Transpiration and VPD are two fundamental components of plant vitality, and heating, ventilation, and air conditioning (HVAC) systems are one of the most critical considerations for an indoor cannabis cultivator. HVAC alone doesn’t tell the full story of environmental control for cultivation facilities. The term HVAC is typically used to refer to the cooling, heating, or ventilation systems in a building, and while it technically includes dehumidification in most forms, it does not directly highlight the significant dehumidification requirements necessary to maintain optimum plant health inside indoor cultivation spaces. In order to emphasize the importance of dehumidification in the mechanical equipment sizing and selection process, the controlled environment horticulture industry would benefit from moving toward the concept of heating, ventilation, air conditioning, and dehumidification (HVACD) as the common term for these systems.
“HVAC” Challenges
The term HVAC is typically used to reference conventional air conditioning and heating systems designed for temperature control to provide a comfortable environment for people. This is clearly demonstrated in the very design of these systems – for example, sensible heat ratios of commercial HVAC equipment are pretty high in order to meet the loads generated by people, lighting, and miscellaneous equipment found in offices. Plants grown in enclosed spaces have different needs than people do. Of particular interest is the large amount of dehumidification that needs to be performed on a daily basis to maintain an optimum vapor pressure deficit (VPD).
When you apply a standard HVAC system to indoor horticulture, the instant the sensible load is removed from the space (i.e. the lights turn off), the air conditioning unit reaches the lower deadband of the specified temperature set point and shuts off. In the process of bringing the temperature down, we have raised the relative humidity to the detriment of the plants. Further, despite being mostly sensible cooling machines, conventional HVAC systems provide most of the dehumidification capacity in an indoor cultivation space, and that capacity is now inactive during the dark period.
Traditionally, growers would install stand-alone, pocket dehumidifiers to handle the moisture removal requirements that the air conditioning units cannot meet. There are a handful of challenges with this approach that can negatively impact plant health when scaling into industrial-scale operations. Most standalone dehumidifiers dry the air with mechanical refrigeration and in the process add hot air into the room, which then needs to be cooled by additional cooling equipment to maintain temperature. Another challenge is the numerous condensate drains throughout the growing space that are high risk for clogging and quickly leading to pest and pathogen proliferation which are potential GMP and GFSI compliance risks. The separate cooling and dehumidification systems typically do not have communication and control amongst them and ultimately “fight” against each other for temperature and relative humidity setpoints. Additional pest vectors can come into play when the HVAC contractor enters the cultivation or curing space to make repairs on mechanical equipment that is mounted above plants. Above all, maintaining cleanliness in the space can be challenging with many mechanical units perched above a dynamic plant canopy.
Dehumidification, or removing humidity from a room that is filled with water vapor as a result of plant transpiration, is arguably the biggest environmental challenge in controlled environment horticulture. When you size an HVAC system for human comfort or server rooms, the primary focus is temperature control (or sensible load). When selecting and sizing an HVACD system for plants to thrive, it’s all about the latent load, plant transpiration and VPD. Excess humidity is roughly twice as difficult to remove as excess heat from lights, so an effective system needs to be designed as a dehumidifier first and an air conditioner second. Integrated dehumidification needs to be at the beginning of every HVAC conversation, and a primary focus of every system.
The benefits of including dehumidification as a critical component
To maximize plant vitality, two fundamental components to understand are transpiration and VPD. Put simply, VPD is the humidity difference (or deficit) between the inside of a leaf and the environmental conditions surrounding that leaf. It is this humidity difference that draws water from the roots of a plant, through the stem and out of the leaf tissue, otherwise known as transpiration. This process is critical to photosynthesis and optimizing plant production, and it’s all directly related to the levels of humidity in a given room. As humidity is drawn out of the leaf, dehumidification must be used to remove the humidity from the environment and maintain appropriate VPD levels. Without dehumidification, humidity builds inside the room, plant growth and plant health are negatively impacted, and conditions become ideal for pests and pathogens.
Properly-designed dehumidification creates consistent and precise environmental conditions across the plant canopy, mitigating risk against issues like powdery mildew and botrytis. Well-executed dehumidification allows growers to control their VPD and drive plant health. At the end of the day, a stable climate sets a strong foundation of cultural control for a facility to maximize quality biomass while limiting crop loss associated with pest and pathogen issues.
Why does this all matter? Because properly sized and commissioned HVACD systems empower the cultivator to maximize production efficiency, reduce the risk of production downtime, and promote growth.
HVACD will change industry standards and best practices
Collectively updating the industry’s knowledge and understanding surrounding dehumidification highlights the true challenges of growing plants indoors, and the need for purpose-built equipment and controls that optimize the environment based on every stage of the plant life cycle. Plants are living organisms that have different needs at different times, and mechanical equipment should be designed and manufactured around this concept.
We can draw a comparison to this concept by looking at indoor horticulture lighting systems. When the industry began to develop new terms like Photosynthetic Photon Flux Density (PPFD), the phrase “PPFD for plants because lumens are for humans” came to be. Meaning that if we are measuring lumens, we are prioritizing people in the space as opposed to the plants. This same mindset should apply to all mechanical equipment involved in a cultivation facility.
Now that more scientific studies and data are becoming available on topics like plant transpiration, dehumidification, and VPD as a driving force in plant vitality, it is clear that there is a better way to think about climate control when applied to controlled environment horticulture. HVAC focuses on the sensible (or temperature) cooling that keeps people happy indoors, while HVACD focuses on the latent cooling (or moisture removal) that keeps plants happy indoors. Both are critical concepts that must be considered during the design of an indoor cannabis cultivation facility to ensure both people and plants are happy indoors.
Critical Dehumidification Requirements for other Rooms in an Integrated Cannabis Grow/Manufacturing Facility
Extending the discussion downstream of horticulture to other areas of the facility, humidity control plays a critical role in profitability, food safety, asset utilization, and operating efficiency.
Humidity control in the Curing Room and the awareness of any air exchange with building areas adjacent to Cure is important. More broadly, any room-to-room pressure differentials can transfer air with different humidity levels.
Food safety is enhanced by considering humidity control, usually dehumidification. Any cold surfaces below the dew point of the room can cause condensation, which can lead to microbiological growth. Room environments controlled so that the water activity (aW) of the cannabis is maintained between 0.55 and 0.65, will also help limit mold growth and the associated mycotoxins.
In many cases, there are special dehumidification requirements, such as in an equipment drying room after warewashing, or to dry out a room and return it to operation after washing and sanitizing. HVACD designers need to coordinate closely with process or manufacturing specialists to be aware of any process exhausts, combustion air requirements, or high outside air exchanges. That additional outside air and the humidity carried in with it, must be considered.
And for Marijuana Infused Products (MIPs), specifically gummies and chocolates, the primary food safety control is low water activity, rather than a robust kill step, so precise humidity control is again a critical issue.
Even further, packaging machinery operates more efficiently if the flow characteristics of the cannabis are a key operating parameter. Moist cannabis will adhere to machinery and create other problems that slow run rates and cause downtime. This problem can occur with any weight fillers or the pre-roll machines.
All told, moisture can be both your friend and foe in a wide variety of cannabis endeavors. The ability to maintain the appropriate relative humidity, in addition to temperature, in each different type of room in a cannabis production facility is a key factor in a successful operation.
The Facilities Design Committee (FDC) focuses on providing NCIA members and regulators a framework and information about facilities design options through which legal producers can plan for GMP level production as the market transitions from a state to a federally regulated industry.
A Message From Our CEO – Farewell 2020
Photo By CannabisCamera.com
In these last few days of the year, I’m as eager as anyone to put it all behind us in the rearview mirror, but I’m also so grateful of what our members have made possible in 2020.
As we close out NCIA’s 10th year as the cannabis industry’s largest and most respected trade association, I’m just in awe of all the progress that has been made for the cannabis industry in spite of so many challenges.
When state governments were first grappling with the response to the pandemic, most deemed cannabis businesses as “essential,” allowing our industry to stay open to serve patients and adult consumers. Just a few years ago, this level of recognition as a vital sector of the economy would have been unthinkable — even to me!
What’s more, legal cannabis sales broke records throughout the months of this pandemic. It should be no surprise that #CannabisIsEssential to getting through a global pandemic.
Although our lobbying operation went virtual this year, NCIA was able to move the ball further than ever in Congress. The House of Representatives ended the year by passing the groundbreaking MORE Act, marking the first time either chamber of Congress has approved legislation to legalize cannabis since its prohibition over 80 years ago.
Public support for sensible marijuana policy and the legal cannabis industry stands at its all-time high. During the most divisive election in modern U.S. history, voters from across the political spectrum support ending prohibition and putting cannabis behind a regulated counter. In fact, adult-use cannabis initiatives garnered more votes than President-Elect Biden in every state where both appeared on the ballot — including the two he decisively won (New Jersey and Arizona). The hundreds of forward-thinking businesses that support our advocacy and education efforts have made this incredible progress possible, in spite of an otherwise dismal year.
It’s been almost ten months since we have been able to host in-person events but NCIA has continued to keep our community connected and informed through our Industry Essentials educational webinar series, Cannabis Caucus (cyber) events, and the Cannabis Business Cyber Summit.
NCIA also launched a second weekly podcast offering, The Cannabis Diversity Report, and celebrated more than 200 episodes of The Cannabis Industry Voice podcast (also top 50 U.S. Business News charts for Apple Podcasts), plus monthly live video updates with NCIA Today. During this temporary break from face-to-face networking, we’ve created several digital sponsorship opportunities for savvy cannabis businesses to elevate their brand while also supporting the work we are doing to advance the industry.
Amidst our national reckoning over systemic racism and police brutality, NCIA launched our Equity Scholarship program which now provides membership benefits to over 100 equity operators. Thanks to the financial support of a growing number of businesses that have stepped up to support social equity in cannabis, this important program will continue to be a priority in 2021 and beyond.
