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.
Video: NCIA Today – Thursday, April 20, 2023
It’s the 4/20 Cannabis Industry Update!
Join NCIA Director of Communication Bethany Moore for an update on what’s going on with NCIA and our members.
Video: NCIA Today – Friday, March 10, 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.
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.
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.
Video: NCIA Today – Thursday, January 12, 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 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 Sponsorship@TheCannabisIndustry.org to learn more
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 theHOPE Act would be a part of that, and potentially theGRAM 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.
Cultivating Community in a City Near You: Announcing NCIA’s 2023 Event Calendar
It’s been a year of big change for NCIA. As we come to the end of 2022, we want to take a moment to send a message to our members and supporters about these changes, and most importantly, get excited for what’s next for the future of NCIA events.
The End of An Era
The events industry has faced unforeseen challenges these last couple of years, and NCIA was not isolated from these issues. Outside of needing to postpone our large tradeshows until late 2021, we also had to postpone a whole calendar of approximately 40+ events nationwide which was our primary way of connecting our community and meeting with our members face to face. Our team overcame these challenges by building our expansive digital presence and online events program to continue to provide education and exposure opportunities to our members, however this did still require a significant pivot in organizational strategy. Due to the residual hardships brought by the pandemic, we learned earlier this year that the Cannabis Business Summit & Expo was not going to be able to be produced on the scale or quality that we or our members had come to expect throughout the years. So, in tandem with our previous tradeshow co-producers, we made the difficult decision to dissolve our existing partnership and accepted an offer from them to acquire our tradeshow portfolio. For those who have been attending our tradeshows since 2014, we can’t thank you enough for your participation in those events and making them so impactful for the industry. There are too many good memories to revisit, and hope you take a moment to remember some of your personal highlights throughout the years as we look forward to coming together for new events in 2023.
Looking Ahead to 2023
For now, we will be taking a hiatus from the tradeshow space. This will allow our team to refocus our efforts into other impactful networking and educational opportunities. We’re excited to get back to our roots and focus our efforts on intentional and innovative gatherings that connect Main Street cannabis businesses with each other and with NCIA’s advocacy efforts.
We’ve listened to the feedback from our members, and know that in-person networking remains essential to building your business and growing your network. In these uncertain economic times, every dollar spent and any time away from your business impacts your bottom line. As the leading cannabis trade association representing small-business owners, we’re committed to making the investment to meet our members where they are, and to continue facilitating experiences where our members can make key connections with fellow business owners. Moving into 2023, we’re reinvigorating our events program starting with our regional Industry Social and Cannabis Caucus event series, leading into the cannabis industry’s biggest policy and advocacy event of the year: NCIA’s 11th Annual Cannabis Industry Lobby Days.
We invite you to move forward with us as we enter a new chapter in our history. Without further ado, we are excited to announce the lineup of events for the first half of 2023!
Join NCIA to Take Advantage of Complimentary Tickets
As always, NCIA members receive complimentary access to all of these events based on membership level. Looking to have an expanded presence at each event? Consider upgrading your membership today in order to include your entire team or prospective clients.
Huge thanks to the initial sponsors of these events which have made a significant investment in NCIA’s community building efforts moving into 2023! Learn more about each of these pioneering businesses helping drive our mission forward and reach out to schedule a meeting with their team surrounding the upcoming events.
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Support These Events Through Sponsorship
Has your company had trouble breaking through the noise on a crowded expo floor this past year? Is your brand looking for quality B2B connections with market leaders? Want to play a larger role and align your business with NCIA’s community building and educational efforts?
Consider one of our affordable sponsorship packages, starting for as low as $500, which will allow you to reach thousands of leading cannabis businesses while supporting NCIA’s advocacy work on behalf of small cannabis businesses. Contact our team at sponsorship@thecannabisindustry.org to learn more.
We can’t thank our community enough for the continued support of NCIA and our events. We look forward to seeing you, in person, next year!
Video: NCIA Today – Thursday, July 28, 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. This week Bethany is joined by NCIA CEO Aaron Smith and Deputy Director of Government Relations Michelle Rutter Friberg. Join us every other Thursday on Facebook for NCIA Today Live.
Making History In Congress, Thanks To NCIA Members!
by Aaron Smith, NCIA’s CEO and Co-founder
History was made today as Senate Majority Leader Chuck Schumer (D-NY) along with Senators Ron Wyden (D-OR) and Cory Booker (D-NJ) introduced the Cannabis Administration and Opportunity Act which would finally remove cannabis from the federal Controlled Substances Act and begin the process of federal regulation.
For the last year, NCIA has been working behind the scenes to ensure this landmark legislation not only ends prohibition but also creates an environment where small and medium-sized businesses can thrive under national legalization. These businesses – who we now call “Main Street Cannabis” – are the heart of our industry and we’re proud to have been giving them a seat at the table in our nation’s halls of power for over 12 years.
We will continue working with our allies in the Senate to advance this bill and advocate for some necessary amendments to better ensure that small, equity, and women-owned businesses (in particular) are well-positioned to thrive after the end of federal prohibition.
We would not be where we are today if not for your support which has allowed us to effectively represent the interests of small businesses like yours in the halls of Congress and in the court of national public opinion.
I hope you’ll join us in making national legalization a reality by making your voice heard at our upcoming 10th Annual Cannabis Industry Lobby Days in Washington, D.C. September 13 & 14!
Thanks to your membership, NCIA’s government relations staff represents Main Street Cannabis in D.C. every day but Lobby Days is your chance to show up and tell your unique story to our nation’s lawmakers, firsthand.
Lobby Days is also the best opportunity to connect with your fellow industry leaders who are truly invested in the future of cannabis and sensible national policy. Please register today so you don’t miss out on making history with us! Reach out to my colleague Madeline Grant to learn more about how you can be as impactful as possible at this year’s Lobby Days.
Thanks, as always, to all NCIA members for their support of the cannabis industry. If your company is not yet a member of NCIA, now’s the time to join and have your voice heard in the halls of Congress.
Watch this video update with Aaron Smith and Michelle Rutter Friberg:
Video: NCIA Today – Thursday, July 14, 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.
Midterm Election Voters Will Likely Determine Cannabis Legalization Amid Several States
By Sadaf Naushad, NCIA Intern
With midterm elections just four months away, cannabis activists are paving the path for major reformations to take place nationwide.
In order for voters to see cannabis legalization on their state’s midterm ballot, cannabis advocates are scrambling to collect the number of signatures necessary. Fortunately, residents within various states are in support of cannabis legalization, as demonstrated through the high volumes of submitted signatures.
The rapidly emerging cannabis industry has led to spiked encouragement of cannabis legalization across the U.S., emphasizing the demand for lawmakers to implement safe and secure cannabis policies.
