Guest Post: If I use marijuana, will you hold it against me?

by Jeanine Moss, Founder of AnnaBis Handbags and Accessories

Someone, someday is going to demonstrate their disapproval of you by choosing a distinguishing characteristic and labeling you with it. Like horse face. Or eagle beak. Or pothead stoner.

It’s called stigma, and it’s a form of prejudice that is especially fascinating to me because I’m one of the cadre of professionals who wants to bring cannabis out of the alley and onto Wall Street.

I am the founder of AnnaBís, a company making fashionable, functional and odor-controlled accessories to carry cannabis. We’re dedicated to helping women feel free and sophisticated when carrying their medicine, recreational supplies, or both.

So we asked Penn Schoen Berland (PSB) to ask a nationally representative sample of 800 Americans, 18+, about their attitudes toward people who consume marijuana, alcohol, and cigarettes. We wanted to know: Who is most judgmental? Against whom? For what?

Here’s what we learned:

  • More than half of people surveyed either don’t care or are favorably disposed about marijuana usage among their friends, co-workers and family members.
  • Nearly 50% are neutral or favorably disposed about the marijuana usage of teachers, elected officials, doctors and police officers. Though all respondents were most judgmental of police officers who consume cannabis, even in this group more than 4 in 10 either don’t care, or are favorably disposed.
  • Alcohol remains less of a stigma, but cigarettes are pretty close to cannabis when you consider they’re a legal product.

The overarching question we asked was:

“How would your opinion of each of the following people change if you knew they were a responsible consumer of marijuana / alcohol / cigarettes? (Much more favorable, somewhat more favorable, no more or less favorable, somewhat less favorable, much less favorable.)

Table 1

We also learned that Republicans are the most judgmental about marijuana consumption, particularly when it involves police officers, doctors, and elected officials. And the majority of Democrats say they are either more favorable or no more or less favorable towards people who are responsible consumers of marijuana across the board:

Table 2

Based on 61 percent of Americans being in favor of marijuana legalization (according to AP-NORC Center for Public Affairs Research) and our data reflecting positive or neutral attitudes about responsible consumption among key community members, we think we’re experiencing a tipping point in favor of tolerance and choice. Additional findings are coming soon, and this will serve as a benchmark to see how things have changed in a few months. We’ll keep you posted!


 

JM_close_up_50_percent_400x400Jeanine Moss is the Founder of Annabis, LLC, a member of NCIA since November 2015. She grew up in Venice, California, so she is no stranger to cannabis. The daughter of an artist and a rocket scientist, she loves doing things that have never been done before and also owns Turning Point Solutions, a marketing firm established 13 years ago to help companies capitalize on change. She created the first computerized horse buying and breeding registry, the first newsletter for women business travelers, the first New York City Fun Pass, the first Bring Your Parents to Work Day, the first luxury accessories for women who consume cannabis, and is especially proud of her work as communications chief for The September 11th Fund.

Guest Post: Cash Management in the Cannabis Industry

Jeff Foster, Co-Founder, Jane, LLC
Interviewed by Vinnie Fiordelisi, Sr. Director of Corporate Communications, Jane, LLC

Jeff Foster, co-founder of Jane
Jeff Foster, co-founder of Jane

For nearly two decades, Jeff Foster has worked with some of the world’s largest retailers and financial institutions to define, design, and implement e-commerce and retail payment processing and risk management solutions. Here he shares some advice and insights on cash management and financial services in the cannabis industry.

What is the state of cash management in the cannabis industry?

It’s a real mess. Employee theft is even higher than in bars and restaurants. Many of the dispensary owners we talk to say it’s as high as 10-15% of sales. Robberies are a real threat. The cash reconciliation process is time-consuming, costly, and susceptible to human error. But the biggest issue is it’s almost impossible to run a multi-million dollar business with all cash.

What are the common problems you hear from dispensary owners when it comes to them doing business effectively and simply?

The cannabis business has the most complicated legal and regulatory framework in the history of retail and many of the dispensary owners are first-time entrepreneurs. Combine these two things, further complicate it by a lack of banking and a business that is bustling seven days a week, and you find it extremely difficult to navigate this constantly evolving landscape.

What challenges do dispensaries face as it relates to financial services?

What challenges don’t they have? Very few have access even to depository banking, much less checking. Most cannot process credit or debit cards legitimately so they are on a strictly cash basis. So imagine having to make payroll, pay rent, or buy hundreds of thousands of dollars worth of product without the ability to write a check or send a wire. Most of the dispensary owners we talk to spend as much as 25% of their time simply managing this process. With full access to banking and financial services those same tasks would take almost no time at all.

Where do the federally regulated banks stand on working with cannabis businesses?

Marijuana is still a Schedule I drug, selling it is a felony, and the Bank Secrecy Act prevents banks from taking deposits known to be a result of a crime. This obviously makes the landscape particularly treacherous for a federally chartered bank.

I do believe more and more banks will get involved in the marijuana business. We are seeing it with the financial institutions we are working with in Colorado for our Triple Play program. There is too much momentum and popular acceptance to put the genie back in the bottle. So it is important for marijuana retailers to be prepared. Banks that do accept cannabis businesses are going to be very cautious and only accept clients that are unquestionably above board and fully transparent.

Any final advice for dispensary owners?

Yes, for dispensaries accepting Visa and MasterCard, my advice is to stop unless and until you have signed a contract that includes the name of the bank. I’ve been in payment processing for almost 20 years and our other company currently processes over $3 billion annually in Visa/MasterCard for some of the largest retailers in the world, so I have some knowledge on the subject. There are very few sponsor banks in the U.S. who will knowingly accept a merchant in the cannabis business and both Visa and MasterCard strictly prohibit utilizing a bank outside of the U.S. for domestic transactions.

Unfortunately some dispensary owners have been led to believe that if they have a terminal and their deposits show up in the bank that “it’s working.” Well that may be true, but I can nearly guarantee there is a break in the chain somewhere and that broken link can lead to fines in the hundreds of thousands of dollars and expulsion from the Visa/MasterCard network for life…just for a start.

Banking is coming. Credit card processing is coming. Dispensary owners need to focus on running their businesses within the framework established by the Department of Justice, the Financial Crimes Enforcement Network and their state and local laws regarding the sale of marijuana. If they do that, and remain patient, they will be first in line as legitimate financial services finally arrive.


Jeff Foster is co-founder of Jane, LLC, a Sponsoring level member of NCIA since July 2014. For nearly two decades, Jeff has worked with some of the world’s largest retailers and financial institutions to define, design and implement e-commerce and retail payment processing and risk management solutions. Jeff co-founded Jane after recognizing the overwhelming need for cash management and financial services solutions in the legal cannabis industry. As an innovator in financial services, Jeff is a sought-after expert and speaker. He has been quoted in numerous publications including; The Wall Street Journal, Business Week, The Financial Times, The Washington Post and The Washington Business Journal and has appeared on Bloomberg Television and ABC News. Jeff also speaks at countless financial services and cannabis trade shows globally, where he advocates and educates on everything from strategy and trends to best practices.

Help support a marijuana and multiple sclerosis study at CSU

by Thorsten Rudroff, PhD, FACSM, Colorado State University

Medical marijuana is commonly used to treat pain and spasticity, or uncontrolled muscle contractions, in people suffering from multiple sclerosis. While scientific studies have shown marijuana and its constituents to be fairly effective in treating these specific symptoms, not much else is known about the positive and negative effects marijuana may have on other disabling symptoms of MS. People with MS often have a multitude of symptoms and side effects related to the disease, and these symptoms often present themselves in very individualized ways. Currently our research group is hoping to investigate how medical marijuana may affect symptoms other than pain and spasticity, specifically motor impairments. Motor impairments range from difficulties walking, fine motor control, and the customary loss of strength that many people with MS develop.

In our study we are proposing to investigate this by performing a battery of physical function tests that are commonly used in the clinical setting, e.g. the timed up-and-go, the 5 rep sit-to-stand, and the 6 min walk test, on people who do and do not use medical marijuana. We also plan to determine whether the use of medical marijuana affects how the brain uses sugar, which is its primary source of energy. Previous investigations in our lab and others, have shown that people with MS often have a reduced usage of sugar in the central nervous system (brain and spinal cord) at rest and during exercise. This lower utilization has been linked to walking impairment, fatigue, and other side effects that people with MS often have. Our lab is unique in the fact that we are able to trace/quantify the usage of sugar as a source of energy by using what is called Positron Emission Tomography, or PET.

Total Body_3PET imaging is often used in cancer diagnostics, staging, and to determine the effects of treatment. We are one of the few labs in the world that use this technique for the investigation of exercise/physical activity related functions, such as the functional tests we are planning to perform. PET produces 3-dimensional images of the body to show where the sugar is being used. Using specialized computer software we can them compare the images of the groups and determine how regular marijuana usage affects the “normal” usage of sugar in people with MS.

Once the data has been collected we can compare the results from the medical marijuana users group to the “control” group and determine if there are any differences between the groups’ performance on any of the tasks. These comparisons will be the foundation for larger future research studies investigating the additional benefits of medical marijuana as a treatment for symptoms of MS.

In order to raise money to perform these studies we are currently running a crowdfunding campaign hosted by Colorado State University Charge!

Donations can be made here.

The funds raised from the crowdfunding campaign will be used to pay our participants for their time spent in the lab, as well as to cover the cost of the PET imaging. At the conclusion of this study we hope to preliminarily identify additional benefits and potential side effects of medical marijuana and continue to scientifically justify the continued use of medical marijuana for people with MS.


Thorsten Rudroff, PhD, FACSM is an Assistant Professor in the Department of Health and Exercise Science at Colorado State University (CSU) where he is the Director of the Integrative Neurophysiology Laboratory. Dr. Rudroff’s research interests include the neurophysiology of motor function and fatigue. He is unique in the fact that he employs neuroimaging techniques (e.g. Positron Emission Tomography (PET), Computed Tomography (CT), and Magnetic Resonance Imaging (MRI)) to study the interaction between the central nervous system and muscle. His current research projects are aimed at identifying the effects and mechanisms of cannabis on motor and cognitive function in people with Multiple Sclerosis.

His research has been funded by the National Institutes of Health/National Institute on Aging to investigate muscle energetics in older adults and by the National Multiple Sclerosis Society to investigate skeletal muscle glucose uptake during walking in people with MS. Currently, he is conducting a crowdfunding campaign to collect preliminary data identifying the benefits and potential side effects of medical marijuana use by people with MS. The goals of this research are to improve the quality of life for people with MS and scientifically justify its continued use as a therapeutic agent in neurological diseases.

New Member Benefit! Share your company news with the cannabis community

Did you just release a new product? Hire a hotshot new executive? Do something great for your community? Let the cannabis community know about it by posting your story to NCIA’s new Member News page.

MemberNews

In an industry growing and changing as rapidly as ours, exciting things happen at our member businesses every day. That’s why NCIA is rolling out a new member benefit, allowing you to share your company news, announcements, and press releases directly on the NCIA website – a central information hub for the cannabis business community.

The Member News section can be found under the ‘Resources’ menu on our website. If your business is a member of NCIA and you would like to submit a company news update for online publication, please fill out our Member News Submission form.

We look forward to sharing your exciting news!

