by Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations
Over the last several weeks, I’ve been taking a retrospective look at the progress NCIA has made in the ten years since its inception. This is our last installment, detailing 2018-2019, and brings us up to 2020 (the year that shall not be spoken of). While this timeline is by no means a comprehensive look at everything that’s happened in cannabis policy during those years, here are some highlights:
January 2018
On January 4, 2018, then-Attorney General Jeff Sessions declared in a one-page memo that he had rescinded the Cole Memo, a similar memo related to cannabis activity on tribal land, and two other older memos. Sessions directed U.S. Attorneys to instead “follow the well-established principles that govern all federal prosecutions,” which require federal prosecutors to “weigh all relevant considerations, including federal law enforcement priorities set by the Attorney General, the seriousness of the crime, the deterrent effect of criminal prosecution, and the cumulative impact of particular crimes on the community.”
February 2018
This month was filled with the political fallout of the rescission of the Cole Memo. First, a letter was written by the U.S. Treasury Department’s assistant secretary for legislative affairs to Congress that said, “We are reviewing the [cannabis banking] guidance in light of the Attorney General’s announcement [to rescind the Cole Memo] and are consulting with law enforcement”. Then, following Sen. Gardner’s (R-CO) decision to block the Department of Justice’s nominees over the rescission of the Cole Memo in January, he released his holds on nominees for U.S. attorneys in a dozen federal districts and U.S. marshals in every district. Holds continue on the nominations of seven top Department of Justice nominees.
March 2018
In March, Attorney General Sessions spoke at an event where he acknowledged that the Department of Justice cannot use its limited resources to enforce cannabis prohibition against everyone who violates federal marijuana laws. He said, “We’re not going to be able, even if we desired, to take over state enforcement of routine cases that might occur.”
April 2018
The Trump administration officially began accepting online comments about whether marijuana should be rescheduled under international agreements. That same month, U.S. Senate Majority Leader Mitch McConnell (R-KY) filed a hemp legalization bill.
May 2018
The U.S. Small Business Administration (SBA) quietly issued a document saying that businesses that work with the marijuana industry aren’t eligible for federally backed loans. Fast forward to 2020, this document is largely what prohibited both direct and indirect marijuana businesses from receiving PPP money or federal assistance due to the COVID-19 pandemic.
June 2018
Senators Elizabeth Warren (D-MA) and Cory Gardner (R-CO), introduced the Strengthening the Tenth Amendment Through Entrusting States (STATES) Act. Shortly thereafter, President Trump was asked if he supports new Senate legislation to let states set their own marijuana laws without federal interference, to which he replied, “I really do. I support Senator Gardner. I know exactly what he’s doing. We’re looking at it. But I probably will end up supporting that, yes.” The STATES Act has never had a congressional hearing or moved in any way through the legislative process.
July 2018
In a slight change of tone, U.S. Attorney General Jeff Sessions said that “states have a right to set their own laws and will do so” but that “the American republic will not be better if there are marijuana sales on every street corner” and “we’ll [Department of Justice] enforce the federal law.”
August 2018
A group of the top financial regulatory officials from 13 states sent a letter urging congressional leaders to solve the marijuana industry’s banking access issues. The regulators wrote, “It is incumbent on Congress to resolve the conflict between state cannabis programs and federal statutes that effectively create unnecessary risk for banks seeking to operate in this space without the looming threat of civil actions, forfeiture of assets, reputational risk, and criminal penalties.”
September 2018
NCIA worked with Congressman Lou Correa (D-CA) to send a letter to the Department of Homeland Security Secretary Kirstjen Nielsen that urges the department to develop clear guidance concerning the entry into the United States of foreign nationals with authorized work visas who are associated with the cannabis industry.
October 2018
Well-known pollster Gallup found that sixty-six percent of Americans now support legalizing marijuana. Support has remained near that number to the present.
November 2018
This month, midterm elections were held, and a number of states voted on setting their own cannabis policies. Residents of Michigan and North Dakota both voted on adult-use measures, one passing and one failing, respectively. Additionally, Utah and Missouri both passed medical cannabis ballot initiatives. While the Senate remained in control of the GOP, the House of Representatives switched from a Republican majority to a Democratic majority.