Let’s take a closer look at some of the state-level progress:
Arkansas
Cannabis activists are highly optimistic after their recent efforts to push for legalization on Arkansas’ midterm ballot. Last week, advocates turned in more than twice as many signatures to the Secretary of State’s office as required to appear on the ballot. According to Responsible Growth Arkansas, 89,151 signatures are needed to qualify for the measure. Advocates stunned the Secretary of State when they delivered just over 190,000 signatures.
Provisions on the measure would permit anyone at least 21 years of age to possess up to one ounce of cannabis. Additionally, Arkansas would grant its current medical shops permission to add adult-use sales on March 8, 2023. A lottery would also distribute 40 additional licenses for adult-use dispensaries, and municipalities would need to hold a referendum if they prefer to prohibit adult-use businesses. On the other hand, the measure does not include expungements of prior marijuana convictions.
While many view the signatures as enhanced legalization support, Arkansas True Grass and Arkansans for Marijuana Reform have raised concerns about the potential provisions. Both organizations state that the measure would favor large businesses in the present medical cannabis industry. But Steve Lancaster, Responsible Growth Arkansas’ spokesperson, believes that the “constitutional amendment provides a sound infrastructure for reform that prioritizes regulations.” If voters approve legalization, Lancaster intends to advance further reforms in the legislature.
At the moment, however, two weeks remain for Arkansas to verify the submitted signatures.
North Dakota
Cannabis consumers find themselves one step closer to legalization in North Dakota. Just three months ago, lawmakers approved the cannabis legalization ballot language, clearing the procedural obstacle to begin gathering signatures.
On Friday, cannabis activists collected numerous signatures, exceeding North Dakota’s 15,582 minimum requirement. The New Approach North Dakota campaign claimed they obtained 21,400 valid signatures and anticipate that number to increase before today’s deadline.
The measure’s initiative would allow those 21 years of age and older to purchase and possess a maximum of one ounce of cannabis, along with permitting adults to cultivate a maximum of three plants for personal use. Furthermore, the Department of Health and Human Services would be responsible for conducting regulations and overseeing licensing for cannabis businesses. The department’s regulators would have until October 1, 2023 to incorporate rules regarding security, advertising, labeling, packaging and testing standards. To mitigate the possibility of a monopolized market, North Dakota’s initiative specifies that any individual or organization can only own up to four retail locations or one cultivation facility.
Nebraska
Tremendous momentum builds across Nebraska, as activists exceed the amount of signatures to qualify medical cannabis legalization initiatives for the midterm ballot.
Nebraska requires each proposal to have 87,000 valid signatures from registered voters to qualify for November’s ballot. On Wednesday, however, advocates encountered a legal hurdle when a federal court overturned a lower federal court’s ruling that had momentarily eased ballot prerequisites. The ruling states that signatures “must come from a minimum of five percent of voters in at least 38 counties across the state.” The Nebraskans for Medical Marijuana Campaign, in addition to many activists, deem this ruling as unconstitutional, stating that it generates a detrimental burden that gives oversized influence to small, rural communities that are more challenging to reach.
Nevertheless, these barriers have not fazed activists assembling cannabis legalization support. In May, the campaign collected 20,000 signatures on each petition, and now that number has increased to over 90,000. To guarantee sufficient valid signatures, the Nebraskans for Medical Marijuana campaign aim to gather several thousand more signatures before Thursday’s turn-in deadline.
Minnesota
With Minnesota’s recent legalization of edibles and drinks infused with low amounts of THC, consumers remain excited for what’s to come.
But for lawmakers, this means acknowledging Minnesota’s current absence of statewide cannabis regulations. For now, local governments are responsible for enacting market rules within their jurisdictions. According to U.S. Representative Heather Edelson (DFL), “the ability for municipalities to offer important guidance and clarity on day-to-day operations and compliance within a city is vital.”
That being said, Representative Edelson has conducted meetings with mayors, city council members, city managers and the League of Minnesota Cities to inform them about how the new law could shape their areas and how they can execute parameters within local markets.
Oklahoma
Oklahoma is yet another state pushing for cannabis legalization to surface on the November ballot. Last Tuesday, The Oklahomans for Sensible Marijuana Laws campaign submitted over 164,000 signatures to the Secretary of State’s office, surpassing the minimum number of 94,911 signatures necessary to qualify for the ballot.
If passed, the measure would permit adults 21 and older to possess and purchase up to one ounce of cannabis. Adults would also be able to grow a maximum of six mature plants and six seedings for personal use. The Oklahoma Medical Marijuana Authority Department is in charge of regulating the market, as well as issuing cannabis business licenses. The department would impose a 15% tax on adult-use cannabis products, in which its revenue would go towards the “Oklahoma Marijuana Revenue Trust Fund.” These funds would initially cover the costs of managing the program, while the rest of the funds would be allocated between municipalities where the sales followed, the State Judicial Revolving Fund, the general fund, public education grants and grants for organizations involved in substance abuse treatment and prevention.
Finally, for those serving time due to prior cannabis convictions, the measure allows inmates to “file a petition for resentencing, reversal of conviction and dismissal of case, or modification of judgment and sentence.” Those who previously served a sentence for past cannabis convictions can petition for expungement.
Altogether, the cannabis industry is witnessing a growing number of legalization support nationwide. From Minnesota to Oklahoma, cannabis consumers are eager to have their voices heard and addressed on November’s midterm ballot. The recent legalization efforts across states shine a light on the mounting acceptance of the industry’s movement, setting the stage for crucial cannabis reformations to follow.
Stay tuned for more updates on cannabis policy reforms. If you are interested in learning more about NCIA’s government relations work and how to get involved, please reach out to Madeline@thecannabisindustry.org.
An Optimistic Congress Aims to Legislate a Bipartisan Cannabis Omnibus Package
By Sadaf Naushad, NCIA Intern
As the cannabis industry progresses nationwide, the public demands Congress to pass major cannabis reforms. After months of opposition met among Congress members, a breath of fresh air awaits cannabis advocates, lobbyists, and consumers.
Last Thursday, two crucial congressmen revealed objectives to establish an extensive package of incremental cannabis proposals.
While Senate Majority Leader Chuck Schumer (D-NY) expects to file the final version of the Cannabis Administration and Opportunity Act (CAOA) sometime this summer, lawmakers are using the draft language as a guide to propose an alternative backup bill in creating a cannabis “omnibus” package.
With the wide-ranging package garnering support across Democratic and Republican lawmakers, industry insiders have high hopes that both chambers could come together to endorse an effective, bipartisan bill by the end of this year.
Let’s discuss the potential inclusions within the bipartisan cannabis package.
