Immerse Your Business at #CannaBizSummit

by Madeline Grant, NCIA’s Government Relations Manager

The National Cannabis Industry Association (NCIA) will be holding its 7th Annual Cannabis Business Summit & Expo next month in San Francisco, California. From December 15-17, don’t miss the opportunity to network, engage with hundreds of exhibitors from the cannabis ecosystem, and immerse yourself in educational content. Also, you can discover the industry’s most exciting brands and next year’s best-sellers at the all-new BLOOM: A Brand Experience, debuting at #CannaBizSummit. For the first time at the nation’s most influential cannabis industry event, attendees will have the opportunity to see, touch, and smell products from dozens of brands specializing in flower, pre-roll, vapor, edibles, and more.

Are you a member of NCIA? Then use your benefits!

Depending on the tier of membership, don’t miss the opportunity to use your discounts and complimentary tickets for #CannaBizSummit.

Seeding members receive $100 discount on admission to NCIA trade shows
Blooming members receive five complimentary tickets to NCIA trade shows
Evergreen members receive ten complimentary tickets to NCIA trade shows

What educational content will be available?

Rest assured that there will be no shortage of educational content from speakers around the country. As the cannabis industry is ever-evolving, it is important to keep engaged and educated. This year, your ticket gives you access to all panel discussions and keynote sessions. You’ll get to join discussions on a range of subjects spanning cultivation, business services, licensing, compliance, retail, distribution, advocacy, and much more. Here are a few of the panel topics to check out:

Pathways to Federal Legalization: An Update from D.C.
Harmonizing Federal and State Cannabis Policy
Transparency, Values, Authenticity: The Principles for Successful Leadership
Wellness in Action: Elite Athletes as Cannabis Advocates

You can find the full agenda HERE.

What can you take home from #CannaBizSummit?

Founded in 2010, NCIA is the oldest, largest, and most effective trade association representing legal cannabis businesses. Through education and networking, you’ll discover new insights that help and grow your business all while meeting hundreds of industry professionals from around the country. With representation of all cannabis sectors and all business sizes, there is opportunity for attendees to gain invaluable knowledge.

Are you an NCIA member or interested in getting your business more involved?

Along with our annual trade shows, NCIA offers a wide range of membership benefits to help businesses become stronger, smarter, and more prosperous by working together to defend and expand the responsible cannabis industry.

I encourage you to meet with one of the NCIA staff in San Francisco to discuss how to fully utilize your benefits as a member. Membership with NCIA offers opportunities in marketing, business resources, policy, advocacy, networking, and education. Additionally, your support as members continues to propel our mission to promote the growth of a responsible, sustainable, and inclusive cannabis industry and work for a favorable social, economic, and regulatory environment. Please email Madeline@thecannabisindustry.org to set up a time to chat.

Are you interested in getting more involved in policy and advocacy work?

NCIA’s priority is to defend and advance the interests of the responsible cannabis industry in our nation’s capital. Central to our mission is the belief that our members should be treated fairly under federal law and that the cannabis industry much like any other legitimate business sector in this country. NCIA launched the Evergreen Roundtable for leading businesses looking to make a meaningful investment in shaping policy for the cannabis industry. Evergreen Member companies receive exclusive access to private briefings from members of Congress, inside information from NCIA’s government relations team, and many more opportunities to participate in the national conversation around cannabis policy. If your company is interested in supporting at this level please fill out the form HERE to set up a meeting with our Government Relations team.

Let’s Recap…

If you are an NCIA member, make sure you utilize your membership benefits. Find a refresh of your benefits HERE.
If you are not yet a member of NCIA and are interested in learning more please send an email to madeline@thecannabisindustry.org.
Don’t miss out on the opportunity to immerse your business and employees at #CannaBizSummit.
There is a lot of work to be done to ensure a value-driven, responsible cannabis industry and NCIA appreciates your support.

Video: NCIA Today – Friday, November 19, 2021

NCIA Deputy Director of Communications Bethany Moore checks in with what’s going on across the country with the National Cannabis Industry Association’s membership, board, allies, and staff. Join us every Friday on Facebook for NCIA Today Live.

Thoughtful Legislation: States Reform Act Introduced

By Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations

Recent polling from Gallup showed that an astonishing 68% of Americans believe that cannabis should be legal. And while support spans age groups and party lines, cannabis is usually thought of as an issue Democrats champion – but one woman is looking to change that.

This week, freshman GOP Congresswoman Nancy Mace (SC) officially threw her hat in the cannabis reform ring with the introduction of the States Reform Act. Notably, this is the second comprehensive cannabis bill introduced by a Republican member of Congress (the other was sponsored by Rep. Dave Joyce, one of the co-chairs of the Cannabis Caucus).

According to Rep. Mace’s office, here are some of the things the bill does:

Ensures that no state or local government will be forced to change its current cannabis policies by removing cannabis from Schedule I and deferring to states.
Regulates cannabis federally like alcohol under USDA for growers, ATF/TTB for cannabis products, and FDA for medical use.
Institutes a low 3% federal excise tax on cannabis products to fund law enforcement, small business, and veterans mental health initiatives.
Ensures the safe harbor of state medical cannabis programs and patient access while allowing for new medical research and products to be developed.
Outlines the federal release and expungement for those convicted of nonviolent, cannabis-only related offenses. This will not include cartel members, agents of cartel gangs or those convicted of driving under the influence (DUI). Mace’s office estimates that approximately 2,600 releases will be expected at the federal level. State level releases and expungements will be left to each state to determine.
Protects military veterans by ensuring they will not be discriminated against in federal hiring for cannabis use or lose their VA healthcare benefits.
Protects children and young adults under the age of 21 from cannabis products and advertising nationwide. Incentivizes states to make cannabis illegal for anyone under the age of 21, with a medical exception for prescribed use. Provides funding to the Substance Abuse and Mental Health Services Administration to ensure protections for minors are being considered.
Protects medical cannabis for the following uses: arthritis, cancer, chronic pain, sickle cell, HIV/AIDS, PTSD and other medical uses per a state’s specific cannabis regulations.

NCIA applauds Rep. Mace for introducing this new and carefully thought out piece of legislation. There are many provisions in the bill that we support: low tax rates and barriers to entry, allowing states to lead – but also many areas with room for improvement like those pertaining to criminal justice and trade. NCIA will continue to work with Rep. Mace’s office to improve this bill and attempt to find common ground across political parties in order to advance cannabis policy reforms.

NCIA Announces Incoming Board Members

The National Cannabis Industry Association (NCIA) is announcing a slate of incoming members of its Board of Directors today, including six incumbent Board members and two new nominees selected by the organization’s Nominating Committee to serve for the Board’s 2022-24 term.

The organization’s Nominating Committee selected six incumbent board members and two new nominees to serve on the board for the 2022-24 term.

The newly-selected board nominees are MadisonJay Solutions Managing Member and NCIA Policy Council Co-Chair Michael Cooper and The People’s Ecosystem CEO and Chair of NCIA’s Diversity Equity & Inclusion Committee, Christine De La Rosa.

Six incumbent Board members were also re-elected for another term: current board chair, Khurshid Khoja; board secretary, Chris Jackson; board treasurer, Narbe Alexandrian; Cody Bass; Omar Figuero a; and Liz Geisleman.

“We’re pleased to welcome the new and returning members for the next board term. Their leadership will be instrumental in advancing our vision for a legal, well-regulated, and inclusive cannabis industry,” stated NCIA CEO, co-founder, and Board member Aaron Smith.

As the longest running trade association for cannabis businesses, NCIA has been advocating on behalf of the cannabis industry since 2010. The organization has always maintained a transparent and representative leadership selection process in order to reflect its diverse membership, composed primarily of small businesses in the burgeoning industry.

“As the only broadly representative trade association representing the cannabis sector at the national level, we will always lead with integrity and advocate for the policies that are best for the industry as a whole, not just a handful of operators,” continued Smith. “That means always standing up for policies based in equity, restorative justice, inclusive markets, and against protectionist policies such as arbitrary license caps. I’m confident our board will continue to exemplify those core values in the year ahead.”

The incoming slate of Board members will join directors already serving on the Board for the 2021-23 term. The full list of current Board members and their bios is available here.

Bringing the Beltway to the Bay at Cannabis Business Summit & Expo

by Madeline Grant, NCIA’s Government Relations Manager

There is no doubt that we’ve missed the in-person, one on one interactions in the cannabis industry. For anyone that attended the Midwest Cannabis Business Conference in Detroit in September, it was refreshing to connect with friends and meet new friends in the cannabis industry. Fortunately, we have the chance to meet in person again at the 7th Annual Cannabis Business Summit and Expo (CannaBizSummit) in San Francisco, California. From networking with California-based cannabis companies to meeting new companies in the industry, there is no lack of connections to make at CannaBizSummit.

