In recent days, and for the second time in 2018, the state-legal cannabis industry is abuzz over a new memo issued by Attorney General Sessions. Having revoked the Cole Memo in a January memo, the Attorney General’s latest memo addresses the use of capital punishment in drug cases. Notably, he urges federal prosecutors to consider the death penalty in drug cases—including in circumstances that facially could include the operation of large-scale state-legal marijuana businesses regardless of compliance with local rules.
There’s no doubt “Sessions to Execute Legal Industry Members” makes for an eye-catching headline, but it’s time to pour some cold water on the hype: It’s highly unlikely that federal prosecutors would ever bring such a death penalty case. And even if prosecutors brought such a case, it’s even more unlikely that they could convince a jury to impose a death sentence that would stand up on appeal.
Given the fervor over this news, it’s worth explaining why the death penalty shouldn’t be keeping rule-following business owners up at night. But stepping back from the sensationalized headlines, it’s also worth considering what the real takeaway from the memo should be.
First, the prospect of a federal prosecutor seeking the death penalty against an individual for conduct she committed pursuant to a state-issued license and in conformance with a state-promulgated regulatory system are exceptionally low. Ask anyone who has actually interacted with federal prosecutors (and not just seen Goodfellas or American Hustle): Federal prosecutors are, unfailingly, exceptionally dedicated public servants who care above all about wielding their powers fairly and judiciously and getting the result right. They want to prevent serious crimes and put away threats to public safety. The idea that they would seek the death penalty against the owner of a state-licensed marijuana business operating in strict compliance with those rules is farfetched. After all, by their very conduct those individuals are demonstrating their ability to abide by the rule of law.
Certainly, Attorney General Sessions is not a fan of the state-legal marijuana industries. But it is an incredible leap to believe that he intends to have prosecutors seek the death penalty in such cases. As the memo says, the Attorney General “encourage[s]” prosecutors to seek the death penalty “when appropriate.” There has been no indication to date that Attorney General Sessions or any other federal prosecutor believe the death penalty is “appropriate” for a rule-following licensed cultivator in Colorado or retailer in Nevada.
Second, even assuming a hypothetical prosecutor brought such a case and secured a conviction for the underlying offense, they would still have significant constitutional hurdles. As an initial matter, under the Sixth Amendment, those prosecutors would need to convince a jury in the state where the conduct occurred (and is licensed) that sufficient aggravating factors existed to impose the death penalty. Without getting too deeply into the legal weeds, the U.S. Supreme Court reiterated in 2016’s Hurst v. Florida that before a defendant can be sentenced to death, he has “right to have a jury find the facts behind his punishment.” Convincing a jury of the defendant’s peers in a state where the conduct is legal that the defendant’s conduct warrants the punishment of death would be a tall task for any prosecutor.
Moreover, even assuming prosecutors secured a death sentence from the jury, any defendant would immediately appeal asserting that such a punishment violates the Eighth Amendment’s prohibition on cruel and unusual punishment. As the Supreme Court reiterated in 2008’s Kennedy v. Louisiana, punishment for a crime must be graduated and proportionate to the offense under currently prevailing societal standards. That is a heavy burden for conduct that is licensed and regulated in the defendant’s home state. Particularly daunting for the prosecution is the fact that the proportionality inquiry includes consideration of which states permit execution for the offense. In this hypothetical case, the conduct in question is (1) not a capital offense in the defendant’s home jurisdiction, (2) not illegal in the defendant’s home jurisdiction, and (3) actually licensed and regulated by the defendant’s home jurisdiction.
So, if rule-abiding business owners shouldn’t spend sleepless nights waiting for a death penalty prosecution, what should they conclude from this memo? Foremost, they should recognize that their efforts to comply with state rules on marijuana are more essential than ever.
The Attorney General’s memo makes plain that federal prosecutors will aggressively pursue drug crimes. To the extent that a state-licensed business appears to those prosecutors to be violating local law and diverting marijuana to the criminal market or selling to minors, that is a prime target for aggressive enforcement. Savvy licensees are already building robust compliance programs to avoid providing any appearance that they are not in strict compliance with local rules. In a federal enforcement environment in which the Attorney General is encouraging prosecutions with a clear intent to deter bad actors in the future, those efforts become even more essential.
In short, the prospect of a death penalty prosecution of the owner of a rule-following, state-licensed marijuana business is very remote. The way to keep it very remote is to focus on efforts that demonstrate that you are, in fact, following the rules.
Michael Cooper is the co-founder and managing member of MadisonJay Solutions LLC, the leading regulatory advisor to adult-use cannabis companies. A graduate of Harvard College and Harvard Law School, he previously served as General Counsel of MHW, Ltd., a leading provider of compliance services in the beverage alcohol industry, and in the litigation department of Cravath, Swaine & Moore LLP, known as one of the nation’s premier law firms for nearly two centuries.
Do you want to have an influential role in strengthening and protecting the industry we’ve built together? This is your chance. Joining NCIA’s Board of Directorsis the premier opportunity to contribute to the progress and success of the cannabis industry.
As the only national trade association for the industry, joining NCIA’s Board of Directors is the premier opportunity to contribute to the progress and success of the cannabis industry. NCIA’s Board of Directors is the executive body that establishes NCIA’s broad objectives and strategic direction. As such, the board has authority over NCIA’s bylaws, mission, budget, and provides oversight to ensure the organization continues to serve our members’ interests as the industry grows and matures.
NCIA prides itself on truly being an organization run for and by its members. Now until Friday, April 27, NCIA will be accepting nominations for candidates to run for the Board of Directors.
WHO CAN BE NOMINATED?
Any representative of a current NCIA Sustaining Member business may run for a seat on the board with the nomination by another representative of any other NCIA member-business.
For current NCIA members wishing to nominate a candidate, nominations are being accepted through this online form. Representatives of Basic or Sponsoring level member businesses who are interested in serving on the board are encouraged to contact us at membership@thecannabisindustry.org or (888) 683-5650 to upgrade your membership before seeking nomination. You can also ask another NCIA member to nominate you by reviewing our member directory!
HOW DO MEMBERS VOTE?
After nominations close at 11:59 PM EDT on April 27, NCIA will send information about all qualifying candidates in a Voter Guide. A secure online ballot will be open to all current NCIA members starting at noon EDT on Monday, April 30, and online voting will be open until until 11:59 PM EDT on Thursday, May 31.
For questions about participating in NCIA’s board election as a candidate or a voter, please contact NCIA Membership Director, Jeremy DePasquale at Jeremy@TheCannabisIndustry.org.
Member Spotlight: Défoncé Chocolatier
Meet Eric Eslao, CEO of Défoncé Chocolatier, based in Northern California. The company produces cannabis-infused chocolates, and proudly donates to St. Jude Children’s Research Hospital.
Cannabis Industry Sector: Infused Products and Extractions
NCIA Member Member Since: May 2016
Tell me a bit about your background and why you launched your company?
I’m a Bay Area native and I absolutely love living here. I completed my undergrad at USF and MBA at SFSU. And had a super fun career at iTunes. So I literally never left the Bay Area, which is very rare.
I started the company a few years ago as I felt consumers deserved a better edible. While the overall aesthetic is what people notice first, it’s really the elevated taste and the amount of care we put into the product that I’m most proud of.
What unique value does your company offer to the cannabis industry?
A great-tasting edible.
Cannabis companies have a unique responsibility to shape this growing industry to be socially responsible and advocate for it to be treated fairly. How does your company help work toward that goal for the greater good of the cannabis industry?
Edibles–historically–have had a bad rap. Whether it’s due to some of the insane dosing that was considered normal or issues with microbes, edibles were a crap shoot for even the experienced cannabis user.
As we move into an era where dosing is more normalized and regulations are more in line with normal food manufacturing, we’ll see more sophisticated products and operators. As a result, I feel the edible industry will start to have equal footing with well-respected food brands. This normalization will elevate our industry as a whole.
What kind of challenges do you face in the industry and what solutions would you like to see?
In California, we’ve had a medical market for 20 years. Going from two decades of quasi-legal businesses to a regulated market is a large hurdle–especially for operators that have been at it the entire time. To make sure we don’t leave behind the people that got us to this point, I would love to see veteran operators allowed more time and given more resources to be compliant–specifically the cultivators that have risked their livelihood to get us to adult-use.
Why did you join NCIA? What’s the best part about being a member?
It’s great to be part of a group with like-minded individuals: cannabis professionals looking to elevate the industry as a whole.
News Alert! Omnibus Update: Medical cannabis businesses protected through September 30
by Michelle Rutter, NCIA Government Relations Manager
After years of continuing resolutions and many rounds of negotiations, Congress reached a budget deal and passed a new omnibus spending package that funds the government through the remainder of FY2018, which ends on September 30.
