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.
Members of Congress Announce Bipartisan Cannabis Caucus
by Michelle Rutter, Government Relations Manager
On February 16th, the House of Representatives took another step towards recognizing the need for federal reform of cannabis laws. Representatives Earl Blumenauer (D-OR), Dana Rohrabacher (R-CA), Jared Polis (D-CO), and Don Young (R-AK) announced their newly formed Congressional Cannabis Caucus. The bipartisan coalition will focus on issues like medical research, access for veterans, and business needs — including banking and 280E reform.
The four co-chairs of the caucus were united in their support for states to be allowed to determine their own cannabis policies. In addition, the group noted that the growing momentum for reform across the country has finally reached the halls of Congress. With eight more states legalizing some form of cannabis just this past November, the caucus co-chairs say there has been a “tremendous increase” in interest for joining the caucus, including from Republicans. The caucus will also allow members to talk freely about cannabis legislation and give the opportunity to show that cannabis consumers and entrepreneurs are an important part of the American economy.
Prior to the announcement today, the House had started an informal marijuana working group, but decided that it’s now time for a more formal cannabis caucus that seeks to educate other Members of Congress on the discrepancy between state and federal law, the importance of making sure that cannabis businesses are treated fairly, and that states’ rights are protected. The Cannabis Caucus is also an opportunity for NCIA to educate Capitol Hill staffers and policymakers on the issues our members face on a regular basis.
NCIA’s Cannabis Industry Lobby Days provide the best opportunity to show our nation’s decision-makers what a responsible and legitimate cannabis industry looks like and to help raise awareness of issues like the unfair tax and banking policies hampering our industry’s potential to grow and be treated like any other U.S. business sector. Your $25/person registration fee includes a lobby training session with NCIA’s government relations staff and two days of coordinated meetings with congressional offices across Capitol Hill.
Register today! NCIA’s Cannabis Industry Lobby Days – May 16-17, 2017
Eager to get more involved in cannabis politics and make your voice heard? Wondering how you can help secure the future of our industry in a time of uncertainty? Good news! NCIA’s annual Cannabis Industry Lobby Days in Washington, D.C. are coming in May.
It’s one of the most important ways you can stand up for cannabis reform and your business, and we don’t want you to miss it.
So CLICK HERE TO REGISTER TODAY and join us on May 16 and 17 for NCIA’s 2017 Cannabis Industry Lobby Days. NCIA’s Lobby Days provide the best opportunity to show our nation’s decision-makers what a responsible and legitimate cannabis industry looks like.
NCIA’s 2016 Cannabis Industry Lobby Days. Photo: Kim Sidwell, Cannabis Camera
NCIA members from across the country descend on Capitol Hill to tell their stories and urge their representatives to fix the unfair tax and banking policies crippling our industry.
With victories in eight states across the country during the 2016 presidential election, as well as the challenges ahead of us as we see a new administration come in to the White House, fixing federal policies is more critical than ever. Our team in Washington, D.C., works every day to make the industry’s voice heard, but nothing matches the power of a personal story personally told.
We’re excited that this year’s Lobby Days are being held in conjunction with the Spring 2017 Marijuana Business Conference & Expo, May 17-19 in Washington, D.C. MJBizCon is generously extending a $100 discount on full conference registration for Lobby Days attendees so be sure to register for Lobby Days and we’ll send the discount code in your confirmation e-mail.
We look forward to seeing you in 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.
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.
Member Spotlight: District Growers
While the fate of establishing a well-regulated cannabis industry in the District of Columbia remains up the air, a small handful of medical marijuana dispensaries have been operating for several years to serve extremely ill patients in our nation’s capital. Located in the northeast neighborhood of our nation’s capital, District Growers is a close-knit, local business founded with the goal of creating only the highest quality cannabis products on the market. This month, we chat with owner Corey Barnette to hear more about efforts to serve the community of Washington, D.C.
Tell me a bit about you and why you opened District Growers?
