Legal and Banking Committee: White Paper – Financial Institutions
By Dana Chaves, Ms. Mary Staffing/Hybrid Payroll
Vice Chair of NCIA’s Legal and Banking Committee
During our inaugural meeting in Oakland California in June of 2017, the Legal and Banking Committee discussed the impending issues impacting the cannabis industry. It was decided that the biggest issue that needed immediate attention was of course banking and the inability for businesses in the cannabis space to obtain and maintain a checking account in order to pay taxes, bills and more importantly payroll for employees.
As a group we decided that writing a white paper and subsequently a supporting PowerPoint slide deck to present to financial institutions, executives and board members in a lunch-and-learn environment would be the most effective way to educate not only financial institutions but also state regulatory agencies as well on how to work together on the best practices for mitigating risks surrounding the Bank Secrecy Act and resources needed for compliance.
It is the hope of the LBC Committee to assist financial Institutions in a nationwide effort to begin the process of protecting the communities where marijuana is legal and by legitimizing the industry by allowing banking and lending services to both business owners and their employees.
In 2008, Michigan voters voted to legalize marijuana for medicinal use. Since 2008, dispensaries have been regulated for operation on a city or township level, and the city of Detroit was more welcoming to the cannabis industry than any other city in Michigan. On the busy street of 8 Mile in Detroit it seems like the neon green cross is on every other building for miles. The dispensaries have not been allowed to apply for a business license and so were not paying state taxes. This put the dispensaries in a gray area with the state. Legal or not, the cannabis industry in Michigan and especially in Detroit has been very lucrative.
In September of 2016 a bill was passed to grant licenses to dispensaries, cultivators, labs, extractors and transporters. Due to this bill, the Licensing and Regulatory Affairs (LARA) is accepting applications on December 15, 2017 for business licenses. The state passing a bill to accept licenses is great news for both the dispensaries and the state. The dispensaries will no longer have to look over their shoulder in fear of being shut down due to operating without a license and the state will receive tax revenue from the industry. However, the honeymoon came to an end when LARA also required dispensaries to shut down their operations effective on that same date of December 15, 2017 or risk being denied a business license. Even still with this plan the licenses will not be granted until the first quarter of 2018. This leaves a potential 3 month gap where the dispensaries will not be generating any revenue and more importantly patients can’t get their medication.
A number of dispensaries have shut their doors already in an attempt to curry favor with the state. Most dispensaries are remaining open to try and make as much revenue as they can before being out of business for an undetermined amount of time. While being out of commission for a few months will temporarily hurt Michigan’s cannabis industry, it is very important that if you are looking to re-open or start a cannabis operation that you fully understand the regulations. Unfortunately many cannabis operations may not be granted licenses and for some dispensaries December 15th will be their last day in business.
On September 21, 2017 the state did answer a big question that many in Michigan’s cannabis industry has been asking since 2016 when the state passed the bill to grant licenses: can one location have multiple licenses?
LARA made the decision that a location is allowed to operate multiple licenses if it meets the following criteria;
The Department authorizes the licenses to operate at the same location
The facility must have separate working areas, entrances, exits, point of sale operations and record keeping systems in place for each license.
The co-location is in keeping with local ordinance or zoning regulations.
The licensees comply with all local and state regulations for building inspection, fire safety and public health standards.
This is great news for Michigan’s cannabis businesses. This means a business can buy just one building and as long as it fits the above requirements their whole operation with multiple licenses can be ran out of one location instead of multiple locations. This will reduce cost and increase profits making the industry more attractive to businesses and investors.
As the December 15th deadline approaches, it is slowly being revealed and realized how the future of Michigan’s cannabis industry will look. As chaotic and uncertain Michigan’s cannabis industry is presently, I am excited about the direction it is headed and the possibilities and opportunities it can provide to my home state.
Please be prepared and don’t wait until the last minute to enter into this exciting new chapter of Michigan’s cannabis industry!
If you are to apply to any of the five licenses, please make sure you review House Bill 4209.
Kefentse Mandisa is a broker at Mandisa Risk Advisors.MRA is an insurance agency and risk management consulting group that provides superior service and products to their clients.
As a specialized insurance agency they provide services to the cannabis industry. This includes dispensaries, cultivators, processors, landlords and physicians to name a few.
MRA being narrowly focused on the industries they have a strong expertise, allows them to better serve their clients.
Survey: Employee Engagement in the Cannabis Industry
Needle Consultants, LLC, presents the Cannabis Industry Employee Engagement Survey
With thousands of employees working in the cannabis industry, the industry has become a significant employer in the states that have legalized cannabis production, processing, and consumption. Ensuring that the industry is creating a satisfying work environment and a fulfilled workforce is key to attracting and retaining top talent and provides certainty to business planning.
Workers today not only seek this sense of purpose within their places of work, but have also been known to accept less compensation, if fulfilled in other ways, offered “nontraditional” benefits, and/or opportunities to engage in authentic community activities.
Marc Ross, Chief Instigator at Needle Consultants
As the leading cannabis industry organization, NCIA desires to see our member businesses thrive, with tens of thousands of satisfied and fulfilled workers, eager to participate and add their talent and passion to our work. We also seek to be an industry that improves the lives of not only our members’ patients, clients, and customers, but their communities.
“I’m really excited to have this opportunity to do a deep dive into employee engagement as it pertains to the cannabis industry” says Marc Ross, Chief Instigator at Needle Consultants, LLC. “It is my belief that by gathering a baseline of this data and identifying opportunities for improvement, we’ll be able to help create a healthier and more satisfying environment for the industry’s workers, which in turn, will elevate the industry overall.”
· 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.
The survey is anonymous.
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.
How long does it take to complete the survey?
The survey takes approximately 5 to 10 minutes to complete.
How long is the survey open? The survey will be open for collecting anonymous responses between now and December 1, 2017.
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.
NCIA visited the Palm Springs & Desert Hot Springs communities in September 2017 to meet and greet with current and future members. At this Member Drive networking event, cannabis industry professionals connect at the local level and reaffirm the importance of staying plugged in to a larger, national voice of thousands.
Member Blog: 3 Typical Challenges Associated with Cannabis Marketing
Although the world is beginning to wake up to the benefits as well as the drawbacks of marijuana, stigma still remains. For that reason, then, businesses who are trying to market the nowgrowing and improving marijuana industry can find that it’s more of a challenge than they would have expected. While some people are happy to look beyond the stigma, many others area little less capable of doing so. This poses particularly unique problems in terms of strategy for the cannabis marketing industry.
What, then, should newbies trying to promote cannabis and marijuana appreciate about the challenges ahead?
The Regulation Challenge
The first problem stems from the challenges of regulation. Given that many government authorities have yet to legalize marijuana, it can still be a challenge to get spotted on search engines. Many marketing programs such as pay-per-click marketingtry to forbid such content, and thus it can be hard to make a push through traditional marketing means when it comes to marijuana.
Some areas are lax, but FDA regulation – amongst other government authorities-still say no. As such, the regulation issue makes it hard to use the most powerful channels to market the message properly.
Brand Identity
In such a specific topic and market, it has become increasingly challenging for people to build what would be a normal brand identity. This means that for most businesses in the cannabis industry, following the typical accepted wisdom of marketing is not quite as easy as it may have once seemed.
It’s hard to get a development and a design that is going to help make sure a cannabis business can grow people outside of those already looking for the topic. The main challenge isn’t so much being spotted, but being able to appeal to people who don’t already use the plant.
One way that is possible is by maintaining ahigh quality blog, where all types of questions are being answered. Another must is having a good “about us” page to show that you are a real company, just like other companies that people might be more familiar with. Lastly, you could always start a museum and work on reaching a bigger audience from there.
Lack of Traditional Opportunity
Another major issue is that the selling of cannabis is hardly a suitable connection to the likes of B2B marketing, direct mail programs, e-mail marketing, broadcast media and various other popular forms of marketing. For that reason, it has become a rather complex battle for businesses to try and overcome. At the moment, there is a major lack of traditional marketing opportunity for those who are looking to try and make their mark as time goes on.
Unsure how to make that stick? The challenges are going to exist for some time. It’s recommended that anyone looking at making themselves part of the thriving cannabis industry realizes that the typical modern forms of marketing have not yet caught smoke in this part of the industry.
It’s very hard to offer the kind of marketing arm that you would expect when it comes to promoting a product with such a splintered history and past. While possible, there is a huge amount of work, planning and preparation needed before those looking to make their first steps into the marijuana industry can ensure their message is both heard and taken seriously.
And, let’s keep in mind: If it’s hard, it means that not many people can make it work, so if you succeed, you’re one of the lucky few and you truly stand out.
Daniel Ramirez is the Chief Marketing Officer for Belladonna Growhouse, a fully licensed i502 producer/processor in Washington State. In addition to his work with Belladonna, Daniel owns and operates a marketing company specializing in online PR, social media marketing, branding and lead generation. Daniel is a graduate of San Diego State University with a bachelor’s degree in Business Management with a focus in Entrepreneurship. Daniel is passionate about normalizing the responsible use of legal cannabis and shedding the stigma associatedwith the plant.
Member Spotlight: The Arcview Group
The Arcview Group, with CEO Troy Dayton
Member Since:
December 2010
Industry Sector:
Professional Services and Consulting, Investment and Asset Management
Tell me a bit about your background and why you launched your company?
Steve DeAngelo and I started Arcview in 2010 because we believed that business would ultimately become the single biggest factor in leading the end of marijuana prohibition — but there was a lack of leadership, professionalism, and scaling knowledge in the sector. We didn’t have all the answers, but we both knew a lot of the right people, so we surmised that if we structured a way for these parties to come together in a curated community around facilitating investment in the sector, we could ignite the power of free enterprise and aim its tremendous power towards political progress and the development of a new kind of industry.
