Unlocking Social Equity in Legal Cannabis Delivery | 9.21.23 | NCIA #IndustryEssentials Webinar

 

Welcome to the National Cannabis Industry Association’s (NCIA) latest webinar recording, “Committee Insights: Balancing the Scales – Social Equity in Legal Cannabis Delivery.” NCIA’s #IndustryEssentials webinar series is your gateway to timely, engaging, and essential education in the dynamic world of cannabis. In this insightful session we partnered with NCIA’s Diversity, Equity & Inclusion Committee (one of our 14 member-led committees) to explore the pressing need to address historical inequities in the legal cannabis industry.

As the cannabis industry experiences exponential growth, it’s crucial to provide a platform for individuals adversely affected by past cannabis laws. Our esteemed panel of experts shed light on the importance of social equity in cannabis delivery regulations and offered actionable solutions for a more inclusive industry.

Learning Objectives:

• Understand the historical context of cannabis-related offenses and their disproportionate impacts.

• Recognize the crucial importance of social equity provisions in cannabis regulations.

• Identify best practices for implementing social equity in cannabis delivery.

• Engage stakeholders in constructive dialogues for industry-wide change.

Our target audience for this webinar included cannabis industry professionals and regulators, entrepreneurs interested in cannabis delivery services, social justice advocates, and policymakers, as well as legal professionals.

Whether you’re an industry insider or a passionate advocate, this webinar recording is a valuable resource to deepen your understanding of social equity in the cannabis industry. Join us as we work towards creating a more equitable and inclusive future.

Panelists:

Mark Slaugh
iComply

Michael Diaz-Riviera
Better Days Delivery Service

Bryce Fluellen
Euphorium

Tee Tee Brown
Euphorium

Moderator:

Kenya Alexander
Green to Green Solutions

Committee Insights: Balancing the Scales – Social Equity in Legal Cannabis Delivery

NCIA’s #IndustryEssentials webinar series is our premier digital educational platform featuring a variety of interactive programs allowing us to provide you timely, engaging and essential education when you need it most. The NCIA Committee Insights series showcases content produced in partnership with one of our 15 member-led committees.

As the legal cannabis industry grows exponentially, there remains a pressing need to address historical inequities and provide a platform for individuals adversely affected by past cannabis laws. This webinar aims to shed light on theimportance of social equity in cannabis delivery regulations and offer actionable solutions for a more inclusive industry.

Learning Objectives:

• Understand the historical context of cannabis-related offenses and their disproportionate impacts.
• Recognize the importance of social equity provisions in cannabis regulations.
• Identify best practices for implementing social equity in cannabis delivery.
• Engage stakeholders in constructive dialogues for industry-wide change.

Target Audience:

• Cannabis industry professionals and regulators.
• Entrepreneurs interested in cannabis delivery services.
• Social justice advocates and policymakers.
• Legal professionals.

Panelists:

Mark Slaugh
iComply

Michael Diaz-Riviera
Better Days Delivery Service

Bryce Fluellen
Euphorium

Tee Tee Brown
Euphorium

Moderator:

Kenya Alexander
Green to Green Solutions

America in Miniature Goes Green: Maryland’s Journey to Adult-Use Cannabis | 9.7.23 | Policy Matters

 

Introducing “Policy Matters” – an insightful new #IndustryEssentials webinar series dedicated to unraveling the intricate world of regulatory and policy dynamics within the cannabis industry. As the cannabis landscape continues to evolve, staying informed about the latest regulations and policies impacting Main Street cannabis operators is crucial for success. Join us for a series of engaging discussions where regional regulators, industry leaders, legal experts, and policy influencers come together with NCIA leadership to shed light on the most pressing issues facing cannabis professionals.

Are you curious about the intricacies of launching an adult-use cannabis market in record time? In the debut episode of our new Policy Matters webinar series we delved into the strategic aspects of designing a thriving cannabis market while meeting regulatory standards. In this exclusive session, NCIA Policy Co-Chairs Khurshid Khoja and Michael Cooper were joined by Will Tilburg, Director of the Maryland Cannabis Administration and President of the Cannabis Regulators Association, to explore invaluable insights into the objectives that drive cannabis regulators and the pitfalls they strive to avoid. Discover the pressing enforcement challenges that are top of mind for cannabis regulators in 2023 and gain a clear understanding of the evolving landscape.

Don’t miss this opportunity to gain an understanding of how policy matters in the fast-paced cannabis sector. Stay informed, stay ahead, and be part of the conversation that’s shaping the future of cannabis policy. Tune in today and empower yourself with the knowledge to thrive in this dynamic industry.

Panelists:

Will Tilburg
Director | Maryland Cannabis Administration
President | Cannabis Regulators Association

Khurshid Khoja
Principal | Greenbridge Corporate Counsel

Michael Cooper
Managing Member | MadisonJay Solutions


Session Chapters & Discussion Outline

00:12Session Intro

02:29Moderator & Panel Intro

03:40Launching an Adult Use Market in 2023 | Were there lessons from the existing medical market and others around the nation that you identified as important, both success stories and pitfalls to avoid?

07:23Launching an Adult Use Market in 2023 | What allowed you to move so efficiently and what lessons would you highlight for industry and regulators in new markets rolling-out in the future?

12:48 Launching an Adult Use Market in 2023 | What are some priorities you have for the months ahead?

16:55Launching an Adult Use Market in 2023 | What advice would you give to future regulators on building relationships within the executive branch to prioritize these issues?

22:20Social Equity | Can you talk about reserving the first round of adult-use cannabis licenses exclusively for social equity applicants and other recent milestones or developments working with the Office of Social Equity?

28:56Social Equity | How has Maryland worked to make its medical cannabis industry more equitable and ensure these goals aren’t undercut as they have been with similar licensing preferences in other states?

34:04Enforcement | How did the state set up its enforcement plan? How do you strike a balance in a new market between a complete absence of enforcement and protecting public health?

37:34Enforcement | What are some key enforcement priorities for you looking ahead?

41:40CANNRA | Can you talk about the Cannabis Regulators Association (CANNRA) purpose, membership, and goals?

44:39CANNRA | What are the priorities or goals for your tenure as CANNRA president?

47:20Federal Reform & Regulation | What is Maryland doing to address the hemp-derived cannabinoids issue as it relates to protecting public health and unfair competition with adult-use cannabis licensees?

52:10Federal Reform & Regulation | As a state regulator, how did you receive the recent HHS recommendation for rescheduling of cannabis to Schedule III?

54:56 Federal Reform & Regulation | Commons Concerns Amongst CANNRA Membership Surrounding Rescheduling Recommendations

56:34Federal Reform & Regulation | What is the optimal division of labor between state and federal government if cannabis is completely descheduled in the future?

57:57Final Thoughts | Will Tilburg

59:40Final Thoughts | Khurshid Khoja & Michael Cooper

01:01:00Session Outro & Upcoming NCIA Activities

01:06:19Member Appreciation Credit Sequence

Committee Blog: Navigating the 2023 Cannabis Harvest Season – Balancing Labor Costs, Worker Safety, and Automation

As we enter the Fall cannabis harvest season of 2023, several dynamics impacting human resources in the cannabis industry have shifted considerably. Between escalating labor costs and the imperatives of ensuring safer working conditions, the landscape for cannabis industry employers isn’t what it used to be.

Here are three recommendations to help you navigate workflows this harvest season:

1. Proactive Planning Amidst Rising Labor Costs:

Labor costs in the cannabis industry have seen a sharp surge in recent months. Where we saw hourly rates for harvest workers in years past at $12-$20/hour, this range is now closer to $14-$25/hour, depending on the market. This uptick isn’t just a reflection of rising expectations among industry employers, but also a clearer sense of the safety risks involved, what experienced cannabis harvest workers are willing to work for, and the number of such workers who have left the industry entirely in recent months. For cannabis companies, this necessitates early planning. Human resources departments need to remain agile to adapt to these changes in the labor market.

To address this, a multi-pronged strategy is best. If you’re still finalizing your harvest approach, consider a blend of hiring seasonal talent while also investing in some automation. By leveraging the unique strengths of both seasonal and full-time workers, along with automation, you can tap into hands-on expertise, while enjoying the benefits of flexibility and cost-effectiveness.

2. Prioritizing Worker Safety:

The increasing global temperatures, a distressing trend for many cultivators, has implications for outdoor and greenhouse workers. HR professionals need to be proactive in revising Safety protocols to protect workers from the adverse effects of heat. Regular breaks, shaded areas, hydration stations, and training on recognizing heat-related illnesses are no longer optional. In certain areas, you may want to consider having your crew come in earlier than usual, before the weather heats up, as long as you have adequate lighting in place so the team can work safely.

If you operate in remote locations or places farther from urban centers, it becomes even more crucial to ensure nearby amenities and facilities are optimized for the warmer climate. This includes considering air-conditioned accommodations, cool showers, or providing cooling stations on-site. Keep a list of essential nearby services, and ensure they cater to the needs of workers battling higher temperatures.

In light of respiratory concerns, especially in indoor processing settings, invest in premium Personal Protective Equipment (PPE) for tasks like handling kief, resin, and pre-rolls. This PPE can also be used by workers outdoors when there are some air quality concerns due to fire season. It is not safe for workers to be out when air quality is poor. Check with your Worker’s Compensation provider to see what the threshold is for your policy.

If you’re looking for Work Site Safety or OSHA guidance, please reach out to NCIA’s HR Committee for recommendations.

3. Integrating Automation with the Human Touch:

2023 is undeniably a pivotal year for integrating automation in the harvest process. Advancements in technology offer tools that can help streamline multiple stages of the harvest. While there are certain upfront costs involved, there are also long-term benefits to be had in terms of overall profitability and efficiency. While much of the available machinery has a way to go before being as accurate as an experienced Harvesting Tech or Trimmer, especially for growers in remote areas, where there isn’t a large pool of talent, leaning more on automation could make the difference between harvesting your cannabis at its peak, or not.

You can also look to our related NCIA blog post from 2021 for additional suggestions to help you prepare for the Fall harvest. Navigating the harvest this season will require forward-thinking, investment in a combination of seasonal workers and technology, along with a renewed commitment to worker well-being. As challenges continue to mount in our industry, the companies that adapt and prioritize both efficiency and worker safety will undoubtedly reap the greatest rewards.

Committee Insights: Cracking the Code – Unraveling the Challenge of Coverage for Novel Cannabinoids

NCIA’s #IndustryEssentials webinar series is our premier digital educational series featuring a variety of interactive programs allowing us to provide you timely, engaging and essential education when you need it most.

We’ve seen so much interest and had so much fun exploring these topics that we couldn’t wrap it up just quite yet! Next month, NCIA’s Risk Management & Insurance Committee explores why insurance for novel cannabinoids can be such a challenging code to crack…

In this session you’ll learn from our panel of leading risk management, insurance and compliance experts how to navigate liability and legislative loopholes so you’ll better understand exposure alongside a patchwork of federal and state requirements.

You’ll leave this webinar with a better understanding of how novel cannabinoids are defined in various insurance policies, why they’re difficult to insure and the science behind this novel cannabinoid coverage conundrum.

Join us for this insightful webinar as we strive to unravel the complexities of insuring novel cannabinoids and equip you with the knowledge needed to make informed decisions regarding your insurance coverage. Reserve your spot today and crack the code to safeguard your products, operations and workforce!

Learning Objectives

• Defining Novel Cannabinoids
• Challenges in Insuring Novel Cannabinoids
• Navigating Liability, Loopholes, & Legislation
• Tips for Effective Policy Interpretation

Panelists:

C Cimone Casson
CEO
Cannas Capital

Summer Jenkins
Executive Director
Cannabis Insurance Wholesalers

Dr. Brenda Wells
Distinguished Professor / Director of Risk Management & Insurance Program
East Carolina University

Merril Gilbert
CEO
TraceTrust

Adam Patt
President
iCann Insure, LLC

Committee Insights | 7.26.23 | Concepts for Regulatory Consideration – Shifting the Conversation from “Cannabis vs. Hemp” to “The Cannabinoids”

NCIA’s #IndustryEssentials webinar series is our premier digital educational platform featuring a variety of interactive programs allowing us to provide you timely, engaging and essential education when you need it most.

In this edition of our NCIA Committee Insights series, originally aired on July 26, we were joined by leading cannabinoid product manufacturers and Cannabis Regulators Association (representing cannabis and hemp regulators across more than 40 states and U.S. territories) to examine different approaches to regulating consumer products containing cannabinoids across the US and discuss the potential for harmonized regulations in the future.

Regulating the cannabinoids is difficult enough, but throw in the challenges associated with cannabinoids derived from marijuana or hemp and the challenges can get even more complicated. Not to mention the debate between intoxicating and non-intoxicating cannabinoids and how to address the risks to public health and safety from these different types of cannabinoids. Then you have the proverbial “cherry on top” with how to address cannabinoids, both naturally occurring and novel, being produced by genetically modified organisms and scientists in the lab. There has got to be a logical way to solve this problem.

One potential solution is shifting the conversation away from cannabis vs. hemp and toward the constituents of concern, the cannabinoids. By regulating the cannabinoids, we can focus the debate on what matters, how to regulate cannabinoid ingredients in a way that is proportional to the level of risk to public health and safety. This ensures we have both a functional and vibrant cannabinoid products market and the means to protect consumers.

