FundCanna Partners with National Cannabis Industry Association to Fund Memberships
FundCanna Partners with National Cannabis Industry Association to Fund Memberships
Leading cannabis lender will be funding the membership fees of their next 100 clients
SAN DIEGO, Nov. 14, 2023 — FundCanna, the leading provider of capital to businesses throughout the cannabis sector, announces today a partnership with the National Cannabis Industry Association (NCIA), the largest cannabis trade organization, to cover the NCIA membership costs for their next 100 customers, a $100,000 value. The company has also elevated its own membership to the Evergreen level, a significant investment in the trade organization.
This commitment from FundCanna to NCIA will support the work needed to advance cannabis policy, reduce the heavy tax burden on cannabis companies and ensure that the industry’s voice is heard at the federal, state and municipal levels.
“Our partnership with the NCIA is a win for both cannabis businesses and the industry as a whole,” said Adam Stettner, Founder and CEO of FundCanna. “Through FundCanna, cannabis companies get the access to capital that they need to grow and operate their businesses and now they will also receive a subsidized membership to the NCIA which both amplifies their voices and provides them a seat at the table for some of the most important discussions and decisions that are facing our industry. We believe this commitment to the cannabis industry, our clients and NCIA will lead to more positive momentum for cannabis policy reform across the country.”
An unprecedented partnership for NCIA, FundCanna is the first company to back the cannabis trade group at this level. By funding memberships for their clients to NCIA, FundCanna hopes to enable more cannabis businesses to have a seat at the table for important policy discussions with the proper stakeholders.
“FundCanna has doubled down on its commitment to the cannabis industry,” said Aaron Smith, CEO of NCIA. “With pending cannabis legislation and more states passing cannabis legalization measures every year, NCIA’s work is more important than ever, and we welcome FundCanna and its clients to support and advocate for the cannabis policy reform NCIA is championing. This financial commitment and the additional members and their voices will make a significant difference in our progress toward advancing many of the initiatives that matter most to cannabis businesses nationwide. These include SAFER Banking, ensuring federal rescheduling doesn’t upend the industry, and much more including our efforts to eventually make cannabis legal from coast to coast.”
This program applies to the first 100 cannabis companies that fund with FundCanna as a new client beginning Nov. 15th, 2023. Membership will be provided following the successful application, underwriting and funding through FundCanna’s process. Cannabis companies interested in learning more about this partnership can visit fundcanna.com/ncia.
About FundCanna
FundCanna is the leading source of debt capital to the cannabis industry. The funding products FundCanna offers are customizable, flexible, renewable and reliable. The financing offered is designed exclusively for Cannabis operations and the ancillary companies that support the industry.
For more than 20 years, their team of financial experts has provided nearly $20 billion in funding to underserved businesses and individuals across the country. Adam Stettner, founder and CEO, has successfully founded and run finance companies for the past 20 plus years, earning numerous national awards and recognition notably including EY’s Entrepreneur of the Year and 7 showings on the Inc. 500/5000.
Stettner and his team focused their efforts exclusively on financing licensed Cannabis operators and ancillary providers in 2021. For more information about cannabis financing, visit FundCanna.com.
About NCIA
The National Cannabis Industry Association (NCIA) is the largest cannabis trade association in the U.S. and the only organization representing independent cannabis-related 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.
Media Contact:
Anne Donohoe
KCSA Strategic Communications
fundcanna@kcsa.com
Senate Committee Approves Historic Cannabis Banking Legislation
FOR IMMEDIATE RELEASE
Tuesday, September 27, 2023
CONTACT:
Aaron Smith, CEO and Co-Founder
(888) 683-5650, Aaron@TheCannabisIndustry.org
Michelle Rutter Friberg, Director of Government Relations
(202) 599-9743, Michelle@TheCannabisIndustry.org
Senate Committee Approves Historic Cannabis Banking Legislation
Cannabis industry advocates applaud move that sets the stage for SAFER Banking Act to receive Senate floor vote
WASHINGTON, D.C. – Today the Senate Banking Committee approved the Safe and Secure Enforcement and Regulation (SAFER) Banking Act, clearing the way for a floor vote. The legislation, introduced by Sens. Jeff Merkley (D-OR) and Steve Daines (R-MT), would allow financial institutions to do business with the legal cannabis industry without fear of running afoul of federal banking regulations. The legislation cleared the committee with a 14-to-9 vote.
The SAFER Banking Act would afford the cannabis industry better access to financial services that are currently unavailable or not reliably accessible, including depository services, electronic payments, and lending. The bi-partisan legislation has passed in the House seven times in previous congressional sessions but has yet to receive a vote in the Senate. Today’s committee vote clears a path for the bill to finally make its way to the Senate floor for a vote.
During the markup session, multiple amendments were offered. One, from Senator Warnock (D-GA) would have created a 5-year sunset for the legislation unless a report from the Treasury Department certified that it had decreased the racial wealth gap and ameliorated other negative economic impacts of the war on drugs. This amendment ultimately failed. Additionally, amendments from Senators Hagerty (R-TN), Rounds (R-SD), Crapo (R-ID) were also offered but were ruled out of order, withdrawn, and failed, respectively.
Advocates are hopeful the Senate will approve the SAFER Banking Act given the strong bipartisan support. 76 Senators represent a state that regulates the sale of cannabis for medical or adult-use — including 28 Republicans.
“The committee’s approval of the SAFER Banking Act which gives hope to thousands of compliant, tax-paying businesses desperately trying to access the basic financial services other businesses take for granted,” said National Cannabis Industry Association CEO, Aaron Smith. “This uniquely bipartisan legislation has the potential to save lives and help small businesses; it’s time for Congress to get it to the president’s desk without further delay.”
Last month, the Department of Health and Human Services and the Food and Drug Administration made an official recommendation to move cannabis from Schedule I to Schedule III status in the federal Controlled Substances Act but that change would not affect the current banking situation for the industry.
The SAFER Banking Act is endorsed by the National Association of Attorneys General, National Association of State Treasurers, the American Bankers Association, Credit Union National Association, Independent Community Bankers of America, the NAACP, Americans for Prosperity, United Food and Commercial Workers Union, and a bipartisan group of 20 state governors.
Laws to make cannabis legal for adults have passed in 23 states as well as the District of Columbia and the territories of CNMI and Guam, and 38 states as well as several territories have comprehensive medical cannabis laws. Three in four Americans live in a state where cannabis is legal in some form.
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The National Cannabis Industry Association (NCIA) is the largest cannabis trade association in the U.S. and the only organization representing small and independent cannabis-related 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.
Senate Committee to Markup Cannabis Banking Legislation Tomorrow
FOR IMMEDIATE RELEASE
Tuesday, September 26, 2023
CONTACT:
Aaron Smith, CEO and Co-Founder
(888) 683-5650, Aaron@TheCannabisIndustry.org
Michelle Rutter Friberg, Director of Government Relations
(202) 599-9743, Michelle@TheCannabisIndustry.org
Senate Committee to Markup Cannabis Banking Legislation Tomorrow
Industry leaders and advocates stress urgent need for bi-partisan SAFER Banking Act
WASHINGTON, D.C. – The Senate Banking Committee will be marking up the Safe and Secure Enforcement and Regulation (SAFER) Banking Act during its executive session tomorrow at 9:30 a.m. EST. The legislation, introduced by Sens. Jeff Merkley (D-OR) and Steve Daines (R-MT), would allow financial institutions to do business with the legal cannabis industry without fear of running afoul of federal banking regulations.
