Navigating the Cannabis Landscape: Federal Cannabis Reform Outlook for 2024

A month into 2024, Congress is (still) grappling with a number of urgent, must-pass bills related to issues like border security, aid for Ukraine and Israel, and the federal budget. At a time when the government seems more dysfunctional than ever, it’s important to remember that this chaos results in cannabis issues (and unfortunately, many others) having difficulty in gaining traction in Congress. As a result, cannabis legislation and priorities have been slow moving so far this year- but I feel confident that there’s light at the end of the tunnel!

SAFE Banking 

To recap: the ever-elusive SAFE Banking Act was reintroduced in 2023 by Senators Jeff Merkley (D-OR) and Steve Daines (R-MT) alongside Representatives Earl Blumenauer (D-OR) and Dave Joyce (R-OH). Soon after, the Senate Committee on Banking, Housing, and Urban Affairs held a hearing titled “Examining Cannabis Banking Challenges of Small Businesses and Workers” discussing both the bill and the topic of cannabis banking broadly. 

As the momentum for SAFE Banking increased, so did some Senators’ concerns– primarily surrounding a provision that would bar federal banking regulators from taking discriminatory enforcement action against any industry. 

As a result, an updated version of the bill called the SAFER (Secure and Fair Enforcement Regulation) Banking Act was introduced, marked up by the Committee, and passed out of Committee by a vote of 16-14 in late September 2023. 

That brings us to 2024. Although SAFER has not been scheduled for a floor vote yet, NCIA is cautiously optimistic on its chances this year — whether that be as a standalone bill or attached to another larger financial services related package. That being said, the bill will undoubtedly face an uphill battle no matter how it arrives at the GOP-controlled House of Representatives.

Other Congressional News

Outside of SAFE(R) Banking, there has been some additional congressional cannabis news in 2024 including a Senate letter urging descheduling, a bicameral letter regarding Chinese-related illicit grow operations, and a new Congressional Research Service (CRS) report on the impact of moving cannabis from Schedule I to III in the federal Controlled Substances Act.

In late January, Senators Elizabeth Warren (D-MA) and John Fetterman (D-PA), led nine of their Democratic colleagues (including Senate Majority Leader Chuck Schumer [D-NY]), in sending a letter to Attorney General Merrick Garland and Drug Enforcement (DEA) Administrator Anne Milgram. The letter urged Milgram and Garland to remove marijuana from Schedule I of the Controlled Substances Act entirely, commonly known as descheduling. 

Then, just days ago, Senators Joni Ernst (R-IA) and Angus King (I-ME) alongside Congressmen Pete Sessions (R-TX), Jared Golden (D-ME), and David Valadao (R-CA) led 48 of their colleagues in calling on Attorney General Merrick Garland to prevent any national security risk and end any illicit human trafficking connected to Chinese-linked marijuana farms in the United States. 

In the bipartisan, bicameral letter, the lawmakers pointed out that Chinese nationals (some with potential ties to the Chinese Communist Party), are operating marijuana farms across the country and even potentially engaging in human and drug trafficking in conjunction with these operations. The lawmakers asked the Department of Justice for a briefing on the topic by the end of the month and posed several specific questions for the agency. 

In mid-January, the Congressional Research Service (CRS) released a new report titled “Legal Consequences of Rescheduling Marijuana” that primarily focused on “Legal Consequences If Marijuana Moved to Schedule III” and considerations for Congress. CRS works for members of Congress and their committees and staff on a confidential, nonpartisan basis and is highly regarded here in Washington, D.C. 

Biden Administration

In 2022, the Biden Administration announced that it would ask the Secretary of Health and Human Services (HHS) and the Attorney General to initiate the administrative process to review how marijuana is scheduled under federal law. 

As a result, in August 2023, news broke that the Department of Health and Human Services (HHS) recommended to the Drug Enforcement Administration (DEA) that cannabis be rescheduled and placed in Schedule III, meaning that it has moderate to low abuse potential, a currently accepted medical use, and a low potential for psychological dependence. Since then, the DEA has been conducting their review of where marijuana should be placed in the Controlled Substances Act, which will then be followed by a public comment period. 

To be clear, NCIA supports ending the criminalization of our industry by removing cannabis (including THC) from the federal Controlled Substances Act altogether so that our businesses are treated like all other lawful American businesses. That being said, it’s likely that the DEA will follow the HHS recommendations and choose to place marijuana in Schedule III.

While NCIA continues to draft our response to the inevitable announcement — whatever it may be — we also want to hear from our members about their views on this critical issue. If you are a member of NCIA, check your inbox for a link to our online survey in order to make your voice heard. If your business isn’t yet a member but you want to get off the sidelines of the cannabis reform movement, join today!

NCIA is proudly the only organization focused on representing independent businesses in our nation’s capital and the work we do moving policy reforms forward is only possible because of the hundreds of businesses that make up our membership.

It goes without saying that 2024 is shaping up to be a big one for federal cannabis policy reform. Stay connected and engaged by attending one of our upcoming Stakeholder Summits where you can engage and learn from state officials, federal policymakers, and even me!

If you really want to play a bigger role in advancing cannabis policy reform, we hope you’ll also join us in Washington, D.C. for our 12th Annual Cannabis Industry Lobby Days this May. See you there!

SAFER Banking Act Clears Senate Committee

NCIA (and myself personally!) have been talking about the SAFE Banking Act for years

After the Senate Banking Committee’s hearing on the topic of financial services and the cannabis industry in May, it became clear that in order for the bill to continue on in the legislative process and receive a markup that changes to a few sections needed to be made. 

As a result, a slightly new (and improved?) version of the bill was introduced as the SAFER (S. 2860: Secure and Fair Enforcement Regulation) Banking Act last month. Most of the changes in the bill pertained to Section 10, which bars federal banking regulators from taking discriminatory enforcement action against any industry (not just cannabis). 

Once SAFER was formally introduced, the Senate Banking Committee announced that a markup was scheduled for September 27. It’s important to note that this was the first time ever that a Senate committee held a markup on a pro-cannabis bill. 

During the markup session, multiple amendments were offered. The first, offered by Chairman Brown (D-OH) was what’s known as a “manager’s amendment” and primarily made technical changes to the bill. That amendment also made changes so that the Treasury secretary would be given one year (instead of 180 days) to issue updated guidance to financial institutions that work with cannabis businesses that was first released during the Obama administration in 2014. It also stipulated that federal home loan banks are now included under a list of financial institutions that would be protected from being penalized by federal regulators simply for working with state-legal cannabis businesses.

Another amendment, from Sen. Warnock (D-GA) would have created a 5-year sunset for the legislation unless a report from the Treasury Department certified that it had decreased the racial wealth gap and ameliorated other negative economic impacts of the war on drugs. This amendment ultimately failed. 

Additionally, amendments from Senators Hagerty (R-TN), Rounds (R-SD), Crapo (R-ID) were also offered but were ruled out of order, withdrawn, and failed, respectively.

Republican members of the committee voiced concern that the bill allowed for financial institutes to utilize reputational risk to de-bank certain accounts they do not align with ideologically and argued that no financial regulator should be able to pressure any financial entity to refuse to provide service to a lawful entity.

Some Democrat members, particularly Sen. Warnock (D-GA), voiced concern that the bill does not adequately address the disproportionate impacts of marijuana criminalization and its exacerbation of the racial wealth gap in the United States. Other members of the committee encouraged amendments and future legislation intended to improve the quality of life for those most negatively impacted by marijuana criminalization in addition to creating safer conditions for banks and other financial institutions. Sen. Warnock was the lone Democrat who voted “No” on the bill during the markup. 

Ultimately, the bill passed out of the committee markup by a bipartisan vote of 14-9. This sets the stage for a full Senate floor vote, which Majority Leader Schumer (D-NY) has committed to scheduling as soon as possible, with the possibility of adding the HOPE and GRAM Acts to the bill before passage.

I don’t know about you, but I’m not done making history yet! Stay tuned for the latest on the SAFER Banking Act and how you can help get the bill passed! 

Committee Blog: Banking in the Cannabis World

By: Shawn Kruger, Avivatech
Contributing Authors: Paul Dunford, Green Check Verified | Todd Glider, MobiusPay Inc. | Kameron Richards, Kameron Richards Esq.
Produced by: NCIA’s Banking & Financial Services Committee

The Landscape

With recreational marijuana legalized in 23 states, Washington D.C. and Guam, the public continues to broadly favor legalization for medical and recreational purposes. Why then, is it still a challenge for the cannabis industry to access financial services? The short answer: cannabis banking is risky for financial institutions (FIs), and bankers are committed to avoiding unnecessary risk. Historically, FIs have worked to keep funds associated with illegal activity out of their banks and credit unions, so FIs are sensitive to conflicting state and federal cannabis laws. For example, many FIs are regulated by federal agencies, but marijuana is a Schedule I controlled substance.

Navigating the Challenges

However, there are many banks and credit unions that have taken this risk for a variety of reasons, including creating new sources of income, a desire to serve the unbanked in their communities, and supporting the social equity initiatives in the cannabis industry. These FIs are usually discreet about their cannabis banking programs, and it’s often hard to identify them through your typical approach: prowling websites, Google searches or even trade shows (although this has improved over the past 12 to 18 months). 

Fortunately, the best approach is also a well-trusted option: word of mouth. Contact lawyers, accountants and bookkeepers in your area. If they represent or work with other local marijuana related businesses (MRBs), they may know who they are banking with or know someone who does. You should also consider contacting the FIs directly, even if you don’t know if they are working with MRBs. You might be surprised to find that they do, and if they don’t, they might redirect you to another FI in the area. Finally, organizations like the PBC Conference team, provide resources to aid your search, including a Cannabis Banking Directory published annually.

Focus your search on credit unions, community banks, and regional banks. We are entering a new phase of cannabis banking with some FIs offering more than just a place to park your cash. A growing number now offer loans, payroll services, business insurance, etc., so take time to see what’s available, compare multiple FIs’ programs, and find the best match for your cannabis-related business’ (CRB) needs. 

Be Prepared

Every action taken by an FI, regardless of their location or asset size, is closely scrutinized by state and federal banking regulators, and law enforcement agencies. They want to make sure that banks and credit unions are only working with legitimate and legal state CRBs. Therefore, you can expect an FI to require a combination of the following:

  • Driver’s license or other acceptable state-issued identification for all account holders
  • Information on all beneficial owners of the company, not just those who own a percentage of the company above a certain percentage threshold (such as 20%)
  • Tax returns for the previous year for both the company and the beneficial owners
  • Financial information such as profit and loss accounts and capitalization tables
  • A copy of any required state licenses
  • Operational data such as projected annual sales and number of patients/customers
  • Corporate formation documents such as articles of incorporation and business plans
  • Sales transaction data (store reports or invoices) for the past thirty days

Behind the scenes of cannabis banking, FIs must do a lot to ensure that they are onboarding only legitimate CRBs; from collecting and analyzing market transactions to conducting reporting. This means that FIs often have additional staff to fulfill their compliance duties and they invest in software to automate some of their monitoring. FIs invest heavily in banking cannabis and account fees help offset those expenses. This means you can expect to pay account setup fees and monthly account maintenance fees to help cover these costs. Prices have come down in recent years. The days of paying $5,000 per month for an easy deposit account are long gone, but the fees will remain high as long as a lot of oversight and reporting falls on FIs.

Embrace the Journey

FIs are far savvier about detecting MRB activity among their existing customer/member accounts. At this point, it’s not a question of “if” your FI will find out you’re an MRB, but when. Few things are more disruptive to a business than getting a letter from your FI informing you that your account will be closed in thirty days. Don’t put yourself in that position.  Additionally, you may be missing out on vital financial and business services by staying “under the radar” and not having a transparent relationship with a bank or credit union.  Start looking for a cannabis-friendly bank or credit union today!

Member Blog: The Evolution of Cannabis-Friendly Banks and Credit Unions

If you are a cannabis-related business (CRB) looking for banking services, that search is becoming less demanding. With the U.S. cannabis market expected to exceed $70 billion by 2030, financial institutions are increasingly becoming aware of the opportunity to boost their bottom lines, while supporting the safety and economic development of their local communities. As friendlier cannabis banking legislation emerges from Washington, D.C., we expect to see thousands of financial institutions actively serving the industry, up from the approximately 250 banks and credit unions serving the industry today.