This new spending bill does include the Leahy amendment (formerly the Rohrabacher-Farr amendment), which prohibits the Department of Justice from using tax dollars to enforce federal law against state-legal medical cannabis patients and businesses. Following the rescission of the Cole Memo in January by Attorney General Jeff Sessions, NCIA and our allies in Washington, DC pushed even harder to ensure that this language, which has been included in federal appropriations bills since 2014, was included in the spending package for the remainder of FY2018. In addition to language protecting state-legal medical cannabis programs, the omnibus bill unfortunately also included a provision that continues to block Washington, DC from taxing and regulating adult-use cannabis, despite the fact that voters approved the legalization measure nearly four years ago.
In normal budget cycles, Congress passes a fiscal year budget that goes from October 1 until September 30. But in these extraordinarily partisan times, Congress has been unable to agree on an annual budget and has patched together short-term funding bills called Continuing Resolutions (CR’s), which maintains current funding levels. Since just last September, there have been five such short-term CR’s. All of these CR’s have included the Rohrabacher-Farr (now Rohrabacher-Blumenauer in the House and the Leahy amendment in the Senate) amendment which protects medical cannabis businesses, programs, and patients in states where it’s legal. The last of these continuing resolutions is set to expire on Friday, March 23rd. The new omnibus spending bill will continue to fund the government through the remainder of FY2018, which ends on September 30, 2018.
The congressional appropriations process for FY2019 is already underway. While we have achieved a victory in extending medical cannabis protections, there’s much more work to be done. NCIA is lobbying not only to continue the medical cannabis protections, but to also expand protections to protect all legal cannabis businesses from federal interference, including adult-use businesses operating in the eight states with such programs. We are also working to pass a cannabis banking amendment, as well as an amendment that would protect veterans who choose to participate in state-legal cannabis programs. In addition to all of these appropriations amendments, NCIA is still working to pass legislation that would solve the cannabis banking problem, amend IRC Section 280E, and, ultimately, end cannabis prohibition.
VIDEO: Aaron Smith invites you to #NCIALobbyDays this May 21-23
Over the last several years the cannabis industry has experienced unparalleled economic growth. But, as business owners in the industry, we know first hand that this success also comes with persistent challenges. As long as we still experience the crippling effects of federal policies like 280E and unfair banking regulations, our success is merely potential.
This is why it is essential that cannabis business owners are also industry advocates. With the challenges posed by the current administration and the uncertain federal policies governing our industry, it is critical that we make our voices heard on Capitol Hill.
Join 300+ cannabis industry professionals at NCIA’s 8th Annual Cannabis Industry Lobby Days on May 21-23 in Washington, D.C. to advocate for our industry and forge a unified front with the industry’s most politically engaged leaders. Register before April 30 for a chance to win tickets and travel for two to #CannaBizSummit July 25-27.
Watch this video to hear more from NCIA’s Co-founder and Executive Director Aaron Smith.
For more information about NCIA’s 8th Annual Cannabis Industry Lobby Days,
In order to run a successful PR campaign or build your own PR department you will need a set of tools that you can pull from again and again. Here are key strategies you need to tackle in order to build a successful toolkit.
Define your story. Story telling is at the heart of every PR campaign and will drive everything you do. As you know, cannabis is on fire wth new products introduced everyday. The ones who tell their story in a compelling way are the ones that will stand out. Ask yourself: how is your company, product, or service better or different than any other on the market? Is your product the first of its kind? Are you a bootstrap entrepreneur? Have you been a cannabis activist since the 90s? Does your company help people in need? Your story will be the DNA that is weaved throughout your toolkit, from your elevator speech to speaking to media.
Develop a media list. This list should have the following components: reporters’ names, titles, contact information, what they cover on their “beat,” —and this one is important—what you have pitched them and when you have pitched them. This is your guide to keeping organized and remembering who you’ve contacted. Cannabis beats are starting to fragment now into silos like “business,” “products,” and “lifestyles.” Don’t make the mistake of sending a business-focused press release to a lifestyle reporter. It’ll be ignored. There are companies like Meltwaterthat provide a comprehensive and constantly updated media data base. While there is a yearly subscription, it will help save an immense amount of time since pulling together a media list is time intensive.
Develop a media kit. When sending out a press release or pitching media, you should provide them with everything they need to run your news. Include facts about company executives and leaders as well as their headshots, a company overview, press releases, and compelling photos and images of your product or service. The goal of a media kit is to make it easy for reporters to understand the who, what, why, when and how of your company and its unique story. If reporters are provided with all this information (most importantly high-quality images and photography) at their fingertips, your chances of coverage increase. Your media kit should be online, digital, and easy to access.
Develop a press release. This could be its own blog but for now here are the key steps. Keep it simple. Stick to the who, what, where, when and how. Write a compelling headline that helps your news stand out and write the body of the release in the inverted pyramid style, meaning, have your most important information in the lead paragraph then include less important news below. (Industry secret: Most reporters will stop reading after the first paragraph. Make it a good one!) Write your press release in Associated Press (AP) style. This is the language that reporters understand and will recognize when they see it. Be upfront and transparent, clear and concise. Reporters are too busy to dig for the news in your release so keeping it simple will help you get more coverage.
Distributing your press release. Using your media list, send one email at a time (never do a mass, BCC: pitch), customize your email and make it personal. The goal here is to build relationships with reporters, not spam them. It’s important to follow up after sending your release but don’t make yourself a pest as reporters are overworked, cover myriad beats, and are always under deadline. Always. If you want a broader approach distribute your press release through a wire service. The huge advantage here is the breadth of media outlets your press release will get in front of, however, you won’t get that personal touch point. Wire services can be expensive but depending on the scope of your news, entirely worth it.
Leverage social media. Again, this could be its own post, but the short take is: use your social media channels (Facebook, Twitter, Instagram, LinkedIn) to announce your news. Since a press release is written in a specific style for reporters, feel free to re-craft for your social audience in a friendlier, accessible voice. Reach out to reporters on Twitter with your news (with a big caveat: some do and some do not like to be pitched on social media and in public; do your research before tweeting a pitch). Lastly, when and if you get any coverage, you must post it on your social media pages. It’s a powerful way to increase your visibility, build credibility, and connect with new followers.
Carol Ruiz is co-founder and Partner of Higher Ground PR and Marketing. Janitor, construction crew clean up, waitress, documentary filmmaker, adjunct professor… just a few of the paths Carol Ruiz walked before finally finding what she would do for the rest of her life.
At these former gigs, as founder of NewGround PR & Marketing (a highly regarded agency in the real estate space), at Higher Ground, and at dinner tables the world over, Carol is a storyteller. Storytelling being the heart and soul of public relations, it’s no surprise that Carol was drawn to the world of PR.
Quarterly Cannabis Caucuses: “The Strongest We’ve Been, When We Need it the Most”
by Brian Gilbert, Events Manager
The turn of the new year brought with it new challenges and opportunities for the cannabis industry. We were shocked by the rescission of the Cole Memo, but optimistic about our industry’s continued growth and progress over the past few years. Knowing that now – more than ever – the industry needed an opportunity to take unified action at the federal level, NCIA enthusiastically hosted the third year of it’s Quarterly Cannabis Caucus event series and the turn-out was nothing short of inspiring. In the eight nationwide events in January, more than 1,200 cannabis industry professionals took unified action to reform federal cannabis policies by attending Cannabis Caucus events.
In fact, throughout the rest of the Quarter, we smashed attendance records and saw our network mobilize around a national campaign to support the Leahy Amendment in the Senate.
Highlights in Northern California, Southern California, and Pennsylvania
Returning to Oakland, our guest speaker Lindsay Robinson, Executive Director of California Cannabis Industry Association, provided an in-depth update on the recent launch of adult-use sales across the state plus pending rules and regulations.
In Newport Beach, Congressman Lou Correa (D – CA, 46th District) addressed our highest attended Quarterly Cannabis Caucus to date, encouraging industry leaders to keep up the pressure and engage with their elected officials in light of rescinding of the Cole Memo.
We hosted our first-ever event in Pennsylvania with nearly 100 people in attendance.
Highlights in the Midwest, Florida, and the Pacific Northwest
NCIA returned to Columbus, Ohio, following our inaugural event in July 2017 where our second state affiliate, NCIAO was launched.
After discontinuing our events in Florida in 2017, we hosted our first event of 2018 in West Palm Beach and saw an incredible turnout of nearly 100 cannabis industry professionals.
Our newly combined “Pacific Northwest” region returned to the Portland area with guest speaker, Casey Houlihan, the Executive Director of Oregon Retailers of Cannabis Association.
Highlights in the Southwest and Colorado
Our return to the Southwest region saw a record turnout in Las Vegas where we were honored to be joined by Sen. Tick Segerblom (D – NV, District 3) and nearly 100 attendees.
We concluded the Q1 series with a blowout event at the Ellie Caulkins Opera House in Denver, Colorado, where we saw the largest demonstration of support for our community-building efforts yet with nearly 300 in attendance! In addition to Chuck Smith of Colorado Leads & COO of Dixie Brands, we were joined by Borahm Lee of Break Science, who provided entertainment throughout the event.
