Meet The Team: Rob Kellogg – NCIA’s Chief Operations Officer
My journey into the cannabis industry did not follow the typical route and actually did not begin long ago. In February, just over five months ago, I was hired to be the COO at NCIA. Other than this whole COVID-19 thing, I’m really enjoying working with the talented and committed staff here at NCIA, meeting our members (mostly virtually), and generally learning about the intricacies of the cannabis industry.
After graduating from college in 1995 where I majored in philosophy and government (and spent a semester abroad in India during my junior year), I returned home to San Francisco to kickstart the marketing presence on the left coast for Nantucket Nectars, an all-natural juice company then ranked as the 13th fastest-growing private company in the U.S. It was a great experience for a recent college grad as I got to drive around in a large purple Winnebago with our logo (“We’re Juice Guys”) plastered down the side. For more than a year, I traveled up and down the coast doing product sampling and promotional events from San Diego to Seattle.
I work out of the Denver office. I moved to Colorado thirteen years ago, after spending eight years working in progressive politics and public policy in Washington D.C. While in D.C, I was a consultant to the AFL-CIO and managing director at the corporate governance firm Institutional Shareholder Services Inc. In 2007, I left to co-found a start-up providing ESG risk analysis of foreign public companies to institutional investors. We had a great business model and were about to take off, and then the 2008 financial crisis hit and that really impacted our clients’ pocketbook. I ended up exiting that venture in 2009.
My wife Kate and I have an adopted son from India, and in 2017 our family spent a year-long sabbatical in Kerala (southern India) so our son Milan could become more acquainted with his birth culture. We lived 20 minutes from the Arabian Sea and
spent several days a week surfing Kovalam Beach (and dodging jellyfish). Over Christmas and New Year’s that year, we were lucky enough to spend a few days on a small locally governed atoll in the Maldives, a magical place where we swam with dolphins and sea turtles with the Call to Mecca in the background.
Just prior to joining NCIA, I was the Executive Director of Social Venture Partners Denver, a partnership of engaged philanthropists bridging the for-profit and nonprofit sectors to elevate the impact of social mission organizations in Metro Denver. I have two graduate degrees in management and I’m mildly obsessed with organizational behavior and how to optimize performance in the modern workplace.
One of my professional passions involves social entrepreneurship. In 2016, I founded the Sathi Fund for Social Innovators, a volunteer nonprofit that provides seed grants and mentorship to aspiring grassroots social innovators in Africa and Asia. I’m also a preceptor at the Watson Institute in Boulder where I teach a class called “Transformative Entrepreneurship” in their 5-month residency incubator to 30 or so participants from around the world each semester. In the class, I take scholars through the process of developing their venture, including lean canvas methodology, prototyping, customer discovery, and fundraising. I’ve served as an investor, board member, or advisor to several ventures, including RecycleUpGhana!, Canned Goods, Flyer Connect, Nile Farms, and Achroma.
I enjoy swimming, hiking, basketball, and travel, having lived or traveled to more than thirty countries. I’ve been practicing meditation regularly for the past fifteen years, with a recent emphasis on Zen. I try to do at least one 3-day retreat at the Crestone Mountain Zen Center every year.
I’m excited to be working for NCIA representing business-members in one of the fastest-growing, most innovative, and resilient industries in America. I can’t wait to see where the industry goes from here and look forward to helping our members and staff thrive. I look forward to hopefully meeting you in the weeks and months ahead at one of our events.
Announcing NCIA’s Equity Scholarship Program
As I’m sure it has been for so many of you, the last month has been a time of deep reflection for all of us here at NCIA.
The national awakening to horrific police violence and the systemic racism that black and brown communities have endured for centuries is long overdue.
Marijuana prohibition is inextricably linked to a history of racism going back to the days before Harry Anslinger, the first commissioner of the U.S. Bureau of Narcotics who said, “reefer makes darkies think they’re as good as white men.”
This history, while vile and disgusting, proves that our industry is also inherently tied to the politics of race. This is something that we must come to terms with if we are to build an industry that is not only inclusive but also contributes to the effort to repair the damage prohibition has inflicted upon marginalized communities under prohibition.
It bears repeating that while people of different races consume cannabis at roughly the same levels, Black Americans are nearly four times as likely to be arrested for marijuana possession. These enforcement disparities continue to exist, even in states that have legalized cannabis for adult use.
Unfortunately, too many people from these same communities have found their access to the emerging legal cannabis industry restricted, from discriminatory laws that refused licenses to those with past nonviolent drug convictions, to inexcusably high licensing fees and a lack of access to capital.
To that end, we recognize that although NCIA mostly represents small and medium-sized businesses and has done some good as it relates to diversity, equity, and inclusion over the years — historically, a lack of affordable access for equity operators has led to a structural inequity at NCIA that we are committed to change.
As a trade association, membership unlocks exclusive member benefits that help give business owners and employees a leg up on their competition. We offer these benefits to help our members and so that we can fund our national advocacy efforts to end the destructive policies of marijuana prohibition.
Some of these benefits include eligibility to serve on our member-led committees, speak at our trade shows and webinars, submit content to our Industry Insights blog, and serve on our board of directors, as well as participate in exclusive networking events and opportunities.
In order to do our part to help level the playing field for equity operators, and to foster greater diversity within the NCIA community, we’re pleased to announce the launch of our Equity Scholarship Program, available to all equity licensees and qualified applicants.
Discounts on all NCIA digital sponsorship products
Access to exclusive monthly mentor meetings
Equity applicants and license holders are encouraged to apply for this program online today.
NCIA will also be launching an Opportunity Fund that we will work to raise money for in order to help provide further opportunities to equity operators and expand the benefits of the program. Already, our Business Development team has been enrolling new equity members from California to Massachusetts. While NCIA’s larger Diversity, Equity, & Inclusion initiative is under development for launch by Fall 2020, new members are being matched with internal resources by our DEI Manager Tahir Johnson.
We recognize that offering only words is insufficient during this historic moment.
We hope that this program will lead to systemic change in our organization and industry by providing an opportunity and a platform for equity businesses to engage with the broader industry so that they can feel empowered to grow their business like every other American entrepreneur.
If you know someone who is a social equity applicant or license holder, please send this link to have them apply. If you aren’t a social equity operator but interested in helping to support this program, please fill out this form and our team will reach out with more information about how you can help.
Myself, our staff, and board of directors couldn’t be more excited about this program and our organization’s renewed commitment to a future where our industry reflects the diversity of our nation and has helped lift up communities that have beared the brunt of decades of the oppressive regime of marijuana prohibition.
For justice, Aaron Smith Co-founder & CEO National Cannabis Industry Association
Our world in 2020 looks vastly different from years past, and we have been ripped open and exposed as a human population, with the birth of COVID-19, the protests and riots resulting from brutality, and the belief that our systems are flawed and need to change at the root level. We are on the precipice of a social revolution and it is time to recognize and change the social paradigms that have shaped and dictated our lives on a personal level. We must also begin the hard work of re-shaping and shifting the practices and policies we have put in place in our work environments, that have disproportionately impacted underrepresented populations. Recent legislation has created the structure for us to begin to edit our current practices and to better support these populations; to aid change in our businesses and create a more equitable place for all employees to work. But it is not always easy as a business owner to understand what that means in our daily lives or to adopt the new practices that will support this evolution.
To begin to understand this, we must first look at where the first missed step begins. We need to break down the different employment practices and approaches we’ve built and begin to analyze the data to understand what prevents us from being who and where we want to be as an organization and we must find the insight that will help us correct it.
When we think about diversity and inclusion in the workplace, we may automatically be drawn to our hiring philosophies and our marketing strategies. Diversity has long been rooted in our recruitment and hiring processes, but we often miss the mark when that’s as far as we dare to look. It’s not just about hiring a certain percentage of a particular demographic or providing recruitment materials that represent the diversity we seek. We must also understand the unconscious bias that lives within all of us and its potential impact on the hiring and employment choices we make. It’s important for businesses to understand not only the laws that help govern equal opportunity but also to implement practices that support the growth of diversity and inclusion within the workplace.
What does your company do to ensure hiring practices are fair?
Have you looked at the unconscious biases that may live within your organization and impact the candidates you seek and ultimately hire?
Do you know the recent legislative changes that impact your ability to ask questions about criminal convictions and salary history, at the time of application or during the interview process?
Do you understand the impacts of background checks and the responsibility of the business to prove the correlation between a conviction and the type of damage it may impose on the business?
These questions tip the iceberg and only begin to open the pathways to investigate what other areas of your workplace may unknowingly rebuke the diversity initiatives you are chasing. Hiring is step one; from there you must identify and foster inclusion and equity in the workplace. In order for a person to feel included, and to experience equality, they must first believe they have the same opportunity to succeed; they must know they are paid fairly and that they have the power to speak up and voice their opinions safely. They must know they have the ability to develop within the organization, to access training and mentorship, allowing them to earn promotions and recognition. When every person in our workplace can recognize and acknowledge equal opportunity in all employment practices, we can begin to say we are winning the battle. Only then have we managed to create an environment of equitability.
It’s important as business owners and as leaders that we take a deep dive into the employment practices we have established and identified the areas where we fall short, where we fail to see diversity thriving.
As NCIA and the cannabis industry work hard to promote social equity for all and to be a leader for change, it’s important that cannabis businesses also look internally at employment practices and how they can impart change, building equality in practice and in policy.
As the founding partner of Eolàs HR, I’ve watched and worked alongside brilliant people who wanted to make a difference but didn’t know how, and who wanted to do the right thing but didn’t know where to start. It has long been a passion of mine to ensure employees of all races, ages, genders, religious beliefs, nationalities, etc. feel they have a workplace where they can thrive, and that businesses and business owners understand how to put practices in place that support and honor that basic human need. It’s important that businesses have the resources, tools, and support needed to build smart employment practices that not only support the employee but reduce the legal risk for the business. In working together, we become part of the solution and we stand as one population united.
Erin Lemmons is passionate about helping small businesses avoid the risk of legal challenges that many companies face as they navigate the growth gap from 1 to 150 employees. She is the Founding Partner of Eolàs HR, a Denver based HR consulting firm and has worked with multiple start-up organizations, within the technology, hospitality and retail industries. Erin’s specialty is supporting employee management strategy and process. She provides the tools, resources and support businesses need to build strong employment practices and reduce legal risk.
She thrives when working with companies who are philanthropic, value innovation, and are dedicated to both environmentally sound and strategically profitable business practices.
Having graduated in 1997 from Colorado State University with a Bachelor of Science degree, Erin is also certified as a Professional in Human Resource (PHR) and is an active member of the prominent HR organization, Society for Human Resource Management (SHRM).
Meet The Team: Kaliko Castille – NCIA’s Director of Marketing
Aloha! My name is Kaliko Castille and I am the Director of Marketing here at NCIA.
My name Kaliko is Hawaiian and means “the bud that blossoms.” It was the name given to my Dad when he was still living in Hawai’i and dancing hula under a well-known kumu hula (hula teacher) named John Keolamaka’ainana Lake. As I tell people when I tell them about my name, it was written in the stars that I would end up in this industry.
Despite the convenient name, I actually didn’t always think I’d end up in cannabis. I actually wanted to go into politics. My dream job is to run presidential campaigns or serve as a top-advisor in the White House, but ever since reading The Emperor Wears No Clothes by Jack Herer, I haven’t been able to keep my mouth shut about the idiocy of marijuana prohibition.
Kaliko with Keith Stroup, founder of NORML
I was that guy in college. The one that every political science department professor knew was going to find a way to do a paper or project on legalization. The one that would stand outside the Werner University Center (at Western Oregon University) collecting signatures for legalization initiatives. The one who would organize debates on campus about legalization. The one wearing cannabis-related t-shirts. You know, that guy.
