Sneak Peak: Cannabis Industry Accounting and Appraisal Guide

The cannabis industry has been steadily growing for years and, with it, an ever-expanding plethora of unique accounting and regulatory concerns. But where did this all start? Let's take a step back and peer into the past of cannabis regulation. The following excerpt comes directly from the Cannabis Industry Accounting and Appraisal Guide, 2nd edition.

Recent Cannabis Reform Efforts

U.S. Representative Maurice Hinchley first introduced the Rohrabacher-Farr amendment in 2001 to protect medical cannabis businesses from the DOJ by restricting DOJ funding for cannabis enforcement. Annual renewal is required. The House passed the bill after six attempts in May 2014 and for a second time in June 2015. In January 2017, U.S. Representative Sam Farr retired and Representative Earl Blumenauer took over as lead co-sponsor. By 2018, the House voted on this bill nine times, and it remains part of the U.S. spending bill. Controversy continues to surround cannabis, as indicated by the numerous pieces of legislation introduced to Congress since 2013, such as the following:

  • Ending Federal Marijuana Prohibition Act of 2013 (H.R.499);
  • Respect State Marijuana Laws Act of 2013 (H.R. 1523);
  • States’ Medical Marijuana Patient Protection Act of 2013 (H.R. 689);
  • Truth in Trials Act of 2013 (H.R. 710);
  • National Commission on Federal Marijuana Policy Act of 2013 (H.R. 1635);
  • No Welfare for Weed Act of 2014 (H.R. 4142);
  • Unmuzzle the Drug Czar Act of 2014 (H.R. 4046);
  • Charlotte’s Web Medical Hemp Act of 2014 (H.R. 5226);
  • Clean Slate for Marijuana Offenses Act of 2015 (H.R.3124);
  • Regulate Marijuana Like Alcohol Act of 2015 (H.R.1013);
  • Marijuana Tax Revenue Act of 2015 (H.R. 1014);
  • States’ Medical Marijuana Property Rights Protection Act of 2015 (H.R. 262);
  • Veterans Equal Access Act of 2015 (H.R. 667);
  • Industrial Hemp Farming Act of 2015 (S. 134); and
  • Small Business Tax Equity Act of 2015 (S. 987)

On Jan. 4, 2018, then U.S. Attorney General Jeff Sessions rescinded the Cole Memo. Many in the industry felt the Cole Memo offered a certain level of security, protecting them and their businesses from federal intervention. Strengthening the 10th Amendment Through Entrusting States (STATES) Act (S. 3032) was initially introduced by Senators Cory Gardner and Elizabeth Warren in 2018. The STATES Act would have amended the Controlled Substances Act of 1970 to exempt from federal enforcement individuals or corporations in states not in compliance with state cannabis laws.

This is just the beginning when it comes to the recent history behind cannabis reform. Learn how this complex and fascinating history weaves its way into modern regulations with the Cannabis Industry Accounting and Appraisal Guide, 2nd edition!