NCIA’s Q1 Call to Action
Throughout the month of January we encouraged attendees to participate in an online Call to Action which allowed them to contact their Senators and urge support for the Leahy Amendment, which would ensure that vital medical cannabis protections are included in the appropriations bill. More than 30% of our attendees (378 to be exact) took action to support the Leahy Amendment by using our online advocacy platform. In 2017, Sen. Patrick Leahy (D-VT) sponsored the amendment in the Senate, which passed through committee, but we still need your help to get it in the final version of the bill!
The Upcoming Q2 Cannabis Caucus Event Series
We’re excited to announce that registration for our Q2 Cannabis Caucus Events is now open! Join us in new regions and cities for meaningful networking opportunities with industry professionals, policymakers and government officials.
As a dispensary budtender or owner, you always want to do everything you can to better serve your patients. Oftentimes, that means suggesting different strains and types of medical cannabis based on specific conditions and symptoms. To do that, you and the rest of the staff must understand the chemical makeup of marijuana, including the intricacies of cannabidiol and other cannabinoids.
Cannabidiol and Patients With Chronic Illness
Cannabidiol (CBD) is one of the two primary chemical compounds, or cannabinoids, found in the cannabis plant. The other is tetrahydrocannabinol, more commonly known as THC. However, unlike THC, CBD does not have the psychoactive properties that cause the user to feel high.
Instead, CBD alone can provide patients with many of the pain-relieving benefits of traditional marijuana products without creating that euphoric, but often debilitating, “stoned” feeling. This allows patients who prefer to avoid that effect — like children, the elderly, and recovering addicts — to still benefit from healing powers of medical cannabis.
So, CBD can be used to treat the pain that results from many conditions and symptoms, including cancer, epilepsy, lupus, Parkinson’s disease and related diseases. You can also use CBD to treat mental health conditions, such as anxiety, depression, obsessive-compulsive disorder, insomnia, and schizophrenia.
How Can Budtenders and Dispensary Owners Talk to Patients About CBD?
As budtenders, part of your job is helping patients understand how using CBD to treat chronic conditions can help them. Remember, most people probably have not heard of CBD, and patients may be hesitant to learn about it. Start by explaining the benefits of using only this cannabinoid, such as being able to avoid the high while still finding pain relief. If they seem interested, encourage them to ask questions and tell them more about the specific products that would best treat their symptoms.
A general rule of thumb when discussing marijuana strains is that indica strains — as well as indica-dominant hybrids — have higher CBD content, while sativa strains and sativa-dominant hybrids have a higher THC content. Of course, every strain has a different ratio of CBD-to-THC, but there are many that have little to no THC at all.
While the CBD strains a budtender should recommend will depend heavily on the patient’s specific symptoms, here are a few examples you can choose from:
Swiss Gold
Sour Tsunami
ACDC
Valentine X
Harlequin
Frequently Asked Questions About Cannabidiol
The best way to prepare for patients’ questions is to think about what they may be. Here are three common concerns patients will likely have about CBD:
Is It Safe for Children?
Yes — in fact, it’s incredibly beneficial for children suffering from epilepsy, specifically. One study found that epileptic children experienced an 80 percent reduction in seizures when they used cannabis with a high CBD content.
Will It Still Work?
While everyone reacts to marijuana differently, countless studies have shown CBD is effective in treating all sorts of health conditions and symptoms, like the ones discussed above.
How Can I Ingest CBD?
You can ingest or administer CBD the same ways you would take any other form of marijuana, including by smoking or vaping the herb or oil, eating or drinking an edible product, applying it as a topical lotion or taking a tincture or capsule. However, be sure to check your state’s laws on how you can take your medicine, as each has different guidelines.
Learn More About CBD and Patients With Chronic Illness From MarijuanaDoctors.com
Interested in learning more about how your dispensary can better serve its patients? MarijuanaDoctors.com provides patients with the resources needed to find a trusted doctor in their area and to find reputable dispensaries so that obtaining medication is simple. Check out our other resources at MarijuanaDoctors.com for more information. For even more benefits, register your dispensary with our site today.
Member Blog: Picking a Fabulous Flack (Part 1 of 3)
Media relations is the bread and butter of any PR campaign, and picking the best PR strategy for your company is crucial. PR is often confused with advertising and while the lines have blurred in recent years, there are still key differences between the two practices:
In the traditional sense, an “ad” is conceived, designed, written, and placed in a media outlet, for a fee. PR is “earned media” meaning that a PR pro has convinced (or “pitched”) a member of the media to write a positive article about a company, brand, product, dispensary, or service. A PR agent may have a fee, but there is no cost attached to the appearance of the article, and the article not filtered through the suspicion and cynicism through which many ads pass.
Consumers understand that ads are biased – towards the advertiser! But a positive news story, written by a journalist, has much more credibility.
An ad’s message has been brainstormed endlessly by countless “creatives.” But an article is articulated in the voice, and perspective, of the journalist. A good PR person knows how to increase a company’s chances of positive publicity by developing relationships and trust with journalists, pitching journalists whose style and tone indicate they are looking for a good story to tell, and providing training for spokespersons to stay “on message” in interviews.
The credibility of a positive article makes PR a very attractive opportunity in the cannabis industry, particularly given the unfriendliness of major companies like Google and Facebook. So, how do you decide the best approach? In-house? Hire an agency? What about budget?
PR salaries can range anywhere from the mid $50,000s to well into the six figures for management. Agencies will structure pricing differently, often with an hourly retainer. PR folks can be stereotyped as offering big promises with few results. Especially in an emerging industry, deep industry experience is uncommon. Experience in the field is a huge advantage as the agency will have already formed relationships with journalists who cover cannabis and will not have as big a learning curve when taking on a new client.
When interviewing agencies, ask candidates for the names of editors and/or reporters they frequently work with and then contact the top three for references. And, perhaps even more importantly, ask for references from other clients the agency has represented. And while you’re at it, ask about the agency’s philosophy on media outreach. If the company uses a shotgun approach by sending out massive amounts of press releases versus developing a client’s story fully and strategically communicating it to carefully researched journalists, it would be wise to move on to the next candidate. PR is all about story-telling and while press releases are a good occasional tool to disseminate big news, the most effective PR pros are good story-tellers who understand that identifying the right publications and journalists and providing customized pitches that resonate with the journalists are the ones who’ll be the most effective.
If an agency you are interviewing guarantees a specific number of articles per month or quarter, it might be a good idea to pass on engaging it. Nobody can guarantee a specific amount of media coverage. Instead, ask for case studies and past results for evidence of an agency’s success rate.
Cost is a factor and rates vary. Average hourly rates for an agency focusing on cannabis seem to be between $125 and $200 an hour, and with firms clamoring to enter the industry, you can swap experience for a lower rate (but be careful… no relationships with cannabis media can equal no coverage.) And perhaps the most important factor of all is culture. Do you like them? Do they vibe with you? It’s vital that an agency understands its clients to their core and acts as a true partner. In cannabis, there is inherently a social justice and activist component to the work. An agency who lacks in that sense of “mission” should raise a red flag. What we as an industry do know, and the maturity with which we do it, has a major role in determining our industry’s future. Don’t forget that!
Carol Ruiz is co-founder and Partner of Higher Ground PR and Marketing. Janitor, construction crew clean up, waitress, documentary filmmaker, adjunct professor… just a few of the paths Carol Ruiz walked before finally finding what she would do for the rest of her life.
At these former gigs, as founder of NewGround PR & Marketing (a highly regarded agency in the real estate space), at Higher Ground, and at dinner tables the world over, Carol is a storyteller. Storytelling being the heart and soul of public relations, it’s no surprise that Carol was drawn to the world of PR.
VIDEO: Member Spotlight on Palm Springs Safe Access
In this member spotlight, we speak with Robert Van Roo, founder of Palm Springs Safe Access, a medical cannabis dispensary based in Palm Springs, California. PSSA has been a member of NCIA since 2014. Learn more about PSSA as they prepare to serve the adult-use market in California.
by Michael Correia, NCIA Director of Government Relations
Following a brief shutdown in the wee hours of Friday morning, Congress came to yet another short-term budget deal to continue funding the federal government until March 23, 2018.
In normal budget cycles, Congress passes a fiscal year budget that goes from October 1 until September 30. But in these extraordinarily partisan times, Congress has been unable to agree on an annual budget and has patched together short-term funding bills called Continuing Resolutions (CR’s), which maintains current funding levels. Since just last September, there have been five such short-term CR’s. These short-term funding bills have not only hampered basic government functions, but have also affected military readiness and has even led to a federal government shutdown, which has lowered the public’s already dismal opinion of Congress.
After much negotiation between House and Senate leaders, it appears that the parameters of a two-year budget solution have been agreed to. The new budget deal is both bipartisan and bicameral (which has become a rarity in Washington, D.C.) and addresses many controversial issues that have hindered previous negotiations. This new budget deal increases funding levels for the military, provides billions in disaster relief, addresses infrastructure, education, child care, and attempts to combat the opioid epidemic.
