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.
Meet The Team: Morgan Fox – NCIA’s Director of Media Relations
This week marks my second anniversary working with the National Cannabis Industry Association, and with everything going on in the world, it very nearly slipped by me unnoticed. However, the occasion has given me an opportunity to reflect on the past and look to the future, both of which are truly motivating to me when it comes to the work we are doing in the present.
When I first came to NCIA, it was a very turbulent time for cannabis policy reform, the industry, and for me personally.
After working in the movement for ten years, I was very familiar with what the organization stood for and what it had accomplished. I was eager to join those efforts and pivot more into federal policy work after a wave of state-level victories and to help protect businesses that were responsible for so much innovation despite unprecedented challenges over the years.
It was also a very scary time: earlier in the year, then-Attorney General Jeff Sessions had rescinded the Cole Memo that had guided federal prosecutors in their hands-off approach to regulated (but federally illegal) cannabis businesses, and then-Rep. Pete Sessions’ prohibitionist tenure as head of the House Rules Committee had a firm stranglehold on any cannabis-related legislation in Congress.
This move just happened to coincide with the impending birth of my first child, which made me look at everything through a different lens and ask myself some hard questions. Was I making the right decision to continue working in a field that could get shut down at any moment? Was there any hope for positive change in the foreseeable future? Should I keep working in cannabis when there are other ways I can try to make a positive difference for future generations?
The answer to those questions was a resounding “yes” as I was soon to see repeatedly in the coming months. The feared federal crackdown on state-legal cannabis businesses never came. Congress once again approved a spending ban on targeting medical cannabis patients and providers. By the end of the year, both Jeff and Pete were out of their jobs, a Democratic takeover of the House of Representatives had created opportunities for real progress on cannabis bills, and voters in three more states had approved ballot initiatives to create regulated adult or medical cannabis markets. It was an interesting year, to say the least.
But I think one of the most important developments for me was getting more direct exposure to the people that work so hard to advance this vibrant and inspiring industry. From the people who risked their freedom and often their life savings to open businesses when the threat of arrest and forfeiture were commonplace, to those working every day to undo the damage of our disastrous drug laws and create fair opportunities in the industry for people and communities that have been most harmed by prohibition, I can safely say I’ve never met more passionate and dedicated individuals.
Practically every day I see developments and ideas that could have wide-reaching effects outside of cannabis. Social and criminal justice issues that are starting to become more central to cannabis policy are forcing us to reexamine many problems related to fairness and historical inequality in our society. The increasing focus on corporate responsibility and sustainability is creating a model for other businesses to follow at a time when we desperately need one. New innovations are improving health and wellness while paving the way for technologies, methods, and applications that have the potential to revolutionize agricultural and industrial fields.
I want my child to grow up in a world with laws that prioritize justice, freedom, and fairness; with businesses that care about their communities and try to make the world a better, cleaner, and healthier place. There is still a lot of work to do, but I know I am in the right place to help make that world a reality in my own small way. I can’t wait to see what the next ten years hold for NCIA.
Welcome to NCIA Today – tune in for our latest episode!
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 newly-launched NCIA #IndustryEssentials series. Webinars that arenʻt just about getting some big-name talking heads on a Zoom call. This new series provides insights you canʻt find anywhere else, from experts who will surprise and delight you with their in-depth knowledge on relevant industry topics.
We check in with NCIA Social Media Manager, Vince Chandler, to hear some of the recent highlights from the Internet about cannabis policy reform, cannabis & COVID-19, and more. Our resident digital expert also breaks down the ways that NCIA is looking to help our members improve their engagement and reach online.
Executive Director Aaron Smith joins Bethany on NCIA Today to discuss the unacceptable exclusion of cannabis from federal coronavirus relief efforts, especially surprising given that cannabis has been deemed essential. Join Aaron is calling Congress today and ask that they support The Emergency Cannabis Small Business Health and Safety Act.
Legal cannabis, for all of its promise, has failed – in some markets spectacularly – to live up to its economic potential. But while each self-contained state market faces its own combination of political and regulatory challenges, the core of the problem everywhere is basic economics. Legal markets exist to efficiently move goods from where they are best produced to where there is the greatest demand. But cannabis, straddling the line between emerging state regulation and the remnants of federal prohibition, has negotiated that legal chasm by violating the inviolable laws of supply and demand, with predictably disappointing results. Perhaps now, in the face of a disastrous recession, with legal and legalizing states in desperate need for jobs and economic stimulus, is the time to get it right by allowing licensed commerce between legal markets.
The inability to move cannabis across state lines creates myriad problems for legal cannabis market operators that have far-ranging effects for all stakeholders in the cannabis industry, from investors to employees down to the patients and consumers who use the end products. The hindrance to economic activity also slows economic growth, employment, and tax revenues to states that have legal cannabis sales.
