National Cannabis Industry Association Responds to FDA Statement on Cannabidiol (CBD) Regulation

FOR IMMEDIATE RELEASE
January 26, 2023

Contact:
Aaron Smith, CEO and Co-founder
(303) 223-3554
Bethany Moore, Director of Communications
(303) 223-9727
Communications@TheCannabisIndustry.org

National Cannabis Industry Association Responds to FDA Statement on Cannabidiol (CBD) Regulation

The Food and Drug Administration concludes a new regulatory pathway is needed for CBD products; advocates call for swift congressional action on cannabis policy

Washington, DC – Today the Food and Drug Administration announced that it has concluded that regulations governing food and supplements would not be appropriate for Cannabidiol (CBD) products and that the agency will work with Congress to develop a new way forward.

Cannabis industry advocates are disappointed with this result after the FDA’s protracted study of the issue since 2019 but are hopeful the decision will put more pressure on Congress to move to sensibly regulate CBD and other cannabis products.

“Today’s announcement by the FDA underscores the urgent need for Congress and the Administration to take swift action to modernize federal cannabis policy and regulate CBD and other products appropriately and in harmony with the vast majority of states that have already legalized cannabis in some form,” stated Aaron Smith, National Cannabis Industry Association (NCIA) CEO and Co-founder. “A vibrant state-regulated industry has formed to safely provide cannabinoid products and medicines to millions of Americans, which has the support of the vast majority of U.S. voters. Moving forward with bi-partisan federal cannabis reform this year would be both good public health policy and good politics.”

In 2019, NCIA published the white paper Adapting A Regulatory Framework For The Emerging Cannabis Industry, which outlined recommendations for four “regulatory lanes” for cannabis products, including CBD and other non-psychoactive cannabinoids.

A November 2022 Gallup survey found that 68% of Americans support making cannabis legal for adults and a recent Pew Research Center poll found that less than 10% of Americans still support marijuana prohibition.

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The National Cannabis Industry Association (NCIA) is the largest cannabis trade association in the U.S. and the only one representing small cannabis businesses at the national level. NCIA promotes the growth of a responsible, sustainable, and inclusive cannabis industry and works for a favorable social, economic, and regulatory environment for that industry throughout the United States.

Cannabis Administration and Opportunity Act Introduced in U.S. Senate

FOR IMMEDIATE RELEASE
Thursday, Jul 21, 2022

CONTACT:
Bethany Moore, Communications Director
(240) 678-2654, Communications@TheCannabisIndustry.org

Cannabis Administration and Opportunity Act Introduced in U.S. Senate

Legislation Would Institute Tax and Regulatory Structure for Legal Cannabis;

National Cannabis Industry Association Applauds Historic Measure, Concerned About Potential Impact on Small Businesses

WASHINGTON, D.C. – Today, Senate Majority Leader Chuck Schumer (D-NY) along with Finance Committee Chair Ron Wyden (D-OR), and Sen. Cory Booker (D-NJ) introduced the Cannabis Administration and Opportunity Act (CAOA) which is now the Senate’s only pending legislation that would provide comprehensive cannabis policy reforms across the nation.

The landmark bill would remove cannabis from the federal Controlled Substances Act and move regulatory responsibility from the Drug Enforcement Administration (DEA) to the Alcohol and Tobacco Tax and Trade Bureau (TTB), the Food and Drug Administration (FDA) and other agencies to protect public health and safety. The legislation would also allow the state-regulated medical and adult-use cannabis industries already in place in 37 states to operate without federal interference.

The Senate Democrats’ CAOA would also institute a federal excise tax of 5-25% on cannabis on top of the already-hefty state taxes imposed on the industry, concerning advocates for small cannabis businesses and equity operators.

“We applaud the authors of this legislation for working to bring federal law into harmony with the states and the vast majority of voters who have called for an end to prohibition,” said Aaron Smith, co-founder and chief executive officer of the National Cannabis Industry Association. “We look forward to working with Senators on both sides of the aisle to improve the tax provisions in this bill on behalf of small cannabis businesses and eventually pass it into law.”

