Committee Blog: Announcing Winners of NCIA’s State Regulatory Committee 2024 CannaStar Awards
National Cannabis Industry Association’s State Regulation Committee announces 2024 award winners for cannabis regulatory and program rollout success in 8 states
State-level cannabis regulations are a moving target; or rather, 50 moving targets. Despite nationwide movement in nearly every US state towards a regulated, adult-use market, each state has approached cannabis sales with their own unique flair.
Although it has been fun to watch each state’s program mature under their own particular point of view, as we move forward into 2025 our committee wants to call attention to some of the states we feel are getting it right.
The National Cannabis Industry Association State Regulatory Committee (NCIA’s SRC) hopes that by highlighting the successes (some of them unlikely) in individual states, we can inspire states to come together to share best practices, work towards eliminating redundancies for multistate operators, and create a streamlined framework that allows for greater access to the market for both would-be operators and consumers.
Without further ado, here are the National Cannabis Industry Association State Regulatory Committee’s CannaStars for 2024!
Best Social Equity Program: Illinois
Through the Illinois R3 Program (Restore, Reinvest, Renew), 25% of Illinois cannabis tax revenue is reinvested into communities disproportionately impacted by the War on Drugs, funding initiatives like job training, reentry services, and legal aid. Since launching, this has amounted to $244M in marijuana-funded revenue grants to community organizations that address disinvestment and excessive incarceration in Illinois.
Illinois also prioritizes social equity applicants for licensing by offering additional points on applications, reduced fees, and conditional licenses for roles such as craft growers and transporters. Further, the Cannabis Business Development Fund provides low-interest loans and grants to social equity applicants, helping reduce financial barriers to starting a cannabis business.
Like every state, Illinois continues to navigate the complexities of implementing a fair social equity program. However, the state has also backed up their commitment to restorative justice with criminal record reform. They have identified more than 770,000 records of “minor cannabis offenses” that may be eligible for expungement.
Currently, of the 25 jurisdictions with legal adult-use cannabis programs, 18 have an active social equity program. NCIA’s SRC believes that Illinois leads the nation with a model for social equity within cannabis that truly prioritizes a fair, restorative model.
Best Hemp Regulation: Kentucky
Kentucky’s hemp program stands out as a model of safety, transparency, and innovation due to its prioritization of registration and rigorous testing of hemp products. In Kentucky, all hemp-derived cannabinoids must undergo purity testing and remain compliant with THC limits. Packaging and labeling must also be clear and meet rigorous standards, similar to those in the adult-use markets of other states.
Although enforcing hemp producers and sellers to comply with tight standards has been met with some controversy, NCIA’s SRC believes that Kentucky’s efforts are a good thing and reinforce trust in the marketplace for consumers. California’s outright ban on intoxicating hemp derived products in 2024 has made it clear that lax regulations on hemp put the reputation of the entire cannabis industry at risk.
Beyond safety, Kentucky’s Cabinet for Health and Family Services does an outstanding job fostering collaboration. They engage farmers, processors, and retailers through education and support, and are transparent about regulatory changes and best practices. Their forward-thinking approach has positioned Kentucky as an ideal place for farmers and cultivators throughout the country.
Best Balance of Cannabis and Hemp Regulations: Minnesota
When Minnesota voted to legalize adult-use cannabis in 2023, the state already had a thriving hemp-derived THC product market. Instead of bulldozing the existing hemp market, Minnesota has instead worked to bridge the gap and create a cohesive framework that supports existing businesses, innovation, while also prioritizing public safety and further economic growth.
One of Minnesota’s key strengths is its integrated approach to regulation: hemp and adult-use cannabis are regulated centrally. This is a substantially different model than many other states, where cannabis and hemp are managed by separate regulatory bodies. By overseeing hemp-derived THC products and cannabis under a unified system, the state avoids market confusion and ensures consistent quality standards.
By carefully integrating cannabis and hemp regulation, Minnesota has positioned itself as a model for other states. NCIA’s SRC believes that the Minnesota model – a two-tiered system where lower THC products can be manufactured and sold more readily while higher concentrates of THC are sold through a traditional adult-use framework – merits consideration nationally as a way to increase access, safety, and roll-out adult-use without disrupting existing businesses.
Best Legislator: New Mexico State Senator Katy Duhigg
Elected in 2021, Senator Katy Duhigg (D) represents Albuquerque Senate District 10. Duhigg is the former Albuquerque City Clerk, with a background in election and consumer protection. As a State Senator, she brings extensive cannabis knowledge to her role, and has been critical in allowing New Mexico to emerge as an unlikely success story in adult-use cannabis.
Senator Duhigg serves as Chair of the Senate Rules Committee, and as Vice Chair of the Senate Judiciary Committee, where cannabis-related legislation enjoys the most rigorous discussion. Her commitment to the cannabis industry was witnessed during her very first legislative session, wherein the Cannabis Regulation Act was passed, legalizing cannabis for adult use in New Mexico.
The Cannabis Regulation Act was signed by Governor Lujan Grisham in June, 2021 and New Mexico was able to roll out their program quickly and effectively. Less than a year later, on April 1, 2022, New Mexico was open for business. There are now 3,071 active license holders (as of December 4, 2024).
Since the passage of the CRA, Sen. Duhigg has been absolutely integral, leading the charge in the Senate to improve the enabling legislation and to ensure New Mexico’s cannabis industry continues to mature, with strong equity protections that include uplifting the existing medical operators who have been serving the state since the beginning of New Mexico’s medical cannabis program in the 1970s.
Best Age Verification Guidelines: Nevada
Cannabis is frequently subject to “think of the children” style regulations and moral panic, but states often miss the mark when actually trying to put guidelines in place that protect minors and keep products out of their hands.
Nevada is still the first, and only, state to require any type of ID authentication to detect fake and suspicious IDs, and the Nevada Cannabis Control Board remains the most well-educated regulatory body on the subject of the forensic document analysis required to actually separate adult users from minors presenting false identification.
Furthermore, in March 2023, Nevada Assemblyman Brian Hibbets introduced AB342 – special interest legislation – that would have required onerous, and expensive third party checks as part of the Nevada dispensary age verification process. The Nevada State Legislature smartly shot down this amendment, which was vendor-specific language desperately seeking a problem that doesn’t exist in a state where every dispensary is doing the absolute most to detect fake IDs and keep minors out.
As of May 2024, Nevada is also the only state to include any guidelines for age verification of cannabis purchase via eCommerce, or age verification for cannabis delivery. This makes Nevada the top state in the nation for preventing underage sales, but with a common-sense approach that doesn’t try to add unnecessary burdens to their cannabis operators.
Best Challenge to the DEA: Georgia
In 2023, Georgia took the bold step of deploying their medical program directly into independent pharmacies across the state. With a limited product mix and a nascent patient base, this was an innovative way to jump-start a program and avoid high capital costs. The program was on track to get 90% of the medical cannabis patient base accessible within a 30-minute drive within 6 months of launch.
Unfortunately, in November 2023, the DEA sent an ominous letter to ice the exciting new rollout, reminding pharmacists that cannabis is still a Schedule I substance. However, instead of capitulating to the threat, the industry persisted and the state stood by to support the program with 52 pharmacies remaining active license holders. NCIA’s SRC celebrates Georgia’s commitment to medical cannabis patients and increasing access, in spite of federal threats.
Best Tax Rate Reform: Washington State
The culmination of a 5-year effort finally succeeded in removing all state taxes from Washington Department of Health-compliant products when purchased by registered medical patients. This matches the standards for pharmaceutical purchases in nearly every US state, where prescribed medications are non-taxable. Washington now joins 10 other states who do not tax medical cannabis purchases.
Since 2016 The Cannabis Alliance, Washington’s largest cannabis trade organization, has been advocating for the reduction or removal of the 37.5% state excise tax on medical cannabis products. Now, as of June 6, 2024, registered medical patients can purchase prescribed cannabis tax-free, a nearly 50% reduction in total cost to medical consumers. The state also introduced new higher testing standards for medical products, a patient registry, and a medical cannabis consultant license provided to budtenders.
Although adult-use cannabis in Washington still remains subject to a 37% tax, and the NCIA SRC acknowledges that taxes are needed to continuously fund state cannabis programs, we want to highlight Washington as the first state in the nation to treat medical cannabis as a medical necessity under the tax code, easing consumer financial burdens, and helping better position medical cannabis as a legitimate and needed treatment for many conditions.
Best Employee Protections: Nevada
Nevada leads the way with some of the strongest employee protections in the United States to ensure legal users of medical or adult-use cannabis do not face workplace discrimination. In 2020, Nevada was the first state to prohibit most employers from rejecting job applicants based on pre-employment marijuana tests. This landmark legislation, codified under Assembly Bill 132, effectively protects job seekers who legally consume cannabis, while still allowing employers to maintain workplace safety standards for positions in safety, aviation, and other high risk roles. Additionally, Nevada law protects employees from penalties for lawful off-duty cannabis use. This includes the stipulation that employers cannot take adverse actions against employees for testing positive for cannabis unless there is a direct safety concern or violation of company policies.
For medical cannabis users, Nevada law goes a step further by requiring employers to attempt reasonable accommodations for qualifying medical conditions. This requirement, enacted under Assembly Bill 453, emphasizes that individuals using medical cannabis for legitimate health concerns are entitled to workplace protections, similar to those afforded to employees using other prescription medications.
Notably, the Nevada Supreme Court has affirmed employees’ right to sue for violations of these protections, cementing the legal precedent that employees have the right to challenge discriminatory actions based on cannabis use. The court’s decisions have reinforced Nevada’s position as a model for other states considering similar workplace protections for cannabis consumers. These legal safeguards represent a forward-thinking approach to balancing employee rights with workplace safety, and have set a gold standard for workplace cannabis policies across the United States.
Best Regulatory Addition for Market Diversification: Massachusetts
Better late than never, the Massachusetts Cannabis Control Commission recently drafted new social consumption regulations and has moved to the formal public comment stage. As mature markets struggle with oversupply and overlicensing the rate of entity failures and state court receiverships (both voluntary and involuntary) of licensees are steadily on the rise. Massachusetts is among the first states to proactively offer a diversification opportunity for their cannabis program in the form of consumption lounges.
The draft regulations contemplate three different varieties of social consumption licenses – supplemental, hospitality and event organizer – and would restrict social consumption licenses to only Social Equity Businesses, Social Equity Program Participants, Certified Economic Empowerment Priority Applicants, Microbusinesses, and Craft Marijuana Cooperatives for the first 5 years after program launch. Supplemental licenses would be available to certain existing marijuana establishments and allow for on-site consumption within or attached to an existing facility. Hospitality licenses would permit non-CCC licensed entities to host on-site consumption events in partnership with certain existing marijuana establishments. Finally, event organizer licenses would permit certain existing marijuana establishments to host temporary consumption events.
9 states have already active consumption lounge licensing, and Massachusetts has been considering a social consumption pilot program since 2019, but the NCIA SRC wants to highlight Massachusetts for a considered approach focused on increasing revenue streams for smaller operators and social equity license holders.
Lifetime Achievement Award for Innovation: California
California has consistently led the nation when it comes to innovative and inclusive cannabis policy, going back to their first legalization ballot initiative in 1972. They were the first state to legalize medical cannabis in 1996, and today California still remains a leader in the cannabis industry, driven by its vast market, progressive regulations, and culture of experimentation.
A key milestone in this evolution was the 2024 California State Fair, which became the first state-sanctioned fair to integrate cannabis sales and consumption on-site, embracing cannabis culture into the mainstream. The state is also pioneering new business models, with cities like West Hollywood and San Francisco operating cannabis lounges that combine cannabis with art, food, and entertainment, reshaping consumption and creating new opportunities and economic growth in hospitality and entertainment.
California’s commitment to research further enhances its role as a leader, with the University of California system partnering with private enterprises to explore cannabis’s medical potential, including at the UC San Diego Center for Medicinal Cannabis Research. Together, California’s groundbreaking events and innovative business models position it as the epicenter of cannabis innovation.
NCIA’s SRC expects that California will continue to lead the way with an innovative and focused approach to growing its legal cannabis industry.
Conclusion & Congratulations
Congratulations to the 2024 National Cannabis Industry Association State Regulatory Committee’s CannaStars winners! The committee has enjoyed supporting the progress of medical and adult-use cannabis programs across the US, and can’t wait to see what new developments every state has in store for 2025.
NCIA’s Statement on Interlocutory Appeal in Federal Cannabis Rescheduling Hearing
The historic hearing scheduled to examine how marijuana is classified under federal law that could have potentially moved it into Schedule III of the Controlled Substances Act has been postponed indefinitely.
The DEA’s Chief Administrative Law Judge (ALJ) Mulrooney recently granted a request for leave to file an interlocutory appeal, resulting in the cancellation of the merit-based hearing and effectively pausing the proceedings for at least three months. With a new administration being sworn in imminently and a new DEA Administrator who has yet to be selected, future action remains uncertain.
The movants (Village Farms International, Hemp for Victory, Office of the Cannabis Ombudsman of Connecticut, Ellen Brown [Massachusetts Cannabis Advisory Board], and My Doc App) behind the request were Designated Participants (DPs) without standing who purport to be pro-rescheduling, despite the fact that their motion will require operators to continue paying the exorbitant tax rates that 280E imposes and has galvanized prohibitionists. The interlocutory appeal was filed in an attempt to remove the DEA as the proponent of the rescheduling rule due to evidence the agency was biased against cannabis and had engaged in communications with prohibitionist group Project SAM and other opponents outside of the legal process.
While we agree that the DEA was unsurprisingly not free from bias, NCIA did not subscribe to this strategy because removing the DEA from its own administrative court was never a viable option and would have only resulted in delay or perhaps the end of the rescheduling process.
As the only pro-cannabis party granted standing in these proceedings, we are very disappointed in this unfortunate turn of events initiated by parties without legal standing.
“We believe this to be an ill-conceived strategy that benefits no one but the prohibitionists seeking to hinder reform,” said NCIA CEO & Co-founder Aaron Smith. “Our members need rescheduling and tax relief now, and we remain committed to advancing these reforms through whatever means available in the weeks and months ahead.”
This development underscores the importance of NCIA’s ongoing work advocating for the cannabis industry in Congress and the new administration. It will be up to the next DEA Administrator to determine the future of cannabis scheduling and NCIA will be working hard to ensure getting the process back on track is a priority.
Our pro bono legal teams at Greenbridge Corporate Counsel and Fox Rothschild are exploring every avenue possible to get the proceedings back on track and ensure meaningful progress continues.
Be Part of a Movement, Not a Moment: Highlights from NCIA’s Fall Stakeholder Summits
This fall, the National Cannabis Industry Association (NCIA) held four Stakeholder Summits across the United States, gathering cannabis industry operators, regulators, investors, and advocates to tackle the unique regulatory, operational, and strategic challenges facing cannabis businesses today. Held in Michigan, New York, Ohio, and Southern California, these Summits offered actionable insights into the evolving landscape of cannabis regulation and taxation, fostering a spirit of collaboration and movement-building in support of a thriving, equitable industry.