I got my start in cannabis when I was a freshman in college at American University where I was one of the Marijuana Policy Project’s first volunteers in 1995, the year it was founded. I went on to intern for the Drug Reform Coordination Network at the dawn of the internet age where I helped start a project called U-net, which was a list-serve of college drug reform activists. Obvious thing to do now, but then it was revolutionary because it was the first time college activists could find each other and communicate easily. We rallied hundreds of activists behind a fellow student who was being kicked out of college for starting a marijuana policy chapter. It wasn’t long before we realized that it was time to start a more robust student drug policy organization. That began Students For Sensible Drug Policy which is now on hundreds of campuses nationwide and is a major force for political change.
Over the years, I helped start a digital video media company that was a cross between Youtube and Facebook. We raised millions of dollars but ultimately went “dot bust” because we were about 7 years too early with exactly the right idea. Then a few of us from that endeavor started a renewable energy company called Renewable Choice Energy, which was recently acquired by Schneider Energy 15 years later. I spent 3 years working with religious leaders and religious denominations helping them advocate for various drug policy reforms where I could. I spent two years as the Director of Development for the Multidisciplinary Association for Psychedelic Studies (MAPS). Just before I started Arcview I was the lead fundraiser for the Marijuana Policy Project.
I always felt like I had to choose between being part of the next business boom or fighting for what I believed in and remaining poor. I never in a million years believed that my work to end marijuana prohibition would have led to the next business boom. It didn’t occur to me until 2009.
What unique value does your company offer to the cannabis industry?
Arcview is the largest source of investment deal flow in the sector, and the publishers of the most trusted and best-selling market information. Our 600+ high net worth investor members have placed north of $150 million into 160+ cannabis related companies. We are the launch pad for companies seeking capital and mentorship, and for investors figuring out their investment thesis and developing relationships with the people they will need to make the most of this rare economic opportunity. As more investment conferences and pitch contests develop for the sector, and as more traditional investment gatherings start looking at cannabis, I think our biggest differentiator is our incredibly generous community. I’m astounded everyday buy the blood, sweat, and tears that our members put in to help each other and help these companies succeed. Unlike most investment conferences where almost everyone is there pretty much for their own self interest, at Arcview we’ve created a unique environment where people are also there for the benefit of the community, and for the love of the game. And we have a ton of fun.
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?
At every event we have a non-profit working to change the laws give a pitch to the members, and then I ask people to make commitments on the spot. We’ve raised more than $3 million for the cause during these efforts. And when people make their commitments they often say a few words about why. We make it clear at Arcview that if you are investing in this industry, you also need to be donating to the cause. It’s not just good for the soul, but it also make great business sense.
We are also a key place for organizations like NCIA and others that are advocating for good business practices and diversity in the industry. Steve DeAngelo and I both serve on the board of NCIA, and I serve on the board of the Marijuana Policy Project.
I also think that our unique community culture at Arcview helps create a new kind of industry, where people hug instead of shake hands, where they look into each others eyes instead of each others pockets, and where people get to bring their whole selves to their business and not just this plastic old school version of “professionalism.”
What kind of challenges do you face in the industry and what solutions would you like to see?
The very rapid reduction in the wholesale price of cannabis is both a huge opportunity and a huge challenge depending on where you sit and how you look at it. It’s going to be great for consumers, agricultural product creators, landlords and for the legal markets competing with the illicit markets. It will not be kind to small boutique growers and to the amazingly rich culture that has been built around small scale cultivation. There are some great companies helping people transition and coming up with cooperative models that will help boutique farmers compete. There are also efforts to brand those growers and maintain consumer support for more expensive cannabis where they feel connected to the cultivator.
Another big challenge we face is severely limited licensing that only benefits a few. This is particularly a problem in the Northeast, but also in some countries as legalization spreads. Limiting licenses is not a terrible idea if it’s within reason, but there are a few examples where it’s way too lopsided into just a few operators controlling a market. Many people think this is temporary, and that after federal prohibition ends these regulatory structures will loosen up. I’m not as optimistic. When only a very few benefit hugely, they are incentivized to hold on to that structure for dear life, particularly if it is helping to uphold unnaturally high pricing. We could see the federal government leave it up to the states and those states maintain those oligopolies. In fact, I think that is most likely.
But the biggest challenge we face is that people think we have already won and so they are not donating to change laws and they are forgetting that they are right now committing actual civil disobedience and are subject to arrest and imprisonment. Wake UP! If you are already “woke” on this point, then please go “woke” some other people. An industry with a 27% Compound Annual Growth Rate and a ton of enemies needs to be building a powerful and well-funded lobbying effort on the order of the gun, tobacco, alcohol, gaming, and pharmaceutical industries. But we aren’t even close. The fact that we have made so much progress with the tiniest fraction of those industries lobbying budgets is testament to just how right we are and what amazing advocates we have. But we are in the big leagues now and we need to swing like we are in the big leagues.
If you are not donating at least a percent or two of your revenue or amount invested, then you are riding coat tails and you are the reason we have not made additional progress. As the Beastie Boys said so eloquently, “You’ve gotta fight for your right to paaarrrrtaay!”
Why did you join NCIA? What’s the best part about being a member?
I was a founding board member of the NCIA because I believe we need a strong lobby advocating for our interests. I also wanted to make sure that we set the tone that this is not just an industry, but a political movement with social justice aims. NCIA is the perfect expression of those ideals. My favorite part of being a member is being on the board and getting to marvel at the amazing, quirky, fun, and incredibly accomplished women and men that lead this world-changing industry. It’s a true honor to serve along side them as we create jobs, wealth, tax money, health, and freedom.
Greetings from the membership team! With over 1,400 member businesses, NCIA has never been more united! As we go “back to school” this month, we wanted to remind you of all of the member benefit “tools” available to you as part of your membership at any level.
Data Analytics – Stay current with consumer trends and data by accessing BDS Analytics’ GreenEdge data platform. Get in-depth industry market data on cannabis product sales, including product categories and price points.
Free Networking Events – Free admission to our national Quarterly Cannabis Caucus event series will educate, connect, and inspire you and your team, with state and federal policy briefings and meaningful networking opportunities with industry leaders. We’ll be in 8 cities in October, and would love to see you at one!
Share Your Expertise – Contribute to the NCIA blog with a topic of your expertise or be a guest on NCIA’s weekly podcast. Both segments feature on social media and in our regularly monthly newsletter. Member blog posts are educational in nature and directed toward an audience of cannabis business professionals. To get started, email Bethany Moore, NCIA Communications and Projects Manager.
Sponsor an NCIA event –If you’re interested in promoting your business at one of NCIA’s events, please email sponsorships@thecannabisindustry.org for available opportunities.
Be an Expert or Ask An Expert (ECN)– Participate in NCIA’s Expert Calling Network (ECN) where novice industry business owners can turn for compensated advice.
Submit Company News or a Press Release (Member News) – Share your news with the NCIA community by submitting a press release or news story to be posted on NCIA’s Member News webpage. Simply complete a submission form!
Join a NCIA Committee – NCIA’s committees’ work advances the industry in a variety of ways. Applications to be appointed to the 2018-2019 committee term will be accepted in the spring. Committee terms are one year in length and begin in conjunction with the annual Cannabis Business Summit.
NCIA’s membership team is working hard every day to bring new membership benefits to your business. We are excited to share with you what we have planned for the future as we roll out new programs and benefits. Thank you to all of our members for building a responsible and legitimate cannabis industry!
Video: Cannabis Amendments Blocked in Appropriations – now what?
In a late-night vote on Thursday September 6th, the House Rules Committee blocked a full house vote on all cannabis-related appropriations amendments.
Fortunately, Congress passed a Continuing Budget Resolution which does keep the Rohrabacher medical marijuana protections in the budget until December 8th of this year, and more importantly for the long term, those protections currently included in the Senate’s Appropriations bill for the next fiscal year so Congress still has a chance to protect patients and state-legal cannabis businesses in conference committee.
What can you do? Watch the video to hear more from NCIA’s executive director Aaron Smith.
And log on to www.thecannabisindustry.org/SupportLeahy to contact your Senators!
I’m calling today to ask for your Senator’s support of the Leahy amendment to the appropriations bill. This amendment protects medical cannabis businesses and patients in states where it’s legal. It does this by barring the Department of Justice from using its funds to interfere with state legal medical cannabis programs.
This provision has been included in federal law since 2014, and will continue to be in effect until December 8th, 2017 when the current funding bill runs out.
46 states have legalized some form of cannabis. Additionally, over 90% of individuals believe medical cannabis should be legalized and 73% do not support federal law enforcement actions that undermine state marijuana laws.
The cannabis industry supports tens of thousands of jobs, tens of millions in tax revenue, and billions in economic activity in the United States.
Thanks for taking my call, I appreciate you listening to my concerns.
The Future of Medical Cannabis Reform – Now What?
by Michelle Rutter, NCIA Government Relations Manager
Late in the evening of September 6th, the House Rules Committee held a hearing to discuss amendments to the upcoming appropriations bill that will fund the federal government for the upcoming fiscal year. The Rules Committee is used by House leadership to maintain control over the House floor, and is heavily stacked in favor of the majority party (by a 2:1 ratio).
Unfortunately, the committee decided not to allow the Rohrabacher-Blumenauer amendment (formerly the Rohrabacher-Farr amendment) to move forward for a vote on the Floor. Despite the fact that 46 states have legalized some form of cannabis, 90% of the public supports medical marijuana, and over 70% think the federal government should not interfere with state marijuana reforms, the Rules Committee singlehandedly decided to strip out the language protecting states’ medical marijuana laws that have been in law since 2014.
Although this came as no surprise, it is still disappointing. So, what’s next going forward? There are a couple of possible scenarios.
Scenario 1: In July, the Senate Appropriations Committee passed an amendment offered by Vice Chairman Patrick Leahy (D-VT) by a voice vote. The Leahy amendment is identical to the Rohrabacher-Blumenauer amendment and would protect medical cannabis businesses and patients for another year. If this legislation passes the Senate, the opportunity still exists for Congress to reconcile the differences and agree to maintain the current protections in medical cannabis states.
