What Measure 3 does is rather simple. It removes marijuana from the list of Schedule 1 Substances, and as a result, legalizes it for personal consumption, use, distribution, and possession for all North Dakotans over the age of 21. Additionally, it seals previous records so long as they were of age, did not distribute to minors, and were non-violent. Lastly, it legalizes hemp for full-scale agricultural production, a crop which per bushel is worth 9 to 11 times that of wheat depending on the commodity prices, while taxing both marijuana and hemp at an effective rate of between 8-14% (depending on your local city sales tax).
So, what does this really mean for the average North Dakotan and their community?
1. Starting December 6, adults will no longer be torn away from their families for simple possession, breaking apart families and creating dependents on the state rather than contributors. College students will no longer risk losing their student loans or the ability to ever find employment for daring to go to a party with friends.
2. Starting December 6, thousands, if not tens of thousands suffering from PTSD, depression, anxiety, and other conditions not covered by our medical marijuana law will be able to get proven life-saving medicine. As it stands, North Dakota politicians have in altering the medical bill denied veterans the best medicine for their condition indefinitely.
3. Starting December 6, tax revenue will increase as many new entrepreneurs will open up businesses and serve their communities. The illegal market for marijuana will cease to exist as shady drug dealers are replaced by reputable members of your community, and they will all pay taxes according to the fiscal impacts report released by the state of North Dakota.
4. Starting December 6t, farmers will be able to actually plan to grow hemp in North Dakota, and for 2019 will have access to a cash crop which outperforms wheat 10:1, if they choose to grow marijuana itself, the benefits are potentially even greater. Based on Colorado wholesale prices, 1 acre of marijuana could provide a farmer with more revenue than 400 acres of corn.
5. Starting January 6, records of non-violent marijuana offenders who did not deal to children will be sealed. This means we can start to reintegrate people into a society that has legalized marijuana, and allow them greater opportunities to find employment, procure student loans, or even find basic housing. As it sits, 170,000+ records need to be sealed, which means for every 4 people in ND there is roughly 1 record for marijuana hurting someone in your community.
What this doesn’t mean:
1. DUI’s will not be legal. Attorneys Alicia Dearn (multi-time award winner licensed to practice federal law in all 50 states), Nicholas Sarwark (Former Deputy Public Defender of Colorado), and Jordan Parker agree: a fair reading of Measure 3 does not legalize DUI.
2. Smoking in schools or in public will not be legal. When vaping and e-cigarettes were made legal, public smoking bans were ruled to apply to them. Similarly, marijuana smoking in public will have the existing bans applied.
3.) Crime will not rise. In states that have legalized, crime has stayed consistently lower than pre-legalization, and in many cases has dropped slightly.
Last, but not least, we would like to dispute the fact that this is “the most liberal marijuana law.” Measure 3 has received support from some of the strongest conservative voices in the state including:
1.) Tony Gehrig (Fargo City Commissioner and staunch conservative)
2.) Rick Becker (District 7 State Legislator which is in Bismarck, Republican)
3.) The North Dakota Liberty PAC (which has endorsed multiple republican candidates)
4.) And countless everyday North Dakota Republicans
Thank you for voting YES on Measure 3 in North Dakota this November 6!
Appropriations and Cannabis (Part 2): Why It Matters
by Michelle Rutter, NCIA Government Relations Manager
Last week, we explained the appropriations process and detailed how Congress allocates federal funds (click here for a quick refresh). This week, we’ll take a look at how exactly cannabis fits into the equation, and why it matters.
By 2001, California, Oregon, Alaska, Washington, Maine, Hawaii, Nevada, and Colorado had all legalized medical cannabis. As is still the case, federal law and these medical cannabis laws contradicted one another, and as a result, one member of Congress decided that something had to be done. That congressman was Rep. Maurice Hinchey (D-NY), and he decided to use Congress’ “power of the purse,” or the appropriations process, to protect medical cannabis laws and patients.
Rep. Hinchey first introduced an amendment addressing these inconsistencies between state and federal cannabis laws in 2001, but withdrew it before it could be voted on. Just two years later, in 2003, Rep. Hinchey teamed up with Rep. Dana Rohrabacher (R-CA) to introduce what would simply become known as the “Hinchey-Rohrabacher amendment,” which prohibited the Department of Justice from using its federally appropriated funds to interfere with the implementation of state medical cannabis laws. The amendment failed when brought to the House floor for a vote by a margin of 152–273, and would continue to fail five more times over the next decade.
By 2014, the amendment was known as the “Rohrabacher-Farr amendment,” and was introduced in the House of Representatives by Rep. Rohrabacher and Rep. Sam Farr (D-CA). Finally, hard work and patience paid off: when brought to the House floor for a vote on May 30, 2014, the amendment passed by a 219–189 margin as an attachment to the Commerce, Justice, and Science Appropriations bill for fiscal year 2015. In the hyper-partisan times we live in, the amendment was lauded for being bipartisan and receiving the support of nearly 50 Republicans.
The amendment was then introduced in the Senate by Sens. Rand Paul (R-KY) and Cory Booker (D-NJ) just weeks later, but was not allowed a vote. In December, however, the amendment was inserted into the spending bill as part of final negotiations, and the bill was signed into law by President Obama on December 16, 2014.
Thankfully, that amendment remains in place today and continues to protect medical cannabis businesses, patients, and laws in the 31 states where it’s legal. It hasn’t been easy, though: appropriations bills must be negotiated and passed annually, so the amendment must be introduced year after year. Not only that, the appropriations process is riddled with legislative procedures and technicalities that have made the amendment’s passage a struggle in the Republican controlled Congress.
Since its initial passage in 2014, the amendment has been renamed multiple times, introduced by a member of the House Appropriations Committee, been introduced by the Senate Appropriations Committee Ranking Member, been included in nearly a dozen continuing resolutions, and been included in the original (unamended) text of the Senate’s version of the appropriations bill. Needless to say, the amendment has had quite a legislative journey in just four years! Despite all of that, however, the amendment has not received a House floor vote since 2015, and has never received one in the Senate.
Funding for fiscal year 2018 ends this Sunday, September 30. It is expected that the House of Representatives will vote this week on an appropriations package that would include yet another continuing resolution, likely beyond the midterm elections. This package, if passed, will include medical cannabis protections. If this appropriations package does not pass by September 30, the government will shut down, and medical cannabis businesses and patients will be left in limbo.
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 as you’ve read, the process of getting it included into the federal appropriations bill every year can be incredibly difficult. NCIA continues to focus on ensuring that these protections remain in place, but also works to expand them to include adult-use cannabis businesses. In addition, NCIA is trying to use 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. While the appropriations process is long, arduous, and incredibly technical, ensuring the inclusion of cannabis amendments is essential, imperative, and crucial.
The History of Appropriations
by Michelle Rutter, Government Relations Manager
Congress doesn’t spend much of their time on passing legislation, but one exception is how much time they spend on the nation’s annual spending bills. These bills, also commonly known as appropriations bills, are legislation in Congress that “appropriates,” or sets aside, federal funds to be divided between specific federal government departments, agencies, and programs.
Let’s take a look at the history of the appropriations process, and later, we’ll talk about how it all relates to cannabis.
Appropriations bills are one part of the larger federal budget and spending process. Congress’ ability to appropriate funds has its origin in the Constitution — Article I, section 9, clause 7 states that “No money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law…” The President still has the power to veto appropriations bills, however, they cannot choose which provisions to keep and which to delete — the Executive must either approve or disapprove of the entire bill.
Regular appropriations bills are passed annually, with the funding they provide covering one fiscal year. The fiscal year runs from October 1 to September 30 of the following year. For example, Fiscal Year 2019 (FY2019) will run from October 1, 2018, until September 30, 2019. Appropriations bills are created, amended, and passed initially by the House and Senate Committees on Appropriations, both of which have twelve matching subcommittees, each tasked with working on one of the twelve annual regular appropriations bills. Each of those twelve subcommittees deals with a different subject.
As Congress has become increasingly partisan, another type of appropriations bill, the continuing resolution (CR), has gotten much more popular. If a new fiscal year begins and Congress has not passed some — or all — of the regular appropriations bills, Congress can extend their funding authority from the previous year, with possible minor modifications, using a continuing resolution. Think of a CR as a “copy and paste” of the appropriations bill, with possibly a few other provisions added. If all twelve regular appropriations bills have been passed, a continuing resolution is unnecessary.
There are various points throughout the appropriations process where members of Congress may introduce amendments to the bill being considered. They may be introduced in committee by a member of either chamber’s Appropriations Committee, or they may be submitted to the powerful Rules Committee. In recent years, the Rules Committee has been overcome by partisanship and has essentially blocked the minority’s amendments. This has made it difficult for any topic that can even be considered as somewhat “controversial” to be addressed.
In next week’s installment, we’ll talk about how the appropriations process relates to cannabis policy and how NCIA has moved the dial in recent years. Stay tuned!
New Bill: The Veterans Medical Marijuana Safe Harbor Act
In the 115th Congress, there are more cannabis reform bills than ever before — dozens, as a matter of fact! Let’s take a closer look at one of the newest reform bills that was just introduced today!