2020 was also a great year to be a member of NCIA. As the only full-service trade association in the cannabis industry, we take pride in providing our members with the resources they need to gain a competitive advantage over the industry’s free-riders and isolated operators.
Over the past year, we’ve expanded our membership benefits with the launch of our exclusive online community, NCIA Connect, as well as significant member-only discounts onSimplifya’s compliance platform.
I take pride that NCIA is the only association in cannabis providing our members with this kind of direct ROI in addition to professional political representation in our nation’s halls of power.
Our members are building the next great American industry. It’s an honor representing them through the thick and thin. Progress takes time but the work we are doing to build support for that industry in the halls of Congress and among the voting public is paying off.
On behalf of the whole team at NCIA, I wish you a happy holiday season and new year! I hope you’re enjoying it safely with those you love. We have even more in store for 2021 as we continue to support our members through advocacy, education, and community, so stay tuned.
With gratitude,
Aaron Smith Co-founder & CEO
P.S. If you are not yet a member of NCIA but somehow read all the way to this point, please take just a couple of minutes more to join today. NCIA membership is a simple investment in the future of your business and our industry.
P.P.S If you are a member, reach out and say hello. I’d love to hear about your plans for 2021 and find out how NCIA can help your business succeed.
Committee Blog: Recruiting Best Practices for Hiring Leaders to Your Cannabis Business
Most cannabis businesses are still figuring out how best to recruit key leaders to their organizations who can survive the tests of the cannabis industry.
The ability to effectively hire key leaders who will “stick” with your cannabis business and add incremental value on your leadership team is nothing short of paramount.
Of course, the first steps should be to define the role internally and agree on the desired functional skills and experiences possessed by the ideal candidate, how their success will be measured, and what your selection process will be that will deliver the right candidate experience to land that talent.
But… What X-factors are you screening for when evaluating senior executive candidates in today’s cannabis economy? Here’s a (not so) abbreviated version of our checklist:
A record of accomplishments and a demonstrated ability to get results in a variety of situations under different conditions.
While we are looking for “we” people, as in “here’s what we did,” we are also trying to tease out and understand what they accomplished individually. You (as a leader) led a team to deliver your strategy, but we are looking for what you did personally to create intense focus and drive results, i.e. what levers you pulled to improve revenue and EBITDA, or Earnings Before Interest, Taxes, Depreciation, and Amortization.
Ask probing questions to get beyond the obvious answers.
Ask what they envision your cannabis business should look like in 1-2 years if they were hired and what they are prepared to accept as a consequence of trying to make needed changes. Asking those kinds of detailed questions can help test how committed they are to doing what is required to deliver on their goals. It’s also about asking what they expect the obstacles to success will be and proving their acceptability of being uncomfortable in order to help the organization level up.
Adaptability when there is a pivot point.
While we all want to get it right the first time, there are almost always fine-tuning adjustments that need to be made along the way. We want to know how fast and nimble the leader is at doing that.
Ability to roll-up their sleeves and/or delegate to the right people and then back off while supporting them as-needed.
You owe it to your people (and plants) to give them an opportunity to grow. Permit them to work on stretch projects.
Desire to understand the business holistically, across all departments and levels of the organization.
One of the biggest challenges that leaders face is maintaining a fingertip feel for what people at all levels of the company are thinking. This is especially difficult to maintain with the frenetic pace in the cannabis industry.
Desire being part of the solution, not the problem.
An avoidance of pious judgments. We all need to hold the mirror up more often to ourselves, because people do not listen to us when we start criticizing them. You must take more control and ownership of outcomes within your sphere of influence as a leader in cannabis, and know it’s nearly impossible to hide out successfully behind a computer screen. No guts. No dirty fingernails. No glory.
An ability to say “no” to distractions so there’s time to get the job done.
So many distractions to manage through in the cannabis industry; i.e. There’s always a shiny object to distract in the way of a new vendor solicitation, a new tech to consider, another (virtual) trade show to participate in, the long line of candidates asking for some of your time, etc.
We look for curiosity.
We generally try to get people talking about something that is not directly related to their prior jobs, like how deeply they know their industry or their hobby. We want to know how curious they are to learn more than just what they need to know. Wanting to figure out how things work is so critically important, especially in the nascent cannabis industry.
An appreciation for the importance of being able to question authority and have debates.
Healthy friction and debates almost always get you to a better answer. You are in trouble if part of your culture suppresses disagreement. You want leaders who really want to make sure there is an environment of having open transparent debates rather than surrounding themselves with like-minded friends and family as many first-time founders/leaders have historically done in the cannabis industry.
How they themselves assess talent.
Much of our focus is to get the right leaders in place with strong team-building skills, so we prefer a track record of having people follow them to new companies because that’s always a good sign. A wide range of networks of relationships, well beyond their job, is a good measure of whether they know how to build relationships and collaborate.
Storytelling skills.
We like to learn about the mechanisms they use to mobilize their organizations and their ability to create a direct link between the boardroom strategy and what the average employee’s doing because good things happen when that link is tight.
Those moments in their career where they were forced to reexamine how they develop strategy and how they lead.
We ask about when they have failed. Good candidates will often have a lot of examples to share while others will tell you about one failure and externalize to somebody/something else to carry the blame. This conversation is also a key indicator of innovative thinking and risk-taking ability because those who do take risks are going to fail at times in their careers, and then have a better chance at succeeding in the cannabis industry.
Ability to manage ambiguity because they are not going to have all the answers to the real challenges that are playing out every day.
We are looking for people who have proven that they can deal with ambiguity and can operate outside their comfort zone in increasing areas of grayness. Somebody may be super in their current role, but it may be because it is the work they have always done and they’re in control of that world. If everything is not buttoned-down, they start getting out of their comfort zone and it really shows. What is important is being able to make the transition from controlling everything to building out and operating a completely different model. There are people who can adapt to that and there are people who just freeze and start complaining. “Your attitude defines your altitude.” The cannabis industry will test your attitude.
Comfort with showing vulnerability.
The emergence of vulnerable leadership has been a great pandemic gift.When you are focusing on growth and innovation, as we do on a regularly occurring basis in the cannabis industry, you must take risks. If you are taking risks, you are going to fail some of the time. When we are looking to put someone into a new role or to build out a leadership team, we want to know when that person has taken a risk and failed.What we are trying to understand is someone’s appetite for risk, but we are also interested in whether and how they ask for help. People are generally uncomfortable being vulnerable about the fact that they are making mistakes.We’ve shaped our view around team-building/leaders to focus on wanting people who take risks, because we don’t believe it’s possible to innovate and grow without taking risks; who have failed, because we don’t know how to truly take risks without failing some of the time; and who are really comfortable asking for help. It’s unrealistic to think that with all the talent available to us, that people still feel they have to solve everything themselves when they get stuck.
An ability to ensure their teams are acting like teams.
It is not so much about who gets credit for doing the most or who gets credit for any given task. Ultimately the real credit belongs to the person who is the biggest giver, the most generous, and the one who is most likely to help their teammate get off the mat when they’re down or help them do their job. It is important to remind ourselves and our teams that none of us are as smart as all of us, and we have got to stick together.
How they have led through a crisis.
Because let’s face it… pandemic or not, there’s always an existing or lurking crisis in the cannabis industry and no playbook to lead through it. You must rely on your team, because everyone has something to contribute. Right now, simple acts of kindness from present leaders will be remembered for a very long time. We’re also looking for examples of making decisions to protect the business, which requires making very tough choices to ensure the business has the necessary flexibility to weather the storm. Examples of how they opened the lines of communication with employees; disclosing to them what is known and what is not. Seizing opportunities to build and strengthen relationships with their workforce such as being very understanding of the stress that everyone’s under; staying in touch with those people and being attentive to their needs. Time isn’t on your side during a crisis, so we’re looking for people who have acted and pivoted quickly when something’s not working. Leaders must show up like a duck — calm on the surface but paddling like crazy under the surface to keep it all together. Not everyone has the same tolerance for stress and anxiety. True leaders in a time of crisis rise to the top, just like cream, whereas other people just cannot take it. We seek out people who are calm and focused; people we would want in our lifeboat in a crisis.
Authenticity and the ability to generally work based on unconditional trust with people.
If you must speak truth to power, being authentic helps. Taking everything people say as true on its face will backfire sometimes, but the ability to put up with those occasional moments in order to have most relationships built on trust is paramount. Also, do not gossip. Gossiping is often born of insecurity.
An understanding that leadership is a journey that does not end the moment they hit the C-suite.
For many, that is when the journey begins. We like leaders who know they must continually develop themselves, who don’t rest within their comfort zone, and who push themselves into new and different situations and expand their portfolio. They seek to be expansive. This is especially true for many cannabis c-suite professionals who have little to no previous leadership experience.
The stomach, experience, and awareness to deal with your startup environment.
We seek Builders > Maintainers, and those who are ready to bring a ‘No Limits’ mindset to the challenges ahead. Nearly every cannabis business is an extremely fast-paced environment with little processes and procedures in place. The ability to work under those conditions while beginning to put structure in place is paramount. Leading through enormous amounts of change means having the ability for self-management and helping the team cope with change at warp speed.
WHY interested?
We want talent that’s going to run hard at the opportunity vs. those who are simply running into your opportunity because they are running away from something else and your opportunity is in their path. Ask early and often about their “WHY?” and their DBM’s “Dominant Buying Motives”; i.e. uncovering what is on their Personal, Professional and Financial scorecards and why those things are important.
Finally, we ask ourselves the following questions:
“Would we want to work with/for this person? Would we have confidence in them if we staked our family’s livelihood on them? Do we have confidence in their ability to deliver? Do they have the ability to build a company that we would be proud to be associated with?”
