Breaking Down the Recent Cannabis Rescheduling Recommendation

For more than fifty years, the federal government has maintained that cannabis is a Schedule I drug, meaning that it has a high potential for abuse and no accepted medical value. That changed last week (somewhat) when the Department of Health and Human Services (HHS) recommended to the Drug Enforcement Administration (DEA) that cannabis be placed in Schedule III, meaning that it has moderate to low abuse potential, a currently accepted medical use, and a low potential for psychological dependence. 

Why now?

In October 2022, the Biden Administration announced that it would ask the Secretary of HHS and the Attorney General to initiate the administrative process to review expeditiously how marijuana is scheduled under federal law. As the Brookings Institute outlined years ago, the Executive process for rescheduling is much more complex than the Legislative path. 

It’s no secret that the presidential election is barely more than a year away, and the President seems to be looking to make good on his campaign promise to reform the nation’s marijuana laws.

What does this mean?

First off, it’s critical to note that HHS’ recommendation to DEA is just that: a recommendation. It is non-binding. The DEA may come to the same conclusion that HHS did, but is not required to. 

If cannabis is moved to Schedule III of the Controlled Substances Act, one positive outcome would be that 280E would no longer apply to plant-touching businesses, removing an incredibly punitive and debilitating provision in the tax code.

According to NCIA’s board chair emeritus, Khurshid Khoja, Esq., “…it’s important to remember that rescheduling would not apply the federal Food Drug and Cosmetic Act (FDCA) to marijuana for the first time—it applies right now, and like the federal Controlled Substances Act (CSA), would continue to apply after rescheduling. But absent any statutory authority permitting FDA to do otherwise, the FDCA would continue to apply after descheduling too, just as it does to hemp products.” 

Others claim that the shift to Schedule III would have minimal impact on businesses and individuals. Here at NCIA, we’re cautiously optimistic but recognize that moving cannabis to schedule III could have some limited benefit but does nothing to align federal law with the 38 U.S. states which have already effectively regulated cannabis for medical or adult use.

What now?

Now that HHS has made their recommendation, the DEA will begin its scheduling review process. 

Many are divided about what a move to Schedule III would actually look like. Yes, there would be the elimination of 280E, but what about enforcement priorities? Interstate commerce? Criminal penalties? There are so many unknowns. 

NCIA has previously produced a common sense, workable roadmap for that federal comprehensive reform and provided detailed feedback on legislative efforts. It is time for Congress to follow the will of the American people. Don’t get me wrong, there’s no doubt that this recommendation is a step in the right direction and is long overdue. But we can’t lose sight of the ultimate goal: removing cannabis from the Controlled Substances Act entirely.

Have questions?

Join NCIA on September 14 at 1 pm ET for an engaging webinar where we will unpack all your questions! Register today and don’t miss your chance to hear more about what this means for the cannabis industry and your business.

Video: NCIA Today – Thursday, February 9, 2023

NCIA Director of Communications Bethany Moore checks in with what’s going on across the country with the National Cannabis Industry Association’s membership, board, allies, and staff. Join us every other Thursday on LinkedIN for NCIA Today Live.

 

 

 

 

Bills in Congress, SAFE Banking, and House and Senate Committees

by Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations

While it got off to a slow start, the 118th Congress is finally in full swing. Let’s take a look at some of the latest cannabis and government relations news coming out of Washington, D.C.:

Bills are being introduced

When a new Congress begins, all legislation from the last session must be re-introduced and start from scratch again in the legislative process. Over the last few weeks, a couple of cannabis bills have been reintroduced: two from Congressman Greg Steube (R-FL) and one from Congressman Alex Mooney (R-WV). 

Rep. Mooney was the first to introduce a cannabis bill for the 118th Congress when he released his Second Amendment Protection Act. Last Congress, a similar bill was filed by the late Rep. Don Young (R-AK) known as the Gun Rights And Marijuana (GRAM) Act. The full text of the new measure is not yet available so it’s unclear what exactly the bill contains, but advocates expect the bill to be similar to the version Mooney introduced in the 116th Congress. Interestingly, although federal law explicitly prohibits all Americans who consume or possess marijuana from purchasing or possessing a firearm, a judge in Oklahoma late last week declared that ban unconstitutional.

Congressman Steube’s two bills were the Veterans Cannabis Use for Safe Healing Act and the Marijuana 1-to-3 Act. The former prohibits the Department of Veterans Affairs (VA) from denying a veteran any VA benefit due to participation in a state-approved marijuana program. For veterans participating in these approved programs, the VA must ensure its healthcare providers both discuss marijuana use with such veterans and adjust treatment plans accordingly and record such use in the veterans’ medical records. The latter bill, the Marijuana 1 to 3 Act, has been introduced by Rep. Steube in past sessions and seeks to do exactly what the title says: reschedule cannabis to Schedule 3 – a reform that would not resolve the federal conflict with the vast majority of state laws with some form of legal cannabis 

A SAFE Bet?