Learning Objectives:

• Learn about the similarities and differences between marijuana and hemp regulations for consumer products containing cannabinoids
• Find out what a consumer product containing cannabinoids is and how this concept can be used to promote more common sense regulations
• Listen to new perspectives on the challenges facing the cannabinoid-containing consumer products space and how to more efficiently regulate this marketplace

Curious about the complex world of cannabinoid regulation? Sit back and settle in for an insightful webinar where we delve into the challenges (and solutions!) surrounding cannabinoids derived from marijuana and hemp.

Panelists:

Gillian Schauer
Executive Director
Cannabis Regulators Association

James Granger
Chief Political Officer
Cliintel Capital Group

Keith Butler
CEO
OP Innovates / Naturia+

Cassin Coleman
Founder
Cassin Consulting

Chris Hope
Founder and Consultant
Sequoia Management Group

Darwin Millard (Moderator)
Chief Scientific Officer – Canada
Final Bell

This is fifth and final program in a multi-part series of #IndustryEssentials webinars. You can watch Parts I-IV at the links below.

Defining the Conversation: Minor, Novel & Synthetic Cannabinoids (Part I): https://bit.ly/3D2LReB

Meet the Minors (Part II): https://bit.ly/3qUD8Ip

From Lab to Label: Safeguarding Consumers in the Cannabinoid Product Landscape (Part III): https://bit.ly/3Xc9Lx6

Know Your Hazards – Occupational Health and Safety Considerations in Cannabinoid Ingredient Manufacturing (Part IV): https://bit.ly/3rEUeKP

Committee Insights | 7.13.23 | Know Your Hazards – Occupational Health and Safety Considerations in Cannabinoid Ingredient Manufacturing

NCIA’s #IndustryEssentials webinar series is our premier digital educational platform featuring a variety of interactive programs allowing us to provide you timely, engaging and essential education when you need it most.

In this edition of our NCIA Committee Insights series, originally aired on July 13, we were joined by members of NCIA’s Cannabis Manufacturing, Scientific Advisory and Hemp Committees for an in-depth discussion highlighting the occupational health and safety considerations to make during the manufacture of cannabinoids and provide recommendations for mitigating risk.

There is no mistaking that manufacturing cannabinoids is here to stay. It is more and more prevalent to see historically plant/naturally derived bulk ingredients being manufactured in a controlled environment in the lab or through innovative processes like precision fermentation. It is likely that bulk ingredient manufacturing of cannabinoids will go this route too.

For cannabinoids like HHC, that do not exist naturally in the plant or in high enough quantities to be commercially viable for extraction, it is most certainly the case that manufacture of these compounds will occur in the lab. To produce these compounds safely, we can luckily look toward existing regulations and occupational health and safety guidelines for producing novel ingredients for use in foods and non-foods.

Learning Objectives:

• Recognizing common occupational safety hazards associated with manufacturing cannabinoids and recommendation to mitigate these hazards

• Learning the different occupational safety considerations between isolation and purification of naturally occurring cannabinoids and the manufacture (synthesis) of cannabinoids in the lab

• Understanding the special safety considerations that processes like hydrogenation and others have and why these are critical to mitigating liability for your business

Panelists:

Jacob Enslein
Consultant
AJ Cannabis Consulting

Rhiannon Woo
Co-Founder & CSO
TraceTrust

Tenay Woodard
Director of Safety & Security
KIVA Brands, Inc.

Tucker Holland
Co-founder, CFO and Processing Director
Entourage Cannabis

Keith Butler
CEO
OP Innovates / Naturia+™

This is the fourth of five in a multi-part series of #IndustryEssentials webinars. You can watch Parts I-V at the links below.

Defining the Conversation: Minor, Novel & Synthetic Cannabinoids (Part I): https://bit.ly/3D2LReB

Meet the Minors (Part II): https://bit.ly/3qUD8Ip

From Lab to Label: Safeguarding Consumers in the Cannabinoid Product Landscape (Part III)https://bit.ly/3Xc9Lx6

Know Your Hazards – Occupational Health and Safety Considerations in Cannabinoid Ingredient Manufacturing (Part IV)https://bit.ly/3rEUeKP

Concepts for Regulatory Consideration – Shifting the Conversation from “Cannabis vs. Hemp” to “The Cannabinoids” (Part V): https://bit.ly/3P3r5AW

Member Blog: The Importance of Storing Cannabis Properly

Picture of cannabis in a jar

Cannabis is affected by humidity.

Yes, cannabis is definitely affected by humidity. Cannabis plants are sensitive to changes in temperature and humidity levels, both during cultivation and after harvesting.

During cultivation, cannabis plants need a specific range of temperature and humidity levels to thrive. Too much humidity can lead to the growth of mold and mildew, while too little humidity can cause the plants to dry out and become brittle.

After harvesting, cannabis buds need to be dried and cured to preserve their quality and potency. During this process, it is important to control the humidity levels to ensure that the buds dry slowly and evenly. If the humidity levels are too high, the buds can become moldy, while if they are too low, the buds can dry out too quickly and lose their potency.

In addition, the humidity level can also affect the storage of cannabis. If the humidity levels are too high, it can cause the buds to become moldy, while if they are too low, it can cause the buds to become brittle and lose their flavor and potency.

Therefore, it is important to control the humidity levels during the cultivation, drying, curing, and storage of cannabis to ensure that the buds are of high quality, potent, and safe for consumption.

How can dry cannabis lose potency?

When cannabis is dried and cured, it naturally loses moisture. However, if the cannabis becomes too dry, it can begin to lose potency.

This is because the active compounds in cannabis, such as THC and CBD, are stored in the trichomes on the surface of the buds. When the buds become too dry, the trichomes can become brittle and break off, causing the loss of these valuable compounds.

In addition, when cannabis becomes too dry, it can also affect the flavor and aroma of the buds. The terpenes, which are responsible for the characteristic smells and tastes of different strains, can degrade over time if the buds are too dry.

Therefore, it is important to store cannabis at the correct humidity levels to ensure that it stays fresh and potent. The ideal humidity range for storing cannabis is between 59% and 63% relative humidity. If the buds become too dry, you can try to rehydrate them by adding a humidifying device, such as a moisture pack, to the storage container. However, it is important to be careful not to add too much moisture, as this can cause the buds to become moldy or develop other quality issues.

Cannabis potency versus humidity

The potency of cannabis can be affected by humidity levels. When cannabis is stored at a high humidity level, it can cause the breakdown of THC and other cannabinoids, decreasing potency. On the other hand, if cannabis is stored at a low humidity level, it can cause the buds to become dry and brittle, which can also lead to a decrease in potency.

Therefore, it is important to store cannabis in a controlled environment with the appropriate humidity level. This can be achieved using specialized storage containers, such as airtight jars or humidors, designed to maintain a consistent humidity level. It is also important to monitor the humidity levels regularly and adjust as necessary to ensure that the cannabis stays fresh and potent.

Cannabis taste versus low humidity

When the terpenes are lost, the flavor of the cannabis can become harsh, bitter, or stale. This can make the smoking experience less enjoyable and may also indicate a decrease in potency.

If the buds have become too dry, it is possible to rehydrate them by adding a humidifying device, such as a moisture pack, to the storage container. However, it is important to be careful not to add too much moisture, as this can cause the buds to become moldy or develop other quality issues.

Committee Insights | From Lab to Label: Safeguarding Consumers in the Cannabinoid Product Landscape

NCIA’s #IndustryEssentials webinar series is our premier digital educational platform featuring a variety of interactive programs allowing us to provide you timely, engaging and essential education when you need it most.

In this edition of our NCIA Committee Insights series, originally aired on June 13, we were joined by members of NCIA’s Cannabis Manufacturing, Scientific Advisory and Hemp Committees for an in-depth discussion of the current cannabinoid testing & labeling landscape alongside complications compounding consumer safety and product manufacturing concerns.

Consumer products that contain cannabinoids are a popular new consumer product category sweeping the United States. Whether these consumer products are manufactured using cannabinoids derived from cannabis or hemp, consumers deserve to know what they are consuming.

Truth in labeling is critical to providing cannabinoid content information to a consumer so they can make an informed purchase decision and in ensuring consumer safety. However, with so many different label content requirements from state to state for consumer products containing cannabinoids, this lack of consistency can lead to potential risks to the end consumer.

This is especially true when the majority of cannabinoid product manufacturers are dependent on third-party data during product manufacturing and compliance testing. This interdependence between testing laboratories and product manufacturers makes it all the more important that label content requirements are both achievable from a manufacturing standpoint without being overly burdensome for regulators to verify and do not endanger public health and safety.

In this webinar, our panelists explored about the current state of America’s somewhat-monitored cannabinoid-product marketplace, and examined several of the issues related to cannabinoid quantification, cannabinoid content declarations, and label claim verification and how these relate to consumer safety.

Learning Objectives:

• Learn about the potential risks associated with untested, unlabeled products both for the business owner and as a consumer

• Review the current landscape of cannabinoid testing requirements, how they vary state to state and the role 3rd party labs play in the picture

• Understand the nuances with label content compliance and implications on label claims

• Explore data integrity issues preventing consumers from making informed decisions

• Share best practices for what the the industry should do, what consumers can do and what regulators need to do

Panelists:

Paul Coble
Technology Attorney
Harris Bricken Sliwoski LLP

Matthew Johnson
Vice President, Risk Services
QuadScore Insurance Services

Rhiannon Woo
Co-Founder & CSO
TraceTrust

Keith Butler
CEO
OP Innovates / Naturia+™

Darwin Millard
Owner/Founder /// Subcommittee Vice-chair
TSOC LLC /// ASTM International D37.04 on Cannabis Processing and Handling

This is the third of five in a multi-part series of #IndustryEssentials webinars. You can watch Parts I-V at the links below.

Defining the Conversation: Minor, Novel & Synthetic Cannabinoids (Part I): https://bit.ly/3D2LReB

Meet the Minors (Part II): https://bit.ly/3qUD8Ip

From Lab to Label: Safeguarding Consumers in the Cannabinoid Product Landscape (Part III)https://bit.ly/3Xc9Lx6

Know Your Hazards – Occupational Health and Safety Considerations in Cannabinoid Ingredient Manufacturing (Part IV)https://bit.ly/3rEUeKP

Concepts for Regulatory Consideration – Shifting the Conversation from “Cannabis vs. Hemp” to “The Cannabinoids” (Part V): https://bit.ly/3P3r5AW

Committee Insights | Meet the Minors (Novel, Minor, Synthetic Cannabinoids – Part II)

In this edition of our NCIA Committee Insights series, originally aired on May 11, 2023, we were joined by members of NCIA’s Cannabis Manufacturing, Scientific Advisory and Hemp Committees for an in-depth discussion of the most talked about minor, novel, and synthetic cannabinoids.

What scientific publications exist for each compound? What do we know about each molecule’s physiological, psychoactive, and therapeutic effects?

You’ll find out during this informative session featuring leading chemical experts, manufacturers and product development specialists. Along with audience members they explored these compounds from various perspectives to examine their implications for consumers, medical practitioners, patients, producers and regulators.

Learning Objectives:

• Molecular Structures and Identification of novel, minor, and synthetic compounds
• Published Physiological and Psychoactive effects of these compounds
• Perceived therapeutic effects
• Opportunity to ask about other new compounds not in presentation.

Panelists:

Cassin Coleman
Founder
Cassin Consulting

James Granger
Chief Political Officer
Clintel Capital Group

John Murray
President
Sustainable Innovations

Scott Seeley
Patent Attorney & Intellectual Property Lawyer
Eastgate IP

This is the second of five in a multi-part series of #IndustryEssentials webinars. You can watch Parts I-V at the links below.

Defining the Conversation: Minor, Novel & Synthetic Cannabinoids (Part I): https://bit.ly/3D2LReB

Meet the Minors (Part II): https://bit.ly/3qUD8Ip

From Lab to Label: Safeguarding Consumers in the Cannabinoid Product Landscape (Part III)https://bit.ly/3Xc9Lx6

Know Your Hazards – Occupational Health and Safety Considerations in Cannabinoid Ingredient Manufacturing (Part IV)https://bit.ly/3rEUeKP

Concepts for Regulatory Consideration – Shifting the Conversation from “Cannabis vs. Hemp” to “The Cannabinoids” (Part V): https://bit.ly/3P3r5AW

Committee Insights: Meet the Minors (Novel, Minor, Synthetic Cannabinoids – Part II)

NCIA’s #IndustryEssentials webinar series is our premier digital educational series featuring a variety of interactive programs allowing us to provide you timely, engaging and essential education when you need it most. The NCIA Committee Insights series showcases content produced in partnership with one of our 15 member-led committees.

Our multi-part series on Novel, Minor, and Synthetic Cannabinoids continues! Join members of NCIA’s Cannabis Manufacturing, Scientific Advisory and Hemp Committees for an in-depth discussion of the most talked about minor, novel, and synthetic cannabinoids.

What scientific publications exist for each compound? What do we know about each molecule’s physiological, psychoactive, and therapeutic effects?

You’ll find out LIVE from leading chemical experts, manufacturers and product development specialists as they explore these compounds from various perspectives to examine their implications for consumers, medical practitioners, patients, producers and regulators.

Learning Objectives

• Molecular Structures and Identification of novel, minor, and synthetic compounds
• Published Physiological and Psychoactive effects of these compounds
• Perceived therapeutic effects
• Opportunity to ask about other new compounds not in presentation.

