Breaking It Down: Appropriations

by Michelle Rutter, NCIA Government Relations Coordinator

CannApprops

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.