NOTE: Member News items are published as submitted by NCIA member companies and are not edited, fact-checked, or endorsed by NCIA.

Member Spotlight: Palm Springs Safe Access

Every month, we zoom in on one of our members to hear their stories and learn more about their businesses in this ever-changing industry. For the month of April, we visit with Robert Van Roo of Palm Springs Safe Access in California. PSSA is a not-for-profit medical cannabis dispensary offering a modern, sophisticated environment for qualified patients to access affordable, high-quality, safety-tested medicine. PSSA strives to be a model corporate citizen, partnering with other organizations to help improve the community’s collective health.

PSSA-Logo-March2016Cannabis Industry Sector:

Medical Cannabis Provider

NCIA Sustaining Member Since:

October 2014

Tell us a bit about you and why you opened Palm Springs Safe Access (PSSA)?

My name is Robert Van Roo and I’m the co-founder and president of Palm Springs Safe Access. It’s been fifteen years since my first experience with cannabis. Spending most of my youth and adult life in Grass Valley and San Francisco, I’ve been exposed to a lot of friends working in the industry. I’ve seen this medicine change countless lives and it’s changed mine as well.

Throughout 2009, President Obama’s speeches struck a chord with me, with clear messages encouraging entrepreneurs to be bold and create new jobs and change. I took this calling very seriously – although I’m sure he wasn’t aiming at cannabis startups. To hone that entrepreneurial spirit, I knew I couldn’t stimulate job growth as a photographer. However, I saw the potential through cannabis. So began my journey working in the California cannabis industry, with the first iteration of Palm Springs Safe Access (PSSA) taking shape in late 2011.

CEO and Co-founder, Robert Van Roo, and VP & Chief Agricultural Officer, Cody Henderson

At PSSA we believe when entrepreneurs with the right intentions work with cannabis, it can better the communities in which they operate and someday change the world. The uses of this plant are endless. This industry has the capacity to change lives and create new economic growth not seen in the United States for generations. We understand this is a utopian view, but that’s why Cody Henderson and I opened Palm Springs Safe Access. We did it to create change.

 

Why should patients seeking medical cannabis come to Palm Springs Safe Access?

We believe that our patients deserve an exceptional experience that begins the moment they walk through the doors of our facility and continues when they return home and use their medicine. Steve DeAngelo said it the best: “Out of the shadows, into the light.” I took this statement literally, so we built a well-lit facility with sweeping views of the mountain range here in Palm Springs.

Cody and I are both artists by trade, so naturally we had to have a creative and visually stimulating space. We worked with an 8,000-square-foot blank slate, with just concrete floors and four walls with no power. Everything was done in-house, from the interior design to the layout, down to the manufacturing of light fixtures and the finish work.

We continued this trend with our in-house cultivation. This ensures best practices and quality control for our patients. When it comes to products we didn’t produce ourselves, we carefully vet sources and individuals, in many instances physically going throughout California to see for ourselves where the products provided to our patients are cultivated, manufactured, and branded.

Our patients deserve only the best. Absolutely all our medicine is lab-tested for safety and potency. Independent testing by the City of Palm Springs verifies that we have the cleanest products in the city. Our flowers are nitrogen-flushed and then sealed with Boveda packs inside. All the latest science points to the important roll terpenes play in the medicinal qualities of each specific strain. That makes this collaboration with Boveda, the leader in two-way humidity control, very exciting because early research is already showing that there is 15% retention of terpenes when the 62% moisture packs are present. The packs add moisture as well and since Palm Springs is located in low desert we have to compete with dry conditions.

We believe patients should seek out our facility for the exceptional experience and highest assurance of safety that Palm Springs Safe Access provides through the tireless efforts of our entire team.

The Palm Springs Safe Access team

As a business owner, you’re very involved in your community and in causes that you care about. Can you tell us more about what matters most to you, and how your business participates in pushing for progress?

When it comes to cannabis, education and knowledge is paramount; we tirelessly work to educate patients, politicians, physicians, and peers in the industry. Lab testing became a benchmark mainly because those seeking the benefits of this plant often have compromised immune systems. Late in 2012, I began educating and lobbying the City of Palm Springs in regard to the importance of lab testing. Last year Palm Springs became the first city to ever contract a cannabis lab and independently test medicine being dispensed in their city.

I stay as active as possible with politics on local, state, and federal levels, continuing the conversation with city council members, members of Congress, and senators. We regularly create education and policy reports and actively engage policy makers. On a state level, we participate on both the Legislative and Retail/Delivery Committees with the California Cannabis Industry Association (CCIA) and stay as active as possible with NCIA. In May, I’ll be going to Lobby Days in DC for my second year.

When it comes to community involvement, the support of local organizations is key, and PSSA does its part. We are regularly involved with charitable events and infuse local charities and political activism groups with significant donations, support, and sponsorships. We believe it’s our responsibility to be involved in creating change locally. We strive to represent an accurate picture of our industry as active community partners and show what the cannabis industry can do.

We contribute as much time as possible to the NCIA Minority Business Council, which aims to create an inclusive and diverse industry respectful of all persons and create unique opportunities to attend NCIA events. This is a huge undertaking and we believe with proper programs in place our industry can provide job opportunities for under-represented and disadvantaged groups and individuals to gain insight on opportunities that are available in the industry. That’s why we support the NCIA Minority Business Council scholarship program whenever possible.

Why did you join NCIA?

Robert Van Roo, CEO and Co-Founder of Palm Springs Safe Access
Robert Van Roo, CEO and Co-Founder of Palm Springs Safe Access

Joining NCIA was the first thing PSSA did when we received our local permit. While PSSA was successful in Palm Springs, the fight for fairness on a state and federal level was clearly the end game. It was the next logical step to take, and we believe it’s our responsibility as a legitimate and responsible member of the industry to support the important causes NCIA addresses.

When we joined, we were focused on helping advance causes like fair taxation, access to banking, and sensible policy on cannabis. Since then, NCIA has become so much more than that to us. It’s a community of like-minded cannabis entrepreneurs. We’ve developed relationships with industry peers throughout the country at NCIA events. We’ve expanded our breadth of best practices through the education received at the exemplary NCIA summits and symposiums and have managed to stay current with the ever-changing landscape of the cannabis industry.

Contact:

Palm Springs Safe Access website

 



To make the most out of the Lobby Days experience, register early so that we can begin the process of setting up meetings for you on the Hill. Members who register before April 30th will be entered to win admission and travel expenses for two at NCIA’s Cannabis Business Summit & Expo, including airfare and lodging.

NCIA Accepting Nominations for Board of Directors Candidates

Nominations for NCIA’s annual Board of Directors election are now open to any representative of an NCIA Sustaining Member business looking to serve as a leader of the cannabis industry’s only national trade association.

NCIA prides itself on the democratic system we employ to select our Board of Directors, who are tasked with overseeing the organization’s budget and strategic plan, as well as acting as ambassadors for the association. Board members also support NCIA and the NCIA-PAC through financial contributions and member recruitment.

Any representative of a current NCIA Sustaining Member business may run for a seat on the board with the nomination of any other NCIA member. Nominations for board candidates are being accepted through this online form until 11:59 p.m. Eastern Time on April 27.

NCIA’s Board of Directors is made up of 22 elected positions and the executive director, who reports to the entire board. Elected members serve two-year terms and elections are staggered with 11 of the 22 seats open this year. A list of current board members is available online.

The online ballot will open to all NCIA members on Saturday, April 30, and online voting will be open until until 11:59 p.m. Eastern Time on Monday, May 16.

NCIA utilizes a weighted voting system. Each member business can cast one ballot, voting for up to 11 candidates. Each ballot is then weighted according to membership status. A Sponsoring Member’s vote carries twice the weight of a Basic member’s vote and a Sustaining Member is weighted at five times that of a Basic member.

If you are not yet a member of your industry’s trade association but want to participate in the election as either a voter or a candidate, contact NCIA’s Laurence Gration at laurence@thecannabisindustry.org or (303) 223-4247. We are also happy to answer any questions you have about the election or upgrade your membership so your vote will carry more influence.

**NOTE: Board candidates may not nominate themselves or have someone else from the same member business nominate them. If you or someone at your company would like to run for the board, please contact a colleague at another NCIA member business to request a nomination. ** 

More information about the board election, including a voter guide with candidate information, will be made available to our membership by e-mail in the weeks ahead.

Video Newsletter: We’re going to D.C. in May, and so should you…

One of our most impactful events of the year is just two months away, and NCIA wants you to be there with us in Washington, D.C.

In this month’s video newsletter, hear from NCIA executive director Aaron Smith, as well as NCIA members Steve DeAngelo of Harborside Health Center, Jaime Lewis of Mountain Medicine, Brian Caldwell of Triple C Collective, and Ean Seeb of Denver Relief, as they share their stories about joining NCIA on Capitol Hill for our annual Cannabis Industry Lobby Days.

Register today for NCIA’s 6th Annual Cannabis Industry Lobby Days, May 12-13.



To make the most out of the Lobby Days experience, register early so that we can begin the process of setting up meetings for you on the Hill. Members who register before April 30th will be entered to win admission and travel expenses for two at NCIA’s Cannabis Business Summit & Expo, including airfare and lodging.

Guest Post: 2015 Cannabis Industry Market Analysis

by Jimmy Makoso, Vice President of Lucid Oils

2015 was a very exciting time in the cannabis industry. According to public opinion polls conducted in the U.S., between 51% and 58% of respondents were in support of legalization. The highest level of support comes from the age range of 18-34, showing a staggering 71% supporting full legalization. 

In 2015, several states voted for some form of cannabis proliferation, and many more have taken decriminalization measures. With a year of adult-use retail cannabis now completed in Colorado and Washington, and the start of full legalization in Oregon, the tide seems to be slowly but steadily shifting.

Reflecting back on 2015, here were a few of the notable developments that resonated throughout the cannabis industry.

MPP_JimmyMakoso

Emerging Markets

Currently there are twenty-three states and the District of Columbia that have laws legalizing cannabis usage in some form. Four states have completely legalized cannabis use for adults 21 and older.

On the medical side, several states opened their first cannabis dispensaries to the public in 2015. Nevada, Massachusetts, Minnesota, Delaware, and Illinois were among these states. Though sales have been slow going for various reasons, 2016 should be a landmark year for legalization in many of these newly developing cannabis markets.

Adult-Use Cannabis Boom

Colorado, Washington, Oregon, and Alaska have all completely legalized the possession of cannabis. On January 1, 2014, Colorado opened its first adult-use cannabis stores, which effectively combined their medical and retail markets. Their combined medical and adult-use system generated more than $699 million in gross revenue in 2014, with approximately $76 million in tax revenue collected. Washington, by comparison, opened its adult-use market in July of 2014 and finished the year with $64 million in total sales and $16 million in tax revenue collected. 

The revenue figures for 2015 have eclipsed the previous year’s marks substantially. Colorado gross sales came in just over $996 million for 2015, with $135 million in tax revenue collected from close to 800 stores, servicing about 5.5 million residents. 

Washington, by comparison, generated more than $357 million in retail sales, with more than $115 million going to the state as an excise tax. This revenue was generated at approximately 205 licensed stores, servicing 7 million residents.

