Andrew Kline joins NCIA to lead Public Policy and kicks off by establishing a coalition to influence FDA rule-making on CBD/Hemp
NCIA is pleased to announce that Andrew Kline has joined NCIA as Director of Public Policy. In this new role for NCIA, Andrew will lead our substantive public policy efforts, striving to prepare and protect the state-legal cannabis industry. He will also lead NCIA’s Policy Council, a group of NCIA members interested in influencing federal and state public policy.
Andrew’s first task is to lead a coalition of CBD/Hemp businesses to prepare public comments and testimony for the purpose of educating and influencing FDA rule-making. The work begins in earnest today. If you would like to join the coalition, please email Andrew ASAP at Andrew@thecannabisindustry.org.
Kline most recently served as President of the National Association of Cannabis Businesses (NACB), the first self-regulatory organization for the high-growth cannabis industry. At the NACB, Andrew led the creation of national standards for the state-legal cannabis industry, oversaw its standards governance board, and led day-to-day operations and strategic planning.
Kline has a deep and celebrated background in public policy, law enforcement, and coalition creation/management. He is renowned for his ability to create solutions to complex domestic and global public policy issues that appeal to both private and public constituencies.
Prior to joining the NACB, Kline was Special Counsel for the Federal Communications Commission’s (FCC) Enforcement Bureau where he was responsible for high-profile investigations and public policy negotiations affecting the telecommunications, internet, cable and satellite industries. He also served as Chief of Staff and Senior Advisor for Intellectual Property Enforcement in the Executive Office of the President [Obama] where he led public-private partnership and public policy efforts to address online trademark theft, copyright infringement, consumer safety, national security, and the protection of domestic business interests globally.
Kline previously worked an Executive in Residence at American University’s School of Public Affairs where he taught graduate-level courses in public policy and law. He also served as senior policy advisor to then-Senator Biden and Vice President Biden, and spent fourteen years as a federal prosecutor.
Mr. Kline is admitted to the California, Colorado and District of Columbia Bars, and holds an MPA from Harvard University’s Kennedy School of Government.
The Ending Federal Marijuana Prohibition Act and Marijuana Data Collection Act
Several new bills that support cannabis policy reform have been introduced in recent weeks. Last month, NCIA saw two bills reintroduced from last year, The Ending Federal Marijuana Prohibition Act and the Marijuana Data Collection Act, both of which received bipartisan support in the House of Representatives. In last year’s session, both bills had more than 30 co-sponsors each. The Ending Federal Marijuana Prohibition Act was first introduced in the House in 2011 in the 112th Congress.
This session’s pair of bills were introduced by Rep. Tulsi Gabbard (D-HI) and Rep. Don Young (R-AK).
The Ending Federal Marijuana Prohibition Act (H.R. 1588) would remove cannabis from the Controlled Substances Act and effectively allow states to determine their own cannabis policies and put an end to federal cannabis prosecutions. This is important for myriad reasons. First, it protects decisions that states have made to legalize marijuana, reflecting the will of the people and their elected representatives. Ending prohibition will also protect public safety by normalizing banking and other professional services. It will also save taxpayer monies by ending the “war on drugs” as it relates to federal enforcement of marijuana laws. Most significantly, it will allow important medical research to be conducted, free from fear of federal interference. NCIA is proud to include The Ending Federal Marijuana Prohibition Act in our priority legislation, and we look forward to working with members of Congress to build support for the bill.
The Marijuana Data Collection Act (H.R. 1587) would require the National Academy of Sciences to study and report on the status of state cannabis programs and their impact on public health, safety, and the economy. This is a critical first step in normalizing research into marijuana, including how state legalization has financially benefited states, how it has allowed for law enforcement to focus on more important public safety priorities, and how scientific research can benefit medicinal patients nationwide.
On March 7, a press conference hosted by NORML Executive Director Erik Altieri was held at the House Triangle of the U.S. Capitol to announce the bills. NCIA’s Government Relations team attended and captured photos of this historic announcement.
If you’re interested in lobbying in support of this bill, or any others, make sure you register for NCIA’s9th Annual Cannabis Industry Lobby Days in Washington, D.C. on May 21-23 so that you can tell congressional offices your personal story. There’s strength in numbers, and we can’t do it without you!
Today’s SAFE Banking Act Committee Markup
[updated 11:00 AM ET, Thu March 28]
Today, H.R. 1595, the Secure and Fair Enforcement (SAFE) Banking Act of 2019, received a markup by the House Financial Services Committee and passed in a vote of 45-15. This is the first time in history that a cannabis banking bill has reached this point in the legislative process. As a reminder,a markup is the process by which a congressional committee debates, amends, and rewrites proposed legislation.
Now that the bill has passed out of the House Financial Services Committee, it will continue in the legislative process and be sent to the House Judiciary Committee. It is unclear whether or not the Judiciary Committee will waive its rights to the legislation. If the Committee does waive its rights, the SAFE Banking Act will then be referred to the powerful House Rules Committee before receiving a floor vote from the full House.
If you remember, HR 1595: the Secure and Fair Enforcement (SAFE) Banking Actwas just introduced in the House of Representatives by Reps. Ed Perlmutter (D-CO) and Denny Heck (D-WA) less than two weeks ago. In a stunning, historic surprise, the legislation was introduced with a whopping 108 original cosponsors, and that number has already risen to 151.
There were multiple amendments agreed upon by the committee, however, most were technical and required minimal change. Of note, however, included an amendment from Rep. Ed Perlmutter which would add provisions requiring the federal government to track and issue recommendations on how to expand financial services to minority-owned and women-owned cannabis businesses. Rep. Katie Porter (D-CA) also introduced an amendment that would provide the same protections to de novo financial institutions, which was agreed to. In addition, one of the bill’s lead sponsors, Rep. Steve Stivers (R-OH) offered an amendment that would give much needed clarity for insurers that wish to provide financial services in states that have legalized cannabis.
As a refresher, the SAFE Banking Act would prevent federal banking regulators from punishing banks for working with cannabis related businesses that are obeying state laws or halting their services, taking action on loans made to those businesses, or limiting a depository institution’s access to the Deposit Insurance Fund. The bill would also protect ancillary businesses that work with the cannabis industry from being charged with money laundering and other financial crimes, and requires the Financial Institution Examination Council to develop guidance to help credit unions and banks understand how to lawfully serve cannabis businesses.
Interested in helping with these efforts? You can:
Call your representative and ask them to cosponsor HR 1595: the SAFE Banking Act. If they’re already a cosponsor, thank them for their support. You can find out how to contact your member of Congress and find some helpful tips here.
SAFE Banking Act To Receive Full Committee Mark-Up
Big news! The recently introduced Secure And Fair Enforcement (SAFE) Banking Act, will receive a full committee markup next Tuesday. A markup is the process by which a congressional committee debates, amends, and rewrites proposed legislation.
At the beginning of a markup, committee members first make opening statements. Then, the bill is read for amendment, one section at a time, with committee members offering their amendments to each section after it is read but before the next section is read. Committees do not change the texts of the bills they mark up. Instead, committees vote on amendments that their members want to recommend that the House adopt when the House considers the bill on the floor.
If you remember, HR 1595: the Secure and Fair Enforcement (SAFE) Banking Act was just introduced in the House of Representatives by Reps. Ed Perlmutter (D-CO) and Denny Heck (D-WA) less than two weeks ago. In a stunning, historic surprise, the legislation was introduced with a whopping 108 original cosponsors, and that number has already risen to 138.
As a refresher, the SAFE Banking Act would prevent federal banking regulators from punishing banks for working with cannabis related businesses that are obeying state laws or halting their services, taking action on loans made to those businesses, or limiting a depository institution’s access to the Deposit Insurance Fund. The bill would also protect ancillary businesses that work with the cannabis industry from being charged with money laundering and other financial crimes, and requires the Financial Institution Examination Council to develop guidance to help credit unions and banks understand how to lawfully serve cannabis businesses.
