Supporting Our Cannabis Champions
by Madeline Grant, NCIA Government Relations Manager
With all the action in the 116th Congress so far, NCIA strives to support as many cannabis champions on Capitol Hill as possible. It is key to keep Members of Congress that support cannabis reform in the halls of Congress, as they will continue to push the momentum forward through legislation, committee activity, and education. Our NCIA-PAC Leadership Circle members make this support possible, as their contributions go straight towards Members of Congress. Below are a few events and fundraisers where we utilized PAC funds to support our issues and Members on the Hill.
NCIA staff attended Congressman Ed Perlmutter’s fundraiser in celebration of the passage of the Secure and Fair Enforcement (SAFE) Banking Act on the House side. Rep. Perlmutter is the lead sponsor of the SAFE Banking Act and because of his leadership and hard work over the years, we are seeing more success this congress than ever before!
As we are approaching the Holiday season, Members of Congress are getting festive. NCIA hosted Congressman McNerny’s Holiday Party. Our D.C. staff is making use of our new office, as we’ve hosted a handful of holiday parties this year full of conversations, hot chocolate, and cookies for all.
Another festive holiday party hosted at our D.C. office with Congressman Earl Blumenauer. The Congressman gave everyone a mini fruit cake, a famous annual tradition in the Blumenauer office. With all the momentum this congress, Congressman Blumenauer has been one of our biggest champions in cannabis reform.
Mike and I attended Rep. Porter’s lunch fundraiser this year. It is always a pleasure discussing policy issues with the congresswoman. As a freshman Member of Congress, Rep. Porter has been fighting for the cannabis industry since day 1. We had the pleasure of meeting the Congresswoman when she entered into California’s 45th district race and continue to support her with NCIA’s PAC funds.
Our Director of Government Relations, Michael Correia, attended Rep. Lee’s birthday this past July. He was able to spend some time with Speaker Pelosi and Rep. Lee while discussing cannabis reform. As you know, the momentum in the 116th congress has been momentous so it’s important to thank the Members of Congress that helped make it happen.
How do we support our champions?
NCIA’s Political Action Committee (PAC) supports our champions on Capitol Hill. With NCIA-PAC funds we are able to contribute PAC dollars to the Members of Congress above and many more. These funds go to their campaigns to help them get reelected and stay to fight for us on Capitol Hill. If you are interested in learning more or getting involved with the NCIA-PAC, please send an email to Madeline@TheCannabisIndustry.org. Thank you to our PAC Leadership Circle members that help support cannabis reform on Capitol Hill- without you, we would not be able to support our champions.
New Cannabis Banking Action in the House
On Tuesday, February 2, 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. The bill was introduced by Rep. Blaine Luetkemeyer (R-MO), as a response to the Department of Justice’s Operation Choke Point, which puts banks under scrutiny for their work with businesses the DOJ considers at risk for fraud or illegal activities, even when the businesses themselves are operating legally. Rep. Luetkemeyer’s bill would limit law enforcement’s ability to restrict access to the banking system.
To watch the hearing, view here:
https://rules.house.gov/video/rules-committee-hearing-hr-766-and-hr-1675
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. In addition to Congressman Perlmutter’s testimony, Representatives Jared Polis (D-CO) and Alcee Hastings (D-FL) spoke in favor of the amendment.
When NCIA first learned of the hearing last week, our Government Relations office coordinated with Rep. Perlmutter’s staff and advocated for the amendment with Rules Committee Members and staff. Although our cannabis champions on Capitol Hill spoke eloquently on behalf of the amendment, the committee ultimately voted it down. The 3-9 vote broke along party lines, with all Democrats voting in favor and all Republicans voting in opposition.
NCIA salutes all our Capitol Hill advocates who continually stand up for the cannabis industry, and especially Rep. Perlmutter for taking the lead on banking reform. Although this effort fell short in the end, it served as a powerful message to Members of Congress that NCIA and its allies will look for every opportunity to fight for the fairness and respect our industry deserves.
This year will be truly historic for cannabis reform and it’s time for Congress to clarify the conflict between the federal government and the states on cannabis and address this vital issue. NCIA continues to advocate on your behalf every day so that all legal, state-sanctioned cannabis businesses may eventually access financial services and stop being discriminated against.
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.
Follow NCIA
Newsletter
Facebook
Twitter
LinkedIn
Instagram
News & Resource Topics
–
This Just In
Committee Blog: Cannabis and Cardiovascular Disease
Rooted in Community: Fox Rothschild