Canada Legalizes Cannabis – When Will The U.S. Follow?
by Rachelle Lynn Gordon, NCIA Editorial Staff
On June 19, Canada became the first G7 nation and second in the world after Uruguay to fully legalize cannabis for adult use, paving the way for what is estimated to be a CAD$9.2 billion dollar industry by 2025. Canadian Prime Minister Justin Trudeau Tweeted in response to the move:
“It’s been too easy for our kids to get marijuana – and for criminals to reap the profits. Today, we change that. Our plan to legalize & regulate marijuana just passed the Senate. #PromiseKept”
The passing of the iconic Bill C-45, also known as the Cannabis Act, was met with raucous applause from the across the globe and sent marijuana stocks soaring. Provinces and territories now have until October 17 to develop and implement their own regulations for the sale of cannabis products; according to the federal statute, adults will be able to carry and share up to 30 grams of marijuana in public and cultivate up to four plants at home.
But when will the United States follow suit and become a part of the multi-billion dollar global cannabis market?
High Time for Federal Legalization
“With leading policymakers on both sides of the aisle calling for reform, there has never been more momentum behind the effort to replace criminal marijuana markets with regulated businesses, but we still have a long way to go.” says Aaron Smith, executive director for the National Cannabis Industry Association (NCIA).
Despite the fact that 29 states, as well as Guam, Puerto Rico, and the District of Columbia, have legalized cannabis for medical and/or adult-use, the plant is still illegal at the federal level. This has led to immense headaches for business owners within the legal space who only wish for their companies to thrive but are hindered by lack of access to traditional banking and fundraising opportunities and stuck operating within individual state lines.
Lawmakers from legal states have heard their constituents’ voices loud and clear and have joined together to develop the STATES Act, short for “Strengthening the Tenth Amendment Through Entrusting States.” Introduced by Senators Elizabeth Warren (D-MA) and Corey Gardner (R-CO), the bill aims to protect states that choose to legalize cannabis by creating an exemption to the U.S. Controlled Substances Act, and would remove industrial hemp from the Controlled Substances Act entirely. The bill would also allow banks to work with cannabis businesses more easily. Representatives David Joyce (R-OH) and Earl Blumenauer (D-OR) have already introduced a companion bill in the House.
When asked about the STATES Act by reporters, President Trump replied that he would more than likely support the measure, stating: “I support Sen. Gardner, I know exactly what he’s doing. We’re looking at it. But I probably will end up supporting that, yes.”
Full Legalization Needed for Market to Thrive
Adopting a federalist approach on the issue of cannabis law reform will certainly mean that individual states will be allowed to flourish, but it stops short of the immense financial opportunities that federal legalization could bring.
“The cannabis industry is vibrant and expanding rapidly, but until the threat of federal interference is removed, our economic potential is limited,” said Aaron Smith, NCIA. “Lack of access to financial services, exorbitant tax pressures, and the absence of interstate and international commerce are all problems that we can fix by turning up the pressure on Congress.”
U.S.-based companies and investors are missing out on huge financial investment opportunities due to cannabis’ current status as a Schedule I controlled substance. According to a recent white paper released by NCIA’s Policy Council, as of February 2018, 39 of the 89 federally-licensed producers (LPs) of cannabis in Canada were publicly traded, raising a total of $1.2 billion CAD in January 2018 alone. On June 20th, it was announced that Tilray would be joining Cronos Group as the second Canadian LP listed on the U.S.-based NASDAQ; behemoth Canopy Growth is listed on the NYSE.
In late 2017, Canopy announced the sale of nearly 10 percent of its stock to U.S.-based alcohol giant Constellation Brands (known for Corona and SVEDKA vodka) for a cool $191 million dollars. Now that cannabis is legal in Canada, there are certain to be even bigger deals fastly approaching that U.S. operators are missing out on.
Impressive Advancements are Being Made – Just Not in America
The United States is also being left behind in terms of research and development and intellectual property within the cannabis space. In countries such as Israel, where the federal government appropriates money to researching marijuana, rapid advancements are being made that could be groundbreaking – and have global effects. In 2017, there were more than 110 clinical trials involving cannabis in Israel – far more than any other developed nation. It was also recently revealed that China now holds around half of the IP related to hemp in the world. This puts Americans at a disadvantage as the rest of the world competes to create innovative and life-altering cannabis medicines and technology.
“R&D requires access to capital and federal and academic support,” explains Frank Lane, President of Cannabis Financial Network. “These remain elusive in the U.S. because cannabis remains federally illegal. The U.S. is slowly allowing more University backed cannabis research but at a much slower pace then Israel, Canada and have allowed research on a federal level for years. The U.S. will be playing catch up as medical cannabis continue to be adopted globally.
Exports Expected to Rule Canadian Market
While legal domestic sales won’t begin for several months, some Canadian LPs have already been exporting cannabis products to several countries that have approved the plant for medical purposes. It was announced last October that Cronos Group had reached a deal to put their products in over 12,000 pharmacies across Germany, where the government is choosing to use their own socialised healthcare systems to handle the distribution of cannabis product to patients. Obtaining these lucrative government contracts means big money for exporters, and unfortunately for entrepreneurs from the U.S. looking to cash in may be too late by the time legalization occurs.
“Many European and Latin American countries are approving cannabis for medical use,” Lane adds. “These are billion dollar markets that countries like Canada and Uruguay are seizing because they have federally legalized cannabis and become adept at developing pharmaceutical grade products.”
U.S. Canna-Businesses Must Double Down on Reform Efforts
Until the federal government ceases to consider cannabis a Schedule I narcotic, American businesses will continue to lag behind and miss out on multi-billion dollar opportunities. Therefore, it is more important than ever that the industry continue to communicate with policymakers in order to create impactful change – before it’s too late. Attending events such as the NCIA Quarterly Cannabis Caucus series is a perfect way to engage with local politicians and fellow entrepreneurs while also staying up to date on the latest legalization developments.
NCIA’s Aaron Smith re-caps another successful Cannabis Industry Lobby Days! Watch this video to hear more about NCIA Members’ experiences and why you should plan to join us next year in D.C.
Are you an industry leader looking to invest in continued national advocacy for the industry but not yet a member of NCIA?
NCIA’s staff and professional lobbying consultants work year-round in our nation’s capital to build support for the cannabis business community and the policy changes needed for our industry to reach its full potential. That work has led us to the tipping point we are seeing today and it’s all been made possible by the financial support of our members.
Adding your name to the growing list of responsible businesses behind this effort will bring us even closer to reaching the day when the cannabis industry is treated fairly under federal law.
Already a member of NCIA but want to enhance your support for this vital work? Sponsor a quarterly Cannabis Caucus event in a city near you! All profits from event sponsorships support the efforts of our robust team in D.C.
Our Members in Action at NCIA’s 2018 Cannabis Industry Lobby Days
by NCIA Editorial Staff
The cannabis industry has seen exponential growth in the mainstream support for regulated cannabis markets from both sides of the political aisle. This progress is a direct result of the relationships NCIA has built on Capitol Hill, as well as the personal stories told by our members each year at our annual Lobby Days events in Washington, D.C. NCIA’s 8th Annual Cannabis Industry Lobby Days, hosted May 21-23, was the industry’s most impactful fly-in yet, as our members made more inroads to Congress at a time when the nation has reached a tipping point in the fight to protect legal cannabis.
“So many more people keep coming to Lobby Days which is amazing to see,” said Karson Humiston, founder of Vangst. She’s one of Forbes’ 30 under 30 and the only female in cannabis to make the list. She’s focused on telling members of Congress about the potential for job creation and the economic impact of a fully recognized cannabis industry. “We are talking about jobs as much as possible in order to educate members of Congress about the economic stimulation regulated cannabis is bringing to the states and the need for federal legalization,” she said.
NCIA announced the release of its 2018 State Cannabis Progress Report during this year’s Lobby Days. The publication outlines a myriad of economic and social benefits already being realized by states with successful cannabis programs, including job creation, tax revenue, and reductions in crime and teen use.
