November has been a busy month in cannabis policy: Congress is on the brink of ending the longest-ever government shutdown (with implications for the hemp industry and veterans access), while Virginia and New Jersey just held statewide elections that will undoubtedly change the cannabis landscape in those states (well, Commonwealth in Virginia’s case!). Let’s take a look at some of the latest updates and what it means for the cannabis industry:
Congress
There have been two big developments from Washington, D.C. related to hemp and veterans access to medical cannabis that have taken place in the last week:
Hemp ban on the horizon
You’ve probably heard by now that this most recent government shutdown has been the longest in American history. But did you know that when the Senate voted to reopen it earlier this week that Sen. Mitch McConnell (R-KY) successfully included language in the bill that would ban all hemp-derived products with more than 0.4% THC?
Well, that’s exactly what happened just days ago. In response to the inclusion of this language, Kentucky’s other Senator, Rand Paul (R) filed an amendment that would have struck that THC ban language from the minibus. What followed were many news stories, a flurry of lobbying, and ultimately, a vote on the Senate floor; on Monday evening, the Senate voted not to advance Sen. Paul’s amendment, leaving Sen. McConnell’s language (known colloquially as the “hemp ban”) in place. The final vote was 76-24.
While the House has not yet voted on this particular version of the bill, almost identical THC-banning language was passed by the chamber previously. The passage of Sen. McConnell’s language in the upper chamber all but guarantees that this language will become the law of the land- but it will be one year before the ban goes into effect.
Veterans left behind
In addition to including the aforementioned hemp ban, the Senate’s spending package also omitted a key provision related to veterans access. For context, the House had also previously passed language pertaining to VA doctors recommending marijuana to veterans, but according to Marijuana Moment, “the negotiated bill contains no language on the issue at all.” That’s surely an interesting way to honor the men and women who have served our country right at Veteran’s Day…
Virginia: a new Governor sets the stage for progress
Virginia has lived in a strange limbo since 2021: cannabis is legal- but there’s no regulated retail market. That stalemate largely stemmed from repeated vetoes from outgoing Gov. Glenn Youngkin (R), despite repeated attempts for reform made by the legislature. Now that voters have elected former-Congresswoman Abigail Spanberger (D), who campaigned on establishing a regulated adult-use market and Democrats have expanded their majority to a super majority in the House of Delegates, the prospects for a retail framework in 2026 are incredibly promising. Note that during her time in Congress, Spanberger voted for regulated adult-use cannabis via the MORE Act and was a cosponsor of the SAFE Banking Act.
Expect legislators in the Old Dominion to begin refining and reintroducing bills that lay out licensing structures, prioritize equity reinvestment, and potentially look to a phased launch for Virginia’s market. Operators should consider preparing for an accelerated early-session push focused on clear timelines for the Cannabis Control Authority, strong product safety standards, and funding for community reinvestment.
New Jersey: homegrow on the horizon?
The Garden State also chose a new governor earlier this month: former-Congresswoman Mikie Sherrill (D). Sherrill has publicly backed legalizing home cultivation– a provision which the state has lacked. If the Sherrill administration signals support, bills like S1985 (personal grow allowances for medical and adult use) could finally move. Like her former roommate in DC, Alison Spanberger, Mikie Sherrill also cosponsored the SAFE Banking Act and voted in favor of the MORE Act.
New Jersey already has a functioning adult-use market under the Cannabis Regulatory Commission (CRC), but allowing for home grow would be a targeted, consumer-friendly reform that eases price pressure, helps patients, and aligns New Jersey with other (and many neighboring) states.
These election outcomes and federal policy shifts underscore a critical inflection point for the cannabis and hemp industries. We cannot allow these trends to point to a future where cannabis policy becomes more polarized- we must continue to amplify our voices at the ballot box and through groups like NCIA and continue to unite around common-sense policies. Make sure your business has a seat at the table in 2026 and join the movement today!
Cannabis Reform in Washington: What’s Moving, What’s Stalled, and Why Your Voice Matters
While cannabis reform has always moved at a glacial pace in Washington, D.C., 2025 seems like an extreme example. To date, Congress has introduced almost no standalone legislation related to the issue and efforts to reclassify marijuana have stalled; but the Supreme Court of the United States (SCOTUS) has seemed more willing to examine the topic.
Let me be clear, though: your voice matters and you can make it heard easily by using NCIA’s action alerts to contact your member of Congress about medical marijuana protections, 280E, and/or hemp.
All of that said, with legislators back home in their home states/districts, I thought it would be a perfect time to recap what has (and hasn’t) happened so far in reform this year by looking at each branch of government:
Administrative
At the beginning of the year, Donald Trump was sworn in for his second term as President. President Trump and his administration were, for the most part, inactive on cannabis policy reform during his first term- with the notable exception of his then-Attorney General, Jeff Sessions, rescinding the Cole Memo in early 2018. That said, the President and his current administration seem to be considering making moves on this issue.
You may recall that the Biden Administration previously initiated the rescheduling process, prompting a notice of proposed rulemaking (NPRM). (You can read more about NCIA’s role in that process here.)
Fast forward to this year: in January some of the pro-rescheduling plaintiffs (not including NCIA) filed an interlocutory appeal and accused the DEA of colluding with prohibitionists (and that their approach was unlawful). The filing of this interlocutory appeal caused an indefinite pause on the proceedings and, for all intents and purposes, ended these historic hearings.
Now, it seems like there may be some new developments. Last week, reports from CNN and the
Wall Street Journal stated that officials are reexamining cannabis policy and was followed by the President himself saying that his administration is “looking at” a proposal to reschedule marijuana and will “make a determination over the next few weeks.”
This comes after the Senate recently confirmed Terry Cole as the new Administrator of the DEA. NCIA sent a letter to Administrator Cole following his ascension to the office and looks forward to participating in and guiding any efforts to reclassify marijuana under federal law.
Legislative
In the almost 11 years that I’ve been at NCIA, there’s typically been no shortage of cannabis related bills introduced in Congress- until now.
The 119th Congress has been disappointingly inactive on cannabis policy this year. To date, only one substantive pro-cannabis bill (STATES 2.0) has been introduced on the topic.
Unfortunately, efforts to undermine the cannabis industry have also been introduced, such as the H.R. 1447/S. 471, the “No Deductions for Marijuana Businesses Act”, which seeks to make the unfair 280E tax rule permanent for state-legal cannabis businesses – regardless of how cannabis is scheduled in the Controlled Substances Act. You can take action against this punitive bill by sending a letter to your members of Congress using this tool.
All of that said, Congress has been working on the federal budget (also known as appropriations bills). Both the House and Senate versions of the FY 2026 Commerce–Justice–Science (CJS) appropriations bills include the long-standing rider prohibiting the Department of Justice (DOJ) from spending funds to interfere with state medical cannabis programs, however, the House’s version would place a critical caveat on these protections and proposes that the Justice Department still be able to enforce a section of U.S. code that calls for increased penalties for distributing cannabis within 1,000 feet of an elementary school, vocational school, college, playground or public housing unit. If passed into law, this language puts hundreds of facilities and patients at risk. Again, please consider reaching out to your Representative via NCIA’s action alert tool on this critical topic.
Judiciary
The SCOTUS hasn’t issued any major merits rulings directly on marijuana this year, but several cannabis-related matters have either been brought before the Court or had petitions filed. In April, “SCOTUS ruled in favor of a trucker who sued a cannabis company after he was fired over a positive THC test that he says was caused by consuming a hemp-derived CBD product”. According to Marijuana Moment, the justices’ decision means he can seek triple damages from the company that made the product under a federal anti-racketeering law (RICO).
The highest court in the land (no pun intended!) may also review another cannabis related case soon. Just days ago, the Trump administration asked SCOTUS to take up a case on the federal government’s ban on users of marijuana and other illegal drugs from owning firearms and uphold the prohibition, basically asking SCOTUS to deny marijuana users their 2nd Amendment rights.
There’s no doubt: federal reform takes time, effort, and engagement. Policy change cannot and will not happen without your help, so again, please use NCIA’s action alerts to contact your member of Congress about medical marijuana protections, 280E, and/or hemp.
Inside NCIA’s 13th Lobby Days: Policy Wins, Powerful Voices, and National Impact
Last month, the National Cannabis Industry Association (NCIA) hosted its 13th Annual Cannabis Industry Lobby Days and inaugural National Stakeholder Summit in Washington, D.C.
Over the course of a day and a half, NCIA members canvassed Capitol Hill and completed over 100 meetings on Capitol Hill educating members, staff, and committees on the issues that impact cannabis businesses every day.
Let’s take a look back at some of the highlights of this impactful, vital, and incredibly fun event:
National Stakeholder Summit: On May 13, the event commenced with the first-ever National Stakeholder Summit, open to both NCIA members and non-members. This summit provided a platform to delve into pressing policy issues such as cannabis rescheduling, taxation challenges under Section 280E, and the dynamics between state and federal regulations. Attendees gained actionable insights from industry experts and learned how to communicate with policymakers post-Lobby Days for effective engagement and desired outcomes.
Lobby Days: Over the next two days, NCIA members participated in organized meetings with members of Congress and their staff. The focus was on advocating for critical reforms, including the soon-to-be-reintroduced Secure and Fair Enforcement (SAFE) Banking Act, the punitive No Deductions for Marijuana Businesses Act, the recently re-introduced STATES 2.0 Act, and the need for federal cannabis reform. Attendees shared personal stories and insights to highlight the challenges faced by cannabis businesses, aiming to educate and influence lawmakers.
In addition to educating numerous offices about the cannabis industry, attendees also met with staff from various committees, including the Small Business, Agriculture, Finance, Ways and Means, Banking, Health, Education, Labor and Pension (HELP), Financial Services, and Judiciary inform them of the challenges cannabis businesses face daily.
And when NCIA members turn out, we see the results. Since the event concluded, we’ve seen increased cosponsorship from multiple offices that our members met with on a number of NCIA’s priority bills.
Closing Reception: After a full day of advocacy attendees networked, debriefed, and fêted at our closing reception, where we awarded longtime cannabis reform proponent, Kris Krane, with our second annual “Steve Fox Excellence in Advocacy” award.
Additionally, we were joined by the bipartisan co-chairs of the Congressional Cannabis Caucus: Congresswoman Dina Titus (D-NV) and Congressman Dave Joyce (R-OH). These two advocates have been unrelenting and vocal in their support of the cannabis industry and in reforming our outdated cannabis laws.
As such, NCIA was honored to present both of them with our much deserved “Legislator Lifetime Achievement” award.
NCIA’s 13th Annual Cannabis Industry Lobby Days and National Stakeholder Summit underscored the organization’s dedication to advocating for fair and equitable cannabis policies at the federal level. By facilitating direct engagement between industry stakeholders and policymakers, NCIA continues to play a crucial role in shaping the future of the cannabis industry. But we couldn’t do it without our sponsors and our members.
Make Your Voice Heard: Why You Can’t Afford to Miss NCIA’s Annual Lobby Days & National Stakeholder Summit
It’s no secret that the cannabis industry is in dire need of reform. Businesses are struggling, consolidation is rampant, and communities continue to bear the costs of prohibition. At the same time, partisan gridlock has made progress at the federal level more challenging than ever. The cannabis industry—its business owners, employees, and advocates—feels the weight of uncertainty, cynicism, and frustration.
But one thing is certain: change doesn’t happen without action. That’s why there’s no better investment in the future of your business and the industry than attending NCIA’s 13th Annual Cannabis Industry Lobby Days and the inaugural National Stakeholder Summit in Washington, D.C., from May 13-15, 2025.
A New Era of Advocacy Begins with the National Stakeholder Summit
For the first time, we’re launching the National Stakeholder Summit, a deep dive into the policy challenges and regulatory shifts shaping the cannabis industry. This is where business meets policy, and where industry leaders set the stage for the advocacy that follows.
NCIA members enjoy complimentary access to the Summit, while non-members can attend for just $100. If you’re not yet a member, there’s never been a better time to join NCIA and unlock full access to this high-impact event.
Lobby Days: The Most Important Advocacy Event of the Year
After the Summit, NCIA’s 13th Annual Cannabis Industry Lobby Days provide a unique opportunity for cannabis professionals, business owners, and advocates to directly influence federal policy. As the industry continues to expand, engaging with lawmakers is essential to advancing sensible regulations, protecting businesses, and pushing for federal reform.
At Lobby Days, attendees will educate members of Congress and their staff on key industry priorities, including:
✅ Banking access ✅ 280E tax reform ✅ Federal legalization
✅ Criminal justice reform ✅ Sensible regulations for hemp products
Even more importantly, this is your chance to share your personal story. Lawmakers need to hear directly from industry professionals about the real-world impact of federal policies. Personal engagement can significantly influence legislative decisions and demonstrate the economic power and legitimacy of the cannabis industry.
Why Showing Up Matters
Beyond advocacy, Lobby Days offers unmatched networking opportunities, allowing you to connect with other business leaders, policymakers, and industry stakeholders. These relationships are critical for staying informed, forming strategic partnerships, and ensuring long-term success in the cannabis space.
This isn’t just about being seen—it’s about being heard. And the best way to ensure your voice carries weight is by standing with the largest and most influential cannabis trade association in the country.
Reserve Your Seat at the Table
NCIA’s Lobby Days is an exclusive, members-only event. Not yet a member? Join today to secure your spot and be part of the movement shaping the future of cannabis.
Already a member? Register now to stay up to date on our agenda, training sessions, and more.
Want to Maximize Your Impact?
Consider sponsoring Lobby Days to amplify your company’s voice and position yourself as a leader in cannabis advocacy. Sponsorship opportunities help you stand out before, during, and after the event.
