would Have Blocked Medical Marijuana. The House on Thursday defeated a proposed constitutional amendment that would have blocked the state from ever legalizing any illicit drug by requiring a two-thirds vote of both the House and Senate to do so. House Joint Resolution 4 failed after a half-dozen House Republicans voted against it saying Idahoans want medical marijuana.

Iowa

Iowa Lawsuit Challenges Governor's Delay in Seeking Federal Exemption for Medical Marijuana. Veteran activist Carl Olsen has filed a lawsuit against Governor Kim Reynolds (R) after she has failed to move forward with an effort to win an exemption from federal drug laws. The legislature passed and Reynolds signed a bill to do that last year but has failed to act. The lawsuit is an attempt to prod her to move on it.

Louisiana

Louisiana Bill to Allow Smokable Medical Marijuana Advances. A bill to allow and tax smokable marijuana for medical marijuana patients, House Bill 514, passed the House Ways and Means Committee unanimously last Friday. The measure would apply the state's 4.45% sales tax to such products. The bill is now ready for a House floor vote.

Tennessee

Tennessee Medical Marijuana Bill Wins Committee Vote. A bill to allow for the use of medical marijuana, Senate Bill 667, was approved by the Senate Judiciary Committee Thursday and now heads for the Senate Calendar Committee. Companion legislation, House Bill 880, is also moving, having passed out of one House Health subcommittee and scheduled for a House Health Committee vote net week.

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This Week's Corrupt Cops Stories

A sticky-fingered, pill-popping North Carolina police chief goes down, a Baton Rouge narcotics cop already under indictment for corruption gets another charge, and more. Let's get to it:

In Philadelphia, a Philadelphia police officer was arrested last Wednesday for allegedly lying under oath about observing two Latino men engaging in a drug deal and arresting one of them with no legal justification. Officer James Saxton, 34, now faces charges of perjury, unsworn falsification (for lying on the arrest report), and official oppression.

In Baton Rouge, Louisiana, a Baton Rouge police officer was arrested last Wednesday for the second time in two months. Corporal Jason Acree, a 12-year veteran of the force, was first arrested in February on charges of possession with intent to distribute Schedule I narcotics and official malfeasance as part of a broader takedown of corrupt Baton Rouge narcotics cops. He is now charged also with obstruction of justice.

In Phenix City, Alabama, a Russell County jail guard was arrested last Friday for allegedly smuggling marijuana and other contraband into the jail. Guard Alicia Laury went down after the sheriff's office got information that one of the jailers was in an inappropriate relationship with an inmate and smuggling contraband for him. After being confronted, Laury admitted smuggling a pair of cell phone on one occasion and marijuana, tobacco, and rolling papers on another. She is charged with promoting prison contraband in the second degree, which is a class C felony.

In Chadbourn, North Carolina, the recently-resigned former chief of police was arrested Monday for allegedly stealing drugs, cash, and firearms from the department evidence locker. Former Chief William Anthony Spivey, 35, had resigned two weeks ago amid an investigation into the missing evidence. Spivey went down after the district attorney notified that town manager that the department had not submitted any drug evidence for months, and the ensuing investigation pointed toward him. Among the items reported missing from the evidence room were more than $32,000 in cash, two handguns and a rifle, 367 doses of Xanax and varying amounts of hydrocodone, Oxycontin and methadone. Spivey faces 73 charges, including 31 counts each of stealing or destroying evidence and embezzlement by a public official, as well as trafficking heroin or opium and three counts of trafficking by fraudulent or forging prescriptions.

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MedMJ for Vets Bill in Congress, Pfizer Donating One Million Naloxone Doses, More... (4/16/21)

A medical marijuana bill moves in Tennessee, Idaho lawmakers defeat an anti-drug legalization constitutional amendment, and more.