But, in typical Congressional fashion, the details still have yet to be finalized. The Congressional Leaders have agreed to work with the leaders of the appropriations committees to ensure that all budget priorities are met.
So, what does this mean for your business and what does this mean for medical cannabis protections?
Since 2014, the federal budget has included language that protects medical cannabis operators from Department of Justice prosecution. These protections will be maintained in this short-term funding bill, so medical cannabis programs and businesses are protected until at least March 23, 2018. However, it is imperative that Congress maintains these protections (and even expand protections for adult-use) in the longer budget that is being negotiated between now and March 23. NCIA will continue our Congressional lobbying efforts and work with our partners and other advocates to continue these protections.
Our team in Washington, D.C., works everyday to make the industry’s voice heard, but nothing matches the power of a personal story personally told. Remember to join us for NCIA’s 8th Annual Cannabis Industry Lobby Days this year on May 21-23 in Washington, D.C.
VIDEO: Save The Date For NCIA’s 8th Annual Lobby Days!
JUST ANNOUNCED! On May 21-23, 2018, NCIA Members will descend on Capitol Hill in Washington, D.C. for the 8th year in a row.
WHAT IS LOBBY DAYS? Every year, the National Cannabis Industry Association hosts the annual Cannabis Industry Lobby Days in Washington, D.C. This year, Lobby Days will bring over 300 cannabis industry professionals together to make their voices heard in the halls of Congress.
WHY ARE LOBBY DAYS IMPORTANT? With victories in eight states across the country during the 2016 presidential election, as well as the challenges posed by the new administration, fixing federal policies is more critical than ever. This year, we will continue to emphasize the importance of protecting legal cannabis businesses and patients, reforming section 280E of the federal tax code, and solutions to the banking crisis, all of which are critical to respecting state marijuana laws. Our team in Washington, D.C., works everyday to make the industry’s voice heard, but nothing matches the power of a personal story personally told.
Watch this short video to see highlights from last year’s 7th Annual Cannabis Industry Lobby Days, and to learn more about why you should plan to join us this year as we create momentum for cannabis policy reform in the halls of Congress.
VIDEO: Protect Medical Cannabis – Support the Leahy Amendment
Watch this video update with NCIA’s Co-founder and Executive Director, Aaron Smith, to learn more about what’s happening in Congress in Federal Appropriations. We’ve made it easy for you to take action to help ensure state-legal medical cannabis businesses and patients continue to be protected from Department of Justice enforcement. Log on to our advocacy platform before February 8th to contact your Senators to urge them to support the Leahy Amendment.
***UPDATE: A short-term budget deal was struck on February 9th, extending funding of the federal government through March 23rd.
NCIA’s 2017 Ambassadors Help Us Grow!
NCIA was founded on the principle of power in numbers. The thousands of American businesses involved in the state-legal cannabis industries represent a tremendous economic force in this country. As the industry’s national trade association, NCIA works every day to ensure our growing business sector is represented in a professional and coordinated way on the national stage. That’s why one of the most powerful ways our members can take action in the movement to reform federal cannabis policy is to recruit new member businesses.
NCIA Ambassadors receive hoodies!
NCIA would like to thank and recognize our members who have gone above and beyond in supporting our work by becoming official 2017 NCIA Ambassadors.
One Ambassador was randomly selected out of 86 to win a prize:
These Ambassadors have recruited 3 or more members and will receive complimentary registration to one of our national conferences and receive a complimentary NCIA hoodie.
This month, NCIA highlights Phylos Bioscience based in Portland, Oregon. Co-founder and CEO Mowgli Holmes is a molecular and evolutionary biologist and was a National Research Service Award Fellow from Columbia University. He is a founding board member of the Cannabis Safety Institute and the Open Cannabis Project, and is Chair of the Oregon State Cannabis Research Task Force.
Phylos Bioscience
Member Since:
May 2015
Business Category:
Analytical Testing Laboratory
Tell me a bit about your background and why you launched your company?
In 2013, the industry was just starting to blow up, but it had basically zero science. There was a really clear need for a company focused on studying the cannabis genome — one that would be able to make genetic tools available to the industry.
But I think it just so happened that I was one of the very few scientists at the time who was between jobs, and had a background in genetics, roots in Oregon, and an unashamed enthusiasm for weed. I was the right mix of New York and Oregon at the right time. Or the right mix of geneticist and hippie.
Most scientists are still too freaked out by cannabis to dive in. Isn’t that silly?
What unique value does your company offer to the cannabis industry?
Our team of scientists has the expertise to leverage genomic data into products and technology that growers really need. But what’s most unique about Phylos is that we have a genomic database of different cannabis varieties that is significantly larger than any other. It took years to collect it, and it took the help of the American Museum of Natural History, as well as a huge amount of trust-building in the industry. This database is the foundation of everything we do, and it would be very hard for anyone else to recreate anything like it.
Cannabis companies have a unique responsibility to shape this growing industry to be socially responsible and advocate for it to be treated fairly. How does your company help work toward that goal for the greater good of the cannabis industry?
We actually do a ton of “activist” stuff. We started a nonprofit to drive rational safety testing guidelines (Cannabis Safety Institute). We started another one to block big corporations from patenting cannabis varieties (Open Cannabis Project). And for more than a year I hung around the state capital constantly, helping to write the laws and rules that structure the Oregon industry, and serving as the Chair of the Oregon State Cannabis Research Task Force. We drafted laws that helped small growers, and laws that supported cannabis research, and we wrote the study that led to Oregon’s strict pesticide testing rules.
In general we’ve just let ourselves get dragged into this very politicized industry, and tried to fight for the idea that legalization should mean that the people who started this industry should be legalized, not replaced.
What kind of challenges do you face in the industry and what solutions would you like to see?
We’re lucky because we’ve always found ways to do our work while still staying federally legal. So obviously the whole industry needs banking, 280E relief, protection from the federal government, etc. But Phylos doesn’t directly need any of that — we just need it because we want the industry to be strong and sustainable. The biggest problem for us is the lack of research, and the federal government’s continuing unwillingness to make real cannabis research possible. And actually that’s one thing that could be fixed easily if there was just the will to do it in D.C.
Why did you join NCIA? What’s the best part about being a member?
Well, the conferences are some of the best out there. And there’s a real sense that instead of them just being another commercial conference, they’re actually run by an organization that is fighting for the industry, and taking on the hard challenges of federal lobbying and so on. I’m also on the NCIA Scientific Advisory Committee, and it’s great to see the commitment throughout the organization to working for things (like reasonable testing regulations) that the whole industry needs in order to function.
2017 Year In Review: NCIA’s seven year history
Last year represented the most robust growth phase for NCIA in our seven-year history. The increase in membership and revenues has allowed us to expand our presence in Washington, D.C., provide better benefits and service to our members, and produce the best events in the industry.
Organizational Highlights
NCIA membership rolls increased by 40% during 2017 and NCIA is beginning the year with 1,530 dues-paying members.
Increased revenues allowed increase our budget for lobbying and public affairs on behalf of the cannabis industry by over 60%.
NCIA launched its Policy Council which has led the development of four policy white papers and has generated additional funding for our work in Washington, D.C.
NCIA worked with the Governors of the first four states to regulate marijuana to generate a sign-on letter urging the administration not to interfere with their states’ cannabis programs.
As we enter into our 8th year as your national industry association, we’re grateful to our more than 1,500 member businesses across the country who make our work possible. This year, it is more important than ever to unify as an industry and make our voices heard in the halls of Congress. Start planning now to join us in Washington, D.C., on May 21-23, 2018 for our 8th Annual Cannabis Industry Lobby Days. Let’s stand together and show our nation’s decision-makers what a legitimate, responsible cannabis industry looks like. See you in D.C.!
NCIA Committee Updates: A quick look at what our committees have been up to.
by NCIA’s Membership Department
NCIA committees are an opportunity for members to get directly involved in specific industry issues and sectors. These volunteer-driven efforts engage members’ expertise and passion to drill down in of expertise and passion to effect change, provide professional development opportunities, and develop best practices and guidelines that will shape the future of our industry.
Since launching in June 2017, NCIA’s member-led committees have been working at a lightning pace to develop content and help push the industry forward. Our committees are working on things like bests practices, white papers as well as developing content for our upcoming informational webinars.
Stay tuned for your chance to get involved, applications for the 2018-2019 committee term will open in the late spring of 2018.