Panelists

Cassin Coleman
Founder
Cassin Consulting

James Granger
Chief Political Officer
Clintel Capital Group

John Murray
President
Sustainable Innovations

Scott Seeley
Patent Attorney & Intellectual Property Lawyer
Eastgate IP

Committee Insights | 12.14.22 | Defining the Conversation: Minor, Novel & Synthetic Cannabinoids

NCIA’s #IndustryEssentials webinar series is our premier digital educational series featuring a variety of interactive programs allowing us to provide you timely, engaging and essential education when you need it most.

In this edition of our NCIA Committee Insights series, originally aired on December 14 and produced in collaboration by NCIA’s Cannabis Manufacturing Committee, Scientific Advisory Committee and Hemp Committee we introduced and framed the myriad regulatory, scientific, linguistic, and ethical issues that come with the rise of minor, novel, and synthetic cannabinoids.

Learning Objectives:
• Understand the role of minor, novel, and synthetic cannabinoids in the cannabis industry and the unique issues relating to their current status.

At the conclusion of the discussion our panel hosted a lengthy moderated Q&A session so our network could get all their burning questions answered by these leading manufacturing, biochemical, and legal professionals from the hemp and cannabis industries.

Panelists:
Scott Seeley
Biochemist and Patent/TM Attorney @Eastgate IP

Cassin Coleman
Founder
Cassin Consulting

Keith Butler
CEO
OP Innovates / Hemp Mellow

Paul Coble
Intellectual Property Attorney
Harris Bricken Sliwoski LLP

There is more to cannabis than THC and CBD. As our understanding (and commercialization) of cannabis evolves, new compounds like CBG, delta-8-THC, THCv, and others are coming onto the scene. These various “minor” cannabinoids, however, bring with them a host of new issues.

Over the next few months this collaboration will continue to explore these issues with various subjects ranging from basic and advanced overviews of these molecules, regulatory recommendations, risk management and compliance concerns all the way to consumer and manufacturer safety. Stay up to date and be the first to know when additional follow-up sessions are scheduled by signing up via the form below.

Keep Me Updated: http://bit.ly/3Y5AfAp

This is the first of five in a multi-part series of #IndustryEssentials webinars. You can watch Parts I-V at the links below.

Defining the Conversation: Minor, Novel & Synthetic Cannabinoids (Part I): https://bit.ly/3D2LReB

Meet the Minors (Part II): https://bit.ly/3qUD8Ip

From Lab to Label: Safeguarding Consumers in the Cannabinoid Product Landscape (Part III)https://bit.ly/3Xc9Lx6

Know Your Hazards – Occupational Health and Safety Considerations in Cannabinoid Ingredient Manufacturing (Part IV)https://bit.ly/3rEUeKP

Concepts for Regulatory Consideration – Shifting the Conversation from “Cannabis vs. Hemp” to “The Cannabinoids” (Part V): https://bit.ly/3P3r5AW

Committee Insights | 11.29 | The Pathway to Greater Equity in New York’s Adult Use Cannabis Market

In this edition of our NCIA Committee Insights series, originally aired on November 29 and produced NCIA’s Diversity, Equity & Inclusion Committee, we held a lively discussion to present the official recommendations jointly submitted to the New York Office of Cannabis Management in Fall 2022.

Since early 2022, NCIA and our DEI Committee has been conducting an ongoing roundtable discussion consisting of multiple national and New York based cannabis social equity and industry organizations to assess and provide feedback regarding rules and regulations. We also covered the PIES Program, which is an innovative program that draws on the lessons learned from other states to create a streamlined solution with true DEI front and center.We also covered the PIES Program, which is an innovative program that draws on the lessons learned from other states to create a streamlined solution with true DEI front and center.

Learning Objectives:
• Learn about NCIA’s New York Social Equity Roundtable, a collaboration of multiple National and New York based cannabis social equity and industry organizations

• Gain insights into how New York is rolling out its Adult Use Cannabis market with regards to Social Equity and Justice Involved individuals

• Understand how our recommendations would impact New York’s market if implemented, and Identify opportunities for organizations and the state agency to work collaboratively

Panelists:
Frederika McClary Easley
Director of Strategic Initiatives
The People’s Ecosystem

Scheril Murray Powell, Esq.
Chief Operating Officer
The JUSTÜS Foundation

Maur Stringer
Founder, Owner, CEO
The Magi Tree LLC

Cynthia L. Mompoint
Black and Brown Economic Power in Cannabis

Adrian Adams, Ed.D.
CEO
Ontogen Botanicals

Mike Lomuto (Moderator)
Diversity, Equity, and Inclusion Manager
National Cannabis Industry Association

Sponsored By:

Defining the Conversation: Minor, Novel & Synthetic Cannabinoids

There is more to cannabis than THC and CBD.  As our understanding (and commercialization) of cannabis evolves, new compounds like CBG, delta-8-THC, THCv, and others are coming onto the scene.  These various “minor” cannabinoids, however, bring with them a host of new issues.

NCIA’s Cannabis Manufacturing Committee, Scientific Advisory Committee and Hemp Committee are all collaborating on a series of #IndustryEssentials webinars over the next few months which will explore these issues with various subjects ranging from basic and advanced overviews of these molecules, regulatory recommendations, risk management and compliance concerns all the way to consumer and manufacturer safety.

To kick off this series we’re showcasing an initial session taking place on Wednesday, December, 14th at 3PM ET / 12PM PT introducing and framing the myriad regulatory, scientific, linguistic, and ethical issues that come with the rise of minor, novel, and synthetic cannabinoids. 

Learning Objectives
• Understand the role of minor, novel, and synthetic cannabinoids in the cannabis industry and the unique issues relating to their current status.

At the conclusion of the discussion they’ll be hosting a moderated Q&A session so don’t miss your chance to participate in this interactive educational experience with leading manufacturing, biochemical, and legal professionals from the hemp and cannabis industries.

15-minute Introductory Session

But before we get started … Acquire the foundational knowledge needed to dive deep into this session by watching this introductory video on Minor, Novel and Synthetic Cannabinoids.

During this brief 15-minute presentation our panelists Scott Seeley of Eastgate IP and James Granger of Clear Cannabis Inc, both members of NCIA’s Cannabis Manufacturing Committee, will walk you through the categories of compounds, outside of the commonly known big two – THC and CBD, and explain what is known about these compounds along with what the industry can do to move forward to provide safe products to consumers.

Committee Insights | Setting the Stage: Minor, Novel, and Synthetic Cannabinoids

There is more to cannabis than THC and CBD.  As our understanding (and commercialization) of cannabis evolves, new compounds like CBG, delta-8-THC, THCv, and others are coming onto the scene.  These various “minor” cannabinoids, however, bring with them a host of new issues.

NCIA’s Cannabis Manufacturing Committee, Scientific Advisory Committee and Hemp Committee are all collaborating on a series of #IndustryEssentials webinars over the next few months which will explore these issues with various subjects ranging from basic and advanced overviews of these molecules, regulatory recommendations, risk management and compliance concerns all the way to consumer and manufacturer safety.

To kick off this series we’re showcasing an initial session taking place on Wednesday, December, 14th at 3PM ET / 12PM PT introducing and framing the myriad regulatory, scientific, linguistic, and ethical issues that come with the rise of minor, novel, and synthetic cannabinoids. 

Register Now: [Click Here]

But before we get started … Acquire the foundational knowledge needed to dive deep into this session by watching this introductory video on Minor, Novel and Synthetic Cannabinoids.

During this brief 15-minute presentation our panelists Scott Seeley of Eastgate IP and James Granger of Clear Cannabis Inc, both members of NCIA’s Cannabis Manufacturing Committee, will walk you through the categories of compounds, outside of the commonly known big two – THC and CBD, and explain what is known about these compounds along with what the industry can do to move forward to provide safe products to consumers.

 

Member Blog: Cannabis Trends in 2022

by Jennifer Spanos, CannaBusiness ERP

As we approach the end of Q1 2022 and prepare to enter Q2, it’s become clear that this is going to be an important year for the cannabis industry. Cannabis business professionals and investors looking for signs of growth or stagnation in the industry will certainly be interested to see how things unfold. With that in mind, CannaBusiness ERP has put together a list of the top cannabis trends for 2022, and those trends appear to be pointing to more growth. However, it’s clear that difficulties for the cannabis sector are still imminent. 

Cannabis Trends for 2022

It almost goes without saying that the cannabis industry is complex and not without its fair share of challenges as the most highly regulated industry on the market. For businesses looking to grow, keeping up with complicated and evolving regulations can be stressful enough on a business in and of itself. Cannabis cultivators, processors, and consultants can look to cannabis industry trends to inform their operational decisions.

Increased legalization in the United States

Support for legalization in the USA continues to rise. In fact, a 2021 Gallup poll found that 68% of Americans are in favor of legalizing cannabis. Not only is this a record number of supporters, but this percentage also reflects a growing sentiment among Americans regarding the use of legal cannabis.

The changing tide towards legalization is clear – more states passed legislation to legalize cannabis either medicinally or recreationally in 2021, with several more introducing legalization bills in 2022. Because states operate independently of each other, every state will have its own policies as well as regulatory and compliance requirements, which can make things very confusing for cannabis businesses, especially multi-state operators (MSOs).

The National Cannabis Industry Association (NCIA) provides a map with state-by-state policies, which is one helpful tool for businesses looking to capitalize on expansion opportunities made possible as more states legalize cannabis. CannaBusiness ERP’s Guide to Expanding Into New Markets is another great resource for MSOs that provides state-by-state information, including Nevada, New York and Pennsylvania, and useful advice to consider when expanding into new cannabis markets.

Sales will continue to increase in 2022

Leading cannabis business experts are predicting strong sales growth this year due to the growth in legalized markets for cannabis. In fact, legal cannabis sales reached $19.5 billion in 2020, and experts are projecting sales to reach $30 billion in 2022. Washington State alone, which legalized cannabis ten years ago in 2012, is expected to generate $1.5 billion in sales, up from $1.2 billion sales in 2020. But Washington’s projected sales are small when you compare them to California’s projected sales of $7.6 billion. And as more states legalize cannabis, more sales will surely follow. 

Another contributing factor to increased cannabis sales is related to increased demand and a growing number of product types. More consumers are learning why cannabis can be beneficial to them, including more restful sleep, lowering stress, lessening pain symptoms, and recreational use. Additionally, with so many products on the market, cannabis consumers have many options to choose from, ranging from edibles to tinctures to topical ointments and more.

Cannabis experts are predicting a growth in cannabis consumption lounges – the cannabis equivalent of a bar or restaurant that allows consumers to use cannabis on-site. According to the Cannabis Industry Journal, the popularity of these lounges is growing because they provide consumers with a legal and safe space to consume cannabis. Just as with alcohol, the lounges are regulated according to laws set by each state. 

Increasing sales means cannabis businesses are at a critical junction and need to scale operations to meet the growing demand. One way cannabis growers and processors can capitalize on the demand is by streamlining the business end-to-end with cloud-based cannabis business management software. Otherwise known as Cannabis Cloud ERP, it manages production, cultivation, compliance, inventory, financials and traceability, sales, purchasing, and more, all in one system that lives in the Cloud.

Increased legislative bills and pressure for federalization

Under U.S. Federal Law in the Controlled Substances Act, cannabis is still considered a Schedule I substance. However, as the number of states legalizing cannabis either recreationally, medicinally or both has increased, so too has broader support for federalization in the U.S. government. In fact, there are several bills in the U.S. congressional houses that may positively impact the cannabis industry, especially with banking challenges.

Due to the Schedule I federal classification of cannabis, many banks will not work with cannabis companies, creating tedious banking hurdles that are difficult to solve. The National Law Review writes, “Yet, in comparison to other industries, legitimate licensed cannabis-related businesses remain hobbled by the difficulties they face in accessing traditional banking and financial services – largely due to the fact that ‘marijuana’ is still considered illegal on the federal level under the Controlled Substances Act (“CSA”). Currently, financial institutions (including federally insured banks) are hesitant, and oftentimes unwilling, to work with cannabis-related businesses due to fear of reprisal from federal banking regulators.”

Congressional representatives have introduced a decent amount of bills geared towards making much-needed changes to banking processes for cannabis, such as the SAFE Banking Act of 2021, passed by the U.S. House of Representatives in April 2021. It is currently awaiting action in the U.S. Senate with broad support from both sides of the aisle. If it passes both chambers of Congress, the act will allow cannabis companies to have business-critical access to banking and financial services and would reduce their need to operate as cash-only businesses and remove yearly challenges with tax accounting and reconciliation.

In addition to the SAFE Banking Act, there are other bills like U.S. Senate Majority Leader Chuck Schumer’s Cannabis Administration and Opportunity Act (CAOA), which is a push for federal cannabis legalization as well as an equity play. If passed, it is a measure towards ensuring small businesses and minority-owned businesses have access to financial services.

However, even with the tide of public opinion and legal momentum shifting in the industry’s favor, there remains a challenge with the U.S. tax code. Due to IRS Code Section 280E, if a business is trafficking certain controlled substances, like cannabis, that business is unable to deduct business expenses on their taxes. California has taken steps to address this by signing bills that help cannabis businesses overcome this code, but this is still a prohibitive factor for cannabis companies across the U.S.

Fortunately, cannabis companies that invest in a comprehensive Cannabis Cloud ERP solution with a reputable and experienced industry partner are better able to handle any hurdles that come their way.