December 2018
Congress passed the 2018 Farm Bill which included hemp legalization. The bill did not create a completely free system in which individuals or businesses can grow hemp whenever and wherever they want — there are numerous restrictions — and the programs are still being adjusted today.
January 2019
The 116th Congress was sworn in and quickly filed a number of cannabis-related bills, including:
H.R. 420: Regulate Marijuana Like Alcohol Act, H.R. 493: Sensible Enforcement of Cannabis Act, and H.R. 127: Compassionate Access, Research Expansion, and Respect States (CARERS) Act of 2019
February 2019
In February, the Subcommittee on Consumer Protection and Financial Institutions held its first-ever hearing on marijuana and financial services, entitled: Challenges and Solutions: Access to Banking Services for Cannabis-Related Businesses. Up for discussion was the Secure and Fair Enforcement (SAFE) Banking Act.
March 2019
Quickly following the subcommittee hearing, the House Financial Services Committee scheduled a full markup for the SAFE Banking Act. The bill passed out of committee with a bipartisan vote of 45-15.
April 2019
During a House appropriations subcommittee hearing, several lawmakers asked Treasury Secretary Steven Mnuchin about what could be done to provide state-legal cannabis businesses with access to financial institutions. Mnuchin replied, “Let me just say, I hope this is something that this committee can on a bipartisan basis work with since there are people on both sides of the aisle that share these concerns. I will just say I don’t believe this is a failure of the regulators. I want to defend the regulators on this issue.”
May 2019
NCIA hosted our 9th Annual Cannabis Industry Lobby Days, bringing hundreds of professionals to Washington, D.C. Over the course of 48 hours, attendees met with nearly 300 congressional offices to share their stories and experiences and dropped off informational materials to 200 offices that we did not schedule meetings with. In addition to these meetings, we had two briefings, held a PAC fundraiser, and hosted our first-ever VIP Day for members of our Leadership Circle.
June 2019
In June, the Senate Banking Committee held a hearing entitled “Challenged for Cannabis and Banking: Outside Perspectives.” NCIA was proud to have Sen. Jeff Merkley introduce for the record the testimonials of nearly 100 NCIA members during the hearing.
July 2019
The Subcommittee of the House Judiciary Committee held a hearing on ending cannabis prohibition in America. The hearing, entitled “Marijuana Laws in America: Racial Justice and the Need for Reform” will focus on the need to deschedule cannabis, the importance of equity, diversity, inclusivity in this burgeoning industry, and will also cover issues pertaining to cannabis and public health, law enforcement, and the failings of prohibition.
August 2019
When President Trump was asked at the end of August whether or not marijuana will be federally legalized during his administration, he said, “We’re going to see what’s going on. It’s a very big subject and right now we are allowing states to make that decision. A lot of states are making that decision, but we’re allowing states to make that decision.”
September 2019
For the first time in history, a standalone cannabis policy reform bill was brought before the House of Representatives for a vote and passed with an overwhelming bipartisan majority. The Secure and Fair Enforcement (SAFE) Banking Act of 2019, or H.R. 1595, was approved 321-103, including nearly half of voting Republicans, in a suspension vote.
October 2019
The U.S. Tax Court ruled this week that the tax code ban on business deductions by medical marijuana companies is constitutional. The case is Northern California Small Business Assistants Inc. v. Commissioner of Internal Revenue, docket number 26889-16.
November 2019
In a vote of 24-10, the House Judiciary Committee approved a bill that would effectively end marijuana prohibition. The Marijuana Opportunity Reinvestment and Expungement (MORE) Act of 2019, or H.R. 3884, was introduced by House Judiciary Committee Chairman Jerrold Nadler (D-NY) and has been moving through the legislative process steadily. The MORE Act is anticipated to be voted on by the full House of Representatives this month.
December 2019
The Federal Reserve released guidance allowing banks to work with the hemp industry. Financial institutions are no longer required to file suspicious activity reports on customers operating a hemp business.
It’s been a wild ride to look back at the last 10 years of NCIA, and we are looking forward to serving you and your business for another 10 more!
Our Members in Action at NCIA’s 2018 Cannabis Industry Lobby Days
by NCIA Editorial Staff
The cannabis industry has seen exponential growth in the mainstream support for regulated cannabis markets from both sides of the political aisle. This progress is a direct result of the relationships NCIA has built on Capitol Hill, as well as the personal stories told by our members each year at our annual Lobby Days events in Washington, D.C. NCIA’s 8th Annual Cannabis Industry Lobby Days, hosted May 21-23, was the industry’s most impactful fly-in yet, as our members made more inroads to Congress at a time when the nation has reached a tipping point in the fight to protect legal cannabis.