The “MAC” has hit the ground running and hasn’t looked back since getting going 7 months ago. Aside from working on a Colorado state marketing and advertising regulations guide, they are also working hard developing a PR crisis manual for cannabis businesses. If that doesn’t sound like enough, their aim for the year is making inroads with Google, Facebook, and Instagram to discuss fair marketing and social media services. ___________________________________________________________________
SAC (Scientific Advisory Committee)
Co-Chair: Markus Roggen, PH.D outco Co-Chair: Paul Muchowski, PH.D Dr. Paul’s
The “SAC” works on educating the public on the scientific basis and medical benefits of cannabis by assisting NCIA committees with tasks that involve science (e.g. Testing Policy Workgroup). This committee is also involved in content selection for NCIA conferences to ensure scientific quality. ___________________________________________________________________
IPC (Infused Products Committee)
Chair: Adam Gillman Field Vice-Chair: Todd Winter Winter LLP
The “IPC” has begun coordinating with testing labs throughout the country to create a set of standards meant to increase accuracy and reliability of cannabis testing. The committee also has a goal of developing recommendations regarding dosing standards for edible/ingestible products. _________________________________________________________________
The “CCC” has set out with the goal of creating a guide called “Metrics that Matter,” the purpose of which is to help growers maximize cultivation efficiency. With this in mind they have assembled committees in four key areas – lighting, environmental controls, inputs, and precision technology to help develop this guide. ___________________________________________________________________
The “LBC” is hard at work developing an education program on the 280E tax code to help bring clarity to business owners. They are also working on bringing awareness and educating financial institutions on banking the industry through various means, including their recently published White Paper,Investigating the Role of Financial Institutions in the Legal Cannabis Industry(Click the link to read the report). ___________________________________________________________________
The “PLC” was formed to help the industry understand packaging and labeling compliance, which consist of a complicated patchwork of separate state laws. They are in the process of creating a packaging and labeling best practices blog that will share real industry experiences of package labeling and child resistance challenges and are developing content for NCIA’s upcoming webinars informational series. ___________________________________________________________________
The “RCC” is currently working on blog topics to be featured on NCIA’s website and newsletter while developing topics and content and working with NCIA to build out the robust webinar series planned to launch in 2018. __________________________________________________________________
“FISC” has separated into subcommittees: Contracts, Risk Management, and Insurance with the goals of developing white papers for each. Risk Management’s white paper, “Mitigating against the coming wave of cannabis false advertising and unfair competition claims” is almost ready for publication. Stay Tuned! _________________________________________________________________
Cannabis Industry Employee? Take this quick survey.
Help US help YOU create positive workplace cultures with thousands of satisfied and happy employees by encouraging (and creating incentives for) your employees to complete the first cannabis industry employee engagement survey. The survey takes only 5-10 minutes to fill out and is completely anonymous.
Overall Worker Satisfaction · Worker Needs and Desires around Benefits · Worker Desires around Community Engagement opportunities
Who should take this survey? Employees of direct-to-plant cannabis companies, including cultivation, retail, and processing and manufacturing from MIPs and concentrate companies, with a heavy focus on Colorado-based companies.
Cannabis companies that self-report participation of over 90% will receive recognition by NCIA in the future report. One lucky participant will even win a complimentary Seed To Sale Show 2018 registration.
We believe the results of this survey will provide immeasurable value as companies within our industry seek to build happy and fulfilling work environments. The results will be analyzed and compiled into a comprehensive report which will be shared with the cannabis industry at large.
Juicing is an increasingly popular health trend. Many people, from nutritionists to athletes, are consuming pressed vegetable juices to get the nutrients contained in leafy greens like spinach and kale. But what about cannabis?
Health Benefits of the Cannabis Plant
The leaves of the cannabis plant are rich in antioxidants, polyphenols and antibiotics, along with cancer-reducing and anti-inflammatory compounds. In fact, the U.S. federal government found in pre-patent research that CBD, which is a cannabinoid found in raw cannabis, is a stronger antioxidant than vitamins C or E.
Along with its nutritional value, raw cannabis can provide therapeutic effects and promotes basic cell function – activating receptors in your brain, releasing antioxidants, and removing damaged cells from the body.
Studies have also shown that consuming raw cannabis has the potential to treat lupus, arthritis and neurodegenerative diseases, help stimulate appetite and decrease nausea, prevent the spread of malignant prostate cancer cells, and prevent cell damage that can lead to serious illness and poor health.
Consuming Raw Cannabis
Consuming raw cannabis does not cause the “high” feeling that one gets when smoking cannabis or consuming it via edibles. This is beneficial for those who do not enjoy the psychoactive feeling often associated with marijuana.
By consuming the plant raw, one can receive all the nutritional and health benefits of the plant without feeling stoned. In fact, it’s been reported that you lose 99% of the health benefits of the cannabis plant when you smoke or cook it.
Juicing marijuana is the easiest and most convenient and way to consume the nutrients found in raw cannabis. Juicing the leaves of raw marijuana extracts essential minerals, vitamins and antioxidants, including:
Iron
Zinc
Calcium
Potassium
Selenium
Carotenoids
In terms of dosage, one suggestion is to consume 30g of fresh cannabis leaves per day.
Tips for Juicing Raw Cannabis
Add in 2- to 4-inch buds and 15 large fan leaves into a juicer. You can use the juice in smoothies with other vegetable and fruit juices, or freeze the juice to make ice cubes. Freeze leftover leaves to preserve their nutrients for future juicing.
Additional Tips for Juicing Cannabis:
Don’t use dry cannabis or nuggets that have already been cured for smoking.
Look for small, sticky crystals on the flowers and make sure that buds are amber colored.
Combine 1-part cannabis juice to 10-parts carrot juice to help reduce cannabis bitterness.
Additional Raw Cannabis Information
When incorporating raw cannabis into your diet, there are side effects to consider, including allergic reactions, possible ingestion of insecticides and pesticides, and compromised immune system from possible pathogenic exposure.
Consuming raw cannabis isn’t the best solution for fast symptom relief. Typically, it takes about three days to notice benefits. For some, the benefits may not be noticed for four to eight weeks as the nutrients build in your system.
To learn more about the benefits of cannabis, or to find a medical marijuana-recommending physician near you, visit MarijuanaDoctors.com.
Jason Draizin is the Founder and CEO of the Medical Cannabis Network and MarijuanaDoctors.com. Founded in 2010, MarijuanaDoctors.com is a secure portal for qualifying patients looking to connect and schedule an appointment with medical marijuana-certified physicians. The site has assisted in the certification of more than 300,000 patients in the U.S., and has established a network of more than 700 physicians nationwide.
Department of Justice Rescinds Cole Memo: Here’s what to expect
This morning, Attorney General Jeff Sessions announced the Department of Justice’s move to rescind the “Cole Memo” and two additional memos related to marijuana enforcement policy. These memos, issued in 2013 and 2014, have helped to clarify the Department’s response to state-legal cannabis activity.
This is disturbing news for the cannabis industry and the majority of U.S. voters who support legal cannabis. However, the rescinding of this memo does not necessarily mean that any major change in enforcement policy is on the horizon. This has been, and still will be, a matter of prosecutorial discretion.
NCIA’s team in D.C. is working tirelessly to ensure that the administration and the Department of Justice uphold President Trump’s campaign promise to not interfere with state-legal cannabis programs by making sure they understand that regulated cannabis is successfully undercutting the criminal market, while funding important state programs.
At this time, it’s critical the cannabis industry unify to amplify that message so it’s crystal clear. It’s also imperative that Congress take action to align federal legislation with the majority of states, which now allow some form of legal cannabis.
One pressing issue before Congress is Senator Leahy’s appropriations amendment which would prevent the DOJ from using resources to undermine state medical cannabis laws. (The Senate’s version of the Rohrabacher-Blumenauer Amendment in the House.)
Please call your U.S. Senators today and urge them to include the Leahy Amendment in the upcoming Omnibus Appropriations Bill.
Talking points to help guide your call are included on our online action page.
To learn more about NCIA’s advocacy efforts or the NCIA-PAC, please contact NCIA Government Relations Manager, Michelle Rutter by emailing Michelle@thecannabisindustry.org.
And, of course, if your business is not yet a member of NCIA, please join today so that we have the resources we need to prevent any rollback of the progress we’ve made in recent years.
The End of Prohibition in California: An Interview with Berkeley Patients Group
At the conclusion of the first week of adult-use cannabis sales in California, we spoke to Sabrina Fendrick, Director of Government Affairs of Berkeley Patients Group, to get a picture of their recent launch into the adult-use cannabis market. Berkeley Patients Group has been serving patients in the Greater East Bay Area of Northern California since 1999 and is a founding member of NCIA.
Sabrina, what was the process like for Berkeley Patients Group to apply for an adult-use cannabis license in California?
What we got was actually a temporary license, so the process for that is not as onerous or complicated as the annual process. We submitted our local authorization, site plan, and landlord approval. We did this three times, one for adult-use sales, one for medical sales, and one for distribution.
We had to work very closely with the city of Berkeley to make sure we had all of our ducks in a row, which was a little bit complicated because Berkeley had a ban on adult-use commercial cannabis activity. We engaged with the mayor and city council to get a “carve out” for us since we are a Berkeley institution as the nation’s oldest medical cannabis dispensary. We were intensely involved in conversations with regulators like the Berkeley Cannabis Inspector Mark Sproat throughout the whole process. We had it a little easy actually since we’ve been around for many years, as we were established in 1999.