Be in the room. Be part of the movement. Join us in Washington, D.C.
I look forward to seeing you there—just don’t forget to pack comfortable shoes!
Michelle Rutter Friberg Director of Government Relations, NCIA
The Power of the Ballot: Cannabis Reform Takes Center Stage in 2024
Ballot initiatives are as OG as it gets: nearly thirty years ago in 1996, California became the first state to legalize medical marijuana via Proposition 215, also known as the Compassionate Use Act. This provision exempted certain patients and their primary caregivers from criminal liability under state law for the possession and cultivation of cannabis for medicinal use- and as they say, the rest is history!
But with election day just around the corner, it’s important that we remember our roots (pun intended) and remind our friends in Arkansas, Florida, Nebraska, North Dakota, South Dakota, and Oregon that cannabis is on the ballot.
Arkansas
If you live in Arkansas you may see marijuana on your ballot, but unfortunately your vote on the measure simply won’t be counted!
The Arkansas Medical Marijuana Expansion Initiative will appear on the ballot in Arkansas as an initiated constitutional amendment, however, in late October, Secretary of State John Thurston announced that votes on the measure would not be counted. Thurston determined that proponents submitted a total of 88,040 signatures, falling short of the 90,704 signatures required. The measure was provisionally placed on the ballot because signature verification was ongoing amid the deadline for the final statewide ballot to be printed but the Arkansas Supreme Court later ruled that although the sponsors submitted enough valid signatures to qualify for the ballot, the amendment’s ballot language was misleading and that votes on the measure would not be counted.
Florida
Voters in the Sunshine State will have the opportunity to cast their vote on legalizing adult use cannabis, but with a catch: in order to pass, proposed amendments need to garner at least 60% of the vote in order to be added to the Florida Constitution.
Amendment 3 has gotten substantial media coverage: Florida Governor Ron DeSantis has been an outspoken opponent of the measure, while former President Trump has recently stated that “As a Floridian, I will be voting YES on Amendment 3 this November”.
The outcome remains uncertain, though: A recent Emerson College Polling/The Hill survey found that support for Amendment 3 is at 60 percent, while 34 percent are opposed and 6 percent remain undecided.
Nebraska
Voters in Nebraska will see two medical marijuana measures on their ballots in November, but getting there wasn’t easy: there’s been a local lawsuit and a statewide investigation into whether enough of the signatures were valid.
Both initiatives would define cannabis as all parts of the plant of the genus cannabis, including marijuana, hashish and concentrated cannabis, but not hemp as defined in state law. One effort, the Nebraska Medical Cannabis Regulation Act, would legalize possessing, manufacturing, distributing, delivering and dispensing cannabis for medical purposes and would create the Nebraska Medical Cannabis Commission to oversee the law.
The other measure, the Nebraska Medical Cannabis Patient Protection Act, would set an allowable amount of medical cannabis at five ounces; would exempt patients and caregivers from using or assisting someone else in using the cannabis; and would require a written recommendation from a health care practitioner, as well as a legal guardian or parent in the case of minors, prior to prescription.
Advocates in Nebraska tried (and failed) to get medical marijuana on the ballot in 2022 and 2023- hopefully third time’s the charm!
North Dakota
Voters in North Dakota will see Initiated Measure 5, aka the Legalization and Regulation of Cannabis, on their ballots. North Dakota voters approved medical marijuana in 2016 but rejected recreational initiatives in 2018 and 2022.
The 20-page statutory measure would legalize recreational marijuana for people 21 and older to use at their homes and, if permitted, on others’ private property. The measure also outlines numerous production and processing regulations, prohibited uses — such as in public or in vehicles — and would allow for home grow.
According to a September survey, roughly 45% of registered voters in North Dakota support Initiated Measure 5, while 40% oppose and 15% are undecided.
South Dakota
In South Dakota, voters will see Initiated Measure 29 on the ballot. Measure 29 would legalize cannabis use, possession, distribution and home grows for individuals 21 years and older and allow for limited home grow. It would restrict where individuals could possess or consume cannabis and would also allow employers to restrict an employee’s use of cannabis. To satisfy the state’s single-subject rule, the measure does not establish a commercial marketplace for licensed cultivation or dispensary sales.
This is South Dakota’s third adult-use cannabis measure to appear on the statewide ballot.
Oregon
Measure 119, known as the Unionization of Cannabis Workers Initiative, is on the ballot in Oregon as an initiated state statute. Measure 119 would require cannabis retailers and processors to submit to the Oregon Liquor and Cannabis Commission with its application or renewal of license a signed labor peace agreement between the cannabis retailer or processor and a labor organization actively engaged in or attempting to represent the retailer’s or processor’s employees.
Currently, California, Connecticut, New Jersey, New York, and Virginia have similar requirements for licensed cannabis businesses.
All of these measures will shape the narrative around cannabis reform, so whether you live in a state with a marijuana-related initiative or not- make sure you have a plan to get to the ballot box and let your voice be heard!
Update from D.C.: The Latest on Marijuana Rescheduling and the Farm Bill
There were two major cannabis policy developments from Washington, D.C. last week: language of the proposed rule for rescheduling became available (accompanied by a video from the President reaffirming his commitment to reform) and the long anticipated text of the farm bill was released.
The text of the proposed rule confirmed that the Attorney General is seeking to move marijuana from Schedule I of the Controlled Substances Act (CSA) to Schedule III. Doing so would provide tax parity for the cannabis industry by ensuring legal businesses would no longer be subject to an arcane provision of the U.S. tax code — Section 280E — that prohibits deductions associated with “drug trafficking.”
The Department of Justice asked for public comment on various topics, including:
Facts and expert opinion on different forms, formulations, and delivery methods
Dosage and concentration information
Data on marijuana constituents, routes of administration, and impact of Delta-9 THC potency
Information regarding the scope, duration, and significance of marijuana abuse
Comments on the practical consequences of rescheduling marijuana to Schedule III under the relevant statutory frameworks
Comments on the economic impact of the proposed rule
Information on how rescheduling may impact “small entities”
The public comment period is officially open and will conclude on July 22. NCIA will be submitting comments during the rulemaking period on behalf of the hundreds of small businesses we represent in the legal cannabis industry.
In addition to this exciting announcement, the House Agriculture Committee also released the text of the overdue 2023 farm bill (the bill’s original deadline was September 30, 2023, but was extended for one year).
Included in the bill is language regarding hemp and hemp production. The 2018 farm bill legalized hemp by authorizing the production of hemp and removing hemp and hemp seeds from the CSA. Since then, the proliferation of hemp derived products containing various cannabinoids (CBD, Delta-8, THC-A, etc) has become commonplace. The increase of intoxicating products derived from hemp has concerned many — including those in Congress.
During the Committee markup, an amendment was offered by Rep. Mary Miller (R-IL) that would federally ban all ingestible hemp products with any level of THC. The amendment passed via voice vote.
This is an area we at NCIA are keeping a close watch. As the association that represents the entire cannabinoid industry, we are urging Congress to eschew the failed policies of prohibition and to instead move to regulate hemp and marijuana-derived products equally. Make sure you check out our brand new position paper “Navigating the Future of Cannabinoid Regulation: Balancing Safety, Innovation, and Consumer Access”, which delves into the complexities of cannabinoid production, differentiating between plant-extracted and synthesized cannabinoids. It also addresses the challenges posed by the current regulatory landscape and advocates for a common-sense federal framework that emphasizes safety, consistency, and quality across all cannabis-derived products.
Empower Your Voice: Unveiling NCIA’s Updated Congressional Scorecard
In just over 200 days, people across the country will head to the ballot box to make their voices heard. As you take the time to consider the issues that matter the most to you and which candidates best align with those values, NCIA is here to help with our recently updated congressional scorecard.
Our scorecard shows how members of Congress have voted and who has supported various cannabis bills over both the previous (117th) and current (118th) sessions.
With more than 500 members, it can be hard to keep track of votes and congressional support on the issues that matter the most to you and your business. During the 117th congress, the House of Representatives voted on both the Secure and Fair Enforcement (SAFE) Banking Act (H.R. 1996) and the Marijuana Opportunity, Reinvestment, and Expungement (MORE) Act (H.R. 3617). There has not yet been any floor votes on these bills (or other) priority cannabis legislation over the course of the current (118th) congress. That being said, our scorecard does show how members of the Senate Banking Committee voted on the SAFER (Secure and Fair Enforcement Regulation) Banking Act during a September 2023 markup of the bill. The scorecard also shows which members of the Senate have signed on as cosponsors of the SAFER Banking Act (keep in mind there are about a handful of members who signed onto the SAFE Banking Act, but have yet to support this newer iteration).
Though it may seem silly, I’m envious of your ability to look at these voting records. As a resident of Washington, D.C., I (along with hundreds of thousands of my neighbors) am subject to taxation without representation and have no voting member of Congress. D.C. has also been unable to fully implement its voter approved 2014 adult-use initiative due to congressional interference, but that’s a story for another blog!
I hope this scorecard helps you continue to hold your elected officials accountable- both at the ballot box and through civic engagement. I also hope this tool will empower you to get involved with government- at any level- whether that be by setting a meeting with one of your representatives’ district offices, attending a town hall meeting, or volunteering on a campaign. Don’t forget to make sure you’re registered to vote, and if you’re unsure about who your elected officials in Washington are, you can click here. Lastly, one of the best (in my humble opinion) ways to make an impact on elected officials is by attending our annual cannabis industry lobby days. Make sure you mark your calendars for May 14-16 and register today to get the best rate!
Navigating the Cannabis Landscape: Federal Cannabis Reform Outlook for 2024
A month into 2024, Congress is (still) grappling with a number of urgent, must-pass bills related to issues like border security, aid for Ukraine and Israel, and the federal budget. At a time when the government seems more dysfunctional than ever, it’s important to remember that this chaos results in cannabis issues (and unfortunately, many others) having difficulty in gaining traction in Congress. As a result, cannabis legislation and priorities have been slow moving so far this year- but I feel confident that there’s light at the end of the tunnel!
SAFE Banking
To recap: the ever-elusive SAFE Banking Act was reintroduced in 2023 by Senators Jeff Merkley (D-OR) and Steve Daines (R-MT) alongside Representatives Earl Blumenauer (D-OR) and Dave Joyce (R-OH). Soon after, the Senate Committee on Banking, Housing, and Urban Affairs held a hearing titled “Examining Cannabis Banking Challenges of Small Businesses and Workers” discussing both the bill and the topic of cannabis banking broadly.
As the momentum for SAFE Banking increased, so did some Senators’ concerns– primarily surrounding a provision that would bar federal banking regulators from taking discriminatory enforcement action against any industry.
As a result, an updated version of the bill called the SAFER (Secure and Fair Enforcement Regulation) Banking Act was introduced, marked up by the Committee, and passed out of Committee by a vote of 16-14 in late September 2023.
That brings us to 2024. Although SAFER has not been scheduled for a floor vote yet, NCIA is cautiously optimistic on its chances this year — whether that be as a standalone bill or attached to another larger financial services related package. That being said, the bill will undoubtedly face an uphill battle no matter how it arrives at the GOP-controlled House of Representatives.
Other Congressional News
Outside of SAFE(R) Banking, there has been some additional congressional cannabis news in 2024 including a Senate letter urging descheduling, a bicameral letter regarding Chinese-related illicit grow operations, and a new Congressional Research Service (CRS) report on the impact of moving cannabis from Schedule I to III in the federal Controlled Substances Act.
In late January, Senators Elizabeth Warren (D-MA) and John Fetterman (D-PA), led nine of their Democratic colleagues (including Senate Majority Leader Chuck Schumer [D-NY]), in sending a letter to Attorney General Merrick Garland and Drug Enforcement (DEA) Administrator Anne Milgram. The letter urged Milgram and Garland to remove marijuana from Schedule I of the Controlled Substances Act entirely, commonly known as descheduling.
Then, just days ago, Senators Joni Ernst (R-IA) and Angus King (I-ME) alongside Congressmen Pete Sessions (R-TX), Jared Golden (D-ME), and David Valadao (R-CA) led 48 of their colleagues in calling on Attorney General Merrick Garland to prevent any national security risk and end any illicit human trafficking connected to Chinese-linked marijuana farms in the United States.
In the bipartisan, bicameral letter, the lawmakers pointed out that Chinese nationals (some with potential ties to the Chinese Communist Party), are operating marijuana farms across the country and even potentially engaging in human and drug trafficking in conjunction with these operations. The lawmakers asked the Department of Justice for a briefing on the topic by the end of the month and posed several specific questions for the agency.
In mid-January, the Congressional Research Service (CRS) released a new report titled “Legal Consequences of Rescheduling Marijuana” that primarily focused on “Legal Consequences If Marijuana Moved to Schedule III” and considerations for Congress. CRS works for members of Congress and their committees and staff on a confidential, nonpartisan basis and is highly regarded here in Washington, D.C.
Biden Administration
In 2022, the Biden Administration announced that it would ask the Secretary of Health and Human Services (HHS) and the Attorney General to initiate the administrative process to review how marijuana is scheduled under federal law.
As a result, in August 2023, news broke that the Department of Health and Human Services (HHS) recommended to the Drug Enforcement Administration (DEA) that cannabis be rescheduled and placed in Schedule III, meaning that it has moderate to low abuse potential, a currently accepted medical use, and a low potential for psychological dependence. Since then, the DEA has been conducting their review of where marijuana should be placed in the Controlled Substances Act, which will then be followed by a public comment period.
