¡Happy Cinco De Mayo! 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 Facebook for NCIA Today Live.
By Morgan Fox, NCIA’s Director of Media Relations
The cannabis world is still eagerly awaiting the introduction of Senate Majority Leader Chuck Schumer’s comprehensive descheduling legislation, but that doesn’t mean things haven’t been moving on the policy front in recent weeks!
First up, the DEA announced that it was finally moving forward with approving applications to cultivate cannabis for research purposes, which would effectively end the federal government’s stranglehold on research production. The agency spent years fending off lawsuits from applicants, who correctly asserted that not only was the monopoly limiting research, but the cannabis being grown at the single licensed facility at the University of Mississippi was basically unusable for research purposes anyway. This announcement comes several years after the DEA publicly stated that it would begin the licensing process. Better late than never.
Of course, we don’t think the DEA should be involved in cannabis research whatsoever, seeing as how they are a law enforcement organization and not, you know, scientists.
Next, Sen. Ron Wyden, who is also working closely with Majority Leader Schumer on descheduling along with Sen. Cory Booker, introduced S. 1698 last week. While text of this bill is currently not publicly available, the name suggests that this legislation would direct the FDA to allow hemp-derived CBD, made legal under the 2018 Farm Bill, to be used as a dietary supplement or in food. Some perceive this bill as necessary to get some regulatory clarity from the FDA, which has been dragging its feet and missed several deadlines for CBD regulations. Many in the industry blame this lack of regulation for larger retailers staying out of the CBD market, which has led to massive supply gluts of the substance and has been hypothesized to be a leading cause for the recent boom in Delta 8 THC production.
And earlier this month, Rep. David Joyce, an Ohio Republican who co-chairs the Congressional Cannabis Caucus, introduced a narrowly tailored bill to remove cannabis from the schedule of controlled substances. The bill assigns regulatory responsibilities to the FDA and the Alcohol and Tobacco Tax and Trade Bureau and gives them a one-year deadline to come up with a regulatory structure similar to alcohol. It also contains provisions similar to the protections that exist in the House-approved SAFE Banking Act, calls for studies on how cannabis impacts pain and driving, and improves access for veterans. Notably, this bill does not contain any social equity or restorative justice language.
While the chances of such legislation passing in the Democrat-controlled House are slim, it could serve as a doorway to get fence-sitting Republicans into the debate. It could also be a tool to identify those members of the GOP who are steadfastly opposed to any legalization bill and out of touch with their constituents, many of whom would directly benefit from cannabis policy reforms and who are increasingly in support of ending federal prohibition.
We’re also getting word that the Marijuana Opportunity, Reinvestment, and Expungement (MORE) Act is getting reintroduced in the House this week (and may have already been at the time of this publication). This legislation made history last December when it became the first descheduling bill to receive a floor vote – and pass – in either chamber of Congress. We are hopeful that there will be some revisions from the previous bill, including the removal of a provision that would allow federal licensors to deny applications for cannabis business licenses based on prior state or federal felony convictions, and the inclusion of a more sensible and robust regulatory framework.
We are less than halfway through the calendar year, and it is shaping up to be a momentous one for cannabis advocacy! Stay tuned for more updates from Capitol Hill.
P.S. On the state side, Alabama became the latest state to approve an effective medical cannabis law. Yes, Alabama. That brings the count of medical states to 36, after unfortunately losing Mississippi to a shameful court decision. So far in 2021, four states have approved adult-use or medical cannabis legislation, and more are expected to do so in the coming weeks and months.
By Morgan Fox, NCIA’s Director of Media Relations
On April 19, the House of Representatives approved legislation once again that would provide legal protections for financial service providers to work with cannabis businesses that are in compliance with state laws. The Secure and Fair Enforcement (SAFE) Banking Act, or H.R. 1996, was reintroduced in March by a bipartisan group of sponsors and had 177 total cosponsors by the time of the vote.
The legislation was approved by a vote of 321-101 and included 106 Republicans voting in favor of the measure, a small majority that represents a growing trend of increasing conservative support since the last time this bill was approved in the House in 2019. No Democrats voted against the bill. This is the fourth time that the House has approved the language of the SAFE Banking Act, initially as the first standalone cannabis policy reform bill ever passed by either chamber of Congress two years ago and two more times last year as part of pandemic relief packages that were not approved in the Senate.
In the time that elapsed between the last vote on the SAFE Banking Act and this one, a number of factors have added momentum and boosted the pressure on federal lawmakers to more seriously consider cannabis policy reform generally and bills like the SAFE Banking Act.
First, cannabis businesses were nearly unanimously declared essential in states with regulated markets during the pandemic, adding to the legitimacy of the industry in the eyes of many while providing uninterrupted healthcare, jobs, and tax revenue in a very challenging economic and public health environment. However, despite increased sales over the last year, the operational costs required to keep employees and customers safe have taken their toll, compounded by the added costs and other challenges associated with limited access to banking services or traditional loans.
