by Michelle Rutter, Government Relations Coordinator
In the first week of June, the cannabis industry was celebrating its victories in the House of Representatives. At the end of last week, we were celebrating a victory in the US Senate, too.
At the beginning of the month, the U.S. House of Representatives debated the Commerce, Justice, and Science (CJS) Appropriations bill (HR 2578), which funds applicable government agencies for the upcoming FY2016. This year, there were four cannabis-related amendments under consideration in the House: the Rohrabacher-Farr medical marijuana amendment, the McClintock-Polis adult-use marijuana amendment, the Bonamici-Massie industrial hemp amendment, and the Perry CBD oil amendment. You can read about the results of the House votes in this NCIA blog post.
On June 11, two cannabis-related amendments were brought before the Senate Appropriations Committee. Cannabis champion Sen. Barbara Mikulski (D-MD) offered a medical cannabis amendment, which would ban the Department of Justice from interfering with state-compliant medical cannabis businesses. In addition, Sen. Jon Tester (D-MT) offered a hemp amendment that would protect state industrial hemp laws from the Department of Justice’s interference. These amendments are the Senate companions to the House’s Rohrabacher-Farr and Bonamici-Massie amendments, respectively.
The Senate Appropriations Committee voted with Sen. Mikulski to protect state medical marijuana laws 21-9. Senator Jerry Moran (R-KS) changed his original ‘No’ vote to a ‘Yes’, while presidential contender and Senator Lindsey Graham (R-SC) also attempted to change his ‘No’ vote to a ‘Yes’, but was too late. Sen. Tester’s industrial hemp amendment also passed through the committee via voice-vote.
Victory is sweet, but it’s important to remember that these appropriations amendments only protect states’ medical cannabis and hemp laws for the upcoming fiscal year. As encouraging as the appropriations season has been, it is still imperative that we pass comprehensive cannabis banking and 280E reform bills in order to be treated like every other American business.
Below is the detailed vote breakdown from the Senate committee’s vote on the Mikulski amendment:
Republicans
Democrats
Thad Cochran (R-MS): No
Barbara Mikulski (D-MD): Yes
Mitch McConnell (R-KY): No
Patrick Leahy (D-VT): Yes
Richard Shelby (R-AL): No
Patty Murray (D-WA): Yes
Lamar Alexander (R-TN): Yes
Dianne Feinstein (D-CA): No
Susan Collins (R-ME): Yes
Richard Durbin (D-IL): Yes
Lisa Murkowski (R-AK): Yes
Jack Reed (D-RI): Yes
Lindsey Graham (R-SC): No
Jon Tester (D-MT): Yes
Mark Kirk (R-IL): No
Tom Udall (D-NM): Yes
Roy Blunt (R-MO): Yes
Jean Shaheen (D-NH): Yes
Jerry Moran (R-KS): Yes
Jeff Merkley (D-OR): Yes
John Hoven (R-ND): No
Chris Coons (D-DE): Yes
John Boozman (R-AR): No
Brian Schatz (D-HI): Yes
Shelley Moore Capito (R-WV): Yes
Tammy Baldwin (D-WI): Yes
Bill Cassidy (R-LA): Yes
Chris Murphy (D-CT): Yes
James Lankford (R-OK): No
Steve Daines (R-MT): Yes
CANNABIS MILESTONE: CONGRESS VOTES IN FAVOR OF THE ROHRABACHER-FARR AMENDMENT
by Michelle Rutter, NCIA Government Relations Coordinator
This week was a milestone in the cannabis industry.
On Wednesday, the U.S. House of Representatives debated the Commerce, Justice, and Science (CJS) Appropriations bill (HR 2578), which funds applicable government agencies for the upcoming FY2016. This year, there were four cannabis-related amendments under consideration: the Rohrabacher-Farr medical marijuana amendment, the McClintock-Polis adult-use marijuana amendment, the Bonamici-Massie industrial hemp amendment, and the Perry CBD oil amendment. The results signaled a clear victory for the cannabis industry.
Rohrabacher-Farr
For the second year in a row, Congress voted in favor of the Rohrabacher-Farr medical cannabis amendment. This amendment, introduced by Reps. Dana Rohrabacher (R-CA) and Sam Farr (D-CA), bans the Department of Justice from spending money to prevent the implementation of state-level medical cannabis programs, in addition to removing funding for federal medical cannabis raids, arrests and prosecutions in states where medical cannabis is legal. The vote count increased from 219-189 in 2014, to 242-186 this year, with 67 Republicans voting ‘Yes.’
McClintock-Polis
For the first time ever, the McClintock-Polis amendment was offered on the House floor. This amendment, introduced by Reps. Tom McClintock (R-CA) and Jared Polis (D-CO), is similar to the Rohrabacher-Farr amendment, but would have extended the same protections from the Department of Justice to non-medical retail marijuana businesses and consumers in states where adult-use sales have been legalized. The measure narrowly failed, 206-222, with more than 40 Republicans in support.
Bonamici-Massie
This amendment, officially named the Bonamici-Massie-Blumenauer-Polis amendment, blocks federal tax dollars from being used to prevent states from allowing the use, distribution, possession, or cultivation of industrial hemp. A member of the cannabis family, hemp is a valuable agricultural commodity that can be found in more than 25,000 commercial products including food, paper, beauty products, and more. The measure passed overwhelmingly, 282-146, with 101 Republicans voting in favor.
Perry
Rep. Scott Perry (R-PA) proposed an amendment to the CJS bill that would protect state laws that allow the use of CBD oils, but still leaves most medical marijuana patients and their providers vulnerable to federal arrest and prosecution. The measure was overwhelmingly passed by a margin of 297-130.
Just a few years ago, pro-cannabis amendments passing Congress was something that those involved in the industry could only dream of. Now, we’re just 16 votes shy of limiting the Department of Justice’s interference with any state-sanctioned marijuana business (McClintock-Polis). Though Congress moves at a notoriously glacial pace, these amendments shed light on politicians’ evolving stances on cannabis policy. These votes prove that NCIA, and all of our members, are slowly but surely convincing Congress that the cannabis industry is to be taken seriously.
Cannabis Milestone: Congress votes in favor of the Rohrabacher-Farr amendment
by Michelle Rutter, NCIA Government Relations Coordinator
This week was a milestone in the cannabis industry.
On Wednesday, the U.S. House of Representatives debated the Commerce, Justice, and Science (CJS) Appropriations bill (HR 2578), which funds applicable government agencies for the upcoming FY2016. This year, there were four cannabis-related amendments under consideration: the Rohrabacher-Farr medical marijuana amendment, the McClintock-Polis adult-use marijuana amendment, the Bonamici-Massie industrial hemp amendment, and the Perry CBD oil amendment. The results signaled a clear victory for the cannabis industry.
Rohrabacher-Farr
For the second year in a row, Congress voted in favor of the Rohrabacher-Farr medical cannabis amendment. This amendment, introduced by Reps. Dana Rohrabacher (R-CA) and Sam Farr (D-CA), bans the Department of Justice from spending money to prevent the implementation of state-level medical cannabis programs, in addition to removing funding for federal medical cannabis raids, arrests and prosecutions in states where medical cannabis is legal. The vote count increased from 219-189 in 2014, to 242-186 this year, with 67 Republicans voting ‘Yes.’
McClintock-Polis
For the first time ever, the McClintock-Polis amendment was offered on the House floor. This amendment, introduced by Reps. Tom McClintock (R-CA) and Jared Polis (D-CO), is similar to the Rohrabacher-Farr amendment, but would have extended the same protections from the Department of Justice to non-medical retail marijuana businesses and consumers in states where adult-use sales have been legalized. The measure narrowly failed, 206-222, with more than 40 Republicans in support.
Bonamici-Massie
This amendment, officially named the Bonamici-Massie-Blumenauer-Polis amendment, blocks federal tax dollars from being used to prevent states from allowing the use, distribution, possession, or cultivation of industrial hemp. A member of the cannabis family, hemp is a valuable agricultural commodity that can be found in more than 25,000 commercial products including food, paper, beauty products, and more. The measure passed overwhelmingly, 282-146, with 101 Republicans voting in favor.
Perry
Rep. Scott Perry (R-PA) proposed an amendment to the CJS bill that would protect state laws that allow the use of CBD oils, but still leaves most medical marijuana patients and their providers vulnerable to federal arrest and prosecution. The measure was overwhelmingly passed by a margin of 297-130.
Just a few years ago, pro-cannabis amendments passing Congress was something that those involved in the industry could only dream of. Now, we’re just 16 votes shy of limiting the Department of Justice’s interference with any state-sanctioned marijuana business (McClintock-Polis). Though Congress moves at a notoriously glacial pace, these amendments shed light on politicians’ evolving stances on cannabis policy. These votes prove that NCIA, and all of our members, are slowly but surely convincing Congress that the cannabis industry is to be taken seriously.
Guest Post: Marijuana Millions – The Road Map to Your Success, Part 1
At Maya Media Collective, we believe that the key to marijuana millions begins with knowing who you are and why you are unique, and then using this discovery to build your company’s brand and overall strategy for success.
The first step is to define your Unique Selling Proposition.
Your Unique Selling Proposition (USP) is a marketing concept that is the foundation of your business and your brand. If the word “selling” turns you off, you can think of it as your Unique Market Proposition, or to make it more fun, your Unique Awesomeness.
Regardless of what you call it, it is imperative that you define it early on in your business.
Think of your USP as your reason for being.
Your USP is literally that which you propose to sell to your market that is unique from your competition. From the customer’s perspective it is the answer to the question, “Why should I do business with you?”
The USP should always come before your elevator speech and before your branding.
In fact, it is the driving force behind your branding, your niche, and your elevator speech.
Deciding on a USP Is One of the Most Important Decisions You Can Make About Your Business.
If you make your business stand apart from the crowd, everything you do will be easier. Customers will be easier to come by and they will happily spread the word about what you do because they love it.
On the other hand, if you don’t develop an effective USP, building an audience or getting any customers to pay attention to you will be a constant struggle.
How to Find Your Unique Selling Proposition
In order to find your USP, you must be willing to tap into your creativity and passions.
However, all the soul-searching in the world will not help you find your USP if you’re not willing to put your ideal customer first. At the end of the day, your USP is all about your ideal customer, and not about you at all.
In order to do this correctly, you must be willing to get out of your own way, start thinking about your perfect customer, and learn everything you can about him or her so you can target your approach to meet his or her needs.
Imagine your perfect customer and what would make them eager and excited to do business with you and spend their hard-earned dollars on your products and services.
Speaking of your products…
If you are a grower or processor in any of the western states such as Oregon, amazing products are NOT a USP. States like Oregon, Washington, California, and Colorado have had medical programs and access to seriously strong “high-grade” medicine for over a decade.
In places such as these, having the best product isn’t unique, it’s MANDATORY. Honestly, if you have anything less than the best, your business won’t make it through its first week of operation.
Remember, competition is fierce and you need more than the best product to be unique.
Instead of banking on your amazing product as your ticket to marijuana millions, think of becoming the best at something no one else is attempting.
You want to be able to confidently say, “Hey, at XYZ Company we’re all about X. We do things differently. If you’re into X come see us, we’re the only place where you can get it.”
Remember, You’re Not Trying To Appeal to Everyone
It’s easy to feel like you’ll be leaving out some potential customers when you start to narrowly define your USP. It’s a natural tendency to want to please everyone. Unfortunately in business when you try to please everyone, you generally wind up pleasing no one. When you connect more strongly with a particular audience, your influence can spread more quickly.
Be Unique, But Not For Its Own Sake
Being unique is an important marketing strategy, but beware of being unique for its own sake. Avoid the urge to come up with some catchy and unique just because it seems cool rather than because it’s something that the market truly wants.
