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Webinar Recording: A Spring Federal Policy and Government Relations Update

In this webinar from the morning of Friday, March 27 at 10:00 AM MT, NCIA’s Director of Public Policy, Andrew Kline, presents an update focused on federal cannabis policy issues taken up by NCIA’s Policy Council, including vaping illnesses, highlights of the findings from the Illicit Market Summit, and comments to be submitted to the DEA and NIDA. We also explore the COVID-19 responses across the United States.

Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations, shares information about how to stay politically active on behalf of cannabis policy reform while still practicing physical distancing during the COVID-19 pandemic. We explore the impact that COVID-19 is having on small cannabis businesses, plus an update on the action and movement we’ve seen in Congress, including a recent letter sent regarding Small Business Administration loans for cannabis businesses.

Speakers

Michelle Rutter Friberg
Deputy Director of Government Relations, National Cannabis Industry Association

Michelle Rutter Friberg is deputy director of government relations for the National Cannabis Industry Association. Prior to working for NCIA, Michelle was a research analyst at a government affairs firm in Washington, D.C., 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 (R). 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, D.C. neighborhood of Capitol Hill.

Andrew Kline
Director of Public Policy, National Cannabis Industry Association

Andrew Kline is NCIA’s Director of Public Policy. In this new role established in early 2019 at NCIA, Andrew leads NCIA’s substantive public policy efforts, striving to prepare and protect the state-legal cannabis industry. He will also lead NCIA’s Policy Council, a group of NCIA members focused on influencing federal and state public policy. Kline most recently served as President of the National Association of Cannabis Businesses (NACB), the first self-regulatory organization for the high-growth cannabis industry. At the NACB, Andrew led the creation of national standards for the state-legal cannabis industry, oversaw its standards governance board, and led day to day operations and strategic planning. Kline has a deep and celebrated background in public policy, law enforcement, and coalition creation/management. He is renowned for his ability to create solutions to complex domestic and global public policy issues that appeal to both private and public constituencies.

Update From NCIA’s Safe Vaping Task Force

by Andrew Kline, NCIA’s Director of Public Policy

In response to the vaping crisis, NCIA’s Policy Council has formed a Safe Vaping Task Force. The purpose of the task force is to unify the industry by communicating clearly in response to press reports and state/federal governmental actions, and clearly articulating the state-legal cannabis industry’s obligation to act with integrity as responsible actors. The task force will be publishing summaries of recent developments and the cannabis industry’s response, producing and publishing a white paper on safe vaping, unifying the industry’s response, and engaging federal and state/local governments as appropriate. Members of the task force include medical doctors, scientists, cannabis license holders, and relevant ancillary businesses.

Here’s the latest about safe vaping from the news this week:

  • The New York Times reported on October 21, 2019 that while the government and researchers have expended significant resources into studying nicotine delivery devices, federal law has not allowed research into the health effects of cannabis because it is classified as a controlled substance with a high potential for abuse. Therefore, we don’t have much scientific knowledge about what THC vaping does to the lungs. The Times report added that even in states where cannabis is legal, counterfeit vape cartridges (vape carts) are cheaper than the regulated, licensed, tested and taxed products. 
  • The Boston Globe reported on October 21, 2019 that a state court judge ruled that the four month ban on nicotine vapes by Governor Charlie Baker was unconstitutional because it did not allow for input from affected businesses and the public. The Court ruled that nicotine vape sales must resume on Monday unless the Baker Administration submits the nicotine ban for consideration as a formal emergency regulation before then. The decision did not impact THC vapes. 
  • The Senate International Narcotics Control Caucus will convene this week Wednesday, October 23 to discuss marijuana and public health, featuring panels that include witnesses from federal agencies and academia. The Caucus is co-chaired by Senators John Cornyn (R-TX) and Dianne Feinstein (D-CA). Senator Cornyn is an outspoken opponent of cannabis legalization, stating recently that he wants to hold this hearing in advance of any vote on SAFE Banking. Surgeon General Jerome Adams, who has been an outspoken critic of marijuana reform, is scheduled to testify. Also testifying will be Nora Volkow, Director of the National Institute on Drug Abuse (NIDA). Volkow has opined that the Schedule I status of marijuana under the Controlled Substances Act is inhibiting research. This is consistent with NCIA’s position, which is that we need to de-schedule, regulate, and test. 
  • CDC Principal Deputy Director Anne Schuchat emphasized last week that the majority of vaping-related injuries associated with THC-containing cartridges are being traced back to the illicit market, rather than state-legal cannabis shops. 
  • Former Food and Drug Administration (FDA) Commissioner Scott Gottlieb said last week that cannabis should be de-scheduled and that the federal government should regulate marijuana. 
  • California lawmakers are considering an outright ban of all vape products, including nicotine and THC. This potential action comes on the heels of Charlie Baker, Governor of Massachusetts, banning all vaping products for four months. 
  • Anti-marijuana legalization group Project SAM (Smart Approaches to Marijuana) hired three new lobbyists to help fight SAFE banking and other cannabis legislation on Capitol Hill and sent a letter this week from the organization’s science advisory board to congressional leadership urging them not to support cannabis legislation. 
  • As of October 15, 2019, 1,479 lung injury cases associated with the use of vaping products have been reported to CDC from 49 states (all except Alaska), the District of Columbia, and 1 U.S. territory. Thirty-three deaths have been confirmed in 24 states. The CDC is updating this information every Thursday. 