Pictured Right: NCIA member Sonny Antonio with Sunshine Design and I at MJBizCon at NCIA’s booth.

The National Cannabis Industry Association (NCIA) has been hard at work in Washington, D.C. With the introduction of the Cannabis Administration and Opportunity Act draft legislation, there had been an undeniable excitement to support momentum towards cannabis policy reform. The Government Relations team submitted comments to the sponsoring offices on behalf of NCIA’s members and will continue to work to support members’ best interests. We appreciate your support of NCIA and the missions we continually work to achieve.

At #CannaBizSummit there will be opportunities for educational panels on federal cannabis policy and opportunities to connect with cannabis professionals in all sectors of the cannabis industry. Below are just a few of the education panels and “Lightning Lessons” that will be taking place throughout the conference:

You can find more information and details on the agenda and sessions HERE.

NCIA is honored to welcome our 2021 #CannaBizSummit Keynote Speaker, Troy Datcher, CEO of The Parent Company. Leading a new generation of c-suite innovators, Chief Executive Officer Troy Datcher, together with Chief Visionary Officer Shawn “JAY-Z” Carter, helms a cannabis business for the post-prohibition era The Parent Company. Combining best-in-class operations with leading voices in popular culture and social impact, the company focuses on building brands that will pave a new path forward for a legacy rooted in equity, access, and justice.

Beyond the panels and educational resources, attendees will be able to meet others from around the country. From cannabis cultivators to cannabis retail owners, there is no shortage of potential to network. At NCIA, we continue to support our members’ best interests by providing a continued understanding of the political landscape of cannabis policy reform. It’s our goal to support value-driven reform and support a responsible cannabis industry. Remember, if you are an NCIA Blooming or Evergreen member, you have a number of complimentary tickets to our trade shows.

If you have any questions regarding your membership or the CannaBizSummit please reach out to me via email, Madeline@TheCannabisIndustry.org. There is a lot to be excited about this year and I hope to see you out in San Francisco this December!

Honoring Our Veterans – Cannabis Research and Legislation

by Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations

Every November, Americans around the world honor our armed service members on Veterans Day. While the holiday first appeared after the conclusion of World War I in 1918 as Armistice Day, it was later renamed Veterans Day in 1954. This week, we’re remembering all the veterans in our lives (shoutout to my Dad, a Navy veteran!) and providing you with the latest update on cannabis and veterans legislation from D.C. Let’s take a look to see what’s been happening:

H.R. 2916: VA Medicinal Marijuana Research Act

Sponsored by Congressman Lou Correa (D-CA), this bill would require the Department of Veterans Affairs (VA) to conduct clinical trials of the effects of medical-grade cannabis on the health outcomes of covered veterans diagnosed with chronic pain and those diagnosed with post-traumatic stress disorder. Covered veterans are considered as those who are enrolled in the VA health care system. The trials must include a control group and an experimental group that are of similar sizes and structures and represent the demographics of the veteran population, and the data collected in the trials must be preserved to facilitate further research. Importantly, under this bill, participation in the clinical trials does not affect a covered veteran’s eligibility or entitlement to other VA benefits.

The bill had a hearing in October where Dr. David Carroll, Executive Director at the Office of Mental Health and Suicide Prevention at the Department of Veterans Affairs (VA) essentially testified that the VA does not support this bill. I’d also like to highlight the statement Rep. Correa submitted for the record, which you can find here.

Most recently, just last week, the House Veterans Affairs Committee held a markup on the bill, where it passed by a vote of 18-11. It was a party line vote with just one Republican, Rep. Mariannette Miller-Meeks, voting in favor. Now that the bill has passed out of committee, its next stop could be the House Floor – stay tuned!

NDAA, cannabis, and veterans

As you may know, there’s been much discussion around cannabis policy and the upcoming must-pass NDAA. While we’ve already expanded upon that concept as it relates to banking, more recently, there’s been developments surrounding the NDAA, cannabis, and veterans. Late last week, Sens. Brian Schatz (D-HI), Bernie Sanders (I-VT), Tim Kaine (D-VA), Jeff Merkley (D-OR), Ron Wyden (D-OR), Jacky Rosen (D-NV), Alex Padilla (D-CA) and Gary Peters (D-MI) filed Schatz’s Veterans Medical Marijuana Safe Harbor Act as an amendment to the larger package. This amendment would federally legalize medical marijuana for military veterans who comply with a state program where they live and allow physicians with the U.S. Department of Veterans Affairs (VA) to issue cannabis recommendations. Further, it would require VA to study the therapeutic potential of marijuana for pain and reducing opioid misuse. Under current federal policy, VA allows its physicians to talk about cannabis use with veterans, but they’re prohibited from issuing recommendations that would allow their patients to obtain medical marijuana from state-legal markets.

It’s unclear whether either of these provisions will be enacted into law, however, we applaud our congressional champions for never forgetting about those who have served. NCIA will continue to lobby in favor of legislation that will provide our veterans with relief. Do you have a veteran in your life you’re honoring this week? Hop over to NCIA Connect and let me know!

Video: NCIA Today – Friday, November 5, 2021

On the latest episode, Bethany announces the keynote speakers at #CannaBizSummit this December in San Francisco, shares a bit about Exspiravit this month’s Member Spotlight recipient, and covers compliance and extraction.

Registration to the Cannabis Business Summit in San Francisco is now open with special limited-time super early bird pricing on tickets available, head to our website for more information today.

Allied Association Blog: Memories of the Campaign for Prop 215

by Kharla Vezzetti, California NORML

I’ve been helping with the preparations for California NORML’s upcoming 25th Anniversary of Prop 215 Conference and Afterparty occurring this Friday, November 5, 2021.

Scanning my collected newspaper articles from the era for our slideshow has really brought back memories of my early activist days working toward The Compassionate Use Act of 1996, commonly referred to as Prop 215.

The year was 1995…

Those were the days when you had to say “water pipe” not “bong” for fear of being kicked out of a head shop. I once had a pipe shop refuse to carry hemp lip balm citing that it would imply that their pipes were being sold for marijuana use. Even some in the hemp industry were opposed to associating marijuana with hemp. That said, there were supporters of medical marijuana, and some who just needed education.

I was 24 years old and my relationship with the cannabis plant had been purely recreational. Then I made a new friend, Alan Silverman, who introduced me to a community (and career path) that changed my life. He took me to a screening of a new film, “The Hemp Revolution.” It was an eye-opening event with the director in attendance, and notably several Sonoma County businesses selling their industrial hemp wares. I was deeply inspired, not having known the history and multitude of uses of the plant. I joined the hemp industry with the contacts I met that night, distributing their wares to local shops and tabling at festivals and markets. It was more of a public education service than a profitable business, as many were not familiar with the hemp plant and some saw it as an excuse to promote marijuana. I transitioned into a day job with HempWorld, an industry magazine. These were fun years even if we were ahead of our time.

Which comes first?

Alan also told me about a state initiative campaign that was in the planning stages and educated me on the medicinal uses of marijuana. I had previously studied ecology, the idea that our environment has countless symbiotic relationships between lifeforms fascinated me. So, learning about the fiber, oil, and seed of the hemp plant while also gleaning information about medicinal benefits of marijuana just strengthened my impassioned advocacy for both. I felt at the time that consumable marijuana would need to be destigmatized before industrial hemp would ever have a chance.

Allies!

I joined the volunteer group which we at first called “Sonoma County Chapter Californians for Compassionate Use” to match the name of the state-level group behind the current campaign. The term “compassionate use” was not so well known; when I set up our voicemail, the representative thought we were advocating for “Compassionate Youth.”

Being our media liaison, a news reporter from the local TV station called me one morning. The story we had discussed fell through and he asked if there was anything else he could cover. In a few frenzied hours, I was able to find an oncology nurse from a local hospital willing to be interviewed in support of medicinal marijuana. She led me to a medical marijuana patient she knew, who introduced himself to me on the phone by saying, “I’ve been HIV positive for ten years, and I’m fat!” He wanted to be interviewed, too. Enough local activists joined us that afternoon in front of our County Board of Supervisors chambers to fill the camera frame. The nurse requested her interview be conducted apart from the activists, as to not appear a part of our group, which was better optics for our message. She was being brave and outspoken.

We made up small binders with recent news pieces supporting medical marijuana and sent them out to all our local media contacts. We included a commentary published in the Journal of the American Medical Association, an editorial from The Lancet, along with a Universal Press Syndicate piece by William F. Buckley, Jr, and a Cannabis Canada article, “Cannabis Buyers’ Club Flourishes in ‘Frisco,” written by Rose Ann Fuhrman, a fellow local activist and writer. The soon-to-be iconic red cross with overlayed green leaf image was printed for the covers of the binders.