So far 2018 is shaping up to be much different from the past seven years, largely because of Republican backlash against Attorney General Jeff Sessions attempting to ramp up federal interference in state cannabis programs by rescinding the Cole Memo. Historically, the GOP has been less publicly supportive of reforming cannabis laws, although there has been a strong current of support among certain segments of the party. Now, they listen and many have even joined us in support of banking and tax reforms needed for our industry to reach its full potential, in addition to their traditional support of federalism issues related to cannabis. Advocates, patients, and NCIA member-businesses all over the United States are keeping this positive momentum going.
At the Lobby Days welcome reception on the evening of Monday, May 21, NCIA Executive Director Aaron Smith said he was delighted with the turnout. “There are so many new faces, so many old friends, and Lobby Days veterans,” he told the audience of cannabis professionals, who had just arrived in Washington prior to the two full days of meetings with congressional offices. “Starting tomorrow, we will descend upon Capitol Hill to show lawmakers what a responsible, politically engaged cannabis industry looks like.” He called Lobby Days one of the cannabis industry’s most important events of the year.
NCIA member and founder of Washington, D.C.’s National Cannabis Festival and the National Cannabis Policy Summit, Caroline Phillips, said that she was proud to see so many members coming to her backyard to demonstrate their unity. “This is a really wonderful opportunity to share with members of Congress the diverse and innovative ideas of the cannabis industry and to show off the professionalism, creativity, and care that the people in the industry put into their work, “she added. “I think a lot of members on the Hill are starting to understand the cannabis industry is a lot more than just stereotypes, and for them to have one-on-one interactions with some of the best professionals in our industry is extraordinarily valuable.”
New to Lobby Days was Attorney Blake Mensing. He was eager to join the crowd of professionals to advocate for the fair treatment of cannabis businesses. “I think that this is the eighth year that this is happening really shows that the industry is coming out of the shadows and the momentum has built to the point that there’s a small probability that things are going back to the way they were [prior to the reform victories of the last decade].” Mensing founded The Mensing Group after he left his job as a Municipal Attorney in Massachusetts to start a cannabis-only practice. “It’s the first time I’ve ever had fun being a lawyer,” he remarked before heading into Senator Orrin Hatch’s (R-UT) office.
Professional football player Mike James also joined NCIA this year to advocate on behalf of his fellow athletes who would prefer to treat their health issues with medical marijuana instead of opiates. The active NFL running back has played for the Tampa Bay Buccaneers and the Detroit Lions during his career, which has wreaked havoc on his body, leaving him with chronic pain that he used to treat with opioids. “Within the NFL, I’m trying to go through their process and change policy. That way, hopefully, they can be an example for society,” he said. Currently a free agent, he’s the first and only active player with a medical marijuana card.
From the need to expand medical access to cannabis, to tax and banking reform, to addressing the injustice of racially disproportionate marijuana enforcement, NCIA hit the Halls of Congress to educate members of Congress and their staffs on what’s happening in their own backyards and the successes of regulating cannabis.
For example, when it comes to tax reform, Heather Sullivan of 3C Consulting said the cash-flow is only one of the issues they have to worry about from the 280E tax burden. “It’s a tough decision come tax season,” she said. “Do you set aside those tax rates so you don’t have that money to use for other things for your business, or do you play the game and run the risk that you’re not going to get audited?” Many cannabis businesses face similar issues, which can effectively ruin a company over time.
There were many Congressional offices that were receptive to the efforts and positions of NCIA members during Lobby Days. Heather took a meeting with Sen. Bernie Sanders’ (I-VT) office, for example, and after leaving the meeting she felt that it went wonderfully, stating, “Senator Sanders is a proponent for the safe and regulated use of cannabis whether in the medical side or the adult use side, so it was a meeting that for us was an opportunity to tell Bernie and his staff how much we appreciate the hard work that he’s done, ask him what we can do as an industry to help them continue the progress that they’ve already made and learn more about where his focus is.” Sullivan is well-versed in the issues facing cannabis businesses today and knows many other officials are still in need of convincing.
In spite of heavy opposition from Attorney General Jeff Sessions, as well as House leadership, the cannabis industry saw a huge victory when protections for medical marijuana were included in this years’ fiscal budget. Now, with the help of our members who flew in to speak about their personal issues and experiences, we can all look forward to an even more progress and a better outlook for the U.S. cannabis industry.
VIDEO: Spring Policy Update From Aaron Smith
Watch this important policy update from NCIA’s Aaron Smith to learn more about the recent policy news and pro-cannabis legislation recently announced by several prominent members of Congress. Despite heavy opposition from Attorney General Jeff Sessions, the cannabis industry has stronger support than ever. Get the scoop in this video update.
VIDEO: How Section 280E of the IRS Tax Code Burdens the Cannabis Industry
As tax season officially concludes, many cannabis businesses are feeling the burden of Section 280E, which can have the effect of taxing direct-to-plant businesses at a rate up to 3.5 times higher than other businesses. This unfair provision in the federal tax code affects the entire industry’s growth potential.
Watch this video below to learn more about Section 280E. Find out more about the solution: The Small Business Tax Equity Act which would allow for the fair and equal treatment of cannabis businesses.
News Alert! Omnibus Update: Medical cannabis businesses protected through September 30
by Michelle Rutter, NCIA Government Relations Manager
After years of continuing resolutions and many rounds of negotiations, Congress reached a budget deal and passed a new omnibus spending package that funds the government through the remainder of FY2018, which ends on September 30.
This new spending bill does include the Leahy amendment (formerly the Rohrabacher-Farr amendment), which prohibits the Department of Justice from using tax dollars to enforce federal law against state-legal medical cannabis patients and businesses. Following the rescission of the Cole Memo in January by Attorney General Jeff Sessions, NCIA and our allies in Washington, DC pushed even harder to ensure that this language, which has been included in federal appropriations bills since 2014, was included in the spending package for the remainder of FY2018. In addition to language protecting state-legal medical cannabis programs, the omnibus bill unfortunately also included a provision that continues to block Washington, DC from taxing and regulating adult-use cannabis, despite the fact that voters approved the legalization measure nearly four years ago.
In normal budget cycles, Congress passes a fiscal year budget that goes from October 1 until September 30. But in these extraordinarily partisan times, Congress has been unable to agree on an annual budget and has patched together short-term funding bills called Continuing Resolutions (CR’s), which maintains current funding levels. Since just last September, there have been five such short-term CR’s. All of these CR’s have included the Rohrabacher-Farr (now Rohrabacher-Blumenauer in the House and the Leahy amendment in the Senate) amendment which protects medical cannabis businesses, programs, and patients in states where it’s legal. The last of these continuing resolutions is set to expire on Friday, March 23rd. The new omnibus spending bill will continue to fund the government through the remainder of FY2018, which ends on September 30, 2018.
The congressional appropriations process for FY2019 is already underway. While we have achieved a victory in extending medical cannabis protections, there’s much more work to be done. NCIA is lobbying not only to continue the medical cannabis protections, but to also expand protections to protect all legal cannabis businesses from federal interference, including adult-use businesses operating in the eight states with such programs. We are also working to pass a cannabis banking amendment, as well as an amendment that would protect veterans who choose to participate in state-legal cannabis programs. In addition to all of these appropriations amendments, NCIA is still working to pass legislation that would solve the cannabis banking problem, amend IRC Section 280E, and, ultimately, end cannabis prohibition.
VIDEO: Aaron Smith invites you to #NCIALobbyDays this May 21-23
Over the last several years the cannabis industry has experienced unparalleled economic growth. But, as business owners in the industry, we know first hand that this success also comes with persistent challenges. As long as we still experience the crippling effects of federal policies like 280E and unfair banking regulations, our success is merely potential.
This is why it is essential that cannabis business owners are also industry advocates. With the challenges posed by the current administration and the uncertain federal policies governing our industry, it is critical that we make our voices heard on Capitol Hill.
Join 300+ cannabis industry professionals at NCIA’s 8th Annual Cannabis Industry Lobby Days on May 21-23 in Washington, D.C. to advocate for our industry and forge a unified front with the industry’s most politically engaged leaders. Register before April 30 for a chance to win tickets and travel for two to #CannaBizSummit July 25-27.