Bill: The Veterans Medical Marijuana Safe Harbor Act
Introduced by: Senator Brian Schatz (D-HI) and Senator Bill Nelson (D-FL)
What It Does: This bill would create federal, safe harbor protection for veterans and their doctors when using or recommending medical cannabis in states where it is legal. In order to provide our nation’s veterans immediate relief from opioid abuse, the bill directs the Department of Veterans Affairs to conduct research on the effects of medical marijuana on veterans in pain, and to research the relationship between state-sanctioned medical cannabis programs and any reduction in opioid abuse among veterans.
Endorsements: National Cannabis Industry Association, American Academy of Pain Medicine, Veterans Cannabis Coalition, Veterans Cannabis Project, Veterans for Medical Cannabis Access, Americans for Safe Access, NORML, and Marijuana Policy Project.
What To Expect: Now that the bill has been introduced, NCIA will continue to gather cosponsors for the legislation, as well as advocate for a hearing. With midterm elections fast approaching in November (register here), timing will be of the essence.
Campaign Update From Michigan’s Coalition To Regulate Marijuana Like Alcohol
NCIA recently spoke with two key figures in the state of Michigan to get an update from the boots on the ground about the efforts to legalize cannabis for adults this year. Mark Passerini is the founder of a medical dispensary based in Ann Arbor, Om of Medicine, and was also recently elected to serve on NCIA’s Board of Directors. Josh Hovey is the spokesperson for Michigan’s Coalition to Regulate Marijuana Like Alcohol.
Mark, how will adult-use legalization in Michigan affect your business and your community?
For the past eight years, we attempted to make all our decisions from the experience and perspective of a new patient that has never used cannabis previously. This translates to individual consultation rooms so patients may feel free to discuss their medical conditions, symptoms, and concerns in a private space rather than standing shoulder to shoulder at a retail counter.
We believe that when legalization is passed there will be many adults that may want to try cannabis but won’t know where to start, may be afraid, or unsure of the options and our unique consultation process may help them as much as it has helped our medical patients make the best choices for their health and their life. When cannabis is legalized, we plan to continue serving as a resource and education hub with a focus on scientific research.
What are the positive impacts of legalization in Michigan?
Positive change starts with one individual who shares with another who in turn shares with another and so on. Our communities have garnered a better understanding of cannabis, its history, medicinal use, and are actively rejecting the failed policies surrounding its use.
Locking people up for growing or consuming a plant is simply not the best use of critical and limited tax dollars. Many municipalities and states across the country have recognized this fact and passed decriminalization ordinances in order to use law enforcement resources on serious crimes. Communities and states that embraced legalization have also witnessed economic development through the creation of new jobs and much needed tax revenues.
Our research with the University of Michigan showed a 64% decrease in opioid use amongst patient participants. Continued research into the medical efficacy of cannabis will benefit not only the existing patient base, but the community at large.
By creating a whole new type of industry that operates in a responsible way and holds itself accountable to its community, everyone benefits.
Josh, how have you achieved success so far in the Coalition’s Michigan campaign?
True success will come when we pass legalization in November, but we’ve achieved some significant milestones. The first was creating a unified coalition of cannabis reform and social justice advocates to develop ballot language that borrows from the best practices used by the states that have legalized before us as well as Michigan’s medical marijuana licensing law. We also collected more than 360,000 signatures to place the issue on the November ballot. We’re proud of what we achieved so far, but the “vote yes” campaign has only just begun and there a lot more to do to make sure our initiative passes.
What do the prospects look like for the initiative passing this November?
Multiple opinion polls have shown that 60 percent of Michigan voters want to end cannabis prohibition and create a legalized and regulated system, so that’s a very strong starting position as we head into the campaign season. However, we know we can’t just rely on polls and we know the prohibitionists will continue to spread “Reefer Madness” era misinformation about the initiative.
That’s why we’re working hard to raise every dollar we can to make sure we can get the facts to voters across the state. We want to make sure voters know Michigan is wasting millions of taxpayer dollars on the failed policy of prohibition and that creating a legal and well-regulated marijuana market can raise hundreds of millions for three of our state’s most underfunded areas: roads, schools, and local governments.
Anything specific we should know about the program?
Full details of the proposal are available on our website at www.RegulateMI.org. But in short, our initiative learns from the best practices from other states that have gone before us while also borrowing licensing language established under Michigan’s Medical Marijuana Facilities Licensing Act. That law was passed with bipartisan support in 2016 and the first medical marijuana businesses are just starting to be licensed under that program. We believe our very reasonable and well-thought out business regulations combined with sensible personal possession limits will make Michigan’s adult-use law the new model for the country.
What is needed to ensure Michigan passes adult-use legalization?
We need people to get out and vote, plain and simple. Beyond that, there are a few other things people can do to support the campaign:
Make sure your friends and family are registered to vote and, of course, make sure they VOTE YES in November.
Share the facts about the initiative and about the need for legalization on your personable social media pages. You can find the campaign has pages set up on Facebook, Twitter and Instagram.
Don’t allow prohibitionist misinformation to spread. Correct your friends and family (politely) by giving them the facts on the issue.
Donate to the campaign at RegulateMI.org/donate. We need to get our message out every way possible, including television, mail and social media. All of those things costs money and we can’t win without your support.
The Michigan Coalition to Regulate Marijuana Like Alcohol will host a fundraiser on October 17, 2018 in Ann Arbor, MI. For more information, please contact Robin Schneider, Finance Director.
Phone: 517-974-2265
Email: Robin@RegulateMI.org
Hemp: One of the Nation’s Oldest, and Now Newest, Agricultural Commodities
by Michelle Rutter, NCIA’s Government Relations Manager
HISTORY
Farming and agriculture has long been a part of North American history. When the Great Depression hit in the 1930’s, both President Franklin Delano Roosevelt and Congress knew that the United States would struggle until the agriculture industry became prosperous again. As a result, many New Deal programs dealt with farming, but arguably the most notable agriculture related legislation was the Agricultural Adjustment Act of 1938, which was the first version of what we know today as simply the “Farm Bill” that is updated roughly every five years.
TODAY
In 2018, a new Farm Bill was introduced with a price tag upwards of $800 billion. One of the most notable provisions in this year’s bill was led by Senate Majority Leader Mitch McConnell (R-KY): hemp legalization. Industrial hemp refers to the cannabis plant with less than 0.3 percent THC content and would include CBD medicinal products — so long as it contains less than 0.3 percent THC and is derived from industrial hemp.
While leadership in the House of Representatives blocked the hemp provision in its version of the bill, the Senate’s version of the bill that passed overwhelmingly in June does include it. That means that when the bill goes to conference in early September, that hemp legalization will be debated. Considering that the Senate Majority Leader is championing this provision, it stands a good chance at being included, though nothing is guaranteed.
Marijuana’s “cousin,” hemp, is generally barred because it is part of the cannabis plant, despite the fact that it contains little of that drug’s key psychoactive ingredient, THC. In 2014, Sen. McConnell secured a hemp pilot program in that year’s farm bill. Since then, at least 35 states have taken up the offer and developed industrial hemp programs, and those states will be eligible to pursue a legal, regulated market if the 2018 Farm Bill is passed with the hemp provision included.
If passed, the Farm Bill would legalize hemp as an agricultural commodity by removing it from the federal list of controlled substances and giving states the opportunity to be the primary regulators of hemp production. In addition to removing hemp from the federal controlled substance list, the Senate farm bill would allow industrial hemp to be eligible for crop insurance, a perk already enjoyed by other, more traditional crops. The bill would also reauthorize commodity, trade, agricultural research, rural development, and food and nutrition programs. Under current law, authorizations will expire September 30 or the end of the applicable crop year.
The first farm bill conference committee meeting has been set for September 5, 2018. The conferees from the House and Senate will try to iron out differences between their two bills in the panel. Included in the discussions will be 47 members of the House of Representatives and nine Senators. The results of this could mean a new era for the agricultural industry if hemp returns to American farmlands.
Committee Blog: California Regulations Public Comment Period Nears Close – Act Now!
Do you have views on the regulations that will govern California’s cannabis industry? If so, California’s window for the public to make comments on the proposed permanent industry regulations is about to draw to a close. But you don’t need to be an expert on arcane administrative procedure or even a lawyer to participate in the comment period. Keep reading to learn more about what is at stake and how to make sure your voice is heard.
Overview and Introduction to the Regulatory Process
On Friday, July 13, 2018, California’s three cannabis licensing agencies (the Bureau of Cannabis Control, or “BCC”; the Department of Food and Agriculture, or “CDFA”; and the Department of Public Health, or “CDPH”) released their much-anticipated proposed permanent regulations for cannabis businesses pursuant to the Medicinal and Adult Use Cannabis Regulation and Safety Act. This began the 45-day public comment period of the regular rule-making process. During this time, the public has a chance to review and comment on the proposed regulations, and the agencies must consider these comments and may make changes based on this feedback.
Below are links to the proposed regulations and the summary sheets released by the agencies:
Currently, cannabis businesses in California are operating under emergency regulations that were originally adopted in December 2017 and re-adopted (with a few changes) in June 2018. The emergency regulations will stay in effect until the regular rule-making process is complete and the final regulations have been formally adopted at the end of this year.
In addition to publishing the proposed regulations, the agencies also each published a Notice of Proposed Rulemaking Action (NPRM), which contains various information about the proposed rules such as a summary of existing law and who to contact with questions and comments. The agencies were also each required to publish an Initial Statement of Reasons (ISOR), which contains the agencies’ reasoning and basis behind why they crafted a rule the way they did.
