HHS Recommends Rescheduling: Now What? | 9.14.23 | Fireside Chats with NCIA’s Government Relations Team

NCIA’s #IndustryEssentials webinar series is our premier digital educational platform featuring a variety of interactive programs allowing us to provide you timely, engaging and essential education when you need it most. The Fireside Chat series of NCIA’s #IndustryEssentials webinars are an opportunity for industry professionals to hear from our government relations team and guests about the latest developments in federal policy LIVE.

For more than fifty years, the federal government has maintained that cannabis is a Schedule I drug, meaning that it has a high potential for abuse and no accepted medical value.

That recently changed when the Department of Health and Human Services (HHS) recommended to the Drug Enforcement Administration (DEA) that cannabis be placed in Schedule III, meaning that it has moderate to low abuse potential, a currently accepted medical use, and a low potential for psychological dependence.

There’s no doubt this move was an historic one– but what does it mean? What’s next? How will it impact your business? Join NCIA’s Aaron Smith and Michelle Rutter Friberg as they unpack all these questions surrounding cannabis rescheduling impact and more!

Panelists:

Michelle Rutter Friberg
Director of Government Relations
NCIA

Aaron Smith
CEO & Co-Founder
NCIA

Summer Recess & Cannabis Progress: Cannabis News from the Capitol and Expectations for the August Break

by Michelle Rutter Friberg, NCIA’s Director of Government Relations

After NCIA’s 11th Annual Cannabis Industry Lobby Days concluded in May, cannabis news from Washington, D.C. has been relatively slow. Curious about what’s next before August recess begins? Keep reading to see what may happen ahead of the break and for a recap on where we’re at now.

SAFE Banking

Last month, just before NCIA’s Lobby Days, the Senate Banking, Housing, and Urban Affairs Committee held a hearing titled “Examining Cannabis Banking Challenges of Small Businesses and Workers”. Witnesses included the bill’s lead sponsors, Senators Jeff Merkley (D-OR) and Steve Daines (R-MT), as well as Ademola Oyefes (International Vice President and Director of Legislative and Political Action Department, United Food and Commercial Workers International Union [UFCW]), Michelle Sullivan (Chief Risk & Compliance Officer, Dama Financial), Dr. Kevin Sabet (President/CEO, Smart Approaches to Marijuana [Project SAM]); and Cat Packer (Vice Chair, Cannabis Regulators of Color Coalition).

My takeaways from the hearing: no new talking points from Project SAM, surprised by DAMA’s comments (they’ve since walked their testimony [which many saw as opposition to the bill] back), and most importantly of all: the real need for SAFE so that we can stop talking about access to financial services and start talking about legalizing and regulation cannabis in a smart and equitable way.

As for what’s next? Banking Committee Chairman Sen. Sherrod Brown (D-OH) recently shared that SAFE Banking would be scheduled for a markup after a few other bills received theirs. The good news? That process has begun. The bad news? Still no formal news on when SAFE’s markup will be. I’m expecting it to be after the Fourth of July break but before members leave D.C. for their annual, month-long August recess.

Appropriations

For years, advocates have looked to the appropriations process as a way in which to enact cannabis reform at the federal level.

In 2014, a provision that protected medical cannabis patients, programs, and businesses from federal interference (known as the “Rohrabacher-Farr” amendment) was included in the federal budget and became law. Since then, the provision has been included in appropriations bills and remains the law of the land.

NCIA has (and continues to) lobby on behalf of expanding this provision to include adult-use businesses and to also use the appropriations process to enact other reforms like allowing Washington, D.C. to commercialize adult-use cannabis sales.

House GOP negotiators heightened the stakes earlier this week when they announced they would mark up their FY2024 spending plans to levels lower than the budget caps set as part of a deal struck between President Biden and Speaker Kevin McCarthy (R-CA). This will undoubtedly make the already contentious budget-process even more volatile.

Maryland

On July 1, adult-use cannabis sales will begin in Maryland. Cannabis became legal for those over 21 in Virginia in 2021, while D.C. legalized cannabis for adults via Initiative 71 in 2014 (but have been unable to begin sales due to congressional interference). Legal sales in the District’s neighboring states means that members of Congress will surely be more exposed to the benefits of regulation.

So, while it’s been relatively quiet in D.C. in June, stay tuned in July for a possible first-ever Senate markup of SAFE Banking! As always, NCIA will continue to advocate on behalf of your business and keep you updated on the latest.

Video: NCIA Today – Thursday, March 24, 2022

NCIA Deputy Director of Communications Bethany Moore checks in with what’s going on across the country with the National Cannabis Industry Association’s membership, board, allies, and staff. Join us every other Thursday on Facebook for NCIA Today Live.

Video: NCIA Today – July 30, 2021

House Rules Committee Weighs In On Cannabis Appropriations Amendments

By Morgan Fox, NCIA’s Director of Media Relations

The process of approving the federal budget is moving full steam ahead, with the House Rules Committee considering several amendments related to cannabis to a series of funding bills this week. Amendments that pass this committee move on to a full vote on the House floor.

In terms of overall cannabis policy reform, the most prominent amendment is one that would prevent the Department of Justice from using funds to interfere with state adult-use and medical cannabis programs or target people and businesses that are in compliance with state cannabis laws. This amendment was offered by bipartisan congressional cannabis champions Reps. Earl Blumenauer (D-OR), Tom McClintock (R-CA), Eleanor Holmes Norton (D-DC) and Barbara Lee (D-CA). The amendment was ruled in order Wednesday and will proceed to a vote, possibly as soon as this week.

Even though the DOJ has generally been respecting state cannabis laws in recent years, passage of this amendment in the final federal budget would add the force of law to that policy for the next fiscal year, providing peace of mind for tens of thousands of regulated cannabis businesses and millions of consumers across the country. This would also add significant momentum to congressional efforts to remove cannabis from the schedule of controlled substances and regulate it at the federal level in separate stand-alone legislation.