 

Download NCIA’s Policy Council report: Adapting A Regulatory Framework For The Emerging Cannabis Industry

 

Former FDA Commissioner Calls For Descheduling And Federal Regulation

by Andrew Kline, NCIA’s Director of Public Policy

With uncertainty about the proximate cause of the vaping crisis continuing to roil state regulators, and state governors trying to determine the right short-term solution to protect the public health, the former Commissioner of the FDA has a longer-term plan. Former Commissioner Scott Gottlieb is rightly calling for descheduling and federal regulation in an op-ed in the Wall Street Journal. NCIA made the same argument in our Policy Council’s recent white paper on regulating cannabis post-legalization and in our public responses to the vaping crisis. 

While no one yet knows for certain what has been causing these injuries and deaths, it is readily apparent that unregulated and untested products are extremely dangerous and continue to infiltrate the market. Just last week, a mother and her two sons were arrested for allegedly illegally filling over 30,000 vape cartridges in Wisconsin from their home. That burgeoning illicit and untested market poses real risks to American consumers. And the best way to eliminate the illicit market is to create opportunities for consumers to purchase products from legal dispensaries and market awareness of the benefits of purchasing from those regulated markets. 

For example, if consumers know that legal dispensaries are selling regulated products that have been tested to improve consumer safety, then they will be more inclined to stop purchasing from the illicit market. People already know that when they step foot into a grocery store, the foods they eat and the drugs and dietary supplements they take are part of a supply chain designed to improve safety. That is because they have placed trust in the USDA and FDA. And no better way to build consumer confidence, than to make sure that trusted federal agencies are in charge of promoting public health in the cannabis industry. 

We can’t continue to leave the cannabis industry in a state of uncertainty. It’s time to deschedule, regulate at the federal level, and require mandatory lab testing. We must displace the illegal, unregulated and untested illicit market. There is no plan B. 

Andrew Kline is Director of Public Policy for NCIA and Chair of NCIA’s Safe Vaping Task Force 

What The Cannabis Industry – And Congress – Can Do To Help The Vaping Illness Outbreak

by Morgan Fox, NCIA Director of Media Relations

In recent weeks, the reports of mysterious respiratory illnesses tied largely to unregulated cannabis vaping products, as well as some other products including nicotine vapes, have turned from a trickle into a steady flow. The most recent count is at over 1000 cases, including more than a dozen deaths. One of the most troubling aspects of this outbreak is that it is still unknown what exactly is causing these illnesses. Early research seems to be pointing to additives or thickening agents as the most likely culprit, but other causes are being explored such as the presence of pesticides and fungicides that create dangerous byproducts, faulty delivery devices, problematic consumption patterns, and pre-existing medical conditions. 

One thread seems to tie all these cases together: almost all of them involved untested products that were produced and purchased on the illicit market.

At its roots, however, is the same thing that has caused most of the other problems associated with cannabis: prohibition.