The long-awaited CAOA Act was introduced after a bill sponsors circulated a discussion draft last year. NCIA and other advocacy organizations provided comprehensive feedback to the bill’s authors last year. Notable changes to the legislation include:

Increases the permissible THC by dry weight from the current 0.3 percent to 0.7 percent and refines the definition of “hemp,” and consequently “cannabis” by taking into account the total THC in a cannabis product, rather than just delta-9 THC.
Changes to the weight quantity to qualify a person for felony cannabis distribution or possession charge under the section from 10 pounds to 20 pounds.
Provides that a court shall automatically, after a sentencing review, expunge each federal cannabis conviction, vacate any remaining sentence, and resentence the defendant as if this law had been in place prior to the original sentencing.
Enables a noncitizen who has received a deportation order based on a cannabis-related offense to file a motion to reconsider that decision. If the motion to reconsider is filed within 30 days of the removal order, the motion may allow for cancellation of the deportation order.
Establishes a new 10-year intermediary lending pilot program in which SBA would make direct loans to eligible intermediaries that in turn make small business loans to startups, businesses owned by individuals adversely impacted by the War on Drugs, and socially and economically disadvantaged small businesses.
Removes the requirement to maintain a bond for any cannabis business that had less than $100,000 in excise tax liability in the prior year and reasonably expects excise tax liability in the current year to be below such amount.
Incorporates rules similar to rules currently applicable to permitted malt beverage producers and wholesalers.

Whitney Economics submitted a report outlining concerns with the tax plan, finding that the CAOA would impose an additional $1.1 billion in taxes on the already-struggling and cannabis industry.

“Introducing this far-reaching bill is a historic and important effort but we hope that the Senate moves quickly to pass the bi-partisan SAFE Banking Act which would provide tangible and immediate relief to small businesses and improve public safety by opening access to banking and financial services in our industry,” added Smith.

The SAFE Banking Act has been approved by the House of Representatives seven times and the Senate version of the bill (S. 910) enjoys the support of a bipartisan group of 43 co-sponsors but has yet to be brought to a vote in that chamber.

Laws to make cannabis legal for adults have passed in 19 states as well as the District of Columbia and the territories of CNMI and Guam, and 37 states as well as several territories have comprehensive medical cannabis laws. The substance is legal in some form in 47 states.

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The National Cannabis Industry Association (NCIA) is the largest cannabis trade association in the U.S. and the only organization broadly representing cannabis-related businesses at the national level. NCIA promotes the growth of a responsible and legitimate cannabis industry and works toward a favorable social, economic, and legal environment for that industry in the United States.

NCIA Announces New Evergreen Membership Tier for Policy-Oriented Business Leaders

WASHINGTON, D.C. – In order to amplify its efforts on Capitol Hill during this pivotal time, and to provide leading industry members a front row seat to the end of prohibition and the opportunity to play an active role in shaping the future of cannabis in the U.S., the National Cannabis Industry Association (NCIA) is announcing the all-new Evergreen membership tier, suited for industry leaders looking for a more hands-on experience in the effort to reform national cannabis policy.

In addition to all the networking and educational benefits NCIA is uniquely known to provide members, Evergreen-level supporters will also have more enhanced opportunities to engage in NCIA’s government relations and public policy work, including:

Private briefings and events with our lobbying team and key members of Congress
Input into all NCIA public policy positions
Exclusive meetings with congressional offices arranged by request
Invitation to participate in NCIA’s private Policy Summits with state regulators and policymakers
And many more opportunities to shape the future of national cannabis policy

“For over a decade, NCIA has fought for the best interests of all players in the cannabis business community and I’m proud that we continue to be the most broadly representative voice for the industry,” said Aaron Smith, co-founder and chief executive officer of NCIA. “In order to better serve the needs of the changing industry, we are pleased to announce the new Evergreen membership tier which provides an opportunity for industry leaders to make a significant investment in reform efforts to benefit all cannabis businesses while playing a greater role in crafting federal policy and regulations that will impact our industry for generations to come.”

“Influencing important new and inclusive cannabis policies is at the heart of the Evergreen membership,” said Seun Adedeji, chief executive officer and founder of Elev8 Cannabis, and NCIA board member. “What an exciting time to be one of its first members.”