Your USP only works when you’re addressing a specific market need. And it requires clarity. If your USP takes someone minutes or hours to understand, it probably won’t be effective.
Once You Have Developed Your USP…
Your job is to communicate it clearly and often.
A great business name, strong tagline, and professional design will bind everything together and put you on the path to marijuana millions.
Alexa Divett is the Co-Founder and Marketing Director of Maya Media Collective (http://www.mayamc.com), a Portland, Oregon-based marketing and design firm that provides brand identity packages, marketing strategies and business coaching to marijuana business owners and entrepreneurs. Maya Media Collective has been a member of NCIA since January 2014. With over 14 years of experience in marketing, public relations and coaching, Alexa helps cannabusiness owners earn marijuana millions while uplifting the cannabis industry.
Guest Post: Top 6 Reasons to Hire a Dedicated Cannabis Marketing Agency for Your Business
In this new and competitive multi-million dollar industry, the benefits of hiring a full-service cannabis marketing agency are many. Here are a few of the highlights that translate into higher performance and better visibility for your cannabis business.
The People
1. Time Is Money
It’s a numbers game, and the numbers work in your favor. A single marketing person in-house will have a longer turnaround time than a dedicated team from a top cannabis marketing agency sharing the work. Instead of hiring your own staff, contracting with an agency to communicate with a single member of your team makes it possible for all marketing to be completed swiftly and cohesively. If you have a marketing director, he or she can work directly with the agency to direct services such as event marketing or custom design work to further enhance your business.
2. Resourceful Talent and Talented Resources
With a full-service cannabis agency, you are able to choose the services tailored to your needs. You avoid the hassle of piecing together services from different providers, hoping they will all be on the same page to meet your vision. A dedicated agency will have a team of talented people at your disposal. Their diverse skill-sets will assist you with strategy, design, market research, search-engine optimization (SEO), social media, and more. If you’re looking to re-brand your business or simply want a print advertisement for Culture Magazine, the agency’s mission is to increase your return on investment and help your bottom line, and they will use their considerable resources to do it.
The Market
3. A Personal Ambassador for Media Buying and Cannabis Publications
A cannabis marketing agency worthy of its designation has invested in building relationships with both cannabis-specific and traditional trade publications. As such, they possess the ability to negotiate with sales representatives at various publications and leverage your media advertising buys. A dedicated marketing agency also has access to all of the latest publications’ media kits. By studying these, they can prime your marketing strategy and provide upcoming editorial and advertising trend forecasts.
4. The Power of Connection
A cannabis-savvy marketing agency has spent time and resources networking with journalists proficient in the industry, and thus they know which journalists can best pitch your brand and convey your specific message. By virtue of the constant networking involved, a cannabis marketing agency is also highly in-tune with consumer trends, and you reap the benefits of these connections.
The Laws
5. Dedication to Their Bread and Butter
By necessity, the cannabis-specific marketing agency possesses a thorough understanding of this unique marketplace. They are plugged into the wider community and are aware of current news and events, maximizing their ability to promote your brand at any given opportunity. As a member of the cannabis industry, the marketing agency is invested in the image, longevity, and future of the marketplace, and they will be highly motivated to portray your brand in the best possible light. If they’re committed to serving the cannabis industry, they should be members of the National Cannabis Industry Association (NCIA), the only industry-led organization created to serve and protect the interests of those in the business. Through banding together with other like-minded businesses, your cannabis marketing agency can be a powerful ally, helping to fund education and PR campaigns to evolve the image of cannabis-related industries and to promote friendlier laws.
6. The Law and Lay of the Land
Regulations and laws regarding cannabis are constantly changing, and it’s imperative to work with a marketing agency fluent in the ever-changing landscape of marijuana legalese. Marketing, advertising, and packaging all have their rules (for instance, marijuana edible packaging) and ignorance is no defense in the eyes of the law. A truly knowledgeable and dedicated cannabis marketing agency can be your trusted guide through the minefield of political and legal jargon and help you stay in compliance with the most current laws.
Studio 420 became a Sponsoring Member of NCIA in April 2015, and is a leading Denver-based digital marketing agency specializing in promoting high-profile marijuana retailers, dispensaries and cannabis-related products. They have experience in providing company and product branding services, website design and development, e-commerce and online shopping, as well as digital marketing strategies.
Member Spotlight: Pioneer Nuggets
NCIA’s Member Spotlight for the month of May takes us up to Arlington, Washington, to speak with Fitz Couhig, CEO of Pioneer Nuggets, an indoor craft agriculture company that supports the adult retail consumer industry for cannabis in Washington State.
Cannabis Industry Sector:
Cannabis Cultivation
NCIA Member Since:
2014
How do you uniquely serve the cannabis industry?
We focus on the core competency of making a quality flower product for consumers. Focusing on a core competency and providing effective just-in-time inventory services are setting us apart. Our assembly-line work flow and perpetual production that supports our made-to-order inventory management system are unique as well.
Why should customers buy cannabis grown by Pioneer Nuggets?
Black Haze cannabis strain, grown by Pioneer Production and Processing, LLC
We serve consumers over the age of 21 that enjoy cannabis and visit an adult-use (+21) retail shop in the State of Washington. Adults should go with Pioneer Nuggets because they enjoy cannabis that is smooth and high in flavor profiles.
Can you give us some insight into the cannabis community in Washington, the challenges, upsides, and where you’d like to see it go?
The most unique challenge is being a wholesaler. No other taxed and traded system involves wholesaling and distribution, and we are required to do it without the help of any other organization. Serving retailers is what we do. We would like to see the industry move in the direction that allows retailers, processors, and producers to all thrive. We need tax reform and we need to be treated like normal businesses.
The Pioneer Nuggets team, based in Arlington, WA
How many employees do you have and how many customers do you serve?
We have 18 full-time employees and serve around 25 licensed retailers. It takes a lot of great people to continually make sensational products and provide excellent customer service.
Why did you join NCIA?
We joined NCIA for two reasons. One, the organization structure is well designed to develop a quality trade association for the cannabis industry we are a part of. Two, the team of people responsible for the NCIA and supporting its efforts and mission. We believe NCIA will succeed in creating the standards and forums industry professionals need, that our employees need, and that our organization needs.
Survey: Work and Well-Being in the Cannabis Industry – Participate by May 31
We need your help!
Researchers at Colorado State University are seeking participants in a confidential survey about work and well-being in the cannabis industry. If you work at a direct-to-plant organization in Colorado, you are eligible to participate! (e.g., budtenders, managers, grow facility workers, cannabinoid extractions, edibles manufacturing, etc.). All who participate will receive a $20 Amazon gift card as a ‘thank you’ for your time and efforts. The survey is completely confidential, and the results of the survey will be used to develop reports and training recommendations for the industry. Click below if you’d like to participate!
The researchers need as many responses as possible by May 31st, so please share this with anyone you know who is eligible to take the survey! This could be co-workers, friends, supervisors, subordinates, etc. Even if you’ve already completed our survey or if you aren’t eligible to take the survey, please share this information with people who might be.
NOTE: While we recognize the importance of health, safety, and well-being on a global scale (i.e., among industries and workers in other states and countries), we are focused only on Colorado in this study in order to have confidence in how we interpret the data – if we included other states and industries, there would be too much “noise” in the data to really know what we were seeing, given that this study is the first of its kind. Ideally, we will be able to conduct future projects that can examine and answer these questions in other industries as well.
Member Spotlight: A Therapeutic Alternative
For April’s Member Spotlight, we spoke with Kimberly Cargile, CEO of A Therapeutic Alternative, based in Sacramento, California. Kimberly and her team have a deep commitment to patient education and being active in shaping the future of medical cannabis.
Cannabis Industry Sector:
Medical Cannabis Providers
NCIA Member Since:
2013
How do you uniquely serve the cannabis industry?
A Therapeutic Alternative’s patient-centered dispensary provides a variety of alternative healing therapies and lab-tested medicinal cannabis products to patients. Our patients have access to a range of complementary services, including yoga, Reiki, sound therapy, meditation, cranial sacral therapy, support groups, massage therapy, and acupressure. A Therapeutic Alternative is unique among dispensaries in California because we offer a holistic approach to treatment. We want to see patients heal, and we are dedicated to providing patients with natural therapies to use on their individual journeys. Lab testing medical cannabis is not required in California; however, we test all products with a third-party lab to ensure quality control. Products are tested for contaminants such as mold, mildew, bugs, pesticides, and solvents prior to being provided at A Therapeutic Alternative. We also test for the products’ cannabinoid percentages. This is very helpful to patients when they decide which strain to use. Because each cannabinoid produces differing pharmacological effects on the body, a product’s cannabinoid profile is extremely important.
Why should patients looking for medical cannabis services go to A Therapeutic Alternative?
A Therapeutic Alternative offers yoga, massage, Reiki, acupressure, and more.
A Therapeutic Alternative is a City of Sacramento permitted and regulated dispensary located in the medical district of Midtown. We are close to three major hospitals, the cancer center, doctors’ offices, and laboratories. We offer patients with immediate and long-term needs access to high quality service and products. Our outstanding service is due to the fact that we have hired a knowledgeable, experienced, and educated team. Together our team provides patients with support through diagnosis and treatment. A Therapeutic Alternative supplies a large variety of strains with varying cannabinoid profiles to cover a wide range of symptoms. We provide dried herbs, tinctures, topicals, edibles, capsules, concentrates, clones, and seeds. Our staff spends the time necessary with each patient to tailor a treatment plan for each individual.
Can you give us some insight into the medical cannabis community in Sacramento, where it’s been and where it’s headed?
It has taken a long time to make progress in Sacramento; however, the progress is great in respect to the rest of the state. The City of Sacramento’s staff, local patients, and advocates worked together to create a local ordinance regulating medical cannabis dispensaries. That process took about two years, starting in 2008 and finishing with a City Council vote in 2010. This allowed all 30 dispensaries to stay open and continue to operate through a stringent permitting process. A Therapeutic Alternative was the 5th dispensary in Sacramento to receive our final permit, a process that took nearly five years. There is a long road behind us and a long road ahead of us as we face state regulation legislation and adult-use or recreational use legalization initiatives in the next few years. Because we are operating in the capital of California, A Therapeutic Alternative has had a unique chance to have an impact on state legislation. We have given many tours to entities including state representatives, the Police Chiefs Association, California League of Cities and Counties, and the Board of Equalization. It is our goal to use our place in the capital to spread education about our industry’s and our patients’ needs.
Why did you join the team at A Therapeutic Alternative?
Kimberly Cargile, CEO of A Therapeutic Alternative
I have been working in the medical cannabis industry in California since 2003. When I graduated from Humboldt State University in 2006, I moved to Sacramento and took on my first job as the general manager at one of California’s first dispensaries, Capitol Wellness Collective. In 2007, I had an opportunity to work behind the camera interviewing medical cannabis patients for a documentary about the need for dispensaries. During that special time I spent with those patients, I realized that I had a responsibility to stand up and speak up for those who were too sick or too scared to do so for themselves. So, I decided to start volunteering for Americans for Safe Access and began organizing patients for City Council meetings, County Board of Supervisor meetings, Planning Commission meetings, State Senate and Assembly meetings, protests, and signature drives. In 2009, A Therapeutic Alternative opened up close to my house, and I joined the collective. Shortly thereafter I took on a consulting position to help the founders learn the ins and outs of managing a medical cannabis dispensary. I also started a yoga program at A Therapeutic Alternative for cancer patients, which I still teach to this day. In 2012, the founders asked me to join the board and take on a more active role in the dispensary. I am currently the CEO of A Therapeutic Alternative and enjoy my position managing the daily operations. Whenever I get stressed out or frustrated by the office work and politics, I go downstairs and spend time helping the patients. Talking with patients helps me to remember why I am doing it all and makes me thankful that I have the courage to help them access safe medical cannabis.