Watch this video to hear more from NCIA’s Co-founder and Executive Director Aaron Smith.
For more information about NCIA’s 8th Annual Cannabis Industry Lobby Days,
by Michael Correia, NCIA Director of Government Relations
Following a brief shutdown in the wee hours of Friday morning, Congress came to yet another short-term budget deal to continue funding the federal government until March 23, 2018.
In normal budget cycles, Congress passes a fiscal year budget that goes from October 1 until September 30. But in these extraordinarily partisan times, Congress has been unable to agree on an annual budget and has patched together short-term funding bills called Continuing Resolutions (CR’s), which maintains current funding levels. Since just last September, there have been five such short-term CR’s. These short-term funding bills have not only hampered basic government functions, but have also affected military readiness and has even led to a federal government shutdown, which has lowered the public’s already dismal opinion of Congress.
After much negotiation between House and Senate leaders, it appears that the parameters of a two-year budget solution have been agreed to. The new budget deal is both bipartisan and bicameral (which has become a rarity in Washington, D.C.) and addresses many controversial issues that have hindered previous negotiations. This new budget deal increases funding levels for the military, provides billions in disaster relief, addresses infrastructure, education, child care, and attempts to combat the opioid epidemic.
But, in typical Congressional fashion, the details still have yet to be finalized. The Congressional Leaders have agreed to work with the leaders of the appropriations committees to ensure that all budget priorities are met.
So, what does this mean for your business and what does this mean for medical cannabis protections?
Since 2014, the federal budget has included language that protects medical cannabis operators from Department of Justice prosecution. These protections will be maintained in this short-term funding bill, so medical cannabis programs and businesses are protected until at least March 23, 2018. However, it is imperative that Congress maintains these protections (and even expand protections for adult-use) in the longer budget that is being negotiated between now and March 23. NCIA will continue our Congressional lobbying efforts and work with our partners and other advocates to continue these protections.
Our team in Washington, D.C., works everyday to make the industry’s voice heard, but nothing matches the power of a personal story personally told. Remember to join us for NCIA’s 8th Annual Cannabis Industry Lobby Days this year on May 21-23 in Washington, D.C.
VIDEO: Save The Date For NCIA’s 8th Annual Lobby Days!
JUST ANNOUNCED! On May 21-23, 2018, NCIA Members will descend on Capitol Hill in Washington, D.C. for the 8th year in a row.
WHAT IS LOBBY DAYS? Every year, the National Cannabis Industry Association hosts the annual Cannabis Industry Lobby Days in Washington, D.C. This year, Lobby Days will bring over 300 cannabis industry professionals together to make their voices heard in the halls of Congress.
WHY ARE LOBBY DAYS IMPORTANT? With victories in eight states across the country during the 2016 presidential election, as well as the challenges posed by the new administration, fixing federal policies is more critical than ever. This year, we will continue to emphasize the importance of protecting legal cannabis businesses and patients, reforming section 280E of the federal tax code, and solutions to the banking crisis, all of which are critical to respecting state marijuana laws. Our team in Washington, D.C., works everyday to make the industry’s voice heard, but nothing matches the power of a personal story personally told.
Watch this short video to see highlights from last year’s 7th Annual Cannabis Industry Lobby Days, and to learn more about why you should plan to join us this year as we create momentum for cannabis policy reform in the halls of Congress.
VIDEO: Protect Medical Cannabis – Support the Leahy Amendment
Watch this video update with NCIA’s Co-founder and Executive Director, Aaron Smith, to learn more about what’s happening in Congress in Federal Appropriations. We’ve made it easy for you to take action to help ensure state-legal medical cannabis businesses and patients continue to be protected from Department of Justice enforcement. Log on to our advocacy platform before February 8th to contact your Senators to urge them to support the Leahy Amendment.
***UPDATE: A short-term budget deal was struck on February 9th, extending funding of the federal government through March 23rd.
Department of Justice Rescinds Cole Memo: Here’s what to expect
This morning, Attorney General Jeff Sessions announced the Department of Justice’s move to rescind the “Cole Memo” and two additional memos related to marijuana enforcement policy. These memos, issued in 2013 and 2014, have helped to clarify the Department’s response to state-legal cannabis activity.
This is disturbing news for the cannabis industry and the majority of U.S. voters who support legal cannabis. However, the rescinding of this memo does not necessarily mean that any major change in enforcement policy is on the horizon. This has been, and still will be, a matter of prosecutorial discretion.
NCIA’s team in D.C. is working tirelessly to ensure that the administration and the Department of Justice uphold President Trump’s campaign promise to not interfere with state-legal cannabis programs by making sure they understand that regulated cannabis is successfully undercutting the criminal market, while funding important state programs.
At this time, it’s critical the cannabis industry unify to amplify that message so it’s crystal clear. It’s also imperative that Congress take action to align federal legislation with the majority of states, which now allow some form of legal cannabis.
One pressing issue before Congress is Senator Leahy’s appropriations amendment which would prevent the DOJ from using resources to undermine state medical cannabis laws. (The Senate’s version of the Rohrabacher-Blumenauer Amendment in the House.)
Please call your U.S. Senators today and urge them to include the Leahy Amendment in the upcoming Omnibus Appropriations Bill.
Talking points to help guide your call are included on our online action page.
To learn more about NCIA’s advocacy efforts or the NCIA-PAC, please contact NCIA Government Relations Manager, Michelle Rutter by emailing Michelle@thecannabisindustry.org.
And, of course, if your business is not yet a member of NCIA, please join today so that we have the resources we need to prevent any rollback of the progress we’ve made in recent years.
The End of Prohibition in California: An Interview with Berkeley Patients Group
At the conclusion of the first week of adult-use cannabis sales in California, we spoke to Sabrina Fendrick, Director of Government Affairs of Berkeley Patients Group, to get a picture of their recent launch into the adult-use cannabis market. Berkeley Patients Group has been serving patients in the Greater East Bay Area of Northern California since 1999 and is a founding member of NCIA.
Sabrina, what was the process like for Berkeley Patients Group to apply for an adult-use cannabis license in California?
What we got was actually a temporary license, so the process for that is not as onerous or complicated as the annual process. We submitted our local authorization, site plan, and landlord approval. We did this three times, one for adult-use sales, one for medical sales, and one for distribution.
We had to work very closely with the city of Berkeley to make sure we had all of our ducks in a row, which was a little bit complicated because Berkeley had a ban on adult-use commercial cannabis activity. We engaged with the mayor and city council to get a “carve out” for us since we are a Berkeley institution as the nation’s oldest medical cannabis dispensary. We were intensely involved in conversations with regulators like the Berkeley Cannabis Inspector Mark Sproat throughout the whole process. We had it a little easy actually since we’ve been around for many years, as we were established in 1999.
When did you learn you had been awarded the license and how did your team react?
We learned on December 15th that we had received all of our licenses at about 4pm on a Friday, and the whole team was elated. There was perhaps even a little anxiety in wanting to make sure we had everything ready to roll out on January 1 to start offering cannabis to adults in California.
The first few days have been generally pretty smooth. There are a few questions surrounding process and operations to figure out as we go, but the whole roll out process has been smooth. Not a whole lot has changed except we’re getting longer lines, and we’re making sure that our systems are in place to be fully compliant with state law and all of the staff training required to go with that.
What is your reaction to the recent news of AG Jeff Sessions announcing on January 4th to rescind the Cole Memo?
We fully intend to keep serving the Berkeley community and the surrounding area as a state-licensed locally-operated compliant business. Further action on behalf of the Attorney General and the Department of Justice remains to be seen, but we do have support from local politicians and regulators.
We’re confident that public opinion and federal protections will continue to support the will of the voters and states’ rights. The DOJ should be using law enforcement resources to go after real criminals committing real crimes, and not enforcing an outdated, archaic policy that has almost no support from the general public.
As is traditional on the first day of adult-use sales, did Berkeley Patients Group make its first sale of cannabis to anyone noteworthy?