“So many more people keep coming to Lobby Days which is amazing to see,” said Karson Humiston, founder of Vangst. She’s one of Forbes’ 30 under 30 and the only female in cannabis to make the list. She’s focused on telling members of Congress about the potential for job creation and the economic impact of a fully recognized cannabis industry. “We are talking about jobs as much as possible in order to educate members of Congress about the economic stimulation regulated cannabis is bringing to the states and the need for federal legalization,” she said.
NCIA announced the release of its 2018 State Cannabis Progress Report during this year’s Lobby Days. The publication outlines a myriad of economic and social benefits already being realized by states with successful cannabis programs, including job creation, tax revenue, and reductions in crime and teen use.
So far 2018 is shaping up to be much different from the past seven years, largely because of Republican backlash against Attorney General Jeff Sessions attempting to ramp up federal interference in state cannabis programs by rescinding the Cole Memo. Historically, the GOP has been less publicly supportive of reforming cannabis laws, although there has been a strong current of support among certain segments of the party. Now, they listen and many have even joined us in support of banking and tax reforms needed for our industry to reach its full potential, in addition to their traditional support of federalism issues related to cannabis. Advocates, patients, and NCIA member-businesses all over the United States are keeping this positive momentum going.
At the Lobby Days welcome reception on the evening of Monday, May 21, NCIA Executive Director Aaron Smith said he was delighted with the turnout. “There are so many new faces, so many old friends, and Lobby Days veterans,” he told the audience of cannabis professionals, who had just arrived in Washington prior to the two full days of meetings with congressional offices. “Starting tomorrow, we will descend upon Capitol Hill to show lawmakers what a responsible, politically engaged cannabis industry looks like.” He called Lobby Days one of the cannabis industry’s most important events of the year.
NCIA member and founder of Washington, D.C.’s National Cannabis Festival and the National Cannabis Policy Summit, Caroline Phillips, said that she was proud to see so many members coming to her backyard to demonstrate their unity. “This is a really wonderful opportunity to share with members of Congress the diverse and innovative ideas of the cannabis industry and to show off the professionalism, creativity, and care that the people in the industry put into their work, “she added. “I think a lot of members on the Hill are starting to understand the cannabis industry is a lot more than just stereotypes, and for them to have one-on-one interactions with some of the best professionals in our industry is extraordinarily valuable.”
New to Lobby Days was Attorney Blake Mensing. He was eager to join the crowd of professionals to advocate for the fair treatment of cannabis businesses. “I think that this is the eighth year that this is happening really shows that the industry is coming out of the shadows and the momentum has built to the point that there’s a small probability that things are going back to the way they were [prior to the reform victories of the last decade].” Mensing founded The Mensing Group after he left his job as a Municipal Attorney in Massachusetts to start a cannabis-only practice. “It’s the first time I’ve ever had fun being a lawyer,” he remarked before heading into Senator Orrin Hatch’s (R-UT) office.
Professional football player Mike James also joined NCIA this year to advocate on behalf of his fellow athletes who would prefer to treat their health issues with medical marijuana instead of opiates. The active NFL running back has played for the Tampa Bay Buccaneers and the Detroit Lions during his career, which has wreaked havoc on his body, leaving him with chronic pain that he used to treat with opioids. “Within the NFL, I’m trying to go through their process and change policy. That way, hopefully, they can be an example for society,” he said. Currently a free agent, he’s the first and only active player with a medical marijuana card.
From the need to expand medical access to cannabis, to tax and banking reform, to addressing the injustice of racially disproportionate marijuana enforcement, NCIA hit the Halls of Congress to educate members of Congress and their staffs on what’s happening in their own backyards and the successes of regulating cannabis.
For example, when it comes to tax reform, Heather Sullivan of 3C Consulting said the cash-flow is only one of the issues they have to worry about from the 280E tax burden. “It’s a tough decision come tax season,” she said. “Do you set aside those tax rates so you don’t have that money to use for other things for your business, or do you play the game and run the risk that you’re not going to get audited?” Many cannabis businesses face similar issues, which can effectively ruin a company over time.