Michigan Stakeholder Summit: Regulatory Adaptation and Collaborative Solutions
The Michigan Stakeholder Summit brought to light the latest regulatory shifts impacting cannabis operators in the state. From changes in the Hemp Farm Bill to Michigan’s approach to intoxicating hemp sales, the panel on “Operator Insights and Regulatory Perspectives” shed light on pressing issues. Brian Hanna, Executive Director of the Cannabis Regulatory Agency, addressed upcoming regulatory changes and discussed the need for balanced enforcement to protect Michigan’s legal market. Discussions also covered navigating compliance with agencies like the Department of Environment, Great Lakes, and Energy (EGLE) and MIOSHA, while maintaining operational efficiency.
One core theme emerged from panelists such as Rebecca Collett of Calyxeum and Allison Ireton of Bloom City Club: collaboration is essential. As the Michigan cannabis market faces evolving dynamics, including the rapid issuance of new licenses and pressures on medical caregivers, the need for a transparent dialogue between regulators and industry stakeholders remains critical. Attendees left with actionable strategies for adapting to compliance requirements, maintaining business viability, and ensuring consumer protection.
New York Stakeholder Summit: A Regulatory Landscape in Transition
In New York, the Stakeholder Summit focused on how operators can succeed in a rapidly maturing market. Led by John Kagia from the Office of Cannabis Management (OCM) and industry veterans like Jeffrey Schultz of Foley Hoag LLP, the “Operator Insights and Regulatory Perspectives” panel delved into the complexities of New York’s regulatory landscape. The session addressed social equity provisions, compliance hurdles, and strategies for growth in a highly regulated environment.
Key questions included navigating the intake process for new operators and the impact of recent enforcement actions on the illicit market. Kate Hruby of KJH Strategy emphasized the need for well-defined compliance guidelines to reduce ambiguity, while Marcella Osello of DOPE CFO Certified Advisors shared insights on the financial challenges facing small businesses in New York. The panel underscored the importance of partnerships between operators and policymakers, leaving attendees with insights on building a resilient business within a market in flux.
Ohio Stakeholder Summit: Legislative Updates and Strategic Business Growth
The Ohio Summit explored the convergence of legislation, legal complexities, and operational strategy essential for growth in Ohio’s cannabis market. Ohio State Representative Juanita Brent (D – District 22) shared updates on recent legislative actions affecting cannabis operators and emphasized the need for proactive policy advocacy, particularly as the legislative landscape shifts with changes in state leadership.
Legal experts like John Oberle of Ice Miller LLP and Helen Mac Murray of Mac Murray & Shuster LLP highlighted the nuances of Ohio’s regulatory requirements, with a focus on compliance around testing, product dosing, and advertising restrictions. Emillie Kelleher of BeneLeaves provided practical strategies for scaling a cannabis business within these parameters, underscoring the importance of understanding regulatory demands while fostering consumer trust. Ohio’s legislative season is critical for the cannabis industry, and the call to action was clear: advocate, educate, and ensure that the industry’s voice is heard as Ohio’s regulations continue to evolve.
Southern California Stakeholder Summit: Advancing Equity and Policy Innovation
In Los Angeles, top regulators, operators, and industry advocates gathered to explore the unique challenges and growth opportunities within the region’s cannabis market. Michelle Garakian, Executive Director of the Los Angeles Dept. of Cannabis Regulation, and Laura Magallanes, Deputy Chief of the Office of Cannabis Management for Los Angeles County, shared insights on compliance, while moderator Yvette McDowell guided a discussion on strengthening industry-regulator collaboration. Jazmin Aguiar, Emerging Markets Consultant for Council Member Imelda Padilla, contributed her expertise on market expansion and policy development, underscoring the importance of community engagement in regulatory planning.
Equity operator Kika Keith, founder of Gorilla RX Wellness, advocated for streamlined processes and resources to support equity businesses, while Jerred Kiloh, President of the United Cannabis Business Association, called for policy reform, including excise tax reduction, alongside stronger enforcement against illicit operators. Panelists encouraged attendees to engage in advocacy and build stronger partnerships with local agencies, presenting a path forward for a compliant, thriving, and equitable cannabis industry in Southern California.
Schedule III & Section 280E: Navigating the Future of Cannabis Taxation
Across all four Summits, the “Schedule III & Section 280E: Navigating the Future of Cannabis Taxation” panel served as a pivotal discussion into how the potential rescheduling of cannabis could reshape financial and regulatory landscapes. Featuring a diverse lineup of industry experts and regional operators from across the cannabis supply chain, the discussion highlighted the anticipated end of 280E limitations and its impact on tax planning, capital access, and broader market opportunities.
Each panel featured unique perspectives: in Michigan, Thomas Lavigne, Jay Snipes and Scott Greiper explored strategic financial planning for capital investment in a post-280E landscape and how operators could prepare for new deductible expenses. In New York, Al Foreman and Marcella Osello shared expertise on how rescheduling could influence capital markets and growth for smaller operators. In Ohio, Thomas Haren and Ashley Mosby emphasized proactive compliance and planning for tax relief, while in Southern California, Neil Rosenfield, Henry Wykowski, and Eric Kaufmann discussed the regulatory adjustments needed to fully benefit from Schedule III status, with a focus on operational scalability and tax strategy. Panelists across all locations encouraged operators to adopt forward-thinking approaches, aligning financial practices with both current and evolving regulatory environments.
Honoring Our Speakers: Driving Conversations That Shape the Cannabis Industry
The success of the Fall 2024 Stakeholder Summits would not have been possible without the expertise and passion of our distinguished speakers. These industry leaders, policymakers, and advocates generously shared their knowledge, providing actionable insights and fostering critical dialogue on the challenges and opportunities facing cannabis businesses today. We extend our heartfelt gratitude to each of them for their invaluable contributions.
Schedule III & Section 280E: Navigating the Future of Cannabis Taxation
Thank you to each of these exceptional speakers for advancing the conversations that define the future of our industry. Their insights and leadership continue to inspire progress and innovation across the cannabis landscape.
Thank You to Our Sponsors and Partners: A Driving Force Behind the Fall 2024 Stakeholder Summits
Platinum Sponsors
FundCanna and Bavis Fabacraft led the way as our Platinum Sponsors, opening each Summit with impactful contributions that set the stage for dynamic discussions and actionable takeaways. Their support was instrumental in creating events that inspired collaboration and innovation across all four Summits.
Together, these sponsors and partners exemplify the power of collaboration and the impact of collective action. Their support not only elevated the Fall 2024 Stakeholder Summits but also strengthened our shared mission to create a sustainable and equitable future for the cannabis industry.
Thank you for being an essential part of this movement and for helping us continue to inspire, advocate, and lead as we shape the future of cannabis.
Building a Movement for Change
The NCIA’s Stakeholder Summits brought together a diverse array of voices committed to the growth and integrity of the cannabis industry. From navigating complex compliance landscapes to advocating for inclusive regulatory frameworks, the message across each session was clear: this is a movement, not just a moment. Industry stakeholders must collaborate, advocate, and actively participate in shaping the future of cannabis in the United States.
For cannabis operators, now is the time to align with the NCIA’s mission, engage in industry advocacy, and contribute to a movement that transcends individual business interests. Together, we can forge a resilient industry that not only meets today’s challenges but also paves the way for a sustainable and equitable future.
The conversation continues in 2025 — NCIA will hold follow-up Stakeholder Summits in Sacramento and Denver in Q1 and Q2, culminating with our first-ever National Stakeholder Summit in May 2025. This event will coincide with our 13th Annual Cannabis Industry Lobby Days in Washington, D.C., where we’ll unite industry leaders to make an impact on the national stage.
Join the movement — Drive meaningful change and help define the cannabis industry for generations to come by becoming a member of NCIA. Learn more about membership here.
NCIA Only Pro-Cannabis Organization Granted Standing in DEA Rescheduling Proceedings
On November 19, the DEA’s Chief Administrative Law Judge John Mulrooney issued a ruling granting the National Cannabis Industry Association (NCIA) full standing to participate in the upcoming hearings on the agency’s proposed rule to reclassify marijuana from Schedule I to III in the federal Controlled Substances Act.
NCIA was the only party granted standing that supports rescheduling, while all 12 parties in opposition to the proposed change were given the nod to move forward. We are proud to be able to represent the cannabis industry in these important proceedings, which could yield a groundbreaking outcome for the legal cannabis industry should our efforts prove successful.
The hearing will officially commence on January 21, 2025 and conclude during the first week of March. The Administrative Law Judge (ALJ) presiding over the proceedings has stipulated that each Designated Participant (DP) may present one witness that can testify for 90 minutes maximum. According to the schedule outlined by the ALJ, NCIA’s witness will testify on January 29.
NCIA unequivocally supports descheduling marijuana entirely, however, we recognize that the federal government is currently only considering rescheduling. As such, our organization is in favor of a move to Schedule III, but filed a “limited objection” to the proposed rule that focuses mainly on how the DEA could use this opportunity to make currently unscheduled cannabinoids Schedule I (or III).
Quotes from the Judge on NCIA’s limited objection: “cleverly put”, called it “a fine bit of lawyering“, and opined that it was “good to read something so thoughtful“. Our organization would like to highlight the work of policy co-chairs Khurshid Khoja and Michael Cooper, as well as the team at Fox Rothschild for spearheading our crafty argument!
These hearings are the final phase of a process to review and reclassify cannabis that was set in motion by President Biden in October 2022. NCIA has advocated for the legal cannabis industry throughout this process, strongly supporting the move to Schedule III as a critical first step toward ultimately making cannabis legal at the federal level.
Moving cannabis to Schedule III would not only be the first federal acknowledgment of the medicinal value of cannabis, it would eliminate the unjust burden of Tax Code Section 280E on the cannabis industry, allowing all businesses in the sector to take the ordinary business deductions afforded to other industries.
Currently, plant-touching cannabis businesses are collectively overpaying the IRS more than $2 billion annually in excess taxes. This stifles profitability and drives up costs across the entire industry—for licensees and ancillary businesses alike. So there is a lot at stake in the upcoming hearings and NCIA is up to the task of representing the industry and bringing home a big win for regulated cannabis.
I invite anyone interested in a favorable outcome to join our efforts by becoming a member of NCIA now so that we have the resources we need to make the best possible case for the cannabis industry in these proceedings. There are also opportunities for business leaders to pull up a seat at the table and provide input to NCIA during this important process, set up a call with someone on our team to learn more.
The Power of the Ballot: Cannabis Reform Takes Center Stage in 2024
Ballot initiatives are as OG as it gets: nearly thirty years ago in 1996, California became the first state to legalize medical marijuana via Proposition 215, also known as the Compassionate Use Act. This provision exempted certain patients and their primary caregivers from criminal liability under state law for the possession and cultivation of cannabis for medicinal use- and as they say, the rest is history!
But with election day just around the corner, it’s important that we remember our roots (pun intended) and remind our friends in Arkansas, Florida, Nebraska, North Dakota, South Dakota, and Oregon that cannabis is on the ballot.
Arkansas
If you live in Arkansas you may see marijuana on your ballot, but unfortunately your vote on the measure simply won’t be counted!
The Arkansas Medical Marijuana Expansion Initiative will appear on the ballot in Arkansas as an initiated constitutional amendment, however, in late October, Secretary of State John Thurston announced that votes on the measure would not be counted. Thurston determined that proponents submitted a total of 88,040 signatures, falling short of the 90,704 signatures required. The measure was provisionally placed on the ballot because signature verification was ongoing amid the deadline for the final statewide ballot to be printed but the Arkansas Supreme Court later ruled that although the sponsors submitted enough valid signatures to qualify for the ballot, the amendment’s ballot language was misleading and that votes on the measure would not be counted.
Florida
Voters in the Sunshine State will have the opportunity to cast their vote on legalizing adult use cannabis, but with a catch: in order to pass, proposed amendments need to garner at least 60% of the vote in order to be added to the Florida Constitution.
Amendment 3 has gotten substantial media coverage: Florida Governor Ron DeSantis has been an outspoken opponent of the measure, while former President Trump has recently stated that “As a Floridian, I will be voting YES on Amendment 3 this November”.
The outcome remains uncertain, though: A recent Emerson College Polling/The Hill survey found that support for Amendment 3 is at 60 percent, while 34 percent are opposed and 6 percent remain undecided.
Nebraska
Voters in Nebraska will see two medical marijuana measures on their ballots in November, but getting there wasn’t easy: there’s been a local lawsuit and a statewide investigation into whether enough of the signatures were valid.
Both initiatives would define cannabis as all parts of the plant of the genus cannabis, including marijuana, hashish and concentrated cannabis, but not hemp as defined in state law. One effort, the Nebraska Medical Cannabis Regulation Act, would legalize possessing, manufacturing, distributing, delivering and dispensing cannabis for medical purposes and would create the Nebraska Medical Cannabis Commission to oversee the law.
The other measure, the Nebraska Medical Cannabis Patient Protection Act, would set an allowable amount of medical cannabis at five ounces; would exempt patients and caregivers from using or assisting someone else in using the cannabis; and would require a written recommendation from a health care practitioner, as well as a legal guardian or parent in the case of minors, prior to prescription.
Advocates in Nebraska tried (and failed) to get medical marijuana on the ballot in 2022 and 2023- hopefully third time’s the charm!
North Dakota
Voters in North Dakota will see Initiated Measure 5, aka the Legalization and Regulation of Cannabis, on their ballots. North Dakota voters approved medical marijuana in 2016 but rejected recreational initiatives in 2018 and 2022.
The 20-page statutory measure would legalize recreational marijuana for people 21 and older to use at their homes and, if permitted, on others’ private property. The measure also outlines numerous production and processing regulations, prohibited uses — such as in public or in vehicles — and would allow for home grow.
According to a September survey, roughly 45% of registered voters in North Dakota support Initiated Measure 5, while 40% oppose and 15% are undecided.
South Dakota
In South Dakota, voters will see Initiated Measure 29 on the ballot. Measure 29 would legalize cannabis use, possession, distribution and home grows for individuals 21 years and older and allow for limited home grow. It would restrict where individuals could possess or consume cannabis and would also allow employers to restrict an employee’s use of cannabis. To satisfy the state’s single-subject rule, the measure does not establish a commercial marketplace for licensed cultivation or dispensary sales.
This is South Dakota’s third adult-use cannabis measure to appear on the statewide ballot.
Oregon
Measure 119, known as the Unionization of Cannabis Workers Initiative, is on the ballot in Oregon as an initiated state statute. Measure 119 would require cannabis retailers and processors to submit to the Oregon Liquor and Cannabis Commission with its application or renewal of license a signed labor peace agreement between the cannabis retailer or processor and a labor organization actively engaged in or attempting to represent the retailer’s or processor’s employees.
Currently, California, Connecticut, New Jersey, New York, and Virginia have similar requirements for licensed cannabis businesses.