Scenario 2: There are rumors circulating that Congress will pass a funding bill for Hurricane Harvey relief and that this bill would include a debt ceiling increase and continue funding the federal government through mid-December. If this happens, the Rohrabacher-Farr amendment will continue to protect medical cannabis patients and businesses until a new appropriations bill is passed.
Scenario 3: Neither the House or the Senate agree to maintaining this provision, and Congressional protections for states’ medical cannabis laws disappear in the short term. Although this is the worst scenario of the three listed here, the opportunity still exists for Congress to re-insert this provision during next year’s budget negotiations.
NCIA will continue to advocate and communicate with Members of Congress on the behalf of the cannabis industry. While the House Rules Committee has made a disappointing decision, there is still hope that the Rohrabacher-Blumenauer/Leahy amendments will be included in federal law for yet another year. As we continue to represent our member-businesses, we will be vigilant in our efforts to bring about the best possible positive outcome in the current political climate.
Top 5 Amendments To Watch For In Congressional Committee Next Week
by Michelle Rutter, NCIA Government Relations Manager
Every year, Congress must pass appropriations legislation to fund the government for the upcoming fiscal year. This annual budget bill, which is currently set to expire on September 30th, has been one of the only avenues by which pro-cannabis reform language can be inserted into federal law– even if only for a year at a time.
But, like most things in Washington, D.C., the appropriations process is lengthy, complicated, and chock full of procedure.
Early next week, the House Rules Committee will hold a hearing to discuss amendments to the upcoming appropriations bill that will fund the government for FY2018. The Rules Committee is used by leadership to maintain control over the House floor, and is heavily stacked in favor of the majority party (by a 2:1 ratio). Despite that, over a dozen cannabis related amendments have been filed and submitted by various members of Congress, but it is up to the Rules Committee to determine which provisions will be ruled “in order.” Let’s take a look at a few of the amendments that, if passed, could significantly affect the cannabis industry:
Rohrabacher-Blumenauer Amendment: This provision, formerly known as the Rohrabacher-Farr amendment, has been included in the federal budget since 2014. The amendment bars the Department of Justice from interfering with states’ medical cannabis laws and businesses. Those protections will expire on September 30th if this amendment is not renewed. The amendment has 12 cosponsors: seven Republicans and five Democrats.
McClintock-Polis Amendment: First introduced in 2015, this amendment would ban the Department of Justice from interfering with states’ adult-use cannabis laws and businesses. When voted on in 2015 on the House floor, the amendment narrowly failed.
Heck Amendment (1): This amendment would protect financial institutions that choose to service the cannabis industry from interference from the federal government. The provision protects banks in adult-use states, medical cannabis states, and CBD-only states.
Heck Amendment (2): The second cannabis related amendment introduced by Congressman Heck would prohibit any changes to the guidance issued by the Financial Crimes Enforcement Network titled “BSA Expectations Regarding Marijuana-Related Businesses.”
Heck Amendment (3): Similar to the second Heck amendment, this provision would prohibit the Department of Justice from revoking the guidance issued by the Financial Crimes Enforcement Network titled “BSA Expectations Regarding Marijuana-Related Businesses.”
It is important to note that in recent years, House Republicans have essentially shut down the appropriations process by not allowing any controversial amendments (including cannabis) to be ruled “in order”. Just a few months ago, the Rules Committee blocked a measure that would have allowed Veterans Affairs physicians to talk to their patients about medical cannabis in states where it’s legal. Should this happen next week, NCIA will be working closely with our allies and Members of Congress to ensure that the Senate’s version of the budget bill, which does include the Rohrabacher-Blumenauer amendment, is passed into law.
Navigating Congress and all of its procedural quirks can be stressful and difficult, but that’s what NCIA is for. Stay tuned for updates on appropriations throughout September as we continue to watch this process unfold.
Cannabis Industry Sector: Information Technology and Software
NCIA Member Since: July 2016
Tell me a bit about your background and why you launched your company?
My name is Joel Milton and I am the co-founder and CEO of Baker. I’ve spent the last 8 years in the software industry, and have been working with my co-founder and Chief Product Officer, David Champion, for that entire time. Our third co-founder and CTO, Roger Obando, has been a developer for the past 20 years.
The three of us got interested in the cannabis industry in 2014 as adult use was rolling out in Colorado. We saw an opportunity to bring our years of software expertise to the industry as it was coming out of prohibition. We knew there would be a lot of issues specific to the industry, and we saw there were few entrepreneurs with technical backgrounds trying to tackle them.
What unique value does your company offer to the cannabis industry?
We proudly boast that we are on the dispensary’s team.
The Baker team at Representative Jared Polis’s fundraiser. Glenn McElfresh (Business Development) David Champion (Co-founder and CPO) and Roger Obando (Co-founder and CTO)
When we first started, we saw vendors come to the industry to take advantage of dispensaries. They had a misconstrued image of cannabis businesses: safes full of cash, lines out the door, and that businesses couldn’t stock shelves quickly enough. As a company that only serves the industry, we understand real issues like 280e, marketing restrictions, and constantly changing regulations. Due to these misconceptions, many of the early players were charging outrageous fees for basic services (like 10 cents for a text message vs. 1 cent for ours) because few companies were willing to work with dispensaries to begin with.
Additionally, everyone in this space was competing for the same end customer – trying to get them to their dispensary, download their app, go to their website, etc. We saw a dangerous “race to the bottom” on price, and realized there was an opportunity to help dispensaries engage with their customers directly.
Today, we help more than 500 dispensaries in 14 states build their brand, connect with customers, and generate more revenue. We are on the dispensary’s team and our goal is to make them have more successful businesses. We are a true business to business cannabis tech company, and we take pride in showing our clients the ROI they see by using our platform.
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 have been NCIA members for over a year now, and have made sure to contribute not just money but time as well. We send our regional reps to quarterly NCIA caucuses all over the country to keep a pulse on local and national initiatives to see where we can help. We also try to attend and sponsor cannabis events in the regions where we operate and beyond.
In the next month we will be attending events on both coasts, and at a few cities in between. We will also have a booth at the California Cannabis Business Conference (booth 204) if you will be there please swing by our booth or send us an email (marketing@trybaker.com) to set up a time!
We take pride in the professionalism we bring to the industry, and are constantly bringing a mainstream approach to the way we operate – from hiring people out of Fortune 100 firms into the industry, to building quality software products that’s on par with anything coming out of Silicon Valley. Our toolset is uniquely specific to help cannabis brands and retailers run better businesses. We have been approached by retailers in other industries, but our entire focus is on cannabis.
We also work with mainstream investors – many of whom are getting their first exposure to cannabis. It has been such a rewarding experience to promote the industry to influencers who can propel the industry forward with investment and leadership.
Lastly, we also are proud to have brought a lot of public and positive press to the industry. In the past year we have been featured in publications like Business Insider, Forbes, Fast Co, and dozens of others. We position ourselves as a professional company, creating jobs in our headquarters of Denver. We have 35 full-time employees and counting!
Our exposure in the mainstream media has helped millions of readers from around the country learn about cannabis in a more positive light. They can see that there is a large degree of professionalism in the industry and that it would not be a bad thing if it came to their backyard.
How do recent advances in technology, and how we use it, impact the growth and direction of the cannabis industry?
We believe this is a big industry and we have a responsibility to enhance the cannabis ecosystem – when companies cooperate, the sum is greater than its parts.
We are proud of the integrations we have with fellow members of NCIA. We work with POS companies like MJ Freeway, Green Bits, Treez, and Flowhub, as well as data companies like New Frontier (we contributed to their Report earlier this year).
Additionally, retailers across all industries have invested a lot in bringing their shopping experience into the digital age. Cannabis retail should be on par with other shopping experiences, and by providing beautiful, easy to use products, we can help make cannabis more accessible to a larger audience.
We are proud to bring retailers a modern experience that has been called the “shopify of cannabis.” We enjoy hearing stories from our clients about how our products have helped customers see that the stigmas around cannabis shopping are dissipating.
Baker at NCIA Lobby Days. Eli Sklarin (Director of Marketing) Carter Davidson (VP of Sales) Joel Milton (Co-founder and CEO) and Geoff Hamm (COO).
Why did you join NCIA? What’s the best part about being a member?
We are big believers in NCIA, it is an important group with a fantastic mission. I went to Lobby Days along with our COO, VP of Sales, and Director of Marketing. We were all impressed with how organized the experience was.
There is something special about getting the cannabis conversation started with influencers. Most staffers would be hesitant to bring it up, but if you go in-person and inspire confidence in the industry, you can watch the ball start rolling and it was very rewarding to be a part of that.
In an increasingly hostile marijuana environment championed by Attorney General Jeff Sessions, tracking of marijuana from “seed to sale” is more critical than ever. All other threats aside, if you can’t document it, you’re in trouble.
And, that’s not just at a federal level. In an effort to document total compliance and control of this rapidly-growing industry, states have taken it upon themselves to require comprehensive due diligence from all cannabis purveyors.
Forbes magazine addresses this in a recent article entitled, “Tracking America’s Cannabis Industry Through Big Data.” Citing Colorado, the article states in part, “This harnessing of an information technology to track the cannabis market is key to Colorado’s forceful march towards creating a thriving legal marijuana industry. Crucially, the state’s ability to use tracking and Big Data could provide a reference point for other jurisdictions interested in the regulatory potential offered by tracking. This ‘closed loop’ ‘seed to sale’ inventory tracking system embodies a ‘full traceability’ mode…”
The article continues, “The use of tracking as a regulatory device is expanding, operating in Oregon, Maryland and Alaska. There are other cannabis tracking companies such as MJ Freeway operating in Nevada and BioTrackTHC in Washington, New Mexico, Illinois, New York, and Hawaii. After all, tracking is part of day to day life. We track parcels and Uber drivers with our phones while retailers track us through those pesky cookies on our computers. Whatever the context, whether it is a regulator or us doing the tracking or whether it is marijuana or us being tracked, the technology is an essential part of contemporary commercial and regulatory life.”