Education was Essential

The cross and leaf image for the movement so effectively portrayed the topic, some of us, while gathering signatures, simply wore 11 x 8.5” signs with this image around our necks to gather attention of potential signers.

All in all, Sonoma County was an easy place to gather signatures on this issue. Rather than approach people individually, I’d stand in a trafficked area and repeat the same spiel, it was along the lines of “Sign the medical marijuana petition, it helps with epilepsy, multiple sclerosis, chemotherapy, glaucoma…” I remember one man who walked right past me into a grocery store parking lot, only to turn around when I verbalized the ailment that affected his family member. Another signer who stood out was attending a concert. He walked up to me in the free speech zone between the parking lot and the venue. Signing his name, he said, “I’m a cop. I’m tired of the hypocrites.”

The local coverage that I was most excited about occurred on Friday, November 1, 1996, four days before the election. Elvy Musikka had been traveling around California speaking in favor of Prop 215. Elvy was interviewed by The Press Democrat newspaper about being one of eight people in the United States who not only could legally smoke marijuana, but also was being provided joints by the federal government. The story ran with a large photo of Elvy smoking a legal joint in my living room. Elvy will be speaking at the Cal NORML conference.

Meeting Dennis

Another inconsistency with what most knew at the time was the existence of the San Francisco Cannabis Buyers’ Club. Founded by Dennis Peron, who also wrote San Francisco’s Prop P, this ground-breaking club was raided by the DEA, but enjoyed great local support. Prop P passed by 80% of San Francisco voters in 1991, basically making marijuana possession and cultivation the lowest priorities for law enforcement. Dennis, who passed away in 2018, is a legend in the world of medical marijuana. I had the unexpected experience of meeting him when Rose Ann and I went to his club to pick up the initiatives for our group to collect signatures. We all had barely begun when informed that the first initiatives had a printing error and needed to be replaced. We had car trouble in the city and Dennis invited us to stay overnight in the club, an historic experience I relish. Dennis will be represented at the 25th Anniversary event via a recorded statement and through his family members, Jeff and Bryan Peron.

It was an exhilarating time for me, I met many truly impressive activists, authors, and businesspeople who were inspired to make the world a better place. I felt I was making the world a better place. Ellen Komp, one of my co-workers from my years with HempWorld, went on to become the Deputy Director for California NORML, she hired me onto the organization in 2017. For the 25th Anniversary of Prop 215 events this week, I will be celebrating with many of the folks who made 215 possible. I hope you’ll join us in honoring the history that launched the modern industry.

Kharla Vezzetti is the Business Membership and Advertising Manager for California NORML, a non-profit, member-supported organization that has been advocating for sensible and fair cannabis laws since 1972. She can be reached at kharla@canorml.org

Equity Member Spotlight: Exspiravit LLC

This month, NCIA’s editorial department continues the monthly Member Spotlight series by highlighting our Social Equity Scholarship Recipients as part of our Diversity, Equity, and Inclusion Program. Participants are gaining first-hand access to regulators in key markets to get insight on the industry, tips for raising capital, and advice on how to access and utilize data to ensure success in their businesses, along with all the other benefits available to NCIA members.

Tell us a bit about you, your background, and why you launched your company.

My name is Michael Webster, and I am the Founder & Managing Member of Exspiravit LLC, a licensed Michigan cannabis company. I earned a bachelor’s degree from the Harvard Extension School in Liberal Arts, and a master’s degree in Composition and Rhetoric from New York University. As a native New Yorker, I tried to wait patiently for cannabis legalization at the state level, but Michigan represented a unique entry point to the regulated market.

Like many NYC kids, my introduction to cannabis occurred at an early age. It was part of the local culture. However, it wasn’t until my late teens that I indulged. And it was even later, when my mom – a fierce cannabis advocate – was diagnosed with breast cancer, that I was introduced to the medicinal benefits of cannabis. I went on to write my graduate thesis on this very topic. From there, I embarked on my cannabis career path.

I launched Exspiravit for a myriad of reasons, not the least of which was to access a burgeoning market that held such promise for the creation of generational wealth. But as a frontline victim of the war on drugs – a simple possession charge of less than a gram of cannabis that temporarily derailed my academic pursuits – I saw an opportunity to educate and destigmatize this amazing plant, that, up until about 80 years ago, had been a staple commodity in human society.

What unique value does your company offer to the cannabis industry?

We are currently deploying our Cannabis Event Organizing license for consumption events throughout the state of Michigan – both large and small – while we raise capital for the build-out of our solventless extraction lab. We believe in clean plants and derivatives and are working closely with the Cannabis Certification Council on securing the “made with organic flower” seal. The event organizer license has proven the perfect complement to our other ventures, as it has allowed us to redefine what “an event” really is, and to take our show on the road. We also offer consultancy to other social equity and small operators, with a focus on regulatory compliance, helping to share what we’ve learned on our journey.

What is your goal for the greater good of cannabis?

When it comes to our company values, Exspiravit advances a unique position on social equity. For far too long, social equity has been considered a gift or non-transactional offering. We at Exspiravit believe equity – social or otherwise – is earned and therefore OWED. Most current social equity initiatives in the cannabis industry broadcast messages of handouts and favors. This is the wrong message. When accessing the equity in your home, or other assets, neither you nor the bank treats those transactions as gifts. Social equity represents a debt owed from those who have weaponized their racial or class privilege to monetize a commodity market that was built on the willful destruction of black, brown, poor white, and otherwise marginalized communities. Debts are owed. Debts are to be paid. And their payment represents the satisfaction of an obligation and not a benevolent gesture.

Quite the opposite, those tapping equity are claiming what is rightfully theirs. Again, equity is earned, accrued, developed, and owed, but certainly not to be asked or begged for. Exspiravit plans to use its voice to correct this adversely impactful interpretation of social equity, in hopes of realigning access to resources in the regulated cannabis sector. In addition to our work on the social equity front, Exspiravit’s goal for the greater good of the cannabis industry is to advance the for-purpose market. We believe that flower and euphoria only represent the tip of the iceberg when it comes to products and outcomes. We envision an ultra-specific and ultra-targeted market that features purpose-driven derivatives for a highly informed consumer.

What kind of challenges do you face in the industry and what solutions would you like to see?

Like many social equity cannabis operators, accessing capital has been our greatest challenge. And this challenge is intrinsically linked to our greatest criticism of social equity initiatives –- the lack of social equity funding. For social equity applicants, the process can be grueling. And for those of us who make it through to licensure, being greeted on the other side by predatory investment opportunities exacerbates our challenges. Social equity initiatives MUST feature a robust social equity fund. Without it, social equity operators are being positioned for failure. Diversion of existing tax revenue or special taxes levied against large and multi-state operators can easily address these challenges. Too, we would like to see more collaboration than competition. Regulated cannabis markets should be rolled out in ways that foster greater opportunities to collaborate. Support for collectives, and other similar strategies, are low-hanging fruit when it comes to solutions.

Why did you join NCIA? What’s the best or most important part about being a member of the Social Equity Scholarship Program?

We joined the NCIA for a variety of reasons. Firstly, it was accessible. Through its outreach, the NCIA met us where we were and provided us a robust package of resources that weren’t intended to lure us into paid membership, but rather to help us stand up and be able to recognize the benefits of such association. You can’t effectively inform a starving, homeless, injured person until you have fed, housed, and rendered aid to them. And that appears to be the NCIA’s philosophy – meet the immediate, pressing needs of social equity operators, positioning them to then effectively and efficiently access industry resources. The perfect example of this strategy is NCIA’s decision to offer one year of complimentary membership to social equity operators, including access to the national and regional conventions. The value here, to one’s first year of operation, is immeasurable. These events have provided the opportunity to forge important and lasting connections with other industry stakeholders that have made all the difference for us. Without question, we would not be enjoying such forward progression without the genuine efforts of the NCIA.

Video: NCIA Today – Friday, October 29, 2021

On the latest episode, Bethany announces the keynote speakers at #CannaBizSummit this December in San Francisco, checks in with some spooky, chilling tales of compliance gone wrong, and checks in with NCIA Deputy Director of Public Policy Rachel Kurtz-McAlaine about some serious slowdowns in the vape sector.

Registration to the Cannabis Business Summit in San Francisco is now open with special limited time super early bird pricing on tickets available, head to our website for more information today.

The PACT Act Final Rule Has Been Released Prohibiting the Mailing of Cannabis/Hemp Vaporization Products. Is Your Business Ready?