Outdated federal policies are responsible for the existence of the underground market for this popular substance in the first place. Their dominance over this medically beneficial plant for nearly a century continues to block research, discourages states from regulating cannabis and making it legal for adults, prevents the federal government from establishing uniform safety standards or providing guidance to states that are implementing sensible policies, and make it harder for legal businesses to displace illicit operators around the country. This is in addition to the suffering and harm caused by the criminal enforcement of these policies, which disproportionately impacts low-income communities and people of color.

Unfortunately, some governmental agencies are glossing over these facts. Last month, Massachusetts instituted a four-month ban on all vaping products, and on Friday the Food and Drug Administration issued a warning urging people to stop consuming any vape products containing THC, despite THC itself and legal products generally not being implicated in these cases. Other states and localities are considering total bans as well.

The cannabis industry is deeply troubled by this outbreak, but we are also concerned that reactionary responses to it at the state and federal levels could make the problem even worse. Preventing the sale altogether of regulated and quality-controlled cannabis products could easily drive more consumers to purchase potentially dangerous products from the illicit market. The lack of competition from legal, licensed producers and retailers could also embolden irresponsible underground operators to drastically increase production in order to meet demand, as well as cut corners even further and make their products even more unsafe. Such reactions are a common response to tragedies like this, but they often cause more harm than good in the long run.

Rather, states should be reviewing their regulations regarding testing and labeling and should be in close contact with federal and state medical authorities so that they can incorporate the latest information into their regulatory response. Producers should also be reexamining their methods and avoiding the use of any additives that have so far been linked to these cases.

At the federal level, the best way to help fix this issue, as well as prevent further outbreaks from happening at all, is to end prohibition.

On October 3rd, NCIA delivered a letter to every member of Congress signed by more nearly 800 business leaders, advocates, and policy experts, which urges them to immediately work to remove cannabis from the Controlled Substances Act and work to regulate the substance at the federal level. This letter references a paper produced by NCIA’s Policy Council released on October 1 that suggests a regulatory framework for various cannabis products through existing federal agencies, most notably the FDA and the Alcohol and Tobacco Tax and Trade Bureau (TTB).

The letter closes with: “It is clear that the American public wants quality-controlled cannabis products made available for adults and patients. The recent news is, unfortunately, yet another reminder that there is no time to waste. Our industry wants to provide the products voters demand with a tireless focus on improving consumer safety. While state regulators and licensed businesses appear to be doing an excellent job at keeping potentially dangerous products out of the legal market, federal descheduling and regulation will allow more research and help states continue to improve their regulatory activities and oversight, as well as provide universal standards for safety. We are ready to work collaboratively with federal lawmakers, the same way we have at the state level for over a decade. Please let us know how we can help move the ball forward on descheduling legislation. Lives are literally at stake.”

That pretty much says it all. It is up to members of the legal cannabis industry to continue to prioritize consumer safety and do everything in their power to make sure they are going above and beyond state regulatory requirements in this area. But it is ultimately up to Congress to end prohibition, regulate cannabis intelligently, and help us replace the illicit market to the greatest extent possible. With your support, we can continue to work with lawmakers every day to help make this a reality.

 

 

Member Blog: Cannabis Seed To Sale Transparency Provides Solution To Vaping Illnesses

by Jessica Billingsley, CEO of Akerna
NCIA Board Member

The day I sat beside the MRI while my daughter’s mystery neurologic symptoms were investigated, I began my crusade for product transparency. I didn’t know then that transparency in products would become life’s work. On that day, I only knew my daughter risked potential long term physical and mental disability due to unknown causes. I then spent months, which turned into years, hunting for a solution to her neurologic events, which started with an unexplained fever that would sometimes develop into lesions in her brain causing varying symptoms depending on the location of the lesions. Often the symptom manifested as trouble walking; however, one heartbreaking time, she slurred her words and couldn’t remember many basic components of speech. 

