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.

 

 

 

 

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 – September 3, 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.

 

 

Crazy for Cannabis Administration and Opportunity Act (CAOA)

Photo By CannabisCamera.com

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

Last week was undoubtedly one of the most exciting weeks in federal cannabis policy ever! On July 14, Senate Majority Leader Chuck Schumer (D-NY), along with Sen. Cory Booker (D-NJ) and Senate Finance Committee Chair Ron Wyden (D-OR), unveiled long-awaited draft legislation that would remove cannabis from the schedule of controlled substances while allowing states to determine their own cannabis policies. Let’s take a look at what we know:

What is it?

You’ll recall that back in February, the trio of Senators announced that they were working on a comprehensive cannabis bill. Since then, NCIA and other advocates have (im)patiently been waiting to see what shape that would take – I was calling it the best-kept secret in Washington! However, at long last, the discussion draft of the Cannabis Administration and Opportunity Act (CAOA) was released. 

A discussion draft is exactly what it sounds like – prior to introducing this language as formal legislation, the Senators have shared it in this form, allowing stakeholders, the public, and others the opportunity to weigh in and provide their expertise and feedback.

What’s in it?

As I mentioned above, the CAOA removes cannabis from the list of controlled substances, effectively legalizing it at the federal level while still allowing states to set their own policies. According to the bill’s detailed summary, it has a few goals:

“… [it will] Ensure that Americans – especially Black and Brown Americans – no longer have to fear arrest or be barred from public housing or federal financial aid for higher education for using cannabis in states where it’s legal. State-compliant cannabis businesses will finally be treated like other businesses and allowed access to essential financial services, like bank accounts and loans. Medical research will no longer be stifled.”

The bill also includes:

  • Restorative measures for people and communities who were unfairly targeted in the war on drugs. 
  • Automatic expungements for federal non-violent marijuana crimes and allows an individual currently serving time in federal prison for nonviolent marijuana crimes to petition a court for resentencing. 
  • An “Opportunity Trust Fund” funded by federal cannabis tax revenue to reinvest in the communities most impacted by the failed war on drugs, as well as helping to level the playing field for entrepreneurs of color who continue to face barriers of access to the industry. 
  • An end to discrimination in federal public benefits for medical marijuana patients and adult-use consumers. 
  • Respect for state cannabis laws and a path for responsible federal regulation of the cannabis industry. Like with federal regulations on alcohol, under CAOA, states can determine their own cannabis laws, but federal prohibition will no longer be an obstacle. Regulatory responsibility will be moved from the U.S. Drug Enforcement Agency (DEA) to the Alcohol and Tobacco Tax and Trade Bureau (TTB), the Bureau of Alcohol Tobacco Firearms and Explosives (ATF), as well as the Food and Drug Administration (FDA) to protect public health. 
  • A federal tax structure – CAOA would impose an excise tax on cannabis products in a manner similar to the tax imposed on alcohol and tobacco. The general rate of tax would be 10 percent for the year of enactment and the first full calendar year after enactment. The tax rate would increase annually to 15 percent, 20 percent, and 25 percent in the following years. 

What’s next?

The discussion draft comment and feedback process will be ongoing until September 1. Until then, NCIA will be working with our board, Policy Council, committees, and our members (particularly our Evergreen members!) to solicit their expert input on some of the areas the Senators have expressed interest in. After that deadline, the Senators will take their time to review submissions and subsequently formally introduce the revised language later this year. Stay tuned via our newsletter, blog, and upcoming events to learn the latest on this and how you can actually submit your thoughts to us! 

Video: NCIA Today – The MORE Act, 2020 Election, Board of Directors, and More!

Tune in to this month’s episode of NCIA Today with Deputy Director of Communications, Bethany Moore.

This month, we’re sharing even more important news about The MORE Act, an analysis of the results of the 2020 election, plus our own Board of Directors election results, and a new policy report from NCIA’s Policy Council. We review some clips from the educational panels from our very first CYBER edition of our Cannabis Business Summit & Expo

We’re doing a great job staying home, wearing masks, and socially-distancing through these difficult times. We can’t wait to get back to hosting our national and regional events in person later in 2021. In the meantime, make sure you’re subscribed to our email list, and listening to NCIA’s weekly podcasts hosted by myself and Tahir Johnson. And now is a great time to invest in the future of our industry by getting more involved in NCIA, registering for our educational webinars, and learning more about the Diversity, Equity, and Inclusion Program SPONSORSHIP opportunities! Join NCIA members who have stepped up their support by becoming DEI Program Sponsors like 4Front Ventures and Greenbridge Corporate Counsel. 

MORE Act House Vote Delayed, NCIA Submits Comments on FDA Guidance

by Morgan Fox, NCIA’s Director of Media Relations

In what House leaders have assured supporters is merely a temporary delay, lawmakers announced that the vote on the MORE Act which was originally scheduled for this week has been postponed until at least after the November election.

This legislation – which would remove cannabis from the Controlled Substances Act (CSA), expunge federal cannabis convictions, and establish programs to promote diversity in the cannabis industry and help communities that have been unfairly targeted by marijuana enforcement – was eagerly awaited as the first bill of its kind to get a floor vote in either chamber of Congress. No other de-scheduling bill, particularly one that contains robust restorative justice provisions, has ever gotten a vote since the original passage of the CSA in 1971, and advocates were confident that it would be approved in the House. In recent months, dozens of additional lawmakers have signed on to co-sponsor the bill, bringing the current total to 113.

Unfortunately, despite recent polling showing majority support for the MORE Act among Republican voters (and its job- and revenue-creating potential), some in the GOP attacked Democratic House leadership for moving forward with the bill before Congress had come to an agreement on a new pandemic relief package.

While this is certainly disappointing, House leadership has promised that the MORE Act will get a vote before the end of the year. That gives us at least another seven weeks to continue building support! In the meantime, attention is turning back to pandemic relief, where we are still pushing for the continued inclusion of SAFE Banking language in the final package if Congress can come to an agreement. There are also a number of cannabis-related provisions in this year’s appropriations bills, including removing barriers to research, protecting universities engaged in cannabis research, and preventing federal interference in state-legal medical and adult-use cannabis programs.

Please contact your members of Congress and urge them to support ALL these measures!

In other federal news…

With the help of our Policy Council, Hemp Committee, and Scientific Advisory Committee, NCIA submitted comments to the Food & Drug Administration this week providing recommendations on a number of issues related to how the agency will classify cannabis and cannabis-derived compounds in the future. You can read the full comments here. While the current comment period is now closed, the FDA has been expressing increased interest in input from a variety of stakeholders, suggesting that they are preparing for a change in policy in the relatively near future. It is very likely that there will be more opportunities to weigh in on their policies that could affect the cannabis industry for years to come.

The DEA and USDA both have open comment periods right now, so be on the lookout for more information about how you can help us influence cannabis and hemp policy at those agencies in the coming weeks!

 

Looking Back On #10YearsOfNCIA: 2016-2017

Photo By CannabisCamera.com

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

Over the last month, I’ve been taking a retrospective look at the progress NCIA has made in the ten years since its inception. While it’s been fun to look back at those early years, this week I’m excited to look at a time when cannabis policy was getting really active: 2016-2017! While this timeline is by no means a comprehensive look at everything that’s happened in cannabis policy during those years, here are some highlights:

January 2016

District judge dismisses lawsuit against the Fed, filed by the Fourth Corner Credit Union, says Congress must fix the cannabis banking problem. The same month, President Obama announces that cannabis reform is not on his agenda in 2016.

March 2016

The Supreme Court dismisses Kansas’ challenge to Colorado marijuana laws. The 6-2 vote meant the nation’s highest court would not rule on the interstate dispute, and Colorado’s legal cannabis market remains safe. “Since Colorado voters overwhelmingly passed legal recreational marijuana in 2012, we have worked diligently to put in place a regulatory framework — the first in the world — that allows this new industry to operate while protecting public health and safety,” then- Gov. John Hickenlooper (D) said following the decision. “With today’s Supreme Court ruling, the work we’ve completed so far remains intact.”

An AP poll shows that 61% of Americans support legalizing cannabis. The most recent Gallup poll on the issue, published in October 2019, shows that approval number has risen to 66%.

April 2016

U.S. Senate Caucus on International Narcotics Control holds a hearing titled “Is the Department of Justice Adequately Protecting the Public from the Impact of State Recreational Marijuana Legalization?” 