District Growers owner Corey Barnette
My background is that of an engineer-turned-investment-banker-turned-venture capitalist. In early 2003, I stepped away from the Small Enterprise Assistance Fund, an emerging market venture fund, to acquire small high-growth companies operating in traditional industries. Between 2003 and 2010, I and my team acquired six different small businesses across the country in numerous industries.
In 2008, a friend and colleague invited me to serve on the board of – and eventually acquire – the San Diego Medical Collective (SDMC), a dispensary in San Diego, California. The purchase of SDMC was my entry to the formal medical cannabis industry. While operating in San Diego, my team and I built two of the ten largest dispensaries out of more than 238 dispensaries in the San Diego area. We served a patient base greater than 16,000 patients strong and produced approximately 30% of the medicine provided within our own patient gardens. After federal authorities began threatening landlords in the San Diego area, I sold the operations in San Diego to my employees after converting our platform to a delivery service.
Upon winning a license in Washington, D.C., where I maintained residence since 1999, I founded District Growers to offer medical marijuana program patients with safe, high-quality, medicinal-grade cannabis and cannabis-infused products. I also acquired the Metropolitan Wellness Center, a licensed dispensary in Washington, D.C., to provide a high-quality, dignified purchasing experience to patients in a comfortable and aesthetically pleasing environment. Leveraging our prior experience, knowledge of local preferences, and superior operating tactics, we have become the largest dispensary operator in Washington, D.C., with approximately a third of patients belonging to our dispensary exclusively.
Why should patients seeking medical cannabis seek out District Growers?
At District Growers, we recognize that patients depend on our products for their livelihood and well-being. Further, many of those patients are our employees, relatives, and friends. Because of this, we engage in a constant quest to offer the best quality products – bar none.
Internally, we use the phrase “Grow True” to define our efforts. We use this term as a constant reminder of our goal to provide to those who depend on our solutions. To accomplish this, we marry cutting-edge cultivation solutions, proven technologies, and nature’s very own touch to achieve unmatched quality. When it comes to cultivation, we believe that convenient shortcuts should never overcome proven methods. Consequently, we have taken the time to optimize our methods and processes to deliver the highest quality. From our production methods to our service, we endeavor to exceed all expectations. It is not enough to be the best if the best is not perfect. Put simply, to Grow True is to pursue perfection.
As a business owner, you’re very involved in your community and in causes that you care about. Can you tell us more about what matters most to you, and how your business participates in pushing for progress?
The team at District Growers
As a provider of relief solutions to the sick and vulnerable, District Growers views its entire offering as a betterment to the community. Additionally, we recognize that our industry carries with it a negative taboo. To combat this taboo and to carry the burden of good stewardship within our community, we push for progress primarily in three ways: in the garden, in the community, and in the town hall.
In the Garden – Simply put, we endeavor to be the most trusted source of medicinal grade cannabis to patients seeking treatment with cannabis.
In the Community – District Growers is a strong supporter of community gardens in Washington, D.C. We offer employees paid time-off when such is approved in the service of working with community gardens and in-home fruit & vegetable gardens.
In the Town Hall – District Growers actively works with legislators, regulators, and activist organizations to set policies around cannabis that better serve the public interest. It is our belief that today’s prohibitionary policies do more harm than good to our society. Consequently, we actively seek to change these policies for the betterment of our communities and our industry.
Why did you join NCIA?
Because we exist in an industry that suffers a negative stigma, it is imperative that we organize as an industry to promote our industry image, to promote good policy, and to promote good outcomes. NCIA is best positioned generally to do that. Consequently, we seek to be supportive.
Breaking It Down: Appropriations
by Michelle Rutter, NCIA Government Relations Coordinator
CannApprops
Every year, Congress must pass appropriations legislation to fund federal government operations for the upcoming fiscal year. This annual funding bill has been one of the only avenues by which pro-cannabis reform language can be inserted into the federal budget, due to Congress’ inability to pass meaningful stand-alone legislation addressing the legal cannabis industry.