She was diagnosed with recurrent ADEM, an autoimmune demyelinating illness that doctors didn’t understand and were at a loss to cure. The western medicine approach didn’t have an answer, and I wasn’t really surprised. Western medicine’s approach of diagnose and drug (or diagnose, surgery, and drug) rarely takes into account what we put in and on our bodies. And my gut told me I needed to take a closer look at foods and products to find the source of her illness. This is a lot easier than it sounds. We actually know very little about what’s in our products. There’s an assumption that harmful ingredients or additives have to be disclosed in products, but they don’t. My journey into product transparency — looking at ingredients, additives, and the chemicals used to make our products — led me to find a solution for my daughter that has resulted in her being 7 years in remission and counting.

My passion for saving my daughter and my tenacity in peeling back the layers in our consumer product goods supply chain left me with a sobering conclusion: Consumer transparency and public safety is not at the forefront of our current consumer goods regulations. We don’t have any requirements to give consumers transparency regarding what’s fully in the products we eat or absorb. That perspective is what inspired me to launch the first seed-to-sale tracking technology in 2010. I believed then that cannabis patients needed to know how their medicine was grown and the public needed assurances that we can identify the regulated, tested medicine from the illicit alternatives.

The number of vaping-related illnesses keeps climbing. The crisis has claimed at least six deaths and there are over 450 cases in 36 states and the U.S. Virgin Islands. And best, early thinking is additives – cutting agents, potentially Vitamin E – may be the culprit. I am reminded clearly of my daughter’s early years and my hunt for product transparency. We’ve done a lot of good with seed-to-sale tracking in cannabis. The regulated cannabis industry has the most transparent and accountable supply chain of any consumer packaged good. 

For nearly ten years, my team has refined a technology that pinpoints most every aspect of every gram of cannabis tracked in our system — the plot of land it was grown on, soil nutrients, water and light intake, additional ingredients for edibles, when it shipped out and in what batch, and finally where and when the product was sold and to what patient. The exactness and granularity of this data enables prompt reactions in times of crisis that narrows down areas/people of impact, points investigators to probable causes, and importantly allows consumers and patients to make informed decisions. 

As much as we do track in regulated cannabis, we need to track more. Most governmental compliance frameworks don’t require additives to be tracked and thus communicated to consumers and patients. We need to make this mandatory in our regulations.*

Consumers and the industry should rally around three things. First, the majority of the cartridges in this crisis were purchased on the illicit market with completely unknown ingredient sources, which gives more reason to legalize cannabis in every state for adult use. Second, legal markets should continue to implement seed to sale tracking compliance as table stakes. And third, we need to make additives information a requirement for cannabis oil manufactured products.

I knew the industry needed a means of monitoring products through its lifecycle and generating transparency and accountability to support the 3P’s — patient, product, and public safety. I know the data in our system has the power to do great good — for science and medicine, for food and agriculture, for communities and tax revenues, for governments’ ability to respond to issues and effectively direct investigations and enforcements. I contend that while the industry is part of the health crisis story today — we are part of the response tomorrow. I am as committed today as CEO of Akerna as I was when I started MJ Freeway; we can give consumers the full product transparency they deserve to make the best choices for their health. It’s what I want for my daughter, and it’s the solution I commit to deliver every day. 


Jessica Billingsley is a technology pioneer, solutions creator and industry leader, providing proven compliance software solutions to the cannabis market. She is the Chief Executive Officer of Akerna—the first cannabis compliance technology company to be traded on Nasdaq—making her the first CEO from this market space to bring a company to a major U.S. exchange. Jessica is also the CEO of Akerna’s flagship subsidiary—MJ Freeway. She established MJ Freeway in 2010 and it is the leading seed-to-sale regulatory compliance technology provider and developer of the cannabis industry’s first enterprise resource planning (ERP) platform. Akerna also offers Leaf Data Systems as a government resource for public sector compliance. Combined entities tracked more than $16 billion in world-wide, client cannabis sales to date. She is the first woman ever from the cannabis industry to receive the prestigious Fortune’s “Most Promising Women Entrepreneur Award” and is also recognized as one of Inc.’s “Female Founders 100.” Jessica received a degree in Communications and Computer Science from the University of Georgia and lives with her daughter in Denver.

 

Akerna’s MJ Platform includes “additives” as ingredients clients can use to communicate to patients any additives in a finished gram of oil. We believe additive ingredients should now be a required data field captured and communicated to patients, and we’re committed to training our existing client base on how to do so. 

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