Provisions to prevent the DOJ solely from targeting state-legal medical cannabis programs and providers have been approved by Congress every year since 2014. With public support for medical cannabis at roughly 90%, these protections have become mostly a non-issue in Congress and have been included in the original base language of the relevant House appropriations bills since 2019.

The amendment extending those protections to state adult-use programs was approved by the House in the budget votes in 2019 and 2020. Unfortunately, it did not receive the same support in the Senate and was not included in the final funding packages approved by the previous Congress.

An amendment that would remove the renewal of medical cannabis program protections from this legislation, flying in the face of long-supported policy and unnecessarily taking up lawmakers’ time, was also introduced by Rep. Doug LaMalfa (R-CA) and ruled in order.

Rep. LaMalfa, a staunch prohibitionist, has also introduced several amendments to appropriations bills to increase DEA funding for eradication efforts. He made headlines recently when his office released videos of him joining law enforcement in bulldozing outdoor cultivation sites in Siskiyou County, California while grandstanding for the camera and ripping off quotes from the film Apocalypse Now. These sites were located in primarily Hmong communities, a Southeast Asian ethnic diaspora that alleges that the county has prevented its members from obtaining cannabis licenses and prevented water shipments to their communities with serious harm to the quality of life there. LaMalfa’s behavior in these videos is particularly offensive given that many Hmong fled their homes to settle in the United States during and following the Vietnam War after facing persecution for supporting America in that conflict.

Unfortunately, some positive cannabis amendments were ruled out of order by the committee this week and will not be voted upon in this legislation. Delegate Norton offered a pair of provisions that would have prevented the Dept. of Housing and Urban Development from using funds to punish residents of federally assisted housing for state-legal cannabis use in adult-use and medical states, respectively. These reforms are incredibly important, as people living in federal housing can be and are frequently evicted from their homes if they or anyone in their household exercises their legal rights or uses the medicine that works best for them. This leaves many people with no place to legally use cannabis, leading to increased public consumption in low-income communities and continued racial disparities in arrests and citations.

On the positive side, an amendment from Rep. Kurt Schrader (D-OR) to highlight the need for the Food and Drug Administration to establish regulations for CBD products was also ruled in order and approved.

Last week, another bad amendment, introduced by Rep. Debbie Lesko (R-AZ), to remove language from the original legislation that would allow federal funding for universities that are conducting cannabis research was ruled in order but voted down in the House.

The House appropriations bills have a broad range of other cannabis provisions related to topics like banking reform, research, law enforcement funding and grant programs, federal employment guidelines, and allowing the District of Columbia to finally regulate cannabis after it was legalized by voters in 2014. We’ll get into these in more detail in the coming weeks as we get closer to a full vote in the House. Stay tuned!

Spring Update from Capitol Hill – SAFE Banking, the MORE Act, and Appropriations

by Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations

It’s hard to believe that somehow it’s March again, but all the while, the NCIA team in D.C. has been hard at work lobbying and advocating on behalf of you and your business. Things are really beginning to warm up and spring into action, so keep reading below for a quick update on where things are at with SAFE Banking, comprehensive reform, appropriations, and more!

SAFE Banking

Bill reintroductions in both chambers have been off to a slow start. Between a new session, most people still working remotely, a delayed organizing resolution in the Senate, and a somewhat contentious COVID relief package that’s finally passed, members of Congress and their staff have been incredibly busy. But, now that that’s all behind us, I’d suggest preparing for many cannabis bills to be introduced soon.

Specifically, you can expect the reintroduction of the SAFE Banking Act to happen in both the House of Representatives and the Senate within the next couple of weeks. When the bill was introduced in the House during the 116th Congress, it had over 100 cosponsors. In the Senate, it was introduced with more than 20 — that’s more than a fifth of the entire chamber! The bill later went on to be passed by the entire House of Representatives in September 2019 by a vote of 321-103.

You’ll remember that the SAFE Banking Act addresses urgent public safety concerns by allowing tightly regulated marijuana businesses the ability to access the banking system and make our communities safer. The bill also provides protections from money laundering laws for any proceeds derived from these state-legal marijuana businesses. The bill also includes the Financial Institution Customer Protection Act and protections for hemp and hemp-derived CBD-related businesses, which sometimes still struggle in accessing financial services despite the legalization of hemp in the 2018 Farm Bill.

Don’t expect any big changes, however — the bill this Congress includes minor technical changes to the safe harbor language, strengthened hemp provisions, and other technical updates.

Comprehensive Reform

While SAFE Banking’s timeline is clear, the same can’t completely be said for more comprehensive reform. When I say comprehensive reform, I’m talking specifically about bills that would remove marijuana from the Controlled Substances Act like the MORE Act and the upcoming Schumer-Booker-Wyden bill.

In the House, we are continuing to work with various committees and members to determine the best path forward for the MORE Act and what changes should be made. I wouldn’t be surprised if that bill gets reintroduced sometime this spring, but the process is truly still in flux, so I also wouldn’t be surprised if it was postponed awhile. This will be determined by the lead sponsors’ offices and also by the congressional calendar and how various bills/issues move through the legislative process.

In the Senate, we’re excited to be working with Leader Schumer (D-NY) and Sens. Booker (D-NJ) and Wyden (D-OR) on their new cannabis bill. That bill will draw heavily on provisions from the MORE Act, but will also include expanded language on taxation and smart regulations. Now that the COVID relief bill has passed into law, I think we can expect to see their bill be introduced sometime in the near future.

You’ll also remember that NCIA was one of two industry trade associations invited to the initial meeting with those Senators to discuss this new bill. We’re looking forward to their discussion draft and offering our thoughts.

Appropriations

It’s spring, which means it’s appropriations season here in D.C.! These bills are legislation that “appropriates,” or sets aside, federal funds to be divided between specific federal government departments, agencies, and programs. For a refresh on the history of appropriations, click here, or, if you’re interested in how these provisions relate to cannabis, click here.