The cannabis industry may have been devastated when Congress failed to pass the SAFE Banking Act last Congress, but we’re not giving up yet! Congressional champions have every intention of reintroducing SAFE in both chambers, but don’t expect the bill to look identical to last session. 

Last week, Senate Majority Leader Schumer held a closed-door meeting with a number of other Democratic Senators to discuss what’s next for the bill. Reportedly, the Senators discussed changing the text of the bill to reflect some of the “SAFE +” language that was negotiated at the end of 2022, including the HOPE Act. It’s currently unclear if the House’s version will be identical.

Committees Finally Seated

It took Congress longer than usual to seat committees this session – particularly in the House – but we now know which members will have jurisdiction over which issue areas. Our friends at Politico put together an extensive list, but some committees I’ll be keeping my eye on include the House Judiciary Committee, the Senate Banking Committee, and the Appropriations Committees in both chambers. 

Stay up to date on the latest congressional cannabis policy by following NCIA on social media, subscribing to our newsletter, and attending one of our upcoming regional events

Behind Closed Doors: NCIA at CANNRA’s June Conference

The discussion about the future of cannabis legalization is ongoing, to say the least. Recently, Cannabis Regulators Association (CANNRA) held a two-day conference in early June to gather Marijuana government regulators, trade associations, and businesses. The Cannabis Regulators Association (CANNRA) is a national nonpartisan organization of government cannabis regulators that provides policymakers and regulatory agencies with the resources to make informed decisions when considering whether and how to legalize and regulate cannabis.

Representatives from NCIA participated in the conference – NCIA Board Members Khurshid Khoja (Chair Emeritus) and Michael Cooper (Board Secretary), and we caught up with them in this blog interview to better understand the goals and outcomes of the event.


From a bird’s eye view, what was the overall goal of this conference? 

MC:  The conference was an opportunity for regulators from around the nation to hear directly from stakeholders on the current and future challenges that face these markets and different models of regulation to tackle them.  

KK: I’ll add that our own goals, as the current Policy Co-chairs for NCIA, were to better understand the priorities of state and local cannabis regulators across the country, and anticipate future developments in cannabis policy early on, so we could take that back to the NCIA membership and the staff – especially Michelle Rutter Friberg, Mike Correia, and Maddy Grant from our amazing government relations team.

Let’s talk about who was invited to participate in these panel discussions. From cannabis industry associations to those who regulate cannabis, who else was there?

KK: Michael and I each spoke on a panel. The other speakers included reps from federal trade associations, lobbyists, vendors, and ancillary companies who were helping to underwrite the event (along with NCIA). Given that CANNRA is a non-profit that doesn’t receive any funding from their member jurisdictions, and has a single paid full-time staff member, I thought they were still able to obtain a fairly diverse and interesting set of speakers at the end of the day – including NCIA Board and Committee alums Ean Seeb, Steve DeAngelo, Amber Senter and David Vaillencourt (representing the Colorado Governor’s Office, LPP, Supernova Women and ASTM, respectively), as well as folks from Code for America, Americans for Safe Access, and the Minority Cannabis Business Association, U.S. Pharmacopeia, NIDA, the CDC, and the Alcohol and Tobacco Tax and Trade Bureau, representatives of the pharmaceutical, hemp, tobacco and logistics industries, and public health officials.

Were there any organizations or sectors of the industry that were not in attendance, whether they weren’t invited or just didn’t participate, and why is it important to note the gaps of who was not represented?

MC:  No licensed businesses were invited. Instead, organizations that represent industry members were invited. As a result, we felt it was crucial to inform these discussions with the perspective of the multitude of small and medium-sized businesses otherwise known as Main Street Cannabis that have built this industry and continue to serve as its engine.    

KK: Sadly, we did not have an opportunity to hear from members of the Coalition of Cannabis Regulators of Color. I can’t speak to why that was, but it was unfortunate for us nonetheless. And while we had some public health officials there, I know that CANNRA Executive Director Dr. Schauer would have preferred to see more of them in attendance.

Across the spectrum of policy and regulations and legislative goals, what topics were covered in the panel discussions across the two-day conference?

KK: We covered a ton, given the time we had, including the federal political and policy landscape; interstate commerce; the impact of taxes on the success of the regulated market; social equity and social justice; preventing youth access; regulation of novel, intoxicating and hemp-based cannabinoids; the prospects for uniform state regulations; technological solutions to improve compliance and regulatory oversight; and delivery models.

What information or perspectives did NCIA bring to the panel discussions that were unique from other participants? What does NCIA represent that is different from the other voices at the event?

MC:  There really are a wide variety of perspectives on how best to regulate this industry. We felt it was essential that NCIA give a voice to Main Street Cannabis, the small businesses that so many adult-use consumers and medical patients rely upon. We emphasized, for example, that these are often businesses that cannot simply operate in the red indefinitely, but provide essential diversity (in the background and life experience of operators as well as in product selection and choice). NCIA wants to make sure that the future of cannabis isn’t simply the McDonalds and Burger Kings of cannabis. There are times when consumers want that, but there are also times when they want something unique and different. And it’s crucial that policy not destroy the small and medium-sized, frequently social equity-owned, businesses that provide those choices.

