On Sunday February 16th, I bought legal weed for the first time from a recreational cannabis store in Denver, Co. I spent a few minutes speaking with some of the employees, as I was eager to hear how things were going under this newly sanctioned marijuana market. Unsurprisingly, business was great. Some items were selling quicker than others, but everyone was in agreement that the rollout of Colorado’s legal cannabis retail system had been a great success, except for one crucial component that was as unsettling as it was expected – we were standing in one of a few dozen high profile stores, well-known for having excessive amounts of cash on hand (in the first week of sales, businesses generated $5 million in cash-only transactions) and no where to put it, because the banks won’t take it.
Clearly, denying these pot stores the ability to safely deposit their earnings poses an imminent threat to public safety. These shops are easy targets for robbery and assault (as well as other forms of criminal activity), which puts customers and employees at serious risk. Some of these shop owners are considering banning backpacks or other large bags – others are arming their workers. Neither of these options are a viable solution.
This problem isn’t new however, nor is it going unnoticed. On February 14th, the Department of Treasury released a nonbinding memorandum, in conjunction with the Justice Department stating that banks may consider working with pot retailers without fear of prosecution – so long as they remain in compliance with state laws, and followed other instructions outlined in the memo. Though a truly historic and progressive action by the federal government’s leading financial regulatory body, these guidelines are largely symbolic, providing no actual legal protection to banks working with cannabis shops. As such, most financial companies remain skeptical about getting involved with a market existing under so many contradictory laws.
According to federal law, these banks could technically be found guilty of money laundering (among other offenses) for handling the proceeds of what the US government still considers an illegal drug. The Colorado Bankers Association rightly notes that the guidance issued by the Department of Justice and the U.S. Treasury “only reinforces and reiterates that banks can be prosecuted for providing accounts to marijuana related businesses.” The Association further criticizes these new guidelines, stating that “Bankers had expected the guidance to relieve them of the threat of prosecution should they open accounts for marijuana businesses, but the guidance does not do that. Instead, it reiterates reasons for prosecution and is simply a modified reporting system for banks to use. It imposes a heavy burden on them to know and control their customers’ activities, and those of their customers.”
Is it any surprise then that these guidelines – which include a multi-tiered labeling structure and a requirement for banks to maintain ‘suspicious activity reports’ – have left many financial institutions with cold feet? Two of Colorado’s largest banks, Wells Fargo and FirstBank have already announced they won’t work with weed-related enterprises. In fact, most financial trade associations have widely rejected these latest overtures because there are no tangible, legal policies in place.
Despite the skepticism held by many federal administration officials and other politicians, the government can and should be doing much more to enable the success of this new, legal market. Unfortunately, many are sitting on their hands, and holding their breath – hoping to quietly ride out this growing wave of support for legalization, which shows no sign of subsiding. Over 50% of the US population supports a regulated marijuana retail system for adults.
Its time for these officials to concede to the will of the electorate, and address the legitimate needs of this new industry. Lawmakers now have an opportunity to show true leadership in this changing political landscape by supporting legislation that would give states and businesses the resources necessary to enable a responsible and successful implementation of this new “great experiment.” Specifically, they should get behind the “Marijuana Businesses Access to Banking Act,” introduced by Colorado representative Ed Perlmutter. This bill (HR 2652), already endorsed by the Colorado Bankers Association, would alter various banking laws to protect banks providing services to marijuana-related businesses from the threat of federal prosecution and other penalties.
Financial institutions don’t operate off good-faith statements (including non-binding memorandums) – even those from the Department of Treasury, or any other enforcement agency. They operate under explicit legal authorization. Only when the laws change will the banks truly be free to provide the services these businesses so desperately need, and their communities rightly deserve.
Contact your representative today and tell them to support HR 2652
Members of the National Black Caucus of State Legislators recently resolved at their Annual Legislative Conference in favor of decriminalizing marijuana.
“Whereas state and local governments could potentially stand to save billions of dollars that they currently spend regulating marijuana use by decriminalizing the recreational use of marijuana, therefore be it resolved that the National Black Caucus of State Legislators recognizes the decision of the Administration to not challenge the choice made by citizens of these states, and urges the continued respect of state law, and encourages other states to consider decriminalization,” the Caucus resolved.
It added, “[The] NBCSL supports the states’ authority to make a determination as to what age, at or above 18, qualifies as a “legal adult” who may purchase, possess, or consume marijuana [and] … urges the federal government to reduce the penalties associated with the use and simple possession of marijuana.”