While the appropriations amendment that protects medical cannabis businesses, patients, and programs has been in law since 2014, we’ve had difficulty expanding those provisions and passing new cannabis-related amendments due to the formerly-Republican controlled Senate. However, now that Democrats control both houses of Congress, we’re excited to go back to the drawing board and get creative with the appropriations process to help provide some certainty and relief to the cannabis industry.

We’ll be looking at amendments pertaining to adult-use cannabis programs, banking, veterans access, allowing Washington, D.C. to finally implement a functioning 21+ cannabis program — and that’s just scratching the surface!

All of this is to say: things are really springing into action in D.C.! Prepare for many cannabis bills to begin getting reintroduced, and remember that the appropriations process takes months, so stay tuned via our blog, newsletter, NCIA Connect, and the new NCIA Mobile App to remain in the loop and get involved!

The 117th Congress – What To Watch

Before we dive into what to watch this Congress, we’d like to acknowledge the totally unacceptable and disgusting violence that besieged the Capitol recently. You can read NCIA’s statement on the insurrection here.

by Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations

We’re barely halfway through January, and it already feels like so much has happened in 2021! We at NCIA anxiously watched along with the rest of the country to see who would be victorious in the Georgia Senate races and, subsequently, which party would control the U.S. Senate. Both of the Democrats, Rev. Raphael Warnock and Jon Ossoff defeated their Republican opponents and won their races —- ensuring that the Senate will be split 50-50 with Vice President-elect Harris being the tiebreaker.

The 117th Congress has barely begun, but after Inauguration Day on January 20th, things will really take off here in the nation’s capital. Keep reading to see my answers to FAQ’s for the new Congress:

Whatever happened to the SAFE Banking Act?

During the 116th Congress, the SAFE Banking Act (H.R. 1595/S. 1200) became the first cannabis-related bill to be passed by a chamber of Congress. In September of 2019, SAFE came to the House Floor under a suspension of the rules and passed by a whopping 321-103. While the bill had a hearing in the Senate Banking Committee back in the summer of 2019, it never received a markup or moved further than that. In addition to the bill itself, the SAFE Banking Act was also included in not one, but two COVID-19 relief packages passed by the House, colloquially known as HEROES I & II.

This session, the SAFE Banking Act will be back, and with even better chances to pass! The bill will be reintroduced in both the House and Senate in the next 1-2 months and we expect little to no changes to the text. Additionally, we’re also continuing to work with our Hill champions on this issue to see if we can get the language included in the next COVID-19 relief package — something that both President-elect Biden and Democratic leadership has said is pretty much priority number one.

In the meantime, keep an eye out for reintroduction and for how many cosponsors the bill has when it’s dropped — when the 116th Congress ended, SAFE had already passed the House as but also had 33 Senate cosponsors — that’s one-third of the entire chamber!

What’s next for the MORE Act and comprehensive cannabis reform? Is legalization on the horizon?

Cannabis policy ended the year on a high note (no pun intended!) when the Marijuana Opportunity, Reinvestment, and Expungement Act (H.R. 3884), commonly known as the MORE Act, passed out of the House of Representatives by a vote of 228-164.

As I mentioned earlier, all eyes were on the Georgia Senate races as we strategized over what could be possible for the 117th Congress depending on the outcome. With the results in, we now have a better idea about what’s possible with comprehensive reform, but there’s still a lot of unknowns.

We know that the MORE Act will be reintroduced sometime in the coming months in both the House and Senate. In the Senate, the lead sponsor was Kamala Harris, who is now Vice President-elect, which means another Senator will have to pick up the torch. I can’t share with you who it’s going to be just yet, but trust me when I say they will be a wonderful lead and are a true champion for cannabis reform!

A reintroduced MORE Act will likely have a good number of edits and changes, but the underlying intent of the bill will be the same: to remove cannabis from the Controlled Substances Act and help repair the harms the war on drugs has done — specifically to communities of color.

We also know that comprehensive reform, in general, has a better chance of advancing given that Democrats now control the Senate. Sen. Schumer (D-NY) was quoted in October as saying if he’s reinstalled as Majority Leader he “will put this bill in play,” and “I think we’ll have a good chance to pass it”, talking about his own bill, the Marijuana Freedom and Opportunity Act (S. 1552).

All of that being said, legalization, or the passage of comprehensive reform is far from a done deal. Legislation requires 60 votes for passage in the Senate, and we have a lot of hard work to do to get to that level of support in the upper chamber. In the House, Democrats have an even slimmer majority now than during the 116th Congress, so we also have to make sure we don’t lose support there.

What about appropriations?

You’ve been involved in cannabis for a long time if you remember when the appropriations process was the only way to get Congress to talk about this issue. But now, with Democrats controlling both chambers, you may be hearing more about these amendments again.

Appropriations bills are legislation in Congress that “appropriates,” or sets aside, federal funds to be divided between specific federal government departments, agencies, and programs. Read more about this process and why it matters for cannabis here.

Over the last few years, the House has continued to pass marijuana-related amendments but were unable to get through the Senate due to Republican control and a “gentleman’s agreement” between the Chair and Ranking Member of the Senate Appropriations Committee. But now, all of that will change.

In the past, appropriations amendments have been introduced that touch on a multitude of issues: research, veterans, medical and adult-use cannabis, hemp, banking… the list goes on! In this session, expect to see cannabis-related amendments included in the final budget. Just remember that budget bills must be passed annually, so anything that comes into law this way must be renewed again next year!

What’s going to happen at the committee level?

If you’re following cannabis policy at the federal level, definitely keep your eyes on what’s happening in various congressional committees. Given who controls both chambers, all of the committees will now be chaired by Democrats, which means you’re going to see a lot of cannabis-related bills come up for hearings and markups. Some I’ll be keeping my eye on, including both chambers’ appropriations, financial services, tax, and judiciary committees.

The opportunities for reforming our outdated cannabis laws have never been brighter than they are right now as we begin the 117th Congress. Bills are going to begin dropping left and right — and that’s because there’s a ton of excitement, enthusiasm, and optimism about what we can accomplish over the next two years.

