Oregon Senator, Ron Wyden, proposed legislation that aims to ease the conflict between states where cannabis is legal in some form and the federal law, which categorizes marijuana as a dangerous illegal drug just like heroin, LSD, and cocaine, for example.
While a number of states have adopted legalized medical marijuana, and some states have legalized recreational use and possession of a small amount of marijuana, federal law still makes it illegal to use, sell, buy, or grow marijuana in any form. Currently, ten states and Washington, D.C. have legalized small amounts of marijuana for adult recreational use (over the age of 21), and other states are working on legislation to legalize the popular drug. At the time of this writing, 33 states have legalized medical marijuana.
Wyden, who is a Democrat, said, “The federal prohibition of marijuana is wrong, plain and simple. Too many lives have been wasted, and too many economic opportunities have been missed.” Another Oregon Democrat, Representative Earl Blumenauer, said that voters have elected the most “pro-cannabis Congress in American history. Morgan Fox, a spokesperson for the National Cannabis Industry Association, believes there’s a good chance this cannabis reform legislation will move in the Senate.
Not surprisingly, Democratic presidential candidates are now promoting legalization of recreational marijuana as well with Senator Kamala Harris leading the way.
Legislation seems the way to go now for states seeking cannabis reform. According to businessinsider.com, in January 2019, Vermont became the first state to legalize marijuana through the legislature, instead of a ballot initiative, when Republican Governor Phil Scott signed the bill into law. Support for marijuana around the country reached new “highs” in 2018; a Gallup poll showed that 64% of Americans favor legalization (including a majority of Republican voters).
Wyden’s Bill
Senator Wyden’s bill would take marijuana off the federal list of “controlled substances.” It would also remove federal criminal penalties for businesses and individuals who were in compliance with their state’s marijuana laws. Currently, anyone following the letter of the law in their state can still face criminal penalties in a federal court if law enforcement chooses to pursue criminal prosecution.
The bill also reduces barriers for legal marijuana businesses to get access to banking. At the current time, thousands of licensed and regulated pot-related businesses don’t have full access to the banking system and are unable to accept credit or debit cards, deposit revenues, or write checks to meet payroll or pay taxes. Because marijuana is still illegal in the eyes of the federal government, most banks aren’t willing to take the risk of doing business with cannabis companies. This forces cannabis-related businesses to have stockpiles of cash, which makes them a target for robberies and actually hurts the economy by taking currency out of circulation.
Congressional Democrats are planning to hold a House Financial Services Committee hearing in mid-February 2019 to discuss potential solutions to the issue, and the Secure and Fair Enforcement Act (SAFE) could be the answer as it will protect financial institutions doing business with state-legal cannabis operations.
Wyden’s proposed cannabis reform is part of a three-bill deal; the second part seeks to impose a tax on marijuana products (similar to an excise tax on alcohol). The third part of the bill would allow legal marijuana businesses to claim tax deductions and credits.
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