What else was interesting to you about this gathering of minds? Were you surprised by anything, or was there anything you heard that you disagreed with?

MC: There are a ton of different perspectives and approaches to cannabis, and that’s no surprise to anyone who has followed these issues closely because the tensions are very clear in the policy debates that are ongoing. 

As the voice for the industry, we sought to urge an approach grounded in reality. Americans want these products. That’s clear from the ballot box and public polling. The question should be about how to encourage Americans to purchase regulated, tested versions of these products. 

KK: There was definitely stuff we didn’t agree with – some of it from folks that we otherwise largely agree with. For example, our good friend Steve Hawkins of the USCC shocked a few of us in the audience when he seemed to indicate some receptivity to re-scheduling cannabis on an interim basis, rather than moving to de-scheduling immediately. I think that while rescheduling may benefit scientific research and pharmaceutical development, it could ring the death knell for Main Street Cannabis businesses. NCIA has consistently advocated for de-scheduling rather than re-scheduling.

After two days of panels, did anything new come through these discussions, or were any accomplishments achieved?

KK: I think there’s a growing recognition that addressing social equity solely through preferential licensing and business ownership for the few isn’t enough and that the licensing agencies and regulators that execute social equity policies have a very limited (and often underfunded) arsenal to comprehensively redress the harm caused by federal, state and local governments prosecuting the war on drugs. In my remarks, I said it was time for us to start discussing additional forms of targeted reparation and had a number of regulators approach me afterward to continue the discussion. Candidly, I expected my remarks to fall on deaf ears. They didn’t. That was very encouraging.

MC: There was definite progress. At the end of the day, these cannabis regulators are working hard to try to get this right. But in such a new area, and with so many competing perspectives and voices, their job isn’t easy. We were heartened to see the level of engagement from regulators on these points, including follow-ups to get more information on some of the pain points we identified for small and equity businesses in the industry. 

It was definitely rewarding to provide NCIA and our members’ perspectives in a forum like this, and we’re looking forward to continuing to further strengthen NCIA’s relationship with CANNRA and regulators around the country.  

Making History In Congress, Thanks To NCIA Members!

by Aaron Smith, NCIA’s CEO and Co-founder

History was made today as Senate Majority Leader Chuck Schumer (D-NY) along with Senators Ron Wyden (D-OR) and Cory Booker (D-NJ) introduced the Cannabis Administration and Opportunity Act which would finally remove cannabis from the federal Controlled Substances Act and begin the process of federal regulation.

For the last year, NCIA has been working behind the scenes to ensure this landmark legislation not only ends prohibition but also creates an environment where small and medium-sized businesses can thrive under national legalization. These businesses – who we now call “Main Street Cannabis” – are the heart of our industry and we’re proud to have been giving them a seat at the table in our nation’s halls of power for over 12 years.

We will continue working with our allies in the Senate to advance this bill and advocate for some necessary amendments to better ensure that small, equity, and women-owned businesses (in particular) are well-positioned to thrive after the end of federal prohibition.

We would not be where we are today if not for your support which has allowed us to effectively represent the interests of small businesses like yours in the halls of Congress and in the court of national public opinion.

I hope you’ll join us in making national legalization a reality by making your voice heard at our upcoming 10th Annual Cannabis Industry Lobby Days in Washington, D.C. September 13 & 14! 

Thanks to your membership, NCIA’s government relations staff represents Main Street Cannabis in D.C. every day but Lobby Days is your chance to show up and tell your unique story to our nation’s lawmakers, firsthand. 

Lobby Days is also the best opportunity to connect with your fellow industry leaders who are truly invested in the future of cannabis and sensible national policy. Please register today so you don’t miss out on making history with us! Reach out to my colleague Madeline Grant to learn more about how you can be as impactful as possible at this year’s Lobby Days. 

Thanks, as always, to all NCIA members for their support of the cannabis industry. If your company is not yet a member of NCIA, now’s the time to join and have your voice heard in the halls of Congress.

Watch this video update with Aaron Smith and Michelle Rutter Friberg:

Video: NCIA Today – June 18, 2021

NCIA Deputy Director of Communications Bethany Moore checks in with what’s going on across the country with the National Cannabis Industry Association’s membership, board, allies, and staff. Join us every Friday here on Facebook for NCIA Today Live.

Member Blog: Is 2021 the Year that Brings Normalcy to Cannabis?

by Jimmy Young, founder of Pro Cannabis Media

Thanks to Democracy and the grassroots efforts of cannabis advocates from coast to coast, there are now 15 holes in the cannabis prohibition wall (legal states), and 36 cracks (medicinal programs). So when will that wall come down and how fast? More importantly, what will the industry look like when the dust settles? 

Over the past few weeks, cannabis media pundits from all over the world have chimed in with their predictions for 2021. (Some even pontificated before knowing the results of the Georgia State runoffs in the Senate.) 