These obstacles were felt even more keenly by cannabis businesses because they could not avail themselves of the federal stimulus packages approved by Congress, such as PPP or funds available through the Small Business Administration. Helping to ease the worsening financial burdens facing the cannabis industry during such a difficult time was a major reason for the inclusion of SAFE Banking language in the House-approved aid bills. Recently, standalone legislation has also been reintroduced by Small Business Committee Chair Nydia Velazquez to allow direct and indirect cannabis businesses to be able to access SBA-backed loans and other assistance programs.
Unfortunately, the inclusion of cannabis language in House stimulus packages was used as a political attack tool in the leadup to the election by some lawmakers, likely leading to a postponement of a House vote on the MORE Act, which would remove cannabis from the schedule of controlled substances and help repair the damage done by prohibition. Those attacks significantly died down in November, however, when five states approved adult-use or medical cannabis ballot initiatives by heavy margins, including the red states of Mississippi, Montana, and South Dakota. These victories paved the way for the historic passage of the MORE Act in the lower chamber in December. Three additional state legislatures have passed adult-use laws since then, including the first Southern state of Virginia.
This combination of political will, the feasibility of passing cannabis policy reform measures both comprehensive and incremental, and the introduction of eight new regulated cannabis markets in just a few short months has lawmakers of all stripes taking a much closer look at this issue than ever before. Even staunchly opposed legislators are being forced to reexamine their positions on bills that would directly benefit their constituents and businesses in their states, particularly in light of the urgent need for jobs and taxes as the pandemic response begins to pivot toward economic recovery. This is on top of record public support nationally for legalization. It is becoming increasingly clear to lawmakers that standing in the way of reform is a losing proposition.
With the passage of the SAFE Banking Act, it is likely that the House will move its attention to amending and approving the MORE Act for a second time, as well as considering several other pieces of cannabis-related legislation. The fate of the SAFE Banking Act now lies with the Senate. Senate Majority Leader Chuck Schumer said recently that he would prefer to wait for further consideration of that or other incremental reforms until after the introduction of his much-anticipated comprehensive descheduling bill in the coming weeks. We are confident that debate and progress on these bills is not mutually exclusive, and moving both pieces of legislation through the upper chamber simultaneously is both possible and likely, especially given the broad bipartisan support that the SAFE Banking Act enjoys.
by Morgan Fox, NCIA’s Director of Media Relations
While the country waits for the outcomes of national elections that could very well impact the future of cannabis policy reform advocacy, we do have a LOT to be happy about today!
Last night, adult-use and medical ballot initiatives SWEPT the elections, passing in every state in which they were considered!
Voters in Arizona, Montana, New Jersey, and South Dakota all passed measures making cannabis legal and regulated for adults. South Dakota also approved a medical cannabis initiative by an even greater margin, and was joined by Mississippi where an overwhelming majority of voters not only supported medical cannabis but chose the much more comprehensive of two competing options.
You can learn more about these initiatives here and how they fared in the elections here.
First, let’s talk about New Jersey. Roughly two thirds of voters in the state approved this ballot measure, which was referred to them after lawmakers were unable to pass similar legislation last year. This is a big jump in ballot approval margins; before now, the most popular legalization referendum was in California, which approved Proposition 64 in 2016 with 57% of the vote. That’s a 10% margin increase in just four short years! The large population and huge market potential (more than $1.5B by 2025) are sure to have a major impact on the industry. Regionally, passage of this initiative is certain to add urgency to adult-use cannabis regulation efforts in states like New York, Pennsylvania, Connecticut, Delaware, and Rhode Island.
South Dakota also set a record by becoming the first state to approve an adult use law before having an established medical cannabis system, and in a very conservative state no less! Voters supported both medical and cannabis initiatives despite strong opposition from the governor and other officials.
In Arizona, after voters narrowly defeated a legalization initiative in 2016, a significant swing brought a 10% increase in support resulting in passage. This long-overdue change is especially important because Arizona is the only state where simple possession is a felony and nearly 15,000 people are arrested every year.
So what does this mean for future reform efforts?
First and foremost, the passage of the adult use initiatives means nearly 34% of Americans now live in states with laws making cannabis legal and regulated for adults. These four states account for roughly 60,000 marijuana arrests every year, mostly for simple possession. Congressional representation of states where cannabis is legal for adults will increase by 29 representatives and eight senators. This doesn’t guarantee their support for cannabis legislation, but it certainly increases the chances.
Second, passage of cannabis policy reform initiatives in conservative states like Mississippi, Montana, and South Dakota should send a signal to Republican lawmakers in Congress that this is an issue that they can support, and one which they will face political consequences for impeding. The fact that all three of these states had multiple cannabis-related issues on the ballot and voters were not swayed or confused is a testament to the will for change in these areas and a growing understanding of the issue.