Meanwhile, Oregon started a partial foray into adult-use cannabis sales by utilizing the existing network of medical dispensaries selectively approved for retail sales of cannabis flowers to anyone 21 and older. In July of 2016, Oregon will completely open its adult-use market. Alaska, with no medical dispensaries or infrastructure, will likely take much longer to develop as a viable market.  

This chart references data from the Washington Liquor Control Board as The Cannabist website.
This chart references data from the Washington Liquor Control Board as well as The Cannabist website.

 

2016: Legalization Abounds

With the level of success, both fiscally and socially, that was achieved in relatively small states, it should be expected that 2016 will be a big year for ballot measures legalizing cannabis. There are several states that are gearing up for potential 2016 ballot initiatives. Massachusetts, Maine, Missouri, Ohio, Nevada, California, and Hawaii are the states that seem likely to make it to a vote.  

Northeast

In the Northeast, there have been several developments causing optimism throughout the region. New England has taken a very progressive path to legalization. Every state has a medical cannabis market and has decriminalized possession of small amounts of cannabis with the exception of New Hampshire. New Hampshire has made at least six attempts to get decriminalization measures passed, but so far these initiatives have been unsuccessful getting past the State Senate. Ironically, four dispensaries are set to open in 2016 for medical patients that meet the qualifying conditions.  

Midwest

Ohio had a ballot measure to legalize cannabis late in 2015. The legislation featured a basic monopoly on production being designated to 10 predetermined groups comprising wealthy residents. Unsurprisingly, there was overwhelming opposition, with the proposed legislation getting shot down by a margin of almost 2:1 against. We’ll likely see a second attempt to pass a legalization measure in 2016.

West Coast

With Washington and Oregon taking legalization measures, California is the next in line. At the end of the session in 2015, Californians passed the Medical Marijuana Regulation and Safety Act. This piece of legislation sets up the regulatory framework for a state-recognized medical marijuana industry. California, being one of the largest states, with a population of over 38 million residents, has had a vibrant quasi-grey market with an estimated 2,000 stores operating within the state. Despite the lack of reported sales figures, estimates of the California market are conservatively $3 billion to $5 billion annually. Should this market be legalized and regulated at some level, this could generate an estimated $450 million to $750 million in tax revenue, should the state impose a 15% tax rate. 

2016 should be another historic year for the cannabis industry. With public opinion steadily growing in support of legalization, and the hysteria of an election year, it would not be surprising to see cannabis proliferation take the forefront in the national conversation.


Jim Makoso, Vice President of Lucid Oils
Jim Makoso, Vice President of Lucid Oils

Jim Makoso is an entrepreneur in the cannabis industry. He joined Vuber Technologies as one of the original investors in February 2014. He is currently an Advisory Board Member and shareholder responsible for guiding strategic development. January 2015, Mr. Makoso founded Lucid Labs and Lucid Oils. He currently holds the position of Vice President and is responsible for strategic partnerships and business development.

 

 

 

Why Lobby Days Are Important To Me

by Michael Correia, NCIA Director of Government Relations

As the remaining days of winter wind down, each new day brings added excitement for me as we look forward to spring and NCIA’s 6th Annual Lobby Days, being held May 12th and 13th. Lobby Days has always been a highlight of my year, as it gives me an opportunity to meet our wonderful members from around the country and to showcase our industry to members of Congress.

Michael Correia, NCIA's Director of Government Relations
Michael Correia, NCIA’s Director of Government Relations

Before joining the NCIA team in 2013, I spent more than 15 years working on Capitol Hill. One aspect that I will always remember is seeing all the interest groups converging on Capitol Hill to hold their individual lobby days and advocate for a particular issue. It gave me, as a congressional staffer, the opportunity to see first-hand who supported (or opposed) certain policy issues and to gain a thorough understanding about those particular issues, making the issue personal to me. As we get nearer to NCIA’s Lobby Days, it’s very important for you to find the time, make the sacrifice, become politically engaged, and ensure your voice is heard as we put a personal face on this industry.

For most NCIA members, cannabis reform is the number-one policy issue, but for congressional offices, it is only one of hundreds of issues they tackle on a regular basis. When NCIA members show up for Lobby Day, the marijuana issue is no longer theoretical, but personal.

It is the child with epilepsy, it is the returning vet with PTSD, it is the grandparent with cancer, or the parent dealing with chronic pain.

It is the local business owner, paying taxes, and providing jobs.

It is “regular” people asking congressional offices to support an issue that is broadly supported in the district.

There is no easy way to say it, but politicians are risk-averse and take the path of least resistance. It is much easier for them to support an issue that is broadly “accepted” rather than what is perceived to be a “fringe” issue.  Putting a face to our cause is so important to changing Congress’ perception of our industry.

If you follow the news, you know that Congress has gotten so polarized that it’s becoming harder and harder for them to pass basic legislation – even funding our nation’s budget. With all the issues going on in the world today, it is easy for political leaders to just forget about an issue and leave it to the side. Political change does not happen in a vacuum; it takes active engagement and continual struggle to achieve success. Our issue will not be swept aside and forgotten. Between the presidential election and so many states having ballot initiatives, 2016 is sure to be a truly historic year for cannabis reform. It is imperative that the next president continue on with the previous administration’s policies on cannabis (and do even more). The best way to ensure continual progress is having Congress affirm what is already happening at the state level and continue supporting pro-cannabis legislation in larger and larger majorities.

The National Cannabis Industry Association's 5th Annual Lobby Days in Washington, D.C.
NCIA’s 5th Annual Lobby Days in Washington, D.C.

My goal has always been to build up the kind of respected, professional, effective government relations effort that every other industry in America has and that our members can be proud of, but I can’t do that without your help. My job in Washington, D.C., is not mutually exclusive to what is happening at the local level. When I walk into an office to discuss our issues, it’s always refreshing when they say “we’ve been hearing from our constituents on this issue.”

In addition to having your voice heard and putting a legitimate face on our industry, attending Lobby Days gives you an opportunity to meet our government relations office and witness first-hand what we are trying to accomplish at the federal level, along with meeting other cannabis reformers from around the country. This is just one part of our journey. Being professional. Being effective. Being heard. To help achieve all of our goals, I need your help. Please find the time to make sure your voice is heard and join us for Lobby Days.


Make your voice heard alongside your industry peers at this year’s Annual Cannabis Industry Lobby Days in Washington, D.C., on May 12-13.

Register before April 30 and you’ll be entered to win admission and travel expenses for two at NCIA’s Cannabis Business Summit & Expo, including airfare and lodging at the Oakland Marriott Convention Center June 20th through 22nd. The winner will be announced at Lobby Days, and you must be present to win.

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VIDEO: 1 minute, 12 cities, a million reasons to join NCIA’s Cannabis Caucuses

NCIA’s first round of Quarterly Cannabis Caucuses were a powerful example of how we can build a successful industry together. But don’t take our word for it! Check out the video above to hear from attendees themselves.

Don’t miss out on your next opportunity to be a part of NCIA’s influential, information-packed quarterly event series. Cannabis Caucuses are FREE for NCIA members, and just $50 for non-members.

Register today for the Q2 Cannabis Caucuses, coming to a city near you in April!

Oregon – Portland, OR – Tuesday, April 12 – REGISTER NOW
Mid-Atlantic  – Washington, D.C. – Tuesday, April 12 – REGISTER NOW
Northeast  – Boston, MA – Thursday, April 14 – REGISTER NOW
Florida  – Miami, FL – Thursday, April 14 – REGISTER NOW
Midwest  – Chicago, IL – Tuesday, April 19 – REGISTER NOW
Tri-State  – New York, NY – Tuesday, April 19 – REGISTER NOW
Colorado  – Denver, CO – Thursday, April 21 – REGISTER NOW
Southwest  – Phoenix, AZ – Thursday, April 21 – REGISTER NOW
Nevada – Las Vegas, NV – Tuesday, April 26 – REGISTER NOW
So. California  – Newport Beach, CA – Tuesday, April 26 – REGISTER NOW
No. California  – San Francisco, CA – Thursday, April 28 – REGISTER NOW
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Member Spotlight: Naturally Mystic Organics

For NCIA’s March member spotlight, we cruise into Santa Cruz, California, to chat with the owners of Naturally Mystic Organics. Owners D’Angelo “Cricket” and Jozee Roberto offer the knowledge and traditions of ancient herbal medicine paired with their dedicated advocacy work in Santa Cruz on behalf of cannabis patients and environmental sustainability.  

Cricket and Jozee, Naturally Mystic Organics

Cannabis Industry Sector:

Cannabis Infused Medical Products

NCIA Member Since:

May 2015

Tell us a bit about you and why you started Naturally Mystic Organics?

As we’ve raised our seven children over the past 23 years using plant medicines (non-cannabis), we’ve witnessed first-hand the amazing power herbs have to offer. We both have had the pleasure of growing up in California and being raised within the cannabis movement. Along the way we came to develop a personal relationship with cannabis as we’ve witnessed and experienced its numerous benefits. Quite compelled, we decided to share our high standards of what we consider to be real medicinal healing as an offering to the world.

Why should patients seeking medical cannabis look for products made by Naturally Mystic Organics?

naturallymystic_jozeeWe specialize in high-CBD products and provide the finest tinctures and topicals on Earth. We approach cannabis like an herb. As herbalists we take special care to craft with ancient methods, avoiding the use of metal to extract or infuse. We use glass, ceramic, and bamboo equipment and instruments.

In herbalism, as in any area of life, we learn that your final product is only as good as what you start with. For example, we pick only the best (top shelf) cannabis flowers for our tinctures, never trim, that has been grown with loving care and without the use of harmful pesticides or chemicals. Our topicals are made from the trim of these beautiful flowers. The spiritual connection between the plant energy and the herbalist is maintained throughout our process by setting the intention of health and well-being during production through prayer, silence, or chanting. If someone is having a bad day then that person does not make the medicine until a well-balanced attitude is in place. All other materials put into our products are certified organic and GMO-free. And to put the icing on the cake, we use violet glass bottles for our tinctures. Eliminating light is a supreme way to eliminate contamination after opening.

Tinctures provide a great alternative to consuming cannabis, as opposed to smoking it. Our tinctures, formulated for consistency and reliability of potency, are a great way to monitor dosage. Providing patients an opportunity to connect with other plant medicine that they otherwise might never have, we pair cannabis with other amazing herbs to help guide an endocannabinoid system to the desired outcome. Our Pure 1000 line of tinctures is designed for patients with extreme situations. Oh, and by the way, our tinctures taste great. Perfectly preserved terpenes make it taste like you are drinking a bud.

We are proud to present our humble offering to the world: supreme traditional cannabis herbal medicine in the form of tinctures and topicals – products fit for royalty.

You’re based in Santa Cruz, California, where regulations are constantly changing. Several pieces of legislation have been proposed to further regulate and legalize cannabis throughout the state. How have you been involved in this process?