All of these measures will shape the narrative around cannabis reform, so whether you live in a state with a marijuana-related initiative or not- make sure you have a plan to get to the ballot box and let your voice be heard!
NCIA Committees: Now Accepting Applications For The 2025 Term!
If you want to take your industry involvement to the next level, now is the time to get join one of NCIA’s 12 member-driven committees! NCIA is excited to announce that from now until December 11, we are accepting applications for the 2025 term!
All NCIA annual members in good standing are invited to apply for an NCIA committee seat for the 2025 committee term. Blooming & Evergreen Members receive guaranteed committee placement.
NCIA Committees enable NCIA members to engage their vast and varied areas of expertise and passion to:
Effect change and influence public opinion and policy;
Demonstrate thought leadership;
Expand professional and personal network; and
Develop best practices and guidelines to shape the future of our industry.
NCIA Accepting Applications For 2025-2027 Board of Directors Term
NCIA is now accepting applications for eligible candidates to apply for the board through December 20, 2024.
The National Cannabis Industry Association is a nonprofit organization run for and by its membership, so we hope you’ll consider this opportunity to apply for a seat on the NCIA Board.
Serving on NCIA’s Board of Directors is no small task. Board members are responsible for overseeing the strategic direction of the largest and most influential cannabis industry organization in the country. Board Members are also responsible for building membership, fundraising, and ensuring that NCIA continues to be the strongest force advocating for the fair and equal treatment of the industry on Capitol Hill.
Current NCIA members in good standing are eligible to apply for a seat on the board. NCIA members who are interested and qualified to serve on our board are encouraged to submit an application for review by our nominating committee before the December 11 deadline.
Candidates may apply directly for a board position during the open application process. The application form asks for information about the candidate’s professional background, unique talents, skills, and viewpoints, and ability to contribute or raise financial resources for NCIA. Candidates must be fiduciaries of a NCIA member-business or be designated by a company fiduciary to serve on our board.
Who Qualifies To Run For A Board Position?
To be considered for a seat on the board, a candidate must be a fiduciary (e.g. owner, president, CEO) of a current member business at any level of membership or must be a representative of the business that has been appointed to serve by a fiduciary. Candidates must submit an application online by 11:59 p.m. on December 20.
What Are The Requirements For An NCIA Board Member?
Board members serve two-year terms and are responsible for overseeing the association’s overall strategy and budget, assisting in the development of strategic relationships, and serving as ambassadors of NCIA, which represents hundreds of member businesses. In general, the NCIA board meets in person twice and conducts 3-4 additional video conferences per year.
How Are The Board Positions Selected?
Once the application period closes, NCIA’s Nominations Committee will convene to carefully review and score all applications. The committee will ultimately select a slate of nominees to fill six (6) available board seats that are best suited to bring additional talent, resources, and diversity to our growing organization, based on their qualifications.
Our Nominating Committee will comprise the chairs of our 14 member committees as well as a select number of current board members whose terms are not expiring this year. Once the Nominating Committee selects the slate of six members will be notified at the end of this year.
Cannabis, once relegated to the shadows of society, is making a significant push into mainstream America. However, the journey from prohibition to acceptance is faced with many challenges, particularly in the retail world. The stigma surrounding cannabis stems from historical, legal, social, and cultural factors, and lack of education, plays a role in shaping the stigma. In this blog, we’ll explore some of the roots of the stigma on cannabis and how the landscape is gradually changing.
The Historical Backdrop
The roots of cannabis stigma are deeply embedded in history. In the early 20th century, cannabis was criminalized in many parts of the world. The United States’ War on Drugs, which began in the 1970s, heavily penalized cannabis use, linking it to criminal behavior and societal decay. Media reports of cannabis users as lazy, unmotivated, or criminals; these negative stereotypes are what many believe to be true.
However, alongside this negative portrayal, there exists a rich history of cannabis as a medicinal plant. For centuries, cannabis has been used to treat a variety of medical issues. Ancient cultures across Asia, the Middle East, and Africa utilized cannabis for its therapeutic properties, including pain relief and anti-inflammatory benefits.
In more recent times, cannabis has shown promise in helping cancer patients manage symptoms such as nausea, pain, and loss of appetite. Additionally, it has been found to fight inflammation, which is beneficial in treating conditions like arthritis and multiple sclerosis. This positive history of cannabis as a healing plant is often overshadowed by its criminalization and the stigma attached to its recreational use.
Legal and Regulatory Hurdles
One of the most significant barriers to cannabis acceptance in retail is the complex legal landscape. In the United States, for instance, cannabis remains illegal at the federal level, despite being legal in several different states. This legal ambiguity creates uncertainty and fear among businesses, banks, customers as well as B2B consumers.
Moreover, the reluctance of banks and financial institutions to work with cannabis-related businesses due to federal regulations results in limited access to financial services and funding. This financial exclusion makes it difficult for cannabis businesses to operate and expand, perpetuating the stigma. It also makes it challenging for funding purposes for these businesses to continue to operate efficiently.
Social and Cultural Challenges
Public perception plays a crucial role in the acceptance of cannabis. Despite increasing acceptance, many still view cannabis use negatively and as a Schedule 1 drug, influenced by concerns about health impacts, addiction, and moral values. Workplace policies that maintain strict no-drug stances, regardless of legal status, also contribute to this negative perception. Enhancing education on cannabis can help mitigate this stigma within our culture, which in turn will aid in positioning the cannabis industry as a credible sector in the eyes of consumers, banks, and other business sources.
Retail Industry-Specific Issues
In addition, mainstream retailers are often hesitant to carry cannabis products due to fear of backlash from conservative customers or communities, which limits the visibility and availability of these products in the broader spectrum.
Furthermore, stringent marketing and advertising regulations restrict cannabis businesses from effectively reaching new customers and normalizing their products. Social Media advertising is prohibited as well as certain television channels.
Conclusion
Resolving the challenges surrounding the stigma of cannabis in the retail world requires a multifaceted approach. Firstly, education plays a pivotal role: increasing public awareness about the medicinal benefits of cannabis and dispelling myths through targeted campaigns can shift negative perceptions. Secondly, advocating for legislative reform to align federal and state laws can provide clarity and confidence for businesses to operate effectively. Moreover, fostering open dialogue among stakeholders, including policymakers, industry leaders, and the public, can promote understanding and acceptance. Lastly, mainstream retailers can be encouraged to embrace cannabis products through initiatives that demonstrate responsible consumption and highlight regulatory compliance, thereby normalizing its presence in the retail market. By addressing these aspects comprehensively, we can gradually reduce stigma and integrate cannabis as a legitimate and beneficial sector within the retail market.
NCIA Comments on Federal Marijuana Rescheduling
On behalf of over 500 member-businesses NCIA has submitted extensive public comment to the Department of Justice in support of the proposed rule to reclassify marijuana from Schedule I to Schedule III in the Controlled Substances Act.
We are calling on the DEA reschedule, without delay and to issue guidance to federal agencies to ensure state-based cannabis programs are not disrupted by inappropriate federal enforcement.
Moving cannabis to Schedule III would be a historic step forward and a significant relief for the industry, as the unfair tax burden of 280E would no longer apply to state-legal businesses. However, rescheduling is not the end of the road. As an industry, we must continue to advocate for federal legalization and sensible regulations for marijuana and hemp-derived cannabinoid products.
During the DOJ’s sixty-day public comment period on rescheduling, nearly 40,000 comments were submitted by various agencies, organizations, academics, and concerned citizens. An overwhelming 91% were submitted in favor of moving cannabis to a less restrictive Schedule or making it legal under federal law, according to an analysis of the data conducted by NCIA member and leading market intelligence and consumer trends platform, Headset.
The analysis found that among those supporting a change 56% advocated for complete descheduling of cannabis and 35% supported rescheduling to a less restrictive category.
Make Your Comment Count! A Guide for Industry Advocates
Understanding the Importance of Effective Public Comments on Cannabis Rescheduling Proposals
The cannabis industry is abuzz with anticipation over the rescheduling proposals. From industry groups to advocacy organizations, companies, and activists, discussions on submitting effective public comments are in full swing. This marks a significant moment as the federal government proposes to reclassify cannabis for the first time, moving it from Schedule I to Schedule III. This move acknowledges cannabis’s medical value, a recognition long sought after. Amidst this pivotal moment, it’s crucial to ensure that your public comments on cannabis rescheduling are not only heard but are also meaningful and impactful.
For a comprehensive toolkit to assist in crafting your public comment, visit NCIA’s resource page here.
Tips for Crafting Effective Public Comments on Cannabis Rescheduling Proposals
1. Be Respectful
While it may seem obvious, maintaining respectful language is crucial. Emotions can run high when discussing cannabis regulation, but name-calling or using foul language can undermine your message. Ensure your comments are taken seriously by maintaining a professional tone.
2. Stay on Topic
Focus your comments narrowly on the specific cannabis rescheduling issue at hand. Whether addressing the DEA or local city council, avoid including unrelated grievances. For example, if discussing zoning laws affecting cannabis businesses, refrain from delving into tax issues or home grow regulations. This clarity strengthens your argument and prevents your message from appearing scattered.
3. Clearly State Your Requests
Ensure your asks are explicit and easy to identify. Begin and conclude your letter with a clear statement like, “I am asking you to…”, followed by the action you want. Decision-makers review numerous letters daily, so clarity on your stance and desired action is essential for your public comment on cannabis rescheduling to be counted.
4. Provide Supporting Data and Stories
Back your arguments with relevant data and compelling anecdotes. This enriches your public comment on cannabis rescheduling and provides context for your requests. Ensure your evidence supports your advocacy effectively.
The Importance of Advocacy in Cannabis Rescheduling
Public support has been instrumental in progressing cannabis rescheduling reform. However, societal attitudes towards cannabis are dynamic, and advocacy efforts are crucial in maintaining momentum. Active participation in public processes, done respectfully and productively, is our best defense against potential setbacks in cannabis policy.
Advancing Change: Advocacy Through Effective Public Comments on Cannabis Rescheduling
Crafting effective public comments on cannabis rescheduling is a vital tool in advocating for cannabis rescheduling. By following these tips, you can ensure your voice is heard in the ongoing discussions. Remember to share this guide with fellow advocates to strengthen our collective impact in shaping cannabis rescheduling policy.
As the cannabis industry continues to evolve, so do the discussions around regulations, particularly concerning flavor additives in inhalable cannabis products. This blog post represents the members of NCIA’s State Regulations Committee current reflections on the successes and shortcomings of existing cannabis vape regulations, focusing on flavor limitations, safety considerations, quality specifications, and labeling practices. While technical, this topic has a tremendous impact on cannabis brands and consumer safety.
First, for those who might question the need to add flavors to cannabis vapes, it’s essential to highlight the following points regarding why flavors are added and the benefits they bring:
Restoration
In some cases, such as with cannabis distillates, processing or manufacturing techniques can alter or remove natural cannabis flavors from vape liquids. Adding cannabis flavors back simply returns the final product back to nature’s intended taste profile, providing consumers with a comprehensive vaping experience.
Mimicking Smoking Sensation
For individuals transitioning from traditional smoking to vaping, flavors can mimic the sensations and tastes they are accustomed to, making the switch more enjoyable and satisfying.
Customizing Preferences
Consumers have diverse preferences, and adding flavors allows them to customize their vaping experience based on their personal taste preferences, whether they prefer fruity profiles or classic cannabis flavors. Akin to aromatherapy, consumers may also predict the mood impression they will experience by vaping a particular flavor.
Providing Consistency
Consumers often expect certain flavors in products based on their product familiarity so it is important for brands to be able to deliver a consistent vaping experience wherever their product is sold despite changes that the consumer may otherwise notice due to harvesting variability of the cannabis or limitations on strain availability across borders.
Meeting Market Demands
The vape industry is driven by consumer demand for a wide variety of flavors. Adding flavors allows vape manufacturers to meet market demands and cater to the preferences of different consumer segments. In regions where certain flavors are restricted or banned due to regulation, the legal vape industry is challenged to compete with the illicit market, where flavors would continue to be available. However, these illicit market alternatives may not undergo the same safety and quality standards as legal vape products, potentially posing risks to consumers’ health. By offering a wide range of flavors, the legal vape industry can provide consumers with safer alternatives and help combat the proliferation of potentially unsafe, unregulated products.
Personal taste aside, the dangers of unsafe flavors in unregulated products are real, as was demonstrated in 2019 through cases of EVALI (E-cigarette or Vaping Associated Lung Injury). As detailed in this piece, manufacturers need to follow best practices to protect vaping consumers no matter if they are in regulated cannabis, unregulated cannabis, or the CBD/hemp markets.
Flavor Limitations
Overall, the addition of flavors to cannabis vapes is not just about enhancing taste but also about meeting consumer expectations and improving consumer safety. Flavors create consistency in products and are common across consumer products we already enjoy daily. Consumers are trained to expect flavor variety and consistency in traditional e-cigarettes, and cannabis vapes should be no different.
What’s Working?
We commend states like Oregon for taking a pragmatic approach by allowing a broad range of natural, artificial, and cannabis-specific flavoring ingredients while rightly prohibiting scientifically known inhalation hazards. This approach provides broad room for innovation while protecting the public from valid safety risks.
What’s Not Working?
Conversely, restrictions on flavor ingredients to only natural sources, as seen in states like Nevada, California, and New York, are unnecessarily limiting and not scientifically justified. Further limiting flavoring terpenes to being cannabis or hemp-derived, like in Connecticut, also hinders creativity, imposes higher costs, and potentially pushes consumers towards unregulated alternatives. Likewise, enforcement actions to prevent adolescent access to vapes should be prioritized over regulations to limit flavors or labels thought to be more appealing to adolescents.
Safe Flavors
Everyone’s goal should be to provide consumers with the safest possible experience when using inhalable products containing flavors. What’s safe to eat isn’t always safe to inhale.
What’s Working?
Responsible suppliers implementing robust quality and regulatory pre-qualification measures for all flavor ingredients is a positive step. Vendors should be vetted, approved, and responsible for the products they supply. Encouraging manufacturers to develop comprehensive toxicological programs tailored for inhalation safety is also crucial.
What’s Not Working?
Requiring flavors or flavor ingredients to be listed on the pharmaceutical FDA IID for inhalation is inappropriate and does not guarantee a safer flavor. The only reason flavors or flavor ingredients may be in the FDA IID is because they already exist in pharmaceutical products that went through a safety review process. However, the flavors themselves haven’t been evaluated independently for inhalation safety (emphasis added).
Instead of mandating a specific database of flavors, it’s more appropriate to regulate the process of sourcing and validating ingredients.
Quality Specifications
Once a desirable and suitable flavor has been identified, manufacturers need to understand how to maintain quality.
What’s Working?
Adhering to the approach of FDA’s Food Safety Modernization Act (FSMA) for quality plans is best practice, ensuring hazards are identified and controlled by qualified individuals at each manufacturing stage.
What’s Not Working?
