Webinar Recording: SAFE Banking – What’s Next?

In case you missed this live webinar from September 30, watch this recording to learn more about cannabis policy and legislative priorities for the 116th Congress. You’ll get the latest updates on the SAFE Banking Act and other cannabis legislation being considered in this Congress. You’ll also get an update on NCIA’s plan for how cannabis should be regulated by the federal government post-legalization. Lastly, you’ll learn more about how NCIA’s plan to federally regulate can help to solve issues around vaping.

Access the presentation slide deck here.

VIDEO: Capitol Hill Update On Cannabis Banking Hearing In Congressional Committee

Every day, our Government Relations team is keeping our finger on the pulse of what’s happening on the Hill and how it affects our industry. In this case, we have important news from D.C. about movement to fix the banking crisis faced by cannabis industry operators.

Watch this video to learn more about the historic hearing that took place on February 13 in the Subcommittee on Consumer Protection and Financial Institutions. They held the first ever hearing on marijuana and financial services, entitled: Challenges and Solutions: Access to Banking Services for Cannabis-Related Businesses. Up for discussion was a new version of the Secure and Fair Enforcement (SAFE) Banking Act.

There’s no better way to stay informed and connected with what’s happening in federal policy than by being a member of NCIA – the largest and most influential national trade association representing the legal cannabis industry. We fight on your behalf year-round in the halls of Congress for our industry to be treated fairly like any other legitimate industry in this country.

Be sure to register in advance for our popular Cannabis Caucus event series – tickets are complimentary for NCIA members, and a limited number of non-member tickets are available. Join us throughout the month of March in Los Angeles, San Francisco, Denver, Lansing, and Philadelphia. For more information, visit our website.

And now is the time to start planning your trip to Washington, D.C. to join us on Capitol Hill! For the 9th year in a row, we’re hosting our Annual Cannabis Industry Lobby Days on May 21-23. This is your chance to walk the halls of Congress and make your voice heard about the unfair tax and banking policies that cripple our industry. This event is exclusively for current NCIA members, so if you’d like to join us for what NCIA members say is “the most important and exciting NCIA event of the year,” then now is the time to join NCIA at one of our three levels of membership, and then join us in May in our nation’s capitol.

If you’re already planning to join us, now is a perfect time to read up on our latest Policy Council report to learn more about priorities for our industry in the 116th Congress.

New Year, New Attorney General?

by Michelle Rutter, NCIA’s Government Relations Manager

Last month, the Senate Judiciary Committee began the confirmation hearing for William Barr, President Trump’s nominee for Attorney General. Barr served as Attorney General under President George H.W. Bush from 1991-1993 — a time when the War on Drugs was arguably at its peak. There was much concern that Barr’s position on cannabis would be reminiscent of the last Attorney General, Jeff Sessions, however, January’s hearings proved otherwise.

During the Senate confirmation hearing, Barr stated that he would respect state cannabis laws and legal businesses when it comes to enforcing federal marijuana statutes. In response to questioning from Sen. Cory Booker (D-NJ) and Sen. Kamala Harris (D-CA), Barr stated that if confirmed, his “approach to this would be not to upset settled expectations and the reliant interests that have arisen as a result of the Cole Memorandum.” Upon further questioning, he stated that he “is not going to go after companies that have relied on the Cole Memorandum.” (It’s also important to note that the two Senators who asked Barr about cannabis policy are both running for president).

Barr even put it in writing. In response to written questions, Barr wrote, “As discussed at my hearing, I do not intend to go after parties who have complied with state law in reliance on the Cole Memorandum… I have not closely considered or determined whether further administrative guidance would be appropriate following the Cole Memorandum and the January 2018 memorandum from Attorney General Sessions, or what such guidance might look like. If confirmed, I will give the matter careful consideration.” He also wrote to the committee, “I still believe that the legislative process, rather than administrative guidance, is ultimately the right way to resolve whether and how to legalize marijuana.”

The Cole Memo, issued in 2014, directed federal prosecutors not to use resources to target businesses or individuals that were in compliance with state cannabis laws and met a set of public safety criteria. That guidance, which gave many businesses and state governments the confidence to move forward with implementing regulated cannabis markets, was rescinded in January 2018 by then-Attorney General Jeff Sessions.