The legislation, S. 2860, enjoys broad bipartisan support and has passed the House seven times in previous congressional sessions but has never been taken up for a vote in the Senate. Advocates are hopeful that the Banking Committee will release the bill to a floor vote tomorrow.
The SAFER Banking Act (formerly known as “SAFE Banking Act”) is narrowly-crafted legislation that would allow the cannabis industry to access financial services currently not available or not reliably accessible without steep bank fees. Current banking regulations force cannabis businesses to operate in a very cash-heavy environment as they are unable to process credit cards and sometimes even unable to access depository services. The situation has led to numerous robberies and violent crimes targeting cannabis retail facilities and industry employees.
The bill would also open the door to greater business lending in the industry, providing access to capital that advocates say is sorely needed by small and independently-owned cannabis businesses.
“The vast majority of Americans now live in a state that is effectively regulating legal medical or adult-use cannabis sales but federal banking regulations are exposing millions to an unnecessary and completely avoidable risk of violent crime,” said National Cannabis Industry Association CEO, Aaron Smith. “On behalf of the tens of thousands of small businesses struggling under these outdated federal banking regulations, we commend Chairman Brown and the committee for taking up this important issue and urge them to move the SAFER Banking Act to a full Senate vote without further delay.”
Last month, the Department of Health and Human Services and the Food and Drug Administration made an official recommendation to move cannabis from Schedule I to Schedule III status in the federal Controlled Substances Act but that change would not affect the current banking situation for the industry.
The SAFER Banking Act is endorsed by the National Conference of State Legislators, National Association of Attorneys General, National Association of State Treasurers, the American Bankers Association, Credit Union National Association, Independent Community Bankers of America, the NAACP, Americans for Prosperity, United Food and Commercial Workers Union, and a bipartisan group of 20 state governors.
Laws to make cannabis legal for adults have passed in 23 states as well as the District of Columbia and the territories of CNMI and Guam, and 38 states as well as several territories have comprehensive medical cannabis laws. Three in four Americans live in a state where cannabis is legal in some form.
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The National Cannabis Industry Association (NCIA) is the largest cannabis trade association in the U.S. and the only national organization representing small and independent cannabis-related businesses. 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.
National Cannabis Industry Association Responds to Health & Human Services Recommendation on Marijuana Scheduling
FOR IMMEDIATE RELEASE
Wednesday, August 30, 2023
CONTACT:
Aaron Smith, CEO and Cofounder
(888) 683-5650, Aaron@TheCannabisIndustry.org
National Cannabis Industry Association Responds to Health & Human Services Recommendation on Marijuana Scheduling
WASHINGTON, D.C. – It’s been reported today that the U.S. Department of Health and Human Services (HHS) issued an official recommendation to the Drug Enforcement Administration calling for marijuana to be moved from Schedule I to Schedule III status in the federal Controlled Substances Act.
Advocates acknowledged this historic move in the long fight to end marijuana prohibition but point out the rescheduling would not resolve many of the issues plaguing state cannabis markets.
“Moving cannabis to schedule III could have some limited benefit but does nothing to align federal law with the 38 U.S. states which have already effectively regulated cannabis for medical or adult use. The only way to fully resolve the myriad of issues stemming from the federal conflict with state law is to remove cannabis from the Controlled Substances Act and regulate the product in a manner similar to alcohol.” said National Cannabis Industry Association CEO Aaron Smith.
“The vast majority of Americans live in states with laws that depart from federal law on this issue and where thousands of regulated Main Street businesses are serving the legal cannabis market safely and responsibly. It’s long past time for Congress to truly harmonize federal policy with those states.”
Marijuana is currently classified as a Schedule I substance, a status reserved for drugs with high potential for abuse and no medical value. This nonbinding recommendation acknowledges decades of scientific data suggesting Schedule I status is inappropriate.
Laws to make cannabis legal for adults have passed in 23 states as well as the District of Columbia and the territories of CNMI and Guam, and 38 states as well as several territories have comprehensive medical cannabis laws. Three in four Americans live in a state where cannabis is legal in some form.
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The National Cannabis Industry Association (NCIA) is the largest cannabis trade association in the U.S. and the only organization focused on representing small and independent cannabis-related 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.
Senate Committee Holds Cannabis Banking Hearing as Industry Advocates Prepare for Annual Fly-in Event
FOR IMMEDIATE RELEASE
Thursday, May 11, 2023
CONTACT:
Aaron Smith, CEO and Cofounder
(888) 683-5650, Aaron@TheCannabisIndustry.org
Bethany Moore, Communications Director
(240) 678-2654, Communications@TheCannabisIndustry.org
Senate Committee Holds Cannabis Banking Hearing as Industry Advocates Prepare for Annual Fly-in Event
Over 100 Cannabis Business Leaders Will Join Lawmakers Calling for Congressional Action on the SAFE Banking Act and Other Priorities Next Week
WASHINGTON, D.C. – The Senate Committee on Banking, Housing, and Urban Affairs conducted an oversight hearing today to examine the challenges federal banking policy poses to cannabis businesses, their employees, and the states that regulate them. Witnesses included Sen. Jeff Merkley (D-OR) and Sen. Steve Daines (R-MT) who provided testimony outlining the difficulties their states are facing due to a lack of access to banking in the cannabis industry.
Senators Merkley and Daines recently introduced the Secure and Fair Enforcement (SAFE) Banking Act, along with 38 original cosponsors. The legislation would amend federal statute to allow banks and financial institutions to do business with the cannabis industry without fear of running afoul of federal laws intended to keep illegal drug transactions out of the banking system. The House has passed its version of the SAFE Banking Act with wide bipartisan margins seven times during previous congresses.
Advocates are pleased the Senate is taking up this issue and are urging Senate leadership to schedule a committee hearing and markup for the SAFE Banking Act (S.1323) as soon as possible.
In his written testimony to the committee, National Cannabis Industry Association (NCIA) co-founder and chief executive officer Aaron Smith underscored the need for immediate congressional action on the cannabis banking issue.
“Comprehensive reforms that would align federal law with the growing number of states regulating cannabis and end the harms associated with decades of failed prohibition are sorely needed. However, the legislative process to achieve those reforms is likely to take several more years and the crisis states are facing due to outdated banking policy demands urgent action,” wrote Smith. “The Senate has a unique opportunity to solve the dangerous and unnecessary crisis by passing the Secure and Fair Enforcement (SAFE) Banking Act.”
The hearing serves as a significant precursor to the NCIA’s 11th Annual Lobby Days, taking place in Washington, D.C. next week. Cannabis industry professionals and advocates from across the nation will travel to the capital to discuss key issues with lawmakers, including the banking challenges discussed in the oversight hearing.
The association’s advocacy fly-in will take place May 17th and 18th and will include a reception with members of Congress and VIPs hosted by leading national law and public affairs firm Michael Best Strategies on the evening of the 17th as well as a morning briefing for Senate staff and members of the media on the cannabis banking issue on the 18th.
Over the course of the event, over 150 meetings will be held with Congressional representatives to discuss the negative impact that outdated federal prohibition has on the legal cannabis industry and to advocate for the passage of the SAFE Banking Act.
Industry advocates and lawmakers will be available for comment during the Senate briefing Thursday.
