NCIA’s member spotlight for the month of February takes us to Oregon, where we speak with Sam Chapman, co-founder of New Economy Consulting, a political and business consulting firm for the legal cannabis industry. Sam’s background includes consulting for statewide political campaigns, small business development and media relations, as well as direct involvement as a lobbyist for drug policy reform at the local, state, and federal levels. Having Sam in the room at an NCIA event always raises the dialogue with his insight and expertise, and we’re glad to have him as part of the NCIA community.
Cannabis Industry Sector:
Regulatory Compliance and Consulting
NCIA Member Since:
December 2013
Who does New Economy Consulting work with?
NEC provides a range of services and support to cannabis entrepreneurs, investors, and local governments. We specialize in drafting state license applications, writing and navigating local regulations, screening compliant real estate, regulatory compliance support, and political advocacy.
The New Economy Consulting Team
How do you serve your clients?
On behalf of our clients, NEC handles all aspects of licensure for retail, wholesale, production, and processing facilities. We provide clients with a holistic approach, encompassing services from locating and screening compliant property, to compliant buildout design and supervision, to local and state compliance inspection support.
What makes NEC unique?
NEC is unique in that our business consulting services are directly informed by our active political lobbying. Our researchers maintain a finger on the daily pulse of regulatory movement in the industry at both the state and local level. We strategically deploy our proprietary research in support of our client’s business ventures. An example of where NEC goes above and beyond for clients is in tracking the local regulations of over 90 Oregon counties and cities. This body of research allows NEC to quickly and confidently screen property and determine that property’s compliance with current and expected rules and regulations.
Sam Chapman, NEC co-founder
What has been NEC’s largest impact on the Oregon cannabis industry?
Before I co-founded NEC, I helped write and pass HB 3460, which legalized and regulated medical dispensaries in Oregon. NEC has successfully championed many pro-industry causes including raising more than $30,000 in support of Measure 91, legalizing the adult use of cannabis.
What should clients know before contacting NEC?
NEC is a boutique firm with a strong commitment to our clients. We choose our client and partner relationships with care. Our ideal client is well-capitalized, with business experience inside and out of the cannabis industry, has a clear vision of their project goals, and shares in our vision of creating and maintaining an industry to be proud of. We take great pride in contributing to the new marijuana economy while simultaneously supporting and shaping social justice reforms at the state, local, and federal level.
You work primarily in Oregon, which is an evolving landscape when it comes to marijuana policy and regulations. Can you briefly summarize the important regulatory frameworks that exist for business owners, and what changes are on the horizon for this market?
The Oregon Legislative Committee on Marijuana Legalization is considering many changes to the existing recreational program, including the potential removal of the residency requirements for recreational licenses. The committee has historically been hesitant to allow out-of-state majority ownership of Oregon marijuana businesses. However, many committee members have recently expressed that they now view residency requirements as a barrier for local business to raise much-needed capital.
While there is no guarantee that the current residency requirements will be eliminated, NEC has already begun to identify current and future market opportunities available to out-of-state business owners and investors.
Why did you join NCIA?
NEC enthusiastically joined NCIA as a member in 2013 and supports NCIA’s strategic lobbying at the federal level and especially their focus on our industry’s need for banking reform and 280E tax solutions. We strongly feel that the National Cannabis Industry Association is the tip of the spear when it comes to fighting for the federal reforms that affect all marijuana businesses on a daily basis.
Over the last two years, members from particular states have approached us here at NCIA with the idea of forming state-focused affiliates. While NCIA’s mission is dedicated to federal policy change and the support of a national industry that is coordinated, sustainable, and responsible, we’ve begun a journey with a few of these dedicated members looking to do the same at the state level. Many of our members are already familiar with our state affiliates in California and Illinois.
NCIA dedicates its policy work to issues at the federal level, which informs the playing field for all 50 states. However, individual state cannabis markets have their own unique needs and challenges. An NCIA state affiliate is tasked with pursuing the same priorities as NCIA’s federal mission – advocacy, education, and community – but with a zoomed-in focus on state legislation and regulations, city ordinances, and local networking and business development. The combination of NCIA and a state affiliate gives members a powerfully unified voice in influencing legislation that is fair towards our industry.
How does the state affiliate program work?
Each state affiliate is an independent entity from NCIA, which elects its own board of directors and has its own decision-making processes. The affiliates are non-profit organizations, and dues are collected from members to be used for state advocacy work.
Membership dues for the state affiliate are split between the state affiliate and NCIA, and members of the state affiliate are automatically added to the rosters of NCIA’s national membership, although many members still choose to maintain separate memberships with both the state affiliate and NCIA.
Our state affiliates currently exist in the two most populous states with active medical marijuana programs in place: California and Illinois. We checked in with the leadership of each affiliate to hear more about their progress and activities at the state level.
CCIA’s Executive Director and co-founder is Nate Bradley, who works closely with their official lobbyist, Amy Jenkins, to influence fair legislation and policies for the ever-evolving cannabis industry. CCIA’s membership currently sits at 132 members and growing.