The Appropriations Committees have always been two of the most influential committees in Congress, since the Committees’ power is derived from its ability to disburse funds. The House Appropriations Committee is currently chaired by Rep. Hal Rogers (R-KY), with Rep. Nita Lowey (D-NY) as the highest-ranking Democratic member, and the Senate Appropriations Committee is chaired by Thad Cochran (R-MS) with Barbara Mikulski (D-MD) as the ranking Democrat.
Because it is unlikely that Congress will enact stand-alone pro-cannabis legislation this session, NCIA has decided to focus intensely on the appropriations process this year. In addition to making sure that the Rohrabacher-Farr medical cannabis amendment passes for the third year in a row, NCIA will be focusing on getting amendments included in the final budget bill that pertain to banking access and that protect all state-compliant cannabis businesses, not just medical ones. The continued inclusion of the Rohrabacher-Farr amendment in the final budget bill is crucial to cannabis policy moving forward into a new administration. We at NCIA want to ensure that this amendment is seen as non-controversial as we go into FY2017.
Over the years, the budget process in Washington, D.C. has become broken and it has become harder for Congress to perform basic functions. New Speaker of the House Paul Ryan (R-WI) has thrown his support behind returning to “regular order” in the budget process – meaning that Congress would return to the piece-by-piece appropriations process rather than passing large omnibus budget bills as has been the case in recent years. Although the Speaker has good intentions, small groups and caucuses in the House of Representatives are unhappy with the spending levels proposed in many of the new appropriations bills, making it more likely that an omnibus bill will again be passed, despite Speaker Ryan’s desire to return to regular order.
This “regular order” of the appropriations process usually starts in February as various pieces of legislation works its way through the Appropriations Committee and finally to the House/Senate Floor. Congress typically starts with less controversial bills in April and then works through the spring and summer months until all appropriations bills are completed. Legally, they need to be completed by September 30th (as October 1st is the start of the new fiscal year). Regular order gives NCIA multiple opportunities to insert pro-cannabis amendments into the legislation. With an omnibus or stopgap bill, it becomes much more difficult to include pro-cannabis amendments.
In Years Past
Last year, there were two pro-cannabis amendments included in the Commerce, Justice, and Science Appropriations bill that made it into the final budget: the Bonamici-Massie industrial hemp amendment and the Rohrabacher-Farr medical marijuana amendment. The Bonamici-Massie amendment blocks federal money from being used to prevent states from allowing the use, distribution, possession, or cultivation of industrial hemp. This means that the federal government cannot use federal funds to enforce federal law against state-compliant businesses dealing with hemp. This measure passed the House of Representatives overwhelmingly: the vote was 282-146, with 101 Republicans voting in favor.
The second pro-cannabis amendment in the FY2016 budget was the Rohrabacher-Farr medical marijuana amendment, which was included for the second year in a row. This amendment bans the Department of Justice from spending money to prevent the implementation of state-level medical cannabis programs, in addition to removing funding for federal medical cannabis raids, arrests and prosecutions in states where medical cannabis is legal. The vote count increased from 219-189 in 2014 to 242-186 this year, with 67 Republicans voting ‘Yes’. Just like the Bonamici-Massie hemp amendment, the Rohrabacher-Farr amendment prohibits the Department of Justice from enforcing federal law against state-legal medical cannabis businesses.
Remember…
It’s crucial to remember that these appropriations amendments only pertain to the current fiscal year and have to be voted on and renewed every year. The NCIA team and our lobbyists in Washington, D.C., are working intently with appropriators and other Members of Congress to ensure that pro-cannabis amendments and provisions are included in the federal budget this year – whether that be through “regular order” or otherwise.
Want your voice heard in our nation’s capitol on issues affecting the cannabis industry? Join us for our 6th Annual NCIA Member Lobby Days in Washington, D.C., on May 12 & 13, 2016.
To make the most out of the Lobby Days experience, register early so that we can begin the process of setting up meetings for you on the Hill. Members who register before April 30th will be entered to win admission and travel expenses for two at NCIA’s Cannabis Business Summit & Expo, including airfare and lodging.
Video Newsletter: We’re going to D.C. in May, and so should you…
One of our most impactful events of the year is just two months away, and NCIA wants you to be there with us in Washington, D.C.