Recently, a number of Congress members have discussed the possibility of creating a new cannabis bill that would comprise several incremental measures, including provisions focusing on banking, access to medical cannabis for veterans, research expansion, access to SBA programs, drug sentencing reformations, and more.
Lead sponsor of the Secure and Fair Enforcement (SAFE) Banking Act, Rep. Ed Perlmutter (D-CO) is hoping to incorporate protection for financial institutions operating with state-legal cannabis businesses in a potential package. According to Rep. Perlmutter, members also have interest in including Rep. Dave Joyce’s (R-OH) Harnessing Opportunities by Pursuing Expungement (HOPE) Act, a bill designed to expunge prior marijuana convictions. Additionally, lawmakers are deliberating over granting cannabis businesses access to SBA loans and services that are obtainable to every other industry, a reform initially advocated by Sen. Jacky Rosen (D-NV).
These four concerns –- veterans, research, expungements, and banking – constitute a small portion of the package’s considerations.
Congress will also potentially consider including a non-cannabis item as part of the wider deal, known as the EQUAL Act, which looks to alleviate racial disparities within the criminal justice system by eliminating the federal sentencing disparity between crack and powder cocaine.
Leader Schumer, however, faces the requirement of having a 60-vote threshold to pass legislation. Although the chamber comprises a slim majority of Democrats with the vast majority of GOP members opposing numerous past bills, the 60-vote requirement may be attainable. In contrast to Schumer’s CAOA, indications are that the incremental package has more broad bipartisan support.
Though members have not reached an official deal as these major reforms remain under deliberation, Congress members are not abandoning their efforts to push for a broader-based CAOA bill.
Currently in the bicameral conference committee remains the large-scale manufacturing bill, known as the America COMPETES Act. Leader Schumer has rejected attempts to integrate the SAFE Banking Act as currently written into the COMPETES Act, alleging that it may weaken the ability to approve a slightly larger cannabis reform package. Having passed the House six times, industry insiders feel certain that the Senate will authorize the SAFE Banking Act later this year.
Altogether, the above-mentioned legislation would come up short in federally descheduling cannabis; however, these provisions may acquire the support necessary to reach U.S. President Biden’s desk.
U.S. Federal Appeals Court Legalizes Delta-8 THC, Setting Precedent for the Cannabis Industry
By Sadaf Naushad, NCIA Intern
Thanks to the Agricultural Improvement Act of 2018 (2018 Farm Bill), hemp is now federally legal, permitting U.S. farmers to cultivate, process, and sell hemp. Since its passing, however, businesses in the hemp industry have found themselves in a legal gray area.
With the 2018 Farm Bill eliminating restrictions on the psychoactive cannabinoid delta-8 THC, the companies deemed their delta-8 THC products within legal guidelines. Several jurisdictions disagreed, calling for clarification on the status of delta-8 THC.
Last week, the U.S. Court of Appeals for the Ninth Circuit addressed the dilemma, claiming delta-8 THC products as federally legal.
Let’s consider what delta-8 THC legalization means for the future of the cannabis industry.
Because recreational cannabis use remains federally illegal, delta-8 THC products continue to gain popularity nationwide. Manufacturing developments have led to enhanced consumer products, in which cultivators safely extract delta-8 THC cannabinoids from hemp plants.
While delta-9 THC constitutes a major psychoactive cannabinoid in the marijuana plant, delta-8 THC appears in trace amounts of the plant. Its psychoactive properties grant consumers gentler side effects compared to delta-9 THC.
On Thursday, a three-panel judge of the U.S. Court of Appeals published their opinion regarding delta-8 THC, ruling products containing the psychoactive ingredient as federally legal. According to the panel, delta-8 THC qualifies as a legal substance under the present federal definition of hemp. Federal law outlines hemp as “any part of” the cannabis plant, in which “all derivatives, extracts and cannabinoids” with less than 0.3% delta-9 THC by weight are allowed.
Had U.S. Congress unintentionally created a loophole leading to the legalization of delta-8 THC, the U.S. Federal Appeals Court stated that Congress should be responsible for resolving the issue. The panel specified that they would not replace its own judgment with Congress’ policy rulings. In the meantime, the Court defines the federal hemp law as “silent with regard to delta-8 THC.”
According to a Politico article, “Members of Congress have proposed fixes to federal hemp laws that would close this loophole. Rep. Chellie Pingree (D-Maine) introduced a bill in February to limit hemp and hemp products by calculating the total THC rather than focusing on Delta-9 THC. At the same time, state hemp regulators are voicing for a similar change advocating for the 1 percent total THC definition of hemp. Meanwhile, some states have moved to ban the sale of Delta-8 THC products or to regulate them similar to recreational marijuana.”
NCIA takes a strong position that Delta-8 products and any other psychoactive cannabinoids must be restricted to adults over 21 and regulated by the states so that these products are subject to the same testing requirements, track-and-trace rules, and excise taxes as other adult-use cannabis products.
Furthermore, if you are interested in learning more or getting involved with NCIA’s Government Relations work please contact Madeline Grant at madeline@thecannabisindustry.org to schedule a call. As the oldest and largest trade association, our Government Relations team has been hard at work for over a decade educating and working with congressional offices. NCIA held its Virtual VIP Lobby Days last week, May 16-19 on Capitol Hill. NCIA’s Evergreen members participated in congressional meetings all week long to advocate and educate members of Congress(s) and staff on the importance of cannabis policy reform. We discussed the importance of keeping the Secure and Fair Enforcement (SAFE) Banking in the America COMPETES Act and descheduling cannabis at the federal level. You can read more about cannabis and banking from last week’s blog HERE.
NCIA members were able to share their personal stories about being in the cannabis space and relay their expertise to further understanding of the struggles and hurdles cannabis businesses face every day. There is never a time more important than now to support NCIA’s efforts for cannabis policy reform.
CAOA Delays, House Negotiations, and a Cannabis Festival
Photo By CannabisCamera.com
By Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations
Hopefully you’ve had a chance to recover after 4/20, but here in Washington, D.C. the work never ends!
Over the last few weeks, there have been developments on the timeline for the Cannabis Administration and Opportunity Act (CAOA), updates on the path forward for SAFE Banking, and a slew of pro-legalization events took place in the D.C. Keep reading for the latest:
More Delays for the Cannabis Administration and Opportunity Act (CAOA)
In February 2021, Senate Majority Leader Chuck Schumer (D-NY) along with Sen. Finance Committee Chairman Ron Wyden (D-OR) and Sen. Cory Booker (D-NJ) announced that they would be introducing a comprehensive cannabis bill to deschedule cannabis, enact a regulatory framework for this new industry, and seek to repair some of the harms that the war on drugs has created. In July of that year, the trio released the long-awaited, detailed discussion draft of the Cannabis Administration and Opportunity Act (CAOA) and asked for comments and feedback from stakeholders (you can read NCIA’s here) to be submitted by September 1, 2021. Since then, the Senators have been diligently reviewing and working on the legislation.