“In 2015, CCIA hosted numerous well-attended membership networking and educational events throughout the state,” says Bradley. “We also added new staff to our ranks. In the fall we hired a Membership Coordinator. This in turn greatly increased our ability to reach out and provide services to our current members and build new membership at the same time.”
CCIA focuses on the state regulatory structure for California’s cannabis industry, working to influence regulations for the medical marijuana industry in the state legislature. CCIA has endorsed the Adult Use of Marijuana Act (AUMA), a full legalization state ballot initiative being proposed for 2016.
“More than any other legalization measures competing for the 2016 state ballot, AUMA represents the collective input of California’s lawful medical cannabis industry,” said CCIA President Sean Luse, who is also COO of the nation’s longest continually operating medical cannabis dispensary, Berkeley Patients Group.
So what are CCIA’s plans for the upcoming year?
“CCIA has a lot of big plans for 2016,” says Bradley. “Currently we are planning on bringing a new deputy director, increasing the amount of events we hold, developing our local government outreach program, and increasing the amount of membership committees we have.”
“We will also be heavily involved in any legislation clean-up, tracking the regulatory rule-writing process, and last but not least, making sure we are actively involved in influencing any cannabis ballot initiatives that may go before voters in November.”
CCIA’s 2015 victories are listed here, along with details of the requests that were successfully negotiated and included in the Medical Marijuana Regulation and Safety Act.
Kayvan Khalatbari, co-founder of Denver Relief, serves on the board of directors for ILCIA and offers insight into the progress of its formation over the last year. “With all the work the National Cannabis Industry Association is doing to progress policy, advocacy, and education on the federal level, it’s important to have that same influence on the state level,” says Khalatbari.
“We’re working hard to create a model that is in line with NCIA’s mission and tone, but also considerate of the cultural and political nuances present in Illinois. We’ve assembled a great group to form our initial board of directors, which includes cultivation and dispensary operators, attorneys, lobbyists and ancillary service providers… in a sense, most stakeholders in this new and exciting industry. We intend on bringing aboard a doctor and a patient representative as well in this new year to ensure all voices relevant to the success of this industry have a seat at the table.”
Kayvan Khalatbari, co-founder of Denver Relief and board member of ILCIA
“With our current 25 members we have some room to grow, but have no doubt that will happen as we become more active and visible in 2016. Between assisting in the development and implementation of the NCIA local Cannabis Caucuses here in Chicago, assembling our own quarterly educational symposiums, networking events, and a lobby day in April, as well as collaborating with other groups to add qualifying conditions in the medical cannabis program, we’re poised to make a big push in having a positive and responsible influence as this industry gets off the ground here.”
“The bridge to our national partners at NCIA can only benefit that push forward and help ensure that cannabis businesses in Illinois are represented at all levels of government for years to come.”
Looking to get involved in one of our state affiliates? Visit their websites:
by Michelle Rutter, Government Relations Coordinator
This year is arguably the most crucial yet for the burgeoning cannabis industry, especially as it relates to policy. Although NCIA primarily advocates for cannabis reform at the federal level, what happens in each individual state is vital to the stances Members of Congress take on our issues.
Members of Congress care deeply about issues that directly affect their specific state or district. It’s imperative that more states enact cannabis reform legislation so that more Members have a vested interest in protecting their constituents. While cannabis reform is sweeping the nation at an almost unprecedented rate, it takes time for politicians in Washington, D.C., to catch up with public opinion back home. If all of the federal lawmakers representing just the 15 states mentioned below were to vote positively on pro-cannabis legislation, it would add up to more than 180 Representatives and nearly 30 Senators.
Take a look below and see what’s coming up next in 2016. Remember that by becoming a member of NCIA, you are adding your voice to the coordinated and unified campaign at the federal level to allow cannabis businesses access to financial services, fix tax section 280E, and ultimately end federal cannabis prohibition.
The United States of Cannabis
Arizona activists remain ahead of schedule and have nearly gathered the 150,000 signatures needed to put the state’s Campaign to Regulate Marijuana Like Alcohol initiative on the November 2016 ballot. (The campaign ultimately aims to collect 230,000 in order to insure against signature drop-off.) It’s estimated that Arizona’s adult-use market could be worth up to $480 million.
With a multi-billion-dollar cannabis industry in California alone, passing an adult-use legalization initiative in the state is vital to ending federal prohibition. The most prominent full retail initiative gathering signatures for the November 2016 election is the Adult Use of Marijuana Act, which is backed by billionaire Sean Parker and the Marijuana Policy Project.
Legalize Maine and the Marijuana Policy Project have joined forces to legalize adult-use cannabis in 2016. Legalize Maine has already collected 80,000 signatures. Only 61,000 signatures are necessary to place the measure on a statewide ballot, but the organization’s goal is 95,000, to insure against drop-off. The deadline to submit signatures is February 1st.
Last August, a pair of cannabis advocacy groups separately filed paperwork to get adult-use legalization on the 2016 ballot in Massachusetts. The state recently confirmed that a measure to legalize recreational cannabis next year has enough valid signatures to force the legislature to consider the measure. If the legislature decides to pass, then the campaign will have to collect another 10,792 signatures to formally make the November ballot.