Increased Merger and Acquisition (M&A) activity

Merger and Acquisition (M&A) activity has been steady in the industry and 2022 will see even more M&A activity. According to MJBizDaily’s article, “Marijuana M&A sizzled in 2021 and is poised for a hot 2022. Marijuana merger and acquisition activity proceeded at a torrid pace in 2021 – and could accelerate in 2022 – thanks to lower interest costs and pressure on larger companies to expand their footprints and boost revenue.”

Citing prominent cannabis acquisitions in 2021, such as Jazz Pharmaceuticals’ acquisition of GW Pharma (for $7.2 billion) and Trulieve’s acquisition of Harvest Health (for $2.1 billion), it is apparent that M&A is not going to slow down. According to Business of Cannabis, several deals are already taking place in 2022. Massachusetts-based Curaleaf acquired Arizona-based Bloom Dispensaries for $211 million, adding a total of 13 Arizona dispensaries and 121 dispensaries nationwide to Curaleaf’s portfolio.

For cannabis companies dealing in M&As and becoming Multi-state Operators (MSOs), it is essential to have a comprehensive, full-suite Cannabis Cloud ERP system that can run all the companies in one system. It is a crucial ingredient to manage their M&A transactions and handle their financial statements, compliance, business transactions, and more.

Most important of all, cannabis companies need to choose the right cannabis ERP.


Jennifer Spanos is the VP of Product and Vertical Strategy at CannaBusiness ERP. She has 14+ years of experience in cannabis and food manufacturing software and operations, working to maximize the efficiency and profitability of customers’ businesses.

CannaBusiness ERP: The Right Cannabis Business Management Software. Cannabis companies can grow their business with an ERP solution designed for the cannabis industry and for MSOs expanding into new markets. Learn how CannaBusiness ERP can set businesses on the right path. Manage financials, operations, quality, compliance, traceability, customers and more. 

CannaBusiness ERP is cannabis business management software that is built-in Sage X3 and configured by NexTec industry experts to deliver a complete cannabis business solution. Our specialization in developing solutions for the cannabis cultivation and processing industry has resulted in some of the most respected companies around the world managing their day-to-day operation using CannaBusiness ERP. 

To learn more about the fast-paced movement in cannabis legalization and how Cannabis Cloud ERP software can help your company keep pace, reach out to us. We’d love to show you what CannaBusiness ERP can do for your business. 

 

 

Member Blog: Let the Good Times Roll – New Jersey’s Cannabis Markets Primed to Meet High Demand with Two Big Announcements from the Cannabis Regulatory Commission

by Genova Burns LLC

New Jersey’s medicinal and adult-use cannabis markets are finally starting to take shape more than ten years after the medicinal marijuana program was launched. In the span of one month, the New Jersey Cannabis Regulatory Commission (“CRC”) not only announced awards for fourteen new medicinal cannabis licenses, but also, on November 9, 2021, gave the long-anticipated official notice that the state will soon begin the application process for the award of personal-use cannabis licenses.

In particular, the CRC announced this week that it will begin accepting adult-use applications for Class 1 Cultivator and Class 2 Manufacturer licenses, as well as licenses to run testing laboratories, beginning on Monday, December 15, 2021. Additionally, the CRC announced it will begin accepting applications for Class 5 Retailer personal-use cannabis licenses on March 15, 2022. While there is more information that will be forthcoming from the CRC, some major takeaways from the CRC’s November 9th notice are as follows:

  • The CRC set forth its scoring criteria and what applicants need to provide to score full points, as well as bonus points; 

  • Bonus points will be awarded for, among other things, confirmation that at least one owner has been a New Jersey resident for at least five years as of the date of the application, and submission of a signed project labor agreement with a bona fide labor organization; 

  • Local support for applicants will be critical as a municipality may, among other things, submit its preference to the CRC for the issuance of licenses to certain adult-use cannabis businesses;

  • Applications will be accepted on a rolling basis, with no limit on the number of licenses the CRC will award, other than a preliminary limit of 37 Class 1 Cultivator licenses prior to February 22, 2023. These cultivator licenses will be awarded to the first 37 applicants that meet all licensing, regulatory and operational requirements, and satisfy the conditions for priority approval; 

  • The only exception to the above cap on Class 1 Cultivator licenses is for those applicants who apply as a “microbusiness” (there are residency requirements to qualify as a microbusiness, and operations of a microbusiness shall include no more than 10 employees; a facility of no more than 2,500 square feet; possession of no more than 1,000 plants per month; and/or a limit of 1,000 pounds of usable cannabis per month); and

  • Priority review and approval will be given to applicants who meet the CRC’s social equity, diversely-owned, and impact zone business criteria, in addition to other metrics.

The CRC will hold a pre-application webinar on November 30, 2021 for anyone interested in personal-use cannabis licensure. The medicinal and personal-use cannabis markets have put down deep roots in New Jersey, and consumer demand is budding like never before. Don’t let questions about this new regulatory landscape leave you and your business up in the air. 


Charles J. Messina is a Partner at Genova Burns LLC and Co-Chairs the Franchise & Distribution, Agriculture and Cannabis Industry Groups. He teaches one of the region’s first cannabis law school courses and devotes much of his practice to advising canna-businesses as well as litigating various types of matters including complex contract and commercial disputes, insurance and employment defense matters, trademark and franchise issues and professional liability, TCPA and shareholder derivative actions.

Jennifer Roselle is a Partner at Genova Burns LLC and Co-Chair of Genova Burns’ Cannabis Practice Group.  She has unique experience with labor compliance planning and labor peace agreements in the cannabis marketplace. In addition to her work in the cannabis industry, Jennifer devotes much of her practice to traditional labor matters, human resources compliance and employer counseling.

Daniel Pierre is an Associate at Genova Burns and a member of the Cannabis and Labor Law Practice Groups. In addition to labor work, he likewise assists clients in the cannabis industry, from analyzing federal and state laws to ensure regulatory compliance for existing businesses to counseling entrepreneurs on licensing issues.

For over 30 years, Genova Burns has partnered with companies, businesses, trade associations, and government entities, from around the globe, on matters in New Jersey and the greater northeast corridor between New York City and Washington, D.C. We distinguish ourselves with unparalleled responsiveness and provide an array of exceptional legal services across multiple practice areas with the quality expected of big law, but absent the big law economics by embracing technology and offering out of the box problem-solving advice and pragmatic solutions. 

Our firm is proud of its proven track record of assisting multiple clients with being awarded medical licensure in New Jersey, and continuing to counsel clients on the dynamic federal and state regulatory landscape, as well as with corporate transactional, labor/employment, real estate, land-use and other issues.

Given Genova Burns’ significant experience representing clients in the cannabis, hemp and CBD industries from the earliest stages of development in the region, the firm is uniquely qualified to advise investors, cultivators, processors, distributors, retailers and ancillary businesses.

 

Committee Insights | 7.14.21 | How to develop a Risk Assessment for your Canna-Business

In this edition of our NCIA Committee Insights series originally aired on Wednesday, July 14, 2021 we were joined by members of our Risk Management and Insurance Committee for a discussion on how to evaluate and rank risks to your cannabusiness.

Our experts discussed the potential impact of risk to cannabusiness operations and how to effectively identify and rank them. The discussion included risks posed by product sales, partnership agreements and corporate culture. The expert panelists also shared insights gained from their respective areas of specialty which include; Legal, Financial, Manufacturing, Technology and Insurance. Their insights will arm YOU with the tools needed to fortify yout operational practices and minimize or avoid costly losses.

Presentation Slide Deck: https://bit.ly/3hJJwLD

Panelists:
Helkin Berg
CEO
Strimo

Merril Gilbert
Co-Founder & CEO,
TraceTrust

Kevin Haller
Principal
Akene Consulting, LLC

Mathew Grimes
Vice President – Cannabis Specialty Group
HUB International Limited

Summer Jenkins
Business Development Manager
Cannasure Insurance Services

Service Solutions | 7.13.21 | Learn How to Grow Your Cannabis Business with Acumatica Cloud ERP

NCIA’s #IndustryEssentials webinar series is our premier digital educational series featuring a variety of interactive programs allowing us to provide you timely, engaging and essential education when you need it most. The Service Solutions series is our sponsored content webinar program which will allow business owners the opportunity to learn more about premier products, services and industry solutions directly from our network of established suppliers, providers and thought leaders.

With shifting public sentiment, state-specific cannabis laws, and licensing requirements, the Cannabis industry is in a constant state of change. From securing capital and licensing to hiring qualified people and meeting compliance mandates, the path to success is filled with challenges, but a mobile, adaptable business management solution will expedite and ensure your progress.

Enterprise resource planning (ERP) solutions provide Cannabis companies like yours cloud-based financials, inventory management, sales, operations, as well as tracking, monitoring, and reporting on raw materials from seed to sale. Learn how Acumatica – the leading innovator in Cloud ERP – will make your growing business more agile and efficient.

Presentation Slide Deck: https://bit.ly/3yUrgVz

Learning Objectives
• Hear an Acumatica company overview, real success stories from Cannabis companies just like yours, followed by a product demo.
• Learn how ERP can be used to track, monitor, and report on raw materials and finished goods.
• How to manage accounting, sales, operations in one system and track the cost of goods – manage staff, assign tasks, and reduce manual error calculations.
• Streamline the signal flow throughout your business with the world’s fastest growing and most adaptable cloud ERP solution, Acumatica.

Panelists:

Sean Chatterjee
Vice President, Partner Sales
Acumatica

Eric Moreau
Director, Presales
Acumatica

Supreme Court of Cannabis?

Photo By CannabisCamera.com

By Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations

While it’s become commonplace to hear cannabis come up in the halls of Congress, and increasingly so in the White House, there’s one branch of government that has been quieter on the topic: the Supreme Court (SCOTUS). However, this week, conservative Justice Clarence Thomas changed that when the court actually declined to weigh in on a 280E case. 

Towards the end of 2020, a Colorado medical cannabis dispensary decided to ask the U.S. Supreme Court to review a lower-court decision that allowed the IRS to obtain business records in order to apply the 280E provision of the tax code. (Fun fact: NCIA member Jim Thorburn, of the Thorburn Law Group, was actually the counsel on record for this appeal!) According to the filings, the IRS overstepped its authority and also violated the company’s Fourth Amendment privacy rights. Some of the questions the company took to the highest court in the land:

  • Does the Fourth Amendment protect taxpayers from having confidential information released to the IRS and federal law enforcement authorities?
  • Does the application of Section 280E to state-legal marijuana businesses violate the federal constitution? 

Again, while SCOTUS declined to consider this appeal, Justice Thomas took issue with the underlying state/federal discrepancy in the country’s cannabis laws and issued a searing statement. He specifically discussed a 2005 ruling by SCOTUS in a case called Gonzales v. Raich. In this ruling, the court narrowly determined that the federal government could enforce prohibition against cannabis cultivation that took place wholly within California based on its authority to regulate interstate commerce. Check out a few excerpts from Justice Thomas’ statement below: 

  • “Whatever the merits of Raich when it was decided, federal policies of the past 16 years have greatly undermined its reasoning. Once comprehensive, the Federal Government’s current approach is a half-in, half-out regime that simultaneously tolerates and forbids local use of marijuana. This contradictory and unstable state of affairs strains basic principles of federalism and conceals traps for the unwary.” 
  • “Given all these developments, one can certainly understand why an ordinary person might think that the Federal Government has retreated from its once-absolute ban on marijuana. See, e.g., Halper, Congress Quietly Ends Federal Government’s Ban on Medical Marijuana, L. A. Times, Dec. 16, 2014. One can also perhaps understand why business owners in Colorado, like petitioners, may think that their intrastate marijuana operations will be treated like any other enterprise that is legal under state law.” 
  • “As things currently stand, the Internal Revenue Service is investigating whether petitioners deducted business expenses in violation of §280E, and petitioners are trying to prevent disclosure of relevant records held by the State. In other words, petitioners have found that the Government’s willingness to often look the other way on marijuana is more episodic than coherent.” 
  • “This disjuncture between the Government’s recent laissez-faire policies on marijuana and the actual operation of specific laws is not limited to the tax context. Many marijuana-related businesses operate entirely in cash because federal law prohibits certain financial institutions from knowingly accepting deposits from or providing other bank services to businesses that violate federal law. Black & Galeazzi, Cannabis Banking: Proceed With Caution, American Bar Assn., Feb. 6, 2020. Cash-based operations are understandably enticing to burglars and robbers. But, if marijuana-related businesses, in recognition of this, hire armed guards for protection, the owners and the guards might run afoul of a federal law that imposes harsh penalties for using a firearm in furtherance of a ‘drug trafficking crime.’” 
  • “Suffice it to say, the Federal Government’s current approach to marijuana bears little resemblance to the watertight nationwide prohibition that a closely divided Court found necessary to justify the Government’s blanket prohibition in Raich. If the Government is now content to allow States to act “as laboratories” “‘and try novel social and economic experiments,’” Raich, 545 U.S., at 42 (O’Connor, J., dissenting), then it might no longer have authority to intrude on “[t]he States’ core police powers . . . to define criminal law and to protect the health, safety, and welfare of their citizens.””

Just to be clear, these statements don’t change the law of the land, nor do they indicate formal policy developments. They do, however, show that the constantly shifting public perception of cannabis is affecting the way we as a society think about marijuana, which will, at some point, translate into policy. It’s no small feat that one of the most conservative justices on the Supreme Court has weighed in so substantially on this topic. Continue the momentum and join the movement with NCIA!

