Video Newsletter: We’re going to D.C. in May, and so should you…
One of our most impactful events of the year is just two months away, and NCIA wants you to be there with us in Washington, D.C.
In this month’s video newsletter, hear from NCIA executive director Aaron Smith, as well as NCIA members Steve DeAngelo of Harborside Health Center, Jaime Lewis of Mountain Medicine, Brian Caldwell of Triple C Collective, and Ean Seeb of Denver Relief, as they share their stories about joining NCIA on Capitol Hill for our annual Cannabis Industry Lobby Days.
Register today for NCIA’s 6th Annual Cannabis Industry Lobby Days, May 12-13.
To make the most out of the Lobby Days experience, register early so that we can begin the process of setting up meetings for you on the Hill. Members who register before April 30th will be entered to win admission and travel expenses for two at NCIA’s Cannabis Business Summit & Expo, including airfare and lodging.
Guest Post: 2015 Cannabis Industry Market Analysis
2015 was a very exciting time in the cannabis industry. According to public opinion polls conducted in the U.S., between 51% and 58% of respondents were in support of legalization. The highest level of support comes from the age range of 18-34, showing a staggering 71% supporting full legalization.
In 2015, several states voted for some form of cannabis proliferation, and many more have taken decriminalization measures. With a year of adult-use retail cannabis now completed in Colorado and Washington, and the start of full legalization in Oregon, the tide seems to be slowly but steadily shifting.
Reflecting back on 2015, here were a few of the notable developments that resonated throughout the cannabis industry.
Emerging Markets
Currently there are twenty-three states and the District of Columbia that have laws legalizing cannabis usage in some form. Four states have completely legalized cannabis use for adults 21 and older.
On the medical side, several states opened their first cannabis dispensaries to the public in 2015. Nevada, Massachusetts, Minnesota, Delaware, and Illinois were among these states. Though sales have been slow going for various reasons, 2016 should be a landmark year for legalization in many of these newly developing cannabis markets.
Adult-Use Cannabis Boom
Colorado, Washington, Oregon, and Alaska have all completely legalized the possession of cannabis. On January 1, 2014, Colorado opened its first adult-use cannabis stores, which effectively combined their medical and retail markets. Their combined medical and adult-use system generated more than $699 million in gross revenue in 2014, with approximately $76 million in tax revenue collected. Washington, by comparison, opened its adult-use market in July of 2014 and finished the year with $64 million in total sales and $16 million in tax revenue collected.
The revenue figures for 2015 have eclipsed the previous year’s marks substantially. Colorado gross sales came in just over $996 million for 2015, with $135 million in tax revenue collected from close to 800 stores, servicing about 5.5 million residents.
Washington, by comparison, generated more than $357 million in retail sales, with more than $115 million going to the state as an excise tax. This revenue was generated at approximately 205 licensed stores, servicing 7 million residents.
Meanwhile, Oregon started a partial foray into adult-use cannabis sales by utilizing the existing network of medical dispensaries selectively approved for retail sales of cannabis flowers to anyone 21 and older. In July of 2016, Oregon will completely open its adult-use market. Alaska, with no medical dispensaries or infrastructure, will likely take much longer to develop as a viable market.
This chart references data from the Washington Liquor Control Board as well as The Cannabist website.
2016: Legalization Abounds
With the level of success, both fiscally and socially, that was achieved in relatively small states, it should be expected that 2016 will be a big year for ballot measures legalizing cannabis. There are several states that are gearing up for potential 2016 ballot initiatives. Massachusetts, Maine, Missouri, Ohio, Nevada, California, and Hawaii are the states that seem likely to make it to a vote.
Northeast
In the Northeast, there have been several developments causing optimism throughout the region. New England has taken a very progressive path to legalization. Every state has a medical cannabis market and has decriminalized possession of small amounts of cannabis with the exception of New Hampshire. New Hampshire has made at least six attempts to get decriminalization measures passed, but so far these initiatives have been unsuccessful getting past the State Senate. Ironically, four dispensaries are set to open in 2016 for medical patients that meet the qualifying conditions.
