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.

Oklahoma O-Kays Medical Cannabis Ballot Initiative

On Tuesday, voters in Oklahoma approved a measure that will make medical cannabis legal in the state with over 56% popular support.

The referendum, known as SQ 788, will allow patients 18 and older to use medical cannabis to treat their conditions with a recommendation from their doctor, and individual under the age of 18 would need the signatures of two physicians and his or her parent or legal guardian. Physicians can recommend cannabis for any condition for which they think cannabis would be a helpful treatment.

With the addition of Oklahoma, there are now effective medical cannabis laws in 30 states, as well as the District of Columbia, Guam, and Puerto Rico. A total of 46 states allow for the medical use of cannabis in some form.

“In spite of a well-financed and misleading opposition campaign, Oklahoma voters proved that medical cannabis is no longer a controversial issue by enacting a sensible law at the ballot box tonight.” said Aaron Smith, executive director of the National Cannabis Industry Association (NCIA). “The passage of this law is not only a great victory for some of the Sooner State’s most vulnerable citizens – it will also create new business opportunities as the state’s underground market for medical cannabis is replaced by licensed businesses with the potential to create thousands of jobs and millions in new tax revenue,” continued Smith.

About SQ 788
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Oklahoma state will establish rules governing the licensing and regulation of facilities to cultivate, process, and dispense medical cannabis, and allows patients to cultivate limited amounts of medical cannabis at home.

The passage of SQ 788 marks the first time that a state medical cannabis ballot initiative has been approved by voters in an electoral primary. Observers were skeptical of the initiative passing in an unprecedented election cycle, particularly given strong and well-funded efforts from opponents to the referendum in the months before the vote.

 

Guest Post: Mr. Seeb Goes To Washington

by Ean Seeb, Denver Relief

Editor’s Note: In January, Ean Seeb, who serves on the Board of Directors for NCIA and is co-founder of Denver Relief and Denver Relief Consulting, coordinated with NCIA’s Director of Government Relations Michael Correia to arrange personal meetings with congressional offices in Washington, D.C.

Ean Seeb speaks at NCIA's Policy Symposium in 2015
Ean Seeb speaks at NCIA’s Policy Symposium in 2015

In December, while planning for a January business trip to Washington, D.C., I realized that I should take the opportunity to use some downtime to lobby Capitol Hill offices on issues affecting the cannabis industry. I reached out to NCIA’s Executive Director Aaron Smith and Director of Government Relations Michael Correia and announced my intention. I was amazed at their responsiveness and support for my idea.

The whole planning process was quite easy. I let them know the date I was available and the focus of my trip and let the D.C. office coordinate logistics. Denver Relief Consulting has business interests in Hawaii and I wanted to focus on that state’s Congressional delegation. My goals were to update offices on medical marijuana implementation in Hawaii and ask these offices to co-sponsor The Small Business Tax Equity Act of 2015 (S. 987 & H.R. 1855), which amends Internal Revenue Code Section 280E to allow cannabis businesses in compliance with state law to take standard tax deductions and credits relating to business expenses.

The trip went very smoothly. I met up with Michael the evening before our meetings to discuss issues and logistics. Although I am well-versed on issues affecting our industry, it was really informative for me to sit down with him and discuss our focus, strategy, and talking points. We were joined by NCIA Member Tae Darnell, CEO of Sensi Media, whose background on cannabis reform in Hawaii goes back many years and was a great asset to our meetings.

 

 

We visited offices in both the Senate and House of Representatives, and each office was very informed about cannabis issues, was responsive to our concerns, and asked insightful questions. I remember back in 2013 when NCIA held its 3rd annual member lobby days. During those meetings, staffers would drop their jaws and say “You’re here to talk about what?” It was almost humorous because, back then, staffers were still in shock that cannabis issues were being brought to them. This time, one of our meetings lasted a full hour! The reception from congressional offices has evolved significantly over the past five years, and that can be attributed to the work NCIA has done on the ground.

 

The National Cannabis Industry Association's 5th Annual Lobby Days in Washington, D.C.
The National Cannabis Industry Association’s 5th Annual Lobby Days in Washington, D.C.