May 2016

NCIA holds its 6th Annual Cannabis Industry Lobby Day in D.C., garnering over 150 attendees and participating in more than 200 scheduled meetings on Capitol Hill. That same month, the Tax Foundation reports a legal marijuana industry could mean up to $28 billion in federal, state, and local tax revenues.

June 2016

NCIA hosts our 3rd Annual Cannabis Business Summit in Oakland with 3,000+ attendees. That same month, the U.S. Senate Appropriations committee narrowly approved a marijuana banking amendment. Ultimately, the amendment did not make it into law. The amendment has not passed this specific Committee since, though we continue to try! 

July 2016

Showing increased interest and momentum on this issue, the U.S. Senate Judiciary Committee holds a hearing on the potential benefits of medical marijuana. The same month, the Democratic Party included reclassifying cannabis in the party’s platform. 

August 2016

This was an exciting month because we got to really see our efforts at work in the real world. Four years ago this month, the Ninth Circuit Court of Appeals ruled that due to the Rohrabacher-Farr amendment, the Department of Justice cannot use funds to enforce federal law against state-legal medical cannabis businesses.

September 2016

U.S. Attorney General Loretta Lynch says that marijuana is not a gateway drug, but that same month, FBI data showed that there is one cannabis arrest every 49 seconds in the U.S. The majority of those individuals are Black and brown and are arrested four to eight times more than their white counterparts.

October 2016

Members of Congress and the campaigns to legalize cannabis in various forms enter the final push. That month, a report also showed that Colorado’s marijuana industry had a $2.39 billion financial impact and created more than 18,000 jobs in the state.

November 2016

Five states (Arizona, California, Maine, Massachusetts, and Nevada) voted on ballot initiatives to legalize, tax, and regulate marijuana for adult use. Four of those initiatives passed, and three of them passed by more than seven percentage points.

Four states (Arkansas, Florida, Montana, and North Dakota) voted on ballot initiatives to create or expand legal medical marijuana programs. All four of those initiatives passed, with an average victory of 26.3 percentage points.

Of course, November 2016 is also when Republicans took control of both chambers of Congress and candidate Trump became president-elect Trump. 

January 2017

NCIA establishes the Policy Council to serve as the industry’s “think tank” in D.C., developing and publishing policy papers to educate policymakers and other stakeholders on topics relevant to the cannabis industry. The same month, Sen. Jeff Sessions (R-AL) begins his confirmation hearing to become U.S. Attorney General. He is subsequently confirmed, bringing uncertainty to the cannabis space.

February 2017

White House press secretary Sean Spicer said that he expects states to see “greater enforcement” of the federal law against marijuana use, a move that would be at odds with a growing number of states’ decisions to legalize it. Spicer, taking questions from reporters at the daily briefing, differentiated between the administration’s positions on medical marijuana and recreational marijuana. Funnily enough, Spicer’s career lasted about as long as it takes me to smoke a joint. 

The nation’s first-ever Congressional Cannabis Caucus is formed by Reps. Rohrabacher (R-CA) and Blumenauer (D-OR) with help from friends Reps. Polis (D-CO) and Young (R-AK). In the 116th Congress, Rohrbacher and Polis left Congress and were replaced by Barbara Lee, a Democrat from California, and David Joyce, a Republican from Ohio, as co-chairs.

May 2017

NCIA’s D.C. team grew from two (myself and Mike) to three, with the addition of Maddy Grant, who was our Government Relations Coordinator at the time. Since then, Maddy has become one of my best friends and was even one of my bridesmaids! If you know Maddy, you know she’s the best and NCIA is lucky to have her!

NCIA held its 7th Annual Cannabis Industry Lobby Days in Washington, D.C., where 250 industry professionals coalesced on Capitol Hill to attend over 300 scheduled meetings. Following that, there was a substantial increase in the number of cosponsors on cannabis-related bills compared to the previous Congressional session. 

July 2017

The Senate Appropriations Committee voted on their equivalent of the Rohrabacher-Farr amendment, sponsored by the committee’s vice chairman, Patrick Leahy (D-VT). That amendment passed on a voice vote and was the first time ever that a cannabis-related amendment passed in such a manner. At the end of July, the Senate Appropriations Committee also adopted an amendment that would allow the Department of Veterans Affairs to recommend medical cannabis in states. That amendment passed by a vote of 24 to 7 – the most votes this measure has ever received in the Senate. The veterans’ measure did not end up becoming law.

September 2017

The House Rules Committee held a hearing to discuss amendments to the upcoming appropriations bill that will fund the federal government for the upcoming fiscal year and chose not to vote on the amendment that protects medical cannabis businesses, patients, and programs. Since the protections for medical cannabis businesses were included in the Senate’s version of the budget bill but are not included in the House’s versions, it came down to a conference committee to negotiate its inclusion, and ultimately, the provision remained in law.

December 2017

Senate Republicans passed their tax reform package into law. Sen. Cory Gardner (R-CO) introduced two amendments to the bill that targeted 280E, however, he withdrew both amendments before the final bill was voted on.

If you think reminiscing on all that was a lot, make sure you keep an eye on our blog and future issues of NCIA’s Cannabusiness Leader to learn more about 2018-2019 and the progress we’ve made more recently as we wrap up this series! 

 

NCIA Today: May 2020 Episode – HEROES Act, #CannabisIsEssential, and New Fireside Chats for NCIA Members

Host Bethany Moore, NCIA’s Communications Manager and host of NCIA’s weekly Podcast ‘NCIA’s Cannabis Industry Voice‘ brings you an in-depth look at what is happening across the country in federal cannabis policy reform and with NCIA.


From the top, Bethany discusses the NCIA
#CannabisIsEssential movement, coordinating efforts between our communications, public policy, and government relations teams. We have been hard at work, exploring avenues for the legal cannabis industry to access federal COVID relief benefits, like including SAFE Banking language in the recent HEROES Act.

We check in with NCIA Deputy Director of Public Policy, Rachel Kurtz, to hear some of the recent highlights from our Allied Associations Program. Fortunately, most states have deemed cannabis as essential, and our state associations are working in their areas to make relief options, or commerce opportunities, easier to reach.

Kim Kovacs, President of the Arcview Group, checks in with Bethany to discuss the relaunch of their Women’s Investors Network. The cannabis industry leads on women in C-suite and leadership roles, but that doesn’t mean we can be complacent. ArcView has been offering regular webinars, and other digital programming options, for women energetic about entering the space. The next will be looking at the science behind the plant, join the conversation!

We’ll see you next month for NCIA Today!

 

Webinar Recording: All Gave Some, Some Gave All – A Policy Discussion on the Veterans Cannabis Conundrum

In case you missed this webinar on Memorial Day, watch this recording.

Especially around Memorial Day, it’s important to remember the reason for the holiday: our veterans. Unfortunately, though all gave some and some gave all, the vast majority of our veterans are still unable to access safe, regulated cannabis. Many individuals in the veteran community struggle under unique health burdens stemming from their honorable service, and have experienced little success in managing their conditions with available pharmaceuticals. Through cannabis, veterans of all generations and with various conditions have experienced improvements in their quality of life by using cannabis.

In Congress, two bills aimed at tackling this issue have already passed out of the House Veterans Affairs Committee — H.R. 712: the VA Medicinal Cannabis Research Act of 2019, sponsored by Congressman Lou Correa (D-CA) and H.R. 1647: the Veterans Equal Access Act, sponsored by Congressman Earl Blumenauer (D-OR). In March, the Congressional Budget Office scored H.R. 1647 and found that passing the bill into law would cost the federal government exactly $0.

Enjoy this webinar focused on cannabis, health, and our armed services members. NCIA’s Government Relations team is joined by none other than the lead sponsors of the VA Medicinal Cannabis Research Act of 2019 and H.R. 1647: the Veterans Equal Access Act, Congressmen Lou Correa and Earl Blumenauer, respectively. Our panel also includes the cofounders of the Veterans Cannabis Coalition, Eric Goepel and Bill Ferguson. This unique opportunity will allow you to hear from the lead sponsors of legislation designed to give our veterans the best quality of life possible, interact with member(s) of Congress, and learn more about the prospects of these bills passing into law.

Webinar: Policy Council Conversations: Just Say No – Keep the DEA out of Cannabis Research

NCIA’s #IndustryEssentials educational webinar series is our new digital platform featuring a variety of programs to provide you timely, engaging, and essential education when & where you need it most!