Midwest
Ohio had a ballot measure to legalize cannabis late in 2015. The legislation featured a basic monopoly on production being designated to 10 predetermined groups comprising wealthy residents. Unsurprisingly, there was overwhelming opposition, with the proposed legislation getting shot down by a margin of almost 2:1 against. We’ll likely see a second attempt to pass a legalization measure in 2016.
West Coast
With Washington and Oregon taking legalization measures, California is the next in line. At the end of the session in 2015, Californians passed the Medical Marijuana Regulation and Safety Act. This piece of legislation sets up the regulatory framework for a state-recognized medical marijuana industry. California, being one of the largest states, with a population of over 38 million residents, has had a vibrant quasi-grey market with an estimated 2,000 stores operating within the state. Despite the lack of reported sales figures, estimates of the California market are conservatively $3 billion to $5 billion annually. Should this market be legalized and regulated at some level, this could generate an estimated $450 million to $750 million in tax revenue, should the state impose a 15% tax rate.
2016 should be another historic year for the cannabis industry. With public opinion steadily growing in support of legalization, and the hysteria of an election year, it would not be surprising to see cannabis proliferation take the forefront in the national conversation.
Jim Makoso, Vice President of Lucid Oils
Jim Makoso is an entrepreneur in the cannabis industry. He joined Vuber Technologies as one of the original investors in February 2014. He is currently an Advisory Board Member and shareholder responsible for guiding strategic development. January 2015, Mr. Makoso founded Lucid Labs and Lucid Oils. He currently holds the position of Vice President and is responsible for strategic partnerships and business development.
Editor’s Note: In January, Ean Seeb, who serves on the Board of Directors for NCIA and is co-founder of Denver Relief and Denver Relief Consulting, coordinated with NCIA’s Director of Government Relations Michael Correia to arrange personal meetings with congressional offices in Washington, D.C.
Ean Seeb speaks at NCIA’s Policy Symposium in 2015
In December, while planning for a January business trip to Washington, D.C., I realized that I should take the opportunity to use some downtime to lobby Capitol Hill offices on issues affecting the cannabis industry. I reached out to NCIA’s Executive Director Aaron Smith and Director of Government Relations Michael Correia and announced my intention. I was amazed at their responsiveness and support for my idea.
The whole planning process was quite easy. I let them know the date I was available and the focus of my trip and let the D.C. office coordinate logistics. Denver Relief Consulting has business interests in Hawaii and I wanted to focus on that state’s Congressional delegation. My goals were to update offices on medical marijuana implementation in Hawaii and ask these offices to co-sponsor The Small Business Tax Equity Act of 2015 (S. 987 & H.R. 1855), which amends Internal Revenue Code Section 280E to allow cannabis businesses in compliance with state law to take standard tax deductions and credits relating to business expenses.
The trip went very smoothly. I met up with Michael the evening before our meetings to discuss issues and logistics. Although I am well-versed on issues affecting our industry, it was really informative for me to sit down with him and discuss our focus, strategy, and talking points. We were joined by NCIA Member Tae Darnell, CEO of Sensi Media, whose background on cannabis reform in Hawaii goes back many years and was a great asset to our meetings.
We visited offices in both the Senate and House of Representatives, and each office was very informed about cannabis issues, was responsive to our concerns, and asked insightful questions. I remember back in 2013 when NCIA held its 3rd annual member lobby days. During those meetings, staffers would drop their jaws and say “You’re here to talk about what?” It was almost humorous because, back then, staffers were still in shock that cannabis issues were being brought to them. This time, one of our meetings lasted a full hour! The reception from congressional offices has evolved significantly over the past five years, and that can be attributed to the work NCIA has done on the ground.
The National Cannabis Industry Association’s 5th Annual Lobby Days in Washington, D.C.
Although our meetings were with Democratic offices, who tend to be supportive of our issues, they were still not co-sponsors of legislation that would solve our 280E tax problems. The offices really appreciated tying the issue to Hawaii and answering questions specifically related to the state and how 280E will negatively affect their constituents. Each of the offices will discuss co-sponsoring legislation in the future, and our D.C. office will continue working with them to gain their support.