In the spring of 2010, I attended my first Global Cannabis March in Portland, OR along with some buddies of mine. It was there that I had a chance to meet Russ Belville, who I had been listening to on my local progressive talk station for a couple of years and who was serving as NORML’s Outreach Coordinator. In a lot of ways, that day changed my life. That was the day that I went from being a cannabis enthusiast who was upset by the sinister history of marijuana prohibition to someone who was going to devote my life to helping end it.
Less than a year later, I was invited into the studio where Russ recorded NORML Show Live, which was NORML’s daily live radio show and podcast. Having listened for a while, it was such a cool experience to see behind the scenes of such an impactful show. Before leaving the studio that day, I asked whether Russ could help me get an internship with NORML in D.C. but he instead tossed out the idea that I could intern for him in Portland, which sold me instantly. For the next year, I would help produce two hours of daily live radio content devoted to cannabis news and culture (as well as hosting my own weekly reggae show). I was lucky enough to interact with and book elected officials, celebrities, musicians, Olympic athletes, and presidential candidates.
That internship also opened my eyes to the world of professional cannabis consumers. A couple of months into my internship, I got the opportunity to attend my first NORML Conference which was held on 4/20 weekend in Denver. This was a mindblowing experience because I suddenly found myself hanging out with lawyers, doctors, and other professionals, smoking joints, and doing dabs (this was when it was just starting to become a thing). It was the first time that I had first-hand, verifiable proof that people of all socioeconomic backgrounds consumed cannabis. Not only would consuming cannabis not relegate you to a life of destitution, but you could actually be a responsible consumer and thrive.
Fast forward to the summer of 2012 and cannabis legalization is on the ballot in Washington, Oregon, and Colorado. Despite the fact that the I-502 and Amendment 64 campaigns managed to raise millions of dollars apiece, the legalization initiative in Oregon (Measure 80) had struggled to attract national funders due to what some saw as a “pie-in-the-sky” initiative. While at Hempfest that August, a buddy and I came up with a plan to start a political action committee to raise money independently of the campaign. In a short amount of time, we managed to raise over $10,000 in small-dollar donations from individuals across the state which allowed us to purchase banners, rally signs, and several prominent billboards in the Portland area. When we started our campaign the initiative was polling around 37%, but by the time election day rolled around, it finished with nearly 47% of the vote. Although Oregon didn’t legalize in 2012, we helped lay the foundation for a successful campaign in 2014.
After that campaign in 2012, I thought I was going to become a cannabis lobbyist but as fate would have it, I ended up opening up a dispensary in Portland, Oregon, shortly after the passage of HB3460 which legalized medical dispensaries in Oregon.
That experience was unlike anything I had been through before but it was a necessary step in my professional evolution and my journey to NCIA. In fact, our company Brightside was a member of NCIA! That experience taught me about all of the hurdles regular small businesses have to navigate, but more specifically, the special hurdles that are in place specifically for cannabis businesses. It was my first introduction into the need for banking access and 280E reform, which are the core priorities of the organization I now work for. I also found out the heartbreak that comes from having to close down due to overzealous regulations that don’t apply to any other sort of business. This has given me a unique perspective into the day to day lives of NCIA members and how despite all the “green rush” headlines we may see, this industry is anything but a get-rich-quick scheme.
Working at NCIA has been one of the greatest experiences of my life. It has allowed me to marry my experiences in cannabis activism with my experiences running a business and building brands. This year we are celebrating the #10YearsofNCIA and looking back at all of the progress our movement has made over the last decade and it is truly remarkable to see how far we’ve come.
10 years ago, I was still in college, working the drive-thru at Taco Bell in Milwaukie, OR. These days, I get up every morning with an opportunity to help shape the course of history with an incredibly dedicated and passionate group of people. If there is anything my journey can teach others, it’s that the world is run by those who show up and that if you can dream it, you can do it.
Member Blog: Cannabis Technology – Six Predictions for the Future of Cannabis Tech
by Barry Saik, Chief Executive Officer of Greenbits
Big changes are coming to the cannabis industry.
At least, that is the outlook shared by cannabis experts and lawmakers across the political spectrum. Even people who oppose federal-level legalization have to admit that the current status quo is unlikely to hold, and that popular opinion continues to sway towards the creation of a legitimate nationwide cannabis industry. Technology is playing a crucial role in connecting people inside and outside the confines of that industry.
How Cannabis Tech Will Evolve in 2020 and Beyond
There is considerable movement towards legalization in an increasing number of states. Surging demand has been keeping the cannabis industry afloat even in the worst-hit areas of the global Coronavirus pandemic. While federal-level legalization may be a long shot for the calendar year, there is good reason to believe that several new cannabis markets will open.
Many of today’s most exciting cannabis tech trends have already started gaining inertia. These movements are likely to continue picking up steam well into 2020 and beyond, even if federal-level initiatives prove unfruitful by the end of the year:
Expanded Payment Options
So far, cannabis has been a cash-only industry. Debit card transactions are gradually making their way into cannabis markets, thanks to cashless ATM solutions and a variety of online payment processors. The trend towards cashless payments is likely to continue, whether federally-backed banks support it or not.
If the federal government approves a bill that allows banks to fund and support compliant cannabis businesses, consumers will see a remarkable surge in industry development. Online ordering will likely become the new norm, powered by increasingly sophisticated e-commerce systems.
Without the support of federally backed banks, the market is likely to rely on unicorn FinTech innovators who can find ways to sidestep federal stonewalling. Compliance and cash availability will be issues, but solutions similar to those already in place will nonetheless flourish thanks to steady demand.
Better, More Accurate Strain Profiles
Right now, cannabis experts rely on a broad range of ambiguous, anecdotal data to differentiate strain profiles and the experiences they offer. There is not enough hard data to offer a quantitative comparison between any two strains.
Terpene research is going to change this. These aromatic oils are responsible for the telltale smell unique to each strain, and they have been shown to contribute to each strain’s medicinal and psychoactive effects.
The availability of hard data will transform the way consumers categorize cannabis. The goal is to go beyond the “sativa vs. indica” distinction and tell consumers exactly what to expect from each strain on an individual basis. In time, this may lead to an entirely new system of categorization for cannabis products.
A New Spotlight On Consumer Convenience
Colorado has implemented cannabis hospitality licenses as of 2020, and cannabis legislators around the country are taking a close look at the effects of the new rule. California already has a few consumption-friendly public locations, but this is very much a brand-new field where cannabis legislation – and cannabis technology – have yet to fully intersect.
On a similar note, Colorado is following California, Nevada, Oregon, and Massachusetts in allowing for cannabis delivery. These simple regulatory changes will have effects that transform consumer expectations in the industry, and the trend is towards convenience.
Expect a new brand of cannabis entrepreneur fusing technology and cannabis culture in ways never before thought possible. People are going to develop solutions that help solidify cannabis culture’s place in the local environment, capitalizing on convenience to do so.
Operational Experts Will Become Highly Sought After Cannabis Executives
There are several high-profile companies making movements towards consolidating their multi-state presence. At the moment, this is made difficult by the fact that every state has a unique set of rules for its cannabis businesses to abide by. This makes economies of scale difficult to achieve.
Operational talent is the specific kind that these large-scale organizations are going to be looking for. Until now, many multi-state operators have been run primarily by finance-oriented executives. This provides a good basis for setting up and closing acquisitions, but it will fall on newly built operational teams to build compliant solutions for multi-state organizations.
Hemp Will Open the Door to Cannabis Agriculture
The 2018 Farm Bill has led to official, federal-level recognition of hemp products. While this has not resulted in a nationwide hemp craze, the participating states are expected to bring non-psychoactive marijuana cultivation to the forefront.
So far, the USDA has approved 2020 hemp applications in Washington, Wyoming, Georgia, Iowa, and Pennsylvania. There are also fifteen tribal plans under review. Increased attention to hemp will lead to an increased dedication of tech resources to the needs of hemp farmers – which are necessarily distinct from those of psychoactive cannabis cultivators.
Market Intelligence Will Take Center Stage
A handful of ancillary industries – from cultivation-friendly real estate specialists to cannabis law firms – are expected to grow around the burgeoning industry, but market intelligence is the one most experts are excited about.
Industry leaders in every state are looking for data on cannabis users. Sales data can help inform industry players on better, more efficient ways to use limited cultivation resources. Merchandising data can help dispensaries build lasting partnerships with non-cannabis brands. A wide array of new businesses will enter the cannabis market without necessarily being growers, processors, or dispensaries.
The ability to securely turn dispensary transaction data into readymade analytic insight will prove to be one of the most valuable assets a cannabis company can have. The fact that state regulation already requires dispensaries to gather and report transaction information means that, in many cases, half of the work is already done.
2020: The Year for Cannabis Tech
Technology has historically played a crucial role in achieving civic and social progress, which then informs newer technological initiatives. Cannabis technology is already helping regulators meet the demands stipulated by voters who want safe, legal access to marijuana products, and this trend is going to continue.
Barry Saik serves as Chief Executive Officer of Greenbits, a leading cannabis retail platform that empowers more than 1,200 cannabis retail locations across 13 states with a safer and smarter way to manage day-to-day operations and maximize store performance.
Barry leads all functions of the company, which processed $3.3 billion in legal cannabis transactions in 2019. Through its platform, Greenbits offers the full suite of services that cannabis retailers need – automated state-by-state compliance, point of sale, inventory control, and personalized insights – to enable owners, managers, and budtenders to run, protect, and grow businesses with ease.
A veteran of Silicon Valley start-ups and global tech companies, Barry brings a wealth of experience in scaling and leading integrated teams building software solutions that help small businesses grow.
Barry joined Greenbits as CEO in late 2019 after founding and running the SmartLine business at GoDaddy (NYSE: GDDY), a global company that helps entrepreneurs and businesses to be successful online. Centered around providing a second phone line that connects with a smartphone, the unit grew to $8 million in revenue in the first year under Barry’s leadership.
Before GoDaddy, Barry spent 15 years working in a variety of senior roles at Intuit (NASDAQ: INTU) and its marquis tax product, TurboTax, the leading software solution for business and personal tax filings. Early in his tenure, Barry led the founding team of TurboTax Online, which 40 million people used in 2019 to pay their U.S. taxes.
As a senior leader in TurboTax’s marketing department, Barry oversaw the creation of the company’s first television ad campaign, which resulted in a 12 percent spike in sales. He also led TurboTax’s engineering team, which is charged with programming the ever-evolving federal and state tax codes into the software, a centerpiece capability of the product.
Barry graduated from Stanford University with a B.S. in mechanical engineering and an A.B. in communications. He received an M.B.A. in marketing from the UCLA Anderson School of Management.
Greenbits Company Description
As the pioneering leader of regulated retail, Greenbits is the complete cannabis retail management platform. Founded in 2014, we empower 22,000 users in 1,200 retail locations across 13 states. As the market share leader, Greenbits rings $3.7 billion in sales annually, comprising one-third of all cannabis sales in adult-use states. With the largest and fastest-growing network of cannabis retailers, we serve the most locations, reach the most customers, process the most transactions, and ring the most sales in the industry, making Greenbits the best-selling and most trusted cannabis retail platform nationwide.
Greenbits provides smart management solutions that help cannabis retailers maximize performance and make better business decisions. Our robust retail platform – with automated state-by-state compliance, inventory control, and personalized insights – enables owners, managers, and budtenders to run, protect, and grow their businesses with ease. www.greenbits.com
From The Hill: Lawsuit to Challenge Industry Exclusion from SBA COVID-19 Relief Revving Up
For many businesses struggling during the COVID-19 induced shutdown, assistance from the Small Business Administration (SBA) through the Paycheck Protection Program (PPP) is the difference between lifeline and economic ruin. But for thousands of professionals serving state-legal cannabis businesses, including non-profits like NCIA and innumerable small businesses alike, access to PPP money remains elusive. A group of lawyers is in the process of developing a legal challenge to this unjust treatment.