Personally, I like to look at people through the “MIA Test” lens — would I want to be stuck in the Miami International Airport with this person for numerous hours? So much of work is who you work with. Who are the people that you want to be around? I think you are more willing to open up to, question and debate with people who you feel good about and like. However, you must ensure you are not doing this in exchange for harming your diversity and inclusion efforts. It’s not just people who are likeable, but who also think differently and bring different perspectives and experience to the table.
Those are some of our final gut checks while measuring essential skills such as honesty, candor, confidence and courage balanced with hunger and humility, strong verbal and written communication style, emotional maturity/intelligence, self-awareness, responsiveness, listening skills, ability to ask and answer tough questions, ability to receive and apply constructive feedback, and attention to developing other people.
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.
NCIA’s Human Resources Committee is comprised of Human Resource practitioners devoted to bringing best practices to the cannabis industry. Their focus is educating and bringing awareness to misclassification of employees, promoting guidelines for employee safety, clarification on wage and hour issues in the industry and creating checklists to being a legitimate employer.
Video: NCIA Today – Special Episode with NCIA’s Michael Correia On The Historic MORE Act House Vote
Join NCIA Deputy Director of Communications Bethany Moore and our Government Relations Director Mike Correia for a quick discussion about last week’s historic passage of the MORE Act.
On Friday, December 4, the House of Representatives made history by voting to approve H.R. 3884, the Marijuana Opportunity, Reinvestment, and Expungement (MORE) Act.
The MORE Act would remove marijuana from the federal Controlled Substances Act and work to repair the social and personal harms caused by federal marijuana enforcement. This is the first time since marijuana was made federally illegal that either chamber of Congress has held a floor vote on- or approved- a bill to make the substance legal again.
The final vote count of 228-164 fell mostly along party lines, with five Republicans crossing the aisle to support, and six Democrats voting to oppose.
This monumental victory shows just how far Congress has come over the years. Although this vote more closely aligns the House of Representatives with the majority of voters who overwhelmingly support cannabis legalization, the Senate is a different story.
Announcing NCIA’s Incoming Board Members
The results of NCIA’s 2021-2023 Board of Directors nominations process are in!
We are appreciative to have received so many very thoughtful and impressive applications from dozens of NCIA members seeking to fill six available seats. Congratulations to the incoming members, and thanks to everyone who applied for a seat this year.
Please welcome four new members and two re-elected incumbents.
The slate will be joining board members Narbe Alexandrian, Cody Bass, Omar Figueroa, Liz Geisleman, Ryan Hurley, Chris Jackson, Khurshid Khoja, and Manndie Tingler at the board’s next (virtual) meeting scheduled for January 27.
Member Blog: Four States Legalized Cannabis in November – Here’s What That Means for the Industry
Voters in New Jersey, Arizona, South Dakota, and Montana legalized adult-use cannabis sales during November’s election. So, what comes next?
Last month, Americans in four states voted to legalize adult-use cannabis.
If you’re an adult over 21 in Arizona, New Jersey, South Dakota, or Montana, theoretically, you’ll be able to consume and purchase cannabis legally in 2021.
To many Americans, the end of cannabis prohibition in these states looks like a sudden act of voter mobilization. But industry insiders know it took years of work by activists, business people, and lawmakers to make legalization possible.
Before adults can legally purchase and consume cannabis, lawmakers in each state must outline rules and regulations, and dispensaries must go through intense licensing processes before opening their doors to the public.
The process won’t happen overnight.
In some newly legal states, it could take close to a year to iron out the details. And in the past, it’s taken even longer.
Take Massachusetts, for example. Voters cast their ballots in favor of legalization in 2016, but the first dispensary didn’t open until 2018.
Maine’s citizens also voted in support of legal weed in 2016, but it took four years for the first dispensary to open. The first two retailers – SeaWeed and Theory Wellness – opened on October 8 of this year.
“It has taken four years to move from referendum to retail sales since Mainers narrowly approved the legalization of recreational cannabis at the ballot box in 2016. Legislative rewrites, gubernatorial vetoes, a change in state administration, and then the impact of COVID-19 pandemic have combined to make Maine’s rollout the slowest in U.S. history.” – Portland Press Herald
Lawmakers in New Jersey are trying to speed things up. Democratic Senator Nick Scutari wants to move quickly to pass legislation modeled off a 2019 legal cannabis bill he sponsored. Still, legislators are fighting over the details. New Jersey’s Medical Marijuana licensing policies force applicants to pay large sums to compete for a limited number of licenses, allowing big businesses with deep pockets and holdings in other legal states to make millions.
Some New Jersey lawmakers are trying to keep the same from happening when adult-use dispensaries open their doors by prioritizing local businesses.
Arizona lawmakers anticipate legal cannabis sales to begin as early as March. The state plans to prioritize licenses for owners “from communities disproportionately impacted by the enforcement of previous marijuana laws.” Arizona’s 123 medical marijuana dispensaries will have the first opportunities to apply for adult-use licenses in January after the Arizona Department of Health Services writes the rules.
Entrepreneurs in South Dakota and Montana are ready to apply for dispensary licenses, but they, too, will have to wait.
In South Dakota, lawmakers say dispensaries will be open and selling legal adult-use cannabis by July 1. In Montana, people should be able to legally purchase cannabis on October 1, barring any bumps in the road.
Have we reached a tipping point?
The public’s view of cannabis is changing. One in three Americans now live in a state with legal weed, and, according to a recent Gallup poll, 68% of Americans support federal cannabis legalization. So, have we reached a tipping point?
That’s hard to say.
Thirty-six states now have a legal medical cannabis system. When sales begin in Arizona, New Jersey, South Dakota, and Montana, more than twenty states will have fully legalized cannabis. And while federal cannabis reform might be a defining aspect of the incoming administration’s legacy, legalization is mostly dependent on congress, and it’s still unclear which party will control the Senate next year.
Democratic leaders have pledged to end federal cannabis prohibition. If the Democratic party wins Senate control, full legalization is almost a certainty. But if Republicans maintain their Senate majority, the Republican party’s past approach to cannabis doesn’t indicate their leaders are ready to support far-reaching reform. Still, federal cannabis legalization isn’t outside the realm of possibility, even with a Republican-controlled Senate.
Only time will tell.
And again, regardless of what happens politically, it’s obvious America’s opinion of cannabis isn’t what it once was.
Oprah asked former President Obama if he and Michelle indulged in “pizza, pot, or alcohol” on election night in a recent televised interview. When a television icon casually asks a former President if he smoked weed with the former first lady, you know attitudes are changing.
Could federal cannabis legalization be the key to healing our COVID-ravaged economy?
This year, COVID-19 slowed the progress of cannabis legalization for individual states, but the pandemic could help push federal legalization forward next year. Here’s why.
A federally legal cannabis industry would accelerate America’s economic recovery.
The pandemic has had a catastrophic impact on many industries, and while a lot of employees will return to work, many jobs will be forever lost. The longer it takes for people to find employment, the longer it will take for the economy to recover.
The end of federal cannabis prohibition would create thousands of new jobs and reverse the pandemic’s adverse economic impact.
Here’s a point to consider: according to estimates from New Frontier Data, America’s legal cannabis market could be worth nearly $30 billion by 2025 – and that’s without federal legalization. If government officials choose to end federal prohibition next year, the estimates will increase dramatically.
For cannabis dispensaries, cultivators, cannabis-adjacent businesses (like cannabis marketing agencies), and American citizens, a nationwide end to prohibition would be life-changing.
But again, what the immediate future holds is anyone’s guess.
Aaron Rosenbluth is Hybrid Marketing Co‘s Content Director, and he loves to write blogs. He’s written so many blogs that he’s lost count. And beyond his skills as a copywriter and storyteller, he’s an obsessive reader and researcher. Aaron writes on subjects ranging from cannabis to collaboration, social equity to HR software, interior design to cybersecurity. His words attract, engage, educate, and convert. Btw, Aaron hates the phrase “content is king” (even though content is king – and queen).
Hybrid Marketing Co is a Denver-based branding and marketing agency that specializes in building custom strategies that supercharge growth and drive revenue. Working with brands and businesses across the U.S. and Canada, Hybrid’s partners run the full-spectrum of the cannabis world including dispensaries, manufacturers, cultivators, and ancillary businesses. Visit hybridmarketingco.com to learn more about the Hybrid approach.
Video: NCIA Today – The MORE Act, 2020 Election, Board of Directors, and More!
Tune in to this month’s episode of NCIA Today with Deputy Director of Communications, Bethany Moore.
This month, we’re sharing even more important news about The MORE Act, an analysis of the results of the 2020 election, plus our own Board of Directors election results, and a new policy report from NCIA’s Policy Council. We review some clips from the educational panels from our very first CYBER edition of our Cannabis Business Summit & Expo.
We’re doing a great job staying home, wearing masks, and socially-distancing through these difficult times. We can’t wait to get back to hosting our national and regional events in person later in 2021. In the meantime, make sure you’re subscribed to our email list, and listening to NCIA’s weekly podcasts hosted by myself and Tahir Johnson. And now is a great time to invest in the future of our industry by getting more involved in NCIA, registering for our educational webinars, and learning more about the Diversity, Equity, and Inclusion Program SPONSORSHIP opportunities! Join NCIA members who have stepped up their support by becoming DEI Program Sponsors like 4Front Ventures and Greenbridge Corporate Counsel.
Member Blog: Augmented Reality CBD, Cannabis Product Labels – Entertainment Paves Path to Education
by Gary Paulin, VP of Sales and Client Services at Lightning Labels
Everyone loves good, entertaining stories. In part, their value lies in information — and education — sticking with recipients long after the storytelling has ended.
There’s a correlation in this to the value of Augmented Reality (AR) CBD and cannabis labels — which provide a novel, entertaining way to capture and keep audience attention. Along the way, product-makers have an opportunity to provide credibility-enhancing education about products, trends, quality control, and the like.
