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 “So when the antiquated federal prohibition on cannabis finally gets repealed, we need to have substantial legislation ready to help these small businesses survive.”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.”
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