The SBA Policy Notice on April 3, 2018, precludes any company that has received anyrevenue from a marijuana business from receiving SBA assistance, including service providers like lawyers, accountants, or consultants which provide counsel to thousands of legitimate cannabis businesses around the country. This SBA guidance has prevented many firms from applying for PPP loans and casts doubt as to whether firms that received loans but have done work for cannabis clients will have their loans revoked.
A coalition of law firms led by Yetter Coleman LLP is seeking to raise $150,000 for a legal defense fund to strike down the guidance. The lead plaintiff will likely be a law firm whose PPP application was denied because of this rule. If successful, the challenge would benefit the industry going forward by removing the “Indirect Marijuana Business” guidance from SBA’s eligibility determinations. But time is of the essence with the PPP program winding down and the forgiveness rules are already likely being drafted.
In a recent letter to Treasury Secretary Mnuchin and SBA Administrator Jovita Carranza, the American Bar Association (ABA) requested the SBA to clarify eligibility under the business loan program to allow access to the Coronavirus Aid, Relief, and Economic Security (CARES Act) funds through the PPP for lawyers and law firms that provide services to cannabis businesses operating legally under applicable state laws. According to the ABA, of the 1.3 million attorneys practicing in the U.S. in 2019, approximately 78% are in jurisdictions where marijuana sales are permissible under state law. Under the current guidance, the ABA is concerned that many of these lawyers and their firms could be unfairly disqualified from receiving PPP assistance.
“The ABA supports amending federal law to ensure that lawyers do not face the threat of criminal charges when they represent clients in states that have legalized marijuana,” the June 5 letter states. “Even before those changes are made to federal law, lawyers should also not be penalized for providing legal services to cannabis-related businesses that comply with state laws.”
In a March 22, 2020, Twitter post in response to a Washington-based cannabis business owner, the SBA publicly confirmed that cannabis businesses are not able to access the SBA funded programs even though cannabis businesses are as equally harmed by the coronavirus pandemic as other law-abiding, tax-paying small business operators. To date, the SBA has not formally addressed the eligibility of cannabis businesses for the broader Paycheck Protection Program.
Back in March, several industry and advocacy groups, including NCIA, issued a letter to congressional leaders seeking to limit restrictions and allow cannabis businesses to obtain the same relief available to other legitimate industries. Among other things, the letter cites the unfairness of ineligibility for SBA relief for cannabis businesses given their obligations to follow federal employer requirements and the disproportionate impact ineligibility has on small businesses.
The legal U.S. cannabis industry is projected to top $20 billion in annual sales in 2020 and now employs nearly 250,000 workers. One would think access to SBA loans that support businesses in keeping this significant workforce employed during the coronavirus crisis would be an economic priority for policymakers in Washington DC. Time will tell if this goal becomes a reality.
If you are an ancillary business interested in either donating to the legal fund or willing to offer your professional support, please email Shane Pennington of Yetter Coleman LLP at spennington@yettercoleman.com.
Meet The Team: Jon Dinh – NCIA’s Membership Manager
Hello! My name is Jon Dinh and I work as the Membership Manager here at NCIA! I started my cannabis journey three years ago when I first tried cannabis legally in my home state of Colorado and completely changed my life for the better!
I grew up in Thornton, Colorado which is a suburban area north of Denver and didn’t have any interest in cannabis growing up. None of my friends participated in the cannabis culture so I didn’t have any influence growing up. Coming from an Asian culture, it was heavily looked down upon. When the laws changed in my state, I decided to try it and visited my first dispensary. I was amazed at the professionalism and knowledge the budtender provided. I ended up with an edible cookie as my first experience and took a bit much for a first time user. It’s crazy to think that moment changed my life and career path.
I was now curious about the war on drugs and drug policy reform and around this time stumbled upon NCIA. I was lucky enough to get hired as the Membership Coordinator and have learned a great deal about cannabis reform and how it affects people’s lives. I’m fortunate enough to try cannabis safely and legally and have no doubts that others will follow the same path for their first time experience. My scenario is much more common now with states legalizing and people having open access to cannabis. I just hope they’re more careful with their first dose than I was!
I’m now part of the mission here at NCIA to get cannabis businesses treated fairly like any other business in America and it has truly opened my mind to the struggles that face cannabis businesses now and what’s to come in the future. I hope to contribute towards the needed change of these laws and for better treatment of cannabis businesses. Cannabis businesses, even though legal, still exist in a world where the laws are not up to date and have caused issues like loss of profits and having to pay higher taxes.
I got to attend my first Lobby Days event with NCIA to talk about current cannabis issues and it was one of the most powerful experiences channeling my inner citizen lobbyist. I got to see firsthand how Capitol Hill works and what Hill meetings are all about. It’s an important part of how the government works, and it was great to see members of NCIA becoming citizen lobbyists too. This was my first time in D.C. and was blown away by the inner workings of it all. Thanks to NCIA for allowing me to be part of Lobby Days and hope other members of NCIA can join us in the future!
In the meantime, as part of my job duties, I hope to open the doors for others to experience cannabis in their home state and federal legalization in the future. I hope to change the world’s perception of cannabis and to open access to the plant.
Committee Blog: Practical Tips for Cannabis Businesses Impacted by Theft and Property Damage
As the country continues to grapple with the murder of George Floyd and its aftermath, we have seen reports that numerous cannabis dispensaries in California, Illinois, Oregon, and elsewhere have been the victims of theft and property damage. A number of shops have been hit multiple times in successive days, with many reports indicating that businesses are being targeted by organized groups not involved in protests.
The owners of these dispensaries, like many of the other business owners around them, are likely asking themselves: Is my insurance going to cover this? The good news is that, for many of them, it is likely that they will have coverage for at least some of the losses that they have suffered. What losses are ultimately reimbursed can depend on a number of factors, including what an impacted business owner does in the immediate aftermath of an incident. Thus, we provide below an outline of the steps that businesses should follow in the unfortunate event that your shop has been damaged:
File a police report.
Immediately report the loss to the relevant cannabis regulatory authority (check both state and local regulations to ensure full compliance).
Get in contact with your insurance provider and file a claim immediately. Once filed, you will receive a claim number and an assigned claims adjuster who you will work with from the very beginning to the end of the claim.
Ensure your place of business is well protected (even after the loss). Do your very best to continue to protect what you can after a loss.
Document everything. Take photos, save and review your video surveillance. Your insurance company will ask for this when you file a claim
Begin taking inventory of everything that has been damaged, destroyed, and stolen. Your insurance company will need this as well.
Review your insurance policy again and speak with your insurance professional.
Does your insurance policy cover civil unrest, theft, or vandalism coverage? Is it excluded? Is it not listed at all? Many cannabis businesses operate under property insurance policies that will cover losses for property damage and theft that occurs during a public disturbance.
Some insurance policies, however, contain “protective safeguard” endorsements creating certain requirements that the cannabis business owner must follow or a claim can be denied. Many of the requirements include a central burglar alarm, cameras, an approved vault or safe room, and other similar risk mitigation measures. Pay special attention to these protective safeguard requirements, and ensure that all are met. This can be particularly important for businesses that have already been the victims of crime. If the safety systems in question have been damaged or are otherwise inoperable as a result, make sure to put your insurer on notice of this fact and, ideally, get them to approve a temporary accommodation relieving your business of the relevant protective safeguard.
Policies may also be “sublimited” for certain types of property coverage, meaning that limits for particular types of loss are lower than the overall policy limits. Impacted businesses should look for a page entitled “Property Optional Extension Endorsement.” The types of coverage that might be sublimited include:
Employee Dishonesty;
Money and Securities;
Outdoor Property (Fences, Radio/TV Antennas/Satellite Dishes and Signs Outdoor Property (Trees, Shrubs or Plants);
Personal Effects and Property of Others (relevant if a dispensary has not taken title to product): and
Valuable Papers and Records (Other Than Electronic Data).
In addition to taking these actions, dispensary owners in cities where civil unrest is ongoing should give consideration to reducing their store hours or even closing entirely until conditions change in order to keep their staff safe. For those concerned about leaving product in their stores and having it stolen, some states, including California, allow for licensed cannabis dispensaries to remove product from a licensed facility in the face of a public disturbance or emergency. Nonetheless, businesses should always consult their state and local regulations and/or consult with an attorney before removing cannabis products from their facilities in any way that would normally be impermissible under applicable laws.
In sum, while cannabis dispensaries unfortunately appear to be attractive targets for opportunistic criminals, there are a number of steps these businesses can and should take right now to help them begin to pick up the pieces.
Driving High? Information From The CO Department of Transportation
Since Colorado became the first state to legalize recreational marijuana in 2014, the Colorado Department of Transportation (CDOT) has used its unique position to remain on the forefront of traffic safety campaigns for marijuana-impaired driving. CDOT recently launched its new Drugged Driving Colorado website, DriveHighDUI.com, which features telling insights, current data, and a lengthy list of resources to help inform not only Coloradans but marijuana consumers and industry professionals nationwide. As communication shifts to a heavy online focus amid COVID-19, providing accurate and detailed information from a distance is more necessary than ever.
Consumer Education
Consumer health and safety are important to all cannabis businesses, yet information on driving impaired can be hard to come by. CDOT’s website has educational resources that answer commonly asked questions and provide data and downloadable social media graphics, videos, and more. CDOT encourages the free use of its resources and information for in-store screens, website education pages, email blasts, blog/newsletter posts, or at conferences and trade shows.
Frontline Employee Knowledge
Budtenders, manufacturing representatives, and trade publications are the voices most trusted by cannabis consumers. Educating all staff can help dispel false perceptions of cannabis-impaired driving and help change behaviors around driving high. Learn the basics and keep up with the latest news on the Featured News section of DriveHighDUI.com. If you have industry news or an article idea, please reach out to CDOT Traffic Safety Manager Sam Cole at sam.cole@state.co.us.
Community Relations — Be A Valued Resource
Building relationships with the communities in which they operate is crucial to the health and wellbeing of the cannabis industry. CDOT has partnered with health care organizations, nonprofits, universities, and neighborhood groups to communicate the dangers of driving high. Affecting change takes cooperation — and cannabis companies can use these resources to open a dialogue with local, state, or national organizations to help spread the word.
Impaired driving from alcohol and/or other drugs is one of the leading causes of traffic deaths on Colorado’s roads, accounting for approximately one-quarter of all fatalities. This is an issue that affects all of us. CDOT hopes its ongoing efforts to educate cannabis consumers extend beyond Colorado’s borders and we encourage NCIA members and industry organizations across the nation to take advantage of the available resources so we can lead by example and keep our communities safe.
Meet The Team: Jeremy DePasquale – Salesforce Administrator & Business Process Analyst
Hi, I’m Jeremy and this is my story. I grew up in a middle-class immigrant household in Schenectady, NY, in the same house my grandparents bought when they moved their kids from Sicily to America. My brother, my sister, and I loved torturing my grandfather and were no strangers to getting chased down the driveway by him and his broom. Life was as you might expect in an Italian house, the talking was loud, the food was good, and the family bond was strong.
Fast forward… I had no idea what I wanted to do with my life, I had a lot of fits and starts with college until settling into the one thing I knew I truly loved, politics. I struggled hard in college (and in high school for that matter) only doing well in my PolySci classes. Somehow I managed to get a B.S. in Political Science and Government from S.U.N.Y. Brockport, graduating late 2009, just as the economy was headed into the Great Recession. Not so perfect timing.
I did what any naive kid just out of college and in love with politics would do: I moved to Washington, D.C. so I could get a job on the Hill and start my awesome career! Wrong! I couldn’t even sniff an interview on the hill. I spent the next two years doing temp work around the Beltway, ending with a stint at the American Institute of Architects (AIA).