Early on, smaller credit unions were among the most prevalent pioneers in the industry. Even today, most banks and credit unions that are cannabis-friendly are less than $1 billion in size. That trend is changing rapidly, though, and with it, an increased level of sophistication is supporting the cannabis ecosystem. In fact, at least two banks with assets larger than $50 billion on the East and West Coast respectively have entered the market and by all accounts, have booming portfolios.

When looking for a banking partner, CRBs should consider a few key questions:

  • Does the bank or credit union have an existing cannabis portfolio?
  • What are the fees for service?
  • Can the financial institution provide ACH services for business-to-business transactions?
  • How does it handle cash deposits?

Deposit taking is the primary focus of cannabis-friendly financial institutions however there is activity in a few key areas relevant to the industry.

Lending

Fast-growing industries like cannabis are always in need of growth capital, and the banking sector has been slow to fill this void. The exception to this is in mature markets (such as Oregon, Colorado, and Massachusetts) where banks and credit unions in search of low-cost deposits are increasingly offering lending to attract legal cannabis operators to their institutions. While interest rates are still higher than typical business loans and generally require personal guarantees, the advent of cannabis lending is a welcomed relief to founders and others who have historically had to part with equity to meet capital needs.

Fortunately, lending is increasingly becoming mainstream. By our estimates, 50 or so banks and credit unions have opened their wallets in this regard, with most of the lending activity tied to commercial real estate. Equipment financing has also become more prevalent, and operating lines of credit are extended rarely to those firms with deep operational experience and more substantial balance sheets.

Payments

Until federal legalization occurs, the payments space will continue to include workarounds created by fintech entrepreneurs and others. ACH wallets tied to loyalty programs are often seen in medical markets, and until the end of 2022, cashless ATMs had widespread adoption on the adult-use side.

Most recently, PIN-based debit solutions running on the regional debit rails are gaining traction, and these options pass compliance hurdles that were not present with cashless ATMs. With their advent, merchants are also seeing an increase in sales of 20% or so as compared to cash-only environments.

Access to banking and financial services in the cannabis industry has come a long way in the last decade yet has a long way to go. There is a real advantage for early movers to provide services and we expect more and more financial institutions to recognize the opportunity and get involved.

Committee Blog: Defining Legal Hemp – It Isn’t Always Simple Math

By: Todd Glider, Chief Business Development Officer, MobiusPay Inc.
Contributing Authors: Paul Dunford, Green Check Verified | Shawn Kruger, Avivatech | Kameron Richards, Kameron Richards Esq.
Produced by: NCIA’s Banking & Financial Services Committee

If you are a cannabis-related business, and are looking to accept credit cards, it is only possible to do so if you are selling a product that is defined as legal hemp by the 2018 Farm Bill. 

 The 2018 Farm Bill provides that:

“The term ‘hemp’ means the plant Cannabis sativa L. and any part of that plant, including the seeds thereof and all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or not, with a delta-9 tetrahydrocannabinol concentration of not more than 0.3 percent on a dry weight basis.”

For the most part, it’s pretty cut-and-dry. Marijuana is a schedule 1 drug. Hemp is not. If your product has less than .3% Delta-9 on a dry weight basis, it’s not marijuana, it’s hemp. And since it’s hemp, it’s federally legal. And since it’s federally legal, it can be purchased with checks, credit cards, or debit cards. Hemp products are, reductively, as incendiary as a stick of butter.

Of course, there is the law and there is how acquiring banks—banks that offer merchant accounts—interpret the law. Across the U.S., there are hundreds of acquiring banks. Of those, only six or seven offer merchant accounts to hemp businesses.

That’s it, plus payment service provider Square.

The immediate problem for the few acquiring banks that have, laudably, said, “Yes,” to hemp is, “how do we distinguish products that are .3% Delta-9 or less (and therefore, yawningly legal) from those that are over .3% Delta-9 (and therefore, illegal as angel dust)?”

Enter the Certificate of Analysis, or COA, or lab report. While there is nothing in the law stating that COAs are required to prove that a product is within the federally legal limit, their role is sacrosanct during the boarding process. For every hemp-derived product, there must be a corresponding COA proving that the product being sold is hemp, and not marijuana. 

Fortunately, there are labs across the nation. The U.S. Department of Agriculture website lists 85, as of May 2023. Manufacturers and businesses ship their samples to these labs. The labs run their tests and the COAs are issued. 

Simple, right?

Not really.

There are no standards in place for these reports. No templates. Every laboratory’s COAs—while substantively providing the same information—look a little different.  Furthermore, most bankers haven’t seen a lab report since high school chemistry, and you’ve got a recipe for confusion or misunderstanding (frequently both).

This COA, when it was initially presented to the bank, was rejected. To the underwriter, it was an open and shut case. 

When the bank opened its door to offering acquiring to hemp businesses, its policy was to reject anything with greater than .3% Delta-9 by weight. 

The top of this COA showed an instance of Delta 9 that read .189%. That passed muster, certainly. However, when he delved further into the analyte detail, he noted additional Delta-9 figures in excess of the .3% limit:

  • 10.368 in the mg/unit cell
  • 1.892 in the mg/g cell

It was not clear to the bank’s underwriter which of the two—per-unit or per-gram—corresponded with the by-weight percentage he was to be mindful of, but both were certainly over the .3% limit.

So, open and shut case: DECLINED

The salesperson that brought the merchant to this bank was surprised by the rejection. He hadn’t looked at the COAs very closely, but it seemed unlikely that this merchant had been selling products on her website that were in excess of .3% Delta-9.

Why? Because if the merchant had been selling products on its website in excess of .3% Delta-9,  it would have been engaging in egregious felony drug trafficking. The salesperson doubted that was the case.

The salesperson did something he didn’t normally do: he took out his calculator.

He wanted to know why it read .189% Delta 9 at the top, but 10.368 in the analyte table. He noted the unit size at the bottom of the page was a gummy weighing 5.480g. 

For the sake of simplicity, he multiplied that by 1000 to convert it to milligrams. That made it 5480 mg

Then he entered the onerous 10.368mg from the mg/unit figure in the analyte table and divided it by 5480mg. The resulting calculation netted the following total: .0018919. 

Next, he converted it to a percent, and found that the result was .189%, which matched the figure at the top of the COA, exactly.

The next day, the salesperson presented the COA to the bank, with the markings and The Equation just as shown here.

It was an open and shut case: ACCEPTED

This situation is an example of why banks and credit unions unknowingly reject compliant hemp businesses from merchant processing solutions. As stated, a simple mathematical calculation was the difference between being accepted or rejected for necessary merchant processing services. Without proper merchant servicing not only are cannabis businesses’ profitability affected because they can only take cash; cash is also not as traceable or auditable as electronic transactions.

In general, businesses providing services to the cannabis industry are often challenged with disentangling legal risks with the benefits of their necessary services providing more transparency. With enhanced knowledge of the cannabis industry and its parameters, the cannabis industry will recognize a greater participation by all businesses necessary for the life of the industry thereby enhancing cannabis businesses’ likelihood to succeed but also enhancing the legitimacy and regulation of the industry.

Summer Recess & Cannabis Progress: Cannabis News from the Capitol and Expectations for the August Break

by Michelle Rutter Friberg, NCIA’s Director of Government Relations

After NCIA’s 11th Annual Cannabis Industry Lobby Days concluded in May, cannabis news from Washington, D.C. has been relatively slow. Curious about what’s next before August recess begins? Keep reading to see what may happen ahead of the break and for a recap on where we’re at now.

SAFE Banking

Last month, just before NCIA’s Lobby Days, the Senate Banking, Housing, and Urban Affairs Committee held a hearing titled “Examining Cannabis Banking Challenges of Small Businesses and Workers”. Witnesses included the bill’s lead sponsors, Senators Jeff Merkley (D-OR) and Steve Daines (R-MT), as well as Ademola Oyefes (International Vice President and Director of Legislative and Political Action Department, United Food and Commercial Workers International Union [UFCW]), Michelle Sullivan (Chief Risk & Compliance Officer, Dama Financial), Dr. Kevin Sabet (President/CEO, Smart Approaches to Marijuana [Project SAM]); and Cat Packer (Vice Chair, Cannabis Regulators of Color Coalition). 

My takeaways from the hearing: no new talking points from Project SAM, surprised by DAMA’s comments (they’ve since walked their testimony [which many saw as opposition to the bill] back), and most importantly of all: the real need for SAFE so that we can stop talking about access to financial services and start talking about legalizing and regulation cannabis in a smart and equitable way. 

As for what’s next? Banking Committee Chairman Sen. Sherrod Brown (D-OH) recently shared that SAFE Banking would be scheduled for a markup after a few other bills received theirs. The good news? That process has begun. The bad news? Still no formal news on when SAFE’s markup will be. I’m expecting it to be after the Fourth of July break but before members leave D.C. for their annual, month-long August recess.

Appropriations 

For years, advocates have looked to the appropriations process as a way in which to enact cannabis reform at the federal level. 

In 2014, a provision that protected medical cannabis patients, programs, and businesses from federal interference (known as the “Rohrabacher-Farr” amendment) was included in the federal budget and became law. Since then, the provision has been included in appropriations bills and remains the law of the land. 

NCIA has (and continues to) lobby on behalf of expanding this provision to include adult-use businesses and to also use the appropriations process to enact other reforms like allowing Washington, D.C. to commercialize adult-use cannabis sales. 

House GOP negotiators heightened the stakes earlier this week when they announced they would mark up their FY2024 spending plans to levels lower than the budget caps set as part of a deal struck between President Biden and Speaker Kevin McCarthy (R-CA). This will undoubtedly make the already contentious budget-process even more volatile.

Maryland

On July 1, adult-use cannabis sales will begin in Maryland. Cannabis became legal for those over 21 in Virginia in 2021, while D.C. legalized cannabis for adults via Initiative 71 in 2014 (but have been unable to begin sales due to congressional interference). Legal sales in the District’s neighboring states means that members of Congress will surely be more exposed to the benefits of regulation.

So, while it’s been relatively quiet in D.C. in June, stay tuned in July for a possible first-ever Senate markup of SAFE Banking! As always, NCIA will continue to advocate on behalf of your business and keep you updated on the latest. 

Member Blog: What Does The SAFE Banking Act Mean for the Cannabis Insurance Landscape? 

by Valerie Taylor, Vice President (National Cannabis Practice Leader), The Liberty Company Insurance Brokers

As an insurance professional and broker who worked with more than 70 cannabis clients, I have seen firsthand how the lack of access to traditional banking services has affected cannabis businesses. The cannabis industry has faced many hurdles since its inception, and access to traditional banking services has been one of the biggest obstacles. This has created significant challenges for cannabis businesses, forcing them to operate on a cash-only basis and creating safety concerns.

The SAFE Banking Act is a necessary step toward creating a more supportive regulatory environment for the cannabis industry. The act would provide greater transparency into financial transactions and encourage more insurance companies to enter the market. This would benefit not only the cannabis clients but also the insurance companies by providing greater coverage options.

The current situation has a significant impact on the life of a cannabis business owner/operator. Banking with a cannabis bank can be expensive, driving down profits. Cashless ATMs and payment processing platforms have costs associated with them, which also drive down profits or are pushed onto the consumer. Additionally, accepting cash increases the risk of theft, leading to the need for expensive security measures. What’s more, investing in an adequate safe is required by insurance carriers, which can also be costly and further drive down profits. Due to the cash-intensive nature of the business, insurance companies offer limited coverage on cash.

Passing the SAFE Banking Act could help solve these issues by providing cannabis businesses with greater access to banking services, which would help them manage their finances more efficiently and effectively. This would also provide greater transparency into financial transactions, making it easier for insurance companies to assess risk and provide coverage options.

Moreover, the passage of the SAFE Banking Act would help create a more supportive regulatory environment for the cannabis industry. The current lack of access to traditional banking services has created significant challenges for cannabis businesses, forcing them to operate in a largely unregulated environment. This makes it difficult for them to comply with regulations and puts them at a disadvantage compared to other industries.