By Rachel Kurtz-McAlaine, NCIA’s Deputy Director of Public Policy

After months of delay, the United States Postal Service (USPS) has released its FINAL rule enforcing the Prevent All Cigarette Trafficking (PACT) Act, effective October 21, 2021, and unfortunately, they are indeed applying it to cannabis/hemp vaporization products. The PACT Act has now made it extremely difficult for anything related to vaporization to be mailed, either business to business (B2B) or business to consumer (B2C). Your business could be affected even if you are not mailing out products. Although this is a massive burden on the cannabis/hemp vape industry, there are ways to deal with it. NCIA remains vigilant in making sure the federal government understands this unnecessary hardship to the industry, and making sure our members are fully educated on this issue.

What is the PACT Act?

The Prevent All Cigarette Trafficking (PACT) Act went into effect June 29, 2010, applying strict regulations to the mailing and taxation of cigarettes and smokeless tobacco products, effectively banning the mailing of cigarettes unless authorized by an exception. With the rise of e-cigarettes, especially their popularity among youth, Congress decided that vaporization products should be included in those provisions. On December 27, 2020, Congress modified the definition of “cigarettes” to include Electronic Nicotine Delivery Systems (ENDS), broadly defining ENDS to include nearly all vaporization products, regardless if they contain nicotine or are used for nicotine. Specifically:

“(1) any electronic device that, through an aerosolized solution, delivers nicotine, flavor, or any other substance to the user inhaling from the device; and (2) any component, liquid, part, or accessory of an ENDS, regardless of whether sold separately from the device.”

When the USPS issued their notice of proposed rulemaking, they received more than 15,700 comments, with many expressing frustration with the broad interpretation of ENDS, so the USPS delayed issuing FINAL rules while it considered the practical application to the unique cannabis and hemp industries. NCIA was proud to submit comments with a broad coalition and to issue an action alert to get our members to express their concerns.

In the meantime, the USPS issued a guidance document (“April 2021 Guidance”) (86 FR 20287) to help prepare businesses for the final rule and what documentation will be needed to apply for an exception. The exceptions include:

Intra-Alaska and Intra-Hawaii Mailings: Intrastate shipments within Alaska or Hawaii;
Business/Regulatory Purposes: Shipments between verified and authorized tobacco-industry businesses for business purposes, or between such businesses and federal or state agencies for regulatory purposes;
Certain Individuals: Lightweight, non-commercial shipments by adult individuals, limited to 10 shipments per 30-day period;
Consumer Testing: Limited shipments of cigarettes sent by verified and authorized manufacturers to adult smokers for consumer testing purposes; and
Public Health: Limited shipments of cigarettes by federal agencies for public health purposes under similar rules applied to manufacturers conducting consumer testing.

18 U.S.C. 1716E(b)(2)-(6). These exceptions are the ONLY way to mail these products moving forward. Unfortunately, the USPS was not accepting applications for exceptions until the final rule was published, but now that it has been published, it is time to apply for an exception.

FedEx and UPS have already banned delivering these products, so they are out as an alternative.

How can it affect me?

If you manufacture, sell, or buy vapor products, you will be affected. Manufacturers and distributors who use the mail to get their products to stores for resale (B2B) will have to apply for an exception through the USPS Pricing and Classification Service Center. If you are a business receiving these products, you will have to work with the business that mails it to you to be included in their exception as a recipient. If you are a retailer who delivers vaporization products to consumers via the mail, such as online retailers (B2C), you will also need to apply for an exception. If you buy the end products as a consumer, expect an increase in price because of the extra costs placed on the suppliers.

What should I do?

If your business has ANYTHING to do with the manufacture, delivery by mail, or retail of cannabis/hemp vaporization products, including liquids, batteries, empty cartridges, etc., you should get familiar with this final rule that is in effect as of October 21, 2021. The USPS spends the time addressing potential issues or suggestions from the comments it received, so any questions of why they did something are probably answered there.

You will also want to read the guidance document the USPS issued in the Spring that details if you qualify for an exception and how to apply for it. This will require cooperation between the mailer and the recipient, so make sure you are working with your supplier/retailer to get all the necessary information.

What is NCIA doing?

NCIA remains committed to making sure our members understand all of the legal ramifications and how to continue operations despite this rule. We continue to work with our coalition partners to better understand the effects and best practices, and will share with you as much information as possible to ease the transition via blog posts and webinars.

I will be participating in a webinar on November 9, 2021, that will be diving deeper into the PACT Act, how your business can operate with it, and how, if any, the tax considerations of the PACT act apply to cannabis/hemp businesses: PACT Act Leaves Vaping & CBD Industries in a Fog: The Latest Tax and Legal Considerations.

As always, feel free to contact me Rachel@TheCannabisIndustry.org with any questions or concerns.

Video: NCIA Today – Friday, October 22, 2021

On the latest episode, Bethany discusses the millions of dollars the cannabis industry is losing each year to moisture, an update on cannabis policy reform in D.C. as the federal government acts on other issues, an upcoming Fireside Chat Webinar with our Government Relations Team on environmental sustainability, and more.

Registration to the Cannabis Business Summit in San Francisco is now open with special limited-time super early bird pricing on tickets available, head to our website for more information today.

A Full Plate For Congress – Status Update for SAFE Banking, MORE Act, CAOA, and Veterans

by Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations

I’m not sure if you’ve seen the news, but Congress has had a lot on its plate recently: negotiations over infrastructure, the budget, the debt ceiling, reconciliation, not to mention the ongoing COVID-19 pandemic! And while the path to cannabis reform has been slightly overshadowed by some of these larger issues, for the time being, the NCIA team is continuing to work tirelessly and incessantly on your behalf to enact legislation that would help you and your business. Let’s take a look at some of the more recent developments from Washington, D.C:

SAFE Banking:

Last month, the House passed the language of the SAFE Banking Act for the fifth time via the must-pass National Defense Authorization Act (NDAA). NCIA and our allies on Capitol Hill are always trying to be creative and come up with new, different avenues to advance our policy priorities, and the NDAA was a great opportunity that we were able to take advantage of! NCIA will continue to work with members of the Senate Armed Services Committee and other stakeholders to push for the SAFE Banking Act to be included in the final bill language. Stay tuned as the NDAA process unfolds throughout the remainder of autumn.

The MORE Act:

Also last month, the House Judiciary Committee passed the MORE Act out of committee by a vote of 26-15 but the bill still has a long journey ahead of it. It’s unlikely that committees like Ways and Means and Energy and Commerce will waive their jurisdiction again, and it’s critical to remember that the chamber actually became slightly more conservative following the 2020 election. Committee schedules are jam-packed right now, however, we continue to meet with those with jurisdiction over the MORE Act and encourage them to take up this important piece of legislation.

CAOA:

The discussion draft of the Cannabis Administration and Opportunity Act (CAOA) was unveiled back in July by Senate Majority Leader Schumer (D-NY), Finance Committee Chairman Ron Wyden (D-OR) and Sen. Cory Booker (D-NJ). In the following month, NCIA worked diligently with our Evergreen Roundtable, board, committees, social equity scholarship members, and others to provide detailed feedback on various topics as requested by the Senators. NCIA continues to be a resource for the Sponsoring Offices and committees of jurisdiction, however, official bill introduction likely won’t happen until early-2022.

Veterans:

Last week, the House Veterans Affairs Committee: Subcommittee on Health held a hearing on a number of bills; among them H.R. 2916, the VA Cannabis Research Act of 2021. While this bill is not a piece of NCIA priority legislation, we applaud the committee, longtime sponsor and ally Congressman Correa (D-CA), and their teams for discussing this important topic. Of note is testimony from Dr. David Carroll, Executive Director at the Office of Mental Health and Suicide Prevention at the Department of Veterans Affairs (VA). His testimony is only about a page long, but the gist is that the VA does not support this bill. I’d also like to highlight the statement Rep. Correa submitted for the record, which you can find here.

Even though Capitol Hill’s bandwidth is stretched, NCIA will continue our work in Washington, D.C. to get these (and other) cannabis provisions enacted into law. Have questions or thoughts? Find me over on NCIA Connect!

Video: NCIA Today – Friday, October 15, 2021

Equity Member Spotlight: Endo Industries – Nancy Do

Tell us a bit about you, your background, and why you launched your company.

Endo Industries CEO & Co-founder, Nancy Do

I was raised in Eastside San Jose by parents who are Vietnam War refugees and moved to San Francisco 12 years ago where my cannabis entrepreneurship journey began. I started off as a grower in my garage in San Francisco and started to expand into grow houses, greenhouses, and warehouses to build what is now Endo Industries.

I built Endo Industries because despite living through some of the lowest times of my life such as getting raided, going to jail, and going through years of emotional roller coasters with the criminal justice system, I know my experience, passion, and background is what cannabis needs. Endo is grounded in science, elevated by culture. Endo represents equity, diversity, the hustle, and the grind and we are building something in cannabis that is exceptional and collaborative. I love this plant and everything plant medicine can represent. I’m not going to let this industry become one-dimensional.