The Policy Council Conversations series features insights & invaluable content directly from members of NCIA’s Policy Council, the preeminent “Think Tank” for the cannabis industry.

The Drug Enforcement Administration recently issued a notice of proposed rulemaking on cannabis research. If adopted, this rule would fundamentally change how cannabis research is conducted. NCIA recently submitted public comments, rejecting the DEA’s power grab and strongly suggesting that a public health agency (i.e. Health and Human Services, National Institutes of Health, etc.) lead on cannabis research. Simultaneously, lawyers at Yetter Coleman filed a Freedom of Information Act lawsuit against DOJ, demanding the release of an OLC memo relied upon by DEA in their rulemaking. That successful suit was brought on behalf of Scottsdale Research Institute.

This panel will discuss the critical importance of cannabis research, the DEA rulemaking and NCIA’s numerous objections, and the lawsuit against DEA and the resulting disclosure of the DOJ policy memo.

Register now to join us on Wednesday, June 3 at 12:00 PM MT.

REGISTER NOW

Panelists:

Jodi Avergun
Chair, White Collar and Criminal Defense and Investigations Group
Cadwalader, Wickersham & Taft LLP
&
Former Chief of Staff
Drug Enforcement Administration (DEA)

Andrew Kline
Director of Public Policy
National Cannabis Industry Association

Sue Sisley, MD
Principal Investigator
Scottsdale Research Institute

Matt Zorn
Associate
Yetter Coleman

Shane Pennington
Associate
Yetter Coleman

Webinar Recording: Protecting Your Cannabis Brand

As the cannabis industry emerges from start-up to major economic player, the protection of intellectual property becomes all the more critical. This expert panel will discuss the options available to protect trademarks at the state and federal level, how to apply for and obtain a federal patent, and how to protect designations of origin (much like we protect Champagne or Bordeaux in France). The panelist will draw upon their professional expertise, as well as their practical experience in applying for and successfully receiving trademark and patent protections. A white paper summarizing the author’s recommendations will be released this summer by NCIA’s Policy Council.

Just Say No: Keep The DEA Out Of Cannabis Research

by Andrew Kline, NCIA’s Director of Public Policy

Democracy requires active participation. Of course, that starts with VOTING in November, but it doesn’t end there.

When Executive agencies request public comment on proposed rulemakings, it’s important that anyone with a stake in the issue chime in. This process is governed by the Administrative Procedure Act, and agencies are required to consider any such comments filed by members of the public. The more comments submitted, the more likely that the Executive Branch will take them into account. 

This week, NCIA did its part by filing public comments in response to DEA’s proposed rulemaking on cannabis research. It is our view that instead of facilitating research, this proposed rulemaking (and any subsequent rules that codify DEA’s plans) will serve only to further hinder research and indefinitely delay any potential positive outcomes. And that is not a positive development for the industry. Because we believe that these proposed rules would radically overhaul how medical cannabis can be researched, we opposed this rulemaking in its entirety. We encourage the industry to file public comments expressing similar concern. So, get typing – because this is a very important rulemaking for the cannabis industry. 

The success of modern medicine is dependent on sound implementation of evidence-based medicine. Expanding research capability is of critical importance for NCIA’s nearly 2,000 members who serve consumers and patients across the nation and who have a vested interest in knowing as much as possible about the medical properties of the cannabis plant. The reasons why the U.S. lacks sufficient data on the medicinal use of cannabis are simple — supply and quality. Plainly, there is not enough cannabis being grown by the University of Mississippi for meaningful research by NIDA. The quality of the cannabis produced is also objectively unsuited for medical research or rigorous clinical trials. Better quality cannabis and more easily accessible supply are greatly needed. Research is also needed to make better decisions about the myriad potential uses of cannabis and for better policy-making, including legislation and drug scheduling decisions. DEA’s attempted rulemaking would do nothing to solve either of those problems. In fact, it is more likely that these proposed rules would, in fact, obstruct research by leaving the most experienced cultivators on the sidelines. 

Our most significant objection is related to the power grab by DEA. Plainly, a law enforcement agency should not be in charge of any aspect of this process. Instead, NCIA believes that one of the many qualified public health agencies in the federal government (i.e. Health and Human Services, National Institutes of Health, etc.) should manage all of the processes related to research into the medical benefits of cannabis, including making decisions about who might qualify to grow and sell the product to researchers. It is for this reason that we call for a complete withdrawal of this rulemaking. But, it’s not just DEA’s power grab that is causing consternation. 

In promulgating these new rules, DEA has stated that it is bound by the dictates of an international treaty — the Single Convention — in how it licenses cultivators of cannabis for medical research. In doing so, DEA proposes new regulations that require licensed growers to transfer all of their output to DEA and, with limited exceptions, gives DEA exclusive control over the import, wholesale trade, and maintenance stocks of cannabis. 

To our knowledge, compliance with the Single Convention has never previously been raised as a requirement to obtain a registration. While we believe that the adherence to international treaties is important, DEA’s new focus upon the Single Convention is curious, to say the least. In recent years, President Trump has not been shy about his opposition to international trade groups and security alliances. It is therefore rich to see the Administration relying upon an international treaty to justify the transfer of authority over cannabis production for research to law enforcement. There is, however, a simple solution: withdraw from the Single Convention and rejoin the Convention with a formal reservation opting out of the cannabis-related provisions of the Convention. 

DEA’s proposed rule also specifically notes that it will consider prior compliance with federal (not state) narcotics laws (particularly the Controlled Substances Act) in granting or denying the registration. This threatens to exclude many of the nation’s most qualified applicants, namely, state-compliant cultivators. There is a great deal of complex technology and learned technique that goes into cannabis growing and extraction practices. The U.S. needs to leverage the expertise of growers with 20-30 years of experience, rather than relying on suppliers with limited experience growing cannabis. NCIA would prefer to see a greater emphasis on other factors, like compliance with state laws, expertise in growing cannabis, and demonstrated ability to grow research-grade cannabis. 

Finally, the new NPRM provides that no new application for manufacture will be considered until all of the applications that were accepted for filing before the effective date of the rule have been granted or denied. Given the nearly four-year backlog of pending applications, this plan appears likely to cause further delays to much-needed research which could help Americans. 

For these, and a host of other reasons, NCIA filed public comments opposing these proposed rules.

We hope that you will file public comment too. It’s easy.

Just type up a letter and file it on-line here: Notice of Proposed Rulemaking .

This is your democracy. Take control of it. 

 

Andrew Kline is NCIA’s Director of Public Policy and a former federal prosecutor. He can be reached at andrew@thecannabisindusty.org 

Protected: Webinar Recording: Fireside Chats – Staying Politically Engaged in the Age of Coronavirus

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Webinar Recording: A Spring Federal Policy and Government Relations Update

In this webinar from the morning of Friday, March 27 at 10:00 AM MT, NCIA’s Director of Public Policy, Andrew Kline, presents an update focused on federal cannabis policy issues taken up by NCIA’s Policy Council, including vaping illnesses, highlights of the findings from the Illicit Market Summit, and comments to be submitted to the DEA and NIDA. We also explore the COVID-19 responses across the United States.

Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations, shares information about how to stay politically active on behalf of cannabis policy reform while still practicing physical distancing during the COVID-19 pandemic. We explore the impact that COVID-19 is having on small cannabis businesses, plus an update on the action and movement we’ve seen in Congress, including a recent letter sent regarding Small Business Administration loans for cannabis businesses.

Speakers

Michelle Rutter Friberg
Deputy Director of Government Relations, National Cannabis Industry Association

Michelle Rutter Friberg is deputy director of government relations for the National Cannabis Industry Association. Prior to working for NCIA, Michelle was a research analyst at a government affairs firm in Washington, D.C., where she analyzed and tracked legislation on numerous issues. Michelle graduated from James Madison University in 2012, receiving her Bachelor of Arts degree in Political Science with a minor in History. During her studies, she held a year-long internship with Virginia House of Delegates member Tony Wilt (R). There, she communicated with constituents, businesses, and government officials alike, facilitating meaningful conversations. Michelle was also a member of a pre-law fraternity where she planned events and hosted social functions that sought to encourage long-lasting professional and personal relationships with members. A native Virginian, Michelle currently resides in the Washington, D.C. neighborhood of Capitol Hill.