Yes, longtime California cannabis activists Mikki Norris and Chris Conrad were sold the first cannabis purchase in our dispensary. They were both spokespeople for Proposition 64 all the way back to Proposition 215, so it was an honor to make the first sale to people who were actively involved in reforming these laws in California.
Partner Blog: Ohio’s Medical Marijuana Program Begins Taking Shape
by Thomas Rosenberger, Executive Director of NCIAO
More than a year after Ohio legalized medical marijuana, the first licenses have finally been awarded. The Ohio Department of Commerce ended months of speculation by announcing 12 level II cultivator license winners on November 3rd, and 12 level I cultivator license winners on November 30th.
These 24 winners are now responsible for growing the supply of medical marijuana Ohio’s patients will use, a population estimated to be in the hundreds of thousands. The medical marijuana market in Ohio is expected to be worth $300-400 million once it matures, making the limited number of licenses available immensely valuable.
While we now know who the 24 cultivators will be, Ohio’s medical marijuana program is still nine months away from its September 8th, 2018 deadline to be operational. Processing, dispensary and testing licenses have all yet to be awarded, and already controversy and lawsuits are threatening to derail and delay the program.
It’s a scenario we’ve seen repeatedly in other states such as Maryland, and a scenario for which the industry must work together to prevent in Ohio. The National Cannabis Industry Association of Ohio was formed in July to foster collaboration between members, promote best practices and to serve as the voice of the industry in Ohio.
We’ve spent the past 5 months advocating for the industry and working to provide feedback to state regulators on various aspects of the program. Moving forward, our priority will be on ensuring Ohio’s program meets its statutory deadlines and licensed cannabis businesses are able to begin serving Ohio’s patients by September 8th, 2018.
Now more than ever, it’s crucial the industry come together to ensure Ohio’s medical cannabis program is not delayed. Ohio’s patients have waited long enough for relief, and the industry has a responsibility to ensure they wait no longer.
NCIAO is the Ohio affiliate of the National Cannabis Industry Association, the nations only industry-led organization engaging in legislative efforts to expand and further legitimize the legal cannabis market in the U.S.
Policy Council: The Little-Known – And Critical – Exception To Federal Paraphernalia Laws
This paper was generated by NCIA’s Policy Council. Steve Fox, Policy Council Director, says “the mission of NCIA’s Policy Council is to inform lawmakers and other stakeholders about policy-related matter affecting the cannabis industry. This short paper is an excellent example of that type of work. It is important that we raise awareness about the critical exception to federal paraphernalia laws, under which state-authorized activity is exempt from the provisions of the law. We can debate how that exemption should be interpreted, but we must acknowledge that it exists. This paper furthers that goal.”
Policy Council: IRC Section 280E – An Unjust Burden on State-Legal Cannabis Businesses
NCIA’s Policy Council, comprised of industry leaders selected by NCIA’s Board of Directors, play a critical role in the development of cannabis policy at the federal level. The Policy Council recently produced a white paper titled “IRC Section 280E: An Unjust Burden on State-Legal Cannabis Businesses” which is now available in an easy-to-read design with the intention of utilizing this in conversations with policymakers, the media, and the industry.
“Fixing Section 280E of the Internal Revenue Code has been a policy priority for NCIA since its founding in 2010,” said Steve Fox, co-founder of NCIA and director of the Policy Council. “It is therefore appropriate that the fist Policy Council paper is focused on this issue. The information contained in this paper will be useful in lobbying efforts as Congress continues to debate tax reform. In particular, the projections contained in the paper, showing that reforming 280E could actually result in a net increase in tax revenue for the federal government, should be especially eye-opening.”
NCIA visited the Palm Springs & Desert Hot Springs communities in September 2017 to meet and greet with current and future members. At this Member Drive networking event, cannabis industry professionals connect at the local level and reaffirm the importance of staying plugged in to a larger, national voice of thousands.
Video: Cannabis Amendments Blocked in Appropriations – now what?
In a late-night vote on Thursday September 6th, the House Rules Committee blocked a full house vote on all cannabis-related appropriations amendments.
Fortunately, Congress passed a Continuing Budget Resolution which does keep the Rohrabacher medical marijuana protections in the budget until December 8th of this year, and more importantly for the long term, those protections currently included in the Senate’s Appropriations bill for the next fiscal year so Congress still has a chance to protect patients and state-legal cannabis businesses in conference committee.
What can you do? Watch the video to hear more from NCIA’s executive director Aaron Smith.
And log on to www.thecannabisindustry.org/SupportLeahy to contact your Senators!
The Future of Medical Cannabis Reform – Now What?
by Michelle Rutter, NCIA Government Relations Manager
Late in the evening of September 6th, 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. The Rules Committee is used by House leadership to maintain control over the House floor, and is heavily stacked in favor of the majority party (by a 2:1 ratio).
Unfortunately, the committee decided not to allow the Rohrabacher-Blumenauer amendment (formerly the Rohrabacher-Farr amendment) to move forward for a vote on the Floor. Despite the fact that 46 states have legalized some form of cannabis, 90% of the public supports medical marijuana, and over 70% think the federal government should not interfere with state marijuana reforms, the Rules Committee singlehandedly decided to strip out the language protecting states’ medical marijuana laws that have been in law since 2014.
Although this came as no surprise, it is still disappointing. So, what’s next going forward? There are a couple of possible scenarios.
Scenario 1: In July, the Senate Appropriations Committee passed an amendment offered by Vice Chairman Patrick Leahy (D-VT) by a voice vote. The Leahy amendment is identical to the Rohrabacher-Blumenauer amendment and would protect medical cannabis businesses and patients for another year. If this legislation passes the Senate, the opportunity still exists for Congress to reconcile the differences and agree to maintain the current protections in medical cannabis states.
Scenario 2: There are rumors circulating that Congress will pass a funding bill for Hurricane Harvey relief and that this bill would include a debt ceiling increase and continue funding the federal government through mid-December. If this happens, the Rohrabacher-Farr amendment will continue to protect medical cannabis patients and businesses until a new appropriations bill is passed.
Scenario 3: Neither the House or the Senate agree to maintaining this provision, and Congressional protections for states’ medical cannabis laws disappear in the short term. Although this is the worst scenario of the three listed here, the opportunity still exists for Congress to re-insert this provision during next year’s budget negotiations.
NCIA will continue to advocate and communicate with Members of Congress on the behalf of the cannabis industry. While the House Rules Committee has made a disappointing decision, there is still hope that the Rohrabacher-Blumenauer/Leahy amendments will be included in federal law for yet another year. As we continue to represent our member-businesses, we will be vigilant in our efforts to bring about the best possible positive outcome in the current political climate.
Top 5 Amendments To Watch For In Congressional Committee Next Week
by Michelle Rutter, NCIA Government Relations Manager
Every year, Congress must pass appropriations legislation to fund the government for the upcoming fiscal year. This annual budget bill, which is currently set to expire on September 30th, has been one of the only avenues by which pro-cannabis reform language can be inserted into federal law– even if only for a year at a time.
But, like most things in Washington, D.C., the appropriations process is lengthy, complicated, and chock full of procedure.
Early next week, the House Rules Committee will hold a hearing to discuss amendments to the upcoming appropriations bill that will fund the government for FY2018. The Rules Committee is used by leadership to maintain control over the House floor, and is heavily stacked in favor of the majority party (by a 2:1 ratio). Despite that, over a dozen cannabis related amendments have been filed and submitted by various members of Congress, but it is up to the Rules Committee to determine which provisions will be ruled “in order.” Let’s take a look at a few of the amendments that, if passed, could significantly affect the cannabis industry:
Rohrabacher-Blumenauer Amendment: This provision, formerly known as the Rohrabacher-Farr amendment, has been included in the federal budget since 2014. The amendment bars the Department of Justice from interfering with states’ medical cannabis laws and businesses. Those protections will expire on September 30th if this amendment is not renewed. The amendment has 12 cosponsors: seven Republicans and five Democrats.