There were many Congressional offices that were receptive to the efforts and positions of NCIA members during Lobby Days. Heather took a meeting with Sen. Bernie Sanders’ (I-VT) office, for example, and after leaving the meeting she felt that it went wonderfully, stating, “Senator Sanders is a proponent for the safe and regulated use of cannabis whether in the medical side or the adult use side, so it was a meeting that for us was an opportunity to tell Bernie and his staff how much we appreciate the hard work that he’s done, ask him what we can do as an industry to help them continue the progress that they’ve already made and learn more about where his focus is.” Sullivan is well-versed in the issues facing cannabis businesses today and knows many other officials are still in need of convincing.
In spite of heavy opposition from Attorney General Jeff Sessions, as well as House leadership, the cannabis industry saw a huge victory when protections for medical marijuana were included in this years’ fiscal budget. Now, with the help of our members who flew in to speak about their personal issues and experiences, we can all look forward to an even more progress and a better outlook for the U.S. cannabis industry.
Why it’s Critical For Cannabis Business Owners to Advocate for Policy Reform
by Rachelle Lynn Gordon, NCIA Editorial Contributor
Cannabis legalization reform has been in the works for years and will certainly continue for years to come due to the plant’s Schedule I status. In addition to the activists and organizations who have paved the way for marijuana legalization for decades, such as NORML, Marijuana Policy Project, and Students for Sensible Drug Policy (SSDP), cannabis business owners are now at the forefront of what will most certainly be a multi-billion dollar industry within a short matter of time. But why is it important for these cultivators, dispensary owners, and investors to be directly involved with legalization advocacy?
“Advocacy is critical at this stage, where there is still so much progress to be made at the state and federal levels,” says David Murét, Co-founder & COO of Viridian Staffing. “While I believe that national legalization is now a foregone conclusion, the form in which it takes and who it will end up benefiting is still an open question.”
At this point in time, 30 states and the District of Columbia have legalized medical and/or adult-use cannabis, each one with their own set of rules and regulations. As more and more states begin to come online and design their own programs, lawmakers will look to states where cannabis is already legal in order to learn from both successes and mistakes. At the federal level however, things are far more complicated.
While marijuana remains an illegal drug in the eyes of the federal government, certain protections are in place for businesses that are operating in compliance with their own states’ regulations. Several members of Congress representing these states have been pushing for even further protections and/or straight legalization, in spite of current Attorney General Jeff Sessions’ staunch anti-cannabis stance. In January, Sessions rescinded the Cole Memo, which had previously stated that federal funds shall not be directed towards enforcing federal cannabis policy within states that have passed for those operating in compliance with the items stated in the memo. However, this doesn’t mean that state prosecutors have to go after compliant businesses
Fortunately, the move was a moot point. A rider bill in the federal budget proposal, which is essentially a must-pass in order to prevent a government shutdown, maintained the protections that the Rohrabacher-Farr amendment (now Rohrabacher-Blumenauer amendment), which prevents the DOJ from going after state-legal medical cannabis. A bipartisan group of 62 members of Congress sent a letter to House appropriations leaders calling for action.
“We respectfully request that you include language barring the Department of Justice from prosecuting those who comply with their state’s medical marijuana laws,” the lawmakers, led by Reps. Dana Rohrabacher (R-CA) and Earl Blumenauer (D-OR), wrote. “We believe such a policy is not only consistent with the wishes of a bipartisan majority of the members of the House, but also with the wishes of the American people.” These protections are now included through September 30th.
David Sutton, President & COO of NanoSphere Health Sciences, agrees that time is of the essence in order to create new legislation that will positively impact the industry in years to come.
“Cannabis business owners and professionals have to participate in advocacy,” he argues. “No matter how many states adopt some form of cannabis legalization, the industry still needs change at the federal level. Without a federal shift in cannabis policy, operators in the industry will remain hampered and handcuffed from growth.”
Many canna-business owners are not only involved with pro-legalization policy efforts with the industry’s future in mind, but also the end consumers. High-profile cases of medical marijuana patients becoming ill due to flower containing mold and instances of widespread pathogen prescences from certain cultivators have increased efforts to prevent these products from getting to market.