We, Cricket and Jozee, are founding members and representatives of RCSC (Responsible Cultivation Santa Cruz). Santa Cruz County has a wide acceptance for the medicinal value of cannabis. Care for the environment and the safety of our communities are also shared values. Our county had a somewhat advanced policy about cannabis prior to 2015 that led to reports of environmental degradation and an assault to the quality of life in some communities because of an influx of production. This became a real issue that forced the County Board of Supervisors to respond. Their response came in the spring of 2015 as a vote to ban all commercial cultivation. The cannabis community responded. RCSC hatched out of community meetings hosted by the CAA (Cannabis Advocates Alliance) and petitioned to referendum before the ban became law. Our referendum was a success. The county had a couple of choices at this point to repeal the law or to put it before the county for a vote. They decided to repeal it and then a couple of Supervisors proposed the creation of the Cannabis Cultivation Choices Committee, aka C4. C4 was created as a conversation between community stake holders to propose recommendations to the Board of Supervisors for cannabis policy. Naturally Mystic Organics cofounder D’Angelo “Cricket” Roberto represents RCSC on this committee.

Naturally Mystic Organics., representing RCSC with Rep. Sam Farr (D-CA)
Naturally Mystic Organics., representing RCSC with Rep. Sam Farr (D-CA)

Santa Cruz County is on the leading edge of cannabis policy in California. C4 began holding meetings at the beginning of September 2015 and at this point the cannabis community wanted a clear pathway to legitimacy. Sometime after that our state legislature passed a bundle of bills that our governor signed into law, aka MMSRA (Medical Marijuana Safety & Regulation Act). This legislation helped to shape C4’s discussion from ‘what could be possible’ to ‘what is possible.’ The shared values of Santa Cruz are the core to the framework that C4 is building on. The recommendations that come forth will be to protect our environment, to protect the health and safety of our communities, and to assure an adequate supply of medicinal cannabis. It is important to note that these recommended regulations are being designed to nurture our current cannabis community and will restrict expansion so that we do so responsibly.

Santa Cruz County is the second smallest county in the state. We have a great portion of the population in the rural areas and much of our terrain is on slopes greater than 30%. We have a lot to consider here. In regards to any aspect of the emerging cannabis industry the question always is: How much and where? There are a lot of details. This is an industry that has struggled illegitimately for way too long and the side effects have finally forced society to realize the sensibility of a regulated system. We’re proud to be a part of history and helping to shape the future of cannabis in California.

Why did you join NCIA?

Naturally Mystic Organics joined NCIA to become a part of the foundation that helps to solidify the future of national cannabis policy. We’ve been very effective on the local level and are in entrenched on the state level. It’s been said that as California goes, so goes the nation. As we help to advance the conversation we hope to lend our voice to the choir at NCIA. To understand that we’re ushering in a new era is to preserve what the cannabis movement has taught us – empathy. Empathy leads to compassion, and as the cannabis industry unfolds we need to pass the values our history has taught us. This can be done through sustainable business models that encourage innovation and provide a real living wage. Society is in the middle of an overhaul and cannabis is in the center of it all. A healthy society shapes policies rather than policy shaping society. The cannabis policy landscape across the United States is transforming right before our eyes. The industry will revitalize the economy and create jobs. It will provide opportunities consistant with the promise of America. NCIA has positioned itself in the center of the conversation – right where we want to be.

Contact Naturally Mystic Organics:

Website
Facebook
Twitter


Are you a member of NCIA interested in submitting a guest blog post? Please contact NCIA Communications and Projects Manager Bethany Moore for more information. 

 

NCIA Councils: Focusing on the Issues That Mean Most to You

by Laurence Gration, Director of Development

There is no question all NCIA members and staff work for the overall good of the industry. With an industry as complex as ours, it can be more effective to segment and specialize in order to achieve the goals of both the many and of the few.

Just as the Government Relations team at NCIA concentrate their efforts on lobbying and advocacy in D.C., with the goal of attaining federal policy change for the industry, several member-driven councils have been formed to engage the expertise and passion of those particular individuals and organizations for the overall good of NCIA and the industry.

These NCIA Councils work to gain or retain benefits for members, or to make general changes for the public good. Councils work through advocacy, public campaigns, and even lobbying to make changes in our industry. There are a wide variety of interest groups representing a variety of constituencies.

As the name suggests, these are groups that focus their energy on a single defining issue. The members of the Council are often quite devoted to the issue, and motivated by personal experiences or participation in ongoing social movements. There are a growing number of single-issue interest groups in NCIA.

The first NCIA-Council formed was the Minority Business Council (NCIA-MBC), which has the interest at heart of driving inclusion. Moreover, we resolve to maintain a business-based community that is respectful of all persons despite differences in age, citizenship, disability, ethnicity, gender identity or expression, geographic origin, language, marital status, nationality, philosophical beliefs, race, religion, sexual orientation, military service, socioeconomic status, or previous incarceration (for unjust marijuana offenses).

The Infused Products Council (NCIA-IPC) is focusing in on the edible and topical area of the industry, looking at what can be learned from the existing businesses and regulations, to be shared across the country for the benefit of the consumer and the manufacturer. There is no limitation on the issues here, with the thought that as we progress and delve deeper into the needs of this sector, it may split into differing groups with even more specialized interests. Regulation is the initial key focus, but that will continue to be pushed within the Council to ensure the infused product sector is helping shape its destiny, rather than being driven by irregular regulations from jurisdiction to jurisdiction..

Equally irregular in the industry is the human resources aspect. Whether we talk training, education, recruitment, or pay and benefits, the field is wide open and the rules are, too. The Human Resource Council (NCIA-HRC) has set up shop with the interests of both employees and employers in mind.

Proposed goals of this council are as follows:

  • Establish best practices for HR, Talent Management, and Learning & Development in the cannabis industry
  • Develop a job board for NCIA members
  • Utilize SHRM and other HR/recruiting organizations to help define HR/recruiting expertise
  • Share best practices among members of the HR Council
  • Providing educational materials to help NCIA member businesses better understand how to be compliant with federal and state employment laws
  • Provide guidelines to NCIA members around recruiting and employment practices

We have also been in discussion with members that are interested in councils on cultivation, marketing and advertising, and retail.

Let us know of your interests, and we will make it happen.


For more information, please reach out to NCIA’s Director of Development, Laurence Gration

Help Economists Determine the Cost of the Banking Crisis

Editor’s Note: From time to time, NCIA hears from researchers looking into an issue related to the cannabis industry. Recently, two Northwestern University economics Ph.D. candidates contacted us because they are studying the economic impact of the cannabis industry’s lack of banking access. In order to complete their research, they need real-world data from cannabis businesses like yours.

This blog post explains their research. We encourage our members to take part in their research, as the results can help support our case for an immediate banking solution. To get involved, contact them at bornstein@u.northwestern.edu or gaby@u.northwestern.edu.

By Gideon Bornstein and Gabriela Cugat

A large number of banks in this country are not willing to work with businesses in the cannabis industry, even when those sales are legal under state law. This is causing major difficulties for thousands of business owners that are forced to operate on a cash-basis. But are they the only ones to suffer? Using straightforward economic analysis we ask who is losing due to these restrictions. The short answer is – almost everyone. Not only businesses are being hurt, but also consumers. In addition, such restrictions also decrease the revenues of the government.

While it is not difficult to argue, as we do below, why restricted access to banking services is bad for the economy, quantifying the different costs is a complicated task. It requires rich data on the costs incurred by businesses together with modern econometric techniques. In the next few months, we plan on collecting the required data to tackle such task. We believe that quantifying these costs is both of scientific interest and of that of the legal cannabis industry. If you are in the legal cannabis industry and would like to get more information about our study, we encourage you to contact us! Our contact information is listed at the top of the page.

In economics, when we want to analyze the effects of a government policy on market participants (consumers and producers) a first and simple approach is to look at the changes in consumer surplus (CS) and producer surplus (PS). These two measures represent what consumers and producers win by participating in the market.

Figure1
FIGURE 1

As reference, Figure 1 shows what market equilibrium, CS and PS would be in the market for marijuana products if everyone had access to banking. If we think of the market demand function as representing how much consumers benefit from each transacted quantity, CS can be computed as the shadowed area in Figure 1 below the demand curve. Similarly, if we think of the market supply function as representing how much it costs to sellers to produce each transacted quantity, PS is the shadowed area in Figure 1 above the supply function.

FIGURE 2
FIGURE 2

What is the effect of banking restrictions on market equilibrium, CS and PS? Not having access to banking implies that producers have to take additional measures in order to be able to sell: install ATMs, hire security companies, allocate extra time to counting and moving cash, etc. This means that for each quantity transacted, the cost of doing so is higher than before. For the sake of simplicity, let’s think that these extra costs can be measured in dollars and correspond to a linear cost of $T per unit. In this case, such increase would shift the market supply curve as shown in Figure 2. Market equilibrium would feature a higher price and lower quantity.

We can decompose the effect on CS and PS as shown in Figure 3. There are two factors that reduce both CS and PS. First, consumers and producers share the burden of the extra cost generated by the lack of access to banking, this is represented by area X in Figure 3 that reduces both surpluses. Second, since the quantity transacted is now lower than before, there is an irrecoverable loss for both consumers and producers represented by area D in figure 3.

FIGURE 2
FIGURE 3

What is the difference between areas X and D? Well, area X is not entirely a loss to society as a whole: it includes payments to security companies, so it is a transfer from one sector to another, but it also includes the cost of the extra time needed to process cash payments, which could be better allocated to leisure or working in something else. Area D, on the other hand, is entirely a loss to society: if the market had access to banking, costs would be lower and quantity transacted would be greater and at a lower equilibrium price. New consumers would be incorporated into the market, and existing consumers would pay less.

Gideon Bornstein and Gabriela Cugat are two economics PhD candidates from Northwestern University in Evanston, Illinois, who are studying the costs incurred by businesses transacting only with cash.

Video Newsletter: Member Spotlight on Cresco Labs from Chicago

This month, NCIA’s video newsletter introduces you to one of our members based in Chicago.

Cresco Labs is a medical cannabis company licensed to develop and operate medical cannabis cultivation centers in Illinois.

James Beard Award-winning chef Mindy Segal recently joined the team to head up the edible product line at Cresco Labs. Meet Mindy, as well as Cresco CEO and founder Charles Bachtell, as they share a bit about their company partnership and how they got involved in the National Cannabis Industry Association.

You can meet the Cresco Labs team and more than 3,000 other cannabis industry leaders at the 2016 Cannabis Business Summit in Oakland, CA, June 20-22. Get your tickets today!


Want your voice heard in our nation’s capitol on issues affecting the cannabis industry? Join us for our 6th Annual NCIA Member Lobby Days in Washington, D.C., on May 12 & 13, 2016.

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Guest Post: Mr. Seeb Goes To Washington

by Ean Seeb, Denver Relief

Editor’s Note: In January, Ean Seeb, who serves on the Board of Directors for NCIA and is co-founder of Denver Relief and Denver Relief Consulting, coordinated with NCIA’s Director of Government Relations Michael Correia to arrange personal meetings with congressional offices in Washington, D.C.

Ean Seeb speaks at NCIA's Policy Symposium in 2015
Ean Seeb speaks at NCIA’s Policy Symposium in 2015

In December, while planning for a January business trip to Washington, D.C., I realized that I should take the opportunity to use some downtime to lobby Capitol Hill offices on issues affecting the cannabis industry. I reached out to NCIA’s Executive Director Aaron Smith and Director of Government Relations Michael Correia and announced my intention. I was amazed at their responsiveness and support for my idea.