Andrew Kline
Director of Public Policy, National Cannabis Industry Association

Andrew Kline is NCIA’s Director of Public Policy. In this new role established in early 2019 at NCIA, Andrew leads NCIA’s substantive public policy efforts, striving to prepare and protect the state-legal cannabis industry. He will also lead NCIA’s Policy Council, a group of NCIA members focused on influencing federal and state public policy. Kline most recently served as President of the National Association of Cannabis Businesses (NACB), the first self-regulatory organization for the high-growth cannabis industry. At the NACB, Andrew led the creation of national standards for the state-legal cannabis industry, oversaw its standards governance board, and led day to day operations and strategic planning. Kline has a deep and celebrated background in public policy, law enforcement, and coalition creation/management. He is renowned for his ability to create solutions to complex domestic and global public policy issues that appeal to both private and public constituencies.

The Illicit Cannabis Market Puts Consumers At-Risk and Is an Existential Threat to the State-Legal Cannabis Industry 

by Andrew Kline, NCIA Director of Public Policy

Photo By CannabisCamera.com

The illicit market is not working for anyone. The illicit market puts consumers at risk by offering untested, unregulated, and dangerous products, including “vape cartridges” filled with additives that are not intended for inhalation. These illicit vape products alone have caused 2,768 injuries and 64 deaths to date nationally. Pop-up dispensaries are selling illicit, unregulated, and untested products to unwitting consumers. Unscrupulous people are unlawfully selling cannabis products over the internet in violation of state and federal law, and online platforms are enabling the illicit market by advertising for illegal online and brick and mortar stores. Counterfeit and ready-to-fill packaging is being sold with fake lab results, batch numbers, and barcodes. Illegal growers are causing serious environmental harms. Even illicit market operators with the best intentions still put consumers at risk when they sell untested products produced in unregulated facilities.  

And these illicit operators pose an existential threat to the regulated markets that voters have demanded.  Operators are laying out significant funds for licenses and compliance to compete against an illegal, untested, unregulated, untaxed marketplace. Law enforcement is playing whack-a-mole. Consumers are often unaware of which operators are legal, particularly where illegal operators often have a veneer of legitimacy or have stolen the intellectual property of these regulated businesses to gain consumer trust. We need to make certain that reliable and safer products (tracked, tagged, and tested) are being sold in the regulated market. Trust in the safety of the supply chain is key here, with laboratory testing, traceability, and safeguards (eg: ability for recalls) as mandatory prerequisites. 

On February 19, 2020, NCIA, along with NCIA’s Policy Council, former Boston Police Commissioner Ed Davis, and Commissioner Britte McBride, public safety appointee on the Massachusetts Cannabis Control Commission, partnered to facilitate an important discussion with law enforcement, advocates, and industry stakeholders seeking solutions to the illicit cannabis market. The summit brought together federal, state and local law enforcement; state regulators, cannabis entrepreneurs and multi-state operators, ancillary technology companies, and social equity experts. The purpose of the summit was to dialogue about the illicit cannabis market with the goal of developing recommendations on resources, policies, best practices, and public-private partnerships to share information.

Here are some key takeaways:

First, the cannabis industry needs to help law enforcement find alternatives to arrest and incarceration. Some states have been creative in their approach to combating the illicit market, by locking doors and shutting off electricity and water, levying fines, and prosecuting tax evasion. It is essential that we rely most heavily on alternatives to arrest and prosecution so that we don’t perpetuate the myriad problems associated with the “war on drugs.” 

Second, the industry must better define the illicit market. The illicit market looks very different in Idaho than it does in Colorado. In Idaho, all sales are illegal and diversion from legal states into Idaho is a serious problem. In Colorado, state regulators are concerned about unsafe products being manufactured and sold outside of the state regulatory regime. So, we need to take a hard look at the products that are causing the most significant problems (injuries and deaths) and focus our attention on the most serious of those cases. Until we prioritize what we deem to be illicit market activity, it will be difficult to prioritize limited law enforcement resources. 

Third, the industry needs to definitively determine the root cause of the illicit market. We know that three probable causes of illicit market activity are: (1) lack of legal access to cannabis and cannabis products and (2) price disparity between legal and illicit markets, largely due to high taxes of legal products, and (3) a lack of economic opportunities in marginalized communities causing people to turn to illicit sales. But, what are other causes and effects? 

Fourth, the industry needs a forum for collaboration with law enforcement. The middle of a crisis is not the time to develop relationships. 

Fifth, the industry needs a pathway for illicit market operators to enter the legal market. We can’t displace the illicit market unless we create a pathway for previous illicit market entrepreneurs to enter the legal market. That means that states must create realistic pathways to enter the regulated market for legacy illicit market actors. There are an increasing number of potential models here, from the states such as Massachusetts (which has led on attempting to prioritize social equity during license application processes) and Illinois (which made such pathways a key point in the legislation to create a legal market) to industry groups such as the Minority Cannabis Business Association (which has published recommendations for state regulators intent on incorporating social equity requirements into their licensee applications). 

Sixth, law enforcement has competing demands and needs help prioritizing cases. What are the most egregious cases that warrant criminal arrest and prosecution? What are the cases that warrant automatic expungement? And what do we do with the cases that fall in between? 

Finally, the industry needs to speak with one voice and start rowing in the same direction. The industry needs national messaging from states that have a regulated market to help dispel myths and prepare warnings for responsible use. We need to share information on packaging and labeling, testing, universal symbols, etc., nationally. And most significantly, the industry needs to start speaking with one voice and work to bring legacy businesses into the regulated market. NCIA’s Policy Council is committed to continuing efforts to create a safe place for everyone in the industry to begin that dialogue. 

Andrew Kline is the Director of Public Policy for the National Cannabis Industry Association and leads NCIA’s Policy Council. He can be reached at Andrew@TheCannabisIndustry.org 

Video: Episode #2 of NCIA Today – #NECannaBizCon recap, Safe Vaping, Illicit Market Summit, and more!

Tune in to episode #2 of our new monthly video series: NCIA Today!


Off the top, Bethany looks back at #NECannaBizCon in Boston, MA this past month, our first trade show of 2020.

In our policy update, Bethany discusses “The Key to Consumer Safety: Displacing the Illicit Cannabis Market – Recommendations for Safe Vaping,” a recent report produced by our Policy Council and informed by a variety of subject experts, with NCIA Director of Public Policy Andrew Kline.

Oour annual in-person member policy and government relations update event series, the Cannabis Caucuses, are only days away in March. See where your caucus is happening!

We’ll see you next month for NCIA Today!

Committee Blog: Interstate Cannabis Commerce Will Benefit Public Safety, Consumer Choice, and Patient Access (Part 2)

By Sean Donahoe, Founder and CEO, Sungrown Developments Inc.
Member of NCIA’s State Regulations Committee

In Northern California’s legendary cannabis growing region of Mendocino, the elected county sheriff was recently a competitor at a homebrew festival, jovially pouring samples of his “Pretty Sour Powerful Sider” (jokingly referring to the “Public Safety Power Shutoffs” recently implemented by the electricity utility PG&E to prevent wildfires.) While this relaxed scene of neighbors bonding in the wake of shared inconveniences was not exceptional in itself, here, Sheriff Allman was posing for selfies with licensed (but possibly a few unlicensed) cannabis cultivators sharing the liquid bounties of harvest for the benefit of a local nonprofit.

For nearly a decade, the elected officials and staff of Mendocino county have worked together to normalize the local cannabis farmers by providing a pathway for medical cannabis cultivation permits, long before the state established a licensing system. This public policy process brought once-outlaw cannabis growers into conformance with every regulation of modern life: from building code standards to streambed alteration regulations to the quantification of gross receipts for tax collection. Bringing regulators onto these farms has curtailed previous practices that may have threatened consumer safety: pesticide and other chemicals are now tracked and regulated, while every gram can now be tracked back to its very plot of origin (in case of a safety recall or other concerns post-harvest.) This has been unquestionably difficult for and disruptive to many heritage and small farmers, but it has also allowed in these regions for simple scenes of social bonding and neighbors trusting neighbors again, as participants in the illicit sector were normalized into first their local county’s community then into a system of state license and next (hopefully soon) into a web of regulated interstate commerce. The process of bringing every farm into the regulated supply chain is far from complete, of course, and there are still illicit operators producing for consumers in urban areas in the state and beyond.