Overly broad testing requirements for non-cannabis-derived flavors or multi-ingredient cannabis products are redundant and economically unviable, particularly when hazards are effectively controlled through quality plans at earlier or later stages of a supply chain.
Labeling Practices
Finally, it’s important to examine how manufacturers should disclose when flavoring has been added to products. Consumers have a right to understand if a product is flavored.
What’s Working?
Simple, consumer-friendly labeling, such as using common terms like “Natural and Artificial Flavors,” aligns with other industry standards and will be recognized by the common consumer. Adopting labels familiar to the conventional Consumer Packaged Goods (CPG) industry effectively bridges the gap between industries and aligns with how consumers already make these decisions across all products they buy.
What’s Not Working?
Listing the chemical names of all flavoring ingredients, as mandated in Oregon, New York and Missouri, is excessive and may confuse or intimidate consumers. Consumers are not qualified to assess risk from formula information. Unregulated products that do not list flavor ingredients may become more appealing to some consumers that are intimidated by the chemical names on the flavor label of the licensed product.
Recommendations
Having reasonable and consistent regulations across the country will help to create a safe and level playing field for manufacturers and brands to compete for consumer market share. While nuanced, these regulations materially impact the ability to bring a product to market or make a product economically viable.
Starting with flexible flavor definitions allows for a wide range of internationally recognized flavor ingredients, including natural, artificial, and cannabis-inspired isolates.
Banning known risks is common sense best practice. This process must be dynamic and listen to science. For example, Diacetyl, once a popular popcorn flavoring, was banned after research concluded it was unsafe for inhalation. A known, published inhalation hazard list is critical.
Implementing a safety certification policy based on thorough toxicological risk assessments specific to inhalation exposure ensures accountability.
Finally, adopting simple and recognizable labeling terms like “Natural and Artificial Flavors” and aligning allergen disclosures with established FDA and EU regulations make sense and protect intellectual property. We are advocating for consistency.
These effective regulations prioritize safety without stifling innovation or burdening stakeholders. We welcome ongoing dialogue and collaboration to develop pragmatic, science-based regulations that benefit consumers and the industry.
In any industry, whenever we try to optimize a process, the first step is to collect data to understand the dependencies and identify bottlenecks. In cultivation, we are still lagging behind, and we accept an average process loss of 10-20%. How can we change that?
Cannabis cultivators will lead this transformation in cultivation
Cultivating and growing plants to their full potential takes experience and specialized skills. Cannabis is no different, and many would argue, can be even more difficult to grow compared to other plants; that is because cannabis is cultivated for multiple reasons. The majority of people know that cannabis is grown for recreational and medicinal use. However, cannabis is also grown for its hemp fiber to create paper, clothing, biofuel, and food. Cannabis is an extremely fast-growing plant. The plant attracts and is susceptible to many pests, including several types of insects, fungus, and bacteria. Another challenge with cannabis is the fact that it has not been grown at scale or studied to the extent of other crops. The legal cannabis industry has only been around since 2012, when Colorado and Washington were the first states to legalize recreational use. Growing cannabis is basically like driving a race car for the first time without knowing the course ahead. Good luck. Wouldn’t you want to know more about your race car, your team, and the uniqueness of the track in order to navigate with precision and skill? That’s exactly why data is such a powerful asset in cultivation, especially for cannabis cultivators.
Switch from qualitative to quantitative data
A lot of stress, miscommunication, and conflict in cultivation operations are due to the subjective nature of data collection. We rely on humans to assess a crop’s state and remember it when comparing historic results. “It looks better than last time.” or “It looks good.” – imagine if you could rely on numbers when making such statements: “We have 10% larger flowers than last cycle” or “This cultivar stretched until day 25 compared to the other cultivar which stopped stretching around day 30”. These are statements that are easy to agree on and hard to challenge since they are objective facts.
Capture a comprehensive set of data
The other important aspect to know about data is that data becomes exponentially more valuable the more complete and comprehensive it is. If you are baking bread and you only measure the flour but not the salt, water, or yeast, there is not much value to this information. The question we need to answer is what data allows us to draw a comprehensive picture of a garden. What data do you need to remotely steer a crop and guide a team on the ground? Cultivators heavily rely on the visual feedback of plants when assessing plant health. Being able to see the plants will be key but also to get a sense of plant health in numbers to allow for quantitative comparisons. Obviously, measuring environmental parameters like air temperature, relative humidity, light intensity, and CO2 is key to operating a cultivation facility. One of the most critical parameters to optimize is the Leaf Vapor Pressure Deficit or Leaf VPD. It provides information on how the plant is transpiring and, thus, how efficiently it can grow. In order to calculate the Leaf VPD, one also needs to know the leaf temperature. Substrate properties are another key piece of the cultivation puzzle. Water content, EC, and pH are important factors to navigate. Finally, it is important to know if any pests, molds, fungus, or viruses are present in the environment. And other factors are obviously key to measuring and understanding when operating a cultivation facility, like airflow, power consumption, etc. The more data you can capture the better you can consistently bake and optimize your favorite bread.
Leverage automation and AI to capture and process the data
However, when collecting data we need to keep in mind that all environmental parameters affect the same plant and, thus, they are all intertwined – in general, changing one parameter requires the adjustment of all other parameters as well. At the same time, the impact of these decisions is often only assessed by looking at the final yield, which makes it impossible to derive what influence each decision had on the respective result. Like in many other fields, modern automation and artificial intelligence are fueling the transition to data-driven decision-making in cultivation. And Cannabis, as one of the highest margin crops, is at the forefront of this evolution. Automated, intelligent systems can monitor your crop 24/7, allowing you to focus on fixing the issues rather than identifying them. They can measure properties across the full canopy, which have not been accessible before, like leaf temperature, bud count, plant stress, pests, and other crucial factors. They enable your team to assess the garden and to discuss its state remotely as well as to compare historic data across growth cycles.
Investing in data collection means making more money
The lack of data obviously results in inconsistencies and even crop loss—in cannabis, the industry average is 15% crop loss. Translation: millions of dollars lost, which goes even higher the larger the facility. That’s a significant amount of revenue that is lost instead of being deployed in other areas for expansion or optimization. In a highly competitive industry, implementing features such as data collection to minimize crop loss and optimize yield pays off quickly and can play a huge factor in a business’s long-term success.
Update from D.C.: The Latest on Marijuana Rescheduling and the Farm Bill
There were two major cannabis policy developments from Washington, D.C. last week: language of the proposed rule for rescheduling became available (accompanied by a video from the President reaffirming his commitment to reform) and the long anticipated text of the farm bill was released.
The text of the proposed rule confirmed that the Attorney General is seeking to move marijuana from Schedule I of the Controlled Substances Act (CSA) to Schedule III. Doing so would provide tax parity for the cannabis industry by ensuring legal businesses would no longer be subject to an arcane provision of the U.S. tax code — Section 280E — that prohibits deductions associated with “drug trafficking.”
The Department of Justice asked for public comment on various topics, including:
Facts and expert opinion on different forms, formulations, and delivery methods
Dosage and concentration information
Data on marijuana constituents, routes of administration, and impact of Delta-9 THC potency
Information regarding the scope, duration, and significance of marijuana abuse
Comments on the practical consequences of rescheduling marijuana to Schedule III under the relevant statutory frameworks
Comments on the economic impact of the proposed rule
Information on how rescheduling may impact “small entities”
The public comment period is officially open and will conclude on July 22. NCIA will be submitting comments during the rulemaking period on behalf of the hundreds of small businesses we represent in the legal cannabis industry.
In addition to this exciting announcement, the House Agriculture Committee also released the text of the overdue 2023 farm bill (the bill’s original deadline was September 30, 2023, but was extended for one year).
Included in the bill is language regarding hemp and hemp production. The 2018 farm bill legalized hemp by authorizing the production of hemp and removing hemp and hemp seeds from the CSA. Since then, the proliferation of hemp derived products containing various cannabinoids (CBD, Delta-8, THC-A, etc) has become commonplace. The increase of intoxicating products derived from hemp has concerned many — including those in Congress.
During the Committee markup, an amendment was offered by Rep. Mary Miller (R-IL) that would federally ban all ingestible hemp products with any level of THC. The amendment passed via voice vote.
This is an area we at NCIA are keeping a close watch. As the association that represents the entire cannabinoid industry, we are urging Congress to eschew the failed policies of prohibition and to instead move to regulate hemp and marijuana-derived products equally. Make sure you check out our brand new position paper “Navigating the Future of Cannabinoid Regulation: Balancing Safety, Innovation, and Consumer Access”, which delves into the complexities of cannabinoid production, differentiating between plant-extracted and synthesized cannabinoids. It also addresses the challenges posed by the current regulatory landscape and advocates for a common-sense federal framework that emphasizes safety, consistency, and quality across all cannabis-derived products.
Empower Your Voice: Unveiling NCIA’s Updated Congressional Scorecard
In just over 200 days, people across the country will head to the ballot box to make their voices heard. As you take the time to consider the issues that matter the most to you and which candidates best align with those values, NCIA is here to help with our recently updated congressional scorecard.
Our scorecard shows how members of Congress have voted and who has supported various cannabis bills over both the previous (117th) and current (118th) sessions.
With more than 500 members, it can be hard to keep track of votes and congressional support on the issues that matter the most to you and your business. During the 117th congress, the House of Representatives voted on both the Secure and Fair Enforcement (SAFE) Banking Act (H.R. 1996) and the Marijuana Opportunity, Reinvestment, and Expungement (MORE) Act (H.R. 3617). There has not yet been any floor votes on these bills (or other) priority cannabis legislation over the course of the current (118th) congress. That being said, our scorecard does show how members of the Senate Banking Committee voted on the SAFER (Secure and Fair Enforcement Regulation) Banking Act during a September 2023 markup of the bill. The scorecard also shows which members of the Senate have signed on as cosponsors of the SAFER Banking Act (keep in mind there are about a handful of members who signed onto the SAFE Banking Act, but have yet to support this newer iteration).
Though it may seem silly, I’m envious of your ability to look at these voting records. As a resident of Washington, D.C., I (along with hundreds of thousands of my neighbors) am subject to taxation without representation and have no voting member of Congress. D.C. has also been unable to fully implement its voter approved 2014 adult-use initiative due to congressional interference, but that’s a story for another blog!
I hope this scorecard helps you continue to hold your elected officials accountable- both at the ballot box and through civic engagement. I also hope this tool will empower you to get involved with government- at any level- whether that be by setting a meeting with one of your representatives’ district offices, attending a town hall meeting, or volunteering on a campaign. Don’t forget to make sure you’re registered to vote, and if you’re unsure about who your elected officials in Washington are, you can click here. Lastly, one of the best (in my humble opinion) ways to make an impact on elected officials is by attending our annual cannabis industry lobby days. Make sure you mark your calendars for May 14-16 and register today to get the best rate!
California Cannabis Regulations: From Policy to Practice | Policy Matters | 02.08.24
Illuminating California’s Cannabis Regulations: Insights from Industry Leaders
Welcome to the fourth edition of our esteemed Policy Matters series, where we embark on a journey through the intricate landscape of California cannabis regulations. This series, made possible by the collaborative efforts of the National Cannabis Industry Association (NCIA) and its dedicated Policy Co-Chairs, Khurshid Khoja of Greenbridge Corporate Counsel and Michael Cooper of MadisonJay Solutions, serves as a beacon of insight and discourse in the ever-evolving landscape of cannabis regulation.
Building upon the foundational discussions initiated by our previous editions, this installment shines a spotlight on California’s pioneering strides in cannabis policy. In this blog post, we’ll delve deep into the dialogues and revelations shared during the recent webinar broadcast hosted by the NCIA, exploring the multifaceted dynamics of policy-making and enforcement in one of the nation’s most influential cannabis markets with Nicole Elliott, Director of the California Department of Cannabis Control.
Brian Gilbert, Deputy Director of Events and Education at NCIA, set the stage for the discussion, emphasizing the importance of dialogue and collaboration in navigating the complexities of California cannabis regulations. With California serving as a focal point, the webinar delved into the multifaceted aspects of cannabis policy and enforcement.
Understanding Cannabis Policy in California & Journey to the Role
Kicking off the conversation by recognizing the pivotal role of Nicole as one of the longest serving and most experienced cannabis regulators in the country, Khurshid & Michael expressed gratitude for her contributions to the industry. Nicole then shared her journey from local government to cannabis regulation, highlighting her commitment to social justice and equity. Her firsthand experiences with the criminal justice system underscored the importance of inclusive policies and community engagement in shaping regulatory frameworks.
An emphasis was placed on the significance of California’s regulatory evolution from a pioneering medical marketplace and its impact on industry inclusivity and diversity. From supporting legacy operators to promoting market stability, California’s regulatory efforts have paved the way for innovative initiatives like the Appalachians of Origin program, reflecting a commitment to equitable industry growth.
Enforcement Strategies and Real California Cannabis Campaign
Throughout the conversation, Nicole emphasized the importance of aggressive enforcement strategies to combat the illicit market effectively. California’s Unified Cannabis Enforcement Task Force spearheads enforcement efforts, targeting illegal activities such as labor trafficking and environmental contamination. The introduction of the Real California Cannabis campaign aims to shift consumer purchases to legal markets, fostering accountability and consumer safety.
Commitment to Social Equity and Compliance
At a pivotal moment, Nicole Elliott acknowledged historical inequities in the cannabis industry, advocating for initiatives beyond licensing solutions. Fee waivers and promising practices are key components of California’s social equity programs, promoting inclusivity and supporting operators from marginalized communities.
With consumer safety at the forefront, the Department of Cannabis Control prioritizes compliance and transparency in enforcement actions. Operators must adhere to regulations to ensure product safety, with penalties imposed for non-compliance. Transparent enforcement actions empower operators to uphold regulatory standards and foster consumer trust.
Challenges and Opportunities, Partnerships and Collaboration
The influx of hemp-derived cannabinoid products presents regulatory challenges at the federal and state levels. Collaborative efforts between regulators and industry stakeholders are essential to address public health concerns and ensure regulatory compliance. Federal rescheduling efforts and cultivator regulations further underscore the need for adaptive regulatory frameworks that prioritize consumer safety and industry viability.
The webinar highlighted the importance of partnerships and collaboration in addressing regulatory challenges and fostering a safe and thriving cannabis market. Organizations like the Cannabis Regulators Association (CANNRA) play a pivotal role in facilitating dialogue and sharing best practices among regulators and industry stakeholders.
Curtains Drawn: Reflecting on Insights, Looking Forward to Action
As we draw the curtains on yet another insightful edition of our Policy Matters series, we extend our heartfelt gratitude to our readers, esteemed speakers, and the unwavering guidance of NCIA’s Policy Co-Chairs, Khurshid Khoja and Michael Cooper. Their steadfast commitment to fostering dialogue and collaboration has been instrumental in shaping the discourse surrounding cannabis regulation and policy.