Want to learn more about what’s possible? Make sure your company is an active member of NCIA and register for our next members-only webinar with our government relations team on Wednesday, January 27, or, if you can’t make it, hop on over to NCIA Connect to chat with us and learn more about what we’re working on in D.C.!

Action Alert: Protect State Cannabis Programs

In the coming days, the House of Representatives will vote on protecting adult-use cannabis businesses, consumers, and state programs from the federal government and we need your help now.

The Blumenauer-Norton-Lee-McClintock amendment states that no funds from the Department of Justice may be used to prevent any adult-use cannabis states from implementing their own laws that authorize the use, distribution, possession, or cultivation of cannabis. While the amendment didn’t make it into the federal budget last year, the House did approve it in a 267-165 vote.

This year, we’re working to increase that vote margin in the House in order to send a strong message to the Senate and the White House.

You can help us send that message by calling your Representative and tell them to VOTE YES on the Blumenauer-Norton-Lee-McClintock amendment to the Commerce, Science, and Justice appropriations bill.

Find your Representative by clicking here and check our Congressional Scorecard to see where your Representative stands on our industry’s issues!

Contact Your Representative Now!

Here are some talking points to guide your call:

- Since 2014, Congress has passed annual spending bills that have included a provision protecting medical cannabis businesses, patients, and programs from undue prosecution by the Department of Justice.
- The bipartisan Blumenauer-Norton-Lee-McClintock amendment simply expands those protections to include all state marijuana programs, including the 11 states that have legalized cannabis for adults over the age of 21.
- A similar amendment was approved by the House in last year’s appropriations process by a 267-165 vote.
- Today, more than one in five Americans reside in a jurisdiction where the adult use of cannabis is legal under state law.
- This amendment does not legalize marijuana at the federal level; it simply respects those states that have decided replace prohibition with a system of regulation.
- We urge you to VOTE YES on the Blumenauer-Norton-Lee-McClintock amendment to the Commerce, Science, and Justice appropriations bill.

Our industry supports hundreds of thousands of jobs, tens of millions in tax revenue, and billions in economic activity – so please, call and help us protect what we have built together.

VIDEO: June Policy Update With Aaron Smith, NCIA’s Executive Director

There’s been so much progress on cannabis industry issues so far this year. Hear more about the forward movement and victories we’ve seen in Congress on issues like the SAFE Banking Act, which has passed through the House of Representatives and is now in the Senate, and the House also voted to include protections for adult-use cannabis businesses in legal states through the Department of Justice budget vote process. Plus, Illinois becomes the 11th state to enact adult-use cannabis laws. NCIA’s Co-Founder and Executive Director Aaron Smith joins us to review this positive momentum.

Contact your elected officials today and ask them to support pro-cannabis reform legislation!

Cannabis Victories: Small Business Committee Hearing and Appropriations Progress

by Michelle Rutter, NCIA’s Government Relations Manager

Last week was arguably the biggest week for cannabis reform in Washington, D.C. — ever.

As we noted last week, the House Committee on Small Business held a hearing entitled “Unlocked Potential? Small Businesses in the Cannabis Industry.” The hearing allowed members of the Committee to learn about the opportunities the legitimate cannabis industry presents for small businesses in states with legal cannabis, as well as entrepreneurs from traditionally underserved communities. The hearing also discussed the challenges also faced by “ancillary” or “indirect” cannabis businesses.

The Chairwoman of NCIA’s Banking Access Committee, Dana Chaves, testified, as well as representatives from the Minority Cannabis Business Association (MCBA), the Veterans Cannabis Coalition (VCC), and The Heritage Foundation. In the testimony NCIA submitted for the record, we wrote, “[SBA] programs were specifically designed to stimulate economic activity and create jobs through small-business enterprises. Offering funding to the emerging regulated cannabis industry, which is mostly comprised of small businesses, would perfectly align with SBA’s primary objective to maintain and strengthen the Nation’s economy.” You can read NCIA’s full testimony here.

In addition to the hearing, there was a resounding, victorious Floor vote that put every single member of the House of Representatives on the record when it comes to cannabis.

Known as the Blumenauer-McClintock-Norton amendment, this provision that was added to the Commerce, Justice, Science, and Related Agencies (CJS) Appropriations Act of 2020, passed by a vote of 267-165 and would prevent any federal funds from being used to target state-legal cannabis programs. The vote was decisive: it had support from all but eight Democrats, and picked up 41 ‘Ayes’ from Republicans.

It is unclear whether or not the amendment will be included in Senate appropriations language, however, it will be an uphill battle. But, having the House of Representatives clearly say that adult-use cannabis programs, businesses, and consumers shouldn’t fear the Department of Justice kicking their doors down cannot be underestimated.

So, thank you to the nearly 2,000 NCIA members who made this victory possible by investing in our unparalleled lobbying team in Washington, D.C. Legislation like this doesn’t pass by itself — it’s a direct result of the forward-thinking members who support our work in D.C. We look forward to celebrating many more victories with you!

We Made History: U.S. House votes to protect cannabis businesses!

Today, the House of Representatives voted in favor of an amendment to the Commerce, Justice, State (CJS) Appropriations Bill that prevents federal interference in state cannabis programs. The NCIA team is beyond excited that we’ve made this incredible progress to protect all state-legal cannabis businesses, including adult-use operators.

This was an historic vote, and is the farthest reaching action Congress has ever taken to reform outdated federal marijuana prohibition policies.

Protections for state medical cannabis programs have been included in the federal budget since 2014. The amendment passed today — introduced by Rep. Earl Blumenauer (D-OR), Rep. Tom McClintock (R-CA), and Del. Eleanor Holmes Norton (D-DC) — would, for the first time, extend those protections to states and territories where cannabis is legal for adults. An additional amendment offered by Rep. Blumenauer that was also attached to the bill would also prevent federal interference in tribal cannabis laws.