When did you learn you had been awarded the license and how did your team react?
We learned on December 15th that we had received all of our licenses at about 4pm on a Friday, and the whole team was elated. There was perhaps even a little anxiety in wanting to make sure we had everything ready to roll out on January 1 to start offering cannabis to adults in California.
The first few days have been generally pretty smooth. There are a few questions surrounding process and operations to figure out as we go, but the whole roll out process has been smooth. Not a whole lot has changed except we’re getting longer lines, and we’re making sure that our systems are in place to be fully compliant with state law and all of the staff training required to go with that.
What is your reaction to the recent news of AG Jeff Sessions announcing on January 4th to rescind the Cole Memo?
We fully intend to keep serving the Berkeley community and the surrounding area as a state-licensed locally-operated compliant business. Further action on behalf of the Attorney General and the Department of Justice remains to be seen, but we do have support from local politicians and regulators.
We’re confident that public opinion and federal protections will continue to support the will of the voters and states’ rights. The DOJ should be using law enforcement resources to go after real criminals committing real crimes, and not enforcing an outdated, archaic policy that has almost no support from the general public.
As is traditional on the first day of adult-use sales, did Berkeley Patients Group make its first sale of cannabis to anyone noteworthy?
Yes, longtime California cannabis activists Mikki Norris and Chris Conrad were sold the first cannabis purchase in our dispensary. They were both spokespeople for Proposition 64 all the way back to Proposition 215, so it was an honor to make the first sale to people who were actively involved in reforming these laws in California.
VIDEO: 2018 Quarterly Cannabis Caucus event series returns to a city near you
NCIA’s popular Quarterly Cannabis Caucus event series returns to a city near you in January! Watch this video to learn more about the event series and to hear from NCIA members why you should attend. This event is free for NCIA members, and just $50 for non-members.
In this month’s Member Spotlight, we spoke with Marion Mariathasan, CEO of Simplifya. The company provides tools for scheduling, audit management, and tracking issues, giving users a 360-degree view of their compliance. The company was founded in 2016 by partners from Vicente Sederberg, the law firm that led Colorado’s Amendment 64 campaign, and investors with proven track records in tech start-ups.
Cannabis Industry Sector: Information Technology and Software
NCIA Sustaining Member Member Since: October 2016
Marion, tell us a bit about your background and why you launched your company?
I immigrated to Kansas from Sri Lanka when I was 9 years old. I attended both University of Kansas and Emporia State University studying Architecture, Computer Science and Computer Information Systems. After graduation, I took on my first technical role with a medical software company. Since then, I’ve been fortunate enough to have held management and executive level positions with incredible companies – large and small. In addition, I’ve been blessed with the opportunity to have either founded or be involved with many new startup-ups over the years.
Most recently prior to Simplifya, I was one of the founders of a tequila brand. After years of building and distributing the brand nationally, in 2015, we took an exit from the tequila business.
Soon after the exit, I reached out to a good family friend to learn more about the cannabis industry. The good friend happened to be Christian Sederberg of Vicente Sederberg. After a few discussions with Christian and a few others at Vicente Sederberg, it became obvious that the burgeoning cannabis industry needed an enterprise-level software solution to help the highly regulated industry tackle the everchanging compliance needs in a cost-effective and efficient way. After months of discussions and planning, in early 2016, Simplifya was born.
What unique value does your company offer to the cannabis industry?
Simplifya’s Brooke Butler presenting
Simplifya distills complex state and local regulations into a straightforward simple series of yes-or-no questions to generate management and audit reports, identify areas of noncompliance, and hold employees accountable for remediation. Simplifya helps save business owners time and money while providing them peace of mind by staying current with ever changing state and local regulations in real time and streamlining the overlap between jurisdictions and license types.
Simplifya also gives businesses the ability to atomize and store their own customized checklists and SOPs and then assign out those checklists to specific employees enabling companies to monitor business activities and employee performance.
Cannabis companies have a unique responsibility to shape this growing industry to be socially responsible and advocate for it to be treated fairly. How does your company help work toward that goal for the greater good of the cannabis industry?
The cannabis industry at the state and local level has an opportunity to demonstrate that it is worthy of the changes it is seeking at the federal level. There are a number of ways to do this, but creating and maintaining a strong compliance profile is an essential building block. It’s true for regulators, who want to show they are effective with their regulations and enforcement; and for marijuana business owners, who need to overcome the stereotype of being underground operators that don’t care about compliance. By behaving like the best players in other highly regulated industries, and doing things like developing robust compliance programs, actively participating in the rule-making process, and ultimately placing a very high priority on compliance as a path to success, the industry can continue to propel itself toward federal legalization.
Simplifya wanted to be able to provide a simple and affordable tool the industry could use to be able to more easily comply with ever changing regulations and enable them to be able to spend more time focusing on their core business and perfecting their craft.
Why did you join NCIA? What’s the best part about being a member?
One of the first checks that Simplifya wrote when we launched in 2016 was membership dues to the NCIA because we strongly believe the cannabis industry needs strong representation and lobbying power on the national level. We are all working in our own ways to pave the way forward for the cannabis industry and being able to come together as a group of industry leaders with one voice is truly powerful and exciting.
My favorite part of being an NCIA member is the chance to meet all of the other interesting and accomplished men and women that are a part of growing and changing this emerging industry. Many of the NCIA members I met at my first NCIA event shared their own invaluable experiences and insights that helped guide me and Simplifya when we first started this adventure into the cannabis industry. It is so empowering to be a part of an organization like the NCIA that provides forums and regular opportunities for us to help each other grow and succeed.
2018 NATIONAL CANNABIS INDUSTRY FORECAST
Michelle Rutter, NCIA
by Michelle Rutter, NCIA Government Relations Manager
With the beginning of 2018, we start another election year. Multiple states in the midwest are running medical cannabis ballot initiatives, while Vermont is set to become the first state to legalize adult-use cannabis through the state legislature. In Washington, D.C., policy moves at a slower pace, but with Attorney General Jeff Sessions in office, it’s important to remain vigilant. Let’s take a look at what may happen in cannabis policy across the country:
MEDICAL CANNABIS POLICY
UTAH
The Utah Patients Coalition (UPC) is leading a 2018 ballot campaign to establish a medical cannabis program. The initiative seeks to protect terminally and seriously ill patients with specific debilitating medical conditions, including HIV/AIDS, PTSD, and chronic pain, among others. In addition, the initiative allows for caretakers to administer medical cannabis and would issue four types of licenses if passed: cultivation facilities, processing facilities, independent testing laboratories, and dispensaries.
The Chairman of the Senate Finance Committee, Orrin Hatch (R-UT) has introduced a medical cannabis research bill, and has even said on the Senate floor that medical cannabis can be an alternative to opioids. Passing the 2018 ballot initiative in his home state of Utah will be critical to furthering advocates’ work at the federal level.
A recent poll done by the Salt Lake Tribune found that 3 in 4 Utahns support legalizing medical cannabis. The campaign must collect 113,143 signatures from registered voters in order to qualify for the ballot. As of October 2017, the coalition had already garnered 20,000 signatures.
MISSOURI
A group called New Approach Missouri has formed and is in the process of collecting signatures for a proposed constitutional amendment to their state constitution that would legalize medical cannabis. The initiative would create a statewide system for production and sale of medical cannabis and provides for limited and regulated patient cultivation. Interestingly, the initiative levies a four percent retail tax, but all revenue in excess of the cost of regulating the medical cannabis program will go towards Missouri’s veterans.
New Approach Missouri must to collect 160,199 valid signatures from registered voters in order to be placed on the ballot. As of December 2017, the campaign had collected roughly 100,000 signatures. A poll done in 2015 showed that 85% of Missourians support implementing a medical cannabis program.
OKLAHOMA
Oklahomans for Health is the proponent of the upcoming state question SQ788, which would create a medical cannabis program. Obtaining a state-issued medical marijuana card would require a board-certified physician’s signature, though there are no specific qualifying conditions. The measure would enact a seven percent tax on marijuana sales, with revenue financing regulatory costs. Any surplus would be distributed: 75% to the General Fund to be used for education, and 25% to the Oklahoma State Department of Health to be used for drug and alcohol rehabilitation.
The initiative has already qualified, and will appear on the ballot in November 2018. Polling data is scarce, however, a 2013 poll showed that 71% of Oklahomans supported legalizing medical cannabis.
SOUTH DAKOTA
A group known as New Approach South Dakota is behind an effort to legalize medical cannabis in 2018. The group was also hoping to submit signatures to legalize adult-use cannabis, but was unsuccessful. The measure would set an excise tax on marijuana that would include a $50 per ounce tax on cannabis flower for buyers, and would have other taxes apply to buying immature plants and other parts of the cannabis plant.