More than ever, consumers want to feel their products protect them. Likewise, cannabis and CBD manufacturer reputation and revenues hinge on consumers feeling safe using their products, and clear about proper (and improper) uses.
Augmented Realitybrings interaction and product labeling together, using smart device apps, and even your smart phone’s camera to create an enhanced user experience. When viewers download a related smartphone app and point it at the product’s label, they can see an array of different options including videos, 2D/3D content, social media sharing options, and content that enables seeing how products appear in the real world. A web-based interaction can be launched using your phone’s camera – just open your camera app and point it toward a QR code. In either case, the AR experience is initiated, and interacting with brand labels this way is fun, interesting, and can be extremely educational.
In many ways, it’s like hearing and seeing a story. When connected to useful, practical educational information, AR can fully address common and compelling consumer concerns at a time when fears about safety and health are at an all-time high.
In turn, this can assist manufacturers looking to gain another competitive edge when it comes to consumer awareness, preference, and sentiment. This further strengthens the labels’ role as the front door to product marketing and sales.
TrendHunter.com, dedicated to trend identification, notes that AR is gaining popularity in a variety of industries, ranging from food and beverage to cannabis. Regarding labels, the site notes: “The food and beverage industry adopts augmented reality-based labels… The use of AR in food labels is on the rise, with brands using such technology to both engage and educate their customers on the products they’re considering, or have already purchased. Such items cater to consumers’ continued interest in gamification, and add an element of interactivity that tends to be limited in product packaging.”
TrendHunter.com continues: “Though consumers tend to go online and research the details pertaining to products they purchase, the amount of information to sort through can be overwhelming. Thus, having brands do some of the work in relation to product education allows consumers the freedom to purchase in-person. With tech-integrations into labeling and packaging, this process is streamlined for consumers.”
Specifically targeting cannabis, TrendHunter.com emphasizes: “Virtual and augmented reality enters the cannabis space… The merging of augmented and virtual realities with the cannabis industry is on the rise as brands look to offer immersive experiences for connoisseurs and beginners alike. These platforms offer benefits like virtual product libraries and augmented package engagement — prioritizing both informative and creative experiences for viewers… For novice consumers, being informed about this emerging space is crucial in order to alleviate some of the apprehension they feel when they’re considering consuming a substance that was once attached with stigma and misinformation.”
Here are some hands-on, straightforward ways that AR-powered cannabis and CBD product labels can engage and educate consumers:
Show products being manufactured, establishing quality controls, purity and other credibility-building examples along the way;
Relate customer stories and reviews endorsing products, benefits and efficacy;
Address claims and controversies within the industry or involving the company itself;
Document complete tracking of products from seed to shelf, proving authenticity and quality control;
Provide ways (and encouragement) for consumers to interact with a brand via AR;
Offer easy social media sharing options, so that individual consumers can become brand information hubs via their networks.
Gary Paulin is VP of Sales and Client Servicesat Lightning Labels, a Denver-based custom label printer that uses state-of-the-art printing technology to provide affordable, full-color custom labelsand custom stickers of all shapes and sizes. Contact: sales@lightninglabels.com; 800.544.6323 or 303.481.2304.
Senate Race Runoffs in the Peach State
By Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations
As you’ve probably heard by now, which party controls the Senate won’t be known until January 5 — but those results could quite literally determine if marijuana will become federally legal over the next few years.
In Georgia, no candidate can advance through a primary or a general election system without first earning more than 50% of the votes. If no one does, the top two vote getters advance to a runoff election, ensuring that one will earn the majority of votes cast.
This year, the state’s two Senate races — one regular, the other a special election to fill the remainder of a retired senator’s seat — have gone to a runoff. The first will be between incumbent Sen. David Perdue (R) and Democrat Jon Ossoff; the latter will be between Republican Sen. Kelly Loeffler and Democrat Rev. Raphael Warnock. If Democrats win both seats, the Senate will be tied 50-50, and Vice President-elect Kamala Harris would be the tie breaking vote.
It can’t be overstated that the Democrats have an uphill (but not impossible!) battle ahead. In November, Sen. Perdue garnered 86,000 more votes than Ossoff, while Warnock benefited from the fact that two Republicans — both Sen. Loeffler and Rep. Doug Collins — were on the ballot in his race, splitting the party’s votes.
And of course, it’s 2020, so I would be remiss not to mention the pandemic! The runoff is taking place in an off-election year in (what will likely still be) the middle of a serious surge of COVID-19 cases. On top of that, Republicans historically have a stronger track record of turning out in runoffs in the state.
Despite all of that, Democrats are working hard to turn out the vote and organize early. In addition to relying heavily on both first-time voters and Black voters, Democrats are also hopeful that young voters will be the key to winning the runoff in January. Ossoff recently said:
“There are 23,000 young people here in Georgia who will become eligible to vote just between the November election and this January 5 runoff, and a decade of organizing, much of this work led by Stacey Abrams, has put the wind in our sails here in Georgia. What we’re feeling for the first time in four years is hope.”
As I said before, which party controls the Senate could quite literally be the difference between whether or not cannabis could become federally legal in the next one to two years. Senate Minority Leader Chuck Schumer (D-NY) was interviewed in October and said:
“I’m a big fighter for racial justice, and the marijuana laws have been one of the biggest examples of racial injustice, and so to change them makes sense. And that fits in with all of the movement now to bring equality in the policing, in economics, and in everything else. Our bill is, in a certain sense, at the nexus of racial justice, individual freedom and states’ rights.”
Schumer was referencing the bill he introduced, the Marijuana Freedom and Opportunity Act, which would remove cannabis from the Controlled Substances Act, allowing states to set their own policies. It also includes provisions to help funding to cannabis businesses owned by women and people of color through the Small Business Administration; funding studies on traffic safety, impairment detection technology, and health effects of cannabis; restricting advertising that could appeal to children; and setting aside $100 million over five years to help states develop streamlined procedures for expunging or sealing prior cannabis convictions.
Time is of the essence. Voters must be registered by December 7 in order to participate in the runoff election. If you’re in Georgia, or know anyone who is a resident, please check out the Cannabis Voter Project to learn more and make sure you’re ready to vote. If you can, consider making a donation to the Ossoff campaign or the Warnock campaign. The future of cannabis legalization in this country depends on it!
Commmittee Blog: NCIA’s Diversity, Equity, and Inclusion Committee Offers Critiques and Recommendations for Illinois Social Equity Dispensary Licensing Process
by NCIA’s Diversity, Equity, and Inclusion Committee
We are NCIA’s Diversity, Equity, and Inclusion Committee (DEIC), comprising experienced professionals representing a diverse range of backgrounds. In response to the early results of the Illinois Adult Use Dispensary application process, and with the interest of supporting Illinois’ Social Equity efforts, we felt compelled to reach out and offer our analysis and recommendations.
While the creation of the Social Equity Program in the Cannabis Regulation and Tax Act and Illinois Department of Financial and Professional Regulations (“IDFPR”) implementation of the licensing scheme was well-meaning and intentioned, the recent litany of lawsuits and outcry from advocacy groups following Illinois’ inaugural issuance of cannabis licenses indicates heavy criticism. As demonstrated thus far, the Social Equity Program appears limited in its ability to capture a sufficient representation of persons most harmed by the War on Drugs in Illinois in business licensure and ownership, or to generate the opportunities for restorative justice and building generational wealth for such persons as hoped.
Our intention with this letter is to state our express desire to lend the expertise and resources of NCIA’s DEIC to support Illinois legislators in crafting Illinois’ licensing and regulatory systems in a manner that reflects the Social Equity Program’s laudable mission of reducing barriers to cannabis business ownership, and establishing a legal cannabis industry that is equitable and accessible to those most harmed by the disparate enforcement of drug-related laws in Illinois. Furthermore, we hope to lend support to local organizations building toward that same goal, and to form a coalition as we all strive to rectify the harmful effects of prohibition and the War on Drugs.
At this time, and pending further collaboration with local officials, NCIA’s DEIC makes the following recommendations for your consideration. For further understanding of the analysis supporting these recommendations, please see the attached report.
For IDFPR to move forward with license scoring and issuance as soon as possible, we suggest the following:
Removing the required possession of premises and overhead to hold on to property (not required of dispensary applications and may bankrupt existing applicants awaiting results)
Ensuring oversight of KPMG (the 3rd-party firm hired by the State of Illinois to score the applications) by persons of color and social equity representatives
Allowing for a documented appeals process internally with KPMG results before issuing them to all applicants
Scrutinizing Operating Agreements in the rubric and gradient to ascertain and avoid predatory or straw-man agreements
Moving forward, reasonable transparency would include knowing what the makeup and process was for KPMG in making their first evaluations, and what the process will look like for the re-scoring to avoid conflicts of interest. Specifically, IDFPR can ensure transparency by making the following information public:
Evaluation Rubric
Composition of the Reviewers
Scoring Process and Determination of Grading
Frequency of KPMG Meetings
KPMG Public Relations Contact
Timeline of Events During the Scoring Process
Lessons Learned and Plan for Improvement on Future Scoring Rounds
For future rounds of applications, we offer these recommendations:
Pre-qualifying social equity applicants for state funding to ensure economic empowerment in the application process
Providing a path forward for those who are not (yet) qualified to operate a cannabis business, but are qualified as social equity applicants
Allowing for 100% Social Equity Applicant owned businesses to qualify for cannabis experience points without partnering with a multi-state operator (“MSO”)
Issuing delivery licenses for social equity operators
We also express our support for the recommendations made by the Cannabis Business Association of Illinois’ Minority Access Committee, in their October 5, 2020, letter to Governor Pritzker. (see here)
Finally, we appreciate the efforts taken by Governor Pritzker, the Illinois legislature, and IDFPR thus far to address disparities in the application process and commend Governor Pritzker for taking leadership on this important issue. Allowing this first generation of applicants to address deficiencies in their applications, as it was originally intended to allow them to do, offers another opportunity to enter the lottery system, which we recognize and appreciate.