Why did you join NCIA?
When Aaron Smith told me he was going to fulfill the needs of our emerging industry by providing us with the National Cannabis Industry Association, I was thrilled. As we make progress throughout the nation, we need communication and education on multiple levels. We need it within our industry, between businesses, in order to set high standards and best operating practices. We also need it outside our industry with government, in order to make good laws protecting cannabis businesses and patients. The National Cannabis Industry Association does just that.
Nominations Open for NCIA Board of Directors Election
The National Cannabis Industry Association’s annual board election begins April 27. As the only national trade association for the cannabis industry, NCIA prides itself on the democratic system it employs to select the Board of Directors who are tasked with overseeing the organization’s budget and strategic plan as well as acting as ambassadors for the association. Board members also support NCIA and the NCIA-PAC through financial contributions and member recruitment.
Any current Sustaining NCIA member may run for a seat on the board with the nomination of any other member. Nominations for board candidates are being accepted through this online form until 11:59 p.m. Eastern Time on April 17.
NCIA’s Board of Directors is made up of 20 elected positions and the executive director, who reports to the entire board. Elected members serve two-year terms and elections are staggered with 11 of the 20 seats open this year. A list of current board members is available online.
The online ballot will open to members from Monday, April 27 until 11:59 p.m. Eastern Time on Friday, May 16. NCIA utilizes a weighted voting system. Each member business can cast one vote. That vote is then weighted according to membership status. A Sponsoring member’s vote carries twice the weight of a basic member’s vote and a Sustaining member is weighted at five times that of a basic member.
If you are not yet a member of your industry’s trade association but want to participate in the election as either a voter or candidate, contact NCIA’s Bethany Moore at bethany@thecannabisindustry.org or (888) 683-5650, ext. 17. We are also happy to answer any questions you have about the election or upgrade your membership so your vote will carry more influence.
More information about the board election, including a voter guide with candidate information, will be made available to our membership by e-mail in the weeks ahead.
Guest Post: Best Practices for Interviewing Candidates in the Cannabis Industry
As our industry continues to grow and develop, it is important that we make sure that our human resource practices are in line with that of other established industries. This includes the recruiting and hiring of employees…the most critical part of this process being the interview. Here are a few things to keep in mind when interviewing potential candidates for your cannabusiness:
1. Set the tone and boundaries of the interview from the beginning
If you set expectations from the beginning of the interview that you will only be discussing the individual’s work experience and how this qualifies them for the role, you set a tone that will hopefully avoid any disclosure of information that could put the organization at risk. What makes interviewing candidates in this industry more difficult than others is that many have a very personal relationship with the plant and launch into telling you the story about this relationship if you don’t initially set the tone. Why this could end up being difficult for employers is that the information a candidate may want to volunteer could potentially put you at risk. Hiring decisions should be based on an individual’s qualifications for the job and culture fit for the organization.
For example, if an individual begins to address a health condition as a reason for their interest in the industry, this could put you in a challenging position. If for some reason an interviewing candidate discloses a health condition during the interview process, divert the topic immediately and move on to something else. You will also want to keep this information to yourself so other interviewers are not biased to make a hiring decision based on this information. Again, hiring decisions should be based entirely on a person’s ability to do the job and their culture fit for the organization. Ask questions that allow them to shine, while still getting to the heart of the matter regarding their experience, skills, and temperament to assess whether or not they would be a good match for your organization.
The EEOC (Equal Employment Opportunity Commission) is the division of the U.S. government that enforces violations of discrimination. They ensure that job applicants and employees are not being discriminated against on the basis of race, color, religion, sex, national origin, age, disability, or genetic information. Be mindful of the kinds of questions you ask so you don’t expose your company to accusations of unlawful discrimination.
2. Train your interviewers
Interviewing is not something that comes naturally to everyone. In order to make sure you are interviewing potential candidates appropriately, train your interviewers! If you are less than confident that you’re observing best practices, an experienced HR or staffing professional should be able to bring you and your fellow hiring managers up to speed.
3. Be careful when requiring ‘tests’
Many of you might want to administer ‘tests’ to employees as a way to determine their qualifications. While this may seem like an easy way to weed through the good and bad candidates, you must be cautious using this approach. Make sure your tests are relevant to the job in question to help shield your company from charges of discrimination. In addition, not all companies offering testing services are created equal. Make sure you do your research and ask questions around the potential liability of using their testing services.
4. Provide a great candidate experience
Kara Bradford, Chief Talent Officer, Viridian Staffing
The cannabis industry is still a very small community. If you don’t provide a positive, professional candidate experience during the interview process, not only might you miss out on that candidate but you may miss out on other great candidates due to negative word of mouth, blogs, or social media. If you are less experienced in this area, I suggest engaging the advice of a seasoned HR or staffing professional to help in development of your organization’s candidate experience.
*Please note that while she is an HR Professional, Kara Bradford is not an attorney. Any recommendations in this article are not to be construed as legal advice. For legal advice, you should consult your attorney.
Kara Bradford, MBA, is Co-Founder and Chief Talent Officer of Viridian Staffing. She has been an HR professional, specializing in Talent Acquisition, Workforce Planning, Employer Branding, Compliance, and Organizational Design for over 14 years. Her career has spanned multiple Fortune 100 companies in a wide variety of industries. Kara has an MBA in Human Resources & Organizational Behavior and is PRC, CIR, and CSSR Certified. She also sits on the Board of a Global Recruiting organization. Kara has spoken and is slated to speak at several National conferences this year in both the Cannabis and HR industries.
Are you a member of NCIA interested in contributing to our blog? We’d love to hear from you.
Earlier this year, Bethenny Frankel, former reality TV star, author, and founder of Skinnygirl, a low-calorie alcoholic beverage line, announced she was launching her next product, Skinnygirl Marijuana. According to Frankel, her company will engineer a strain that does not induce the munchies.
Bethenny Frankel, creator of the Skinnygirl empire.
Ms. Frankel has created a Skinnygirl empire that includes a blender, recipe books, adult-beverages, and a novel. She also wrote a children’s book based on her dog. Her first book aimed to empower women to live life to their fullest potential at all times. The Skinnygirl line now offers women low-calorie options for food and beverages as a means to find your best self. Bethenny, a true entrepreneur, now wants a piece of the cannabis gold rush.
As the cannabis industry matures, we will see other mainstream individuals and companies enter the market. The weight-loss industry has annual revenue of around $60 billion. Compare this to the legal cannabis industry with annual revenue of about $2.7 billion. Big Pharma, alcohol, and tobacco are not the only ones paying attention to the emerging green rush.
Edible product companies are beginning to produce vegan, gluten-free, and sugar-free options. But most edible products contain heavy doses of sugar, dairy, and gluten… hardly a dieters’ dream come true. Enter Bethenny Frankel. Her announcement will influence other weight-loss companies to enter the cannabis market. Will there be a “Dixie Elixir Zero” or “fat-free Sour Bhotz”?
Personally, I struggle with the idea of my dispensary, Pure Green, offering dieting products. I am an average sized woman with curves. Like every other woman in the United States, I struggled with my body image. During high school, I was a member of the cheerleading squad. I was the biggest member of the squad and was reminded of my size difference regularly. When we ordered new basketball uniforms, most of the squad ordered tops sized 28-34. Not mine. We ordered a size 40 that had to be altered in the armpits because I couldn’t get the smaller sizes over my chest.
Meghan Walstatter, owner of Pure Green dispensary in Portland, OR.
Now I can look back at these moments with a smile, but it took years to get to this place with cannabis’s help. Cannabis can help reduce anxiety, depression and stress — which can all be direct effects of body image issues. If more women relaxed with cannabis, they could have a more laid-back approach to life, resulting in an improved relationship with their bodies. I would love to help other women find body acceptance with the aid of cannabis. I absolutely do not want to participate in the exploitation of other women’s self-esteem.
Women in their 50’s and 60’s are among the fastest growing customer demographic in both the medical and adult-use markets. As retailers, we need to determine whether cannabis weight-loss products will attract these customers and other women. Women are responsible for making decisions about most household purchases. If we want our products on their radar screens, we need to offer the items they want to purchase. This may mean offering low-calorie and low-fat edibles.
Retailers can also engage in a dialogue with their existing customers about their interest in these types of products. Just because Bethenny Frankel wants to expand her product line doesn’t mean the strain of cannabis she wants to cultivate will be successful on the ground.
More mainstream industries want a piece of the cannabis pot of gold. We will see more people announcing their products lines, some with professionalism and others with ignorance. Established retailers, cultivators, and processors will have to be monitoring the response to these products to determine whether to include them in their business models. Market trends often prevail over personal values. Only time will tell.
Meghan Walstatter and her husband Matt own Pure Green, a medical dispensary located in Portland, Oregon. She is a founding member of both the Oregon Cannabis PAC and the Oregon Grower’s Association. Meghan was a member of the finance committee for Measure 91, the ballot measure that legalized cannabis in Oregon. She also has a Masters of Urban and Regional Planning from Portland State University.
Are you a member of NCIA interested in contributing to our blog? We’d love to hear from you.
I am very excited and honored to the be a keynote speaker at NCIA’s Cultivation Management Symposium in Seattle, March 16-18. I will be presenting on March 17th, focusing on Operations Management: Production, Processing, and Distribution.
In this video, you will see a brief introduction to our Denver facility, where Rolling Stone said “…if your nose is Snoop Dog-calibrated to sniff out only majority primo herb, you might just end up…“
We are proud of the work we have done in growing the finest quality small-batch medical and recreational cannabis on a large scale with consistency through beyond organic practices. There is a lot to cover and I look forward to presenting what we do and how we have done it. I will start out with the key to any strong operation, genetics, and take you right through our cultivation, harvesting, processing of the highest quality waxes, shatters, hash, live wax, live resin, and on through distribution.
If you have any specific areas on which you would like for me to speak or questions you would like to see answered, please comment here and I will do my best to make sure they are answered at the event. If you would like a private meeting or consultation at the event, please contact erik.williams@bemindful.today.
Phillip Hague, Mindful’s Master Cultivator, is widely recognized as the industry’s highly responsible leader of specialized growing practices. Having grown up working in his family’s twelve-acre greenhouse complex, he possesses a lifetime of horticultural knowledge encompassing large-scale commercial greenhouse production, large commercial landscape projects, and extensive knowledge of commercial farming practices. He understands the intricacies of industrial gardening and mindfully uses that experience to grow the highest quality cannabis with an eye toward honoring, protecting and improving genetics. Winner of numerous awards, including the prestigious Cannabis Cup, Phillip has been featured in a number of articles on the cannabis industry including High Times centerfold feature “The Indoor Acre”, in Rolling Stone Magazine, 60 Minutes, The New York Times, Yahoo News, The Wall Street Journal, in foreign press representing some 45 countries and will soon be featured in National Geographic. Prior to Mindful, Mr. Hague was the Master Grower for Golden Goat/VIP Cannabis and Natural Remedies, where he was responsible for warehouse grows and light grow facilities.
NCIA’s Cultivation Management Symposium is just around the corner!
Join us in Seattle from March 16-18 to learn from experts and pioneers in the field what you need to know to operate a successful cultivation operation while staying on top of emerging trends in the evolving cannabis industry. Register today!NCIA members save $150 on admission.
This three-day conference held at the Bell Harbor International Conference Center will showcase presentations from leaders in the cannabis cultivation arena with industry leaders specializing in sustainable cultivation methods and green business practices to learn how to keep your cannabusiness ahead of the curve while providing a positive example for others to follow.