WHAT: Senate Staff Briefing on the SAFE Banking Act & NCIA’s 11th Annual Cannabis Industry Lobby Days
WHEN: Thursday, May 18, 2023, 9:00 AM Eastern
WHERE: 325 Russell Senate Office Building, Capitol Hill, Washington, D.C.
WHO: National Cannabis Industry Association members and leadership and members of Congress TBA
Members of the media may request a press credential for the briefing by contacting Bethany Moore at media@thecannabisindustry.org.
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The National Cannabis Industry Association (NCIA) is the largest cannabis trade association in the U.S. and the only organization focused on representing small and independent cannabis-related 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.
SAFE Banking Act Reintroduced in the U.S House and Senate
FOR IMMEDIATE RELEASE
Wednesday, April 26, 2023
CONTACT:
Aaron Smith, CEO and Cofounder
(888) 683-5650, Aaron@TheCannabisIndustry.org
Bethany Moore, Communications Director
(240) 678-2654, Communications@TheCannabisIndustry.org
SAFE Banking Act Reintroduced in the U.S House and Senate
Advocates call for passage of bipartisan SAFE Banking Act to open the financial system to licensed cannabis businesses
WASHINGTON, D.C. – Today, a bipartisan group of lawmakers reintroduced the Secure and Fair Enforcement (SAFE) Banking Act in the U.S. Senate and House of Representatives. This bicameral legislation, which was introduced by Sen. Jeff Merkley (D-OR), Sen. Steve Daines (R-MT), Rep. Dave Joyce (R-OH), and Rep. Earl Blumenauer (D-OR), would protect financial institutions from federal prosecution for providing services to cannabis businesses operating in compliance with state laws.
Federal banking regulations currently do not recognize the legal cannabis industry that exists in dozens of U.S. states, creating a significant barrier for licensed businesses accessing banking and financial services. This creates transparency issues for the industry and government officials tasked with regulating it and has led to cannabis businesses being increasingly targeted for robbery with sometimes fatal results.
Providing a safe harbor for financial service providers to work with cannabis businesses would also allow for traditional lending, which is currently limited throughout the industry. This lack of access to capital most adversely affects small and minority-owned businesses.
Previous versions of the SAFE Banking Act have been approved by the House with wide margins and significant bipartisan support seven times over the past two congressional sessions, however, the bill has so far stalled in the Senate. Advocates are hopeful that the legislation will receive a hearing and an affirmative vote in both chambers and signed into law this year, as more states continue to enact laws licensing cannabis sales.
There are currently 322 House members and 76 senators representing states with comprehensive medical or adult-use cannabis laws and whose constituents would directly benefit from passage of the SAFE Banking Act.
“With a supermajority of Congress now representing a state with licensed cannabis sales, enacting this sensible and necessary legislation should be among the least controversial issues before the Senate today,” said National Cannabis Industry Association co-founder and CEO Aaron Smith. “This bill is a common sense step toward improving public safety and transparency while also opening much-needed access to capital to struggling small businesses throughout the nation.”
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.
Over 100 National Cannabis Industry Association members are expected to travel to Washington, D.C. to lobby for the passage of the SAFE Banking Act and other industry priorities at the organization’s 11th Annual Cannabis Industry Lobby Days May 16-18.
Laws to make cannabis legal for adults have passed in 22 states as well as the District of Columbia and the territories of CNMI and Guam, and 38 states, as well as several territories, have comprehensive medical cannabis laws. Nearly three in four Americans live in a state where cannabis is legal in some form.
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The National Cannabis Industry Association (NCIA) is the largest cannabis trade association in the U.S. and the only organization focused on representing small and independent cannabis-related 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.
Small Business Tax Equity Act Introduced in House of Representatives to Provide Tax Parity for Cannabis Businesses
FOR IMMEDIATE RELEASE
Monday, April 17, 2023
CONTACT:
Aaron Smith, CEO and Cofounder
(888) 683-5650, Aaron@TheCannabisIndustry.org
Bethany Moore, Communications Director
(240) 678-2654, Communications@TheCannabisIndustry.org
Small Business Tax Equity Act Introduced in House of Representatives to Provide Tax Parity for Cannabis Businesses
Bipartisan legislation would modernize tax code by treating state-licensed cannabis businesses like other legal entities
WASHINGTON, D.C. – Today, Rep. Earl Blumenauer (D-OR) introduced the Small Business Tax Equity Act which would allow state-licensed cannabis businesses to deduct ordinary and necessary business expenses from federal taxable income.
Deductions for expenses associated with activities defined by federal law as “drug trafficking” are currently prohibited under a little-known section of the tax code section 280E. The provision was enacted by Congress with the intent of penalizing criminal drug dealers in 1982, decades before states began licensing the sales of cannabis for medical and adult-use.
Advocates point out that current enforcement of 280E appears to be almost exclusively targeted at legal cannabis businesses – entities that were never conceived of when the provision was enacted. 280E prevents legal cannabis businesses from deducting expenses such as payroll, rent, security, and compliance costs. Some businesses are paying an effective tax rate of 70% or more as a result of 280E.
“The unfair application of the outdated 280E provision on state-licensed cannabis businesses is preventing our industry from reaching its full economic potential and our ability to successfully replace criminal markets in accordance with the will of the voters and state legislators that have implemented modern state marijuana programs across the country,” said National Cannabis Industry Association CEO Aaron Smith. “We commend Congressman Blumenauer and the bill’s original co-sponsors for leading this narrowly-crafted, sensible legislation that would resolve this unforeseen consequence and bring our tax code into the 21st century.”
“State-legal cannabis businesses are denied equal treatment under 280E. They cannot fully deduct the cost of doing business which means they pay two or three times as much as a similar non-cannabis business,” said Congressman Blumenauer. “This grotesquely unfair treatment incentivizes people to cut corners. If Congress wants to get serious about supporting small businesses and ending the illicit cannabis market, it is commonsense that we allow legal cannabis operations to deduct business expenses, just like any other industry.”
Rep. Blumenauer is joined by Reps. Nancy Mace (R-SC) and Barbara Lee (D-CA) as original cosponsors.
“The Small Business Tax Equity Act is critical legislation that aims to repeal the oppressive taxation of marijuana businesses under IRC 280E, which unfairly denies them ordinary business deductions and credits.” Said Congresswoman Mace, “State-licensed cannabis companies deserve fair treatment and the ability to operate on a level playing field. The American people agree, and it is time our laws reflect it.”
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.
Over 100 National Cannabis Industry Association members are expected to travel to Washington, D.C. to lobby for the passage of the Small Business Tax Equity Act and other industry priorities at the organization’s 11th Annual Cannabis Industry Lobby Days May 16-18.
Laws to make cannabis legal for adults have passed in 21 states as well as the District of Columbia and the territories of CNMI and Guam, and 38 states, as well as several territories, have comprehensive medical cannabis laws. Nearly three in four Americans live in a state where cannabis is legal in some form.
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The National Cannabis Industry Association (NCIA) is the largest cannabis trade association in the U.S. and the only organization focused on representing small and independent cannabis-related 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.
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.
U.S. House Approves MORE Act to End Federal Cannabis Prohibition for Second Time
Bill would remove cannabis from list of controlled substances, expunge federal convictions, provide resources to small businesses and impacted communities
WASHINGTON, D.C. – The Marijuana Opportunity, Reinvestment, and Expungement (MORE) Act, which would remove cannabis from the federal Controlled Substances Act and attempt to undo the damage caused by racially and economically disproportionate enforcement of prohibition, was approved by the House of Representatives today. An earlier version of the bill was passed in December 2020 in a largely party-line vote, becoming the first comprehensive cannabis policy reform legislation to receive a floor vote or be approved by either chamber of Congress.