Oversupply Vs. Undersupply
Oversupply of cannabis in states like Oregon, which has excellent growing conditions and a favorable regulatory environment, are completely artificial and created not by the true excess of cannabis, but by the current inability to export to more populous states. This oversupply causes prices to plummet, which benefits consumers in the short term but is disastrous for small and medium-sized businesses and has far-reaching impacts on the communities that rely on this agricultural cash crop. Long term, the effect of these artificially low prices is that small businesses fail and large businesses take their assets to scale, which reduces employment and revenues in the communities that produce cannabis and extract the profits for investors in the large firms. This reduces competition and diversity in the industry, which hurts the same consumers in the long run who briefly benefited from the low prices. This is not a theoretical or academic argument, as we have seen these exact dynamics play out in Oregon over the past three years, with a staggering failure rate and rapid consolidation across the industry. Hundreds of millions of dollars of local capital have been eradicated as small businesses funded by friends and family have been forced to sell out to larger operators just to cover the worst of their debts.
In states which experience undersupply of cannabis, whether due to poor growing conditions or unfavorable regulations (or both) prices rise, hurting legal customers and patients of state-legal operators right away. Businesses can ultimately suffer losses of potential revenue, even as prices climb when consumers turn to cheaper cannabis from the illicit market. This undermines the legal systems set up by these states and pushes consumers to less-safe, unregulated products. As consumers drift from the legal to the illicit market, again the small and medium-sized businesses that currently represent the majority of the industry become financially unsustainable will suffer most, with the same end result to cannabis stakeholders as an oversupplied market.
Meanwhile, the artificial boundaries make scaling a business nearly impossible without access to an unlimited pool of capital. If a company from Washington, for example, wished to scale up and access new markets, they would have to completely recreate their entire supply chain, and most of their administrative operations, equally increasing their overhead with physical space and labor, for each new state that they wanted to enter. Effectively, they would have to create a brand-new small business in each state instead of scaling their operations efficiently and just expanding sales efforts to new territories. This is complicated in the extreme, both logistically and financially. What is worse, those redundant operations will become completely obsolete when cannabis is de-scheduled and interstate commerce allowed. This will almost certainly lead to a mass lay-off in the cannabis industry for all multi-state operators seeking to consolidate their operations. This will improve their cost competitiveness and further accelerate price drops that particularly hurt small businesses and stakeholders across the industry.
In fact, the extreme difference between the current state of the industry and a future in which interstate trade is allowed creates perverse incentives to investment, as opportunities that may be attractive in the short-term will ultimately prove disastrous long term. For example, massive energy and water-intensive indoor growing operations would be needed for New York to supply its population locally, and those facilities would require billions in investment dollars. These investments would look fantastic if one could be assured that the current regulatory environment would not change. But, if de-scheduling or other federal action allows for interstate trade, these facilities would have only a few years to reap the benefits of high margins before having to compete on cost with cannabis grown outdoors in the fertile Emerald Triangle of Northern California and Southern Oregon, which can produce much larger quantities of high-quality cannabis with a fraction of the inputs.
Newly legal net consumption states like New York and New Jersey will struggle to match supply to demand for years after initial legalization, resulting in millions of dollars of lost revenue, lost employment opportunity, and lost tax collections as the state struggles to develop the capacity to meet demand in a place that has no history of large scale production. If states that have historically been net importers plan for interstate trade from the outset, they can have a thriving retail industry with fully stocked shelves by taking high-quality products from producer states like California, Oregon, and Colorado within months of being able to import. The rapid change from essentially no legal industry to a robust, rich, and diverse retail environment would provide immediate economic stimulus in the form of jobs, thriving small businesses, and tax revenues. If new states are forced to rely solely on cannabis that is grown, harvested, processed, and distributed within state lines, it could take many years to develop the full economic benefits that a legal market could bring to bear.
All of these issues can be avoided, or at least mitigated, by a shrewd approach to incremental interstate trade instead of an instantaneous switch from 25 or more siloed industries to one national, or potentially international, market. The dynamics of how different state regulations interact can be tested and worked out thoughtfully, allowing for a more seamless transition and a clear roadmap for federal regulation when cannabis is de-scheduled. Successful interstate trade on any scale, between even just two states, will clearly signal to investors that the future of interstate trade is of pressing urgency to incorporate into their investment strategy. An investor in New York could then focus on opportunities related to local product development with the promise that affordable raw materials would be available from California and skip investing in indoor agriculture. Consumers and patients in states that allow for trade across their borders will instantly have access to a wider array of products, and as the size of the market that the industry has access to increases the dramatic supply and demand swings will be dampened by a larger and more diverse base of both consumers and producers.
Ultimately, the purpose of markets is to maximize the efficiency and utility of the flow of goods. They should move from the places where they are cheapest to produce to the places where the demand is highest. This is most effective with commodities and consumer goods, like cannabis. The current restrictions against moving cannabis across state lines completely hobble the market’s ability to perform this critical function. The result is bad for producers, consumers, regulators, and state governments. Interstate commerce for cannabis means better markets for producers, more choice for consumers, and a massive economic stimulus for all participating states in the form of job creation and increased tax revenues.
Gabriel Cross is a Founder and CEO at Odyssey Distribution, LLC, a distributor for locally-owned craft cannabis producers and processors in Oregon. Gabe worked in the sustainable building industry for a decade before starting Odyssey and brings his experience with sustainability and systems thinking to his work in the cannabis industry. Odyssey manages logistics, sales and marketing for boutique producers so they can focus on creating great craft cannabis products for the Oregon market.