McClintock-Polis Amendment: First introduced in 2015, this amendment would ban the Department of Justice from interfering with states’ adult-use cannabis laws and businesses. When voted on in 2015 on the House floor, the amendment narrowly failed.
Heck Amendment (1): This amendment would protect financial institutions that choose to service the cannabis industry from interference from the federal government. The provision protects banks in adult-use states, medical cannabis states, and CBD-only states.
Heck Amendment (2): The second cannabis related amendment introduced by Congressman Heck would prohibit any changes to the guidance issued by the Financial Crimes Enforcement Network titled “BSA Expectations Regarding Marijuana-Related Businesses.”
Heck Amendment (3): Similar to the second Heck amendment, this provision would prohibit the Department of Justice from revoking the guidance issued by the Financial Crimes Enforcement Network titled “BSA Expectations Regarding Marijuana-Related Businesses.”
It is important to note that in recent years, House Republicans have essentially shut down the appropriations process by not allowing any controversial amendments (including cannabis) to be ruled “in order”. Just a few months ago, the Rules Committee blocked a measure that would have allowed Veterans Affairs physicians to talk to their patients about medical cannabis in states where it’s legal. Should this happen next week, NCIA will be working closely with our allies and Members of Congress to ensure that the Senate’s version of the budget bill, which does include the Rohrabacher-Blumenauer amendment, is passed into law.
Navigating Congress and all of its procedural quirks can be stressful and difficult, but that’s what NCIA is for. Stay tuned for updates on appropriations throughout September as we continue to watch this process unfold.
By The Numbers: NCIA Members Make It Happen In The Halls Of Congress
by Michelle Rutter, NCIA Government Relations Manager
While 2017 has had some political unknowns, one thing is for sure: cannabis legislation in Congress has more support than ever — and NCIA members have helped make that happen.
In mid-May, NCIA held its 7th Annual Cannabis Industry Lobby Days in Washington, D.C., where 250 industry professionals came together on Capitol Hill to attend more than 300 scheduled meetings. Since then, there has been a substantial increase in the number of cosponsors on cannabis-related bills compared to the last congressional session.
Last session, during the 114th Congress, Rep. Ed Perlmutter (D-CO) introduced the Marijuana Businesses Access to Banking Act, which would have created a safe harbor for financial institutions to serve marijuana-related businesses. At the end of the two-year session, the bill had 39 cosponsors.
Earlier this year, during the 115th Congress, Rep. Perlmutter introduced his new bill, the Secure and Fair Enforcement (SAFE) Banking Act (H.R. 2215). That bill currently has 47 cosponsors with nearly a year and a half left in the session to gain more support. Since NCIA’s Lobby Days in May, the SAFE Banking Act has added 18new cosponsors.
There has also been a substantial increase in the number of cosponsors on the House of Representatives bill that addresses the 280E tax problem. Last session, Rep. Earl Blumenauer (D-OR) introduced the Small Business Tax Equity Act, which ended the session with 18 cosponsors.
This year, NCIA was successful in helping secure Rep. Carlos Curbelo’s (R-FL) leadership on the Small Business Tax Equity Act of 2017 (H.R. 1810), which has been instrumental in gaining the 25 cosponsors the bill currently has. That legislation has gained 13new cosponsors since NCIA’s annual Lobby Days.
In addition to an increase in cosponsorship of cannabis-related bills, there’s also been an uptick in support for appropriations amendments at the committee level. At the end of July, the Senate Appropriations Committee adopted an amendment that would allow the Department of Veterans Affairs (V.A.) to recommend medical cannabis in states. That amendment passed by a vote of 24-7 — the most votes this measure has ever received in the Senate.
As the appropriations process continues through the summer, it’s likely that more cannabis-related amendments will be brought up and voted on, including votes dealing with protections for medical marijuana businesses and banking. NCIA is confident that if congressional leadership allows these measures to be voted upon, they will receive unprecedented levels of support.
The industry’s united voice makes a difference on Capitol Hill, and it can be seen in the numbers. To learn more about NCIA’s annual Cannabis Industry Lobby Days, you can click here.
Video: The Cannabis Industry Speaks Out in D.C.
Last month, more than 250 cannabis industry professionals came to D.C. for NCIA’s 7th Annual Cannabis Industry Lobby Days. In this month’s video newsletter, we capture highlights from this energizing two days of advocacy, education, and community. Watch the video to re-live the experience, or live vicariously through your fellow NCIA members. And plan to join us next year to add your voice!
Were you there? How did your meetings on Capitol Hill go? What was your favorite part of the experience? Please send a brief testimonial of your experiences to NCIA Communications Manager Bethany Moore by emailing bethany@thecannabisindustry.org.
Thank you to the co-chairs of NCIA’s Policy Council for their premier sponsorship of our 2017 Cannabis Industry Lobby Days:
The Cannabis Industry Takes D.C. – Highlights from NCIA’s 7th Annual Lobby Days
by Michelle Rutter, NCIA Government Relations Manager
With the uncertainty that the new administration has brought the cannabis industry, it’s become more important now than ever before to be proactive in government and in our nation’s capital. Last month, NCIA did just that by hosting our 7th Annual Cannabis Industry Lobby Days. 250 cannabis industry professionals joined us in Washington, D.C., to meet with more than 300 Capitol Hill offices and tell their stories.
Lobby Days kicked off with a breakfast and training session for our attendees, where they learned lobbying basics and were briefed on our talking points. There, attendees met with their groups and gathered their materials to drop off in Capitol Hill offices for staff.
Once the training session was complete, we led our attendees down to our group photo location. Every year, NCIA has nearly doubled the number of participants at Lobby Days.
Following our (very large!) group photo, meetings on Capitol Hill commenced. We scheduled more than 300 meetings with congressional opponents, advocates, members from relevant committees, and others. In addition to the meetings we had scheduled, we also dropped in on various offices and left information about our issues with staff for them to review. In all, we made contact with nearly all of the 535 congressional offices on the Hill!
Simultaneously during our Hill meetings, NCIA hosted a private luncheon for Rep. Carlos Curbelo (R-FL), the new sponsor of H.R. 1810: The Small Business Tax Equity Act, which addresses the unfair burden of 280E faced by the cannabis industry. Over the years, NCIA has consistently worked to increase our Capitol Hill advocates and are thrilled that Congressman Curbelo will be leading the charge on 280E reform.
After a busy day of meetings on Capitol Hill, NCIA hosted a fundraiser for the NCIA-PAC, the Political Action Committee (PAC) for cannabis industry professionals. We had six members of Congress show their support by joining us: Reps. Earl Blumenauer (D-OR), Salud Carbajal (D-CA), Carlos Curbelo (R-FL), Ruben Gallego (D-AZ), Jared Polis (D-CO), and Dina Titus (D-NV).
We were thrilled to raise $60,000 for the NCIA-PAC, which supports federal candidates who are open to the challenges and concerns our industry faces, support cannabis reform at the federal level, and introduce or support pro-cannabis legislation.
Our second day got off to a great start with a press conference held in front of the United States Capitol Building. NCIA executive director Aaron Smith was joined by seven members of Congress (Reps. Blumenauer, Steve Cohen [D-TN], Curbelo, Diana DeGette [D-CO], Eleanor Holmes-Norton [D-DC], Polis [D-CO], and Titus [D-NV]) to address the need for reform federal marijuana laws.
Overall, it was an incredibly successful Lobby Days, and our biggest yet! We’ve already seen co-sponsorship on cannabis-related bills increase, and it is undoubtedly related to the meetings and personal stories NCIA members shared. We look forward to seeing you all in Washington, D.C., for our 8th Annual Cannabis Industry Lobby Days in 2018!
Thank you to the co-chairs of NCIA’s Policy Council for their premier sponsorship of our 2017 Cannabis Industry Lobby Days:
VIDEO: Head to D.C. with us on the “Path to Marijuana Reform”
With NCIA’s 7th Annual Cannabis Industry Lobby Days less than a month away, Deputy Director Taylor West reports on some exciting news out of Washington, D.C., earlier this month. Several members of Congress introduced a package of legislation to support the growing cannabis industry, including a fix to the crippling taxation of 280E. Find out more about the “Path to Marijuana Reform” and get excited for your chance to speak directly with the lawmakers in the House and Senate about our industry’s future. Register for Lobby Days today and join us in D.C., May 16-17.