“We have a responsibility to ensure this business grows in the right way,” explains Brett Johnson, Founder & CEO of Spectrum-Gro. “We have to be the adults in the room. I am always advocating for the end users – we need to guarantee safe and consistent products that are free from harsh chemicals and other pathogens. If the current leaders in this industry do not advocate for the future, there could be negative results across the board – from cultivation to the consumer.”
There are many ways business owners and professionals within the cannabis space to get involved with advocacy. NCIA Lobby Days brings hundreds of industry professionals and thought leaders to Washington, D.C. in order to tell their stories to lawmakers and push for cannabis reform. In addition, working with local organizations within their own states and jurisdictions is a wonderful way for entrepreneurs to spread awareness and potentially help build legislation in their communities.
“If we want to see how big the industry could be and how many lives can be changed for the better, you cannot simply rely on just hope, everyone needs to act,” adds Sutton. “Change comes from the masses and the masses need each and every owner and professional to participate in industry advocacy.”
Rachelle Lynn Gordon is a Minneapolis-based writer and reporter and graduate of Hamline University. She has contributed to publications such as Cannabis Now Magazine and High Times.
Member Blog: “Death Penalty for State-Legal Marijuana Businesses” Is a Good Headline; It’s Not the Real Takeaway
In recent days, and for the second time in 2018, the state-legal cannabis industry is abuzz over a new memo issued by Attorney General Sessions. Having revoked the Cole Memo in a January memo, the Attorney General’s latest memo addresses the use of capital punishment in drug cases. Notably, he urges federal prosecutors to consider the death penalty in drug cases—including in circumstances that facially could include the operation of large-scale state-legal marijuana businesses regardless of compliance with local rules.
There’s no doubt “Sessions to Execute Legal Industry Members” makes for an eye-catching headline, but it’s time to pour some cold water on the hype: It’s highly unlikely that federal prosecutors would ever bring such a death penalty case. And even if prosecutors brought such a case, it’s even more unlikely that they could convince a jury to impose a death sentence that would stand up on appeal.
Given the fervor over this news, it’s worth explaining why the death penalty shouldn’t be keeping rule-following business owners up at night. But stepping back from the sensationalized headlines, it’s also worth considering what the real takeaway from the memo should be.
First, the prospect of a federal prosecutor seeking the death penalty against an individual for conduct she committed pursuant to a state-issued license and in conformance with a state-promulgated regulatory system are exceptionally low. Ask anyone who has actually interacted with federal prosecutors (and not just seen Goodfellas or American Hustle): Federal prosecutors are, unfailingly, exceptionally dedicated public servants who care above all about wielding their powers fairly and judiciously and getting the result right. They want to prevent serious crimes and put away threats to public safety. The idea that they would seek the death penalty against the owner of a state-licensed marijuana business operating in strict compliance with those rules is farfetched. After all, by their very conduct those individuals are demonstrating their ability to abide by the rule of law.
Certainly, Attorney General Sessions is not a fan of the state-legal marijuana industries. But it is an incredible leap to believe that he intends to have prosecutors seek the death penalty in such cases. As the memo says, the Attorney General “encourage[s]” prosecutors to seek the death penalty “when appropriate.” There has been no indication to date that Attorney General Sessions or any other federal prosecutor believe the death penalty is “appropriate” for a rule-following licensed cultivator in Colorado or retailer in Nevada.
Second, even assuming a hypothetical prosecutor brought such a case and secured a conviction for the underlying offense, they would still have significant constitutional hurdles. As an initial matter, under the Sixth Amendment, those prosecutors would need to convince a jury in the state where the conduct occurred (and is licensed) that sufficient aggravating factors existed to impose the death penalty. Without getting too deeply into the legal weeds, the U.S. Supreme Court reiterated in 2016’s Hurst v. Florida that before a defendant can be sentenced to death, he has “right to have a jury find the facts behind his punishment.” Convincing a jury of the defendant’s peers in a state where the conduct is legal that the defendant’s conduct warrants the punishment of death would be a tall task for any prosecutor.