Although our meetings were with Democratic offices, who tend to be supportive of our issues, they were still not co-sponsors of legislation that would solve our 280E tax problems. The offices really appreciated tying the issue to Hawaii and answering questions specifically related to the state and how 280E will negatively affect their constituents. Each of the offices will discuss co-sponsoring legislation in the future, and our D.C. office will continue working with them to gain their support.

I did my homework with information provided by NCIA through newsletters, packets, and the website. An hour’s worth of studying on the front end made for some really powerful and effective meetings. As an NCIA member, it was personally and professionally fulfilling to be able to leave the Capitol thinking, “Today, I made some good progress on our issues, and for our industry, through the work done with these folks.”

 

I wholeheartedly encourage other NCIA members not only to go to NCIA’s 6th annual Member Lobby Days in May — but also to go to D.C. on your own. The NCIA Government Relations team will be there with you every step of the way.

As I was leaving, Michael said, “Please tell other members who happen to be traveling to D.C. that we are available for any NCIA member, at any time, who wants us to coordinate personal meetings with congressional offices.”

If you are interested in contacting NCIA’s Government Relations department to schedule meetings with Members of Congress in Washington, D.C., please email Government Relations Coordinator Michelle Rutter at michelle@thecannabisindustry for more information. 


 

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2016: What’s Next?

by Michelle Rutter, Government Relations Coordinator

This year is arguably the most crucial yet for the burgeoning cannabis industry, especially as it relates to policy. Although NCIA primarily advocates for cannabis reform at the federal level, what happens in each individual state is vital to the stances Members of Congress take on our issues.

Members of Congress care deeply about issues that directly affect their specific state or district. It’s imperative that more states enact cannabis reform legislation so that more Members have a vested interest in protecting their constituents. While cannabis reform is sweeping the nation at an almost unprecedented rate, it takes time for politicians in Washington, D.C., to catch up with public opinion back home. If all of the federal lawmakers representing just the 15 states mentioned below were to vote positively on pro-cannabis legislation, it would add up to more than 180 Representatives and nearly 30 Senators.

Take a look below and see what’s coming up next in 2016. Remember that by becoming a member of NCIA, you are adding your voice to the coordinated and unified campaign at the federal level to allow cannabis businesses access to financial services, fix tax section 280E, and ultimately end federal cannabis prohibition.

The United States of Cannabis

          • Arizona activists remain ahead of schedule and have nearly gathered the 150,000 signatures needed to put the state’s Campaign to Regulate Marijuana Like Alcohol initiative on the November 2016 ballot. (The campaign ultimately aims to collect 230,000 in order to insure against signature drop-off.) It’s estimated that Arizona’s adult-use market could be worth up to $480 million.
          • With a multi-billion-dollar cannabis industry in California alone, passing an adult-use legalization initiative in the state is vital to ending federal prohibition. The most prominent full retail initiative gathering signatures for the November 2016 election is the Adult Use of Marijuana Act, which is backed by billionaire Sean Parker and the Marijuana Policy Project.
          • Legalize Maine and the Marijuana Policy Project have joined forces to legalize adult-use cannabis in 2016. Legalize Maine has already collected 80,000 signatures. Only 61,000 signatures are necessary to place the measure on a statewide ballot, but the organization’s goal is 95,000, to insure against drop-off. The deadline to submit signatures is February 1st.
          • Last August, a pair of cannabis advocacy groups separately filed paperwork to get adult-use legalization on the 2016 ballot in Massachusetts. The state recently confirmed that a measure to legalize recreational cannabis next year has enough valid signatures to force the legislature to consider the measure. If the legislature decides to pass, then the campaign will have to collect another 10,792 signatures to formally make the November ballot.
          • There’s no question that adult-use legalization will be on the ballot this year in Nevada. Initiative Petition 1, which would tax and regulate marijuana similarly to alcohol, has been certified for the 2016 ballot. Backers had previously collected nearly 200,000 signatures to either force legislators to enact their initiative or put it on the ballot. When state lawmakers abstained from voting on the issue, the measure was automatically forwarded to this year’s ballot for a popular vote.
          • In Florida, the group United for Care received clearance from the state Supreme Court for a 2016 ballot measure that would legalize medical marijuana. The group nearly succeeded in legalizing medical marijuana in 2014, garnering 58% of the vote but falling barely short of the state’s constitutionally mandated 60% margin needed to pass, 
          • The nation’s capital continues to debate cannabis. In December’s federal budget bill, the taxation and regulation of marijuana in Washington, D.C., was blocked by Congress again, though possessing and gifting cannabis remains legal in the city.
          • This month, Hawaii will begin accepting applications for medical cannabis businesses. The bill signed into law last summer opens the door for up to 16 dispensaries on the islands.
          • It was recently announced that Illinois saw approximately $1.7 million in medical cannabis sales during November and December of 2015. There are already petitions being circulated in the state that would expand the law’s qualifying conditions.
          • Maryland will award cannabis cultivation, processing, and dispensary licenses this summer. Industry advocates were pleased with the amount of interest the state’s program garnered: more than 1,000 applications were submitted.
          • Officials in Michigan have approved language for three different adult-use cannabis legalization initiatives for the 2016 ballot. In order to have the best chance of passing, it’s important for these groups to coalesce behind one initiative.
          • At the end of 2015, New Hampshire began issuing medical marijuana cards to qualifying patients. It’s expected that the state will open medical dispensaries in 2016.Map-of-US-state-cannabis-laws
          • After a long and arduous journey, New York’s medical cannabis program became operational this month. The cannabis industry expects the program and the law’s qualifying conditions to expand this year.
          • In the first week of 2016, Oregon began accepting adult-use cannabis business license applications. The state has no limit on how many licenses they will decide to award.
          • Vermont may become the first state to legalize adult-use cannabis through the legislative process in 2016. The proposed bill would allow for up to 86 storefronts and five different business license types.