These regulations will have a number of impacts on how the cannabis industry operates in California. For example, new advertising regulations would go into effect; packaging and labeling requirements would change; certain edible products could contain up to 500mg THC per package (versus the current limit of 100mg THC per package); and outdoor licensees would be prohibited from using light deprivation.
Those are just a few of the key proposed changes. Please refer to the summary sheets published by the agencies, listed above, for a more comprehensive list.
What Makes an Effective Public Comment?
There are six standards in the Administrative Procedures Act (APA) that agencies including the BCC, CDPH and CDFA must follow when conducting rulemaking actions. They are:
Authority – The agency must be permitted or obligated by law to craft a particular regulation. (Gov. Code § 11349(b))
Reference – The agency must refer to the provision of law that the agency is implementing or interpreting via the regulation. (Gov. Code § 11349(e))
Consistency – The regulation cannot be inconsistent with other laws and/or regulations, and needs to be harmonious with existing provisions of law. (Gov. Code § 11349(d))
Clarity – The regulation must be easily displayed or written so that it will be easily understood by the people affected. (Gov. Code § 11349(c))
Nonduplication – The regulation cannot serve the same purpose as another existing state or federal law or regulation. (Gov. Code § 11349(f))
Necessity – There must be substantial evidence in the record for needing the regulation in order to fulfil the purpose of the statute or other provision of law that the regulation implements or interprets. (Gov. Code § 11349(a))
Since the BCC, CDFA and CDPH have to comply with the standards above, it’s a good idea to focus your comments around one or more of those specific areas, as opposed to just making a comment that you dislike a particular proposed regulation without giving any reason why. That way, it is more likely that the agency will respond to your comment by making an adjustment to the proposed regulation(s) in question.
How to Submit Your Comments
Comments on the proposed regulations can be submitted to the agencies by mail or email, or offered in-person at one of the agencies’ scheduled public hearings. Your comment must include the following: (1) the subject title of the proposed regulation; and (2) specific concerns regarding the proposed regulation, which the agencies deem most helpful if they identify the section number in question, discuss the issue, suggest changes to the text, and explain why any desired modifications address the issue.
Please note that all comments received during the public comment process become part of the official record which is public information. Thus, you may not want to include any confidential or identifying information in your comments.
All comments must be submitted to the respective agencies by 5:00pm on August 27, 2018 or provided at one of the scheduled public hearings. Below are the locations of the public hearings, which will take place throughout the state during the months of July and August. (This information is subject to change; please check for updates on the California Cannabis Portal.)
Bureau of Cannabis Control Hearing Dates and Locations
The first two BCC public hearings have passed. There will be a final public hearing on August 27, 2018 from 10:00 a.m. to 12:00 p.m. at the Tsakopoulos Library Galleria, 828 I Street, Sacramento, CA, 95814.
California Department of Public Health Hearing Dates and Locations
The first two CDPH public hearings have passed. There will be a final public hearing on August 27, 2018 at 10:00 a.m. at 8400 Edes Avenue, Oakland, CA, 94621.
California Department of Food & Agriculture Hearing Dates and Locations
The first three CDFA public hearings have passed. There will be a final public hearing on August 28, 2018 from 1:00 p.m. to 3:00 p.m. at the California Department of Food & Agriculture Auditorium, 1220 N Street, Sacramento, CA, 95814.
Some Final Words
Collaborate. Join with other groups, trade associations, brain trusts, friends. Have reading groups. Get together and consider problems and solutions from multiple points along the supply chain, so that the solutions you offer can be relevant, functional, and comprehensive. There are many smart people working on this right now, so if you don’t have the time to this by yourself, link up with a trusted group that is commenting in accordance with your interest. Comment letters signed on by many stakeholders are very powerful.
Most importantly, “Keep Calm and Carry On!” Even though operators may see major changes being contemplated in these regulations, these are NOT YET IN EFFECT. Operators still need to remain compliant with the EMERGENCY regulations that are currently in effect, until the final regulations – post comment period – are officially adopted. This draft can and will change, so folks shouldn’t be making major business decisions based on the draft, as elements may either fall away, shift, or be added. (Think about the 24-hour security guard requirement in the Readopted Emergency Regs – it came and went within a 5-day comment period.) There are items in this draft that are sure to receive a LOT of comments and suggestions, so keep calm and carry on following the emergency regulations during this comment period.
Finally, even for operators outside of California, this process is nevertheless important to watch as the path that California takes will impact how the rest of the country chooses to regulate the cannabis industry, and it is also important to participate in if you plan to expand into the Golden State.
NCIA’s member-led State Regulations Committee (SRC) examines and reviews the varying cannabis industry-specific statewide regulations and works to establish best practices or guidelines for states and municipalities to facilitate the development of regulations and compliance procedures.
New Bill: The Clean Slate Act
In the 115th Congress, there are more cannabis reform bills than ever before — dozens, as a matter of fact! Let’s take a closer look at one of the newest reform bills that was just introduced last week.
Bill: The Clean Slate Act
Introduced by: Congresswoman Lisa Blunt Rochester (D-DE)
Original Cosponsors: Reps. Dwight Evans (D-PA), Gwen Moore (D-WI), Bobby Rush (D-IL), Sheila Jackson Lee (D-TX), Barbara Lee (D-CA), Robin Kelly (D-IL), Danny Davis (D-IL), Lacy Clay (D-MO), David Scott (D-GA), Al Green (D-TX), Frederica Wilson (D-FL), Eddie Bernice Jackson (D-TX), Hakeem Jeffries (D-NY), Yvette Clark (D-NY), Anthony Brown (D-MD), Brenda Lawrence (D-MI), Andre Carson (D-IN), Marcia Fudge (D-OH), Eleanor Holmes Norton (D-DC), and Donald Payne Jr (D-NJ)
What It Does: This bill gives an order to the court to be carried out at the time of sentencing. At that time, the court will enter an order that each criminal record that either relates to Section 404 of the Controlled Substances Act or any Federal, non-violent offense involving marijuana shall be sealed automatically one year after the individual fulfills their sentence. That means that exactly one year after someone has “done their time” or fulfilled the expectations laid out in their sentencing, that their record is automatically expunged of the crime. According to the ACLU, 52% of all drug arrests are for marijuana. Not only that, but of the 8.2 million marijuana arrests between 2001 and 2010, 88% were for simply having marijuana. Combine that with the fact that despite roughly equal usage rates, African-Americans are 3.73 times more likely than their white counterparts to be arrested for marijuana and you have a recipe for disaster. For all of those reasons, the Clean Slate Act is long overdue and should be enacted.
What To Expect: Now that the bill has been introduced, NCIA will continue to gather cosponsors for the legislation, as well as advocate for a hearing. With the House of Representatives currently away for August recess and midterm elections in November (register to vote here), timing will be of the essence.
NCIA Launches Petition Urging Facebook to End Censorship of Cannabis Businesses and Speech
This week, NCIA launched a Change.org petition to pressure Facebook to commit to making sure that the censorship experienced on their site by cannabis businesses, legalization advocates, news sites, and government regulatory agencies ceases, and we need your help.
Facebook has a history of actions and policies that negatively impact state-licensed cannabis businesses and policy reform advocates, even as the majority of U.S. states have legally regulated cannabis for medical or adult use through laws that continue to enjoy wide public support.
NCIA has received numerous reports from our members about their attempts to share information or advertise on Facebook being rejected and their pages being suspended. We have also experienced these discriminatory measures first-hand on our own account. In addition, Facebook has been “shadow banning” cannabis-related groups and pages by blocking them from search results. As the national trade association for the industry, we refuse to stay silent while our members and allies are subjected to unfair censorship.
We will provide updates as they happen, and please feel free to share your Facebook censorship stories with Media@TheCannabisIndustry.org.
Allied Association Blog: New Approach Missouri Initiative Update
The state of Missouri is about to have a medical cannabis program. In November, no less than 3 measures will be present on the ballot, plus 2 constitutional amendments, as well as a statutory measure. This is an unprecedented occurrence in the history of marijuana law reform.
The New Approach Missouri initiative will be listed first on the ballot. Missouri Cannabis Industry Association has long been a proponent of the grass-roots New Approach Missouri (NAM) campaign, which turned in more than double the number of signatures required to make the ballot. Many of those signatures were collected by the more than 400 amazing volunteers from all across the state.
Missouri is traditionally considered a conservative state, but the urban areas of St. Louis on the eastern side and Kansas City on the western side of the state, are both home to very progressive communities who have made their own strides in local marijuana law reform independent of the state. Kansas City has completely decriminalized up to 35 grams and St. Louis has reduced possession to a $25 fine, with plans in the works for a more aggressive legalization effort in 2019. The legislators of the state may not be ready for legalization, but the people definitely are and they will make their voices clear at the ballot box.
Currently there is only a ridiculously restrictive program which consists of a recommendation for CBD only (must be less than .03% THC), with the single qualifying condition of intractable epilepsy. In addition, the recommendation has to be written by a neurologist. The two licensed facilities, BeLeaf and Noah’s Arc, are each vertically integrated and share barely more than 100 patients between them.
