United States: new Congress considers first cannabis bill

The new U.S. Congress (the 116th), which has had a Democratic majority since the general elections last November, should soon vote on an initial bill addressing the contradictions between legalization in certain states and federal prohibition. This proposal concerns access to financial services for the cannabis industry and marks the beginning of cannabis policy reform by the new Congress.

An initial bill

The proposal, titled the Secure and Fair Enforcement Banking Act or SAFE Banking Act, has just been approved by a vote of 45 to 15 by the House of Representatives Finance Committee and will soon be presented to the full House. It aims to protect financial institutions from federal regulators. Under federal prohibition—and despite state laws—these regulators can impose sanctions on institutions that agree to provide services to legal cannabis businesses.

«This proposal addresses an urgent public safety issue for legitimate businesses that currently have no other option but to operate on a cash basis,» explains Finance Committee Chair Maxine Waters. Amendments regarding overseeing equal access to these services Measures to support the communities and minorities most affected by the war on drugs and to expand protection for insurance companies were approved by the committee.

Legally authorized cannabis businesses are forced to operate on a cash-only basis, which sometimes makes them targets for violent criminals. #HR1595, the #SAFEBankingAct will address this issue by establishing a safe harbor that allows banks and credit unions to provide services to these businesses.

— U.S. House Committee on Financial Services (@FSCDems) March 27, 2019

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NORML’s policy director, Justin Strekal, welcomed the committee’s vote: «This is a positive step toward addressing the untenable tension between legal state cannabis markets and federal prohibition.» He noted, however, that Congress must take further action: «Banking issues are just a symptom of the cruel and toxic policy of cannabis criminalization. To bring the promising cannabis economy out of the shadows, action must be taken in Congress to end federal prohibition and the discrimination that stems from this failed policy.».

The SAFE Banking Act It has 152 co-sponsors—more than one-third of the House of Representatives—including 12 Republicans. This is more support than any previous legislative proposal to legalize cannabis has ever received. It will soon be introduced in the Senate by Democrats Jeff Merkley and Cory Gardner and brought to a floor vote in the House of Representatives. A similar bill introduced during the previous Congress had garnered only 20 co-sponsors and was never debated or voted on. Could the broad bipartisan support surrounding this initiative be a sign that reform is underway in the United States?

Is It Time for Reform?

Last year, far less ambitious bills had been approved by certain committees but were never debated in plenary session. This is the case with‘a proposal which encouraged the Department of Veterans Affairs to study medical cannabis, and a proposal that called on the Department of Justice to’grant additional cultivation licenses for cannabis research. The SAFE Banking Act is only the third cannabis bill to be approved by a congressional committee, but that is likely to change quickly.

In fact, some people see the SAFE Banking Act as the first step toward a much broader reform of federal cannabis laws. Democrat Earl Blumenauer, the sponsor of several legalization initiatives, had even published a memo outlining, step by step, the process of ending prohibition under the new Congress. The presidential candidates have also taken up the topic. It is very likely that other liberalization initiatives will be discussed soon, including the STATES Act and the Equal Access for Veterans for access to medical cannabis for U.S. veterans.

This is a good start toward our goal of legalization, but it's just the beginning. We will continue to work to ensure that all marijuana-related bills are considered during this Congress. The STATES Act, Veterans Equal Access, decriminalization, industry equity, and restorative justice are all coming soon! https://t.co/5P1Zt0tY4m

- Earl Blumenauer (@repblumenauer) March 27, 2019

The House Rules Committee sets the House’s agenda. During the previous Congress (the 115th), it was led by Pete Sessions, a staunch opponent of legalization who blocked all attempts at deregulation. Its new chairman, Democrat James McGovern, seems much more willing to let Congress legislate on the issue. He recently stated : “In a relatively short time—in the coming weeks—I think we’re going to see a very strong vote.».

He was referring, in this case, to the STATES Act, which would give states the freedom to legislate on cannabis and establish a legal cannabis industry without the threat of federal interference. «We’re going to bring it [the bill] to the floor of the House of Representatives for a vote, and I think it will pass with near-unanimity—including many Republicans. If we have a strong bipartisan vote, it will increase pressure on the Senate to take action.»