The sponsoring offices had hoped to introduce the CAOA in the beginning part of the year, and more specifically April 2022, however, they recently announced that they are continuing their diligent work and will introduce the bill before August recess.
While this announcement can be frustrating at face value, I’m happy that the Senators are being thoughtful, careful, and considerate about crafting this legislation. Precedent matters a lot on Capitol Hill, so getting it right on the first try (or attempting to!) matters.
SAFE Banking & the America COMPETES Act
The House of Representatives has passed the SAFE Banking Act three times this Congress; first in April 2021 as a standalone bill by vote of 321-101 and most recently as an amendment to the House’s version of the America COMPETES Act, which is now being negotiated by a bicameral, bipartisan conference committee.
While many in D.C. had hoped that negotiations would conclude by Memorial Day, lead sponsor Sen. Todd Young (R-IN) recently said that a more realistic timeline for the bill would be the end of summer. This week, the Senate will vote on 28 motions to instruct- these are procedural, non-binding resolutions that guide the conference committee through the negotiation process. After that, the conference committee can begin meeting
National Cannabis Festival and more!
Founded in 2016, the National Cannabis Festival is an annual event held in Washington, D.C. with a focus on cannabis and music, advocacy, education, and activism. Now boasting well over 20,000 attendees, NCIA is proud to have been involved with the event since its inaugural year, and I even sit as an advocacy committee chair!
This year, the festival was back and better than ever with an entire week of events celebrating cannabis advocacy in the nation’s capital, including an incredible Policy Summit featuring members of Congress, advocates, journalists, and more.
Like I said – the work never ends in D.C., and the NCIA team is gearing up for another busy month filled with Evergreen virtual lobby days, Hill meetings, coalition building, and more! Want to get involved? Consider becoming a member today!
Video: NCIA Today – Thursday, April 7, 2022
NCIA Deputy 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.
This episode of NCIA Today is brought to you by Senseon Secure Access, offering concealed protection, monitoring, and workflow management for dispensaries. Senseon is ready to provide you with an exceptional customer experience, plus improved efficiency and compliance, not to mention slim and modular aesthetics. Learn more about their security solutions and cost benefits at Senseon.com.
(Another) Historic Week In Congress for Cannabis Reform
Photo By CannabisCamera.com
By Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations
Usually, progress is slow in Washington, D.C. However, that has not been the case lately! Within the last week, the U.S. House of Representatives has passed both the Marijuana Opportunity, Reinvestment and Expungement (MORE) Act and the Marijuana Research Act! They passed by a vote of 220-204 and 343-75, respectively. Let’s take a look at the bills and what’s next for them:
The MORE Act
Last week, the MORE Act came to the House floor for the second time in history. It was first voted on in December 2020, when it passed by a margin of 228-164.
Revisions from the last session include the removal of a provision that would have allowed federal regulators to deny cannabis business licenses to applicants who have prior felony convictions. Other changes from the introduced text this session include revisions to property requirements, allowing operators to secure those locations after receiving a federal license.
A number of amendments were offered at a Rules Committee hearing to advance the bill, however, only three were ruled in order. The first passed on a roll call vote and was introduced by Rep. Josh Gottheimer (D-NJ), authorizing $10M for the National Highway Traffic Safety Administration to conduct a study on technologies and methods that law enforcement may use to determine whether a driver is impaired by marijuana.
Another amendment, introduced by Rep. Conor Lamb (D-PA) directs the National Institute for Occupational Safety and Health (NIOSH) to conduct a study on the impact of legalization to the workplace, using states that have legalized recreational use of cannabis as a guide, and requires NIOSH to develop best practices for employers as companies transition their policies related to cannabis, prioritizing employers engaged in federal infrastructure projects, transportation, public safety, and national security. Additionally, it directs the Department of Education to conduct a study on the impact of legalization on schools and school-aged children, using states that have legalized recreational use of cannabis as a guide, and requires the Department of Education to develop best practices for educators and administrators to protect children from any negative impacts.” It passed on a roll call vote.
Another amendment, which failed on a roll call vote was offered by Rep. Jamie Raskin (D-MD) would have required federal agencies to review security clearance denials going back to 1971 and retroactively make it so cannabis could not be used “as a reason to deny or rescind a security clearance.”
While there is currently no companion bill in the Senate, Majority Leader Schumer (D-NY) along with Senators Booker (D-NJ) and Wyden (D-OR) is expected to introduce a comprehensive cannabis reform bill over the next month.
Marijuana Research Act
More recently, the House also passed the Marijuana Research Act sponsored by Reps. Earl Blumenauer (D-OR) and Andy Harris (R-MD). This bill would remove barriers for researchers seeking to apply and get approved to study cannabis, set clear deadlines for federal agencies to act on their applications, and also make it easier for scientists to modify their research protocols without having to seek federal approval.
Last month, the Senate also unanimously passed a research bill: the Cannabidiol Marihuana Research Expansion Act, sponsored by Sens. Feinstein (D-CA), Grassley (R-IA), and Schatz (D-HI). It remains to be seen whether the two chambers will be able to negotiate a deal on these research provisions to send to President Joe Biden.
Whether it’s cannabis research or descheduling, the NCIA D.C. team continues to increase momentum for reform. Interested in learning more about our efforts in D.C.? Consider becoming an Evergreen member today!
Video: NCIA Today – Thursday, March 24, 2022
NCIA Deputy 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.
Omnibus Leaves Industry Hanging
by Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations
Photo By CannabisCamera.com
Since 2014, federal funding bills, or appropriations bills, have included provisions restricting the Department of Justice from using tax dollars to prosecute or penalize state-legal medical cannabis businesses and patients. Since then, NCIA and others have worked diligently to expand those protections and enact cannabis reform through the budget, with some efforts being more successful than others. Another issue making matters more complicated: the federal appropriations process requires this provision to be approved by congressional process annually, so introducing, lobbying on, and enacting these provisions has to reoccur every year.
Last week, Congress passed the most recent omnibus appropriations bill, which is increasingly used to group together the budgets of all departments in one year. Keep reading to find out what provisions related to cannabis were included (or weren’t!) and why it matters:
PROTECTIONS
If you’ve been in cannabis for a while, you might remember when medical cannabis protections were first enacted in 2014. Back then, the provision was known as the “Rohrabacher-Farr Amendment,” named for then-Reps. Dana Rohrabacher (R-CA) and Sam Farr (D-CA). This amendment forbids the Department of Justice (DOJ) from spending money to prevent the implementation of state-level medical cannabis programs, in addition to removing funding for federal medical cannabis raids, arrests, and prosecutions in states where medical cannabis is legal. To put it simply: the DoJ can’t use any of its money against state-legal, compliant medical cannabis businesses.