The New Approach Missouri campaign is poised to deliver the framework for a robust and profitable cannabis industry for the estimated 200,000 – 300,000 patients expected by the end of year three. Minimum numbers of cultivation, extraction/infusion and dispensary licenses based on the population (currently 6,000,000 residents) will provide for expansion of the program over time, as the population increases. From the onset, the initiative provides for 60 cultivation, 86 extraction/infusion, and 192 dispensary licenses. The program will be regulated through the Department of Health and Senior Services. The initiative is largely modeled after Colorado, but with some modifications based on the lessons learned from experience.
Recently in San Jose at the NCIA Cannabis Business Summit and Expo, NCIA, MCIA and New Approach Missouri collaborated on a fundraising event sponsored by Simplifya and CannaRegs. Veteran’s advocate, Tom Mundell and Campaign Manager, John Payne from New Approach Missouri talked about what it will mean for Missourians to have access to legal medical cannabis, the status of the campaign and the industry outlook should New Approach win in November. NCIA Executive Director Aaron Smith urged attendees of the fundraising event to do what they could to help. In total, $17,500 in pledges were made to New Approach Missouri. The opportunity that will be available in Missouri if NAM wins is worth investing in.
In addition to fundraising for the legalization campaign, MCIA has set out to provide educational opportunities for midwesterners who are interested in the cannabis industry. It really made sense to bring these two ideas together. September 14th and 15th in Kansas City, Missouri, MCIA will be hosting its second business conference. The first one, held this past March featured NCIA Executive Director Aaron Smith as the keynote speaker and raised $25,000 for the New Approach Missouri campaign.
The September conference will feature world renowned cannabis physician and researcher Dr. Sue Sisley as the keynote speaker as well as Barry Grissom, former US Attorney for the district of Kansas and Michael Correia, NCIA Director of Government Relations. The night before the conference there will be a meet-and-greet, and there will be a fantastic networking event at the conclusion of the first day of the conference. There are also really great sponsorship opportunities that include booth space, marketing perks, and space on the MOCIA.org website. If you would like more information about what’s going on in Missouri or would like to inquire about participating in the September conference, contact karin@mocia.org.
Karin Spinks-Chester is the President of the Missouri Cannabis Industry Association and the Executive Director of Greater St. Louis NORML. She also serves as the Outreach Coordinator for New Approach Missouri. With a background in fundraising, community organization and volunteer management, Karin started working in marijuana law reform at the beginning of 2016 with New Approach Missouri. Immersing herself in the world of activism and learning everything she could about cannabis and the cannabis industry, Karin later combined that knowledge with her fundraising and organization skills to help MCIA develop meaningful educational opportunities for members and raise money to support state level law reform efforts. Missouri Cannabis Industry Association is an NCIA Allied Association.
New Policy Directives For Cannabis Issued By NCSL
by Michelle Rutter, NCIA Government Relations Manager
Last week, the National Conference of State Legislatures (NCSL) met in Los Angeles for their annual Legislative Summit. NCSL was created in 1975 with the goal of establishing a single national organization to support, defend and strengthen state legislatures. NCSL prides itself on being bipartisan and seeks to improve the quality and effectiveness of state legislatures, promote policy innovation and communication among state legislatures, and ensure that state legislatures have a strong, cohesive voice at the federal level.
At the Legislative Summit last week, NCSL hosted two separate panels on cannabis policy. The first was titled “Crossroads: States, the Federal Government and Marijuana,” while the second was titled “Changing Federal Landscape: Financial Services for Marijuana Businesses.” NCIA’s own Director of Government Relations, Michael Correia, spoke eloquently on the banking panel and educated attendees and legislators about the importance of cannabis business’ access to financial services.
NCSL isn’t the only policy related group to show interest in cannabis policy: both the U.S. Conference of Mayors and the National Association of Counties have recently adopted similar positions. In June, a group of 12 governors, both Republican and Democrat, signed a letter to congressional leadership asking that they pass the STATES Act.
Following the summit, NCSL issued two new policy directives related to cannabis: the first stated that NCSL “maintains that the federal government should respect state decisions to regulate cannabis, including hemp in non-FDA approved cannabis products,” while the second said “NCSL acknowledges that due to the expansion of legal cannabis, legitimate business enterprises need access to financial institutions that provide capital, security, efficiency, and record keeping.”
We couldn’t agree more.
New Bill: Fairness in Federal Drug Testing Under State Laws Act H.R. 6589
In the 115th Congress, there are more cannabis reform bills than ever before — dozens, as a matter of fact! This week, we want to highlight another brand new bill introduced in the House of Representatives.
Bill: H.R. 6589: Fairness in Federal Drug Testing Under State Laws Act
Introduced by: Congressman Charlie Crist (D-FL) and Congressman Drew Ferguson (R-GA)
What It Does: This bill would protect federal workers “whose residence is in a State where that individual’s private use of marijuana is not prohibited” from being denied employment or being “subject to any other adverse personnel action” as a result of a positive cannabis test. There is, however, an exception is laid out if there is “probable cause to believe that the individual is under the influence of marijuana” at the workplace. The bill’s language applies only to civilian federal employees across departments and agencies, from being punished for their off-the-job cannabis consumption as long as it is in accordance with a state law — whether that be medical or adult-use. The bill does not cover those applying for or holding positions involving “top secret clearance or access to a highly sensitive program.”
What To Expect: Now that the bill has been introduced, NCIA will continue to gather cosponsors for the legislation, as well as advocate for a hearing. With August recess underway and midterm elections in November (register here), timing will be of the essence.
NCIA’s government relations team was happy to work with Congressman Crist’s office on the Fairness in Federal Drug Testing Under State Laws Act’s language and roll-out. It is undoubtedly time for federal law to respect states’ decisions to legalize cannabis — and protect consumers and employees alike.
What to Know About the New bill: Marijuana Data Collection Act
In the 115th Congress, there are more cannabis reform bills than ever before — dozens, as a matter of fact! This week, however, a brand new bill was introduced that actually does not involve the cannabis plant at all, but rather focuses on data collection and information that can be gathered from states that have chosen to legalize cannabis in some form.
Bill: The Marijuana Data Collection Act
Introduced by: Congresswoman Tulsi Gabbard (D-HI) and Congressman Carlos Curbelo (R-FL)
Original Cosponsors: Reps. Don Young (R-AK), Darren Soto (D-FL), Beto O’Rourke (D-TX), Earl Blumenauer (D-OR), Dana Rohrabacher (R-CA), Matt Gaetz (R-FL), Peter DeFazio (D-OR), Eleanor Holmes Norton (D-DC), Dina Titus (D-NV), Charlie Crist (D-FL), Tom Garrett (R-VA), Lou Correa (D-CA), Barbara Lee (D-CA), Mark Pocan (D-WI) and Salud Carbajal (D-CA)
Endorsements: National Cannabis Industry Association, National Organization for the Reform of Marijuana Laws (NORML), Third Way
What It Does: This bill requires data collection and study with regard to the impact of state-regulated cannabis legalization on revenues and state allocations, the medicinal use of cannabis, (other) substance use, criminal justice, and employment. Specifically, this bill requires the Secretary of Health and Human Services to coordinate with the Department of Justice, the Department of Labor, and relevant state agencies. The bill also directs the National Academy of Sciences (NAS) to publish a biannual study on the health, safety, and economic effects of state legalized cannabis programs– whether they be medicinal or adult-use. The report will also outline best practices for state-led data collection, as well as recommendations to overcome any barriers preventing data collection and gaps in data.
What To Expect: Now that the bill has been introduced, NCIA will continue to gather cosponsors for the legislation, as well as advocate for a hearing. With August recess around the corner and then midterm elections in November (register here), timing will be of the essence.
NCIA’s government relations team was happy to work with Congresswoman Gabbard’s office on the Marijuana Data Collection Act’s language and roll-out. While many studies have looked individually at many of the effects that the Marijuana Data Collection Act seeks to, this is the first time a congressional bill has directed federal agencies to research, collect, and aggregate such data in one report. At a time when “fake news” and misinformation run rampant, we can’t think of a better thing than a bill solely directed at data.
Member Blog: Increased Enforcement Is Coming – Takeaways for California and the Broader Cannabis Industry
As June came to a close, so too did California’s phase-in “Transition Period” of cannabis regulation. As a result, a number of additional labeling and testing requirements are now live. And with those newly effective regulations, there are also heightened prospects for enforcement actions. But the lessons from California’s regulatory rollout do not stop at the state border.
What should California cannabis businesses be doing differently? The simplest answer is, of course, the same as in every state cannabis market: follow the rules that are in effect. But it is a universal truth of highly regulated industries that not every possible scenario will be addressed by the rules. That is, in cannabis as in all highly regulated industries there are potential ambiguities and questions of interpretation inherent in the regulations.
California Bureau of Cannabis Control chief Lori Ajax recently tried to help calm industry concerns by offering insights into her team’s enforcement mindset. Ajax noted that “[t]here’s a lot of confusion out there” on what is and is not compliant. As a result, she explained that when the Bureau finds conduct it concludes is a violation, the regulatory response will be informed by whether the business “honestly thinks they’re in compliance.”
So how should a business go about demonstrating its good faith attempts to comply with cannabis regulations, in California and in the other state-legal markets?