 

Bonus: Election 2016 – Yes, We Canna

            • As we all know, a new president will be elected this November, and with that a new administration will assume power next January. It is very crucial that Congress pass more pro-cannabis legislation before then.
            • It’s probable that Attorney General Loretta Lynch will be replaced in 2016 or early 2017. This is important because it is the Department of Justice that enforces and prosecutes federal marijuana laws.
            • Another possibility for 2016 is that the acting head of the Drug Enforcement Administration, Chuck Rosenberg, could be replaced as well. Rosenberg is notorious for his gaffe last year when he called marijuana “probably” less dangerous than heroin.
            • On New Year’s Eve, officials from the Substance Abuse and Mental Health Services Administration posted a notice on the Federal Register that calls for a report “presenting the state of the science on substance use, addiction and health” to be released in 2016. Industry advocates are hopeful that this report could be the first sign of re- or de-scheduling cannabis from the Controlled Substances Act.
            • During 2016, NCIA will continue working with D.C.-based public affairs firms Heather Podesta + Partners, and Jochum Shore & Trossevin PC to magnify our efforts to address the industry’s top federal priorities: access to basic banking services and fair federal taxation.

 

In addition to NCIA’s lobbying and advocacy efforts, NCIA exists to connect and educate our members on all facets of the cannabis industry. Our industry supports tens of thousands of jobs, tens of millions in tax revenue, and billions in economic activity in the United States. Our core mission is to ensure that our members are treated like businesses in any other American industry. Join NCIA today to get involved and be a part of the cannabis revolution!


Join us for our 6th Annual NCIA Member Lobby Days in Washington, D.C. on May 12 & 13, 2016.

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Announcing NCIA’s January – June 2016 Events Calendar

As we head into the new year, we wanted to share with you our upcoming event calendar for the first 6 months of 2016! This includes the Q1 and Q2 events in our new event series, the Quarterly Cannabis Caucuses, a fundraiser for our federal PAC where members of our Board of Directors will be present, our 6th annual Federal Lobby Days, and our 3rd annual Cannabis Business Summit.

Click on the images below for more information on the upcoming events.

Quarterly Cannabis Caucuses

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6th Annual Federal Lobby Days
Cannabis Business Summit

So what are you waiting for? Register for an upcoming event today!

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Do you have questions regarding any upcoming events in your area or others across the country? Reach out to events@thecannabisindustry.org any time with your questions, comments, or concerns.

Interested in sponsoring one or a series of events in a particular region throughout the year in order to gain valuable exposure for your company to our nationwide network of established business owners? Please contact Brian Gilbert at brian@thecannabisindustry.org for more information on series rates and associated discounts for packages.