With President Joe Biden now in the White House and the Democrats controlling both houses of Congress, cannabis advocates are wondering when, and if, we will see federal legalization of cannabis in 2021. Will it succeed or will our dutifully elected politicians do something that will derail the will of the people during this Green Wave of reform? 

Already, a Republican congressman from Florida, Greg Steube, decided to file the first draft of reform to a committee that will move cannabis from schedule 1 to schedule 3 on the Department of Justice list of “controlled substances.”

But for many, this does not go far enough. I recently interviewed the Media Relations Director of NCIA, Morgan Fox, who told me, “It’s not something the NCIA or other Cannabis advocacy groups is going to support….we are all focused on de-scheduling, (this draft) it just doesn’t go far enough.” 

So what position are lobbyists in Washington, D.C. taking now that their arguments for reform may find a more supportive group to talk to? What is the best thing for the industry? What’s the right thing to do? 

I also interviewed Michael Correia, the Director of Government Relations for NCIA, who explained that the target should be for full legalization, but that at the heart of the issue, there is something more important that needs to be dealt with – racism. In my interview with him, he said, “…let’s just stop arresting people for this. Stop arresting people in this war on drugs so no one’s lives are ruined because they’re consuming a natural plant, that 30 plus states have said, Hey, we’re okay with this. There shouldn’t be these differences. So just stopping, arresting these people, and then worrying about what’s the next step?”

Why does he feel so strongly about this? The evidence is overwhelming that law enforcement has used simple possession as a profiling tool to fill our privately run prisons with black and brown people over mere cannabis possession. “The vast majority of these arrests (92%) were for simple possession of the drug. 500,395 of [the 545,602] arrested for cannabis [crimes] were simply found [to be] in possession of cannabis.”

So are you convinced now that cannabis, a plant, is not illegal because it is considered a drug, but rather because of a racist system and the fact it can be used as a means to profile and jail black and brown people? Do you want more evidence of the racial bias in cannabis arrests? Check out this 2020 report on the racial makeup of those simple possession “crimes.”

A recent report from the ACLU looked at data from 2018 and found that black people were 3.6 times more likely to be arrested for cannabis possession than white people.

This is despite both groups use cannabis at similar rates.

Even in western states with recreational cannabis laws, black people were 1.5-1.8% more likely to be arrested for having cannabis.” Emily Earlenbaugh, Forbes 

So what’s the 2021 plan for lobbyists, policymakers, and elected officials? What exactly does this industry look like if one of the following changes happens in the next year or two?

  • Cole Memo reinstated
  • SAFE Banking
  • Rescheduling 
  • De-scheduling
  • The MORE Act 
  • Science and Research Grants

Each one of those changes is not only positive for this young industry but will have a ripple effect that will impact other industries. The trickle-down effect for any of these changes being implemented will impact the private prison system, banking, and financial markets, big alcohol, big pharma, social equity, expungement of past convictions, interstate commerce, and the international markets.

The cannabis lobbyists know that with Democrats in charge of the direction of the Congress over the next two years, this is their opportunity for serious reform. After all, the House passed a legalization bill, the MORE Act, in December of 2020. In 2019, the previous year, the SAFE Banking Act was also approved by the House, but neither even got to the floor of the Senate because of the then-Majority Leader Mitch McConnell’s anti-marijuana stance. 

2021 is now upon us, and “grown-ups are now back in charge in D.C.” However, many advocates I’ve talked with are understandably wary and skeptical about the Federal Government dictating governance of this industry if cannabis is federally legalized and falls under the control of the alcohol and Beverage Commission. 

Most cannabis advocates can at least agree that cannabis should be removed from the schedule that was created by the Controlled Substances Act in 1971. This change alone would allow banks to do business with the cannabis industry and allow for the removal of the restrictive 280E tax code that has limited the profit margins of already existing businesses. 

Here are some links to other predictions from leading media sources about what cannabis reform democratic control of Congress may lead to:

Marijuana Moment: What The New Democratic-Controlled Senate Means For Federal Marijuana Legalization In 2021

Politico: Democratic-led Senate could clear a path to marijuana legalization

Forbes: Democrats Win The Senate: The Impact On Marijuana Policy

So after reading all this information, here’s what I think will happen over the next four years. 

First Year: Cannabis gets removed from the Controlled Substances Act schedule

Second Year: Decriminalization and expungement of cannabis possession crimes with banking reform

Third Year: Interstate commerce 

Fourth Year: Full Federal legalization, international export markets open

It’s 2021, the year of the cannabis plant as a political issue is here and reform is as pungent as the odor of this amazing plant. Stay tuned, this will be an ongoing theme in D.C. politics this year as we all hopefully witness another chapter in the historic end to prohibition. 


Jimmy Young is the founder of Pro Cannabis Media. An Emmy Award-winning talk show host from New England, and a resident of Massachusetts who holds a medical card after 4 major surgeries in 22 years.