Rather than dwell on the incomplete success of California’s ongoing efforts to bring order to the world’s largest cannabis marketplace, it is essential to focus on the quality of life benefits from every cannabis operation successfully brought over from the traditional market to the regulated sector. Each licensed operation makes for one more safe workplace, one more source for lab-tested products for consumers and patients, and one more farm abiding by environmental regulations while providing stable employment and economic sustainability in rural communities. Under the previous medical cannabis paradigm, while there was certainly an abundance of responsible operators, there was virtually zero guidance from the state on matters of workplace safety, manufacturing standards, or environmental compliance. We are now several years into a robust legislative and administrative rulemaking process that has established a (mostly) clear set of rules of the road for commercial cannabis activities. It has unquestionably been a bumpy road for many of the legacy farmers to comply with new regulatory standards, but we are nonetheless able to say that there are now thousands of well-regulated cannabis farms in California (and southern Oregon) eager to sell their clean and craft quality products in a hopeful system of interstate commerce.

Has every cannabis farm in California transitioned? Of course not, but neither have the illicit cannabis economies been entirely supplanted by adult-use cannabis retailers in Colorado and Washington. Sensible and sustainable cannabis policy reform is a process, not a simple flipping of a switch from “illegal” to “legal,” and Americans should be realistic about the progressive and iterative nature of this process. This process, like most evolutionary processes, has already experienced several inflection points, transformative moments that noticeably shifted public opinion or opened up new frontiers in policy reform. While the earlier era of medical cannabis state laws certainly created a base of public opinion and laws, it was questionably the passage of adult-use ballot measures in Colorado and Washington which brought onto the global stage and accelerated the awareness that adult consumers could buy cannabis in clean, responsible retail locations rather than furtive or even dangerous transactions in the illicit marketplace

Throughout this policy process, we have established that licensed retail options can be scaled without negatively affecting public safety and are highly efficient competitive enterprises, offering consumers ample product selection and low prices. In both Colorado and Washington states (but also in later states) we have seen imbalances for some time as market forces, regulatory factors and new cultivation capacity coming online have all helped to create price fluctuations, product shortages, and other supply disruptions. These disruptions were not unique to these early states and will likely continue in every market as new in-state regulated options come online in fits and starts (but when interstate commerce becomes possible we should expect significant price fluctuations unlike any seen to date.) During these fiscally trying periods, we have often seen cannabis operators attempt to cut corners on compliance to make ends meet, which can lead to compromised consumer safety and public safety. The goals of consumer availability and cost competitiveness should be foremost in the minds of policymakers crafting cannabis policy reform nationwide, most notably in the anticipated markets of the Northeast. As these next anticipated adult-use states are designing the framework of their retail and distribution systems, strong consideration should be taken on the potential benefits of quickly and effectively scaling their programs by incorporating interstate commerce as soon as (politically) possible.

The Interstate Commerce Conversation

As the serious policy conversations about compliant interstate cannabis commerce begin, it is helpful to study how in our proverbial laboratories of democracy we can see that decreasing retail friction and shifting consumers from the illicit marketplace benefits crime reduction efforts and improves overall public safety. We should also note that retail cannabis sales have continued to grow in Colorado and Washington, even after the initial novelty and the surge of tourism waned, while legal sales have supplanted illicit sales. These early-adopting states have created models that are addressing consumer demand as national interest in cannabis for wellness and adult-use purposes are soaring and the cultural normalizing continues to occur on a global scale. Interest is high, consumer demand is real, and evidence shows that our drug reform policies should be crafted to bring every cannabis consumer transaction into the regulated supply chain in order to fulfill the demand while benefiting from increases in public safety. Interstate commerce could provide not only safer products but also a greater variety of quality and highly competitive offerings. For medical patients and wellness-oriented consumers, interstate commerce may be the only viable means of access for certain formulated cannabis products or cultivars, especially in smaller state markets. 

In addition to the above benefits, regulated interstate cannabis commerce system could provide a more robust and differentiated production and distribution network combined with the ability to rapidly scale retail sales and address insufficient cultivation capacity in new adult-use markets. Cannabis consumers are price sensitive and illicit market retail options continue to entice consumers in states with functional adult-use programs such as California (or Canada), where there is an insufficient amount of licensed retail options to address total consumer demand.  With the beginning of adult-use sales in Illinois and larger adult-use states yet to come, it is frankly a bit difficult to envision how total consumer demand will be able to be fulfilled in any near term by relying on licensed cannabis cultivated in-state alone.

The Safe Vaping Discussion

While moving to allow interstate commerce will best position licensed operators to compete with the prices available to consumers in the illicit sector, moving towards a borderless system of production and distribution will also increase safety and access for patients and consumers. Most prominent is the recent nationwide discussion on vaping and vaping-related issues, where tainted products and resultant injuries have been found in the unregulated, illicit sector (or in a very few instances from licensed but arguably under-regulated sources.) Notably, NCIA’s Policy Council established a Safe Vaping Task Force to work on these issues and has released a more comprehensive document advocating for the expansion of a regulatory approach for the safe manufacturing and distribution of cannabis products, whether vape cartridges or otherwise.

The issue of vaping extends to broader issues of product safety including educational campaigns, quality assurance, and testing programs, supply chain integrity, track and trace, and other reporting systems, and (when all else fails) a capable and sophisticated product safety recall system and these are all necessary components of a well-regulated marketplace. These consumer safety programs have already been carefully designed and stress-tested in Colorado and California and the insights from these systems and those in other states should be incorporated into the crafting of interstate cannabis policy (which will require significant harmonization of Certificates of Analysis and testing standards, packaging and labeling standards, etc., again all of which will benefit patients and consumers by offering greater predictability and reliability of their preferred products.)

Multi-State Coordination

In various forums, we have begun to see state regulators liaise with each other and we hope to see more coordination in the future and potentially an earnestness in harmonizing standards where statutorily possible. This multi-state coordination on product safety standards would be accelerated as part of the regulatory coordination efforts that are likely necessary for interstate commerce and, again, consumers and patients will benefit from safer cannabis and cannabis products, and we see NCIA as the critical player in this coming national conversation. In conclusion, moving to a system of regulated interstate cannabis commerce will have tangible benefits for the general public, for consumers and patients and I encourage forward-thinking members of the industry to participate and help manifest a system of interstate cannabis commerce with NCIA, its Allied Associations and other industry groups.


After studying Russian affairs and working as a political consultant, Sean Donahoe co-founded the California Cannabis Industry Association. He served as its Deputy Director through 2014 when he transitioned to consulting for investors and operators, communicating with public stakeholders, serving on local government committees, and advising industry trade groups. He holds an MSc in Government from the London School of Economics and is CEO of Sungrown Developments Inc., an advisory firm and holding company in Oakland, California.

NCIA Policy Council Publishes New Safe Vaping Recommendations Report

by Morgan Fox, NCIA Director of Media Relations

In September of last year, reports began surfacing of mysterious respiratory illnesses generally associated with the use of vape cartridges, including those containing cannabinoids. Over the following months, reports of these cases climbed to more than 2000 nationwide, including more than 50 deaths. The Center for Disease Control and state health agencies struggled to determine the proximate causes, but it became increasingly clear that the vast majority of these cases were linked to unregulated cannabis vape products. As the focus began to narrow on the presence of Vitamin E acetate and other additives in unregulated products, NCIA and members of the industry urged producers, regulators, and lawmakers to take steps to prevent the use of these substances in vape cartridges and enact changes that would make legal, licensed, and tested products competitive with illegal market products that were making people sick.

New reports of this illness – called EVALI – have slowed, and the CDC has ended its official state of emergency related to vaping. However, there is still significant confusion on the part of stakeholders and the government about how to avoid similar issues in the future and the huge causal role prohibition played in this outbreak. In an incredibly misguided statement earlier this month, the CDC even lumped all “commercial” sources for vape cartridges together as a source for one sixth of the harmful products, despite only a handful of links to regulated businesses out of thousands of cases. This is especially troubling for states like California, where no cases were linked to regulated businesses and where unlicensed storefronts greatly outnumber those with licenses. Equating licensed, regulated businesses to those operating without oversight or regulations completely misses the mark and creates a dangerously inaccurate set of assumptions that could lead to even worse public health issues in the future.