In addition to the enhanced presence in our nation’s halls of power, Evergreen members receive direct ROI from a full slate of unparalleled membership benefits worth more than $75,000 in total value but dues are only $25,000 annually (monthly and quarterly payment plans are also available). Beyond adding to NCIA’s federal policy work, Evergreen memberships also help support efforts like the Social Equity Scholarship Program and other work to promote a fair and inclusive cannabis industry.

There is no better time for a business in the cannabis space – whether plant-touching or an ancillary service provider – to become a member of NCIA to help drive the changes the industry needs to truly thrive.

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Cannabis Industry and Policy Reform Advocates Urge Congress to Promote Equity and Address Racially Disparate Harms Caused by Prohibition

National Cannabis Industry Association joins more than 100 signatories in letter delivered to lawmakers today

WASHINGTON, D.C. – On Thursday, the National Cannabis Industry Association (NCIA) joined other trade organizations and policy groups, as well as dozens of cannabis businesses, in submitting a letter to members of Congress urging them to address the racially disparate harms caused by prohibition. The letter, which was signed by more than 100 businesses and organizations, calls for federal legislation to remove cannabis from the Controlled Substances Act, allow banks and other financial institutions to work with cannabis businesses and provide loans to people from marginalized communities who are trying to participate in the industry, and reform the federal tax code to remove the provision that imposes a discriminatory tax rate on cannabis businesses and creates a significant barrier for entry into the legal cannabis market.

The letter also calls for allocating federal funds for programs that would help provide restorative justice and promote equity in the cannabis industry. These include providing financial support for state programs that promote equity, allowing cannabis businesses to access Small Business Administration programs and benefits, expunging cannabis convictions and improving access to services that have been denied to people with cannabis-related criminal records, and reinvesting in the communities that have been most harmed by prohibition. The full text of the letter is available at http://www.DescheduleMarijuana.com.

“As representatives of the legal cannabis industry, we have a responsibility to help undo the harms caused by prohibition and ensure that people most impacted by failed federal policies have access to the opportunities being created every day in this market. We are pleased to join this distinguished group of business leaders and advocates in calling on Congress to incorporate these ideas into legislation,” said Aaron Smith, executive director of the National Cannabis Industry Association (NCIA). “Past Congresses have played a major role in marginalizing people of color through the war on cannabis, and it is the duty of current and future lawmakers to make up for this.”

“4Front is proud to stand with NCIA, the Minority Cannabis Business Association, and the other organizations that have signed this letter in support of federal cannabis policy reform that will not only help foster a more inclusive industry, but begin to address some of the harm done to communities disproportionately impacted by the War on Drugs,” said Kris Krane, co-founder and president of multi-state cannabis company 4Front Ventures and NCIA board member. “This is a cause that many of us have been pursuing for decades and it’s been tremendously gratifying to watch as the conversation has shifted from whether or not to legalize cannabis to how should we go about legalizing it.”

Last week, the House Judiciary Subcommittee on Crime, Terrorism, and Homeland Security held a historic hearing entitled “Marijuana Laws in America: Racial Justice and the Need for Reform” to begin a larger conversation in Congress about these problems and how to start fixing them.

In May, NCIA released a set of guidelines in conjunction with lawmakers and stakeholders called Increasing Equity in the Cannabis Industry: Six Achievable Goals for Policy Makers, which provides legislators with simple paths toward addressing many of the issues referenced in the letter.

The SAFE Banking Act, which would remedy the current cannabis banking situation discussed in the letter while increasing public safety and industry transparency, was approved by the House Financial Services Committee in March, and is expected to be voted on by the full House soon. The Senate Banking Committee will hold a hearing on a companion bill on Tuesday.

There are currently 47 states that allow cannabis in some form. Thirty-three states and several territories have comprehensive medical cannabis laws, and 11 states as well as the District of Columbia and the territories of Guam and CNMI have made cannabis legal for adults.