Cannabis Barcode labels to the rescue An established staple in retail and inventory environments, barcodes/QR codes facilitate trackability. Now that message is resonating in the cannabis industry. A primer in motherboard.vice.com points out, “Walk into any licensed cannabis grow op in Colorado and one of the first things you’ll notice are the barcodes.” They point out in another article, “There are a number of advantages of having a bar code for cannabis growers, producers and retailers. The most important is proper inventory control – which is mandated, in Washington, by the Washington State Liquor Control Board. Having bar codes on inventory items allows rapid identification of specific SKUs. The likelihood of inventory quantity irregularities is greatly reduced.”
They also emphasize, “The reasoning behind implementing these cannabis surveillance systems is pretty straight forward. Since cannabis is still illegal on a federal level, the burden is on the states that have legalized weed to prove that legalization has not aided black market activity.”
Systems spring up to support tracking Regardless of what type of cannabis tracking label is used, sophisticated systems are springing up to oversee the entire process. An article in the Cannabis Industry Journal entitled “The Importance of Traceability” cites insights of Cody Stiffler of BioTrackTHC, one such system, at a Cannabis Labs Conference in 2016: “The primary goals of a traceability system, according to Stiffler, are to prevent diversion and promote public safety. Our software helps get safe products to patients and consumers in a responsible manner. BioTrackTHC’s tracking software covers everything from seed to sale, involving regulatory bodies in oversight. In the beginning of cultivation, each plant is assigned a bar code or sixteen-digit identifier.”
While “location, location, location” is the driver in real estate, “tracking, tracking, tracking” is the name of the game in the cannabis industry.
Mark Lusky is a marketing specialist who has worked with Lightning Labels since 2008.Lightning Labels uses state-of-the-art printing technology to provide affordable, full-color custom labels and stickers of all shapes and sizes, along with barcode labels and consecutive numbering. From small orders for individuals, to the bulk needs of big businesses, Lightning Labels is equipped to handle and fulfill custom label and sticker projects of all types. Lightning Labels was established in 2002 and based in Denver, Colorado.
New Member Benefit: Group Health Options – Minimal Essential Coverage (MEC)
Typically, benefits and cannabis mentioned in the same sentence refer to the qualities medicinal marijuana provides patients and those suffering from numerous maladies.
But benefits can mean so many things, for instance health coverage benefits. The hottest topic in Washington these days revolves around health benefits: repeal, replace, or just repeal. In any event the result is confusion for the employer and employee. What will be the law?
It’s interesting though, that no one is talking about the positive and creative benefits that were born during the “Obamacare” era. Minimal Essential Coverage (MEC) programs were birthed and flourished for the past 4-years. Some of the plans were and are lousy for employees… they cost $50+ per month and provided only one prevention visit to a doctor. Hardly enough. Some of the plans defy logic because you get so much coverage for so little money! So, how do you find those benefit rich plans… just turn to the NCIA’s exclusive relationship with ProducerHub’s Apex suite of MEC products.
Buy Apex products and support NCIA’s efforts to support your business and the Cannabis Industry. Apex donates money back to NCIA every time an NCIA member company buys Apex.
More of that later, something else happened along the way as “Obamacare” matured. Small and mid-size businesses used MEC benefits to attract new and more skilled employees… their businesses were strengthened by the new employees accepting the work and opportunities because benefits were being provided.
So, the better the benefits, the better the employee. Imagine, what a concept… keeping good people relies on creating and sustaining a safe and considerate workplace. Affordability is essential, and a plan that offers a RARE 4-year rate cap* requires everyone’s attention. That same plan only requires 4 employees to sign up… another RARE benefit.
As an employer in a “gold rush industry” you need to ask yourself how important is your credibility? Are you a more credible company by offering benefits? Are you more trustworthy and therefore, a better option for an employee in a competitive marketplace?
Expand the meaning of benefits for you and your employees. See and find Apex’ products, and by doing so, support NCIA’s mission.
Continuing the Momentum – Q3 #CannabisCaucus Events Unite NCIA Members During Successful Summer
by Brian Gilbert, NCIA Events Manager
NCIA and our dedicated members have been keeping busy during the Summer months, and July was no exception as our acclaimed Quarterly Cannabis Caucus event series returned with numerous editions held across the country in both new and familiar locations.
We took these opportunities to further connect with and update our network on the incredible positive energy exhibited by our members and supporters throughout the summer including:
• The 4th Annual Cannabis Business Summit, our most highly attended & well publicized event to date. Read and watch more highlights from the #CannaBizSummit here.
• The 7th Annual Cannabis Industry Lobby Days, our most impactful advocacy-focused event. This Summer, following our trip to D.C., we have seen a substantial increase in the number of co-sponsors on cannabis-related legislation we focused on in May.
Huge thanks to our nearly 900 individual supporters, 400 member businesses, 8 sponsors, 5 guest speakers, and 2 state affiliates that joined us throughout July for our Quarterly Cannabis Caucus event series. Continue on to review event highlights from our Q3 events with photo coverage from our Colorado and Midwest events, and view the full album on Facebook here.
In our first week, NCIA’s hosted our first event in Maine, and it was a smashing success! Attendees were caught up to speed on how the landscape has been developing with implementation of the adult use initiative passed last November by David Boyer, the Maine Political Director of Marijuana Policy Project.
In addition, our Washington members and supporters were joined by guest speaker Rep. Roger Goodman (D- 45th District) who provided attendees with a Washington Legislative Update.
At the end of the week, we had yet another record setting event in Colorado! Just over 200 cannabusiness professionals joined us for an inspiring evening of networking and information sharing. The event was extra special as we were joined by newly elected members of our Board of Directors; Christie Lunsford of Pro MAX Grow and Endocannabinoidology, Sean McAllister of McAllister Garfiled P.C., and Shannon Fender of Native Roots Colorado.
In our second week, we hosted our Tri-State event in Brooklyn, NY where special guest Dylan Schwartz, Candidate for New York City Council in the 51st District of Staten Island provided a New York Legislative Update and explained the history and importance surrounding his cannabis friendly candidacy. In Oregon, we returned to Portland where we hosted Jesse Sweet, Administrative Policy & Process Director of Oregon Liquor Control Commission at ecotrust once again.
In our final week, we were excited to hold our first-ever event in San Jose, CA, at our Northern California Caucus, as well as officially welcome the new Executive Director of the California Cannabis Industry Association, Lindsay Robinson! In Southern California, we moved our caucus to San Diego and Josh Drayton, Deputy Director of the California Cannabis Industry Association provided attendees with an in depth update on the current status of MAUCURSA. We concluded our Q3 #CannabisCaucus series in the Midwest with an inaugural event in Columbus, Ohio where we also officially launched our newest state affiliate, the National Cannabis Industry Association of Ohio. In addition to an optional, pre-caucus tour of member business Apeks Supercritical, attendees were also treated to hearing from State Senator Kenny Yuko (D-25th), a lead proponent of the recently passed medical cannabis legislation.
We hope you join us for our final Quarterly Cannabis Caucuses of 2017 in October! As a show of appreciation for the continued support of these community building efforts, we’re pleased to announce that we’ll be offering an exclusive early bird rate for all those who register in the next week! Secure your spot before August 24th to receive 50% off admission, this includes non-member tickets and additional tickets outside of those allotted to current NCIA members businesses. See below for a full list of dates, locations & venues:
Washington – Georgetown Ballroom – Seattle, WA – Tuesday, October 10 – REGISTER NOW
Northeast – Providence Biltmore – Providence, RI – Tuesday, October 10 – REGISTER NOW
Colorado – The Riverside – Boulder, CO – Thursday, October 12 – REGISTER NOW
Oregon – The Kennedy School – Portland, OR – Tuesday, October 17 – REGISTER NOW
Tri-State – [Venue TBD] – New York City, NY – Tuesday, October 17 – REGISTER NOW
So. California – [Venue TBD] – Los Angeles, CA – Thursday, October 19 – REGISTER NOW
No. California – Hyatt Vineyard Creek – Santa Rosa, CA – Tuesday, October 24 – REGISTER NOW
Midwest – The Robey Hotel – Chicago, IL – Thursday, October 26 – REGISTER NOW
As always a huge thanks goes out to all our sponsors, media partners, and event hosts that continue to support the growth of this thriving community and which made Q3 another success! Follow the links below to learn more about each of these amazing businesses or groups then reach out to see how they might be able to help you with your cannabis industry needs.
Granting credit has not yet become standard in the cannabis market, but as discussed in my article “Trade Credit in Cannabis,” published in the May issue of mg, I believe it will be in the future. Therefore, it is important that a company create a credit policy to define how it will manage its credit and collection processes and evaluate credit risk. Once that is accomplished, the next, and most important, step is to develop a credit application.
Why do you need a credit application?
A credit application provides basic information about a customer’s business and offers measures of protection that will increase the ultimate collectability of an account if the customer doesn’t pay. Companies in the cannabis market may aid their collection efforts by requiring all customers, even those that are on cash terms, fill out a credit application. I cannot emphasize enough how many times my firm, AG Adjustments (AGA), has been successful in recovering a client’s past-due monies because the clients took a proactive approach and obtained a well-drawn-up credit application.
The credit application is one of the primary tools available for protecting a company and controlling credit risk when extending trade credit to customers. Remember, taking a check from a customer is a form of credit. Even customers who are paying cash on delivery should fill out a credit application.
What is a credit application?
A credit application is a contract between seller and buyer. A good credit application will benefit the seller; a bad one, the buyer. Therefore, it is important to be certain the credit application, whether electronic or on paper, contains all the safeguards and guarantees available to reduce risk.
Securing a credit application does not guarantee payment, but it is one of the more significant documents to assist in making good credit decisions and ultimately collecting past-due accounts receivable and associated collection fees. The adage “the sale is not complete until the money is in the bank” is as true today as ever. A good credit application will assist in getting money into the bank.
What do companies selling into the cannabis market need to know to control credit risk?
