New Congressional Bill Would Allow Interstate Marijuana Shipping By USPS To Help Small Growers Compete Against Large Corporations

A pair of Democratic congressional lawmakers have introduced a bill
intended to help small marijuana growers compete against large corporations
when cannabis is federally legalized—proposing to give them the ability to
ship and sell products directly to consumers within and across state lines
via the U.S. Postal Service (USPS) and commercial carriers.

The legislation—titled the “Small and Homestead Independent Producers
(SHIP) Act—is being sponsored by Reps. Jared Huffman (D-CA) and Val Hoyle
(D-OR). It represents a slightly revised version of a measure filed two
sessions ago that was not ultimately enacted.

As Congress continues to work toward ending cannabis prohibition, there
have been concerns that smaller businesses will struggle to compete against
the handful of multi-state operators that have the resources and
infrastructure to quickly expand, threatening to further consolidate the
market when the federal floodgates finally open.

The SHIP Act is designed to minimize that risk and maximize opportunities
for those smaller farmers and producers.

“Larger, commercialized cannabis operators are infiltrating the market and
squeezing out our local farmers in the process,” Huffman said in a press
release on Tuesday. “So when the antiquated federal prohibition on cannabis
finally gets repealed, we need to have substantial legislation ready to
help these small businesses survive.”

“My legislation would ensure that folks can ship their products straight to
consumers, which would both help expand small businesses and ensure farmers
stay afloat,” he said. “When full legalization is guaranteed, we must
commit to not leaving our smallest family-farmers behind.”

The proposal has been amended in certain ways compared to the original
version, including a new requirement that the Postal Service or “any
private or commercial interstate carrier” transporting cannabis must verify
that recipients of cannabis products are at least 21 years old.

It also clarifies provisions related to federal preemption of state
marijuana laws as it concerns interstate commerce, making it clear that
states that prohibit cannabis can continue to do so, except that they can’t
prevent the transportation of marijuana across their borders. On the flip
side, states with legal marijuana programs would be preempted by federal
law “to the extent that such laws restrict the interstate or intrastate
shipment of cannabis or a cannabis product directly to an individual with
respect to whom the possession of cannabis or a cannabis product is lawful
under the laws of the State.”

Finally, the latest version includes a new section that would amend U.S.
postal laws by stipulating that the “Postal Service is authorized and
directed to permit the transmission in the mails, under regulations to be
prescribed by it, of cannabis.”

“For years, the federal government has failed to keep up with the changing
pace of our economy, and the cannabis industry has suffered the
consequences,” Huffman said. “Current federal prohibition standards are
undeniably outdated, and we need this legislation ready for the day they
are repealed. My bill would ensure California farmers and producers can
ship their products straight to consumers, which inherently protects our
local agriculture industry and small businesses up and down the North
Coast.”

Direct-to-consumer models have historically benefitted small farmers in
traditional agriculture markets, allowing them to bring their products to
market without going through third-party distributors or retailers that
would require additional spending.

The SHIP Act would extend that marketing opportunity to the cannabis
sector, but only after marijuana is federally descheduled.

“Nearly 15 years into the experiment of state-level cannabis legalization,
the cracks in the system are clear: small and craft producers are being
pushed to the margins, safe access for consumers and patients is shrinking,
and the industry is consolidating into the hands of a few,” Ross Gordon,
co-founder of the National Craft Cannabis Coalition (NCCC) and a policy
analyst at Origins Council, said.

“Without direct-to-consumer shipping, federal cannabis legalization risks
reinforcing these failures instead of correcting them,” he said. “The SHIP
Act is a make-or-break policy for the future of small cannabis businesses
in California and across the country.”

Frederika McClary Easley, president of the Minority Cannabis Business
Association (MCBA), said the “regulation of cannabis has, unfortunately,
not equated to adequate access.”

“Many patients and consumers navigate plant deserts that have been created
due to municipal opt-outs and zoning restrictions,” she said. “The SHIP Act
will help to address this while prioritizing access for small craft
producers, which in turn positively impacts their success and
sustainability. MCBA is proud to support this piece of federal legislation
that recognizes the importance of craft growing and small businesses as the
bedrock of this burgeoning industry.”

The text of the legislation states that a “small cultivator of cannabis and
a small manufacturer of a cannabis product located in a State in which such
cultivation or manufacture is lawful by that small cultivator or small
manufacturer, as applicable, may ship and sell cannabis or a cannabis
product to an individual located in that State or another State in which
possession of cannabis or the cannabis product is lawful by that
individual, using the United States Postal Service or any private or
commercial interstate carrier.”

Small cultivators are defined as those who grow up to one acre of “mature
flowering cannabis plant canopy” for outdoor cultivation, up to 22,000
square feet of cannabis canopy using greenhouses or up to 5,000 square feet
for indoor cultivation.

For manufacturers, they would meet the definition of a small operation if
they produce “a manufactured cannabis product, including a salve, tincture,
edible, or concentrate, with a gross annual revenue of less than
$5,000,000, inclusive of all cannabis product manufactured by that person.”

“California has made indelible contributions to the global medical and
craft cannabis movements, but today the Golden State’s small, independent,
and homestead cannabis farmers are facing existential barriers to their
success,” NCCC co-founder and Origins Council executive director Genine
Coleman. “Without addressing the market access crisis facing craft
producers all across the nation, patients and consumers are at risk of
irreversibly losing access to important products and genetics. We are
grateful to Rep. Huffman for his leadership in introducing the SHIP Act,
which offers a definitive solution to this crisis.”

The bill is also being backed by the National Cannabis Industry Association
(NCIA), Drug Policy Alliance (DPA), Parabola Center, Marijuana Justice,
Veterans Cannabis Coalition and more.


*— Marijuana Moment is tracking hundreds of cannabis, psychedelics and drug
policy bills in state legislatures and Congress this year. Patreon
supporters pledging at least $25/month get access to our interactive maps,
charts and hearing calendar so they don’t miss any developments.*


*Learn more about our marijuana bill tracker and become a supporter on
Patreon to get access. —*

Meanwhile, in March, California officials unveiled a report on the status
and future of the state’s marijuana market—with independent analysts hired
by regulators concluding that the federal prohibition on cannabis that
prevents interstate commerce is meaningfully bolstering the illicit market.

Gov. Gavin Newsom (D) did sign a bill in 2022 that would have empowered him
to enter into interstate cannabis commerce agreements with other legal
states, but that power was incumbent upon federal guidance or an assessment
from the state attorney general that sanctioned such activity.

Following a review of the policy proposal, however, California Attorney
General Rob Bonta’s (D) office ultimately determined in 2023 that the state
could put itself and its employees at “significant legal risk” of federal
enforcement action if it were to authorize interstate marijuana commerce.

A bipartisan congressional bill that was reintroduced in April to end
federal marijuana prohibition in states that have legalized it also
provides for lawful interstate commerce.

*Photo courtesy of Mike Latimer.*

The post New Congressional Bill Would Allow Interstate Marijuana Shipping
By USPS To Help Small Growers Compete Against Large Corporations appeared
first on Marijuana Moment.