Medical Marijuana

National Cannabis Industry Association

For Immediate Release -- WEDNESDAY, MAY 25

Bills to Ensure Fair Treatment of Medical Cannabis Industry Members Are Introduced in U.S. House

The logic behind the introduction of the “Small Business Tax Equity Act of 2011” and the “Small Business Banking Improvement Act of 2011” stands in sharp contrast to the actions of U.S. Attorneys who hope to keep medical cannabis sales underground, untaxed and unregulated

CONTACT: Steve Fox, NCIA dir. of public affairs at 202-379-4861 ext. 2 or [email protected]

WASHINGTON, D.C. – Today, for the first time in history, two bills that would benefit members of the medical cannabis industry were introduced in Congress. The introduction of the bills, which address banking and tax issues faced by medical cannabis providers, follow months of advocacy by the National Cannabis Industry Association (NCIA). The bills were part of a coordinated introduction of three bills to protect and support medical marijuana patients and providers in states where the use of medical marijuana is legal. The third bill, the “States’ Medical Marijuana Patient Protection Act,” would modify federal law so that individuals acting in compliance with state law are immune from federal prosecution.

            The industry bills were introduced with bipartisan lead sponsors. Rep. Pete Stark (D-CA) and Rep. Dana Rohrabacher (R-CA) are the lead sponsors of the “Small Business Tax Equity Act of 2011,” which would amend Section 280E of the Internal Revenue Code so that medical marijuana providers can take standard business deductions like any other business. The “Small Business Banking Improvement Act of 2011,” sponsored by Rep. Jared Polis (D-CO) and Rep. Ron Paul (R-TX), would allow financial institutions to work with medical marijuana businesses without the fear of running afoul of federal banking regulations.

            These bills have been introduced at a time when the nation is witnessing a strange reaction by U.S. Attorneys to the development of state-regulated systems of medical marijuana distribution. In October 2009, the Department of Justice issued a memo to federal prosecutors, instructing them to de-prioritize the prosecution of individuals acting in compliance with state medical marijuana laws. This has given states like New Mexico, Colorado and Maine the ability to establish tightly regulated system. Yet some U.S. Attorneys, faced with the prospect of sensible regulations being established in other states, have issued misleading and threatening letters to sidetrack legislative and administrative progress.

            “There are hundreds of thousands of medical marijuana patients in this country who benefit when they are able to purchase their medicine from safe, reliable and regulated establishments,” said Steve Fox, NCIA’s director of public affairs. “It is time for the federal government to acknowledge that these businesses are providing a service to their communities, not causing them harm. Without these regulated, tax-paying businesses, all medical marijuana sales would occur underground. The profits would bolster the criminal market and local, state and federal governments would receive no tax revenue. These medical marijuana providers are not looking for special treatment. They just want to be able to function in a manner similar to any other legal business. That is what these tax and banking bills would allow.”

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            The mission of the National Cannabis Industry Association is to defend, promote and advance the interests of the cannabis industry and its members. NCIA publicly advocates for the unique needs of the emerging cannabis industry and defends against those aiming to eliminate the legal market for cannabis and cannabis-related products. For more information, please visit www.TheCannabisIndustry.org.

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For Immediate Release: May 25, 2011

Patient Advocates Back Three Medical Marijuana Bills Introduced Today in Congress 

Advocacy Group Unveils New Program to Build More Skilled, Responsive Grassroots Force

Washington, DC -- Three medical marijuana bills were introduced today in Congress with support from patient advocates. The most significant of the three bills is one introduced by Congressman Frank (D-MA), which reclassifies marijuana from its current status as a dangerous drug with no medical value. Another bill, introduced by Congressman Polis (D-CO), will allow banks and other financial institutions to provide services to medical marijuana businesses without being subject to "suspicious activity" reporting requirements. The third bill, introduced by Congressman Stark (D-CA), changes the federal tax code "to allow a deduction for expenses in connection with the trade or business of selling marijuana intended for patients for medical purposes pursuant to State law."

"All of these bills will have a positive effect on hundreds of thousands of Americans and only a negligible impact to the rest of the country," said Steph Sherer, Executive Director of Americans for Safe Access (ASA), the country's largest medical marijuana advocacy group. "This kind of policy shift is a no-brainer and should garner the bipartisan support of Congress."

To shore up support for these and other local and state medical marijuana bills, ASA is launching a new advocacy program.

The introduction of Congressional legislation today comes as ASA is equipping patient advocates with new tools to lobby local, state and federal governments. ASA unveiled a new program today that establishes a "Medical Cannabis Think Tank "to provide activists the support they need to analyze pending or proposed legislation and to lobby for the best laws possible. To support the lobbying effort, ASA also unveiled its new "Online  Training Center," with more than 4 hours of educational streaming video and over 400 pages of instruction manuals and worksheets. ASA's program also includes an improved "Raid  Response Center" to better prepare for aggressive federal interference.

As part of its "Sick and Tired" campaign, ASA and others filed a writ Monday in the DC Circuit to compel the federal government to answer a 9-year-old petition to reclassify cannabis. The Coalition for Rescheduling Cannabis (CRC) argued in the writ that the government has unreasonably delayed an answer to the petition in violation of the Administrative Procedures Act. "The Drug Enforcement Administration has the opportunity right now to address the needs of patients across the country by reclassifying cannabis," continued Sherer. "However, since Congress can also reclassify cannabis, we are urging passage of the Frank bill in order to take advantage of all points of leverage."

If passed, the Frank bill would not only recognize marijuana's medical value, but also provide a medical necessity defense in federal court, a right not currently afforded to patients and caregivers who are in compliance with their local and state laws. The Frank bill would also usher forth greater research into the therapeutic properties of cannabis and create incentives for the development of new cannabis-based medication.

Advocates hope the Polis bill, if passed, will end the current ban on services for medical marijuana businesses by institutions like Wells Fargo, CitiCorp and Bank of America. The Stark bill has the potential to end dozens of audits by the Internal Revenue Service (IRS) currently taking place, and settle once and for all whether the IRS can demand tax on gross or just net proceeds.

Further information:

Rescheduling bill (Frank):

http://AmericansForSafeAccess.org/downloads/Frank_bill_2011.pdf

Banking bill (Polis):

http://AmericansForSafeAccess.org/downloads/Polis_bill_2011.pdf

IRS bill (Stark):

http://AmericansForSafeAccess.org/downloads/Stark_bill_2011.pdf

ASA Think Tank: http://AmericansForSafeAccess.org/section.php?id=384

ASA Online Training Center:

http://AmericansForSafeAccess.org/article.php?list=type&type=385

ASA Raid Response Center:

http://AmericansForSafeAccess.org/article.php?list=type&type=168

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