Revisions from last session include the removal of a provision that would have allowed federal regulators to deny cannabis business licenses to applicants who have prior felony convictions. Other changes from the introduced text this session include revisions to property requirements, allowing operators to secure those locations after receiving a federal license.
A number of amendments were offered at a Rules Committee hearing to advance the bill, however, only three were ruled in order. The first passed on a roll call vote and was introduced by Rep. Josh Gottheimer (D-NJ), authorizes $10M for the National Highway Traffic Safety Administration to conduct a study on technologies and methods that law enforcement may use to determine whether a driver is impaired by marijuana.
Another amendment, introduced by Rep. Conor Lamb (D-PA). This amendment directs the National Institute for Occupational Safety and Health (NIOSH) to conduct a study on the impact of legalization to the workplace, using states that have legalized recreational use of cannabis as a guide, and requires NIOSH to develop best practices for employers as companies transition their policies related to cannabis, prioritizing employers engaged in federal infrastructure projects, transportation, public safety, and national security. Additionally, it directs the Department of Education to conduct a study on the impact of legalization to schools and school aged children, using states that have legalized recreational use of cannabis as a guide, and requires the Department of Education to develop best practices for educators and administrators to protect children from any negative impacts.” It passed on a roll call vote.
Another amendment, which failed on a roll call vote was offered by Rep. Jamie Raskin (D-MD) would have required federal agencies to review security clearance denials going back to 1971 and retroactively make it so cannabis could not be used “as a reason to deny or rescind a security clearance.”
While there is currently no companion bill in the Senate, Majority Leader Schumer (D-NY) along with Senators Booker (D-NJ) and Wyden (D-OR) are expected to introduce a comprehensive cannabis reform bill in the next month.
“With voter support for legal cannabis at an all-time high and more and more states moving away from prohibition, we commend the House for once again taking this step to modernize our federal marijuana policies,” stated NCIA Chief Executive Officer and co-founder Aaron Smith. “Now is the time for the Senate to act on sensible reform legislation so that we can finally end the failure of prohibition and foster a well regulated marketplace for cannabis.”
Laws to make cannabis legal for adults have passed in 18 states as well as the District of Columbia and the territories of CNMI and Guam, and 36 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.
House Judiciary Committee Approves Bill to End Federal Cannabis Prohibition
MORE Act – approved in House floor vote last year – would remove cannabis from schedule of controlled substances, expunge convictions, and help repair harms caused by outdated policies
WASHINGTON, D.C. – On Thursday, the House Judiciary Committee approved a bill that would remove cannabis from the schedule of controlled substances and end the state-federal conflict that currently exists in the majority of states which have regulated cannabis in some fashion. The Marijuana Opportunity, Reinvestment, and Expungement (MORE) Act, or H.R. 3617, was reintroduced by House Judiciary Chairman Jerrold Nadler (D-NY) and has 74 cosponsors.
In addition to removing cannabis from the Controlled Substances Act, the bill would expunge non-violent federal cannabis convictions and support state efforts to do the same, provide opportunities and resources for cannabis businesses owned by women and people of color, create reinvestment programs for communities that have been adversely impacted by prohibition, improve immigration laws related to cannabis, and allow doctors in the Veterans Affairs system to recommend medical cannabis to their patients.
The MORE Act was originally approved in a full House vote in December 2020, becoming the first bill to end federal prohibition to pass in either chamber. A companion bill was introduced in the Senate by now-Vice President Kamala Harris, but did not receive a hearing before the end of the session.
The current legislation must be considered or waived by several more committees of jurisdiction before it can be brought up for another floor vote.
“We are thankful that the House continues to pursue sensible cannabis policy reforms and is once again moving on this important bill,” said Aaron Smith, co-founder and chief executive officer of the National Cannabis Industry Association (NCIA). “While the MORE Act lacks the robust regulatory structure we would like to see in a comprehensive descheduling bill, it represents the increasing support for ending prohibition among both lawmakers and the American public, not to mention the current policies of dozens of states around the country.”
“This bill would be a huge improvement on the status quo and is helping to further the conversation about what effective federal cannabis policy looks like,” Smith continued. “Removing cannabis from the Controlled Substances Act is absolutely necessary, and the MORE Act would be a big step in the right direction for restorative justice and making sure that small businesses and members of marginalized communities who have been disproportionately harmed by prohibition can benefit from the opportunities created by regulated cannabis markets.”
NCIA originally released recommendations for a federal regulatory framework in October 2019 and has been working with lawmakers to include them in comprehensive cannabis policy reform bills. Many of these ideas were incorporated in the draft language of the Cannabis Administration and Opportunity Act, which was released in July by Senate Majority Leader Chuck Schumer (D-NY) and Senators Cory Booker (D-NJ) and Ron Wyden (D-OR). NCIA provided significant feedback developed with members and stakeholders from across the cannabis industry and will continue to work with sponsors to pass legislation that undoes as much of the damage caused by prohibition as possible, protects small businesses, and ensures that a well-regulated cannabis industry can reach its full potential in the United States.
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 36 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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NCIA Submits Comments on Comprehensive Cannabis Policy Reform Proposal
Critical analysis and recommendations from stakeholders developed in response to draft language of the Cannabis Administration and Opportunity Act led by Senate Majority Leader
WASHINGTON, D.C. – In response to a call for input on the draft language for a bill that would make cannabis legal and regulated at the federal level, the National Cannabis Industry Association (NCIA) has submitted a detailed analysis and recommended improvements on behalf of the legal cannabis industry. The Cannabis Administration and Opportunity Act (CAOA), submitted in July by Senate Majority Leader Charles Schumer (D-NY) and Senators Cory Booker (D-NJ) and Ron Wyden (D-OR), would remove cannabis from the schedule of controlled substances, create a regulatory structure and federal guidelines for cannabis products and state-legal markets, and is intended to support restorative justice for the people and communities that have been disparately hurt by prohibition while ensuring fair opportunities in legal cannabis markets for small businesses and marginalized communities.
The full comments are available here and an executive summary can be viewed here.
As the nation’s oldest, largest, and most broadly representative cannabis trade association, NCIA was able to draw on the vast experience of its members to create recommendations that will help to further promote the ideas that should be included in comprehensive federal policy reform, such as descheduling, support for small businesses, social equity and restorative justice, sensible federal guidelines, fair taxation, and research. These comments were developed with significant feedback from NCIA’s Policy Council, industry expert committees, social equity scholarship recipients, and other member stakeholders from every sector of the industry.
“Ending nearly a century of disastrous prohibition policies is a monumental effort and one which should not be taken lightly,” said Aaron Smith, co-founder and chief executive officer of NCIA. “We appreciate Senate leadership for taking a big step toward that goal which a significant majority of Americans support. There is a lot of work left to be done and it is vital to include those most impacted by both prohibition and the proposed legislation in this process.”
The CAOA presents a thoughtful foundation for comprehensive cannabis policy reform that clearly illustrates the authors’ engagement with stakeholders during the drafting process. Many of the ideas expressed in the draft legislation hew closely to NCIA’s recommendations for an effective federal regulatory framework. The Senate supporters demonstrated their commitment to continued discussion and revision by requesting public comments on this language immediately after it was initially released.
