States to Feds: End Cannabis Prohibition Now

After a vote last week, the National Conference of State Legislators (NCSL) adopted a revised cannabis policy measure (the “Directive“) which supports federally descheduling cannabis, as well as cannabis banking reform. At this point, it’s abundantly clear that the states have moved beyond cannabis prohibition.

The NCSL is a non-partisan organization that represents all state legislators nationwide. A state legislator present at the summit, held in Denver, said that most of the discussion leading up to the vote centered on federal cannabis banking reform, but there was no debate on the language of cannabis legalization. The legislator said that there was minimal opposition, with an estimated five to seven states of the 44 in attendance that vocalized their opposition.

NCSL passed similar measures back in 2017 and 2018 calling for cannabis descheduling, though those measures were limited in scope, specifying that states should be free to establish their own cannabis legislation without federal intervention. This time, the NCSL made an explicit call for federal cannabis legalization. The Directive also states that “until cannabis is federally descheduled,” the federal government should focus on enforcing penalties for criminal enterprises in “illicit” cannabis production and distribution instead of citizens who comply with state cannabis legislation.

A new section of the Directive charges Congress with passing legislation centered on cannabis banking reform. The Directive states that cannabis businesses are forced to deal primarily in cash because they cannot access the country’s banking system, which makes them prime targets for theft, burglary, and armed robbery. This section “urges Congress to pass legislation allowing financial institutions to provide banking services to legitimate state authorized cannabis-related businesses.” This strong language demonstrates the state legislators’ focus on cannabis banking reform and access to financial services.

The Directive is significant for several reasons. Primarily, it shows that states favor an escalation of federal cannabis reform since adopting past measures. Instead of simply resolving that the federal government should not interfere with state cannabis legislation, the revised measure calls on Congress to deschedule cannabis and reform cannabis banking at the federal level. The Directive also demonstrates uniformity among state legislators in supporting federal cannabis reform, as the measure passed with an overwhelming majority and marginal voiced opposition.

The timing of the Directive is interesting, as it comes with roughly a dozen federal cannabis reform bills floating around Congress. Perhaps the bill with the greatest amount of traction is the Cannabis Administration and Opportunity Act (CAOA), sponsored by Senate Majority Leader Chuck Schumer (D-NY) and Senators Ron Wyden (D-OR) and Cory Booker (D-NJ). The bill was filed last month, and while there may not be enough support for the CAOA to clear the Senate’s 60-vote threshold in the immediate future, Schumer has continued holding bipartisan talks about cannabis reform. He most recently stated that he is committed to passing “something” on cannabis reform by the end of the year.

Finally, NCSL adopted the Directive with the SAFE Banking Act having floated around Congress for several years. The SAFE Banking Act is a bill aimed at remedying the cannabis industry’s exclusion from the banking system, but was recently left out of a larger package of manufacturing reforms as a concession to Republicans lawmakers to pass the bundle of reforms.

The latest NCSL adopted cannabis measure, which supports the federal descheduling of cannabis and cannabis banking reform, is a positive development. It indicates pressure to hasten reform and uniformity among state legislators. Whether Majority Leader Schumer gets his wish and passes “something” on cannabis reform this year remains to be seen.

To catch up on recent federal efforts to end cannabis prohibition, check out the following:

Federal Cannabis Legalization: The CAOA is Back!
Federal Cannabis Legalization Roundup: Part 3
Federal Cannabis Legalization Roundup: Part 2
Federal Cannabis Legalization Roundup: Part 1

The post States to Feds: End Cannabis Prohibition Now appeared first on Harris Bricken Sliwoski LLP.

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