A credit application is the first step in gathering information about potential customers. Even if customers pay in cash, the day will come when that system changes, and getting information about accounts at the start of business relationship is key. The more you know about its debtors, the better. In addition, collecting credit information will make it easier to determine exactly how much credit to extend a customer.
Never assume all information on the application is correct. Verify the information provided before granting credit. The sales department must make sure every customer fills out and signs a credit application prior to delivery of any goods or services, even if the customer is paying C.O.D.
A credit application serves two purposes: It is a data-gathering tool and a contract. As a contract, it specifies the rights and obligations of both the customer and the creditor. The application should be written in a way that provides the creditor an advantage if business relationship with the client falters. As the saying goes, “Credit is not a right but a privilege.”
Verifying the credit application
The first thing to do once an application is obtain a commercial credit report from a leading credit bureau such as Dun & Bradstreet or Experian. Many prospective customers may not have a lengthy credit history, but that will change as the cannabis industry moves forward. Contact at least three trade-credit references, as well as the applicant’s bank, to verify the existence of accounts. Be sure all references are legitimate, or at least exist if one or more are difficult to contact. Any false information on the credit application is a strong indicator the potential customer may not be reliable. If the buyer is looking for a substantial credit line, review their financials, especially a statement of cash flow. If the applicant is operating in a negative cash position, ensure they will have enough cash available to pay their debt. Limit their credit line or, at the very least, modify payment terms if it seems an applicant may have a cash flow problem.
After credit is extended
Periodic credit reviews are a necessity. Account defaults arise with existing long-term customers as well as new ones. Customer credit limits should be reviewed periodically—at minimum, once a year. Obtaining current credit bureau reports about the largest customers annually is a good idea. Stay on top of aging accounts receivable. If a customer is always sixty to ninety days past-due on part of their balance, they are only one period away from becoming a problem.
When trade credit becomes the norm in the cannabis industry, asking a new customer to fill out a credit application will become standard practice. Currently, this is not the case in the cannabis industry; nevertheless, AGA recommends companies operating in the market implement sound credit policies and processes now in order to prepare for the near future.
Sam Fensterstock is the SVP of Business Development at AG Adjustments, a leading provider of 3rd party commercial collection services and a member of the NCIA’s Finance & Insurance Committee. Sam has spent his entire business career as an entrepreneur and senior executive in the commercial credit & collection space. He has been a founder and played a key role in the dynamic growth of several leading niche commercial credit risk management companies and is considered an expert in the order to cash and credit and collection process. Prior to joining AG Adjustments, Sam was the Director of Business Development at PredictiveMetrics, a statistical based credit and collection scoring and modeling company that he helped grow and sell to SunGard (FIS) in 2011. Sam can be reached at samf@agaltd.com or 631-719-8096.
Photo Credit: Cafe Credit via Flickr, under the Creative Commons License
Video: Member Spotlight – A Therapeutic Alternative
Based in Sacramento, California, this month we meet Kimberly Cargile, director of the medical cannabis dispensary A Therapeutic Alternative, focused on holistic healing and patient support. Learn more about how her dispensary has integrated and become a part of the local community. They also offer additional holistic services such as yoga, massage therapy, sound therapy, meditation, and more.
Member Spotlight: GENIFER M
This month, we’re highlighting long-time NCIA Member and cannabis advocate Genifer Murray, who recently launched her line of luxury cannabis-themed jewelry, GENIFER M, with the aim and intention to “elevate the conversation about cannabis through artisan jewelry.”
Cannabis Industry Sector: Accessories/Products
NCIA Member Since: 2012
Tell me a bit about your background and why you launched your company?
I launched GENIFER M to start the conversation about cannabis. With more than seven years of experience working in the cannabis industry, I have always been passionate about educating the public on the positive power and healing benefits of cannabis; GENIFER M is luxury cannabis inspired jewelry that aims to do just that through artisan jewelry.
My cannabis career started in 2010 when I co-founded one of the first cannabis testing labs in the U.S., CannLabs based in Colorado, where I was one of the first female CEOs in the cannabis industry. My passion and role as CEO became to be a champion for health and safety for patients. My mission with CannLabs was to provide safe and quality medicine to cannabis patients, which resulted in a bigger mission: to help others and the larger community that need this medicine through lobbying for its legalization. While lobbying, I wanted to better represent the cannabis industry and make a statement that illustrated cannabis in a non-threatening and elegant way. As a result, GENIFER M was born.
My dad, Glenn Murray, a technically trained and internationally recognized gemologist, made me a 2.5 carat diamond pave indica leaf lapel to wear with my suits while I was lobbying with NCIA and the Governor’s Task Force for Amendment 64 (ending marijuana prohibition). I wore the pin everywhere and could see it was not only changing minds, but starting conversations with people that traditionally wouldn’t openly discuss or inquire about cannabis. The pin created a movement, creating a non-threatening space for educating consumers about cannabis and its benefits. GENIFER M is an extension of that conversation and was launched to change the way people perceive, interact, and experience cannabis through luxe style and handcrafted quality jewelry.
What unique value does your company offer to the cannabis industry?
Our company is extremely unique in the fact that we are using a lifestyle to start the conversation about cannabis. GENIFER M creates luxury fashion that empowers, educates, and elevates the conversation about cannabis and what it means to each person who wears a leaf. Each GENIFER M cannabis inspired jewelry piece is designed to open discussions about topics of cannabis in a non-threatening way; we aim to create a space in which you can fully express your beliefs, hopes, and passion for the healing properties of cannabis with the mission to make a difference in people’s lives. It shatters traditional perceptions of cannabis to reverse 90 years of the propaganda in mainstream culture.
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?
As business owners in the cannabis industry, we each have a responsibility to move this industry forward in the best manner possible, which is why GENIFER M is the alternative to mass production and traditional cannabis perceptions. We believe in the higher side of purchasing power and style — and making a difference in people’s lives through cannabis inspired jewelry. At GENIFER M, we want to give you the power to share your story and lead you to a lifestyle that embraces what cannabis means to you while honoring the progression from “pot culture” to “cannabis couture.”
What kind of challenges do you face in the industry and what solutions would you like to see?
There are several challenges like no traditional banking, the 280E tax problem, and of course the stigma, which still has a lot to do with why people are hesitating in the decriminalization of marijuana. However, we need more science to overcome the myths and stigma surrounding cannabis! We need the studies, clinical trials, and research. Thankfully the U.S. is finally allowing some of that to take place. I also see pharma as a huge challenge. As a cannabis community we need to work together to help end the pharma era and provide people with natural and holistic medicine — not synthetically made or chemically compounded products. Ultimately, creating platforms for cannabis education is the key to overcoming the challenges this industry faces
Why did you join NCIA? What’s the best part about being a member?
I joined NCIA because we needed a national voice to be heard in D.C. I wanted to help educate lawmakers and the public about the issues challenging the industry, to help prepare for the issues that nobody knew about back in 2012. I also joined because the NCIA community and its members provided me support through my cannabis entrepreneurial journey; they knew exactly what I was going through and became a great network founded on the mentality of helping each other grow and succeed. We are all working together to pave the way for the industry.
For more information about GENIFER M, or to purchase its products and help start the conversation about cannabis, please visit www.geniferm.com.
It’s fair to say that most businesses will have a higher rate of success when they utilize tools designed with their industry in mind. Running a retail operation in the cannabis industry is no different. In fact, the success rate is likely much higher due to the strict regulations put in place by states to address diversion, public safety and health concerns.
With that in mind, I think it’s safe to say that a cannabis point-of-sale system is one of the most important investments a retail operation will make when opening a dispensary. The right point-of-sale system will not only help operators maintain compliance, but it should also save time and money by providing inventory insight, maximizing sales per customer, and seamlessly integrating with other technology.
In addition to streamlining operations, dispensary owners should also feel confident that customer information is secure, and that fast transaction time is maintained even when traffic is heavier than usual. At the end of the day, your cannabis point-of-sale system should work for you.
Let’s be honest, today’s market is crowded. Dispensary owners now have more than 40 point-of-sale options that promote their ability to optimize operations, acquire new customers, and maintain that customer base. But there are only a few key players who do well in this space, and each of them has pros and cons.
As the industry grows, we want dispensary owners to know that not all cannabis point-of-sale systems are created equal. It’s critical that you take the time to examine each tool to determine what will work best for your operation, be it full vertical or one dispensary location.
That’s why my team and I created a guide as a primer on point-of-sale tech for both new and veteran dispensary owners. We’ve researched information from across the spectrum and organized it into categories to help you navigate this major piece of the dispensary ecosystem.
Gary Cohen, CEO of Cova, 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. In his spare time Gary enjoys skiing, mountain biking, outdoor sports, travel and comfort food.
By The Numbers: NCIA Members Make It Happen In The Halls Of Congress
by Michelle Rutter, NCIA Government Relations Manager
While 2017 has had some political unknowns, one thing is for sure: cannabis legislation in Congress has more support than ever — and NCIA members have helped make that happen.
In mid-May, NCIA held its 7th Annual Cannabis Industry Lobby Days in Washington, D.C., where 250 industry professionals came together on Capitol Hill to attend more than 300 scheduled meetings. Since then, there has been a substantial increase in the number of cosponsors on cannabis-related bills compared to the last congressional session.
Last session, during the 114th Congress, Rep. Ed Perlmutter (D-CO) introduced the Marijuana Businesses Access to Banking Act, which would have created a safe harbor for financial institutions to serve marijuana-related businesses. At the end of the two-year session, the bill had 39 cosponsors.
Earlier this year, during the 115th Congress, Rep. Perlmutter introduced his new bill, the Secure and Fair Enforcement (SAFE) Banking Act (H.R. 2215). That bill currently has 47 cosponsors with nearly a year and a half left in the session to gain more support. Since NCIA’s Lobby Days in May, the SAFE Banking Act has added 18new cosponsors.
There has also been a substantial increase in the number of cosponsors on the House of Representatives bill that addresses the 280E tax problem. Last session, Rep. Earl Blumenauer (D-OR) introduced the Small Business Tax Equity Act, which ended the session with 18 cosponsors.