The whole planning process was quite easy. I let them know the date I was available and the focus of my trip and let the D.C. office coordinate logistics. Denver Relief Consulting has business interests in Hawaii and I wanted to focus on that state’s Congressional delegation. My goals were to update offices on medical marijuana implementation in Hawaii and ask these offices to co-sponsor The Small Business Tax Equity Act of 2015 (S. 987 & H.R. 1855), which amends Internal Revenue Code Section 280E to allow cannabis businesses in compliance with state law to take standard tax deductions and credits relating to business expenses.

The trip went very smoothly. I met up with Michael the evening before our meetings to discuss issues and logistics. Although I am well-versed on issues affecting our industry, it was really informative for me to sit down with him and discuss our focus, strategy, and talking points. We were joined by NCIA Member Tae Darnell, CEO of Sensi Media, whose background on cannabis reform in Hawaii goes back many years and was a great asset to our meetings.

 

 

We visited offices in both the Senate and House of Representatives, and each office was very informed about cannabis issues, was responsive to our concerns, and asked insightful questions. I remember back in 2013 when NCIA held its 3rd annual member lobby days. During those meetings, staffers would drop their jaws and say “You’re here to talk about what?” It was almost humorous because, back then, staffers were still in shock that cannabis issues were being brought to them. This time, one of our meetings lasted a full hour! The reception from congressional offices has evolved significantly over the past five years, and that can be attributed to the work NCIA has done on the ground.

 

The National Cannabis Industry Association's 5th Annual Lobby Days in Washington, D.C.
The National Cannabis Industry Association’s 5th Annual Lobby Days in Washington, D.C.

Although our meetings were with Democratic offices, who tend to be supportive of our issues, they were still not co-sponsors of legislation that would solve our 280E tax problems. The offices really appreciated tying the issue to Hawaii and answering questions specifically related to the state and how 280E will negatively affect their constituents. Each of the offices will discuss co-sponsoring legislation in the future, and our D.C. office will continue working with them to gain their support.

I did my homework with information provided by NCIA through newsletters, packets, and the website. An hour’s worth of studying on the front end made for some really powerful and effective meetings. As an NCIA member, it was personally and professionally fulfilling to be able to leave the Capitol thinking, “Today, I made some good progress on our issues, and for our industry, through the work done with these folks.”

 

I wholeheartedly encourage other NCIA members not only to go to NCIA’s 6th annual Member Lobby Days in May — but also to go to D.C. on your own. The NCIA Government Relations team will be there with you every step of the way.

As I was leaving, Michael said, “Please tell other members who happen to be traveling to D.C. that we are available for any NCIA member, at any time, who wants us to coordinate personal meetings with congressional offices.”

If you are interested in contacting NCIA’s Government Relations department to schedule meetings with Members of Congress in Washington, D.C., please email Government Relations Coordinator Michelle Rutter at michelle@thecannabisindustry for more information. 


 

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NCIA’s High-Impact Quarterly Cannabis Caucuses – Q1 Photos and Feedback

Last week we wrapped up the first quarter of our newly established event series, the Quarterly Cannabis Caucuses. Thanks so much to the nearly 500 members, speakers, supporters, and volunteers that engaged with NCIA’s federal advocacy work at caucuses in twelve cities across the country!

Take a look at these photo highlights and member testimonials from the first quarter and get registered for the Q2 Cannabis Caucuses, coming in April!

The National Cannabis Industry Association's First Quarterly Colorado Cannabis Caucus



“Last night we attended the National Cannabis Industry Association meeting and were reminded about the crucial importance of advocacy in this election year. The continued reform of our drug laws and the nation’s growing access to cannabis is not a given.
Kiva Confections


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“I had the pleasure of attending both the Denver and Las Vegas NCIA caucuses and can’t begin to say enough good things. The content, location, and format were on point. I got to catch up with lots of colleagues, who were able to introduce me to prospective customers, and I was also able to meet several new entrants to the industry. I made amazing business connections and was able to set up 5 meetings for the following day.”
Amanda Ostrowitz, Co-Founder & Chief Strategy Officer, CannaReg§



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“Last night at NCIA’s Quarterly Cannabis Caucus, I opened it up by expressing the importance of national advocacy. We all know the importance of local and state advocacy but the biggest threat to my business is 280E. This is the IRS tax code that does not allow dispensaries to write off ANY expenses. We just want to be treated like every other small business in America. This tax theft will happen every year until the tax code changes. Simply put, the IRS has robbed me and my patients. This is just one reason why federal law MUST CHANGE. Get involved, get active, and join the National Cannabis Industry Association.”
 – Aaron Justis, Buds & Roses



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Looking for downloadable versions of the information we provided at the first round of Cannabis Caucuses? Check out our Cannabis Caucus Resources page.

The next events in the Quarterly Cannabis Caucus series will come to you in April. So check out the dates below, mark your calendar, and register online now by visiting the NCIA Events page!

Q2 QCC CalendarHave any feedback from an event you attended? Want to suggest a particular topic you would like covered at our next Cannabis Caucus in your area? Fill out our short attendee survey to provide us with valuable feedback we’ll use to improve future events.

Interested in sponsoring an upcoming Cannabis Caucus in your area or a series of events across the country? Check out our Cannabis Caucus sponsorship guide which outlines pricing and benefits, as well as discounts on packages for our third annual Cannabis Business Summit & Expo taking place this year in Oakland, June 20-22.

See you at the next Caucus!

New Cannabis Banking Action in the House

On Tuesday, February 2, the U.S. House of Representatives Committee on Rules held a hearing on the Financial Institution Customer Protection Act of 2015 (H.R. 766). This bill prohibits federal agencies – including banking agencies – from terminating certain bank accounts simply due to the nature of their business. The bill was introduced by Rep. Blaine Luetkemeyer (R-MO), as a response to the Department of Justice’s Operation Choke Point, which puts banks under scrutiny for their work with businesses the DOJ considers at risk for fraud or illegal activities, even when the businesses themselves are operating legally. Rep. Luetkemeyer’s bill would limit law enforcement’s ability to restrict access to the banking system.

To watch the hearing, view here:
https://rules.house.gov/video/rules-committee-hearing-hr-766-and-hr-1675

Longtime cannabis champion Rep. Ed Perlmutter (D-CO) used this hearing as an opportunity to offer an amendment to the legislation. His amendment would have allowed banks and credit unions to offer financial services and maintain relationships with state-legal, licensed cannabis businesses, without fear of federal prosecution. In addition to Congressman Perlmutter’s testimony, Representatives Jared Polis (D-CO) and Alcee Hastings (D-FL) spoke in favor of the amendment.

When NCIA first learned of the hearing last week, our Government Relations office coordinated with Rep. Perlmutter’s staff and advocated for the amendment with Rules Committee Members and staff. Although our cannabis champions on Capitol Hill spoke eloquently on behalf of the amendment, the committee ultimately voted it down. The 3-9 vote broke along party lines, with all Democrats voting in favor and all Republicans voting in opposition.

NCIA salutes all our Capitol Hill advocates who continually stand up for the cannabis industry, and especially Rep. Perlmutter for taking the lead on banking reform. Although this effort fell short in the end, it served as a powerful message to Members of Congress that NCIA and its allies will look for every opportunity to fight for the fairness and respect our industry deserves.

This year will be truly historic for cannabis reform and it’s time for Congress to clarify the conflict between the federal government and the states on cannabis and address this vital issue. NCIA continues to advocate on your behalf every day so that all legal, state-sanctioned cannabis businesses may eventually access financial services and stop being discriminated against.

Guest Post: Supplementing Greenhouse Lighting in Winter Months

By Shelly Peterson, Vice President, urban-gro

urbangro3As the seasons change, so does the amount of light that enters into your greenhouse. Summer months may offer an abundance of natural light; however, the longer nights of winter require supplemental lighting for growers to achieve the best yield possible from their crop. Some greenhouse facilities shut down during the winter months due to natural lighting restraints, but there are easy solutions that can mean more harvests and bigger profits for growers. The first step is to target a daily light interval (DLI) number for each facility and design the supplemental light accordingly. This ensures optimal light intensity and uniformity in the facility year-round.  

On Site

Recently, Colorado marijuana cultivators have begun to move into more efficient greenhouse structures. With proper planning and execution, these growers are experiencing as much or more success as indoor gardeners. It does take proper planning to get through the short days of the winter, and owners are turning towards horticulture companies to help them succeed. Based on the sun’s position in the geographical region, high tech control systems with DLI sensors can be installed to measure when the natural light falls below a certain level and the supplemental light is needed to optimize growth.

urbangrogreenhouseFor example, at urban-gro, once we know the facility’s DLI and obstructions within the greenhouse structure, we begin the planning process and consider technical factors for the layout of the lighting system. Ensuring optimal lighting layout for the grow facility is the top priority. Incorporating lights into the structure so they create minimal shadowing is critical; this ensures that the crops are getting the optimal amount of natural light when the sun is shining. 

Today, most grow facilities use 1,000-watt DE HPS light fixture, which is the most efficient light source on the market for the plant canopy. Once the lighting system is installed, it is essential that the correct intensity is aligned with the crops’ growth stage, which ranges from veg to bloom. We schedule a gradual increase of light intensity so yield is maximized and never harmed.

End Result

With supplemental lighting, cultivators can guarantee the correct amount of lighting and environmental controls for the winter months to ensure yields and profits. 


Shelly Peterson serves as Vice President of Sales for urban-gro for the last three years. Shelly manages the company’s sales force located across the country. Her passion for eco-friendly solutions and creating a sustainable environment ensures that the commercial cultivator is provided with a lighting plan that utilizes the least amount of equipment. Further, her skills learned in the commercial lighting industry have enabled her to work with regional electrical providers to maximize available utility rebates for urban-gro’s customers. Urban-gro is a Sustaining level member of NCIA since November 2014. 

 

Member Spotlight: New Economy Consulting

NCIA’s member spotlight for the month of February takes us to Oregon, where we speak with Sam Chapman, co-founder of New Economy Consulting, a political and business consulting firm for the legal cannabis industry. Sam’s background includes consulting for statewide political campaigns, small business development and media relations, as well as direct involvement as a lobbyist for drug policy reform at the local, state, and federal levels. Having Sam in the room at an NCIA event always raises the dialogue with his insight and expertise, and we’re glad to have him as part of the NCIA community. 

Cannabis Industry Sector:

NECRegulatory Compliance and Consulting

NCIA Member Since:

December 2013

Who does New Economy Consulting work with?

NEC provides a range of services and support to cannabis entrepreneurs, investors, and local governments. We specialize in drafting state license applications, writing and navigating local regulations, screening compliant real estate, regulatory compliance support, and political advocacy.

The New Economy Consulting Team
The New Economy Consulting Team

How do you serve your clients?

On behalf of our clients, NEC handles all aspects of licensure for retail, wholesale, production, and processing facilities. We provide clients with a holistic approach, encompassing services from locating and screening compliant property, to compliant buildout design and supervision, to local and state compliance inspection support.

What makes NEC unique?

NEC is unique in that our business consulting services are directly informed by our active political lobbying. Our researchers maintain a finger on the daily pulse of regulatory movement in the industry at both the state and local level. We strategically deploy our proprietary research in support of our client’s business ventures. An example of where NEC goes above and beyond for clients is in tracking the local regulations of over 90 Oregon counties and cities. This body of research allows NEC to quickly and confidently screen property and determine that property’s compliance with current and expected rules and regulations.