What unique value does your company offer to the cannabis industry?

Endo is a queer female, legacy, and social equity-owned and operated parent company, which is a mouthful but also a unique value proposition in itself. I’ve seen legacy and equity cannabis companies come up with great ideas, passion, experience, and drive but are lacking in organization, upper management, high-level strategy for the long game, and key resources such as genetics, a reliable supply chain, and capital (including in Endo’s own experiences!). As a team, we deeply understand this plant and the creativity of what cannabis culture is and can be. We bring something different and fresh.

Endo provides a few unique things in our model:

Plants from tissue culture free of pests and diseases to our growers and tissue culture services to elevate and protect our brands and breeders
A strong stance of direct and real support for equity and legacy operators through our partnership with Locals Equity Distro to provide distribution services for over 25 equity, legacy, queer and women-owned brands in CA
Workforce and economic opportunity for the Re-Entry Community who have been formerly incarcerated
A tech, blockchain component to collect and share data

What is your goal for the greater good of cannabis?

Virus-free tissue culture plants at Endo’s lab in San Francisco

My greater goal is to create a platform and community that enables the normalization of safe, affordable access to cannabis while uplifting communities that have been affected by the war on drugs. I want to build a world in which we can celebrate art, culture, diversity, and cannabis all in one. And no, it’s not the idealist in me; I know this is the way the world needs to reconnect, compassionately with each other in spite of our differences. We’d certainly find that we have more in common than meets the eye if we let our walls down.

What kind of challenges do you face in the industry and what solutions would you like to see?

Being a queer women of color while also building a business that serves the greater good of our communities is no walk in the park. I would like to see investors and potential partnerships trust, respect, and invest in leaders like me. We need access to real capital and partnerships without undervaluing or controlling our businesses. We can build profitable, thriving businesses if we are just given the chance and there is no better place than the cannabis industry to start.

Why did you join NCIA? What’s the best or most important part about being a member through the Social Equity Scholarship Program?

I’ve always wanted to join NCIA but the membership fee was a barrier to entry. I’m grateful for the opportunity to be a part of an organization giving a voice and making space for equity and under-represented founders both on the legislative level and through NCIA’s channels.

Anything else: What is Endo’s growth plan for the next year?

We just launched a smaller raise of $1M and will be going for a larger round of $4M shortly thereafter. These funds will be used to expand our plant genetics offerings into new territories in the US and globally, which will allow us to foundationally launch the Endo model in every new territory. No doubt, Endo is going to make big waves this coming year to set ourselves up for the many years to come.

Video: NCIA Today – October 1, 2021

House Floor Debates, Markups, and Beyond for SAFE Banking and MORE Act

By Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations

Usually, things are somewhat slow when it comes to cannabis policy reform in Washington, D.C., but the last week has been quite the whirlwind! In the span of one week, the SAFE Banking Act was included in (and passed via) the must-pass National Defense Authorization Act (NDAA) and the House Judiciary Committee marked up and subsequently passed the Marijuana Opportunity, Reinvestment, and Expungement (MORE) Act!

Last week, the House passed the language of the SAFE Banking Act for the fifth time via the must-pass NDAA. NCIA and our allies on Capitol Hill are always trying to be creative and come up with new, different avenues to advance our policy priorities, and the NDAA was a great opportunity that we were able to take advantage of! At first, there were some concerns that the language (proposed as an amendment to the larger package) would not be ruled germane, however, we were able to clear that hurdle in the House Rules Committee, allowing the provision to move forward for Floor debate and a vote.

The amendment was then debated for a short period of time on the House floor and for the first time ever, passed via voice vote! This is incredibly exciting and reinforces the strong, bipartisan support that this legislation has.

SAFE’s inclusion in the Senate’s version of the bill is a bit more uncertain. Currently, the Chair and Ranking Member of the Senate Armed Services Committee (which has jurisdiction over the NDAA) have circulated their draft of the package that differs in many ways from the House’s bill. Here at NCIA, we will be working with Senate allies to determine what’s next for the NDAA in that chamber and collaborating with other stakeholders to ensure that the SAFE Banking language is included and passed into law. I’ll be the first to admit that I am not (nor have I ever been) a defense lobbyist, however, I’m definitely getting a crash course now!

Then, less than 24 hours later, the House Judiciary Committee announced that they would be holding a markup on the Marijuana Opportunity, Reinvestment, and Expungement (MORE) Act. You’ll recall that the MORE Act was marked up in that committee in November 2019 (during the last Congress), and passed by a vote of 24-10. Then, after all of the other relevant committees waived their jurisdiction, the MORE Act was brought to the House Floor in December 2020 and passed 228-164.

While the MORE Act passed out of the Judiciary Committee this session by a vote of 26-15, the bill still has a long journey ahead of it. It’s unlikely that committees like Ways and Means and Energy and Commerce will waive their jurisdiction again, and it’s critical to remember that the chamber actually became slightly more conservative following the 2020 election. Additionally, there is no companion legislation in the Senate as of publication.

As always, NCIA will continue to work with our allies and stakeholders on and off Capitol Hill to get these policies enacted into law. Have questions? Find me on NCIA Connect. Want to become more involved with policy at NCIA? Learn more about our new Evergreen Roundtable here.

Video: At a Glance – Highlights from #MWCannaBizCon!

The industry’s most influential trade association guided the Midwest into a wealth of opportunity and growth at the 2021 Midwest Cannabis Business Conference last week in Detroit, Michigan. At #MWCannaBizCon, attendees networked with industry leaders, found products and services to grow their cannabusiness, and took advantage of the specially curated content focusing on the Midwest market.

Watch this video for highlights, and be sure to join us in December at #CannaBizSummit on December 15-17 in San Francisco.

Video: NCIA Today – September 17, 2021

Video: NCIA Today – September 10, 2021

Equity Member Spotlight: Next Level Edibles – Anthony Jenkins Jr.

Tell me a bit about your background and why you launched your company?

I was born in Hayward, California and spent most of my childhood in Mesa, Arizona, and in the Bay Area, in Northern California. After high school, I spent some time at The Farm (Stanford) and graduated from The House (Morehouse College).

Next Level was started almost 10 years ago. During a particularly trying part of my life, a medical professional recommended antidepressants and anti-anxiety medicine for symptoms I was experiencing. Taking these drugs made me feel slightly better, but came with a host of other problems; twitching, irritability, weight gain. I needed another solution.

In college, I experimented with cannabis and as an adult, I found that it alleviated my symptoms without the side effects. Unfortunately, the halflife for cannabis is only 90 minutes which wasn’t nearly long enough to cover my full workday. I learned about edibles and how they can last for 4 to 6 hours and I was really attracted to their lack of smell. As a business professional, a deal could be broken if I smelled like cannabis. Edibles did not have a negative connotation and were perfectly discreet for my work environment.

Unfortunately, edibles only came in two different types at this time period: tasty, but completely lacking on potency, or absolutely disgusting and potent. No one should ever need a chaser for their edibles. The industry was ripe for a company with absolutely delicious products that could also provide a strong dosage.

What unique value does your company offer to the cannabis industry?

Next Level empowers people to infuse any food or beverage and accurately dose it for higher tolerances. With our products, the home cook can imbue any dish her heart desires and the morning warrior can add a kick to his favorite hot beverages.

Cannabis companies have a unique responsibility to shape this growing industry to be socially responsible and advocate for it to be treated fairly. How does your company help work toward that goal for the greater good of the cannabis industry?

When we started this venture, there was not much information out there about equity cannabis companies. Realizing there are probably many other minority entrepreneurs trying to start a cannabis business, I started a Facebook group called CES (Cannabis Equity Success) to help disseminate information about equity programs across America and to raise the profile of equity companies to support. In addition, I’ve been assisting new entrepreneurs to get connected with resources to see their vision come to light. As a minority-owned business, it is very important that we celebrate and support other businesses owned and operated by women, veterans, those with disabilities, and people of color.

It is Next Level’s vision to support these minority-owned businesses. Partnering with women-owned businesses, like Changemaker Creative, not only makes good business sense as they are local leaders in the industry, but also allows us to gain key insights into our target market. The owner and head creator, Lilli Keinaenen, is able to provide details and cater designs that appeal directly to her demographic. Other awesome women-led companies that are our strategic partners include our copacker, the Galley, and Supernova women.

In our distribution chain, we work with BIPOC owned companies like Local Equity Distribution and Breeze which provide jobs and revenue to the people and communities negatively impacted by cannabis arrests.

What kind of challenges do you face in the industry and what solutions would you like to see?