Guest Post: Work and Well-Being in the Cannabis Industry
Across countries, continents, and cultures, we humans all have certain things in common. Generally speaking, one of those commonalities is work, which we all spend a huge portion of our lives doing. Since we all devote so much time to work, I often ask myself: “how can we make all this time spent working into the best experience it can be?” As such, my research is devoted to understanding and creating positive work environments that foster a sense of well-being, such as this latest project among workers in the cannabis industry of Colorado.
This isn’t always an easy task to accomplish. A quick Google search on “job stress” or “job safety” will instantly provide thousands of pages showing daunting statistics about how stressed out today’s worker is (like this report by NIOSH) or how dangerous some jobs are based on injuries, illnesses, and fatalities (which the Bureau of Labor Statistics tracks). The general takeaway from all these numbers is that 1) job stress is very real, and continues to increase in society; and 2) while we are continually developing better ways to make safe and healthy workplaces, there is still much more work to be done.
With these discussions in mind, you might be asking yourself: how does all this relate to workers in the cannabis industry? The short answer is “we don’t know yet”. The longer answer is “we don’t know how this relates to workers in the cannabis industry, because no one has ever asked these workers until now.” And that’s where we (my research team and I) come in, to ask these questions and provide the longest (and most thorough) answer we can.
When I first became involved with the cannabis industry, I was on a team to conduct a general health, safety, and well-being assessment for a dispensary in the Denver area. After speaking with the management and workers there, our team quickly realized that best practices for health, safety, and wellness on the job had not been addressed for this industry on a large scale. While we were able to provide our services and fill this void for that particular dispensary, it was only one piece of the puzzle – we need more pieces in order to really know how we can help this whole industry, which is constantly growing and is economically valuable to Colorado.
Additionally, there is more to satisfaction at work than simply being physically safe and healthy. Emotions, relationships, interpersonal communication, thoughts, and feelings all matter, and all play a role in determining how satisfied and happy we are with the work that we do. With that in mind, my research team and I are here to play our part in ensuring a healthy, safe, and happy future for workers in the cannabis industry.
Our team of researchers comes from Colorado State University and the University of Colorado-Denver. We are experts in a variety of fields and topics, including psychology, stress, occupational health, public health, health promotion, training, vocation, and quality of life. In this project, we are combining our skills to conduct a survey about work-related health, stress, and well-being among workers in the cannabis industry of Colorado. We are trying to understand a number of things, including why people choose to work in the industry, what sorts of jobs these workers perform, and how they feel about their job and work environment. We will then give this information back and provide results and recommendations for the industry, free of charge and with no catch.
We need help from workers in the cannabis industry of Colorado to complete an anonymous and confidential 30-45 minute online survey about your work environment and experiences. Ideally, entire organizations will participate (including management and workers) because this will allow us to paint a better picture of what is happening across the entire industry. In return, each person who completes the 30-45 minute survey will receive $20 in cash or a gift card as a “thank you” for your help! As mentioned above, we will also provide survey results and recommendations to the industry when the project is completed.
Interested in helping? If so, please complete this very brief survey to answer a few questions. After you complete this brief survey, a member of our research team will contact you to follow up and arrange to take the 30-45 minute survey. We are ready and available to come to your worksite with tablets for you to complete the survey on. If in-person tablet surveys are difficult to schedule, we can also email you a survey link or conduct pen-and-paper surveys the old-fashioned way.
Thank you for playing your role in ensuring a safe and healthy future for this industry! If you have any questions, please feel free to contact me at the email address below.
NOTE: While we recognize the importance of health, safety, and well-being on a global scale (i.e., among industries and workers in other states and countries), we are focused only on Colorado in this study in order to have confidence in how we interpret the data. If we included other states and industries, there would be too much “noise” in the data to really know what we were seeing, given that this study is the first of its kind. Ideally, we will be able to conduct future projects that can examine and answer these questions in other industries as well.
Kevin M. Walters, graduate student at Colorado State University in Industrial/Organizational Psychology
The growth of the medical marijuana movement presents a unique opportunity for advocacy groups to work hand-in-hand with the business community in order to bring about positive social change. Historically, advocates for important social reforms like the 40-hour week and safer working conditions had an understandably anti-business orientation. But when we’re talking about providing greater access to medical marijuana, such an attitude is less than helpful. In fact, it’s counter-productive. I believe if that fact were merely recognized and accepted by both medical marijuana activists and the business community, we would be much closer to establishing national acceptance than we are today.
Changing state law to allow access to medical marijuana always starts with advocacy. Most likely groups like NORML will have been agitating for years, and individual patients’ rights groups will have formed around specific issues like access for children with epilepsy or veterans with PTSD. Eventually the Marijuana Policy Project, the largest organization working solely on marijuana policy reform, will start backing the local movements by injecting capital and other resources as part of an organized push for either a statewide initiative or legislative action. Although that is an oversimplification, it paints a picture of the landscape.
Usually, once a state law has been enacted to allow for access, the advocates quiet down and business rules the day. Licensees, who are above all businesspeople thrilled at this newfound opportunity, plow full steam ahead. They raise money, build infrastructure, create jobs, and serve the community.
Although they have common interests, the link between businesspeople and advocacy groups is never formally cemented and no long-term commitments are ever made. It seems like every other big (or growing) industry understands the need for advocacy at the local and federal level. This is true across the board, not only for industries like ours which reside in a controversial space. This is reflected in the effectiveness of groups like the National Restaurant Association or the American Medical Association.
Our industry has failed to create an effective symbiosis and I lay the blame on both groups. I will start with the business element; since I am part of that contingency, I am more comfortable calling out my closest colleagues. Far too many of us fail to acknowledge that, although it may be legal to run a cannabis business in your state today, it wasn’t yesterday and it may not be tomorrow. State rules can change, and even in instances where access expands, that doesn’t mean those in the business will have a seat at the table. California is the greatest example of this. Those currently operating dispensaries in California are doing so without state licensure (as none exists). The fact that millions of dollars from the current industry participants are not pouring into advocacy and lobbying efforts to ensure California eventually does standardize licensing, and when they do, to maintain a window of opportunity for those previously operating, is mind-boggling.
All you have to do is look at the online gaming fiasco to see what could happen. Online poker sites were previously licensed offshore but doing business in the United States. When the U.S. finally accepted the reality of online gambling and allowed licensing, one of the first regulations was to ban participation by companies who had previously operated without a license. The result was the domestic closure of all the major online poker sites and a huge advertisement at the Las Vegas airport promoting real money online poker now available at WSOP.com (owned by Harrah’s). Why did this happen? Because the “big business” folks understood the link between advocacy/lobbying and business, and at the end of the day the Las Vegas casino corporations were the primary supporters of the new landscape, and of course they helped influence it being set up in their favor.
In addition to the possibility of being shut out of their current marketplaces, the cannabis business community must understand that success in their state is partially reliant on the growth of the overall marketplace and success in other states. The best thing for a licensee in Illinois is to have Missouri legalize medical cannabis. The ideal situation would be for the operators in Illinois to somehow leverage their experience in that state to access licenses in their neighboring state. The only way this has a chance of happening is for the advocacy side to be successful. For that to occur, they need money and a commitment of resources.
2013 Lobby Days, National Cannabis Industry Association, with Rep. Earl Blumenauer (D-OR)
To be fair, the advocacy groups have not done any better in forging lasting alliances. In fact, my biggest gripe with this community is their widespread distancing of their agenda from capitalism. Most, if not all, of the prominent drivers of social change on this issue have some part of their platform addressing the fact that this is about patients first. A downward spiral then ensues where, because it’s patients first, it must mean business second… or third or last or somehow altogether evil. Without successful businesses, patients will have nowhere to access the medicine that they fought so hard to get. Without successful businesses, there is no money to be poured into advocacy to open access in new states and hopefully once and for all, federally, which is the core mission of groups like the National Cannabis Industry Association (NCIA). There is absolutely no arguing this point. If that is the case, why is business so evil? It would be like a group that is fighting for family rights having part of their platform be anti-sex. Without sex you make no babies, and without successful business, patients have no cannabis.
Advocates and cannabis business owners have considerable common ground, but until they are willing to combine their efforts and wage a unified campaign, it’s going to continue to be a much harder fight than it should be.
MedMen is a medical marijuana licensing and management company with years of experience helping clients enter the field of medical marijuana, and has been a member of NCIA since August 2013.
Without a strong political machine driving legal reforms across the country, there would be no cannabis industry.
If you are a member of NCIA and would like to participate in our Annual Member Lobby Days, please visit our event page with details about the NCIA Policy Symposium and Member Lobby Days in Washington, D.C. from April 28-30, 2015.
A one-day conference focused on the latest efforts to reform state and federal marijuana laws will be held alongside NCIA’s Lobby Days, and will feature panel discussions as well as an interactive workshop teaching you how to lobby for cannabis reform. Please join us and pre-register today!
NCIA Member Profile: The Giving Tree Wellness Center
This month, NCIA checks in with Lilach Power, Managing Director at The Giving Tree Wellness Center based in Phoenix, Arizona. The Giving Tree Wellness Center has been a member of NCIA since September 2013, taking an holistic approach in supporting their clients by offering a range of medical marijuana products along with alternative healing methods, including massage and acupuncture, to promote the best quality of life possible through both their North Phoenix and Mesa locations.
Cannabis Industry Sector:
Medical Cannabis Providers
NCIA Member Since:
2013
How do you uniquely serve the cannabis industry?
Lilach Power, Managing Director at The Giving Tree Wellness Center
When Gina and I started our business, we had a vision of creating a safe and inviting environment for patients, and I think we have succeeded. We have beautiful spa-like stores that are very inviting. We do not have the traditional pot shop that I think a lot of people think of when they envision a dispensary. There are no bars, bullet-proof glass or tiny bank windows. This is truly a place to get help and find quality medicine.
We understand that patients might be intimidated coming to a dispensary at first, so we like to make them as comfortable as possible. We have private consultation rooms where patients can really sit down and be comfortable discussing their medical issues and see what options we have for them. We encourage patients to schedule one-on-one consultations with our patient consultants or with our medical director (my business partner, Gina Berman, M.D.). We never up-sell or push patients to buy anything. Our goal is only to find the ideal medicine for each patient. We never rush patients – whether they are a first timer, or this is their hundredth visit.
Gina Berman, M.D. of The Giving Tree Wellness Center
The Giving Tree takes pride in its local community philanthropic endeavors. We participate in two big fundraising events annually. Our next one is on April 11th, the Take Steps for Crohn’s and Colitis walk. We match all donations and I am proud to say many vendors have been participating, so we are getting the industry involved in our community as well. Our other big annual event is the breast cancer Walk for the Cure in the Fall. In addition, we raise money and hold canned food drives during the holiday season to help local folks in need.
Realizing that there are patients for whom the cost of this medicine is a burden, we started our own program for discounted medicine for patients on SNAP or long-term disability. We also deliver for patients with physical hardship, with no delivery charge.
Why should patients looking for medical cannabis services go to The Giving Tree Wellness Center?
Service and quality: We have an elite team of patient consultants (PCs) and we are patient-focused. Our PCs are truly passionate and have a fund of knowledge – I am so proud every time I walk into the dispensary and see how much they really care. Our patients really do become part of The Giving Tree Family.
Our medicine: We grow a majority of the medicine we offer. We stress quality over quantity and grow strains based not on their yield but on the merits of their quality and variety. We do not use pesticides, and we always use an independent, third-party lab to test all our medicine. We definitely have learned a lot during this process and our goal is to make each harvest better than the last. We are proud each time we harvest and cure and see our medicine on the menu.
The Giving Tree Wellness Center – Arizona
Can you give us some insight into the medical cannabis community in Arizona, where it’s been and where it’s headed?