To delve deeper into these discussions and gain comprehensive insights on California cannabis regulations, we encourage you to view the complete recording of the webinar on our YouTube channel. There, you’ll find a wealth of information and perspectives from our esteemed speakers, shedding light on the complexities and opportunities within the California cannabis regulatory landscape.
From the corridors of Maryland to the rugged landscapes of Maine, and the vibrant markets of Michigan and California, each edition has illuminated the diverse spectrum of regulatory frameworks and industry dynamics shaping the cannabis landscape. As we eagerly anticipate future editions, let us continue our pursuit of knowledge, empathy, and innovation, forging a path towards a more equitable and prosperous cannabis industry for all stakeholders involved.
California Stakeholder Summit: Bridging Policy and Practice
We hope you’ve made plans to join us for our California Stakeholder Summit, taking place later this month on Thursday, February 22nd in Sacramento, CA. This event promises to be a pivotal moment for stakeholders across the California cannabis industry as we convene to explore topics including proposed state legislation affecting hemp-derived cannabinoid products and the impact of federal rescheduling on state-legal markets.
Nicole Elliott will be speaking on a panel alongside Congresswoman Barbara Lee (D-Oakland) and moderated by NCIA Director of Government Relations Michelle Rutter Friberg. Together, they will delve into the complexities of federal rescheduling and its implications for California’s cannabis regulations and dynamic marketplace.
Join us as we bridge the gap between policy and practice, forging meaningful connections and driving forward progress in one of the nation’s most influential cannabis markets. Don’t miss this opportunity to be part of the conversation shaping the future of cannabis regulation in California and beyond. Register now to secure your place at the California Stakeholder Summit 2024.
Navigating the Cannabis Landscape: Federal Cannabis Reform Outlook for 2024
A month into 2024, Congress is (still) grappling with a number of urgent, must-pass bills related to issues like border security, aid for Ukraine and Israel, and the federal budget. At a time when the government seems more dysfunctional than ever, it’s important to remember that this chaos results in cannabis issues (and unfortunately, many others) having difficulty in gaining traction in Congress. As a result, cannabis legislation and priorities have been slow moving so far this year- but I feel confident that there’s light at the end of the tunnel!
SAFE Banking
To recap: the ever-elusive SAFE Banking Act was reintroduced in 2023 by Senators Jeff Merkley (D-OR) and Steve Daines (R-MT) alongside Representatives Earl Blumenauer (D-OR) and Dave Joyce (R-OH). Soon after, the Senate Committee on Banking, Housing, and Urban Affairs held a hearing titled “Examining Cannabis Banking Challenges of Small Businesses and Workers” discussing both the bill and the topic of cannabis banking broadly.
As the momentum for SAFE Banking increased, so did some Senators’ concerns– primarily surrounding a provision that would bar federal banking regulators from taking discriminatory enforcement action against any industry.
As a result, an updated version of the bill called the SAFER (Secure and Fair Enforcement Regulation) Banking Act was introduced, marked up by the Committee, and passed out of Committee by a vote of 16-14 in late September 2023.
That brings us to 2024. Although SAFER has not been scheduled for a floor vote yet, NCIA is cautiously optimistic on its chances this year — whether that be as a standalone bill or attached to another larger financial services related package. That being said, the bill will undoubtedly face an uphill battle no matter how it arrives at the GOP-controlled House of Representatives.
Other Congressional News
Outside of SAFE(R) Banking, there has been some additional congressional cannabis news in 2024 including a Senate letter urging descheduling, a bicameral letter regarding Chinese-related illicit grow operations, and a new Congressional Research Service (CRS) report on the impact of moving cannabis from Schedule I to III in the federal Controlled Substances Act.
In late January, Senators Elizabeth Warren (D-MA) and John Fetterman (D-PA), led nine of their Democratic colleagues (including Senate Majority Leader Chuck Schumer [D-NY]), in sending a letter to Attorney General Merrick Garland and Drug Enforcement (DEA) Administrator Anne Milgram. The letter urged Milgram and Garland to remove marijuana from Schedule I of the Controlled Substances Act entirely, commonly known as descheduling.
Then, just days ago, Senators Joni Ernst (R-IA) and Angus King (I-ME) alongside Congressmen Pete Sessions (R-TX), Jared Golden (D-ME), and David Valadao (R-CA) led 48 of their colleagues in calling on Attorney General Merrick Garland to prevent any national security risk and end any illicit human trafficking connected to Chinese-linked marijuana farms in the United States.
In the bipartisan, bicameral letter, the lawmakers pointed out that Chinese nationals (some with potential ties to the Chinese Communist Party), are operating marijuana farms across the country and even potentially engaging in human and drug trafficking in conjunction with these operations. The lawmakers asked the Department of Justice for a briefing on the topic by the end of the month and posed several specific questions for the agency.
In mid-January, the Congressional Research Service (CRS) released a new report titled “Legal Consequences of Rescheduling Marijuana” that primarily focused on “Legal Consequences If Marijuana Moved to Schedule III” and considerations for Congress. CRS works for members of Congress and their committees and staff on a confidential, nonpartisan basis and is highly regarded here in Washington, D.C.
Biden Administration
In 2022, the Biden Administration announced that it would ask the Secretary of Health and Human Services (HHS) and the Attorney General to initiate the administrative process to review how marijuana is scheduled under federal law.
As a result, in August 2023, news broke that the Department of Health and Human Services (HHS) recommended to the Drug Enforcement Administration (DEA) that cannabis be rescheduled and placed in Schedule III, meaning that it has moderate to low abuse potential, a currently accepted medical use, and a low potential for psychological dependence. Since then, the DEA has been conducting their review of where marijuana should be placed in the Controlled Substances Act, which will then be followed by a public comment period.
To be clear, NCIA supports ending the criminalization of our industry by removing cannabis (including THC) from the federal Controlled Substances Act altogether so that our businesses are treated like all other lawful American businesses. That being said, it’s likely that the DEA will follow the HHS recommendations and choose to place marijuana in Schedule III.
While NCIA continues to draft our response to the inevitable announcement — whatever it may be — we also want to hear from our members about their views on this critical issue. If you are a member of NCIA, check your inbox for a link to our online survey in order to make your voice heard. If your business isn’t yet a member but you want to get off the sidelines of the cannabis reform movement, join today! NCIA is proudly the only organization focused on representing independent businesses in our nation’s capital and the work we do moving policy reforms forward is only possible because of the hundreds of businesses that make up our membership.
It goes without saying that 2024 is shaping up to be a big one for federal cannabis policy reform. Stay connected and engaged by attending one of our upcoming Stakeholder Summits where you can engage and learn from state officials, federal policymakers, and even me!
If you really want to play a bigger role in advancing cannabis policy reform, we hope you’ll also join us in Washington, D.C. for our 12th Annual Cannabis Industry Lobby Days this May. See you there!
Ohio Becomes 24th State to Regulate Adult-Use!
On November 7, voters in the Ohio overwhelmingly approved Issue 2 which legalizes and regulates the sale and production of cannabis for adults over 21. The initiative, which goes into effect December 7, will legalize the possession of up to 2.5 ounces and the personal cultivation of up to six plants.
The initiative requires state regulators begin approving retail licenses by September 2024. The measure includes a 10% sales tax which directs funds to municipalities with dispensaries as well as vital services such as addiction treatment and social equity and jobs programs.
Ohio will become the 24th state to regulate the adult-use market and the move sets the percentage of Americans living in a state with legal cannabis to 53%.
“Congratulations to the Buckeye State. Well over half of Americans now live in a state that has opted to replace marijuana prohibition with laws that foster a well regulated, responsible adult cannabis market.” Stated NCIA CEO & Co-founder, Aaron Smith. “Now let’s make sure Congress and the White House make federal reform a priority as we head into 2024.”
Despite overwhelming voter support, prohibitionist Republican state legislators are already working to gut the initiative. Read more at Marijuana Moment.
Apply Now to Join One of NCIA’s Member Led Committees!
One of the best ways to increase your engagement with NCIA is to participate on one of our member-led committees. Committee members keep a finger on the pulse of our industry by meeting virtually to discuss current pain points for their industry sector as well as solutions for those problems. Members work together to write blogs, publish industry reports & white papers, produce educational webinars, and develop policy-related call-to-actions. These resources are vital for informing industry stakeholders, lawmakers, and the general public. This is also a great opportunity to not only ensure your company is included as a thought leader in the industry and gain brand exposure, but also give back to the industry through sharing your expertise.
Community Collaboration
NCIA Committees are hubs of cross-collaboration and offer unique networking opportunities by bringing together professionals that are committed to advancing the industry. You can collaborate, share knowledge, and establish meaningful relationships that can open doors and create opportunities. Individual committees as well as all of our Committee Officers meet regularly on a monthly basis to discuss their own projects as well as identify areas of collaboration.
Many of our committees also engage with our Social Equity members through a “Hot Seat” and “Ask Us Anything” style platform. In this forum, our Social Equity Members complete a short questionnaire, then attend a virtual meeting to have their questions answered by committee members. This is a valuable opportunity for our Social Equity members to not only get curated advice on how to advance their business, but also get connected with other business owners in the industry.
Essential Education and Industry Insights
NCIA Committees empower members with the unique opportunity to produce and contribute to educational content. Our Committees actively create content that benefits the entire industry and provide expert insights into various issues, trends, and challenges impacting our industry. Interested in what type of projects our committees have worked on? Take look at some of the content our committees have produced this past term:
The Cannabis Manufacturing, Hemp, & Scientific Advisory Committee joined forces to present a compelling five-part series of #IndustryEssentials webinars which explored a spectrum of critical industry topics surrounding minor, novel & synthetic cannabinoids from consumer safety, occupational health and regulatory considerations to enhancing workplace safety, and fostering dialogue around the broader cannabinoid landscape.
The Risk Management & Insurance Committee published a comprehensive series of resources that illuminated the intricate landscape of risk management, legal challenges, and insurance considerations surrounding novel cannabinoids. A blog post initiated the discussion, while an updated industry report delved deep into the novel cannabinoid conundrum, exploring loopholes, liability, and legislation. Finally, a live webinar then provided a dynamic platform for experts to further dissect these critical topics further.
NCIA Committee members contribute to the development of talking points and actively participate in our in-person Lobby Days in unique ways, such as meeting with the Committees on Agriculture, Nutrition, and Forestry this past year. NCIA Committees also take an active role in advocating for federal policy that affect their respective sectors. For example, NCIA’s Hemp Committee published this call to action, encouraging the industry to contact their representatives about adding amendments to the Farm Bill which is set to expire soon.
Still not sure committee involvement is right for you? Don’t take our word for it, read what Banking and Financial Services Vice Chair, Kameron Richards, has to say:
For existing NCIA members, applying for a Committee is a straightforward process. In order to apply to a committee, your company should be an active member willing to maintain your membership throughout 2024. Appointees may serve on no more than one committee at one time. Companies may only hold one seat per committee. Appointees must be engaged in all committee meetings and committee work, and should expect to commit 3-5 hours/month on committee-related work.
For those who are not yet NCIA members, now is the perfect time to join and seize the opportunities our Committees offer. By becoming a member, you gain access to this powerful network and countless resources that can elevate your involvement in the cannabis industry. You can secure your membership on our website today, once your membership is processed, apply to join one of our Committees during the application period here
Joining an NCIA Committee is a transformative opportunity for those who seek to maximize their impact in the cannabis industry. These Committees not only empower you with knowledge and connections but also provide exclusive opportunities for content creation and cross-collaboration. Whether you’re a current member or considering joining, don’t miss the chance to collaborate, learn, and make a difference within the cannabis industry.
NCIA (and myself personally!) have been talking about the SAFE Banking Act for years.
After the Senate Banking Committee’s hearing on the topic of financial services and the cannabis industry in May, it became clear that in order for the bill to continue on in the legislative process and receive a markup that changes to a few sections needed to be made.
As a result, a slightly new (and improved?) version of the bill was introduced as the SAFER (S. 2860: Secure and Fair Enforcement Regulation) Banking Act last month. Most of the changes in the bill pertained to Section 10, which bars federal banking regulators from taking discriminatory enforcement action against any industry (not just cannabis).
Once SAFER was formally introduced, the Senate Banking Committee announced that a markup was scheduled for September 27. It’s important to note that this was the firsttime ever that a Senate committee held a markup on a pro-cannabis bill.
During the markup session, multiple amendments were offered. The first, offered by Chairman Brown (D-OH) was what’s known as a “manager’s amendment” and primarily made technical changes to the bill. That amendment also made changes so that the Treasury secretary would be given one year (instead of 180 days) to issue updated guidance to financial institutions that work with cannabis businesses that was first released during the Obama administration in 2014. It also stipulated that federal home loan banks are now included under a list of financial institutions that would be protected from being penalized by federal regulators simply for working with state-legal cannabis businesses.
Another amendment, from Sen. Warnock (D-GA) would have created a 5-year sunset for the legislation unless a report from the Treasury Department certified that it had decreased the racial wealth gap and ameliorated other negative economic impacts of the war on drugs. This amendment ultimately failed.
Additionally, amendments from Senators Hagerty (R-TN), Rounds (R-SD), Crapo (R-ID) were also offered but were ruled out of order, withdrawn, and failed, respectively.
Republican members of the committee voiced concern that the bill allowed for financial institutes to utilize reputational risk to de-bank certain accounts they do not align with ideologically and argued that no financial regulator should be able to pressure any financial entity to refuse to provide service to a lawful entity.
Some Democrat members, particularly Sen. Warnock (D-GA), voiced concern that the bill does not adequately address the disproportionate impacts of marijuana criminalization and its exacerbation of the racial wealth gap in the United States. Other members of the committee encouraged amendments and future legislation intended to improve the quality of life for those most negatively impacted by marijuana criminalization in addition to creating safer conditions for banks and other financial institutions. Sen. Warnock was the lone Democrat who voted “No” on the bill during the markup.
Ultimately, the bill passed out of the committee markup by a bipartisan vote of 14-9. This sets the stage for a full Senate floor vote, which Majority Leader Schumer (D-NY) has committed to scheduling as soon as possible, with the possibility of adding the HOPE and GRAM Acts to the bill before passage.
I don’t know about you, but I’m not done making history yet! Stay tuned for the latest on the SAFER Banking Act and how you can help get the bill passed!
NCIA Accepting Applications For 2024-2026 Board of Directors Term
NCIA is now accepting applications for eligible candidates to apply for the board through Friday, November 17, 2023.
The National Cannabis Industry Association is a nonprofit organization run for and by its membership, so we hope you’ll consider this opportunity to apply for a seat on the NCIA Board.
Serving on NCIA’s Board of Directors is no small task. Board members are responsible for overseeing the strategic direction of the largest and most influential cannabis industry organization in the country. Board Members are also responsible for building membership, fundraising, and ensuring that NCIA continues to be the strongest force advocating for the fair and equal treatment of the industry on Capitol Hill.
Current NCIA members in good standing are eligible to apply for a seat on the board. NCIA members who are interested and qualified to serve on our board are encouraged to submit an application for review by our nominating committee before the November 10 deadline.
