HOW CAN WE NORMALIZE
THE CANNABIS INDUSTRY?
The NCRMA’s primary political concern, as a risk management and insurance focused association, is to represent the best interests of cannabis business owners. While there are many political organizations and associations lobbying Washington and their state governments for legalization, decriminalization, and the expungement of criminal records for low-level offenders, the NCRMA, as the industry’s only risk management association will focus entirely on legislation that affects the financial bottom-line of cannabis business owners.
Our Policy Plan
As the NCRMA focuses its attention to the development and release of an association insurance product for its members, the current policy plan is limited to two very public and pertinent legislative matters:
The NCRMA also serves to educate members on evolving Bills, updated legal issues, and new regulations. The most current Act being discussed by the House is the SAFE Banking Act. As of 9/26/19, the Bill was passed! The SAFE Banking Act is very important to the cannabis industry, so we linked it to an entire new page with the latest.
The CLAIM Act introduced on July 22 by US Sen. Bob Menendez, D-NJ, promises to do for insurance what the SAFE Act would do for banking. The NCRMA supports the CLAIM Act.
Reform Section 280-e
Section 280e of the Internal Revenue Service code is a relic from the 1980s “War on Drugs” that doesn’t fit with today’s modern, legal cannabis industry. Cannabis entrepreneurs operating legally in the states are required to pay federal income taxes. Yet, they cannot deduct many regular costs of doing business on their federal returns, an unfair impact which also carries over to state returns for many.
The unfair, ongoing result of 280e is that cannabis entrepreneurs pay staggeringly high federal income taxes, with some estimated rates as high as 70 or even 90 percent.
NCRMA will join with fellow cannabis industry advocates in targeted efforts to repeal 280e. We give our grassroots support to federal lawmakers who advance meaningful legislation on this issue.
The STATES Act of 2018
The Strengthening the Tenth Amendment Through Entrusting States (STATES) Act was a bill proposed in the 115th United States Congress that would recognize legalization of cannabis and the U.S. state laws that have legalized it through their legislatures or citizen initiative. The act would amend the Controlled Substances Act of 1970 to exempt from federal enforcement individuals or corporations in states who are in compliance with U.S. state, U.S. territory and the District of Columbia, or tribal law on cannabis, with certain additional provisions such as minimum ages.
Just as the NCRMA listens to its members as to influence our insurance product and additions of risk management service partners, we also value the political input of cannabis business owners. We will employ the influence of our rapidly growing association to impact change for the antiquated and unfair regulations prohibiting normal business operations. Together, we will normalize this industry so that businesses of all sizes have the opportunity to succeed.