Interested in speaking at the upcoming Cannabis Business Summit? Please contact brooke@thecannabisindustry.org for more information on remaining opportunities.

Appropriations Pros and Cons in 2015 for Cannabis

by Michelle Rutter, Government Relations Coordinator

Every year, Congress must pass appropriations legislation to fund the government for the upcoming fiscal year. This annual funding bill has been one of the only avenues by which pro-cannabis reform language can be inserted into the federal budget, due to Congress’ inability to pass meaningful stand-alone legislation addressing the legal cannabis industry.

This year, two riders were included in the budget bill pertaining to cannabis. The first, known as the Rohrabacher-Farr amendment, bans the Department of Justice 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. When debated on the House floor this summer, the vote count increased from 219-189 in 2014 to 242-186 this year, with 67 Republicans voting ‘Yes.’ The Rohrabacher-Farr language was included in the final budget bill for the second year in a row, which is a promising sign of progress in Washington, D.C.

A rider known as the Bonamici-Massie amendment, which prevents the DEA from intervening with state-sanctioned and legal hemp, was also included in the final budget package. This section blocks federal money from being used to prevent states from allowing the use, distribution, possession, or cultivation of industrial hemp. It’s important to note that although this progress is promising, the DEA has ignored appropriations language pertaining to cannabis in years prior.

There were other commonsense policy reforms related to cannabis, which were proposed and added to earlier versions of the budget package, but which unfortunately did not make it into the final bill. A crucial example was a provision which would have prevented the Treasury Department from punishing banks that work with legitimate marijuana-related businesses. Another would have allowed Veterans Affairs (VA) doctors to recommend medical cannabis to veterans without fear of retaliation or punishment, and would have also prevented the VA from denying services to any veteran who is a medical marijuana patient.

An additional disappointment in the final budget package was the continuation of language from the previous year which blocks the adult-use sale and purchase of cannabis in Washington, D.C.

It’s important to remember that these appropriations amendments only protect states’ medical cannabis and hemp laws for the upcoming fiscal year and have to be re-included and voted on every year. While this progress is encouraging, it falls short of achieving our goals. NCIA will continue lobbying on behalf of the cannabis industry to achieve the substantive and lasting reforms that our businesses deserve.

Announcing the Quarterly Cannabis Caucus Event Series

Wow, where does the time go? The end of 2015 is in sight and 2016 is fast approaching! As per usual, these past 12 months made for another landmark year for our industry where we saw enormous growth across all sectors, as well as witnessed notable legislative victories in the House and the historic first-time introduction of cannabis-specific legislation in the Senate. We continue to see increased activity and support for our issues in D.C., due in no small part to our increasingly prominent voice within the halls of Congress, spearheaded by the work NCIA is doing with your support.

Take a look at a year’s worth of legislative highlights with our Year-in-Review timeline here.

Now, we are excited to announce that starting in January, we’ll be debuting a new nationwide event series! NCIA’s Quarterly Cannabis Caucuses will be held in the cannabis industry’s 12 most active regions, on Tuesdays and Thursdays in the first month of each new quarter. The exact date will vary depending on your region, and you can view the full list of dates and locations here. The schedule for the first quarter will be:

  • Oregon Cannabis Caucus – Portland, OR – Tuesday, January 12 – REGISTER NOW
  • Mid-Atlantic Cannabis Caucus – Washington, D.C. – Tuesday, January 12 – REGISTER NOW
  • Northeast Cannabis Caucus – Boston, MA – Thursday, January 14 – REGISTER NOW
  • Florida Cannabis Caucus – Orlando, FL – Thursday, January 14 – REGISTER NOW
  • Midwest Cannabis Caucus – Chicago, IL – Tuesday, January 19 – REGISTER NOW
  • Tri-State Cannabis Caucus – New York, NY – Tuesday, January 19 – REGISTER NOW
  • Colorado Cannabis Caucus – Denver, CO – Thursday, January 21 – REGISTER NOW
  • Southwest Cannabis Caucus – Phoenix, AZ – Thursday, January 21 – REGISTER NOW
  • Nevada Cannabis Caucus – Las Vegas, NV – Tuesday, January 26 – REGISTER NOW
  • So. California Cannabis Caucus – Los Angeles, CA – Tuesday, January 26 – REGISTER NOW
  • No. California Cannabis Caucus – San Francisco, CA – Thursday, January 28 – REGISTER NOW
  • Washington Cannabis Caucus – Seattle, WA – Thursday, January 28 – REGISTER NOW

As NCIA heads into our sixth year of operation, we’re committed to growing and evolving our work to provide increased value to our members and reflect our unique position with the industry. The Quarterly Cannabis Caucuses have been designed to provide the quality and consistent programming you’ve come to expect from NCIA events, while also preparing you and your business to contribute to our legislative efforts on the national level.

