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Democrats Move to Decriminalize Cannabis; DOJ Seeks to Reschedule

May 7, 2024

In separate efforts last week, key Senate Democrats reintroduced legislation to federally decriminalize marijuana while the Department of Justice started the process of loosening federal restrictions on the drug.

Why it matters: Federal law prohibits any use of cannabis even though 38 states allow medical use and 24 states have legalized some recreational use. The federal moves are two potential paths to removing the federal and state law mismatch.

Go deeper: The legislation introduced is similar to a 2022 bill that would legalize cannabis at the federal level and set up a system to tax and regulate its production and use. Senate Majority Leader Chuck Schumer (D-NY), Sen. Cory Booker (D-NJ), and Sen. Ron Wyden (D-OR) are the lead sponsors of the bill along with 15 Democratic co-sponsors.

• While Schumer’s support is key, the path to federal legalization will be challenging in an election year and with many key Republican senators still skeptical of full legalization.
• Schumer is still pursuing incremental steps, including the SAFER Banking Act that would create a safe harbor for financial institutions to serve state-authorized cannabis businesses.
• Last week, Politico reported that Schumer hoped to add SAFER Banking to the Federal Aviation Administration reauthorization bill.
• Minority Leader Mitch McConnell (R-KY) remains opposed to the cannabis banking bill, which makes it unlikely it will hitch a ride on the FAA reauthorization.

Yes, but: The post-election lame duck session could be another opportunity to pass cannabis banking along with a variety of year end packages. McConnell is on his way out as GOP Senate Leader and may defer to his successor on those negotiations.

Meanwhile, news outlets reported last week that the Department of Justice began a lengthy process to reduce federal restrictions on cannabis through regulation.

• The move to reclassify or “reschedule” marijuana from the most restrictive Schedule I to Schedule III under the Controlled Substances Act would ease many restrictions on it and possibly pave the way for some broader legal use.
• Even if cannabis is reclassified as Schedule III, the Food and Drug Administration would need to approve cannabis for medical use to receive federal blessing.
• The reclassification alone would not make marijuana legal at the federal level, as discussed in a Congressional Research Services report:

“Moving marijuana from Schedule I to Schedule III, without other legal changes, would not bring the state-legal medical or recreational marijuana industry into compliance with federal controlled substances law.”

The bottom line: Rescheduling cannabis may move the needle toward greater federal acceptance, but Congressional action is needed to provide legal clarity for state-authorized cannabis regimes.

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Global ESG Practitioner Survey Results Published

May 7, 2024

According to the 2024 ESG Practitioner Survey by Workiva, an international consulting firm, over 80% of companies not subject to the EU’s Corporate Sustainability Reporting Directive (CSRD) still intend to comply. The survey polled more than 2,000 people involved in ESG reporting from organizations across North America, Europe, and Asia.

Additional key findings include:

• 87% of respondents find it challenging to adapt reporting processes to comply with new regulations;
• 88% believe that assurance over ESG data increases the likelihood that a company will achieve its goals;
• 98% say they are confident in the accuracy of their ESG data, but 83% also believe that collecting accurate data to fulfill the CSRD requirements will be challenging; and
• 88% of practitioners say that having a strong ESG reporting program will give their organization a competitive advantage.

Why it matters: The survey’s findings also reflect the reality for U.S. companies, since the EU’s recently passed Corporate Sustainability Due Diligence Directive (CSDDD) “will require thousands of companies, both inside and outside of the EU, to integrate human rights concerns and environmental impacts within their governance.”

However, the survey found that 78% of practitioners are concerned with their organization’s ability to collect and share information with other organizations in their value chain.

Finally, according to survey results, organizations that don’t adapt, “will struggle to absorb the additional workload required to comply with the CSRD, CSDDD, SEC climate disclosure rule, or standards established by the International Sustainability Standards Board (ISSB).”

CREFC recently circulated its 2024 Sustainability Survey among membership and is currently analyzing the results. Stay tuned for the report.

Please contact Sairah Burki (sburki@crefc.org) with questions.

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Greene Plans Motion to Vacate Vote on Speaker Johnson

May 7, 2024

What’s happening: Rep. Marjorie Taylor-Greene (R-GA) is not backing down from her pledge to hold a motion to vacate vote on Speaker Johnson. Greene has pledged to force the vote sometime this week.

In recent months, Rep. Greene has repeatedly stated that Speaker Johnson should be removed from the speakership. Her main grievances against him include:

• A bipartisan government funding deal he negotiated with Democrats in March.
• Foreign aid funding packages for Ukraine, Israel, and Taiwan.
• Re-authorization of the U.S. warrantless surveillance powers.

She is currently joined by Rep. Thomas Massie (R-KY) and Paul Gosar (R-AZ) in her bid to remove Johnson. They believe that Speaker Johnson has been too willing to work with Democrats and is undermining their power in the majority.

Rep. Greene had this to say about the planned vote:

“Every member of Congress needs to take that vote,” she said. “I can’t wait to see Democrats go out and support a Republican Speaker and have to go home to their primaries. … And I also can’t wait to see my Republican conference show their cards and show who we are.” 

Meanwhile, Speaker Johnson retains the most important endorsement of all, former President Donald Trump. Trump said in early April, 

“We have a speaker. He was voted in, and it was a complicated process. And I think … it's not an easy situation for any speaker. I think he's doing a very good job. He's doing about as good as you're going to do.”

Johnson’s standing: The politics of this moment are unique, as Speaker Johnson is only seven months into his term after replacing Speaker Kevin McCarthy.

• The effort to oust Johnson is likely to fail since Democrats in recent days have pledged to save him if Greene follows through on her plan.
• Democrats have specifically pledged to table the “motion to vacate,” preventing the vote to oust Johnson from ever reaching the House floor.

This development makes the effort to oust Johnson a moot point but it is a significant moment for procedural and political reasons:

• For Greene to fully execute her plan, she would need “a motion to vacate” to first reach the House floor and then pass it by a simple majority.
• If passed, it would immediately remove Johnson from the speakership as it did to Speaker Kevin McCarthy in October.
• By supporting the motion to table, Democrats are pledging to stop the motion from ever reaching the House floor, thus saving Johnson’s speakership.

Tabling the motion, or not voting against it, allows Democrats to protect the Speaker while not casting a vote for Mike Johnson. A vote for Johnson could be politically radioactive for Democrats and the Speaker.

• However, if Johnson’s speakership is preserved by procedural support from Democrats, this could hurt his standing within his own party and possibly embolden other Republicans to further voice their frustrations with him.

The bottom line: The drama surrounding the vote could portend power struggles in the next Congress, if the GOP maintains a narrow majority.

Rep. Greene for her part had this to say about Speaker Johnson’s future, in an article published by Real Clear Politics:

Greene told RCP last month that Johnson is “not going to be Speaker under President Trump,” especially after he helped muscle through an appropriations bill funding the Department of Justice now prosecuting the former president – or as she put it, “after he funded for President Trump to go to jail.”

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