Sam Chapman, NEC co-founder
Sam Chapman, NEC co-founder

What has been NEC’s largest impact on the Oregon cannabis industry?

Before I co-founded NEC, I helped write and pass HB 3460, which legalized and regulated medical dispensaries in Oregon. NEC has successfully championed many pro-industry causes including raising more than $30,000 in support of Measure 91, legalizing the adult use of cannabis.

What should clients know before contacting NEC?

NEC is a boutique firm with a strong commitment to our clients. We choose our client and partner relationships with care. Our ideal client is well-capitalized, with business experience inside and out of the cannabis industry, has a clear vision of their project goals, and shares in our vision of creating and maintaining an industry to be proud of. We take great pride in contributing to the new marijuana economy while simultaneously supporting and shaping social justice reforms at the state, local, and federal level.

You work primarily in Oregon, which is an evolving landscape when it comes to marijuana policy and regulations. Can you briefly summarize the important regulatory frameworks that exist for business owners, and what changes are on the horizon for this market?

The Oregon Legislative Committee on Marijuana Legalization is considering many changes to the existing recreational program, including the potential removal of the residency requirements for recreational licenses. The committee has historically been hesitant to allow out-of-state majority ownership of Oregon marijuana businesses. However, many committee members have recently expressed that they now view residency requirements as a barrier for local business to raise much-needed capital.

While there is no guarantee that the current residency requirements will be eliminated, NEC has already begun to identify current and future market opportunities available to out-of-state business owners and investors.

Why did you join NCIA?

NEC enthusiastically joined NCIA as a member in 2013 and supports NCIA’s strategic lobbying at the federal level and especially their focus on our industry’s need for banking reform and 280E tax solutions. We strongly feel that the National Cannabis Industry Association is the tip of the spear when it comes to fighting for the federal reforms that affect all marijuana businesses on a daily basis.

Contact:

New Economy Consulting website

State of the States: NCIA’s Affiliate Program

What is NCIA’s state affiliate program?

Over the last two years, members from particular states have approached us here at NCIA with the idea of forming state-focused affiliates. While NCIA’s mission is dedicated to federal policy change and the support of a national industry that is coordinated, sustainable, and responsible, we’ve begun a journey with a few of these dedicated members looking to do the same at the state level. Many of our members are already familiar with our state affiliates in California and Illinois.

NCIA dedicates its policy work to issues at the federal level, which informs the playing field for all 50 states. However, individual state cannabis markets have their own unique needs and challenges. An NCIA state affiliate is tasked with pursuing the same priorities as NCIA’s federal mission – advocacy, education, and community – but with a zoomed-in focus on state legislation and regulations, city ordinances, and local networking and business development. The combination of NCIA and a state affiliate gives members a powerfully unified voice in influencing legislation that is fair towards our industry.

How does the state affiliate program work?

Each state affiliate is an independent entity from NCIA, which elects its own board of directors and has its own decision-making processes. The affiliates are non-profit organizations, and dues are collected from members to be used for state advocacy work.

Membership dues for the state affiliate are split between the state affiliate and NCIA, and members of the state affiliate are automatically added to the rosters of NCIA’s national membership, although many members still choose to maintain separate memberships with both the state affiliate and NCIA.

Our state affiliates currently exist in the two most populous states with active medical marijuana programs in place: California and Illinois. We checked in with the leadership of each affiliate to hear more about their progress and activities at the state level.

 

CCIA-LogoCCIA-Logo-300x294California Cannabis Industry Association (CCIA)

CCIA’s Executive Director and co-founder is Nate Bradley, who works closely with their official lobbyist, Amy Jenkins, to influence fair legislation and policies for the ever-evolving cannabis industry. CCIA’s membership currently sits at 132 members and growing. 

“In 2015, CCIA hosted numerous well-attended membership networking and educational events throughout the state,” says Bradley. “We also added new staff to our ranks. In the fall we hired a Membership Coordinator. This in turn greatly increased our ability to reach out and provide services to our current members and build new membership at the same time.”

CCIA focuses on the state regulatory structure for California’s cannabis industry, working to influence regulations for the medical marijuana industry in the state legislature. CCIA has endorsed the Adult Use of Marijuana Act (AUMA), a full legalization state ballot initiative being proposed for 2016. 

“More than any other legalization measures competing for the 2016 state ballot, AUMA represents the collective input of California’s lawful medical cannabis industry,” said CCIA President Sean Luse, who is also COO of the nation’s longest continually operating medical cannabis dispensary, Berkeley Patients Group.

So what are CCIA’s plans for the upcoming year?

“CCIA has a lot of big plans for 2016,” says Bradley. “Currently we are planning on bringing a new deputy director, increasing the amount of events we hold, developing our local government outreach program, and increasing the amount of membership committees we have.”

“We will also be heavily involved in any legislation clean-up, tracking the regulatory rule-writing process, and last but not least, making sure we are actively involved in influencing any cannabis ballot initiatives that may go before voters in November.”

CCIA’s 2015 victories are listed here, along with details of the requests that were successfully negotiated and included in the Medical Marijuana Regulation and Safety Act.

 

IllinoisCIA_Logo_FNL_RGB_ForWebIllinois Cannabis Industry Association (ILCIA)

Kayvan Khalatbari, co-founder of Denver Relief, serves on the board of directors for ILCIA and offers insight into the progress of its formation over the last year. “With all the work the National Cannabis Industry Association is doing to progress policy, advocacy, and education on the federal level, it’s important to have that same influence on the state level,” says Khalatbari.

“We’re working hard to create a model that is in line with NCIA’s mission and tone, but also considerate of the cultural and political nuances present in Illinois. We’ve assembled a great group to form our initial board of directors, which includes cultivation and dispensary operators, attorneys, lobbyists and ancillary service providers… in a sense, most stakeholders in this new and exciting industry. We intend on bringing aboard a doctor and a patient representative as well in this new year to ensure all voices relevant to the success of this industry have a seat at the table.”

kayvan
Kayvan Khalatbari, co-founder of Denver Relief and board member of ILCIA

“With our current 25 members we have some room to grow, but have no doubt that will happen as we become more active and visible in 2016. Between assisting in the development and implementation of the NCIA local Cannabis Caucuses here in Chicago, assembling our own quarterly educational symposiums, networking events, and a lobby day in April, as well as collaborating with other groups to add qualifying conditions in the medical cannabis program, we’re poised to make a big push in having a positive and responsible influence as this industry gets off the ground here.”

“The bridge to our national partners at NCIA can only benefit that push forward and help ensure that cannabis businesses in Illinois are represented at all levels of government for years to come.”

 

Looking to get involved in one of our state affiliates? Visit their websites:

CCIA – www.cacannabisindustry.org

ILCIA – www.ilcia.org

 


Join us for our 6th Annual NCIA Member Lobby Days in Washington, D.C. on May 12 & 13, 2016.

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2016: What’s Next?

by Michelle Rutter, Government Relations Coordinator

This year is arguably the most crucial yet for the burgeoning cannabis industry, especially as it relates to policy. Although NCIA primarily advocates for cannabis reform at the federal level, what happens in each individual state is vital to the stances Members of Congress take on our issues.

Members of Congress care deeply about issues that directly affect their specific state or district. It’s imperative that more states enact cannabis reform legislation so that more Members have a vested interest in protecting their constituents. While cannabis reform is sweeping the nation at an almost unprecedented rate, it takes time for politicians in Washington, D.C., to catch up with public opinion back home. If all of the federal lawmakers representing just the 15 states mentioned below were to vote positively on pro-cannabis legislation, it would add up to more than 180 Representatives and nearly 30 Senators.

Take a look below and see what’s coming up next in 2016. Remember that by becoming a member of NCIA, you are adding your voice to the coordinated and unified campaign at the federal level to allow cannabis businesses access to financial services, fix tax section 280E, and ultimately end federal cannabis prohibition.

The United States of Cannabis

          • Arizona activists remain ahead of schedule and have nearly gathered the 150,000 signatures needed to put the state’s Campaign to Regulate Marijuana Like Alcohol initiative on the November 2016 ballot. (The campaign ultimately aims to collect 230,000 in order to insure against signature drop-off.) It’s estimated that Arizona’s adult-use market could be worth up to $480 million.
          • With a multi-billion-dollar cannabis industry in California alone, passing an adult-use legalization initiative in the state is vital to ending federal prohibition. The most prominent full retail initiative gathering signatures for the November 2016 election is the Adult Use of Marijuana Act, which is backed by billionaire Sean Parker and the Marijuana Policy Project.
          • Legalize Maine and the Marijuana Policy Project have joined forces to legalize adult-use cannabis in 2016. Legalize Maine has already collected 80,000 signatures. Only 61,000 signatures are necessary to place the measure on a statewide ballot, but the organization’s goal is 95,000, to insure against drop-off. The deadline to submit signatures is February 1st.
          • Last August, a pair of cannabis advocacy groups separately filed paperwork to get adult-use legalization on the 2016 ballot in Massachusetts. The state recently confirmed that a measure to legalize recreational cannabis next year has enough valid signatures to force the legislature to consider the measure. If the legislature decides to pass, then the campaign will have to collect another 10,792 signatures to formally make the November ballot.
          • There’s no question that adult-use legalization will be on the ballot this year in Nevada. Initiative Petition 1, which would tax and regulate marijuana similarly to alcohol, has been certified for the 2016 ballot. Backers had previously collected nearly 200,000 signatures to either force legislators to enact their initiative or put it on the ballot. When state lawmakers abstained from voting on the issue, the measure was automatically forwarded to this year’s ballot for a popular vote.
          • In Florida, the group United for Care received clearance from the state Supreme Court for a 2016 ballot measure that would legalize medical marijuana. The group nearly succeeded in legalizing medical marijuana in 2014, garnering 58% of the vote but falling barely short of the state’s constitutionally mandated 60% margin needed to pass, 
          • The nation’s capital continues to debate cannabis. In December’s federal budget bill, the taxation and regulation of marijuana in Washington, D.C., was blocked by Congress again, though possessing and gifting cannabis remains legal in the city.
          • This month, Hawaii will begin accepting applications for medical cannabis businesses. The bill signed into law last summer opens the door for up to 16 dispensaries on the islands.
          • It was recently announced that Illinois saw approximately $1.7 million in medical cannabis sales during November and December of 2015. There are already petitions being circulated in the state that would expand the law’s qualifying conditions.
          • Maryland will award cannabis cultivation, processing, and dispensary licenses this summer. Industry advocates were pleased with the amount of interest the state’s program garnered: more than 1,000 applications were submitted.
          • Officials in Michigan have approved language for three different adult-use cannabis legalization initiatives for the 2016 ballot. In order to have the best chance of passing, it’s important for these groups to coalesce behind one initiative.
          • At the end of 2015, New Hampshire began issuing medical marijuana cards to qualifying patients. It’s expected that the state will open medical dispensaries in 2016.Map-of-US-state-cannabis-laws
          • After a long and arduous journey, New York’s medical cannabis program became operational this month. The cannabis industry expects the program and the law’s qualifying conditions to expand this year.
          • In the first week of 2016, Oregon began accepting adult-use cannabis business license applications. The state has no limit on how many licenses they will decide to award.
          • Vermont may become the first state to legalize adult-use cannabis through the legislative process in 2016. The proposed bill would allow for up to 86 storefronts and five different business license types.

