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Lawmakers in Vermont have passed legislation to legalize and fund a Burlington facility where people could use currently prohibited substances in a medically supervised environment—part of a pilot program aimed at quelling the state’s ongoing epidemic of drug-related deaths. The measure now heads to the desk of Gov. Phil Scott (R), who vetoed an earlier 2022 measure that would have created a task force to study such sites.

The House of Representatives signed off on Senate-made changes to the bill, H.72, in a voice vote on Tuesday. The Senate approved the measure after making the changes last week.

House lawmakers approved a previous version of the bill in January, as Rep. Theresa Wood (D) reminded colleagues ahead of Tuesday’s floor vote.

“Members may have forgotten about this bill,” she joked. “It was one of the very first ones we passed back in January.”

If enacted, the legislation would create an overdose prevention centers (OPC) Burlington, with $1.1 million set aside in funding plus another $300,000 to study the study the impact of the pilot project. The OPC would need to have on-site professionals with training in CPR, overdose interventions, first aid and wound care, as well as medical assessments to determine the need for further emergency care.

“The Vermont Department of Health has a public health campaign that tells all people with substance use disorder to never use alone, because doing so can be extremely dangerous,” Wood told House colleagues. “Between 2012 and 2023, there were over 1,500 Vermonters that died. The vast majority of them did not have a bystander. This is a shocking loss of lives—lives that were our friends, our family members, our community members and so many Vermonters, all of whom deserved a chance to live and heal.”

Beyond establishing a site where people could use drugs in a medically supervised setting, the bill also now includes a Senate-added requirement that the facility provide drug-checking services, and it includes language on criminal immunity for OPC staff, property holders and others to ensure they aren’t subject to arrest or prosecution as the result of good-faith overdose prevention efforts.

If it becomes law, Vermont would join Rhode Island and Minnesota in authorizing the facilities.


Sponsored by Rep. Taylor Small (P/D) and 28 House colleagues, the bill is another attempt by lawmakers to allow overdose prevention centers following Scott’s veto of a 2022 measure that would have established a task force to create a plan to open the sites.

Earlier this year, the governor said he’s still skeptical of this session’s proposal. “I just don’t think that a government entity should be in the business of enabling those who are addicted to these drugs that are illegal,” he said in January, as the measure passed out of the House in its earlier form.

Scott wrote in his 2022 veto message on the earlier legislation that “it seems counterintuitive to divert resources from proven harm reduction strategies to plan injection sites without clear data on the effectiveness of this approach.”

Some who opposed the bill during Tuesday’s House session said they felt it was premature, as the sites are not federally approved.

“If this site does get established in Burlington, you can be assured that I may be the first one going on up there saying, ‘How can I help?'” said Rep. Eric McGuire, a program manager at a family services center in Rutland who provides volunteer ministerial services at the Vermont Department of Corrections. “But this is not a proven practice at this time in our country.”

“I believe in cutting edge approaches to harm reduction as a practitioner in our field,” McGuire said, but he added that “we have an obligation and a duty as practitioners to follow the models as outlined, whether it’s the ethical standards and the moral standards,” arguing that OPCs have not been recognized by the American Society of Addiction Medicine, the Substance Abuse and Mental Health Services Administration (SAMHSA) or the National Institutes of Health.

“My fear is this is going to result in unintended consequences that could damage anything moving any further,” he said.

Rep. Casey Toof (R) said he agreed with McGuire’s criticism but also opposed using money from the state’s opioid settlement fund to pay for a single site in Burlington.

“I’m just looking at the $1.1 million that we’re going to allocate to one municipality that the rest of the state’s gonna have to pick up and pay for,” he said. “I don’t see my constituents using the services that are provided in these injection booths.”

“This is a pilot project,” responded Wood. “I want to point out that this is a pilot project, very much for us to learn from this experience. And the city of Burlington is equipped—and has requested, frankly, the ability to be a pilot project for this.”

She said the experiment could “assist in saving lives in the city of Burlington and assist our state in understanding better what this could mean for harm reduction.”

Today's press conference was powerful with so many voices in support of #OPCs.