The founder of Pro Cannabis Media is the current host of In The Weeds with Jimmy Young, a weekly podcast distributed over the CLNSMedia.com, site, iTunes, Spotify, Googlecast among others. In July of 2019, he teamed up with the founder of Cannabis.net, Curt Dalton, to host a two hour live monthly Weed Talk Show where the two Massachusetts natives have interviewed some of the biggest names in Cannabis, like Steve DeAngelo, Bruce Linton, and Tommy Chong. Locally local cannabis advocates and representatives from the medical establishment in the Bay State have all appeared on that show that is now being distributed nationwide. Young also produces a weekly news video, called News Dabs, highlighting and commenting on the biggest stories around the world in the emerging cannabis universe.

Re-Cap of House Judiciary Hearing on Marijuana Laws in America

On Wednesday, for the first time ever, lawmakers in the House of Representatives held a hearing to address the disproportionate ways in which marijuana prohibition has negatively impacted people of color and marginalized communities. The hearing, entitled “Marijuana Laws in America: Racial Justice and the Need for Reform,” was called by the House Judiciary Subcommittee on Crime, Terrorism, and Homeland Security and exclusively featured testimony from witnesses in favor of sweeping cannabis policy reforms.

Notably, none of the members of the subcommittee or witnesses advocated for keeping cannabis illegal.

Rep. Tom McClintock (R-CA) participated as acting subcommittee Ranking Member, and began his opening statement by saying, “Marijuana decriminalization may be one of the very few issues upon which bipartisan agreement can still be reached in this session.” He added, “it ought to be crystal clear to everyone that our laws have not accomplished their goals.”

Chairwoman of the subcommittee, Rep. Karen Bass (D-CA), also gave strong opening remarks: “The collateral consequences of even an arrest for marijuana can be devastating. These exclusions create an often permanent second class status for millions of Americans. Like drug war enforcement itself, these consequences fall disproportionately on people of color.”

While there seemed to be a consensus on reforming our outdated cannabis laws, how to reform them was more murky than anything else. Essentially all of the Republicans who spoke during the hearing iterated their support for the Strengthening the Tenth Amendment Through Entrusting States (STATES) Act, while Democrats on the subcommittee stressed the need for reforms that address equity, inclusivity, and diversity — which the STATES Act does not address in any way.

NCIA’s written testimony, submitted at the hearing by Rep. Steve Cohen (D-TN), urges Congress to remove cannabis from the Controlled Substances Act (commonly known as de-scheduling); to enact legislation repairing the damage prohibition has inflicted on communities of color; and to begin the process of regulating cannabis products at the federal level. However, NCIA also recognizes that the STATES Act (and other incremental reforms) deserve the support of the industry, given that it addresses many of the problems plaguing cannabis businesses today.

On behalf of the largest and most-diverse membership base of any cannabis trade association in the U.S., NCIA’s team in D.C. is continuing to work with allies in Congress to end federal prohibition and replace it with federal jurisdiction that benefits an inclusive, diverse, and legal cannabis industry.

NCIA thanks our nearly 2,000 members who have made this progress possible. If your business is not yet a member of NCIA, please join the movement today.

Top Ten Reasons NCIA Supports De-Scheduling Cannabis

Today, the House Judiciary Committee (Subcommittee on Crime, Terrorism and Homeland Security) is holding a hearing on marijuana policy reform proposals and related social equity provisions. While NCIA supports the STATES Act and other incremental approaches to reform, we strongly prefer a longer-term approach that includes de-scheduling cannabis and the inclusion of robust social equity provisions. Let’s get this right the first time around.

Below are the top ten reasons to support de-scheduling: 

1. De-scheduling is good public policy because cannabis should not be classified alongside dangerous drugs like heroin and methamphetamines, and cannabis has proven medicinal properties and is safer for adults than alcohol and many over-the-counter medicines.  

2. De-scheduling automatically solves the banking problems plaguing the cannabis industry and automatically cures issues related to the unfair tax provisions imposed by 280E.

3. De-scheduling removes many of the roadblocks in the way of creating an industry that prioritizes and promotes social equity and inclusion.

4. De-Scheduling would allow for cannabis to be transported across state lines in accordance with interstate trade compacts, opening opportunities for licensed growers to get their product into more markets and to stabilize supply and demand issues currently facing some state markets.

5. De-scheduling takes regulatory authority away from the DEA and creates opportunities for the federal government to regulate marijuana through FDA and Treasury with regimes that are more appropriate, given the relative harm of cannabis compared to other adult products.

6. De-scheduling immediately makes federal research and grants possible. 

7. De-scheduling immediately changes current immigration policy that prohibits people with “bad moral character” from applying for citizenship because of their work in the cannabis industry. 

8. De-scheduling allows for the provision of bankruptcy protection for cannabis-related businesses.

9. De-scheduling would allow veterans access to plant-based medicine and retention of VA benefits if they choose to use medicinal marijuana.