Medical Marijuana

Bipartisan Bill to Legalize Medical Marijuana for Military Vets Filed in Congress. A bill that would federally legalize medical marijuana for veterans was refiled in Congress Thursday. Reps. Barbara lee (D-CA) and Dave Joyce (R-OH), both co-chairs of the Congressional Cannabis Caucus, and nine other original cosponsors filed the Veterans Medical Marijuana Safe Harbor Act on the House side, while in the Senate, Sen. Brian Schatz (D-HI) is leading the proposal, and he's joined by five other lawmakers, including Sen. Bernie Sanders (I-VT). The bill would allow vets in states with legal medical marijuana programs to use it with a physician's recommendation, and it would allow doctors at Department of Veterans Affairs to make such recommendations.

Idaho House Kills Bill That Would Have Blocked Medical Marijuana. The House on Thursday defeated a proposed constitutional amendment that would have blocked the state from ever legalizing any illicit drug by requiring a two-thirds vote of both the House and Senate to do so. House Joint Resolution 4 failed after a half-dozen House Republicans voted against it saying Idahoans want medical marijuana.

Tennessee Medical Marijuana Bill Wins Committee Vote. A bill to allow for the use of medical marijuana, Senate Bill 667, was approved by the Senate Judiciary Committee Thursday and now heads for the Senate Calendar Committee. Companion legislation, House Bill 880, is also moving, having passed out of one House Health subcommittee and scheduled for a House Health Committee vote net week.

Harm Reduction

Pfizer to Donate One Million Doses of Naloxone in a Bid to Blunt Overdose Deaths. Responding to a record number of drug overdose deaths in the United States, Pfizer has made a commitment to Direct Relief to donate 1 million doses of the drug naloxone, which saves lives by reversing opioid overdoses.The newly committed 1 million doses are in addition to the more than 1 million doses Pfizer has donated since 2017, which Direct Relief has distributed at no cost to nonprofit, community-based organizations across the United States. Deaths and emergency room visits from opioid overdoses have accelerated during the COVID-19 pandemic. According to preliminary data released Wednesday by the Centers for Disease Control and Prevention, over 87,000 drug overdose deaths occurred in the United States in the 12 months ending in September 2020 -- the highest number of deaths ever recorded in a 12-month period.

Drug Policy

Washington Senate Approves Bill to Make Drug Possession a Misdemeanor. The Senate voted Thursday to approve Senate Bill 5476, which would make drug possession a misdemeanor. The bill comes after the state Supreme Court threw out the state's felony drug possession law, leaving drug possession decriminalized. Some legislators argued for decriminalizing drug possession; others argued for refelonizing it but making it a misdemeanor is what the Senate passed.

International

Canada Opposition MP Files Drug Decriminalization Bill. New Democratic Party Member of Parliament Don Davies, who also serves as the party's health critic, has filed a private member's bill to remove provisions criminalizing drug possession from the Criminal Code. "Decades of criminalization, a toxic illicit street supply and a lack of timely access to harm reduction, treatment and recovery services have caused this ongoing catastrophe. It's time to treat substance use and addiction as the health issues they truly are," he said at a news conference. A Liberal bill to reform drug laws filed in February doesn't go far enough, Davies said.

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SAFE Banking Act House Floor Vote Today, Texas Governor Wants Cartel Terrorist Designation, More... (4/19/21)

Another poll reaffirms marijuana legalization's popularity, the push for legalization in Connecticut has hit a roadblock over social equity, a bill to allow smokable medical marijuana advances in Louisiana, and more.

Marijuana Policy

New Pew Poll Has Nine Out of Ten Americans Supporting Some Form of Marijuana Legalization. A new Pew poll has 91% of Americans in favor of legalizing either recreational marijuana or medical marijuana or both. Sixty percent favored legalizing both, while another 31% said they supported legalizing only medical marijuana.

House to Vote on Marijuana Banking Bill Today. House Majority Leader Stony Hoyer (D-MD) has confirmed that the Secure and Fair Enforcement (SAFE) Banking Act, House Resolution 1996, will get a House floor vote on Monday. This will be the first floor action on any marijuana-related legislation this session.