And, today bill H.72 officially passed the #VT legislature! #vtpoli

It's time for OPCs in VT. Tell Gov. Scott to sign the bill: https://t.co/SV2H3t40wKpic.twitter.com/vbBszgcuvQ

— Decriminalize Vermont (@DecrimVermont) May 7, 2024


As passed by the House earlier this year, the legislation would have instead created two overdose prevention centers (OPCs) in undeclared parts of the state, with $2 million set aside in funding for the facilities. A broad amendment adopted in the Senate Health and Welfare Committee last month, however, narrowed the pilot program to a single site in the city of Burlington, where officials have expressed interest in hosting a facility.

In addition to endorsements from the current and former mayors of Burlington itself, the proposal has support from advocacy groups including the Drug Policy Alliance, Law Enforcement Action Partnership, National Harm Reduction Coalition, the American Diabetes Association, Planned Parenthood of Northern New England, Johnson Health Center, Broken No More, Recovery Vermont and the Vermont Association for Mental Health Addiction and Recovery.

Separately on Tuesday, a Vermont’s Senate committee endorsed a small change to a measure that would establish a working group to study whether and how to allow therapeutic access to psychedelics, a proposal that next heads to the chamber floor. If that bill becomes law, a report from the working group would be due to the legislature in November with recommendations on how to regulate the substances.

The change approved in committee would direct the Vermont Psychological Association to collaborate with the state Department of Health to help staff and provide technical assistance to body.

As originally introduced, that bill, S.114, would have also legalized use and possession of psilocybin, but lawmakers on the Senate Health and Welfare Committee nixed that section to focus instead on the working group.

Though Rhode Island and Minnesota have state laws on the books allowing safe drug consumption sites, New York City became the first U.S. jurisdiction to open locally sanctioned harm reduction centers in November 2021, and officials have reported positive results saving lives.

An early study published by the American Medical Association (AMA) found that the facilities had decreased the risk of overdose, steered people away from using drugs in public and provided other ancillary health services to people who use illicit substances. And separate research published by AMA late last year found that the centers have not led to increased crime despite a significant decrease in arrests.

Meanwhile the federal government has fought an effort to open an overdose prevention center in Philadelphia, with the Biden administration arguing that the facilities violate federal law. Last month, the court in that case granted the Justice Department’s motion to dismiss a challenge from organizers.

The Supreme Court rejected a request to that hear that case in October 2021.

DOJ first blocked the Philadelphia nonprofit from opening the overdose prevention center under the Trump administration. Supporters hoped the department would cede the issue under President Joe Biden, who has promoted harm reduction policies as an alternative to criminalization, but the parties could not reach an agreement to allow the facility to open despite months of “good faith” negotiations.

Congressional researchers have highlighted the “uncertainty” of the federal government’s position on such facilities, pointing out last November that lawmakers could temporarily resolve the issue by advancing an amendment modeled after the one that has allowed medical marijuana laws to be implemented without Justice Department interference.

Meanwhile, National Institute on Drug Abuse (NIDA) Director Nora Volkow has tacitly endorsed the idea of authorizing safe consumption sites, arguing that evidence has effectively demonstrated that the facilities can prevent overdose deaths.

Volkow declined to say specifically what she believes should happen with the ongoing lawsuit, but she said safe consumption sites that have been the subject of research “have shown that it has saved a significant [percentage of] patients from overdosing.”

Rahul Gupta, the White House drug czar, has said the Biden administration is reviewing broader drug policy harm reduction proposals, including the authorization of supervised consumption sites, and he went so far as to suggest possible decriminalization.

The National Institutes of Health (NIH) put out a pair of requests for applications in December 2021 to investigate how safe consumption sites and other harm reduction policies could help address the drug crisis.

Gupta, the director of the White House Office of National Drug Control Policy (ONDCP), has said it’s critical to explore “any and every option” to reduce overdose deaths, which could include allowing safe consumption sites for illegal substances if the evidence supports their efficacy.

Democratic Congressman Lays Out New Marijuana Agenda To Reflect Renewed ‘Optimism’ Amid Rescheduling Move

 
 
 

A bill to protect banks that service state-legal marijuana businesses from being penalized by federal regulators has been reintroduced in the Senate—with nearly a third of the chamber as cosponsors. It’s a development that takes on a new light now that Democrats are back in control the chamber.

This comes days after the Secure and Fair Enforcement (SAFE) Banking Act was refiled in the House, where it passed with bipartisan support as a standalone bill in 2019 and also as part of two COVID-19 relief bills.