Additionally, the commission of a disparity study is commendable and should prove helpful in understanding what went wrong and how to improve. If anything, we hope our expertise and professional experience will assist in this process and in the effort to improve upon the mistakes of the past to achieve a more diverse, inclusive, and socially equitable future.
Thank you for your time and attention to this matter. Please let us know if we can assist in any way.
Sincerely,
The National Cannabis Industry Association Diversity, Equity, and Inclusion Committee
Company executives and human resources professionals often talk about company culture as if it were a faraway planet, dreamy to think about and look at, but impossible to grasp. Now more than ever with a global pandemic and civil unrest, company culture is crucial to the success of a business.
So what is it?
Well simply put, company culture is defined as a set of behavioral and procedural norms observed by an organization. Typically, we use policies, procedures, codes of conduct, values, goals and initiatives to mold and shape our company culture. From the employee relations perspective, company culture is a company’s personality.
What are the different types of company culture?
There are many different types of company culture and some industries tend to gravitate towards certain cultures more often than others. The three main types of company culture are leadership, traditional, and innovative.
Leadership company culture focuses on developing employees and helping them grow in their careers through mentorship and coaching. The main idea is to create an organization of leaders, because as many say, a team is only as strong as their weakest link.
Traditional company culture is the most conventional style of company culture and it tends to get a bad reputation for being “stuffy.” Most folks wear suits and ties, there are a lot of rules and policies in place and there tends to be a clear organizational hierarchy.
The last company culture type, and probably most effective for the cannabis industry, is an innovative company culture. An innovative company culture is focused on the development and innovation in the business. This culture tends to break down the barrier to allow for open communication and transparency. Innovative company culture tends to be inclusive and accepting of individuality. Many innovative and creative employees tend to thrive in this setting and thus do amazing work for innovative companies.
What affects company culture?
Outside of the policies and procedures, there are other factors that shape our company culture including company goals, backgrounds and experiences of the aggregate employee workforce, leadership styles, rewards, and disciplinary systems in place as well as local and national government policies. I’d also add cultural norms with the local and national government, as that heavily affects our company culture. For instance, we often look to Europe with mastering work-life balance due to shorter workweeks and longer maternity leaves.
The backgrounds and experiences of the aggregate workforce is also a huge factor we often overlook. If we have an unconscious bias on our recruitment team, chances are, the entire organization will mirror that make-up, backgrounds, and experiences of the in-house recruiters, which leads to a lack of diversity across the board.
Why is company culture important?
Company culture within an organization separates the successful businesses from the failing businesses. In fact, poor company culture will almost always result in high turnover, poor customer experience, disengaged employees, lower morale and eventually lower profitability.
What is Human Resources’ role in company culture?
What can you do as a human resources professional within an organization to support company culture?
Carry out organizational values day-to-day
Effectively communicate company culture through recruiting and new hire processes
Clearly define roles and responsibilities of each employee within the organization
Provide continuous learning and development
Sustain reward and recognition systems
Administer and maintain performance management
What can Human Resources Assess and Develop Company Culture?
Many organizations harness the power of employee experience survey instruments to determine the success (or failure) of their company culture. After developing an appropriate assessment tool, the next step is to administer the assessment properly. Be sure there’s a goal for participation and a plan of action to attack following up with employees who haven’t completed the assessment.
This is where a lot of organizations fall off. After obtaining responses, you must analyze and actually communicate the results of the survey in a town hall. From there, you work on your areas of opportunity in focus groups within the organization. Most focus groups consist of volunteers from all departments and different levels of seniority and experience.
The next step is to actually take action and begin implementing changes that can improve your areas of opportunity addressed in the survey. This assessment process is iterative, so after following through with suggested changes, you follow up routinely with the same assessment. While this process seems daunting, it shows your employees that you actually care about their experience and want to improve as an employer.
As we continue to develop and evolve as an emerging industry, keep company culture at the forefront of your efforts. Remember, if you take care of your employees, they will take care of your customers, and that growth and profits will absolutely come naturally.
Rashaunah “Shawnee” Williams is the co-founder at Illinois Equity Staffing, an MBE and WBE firm based in Chicago, that supports the cannabis industry in education, job placement, human resources, payroll and social equity & diversity compliance. 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. She is a member of IWC, Chicago NORML, MCBA, the Cannabis Equity Coalition, Cannabiziac, and BIPOCANN. She also serves on the Human Resources Committee with the National Cannabis Industry Association and the advisory board of Cannabiziac.
ACTION ALERT: Congress to Vote on Historic MORE Act
The Marijuana Opportunity, Reinvestment, and Expungement Act (H.R. 3884) is expected to come to a vote in the U.S. House of Representatives in December 2020. NCIA has been building support for this bill in Congress for the last year and now we need your help!
Please call your member of Congress and ask them to vote YES on the MORE Act today!
Look up your congressional representative and contact info by zip code, here.
Reference our congressional scorecard to find out if your representatives are sponsoring NCIA’s priority legislation, including the MORE Act.
Sample script to help guide your call:
Hello! My name is _______________ and I am a constituent of yours in (city, state, zip code). I am calling today to ask that Representative _____________ votes “Yes” on H.R. 3884, the MORE Act, when it comes to the Floor for a vote in December.
This bill would remove cannabis from the Controlled Substances Act at the federal level, leaving marijuana policy up to the individual states. It also creates avenues towards expungement, re-sentencing, and assists those communities that have most been impacted by the failed war on marijuana. Additionally, legal cannabis is a huge economic driver and would help both the federal government and states’ revenue shortfalls during this pandemic.
Thank you for your time today. Again, I hope Representative _____________ will vote “Yes” on H.R. 3884, the Marijuana Opportunity, Reinvestment, and Expungement Act.
*Feel free to tell a personal story if you feel it is relevant or powerful, but remember that staffers are busy so sometimes short and sweet is best!*
Summary of the Marijuana Opportunity, Reinvestment, and Expungement Act of 2019:
The Marijuana Opportunity, Reinvestment, and Expungement Act (H.R. 3884, S. 2227), commonly known as the MORE Act, was introduced in 2019 by House Judiciary Committee Chairman Jerry Nadler (D-NY) and Senator (now Madam Vice President-Elect) Kamala Harris (D-CA).
This bill would:
Decriminalize cannabis federally: The bill removes cannabis from the Controlled Substances Act, leaving cannabis policy up to the states
Allow for expungement of marijuana convictions and arrests, sealing of records, and re-sentencing: Requires federal courts to expunge prior convictions and arrests and seal court records for those not under a current criminal justice sentence and requires courts, on motion, to conduct re-sentencing hearings for those under a criminal justice sentence.
Establish sales tax and “Opportunity Trust Funds”: Authorizes the assessment of a 5% sales tax on marijuana and marijuana products to create an Opportunity Trust Fund, which includes three grant programs:
The Community Reinvestment Grant Program, administered by the Department of Justice, would provide services to the individuals most adversely impacted by the War on Drugs, including job training, re-entry services, legal aid, literacy programs, youth recreation, mentoring, and substance use treatment.
The Cannabis Opportunity Grant Program, administered by the Small Business Administration (SBA), would provide funds for loans to assist small businesses in the marijuana industry that are owned and controlled by socially and economically disadvantaged individuals.
The Equitable Licensing Grant Program, also administered by SBA, would provide funds for programs that minimize barriers to marijuana licensing and employment for the individuals most adversely impacted by the War on Drugs.
Make available SBA programs and services to cannabis businesses: Specifies that the SBA may not negate eligibility for loans and other services based on a business being cannabis related.
Clarify federal public benefits: Prohibits the denial of any federal public benefit (including housing) based on the use or possession of marijuana, or prior conviction for a marijuana offense.
Protects immigrants: Provides that the use or possession of marijuana, or prior conviction for a marijuana offense, will have no adverse impact under the immigration laws.
Provide for data Collection: Requires the Bureau of Labor Statistics to collect data on the demographics of the industry to assess whether people of color and those who are economically disadvantaged are participating in the industry.
Age equity for juveniles: The bill applies equally to juveniles and adults, protecting young people from harmful criminal records.
#CannaBizSummit 2020 – A Look Inside the Live Virtual Event
NCIA’s Annual Cannabis Business Summit & Expo, held virtually as the inaugural Cannabis Business Cyber Summit, was a great success! November 10-12, attendees took part in live programming and interaction, enjoying unmatched access to the cannabis industry’s leading experts, latest research, and most innovative products and services through the Cyber platform.
Our three days of #CannaBizSummit education and experiences, totaling over 150 hours of industry content and 30 exhibiting sponsors, is now available for on-demand viewing through December 10, 2020. Register now to gain access.
Highlights from #CannaBizSummit
On Day 1, keynote speaker and GRAMMY Award-winning musician Carlos Santana gave an inspiring talk, where he discussed the benefits of cannabis, music, and the significant, personal mission behind his cannabis brand, Mirayo. “Mirayo is my being, my light, it honors my mother,” Santana said. On financial success, he says, “For me being profitable is if you have peace and joy, if you don’t have those two things, you are lost.”
The event featured exhibit halls on the first two days, where attendees could source, learn, and live chat with all participating exhibit sponsors. Participating sponsor, MJ Freeway, said, “We were thrilled to have the opportunity to sponsor and participate in NCIA’s Cannabis Business Cyber Summit. The sessions and speakers were impressive, and the platform was engaging. Our team made some new connections and followed up with some old friends.”