As such, NCIA is proud to be releasing a thorough report on EVALI this week entitled “The Key to Consumer Safety: Displacing the Illicit Cannabis Market – Recommendations for Safe Vaping” which was produced by our Policy Council and informed by a variety of subject experts. This paper explores not only the additives that were the primary culprit but also potential areas for future concern such as heavy metals in vape cartridge manufacturing, potential problems caused by poor temperature control, and the use of certain types of flavorings and terpenes. It clearly lays out suggestions for both producers and regulators that will help avoid potentially dangerous products in the legal market, as well as ways to make sure that unregulated counterfeit products don’t make it into the hands of consumers. Just as important, this paper offers a guide on how states – as well as the federal government – can combat the illicit market by removing the onerous burdens placed on legal businesses, lowering barriers of entry to the industry and creating easier pathways for legacy businesses to become licensed, and exploring non-criminal methods to shut down illicit operators.

Whether you are a producer, regulator, policymaker or just concerned with public health and cannabis policy, this paper is an important tool for you. We ask that you please read and share it with your networks and urge your elected representatives at every level to explore and implement these evidence-based recommendations. 

As members of the responsible cannabis industry, it is our duty to look out for the safety of cannabis consumers and shine a light on the policies that are bolstering the unregulated market.

As this paper concludes, the American consumer clearly wants cannabis products to be both accessible and legal. It’s time for the federal government to deschedule marijuana and regulate it like alcohol. Legalization through descheduling, regulation, and testing is the best path forward to keeping consumers safe. In the end, sensible regulation and a clear path to licensure and compliance will be the most compelling force in driving people from the illicit market to the state-legal market.

DOWNLOAD THE REPORT

Call For Signatures: Move The SAFE Banking Act Through Senate Committee

The National Cannabis Industry Association, in collaboration with other cannabis-related organizations, drafted a letter to Senate Banking Committee Chairman Mike Crapo (R-ID), urging him to move the House version of the SAFE Banking Act through committee and to the Senate floor for a vote. 

The letter also addressed serious concerns the industry finds with one of Sen. Crapo’s suggested amendments to limit the provisions of the SAFE Banking Act to products containing less than 2% THC.

Now we need the help of businesses in the cannabis industry to join us in letting Chairman Crapo know how important it is to move the SAFE Banking Act through Committee this session of Congress. Please follow the link below to add your name to the growing list of industry voices calling for fair and safe banking access.

SIGN THE LETTER NOW

 

Webinar Recording: NCIA’s Official Response To USDA’s Hemp Rules

Watch this recording if you missed the live webinar on December 10 about NCIA’s official response to the USDA’s hemp rules.

On October 31, 2019, the USDA released its Final Interim Rule governing the domestic production of hemp within the United States. The USDA is currently accepting public comments to its hemp rules through December 30, 2019. There are many rules that need to be changed or clarified to make the program viable, including sampling, required DEA registration for labs, a fifteen-day harvest window, and a definition of “commingling” among other potential issues. Please join Cindy Sovine and Alex Buscher to discuss the NCIA’s public comments and steps you can take to help shape the final USDA hemp rules.

Download the Slide Deck

NCIA Committees: Quarterly Update And A Look Ahead

NCIA committees are an opportunity for members to get directly involved in specific industry issues and sectors. These volunteer-driven efforts engage members’ expertise and passion to drill down in areas of expertise and passion to effect change, provide professional development opportunities, and develop best practices and guidelines that will shape the future of our industry.

We recently checked in with these various committees to learn more about what they’re up to and what projects they’re working on this term. Get updated on their activities below.

Scientific Advisory Committee (SAC)

SAC is comprised of practicing scientists, physicians, and other scientific field professionals. SAC’s vision is to disseminate educational materials to NCIA members on scientific topics in the cannabis industry and to advise other NCIA committees as they work to develop standards and guidelines, ensuring that any formal recommendations produced are scientifically sound, sustainable, and legitimate.

SAC is currently working on five projects, all of which are in the outline or first draft phase:

1) Blog on the science behind why ‘sativa’ and ‘indica’ are no longer the best way to classify cultivars.
2) White paper on how cannabis may help the opioid crisis with a review of scientific studies that show how cannabis can be an alternative for pain management.
3) Blog calling doctors to action in the cannabis industry and why it is important for doctors to get involved.
4) Blog on the vaping crisis from a physician’s point of view. 5) General audience and technical white papers on the Endocannabinoid System.

Marketing & Advertising Committee (MAC)

The MAC coalesces the talents of 20 of the industry’s top-tier marketing and communications professionals around three focus areas: Education, Advertising Access and 2020 political goals. We use our personal, professional and business skills and networks to help build a responsible, legal cannabis industry. The committee is producing best practices, webinars, workshops and social media campaigns to aggregate and generate support from NCIA members, the public, media, government and business leaders.

In our first quarter, our Education Sub-Committee began creating a Speakers Bureau to provide qualified experts for conference organizers and media who will address topics of interest and concern in the industry.

Our Advertising Access Sub-Committee is completing best practices for advertising, making presentations to media groups and expanding Advertising/Labeling Do’s and Don’ts from five states to all legalized states.

Our 2020 Sub-Committee is driving awareness around policy change through panel presentations, preparing a campaign supporting pro-cannabis candidates and is encouraging professionals from the cannabis industry to run for office.

Cannabis Cultivation Committee (CCC)

We are working on producing our first podcast episode, which will feature top-notch farmers who are doing great work employing sustainable practices in indoor facilities.

There will be more podcast episodes to come on other hot cultivation topics.

State Regulations Committee (SRC)

The State Regulations Committee has been hard at work on a number of exciting pieces of work-product that should be available soon. For example, we hosted a webinar on December 3, 2019, in which the expert members of the Committee break down what operators need to know about Michigan’s adult-use market’s rules before it launches in 2020.

The State Regulations Committee has work-product in the pipeline on a number of topics of great importance to members. That includes a recurring guidance series on social consumption in markets across the nation, posts analyzing challenges in local/municipal regulation, a focus on the crucial questions of promoting social equity, and much more.

Cannabis Manufacturing Committee (CMC)

The Cannabis Manufacturing Committee is focusing on reviewing existing business practices and state regulations of concentrates, topicals, vaporizers and, edibles ensuring the manufacturing sector is helping shape its destiny. In this approach, we have published our first blog using lessons learned from the e-cig sector. We are also engaging with NCIA’s Safe Vaping Task Force.

CMC has created three sub-committees; GMP (Good Manufacturing Practices), Testing (from the operator’s view), and Nomenclature (providing clarity to industry language). GMP has its first draft complete and will be ready for publication in November. Nomenclature has a concrete draft to review for publishing its first part of a multi-piece series.

Packaging & Labeling Committee (PLC)

The PLC has 4 subcommittees: Honesty & Labeling, Sustainability, Security, Next Generation Packaging. Each subcommittee has set a goal of producing 3 or more blogs and 1 webinar. We have a very motivated and strong group this year. Our biggest vision for the year is to use our data, blogs, white papers, webinars, and PLC members’ knowledge to create a document reflecting the industry views on what federal policy should be around packaging and labeling.

PLC members are speaking in Boston at the Northeast Cannabis Business Conference on a panel titled “The Future of Cannabis and Packaging.”

Retail Committee (RC)

The Retail Committee is working on a compilation of SOPs for retail compliance to turn into a white paper and webinar series, combining efforts from various retailers in several states/markets in order to be most useful to the national audience.

Facilities Design Committee (FDC)

As a new committee, we have established a mission statement: To provide access to resources for the NCIA community and regulators that will inform the design and use of GMP-driven, sustainable and operationally efficient facilities to position our industry to compete in the global marketplace.

We have established two sub-committees: Standards and Sustainability. The Standards Sub-Committee is linked through membership to ASTM’s D37 committee on cannabis. 

Banking & Financial Services Committee (BFSC)

Our vision is to provide reliable, actionable and current information to NCIA’s members via committee member videos and a monthly newsletter. The committee will also be coordinating “NCIA Panels” at Bank and Credit Union conferences throughout the country to spread awareness to the issue and bring these institutions closer to the industry.

Lastly, the committee will be contributing language to the Policy Council for revision of the current version of the SAFE Act.

We will keep the NCIA updated as the Bank and Credit Union panels are confirmed. The committee will continue to pair any operator with the best banking option based on a myriad of factors, free of charge.

NCIA’s Safe Vaping Task Force Submits Testimony

Last week, the Center for Disease Control (CDC) identified a probable proximate cause of recent vaping injuries and deaths. Simultaneously, the United States Senate (HELP Committee) noticed a hearing for tomorrow (Wednesday) on the vaping crisis, where CDC officials will testify.