Draft legislation of the SAFE Banking Act received a historic hearing in the House Consumer Protection and Financial Institutions Subcommittee last month. NCIA submitted written testimony along with the personal stories about the burdens and safety concerns created by the current banking situation from nearly 100 cannabis industry professionals.
Interested in helping with these efforts? You can:
– Call your representative and ask them to cosponsor the HR 1595: the SAFE Banking Act. If they’re already a cosponsor, thank them for their support. You can find out how to contact your member of Congress and find some helpful tips here.
– Attend one of NCIA’s upcoming Cannabis Caucus events to get an in-depth federal policy update — register here.
There is little doubt that lack of access to banking is one of the most immense challenges facing cannabis retailers. Legally-operating cannabis businesses are at a significant disadvantage, as well as the communities they operate in. Luckily, there are positive signs that a new day is quickly approaching and cannabis banking laws in the United States are about to go through a major change.
What’s Going on with Cannabis Banking Laws?
Recently and for the first time, the U.S. Congress held hearings on the all-cash nature of the cannabis business. The bill at the center of these monumental hearings: the Secure and Fair Enforcement (SAFE) Banking Act, originally introduced in 2006 and has been stuck in a holding pattern, as have similar bills, ever since.
The committee heard testimony from cannabis industry stakeholders, police departments, and banking executives. These witnesses painted a robust picture of the cannabis banking problem, from the danger it poses to communities in the form of increased risk of armed robbery, to the burden it places on legal dispensary owners who have to find alternative cash management solutions, to the lack of accountability cash creates from a tax perspective.
The bill has yet to come up for a vote. While there are elected officials who reject the concept outright, there is an ever growing coalition in both houses of Congress pushing for a cannabis industry banking solution. More than ever, it seems the U.S. could finally see a loosening on federal restrictions to banking legal cannabis business.
4 Reasons why the U.S. will Loosen Cannabis Banking Regulations Soon
There is more political will for the legal cannabis industry than ever before.
While one hearing is far from passing the law, it is a sign that times are changing. Ten states have legalized recreational cannabis and 33 more have some form of medical cannabis laws in place; this is a drastic increase in the last decade. Shockingly in a time of so much partisan rancor, 62% of Americans favor legalizing marijuana. That is more than double the approval rating cannabis enjoyed in 2000 (31%).
The cannabis banking law being discussed is relatively innocuous. It does not legalize or reclassify cannabis at all, just allows banks to offer services to state-legal cannabis businesses. All in all, considering the strong support across party lines and the success of state industries, passing this law would be an easy win for Democrats, Republicans, and President Trump in a time when political wins are a rarity.
Current banking solutions are prohibitively expensive and states want to see their prosperous legal cannabis industry grow.
Credit unions and banks that currently offer cannabis industry banking charge prohibitively expensive fees, up to $2,000 a month for a simple business checking account. This is a problem for state elected officials.
Recreational and medicinal cannabis states seem, generally speaking, to enjoy the tax revenue they receive from this robust and rapidly growing industry. It is in the best interest of the state for legal cannabis businesses to thrive. If cannabis business owners can’t afford the currently available banking services, it hinders their ability to build upon their business. Even worse, these prohibitive fees keep dispensaries operating on an all cash basis, creating a much higher risk of robbery and violence in the community.
California’s behemoth market is drastically tipping the scales.
It is hard to overstate just how massive California’s legal cannabis market is. Expected to rake in over $50 billion by 2026, the influence this one state industry has is profound and its cash management problem will significantly magnify the problem.
The industry will continue to grow and mature, pushing out the gray market over time. As more cash comes flowing into the legal cannabis industry, it will begin to strain the cash supply and law enforcement to such a degree that action, more than it already is, will be imperative.
Money talks; state and federal governments want their tax revenue.
More than anything else, what will ultimately carry a cannabis banking law across the finish line is money. Cash-only businesses are fertile for tax fraud, simply pocket a little cash here and there and then never report it to the IRS. If there is one thing that can motivate an otherwise slow-moving government, it is tax revenue being left on the table. Allowing cannabis industry banking is a clear way to increases transparency and ensure the state and federal government get their share of the profits.
Access to banking will allow the rapidly growing cannabis industry to advance even faster. Will you be ready? Subscribe to our blog to stay up to date on the latest cannabis news, industry trends, and best practices for running your cannabis dispensary!
Gary Cohen leads Cova’s charge into the legal cannabis space by guiding the vision, strategic development, ‘go to market’ plans and culture.
Before joining Cova, Gary was a principal in over a dozen tech start-ups in the mobile communications industry ranging from small VC funded companies to Fortune 100 firms, including Onavo, which was later acquired by Facebook. In those companies he led sales, marketing, business analytics and market expansions. He has also held a multitude of leadership roles with Verizon and AT&T.
Gary holds a degree in finance with a master’s in marketing from the University of Colorado.
MCBA’s Model Municipal Social Equity Ordinance
Recently, NCIA’s Policy Council contributed toward a larger effort by the Minority Cannabis Business Association (MCBA) to create model social equity legislation for cities across the country. The legislation’s drafting committee started with the basic framework of the RESPECT Resolution introduced by Congresswoman Barbara Lee in 2018. The drafters also “borrowed liberally” from social equity ordinances in development in other cities such as Los Angeles, Oakland, San Francisco, and Sacramento, “attempting to improve upon these pioneering works with the benefit of hindsight.”
Khurshid Khoja, co-chair of the MCBA Policy Committee and Vice Chair of NCIA’s Board of Directors, led the drafting team. “The Model Ordinance is a statement from the communities we represent to the local lawmakers, regulators, entrepreneurs and other stakeholders who are building our nation’s cannabis industry one town at time – social equity is not only possible, it should be the industry standard moving forward. Our work gives those actors the tools they need to make equity a present reality in our industry rather than a lost opportunity.”
“We are grateful to have had the opportunity to assist the Minority Cannabis Business Association with crafting this important model ordinance,” said Aaron Smith, executive director of NCIA. “As we replace prohibition with regulated cannabis programs, it’s important that the communities most adversely impacted by the disastrous war on marijuana have access to the new economic opportunities of the post-prohibition era. Policymakers across the country should look to this model ordinance as the framework for ensuring that their local cannabis market is inclusive and reflective of the broader community.”
SAFE Banking Act Introduced in House of Representatives
Here at NCIA’s Washington, D.C. office, we’ve been alluding to this moment for quite awhile, and it’s finally happened!
Last week, HR 1595: the Secure and Fair Enforcement (SAFE) Banking Act was introduced in the House of Representatives by Reps. Ed Perlmutter (D-CO) and Denny Heck (D-WA). In a stunning, historic surprise, the legislation was introduced with a whopping 106 original cosponsors. That means that a quarter of the entire House of Representatives understands that the cannabis banking issue is untenable and must be addressed.
As a refresher, the SAFE Banking Act would prevent federal banking regulators from punishing banks for working with cannabis related businesses that are obeying state laws or halting their services, taking action on loans made to those businesses, or limiting a depository institution’s access to the Deposit Insurance Fund.
The bill would also protect ancillary businesses that work with the cannabis industry from being charged with money laundering and other financial crimes, and requires the Financial Institution Examination Council to develop guidance to help credit unions and banks understand how to lawfully serve cannabis businesses.
Draft legislation of the SAFE Banking Act received a historic hearing in the House Consumer Protection and Financial Institutions Subcommittee last month. NCIA submitted written testimony along with the personal stories about the burdens and safety concerns created by the current banking situation from nearly 100 cannabis industry professionals.
Now that the bill has been formally introduced, NCIA will continue to build support for the legislation by gathering additional cosponsors, and then pushing for a committee mark-up in the spring.
Interested in helping with these efforts? You can:
– Call your representative and ask them to cosponsor the HR 1595: the SAFE Banking Act. If they’re already a cosponsor, thank them for their support. You can find out how to contact your member of Congress and find some helpful tips here.
– Attend one of NCIA’s upcoming Cannabis Caucus events to get an in-depth federal policy update – register here.
New Bills: Marijuana Justice Act, REFER Act, and RESPECT Resolution
by Michelle Rutter, NCIA’s Government Relations Manager
Last week, multiple pieces of legislation and one resolution were introduced to address social equity, diversity, and fairness in the cannabis industry.