Other highlights from Day 1 include a cannabis cooking demo with Chef Travis Petersen and NCIA education sessions, “From Sweets to Scale: Edibles Innovation & Trends for Infused Products,” and “The Social Equity Dilemma: What Lessons Did We Learn from Illinois, and How do we Proceed?”
In the session, “Running for Office & Advocating as a Cannabis Entrepreneur,” Cody Bass of the Tahoe Wellness Center spoke on the importance of getting involved in local and national politics as a cannabis advocate. “We cannot continue to depend on politics as normal and think that things are going to change,” Bass said. “We have to become engaged to a point of not just lobbying, but really start to become the elected that represent our community.”
The CannaVest investment forum was also completely virtual and coincided with the Cannabis Business Cyber Summit, November 10-12. CannaVest included valuable sessions designed with the specific needs of the institutional investor and sophisticated accredited investor in mind. From timely roundtables like, “The Multi-State Operator Roundtable: A Look at Business Plans & Operating Models in a COVID World,” to panel sessions, such as, “M&A and Capital Raising: A Look at the US Public Markets,” there was something at CannaVest for all investment-minded attendees. CannaVest was supported by eight sponsoring companies who met with and showcased their products and services within the Cyber exhibit hall.
On Day 2, 2020 Presidential candidate Andrew Yang joined us as our Cyber Summit keynote speaker. In his powerful discussion, Yang discussed universal basic income, the recent presidential election, cannabis legalization, the ongoing COVID-19 pandemic, and more. “The future is bright,” Yang said. “This is going to be one of the major growth industries over the next number of years. If you keep working, the market will be there for you.” Read this story on Marijuana Moment about Yang’s thoughts shared during his presentation about the prospect of cannabis legalization with Joe Biden as U.S. President.
Day 2 also featured a yoga session, the MediPharm Lab Tour presented by President and Director Keith Strachan, and educational sessions on topics like how to set a higher standard in manufacturing infused products, how to be a marketing leader in the ongoing COVID-19 pandemic, and how to create a circular economy.
Attendees joined NCIA’s co-founder and CEO, Aaron Smith, on the final live day of #CannaBizSummit for a keynote presentation marking the 10th anniversary of the association’s founding and a discussion on where the cannabis industry stands today. Speaking on the success of five states – Arizona, Mississippi, Montana, New Jersey, and South Dakota – in legalizing some form of cannabis use in the recent election, he said: “This could not have happened if not for this legal industry setting an example for the world of what it looks like to replace prohibition with responsible cannabis businesses.”
Attendees also enjoyed valuable sessions featuring panels of experts, such as, “Cannabis Marketing Technology: Are you a Laggard or a Leader?,” “Breaking into New Markets: 4 Steps to Becoming a Successful MSO,” and many more. In “The Michigan Market and Beyond,” attendees heard from the state’s Marijuana Regulatory Agency on important issues impacting the agency. Andrew Brisbo, leader of the Marijuana Regulatory Agency, said, “I think it’s very important to be cognizant of the cost of doing business and not have regulation just for regulation’s sake. We want to make sure that Michigan is in the best position for the future we are seeing.”
All 150+ hours of this exceptional content are now available for viewing through the Cyber virtual platform through December 10, 2020, to all registrants. For those who did not register and attend the live days but are interested in participating, NCIA members and license holders can register through December 10 for free, with non-members paying just $49. A Cyber pass includes access to all recorded content as well as the virtual expo hall where you can visit sponsor booths and download resources for your business.
Thank you again to all those who joined us for our live days of Cannabis Business Cyber Summit. Be sure to save the dates for our 2021 events, where we hope to see you in-person.
Explore NCIA’s website to stay up to date on 2021 event information.
What to Watch in the Lame Duck Session
by Madeline Grant, NCIA’s Government Relations Manager
Following the presidential election, we’ve entered the lame-duck session. This occurs after an election, but before new members are sworn in, and allows for time on the legislative calendar for Congress to pass additional legislation. Before Congress heads home for the holidays, a new administration takes office, and the 117th Congress returns, let’s take a look at what to keep an eye on during the lame-duck session.
Banking Access
The House of Representatives has approved the SAFE Banking Act in some form THREE times in just over a year. The text of the Secure and Fair Enforcement (SAFE) Banking Act has passed through two different COVID-19 relief packages on the House side: the HEROES Act, and the HEROES Act 2.0, and also passed as standalone legislation in September 2019. However, in the upper chamber, we’ve seen Senators criticize including marijuana components in coronavirus legislation, arguing that it is not germane to the issue at hand. Specifically, Senate Majority Leader McConnell (R-KY) took to the floor to complain that the House bill provides “special treatment to the marijuana industry,” stating that the legislation “mentions the word ‘cannabis’ more times than the words ‘job’ or ‘jobs.’” Regardless, it’s evident that SAFE banking has bipartisan support and could help mitigate the spread of the virus by ending the industry’s reliance on cash transactions.
Additionally, Senate Minority Leader Chuck Schumer (D-NY) introduced a coronavirus relief bill last month that contains the SAFE Banking Act. We’ve seen pushback from the Republican-controlled Senate and the Trump administration, however, Senator Schumer’s inclusion of cannabis provisions is a positive sign that Democrats will make an effort to continue to push for these provisions. As Congress and the Trump Administration continue to negotiate coronavirus relief legislation, we will continue to keep our eyes on banking. Also, a friendly reminder to call our representatives and senators and encourage them to support cannabis banking reform. If they are already a champion on our issues, thank them for their support.
The Marijuana Opportunity, Reinvestment and Expungement (MORE) Act
Regardless of all of the trials and tribulations that 2020 has brought, there is still great excitement and optimism around the MORE Act! House Majority Leader Steny Hoyer (D-MD) confirmed that marijuana legalization is still on the table before the presidential transition and will get a vote in December. Previously, Representative Hoyer announced this past summer that the chamber would vote on the MORE Act in September, but that plan was postponed following pushback from certain offices who were concerned about the optics of advancing cannabis reform before passing another coronavirus relief package.
The MORE Act is the most comprehensive cannabis legislation to date. The bill would: federally deschedule cannabis, completely removing it from the Controlled Substances Act, expunge the records of those with prior marijuana convictions and impose a federal give percent tax on sales, revenue from which would be reinvested in communities most impacted by the drug war. Additionally, the legislation would also create a pathway for resentencing for those incarcerated for marijuana offenses, as well as protect immigrants from being denied citizenship over cannabis and prevent federal agencies from denying public benefits or security clearances due to use. The fact that we have a potential vote on the MORE Act before the end of the 116th Congress is exciting news for the cannabis community. As we gear up to the end of the year, look out for updates on the MORE Act, and remember, please call your representative and senators and urge them to support this significant piece of cannabis legislation.
Success Through Hardship in the 116th Congress
This year has been unlike any other year we’ve faced as a country. Since March, Congress has exhausted their legislative efforts to agree on coronavirus relief bills. With differences on both sides of the aisle and with the administration reaching any sort of legislative success seems near impossible. However, on a positive note we’ve seen our champions on Capitol Hill not give up on cannabis-related provisions. Although we are faced and halted by frustrations in the Republican-controlled Senate, we still see members of Congress working to include the much-needed cannabis reform our nation is calling for. Not to mention Election Day – Arizona, Montana, New Jersey, and South Dakota all passed measures making cannabis legal and regulated for adults, while Mississippi and South Dakota chose to legalize medical cannabis. Every success and victory in cannabis policies around the country creates more momentum for Congress to fix the out-dated cannabis laws. As we wrap up the 116th Congress, we will be left with more momentum than ever before to enter the 117th Congress to reach new legislative victories.
2021 Cannabis Policy Outlook
Three Takeaways From The 2020 Election
by Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations
It may not feel like it, but election season 2020 is drawing near an end – mostly. While many of us have been glued to the news for what feels like an eternity, let’s take a look at what actually happened and focus on three main takeaways from the election and how they may impact cannabis policy in the 117th Congress.
Democrats maintained their majority in the House of Representatives — by a slimmer margin than expected
For the last two years, Democrats have held the majority in the House by a margin of 232-197. Many people in Washington and pollsters believed that that majority would increase this cycle, however, that was not the case. As of publication, Democrats hold 216 seats to Republicans’ 196, with 218 seats needed for the majority. A total of 23 seats have still not been called.
While votes are still being counted, it is expected that Democrats will retain a comfortable majority in the lower chamber. Leader Hoyer has already publicly committed to a vote on the MORE Act by the end of the year, which is expected to pass. However, the legislation will surely need to be reintroduced next session and will hopefully have a swift path through the legislative process.
The bottom line: Democratic leadership and committee chairs in the House have been incredibly receptive and supportive of reforming our outdated cannabis laws. Expect to see more of that in the 117th Congress and keep an eye on comprehensive bills like the MORE Act, and incremental bills like the SAFE Banking Act.
We won’t know who won the Senate until January 5
The race to control the Senate continues. As of publication, both Democrats and Republicans hold 48 seats, with four races (Alaska, North Carolina, and both Georgia seats) yet to be called. It’s expected that the Republican incumbents in both Alaska and North Carolina will hold on to their seats, which would give Republicans a total of 50 seats. That means the Senate majority will likely hinge on the two runoff Senate races happening concurrently in Georgia.
In Georgia, no candidate can advance through a primary or a general election system without first earning more than 50% of the votes. If no one does, the top two vote-getters advance to a runoff election, ensuring that one will earn the majority of votes cast. This year, the state’s two Senate races– one regular, the other a special election to fill the remainder of a retired senator’s seat — have gone to a runoff. The first will be between incumbent Sen. David Perdue (R) and Democrat Jon Ossoff; the latter will be between Republican Sen. Kelly Loeffler and Democrat Rev. Raphael Warnock.