NCIA Policy Council’s Safe Vaping Task Force has submitted testimony for the record, which can be found here.

For weeks, NCIA’s Policy Council has been calling for de-scheduling and regulation at the federal level to displace the illegal, untested, unregulated illicit market. It’s time for Congress to act. We can no longer sit by and watch as people are sickened by unregulated, untested, and dangerous products from the illicit market.

Read NCIA’s Submitted Testimony

NCIA’s Safe Vaping Task Force Latest News And Recommendations

by Andrew Kline, NCIA’s Director of Public Policy

In response to the recent wave of vape-related illnesses, NCIA’s Policy Council has formed a Safe Vaping Task Force. The purpose of the task force is to unify the industry by communicating clearly in response to press reports and state/federal governmental actions, and by clearly articulating the state-legal cannabis industry’s obligation to act with integrity as responsible actors. The task force is publishing summaries of recent developments and the cannabis industry’s response, producing and publishing a white paper on safe vaping, unifying the industry’s response, and engaging federal and state/local governments as appropriate. Members of the task force include medical doctors, scientists, cannabis license holders, and relevant ancillary businesses. 

Here’s the latest about safe vaping from the news this past week:

  • As of October 22, 2019, 1,604 (up from 1,479) lung injury cases associated with the use of vaping products have been reported to CDC from 49 states (all except Alaska), the District of Columbia, and 1 U.S. territory. 34 deaths (up from 33) have been confirmed in 24 states. The CDC is updating this information every Thursday. The good news is that it appears that illnesses and deaths are slowing down. The bad news is that we still don’t know the proximate cause and the federal government has not communicated a timeline by which we will have better information.

  • Since the specific compound or ingredient causing lung injury is not yet known, the CDC continues to recommend refraining from the use of all vaping products. NCIA’s Safe Vaping Task Force is hopeful that the CDC and FDA will act swiftly to ascertain the proximate cause of the vaping problem, expose and address those specific issues head-on, and communicate clearly the specific dangers to the American consumer.

  • Although cannabis has only been legal in Massachusetts for less than a year, the state is already putting on the breaks. Massachusetts is the first state to ban the sale of all vape products, unleashing a major financial blow to the state’s marijuana businesses and sending consumers to the dangerous, unregulated and untested illicit market. Massachusetts Gov. Charlie Baker secured approval from the Public Health Council to issue an emergency regulation to maintain the statewide retail ban on the sale of all vaping products. A local judge simultaneously issued a ruling allowing for medical cannabis patients to purchase crushed flower for use in vaporizers. The emergency regulation keeps the vaping ban in place while also creating a three-month timeline for rulemaking and public hearings.

  • California lawmakers are also considering an outright ban of all vape products, including nicotine and THC. This potential action comes on the heels of Charlie Baker, Governor of Massachusetts, banning all vaping products for four months.

  • Marijuana became legal for adults over 21 in Colorado in 2014, yet even with 5 to 6 years of regulatory experience, Colorado has not banned all vape products. Instead, Colorado has conducted public hearings to determine what specific products or ingredients should be banned, based on scientific evidence. Colorado is in the final stages of finalizing permanent rules for adoption of a prohibited ingredients list (due Nov 5). It should also be noted that Colorado has not attributed any deaths to THC vaping, an indication that the state regulatory regime is working.

  • A judge in Utah ruled on Monday that the state cannot immediately ban flavored e-cigarette products. The state had justified emergency restrictions on flavored nicotine by arguing that they were a gateway to vaping THC products. This leaves the state with a 120-day rule-making process.

NCIA Task Force Recommendations

  • NCIA’s Safe Vaping Task Force believes that a more thoughtful approach based on science, like the one undertaken by Colorado, will yield better results for policymakers and patients alike.

  • NCIA continues to advocate for descheduling, federal oversight, regulation, and standardized testing.

  • NCIA recommends that manufacturers avoid untested additives and flavorants.

  • NCIA recommends that when creating novel formulations, manufacturers conduct a scientific analysis that leverages the knowledge base of other inhalation products. 

Andrew Kline is the Director of Public Policy for the National Cannabis Industry Association and Chair of the Policy Council’s Safe Vaping Task Force. 

Update From NCIA’s Safe Vaping Task Force

by Andrew Kline, NCIA’s Director of Public Policy

In response to the vaping crisis, NCIA’s Policy Council has formed a Safe Vaping Task Force. The purpose of the task force is to unify the industry by communicating clearly in response to press reports and state/federal governmental actions, and clearly articulating the state-legal cannabis industry’s obligation to act with integrity as responsible actors. The task force will be publishing summaries of recent developments and the cannabis industry’s response, producing and publishing a white paper on safe vaping, unifying the industry’s response, and engaging federal and state/local governments as appropriate. Members of the task force include medical doctors, scientists, cannabis license holders, and relevant ancillary businesses.

Here’s the latest about safe vaping from the news this week:

  • The New York Times reported on October 21, 2019 that while the government and researchers have expended significant resources into studying nicotine delivery devices, federal law has not allowed research into the health effects of cannabis because it is classified as a controlled substance with a high potential for abuse. Therefore, we don’t have much scientific knowledge about what THC vaping does to the lungs. The Times report added that even in states where cannabis is legal, counterfeit vape cartridges (vape carts) are cheaper than the regulated, licensed, tested and taxed products. 
  • The Boston Globe reported on October 21, 2019 that a state court judge ruled that the four month ban on nicotine vapes by Governor Charlie Baker was unconstitutional because it did not allow for input from affected businesses and the public. The Court ruled that nicotine vape sales must resume on Monday unless the Baker Administration submits the nicotine ban for consideration as a formal emergency regulation before then. The decision did not impact THC vapes. 
  • The Senate International Narcotics Control Caucus will convene this week Wednesday, October 23 to discuss marijuana and public health, featuring panels that include witnesses from federal agencies and academia. The Caucus is co-chaired by Senators John Cornyn (R-TX) and Dianne Feinstein (D-CA). Senator Cornyn is an outspoken opponent of cannabis legalization, stating recently that he wants to hold this hearing in advance of any vote on SAFE Banking. Surgeon General Jerome Adams, who has been an outspoken critic of marijuana reform, is scheduled to testify. Also testifying will be Nora Volkow, Director of the National Institute on Drug Abuse (NIDA). Volkow has opined that the Schedule I status of marijuana under the Controlled Substances Act is inhibiting research. This is consistent with NCIA’s position, which is that we need to de-schedule, regulate, and test. 
  • CDC Principal Deputy Director Anne Schuchat emphasized last week that the majority of vaping-related injuries associated with THC-containing cartridges are being traced back to the illicit market, rather than state-legal cannabis shops. 
  • Former Food and Drug Administration (FDA) Commissioner Scott Gottlieb said last week that cannabis should be de-scheduled and that the federal government should regulate marijuana. 
  • California lawmakers are considering an outright ban of all vape products, including nicotine and THC. This potential action comes on the heels of Charlie Baker, Governor of Massachusetts, banning all vaping products for four months. 
  • Anti-marijuana legalization group Project SAM (Smart Approaches to Marijuana) hired three new lobbyists to help fight SAFE banking and other cannabis legislation on Capitol Hill and sent a letter this week from the organization’s science advisory board to congressional leadership urging them not to support cannabis legislation. 
  • As of October 15, 2019, 1,479 lung injury cases associated with the use of vaping products have been reported to CDC from 49 states (all except Alaska), the District of Columbia, and 1 U.S. territory. Thirty-three deaths have been confirmed in 24 states. The CDC is updating this information every Thursday. 

 

Download NCIA’s Policy Council report: Adapting A Regulatory Framework For The Emerging Cannabis Industry

 

Former FDA Commissioner Calls For Descheduling And Federal Regulation

by Andrew Kline, NCIA’s Director of Public Policy

With uncertainty about the proximate cause of the vaping crisis continuing to roil state regulators, and state governors trying to determine the right short-term solution to protect the public health, the former Commissioner of the FDA has a longer-term plan. Former Commissioner Scott Gottlieb is rightly calling for descheduling and federal regulation in an op-ed in the Wall Street Journal. NCIA made the same argument in our Policy Council’s recent white paper on regulating cannabis post-legalization and in our public responses to the vaping crisis. 