The Marijuana Justice Act was introduced in both the House and the Senate by Cannabis Caucus Co-Chair Rep. Barbara Lee (D-CA) and 2020 presidential-hopeful Sen. Cory Booker (D-NJ), respectively. Last session, the House version garnered 43 cosponsors, while the Senate had six in the last session. It is currently the most far-reaching and comprehensive cannabis policy reform legislation being considered in Congress.
The Marijuana Justice act would not only remove cannabis from the Controlled Substances Act schedule and eliminate federal criminal penalties for its possession, cultivation, manufacture, import, and export, but also includes several provisions to address the historically discriminatory enforcement of cannabis laws and sentencing. All federal cannabis use or possession convictions would be expunged under the measure, and a special grant program would be created through the Department of Housing and Urban Development to reinvest in communities that have been most impacted by prohibition. It would also allow Congress to withhold federal funds from states that exhibit racially disproportionate arrest and incarceration rates under their own cannabis laws.
In addition to this bicameral piece of legislation, Rep. Lee also introduced the Restraining Excessive Federal Enforcement & Regulations of Cannabis (REFER) Act in the House. The REFER Act “prohibits the use of funds made available by Congress to a federal department or agency” to intervene in state-legal cannabis programs or penalize financial institutions that service the cannabis industry.
Rep. Lee also introduced the Realizing Equitable & Sustainable Participation in Emerging Cannabis Trades (RESPECT) Resolution, which recognizes that the people most harmed by the racially disparate enforcement of prohibition benefit the least from some of the state and local policies regulating the cannabis market. The resolution urges officials and lawmakers to implement a series of practices when granting licenses for legal cannabis businesses to improve access for these communities to the nascent industry, such as minimal application and license fees, no caps on the number of licenses, increased local control of the licensing process, and removing broad felony and cannabis convictions as automatic disqualifiers for participation.
NCIA is proud to include the Marijuana Justice Act as one of our priority pieces of legislation, and we look forward to working with members of Congress to build support for the bill.
If you’re interested in lobbying in support of this bill, or any others, make sure you register for NCIA’s 9th Annual Cannabis Industry Lobby Days in Washington, D.C. on May 21-23 so that you can tell congressional offices your personal story. There’s strength in numbers, and we can’t do it without you!
The SAFE Banking Act: What To Expect
As our readers saw in last week’s blog, this month has been a milestone for cannabis banking reform.
Earlier this month, the Subcommittee on Consumer Protection and Financial Institutions held its first ever hearing on marijuana and financial services, entitled: Challenges and Solutions: Access to Banking Services for Cannabis-Related Businesses. Up for discussion was a new draft of the Secure and Fair Enforcement (SAFE) Banking Act, which is expected to be introduced any day. The bill is being sponsored by Reps. Ed Perlmutter (D-CO) and Denny Heck (D-WA) in the House, and by Sen. Jeff Merkley (D-OR) in the Senate. All of them have been longtime champions of this cause.
Watch this video for an update on the February 13 hearing:
Because cannabis remains illegal under the federal Controlled Substances Act, individuals who grow, possess, use, sell, transport, or distribute cannabis remain subject to federal criminal prosecution. Under current law, financial institutions providing banking services to legitimate and licensed cannabis businesses under state laws are subject to criminal prosecution under several federal statutes such as “aiding and abetting” and money laundering.
Regardless of whether they’re state or federally chartered, all banks are federally regulated (by FDIC, OCC or the Fed), and thus subject to these rules.
The SAFE Banking Act seeks to harmonize federal and state law by prohibiting federal banking regulators from:
Threatening or limiting a depository institutions’ access to the Deposit Insurance Fund
Discouraging, prohibiting, or penalizing depository institutions for servicing cannabis related businesses
Taking any action against a loan made to a covered business
Forcing a depository institution to halt providing any kind of banking services to state-legal cannabis related businesses
The bill has a few changes from last Congress, including:
Protections for ancillary businesses from money laundering and other laws
Changes the language addressing businesses in Indian Country.
Adds requirement that Financial Institution Examination Council develop guidance to help credit unions and banks understand how to lawfully serve cannabis businesses.
Adjusts the definition of “Cannabis-related legitimate business” to match up with the definition used in last session’s Senate language
Once the SAFE Banking Act is introduced, NCIA will begin gathering cosponsors from both sides of the aisle for the legislation, and will be working with the House Financial Services Committee and its members to advocate for a mark-up of the bill.
While NCIA is making change and advancing our issues every day, there’s still much work to do! Make sure to mark your calendars for our 9th Annual Cannabis Industry Lobby Days in Washington, D.C. on May 21-23 so that you can tell congressional offices your personal story. There’s strength in numbers, and we can’t do it without you!
VIDEO: Capitol Hill Update On Cannabis Banking Hearing In Congressional Committee
Every day, our Government Relations team is keeping our finger on the pulse of what’s happening on the Hill and how it affects our industry. In this case, we have important news from D.C. about movement to fix the banking crisis faced by cannabis industry operators.
Watch this video to learn more about the historic hearing that took place on February 13 in the Subcommittee on Consumer Protection and Financial Institutions. They held the first ever hearing on marijuana and financial services, entitled: Challenges and Solutions: Access to Banking Services for Cannabis-Related Businesses. Up for discussion was a new version of the Secure and Fair Enforcement (SAFE) Banking Act.
There’s no better way to stay informed and connected with what’s happening in federal policy than by being a member of NCIA – the largest and most influential national trade association representing the legal cannabis industry. We fight on your behalf year-round in the halls of Congress for our industry to be treated fairly like any other legitimate industry in this country.
Be sure to register in advance for our popular Cannabis Caucus event series – tickets are complimentary for NCIA members, and a limited number of non-member tickets are available. Join us throughout the month of March in Los Angeles, San Francisco, Denver, Lansing, and Philadelphia. For more information, visit our website.
And now is the time to start planning your trip to Washington, D.C. to join us on Capitol Hill! For the 9th year in a row, we’re hosting our Annual Cannabis Industry Lobby Days on May 21-23. This is your chance to walk the halls of Congress and make your voice heard about the unfair tax and banking policies that cripple our industry. This event is exclusively for current NCIA members, so if you’d like to join us for what NCIA members say is “the most important and exciting NCIA event of the year,” then now is the time to join NCIA at one of our three levels of membership, and then join us in May in our nation’s capitol.
If you’re already planning to join us, now is a perfect time to read up on our latest Policy Council report to learn more about priorities for our industry in the 116th Congress.
Show Me The Money! Banking Hearing Held In Congress Last Week
by Michelle Rutter, NCIA Government Relations Manager
A week ago today, the House Financial Services Committee made history.
On Wednesday, the Subcommittee on Consumer Protection and Financial Institutions held its first ever hearing on marijuana and financial services, entitled: Challenges and Solutions: Access to Banking Services for Cannabis-Related Businesses. Up for discussion was a new draft of the Secure and Fair Enforcement (SAFE) Banking Act, which is expected to be introduced at the end of the month by Reps. Ed Perlmutter (D-CO) and Denny Heck (D-WA) and Sen. Jeff Merkley (D-OR) in the House and Senate, respectively. Compared to last session’s SAFE Banking Act (H.R. 2215), the discussion draft of this session’s bill has some differences: it adds protections for ancillary businesses providing products or services to a cannabis-related legitimate business; specifies how businesses on tribal land could qualify; and requires the Federal Financial Institution Examination Council to develop guidance to help financial institutions lawfully serve cannabis-related legitimate businesses.
NCIA was proud to work closely with the offices leading the effort, members of the subcommittee, and witnesses leading up to this historic hearing. NCIA submitted written testimony that was introduced for the record by Congressman Ed Perlmutter (D-CO) during the hearing. In addition to submitting our own testimony, NCIA called upon its members to submit their own stories and tell us why the cannabis banking crisis needs to be fixed. By doing so, we were able to submit nearly 100 personal stories that are now a part of the congressional record. Congressman Perlmutter even read three of those testimonies aloud at the hearing!