Arizona is a really unique cannabis community. There are not many medical marijuana dispensaries operating and there won’t ever be, per statute. That really takes the competition out of the equation for the most part and we can really just focus on creating and maintaining a well-regulated and upstanding industry where the focus is truly just on the patients.
Also, as time goes on and more and more Arizonans are helped by cannabis, our communities will hopefully embrace us as offering a much-needed service instead of being thought of as the criminal-laden underbelly of the cities. The regulated stores are dramatically different than any black market operation. I think this will become more apparent as time goes on as more people in the community are exposed to state-regulated dispensaries.
We see the need for an organization to bring us all together and represent us on the national stage. There is no other organization that does that. We see the importance in supporting it, becoming part of it, and hopefully being more involved in the future. It is the only way to move our industry forward.
If you are a member of NCIA and would like to contribute to the NCIA blog, please contact development officer Bethany Moore by emailing bethany@thecannabisindustry.org.
Guest Post: Managing Your Talent – Your Greatest Asset!
You’ve hired your team! Now, how do you manage that talent?
Most small business owners have demonstrated they are savvy enough to have launched an organization under the most demanding circumstances in business today. But I believe all small business owners go through a rude awakening when they realize the demands of being responsible for every aspect of that business – marketing, legal, accounting, IT, operations, and human resources. If HR isn’t one of your strongest skill sets, I hope to share insights that will build your HR competencies!
Your people are your greatest asset. Are you wondering how to maximize their value to you and your organization, and vice versa? Here are what I consider to be the top five steps to take to drive results and ensure success.
SET GOALS
What are your organization’s goals for the next year? Do you want to increase revenue by 20%? Increase production by 10%? Once you have one to five goals for the organization, set team goals that directly support the organization’s goals and individual goals that support the team goals. Then, everyone is aligned with your vision.
COMMUNICATE
You have to tell the teams and the individuals what those goals are so 1) they have purpose, and 2) you can hold them accountable. Remember, communication is the exchange of information. So collaborate with your teams and utilize their input and ideas. Make time to communicate with all the individuals that work for you – regularly and frequently.
REWARD YOUR PEOPLE
Competitive compensation and benefits are important, but most of us place more value on other forms of recognition. Have you witnessed the expression on an employee’s face when thanked for a stellar idea? Have you seen the flush of pride when an employee is publicly recognized for a job well done? The gesture costs nothing but your time and effort. There are many zero-to-low cost means of rewarding employees that one can consider.
DON’T AVOID CONFRONTATION
As a new manager, I found this to be the most difficult task to learn – to address poor behavior or performance immediately. Always discipline in private, present the issue for discussion, consider the employee’s side, and work together towards a solution. If the behavior or performance can’t be improved, then you need to get better talent. Often, the business suffers solely because we are avoiding confrontation.
BE A LEADER
Communicate your vision and compel employees to follow you by being collaborative, decisive, and respectful!
Carole Richter, CRichter ~ HR Consulting
Managing your talent can be one of the most difficult and rewarding aspects of being a business owner. The task is difficult because you are always dealing with variations on a theme! The people and the factors involved in each developmental opportunity are rarely the same. But, when your employee succeeds, you succeed.
Carole Richter, owner of CRichter ~ HR Consulting, has been a member of NCIA since May 2014. Carole consults with owners of small-to-medium-sized businesses to support, complement, or develop their skill set in talent management. She offers extensive experience in recruiting, training and facilitation, employee relations, negotiation and conflict resolution, talent management, leadership development, and succession planning.
For more on navigating the complex issues of human resources, register today for NCIA’s upcoming Educational Series event, Recruit, Retain, and Develop Your Talent, taking place on March 2at the History Colorado Center in Denver!
Recruit, Retain and Develop Your Talent — This panel of experts will help you build your human resources competencies! They will present the latest trends in talent acquisition and management. You will learn how to select the best person for the position and your organization, discover how to set and align your teams towards organizational goals, and drive and engage your best performers while managing others, up or out! Acquire the knowledge and tools you need to ensure your employees and your organization are successful.
Guest Post: Illinois Cannabis Businesses – Guidelines for Compliance with Illinois Employment Laws
By Jennifer Adams Murphy, Esq., and Ryan Helgeson, Esq., of Wessels Sherman
If you are successful in obtaining a dispensing or cultivation license under the Illinois Compassionate Use of Medical Cannabis Pilot Program Act (“IMCA”), you have already made a substantial time and financial investment in your new business. You know that to be successful, you must have a dependable workforce. Continued success, however, will require employment policies which will minimize the substantial risks and costs of employment litigation and regulatory challenge. To that end, the following issues should be addressed before you begin to hire employees:
Hiring Considerations
Needless to say, your application process must be compliant with state and federal discrimination laws. Of specific relevance to your business will be federal and state laws pertaining to arrest and conviction records. The EEOC generally considers blanket rejection of applicants with conviction records illegal, and state and federal laws prohibit inquiries regarding arrest records. These laws require special attention in your business because the IMCA requires that all employees of a dispensing organization or cultivation center obtain an “agent identification card” which will not be issued under the (proposed) regulations when an applicant has been convicted of violent crimes and certain felonies. Without a card, an individual cannot commence employment under the IMCA. Because of the potential conflict between IMCA regulations and these employment laws, the safest practice is to advise applicants that their employment is contingent upon their receipt of an identification card from the state (rather than incorporating the conviction restriction into your application).
The IMCA requirements for issuance of an agent identification card, which appear to require an applicant to have a Social Security card, are in potential conflict with I-9 employment authorization requirements. Pursuant to I-9 regulations, an employer may not specify which documents an employee provides to demonstrate their employment authorization. An employee can provide any documents that satisfy the Form I-9 requirements; employers cannot insist upon a particular document such as a Social Security card. To avoid violation of federal law, your application process should clearly state that the required Social Security card and state identification card are to meet the agent identification requirements and not for employment authorization purposes.
A contract disclaimer should be included in your employment application to ensure the at-will status of any hired employees.
Employment Record Retention
The proposed IMCA regulations require that all employment-related documents be retained for five years. I-9 employment authorization forms must be completed and retained apart from employees’ personnel files.
Employee Classification
Employers who grow and transport cannabis may be able to take advantage of overtime exemptions under state and federal law. In certain situations, minimum wage exemptions may also be available. However, do not assume minimum wage or overtime exemptions apply — careful evaluation is required. Also, regardless of classification, hours worked must be recorded and retained.
Other Policy Considerations
An employment handbook should be considered. Handbooks should have contract disclaimers and must include anti-harassment policies. In addition, employment policies should address privacy issues, particularly given the regulatory requirements of video monitoring in this industry.
Required posters pertaining to employment laws must be posted.
Adoption of an employment dispute arbitration policy should be considered. A carefully drafted arbitration policy will provide for resolution of employee disputes through arbitration rather than in courts.
Voluntary compliance with the Illinois Drug-Free Workplace Act may be a wise choice. After a conditional offer of employment is made, cannabis cultivators may wish to require a drug screening. Thereafter, a program of reasonable suspicion or random drug testing could be implemented.
Employment laws are always challenging to navigate. The issues outlined above are examples of some of the issues which are easily overlooked or misunderstood. A thorough understanding of your responsibilities as an employer in this highly regulated area will diminish the risk of costly and disruptive claims.
For further information, please contact Jennifer Adams Murphy, Shareholder at Wessels Sherman Law Firm (630-377-1554 or jemurphy@wesselssherman.com) or Ryan Helgeson, Associate Attorney (312-629-9300 or ryhelgeson@wesselssherman.com).
Wessels Sherman is a law firm with offices in Illinois, Minnesota, Wisconsin, and Iowa with a practice limited to management-side labor and employment law, and has been a member of NCIA since September 2014. Ms. Murphy has been practicing for over 27 years, counseling clients and litigating before agencies and state and federal courts. Mr. Helgeson counsels and represents clients in connection with immigration and other employment-related matters.
For more on navigating the complex issues 0f human resources, register today for NCIA’s upcoming Educational Series event, Recruit, Retain, and Develop Your Talent, taking place on March 2 at the History Colorado Center in Denver!
Recruit, Retain and Develop Your Talent — This panel of experts will help you build your human resources competencies! They will present the latest trends in talent acquisition and management. You will learn how to select the best person for the position and your organization, discover how to set and align your teams towards organizational goals, and drive and engage your best performers while managing others, up or out! Acquire the knowledge and tools you need to ensure your employees and your organization are successful. Featuring: Kara Bradford, Chief Talent Officer, Viridian Staffing — Carole Richter, Principal, CRichter ~ HR Consulting, LLC — Maureen McNamara, Cannabis Trainers.
NCIA Member Profile: MBank
In the course of less than a week at the end of January, Oregon-based MBank went from announcing that they would be doing business with cannabis companies in Colorado to breaking the news that they would be retreating from Colorado for the time being, unable to support the infrastructure required to offer these services in the state. As NCIA’s first bank member, we sat down with CEO Jef Baker to ask a few questions and get to know them better.
Cannabis Industry Sector:
Financial Services
NCIA Sustaining Member Since:
December 2014
One of MBank’s brick and mortar locations in Lake Grove, Oregon.
How does MBank uniquely serve the cannabis industry?
One of MBank’s goals is to serve the underserved. We recognize that serving the cannabis industry very much meets that objective. With that mission in mind, we set about figuring out how to provide banking services. We’re a little unique in that way as a bank has to be creative and innovative in order to go about solving problems.
Why should cannabis industry professionals looking for financial services use MBank?
While we recognize there are very few banks legitimately operating in this space and therefore few good choices for cannabis industry professionals, our hope is people choose to bank with us for the same reason anyone does. That means they understand what we’re about and hopefully appreciate wanting to partner with someone that has a vision they agree with. Beyond wanting to change the status quo with regards to banking, we also take great pride in customer service through treating people with respect.
NCIA’s primary mission includes advocating for equal access to banking, but many banks in this country are reluctant or not willing to work with cannabis business owners. What are your thoughts on the future of banking in the cannabis industry? How will this situation improve for the industry going forward?
Smaller banks will most likely lead the way as they tend to embrace innovation a little more than larger institutions. As banks successfully demonstrate their ability to serve this industry, more banks will follow. If there are additional changes at the federal level, that most likely would generate more banks entering this space.
What are some of the challenges that banks have to deal with to do business with the cannabis industry?
CEO Jef Baker inside one of MBank’s Oregon locations.
Our challenge is to make sure we support and serve customers who understand that compliance is critical. We feel it is extremely important to ensure we implement strong policies and procedures, especially for new lines of business. The systems created are not designed to be intrusive or overbearing, but they are developed to help us manage risk, as we interpret it, as well as those that regulate us.
Do you still want to do business in Colorado, or other states?
The reason we are one of the first banks to so aggressively enter this space is part of our mission is to serve a completely underserved market. We very much want to serve customers in Colorado but have discovered we need to build our program to better handle the huge volume there.
How do you characterize your relationship with regulators on marijuana banking?
It is our belief that regulators do not object to their banks providing services to the cannabis industry. We believe they do have a high expectation of their banks developing strong compliance programs in this area. This is new and we are all learning together. It is critical for us to have a strong relationship with our regulators.
Why did you join NCIA?
MBank currently offers banking services for the cannabis industry in Oregon.
We believe this organization wants to see the cannabis industry be treated fairly by helping ensure that quality banking services are available. That is right in line with our mission of serving the underserved. Our position is not one that supports legalization or advocacy for legal matters (that is for others), but rather a focus on providing an industry banking services they deserve, which means both access to services as well as treating people with respect. We believe NCIA is an organization that will allow us to further and pursue that vision.
If you are a member of NCIA and would like to contribute to the NCIA blog, please contact development officer Bethany Moore by emailing bethany@thecannabisindustry.org.