Long story short: more and more states will continue to enact sensible, modern cannabis policies in the coming years, and every state that does so will help add to the chorus of voices from the public and in Congress calling for an end to outdated federal prohibition policies.
by Morgan Fox, NCIA’s Director of Media Relations
Ballot: Proposition 207, Smart & Safe Act (adult use)
Summary: https://smartandsafeaz.com/about/
Full language: https://mk0adassociatioy1jbg.kinstacdn.com/wp-content/uploads/2019/10/I-23-2020.pdf
Main backers: Smart and Safe Arizona
Possession: Adults 21+, 1 ounce flower or 5 grams concentrate
Home cultivation: YES, adults 121+ may have up to 6 plants in an enclosed locked location out of public view.
Licenses:
Social Equity:
Department of Health Services would be required to establish a Social Equity Ownership Program to promote cannabis business ownership and employment for individuals from communities disproportionately impacted by the enforcement of previous marijuana laws.
Proposition 207 would establish a fund called the Justice Reinvestment Fund (JRF). Revenue in the JRF would be allocated as follows:
Taxes & Revenue:
Transaction Privilege Tax (currently 5.6%)
Specific 16% excise tax (non-medical)
Revenue from the excise tax and license fees would be deposited into the Smart and Safe Arizona Fund. First, revenue would be used to implement and enforce marijuana regulations. The remaining revenue would be allocated as follows:
Additional Resources: Proposition 7 Information, FAQ
Ballots: Initiative 65 (medical), Alternative 65A (medical, terminally ill patients only)
Summary:
Full Language:
Main Backers:
Possession:
Home Cultivation: NO
Licensing:
Social Equity: None explicitly included in either initiative.
Taxes & Revenue:
Additional Resources: Overview and Sample Ballot Question – IMPORTANT! These questions are worded in a confusing manner on ballots.
Ballots: Initiative 190 Marijuana Legalization Initiative (adult use), CI-118 Allow for a Legal Age for Marijuana Amendment
Summary:
Full Language:
Main Backers: New Approach Montana
Possession: Adults 21+, up to one ounce of flower or 8 grams of concentrate
Home Cultivation: YES, up to four (4) plants per adult, maximum eight (8) per household.
Licensing:
The Department of Revenue shall develop rules and regulations regarding licensing of providers, marijuana-infused products providers, and dispensaries for adult use. For the first 12 months, only existing medical cannabis licensees may apply. Provider licenses are established in tiers based on canopy size and also include micro-business licenses. Applicants must have resided in Montana for at least one year prior and may not have been convicted of a felony involving fraud, deceit, or embezzlement or for distribution of drugs to a minor within the past 5 years. Cannabis businesses may not be located within 500 feet of a school or place of worship unless permitted by the local jurisdiction.
Social Equity: Persons convicted of behavior permitted by Initiative 190 may apply for resentencing or expungement.
Taxes & Revenue:
Additional Resources: Initiative 190 Information
Ballots: Question 1, Marijuana Legalization Amendment (2020)
Summary: https://www.njcan2020.org/whats-on-the-ballot/
Main Backers: NJ Can 2020
Possession: 21+, limits TBD by Legislature
Home Cultivation: TBD by Legislature
Licensing: TBD by Legislature, regulated by existing Cannabis Regulatory Commission
Social Equity: TBD by Legislature
Taxes & Revenue: Standard state sales tax of 6.625%; Legislature can authorize municipalities to impose up to an additional 2% local tax
DONATE NOWAdditional Resources:
Ballots: Measure 26 (medical), Amendment A (adult use)
Summaries: https://www.southdakotamarijuana.org/the-initiatives
Full Language:
Main backers:
Possession:
Home Cultivation:
Licensing:
Social Equity: None explicitly included in initiative language
Taxes & Revenue:
Additional Resources:
by Madeline Grant, NCIA’s Government Relations Manager
With the election coming up just around the corner, 2020 could be another big year for our movement. It is imperative that we all head to the polls, send in our mail-in ballots and make our voices heard in this monumental election. This week I will briefly go over each ballot initiative that has officially qualified for the November ballot. As we continue to get closer to the election, I will get into detail about what each ballot initiative does for each state. 2020 has been a year of uncertainty and as we approach the election it is our duty as U.S. citizens to get out and vote and as members of the cannabis industry, it’s important that we support the expansion of markets by donating to initiative campaigns.
Without further ado please see marijuana ballot initiatives below:
It is more important than ever to get out and vote. Our government relations team works hard in our nation’s Capital to achieve legislative victories at the federal level; however, achieving legislative victories at each state is just as important. It is through each successful ballot initiative at the state that provides the proof and support for legislative change and policy reform at the federal level. States are moving forward; therefore, we must be on Capitol Hill. We must keep fighting the good fight and get out and show our support for cannabis policy reform.
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