I’d be remiss if I didn’t take this opportunity to express gratitude for the nearly 2,000 NCIA members who made this victory possible by investing in our unparalleled lobbying team in Washington, D.C. Legislation like this doesn’t pass by itself — it’s a direct result of the forward-thinking members who support our work in D.C..

If your business is not yet a member of NCIA, please join today in order to ensure we have the resources we need to build upon this momentum and finally enact federal legislation that will allow your business and our industry reach its full potential.

NCIA is the only organization with three full-time lobbyists in Washington, D.C. in addition to a well-connected professional advocacy firm. Michael, Michelle, and Maddy have been working the halls of Congress, fighting for state-legal cannabis businesses since long before it was vogue. We could not be more proud of our lobbying team, and we encourage you to follow their progress on these appropriations bills, as well as their important work on the SAFE Banking Act which is also expected to receive a vote in the weeks ahead.

Please also take a few minutes to call your Senators today and ask them to support legislation that would protect state cannabis laws. There is no time to waste because the Senate will be considering appropriations bills with similar marijuana provisions over the Summer. And keep your eye on more news from NCIA’s government relations team – the only full-time government relations team fighting for the legal cannabis industry in Washington.

Action Alert: YES on Blumenauer-Norton-McClintock Amendment #17

This week, the House of Representatives will vote on protecting adult-use cannabis businesses, consumers, and state programs from the federal government and we need your help now.

The Blumenauer-Norton-McClintock amendment states that no funds from the Department of Justice may be used to prevent any adult-use cannabis states from implementing their own laws that authorize the use, distribution, possession, or cultivation of cannabis.

Today, we need you to call your Representative and tell them to VOTE YES on the Blumenauer-Norton-McClintock amendment (#17) to the Commerce, Science, and Justice appropriations bill.

Find your Representative by clicking here and check our Congressional Scorecard to see where your Representative stands on our industry’s issues!

Contact Your Representative Now!

Here are some talking points to use on your call:

- Since 2014, members of Congress have passed annual spending bills that have included a provision protecting medical cannabis businesses, patients, and programs from undue prosecution by the Department of Justice.
- The bipartisan Blumenauer-McClintock amendment simply removes the word “medical” from that provision in order to protect those 11 states that have legalized adult-use cannabis for adults over the age of 21.
- We urge you to VOTE YES on Amendment #17 to the Commerce, Science, and Justice appropriations bill, which is the bipartisan Blumenauer-McClintock amendment.
- Today, more than one in five Americans reside in a jurisdiction where the adult use of cannabis is legal under state law.

Our industry supports hundreds of thousands of jobs, tens of millions in tax revenue, and billions in economic activity – so please, call and help us protect it.

End of Year Appropriations Deadline Looms

By Michelle Rutter, NCIA Government Relations Manager

As 2018 comes to an end, so does the 115th Congress. But, before the 116th Congress is sworn-in in January, an appropriations agreement must be reached before December 7, when the continuing resolution (CR) that is in place expires. That means if Congress doesn’t pass appropriations legislation by December 7, a partial government shutdown will occur.

Passing the bill in less than ten days will be an uphill battle. The President wants $5 billion appropriated towards a border wall and has threatened to veto the bill should it not include it. The Republican-controlled Senate has also asked for $1.6 billion worth of “pedestrian fencing” at the southern border. Should a shutdown occur, it will be the last chance for the President to win wall funding before Democrats take over the House majority in January.

There are a couple of different scenarios that could occur, but both bode well for cannabis advocates. First, Congress could pass another continuing resolution, which would include the current protections in place for medical cannabis patients, programs, and businesses. Alternatively, Congress could choose to pass an appropriations package that includes the Subcommittee on Commerce, Science, and Justice (CJS) bill, which also includes those same medical cannabis protections. Essentially, either way, medical cannabis protections remain in law.

This simple, one sentence appropriations amendment is the only thing standing in the way of the Department of Justice from prosecuting medical cannabis businesses and patients, and the process of getting it included into the federal appropriations bill every year can be incredibly difficult.

Moving into 2019, NCIA will continue to focus on ensuring that these protections remain in place, but also work to expand them to include adult-use cannabis businesses. In addition, NCIA will be using the appropriations process to advance other areas of cannabis policy, like curtailing the Treasury Department from prosecuting banks that choose to service the legal cannabis industry, and prohibiting the Department of Veterans Affairs from punishing veterans that choose to use cannabis in states where it’s legal.

All of these amendments will have good chances of passage in the Democratic-controlled House, but will face challenges in the Republican-controlled Senate.

The History of Appropriations

by Michelle Rutter, Government Relations Manager

Congress doesn’t spend much of their time on passing legislation, but one exception is how much time they spend on the nation’s annual spending bills. These bills, also commonly known as appropriations bills, are legislation in Congress that “appropriates,” or sets aside, federal funds to be divided between specific federal government departments, agencies, and programs.

Let’s take a look at the history of the appropriations process, and later, we’ll talk about how it all relates to cannabis.

Appropriations bills are one part of the larger federal budget and spending process. Congress’ ability to appropriate funds has its origin in the Constitution — Article I, section 9, clause 7 states that “No money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law…” The President still has the power to veto appropriations bills, however, they cannot choose which provisions to keep and which to delete — the Executive must either approve or disapprove of the entire bill.

Regular appropriations bills are passed annually, with the funding they provide covering one fiscal year. The fiscal year runs from October 1 to September 30 of the following year. For example, Fiscal Year 2019 (FY2019) will run from October 1, 2018, until September 30, 2019. Appropriations bills are created, amended, and passed initially by the House and Senate Committees on Appropriations, both of which have twelve matching subcommittees, each tasked with working on one of the twelve annual regular appropriations bills. Each of those twelve subcommittees deals with a different subject.