So, the omnibus had some good news and some bad news regarding protections for cannabis businesses from the Department of Justice. Good news? Those protections for medical cannabis businesses, patients, and programs remain in place. Bad news? Congressional leaders declined to expand those protections to include all cannabis businesses, despite the fact that the House has voted twice in the past to do so.
WASHINGTON, D.C.
For decades, Congress has used its power and jurisdiction over Washington, D.C. as a bargaining chip and test subject for various policies, and cannabis is no exception.
Washington, D.C. voted to legalize adult-use cannabis via Initiative 71 in 2014. However, because the Constitution gives Congress jurisdiction over the District of Columbia, Washingtonians have been, and continue to be, unable to implement the taxed and regulated sales of cannabis for adults. (That hasn’t stopped a flourishing gray market, but that’s a topic for another blog!)
One Congressman, in particular, has obstructed D.C’s cannabis market: Andy Harris, the lone Republican in the House from the state of Maryland. The “Harris Amendment,” which prevents legal sales from occurring in D.C., has been included in every appropriations bill since – again, despite the fact that House Democrats have voted to strip the language multiple times.
The inclusion and maintenance of this provision – especially while Democrats control both chambers of Congress – is simply unacceptable and inexcusable. To that end, NCIA recently signed on to a letter urging leadership to remove the language. It’s also critical to point out that Washington, D.C. is one of the places where disparate cannabis arrests occur at an alarming rate, making the need for reform even more dire.
EXPUNGEMENTS
A new appropriations amendment that NCIA supported was also included in the most recent omnibus. The language, championed by Cannabis Caucus Co-Chair Dave Joyce (R-OH), would allow JAG funding to be used for the cost of state and local cannabis expungements and record clearing. This is a small but incredible reform that we hope will be the first step in providing justice to individuals impacted by the War on Drugs.
VAPING
The omnibus also included report language related to cannabis. Report language is non-binding and essentially encourages an agency to do something. In this case, Congress is urging NIDA (the National Institute on Drug Abuse) to conduct interdisciplinary research on the relationship between the vaping of tobacco and marijuana, with an emphasis on risk perceptions, decision-making, and neuroscience.
Interestingly, the appropriations process for FY2023 is beginning to get underway already. NCIA will be working with appropriators and other allies in Washington, D.C. to maintain provisions that protect cannabis businesses and consumers while stripping those that deny opportunity and justice to others. Interested in learning more about appropriations, or working with our team on an amendment? Learn more about our Evergreen Roundtable and committees by visiting our website!
Video: NCIA TODAY – Thursday, March 10, 2022
NCIA Deputy 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.
Member Blog: Hemp Cultivators and Processors Get a Head Start in New York Adult-Use Cannabis Industry
While the Garden State and Land of Steady Habits are convincingly in the lead of the tri-state dash towards adult-use cannabis sales, new legislation passed last week at least gives the Empire State a burst of energy.
There has been much anticipation since the Marijuana Regulation and Taxation Act legalized cannabis in New York for adults last year. But only medical patients in the state can legally purchase products right now. New York’s slow start to recreational sales has reportedly led to even more unregulated products flooding the marketplace, including delta-8 THC — which is banned under NY state law though widely being sold throughout the state.
By Governor Hochul signing Senate Bill8084A into law on February 22, 2022, the legal cultivation, processing, and distribution of cannabis in New York should be accelerated. Specifically, the new legislation permits hemp cultivators and processors to apply for growing and processing adult-use cannabis, and aims to promote certain equity goals in the process. It creates two new temporary license categories: (1) conditional adult-use cultivator licenses; and (2) conditional adult-use processor licenses. These licenses must be issued by December 31, 2022, and will be valid through June 30, 2024.
Among other requirements, applicants seeking conditional cultivator licenses must be prepared to demonstrate they are authorized hemp growers in good standing. Although they must only show good standing since December 31, 2021, applicants must also show proof of growth for two of the last four years.
Cultivators must also comply with geographic restrictions for growing and are limited to outdoor or greenhouse settings. Outdoor facilities may have a maximum of 43,560 square feet of flowering canopy. Greenhouse canopy may not exceed 25,000 square feet, and can use up to 20 artificial lights. As expected, licensees must also comply with any environmental standards and requirements mandated by the Office of Cannabis Management.
For those seeking conditional processor licenses, licensees must hold an active cannabinoid hemp processor license. This license must have been granted before January 1, 2022. And, as a condition of licensing, transfer of ownership will be restricted through the end of the conditional period. The processor license will allow the acquisition, possession, processing, and sale of cannabis, along with enabling the licensees to engage in blending, extracting, infusing, packaging, labeling, branding, and preparing cannabis products.
In addition, all conditional licensees must enter into a labor peace agreement, participate in an environmental sustainability program and social equity mentorship program. Licensees must also, among other things, become operational within six months from the day they receive the conditional license.
Hemp farmers and processors are no doubt getting a big nugget from the Big Apple. While more regulations on adult-use licensing are anticipated soon, a trail is now blazed for certain New Yorkers in the hemp industry and social equity participants.
Charles J. Messina is a Partner at Genova Burns LLC and specializes in Franchise & Distribution, Agriculture and Cannabis Law. He teaches one of the region’s first cannabis law school courses and devotes much of his practice to advising canna-businesses as well as litigating various types of matters including complex contract and commercial disputes, insurance and employment defense matters, trademark and franchise issues and professional liability, TCPA and shareholder derivative actions.
Jennifer Roselle is a Partner at Genova Burns LLC and specializes in Cannabis Law. She has unique experience with labor compliance planning and labor peace agreements in the cannabis marketplace. In addition to her work in the cannabis industry, Jennifer devotes much of her practice to traditional labor matters, human resources compliance and employer counseling.
For over 30 years, Genova Burns has partnered with companies, businesses, trade associations, and government entities, from around the globe, on matters in New Jersey and the greater northeast corridor between New York City and Washington, D.C. We distinguish ourselves with unparalleled responsiveness and provide an array of exceptional legal services across multiple practice areas with the quality expected of big law, but absent the big law economics by embracing technology and offering out of the box problem-solving advice and pragmatic solutions.
Our firm is proud of its proven track record of assisting multiple clients with being awarded medical licensure in New Jersey, and continuing to counsel clients on the dynamic federal and state regulatory landscape, as well as with corporate transactional, labor/employment, real estate, land-use and other issues.