The Senate version is being sponsored by Sens. Jeff Merkley (D-OR) and Steve Daines (R-MT), and it currently has 27 other cosponsors. In the House, the legislation has more than 100 members who’ve signed on as cosponsors.

The SAFE Banking Act would ensure that financial institutions could take on cannabis business clients without facing federal penalties. Fear of sanctions has kept many banks and credit unions from working with the industry, forcing marijuana firms to operate on a cash basis that makes them targets of crime and creates complications for financial regulators.

“No one working in a store or behind a register should have to worry about experiencing a traumatic robbery at any moment,” Merkley said in a press release. “That means we can’t keep forcing legal cannabis businesses to operate entirely in cash—a nonsensical rule that is an open invitation to robbery and money laundering. Let’s make 2021 the year that we get this bill signed into law so we can ensure that all legal cannabis businesses have access to the financial services they need to help keep their employees safe.”

I'm working on this bill with @SteveDaines to remove the barriers to capital and ensure that all communities can operate legal cannabis businesses. Learn more ⬇️https://t.co/xYu0Vcc4EP

— Senator Jeff Merkley (@SenJeffMerkley) March 23, 2021


Daines added that “Montana businesses shouldn’t have to operate in all cash—they should have a safe way to conduct business.”

“My bipartisan bill will provide needed certainty for legal Montana cannabis businesses and give them the ability to freely use banks, credit unions and other financial institutions without the fear of punishment,” he said. “This in turn will help increase public safety, reduce crime, support Montana small businesses, create jobs and boost local economies. A win-win for all.”

Our bipartisan bill will help increase public safety, reduce crime, support Montana small businesses, create jobs and boost local economies. A big win for our communities.

— Steve Daines (@SteveDaines) March 23, 2021


With Democrats now in control of both chambers of Congress and the White House, industry stakeholders are optimistic that the legislation stands a solid chance of becoming law this year.

The Senate represented the bill’s most significant obstacle last session under GOP control.

After it passed the House last Congress, advocates and stakeholders closely watched for any action to come out of the Senate Banking Committee, where it was referred after being transmitted to the chamber. But then-Chairman Mike Crapo (R-ID) did not hold a hearing on the proposal, despite talk of negotiations taking place regarding certain provisions.

Crapo said he opposed the reform proposal, but he signaled that he might be more amenable if it included certain provisions viewed as untenable to the industry, including a 2 percent THC potency limit on products in order for cannabis businesses to qualify to access financial services as well as blocking banking services for operators that sell high-potency vaping devices or edibles that could appeal to children.

Sen. Sherrod Brown (D-OH), who took the top seat in that panel after Democrats secured a majority in the Senate, told reporters in February that he’s “willing” to move the cannabis banking bill, “but with it needs to come sentencing reform.”

“I don’t think we move on legalization the way that Colorado and some other states want us to, unless we really look more seriously at who’s in prison for how long for those kinds of offenses and we don’t do one without the other,” he said.

The committee’s ranking member, Sen. Pat Toomey (R-PA), said in November that “I am open to working with my colleagues on how we could enable businesses that are operating legally in their respective states to be able to have ordinary banking services” and that “I think that’s something we should work on.

Beside the chief sponsors, here’s who’s signed on to this latest version so far: Sens. Kyrsten Sinema (D-AZ), Ed Markey (D-MA), Alex Padilla (D-CA), Patrick Leahy (D-VT), Dick Durbin (D-IL), Ron Wyden (D-OR), Mazie Hirono (D-HI), Tina Smith (D-MN), Angus King (I-ME), Catherine Cortez Masto (D-NV), Michael Bennet (D-CO), Bob Menendez (D-NJ), Jon Tester (D-MT), Jacky Rosen (D-NV), Kevin Cramer (R-ND), Dan Sullivan (R-AK), Kirsten Gillibrand (D-NY), Elizabeth Warren (D-MA), Chris Murphy (D-CT), Gary Peters (D-MI), Bernie Sanders (I-VT), Brian Schatz (D-HI), Patty Murray (D-WA), Amy Klobuchar (D-MN), Rand Paul (R-KY), Bill Cassidy (R-LA) and Cynthia Lummis (R-WY).