In November 2017, New Approach South Dakota submitted roughly 15,000 signatures to qualify for the ballot- that’s just 1,000 more than required. The state hopes to review submitted ballot initiatives in the coming months.
ADULT-USE CANNABIS POLICY
MICHIGAN
The Coalition to Regulate Marijuana Like Alcohol has officially submitted ballot language to the State of Michigan that would legalize consumption and possession of marijuana for adults 21 and over in Michigan. The proposal enacts an excise tax on marijuana at the retail level in addition to the standard state sales tax and provides for state regulators to grant business licenses for cultivators, processors, testing facilities, secure transporters, retail stores and microbusinesses.
In November 2017, the Coalition to Regulate Marijuana Like Alcohol turned in more than 360,000 signatures to qualify for the ballot– that’s 100,000 signatures beyond the 252,000 required by the state. Polling done in early 2017 showed that 57% of Michiganders would support legalizing cannabis.
VERMONT
Vermont is poised to make history and become the first state to legalize adult-use cannabis through the state legislature in early 2018. In December 2017, Vermont House Speaker Mitzi Johnson (D) said, “It will be up for a vote in early January. I expect that it likely will pass in early January.”
The state came incredibly close to passing language that would have legalized adult-use cannabis back in 2017, however, the legislature was unable to make changes Governor Phil Scott (R) requested before the session ended. The Governor has since stated that he is “comfortable” with signing legalization legislation.
OHIO
The group that unsuccessfully ran a ballot initiative in 2015 to legalize cannabis in Ohio is making a comeback in 2018. In December 2017, a team announced that they will work to place a cannabis legalization measure on the ballot in 2018. Known as the Regulate Marijuana Like Alcohol Amendment, the measure would allow people over the age of 21 to purchase and use cannabis legally. The amendment would also create a taxed and regulated cultivation, processing, and sales system.
Valid signatures from 305,592 registered voters are required before July 4, 2018, in order to qualify the measure for the ballot.
NEW JERSEY
Unlike New Jersey’s Governor Chris Christie (R) , Governor-Elect Phil Murphy (D) is setting a positive tone on cannabis in the state. Murphy has advocated for legalization multiple times, and even made one of his campaign promises to legalize adult-use cannabis in his first 100 days in office.
Democrats in the state legislature have already introduced multiple bills to tax and regulate adult-use cannabis, predicted to be worth more than $1 billion in the state. The full legalization bill currently being considered is S3195, sponsored by state Senator Nicholas Scutari (D). Sen. Stephen Sweeney (D), the state senate’s president, has already promised to pass the bill within the first three months of Murphy’s administration.
Recent polling shows that over 60% of New Jersey residents support legalizing cannabis.
CANNABIS DECRIMINALIZATION
VIRGINIA
In November 2017, voters in Virginia elected Ralph Northam (D) as their next Governor. Northam made cannabis decriminalization a centerpiece of his gubernatorial campaign, and has even spoken about the hemp cultivation and the medical benefits of cannabis.
Virginia lawmakers considered but did not act on decriminalization legislation during the 2017 session. However, with the State Crime Commission conducting a study on the effects of decriminalization in the state at the request of the Republican Senate majority leader, advocates remain hopeful in 2018.
FEDERAL CANNABIS POLICY
While 2018 is shaping up to be a busy year for cannabis policy at the state level, things will likely move slowly in Washington, D.C. NCIA will be working to ensure language protecting medical cannabis patients (the Rohrabacher-Blumenauer amendment, formerly known as the Rohrabacher-Farr amendment) remains in federal law. NCIA will also be lobbying to expand that language to apply to adult use states (McClintock-Polis amendment) and to include a banking amendment that would allow cannabis businesses access to financial services (Heck amendment).
As leadership in both houses of Congress continue to negotiate the final version of the tax reform bill, there will be opportunities next year for Congress to make additions and changes on future individual tax legislation. NCIA will be looking at any possible avenues to have 280E legislation be included in future bills if the opportunity arises. Action on the cannabis banking bill is unlikely in 2018, however, NCIA will continue to advocate for a committee hearing, gather more cosponsors on HR 2215: The SAFE (Secure and Fair Enforcement) Banking Act, and work to identify a Republican lead sponsor for the bill in 2019.
NCIA will also be working to ensure that the Cole Memo remains in place. Attorney General Jeff Sessions has recently said that the Department of Justice will be reviewing current memos, and that “Guidance documents can be used to explain existing law… but they should not be used to change the law or to impose new standards to determine compliance with the law… This Department of Justice will not use guidance documents to circumvent the rule-making process, and we will proactively work to rescind existing guidance documents that go too far.” While Attorney General Sessions is very clearly personally opposed to cannabis, it’s important to note that personal feelings are not official Justice Department policy.
In addition, NCIA is working behind the scenes to educate the Trump Administration on cannabis policy, maintain the Cole Memo, protect cannabis patients and consumers, and make positive remarks regarding medical cannabis in 2018.
Partner Blog: Ohio’s Medical Marijuana Program Begins Taking Shape
by Thomas Rosenberger, Executive Director of NCIAO
More than a year after Ohio legalized medical marijuana, the first licenses have finally been awarded. The Ohio Department of Commerce ended months of speculation by announcing 12 level II cultivator license winners on November 3rd, and 12 level I cultivator license winners on November 30th.
These 24 winners are now responsible for growing the supply of medical marijuana Ohio’s patients will use, a population estimated to be in the hundreds of thousands. The medical marijuana market in Ohio is expected to be worth $300-400 million once it matures, making the limited number of licenses available immensely valuable.
While we now know who the 24 cultivators will be, Ohio’s medical marijuana program is still nine months away from its September 8th, 2018 deadline to be operational. Processing, dispensary and testing licenses have all yet to be awarded, and already controversy and lawsuits are threatening to derail and delay the program.
It’s a scenario we’ve seen repeatedly in other states such as Maryland, and a scenario for which the industry must work together to prevent in Ohio. The National Cannabis Industry Association of Ohio was formed in July to foster collaboration between members, promote best practices and to serve as the voice of the industry in Ohio.
We’ve spent the past 5 months advocating for the industry and working to provide feedback to state regulators on various aspects of the program. Moving forward, our priority will be on ensuring Ohio’s program meets its statutory deadlines and licensed cannabis businesses are able to begin serving Ohio’s patients by September 8th, 2018.
Now more than ever, it’s crucial the industry come together to ensure Ohio’s medical cannabis program is not delayed. Ohio’s patients have waited long enough for relief, and the industry has a responsibility to ensure they wait no longer.
NCIAO is the Ohio affiliate of the National Cannabis Industry Association, the nations only industry-led organization engaging in legislative efforts to expand and further legitimize the legal cannabis market in the U.S.
Policy Council: The Little-Known – And Critical – Exception To Federal Paraphernalia Laws
This paper was generated by NCIA’s Policy Council. Steve Fox, Policy Council Director, says “the mission of NCIA’s Policy Council is to inform lawmakers and other stakeholders about policy-related matter affecting the cannabis industry. This short paper is an excellent example of that type of work. It is important that we raise awareness about the critical exception to federal paraphernalia laws, under which state-authorized activity is exempt from the provisions of the law. We can debate how that exemption should be interpreted, but we must acknowledge that it exists. This paper furthers that goal.”
NCIA has seen an increase in mainstream companies joining the organization in support of federal cannabis policy reform. Zippo, known for their reusable metal lighters, is an example of one of those companies, so in this month’s member spotlight, we’re checking in with Don Lenny, Vice President of Sales, Americas division, at Zippo.
Cannabis Industry Sector: Cannabis Accessories
NCIA Member Member Since: 2017
Don, tell us a bit about your background as well as your company?
Don Lenny joined Zippo in 2006, and immediately became the force behind leading the North American Sales team. With more than 35 years of sales experience in gifts and accessories channels, Don serves as the VP of Sales, Americas, for Zippo, as well as both of Zippo’s sister companies, Ronson, and W.R. Case & Sons Cutlery Company. In his current role, he is solely responsible for managing Zippo sales in North America, Central America, South America, and the Caribbean; Ronson sales in North America, and W.R. Case & Sons Cutlery Company globally.
One of the most recognized brands in the world, Zippo was founded in the fall of 1932 by George G. Blaisdell in Bradford, Pennsylvania, where it has manufactured over 550 million windproof lighters. With the exception of improvements to the flint wheel and modifications in case finishes, the product remains unchanged and is backed by the company’s famous lifetime guarantee – “It works, or we fix it free.™” Zippo’s diverse product line includes lighters and accessories; butane candle lighters, and a robust line of heat and flame products for outdoor enthusiasts. Zippo markets in over 180 countries, and owns Bradford-based W.R. Case and Sons Cutlery Company and the Ronson family of brands.
What unique value does your company offer to the cannabis industry?