Moreover, even assuming prosecutors secured a death sentence from the jury, any defendant would immediately appeal asserting that such a punishment violates the Eighth Amendment’s prohibition on cruel and unusual punishment. As the Supreme Court reiterated in 2008’s Kennedy v. Louisiana, punishment for a crime must be graduated and proportionate to the offense under currently prevailing societal standards. That is a heavy burden for conduct that is licensed and regulated in the defendant’s home state. Particularly daunting for the prosecution is the fact that the proportionality inquiry includes consideration of which states permit execution for the offense. In this hypothetical case, the conduct in question is (1) not a capital offense in the defendant’s home jurisdiction, (2) not illegal in the defendant’s home jurisdiction, and (3) actually licensed and regulated by the defendant’s home jurisdiction.
So, if rule-abiding business owners shouldn’t spend sleepless nights waiting for a death penalty prosecution, what should they conclude from this memo? Foremost, they should recognize that their efforts to comply with state rules on marijuana are more essential than ever.
The Attorney General’s memo makes plain that federal prosecutors will aggressively pursue drug crimes. To the extent that a state-licensed business appears to those prosecutors to be violating local law and diverting marijuana to the criminal market or selling to minors, that is a prime target for aggressive enforcement. Savvy licensees are already building robust compliance programs to avoid providing any appearance that they are not in strict compliance with local rules. In a federal enforcement environment in which the Attorney General is encouraging prosecutions with a clear intent to deter bad actors in the future, those efforts become even more essential.
In short, the prospect of a death penalty prosecution of the owner of a rule-following, state-licensed marijuana business is very remote. The way to keep it very remote is to focus on efforts that demonstrate that you are, in fact, following the rules.
Michael Cooper is the co-founder and managing member of MadisonJay Solutions LLC, the leading regulatory advisor to adult-use cannabis companies. A graduate of Harvard College and Harvard Law School, he previously served as General Counsel of MHW, Ltd., a leading provider of compliance services in the beverage alcohol industry, and in the litigation department of Cravath, Swaine & Moore LLP, known as one of the nation’s premier law firms for nearly two centuries.
Department of Justice Rescinds Cole Memo: Here’s what to expect
This morning, Attorney General Jeff Sessions announced the Department of Justice’s move to rescind the “Cole Memo” and two additional memos related to marijuana enforcement policy. These memos, issued in 2013 and 2014, have helped to clarify the Department’s response to state-legal cannabis activity.
This is disturbing news for the cannabis industry and the majority of U.S. voters who support legal cannabis. However, the rescinding of this memo does not necessarily mean that any major change in enforcement policy is on the horizon. This has been, and still will be, a matter of prosecutorial discretion.
NCIA’s team in D.C. is working tirelessly to ensure that the administration and the Department of Justice uphold President Trump’s campaign promise to not interfere with state-legal cannabis programs by making sure they understand that regulated cannabis is successfully undercutting the criminal market, while funding important state programs.
At this time, it’s critical the cannabis industry unify to amplify that message so it’s crystal clear. It’s also imperative that Congress take action to align federal legislation with the majority of states, which now allow some form of legal cannabis.
One pressing issue before Congress is Senator Leahy’s appropriations amendment which would prevent the DOJ from using resources to undermine state medical cannabis laws. (The Senate’s version of the Rohrabacher-Blumenauer Amendment in the House.)
Please call your U.S. Senators today and urge them to include the Leahy Amendment in the upcoming Omnibus Appropriations Bill.
Talking points to help guide your call are included on our online action page.
To learn more about NCIA’s advocacy efforts or the NCIA-PAC, please contact NCIA Government Relations Manager, Michelle Rutter by emailing Michelle@thecannabisindustry.org.
And, of course, if your business is not yet a member of NCIA, please join today so that we have the resources we need to prevent any rollback of the progress we’ve made in recent years.
by Michelle Rutter, NCIA Government Relations Manager
With the beginning of 2018, we start another election year. Multiple states in the midwest are running medical cannabis ballot initiatives, while Vermont is set to become the first state to legalize adult-use cannabis through the state legislature. In Washington, D.C., policy moves at a slower pace, but with Attorney General Jeff Sessions in office, it’s important to remain vigilant. Let’s take a look at what may happen in cannabis policy across the country:
MEDICAL CANNABIS POLICY
UTAH
The Utah Patients Coalition (UPC) is leading a 2018 ballot campaign to establish a medical cannabis program. The initiative seeks to protect terminally and seriously ill patients with specific debilitating medical conditions, including HIV/AIDS, PTSD, and chronic pain, among others. In addition, the initiative allows for caretakers to administer medical cannabis and would issue four types of licenses if passed: cultivation facilities, processing facilities, independent testing laboratories, and dispensaries.