Gary Seelhorstof Flora California has a passion for developing high-quality cannabis products so their most therapeutic effects can be realized. His 25 years in pharmaceuticals and medical devices helps him bring scientific rigor to the cannabis industry. Gary is very active at both the State and Federal level as an advocate for policy reform/higher quality standards. He enjoyed lengthy stints at Eli Lilly and Pfizer (in clinical development and corporate development) and worked with several start-ups developing corporate and compliance strategies. Gary has a B.S./B.A. from UC San Diego in Biochemistry/Psychology, an M.S. in Clinical Physiology from Indiana University, and an MBA from the University of Michigan.
Committee Blog: First The Vaping Crisis, Now COVID-19 – A Cannabis Physician’s Perspective
The vaping crisis was first reported in June 2019. In October 2019, the U.S. Centers for Disease Control and Prevention (CDC) coined a new medical term describing the cases of severe pulmonary disease that have occurred among e-cigarette and vape users, E-Cigarette and Vaping Associated Lung Injury, or EVALI. EVALI’s primary cause was determined by the CDC to be vitamin E acetate contamination, mostly in illicit market vaping products, although research into this condition continues.
By the early fall of 2019, the National Cannabis Industry Association (NCIA) formed a Safe Vaping Task Force to respond to the crisis. Together with NCIA’s Policy Council, they released a white paper in January 2020 detailing information about vaporizer components, formulations, testing, governmental response, and recommendations for the industry.
As the COVID-19 health pandemic takes front and center stage on the world scene, vaping related issues and EVALI, becomes even more of a health concern as the novel coronavirus causes respiratory issues. While reported cases of EVALI are slowing down, this public health crisis still looms over us, and it’s been very challenging to fully solve this mystery illness associated with vaping e-cigarettes, and other electronic nicotine delivery systems (“ENDS”). Furthermore, it’s been more difficult to stop the primary root cause: the illicit market.
VAPING, EVALI, AND COVID-19
We’re experiencing a worldwide public health crisis with coronavirus and it’s also affecting the Marijuana industry, as we face “stay at home” orders, slower production or reduced access in some areas, and fear from the community about vaping related respiratory illnesses, EVALI, and death due to COVID-19. It begs the question: Is vaping safe and could vaping put you at greater risk of severe illness during this coronavirus pandemic?
Some health experts say vaping can increase the risk of developing COVID-19 complications and spreading the virus to others because many people share vaping devices. A Bloomberg articlewas published last month, stating the FDA says “vaping could compound health risks tied to virus.” The Attorney General of Iowa along with scientists sent the FDA a letter commenting that they should be more careful giving advice at a time like this, especially given “the pronounced difference in risk between smoking and vaping.”
The Food and Drug Administration (FDA) has supported both positions on vaping but now says there is a lack of evidence to support the worsening of health in conjunction with vaping and COVID-19, while also considering that underlying conditions could be the real culprit.
According to the CDC, those with chronic lung disease are at higher risk for severe illness. The conditions listed with the CDC do not include EVALI, but perhaps vaping behaviors should be considered when determining risk. I am a member of Doctors for Cannabis Regulation (DFCR), an organization that supports the legalization and use of cannabis. DFCR cautions against smoking and vaping during the COVID-19 pandemic because we just don’t have enough research yet.
After reviewing the limited literature, it must be noted that “e-cigarette use” and vaping have cardiovascular risks. Buchanan and colleagues reviewed the limited available preclinical and clinical data and concluded that “E-cigarette use is associated with inflammation, oxidative stress, and haemodynamic imbalance leading to increased cardiovascular disease risk.” Current evidence is available primarily from acute studies and the effects of chronic exposure remain an urgent research question.
PERSONAL PHYSICIAN RESPONSE
As an emergency physician, functional medicine specialist, and medical cannabis doctor, I’ve examined, certified, and managed patients for medical marijuana use in Michigan since 2014. As a cannabis physician, I routinely review cannabis-related science and research and its therapeutic effects, based on forms of consumption, frequency of use, and limited data on patient dosing. I evaluate patients for their therapeutic benefits and patient outcomes obtained by using marijuana in various forms of consumption, in conjunction with their other medications.
As a cannabis physician, I work very hard to get to the source of my patients’ medical issues or problems related to their medical need for cannabis. This also means giving them direction about the use of cannabis, cannabis products, and noting any side effects related to their method of consumption and use of marijuana, hemp, and CBD.
Perceiving the same thing as the general public, my patients frequently say, “I thought vaping was safe.” This is still the case even during this ongoing public health crisis with EVALI and now, COVID-19.
Pertinent health questioning should always involve asking patients about their forms of usage of cannabis, their daily intake, and noting if a person has any side effects related to cannabis usage or any other medications. Since vaping related illnesses were first reported, I continue to educate patients about the possible side effects of vaping. For some people, problems related to vaping may have been present since they started vaping, but were disregarded because they thought it wasn’t serious or of much concern. We need more research to better inform educational programs so patients and consumers can make better-educated decisions on which marijuana products they should use.