Start at the Top
Good compliance practices start with the tone at the top of the company. There is a reason why so many of the nation’s leading companies involve their senior executives in formulating and promoting compliance efforts. Doing so sends a strong message to the entire organization that compliance is a priority, and that the path to corporate advancement does not involve cutting corners. Putting real resources into compliance provides a powerful indicator of a company’s values, and senior executives’ time is a key corporate resource. Put another way, if a regulator is trying to decide whether you have made a good faith effort to comply with the rules, you do not want to lay the decision at the hands of an inexperienced intern.
Build Strong Processes
Leaders in highly regulated industries tend to implement strong compliance processes. Why? For one thing, clear written policies help staffers understand what they can and cannot do. And these policies are a permanent resource for your team, even when your compliance staff is not on premise. But in addition to helping your team follow the rules, strong processes also help regulators understand what you are doing. If, for example, a regulator wants to see if you “honestly think[]” you are in compliance, one of the best pieces of evidence is a clear roadmap of your efforts to be in compliance.
Maintain Focus
This is a fast-moving industry, and the rules are rarely static. A business could have a strong commitment to compliance and detailed processes, but if its compliance efforts are keyed to regulations that have been out of date for many months that is unlikely to sway a regulator. For example, regardless of what they may have done in the past, a Colorado retail licensee would likely receive little sympathy from regulators if they failed to update their policies regarding statements on possible health benefits of their products in the wake of the MED’s recent bulletin regarding retailers recommending cannabis for morning sickness. A regulator will have little sympathy for a business that fails to alter its compliance efforts in the wake of contrary guidance. Effective compliance requires vigilance.
In short, cannabis businesses in California can likely expect heightened levels of enforcement as these additional rules come into effect. But the best practices for California businesses are no different than for those around the nation: by prioritizing compliance throughout the organization and building and updating strong compliance procedures, a highly regulated business takes key steps towards demonstrating its good faith, honest attempts to comply with the law.
Michael Cooper is the co-founder and managing member of MadisonJay Solutions LLC, a leading regulatory advisor to cannabis companies and a member of the NCIA.Agraduate of Harvard College and Harvard Law School, he previously served as General Counsel of MHW, Ltd., which provides compliance services to the beverage alcohol industry, and in the litigation department of Cravath, Swaine & Moore LLP, known as one of the nation’s premier law firms for nearly two centuries.
Top Three Ways to Support Policy Reform During Congress’ August Recess
Between vacations and time with the family, July’s Quarterly Cannabis Caucus events, and running your business, summer is a jam-packed season. Every year, Congress recesses for the month of August. Traditionally, this time has been used for those Members to leave the Capitol and return home to their districts and meet with constituents and, of course, campaign for re-election. Though this makes August a quiet month in D.C., it’s a great time for you and your colleagues to get involved with the political process, engage with Members of Congress, and educate them on the benefits of a legal, regulated cannabis industry. Here are the top three ways you can get involved in your home state during August recess:
Attend a town hall
Town hall meetings are an excellent way for businesses, local leaders, and representatives of the cannabis movement to communicate with elected officials about issues affecting your community. Make sure you call or check your Representatives’ and Senators’ websites to see if any town halls have been scheduled during August recess. If they aren’t planning on holding one, consider planning a town hall yourself and inviting various elected officials to talk about cannabis policy in your community and on the federal level. Check NCIA’s Facebook page regularly for information about upcoming town hall events in your region.
Invite Members of Congress or their office on a tour of your business
Even though cannabis is arguably more mainstream than it’s ever been, many elected officials still have not had the chance to experience what the responsible and legal cannabis industry looks like with their own eyes. Whether you’re involved with growing, processing, or dispensing cannabis, or operate an ancillary business, a tour with a member of Congress and/or their staff can be eye-opening and educational to them. Reach out to your elected officials’ district office and ask if they would be interested in a tour – their answer may surprise you!
Schedule a meeting with your Member’s district office
August recess means members of Congress are home for an entire month and it is a great opportunity to meet with them and their staff! There are very few things more compelling than a personal story when talking to elected officials, so whether your experience has been with the benefits of medical cannabis, the unfair tax burden of 280E, or the struggle to gain, and keep, access to traditional banking, be sure to schedule an appointment with your district office to tell that story.
We all have a responsibility to educate and engage with elected officials in order to change the perception surrounding cannabis. August recess is the perfect opportunity to get involved with federally elected officials without having to leave home! If you need advice, help, or materials to assist you, remember to contact NCIA’s Government Relations team in Washington, D.C. by emailing michelle@thecannabisindustry.org.
The Push for Equity in the Cannabis Industry
by NCIA Editorial Staff
It’s no secret that the cannabis industry still has much work to do in terms of building a diverse, equitable, and inclusive workforce. But what barriers stand in the way, and how can we overcome them?
According to the ACLU, cannabis use is roughly equal among African-Americans and whites, yet African-Americans are nearly four times more likely to be arrested for possession of the substance. Higher arrest and incarceration rates for these communities are not reflective of increased prevalence of drug use, but rather of law enforcement’s disparate focus on urban areas, lower income communities, and communities of color.
People of color are unequivocally and disproportionately affected by the prohibition of cannabis — so, what happens when a state decides to end prohibition?
Many states that have chosen to tax and regulate cannabis have included provisions in those laws that prohibit individuals with any prior convictions from working in a licensed cannabis company. Not only that, according to the Minority Cannabis Business Association, “heavy regulation, the high cost of entry, and information gaps hinder minorities from entering the industry as owners, employees, and patients & consumers”.
Not all states have taken that route, however. Massachusetts state law requires the Cannabis Control Commission to promote full participation in the industry by people disproportionately harmed by marijuana prohibition and enforcement. The goals of Massachusetts’ social equity program include reducing barriers to entry to the adult-use cannabis industry and providing technical services and mentoring to individuals facing barriers.
Action is also being taken at the local level. In January, the District Attorney’s office in San Francisco announced that they would be retroactively applying Proposition 64, which legalized the possession and recreational use of cannabis for adults ages 21 years or older, to misdemeanor and felony convictions dating back to 1975.
The important message of social equity, diversity, and inclusion in the cannabis industry has also reached the halls of Congress. A year ago, Sen. Cory Booker (D-NJ) introduced S. 1689: The Marijuana Justice Act, which was the first piece of federal legislation to ever order federal courts to expunge cannabis convictions and actually punish states that have racially disproportionate arrest rates or disproportionate incarceration rates for marijuana offenses.
Just last week, Senate Minority Leader Chuck Schumer (D-NY) introduced the Marijuana Freedom and Opportunity Act, which creates a dedicated funding stream for women and minority-owned cannabis businesses that will be funded by revenue generated by the industry and directly linked to the industry’s growth. Not only that, the bill provides $100 million in grant funding to encourage state and local governments to develop, enhance or expand expungement or sealing programs for individuals convicted of marijuana possession.
In addition to these pieces of legislation, there have also been resolutions filed that address these disparities. In June, Congresswoman Barbara Lee (D-CA) introduced the Realizing Equitable & Sustainable Participation in Emerging Cannabis Trades (RESPECT) Resolution, which encourages equity in the cannabis industry. The resolution urges state and local leaders to implement a series of practices when granting licenses for legal cannabis businesses to improve access for communities of color 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 was proud to endorse this resolution and looks forward to advocating for its passage.
There’s still an incredibly long way to go before we have a cannabis industry that’s as diverse and rich as the cannabis community as a whole. Here at NCIA, we know the task of representing the legal and legitimate cannabis industry is more than just advocating for the biggest or richest companies — we’re also here to advocate for diversity, inclusion, and equity in this industry that we are all building together.
The Marijuana Freedom and Opportunity Act (Finally) Makes Its Debut
After more than two months since Senate Minority Leader Chuck Schumerannounced forthcoming marijuana reform legislation, this week finally saw the bill’s introduction. The Marijuana Freedom and Opportunity Act removes marijuana from the schedule of controlled substances, allowing states to determine their own cannabis policies without fear of federal interference.
The Marijuana Freedom and Opportunity Act, cosponsored by Senators Bernie Sanders (I-VT), Tim Kaine (D-VA), and Tammy Duckworth (D-IL), would specifically remove marijuana from the Controlled Substances Act, effectively decriminalizing the substance at the federal level and allowing states to determine their own cannabis policies without the threat of interference.
The full text of the bill describes further provisions, including providing 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.
“We commend Senator Schumer for joining the growing chorus of Congressional leaders stepping forward with alternatives to the failed prohibition of marijuana,” said Aaron Smith, executive director of the National Cannabis Industry Association (NCIA). “With millions of Americans already living in states that successfully regulate adult-use cannabis and support for national legalization at record levels, this legislation would finally align federal marijuana policies with mainstream voter sentiment.”
Oklahoma O-Kays Medical Cannabis Ballot Initiative
On Tuesday, voters in Oklahoma approved a measure that will make medical cannabis legal in the state with over 56% popular support.
The referendum, known as SQ 788, will allow patients 18 and older to use medical cannabis to treat their conditions with a recommendation from their doctor, and individual under the age of 18 would need the signatures of two physicians and his or her parent or legal guardian. Physicians can recommend cannabis for any condition for which they think cannabis would be a helpful treatment.
