Federal officials are poised to unveil new regulations allowing for financial institutions to legally interact with licensed businesses that are engaged in cannabis commerce.
United States Attorney General Eric Holder announced the forthcoming guidelines yesterday in a speech at the University of Virginia’s Miller Center.
“You don’t want just huge amounts of cash in these place. They (retail facilities that dispense cannabis) want to be able to use the banking system,” Holder said. “And so we (the Obama administration) will be issuing some regulations I think very soon to deal with that issue.”
Presently, federal law discourages financial institutions from accepting deposits or providing banking services for facilities that engage in cannabis-related commerce because the plant remains illegal under the US Controlled Substances Act. While the Obama administration is unlikely to amend cannabis’ illegal status under federal law, the forthcoming rules are anticipated to provide clear guidelines for banks that wish to provide support for state-licensed cannabis facilities.
In Colorado, where retail stores began legally selling cannabis on January 1 to anyone age 21 and older, businesses were estimated to have engaged in over $5 million in marijuana sales in their first week of business.
In a profile published online over the weekend in New Yorker magazine, President Barack Obama continued his softening towards marijuana legalization. In the interview, the president alluded to his own youthful marijuana consumption and clarified that, while he doesn’t believe it to be a healthy pastime and has discouraged his daughters from its use, it is a less dangerous substance than alcohol. President Obama also stated that current moves towards legalization are important experiments that can help end discriminatory arrest practices.
“As has been well documented, I smoked pot as a kid, and I view it as a bad habit and a vice, not very different from the cigarettes that I smoked as a young person up through a big chunk of my adult life. I don’t think it is more dangerous than alcohol.” President Obama stated when asked about the growing public support for ending marijuana prohibition.
When asked to clarify if he thought it was “less dangerous,” Obama replied that he thought it was less dangerous “in terms of its impact on the individual consumer.” He continued that “it’s not something I encourage, and I’ve told my daughters I think it’s a bad idea, a waste of time, not very healthy.”
“Middle-class kids don’t get locked up for smoking pot, and poor kids do and African-American kids and Latino kids are more likely to be poor and less likely to have the resources and the support to avoid unduly harsh penalties.” he stated, “we should not be locking up kids or individual users for long stretches of jail time when some of the folks who are writing those laws have probably done the same thing.”
“It’s important for it [marijuana legalization in Colorado and Washington] to go forward because it’s important for society not to have a situation in which a large portion of people have at one time or another broken the law and only a select few get punished.”
You can read the full article on the New Yorker’s website here.
Perhaps President Obama will continue to evolve and find himself on the right side of history when it comes to marijuana legalization. It would take just one simple Executive Order to deschedule marijuana from the Controlled Substances Act and help institute some real lasting change in our nation’s failed war on cannabis. At a minimum, these statements show just how far we have come from the “Just Say No” era of American politics.
Reported this week in the Daily Herald:
Community banks and credit unions are ready and willing to provide financial services to entrepreneurs in the state’s new legal pot industry. But they aren’t able to, at least not yet.
Marijuana businesses, even ones that will soon be legally licensed in this state, are considered criminal enterprises under federal law, which makes handling their money a crime in the eyes of the Department of Justice.
Until the agency changes its outlook or Congress changes the law — and efforts are under way to do both — those getting into the pot business can’t open a bank account, secure a line of credit or obtain a loan from a federally insured financial institution in their neighborhood.
Fortunately, there is already a bill Congress could act upon to resolve this issue. Earlier this year, Representatives Ed Perlmutter (CO-07) and Denny Heck (WA – 10), along with a bipartisan group of 16 other Republicans and Democrats, introduced legislation that would reform federal banking laws relating to marijuana businesses. HR 2652: The Marijuana Business Access to Banking Act of 2013 updates federal banking rules to resolve conflicts between federal and state laws and would allow marijuana businesses acting in compliance with state law to access banking services.
Under current federal banking laws, many legal, regulated legitimate marijuana businesses that follow state law are prevented from opening bank accounts and operating as any other businesses would, which could ultimately lead to crime such as robbery and tax evasion in addition to the already onerous burden of setting up a legitimate small business.
Please take a minute of your time today to utilize NORML’s Take Action Center to contact your elected officials and urge them to support this important legislation. You can do so by clicking here.
New York City Comptroller’s Office: Legalizing Marijuana in NYC Would Yield $431 Million Annually in Savings and RevenueAugust 15, 2013
The regulation and taxation of marijuana for New York City residents age 21 and over would yield an estimated $431 million in annual savings and revenue, according to a report released this week by the New York City Comptroller’s Office. The mission of the Comptroller’s Office is to ensure the financial health of New York City by advising the Mayor, the City Council, and the public of the City’s financial condition.
The report, entitled “Regulating and Taxing Marijuana: The Fiscal Impact on NYC,” estimates that regulating and taxing the commercial production and retail sales of cannabis to adults would yield an estimated $400 million annually. This figure is based on existing estimates regarding cannabis’ present market price and demand in New York City, as well as by calculating the imposition of an excise tax (on commercial production) and sales tax (on retail sales).
Authors further estimate that $31 million dollars would be saved annually in eliminating citywide misdemeanor marijuana possession arrests [NY State Penal Law 221.10 -- possession of any amount of cannabis in public view], which in recent years have totaled approximately 50,000 arrests per year — largely as a result of law enforcement’s aggressive use of ‘stop-and-frisk’ tactics. Persons arrested are often under age 25 and disproportionately are those of color. Combined, blacks and Hispanics make up 45 percent of marijuana users in New York City, but account for 86 percent of possession arrests, the Comptroller’s report found.
The Office did not attempt to quantify the broader economic impacts of legalization, including the costs of lost time, work, and other opportunities currently imposed on those arrested. The report’s authors also acknowledged that they did not attempt to quantify the costs of incarceration, which are largely borne by the state, or other secondary fiscal impacts of legalization, such as the positive or negative effects on public health spending.
Following the release of the study, City Comptroller and Mayoral candidate John Liu spoke out in favor of legalizing the consumption of cannabis by adults, stating: “New York City’s misguided war on marijuana has failed, and its enforcement has damaged far too many lives, especially in minority communities. It’s time for us to implement a responsible alternative. Regulating marijuana would keep thousands of New Yorkers out of the criminal justice system, offer relief to those suffering from a wide range of painful medical conditions, and make our streets safer by sapping the dangerous underground market that targets our children.”
Over the last year or so I’ve read about and on occasion met with the newly minted ‘cannabis CEOs’ in America (men and women who’re at the vanguard of creating a sustainable cannabis industry in America post prohibition). Most of them talk in couched terms regarding what they ‘hope’ to see happen with a legal cannabis market in the US or issue over-the-top and breathless press releases that seek to attract investor attention.
However, Vice Magazine has produced a very fascinating and revealing short documentary featuring a real life cannabis industry CEO who walks the walk when it comes to not only taking substantive legal chances to further his businesses, but one who lives his life as-a-always-interested-stakeholder in the future of humans being able to access high quality cannabis products.
Having met Amsterdam’s Arjan Roskom of the famed Green House coffeeshops and seed company on a number of occasions previously, I was hardly surprised when Vice contacted me to review their documentary that Arjan was featured and had provided them an insider’s view of what it is like to be a genuine cannabis industry maverick.
The Vice documentary focuses on Arjan and his lead cultivator traveling to the deep jungles of Colombia to re-locate three famed sativa strains of cannabis historically cultivated in this region of South America.
Cannabis kudos to Vice and Arjan!