While pushes for cannabis reform typically come from advocates and organizations within the industry, one alcohol industry trade association is now taking a stand for federal cannabis legalization and regulation of adult-use cannabis.
Wine & Spirits Wholesalers of America (WSWA) shared a letter with members of Congress, pushing for federal legalization and regulation of recreational cannabis through applying regulations similar to those implemented for alcohol, according to a news release.
The letter included a comprehensive federal regulatory framework alongside warnings that addressing the issue in a “piecemeal manner” will result in federal legalization anyway, without proper measures addressing product safety, trade practices or interstate sales and enforcement.
“We have reached this position because the current conflict between state and federal law is not only causing adverse consequences for consumers and non-consumers of cannabis but will also have long-term public health and safety costs that are too great to ignore,” the letter opens.
WSWA is the first alcohol industry group to speak out in this way in favor of federal adult-use cannabis legalization and regulation.
Founded in 1943, it’s also one of the largest alcoholic beverage trade groups in Washington, representing the distribution tier of the wine and spirits industry. WSWA has more than 380 member companies in 50 states and the District of Columbia, with its members distributing more than 80% of all wine and spirits sold at wholesale in the U.S.
WSWA CEO and President Francis Creighton said that the “time has come” for Congress to federally legalize and regulate cannabis, adding, “The success of our alcohol regulatory system offers a proven model for cannabis regulation, one that will promote public health and safety as well as a fair and competitive marketplace.”
The framework draws on long-established federal laws surrounding the regulatory framework in the alcohol industry. It emphasizes public safety and accountability, providing a transparent and effective framework for adult-use cannabis production, testing, distribution and tax collecting, according to WSWA.
The association outlined four pillars for comprehensive federal legalization and oversight of the adult-use cannabis supply chain: the federal permitting of cannabis producers, importers, testing facilities and distributors; the federal approval and regulation of “cannabis products and product labels”; the efficient and effective collection of federal excise tax and effective federal measures to ensure public safety.
Creighton nodded to the successful state regulation of alcohol for nearly 90 years, adding that states should retain the authority to regulate cannabis in a way that best fits their local needs, including being able to choose against legalizing cannabis in a given state.
“Federal regulation of cannabis should focus on issues of public health and safety and interstate commerce, such as standard potency measurements, labeling and marketing guidelines, the licensing of producers, testing facilities and distributors, collecting excise taxes, and properly funding impaired driving prevention and enforcement,” Creighton added.
Additionally, Creighton said that legalization efforts that fail to include these “critical regulatory provisions” open up consumers, communities and industry businesses to risks that carry the potential of negatively impacting legalization, “already being seen in the marketplace without federal oversight.”
As part of its effort, WSWA is actively briefing members of Congress and staff on the importance of a strong regulatory structure based on the alcohol industry’s regulatory framework, acting as a model of public safety, responsible distribution and retail practices.
POLITICO’s Natalie Fertig reported that WSWA feels they can bring knowledge on how the Alcohol and Tobacco Tax and Trade Bureau regulates an industry that produces and sells an intoxicating product.
“Most proposals for cannabis decriminalization, like Senate Majority Leader Chuck Schumer’s Cannabis Administration and Opportunity Act, divide oversight and regulation of the industry between the Food and Drug Administration and the TTB, which is part of the Treasury Department,” Fertig wrote.
Read the “WSWA Principles for Comprehensive Federal Legalization and Oversight of the Adult-use Cannabis Supply Chain” in full here.