 

 

Member Blog: Eradicating Pesticide Use in the Cannabis Industry – Without Sacrificing Crop Quality 

By Carlos Perea, Co-founder and CEO of Terra Vera

One of the direst, yet infrequently discussed, issues in the cannabis industry is the lack of federal guidelines regulating pesticide use. Despite the adult-use cannabis market consistently expanding on a state-by-state basis, as long as the crop remains illegal on the federal level, much-needed national oversight will continue to be limited. 

The more states that legalize under a national prohibition, the more varying and convoluted state-by-state crop management regulations may become. Meanwhile, without standards firmly set in stone across the country, some cultivators have turned to hazardous chemicals to control pathogens and preserve their crop yields. Such cultivation solutions can compromise the safety of staff, the environment and, of course, the consumers. 

Health Hazards of Pesticides in Cannabis

Even when shopping at a licensed adult-use or medical dispensary, consumers today still cannot be 100 percent confident that the cannabis they are purchasing is completely safe and free of contaminants and unwanted components, such as pesticides, harmful microbials, heavy metals, and solvents. Emerging research from Colorado State University shows that contaminants in cannabis, including pesticides, “are imminent threats that directly impact public health and wellness, particularly to the immunocompromised and pediatric patients who take cannabis products as a treatment for numerous human disorders including cancer patients and those suffering from epileptic seizures.” With many consumers turning to cannabis for its health benefits, and because it’s a natural alternative to heavily processed pharmaceuticals, the cultivation process should honor cannabis’ medical use by being as safe and accountable as possible.

The pesticide issue is compounded when we think about how cannabis is often consumed: through inhalation. Additional research has shown that nearly 70 percent of the pesticides used in cultivation remain in the cannabis flower that consumers smoke. 

Even when these same pesticides are permitted in other types of American agricultural industries, this is a global anomaly. More than 25 percent of pesticides used in the U.S. are banned in other countries.

Moving Towards a Pesticide-Free Flower  

So how do we work towards a pesticide-free cannabis industry? Licensed businesses, regulators, and consumers need to band together to set standards and guidelines for pesticide use across each legal state, and eventually on a federal level. 

In 2020, Arizona took a page out of Oregon’s playbook by establishing a regulatory agency and adopting Oregon’s standards for limiting pesticide use in cannabis, setting a prime example for inter-state collaboration and accountability. Measures also need to be taken to lower the cost of testing cannabis products for pesticides and contaminants. And, of course, we need to embrace more sustainability and environmentally-minded education, and emerging technologies.

While testing does not necessarily prevent contaminants during the grow process, frequent, reliable, and standardized testing can help ensure contaminated products don’t make it to market. Unfortunately, testing requirements continue to differ by state, with some being more lenient than others. For instance, certain states only test for certain types of microbials, while others allow companies and cultivators to cherry-pick samples. This makes it easier for companies’ products to meet compliance, however, doesn’t ensure that the final products available for purchase will be safe for the consumer. Looking ahead towards inevitable federal legalization, testing requirements need to be uniform across all legal markets.

However, cultivators shouldn’t wait for federal oversight to hold themselves to the highest possible standards. There are inexpensive testing procedures currently available that cultivators can adopt before sending their cannabis products to the lab, which can help to better ensure what they are doing is working and catch a problem before it starts. 

There are also non-toxic crop management technologies available now, and in addition to seeking out vendors offering innovation-driven solutions to replace conventional pesticides, cannabis companies and their cultivators can embrace simple, preventative measures to minimize outbreaks of bio-contaminants. This includes controlling humidity at the grow site, plant spacing, adequate air circulation, and implementing a strict chain of custody throughout the supply chain. Successful prevention mitigates the temptation to turn to potentially toxic pesticides to eradicate contaminants. 

While federal legalization looms, it likely won’t happen this year. Therefore, state regulatory agencies should continue to be prepared with comprehensive outreach plans to communicate their pesticide and testing regulations to cultivators and their companies, ensuring that industry participants are fully informed. Planning and communication also sets the stage for the industry to have tried and true standards already in place by the time federal legalization does come to fruition. 

The good news is the cannabis industry has the potential to lead a paradigm shift towards a safer agricultural sector as a whole. In years past, the amount of information shared between cannabis and other agricultural industries was limited, cutting cannabis cultivators off from reliable best practices for cultivation and crop management. However, this is changing quickly. Cannabis is also pushing the envelope towards more sustainable practices, with more cultivation sites moving indoors and into greenhouses, complete with LED lighting and additional sustainable practices. Cannabis cultivators are becoming more cutting-edge and setting an example for the broader agricultural community. The industry should continue these forward-thinking approaches by embracing pesticide-free solutions on a broad, scalable level.


Carlos Perea is the CEO and Co-founder of Terra Vera, an agricultural technology company offering innovative solutions to replace conventional pesticides and increase product safety and consumer confidence within the agriculture industry. Carlos is a serial entrepreneur with a focus on the intersection of technology and social impact. Prior to founding Terra Vera, he formed MIOX Corporation, a technology company that treats water in a variety of applications and is distributed in over 30 countries. He is active as an advisor and board member with several early stage companies and social enterprises including YPO, where is he an active board member. Carlos has an MBA from the Stanford Graduate School of Business, and an BS in Mechanical Engineering from the University of New Mexico.

 

Member Blog: How To Know When To Expand

by Ryan Douglas, founder of Ryan Douglas Cultivation

In thriving cannabis markets, demand exceeds supply. For successful cultivation businesses, expansion is the logical next step — either through organic growth or the acquisition of operational cultivation assets. Before moving forward with an expansion project, entrepreneurs should carefully determine when is the appropriate time to expand. There are a number of market indicators that can help entrepreneurs decide if expansion is right for them — such as market demand, growth of market, and the potential for adult-use sales. 

Current market demand for your product

What is the overall market demand for cannabis, and, more importantly, what is the demand for the cannabis that you cultivate? The answers to this question should be reflected in your sales volume and price point, and it should help influence a company’s decision on whether or not to expand. If you’re wholesaling your product to dispensaries for re-sale, or to large oil extractors of raw cannabis biomass, are you currently selling everything that you grow? Are customers calling you looking for product before it’s even harvested? Or, are you spending hours on the phone trying to unload product before the next harvest? How does your product sell at the dispensary, compared to your competitor? Does it fly off the shelf or frequently find itself discounted as the weekly special?

The price at which you’re selling your dried cannabis flower should be an excellent indication of whether or not expansion makes sense. Do you spend much time haggling over money, or can you name your price? In hot new markets, where there are few suppliers and great demand, wholesale cultivators can charge up to $4,000 per pound for indoor-grown cannabis. In more seasoned markets with multiple cultivators, wholesale prices are closer to $1000 to $1500 per pound. The closer your sales are to $4,000 per pound, the more it makes sense to expand. 

Figure 9.2 Wholesale prices across the U.S. as of April 2020. Copyrighted by Marijuana Business Daily, MJBizDaily.com. Used with permission.

Size and growth of market

The size and growth rate of a medical cannabis market is a good indicator of whether or not a business should consider expanding. In regions with a medical cannabis program, the percentage of the adult population registered as medical cannabis patients is an excellent indicator of the current size of the medical market. However, a cannabis business considering an expansion should be less concerned with how big the market is today, and more focused on how large it may be tomorrow instead. 

In most U.S. states, about two percent of the adult population become medical cannabis consumers. A rate of lower than one percent is rare. This typically occurs when there are few doctors willing to prescribe cannabis, or there’s a very restrictive list of medical conditions for which cannabis can legally be prescribed. In Oklahoma, more than seven percent of adults are registered cannabis patients, while in Ohio only 0.6% of the adult population have registered as medical patients. If the percentage of adult medical patients in your area is above two percent, it’s a good sign that the medical cannabis industry is thriving. Markets with more patients are more attractive for cultivators to expand.

Figure 9.3 The top three and bottom three U.S. medical cannabis markets by percentage of registered adult patients. Source: Marijuana Policy Project 

The rate of new patient registrations is a much better indicator of a given market’s potential for growth. Single-digit increases in new patient registrations year-over-year are not positive indicators. Cultivation businesses considering expansion want to be in states where the number of medical patients is increasing by at least twenty percent annually. This kind of growth would indicate a widespread adoption of medical cannabis and few barriers to receiving a medical cannabis prescription. Florida is an example of a thriving medical cannabis market, where patient registrations increased fifty percent during 2019 alone to over 300,000 patients. This kind of positive growth gives cultivation businesses a good reason to expand.

Competition

However, a robust cannabis market may not make the best expansion opportunity if there are numerous cultivators competing for the same customer base. California and Colorado are established cannabis markets — both medical and [adult-use] — servicing millions of customers each year. That’s exactly the reason expanding in those states may not be as lucrative as opportunities presented by less populated states. In 2019, California sold an estimated $3 billion in recreational cannabis — but there are nearly 3,000 licensed recreational cultivators in the state. In saturated cultivation markets, wholesale flower is quickly relegated to a commodity. Large, established markets, like California and Colorado, don’t hold the same potential value for expansion as a state that may have fewer consumers but is on the cusp of legalization. 

Competition doesn’t only come from other licensed commercial cultivators, but from caregivers as well. Caregivers are home growers that are permitted to cultivate plants for medical cannabis patients. Consumers appreciate the personal touch that caregivers offer their clients, and the growers have more flexibility on pricing than do dispensaries. In medical markets, a thriving caregiver industry can seriously hamper retail dispensary sales and lessen the need for wholesale cultivators to supply them. Cultivation businesses should be cautious of expanding into markets with a strong caregiver presence. Coupled with competition from other commercial cultivators, this may not be as lucrative an expansion opportunity as other markets without such a caregiver network. 

Adult-use cannabis is coming

The biggest influencing factor for cultivation companies considering expansion should be impending adult-use legislation. Servicing adult-use markets is much easier and more profitable than servicing medical cannabis markets. There are no patients, doctors, or prescriptions involved, and there’s a robust customer base on the very first day of sales. There is no need to develop a demand for recreational cannabis, because it already exists — everywhere! It’s only a question of transitioning paying customers from the illicit market to the legal market. 

The ideal situation for expansion is a cannabis business operating a cultivation facility in a medical cannabis market where there’s good reason to believe there will be a transition to recreational cannabis soon. Medical dispensaries are often the first to receive permission to commence recreational sales, since they already have the infrastructure and processes in place. However, these dispensaries never have enough product to meet demand. In an attempt to protect their medical patient base, most fall woefully short of supplying the adult-use market. Expanding cultivation activities in anticipation of recreational use can place a cannabis business in an excellent position to service this new market. 

This situation can be even more lucrative if the state that legalizes recreational sales is bordered by states with only medical cannabis laws, or no cannabis legislation at all. Adult-use stores sell to individuals from out of state that are 21 years of age or older, and cross-border traffic contributes substantially to a state’s total recreational cannabis sales. In the first four months of Illinois’ recreational cannabis program, transactions from out-of-state customers accounted for twenty percent of total state sales. 


Excerpt from From Seed to Success: How to Launch a Great Cannabis Cultivation Business in Record Time by Ryan Douglas. Douglas is founder of Ryan Douglas Cultivation, a cannabis cultivation consulting firm. He was Master Grower from 2013-2016 for Tweed, Inc., Canada’s largest licensed producer of medical cannabis and the flagship subsidiary of Canopy Growth Corporation.

State of the States – Cannabis Policy Reform in the Current Legislative Sessions

by Morgan Fox, NCIA Director of Media Relations

The last few weeks have seen quite a bit of excitement for the possibility of comprehensive federal cannabis policy reform being closer than it has ever been, but what about the states?

Historically, the vast majority of progress has been made at the state level, and this year is shaping up to be another one full of victories for legalization advocates as state governments struggle to support their economies, create new tax revenue and job sources, and tackle long-overdue criminal justice reforms.

The overwhelming approval by New Jersey voters of a referendum to make cannabis legal for adults last year has put the spotlight firmly on the Northeast and mid-Atlantic regions. With state legislative sessions already underway, a number of states are already prioritizing legalization much more heavily than in years past even as New Jersey lawmakers struggle to pass enacting legislation to carry out the will of the voters in a fair and equitable manner. It is pretty clear that New Jersey’s neighbors don’t want to be left behind when it starts reaping the benefits of regulated cannabis markets.

Early this year, New York’s Gov. Andrew Cuomo released a statement outlining his plan to make cannabis legal in the state, and just recently added amendments that would allow delivery, clarify the tax system, and reduce penalties associated with some cannabis activities. There are still some concerns with this plan, including the amount of funding that would actually go toward repairing the disparate harms caused by prohibition and the lack of legal home cultivation. Regulated cannabis in New York could be worth more than $3.5 billion and create more than 60,000 jobs, making it one of the largest state cannabis markets in the country.

Meanwhile, in Delaware, a legalization bill that was approved in the state House in 2019 is slated to be reintroduced by the sponsor in the coming weeks. This bill would come on the heels of a report released last month by the state auditor which estimated that Delaware could take in $43 million annually with a 20% excise tax, and create more than 1,400 jobs over a five year period. In what seems to be a disturbing trend in some state legislatures this year, this bill is not expected to initially include home cultivation either.