A Closer Look at the “Flurry” of Cannabis Legislation in Congress
by Michael Correia, NCIA Director of Government Relations
Last week, we saw Congress introduce a flurry of marijuana related legislation, with many aspects directly affecting the cannabis industry.
Taking the lead on bill introductions were cannabis champions Rep. Earl Blumenauer and Sen. Ron Wyden of Oregon, who introduced a series of bi-cameral, bi-partisan bills that they referred to collectively as the ‘Path to Marijuana Reform’. In addition, the cannabis industry gained a new Republican champion – Rep. Carlos Curbelo of Florida. Rep. Curbelo is a member of the Ways and Means committee and is an original co-sponsor of the new legislation that aims to fix 280E. Their goal was to pave the way for regulation of cannabis at the federal level, and provide certainty in the 50 states. In addition, Colorado Congressman Jared Polis introduced his own stand-alone regulation bill.
This legislation would repeal the tax penalty that singles out state-legal marijuana businesses and bars them from claiming deductions and tax credits. Because marijuana is classified as a Schedule I drug, cannabis dispensaries operating legally under state law are prohibited from deducting normal business expenses from their net income on federal tax returns. In fact, many dispensaries have been forced to pay between 50 and 70 percent of their net income to the federal government. The lead sponsor is Republican Congressman Carlos Curbelo from Florida, who sits on the House Ways and Means Committee, the Committee of jurisdiction on tax bills. NCIA has been lobbying on this bill for years and is happy to have the Congressman help us navigate this bill through Congress.
H.R. 1824/S. 780, the Responsibly Addressing the Marijuana Policy Gap Act of 2017:
Congressional advocates say this bill reduces the conflict between state and federal law, without legalizing cannabis at the federal level. An all-encompassing bill, this legislation contains numerous sections addressing cannabis reform. Section 101 amends the Controlled Substances Act to exempt any person acting in compliance with state laws law from criminal penalties. Sections 201-207 address the 280E provision; makes exemptions for marijuana advertisements; allows access to banking services; allows access to bankruptcy relief; and allows tribal entities to pursue cannabis reform with fear of federal penalties. Sections 301-306 allow expungement of criminal records for certain marijuana-related offenses; limits marijuana drug testing for federal employment; excludes marijuana misdemeanors offenses from federal financial aid; limits federal civil forfeiture of state compliant marijuana businesses; limits immigrant deportation for marijuana related activity; and excludes marijuana related activity for federally assisted housing. Sections 401-403 lowers barriers to federal medical research of marijuana; authorizes Veterans Affairs doctors to allow recommendations for medical marijuana; and allows Indian Health Services to allow recommendations for medical marijuana.
This legislation would effectively legalize marijuana at the federal level by de-scheduling, taxing, and regulating marijuana. If passed, the Attorney General would have 60 days to remove marijuana from the Controlled Substances Act, but would still prohibit the transport of marijuana into any state in which it was still illegal under state law. Because of marijuana’s removal from the Controlled Substances Act, 280E would no longer apply to state-legal cannabis operators. In addition, this legislation would allow for a federal excise tax on marijuana. An excise tax of 10 percent would be in effect for the first two years after enactment. The rate would increase to 15 percent in the third year, 20 percent in the fourth year, and 25 percent thereafter. In addition, a $1000 per year occupational tax would be levied on each marijuana production facility.
H.R. 1841, the Regulate Marijuana Like Alcohol Act:
This bill, introduced by Colorado Congressman Jared Polis, would eliminate the federal ban on marijuana and establish a regulatory system that enables that choose to allow the use of marijuana without interference from the federal government. 60 days after enactment, marijuana would be removed from the Controlled Substances Act, but does not apply to interstate commerce. It would remove oversight from the DEA and move it to the Bureau of Alcohol, Tobacco, Firearms and Explosives; and would regulate marijuana like alcohol. It would establish a permitting system stemming from an annual licensing fee on marijuana producers. Finally, it would establish standards for advertising marijuana and its products.
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With uncertainty still remaining related to potential Department of Justice enforcement, more and more advocates in Congress are coming out in support of our efforts. NCIA will continue pushing for reforms at the federal level and our friends on Capitol Hill won’t stop until your cannabis businesses are able to operate freely, like all other businesses.
NCIA member looking to help advance our issues on Capitol Hill should register for our 7th Annual Cannabis Industry Lobby Days coming up May 16 and 17 in Washington, D.C.
VIDEO: The Importance of Making Your Voice Heard in D.C.
NCIA Deputy Director Taylor West delivers this month’s video newsletter, encouraging you to get involved and make your voice heard to the new administration and new Congress. As NCIA prepares for our 7th Annual Cannabis Industry Lobby Days, there’s never been a more important time to speak up for your business and the industry we’re building together by engaging with our advocacy work on Capitol Hill in Washington, D.C.
Thank you to the co-chairs of NCIA’s Policy Council for their premier sponsorship of our 2017 Cannabis Industry Lobby Days:
Are you interested in sponsorship opportunities for your company at NCIA’s most important policy event of the year? Contact us at sponsorship@thecannabisindustry.org to find out more!
Video Newsletter: The Challenges Ahead
In our final video newsletter of 2016, NCIA’s Aaron Smith and Taylor West give an overview of our victories in eight states across the country, as well as the challenges ahead of us as we see a new administration come in to the White House. Hear more about the importance of NCIA’s work in the halls of Congress as we go forward into 2017 and beyond.
DEA Rescheduling Announcement: What It Means, And What You Can Do
“DEA’s decision flies in the face of objective science and overwhelming public opinion.”
“The reality is that half of U.S. states have already passed effective laws allowing patients legal access to medical cannabis, and it is changing lives,”
“Continuing marijuana prohibition forces critically ill people to suffer needlessly, leaves life-changing treatments undeveloped, and keeps patients and providers in limbo between state and federal laws.
“We appreciate the positive step – however small – of opening up a few additional avenues for medical marijuana research. But patients deserve more, and Congress should help them by removing marijuana from the Controlled Substance Act, allowing state programs and medical research to move forward without interference.”
NOW WHAT?
This DEA decision presents an opportunity to elevate the conversations we are having with both the public and Members of Congress. It’s important that we continue to tell our stories about the benefits of state-regulated marijuana industries and the need to end federal marijuana prohibition.
Now, more than ever, is a chance to raise our voices in unison to make our issues undeniably heard.
We encourage you to get involved with Congress at home by attending a town hall meeting, inviting Members of Congress or their staff on a tour of your business, and scheduling meetings with your Member’s district office.
For advice, help, or materials to assist you, please contact NCIA’s Washington, D.C. office by emailing michelle@thecannabisindustry.org.
If your business is not yet a part of the movement, please join NCIA today.
Top 3 Ways to Get Involved with Congress at Home During August Recess
by Michelle Rutter, Government Relations Coordinator
Each year, Congress recesses for the month of August. Traditionally, this time has been used for Members to return home to their districts and meet with constituents and, of course, campaign for re-election. Though this makes August a quiet month in D.C., it’s a great time for you and your colleagues to get involved with the political process, engage with Members of Congress, and educate them on cannabis policy.
Here are the top 3 ways you can get involved at home during August recess:
Attend (or plan) a town hall
Town hall meetings are an excellent way for businesses, local leaders, and representatives of the cannabis movement to communicate with elected officials about issues affecting your community. Make sure you call or check your Representative and Senators’ websites to see if any town halls have been scheduled during August recess. If they aren’t planning on holding one, consider planning a town hall yourself and inviting various elected officials to talk about cannabis policy in your community and on the federal level.
Invite Members of Congress or their office staff on a tour of your business
Even though cannabis is arguably more mainstream than it’s ever been, many elected officials still have not had the chance to experience what the responsible and legal cannabis industry looks like firsthand. Whether you’re involved with growing, processing, or dispensing cannabis, or operate an ancillary business, a tour with a Member of Congress and/or their staff can be invaluable to them. Reach out to your elected officials’ district office and ask if they would be interested in a tour- their answer may surprise you!