The cannabis industry is still in its early stages, and it requires significant capital to operate. Without access to traditional banking services, cannabis businesses struggle to obtain loans or lines of credit, making it difficult for them to grow and expand. Passing the SAFE Banking Act would provide cannabis businesses with greater access to capital, which would help them invest in their businesses and drive growth.

Finally, passing the SAFE Banking Act would benefit insurance companies as well. By providing greater coverage options, insurance companies would be better able to serve the needs of the cannabis industry. Additionally, the act would encourage more insurance companies to enter the market, which would increase competition and drive down costs for cannabis clients.

Overall, passing the SAFE Banking Act is a necessary step toward creating a more supportive regulatory environment for the cannabis industry. It would provide cannabis businesses with greater access to banking services, help them manage their finances more efficiently and effectively, and provide them with greater access to capital. This would benefit both cannabis clients and insurance companies, and I strongly believe that policymakers should take swift action to support this growing industry.


Valerie Taylor, Producer, Vice President and National Cannabis Practice Leader, The Liberty Company Insurance Brokers

Valerie has over 16 years of experience in the insurance industry with specialized niches in cannabis, real estate, and community associations.  With experience working for companies such as McDermott Costa Insurance Brokers, AmWINS Group, Inc., Commercial Coverage Ins. Agency, and Colemont Insurance Brokers, Valerie has developed a love of helping clients navigate the world of insurance by creating an understanding of the value behind insuring their business. In addition to her professional work, Valerie serves as the CREW East Bay Chair on the Programs Committee, is a National Cannabis Bar Association member, NCIA member, and volunteers in East Bay communities with Richmond Grows Seed Lending Library to show people how to save vegetable seeds and grow their own food. In 2021, Valerie received the 2021 and 2022 CREW East Bay Connections Award and was a nominee for the Elevate 2021 Industry Impact award.

With a drive and passion for helping people, Valerie has gone back to her long-standing roots in the plant medicine industry and uses her unique lens of growing up surrounded by cultivators and sellers to validate her client’s business needs. Valerie strives to break the mold of how insurance and cannabis has partnered together to give back to the community she grew up in. With a strong insurance background and an in-depth knowledge of the cannabis industry, Valerie has been a trusted advisor for over 70 cannabis clients.

For more information on Liberty’s National Cannabis Practice Group, please reach out to Valerie Taylor, Vice President (National Cannabis Practice Leader), The Liberty Company Insurance Brokers. 

 

Equity Member Spotlight – Back to D.C. for Lobby Days

by Mike Lomuto, DEI Manager

For the second time in nine months, NCIA’s DEI Program organized a DEI Delegation as part of our annual Lobby Days on Capitol Hill. 

The DEI Delegation consists of some of the foremost advocates for Social Equity from across the country. Their leadership within their state and local communities, as well as within NCIA’s Committee structure, greatly bolsters the lobbying efforts of our organization as a whole, all year round.

Our Delegates weighed in on the organization’s talking points ahead of the event, and then provided an important perspective on the Hill.  As part of NCIA’s lobbying on behalf of the industry, our members focused on SAFE Banking, 280E Reform, Comprehensive Legalization, Veterans Affairs, and more.

Thanks to TILT Holdings and Evergreen Market for sponsoring this very important initiative. 

As stakeholders in the cannabis industry, it is important that we learn how to also properly advocate for ourselves and for others from diverse communities around the country.

We’ve already begun raising funds for next year’s DEI Delegation. If you want to ensure the return of this initiative, while also receiving year-round recognition, reach out to mikelomuto@thecannabisindustry.org

2023’s Lobby Days DEI Delegation:

Raina Jackson, Purple Raina; DEI Committee Organizer and Policy & Regs Subcommittee Chair
Dr. Adrian Adams, CGO at Northeast Extracts; NCIA’s DEI Committee; M4MM’s NY State Director
Vanessa Valdovinos, HUSH; NCIA’s Marketing & Advertising Committee Organizer
Anthony Jenkins, Next Level Edibles; NCIA’s Cannabis Manufacturing Committee

 

This is your first year as a Delegate. Why was it important to you to participate?

Vanessa:

Participating in Lobby Days allowed me to contribute my personal experiences, expertise, and insights as someone running a small business in a highly regulated market. I wanted to have a voice in shaping legislation related to crucial topics that are important to me like providing an equitable pathway in the cannabis space. By being present at Lobby Days, I could truly contribute to the development of policies that would essentially help shape policies that promote a safe, inclusive, and thriving cannabis industry for the benefit of all.

You were a member of last year’s Delegation. Tell us why you chose to return this year, and how your experience last year influenced your game plan for this year.

Dr. Adrian:

Last year was more about figuring out who in each office was the one driving the cannabis policy car, if you will, meeting them where they were, and schooling them up. This year we did a better job as a small group in each office using each of our bios to tell an impactful story regarding the impact of SAFE Banking and 280E, and tying it to what some offices have done in their home district.

Raina:

It was a wonderful experience to participate in Lobby Days 2023, especially after attending last September for the first time and learning so much. I appreciate that this year’s meetings were extended over two days, following in-person training at the glorious Michael Best Strategies office penthouse.

Like last year, I found that most Congressional staffers are quite open-minded and seek to understand our points of view to correctly convey them to the lawmakers they serve. I learned that we don’t have to agree on every single detail to come to a compromise, especially since the People have spoken and demand some form of safe cannabis access and decriminalization nationwide. Bipartisan efforts must match public opinion.

What were the main takeaways from your experience on Capitol Hill?

Raina:

Most staffers were not familiar with 280E and how it disproportionately burdens cannabis businesses with paying upwards of 50 to 70% of revenue towards federal, state, and local taxes without the tax write-offs other industries enjoy at a 30% standard rate.The new proposed Small Business Tax Equity Act eliminating 280E for cannabis businesses would greatly improve the economic landscape, while still representing a net gain for the national economy. This credit would allow more businesses to stay afloat and continue to pay taxes at a more equitable rate over a longer period. Everybody wins!

Dr. Adrian:

SAFE Banking could potentially happen sooner than I thought if it originates from the Senate side. 

Anthony:

My main experience in Capitol Hill taught me that with planning and footwork, it is possible to reach elected officials, even highly ranked officials like US Senators.  And from the feedback we received from both Democrats and Republicans, most representatives are on board with all 3 (hemp updates, 280e reform, SAFE Banking).

Vanessa:

One of my main takeaways from this experience was the immense value of hearing personal stories that shed light on the diverse perspectives within a highly regulated market. By listening to the struggles and triumphs shared by individuals, I gained a deeper understanding of the challenges we all face on a day-to-day basis. I also realized that by sharing our own truths and insights, we can provide invaluable perspectives that others can learn from. Personal stories have the ability to bridge gaps in understanding and create empathy, which are crucial for the progress of any industry.

Mike:

An important component of Lobby Days is the in-person training session. This year, Reggie Babin provided some great insights. As the former Chief Counsel to Senator Charles Schumer, who worked directly on the Cannabis Administration and Opportunity Act, his words resonated throughout the room and our lobbying efforts over the ensuing two days. One thing that stuck with me is when Reggie compared the ten years it had just taken to get reform through on a non-cannabis issue. That bill had strong sentimental support and near-unanimous public opinion on its side. Given that context, it made it clear that we’re on schedule for SAFE Banking. It also means we need to be pushing on other legislation that may likewise take many years to push through.

He also pointed out how any one conversation that we have could be the one that flips the vote that is the final domino on passing legislation. That’s why our stories are so important.

What did you learn from your experience that you’d like others to know?

Raina:

As NCIA DEI Delegates we must control our own narratives and help illuminate the state of our industry by putting names and faces to our stories and sharing our triumphs and pain points. I’m glad we are revisiting the SAFE Banking Bill, which is vital to public safety and economic growth along the supply chain. It is paramount that the bill is passed in any version initially, with room for amendments to weave PLUS equity initiatives into the fabric. 

Dr. Adrian:

The circle of leaders at the top of the cannabis industry is relatively small and many of those folks attend the lobby days of groups like M4MM and NCIA. Your attendance is good for business as well as for the creation of informed public policy. 

Vanessa:

Another important lesson I learned was the significance of building relationships. Engaging with lawmakers directly and sharing my own personal experiences and insights was a driving force for me. It was inspiring to witness their genuine interest in hearing directly from industry professionals. Establishing meaningful connections with policymakers is key so that our industry is properly understood and represented.

Anthony:

I learned that an impassioned personal message goes a lot further than you think. Which is why we need you next year. Because we need our officials to hear your story, and how these issues affect you, your business, and your family daily.

What’s something you loved about visiting D.C. outside of the Lobby Days activities?

Vanessa:

It was the opportunity to connect with my fellow members on a deeper level that truly resonated with me. During our time together, I had the privilege of hearing their unique personal stories and gaining a deeper understanding of what had motivated them to participate in Lobby Days. These stories were inspiring and just reminded me of the incredible passion and dedication within our community.

The personal stories, the camaraderie, and the bonds we formed have created a network of support and friendship that extends far beyond the event itself. It was a truly special aspect of the trip that I will cherish for years to come.

Dr. Adrian:

Just seeing the unique D.C. cannabis market in action with entrepreneurs like Barry Doyle/Embers and others holding unique events. As Anthony Jenkins from San Francisco put it, “it was like seeing the future of cannabis in the U.S.”

Raina:

I appreciated that this year my group had time between and after meetings to visit D.C. landmarks like the Botanical Garden, the Dr. Martin Luther King Memorial, and the Washington Monument. I even extended my stay to experience the phenomenal National Museum of African American History and Culture.

Anthony:

The botanical garden was dope!

P.S. Something else I’d like to note is that in the weeks leading up to Lobby Days, I embarked on the Equity Workshop Tour, a series of workshops held in four cities, bringing together industry stakeholders, leaders, advocates, and regulators. This experience was highly informative for me to hear all these stories prior to our lobbying work in D.C. It was also great to see some of the same faces that I had seen across the Tour again in D.C!

NCIA Members United in D.C. at Lobby Days! Join Us Next Year!

Photo By CannabisCamera.com

by Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations

Essentially every industry and association with a presence in Washington, D.C. hosts their own lobby days, advocacy days, or fly-ins – whatever you want to call them – where their members come to the Capitol to lobby Congress on their respective industry and legislative issues. 

Thanks to NCIA, the cannabis industry is no different. In fact, just a few weeks ago, more than 100 members of the National Cannabis Industry Association (NCIA) descended upon Capitol Hill for NCIA’s 11th Annual Cannabis Industry Association Lobby Days. Lobby Days are an opportunity to advocate for our industry and tell Capitol Hill staff about the real, lived, on-the-ground experiences that cannabis professionals experience daily. 

Planning 150+ meetings over the course of two days with 100+ attendees and 21 teams is about as easy as it sounds. That’s not to mention the multiple events, a congressional briefing, and training sessions! But that’s exactly what the NCIA team does for our members every spring. At lobby days, NCIA members gather to amplify our message and make their voices heard in the halls of Congress, while simultaneously forging strong relationships with the most influential leaders in the cannabis industry.

With more than 80 freshman members in Congress this session and multiple bills that have yet to be reintroduced, we wanted to focus our efforts on educating new members about the issues the cannabis industry – and the people that comprise it – face regularly. Many of these members and their staff have never heard of 280E, haven’t had to vote on SAFE Banking (yet!), and are on the fence about legalization, while others have never even talked with a cannabis professional. As a result, it was incredibly important to us that we reach out to those offices and provide them with the resources they need to best inform their position on the various policy areas that cannabis touches. 