In this month’s video newsletter, hear from NCIA executive director Aaron Smith, as well as NCIA members Steve DeAngelo of Harborside Health Center, Jaime Lewis of Mountain Medicine, Brian Caldwell of Triple C Collective, and Ean Seeb of Denver Relief, as they share their stories about joining NCIA on Capitol Hill for our annual Cannabis Industry Lobby Days.
Register today for NCIA’s 6th Annual Cannabis Industry Lobby Days, May 12-13.
To make the most out of the Lobby Days experience, register early so that we can begin the process of setting up meetings for you on the Hill. Members who register before April 30th will be entered to win admission and travel expenses for two at NCIA’s Cannabis Business Summit & Expo, including airfare and lodging.
Why Lobby Days Are Important To Me
by Michael Correia, NCIA Director of Government Relations
As the remaining days of winter wind down, each new day brings added excitement for me as we look forward to spring and NCIA’s 6th Annual Lobby Days, being held May 12th and 13th. Lobby Days has always been a highlight of my year, as it gives me an opportunity to meet our wonderful members from around the country and to showcase our industry to members of Congress.
Michael Correia, NCIA’s Director of Government Relations
Before joining the NCIA team in 2013, I spent more than 15 years working on Capitol Hill. One aspect that I will always remember is seeing all the interest groups converging on Capitol Hill to hold their individual lobby days and advocate for a particular issue. It gave me, as a congressional staffer, the opportunity to see first-hand who supported (or opposed) certain policy issues and to gain a thorough understanding about those particular issues, making the issue personal to me. As we get nearer to NCIA’s Lobby Days, it’s very important for you to find the time, make the sacrifice, become politically engaged, and ensure your voice is heard as we put a personal face on this industry.
For most NCIA members, cannabis reform is the number-one policy issue, but for congressional offices, it is only one of hundreds of issues they tackle on a regular basis. When NCIA members show up for Lobby Day, the marijuana issue is no longer theoretical, but personal.
It is the child with epilepsy, it is the returning vet with PTSD, it is the grandparent with cancer, or the parent dealing with chronic pain.
It is the local business owner, paying taxes, and providing jobs.
It is “regular” people asking congressional offices to support an issue that is broadly supported in the district.
There is no easy way to say it, but politicians are risk-averse and take the path of least resistance. It is much easier for them to support an issue that is broadly “accepted” rather than what is perceived to be a “fringe” issue. Putting a face to our cause is so important to changing Congress’ perception of our industry.
If you follow the news, you know that Congress has gotten so polarized that it’s becoming harder and harder for them to pass basic legislation – even funding our nation’s budget. With all the issues going on in the world today, it is easy for political leaders to just forget about an issue and leave it to the side. Political change does not happen in a vacuum; it takes active engagement and continual struggle to achieve success. Our issue will not be swept aside and forgotten. Between the presidential election and so many states having ballot initiatives, 2016 is sure to be a truly historic year for cannabis reform. It is imperative that the next president continue on with the previous administration’s policies on cannabis (and do even more). The best way to ensure continual progress is having Congress affirm what is already happening at the state level and continue supporting pro-cannabis legislation in larger and larger majorities.
NCIA’s 5th Annual Lobby Days in Washington, D.C.
My goal has always been to build up the kind of respected, professional, effective government relations effort that every other industry in America has and that our members can be proud of, but I can’t do that without your help. My job in Washington, D.C., is not mutually exclusive to what is happening at the local level. When I walk into an office to discuss our issues, it’s always refreshing when they say “we’ve been hearing from our constituents on this issue.”
In addition to having your voice heard and putting a legitimate face on our industry, attending Lobby Days gives you an opportunity to meet our government relations office and witness first-hand what we are trying to accomplish at the federal level, along with meeting other cannabis reformers from around the country. This is just one part of our journey. Being professional. Being effective. Being heard. To help achieve all of our goals, I need your help. Please find the time to make sure your voice is heard and join us for Lobby Days.