According to the hearing documents, “An increasing number of financial institutions have expressed interest in providing banking services to state authorized cannabis-related businesses as nearly all states have authorized various degrees of cannabis use, such as for medical use. However, many financial institutions are refraining from offering banking services to these businesses based on several legal and compliance risks. Furthermore, public safety and other concerns have been expressed by stakeholders, including state and local government officials regarding cannabis-related businesses having difficulties accessing basic banking services, such as depositing large sums of cash from their business activity.”
Witnesses for the majority (Democrats) included :
Congressman Ed Perlmutter (D-CO)
Fiona Ma, California State Treasurer
Maj. Neill Franklin (Ret.), Baltimore City & Maryland State Police Departments and Executive Director, Law Enforcement Action Partnership (LEAP)
Rachel Pross, Chief Risk Officer, Maps Credit Union, on behalf of Credit Union National Association (CUNA)
Gregory S. Deckard, President, CEO and Chairman, State Bank Northwest, on behalf of Independent Community Bankers of America (ICBA)
Corey Barnette, Owner, District Growers Cultivation Center & Metropolitan Wellness Center
The minority (Republicans) invited Jonathan Talcott, partner at Nelson Mullins and board member of Smart Approaches to Marijuana (Project SAM) to speak at the hearing. Interestingly, in 2018, Nelson Mullins was paid $200,000 to lobby on behalf of cannabis company WeedMaps. The company has since found another firm to represent them.
This hearing was an historic and important first step in solving the cannabis banking crisis. In the coming months, we are hopeful that the House Financial Services Committee will hold an additional hearing and potentially even a mark-up on the SAFE Banking Act. You can also take a behind the scenes look at this video from the hearing day.
While NCIA is making change and advancing our issues every day, there’s still much work to do! Make sure to mark your calendars for our 9th Annual Cannabis Industry Lobby Days in Washington, D.C. on May 21-23 so that you can tell congressional offices your personal story. There’s strength in numbers, and we can’t do it without you!
VIDEO: NCIA Submits Testimony At U.S. House Committee On Financial Services
Last week, as NCIA wrapped up another successful Seed to Sale Show, we were vigilantly preparing for a historic hearing about the issue of cannabis banking and the SAFE Banking Act. This is an incredible milestone for our industry. If this bill passes, it would allow marijuana-related businesses in states with existing regulatory structures to access the banking system.
The Consumer Protection and Financial Institutions Subcommittee of the U.S. House Committee on Financial Services held this historic hearing about a draft bill that provides safe banking services for legal cannabis businesses. This was the first Committee hearing on stand-alone legislation that is a priority for our industry. Learn more about the hearing from NCIA’s Aaron Smith.
Read NCIA’s Executive Director and Co-Founder, Aaron Smith’s official testimony here.
To find out more about what NCIA is doing to support this bill and other legislative priorities, join us at a Cannabis Caucus event near you!
VIDEO: The Cannabis Industry’s Banking Crisis – Explained
The cannabis industry faces many hurdles along the path to federal legalization. One of the major obstacles faced by cultivators, processors, and dispensary owners is a lack of clear direction for financial institutions about how to provide banking services for those state-legal, licensed cannabis businesses. In this educational video, learn more about the federal banking crisis and the Congressional solution that can fix it.
Watch the First-Ever Congressional Hearing on Cannabis Banking
Many financial institutions are still hesitant to bank the legal cannabis industry due to fear of running afoul of federal money laundering laws. For years, many legal, compliant cannabis businesses have been forced to operate on an all-cash basis, causing a headache for regulators and a public safety risk for cannabis industry workers across the country.
Today, the Consumer Protection and Financial Institutions Subcommittee of the U.S. House Committee on Financial Services will hold a hearing about a draft bill that provides safe banking services for legal cannabis businesses. This is the first Committee hearing on stand-alone legislation that is a priority for our industry. The hearing, “Challenges and Solutions: Access to Banking Services for Cannabis-Related Business,” is scheduled for Wednesday, February 13 at 2:00pm ET.
Read NCIA’s Executive Director and Co-Founder, Aaron Smith’s official testimony here.
Share this video that explains the banking crisis in detail and tag your Congressional Representative. Use the hashtag #CannaBanking.
Connect with NCIA and your industry peers by registering for these upcoming Cannabis Caucus Events in March. Exclusively for NCIA Members and their guests, join us to learn about regional issues from influential guest speakers, and get the latest insider insights into NCIA’s federal policy work.
New Year, New Attorney General?
by Michelle Rutter, NCIA’s Government Relations Manager
Last month, the Senate Judiciary Committee began the confirmation hearing for William Barr, President Trump’s nominee for Attorney General. Barr served as Attorney General under President George H.W. Bush from 1991-1993 — a time when the War on Drugs was arguably at its peak. There was much concern that Barr’s position on cannabis would be reminiscent of the last Attorney General, Jeff Sessions, however, January’s hearings proved otherwise.
During the Senate confirmation hearing, Barr stated that he would respect state cannabis laws and legal businesses when it comes to enforcing federal marijuana statutes. In response to questioning from Sen. Cory Booker (D-NJ) and Sen. Kamala Harris (D-CA), Barr stated that if confirmed, his “approach to this would be not to upset settled expectations and the reliant interests that have arisen as a result of the Cole Memorandum.” Upon further questioning, he stated that he “is not going to go after companies that have relied on the Cole Memorandum.” (It’s also important to note that the two Senators who asked Barr about cannabis policy are both running for president).
Barr even put it in writing. In response to written questions, Barr wrote, “As discussed at my hearing, I do not intend to go after parties who have complied with state law in reliance on the Cole Memorandum… I have not closely considered or determined whether further administrative guidance would be appropriate following the Cole Memorandum and the January 2018 memorandum from Attorney General Sessions, or what such guidance might look like. If confirmed, I will give the matter careful consideration.” He also wrote to the committee, “I still believe that the legislative process, rather than administrative guidance, is ultimately the right way to resolve whether and how to legalize marijuana.”
The Cole Memo, issued in 2014, directed federal prosecutors not to use resources to target businesses or individuals that were in compliance with state cannabis laws and met a set of public safety criteria. That guidance, which gave many businesses and state governments the confidence to move forward with implementing regulated cannabis markets, was rescinded in January 2018 by then-Attorney General Jeff Sessions.
Several comprehensive cannabis policy reform bills that would allow states to determine their own laws without federal interference are expected to be considered this year. NCIA will continue to work with the Senate Judiciary Committee, Barr (should he be confirmed), and the Department of Justice on these critical issues.
New Bill: VA Medicinal Cannabis Research Act
by Michelle Rutter, NCIA’s Government Relations Manager
The 116th Congress just recently began, but there’s already been a flurry of new cannabis bills filed. Let’s take a look at this new piece of cannabis legislation that was introduced simultaneously in both chambers:
Bill: H.R. 493/S. 179: VA Medicinal Cannabis Research Act of 2019 Introduced by: Rep. Lou Correa (D-CA) and Sen. Jon Tester (D-MT) Additional cosponsors: Reps. Steve Cohen (D-TN), Don Young (R-AK), Dina Titus (D-NV), Matt Gaetz (R-FL), Eleanor Holmes Norton (D-DC), Salud Carbajal (D-CA), Peter DeFazio (D-OR), Katie Hill (D-CA), Janice Schakowsky (D-IL) and Sen. Dan Sullivan (R-AK)
What it does: This bipartisan, bicameral bill requires research into the safety and efficacy of medicinal cannabis usage on veterans diagnosed with PTSD and chronic pain. This legislation would:
Require VA to conduct a double-blind clinical trial with varying forms of cannabis on specified health outcomes of veterans with PTSD and veterans with chronic pain
Authorize a long-term observational study of participating veterans
Require the VA to preserve all data collected or used for the purposes of conducting future research related to medicinal cannabis
Require the VA to submit annual reports to Congress on the implementation of this bill for five years.
NCIA is proud to have endorsed this legislation for two congressional sessions.