In terms of cannabis, the uncertainty around the majority in the upper chamber leaves big question marks. If Democrats are able to take the majority, Leader Schumer (D-NY) has committed to bringing cannabis legalization up for a vote. Democratic committee chairs would also be more likely to bring up cannabis-related bills. However, if Republicans maintain control, we can expect more uphill battles. An important asterisk to that statement, however: Sen. Pat Toomey (R-PA) is expected to replace current Senate Banking Committee Chairman Mike Crapo (R-ID) if the GOP retains control. While Sen. Toomey is not a known cannabis champion, advocates feel optimistic about working with him on bills like the SAFE Banking Act.
We now (presumably) have a new President, Vice President, and Administration to work with
Former Vice President Biden and California Senator Kamala Harris are now presumably the President-elect and Vice President-elect of the United States. The campaign made history not only in terms of voter turnout but also by electing the first-ever female and woman of color vice president. President Trump has yet to concede and has vowed to fight the results, however, there has been no proof of voter fraud and the Biden/Harris team is already getting to work on the transition.
What does this mean for cannabis? President-elect Biden has repeatedly voiced his support for decriminalization, while future Madame Vice President Harris is the main Senate sponsor of the MORE Act. She has also continuously reiterated her commitment to expungement and resentencing for those convicted of cannabis offenses. Advocates also feel optimistic about working with a new administration that could potentially codify reform in various ways, such as memos.
Bonus: cannabis initiatives won big on election night
ICYMI, the real winner last Tuesday was marijuana! Arizona, Montana, New Jersey, and South Dakota all legalized adult-use cannabis, bringing us to 15 states with legal marijuana. South Dakota and Mississippi also legalized medical cannabis, bringing that total to 36 states. Want to learn more about what happened? Check out this awesome post NCIA’s Media Relations Director, Morgan Fox, put together.
I don’t know about the rest of you, but I think this was one long and anxiety-inducing election cycle! The results are still trickling in, but here at NCIA, we’re excited to continue working on behalf of you and your business. Have more questions about the election, or want to chat with our government relations team about the results? Find Mike, Michelle, Maddy, or Andrew over on NCIA Connect. Talk to you there!
Election Night 2020: Victories For Sensible Cannabis Policies
by Morgan Fox, NCIA’s Director of Media Relations
While the country waits for the outcomes of national elections that could very well impact the future of cannabis policy reform advocacy, we do have a LOT to be happy about today!
Last night, adult-use and medical ballot initiatives SWEPT the elections, passing in every state in which they were considered!
Voters in Arizona, Montana, New Jersey, and South Dakota all passed measures making cannabis legal and regulated for adults. South Dakota also approved a medical cannabis initiative by an even greater margin, and was joined by Mississippi where an overwhelming majority of voters not only supported medical cannabis but chose the much more comprehensive of two competing options.
You can learn more about these initiatives here and how they fared in the elections here.
There are a lot of important milestones and lessons to observe from these historic results.
First, let’s talk about New Jersey. Roughly two thirds of voters in the state approved this ballot measure, which was referred to them after lawmakers were unable to pass similar legislation last year. This is a big jump in ballot approval margins; before now, the most popular legalization referendum was in California, which approved Proposition 64 in 2016 with 57% of the vote. That’s a 10% margin increase in just four short years! The large population and huge market potential (more than $1.5B by 2025) are sure to have a major impact on the industry. Regionally, passage of this initiative is certain to add urgency to adult-use cannabis regulation efforts in states like New York, Pennsylvania, Connecticut, Delaware, and Rhode Island.
South Dakota also set a record by becoming the first state to approve an adult use law before having an established medical cannabis system, and in a very conservative state no less! Voters supported both medical and cannabis initiatives despite strong opposition from the governor and other officials.
In Arizona, after voters narrowly defeated a legalization initiative in 2016, a significant swing brought a 10% increase in support resulting in passage. This long-overdue change is especially important because Arizona is the only state where simple possession is a felony and nearly 15,000 people are arrested every year.
So what does this mean for future reform efforts?
First and foremost, the passage of the adult use initiatives means nearly 34% of Americans now live in states with laws making cannabis legal and regulated for adults. These four states account for roughly 60,000 marijuana arrests every year, mostly for simple possession. Congressional representation of states where cannabis is legal for adults will increase by 29 representatives and eight senators. This doesn’t guarantee their support for cannabis legislation, but it certainly increases the chances.
Second, passage of cannabis policy reform initiatives in conservative states like Mississippi, Montana, and South Dakota should send a signal to Republican lawmakers in Congress that this is an issue that they can support, and one which they will face political consequences for impeding. The fact that all three of these states had multiple cannabis-related issues on the ballot and voters were not swayed or confused is a testament to the will for change in these areas and a growing understanding of the issue.
Long story short: more and more states will continue to enact sensible, modern cannabis policies in the coming years, and every state that does so will help add to the chorus of voices from the public and in Congress calling for an end to outdated federal prohibition policies.
Video: NCIA Today – #Election2020 Special Episode
Did you miss the special live stream of NCIA Today this Election Day morning on Facebook? Get caught up to speed with this recording of the episode while we prepare to see results the results coming in as Americans cast their votes all across the country.
Cannabis is on the ballot in states across the country and a new Congress will be elected today, possibly the one that will end federal cannabis prohibition. Join NCIA staffers for an exclusive power hour of cannabis conversations with elected officials, Hill staffers, campaign directors, and more.
Committee Blog: Leading With Heart
by Nichole McIntyre, SPHR, SHRM-SCP, Director of Human Resources at urban-gro Member of NCIA’s Human Resources Committee
Want to inspire? Lead from the heart.
I recently attended the Empower 2020 virtual conference where Claude Silver of VaynerMedia held a fireside chat. She is the first person in a professional capacity to have the title “Chief Heart Officer.” What I heard from Claude over the next hour was energizing, though she claims she doesn’t see herself as an inspirational leader. Her modesty came through tenfold as she spoke about her journey toward her role at VaynerMedia, and the lessons she learned along the way. Claude never aspired to have a career in Human Resources, in fact, she doesn’t even consider herself an HR professional. Her message came through loud and clear – it is about the people. Plant the right seeds, and watch them grow. The success of VaynerMedia is undeniable, and it starts at the top by leading with heart. I was definitely inspired.
How many times have we heard it? Business is business, it is not personal. This type of thinking has largely contributed to the state of affairs in which we now find ourselves, which is a heightened state of anxiety in the workforce. The time to start making things personal, and lead with the heart, is at a tipping point. Seize this moment to let employees know you care about the whole person and not just the worker.
All of our working norms have been turned upside down, and it is no wonder there’s a secondary plague of anxiety with a new focus on mental health and employee well-being. With the seismic shift to remote work, many employees have assumed multiple additional responsibilities, in and outside of the office. For working parents, the additional stress of remote learning has caused concern about their abilities to maintain performance levels at work. For some, there is a daily anxiety when it comes to choosing between job responsibilities and engaging as a parent toward the educational development of their children – a choice no one wants to be required to make. Talking with employees to understand both professional goals and personal circumstances is critical.
Increase Communication.
People have an innate longing to connect. Yes, even the introverts. There has never been a better time to increase communication and ensure best practices, such as 1:1’s, employee development, and performance evaluations are taking place. Employees need to hear feedback and understand how their contributions and performance are viewed by both their direct manager and the company, as well as instilling a sense of purpose by identifying how these contributions impact the overall health and strategy for the organization.
Open Yourself Up To Vulnerability.
During these touchpoints, do a lot more listening. Employees need to feel free to communicate anxieties, fears, or concerns. You can model vulnerability by putting yourself out there and sharing your own experience. As a leader, it is your responsibility to create a space where employees feel safe to share information that may be perceived as uncomfortable. When you create the ideal employee ecosystem for each individual, employees are happier, engaged, and more creative. Your company will not only foster an exceptional culture, but you will also reap the rewards financially and improve your reputation in the market.
Invest In Their Development.
Let your employees know you are invested in them and you care about their development. Take advantage of free webinars, launch a book club initiative or a mentorship program. These types of development opportunities have very little cost to the organization, yet reap solid rewards. Further, these initiatives also provide a connection point where insights can be gleaned and you can understand prospects for development that matter most to your employees. These conversations are unique to each individual, as we all have different learning styles, interests, and skillsets on which to focus.
As I mentioned earlier, treating the whole human is critical at this time. Over the past six months, we have become armchair therapists as we help employees navigate an unknown world. Leaders who have the ability to flex their style to meet the needs of their employees will experience a higher level of success and happiness in their teams and business. Ensuring employees have all the tools necessary to navigate the complexities forced upon us overnight is essential. Employee Assistance Programs (EAP) are a good example and typically low cost in comparison to the value they provide. These programs not only provide the mental health benefits needed for employees to navigate life’s challenges but often make leadership and employee development tools available as part of the package.
Becoming an employer of choice is a choice you can make. Companies must do things that set themselves apart from others and capitalize on what makes them unique. We need to stop expecting a square peg to fit into a round hole and individuality should be valued. As leaders, we must adapt to the needs of the workforce, embrace diversity, and value the unique talents each person brings into the organization.
Collectively, we have chosen to work within an industry still fighting for legitimacy. We have the opportunity in a new industry to set the standard rather than follow the status quo, and have certainly followed unconventional methods to get here. Setting the trends for employee well-being and exceptional workplaces can be the imprint we leave on the fabric and future of the working world. We are finding ourselves under a tidal wave of change. The opportunity is before us, let us meet the moment and lead with heart.