While no one yet knows for certain what has been causing these injuries and deaths, it is readily apparent that unregulated and untested products are extremely dangerous and continue to infiltrate the market. Just last week, a mother and her two sons were arrested for allegedly illegally filling over 30,000 vape cartridges in Wisconsin from their home. That burgeoning illicit and untested market poses real risks to American consumers. And the best way to eliminate the illicit market is to create opportunities for consumers to purchase products from legal dispensaries and market awareness of the benefits of purchasing from those regulated markets. 

For example, if consumers know that legal dispensaries are selling regulated products that have been tested to improve consumer safety, then they will be more inclined to stop purchasing from the illicit market. People already know that when they step foot into a grocery store, the foods they eat and the drugs and dietary supplements they take are part of a supply chain designed to improve safety. That is because they have placed trust in the USDA and FDA. And no better way to build consumer confidence, than to make sure that trusted federal agencies are in charge of promoting public health in the cannabis industry. 

We can’t continue to leave the cannabis industry in a state of uncertainty. It’s time to deschedule, regulate at the federal level, and require mandatory lab testing. We must displace the illegal, unregulated and untested illicit market. There is no plan B. 

Andrew Kline is Director of Public Policy for NCIA and Chair of NCIA’s Safe Vaping Task Force 

What The Cannabis Industry – And Congress – Can Do To Help The Vaping Illness Outbreak

by Morgan Fox, NCIA Director of Media Relations

In recent weeks, the reports of mysterious respiratory illnesses tied largely to unregulated cannabis vaping products, as well as some other products including nicotine vapes, have turned from a trickle into a steady flow. The most recent count is at over 1000 cases, including more than a dozen deaths. One of the most troubling aspects of this outbreak is that it is still unknown what exactly is causing these illnesses. Early research seems to be pointing to additives or thickening agents as the most likely culprit, but other causes are being explored such as the presence of pesticides and fungicides that create dangerous byproducts, faulty delivery devices, problematic consumption patterns, and pre-existing medical conditions. 

One thread seems to tie all these cases together: almost all of them involved untested products that were produced and purchased on the illicit market.

At its roots, however, is the same thing that has caused most of the other problems associated with cannabis: prohibition.

Outdated federal policies are responsible for the existence of the underground market for this popular substance in the first place. Their dominance over this medically beneficial plant for nearly a century continues to block research, discourages states from regulating cannabis and making it legal for adults, prevents the federal government from establishing uniform safety standards or providing guidance to states that are implementing sensible policies, and make it harder for legal businesses to displace illicit operators around the country. This is in addition to the suffering and harm caused by the criminal enforcement of these policies, which disproportionately impacts low-income communities and people of color.

Unfortunately, some governmental agencies are glossing over these facts. Last month, Massachusetts instituted a four-month ban on all vaping products, and on Friday the Food and Drug Administration issued a warning urging people to stop consuming any vape products containing THC, despite THC itself and legal products generally not being implicated in these cases. Other states and localities are considering total bans as well.

The cannabis industry is deeply troubled by this outbreak, but we are also concerned that reactionary responses to it at the state and federal levels could make the problem even worse. Preventing the sale altogether of regulated and quality-controlled cannabis products could easily drive more consumers to purchase potentially dangerous products from the illicit market. The lack of competition from legal, licensed producers and retailers could also embolden irresponsible underground operators to drastically increase production in order to meet demand, as well as cut corners even further and make their products even more unsafe. Such reactions are a common response to tragedies like this, but they often cause more harm than good in the long run.

Rather, states should be reviewing their regulations regarding testing and labeling and should be in close contact with federal and state medical authorities so that they can incorporate the latest information into their regulatory response. Producers should also be reexamining their methods and avoiding the use of any additives that have so far been linked to these cases.

At the federal level, the best way to help fix this issue, as well as prevent further outbreaks from happening at all, is to end prohibition.

On October 3rd, NCIA delivered a letter to every member of Congress signed by more nearly 800 business leaders, advocates, and policy experts, which urges them to immediately work to remove cannabis from the Controlled Substances Act and work to regulate the substance at the federal level. This letter references a paper produced by NCIA’s Policy Council released on October 1 that suggests a regulatory framework for various cannabis products through existing federal agencies, most notably the FDA and the Alcohol and Tobacco Tax and Trade Bureau (TTB).

The letter closes with: “It is clear that the American public wants quality-controlled cannabis products made available for adults and patients. The recent news is, unfortunately, yet another reminder that there is no time to waste. Our industry wants to provide the products voters demand with a tireless focus on improving consumer safety. While state regulators and licensed businesses appear to be doing an excellent job at keeping potentially dangerous products out of the legal market, federal descheduling and regulation will allow more research and help states continue to improve their regulatory activities and oversight, as well as provide universal standards for safety. We are ready to work collaboratively with federal lawmakers, the same way we have at the state level for over a decade. Please let us know how we can help move the ball forward on descheduling legislation. Lives are literally at stake.”

That pretty much says it all. It is up to members of the legal cannabis industry to continue to prioritize consumer safety and do everything in their power to make sure they are going above and beyond state regulatory requirements in this area. But it is ultimately up to Congress to end prohibition, regulate cannabis intelligently, and help us replace the illicit market to the greatest extent possible. With your support, we can continue to work with lawmakers every day to help make this a reality.

 

 

Webinar Recording: SAFE Banking – What’s Next?

In case you missed this live webinar from September 30, watch this recording to learn more about cannabis policy and legislative priorities for the 116th Congress. You’ll get the latest updates on the SAFE Banking Act and other cannabis legislation being considered in this Congress. You’ll also get an update on NCIA’s plan for how cannabis should be regulated by the federal government post-legalization. Lastly, you’ll learn more about how NCIA’s plan to federally regulate can help to solve issues around vaping.

Access the presentation slide deck here. 

How Will The Federal Government Regulate Cannabis? We Have a Plan.

by Andrew Kline, NCIA’s Director of Public Policy

NCIA could not be more proud of the collective efforts of the cannabis industry in passing SAFE Banking legislation in the House. Last week was a truly historic moment for the industry. Now, on to the Senate!

While we always relish in victories, we can’t lose momentum, and we need to start thinking about what comes next. As luck (and a bit of hard work) would have it, NCIA has a plan. While NCIA has been fully supportive of incremental steps like SAFE Banking, we believe that the only long-term viable path forward for this industry is descheduling. It’s the only way to solve social equity, it’s the best way to fix 280E, it’s the way that we start looking at cannabis through a public health lens (instead of a criminal enforcement lens), it fixes issues around interstate commerce, and it’s the only way to end the unsustainable federalism clash.

In addition to de-scheduling, our plan calls for cannabis products, like other highly regulated consumables, to be regulated by the government agencies that currently regulate most food and drugs, primarily the Food and Drug Administration (FDA) and the Alcohol and Tobacco Tax and Trade Bureau (TTB) within the U.S. Department of the Treasury.

Under our plan, cannabis products would be divided into four categories, based on chemical components, safety, intended use, and consumption method. Each of these groups would be regulated through a separate regulatory “lane” tailored to the public policy issues raised by that particular classification. The four lanes are:

Lane #1 — Pharmaceutical drugs (e.g., Epidiolex; Marinol)

(Regulated Like Prescription/OTC Drugs; Lead Federal Regulator: FDA) 

Lane #2 — Ingested, inhaled, or topically applied products with more than de minimis amounts of THC (+0.3%)

(Regulated Like Alcohol; Lead Federal Regulator: TTB) 

Lane #3 — Ingested and inhaled products with de minimis amounts of THC (<0.3% THC) (e.g., CBD, CBN, and CBG)

(Regulated Like Food/Dietary Supplements; Lead Regulator: FDA)

Lane #4 — Topically applied products with de minimis amounts of THC (<0.3% THC) (e.g., CBD, CBN, and CBG topicals)

(Regulated Like Cosmetics; Lead Federal Regulator: FDA)

Photo By CannabisCamera.com

We firmly believe that our plan sets the stage for the weeks and months ahead. We hope that lawmakers will heed our call for de-scheduling and federal regulation. There is no other viable option for the burgeoning cannabis industry. As always, NCIA stands ready to provide technical assistance to lawmakers and to the Executive Branch as we forge ahead. There is no stopping us now.

If you’re interested in working on public policy issues like this one, please reach out to me to inquire about the Policy Council. We are the think tank for cannabis and we’re just getting started. 

DOWNLOAD THE WHITE PAPER

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