Several comprehensive cannabis policy reform bills that would allow states to determine their own laws without federal interference are expected to be considered this year. NCIA will continue to work with the Senate Judiciary Committee, Barr (should he be confirmed), and the Department of Justice on these critical issues.

NCIA at the Washington Cannabis Summit

by Rachel Kurtz, Outreach Manager

NCIA had the pleasure of attending and presenting at the recent 5th Annual Washington State Cannabis Summit, presented by The Cannabis Alliance, Washington state’s leading trade association for the cannabis industry and a member of NCIA’s Allied Associations Program. This conference is always extremely well done, with high caliber speakers on informative panels covering topics such as cannabis economy and markets, agronomy, and therapeutic values. Plenty of time left for Q&A allowed further engagement with the audience, sparking deeper conversations throughout the day.

NCIA’s Government Relations manager Michelle Rutter spoke on a policy panel about what’s happening around cannabis at the federal level in the other Washington, D.C. The panel was a holistic view of policy from around the country, including panelists Casey Houlihan, Executive Director of the Oregon Retailers of Cannabis Association; Cat Packer, the first Executive Director of the Department of Cannabis Regulation for the City of Los Angeles; and Rick Garza, Director of the Washington State Liquor and Cannabis Board (WSLCB).

The attendees were very interested in the social equity work happening around the country, and we learned that the WSLCB is making efforts in that area. It was also heartening to see Rick Garza taking notes when Cat Packer spoke about ways that California is trying to help the industry reach its customers by allowing consumption events without compromising safety or the integrity of the traceability program.

The highlight of the event came early in the day when Governor Jay Inslee, who had just three days prior announced his candidacy for President, told the room he planned to pardon thousands of people convicted of small cannabis possession charges. This would be done by creating an expedited process where people could apply for and receive a pardon in a simple fashion without needing a lawyer. It is expected to affect around 3500 people.

2018 NATIONAL CANNABIS INDUSTRY FORECAST

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.

By The Numbers: NCIA Members Make It Happen In The Halls Of Congress

by Michelle Rutter, NCIA Government Relations Manager

While 2017 has had some political unknowns, one thing is for sure: cannabis legislation in Congress has more support than ever — and NCIA members have helped make that happen.

In mid-May, NCIA held its 7th Annual Cannabis Industry Lobby Days in Washington, D.C., where 250 industry professionals came together on Capitol Hill to attend more than 300 scheduled meetings. Since then, there has been a substantial increase in the number of cosponsors on cannabis-related bills compared to the last congressional session.

Last session, during the 114th Congress, Rep. Ed Perlmutter (D-CO) introduced the Marijuana Businesses Access to Banking Act, which would have created a safe harbor for financial institutions to serve marijuana-related businesses. At the end of the two-year session, the bill had 39 cosponsors.

Earlier this year, during the 115th Congress, Rep. Perlmutter introduced his new bill, the Secure and Fair Enforcement (SAFE) Banking Act (H.R. 2215). That bill currently has 47 cosponsors with nearly a year and a half left in the session to gain more support. Since NCIA’s Lobby Days in May, the SAFE Banking Act has added 18 new cosponsors.

There has also been a substantial increase in the number of cosponsors on the House of Representatives bill that addresses the 280E tax problem. Last session, Rep. Earl Blumenauer (D-OR) introduced the Small Business Tax Equity Act, which ended the session with 18 cosponsors.

This year, NCIA was successful in helping secure Rep. Carlos Curbelo’s (R-FL) leadership on the Small Business Tax Equity Act of 2017 (H.R. 1810), which has been instrumental in gaining the 25 cosponsors the bill currently has. That legislation has gained 13 new cosponsors since NCIA’s annual Lobby Days.

In addition to an increase in cosponsorship of cannabis-related bills, there’s also been an uptick in support for appropriations amendments at the committee level. At the end of July, the Senate Appropriations Committee adopted an amendment that would allow the Department of Veterans Affairs (V.A.) to recommend medical cannabis in states. That amendment passed by a vote of 24-7 — the most votes this measure has ever received in the Senate.

As the appropriations process continues through the summer, it’s likely that more cannabis-related amendments will be brought up and voted on, including votes dealing with protections for medical marijuana businesses and banking. NCIA is confident that if congressional leadership allows these measures to be voted upon, they will receive unprecedented levels of support.