10. De-scheduling still allows for state autonomy while simultaneously providing for federal continuity.

 

New Bills: Marijuana Justice Act, REFER Act, and RESPECT Resolution

by Michelle Rutter, NCIA’s Government Relations Manager

Last week, multiple pieces of legislation and one resolution were introduced to address social equity, diversity, and fairness in the cannabis industry.

The Marijuana Justice Act was introduced in both the House and the Senate by Cannabis Caucus Co-Chair Rep. Barbara Lee (D-CA) and 2020 presidential-hopeful Sen. Cory Booker (D-NJ), respectively. Last session, the House version garnered 43 cosponsors, while the Senate had six in the last session. It is currently the most far-reaching and comprehensive cannabis policy reform legislation being considered in Congress.

The Marijuana Justice act would not only remove cannabis from the Controlled Substances Act schedule and eliminate federal criminal penalties for its possession, cultivation, manufacture, import, and export, but also includes several provisions to address the historically discriminatory enforcement of cannabis laws and sentencing. All federal cannabis use or possession convictions would be expunged under the measure, and a special grant program would be created through the Department of Housing and Urban Development to reinvest in communities that have been most impacted by prohibition. It would also allow Congress to withhold federal funds from states that exhibit racially disproportionate arrest and incarceration rates under their own cannabis laws.

In addition to this bicameral piece of legislation, Rep. Lee also introduced the Restraining Excessive Federal Enforcement & Regulations of Cannabis (REFER) Act in the House. The REFER Act “prohibits the use of funds made available by Congress to a federal department or agency” to intervene in state-legal cannabis programs or penalize financial institutions that service the cannabis industry.

Rep. Lee also introduced the Realizing Equitable & Sustainable Participation in Emerging Cannabis Trades (RESPECT) Resolution, which recognizes that the people most harmed by the racially disparate enforcement of prohibition benefit the least from some of the state and local policies regulating the cannabis market. The resolution urges officials and lawmakers to implement a series of practices when granting licenses for legal cannabis businesses to improve access for these communities to the nascent industry, such as minimal application and license fees, no caps on the number of licenses, increased local control of the licensing process, and removing broad felony and cannabis convictions as automatic disqualifiers for participation.

NCIA is proud to include the Marijuana Justice Act as one of our priority pieces of legislation, and we look forward to working with members of Congress to build support for the bill.

If you’re interested in lobbying in support of this bill, or any others, make sure you register for NCIA’s 9th Annual Cannabis Industry Lobby Days in Washington, D.C. on May 21-23 so that you can tell congressional offices your personal story. There’s strength in numbers, and we can’t do it without you!

Three New Bills In The 116th Congress

by Michelle Rutter, NCIA’s Government Relations Manager

The 116th Congress just began, but there’s already been a flurry of new cannabis bills filed. Let’s take a look at some of the first pieces of legislation to be filed in the House of Representatives on the topic:

Bill: H.R. 420: Regulate Marijuana Like Alcohol Act
Introduced by: Congressman Earl Blumenauer (D-OR)
What It Does: This bill was introduced in the 115th Congress by now-Governor Jared Polis (D-CO). Filed in the 116th Congress by Rep. Blumenauer, this bill would remove cannabis from the Controlled Substances Act entirely. It would also transfer cannabis enforcement authority from Drug Enforcement Administration to a renamed Bureau of Alcohol, Tobacco, Marijuana, Firearms and Explosives. Both shipping or transporting cannabis into states that have not legalized it would continue to be prohibited. Last year, the bill garnered 26 cosponsors.


Bill:
H.R. 493: Sensible Enforcement of Cannabis Act
Introduced by: Rep. Lou Correa (D-CA)
Additional cosponsors: Reps. Steve Cohen (D-TN), Don Young (R-AK), Dina Titus (D-NV), Matt Gaetz (R-FL), Eleanor Holmes Norton (D-DC), Salud Carbajal (D-CA), Peter DeFazio (D-OR), Katie Hill (D-CA)

What it does: This bipartisan bill seeks to enshrine the now-rescinded Cole Memo into federal law. The legislation directs the Attorney General, in enforcing the provisions of the Controlled Substances Act relating to cannabis, to focus on certain enforcement priorities that were outlined in the Cole Memo, such as:

  • Distribution of marijuana to minors.
  • Revenue from the sale of marijuana from going to criminal enterprises, gangs, and cartels.
  • Diversion of marijuana from States where it is legal under State law in some form to other States.
  • State-authorized marijuana activity from being used as a cover or pretext for the trafficking of other illegal drugs or other illegal activity.
  • Violence and the use of firearms in the cultivation and distribution of marijuana.
  • Drugged driving and the exacerbation of other adverse public health consequences associated with marijuana use.
  • The growing of marijuana on public lands and the attendant public safety and environmental dangers posed by marijuana production on public lands.
  • Marijuana possession or use on Federal property.

This bill was previously introduced at the very end of the 115th Congress. NCIA is proud to have endorsed this legislation.