The Chairman of the Senate Finance Committee, Orrin Hatch (R-UT) has introduced a medical cannabis research bill, and has even said on the Senate floor that medical cannabis can be an alternative to opioids. Passing the 2018 ballot initiative in his home state of Utah will be critical to furthering advocates’ work at the federal level.
A recent poll done by the Salt Lake Tribune found that 3 in 4 Utahns support legalizing medical cannabis. The campaign must collect 113,143 signatures from registered voters in order to qualify for the ballot. As of October 2017, the coalition had already garnered 20,000 signatures.
MISSOURI
A group called New Approach Missouri has formed and is in the process of collecting signatures for a proposed constitutional amendment to their state constitution that would legalize medical cannabis. The initiative would create a statewide system for production and sale of medical cannabis and provides for limited and regulated patient cultivation. Interestingly, the initiative levies a four percent retail tax, but all revenue in excess of the cost of regulating the medical cannabis program will go towards Missouri’s veterans.
New Approach Missouri must to collect 160,199 valid signatures from registered voters in order to be placed on the ballot. As of December 2017, the campaign had collected roughly 100,000 signatures. A poll done in 2015 showed that 85% of Missourians support implementing a medical cannabis program.
OKLAHOMA
Oklahomans for Health is the proponent of the upcoming state question SQ788, which would create a medical cannabis program. Obtaining a state-issued medical marijuana card would require a board-certified physician’s signature, though there are no specific qualifying conditions. The measure would enact a seven percent tax on marijuana sales, with revenue financing regulatory costs. Any surplus would be distributed: 75% to the General Fund to be used for education, and 25% to the Oklahoma State Department of Health to be used for drug and alcohol rehabilitation.
The initiative has already qualified, and will appear on the ballot in November 2018. Polling data is scarce, however, a 2013 poll showed that 71% of Oklahomans supported legalizing medical cannabis.
SOUTH DAKOTA
A group known as New Approach South Dakota is behind an effort to legalize medical cannabis in 2018. The group was also hoping to submit signatures to legalize adult-use cannabis, but was unsuccessful. The measure would set an excise tax on marijuana that would include a $50 per ounce tax on cannabis flower for buyers, and would have other taxes apply to buying immature plants and other parts of the cannabis plant.
In November 2017, New Approach South Dakota submitted roughly 15,000 signatures to qualify for the ballot- that’s just 1,000 more than required. The state hopes to review submitted ballot initiatives in the coming months.
ADULT-USE CANNABIS POLICY
MICHIGAN
The Coalition to Regulate Marijuana Like Alcohol has officially submitted ballot language to the State of Michigan that would legalize consumption and possession of marijuana for adults 21 and over in Michigan. The proposal enacts an excise tax on marijuana at the retail level in addition to the standard state sales tax and provides for state regulators to grant business licenses for cultivators, processors, testing facilities, secure transporters, retail stores and microbusinesses.
In November 2017, the Coalition to Regulate Marijuana Like Alcohol turned in more than 360,000 signatures to qualify for the ballot– that’s 100,000 signatures beyond the 252,000 required by the state. Polling done in early 2017 showed that 57% of Michiganders would support legalizing cannabis.
VERMONT
Vermont is poised to make history and become the first state to legalize adult-use cannabis through the state legislature in early 2018. In December 2017, Vermont House Speaker Mitzi Johnson (D) said, “It will be up for a vote in early January. I expect that it likely will pass in early January.”
The state came incredibly close to passing language that would have legalized adult-use cannabis back in 2017, however, the legislature was unable to make changes Governor Phil Scott (R) requested before the session ended. The Governor has since stated that he is “comfortable” with signing legalization legislation.
OHIO
The group that unsuccessfully ran a ballot initiative in 2015 to legalize cannabis in Ohio is making a comeback in 2018. In December 2017, a team announced that they will work to place a cannabis legalization measure on the ballot in 2018. Known as the Regulate Marijuana Like Alcohol Amendment, the measure would allow people over the age of 21 to purchase and use cannabis legally. The amendment would also create a taxed and regulated cultivation, processing, and sales system.
Valid signatures from 305,592 registered voters are required before July 4, 2018, in order to qualify the measure for the ballot.