As Congress has become increasingly partisan, another type of appropriations bill, the continuing resolution (CR), has gotten much more popular. If a new fiscal year begins and Congress has not passed some — or all — of the regular appropriations bills, Congress can extend their funding authority from the previous year, with possible minor modifications, using a continuing resolution. Think of a CR as a “copy and paste” of the appropriations bill, with possibly a few other provisions added. If all twelve regular appropriations bills have been passed, a continuing resolution is unnecessary.

There are various points throughout the appropriations process where members of Congress may introduce amendments to the bill being considered. They may be introduced in committee by a member of either chamber’s Appropriations Committee, or they may be submitted to the powerful Rules Committee. In recent years, the Rules Committee has been overcome by partisanship and has essentially blocked the minority’s amendments. This has made it difficult for any topic that can even be considered as somewhat “controversial” to be addressed.

In next week’s installment, we’ll talk about how the appropriations process relates to cannabis policy and how NCIA has moved the dial in recent years. Stay tuned!

NCIA Update From Capitol Hill

NCIA’s team in Washington, D.C. and our allies in Congress have been busy advancing cannabis reforms on Capitol Hill over the last couple of weeks. The Congressional appropriations process for the FY2019 federal budget is well under way and cannabis has been at the center of some of the debates around government spending.

Last week, the Senate Appropriations Committee approved legislation that would renew protections for state medical cannabis programs when the current spending budget expires in September. The language, which was introduced by Sen. Patrick Leahy (D-VT), prevents the Department of Justice from using any resources to target medical cannabis patients or providers who are in compliance with state laws.

While this provision has been amended into the budget since 2014, this is the first time that this provision has been included in the original language of the spending bill by either chamber of Congress. Thanks to the hundreds of member-businesses that have invested in NCIA’s work on Capitol Hill over the years and the growing public support for national cannabis reforms, this policy is no longer a controversial issue for Congress.In fact, leading up to the Senate hearing, Sen. Lankford (R-OK) attempted to include a budget rider that would effectively nullify the medical cannabis protections but later withdrew it, citing lack of support.

Over on the House side, an amendment offered by Rep. David Joyce (R-OH) which would have restricted the Treasury Department from using tax dollars to sanction banks for providing financial services to the legal cannabis industry came very close to passing but ultimately did not make it into the budget package. NCIA is working with our allies in the Senate to include the banking protections in that chamber’s version of the federal budget in the days ahead.

Another champion for social justice and sensible cannabis policies, Rep. Barbara Lee (D-CA), introduced a first-of-its-kind resolution bringing attention to the racially discriminatory enforcement of marijuana prohibition. Lee’s Realizing Equitable & Sustainable Participation in Emerging Cannabis Trades (RESPECT) Resolution calls on states with legal cannabis to enact policies to ensure that people of color and communities that have suffered the most under prohibition policies have equal access to business opportunities within the emerging legal cannabis industry.

NCIA applauded Rep. Lee and the bipartisan group of lawmakers who are leading the charge on tackling this important issue.

Meanwhile, other nations may be surpassing the U.S. in enacting sensible marijuana policies. Just today, the Canadian Parliament passed legislation that would legalize adult-use cannabis for our neighbor to the North beginning in October 2018. For more information about how the U.S. cannabis industry risks falling behind other nations due to outdated federal laws, download NCIA’s recent white paper, “How the U.S. is Falling Behind in the Global Cannabis Market.”

Stay engaged with NCIA for more news about the advancement of federal cannabis reforms and to learn about how you can get more involved.

Another Budget Deal: What Does It Mean For You?

by Michael Correia, NCIA Director of Government Relations

Following a brief shutdown in the wee hours of Friday morning, Congress came to yet another short-term budget deal to continue funding the federal government until March 23, 2018.

In normal budget cycles, Congress passes a fiscal year budget that goes from October 1 until September 30. But in these extraordinarily partisan times, Congress has been unable to agree on an annual budget and has patched together short-term funding bills called Continuing Resolutions (CR’s), which maintains current funding levels. Since just last September, there have been five such short-term CR’s. These short-term funding bills have not only hampered basic government functions, but have also affected military readiness and has even led to a federal government shutdown, which has lowered the public’s already dismal opinion of Congress.

After much negotiation between House and Senate leaders, it appears that the parameters of a two-year budget solution have been agreed to. The new budget deal is both bipartisan and bicameral (which has become a rarity in Washington, D.C.) and addresses many controversial issues that have hindered previous negotiations. This new budget deal increases funding levels for the military, provides billions in disaster relief, addresses infrastructure, education, child care, and attempts to combat the opioid epidemic.

But, in typical Congressional fashion, the details still have yet to be finalized. The Congressional Leaders have agreed to work with the leaders of the appropriations committees to ensure that all budget priorities are met.

So, what does this mean for your business and what does this mean for medical cannabis protections?

Since 2014, the federal budget has included language that protects medical cannabis operators from Department of Justice prosecution. These protections will be maintained in this short-term funding bill, so medical cannabis programs and businesses are protected until at least March 23, 2018. However, it is imperative that Congress maintains these protections (and even expand protections for adult-use) in the longer budget that is being negotiated between now and March 23. NCIA will continue our Congressional lobbying efforts and work with our partners and other advocates to continue these protections.

As with anything, if you need further clarification or have questions, please contact our Government Relations office.

Our team in Washington, D.C., works everyday to make the industry’s voice heard, but nothing matches the power of a personal story personally told. Remember to join us for NCIA’s 8th Annual Cannabis Industry Lobby Days this year on May 21-23 in Washington, D.C.

Video: Cannabis Amendments Blocked in Appropriations – now what?

In a late-night vote on Thursday September 6th, the House Rules Committee blocked a full house vote on all cannabis-related appropriations amendments.

Fortunately, Congress passed a Continuing Budget Resolution which does keep the Rohrabacher medical marijuana protections in the budget until December 8th of this year, and more importantly for the long term, those protections currently included in the Senate’s Appropriations bill for the next fiscal year so Congress still has a chance to protect patients and state-legal cannabis businesses in conference committee.