Connecticut Marijuana Legalization Hits Roadblock Over Social Equity. Efforts to legalize marijuana this year are in danger after Gov. Ned Lamont (D) and key lawmakers reached an impasse over social equity provisions that the legislators say Lamont's bill is lacking. They said last week they could not support Lamont's bill without stronger social equity provisions. Lamont, for his part, appears ready to wait until next year if necessary. "I think [legalization is] in the best interest of public health and I don't want to surrender this to the underground market and I don't want to surrender it to outside markets. That said, if you get a bill that you think doesn't meet some basic requirements, you'll put it off another year just like they have for many years in the past. You can't let the perfect be the enemy of the good," he said Friday.

Wisconsin GOP Senate Leader Rules Out Action on Marijuana Legalization. Senate Majority Leader Devin LeMahieu (R-Oostburg) said last Thursday that the Republican-controlled state legislature will not legalize recreational or medical marijuana. "We don't have support from the caucus. That's pretty clear, that we don't have 17 votes in the caucus for medicinal purposes or recreational purposes [to] legalize it," LeMahieu said. He added that states should not pass laws that are "in conflict with the federal government."

Medical Marijuana

Louisiana Bill to Allow Smokable Medical Marijuana Advances. A bill to allow and tax smokable marijuana for medical marijuana patients, House Bill 514, passed the House Ways and Means Committee unanimously last Friday. The measure would apply the state's 4.45% sales tax to such products. The bill is now ready for a House floor vote.

Foreign Policy

Texas Governor Demands Biden Add Cartels to Terrorist List but Didn't Demand the Same of Trump. Governor Greg Abbott (R) has accused the Biden administration of just "standing by" as Mexican cartels "terrorize" South Texas and is demanding that President Biden add the cartels to the State Department's list of foreign terrorist organizations. In doing so, he cited the November 2019 killing of nine US citizens in a cartel attack in northern Mexico, which occurred during the Trump presidency. Abbott never made any such demand of Trump, nor did he complain when Trump, who had threatened such a move, backed down under pressure from Mexico.

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House Passes SAFE Banking Act, NJ AG Says No Mandatory Minimums for Nonviolent Drug Crimes, More... (4/20/21)

Dallas police will no longer arrest people possessing small amounts of pot, a North Carolina bill seeks to restrict needle exchange programs, and hemp is now legal in all 50 states.

Marijuana Policy

House Passes Marijuana Banking Bill (Again). The House on Tuesday approved the SAFE Banking Act (House Resolution 1996), which would allow state-legal marijuana businesses to access banking and other financial services. The House also passed the bill last session, but it went nowhere in the then Republican-led Senate.

Alabama Democratic Party Endorses Marijuana Legalization. The state Democratic Party announced Tuesday that it supports the legalization of both medical and recreational marijuana in the state. "Nearly 100 years of marijuana prohibition and criminalization has trapped thousands of Alabamians, mostly Black, in our broken criminal justice system," said state Rep. Chris England (D-Tuscaloosa). "Reforming policy surrounding cannabis not only serves our state in producing hundreds of millions of dollars in revenues, but is an important step in reducing arrests and expunging records. Nobody should be sitting in jail for carrying a little bit of weed."

Dallas Cops Will Finally Stop Charging People for Small Amounts of Pot. Dallas Police Chief Eddie Garcia has ordered his officers to stop charging people found with small amounts of marijuana. Garcia revealed the policy change in a memo to the City Council last Friday. Under the new policy, people will be arrested only if they possess more than two ounces or if there is evidence of sales. Those caught with between two and four ounces will be ticketed, but not jailed.

Medical Marijuana

Iowa Lawsuit Challenges Governor's Delay in Seeking Federal Exemption for Medical Marijuana. Veteran activist Carlo Olsen has filed a lawsuit against Governor Kim Reynolds (R) after she has failed to move forward with an effort to win an exemption from federal drug laws. The legislature passed and Reynolds signed a bill to do that last year but has failed to act. The lawsuit is an attempt to prod her to move on it.