NEW JERSEY
Unlike New Jersey’s Governor Chris Christie (R) , Governor-Elect Phil Murphy (D) is setting a positive tone on cannabis in the state. Murphy has advocated for legalization multiple times, and even made one of his campaign promises to legalize adult-use cannabis in his first 100 days in office.
Democrats in the state legislature have already introduced multiple bills to tax and regulate adult-use cannabis, predicted to be worth more than $1 billion in the state. The full legalization bill currently being considered is S3195, sponsored by state Senator Nicholas Scutari (D). Sen. Stephen Sweeney (D), the state senate’s president, has already promised to pass the bill within the first three months of Murphy’s administration.
Recent polling shows that over 60% of New Jersey residents support legalizing cannabis.
CANNABIS DECRIMINALIZATION
VIRGINIA
In November 2017, voters in Virginia elected Ralph Northam (D) as their next Governor. Northam made cannabis decriminalization a centerpiece of his gubernatorial campaign, and has even spoken about the hemp cultivation and the medical benefits of cannabis.
Virginia lawmakers considered but did not act on decriminalization legislation during the 2017 session. However, with the State Crime Commission conducting a study on the effects of decriminalization in the state at the request of the Republican Senate majority leader, advocates remain hopeful in 2018.
FEDERAL CANNABIS POLICY
While 2018 is shaping up to be a busy year for cannabis policy at the state level, things will likely move slowly in Washington, D.C. NCIA will be working to ensure language protecting medical cannabis patients (the Rohrabacher-Blumenauer amendment, formerly known as the Rohrabacher-Farr amendment) remains in federal law. NCIA will also be lobbying to expand that language to apply to adult use states (McClintock-Polis amendment) and to include a banking amendment that would allow cannabis businesses access to financial services (Heck amendment).
As leadership in both houses of Congress continue to negotiate the final version of the tax reform bill, there will be opportunities next year for Congress to make additions and changes on future individual tax legislation. NCIA will be looking at any possible avenues to have 280E legislation be included in future bills if the opportunity arises. Action on the cannabis banking bill is unlikely in 2018, however, NCIA will continue to advocate for a committee hearing, gather more cosponsors on HR 2215: The SAFE (Secure and Fair Enforcement) Banking Act, and work to identify a Republican lead sponsor for the bill in 2019.
NCIA will also be working to ensure that the Cole Memo remains in place. Attorney General Jeff Sessions has recently said that the Department of Justice will be reviewing current memos, and that “Guidance documents can be used to explain existing law… but they should not be used to change the law or to impose new standards to determine compliance with the law… This Department of Justice will not use guidance documents to circumvent the rule-making process, and we will proactively work to rescind existing guidance documents that go too far.” While Attorney General Sessions is very clearly personally opposed to cannabis, it’s important to note that personal feelings are not official Justice Department policy.
In addition, NCIA is working behind the scenes to educate the Trump Administration on cannabis policy, maintain the Cole Memo, protect cannabis patients and consumers, and make positive remarks regarding medical cannabis in 2018.
This site uses cookies. By using this site or closing this notice, you agree to the use of cookies and our privacy policy.
“So many more people keep coming to Lobby Days which is amazing to see,” said Karson Humiston, founder of 
There were many Congressional offices that were receptive to the efforts and positions of NCIA members during Lobby Days. Heather took a meeting with Sen. Bernie Sanders’ (I-VT) office, for example, and after leaving the meeting she felt that it went wonderfully, stating, “Senator Sanders is a proponent for the safe and regulated use of cannabis whether in the medical side or the adult use side, so it was a meeting that for us was an opportunity to tell Bernie and his staff how much we appreciate the hard work that he’s done, ask him what we can do as an industry to help them continue the progress that they’ve already made and learn more about where his focus is.” Sullivan is well-versed in the issues facing cannabis businesses today and knows many other officials are still in need of convincing.
In recent days, and for the second time in 2018, the state-legal cannabis industry is abuzz over a new memo issued by Attorney General Sessions. Having revoked the Cole Memo in a January memo, the Attorney General’s latest memo addresses the use of capital punishment in drug cases. Notably, he urges federal prosecutors to consider the death penalty in drug cases—including in circumstances that facially could include the operation of large-scale state-legal marijuana businesses regardless of compliance with local rules. 
Second
Michael Cooper is the co-founder and managing member of 