Just days before the New Jersey League of Municipalities Conference held a session on “Marijuana Legalization: A State and Local Perspective,” the National League of Cities passed two resolutions calling for the federal government to reschedule cannabis as well as providing the industry access to the federal banking system.
The NLC, which has more than 1,900 member cities, passed Resolution 1: “Calling to Resolve the Conflict Between State and Federal Cannabis Laws” and Resolution 36: “In Support of Federal Efforts to Ensure State and Local Government Have the Authority to Regulate the Manufacturing, Distribution and Sale of Medical and Adult Use Marijuana.”
MarijuanaMoment.com was the first to report the passage of the resolutions.
Resolution 1 states that “while it does not endorse the use or growth of cannabis, NLC urges the federal government to resolve the conflict between state and federal cannabis laws, and to provide guidance to financial institutions that results in the cannabis market having access to the federally regulated banking system.”
The concern from NLC’s perspective is that the lack of access to the federal banking system “has led to a reliance on ‘cash only’ models that involve the transportation of large sums of paper money through cities, increase the risks of theft crimes and tax evasion, and deny large groups of business owners the capital needed to enter the market.”
The resolution also took the Trump administration to task for rescinding the Cole Memo in January, adding “the federal government has rescinded guidance that previously provided a minimal level of confidence for financial institutions looking to provide services to this growing industry.”
The second resolution specifically called for the removal of cannabis from Schedule 1 of the Controlled Substances Act.
It urged “Congress to pass legislation that would ensure states and local governments have the ability to establish laws and regulations on the manufacturing, distribution, and sale of medical and adult-use cannabis within the state … calls on the U.S. Department of Justice’s Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Drug Enforcement Administration, and the U.S. Department of Health and Human Services’ Food and Drug Administration to establish federal regulations for the manufacturing, distribution and sale of legal medical and adult-use cannabis.”
The NLC cited the following economic statistics to support its stance:
- The cannabis industry could exceed $24 billion in revenue by 2025.
- For every $1 spent in the marijuana industry, between $2.13 and $2.40 in economic activity is generated.
- The millions of dollars in tax revenues that have been collected in states that have legalized medical and adult-use cannabis provide funding to local police, drug treatment and mental health centers, housing programs, and school programs.
- More than 122,814 jobs have been created in states that have legalized the medical and adult-use of cannabis.