Register before April 30 and you’ll be entered to win admission and travel expenses for two at NCIA’s Cannabis Business Summit & Expo, including airfare and lodging at the Oakland Marriott Convention Center June 20th through 22nd. The winner will be announced at Lobby Days, and you must be present to win.
Editor’s Note: In January, Ean Seeb, who serves on the Board of Directors for NCIA and is co-founder of Denver Relief and Denver Relief Consulting, coordinated with NCIA’s Director of Government Relations Michael Correia to arrange personal meetings with congressional offices in Washington, D.C.
Ean Seeb speaks at NCIA’s Policy Symposium in 2015
In December, while planning for a January business trip to Washington, D.C., I realized that I should take the opportunity to use some downtime to lobby Capitol Hill offices on issues affecting the cannabis industry. I reached out to NCIA’s Executive Director Aaron Smith and Director of Government Relations Michael Correia and announced my intention. I was amazed at their responsiveness and support for my idea.
The whole planning process was quite easy. I let them know the date I was available and the focus of my trip and let the D.C. office coordinate logistics. Denver Relief Consulting has business interests in Hawaii and I wanted to focus on that state’s Congressional delegation. My goals were to update offices on medical marijuana implementation in Hawaii and ask these offices to co-sponsor The Small Business Tax Equity Act of 2015 (S. 987 & H.R. 1855), which amends Internal Revenue Code Section 280E to allow cannabis businesses in compliance with state law to take standard tax deductions and credits relating to business expenses.
The trip went very smoothly. I met up with Michael the evening before our meetings to discuss issues and logistics. Although I am well-versed on issues affecting our industry, it was really informative for me to sit down with him and discuss our focus, strategy, and talking points. We were joined by NCIA Member Tae Darnell, CEO of Sensi Media, whose background on cannabis reform in Hawaii goes back many years and was a great asset to our meetings.
We visited offices in both the Senate and House of Representatives, and each office was very informed about cannabis issues, was responsive to our concerns, and asked insightful questions. I remember back in 2013 when NCIA held its 3rd annual member lobby days. During those meetings, staffers would drop their jaws and say “You’re here to talk about what?” It was almost humorous because, back then, staffers were still in shock that cannabis issues were being brought to them. This time, one of our meetings lasted a full hour! The reception from congressional offices has evolved significantly over the past five years, and that can be attributed to the work NCIA has done on the ground.
The National Cannabis Industry Association’s 5th Annual Lobby Days in Washington, D.C.
Although our meetings were with Democratic offices, who tend to be supportive of our issues, they were still not co-sponsors of legislation that would solve our 280E tax problems. The offices really appreciated tying the issue to Hawaii and answering questions specifically related to the state and how 280E will negatively affect their constituents. Each of the offices will discuss co-sponsoring legislation in the future, and our D.C. office will continue working with them to gain their support.
I did my homework with information provided by NCIA through newsletters, packets, and the website. An hour’s worth of studying on the front end made for some really powerful and effective meetings. As an NCIA member, it was personally and professionally fulfilling to be able to leave the Capitol thinking, “Today, I made some good progress on our issues, and for our industry, through the work done with these folks.”
We love nothing more than getting our members in front of lawmakers. That’s where change happens. https://t.co/kcdYFf6oJT
I wholeheartedly encourage other NCIA members not only to go to NCIA’s 6th annual Member Lobby Days in May — but also to go to D.C. on your own. The NCIA Government Relations team will be there with you every step of the way.
As I was leaving, Michael said, “Please tell other members who happen to be traveling to D.C. that we are available for any NCIA member, at any time, who wants us to coordinate personal meetings with congressional offices.”
If you are interested in contacting NCIA’s Government Relations department to schedule meetings with Members of Congress in Washington, D.C., please email Government Relations Coordinator Michelle Rutter at michelle@thecannabisindustry for more information.
2016: What’s Next?
by Michelle Rutter, Government Relations Coordinator
This year is arguably the most crucial yet for the burgeoning cannabis industry, especially as it relates to policy. Although NCIA primarily advocates for cannabis reform at the federal level, what happens in each individual state is vital to the stances Members of Congress take on our issues.