In April 2012, I decided it was time to move on and I started to set my sights on Denver, CO. The Colorado chapter of the AIA was looking for someone to help plan their national convention that was coming to town, so I packed up my stuff and dog and headed into the unknown. All good things come to an end…my 18-month contract expired with AIA and I found myself unemployed and back on the job market.
Four months later, I applied for a position with the National Cannabis Industry Association, I went through the interview process but ended up not getting hired and figured I would never hear of the organization again, but life works out funny sometimes. Out of the blue, three months later I got an email from Aaron Smith asking if I was still interested, as they were growing so fast they had already promoted the person they chose for the position initially. We had a few conversations and drinks at a Deadhead bar, Quixotes True Blue for all you Denver folks, and on May 1, 2014, I started working for NCIA.
I’m not going to lie, I had no idea what I was doing here or how I fit in, after all I was the first NCIA hire with a more structured association background as opposed to grassroots activism. Other than consuming cannabis occasionally I had no connection to the plant like the other staff did. They were long time activists and all had a personal story for their passion and what cannabis advocacy meant to them. I just needed a job.
At that time NCIA’s Denver office was housed in a carriage house behind a historic mansion used as the headquarters of the cannabis law firm Vicente Sederberg. It was commonly referred to as the “Cannabis Cottage.”
It was kind of surreal, I worked in the living room, while others worked in adjoining bedrooms and living spaces. It also wasn’t uncommon for me to see Aaron walking by with his laundry to utilize the washer and dryer in the cottage. In short, that NCIA was much different than the juggernaut we have since become.
Little did I know, what started as just a job would completely change my life. I was able to learn first-hand all about the plant, the people, and the industry. This isn’t just a bunch of stoners who wanted cannabis legal so they could get high. This was about quality of life, social justice, medicine, and community. It has been the privilege of my career to work with people who are so committed and passionate about the history we are making and I couldn’t be prouder to be part of it. If you told me 10 years ago that I would be working in the cannabis industry, I would have laughed in your face, but now I couldn’t imagine working for something I’m not passionate about.
I’m particularly proud of the part I played in (re)launching our member committees and implementing an organization-wide database to help us better engage with our members. I also have been leading a few exciting new benefits, like NCIAConnect: our exclusive online community, and a completely mobile NCIA experience with our new app. Both are coming super soon!
After serving as the Membership Coordinator, Manager and ultimately leading the department as Director, I recently shifted into a whole new role as the SalesForce Administrator and Business Process Analyst. This role is allowing me to combine my technical abilities and my institutional knowledge of NCIA to help move us forward in a coordinated and strategic way. I have also relocated back to the East coast for some loud talking, family connections, and pasta Sundays.
NCIA has changed dramatically since I started 6 years ago, we launched national conferences, grew our staff five times over, doubled down on our advocacy and commitment to our members, and we finally got out of the old “Cannabis Cottage.” I’m not certain what my future holds but I would like to think that NCIA and I have played a role in each other’s successes and are primed for bright futures.
NCIA Committees: Now Accepting Applications For 2020-2021 Term!
NCIA is excited to announce that we are accepting applications for the 2020-21 Committee term! We need your skills, passion, and wide-ranging perspectives to build upon our energetic, inclusive, and innovative committees. NCIA committees are an opportunity for our members to get engaged in specific industry issues and sectors of their professional expertise and interest.
All NCIA annual members in good standing are invited to apply for an NCIA committee seat for the 2020-2021 committee term, to commence on August 1, 2020.
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,
enhance your leadership skills,
expand your professional and personal network, and
develop best practices and guidelines to shape the future of our industry.
Requirements:
All NCIA annual members whose memberships are current may apply;
Appointees (or their employing company) must maintain a current membership throughout the term of their appointment;
Appointees may serve on no more than one committee at a time;
All committee applicants must complete the online form fully and in good faith by the August 1, 2020 deadline; and
Appointees must commit to dedicating at least a few hours monthly to their committee projects and scheduled meetings/calls. Committees may hold scheduled teleconferences, but the majority of committees’ work will be done online.
Review the list of current committees and see if one is a good match for you. If so, apply today to become tomorrow’s NCIA committee leader!
Together, we can accomplish incredible things and help steer the cannabis industry in the United States towards its bright future. Apply today for the committee that interests you the most, or reach out to Committees@TheCannabisIndustry.Org with questions or ideas.
NCIA Today: May 2020 Episode – HEROES Act, #CannabisIsEssential, and New Fireside Chats for NCIA Members
Host Bethany Moore, NCIA’s Communications Manager and host of NCIA’s weekly Podcast ‘NCIA’s Cannabis Industry Voice‘ brings you an in-depth look at what is happening across the country in federal cannabis policy reform and with NCIA.
From the top, Bethany discusses the NCIA #CannabisIsEssential movement, coordinating efforts between our communications, public policy, and government relations teams. We have been hard at work, exploring avenues for the legal cannabis industry to access federal COVID relief benefits, like including SAFE Banking language in the recent HEROES Act.
We check in with NCIA Deputy Director of Public Policy, Rachel Kurtz, to hear some of the recent highlights from our Allied Associations Program. Fortunately, most states have deemed cannabis as essential, and our state associations are working in their areas to make relief options, or commerce opportunities, easier to reach.
Kim Kovacs, President of the Arcview Group, checks in with Bethany to discuss the relaunch of their Women’s Investors Network. The cannabis industry leads on women in C-suite and leadership roles, but that doesn’t mean we can be complacent. ArcView has been offering regular webinars, and other digital programming options, for women energetic about entering the space. The next will be looking at the science behind the plant, join the conversation!
We’ll see you next month for NCIA Today!
Webinar Recording: All Gave Some, Some Gave All – A Policy Discussion on the Veterans Cannabis Conundrum
In case you missed this webinar on Memorial Day, watch this recording.
Especially around Memorial Day, it’s important to remember the reason for the holiday: our veterans. Unfortunately, though all gave some and some gave all, the vast majority of our veterans are still unable to access safe, regulated cannabis. Many individuals in the veteran community struggle under unique health burdens stemming from their honorable service, and have experienced little success in managing their conditions with available pharmaceuticals. Through cannabis, veterans of all generations and with various conditions have experienced improvements in their quality of life by using cannabis.
In Congress, two bills aimed at tackling this issue have already passed out of the House Veterans Affairs Committee — H.R. 712: the VA Medicinal Cannabis Research Act of 2019, sponsored by Congressman Lou Correa (D-CA) and H.R. 1647: the Veterans Equal Access Act, sponsored by Congressman Earl Blumenauer (D-OR). In March, the Congressional Budget Office scored H.R. 1647 and found that passing the bill into law would cost the federal government exactly $0.
Enjoy this webinar focused on cannabis, health, and our armed services members. NCIA’s Government Relations team is joined by none other than the lead sponsors of the VA Medicinal Cannabis Research Act of 2019 and H.R. 1647: the Veterans Equal Access Act, Congressmen Lou Correa and Earl Blumenauer, respectively. Our panel also includes the cofounders of the Veterans Cannabis Coalition, Eric Goepel and Bill Ferguson. This unique opportunity will allow you to hear from the lead sponsors of legislation designed to give our veterans the best quality of life possible, interact with member(s) of Congress, and learn more about the prospects of these bills passing into law.
Allied Association Blog: Cannabis Policy Beyond Our Borders
NCIA’s Allied Associations Program (“AAP”) facilitates cooperation between NCIA and Allied Associations and the sharing of resources for the mutual benefit of our respective memberships and the cannabis industry more broadly. The AAP provides the means for the leaders and staff of NCIA and Allied Associations to learn from, work with, and support each other.
SUPREME COURT APPROVES SECOND EXTENSION TO REGULATE CANNABIS IN MEXICO
Due to the work suspensions caused by the COVID-19 outbreak, the Mexican Senate requested the Supreme Court of Justice of the Nation for an extension of the deadline to legislate in favor of cannabis regulation. This extension is the second that has been granted; the first was petitioned after the deadline expired in October 2019 and was extended to April 30 of this year. The Supreme Court had granted this extension as a unique and exceptional situation in October 2019, appealing to the complexity of the issue.
USERS DEMAND REOPENING CANNABIS CLUBS IN SPAIN
Associations such as the Patients’ Union for Cannabis Regulation (UPRC) demand that the Spanish government allows reopening these clubs, and that cannabis be considered as an essential good for the life of these patients, as countries like the United States have done. For comparison, other businesses such as tobacco and alcohol sales have been considered essential in this country. The state of alarm has generated measures that cut off the somewhat regulated routes that exist in Spain to acquire cannabis, as is the case with cannabis clubs. These organizations allowed access to medical cannabis to about 200,000 – 500,000 people in total.
CANNABIS INDUSTRY AMID THE PANDEMIC.
The health crisis derived from the COVID-19 pandemic has disrupted all economic sectors on a global scale. The cannabis industry is not an exception and has had to adapt to new circumstances. You can find a list of policies in countries where cannabis is legal currently. According to the market research conducted by Prohibition Partners, most consumers in Europe and North America will tend to maintain or increase their cannabis purchases in the coming months (March to June).
Erick Ponce is President of the GPIC. He has worked for 16 uninterrupted years in the healthcare sector, both private and public (specializing in government sales), where he has dedicated to promoting the individualization of drugs and medications and, with this, the reevaluation of the roles played by physicians, pharmacists, and chemists.
In 2017, with Artcan as an investor, he created ICAN, with the goal of opening cannabis operations in LATAM, as well as creating a network of technical, operational and commercial infrastructure while promoting education, information, collaboration and certification of cannabis and it’s derivatives for applications in therapeutics and wellness. In 2019 he was chosen as the spokesperson for the “Grupo Promotor de la Industria del Cannabis.”
Veterans And Cannabis: A Discussion With Congressional Champions
by Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations
Last week, NCIA’s Government Relations team honored the veteran community and Memorial Day through our latest #IndustryEssentials webinar. Our Director of Government Relations, Mike Correia, and I “Zoomed” with congressional cannabis champions Congressman Lou Correa (D-CA) and Congressman Earl Blumenauer (D-OR), as well as the cofounders of the Veterans Cannabis Coalition, Eric Goepel and Bill Ferguson. During the webinar, we talked about how through cannabis, veterans of all generations and with various conditions have experienced improvements in their quality of life and also discussed policy and legislation to address this conundrum. NCIA members can catch the full webinar recording, but in the meantime, check out a few highlights:
Congressman Earl Blumenauer (D-OR):
“In fact, if we were able to have the Veterans Administration (VA) embrace medical cannabis, veterans would get better care because they could deal directly with their primary care physician, who is in the best position to give them appropriate advice. But sadly, the VA is caught with this federal restriction and they have a very narrow interpretation of what they can do, and how they can do it, and they simply do not permit their physicians to work with veterans to discuss and work with — let alone prescribe — medical cannabis.”
Congressman Lou Correa (D-CA):
“These folks came back from the theater of war with a lot of invisible, psychological scars– many of them that never were addressed. Back when I was the Chair of the Veterans Affairs Committee in the state of California, I would go on to have town halls and I remember veterans more and more would ask me, ‘Hey state senator, what’s going on with cannabis? I prefer cannabis to opioids, it makes me feel a lot better, I’m being able to function much better, why can’t I be prescribed cannabis by my VA doctor?’ And that really set me off on a quest to address medical cannabis in reference to veterans. Now in Congress, that’s something that I’m trying to work on front and center, and when I say trying to — I am working on it — I’m trying to score some victories there and get this legislation to the President’s desk for a signature, but again in the context of an election coming up, it’s going to be a challenge. But nonetheless, I think it’s a task all of us must take to heart and work hard towards.”
Veterans Cannabis Coalition Co-Founders:
Bill Ferguson: “I think it’s really cool that both of those politicians you know — and you know, they’re not backbench guys either — they essentially say that, you know, like if we can get the VA bill to pass, that will be like opening the floodgates for the rest of the cannabis legislation, you know like the banking and all that kind of stuff. And I think they’re right because you know once you poke a hole in a dam, you know eventually a dam is going to break.”
