Senators Introduce Bill to Decriminalize Marijuana

March 18, 2015 | Health Services

New York’s junior senator, Kristin Gillibrand, joined with New Jersey senator Cory Booker and Kentucky senator Rand Paul to introduce a bill that would decriminalize marijuana, removing the threat of federal prosecution for the growth and manufacture of medical marijuana in states that allow for it, including New York. 

The bill addresses many issues medical marijuana manufacturers currently face. Most notably, the bill would reschedule marijuana so that its manufacture, distribution, and use is not per se illegal under federal law. The bill also creates safe harbors to banks and credit unions to transact in the money generated from marijuana business ventures. It would also allow doctors in the Department of Veterans Affairs to recommend the use of medical marijuana, allow states to import certain marijuana by-products, and encourage research into the medical uses of marijuana. 

Marijuana is currently listed in Schedule 1 of the Controlled Substances Act (the “CSA”), which means that it is considered to have a high potential for abuse and no medically accepted use. By rescheduling marijuana to Schedule 2, the bill would list marijuana it in the same group as Oxycodone, Adderall, and Ritalin; drugs that are still considered to have a high potential for abuse, but are considered to have accepted medical uses. 

The rescheduling of marijuana will not lead to significant changes in marijuana policy across the country. Schedule 2 drugs are still highly regulated, but are not necessarily illegal, as Schedule 1 drugs are (other Schedule 1 drugs include cocaine, heroin, and LSD). Further, many states that have not explicitly legalized marijuana have their own prohibitions on its possession and use, which this bill would not change. Even in states that have carved out medical marijuana exceptions, marijuana distribution is not contemplated through the normal routes of Schedule 2 drugs, but through specially created dispensaries. New York’s medical marijuana laws and regulations, which can be read about here and here, will not be significantly affected by this bill. What the bill will accomplish is ensuring that medical marijuana producers and patients in New York and other states where marijuana has been legalized will not be exposed to possible criminal prosecution under the CSA. 

Recreational marijuana will remain illegal on the federal level even if this bill is passed, as Schedule 2 drugs cannot be made available without a physician’s prescription. 

The most significant impact the bill would have on the operations of current medical marijuana businesses would be allowing banks and credit unions to provide banking services to those businesses. Currently many marijuana businesses have difficulty obtaining loans, opening accounts, or depositing money in banks due to various federal laws that prohibit banking transactions from the proceeds of illegal activities. Further, nearly all marijuana-related business transacts in cash because credit card companies are equally concerned with their potential liability under the banking statutes, and the businesses often cannot deposit that cash. These safe harbors would likely allow banks to participate more robustly in medical marijuana businesses, and allow the businesses to obtain loans and deposit funds. It is not immediately clear how this may effect credit card companies that are similarly disinclined to be involved in marijuana businesses. 

The bill would also change the definition of marijuana to exclude cannabidiol. Cannabidiol is one of the active ingredients in marijuana that appears to provide medical benefits, particularly for individuals that suffer from seizure disorders, but does not have the psychological effects associated with the consumption of marijuana. This change would allow cannabidiol to cross state lines and allow for its use and possession without the threat of federal prosecution. 

The bill also proposes changing the current policy so that VA doctors can recommend medical marijuana to patients. While they are currently prohibited from doing so, there is some evidence to support that marijuana is effective in the treatment of many issues facing veterans, such as chronic pain and post-traumatic stress disorder. It would also remove some of the hurdles to federally-funded research into medical marijuana.

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