Many more (possibly dozens!) of cannabis bills are expected to be filed in the next few months. NCIA will continue to track these pieces of legislation and endorse critical cannabis reforms on Capitol Hill.
Three New Bills In The 116th Congress
by Michelle Rutter, NCIA’s Government Relations Manager
The 116th Congress just began, but there’s already been a flurry of new cannabis bills filed. Let’s take a look at some of the first pieces of legislation to be filed in the House of Representatives on the topic:
Bill: H.R. 420: Regulate Marijuana Like Alcohol Act Introduced by: Congressman Earl Blumenauer (D-OR) What It Does: This bill was introduced in the 115th Congress by now-Governor Jared Polis (D-CO). Filed in the 116th Congress by Rep. Blumenauer, this bill would remove cannabis from the Controlled Substances Act entirely. It would also transfer cannabis enforcement authority from Drug Enforcement Administration to a renamed Bureau of Alcohol, Tobacco, Marijuana, Firearms and Explosives. Both shipping or transporting cannabis into states that have not legalized it would continue to be prohibited. Last year, the bill garnered 26 cosponsors.
Bill: H.R. 493: Sensible Enforcement of Cannabis Act Introduced by: Rep. Lou Correa (D-CA) Additional cosponsors: Reps. Steve Cohen (D-TN), Don Young (R-AK), Dina Titus (D-NV), Matt Gaetz (R-FL), Eleanor Holmes Norton (D-DC), Salud Carbajal (D-CA), Peter DeFazio (D-OR), Katie Hill (D-CA)
What it does: This bipartisan bill seeks to enshrine the now-rescinded Cole Memo into federal law. The legislation directs the Attorney General, in enforcing the provisions of the Controlled Substances Act relating to cannabis, to focus on certain enforcement priorities that were outlined in the Cole Memo, such as:
Distribution of marijuana to minors.
Revenue from the sale of marijuana from going to criminal enterprises, gangs, and cartels.
Diversion of marijuana from States where it is legal under State law in some form to other States.
State-authorized marijuana activity from being used as a cover or pretext for the trafficking of other illegal drugs or other illegal activity.
Violence and the use of firearms in the cultivation and distribution of marijuana.
Drugged driving and the exacerbation of other adverse public health consequences associated with marijuana use.
The growing of marijuana on public lands and the attendant public safety and environmental dangers posed by marijuana production on public lands.
Marijuana possession or use on Federal property.
This bill was previously introduced at the very end of the 115th Congress. NCIA is proud to have endorsed this legislation.
Bill: H.R. 127: Compassionate Access, Research Expansion, and Respect States (CARERS) Act of 2019 Introduced by: Rep. Steve Cohen (D-TN) Additional cosponsors: Reps. Don Young (R-AK) and Matt Gaetz (R-FL)
What it does: This bill would amend the Controlled Substances Act to state that regulatory controls and administrative, civil, and criminal penalties do not apply to a person who produces, possesses, distributes, dispenses, administers, tests, recommends, or delivers medical marijuana in compliance with state law. The bill also excludes “cannabidiol” (CBD) from the definition of “marijuana” and limits the concentration of delta-9-tetrahydrocannabinol (THC) in CBD to 0.3 percent on a dry weight basis. The bill also directs the Department of Health and Human Services (HHS) to terminate the Public Health Service’s interdisciplinary review process that is used to evaluate applications for medical marijuana research, opening up a multitude of research opportunities. The bill requires the DEA to license manufacturers and distributors of marijuana for medical research;, for HHS to register practitioners to conduct research, and for the Department of Veterans Affairs (VA) to authorize VA health care providers to provide recommendations and opinions to veterans regarding participation in their states’ cannabis programs.
Many more (possibly dozens!) of cannabis bills are expected to be filed in the next few months. NCIA will continue to track these pieces of legislation and endorse critical cannabis reforms on Capitol Hill.
The 116th Congress – What To Expect
by Michelle Rutter, NCIA Government Relations Manager
As the 116th Congress begins, the momentum behind cannabis reform has reached an unprecedented level. Let’s take a look at the top three things you can expect from cannabis legislation in the newest congressional session:
Successes in the House of Representatives, but an uphill climb in the Senate. The 116th Congress is the first time in eight years that Democrats have held control of the House of Representatives. As a result, it is expected that cannabis legislation will garner hearings, appropriations amendments will be expanded, and a bill could even be reach the Floor and be voted on! That being said, it’s important to remember that the Senate is still controlled by the more conservative Republican battle, and any cannabis amendments or legislation that reaches that chamber will have a very serious uphill battle prior to passage.
More cosponsors. In the 115th Congress, the House’s SAFE Banking Act (H.R. 2215) had a record breaking 95 cosponsors, while the Senate version (S. 1152) had 20. That’s nearly a quarter of the House of Representatives and a fifth of the entire Senate! Bills to reform IRC Section 280E saw a similar spike– at the end of 2016, the House’s Small Business Tax Equity Act had a mere 18 cosponsors, while the Senate version had four. At the end of December, the Small Business Tax Equity Act (H.R. 1810) has 46 cosponsors, while the Senate’s version (S. 777) has six. In the 116th Congress, you can expect these bills and others to continue to gather record-breaking numbers of cosponsors- in both the House and Senate.
New bills. There are cannabis bills that are introduced every session, like the banking bill, 280E bill, and various pieces of states’ rights legislation. In the 115th Congress, advocates saw multiple new cannabis bills get introduced, like the Marijuana Data Collection Act, the Marijuana Justice Act, and the MAPLE Act. As the 116th Congress continues, you can expect almost all of the cannabis related bills from last session to get reintroduced, but will likely also see a plethora of new legislation be filed that will address many different issues.
While the opportunities for cannabis reform are numerous, one thing is for sure: the 116th Congress will be one for the history books.
Join us on May 21-23, 2019 for NCIA’s 9th Annual Cannabis Industry Lobby Days in Washington, D.C., to make our voices heard on Capitol Hill! This event is complimentary and exclusive to NCIA members. Registration opens February 11.
Member Blog: Hemp & CBD Legalization, Regulation & Compliance – Key Language in the Farm Bill
Few developments in the world of cannabis — whether marijuana or hemp — could match the impact of the 2014 Farm Bill. But the 2018 Farm Bill, approved by the House and the Senate this week, promises to do just that.
As a quick reminder, the 2014 Farm Bill created an exception to the federal laws that prohibit the cultivation and sale of cannabis. To simplify, to the extent that a state created a pilot program to study hemp cultivation and the plants were of a sufficiently low level of THC, the resulting plant would be considered “Farm Bill hemp” and not subject to the prevailing federal prohibitions. To state the obvious, this was a very significant change. In fact, as a result of a combination of the magnitude of the change and the narrowness of the exception, apparent confusion led to periodic enforcement actions and court challenges.
As 2018 draws to a close, Congress must once again reauthorize the Farm Bill. It’s worth noting that the periodic reauthorization has nothing to do with hemp policy, and everything to do with the federal legislative process.
And the relatively narrow “exception” for hemp in the 2014 Farm Bill is on the cusp of significant expansion. Hemp, defined as cannabis plants and all their parts, extracts, “cannabinoids,” and derivatives with a THC concentration of less than 0.3%, will be subject to a regulatory scheme devised by the federal Department of Agriculture and will be removed from the federal Controlled Substances Act. States that wish to regulate hemp may propose regulations that the state “shall submit to the Secretary” of Agriculture. Notably, no state “shall prohibit the transportation or shipment of hemp or hemp products” produced in compliance with these new rules.
So, inquiring minds might wonder, what happens if 2018 Farm Bill hemp turns out to have a THC concentration of 0.31% instead of the permissible 0.3%? To the extent that higher THC concentration is the result of an honest mistake, Section 297B(e)(2) provides the answer: if the state has developed hemp regulations, and the state concludes the violation was the result of “negligence” (e.g., an unintentional oversight), the producer will be required to take corrective action. If that happens 3 times in a 5-year period, the producer will be ineligible to produce. If the state has not developed hemp regulations, the same standard will be applied by the federal Secretary of Agriculture pursuant to Section 297C(c)(2).
