Press Release

Senate Appropriations Committee to Allow Banks to Provide Services to State-Legalized Marijuana Stores

Fourth Straight Senate Victory for Marijuana Reform
 
Senate Bill Would Also Allow D.C. to Tax and Regulate Marijuana
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Contact:</h2>
<p>Tony Newman 646-335-5384<br />
Michael Collins 404-539-6437</p>

The Senate Appropriations Committee voted today 16 to 14 to allow banks to provide services to marijuana businesses. Currently, because marijuana is illegal under federal law, both medical and non-medical marijuana businesses are unable to access banking services like any other business. Consequently, many marijuana businesses operate on a cash-only basis, leading to huge public safety issues as businesses become the target of robberies, and are forced to hire armed security to protect their takings.

“One of the motivations for legalizing marijuana is to eliminate the illicit market and put marijuana in the hands of a legitimate regulated market,” said Michael Collins, deputy director of national affairs at the Drug Policy Alliance. “Whether you are for or against legalization, you have to recognize that having marijuana businesses handling huge amounts of cash with nowhere to deposit the money is a public safety concern that Congress has to tackle.”

In addition to banking, the bill passed today allows Washington DC to establish regulated marijuana stores. The House version, however, has language maintaining a ban on dispensaries.

“Congressional interference has left D.C. in a state of limbo,” said Kaitlyn Boecker, policy coordinator at the Drug Policy Alliance. “Almost two years after voters legalized marijuana, it is legal to possess, use and grow marijuana in the nation’s capital, but sales remain illicit and unregulated. Allowing the District to move forward with a regulatory system will increase public safety, address much needed reforms, and generate tax revenue to fund treatment and education.”

In November 2014, nearly 72% of D.C. voters approved a ballot measure making it legal to possess and grow marijuana for personal use. The campaign to pass Initiative 71 was driven by public demands to end racially-biased enforcement of marijuana laws and was seen as the first step at taking marijuana out of the illicit market. A broad base of community support from multiple civil rights organizations, faith leaders and community advocacy groups supported Initiative 71, viewing it as an opportunity to restore the communities most harmed by the war on drugs.

In December 2014, House Republican leadership was able to push through a controversial spending amendment that prohibited D.C. from legalizing and regulating marijuana sales, but the amendment allowed Initiative 71 to take effect. Thus, it is legal to possess, use, and grow marijuana in the nation’s capital but the sale of marijuana remains illicit and unregulated. D.C. officials, police, and drug policy experts have complained that Congress is undermining public safety by preventing the city from regulating marijuana, with some calling the situation “the dealer protection act.” The Financial Services spending bill adopted by the Senate Appropriations Committee today deletes the congressional ban.

The vote is the 4th time this year that the Senate Appropriations Committee has endorsed marijuana reform measures. “We are edging closer to the day when the federal government ends marijuana prohibition,” said Michael Collins, deputy director of national affairs at the Drug Policy Alliance. “There is clear bipartisan support in the House and Senate in favor of marijuana reform.”

Yesterday, the Senate Committee on Homeland Security and Government Affairs held an unprecedented roundtable hearing entitled “America’s Insatiable Demand for Drugs: Examining Alternative Approaches.” Ethan Nadelmann, executive director of the Drug Policy Alliance, testified and laid out his vision for ending the war on drugs and forging ahead with new policies based on science, health and human rights. Nadelmann provided a robust defense of marijuana legalization, presented evidence to support decriminalizing possession of all drugs, and discussed cutting-edge strategies to deal with the opioid crisis, such as safe injection facilities. He also discussed the devastating impact of the war on drugs on people of color.

“I think it’s a positive sign that political leaders, not just in the states but even on Capitol Hill, now recognize both the failure of the drug war and the need to think outside the box in addressing our country’s drug problems,” said Nadelmann.

Marijuana Legalization and Regulation