To be clear, NCIA supports ending the criminalization of our industry by removing cannabis (including THC) from the federal Controlled Substances Act altogether so that our businesses are treated like all other lawful American businesses. That being said, it’s likely that the DEA will follow the HHS recommendations and choose to place marijuana in Schedule III.
While NCIA continues to draft our response to the inevitable announcement — whatever it may be — we also want to hear from our members about their views on this critical issue. If you are a member of NCIA, check your inbox for a link to our online survey in order to make your voice heard. If your business isn’t yet a member but you want to get off the sidelines of the cannabis reform movement, join today! NCIA is proudly the only organization focused on representing independent businesses in our nation’s capital and the work we do moving policy reforms forward is only possible because of the hundreds of businesses that make up our membership.
It goes without saying that 2024 is shaping up to be a big one for federal cannabis policy reform. Stay connected and engaged by attending one of our upcoming Stakeholder Summits where you can engage and learn from state officials, federal policymakers, and even me!
If you really want to play a bigger role in advancing cannabis policy reform, we hope you’ll also join us in Washington, D.C. for our 12th Annual Cannabis Industry Lobby Days this May. See you there!
SAFER Banking Act Clears Senate Committee
NCIA (and myself personally!) have been talking about the SAFE Banking Act for years.
After the Senate Banking Committee’s hearing on the topic of financial services and the cannabis industry in May, it became clear that in order for the bill to continue on in the legislative process and receive a markup that changes to a few sections needed to be made.
As a result, a slightly new (and improved?) version of the bill was introduced as the SAFER (S. 2860: Secure and Fair Enforcement Regulation) Banking Act last month. Most of the changes in the bill pertained to Section 10, which bars federal banking regulators from taking discriminatory enforcement action against any industry (not just cannabis).
Once SAFER was formally introduced, the Senate Banking Committee announced that a markup was scheduled for September 27. It’s important to note that this was the firsttime ever that a Senate committee held a markup on a pro-cannabis bill.
During the markup session, multiple amendments were offered. The first, offered by Chairman Brown (D-OH) was what’s known as a “manager’s amendment” and primarily made technical changes to the bill. That amendment also made changes so that the Treasury secretary would be given one year (instead of 180 days) to issue updated guidance to financial institutions that work with cannabis businesses that was first released during the Obama administration in 2014. It also stipulated that federal home loan banks are now included under a list of financial institutions that would be protected from being penalized by federal regulators simply for working with state-legal cannabis businesses.
Another amendment, from Sen. Warnock (D-GA) would have created a 5-year sunset for the legislation unless a report from the Treasury Department certified that it had decreased the racial wealth gap and ameliorated other negative economic impacts of the war on drugs. This amendment ultimately failed.
Additionally, amendments from Senators Hagerty (R-TN), Rounds (R-SD), Crapo (R-ID) were also offered but were ruled out of order, withdrawn, and failed, respectively.
Republican members of the committee voiced concern that the bill allowed for financial institutes to utilize reputational risk to de-bank certain accounts they do not align with ideologically and argued that no financial regulator should be able to pressure any financial entity to refuse to provide service to a lawful entity.
Some Democrat members, particularly Sen. Warnock (D-GA), voiced concern that the bill does not adequately address the disproportionate impacts of marijuana criminalization and its exacerbation of the racial wealth gap in the United States. Other members of the committee encouraged amendments and future legislation intended to improve the quality of life for those most negatively impacted by marijuana criminalization in addition to creating safer conditions for banks and other financial institutions. Sen. Warnock was the lone Democrat who voted “No” on the bill during the markup.
Ultimately, the bill passed out of the committee markup by a bipartisan vote of 14-9. This sets the stage for a full Senate floor vote, which Majority Leader Schumer (D-NY) has committed to scheduling as soon as possible, with the possibility of adding the HOPE and GRAM Acts to the bill before passage.
I don’t know about you, but I’m not done making history yet! Stay tuned for the latest on the SAFER Banking Act and how you can help get the bill passed!
A Full Plate For Congress – Status Update for SAFE Banking, MORE Act, CAOA, and Veterans
Photo By CannabisCamera.com
by Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations
I’m not sure if you’ve seen the news, but Congress has had a lot on its plate recently: negotiations over infrastructure, the budget, the debt ceiling, reconciliation, not to mention the ongoing COVID-19 pandemic! And while the path to cannabis reform has been slightly overshadowed by some of these larger issues, for the time being, the NCIA team is continuing to work tirelessly and incessantly on your behalf to enact legislation that would help you and your business. Let’s take a look at some of the more recent developments from Washington, D.C:
SAFE Banking:
Last month, the House passed the language of the SAFE Banking Act for the fifth time via the must-pass National Defense Authorization Act (NDAA). NCIA and our allies on Capitol Hill are always trying to be creative and come up with new, different avenues to advance our policy priorities, and the NDAA was a great opportunity that we were able to take advantage of! NCIA will continue to work with members of the Senate Armed Services Committeeand other stakeholders to push for the SAFE Banking Act to be included in the final bill language. Stay tuned as the NDAA process unfolds throughout the remainder of autumn.
The MORE Act:
Also last month, the House Judiciary Committee passed the MORE Act out of committee by a vote of 26-15 but the bill still has a long journey ahead of it. It’s unlikely that committees like Ways and Means and Energy and Commerce will waive their jurisdiction again, and it’s critical to remember that the chamber actually became slightly more conservative following the 2020 election. Committee schedules are jam-packed right now, however, we continue to meet with those with jurisdiction over the MORE Act and encourage them to take up this important piece of legislation.
CAOA:
The discussion draft of the Cannabis Administration and Opportunity Act (CAOA) was unveiled back in July by Senate Majority Leader Schumer (D-NY), Finance Committee Chairman Ron Wyden (D-OR) and Sen. Cory Booker (D-NJ). In the following month, NCIA worked diligently with our Evergreen Roundtable, board, committees, social equity scholarship members, and others to provide detailed feedback on various topics as requested by the Senators. NCIA continues to be a resource for the Sponsoring Offices and committees of jurisdiction, however, official bill introduction likely won’t happen until early-2022.
Veterans:
Last week, the House Veterans Affairs Committee: Subcommittee on Health held a hearing on a number of bills; among them H.R. 2916, the VA Cannabis Research Act of 2021. While this bill is not a piece of NCIA priority legislation, we applaud the committee, longtime sponsor and ally Congressman Correa (D-CA), and their teams for discussing this important topic. Of note is testimony from Dr. David Carroll, Executive Director at the Office of Mental Health and Suicide Prevention at the Department of Veterans Affairs (VA). His testimony is only about a page long, but the gist is that the VA does not support this bill. I’d also like to highlight the statement Rep. Correa submitted for the record, which you can find here.
Even though Capitol Hill’s bandwidth is stretched, NCIA will continue our work in Washington, D.C. to get these (and other) cannabis provisions enacted into law. Have questions or thoughts? Find me over on NCIA Connect!
Across the Country – State Cannabis News and Movement
by Madeline Grant, NCIA’s Government Relations Manager
As the deadline to submit feedback for the Cannabis Administration and Opportunity Act approached last week, our Government Relations team worked tirelessly to submit a detailed analysis and recommended improvements on behalf of the legal cannabis industry. The full comments and an executive summary can be downloadedhere.The Cannabis Administration and Opportunity Act (CAOA), submitted in July by Majority Leader Charles Schumer (D-NY) and Senators Cory Booker (D-NJ) and Ron Wyden (D-OR), would remove cannabis from the schedule of controlled substances, create a regulatory structure and federal guidelines for cannabis products and state-legal markets, and is intended to support restorative justice for the people and communities that have been disparately hurt by prohibition while ensuring fair opportunities in legal cannabis markets for small businesses and marginalized communities.
The introduction of the comprehensive draft language was a pivotal moment for the United States Senate and NCIA will continue to do whatever we can to ensure value-driven policies for the cannabis industry. Meanwhile, we continue to see movement at the state level as support for cannabis legalization efforts continues to grow. Here are some important updates happening at the state level.
California
California officials announced that they are soliciting proposals for a program aimed at helping small marijuana cultivators with environmental clean-up and restoration efforts. The California Department of Fish and Wildlife’s (CDFW) Cannabis Restoration Grant program will release applications this fall and remain open through spring 2023. The $6 million in potential funding, which comes from cannabis tax revenue, must go to government agencies, California nonprofits, or Native American tribes who would then work with cultivators on environmental efforts.
New York
The newly inaugurated governor of New York says she wants to “jumpstart” the implementation of cannabis legalization. Governor Kathy Hochul took a major step by making two key regulatory appointments to oversee the state’s cannabis market. Soon after they were quickly confirmed by the Senate during a special session. Former New York Assemblywoman Tremaine Wright (D) will serve as chair of the Cannabis Control Board, and former Drug Policy Alliance (DPA) staffer Christopher Alexander will be the executive director of the state’s Office of Cannabis Management.
Ohio
Ohio activists can begin collecting signatures for a 2022 ballot initiative to legalize marijuana in the state. The Coalition to Regulate Marijuana Like Alcohol (CTRMLA) launched its ballot effort last month. The new initiative is a statutory proposal and if supporters collect 132,887 valid signatures from registered voters, the legislature will then have four months to adopt the measure, reject it, or adopt an amended version. In the case of lawmakers not passing the proposal, an additional 132,887 signatures will be required to place the proposal before voters on the ballot in 2022.
Missouri
Another adult-use legalization proposal has been filed. Legal Missouri 2022 submitted the latest measure to the secretary of state’s office, and it will now go through a review period before potentially being certified.
New Mexico
The Cannabis Control Division announced applications are now open for businesses interested in legal cannabis producers licensed by the state of New Mexico. After an application is submitted, regulators will have 90 days to issue a determination.
Colorado
Colorado voters will decide on an initiative in November that would raise cannabis taxes to fund programs that are meant to reduce the education gap for low-income students. The secretary of state confirmed that the campaign behind the measure collected more than the required 124,632 valid signatures to make the ballot. The measure would give low and middle-income families a $1,500 stipend to have school-aged children participate in afterschool programs, tutoring, and summer learning programs.
As states continue to legalize medical and adult-use cannabis, be sure to check out our state policy map for updates. Our Government Relations team will continue to educate congressional offices as states move forward. It’s vital to have accurate information and resources for members and Congress and staffers on Capitol Hill. With advancements at the state level, we continue to relay the importance of cannabis legalization at the federal level. Please stay tuned for more updates from our Government Relations team.
SAFE Banking Act Passes House AGAIN
by Madeline Grant, NCIA’s Government Relations Manager
The Secure and Fair Enforcement (SAFE) Act, or H.R. 1996, passed the U.S House of Representatives with a final recorded vote of 321-101. This is the first floor action on a cannabis reform bill this Congress. This is not the first time we’ve seen movement on this bipartisan piece of legislation that would protect banks that service state-legal marijuana businesses from being penalized by federal regulators. The bill was reintroduced in March by Reps. Ed Perlmutter (D-CO), Steve Stivers (R-OH), Nydia Velazquez (D-NY), and Warren Davidson (R-OH), and had 177 total cosponsors by the time of the vote. The bill was taken up under a process known as suspension of the rules, which requires a 2/3rd supermajority to pass and does not allow for amendments. This is the fourth time that the House has approved the language of the SAFE Banking Act, initially as the first standalone cannabis policy reform bill ever passed by either chamber of Congress in 2019 and two more times last year as part of pandemic relief packages that were not approved in the Senate.
What does the SAFE Banking Act do, exactly?
The SAFE Banking Act would protect financial institutions from federal prosecution for providing banking and other services to cannabis businesses that are in compliance with state law, as well as help address serious public health and safety concerns caused by operating in predominantly cash-only environments. The legislation would improve the operational viability of small businesses by helping them reduce costs associated with lack of access to banking and increasing options for traditional lending that many small businesses in other fields rely upon. It would also mandate a study on diversity in the cannabis industry.The SAFE Banking Act seeks to harmonize federal and state law by prohibiting federal banking regulators from: threatening or limited a depository institutions access to the Deposit Insurance Fund, discouraging, prohibiting, or penalizing depository institutions from dealing with the cannabis industry, taking any action against a loan made to a covered business and forcing a depository institution to halt providing any kind of banking services.
Let’s take a look at the history of SAFE Banking in Congress…
2013-2015
Legislation to provide safe harbor for financial institutions that choose to service the cannabis industry was first introduced in 2013 and was called the “Marijuana Businesses Access to Banking Act.” When the bill died in Congress, it had 32 cosponsors and no Senate companion legislation. The bill was reintroduced in 2015 with the same name and 39 cosponsors and a Senate companion with 11 cosponsors.
2017
In 2017, the bill was reintroduced and renamed the Secure and Fair Enforcement (SAFE) Banking Act. By the end of that session, the bill had 95 cosponsors and the Senate companion bill had 20 cosponsors.
2019
On March 7, SAFE Banking was introduced in the House by Rep. Ed Perlmutter (D-CO) and was referred to the Judiciary and Financial Services Committees. On March 28, 2019, the Financial Services Committee voted 45 to 15 to advance the bill to the full House. The bill had broad bipartisan support with 153 cosponsors, over a third of the entire House, at the time of the committee vote (a major jump from 2017). On April 1, Senator Jeff Merkley (D-OR) introduced a companion bill to the Senate and the bill was referred to the Senate Banking, Housing, and Urban Affairs Committee. On June 6, the House bill moved out of committee and was placed on the Union calendar for a vote. The bill then passed the House by 321-103.
2020
Congress spent 2020 legislating relief legislation for Americans as the coronavirus took a toll across our nation. SAFE Banking language was also included in two coronavirus relief packages that the House approved, but unfortunately, did not make it through the Senate.