Candidates may apply directly for a board position during the open application process. The application form asks for information about the candidate’s professional background, unique talents, skills, and viewpoints, and ability to contribute or raise financial resources for NCIA. Candidates must be fiduciaries of a NCIA member-business or be designated by a company fiduciary to serve on our board.
Who Qualifies To Run For A Board Position?
To be considered for a seat on the board, a candidate must be a fiduciary (e.g. owner, president, CEO) of a current member business at any level of membership or must be a representative of the business that has been appointed to serve by a fiduciary. Candidates must submit an application online by November 10.
What Are The Requirements For An NCIA Board Member?
Board members serve two-year terms and are responsible for overseeing the association’s overall strategy and budget, assisting in the development of strategic relationships, and serving as ambassadors of NCIA, which represents hundreds of member businesses. In general, the NCIA board meets in person twice and conducts 3-4 additional video conferences per year.
How Are The Board Positions Selected?
Once the application period closes, NCIA’s Nominations Committee will convene to carefully review and score all applications. The committee will ultimately select a slate of nominees to fill eight (8) available board seats that are best suited to bring additional talent, resources, and diversity to our growing organization, based on their qualifications.
Our Nominating Committee will comprise the chairs of our 14 member committees as well as a select number of current board members whose terms are not expiring this year. Once the Nominating Committee selects the slate of eight members will be notified at the end of this year.
The Hemp Industry needs your help. The 2018 Farm Bill, which made it legal to grow and process hemp, was a big step forward for the larger Cannabis industry. After the bill passed, lots of growers, processors, and manufacturers started building the Hemp Industry. Like any new industry, it’s had its ups and downs. But there are some big roadblocks that Congress can remove to help the Hemp Industry grow and set the stage for better rules around all Cannabis in the future.
2023 is a crucial year for American hemp producers as the 2018 Farm Bill is due to expire. Congress is now drafting a new Farm Bill that will direct our agricultural and food systems for the next half-decade. During this critical period, the NCIA Hemp Committee is working tirelessly to rally support for amendments that will not only benefit the industry but also our customers. Our requests are as follows:
Update the legal definition of hemp to allow for up to 1% Total THC: This would offer critical protection for farmers and processors, as the current legal limit can sometimes be exceeded naturally in the crop growth process, leading to crop loss and financial hardship.
Support the Growth of the Hemp Industry by Encouraging Banking and Lending Services: The Treasury department should provide written guidance for banking and lending services to hemp-related businesses, removing barriers to growth in this burgeoning industry.
Support HR 3755 for Non-consumable Hemp: By recognizing the distinction between consumable and non-consumable hemp products, we can encourage the development of a wide range of industrial applications for hemp, from textiles to building materials.
Prevent Misuse of THC by Teens and Young Adults: This requires comprehensive educational initiatives to provide accurate information about THC and its potential effects. In doing so, we can ensure that the growth of the hemp industry does not inadvertently lead to misuse of THC among young populations.
During the recent NCIA Lobby Days, we had constructive meetings with influential decision-makers, including members of the Agricultural Committee and their staff. Our team left these sessions with a sense of hope and determination, having shared our top four priorities and discussed other important issues. Now, we’re calling on you, the supporters of the Hemp Industry, to make your voices heard and contact your members of Congress to showcase broad support for these initiatives.
“NCIA Lobby Days provides the stage and podium, and you bring the voice. We meet with decision makers (congressional staff) who ARE interested in our real-life scenarios, and it educates them to educate their Senate and House of Representative leaders. Education is power. It (Lobby Days) also provides an environment to meet like-minded people in the cannabis industry, share our stores, learn/educate, and collaborate. I plan to attend each year as it is enlightening and empowering!” Jillian Johnson
How can you help?
Remember, members of Congress are elected to represent the interests of their constituents – that’s you. But they can only effectively do so when they’re fully informed about the issues that matter to you. Your voice is powerful and essential to our democratic process. By speaking up, you can provide important insights and help shape the future of the Hemp Industry.
Breaking Down the Recent Cannabis Rescheduling Recommendation
For more than fifty years, the federal government has maintained that cannabis is a Schedule I drug, meaning that it has a high potential for abuse and no accepted medical value. That changed last week (somewhat) when the Department of Health and Human Services (HHS) recommended to the Drug Enforcement Administration (DEA) that cannabis be placed in Schedule III, meaning that it has moderate to low abuse potential, a currently accepted medical use, and a low potential for psychological dependence.
Why now?
In October 2022, the Biden Administration announced that it would ask the Secretary of HHS and the Attorney General to initiate the administrative process to review expeditiously how marijuana is scheduled under federal law. As the Brookings Institute outlined years ago, the Executive process for rescheduling is much more complex than the Legislative path.
It’s no secret that the presidential election is barely more than a year away, and the President seems to be looking to make good on his campaign promise to reform the nation’s marijuana laws.
What does this mean?
First off, it’s critical to note that HHS’ recommendation to DEA is just that: a recommendation. It is non-binding. The DEA may come to the same conclusion that HHS did, but is not required to.
If cannabis is moved to Schedule III of the Controlled Substances Act, one positive outcome would be that 280E would no longer apply to plant-touching businesses, removing an incredibly punitive and debilitating provision in the tax code.
According to NCIA’s board chair emeritus, Khurshid Khoja, Esq., “…it’s important to remember that rescheduling would not apply the federal Food Drug and Cosmetic Act (FDCA) to marijuana for the first time—it applies right now, and like the federal Controlled Substances Act (CSA), would continue to apply after rescheduling. But absent any statutory authority permitting FDA to do otherwise, the FDCA would continue to apply after descheduling too, just as it does to hemp products.”
Others claim that the shift to Schedule III would have minimal impact on businesses and individuals. Here at NCIA, we’re cautiously optimistic but recognize that moving cannabis to schedule III could have some limited benefit but does nothing to align federal law with the 38 U.S. states which have already effectively regulated cannabis for medical or adult use.
What now?
Now that HHS has made their recommendation, the DEA will begin its scheduling review process.
Many are divided about what a move to Schedule III would actually look like. Yes, there would be the elimination of 280E, but what about enforcement priorities? Interstate commerce? Criminal penalties? There are so many unknowns.
NCIA has previously produced a common sense, workable roadmap for that federal comprehensive reform and provided detailed feedback on legislative efforts. It is time for Congress to follow the will of the American people. Don’t get me wrong, there’s no doubt that this recommendation is a step in the right direction and is long overdue. But we can’t lose sight of the ultimate goal: removing cannabis from the Controlled Substances Act entirely.
Have questions?
Join NCIA on September 14 at 1 pm ET for an engaging webinar where we will unpack all your questions! Register today and don’t miss your chance to hear more about what this means for the cannabis industry and your business.
Committee Blog: Why 1% Total THC Could Open New Doors for the Hemp Industry
As we look forward to the 2023 US Farm Bill, there’s a substantial opportunity to modify the regulations around hemp cultivation and usage. Adjusting these regulations can stimulate the growth of the hemp industry while still ensuring consumer safety. The potential of hemp as an agricultural product is vast, with applications including food, fuel, fiber, building materials, grain, and medical use. It’s important to note that while cannabinoids often dominate the headlines, they make up only a small slice of the industry’s potential size.
Experts predict that incorporating hemp into cosmetics, construction materials, and textiles could catapult the industry to over $1 trillion in annual sales. However, the current regulations pose significant challenges to this innovative industry’s expansion, especially for conscientious farmers. The fear of having their crops destroyed because of slightly exceeding a set THC limit is a serious obstacle.
At present, the definition of hemp rests on a Total THC limit of 0.3%, a figure chosen in the 1970s for classification purposes, not for assessing the plant’s psychoactive effects. Bumping this limit up to 1% Total THC would have a negligible impact on impairment but could have a monumental effect on farmers’ operations.
Research from 2020 by the University of Illinois, University of Wisconsin, Michigan State University, and Purdue demonstrated that more than half of the common hemp varieties could surpass the Total THC limit under certain conditions. However, this research also revealed that only 4% would breach the limit if it were raised to 1%.
Growing hemp that exhibits desirable traits for industrial uses, like a long straight stalk, high fiber, or high seed yield, requires the plant’s full maturation. This maturation is often linked to higher THC profiles. Unfortunately, the current strict conditions and genetic variation restrictions severely limit the plant’s potential applications.
While responsible hemp growers are in favor of state-led regulations for cannabinoid extractions that can cause impairment, it’s clear that an unrealistically low THC limit isn’t the best approach. Other nations, such as Thailand, Mexico, and Switzerland, have already updated their regulations, defining hemp as containing up to 1% Total THC.
By making a small change to the legal definition of hemp, we can unlock the industry’s potential. It will allow farmers across the nation to make the necessary investments to keep pace with an industry set to grow from being worth billions to trillions of dollars. By encouraging this change, we can foster American innovation and boost rural economies, reinvigorating the manufacturing sector in the process. Now is the time to recognize and adapt to the potential of this versatile plant.
How can you help?
Remember, members of Congress are elected to represent the interests of their constituents – that’s you. But they can only effectively do so when they’re fully informed about the issues that matter to you. Your voice is powerful and essential to our democratic process. By speaking up, you can provide important insights and help shape the future of the Hemp Industry.
Summer Recess & Cannabis Progress: Cannabis News from the Capitol and Expectations for the August Break
by Michelle Rutter Friberg, NCIA’s Director of Government Relations
After NCIA’s 11th Annual Cannabis Industry Lobby Days concluded in May, cannabis news from Washington, D.C. has been relatively slow. Curious about what’s next before August recess begins? Keep reading to see what may happen ahead of the break and for a recap on where we’re at now.
SAFE Banking
Last month, just before NCIA’s Lobby Days, the Senate Banking, Housing, and Urban Affairs Committee held a hearing titled “Examining Cannabis Banking Challenges of Small Businesses and Workers”. Witnesses included the bill’s lead sponsors, Senators Jeff Merkley (D-OR) and Steve Daines (R-MT), as well as Ademola Oyefes (International Vice President and Director of Legislative and Political Action Department, United Food and Commercial Workers International Union [UFCW]), Michelle Sullivan (Chief Risk & Compliance Officer, Dama Financial), Dr. Kevin Sabet (President/CEO, Smart Approaches to Marijuana [Project SAM]); and Cat Packer (Vice Chair, Cannabis Regulators of Color Coalition).
My takeaways from the hearing: no new talking points from Project SAM, surprised by DAMA’s comments (they’ve since walked their testimony [which many saw as opposition to the bill] back), and most importantly of all: the real need for SAFE so that we can stop talking about access to financial services and start talking about legalizing and regulation cannabis in a smart and equitable way.
As for what’s next? Banking Committee Chairman Sen. Sherrod Brown (D-OH) recently shared that SAFE Banking would be scheduled for a markup after a few other bills received theirs. The good news? That process has begun. The bad news? Still no formal news on when SAFE’s markup will be. I’m expecting it to be after the Fourth of July break but before members leave D.C. for their annual, month-long August recess.
Appropriations
For years, advocates have looked to the appropriations process as a way in which to enact cannabis reform at the federal level.
In 2014, a provision that protected medical cannabis patients, programs, and businesses from federal interference (known as the “Rohrabacher-Farr” amendment) was included in the federal budget and became law. Since then, the provision has been included in appropriations bills and remains the law of the land.
NCIA has (and continues to) lobby on behalf of expanding this provision to include adult-use businesses and to also use the appropriations process to enact other reforms like allowing Washington, D.C. to commercialize adult-use cannabis sales.
House GOP negotiators heightened the stakes earlier this week when they announced they would mark up their FY2024 spending plans to levels lower than the budget caps set as part of a deal struck between President Biden and Speaker Kevin McCarthy (R-CA). This will undoubtedly make the already contentious budget-process even more volatile.
Maryland
On July 1, adult-use cannabis sales will begin in Maryland. Cannabis became legal for those over 21 in Virginia in 2021, while D.C. legalized cannabis for adults via Initiative 71 in 2014 (but have been unable to begin sales due to congressional interference). Legal sales in the District’s neighboring states means that members of Congress will surely be more exposed to the benefits of regulation.
So, while it’s been relatively quiet in D.C. in June, stay tuned in July for a possible first-ever Senate markup of SAFE Banking! As always, NCIA will continue to advocate on behalf of your business and keep you updated on the latest.
Step Inside NCIA’s In-Person Events of 2023: An Exclusive Recap
NCIA is thrilled to have brought back our highly anticipated in-person events during the first half of 2023. We extend our heartfelt gratitude to the over 1200 members and supporters from 400+ companies who joined us on the road from January to May. Together, we experienced 10 Industry Socials, the revival of our renowned Cannabis Caucuses, the launch of social equity-focused workshops, and, of course, our 11th Annual Cannabis Industry Lobby Days. Join us as we reflect on the past five months, relive the excitement, and share the key moments from these events that fostered community building, provided education, and advanced our advocacy efforts.
Our event schedule took us to several prominent cities in both established and emerging markets, including San Francisco, Los Angeles, St. Louis, Seattle, Boston, Miami, Portland, OR, New York, Chicago, and Detroit, where we hosted our Industry Socials. These events served as a catalyst for bringing together local cannabis communities, providing them with a platform to network and reconnect with our dedicated NCIA staff and sponsors in a relaxed and informal setting. Besides fostering networking, these events provided attendees with the opportunity to meet and learn from our local Allied Association Program members and regulatory representatives, including MoCannTrade, The Cannabis Alliance, the Cannabis Industry Alliance of Oregon, and the New York Office of Cannabis Management.
During our event in Missouri, Andrew Mullins and Melissa Khan from MOCannTrade provided valuable insights into the recent implementation of legalization in the state. They shared details about the issuance of over 400 licenses, including those for Cultivation Facilities, Manufacturing Facilities, Dispensaries, Testing Labs, and Certified Transporters as well as talked about the yet to be issued Microbusiness Facility Licenses. They also highlighted the historic tax revenue generated during the opening weekend of sales, which amounted to an impressive $12.6 million.
In Washington, Burl Bryson, Executive Director at The Cannabis Alliance, discussed the recent passage of S.B. 5546 in the Senate. Although the bill, aimed at establishing a Washington state cannabis commission, faced challenges in the Appropriations Committee in early April, we encourage you to explore the provided resources, including an Issue Brief, FAQ, and Webinar Wednesday, to gain a deeper understanding of the commission’s purpose.
Photo Credit: The Hood Collective
In April, Jesse Bonteceau of The Cannabis Industry Alliance of Oregon highlighted recent developments surrounding new testing regulations proposed by the OLCC, specifically regarding Aspergillus. Jesse also shed light on the regional industry coalition’s strategy to address this situation. Emphasizing the importance of engaging in both regional and national advocacy efforts, Jesse shared ORCA’s participation in NCIA’s 9th Annual Cannabis Industry Lobby Days and encouraged attendees to join both associations to ensure our collective efforts continue to make an impact.