 

Bonus: Election 2016 – Yes, We Canna

            • As we all know, a new president will be elected this November, and with that a new administration will assume power next January. It is very crucial that Congress pass more pro-cannabis legislation before then.
            • It’s probable that Attorney General Loretta Lynch will be replaced in 2016 or early 2017. This is important because it is the Department of Justice that enforces and prosecutes federal marijuana laws.
            • Another possibility for 2016 is that the acting head of the Drug Enforcement Administration, Chuck Rosenberg, could be replaced as well. Rosenberg is notorious for his gaffe last year when he called marijuana “probably” less dangerous than heroin.
            • On New Year’s Eve, officials from the Substance Abuse and Mental Health Services Administration posted a notice on the Federal Register that calls for a report “presenting the state of the science on substance use, addiction and health” to be released in 2016. Industry advocates are hopeful that this report could be the first sign of re- or de-scheduling cannabis from the Controlled Substances Act.
            • During 2016, NCIA will continue working with D.C.-based public affairs firms Heather Podesta + Partners, and Jochum Shore & Trossevin PC to magnify our efforts to address the industry’s top federal priorities: access to basic banking services and fair federal taxation.

 

In addition to NCIA’s lobbying and advocacy efforts, NCIA exists to connect and educate our members on all facets of the cannabis industry. Our industry supports tens of thousands of jobs, tens of millions in tax revenue, and billions in economic activity in the United States. Our core mission is to ensure that our members are treated like businesses in any other American industry. Join NCIA today to get involved and be a part of the cannabis revolution!


Join us for our 6th Annual NCIA Member Lobby Days in Washington, D.C. on May 12 & 13, 2016.

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Video Newsletter: The Fourth Corner Credit Union Ruling and What You Can Do

We’re back with NCIA’s first video newsletter of 2016!

Earlier this month, a federal judge dismissed a lawsuit filed against the Federal Reserve by the Fourth Corner Credit Union, which had planned to provide banking services to the cannabis industry, but was denied a master account by the Fed.

Watch this month’s video to find out how the ruling affects NCIA’s work to pass a banking solution in Congress and how you can help by pressuring Members of Congress to pass the Marijuana Business Access to Banking Act.


 

Want your voice heard in our nation’s capitol on issues affecting the cannabis industry? Join us for our 6th Annual NCIA Member Lobby Days in Washington, D.C., on May 12 & 13, 2016.

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Announcing NCIA’s January – June 2016 Events Calendar

As we head into the new year, we wanted to share with you our upcoming event calendar for the first 6 months of 2016! This includes the Q1 and Q2 events in our new event series, the Quarterly Cannabis Caucuses, a fundraiser for our federal PAC where members of our Board of Directors will be present, our 6th annual Federal Lobby Days, and our 3rd annual Cannabis Business Summit.

Click on the images below for more information on the upcoming events.

Quarterly Cannabis Caucuses

Federal PAC FundraiserPAC - 160122 - 1200x630 (1)

6th Annual Federal Lobby Days
Cannabis Business Summit

So what are you waiting for? Register for an upcoming event today!

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Do you have questions regarding any upcoming events in your area or others across the country? Reach out to events@thecannabisindustry.org any time with your questions, comments, or concerns.

Interested in sponsoring one or a series of events in a particular region throughout the year in order to gain valuable exposure for your company to our nationwide network of established business owners? Please contact Brian Gilbert at brian@thecannabisindustry.org for more information on series rates and associated discounts for packages.

Interested in speaking at the upcoming Cannabis Business Summit? Please contact brooke@thecannabisindustry.org for more information on remaining opportunities.

Help NCIA’s Inclusion Initiative Expand in 2016

Congratulations and thank you for a great 2015.

NCIA’s Inclusion Initiative, headed up by our Minority Business Council (NCIA-MBC), had a good start this year, and we were able to make a difference for dozens of people in the cannabis industry or working to enter the industry. Considering the Council had its first formal meeting only seven months ago, we have achieved a great deal in raising awareness and beginning to take on the mandate of creating a more inclusive industry.

We also have a good start to 2016. We’ve added an Inclusion Initiative contribution option to the registration forms for the 2016 Cannabis Business Summit and have already begun building up the scholarship fund.

But we can never rest on our laurels, and the expectations of the industry are great. There is talk about what else we can do to help promote inclusion in this industry, and now is the time to start the discussion.

The next meeting of the NCIA-MBC will be a planning meeting at 2pm MT on Tuesday, January 19th. To join the meeting, simply call in to the conference call line at (303) 416-5167. (No PIN is necessary.)

With this meeting, we’ll seek to get a little more formal in our efforts. The goal is to establish a representative committee and meeting structure to ensure we are at the forward edge of our work and that what needs to be done is getting done.

In an effort to continue the development of this initiative and grow the opportunities for those who face barriers within the industry, we are putting forward the notion of creating a more formal structure – guiding the development of the NCIA Inclusion Initiative by expanding the Minority Business Council and establishing a less formal advisory committee as well.

Therefore, we seek your input into two areas:

Please review the proposed rules for serving on the NCIA Minority Business Council. Then let us know if you would like to serve on the Council under these rules or would like to stay or become involved with the Inclusion Initiative through the less formal advisory committee.

Proposed Requirements for NCIA Minority Business Council (MBC) Members

  • Council members must be employees of NCIA member-businesses
  • Council chair must be a member of the NCIA Board of Directors and thus report to and from MBC
  • Chair and Vice chair are elected by the Council members
  • Secretary is appointed from NCIA staff
  • Only one person from any given member-business can serve on the Council (but there is no limit to how many people from a business can serve on the advisory committee)
  • Council members must be able to attend at least 3 in-person meetings and 3 telephone meetings during a calendar year
  • Council members must commit to a minimum financial contribution to MBC activities (examples: scholarship pledges, in-kind donations, etc.), exact amount to be determined by the Council at an affordable level to all

We believe the optimal number of people on the Council would be about 12, so we are looking for 12 strong volunteers who have a point-of-view and are eager to contribute on these critical issues.

If you own or are employed at an NCIA member-business, please feel free to nominate yourself for the Council. We also welcome your recommendations for others for us to follow through on and ensure we have the best recruits we can get.

Even if you are not part of an NCIA member-business, we invite you to join the advisory committee for NCIA’s Inclusion Initiative. On this advisory committee, you will be invited to every meeting and kept fully informed of action and activities, as well as have direct input into the Council and the Inclusion Initiative.

Please let us know of your involvement and interest before January 11th, so we can schedule a meeting and put structure in place for fuller development.

And as we head into 2016, we invite you to suggest and share resources for the Inclusion Initiative page on NCIA’s website, so that we can build it into a helpful presence for those looking for industry support and knowledge.

Thank you for your interest in the Minority Business Council and NCIA’s Inclusion Initiative. We look forward to expanding and building upon the success of 2015!

NCIA’s Minority Business Council:
Robert Van Roo, Palm Springs Safe Access
Joshua Littlejohn, Accannadations LLC
Dr. Lakisha Jenkins, Kiona T. Jenkins Foundation for Natural Health
Luke Ramirez, Walking Raven LLC

Appropriations Pros and Cons in 2015 for Cannabis

by Michelle Rutter, Government Relations Coordinator

Every year, Congress must pass appropriations legislation to fund the government for the upcoming fiscal year. This annual funding bill has been one of the only avenues by which pro-cannabis reform language can be inserted into the federal budget, due to Congress’ inability to pass meaningful stand-alone legislation addressing the legal cannabis industry.

This year, two riders were included in the budget bill pertaining to cannabis. The first, known as the Rohrabacher-Farr amendment, bans the Department of Justice from spending money to prevent the implementation of state-level medical cannabis programs, in addition to removing funding for federal medical cannabis raids, arrests, and prosecutions in states where medical cannabis is legal. When debated on the House floor this summer, the vote count increased from 219-189 in 2014 to 242-186 this year, with 67 Republicans voting ‘Yes.’ The Rohrabacher-Farr language was included in the final budget bill for the second year in a row, which is a promising sign of progress in Washington, D.C.

A rider known as the Bonamici-Massie amendment, which prevents the DEA from intervening with state-sanctioned and legal hemp, was also included in the final budget package. This section blocks federal money from being used to prevent states from allowing the use, distribution, possession, or cultivation of industrial hemp. It’s important to note that although this progress is promising, the DEA has ignored appropriations language pertaining to cannabis in years prior.

There were other commonsense policy reforms related to cannabis, which were proposed and added to earlier versions of the budget package, but which unfortunately did not make it into the final bill. A crucial example was a provision which would have prevented the Treasury Department from punishing banks that work with legitimate marijuana-related businesses. Another would have allowed Veterans Affairs (VA) doctors to recommend medical cannabis to veterans without fear of retaliation or punishment, and would have also prevented the VA from denying services to any veteran who is a medical marijuana patient.

An additional disappointment in the final budget package was the continuation of language from the previous year which blocks the adult-use sale and purchase of cannabis in Washington, D.C.

It’s important to remember that these appropriations amendments only protect states’ medical cannabis and hemp laws for the upcoming fiscal year and have to be re-included and voted on every year. While this progress is encouraging, it falls short of achieving our goals. NCIA will continue lobbying on behalf of the cannabis industry to achieve the substantive and lasting reforms that our businesses deserve.

Member Spotlight: Cannabis Basics

To kick off 2016, we speak with Ah Warner of Cannabis Basics, whose company saw a landmark year in cannabis policies in her state of Washington. She also recently won ‘Best Topical Brand’ at the 2015 Dope Industry Awards in Washington. Many in the industry and movement look up to her involvement in both her community and her direct activism, setting a tone for others looking to create a successful and responsible business in the cannabis industry.  

cannabis-basics-logo-2015Cannabis Industry Sector:

Cannabis-Infused Products

NCIA Member Since:

February 2013

How do you uniquely serve the cannabis industry?

We are dedicated to true whole genus cannabis topical therapy.

Cannabis Creations, now Cannabis Basics, was founded in 1995. Back in those days, there were many hemp body care manufacturers working with hempseed oil because of its amazing nutritive value for skin care. Today there are a host of cannabis topical producers that focus on cannabinoids from the plant and also CBD-derivatives from hemp that speak to our CB2 receptors. Cannabis Basics is this rare and beautiful place where the essential fatty acids and anti-inflammatory properties of hempseed oil and the multiple cannabinoids and terpenoids from cannabis are blended together with an arsenal of other botanical constituents to provide natural localized therapy for symptoms brought on by a myriad of conditions.

Why should customers seeking cannabis-infused topical products use Cannabis Basics?

ah-in-labWe never use animal products, man-made fragrance oils, or chemical preservatives. We buy locally and organically whenever possible. Supporting Cannabis Basics is also activism because it enables us to continue to work for the betterment of our industry and community as a whole.

Still working!

You achieved two important milestones in the cannabis industry this year: You secured one of the first U.S. cannabis trademarks, as well as achieving passage of the Cannabis Health and Beauty Aid Exemption. Tell us about that.

On August 25th, 2015, the USPTO awarded Cannabis Basics the first federal registration to a brand/logo displaying both the leaf and the word “cannabis” representing an actual product that contains cannabis, not a service or institution. Cannabis Basics has two distinct lines, one that contains cannabis (industrial hempseed oil) that can be sold anywhere in the world, and the other that contains cannabis (I.H. and multiple cannabinoids including THC) sold only in the state of Washington.