One thing is abundantly clear, states are continuing to legalize cannabis and the federal government must mitigate the state and federal conflict that legal cannabis businesses are facing. Access to banking is not only essential for any business to function, but a necessary measure for public safety. Laws making cannabis legal for adults have been passed in 18 states as well as the District of Columbia and the territories of CNMI and Guam, and 36 states, as well as several territories, have comprehensive medical cannabis laws. As the House of Representatives, again, has passed SAFE Banking, we will turn our focus to the Senate and keep up the momentum. Make sure when you have a few minutes call your senators and urge them to support the SAFE Banking Act, S. 910. You can look up your senators’ information HERE.
Spring Update from Capitol Hill – SAFE Banking, the MORE Act, and Appropriations
Photo By CannabisCamera.com
by Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations
It’s hard to believe that somehow it’s March again, but all the while, the NCIA team in D.C. has been hard at work lobbying and advocating on behalf of you and your business. Things are really beginning to warm up and spring into action, so keep reading below for a quick update on where things are at with SAFE Banking, comprehensive reform, appropriations, and more!
SAFE Banking
Bill reintroductions in both chambers have been off to a slow start. Between a new session, most people still working remotely, a delayed organizing resolution in the Senate, and a somewhat contentious COVID relief package that’s finallypassed, members of Congress and their staff have been incrediblybusy. But, now that that’s all behind us, I’d suggest preparing for many cannabis bills to be introduced soon.
Specifically, you can expect the reintroduction of the SAFE Banking Act to happen in both the House of Representatives and the Senate within the next couple of weeks. When the bill was introduced in the House during the 116th Congress, it had over 100 cosponsors. In the Senate, it was introduced with more than 20 — that’s more than a fifth of the entire chamber! The bill later went on to be passed by the entire House of Representatives in September 2019 by a vote of 321-103.
You’ll remember that the SAFE Banking Act addresses urgent public safety concerns by allowing tightly regulated marijuana businesses the ability to access the banking system and make our communities safer. The bill also provides protections from money laundering laws for any proceeds derived from these state-legal marijuana businesses. The bill also includes the Financial Institution Customer Protection Act and protections for hemp and hemp-derived CBD-related businesses, which sometimes still struggle in accessing financial services despite the legalization of hemp in the 2018 Farm Bill.
Don’t expect any big changes, however — the bill this Congress includes minor technical changes to the safe harbor language, strengthened hemp provisions, and other technical updates.
Comprehensive Reform
While SAFE Banking’s timeline is clear, the same can’t completely be said for more comprehensive reform. When I say comprehensive reform, I’m talking specifically about bills that would remove marijuana from the Controlled Substances Act like the MORE Act and the upcoming Schumer-Booker-Wyden bill.
In the House, we are continuing to work with various committees and members to determine the best path forward for the MORE Act and what changes should be made. I wouldn’t be surprised if that bill gets reintroduced sometime this spring, but the process is truly still in flux, so I also wouldn’t be surprised if it was postponed awhile. This will be determined by the lead sponsors’ offices and also by the congressional calendar and how various bills/issues move through the legislative process.
In the Senate, we’re excited to be working with Leader Schumer (D-NY) and Sens. Booker (D-NJ) and Wyden (D-OR) on their new cannabis bill. That bill will draw heavily on provisions from the MORE Act, but will also include expanded language on taxation and smart regulations. Now that the COVID relief bill has passed into law, I think we can expect to see their bill be introduced sometime in the near future.
You’ll also remember that NCIA was one of two industry trade associations invited to the initial meeting with those Senators to discuss this new bill. We’re looking forward to their discussion draft and offering our thoughts.
Appropriations
It’s spring, which means it’s appropriations season here in D.C.! These bills are legislation that “appropriates,” or sets aside, federal funds to be divided between specific federal government departments, agencies, and programs. For a refresh on the history of appropriations, click here, or, if you’re interested in how these provisions relate to cannabis, click here.
While the appropriations amendment that protects medical cannabis businesses, patients, and programs has been in law since 2014, we’ve had difficulty expanding those provisions and passing new cannabis-related amendments due to the formerly-Republican controlled Senate. However, now that Democrats control both houses of Congress, we’re excited to go back to the drawing board and get creative with the appropriations process to help provide some certainty and relief to the cannabis industry.
We’ll be looking at amendments pertaining to adult-use cannabis programs, banking, veterans access, allowing Washington, D.C. to finally implement a functioning 21+ cannabis program — and that’s just scratching the surface!
All of this is to say: things are really springing into action in D.C.! Prepare for many cannabis bills to begin getting reintroduced, and remember that the appropriations process takes months, so stay tuned via our blog, newsletter, NCIA Connect, and the new NCIA Mobile App to remain in the loop and get involved!
Momentum Across The Nation – New Mexico, Virginia, and the District of Columbia
By Madeline Grant, NCIA’s Government Relations Manager
We may be barely three months into 2021, but we’ve seen a lot of action in state legislatures already! This week, let’s take a look at three significant state victories in their respective state legislatures: Virginia, New Mexico, and the District of Columbia.
Virginia
The Virginia legislature approved adult-use cannabis legalization this past Saturday in a historic vote. The state of Virginia specifically is a major achievement as it’s the first state in the South to embrace full cannabis legalization. The House passed the measure in a 48-43 vote, and the Senate approved it in a 20-19 vote. It is important to note that not a single Republican voted for the bill in either chamber, but regardless, it passed and this is a major victory for cannabis policy reform.
So, what’s next? Virginia is the 16th state to pass an adult-use cannabis legalization law. Along with Illinois and Vermont, Virginia is the third state to pass legalization to legalize, tax and regulate recreational cannabis through the state legislature.
The Conference Committee established a January 1, 2024 enactment date for the law — this is when regulated sales are scheduled to start. Additionally, lawmakers agreed to establish an independent agency, the Virginia Cannabis Control Authority, to oversee the regulations and govern the adult-use market in Virginia. Adults will be able to possess up to one ounce of marijuana and cultivate up to four plants per household without penalty. The remainder of the bill, which details regulatory and market structure social equity provisions, and repeals criminal penalties, is subject to a second review and vote by the assembly next year. Lawmakers were sure to address issues such as how to prevent large corporations from taking over the cannabis market, how to handle expungement of cannabis offenses, addressing social equity provisions, including prioritizing business licenses for individuals who have been disproportionately impacted by criminal enforcement, and more. This is a big move for Virginia and we are excited to keep a close eye.
New Mexico
Last Friday, Members of the New Mexico House of Representatives approved House Bill 12, to legalize and regulate the use, possession, cultivation, and retail sale of cannabis for adults. House Bill 12 will move to the Senate for further consideration. If passed, the current measure, approved by the House by a 39 to 31 vote, would allow adults to purchase at least two ounces of marijuana and cultivate up to six plants for personal use. Additionally, those convicted of an offense involving up to two ounces of marijuana possession would be eligible for automatic expungement, and those currently incarcerated for these offenses would be eligible for dismissal. House Bill 12 is one of the five competing adult-use legalization measures and specifically addresses social equity and community reinvestment provisions.
So, what’s next? We’ve seen a history of opposing chambers in New Mexico through cannabis legalization efforts in 2019 and 2020. The following day after the vote in the House, the Senate Tax, business Transportation Committee considered three additional measures to legalize and regulate cannabis retail sales. The lawmakers discussed the differences and similarities between the competing cannabis measures and noted the need to reach an agreement on differences before the end of the short legislative session, adjourning for the year on March 20, 2021. We will keep an eye on the Virginia state legislature and actions moving forward.
District of Columbia
We saw movement in D.C. when voters showed support at the ballot box by passing Initiative 71 in 2014, which allows adults in D.C. to grow, possess, and gift marijuana but not sell it. Since then, we’ve seen Congress prevent D.C. from allowing the sale of cannabis by attaching a provision to D.C.’s appropriations bill that precludes the District from using its fund to legalize or regulate cannabis sales. The District’s Mayor, Muriel Bowser, is pushing forward with legalization to legalize cannabis in the District. The Safe Cannabis Sales Act of 2021 was introduced last Friday. It would legalize recreational cannabis sales in the District for people 21 and up. The bill also takes steps to combat the toll cannabis criminalization has taken on communities of color, expunge some marijuana-related offenses from people’s criminal records, funnel sales tax revenue into helping get start-ups off the ground, and creates a new license category for microbusiness and third-party “social equity” delivery services. Additionally, more revenue from cannabis sales would go towards funding organizations in wards 7 and 8, which includes women and minority-owned small businesses opening or expanding restaurants; small grocery stores; and public school after-school programs. D.C. would require cannabis vendors to have their products tested by an independent facility to track their potency and check them for contaminants. Days after Mayor Bowser unveiled her reform proposal, Council Chairman Phil Mendelson introduced a cannabis regulation bill. When comparing the two pieces of legislation there are some key differences surrounding tax rate, revenue, licensing, and expungements. For more details, check out Washington City Paper’s article here.
What’s next? As I mentioned previously, since 2014, Congress has included language in a spending bill that prevents the District from spending any of its funds to create a tax-and-regulate system. Because of this, the District has been stalled in implementing the sale of cannabis. However, now that Democrats control both houses of Congress and therefore the appropriations committees, we are hopeful that this rider preventing cannabis sales in the nation’s capital could be lifted.
According to the latest Gallup poll, 68% percent of Americans support legalizing cannabis, which is up from last year’s 66 percent. With support for full cannabis legalization growing, it’s not particularly surprising to see reform happening in these states. We are watching these states closely as they inch towards cannabis legalization. We see different entities making efforts to reform outdated cannabis laws; such as governors, mayors, advocates, patients, lawmakers, and the overall cannabis community. Together, through dedication and commitment, we will continue to move the ball forward in states and at the federal level.
Please stay tuned for more updates and please make sure to check out NCIA’s State Policy Map where all state updates are housed. As we continue the good fight it’s important to count our victories.
Senate Confirmation Hearings: Cannabis Edition
by Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations
Photo By CannabisCamera.com
You may have seen this week that there were a number of Senate confirmation hearings, and cannabis was a topic of discussion in some! But what are confirmation hearings, and what happened in them this week?
In Article II, Section 2, Clause 2 of the Constitution is the Appointments Clause, which empowers the President to nominate and, with the advice and consent of the Senate, appoint public officials. In layman’s terms, advice and consent essentially means confirmation.
As of publication, cannabis was brought up before two nominees this week: Attorney General nominee Merrick Garland, and Deputy Secretary of Treasury nominee, Adewale Adeyamo.
On Monday, President Biden’s nominee for Attorney General, Merrick Garland, appeared before the Senate Judiciary Committee. Before this, Garland’s position on cannabis was relatively unknown — he had ruled in a 2012 federal lawsuit case over DEA’s denial of a marijuana rescheduling petition and was one of three judges in the U.S. Court of Appeals for the District of Columbia Circuit panel that upheld the denial.
However, Garland’s position on cannabis became more clear this week — at least in how he views the Department of Justice’s role in enforcement and arrest disparities. While before the Senate Judiciary Committee on Monday, Garland was asked about marijuana arrest disparities by notorious cannabis champion Sen. Cory Booker (D-NJ). Sen. Booker asked:
“One big thing driving arrests in our country is marijuana arrests. We had in 2019 more marijuana arrests for possession then all violent crime arrests combined. When you break out that data and segregate along racial lines it’s shocking that an African-American has no difference in usage or selling than someone who is white in America, but their likelihood of being arrested for doing things that two of the last four presidents admitted to doing is three to four times higher than somebody white. Is that evidence that within the system there is implicit racial bias, yes or no?”
Garland responded: “It is definitely evidence of disparate treatment within the system, which I think does arise out of implicit bias. Unconscious bias may be, sometimes conscious bias.”
As Sen. Booker continued to question Garland about bias in the criminal justice system, Garland proactively brought marijuana back up, saying:
“The marijuana example is a perfect example. Here is a nonviolent crime that does not require us to incarcerate people and we are incarcerating at significantly different rates in different communities. That is wrong and it’s the kind of problem that will then follow a person for the rest of their lives. It will make it impossible to get for — to get a job and will lead to a downward economic spiral.”
Garland later continued:
“We can focus our attention on violent crimes and other crimes that put great danger in our society and not allocate our resources to something like marijuana possession. We can look at our charging policies and stop charging the highest possible offense with the highest possible sentence.”
But that wasn’t the only time the likely-soon-to-be Attorney General talked about cannabis. Freshman Senator Jon Ossoff (D-GA) asked Garland about equal justice, and highlighted the fact that “Black Americans continue to endure profiling, harassment, brutality, discrimination in policing and prosecution, sentencing, and incarceration.” While responding as to how his Justice Department would combat this, Garland said:
“One important way I think is to focus on the crimes that really matter, to bring our charging and arresting on violent crime and others that deeply affect our society. And not have such an overemphasis on marijuana possession, for example, which has disproportionately affected communities of color and damaged them far after the original arrest because of the inability to get jobs.”
During the “lightning round” of questions, Sen. Booker brought cannabis up again — this time, about enforcement and the now-rescinded Cole Memo. The Senator asked Garland, “Do you think the guidance in the Cole Memorandum should be reinstated, that the Justice Department respects states’ decisions?” Garland responded:
“I do remember it and I have read it. This is the question or prioritization about resources and prosecutorial discretion. It does not seem to me a useful use of limited resources that we have to be pursuing prosecutions in states that have legalized and are regulating the use of marijuana either medically or otherwise. I don’t think that is a useful use.”
This was, without a doubt, the most “cannabis positive” response from an Attorney General nominee in history! But the Judiciary Committee wasn’t the only one curious about cannabis this week!