You and your team will leave each Cannabis Caucus equipped with the tools to affect positive change on cannabis issues while making meaningful connections with vested industry players. Each Caucus will be free of charge for current NCIA members and include an in-depth federal policy update from senior NCIA staff or staff from a district congressional office, a comprehensive state and local policy update from a local elected official or a member of NCIA, an informational packet filled with detailed legislative analysis and recent federal policy developments, and an organizational update so you can keep up to date with what NCIA is doing for you. All of this will be offered as well as the opportunity to network with the leaders in the cannabis industry.

The Caucus also serves as an opportunity for our members to share their ideas and concerns with NCIA, which is committed to serving the industry in the best way possible

As the only national trade association representing cannabis business owners on Capitol Hill, we are your voice within the halls of Congress on a daily basis. We take this responsibility seriously and by holding these quarterly member meetings, we hope you’ll take advantage of this opportunity to make your own voice heard within our ranks as well.

Every day it seems a new event is popping up, vying for your time, money, and focus. We here at NCIA know that our members’ time is one of their most valued assets, so we’ve created this event series to pack maximum information, value, and member benefit into a regular quarterly meet-up.

Start 2016 off right! Register yourself and your colleagues for an upcoming Quarterly Cannabis Caucus near you today!

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Do you have questions regarding the upcoming Quarterly Cannabis Caucus in your area or others across the country? Reach out to events@thecannabisindustry.org any time with your questions, comments, or concerns.

Interested in sponsoring one or a series of events in a particular region throughout the year in order to gain valuable exposure for your company to our nationwide network of established business owners? Please contact Brian Gilbert at brian@thecannabisindustry.org for more information on series rates and associated discounts for packages including NCIA’s Cannabis Business Summit 2016, taking place in Oakland, CA, June 20-22.

Timeline: 2015 Legislative Year in Review

by Michelle Rutter, Government Relations Coordinator

As we look forward to 2016, there’s much on the horizon for the cannabis industry. NCIA remains dedicated in its effort to pass banking and tax legislation through Congress that would provide immediate relief to cannabis-related businesses all over the country.

In addition to the federal advocacy that NCIA engages in every day, there will be at least five states seeking to legalize and regulate adult-use cannabis via the ballot initiative process: Arizona, California, Maine, Massachusetts, and Nevada. It’s also likely that Florida will have another ballot initiative relating to medical cannabis, and it’s possible that other states will move forward with cannabis reform through ballot initiatives or legislative processes. What happens over the next twelve months will be crucial in shaping the future of the legitimate and responsible cannabis industry.

While 2015 was a milestone year for cannabis reform, that same momentum will be necessary in order to continue moving the conversation forward with Congress in Washington, D.C. The Rohrabacher-Farr medical cannabis amendment earned more that 60 Republicans votes. For the first time ever, there are multiple pro-cannabis bills that have been introduced in the U.S. Senate. Continued progress is vital in garnering more national support for cannabis reform, so make sure your interests are heard through national advocacy, education, and community with NCIA.

The timeline below lays out some of the highlights from a busy year in cannabis industry advocacy. We look forward to more exciting milestones with your help in 2016!

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Guest Post: Legislation, Rule-Making, and the Necessity to Be a Unified Industry

teamworkBy John Davis, Northwest Patient Resource Center

In the 2015 legislative session, much changed in Washington State cannabis law. As with any change in cannabis law in any state, there is much drama that happens after such a change. Usually there is much bickering, finger-pointing, rumors, and misinformation in general. People seem to come out of the woodwork with often nonsensical interpretations of the new law. This often makes me wonder where they were during the legislative session when they may have been able to change the details that seem to trouble them now.

