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] [12]
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 [13].
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