HEALTHCARE, THE CDC. AND COMMUNITY RESPONSE
“Do you vape? Do you smoke? Do you have an underlying lung disease such as asthma, chronic obstructive pulmonary disease (COPD, e.g. emphysema), heart disease, or any respiratory problems?” These are the most important questions doctors and healthcare providers should ask patients who present with respiratory symptoms, especially during the worldwide COVID-19 pandemic. All healthcare providers, whether on the frontlines or not, must change their assessment of patients to ask about their lifestyle and any respiratory-related health conditions (past and present). This includes addressing smoking, vaping, and potential side effects.
Patients often delay seeking treatment and the biggest challenge doctors face is that patients might lie about vaping out of fear they will be identified publically or criminally charged if they procured their vaping products from the illicit market. Doctors and other health care providers need accurate information to make a diagnosis and should maintain a non-judgmental attitude and confidentiality when asking patients about their lifestyle and social history.
Detailed information has been created by the CDC for ongoing updates regarding EVALI and related illnesses. Specific information for healthcare providers can be found here.
New tools for physicians include an updated algorithm for the management of patients with suspected EVALI and a Discharge Readiness Checklist. These documents are recommended for use by doctors, hospitals, clinics, and health care professionals and should be followed to help with systematic care and prevention. These tools have been used for EVALI. There have been major updates since the COVID-19 pandemic as of December 2019.
THE FUTURE OF EVALI: CONTAMINANTS AND CONSUMER RESPONSE
According to the CDC and available data, it appears that vitamin E acetate is primarily associated with EVALI, but there could be other substances that are responsible. We now know the illicit market is using vitamin E acetate to dilute their products, but they could use other harmful chemicals in the future. To reduce the risk of lung injury, consumers should purchase vaping products from the regulated market, where products are tracked and tested.
Because there is still so much research to be done, I recommend that anyone who continues to use e-cigarettes or vaping products should monitor themselves for symptoms related to EVALI and see a healthcare provider as soon as possible, especially if you are experiencing the symptoms below.
Patients have reported symptoms such as:
Respiratory symptoms, including cough, shortness of breath, or chest pain;
Gastrointestinal symptoms, including nausea, vomiting, stomach pain, or diarrhea; and
Nonspecific constitutional symptoms, like fever, chills, or weight loss.
Exposure to COVID-19, testing positive or hospitalized and placed on a ventilator
Some patients have reported that their symptoms developed over a few days, while others have reported that their symptoms developed over several weeks.
The American College of Cardiology also released Cardiac Guidelines for cardiac implications of COVID-19, which may mimic respiratory symptoms.
As I mentioned earlier, the FDA previously stated that vapers were at an elevated risk of developing complications tied to COVID-19. However, the FDA also admitted there is actually no “evidence” that vaping makes COVID-19 outcomes worse as noted in this article outlining the FDA’s stance on vaping and COVID-19.
So the jury is out and we are still waiting for evidence on the long term safety of vaping. Asa member of NCIA and the Scientific Advisory Committee, I believe that vaping and it’s long term effects due to acute and chronic exposure remains an urgent and ongoing research question. Is vaping safe, does vaping cause higher risk if you contract the novel coronavirus, and do synthetic flavorings, diluents, or possible contaminants within vaping devices cause harm? More research is warranted.
From The Hill: The Emergency Cannabis Small Business Health and Safety Act
by Morgan Fox, NCIA’s Director of Media Relations
Legislation to give legal marijuana businesses, which have been declared essential in a majority of states with regulated cannabis markets, access to resources being made available by congressional COVID-19 emergency response packages was introduced in the House of Representatives last week by Rep. Earl Blumenauer (D-OR) and Rep. Ed Perlmutter (D-CO).
The Emergency Cannabis Small Business Health and Safety Act would stop cannabis businesses and those that provide services to them from being excluded from further federal relief funding provided through the Small Business Administration (SBA).
Specifically, this bill would impact the following programs: Paycheck Protection Program (PPP), Economic Injury Disaster Loans (EIDL), and EIDL emergency grants. It would also protect SBA employees from prosecution for administering relief funds to cannabis businesses.
Under current policy, businesses that deal directly with cannabis production and sale, as well as many that provide services to them, are ineligible for most SBA programs. And the definition that the SBA uses to define which ancillary businesses are eligible is very vague. You can find a useful primer on federal relief eligibility from our friends at Vicente Sederberg LLP.
Let’s be clear: the fact that many cannabis businesses have been permitted to remain operating during this difficult time will not be enough to sustain the industry or allow for an effective and timely recovery once this nightmare is behind us. Lack of access to federal funds is just one of the many stressors facing cannabis businesses, which is why it is vital that we become eligible for relief as soon as possible.
Many indirect businesses have not been declared essential and have been forced to close. Cannabis businesses that have remained open must contend with declining sales, supply chain disruptions, onerous tax rates, lack of access to banking services, and the costs incurred by implementing additional health and safety measures to protect employees and customers.
Thankfully, the chorus of voices calling for fair access has been steadily growing. Earlier in April, Rep. Blumenauer and nearly three dozen of his colleagues sent a letter to House leadership urging them to make cannabis businesses eligible for SBA programs. Senators Jacky Rosen (D-NV) and Ron Wyden (D-OR) along with eight co-signers sent a similar letter to Senate leadership last week. They have been joined by cannabis industry advocates, the Marijuana Justice Coalition, the United Food and Commercial Workers International Union, state officials including Colorado Gov. Jared Polis, and others.