 

After arriving in D.C., attendees were greeted with a tropical vibe at our welcome reception at Tiki TnT & Potomac Distilling Company. This gave teams an opportunity to meet up ahead of meetings and mingle with other professionals who made the trip. The next day, we all gathered bright and (very) early for our mandatory breakfast training ahead of shuttling to the Capitol grounds for our group photo. At the training, attendees were able to grab a quick bite to eat, drink some coffee, get together with their teams, and get the final “do’s and don’ts” for their meetings. After our training and group photo, our teams split off for their meetings and reconvened at the end of the day for our stunning closing reception. There, attendees debriefed after an incredibly productive day and unwound with beautiful views, some drinks, and a dreamy jazz band. On the final day, attendees began their morning with a Senate briefing focused on SAFE Banking, where they rubbed elbows with congressional staff. Post-briefing, teams broke off for their final meetings, and just like that, lobby days 2023 was a wrap! 

It’s no secret that the cannabis industry is undergoing significant struggles and we’re feeling that squeeze in Washington, D.C. Many companies have downsized and laid off government relations professionals, while others continue to just hope that Congress will pass reform magically. The truth is that lobbying, advocating, and being active in the legislative process are critical to moving our industry forward. Stay tuned for other citizen lobbying opportunities, and take it to the next level by sponsoring NCIA’s 12th Annual Cannabis Industry Lobby Days in 2024!

 

I WANT TO SPONSOR

Long-Awaited Cannabis Bills Introduced

Photo By CannabisCamera.com

by Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations

Over the last few weeks, a number of cannabis bills were introduced in Congress: the long-anticipated SAFE Banking Act and the CLAIM Act were reintroduced in both chambers, while over in the House, the HOPE Act and 280E legislation dropped. Keep reading to find out more about these bills and the chances of them moving forward:

Finally… SAFE Banking

After the SAFE Banking Act failed to pass into law last session, advocates have been waiting with bated breath for the legislation’s reintroduction – with a particular interest in what changes may (or may not have) been made. 

In the Senate, the bill is being led again by Sen. Jeff Merkley (D-OR) and Sen. Steve Daines (R-MT), while the House version is being spearheaded by Rep. Earl Blumenauer (D-OR) and Rep. Dave Joyce (R-OH) – both of whom are chairs of the Congressional Cannabis Caucus. 

While the bill does not contain wide-ranging revisions, there were some changes. These changes include adding language to explicitly apply the bill’s protections to community development financial institutions (CDFIs) and minority depository institutions (MDIs), as well as ensuring that workers and operators in the cannabis industry are able to obtain federally backed mortgage loans. In response to concerns raised by some conservatives, this version also includes changes and clarifications intended to ensure that federal law enforcement agencies are able to fully enforce anti-money laundering statutes against unlawful operators.

NCIA is optimistic that the legislation will receive either a hearing or markup in the coming weeks and looks forward to this bill finally passing the Senate someday soon!

HOPE Act

Also recently reintroduced was the Harnessing Opportunity by Pursuing Expungement (HOPE) Act. First introduced last session, the bill was just dropped by Rep. Alexandria Ocasio-Cortez (D-NY) and Rep. Dave Joyce (R-OH). 

This bipartisan bill aims to help states with expunging cannabis offenses by reducing the financial and administrative burden of such efforts through federal grants. The overwhelming majority of cannabis-related charges are handled by state and local law enforcement and despite the fact that expungement programs for cannabis-related offenses have recently advanced in states and cities around the country, many criminal record-keeping systems are not ready for or able to support these efforts. 

The HOPE Act would address these complications by creating a new grant program under the U.S. Department of Justice, which would be authorized to make grants to states and local governments to reduce the financial and administrative burden of expunging convictions for cannabis offenses that are available to individuals who have been convicted of such offenses under the laws of the State.

CLAIM Act

Yet another bicameral, bipartisan piece of legislation was recently reintroduced: the Clarifying Laws Around Insurance of Marijuana (CLAIM) Act. Introduced in the House by Reps. Nydia Velazquez (D-NY) and Warren Davidson (R-OH) and in the Senate by Sens. Bob Menendez (D-NJ) and Rand Paul (R-KY), the legislation would protect insurers, brokers, and agents from being penalized by federal regulators for providing insurance services to state-licensed marijuana companies.

Assuming that the SAFE Banking Act moves through “regular order” as expected, I would predict that many of the protections in the CLAIM Act get attached to SAFE. This is the third Congress that the CLAIM Act has been introduced.

Small Business Tax Equity Act

Everyone involved in the cannabis industry has heard of 280E, but many people were surprised to learn that legislation addressing the punitive measure was not introduced during the last congressional session. 

That changed a few weeks ago when Congressman Earl Blumenauer (D-OR), along with four of his colleagues introduced H.R. 2643: the Small Business Tax Equity Act, which exempts a trade or business that conducts cannabis sales in compliance with state law from IRC Section 280E. 

Abolishing 280E is one of NCIA’s main priorities, but unfortunately, the chances of this legislation passing standalone is little to none. We will continue to explore other vehicles which 280E reform may be attached to and seek to provide any tax relief we can to the legal cannabis industry. 

The last few weeks have been a whirlwind of activity here in D.C. – and we don’t plan on slowing down ahead of NCIA’s 11th Annual Cannabis Industry Lobby Days being held on May 16-18! Register today so that you’re a part of our virtual training sessions and we can begin planning your lobbying experience. 

 

NCIA Today – Thursday, April 6, 2023

Join NCIA Director of Communication Bethany Moore for an update on what’s going on with NCIA and our members. This week we discuss 13 women scientists you NEED to know, our recent podcast check-ins with members of the New York State Office of Cannabis Management, discuss a recent letter NCIA sent to the Congressional Banking and Finance Committees, and look forward to the remainder of our city events coast-to-coast leading up to Lobby Days in May.

 

A Unified Cannabis Industry Voice in Washington

Photo By CannabisCamera.com

by Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations

When I first started at NCIA nearly nine years ago, there were a lot less people lobbying for cannabis reform on Capitol Hill. As our industry has grown and expanded, so has the government relations presence in D.C., but that also means that unification and coordination has become more difficult. New trade organizations have been created, individual companies with competing interests have hired their own lobbying firms – it’s a lot to keep track of! As a result, one of the things we’ve heard most from Capitol Hill staffers is that a unified voice would be incredibly helpful when trying to get legislation over the finish line. 

So, NCIA got to work to make that happen, convening a working group comprised of the trade organizations in the cannabis space we work closely with on the Hill. In the following weeks, we sent a unified industry letter on SAFE Banking and hosted a briefing and reception for freshman members and staff on Capitol Hill. 

Industry Letter 

On March 21, NCIA, along with the National Cannabis Roundtable (NCR), United States Cannabis Council (USCC), Minority Cannabis Business Association (MCBA), and National Hispanic Cannabis Council (NHCC) sent a letter to Senate Banking Committee Chairman Sherrod Brown (D-OH) and Ranking Member Tim Scott (R-SC) calling on them to act to address the continued lack of equitable access to banking and capital for cannabis related businesses and expeditiously take action on the bipartisan SAFE Banking Act upon its reintroduction. You can read the full text of the letter here

Just a day later, the American Bankers Association (ABA) Washington Summit was held. Chairman Brown said, “Prognosis is positive… I’m hopeful we can do it [SAFE Banking] relatively soon.” Ranking Member Scott also spoke about the importance of moving the bill forward through “regular order” while reiterating that he doesn’t necessarily support the legislation himself. Scott, who is running for president in 2024, also said that cannabis reform broadly is, “something that we’re going to have to wrestle with as a nation and as a Congress and get to an answer there.”

Looks like the Senators agree with our letter! 

Freshman Briefing and Reception

As lobbyists, one of our biggest jobs is educating members of Congress and their staff about the issues facing our industry and how to address them. That can be difficult, however, there’s 535 members of Congress and a lot of staff turnover (not to mention elections every two years!). 

To combat this, NCIA, NCR, USCC, and the American Trade Association for Cannabis and Hemp (ATACH) came together to host a briefing on Cannabis 101 for freshman members of Congress and their staff. This is the first time that all of the major trade organizations have come together to host an event like this and it was incredibly well received. Former Colorado Senator Cory Gardner (R) even said to me personally how remarkable the coalition was!  

The briefing included messages from all four members of the Congressional Cannabis Caucus, panels on “Incremental Approaches & Comprehensive Reform” and “Current Operational Landscape Potential & Challenges” as well as a fireside chat between Rep. Troy Carter (D-LA) and Sen. Gardner. 

Following the briefing, a reception was held in Rayburn Cafeteria where more than 100 Hill staffers and lobbyists mingled to discuss all things cannabis. All of the feedback we received was overwhelmingly positive, with questions about when the next event would be! I made sure to remind everyone that NCIA’s 11th Annual Cannabis Industry Lobby Days would be taking place May 16-18, and that we look forward to visiting their offices and educating them further. 

You won’t want to miss this event – register today and sign up for our newsletter to make sure you continue to get all of the latest information and updates about how to get involved with our work in Washington!

Member Blog: Debit and Credit Card Processing at Your Cannabis Dispensary, Finally

by Stuart Lutterman, Brother Processing Solutions (BPS)

Accepting money for legal and licensed cannabis dispensaries has been like the wild west over the past few years. In the U.S., the banking landscape for marijuana businesses is confusing and can seem flat-out impossible to organize. Because of this, many shops still take cash for most of their payments. In 2023 this should not be the case. The problem is that many dispensaries have no access to debit card processing that allows them to take card sales but with severe limitations. Here we’ll look at some signs it is time to upgrade your cannabis debit card processing provider.

Processing Fees & Rates Per Transaction

The most straightforward item to look at is the processing rates and per-transaction fees for your cannabis dispensary. This has gotten more competitive over the years, with merchant service providers pushing down rates to stay relevant. But the fact remains that many cannabis merchant services have higher rates and more expensive per-transaction fees than what businesses should be paying in 2023.

Long gone are the days of dispensaries and marijuana accessory shops being labeled “high-risk” by banks. We’ve come a long way, but dispensaries are still looked at in an unfair light when compared with traditional business varieties. If you are facing direct deposit times longer than one business day, providing high cash reserves to your processor, and paying anything more than regular processing fees, it’s time to make a change.

Why Offer Credit & Debit Card Processing 

When a patient or customer enters a dispensary to make a purchase, dispensaries that do not have a cashless payment option may find they are limiting the amount of product they can sell. Look at it this way; a patron comes into the dispensary with $80. They plan to spend a total of $80 on cannabis. However, when they get to the counter and see the great options, they think, “I’m here now; why don’t I double up my order and save myself the next trip.” Or they see the menu options and want to try a few varieties, quickly getting over $80. But they only have $80 cash in hand, no ATM nearby, and the dispensary doesn’t have a card-paying option. The dispensary misses out on more business, and the patient or patron is disappointed.

This is the last place we want to find our customers as business owners. If they have a desire and you have the product, you should be able to meet them in the middle and offer additional options for making their purchase. 

The Point Is…

Dispensaries who offer cash-only payment options lose sales, period. How many times have you seen customers in this scenario? They come to your cannabis dispensary and browse the menu. Make a few choices, but when it’s time to pay, a problem, your dispensary only takes cash, and the customer doesn’t have any on them. Don’t leave sales on the table (literally) because you don’t take any form of card payment. POS systems are often free and can be installed easily in a matter of minutes. It also eliminates the need for making cash deposits at the bank or installing a cash management system to keep staff in check. It is a true win-win for dispensary owners and accessory businesses. In 2023, not offering a card payment option is just silly.

Benefits of Changing your Merchant Service Provider

There are a few key reasons to upgrade your processor; let’s take a quick look:

  • get new and better processing rates
  • eliminate per transaction fees
  • upgrade your card reader and touchless payment options
  • allow customers to make larger purchases
  • eliminate cash where possible and streamline the customer experience
  • take higher tickets per customer
  • improve direct deposit time frames
  • increase sales volume and profit margins

Offering customers every available payment option will give them confidence in their cannabis purchases. Therefore making them more likely to return.

Find the right Cannabis Merchant Service in the U.S.

So many merchant services are out there, but few specialize in the cannabis industry. This industry isn’t like others, so it stands to reason that working with a cannabis-specific company makes the most sense. You don’t want to use a big box bank that will look for reasons to pile on fees and moral judgment. Working with a smaller cannabis-focused outfit is something the entire industry should consider.  