The fact is that all laws passed are imperfect. They are going to need to be fixed and those fixes are going to need to be fixed. There is not just one person that writes what is passed as law. There is a plethora of authors that include industry, interest groups, law enforcement, localities, citizen groups, and many others. Omnibus laws are going to advance some things and create problems elsewhere. This is to be expected.

The thing about law is, once it has passed and been signed by the Governor, it is what it is until the next session. This is not the time for bickering for those that are serious about making positive change. This becomes a time to work together. Once a bill becomes law, the legislative verbiage is put through a process called “rule-making.” In this rule-making, things can be steered within the framework of the law. In addition, the time before the next legislative session is a perfect time to solicit consensus and to author and shop legislative verbiage to potential bill sponsors.

After passage, no matter whether you like the law or not, it needs to be studied. It should be done dispassionately. It should be done section by section. You should ask yourself:

  • What does this section say?
  • What is the legislative intent of the section?
  • What is the synopsis of the section?
  • What rule-making does this section call for and by which agency?
  • Are there things in this section that need to be changed in subsequent legislative sessions?

You should write your answers to these questions down so that you can refer to them later. This is the way that you can be most effective at influencing rule-making and achieving success in subsequent legislative sessions. Really, how are you to influence rule-making when you don’t know what rule-making is going to happen with which agency? How are you going to achieve consensus enough to get changes in a legislative session when you don’t know specifically what needs to change?

We in the cannabis industry need to stop the self-destructive habit of thinking of legislative changes as “good” or “bad.” During session we need to do our best to be influential to produce the best results possible. After a law is passed we must come together to produce the best possible results in rule-making and plan for the next legislative session. To do this we need to stop finger-pointing and work together. Divisiveness and name-calling poisons the well for consensus-building.

Approaching a rule-making body or legislature as one person or organization is not going to be very influential.

Approaching the same as an industry with a common voice is powerful and will be extremely helpful in creating positive change.

We must put aside the pettiness and ego and work together for the betterment of the industry and the movement. Those that are willing to work together need to be finding the others that are willing to work together. We need to be focused on listening to others in the industry to understand what their ideas and concerns are. We need to include the end users and to consider their points of view. We need to have patience with each other. We need to put in the work to build consensus on the changes that need to be made. We need to be willing to compromise for the greater good. We need to accept that what happens in the end will not be perfect. We need to, in short, be an industry.

Prohibition is the enemy, not each other. To that end, we have been working to bring together the various industry groups in Washington State to form a super organization that is allied in its purpose. The Coalition for Cannabis Standards and Ethics, CAUSE-M, WAMJA, WMA and Northwest Producers, Processors, and Retailers have formed a Steering Committee to bring these organizations under a common banner. These groups represent the full spectrum of the industry, consisting of producers, processors, retailers, and ancillary businesses. It is my belief that there needs to be industry consensus even when there may be differences in perspective. Retailers and producers working against each other in a lobby effort really just has the effect of negating both. We are looking forward to merging together and ultimately forming a commission that is state-recognized.

Together we will move into the future.


John Davis, Northwest Patient Resource Center
John Davis, Northwest Patient Resource Center

John Davis, an entrepreneur and drug policy activist in Seattle, is founder of Northwest Patient Resource Center. After managing the oldest and longest running medical cannabis dispensary in the state, Compassion In Action, John founded Northwest Patient Resource Center, where he currently serves as the organization’s Chief Executive Officer. John is a founder of the Coalition for Cannabis Standards and Ethics (CCSE) and currently serves as the Executive Director of the industry group. He also chairs the CCSE Access Point Subcommittee. John is on the Board of Directors of the National Cannabis Industry Association (NCIA) and the Cannabis Defense Coalition (CDC), and is on the Advisory Board for Blue Sage Microbes and Life Sense Technologies.

Guest Post: Deal for Regulations Passes California Legislature

by Nate Bradley, Executive Director of California Cannabis Industry Association

We did it! After almost 20 years without statewide regulations, the California State Legislature has taken an important first step in creating a legal framework for medical cannabis. On September 11th at 11:47 pm, CCIA staff watched as the legislature sent a package of bills to the Governor’s office. Those bills – AB 266, AB 243, and SB 643 – combined to make the Medical Marijuana Regulation & Safety Act (MMRSA).