NCIA and our allies will continue to put pressure on Congress to treat cannabis businesses fairly during this crisis, but we need your help.
Please email and then call your congressional representatives today and ask them to support the legal (and essential) cannabis industry during this critical time. Talking points and instructions for calling your representatives are available on our website.
“Hi, I am calling/writing today to ask that you co-sponsor Congressmen Blumenauer and Perlmutter’s recently introduced Emergency Cannabis Small Business Health and Safety Act. This important piece of legislation would stop cannabis businesses and those that provide services to them from being excluded from further federal relief funding provided through the Small Business Administration. This current lack of access will undoubtedly lead to unnecessary layoffs, reduced hours, pay cuts, and furloughs for the workers of cannabis businesses who need support the most. As your constituent, I ask and urge that you sign on as a co-sponsor for this Act as soon as possible. Our industry, our businesses, and our employees cannot wait.”
The situation on Capitol Hill is extremely fluid as you might imagine. This bill could move forward as standalone legislation or could be incorporated into the next round of federal relief funds, which is being called CARES 2. Stay tuned for updates and be on the lookout for additional ways you can help us protect our essential industry.
Meet The Team: Tahir Johnson – NCIA’s Business Development Manager
With April 2020 marking a full year that I fully transitioned to working in the cannabis industry, it’s amazing to reflect on the past twelve months and the journey that brought me here. This time last year I decided to leave my job as an investment advisor for one of the largest banks in the country to turn full-time as a patient counselor at a medical dispensary in Maryland. I had started out there part-time but after just a few months I was certain that I had found my true calling in cannabis. The more I learned about policy, the medical benefits of the plant, and the history of the war on drugs the more I knew that I wanted to make a positive impact and to help shape the future of the industry.
My first inclination that cannabis could be a viable industry had come years earlier in 2013 when I was still a financial advisor and saw GW Pharmaceuticals, a company that produced a cannabis-derived prescription drug, issue its Initial Public Offering. I was aware that medical cannabis had been legalized in California and a handful of other states by that time but never imagined I would end up working in the space.
In 2018 shortly after Maryland introduced its medical program, my dad was diagnosed with an inflammatory disorder, and I recalled from a research report that I did in college that chronic pain was one of the top conditions that medical cannabis was used to treat. I encouraged him to get a medical cannabis recommendation and when he expressed concern, I offered to get mine as well to support him. Through that experience, I was introduced to the legal cannabis industry and began to pursue multiple opportunities from starting ancillary businesses and entering pitch competitions to applying for a license as a social equity applicant.
As fate would have it I also met Kaliko Castille in April last year when he was in town for MCBA’s Lobby Day. I already knew about everything NCIA does to advance and advocate for the industry and thought that a role at this organization would be a dream come true. I let him know that I had applied for my current role which was just recently posted, not knowing that as Head of Growth at the time, the position would be in his department. Thankfully, I must have made a great first impression.
With our Cannabis Business Summit taking place just weeks after I started at NCIA in July of last year, I was able to jump in feet first. Since then I’ve had the opportunity to interact with thousands of cannabis business owners and employees from every sector of the industry learning about their goals, success stories, and the challenges that they face. I’ve had the opportunity to see our Government Relations and Policy teams in action in Washington and interact with members of Congress. Nothing was more exciting than having a front-row seat as we watched the SAFE Banking Act, the first piece of stand-alone cannabis legislation pass in the House of Representatives, and knowing that I had worked alongside the team that made it happen!
Given my background in finance, I often think about the economic impact that COVID-19 has had not only on the U.S. economy, but the cannabis industry specifically. I am so proud to be a part of NCIA and the work that we are doing to make sure that #CannabisIsEssential; asking that congressional leadership address the exclusion of state-legal cannabis and ancillary businesses from the recently passed CARES Act and the way that we are supporting our members. In addition to our federal efforts, our new digital marketing options will help our members get exposure for their businesses during a time where social distancing has put most conferences and events on hold.
Over the past few weeks I’ve had the opportunity to speak with many of our members and I know that our industry is resilient and will rise above this crisis. I’m hoping that the pandemic is over soon enough to see everyone out at the Midwest Cannabis Business Conference on my birthday weekend, August 26-27.
Member Blog: A COVID-19 Guide For Cannabis Entities
As the fallout from COVID-19 ripples through the economy, cannabis businesses are once again faced with a plethora of conflicting information and uncertainty. As counsel to the NCIA and in service to its membership, Wykowski Law has put together a guide to the most common issues facing cannabis businesses in the wake of COVID-19. The guide focuses on national issues and focuses in on some issues specific to California.
Please check out the guide for more details, but here is a quick rundown of what you need to know as a cannabis business in the age of COVID-19:
As we’ve unfortunately become accustomed to, cannabis has largely been left out of relief efforts, particularly where the federal government is concerned. Like with anything cannabis, this means that we have to dig deeper and be more creative to survive.
What sort of help can cannabis businesses get from SBA, PPP, and EIDL? Are there alternatives?
Generally, the Feds are not going to let MRBs touch these funds. But don’t despair. There are potential alternatives at the state level (in California at least) including CalCAP, IBank, and JSLP. Of course, these programs present their own challenges for MRBs, but they do not categorically rule out lending to the cannabis industry.