What can you do? Watch the video to hear more from NCIA’s executive director Aaron Smith.
And log on to www.thecannabisindustry.org/SupportLeahy to contact your Senators!

The Future of Medical Cannabis Reform – Now What?

by Michelle Rutter, NCIA Government Relations Manager

Late in the evening of September 6th, the House Rules Committee held a hearing to discuss amendments to the upcoming appropriations bill that will fund the federal government for the upcoming fiscal year. The Rules Committee is used by House leadership to maintain control over the House floor, and is heavily stacked in favor of the majority party (by a 2:1 ratio).

Unfortunately, the committee decided not to allow the Rohrabacher-Blumenauer amendment (formerly the Rohrabacher-Farr amendment) to move forward for a vote on the Floor. Despite the fact that 46 states have legalized some form of cannabis, 90% of the public supports medical marijuana, and over 70% think the federal government should not interfere with state marijuana reforms, the Rules Committee singlehandedly decided to strip out the language protecting states’ medical marijuana laws that have been in law since 2014.

Although this came as no surprise, it is still disappointing. So, what’s next going forward? There are a couple of possible scenarios.

Scenario 1: In July, the Senate Appropriations Committee passed an amendment offered by Vice Chairman Patrick Leahy (D-VT) by a voice vote. The Leahy amendment is identical to the Rohrabacher-Blumenauer amendment and would protect medical cannabis businesses and patients for another year. If this legislation passes the Senate, the opportunity still exists for Congress to reconcile the differences and agree to maintain the current protections in medical cannabis states.

Scenario 2: There are rumors circulating that Congress will pass a funding bill for Hurricane Harvey relief and that this bill would include a debt ceiling increase and continue funding the federal government through mid-December. If this happens, the Rohrabacher-Farr amendment will continue to protect medical cannabis patients and businesses until a new appropriations bill is passed.

Scenario 3: Neither the House or the Senate agree to maintaining this provision, and Congressional protections for states’ medical cannabis laws disappear in the short term. Although this is the worst scenario of the three listed here, the opportunity still exists for Congress to re-insert this provision during next year’s budget negotiations.

NCIA will continue to advocate and communicate with Members of Congress on the behalf of the cannabis industry. While the House Rules Committee has made a disappointing decision, there is still hope that the Rohrabacher-Blumenauer/Leahy amendments will be included in federal law for yet another year. As we continue to represent our member-businesses, we will be vigilant in our efforts to bring about the best possible positive outcome in the current political climate.

Top 5 Amendments To Watch For In Congressional Committee Next Week

by Michelle Rutter, NCIA Government Relations Manager

Every year, Congress must pass appropriations legislation to fund the government for the upcoming fiscal year. This annual budget bill, which is currently set to expire on September 30th, has been one of the only avenues by which pro-cannabis reform language can be inserted into federal law– even if only for a year at a time.

But, like most things in Washington, D.C., the appropriations process is lengthy, complicated, and chock full of procedure.

Early next week, the House Rules Committee will hold a hearing to discuss amendments to the upcoming appropriations bill that will fund the government for FY2018. The Rules Committee is used by leadership to maintain control over the House floor, and is heavily stacked in favor of the majority party (by a 2:1 ratio). Despite that, over a dozen cannabis related amendments have been filed and submitted by various members of Congress, but it is up to the Rules Committee to determine which provisions will be ruled “in order.” Let’s take a look at a few of the amendments that, if passed, could significantly affect the cannabis industry:

Rohrabacher-Blumenauer Amendment: This provision, formerly known as the Rohrabacher-Farr amendment, has been included in the federal budget since 2014. The amendment bars the Department of Justice from interfering with states’ medical cannabis laws and businesses. Those protections will expire on September 30th if this amendment is not renewed. The amendment has 12 cosponsors: seven Republicans and five Democrats.

McClintock-Polis Amendment: First introduced in 2015, this amendment would ban the Department of Justice from interfering with states’ adult-use cannabis laws and businesses. When voted on in 2015 on the House floor, the amendment narrowly failed.

Heck Amendment (1): This amendment would protect financial institutions that choose to service the cannabis industry from interference from the federal government. The provision protects banks in adult-use states, medical cannabis states, and CBD-only states.

Heck Amendment (2): The second cannabis related amendment introduced by Congressman Heck would prohibit any changes to the guidance issued by the Financial Crimes Enforcement Network titled “BSA Expectations Regarding Marijuana-Related Businesses.”

Heck Amendment (3): Similar to the second Heck amendment, this provision would prohibit the Department of Justice from revoking the guidance issued by the Financial Crimes Enforcement Network titled “BSA Expectations Regarding Marijuana-Related Businesses.”

It is important to note that in recent years, House Republicans have essentially shut down the appropriations process by not allowing any controversial amendments (including cannabis) to be ruled “in order”. Just a few months ago, the Rules Committee blocked a measure that would have allowed Veterans Affairs physicians to talk to their patients about medical cannabis in states where it’s legal. Should this happen next week, NCIA will be working closely with our allies and Members of Congress to ensure that the Senate’s version of the budget bill, which does include the Rohrabacher-Blumenauer amendment, is passed into law.

Navigating Congress and all of its procedural quirks can be stressful and difficult, but that’s what NCIA is for. Stay tuned for updates on appropriations throughout September as we continue to watch this process unfold.

Breaking It Down: Appropriations

by Michelle Rutter, NCIA Government Relations Coordinator

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Every year, Congress must pass appropriations legislation to fund federal government operations for the upcoming fiscal year. This annual funding bill has been one of the only avenues by which pro-cannabis reform language can be inserted into the federal budget, due to Congress’ inability to pass meaningful stand-alone legislation addressing the legal cannabis industry.

The Appropriations Committees have always been two of the most influential committees in Congress, since the Committees’ power is derived from its ability to disburse funds. The House Appropriations Committee is currently chaired by Rep. Hal Rogers (R-KY), with Rep. Nita Lowey (D-NY) as the highest-ranking Democratic member, and the Senate Appropriations Committee is chaired by Thad Cochran (R-MS) with Barbara Mikulski (D-MD) as the ranking Democrat.