The industry’s united voice makes a difference on Capitol Hill, and it can be seen in the numbers. To learn more about NCIA’s annual Cannabis Industry Lobby Days, you can click here.

The Cannabis Industry Takes D.C. – Highlights from NCIA’s 7th Annual Lobby Days

by Michelle Rutter, NCIA Government Relations Manager

With the uncertainty that the new administration has brought the cannabis industry, it’s become more important now than ever before to be proactive in government and in our nation’s capital. Last month, NCIA did just that by hosting our 7th Annual Cannabis Industry Lobby Days. 250 cannabis industry professionals joined us in Washington, D.C., to meet with more than 300 Capitol Hill offices and tell their stories.

Lobby Days kicked off with a breakfast and training session for our attendees, where they learned lobbying basics and were briefed on our talking points. There, attendees met with their groups and gathered their materials to drop off in Capitol Hill offices for staff.

Once the training session was complete, we led our attendees down to our group photo location. Every year, NCIA has nearly doubled the number of participants at Lobby Days.

Following our (very large!) group photo, meetings on Capitol Hill commenced. We scheduled more than 300 meetings with congressional opponents, advocates, members from relevant committees, and others. In addition to the meetings we had scheduled, we also dropped in on various offices and left information about our issues with staff for them to review. In all, we made contact with nearly all of the 535 congressional offices on the Hill!

Simultaneously during our Hill meetings, NCIA hosted a private luncheon for Rep. Carlos Curbelo (R-FL), the new sponsor of H.R. 1810: The Small Business Tax Equity Act, which addresses the unfair burden of 280E faced by the cannabis industry. Over the years, NCIA has consistently worked to increase our Capitol Hill advocates and are thrilled that Congressman Curbelo will be leading the charge on 280E reform.

After a busy day of meetings on Capitol Hill, NCIA hosted a fundraiser for the NCIA-PAC, the Political Action Committee (PAC) for cannabis industry professionals. We had six members of Congress show their support by joining us: Reps. Earl Blumenauer (D-OR), Salud Carbajal (D-CA), Carlos Curbelo (R-FL), Ruben Gallego (D-AZ), Jared Polis (D-CO), and Dina Titus (D-NV).

We were thrilled to raise $60,000 for the NCIA-PAC, which supports federal candidates who are open to the challenges and concerns our industry faces, support cannabis reform at the federal level, and introduce or support pro-cannabis legislation.

Our second day got off to a great start with a press conference held in front of the United States Capitol Building. NCIA executive director Aaron Smith was joined by seven members of Congress (Reps. Blumenauer, Steve Cohen [D-TN], Curbelo, Diana DeGette [D-CO], Eleanor Holmes-Norton [D-DC], Polis [D-CO], and Titus [D-NV]) to address the need for reform federal marijuana laws.

Once the press conference concluded, our second day of meetings on Capitol Hill began. There were more than 50 meetings scheduled for Day 2.

Overall, it was an incredibly successful Lobby Days, and our biggest yet! We’ve already seen co-sponsorship on cannabis-related bills increase, and it is undoubtedly related to the meetings and personal stories NCIA members shared. We look forward to seeing you all in Washington, D.C., for our 8th Annual Cannabis Industry Lobby Days in 2018!

Thank you to the co-chairs of NCIA’s Policy Council for their premier sponsorship of our 2017 Cannabis Industry Lobby Days:

Top 3 Ways to Get Involved with Congress at Home During August Recess

by Michelle Rutter, Government Relations Coordinator

US_Senate_Chamber_c1873 Each year, Congress recesses for the month of August. Traditionally, this time has been used for Members to return home to their districts and meet with constituents and, of course, campaign for re-election. Though this makes August a quiet month in D.C., it’s a great time for you and your colleagues to get involved with the political process, engage with Members of Congress, and educate them on cannabis policy.

Here are the top 3 ways you can get involved at home during August recess:

Attend (or plan) a town hall

Town hall meetings are an excellent way for businesses, local leaders, and representatives of the cannabis movement to communicate with elected officials about issues affecting your community. Make sure you call or check your Representative and Senators’ websites to see if any town halls have been scheduled during August recess. If they aren’t planning on holding one, consider planning a town hall yourself and inviting various elected officials to talk about cannabis policy in your community and on the federal level.