What about taxes and tax relief?
Unfortunately, when it comes to the Feds we continue to live under the spectre of 280E which makes so many of the tax credits and relief potentially unavailable. There may be some strategies to take advantage of some of these programs, but they are largely dependent on your individual situation. Check with your tax expert!
Some of these regulations just aren’t practical during a pandemic. Are we really expected to comply?
There’s good news and bad news on that front. In California regulatory agencies are making some allowances including regulatory variances and allowing curbside pickups. But you have to get approval. Double (and triple) check what sort of regulatory relief your state is offering before deviating from any SOPs.
The bad news is that as an essential service in the age of COVID-19, many cannabis businesses are subject to additional health and safety requirements. California OSHA for instance has put out stricter standards for all businesses and we expect there might be more to come due to the nature of cannabis.
Times are tough, but not hopeless. And, all of the above is just the tip of the iceberg. The full guide goes into deeper detail. Of course, the information you obtain here and in the linked guide is meant to be informational only and is not, nor is it intended to be, advice legal or otherwise. For that you will need to talk to your lawyer and/or accountant.
Henry Wykowski is the founder of Wykowski Law a national cannabis law firm based in San Francisco that has represented the industry since its inception and successfully defended it in multiple landmark cases.
Meet The Team – Michael Correia, NCIA’s Director of Government Relations
The journey continues
It’s hard to believe that it has been seven years since I first started working for NCIA. I remember like it was yesterday when I saw the job advertised and thought, “this has got to be the coolest job in America” (which it is!). Being Director of Government Relations has afforded me the opportunity to grow personally and professionally, meet wonderful and exciting people, build something great, be at the forefront of a national movement, and make a little history at the same time. I wouldn’t change one day.
But, these are uncertain times. This COVID-19 pandemic will touch everybody, sooner or later (including myself), and I can’t help but think about those less fortunate than me. My thoughts go out to everybody during these trying times and know that we will only get through this by helping out each other. Although I usually don’t spend much energy reminiscing about the past, when the future is so exciting and limitless; I find it therapeutic and something to take my mind off the stresses we are all feeling.
A lot has changed since I first began my journey in 2013. We hadn’t even had our first legal sales (that would take place in Colorado in 2014). At the time, NCIA had four staff and about 300 member businesses and although the challenges were great, the uncertain future was exciting. Even though I remember thinking on my first day “okay, you have no staff, no budget, no office; where to begin?”
I always knew where I wanted to go.
My vision had 6 main points:
1. Increase the visibility, and acceptance, of the cannabis issue on Capitol Hill and the general public;
2. Bring professionalism to the cannabis industry;
3. Provide cannabis industry representation in D.C. equal to other industries;
4. Build up a government relations office we can all be proud of;
5. Succeed on the eventual federal legalization of cannabis;
6. Transition NCIA into a traditional trade association, post-legalization.
I knew this would not happen overnight, and I knew I wanted to do it right, no cutting corners, and so I took the long view.
I remember coordinating my first NCIA Lobby Days, where 30 brave souls ventured to D.C, now, well over 200 attend! I remember holding our Lobby Days training session in the back of a bar (nothing like learning how to lobby while drinking beers!), whereas now we use hotel ballrooms, provide breakfast, and have multiple speakers. I remember printing our Lobby Days meeting schedule on an Excel spreadsheet (feels like ages ago!), while now we use an app! I remember my first press conference and being too nervous to think straight.
I remember the Washington Post Style Section story on me, and riding the Metro the next day looking at people reading the paper with me on the cover! I remember CBS news following me around Capitol Hill, and having Gayle King give me a shout out! I remember attending marijuana working group meetings on Capitol Hill, when only a handful were interested in the issue, whereas now over 50 regularly attend.
I remember when Congress voted on the Rohrabacher-Farr amendment (that protected medical marijuana from federal prosecution), which won (a year before most people thought it would). I remember that vote, because it was the same day my daughter was born (running back and forth between Capitol Hill and the hospital!).
I remember hiring Michelle Rutter as my coordinator (who has been by my side for almost six amazing years). I remember moving into our first office (and not having to do business at Starbucks any more!).
I remember attending one of my first Congressional fundraisers and a Senator visibly backing away from me as we shook hands (as if I had the plague!). I remember the creation of the Congressional Cannabis Caucus (we were finally legit!).
And I remember the House passage of the SAFE Banking Act (my proudest moment so far!).
When I was hired, I had envisioned federal legalization taking 8-10 years. I am now in year seven and am still optimistic about my dream being realized in that time. Slow and steady wins the race. Legalization will not happen overnight. It will not happen this week, this month, or even this year. And legalization will not happen because “somebody else” gets involved. It will only happen if YOU get involved. Get educated on the issue. Support advocate organizations pushing for cannabis reform. Make donations to state legalization efforts. Join NCIA and come to our Lobby Days this September!!
Eleven states have legalized adult-use cannabis laws (which grows every election!). The support on Capitol Hill has never been higher. NCIA has almost 20 total staff, about 2,000 member businesses, and a beautiful Capitol Hill townhouse that members of Congress use for events. My phone rings off the hook with politicians wanting our money and endorsements. NCIA has most definitely “arrived.” I couldn’t be happier with the results we have achieved and prouder with what we have built. After seven wonderful years (and two amazing daughters), I am still lobbying for NCIA. The journey continues on…
Be safe everybody!