I did my homework with information provided by NCIA through newsletters, packets, and the website. An hour’s worth of studying on the front end made for some really powerful and effective meetings. As an NCIA member, it was personally and professionally fulfilling to be able to leave the Capitol thinking, “Today, I made some good progress on our issues, and for our industry, through the work done with these folks.”
We love nothing more than getting our members in front of lawmakers. That’s where change happens. https://t.co/kcdYFf6oJT
I wholeheartedly encourage other NCIA members not only to go to NCIA’s 6th annual Member Lobby Days in May — but also to go to D.C. on your own. The NCIA Government Relations team will be there with you every step of the way.
As I was leaving, Michael said, “Please tell other members who happen to be traveling to D.C. that we are available for any NCIA member, at any time, who wants us to coordinate personal meetings with congressional offices.”
If you are interested in contacting NCIA’s Government Relations department to schedule meetings with Members of Congress in Washington, D.C., please email Government Relations Coordinator Michelle Rutter at michelle@thecannabisindustry for more information.
State of the States: NCIA’s Affiliate Program
What is NCIA’s state affiliate program?
Over the last two years, members from particular states have approached us here at NCIA with the idea of forming state-focused affiliates. While NCIA’s mission is dedicated to federal policy change and the support of a national industry that is coordinated, sustainable, and responsible, we’ve begun a journey with a few of these dedicated members looking to do the same at the state level. Many of our members are already familiar with our state affiliates in California and Illinois.
NCIA dedicates its policy work to issues at the federal level, which informs the playing field for all 50 states. However, individual state cannabis markets have their own unique needs and challenges. An NCIA state affiliate is tasked with pursuing the same priorities as NCIA’s federal mission – advocacy, education, and community – but with a zoomed-in focus on state legislation and regulations, city ordinances, and local networking and business development. The combination of NCIA and a state affiliate gives members a powerfully unified voice in influencing legislation that is fair towards our industry.
How does the state affiliate program work?
Each state affiliate is an independent entity from NCIA, which elects its own board of directors and has its own decision-making processes. The affiliates are non-profit organizations, and dues are collected from members to be used for state advocacy work.
Membership dues for the state affiliate are split between the state affiliate and NCIA, and members of the state affiliate are automatically added to the rosters of NCIA’s national membership, although many members still choose to maintain separate memberships with both the state affiliate and NCIA.
Our state affiliates currently exist in the two most populous states with active medical marijuana programs in place: California and Illinois. We checked in with the leadership of each affiliate to hear more about their progress and activities at the state level.
CCIA’s Executive Director and co-founder is Nate Bradley, who works closely with their official lobbyist, Amy Jenkins, to influence fair legislation and policies for the ever-evolving cannabis industry. CCIA’s membership currently sits at 132 members and growing.
“In 2015, CCIA hosted numerous well-attended membership networking and educational events throughout the state,” says Bradley. “We also added new staff to our ranks. In the fall we hired a Membership Coordinator. This in turn greatly increased our ability to reach out and provide services to our current members and build new membership at the same time.”
CCIA focuses on the state regulatory structure for California’s cannabis industry, working to influence regulations for the medical marijuana industry in the state legislature. CCIA has endorsed the Adult Use of Marijuana Act (AUMA), a full legalization state ballot initiative being proposed for 2016.
“More than any other legalization measures competing for the 2016 state ballot, AUMA represents the collective input of California’s lawful medical cannabis industry,” said CCIA President Sean Luse, who is also COO of the nation’s longest continually operating medical cannabis dispensary, Berkeley Patients Group.
So what are CCIA’s plans for the upcoming year?
“CCIA has a lot of big plans for 2016,” says Bradley. “Currently we are planning on bringing a new deputy director, increasing the amount of events we hold, developing our local government outreach program, and increasing the amount of membership committees we have.”
“We will also be heavily involved in any legislation clean-up, tracking the regulatory rule-writing process, and last but not least, making sure we are actively involved in influencing any cannabis ballot initiatives that may go before voters in November.”
CCIA’s 2015 victories are listed here, along with details of the requests that were successfully negotiated and included in the Medical Marijuana Regulation and Safety Act.