With the addition of Oklahoma, there are now effective medical cannabis laws in 30 states, as well as the District of Columbia, Guam, and Puerto Rico. A total of 46 states allow for the medical use of cannabis in some form.
“In spite of a well-financed and misleading opposition campaign, Oklahoma voters proved that medical cannabis is no longer a controversial issue by enacting a sensible law at the ballot box tonight.” said Aaron Smith, executive director of the National Cannabis Industry Association (NCIA). “The passage of this law is not only a great victory for some of the Sooner State’s most vulnerable citizens – it will also create new business opportunities as the state’s underground market for medical cannabis is replaced by licensed businesses with the potential to create thousands of jobs and millions in new tax revenue,” continued Smith.
About SQ 788:
Oklahoma state will establish rules governing the licensing and regulation of facilities to cultivate, process, and dispense medical cannabis, and allows patients to cultivate limited amounts of medical cannabis at home.
The passage of SQ 788 marks the first time that a state medical cannabis ballot initiative has been approved by voters in an electoral primary. Observers were skeptical of the initiative passing in an unprecedented election cycle, particularly given strong and well-funded efforts from opponents to the referendum in the months before the vote.
Video: Another Successful NCIA Lobby Days
NCIA’s Aaron Smith re-caps another successful Cannabis Industry Lobby Days! Watch this video to hear more about NCIA Members’ experiences and why you should plan to join us next year in D.C.
Are you an industry leader looking to invest in continued national advocacy for the industry but not yet a member of NCIA?
NCIA’s staff and professional lobbying consultants work year-round in our nation’s capital to build support for the cannabis business community and the policy changes needed for our industry to reach its full potential. That work has led us to the tipping point we are seeing today and it’s all been made possible by the financial support of our members.
Adding your name to the growing list of responsible businesses behind this effort will bring us even closer to reaching the day when the cannabis industry is treated fairly under federal law.
Already a member of NCIA but want to enhance your support for this vital work? Sponsor a quarterly Cannabis Caucus event in a city near you! All profits from event sponsorships support the efforts of our robust team in D.C.
NCIA Update From Capitol Hill
NCIA’s team in Washington, D.C. and our allies in Congress have been busy advancing cannabis reforms on Capitol Hill over the last couple of weeks. The Congressional appropriations process for the FY2019 federal budget is well under way and cannabis has been at the center of some of the debates around government spending.
Last week, the Senate Appropriations Committee approved legislation that would renew protections for state medical cannabis programs when the current spending budget expires in September. The language, which was introduced by Sen. Patrick Leahy (D-VT), prevents the Department of Justice from using any resources to target medical cannabis patients or providers who are in compliance with state laws.
While this provision has been amended into the budget since 2014, this is the first time that this provision has been included in the original language of the spending bill by either chamber of Congress. Thanks to the hundreds of member-businesses that have invested in NCIA’s work on Capitol Hill over the years and the growing public support for national cannabis reforms, this policy is no longer a controversial issue for Congress.In fact, leading up to the Senate hearing, Sen. Lankford (R-OK) attempted to include a budget rider that would effectively nullify the medical cannabis protections but later withdrew it, citing lack of support.
Over on the House side, an amendment offered by Rep. David Joyce (R-OH) which would have restricted the Treasury Department from using tax dollars to sanction banks for providing financial services to the legal cannabis industry came very close to passing but ultimately did not make it into the budget package. NCIA is working with our allies in the Senate to include the banking protections in that chamber’s version of the federal budget in the days ahead.
Another champion for social justice and sensible cannabis policies, Rep. Barbara Lee (D-CA), introduced a first-of-its-kind resolution bringing attention to the racially discriminatory enforcement of marijuana prohibition. Lee’s Realizing Equitable & Sustainable Participation in Emerging Cannabis Trades (RESPECT) Resolution calls on states with legal cannabis to enact policies to ensure that people of color and communities that have suffered the most under prohibition policies have equal access to business opportunities within the emerging legal cannabis industry.
NCIA applauded Rep. Lee and the bipartisan group of lawmakers who are leading the charge on tackling this important issue.
Meanwhile, other nations may be surpassing the U.S. in enacting sensible marijuana policies. Just today, the Canadian Parliament passed legislation that would legalize adult-use cannabis for our neighbor to the North beginning in October 2018. For more information about how the U.S. cannabis industry risks falling behind other nations due to outdated federal laws, download NCIA’s recent white paper, “How the U.S. is Falling Behind in the Global Cannabis Market.”
Stay engaged with NCIA for more news about the advancement of federal cannabis reforms and to learn about how you can get more involved.
Our Members in Action at NCIA’s 2018 Cannabis Industry Lobby Days
by NCIA Editorial Staff
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 relationships NCIA has built on Capitol Hill, as well as the personal stories told by our members each year at our annual Lobby Days events in Washington, D.C. NCIA’s 8th Annual Cannabis Industry Lobby Days, hosted May 21-23, was the industry’s most impactful fly-in yet, as our members made more inroads to Congress at a time when the nation has reached a tipping point in the fight to protect legal cannabis.
“So many more people keep coming to Lobby Days which is amazing to see,” said Karson Humiston, founder of Vangst. She’s one of Forbes’ 30 under 30 and the only female in cannabis to make the list. She’s focused on telling members of Congress about the potential for job creation and the economic impact of a fully recognized cannabis industry. “We are talking about jobs as much as possible in order to educate members of Congress about the economic stimulation regulated cannabis is bringing to the states and the need for federal legalization,” she said.
NCIA announced the release of its 2018 State Cannabis Progress Report during this year’s Lobby Days. The publication outlines a myriad of economic and social benefits already being realized by states with successful cannabis programs, including job creation, tax revenue, and reductions in crime and teen use.
So far 2018 is shaping up to be much different from the past seven years, largely because of Republican backlash against Attorney General Jeff Sessions attempting to ramp up federal interference in state cannabis programs by rescinding the Cole Memo. Historically, the GOP has been less publicly supportive of reforming cannabis laws, although there has been a strong current of support among certain segments of the party. Now, they listen and many have even joined us in support of banking and tax reforms needed for our industry to reach its full potential, in addition to their traditional support of federalism issues related to cannabis. Advocates, patients, and NCIA member-businesses all over the United States are keeping this positive momentum going.
At the Lobby Days welcome reception on the evening of Monday, May 21, NCIA Executive Director Aaron Smith said he was delighted with the turnout. “There are so many new faces, so many old friends, and Lobby Days veterans,” he told the audience of cannabis professionals, who had just arrived in Washington prior to the two full days of meetings with congressional offices. “Starting tomorrow, we will descend upon Capitol Hill to show lawmakers what a responsible, politically engaged cannabis industry looks like.” He called Lobby Days one of the cannabis industry’s most important events of the year.
NCIA member and founder of Washington, D.C.’s National Cannabis Festival and the National Cannabis Policy Summit, Caroline Phillips, said that she was proud to see so many members coming to her backyard to demonstrate their unity. “This is a really wonderful opportunity to share with members of Congress the diverse and innovative ideas of the cannabis industry and to show off the professionalism, creativity, and care that the people in the industry put into their work, “she added. “I think a lot of members on the Hill are starting to understand the cannabis industry is a lot more than just stereotypes, and for them to have one-on-one interactions with some of the best professionals in our industry is extraordinarily valuable.”
New to Lobby Days was Attorney Blake Mensing. He was eager to join the crowd of professionals to advocate for the fair treatment of cannabis businesses. “I think that this is the eighth year that this is happening really shows that the industry is coming out of the shadows and the momentum has built to the point that there’s a small probability that things are going back to the way they were [prior to the reform victories of the last decade].” Mensing founded The Mensing Group after he left his job as a Municipal Attorney in Massachusetts to start a cannabis-only practice. “It’s the first time I’ve ever had fun being a lawyer,” he remarked before heading into Senator Orrin Hatch’s (R-UT) office.
Professional football player Mike James also joined NCIA this year to advocate on behalf of his fellow athletes who would prefer to treat their health issues with medical marijuana instead of opiates. The active NFL running back has played for the Tampa Bay Buccaneers and the Detroit Lions during his career, which has wreaked havoc on his body, leaving him with chronic pain that he used to treat with opioids. “Within the NFL, I’m trying to go through their process and change policy. That way, hopefully, they can be an example for society,” he said. Currently a free agent, he’s the first and only active player with a medical marijuana card.
From the need to expand medical access to cannabis, to tax and banking reform, to addressing the injustice of racially disproportionate marijuana enforcement, NCIA hit the Halls of Congress to educate members of Congress and their staffs on what’s happening in their own backyards and the successes of regulating cannabis.
For example, when it comes to tax reform, Heather Sullivan of 3C Consulting said the cash-flow is only one of the issues they have to worry about from the 280E tax burden. “It’s a tough decision come tax season,” she said. “Do you set aside those tax rates so you don’t have that money to use for other things for your business, or do you play the game and run the risk that you’re not going to get audited?” Many cannabis businesses face similar issues, which can effectively ruin a company over time.
There were many Congressional offices that were receptive to the efforts and positions of NCIA members during Lobby Days. Heather took a meeting with Sen. Bernie Sanders’ (I-VT) office, for example, and after leaving the meeting she felt that it went wonderfully, stating, “Senator Sanders is a proponent for the safe and regulated use of cannabis whether in the medical side or the adult use side, so it was a meeting that for us was an opportunity to tell Bernie and his staff how much we appreciate the hard work that he’s done, ask him what we can do as an industry to help them continue the progress that they’ve already made and learn more about where his focus is.” Sullivan is well-versed in the issues facing cannabis businesses today and knows many other officials are still in need of convincing.