“It’s been gratifying to see NCIA’s’s previous regulatory proposals reflected in the four corners of the CAOA,” said Khurshid Khoja, chair of NCIA’s Board, co-chair of its Policy Council, and founder and CEO of Greenbridge Corporate Counsel PC. “I’m even more pleased that the authors’ offices have given us the opportunity to further inform and shape this landmark bill with robust industry input collected from a broad array of NCIA stakeholders.”
Despite this promising step in the conversation on how to best deschedule cannabis, there are a number of issues presented in the draft that could undermine the stated intent of the legislation and its authors in the Senate, as well as pertinent policies that go unaddressed. In particular, there are serious concerns that the suggested tax structure and other financial rules will result in even more onerous financial burdens than those which currently exist under prohibition and which will fall disproportionately on small businesses. This would limit the opportunities created by legal cannabis markets and hamper efforts to support restorative justice and social equity in the cannabis industry at the state and federal level. A detailed analysis of the proposed tax structure by Whitney Economics is available here.
“Cannabis reform is a complex task, but one that is crucial to get right,” said Michael Cooper, co-chair of NCIA’s Policy Council and managing partner at MadisonJay Solutions LLC. “As the nation’s largest trade association for the cannabis industry, NCIA is submitting these comments and looks forward to continuing to work with the impending legislation’s sponsors to make this reform as effective and impactful as possible.”
NCIA is committed to ending prohibition and repairing the harms it has caused while creating a vibrant legal industry that can sustain hundreds of thousands of well-paying jobs and become a major economic engine for America in the decades ahead. We are confident that congressional offices share this commitment with NCIA and trust they will seriously consider this feedback and that of our advocacy and industry allies.
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 36 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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Senate Leadership Releases Draft Legislation to Make Cannabis Federally Legal
Bill would remove cannabis from schedule of controlled substances, establish federal regulatory framework, protect state autonomy, and help repair harms caused by prohibition
Legislation opens doors for cannabis policy reform in the current Congress
WASHINGTON, D.C. – Senate Majority Leader Chuck Schumer (D-NY), along with Sens. Cory Booker (D-NJ) and Ron Wyden (D-OR), released draft legislation today that would remove cannabis from the schedule of controlled substances while allowing states to determine their own cannabis policies. The proposed plan would also establish a regulatory framework for state-legal cannabis businesses, expunge non-violent cannabis convictions, and create programs to support small and minority-owned cannabis businesses while reinvesting resources in the communities that have been disproportionately harmed by prohibition.
You can find a summary here and the full draft language here.
The Senate sponsors held a press conference on the draft bill today which can be viewed here.
“As Majority Leader Schumer noted today, this is a momentous occasion. This is the first time that the leadership of the upper chamber has championed a bill to end federal cannabis prohibition, and the fact that it is being done in such a thoughtful and proactive manner, engages stakeholders, and includes robust social justice and regulatory language is revolutionary,” said Aaron Smith, co-founder and chief executive officer of the National Cannabis Industry Association. “Given the political environment in the Senate right now, our focus will be to explore ways to potentially improve the bill and gain Republican votes – particularly from those lawmakers representing states where cannabis is legal in some form – while we shore up Democratic support. This draft legislation is a great vehicle to jumpstart these conversations and find common ground across the political spectrum.”
At the press conference announcing the draft legislation, Sen. Booker noted that he would oppose any consideration of incremental measures that would provide safe harbor for financial institutions to offer services and loans to cannabis businesses prior to the passage of a more comprehensive legalization bill.
“We absolutely share Sen. Booker’s desire to enact comprehensive reform as soon as possible, but we also recognize – as do the sponsors of this legislation – that the status quo disproportionately hurts marginalized communities and small businesses, and that getting the bipartisan support necessary for passage in the current term is far from certain,” continued Smith. “Closing the door on broadly supported incremental reforms like the SAFE Banking Act while the Senate seeks compromise on farther-reaching bills hurts the possibilities for consensus and ignores the very real needs of small business operators who have repeatedly said that access to banking services and traditional lending is an existential issue. Big companies already have access to these services, and delaying that same access for small businesses would not further the goal of fostering a more diverse and inclusive industry. These efforts are not mutually exclusive, and history has shown that when it comes to cannabis, every step in the right direction builds momentum for bigger and better reforms at the state and national level.”
A recent study by The Initiative reported that access to capital was the top concern of social equity cannabis operators.
Laws making cannabis legal and regulated for adults have been passed in 19 states as well as the District of Columbia and the territories of CNMI and Guam, and 36 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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NCIA Releases Overview of Cannabis Medical Knowledge
Summary intended to educate and guide policymakers and medical professionals
WASHINGTON, D.C. – The National Cannabis Industry Association (NCIA) has released an overview designed to help inform and guide policymakers and medical professionals on the science, history, and uses of medical cannabis and promote policies that facilitate further research and fair, legal access. This publication was developed by scientists and doctors working with NCIA’s Policy Council.
The objective of this report is to provide medical professionals and policymakers with an up-to-date, science-based perspective on the medicine of cannabis in the United States. It includes input from medical doctors, researchers, veterinarians, and policy experts, all committed to the development of a cannabis industry founded on scientific research, patient safety, and equitable access to safe products and clinical oversight. It includes a history of medical cannabis, an overview of the endocannabinoid system and the complex nature of the cannabis plant, and explores clinical uses as well as safety considerations. The paper also highlights the obstacles that currently hinder research, and includes policy recommendations to remove those barriers and promote evidenced-based therapeutic cannabis access and use.
The full paper is available here.
“Despite the well-established medical efficacy of cannabis and the overwhelming public support for regulating the substance, many politicians and doctors still lack a basic understanding of the science of cannabis and continue to oppose sensible reforms,” said Aaron Smith, co-founder and chief executive officer of the National Cannabis Industry Association. “We hope to provide a fundamental and balanced overview of the medical impacts and therapeutic uses of cannabis to the people who so often hold the keys to safe and legal access.”
NCIA intends to disseminate this overview to members of Congress and the Biden administration, as well as key federal agencies and medical organizations.
A recent Pew Research poll showed that 91% of U.S. adults think cannabis should be legal for medical purposes. A Gallup poll from late last year showed a record 68% national support for making cannabis legal for adults.
Cannabis is legal for adults in 17 states as well as the District of Columbia and the territories of CNMI and Guam, and 36 states as well as several territories have comprehensive medical cannabis laws. The substance is legal in some form in 47 states. Dozens of states are considering cannabis policy reform legislation this year.
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Bill to End Federal Cannabis Prohibition and Repair Harms Reintroduced in U.S. House
MORE Act – first approved in December floor vote – would remove cannabis from list of controlled substances, expunge federal convictions, provide resources to small businesses and impacted communities
WASHINGTON, D.C. – The Marijuana Opportunity, Reinvestment, and Expungement (MORE) Act, which would remove cannabis from the federal Controlled Substances Act and attempt to undo the damage caused by racially and economically disproportionate enforcement of prohibition, was reintroduced in the House of Representatives today. An earlier version of the bill was passed in December in a largely party-line vote, becoming the first comprehensive cannabis policy reform legislation to receive a floor vote or be approved by either chamber of Congress.