Invite Members of Congress or their office staff on a tour of your business

Even though cannabis is arguably more mainstream than it’s ever been, many elected officials still have not had the chance to experience what the responsible and legal cannabis industry looks like firsthand. Whether you’re involved with growing, processing, or dispensing cannabis, or operate an ancillary business, a tour with a Member of Congress and/or their staff can be invaluable to them. Reach out to your elected officials’ district office and ask if they would be interested in a tour- their answer may surprise you!

Schedule a meeting with your Member’s district office

August recess means Members of Congress are home for an entire month and is a great opportunity to meet with them and their staff! There are very few things more compelling than a personal story when talking to elected officials, so whether your experience has been with the benefits of medical cannabis, the unfair tax burden of 280E, or the struggle for traditional banking, be sure to schedule an appointment with your district office to tell that story. Click here to find out who your Representative is and visit their website to see where their district office is located.

We all have a responsibility to educate and engage with elected officials in order to change the perception surrounding cannabis. August recess is the perfect opportunity to get involved with federally elected officials without having to leave home! If you need advice, help, or materials to assist you, remember to contact NCIA’s Washington, D.C. office by emailing michelle@thecannabisindustry.org.

2016 Mid-Year Federal Policy Recap

by Michelle Rutter, NCIA Government Relations Coordinator

With 2016 being an election year, things seem to have been moving at an even slower than usual pace here in Washington, D.C. All House and some Senate members are in campaign mode, while others in Congress weigh in on the presidential candidates and give their endorsements (or voice their opposition). Even so, there has been promising movement on the cannabis issue in D.C. Let’s take a look at 2016 so far:

January

After the usual end-of-year budget negotiations and the holidays, 2016 was off to a quick start. At the beginning of January, a federal judge ruled to dismiss a lawsuit filed by the Fourth Corner Credit Union against the Federal Reserve in hopes of providing banking services to the legal cannabis industry. In his ruling, Judge R. Brooke Jackson said Congress must provide the answer, stating, “I regard the [cannabis banking] situation as untenable and hope that it will soon be addressed and resolved by Congress.”

Putting even more pressure on Congress to act, the White House also weighed in on marijuana in January. Press Secretary Josh Earnest stated that any action on re-scheduling or de-scheduling cannabis would need to come from the legislative branch.

February

In February, the U.S. House of Representatives Committee on Rules held a hearing on the Financial Institution Customer Protection Act of 2015 (H.R. 766). This bill prohibits federal agencies – including banking agencies – from terminating certain bank accounts simply due to the nature of their business. Longtime cannabis champion Rep. Ed Perlmutter (D-CO) used this hearing as an opportunity to offer an amendment to the legislation. His amendment would have allowed banks and credit unions to offer financial services and maintain relationships with state-legal, licensed cannabis businesses, without fear of federal prosecution. The committee ultimately voted Rep. Perlmutter’s amendment down: the 3-9 vote broke along party lines, with all Democrats voting in favor and all Republicans voting in opposition.

Presumptive Democratic nominee Hillary Clinton also gave her opinion on cannabis in February, stating, “Right now, a number of states are experimenting with marijuana laws. Seventeen states have decriminalized the possession of small amounts of marijuana; four states allow recreational use; and about half of all states allow medical use. These statewide experiments can help us point the way to national policy, so I’ll continue the Obama Administration’s enforcement guidelines that allow states to experiment.”

March

In March, federal banking agencies began having discussions with the Financial Crimes Enforcement Network (FinCEN) about guidance on how financial institutions can serve marijuana-related businesses. Many banks are concerned that FinCEN’s previous guidance on submitting marijuana-related Suspicious Activity Reports (SARs) is not sufficient to overcome the legal risks of serving marijuana businesses.

Reinforcing the urgency of the cannabis banking issue, Sen. Jeff Merkley (D-OR) and three other senators sent a letter to the Federal Reserve, Treasury Department, Office of the Comptroller of the Currency, Federal Deposit Insurance Corporation, Financial Crimes Enforcement Network (FinCEN) and National Credit Union Administration, requesting more guidance on what banks can do with marijuana-related businesses in states where cannabis is legal.