Members of Congress care deeply about issues that directly affect their specific state or district. It’s imperative that more states enact cannabis reform legislation so that more Members have a vested interest in protecting their constituents. While cannabis reform is sweeping the nation at an almost unprecedented rate, it takes time for politicians in Washington, D.C., to catch up with public opinion back home. If all of the federal lawmakers representing just the 15 states mentioned below were to vote positively on pro-cannabis legislation, it would add up to more than 180 Representatives and nearly 30 Senators.
Take a look below and see what’s coming up next in 2016. Remember that by becoming a member of NCIA, you are adding your voice to the coordinated and unified campaign at the federal level to allow cannabis businesses access to financial services, fix tax section 280E, and ultimately end federal cannabis prohibition.
The United States of Cannabis
Arizona activists remain ahead of schedule and have nearly gathered the 150,000 signatures needed to put the state’s Campaign to Regulate Marijuana Like Alcohol initiative on the November 2016 ballot. (The campaign ultimately aims to collect 230,000 in order to insure against signature drop-off.) It’s estimated that Arizona’s adult-use market could be worth up to $480 million.
With a multi-billion-dollar cannabis industry in California alone, passing an adult-use legalization initiative in the state is vital to ending federal prohibition. The most prominent full retail initiative gathering signatures for the November 2016 election is the Adult Use of Marijuana Act, which is backed by billionaire Sean Parker and the Marijuana Policy Project.
Legalize Maine and the Marijuana Policy Project have joined forces to legalize adult-use cannabis in 2016. Legalize Maine has already collected 80,000 signatures. Only 61,000 signatures are necessary to place the measure on a statewide ballot, but the organization’s goal is 95,000, to insure against drop-off. The deadline to submit signatures is February 1st.
Last August, a pair of cannabis advocacy groups separately filed paperwork to get adult-use legalization on the 2016 ballot in Massachusetts. The state recently confirmed that a measure to legalize recreational cannabis next year has enough valid signatures to force the legislature to consider the measure. If the legislature decides to pass, then the campaign will have to collect another 10,792 signatures to formally make the November ballot.
There’s no question that adult-use legalization will be on the ballot this year in Nevada. Initiative Petition 1, which would tax and regulate marijuana similarly to alcohol, has been certified for the 2016 ballot. Backers had previously collected nearly 200,000 signatures to either force legislators to enact their initiative or put it on the ballot. When state lawmakers abstained from voting on the issue, the measure was automatically forwarded to this year’s ballot for a popular vote.
In Florida, the group United for Care received clearance from the state Supreme Court for a 2016 ballot measure that would legalize medical marijuana. The group nearly succeeded in legalizing medical marijuana in 2014, garnering 58% of the vote but falling barely short of the state’s constitutionally mandated 60% margin needed to pass,
The nation’s capital continues to debate cannabis. In December’s federal budget bill, the taxation and regulation of marijuana in Washington, D.C., was blocked by Congress again, though possessing and gifting cannabis remains legal in the city.
This month, Hawaii will begin accepting applications for medical cannabis businesses. The bill signed into law last summer opens the door for up to 16 dispensaries on the islands.
It was recently announced that Illinois saw approximately $1.7 million in medical cannabis sales during November and December of 2015. There are already petitions being circulated in the state that would expand the law’s qualifying conditions.
Maryland will award cannabis cultivation, processing, and dispensary licenses this summer. Industry advocates were pleased with the amount of interest the state’s program garnered: more than 1,000 applications were submitted.
Officials in Michigan have approved language for three different adult-use cannabis legalization initiatives for the 2016 ballot. In order to have the best chance of passing, it’s important for these groups to coalesce behind one initiative.
At the end of 2015, New Hampshire began issuing medical marijuana cards to qualifying patients. It’s expected that the state will open medical dispensaries in 2016.
After a long and arduous journey, New York’s medical cannabis program became operational this month. The cannabis industry expects the program and the law’s qualifying conditions to expand this year.
In the first week of 2016, Oregon began accepting adult-use cannabis business license applications. The state has no limit on how many licenses they will decide to award.