The biggest challenge we face in the industry is getting dispensaries to buy small company products. We are a small “mom and pop” owned by family members from Oakland, CA. It’s more challenging to get dispensary buyers to sit down with us because they prefer to save their time and shelf space for the larger established brands. One possible solution for this problem is to have each dispensary dedicate a certain portion of its stock to legacy brands/small mom and pops/equity companies.

The other challenge we face is getting access to capital. This is a bootstrapped venture, and issues in cannabis take a lot more time and money to solve than other industries. Unfortunately, there are not a lot of angel investors or investment companies putting money in cannabis and even less in minority entrepreneurs. The solution for this is to make the investment world much more equitable and inclusive.

Why did you join NCIA through the DEI Scholarship Proogram? What’s the best part about being a member?

I joined NCIA through the DEI Scholarship Program for an opportunity to learn best practices for my industry and to network with the finest minds in cannabis.

Across the Country – State Cannabis News and Movement

by Madeline Grant, NCIA’s Government Relations Manager

As the deadline to submit feedback for the Cannabis Administration and Opportunity Act approached last week, our Government Relations team worked tirelessly to submit a detailed analysis and recommended improvements on behalf of the legal cannabis industry. The full comments and an executive summary can be downloaded here. The Cannabis Administration and Opportunity Act (CAOA), submitted in July by Majority Leader Charles Schumer (D-NY) and Senators Cory Booker (D-NJ) and Ron Wyden (D-OR), would remove cannabis from the schedule of controlled substances, create a regulatory structure and federal guidelines for cannabis products and state-legal markets, and is intended to support restorative justice for the people and communities that have been disparately hurt by prohibition while ensuring fair opportunities in legal cannabis markets for small businesses and marginalized communities.

The introduction of the comprehensive draft language was a pivotal moment for the United States Senate and NCIA will continue to do whatever we can to ensure value-driven policies for the cannabis industry. Meanwhile, we continue to see movement at the state level as support for cannabis legalization efforts continues to grow. Here are some important updates happening at the state level.

California

California officials announced that they are soliciting proposals for a program aimed at helping small marijuana cultivators with environmental clean-up and restoration efforts. The California Department of Fish and Wildlife’s (CDFW) Cannabis Restoration Grant program will release applications this fall and remain open through spring 2023. The $6 million in potential funding, which comes from cannabis tax revenue, must go to government agencies, California nonprofits, or Native American tribes who would then work with cultivators on environmental efforts.

New York

The newly inaugurated governor of New York says she wants to “jumpstart” the implementation of cannabis legalization. Governor Kathy Hochul took a major step by making two key regulatory appointments to oversee the state’s cannabis market. Soon after they were quickly confirmed by the Senate during a special session. Former New York Assemblywoman Tremaine Wright (D) will serve as chair of the Cannabis Control Board, and former Drug Policy Alliance (DPA) staffer Christopher Alexander will be the executive director of the state’s Office of Cannabis Management.

Ohio

Ohio activists can begin collecting signatures for a 2022 ballot initiative to legalize marijuana in the state. The Coalition to Regulate Marijuana Like Alcohol (CTRMLA) launched its ballot effort last month. The new initiative is a statutory proposal and if supporters collect 132,887 valid signatures from registered voters, the legislature will then have four months to adopt the measure, reject it, or adopt an amended version. In the case of lawmakers not passing the proposal, an additional 132,887 signatures will be required to place the proposal before voters on the ballot in 2022.

Missouri

Another adult-use legalization proposal has been filed. Legal Missouri 2022 submitted the latest measure to the secretary of state’s office, and it will now go through a review period before potentially being certified.

New Mexico

The Cannabis Control Division announced applications are now open for businesses interested in legal cannabis producers licensed by the state of New Mexico. After an application is submitted, regulators will have 90 days to issue a determination.

Colorado

Colorado voters will decide on an initiative in November that would raise cannabis taxes to fund programs that are meant to reduce the education gap for low-income students. The secretary of state confirmed that the campaign behind the measure collected more than the required 124,632 valid signatures to make the ballot. The measure would give low and middle-income families a $1,500 stipend to have school-aged children participate in afterschool programs, tutoring, and summer learning programs.

As states continue to legalize medical and adult-use cannabis, be sure to check out our state policy map for updates. Our Government Relations team will continue to educate congressional offices as states move forward. It’s vital to have accurate information and resources for members and Congress and staffers on Capitol Hill. With advancements at the state level, we continue to relay the importance of cannabis legalization at the federal level. Please stay tuned for more updates from our Government Relations team.

Video: NCIA Today – September 3, 2021

NCIA Accepting Applications For 2022-24 Board of Directors Term

NCIA is accepting applications for eligible candidates to apply for its board of directors now through Thursday, September 30, 2021.

The National Cannabis Industry Association is a nonprofit organization run for and by its membership, so we hope you’ll consider this opportunity to apply for a seat on the NCIA Board.

Serving on NCIA’s Board of Directors is no small task. Board members are responsible for overseeing the strategic direction of the largest and most influential cannabis industry organization in the country. Board Members are also responsible for building membership, fundraising, and ensuring that NCIA continues to be the strongest force advocating for the fair and equal treatment of the industry on Capitol Hill.

Learn more about our current Board Members

Annual Board Selection Process

Current NCIA members in good standing are eligible to apply for a seat on the board. NCIA members who are interested and qualified to serve on our board are encouraged to submit an application for review by our nominating committee before the September 30 deadline.

Candidates may apply directly for a board position during the open application process. The application form asks for information about the candidate’s professional background, unique talents, skills, and viewpoints, and ability to contribute or raise financial resources for NCIA.

Who Qualifies To Run For A Board Position?

To be considered for a seat on the board, a candidate must be a fiduciary (e.g. owner, president, CEO) of a current dues-paying member business at any level of membership and must submit an application online by September 30.

What Are The Requirements For An NCIA Board Member?

Board members serve two-year terms and are responsible for overseeing the association’s overall strategy and budget, assist in the development of strategic relationships, and as ambassadors of NCIA, they represent nearly 2,000 member businesses. In general, the NCIA board meets in person twice and conducts 2-3 video conferences per year.

How Are The Board Positions Selected?

Once the application period closes, NCIA’s Nominations Committee will convene to carefully review and score all applications. The committee will ultimately select a slate of nominees to fill eight (8) available board seats that are best suited to bring additional talent, resources, and diversity to our growing organization, based on their qualifications.

Our Nominating Committee will be comprised of the chairs of our 14 member committees as well as a select number of current board members whose terms are not expiring this year. Once the Nominating Committee selects the slate of eight, members will be notified later this year.

Online Application Form

Video: NCIA Today – August 20, 2021

Deputy Director of Communications Bethany Moore checks in with what’s going on across the country with the National Cannabis Industry Association’s membership, board, allies, and staff. Join us every Friday on Facebook for NCIA Today Live.

Member Blog: We’re Out of the Weeds – CRC Releases Initial Rules & Regs for New Jersey’s Adult-Use Marketplace

by Genova Burns, LLC

New Jersey recently passed the Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act (“CREAMMA”). Among other things, CREAMMA permits adults 21 years and older to consume cannabis and allows New Jersey residents to operate six types of cannabis businesses within the state. The new adult-use marketplace, as well as the already established medicinal marketplace, will be administered by the Cannabis Regulatory Commission (“the CRC”). The CRC is a panel of five appointed members who will oversee the development, regulation, and enforcement of the use and sale of all legal cannabis in New Jersey.

The CRC recently approved its first set of rules and regulations on August 19, 2021. This will enable the start of the licensing process for personal adult-use cannabis operations in New Jersey. Here are the 15 takeaways from the initial rules and regulations:

What type of license can I apply for?

There are six different license types:

Class 1 – Cannabis Cultivator License
Class 2 – Cannabis Manufacturer License
Class 3 – Cannabis Wholesaler License
Class 4 – Cannabis Distributor License
Class 5 – Cannabis Retailer License (also includes consumption lounges)
Class 6 – Cannabis Delivery License

Businesses may also apply for a license to operate a cannabis testing facility or medical cannabis testing laboratory. License-holders may hold multiple licenses concurrently; however, there are limitations on the number and type of licenses that may be held concurrently.

Are there any caps on the number of licenses that may be awarded?

The State only placed a cap on Class 1 licenses for cultivators. In particular, there will be a statewide cap of a total of 37 cultivators until February 22, 2023. Keep in mind that state limits aren’t the end of the inquiry; municipalities may set restrictions on the number of businesses in their jurisdiction.

What are the fees to apply for one of the adult-use licenses?

In an effort to make the application fee reasonable, the CRC will require applicants to only pay 20% of the application fee at the time of application, and the remaining 80% will only be collected at the time the license is approved. The initial application cost may be as low as $100 but successful applicants should be prepared to pay additional fees ranging from a total cost of $500 – $2,000.