This year, NCIA was successful in helping secure Rep. Carlos Curbelo’s (R-FL) leadership on the Small Business Tax Equity Act of 2017 (H.R. 1810), which has been instrumental in gaining the 25 cosponsors the bill currently has. That legislation has gained 13new cosponsors since NCIA’s annual Lobby Days.
In addition to an increase in cosponsorship of cannabis-related bills, there’s also been an uptick in support for appropriations amendments at the committee level. At the end of July, the Senate Appropriations Committee adopted an amendment that would allow the Department of Veterans Affairs (V.A.) to recommend medical cannabis in states. That amendment passed by a vote of 24-7 — the most votes this measure has ever received in the Senate.
As the appropriations process continues through the summer, it’s likely that more cannabis-related amendments will be brought up and voted on, including votes dealing with protections for medical marijuana businesses and banking. NCIA is confident that if congressional leadership allows these measures to be voted upon, they will receive unprecedented levels of support.
The industry’s united voice makes a difference on Capitol Hill, and it can be seen in the numbers. To learn more about NCIA’s annual Cannabis Industry Lobby Days, you can click here.
Member Blog: “Don’t hate me because I’m beautiful!” (part 2 of 2)
Celebrating excellence in branding, packaging and marketing within the cannabis industry
In part 1, we explored the development of the Canndescent brand and the steps they took to launch that gorgeous canna-business. Today, we turn our eyes to hmbldt, one of the most stunning brands to recently burst upon our burgeoning industry.
Last November, while walking through the MJ Business Expo in Vegas, one exhibit caught my eye. hmbldt. Actually, I couldn’t take my eyes off their logo. It was stunning in its simplicity. The one thing I can say about these guys is they don’t like vowels. Just kidding. They fricken’ nailed it!
I loved the contemporary clean lines, the white space and the naming-by-effect convention. The packaging itself was a very well executed combination of color-coded rigid boxes with inserts, and folding carton sleeves.
When I see great work, I get excited! I know, I know… I’m just a branding and packaging geek, I can’t help myself!
Recently, I got a chance to talk to Derek McCarty, CMO of hmbldt, regarding their brand development. He credits their creative partners, Anomoly (2017 Agency of the year – Ad Age) with not only their brand and packaging development, but also the product development. “They are true strategic partners in every sense of the word,” he said. In fact, the agency has a stake in the company, as well as its founding member sitting on hmbldt’s board.
The first employee hired by hmbldt was Derek McCarty, a seasoned brand strategist. Hmmm… with priorities like that, no wonder hmbldt launched at the top of the heap. And it didn’t hurt that Time Magazine named their innovative vaping device one of the Top 25 Inventions of 2017.
“We launched in September and received the award in November. Of course, the award added credibility to the product and propelled sales throughout the state quickly. While we were extremely pleased with the award, we were elated that mainstream media led with the health benefits of cannabis in this instance,” Derek told me.
When asked how long it took to develop the brand, McCarty replied, “Our brand is a living, breathing, dynamic thing… the development will never stop. The hmbldt brand is the sum of all parts.”
And those are very nice parts, indeed.
Discussing his favorite cannabis brands, Derek cited Lord Jones and DeFonce as his favorites for product positioning, and Jetty and Bloom Farms as his choice for best benefit positioning. Adrian from Canndescent also touted Bloom Farms for strong messaging and PAX for overall brand and product positioning.
When I look at amazing brands like these, I like to believe there is something we can learn from them. I asked Derek what advice he would give to a fellow canna-prenuer on building a great brand. “Be creative in how you find strategic partners,” he said. “Look for a mutually beneficial, great value exchange. As with any great partnership, it must be a win-win for both sides.”
Adrian offered this advice. “Hold yourself to a simple standard that begins with compliance. Build a solid platform and write a good business plan. With that in place, the money and great people will follow, allowing you to create your own unique brand that solves a problem,” he said.
A world-class brand doesn’t just happen… let alone two. I’ve learned from these brands that they have succeeded by paying close attention to the details and focusing on quality in everything they do, in everything they touch. They chose their partners carefully and began with a compliant platform.
I am grateful to each of them for creating beauty in a rather barren landscape. For giving us greatness to aspire to and for helping to elevate the image of our industry just by entering it.
Thank you!
Kary Radestock, CEO, launched Hippo Premium Packaging in March 2016 offering an array of services to the cannabis market, including: Marketing Strategy, Brand Development, Social Media, Public Relations, Graphic and Web Design, and of course, Printing and Packaging. Radestock brings over 20 years of award-winning print and packaging expertise, and leads a team of the nation’s top brand builders, marketers and print production experts. Hippo works with businesses looking for a brand refresh or an entire brand development, and specializes in helping canna-business get their products to market in the most beautiful and affordable way possible. Radestock’s Creative Collective of talent and experts, allows her to offer world-class solutions to support the unique needs of the Cannabis Industry.
Member Blog: Financing Options for Cannabis Businesses – How to Plan, Prepare and Present
Most business owners in the cannabis space will experience the need for capital to start or expand their business. While there are a variety of options when it comes to financing, there are a few important keys to being a smart borrower.
I speak frequently about the need to start the financing process off on the right foot. As a veteran of the commercial finance industry, I have helped dozens of cannabis businesses secure capital. The most common types of financing requests we see are for equipment, working capital, or real estate loans. I believe there are three P’s critical to getting financing to launch or grow your marijuana business: Plan, Prepare and Present to the right people.
Plan
During the planning phase, consider whether you’ll be seeking debt or equity. To understand which funding sources may be the best fit, start by asking yourself several questions. What will the money be used for? How much is required? What is the timeline to be able to repay the loan?
After answering a few important questions about your business and researching the types of financing sources available, decide whether a debt- or equity-based funding source is the best option.
Keep in mind, lenders look at things very differently than investors do. By nature, lenders are focused on the return on their investment with regular payments over a period of time at a set rate. This is different than an equity investor, who has a longer time horizon to be repaid and is seeking a significantly higher return on capital.
Prepare
Next, gather your financial documents, including your credit report, tax returns, personal financial statements, and any current company financials.
Consider having a CPA review or audit your financials before your meet with prospective lending sources, especially if you are considering debt-based options. Lenders are specifically interested in your balance sheet, income statement, and liabilities to confirm that you have the ability to repay your loan.
Once you have prepared your documents, it’s time to start formulating your business plan and executive summary for your presentations. An effective executive summary is a concise one- to two-page pitch describing your business, the funding you are seeking, and how the funding will be used. A 10-point guide to creating an effective executive summary is available here.
Present
Before you can present, you must have a solid grasp on your audience, which is why it’s important to determine early on the type of financing that may be suitable for the stage and trajectory of your business.
After identifying the appropriate financing source(s), it’s time to prepare for meetings. With your executive summary, business plan, and financials documents in order, you will be in a better position to make a good impression and obtain the funding you are seeking.
In my experience, answering questions directly and providing information quickly when requested are two keys to a successful meeting with a potential financing source. Lastly, ask thoughtful questions, such as “what are your funding criteria?” to help you learn more about what those funding sources consider important and to decide if you should continue to invest time and energy pursuing those relationships.
Scott Jordan is Director of Business Development for Dynamic Alternative Finance. He has arranged over $27 million in loans and equipment leases for cannabis business owners in the past two years. Scott is a commercial finance expert known throughout the marijuana industry. He has been interviewed by local TV and radio stations, authored articles and been a featured speaker at national conferences. Reach him at 303.754.2050 or s.Jordan@dynaltfinance.com.
Video: 4th Annual #CannaBizSummit Re-cap
In this month’s video newsletter, NCIA Director of Events and Education Brooke Gilbert shares some of the highlights from last month’s 4th Annual Cannabis Business Summit & Expo, held in Oakland, California. With more than 5,000 attendees, 80,000 square feet of expo floor, in-depth workshops and tours, and exceptional keynotes and panel discussions, #CannaBizSummit attendees got connected and inspired with us over the course of three days in June. Thanks to everyone who attended and made the event NCIA’s best yet!
Member Blog: The Little-Known – and Critical – Exception to Federal Paraphernalia Laws
Last month, the Boulder Daily Camerareported on the case of Stashlogix, a manufacturer of lockable storage containers whose shipment of products was seized by U.S. Customs and Border Protection (CBP). That seizure followed an earlier warning letter from CBP, which advised the company that the containers could not be imported.
The Washington Postprovided excerpts from the correspondence between CBP and Stashlogix after the seizure:
“This is to officially notify you that Customs and Border Protection seized the property described below at Los Angeles International Airport on April 28, 2017,” the letter read. The agency had seized 1,000 of Stone’s storage bags, valued at $12,000. CBP said the bags were subject to forfeiture because “it is unlawful for any person to import drug paraphernalia.”
In a separate letter explaining the ruling, CBP acknowledged that “standing alone, the Stashlogix storage case can be viewed as a multi-purpose storage case with no association with or to controlled substances.” However, it noted that the storage cases come with an odor-absorbing carbon insert that could be used to conceal the smell of marijuana.
A representative of CBP provided further insight into the thinking within the agency:
Jaime Ruiz, a public affairs agent with the CBP, said that because it remains illegal under federal law, importing any drug or associated products into the country is prohibited, even if it comes through a port in a state where pot is allowed.
When it comes to drugs and related products, he said, “we’re enforcing (Drug Enforcement Administration) guidance. So if it looks like drug paraphernalia, they’ll stop and inspect it and make the best determination.”
In asserting that this activity is unlawful, the CBP is basing that assertion on the federal paraphernalia statute (21 U.S.C. 863), which provides:
“It is unlawful for any person
(1) to sell or offer for sale drug paraphernalia;
(2) to use the mails or any other facility of interstate commerce to transport drug paraphernalia; or
(3) to import or export drug paraphernalia.” (21 U.S.C. 863(a))
Drug paraphernalia is defined as
“any equipment, product, or material of any kind which is primarily intended or designed for use in manufacturing, compounding, converting, concealing, producing, processing, preparing, injecting, ingesting, inhaling, or otherwise introducing into the human body a controlled substance, possession of which is unlawful under this subchapter.” (21 U.S.C. 863(d))
So it seems that in this case, CBP seized these lockable storage containers because they believe they were intended to “conceal” cannabis. This is quite a position for CBP to take, since the containers – whether they were for cannabis, tobacco, or prescription drugs – seem to have a primary purpose of keeping substances out of the hands of kids. If these products were not “concealed,” they might be accidentally ingested by small children.
