C A n n A b i s
Legalizing cannabis After 50 years, Congress gets serious about changing the law, but won’t vote before the election by Ken Magri
A historic vote in the U.S. House on the The MORE Act also includes several federal legalization of cannabis has been criminal justice reforms: making it easier delayed until after the Nov. 3 election. to expunge federal cannabis convictions, House Resolution 3884, also allowing a review of federal prison known as the Marijuana Opportunity, sentences involving cannabis, mandating Reinvestment and Expungement that juvenile convictions be sealed and (MORE) Act, had been scheduled for a barring the use of cannabis convictions floor vote in late September. Introduced to discriminate in job hiring or immigrain 2019 by Rep. Jerry Nadler of New tion matters. York, the MORE Act removes cannabis “The MORE Act is a huge step in from a federal list of illegal the right direction and has the drugs, creates a potential to help right mechanism for many wrongs that expunging past have occurred over “The MORE Act cannabis the last several convictions decades in the is a huge step in the and offers war on drugs,” right direction, and has assistance to said Manndie traditionally Tingler, the potential to help right shut-out co-owner of many wrongs that have entrepreneurs Sacramento’s seeking to Khemia occurred over the last enter the Manufacturing industry. and a board several decades in the While the member of the war on drugs.” bill has bipartisan National Cannabis support and was Industry Association. expected to pass, By imposing a Majority Leader Steny federal cannabis tax of 5%, Hoyer told reporters that with so the MORE Act would also create little time left in the legislative session, an “opportunity trust fund” to support other issues were more important. those who have been hurt by the “war on A recent survey conducted by the drugs” with grants for job training, reenJustice Collaborative Institute found that try services, legal aid, literacy programs, 59% of Americans support the MORE substance abuse treatment, health educaAct, whereas only 20% oppose the bill. tion and youth mentoring. When President Nixon signed the Another important provision of the Controlled Substances Act of 1970, MORE Act is to give legal cannabis cannabis was put on the list of Schedule businesses access to banking services and 1 drugs, those with no accepted medical Small Business Administration loans and uses, but a high potential for abuse. By also allow businesses to deduct normal removing cannabis from the same operating expenses from their taxes. classification as LSD and heroin, the While cannabis banking is technically MORE Act allows state and local legal now, the Department of Justice governments to establish their own holds banks criminally responsible for cannabis policies in a manner similar to any violations by their cannabis business alcohol regulation. clients. “Most [small-sized] cannabis 42
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Manndie Tingler, co-owner of Sacramento’s Khemia Manufacturing Photo courtesy of khemia manufacturing
businesses lose several bank accounts a year,” said George Mull, a Sacramento attorney and executive director of the California Cannabis Association. The MORE Act will treat cannabis more like other businesses. “Not only will it encourage financial institutions to move in that direction, it will also take care of other issues, such as not having access to major credit cards,” said Sundie Seefried, CEO of Safe Harbor Banking, a subsidiary of Partner Credit Union in Denver. Seefried manages more than 500 cannabis business accounts worth more than $3 billion, including several multistate operators. “California is a great market,” she said. While most House Democrats support the MORE Act, including all Sacramento-area representatives, the floor vote was likely delayed until after the election to take pressure off moderate Democrats from more conservative districts whose constituents may not favor cannabis legalization. House support is being called “bipartisan” because of backing from three Republicans, including Tom McClintock, whose district includes El Dorado, Placer and other foothill counties. In early September, McClintock told Politico,
“With respect to timing, I do find it ironic that the only small businesses the Democrats seem to be worried about is cannabis shops, but I would support this bill whenever it is brought to a vote.” But if it passes the House, the bill has no chance of even coming up for a vote in the Senate under the current Republican leadership. If Democrats win a Senate majority in November, however, that dynamic immediately changes in the next Congress. Sen. Kamala Harris of California, the Democratic vice presidential nominee, has already introduced the Senate version, which has seven co-sponsors. Could cannabis be legalized on the federal level in 2021? “I don’t have a great deal of confidence,” said Seefried. “But six years ago they were laughing us out of the room, didn’t want to talk about legislation. Now, they’re voting on federal legality.” “I see it as a social justice issue and I am hopeful the Senate will, too, especially given the current climate in our country around social justice movements,” said Tingler. “It would show good faith on the part of the Senate toward righting generational wrongs.” Ω