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

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

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

SAFE Banking

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

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

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

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

Comprehensive Reform

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

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

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

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

Appropriations

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

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

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

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

 

Let the 117th Congress Begin

by Madeline Grant, NCIA’s Government Relations Manager  

There is momentum brewing in Congress as we enter the 117th session. With Democrats controlling the House of Representatives, Senate, and White House, we certainly feel a hopeful shift in Washington that is exciting for the cannabis community. Last Congress, we saw various cannabis reform bills move through the legislative process on the House side, however, those efforts were then stalled in the Republican-controlled Senate. As we enter a new year, there’s also a new congressional dynamic and that gives us hope, for some different outcomes.

Last Friday, our Government Relations team met virtually with Senate Majority Leader Chuck Schumer (D-NY), Senate Finance Committee Chair Ron Wyden (D-OR), Sen. Cory Booker (D-NJ), and various stakeholders and advocates. These three key Senators are preparing to release new progressive, comprehensive cannabis legislation sometime in the early part of this year. The group discussed a wide variety of topics related to reform and focused primarily on cannabis justice and removing marijuana from the Controlled Substances Act. We, the National Cannabis Industry Association, are here to be a resource as Congress moves the ball forward and we’re proud to represent your business in Washington, D.C.

On February 1, the three Senators released a joint statement. They stated, “The war on drugs has been a war on people — particularly people of color. Ending the federal marijuana prohibition is necessary to right the wrongs of this failed war and end decades of harm inflicted on communities of color across the country. But that alone is not enough. As states continue to legalize marijuana, we must also enact measures that will lift up people who were unfairly targeted in the war on drugs.” 

“With the launch of our DEI initiatives, NCIA is committed to ensuring that restorative justice and opportunities for Black and brown entrepreneurs in the burgeoning cannabis industry are at the center of our work,” said Tahir Johnson, NCIA’s Business Development Manager, and DEI Program Manager. “As the industry’s leading trade association, we’ve taken strides to ensure that not only our membership but also the Board of Directors and thought leadership is representative of that work. Through our policy and government relations work, we aim to make certain that social equity remains at the forefront of legislative conversations this session.” 

Undoubtedly, there is a lot of work that needs to be done, and as a unified front, we can accomplish this successfully. As the government relations team discussed cannabis policy in a virtual meeting last Friday, we saw an open discussion for all organizations, advocates, and others. The Senators underscored the importance that we are united in our efforts to pursue reform.

Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations, attended the virtual meeting. She said, “The meeting with Leader Schumer and Senators Wyden and Booker was phenomenal. Beyond that, it was historic. I’m looking forward to working with those offices on issues like tax policy, regulations, and creating a diverse and equitable industry that allows businesses of all sizes to thrive. I’m also honored to work alongside the other stakeholders included on the call (and others) this session to pass exciting, groundbreaking legislation.”

The NCIA Government Relations team hopes to hear from you, our members, about any questions or concerns you have. As we continue to meet with lawmakers, we will keep you attuned to policy reform moving forward. If you haven’t checked out NCIA Connect, our online platform for networking with your fellow NCIA members, make sure you log in today to stay even more inspired, informed, and connected. 

 

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