The MORE Act, sponsored by House Judiciary Chairman Jerrold Nadler (D-NY), would make cannabis legal at the federal level by removing it from the Controlled Substances Act and eliminating the conflict between federal law and states with regulated cannabis systems, and would require the expungement of past federal cannabis convictions. The bill would establish a Cannabis Justice Office to administer a program to reinvest resources in the communities that have been most heavily impacted by prohibition, funded by a graduated tax on state-legal cannabis commerce. It would also prevent discrimination based on cannabis consumption during immigration proceedings, and permit doctors within the Veterans Affairs system to recommend medical cannabis to patients in accordance with applicable state laws.
The MORE Act has not been reintroduced in the Senate yet, but Majority Leader Chuck Schumer (D-NY) has made cannabis policy reform a priority for the upper chamber this year, and is expected to introduce separate comprehensive descheduling and restorative justice legislation with Sens. Cory Booker (D-NJ) and Ron Wyden (D-OR) in the near future.
“The House has the opportunity to double down on its commitment to justice and economic recovery this year by taking up the MORE Act immediately and continuing the robust debate on how to best end the disastrous federal war on cannabis,” said Aaron Smith, co-founder and chief executive officer of the National Cannabis Industry Association (NCIA). “Given the rapidly growing number of states with legal cannabis markets and the steadily increasing support from voters across the political spectrum, we expect there could be even more support for ending the failed federal prohibition in this session.”
Revisions from the version passed by the House in December include the removal of a provision that was added shortly before the successful floor vote that would have allowed federal regulators to deny cannabis business licenses to applicants who have prior felony convictions. It would also include provisions to allow the Small Business Administration to provide loans and technical assistance directly to cannabis-related businesses and support state and local equity licensing programs and put added emphasis on assisting people who have been most impacted by prohibition in succeeding in any industry.
However, advocates are concerned about the lack of a strong and comprehensive regulatory structure being included in the introductory language.
“In order to create a federal structure that is narrowly tailored to the unique characteristics of the cannabis industry and helps ensure fair opportunities for marginalized communities, innovation and stakeholder engagement are absolutely vital,” continued Smith. “We need to move beyond the alcohol and tobacco models and incorporate the lessons learned in legal cannabis markets if we want to create a regulatory environment where small businesses can truly thrive and which will start to repair the disparate harms caused by nearly a century of prohibition. We look forward to continuing our work with lawmakers on both sides of the aisle to further develop this legislation and continue the momentum that has been building since the House first voted to deschedule cannabis.”
A recent Gallup poll showed a record 68% of Americans support making cannabis legal. On Election Day, voters in Arizona, Montana, and New Jersey approved measures to regulate cannabis for adults, while Mississippians overwhelmingly approved a medical cannabis referendum and voters in South Dakota passed both adult use and medical initiatives. The Mississippi Supreme Court recently invalidated the popular medical initiative due to an outdated technicality, and voters and advocates in South Dakota await a final ruling by that state’s highest court on a similar challenge to the approved adult use ballot initiative.
So far in 2021, the states of New Mexico, New York, and Virginia have all passed laws regulating cannabis for adults, and Alabama approved a medical cannabis bill earlier this month. Dozens of states are considering cannabis policy reform legislation this year.
Cannabis is now legal for adults in 17 states as well as the District of Columbia and the territories of CNMI and Guam, and 36 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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SAFE Banking Act Passed by House of Reps. Again in Bipartisan Vote
Legislation would allow state-legal cannabis businesses fair access to financial services
Today is fourth time the House has approved cannabis banking reform
WASHINGTON, D.C. – The House of Representatives approved legislation again today that would provide safe harbor for financial service providers to work with cannabis businesses that are in compliance with state laws. The Secure and Fair Enforcement (SAFE) Banking Act, or H.R. 1996, was reintroduced in March by Reps. Ed Perlmutter (D-CO), Steve Stivers (R-OH), Nydia Velazquez (D-NY), and Warren Davidson (R-OH), and had 177 total cosponsors by the time of the vote. The legislation was approved by a vote of 321-101, including a majority of voting Republicans.
This is the fourth time that the House has approved the language of the SAFE Banking Act, initially as the first standalone cannabis policy reform bill ever passed by either chamber of Congress in 2019 and two more times last year as part of pandemic relief packages that were not approved in the Senate.
“We are incredibly grateful to the bill sponsors who have been working with us for the last eight years to make this sensible legislation become law and have shepherded it through the House time and again,” said Aaron Smith, co-founder and chief executive officer of the National Cannabis Industry Association. “The SAFE Banking Act is vital for improving public safety and transparency and will improve the lives of the more than 300,000 people who work in the state-legal cannabis industry. It will also help level the playing field for small businesses and communities with limited access to capital. It is time for the Senate to start considering the companion legislation without delay.”
Advocates are hopeful that Senate Banking Committee Chair Sherrod Brown (D-OH) will take up the bill in the near future so that it can begin to move through the upper chamber as soon as possible and become law before the end of the year.
The SAFE Banking Act would protect financial institutions from federal prosecution for providing banking and other services to cannabis businesses that are in compliance with state law, as well as help address serious public health and safety concerns caused by operating in predominantly cash-only environments. The legislation would improve the operational viability of small businesses by helping them reduce costs associated with lack of access to banking and increasing options for traditional lending that many small businesses in other fields rely upon. It would also mandate a study on diversity in the cannabis industry.
Laws making cannabis legal for adults have been passed in 18 states as well as the District of Columbia and the territories of CNMI and Guam, and 36 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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New York Becomes Latest State to Regulate Cannabis for Adults
With nearly 40% of Americans now living in states with adult use cannabis laws, advocates call for federal reform
WASHINGTON, D.C. – On Wednesday, New York became the 16th state to approve a law creating a regulated adult use cannabis market when Gov. Andrew Cuomo signed the Marijuana Revenue and Taxation Act (MRTA). This legislation would make possession of up to three ounces and limited home cultivation legal and will automatically expunge convictions for behavior that is legal under the new law.
Nearly 60,000 people – the majority of whom are people of color – are arrested for marijuana violations in New York every year, the effects of which can permanently damage their ability to obtain employment, housing, and education, among other collateral consequences.
A 2020 report by Arcview Market Research and BDSA projected that the New York cannabis market will be worth more than $1.6 billion by 2025. The state plans to tax cannabis at 9%, with additional incremental taxes levied based on the type of product and the amount of THC contained in them. Forty percent of the revenue generated will be reinvested in communities that have been disproportionately harmed by cannabis prohibition. A 2019 report from the SUNY Rockefeller Institute of Government estimated that the legal cannabis market in New York will create more than 30,000 jobs.
Roughly 40% of the United States population now lives in states that have passed adult use cannabis laws.
“We commend Empire State lawmakers for aligning state law with the will of the vast majority of voters who support legal and regulated cannabis markets as an alternative to failed prohibition,” said Aaron Smith, co-founder and chief executive officer of the National Cannabis Industry Association (NCIA). “We are rapidly approaching a point where a majority of Americans will be living in states that have passed laws to regulate cannabis for adults, and we’re counting on Congress and the White House to finally harmonize federal law with these successful state programs.”
Cannabis industry advocates are hopeful that this move will lead to accelerated progress throughout the region. Voters in New Jersey overwhelmingly approved an adult use measure at the ballot box last year and the governors or legislatures of Connecticut, Delaware, Pennsylvania, and Rhode Island have prioritized comprehensive cannabis policy reforms in 2021.
Cannabis is now legal for adults in 16 states as well as the District of Columbia and the territories of CNMI and Guam, and 36 states as well as several territories have comprehensive medical cannabis laws. The substance is legal in some form in 47 states. Virginia Gov. Ralph Northam is awaiting legislative approval for amendments to the adult use legislation that was passed earlier this year and is expected to sign the bill into law soon. Dozens of other states are considering cannabis policy reform measures this year.