The MMRSA establishes the Bureau of Medical Marijuana Regulation under the Department of Consumer Affairs. The Department of Food and Agriculture has responsibility for regulating cultivation and processing, the Department of Public Health is tasked with developing standards for the manufacture, testing, and production and labeling of all cannabis products, and the Department of Pesticide Regulation oversees developing pesticide standards. For more information on what this legislation does, please check out CCIA’s “MMSRA Cheat Sheet” here.

CCIA LogoCCIA members, board, and staff were central to the process — advocating for the cannabis industry and pushing back against the most harmful proposals. The resulting legislation isn’t perfect, but it’s an important first step towards a safer, more professional industry. Click here for more information on CCIA’s legislative victories in the 2015 legislative year.

We think it’s fair to say most CCIA members understand the need for regulation and are glad California has started the process. That said, we believe parts of the bills need fixing. We are eager to hear what you think. We will continue relying on feedback from our allies in the industry to help us develop follow-up legislation — and to take part in the rule-making process — to address these issues. That said, the clear message from our members has been: even strict regulation is better than no regulation at all.

Nate Bradley, cofounder of the California Cannabis Industry Association, an independent state affiliate of NCIA
Nate Bradley, cofounder of the California Cannabis Industry Association, an independent state affiliate of NCIA

We also hope this legislation will put California in compliance with the U.S. Department of Justice guidelines, which ought to end federal prosecution of lawful cannabis operators in California. The citizens of California spoke clearly when they voted for medical cannabis in 1996; their elected representatives have just spoken again. We hope the federal government will respect California’s clear desire to have a well-regulated medical cannabis industry.

Our expectation is that California will now be able to take its rightful place as the center of investment and innovation in the cannabis economy. Governor Brown and his colleagues in the legislature have just given the green light to let California’s cannabis industry become the thriving, tax-paying, job-creating industry it was always destined to become.


Nate Bradley, based in Sacramento, is the executive director and cofounder of the California Cannabis Industry Association (CCIA). He is responsible for CCIA’s public policy advocacy and political strategy in California’s State Capitol. Nate also has ten years of education and experience in law enforcement and is a speaker for Law Enforcement Against Prohibition (LEAP).

Guest Post: Marijuana Victory in Oregon! Now What?

Oregon passes Measure 91, legalizing cannabis for adults on November 4th, 2014

By Ford T. Pearson, Flip-Side Magazine

[Editor’s note: Congratulations to everyone who worked so hard on the Measure 91 campaign to pass legal cannabis laws for adults in Oregon. The initiative passed with 52% of the vote. Well done! – Bethany Moore, NCIA]

(Excerpt submitted by Flip-Side Magazine)

Measure 91, Oregon’s adult-use marijuana legalization initiative, is likely the most elegant articulation of US regulated marijuana enterprise to date.

To be fair, Flip-Side Magazine’s paradigm of what is a good piece of marijuana legislation is heavily skewed by the economic opportunity it presents for stakeholders. While it’s clear the authors of Measure 91 remedied many of the flaws within Colorado and Washington state’s still new marijuana programs, where the measure really excels is the astounding potential for commercial endeavor.

Wholesaler category

“’Marijuana wholesaler’ means a person who purchases marijuana items in this state for resale to a person other than a consumer in this state.” —Measure 91

Measure 91 includes four stakeholder categories for which you can apply for a license. Like Washington’s I-502 categories, Measure 91 categories include producer (grower), processor, and retailer licenses. But Measure 91 also includes an exciting new category: wholesaler. The wholesaler license category, missing from Washington’s marijuana program, will make life easier for Measure 91 producers/processors and expand employment within Oregon’s marijuana program. As Washington’s I-502 producer/processors are now learning, selling marijuana can be an extremely daunting task. Even with just 66 of the planned 334 retail stores open, many I-502 processors are surprised at how time-consuming it is to manage and reconcile the preferences of 66 different buyers. Under Washington’s I-502 rules, processors have to sell directly to retailers or hire third-party marijuana sales or strain acquisition consultants to facilitate sales activities for them. Those consultants have to provide their services within a very narrow definition of activity in order to keep the transactions compliant with I-502 rules. Among the restrictions they face is the inability to actually purchase and resell marijuana the way a traditional wholesaler would. Oregon’s Measure 91 wholesaler category provides a remedy for that specific limitation and adds an entirely new facet of economic opportunity to Oregon’s implementation of a regulated, legal marijuana industry.