In addition, Congressmen Ed Perlmutter (D-CO) and Dana Rohrabacher (R-CA) circulated letters in Congress asking Appropriations Chairmen to include pro-cannabis amendments in future appropriations bills.

After considering the lawsuit filed by Nebraska and Oklahoma against Colorado’s legal cannabis industry, the Supreme Court declined to take up the case in March. Nebraska and Oklahoma claimed there was “a direct and significant detrimental impact — namely the diversion of limited manpower and resources to arrest and process suspected and convicted felons involved in the increased illegal marijuana trafficking or transportation.” The Obama administration had urged the Court not to take up the case late last year.

April

In April, longtime cannabis opponents Sens. Chuck Grassley (R-IA) and Dianne Feinstein (D-CA) (co-chairs of the Caucus on International Narcotics Control) held a drug caucus hearing entitled, “Is the Department of Justice Adequately Protecting the Public from the Impact of State Recreational Marijuana Legalization?” The hearing was prompted after a recent report that the senators requested from the Government Accountability Office (GAO) concluded that the Obama Administration has no written, documented plan to discourage issues like diversion, sale to minors, and adverse public health effects from states that have chosen to legalize cannabis. The witnesses were completely biased: all four have been openly against the legalization of cannabis. NCIA and other cannabis reform groups used this opportunity to call on the Senators to hold a hearing on the CARERS Act (S. 683), which they have not done – even though the bill has more than 15 bipartisan co-sponsors in the Senate.

Also in April, the Senate Appropriations Committee approved an amendment to the Military Construction and Veterans Affairs Appropriations bill that would ease access to medical cannabis for veterans suffering from post-traumatic stress disorder, serious injuries, and other debilitating conditions. The amendment was offered by Sens. Steve Daines (R-MT) and Jeff Merkley (D-OR) and would prohibit federal funds from being used to enforce a ban on V.A. doctors from recommending a patient medical cannabis in a state where it is legal.

May

In May, the U.S. State Department responded to a letter from Sen. Kirsten Gillibrand (D-NY) and said that the DEA’s monopoly on cannabis for research in the U.S. is wrong. The released document stated that a country issuing more than one cultivation license “would not be a sufficient basis to conclude that the party was acting in contravention” with international drug treaties.

6thLobbyDays There’s no doubt that cannabis was on Congress’s mind because NCIA held its sixth annual Cannabis Industry Lobby Days in May! More than 150 cannabis professionals convened in Washington, D.C., for two days of advocacy that included more than 200 scheduled meetings and approximately 175 more drop-in meetings, as well as a PAC reception that had almost a dozen members of Congress in attendance.

Just days after NCIA’s Lobby Days, the House of Representatives and the Senate voted in favor of an amendment that would allow Veterans Administration doctors to recommend medical marijuana for their patients in states where medical marijuana is legal.

June

Though we’re barely halfway through June, it could be a big month for cannabis policy in D.C. It’s appropriations season here in the nation’s capital, which means that there could potentially be multiple opportunities to include pro-cannabis language in the budget. Though it is still unclear if Congress will have ‘regular order’ during the appropriations process, NCIA will continue to lobby on your behalf and keep you updated as the appropriations process unfolds.

A new poll from Quinnipiac was released in June and concluded that slightly more than half of Americans (54 percent) believe the use of marijuana should be made legal across the country, while 41 percent said it should not. When asked whether people should be allowed to use medically prescribed marijuana, 89 percent of respondents overall said they would be in favor, while just 9 percent opposed.

Congress only has a handful of days left in session before they return home for the majority of the summer to campaign, attend their parties’ conventions, and enjoy the annual August recess, so be sure to keep an eye out for news from NCIA about the developing appropriations process and other news from your government affairs team in Washington, D.C.

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.