Hemp

With Idaho Governor's Signature on Hemp Bill, Hemp is Now Legal in All 50 States. Gov. Brad Little (R) last Friday signed into law House Bill 126, which legalizes industrial hemp production in the state. Idaho was the last state to legalize hemp after it was federally legalized in 2018.

Harm Reduction

North Carolina NIMBY Bill Would Hamper Needle Exchanges. Spurred by an Asheville neighborhood group that has tried for years to put restrictions on an Asheville needle exchange program, friendly lawmakers have filed Senate Bill 607, which would ban mobile needle exchanges and require engraved needles, background checks, and forced drug treatment. The bill is currently before the Senate Rules and Operations Committee.

Sentencing

New Jersey Attorney General Orders End to Mandatory Minimum Prosecutions in Noviiolent Drug Cases. Calling mandatory minimum sentencing "outdated policy," state Attorney General Gurbir Grewal issued a directive Monday telling prosecutors not to seek such sentences in nonviolent drug cases. Democratic Gov. Phil Murphy applauded the new directive in a statement. The policy change means that mandatory minimums are "off the table" in current and future nonviolent drug cases. It also allows people currently serving mandatory minimums for such offenses to seek early release.

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Biden Won't Commit On Marijuana Legalization Bill, Alabama Forfeiture Reform Advances, More... (4/21/21)

Asset forfeiture reform stalls in Hawaii but advances in Alabama, the Denver city council votes to approve marijuana deliveries and consumption lounges, and more.

Marijuana Policy

Biden Won't Commit to Sign Marijuana Legalization Bill If Passed by Congress, Press Secretary Says. President Biden's stance toward a forthcoming marijuana legalization bill is noncommittal, White House Press Secretary Jen Psaki said Tuesday. She declined to say whether he would sign or veto such a bill. "The president supports leaving decisions regarding legalization for recreational use up to the states, rescheduling cannabis as a Schedule II drug so researchers can study its positive and negative impacts and, at the federal level, he supports decriminalizing marijuana use and automatically expunging any prior criminal records," she said. "He also supports legalizing medicinal marijuana so that's his point of view on the issue." When pressed, Psaki added: "He'll look at the research once that's concluded. Of course we understand the movement that's happening toward it. I'm speaking for what his position is and what long, consistently has been his position. He wants to decriminalize, but again, he'll look at the research of the positive and negative impacts."

Denver to Get Marijuana Deliveries and Consumption Lounges. The city council voted Monday night to allow marijuana deliveries and consumption lounges, and Mayor Michael Hancock says he supports the move. Once signed into law, some of the changes could go into effect immediately, but it could take a few months to get delivery services up and running.

Asset Forfeiture

Alabama Senate Approves Asset Forfeiture Reform Bill. The state Senate on Tuesday voted unanimously to approve a bill that reforms but does not end civil asset forfeiture, Senate Bill 210. The bill, passed with support from prosecutors and law enforcement, would bar the seizure of less than $250 in cash or cars worth less than $5,000, require a finding of probable cause before a forfeiture can occur, require a post-seizure seizure order for property seized without a warrant, bar law enforcement from inducing or requiring a person to waive his interest in a property, and prohibit "disproportionate" seizures. The bill now heads to the House.

Hawaii Asset Forfeiture Reform Effort Fails. A move to reform asset forfeiture procedures and eliminate civil asset forfeiture, Senate Bill 294, has stalled amid disagreements between House and Senate legislators. Under the bill, property cold still be seized without a conviction, but not sell it. House leadership was demanding that the entire section on civil asset forfeiture reform be removed, leading Senate Judiciary Committee Chairman Sen. Karl Rhoads to say: "The House's position on this issue has changed fairly substantially. I think I still have a very difficult time with the fundamental fairness of having someone's property taken away in a criminal context when they haven't been convicted of anything. "I don't see a way forward."