No “tied house” prohibition

“The same person may hold one or more production licenses, one or more processor licenses, one or more wholesale licenses, and one or more retail licenses. ” —Measure 91

Measure 91 allows for a completely vertically integrated marijuana organization. For example, under its generous licensing scheme, Measure 91 stakeholders could own several producer/processor operations, a couple of wholesale operations, and dozens of retail outlets throughout the state. Allowing this kind of structure not only increases economic opportunity, but also creates an environment that can eliminate inventory volatility and would enable micro-chains to provide consistent and reliable access to the most marketable strains of marijuana and marijuana products.

No residency requirement!

Perhaps the most significant characteristic of Measure 91 is that it does not require stakeholders to be residents of Oregon. Both Colorado’s and Washington’s programs restricted engagement (including investment from speculators) of their legal marijuana industries to residents of the state. I have to admit, when I first learned of this characteristic of Measure 91, I was disappointed. I’ve spoken to literally hundreds of I-502 applicants and licensees, and every single one of those was a small, usually family-run, business. Once Washington’s cannabis program catches its stride, those families will lay claim to their share of a half-a-billion-dollar-a-year industry, and that’s a beautiful thing.

After considering it, I think the benefits the non-residency characteristic presents likely outweigh the negatives. True, one could worry about giant companies coming into Oregon and buying up all of the strategic locations and/or resources needed to grow Oregon’s new marijuana industry, and that’s certainly possible under Measure 91 rules. However, even if that did occur, those out-of-state entities would rely upon locals to implement their plans and this would create significant employment and economic opportunities for those people. Also, and quite ironically, legal marijuana’s primary nemesis, its status as a Schedule 1 drug per federal law, works against large companies investing heavily in Oregon’s program. Federally speaking, not only would those large, out-of-state corporations be breaking the law, but they would also be crossing state lines to do so. There’s a good chance that’s more stress than your typical VP of marketing and development can tolerate. Also, it’s possible that there are quite a few Oregonians with the proverbial rich uncle who lives out of state, so the no-residency requirement would prove beneficial should they decide to engage the industry.

Anthony Johnson celebrates the passing of Measure 91 on November 4th 2014. Photo courtesy of Sam Chapman.
Anthony Johnson celebrates the passing of Measure 91 on November 4th 2014. Photo courtesy of Sam Chapman.

Go with a pro

Consider hiring a cannabis-centric attorney such as Oregon’s Paul Loney or Canna Law Group, or a marijuana enterprise consultant (usually cheaper than attorneys), or both, to guide you through the startup and license application phase.

Know the numbers

Starting up a legal marijuana business ain’t cheap. Many of the mandatory regulatory aspects of a legal cannabis business, such as fencing, surveillance and security, insurance, zoning, etc., can be big-ticket items. In Washington, even a small, Tier 1 Producer operation is easily a $100,000 investment. And if you’re a wannabe retailer, don’t forget inventory cash! Right now in Washington state, there’s a retailer bank-wiring $230,000 to a producer/processor for what is likely a 10-day supply of marijuana. Make sure you’re clear on the cash requirements for implementing your business and make sure you can access that cash. Also, be prepared to show the OLCC precisely where that cash is, and where it came from.

Hang tough!

Enduring bureaucratic scrutiny can be exceedingly frustrating. The hoops through which Measure 91 stakeholders will have to jump are significant, and you may reach a point where you consider just bagging it. Don’t. I know people who’ve quit the I-502 process, and not a single one of them is content with that decision. Don’t forget that you’re fighting for an opportunity that represents potentially generations of prosperity for you and your family.

Ford T. Pearson is Publisher/Editor of Flip-Side Magazine, a sponsoring level member of NCIA since 2014. Ford has significant experience within the legal marijuana industry, including working as a publicist for cannabis-related businesses, and as a consultant helping applicants of Washington’s Initiative 502 legal adult-use marijuana program, Oregon’s HB3460 program, and Oregon’s Measure 91 program. Flip-Side Magazine provides news and resources for the northwest cannabis industry, and is the only marijuana trade publication serving Oregon and Washington cannabis professionals.

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