Schedule a meeting with your Member’s district office
August recess means Members of Congress are home for an entire month and is a great opportunity to meet with them and their staff! There are very few things more compelling than a personal story when talking to elected officials, so whether your experience has been with the benefits of medical cannabis, the unfair tax burden of 280E, or the struggle for traditional banking, be sure to schedule an appointment with your district office to tell that story. Click here to find out who your Representative is and visit their website to see where their district office is located.
We all have a responsibility to educate and engage with elected officials in order to change the perception surrounding cannabis. August recess is the perfect opportunity to get involved with federally elected officials without having to leave home! If you need advice, help, or materials to assist you, remember to contact NCIA’s Washington, D.C. office by emailing michelle@thecannabisindustry.org.
2016 Mid-Year Federal Policy Recap
Michelle Rutter, NCIA
by Michelle Rutter, NCIA Government Relations Coordinator
With 2016 being an election year, things seem to have been moving at an even slower than usual pace here in Washington, D.C. All House and some Senate members are in campaign mode, while others in Congress weigh in on the presidential candidates and give their endorsements (or voice their opposition). Even so, there has been promising movement on the cannabis issue in D.C. Let’s take a look at 2016 so far:
January
After the usual end-of-year budget negotiations and the holidays, 2016 was off to a quick start. At the beginning of January, a federal judge ruled to dismiss a lawsuit filed by the Fourth Corner Credit Union against the Federal Reserve in hopes of providing banking services to the legal cannabis industry. In his ruling, Judge R. Brooke Jackson said Congress must provide the answer, stating, “I regard the [cannabis banking] situation as untenable and hope that it will soon be addressed and resolved by Congress.”
Putting even more pressure on Congress to act, the White House also weighed in on marijuana in January. Press Secretary Josh Earnest stated that any action on re-scheduling or de-scheduling cannabis would need to come from the legislative branch.
February
In February, the U.S. House of Representatives Committee on Rules held a hearing on the Financial Institution Customer Protection Act of 2015 (H.R. 766). This bill prohibits federal agencies – including banking agencies – from terminating certain bank accounts simply due to the nature of their business. Longtime cannabis champion Rep. Ed Perlmutter (D-CO) used this hearing as an opportunity to offer an amendment to the legislation. His amendment would have allowed banks and credit unions to offer financial services and maintain relationships with state-legal, licensed cannabis businesses, without fear of federal prosecution. The committee ultimately voted Rep. Perlmutter’s amendment down: the 3-9 vote broke along party lines, with all Democrats voting in favor and all Republicans voting in opposition.
Presumptive Democratic nominee Hillary Clinton also gave her opinion on cannabis in February, stating, “Right now, a number of states are experimenting with marijuana laws. Seventeen states have decriminalized the possession of small amounts of marijuana; four states allow recreational use; and about half of all states allow medical use. These statewide experiments can help us point the way to national policy, so I’ll continue the Obama Administration’s enforcement guidelines that allow states to experiment.”
March
In March, federal banking agencies began having discussions with the Financial Crimes Enforcement Network (FinCEN) about guidance on how financial institutions can serve marijuana-related businesses. Many banks are concerned that FinCEN’s previous guidance on submitting marijuana-related Suspicious Activity Reports (SARs) is not sufficient to overcome the legal risks of serving marijuana businesses.
Reinforcing the urgency of the cannabis banking issue, Sen. Jeff Merkley (D-OR) and three other senators sent a letter to the Federal Reserve, Treasury Department, Office of the Comptroller of the Currency, Federal Deposit Insurance Corporation, Financial Crimes Enforcement Network (FinCEN) and National Credit Union Administration, requesting more guidance on what banks can do with marijuana-related businesses in states where cannabis is legal.
In addition, Congressmen Ed Perlmutter (D-CO) and Dana Rohrabacher (R-CA) circulated letters in Congress asking Appropriations Chairmen to include pro-cannabis amendments in future appropriations bills.
After considering the lawsuit filed by Nebraska and Oklahoma against Colorado’s legal cannabis industry, the Supreme Court declined to take up the case in March. Nebraska and Oklahoma claimed there was “a direct and significant detrimental impact — namely the diversion of limited manpower and resources to arrest and process suspected and convicted felons involved in the increased illegal marijuana trafficking or transportation.” The Obama administration had urged the Court not to take up the case late last year.
April
In April, longtime cannabis opponents Sens. Chuck Grassley (R-IA) and Dianne Feinstein (D-CA) (co-chairs of the Caucus on International Narcotics Control) held a drug caucus hearing entitled, “Is the Department of Justice Adequately Protecting the Public from the Impact of State Recreational Marijuana Legalization?” The hearing was prompted after a recent report that the senators requested from the Government Accountability Office (GAO) concluded that the Obama Administration has no written, documented plan to discourage issues like diversion, sale to minors, and adverse public health effects from states that have chosen to legalize cannabis. The witnesses were completely biased: all four have been openly against the legalization of cannabis. NCIA and other cannabis reform groups used this opportunity to call on the Senators to hold a hearing on the CARERS Act (S. 683), which they have not done – even though the bill has more than 15 bipartisan co-sponsors in the Senate.
Also in April, the Senate Appropriations Committee approved an amendment to the Military Construction and Veterans Affairs Appropriations bill that would ease access to medical cannabis for veterans suffering from post-traumatic stress disorder, serious injuries, and other debilitating conditions. The amendment was offered by Sens. Steve Daines (R-MT) and Jeff Merkley (D-OR) and would prohibit federal funds from being used to enforce a ban on V.A. doctors from recommending a patient medical cannabis in a state where it is legal.
May
In May, the U.S. State Department responded to a letter from Sen. Kirsten Gillibrand (D-NY) and said that the DEA’s monopoly on cannabis for research in the U.S. is wrong. The released document stated that a country issuing more than one cultivation license “would not be a sufficient basis to conclude that the party was acting in contravention” with international drug treaties.
There’s no doubt that cannabis was on Congress’s mind because NCIA held its sixth annual Cannabis Industry Lobby Days in May! More than 150 cannabis professionals convened in Washington, D.C., for two days of advocacy that included more than 200 scheduled meetings and approximately 175 more drop-in meetings, as well as a PAC reception that had almost a dozen members of Congress in attendance.
Just days after NCIA’s Lobby Days, the House of Representatives and the Senate voted in favor of an amendment that would allow Veterans Administration doctors to recommend medical marijuana for their patients in states where medical marijuana is legal.
June
Though we’re barely halfway through June, it could be a big month for cannabis policy in D.C. It’s appropriations season here in the nation’s capital, which means that there could potentially be multiple opportunities to include pro-cannabis language in the budget. Though it is still unclear if Congress will have ‘regular order’ during the appropriations process, NCIA will continue to lobby on your behalf and keep you updated as the appropriations process unfolds.
A new poll from Quinnipiac was released in June and concluded that slightly more than half of Americans (54 percent) believe the use of marijuana should be made legal across the country, while 41 percent said it should not. When asked whether people should be allowed to use medically prescribed marijuana, 89 percent of respondents overall said they would be in favor, while just 9 percent opposed.
Congress only has a handful of days left in session before they return home for the majority of the summer to campaign, attend their parties’ conventions, and enjoy the annual August recess, so be sure to keep an eye out for news from NCIA about the developing appropriations process and other news from your government affairs team in Washington, D.C.
Guest Post: Waiver Program Could Clear Path for State Legalization
(AS WITH ALL GUEST POSTS ON NCIA’S WEBSITE, THIS POST SOLELY REPRESENTS THE VIEWS AND OPINIONS OF ITS AUTHOR AND DOES NOT REPRESENT AN NCIA ENDORSEMENT OR OFFICIAL POSITION. ~ EDS.)
Congress is considering a potential waiver program where states will be given an exemption to federal prohibition of cannabis.