Next, we move to the Senate Finance Committee, where Deputy Secretary of the Treasury nominee Adewale Adeyamo was being questioned Tuesday. During this hearing, Sen. Catherine Cortez Masto (D-NV) asked, “Do you believe Treasury should seek to update FinCEN’s 2014 guidance on the Bank Secrecy Act’s expectations for financial institutions that provide services to cannabis related industries, and if so, what changes do you recommend?” Adeyamo responded:
“Senator, I look forward, if confirmed, to talking to my colleagues at Treasury about this important issue and thinking through what changes may be needed and doing this in a way that’s consistent with the agency and the President’s guidance. In doing that I look forward to consulting with you and members of this Committee on our path forward.”
To be blunt, this is a really big deal! These questions show that the upper chamber of Congress is taking cannabis policy seriously, and expects the topic to be taken up by various agencies over the next four years. You can continue to count on the NCIA team to keep you updated, advocate on your behalf, and work with Congress and the Biden Administration to create a flourishing, responsible, diverse, and equitable cannabis industry.
Let the 117th Congress Begin
by Madeline Grant, NCIA’s Government Relations Manager
There is momentum brewing in Congress as we enter the 117th session. With Democrats controlling the House of Representatives, Senate, and White House, we certainly feel a hopeful shift in Washington that is exciting for the cannabis community. Last Congress, we saw various cannabis reform bills move through the legislative process on the House side, however, those efforts were then stalled in the Republican-controlled Senate. As we enter a new year, there’s also a new congressional dynamic and that gives us hope, for some different outcomes.
Last Friday, our Government Relations team met virtually with Senate Majority Leader Chuck Schumer (D-NY), Senate Finance Committee Chair Ron Wyden (D-OR), Sen. Cory Booker (D-NJ), and various stakeholders and advocates. These three key Senators are preparing to release new progressive, comprehensive cannabis legislation sometime in the early part of this year. The group discussed a wide variety of topics related to reform and focused primarily on cannabis justice and removing marijuana from the Controlled Substances Act. We, the National Cannabis Industry Association, are here to be a resource as Congress moves the ball forward and we’re proud to represent your business in Washington, D.C.
On February 1, the three Senators released a joint statement. They stated, “The war on drugs has been a war on people — particularly people of color. Ending the federal marijuana prohibition is necessary to right the wrongs of this failed war and end decades of harm inflicted on communities of color across the country. But that alone is not enough. As states continue to legalize marijuana, we must also enact measures that will lift up people who were unfairly targeted in the war on drugs.”
“With the launch of our DEI initiatives, NCIA is committed to ensuring that restorative justice and opportunities for Black and brown entrepreneurs in the burgeoning cannabis industry are at the center of our work,” said Tahir Johnson, NCIA’s Business Development Manager, and DEI Program Manager. “As the industry’s leading trade association, we’ve taken strides to ensure that not only our membership but also the Board of Directors and thought leadership is representative of that work. Through our policy and government relations work, we aim to make certain that social equity remains at the forefront of legislative conversations this session.”
Undoubtedly, there is a lot of work that needs to be done, and as a unified front, we can accomplish this successfully. As the government relations team discussed cannabis policy in a virtual meeting last Friday, we saw an open discussion for all organizations, advocates, and others. The Senators underscored the importance that we are united in our efforts to pursue reform.
Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations, attended the virtual meeting. She said, “The meeting with Leader Schumer and Senators Wyden and Booker was phenomenal. Beyond that, it was historic. I’m looking forward to working with those offices on issues like tax policy, regulations, and creating a diverse and equitable industry that allows businesses of all sizes to thrive. I’m also honored to work alongside the other stakeholders included on the call (and others) this session to pass exciting, groundbreaking legislation.”
The NCIA Government Relations team hopes to hear from you, our members, about any questions or concerns you have. As we continue to meet with lawmakers, we will keep you attuned to policy reform moving forward. If you haven’t checked out NCIA Connect, our online platform for networking with your fellow NCIA members, make sure you log in today to stay even more inspired, informed, and connected.
What To Watch: The Executive Branch Edition
by Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations
Photo By CannabisCamera.com
Last week, I wrote about what to expect during the 117th Congress. This week, I want to highlight the incoming Biden Administration, and the various agencies and Cabinet officials that could affect cannabis policy going forward over the next four years.
The tradition of the Cabinet dates back to the beginnings of the Presidency itself. Established in Article II, Section 2, of the Constitution, the Cabinet’s role is to advise the President on any subject he may require relating to the duties of each member’s respective office. The Cabinet includes the Vice President and the heads of 15 executive departments — the Secretaries of Agriculture, Commerce, Defense, Education, Energy, Health and Human Services, Homeland Security, Housing and Urban Development, Interior, Labor, State, Transportation, Treasury, and Veterans Affairs, as well as the Attorney General.
Here’s my breakdown of the top three agencies I’ll be watching:
Treasury Department
In February 2014, the Treasury Department issued guidance to clarify Bank Secrecy Act (BSA) expectations for financial institutions seeking to provide services to marijuana-related businesses. However, over the last seven years, the policy landscape surrounding cannabis has changed dramatically — at the time this guidance was issued, only Colorado and Washington had legalized adult-use cannabis. Now, there are 15 states plus the District of Columbia that allow for the adult-use of cannabis and 36 states with medical cannabis laws.
Incoming President Biden has nominated former Federal Reserve Chairwoman Janet Yellen for the post of Treasury Secretary. Though her position on cannabis is relatively unknown, it’s definitely possible that this guidance could be updated or expanded. Additionally, if the SAFE Banking Act is passed by Congress, the Treasury Department would then be in charge of ensuring that the implementation of that legislation goes smoothly.
Department of Justice (DoJ)
Here’s the big one everyone in cannabis will be watching: the Department of Justice. President Biden has selected Merrick Garland as his nominee for Attorney General, and everyone seems to be wondering the same thing: could there be a new “Garland Memo” ala the Cole Memo?
If you’ll remember, during the Obama Administration in 2013, the Department of Justice issued the Cole Memo, which outlined enforcement priorities for the Department as states were beginning to set their own cannabis policies. Under the Trump Administration, that memo was rescinded in January 2018 by then-Attorney General, Jeff Sessions.
It’s certainly possible that a Garland DoJ could unveil a new cannabis-related memo. Outside of enforcement priorities, the Department could also direct other agencies to reevaluate their policies around cannabis and housing, immigration, and the armed forces.
Small Business Administration (SBA)
In 2018, the Small Business Administration (SBA) came out with a notice to all employees and lenders that updated their policies surrounding marijuana businesses. They stated, “Because federal law prohibits the distribution and sale of marijuana, financial transactions involving a marijuana-related business would generally involve funds derived from illegal activity. Therefore, businesses that derive revenue from marijuana-related activities or that support the end-use of marijuana may be ineligible for SBA financial assistance.” They then went on to outline the ineligibility of direct and indirect marijuana businesses, as well as hemp-related businesses (this was pre-2018 Farm Bill) to participate in SBA programs.
This could all change under a Biden Administration, however. The President-elect has tapped Isabel Guzman as Small Business Administrator — she currently serves as the director of California’s Office of the Small Business Advocate. While her position on marijuana is unknown, I’m incredibly hopeful for reform under Guzman — her familiarity with small businesses in California means she is surely well informed on the struggles the cannabis industry faces.
These are just a few of the agencies that I’m watching, but there are many others to keep an eye on: the Veterans Administration, Health and Human Services, and FDA, just to name a few. And, as always, NCIA will be working to advance positive reforms within the executive branch at every opportunity.
Make sure you’re subscribed to NCIA’s CannaBusiness Leader to stay up to date on the latest and find me over on NCIA Connect with any questions or feedback!
The 117th Congress – What To Watch
Before we dive into what to watch this Congress, we’d like to acknowledge the totally unacceptable and disgusting violence that besieged the Capitol recently. You can read NCIA’s statement on the insurrectionhere.
by Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations
Photo By CannabisCamera.com
We’re barely halfway through January, and it already feels like so much has happened in 2021! We at NCIA anxiously watched along with the rest of the country to see who would be victorious in the Georgia Senate races and, subsequently, which party would control the U.S. Senate. Both of the Democrats, Rev. Raphael Warnock and Jon Ossoff defeated their Republican opponents and won their races —- ensuring that the Senate will be split 50-50 with Vice President-elect Harris being the tiebreaker.
The 117th Congress has barely begun, but after Inauguration Day on January 20th, things will really take off here in the nation’s capital. Keep reading to see my answers to FAQ’s for the new Congress:
Whatever happened to the SAFE Banking Act?
During the 116th Congress, the SAFE Banking Act (H.R. 1595/S. 1200) became the first cannabis-related bill to be passed by a chamber of Congress. In September of 2019, SAFE came to the House Floor under a suspension of the rules and passed by a whopping 321-103. While the bill had a hearing in the Senate Banking Committee back in the summer of 2019, it never received a markup or moved further than that. In addition to the bill itself, the SAFE Banking Act was also included in not one, but two COVID-19 relief packages passed by the House, colloquially known as HEROES I & II.
This session, the SAFE Banking Act will be back, and with even better chances to pass! The bill will be reintroduced in both the House and Senate in the next 1-2 months and we expect little to no changes to the text. Additionally, we’re also continuing to work with our Hill champions on this issue to see if we can get the language included in the next COVID-19 relief package — something that both President-elect Biden and Democratic leadership has said is pretty much priority number one.
In the meantime, keep an eye out for reintroduction and for how many cosponsors the bill has when it’s dropped — when the 116th Congress ended, SAFE had already passed the House as but also had 33 Senate cosponsors — that’s one-third of the entire chamber!
What’s next for the MORE Act and comprehensive cannabis reform? Is legalization on the horizon?
Cannabis policy ended the year on a high note (no pun intended!) when the Marijuana Opportunity, Reinvestment, and Expungement Act (H.R. 3884), commonly known as the MORE Act, passed out of the House of Representatives by a vote of 228-164.
As I mentioned earlier, all eyes were on the Georgia Senate races as we strategized over what could be possible for the 117th Congress depending on the outcome. With the results in, we now have a better idea about what’s possible with comprehensive reform, but there’s still a lot of unknowns. We know that the MORE Act will be reintroduced sometime in the coming months in both the House and Senate. In the Senate, the lead sponsor was Kamala Harris, who is now Vice President-elect, which means another Senator will have to pick up the torch. I can’t share with you who it’s going to be just yet, but trust me when I say they will be a wonderful lead and are a true champion for cannabis reform!
A reintroduced MORE Act will likely have a good number of edits and changes, but the underlying intent of the bill will be the same: to remove cannabis from the Controlled Substances Act and help repair the harms the war on drugs has done — specifically to communities of color.
We also know that comprehensive reform, in general, has a better chance of advancing given that Democrats now control the Senate. Sen. Schumer (D-NY) was quoted in October as saying if he’s reinstalled as Majority Leader he “will put this bill in play,” and “I think we’ll have a good chance to pass it”, talking about his own bill, the Marijuana Freedom and Opportunity Act (S. 1552).
All of that being said, legalization, or the passage of comprehensive reform is far from a done deal. Legislation requires 60 votes for passage in the Senate, and we have a lot of hard work to do to get to that level of support in the upper chamber. In the House, Democrats have an even slimmer majority now than during the 116th Congress, so we also have to make sure we don’t lose support there.
What about appropriations?
You’ve been involved in cannabis for a long time if you remember when the appropriations process was the only way to get Congress to talk about this issue. But now, with Democrats controlling both chambers, you may be hearing more about these amendments again.
Appropriations bills are legislation in Congress that “appropriates,” or sets aside, federal funds to be divided between specific federal government departments, agencies, and programs. Read more about this process and why it matters for cannabishere.
Over the last few years, the House has continued to pass marijuana-related amendments but were unable to get through the Senate due to Republican control and a “gentleman’s agreement” between the Chair and Ranking Member of the Senate Appropriations Committee. But now, all of that will change.
In the past, appropriations amendments have been introduced that touch on a multitude of issues: research, veterans, medical and adult-use cannabis, hemp, banking… the list goes on! In this session, expect to see cannabis-related amendments included in the final budget. Just remember that budget bills must be passed annually, so anything that comes into law this way must be renewed again next year!
What’s going to happen at the committee level?
If you’re following cannabis policy at the federal level, definitely keep your eyes on what’s happening in various congressional committees. Given who controls both chambers, all of the committees will now be chaired by Democrats, which means you’re going to see a lot of cannabis-related bills come up for hearings and markups. Some I’ll be keeping my eye on, including both chambers’ appropriations, financial services, tax, and judiciary committees.
The opportunities for reforming our outdated cannabis laws have never been brighter than they are right now as we begin the 117th Congress. Bills are going to begin dropping left and right — and that’s because there’s a ton of excitement, enthusiasm, and optimism about what we can accomplish over the next two years.
Want to learn more about what’s possible? Make sure your company is an active member of NCIA and register for our next members-only webinar with our government relations team on Wednesday, January 27, or, if you can’t make it, hop on over to NCIA Connect to chat with us and learn more about what we’re working on in D.C.!
Historic Victory in the House: The MORE Act
by Madeline Grant, NCIA’s Government Relations Manager
On Friday, December 4, the House of Representatives made history by voting to approve H.R. 3884, the Marijuana Opportunity, Reinvestment, and Expungement (MORE) Act. The MORE Act would remove marijuana from the federal Controlled Substances Act and work to repair the social and personal harms caused by federal marijuana enforcement. This is the first time since marijuana was made federally illegal that either chamber of Congress has held a floor vote on- or approved- a bill to make the substance legal again. The final vote count of 228-164 fell mostly along party lines, with five Republicans crossing the aisle to support, and six Democrats voting to oppose.