At our New York Industry Social, Axel Bernabe, the Chief of Staff & Senior Policy Director for New York’s Office of Cannabis Management, discussed the rapid growth of the regulatory office, which now boasts a dedicated team of over 250 employees. Axel also shared updates on the issuance of Conditional Adult-Use Retail Dispensary (CAURD) licenses, marking a significant milestone for legal adult-use cannabis sales in New York State. He also addressed the efforts to combat unregulated cannabis sales, which undermine the legal businesses in the state.
Following a three-year hiatus, we hosted an unforgettable Cannabis Caucus in Denver, in collaboration with the Marijuana Industry Group. The event, attended by over 200 participants, took place at the Chambers Grant Salon space in the prestigious Ellie Caulkins Opera House. It featured a video address by Governor Jared Polis, an in-depth discussion on the regional industry landscape by the Marijuana Industry Group, and a federal policy update by NCIA CEO Aaron Smith. These elements collectively reinforced the necessity of actively safeguarding our industry in 2023. For further details about this event, please read more here, and watch Governor Polis’ address here.
In addition to our dynamic schedule of Industry Socials and Cannabis Caucuses, we launched satellite workshops tailored exclusively to social equity applicants and operators in four cities: Chicago, Detroit, Jersey City, and New York. These workshops, part of NCIA’s Diversity, Equity, & Inclusion program, aimed to provide an immersive learning and networking experience, empowering social equity applicants and operators to strengthen their position in the industry. To delve deeper into these workshops, we invite you to learn more here.
While we celebrate the successful return of these events, the true measure of their impact lies in the testimonials of those who attended. We invite you to read firsthand accounts from the individuals who participated and benefited from connecting with fellow professionals in the cannabis industry.
“I had great conversations with many people from all different areas of the cannabis industry; from seed (or tissue cloning in this case) to sale as they say.”
“I was able to learn more about the industry from the perspective of operators that are at different stages of the cannabis supply chain. Thank you for an amazing event!”
“I made a connection for our product in regular agriculture in addition to cannabis. The quality of the people and the connections made was top tier.”
“Everyone was actively networking which was great. Great venue, food, service and lots of attendees. Best event I have been to post-Covid.”
“I was able to meet new contacts and reconnect with people I haven’t seen in awhile. These events always help me put things in perspective and realize collectively we share similar ups and downs. It’s also important to learn what’s on the horizon for the industry and that our work is pushing the movement forward.”
“I reconnected with multiple folks I hadn’t seen in a while and met many new contacts I’m looking forward to building relationships with. Industry knowledge is so helpful in my line of work and I appreciate the talks.”
Lastly, we culminated our event schedule with the 11th Annual Cannabis Industry Lobby Days in D.C. Over 100 members joined us for this pivotal event, where our dedicated Government Relations team effectively organized attendees into 20+ teams, engaging in over 150 meetings with congressional offices over three days. Through the generous financial support of TILT Holdings and Evergreen Market, NCIA sponsored the travel expenses for four Social Equity advocates, ensuring diverse voices were represented within our delegation.
In addition to the many congressional meetings that took place, our staff organized a briefing for Senate staff on the SAFE Banking Act. Esteemed industry leaders, including Chris Jackson, NCIA Board Vice-Chair & Michigan-based cannabis operator and social equity leader, Monica Gray-Fong, NCIA Board Member & COO of California-based licensed cannabis distribution and delivery service, Nice Guys Inc., Kirk Fredrickson, CEO of 2Accept, a leading payment processor serving the cannabis industry, and Adam Crabtree, Founder & CEO of NCS Analytics, a prominent data analysis firm serving cannabis regulators, shared their experience and expertise during this informative session. You can view the entire briefing here.
During our time in D.C., we also had the distinct honor of recognizing Khurshid Khoja, Principal of Greenbridge Corporate Counsel, with the prestigious inaugural Steve Fox Excellence in Advocacy Award. This award recognizes Khurshid’s unwavering dedication to federal policy reform, and we extend our heartfelt appreciation for his significant contributions throughout the years. Congratulations, Khurshid, on this well-deserved recognition!
Looking ahead, we encourage you to mark your calendars for the upcoming 12th Annual Cannabis Industry Lobby Days, scheduled to take place from May 14-16, 2024. Join us as we continue to drive the cannabis industry forward through collaboration, advocacy, and a shared vision for a prosperous future.
Our events would not have been possible without the generous support of our 20+ sponsoring member businesses. We extend our deepest gratitude to these companies for their unwavering commitment to our cause, which played a vital role in the success of these events:
Are you seeking unparalleled B2B connections within the cannabis industry and fostering strong ties with the NCIA community? Look no further. Take the next step and contact us today to explore sponsorship opportunities with us.
As we continue to champion a thriving and inclusive cannabis industry, sign up for our newsletters to stay tuned for future updates and opportunities. Together, we will pave the way for lasting success. We look forward to seeing you at the next event!
The Equity Workshop Tour: Impactful Conversations with Regulators
by Mike Lomuto, NCIA’s DEI Manager
Part 1 of a Blog Series Recapping the Equity Workshop Tour – Spring 2023
I believe that the cannabis industry needs intimate and dynamic events, particularly if we are to build in an equitable and diverse fashion, and that’s why I embarked on the Equity Workshop Tour, navigating countless obstacles along the way.
After completing the four workshops that comprised the Tour, that belief has been validated, with several additional takeaways.
As part of each workshop, we conducted panel discussions with representatives of state and city regulatory agencies and advocacy organizations.
These conversations were especially illuminating for me, as I got to witness firsthand the ways in which regulators and advocates have been working together in each of these states, with the same mission of equity front and center.
NEW JERSEY
In New Jersey, the Cannabis Regulatory Commission (CRC) recognizes the need for input from stakeholders, and our intimate panel discussion, with a high level of audience participation, offered exactly that.
Hearing the “origin stories” of CRC Vice Chair Samuel Delgado and CRC Commissioner Charles Barker is a large part of why I believe we have a chance at an equitable industry. Because at the end of the day, we have solid allies within the halls of government, who share our mission.
I was very encouraged to learn about a state that appears to be outpacing other states in the drive to stand up an equitable industry. There does, however, appear to be a lot of work that needs to be done on the municipal level. This is where advocacy organizations, like NCIA, and stakeholders must work together to educate local regulators in order for expeditious and equitable permitting processes to unfold. I believe that NCIA’s committees can provide support in this area, as we have previously, by providing written or verbal testimony on specific matters that municipalities are still unaware of.
It was also illuminating to understand the role that service-disabled veterans play in the industry, as pointed out by Osbert Orduna (of NHCC and SDVICA). Nichelle Santos (M4MM) also contributed valuable insights to this panel discussion.
ILLINOIS
Illinois is a state that has drawn the ire of many. While the legislation was the first to include equitable provisions, the implementation has been challenging, and many people have lost a lot.
That said, as opposed to the nascent and scattered approach of advocacy I witnessed here a few years back, it’s very encouraging to see advocacy organizations working together on the same page, developing a collaborative working relationship with one another and the regulators. A big shoutout to Cannabis Equity Illinois Coalition (CEIC) for their role in this. (check out this recent Catalyst Conversation to learn more about their work)
It seems that a consolidation of Cannabis oversight into a singular agency with its own power to regulate the industry is needed. There are currently 17 agencies with a role in Illinois’ industry, and the state’s Cannabis Regulatory Oversight Officer serves as a limited version of a centralized agency, without the power to enact the implementations everyone seems to know are needed.
I encourage you to tap in with CEIC, SEEN, and ULCIA to learn more about how you can help with the priorities they’ve identified are necessary to create an equitable industry in Illinois.
NEW YORK
In New York, there is a need for more transparency, which it seems the Office of Cannabis Management recognizes and is headed in that direction. I’ve said this before, and I’ll say it here. OCM has a difficult job, balancing the directives from those above it, with the needs of the stakeholders. As Tabatha Robinson, OCM’s Deputy Director for Economic Development Policy and Research, pointed out during the panel, OCM is made up of several dedicated people who go above and beyond because they believe in creating an equitable industry. As advocates, our challenge lies in balancing the above understanding while also ensuring that the government is held accountable for its promises
Shanduke McPhatter, a CAURD licensee who represented the NY CAURD Coalition on the panel, said it best when he advocated for greater transparency in the process. He reminded us that patience is not the issue for those who have served time, as they’ve learned patience the hard way already. But while being patient, there is a need for greater transparency from the state. A large part of this has to do with the major lack of transparency from the Dormitory Authority of the State of NY (DASNY), which also impacts OCM and their ability to operate properly. It seems like it’s time for Ruben McDaniels and DASNY to stop playing games, but I’m not stating anything that everyone in New York doesn’t already know.
Lastly, I appreciated Dr Adrian Adams (M4MM) and Scheril Murray Powell (JUSTUS) pointing out the importance of the industry to work together to find creative solutions. These types of discussions are a great starting point, but it’s how we collaborate on action items moving forward that will define our path forward.
MICHIGAN
In Detroit, our panel included NCIA Board Member Rebecca Colett, who has founded the Detroit Cannabis Project (DCP) as a mentorship group to support cannapreneurs on their journey. Thus far, that journey has mostly consisted of staying relevant and advocating properly while the myriad of municipal challenges have unfolded.
What stood out to me was the way in which Kim James and the City of Detroit’s Homegrown Cannabis Office have partnered with DCP, recognizing the need to support mentorship from the municipal level. As Detroit comes online, and as capital markets open back up to fund these new cannapreneurs, the participants in Detroit’s cannabis program will have a leg up on where they would’ve been without this type of holistic support.
Another interesting topic of conversation was led by Scheril Murray Powell, who provided an update on the work to support Legacy operators being conducted by ASTM and the JUSTUS Foundation. This includes advocating for a universal definition of “Legacy operator”, of which NCIA’s DEI Program is very supportive:
“An individual who: 1) Commercially for the majority of their income, or sacramentally, or ceremonially distributed cannabis; 2) Outside of the Legal Framework; 3) During the period of Prohibition; 4) For a minimum of 5 years before legalization.”
As part of the beginning of what will hopefully be a robust dialogue on this topic, NCIA Cultivation Committee member Joseph Smith pointed out the potential challenges for adopting such a standard in the state of Michigan, which had a caregiver program for a decade or so prior to legalization.
I can’t wait to get back out to Michigan to see this constantly-evolving program.
WHAT IT ALL MEANS
My biggest takeaway is that no matter how many of these types of conversations we have, we need to continue having them and to continue pushing the ball forward. Cannabis is going to take several years to stand up properly, and equitably, so dialogue between advocates, business owners, and regulators is invaluable at this stage in the game.
And the more cannabis entrepreneurs realize the importance of advocacy at this early stage, the more an equitable industry is possible.
My hope is that these panels, in the setting of the workshops, provide a forum for the right type of conversations, as well as inspiration for business owners as to how to advocate for themselves and others in a successful manner.
Equity Member Spotlight – Back to D.C. for Lobby Days
by Mike Lomuto, DEI Manager
For the second time in nine months, NCIA’s DEI Program organized a DEI Delegation as part of our annual Lobby Days on Capitol Hill.
The DEI Delegation consists of some of the foremost advocates for Social Equity from across the country. Their leadership within their state and local communities, as well as within NCIA’s Committee structure, greatly bolsters the lobbying efforts of our organization as a whole, all year round.
Our Delegates weighed in on the organization’s talking points ahead of the event, and then provided an important perspective on the Hill. As part of NCIA’s lobbying on behalf of the industry, our members focused on SAFE Banking, 280E Reform, Comprehensive Legalization, Veterans Affairs, and more.
Thanks to TILT Holdings and Evergreen Market for sponsoring this very important initiative.
As stakeholders in the cannabis industry, it is important that we learn how to also properly advocate for ourselves and for others from diverse communities around the country.
We’ve already begun raising funds for next year’s DEI Delegation. If you want to ensure the return of this initiative, while also receiving year-round recognition, reach out to mikelomuto@thecannabisindustry.org
2023’s Lobby Days DEI Delegation:
Raina Jackson, Purple Raina; DEI Committee Organizer and Policy & Regs Subcommittee Chair Dr. Adrian Adams, CGO at Northeast Extracts; NCIA’s DEI Committee; M4MM’s NY State Director Vanessa Valdovinos, HUSH; NCIA’s Marketing & Advertising Committee Organizer Anthony Jenkins, Next Level Edibles; NCIA’s Cannabis Manufacturing Committee
This is your first year as a Delegate. Why was it important to you to participate?
Vanessa:
Participating in Lobby Days allowed me to contribute my personal experiences, expertise, and insights as someone running a small business in a highly regulated market. I wanted to have a voice in shaping legislation related to crucial topics that are important to me like providing an equitable pathway in the cannabis space. By being present at Lobby Days, I could truly contribute to the development of policies that would essentially help shape policies that promote a safe, inclusive, and thriving cannabis industry for the benefit of all.
You were a member of last year’s Delegation. Tell us why you chose to return this year, and how your experience last year influenced your game plan for this year.
Dr. Adrian:
Last year was more about figuring out who in each office was the one driving the cannabis policy car, if you will, meeting them where they were, and schooling them up. This year we did a better job as a small group in each office using each of our bios to tell an impactful story regarding the impact of SAFE Banking and 280E, and tying it to what some offices have done in their home district.
Raina:
It was a wonderful experience to participate in Lobby Days 2023, especially after attending last September for the first time and learning so much. I appreciate that this year’s meetings were extended over two days, following in-person training at the glorious Michael Best Strategies office penthouse.
Like last year, I found that most Congressional staffers are quite open-minded and seek to understand our points of view to correctly convey them to the lawmakers they serve. I learned that we don’t have to agree on every single detail to come to a compromise, especially since the People have spoken and demand some form of safe cannabis access and decriminalization nationwide. Bipartisan efforts must match public opinion.
What were the main takeaways from your experience on Capitol Hill?
Raina:
Most staffers were not familiar with 280E and how it disproportionately burdens cannabis businesses with paying upwards of 50 to 70% of revenue towards federal, state, and local taxes without the tax write-offs other industries enjoy at a 30% standard rate.The new proposed Small Business Tax Equity Act eliminating 280E for cannabis businesses would greatly improve the economic landscape, while still representing a net gain for the national economy. This credit would allow more businesses to stay afloat and continue to pay taxes at a more equitable rate over a longer period. Everybody wins!
Dr. Adrian:
SAFE Banking could potentially happen sooner than I thought if it originates from the Senate side.
Anthony:
My main experience in Capitol Hill taught me that with planning and footwork, it is possible to reach elected officials, even highly ranked officials like US Senators. And from the feedback we received from both Democrats and Republicans, most representatives are on board with all 3 (hemp updates, 280e reform, SAFE Banking).
Vanessa:
One of my main takeaways from this experience was the immense value of hearing personal stories that shed light on the diverse perspectives within a highly regulated market. By listening to the struggles and triumphs shared by individuals, I gained a deeper understanding of the challenges we all face on a day-to-day basis. I also realized that by sharing our own truths and insights, we can provide invaluable perspectives that others can learn from. Personal stories have the ability to bridge gaps in understanding and create empathy, which are crucial for the progress of any industry.