The 5 Critical Pieces of Cannabis Legislation You Need to Know About

by Michelle Rutter, Government Relations Coordinator

As the cannabis industry has continued to thrive and expand, the number of bills in Congress dealing with the issue has done the same. Between the House of Representatives and the Senate, there are well over a dozen bills that address the conflicts between state and federal cannabis policy. NCIA’s lobbying efforts focus primarily on banking access and the unfair taxation caused by Section 280E, but we also advocate for other bills that are crucial for the industry. Below are my choices for “The 5 Critical Pieces of Cannabis Legislation You Need to Know About”:

BANKING
H.R.2076: Marijuana Businesses Access to Banking Act of 2015
Introduced by: Rep. Ed Perlmutter (D-CO, 7th District)
Last Action: Referred to House Subcommittee on Crime, Terrorism, Homeland Security, and Investigations on June 1, 2015.
Summary: This bill would provide a safe harbor for depository institutions providing financial services to a cannabis-related business insofar as it prohibits a federal banking regulator from: (1) terminating or limiting the deposit or share insurance of a depository institution solely because it provides financial services to a marijuana-related legitimate business; or (2) prohibiting, penalizing, or otherwise discouraging a depository institution from offering such services.

S.1726: Marijuana Businesses Access to Banking Act of 2015
Introduced by: Sen. Jeff Merkley (D-OR)
Last Action: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs on July 9, 2015.
Summary: Although the House and Senate cannabis banking bills are companions, the bill introduced by Sen. Merkley is slightly more detailed in its language.

The Senate bill would prevent federal banking regulators from: prohibiting, penalizing or discouraging a bank from providing financial services to a legitimate state-sanctioned and regulated marijuana business; terminating or limiting a bank’s federal deposit insurance solely because the bank is providing services to a state-sanctioned marijuana business; recommending or incentivizing a bank to halt or downgrade providing any kind of banking services to these businesses; or taking any action on a loan to an owner or operator of a marijuana-related business.

The bill also creates a safe harbor from criminal prosecution and liability and asset forfeiture for banks and their officers and employees who provide financial services to legitimate, state-sanctioned marijuana businesses, while maintaining banks’ right to choose not to offer those services. It would also require banks to comply with current Financial Crimes Enforcement Network (FinCEN) guidance, while at the same time allowing FinCEN guidance to be streamlined over time as states and the federal government adapt to legalized medicinal and recreational marijuana policies.

280E
H.R.1855: Small Business Tax Equity Act of 2015
Introduced by: Rep. Earl Blumenauer (D-OR, 3rd District)
Last Action: Referred to House Committee on Ways and Means on April 16, 2015.
Summary: Amends the Internal Revenue Code by adding language at the end of Section 280E that would exempt a trade or business that conducts marijuana sales in compliance with state law from the prohibition against allowing business-related tax credits or deductions for expenditures in connection with trafficking in controlled substances.

S.987: Small Business Tax Equity Act of 2015
Introduced by: Sen. Ron Wyden (D-OR)
Last Action: Referred to Senate Committee on Finance on April 16, 2015.
Summary: This Senate bill is the companion to the H.R. 1855 described above. As such, the summary is the same.

STATES’ RIGHTS AND RESPONSIBILITIES
H.R.1940: Respect State Marijuana Laws Act of 2015
Introduced by: Rep. Dana Rohrabacher (R-CA, 48th District)
Last Action: Referred to the House Subcommittee on Crime, Terrorism, Homeland Security, and Investigations on May 15, 2015.
Summary: Amends the Controlled Substances Act to provide that the provisions of the Act related to cannabis shall not apply to any person acting in compliance with state laws relating to the production, possession, distribution, dispensation, administration, or delivery of marijuana

CIVIL ASSET FORFEITURE
H.R.3518: Stop Civil Asset Forfeiture Funding for Marijuana Suppression Act of 2015
Introduced by: Rep. Ted Lieu (D-CA, 33rd District)
Last Action: Referred to the House Subcommittee on Crime, Terrorism, Homeland Security, and Investigations on October 5, 2015.
Summary: This bill would prevent the Drug Enforcement Administration (DEA) from using federal forfeiture funds to pay for its Domestic Cannabis Eradication/Suppression Program. Additionally, the bill would ban transferring property to federal, state or local agencies if that property “is used for any purpose pertaining to” the DEA’s marijuana eradication program.