Given Genova Burns’ significant experience representing clients in the cannabis, hemp and CBD industries from the earliest stages of development in the region, the firm is uniquely qualified to advise investors, cultivators, processors, distributors, retailers and ancillary businesses.
SAFE Banking, Hemp, and SCOTUS Update
Photo By CannabisCamera.com
by Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations
Since I last provided an update from Washington, D.C., not much has changed in terms of cannabis reform. That being said, there are still a few short developments that we’ve been keeping an eye on that we want to bring to your attention! Keep reading to learn the latest:
SAFE Banking
SAFE Banking passed the House for the sixth time in February as part of the America COMPETES Act. More recently, a stakeholder meeting was held with lead champion Congressman Perlmutter that NCIA was proud to have participated in.
During this stakeholder meeting, Rep. Perlmutter reviewed where the bill is at, the hurdles it must clear in order to pass, and reiterated his commitment to passing the bill before this session is over. Congressman Perlmutter also talked extensively about a recent hearing that the House Financial Services Subcommittee on Consumer Protection and Financial Institutions held titled “Small Businesses, Big Impact: Ensuring Small and Minority-Owned Businesses Share in the Economic Recovery.” Chaired by Rep. Perlmutter himself, the subcommittee heard testimony from the Minority Cannabis Business Association’s (MCBA) Executive Director, Amber Litteljohn, on the economic barriers federal policy has created within the burgeoning cannabis market.
Hemp
A few weeks ago, the United States Department of Agriculture’s (USDA) National Agricultural Statistics Service (NASS) released the results of the 2021 Hemp Acreage and Production Survey in its National Hemp Report. This is a massive, first-ever survey of its kind to be done at the national level, and is set to provide a “benchmark” analysis of the economic impact of the burgeoning newly legal market.
The survey collected data for hemp grown in the open and hemp under protection. Planted area for industrial hemp grown in the open for all utilizations in the United States totaled 54,152 acres. Area harvested for all utilizations totaled 33,480 acres. The value of U.S. hemp production in the open totaled $712 million. The value of production for hemp that was grown under protection in the United States totaled $112 million. Area under protection totaled 15.6 million square feet.
SCOTUS
The Supreme Court has officially asked the highest lawyer in the land, the solicitor general, to weigh in on cannabis.
Justices were asked whether or not employees seeking workers’ compensation for medical cannabis after being hurt on the job should receive the assistance, but before they do, they want the broader government to comment. They have requested that the solicitor general submit a brief on the topic. For more details, check out this great piece our friends at Marijuana Moment published.
While this week’s update was another “hodge-podge”, NCIA’s government relations team continues to work hard at passing reform this Congress. We continue to meet with offices to elevate the need for SAFE Banking – primarily for small and minority-owned businesses, discuss the decimation that 280E is wreaking, and highlight opportunities for restorative justice. Interested in becoming more involved with lobbying and our government relations efforts? Contact Stefan at stefan@thecannabisindustry.org to talk about becoming an Evergreen Member today!
Video: NCIA Today – Thursday, February 10, 2022
NCIA Deputy 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.
NDAA Blues, But HOPE On The Horizon
by Morgan Fox, NCIA’s Director of Media Relations
The last week or so has been an interesting one in Congress when it comes to cannabis policy reform, and carried with it the usual mix of positive and unfortunate developments.
First, in yet another installment in the long and ongoing saga that is the SAFE Banking Act’s path toward becoming law, a minor setback. Champion and lead sponsor Rep. Ed Permutter had been working for weeks to get SAFE Banking language included in the NDAA, or National Defense Authorization Act. This spending package is typically focused on security and military matters, and is considered “must-pass” legislation by both chambers. Now, you may be asking what allowing banks to more easily work with legal cannabis businesses has to do with national security, and the answer – oddly enough – is a lot. Beyond the obvious public safety benefits of no longer forcing most cannabis businesses to operate entirely in cash and making them targets for crime, allowing access to banking would dramatically increase financial transparency in the industry. This would give law enforcement additional tools to help prevent the admittedly rare occurrences of criminals extorting legal businesses or using them to launder money, which is certainly a security concern. Perhaps even more relevant, being able to use the financial services that are available to other legal industries would help remove significant barriers to entry into the legal market and allow small cannabis businesses to be more competitive with unregulated operators, some of whom have ties to international drug trafficking organizations that present an ongoing threat to global security.
Unfortunately, Rep. Perlmutter decided not to add the banking language to the NDAA at the urging of Speaker Pelosi in order to ensure the spending package would pass without issue. Despite this compromise, however, Rep. Perlmutter has vowed to attempt to add it to every available legislative vehicle going forward. Given the fact that the Senate is currently stalling on the SAFE Banking Act as a standalone bill, this may be the most viable strategy of getting cannabis banking reform through both chambers before the end of the current Congress.
Speaking of other vehicles for reform, the ongoing appropriations process continues to hold hope for passing a number of cannabis-related items in the near future. Lawmakers recently approved a continuing resolution to fund the government through February and avoid a shutdown. This means that there will be no changes to the previous budget until then, but it does give us more garner support for the provisions that we want to make sure are part of that spending package. That includes preventing the Department of Justice from targeting state-legal adult-use cannabis businesses and programs, SAFE Banking, improving access for veterans, expanding research, and more.
In better news, Reps. David Joyce (R-OH) and Alexandria Ocasio-Cortez (D-NY) partnered up to introduce a bill that would provide federal support for state-level expungement efforts. The Harnessing Opportunities by Pursuing Expungement (HOPE) Act would allocate $20million for a grant program to help reimburse states for the costs associated with expunging non-violent cannabis convictions. This is incredibly important because most of the federal expungement conversation has focused around federal convictions, yet the vast majority of arrests and convictions occur under state laws. Most states lack the resources and infrastructure to effectively address this issue at a large enough scale and in a manner that is affordable to the victims of prohibition who are just trying to clear their records of convictions for behavior that is now legal for a majority of Americans. It is wonderful to see bipartisan support for this important legislation, and we look forward to working with lawmakers to push it through as soon as possible.
That’s all for now, but stay tuned for further updates from Capitol Hill. And don’t forget to register for NCIA’s Cannabis Business Summit in San Francisco next week!
Video: NCIA Today – Friday, November 19, 2021
NCIA Deputy 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 Friday on Facebook for NCIA Today Live.
Thoughtful Legislation: States Reform Act Introduced
Photo By CannabisCamera.com
By Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations
Recent polling from Gallup showed that an astonishing 68% of Americans believe that cannabis should be legal. And while support spans age groups and party lines, cannabis is usually thought of as an issue Democrats champion – but one woman is looking to change that.