Guest Post: Banking Access – The Struggle Is Real for CannaBusiness Owners
By Luke Ramirez, Walking Raven LLC
Bank accounts — normally, the most basic thing a business does when starting out is start a business checking account. Those of us in the cannabis industry, however, are very well aware of the struggle to get even basic banking while openly violating federal law. It has been an issue for cannabis companies for years; NCIA’s own Taylor West recently spoke about the banking challenges cannabis companies face in a Huffington Post article, stating, “It’s the biggest problem we have.”
Luke Ramirez, Walking Raven LLC Photo courtesy of Kim Sidwell
As an owner and operator of a retail marijuana center and cultivation warehouses, with a company, Walking Raven, which has been kicked out of more than seven banks in the last five years (including the loss of personal bank accounts), I can personally attest that this could be the most difficult part of running a cannabis company. Although there are pricey alternatives out there, the security risk of transferring and storing large amounts of cash invites crime from the criminal underworld, severely increasing your safety liability as a company. An additional burden comes with the very high cost of time it takes to manage all this cash and pay basic bills, such as power, water, and other utilities. In my company alone, we estimated a cost of over $13,000 in 2014 simply from the time it took to handle our cash.
NCIA has been an outstanding resource for myself and many other of my colleagues in tackling the banking issue. NCIA’s supportive network of other cannabis professionals has given me the advice and contacts I need to operate my business successfully, including banking. If you’re having issues with banking, I suggest that you reach out to your colleagues in NCIA for reputable ideas, or join NCIA if not already a member.
Thankfully, for the industry as a whole, the issue has been covered by the media and brought to light to the general public in much more depth in the last year since adult-use cannabis sales began on 1/1/2014; even Playboy Magazine covered the issue of banking in the cannabis industry last summer. In Colorado, Governor John Hickenlooper, who opposed the legalization of cannabis, asked the federal government to help Colorado with cannabis banking issues. In Washington State, the only other state to allow adult-use cannabis sales in 2014, the Liquor Control Board has also taken steps to help cannabis companies obtain banking, by making publicly available the sales activity of licensed growers, sellers, and processors.
Because of this exposure and the efforts of Colorado’s and Washington’s public officials, there have been major recent steps toward “above-table” banking for cannabis companies. On November 19th of last year, regulators in Colorado granted a charter to a credit union that hopes to work with cannabis companies; the union is now waiting upon an issuance of a master account number from the Federal Reserve to allow it to enter the country’s electronic banking system. In addition, there have recently been creditable solutions offered by one of NCIA’s own board members. While it is yet to be seen if these solutions are long-term, we are closer than we ever have been before to normalized banking.
A budtender at the Walking Raven shop
While we continue to wait for a mainstream solution for every cannabis company, dispensary owners and cultivators should:
Leverage their networks and gain contacts that can provide banking contacts. I recommend joining NCIA and taking advantage of the group’s reputable network if you have not done so already.
Avoid any kind of activity that could be construed as money laundering and therefore put your business in serious jeopardy. This kind of activity includes lying about the nature of your business to a bank, or using your personal accounts for a large amount of business activity.
Look into security companies that offer to handle your cash and eliminate the safety liability of using large amounts of cash. They are expensive, but may be well worth the cost for your business.
Once you obtain banking, avoid “obvious” cannabis transactions. Use cash to pay any vendor that has an obviously cannabis-related name that you must write a check out to.
When using cash, make sure to save all invoices, and get signed receipts from vendors and signed pay-stubs from employees; this will leave a much-needed paper trail in the event of an audit or investigation.
Luke Ramirez is owner and managing director of Walking Raven, LLC, a sustaining member of NCIA. Luke was also recently elected to NCIA’s Board of Directors. Luke has actively been in the cannabis industry since 2009. Since taking control of his company’s operations in 2011, he has changed the entire culture of the shop and successfully completed the process of converting all 3 licenses from medical to retail. Within his organization, he is responsible for all finance management, staffing, compliance reporting, marketing/inventory control, and public relations, among other things. Luke has been featured on many media outlets, such as CNBC, national CBS, and numerous local news stations. He is also actively involved in multiple cannabis trade organizations, lobbying efforts, and advocacy groups.
Guest Post: Tax Time – Using an LLC To Minimize Section 280E Selling Costs
Although there are many legal considerations when choosing the right type of legal entity for your business, one consideration that is often overlooked is Section 280E. Corporations, including S corporations, are required to pay reasonable salaries to owners and officers working in the business. By “reasonable” in this context we mean a certain minimum salary amount. This requirement is due to Social Security tax issues that are beyond the scope of this article. The point is that owners must draw a salary and if that owner is involved in selling, marketing and/or delivery, then these salaries are subject to disallowance under 280E.
IS A LIMITED LIABILITY COMPANY RIGHT FOR MY BUSINESS?
A Limited Liability Company is different in this regard. There is no requirement to pay a salary to the business owner who works the business. Instead the net profit of the business is the income reported by the owner. (This applies to both single-member LLCs as well as to multi-member LLCs that are taxed like partnerships.) When owners report net income rather than salary, then they have no salary expense to be disallowed under Section 280E.
CONSULT YOUR CPA
Note that this benefit does not have to be limited only to the founder-LLC member. It is possible, with proper advice and planning, to create an LLC structure whereby all of the workers get treated as LLC members. Such a structure could substantially reduce your 280E expenses and give you the competitive advantage you need to succeed.
Want to learn how to navigate the complex tax & legal landscape of the growing cannabis industry? Join us for NCIA’s first Cannabis Tax And Law Symposium on January 21-22, 2015 in San Diego, CA, offering CPE and/or MCLE credits to attorneys or accountants that attend to learn more about these important topics! Register today.
Luigi Zamarra, CPA, has been a member of NCIA since 2013. Luigi CPA is an accounting firm located in Oakland, CA, that helps all types of businesses and individuals with tax planning, tax compliance, and tax dispute services. Luigi specializes in the medical marijuana industry. He helps these businesses comply with IRC Section 280E so as to balance tax cost against audit examination risk.
*Disclaimer: NCIA does not provide legal or financial services or advice. Any views or opinions presented in this guest blog post are solely those of the author and do not necessarily represent those of the organization. You must not rely on the legal information on our website as an alternative to legal or financial advice from your lawyer or other professional services provider.
NCIA Member Profile: The Thomas C. Slater Compassion Center
NCIA is kicking off the new year by celebrating one of the founding members of our association, The Thomas C. Slater Compassion Center, Inc., where they are committed to providing safe, dignified, and affordable access to medical marijuana for approved patients in the State of Rhode Island. CEO Gerry McGraw served as a licensed caregiver in the Rhode Island program, providing medicine for a patient with a chronic neurological disorder. He has advocated for the state’s program in legislative and other public forums, and retains deep relationships with key decision-makers in federal and state government.
Cannabis Industry Sector:
Medical Cannabis Providers
NCIA Founding and Sustaining Member Since:
April 2011
How do you uniquely serve the cannabis industry?
Rhode Island law allows for three licensed dispensaries (or “compassion centers”) to provide medicine to registered patients in the state. We are grateful and humbled to have the opportunity to care for a wide array of patients, offering safe access to high-quality medicine. The needs of our patients are quite varied, so it’s important not only to cultivate superior medicine, but also to produce a diverse product line to help the greatest number of people. We believe the choices offered to patients and the knowledge and compassion of our staff are what makes the Slater Center so unique.
Gerry McGraw, CEO of The Thomas C. Slater Compassion Center
Why should patients looking for medical cannabis go to The Thomas C. Slater Compassion Center?
Patients looking for medical cannabis should go to the Slater Center if they seek quality medicine, affordable prices, a secure environment, diverse product offerings, and a knowledgeable staff. First and foremost, our medicine is grown organically by a team of expert cultivators that understand strain diversification and achieving optimal results for patient efficacy. Our team is constantly developing new products for a variety of ingestion methods, empowering patients and helping them determine the best options for their care. We maintain a mission of helping all patients regardless of their ability to pay with the provision of free and reduced-price medicine. And our Providence location is a warm and inviting oasis that offers unmatched security for all patients under our care.
Medical cannabis patients have such a wide array of challenges, many of which are often met without the guidance of their doctors. How do you empower patients and help improve their quality of life?
Our commitment to patients goes well beyond simply providing high-quality medicine. We’ve created a new department in our facility called Patient Outreach Services. The focus of Patient Outreach is to offer ancillary health, wellness, information, and support services all free of charge. We provide regular programming like Cooking With Cannabis 101, grow classes, and nutrition seminars. Our expert staff members speak before Parkinson’s Disease support groups and have even presented to local chapters of state medical societies. We have an extensive in-house library with books and medical literature devoted to the research and healing advances associated with cannabis. And since we opened in 2013, we offer free massage therapy and Reiki therapy to all our patients — delivered right here in our facility. At the Slater Center, we strive to be a true patient resource that serves the full spectrum of needs of our patients.
An inside look at The Thomas C. Slater Compassion Center
Why did you join NCIA?
We are a proud to be a founding member of NCIA, having joined when the organization was first launched. Our CEO, Gerald McGraw, Jr. is also proud to serve as a founding NCIA board member. The Slater Compassion Center was first conceived in 2010, taking years of planning and dedication to finally become a reality. We knew right away that cannabis establishments needed to come together with leaders from all over the country to share best practices and raise the standards for this nascent industry. Moving forward, we also believed that corralling the efforts of advocates on state and federal legislative and regulatory issues would be increasingly important. NCIA was the perfect conduit to bring together folks from all corners of the country to unify the voice of those in the cannabis industry. We are thrilled to see the organization’s incredible growth and effective advocacy.
Recently, the Fourth Corner Credit Union has made headlines by promising to be the first of its kind institution to serve the cannabis industry exclusively and provide the very types of banking services businesses sorely need.
We here at the Cannabis Business Summit recently caught up with Colorado’s Director of Marijuana Coordination and Cannabis Business Summit panelist to get his take on the recent developments.
CBS: Can you explain what is happening right now with the Fourth Corner Credit Union?
AF: They went through the same credit union process anybody else would go through, applied for a state charter, got a conditional state charter based on their business plan and the things that normally go into a state charter.
They went to NCUA with that. NCUA came back, according to Fourth Corner Credit Union, with “it will take us a year or two to process.” Four corners then went back to the regulations and saw that, to get a final state charter, it was only necessary that you apply for NCUA insurance.
And so upon review, The Department of Financial Services, which is a division inside the Department of Regulatory Affairs, gave them a final charter so they are now a state chartered credit union. The only step really left is not actually anything to do with deposit insurance, it’s to get a master account with the Federal Reserve. So they are now looking to get that master account which shouldn’t go to the board of directors. It should be an administrative procedure so they have some level of confidence that they can get a master account.
CBS: Why is this different that previous efforts to provide banking services that have failed?
AF: Well I’m not sure any efforts have failed, some things have come to fruition. But our entire strategy is, as many reasonable solutions that there are going forward we will do everything we can to see them continue on because we do believe this is a public safety issue. We’re hoping this is a good procedure forward but, again, we don’t see it as the final solution to this thing and we’ll continue with as many solutions to this problem as possible.
CBS: How closely do you work with the industry to find a solution to the banking problem?
AF: We meet pretty regularly with anybody who thinks they have some kind of possible solution. So we make ourselves incredibly available to industry on that.
CBS: Do you think this will work and at least provide some temporary relief to some of these businesses?
We’re hopeful but I can’t put odds on it. We’re monitoring it really closely. If they are able to set up a credit union, we’re hope that will provide some relief, even if it’s not a total fix.
When things change as fast as they do in the cannabis industry, it pays to stay ahead of the curve. Sign up today for the Cultivation Management Symposium on February 24-26 in Seattle to gain insight and network with leading industry experts and businesspeople.