The 2014 resolution is LJE-14-40: Supporting States’ Rights to Decriminalize Marijuana Use.
A 2013 report by the American Civil Liberties Union reported that blacks nationwide were approximately four times as likely as whites to be arrested for marijuana possession in 2010, even though both ethnic groups consumed the substance at similar rates.
The National Black Caucus of State Legislators represents more than 650 African-American legislators from 45 states, the District of Columbia, and the Virgin Islands.
NORML filed an “amicus curiae” brief with the Massachusetts Supreme Court on Tuesday, February 18, urging the court to place more limits on police questioning and searches for possession of small amounts marijuana. Attorneys Steven S. Epstein, of Georgetown, and Marvin Cable, of Northampton, authored the brief.
In Western Massachusetts, a judge ruled that based on the odor of raw marijuana an officer could question the defendant about the presence of marijuana and seize a bag of marijuana at the direction of defendant in response to those questions. She reasoned, “a strong odor of marijuana to the officers training and experience triggered a suspicion that there was more than one ounce present.” That suspicion justified asking the Defendant about it and police entering his car to retrieve the marijuana he told them was there.
She further ruled that once police retrieved that bag they lacked the authority to search for more marijuana. She reasoned that a belief the bag was “probably” a criminal amount alone and combined with an officer’s characterization of the odor as “strong” amounted to nothing more than a “hunch.” She ordered the “other bags and the statements subsequently made by the defendant” could not be used at trial. The state appealed.
In its friend of the court brief, NORML reminds the Court of the precarious constitutionality of marijuana prohibition. It then proceeds to ask the Court to rule that: a police officer may not question a person about possible marijuana in his possession or control based only on the officer’s perception of odor, a civil violation in Massachusetts; and, that absent objectively reasonable evidence derived from weighing a bag suspected of containing over an ounce police may not detain, arrest or search a person or their possessions.
NORML argues the citizens of Massachusetts by voting to decriminalize an ounce or less of marijuana do not want police bothering people with anything more than a ticket when there are no articulated facts that a suspected possession of marijuana is criminal in nature. One of the intents of the decriminalization law was to free police to pursue more pressing issues than marijuana possession.
Oral argument in the case of Commonwealth v. Overmyer is scheduled for March 3, with a decision possible before the summer of 2014.
Polling data released today by Quinnipiac University revealed that a majority of Ohio voters support legalizing marijuana for recreational use and nearly 9 out of 10 support legalizing marijuana for medicinal use.
When asked if they supported or opposed allowing adults in Ohio to legally possess small amounts of marijuana for personal use, 51% said they would support this policy and only 44% were opposed. Support was strongest amongst voters age 18-29 (72%), Independent voters (61%), and Democrats (54%) and weakest among Republicans (33%) and voters over the age of 65 (31%).
Essentially all voters stated they supported legalizing marijuana for medicinal use. 87% said they supported allowing marijuana for medical use and just 11% were opposed. No demographic had less than 78% support.
Rob Ryan, Ohio NORML President, is not surprised by the favorable Quinnipiac poll response. In his experience speaking to various non marijuana groups, even the most conservative citizens in south west Ohio, where Mr. Ryan lives, readily agree that marijuana is not a deadly, addictive drug with no medical use as it is defined by to be in the same class as heroin by state and federal law.
You can view the full results of the poll here.
On Friday, more than 40 state lawmakers in Maine co-signed a memo authored by State Representative Diane Russell that was delivered to the Appropriations & Financial Affairs Committee. The memo encouraged the committee to keep all options on the table in their upcoming financial deliberations, including potential tax revenue derived from an adult, non-medical market for marijuana.
“All options should be on the table,” Rep. Russell stated in the memo, “In this spirit, we propose committee members give serious consideration to the revenue options associated with legalizing, taxing and regulating cannabis for responsible adult use.”
The memo was signed by prominent elected officials in the state including Majority Leader Troy Jackson (D-Allagash), House Majority Leader Seth Berry (D-Bowdoinham), Minority Whip Alex Willette (R-Mapleton), House Chair of Criminal Justice and Public Safety and former County Sheriff Rep. Mark Dion (D-Portland), and House Health and Human Services Committee Chairman Richard Farnsworth (D-Portland).
In 2013, the Maine House of Representatives fell just four votes short of approving a measure introduced by Rep. Russell which would have placed the issue of marijuana legalization before voters during the fall elections.
Last week, initial tax revenue estimates for the sales tax on recreational marijuana in Colorado were estimated to be just shy of 100 million dollars, far higher than the initial 70 million dollar estimate given to voters in 2012.