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Congressional Subcommittee Holds Hearing on Providing Safe Harbor for Banks to Work with Legal Cannabis Businesses

House Financial Services Subcommittee considers legislation that would make it easier for cannabis businesses to access banking services if they are in compliance with state law

WASHINGTON, D.C. – Members of the House Financial Services Subcommittee on Financial Institutions and Consumer Protection heard testimony Wednesday from representatives of the financial sector, the cannabis industry, law enforcement, and the treasurer of California in support of legislation that would make it easier for banks to work with legal cannabis businesses without fear of federal prosecution. The committee discussed a draft of the Secure and Fair Enforcement (SAFE) Banking Act, which is expected to be introduced in the House of Representatives this month by Rep. Ed Perlmutter (D-CO) and Rep. Denny Heck (D-WA). The bill would address the public safety and transparency issues that are created by current banking restrictions which discourage most financial institutions from being able to have cannabis businesses as clients.

“Congress has an opportunity to make a simple policy change that will greatly benefit communities and small businesses by approving cannabis banking reform,” said Aaron Smith, executive director of the National Cannabis Industry Association (NCIA). “Representatives Perlmutter and Heck should be commended for pushing for this hearing so that this issue can get the attention it deserves and we can move toward a sensible policy that will increase public safety and transparency in this burgeoning industry.”

Under current restrictions, most financial institutions are unwilling to work with cannabis businesses due to the threat of federal prosecution. While cannabis is legal in some form in 47 states, it is still illegal under federal law, and banks that work with them could be charged with crimes including money laundering.

Dealing solely in cash also creates difficulties for state regulators and tax collectors, from logistical problems to limited transparency. Most crucially, while research shows that cannabis businesses are associated with decreases in crime where they are located, the fact that they are mostly forced to operate on a cash-only basis makes them attractive targets for crime themselves, putting employees, customers, and the general public at risk.

“We have the power in this committee to prevent murders and robberies, here today,” said Rep. Perlmutter during the hearing.

Rep. Perlmutter and Rep. Heck are expected to introduce an updated version of a bill that they introduced last year, the SAFE Banking Act, that would resolve this issue by protecting banks and creating a safe harbor for them to work with regulated cannabis businesses. At the end of the last congressional session, the bill had garnered nearly 100 cosponsors.

NCIA submitted written testimony for this hearing, along with dozens of testimonials from cannabis business owners and employees about their experiences with the currently problematic financial services environment.

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Legal Marijuana Sales Begin in Canada – U.S. Industry Org Urges Congress to Follow

Canada Cannabis Legalization Takes Effect Today – National Cannabis Industry Association Urges Congress to End Prohibition or Fall Behind

Nation’s largest marijuana trade organization warns U.S. will be left behind in global market, joins Rep. Lou Correa and other members of Congress in call to end border policy that discriminates against cannabis professionals

WASHINGTON, D.C. – As Canadian laws making marijuana legal for adults went into effect and licensed retail stores opened throughout the country on Wednesday, the U.S. cannabis industry is calling on federal lawmakers to do the same to avoid falling behind in the burgeoning global cannabis market. The National Cannabis Industry Association (NCIA), the largest trade association for legal cannabis businesses in the U.S., is urging Congress to pass comprehensive marijuana policy reforms that would allow states to determine their own marijuana laws, provide safe harbor to financial institutions that want to work with cannabis businesses, address unfair taxation, promote social equity in the industry, and permit free trade. NCIA is also asking U.S. officials to follow the Canadian government’s lead in pardoning people with marijuana convictions.

“The evidence is clear that regulating marijuana works in the states that have done so, and we are about to see that on a national scale in our neighbor to the North,” said Aaron Smith, executive director of the National Cannabis Industry Association (NCIA). “Congress needs to act now to level the playing field. Every moment they delay hurts American businesses and communities, and unnecessarily steers consumers to the criminal market.”

NCIA is also supporting efforts led by Rep. Lou Correa (D-CA) to change current Customs & Border Protection policy which prevents Canadians who are involved in the legal cannabis industry from traveling in the U.S. on business, even to states where cannabis is legal. Rep. Correa announced on Wednesday that he is gaining support from bipartisan members of Congress requesting that the Department of Homeland Security end this policy immediately.

“This sort of discrimination against the cannabis industry is outrageous,” continued Smith. “If people in any other legal industry were treated like this, or if it were Canada denying entry to U.S. citizens based on their professions, there would be national outcry.”