In spite of heavy opposition from Attorney General Jeff Sessions, as well as House leadership, the cannabis industry saw a huge victory when protections for medical marijuana were included in this years’ fiscal budget. Now, with the help of our members who flew in to speak about their personal issues and experiences, we can all look forward to an even more progress and a better outlook for the U.S. cannabis industry.
VIDEO: Spring Policy Update From Aaron Smith
Watch this important policy update from NCIA’s Aaron Smith to learn more about the recent policy news and pro-cannabis legislation recently announced by several prominent members of Congress. Despite heavy opposition from Attorney General Jeff Sessions, the cannabis industry has stronger support than ever. Get the scoop in this video update.
VIDEO: How Section 280E of the IRS Tax Code Burdens the Cannabis Industry
As tax season officially concludes, many cannabis businesses are feeling the burden of Section 280E, which can have the effect of taxing direct-to-plant businesses at a rate up to 3.5 times higher than other businesses. This unfair provision in the federal tax code affects the entire industry’s growth potential.
Watch this video below to learn more about Section 280E. Find out more about the solution: The Small Business Tax Equity Act which would allow for the fair and equal treatment of cannabis businesses.
The Small Business Tax Equity Act: Supporting a Just Cause at NCIA Lobby Days
by NCIA Editorial Staff
The American cannabis industry should be proud of generating thousands of jobs and billions of dollars in tax revenue for America- but can you imagine how much more we could do without the 280E tax burden?
While it’s an exciting time to be in the cannabis industry, our businesses are struggling under crippling federal taxation. It’s all due to Section 280E of the IRS tax code. A provision originally set out to penalize bad actors in criminal market. Unfortunately for our industry, the federal government has yet to remove the plant from its list of scheduled drugs and continues to deny cannabis as a fully legal product with medical benefits. In sum, if your business touches the plant then you’re in danger of losing your profits under Section 280E of the IRS tax code. It’s a critical time for us to come together and demand change for the industry at the federal level so our business owners can do what they do best; grow their business and give back to the community.
Despite the 280E difficulties, Portland’s MindRite dispensary was voted the most charitable cannabis store by DOPE magazine. Owners Shea and Jaime Conley said they would give even more if their business was taxed like any other industry.
MindRite can’t write off their tens of thousands of dollars in charitable donations because 280E hinders it. “It’s coming out of our profits but its just something we do and has never been up for debate because we believe it’s the business owner’s responsibility to make the community around them better, said Shea. The Conley’s also said they would jump through even more hoops and regulations because it’s a privilege to be able to work in an industry they are so passionate about. But the fact remains, “if 280E wasn’t over our heads,” he said, “we would’ve expanded our business by now.” Without 280E they would reinvest the money they paid the government. “We could have two more dispensaries open,” said Shea.
As tax professional Jim Marty of Bridge Westexplained, businesses can normally retain profits from usual business deductions such as; employee salaries, utilities, facility rent, payments to contractors, and health insurance premiums. For those in the green space, anything outside of the cost of goods sold is not deductible. In efforts to level the playing field, Jim works with clients and lobbyists at the state level to allow for deductions. “We’ve testified in front of committees,” he said, “and some state tax rates are lower than the federal.” In prior interviews with CNBC and FOX Business, his advice is to understand your business plan because 280E creates an impossible situation for legitimate cannabis businesses.
State tax rates may be lower than federal in states like Colorado and Oregon, however, it’s not enough to offset the penalty they pay at the federal level. “We are aware of every dollar that goes out and comes in, it’s a must if you want longevity for your business,” said Shea. The dispensary deals with razor-sharp profit margins in anticipation of paying their penalty to the IRS every April.
It’s frustrating for business owners and employees. Mitch Woolheiser of Northern Lights Cannabis said his business growth is stunted as a direct result of the issue. “I can’t give my employees raises. I can’t put money back into my business. Instead, I’ve been hoarding cash in anticipation of what the IRS is going to take,” he said. In total, cannabis businesses are paying taxes on gross income which often amounts to paying rates that are 70% or higher. Comparatively, the corporate tax rate established by The Tax Cuts and Jobs Act of 2017 is only 21%.
That’s why we are once again taking to the steps of Congress in May for our 8th annual Lobby Days in Washington D.C. While in D.C., Jim said he hopes to meet with President Donald Trump. He said if the executive branch has authority to reschedule marijuana, he’d ask President Trump to categorize cannabis as a Schedule 3 substance or unschedule it completely because it would ensure that section 280E would no longer apply.
We also encourage everyone in support of a healthy, prosperous cannabis industry to talk to their Senators and Representatives about The Small Business Tax Equity Act. The amendment would exempt compliant cannabis businesses from the 280E provision which we believe would inevitably lead to in an influx of employment opportunities with more competitive salaries.
Why it’s Critical For Cannabis Business Owners to Advocate for Policy Reform
by Rachelle Lynn Gordon, NCIA Editorial Contributor
Cannabis legalization reform has been in the works for years and will certainly continue for years to come due to the plant’s Schedule I status. In addition to the activists and organizations who have paved the way for marijuana legalization for decades, such as NORML, Marijuana Policy Project, and Students for Sensible Drug Policy (SSDP), cannabis business owners are now at the forefront of what will most certainly be a multi-billion dollar industry within a short matter of time. But why is it important for these cultivators, dispensary owners, and investors to be directly involved with legalization advocacy?
“Advocacy is critical at this stage, where there is still so much progress to be made at the state and federal levels,” says David Murét, Co-founder & COO of Viridian Staffing. “While I believe that national legalization is now a foregone conclusion, the form in which it takes and who it will end up benefiting is still an open question.”
At this point in time, 30 states and the District of Columbia have legalized medical and/or adult-use cannabis, each one with their own set of rules and regulations. As more and more states begin to come online and design their own programs, lawmakers will look to states where cannabis is already legal in order to learn from both successes and mistakes. At the federal level however, things are far more complicated.
While marijuana remains an illegal drug in the eyes of the federal government, certain protections are in place for businesses that are operating in compliance with their own states’ regulations. Several members of Congress representing these states have been pushing for even further protections and/or straight legalization, in spite of current Attorney General Jeff Sessions’ staunch anti-cannabis stance. In January, Sessions rescinded the Cole Memo, which had previously stated that federal funds shall not be directed towards enforcing federal cannabis policy within states that have passed for those operating in compliance with the items stated in the memo. However, this doesn’t mean that state prosecutors have to go after compliant businesses
Fortunately, the move was a moot point. A rider bill in the federal budget proposal, which is essentially a must-pass in order to prevent a government shutdown, maintained the protections that the Rohrabacher-Farr amendment (now Rohrabacher-Blumenauer amendment), which prevents the DOJ from going after state-legal medical cannabis. A bipartisan group of 62 members of Congress sent a letter to House appropriations leaders calling for action.
“We respectfully request that you include language barring the Department of Justice from prosecuting those who comply with their state’s medical marijuana laws,” the lawmakers, led by Reps. Dana Rohrabacher (R-CA) and Earl Blumenauer (D-OR), wrote. “We believe such a policy is not only consistent with the wishes of a bipartisan majority of the members of the House, but also with the wishes of the American people.” These protections are now included through September 30th.
David Sutton, President & COO of NanoSphere Health Sciences, agrees that time is of the essence in order to create new legislation that will positively impact the industry in years to come.
“Cannabis business owners and professionals have to participate in advocacy,” he argues. “No matter how many states adopt some form of cannabis legalization, the industry still needs change at the federal level. Without a federal shift in cannabis policy, operators in the industry will remain hampered and handcuffed from growth.”
Many canna-business owners are not only involved with pro-legalization policy efforts with the industry’s future in mind, but also the end consumers. High-profile cases of medical marijuana patients becoming ill due to flower containing mold and instances of widespread pathogen prescences from certain cultivators have increased efforts to prevent these products from getting to market.
“We have a responsibility to ensure this business grows in the right way,” explains Brett Johnson, Founder & CEO of Spectrum-Gro. “We have to be the adults in the room. I am always advocating for the end users – we need to guarantee safe and consistent products that are free from harsh chemicals and other pathogens. If the current leaders in this industry do not advocate for the future, there could be negative results across the board – from cultivation to the consumer.”
There are many ways business owners and professionals within the cannabis space to get involved with advocacy. NCIA Lobby Days brings hundreds of industry professionals and thought leaders to Washington, D.C. in order to tell their stories to lawmakers and push for cannabis reform. In addition, working with local organizations within their own states and jurisdictions is a wonderful way for entrepreneurs to spread awareness and potentially help build legislation in their communities.
“If we want to see how big the industry could be and how many lives can be changed for the better, you cannot simply rely on just hope, everyone needs to act,” adds Sutton. “Change comes from the masses and the masses need each and every owner and professional to participate in industry advocacy.”
Rachelle Lynn Gordon is a Minneapolis-based writer and reporter and graduate of Hamline University. She has contributed to publications such as Cannabis Now Magazine and High Times.