On April 17 and 18, NYU hosted the Cannabis Science & Policy Summit where a panel discussion took place titled “Federalism & Cannabis Policy: What Can & Should Washington Do?” The panel consisted of experts in law and drug policy, including Congressman Earl Blumenauer (D-OR) and Sarah Trumble, senior policy counsel at Third Way, a public policy think tank based in Washington, D.C. The panel discussion delved into the restrictions of the DEA’s power to reschedule cannabis by Congress and appropriate policy alternatives to clearing the path for state-by-state cannabis legalization.
According to Cody Stiffler, vice president of Government Affairs at BioTrackTHC, who was also present at the panel discussion, Congress has placed so many restrictions on the ability and powers of the DEA, that they can only reschedule cannabis to a Schedule II status. He believes there is almost no possible way that the DEA can de-schedule cannabis. The panel discussed Congress’s consideration of a waiver program for states with legalized cannabis in some form or another. “They [Congress] plan to give the U.S. Attorney General powers to offer waivers to state governments, exempting that state from federal law regarding cannabis, allowing banks and other institutions to take part in the industry without fear of federal backlash under the Controlled Substances Act,” says Stiffler. The waivers would have a duration of a number of years and a reporting and review process would follow the expiration of each waiver. “If the Attorney General decides that states are following the directives of the Cole Memo, then they will be able to continue, but if the data collected proves otherwise, those waivers would then be suspended or revoked,” adds Stiffler. It is important to note that the bill gives states the opportunity to correct any failures before those waivers are revoked.
According to Sarah Trumble, public opinion favors a policy move towards allowing states with cannabis legislation to operate freely. A poll conducted by Third Way found that 67% of voters would support Congress passing a bill giving states freedom from federal intervention with respect to cannabis policy as long as there is a robust regulatory framework in place. In October of last year, Congresswoman Suzan DelBene (D-WA) introduced the bill, H.R. 3746, The State Marihuana [sic] And Regulatory Tolerance (SMART) Enforcement Act. The bill outlines the waiver plan and would exempt states from the prohibition of cannabis as a result of The Controlled Substances Act. It also has measures in place to help prevent diversion of cannabis into the black market, protecting consumer safety and public health, eliminating criminal enterprise involvement and more.
According to Trumble, the SMART Enforcement Act would resolve many of the conflicts between federal law and state legalization measures. “It is the bridge that gets us from the broken system we have now to a future date when public opinion and Members’ positions may have shifted, while in the meantime fixing the problems people are experiencing on the ground,” says Trumble. She believes the bill provides for the protection of consumer safety through logical regulatory systems while eliminating federal prohibition of cannabis. “Every three years, a state will have to re-apply for the waiver and submit data showing that their regulations are working to keep Americans safe.” This would allow states to have the space they need to implement a sound regulatory framework.
One can speculate on a broad range of possible effects this bill could have. “It would allow banks to open accounts for and offer services to legal cannabis businesses so they no longer have to operate on an all-cash basis,” adds Trumble. Perhaps the most significant effect this bill could have on the cannabis industry is knocking down the burden of the 280E tax code on cannabis businesses primarily because it would exempt states from The Controlled Substances Act. “It would protect businesses owners and employees—as well as customers and patients—from federal prosecution and arbitrary DEA crackdowns, now or in the future,” says Trumble. This bill has the potential to be a panacea for so many ailments facing the cannabis industry. Participants in the cannabis marketplace should let their representatives know that they support this bill and show up at the polls in November to elect representatives that support this piece of legislation.
Aaron G. Biros is the editor-in-chief of CannabisIndustryjournal.com, an online trade journal focused on regulatory compliance, quality and safety in the cannabis industry. Hejoined Innovative Publishing, LLC full-time after graduating from Tulane University. Graduating with a B.A. in Environmental Studies, his coursework involved environmental sustainability, conservation policy, design thinking in collaboration, social innovation & entrepreneurship, food production & health, and environmental & health risk assessments. He has two years of experience working on staff as an associate editor for FoodSafetyTech.com, writing a series of articles focused on the intersection of food safety and environmental sustainability. Aaron is now the editor and publisher of CannabisIndustryJournal.com, a B2B digital trade publication that seeks to educate the global cannabis industry on everything seed-to-sale in both recreational and medical markets. CannabisIndustryJournal.com covers news, business trends, technology, regulatory compliance and other important areas, aiding in the advancement of a well-informed and safe market. Cannabis Industry Journal became a member of NCIA in May 2016.
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On June 19, Canada became the first G7 nation and second in the world after Uruguay to fully legalize cannabis for adult use, paving the way for what is estimated to be a CAD$9.2 billion dollar industry by 2025. Canadian Prime Minister Justin Trudeau Tweeted in response to the move:
“So many more people keep coming to Lobby Days which is amazing to see,” said Karson Humiston, founder of 
There were many Congressional offices that were receptive to the efforts and positions of NCIA members during Lobby Days. Heather took a meeting with Sen. Bernie Sanders’ (I-VT) office, for example, and after leaving the meeting she felt that it went wonderfully, stating, “Senator Sanders is a proponent for the safe and regulated use of cannabis whether in the medical side or the adult use side, so it was a meeting that for us was an opportunity to tell Bernie and his staff how much we appreciate the hard work that he’s done, ask him what we can do as an industry to help them continue the progress that they’ve already made and learn more about where his focus is.” Sullivan is well-versed in the issues facing cannabis businesses today and knows many other officials are still in need of convincing.
These 24 winners are now responsible for growing the supply of medical marijuana Ohio’s patients will use, a population estimated to be in the hundreds of thousands. The medical marijuana market in Ohio is expected to be worth $300-400 million once it matures, making the limited number of licenses available immensely valuable.
Early next week, the House Rules Committee will hold a hearing to discuss amendments to the upcoming appropriations bill that will fund the government for FY2018. The Rules Committee is used by leadership to maintain control over the House floor, and is 
“The reality is that half of U.S. states have already passed effective laws allowing patients legal access to medical cannabis, and it is changing lives,”
Each year, Congress recesses for the month of August. Traditionally, this time has been used for Members to return home to their districts and meet with constituents and, of course, campaign for re-election. Though this makes August a quiet month in D.C., it’s a great time for you and your colleagues to get involved with the political process, engage with Members of Congress, and educate them on cannabis policy. 
There’s no doubt that cannabis was on Congress’s mind because NCIA held its sixth annual Cannabis Industry Lobby Days in May! More than 150 cannabis professionals convened in Washington, D.C., for two days of advocacy that included more than 200 scheduled meetings and approximately 175 more drop-in meetings, as well as a 
According to Cody Stiffler, vice president of Government Affairs at BioTrackTHC, who was also present at the panel discussion, Congress has placed so many restrictions on the ability and powers of the DEA, that they can only reschedule cannabis to a Schedule II status. He believes there is almost no possible way that the DEA can de-schedule cannabis. The panel discussed Congress’s consideration of a waiver program for states with legalized cannabis in some form or another. “They [Congress] plan to give the U.S. Attorney General powers to offer waivers to state governments, exempting that state from federal law regarding cannabis, allowing banks and other institutions to take part in the industry without fear of federal backlash under the Controlled Substances Act,” says Stiffler. The waivers would have a duration of a number of years and a reporting and review process would follow the expiration of each waiver. “If the Attorney General decides that states are following the directives of the Cole Memo, then they will be able to continue, but if the data collected proves otherwise, those waivers would then be suspended or revoked,” adds Stiffler. It is important to note that the bill gives states the opportunity to correct any failures before those waivers are revoked.
ccording to Trumble, the SMART Enforcement Act would resolve many of the conflicts between federal law and state legalization measures. “It is the bridge that gets us from the broken system we have now to a future date when public opinion and Members’ positions may have shifted, while in the meantime fixing the problems people are experiencing on the ground,” says Trumble. She believes the bill provides for the protection of consumer safety through logical regulatory systems while eliminating federal prohibition of cannabis. “Every three years, a state will have to re-apply for the waiver and submit data showing that their regulations are working to keep Americans safe.” This would allow states to have the space they need to implement a sound regulatory framework.
Aaron G. Biros is the editor-in-chief of