There’s no question that adult-use legalization will be on the ballot this year in Nevada. Initiative Petition 1, which would tax and regulate marijuana similarly to alcohol, has been certified for the 2016 ballot. Backers had previously collected nearly 200,000 signatures to either force legislators to enact their initiative or put it on the ballot. When state lawmakers abstained from voting on the issue, the measure was automatically forwarded to this year’s ballot for a popular vote.
In Florida, the group United for Care received clearance from the state Supreme Court for a 2016 ballot measure that would legalize medical marijuana. The group nearly succeeded in legalizing medical marijuana in 2014, garnering 58% of the vote but falling barely short of the state’s constitutionally mandated 60% margin needed to pass,
The nation’s capital continues to debate cannabis. In December’s federal budget bill, the taxation and regulation of marijuana in Washington, D.C., was blocked by Congress again, though possessing and gifting cannabis remains legal in the city.
This month, Hawaii will begin accepting applications for medical cannabis businesses. The bill signed into law last summer opens the door for up to 16 dispensaries on the islands.
It was recently announced that Illinois saw approximately $1.7 million in medical cannabis sales during November and December of 2015. There are already petitions being circulated in the state that would expand the law’s qualifying conditions.
Maryland will award cannabis cultivation, processing, and dispensary licenses this summer. Industry advocates were pleased with the amount of interest the state’s program garnered: more than 1,000 applications were submitted.
Officials in Michigan have approved language for three different adult-use cannabis legalization initiatives for the 2016 ballot. In order to have the best chance of passing, it’s important for these groups to coalesce behind one initiative.
At the end of 2015, New Hampshire began issuing medical marijuana cards to qualifying patients. It’s expected that the state will open medical dispensaries in 2016.
After a long and arduous journey, New York’s medical cannabis program became operational this month. The cannabis industry expects the program and the law’s qualifying conditions to expand this year.
In the first week of 2016, Oregon began accepting adult-use cannabis business license applications. The state has no limit on how many licenses they will decide to award.
Vermont may become the first state to legalize adult-use cannabis through the legislative process in 2016. The proposed bill would allow for up to 86 storefronts and five different business license types.
Bonus: Election 2016 – Yes, We Canna
As we all know, a new president will be elected this November, and with that a new administration will assume power next January. It is very crucial that Congress pass more pro-cannabis legislation before then.
It’s probable that Attorney General Loretta Lynch will be replaced in 2016 or early 2017. This is important because it is the Department of Justice that enforces and prosecutes federal marijuana laws.
Another possibility for 2016 is that the acting head of the Drug Enforcement Administration, Chuck Rosenberg, could be replaced as well. Rosenberg is notorious for his gaffe last year when he called marijuana “probably” less dangerous than heroin.
On New Year’s Eve, officials from the Substance Abuse and Mental Health Services Administration posted a notice on the Federal Register that calls for a report “presenting the state of the science on substance use, addiction and health” to be released in 2016. Industry advocates are hopeful that this report could be the first sign of re- or de-scheduling cannabis from the Controlled Substances Act.
During 2016, NCIA will continue working with D.C.-based public affairs firms Heather Podesta + Partners, and Jochum Shore & Trossevin PC to magnify our efforts to address the industry’s top federal priorities: access to basic banking services and fair federal taxation.
In addition to NCIA’s lobbying and advocacy efforts, NCIA exists to connect and educate our members on all facets of the cannabis industry. Our industry supports tens of thousands of jobs, tens of millions in tax revenue, and billions in economic activity in the United States.Our core mission is to ensure that our members are treated like businesses in any other American industry. Join NCIA today to get involved and be a part of the cannabis revolution!
Video Newsletter: The Fourth Corner Credit Union Ruling and What You Can Do
We’re back with NCIA’s first video newsletter of 2016!
Earlier this month, a federal judge dismissed a lawsuit filed against the Federal Reserve by the Fourth Corner Credit Union, which had planned to provide banking services to the cannabis industry, but was denied a master account by the Fed.
Watch this month’s video to find out how the ruling affects NCIA’s work to pass a banking solution in Congress and how you can help by pressuring Members of Congress to pass the Marijuana Business Access to Banking Act.
Want your voice heard in our nation’s capitol on issues affecting the cannabis industry? Join us for our 6th Annual NCIA Member Lobby Days in Washington, D.C., on May 12 & 13, 2016.
Announcing NCIA’s January – June 2016 Events Calendar
Do you have questions regarding any upcoming events in your area or others across the country? Reach out to events@thecannabisindustry.org any time with your questions, comments, or concerns.
Interested in sponsoring one or a series of events in a particular region throughout the year in order to gain valuable exposure for your company to our nationwide network of established business owners? Please contact Brian Gilbert at brian@thecannabisindustry.org for more information on series rates and associated discounts for packages.
Interested in speaking at the upcoming Cannabis Business Summit? Please contact brooke@thecannabisindustry.org for more information on remaining opportunities.
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Regulatory Compliance and Consulting