In Connecticut, however, a new adult-use bill has been introduced that would center on restorative justice and social equity in the industry and would allow adults to grow limited amounts of cannabis in their homes. This bill has strong support in the state legislature but may soon have to compete with Gov. Ned Lamont’s proposal, which is expected to be released soon.

Nearby Pennsylvania is likely to consider adult-use legislation this year, with Gov. Tom Wolf (along with the incredibly supportive and newly internet-famous lieutenant governor) urging lawmakers to address the issue and – earlier this month – calling it a priority for his state’s annual budget proposal. Rhode Island lawmakers are expected to consider legalization again this year as well, and with the departure of Gov. Raimondo, it is more likely that the emphasis will shift away from a state-run model and back to regulating private businesses.

Farther South, Virginia made headlines this month by becoming the first state in 2021 to have both chambers of its legislature approve adult-use bills. Lawmakers are committed to ironing out the differences between the two bills this month during an extended session. With Gov. Ralph Northam in full support, Virginia stands poised to become the 16th state overall to make cannabis legal for adults and the first state to do so in the South, and it would be only the third to regulate cannabis through its legislature.

Adult-use legislation has also been introduced in Maryland, with supporters and cosponsors optimistic that it could be passed this year, though lawmakers there are not as far along in the process as their neighbors in Virginia. And in medical news, advocates in South Carolina are taking another shot at passing a medical cannabis bill there.

There are signs of progress from elsewhere in the nation as well. After running out of time in an emergency session last year, New Mexico’s governor and lawmakers wasted no time in getting back to legalization efforts this year. There are currently several bills being considered, and it appears very likely that some form of adult-use will be approved there this year.

This is just a snapshot of the momentum and positive movement we are seeing at the state level this year. If you are interested in up-to-date information about all cannabis-related state legislation in the U.S., please consider subscribing to Marijuana Moment’s bill tracker.

Unfortunately, the news isn’t all good.

In South Dakota, where voters approved both medical and adult-use initiatives in November by wide margins, advocates have suffered a temporary setback on the adult-use front. After a pair of law enforcement officials sued to have the adult-use bill thrown out because it addresses too many issues for a constitutional amendment, a circuit court judge ruled in their favor earlier this month. This situation is extremely disheartening and outrageous: the will of the people was overturned by a judge who was appointed by a governor who not only actively campaigned against the ballot initiative but also paid for the lawsuit to overturn it with taxpayer money! However, supporters have appealed the decision to the state Supreme Court.

In Montana, where voters also passed an adult-use initiative in November, supporters are faced with another lawsuit on similar grounds that was filed by opponents. However, observers are skeptical of that suit being successful, and lawmakers are moving ahead with developing enacting legislation.

And in Idaho, where a medical cannabis initiative was prevented from getting on the ballot last year, prohibitionist lawmakers are moving forward with a bill that would prevent any future legislation to make cannabis or any other currently illegal substance legal. If passed, this bill would be put before the voters in 2022, where it could very well be on the same ballot as a medical cannabis referendum.

Despite efforts to overturn progress and maintain failed and harmful cannabis policies, things are generally looking up and we expect several states to pass laws to stop arresting cannabis consumers and establish legal, regulated marketplaces in the near future.

One last item, so as not to totally leave out federal news: this week, NCIA joined members of Congress, advocates, and other industry leaders in calling on Pres. Biden to pardon all non-violent cannabis convictions and commute the sentences of anyone currently serving time.

Stay tuned for further developments!

 

Member Blog: Soil Is A Way Of Life, But What Is Living Soil?

by Lee Spivey, Marketing Manager at Good Earth Organics

Our preferred definition of living soil is the community of microbes working together breaking down organic matter which, in turn, provides valuable nutrition to the plants.

Soil microbes are essential for decomposing organic matter and recycling old plant material. Microorganisms are the unseen majority in soil and make up a huge part of soil’s genetic diversity. This means easier absorption of nutrients by plant roots, reduced need for watering, limited erosion, and improved aeration. A combination of organic materials such as compost, coco coir, peat moss, aged tree bark, manure, worm castings, and more can be used to make a base for living soil. Like all living things, soil needs water, and flows water along the path of least resistance to bring hydration and nutrients to plant roots. Water remains in the soil by storing itself in porous minerals for later use. 

Most beneficial life requires oxygen to survive and the complexity of living soil ensures air and moisture are continually cycled to keep roots oxygenated and allows plants to breathe. Organic soil additives must be broken down by microorganisms for plants to use them and three important microorganisms for living soil to function properly are bacteria, actinomycetes, and fungi. 

Bacteria are single-cell microorganisms that exist in most of the earth’s habitats and are the most dominant group in soil. Bacteria are present in all types of soil but their populations diminish with the increase of soil depth. Though bacteria can live under starvation and dehydration conditions they reproduce quickly when optimal water, food, and environmental conditions exist. Having a diverse bacterial population increases soil productivity and crop yields over time, while also assisting in decomposition. 

Actinomycetes are similar to bacteria and fungi, but do not have the chitin and cellulose found in the cell walls of fungi. The deeper your soil, the more actinomycetes will be found as their numbers increase in the presence of decomposing organic matter. Temperatures between 77°F and 86°F are ideal for actinomycetes growth and the most commonly found are thermoactinomyces and streptomyces which help prevent molds, mildew, and other soil pathogens. 

Fungi are second only to bacteria in their abundance in soil and the quality of the soil has a direct effect on their numbers. They are found in all soils and have filamentous mycelium, composed of individual hyphae. The quality and quantity of organic inputs present in soil have a direct effect on fungal numbers. Degradation of organic matter along with help in soil aggregation are the main functions of fungi in soil. Additionally, certain species of fungi produce substances similar to humics in soil which improve nutrient uptake in the root zone. Some fungi also aid in the mobilization of soil phosphorus and nitrogen — two of the three most important minerals — into plants. With cannabis, in particular, establishing roots becomes much less challenging when mycorrhizal fungi are introduced. “Myco – rhizal” literally means “fungus – root” and describes the mutually beneficial relationship between the plant root and fungus. These specialized fungi colonize plant roots and extend far into the soil to acquire resources beyond the “nutrient depletion zone” that plants can’t access alone. Mycorrhizal fungal filaments in the soil are truly living extensions of plant root systems and are more effective in nutrient and water absorption than the roots themselves as hyphae, or fungal roots, grow much faster and longer than the roots of the plant itself. This expands the surface area of the plant root allowing for increased access to nutrients, water, and oxygen.

There are many ingredients that work synergistically for optimum growth effects and less environmental impact. It is up to the individual which ingredients they prefer, but I recommend a blend of coco, peat, and compost to start. After accomplishing a drainable media you can begin working in the biologicals and bringin the soil to life.  

Growing with organic inputs and methods not only provides healthier plants because they are grown without toxic or persistent pesticides or fertilizers, it contributes to a healthier planet. Growing in organic living soil builds carbon with less waste while keeping toxic and persistent pesticides and fertilizers out of the soil, water systems, and our bodies. Many books have been written about living soil and this is just a small glimpse of its importance to businesses in the cannabis industry. For me, it breaks down to dollars and sense, as it does with many businesses that care about their bottom line. Living Soil allows for the grower to reuse soil for many years, saving them money on labor, fertilizer, and growing media. As growers, we are always working toward minimizing our carbon footprint and living soils empower growers to consistently achieve higher yields and organic purity.


Lee Spivey is the Marketing Manager for Good Earth Organics, Inc. a premium potting soil manufacturer in Oregon. As the driving voice behind the brand, it is his personal mission to make the world aware of the benefits of using organic living soil. After seven years with the company, he is well versed in the science behind the soil and the organic mission behind the brand.

Good Earth Organics, Inc. shares this passion for clean, living soil and has a vision to bring GEO products to growers everywhere that care for increased yields and organic purity.

Member Blog: Breaking Up Vertical Integration

by Ryan Douglas, Ryan Douglas Cultivation, LLC

Cultivation businesses should consider specializing in just one stage of the cannabis cultivation process. The industry has focused heavily on vertical integration, and some regulating bodies require licensees to control the entire cannabis value chain from cultivation and processing to retail. This requirement is not always in the best interest of the consumer or the business, and will likely change as the industry evolves. Not only will companies specialize in each step of the value chain, but we’ll see even further segmentation among growers that choose to focus on just one step of the cultivation process. Cannabis businesses that want to position themselves for future success should identify their strengths in the crop production process and consider specializing in one part of it.   

Figure 1. Stages of the cultivation process that could be segmented into separate businesses. 

Elsewhere in commercial horticulture, specialization is the norm. It is unlikely that the begonias you bought at your local garden shop spent their entire life inside that greenhouse. More likely, the plant spent time hopping between specialists in the production chain before landing on the retail shelf. One grower typically handles stock plant production and serves as a rooting station for vegetative cuttings. From there, rooted cuttings are shipped to a grower that cares for the plants during the vegetative stage, and once they are an appropriate height for flowering, they are shipped to the last grower to flower out and sell to retailers.

Cannabis businesses should consider imitating this model as a way to ensure competitiveness in the future. In the U.S., federal law does not yet allow for the interstate transport of plants containing THC, but the process can be segmented within states where vertical integration is not a requirement. As we look ahead to full federal legalization in the US, we should anticipate companies abandoning the vertical integration model in favor of specialization. In countries where cannabis cultivation is federally legal, entrepreneurs should consider specialization from the moment they begin planning their business. 

Figure 2. Rooting stations specialize in just one segment of the cultivation process: rooting vegetatively propagated cuttings. Photo: Jessica Firger

Cultivators that specialize in breeding and genetics could sell seeds, rooted cuttings, and tissue culture services to commercial growers. Royalties could provide a recurring source of income after the initial sale of seeds or young plants. Contracting propagation activities to a specialist can result in consistently clean rooted cuttings that arrive certified disease-free at roughly ¼ the cost of producing them in-house. This not only frees up space at the recipient’s greenhouse and saves them money, but it eliminates the risks inherent in traditional mother plant and cloning processes. If a mother plant becomes infected, all future generations will exhibit that disease, and the time, money, energy, labor, and space required to maintain healthy stock plants is substantial. Growers that focus on large scale cultivation would do well to outsource this critical step.

Figure 3. Pre-finished plant material is six to 18 inches tall. Photo: Ryan Douglas

Intermediary growers could specialize in growing out seeds and rooted cuttings into mature plants that are ready to flower. These growers would develop this starter material into healthy plants with a strong, vigorous root system. They would also treat the plants with beneficial insects and inoculate the crop with various biological agents to decrease the plant’s susceptibility to pest and disease infestations. Plants would stay with this grower until they are about six to 18 inches in height, the appropriate size to initiate flowering. 

The final stage in the process would be the flower grower. Monetarily, it’s the most valuable stage in the cultivation process, but it’s also the most expensive. This facility would have the proper lighting, plant support infrastructure, and environmental controls to ensure that critical grow parameters can be tightly maintained throughout the flowering cycle. The grower would be an expert in managing late-stage insect and disease outbreaks, and they would be cautious not to apply anything to the flower that would later show up on a certificate of analysis (COA), rendering the crop unsaleable. This last stage would also handle all harvest and post-harvest activities, since shipping a finished crop to another location is inefficient and could potentially damage the plants. 

As the cannabis cultivation industry normalizes, so too will the process by which it is produced. Entrepreneurs keen on carving out a future in the industry should focus on one stage of the cultivation process, and excel at it.  


Ryan Douglas provides cannabis consulting services through his company, Ryan Douglas Cultivation, LLC. He has worked in commercial horticulture for 23 years and specializes in legal cannabis start-ups. Prior to entering the cannabis industry, Ryan spent 15 years as a commercial greenhouse grower of ornamental and edible crops, growing up to 600,000 plants annually. As Master Grower from 2013 to 2016, Ryan directed cultivation for Tweed Inc., Canada’s largest licensed producer of cannabis and the flagship subsidiary of Canopy Growth Corporation. Ryan helps new cannabis businesses come to market quickly and spend less money getting there. 

NCIA Committees: Spring 2020 Update On Achievements And Projects

NCIA’s member-driven committees are an opportunity for individuals from NCIA member companies to get directly involved in specific industry issues and sectors. These volunteer-driven efforts engage members’ expertise and passion to drill down in those areas to effect change, provide professional development opportunities, and develop best practices and guidelines that will shape the future of our industry.

We recently checked in with these various committees to learn more about what they’re up to and what projects they’re working on this term. Get updated on their activities below.


Risk Management & Insurance Committee (RMIC)

The RMIC has recently contributed to several NCIA white papers and educational webinars. They are currently working on an insurance manual. The committee has divided into sub-committees responsible for managing white papers, webinars, and the manual. 

Scientific Advisory Committee (SAC)

SAC’s vision is to disseminate educational materials to NCIA members on scientific topics in the cannabis industry and to advise on other NCIA initiatives, ensuring that any formal recommendations produced are scientifically sound, sustainable, and legitimate. This term, SAC published a blog discussing why everyone should know about the endocannabinoid system.

SAC is working on other pieces addressing topics such as the recent vape illnesses from a physician’s perspective, indica versus sativa designation, how cannabis can help the opioid crisis, common scientific myths confusing the industry, and budtender and consumer education about the endocannabinoid system.

SAC is also developing a webinar that discusses what should be on a label, how to read a label, and how to associate what’s on a label with either statements on efficacy or marketing/branding.