Because it is unlikely that Congress will enact stand-alone pro-cannabis legislation this session, NCIA has decided to focus intensely on the appropriations process this year. In addition to making sure that the Rohrabacher-Farr medical cannabis amendment passes for the third year in a row, NCIA will be focusing on getting amendments included in the final budget bill that pertain to banking access and that protect all state-compliant cannabis businesses, not just medical ones. The continued inclusion of the Rohrabacher-Farr amendment in the final budget bill is crucial to cannabis policy moving forward into a new administration. We at NCIA want to ensure that this amendment is seen as non-controversial as we go into FY2017.

Over the years, the budget process in Washington, D.C. has become broken and it has become harder for Congress to perform basic functions. New Speaker of the House Paul Ryan (R-WI) has thrown his support behind returning to “regular order” in the budget process – meaning that Congress would return to the piece-by-piece appropriations process rather than passing large omnibus budget bills as has been the case in recent years. Although the Speaker has good intentions, small groups and caucuses in the House of Representatives are unhappy with the spending levels proposed in many of the new appropriations bills, making it more likely that an omnibus bill will again be passed, despite Speaker Ryan’s desire to return to regular order.

This “regular order” of the appropriations process usually starts in February as various pieces of legislation works its way through the Appropriations Committee and finally to the House/Senate Floor. Congress typically starts with less controversial bills in April and then works through the spring and summer months until all appropriations bills are completed. Legally, they need to be completed by September 30th (as October 1st is the start of the new fiscal year). Regular order gives NCIA multiple opportunities to insert pro-cannabis amendments into the legislation. With an omnibus or stopgap bill, it becomes much more difficult to include pro-cannabis amendments.

In Years Past

Last year, there were two pro-cannabis amendments included in the Commerce, Justice, and Science Appropriations bill that made it into the final budget: the Bonamici-Massie industrial hemp amendment and the Rohrabacher-Farr medical marijuana amendment. The Bonamici-Massie amendment blocks federal money from being used to prevent states from allowing the use, distribution, possession, or cultivation of industrial hemp. This means that the federal government cannot use federal funds to enforce federal law against state-compliant businesses dealing with hemp. This measure passed the House of Representatives overwhelmingly: the vote was 282-146, with 101 Republicans voting in favor.

The second pro-cannabis amendment in the FY2016 budget was the Rohrabacher-Farr medical marijuana amendment, which was included for the second year in a row. This amendment bans the Department of Justice from spending money to prevent the implementation of state-level medical cannabis programs, in addition to removing funding for federal medical cannabis raids, arrests and prosecutions in states where medical cannabis is legal. The vote count increased from 219-189 in 2014 to 242-186 this year, with 67 Republicans voting ‘Yes’. Just like the Bonamici-Massie hemp amendment, the Rohrabacher-Farr amendment prohibits the Department of Justice from enforcing federal law against state-legal medical cannabis businesses.

Remember…

It’s crucial to remember that these appropriations amendments only pertain to the current fiscal year and have to be voted on and renewed every year. The NCIA team and our lobbyists in Washington, D.C., are working intently with appropriators and other Members of Congress to ensure that pro-cannabis amendments and provisions are included in the federal budget this year – whether that be through “regular order” or otherwise.

Want your voice heard in our nation’s capitol on issues affecting the cannabis industry? Join us for our 6th Annual NCIA Member Lobby Days in Washington, D.C., on May 12 & 13, 2016.

To make the most out of the Lobby Days experience, register early so that we can begin the process of setting up meetings for you on the Hill. Members who register before April 30th will be entered to win admission and travel expenses for two at NCIA’s Cannabis Business Summit & Expo, including airfare and lodging.

Appropriations Pros and Cons in 2015 for Cannabis

by Michelle Rutter, Government Relations Coordinator

Every year, Congress must pass appropriations legislation to fund the government for the upcoming fiscal year. This annual funding bill has been one of the only avenues by which pro-cannabis reform language can be inserted into the federal budget, due to Congress’ inability to pass meaningful stand-alone legislation addressing the legal cannabis industry.

This year, two riders were included in the budget bill pertaining to cannabis. The first, known as the Rohrabacher-Farr amendment, bans the Department of Justice from spending money to prevent the implementation of state-level medical cannabis programs, in addition to removing funding for federal medical cannabis raids, arrests, and prosecutions in states where medical cannabis is legal. When debated on the House floor this summer, the vote count increased from 219-189 in 2014 to 242-186 this year, with 67 Republicans voting ‘Yes.’ The Rohrabacher-Farr language was included in the final budget bill for the second year in a row, which is a promising sign of progress in Washington, D.C.

A rider known as the Bonamici-Massie amendment, which prevents the DEA from intervening with state-sanctioned and legal hemp, was also included in the final budget package. This section blocks federal money from being used to prevent states from allowing the use, distribution, possession, or cultivation of industrial hemp. It’s important to note that although this progress is promising, the DEA has ignored appropriations language pertaining to cannabis in years prior.

There were other commonsense policy reforms related to cannabis, which were proposed and added to earlier versions of the budget package, but which unfortunately did not make it into the final bill. A crucial example was a provision which would have prevented the Treasury Department from punishing banks that work with legitimate marijuana-related businesses. Another would have allowed Veterans Affairs (VA) doctors to recommend medical cannabis to veterans without fear of retaliation or punishment, and would have also prevented the VA from denying services to any veteran who is a medical marijuana patient.

An additional disappointment in the final budget package was the continuation of language from the previous year which blocks the adult-use sale and purchase of cannabis in Washington, D.C.

It’s important to remember that these appropriations amendments only protect states’ medical cannabis and hemp laws for the upcoming fiscal year and have to be re-included and voted on every year. While this progress is encouraging, it falls short of achieving our goals. NCIA will continue lobbying on behalf of the cannabis industry to achieve the substantive and lasting reforms that our businesses deserve.