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VA Governor Signs Marijuana Legalization Into Law, IL House Approves Drug Defelonization Bill, More... (4/22/21)

The House votes to temporarily keep fentanyl analogues in Schedule I, the Minnesota pot legalization bill wins an eighth (!) committee vote, and more.

Marijuana Policy

Minnesota Marijuana Legalization Bill Wins Eighth House Committee Vote. A bill to legalize marijuana, House File 600, won its eighth committee vote Thursday, advancing out of the House Education Finance Committee on an 8-6 vote. It still has at least one more committee to clear before heading for a House Floor vote. It now goes to the House Public Safety and Criminal Justice Reform Finance and Policy Committee.

North Carolina Marijuana Legalization Bill Filed. Four House members have filed a bill to legalize marijuana, House Bill 617. "We all know someone or have a constituent that has contacted House Member's offices for help with a relative or friend being jailed for possession of small amounts of marijuana," Rep. Pricey Harrison said. "We took great care in writing this bill to include items to encourage bipartisan support. This bill will ensure appropriate guidelines and restrictions." The bill includes a provision allowing up to 12 plants for personal cultivation.

Virginia Governor Signs Marijuana Legalization Into Law. Marijuana will become legal on July1 after Gov. Ralph Northam (D) signed the bill into law. People will be allowed to possess up an ounce of pot and can grow up to four plants at home. Legal sales will follow once rules and regulations are established.

Birmingham, Alabama, to Issue Blanket Pardons for 15,000 Marijuana Convictions. Mayor Randall Woodfin announced Tuesday that the city will issue blanket pardons for some 15,000 people with misdemeanor pot convictions dating back to 1990. The pardons will be automatic, he said, adding that the move would help people rejoin the work force.

Medical Marijuana

Louisiana Bill to Allow Smokable Medical Marijuana Advances. The House Health and Welfare Committee voted 12-1 Thursday to advance House Bill 391, which would allow medical marijuana patients to smoke their medicine. Louisiana's dispensaries sell medical marijuana in liquids, topical applications, inhalers and edible gummies. But they are barred from offering raw marijuana in smokable form. The proposal heads next to the full House for debate and a vote.

Drug Policy

House Votes to Approve Temporarily Keeping Fentanyl Analogues in Schedule I. With a voice vote, the House on Wednesday approved an extension of an emergency designation that places fentanyl-like substances in Schedule I of the Controlled Substances Act. The emergency designation is set to expire May 6. In both the House and Senate, there are various bills extend the scheduling of fentanyl analogues for varying lengths of time. This vote gives legislators some time to reach a more permanent agreement. Organizations have criticized the designation as effectively extending the use of mandatory minimum sentencing -- which President Biden has said should be abolished -- and circumventing the science-based process intended to be used in drug scheduling.

Drug Testing

Michigan Senate Approves Bill to Ban "Drug Masking" to Defeat Drug Tests. The state Senate on Wednesday approved Senate Bill 134, which would criminalize using someone else's urine or taking a pill or vitamin to mask the presence of drugs in one's system. The bill makes the offense a misdemeanor punishable by up to a year in jail.

Sentencing

Illinois House Approves Bill to Defelonize Drug Possession. The House on Wednesday approved a bill that would turn drug possession felonies into misdemeanors, House Bill 3447. "This approach not only strengthens communities across Illinois but addresses fundamental problems in our criminal legal system, rejecting decades of failed policy under the moniker of the War on Drugs," said Ben Ruddell, criminal justice policy director with the ACLU of Illinois. "We know that taking a proven public health approach to reducing harms associated with drug use will benefit everyone in the State of Illinois."

International

Lebanese Farmers Turn to Hash Amidst Economic Crisis. Buffeted not only by the coronavirus pandemic but also by the country's deep economic crisis, farmers who for years grew potatoes and other crops are now turning to hashish. "It's not for the love of hashish", explained one farmer. "It's just less expensive than other crops... and allows you to live with dignity."

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