This monumental victory shows just how far Congress has come over the years. Although this vote more closely aligns the House of Representatives with the majority of voters who overwhelmingly support cannabis legalization, the Senate is a different story.
As we have seen over and over again, the Senate Republicans continue to obstruct cannabis reform measures. The House passed the SAFE Banking Act in September 2019 and included the SAFE Banking language in two COVID-19 relief packages, however, there has been little activity on these topics in the Senate. Republican Senators have repeatedly spoken out in opposition of bringing up cannabis policy amidst the pandemic, stating that it’s not the time or place. But as I mentioned before, it’s also important to note that the House has passed not one, but two COVID relief packages in the last 6+ months that the Senate (namely, Leader McConnell) has refused to take up. That being said, despite a global pandemic, support for cannabis reform remains strong, a recent Gallup poll showed a record 68% of Americans support making cannabis legal. On Election Day, voters in Arizona, Montana, and New Jersey approved measures to regulate cannabis for adults, while Mississippians overwhelmingly approved a medical cannabis referendum, and voters in South Dakota passed both adult-use and medical initiatives. The vote and passage of the MORE Act on the House show that House leadership is listening.
The MORE Act, sponsored by the House Judiciary Committee Chairman Jerry Nadler (D-NY) and 120 cosponsors, would not only mitigate the federal-state conflict by removing cannabis from the Controlled Substances Act, but it would also require the expungement of past federal cannabis convictions. The bill would also establish a Cannabis Justice Office to administer a program to reinvest resources in the communities that have been most heavily impacted by prohibition, funded by a tax on state-legal cannabis commerce. It would also allow the Small Business Administration to provide loans and grants to cannabis-related businesses and support state and local equity licensing programs, permit doctors within the Veterans Affairs to recommend medical cannabis to patients in accordance with applicable state laws, and prevent discrimination based on cannabis consumption during immigration proceedings.
When the House version of the MORE Act was originally introduced in 2019, it was referred to eight Committees (with the Judiciary Committee being primary). Each Committee had provisions of the bill that fell under its jurisdiction and had authority to hold hearings and or amend specific jurisdictional provisions. Two Committees (Energy and Commerce and Ways and Means) were expected to be very active on language affecting regulations and taxes. The Energy and Commerce Committee even held a legislative hearing on MORE in January, and were expected to hold more… and then COVID hit… and priorities changed.
Before the Floor vote, the main sponsor of MORE, Judiciary Chairman Jerry Nadler, offered a “manager’s amendment.” The majority of the language was taken straight from H.R. 1120/S. 420: the Marijuana Revenue and Regulation Act. It included a graduated tax, and language on federal permitting and bonding. During debate, Congressional leaders gave assurances to include the cannabis industry advocates in future discussions and listen to cannabis industry concerns. Although passage of the MORE Act is historic, no legislation is perfect and NCIA staff will continue working with congressional champions to improve MORE and eventually get it passed into law.
Now, as we near the end of the 116th Congress, the NCIA team will continue to work and strategize various ways forward in Washington, D.C– on SAFE Banking, the MORE Act, and beyond. As we see more and more legislative victories each Congress, it is important to relish in our success and continue to propel the momentum forward (we could all use a moment to celebrate after 2020!). The MORE Act vote, being the most comprehensive cannabis bill on Capitol Hill, gives us the momentum to accomplish more in the next congressional session. Thank you to each and everyone one of you who took the time to call your Representative. Stay tuned for the 117th Congress!
Senate Race Runoffs in the Peach State
By Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations
As you’ve probably heard by now, which party controls the Senate won’t be known until January 5 — but those results could quite literally determine if marijuana will become federally legal over the next few years.
In Georgia, no candidate can advance through a primary or a general election system without first earning more than 50% of the votes. If no one does, the top two vote getters advance to a runoff election, ensuring that one will earn the majority of votes cast.
This year, the state’s two Senate races — one regular, the other a special election to fill the remainder of a retired senator’s seat — have gone to a runoff. The first will be between incumbent Sen. David Perdue (R) and Democrat Jon Ossoff; the latter will be between Republican Sen. Kelly Loeffler and Democrat Rev. Raphael Warnock. If Democrats win both seats, the Senate will be tied 50-50, and Vice President-elect Kamala Harris would be the tie breaking vote.
It can’t be overstated that the Democrats have an uphill (but not impossible!) battle ahead. In November, Sen. Perdue garnered 86,000 more votes than Ossoff, while Warnock benefited from the fact that two Republicans — both Sen. Loeffler and Rep. Doug Collins — were on the ballot in his race, splitting the party’s votes.
And of course, it’s 2020, so I would be remiss not to mention the pandemic! The runoff is taking place in an off-election year in (what will likely still be) the middle of a serious surge of COVID-19 cases. On top of that, Republicans historically have a stronger track record of turning out in runoffs in the state.
Despite all of that, Democrats are working hard to turn out the vote and organize early. In addition to relying heavily on both first-time voters and Black voters, Democrats are also hopeful that young voters will be the key to winning the runoff in January. Ossoff recently said:
“There are 23,000 young people here in Georgia who will become eligible to vote just between the November election and this January 5 runoff, and a decade of organizing, much of this work led by Stacey Abrams, has put the wind in our sails here in Georgia. What we’re feeling for the first time in four years is hope.”
As I said before, which party controls the Senate could quite literally be the difference between whether or not cannabis could become federally legal in the next one to two years. Senate Minority Leader Chuck Schumer (D-NY) was interviewed in October and said:
“I’m a big fighter for racial justice, and the marijuana laws have been one of the biggest examples of racial injustice, and so to change them makes sense. And that fits in with all of the movement now to bring equality in the policing, in economics, and in everything else. Our bill is, in a certain sense, at the nexus of racial justice, individual freedom and states’ rights.”
Schumer was referencing the bill he introduced, the Marijuana Freedom and Opportunity Act, which would remove cannabis from the Controlled Substances Act, allowing states to set their own policies. It also includes provisions to help funding to cannabis businesses owned by women and people of color through the Small Business Administration; funding studies on traffic safety, impairment detection technology, and health effects of cannabis; restricting advertising that could appeal to children; and setting aside $100 million over five years to help states develop streamlined procedures for expunging or sealing prior cannabis convictions.
Time is of the essence. Voters must be registered by December 7 in order to participate in the runoff election. If you’re in Georgia, or know anyone who is a resident, please check out the Cannabis Voter Project to learn more and make sure you’re ready to vote. If you can, consider making a donation to the Ossoff campaign or the Warnock campaign. The future of cannabis legalization in this country depends on it!
Three Takeaways From The 2020 Election
by Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations
It may not feel like it, but election season 2020 is drawing near an end – mostly. While many of us have been glued to the news for what feels like an eternity, let’s take a look at what actually happened and focus on three main takeaways from the election and how they may impact cannabis policy in the 117th Congress.
Democrats maintained their majority in the House of Representatives — by a slimmer margin than expected
For the last two years, Democrats have held the majority in the House by a margin of 232-197. Many people in Washington and pollsters believed that that majority would increase this cycle, however, that was not the case. As of publication, Democrats hold 216 seats to Republicans’ 196, with 218 seats needed for the majority. A total of 23 seats have still not been called.
While votes are still being counted, it is expected that Democrats will retain a comfortable majority in the lower chamber. Leader Hoyer has already publicly committed to a vote on the MORE Act by the end of the year, which is expected to pass. However, the legislation will surely need to be reintroduced next session and will hopefully have a swift path through the legislative process.
The bottom line: Democratic leadership and committee chairs in the House have been incredibly receptive and supportive of reforming our outdated cannabis laws. Expect to see more of that in the 117th Congress and keep an eye on comprehensive bills like the MORE Act, and incremental bills like the SAFE Banking Act.
We won’t know who won the Senate until January 5
The race to control the Senate continues. As of publication, both Democrats and Republicans hold 48 seats, with four races (Alaska, North Carolina, and both Georgia seats) yet to be called. It’s expected that the Republican incumbents in both Alaska and North Carolina will hold on to their seats, which would give Republicans a total of 50 seats. That means the Senate majority will likely hinge on the two runoff Senate races happening concurrently in Georgia.
In Georgia, no candidate can advance through a primary or a general election system without first earning more than 50% of the votes. If no one does, the top two vote-getters advance to a runoff election, ensuring that one will earn the majority of votes cast. This year, the state’s two Senate races– one regular, the other a special election to fill the remainder of a retired senator’s seat — have gone to a runoff. The first will be between incumbent Sen. David Perdue (R) and Democrat Jon Ossoff; the latter will be between Republican Sen. Kelly Loeffler and Democrat Rev. Raphael Warnock.
In terms of cannabis, the uncertainty around the majority in the upper chamber leaves big question marks. If Democrats are able to take the majority, Leader Schumer (D-NY) has committed to bringing cannabis legalization up for a vote. Democratic committee chairs would also be more likely to bring up cannabis-related bills. However, if Republicans maintain control, we can expect more uphill battles. An important asterisk to that statement, however: Sen. Pat Toomey (R-PA) is expected to replace current Senate Banking Committee Chairman Mike Crapo (R-ID) if the GOP retains control. While Sen. Toomey is not a known cannabis champion, advocates feel optimistic about working with him on bills like the SAFE Banking Act.
We now (presumably) have a new President, Vice President, and Administration to work with
Former Vice President Biden and California Senator Kamala Harris are now presumably the President-elect and Vice President-elect of the United States. The campaign made history not only in terms of voter turnout but also by electing the first-ever female and woman of color vice president. President Trump has yet to concede and has vowed to fight the results, however, there has been no proof of voter fraud and the Biden/Harris team is already getting to work on the transition.
What does this mean for cannabis? President-elect Biden has repeatedly voiced his support for decriminalization, while future Madame Vice President Harris is the main Senate sponsor of the MORE Act. She has also continuously reiterated her commitment to expungement and resentencing for those convicted of cannabis offenses. Advocates also feel optimistic about working with a new administration that could potentially codify reform in various ways, such as memos.
Bonus: cannabis initiatives won big on election night
ICYMI, the real winner last Tuesday was marijuana! Arizona, Montana, New Jersey, and South Dakota all legalized adult-use cannabis, bringing us to 15 states with legal marijuana. South Dakota and Mississippi also legalized medical cannabis, bringing that total to 36 states. Want to learn more about what happened? Check out this awesome post NCIA’s Media Relations Director, Morgan Fox, put together.
I don’t know about the rest of you, but I think this was one long and anxiety-inducing election cycle! The results are still trickling in, but here at NCIA, we’re excited to continue working on behalf of you and your business. Have more questions about the election, or want to chat with our government relations team about the results? Find Mike, Michelle, Maddy, or Andrew over on NCIA Connect. Talk to you there!
2020 Marijuana Ballot Initiatives – Time to Make History!
by Madeline Grant, NCIA’s Government Relations Manager
With the election coming up just around the corner, 2020 could be another big year for our movement. It is imperative that we all head to the polls, send in our mail-in ballots and make our voices heard in this monumental election. This week I will briefly go over each ballot initiative that has officially qualified for the November ballot. As we continue to get closer to the election, I will get into detail about what each ballot initiative does for each state. 2020 has been a year of uncertainty and as we approach the election it is our duty as U.S. citizens to get out and vote and as members of the cannabis industry, it’s important that we support the expansion of markets by donating to initiative campaigns.
Without further ado please see marijuana ballot initiatives below:
More information provided by the Marijuana Policy Project here.
Nebraska – Medical marijuana ballot initiative is no longer happening due to the Nebraska Supreme Court deeming the legalization of medical marijuana on the November ballot as unconstitutional. Following over 180,000 signatures by Nebraskans in support of the measure, the Supreme Court decided to not include the vote on November’s ballot on the day before the deadline. The justification of unconstitutionality came from Nebraska’s single-subject rule for a ballot measure, which bans multiple issues into yes-or-no questions for voters to address.
It is more important than ever to get out and vote. Our government relations team works hard in our nation’s Capital to achieve legislative victories at the federal level; however, achieving legislative victories at each state is just as important. It is through each successful ballot initiative at the state that provides the proof and support for legislative change and policy reform at the federal level. States are moving forward; therefore, we must be on Capitol Hill. We must keep fighting the good fight and get out and show our support for cannabis policy reform.
Are you interested in any of these states or want to learn more about one of these ballot initiatives? If so, please feel free to reach out to me to set up a meeting to discuss the information in more detail or contact the campaigns directly to find out how you can support them.
Together We Can – Working To Achieve Legislative Victories
by Madeline Grant, NCIA’s Government Relations Manager
Can you believe we are already coming to the end of August? 2020 has certainly not been what we were expecting – but we will persevere together. At NCIA, we want you to know we are here for you through these unstable times and now more than ever we will stand as a united cannabis community. As members of NCIA, we appreciate your dedication and contribution to continue the good fight to reach legislative victories at the state and federal levels. With your dedication to NCIA and our dedication to you, we can continue to achieve success through education and advocacy.
As the Government Relations Manager, I want you to know we are still working continuously in D.C., with a unified message, to achieve legislative victories. Next month, the House of Representatives may vote to make cannabis legal and start repairing the harms caused by decades of failed prohibition policies. As the legislative session draws to a close and what is sure to be one of the most pivotal elections in history nears, there is a renewed effort in Congress to pass meaningful criminal justice reform before the end of the year. And this includes the Marijuana Opportunity, Reinvestment, and Expungement (MORE) Act.
The MORE Act was introduced in the House last year by Rep. Jerry Nadler (D-NY) and already made history when it became the first legislative bill to be approved by the congressional committee (House Judiciary) in November.