Eric Goepel: “The problem is that they’re largely out of step with the population — like the general population and the veteran population. I mean Pew’s been tracking public support for medical cannabis legalization and adult-use legalization and it’s 92% in favor of medical use and 60 plus in favor of legalization. That’s pretty overwhelming when it comes to any political issue. Like these issues out-poll most politicians and popularity and certainly, maybe beyond like universal background checks, I can’t think of too many other major policy issues that have this level of public support that see no conversion into federal legislative change.”
We are all so grateful to the Congressmen and the VCC team for joining us. While Memorial Day has now passed, I’m continuing to feel so appreciative of our fallen service members. While all gave some and some gave all, the vast majority of our veterans are still unable to access safe, regulated cannabis, and since they fought for us, we’ll keep fighting for them.
Meet The Team: Clarissa Krieck – NCIA’s Director of Business Development
I was born and raised in the far south of Brazil, drinking yerba mate, listening to rock, going to the beach, and eating lots of BBQ! The war on drugs was fought hard in our streets, and we all remember the guns, the violence, that “social pain” growing up. I earned a business degree and relocated to the U.S. in 1999. Little did I know I was going to join a movement with the greatest mission, one much greater than you or I can grasp.
The West (and a Navajo rescue pup named Samba) stole my heart. Before cannabis, I led programs and teams working to bridge the digital divide through STEM education in Denver Public Schools for over 10 years. Colorado wowed me with its socially responsible libertarianism, vibrant third sector, and bravery to challenge the Union on unfair laws. Laws which later would personally affect me when I was diagnosed with cancer in 2011.
I felt extremely blessed to have access to regulated medicinal cannabis in Colorado. Edibles were instrumental in my healing and recovery. But it was not easy. Whether it was my medical team, my family, or my employer, I found myself educating my community constantly on the eminent scientific evidence behind the therapeutic properties of the plant.
I had been happily married to a U.S. diplomatic serviceman for nearly two decades. But when the Federales found out about my state-level medical marijuana registry, I was not given clearance to serve our country along his side. The conservative, globe-trotting lifestyle of the State Department did not allow for any access to cannabis. It became clear that I had to choose between my life and my marriage as the call to free cannabis from my home base in Denver spoke loud and clear. It was evident: I would have to fight for my birthright to heal myself. And I have never looked back!
After my divorce, I returned home from Warsaw, Poland, and immediately landed a job trimming bud in different medical centers. Between 2014-2016 I took a job as a sales representative with Bluebird Botanicals, one of the pioneers in the CBD and hemp space. I volunteered with the National Hemp Association (NHA) and the Hemp Road Trip and was truly blessed to work and learn alongside the greatest hemp professionals and activists. It was during this time I realized that hemp was going to be huge soon, and that THC was in need of some TLC.
I joined the board of Denver NORML from 2016-2018 as a volunteer, a flagship chapter that led the charge to lobby on behalf of consumers regionally and nationally on issues like social consumption, impairment, and access post adult market launch. Professionally, I led marketing and sales for Indo Expo Trade Show, a grower-centric cannabis trade show hosted in Denver and Portland every year. What a neat chance to build, support, and connect the emerging responsible industry!
In 2019 I proudly joined NCIA’s business development team to continue fighting and advocating for this most amazing industry we have built block by block. That’s right! We did not arrive here by parachute. We owe a great deal of gratitude to every activist, patient, mother, entrepreneur, policy official, and dreamer who refused to obey laws so unfair they border negligence. There is not a day in my life where I do not profusely thank the universe for this opportunity to represent the cannabis industry and to be a voice of change.
What came after my cancer was a series of countless blessings powered by a lot of hard work. Watching Dr. Mechoulam speak at the Inaugural Institute for Cannabis Research (ICR) Conference in Colorado, getting a private tour of the U.S. Capitol from now-Colorado Governor Jared Polis, leading policy reform and philanthropic work in Brazil, speaking to nearly 20,000 people at Hash Bash post adult market legalization in Ann Arbor, Michigan, ground zero for decriminalization… And the list goes on! Even when my retirement account was taken away in 2019 because I work in cannabis… that just fueled my fire more!
I always knew I would one day fight for justice when I was a little kid, but how could I have predicted that from something so disruptive, heavy, and terrible would bloom the most beautiful lotus flowers I could ever imagine? How is one to comprehend the many, often painful turns life takes, only to later arrive at the most fruitful of gardens? Ah! The mysteries of life! I will take every single one of them, accept them, and be grateful! All the way. Onward!
Committee Blog: Cannabis and COVID-19 – A Legal Perspective
As the COVID-19 pandemic continues to alter the day-to-day lives of humans across the globe in an unprecedented fashion, industries have made considerable adjustments to maintain their operations while protecting the health and safety of the workforce and the public. While some industries have had to cease operations to comply with “stay-at-home” orders, most states regulating cannabis have deemed cannabis essential, allowing cannabis businesses to continue operations during the COVID-19 quarantine period. The fact that cannabis was deemed essential in states such as California, Colorado, Illinois, and Michigan, demonstrates a major shift in public perception of cannabis and its utility. While challenges remain as they do for all industries, the cannabis industry appears poised to withstand the pandemic and to solidify its role in the economy.
Despite being deemed essential, adult-use cannabis sales have begun decreasing in states such as California, Colorado, and Nevada. Washington, however, reported record sales in April highlighting the diversity of legal markets throughout the United States. States that derive considerable sales for cannabis tourism like Nevada and California may see losses due to travel restrictions and mandatory self-quarantine periods. Although early sales reports suggest that the industry is equipped to weather this crisis, April sales only reflect the market one month into the pandemic that is likely to extend through the summer and potentially into next year. Thus, much remains unknown about the industry’s potential to stave off the impacts of an increasingly likely economic recession. Still, reports show that demand for cannabis remains strong and could potentially increase as the nation grapples with the significant financial and emotional duress associated with the pandemic.
States have taken proactive measures to ensure that patients and customers may safely access cannabis. States including California and Nevada have issued official guidance on best practices for cannabis businesses to observe to mitigate the spread of infection and preserve and promote public health. This guidance has largely prioritized the reduction of person-to-person interaction and adherence to heightened sanitation and hygiene protocols. Best practices for reducing person-to-person interaction include conducting sales by pick-up or delivery where possible, reducing the number of individuals allowed at the dispensary at any one time, and controlling the flow of visits to reduce the potential for exposure. Retailers have used space indicators like chalk, tape, and stanchions to demarcate 6-feet of separation between customers standing in line. Best practices for maximizing sanitation and hygiene include the promotion of contact-free systems such as tap-and-pay payment technology where possible, and the removal of handheld menus, tablets, and iPads, and aroma jars from dispensary surfaces. Retailers are advised to clean and sanitize commonly touched surfaces on a routine basis and to provide hand sanitizer to all employees and patrons in conspicuous locations to encourage frequent sanitization. Additionally, employers are required to monitor their employees’ health and hygiene practices. Employers should require any employer showing a COVID-19 related symptom to stay home from work.
While some businesses can rely on federal stimulus programs such as SBA loans for COVID-19 related relief, cannabis businesses cannot. Despite being equally harmed by the pandemic as other law-abiding, tax-paying small business operators, cannabis operators are ineligible for such funding because the cultivation and sale of cannabis remains illegal under federal law. While cannabis businesses are not currently eligible for federal relief programs, it appears that cannabis businesses may be eligible to defer the deposit and payment of their share of Social Security tax.
Nonetheless, as further proof of the growing bipartisan support for cannabis, multiple senators and congress members have requested that future COVID-19 relief packages include accessibility for cannabis businesses. One of the main reasons cited has been the cannabis industry being deemed “essential,” thereby allowing it to provide much-needed support to various states’ economies.
While the details of a post-COVID-19 world remain to be seen, one thing is clear – cannabis will continue to play a growing and important role in the U.S. economy.
Sahar Ayinehsazian is an attorney in Vicente Sederberg‘s Los Angeles office, where she focuses on corporate transactions, cannabis banking, and regulations. With her specialized knowledge, Sahar helped to establish and currently co-leads Vicente Sederberg’s Banking and Financial Services Department. As a member of the National Cannabis Industry Association’s Banking Access Committee, Sahar also works on strategy and educational advocacy to enable state-licensed businesses to obtain accounts at depository institutions.
Kelsey Middleton is a Regulatory Specialist in Vicente Sederberg’s Los Angeles office, where she focuses on licensing and regulatory compliance. Kelsey is responsible for assisting a dynamic range of cannabis clients in obtaining state and local cannabis licenses, permits and approvals, and navigating the complex and rapidly evolving regulatory landscape of the cannabis industry. She routinely helps clients prepare the requisite applications and documentation for state and local licensing and permits, and facilitates communications with cannabis industry regulators to promote efficiency and compliance throughout the licensing process.
Prior to joining VS, Kelsey interned at the Los Angeles Department of Cannabis Regulation where she analyzed proposed cannabis legislation and approaches for enhancing the efficacy of cannabis social equity programs.
Kelsey obtained her Juris Doctor from the UCLA School of Law, where she was the Co-Founder and Co-President of the Cannabis Law Association, and External Relations Chair of the Black Law Students Association.
Webinar: Policy Council Conversations: Just Say No – Keep the DEA out of Cannabis Research
NCIA’s #IndustryEssentials educational webinar series is our new digital platform featuring a variety of programs to provide you timely, engaging, and essential education when & where you need it most!
The Policy Council Conversations series features insights & invaluable content directly from members of NCIA’s Policy Council, the preeminent “Think Tank” for the cannabis industry.
The Drug Enforcement Administration recently issued a notice of proposed rulemaking on cannabis research. If adopted, this rule would fundamentally change how cannabis research is conducted. NCIA recently submitted public comments, rejecting the DEA’s power grab and strongly suggesting that a public health agency (i.e. Health and Human Services, National Institutes of Health, etc.) lead on cannabis research. Simultaneously, lawyers at Yetter Coleman filed a Freedom of Information Act lawsuit against DOJ, demanding the release of an OLC memo relied upon by DEA in their rulemaking. That successful suit was brought on behalf of Scottsdale Research Institute.
This panel will discuss the critical importance of cannabis research, the DEA rulemaking and NCIA’s numerous objections, and the lawsuit against DEA and the resulting disclosure of the DOJ policy memo.
Register now to join us on Wednesday, June 3 at 12:00 PM MT.
Jodi Avergun
Chair, White Collar and Criminal Defense and Investigations Group
Cadwalader, Wickersham & Taft LLP
&
Former Chief of Staff
Drug Enforcement Administration (DEA)
Andrew Kline
Director of Public Policy
National Cannabis Industry Association
Sue Sisley, MD
Principal Investigator
Scottsdale Research Institute
Matt Zorn
Associate
Yetter Coleman
Shane Pennington
Associate
Yetter Coleman
SAFE Banking Provision of Federal Relief Package Approved in House, Faces Difficult Path in Senate
by Morgan Fox, NCIA’s Director of Media Relations
It’s been a busy week for NCIA in our nation’s capital as we try to make sure the industry can survive the pandemic and continue to develop and thrive once the country begins to focus on recovery.
Earlier this month, NCIA and a coalition of advocacy and industry groups sent a letter to Congress urging them to include the SAFE Banking Act in the next stimulus package. We worked diligently with allies and our champions in the House to this end, reminding lawmakers that this legislation was approved with an overwhelming bipartisan majority in a stand-alone bill last September and that the pandemic was creating even more need for cannabis businesses to be able to access banking services immediately.