That is, a “negligent” mistake should not place the cultivator at risk of being placed outside of the protections of the Farm Bill (discussion of the reach of those federal laws is fascinating, but beyond the scope of this post). As a result, it will remain advisable for hemp cultivators to implement sufficient compliance efforts to avoid any potential inference that they are intentionally seeking a higher THC concentration.
Barring the unexpected, the 2018 Farm Bill will have a seismic impact on the hemp and hemp-derived CBD industry. With the nation watching, a smooth, well-regulated transition can only help to bolster calls for broader cannabis reform. As a result, once the 2018 Farm Bill becomes law, the industry will undoubtedly be paying close attention to the regulations promulgated by federal and state hemp regulators. And they will be working hard to demonstrate that they are staying within those guidelines.
Michael Cooper is the co-founder and managing member of MadisonJay Solutions LLC, a leading regulatory advisor to the adult-use cannabis industry that helps businesses understand the latest rules and build effective compliance infrastructure to address risk. He is the Vice Chair of the NCIA’s State Regulations Committee, and publishes and speaks frequently on cannabis regulation.
He is a graduate of Harvard College and Harvard Law School, and previously served as General Counsel of MHW, Ltd. and in the litigation department of Cravath, Swaine & Moore LLP. He began his legal career as a law clerk on the U.S. Court of Appeals for the Fifth Circuit. He can be reached at mcooper@madisonjaysolutions.com.
Top Five Memorable Marijuana Moments In 2018
by Michelle Rutter, NCIA Government Relations Manager
As 2018 draws to a close, our Government Relations team in Washington, D.C. is feeling especially thankful this year – both for all of our members, and for all of the strides forward that cannabis policy made this year! Before 2019 begins, let’s take a look back on marijuana’s top five most memorable moments of 2018:
Cannabis wins big at the ballot box
There’s no doubt about it: America experienced a green wave on election night as voters all over the country cast their votes in favor of reforming cannabis laws and electing candidates that share those values. Voters in Michigan cast their votes for the legalization of adult-use cannabis, increasing momentum of our movement. At the same time, voters in Missouri and Utah were successful in legalizing medical cannabis, becoming the 32nd and 33rd states to do so, and despite significant hurdles. In addition to the ballot initiatives that were passed, Democrats took control of the House of Representatives, while Republicans maintained their control of the Senate. While this development surely means that cannabis policy will progress further than ever in the House in 2019, it also means that anything passed through that chamber will face significant hurdles in the more conservative Senate.
Shake-up at the Department of Justice and the rescission of the Cole Memo
On January 4, then-Attorney General Jeff Sessions announced the Department of Justice’s decision to rescind the “Cole Memo” and two additional memos related to marijuana enforcement policy. These memos, issued in 2013 and 2014, helped to clarify the Department’s response to state-legal cannabis activity. The rescission of the memo has not resulted in any major change in enforcement policy, rather, this continues to be a matter of prosecutorial discretion. On November 6, the day after the midterm election, Jeff Sessions resigned as Attorney General at the President’s request.
Congressional banking and 280E bills gain record co-sponsorship
As the momentum for cannabis reform grows, so has the number of cosponsors on marijuana bills in Congress. Most notable is legislation that would provide safe harbor to financial institutions that choose to service the cannabis industry. At the end of the 114th Congress in 2016, the House’s Marijuana Businesses Access to Banking Act had 39 cosponsors, while the Senate version had just 10. As we finish the 115th Congress, the House’s SAFE Banking Act (H.R. 2215) has 95 cosponsors, while the Senate version (S. 1152) has 20. That’s nearly a quarter of the House of Representatives and a fifth of the entire Senate! Bills to reform IRC Section 280E have seen a similar spike. At the end of 2016, the House’s Small Business Tax Equity Act had a mere 18 cosponsors, while the Senate version had four. Today, the Small Business Tax Equity Act (H.R. 1810) has 46 cosponsors, while the Senate’s version (S. 777) has six.
Canada implements adult-use cannabis laws
In October, Canada’s laws making marijuana legal for adults went into effect and licensed retail stores opened throughout the country. This move made Canada the second country in the world, after Uruguay, to formally legalize the recreational use of the plant. Canada is the first G7 and G20 nation to do so. Federal prohibition has effectively locked American cannabis companies out of legitimate financial markets and, in doing so, has provided a significant advantage to publicly traded Canadian firms. Changes to federal law are needed to enable American small businesses to compete on the emerging multi-billion-dollar global cannabis market. Without legislative action, U.S. cannabis entrepreneurs will miss out on opportunities to develop innovative new products, attract global investment funding, and expand their reach to capitalize on expanding international business opportunities.
NCIA’s 8th Annual Cannabis Industry Lobby Days
This year, 225 cannabis industry professionals descended on Washington, D.C. to lobby congressional offices on some of the issues they and their businesses are facing. In total, NCIA members met with nearly 300 offices on Capitol Hill! The cannabis industry has seen exponential growth in the mainstream support for regulated cannabis markets from both sides of the political aisle. This progress is a direct result of the uncountable number of personal stories told by our members each year at our annual Lobby Days events in Washington, D.C., so don’t forget to mark your calendars for May 21-23, 2019, so that you can join us for our largest event yet!
The 116th Congress will arrive in Washington, D.C. in January. With the change in leadership in the House of Representatives and the momentum at our backs, 2019 is shaping up to be one of the cannabis industry’s best years yet. Our Government Relations team looks forward to all of the opportunities we will be faced with in the new year, and we wish you a very happy holiday season!
Allied Association Blog: Nevada County Cannabis Alliance Update
The Nevada County Cannabis Alliance is a trade association in California whose mission is to Advocate, Educate, and Connect. The Alliance advocates for reasonable local policies and a fair county ordinance. We believe in empowering community success through education, and connecting stakeholders with opportunities to participate and collaborate in the industry.
Nevada County has a renowned history of heritage cannabis cultivation that has played a crucial role in the community and economy over the past decades. Our community is well known for high quality, craft cannabis farming as well as for our unique quality of homesteading life. The Alliance seeks collaborations with organizations that value high quality, craft, California cannabis, grown by farmers with a unique history and story.
What issues are we working on?
Completing the comprehensive Environmental Impact Report necessary prior to the final completion of our local cannabis ordinance.
Providing essential education to the farmers throughout the regulatory transitions to assist with permitting and licensing.
Developing relationships with distributors and partners to bring our farmers to market.
Challenges
One challenge we face as a member based organization is maintaining and continuing to grow our membership numbers. The quintessential financial sustainability quagmire. Ever changing regulations and market uncertainty has caused reluctance from many small farmers. The Alliance works hard to reinvigorate and provide hope throughout the local cannabis community, but the reality is that there has been a decline in membership. Maintaining and continuing to grow our membership numbers, business sponsorships and financial stability is a constant need in order to continue working for a thriving cannabis industry for our region.
Another challenge is connecting our small- batch (10,000 sq ft farmers) into the supply chain with distributors who are interested in craft product.
What’s happening that’s important?
Ensuring that permitted local farms have access to the market via various distribution channels.
Decreasing barriers to entry for farmers within our local policy and ordinances. For example, local farmers are restricted to holding only 3 cultivation permits and local farmers also MUST have a permitted residence on the land to which they farm cannabis.
What advice or education do you have for others?
To counties that may still have complete cultivation bans, hang in there. Policy work is thankless, not pretty, and not why anyone began farming and living off of the land. Celebrate each and every small victory and step in the right direction, they truly add up. It is crucial for the greater community to support those that are willing to do the policy work and for there to be consistent representation with local officials. These relationships are everything, so continue to build bridges and nurture every community relationship. Nevada County worked its way out of a 2016 ban and we will be home to a thriving cannabis community and industry. It is important to organize and show strength in numbers.
VIDEO: The Benefits of Legalizing Cannabis
In this third installment of NCIA’s animated educational video series, we explore the benefits of legalizing cannabis nationwide and beyond. Learn how ending federal prohibition can improve public safety and add economic opportunities to our communities, and how you can help.