Kayvan Khalatbari, co-founder of Denver Relief, serves on the board of directors for ILCIA and offers insight into the progress of its formation over the last year. “With all the work the National Cannabis Industry Association is doing to progress policy, advocacy, and education on the federal level, it’s important to have that same influence on the state level,” says Khalatbari.
“We’re working hard to create a model that is in line with NCIA’s mission and tone, but also considerate of the cultural and political nuances present in Illinois. We’ve assembled a great group to form our initial board of directors, which includes cultivation and dispensary operators, attorneys, lobbyists and ancillary service providers… in a sense, most stakeholders in this new and exciting industry. We intend on bringing aboard a doctor and a patient representative as well in this new year to ensure all voices relevant to the success of this industry have a seat at the table.”
Kayvan Khalatbari, co-founder of Denver Relief and board member of ILCIA
“With our current 25 members we have some room to grow, but have no doubt that will happen as we become more active and visible in 2016. Between assisting in the development and implementation of the NCIA local Cannabis Caucuses here in Chicago, assembling our own quarterly educational symposiums, networking events, and a lobby day in April, as well as collaborating with other groups to add qualifying conditions in the medical cannabis program, we’re poised to make a big push in having a positive and responsible influence as this industry gets off the ground here.”
“The bridge to our national partners at NCIA can only benefit that push forward and help ensure that cannabis businesses in Illinois are represented at all levels of government for years to come.”
Looking to get involved in one of our state affiliates? Visit their websites:
Video Newsletter: The Fourth Corner Credit Union Ruling and What You Can Do
We’re back with NCIA’s first video newsletter of 2016!
Earlier this month, a federal judge dismissed a lawsuit filed against the Federal Reserve by the Fourth Corner Credit Union, which had planned to provide banking services to the cannabis industry, but was denied a master account by the Fed.
Watch this month’s video to find out how the ruling affects NCIA’s work to pass a banking solution in Congress and how you can help by pressuring Members of Congress to pass the Marijuana Business Access to Banking Act.
Want your voice heard in our nation’s capitol on issues affecting the cannabis industry? Join us for our 6th Annual NCIA Member Lobby Days in Washington, D.C., on May 12 & 13, 2016.
CANNABIS MILESTONE: CONGRESS VOTES IN FAVOR OF THE ROHRABACHER-FARR AMENDMENT
by Michelle Rutter, NCIA Government Relations Coordinator
This week was a milestone in the cannabis industry.
On Wednesday, the U.S. House of Representatives debated the Commerce, Justice, and Science (CJS) Appropriations bill (HR 2578), which funds applicable government agencies for the upcoming FY2016. This year, there were four cannabis-related amendments under consideration: the Rohrabacher-Farr medical marijuana amendment, the McClintock-Polis adult-use marijuana amendment, the Bonamici-Massie industrial hemp amendment, and the Perry CBD oil amendment. The results signaled a clear victory for the cannabis industry.
Rohrabacher-Farr
For the second year in a row, Congress voted in favor of the Rohrabacher-Farr medical cannabis amendment. This amendment, introduced by Reps. Dana Rohrabacher (R-CA) and Sam Farr (D-CA), bans the Department of Justice from spending money to prevent the implementation of state-level medical cannabis programs, in addition to removing funding for federal medical cannabis raids, arrests and prosecutions in states where medical cannabis is legal. The vote count increased from 219-189 in 2014, to 242-186 this year, with 67 Republicans voting ‘Yes.’
McClintock-Polis
For the first time ever, the McClintock-Polis amendment was offered on the House floor. This amendment, introduced by Reps. Tom McClintock (R-CA) and Jared Polis (D-CO), is similar to the Rohrabacher-Farr amendment, but would have extended the same protections from the Department of Justice to non-medical retail marijuana businesses and consumers in states where adult-use sales have been legalized. The measure narrowly failed, 206-222, with more than 40 Republicans in support.