Unfortunately, the partisan backlash to the Democrat-backed legislation was almost immediate, with some lawmakers opting to use this necessary and nearly revenue-neutral provision of the legislation as a punching bag and a symbol of overreach in the lower chamber. Republican lawmakers decried things as irrelevant as the number of times the word “cannabis” appeared in the language and claimed that this provision did not belong in a COVID-related bill. Senate Majority Leader Mitch McConnell even complained about a section of the bill that would study diversity in cannabis banking access and cost a practically infinitesimal percentage of this roughly $3 TRILLION stimulus bill.
This misdirected vitriol was thankfully not enough to block cannabis banking reform from moving forward. On Friday, the House approved the HEROES Act with the SAFE Banking language included!
The public health and safety benefits of allowing cannabis banking are undeniable. Our industry employs hundreds of thousands of Americans and has been deemed ‘essential’ in most states. Forcing the majority of them to deal almost entirely in cash puts workers at risk of infection from the cash they are handling. It makes the social distancing that is so important to getting this pandemic under control much more difficult and increases the danger for workers and consumers, particularly immunocompromised patients. The public safety concerns regarding cash being a target for crime will only grow as unemployment rates increase around the country.
The economic benefit to post-COVID recovery is clear as well. Lack of access to banking and other financial services will ensure that the cannabis industry – which has been exemplary in providing continuous healthcare, preserving jobs, and generating much-needed tax revenue during this disaster – recovers at a significantly slower pace than other industries. We deserve fair access to the financial systems utilized by every other legitimate industry.
Make no mistake: this is a big step forward for cannabis policy reform. But now comes the hard part – convincing the Senate to support this legislation. With or without cannabis banking language, all signs point to an uphill battle getting the Senate to consider any additional coronavirus relief spending. But that’s all the more reason to redouble our efforts, and support continues to grow. This week, a bipartisan group of 34 state attorneys general added their voices to the chorus calling for cannabis banking reform.
And with the chances for direct access to federal relief funding looking increasingly slim, it is absolutely vital that we do everything we can to push this legislation forward.
Please contact your senators today and ask them to support the HEROES Act with the House-approved cannabis banking provisions.
Recently, we had the pleasure of joining a webinar hosted by NCIA in which they discussed the state of the Illinois market. The #IndustryEssentials presentation covered topics such as Illinois House Bill 1438, social justice reform, licensing and social equity.
Social equity just so happens to be a topic near and dear to my heart and is something we advocate for in everything we do in the industry. So let’s talk about it. What exactly is social equity and why is Illinois always in the social equity conversation? Well, social equity came about as an answer, if you will, to the many unfair statistics we see in the industry as a whole. What statistics, you ask? Well, 80% of the cannabis industry is owned by white males, even though minorities are four times as likely to be arrested for cannabis-related offenses. Social equity is an intentional effort to lessen the gap and provide all people the opportunity to operate and work in the cannabis industry.
One misconception people tend to have is that social equity is diversity. This couldn’t be further from the truth. By definition, a diverse team is a team of people that represents differing racial and ethnic backgrounds, religious beliefs, sexual orientation, gender, disabilities, and military status. Diversity is about pulling together a well-rounded team to be more successful in solving the customers’ needs.
Social equity is purely about socioeconomic barriers. While that may be written in cannabis regulations differently depending on the state, here in Illinois, a social equity cannabis organization is defined as:
A cannabis organization that is at least 51% or more owned by individuals who hold social equity status.
OR a cannabis organization that has at least 51% or more of employees who hold social equity status.
How do we determine if a person holds social equity status here in Illinois? The Illinois Department of Commerce and Economic Opportunity (DCEO) surveyed census records to determine what areas had poverty levels 20% above the national average, what areas had 20% or more of families on food assistance programs and what areas that had schools with 75% or more of their students on the free lunch program. These particular areas were then surveyed for the prevalence of high drug-related arrests and this map was created.
If you type in an address and the address is covered in blue, that means that area is a disproportionately impacted area or “DIA”. Now there’s yet another layer to social equity; the war on drugs. If you received a charge, conviction, or arrest related to cannabis in Illinois, that now is expungable under the new Illinois bill you have social equity status. But wait, there’s more. If you have a parent, spouse, or child who received a charge, conviction, or arrest, that means you have been affected by the War on Drugs and also have social equity status.
Families who weathered the trauma of the war on drugs saw it in lost opportunities, barriers to entry, and constant judgment because of possessions, distribution, or consumption of a plant that is now legal in the state of Illinois. Far too often, these charges affected people already living in disproportionately impacted areas.
So what are the rules?
For principal officers applying for licenses:
You must have lived in a DIA for at least five years and have two forms of identification proving this, including, state ID, driver’s license, pay stubs, voter registration cards, utility bills, or anything else the state may deem acceptable forms of residency.
You, your parent, your spouse, or your child has a charge, conviction, or arrest that is now expungable under the bill. This too must be proven with proper documentation of such arrest, charge, or conviction.
For employees:
You must currently live in a DIA and have two forms of identification proving this, including state ID, driver’s license, pay stubs, voter registration cards, utility bills, or anything else the state may deem acceptable forms of residence.
You, your parent, your spouse, or your child has a charge, conviction, or arrest that is now expungable under the bill. This too must be proven with proper documentation of such arrest, charge, or conviction.
While this all sounds very complicated, it is an effort by the state of Illinois to balance the scales. HB1438, although not perfect and never claimed to be, strives to right the wrongs of the war on drugs. While social equity holds 25% weight in the application process, we’re yet to see how it will be regulated for licensees in operation. With that said, many organizations in Illinois intend to keep those scales balanced and celebrate the most equitable cannabis market yet.
Rashaunah “Shawnee” Williams is the co-founder at Illinois Equity Staffing, a minority, disabled and woman-owned business based in Chicago, that supports the cannabis industry in education, job placement, human resources, payroll and compliance. While a south suburban native, Shawnee has also lived in Florida, Tennesee, Missouri, Nebraska, Louisiana, Oklahoma and California. She holds a bachelor’s and master’s degrees in business and has worked in industries such as entertainment, recruiting, tech, higher education, marketing and sales.
Shawnee and her business partner Lynette Johnson founded Illinois Equity Staffing because they understood the barriers to entry for lower and middle class people, minorities and women in the cannabis industry. Both having the Corporate America background, Shawnee and Lynette, understand the pain points of this population, as they both grew up in disproportionately impacted areas and are minority women. It’s this perspective that has allowed Illinois Equity Staffing to bridge the gap and create a more equitable cannabis industry in Illinois.
Shawnee also brings another unique perspective to IES, as she suffers from Lupus and Sjogren’s Syndrome, two disabilities that involve the immune system. As a Black woman suffering from two autoimmune diseases, Shawnee advocates for those with debilitating diseases seeking more knowledge on alternative and holistic approaches to symptoms causes by autoimmune diseases. She also is an advocate for those suffering from disabilities that seek to find more uplifting, supportive and progressive employers.
The cannabis industry has the opportunity to show older, more traditional industries the areas of opportunity to improve and to be more responsible. As such, Shawnee Williams and the team at Illinois Equity Staffing seek to be a leader in promoting a more socially equitable and diverse industry within the cannabis space in Illinois and nationally.
Meet The Team: Amy Rose – NCIA’s Business Development and Partnerships Manager
When I think about where I was 5 or 10 years ago, I would have never imagined that this is the career path I would be on. When I left college in 2013 with a Bachelor of Arts in Sociology, I considered so many options. Not one of them was working in the cannabis industry. I contemplated becoming a teacher. Maybe I should be a social worker? What about some sort of community outreach position? But before making any decisions on my career, I decided to take a huge step back and move my life across the country, with one suitcase, and with barely enough money in my pocket to survive more than a month.
The transformation of my life began in February 2014 in Colorado. A one-way flight. Four winter jackets (that I wore on the plane so I didn’t have to pay an extra baggage fee), three scarves, and whatever clothing I could fit in my one checked bag. Life ahead of me was extremely uncertain.
Coincidentally, I moved to Denver right after Colorado legalized the adult use of cannabis. That wasn’t the reason why I moved, although it definitely was a perk. I moved because I wanted a fresh start. I’d spent my whole life on the East Coast. First in a New Jersey suburb of New York City. Then on the west coast of Florida. After I finished school, I lived for a short while with my mom in very rural central Florida. It was horrible. Not a place for a young person. But it gave me time to think about what I wanted out of life. I knew I needed a change.
Things didn’t really go as planned. I was working long 60-hour weeks in restaurants and at catering gigs and was able to provide for myself, which was enough at the time. I told myself that by the fall of 2014, I wanted to get a “real job” whatever that meant. And so I did. I started working an administrative job at a physical therapy company. I learned a lot, had good days, bad days, but it certainly wasn’t making me happy. After spending 2 years working there, I felt like I was at a dead-end. I didn’t see the growth in myself that I had wanted to see. And I was more miserable at work than anyone should be.
The summer of 2016 was when I took a huge chance. I remember calling my family to tell them I got a job offer as a budtender at a dispensary and them thinking I was absolutely crazy for even considering it. A few weeks later, I got another job offer as an inventory manager at a dispensary. To my family, that seemed like a “real job” since if it didn’t work out, I’d have skills that I could transfer to something else. I was scared to take the leap, but nothing was scarier than staying at a job I was unhappy at.
My professional connection to the cannabis industry began in August 2016. I couldn’t believe it. Not only was I happier in my job, but I was making a living while working for a company in a relatively new industry that I truly believed in. I learned all about the retail and cultivation side of the cannabis industry. And I learned a whole lot more about myself. BGood Dispensary in Denver will always have a special place in my heart. I appreciate that they took a chance on someone new to the industry. Not to mention that they are long-time members of NCIA.
After spending a few months there, I decided to make my next move and work for a testing lab in Boulder, Rm3 Labs. I knew about cultivation and how dispensaries worked. My position at Rm3 Labs gave me the opportunity to understand the testing and regulations side of the industry. I was satisfied. But I wanted more.
My working relationship with NCIA started in July 2017. The past three years, as I’ve learned so much, have just flown by. I’ve been able to experience things I never imagined. Things that can only happen when you totally believe in the mission of your organization completely. I have been able to educate myself and others about things that are important to me personally and which I believe are important to society as well. Each day is an opportunity to learn something new. I’ve gotten to travel and experience new things that have contributed to my growth as a person. Sometimes I try to imagine where I’ll be five years from now. With this industry, that’s hard to tell.
Meet The Team: Rachel Kurtz – NCIA’s Deputy Director of Public Policy
I grew up an Army brat. By 1992, when I was 18 years old, I had lived in Wisconsin, New York, Texas, Oklahoma, Indiana, Alabama, and Germany. I was fortunate my father served during a 23 year period where he would never be sent into a conflict, especially as a physical therapist. I reaped the benefits of experiencing various cultures and socialized medicine.
I started my cannabis activism in 1995 volunteering with the Washington Hemp Education Network in Olympia, WA, while attending The Evergreen State College. Following a stint in Congressman Brian Baird’s district office, I went to law school at the University of Washington School of Law, figuring that having a law degree would give me more respect while pushing for such a controversial issue. Serendipitously, during my 2L year, the King County Bar Association (where my school was located) started a Drug Policy Project, where I was fortunate to get a job after graduation. I worked there, and simultaneously for the Voluntary Committee of Lawyers, until around 2010 when my boss was running for his third term in the state legislature and I wanted to focus on more local issues around medical cannabis implementation.
I spent some time as an acting-executive director for the Cannabis Defense Coalition, advising businesses on the medical cannabis laws, and became a partner in a medical authorization clinic and wellness center. I was also volunteering with Seattle Hempfest — where I started in 2004 and have continued to commit my free time to this day, now as part of the board of directors.
After the legalization initiative passed in Washington state in 2012, I began using my law degree to represent businesses during the licensing process, working with Wykowski Law and Gleam Law. But billing clients was not for me, and circumstances in my life made me want to run a cannabis business.