It is important to note that the USPTO did not award federal registration based on my cannabinoid line of products. Federal protection was awarded for my cannabis industrial hemp products however, and due to same branding, will by default provide protection to the entire Cannabis Basics family of products.

ah-with-senatorWhat started out as stand-alone sister bills with bipartisan support actually passed on June 30th as Section 7 of HB 2136, an I-502 tax fixer bill, and was signed into law by Governor Enslee. This law was enacted on July 1st, 2015, and is the first of its kind in the country. The CHABA law defines Cannabis Health and Beauty Aids for the first time in our legal lexicon as “cannabis products for topical use only, non-intoxicating and contains less than .3% THC.” It defines these products as not marijuana and allows for them to be sold to any mainstream retailer in the state of Washington, i.e., any health food stores, salons, or spas. The much larger significance of this new law is that it is the first removal of anything cannabis from the Washington State Controlled Substances Act.

I would be remiss if I did not take this platform to thank all the legislators who played a part in moving CHABA through Olympia, especially Washington State’s Cannabis Champion Senator Jeanne Kohl-Welles and my co-author/policy advisor Kari Boiter. The state of Washington and anyone who uses or produces CHABA are forever in your debt.        

Why did you join NCIA?

Our goal at Cannabis Basics is to make Cannabis Health and Beauty Aids accessible to all health-conscious consumers everywhere in the U.S. and to be able to export to any country that is interested in importing these types of products. Being a member of NCIA has given me access to the movers, shakers, and policy-makers so that I may work efficiently at this ultimate goal.

Contact:
Website
Facebook

NCIA Member Posts Year in Review

2015 has been a great year of growth and learning within our industry. Our members are invited to submit their guest blog posts throughout the year to share their wisdom and insight with our membership and followers. Today we look back at the year in Guest Posts. Did you miss any the first time around? Check them out here.

NCIA Staff Picks:

The National Cannabis Industry Association's 5th Annual Lobby Days in Washington, D.C.
The National Cannabis Industry Association’s 5th Annual Lobby Days in Washington, D.C.

Legislation, Rule-Making, and the Necessity to be a Unified Industry – October 7
By John Davis, Northwest Patient Resource Center

The Common Ground Between Advocacy and Business in the Cannabis Industry – March 2
By Adam Bierman, MedMen

Redefining the Business Battlefield: The Case for Boutique Cannabis – August 5
By Travis Howard, Shift Cannabis Co.

Regulating Marijuana: What Direction for FDA? – August 3
By Steve Goldner, Regulatory Affairs Associates

The ABC’s of CBD Claims – July 2
By Shawn Hauser, Vicente Sederberg

Year in Review

January

Tax Time – Using an LLC To Minimize Section 280E Selling Costs
By Luigi Zamarra, CPA

Banking Access – The Struggle Is Real for CannaBusiness Owners
By Luke Ramirez, Walking Raven LLC

February

Illinois Cannabis Businesses – Guidelines for Compliance with Illinois Employment Laws
By Jennifer Adams Murphy, Esq., and Ryan Helgeson, Esq., Wessels Sherman

Managing Your Talent – Your Greatest Asset!
By Carole Richter, CRichter ~ HR Consulting

March

Work and Well-Being in the Cannabis Industry
By Kevin M. Walters, Colorado State University

Women, Cannabis, and Self-Esteem
By Meghan Walstatter, PureGreen PDX

Best Practices for Interviewing Candidates in the Cannabis Industry
By Kara Bradford, Viridian Staffing

May

Top 6 Reasons to Hire a Dedicated Cannabis Marketing Agency for Your Business
By Kurt Whitt, Studio 420

Marijuana Millions – The Road Map to Your Success, Part 1
By Alexa Divett, Maya Media Collective, LLC

June

Marijuana Millions – The Road Map to Your Success, Part 2
By Alexa Divett, Maya Media Collective, LLC

July

THC – The Illusion of Its Value
By Rowshan Reordan, Green Leaf Lab

August

Favorable IRS Ruling – State Excise Tax May Escape 280E Treatment
By Luigi Zamarra, CPA

September

Growing Pains in Michigan
By Matthew Abel, Cannabis Counsel P.L.C.

The Potential of Brand Loyalty
By Patrick Hayden, Brightfield Group, LLC

Deal for Regulations Passes California Legislature
By Nate Bradley, Executive Director of California Cannabis Industry Association

October

Raising Money 101 – What’s an Offer and Why Does it Matter?
By Charles Alovisetti, Vicente Sederberg LLC

November

NCIA Board Chair Reflects on the Past Five Years
By Jaime Lewis, Mountain Medicine


Are you interested in submitting a guest blog post for NCIA’s website? Please reach out to Bethany Moore by emailing bethany@thecannabisindustry.org to propose your topic. 

 

Announcing the Quarterly Cannabis Caucus Event Series

Wow, where does the time go? The end of 2015 is in sight and 2016 is fast approaching! As per usual, these past 12 months made for another landmark year for our industry where we saw enormous growth across all sectors, as well as witnessed notable legislative victories in the House and the historic first-time introduction of cannabis-specific legislation in the Senate. We continue to see increased activity and support for our issues in D.C., due in no small part to our increasingly prominent voice within the halls of Congress, spearheaded by the work NCIA is doing with your support.

Take a look at a year’s worth of legislative highlights with our Year-in-Review timeline here.

Now, we are excited to announce that starting in January, we’ll be debuting a new nationwide event series! NCIA’s Quarterly Cannabis Caucuses will be held in the cannabis industry’s 12 most active regions, on Tuesdays and Thursdays in the first month of each new quarter. The exact date will vary depending on your region, and you can view the full list of dates and locations here. The schedule for the first quarter will be:

  • Oregon Cannabis Caucus – Portland, OR – Tuesday, January 12 – REGISTER NOW
  • Mid-Atlantic Cannabis Caucus – Washington, D.C. – Tuesday, January 12 – REGISTER NOW
  • Northeast Cannabis Caucus – Boston, MA – Thursday, January 14 – REGISTER NOW
  • Florida Cannabis Caucus – Orlando, FL – Thursday, January 14 – REGISTER NOW
  • Midwest Cannabis Caucus – Chicago, IL – Tuesday, January 19 – REGISTER NOW
  • Tri-State Cannabis Caucus – New York, NY – Tuesday, January 19 – REGISTER NOW
  • Colorado Cannabis Caucus – Denver, CO – Thursday, January 21 – REGISTER NOW
  • Southwest Cannabis Caucus – Phoenix, AZ – Thursday, January 21 – REGISTER NOW
  • Nevada Cannabis Caucus – Las Vegas, NV – Tuesday, January 26 – REGISTER NOW
  • So. California Cannabis Caucus – Los Angeles, CA – Tuesday, January 26 – REGISTER NOW
  • No. California Cannabis Caucus – San Francisco, CA – Thursday, January 28 – REGISTER NOW
  • Washington Cannabis Caucus – Seattle, WA – Thursday, January 28 – REGISTER NOW

As NCIA heads into our sixth year of operation, we’re committed to growing and evolving our work to provide increased value to our members and reflect our unique position with the industry. The Quarterly Cannabis Caucuses have been designed to provide the quality and consistent programming you’ve come to expect from NCIA events, while also preparing you and your business to contribute to our legislative efforts on the national level.

You and your team will leave each Cannabis Caucus equipped with the tools to affect positive change on cannabis issues while making meaningful connections with vested industry players. Each Caucus will be free of charge for current NCIA members and include an in-depth federal policy update from senior NCIA staff or staff from a district congressional office, a comprehensive state and local policy update from a local elected official or a member of NCIA, an informational packet filled with detailed legislative analysis and recent federal policy developments, and an organizational update so you can keep up to date with what NCIA is doing for you. All of this will be offered as well as the opportunity to network with the leaders in the cannabis industry.

The Caucus also serves as an opportunity for our members to share their ideas and concerns with NCIA, which is committed to serving the industry in the best way possible

As the only national trade association representing cannabis business owners on Capitol Hill, we are your voice within the halls of Congress on a daily basis. We take this responsibility seriously and by holding these quarterly member meetings, we hope you’ll take advantage of this opportunity to make your own voice heard within our ranks as well.

Every day it seems a new event is popping up, vying for your time, money, and focus. We here at NCIA know that our members’ time is one of their most valued assets, so we’ve created this event series to pack maximum information, value, and member benefit into a regular quarterly meet-up.

Start 2016 off right! Register yourself and your colleagues for an upcoming Quarterly Cannabis Caucus near you today!

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Do you have questions regarding the upcoming Quarterly Cannabis Caucus in your area or others across the country? Reach out to events@thecannabisindustry.org any time with your questions, comments, or concerns.

Interested in sponsoring one or a series of events in a particular region throughout the year in order to gain valuable exposure for your company to our nationwide network of established business owners? Please contact Brian Gilbert at brian@thecannabisindustry.org for more information on series rates and associated discounts for packages including NCIA’s Cannabis Business Summit 2016, taking place in Oakland, CA, June 20-22.

Video Newsletter: Why NCIA’s Cannabis Business Summit is 2016’s Can’t-Miss Event

NCIA’s 3rd annual Cannabis Business Summit is 2016’s can’t-miss event for cannabis industry professionals. But don’t take our word for it! Hear some of the industry’s most successful businesses – including Funksac, The Capsule Consulting Group, Harborside Health Center, Medicine Man, Cannabis Trainers, and more – explain why the Cannabis Business Summit is at the top of their event list.

 

Then purchase your Members-Only Early Bird tickets by December 18 to save $380 off the regular price!
Not yet an NCIA member? Add a one-year membership to your ticket purchase to get the early bird discount AND $50 off your member dues!

Register today and we’ll see you in Oakland, June 20-22, 2016!

expodec18

 

Timeline: 2015 Legislative Year in Review

by Michelle Rutter, Government Relations Coordinator

As we look forward to 2016, there’s much on the horizon for the cannabis industry. NCIA remains dedicated in its effort to pass banking and tax legislation through Congress that would provide immediate relief to cannabis-related businesses all over the country.

In addition to the federal advocacy that NCIA engages in every day, there will be at least five states seeking to legalize and regulate adult-use cannabis via the ballot initiative process: Arizona, California, Maine, Massachusetts, and Nevada. It’s also likely that Florida will have another ballot initiative relating to medical cannabis, and it’s possible that other states will move forward with cannabis reform through ballot initiatives or legislative processes. What happens over the next twelve months will be crucial in shaping the future of the legitimate and responsible cannabis industry.

While 2015 was a milestone year for cannabis reform, that same momentum will be necessary in order to continue moving the conversation forward with Congress in Washington, D.C. The Rohrabacher-Farr medical cannabis amendment earned more that 60 Republicans votes. For the first time ever, there are multiple pro-cannabis bills that have been introduced in the U.S. Senate. Continued progress is vital in garnering more national support for cannabis reform, so make sure your interests are heard through national advocacy, education, and community with NCIA.

The timeline below lays out some of the highlights from a busy year in cannabis industry advocacy. We look forward to more exciting milestones with your help in 2016!

*Click on the “Full Screen” button (with the four arrows) at the bottom of the image to expand its size. 

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