This week, freshman GOP Congresswoman Nancy Mace (SC) officially threw her hat in the cannabis reform ring with the introduction of the States Reform Act. Notably, this is the second comprehensive cannabis bill introduced by a Republican member of Congress (the other was sponsored by Rep. Dave Joyce, one of the co-chairs of the Cannabis Caucus).
According to Rep. Mace’s office, here are some of the things the bill does:
Ensures that no state or local government will be forced to change its current cannabis policies by removing cannabis from Schedule I and deferring to states.
Regulates cannabis federally like alcohol under USDA for growers, ATF/TTB for cannabis products, and FDA for medical use.
Institutes a low 3% federal excise tax on cannabis products to fund law enforcement, small business, and veterans mental health initiatives.
Ensures the safe harbor of state medical cannabis programs and patient access while allowing for new medical research and products to be developed.
Outlines the federal release and expungement for those convicted of nonviolent, cannabis-only related offenses. This will not include cartel members, agents of cartel gangs or those convicted of driving under the influence (DUI). Mace’s office estimates that approximately 2,600 releases will be expected at the federal level. State level releases and expungements will be left to each state to determine.
Protects military veterans by ensuring they will not be discriminated against in federal hiring for cannabis use or lose their VA healthcare benefits.
Protects children and young adults under the age of 21 from cannabis products and advertising nationwide. Incentivizes states to make cannabis illegal for anyone under the age of 21, with a medical exception for prescribed use. Provides funding to the Substance Abuse and Mental Health Services Administration to ensure protections for minors are being considered.
Protects medical cannabis for the following uses: arthritis, cancer, chronic pain, sickle cell, HIV/AIDS, PTSD and other medical uses per a state’s specific cannabis regulations.
NCIA applauds Rep. Mace for introducing this new and carefully thought out piece of legislation. There are many provisions in the bill that we support: low tax rates and barriers to entry, allowing states to lead – but also many areas with room for improvement like those pertaining to criminal justice and trade. NCIA will continue to work with Rep. Mace’s office to improve this bill and attempt to find common ground across political parties in order to advance cannabis policy reforms.
Allied Association Blog: Memories of the Campaign for Prop 215
Scanning my collected newspaper articles from the era for our slideshow has really brought back memories of my early activist days working toward The Compassionate Use Act of 1996, commonly referred to as Prop 215.
The year was 1995…
Those were the days when you had to say “water pipe” not “bong” for fear of being kicked out of a head shop. I once had a pipe shop refuse to carry hemp lip balm citing that it would imply that their pipes were being sold for marijuana use. Even some in the hemp industry were opposed to associating marijuana with hemp. That said, there were supporters of medical marijuana, and some who just needed education.
I was 24 years old and my relationship with the cannabis plant had been purely recreational. Then I made a new friend, Alan Silverman, who introduced me to a community (and career path) that changed my life. He took me to a screening of a new film, “The Hemp Revolution.” It was an eye-opening event with the director in attendance, and notably several Sonoma County businesses selling their industrial hemp wares. I was deeply inspired, not having known the history and multitude of uses of the plant. I joined the hemp industry with the contacts I met that night, distributing their wares to local shops and tabling at festivals and markets. It was more of a public education service than a profitable business, as many were not familiar with the hemp plant and some saw it as an excuse to promote marijuana. I transitioned into a day job with HempWorld, an industry magazine. These were fun years even if we were ahead of our time.
Which comes first?
Alan also told me about a state initiative campaign that was in the planning stages and educated me on the medicinal uses of marijuana. I had previously studied ecology, the idea that our environment has countless symbiotic relationships between lifeforms fascinated me. So, learning about the fiber, oil, and seed of the hemp plant while also gleaning information about medicinal benefits of marijuana just strengthened my impassioned advocacy for both. I felt at the time that consumable marijuana would need to be destigmatized before industrial hemp would ever have a chance.
Allies!
I joined the volunteer group which we at first called “Sonoma County Chapter Californians for Compassionate Use” to match the name of the state-level group behind the current campaign. The term “compassionate use” was not so well known; when I set up our voicemail, the representative thought we were advocating for “Compassionate Youth.”
Being our media liaison, a news reporter from the local TV station called me one morning. The story we had discussed fell through and he asked if there was anything else he could cover. In a few frenzied hours, I was able to find an oncology nurse from a local hospital willing to be interviewed in support of medicinal marijuana. She led me to a medical marijuana patient she knew, who introduced himself to me on the phone by saying, “I’ve been HIV positive for ten years, and I’m fat!” He wanted to be interviewed, too. Enough local activists joined us that afternoon in front of our County Board of Supervisors chambers to fill the camera frame. The nurse requested her interview be conducted apart from the activists, as to not appear a part of our group, which was better optics for our message. She was being brave and outspoken.
We made up small binders with recent news pieces supporting medical marijuana and sent them out to all our local media contacts. We included a commentary published in the Journal of the American Medical Association, an editorial from The Lancet, along with a Universal Press Syndicate piece by William F. Buckley, Jr, and a Cannabis Canada article, “Cannabis Buyers’ Club Flourishes in ‘Frisco,” written by Rose Ann Fuhrman, a fellow local activist and writer. The soon-to-be iconic red cross with overlayed green leaf image was printed for the covers of the binders.
Education was Essential
The cross and leaf image for the movement so effectively portrayed the topic, some of us, while gathering signatures, simply wore 11 x 8.5” signs with this image around our necks to gather attention of potential signers.
All in all, Sonoma County was an easy place to gather signatures on this issue. Rather than approach people individually, I’d stand in a trafficked area and repeat the same spiel, it was along the lines of “Sign the medical marijuana petition, it helps with epilepsy, multiple sclerosis, chemotherapy, glaucoma…” I remember one man who walked right past me into a grocery store parking lot, only to turn around when I verbalized the ailment that affected his family member. Another signer who stood out was attending a concert. He walked up to me in the free speech zone between the parking lot and the venue. Signing his name, he said, “I’m a cop. I’m tired of the hypocrites.”
The local coverage that I was most excited about occurred on Friday, November 1, 1996, four days before the election. Elvy Musikka had been traveling around California speaking in favor of Prop 215. Elvy was interviewed by The Press Democrat newspaper about being one of eight people in the United States who not only could legally smoke marijuana, but also was being provided joints by the federal government. The story ran with a large photo of Elvy smoking a legal joint in my living room. Elvy will be speaking at the Cal NORML conference.