MEDICAL CANNABIS
S.683: Compassionate Access, Research Expansion, and Respect States (CARERS) Act of 2015
Introduced by: Sen. Cory Booker (D-NJ)
Last Action: Referred to Senate Committee on the Judiciary on March 10, 2015.
Summary: Amends the Controlled Substances Act (CSA) to provide that control and enforcement provisions of such Act relating to marijuana shall not apply to any person acting in compliance with state law relating to the production, possession, distribution, dispensation, administration, laboratory testing, or delivery of medical marijuana.
Transfers marijuana from schedule I to schedule II of the CSA.
Excludes “cannabidiol” from the definition of “marijuana” and defines it separately as the substance cannabidiol, as derived from marijuana or the synthetic formulation, that contains not greater than 0.3% delta-9-tetrahydrocannabinol on a dry weight basis.
Prohibits a federal banking regulator from: (1) terminating or limiting the deposit insurance of a depository institution solely because it provides or has provided financial services to a marijuana-related legitimate business; or (2) prohibiting, penalizing, or otherwise discouraging a depository institution from providing financial services to a marijuana-related legitimate business.
Provides depository institutions that provide financial services to a marijuana-related legitimate business protection under federal law from federal criminal prosecution or investigation, criminal penalties, and forfeiture of legal interest in collateral solely for providing financial services to such a business.
Directs The Department of Health and Human Services to terminate the Public Health Service interdisciplinary review process described in the guidance entitled “Guidance on Procedures for the Provision of marijuana for Medical Research” (issued on May 21, 1999), and also demands the Drug Enforcement Administration to issue at least three licenses under CSA registration requirements to manufacture marijuana and marijuana-derivatives for research approved by the Food and Drug Administration. Also directs the Department of Veterans Affairs (VA) to authorize VA health care providers to provide veterans with recommendations and opinions regarding participation in state marijuana programs.

H.R.1538: Compassionate Access, Research Expansion, and Respect States (CARERS) Act of 2015
Introduced by: Rep. Steve Cohen (D, TN-9)
Last Action: Referred to the House Subcommittee on Crime, Terrorism, Homeland Security, and Investigations on April 21, 2015.
Summary: This House bill is the companion to S. 683 described above. As such, the summary is the same.

In addition to these crucial pieces of legislation, there are other bills relating to cannabis that have been introduced to Congress on issues like CBD, a federal excise tax on cannabis, veterans’ access, and hemp. Cannabis advocates and NCIA members should continue to participate in NCIA’s events and lobbying efforts in addition to contacting their elected officials in order to see cannabis continue to progress in Washington, D.C. and on Capitol Hill.

Policy Update: Success in the Senate

by Michelle Rutter, Government Relations Coordinator

In the first week of June, the cannabis industry was celebrating its victories in the House of Representatives. At the end of last week, we were celebrating a victory in the US Senate, too.

At the beginning of the month, the U.S. House of Representatives debated the Commerce, Justice, and Science (CJS) Appropriations bill (HR 2578), which funds applicable government agencies for the upcoming FY2016. This year, there were four cannabis-related amendments under consideration in the House: the Rohrabacher-Farr medical marijuana amendment, the McClintock-Polis adult-use marijuana amendment, the Bonamici-Massie industrial hemp amendment, and the Perry CBD oil amendment. You can read about the results of the House votes in this NCIA blog post. capitolblossoms

On June 11, two cannabis-related amendments were brought before the Senate Appropriations Committee. Cannabis champion Sen. Barbara Mikulski (D-MD) offered a medical cannabis amendment, which would ban the Department of Justice from interfering with state-compliant medical cannabis businesses. In addition, Sen. Jon Tester (D-MT) offered a hemp amendment that would protect state industrial hemp laws from the Department of Justice’s interference. These amendments are the Senate companions to the House’s Rohrabacher-Farr and Bonamici-Massie amendments, respectively.

The Senate Appropriations Committee voted with Sen. Mikulski to protect state medical marijuana laws 21-9. Senator Jerry Moran (R-KS) changed his original ‘No’ vote to a ‘Yes’, while presidential contender and Senator Lindsey Graham (R-SC) also attempted to change his ‘No’ vote to a ‘Yes’, but was too late. Sen. Tester’s industrial hemp amendment also passed through the committee via voice-vote.

Victory is sweet, but it’s important to remember that these appropriations amendments only protect states’ medical cannabis and hemp laws for the upcoming fiscal year. As encouraging as the appropriations season has been, it is still imperative that we pass comprehensive cannabis banking and 280E reform bills in order to be treated like every other American business.