By Michelle Rutter, NCIA Government Relations Manager
As 2018 comes to an end, so does the 115th Congress. But, before the 116th Congress is sworn-in in January, an appropriations agreement must be reached before December 7, when the continuing resolution (CR) that is in place expires. That means if Congress doesn’t pass appropriations legislation by December 7, a partial government shutdown will occur.
Passing the bill in less than ten days will be an uphill battle. The President wants $5 billion appropriated towards a border wall and has threatened to veto the bill should it not include it. The Republican-controlled Senate has also asked for $1.6 billion worth of “pedestrian fencing” at the southern border. Should a shutdown occur, it will be the last chance for the President to win wall funding before Democrats take over the House majority in January.
There are a couple of different scenarios that could occur, but both bode well for cannabis advocates. First, Congress could pass another continuing resolution, which would include the current protections in place for medical cannabis patients, programs, and businesses. Alternatively, Congress could choose to pass an appropriations package that includes the Subcommittee on Commerce, Science, and Justice (CJS) bill, which also includes those same medical cannabis protections. Essentially, either way, medical cannabis protections remain in law.
This simple, one sentence appropriations amendment is the only thing standing in the way of the Department of Justice from prosecuting medical cannabis businesses and patients, and the process of getting it included into the federal appropriations bill every year can be incredibly difficult.
Moving into 2019, NCIA will continue to focus on ensuring that these protections remain in place, but also work to expand them to include adult-use cannabis businesses. In addition, NCIA will be using the appropriations process to advance other areas of cannabis policy, like curtailing the Treasury Department from prosecuting banks that choose to service the legal cannabis industry, and prohibiting the Department of Veterans Affairs from punishing veterans that choose to use cannabis in states where it’s legal.
All of these amendments will have good chances of passage in the Democratic-controlled House, but will face challenges in the Republican-controlled Senate.
Massachusetts Officially Joins The Legal Cannabis Market
Legal cannabis sales for adults 21 and over launched on Tuesday in Massachusetts, marking the first legal adult-use dispensaries to open on the East Coast! The first customers to purchase cannabis were two U.S. military veterans, including Northampton Mayor David Narkewicz.
Residents in the Bay State voted to legalize cannabis in 2016. While only two dispensaries are currently licensed and open for business, a slow rollout of additional licenses are expected to be fully realized over the coming years. The market in Massachusetts is expected to grow to over $1 billion by the year 2022, according to Arcview Market Research.
“Congratulations to Massachusetts for taking this important step toward implementing the rational cannabis policies supported by voters across the commonwealth,” stated NCIA executive director Aaron Smith in response to the launch of regulated sales. “It’s been a long time coming but we look forward to the development of a prosperous cannabis industry in the Bay State, as criminal markets are replaced by licensed businesses that create jobs and tax revenue while responsibly serving adult consumers safe cannabis products.”
In the densely populated Northeast region of the U.S., Massachusetts is setting the stage for nearby states to adopt similar cannabis policies.
Over 3,000 industry leaders looking to tap into the emerging East Coast markets will be attending NCIA’s 3rd Annual Seed to Sale Show coming up February 12-13, 2019 in Boston. Register before December 6 to save $400!
NCIA’s 2018 Post-Election Webinar
Watch this webinar recorded on Thursday, November 8, for NCIA’s recap of the midterm elections and what they mean for cannabis policy reform nationally.
Hear from representatives of the statewide cannabis campaigns in Michigan, Missouri, North Dakota, and Utah to find out what went right, what went wrong, and what happens next for regulators, businesses, and consumers. NCIA and the Marijuana Policy Project discussed the next states to watch and key federal legislation to follow in 2019.
Jeff Sessions Resigns
Yesterday, Attorney General Jeff Sessions submitted his resignation to President Trump, at the President’s request. His resignation marks the end of an era at the Justice Department under one of the most notable cannabis opponents Washington has ever seen.
During a hearing in 2016, then-Senator Sessions firmly stated that “good people don’t smoke marijuana.” After being appointed as Attorney General by President Trump, Sessions made the decision to rescind the Obama-era Cole Memo, which outlined eight enforcement priorities that largely allowed states to set their own cannabis policies without fear of federal interference.
NCIA looks forward to working with acting-Attorney General Matthew Whitaker and is actively working with our allies in the Senate to ensure that the need to protect the legal cannabis industry is front and center when the future nominee is considered by the chamber.
VIDEO: NCIA Election Night Watch Party
The NCIA team gathered last night for an Election Night Watch Party! Watch this short video to join the fun and hear from NCIA’s Executive Director, Aaron Smith, to learn more about the victories we gained through the power of democracy. Thanks to everyone who cast their ballots, and special congratulations to Michigan, Utah, and Missouri!
From The Ballot Box: Post-Midterm Election Analysis
by Michelle Rutter, NCIA Government Relations Manager
Last night, Americans all over the country let their voices be heard at the ballot box. Voters in Michigan cast their votes for the legalization of adult-use cannabis, increasing momentum of our movement. At the same time, voters in Missouri and Utah were successful in legalizing medical cannabis, becoming the 32nd and 33rd states to do so, and despite significant hurdles.
MICHIGAN
Appearing on the ballot as Proposal 1, this initiative passed by a whopping 55% and made Michigan the first state in the Midwest to legalize adult-use cannabis for those over the age of 21. The proposal outlined an excise sales tax of 10%, which will be levied on sales at retailers and micro-businesses, and then be allocated to local governments, K-12 education, and road and bridge maintenance. In the future, municipalities will be given the authority to to ban or limit cannabis businesses and establishments within their boundaries. Michigan’s prominent Midwest location, as well as the size of the projected adult-use market, make it a game-changing initiative to watch for cannabis reform. Michigan is the only adult-use state that also gave it’s electoral votes to President Trump in the 2016 election.
NORTH DAKOTA
In North Dakota, Measure 3, or the Marijuana Legalization and Automatic Expungement Initiative, appeared on the ballot and failed by only receiving 40% of the vote. This measure would have made cannabis legal in the state of North Dakota for people 21 years of age or older and, unlike other initiatives, also created an automatic expungement process for individuals with convictions for a controlled substance that has been legalized. Advocates and policy organizations were initially stunned when the campaign submitted enough signatures to appear on the ballot, and immediately recognized the importance of a staunchly, dependably conservative state choosing to legalize the adult-use of cannabis. Both of the candidates who ran for Senate in the state, Rep. Kevin Cramer (R) and Sen. Heidi Heitkamp (D) stated that they opposed the measure.
UTAH
In Utah, the Medical Marijuana Initiative (Proposition 2) appeared on the 2018 ballot and passed with 53% of the vote. This initiative legalized the medical use of marijuana for individuals with qualifying medical illnesses such as epilepsy, HIV, and and multiple sclerosis, among others. In October, the proponents and opponents of the measure, Mormon church leaders, and elected officials met to discuss the possibility of passing a medical cannabis law through the state legislature– regardless of the result for Proposition 2, which it was determined, would remain on the ballot. State lawmakers plan to hold a special session to work out details for how to make Utah the next medical cannabis state. Utah is a perfect example of a traditionally conservative state choosing to reform their cannabis laws to be more compassionate — Utah has given its electoral votes to Republican presidents in every election since 1968.
MISSOURI
In Missouri, three separate medical cannabis initiatives appeared on the ballot last night– including two proposed constitutional amendments and one statutory measure– with Amendment 2 triumphing with 65% of the vote. The other two medical cannabis initiatives failed. The winning Amendment 2, backed by New Approach Missouri, was favored by national advocacy groups such as NCIA, MPP, and NORML. The initiative legalized cannabis for medical purposes, creates a licensing system for cultivation, testing, and dispensing of medical cannabis and sets up a 4% tax on cannabis sales. State tax revenue garnered will be spent on healthcare services for veterans. Voters in Missouri also elected Josh Hawley (R) to replace sitting Sen. Claire McCaskill (D). Interestingly, Amendment 2 received over 300,000 more votes than Senator-elect Hawley — proving that cannabis is a winning issue across partisan lines.