This legislation would remove cannabis from the Controlled Substances Act, effectively decriminalizing it at the federal level and eliminating the ongoing conflict with effective regulated state cannabis markets. It would also expunge federal cannabis convictions, remove barriers to research, eliminate the current problems with the 280E tax code and lack of access to banking, promote more diverse participation in the cannabis industry, and establish funds to help undo the harms that have been disproportionately inflicted on marginalized communities by the war on drugs.
Now, a growing chorus of lawmakers are calling for it to receive a floor vote in the House in September, and we need your help!
Pleasecall your member of CongressTODAY and urge them to support the MORE Act and help bring it to a vote this year. When you call your representative’s office explain to them how important the MORE Act is to you and your business. The staffer that answers the phone is there to pass along the message to YOUR representative so the more calls they get the better.
NCIA Lobby Day, May 2017. Photo by Ben Droz
On another note, I’d love the opportunity to chat with you over the phone or zoom to discuss the challenges you are facing in the cannabis community. As we continue to meet with Hill offices virtually, it is important to relay your stories about the difficulties you face within the cannabis industry. Real-life examples help paint the picture of the reality our cannabis businesses face every single day. This is imperative to illustrate just how necessary legislative victories, like the MORE Act, are to us. So, if you have the time please send me an email to Madeline@TheCannabisIndustry.org and I will schedule a time for us.
As we draw closer to the end of this legislative session, the NCIA team will continue to work hard to reach legislative victories. We are nearing the 10th anniversary of NCIA and have come a long way together, from legislative victories in appropriations to the SAFE Banking Act passing the House, and we will continue to reach more legislative success in the halls of Congress. We must not lose hope during these unstable times but propel forward more unified than ever before.
SAFE Banking Not Included In Newest COVID-19 Relief Package
by Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations
Today, Senate Majority Leader Mitch McConnell (R-KY) and the GOP caucus unveiled the text of their long-awaited coronavirus relief package. The initial draft text of the bill did not include any cannabis provisions, namely, the SAFE Banking Act.
If you’ll recall, back in May, the House of Representatives passed the HEROES Act, which included the text of H.R. 2215, the SAFE Banking Act. The language included in the House-passed HEROES Act would make it easier for financial institutions to work with cannabis businesses that are in compliance with state law, as well as help address serious public health and safety concerns caused by operating in predominantly cash-only environments. After the House passed the bill, it remained in the Senate while the GOP-controlled chamber came up with their own version.
But, a lot can change in a few months. Since HEROES passed the House in May, NCIA has been hard at work (from home!) talking to House and Senate leadership, as well as other key Senate offices. The good news is that those conversations have been overwhelmingly positive and we feel incredibly hopeful that the discussion about SAFE Banking will continue to be a part of the conversation as negotiations progress.
Make sure you stay engaged and continue to tell your lawmakers that you are a cannabis voter and that these issues are important to you! Contact your Senators today and ask that they support SAFE Banking as a necessary piece of legislation that can help the tens of thousands of cannabis workers stay healthy by allowing our industry access to legitimate banking and end our cash-only operations.
Want to make sure you hear the latest about what’s happening in cannabis policy? Follow NCIA on social media and be sure to share important information and resources as we release them with your networks, because we’re going to need all of us in this together!
The most important thing anyone can do to make sure SAFE Banking and other important reforms are realized in Congress is to ensure that their cannabis business is a member of NCIA. If you are not yet a member, please support our work by joining today. If you already are a member, thank you for making our advocacy work possible.
Looking Back On #10YearsOfNCIA: 2014-2015
by Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations
Earlier this month, I took a retrospective look at the progress NCIA made in its early years (2010-2013). I started with the organization in 2014, so I’m excited today to take a walk down memory lane and look back at another era of NCIA history: 2014-2015! While this timeline is by no means a comprehensive look at everythingthat’s happened in cannabis policy during those years, here are some highlights:
February 2014
Department of the Treasury’s Financial Crimes Enforcement Network (“FinCEN”) published its own expectations regarding marijuana-related business guidelines. These guidelines, issued on February 14 and commonly referred to as the Valentine’s Day guidance, attempted to clarify Bank Secrecy Act (“BSA”) expectations for financial institutions seeking to provide services to marijuana-related businesses. FinCEN issued this guidance as states continued to set their own cannabis policies, and just months after the Cole Memo was issued.
May 2014
The Rohrabacher-Farr Amendment passes the U.S. House of Representatives for the first time ever with a vote of 219-189. While I had not started with NCIA just yet, I was in touch with our Director of Government Relations, Mike Correia, that night. Mike spent that evening doing two things: lobbying in the Capitol and running to the hospital to be with his wife, who was in labor! I remember waking up the next morning to learn two things: first, that states with medical cannabis programs and patients were going to be protected, and second, to find that Mike was the father of a baby girl!
June 2014
NCIA hosts our 1st Annual Cannabis Business Summit & Expo in Denver, bringing hundreds of cannabis industry professionals together.
October 2014
NCIA hires their second government relations staffer, ME! At the time, I was hired to be the Government Relations Coordinator and it changed my life forever.
November 2014
Oregon, Alaska, and Washington, D.C. all vote to legalize adult-use cannabis. However, because Congress has the final say over D.C. policies, the District still does not have any adult-use dispensaries.
March 2015
For the first time ever, pro-cannabis legislation is introduced in the U.S. Senate as S. 683, the Compassionate Access, Research Expansion, and Respect States (CARERS) Act of 2015. I remember that day well– Mike and I were there at the press conference with the architects of the bill, Sens. Booker (D-NJ), Gillibrand (D-NY), and Paul (R-KY).
April 2015
NCIA hosts its Fifth Annual Cannabis Industry Lobby Days in Washington, D.C., and brings dozens of cannabis industry professionals to the halls of Congress to talk directly with members of Congress and their staff. That same month, Mike and I moved into the first NCIA-DC office.
June 2015
The Rohrabacher-Farr amendment passes the U.S. House of Representatives for the second time by a wider margin of 242-186. Later that month, the U.S. Senate Appropriations Committee passed the companion Mikulski medical cannabis amendment by a vote of 20-10.
NCIA hosts its 2nd Annual Cannabis Business Summit & Expo in Denver. This also marked the first time a Presidential contender (Sen. Rand Paul, R-KY), hosted a private fundraiser with the cannabis industry.
July 2015
NCIA hires two well established D.C. lobbying firms to represent the industry on Capitol Hill. This was the first time in history that a “white shoe” firm worked to further pro-cannabis legislation. Nowadays, there are dozens of lobbying firms involved in this space!
Sen. Jeff Merkley (D-OR) introduced the Senate version of the Marijuana Businesses Access to Banking Act. This bill was the precursor to the SAFE Banking Act, and to this day, Sen. Merkley is our biggest advocate for banking in the chamber!
September 2015
Sen. Kirsten Gillibrand (D-NY) gives the opening keynote speech at NCIA’s Fall Regional Cannabis Business Summit. That same month, GOP presidential contenders were askedabout cannabis policy at a CNN Debate, showing the mainstream acceptance of this issue.
October 2015
Democratic presidential contender and Senator Bernie Sanders introduces the Ending Federal Marijuana Prohibition Act of 2015 (S. 2237), becoming the first major-party presidential candidate to support the legalization of adult-use cannabis. Also that month, United States District Judge Breyer lifted an injunction against a California medical cannabis dispensary, citing the Rohrabacher-Farr amendment.
November 2015
NCIA celebrates its 5th Anniversary in Las Vegas and honors Rep. Barbara Lee (D-CA) with the 2015 Legislator of the Year Award.
Photo By CannabisCamera.com
Looking back, those early years of NCIA were without a doubt integral to where we are now in cannabis policy. Make sure you keep an eye on future issues of NCIA’s Cannabusiness Leader to learn more about 2016-2017 and all the progress we made during those years!
Looking Back On #10YearsOfNCIA: 2009-2013
Photo By CannabisCamera.com
by Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations
As NCIA continues into our tenth year advancing the interests of the cannabis industry, all but three U.S. states have some kind of cannabis law on the books, 10 have regulated the commercial production and sale of cannabis for adults, two-thirds of Americans support national legalization, and Congress is closer than ever to making that a reality.
I started with NCIA nearly six years ago, so I’ve witnessed much of the progress we’ve made firsthand — especially the strides forward we’ve made in policy and in the halls of Congress! Let’s take a look back to the early years of NCIA (2010-2013) to see just how far we’ve come in the last decade.
October 2009
The Ogden Memo is released by the Justice Department, directing prosecutors not to prioritize the use of federal resources to prosecute patients with serious illnesses or their caregivers who are complying with state laws on medical marijuana, laying the groundwork for a new national industry. Personally, I consider the Ogden Memo to be the mother of the now-rescinded Cole Memo.
November 2010
NCIA is formed as the cannabis industry’s only national trade association by long-time marijuana policy reform leaders Aaron Smith and Steve Fox.
March 2011
Six association members join Smith and Fox for NCIA’s 1st Annual Cannabis Industry Lobby Days in Washington, D.C. Now, Lobby Days brings hundreds of cannabis industry professionals to D.C. and includes VIP Day, receptions, and opportunities to mingle with over a dozen members of Congress and their staff.
May 2011
The Small Business Banking Improvement Act of 2011 (H.R. 1984), which would exempt state-legal cannabis businesses from Suspicious Activity Report requirements, is introduced in the U.S. House of Representatives by then-Rep. Jared Polis. This bill was the precursor to the Marijuana Businesses Access to Banking Act, which was the precursor to the SAFE Banking Act.
May 2011
The Small Business Tax Equity Act of 2011 (H.R. 1985), which would correct the unfair tax burden of Section 280E, is introduced in the U.S. House of Representatives by Rep. Pete Stark (D-CA). That bill has been re-introduced in every congressional session since 2011. Today, the Small Business Tax Equity Act (H.R. 1118) has 11 cosponsors (compared to over 40 last session), but don’t think it’s because 280E isn’t important– advocates and congressional staff have simply been focused this session on passing SAFE Banking.
June 2011
Rep. Barney Frank (D-MA) and Rep. Ron Paul (R-TX) introduced the Ending Federal Marijuana Prohibition Act of 2011 (H.R. 2306) with NCIA’s support. The bill would have ended prohibition and legalized cannabis at the federal level by amending the Controlled Substances Act. It would then transfer the authority to regulate cannabis from the Drug Enforcement Administration to the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
November 2012
Colorado and Washington become the first two states to legalize marijuana for adult use and sales via voter initiative. NCIA, while an infant of an organization, proudly supported both of these initiatives even as some in the industry didn’t support full legalization at that time. In fact, our co-founder Steve Fox was one of the primary authors of Colorado’s Amendment 64 and our former Deputy Director, Betty Aldworth, was a campaign spokesperson just before joining NCIA.
April 2013
NCIA hosts conservative tax reform champion, Grover Norquist, at its third annual Cannabis Industry Lobby Days in Washington, D.C. While there, Norquist discussed Americans for Tax Reform’s (ATR) release of a white paper titled Legal Cannabis Dispensary Taxation: A Textbook Case of Punishing Law-Abiding Businesses Through the Tax Code. The paper discussed Section 280E of the tax code, which is still misapplied to legal cannabis businesses and creates an effective tax rate two to four times that of other small businesses. Norquist also announced ATR’s endorsement of the Small Business Tax Equity Act.
July 2013
Congressional cannabis champion Rep. Ed Perlmutter (D-CO) introduces the Marijuana Businesses Access to Banking Act of 2013 (H.R. 2652) in the House of Representatives. This bill was the precursor to the SAFE Banking Act which has been approved (twice) by the House of Representatives in the last year.
August 2013
James M. Cole, the Deputy Attorney General, issues new guidance regarding marijuana enforcement and banking, referred to as the “Cole Memo.” The memo indicated that prosecutors and law enforcement should focus only on the following priorities related to state-legal cannabis operations:
Preventing the distribution of marijuana to minors;
Preventing revenue from the sale of marijuana from going to criminal enterprises, gangs, and cartels;
Preventing the diversion of marijuana from states where it is legal under state law in some form to other states;
Preventing state-authorized marijuana activity from being used as a cover or pretext for the trafficking of other illegal drugs or other illegal activity;
Preventing violence and the use of firearms in the cultivation and distribution of marijuana;
Preventing drugged driving and the exacerbation of other adverse public health consequences associated with marijuana use;
Preventing the growing of marijuana on public lands and the attendant public safety and environmental dangers posed by marijuana production on public lands; and
Preventing marijuana possession or use on federal property.
September 2013
Sen. Leahy (D-VT), Chairman of the Senate Judiciary Committee holds an oversight hearing on federal marijuana policy. Both Attorney General Eric Holder and Deputy Attorney General James Cole testified. The hearing, titled “Conflicts between State and Federal Marijuana Laws” came just months after two states, Washington and Colorado, legalized small amounts of cannabis for personal use by adults over 21. At the time, twenty states and the District of Columbia had legalized medicinal cannabis.
November 2013
NCIA hires a Director of Government Relations in Washington, D.C., the first-ever full-time lobbyist on behalf of cannabis businesses at the federal level. That was the man, the myth, the legend: Michael Correia, who is still here nearly seven years later! The Washington Posteven profiled the nation’s first full-time cannabis lobbyist.
Looking back, those early years of NCIA were without a doubt integral to where we are now in cannabis policy. Make sure you read next week’s edition to learn more about 2014-2016 and all the progress we made during those years!