Are there any fees other than the initial application fee?

Yes. There are annual licensing fees, which can range from $1,000 for a microbusiness to $50,000 for a cultivator, with up to 150,000 square feet of cultivation capacity. This fee range only applies to the adult use marketplace. There is a different licensing fee schedule for the medicinal use marketplace.

Will anyone be given priority in the application process for a cannabis license?

Yes. The CRC will prioritize applicants who live in specifically defined economically disadvantaged areas of New Jersey or who have past convictions for cannabis offenses (“Social Equity Applicants”). It will also prioritize applications from minority-owned, woman-owned, or disabled veteran-owned businesses that are certified by the New Jersey Department of the Treasury (“Diversely Owned Businesses”). Businesses in impact zones will also take priority (“Impact Zone Businesses”).

What do you mean by “priority review?”

Applicants meeting the criteria described above will have their applications reviewed before other applications, regardless of when they apply. Remember, however, that priority review doesn’t guarantee selection.

When will the CRC begin to review applications?

No date has been announced, but the CRC promises that it will be soon . The CRC will publish notice in the New Jersey Register announcing its intent to review applications and submissions will be reviewed, scored, and approved on a rolling basis (pun intended), subject to the required priority review for certain applicants.

What should I expect from the application?

Applicants will be expected to submit a detailed application that includes specific details for the proposed site for the business (which must be owned or leased), municipal approval, and zoning approval. Applicants must also submit an operating summary plan detailing the applicants’ experience, history, and knowledge of operating a cannabis business. The scoring of applicants and awarding of licenses will be based entirely on the application materials.

What if I don’t have all of the materials to submit a complete application?

Don’t worry, you can apply for a “Conditional License.” A Conditional License is a provisional award that gives the holder 120 days to become fully licensed by satisfying all the requirements for full licensure, including finding an appropriate site, securing municipal approval and applying for conversion to an annual license.

What are the requirements to be considered for a Conditional License?

Conditional License applicants must submit a separate application for each cannabis business license requested, along with a background disclosure, a business plan and a regulatory compliance plan to the CRC. At the time of the application, all owners with decision-making authority of the conditional license applicant will need to prove that they made less than $200,000 in the preceding tax year, or $400,000 if filing jointly.

Are there any advantages in being awarded a Conditional License?

Conditional License holders that convert to an annual license will not have to submit the sections of the application that, under statute, require applicants to demonstrate experience in a regulated cannabis industry. This flexible option offers an opportunity for newcomers to get into the cannabis industry.

What is a Microbusiness License?

Microbusiness licenses are for applicants who want to run a relatively small operation. Applicants may apply for a microbusiness license for any of the six license types. A microbusiness license limits the business to 10 employees; a facility of no more than 2,500 square feet; possession of no more than 1,000 plants per month; and/or a limit of 1,000 pounds of usable cannabis per month.

Can I rely solely on my local municipality for a license?

No. The state must award the cannabis license. Municipalities play a critical role, however, in the licensing process. For example, applicants will only be licensed by the CRC if the applicant has demonstrated support from the municipality, zoning approval, and has been verified to operate in compliance with any other local licensing requirement.

Can municipalities ban cannabis businesses from operating within their jurisdiction?

Yes. Municipalities may ban certain businesses from operating within their borders if they enact an ordinance regulating or banning cannabis businesses by August 21, 2021. Municipalities may update their ordinances at any time to remove any restrictions that they previously placed.

What happens if I don’t follow the CRC’s rules and regulations?

The CRC is authorized to inspect cannabis businesses and testing laboratories, issue notices of violations for infractions and issue fines. Standard fines can be no higher than $50,000, while fines for infractions implicating issues of public safety or betrayal of public trust can be as high as $500,000. Licenses may also be suspended or revoked. Don’t take the risk!

These 15 key points present only a quick summary of the CRC’s initial set of rules and regulations. We anticipate there will be a second set of rules released later this year, which will likely resolve issues that weren’t addressed in the initial set of rules and regulations, or CREAMMA. We expect the second set of rules and regulations to focus mainly on the needs of distribution and delivery service, and preparing for the acceptance of applications, before the Garden State is in full bloom…

Charles J. Messina is a Partner at Genova Burns LLC and Co-Chairs the Franchise & Distribution, Agriculture and Cannabis Industry Groups. He teaches one of the region’s first cannabis law school courses and devotes much of his practice to advising canna-businesses as well as litigating various types of matters including complex contract and commercial disputes, insurance and employment defense matters, trademark and franchise issues and professional liability, TCPA and shareholder derivative actions.

Jennifer Roselle is a Partner at Genova Burns LLC and Co-Chair of Genova Burns’ Cannabis Practice Group. She has unique experience with labor compliance planning and labor peace agreements in the cannabis marketplace. In addition to her work in the cannabis industry, Jennifer devotes much of her practice to traditional labor matters, human resources compliance and employer counseling.

Daniel Pierre is an Associate at Genova Burns and a member of the Cannabis and Labor Law Practice Groups. In addition to labor work, he likewise assists clients in the cannabis industry, from analyzing federal and state laws to ensure regulatory compliance for existing businesses to counseling entrepreneurs on licensing issues.

For over 30 years, Genova Burns has partnered with companies, businesses, trade associations, and government entities, from around the globe, on matters in New Jersey and the greater northeast corridor between New York City and Washington, D.C. We distinguish ourselves with unparalleled responsiveness and provide an array of exceptional legal services across multiple practice areas with the quality expected of big law, but absent the big law economics by embracing technology and offering out of the box problem-solving advice and pragmatic solutions.

Given Genova Burns’ significant experience representing clients in the cannabis, hemp and CBD industries from the earliest stages of development in the region, the firm is uniquely qualified to advise investors, cultivators, processors, distributors, retailers and ancillary businesses.

Committee Blog: What Retailers Can Do To Support Social Equity

By NCIA’s Retail Committee

Social equity can be boiled down to a way of seeking remedy for the harms caused by the racist war on drugs and to help individuals, families, and communities that have been disproportionately impacted by prohibition. A big part of this is making sure that no one is left behind by the economic developments created by making cannabis legal. As local, state, and federal governments continue to grapple with implementing policies that effectively address this issue, there is a lot the industry can – and should – do to help make sure that the opportunities in regulated cannabis markets are inclusive and equitable, and to help support businesses owned by members of marginalized communities.

As many as 70% of consumers want brands to take a stand on social and political issues. That’s a 66% increase from 2017, according to Sprout Social’s 2019 #BrandsGetReal survey. Customers are more likely to purchase from companies that take a stand on causes aligning with their values and more importantly, companies hold the power to make a difference; even if it’s encouraging people to take baby steps towards a larger solution. Data shows they might already be doing that, because 67% of consumers say brands are raising awareness around just causes, and 62% believe brands are educating them on important topics.

Here are just a few ways that cannabis retailers can help be a part of the social equity solution to economic unfairness created by the failed war on drugs:

Partner with Job Programs

Cannabis arrests or convictions can erect barriers in someone’s life. More specifically, they can affect housing, education, and career prospects. Consider partnering with city, state, and national programs and organizations that are creating pathways to cannabis ownership and employment – including the formerly incarcerated – to create job opportunities for underserved communities.

Expungement Days

Reach out to a local law firm or social justice organization and talk about hosting “expungement days.” Your efforts will help provide free legal measures for expunging low-level cannabis-related convictions. The Last Prisoner Project is a cannabis reformation project seeking to release prisoners currently convicted for cannabis-related crimes and help them assimilate back into society. However, local organizations may often have direct experience with this work in your communities and have well-established relationships with them to help better connect with the people who need these services the most.

Reach out to them and see what they recommend before planning your expungement day. You can also find out more information about expungement efforts nationally at the Collateral Consequences Resource Center.

Create shelf space

Socially conscious companies should show equity and racial justice on your stores’ shelves. Whether it is making a “social equity section” or finding ways to educate budtenders on the merits and stories behind the products, you will be moving sales in the right direction and promoting socially conscious consumer patterns. You can also provide tabling space for brand ambassadors to help promote social equity company products that you carry. This not only helps the brands but also creates greater loyalty to your store.

Find products that are both socially equitable and fit your dispensary’s needs. That way, you push the product because you love the product, not just because it’s trendy. But in doing so, you are contributing to positive social change and acceptance, and driving commerce toward BIPOC-owned companies. Remember, the goal is equity.

Form equitable partnerships for ownership

Are you a retailer, cultivator, or production company? Maybe you’re a vertically integrated, multi-state operation. You might not even touch the cannabis plant at all, but provide services to those who do. No matter who you are in cannabis, find ways to partner with social equity companies and help increase their recognition. Maybe it’s mutually beneficial joint venture projects on brands or another arrangement, but find ways to form fair and collaborative relationships.

