Bipartisan House Members Introduce Legislation to Protect and Support Medical Marijuana Patients and Providers

As U.S. Attorneys seek to push the sale of medical marijuana underground, members of Congress promote a more rational approach with the “States’ Medical Marijuana Patient Protection Act,” the “Small Business Tax Equity Act of 2011,” and the “Small Business Banking Improvement Act of 2011”

WASHINGTON, D.C. – Today, a bipartisan group of legislators introduced three bills to protect and support medical marijuana patients and providers in states where the use of medical marijuana is legal. The first of these bills is the “States’ Medical Marijuana Patient Protection Act,” which would modify federal law so that individuals acting in compliance with state law are immune from federal prosecution. The other two bills, which address banking and tax issues faced by medical marijuana providers, are the first two bills in the history of Congress to protect and advance the interests of medical cannabis businesses.
 
Rep. Barney Frank is the lead sponsor of the “States’” bill, which has garnered bipartisan support in past sessions of Congress. Rep. Pete Stark (D-CA) and Rep. Dana Rohrabacher (R-CA) are the lead sponsors of the “Small Business Tax Equity Act of 2011,” which would amend Section 280E of the Internal Revenue Code so that medical marijuana providers can take standard business deductions like any other business. The “Small Business Banking Improvement Act of 2011,” sponsored by Rep. Jared Polis (D-CO) and Rep. Ron Paul, would allow financial institutions to work with medical marijuana businesses without the fear of running afoul of federal banking regulations.

These bills have been introduced at a time when the nation is witnessing a strange reaction by U.S. Attorneys to the development of state-regulated systems of medical marijuana distribution. In October 2009, the Department of Justice issued a memo to federal prosecutors, instructing them to de-prioritize the prosecution of individuals acting in compliance with state medical marijuana laws. This has given states like New Mexico, Colorado, and Maine the ability to establish tightly regulated systems. Yet, some U.S. Attorneys, faced with the prospect of sensible regulations being established in other states, have issued misleading and threatening letters to sidetrack legislative and administrative progress.

“We are pleased that this bipartisan group of legislators has come together on behalf of patients and their providers at this important time,” said Rob Kampia, executive director of the Marijuana Policy Project. “There is clear evidence that statewide systems of medical marijuana regulations can be extremely effective in controlling the distribution of the medicine and serving the needs of patients. The U.S. Attorneys should heed the advice of Rep. Frank implicit in the introduction of this bill. That is, it is time for the federal government to get out of the way and let states enact and carry out the policies they believe will be best for the patients and citizens of their states. That includes allowing those involved in distributing marijuana to patients within the confines of state law to operate like any other legitimate business.”

Currently, 16 states and the District of Columbia allow the use of medical marijuana, and many more states are considering legislation to permit similar programs.