OUTLOOK: 2019 AND THE 116TH CONGRESS
These stunning victories have implications in Washington, D.C. and set the stage for federal reform in the 116th Congress. In addition to the ballot initiatives that were passed last night, Democrats took control of the House of Representatives, while Republicans maintained their control of the Senate. While this development surely means that cannabis policy will progress further than ever in the House, it also means that anything passed through that chamber will face significant hurdles in the more conservative Senate.
HOUSE
This year’s midterm election was one of the most highly anticipated in modern American history.
Last night, the House of Representatives switched from a Republican majority to a Democratic majority: as of Wednesday morning, Democrats held 220 seats, while Republicans held 194.
Republican leadership in the House of Representatives over the last two years has blocked even popular reforms such as banking access from receiving hearings or votes. With a Democratic majority in the House of Representatives, cannabis legislation will likely move at an unprecedented rate. Because Democrats have traditionally been more friendly to cannabis reforms, there is the possibility that hearings will be held, bills will move through committees, and even possibly be voted on and passed on to the Senate.
Most, if not all, of last night’s House races will have implications for cannabis policy in the 116th Congress. Notable cannabis opponent and chairman of the powerful Rules Committee Pete Sessions was defeated in a stunning victory by Colin Allred, who has stated his clear support for medical cannabis. At the same time, cannabis advocates saw the loss of longtime cannabis champion Rep. Dana Rohrabacher (R-CA), marking the end of an era. While the loss of Rep. Rohrabacher will be felt by many, his challenger Harley Rouda has stated his unequivocal support for adult-use cannabis.
SENATE
As polls indicated prior to Election Day, Republicans maintained their control of the Senate, and in fact strengthened their majority. As of Wednesday morning, Republicans had gained two members in the Senate, holding a total of 51 seats, with three races still in play. While the Democrat-controlled House of Representatives may be able to move pro-cannabis amendments and legislation through that chamber, anything that moves on to the more conservative Senate will face significant hurdles.
One of the most closely watched Senate races in the country was in Nevada, where sitting Sen. Dean Heller (R) faced Rep. Jacky Rosen (D). While Sen. Heller has signaled his support for cannabis reform in the past, he currently does not co-sponsor any pro-cannabis legislation in the Senate. Rep. Rosen, however, is a co-sponsor of multiple bills in the House, including the SAFE Banking Act (H.R. 2215), the Small Business Tax Equity Act (H.R. 1810), and the STATES Act (H.R. 6043), among others. In addition, Rep. Rosen replied to an NCIA candidate survey and stated, “I was proud to support Nevada’s marijuana ballot initiative in 2016 and our state has already seen the positive impacts of this industry, including thousands of jobs and millions of dollars in tax revenue.”
With more on the line than ever before, political donations and investments in our industry are vital. NCIA’s political action committee (NCIA-PAC) is proud to have donated to 41 of the winning candidates on election night.
The 116th Congress will arrive in Washington, D.C. in January. With the change in leadership in the House of Representatives, cannabis policy and reforms will be able to advance in a way never seen before. At the same time, any pro-cannabis bills or amendments sent to the Senate will still face challenges, but as recent elections have proved, anything is possible.
Brought to you by NCIA’s Marketing and Advertising Committee, Social Justice Subcommittee
Lisa Jordan, Canna Advisors; Rudy Schreier, MMLG; and Carolyn Gerin, Cannawise
The objective of the Social Justice Subcommittee of NCIA’s Marketing and Advertising Committee is to ensure that the social justice work of addressing convictions, providing opportunities, and reinvesting in poor and minority communities that have been battered for decades by the “war on drugs” is not lost in the broader cannabis reform efforts. The Social Justice Subcommittee’s recent activities have been focused on the #StartsAtThePolls campaign, and bringing NCIA members and their staff this #StartsAtThePolls Voter Kit.
This simple Voter Kit was created to help voters prepare for the Election Day on November 6. It includes prep tips, resources, voter rights, and what to do/who to contact if they sense a violation (i.e.: can’t find their polling place, etc). #StartsAtThePolls is where it all begins. We all need to show up to vote as Americans and an industry. NCIA helps bring it all together in an organized fashion at the national level.
The Voter Kit is an excerpt from the recently published title ‘Road Map For Revolutionaries: Resistance, Activism, and Advocacy For All” written by authors Elisa Camahort Page (co-founder of BlogHer), Carolyn Gerin (Co-Founder, Cannawise), and Jamia Wilson (Executive Director, Feminist Press). This Voter Kit was created by the publicity team of Random House/Ten Speed Press with their permission for NCIA committees to use as a resource for NCIA members and their staff, and published with the endorsement of the Marketing and Advertising Committee, and Social Justice subcommittees.
by Lisa Jordan, VP of Marketing, Canna Advisors NCIA’s Marketing and Advertising Committee, Social Justice Subcommittee
As support for legalization continues to climb and speculation of “cannabis reform” at the federal level continues to swirl, one critical opportunity stands to be lost in the fray of voices and messages: Social Justice.
Cannabis reform, alone, stops short. The deeper work is addressing convictions, providing opportunities, and reinvesting in poor and minority communities that have been battered for decades by the “war on drugs.”
With focused attention, we can shape policies and legislation that expunge records, provide employment opportunities, and further offset the disproportionate effects on people and communities of color. Expungement of misdemeanor charges, alone, can mean the difference in getting a job or housing for residents of poor and minority communities across the country.
The objective of the Social Justice Subcommittee of NCIA’s Marketing and Advertising Committee is to make sure this opportunity maintains visibility and action and that cannabis reform doesn’t stop short.
#StartsAtThePolls
This level of policy change starts at the polls.
The November 6 elections are pivotal to voting in candidates who are not only in favor of cannabis reform, overall, but will also push forward with social justice initiatives.
3 Actions for Everyone
In these final days before the election, each person can take a few, mindful actions to make sure that social justice doesn’t get lost:
1. Register to Vote:
Some states allow voter registration until election day. Check your state’s deadlines here: https://www.headcount.org/deadlines-dates/
If you missed your state’s deadline for this year, go ahead and register now so you’ll be ready next time.
2. Know Your Candidates
Do your research to know where your state and federal level candidates stand on cannabis reform, overall, and on social justice issues.
It’s up to us to make sure this opportunity maintains visibility and action and that cannabis reform doesn’t stop short.
#StartsAtThePolls
Lisa Jordan leads the brand development and marketing strategy for Canna Advisors and provides expert guidance in these areas to clients. With proven success in emerging industries, Lisa’s work has won numerous awards including a Bronze Lion at the Cannes Lions International Festival of Creativity, national awards for predictive analytics, and local ADDYs. Lisa has spoken at cannabis industry conferences and was selected to serve on the NCIA’s Marketing and Advertising Committee and serves as Chair of the Social Justice Subcommittee.
Over time, Lisa hopes to make cannabis brands as mainstream and iconic as familiar, big brands. In her downtime, you will find Lisa on a hiking trail with her husband and four big mutts or finding any excuse to spend time at Red Rocks.
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During the Senate confirmation hearing, Barr stated that he would respect state cannabis laws and legal businesses when it comes to enforcing federal marijuana statutes. In response to questioning from Sen. Cory Booker (D-NJ) and Sen. Kamala Harris (D-CA), Barr stated that if confirmed, his “approach to this would be not to upset settled expectations and the reliant interests that have arisen as a result of the Cole Memorandum.” Upon further questioning, he stated that he “is not going to go after companies that have relied on the Cole Memorandum.” (It’s also important to note that the two Senators who asked Barr about cannabis policy are both running for president). 
One challenge we face as a member based organization is maintaining and continuing to grow our membership numbers. The quintessential financial sustainability quagmire. Ever changing regulations and market uncertainty has caused reluctance from many small farmers. The Alliance works hard to reinvigorate and provide hope throughout the local cannabis community, but the reality is that there has been a decline in membership. Maintaining and continuing to grow our membership numbers, business sponsorships and financial stability is a constant need in order to continue working for a thriving cannabis industry for our region. 
MICHIGAN
These stunning victories
Lisa Jordan leads the brand development and marketing strategy for