Stuart Lutterman is the owner/founder of Brother Processing Solutions (BPS), a family-run business with more than fifteen (15) years of experience in the Merchant Account/Credit Card Processing industry. BPS specializes in all cannabis business varieties from farming, processing, packaging, and sales of both recreational & medical dispensaries as well as Indigenous-owned businesses. BPS works closely with every client, understanding their individual needs, and providing a direct point of contact to financial services across the board. https://BrotherProcessing.com

Dispensaries who offer cash-only payment options lose sales, period. How many times have you seen customers in this scenario? They come to a cannabis dispensary and browse the menu. Make a few choices, but when it’s time to pay, a problem… your dispensary only takes cash, and they don’t have any on them. This problem is so common we shot a commercial about it. 

 

Come Meet Congress – 11th Annual Cannabis Industry Lobby Days

by Madeline Grant, NCIA’s Government Relations Manager

Will you join us as a united front in Washington, D.C. this year?

Hundreds of cannabis industry professionals from all over the country will descend on Capitol Hill this month for the 11th year for NCIA’s Annual Lobby Days. It’s more important than ever before to make your voice heard and advocate for the federal reforms our industry needs to truly thrive.

Whether it’s access to banking for your business, much-needed federal tax reforms, or some of the many other struggles faced by our industry that could be remedied by congressional action, we need you to tell your stories on Capitol Hill with us on May 16-18.

Here’s our top four reasons for you to register today to join us for this exciting and impactful event this year:

New members of Congress

Last November, we saw midterm elections bring in a new class of freshman members of Congress. Many of these new faces replaced the old guard of those with long-standing prohibitionist views toward cannabis. Many of them lean more progressive, which means they are more likely to be friendly toward our issues. This infusion of new blood, new minds, and new perspectives in the halls of Congress can work in our favor.

NCIA’s Lobby Days is the best way to get direct access to some of these offices so we can get off on the right foot with them on our issues. Joining us in D.C. means you will inform and educate these new members of Congress on the struggles we face like tax reform, veterans’ medical access, social equity, and of course, the SAFE Banking Act specifically. How many new co-signers can we get on this bill? Let’s find out together.

Discuss incremental and comprehensive reform 

With new members of Congress come new staffers that need to be educated on cannabis policy reform. In an environment where there are hundreds of issues, it’s important we reach every Hill office. When we descend on Capitol Hill, NCIA members will have the ability to discuss their personal stories in the cannabis space. The government relations team is constantly on Capitol Hill meeting with offices; however, hearing directly from businesses is something special. 

As we are at the beginning of the 118th Congress, cannabis legislation will continue to be introduced and this is our opportunity to get members of Congress on board. It’s all about baby steps; as we educate congressional offices they now have the ability to reach out to NCIA for resources and information. Over the past ten lobby days, NCIA sees a significant increase in co-sponsorship for cannabis legislation.

When we go into meetings the government relations team will provide talking points covering incremental reform; such as SAFE banking and 280E reform. Further, we have the opportunity to gather intel regarding their view on comprehensive reform. We’ve seen bills, such as the Cannabis Administration and Opportunity Act and the States Reform Act. Although these bills have not had any legislative success, it’s important for Hill offices to understand the importance of state and federal conflict for the cannabis industry. 

Meeting 200+ other politically active industry professionals

It’s not a conference — it’s different. There’s no expo floor or panel discussions, just people. And it happens to be some of the most politically engaged leaders of our industry who attend Lobby Days. You’ll rub shoulders and team up with cannabis industry pioneers who have been in the game for years. You’ll learn the “ins and outs” of the Beltway from lobby day veterans who join us every year to advocate for our industry. Hear about it for yourself by watching this re-cap video from last year’s 10th Annual Lobby Days:

Learn how to lobby and take those lessons home

This isn’t our first rodeo, but it might be yours, and that’s okay. Even if you’ve never done citizen lobbying before, NCIA’s government relations team makes it easy by offering training before the event, as well as on-site. We’ll give you materials to help you tell your stories including descriptions of our priority legislation, and background information on the offices you’ll be speaking with. And you won’t have to go it alone! We will team you up with a small group of your fellow cannabis industry peers to navigate the halls of Congress together.

Lobby Days with NCIA will empower you to go back to your home state to advocate on the industry’s behalf. You’ll know what to say, how to say it, and what to expect.

Together, we can make a real difference and push our industry past the tipping point. Hundreds of NCIA members have already registered for this event, so what are you waiting for? Register today, schedule your flight, and book your hotel. We can’t wait to see you there.

Register today for NCIA’s 11th Annual Cannabis Industry Lobby Days.

Lobby Congress with NCIA – Hear From First-Time Attendees

Spring is almost here, and NCIA’s 11th Annual Cannabis Industry Lobby Days are just two months away!

Over the past decade, NCIA members have made real, measurable progress moving the dial for cannabis policy reform. Year after year, our industry continues to gain support from members of Congress on both sides of the aisle on crucial issues like banking access, 280E reform, and federal de-scheduling.

It’s not a matter of IF, it’s a matter of WHEN and HOW. Lobby Days is YOUR opportunity to make sure federal legalization is favorable to main street cannabis.

This is the most important cannabis event of the year, so you don’t want to miss this opportunity to join your industry peers in the halls of Congress. Be sure to REGISTER NOW to join NCIA members to advocate for the issues most important to small cannabis businesses and to share your personal stories with national lawmakers who need to hear from Main Street Cannabis now more than ever.

NCIA’s 11th Annual Cannabis Industry Lobby Days

May 16-18, 2022
Washington, D.C.

REGISTER NOW

Never lobbied Congress before?
Hear from these first-time attendees of last year’s Lobby Days:

 

Member Blog: How to Navigate the Cannabis Payment Landscape in 2023

With the recent crackdown on cashless ATMs in the U.S. for cannabis payments, dispensaries have been scrambling to find alternatives to this banking system. As more consumers nowadays prefer to pay by credit or debit cards, or another form of digital payment, dispensaries must offer convenient forms of making payments to their customers. But until there is federal legalization in the U.S., the cannabis payment landscape will continue to be marred by complications. This complete guide on cannabis payment processing can help you navigate the hurdles better and set your dispensary up for success with the best digital payment solutions. But continue reading for some quick tips on handling cannabis payments in 2023. 

Reduce Cash Transactions and Risks

Cash may still be king in the cannabis industry, but it comes with many risks. And in this highly regulated industry, compliance must remain the priority for dispensaries. Cash also limits your ability to retarget or upsell to customers. By reducing cash transactions, you can avoid the following risks:

  • Cash theft by robbers, employees, or customers.
  • Mistakes in daily cash counts and accounting.
  • Inventory compliance issues due to untraceable cash.

Encourage the Use of Digital Payments

With digital payments, instant reporting capabilities give cannabis retailers a better understanding of business performance. Also, providing customers with a modern and convenient shopping experience is a competitive advantage in the cannabis industry. There are significant advantages to encouraging the use of digital payments:

  • Improved dispensary experience for customers.
  • Increased safety and security for everyone.
  • Easy Banking, Tracking, and Reporting.

Maximize the Benefits of Going Cashless

The most important benefit of going cashless is that you’ll see a massive increase in sales and revenue. When a customer is not limited by the amount of cash on their person, they always tend to buy more, and budtenders are better equipped to upsell. Most dispensaries using cashless payment solutions witness:

  • Minimum 25% increase in average transaction value.
  • Increased customer loyalty and retention.
  • Overall improved operations with data insights.

Choose a Compliant Payment Solution

There are quite a few cannabis cashless payment solutions out there, but not all can provide you with the enhanced safety, security, and compliance needed for cannabis retail. Ensure that you choose a multichannel payment solution that integrates seamlessly with your cannabis POS and complies with all laws and regulations. A dispensary cashless payment solution must offer the following:

  • PIN Debit Payment: The most compliant solution.
  • ACH Electronic Transfer: No-cost direct payments.
  • Integration with loyalty and gift card programs.

Implement Cannabis eCommerce and Delivery

To provide customers with the most convenient and efficient way to purchase cannabis products, dispensaries should also consider implementing eCommerce and delivery services. This allows customers to browse and buy products online, with the added convenience of home delivery. Implementing such services also helps reduce cash transactions, as customers can pay digitally if you have a compliant cannabis payments solution. 

  • Set up an eCommerce website by using a cannabis-specific eCommerce platform that integrates seamlessly with your POS system.
  • Use cannabis-specific delivery software to set up compliant delivery services or outsource to third-party delivery companies.
  • Dispensaries must have a robust digital payment system that complies with all regulations, which can only be achieved by using a cannabis-specific payment processing system that integrates with your eCommerce platform and POS system.

Bonus Tips

Here are a few more tips for navigating the cannabis payments landscape:

  1. Consider implementing a loyalty program to encourage repeat customers and increase sales.
  2. Ensure that your payment processing system can handle high volumes of transactions to avoid delays or downtime.
  3. Stay up-to-date with the latest regulations and compliance requirements for cannabis payments to avoid any legal issues.
  4. Offer multiple payment options to customers, such as debit and credit cards, ACH transfers, and mobile payments, to provide greater flexibility and convenience.

Conclusion

The cannabis industry is rapidly evolving, and dispensaries must adapt to the changing payment landscape to remain competitive. By reducing cash transactions, encouraging digital payments, and implementing cannabis eCommerce, dispensaries can offer customers a convenient and safe way to purchase cannabis products while complying with state and federal regulations.

Offering the convenience of digital payments increases dispensary profits, enhances the customer experience, and elevates your dispensary business beyond the limitations of cash only. With a truly transparent and compliant cannabis cashless payment solution, you can facilitate faster check-out at your dispensary with simple, frictionless, and secure digital payments. Dive into Cova Software’s free cannabis payments processing guide to learn more. 


Gary Cohen is the CEO of Cova Software, the fastest growing technology brand in the cannabis industry. Cohen’s focus has been driving the company’s overall strategy, including its vision, go-to-market plan, and strategic development. Since joining the cannabis industry in 2016 and launching Cova commercially in 4q17, Cohen has led Cova to dominate the enterprise sector for dispensary Point of Sale, while forging client relationships with hundreds of single-store retailers across North America.

With Cova’s cannabis POS and its excellent integrations with eCommerce and delivery services, the online order automatically pops up for the budtender to tender the sales, and the POS system updates inventory once payment is approved. Cova offers multiple eCommerce solutions to choose from, as per your needs and budget, and you can legally sell cannabis online stress-free while staying compliant with strict government regulations.

Equity Member Spotlight: Checking in on NCIA’s Equity Scholarship Program

by Mike Lomuto, NCIA’s DEI Manager

Three years after the launch of NCIA’s DEI program, we are growing and going stronger than ever. One of last year’s highlights was our DEI delegation that took part in our 10th Annual Cannabis Industry Lobby Days in Washington, D.C., a story we told in this blog, along with many other great and important stories. Now, we are checking back in with a few members to hear about their current progress. 

Why has being a member of NCIA been important to you personally?

Anthony Jenkins, Next Level, CEO:

Cannabis is an amazing plant, and I’m passionate about what it can do. NCIA’s members share that passion, which shows in their advocacy for themselves and the plant.

Michael Diaz-Rivera, Better Days Delivery, Owner/Operator:

I was a 5th-grade teacher before starting this business. Being a member of NCIA has allowed me to network with a diverse set of owners across the business spectrum, whether they are social equity operators, and/or novices like me, or established in the cannabis space for years. NCIA has helped springboard me into spaces where growth is guaranteed!

Helen Gomez Andrews, Co-Founder & CEO, The High End:

Building strong business networks is incredibly important in the cannabis industry – and of course, so is advocacy. With this industry and through communities like NCIA, we have an opportunity to reimagine and restructure how business gets done, what board rooms look like, how workers are treated, how to better respect our environment. Being a member has not only helped me strengthen those networks and provided new business opportunities, but it has provided me more channels towards the advocacy that is meaningful to me and my business’ core values. 

Why is the Equity Scholarship Program at NCIA important?

Anthony Jenkins:

It is EXTREMELY important because most new entrepreneurs don’t have the money to “test” if a program is going to be beneficial for them. The scholarship gives future cannabis business owners a chance to see the true value that comes with being a member, and once they do, they will continue their membership. 