Zippo windproof lighters are backed by an unparalleled lifetime guarantee, and are stylish personal accessories. The lighter surface has been compared to an artist’s canvas, and Zippo offers a wide variety of finishes and designs, including custom, one-of-a-kind pieces on zippo.com. Zippo is internationally known as being a major player in the tobacco accessory industry, and we plan to bring those identical values of high-quality products, coupled with excellent customer service to cannabis consumers as well. Additionally, we are offering the Ronson line along with the Zippo line, ultimately opening the door for us to showcase a variety of products, at a variety of price points, to meet each consumer’s potential need.
Cannabis companies have a unique responsibility to shape this growing industry to be socially responsible and advocate for it to be treated fairly. How does your company help work toward that goal for the greater good of the cannabis industry?
Over the course of the last 85 years, without waiver, Zippo has prioritized meeting exceptionally high and rigorous standards in child safety testing on all of our products, without compromise. In addition, each piece of artwork that is featured on a Zippo pocket lighter is held to unremarkably high customization guidelines. We take pride in not using images, artwork, or slogans that could appeal to young children, as well as not using material that is offensive, including material that glamorizes illegal drug use.
What kind of challenges do you face in the industry and what solutions would you like to see?
As a company, venturing into the cannabis consumer accessory industry is exciting. We see enormous value in being able to offer the same unparalleled quality and customer service that we are historically known for to a new consumer base. However, with the cannabis industry being so new and immature overall, there are certainly a few challenges ahead.
First and foremost, Zippo strives to be a category leader for accessories at retail. Our biggest challenges include understanding what our displays, packaging, and point-of-purchase need to look like for the retail trade, understanding all aspects of distribution to ensure we have the right products in the right stores, understanding what types of product designs consumers want, and lastly, whether they prefer our pipe insert or classic insert when they use our lighter.
You recently joined NCIA, which supports reform at the federal level for the cannabis industry. Why did your company join NCIA?
We saw immense value in joining NCIA, a leading voice for this economically vital segment of consumers. As regulation and consumer attitudes continue to shift, being an NCIA member will allow us to stay well informed on trends and state-by-state policies. We also strive to be known for our excellence in delivering high-quality products and customer service. We hope that our partnership with NCIA will continue to offer us a platform that will allow us to connect with industry leaders, decision makers, business people, and consumers, to continue to aid in helping spread our brand awareness as we continue moving forward in finding our place in the cannabis industry.
Despite the national trend toward legalization and a growing consensus of acceptance among Americans, privacy is still a chief concern among many legal cannabis consumers. And across the industry, no one bears the burden of these concerns more than cannabis retailers.
As a cannabis retailer, you’re pulled in several directions. First and foremost, you’re beholden to state reporting requirements; on the medical side, this means validating recommendation letters and patient identification and storing this information securely.
On the adult-use side, you’re torn between the need to collect certain customer information for marketing and sales purposes and the overwhelming fear and distrust from customers concerning their personal privacy.
It’s a delicate balancing act—and as requirements continue to evolve, retailers need a system in place that’s both functional and flexible.
Determining Your Dispensary’s Needs
As a cannabis retail owner, your number one priority is compliance. And when it comes to patient and customer privacy, you need to determine exactly what your state’s requirements are per your particular operation.
If you’re a medical dispensary, your data security needs are going to be much different from that of an adult-use retailer, and vice-versa. If you run a joint medical and adult-use operation, you’re going to have to find a solution that caters to both.
Legal states have widely disparate laws concerning patient/customer privacy and data collection. For example, Oregon passed legislation earlier this year making it illegal for recreational retailers to keep customer information—such as names, addresses and birthdates—on file for longer than 48 hours.
On the other hand, medical dispensaries need some sort of system for identifying patients and their doctor-certified cannabis recommendations, while both adult-use and medical operations need to be able to track sales to individuals to ensure transaction limits aren’t exceeded.
Finding a Solution That’s Right for You—and Your Customers
Even though state laws mandate cannabis sales tracking and reporting, state agencies are not providing dispensary owners the tools needed to perform these functions in the most efficient manner.
Some statewide reporting solutions offer point-of-sale software that retailers can choose to use. But, as we’ve seen with the ongoing kerfuffle that some states are experiencing with their chosen systems, these technologies are not always the most reliable.
In these instances of statewide system failures and security breaches, what becomes of your customers’ personal information?
Cannabis retailers need a solution that can be tailored to their particular operation—be it medical, adult-use or both—and that is flexible enough to keep up with constantly-changing privacy and information collecting requirements.
Additionally, dispensary owners need to know that in the event the state’s system crashes or is breached, they can record sales using excel spreadsheets or continue ringing sales if their retail software permits all while maintaining their customers’ privacy.
Gary Cohen leads Cova’s charge into the legal cannabis space by guiding the vision, strategic development, ‘go to market’ plans and culture. A Denver native, he recently moved back to establish Cova’s HQ there. While he joined Cova only a year ago, he was a successful business partner to Cova’s parent company since 2011.
Before joining Cova, Gary was a principal in over a dozen tech start-ups in the mobile communications industry ranging from small VC funded companies to Fortune 100 firms, including Onavo, which was later acquired by Facebook. In those companies he lead Sales, Marketing, Business Analytics and Market Expansions. He has also held a multitude of leadership roles with Verizon and AT&T for the first 15 years of the wireless industry.
Gary holds a Degree in Finance with a Masters in Marketing from the University of Colorado.
Policy Council: IRC Section 280E – An Unjust Burden on State-Legal Cannabis Businesses
NCIA’s Policy Council, comprised of industry leaders selected by NCIA’s Board of Directors, play a critical role in the development of cannabis policy at the federal level. The Policy Council recently produced a white paper titled “IRC Section 280E: An Unjust Burden on State-Legal Cannabis Businesses” which is now available in an easy-to-read design with the intention of utilizing this in conversations with policymakers, the media, and the industry.
“Fixing Section 280E of the Internal Revenue Code has been a policy priority for NCIA since its founding in 2010,” said Steve Fox, co-founder of NCIA and director of the Policy Council. “It is therefore appropriate that the fist Policy Council paper is focused on this issue. The information contained in this paper will be useful in lobbying efforts as Congress continues to debate tax reform. In particular, the projections contained in the paper, showing that reforming 280E could actually result in a net increase in tax revenue for the federal government, should be especially eye-opening.”
In November’s Member Spotlight Video, NCIA visits with Rabbi Kahn of Takoma Wellness Center in Washington D.C., a family-owned and operated medical cannabis dispensary, and a member of NCIA since 2014. He tells us about the challenges of opening the business in the Takoma Park neighborhood of D.C. near the Maryland border.
Learn more about Takoma Wellness Center from Rabbi Kahn.
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In recent days, and for the second time in 2018, the state-legal cannabis industry is abuzz over a new memo issued by Attorney General Sessions. Having revoked the Cole Memo in a January memo, the Attorney General’s latest memo addresses the use of capital punishment in drug cases. Notably, he urges federal prosecutors to consider the death penalty in drug cases—including in circumstances that facially could include the operation of large-scale state-legal marijuana businesses regardless of compliance with local rules. 
Second, even assuming a hypothetical prosecutor brought such a case and secured a conviction for the underlying offense, they would still have significant constitutional hurdles. As an initial matter, under the Sixth Amendment, those prosecutors would need to convince a jury in the state where the conduct occurred (and is licensed) that sufficient aggravating factors existed to impose the death penalty. Without getting too deeply into the legal weeds, the U.S. Supreme Court reiterated in 2016’s Hurst v. Florida that before a defendant can be sentenced to death, he has “right to have a jury find the facts behind his punishment.” Convincing a jury of the defendant’s peers in a state where the conduct is legal that the defendant’s conduct warrants the punishment of death would be a tall task for any prosecutor. 
Michael Cooper is the co-founder and managing member of MadisonJay Solutions LLC, the leading regulatory advisor to adult-use cannabis companies. A graduate of Harvard College and Harvard Law School, he previously served as General Counsel of MHW, Ltd., a leading provider of compliance services in the beverage alcohol industry, and in the litigation department of Cravath, Swaine & Moore LLP, known as one of the nation’s premier law firms for nearly two centuries. 
PR salaries can range anywhere from the mid $50,000s to well into the six figures for management. Agencies will structure pricing differently, often with an hourly retainer. PR folks can be stereotyped as offering big promises with few results. Especially in an emerging industry, deep industry experience is uncommon. Experience in the field is a huge advantage as the agency will have already formed relationships with journalists who cover cannabis and will not have as big a learning curve when taking on a new client.
These 24 winners are now responsible for growing the supply of medical marijuana Ohio’s patients will use, a population estimated to be in the hundreds of thousands. The medical marijuana market in Ohio is expected to be worth $300-400 million once it matures, making the limited number of licenses available immensely valuable.
As a cannabis retail owner, your number one priority is compliance. And when it comes to patient and customer privacy, you need to determine exactly what your state’s requirements are per your particular operation.