Meeting Dennis
Another inconsistency with what most knew at the time was the existence of the San Francisco Cannabis Buyers’ Club. Founded by Dennis Peron, who also wrote San Francisco’s Prop P, this ground-breaking club was raided by the DEA, but enjoyed great local support. Prop P passed by 80% of San Francisco voters in 1991, basically making marijuana possession and cultivation the lowest priorities for law enforcement. Dennis, who passed away in 2018, is a legend in the world of medical marijuana. I had the unexpected experience of meeting him when Rose Ann and I went to his club to pick up the initiatives for our group to collect signatures. We all had barely begun when informed that the first initiatives had a printing error and needed to be replaced. We had car trouble in the city and Dennis invited us to stay overnight in the club, an historic experience I relish. Dennis will be represented at the 25th Anniversary event via a recorded statement and through his family members, Jeff and Bryan Peron.
It was an exhilarating time for me, I met many truly impressive activists, authors, and businesspeople who were inspired to make the world a better place. I felt I was making the world a better place. Ellen Komp, one of my co-workers from my years with HempWorld, went on to become the Deputy Director for California NORML, she hired me onto the organization in 2017. For the 25th Anniversary of Prop 215 events this week, I will be celebrating with many of the folks who made 215 possible. I hope you’ll join us in honoring the history that launched the modern industry.
Kharla Vezzetti is the Business Membership and Advertising Manager for California NORML, a non-profit, member-supported organization that has been advocating for sensible and fair cannabis laws since 1972. She can be reached at kharla@canorml.org
Video: NCIA Today – Friday, October 29, 2021
NCIA Deputy 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 Friday on Facebook for NCIA Today Live.
On the latest episode, Bethany announces the keynote speakers at #CannaBizSummit this December in San Francisco, checks in with some spooky, chilling tales of compliance gone wrong, and checks in with NCIA Deputy Director of Public Policy Rachel Kurtz-McAlaine about some serious slowdowns in the vape sector.
Registration to the Cannabis Business Summit in San Francisco is now open with special limited time super early bird pricing on tickets available, head to our website for more information today.
The PACT Act Final Rule Has Been Released Prohibiting the Mailing of Cannabis/Hemp Vaporization Products. Is Your Business Ready?
By Rachel Kurtz-McAlaine, NCIA’s Deputy Director of Public Policy
After months of delay, the United States Postal Service (USPS) has released its FINAL rule enforcing the Prevent All Cigarette Trafficking (PACT) Act, effective October 21, 2021, and unfortunately, they are indeed applying it to cannabis/hemp vaporization products. The PACT Act has now made it extremely difficult for anything related to vaporization to be mailed, either business to business (B2B) or business to consumer (B2C). Your business could be affected even if you are not mailing out products. Although this is a massive burden on the cannabis/hemp vape industry, there are ways to deal with it. NCIA remains vigilant in making sure the federal government understands this unnecessary hardship to the industry, and making sure our members are fully educated on this issue.
What is the PACT Act?
The Prevent All Cigarette Trafficking (PACT) Act went into effect June 29, 2010, applying strict regulations to the mailing and taxation of cigarettes and smokeless tobacco products, effectively banning the mailing of cigarettes unless authorized by an exception. With the rise of e-cigarettes, especially their popularity among youth, Congress decided that vaporization products should be included in those provisions. On December 27, 2020, Congress modified the definition of “cigarettes” to include Electronic Nicotine Delivery Systems (ENDS), broadly defining ENDS to include nearly all vaporization products, regardless if they contain nicotine or are used for nicotine. Specifically:
“(1) any electronic device that, through an aerosolized solution, delivers nicotine, flavor, or any other substance to the user inhaling from the device; and (2) any component, liquid, part, or accessory of an ENDS, regardless of whether sold separately from the device.”
When the USPS issued their notice of proposed rulemaking, they received more than 15,700 comments, with many expressing frustration with the broad interpretation of ENDS, so the USPS delayed issuing FINAL rules while it considered the practical application to the unique cannabis and hemp industries. NCIA was proud to submit comments with a broad coalition and to issue an action alert to get our members to express their concerns.
In the meantime, the USPS issued a guidance document (“April 2021 Guidance”) (86 FR 20287) to help prepare businesses for the final rule and what documentation will be needed to apply for an exception. The exceptions include:
Intra-Alaska and Intra-Hawaii Mailings: Intrastate shipments within Alaska or Hawaii;
Business/Regulatory Purposes: Shipments between verified and authorized tobacco-industry businesses for business purposes, or between such businesses and federal or state agencies for regulatory purposes;
Certain Individuals: Lightweight, non-commercial shipments by adult individuals, limited to 10 shipments per 30-day period;
Consumer Testing: Limited shipments of cigarettes sent by verified and authorized manufacturers to adult smokers for consumer testing purposes; and
Public Health: Limited shipments of cigarettes by federal agencies for public health purposes under similar rules applied to manufacturers conducting consumer testing.
18 U.S.C. 1716E(b)(2)-(6). These exceptions are the ONLY way to mail these products moving forward. Unfortunately, the USPS was not accepting applications for exceptions until the final rule was published, but now that it has been published, it is time to apply for an exception.
FedEx and UPS have already banned delivering these products, so they are out as an alternative.
How can it affect me?
If you manufacture, sell, or buy vapor products, you will be affected. Manufacturers and distributors who use the mail to get their products to stores for resale (B2B) will have to apply for an exception through the USPS Pricing and Classification Service Center. If you are a business receiving these products, you will have to work with the business that mails it to you to be included in their exception as a recipient. If you are a retailer who delivers vaporization products to consumers via the mail, such as online retailers (B2C), you will also need to apply for an exception. If you buy the end products as a consumer, expect an increase in price because of the extra costs placed on the suppliers.
What should I do?
If your business has ANYTHING to do with the manufacture, delivery by mail, or retail of cannabis/hemp vaporization products, including liquids, batteries, empty cartridges, etc., you should get familiar with this final rule that is in effect as of October 21, 2021. The USPS spends the time addressing potential issues or suggestions from the comments it received, so any questions of why they did something are probably answered there.
You will also want to read the guidance document the USPS issued in the Spring that details if you qualify for an exception and how to apply for it. This will require cooperation between the mailer and the recipient, so make sure you are working with your supplier/retailer to get all the necessary information.
What is NCIA doing?
NCIA remains committed to making sure our members understand all of the legal ramifications and how to continue operations despite this rule. We continue to work with our coalition partners to better understand the effects and best practices, and will share with you as much information as possible to ease the transition via blog posts and webinars.
by Aaron Smith, NCIA’s CEO and Co-founder
By Sadaf Naushad, NCIA Intern
by Morgan Fox, NCIA’s Director of Media Relations
The cross and leaf image for the movement so effectively portrayed the topic, some of us, while gathering signatures, simply wore 11 x 8.5” signs with this image around our necks to gather attention of potential signers. 
By Rachel Kurtz-McAlaine, NCIA’s Deputy Director of Public Policy