Cannabis Cultivation Committee (CCC)

The committee has recorded two podcast episodes for NCIA’s Cannabis Industry Voice Podcast. The first was a Cultivation Best Practices Roundtable, hosted by Noni Goldman of the CCC. In that episode, Cody Hitchcock of Smokey’s 420 and James Cunningham of Fog City Farms were interviewed to shed light on their different growing styles and techniques, focusing on the ways that they implement sustainability in their operations.

The second soon-to-be-released interview was with High Times’ new CEO Stormy Simon, and was hosted by CCC Chair Mo Phenix and member Noni Goldman. This interview explored Stormy’s history and how she got to where she is today, as well as what High Times is up to, and where Stormy sees the industry going.

More podcasts to come in the next couple of months from the CCC! Keep an eye out for an episode or two on regenerative agriculture.

Packaging & Labeling Committee (PLC)

The PLC sub-committees have each contributed to a blog or presentation up to this date. The Sustainability sub-committee has worked with Kaitlin Urso and team in regards to their White Paper. A panel discussion proposal has been submitted for future NCIA conferences. 

NCIA’s Northeast Cannabis Business Conference in Boston (February 2020) Panel Discussion on the Future of Cannabis Packaging went great!

State Regulations Committee (SRC)

NCIA’s State Regulations Committee has continued to produce content to help educate and inform members on the latest developments in the world of state regulation of cannabis. As the industry’s law and regulations change quickly across the country, the SRC members stay ahead of the curve and share their insight in a variety of forms. These projects include panel presentations at NCIA conventions, published blogs, and interactive webinars. In this quarter, they published three blogs, produced one webinar, presented on two panels, and participated in an NCIA summit.

Blogs Published:

The Social Consumption Sub-Committee published “California Social Consumption Leads the Way” by Debby Goldsberry.

The Interstate Commerce Sub-Committee published two blogs: 

The first blog “Ending the Ban on Interstate Commerce” was published on January 15, 2020. 

Shortly thereafter, it followed-up with “Interstate Cannabis Commerce Will Benefit Public Safety, Consumer Choice, and Patient Access.”

Another sub-committee that aims to provide advice on governmental relations published the blog “Working With Your Local Government as a Cannabis Cultivator.

Webinars:

As the committee strives to keep everyone updated on burgeoning legal topics, the SRC committee presented a webinar on Michigan, a newly regulated market. The webinar provided information on this key Midwestern state, “Michigan’s Adult-Use Market – What Comes Next?

Conferences:

SRC members also traveled from across the country to share their expertise on panel sessions at NCIA’s Northeast Cannabis Business Summit in February 2020 in Boston.

The Social Equity Sub-Committee leaders, Erin Fay, Chris Jackson, and Margeaux Bruner provided helpful insight during their session, “What You Need To Know For Winning Applications and Successful Operations That Promote Diversity and Inclusion.”

Sean Donahoe and Gabriel Cross of the SRC’s Interstate Commerce Sub-Committee presented on the issues surrounding interstate commerce and strategies for preparing for this anticipated change in the cannabis industry.

Also, SRC members participated in the NCIA’s summit about tackling the illicit market.

The State Regulations Committee is excited about its work and continues to stay knowledgeable about the ever-changing legal and regulatory landscape. Their projected work includes a webinar on the Illinois adult-use market and a wide range of written projects. Stay tuned!

Banking & Financial Services Committee (BFSC)

The committee’s vision is to provide the NCIA member base with current and actionable information related to Banking and Financial Services in the State legal cannabis industry.

They have implemented monthly newsletters for the member base and have been extremely active in response to the proposed federal legislation regarding banking and the cannabis industry.

Human Resources Committee (HRC)

The Committee’s vision is to provide best practices in all disciplines of Human Resources to NCIA members. They have worked on a couple of blogs this year around the recent reduction in force trend and will be releasing a few blogs providing some recommendations for how cannabis employers can navigate CV-19 when it comes to their workforces.

The HR Committee is working on a very exciting case study. They are looking forward to releasing the first few modules of it this summer!

Marketing & Advertising Committee (MAC)

The MAC coalesces the talents of 20 of the industry’s top-tier marketing and communications professionals around three focus areas: Education, Advertising Access and 2020 political goals. The committee uses their personal, professional and business skills and networks to help build a responsible, legal cannabis industry. The committee is producing best practices, webinars, workshops and social media campaigns to aggregate and generate support from NCIA members, the public, media, government and business leaders.

The MAC Education Subcommittee has focused its energies on developing a Speakers/Expert Directory with a goal to launch by year-end.

The 2020 Subcommittee has created its first infographic covering Oklahoma’s 2020 ballot initiatives; infographics for additional states with legalization initiatives on the ballot this year will follow soon.

The Advertising Access Subcommittee is adding more states (as they come online) to their overarching list of “Do’s and Don’ts” for compliant cannabis advertising. Those are pending editing and legal review and will be published on the NCIA website soon thereafter.

The committee is also working on upcoming webinars including “Advertising Best Practices.” 

Cannabis Manufacturing Committee (CMC)

The Cannabis Manufacturing Committee is focusing on reviewing existing business practices and state regulations of concentrates, topicals, vaporizers, and edibles ensuring the manufacturing sector is helping shape its destiny.

Their first informative blog using lessons learned from the e-cig sector exists in on-going discussions with NCIA’s Safe Vaping Task Force. 

They are also working on their second publication, “Facts About Current Good Manufacturing Practices (cGMPs) And Their Role In The Cannabis Industry” which will be a resource for essential businesses.

In addition to the work the CMC is carrying out, they are collaborating with other committees to help create an NCIA resource library.

The CMC Testing sub-committee is working on writing blogs about “Positives of Testing” (from the operator’s view), and “Nomenclature: Cannabis Nomenclature Register” for publication.

Retail Committee (RC)

Members of the Retail Committee attended NCIA’s Northeast Cannabis Business Conference in Boston in February 2020 to participate in an educational panel on Retail 101. The committee has an upcoming webinar in April: “Retail: Tips and Best Practices” which will include 4 panelists that are currently license holders or working in licensed dispensaries in 3 different states (CO, CA, WA), and will also address some tips and best practices for the current CV-19 climate.

Facilities Design Committee (FDC)

Committee member David Vaillancourt of The GMP Collective appeared on NCIA’s weekly podcast, NCIA’s Cannabis Industry Voice, in February 2020 to discuss GMPs (Good Manufacturing Practices) in an episode titled “Revolutionizing How Cannabis Producers Achieve Success.”

 

Member Blog: California Cultivators – Weigh In On Energy Efficiency Standards Now!

By Joe Sullivan, Technical Director at Cultivation Energy Optimization

The California Statewide Utility Codes and Standards Program is considering the addition of energy efficiency standards to its Title 24, Part 6 Building Code for Controlled Environment Horticulture (CEH) facilities.

Currently, there are no existing energy efficiency standards in Title 24, Part 6 for CEH facilities and the Statewide Codes and Standards Enhancement (CASE) Team is actively working to help code-setting bodies develop building energy codes that not only save electricity but are practical and cost-effective.

Right now, the CEH CASE Team is in the process of gathering data on the types of equipment that are commonly used in cultivation facilities.

California growers, the Statewide CASE Team needs your help!

Please take a few minutes to tell them what equipment you currently use by participating in a short 10-minute phone interview. Involvement from stakeholders is a critical part of the energy codes and standards development process. It is important to get direct input from California growers so proposed codes can achieve significant statewide energy savings without placing an unreasonable burden on you or the industry. This is the first time the Statewide CASE Team is analyzing CEH facilities and we would like California growers to be a part of this historic and monumental process.

Any information you share will be considered confidential and will not be shared outside the Statewide CASE Team. They understand privacy is important to growers and will not publish or share your name for any reason. 

If you would like to participate, please email joe@CultivateEO.com with the subject line ‘CA Grower Survey’ and include your first name, phone number and the best time to receive a call in the body of the email.

This program is funded, in part, by California utility customers and administered by Pacific Gas and Electric Company, Southern California Edison, Southern California Gas Company, San Diego Gas & Electric Company, Los Angeles Department of Water and, and Sacramento Municipal Utility District Power under the auspices of the California Public Utilities Commission. The Statewide CASE Team will provide the Energy Commission with the technical and cost-effectiveness information required to make informed judgments on proposed standards for promising energy efficiency design practices and technologies in controlled environment horticulture facilities. For more information about this process, visit: www.title24stakeholders.com.

Thank you for partnering with us to help build an efficient and sustainable horticulture industry in California!


Joe Sullivan is the technical director and co-founder of Cultivate Energy Optimization, an energy management firm that works exclusively with utilities and governments to design and implement energy management programs specifically for the controlled environment agriculture industry. CultivateEO currently administers programs for utilities across the U.S. and Canada, including the country’s first state sponsored cannabis energy management program in CO. Joe serves as the company’s national expert on indoor ag. and energy management technologies working closely with over 100 cultivators to develop and implement energy management strategies. Prior to forming CultivateEO, Joe worked for the USDA supporting their research on global climate change and its effect on field crops. Joe is a Certified Energy Auditor through the Association of Energy Engineers and hold a bachelor’s degree from the University of Illinois Urbana-Champaign in Natural Resource and Environmental Sciences.

Member Blog: Condensate Recapture for Cannabis Cultivation Facilities – Making Informed Decisions to Save Resources and Improve Efficiency

By Taylor Robinson – R&D Manager and Chief Chemist, Silver Bullet Water Treatment & Kyle Lisabeth – Director of Horticulture Business Development, Silver Bullet Water Treatment

Condensate capture for reuse is an intriguing new application within the controlled environment horticulture space. Addressing both environmental impacts and regulatory requirements, capturing and reusing condensate has many attractive benefits. However, several key questions have appeared surrounding the topic of condensate water capture and reuse applications that have slowed its adaptation in many facilities. In this article, we discuss common questions and concerns associated with condensate reuse and how each may be addressed with adequate, customized treatment processes.

Condensate water is generated by a number of processes within a controlled environment agriculture facility. Most commonly, dehumidification and HVAC systems are the primary sources of condensate water. The source of water and collection system plays a significant role in condensate water quality and associated concerns when considering reuse.

Why is collecting and reusing condensate water a good option?

  1. Recycling available water streams reduces the amount of fresh water required and offsets associated costs.
  2. Recycling minimizes discharges and waste. Coming regulations will require extensive discharge limits.
  3. With adequate monitoring and treatment, risks may be greatly reduced, maximizing benefit.

Contamination – Don’t Let One Bad Apple Ruin the Bunch

In general, condensate water is low in Total Dissolved Solids (TDS)/Conductivity and is generally very clean. pH is typically low as carbon dioxide readily absorbs into solution (pH 5.5-6.5 range). Contaminates are easily introduced based on what the water contacts during collection and distribution. Volatile Organic Compounds (VOCs) and other organics can be absorbed and provide “food” for microbial proliferation – especially if the condensate is pooled and stored for extended periods. Metals leaching from dehumidification equipment and/or from dust/air pollutants also may accumulate. Identifying and managing emerging contaminates is crucial to successfully mitigate risk and maximize value when reusing condensate water.  

Microbes and Organics

By themselves, most organics potentially found in condensate water pose little threat. However, organic (carbon-based) pesticides, foliar sprays, etc. have the potential to accumulate in exposed condensate water and could lead to downstream issues. Organics also provide a potential carbon source for various microbial populations to proliferate. This can create biosecurity challenges, plant disease and challenge existing water treatment processes. Microbes are ubiquitous in nature and although pathogens are presumed to make up less than 1% of the known microbial kingdom, contamination remains a threat. Airborne bacteria, viruses and fungal spores can be introduced to a condensate water system through its condenser plates. Microbial proliferation and the formation of biofilms on wetted surfaces downstream of dehumidification equipment can result in elevated levels of total and pathogenic microbes.

Heavy Metals

Heavy metals including lead, zinc, aluminum, and copper may be a concern if leaching from dehumidification equipment occurs. Soldered joints in copper tubing, for example, may introduce lead to condensate water. In that case, mechanical joints/brazed joints would be preferred. Aluminum, copper, and zinc may be stripped directly from metal surfaces as part of generalized corrosion. Even at relatively low levels, some metals, dissolved contaminates and other corrosion byproducts can bioaccumulate in plants resulting in compounded issues, including phytotoxic effects.

Water Treatment & Management

In many situations, the use of recaptured condensate water is a viable option to supplement make-up water demand and reduce waste discharge. Treatment prior to reuse is recommended to condition the condensate water to ensure water system stability over time and to prevent potential treatment and operational challenges that could otherwise arise. 

Available treatment processes include Advanced Oxidation Process (AOP) gas and UV for disinfection, adsorptive media for dissolved organics and various other filtration processes for metals and other contaminate removal. The extent and type of treatment varies based on specific water challenges and end goals. 

Baseline and routine subsequent water testing and monitoring is key to maintain a proactive approach to water management. Integrating smart water management programs limits waste, improves logistics, saves money, protects the environment and allows for current and emerging regulatory compliance. Equally important is choosing the right technical partner to help develop and implement your smart water management program.


Taylor Robinson is the Research & Development Manager and Chief Chemist for Silver Bullet Water Treatment with expertise in molecular and cell biology, general water chemistry, microbiology, and industrial (oil and gas) water treatment and reuse processes/chemistries. For the past 4 years, Taylor has led, conceptualized, organized, and completed numerous Silver Bullet research and development projects related to water treatment for the livestock, cooling water, horticulture, aquaculture and data center industries. Taylor joined Silver Bullet in 2016 and has been a key contributor to the advancements in the company’s technology and research base.