Michael Diaz-Rivera:

Coming from a low-income background and already investing my limited savings 100% into my business, I wouldn’t have been able to participate in NCIA without the scholarship. Not being hindered by my lack of financial resources helped build my confidence in the industry.

Helen Gomez Andrews:

As the founder of a start-up in a regulatory and capital environment with tremendous constraints, the Equity Scholarship Program got me in the door at NCIA, where I otherwise wouldn’t have joined due to the standard price tag. I’ve had a chance to share in, and contribute to, the many different avenues of participation that NCIA offers, make a proper assessment of its impact and properly decide whether or not it makes sense to continue as a member beyond the scholarship period.

What has been your biggest highlight of being an NCIA member?

Anthony Jenkins:

My biggest highlight of being an NCIA member was attending the NCIA’s San Francisco conference in 2021. It was an amazing experience, and we had the opportunity to have a booth, hosted by the awesome team at The People’s Dispensary.

Michael Diaz-Rivera:

My biggest highlight has to be our weekly power hours. Whether learning from industry leaders or having real unapologetic conversations with other emerging business owners, I am walking away from these meetings with priceless jewels of wisdom.

Helen Gomez Andrews:

There are so many! But bringing my kids down to Washington, D.C. for Lobby Days in 2022 was such a highlight. My daughter, who has been a cannabis patient since she was 6 years old, watched as I took a team photo in front of the United States Capitol with a group of people that came together to fight not just for SAFE Banking, but for the federal legalization of a medicine that she uses daily – fighting for her rights and kids just like her – is a moment that our family will never forget.  

Have you noticed a shift in Diversity, Equity, and Inclusion at the NCIA since you joined, and if so can you elaborate?

Michael Diaz-Rivera:

I don’t know if I’ve been in NCIA long enough to notice a shift in DEI, but I can say that it isn’t hard for me to find a BIPOC leader within NCIA who shares experiences similar to mine. That has made this a motivating and pleasurable experience.

Helen Gomez Andrews:

I haven’t been a member long enough to notice a shift, but the diversity of the community was noticeable and very appreciated from the onset, and it’s very tangibly not just a talking point. 

What is on the horizon for your business in 2023?

Next Level Edibles

Anthony Jenkins:

Next Level has some great things on the horizon. We entered into a partnership with a team in Southern California that will help us increase the quality and efficacy of our infused brown sugar. We are growing our partnerships with dispensaries and delivery services throughout California to broaden our footprint. We are relaunching our website. We will be launching new infused ingredients, and partnering with some of our friends in the industry to bring you amazing infused ready-to-eat products. 

Michael Diaz-Rivera:

There is much to be anticipated in the near future for Better Days Delivery and that is why we say, “Better Days Are On The Way.” Most immediately I am excited to announce that I am hiring my first delivery driver and adding more vehicles to my fleet. As I aim to be the best cannabis delivery service in Colorado, I am working to establish contracts with dispensaries throughout the state, nurture the stores I currently deliver for (Shoutout to Native Roots and L’Eagle Services), empower my drivers to be their best, all while serving the community!

Helen Gomez Andrews:

At long last, The High End is on track to introduce our clean-extracted and hand-crafted cannabis products to the Massachusetts market, partnering with independent sun-grown and living soil cultivators and processing in our solventless lab. Our indoor living soil gardens are finally in development too and will be ready to go closer to the end of this year. 

Additional thoughts?

Michael Diaz-Rivera:

Thank you Tahir Johnson for starting this program and Mike Lomuto for taking it to the next level. Infinite gratitude to all of my fellow business owners that have helped me to get to this point in my business journey! The Marathon Continues! Better Days Are On The Way

Helen Gomez Andrews:

Immense gratitude to Mike Lomuto for understanding each of our goals in business and advocacy, and ensuring we can contribute to issues that matter to us beyond the obvious DEI work. Without question, DEI advocacy is vital, but we amongst the equity scholars have a diversity of other goals as well. In particular, I’d like to thank Mike for championing Sustainability and organizing a group of members from a working group into an influential body within NCIA that has an opportunity to make a meaningful impact.

Video: NCIA Today – Thursday, February 9, 2023

NCIA Director of Communications Bethany Moore checks in with what’s going on across the country with the National Cannabis Industry Association’s membership, board, allies, and staff. Join us every other Thursday on LinkedIN for NCIA Today Live.

 

 

 

 

Bills in Congress, SAFE Banking, and House and Senate Committees

by Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations

While it got off to a slow start, the 118th Congress is finally in full swing. Let’s take a look at some of the latest cannabis and government relations news coming out of Washington, D.C.:

Bills are being introduced

When a new Congress begins, all legislation from the last session must be re-introduced and start from scratch again in the legislative process. Over the last few weeks, a couple of cannabis bills have been reintroduced: two from Congressman Greg Steube (R-FL) and one from Congressman Alex Mooney (R-WV). 

Rep. Mooney was the first to introduce a cannabis bill for the 118th Congress when he released his Second Amendment Protection Act. Last Congress, a similar bill was filed by the late Rep. Don Young (R-AK) known as the Gun Rights And Marijuana (GRAM) Act. The full text of the new measure is not yet available so it’s unclear what exactly the bill contains, but advocates expect the bill to be similar to the version Mooney introduced in the 116th Congress. Interestingly, although federal law explicitly prohibits all Americans who consume or possess marijuana from purchasing or possessing a firearm, a judge in Oklahoma late last week declared that ban unconstitutional.

Congressman Steube’s two bills were the Veterans Cannabis Use for Safe Healing Act and the Marijuana 1-to-3 Act. The former prohibits the Department of Veterans Affairs (VA) from denying a veteran any VA benefit due to participation in a state-approved marijuana program. For veterans participating in these approved programs, the VA must ensure its healthcare providers both discuss marijuana use with such veterans and adjust treatment plans accordingly and record such use in the veterans’ medical records. The latter bill, the Marijuana 1 to 3 Act, has been introduced by Rep. Steube in past sessions and seeks to do exactly what the title says: reschedule cannabis to Schedule 3 – a reform that would not resolve the federal conflict with the vast majority of state laws with some form of legal cannabis 

A SAFE Bet?

The cannabis industry may have been devastated when Congress failed to pass the SAFE Banking Act last Congress, but we’re not giving up yet! Congressional champions have every intention of reintroducing SAFE in both chambers, but don’t expect the bill to look identical to last session. 

Last week, Senate Majority Leader Schumer held a closed-door meeting with a number of other Democratic Senators to discuss what’s next for the bill. Reportedly, the Senators discussed changing the text of the bill to reflect some of the “SAFE +” language that was negotiated at the end of 2022, including the HOPE Act. It’s currently unclear if the House’s version will be identical.

Committees Finally Seated

It took Congress longer than usual to seat committees this session – particularly in the House – but we now know which members will have jurisdiction over which issue areas. Our friends at Politico put together an extensive list, but some committees I’ll be keeping my eye on include the House Judiciary Committee, the Senate Banking Committee, and the Appropriations Committees in both chambers. 

Stay up to date on the latest congressional cannabis policy by following NCIA on social media, subscribing to our newsletter, and attending one of our upcoming regional events

Video: NCIA Today – Thursday, January 26, 2023

NCIA Director of Communications Bethany Moore checks in with what’s going on across the country with the National Cannabis Industry Association’s membership, board, allies, and staff. Join us every other Thursday on Facebook and LinkedIN for NCIA Today Live.

Descheduling, Decriminalizing, Banking, and More

By Madeline Grant, NCIA’s Government Relations Manager

It’s always an invigorating time on Capitol Hill when a new Congress begins to get to work. The atmosphere is unlike any other; Hill offices are getting situated with their staff, hallways are full of exhilarated constituents, freshman members are finding their footing while moving into their offices, and committee assignments are being finalized. Congressional staffers, members of Congress, lobbyists, constituents, and advocates are back in action. 

As we gear up for the 118th Congress, let’s take a look at some bills that we will see introduced to address descheduling, decriminalizing, and banking legislative efforts for the cannabis industry.  

The Cannabis Administration and Opportunity (CAOA) Act

The long-awaited CAOA was unveiled last congress by Senate Majority Leader Chuck Schumer (D-NY), Senator Cory Booker (D-NJ), and Senate Finance Committee Chair Ron Wyden (D-OR). The comprehensive legalization would end federal prohibition by removing cannabis from the Controlled Substances Act, empower states to create their own cannabis laws, ensure federal regulation protects public health and safety, and prioritize restorative and economic justice. CAOA was first released as a discussion draft last year, alongside a request for comments from stakeholders. The National Cannabis Industry Association worked directly with Senator Schumer’s office and submitted comments to the bill. Although there was no movement, NCIA will continue to work directly with these offices to continue to improve the bill for the cannabis sector. 

The States Reform Act

Rep. Nancy Mace’s (R-SC) States Reform Act was introduced last congress by a freshman congresswoman from a state without any cannabis laws. The bill would federally decriminalize cannabis by fully deferring to state powers over prohibition and commercial regulation, regulate cannabis products like alcohol, institute a three percent federal excise tax on those products to fund law enforcement and small business programs, and protect our veterans by ensuring they will not be discriminated against in federal hiring for cannabis use or lose their healthcare, and more. Last year this bill received positive feedback from the industry and NCIA will continue to work with Rep. Mace’s office this congress. 

The Marijuana Opportunity, Reinvestment, and Expungement (MORE) Act

The MORE Act would end the criminalization of cannabis for adults by removing it from the list of controlled substances, eliminate related criminal penalties, and take several other major steps toward criminal justice reform, social justice, and economic development. Some key provisions of this bill are automatic expungements, impose a five percent tax on the retail sales of cannabis, create the Office of Cannabis Justice to oversee the social equity provisions, ensure the federal government could not discriminate against people because of cannabis use, and much more. Rep. Jerrold Nadler (D-NY), who served as chair to the House Judiciary Committee, was the sponsor of the bill last congress and was able to advance the bill through the chamber with ease. However, with Republicans winning back the majority in the House, successes like this will be more challenging. Additionally, Rep. Jim Jordan (R-OH), the new chair of the House Judiciary Committee, has not been supportive of the cannabis sector. 

The Securing and Fair Enforcement (SAFE) Banking

The SAFE Banking Act aims to protect banking institutions- as well as their insurers- that choose to offer services to legitimate cannabis-related businesses operating in accordance with their respective state laws. The bill prevents federal banking regulators from imposing penalties on depository institutions that offer services to cannabis-related businesses. SAFE Banking is a bipartisan bill that has passed the House seven times. The broad consensus was that inaction on SAFE Banking came down to Senate leadership. As bipartisan Senate discussions materialized towards the end of last Congress, Republican senators requested the Department of Justice (DOJ) to analyze the bill. The DOJ wrote, “because marijuana would remain illegal under federal law, Congress should ensure efforts to provide access to financial services for state-legal businesses does not unintentionally erect obstacles to prosecution of other illicit activity or activities involving money laundering of proceeds of other illegal drugs or sales of marijuana that do not comply with state requirements.” Despite the concerns, the DOJ stated they would be happy to work with Congress on ways to improve the bill. As the 118th Congress begins, we will continue to do what we can to get SAFE Banking to this finish line. 

The Harnessing Opportunity by Pursuing Expungement (HOPE) Act

In 2021 Rep. David Joyce (R-OH), who is a co-chair of the House Cannabis Caucus, and Rep. Alexandria Ocasio-Cortez (D-NY) introduced the HOPE Act to help states with expunging cannabis offenses by reducing the financial and administrative burden of such efforts through federal grants. Both lawmakers have advocated for cannabis reform on their respective sides of the aisle, with Rep. Joyce (R-OH) sponsoring the first Republican-led effort to decriminalize cannabis at the federal level in the House. Towards the end of last year discussions surfaced around including the HOPE Act in a SAFE Plus package. Unfortunately, with the end of the congressional session quickly coming to an end, so did the proposed package.