Action Alert: Tell Congress To Include Cannabis In The Next COVID-19 Relief Bill!
While we all continue to do our jobs to flatten the curve in the age of COVID-19, our lobbying team in D.C. has been hard at work on your behalf. We have been working every angle and are exploring any and all opportunities to provide relief for our industry.
The offices of Congressman Blumenauer (D-OR) and Senator Jacky Rosen (D-NV) have taken the lead on sending a letter to congressional leadership asking that they address the exclusion of state-legal cannabis and ancillary businesses from the recently passed CARES Act. But now, we need your help.
In order for these letters to be seriously considered by congressional leadership, we need to get as many members of Congress to sign on as possible. Please consider calling your representative and Senators today and ask them to sign on to the appropriate letter. You can find your member of Congress and how to contact them here.
“Hi, I am calling/writing today to ask that you sign onto Congressman Blumenauer/Senator Rosen’s letter to leadership. This letter asks that state-legal cannabis businesses have access to Small Business Administration programs to ensure they have the financial capacity to undertake the public health and worker-focused measures experts are urging businesses to take. This current lack of access will undoubtedly lead to unnecessary layoffs, reduced hours, pay cuts, and furloughs for the workers of cannabis businesses who need support the most. As your constituent, I ask and urge that you sign on to Congressman Blumenauer/Senator Rosen’s letter as soon as possible. Our industry, our businesses, and our employees cannot wait.“
COVID-19 Cannabis Coalition In Action: Securing Financial Relief
By Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations
In the age of COVID19, advocacy, activism, and lobbying have had to adapt and mobilize quickly, as have all professions during this difficult time. Last week, NCIA along with a group of coalition members teamed up to write and send nearly 100 letters to governors, state treasurers, and cannabis industry regulators letters asking them to help secure financial relief that cannabis businesses are being denied by the federal government amid the coronavirus outbreak.
Our coalition sent two letters: the first was delivered to state treasurers and governors and asked that they speak to their congressional delegations about including a provision in the next COVID-19 legislative relief package that would make state-legal cannabis businesses eligible for Small Business Administration (SBA) assistance. As state officials, they know that these businesses are a legitimate part of the local economy and community, creating good-paying jobs and providing what have widely been deemed essential services to citizens.
The letter also asked that these officials consider creating a state-based lending or loan guarantee program for cannabis businesses; specifically, the creation of a program to fill the gap created by cannabis business ineligibility for the SBA’s Paycheck Protection Program and Economic Injury Disaster Loans. Those programs provide short-term liquidity to businesses and workers to assist with operating expenses, healthcare costs, paid sick leave, other benefits required under federal relief packages, and to help out with ensuring business continuity in the event of an economic disaster. That letter was signed by NCIA, Cannabis Trade Federation, Global Alliance for Cannabis Commerce, Marijuana Policy Project, Minority Cannabis Business Association, and National Cannabis Roundtable.
The second letter was sent to state regulators of medical cannabis programs in eleven different states. Our coalition asked that these states:
Deem medical cannabis businesses essential
Allow home delivery with online and phone ordering
Allow curbside pickup from existing dispensaries, with online ordering
Allow doctors to issue recommendations and renewals via telemedicine
Temporarily eliminate or reduce caregiver application fees
Honor medical cannabis documentation within 90 days of expiration
Temporarily amend existing regulations to ensure adequate staffing
NCIA was proud to work with the same coalition aforementioned, as well as Americans for Safe Access and NORML to send those letters.
It appears that our efforts are not going unnoticed, either– we have received word from at least one state treasurer’s office that they will draft and send a letter on the subject to their congressional delegation. Other states are attempting to set up Small Business COVID-19 Relief funds. The Massachusetts Cannabis Control Commission also voted unanimously last week to send a letter to the state’s congressional delegation asking them to include the cannabis industry in future federal coronavirus aid packages. Massachusetts is notably the only state with a legal adult-use market — which reached $420 million in sales last year — to disallow those dispensaries from operating during this time. A number of dispensaries have since sued Gov. Charlie Baker (R-MA) to reopen the adult-use market.
In Colorado, Governor Jared Polis (D) wrote a letter to Congressman Jared Crow (D-CO), who sits on the House Small Business Committee. He urged the Congressman to do everything in his power to help this industry, writing, “In an ideal world, Congress would include a provision in an upcoming bill guaranteeing that all state-legal cannabis businesses, direct and indirect, will be eligible for these loans. In the alternative, I hope that you can at least work with your colleagues to ensure that Indirect Marijuana Businesses will be eligible for the loans.” Governor Polis also noted that this ineligibility “could have a devastating effect on our business community and tens of thousands of employees.” If you are a Colorado resident, we encourage you to reach out to the Governor’s office and thank them for their support.
That’s not all NCIA is working on, though — we are virtually lobbying congressional offices day and night to ensure that the next COVID-19 package includes relief for businesses involved in the cannabis industry. We are receiving positive feedback and will continue to explore any and every avenue to help our member businesses during this time. Wherever you are reading this from, I hope you, your family, and your business associates are all safe and healthy. We are still fighting for you in Washington, D.C.!
