Introduction 2 Boris Shcharansky

Introduction 2

Boris Shcharansky • • • Founder/CEO of Heartland Hemp Company in Des Moines, IA Entrepreneur and Hemp Advocate Eight years of direct business development experience across three start-ups Registered Lobbyist in Iowa Graduated: University of Pennsylvania • Iowa Connection: Ø 27 years Iowa resident Ø Valley High School graduate, West Des Moines Ø Des Moines area business owner since 2004 3

Iowa Hemp Association • Developed nationwide and global network of hemp industry professionals • Dedicated to the re-introduction and re-emergence of Hemp as a viable agricultural crop in Iowa • Co-wrote and introduced House Bill 470 in 2015 Ø Production, Marketing and Distribution of Industrial Hemp and Related Plant Materials Ø Never brought to committee vote Ø Died in first funnel • Committed to working with Iowa farmers to re-introduce hemp as a commercial crop • Developing relationships with farmers experienced in certified-seed growing 4

Federal Cannabis Legislation 5

House Legislation • • Senate Legislation HR 1014 – Marijuana Tax Revenue Act • S. 683 – CARERS Act HR 1013 – Regulate Marijuana Like Alcohol Act • S. 134 – Industrial Hemp Farming Act HR 1940 – Respect State Marijuana Laws Act • S. 1333 – Therapeutic Hemp Medical HR 1774 – Compassionate Access Act HR 1635 – Charlotte’s Web Medical Hemp Act HR 1538 – CARERS Act HR 525 – Industrial Hemp Farming Act 6

HR 1014 – Marijuana Tax Revenue Act of 2015 • Introduced 2/20/2015 by Representative Earl Blumenauer (D, Oregon) • 1% Chance of Passage, 7 co-sponsors (7 D) • Provides tax on marijuana enterprises • • Ø 10% on total sales for first 2 years Ø 15% in year 3 Ø 20% in year 4 Ø 25% in year 5 Requires federal permit to engage in marijuana enterprise Requires “study” of “characteristcs of marijuana industry” every 5 years Adds “marijuana” to Bureau of Alcohol, Tobacco, [and] Firearms (and Marijuana) Becomes applicable once cannabis is removed from all schedules under CSA (180 days) 7

HR 1013 – Marijuana Tax Revenue Act of 2015 • Introduced 2/20/2015 by Representative Jared Polis (D, Colorado) • 1% Chance of Passage, 18 co-sponsors (17 D, 1 R) • Directs Attorney General to remove cannabis in all forms from the Controlled Substances Act ØRemoves cannabis as a “dangerous drug” for purposes of federal criminal code provisions ØRemoves cannabis as “targeted drug” for purposes of youth anti-drug media campaigns • Gives FDA oversight of cannabis commerce in same way FDA regulates alcohol ØRenames Bureau of Alcohol, Tobacco, Firearms, and Explosives to Bureau of Alcohol, Tobacco, Marijuana, Firearms and Explosives • 2 -year period to conduct review of Act and assess its success 8

HR 1940 – Respect State Marijuana Laws Act • Introduced 4/22/2015 by Representative Dana Rohrabacher (R, California) • 0% Chance of Passage, 14 co-sponsors (8 D, 6 R) • Amends CSA to exempt any person acting in compliance with State cannabis laws 9

HR 1774 – Compassionate Access Act • Introduced 4/14/2015 by Representative Morgan Griffith (R, Virginia) • 4% Chance of Passage, 3 co-sponsors (3 D) • Directs Department of Health and Human Services to submit to DEA recommendation to transfer cannabis from Schedule 1 to another schedule 180 days after enactment. Ø DEA must re-schedule cannabis from Schedule 1 one year after enactment • Permits consideration of State-level scientific studies as evidence against Schedule 1 classification even if non-federal cannabis was used in study! • Amends CSA and Federal Food, Drug, and Cosmetic Act Ø Excludes Cannabidiol and allows states to enact laws to grow cannabis with < 0. 3% THC for CBD production Ø No provision to restrict physicians from prescribing CBD or medical cannabis in states allowing medical cannabis or CBD • Requires Attorney General to register cannabis researchers to executive branch agency to conduct research and requires adequate supply of research cannabis to be available 10

HR 1635 – Charlotte’s Web Medical Access Act • Introduced 3/25/2015 by Representative Scott Perry (R, Pennsylvania) • 2% Chance of Passage, 58 co-sponsors (28 D, 30 R) • Amends CSA and Federal Food, Drug and Cosmetic Act Ø Excludes Cannabidiol and Cannabidiol-rich plants from definition of “marijuana” Ø Plants must be less than 0. 3% THC • Act terminates after 3 years 11

HR 1538 – CARERS Act (S. 683) • Introduced 3/23/2015 by Representative Steve Cohen (D, Tennessee) • • • Ø S. 683 – Senator Cory Booker (D, New Jersey) 1% Chance of Passage, 22 co-sponsors (11 D, 11 R) Ø S. 683, 15 co-sponsors (12 D, 2 R, 1 I) Amends CSA Ø Moves cannabis from Schedule 1 to Schedule 2 Ø Excludes Cannabidiol from definition of marijuana, with plants required at less than 0. 3% THC Opens up banking for legal state cannabis industries Ø Protects financial institutions from an federal penalties for working with cannabis companies Directs DEA to approve at least three licenses under the CSA for federal research cannabis cultivation Directs Department of Veterans Affairs to authorize VA health providers to recommend cannabis for patients residing in states with legal medical marijuana programs 12

HR 525 – Industrial Hemp Farming Act (S 134) • Introduced 3/23/2015 by Representative Thomas Massie (R, Kentucky) Ø S. 134 - Senator Ron Wyden (D, Oregon) • 1% Chance of Passage, 64 co-sponsors (39 D, 25 R) Ø S. 134, 10 co-sponsors (5 D, 4 R, 1 I) • Amends CSA Ø Removes industrial hemp from definition of “marijuana” Ø Defines “industrial hemp” as Cannabis Sativa L. with concentration of THC at or below 0. 3% THC 13

S. 1333 – Therapeutic Hemp Medical Access Act • Introduced 5/13/2015 by Senator Cory Gardner (R, Colorado) • 2% Chance of Passage, 9 co-sponsors (5 R, 4 D) • Amends CSA Ø Exclude Cannabidiol and Cannabidiol-rich plants from definition of “marijuana” Ø CBD no longer controlled substance • Cannabis Sativa L. with < 0. 3% THC 14

Questions 15