NCIA will continue to work with Capitol Hill offices to advance cannabis policy in the 118th Congress. With a shift in political dynamic, it’s imperative to continue to be a resource for congressional offices. Don’t miss the opportunity to attend our 11th Annual Cannabis Industry Lobby Days will be held May 16-18 in Washington, D.C.! You can register here. If you’re interested in getting more involved in our policy efforts or have questions about NCIA’s lobby days please reach out to madeline@thecannabisindustry.org. Stay tuned for more updates from the Government Relations team and check out last week’s blogs here

Video: NCIA Today – Thursday, December 15, 2022

It’s the final episode of NCIA Today for the year 2022! NCIA Director of Communications Bethany Moore checks in with what’s going on across the country with the National Cannabis Industry Association’s membership, board, allies, and staff. Join us every other Thursday on Facebook for NCIA Today Live.

 

Reform Whiplash in Washington

Photo By CannabisCamera.com

By Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations

Last week, cannabis advocates were dealt another blow with the exclusion of the SAFE Banking Act (SAFE+) in the National Defense Authorization Act (NDAA). That being said, all hope is not lost—the government runs out of funding this Friday, 12/16, and members of Congress are working hard to craft an omnibus bill that may present another opportunity for SAFE+.

Earlier this year, the House of Representatives passed their version of the NDAA — which did include the language of the SAFE Banking Act. Since then, all eyes have been on the Senate, where negotiations over the inclusion of “SAFE+” to the NDAA have been the focus. There was much discussion over what exactly the “plus” in SAFE+ would include, but there was no doubt that the HOPE Act would be a part of that, and potentially the GRAM Act. As of a few weeks ago, NCIA and other advocates were feeling cautiously optimistic about the possibility of SAFE+ being passed via the NDAA.

That was until Senate Minority Leader Mitch McConnell (R-KY) took to the Senate floor last Tuesday to specifically call out SAFE+. He said:

“House and Senate Democrats are still obstructing efforts to close out the NDAA by trying to jam in unrelated items with no relationship whatsoever to defense. We’re talking about a grab bag of miscellaneous pet priorities — making our financial system more sympathetic to illegal drugs or the phony, partisan permitting reform and name-only language that’s already failed to pass the Senate earlier this year. If Democrats wanted these controversial items so badly, they had two years to move them across the floor. Heck, they could have scheduled those matters for votes this week. But no, we’re doing more mid-level nominations, while Democrats keep threatening to take our Armed Forces hostage over those extraneous matters.

Leader McConnell even gloated about the exclusion of SAFE+ later in the week, saying, “just as Republicans insisted, just as our service members deserve, this NDAA is not getting dragged down by unrelated liberal nonsense. Good smart policies were kept in and unrelated nonsense like easier financing for illegal drugs was kept out.”

While the NDAA is slated to pass the Senate and be signed into law over the coming days, NCIA is continuing to pursue all options for passing SAFE+, including the omnibus bill that Congress is negotiating (currently) behind closed doors.

In other political news, the runoff election between Sen. Raphael Warnock (D) and Hershel Walker (R) was held in Georgia last week, with Sen. Warnock winning. This meant that Democrats held a 51-49 majority over Republicans; that is until Sen. Kyrsten Sinema decided late last week to change her party affiliation from Democrat to Independent. Like the other two Independent Senators (Angus King [ME] and Bernie Sanders [VT]), she plans to caucus with the Democrats. Regardless, the announcement came as a surprise to many.

While the clock may be running out, NCIA won’t stop advocating for SAFE+ and other cannabis issues to be passed into law.

 

 

Video: NCIA Today – Thursday, December 1, 2022

NCIA Director of Communications Bethany Moore checks in with what’s going on across the country with the National Cannabis Industry Association’s membership, board, allies, and staff. We check in on the first-ever cannabis legislation to land on the President’s desk, ask if you saw the NCIA skateboard in Las Vegas, plans for our events next year and so much more. Join us every other Thursday here on Facebook for NCIA Today Live.

Reach thousands of leading cannabis businesses while supporting NCIA’s advocacy work to protect and expand the industry by securing the right sponsorship package for your marketing needs. Contact us at Sponsorships@TheCannabisIndustry.org to learn more

Cannabis Reform – Legislative Victory and What Is To Come

by Madeline Grant, Government Relations Manager

After months of focused attention on the long-anticipated midterm elections, the U.S. Senate has finally approved the House-passed bipartisan cannabis research bill under unanimous consent. It marks the first time a standalone piece of cannabis legislation has ever been sent to the president’s desk. H.R. 8454, the Medical Marijuana and Cannabidiol Research Expansion Act, was filed in July and quickly moved through the House before being taken up by the Senate.

When signed by President Biden, H.R. 8454 will open the door for new innovative treatments derived from cannabis. Leader Schumer stated ahead of the vote, “If you’re one of the millions of Americans who deal with conditions like Parkinson’s or epilepsy or post-traumatic stress, or any number of other conditions, cannabis might hold promising new options for managing these diseases,” according to Marijuana Moment.

Under the legislation, the U.S. attorney general would be given a 60-day deadline to either approve a given application or request supplemental information from the marijuana research applicant. It would create a more efficient pathway for researchers who request larger quantities of cannabis. Additionally, the bill would encourage the Food and Drug Administration (FDA) to develop cannabis-derived medicines. To do this, the bill would allow accredited medical and osteopathic schools, practitioners, research institutions, and manufacturers with a Schedule 1 registration to cultivate their own cannabis for research purposes. Another section would require the Department of Health and Human Services (HHS) to look at the health benefits and risk of cannabis as well as policies that are inhibiting research into cannabis that’s grown in legal states and provide recommendations on overcoming those barriers. 

The point – the passage of this legislation finally sets the agencies in motion to allow the needed cannabis research we’ve been waiting for in the United States. The Senate passage of H.R. 8454 comes at the heels of when President Joe Biden issued a mass marijuana pardon and directed a review of the drug’s scheduling status. Just before the vote, Senate Majority Leader Chuck Schumer (D-NY) said on the floor that is continuing to have “productive talks” about a broader package of cannabis reforms he hopes to pass before the end of the lame-duck session. 

As the legislative days grow shorter and we near the end of the 117th Congress, the NCIA Government Relations team will continue to be a resource for congressional offices on both sides of the aisle during the lame-duck session. Bipartisan and bicameral offices have been in negotiations about the so-called SAFE Plus package for months and we will continue to monitor any action as it moves forward. 

If you are a Blooming or Evergreen NCIA member please make sure you attend our Government Relations update on December 6 at 3:30 pm EST.

We want to hear from you! A portion will be dedicated to answering your specific questions you submit through registration. This will be very interactive and a great way to get to know the Government Relations team. If you are a Blooming or Evergreen member, please go ahead and register HERE. Please be sure to submit questions so we can make sure to include time to answer all of them.

Please stay tuned for updates and more information to come. If you have any questions or want to learn more about how you can get involved with NCIA please contact madeline@thecannabisindustry.org 

Member Blog: Future Of FDIC Easing for Cannabis Banking After Biden Decriminalizes Marijuana

by Joshua Gilstrap, e2b teknologies

Over the years, the simple possession or use of cannabis has seen many lives upended by arrests and criminal convictions. Unfairly, racial disparities have determined that black and brown individuals suffer most of these convictions, arrests, and prosecutions, even though white individuals use and possess cannabis at similar rates. The resulting criminal records lead to individuals being denied fundamental rights to employment, housing, and education opportunities.

However, on October 6, 2022, President Biden made an announcement that could change the cannabis and criminal clemency conversation. The president asserted he would:

  • grant pardons to individuals with prior low-level federal cannabis possession offenses
  • change federal cannabis laws by reviewing the cannabis Schedule I rule.

The federal government’s classification of cannabis as a Schedule I substance puts it in the same category as more lethal drugs like heroin and LSD while drugs like fentanyl are not considered less severe than marijuana since it falls under Schedule II.

As more states legalize the sale and use of cannabis, the classification of Schedule I no longer makes sense. Additionally, more direct research on the proper utilization of marijuana can develop suitable restrictive and preventative measures to protect against harmful outcomes of cannabis use.

The Biden initiative is crucial because it can begin to remove the burden of employment, education, and housing limitations often experienced by individuals with simple cannabis possession convictions. Besides, if marijuana is rescheduled to Schedule II, or as many advocates champion for a complete descheduling, it could mean the end of cannabis prohibition altogether.

Widespread Support for this Initiative

Nearly 70% of Americans support the President’s pardon proclamation. Publicly, two in three Americans support Biden’s plan for cannabis reforms, and three in four support the removal of cannabis from Schedule I of the Controlled Substances Act.

Bipartisan support for this move is also high, with 74% of Independents, 84% of Democrats, and 58% of Republicans backing the proposal. At the state level, 68% of respondents support governors that want to issue pardons for people with low-level cannabis possession convictions.

Why This is Important

The expeditious review process requested by President Biden has the potential to open the cannabis industry to further changes, like the easing of banking restrictions for cannabis businesses. For instance, the call for action by governors is already inspiring many to rethink state and local relief for marijuana users. Kentucky, Colorado, and Kansas are three states already actively considering enacting the Biden pardons and drafting new reform bills for marijuana cases. 

The Colorado governor is pushing Congress to pass a bipartisan banking bill on marijuana.

“The lack of safe banking and financial services for the cannabis industry in the State of Colorado has become a dire public safety issue for highly regulated cannabis businesses operating in compliance with state law,” Gov. Jared Polis’ office wrote to House and Senate leaders.

“Further, the lack of safe banking exacerbates the uneven playing field faced by small and minority-owned cannabis businesses, despite their serving the same communities and being subject to the same increased state regulation as other cannabis businesses in the State,” the letter said.

It’s true – over the years, the cannabis industry has dealt with a lack of financial and banking services because of the strict regulations and criminalization associated with marijuana. Consequently, this has resulted in severe public safety issues, even for cannabis businesses that operate within the compliance mandates of the state law.

Additionally, operators are disadvantaged because they lack funding or banking systems that support cannabis business processes. But following Biden’s pardon, many hope that Congress’ marijuana reform will pass the Secure and Fair Enforcement (SAFE) Banking Act for the industry.

If passed, the protection against armed robbery will increase. Also, the SAFE Banking Act will support the minority, veterans, and women who own small cannabis businesses. This, in turn, is expected to improve public safety amid the growing use of cannabis and cannabis products while simultaneously creating jobs within states.

Ushering in the Era of Cannabis Banking and FDIC

Even though the SAFE Banking Act has been in the House of Congress seven times, federally insured banking services and modern digital banking solutions like electronic payment processing are still inaccessible to the cannabis industry.

The Act lags in the senate under Democratic and Republican control. However, the senate is said to be preparing to enact the reform for the SAFE Banking Act as part of the Biden marijuana proposals. And why not? There is significant support for the SAFE Banking Act.

For instance, National Association of State Treasures members have voiced their support for the SAFE Banking Act. Public policy also demands the immediate relief the ACT will provide cannabis businesses. Therefore, the expectation that leaders in the government will push for banking reforms for cannabis businesses is prevalent.

The SAFE Banking Act is an Advocate for the War on Drugs

Many believe that the baking legislation would advocate for the war on drugs because it would offer protection against the risk of robbery and violence. By denying cash-based cannabis businesses access to the traditional financial system, the state and local governments provide an invitation threat that has seen many victims working in cannabis businesses lose their lives or livelihoods.

On the other hand, the right to payment solutions, like credit cards, protects against armed robbery. Nonetheless, for the banking legislation to work, it requires the support of criminal reforms. This is where initiatives like predicant Biden’s pardon and marijuana schedule reform come in.

The SAFE Banking Act will solve the injustice associated with financial inequality, thus, providing public safety that protects customers, employees, and businesses in the cannabis industry. And with reduced invitations for armed robberies working in tandem with the use of mandated cannabis products, the war on drugs will ensue.

Cannabis Businesses Contribute Equally to the Economy

As such, it is only fair to provide them with the same rights and protections that other businesses, whether big or small, enjoy. Therefore, starting with the push to decriminalize and legalize marijuana, not just at the federal level but at the state level, is a solid place to start.

Following this pardon with an advocacy of the SAFE Banking Act will additionally provide cannabis businesses with the capability to carry out operations securely and optimally. But attention must be paid to the details pertinent to these reforms to ensure thousands of convicts get a better chance at life and cannabis businesses get opportunities to continue contributing to the economy. 