Below is the detailed vote breakdown from the Senate committee’s vote on the Mikulski amendment:

Republicans	Democrats
Thad Cochran (R-MS): No	Barbara Mikulski (D-MD): Yes
Mitch McConnell (R-KY): No	Patrick Leahy (D-VT): Yes
Richard Shelby (R-AL): No	Patty Murray (D-WA): Yes
Lamar Alexander (R-TN): Yes	Dianne Feinstein (D-CA): No
Susan Collins (R-ME): Yes	Richard Durbin (D-IL): Yes
Lisa Murkowski (R-AK): Yes	Jack Reed (D-RI): Yes
Lindsey Graham (R-SC): No	Jon Tester (D-MT): Yes
Mark Kirk (R-IL): No	Tom Udall (D-NM): Yes
Roy Blunt (R-MO): Yes	Jean Shaheen (D-NH): Yes
Jerry Moran (R-KS): Yes	Jeff Merkley (D-OR): Yes
John Hoven (R-ND): No	Chris Coons (D-DE): Yes
John Boozman (R-AR): No	Brian Schatz (D-HI): Yes
Shelley Moore Capito (R-WV): Yes	Tammy Baldwin (D-WI): Yes
Bill Cassidy (R-LA): Yes	Chris Murphy (D-CT): Yes
James Lankford (R-OK): No
Steve Daines (R-MT): Yes

D.C. UPDATE: The November Election, What Comes Next, and Welcoming a New Staffer

By Michael Correia, NCIA Director of Government Affairs

As we come up on Halloween, I can’t think of a more fitting holiday to give a DC update (as most things coming out of Congress tends to scare us all!)

The election is just around the corner and, in addition to determining the make-up of Congress, there are four very important marijuana ballot initiatives voters will be deciding on. Voters in Alaska, Oregon, and Washington, D.C. will be voting on some form of an adult-use, tax-and-regulate structure (similar to Colorado), and Florida voters will decide on legalizing medicinal marijuana. The passage of all four, in addition to being positive developments in the states, would certainly help our work in D.C. Members of Congress are self-interested and they care about their states and their districts. When more states legalize marijuana, it makes my job easier, as it forces more members of Congress to address the issue.

After the election, Congress will come back for a very short (two week) “lame-duck” session. In that time, they will vote on party leadership posts and determine committee chairs, in addition to funding the government. Because the two issues NCIA members care most about are 280E tax reform and resolving the banking issue, the committees of jurisdiction in the House are the Ways and Means Committee and the Financial Services Committee. In the House, it’s a near certainty Republicans will stay in control; so for Ways and Means, it’s looking like Congressman Paul Ryan of Wisconsin will be Chair, and for Financial Services, it’s looking like Congressman Jeb Hensarling of Texas will be Chair (although both will be challenged by other members). Neither of them have been supporters of marijuana policy reform in the past and have voted in opposition to our amendments when they were on the House Floor earlier this year.

Control of the Senate is still up in the air, and it will come down to 3 competitive seats. The results should be known soon after polling places close, but in Louisiana, if no candidate receives over 50%, then a run off election is held in December. So it is conceivable that control of the Senate may not be determined until December 7. Exciting times indeed! The committees of jurisdiction in the Senate are the Banking Committee and the Finance Committee, and Senate Chairmen are picked based on Committee seniority.

Halloween also happens to be my one-year anniversary with NCIA! And what a year it’s been. I feel as if so much has been done in the past year, but there is so much more to do. I look forward to the upcoming year and am even happier to say that our DC operation is expanding. NCIA has hired Michelle Rutter as our new government affairs coordinator. Having her on board will make me more efficient and effective in my job and will allow me to focus more on strategy, fundraising, advocacy, and taking NCIA to new levels.

Prior to working for NCIA, Michelle was a Research Analyst at a government affairs firm in Washington, DC, where she analyzed and tracked legislation on numerous issues. Michelle graduated from James Madison University in 2012, receiving her Bachelor of Arts degree in Political Science with a minor in History. During her studies, she held a year-long internship with Virginia House of Delegates member Tony Wilt. There, she communicated with constituents, businesses, and government officials alike, facilitating meaningful conversations. Michelle was also a member of a pre-law fraternity where she planned events and hosted social functions that sought to encourage long-lasting professional and personal relationships with members. A native Virginian, Michelle currently resides in the Washington, DC, suburb of Alexandria, VA.