Mike:
An important component of Lobby Days is the in-person training session. This year, Reggie Babin provided some great insights. As the former Chief Counsel to Senator Charles Schumer, who worked directly on the Cannabis Administration and Opportunity Act, his words resonated throughout the room and our lobbying efforts over the ensuing two days. One thing that stuck with me is when Reggie compared the ten years it had just taken to get reform through on a non-cannabis issue. That bill had strong sentimental support and near-unanimous public opinion on its side. Given that context, it made it clear that we’re on schedule for SAFE Banking. It also means we need to be pushing on other legislation that may likewise take many years to push through.
He also pointed out how any one conversation that we have could be the one that flips the vote that is the final domino on passing legislation. That’s why our stories are so important.
What did you learn from your experience that you’d like others to know?
Raina:
As NCIA DEI Delegates we must control our own narratives and help illuminate the state of our industry by putting names and faces to our stories and sharing our triumphs and pain points. I’m glad we are revisiting the SAFE Banking Bill, which is vital to public safety and economic growth along the supply chain. It is paramount that the bill is passed in any version initially, with room for amendments to weave PLUS equity initiatives into the fabric.
Dr. Adrian:
The circle of leaders at the top of the cannabis industry is relatively small and many of those folks attend the lobby days of groups like M4MM and NCIA. Your attendance is good for business as well as for the creation of informed public policy.
Vanessa:
Another important lesson I learned was the significance of building relationships. Engaging with lawmakers directly and sharing my own personal experiences and insights was a driving force for me. It was inspiring to witness their genuine interest in hearing directly from industry professionals. Establishing meaningful connections with policymakers is key so that our industry is properly understood and represented.
Anthony:
I learned that an impassioned personal message goes a lot further than you think. Which is why we need you next year. Because we need our officials to hear your story, and how these issues affect you, your business, and your family daily.
What’s something you loved about visiting D.C. outside of the Lobby Days activities?
Vanessa:
It was the opportunity to connect with my fellow members on a deeper level that truly resonated with me. During our time together, I had the privilege of hearing their unique personal stories and gaining a deeper understanding of what had motivated them to participate in Lobby Days. These stories were inspiring and just reminded me of the incredible passion and dedication within our community.
The personal stories, the camaraderie, and the bonds we formed have created a network of support and friendship that extends far beyond the event itself. It was a truly special aspect of the trip that I will cherish for years to come.
Dr. Adrian:
Just seeing the unique D.C. cannabis market in action with entrepreneurs like Barry Doyle/Embers and others holding unique events. As Anthony Jenkins from San Francisco put it, “it was like seeing the future of cannabis in the U.S.”
Raina:
I appreciated that this year my group had time between and after meetings to visit D.C. landmarks like the Botanical Garden, the Dr. Martin Luther King Memorial, and the Washington Monument. I even extended my stay to experience the phenomenal National Museum of African American History and Culture.
Anthony:
The botanical garden was dope!
P.S. Something else I’d like to note is that in the weeks leading up to Lobby Days, I embarked on the Equity Workshop Tour, a series of workshops held in four cities, bringing together industry stakeholders, leaders, advocates, and regulators. This experience was highly informative for me to hear all these stories prior to our lobbying work in D.C. It was also great to see some of the same faces that I had seen across the Tour again in D.C!
Committee Blog: How Can Retailers Improve the Customer Experience?
by NCIA’s Retail Committee
Contributing Authors – Ace Castillo, Brian Anderson, Tony Trinh, Pete Longo, Nicole Rivers, John Kent, Larina Scofield, and Brian Hart
In a competitive market the customer experience is one of the biggest factors in the success of a company. This begs the question as to how to improve the customer experience? In one simple word, service. But what can retailers do to provide service to the customers? After consulting several members within the NCIA retail committee, here are a few takeaways.
Education
This applies to both the customer and the employee. While there are certainly customer-facing employees who have strong knowledge and have made a great impression on customers, a common trend is there is a lack of consistency with employee knowledge and communicating information. One can go into a retail location and ask the same question to four budtenders and get five different opinions. This is often a reflection of the lack of standardized and consistent training provided by management. There are certainly challenges regarding the high turnover of employees in the cannabis industry however management needs to find solutions to ensure every employee is trained in the same way so there is a standard of cannabis knowledge. Once that standard is in place, customer-facing employees can provide consistent and well-informed information to the customer. Examples include communicating the properties of the plant like that of the different cannabinoids and terpenes, their effects, and which cannabis products can maximize the desired effect of the customer.
Engagement
Engaging customers and the community improves the overall customer experience. Often when applying for a license a retail location has a community engagement plan that looks promising but doesn’t get executed. It is understandable there are a litany of tasks needed to be performed but if a retail location wants to improve the customer experience, engage the customer and community. Host events where a retail location can get to know the customer and community and provide value in these events through education. Engage community leaders and people who have concerns about a retail location in their area. This does not mean people will change their opinions however if they feel they are being listened to and have respectful communication then the overall reputation of a business will be improved upon. A good business reputation will improve interactions with customers. Also, have retail employees engage customers, this goes back to sharing information about the plants and products.
Process Development
Evaluate and improve the customer experience. If one trains employees and engages customers, leverage these experiences to improve the process. One conversation can provide valuable insight as to how to improve service. Another conversation may provide insight as to what products customers find value in or importantly detract value. It could be that too many customers find the explanations provided by trained retail staff are too detailed or too vague. If that is the case, make the appropriate changes to improve the process. Customers will notice when changes are made for their benefit and this strengthens their desire to return to the retail location.
Data Analytics
Observe quantifiable patterns and this doesn’t need to be over complicated. What are customer flow-through rates? Is there a time of day where there is an influx of customers and could there be a correlation as to what they are buying? Is there a time of day that many customers come in for a specific item and through this observation can changes be made to make the process easier and the overall experience better? It could be that customers at a specific location prefer a specific brand or type of product and by having the right levels of inventory a retail location won’t run out of products and disappoint the customer. Conversely if there are products that are not selling and could potentially serve as an unwanted distraction to customers, it could be possible the customer experience would be improved upon by removing the product. Reviewing data about customers does not need to be intrusive and can be viewed at a high level.
Company Values
Does a retailer have a list of values, are they authentic, and is it followed? Keeping to company values provides direction and commonality between the company and the customer. Is there a retailer that genuinely cares about kindness and is it practiced throughout the company? If the owner of the company treats a manager with kindness and the manager treats customer-facing employees with kindness, there is a greater likelihood the customer-facing employee will treat the customer with kindness. Whatever the values of the company are, they need to be announced and if practiced, customers will see it in everyday interactions and that can make the difference from good to great.
As one may notice, the aforementioned tips are not revolutionary or the first of their kind. Instead, these are ideas that can be practiced daily and make small but incremental improvements. We encourage you to try these tips out and through consistency over time, these incremental improvements will compound and improve the customer experience.
Brian Hart is a consultant and entrepreneur in the cannabis industry and has both academic and practical experience within the cannabis industry. Having written his master thesis using a neoclassical economics model to conduct an industrial analysis of the Colorado Cannabis industry, Brian grew and sold cannabis and has consulted on the industry for several years nationally as well as internationally.
NCIA Members United in D.C. at Lobby Days! Join Us Next Year!
Photo By CannabisCamera.com
by Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations
Essentially every industry and association with a presence in Washington, D.C. hosts their own lobby days, advocacy days, or fly-ins – whatever you want to call them – where their members come to the Capitol to lobby Congress on their respective industry and legislative issues.
Thanks to NCIA, the cannabis industry is no different. In fact, just a few weeks ago, more than 100 members of the National Cannabis Industry Association (NCIA) descended upon Capitol Hill for NCIA’s 11th Annual Cannabis Industry Association Lobby Days. Lobby Days are an opportunity to advocate for our industry and tell Capitol Hill staff about the real, lived, on-the-ground experiences that cannabis professionals experience daily.
Planning 150+ meetings over the course of two days with 100+ attendees and 21 teams is about as easy as it sounds. That’s not to mention the multiple events, a congressional briefing, and training sessions! But that’s exactly what the NCIA team does for our members every spring. At lobby days, NCIA members gather to amplify our message and make their voices heard in the halls of Congress, while simultaneously forging strong relationships with the most influential leaders in the cannabis industry.
With more than 80 freshman members in Congress this session and multiple bills that have yet to be reintroduced, we wanted to focus our efforts on educating new members about the issues the cannabis industry – and the people that comprise it – face regularly. Many of these members and their staff have never heard of 280E, haven’t had to vote on SAFE Banking (yet!), and are on the fence about legalization, while others have never even talked with a cannabis professional. As a result, it was incredibly important to us that we reach out to those offices and provide them with the resources they need to best inform their position on the various policy areas that cannabis touches.
After arriving in D.C., attendees were greeted with a tropical vibe at our welcome reception at Tiki TnT & Potomac Distilling Company. This gave teams an opportunity to meet up ahead of meetings and mingle with other professionals who made the trip. The next day, we all gathered bright and (very) early for our mandatory breakfast training ahead of shuttling to the Capitol grounds for our group photo. At the training, attendees were able to grab a quick bite to eat, drink some coffee, get together with their teams, and get the final “do’s and don’ts” for their meetings. After our training and group photo, our teams split off for their meetings and reconvened at the end of the day for our stunning closing reception. There, attendees debriefed after an incredibly productive day and unwound with beautiful views, some drinks, and a dreamy jazz band. On the final day, attendees began their morning with a Senate briefing focused on SAFE Banking, where they rubbed elbows with congressional staff. Post-briefing, teams broke off for their final meetings, and just like that, lobby days 2023 was a wrap!
It’s no secret that the cannabis industry is undergoing significant struggles and we’re feeling that squeeze in Washington, D.C. Many companies have downsized and laid off government relations professionals, while others continue to just hope that Congress will pass reform magically. The truth is that lobbying, advocating, and being active in the legislative process are critical to moving our industry forward. Stay tuned for other citizen lobbying opportunities, and take it to the next level by sponsoring NCIA’s 12th Annual Cannabis Industry Lobby Days in 2024!
The legal cannabis industry is growing at an unprecedented rate, with more and more states legalizing its use for medical and recreational purposes. However, despite this progress, cannabis businesses face a major obstacle: Section 280E of the Internal Revenue Code. This provision is a significant burden on cannabis businesses, limiting their ability to take deductions for basic expenses like rent, utilities, and employee salaries. The result is a higher tax burden and reduced profitability, putting cannabis businesses at a disadvantage compared to other industries.
Section 280E was introduced in the 1980s as a way to prevent drug dealers from taking business deductions on their tax returns. At the time, the provision was aimed primarily at illegal drug dealers. However, when it comes to cannabis businesses, Section 280E has become a significant hurdle. The problem is that while cannabis is legal for medical or recreational use in many states, it remains a Schedule I drug at the federal level. This means that cannabis businesses are still subject to the same limitations as illegal drug dealers when it comes to tax deductions.
The impact of Section 280E on cannabis businesses is significant. Without the ability to deduct basic expenses, cannabis businesses face higher tax burdens and reduced profitability. This makes it difficult for them to reinvest in their operations and grow their businesses. In addition, the provision makes it challenging for cannabis businesses to obtain financing, as many traditional lenders are hesitant to work with them due to the regulatory environment and the industry’s status as a Schedule I drug.
The insurance industry plays a vital role in supporting the cannabis industry. With the help of insurance professionals, cannabis businesses can protect their assets, mitigate risks, and navigate the complex regulatory environment. However, insurance providers also face challenges in the cannabis industry due to the regulatory environment and the industry’s status as a Schedule I drug. For example, some insurance companies are hesitant to provide coverage to cannabis businesses due to concerns about federal prosecution.
Despite these challenges, there are insurance providers that specialize in the cannabis industry and offer tailored solutions to cannabis businesses. By working with these providers, cannabis businesses can protect their assets and minimize risks, while also demonstrating to potential investors and lenders that they are taking the necessary steps to manage their risks.
In addition to the insurance industry, there are other steps that policymakers can take to support the cannabis industry. Revising Section 280E is one of the most critical steps that can be taken. By allowing cannabis businesses to take more deductions on their tax returns, policymakers can help level the playing field and create a more equitable regulatory environment for the industry. This would enable cannabis businesses to reinvest in their operations, grow their businesses, and create jobs.
One could say that 280E could be equally or more importantly about de-scheduling cannabis than about changing a tax code. This a vital step that policymakers can take to remove cannabis from the list of Schedule I drugs. The current classification of cannabis as a Schedule I drug is outdated and based on outdated stereotypes. This is also contributing to a massive roadblock with the potential to destroy many businesses in the legal market, which only helps the illicit market thrive. Removing it from the list of Schedule I drugs would enable researchers to study cannabis more effectively and provide a clearer understanding of its medical benefits and potential risks. It would also allow cannabis businesses to operate more freely and obtain financing from traditional lenders.
Creating a more supportive regulatory environment for the cannabis industry is critical to its success.
With the help of insurance professionals, tailored solutions, and supportive policymakers, the cannabis industry can continue to grow and contribute to the economy. Revising Section 280E and removing cannabis from the list of Schedule I drugs are essential steps that can be taken to support this critical industry.
Valerie has over 16 years of experience in the insurance industry with specialized niches in cannabis, real estate, and community associations. With experience working for companies such as McDermott Costa Insurance Brokers, AmWINS Group, Inc., Commercial Coverage Ins. Agency, and Colemont Insurance Brokers, Valerie has developed a love of helping clients navigate the world of insurance by creating an understanding of the value behind insuring their business. In addition to her professional work, Valerie serves as the CREW East Bay Chair on the Programs Committee, is a National Cannabis Bar Association member, NCIA member, and volunteers in East Bay communities with Richmond Grows Seed Lending Library to show people how to save vegetable seeds and grow their own food. In 2021, Valerie received the 2021 and 2022 CREW East Bay Connections Award and was a nominee for the Elevate 2021 Industry Impact award.
With a drive and passion for helping people, Valerie has gone back to her long-standing roots in the plant medicine industry and uses her unique lens of growing up surrounded by cultivators and sellers to validate her client’s business needs. Valerie strives to break the mold of how insurance and cannabis has partnered together to give back to the community she grew up in. With a strong insurance background and an in-depth knowledge of the cannabis industry, Valerie has been a trusted advisor for over 70 cannabis clients.
For more information on Liberty’s National Cannabis Practice Group, please reach out toValerie Taylor, Vice President (National Cannabis Practice Leader), The Liberty Company Insurance Brokers.
This site uses cookies. By using this site or closing this notice, you agree to the use of cookies and our privacy policy.
by Mike Lomuto, DEI Manager
2023’s Lobby Days DEI Delegation:
Raina:
by NCIA’s Retail Committee
Valerie Taylor, Producer, Vice President and National Cannabis Practice Leader,