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SAFE Banking Act Reintroduced in Senate
Bipartisan measure to improve public safety, transparency, and access to capital would protect financial institutions working with state-legal cannabis businesses
WASHINGTON, D.C. – On Tuesday, a bipartisan group of lawmakers reintroduced the Secure and Fair Enforcement (SAFE) Banking Act in the U.S. Senate. This legislation, which was introduced by Sens. Jeff Merkley (D-OR) and Steve Daines (R-MT) along with 27 original cosponsors, would protect banks and other financial institutions from federal prosecution simply for providing services to cannabis businesses that are operating in compliance with state laws.
Due to the threat of federal penalties and costly reporting requirements, most financial services companies will not work with state-legal cannabis businesses, forcing the majority of the regulated industry to operate on a cash-only basis. This creates numerous public safety and transparency issues for the industry, law enforcement, government officials, and other service providers, and has led to cannabis businesses being increasingly targeted by criminals with sometimes fatal results.
“No one working in a store or behind a register should have to worry about experiencing a traumatic robbery at any moment,” said Sen. Merkley. “That means we can’t keep forcing legal cannabis businesses to operate entirely in cash – a nonsensical rule that is an open invitation to robbery and money laundering. Let’s make 2021 the year that we get this bill signed into law so we can ensure that all legal cannabis businesses have access to the financial services they need to help keep their employees safe.”
Providing a safe harbor for financial service providers to work with cannabis businesses would also allow for traditional lending, which is currently unavailable to almost all of the industry. This lack of access to capital most adversely affects small businesses and marginalized communities that are trying to break into the industry and thrive in the absence of generational wealth and deep financial networks.
Companion legislation was reintroduced in the House last week. It was first passed in that chamber in a historic floor vote with overwhelming bipartisan support in September 2019, and was included in the language of two subsequent House-approved pandemic relief bills in 2020. The Senate version stalled under the leadership of then-Senate Majority Leader Mitch McConnell (R-KY) despite bipartisan sponsorship prior to the pandemic, which de-prioritized stand-alone cannabis legislation in that chamber.
There are currently 72 senators representing states with comprehensive medical or adult use cannabis laws and whose constituents would directly benefit from passage of the SAFE Banking Act, including 25 Republicans.
“With new Senate leadership now firmly in favor of cannabis policy reform, we are optimistic that this narrowly tailored – but absolutely necessary – legislation will be allowed to progress through the hearing process without delay,” said Aaron Smith, co-founder and chief executive officer of the National Cannabis Industry Association (NCIA). “This bill is a meaningful first step that will have immediate benefits in terms of safety, transparency, fairness, and much-needed economic opportunities while Congress continues working toward more comprehensive solutions to end prohibition and sensibly regulate cannabis.”
Cannabis is legal for adults in 15 states as well as the District of Columbia and the territories of CNMI and Guam, and 36 states as well as several territories have comprehensive medical cannabis laws. The substance is legal in some form in 47 states. Virginia is poised to become the 16th state – and the first in the South – to regulate cannabis for adults after its lawmakers sent legislation to Gov. Ralph Northam for approval last month.
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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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NCIA Critical of White House for Punishing Employees Over Past Cannabis Consumption
WASHINGTON, D.C. – An article published in The Daily Beast today reports that the Biden Administration has suspended, transferred, or requested the resignations of numerous employees in various White House roles, predominantly younger people for whom state-legal cannabis programs have been a reality for a significant portion of their lives. This includes Washington, D.C., where cannabis has been legal to possess and cultivate since 2014.
Recent guidance from the Office of Personnel Management advised federal employers not to view past cannabis use as an automatic disqualifier for otherwise qualified job candidates. President Biden has expressed support for decriminalizing cannabis both before and after the election. Vice President Harris has publicly supported legalizing and regulating cannabis, and was the lead Senate sponsor of the MORE Act in the last Congress, which would remove cannabis from the schedule of controlled substances.
“While we may not know all the details of these cases, this looks really bad for the White House,” said Aaron Smith, co-founder and chief executive officer of the National Cannabis Industry Association. “Punishing current and potential employees for past cannabis use, particularly under circumstances where it was protected by state laws, flies in the face of the Administration’s purported emphasis on fairness and sensible cannabis policies, to say nothing of its very recent guidance to federal agencies in this area. At the very least, this sends the wrong message to federal personnel managers, as well as policymakers and employers across the country.”
“Three of the last five presidents – including the current president’s former boss – have admitted to consuming cannabis,” Smith continued. “The idea that past use would make a person unfit for service in the White House or ineligible for a security clearance is laughable.”
Cannabis is legal for adults in 15 states as well as the District of Columbia and the territories of CNMI and Guam, and 36 states as well as several territories have comprehensive medical cannabis laws. The substance is legal in some form in 47 states. Cannabis policy reform legislation is being considered in dozens of states this year, and lawmakers in Virginia recently approved a bill to legalize and regulate adult use.
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SAFE Banking Act Reintroduced in House of Representatives
Bipartisan bill would remove barriers for financial institutions to work with state-legal cannabis businesses
House passage expected after being approved three times since 2019
WASHINGTON, D.C. – The Secure and Fair Enforcement (SAFE) Banking Act was reintroduced in the House of Representatives today. This bill, which was introduced by Reps. Ed Perlmutter (D-CO), Steve Stivers (R-OH), Nydia Velazquez (D-NY), and Warren Davidson (R-OH), would provide a safe harbor for banks and other financial institutions working with state-legal cannabis businesses.
In the last Congress, this legislation was the first cannabis policy reform bill brought to the floor of the House in recent history – with 206 co-sponsors – and was the first to be approved by either chamber of Congress with an overwhelming bipartisan vote of 321-103 in September 2019. The bill moved to the Senate but consideration in that chamber was delayed due to the onset of the coronavirus pandemic. The House also approved two separate pandemic relief bills last year that included the legislation’s language.
“Thousands of employees and businesses across this country have been forced to deal in piles of cash for far too long,” said Rep. Perlmutter. “It is time to enact SAFE Banking to align federal and state laws and reduce the public safety risk in our communities. I appreciate the partnership of the cannabis industry and businesses across this country who have added their voice to this effort. The SAFE Banking Act is an important first step to treating cannabis businesses like legal, legitimate businesses and beginning to reform our federal cannabis laws.”
The SAFE Banking Act would protect financial institutions from federal prosecution for providing banking and other services to cannabis businesses that are in compliance with state law, as well as help address serious public health and safety concerns caused by operating in predominantly cash-only environments. The legislation would make traditional lending more accessible for the cannabis industry, helping alleviate the lack of access to capital that has presented major hurdles for smaller businesses. It would also mandate a study on diversity in the cannabis industry. The latest version makes clear that protections would extend to financial services providers working with the hemp industry as well.
“At a time when small businesses need all the support they can get, and after cannabis businesses specifically have been providing essential services and generating significant tax revenues for states and the federal government with little to no financial relief, it is more imperative than ever to get the SAFE Banking Act passed into law,” said Aaron Smith, co-founder and CEO of the National Cannabis Industry Association (NCIA). “Lack of access to banking services continues to create serious unnecessary issues for public safety, transparency, and access to traditional lending that smaller operators desperately need. These businesses are contributing billions of dollars to the national economy every year, and need to be treated like any other legal regulated industry. We are grateful to the sponsors of this legislation who have generated strong and consistent bipartisan support year after year, and we are confident that it has a clear path to approval again.”