With over 15 years’ experience, Kyle Lisabeth has been focused on improving water management programs across multiple industries, with a central focus of treating water for reuse applications.  Kyle attended the University of Texas – Austin, and upon graduation with a BS in Biology and Environmental Sciences, gained years of international water management experience in both North and South America. Since establishing Silver Bullet’s Horticulture Division, Kyle has exponentially grown the business unit’s install base and cultivated a nationally known water treatment brand for many controlled environment agriculture applications, including cannabis.

Committee Blog: Working With Your Local Government as a Cannabis Cultivator

by NCIA’s State Regulations Committee

The regulated cannabis industry is inextricably linked to politics, and all politics is local — so when trying to open and operate a cannabis business, you’re almost sure to need to work with local government in some way. 

To help our members understand how to start these relationships right, the NCIA State Regulations Committee hosted a webinar on how to approach local government earlier this year. That focused on identifying your relevant local authorities, how to introduce yourself, and how to properly navigate those relationships. 

Once you’ve figured out who to talk to and have gotten in touch with them, they’ll often have questions about the cannabis industry, and there is plenty of good information you can proactively share as well. To help NCIA members inform their local governments about the wide range of issues surrounding our industry, we’ll be diving even deeper with a series of blog posts.

We’ll be starting this series where the whole cannabis supply chain begins: cultivation. Future posts will touch on processing, retail, and more. Even though states categorize their licenses differently, with some issuing stand-alone cultivation licenses and others combining cultivation with processing (or sometimes issuing vertically integrated licenses, with retail too), we’ll be focusing in on the various operations individually.

ECONOMIC IMPACT

When elected officials hear about a new business wanting to open in their town or city, their first question is usually, “how many jobs will it bring?” Mayors, city and town councils, departments of economic development, and other government entities are often laser-focused on building up the local economy, so explaining how your business will help them towards that goal is integral to moving your project forward.

Lucky for them, cannabis cultivation is a very labor-intensive endeavor, and you’ll likely be hiring dozens of people to staff your facility. If you’re an experienced operator who knows exactly how many people you need to hire and in what roles, let your local government know! They’ll be interested to see the range of responsibilities and necessary experience, from entry-level trimmers to mid-career managers to botanists with a Ph.D. If you’re still figuring out your exact staffing plan, providing a range of possibilities will help them understand the scale of your project. Be sure to avoid pie-in-the-sky estimates that you’ll never be able to reach — in the long run, it’s always better to under-promise and over-deliver than to make it seem like you were pulling a bait-and-switch. Also do not forget to include all the contract jobs created by constructing or retrofitting your facility.

Beyond the sheer number of hires you’ll be making, it’s important to talk about the compensation and benefits that you’ll be providing to your employees. If you’re starting everyone above the state’s minimum wage — or better yet, starting everyone at a living wage (generally thought to be at least $15/hour) — highlight that! If you’re providing health insurance or other benefits to your hourly employees, let them know! Elected officials like to see companies doing better than the bare minimum, and love to see companies that do even more.

Your physical facility will also have an economic impact on the community that’s worth talking about. If you’re buying your building, you’ll be paying property taxes, and you can let your elected officials know just how much you’ll be contributing to the tax base. Mayors and councilors always love to see unused space being occupied, so if you’re making use of a vacant or neglected building, be sure to let them know. This goes double if you’ll be making improvements to the building that increase its value (and triple if you’re using a local construction company to make those improvements).

Finally, consider whether you will be providing any additional revenue to the local government. While some state cannabis laws do allow for local taxes, these typically apply to retail rather than cultivation. Massachusetts and some other states also make heavy use of “community host agreements,” or CHAs, where a business commits a percentage of its revenues to the local government for a limited period of time. If either of these applies to you, be sure to provide elected officials with the relevant parts of state law, and the specifics you’re willing to offer. If you plan to financially support any charities, provide details — and if you’d like some guidance on what local charities are doing the most good, just ask, since most officials would be happy to tell you some of their favorites.

PUBLIC SAFETY

Elected officials also care about public safety, but usually follow the lead of their police chief and fire chief, for whom safety is their one and only priority. It’s good to proactively highlight the ways your facility will improve public safety — if you’re installing outdoor security cameras or floodlights, those can protect your neighbors as well as yourself, and there have been multiple cases where cameras on a cannabis business have helped solve an unrelated crime

It’s important to remember that police and fire chiefs are spread thin and need to know a little about a wide variety of topics. Unless there are already cannabis businesses in their town, they probably haven’t read the state security requirements to open a facility, so providing an overview of the state law can help demonstrate how tightly regulated you will be. Knowing that the state already has rules for waste disposal, product storage, and controlled access areas can alleviate many of their initial concerns.

Once you’ve explained the security features of your building and run through the state requirements for cannabis businesses, you should address any lingering fears or questions that they may have. Two of the most common concerns are the safety of employees while transporting product or cash, and the risk of your building being targeted by burglars looking to steal product.

Regarding employee safety, explain how you will be shipping product to processors or dispensaries. Are you delivering it, are they picking it up, or are you using a third-party transporter? If you are transporting product yourself, explain both the state requirements and your own operating procedures, from GPS tracking to using two employees for each delivery.

You should also go into detail about your banking relationships. Many people outside the industry assume that it’s 100% cash, but if you’re part of the large majority of cannabis businesses with bank accounts, let your local officials know, especially the police chief. They will be much more comfortable if they know your customers will be wiring payments directly to your bank, rather than dropping off duffle bags full of cash at your facility.

Regarding burglary, be sure to re-emphasize your security measures, from cameras and fencing to access control and alarms. Explaining the cannabis life cycle may also be helpful — since plants are not useable products for most of their life, they’re poor targets for theft. This means that cultivation facilities are not prime targets for burglars, but in the rare cases that they are targeted, you can point to examples where cameras have led to burglars’ arrests.

COMMUNITY IMPACT

While economics and public safety are almost always the top two concerns of local governments, they may also be worried about other impacts on the community and how your business will affect residents’ quality of life. Common questions include whether your facility will emit any odor, and if it will increase traffic in the area.

Cannabis is famous for its strong odor, so it’s understandable that people would ask about it. Whether your state requires it or not, it’s advisable to use charcoal scrubbers or other odor mitigation technology to prevent your plants’ odor from escaping the building. Knowing that you’re taking steps to address this concern will help elected officials feel comfortable welcoming you into their community, especially if it’s in a densely populated area.

Traffic concerns may arise, especially if there are recent news stories about mile-long lines at dispensary grand openings. You can address this easily by explaining how cannabis cultivation facilities are not accessible to the public, and the main people coming to your building will be employees and inspectors, not customers.

When built and operated properly, cannabis cultivation facilities should be virtually indistinguishable from any other commercial warehouse. Unless you have very explicit signage (which we do not recommend), most people driving or walking by will not even know that you’re a cannabis business. 

GOING FURTHER

Even after you have addressed all of your local government’s concerns, there will probably be even more questions — and that’s okay! This is a great opportunity to keep the dialogue open. Be sure to stay up to date on state laws and regulations so that you can serve as a resource for local officials. Because they’re spread so thin, they will appreciate having someone like you as a go-to when they have questions about cannabis politics or the industry. 

If you’re able to offer tours of your facility, that’s a great way to build relationships with your local officials while educating them about your business and the cannabis industry as a whole. They may also appreciate invitations to events hosted by state cannabis regulators, or local industry conferences where they can get broader exposure to the cannabis world.

And of course, it’s important to be a good member of your community. Whether it’s participating in local projects, supporting local organizations, or organizing your own trash clean-ups or other events, staying active and visible will help the community know that they can count on you being a good neighbor.

Be sure to stay tuned for future installments in this series, where we will be addressing other cannabis license types. Our next blog will focus on processors.

Member Blog: Sustainable, Indoor-Grown Cannabis Starts with LEDs

By Andrew Myers, President & CEO of ProGrowTech

Despite cannabis’s down-to-earth appeal, it hasn’t been as friendly to the earth as one might assume. But cannabis growers have always been resourceful, and with recent developments in technology and improved growing methods – including full-spectrum LED grow lights – the cannabis industry is becoming increasingly sustainable. The end results? A healthier environment, better products and a notable cost reduction. It’s a win-win-win.

Cannabis’s Carbon-Intensive Past

Between staggering electricity usage, a ballooning carbon footprint, a habitually gratuitous use of pesticides and toxic runoff decimating local ecosystems, the cannabis industry hasn’t been the best steward of the environment. As more states pass adult-use and medical laws across the country, this seemingly blameless plant has come under scrutiny from environmentalists, consumers and policy-makers alike. 

Evan Mills, Ph.D., is regarded as one of the leading minds in cannabis industry sustainability issues. A California-based energy and climate change scientist, he authored a landmark and frequently cited report in 2012, “The carbon footprint of indoor Cannabis production,” highlighting the cannabis industry’s not-so-green track record. The report devotes a few hefty paragraphs to indoor lighting needs at cultivation sites. Primary takeaways include: 

  • Indoor cannabis production requires lighting levels 500-times greater than that recommended for reading. 
  • Cultivation sites power densities are measured at 200 W/m2, on par with modern datacenters. 
  • Grow facilities nationwide consume the same amount of electricity as two million average American homes. 
  • A single cannabis cigarette, according to Mills’ calculations, is equivalent to 3 pounds of carbon dioxide emissions.

The data is clear: without adjusting equipment and techniques, the cannabis industry was on track to becoming one of the largest carbon emitters in the world. And amidst growing calls for improved business transparency and environmentally conscious methods (that have only gotten louder in recent years), cannabis businesses were desperate for solutions that matched performance with sustainability. 

The LEDs of Today

Many outdated lighting technologies like HPS and fluorescents consume exorbitant amounts of energy for sub-par output, run hot (and therefore place additional pressure on environmental controls like HVAC and AC) and tend to burn out quickly. These technologies can leave many growers wondering if it’s worth the trouble – and encourage them to make the switch to LEDs.

While LEDs have certainly been around for a while, they’ve gained traction among cannabis growers more recently. At one time, large installations of LEDs needed at commercial grow operations were highly cost prohibitive, only allowing the biggest enterprises to reap the benefits. But, over time, LEDs have become increasingly affordable and accessible to smaller businesses, start-ups and hobbyists. Moreover, the technology has improved drastically. 

Today’s cutting-edge LED grow lights come with built-in features leading to better performance paired with lower costs and emissions for the modern grower.

  • Unparalleled Efficacy and Efficiency
    LED grow lights today are able to deliver unmatched uniformity, ensuring every plant in your canopy receives adequate photosynthetically active radiation. They also use less energy while delivering plenty of brightness – meaning you’ll cut electricity costs and emissions without seeing a dip in performance.
     
  • Full-Spectrum Light and Spectral Tuning
    Wish you could bring the sun indoors? Invest in LEDs – they’re the closest thing to sunlight you can find because they deliver full-spectrum light. Your plants can benefit from the full range of spectrum as they would in their natural environment. Further, features like spectral tuning give cultivators ultimate control, allowing them to elicit certain biological responses, hasten flowering and shorten the growing cycle altogether.
     
  • Vertical Racking
    This capability, made available with some modern LEDs, can double or even triple your harvests without investing in additional square footage. Vertical racking allows growers to use their spaces in the most efficient way possible, resulting in verdant, multi-level gardens.
     
  • Automation
    Automating light cycles, watering and even nutrient distribution can cut down on labor-intensive tasks and human error that can result in additional, unnecessary energy usage. By pre-programming the necessary functions of your grow, growers are given peace-of-mind and can focus on other important tasks that require more of a human touch.
     
  • Low Heat Profile and On-Board Dimming
    A huge selling point for growers of all kinds, LEDs have a much lower heat profile than other lighting technologies. They present less of a risk for heat stress, reduce reliance on other environmental controls and can be placed much closer to the plant canopy (a plus when vertical racking!). On-board dimming is a helpful feature as well: growers can create an artificial sunrise and sunset to gently ease their plants into light-dark cycles and prevent spikes in both temperature and humidity.
     
  • Improved Durability
    LEDs are built to last, another selling point for environmentally conscious cultivators looking to cut down on waste. If you’re in the market for some new efficient grow lights, look for LEDs that are built with industrial-grade materials and come with the IP66 or IP65 waterproofing certification. 

 

Looking Toward a Bright, Green Future

Cannabis has become a regular facet of countless American lives. It helps people relax and de-stress, mitigate crippling pain and calm seizures. In 2018, the Pew Research Center reported that 62% of Americans are in favor of legalizing cannabis. The once-villainized plant, long at the center of fear-mongering campaigns like reefer madness and gateway drugs, is now widely enjoyed by everyone from politicians to grandparents to entrepreneurs to professional athletes. It’s not going anywhere any time soon. 

That means that cannabis industry professionals have a responsibility to produce cannabis with sustainable methods – and LEDs are a great place to start. Not only do LEDs help shrink your business’s carbon footprint, they can also save you money in the long run and boost profits. There are countless growers today who prefer using LEDs, and it’s pretty easy to understand why.


Andrew Myers is President and CEO of ProGrowTech, which helps commercial horticulture operations increase profitability, yield and energy efficiency with industry-leading LED lighting systems. For more information, visit progrowtech.com

 

 

 

 

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