Vermont may become the first state to legalize adult-use cannabis through the legislative process in 2016. The proposed bill would allow for up to 86 storefronts and five different business license types.
Bonus: Election 2016 – Yes, We Canna
As we all know, a new president will be elected this November, and with that a new administration will assume power next January. It is very crucial that Congress pass more pro-cannabis legislation before then.
It’s probable that Attorney General Loretta Lynch will be replaced in 2016 or early 2017. This is important because it is the Department of Justice that enforces and prosecutes federal marijuana laws.
Another possibility for 2016 is that the acting head of the Drug Enforcement Administration, Chuck Rosenberg, could be replaced as well. Rosenberg is notorious for his gaffe last year when he called marijuana “probably” less dangerous than heroin.
On New Year’s Eve, officials from the Substance Abuse and Mental Health Services Administration posted a notice on the Federal Register that calls for a report “presenting the state of the science on substance use, addiction and health” to be released in 2016. Industry advocates are hopeful that this report could be the first sign of re- or de-scheduling cannabis from the Controlled Substances Act.
During 2016, NCIA will continue working with D.C.-based public affairs firms Heather Podesta + Partners, and Jochum Shore & Trossevin PC to magnify our efforts to address the industry’s top federal priorities: access to basic banking services and fair federal taxation.
In addition to NCIA’s lobbying and advocacy efforts, NCIA exists to connect and educate our members on all facets of the cannabis industry. Our industry supports tens of thousands of jobs, tens of millions in tax revenue, and billions in economic activity in the United States.Our core mission is to ensure that our members are treated like businesses in any other American industry. Join NCIA today to get involved and be a part of the cannabis revolution!
Do you have questions regarding any upcoming events in your area or others across the country? Reach out to events@thecannabisindustry.org any time with your questions, comments, or concerns.
Interested in sponsoring one or a series of events in a particular region throughout the year in order to gain valuable exposure for your company to our nationwide network of established business owners? Please contact Brian Gilbert at brian@thecannabisindustry.org for more information on series rates and associated discounts for packages.
Interested in speaking at the upcoming Cannabis Business Summit? Please contact brooke@thecannabisindustry.org for more information on remaining opportunities.
Appropriations Pros and Cons in 2015 for Cannabis
by Michelle Rutter, Government Relations Coordinator
Every year, Congress must pass appropriations legislation to fund the government for the upcoming fiscal year. This annual funding bill has been one of the only avenues by which pro-cannabis reform language can be inserted into the federal budget, due to Congress’ inability to pass meaningful stand-alone legislation addressing the legal cannabis industry.
This year, two riders were included in the budget bill pertaining to cannabis. The first, known as the Rohrabacher-Farr amendment, bans the Department of Justice from spending money to prevent the implementation of state-level medical cannabis programs, in addition to removing funding for federal medical cannabis raids, arrests, and prosecutions in states where medical cannabis is legal. When debated on the House floor this summer, the vote count increased from 219-189 in 2014 to 242-186 this year, with 67 Republicans voting ‘Yes.’ The Rohrabacher-Farr language was included in the final budget bill for the second year in a row, which is a promising sign of progress in Washington, D.C.
A rider known as the Bonamici-Massie amendment, which prevents the DEA from intervening with state-sanctioned and legal hemp, was also included in the final budget package. This section blocks federal money from being used to prevent states from allowing the use, distribution, possession, or cultivation of industrial hemp. It’s important to note that although this progress is promising, the DEA has ignored appropriations language pertaining to cannabis in years prior.
There were other commonsense policy reforms related to cannabis, which were proposed and added to earlier versions of the budget package, but which unfortunately did not make it into the final bill. A crucial example was a provision which would have prevented the Treasury Department from punishing banks that work with legitimate marijuana-related businesses. Another would have allowed Veterans Affairs (VA) doctors to recommend medical cannabis to veterans without fear of retaliation or punishment, and would have also prevented the VA from denying services to any veteran who is a medical marijuana patient.