It was 2016, and by then I had moved to Oregon where they had also passed a legalization initiative. With a partner who had previously had a successful medical cannabis business, spent a year forming the business and pitching it, only to fail to secure enough funding to continue in such an expensive endeavor.
I became disheartened in the whole process and the future for all small businesses trying to make it in the industry. I knew the only way to truly have a successful industry that worked for all stakeholders and citizens was to legalize at the federal level, and the main organization focused on that effort was NCIA.
On a whim, I looked at the NCIA website to see if they were hiring. Lo and behold, they had a business development position open and wanted someone located in the Pacific Northwest and connected in the industry. Business development wasn’t quite in my skill set, but we made it work and I have had a hand in multiple areas at the organization since I started January 2017. My biggest effort so far has been the creation and development of NCIA’s Allied Associations Program; it has been very satisfying bringing together cannabis trade associations from around the country.
I am now Deputy Director of Public Policy and feel so fortunate to work with the brilliant Andrew Kline and all the work that is coming out of the Policy Council. I continue to work with the Allied Associations Program, alongside Amy Rose, to keep my finger on the pulse of state policy, and I’m coordinating NCIA’s member committees and their content, along with Morgan Fox.
Moving forward, I’m feeling like probably most people, ranging from the anxiety of existential uncertainty to the optimism of knowing cannabis is considered essential in society and the endless possibilities as we all navigate this new normal. The creativity and tenacity of all my amazing colleagues at NCIA and our members leave me full of hope.
Just Say No: Keep The DEA Out Of Cannabis Research
by Andrew Kline, NCIA’s Director of Public Policy
Democracy requires active participation. Of course, that starts with VOTING in November, but it doesn’t end there.
When Executive agencies request public comment on proposed rulemakings, it’s important that anyone with a stake in the issue chime in. This process is governed by the Administrative Procedure Act, and agencies are required to consider any such comments filed by members of the public. The more comments submitted, the more likely that the Executive Branch will take them into account.
This week, NCIA did its part by filing public comments in response to DEA’s proposed rulemaking on cannabis research. It is our view that instead of facilitating research, this proposed rulemaking (and any subsequent rules that codify DEA’s plans) will serve only to further hinder research and indefinitely delay any potential positive outcomes. And that is not a positive development for the industry. Because we believe that these proposed rules would radically overhaul how medical cannabis can be researched, we opposed this rulemaking in its entirety. We encourage the industry to file public comments expressing similar concern. So, get typing – because this is a very important rulemaking for the cannabis industry.
The success of modern medicine is dependent on sound implementation of evidence-based medicine. Expanding research capability is of critical importance for NCIA’s nearly 2,000 members who serve consumers and patients across the nation and who have a vested interest in knowing as much as possible about the medical properties of the cannabis plant. The reasons why the U.S. lacks sufficient data on the medicinal use of cannabis are simple — supply and quality. Plainly, there is not enough cannabis being grown by the University of Mississippi for meaningful research by NIDA. The quality of the cannabis produced is also objectively unsuited for medical research or rigorous clinical trials. Better quality cannabis and more easily accessible supply are greatly needed. Research is also needed to make better decisions about the myriad potential uses of cannabis and for better policy-making, including legislation and drug scheduling decisions. DEA’s attempted rulemaking would do nothing to solve either of those problems. In fact, it is more likely that these proposed rules would, in fact, obstruct research by leaving the most experienced cultivators on the sidelines.
Our most significant objection is related to the power grab by DEA. Plainly, a law enforcement agency should not be in charge of any aspect of this process. Instead, NCIA believes that one of the many qualified public health agencies in the federal government (i.e. Health and Human Services, National Institutes of Health, etc.) should manage all of the processes related to research into the medical benefits of cannabis, including making decisions about who might qualify to grow and sell the product to researchers. It is for this reason that we call for a complete withdrawal of this rulemaking. But, it’s not just DEA’s power grab that is causing consternation.
In promulgating these new rules, DEA has stated that it is bound by the dictates of an international treaty — the Single Convention — in how it licenses cultivators of cannabis for medical research. In doing so, DEA proposes new regulations that require licensed growers to transfer all of their output to DEA and, with limited exceptions, gives DEA exclusive control over the import, wholesale trade, and maintenance stocks of cannabis.
To our knowledge, compliance with the Single Convention has never previously been raised as a requirement to obtain a registration. While we believe that the adherence to international treaties is important, DEA’s new focus upon the Single Convention is curious, to say the least. In recent years, President Trump has not been shy about his opposition to international trade groups and security alliances. It is therefore rich to see the Administration relying upon an international treaty to justify the transfer of authority over cannabis production for research to law enforcement. There is, however, a simple solution: withdraw from the Single Convention and rejoin the Convention with a formal reservation opting out of the cannabis-related provisions of the Convention.
DEA’s proposed rule also specifically notes that it will consider prior compliance with federal (not state) narcotics laws (particularly the Controlled Substances Act) in granting or denying the registration. This threatens to exclude many of the nation’s most qualified applicants, namely, state-compliant cultivators. There is a great deal of complex technology and learned technique that goes into cannabis growing and extraction practices. The U.S. needs to leverage the expertise of growers with 20-30 years of experience, rather than relying on suppliers with limited experience growing cannabis. NCIA would prefer to see a greater emphasis on other factors, like compliance with state laws, expertise in growing cannabis, and demonstrated ability to grow research-grade cannabis.
Finally, the new NPRM provides that no new application for manufacture will be considered until all of the applications that were accepted for filing before the effective date of the rule have been granted or denied. Given the nearly four-year backlog of pending applications, this plan appears likely to cause further delays to much-needed research which could help Americans.
Andrew Kline is NCIA’s Director of Public Policy and a former federal prosecutor. He can be reached at andrew@thecannabisindusty.org
Pushing For SAFE Banking In The Next Coronavirus Relief Package
by Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations
For years, NCIA has been lobbying for the SAFE Banking Act. Now, as we adjust to our “new normal,” we are trying to make lemonade out of the lemons we’ve been given and see if some provisions of the SAFE Banking Act can be attached to the next coronavirus relief package.
To that end, last week ten cannabis advocacy and industry organizations sent a letter to congressional leadership urging lawmakers to include the Secure and Fair Enforcement (SAFE) Banking Act or similar language in the next pandemic relief package which would create a safe harbor for banks and other financial services providers to work with cannabis and ancillary businesses that are in compliance with state law.
Signatories included Americans for Safe Access, Global Alliance for Cannabis Commerce, Marijuana Policy Project, Minority Cannabis Business Association, National Association of Cannabis Businesses, National Cannabis Industry Association, National Cannabis Roundtable, National Organization for the Reform of Marijuana Laws, Policy Center for Public Health and Safety, and Safe and Responsible Banking Alliance.
The coalition wrote,
“In 2019, it is estimated that sales of cannabis in the United States topped $12 billion– the vast majority of which were cash transactions. Previously, this situation created an unnecessary public safety risk and undue safety burden on state and local tax and licensing authorities who must receive and process large cash payments. Now, as recent reports show that viruses can live on cash for up to 17 days, the public safety concerns of this cash-only system compound. The lack of access to financial institutions places industry workers, government employees, and the public at-large at risk as banknotes circulate from consumers and patients to businesses to government.”
Even the lead sponsors of the SAFE Banking Act weighed in. Senate lead Sen. Jeff Merkley (D-OR) told NCIA, “Locking legal businesses out of traditional banking services—leaving them with no option but to operate exclusively in cash—has long put workers in danger. And now in the face of this pandemic, it’s making it increasingly difficult for these businesses to keep their workers and customers safe while they fight to stay afloat. The SAFE Banking Act is more important than ever to these businesses and the families who rely on them, and I’m committed to doing everything I can to get it passed.”
Congressman Ed Perlmutter (D-CO) also weighed in, stating, “Cannabis businesses and their employees already face a significant public safety risk without access to the banking system, and the COVID-19 crisis has only exacerbated this risk with these essential businesses having to move their cash-only transactions outside the store. At the same time, many of these businesses are facing disruptions in their supply chain and in normal operations and they should be eligible for relief just like any other legal, legitimate business during this pandemic. I will continue to push for inclusion of the SAFE Banking Act or other forms of relief for this industry in the next package.”
The next coronavirus relief package is set to be unveiled any day. Here at NCIA, we remain cautiously optimistic that our concerns have been heard and will be addressed. Regardless, we continue to call, email, and video message with congressional offices and remain dedicated to providing relief for our industry.
Member Blog: Suggestions For Cannabis Economy Leaders As We Navigate the COVID-19 Crisis
As COVID-19 swept across the globe, shutting down countries, there was an unexpected side effect taking place in the cannabis economy. Many cannabis companies that may have made hiring or operational errors have used the pandemic as an opportunity for correction even as they are staying open and deemed an essential service. Companies who over-hired based on “what if” scenarios of possible growth have used this to exit or furlough unexpecting employees with little to no explanation why.
Working in the cannabis executive recruitment space for several years (and being in the people business for decades), this is heartbreaking to see and hear. New hires should be based on new and real business needs grounded in data and facts instead of staffing up because a company is hoping for amazing growth. Companies using this pandemic as a correction must be more transparent and human in their actions. Acknowledge and realize some employees are losing their jobs (sometimes after stellar performance reviews) with little to no severance and little explanation. However, we all can learn from this experience and make some changes to how we operate moving forward.
Treat people as you would like to be treated.
The impact of a bad employee exit has a trickle-down effect. There’s a lot more good to come from understanding that former employees, along with their family members, friends, and colleagues, are all potential consumers, investors, and future employees. The (relative) smallness of our cannabis economy should be further inspiration to behave accordingly towards others during this time of crisis. When an employee is let go in an unprofessional manner, it impacts the morale of those employees who are still with the company. Relationships matter. We’re not saying that there isn’t a need to let people go and make organizational changes; you’re still running a business. Look for ways to make an unpleasant experience more positive. Furlough some people instead of flat out laying them off, and then communicate a lot with them during the time they spend in that holding pattern for you. Evaluate performance over salary when deciding on cutbacks. Consider bringing in an Industrial Psychologist to speak with your remaining employees who are probably suffering emotionally and thinking they’re next on the chopping block. Offer more perks to show that you care. Reach out to those individuals who are no longer with the company and see how they’re doing. Offer to pay for resume writing services or actively connect them to career support services or recruiters.
Invest in a strategic HR or Human Capital position.
You need a dedicated strategic HR leader in your organization to help guide your company vs. simply hiring an HR body to keep you out of a courtroom and to keep your files organized! This is a critical role, often overlooked by young and growing companies. Employees are the most valuable (and only appreciating) asset in an organization, and they can make or break an organization. Companies spend a lot of time and money on M&A diligence, vetting strategic partnerships, etc. However, many miss putting the same consideration into their human capital management. Hiring, training, and retaining best-in-class talent provides some of the best ROI for any organization, and that requires an individual (or entire department) dedicated to the recruitment, onboarding, training, continuous employee relations activities, and ultimately increasing employee happiness and effectiveness.
Evaluate Everything
Every company is looking to save money and improve their operations. Take this time to evaluate your current operational partners critically. Are you paying too much in additional fees? Are you getting the ROI you expect? Use this time to interview and seek out new partners who might be a better fit. What are the pillars of your culture? Is your leadership team the right mix? Do you have the right people on board to steer you toward the culture and future you hope for? Who do you want to attract to the organization? You may need to take some time to reflect and make some adjustments to the culture or team members to build the company you aspire to be.
Moving forward, companies who survive this can come out on the other side with better processes for employee hiring, onboarding, training, management, and retention. Many of us are in this business for the love and respect of the cannabis plant. Cannabis is a great connector of people, and this is an opportunity for us all to shift our operations to pay tribute to that fact and to improve our human relations processes.