Guest Post: Tuning In on Cannabis Customers
By Mike Kennedy, Atomic20
Everybody must get stoned. Okay, so Bob Dylan was actually referring to the heartbreak of relationships in this song, not our fair state of Colorado since the legalization of marijuana in 2012. But after you take a look at the numbers you’ll likely agree that “never gonna be the same again” is a fitting Dylan lyric to describe Colorado’s current cannabis culture. That includes, perhaps most significantly, the legal bud marketplace.
A recent study prepared for the Colorado Department of Revenue painted a telling picture of marijuana usage in the state. One surprising figure is that only 9% of the population consumes cannabis in some shape or form. But it’s the flipside of that statistic that makes Colorado, and other states like it, such a tantalizing opportunity for budding marijuana businesses. While Colorado has less than 500,000 cannabis users, those users do so at extremely high rates, to the tune of more than 120 metric tons annually.
Assuming the cannabis industry is here to stay, that begs the question: who is positioning themselves to reap the benefits of this legion of dedicated cannabis users? The answer: those who understand that the legal marijuana business is just that, a business. A key to long-term, sustained success in any business is creating brand loyalty. And, as of now, we know that Colorado marijuana consumers who shop retail have yet to develop any.
This isn’t lost on us at Atomic20. We’re a creative agency that specializes in market strategy and design for marijuana companies. We recently commissioned an independent study of cannabis users with the help of consumer research expert Koert Bakker. The findings paint a clear picture of the current consumer landscape…
Less than half, or 42%, of frequent marijuana shoppers have a regular store they visit.
Only 18% of casual/occasional shoppers favor any given store.
67% of occasional buyers are still learning what they like and rely on a friend or budtender to influence what they buy.
Bottom line: There is a lot of market share to be had with nearly 80% of occasional buyers and 60% of frequent shoppers still up for grabs.
So how do you go about capturing the frequent and occasional buyer, and then convert them into lifelong brand loyalists? Obviously, there’s no simple answer to that question. But here are few things to keep in mind:
Competitive pricing: Don’t kid yourself. Price supersedes just about any other factor in most buying decisions. Offering daily promotions and periodic sales is enticing to any marijuana user.
High quality: For pot smokers, this is one factor that can take precedence over price. If they find a strain they like, they will search it out and buy it again and again. Developing proprietary strains is one way to give a retail shop its own unique identity.
Market expertise: You have to have a clear understanding of what your customers want. Merchandise your shop in a logical way. Determine which edibles sell and only carry those.
Strong social media presence: Having great product at excellent prices means nothing if consumers don’t know about you. In the medical marijuana industry, social media has become an effective way of reaching out to patients. For example, having a Facebook page gives you a way to stay in touch with customers on a daily basis.
Knowledgeable and friendly customer service: This sounds easy enough, but you’d be surprised how many pot businesses fall short. Do the basics. Make sure the waiting area is clean and has comfortable seating. Offer pre-rolls that are rolled professionally. And, of course, know your product inside out.
This is a defining moment in the emerging Colorado marijuana industry. The consumer base is still anyone’s for the taking. So, even if everybody isn’t getting stoned, there’s no denying that the times they have a-changed, and the cannabis business is ripe for the picking.
Mike Kennedy is a staff writer for Atomic20 (A20) — Atomic20, a Sponsoring level member of NCIA since August 2014, is a full-service marketing agency and shared creative workspace in Boulder, Colorado. In mid-2014, A20 assembled a qualified team of MJ marketers and research experts to serve the rapidly growing needs of the cannabis industry. With a local network of 85 top designers, developers and researchers, A20 has the ability to curate the perfect team for its clients with a focus on dispensaries and MJ brands.
Guest Post: Say It Right – Colorado’s Retail Cannabis Advertising Regulations
By Jeff Cohn, CEO of COHN
With the Colorado market looking to reach $1 billion in sales this year, as well as Oregon and Alaska joining Washington and Colorado in regulating retail marijuana sales, the cannabis industry is exploding at unbelievable rate with no end in sight. With so many landmines to navigate in this nascent industry, we wanted to simplify the legal jargon for the Colorado advertising regulations in a quick reference guide. We hope you find this resource useful in building your brand while abiding by the regulation nuances.
Jeff Cohn is CEO of COHN, Inc., a sponsoring member of NCIA since October 2014. COHN is a Denver-based integrated marketing firm with a passion for contributing their years of retail and service business marketing experience to the cannabis industry. With COHN’s expertise, they are well positioned to help expanding businesses grow their brand and recognition.
Lady Business: Taylor West, Deputy Director at National Cannabis Industry Association | Ladybud
Bethany Moore: You’ve been working as Deputy Director of National Cannabis Industry Association since last winter. What are your responsibilities and how do you like working in the cannabis industry?
Taylor West: Working in the cannabis industry has been one of the most exciting, interesting, and educational jobs I’ve ever had. As one of our members told me, cannabis industry years are kind of like dog years – one is equivalent to seven in any other business. That certainly feels like it’s been true for my first year!
My job at NCIA covers a lot of different areas, but one of the most important is strategic communications and media relations. Our industry is in a very bright spotlight these days, with an intense amount of media interest. I try to make sure we’re telling the real story of our members, highlighting the businesses that make up our responsible, legitimate, and community-engaged industry. It’s really important that policymakers understand that we are an industry of hard-working, innovative small-business people, and that we deserve to be treated fairly.
NCIA Member Profile: Green Chiefs Baked Botanicals
This month, NCIA spoke with Stesha Reis, director of operations for Green Chief and Baked Botanicals in Washington state. They were the first edibles on the recreational market in Washington and will soon be launching a line of topicals. She is also the president of the Washington Marijuana Association as well as being involved in many other groups.
Cannabis Industry Sector:
Infused Cannabis Products
NCIA Member Since:
2014
A selection of infused chocolates by Green Chiefs Baked Botanicals
How do you uniquely serve the cannabis industry?
Baked Botanicals uniquely serves the cannabis industry through the largest selection of tested cannabis edibles in the state of Washington. We strive to provide a safe, enjoyable, and consistent experience to everyone. Many of our employees have been in the cannabis industry in one way or another for more than 10 years. We honestly care about our products and are continuously striving to have the best – the best experience, the best tasting, the best ingredients. We have people who love what they do and it shows in our products.
Why should those seeking infused cannabis products look for Green Chiefs Baked Botanicals?
Those seeking cannabis-infused products should look for Baked Botanicals because we make everything by hand, from scratch, with quality ingredients. We offer edibles that you would find in a good bakery, or in your mom’s kitchen…only infused with high-grade cold-pressed CO2 Oil. We want the consumer to be able to look to us as the “Gold Standard” in cannabis edibles.
You’ve been working closely with various groups in Washington state on cannabis regulations. Tell us more about what you’ve been doing to “raise the bar” for the cannabis industry.
CO2 extraction machine
We as a company have striven to be an answer and sounding board for other new producers, processors, and retailers as they go through the processes to become cannabis entities. We want everyone to feel like we can get our questions answered, and we want to help get other people’s questions answered. The more knowledgeable that we are as a state and as a group of entrepreneurs, the more successful we will be and the better we will be able to educate the general public.
Why did you get involved in NCIA?
We got involved in NCIA to be a part of something bigger – something that would have a positive impact on the cannabis market in Washington. We are here to learn from the best and exchange ideas and information relevant to our market.
If you are a member of NCIA and would like to contribute to the NCIA blog, please contact development officer Bethany Moore by emailing bethany@thecannabisindustry.org.
Guest Post: Say It Right – Colorado’s Retail Cannabis Advertising Regulations
By Jeff Cohn, COHN, Inc.
With the Colorado market looking to reach $1 billion in sales this year, as well as Oregon and Alaska joining Washington and Colorado in making recreational marijuana legal, the cannabis industry is exploding at unbelievable rate with no end in sight. With so many land mines to navigate in this nascent industry, we wanted to simplify the legal jargon for the Colorado advertising regulations in a quick reference guide. We hope you find this resource useful in building your brand while abiding by the regulation nuances.
Guest Post: A Thriving Solution – Cannabusinesses and Harm Reduction
by Matthew S. Kuehlhorn, Thrive
I am one of just over 200 certified prevention specialists in the state of Colorado. I may be the only one, though more will come, who feels there are benefits to legalizing marijuana. Legal marijuana can absolutely benefit the prevention of marijuana abuse by youth.
Matthew S. Kuehlhorn presents to a group of parents
First off, drug prevention is not really about any particular drug or group of drugs. There are no drug problems, there are life problems. And as the drug prevention field continues to evolve into this perspective, more life problems will be addressed and smart regulations will allow businesses to thrive.
What I have seen, and marijuana businesspeople can attest to, is that the regulatory framework for cannabusinesses sets the bar among any industry in existence. A simple example of this is the fact that I can take my children into a liquor store and there is no way this would happen in a dispensary. We know that does not even scratch the tip of the iceberg’s surface with regards to what minutiae you track daily.
Keep running your compliances tight and marijuana access to youth will be reduced. I have seen it happen already in Gunnison County. As a former director of this county’s substance abuse prevention project, we ask students annually how accessible they find marijuana to be. In 2013, they reported that it was more difficult to access than they did one year prior. The students completed a survey before January of 2014. In 2014, four recreational and medicinal marijuana dispensaries were opened in Crested Butte. I think for many youth, access is only getting harder.
We all know that once cannabis leaves a dispensary’s property, we don’t know how it will be handled. We also know from asking our students in Gunnison County that many teenagers who do access marijuana (and alcohol for that matter) access it primarily through social networks – friends, older students, and parents.
Matthew’s staff presents to high school youth
How do we regulate that? We can’t.
However, we can help to influence what happens. Let me explain.
Research shows that “vice” businesses cannot “prevent” the use of their substance. It simply is a blaring contradiction and it proves to not work. Studies completed on tobacco industries who tried to play a “good” line to save money showed the ads did nothing to prevent use. They did show that public perception of the company itself softened. People thought more favorably of a company that showed interest in bettering society.
I think the tobacco industry’s marketing was wrong. Their perspective of “prevention” was missing a critical aspect. They had to sit down with communities in order to find strategies that worked and they chose not to.
Matthew & fellow colleagues meet with Congressman Scott Tipton (R – CO)
The cannabis industry being so new and so unbureaucratic, you can still choose to sit down with your communities. And I suggest it is crucial to do so for you to thrive.
I sit at multiple tables. I can sit at a Cannabis Business Alliance meeting and with SMART Colorado moms and see the common interest between them. Everyone wants to thrive. We want thriving kids who are engaged with life and expressing their values, and we want an economy that supports great lifestyles while fixing some of the wrongs in the world. Nothing is wrong with that.
And we all have different values that guide our thinking on how we should get there. We can pick up sensational information, propaganda (on both sides), and more to back up our positions. Yet we share many of the same interests, and we know propaganda does little good in the long run.
I am pushing on the prevention field to address life problems and to not even look at “drug” problems. I am pushing on all of us to sit together and share our differences. This way we will see our common interests. And when we see people’s interests and understand where they come from, we can find solutions that ensure all of us thrive.
Matthew S. Kuehlhorn, CPSII, is based in Colorado and recently launched Thrive, which helps to protect the marijuana industry from an uninformed public. Thrive works closely with the cannabis industry in developing a high standard of social responsibility and customer education, and with communities in reducing risk factors and building protective factors in support of positive youth development.
Guest Post: Marijuana Victory in Oregon! Now What?
Oregon passes Measure 91, legalizing cannabis for adults on November 4th, 2014
By Ford T. Pearson, Flip-Side Magazine
[Editor’s note: Congratulations to everyone who worked so hard on the Measure 91 campaign to pass legal cannabis laws for adults in Oregon. The initiative passed with 52% of the vote. Well done! – Bethany Moore, NCIA]
Measure 91, Oregon’s adult-use marijuana legalization initiative, is likely the most elegant articulation of US regulated marijuana enterprise to date.
