The legal outlook

Lobbying continues in the US capital around cannabis legalization

The legal outlook

Lobbying continues in the US capital around cannabis legalizationThere are a couple of noteworthy legislative efforts underway in the US to improve the environment for cannabis companies. While Jeff Sessions, the previous attorney general, strongly opposed states' rights relating to cannabis and had threatened a clampdown, current Attorney General William Barr has taken a softer approach, suggesting he’d like to seek a resolution between the conflict and state and federal law.King has spent several years lobbying in Washington, DC on this issue. While he is optimistic about several of the bills currently in progress, he notes that the conversation has become more nuanced even as it’s become higher profile.‘The legalization discussion is becoming more complicated than when it was just an up or down vote,’ he points out.‘There are now conversations about where the tax dollars would go and about expunging criminal records for those already convicted of cannabis offenses. The broader you make the discussion, the less support you have for the debate.’Below we shine a light on the most high-profile legislative efforts to reform the cannabis industry in the US.

The Strengthening the Tenth Amendment Through Entrusting States Act – This bill aims to recognize compliance with state laws and prevent a federal crackdown on cannabis companies – so if a cannabis company was trading in California and operating within the restrictions that are laid out in the state law, it would not be vulnerable to federal enforcement. The bill was originally introduced in the House of Representatives and the Senate in June 2018, but didn’t get passed into law prior to the mid-term elections. It was reintroduced into both chambers in April 2019 and has bi-partisan support in the House.

The Secure and Fair Enforcement Banking Act – This bill would enable financial bodies to offer services to legal cannabis companies without fear of federal prosecution. The bill was introduced to the House in March 2019, with the House Committee on Financial Services quickly voting to approve it. It was passed by the House on September 25, 2019. The bill has also been introduced to the Senate, and a hearing was held in the Senate’s Banking Committee in July 2019.