Bill:
H.R. 127: Compassionate Access, Research Expansion, and Respect States (CARERS) Act of 2019
Introduced by: Rep. Steve Cohen (D-TN)
Additional cosponsors: Reps. Don Young (R-AK) and Matt Gaetz (R-FL)

What it does: This bill would amend the Controlled Substances Act to state that regulatory controls and administrative, civil, and criminal penalties do not apply to a person who produces, possesses, distributes, dispenses, administers, tests, recommends, or delivers medical marijuana in compliance with state law. The bill also excludes “cannabidiol” (CBD) from the definition of “marijuana” and limits the concentration of delta-9-tetrahydrocannabinol (THC) in CBD to 0.3 percent on a dry weight basis. The bill also directs the Department of Health and Human Services (HHS) to terminate the Public Health Service’s interdisciplinary review process that is used to evaluate applications for medical marijuana research, opening up a multitude of research opportunities. The bill requires the DEA to license manufacturers and distributors of marijuana for medical research;, for HHS to register practitioners to conduct research, and for the Department of Veterans Affairs (VA) to authorize VA health care providers to provide recommendations and opinions to veterans regarding participation in their states’ cannabis programs.

Many more (possibly dozens!) of cannabis bills are expected to be filed in the next few months. NCIA will continue to track these pieces of legislation and endorse critical cannabis reforms on Capitol Hill.

 

The Marijuana Freedom and Opportunity Act (Finally) Makes Its Debut

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.

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.”

 

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,
log on to www.TheCannabisIndustry.org/LobbyDays2018 and register today.

Cannabis Caucus Takes Action!

by Brooke Gilbert, Director of Events and Education

At the end of October we wrapped up the fourth and final 2016 installment of our Quarterly Cannabis Caucus series. Thank you to the more than 700 attendees who joined us in cities across the United States throughout the month of October to network and to effect change on the local and national level!

We have a lot to be thankful for with the recent wins for cannabis in California, Nevada, Maine, Massachusetts, Montana, Arkansas, North Dakota, and Florida. However, a lot of uncertainty still lies ahead with the new administration. One thing we do know for certain is the Rohrabacher-Farr amendment currently offers the medical cannabis industry some amount of protection. This amendment bans the Department of Justice from spending money to prevent the implementation of state-level medical marijuana programs, in addition to removing funding for federal medical cannabis raids, arrests, and prosecutions in states where these programs are legal.

This important amendment needs to be reauthorized each year to stay in effect. At the end of September, Congress passed a continuing resolution to fund the government through December 9th. This means that in December, Congress will have to return and pass a funding bill for future government spending.

Throughout the final installment of our quarterly cannabis caucuses we urged attendees to take action by contacting your elected officials and asking them to sign on to a letter supporting the re-authorization of the Rohrabacher-Farr amendment. If you didn’t take action on-site at the caucus, we encourage you to take action now and contact your representative here:

TheCannabisIndustry.org/CallCongress

Weren’t able to make it to one of our caucuses in October? Check out the photo highlights below, and download the resources provided at the event on our Cannabis Caucus Resources page.

Thank you to our sponsors for making the final installment of our 2016 Quarterly Cannabis Caucuses possible!

Premier Sponsors
Atman Market
Cannasure Insurance Services
Canna Advisors
Guardian Data Systems
LivWell Enlightened Health
MJ Freeway
THC Design
urban-gro

Supporting Sponsors
CannaRegs
CRichter ~ HR Consulting

Media Partners
DOPE Magazine
Sensi Media

Event Hosts
California Cannabis Industry Association
Illinois Cannabis Industry Association
Marijuana Industry Trade Association of Arizona
Meadow
Newman Ferrara LLP

Be on the lookout for 2017 Quarterly Cannabis Caucus dates in the coming weeks. See you at the next Caucus in 2017!

DEA Rescheduling Announcement: What It Means, And What You Can Do

As the announcement that the U.S. Drug Enforcement Administration (DEA) will reject petitions to “reschedule” marijuana leaked to the press last night, NCIA executive director Aaron Smith issued the following statement calling on Congress to remove marijuana from the Controlled Substances Act:

“DEA’s decision flies in the face of objective science and overwhelming public opinion.”

2000px-US-DrugEnforcementAdministration-Seal.svg“The reality is that half of U.S. states have already passed effective laws allowing patients legal access to medical cannabis, and it is changing lives,”

“Continuing marijuana prohibition forces critically ill people to suffer needlessly, leaves life-changing treatments undeveloped, and keeps patients and providers in limbo between state and federal laws.

“We appreciate the positive step – however small – of opening up a few additional avenues for medical marijuana research. But patients deserve more, and Congress should help them by removing marijuana from the Controlled Substance Act, allowing state programs and medical research to move forward without interference.”

NOW WHAT?

This DEA decision presents an opportunity to elevate the conversations we are having with both the public and Members of Congress. It’s important that we continue to tell our stories about the benefits of state-regulated marijuana industries and the need to end federal marijuana prohibition.

Now, more than ever, is a chance to raise our voices in unison to make our issues undeniably heard.