Businesses operating legally in #VT should be able to use the banking system. I’m proud to again cosponsor the SAFE Banking Act to give businesses access to the financial services they need in the dozens of states that have legalized cannabis businesses, including Vermont.

— Sen. Patrick Leahy (@SenatorLeahy) March 23, 2021


At the end of the last Congress, the prior version of the SAFE Banking Act had garnered a total of 35 senators signed on, including now-Vice President Kamala Harris.

Proud to cosponsor @SenJeffMerkley's SAFE Banking Act.

It’s about time that we remove the financial limitations on legitimate marijuana-related businesses and allow them to access banking services that are key to their survival.https://t.co/95I1McdNS8

— Senator Bob Menendez (@SenatorMenendez) March 23, 2021


When legislative leaders announced that the SAFE Banking Act was getting a House vote in 2019,  there was pushback from some advocates who felt that Congress should have prioritized comprehensive reform to legalize marijuana and promote social equity, rather than start with a measure viewed as primarily friendly to industry interests.

Rep. Earl Blumenauer (D-OR), co-chair of the Congressional Cannabis Caucus and an original cosponsor of the bill, said on Friday that the plan is to pass the banking reform first this session because it “is a public safety crisis now,” and it’s “distinct—as we’ve heard from some of my colleagues—distinct from how they feel about comprehensive reform.”

Meanwhile, congressional lawmakers are simultaneously preparing to introduce legislation to end federal cannabis prohibition.

Senate Majority Leader Chuck Schumer (D-NY), Senate Finance Chairman Ron Wyden (D-OR) and Sen. Cory Booker (D-NJ) are in the process of crafting a legalization bill, and they’ve already met with advocates to get feedback on how best to approach the policy change. Wyden is the only member of the trio to be listed as an original cosponsor of the new SAFE Banking Act.

Schumer has said lawmakers must pursue broad justice-focused cannabis legislation and not stop at the industry-favored financial reform.

“Congress should not enact banking reform alone and think the job is done,” he tweeted in 2019. “We need decriminalization at the federal level, criminal justice reform, and investment in opportunity for minority & women-owned small businesses.”

It’s not clear if those views indicate that he opposes moving the SAFE Banking act ahead of a bill to end prohibition, or if he would allow it to come to the floor with the understanding the broader reform would follow.

House Judiciary Chairman Jerrold Nadler (D-NY) also recently said that he would be reintroducing the Marijuana Opportunity, Reinvestment and Expungement (MORE) Act, which would federally deschedule cannabis and contains a number of social equity provisions. That proposal passed in the House last year.

“With new Senate leadership now firmly in favor of cannabis policy reform, we are optimistic that this narrowly tailored—but absolutely necessary—legislation will be allowed to progress through the hearing process without delay,” Aaron Smith, co-founder and chief executive officer of the National Cannabis Industry Association, said in a press release. “This bill is a meaningful first step that will have immediate benefits in terms of safety, transparency, fairness, and much-needed economic opportunities while Congress continues working toward more comprehensive solutions to end prohibition and sensibly regulate cannabis.”

The American Bankers Association (ABA), for its part, says it’s important to advance marijuana banking reform. While the group doesn’t have a formal position on broader reform, it said in a letter to the House SAFE Banking Act sponsors last week that the cannabis financial services issue “has become a challenge for so many of our nation’s communities and the banks that serve them.”

“The bipartisan SAFE Banking Act would be an important step toward enabling financial services for cannabis-related businesses,” ABA wrote. “The SAFE Banking Act is not a cure all for the cannabis banking challenge, but it is a measure that helps clarify many issues for the banking industry and regulators.”

“Providing a mechanism for the cannabis industry to access the banking system would help those communities reduce cash-motivated crimes, increase the efficiency of tax collections, and improve the financial transparency of the cannabis industry,” the group said.

The office of Rep. Ed Perlmutter, chief sponsor of the House version of the bill, said the legislation is also being supported by the Credit Union National Association, Independent Community Bankers of America, National Association of Realtors, United Food and Commercial Workers and other groups.

As more states have legalized marijuana for recreational or medical use, financial institutions have relied on 2014 guidance from the Financial Crimes Enforcement Network (FinCEN) that requires them to submit suspicious activity reports if they elect to provide financial services to cannabis businesses. In the years since, the number of depositories taking on marijuana clients has gradually increased—until a more recent downward trend that now seems to be stabilizing.