An additional disappointment in the final budget package was the continuation of language from the previous year which blocks the adult-use sale and purchase of cannabis in Washington, D.C.
It’s important to remember that these appropriations amendments only protect states’ medical cannabis and hemp laws for the upcoming fiscal year and have to be re-included and voted on every year. While this progress is encouraging, it falls short of achieving our goals. NCIA will continue lobbying on behalf of the cannabis industry to achieve the substantive and lasting reforms that our businesses deserve.
Video Newsletter: 5 Years of Advocacy, Education, and Community
Even if you couldn’t attend NCIA’s 5th Anniversary Banquet held in Las Vegas on November 11th, you can still reflect on five years of industry advocacy, education, and community with a few of our founding members in this video presentation.
We are proud of the nearly 1,000 member-businesses that have come together as the unified voice of the cannabis industry.
Not yet a member of NCIA? It’s never too late to get involved in paving a prosperous future for the cannabis industry — join today!
Special Thanks to: Christie Lunsford, Jay and Diane Czarkowski, Brian Vicente, Ean Seeb, Erich Pearson, Étienne Fontán, Julianna Carella, Jill Lamoureux, Rob Kampia, and Steve DeAngelo.
D.C. UPDATE: The November Election, What Comes Next, and Welcoming a New Staffer
By Michael Correia, NCIA Director of Government Affairs
As we come up on Halloween, I can’t think of a more fitting holiday to give a DC update (as most things coming out of Congress tends to scare us all!)
The election is just around the corner and, in addition to determining the make-up of Congress, there are four very important marijuana ballot initiatives voters will be deciding on. Voters in Alaska, Oregon, and Washington, D.C. will be voting on some form of an adult-use, tax-and-regulate structure (similar to Colorado), and Florida voters will decide on legalizing medicinal marijuana. The passage of all four, in addition to being positive developments in the states, would certainly help our work in D.C. Members of Congress are self-interested and they care about their states and their districts. When more states legalize marijuana, it makes my job easier, as it forces more members of Congress to address the issue.
After the election, Congress will come back for a very short (two week) “lame-duck” session. In that time, they will vote on party leadership posts and determine committee chairs, in addition to funding the government. Because the two issues NCIA members care most about are 280E tax reform and resolving the banking issue, the committees of jurisdiction in the House are the Ways and Means Committee and the Financial Services Committee. In the House, it’s a near certainty Republicans will stay in control; so for Ways and Means, it’s looking like Congressman Paul Ryan of Wisconsin will be Chair, and for Financial Services, it’s looking like Congressman Jeb Hensarling of Texas will be Chair (although both will be challenged by other members). Neither of them have been supporters of marijuana policy reform in the past and have voted in opposition to our amendments when they were on the House Floor earlier this year.
Control of the Senate is still up in the air, and it will come down to 3 competitive seats. The results should be known soon after polling places close, but in Louisiana, if no candidate receives over 50%, then a run off election is held in December. So it is conceivable that control of the Senate may not be determined until December 7. Exciting times indeed! The committees of jurisdiction in the Senate are the Banking Committee and the Finance Committee, and Senate Chairmen are picked based on Committee seniority.
Halloween also happens to be my one-year anniversary with NCIA! And what a year it’s been. I feel as if so much has been done in the past year, but there is so much more to do. I look forward to the upcoming year and am even happier to say that our DC operation is expanding. NCIA has hired Michelle Rutter as our new government affairs coordinator. Having her on board will make me more efficient and effective in my job and will allow me to focus more on strategy, fundraising, advocacy, and taking NCIA to new levels.
Prior to working for NCIA, Michelle was a Research Analyst at a government affairs firm in Washington, DC, 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. 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, DC, suburb of Alexandria, VA.
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“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,”
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 
At District Growers, we recognize that patients depend on our products for their livelihood and well-being. Further, many of those patients are our employees, relatives, and friends. Because of this, we engage in a constant quest to offer the best quality products – bar none.
A rider known as the Bonamici-Massie amendment, which prevents the DEA from intervening with state-sanctioned and legal hemp, was also included in the final budget package. This section