Veterans And Cannabis: A Discussion With Congressional Champions
by Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations
Last week, NCIA’s Government Relations team honored the veteran community and Memorial Day through our latest #IndustryEssentials webinar. Our Director of Government Relations, Mike Correia, and I “Zoomed” with congressional cannabis champions Congressman Lou Correa (D-CA) and Congressman Earl Blumenauer (D-OR), as well as the cofounders of the Veterans Cannabis Coalition, Eric Goepel and Bill Ferguson. During the webinar, we talked about how through cannabis, veterans of all generations and with various conditions have experienced improvements in their quality of life and also discussed policy and legislation to address this conundrum. NCIA members can catch the full webinar recording, but in the meantime, check out a few highlights:
Congressman Earl Blumenauer (D-OR):
“In fact, if we were able to have the Veterans Administration (VA) embrace medical cannabis, veterans would get better care because they could deal directly with their primary care physician, who is in the best position to give them appropriate advice. But sadly, the VA is caught with this federal restriction and they have a very narrow interpretation of what they can do, and how they can do it, and they simply do not permit their physicians to work with veterans to discuss and work with — let alone prescribe — medical cannabis.”
Congressman Lou Correa (D-CA):
“These folks came back from the theater of war with a lot of invisible, psychological scars– many of them that never were addressed. Back when I was the Chair of the Veterans Affairs Committee in the state of California, I would go on to have town halls and I remember veterans more and more would ask me, ‘Hey state senator, what’s going on with cannabis? I prefer cannabis to opioids, it makes me feel a lot better, I’m being able to function much better, why can’t I be prescribed cannabis by my VA doctor?’ And that really set me off on a quest to address medical cannabis in reference to veterans. Now in Congress, that’s something that I’m trying to work on front and center, and when I say trying to — I am working on it — I’m trying to score some victories there and get this legislation to the President’s desk for a signature, but again in the context of an election coming up, it’s going to be a challenge. But nonetheless, I think it’s a task all of us must take to heart and work hard towards.”
Veterans Cannabis Coalition Co-Founders:
Bill Ferguson: “I think it’s really cool that both of those politicians you know — and you know, they’re not backbench guys either — they essentially say that, you know, like if we can get the VA bill to pass, that will be like opening the floodgates for the rest of the cannabis legislation, you know like the banking and all that kind of stuff. And I think they’re right because you know once you poke a hole in a dam, you know eventually a dam is going to break.”
Eric Goepel: “The problem is that they’re largely out of step with the population — like the general population and the veteran population. I mean Pew’s been tracking public support for medical cannabis legalization and adult-use legalization and it’s 92% in favor of medical use and 60 plus in favor of legalization. That’s pretty overwhelming when it comes to any political issue. Like these issues out-poll most politicians and popularity and certainly, maybe beyond like universal background checks, I can’t think of too many other major policy issues that have this level of public support that see no conversion into federal legislative change.”
We are all so grateful to the Congressmen and the VCC team for joining us. While Memorial Day has now passed, I’m continuing to feel so appreciative of our fallen service members. While all gave some and some gave all, the vast majority of our veterans are still unable to access safe, regulated cannabis, and since they fought for us, we’ll keep fighting for them.
Pushing For SAFE Banking In The Next Coronavirus Relief Package
by Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations
For years, NCIA has been lobbying for the SAFE Banking Act. Now, as we adjust to our “new normal,” we are trying to make lemonade out of the lemons we’ve been given and see if some provisions of the SAFE Banking Act can be attached to the next coronavirus relief package.
To that end, last week ten cannabis advocacy and industry organizations sent a letter to congressional leadership urging lawmakers to include the Secure and Fair Enforcement (SAFE) Banking Act or similar language in the next pandemic relief package which would create a safe harbor for banks and other financial services providers to work with cannabis and ancillary businesses that are in compliance with state law.
Signatories included Americans for Safe Access, Global Alliance for Cannabis Commerce, Marijuana Policy Project, Minority Cannabis Business Association, National Association of Cannabis Businesses, National Cannabis Industry Association, National Cannabis Roundtable, National Organization for the Reform of Marijuana Laws, Policy Center for Public Health and Safety, and Safe and Responsible Banking Alliance.
The coalition wrote,
“In 2019, it is estimated that sales of cannabis in the United States topped $12 billion– the vast majority of which were cash transactions. Previously, this situation created an unnecessary public safety risk and undue safety burden on state and local tax and licensing authorities who must receive and process large cash payments. Now, as recent reports show that viruses can live on cash for up to 17 days, the public safety concerns of this cash-only system compound. The lack of access to financial institutions places industry workers, government employees, and the public at-large at risk as banknotes circulate from consumers and patients to businesses to government.”
Even the lead sponsors of the SAFE Banking Act weighed in. Senate lead Sen. Jeff Merkley (D-OR) told NCIA, “Locking legal businesses out of traditional banking services—leaving them with no option but to operate exclusively in cash—has long put workers in danger. And now in the face of this pandemic, it’s making it increasingly difficult for these businesses to keep their workers and customers safe while they fight to stay afloat. The SAFE Banking Act is more important than ever to these businesses and the families who rely on them, and I’m committed to doing everything I can to get it passed.”
Congressman Ed Perlmutter (D-CO) also weighed in, stating, “Cannabis businesses and their employees already face a significant public safety risk without access to the banking system, and the COVID-19 crisis has only exacerbated this risk with these essential businesses having to move their cash-only transactions outside the store. At the same time, many of these businesses are facing disruptions in their supply chain and in normal operations and they should be eligible for relief just like any other legal, legitimate business during this pandemic. I will continue to push for inclusion of the SAFE Banking Act or other forms of relief for this industry in the next package.”
The next coronavirus relief package is set to be unveiled any day. Here at NCIA, we remain cautiously optimistic that our concerns have been heard and will be addressed. Regardless, we continue to call, email, and video message with congressional offices and remain dedicated to providing relief for our industry.
A (Mostly) Non-COVID-19 Legislative Update
by Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations
I don’t know about you, but it seems no matter where I look, everything is about COVID-19. And with good reason — many of us are still working from home, helping their families with distance learning, and overall dealing with the effects of the virus. That being said, this week I wanted to take a look at two pieces of cannabis legislation — non-COVID related — and update you on where things stand, since we’re already nearly halfway through 2020!
The SAFE Banking Act
Last September, the SAFE Banking Act became the first piece of cannabis reform legislation to ever pass out of the United States House of Representatives by an astounding bipartisan vote of 321-103. The first iteration of the bill, named the Marijuana Businesses Access to Banking Act, was introduced to the 113th Congress back in 2013 and has made a long journey to get to this point in the legislative process.
Now that the SAFE Banking Act has passed the House, its journey has continued in the more conservative, Republican-controlled Senate. However, just before Christmas, Senate Banking Committee Chairman Mike Crapo (R-ID) issued a press release detailing his opposition to cannabis policy reform — including the SAFE Banking Act as it’s currently written. In the release, Chairman Crapo said,
“I remain firmly opposed to efforts to legalize marijuana on the federal level, and I am opposed to legalization in the State of Idaho. I also do not support the SAFE Banking Act that passed in the House of Representatives. Significant concerns remain that the SAFE Banking Act does not address the high-level potency of marijuana, marketing tactics to children, lack of research on marijuana’s effects, and the need to prevent bad actors and cartels from using the banks to disguise ill-gotten cash to launder money into the financial system.”
Even now with COVID-19, NCIA is virtually lobbying for the SAFE Banking Act, or some of its provisions, to be included in the next coronavirus relief package. Before COVID-19, the all-cash situation cannabis businesses face created an unnecessary public safety risk and undue safety burden on state and local tax and licensing authorities who must receive and process large cash payments. Now, as recent reports show that viruses can live on cash for up to 17 days, the public safety concerns of this cash-only system compound. The lack of access to financial institutions places industry workers, government employees, and the public-at-large at risk as banknotes circulate from consumers and patients to businesses to government.
NCIA is continually working with Sen. Crapo, congressional and committee staff, coalition partners, and the bill’s cosponsors to ensure that all parties have the materials and information that they need in order to solve this pressing public safety– and now, public health– issue and pass the SAFE Banking Act into law!
The MORE Act
In November, by a vote of 24-10, the House Judiciary Committee approved the Marijuana Opportunity Reinvestment and Expungement (MORE) Act of 2019, or H.R. 3884. This bill was introduced by House Judiciary Committee Chairman Jerrold Nadler (D-NY) and currently has 73 cosponsors. This was the first time that a congressional committee held a vote on – let alone approved – a comprehensive bill that would make cannabis legal. Perhaps even more significantly, this bill recognizes and works to address the disproportionate impact prohibition has had on marginalized communities and people of color while helping to increase access and opportunity in the legal cannabis industry.
The bill still has a long way to go, though. While the House Judiciary Committee has passed the legislation, there are still six more congressional committees with jurisdiction over the bill, including the Energy and Commerce, Agriculture, Education and Labor, Ways and Means, Natural Resources, and Oversight and Reform committees. In January, the House Small Business Committee waived its jurisdiction over the MORE Act.
While the MORE Act does not contain an explicit regulatory structure for cannabis after it is descheduled, Chairman Nadler said in a press conference the day before the markup vote that it was possible amendments could be added to the bill as it moves through the House.
All that being said, it’s unclear what Congress’ schedule will look like for the rest of the year. The Senate returned to Washington yesterday, however, the House remains out of session as concerns about legislating in the age of COVID-19 remain. On top of that, 2020 is an election year, which complicates matters (and scheduling) even more. Regardless, I hope you can rest assured knowing that NCIA’s government relations team is working around the clock to advocate for the cannabis industry — whether that be banking reform, ending cannabis criminalization, or allowing for SBA relief. From D.C. to wherever you are, stay healthy!
COVID-19 Cannabis Coalition In Action: Securing Financial Relief
By Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations
In the age of COVID19, advocacy, activism, and lobbying have had to adapt and mobilize quickly, as have all professions during this difficult time. Last week, NCIA along with a group of coalition members teamed up to write and send nearly 100 letters to governors, state treasurers, and cannabis industry regulators letters asking them to help secure financial relief that cannabis businesses are being denied by the federal government amid the coronavirus outbreak.
Our coalition sent two letters: the first was delivered to state treasurers and governors and asked that they speak to their congressional delegations about including a provision in the next COVID-19 legislative relief package that would make state-legal cannabis businesses eligible for Small Business Administration (SBA) assistance. As state officials, they know that these businesses are a legitimate part of the local economy and community, creating good-paying jobs and providing what have widely been deemed essential services to citizens.
The letter also asked that these officials consider creating a state-based lending or loan guarantee program for cannabis businesses; specifically, the creation of a program to fill the gap created by cannabis business ineligibility for the SBA’s Paycheck Protection Program and Economic Injury Disaster Loans. Those programs provide short-term liquidity to businesses and workers to assist with operating expenses, healthcare costs, paid sick leave, other benefits required under federal relief packages, and to help out with ensuring business continuity in the event of an economic disaster. That letter was signed by NCIA, Cannabis Trade Federation, Global Alliance for Cannabis Commerce, Marijuana Policy Project, Minority Cannabis Business Association, and National Cannabis Roundtable.
The second letter was sent to state regulators of medical cannabis programs in eleven different states. Our coalition asked that these states:
Deem medical cannabis businesses essential
Allow home delivery with online and phone ordering
Allow curbside pickup from existing dispensaries, with online ordering
Allow doctors to issue recommendations and renewals via telemedicine
Temporarily eliminate or reduce caregiver application fees
Honor medical cannabis documentation within 90 days of expiration
Temporarily amend existing regulations to ensure adequate staffing
NCIA was proud to work with the same coalition aforementioned, as well as Americans for Safe Access and NORML to send those letters.
It appears that our efforts are not going unnoticed, either– we have received word from at least one state treasurer’s office that they will draft and send a letter on the subject to their congressional delegation. Other states are attempting to set up Small Business COVID-19 Relief funds. The Massachusetts Cannabis Control Commission also voted unanimously last week to send a letter to the state’s congressional delegation asking them to include the cannabis industry in future federal coronavirus aid packages. Massachusetts is notably the only state with a legal adult-use market — which reached $420 million in sales last year — to disallow those dispensaries from operating during this time. A number of dispensaries have since sued Gov. Charlie Baker (R-MA) to reopen the adult-use market.
In Colorado, Governor Jared Polis (D) wrote a letter to Congressman Jared Crow (D-CO), who sits on the House Small Business Committee. He urged the Congressman to do everything in his power to help this industry, writing, “In an ideal world, Congress would include a provision in an upcoming bill guaranteeing that all state-legal cannabis businesses, direct and indirect, will be eligible for these loans. In the alternative, I hope that you can at least work with your colleagues to ensure that Indirect Marijuana Businesses will be eligible for the loans.” Governor Polis also noted that this ineligibility “could have a devastating effect on our business community and tens of thousands of employees.” If you are a Colorado resident, we encourage you to reach out to the Governor’s office and thank them for their support.
That’s not all NCIA is working on, though — we are virtually lobbying congressional offices day and night to ensure that the next COVID-19 package includes relief for businesses involved in the cannabis industry. We are receiving positive feedback and will continue to explore any and every avenue to help our member businesses during this time. Wherever you are reading this from, I hope you, your family, and your business associates are all safe and healthy. We are still fighting for you in Washington, D.C.!
by Madeline Grant, NCIA’s Government Relations Manager
“In fact, if we were able to have the Veterans Administration (VA) embrace medical cannabis, veterans would get better care because they could deal directly with their primary care physician, who is in the best position to give them appropriate advice. But sadly, the VA is caught with this federal restriction and they have a very narrow interpretation of what they can do, and how they can do it, and they simply do not permit their physicians to work with veterans to discuss and work with — let alone prescribe — medical cannabis.”
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