But there is a more significant issue here that both CBP and the media did not address. What they ignored is a significant exception to the federal paraphernalia laws. At the end of the paraphernalia statute is this provision:
(f) Exemptions. This section shall not apply to—
(1) any person authorized by local, State, or Federal law to manufacture, possess, or distribute such items
As with any aspect of the law, there can be differences of opinion over how a statute should be interpreted. And the federal government may have its own interpretation of the exemption to the paraphernalia statute. The plain language, however, is pretty straightforward. If you are authorized to manufacture, possess, or distribute certain items, then you are exempt from the prohibitions in that section.
Note that the exemption states, “This section shall not apply…” It does not say, “Prohibitions on manufacturing, possession, or distributions shall not apply…” It says, “This section…” And what is included in the section? The prohibition on importing paraphernalia. The plain language of the statute, therefore, suggests that the prohibition on importing paraphernalia does not apply to an individual who is authorized to manufacture, possess, or distribute paraphernalia under state law.
The federal paraphernalia exemption is so significant that it was used as a model for a bill introduced by Rep. Dana Rohrabacher, which has 22 co-sponsors (11 Republicans and 11 Democrats) as of this writing. The Respect State Marijuana Laws Act of 2017 adds one sentence at the end of the Controlled Substance Act:
Part G of the Controlled Substances Act (21 U.S.C. 801 et seq.) is amended by adding at the end the following:
“SEC. 710. RULE REGARDING APPLICATION TO MARIHUANA.
“Notwithstanding any other provision of law, the provisions of this subchapter related to marihuana shall not apply to any person acting in compliance with State laws relating to the production, possession, distribution, dispensation, administration, or delivery of marihuana.”
The drafters of cannabis-related ballot initiatives have been aware of the paraphernalia exemption for quite some time and have intentionally addressed paraphernalia – often called “marijuana accessories” – in the measures so that the federal exemption would apply.
In 2012, Colorado’s Amendment 64 provided that the following acts would no longer be an offense under Colorado law for persons twenty-one years of age or older: “manufacture, possession, or purchase of marijuana accessories or the sale of marijuana accessories to a person who is twenty-one years of age or older.”
California’s Proposition 64 in 2016 took the additional step of expressly connecting state law and the federal paraphernalia exemption, by providing:
11362.1.
(a) Subject to Sections 11362.2, 11362.3, 11362.4, and 11362.45, but notwithstanding any other provision of law, it shall be lawful under state and local law, and shall not be a violation of state or local law, for persons 21 years of age or older to:
[…]
(5) Possess, transport, purchase, obtain, use, manufacture, or give away marijuana accessories to persons 21 years of age or older without any compensation whatsoever.
(b) Paragraph (5) of subdivision (a) is intended to meet the requirements of subdivision (f) of Section 863 of Title 21 of the United States Code (21 U.S.C. § 863(f)) by authorizing, under state law, any person in compliance with this section to manufacture, possess, or distribute marijuana accessories.
The cannabis industry faces a host of difficulties stemming from the disparity between state and federal laws. The challenges and risks associated with these differences have become an accepted cost of doing business. But where federal law provides a clear exemption for certain state-legal activity, the federal government should ensure that its activities are consistent with law. In this case, it seems far from clear that they are.
This blog post does not provide legal advice. It is intended for general informational purposes only. If you need legal advice, please contact an attorney directly.
Steve Fox, Esq., Director of VS Strategies, has, since 2002, been one of the leading figures in the movement to create a legal, regulated marijuana market in the United States. He is a co-founder of the National Cannabis Industry Association and currently serves as the director of NCIA’s Policy Council. In seven years at the Marijuana Policy Project, he lobbied Congress and guided numerous ballot initiative campaigns, including the 2012 Amendment 64 campaign in Colorado.
Highlights From NCIA’s 4th Annual Cannabis Business Summit & Expo
by Brooke Gilbert, NCIA Director of Events and Education
NCIA’s biggest and most influential event, the Cannabis Business Summit & Expo, wrapped up a few of weeks ago in Oakland, CA. We hope you had as much fun as we did! Did you miss out on attending, or would you like to relive your experience? Check out these event highlights below to get a glimpse into this year’s edition of the Cannabis Business Summit & Expo:
• Our largest event to date with 5000+ attendees.
• Keynote address from President Vicente Fox, the former president of Mexico, who spoke about the social injustices created by the war on drugs and the positive effects of global cannabis legalization. Listen to his full keynote here.
• Eighty thousand square feet of sold-out exhibit space featuring 250+ exhibitors, and 33 media and industry partners.
• Twenty hours of educational content over three days, featuring six workshops and 30 breakout sessions spread across five educational tracks and led by 150+ industry experts.
• Two plenary sessions, one featuring a discussion of the strategies to reform Internal Revenue Code Section 280E, and the second featuring a discussion of the results of a 16-month stakeholder-driven process that resulted in a comprehensive white paper detailing regulatory recommendations for packaging and labeling of cannabis products.
• On-site bookstore and book signings from current cannabis industry authors including John Hudak, Ewe Blesching, Chris Conrad, Steve DeAngelo, Jorge Cervantes, and Donna Shields.
• One hundred seventy-three press personnel from 65 outlets joined us for the three days, generating 1.4 billion impressions worldwide.
View the entire official photo album from the 4th Annual Cannabis Business Summit & Expo online here: TheCannabisIndustry.org/CBS17Blog
A big THANK YOU to all our attendees, volunteers, speakers, sponsors, exhibitors, and partners for contributing to another successful year at our Cannabis Business Summit & Expo.
In this month’s member spotlight, we check in with the team at Yerba Buena Farms, based in Oregon. Yerba Buena was recently named one of the top 100 green companies to work for in Oregon. Operations Manager Laura Rivero tells us more about their company and the way they manage their staff through self-care “wellness days” and volunteering for charitable organizations.
Yerba Buena Farms
Cannabis Industry Sector:
Cannabis Cultivation
NCIA Member Member Since:
May 2017
Tell us a bit about your background and why you launched your company?
We launched YB with the intention of bringing a holistic approach to the cannabis business. These include fair labor practices, research and innovation, organic practices, sustainability, and bringing a diverse group of people together to achieve a common goal.
What unique value does your company offer to the cannabis industry?
Our company is focused on consistency and quality in both our product and business practices while maintaining full compliance and integrity. We are helping to set standards across the board, elevating the cannabis industry as a whole and inspiring others.
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 do the right thing every day and with every decision. It is not always about the bottom line and the ability to cultivate a socially responsible organization is a key benchmark in our organization. We have been recognized in every sector of the industry and beyond for exemplary practices, and we are committed to pushing the envelope to increase the standards for other businesses, regardless of their industry. We were the first (and so far only) cannabis company to make the 100 Best Green Workplaces in Oregon, placing 9th, and shining a light on this industry as a potential leader in sustainable business practices.
We participate in organizations that are helping push forward positive change and standards, such as the Cannabis Certification Council (CCC), which is dedicated to setting national organic and fair labor standards for cannabis, the Oregon Cannabis Association (OCA), which is dedicated to protecting the cannabis industry on local, state, and federal levels, and we are part of the Resource Innovation Institute (RII), which leads in sustainable design and resource efficiency for the cannabis industry.
In addition to participating in other organizations that are making a difference, we understand that it all truly starts within our own organization. We are committed to paying our employees a family wage and provide excellent health benefits that are covered 100% by the company. We have monthly wellness days to promote self-care and teach personal wellness strategies, as well as regular get-togethers and team building events. Our team volunteers with many charitable organizations in order to give back to our community in a more meaningful and interactive way. We provide in-depth training to all of our employees on all areas of cannabis in order to increase the ambassadorship of our company. We take the opportunity and responsibility to be leaders in this industry and help to shape it to become a legitimate and respected part of the national economy, reducing the unfounded stigma, and allowing cannabis to change the world for the better.
What kind of challenges do you face in the industry and what solutions would you like to see?
Access to information both internally and externally. The industry does not have modern operating systems to adequately manage the business of cannabis production, forcing us to create our own solutions internally at great expense. Externally, banking and taxation are two areas where YB would like to see national solutions.
Why did you join NCIA? What’s the best part about being a member?
We joined NCIA because of the work accomplished and in progress on a national and state level. NCIA has represented this plant for years, and we are excited to support these efforts. The information provided by the NCIA regarding market trends, pricing, state-specific data, etc., is incredibly valuable.
Last month, more than 250 cannabis industry professionals came to D.C. for NCIA’s 7th Annual Cannabis Industry Lobby Days. In this month’s video newsletter, we capture highlights from this energizing two days of advocacy, education, and community. Watch the video to re-live the experience, or live vicariously through your fellow NCIA members. And plan to join us next year to add your voice!
Were you there? How did your meetings on Capitol Hill go? What was your favorite part of the experience? Please send a brief testimonial of your experiences to NCIA Communications Manager Bethany Moore by emailing bethany@thecannabisindustry.org.
Thank you to the co-chairs of NCIA’s Policy Council for their premier sponsorship of our 2017 Cannabis Industry Lobby Days:
Member Blog: How to Build a Financial Backbone for Your Cannabis Company
As cannabis laws liberalize across the nation, entrepreneurs and emerging companies are racing to make their mark and stake their claim in the market. The road to legitimacy goes beyond votes, however—it requires companies wanting to play a significant role in this market to grow, attract investors, and constantly prove their credibility and worth.
A focus on the finance and accounting side of the business will make a difference in setting apart companies as the competition continues to heat up. Here are five key ways to elevate as a qualified, proficient operation.
