Current Issues

Descheduling and Regulating Cannabis at the Federal Level

NCIA is working to de-schedule cannabis at the Federal level and put in place a regulatory framework that protects the public and fosters a flourishing small businesses community that can replace the illicit market. While we support any Federal efforts that benefit the cannabis industry, NCIA understands that a successful, regulated cannabis industry can only survive if cannabis is removed from the Federal Controlled Substances Act. NCIA has created groundbreaking recommendations for how cannabis should be regulated at the Federal level.

Legal Hemp Cannabinoid Products

NCIA supports legal hemp and is advocating for sensible federal regulations on hemp products based on their intended use. Both hemp- and marijuana-derived cannabinoid products with potentially intoxicating properties should be regulated properly so that they are subject to testing, proper labeling, and only available to adults. We oppose federal or state prohibition on these products.
We also support increasing the total allowance for THC in hemp crops from 0.3% to 1%, which is consistent with the policies of other hemp-producing nations. The current low THC threshold has forced many farmers to exit the industry for fear that they will have to destroy an entire crop if the total content is slightly above this arbitrary threshold.

Equal Access to Banking

Nobody benefits when legal cannabis businesses are unable to access credit card processing, lending, or basic financial services without exorbitant fees. A large number of banks in this country are reluctant or simply not willing to work with entities involved in the sale of cannabis, even when those sales are legal under state law. This is causing major difficulties and a public safety crisis for thousands of businesses forced to operate in a cash-heavy environment. NCIA is dedicated to finding a solution to this problem by supporting legislation that will give all banks the confidence they need to work with cannabis businesses. NCIA successfully advocated for the introduction of the “SAFE (Secure and Fair Enforcement) Banking Act,” which provides a safe harbor to financial institutions doing business with state-legal cannabis providers. NCIA has been hard at work behind the scenes gathering intel, lobbying offices, and educating lawmakers and their staff. In September 2019, the SAFE Banking Act (H.R. 2215) became the first piece of cannabis reform legislation to ever pass out of the United States House of Representatives by an astounding bipartisan vote of 321-103. NCIA is working to pass the bill through both chambers of the current Congress.

Federal Re-scheduling

NCIA supports reclassifying marijuana from Schedule I to III status in the Controlled Substances Act as a critical first step in the effort to end cannabis prohibition.
Rescheduling alone, however, is not enough. It's critical that the Biden Administration and Congress also ensure the federal agencies such as the FDA and DOJ are directed to not interfere with the operations of state-licensed businesses operating in multiple states with a legal cannabis industry. And, ultimately, the federal government must harmonize its policies with the laws in the vast majority of states by removing cannabis from the Controlled Substances Act and creating a new federal regulatory framework for whole plant cannabis products.

Fair Tax Policy

Outdated federal tax policies unfairly penalize state-licensed cannabis businesses by imposing effective tax rates double or triple the rates of other comparable small businesses. Section 280E of the Internal Revenue Code prohibits businesses involved with Schedule I and Schedule II drugs in “drug trafficking” from deducting normal business expenses from their gross income.
On behalf of our members, NCIA is leading the charge on Capitol Hill to bring about fair tax policies for the legal cannabis industry, including retroactive relief from 280E liability for legal businesses after rescheduling marijuana to Schedule III.

Social Justice and Equity in the Cannabis Industry

Although replacing marijuana prohibition with sound regulations is proving successful in replacing underground markets with responsible, state-licensed cannabis businesses, we still have much work to do in terms of building a diverse, equitable, and inclusive industry.
Cannabis use is roughly equal among African-Americans and whites, yet African-Americans are nearly four times more likely to be arrested for possession of the substance. Higher arrest and incarceration rates for these communities are not reflective of increased prevalence of drug use, but rather of law enforcement’s disparate focus on urban areas, lower income communities, and communities of color.

Undercutting the Illicit Market

Support for cannabis legalization continues to spread across the country as more and more states join the effort. However, NCIA is keenly aware that an illicit market that threatens the health and safety of the public while undermining the legal cannabis market continues. Until we have true legalization at the Federal level that allows for broad access to a regulated market, which would ultimately displace the illicit market, we must address the current state of the illicit market that continues to plague law enforcement and lawful industry operators who struggle to compete with cheap, unregulated products. NCIA is facilitating conversations with a diverse representation of stakeholders, from law enforcement to formerly incarcerated license holders, to discuss how best to disrupt the illicit market at this stage and create a thriving, regulated, legal market.

Free Trade for Cannabis-Related Products

NCIA supports the reform of U.S. Customs practices that unnecessarily harm American businesses by obstructing imports of legal products that contain no cannabis but are used in state-licensed cannabis cultivation, production, or retail centers. Federal marijuana prohibition already puts the United States at a competitive disadvantage in the global cannabis marketplace as countries like Canada and Israel have enacted modern marijuana laws. It makes no sense to worsen the problem by prohibiting the importation of cultivation equipment, safe consumption devices, and other legal products.

Federal Resources & Appropriations

Given the success of modern state cannabis policies and the overwhelming public opposition to federal interference with those laws, NCIA believes that U.S. taxpayers shouldn’t be forced to shoulder the burden of paying for federal enforcement of marijuana laws against legal cannabis businesses that are licensed by the state and embraced by their local communities.

Veterans Access & Research

According to a survey conducted by the American Legion, 22% of U.S. military veterans report using medical cannabis to treat Post Traumatic Stress Disorder (PTSD) and other conditions stemming from their service. It’s shameful that our federal laws continue to criminalize our nation’s heroes for simply trying to find relief when a growing body of evidence shows that cannabis is a safe and effective treatment for PTSD symptoms and many other conditions.
NCIA strongly supports bipartisan congressional efforts to expand access to veterans’ access to medical cannabis by allowing it to be prescribed by Veterans Administration physicians.

Combating the Opioid Epidemic

The opioid overdose crisis has become one of the most pressing public health challenges facing the country today, with more than 33,000 Americans losing their lives to opioid overdoses in 2015 alone. There is mounting evidence, however, that cannabis can help reduce opioid abuse and addiction when available as an alternative for treatment for chronic pain.