To be fair, Flip-Side Magazine’s paradigm of what is a good piece of marijuana legislation is heavily skewed by the economic opportunity it presents for stakeholders. While it’s clear the authors of Measure 91 remedied many of the flaws within Colorado and Washington state’s still new marijuana programs, where the measure really excels is the astounding potential for commercial endeavor.
Wholesaler category
“’Marijuana wholesaler’ means a person who purchases marijuana items in this state for resale to a person other than a consumer in this state.” —Measure 91
Measure 91 includes four stakeholder categories for which you can apply for a license. Like Washington’s I-502 categories, Measure 91 categories include producer (grower), processor, and retailer licenses. But Measure 91 also includes an exciting new category: wholesaler. The wholesaler license category, missing from Washington’s marijuana program, will make life easier for Measure 91 producers/processors and expand employment within Oregon’s marijuana program. As Washington’s I-502 producer/processors are now learning, selling marijuana can be an extremely daunting task. Even with just 66 of the planned 334 retail stores open, many I-502 processors are surprised at how time-consuming it is to manage and reconcile the preferences of 66 different buyers. Under Washington’s I-502 rules, processors have to sell directly to retailers or hire third-party marijuana sales or strain acquisition consultants to facilitate sales activities for them. Those consultants have to provide their services within a very narrow definition of activity in order to keep the transactions compliant with I-502 rules. Among the restrictions they face is the inability to actually purchase and resell marijuana the way a traditional wholesaler would. Oregon’s Measure 91 wholesaler category provides a remedy for that specific limitation and adds an entirely new facet of economic opportunity to Oregon’s implementation of a regulated, legal marijuana industry.
No “tied house” prohibition
“The same person may hold one or more production licenses, one or more processor licenses, one or more wholesale licenses, and one or more retail licenses. ” —Measure 91
Measure 91 allows for a completely vertically integrated marijuana organization. For example, under its generous licensing scheme, Measure 91 stakeholders could own several producer/processor operations, a couple of wholesale operations, and dozens of retail outlets throughout the state. Allowing this kind of structure not only increases economic opportunity, but also creates an environment that can eliminate inventory volatility and would enable micro-chains to provide consistent and reliable access to the most marketable strains of marijuana and marijuana products.
No residency requirement!
Perhaps the most significant characteristic of Measure 91 is that it does not require stakeholders to be residents of Oregon. Both Colorado’s and Washington’s programs restricted engagement (including investment from speculators) of their legal marijuana industries to residents of the state. I have to admit, when I first learned of this characteristic of Measure 91, I was disappointed. I’ve spoken to literally hundreds of I-502 applicants and licensees, and every single one of those was a small, usually family-run, business. Once Washington’s cannabis program catches its stride, those families will lay claim to their share of a half-a-billion-dollar-a-year industry, and that’s a beautiful thing.
After considering it, I think the benefits the non-residency characteristic presents likely outweigh the negatives. True, one could worry about giant companies coming into Oregon and buying up all of the strategic locations and/or resources needed to grow Oregon’s new marijuana industry, and that’s certainly possible under Measure 91 rules. However, even if that did occur, those out-of-state entities would rely upon locals to implement their plans and this would create significant employment and economic opportunities for those people. Also, and quite ironically, legal marijuana’s primary nemesis, its status as a Schedule 1 drug per federal law, works against large companies investing heavily in Oregon’s program. Federally speaking, not only would those large, out-of-state corporations be breaking the law, but they would also be crossing state lines to do so. There’s a good chance that’s more stress than your typical VP of marketing and development can tolerate. Also, it’s possible that there are quite a few Oregonians with the proverbial rich uncle who lives out of state, so the no-residency requirement would prove beneficial should they decide to engage the industry.
Anthony Johnson celebrates the passing of Measure 91 on November 4th 2014. Photo courtesy of Sam Chapman.
Go with a pro
Consider hiring a cannabis-centric attorney such as Oregon’s Paul Loney or Canna Law Group, or a marijuana enterprise consultant (usually cheaper than attorneys), or both, to guide you through the startup and license application phase.
Know the numbers
Starting up a legal marijuana business ain’t cheap. Many of the mandatory regulatory aspects of a legal cannabis business, such as fencing, surveillance and security, insurance, zoning, etc., can be big-ticket items. In Washington, even a small, Tier 1 Producer operation is easily a $100,000 investment. And if you’re a wannabe retailer, don’t forget inventory cash! Right now in Washington state, there’s a retailer bank-wiring $230,000 to a producer/processor for what is likely a 10-day supply of marijuana. Make sure you’re clear on the cash requirements for implementing your business and make sure you can access that cash. Also, be prepared to show the OLCC precisely where that cash is, and where it came from.
Hang tough!
Enduring bureaucratic scrutiny can be exceedingly frustrating. The hoops through which Measure 91 stakeholders will have to jump are significant, and you may reach a point where you consider just bagging it. Don’t. I know people who’ve quit the I-502 process, and not a single one of them is content with that decision. Don’t forget that you’re fighting for an opportunity that represents potentially generations of prosperity for you and your family.
Ford T. Pearson is Publisher/Editor of Flip-Side Magazine, a sponsoring level member of NCIA since 2014. Ford has significant experience within the legal marijuana industry, including working as a publicist for cannabis-related businesses, and as a consultant helping applicants of Washington’s Initiative 502 legal adult-use marijuana program, Oregon’s HB3460 program, and Oregon’s Measure 91 program.Flip-Side Magazine provides news and resources for the northwest cannabis industry, and is the only marijuana trade publication serving Oregon and Washington cannabis professionals.
NCIA Member Profile: CBCB – Cannabis Buyers’ Club Berkeley
NCIA recently had an opportunity to speak with Aundre Speciale, director of CBCB, a locally-licensed medical cannabis dispensary in Berkeley, California. CBCB is a patient-centered collective with limited membership, bringing patients access to medicine in conjunction with a natural perspective of wellness, and they offer educational seminars, support groups, and a variety of services.
Aundre Speciale of CBCB sits with the late Jack Herer
Cannabis Industry Sector:
Medical Cannabis Provider
Sustaining NCIA Member Since:
2014
How do you uniquely serve the cannabis industry?
My background is a mix of activism, politics, and industry. I have worked for cannabis reform for 25 years as an activist and lobbyist, gaining civil disobedience experience as well as political allies. Through my activism I have been able to hear directly from patients what their needs are, and I now currently operate several dispensaries throughout the state.
My model for dispensing medical cannabis has included opening community centers that provide free services to patients and the local community, working closely with community service providers and city government to create enlightened cannabis policy, and funding major cannabis research and reform projects. I currently share my operational experience by sitting on the boards of a number of licensed dispensaries throughout California. I have been inspired by and learned from the compassionate models of people like Jack Herer, Eddy Lepp, Dennis Perron, Val and Mike Corral with WAMM, Debbie Goldsberry and Don Duncan with Berkeley Patients Group (BPG), and many more.
Why should patients looking for medical cannabis services go to Cannabis Buyers’ Club Berkeley (CBCB)?
CBCB was started in 1996 by patients with a desire to help other patients. It continues in the same spirit. We have two employees who have worked at the collective for more than 15 years, and we have patients who have been with the collective since its beginning. I became director in 2007.
CBCB’s style is uniquely Berkeley, as are its compassionate patient-centered programs. We offer many support groups, educational seminars, wellness programs, and a compassion program that provides free medicine for patients, including children with epilepsy, chemo patients, veterans, and end-of-life patients. Many programs and services are run by patient volunteers, “patients helping patients.” CBCB believes in community responsibility and not only funds and supports cannabis research, campaigns, and advocacy, but also supports community events, projects, and organizations. Our patient volunteers walk the neighborhood daily picking up all trash, while an extra CBCB security guard patrols the neighborhood greeting neighbors. Our employees are compassionate and cannabis-educated and are happy to spend as much time as patients need to assist them in finding the medicine that works best. CBCB has an unusually large range of products to serve the individual needs of our patients. We offer free fruit, coffee, and tea, and hugs are handed out liberally. Our official motto is ‘choose love.’
Tell us about your past involvement in the California medical marijuana community. Where do you see the laws and culture heading in California in the future?
Aundre Speciale stands next to the Hemp Bus, 1991
My passion for cannabis advocacy began in 1989 at the height of the “just say no” era when my neighbor, Jack Herer, asked me to join him on the Hemp Bus, touring California and the country promoting hemp for fuel, food, fiber, fun, and medicine. Thus began my life-long love for and dedication to cannabis reform. I have been involved in countless cannabis campaigns and projects, including the federal hemp foods ban protests, and I was key organizer on behalf of defendants in the first federal trials of medical cannabis providers. I’m a founding member of Americans for Safe Access, where I developed its popular peer counseling program, gathered data for lawsuits protecting and expanding patientsʼ rights, and provided best-practices training for dispensary operators. I served on the board of the Marijuana Policy Project for three years, holding the vice chair position. I have been an early dispensary operator, opening dispensaries and working with several cities to craft medical cannabis regulations, including San Francisco, Sacramento, Venice Beach, Berkeley, South Lake Tahoe, and Oakland.
California has had a thriving cannabis culture for generations, and it is hard to get everyone to all agree what direction cannabis regulations should go. But I see California, along with the rest of the country and world, having access to adult-use cannabis, as well as hemp products, in the very near future. People are looking for safer, more natural products, from their medicine to their paints, and cannabis is the answer. Cannabis is the “new” in thing.
Why did you get involved in NCIA?
I love NCIA. I know NCIA’s executive director Aaron Smith from the amazing work he did with the Marijuana Policy Project (MPP), and he has a long record of successful campaigns. With NCIA, he has proven to be a strong, effective leader who has assembled an incredible staff. I appreciate the caliber and experience of NCIA speakers and members, truly the best in the industry, with whom I can truly learn and exchange ideas about timely and relevant industry information.
If you are a member of NCIA and would like to contribute to the NCIA blog, please contact Development Officer Bethany Moore by emailing bethany@thecannabisindustry.org.
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Studio 420
If you set expectations from the beginning of the interview that you will only be discussing the individual’s work experience and how this qualifies them for the role, you set a tone that will hopefully avoid any disclosure of information that could put the organization at risk. What makes interviewing candidates in this industry more difficult than others is that many have a very personal relationship with the plant and launch into telling you the story about this relationship if you don’t initially set the tone. Why this could end up being difficult for employers is that the information a candidate may want to volunteer could potentially put you at risk. Hiring decisions should be based on an individual’s qualifications for the job and culture fit for the organization.
We need help from workers in the cannabis industry of Colorado to complete an anonymous and confidential 30-45 minute online survey about your work environment and experiences. Ideally, entire organizations will participate (including management and workers) because this will allow us to paint a better picture of what is happening across the entire industry. In return, each person who completes the 30-45 minute survey will receive $20 in cash or a gift card as a “thank you” for your help! As mentioned above, we will also provide survey results and recommendations to the industry when the project is completed.
Competitive compensation and benefits are important, but most of us place more value on other forms of recognition. Have you witnessed the expression on an employee’s face when thanked for a stellar idea? Have you seen the flush of pride when an employee is publicly recognized for a job well done? The gesture costs nothing but your time and effort. There are many zero-to-low cost means of rewarding employees that one can consider.
Needless to say, your application process must be compliant with state and federal discrimination laws. Of specific relevance to your business will be federal and state laws pertaining to arrest and conviction records. The 
An employment handbook should be considered. Handbooks should have contract disclaimers and must include anti-harassment policies. In addition, employment policies should address privacy issues, particularly given the regulatory requirements of video monitoring in this industry.