Bonamici-Massie
This amendment, officially named the Bonamici-Massie-Blumenauer-Polis amendment, blocks federal tax dollars from being used to prevent states from allowing the use, distribution, possession, or cultivation of industrial hemp. A member of the cannabis family, hemp is a valuable agricultural commodity that can be found in more than 25,000 commercial products including food, paper, beauty products, and more. The measure passed overwhelmingly, 282-146, with 101 Republicans voting in favor.
Perry
Rep. Scott Perry (R-PA) proposed an amendment to the CJS bill that would protect state laws that allow the use of CBD oils, but still leaves most medical marijuana patients and their providers vulnerable to federal arrest and prosecution. The measure was overwhelmingly passed by a margin of 297-130.
Just a few years ago, pro-cannabis amendments passing Congress was something that those involved in the industry could only dream of. Now, we’re just 16 votes shy of limiting the Department of Justice’s interference with any state-sanctioned marijuana business (McClintock-Polis). Though Congress moves at a notoriously glacial pace, these amendments shed light on politicians’ evolving stances on cannabis policy. These votes prove that NCIA, and all of our members, are slowly but surely convincing Congress that the cannabis industry is to be taken seriously.
HISTORY: Congress Takes Bipartisan Step to End War on Medical Marijuana
With a 219-189 vote, including 49 Republicans voting in support, the House of Representatives approved a measure denying the use of federal funds to undermine state-authorized medical cannabis laws
First act of Congress to protect medical marijuana patients and caregivers reflects overwhelming public support for medical cannabis
WASHINGTON, DC – In an historic vote late last night, the U.S. House of Representatives took a major step to end the federal government’s war on medical cannabis patients and caregivers. With 219 Members of Congress, including 49 Republicans, voting in support, the Rohrabacher-Farr amendment to the Commerce, Justice, and Science appropriations bill forbids the use of federal funds to raid, harass, or otherwise interfere with medical cannabis patients or providers in states where medical marijuana is legal.
“On behalf of lawful cannabis businesses across the United States, NCIA applauds the Members of Congress who supported this historic step,” said National Cannabis Industry Association director of government relations Michael Correia. “Voters overwhelmingly support the idea that patients whose lives can be changed by medical cannabis should be able to get that medicine legally, and the time has come for the federal government to respect the states that have made that possible. The House took that step last night.”
“This is a truly historic vote and a great day for state-legal businesses that many advocates and business owners, myself included, have worked for years to make happen,” said Etienne Fontan, chief operations officer for Berkeley Patients Group in Berkeley, California. “We’re elated and hope this signals an end to federal interference in states where cannabis is legal.”
Berkeley Patients Group is a licensed medical cannabis collective in California and has provided legal cannabis to patients for 15 years and has been the target of federal property forfeiture action despite its standing as one of the nation’s most well-respected medical cannabis operations. Fontan, a Gulf War combat veteran who also serves on the Board of Directors for NCIA.
The Justice, Science, and Commerce appropriations bill making its way through the U.S. Senate does not currently include the language of the Rohrabacher-Farr amendment, so the provision must either be added during Senate debate or retained during the conference committee actions that will reconcile differences between the two bills.
“If you’ve been wondering when Congress would be forced to catch up to public opinion on cannabis, it started last night,” said Correia. “The House of Representatives has done its part to respect state laws, patients, and the will of the voters. The Senate should do the same.”
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Medical Marijuana on the U.S. House Floor
State medical marijuana laws will get a discussion on the floor of the U.S. House of Representatives next week, when Reps. Dana Rohrabacher (R-CA) and Sam Farr (D-CA) plan to introduce an amendment to the Department of Justice’s funding bill which would bar federal funds from being used to prosecute medical marijuana patients and caregivers who are abiding by state law.
The discussion follows on the heels of a recent House floor vote that would have allowed doctors with the Department of Veterans Affairs to discuss the potential benefits of medical marijuana with their veteran patients. The amendment failed, but only by 27 votes in the Republican-majority House, indicating the increasing possibilities for successful marijuana reform measures.
The Marijuana Policy Project, our close allies in the reform movement, have set up a page where you can find out how your member of Congress voted on the recent Veterans Affairs amendment. Based on how your legislator voted, they’ve also prepared links to pre-written letters allowing you to either thank him or her for supporting the amendment, or encourage those who voted against it to reconsider his or her stance ahead of the vote on Department of Justice funding.