FAQs

What does President Biden’s pardon for marijuana possession entail?

President Biden’s cannabis reform initiatives are set to accomplish three things:

  1. Pardon convicts with low-level marijuana possession offenses, thus, allowing them to get housing, education, and employment without prejudice
  2. Reduce the marijuana Schedule level on the Controlled Substances Act from Schedule I to Schedule II, which lessens the seriousness of marijuana possession
  3. Inspire governors to offer the same pardons at the state and local levels where most marijuana convictions are carried out

Is there support for President Biden’s announcement?

Yes. There is ample support from the public and bipartisan control for Biden’s pardon and advocacy for the marijuana schedule change in the Controlled Substances Act.

What would the pardon mean for cannabis banking?

The de-scheduling of the marijuana Controlled Substances Act would remove the many legal hurdles and fears of the financial institutions that keep them from supporting cannabis businesses. This would reduce the discriminatory risks associated with banking or financing cannabis businesses. 


Joshua Gilstrap is the Marketing Manager for e2b teknologies, in addition to his marketing responsibilities Joshua leads business development for e2b teknologies emerging Canna Suite product line. A business graduate with a focus in marketing from Miami University in Oxford, Ohio, he joined the e2b team in the Fall of 2019. Josh brought with him a wide array of business and practical experience in planning and execution. Since coming aboard he has led multiple projects including website hosting and theme standardization company wide, marketing automation streamlining the efficiency of the customer journey, and sales automation where he is changing the conversation from promotion to education, from pitching to catching, and from push to pull in order to keep up with the shifting tides of a digital transformation.

Member Blog: Reaching The Highest Common Denominator

by Raina Jackson, Founder & CEO of PURPLE RAINA Self Care
Member of NCIA’s Diversity, Equity, & Inclusion Committee (DEIC)

This past September I had the pleasure of lobbying in D.C. for the first time as part of NCIA’s 10th Annual Lobby Days. The lobbying process was demystified for me, and I found that lobbying isn’t easy, but it isn’t that hard when you share your talking points from your heart, representing your own and others’ experiences. I learned that the NCIA delegation shares more common ground than we realized with Congressmembers, especially through their younger and more hip staffers and family members. One senator has a daughter who used to be a budtender and now podcasts about the industry, Senator Gary Peters (D-MI).

I was encouraged by how receptive legislative aides and advisors were to the factual talking points and statistics NCIA provided us to appeal to their sense of reason and fairness. They recognized the public health and economic benefits cannabis has delivered and its potential, without being distracted by useless moral arguments against it. Our team gave an overview of the cannabis landscape and advocated while offering solutions to our varied struggles as cannabis entrepreneurs.  

  • We highlighted that 47 states have adopted some form of cannabis commerce and decriminalization, representing 97.7% of the U.S. population! The majority of the American public demands safe access to cannabis. Why not ride the wave? 
  • Cannabis has been found to be a “gateway” medicine for a more safe withdrawal from opioid addiction, especially crucial to states experiencing high overdose death rates. 
  • We discussed the DEA recently approved funds for even more substantial clinical research on the myriad of proven and potential health benefits delivered by the cannabis plant in a wide range of forms. Yet existing cannabis research is often more robust and held to higher standards than over the counter aspirin. Many pharmaceutical drugs are advertised on TV as the best thing since sliced bread one day (albeit with alarming potential side effects), then next named in TV ads for class action lawsuits for their harmful effects. 

A case for an enhanced SAFE Banking Act 

The legal U.S. cannabis market is valued at $17.7 billion, with a substantial amount unbanked, causing a public safety crisis. Our discussions illuminated our common ground regarding the public safety improvements and economic benefits that the bipartisan supported SAFE Banking Act will bring to each state choosing to introduce its own customized hemp CBD/low THC, medical, or adult recreational cannabis program.

  • When compliantly banked these funds will offer financial institutions of all sizes more capital for lending to spur economic recovery and a safer industry. While no financial institution will be required to participate, the risk mitigation and sizable financial benefits can’t be ignored. 
  • SAFE will remove the risk of federal prosecution for compliant financial institutions already offering banking to cannabis businesses, while encouraging more banks and credit unions to join them. Too many existing entities providing cannabis banking services tend to mitigate risk by charging exorbitant monthly fees, financially hobbling startup cannabis businesses or excluding them altogether. 
  • SAFE would also support hemp CBD businesses like mine, still navigated the grey area regarding access to banking, loans, leases/mortgages, and payment processing.

In my follow-up email to the Congressional aides and advisors we met with, I attached a white paper authored by the Cannabis Regulators of Color Coalition (CCRC) offering best practices for increasing financial access to cannabis businesses, prioritizing groups that have been historically underserved by traditional financial institutions and disproportionately harmed by prohibition.

What’s next?

This regulated cannabis industry is so new that we must allow each other some grace as stakeholders. As cannabis advocates, we have learned that “calling people in” for discussions on the benefits of the SAFE Banking Act and comprehensive cannabis reform is more effective than “calling them out.” 

Elected officials and their staff don’t understand first-hand what we experience as cannabis entrepreneurs, and many care more than I expected. Lobbying and sending them emails on new and modified policy recommendations helps them to be well-informed enough to support us. My highlight was meeting with a CA legislative aide who is a fellow CA native and sincerely wanted to be updated on my progress and pain points. We all had a laugh about him agreeing to let me go into “the weeds” concerning the licensing process, pun intended. 

Since Lobby Days, President Biden announced the upcoming FDA and DEA review of cannabis as a Schedule 1 drug. It could potentially be de-scheduling within the next 12 to18 months! However, to date, only seven states provide licensing priority, exclusivity, or set aside a percentage of licenses for qualified social equity applicants. The same way the SAFE Banking act should be passed with amendments fostering equity, state, and future federally legalized cannabis programs must include targeted equity programs to help level the playing field. I look forward to returning to D.C. in May for 2023 NCIA Lobby Days!


Raina Jackson is a multifaceted cannabis brand strategist, product developer, and advocate, and is the founder & CEO of PURPLE RAINA Self Care, the culmination of her love for beauty wellness products, the color purple, and the musical and cultural phenomenon Prince. For the past 7 years she has worked in the San Francisco Bay Area cannabis industry in sales management, field marketing, distribution, and product development, and a verified SF Cannabis Equity applicant in Oakland and San Francisco. For the past year she has served on the NCIA Diversity, Equity, & Inclusion Committee and the Regulatory Compliance subcommittee.

Raina has over 15 years of experience in beauty/wellness care product development, sales/ marketing management, and product education at Maybelline, L’Oréal Professional, and Design Essentials Salon System and has taught cosmetology at The Aveda Institute in SoHo NYC. A San Francisco native, Raina earned a B.A. degree in cultural anthropology and linguistics from Stanford University and an MBA in marketing and management from NYU.

 

The NCIA DEI Delegation Reports Back from Lobby Days in D.C.!

by Mike Lomuto, NCIA’s DEI Manager

On September 13-14, Social Equity applicants and operators from around the country traveled to Washington D.C. as part of NCIA’s Lobby Days. Lobby Days provides the opportunity for NCIA members to speak directly with national lawmakers about the issues most important to small cannabis businesses – from SAFE banking to federal de-scheduling. This first-ever DEI delegation was supported by our members’ contributions to the Social Equity Scholarship Fund, and was the first of its kind – intentionally bringing diverse voices from our membership to Lobby Days. 

Due to the pandemic, this was our first in-person Lobby Days since the launch of our DEI Program in 2019, and the launch of our Social Equity Scholarship Program in Spring of 2020. Since then, we have been coalescing our members’ diverse voices into clear perspectives and opinions on the direction of our industry. Something that our DEI Program is very proud of is that at this year’s Lobby Days we supplied talking points with the purpose of creating a proper impact. 

Some of these talking points were sourced from the excellent white paper on SAFE Banking by the Cannabis Regulators of Color Coalition, which provides very thorough recommendations including: Requiring federal banking regulators to identify best practices to achieve racial equity in financial services; and Clarifying that cannabis criminal records are not an automatic red flag. Notably, this group which has some of its roots from NCIA’s very first Catalyst Conversation over two years ago, and its Treasurer, Rafi Crockett, now serves on NCIA’s DEI Committee. 

The Social Equity applicants and operators comprising the delegation spoke directly to lawmakers on the kind of real changes we need for DEI and social equity to become a reality in our industry, in particular regarding SAFE banking. From their experience as professionals and advocates in the industry they were able to provide much-needed insight into how legislation impacts owners, operators, budtenders, and the social equity community in particular at the ground level. These conversations proved to be the missing link for a lot of these elected officials on Capitol Hill who stated their support for making a more equitable industry and righting the wrongs of the war on drugs, but lack real-life experience on the matter. 

Here are some of the highlights from the delegation: 

“My highlight was meeting with a CA legislative aide who is a fellow CA native and sincerely wanted to be updated on my progress and pain points. We all had a laugh about him agreeing to let me go into “the weeds” concerning the licensing process, pun intended.” 

  • Raina Jackson, Founder & CEO PURPLE RAINA Self Care

NCIA Diversity, Equity, & Inclusion Committee (DEIC) 

 

“As I moved from meeting to meeting, one thing became crystal clear; there’s a knowledge gap that surrounds this plant, a gap fueled by learned behaviors, stigmas, pain, gain, and loss. This message rang clear to me from members and staff of both the senate and house…” 

  • Toni MSN, RN, CYT, Toni

NCIA Education Committee and Health Equity Working Group

 

“From my experience, I learned that people make a difference. The people who make the laws don’t know everything and us providing information and answers can and may make that difference” 

  • LaVonne Turner, Puff Couture, LLC

NCIA DEI Committee

 

“NCIA Lobby Days was an interesting peek behind the curtain of how the sausage is made in D.C. It became easier to see why some politicians seem so ill-informed about cannabis. Elected officials may themselves come from a state with draconian laws and politics about cannabis. Mix that with their staffers/advisors being recent college grads from other parts of the country with those same conditions, and you have a recipe for horrific policy. What was refreshing however was the amazing amount of knowledge that some of those staffers did possess both about cannabis policy and the plant itself. Not surprisingly they without fail worked for pro-cannabis congresspersons.” 

  • Dr. Adrian Adams, CEO Ontogen Botanicals 

NCIA DEI Committee – Subcommittee Regulation

“In each session, as I spoke about equity in underserved communities, the representative(s) appeared as it was the first time hearing the phrase Safe Equitable banking. Through their perplexed faces, I saw them registering that safe, equitable banking is needed.” – Toni

“I’ve never done something like this before sounds so cliche but it’s the best way to describe this eye-opening experience of speaking directly to Congressional staff about what it means to be a small business owner in the cannabis space.  The challenges and hurdles that we have to deal with because of 280e and cannabis being a “controlled substance” are real and huge burdens to us as small businesses and owners of color. The lack of banking and financing is exponentially more damaging and difficult to black and brown communities because of our historic lack of fair and equitable access to this vital resource.  This lobby days opportunity strengthened my resolve to be a loud voice for the Latino and black communities to ensure we have our seat at the table from this day forward!”

  • Osbert Orduña, The Cannabis Place

“Everyone we met with was compelled by the financial and public safety benefits that SAFE would offer under any form of cannabis decriminalization, from CBD with low-THC to adult consumption” – Raina Jackson

 

All in all, the consensus was that it was a valuable experience and folks would take the time to lobby again and encourage others to do the same. Lobbying in DC is one part of many strategies that have the potential to spark policy change at the federal level and without a doubt, getting a chance to speak personally to experienced industry professionals with a social equity lens was invaluable for the policymakers. 

Next year we are pledging to double or even triple our DEI delegation. If you’d like to be a part of making this happen, we are already accepting sponsorships as we plan for 2023’s event, NCIA’s 11th Annual Cannabis Industry Lobby Days on May 16-18, 2022.

If you did not get a chance to read our blog post before the delegation left for Washington, D.C. to participate in NCIA Lobby Days as part of the first-ever Lobby Days Social Equity Scholarship delegation, you can read more here

 

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