NCIA’s report titled “How the U.S. is Falling Behind in the Regulated Global Cannabis Market,” explains how a lack of federal regulation and the inability to expand beyond state borders means U.S. cannabis companies are constrained in their ability to grow and are at a competitive disadvantage to cannabis companies in other countries, with Canada and Israel being the most prominent examples.

The launch of Canada’s legal marijuana program comes as residents of four states prepare to vote on cannabis ballot initiatives in November, and as the issue plays an increasingly important role in politics. Michigan and North Dakota are poised to become the next states to make marijuana legal and regulated for adults, and medical marijuana initiatives will be on the ballots in Missouri and Utah.

National Cannabis Industry Association Board of Directors Selects Executive Team

Newly-elected board members join association Board and appoint officers for 2018-19 term

WASHINGTON, D.C. – The National Cannabis Industry Association (NCIA), the country’s largest cannabis trade association and industry advocacy organization, officially seated its newly-elected Board of Directors following the association’s member-driven board election.

The election, which concluded in June, brought on three new board members. Mark Passerini is the co-founder of Om of Medicine, a Michigan medical cannabis dispensary that has the distinction of being the only dispensary in the country to partner with a major university via the University of Michigan, and the first board member elected from that state. Michael Steinmetz is the CEO and founder of Flow Kana, one of California’s most innovative companies dedicated to sustainability and empowering small craft cannabis farmers. Taylor West is the former deputy director of NCIA and current senior communications director for COHNNABIS, a full-service brand, marketing, digital, and public relations agency dedicated to the unique needs of the cannabis industry.

A full list of Board members and their bios is available here.

NCIA is also announcing the new Board of Directors Executive Team that will help guide the organization in its continuing federal lobbying efforts and development of valuable resources for the cannabis business community. The Chair is AC Braddock, CEO of cannabis extraction technology company Eden Labs and a recognized thought leader in the cannabis industry, as well as the supporting founder of several cannabis women’s groups. The Vice-chair is Khurshid Khoja, principal of Greenbridge Corporate Counsel, a boutique business law firm founded in 2012, which represents clientele in California, Washington, Oregon and Hawaii from across numerous sectors in the legal cannabis industry, on regulatory, start‐up, corporate, intellectual property, finance, and other commercial and transactional matters. The Treasurer is Kris Krane, the founder and managing partner at 4Front Ventures, a cannabis consulting firm that is dedicated to ensuring the highest standards of operations and compliance in the industry. The Secretary and General Counsel to the Board is Henry Wykowski, a San Francisco-based trial attorney representing numerous cannabis dispensaries throughout California in tax matters, including a landmark case which positively impacted cannabis businesses throughout the state.

“My first experience lobbying in D.C. was in 2014 with NCIA and it restored my faith in the power of individual and collective voices in our political system,” said AC Braddock. “This organization represents the very fiber of entrepreneurship and socially responsible small businesses in this country and what we can do when united. I am so looking forward to what we will accomplish in the next few years and beyond.”

“This is likely to be a momentous year for cannabis policy reform at the federal level, with NCIA’s years of advocacy in the Capitol bearing visible fruit in the form of increased congressional and executive branch support on various pieces of critical legislation,” added Khurshid Khoja. “It is a pleasure and an honor to help lead an organization that is the tip of the cannabis industry’s spear in the effort to win federal legalization.”

On top of being the nation’s most established organization lobbying for fair taxation and banking access for the cannabis industry and an end to cannabis prohibition, NCIA is dedicated to ensuring equity in the industry through policy and culture and has established an events scholarship program to promote those values. In addition, the organization will continue producing resources that will be useful for the cannabis industry and policymakers. In conjunction with its members and industry experts, NCIA released publications last week offering recommendations for cannabis testing policy and providing guidance to cannabis businesses for dealing with crisis communications.

“We are proud of our members for getting involved and electing effective and passionate industry leaders to our Board,” said Aaron Smith, executive director of the National Cannabis Industry Association. “The next year is going to be both exciting and challenging in federal cannabis policy and industry development, and we are lucky to have such dedicated individuals helping us change laws and provide value to our members.”

National Cannabis Industry Association Responds to FDA Statement on Cannabidiol (CBD) Regulation