ERIN MOFFET for THE LIAISON GROUP ON BEHALF OF THE NATIONAL CANNABIS ROUNDTABLE

Banking BAN

The National Cannabis Roundtable supports the Secure and Fair Enforcement (SAFE) Banking Act (HR2891/S.1323). Cannabis businesses do not enjoy access to the same banking services enjoyed by every other legally operating business in the United States. The SAFE Banking Act would create a safe harbor for banks to service cannabis industry clients thus enabling cannabis businesses access to checking accounts, lines of credit and other standard business banking services. NCR's support of SAFE Banking included discussions regarding this policy and the urgent need for broader access to financial resources for state-legal cannabis businesses to be addressed by this bill.

Contacted: HOUSE OF REPRESENTATIVES; SENATE

Bills named: H.R. 2891 (118th), S. 1323 (118th)

Budget/Appropriations BUD

NCR supports the expansion of protections for the cannabis industry through the appropriations process, namely the expansion of medical protections to include adult use, tribal sovereignty, increased veterans access, and protecting emerging research as well as the inclusion of SAFE Banking and Fairness in Federal Employee Drug Testing language in appropriations amendments. NCR also supports the removal of the Harris Rider which prevents the District of Columbia from legalizing commercial cannabis sales.

Contacted: HOUSE OF REPRESENTATIVES; SENATE

Taxation/Internal Revenue Code TAX

Currently, IRC 280E[1] prevents any business trafficking in Schedule I or Schedule II controlled substances from taking any business deductions or credits - except for cost of goods sold.This means cannabis businesses doe not have access to tax deductions or tax credits that are routinely offered to other domestic industries. Instead, cannabis companies are often faced with an effective tax rate of 70% or more. NCR discussed policy provisions that would provide tax equity for state-regulated cannabis companies by amending Section 280E of the tax code, including H.R. 2643, the Small Business Tax Equity Act of 2023.

Contacted: SENATE; HOUSE OF REPRESENTATIVES

Bills named: H.R. 2643 (118th)

Law Enforcement/Crime/Criminal Justice LAW

NCR supported efforts to reform criminal justice policy and the different treatment on the federal and state level of individuals incarcerated for cannabis offenses including the following bills from the 117th Congress: the HOPE Act (H.R. 6129), the MORE Act (H.R. 3617) and the Marijuana Misdemeanor Expungement Bill (H.R. 8557). NCR also supports the ongoing scheduling review process being undertaken by the Administration and efforts that have the end goal of legalization.

Contacted: HOUSE OF REPRESENTATIVES; SENATE; Food & Drug Administration (FDA)

Bills named: H.R. 6129 (118th), H.R. 8557 (118th), H.R. 3617 (118th)

Financial Institutions/Investments/Securities FIN

NCR supports policy provisions that would provide a safe harbor for any financial institution or resource that services state-regulated cannabis businesses, to include access to the U.S. senior exchanges, which are currently accessible only to foreign cannabis companies but not domestic entities. This safe harbor language is similar to the CLIMB Act (H.R. 8200 in the 117th), a bill that provides safe harbors for financial institutions including lenders, government programs, and capital markets. NCR discussed this policy with House and Senate offices but no bill has been introduced in the 118th Congress.

Contacted: HOUSE OF REPRESENTATIVES; SENATE

Bills named: H.R. 8200 (118th)

Government Issues GOV

As the federal government considers how to reconcile state legal cannabis programs with cannabis' federal illegality, the National Cannabis Roundtable supports legislation and regulatory paradigms that decriminalize cannabis, remediate the harm of the failed War on Drugs, ensure the highest standards of consumer safety, respect existing cannabis supply chains and provide equitable financial treatment for cannabis businesses. NCR also supported the reintroduction of the PREPARE Act (HR 2598), which directs federal agencies as to best practices and regulations upon federal legalization.

Contacted: Food & Drug Administration (FDA); HOUSE OF REPRESENTATIVES; SENATE

Bills named: H.R. 2598 (118th)

Consumer Issues/Safety/Products CSP

Educating members of Congress on the importance of well-tested and well-regulated cannabis products.

Contacted: HOUSE OF REPRESENTATIVES; SENATE