Cannabis is legal for adults in 15 states as well as the District of Columbia and the territories of CNMI and Guam, and 36 states as well as several territories have comprehensive medical cannabis laws. The substance is legal in some form in 47 states. Virginia is poised to become the 16th state to pass adult use legislation when Gov. Ralph Northam signs a bill approved by the legislature into law.
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NCIA Decries Potency Caps, Home Cultivation Bans
Trade group opposes recent state and federal proposals that would endanger consumers and limit benefits of regulated markets
WASHINGTON, D.C. – In response to recent proposals at both the state and federal level to ban limited home cannabis cultivation and place caps on the percentage of THC allowed in regulated products, the National Cannabis Industry Association (NCIA) is joining a growing chorus of advocates and stakeholders in opposing such policies and voicing its concerns that their adoption would create unnecessary public health and safety concerns, and curtail the positive impact that regulation has had in states that have implemented modern cannabis policies.
Earlier this month, the Senate Caucus on International Narcotics Control released a report that recommended placing severe limitations on the amount of THC allowed in regulated products as both chambers of Congress are working on legislation to remove cannabis from the schedule of controlled substances and provide regulatory guidance to states with legal markets. Florida lawmakers are currently considering a bill to impose similar limits on products available through the state’s medical cannabis program. And several states in which adult use cannabis legislation is progressing are entertaining bans on limited home cultivation by adults.
“These misguided efforts are just the latest iteration of a long history of scare tactics used to unfairly stigmatize and criminalize products and behaviors that are far safer when regulated,” said Aaron Smith, co-founder and chief executive officer of the National Cannabis Industry Association. “Cannabis policies should be based on sound evidence and pragmatism rather than fear. We cannot afford to ignore the lessons from our disastrous century-long experiment with prohibition by simply banning things that may present policy challenges.”
Proposed potency caps often seek to limit THC content to levels well below what is common in even some of the lowest potency flowers and concentrates available in regulated markets throughout the country. Sales data in regulated markets show that products above the proposed THC limits continue to be popular with consumers, and scant clinical or epidemiological evidence exists to suggest significant or widespread risk associated with those products for the vast majority of consumers.
Furthermore, the outbreak of THC vaping-related illnesses at the end of 2019 – in which the vast majority of cases were tied to unregulated and untested products – illustrates both the continued availability and potential harms associated with unregulated products, as well as the willingness of some cannabis consumers to obtain them even in places where regulated options exist. This is particularly true if regulated providers do not exist or are unable to effectively compete with the unregulated market on consumer price or product options because of onerous regulatory limitations.
Potency caps on regulated products would likely send many more consumers to the unregulated market. This presents public health and safety concerns above and beyond those directly facing consumers. Increased demand for unregulated high-potency cannabis concentrates will certainly lead to an increase in unsupervised and clandestine manufacture of those products. The volatile chemicals and high degree of expertise necessary to safely process many cannabis concentrates makes unregulated production extremely dangerous, and illegal processing operations have been linked to numerous fires and explosions throughout the country.
It should also be noted that Marinol, the first FDA-approved cannabinoid pharmaceutical drug, is nearly 100% THC and is still regularly prescribed by doctors in the United States.
“If the intent of lawmakers and regulators is to protect consumer health and safety, we need to enact sensible policies to manage the full gamut of existing cannabis products, as many states have already done successfully,” said Smith. “If we can effectively regulate high-proof alcohol, which – unlike cannabis – is directly tied to tens of thousands of deaths every year, we can do it with cannabis. Potency caps will only serve to endanger consumers and the general public.”
Limited home cultivation is an issue that is becoming more prominent as state legislatures increasingly tackle cannabis policy reform in lieu of voter-driven ballot initiatives, which have almost uniformly supported the legal ability of adults to grow small amounts of cannabis in private residences. Of the 15 states where cannabis is legal and regulated for adults, only Washington, New Jersey, and Illinois do not allow limited home cultivation, though Illinois and Washington have narrow home cultivation exceptions for registered medical cannabis patients.
Lawmakers in Washington – one of the first two states to approve legalization for adults – are currently considering a bill to make home cultivation legal. Adult use legislation that includes home cultivation was recently approved in Virginia, and is awaiting the governor’s signature. However, recent proposals in Connecticut, New York, and Oklahoma have omitted this allowance to the concern of advocates and industry alike.
“Allowing adults to possess and consume cannabis while punishing people who wish to provide it for themselves flies in the face of rationality and justice,” continued Smith. “Just as individuals are allowed to make small amounts of beer at home, so too should cannabis consumers, and history has shown that retaining criminal penalties for such behavior certainly means that enforcement will be disproportionately carried out in marginalized communities. Limited home cultivation also provides an inexpensive and easily accessible way for people to develop skills and experience that can be applied in the legal regulated industry. Without home brewing, the beer industry would still be dominated by a handful of companies, and the robust craft brewing industry would not exist. We cannot allow the same thing to happen in the burgeoning cannabis industry.”
Cannabis is legal for adults in 15 states as well as the District of Columbia and the territories of CNMI and Guam, and 36 states as well as several territories have comprehensive medical cannabis laws. The substance is legal in some form in 47 states. Virginia is poised to become the 16th state to regulate cannabis for adults after its legislature approved legalization legislation this month, which Gov. Ralph Northam is expected to sign.
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National Cannabis Industry Association Reschedules 2021 Events to Deliver Full Experience
The National Cannabis Industry Association (NCIA) is pleased to announce its new event schedule. To deliver the full, in-person experience for NCIA’s cannabis business events, they have been rescheduled for the second half of 2021.
The Cannabis Business Summit & Expo, originally scheduled for August 3-5, 2021 in San Francisco, will now take place December 15-17, 2021, and will remain at the Moscone Center in San Francisco.
The Midwest Cannabis Business Conference, which was scheduled for August 25-26, 2021 in Detroit, will now take place September 22-23, 2021, and remains at TCF Center.
“While we recognize the inconvenience of a date change, we are confident that this is the best decision for our members, exhibitors, sponsors, and attendees,” said Aaron Smith, Chief Executive Officer of NCIA. “The cannabis industry is a tight-knit community, and we’re dedicated to providing our members with the highest quality and most enriching experiences in 2021. As we continue to navigate the ever-changing landscape and carry on with our cannabis policy reform efforts in Congress, we look forward to making 2021 a pivotal year for NCIA members and our events program.”
As NCIA looks forward to its 2021 cannabis business events, their number one priority is the health & safety of all event participants, in addition to providing a reliably unique and enriching experience for the industry. NCIA will implement health & safety protocols that meet or exceed those set forth by federal, state, and local health departments at all events.
Although the 2021 events have been rescheduled, NCIA continues its advocacy efforts on behalf of cannabis businesses and feels the current state of the legal cannabis industry necessitates the importance of bringing the industry together in 2021. NCIA highlights the fact that in 2020, on the heels of voters in four states approving adult use cannabis measures in November, cannabis became an $18.3 billion industry in the United States and the job market saw a 31% increase in full-time legal cannabis jobs. The appetite for federal reform is stronger than ever with public opinion for legalization ringing in at an all-time high of 68% of Americans.
For more information about any of NCIA’s events, please contact: info@cannabisbusinesssummit.com.