The head of the Internal Revenue Service (IRS) told Congress last month that the federal agency would “prefer” for state-legal cannabis firms to be able to pay taxes electronically, as the current cash-based system under prohibition is onerous and presents risks to workers.

Former Treasury Secretary Steven Mnuchin similarly said in 2019 that he’d like to see Congress approve legislation resolving the cannabis banking issue, and he pointed to the fact that IRS has had to build “cash rooms” to deposit taxes from those businesses as an example of the problem.

Read the full test of the new Senate SAFE Banking Act below:

Senate SAFE Banking Act by Marijuana Moment

Colorado Governor Signs Marijuana Social Equity Bill As Lawmakers Vote To Increase Possession Limit

 
 
 

A bill that would allow for legal marijuana sales in Vermont already has strong support in the state Senate, even before the text of the legislation has been formally released.

Half of the chamber—15 senators—has signed onto the draft bill, according to Heady Vermont, a local site that tracks cannabis news.

The full updated version of the FIRST DRAFT of the #VT Senate #cannabis bill will be online later this week; in the meantime we’ll review and share ASAP! #vtpolipic.twitter.com/MsrLuRZDrl

— Heady Vermont (@HeadyVermont) January 23, 2019


The Senate Judiciary Committee released preliminary information about the tax-and-regulate plan earlier this month, and the legislation is expected to be introduced as early as this week.

The panel met on Wednesday to begin discussing details of the proposal.

#VT Senate is discussing the first draft of #cannabis tax and regulate bill that will go to Senate floor this week.

Bill has 15 sponsors (30 total); first draft will be very barebones with many specifics being discussed in committees not the initial bill#vtpolipic.twitter.com/zQGSPnMBSM

— Heady Vermont (@HeadyVermont) January 23, 2019


Currently, adults 21 and older are allowed to possess, cultivate and consume marijuana in Vermont, but retail sales are prohibited. The new bill would establish a commercial cannabis system, impose a 10 percent excise tax on sales and shift regulatory responsibilities from the state Department of Public Health to an independent Cannabis Control Board.

A timeline for the legislation indicates that the law would take effect on July 1 and licenses for retailers and marijuana would be issued by April 1, 2021.

But lawmakers still have their work cut out for them. For example, senators spent some time debating where individuals would be allowed to consume marijuana on Wednesday—at one point considering whether adults could use cannabis in a parked car when they don’t have another viable option.

The serious discussion being had now is if people can smoke #cannabis in parked cars as an option for WHERE to consume… #vtpoli

— Heady Vermont (@HeadyVermont) January 23, 2019


“We’ve been methodical about eliminating every possible place where a tourist or anyone can consume it,” Sen. Philip Baruth (D) said, according to Heady Vermont. “We want people to come here but won’t give them a way to use it when they’re here.”

Another topic of conversation concerned licensing fees. Sen. Dick Sears (D), the committee chair, asked how the state could “prevent a monopoly.”

“That was a concern expressed over the past three years that we not replicate the medical system,” he said, referring to the relatively low number of operators licensed under the state’s current medical cannabis law.

The draft bill also prohibits combining cannabis products with alcohol or tobacco. Vermont beer interests may push for changes to that policy though, according to Heady Vermont.

#VT proposed law would NOT allow #cannabis products to be combined with alcohol or tobacco…

lots of #VT beer support in the room, “that one might come back up in committee” #vtpolipic.twitter.com/wxWGNS6B25

— Heady Vermont (@HeadyVermont) January 23, 2019


While support for the legislation is strong in the Senate, which has on several occasions in recent years already approved commercial marijuana legalization bills, it’s less clear in the House, where Speaker Mitzi Johnson (D) recently said she’s “really torn on it.” Democrats made gains in the chamber during November’s midterms, though, so its chances of passage seem higher than in prior years.

That said, Gov. Phil Scott (R), who signed the state’s non-commercial legalization bill into law last year, has suggested that he wouldn’t sign commercial legalization legislation until he was assured that roadside tests could be used to detect marijuana-impaired driving.

UPDATE: The text of the Senate marijuana legalization bill has now been posted online.

Key Vermont Senate Committee Releases Commercial Marijuana Legalization Bill Details

Photo courtesy of Brian Shamblen.

 
 
 

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