MJBizMag October 2020 - 10

FiveQuestions | with Saphira Galoob
The Roads Less Traveled
Washington DC lobbyist discusses how election could impact marijuana
reform and legalization
By John Schroyer
S
aphira Galoob is one of a handful
of lobbyists in Washington DC who
have been pushing federal marijuana
reform efforts on behalf of businesses for
several years. The client list of The Liaison
Group, where Galoob is principal and CEO,
includes multistate operator Acreage Holdings,
the National Cannabis Roundtable and the
California Cannabis Industry Association.
Marijuana Business Magazine caught
up with Galoob to get her predictions on
possible changes to federal cannabis law, depending on
outcomes of the November election.
What do you expect to happen with federal
marijuana reform if Democratic presidential
nominee Joe Biden wins the White House
and Democrats take control of both chambers
of Congress?
I don't think we would get legalization on the first day. If you
look at what the Democratic platform has been, and where
Biden has been both historically and recently, I think we
get a return of a climate in the Department of Justice to the
Obama era. So, a climate of nonenforcement.
There's an uptick in audits by the IRS, and I think that
quiets down a bit. And maybe even a reinstatement of a Cole
Memo-type guidance-protections from interference for the
industry. But I don't think we get legalization right off the bat.
I do think the budget rider that protects the industry (from
federal interference) will get addressed. But from the larger
reform picture, I think the predictability is less certain.
The DNC platform very specifically rejected the idea of
legalization-and even (marijuana reform advocate U.S.
Rep.) Barbara Lee, for whatever reason, was in favor of
that rejection.
The momentum that we see ... may not manifest in the
way folks are hoping for in the short run. It's about what's
practical politically.
If the SAFE Banking Act doesn't stay in the COVID
package, that's a piece of legislation that came out of the
House and had the support of every Democrat, so I do think
we get SAFE Banking earlier rather than later.
I think that adding (Kamala Harris to the ticket as his
10 Marijuana Business Magazine | October 2020
running mate) probably positions Biden to
refine his platform.
The legalization of medical cannabis, that
platform moves cannabis to Schedule 2. That
doesn't solve interstate commerce or 280E (tax
law) or banking. The pathway is not straight.
It's very circuitous and complex. And while Sen.
Harris was the Senate lead on the MORE Act, in
terms of her walking into Congress, you should
look at other things that would be top of mind.
If the reforms you mentioned did occur, how
do you think that would transform the industry
landscape? For instance, could interstate
commerce become a reality?
Interstate commerce means the ability to drive California
cannabis to Maine.
Let's say California wants to sell its cannabis in
Oklahoma: You could possibly drive through the states,
but it doesn't mean you're going to be able to sell your
California cannabis in Oklahoma unless Oklahoma wants
California to be able to sell its cannabis.
So I think we need to be very precise about what we
mean by the concept of interstate commerce. Can we
traverse states legally? Or what's the paradigm by which
California can sell its cannabis in any state?
I don't envision a scenario in which states are going to
relinquish their oversight or their regulations of the sale and
distribution of cannabis. Now, it may be that some states
decide they prefer that California marijuana be sold in their
state, but maybe they don't want to undermine the existing
state paradigm trajectory by allowing that.
What do you expect to happen if Trump wins
reelection and the GOP keeps the Senate?
The very worst-case scenario for cannabis is if Republicans
hold the Senate and (Colorado's Republican incumbent
U.S. Sen.) Cory Gardner does not return. That would be an
absolutely abysmal situation for us because he has been the
champion in terms of educating, socializing and familiarizing;
he really understands how to talk cannabis to conservatives.
The other thing that happens is if (Kentucky Republican
and Senate Majority Leader Mitch) McConnell holds the
MJBizMag October 2020

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