Bryan Passman is a father, a husband, a trailblazer, and Co-founder and CEO of Hunter + Esquire. My professional background before launching H+E was entirely in retained executive search for 18 years in MedTech/Pharma (15 yrs) and Food and Adult Beverage CPG (3 yrs). My deep knowledge of those highly regulated and nuanced industries has helped H+E significantly understand the needs and wants of our cannabis clients. My deep and genuine networks within those industries have helped us deliver that rare talent “unicorn” our clients desire to fit their particular needs. My client-first approach helps us provide a very customized, white-glove, headhunter treatment to client and candidate.
Protected: Webinar Recording: Fireside Chats – Staying Politically Engaged in the Age of Coronavirus
Webinar Recording: Communications Strategy During Times of Crisis and COVID-19
In case you missed it, watch this webinar recording from April 8. With the cannabis industry customer acquisition and service models disrupted by the pandemic, it’s critical to understand that what you do today will affect your business now and have a large impact on your future. Adjusting communications to focus on brand and strengthening bonds with existing customers will help you minimize damage and promote future growth.
In this webinar, crisis experts Jeanine Moss (Chair of NCIA’s Marketing and Advertising Committee) and Nicole DeMeo of Outfront Solutions will outline immediate and practical steps you can take to address crises before, during, and after they’ve occurred. They will provide specific recommendations for the cannabis value chain including cultivators, manufacturers, distributors, retailers, and ancillary businesses. Learn how to build trust and brand loyalty in times of crisis with customers, employees, directors, shareholders, and vendors so you come through with a strong platform for growth and knowing you’ve done all that you can for your stakeholders.
A (Mostly) Non-COVID-19 Legislative Update
by Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations
I don’t know about you, but it seems no matter where I look, everything is about COVID-19. And with good reason — many of us are still working from home, helping their families with distance learning, and overall dealing with the effects of the virus. That being said, this week I wanted to take a look at two pieces of cannabis legislation — non-COVID related — and update you on where things stand, since we’re already nearly halfway through 2020!
The SAFE Banking Act
Last September, the SAFE Banking Act became the first piece of cannabis reform legislation to ever pass out of the United States House of Representatives by an astounding bipartisan vote of 321-103. The first iteration of the bill, named the Marijuana Businesses Access to Banking Act, was introduced to the 113th Congress back in 2013 and has made a long journey to get to this point in the legislative process.
Now that the SAFE Banking Act has passed the House, its journey has continued in the more conservative, Republican-controlled Senate. However, just before Christmas, Senate Banking Committee Chairman Mike Crapo (R-ID) issued a press release detailing his opposition to cannabis policy reform — including the SAFE Banking Act as it’s currently written. In the release, Chairman Crapo said,
“I remain firmly opposed to efforts to legalize marijuana on the federal level, and I am opposed to legalization in the State of Idaho. I also do not support the SAFE Banking Act that passed in the House of Representatives. Significant concerns remain that the SAFE Banking Act does not address the high-level potency of marijuana, marketing tactics to children, lack of research on marijuana’s effects, and the need to prevent bad actors and cartels from using the banks to disguise ill-gotten cash to launder money into the financial system.”
Even now with COVID-19, NCIA is virtually lobbying for the SAFE Banking Act, or some of its provisions, to be included in the next coronavirus relief package. Before COVID-19, the all-cash situation cannabis businesses face created an unnecessary public safety risk and undue safety burden on state and local tax and licensing authorities who must receive and process large cash payments. Now, as recent reports show that viruses can live on cash for up to 17 days, the public safety concerns of this cash-only system compound. The lack of access to financial institutions places industry workers, government employees, and the public-at-large at risk as banknotes circulate from consumers and patients to businesses to government.
NCIA is continually working with Sen. Crapo, congressional and committee staff, coalition partners, and the bill’s cosponsors to ensure that all parties have the materials and information that they need in order to solve this pressing public safety– and now, public health– issue and pass the SAFE Banking Act into law!
The MORE Act
In November, by a vote of 24-10, the House Judiciary Committee approved the Marijuana Opportunity Reinvestment and Expungement (MORE) Act of 2019, or H.R. 3884. This bill was introduced by House Judiciary Committee Chairman Jerrold Nadler (D-NY) and currently has 73 cosponsors. This was the first time that a congressional committee held a vote on – let alone approved – a comprehensive bill that would make cannabis legal. Perhaps even more significantly, this bill recognizes and works to address the disproportionate impact prohibition has had on marginalized communities and people of color while helping to increase access and opportunity in the legal cannabis industry.
The bill still has a long way to go, though. While the House Judiciary Committee has passed the legislation, there are still six more congressional committees with jurisdiction over the bill, including the Energy and Commerce, Agriculture, Education and Labor, Ways and Means, Natural Resources, and Oversight and Reform committees. In January, the House Small Business Committee waived its jurisdiction over the MORE Act.
While the MORE Act does not contain an explicit regulatory structure for cannabis after it is descheduled, Chairman Nadler said in a press conference the day before the markup vote that it was possible amendments could be added to the bill as it moves through the House.
All that being said, it’s unclear what Congress’ schedule will look like for the rest of the year. The Senate returned to Washington yesterday, however, the House remains out of session as concerns about legislating in the age of COVID-19 remain. On top of that, 2020 is an election year, which complicates matters (and scheduling) even more. Regardless, I hope you can rest assured knowing that NCIA’s government relations team is working around the clock to advocate for the cannabis industry — whether that be banking reform, ending cannabis criminalization, or allowing for SBA relief. From D.C. to wherever you are, stay healthy!
Member Blog: 7 Places You’ll Find Mold In Most Cannabis Grows
In the battle against mold, there are three critically important questions.
Where is the mold coming from?
How did mold get there?
How did the mold travel to where it grew?
Answering these questions gives growers the power to mitigate mold, and the ability to pass total yeast and mold tests.
Know Thy Enemy
It helps to first understand what you’re up against. Understand first and foremost that mold is a living thing that starts and ends somewhere. Its spores travel to reproduce, just like a plant.
And it needs the right environment to flourish. Moisture and temperature have the biggest impact. But hosts that help it travel are also critical.
Process Over Point
Most indoor and greenhouse grows have dozens, if not hundreds of people working across the organization. From back office to packaging to production – you have people and places that impact the air quality and can act as hosts, ultimately, impacting spore counts.
These hundreds of interchangeable parts make it difficult to figure out the source of mold, so it’s critical to see it as a process.
Break your facility into seven core parts of a process, and start digging. Not literally, of course, but as a scientist would. Examine what might cause the issues by looking at variables and constants.
Look at these seven locations:
Mother Plants
Cuttings from Mother Plants (clones, propagation)
Vegetative Growth
Flower Growth
Trim Rooms
Immediate postharvest
Sometimes after dry and cure
Dry Rooms
Cure Space
Follow the plant through those places and test regularly to see where moisture or cross-contamination may be occurring.
This is a painstaking process, make no mistake. Mold develops over time, so you’ll need to spend weeks or months tracking the lifecycle of the plant.
You’ve Solved The Riddle, Now Solve The Problem
Of course, once you find the sources, mitigation through a solid Integrated Pest Management (IPM) program is critical. There are many methods for that, from cleaning and disinfection to HEPA filters, and more. You’re not in this fight alone, either. You can call solutions providers like ProKure for help or find a Certified Industrial Hygienist in your area.
Whatever you choose to mitigate with, just remember to start with the answers to those core questions. Any program will be much more effective with those in mind.
Bernie Lorenz, PhD, is Chief Science Officer for ProKure Solutions, where he applies an advanced chemistry background and passion for sustainability to make ProKure products approachable to cultivation professionals. As one of the industry’s most seasoned experts on ClO₂, Dr. Lorenz recently led the effort as technical contact for a new ASTM International standardaimed at establishing cleaning and disinfecting protocols for indoor and greenhouse cannabis cultivation facilities. Dr. Lorenz earned both his PhD and Masters in Inorganic Chemistry from New Mexico State University.
My journey into the cannabis industry did not follow the typical route and actually did not begin long ago. In February, just over five months ago, I was hired to be the COO at NCIA. Other than this whole COVID-19 thing, I’m really enjoying working with the talented and committed staff here at NCIA, meeting our members (mostly virtually), and generally learning about the intricacies of the cannabis industry.
I enjoy swimming, hiking, basketball, and travel, having lived or traveled to more than thirty countries. I’ve been practicing meditation regularly for the past fifteen years, with a recent emphasis on Zen. I try to do at least one 3-day retreat at the Crestone Mountain Zen Center every year.
Erin Lemmons is passionate about helping small businesses avoid the risk of legal challenges that many companies face as they navigate the growth gap from 1 to 150 employees. She is the Founding Partner of 
Working at NCIA has been one of the greatest experiences of my life. It has allowed me to marry my experiences in cannabis activism with my experiences running a business and building brands. This year we are celebrating the #10YearsofNCIA and looking back at all of the progress our movement has made over the last decade and it is truly remarkable to see how far we’ve come. 
Hello! My name is Jon Dinh and I work as the Membership Manager here at NCIA! I started my cannabis journey three years ago when I first tried cannabis legally in my home state of Colorado and completely changed my life for the better! 
Hi, 
I’m not going to lie, I had no idea what I was doing here or how I fit in, after all I was the first NCIA hire with a more structured association background as opposed to grassroots activism. Other than consuming cannabis occasionally I had no connection to the plant like the other staff did. They were long time activists and all had a personal story for their passion and what cannabis advocacy meant to them. I just needed a job.
“In fact, if we were able to have the Veterans Administration (VA) embrace medical cannabis, veterans would get better care because they could deal directly with their primary care physician, who is in the best position to give them appropriate advice. But sadly, the VA is caught with this federal restriction and they have a very narrow interpretation of what they can do, and how they can do it, and they simply do not permit their physicians to work with veterans to discuss and work with — let alone prescribe — medical cannabis.”
I was born and raised in the far south of Brazil, drinking yerba mate, listening to rock, going to the beach, and eating lots of BBQ! The war on drugs was fought hard in our streets, and we 
Sahar Ayinehsazian is an attorney in Vicente Sederberg‘s Los Angeles office, where she focuses on corporate transactions, cannabis banking, and regulations. With her specialized knowledge, Sahar helped to establish and currently co-leads Vicente Sederberg’s Banking and Financial Services Department. As a member of the National Cannabis Industry Association’s Banking Access Committee, Sahar also works on strategy and educational advocacy to enable state-licensed businesses to obtain accounts at depository institutions.
Kelsey Middleton is a Regulatory Specialist in Vicente Sederberg’s Los Angeles office, where she focuses on licensing and regulatory compliance. Kelsey is responsible for assisting a dynamic range of cannabis clients in obtaining state and local cannabis licenses, permits and approvals, and navigating the complex and rapidly evolving regulatory landscape of the cannabis industry. She routinely helps clients prepare the requisite applications and documentation for state and local licensing and permits, and facilitates communications with cannabis industry regulators to promote efficiency and compliance throughout the licensing process.
Coincidentally, I moved to Denver right after Colorado legalized the adult use of cannabis. That wasn’t the reason why I moved, although it definitely was a perk. I moved because I wanted a fresh start. I’d spent my whole life on the East Coast. First in a New Jersey suburb of New York City. Then on the west coast of Florida. After I finished school, I lived for a short while with my mom in very rural central Florida. It was horrible. Not a place for a young person. But it gave me time to think about what I wanted out of life. I knew I needed a change.
Democracy requires active participation. Of course, that starts with 
Bryan Passman is a father, a husband, a trailblazer, and Co-founder and CEO of 
Bernie Lorenz, PhD, is Chief Science Officer for ProKure Solutions, where he applies an advanced chemistry background and passion for sustainability to make ProKure products approachable to cultivation professionals. As one of the industry’s most seasoned experts on ClO₂, Dr. Lorenz recently led the effort as technical contact for
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