Above all, keep it real

In the end, authenticity is key, and to take a stand in a way that inspires customers: your message can’t be filled with empty words. If you’re a company that’s looking for causes to rally behind, keep it in your wheelhouse and make sure your audience will resonate with the partnerships you’re creating.

Retail businesses have the power to become change agents and inspire customers to take action in their own backyards. Seek out opportunities like the ones we mentioned and provide opportunities for wealth generation, education, and social restoration in marginalized communities.

According to statistics, you’ll make a lasting impression on your audience, increase sales, and you’ll be a force for positive social change as you impact lives in your community and beyond. What’s better than that?

FDA Punts on Regulating CBD Again

by Morgan Fox, NCIA’s Director of Media Relations

Last week, the hemp and CBD industries took another blow from the Food and Drug Administration when the agency refused to grant a request from prominent CBD producer Charlotte’s Web to regulate the substance as a dietary supplement. This is the latest in a series of delays and setbacks on the part of the FDA when it comes to regulating hemp-derived cannabinoids and products since they became technically legal at the federal level under the 2018 Farm Bill.

Bloomberg reports: “The company’s bid to sell its full-spectrum hemp extract with CBD as a dietary supplement won’t be considered because of the FDA’s own prior decision to treat CBD as a drug, according to a letter posted on the agency’s website Wednesday. This shouldn’t disrupt the business of Charlotte’s Web or prevent other companies from continuing to sell such products, which already exist in a gray area without the agency’s oversight. The decision shows the agency’s ongoing hesitancy to regulate cannabidiol, the non-psychoactive ingredient in cannabis plants better known as CBD… The FDA’s objection rested in part on its prior approval of Epidiolex, a CBD drug to reduce seizures, which the agency said precludes it from authorizing CBD for dietary purposes. Even if the drug hadn’t been approved, though, the FDA said in the letter to Charlotte’s Web dated July 23 that it “has concerns about the adequacy of safety evidence” that the company submitted.”

You can read the full FDA letter here.

This position is likely to create serious problems for the CBD industry. Without allowing CBD products to be regulated as dietary supplements or food additives, the FDA will be forcing producers to get federal approval for their products under the Investigational New Drug program. This process can often take years and cost applicants millions of dollars.

This casts even more doubt on what the future of the CBD market will look like as producers continue to operate in an uncertain landscape. The legality of CBD combined with the lack of federal regulations has created a lot of opportunities for responsible producers to bring products to market without dealing with the often overly strict state cannabis programs, but it has also opened the door to irresponsible operators who have been accused of actions from making misleading or unsubstantiated health claims to selling mislabeled or adulterated products.

Furthermore, the lack of federal regulations has discouraged many larger retailers from selling CBD or hemp-derived products altogether, drastically limiting the market options for producers. Some industry insiders have theorized that lack of access to those retailers has directly led to some producers desperately searching for ways to unload their excess CBD, including processing it into unregulated Delta 8 THC and flooding the markets in both legal and prohibition states, creating concerns among regulators, lawmakers, licensed cannabis operators, and consumers.

This troubling news follows on the heels of another memo issued by the Farm Credit that suggests that financial institutions that provide financing to hemp businesses should only do so if the company is operating under the auspices of a USDA-approved state hemp program.

“While many states and federally recognized tribes have since submitted those plans, 20 states are still operating under an earlier provision: a hemp pilot program created by the 2014 Farm Bill. That program, which is still valid and would be further extended under pending legislation that has passed the House and is pending in the Senate, requires less federal oversight than the new USDA-approved programs,” Marijuana Moment reports.

Some in the industry are concerned that the memo will lead to lenders dropping their hemp clients operating under the pilot programs, but others have suggested that it will not have a significant impact on the lenders who are already working with hemp businesses given the amount of reporting that they must already complete for the federal government and the lack of federal prosecutions for doing so historically.

It seems pretty clear by this point that the FDA will not move forward with regulating CBD in a timely and reasonable manner without outside pressure. You can add your voice to the chorus calling for sensible CBD regulations by visiting RegulateCBDNow and urging Congress to take action.

Video: NCIA Today – August 13, 2021

Immerse Your Business at #CannaBizSummit

Are you a member of NCIA? Then use your benefits!

What educational content will be available?

What can you take home from #CannaBizSummit?

Are you an NCIA member or interested in getting your business more involved?

Are you interested in getting more involved in policy and advocacy work?

Let’s Recap…

Video: NCIA Today – Friday, November 19, 2021

Thoughtful Legislation: States Reform Act Introduced

According to Rep. Mace’s office, here are some of the things the bill does:

Ensures that no state or local government will be forced to change its current cannabis policies by removing cannabis from Schedule I and deferring to states.

Regulates cannabis federally like alcohol under USDA for growers, ATF/TTB for cannabis products, and FDA for medical use.

Institutes a low 3% federal excise tax on cannabis products to fund law enforcement, small business, and veterans mental health initiatives.

Ensures the safe harbor of state medical cannabis programs and patient access while allowing for new medical research and products to be developed.

Protects military veterans by ensuring they will not be discriminated against in federal hiring for cannabis use or lose their VA healthcare benefits.

Protects medical cannabis for the following uses: arthritis, cancer, chronic pain, sickle cell, HIV/AIDS, PTSD and other medical uses per a state’s specific cannabis regulations.

NCIA Announces Incoming Board Members

“We’re pleased to welcome the new and returning members for the next board term. Their leadership will be instrumental in advancing our vision for a legal, well-regulated, and inclusive cannabis industry,” stated NCIA CEO, co-founder, and Board member Aaron Smith.

Bringing the Beltway to the Bay at Cannabis Business Summit & Expo

Pathway to Federal Legalization: An Update From D.C.

Community, Actionable and Effective Marketing in Cannabis

Cannabis Banking 2.0

How to Drive Smart Growth and Make Investors Happy with Timely and Accurate Financials

Clearing the Air: Making Sense of Safety and Regulations

Cannabis as an Ingredient, and the Future of Hyper-Focused Products

Honoring Our Veterans – Cannabis Research and Legislation

H.R. 2916: VA Medicinal Marijuana Research Act

NDAA, cannabis, and veterans

Video: NCIA Today – Friday, November 5, 2021

Allied Association Blog: Memories of the Campaign for Prop 215

The year was 1995…

Which comes first?

Allies!

Education was Essential

Meeting Dennis

Equity Member Spotlight: Exspiravit LLC

Tell us a bit about you, your background, and why you launched your company.

What unique value does your company offer to the cannabis industry?

What is your goal for the greater good of cannabis?

What kind of challenges do you face in the industry and what solutions would you like to see?

Why did you join NCIA? What’s the best or most important part about being a member of the Social Equity Scholarship Program?

Video: NCIA Today – Friday, October 29, 2021

The PACT Act Final Rule Has Been Released Prohibiting the Mailing of Cannabis/Hemp Vaporization Products. Is Your Business Ready?

What is the PACT Act?

How can it affect me?

What should I do?

What is NCIA doing?

Video: NCIA Today – Friday, October 22, 2021

A Full Plate For Congress – Status Update for SAFE Banking, MORE Act, CAOA, and Veterans

SAFE Banking:

The MORE Act:

CAOA:

Veterans:

Video: NCIA Today – Friday, October 15, 2021

Equity Member Spotlight: Endo Industries – Nancy Do

Tell us a bit about you, your background, and why you launched your company.

What unique value does your company offer to the cannabis industry?

Endo provides a few unique things in our model:

What is your goal for the greater good of cannabis?

What kind of challenges do you face in the industry and what solutions would you like to see?

Why did you join NCIA? What’s the best or most important part about being a member through the Social Equity Scholarship Program?

Anything else: What is Endo’s growth plan for the next year?

Video: NCIA Today – October 1, 2021

House Floor Debates, Markups, and Beyond for SAFE Banking and MORE Act

Video: At a Glance – Highlights from #MWCannaBizCon!

Video: NCIA Today – September 17, 2021

Video: NCIA Today – September 10, 2021

Equity Member Spotlight: Next Level Edibles – Anthony Jenkins Jr.

Tell me a bit about your background and why you launched your company?

What unique value does your company offer to the cannabis industry?

Cannabis companies have a unique responsibility to shape this growing industry to be socially responsible and advocate for it to be treated fairly. How does your company help work toward that goal for the greater good of the cannabis industry?

What kind of challenges do you face in the industry and what solutions would you like to see?

Why did you join NCIA through the DEI Scholarship Proogram? What’s the best part about being a member?

Across the Country – State Cannabis News and Movement

California

New York

Ohio

Missouri

New Mexico

Colorado