Meet The Team: Michelle Rutter Friberg – Deputy Director of Government Relations
by Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations
I grew up in rural King George County, Virginia, where I lived until I went to college. Let me just say: if you had asked me in high school where I saw my career going, I would not have guessed the cannabis industry! But, it turns out life had other plans for me.
When I began my time at James Madison University (go Dukes!), my major was undeclared. As time went on, I decided to study Political Science with a minor in History. I learned about our government, political theory, lobbying, and focused primarily on domestic politics. Working on all those papers and assignments for class during my undergraduate studies was where my knowledge of cannabis policy began.
When I was told one day that I could choose any topic to do a research project in one of my PoliSci classes, I somehow came across cannabis. It seemed too easy to write about — you’re telling me this drug is Schedule I but has never killed anyone? But from then on, every time I got to choose a topic, it was cannabis, so I began learning more and more. By the time I graduated, I had a decent understanding of the history behind prohibition, but my mind had turned to the same question everyone I knew was having: what was I going to do now that I had graduated? At the time, the Great Recession had unemployment close to 10%, so I did what many college-aged kids do: spent a month traveling around western Europe! Side note, my favorite city that I visited on that trip was Amsterdam, but not just because of the accessibility to cannabis!
When I came home, it was time to find a job. Eventually, I was lucky enough to be offered a job at a government affairs company in Alexandria, Virginia, where I researched state and local regulations for various clients. After a little more than a year, one of my coworkers mentioned in passing that a gentleman from the cannabis industry was coming in the next day to talk about our services. Before I could stop myself, I asked if I could sit in on the meeting. Lucky for me, they said yes, and that’s where the story of my career in cannabis began.
The gentleman who came in was (and still is!) NCIA’s Director of Government Relations, Mike Correia. While the company I worked for pitched him on their services, all I could focus on was Mike who elaborated on the incredible work NCIA was doing, about how he was a one-man government relations team and working from home. All I heard was: this guy is going to need to hire someone, and I knew it had to be me! After talking to my boss and getting his blessing to reach out to Mike, we set up a time to grab a drink and talk more about the industry. Lucky for me, Mike and I were like old friends catching up, and though NCIA didn’t have the budget at the time to hire another government relations staffer, he said he would keep me in mind. About six months later, NCIA was ready to expand the D.C. team and I applied for the job of government relations coordinator. Words can’t explain to you how happy I was when I received the offer to join NCIA’s team in October 2014.
A lot has happened since I was hired almost six years ago. Nine more states have elected to implement adult-use cannabis programs, and many others have opted to allow for medical marijuana or CBD. The way I was received on Capitol Hill with chuckles about “munchies” or “weed” are long gone, as NCIA and the cannabis industry are now received like any other business sector in D.C. We passed appropriations amendments in both chambers, planned many lobby days for our members, and passed the SAFE Banking Act out of the House of Representatives, just to name a few accomplishments. I went from government relations coordinator, to government relations manager, and worked hard to recently become NCIA’s deputy director of government relations. Not only that, but our government relations team has grown, and what was once just Mike, then Mike and I, has now become Mike, Michelle, and Maddy. The “3Ms” as we are often called are my best friends.
I remember thinking when I started with NCIA: what am I supposed to do now that I’ve gotten my dream job? Now, all these years later, I can tell you: I’m just getting started.
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“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.
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Gary Seelhorst
The vaping crisis was first reported in June 2019. In October 2019, the U.S. Centers for Disease Control and Prevention (CDC) coined a new medical term describing the cases of severe pulmonary disease that have occurred among e-cigarette and vape users, E-Cigarette and Vaping Associated Lung Injury, or EVALI. EVALI’s primary cause was determined by the 
With April 2020 marking a full year that I fully transitioned to working in the cannabis industry, it’s amazing to reflect on the past twelve months and the journey that brought me here. This time last year I decided to leave my job as an investment advisor for one of the largest banks in the country to turn full-time as a patient counselor at a medical dispensary in Maryland. I had started out there part-time but after just a few months I was certain that I had found my true calling in cannabis. The more I learned about policy, the medical benefits of the plant, and the history of the war on drugs the more I knew that I wanted to make a positive impact and to help shape the future of the industry. 
With our Cannabis Business Summit taking place just weeks after I started at NCIA in July of last year, I was able to jump in feet first. Since then I’ve had the opportunity to interact with thousands of cannabis business owners and employees from every sector of the industry learning about their goals, success stories, and the challenges that they face. I’ve had the opportunity to see our Government Relations and Policy teams in action in Washington and interact with members of Congress. Nothing was more exciting than having a front-row seat as we watched the SAFE Banking Act, the first piece of stand-alone cannabis legislation pass in the House of Representatives, and knowing that I had worked alongside the team that made it happen! 
I remember hiring Michelle Rutter as my coordinator (who has been by my side for almost six amazing years). I remember moving into our first office (and not having to do business at Starbucks any more!). 
I grew up in rural King George County, Virginia, where I lived until I went to college. Let me just say: if you had asked me in high school where I saw my career going, I would not have guessed the cannabis industry! But, it turns out life had other plans for me.