We encourage you to get involved with Congress at home by attending a town hall meeting, inviting Members of Congress or their staff on a tour of your business, and scheduling meetings with your Member’s district office.

For advice, help, or materials to assist you, please contact NCIA’s Washington, D.C. office by emailing michelle@thecannabisindustry.org.

If your business is not yet a part of the movement, please join NCIA today.

Senate Subcommittee Just Says Yes… To A Hearing

by Michelle Rutter, Government Relations Coordinator

Earlier this month, the Senate Judiciary Subcommittee on Crime and Terrorism held a hearing entitled ”Researching the Potential Medical Benefits and Risks of Marijuana,” which was presided over by Sens. Graham (R-SC), Whitehouse (D-RI), Klobuchar (D-MN), Grassley (R-IA), and Blumenthal (D-CT). Witnesses included Sen. Kirsten Gillibrand (D-NY) and Sen. Kirsten Gillibrand (D-NY), federal officials from NIDA (National Institute on Drug Abuse), NIH (National Institute of Health), and the FDA (Food and Drug Administration), and members of the medical and legal community. For more information on the hearing and the witnesses, click here.

The first panel included Sens. Gillibrand (D-NY) and Booker (D-NJ), who both testified on the benefits medical cannabis can provide and noted that they are both original co-sponsors of the Compassionate Access, Research Expansion, and Respect States Act (S. 683), better known as the CARERS Act. Some of the key points that the Senators mentioned during the hearing included removing cannabis from its designation as a Schedule I drug, dismantling NIDA’s monopoly on cannabis used for research, and the urgent need to ease restrictions to allow for more research.

The next panel was comprised of two government agency officials: the Director of the Division of Extramural Research at the National Institute on Drug Abuse at the National Institutes of Health, and a doctor who is Deputy Center Director for Regulatory Programs at the FDA. Both panelists repeatedly stressed the importance of continued research into the therapeutic and medicinal benefits of cannabis, as well as the development of cannabis-based drugs. The FDA official also highlighted that the DEA is currently reviewing a recommendation on cannabis’s designation as a Schedule I drug, and the decision is pending.

The third panel included two doctors and a lawyer representing the DEA. The first doctor noted that THC and CBD do have therapeutic value but stressed the need for more research to determine if/how to mitigate any negative side effects of medical cannabis use. The second doctor on the panel is a well-known cannabis opponent, whose testimony sounded more like “reefer-madness” than a Senate hearing on cannabis in 2016. The lawyer present gave a moderately short statement, but did state that the DEA regulations around Schedule I drugs already provide a great deal of flexibility for research and can and are waived to allow legitimate studies and that the reclassification of cannabis to Schedule II would have little impact on the barriers to research – a statement that most in the cannabis community would strongly disagree with.

During questioning, Sen. Graham (R-SC) asked if the witnesses believed that cannabis should be re-scheduled as a Schedule II drug. Both the FDA official and the NIDA/NIH official weighed in, and with the same conclusion: more research is needed in order to make that determination. Chairman Graham also asked how to best facilitate medical cannabis research, which was answered by the DEA’s lawyer, who responded that the “flexibility” in the regulatory system could allow for it.

What does it mean?

Past Congressional hearings regarding cannabis have typically focused on the harms, not the benefits, of marijuana. As such, it’s a positive sign that the Chairman of the Senate Judiciary Subcommittee on Crime and Terrorism, Lindsey Graham (R-SC), held a hearing on the potential therapeutic benefits of medical cannabis. The main takeaway from the hearing was the desire from all parties – Senators, government officials, and medical professionals alike – for more research on cannabis, its compounds, and its effects.

Regardless, this hearing shows the progress that the industry has made in Congress and the momentum building nationwide behind the cannabis movement.

 

Obama on the problem of criminalizing marijuana use | CNN

Waukesha, Wisconsin – When it was pointed out that the President’s remarks to The New Yorker magazine about marijuana – which he described as a bad habit but not any worse for a person than alcohol – contradict the administration’s official policy on marijuana, Obama stood by his views.

The President declined to say whether he would support removing marijuana as a “Schedule One” narcotic, a classification that includes heroin and ecstasy.

“I stand by my belief based on the scientific evidence that marijuana for casual users, individual users, is subject to abuse, just like alcohol is and should be treated as a public health problem and challenge,” Obama said in an exclusive interview with CNN.

Read more: Obama on the problem of criminalizing marijuana use | CNN

Barack Obama Says Marijuana Classification Change Job For Congress | TIME

President Barack Obama says in a new interview that that it’s up to Congress to remove marijuana from the federal government’s list of the most serious narcotics, implying but not explicitly saying that he might support such a move.

In an interview with CNN that aired Friday, Obama was pressed on recent remarks he made to the New Yorker that marijuana is no more dangerous than alcohol, and on whether he would push to remove pot from the Drug Enforcement Agency’s list of so-called “schedule I” narcotics.

Read more: Barack Obama Says Marijuana Classification Change Job For Congress | TIME

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