View financial discipline as a necessity. Financial statements are the language of business. Accurate and timely financial reports don’t tell you how to run the business but show you how well it’s doing. Which product lines are turning a profit? What do the trends tell you? How does cash flow look over the next couple of months—and year? Are you properly accounting for all costs to accurately track margins?
The questions are many, and only with a solid accounting foundation to provide management with the answers you need—and reliable financial statements to tell the story—can you confidently move forward with decision-making.
Bolster your internal controls. Here’s a scary thought: 75% of companies experience fraud, and in most cases, the biggest fraud threat comes from within. In this industry, the threats are even higher as long as issues at the federal level keep companies mostly cash-based operations.
To ensure checks and balances exist, a working set of internal controls is critical. For instance, do you have adequate segregation of duties, or does one person have a hand in everything? Do you perform regular cycle counts in inventory? Your internal controls can ensure that you’re keeping tabs on critical items—a must for meeting the evolving tracking and tracing requirements set by the cities, counties, and states where you do business. The controls can be simple, designed for the size of your company, but be sure they can scale as you grow.
Be ready for investors. Even if you’re nowhere near a funding round or an exit seems a lifetime away, it’s always smart thinking to factor in what investors want. They’ll want to know your history and to see whether the business is well run. Reliable financial statements are one way to get their attention. You’ll also need to show them key performance metrics, specific to your business, that you’ve tracked over time.
They’ll be most interested in signs of financial discipline that you’ve ideally ingrained in the business. This discipline reflects favorably on management in any industry and drives home management’s capabilities to investors.
Be nimble. Successful companies look to today (day-to-day operations), tomorrow (what’s needed in the next 12-18 months) and the future (3-5 years). Their strategic planning efforts make room for pivoting for the unexpected. By making sure their financial plans are in sync with other operational plans, companies can pull off fast moves smoothly with full awareness of how one change impacts another part of the business and the company as a whole. Being nimble allows you to pivot, as necessary, when market forces out of your control (new regulation or a sudden surge in orders) require you to consider alternative moves.
Calibrate for rapid growth. Plot out the critical resources you’ll need as you progress through the phases of your business. This means striking the right balance with the people you hire and outsource, the processes you adopt, and systems you put in place.
It’s especially important to master this skill when the company is in rapid growth mode and looking to ramp up. It may be time for a big upgrade, for instance, if your current systems can’t track inventory. Dealing with an overstretched team? Expanding too quickly could alleviate the issue, but if revenue doesn’t pan out as expected, you could end up in a bind.
Get Ahead of the 8 Ball
As finance and accounting consultants who help businesses navigate the ever-changing environment in California, we know that both landmines and opportunities await businesses in the legal cannabis market. Cannabis companiesare preparing for the real possibility of hyper-growth and increased competition but need to tread carefully to avoid burning out before that day comes.
What’s going to set your company apart from every new competitor that muscles its way in? Financial discipline—companies need to step up their game to put themselves on the same playing field where others already are and to stay competitive as newcomers enter the market. If done correctly, your financial infrastructure will help to guide your decisions, tell your story to those who evaluate your growth capital needs, and scale with you. Prioritize it if you want a prominent spot on the playing field.
Maureen Ryan, vice president, heads up business development at finance and accounting consulting firm RoseRyan. From the early startup to the large enterprise, she has seen the emotional rollercoaster of finance challenges at cannabis businesses, tech companies and other fast-paced organizations. She can be reached at mryan@roseryan.com.
Chris Vane is a director at RoseRyan, where he leads the development of the firm’s cleantech and high tech practices. He helps fast-moving companies calm the chaos with precision finance at any stage. He can be reached at cvane@roseryan.com.
52% of American adults have tried cannabis at some point in their lives.
22% of Americans use cannabis. 63% of cannabis users are regular users.
About half of cannabis users are parents: 54% of cannabis users and 51% of those who use cannabis regularly (at least once a month).
56% of Americans think that cannabis use is socially acceptable.
Over half of Americans don’t think less of professionals or athletes for using cannabis in their free time.
79% of Americans would lose respect for parents who use cannabis in front of their children.
27% of those who don’t use cannabis say the main reason is its legal status under federal law.
Cannabis users are open about their use. 95% of them have told their significant other and close friends about their use. 72% told their parents about use. 60% told their kids.
CBS released a poll that surveyed voters about the legality and health effects of cannabis on April 20th, 2017, and below is a list of key findings:
71% would oppose a federal government crackdown on cannabis sales in states where cannabis is legal.
65% of voters believe cannabis is less dangerous than other drugs.
53% believe it is less dangerous than alcohol.
Quinnipiac University released a poll that surveyed American voters on April 20th, 2017, and here are the key findings on cannabis:
76% of people think that the drug classification of cannabis should be lowered.
An overwhelming majority of people, 94%, believe that doctors should be able to prescribe medical cannabis to patients.
60% of voters believe that cannabis should be legal in the U.S.
The findings from these polls show that there is an overwhelming amount of support for cannabis legalization despite its legal status and current drug scheduling. With this much support, having the drug rescheduled and national legalization are now realistic concepts.
Sarah DeMeo is a Public Affairs and Policy Intern at CannaCraft, Inc., the parent company of Care by Design. She has an interest in where both citizens and lawmakers stand on cannabis, and how their standings impact cannabis legislation. She is pursuing degrees in business and statistics. In her free time, she enjoys reading, writing, and hiking.
The Cannabis Industry Takes D.C. – Highlights from NCIA’s 7th Annual Lobby Days
by Michelle Rutter, NCIA Government Relations Manager
With the uncertainty that the new administration has brought the cannabis industry, it’s become more important now than ever before to be proactive in government and in our nation’s capital. Last month, NCIA did just that by hosting our 7th Annual Cannabis Industry Lobby Days. 250 cannabis industry professionals joined us in Washington, D.C., to meet with more than 300 Capitol Hill offices and tell their stories.
Lobby Days kicked off with a breakfast and training session for our attendees, where they learned lobbying basics and were briefed on our talking points. There, attendees met with their groups and gathered their materials to drop off in Capitol Hill offices for staff.
Once the training session was complete, we led our attendees down to our group photo location. Every year, NCIA has nearly doubled the number of participants at Lobby Days.
Following our (very large!) group photo, meetings on Capitol Hill commenced. We scheduled more than 300 meetings with congressional opponents, advocates, members from relevant committees, and others. In addition to the meetings we had scheduled, we also dropped in on various offices and left information about our issues with staff for them to review. In all, we made contact with nearly all of the 535 congressional offices on the Hill!
Simultaneously during our Hill meetings, NCIA hosted a private luncheon for Rep. Carlos Curbelo (R-FL), the new sponsor of H.R. 1810: The Small Business Tax Equity Act, which addresses the unfair burden of 280E faced by the cannabis industry. Over the years, NCIA has consistently worked to increase our Capitol Hill advocates and are thrilled that Congressman Curbelo will be leading the charge on 280E reform.
After a busy day of meetings on Capitol Hill, NCIA hosted a fundraiser for the NCIA-PAC, the Political Action Committee (PAC) for cannabis industry professionals. We had six members of Congress show their support by joining us: Reps. Earl Blumenauer (D-OR), Salud Carbajal (D-CA), Carlos Curbelo (R-FL), Ruben Gallego (D-AZ), Jared Polis (D-CO), and Dina Titus (D-NV).
We were thrilled to raise $60,000 for the NCIA-PAC, which supports federal candidates who are open to the challenges and concerns our industry faces, support cannabis reform at the federal level, and introduce or support pro-cannabis legislation.
Our second day got off to a great start with a press conference held in front of the United States Capitol Building. NCIA executive director Aaron Smith was joined by seven members of Congress (Reps. Blumenauer, Steve Cohen [D-TN], Curbelo, Diana DeGette [D-CO], Eleanor Holmes-Norton [D-DC], Polis [D-CO], and Titus [D-NV]) to address the need for reform federal marijuana laws.
Overall, it was an incredibly successful Lobby Days, and our biggest yet! We’ve already seen co-sponsorship on cannabis-related bills increase, and it is undoubtedly related to the meetings and personal stories NCIA members shared. We look forward to seeing you all in Washington, D.C., for our 8th Annual Cannabis Industry Lobby Days in 2018!
Kefentse Mandisa is a broker at 
Early next week, the House Rules Committee will hold a hearing to discuss amendments to the upcoming appropriations bill that will fund the government for FY2018. The Rules Committee is used by leadership to maintain control over the House floor, and is 
Baker Technologies
An established staple in retail and inventory environments, barcodes/QR codes facilitate trackability. Now that message is resonating in the cannabis industry. A primer in motherboard.vice.com points out, “Walk into any licensed cannabis grow op in Colorado and one of the first things you’ll notice are the barcodes.” They point out in another article, “There are a number of advantages of having a bar code for cannabis growers, producers and retailers. The most important is proper inventory control – which is mandated, in Washington, by the Washington State Liquor Control Board. Having bar codes on inventory items allows rapid identification of specific SKUs. The likelihood of inventory quantity irregularities is greatly reduced.”
But benefits can mean so many things, for instance health coverage benefits. The hottest topic in Washington these days revolves around health benefits: repeal, replace, or just repeal. In any event the result is confusion for the employer and employee. What will be the law?
A credit application is the first step in gathering information about potential customers. Even if customers pay in cash, the day will come when that system changes, and getting information about accounts at the start of business relationship is key. The more you know about its debtors, the better. In addition, collecting credit information will make it easier to determine exactly how much credit to extend a customer.
Be ready for investors. Even if you’re nowhere near a funding round or an exit seems a lifetime away, it’s always smart thinking to factor in what investors want. They’ll want to know your history and to see whether the business is well run. Reliable financial statements are one way to get their attention. You’ll also need to show them key performance metrics, specific to your business, that you’ve tracked over time.
Maureen Ryan
Chris Vane
Sarah DeMeo is a Public Affairs and Policy Intern at CannaCraft, Inc., the parent company of 