Legalizing pot: What’s happening in other states?
By Jack Markell for Associated Press
The votes in Washington and Colorado last month legalizing marijuana were just the latest developments in the debate over marijuana use in the United States.
Lawmakers and activists in some other states are contemplating their next moves in regards to marijuana.
Judiciary Committee Hearing Underscores Consensus: New Marijuana Industry Requires Access to Banking
Senators, Deputy Attorney General Cole, and witnesses all call for swift action to resolve banking crisis faced by legal marijuana businesses
Washington, D.C. – Today’s Senate Judiciary Committee hearing reinforced the growing consensus among legal marijuana regulators, law enforcement officials, and cannabis business professionals that allowing access to banking services is now the most pressing obstacle to the success of the regulated marijuana industry realizing its potential to effectively control marijuana sales in the states where it is legal for medical or adult use and ensuring the eight federal enforcement priorities outlined in last month’s Department of Justice memo can be upheld.
Witnesses Deputy U.S. Attorney James Cole, King County Sheriff John Urquhart, and Colorado Governor’s Chief Legal Counsel Jack Finlaw affirmed the concerns of Senators Patrick Leahy (D-VT), Sheldon Whitehouse (D-RI) , and Senator Richard Blumenthal (D-CT) that federal regulators’ actions to block state-legal marijuana business access to simple banking and financial services will inevitably undermine the viability of state-legal marijuana industries. Furthermore, Cole acknowledged that in states where marijuana has been decriminalized or made legal, implementing a strictly regulated system in which marijuana is sold is the only way to prevent criminal activity such as diversion to youth and across state lines and empowerment of criminals and cartels.
“We need to address the [banking situation] and we are working on it,” stated Deputy Attorney General James Cole who indicated the Department of Justice is conferring with the Department of Treasury’s Financial Crimes Enforcement Division to resolve the issue. Statement from Aaron Smith, NCIA Executive Director:
“The Department of Justice is finally taking seriously the dangers that a lack of access to simple banking services poses to consumers, employees and business owners. We are encouraged that the growing consensus among essentially all stakeholders is that banking access must be available to legal businesses. It portends a quick reform to this dangerous and unnecessary situation.”
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The National Cannabis Industry Association (NCIA) is the only national trade association working to advance the interests of cannabis-related businesses in the US. NCIA promotes the growth of a responsible and legitimate cannabis industry and works for a favorable social, economic and legal environment for that industry in the United States.
National Cannabis Industry Association Statement on DOJ Response to CO, WA Marijuana Laws
The National Cannabis Industry Association welcomes apparent shift in Department of Justice intent regarding marijuana enforcement
Washington, DC – In a memo issued to U.S. Attorneys today, Deputy Attorney General James Cole reinforced guidance indicating that the Department of Justice will not interfere with implementation of adult-use marijuana laws in Colorado and Washington.
Statement from Aaron Smith, Executive Director of the National Cannabis Industry Association:
“We are encouraged by today’s response from the Obama administration. At the heart of the guidance is a willingness to respect the voters who have decided a regulated marijuana market is preferable to a criminal market in their states. Cannabis-related businesses in these states are creating thousands of jobs and generating tens of millions of dollars in tax revenue. These are clear public benefits.
Now is not the time to push marijuana sales back under ground. The new voter-approved, regulated systems in Colorado and Washington should be allowed to proceed. We have full confidence the businesses in these states will comply with any requirements put forth by the Department of Justice. That is what they do. They comply with rules and provide a service to their customers and their communities. We are pleased to see the Obama administration will not cause harm to citizens and states by shutting these businesses down, and hope this will lead to an expansion of sensible policies related to marijuana such as allowing these businesses access to banking and taxing them at a fair rate.”
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The National Cannabis Industry Association (NCIA) is the only national trade association working to advance the interests of cannabis-related businesses in the US. NCIA promotes the growth of a responsible and legitimate cannabis industry and works for a favorable social, economic and legal environment for that industry in the United States.
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