News Alert! Omnibus Update: Medical cannabis businesses protected through September 30
by Michelle Rutter, NCIA Government Relations Manager
After years of continuing resolutions and many rounds of negotiations, Congress reached a budget deal and passed a new omnibus spending package that funds the government through the remainder of FY2018, which ends on September 30.
This new spending bill does include the Leahy amendment (formerly the Rohrabacher-Farr amendment), which prohibits the Department of Justice from using tax dollars to enforce federal law against state-legal medical cannabis patients and businesses. Following the rescission of the Cole Memo in January by Attorney General Jeff Sessions, NCIA and our allies in Washington, DC pushed even harder to ensure that this language, which has been included in federal appropriations bills since 2014, was included in the spending package for the remainder of FY2018. In addition to language protecting state-legal medical cannabis programs, the omnibus bill unfortunately also included a provision that continues to block Washington, DC from taxing and regulating adult-use cannabis, despite the fact that voters approved the legalization measure nearly four years ago.
In normal budget cycles, Congress passes a fiscal year budget that goes from October 1 until September 30. But in these extraordinarily partisan times, Congress has been unable to agree on an annual budget and has patched together short-term funding bills called Continuing Resolutions (CR’s), which maintains current funding levels. Since just last September, there have been five such short-term CR’s. All of these CR’s have included the Rohrabacher-Farr (now Rohrabacher-Blumenauer in the House and the Leahy amendment in the Senate) amendment which protects medical cannabis businesses, programs, and patients in states where it’s legal. The last of these continuing resolutions is set to expire on Friday, March 23rd. The new omnibus spending bill will continue to fund the government through the remainder of FY2018, which ends on September 30, 2018.
The congressional appropriations process for FY2019 is already underway. While we have achieved a victory in extending medical cannabis protections, there’s much more work to be done. NCIA is lobbying not only to continue the medical cannabis protections, but to also expand protections to protect all legal cannabis businesses from federal interference, including adult-use businesses operating in the eight states with such programs. We are also working to pass a cannabis banking amendment, as well as an amendment that would protect veterans who choose to participate in state-legal cannabis programs. In addition to all of these appropriations amendments, NCIA is still working to pass legislation that would solve the cannabis banking problem, amend IRC Section 280E, and, ultimately, end cannabis prohibition.
VIDEO: Aaron Smith invites you to #NCIALobbyDays this May 21-23
Over the last several years the cannabis industry has experienced unparalleled economic growth. But, as business owners in the industry, we know first hand that this success also comes with persistent challenges. As long as we still experience the crippling effects of federal policies like 280E and unfair banking regulations, our success is merely potential.
This is why it is essential that cannabis business owners are also industry advocates. With the challenges posed by the current administration and the uncertain federal policies governing our industry, it is critical that we make our voices heard on Capitol Hill.
Join 300+ cannabis industry professionals at NCIA’s 8th Annual Cannabis Industry Lobby Days on May 21-23 in Washington, D.C. to advocate for our industry and forge a unified front with the industry’s most politically engaged leaders. Register before April 30 for a chance to win tickets and travel for two to #CannaBizSummit July 25-27.
Watch this video to hear more from NCIA’s Co-founder and Executive Director Aaron Smith.
For more information about NCIA’s 8th Annual Cannabis Industry Lobby Days,
by Michael Correia, NCIA Director of Government Relations
Following a brief shutdown in the wee hours of Friday morning, Congress came to yet another short-term budget deal to continue funding the federal government until March 23, 2018.
In normal budget cycles, Congress passes a fiscal year budget that goes from October 1 until September 30. But in these extraordinarily partisan times, Congress has been unable to agree on an annual budget and has patched together short-term funding bills called Continuing Resolutions (CR’s), which maintains current funding levels. Since just last September, there have been five such short-term CR’s. These short-term funding bills have not only hampered basic government functions, but have also affected military readiness and has even led to a federal government shutdown, which has lowered the public’s already dismal opinion of Congress.
After much negotiation between House and Senate leaders, it appears that the parameters of a two-year budget solution have been agreed to. The new budget deal is both bipartisan and bicameral (which has become a rarity in Washington, D.C.) and addresses many controversial issues that have hindered previous negotiations. This new budget deal increases funding levels for the military, provides billions in disaster relief, addresses infrastructure, education, child care, and attempts to combat the opioid epidemic.
But, in typical Congressional fashion, the details still have yet to be finalized. The Congressional Leaders have agreed to work with the leaders of the appropriations committees to ensure that all budget priorities are met.
So, what does this mean for your business and what does this mean for medical cannabis protections?
Since 2014, the federal budget has included language that protects medical cannabis operators from Department of Justice prosecution. These protections will be maintained in this short-term funding bill, so medical cannabis programs and businesses are protected until at least March 23, 2018. However, it is imperative that Congress maintains these protections (and even expand protections for adult-use) in the longer budget that is being negotiated between now and March 23. NCIA will continue our Congressional lobbying efforts and work with our partners and other advocates to continue these protections.
Our team in Washington, D.C., works everyday to make the industry’s voice heard, but nothing matches the power of a personal story personally told. Remember to join us for NCIA’s 8th Annual Cannabis Industry Lobby Days this year on May 21-23 in Washington, D.C.
VIDEO: Save The Date For NCIA’s 8th Annual Lobby Days!
JUST ANNOUNCED! On May 21-23, 2018, NCIA Members will descend on Capitol Hill in Washington, D.C. for the 8th year in a row.
WHAT IS LOBBY DAYS? Every year, the National Cannabis Industry Association hosts the annual Cannabis Industry Lobby Days in Washington, D.C. This year, Lobby Days will bring over 300 cannabis industry professionals together to make their voices heard in the halls of Congress.
WHY ARE LOBBY DAYS IMPORTANT? With victories in eight states across the country during the 2016 presidential election, as well as the challenges posed by the new administration, fixing federal policies is more critical than ever. This year, we will continue to emphasize the importance of protecting legal cannabis businesses and patients, reforming section 280E of the federal tax code, and solutions to the banking crisis, all of which are critical to respecting state marijuana laws. Our team in Washington, D.C., works everyday to make the industry’s voice heard, but nothing matches the power of a personal story personally told.
Watch this short video to see highlights from last year’s 7th Annual Cannabis Industry Lobby Days, and to learn more about why you should plan to join us this year as we create momentum for cannabis policy reform in the halls of Congress.
Last year represented the most robust growth phase for NCIA in our seven-year history. The increase in membership and revenues has allowed us to expand our presence in Washington, D.C., provide better benefits and service to our members, and produce the best events in the industry.
Organizational Highlights
NCIA membership rolls increased by 40% during 2017 and NCIA is beginning the year with 1,530 dues-paying members.
Increased revenues allowed increase our budget for lobbying and public affairs on behalf of the cannabis industry by over 60%.
NCIA launched its Policy Council which has led the development of four policy white papers and has generated additional funding for our work in Washington, D.C.
NCIA worked with the Governors of the first four states to regulate marijuana to generate a sign-on letter urging the administration not to interfere with their states’ cannabis programs.
As we enter into our 8th year as your national industry association, we’re grateful to our more than 1,500 member businesses across the country who make our work possible. This year, it is more important than ever to unify as an industry and make our voices heard in the halls of Congress. Start planning now to join us in Washington, D.C., on May 21-23, 2018 for our 8th Annual Cannabis Industry Lobby Days. Let’s stand together and show our nation’s decision-makers what a legitimate, responsible cannabis industry looks like. See you in D.C.!
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For the past eight years, we attempted to make all our decisions from the experience and perspective of a new patient that has never used cannabis previously. This translates to individual consultation rooms so patients may feel free to discuss their medical conditions, symptoms, and concerns in a private space rather than standing shoulder to shoulder at a retail counter. 
True success will come when we pass legalization in November, but we’ve achieved some significant milestones. The first was creating a unified coalition of cannabis reform and social justice advocates to develop ballot language that borrows from the best practices used by the states that have legalized before us as well as Michigan’s medical marijuana licensing law. We also collected more than 360,000 signatures to place the issue on the November ballot. We’re proud of what we achieved so far, but the “vote yes” campaign has only just begun and there a lot more to do to make sure our initiative passes. 
The state of Missouri is about to have a medical cannabis program. In November, 
Michael Cooper is the co-founder and managing member of 
After more than two months since Senate Minority Leader Chuck Schumer announced forthcoming marijuana reform legislation, this week finally saw the bill’s introduction. The Marijuana Freedom and Opportunity Act removes marijuana from the schedule of controlled substances, allowing states to determine their own cannabis policies without fear of federal interference.
“So many more people keep coming to Lobby Days which is amazing to see,” said Karson Humiston, founder of 
There were many Congressional offices that were receptive to the efforts and positions of NCIA members during Lobby Days. Heather took a meeting with Sen. Bernie Sanders’ (I-VT) office, for example, and after leaving the meeting she felt that it went wonderfully, stating, “Senator Sanders is a proponent for the safe and regulated use of cannabis whether in the medical side or the adult use side, so it was a meeting that for us was an opportunity to tell Bernie and his staff how much we appreciate the hard work that he’s done, ask him what we can do as an industry to help them continue the progress that they’ve already made and learn more about where his focus is.” Sullivan is well-versed in the issues facing cannabis businesses today and knows many other officials are still in need of convincing.