I will leave you with a poignant thought from another inspirational and exceptional leader: “I’ve learned that people will forget what you said, people will forget what you did, but people will never forget how you made them feel.” ― Maya Angelou
Nichole McIntyre is the current Chair of the NCIA Human Resources Committee and Human Resources Director for urban-gro, Inc., a leading engineering design services company and system integrator. Nichole spent the bulk of her 20+ years in Human Resources in the Consumer Products Manufacturing industry, and intentionally pivoted her direction and passion for Human Resources to the Cannabis Industry in 2018. Her goal is to elevate the perception of both Human Resources and the Cannabis Industry through advocacy, engagement, leadership, and coaching. Nichole has served on the NCIA Human Resources Committee since 2018, and was an avid supporter of SAFE Banking legislation during the 2019 NCIA Lobby Days event in Washington D.C. Nichole holds both SPHR and SHRM-SCP Certifications and a Bachelor’s of Science in Business Administration from DeVry University. She is also currently enrolled at Keller Graduate School of Management, where she is just 4 classes away from obtaining her Master’s in Human Resources Management.
Video: Member Spotlight – HAL Extraction
NCIA recently visited with our members HAL Extraction based in Golden, Colorado. While social-distancing with the team there, we learned more about their extraction rooms, booth, and labs, and how operators can get their cannabis extraction production facility up and running. The company’s Chief Engineer, Josh Gladfelter, gave us a tour and demonstration of the capabilities of their product offerings, while Sales Manager Emma Byrnes explained how the company works with customers to find solutions to their specific needs. As explained by the company’s President, Patric Galvin, HAL Extraction is focused on leading the way for industry’s safety standards, helping facilities achieve compliance, and the longevity of our industry. Learn more and take a tour in this NCIA member video spotlight.
Log In to NCIA Connect to Watch #CannabisCaucus CYBER Recordings
All 2020 Cannabis Caucus CYBER recordings are available on NCIA Connect, the exclusive members-only community for the cannabis industry.
We missed seeing your faces in person but were happy to still visit with our members in the Southwest, Midwest, and Northeast regions at our CYBER events.
These lively evenings of education and entertainment – all from the comfort of our homes – took everything you love about theCannabis Caucus events and reformatted it into a one-of-a-kind virtual experience. If you missed these virtual events in September, you can get all caught up to speed on industry insights delivered firsthand from national and regional leaders.
Be sure to catch the Ohio Cannabis Caucus Cyber recording with Congressman Dave Joyce (OH-14) and the Pennsylvania Caucus with Congressman Brendan F. Boyle (PA-02) with important updates in those states.
NCIA members can log in to NCIA Connect to revisit today!
Movement for Marijuana Marks Major Milestones in Montana
by Madeline Grant, NCIA’s Government Relations Manager
Over the last month, we’ve featured many blogs focused around key congressional races and cannabis policy reform ballot initiatives taking place in various states. As we are days away from the 2020 election, we can’t stress how important it is to get out and vote. We’ve heard from our peers, families, social media influencers, celebrities, news mediums, and much more about how each and every single vote counts – so do your civic duty and make sure that your voice is heard! If you need help determining if you’re registered, or need more information about anything election related, you can click here for some great resources.
This week, I want to dive a little deeper and discuss the two ballot initiatives that Montanans will vote on this November: Initiative 190 and Initiative 118. Initiative 190 would regulate cannabis for adults age 21 and older. Initiative 118 would allow legislation or a citizen initiative to set the legal age limit for possession at an age higher than the state definition of adulthood (18 years old).
First, let’s take a look at statutory Initiative 190, which legalizes, regulates, and taxes marijuana in Montana. I-190 legalizes the possession and use of limited amounts of marijuana for adults over the age of 21. The initiative also requires the Department of Revenue to license and regulate the cultivation, transportation, and sale of marijuana and marijuana-infused products and to inspect premises where marijuana is cultivated and sold. Additionally, it requires licensed laboratories to test marijuana-infused products for potency and contaminants. This initiative also establishes a 20 percent tax on non-medical marijuana, 10.5 percent of the tax revenue goes to the state general fund, with the rest dedicated to accounts for conservation programs, substance abuse treatment, veterans’ services, healthcare costs, and localities where marijuana is sold. The initiative would allow a person currently serving a sentence for an act permitted by the initiative to apply for resentencing or an expungement of the conviction. Lastly, I-190 would prohibit advertising of marijuana and related products.
Of course, when you look at any state that has legalized cannabis, there is the ability to generate millions of dollars in new tax revenue. According to the University of Montana Bureau of Business and Economic Research, Montana will generate $236 million in marijuana tax revenue by 2026. The general fund will net four million dollars. As ballot initiatives pass it is important to allocate the tax revenue to important causes that help communities and people and this is exactly what this initiative does as it would contribute to accounts for conservation, veterans’ services, substance abuse treatment, healthcare, and local governments. On top of that marijuana fees will fund program administration and enforcement.
The constitutional Initiative 118 allows the minimum legal age for marijuana to be set at 21 years old. Currently, under the Montana Constitution, a person 18 years of age or older is an adult, except that the legislature or the people by initiative may establish the legal age of purchasing, consuming, or possessing alcoholic beverages. This initiative amends the Montana Constitution to allow the legislature or the people by the initiative to establish the legal age for purchasing, consuming, or possessing marijuana.
When learning more about New Approach Montana, the main backer of Montana’s cannabis initiatives, they clearly stated why legalizing cannabis is a step in the right direction. Along with the significant tax revenue, Montana can improve access to medical marijuana for veterans and rural Montanans. They stated that despite Montana’s medical marijuana law, doctors at the VA are prohibited from recommending medical marijuana to their patients. By legalizing marijuana for all adults, veterans will be able to safely access it to treat chronic pain, PTSD, and other serious health conditions. Montana can stop wasting law enforcement time and resources on arresting people for personal marijuana possession. Treating marijuana as a criminal issue wastes law enforcement resources and needlessly cycles people through the criminal justice system. In states that have legalized marijuana for adults, police have more time to solve serious crimes.
As we gear up for election day it is important to note just how important these ballot initiatives are in our laboratories of democracies: the states. As more states reform their outdated cannabis laws, it puts more pressure on the federal government to fix our broken laws surrounding the war on drugs. With more states moving forward, it is evident that constituents have spoken in support of legalization; therefore, more representatives and senators on Capitol Hill must support their cannabis reform. If you would like more information on these ballot initiatives or would like to donate to the cause please do so here. Please stay tuned for more blogs coming your way post-election. If there is anything you have questions about feel free to contact our Government Relations team at madeline@thecannabisindustry.org.
2020 Senate Races To Watch
by Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations
Photo By CannabisCamera.com
As you may have heard by now, Election Day is just around the corner! Let me take this opportunity to remind you to vote, to do so safely, and come up with an election plan! If you need help determining if you’re registered, or need more information about anything election-related, you can click here for some great resources.
Over the last two years, NCIA and the cannabis industry have had some success in Washington, D.C.: passing the SAFE Banking Act out of the House, passing the MORE Act out of committee (we expect a full House vote during the lame duck session!), and even getting the language of the SAFE Banking Act included in three proposed COVID-19 relief packages. But, the same challenge has remained: the upper chamber of Congress, the Senate.
This year, there are 35 Senate seats up for election, and the results will impact cannabis policy for years to come (remember, Senate terms last for six years). Let’s take a look at three races that could not only impact cannabis policy, but the makeup of the Senate as a whole.
Arizona
Incumbent: Sen. Martha McSally – Republican
Challenger: Mark Kelly – Democrat
The Details: Senator Martha McSally, Mark Kelly, and seventeen other write-in candidates are running in this year’s special election in Arizona. The winner will fill the rest of the 2017-2022 term that former Sen. John McCain (R) won in 2016. You may remember McSally’s name– that’s because back in the 2018 general election, McSally ran for Arizona’s other Senate seat and lost to Kyrsten Sinema (D) 47.6% to 50.0%. After the 2018 election, interim Sen. Jon Kyl (R) announced his resignation and Gov. Doug Ducey (R) announced McSally as Kyl’s replacement in December 2018. Easy to keep up with, right?!
On Cannabis: This year, Arizonans will vote on Proposition 207, which would legalize adult-use cannabis in the state. During a debate in October, the candidates were asked about the initiative. Mark Kelly responded, “I think I’m gonna vote yes. It has some provisions in there to decriminalize it and address some incarceration rates for marijuana offenses — I think that’s good. I think there’s a funding source there. So I’m probably gonna vote yes.” When asked if he’d support removing marijuana as a Schedule 1 narcotic were such federal legislation to come before him, Kelly replied, “Based on my vote here in Arizona, I would seriously consider removing it.”
Senator McSally, on the other hand, has been essentially silent and inactive on this issue since assuming office. Last month, when asked about the initiative, McSally said “I’ll let the Arizona voters decide that [Proposition 207].” During her time as a Congresswoman prior to being appointed to the Senate, McSally voted against several cannabis-related appropriations amendments. She has not co-sponsored any cannabis-related legislation in the Senate.
Colorado
Incumbent: Sen. Cory Gardner – Republican
Challenger: Former Governor of Colorado, John Hickenlooper – Democrat
The Details: This race is one of the most contested in the country– both the Democratic Senatorial Campaign Committee (DSCC) and the National Republican Senatorial Committee (NRSC) have added it to their election target lists. The previous three U.S. Senate elections in Colorado—2016, 2014, and 2010—were decided by margins of 5.7, 1.6, and 1.7 percentage points, respectively. Gardner was first elected in 2014 after defeating incumbent Mark Udall (D) 48.2-46.3%.
On Cannabis: Sen. Gardner has long been touted as one of the most pro-cannabis Republicans in the Senate. He has sponsored and co-sponsored a number of cannabis bills, including the STATES Act and the SAFE Banking Act. However, Sen. Gardner has been unable to convince his colleagues to bring SAFE Banking up for a committee vote, or even have a simple hearing on the STATES Act. That being said, if Republicans retain control of the Senate, but Gardner loses his seat, it may have adverse consequences for the cannabis industry.
During his time as governor, Hickenlooper actively opposed cannabis legalization, even going so far as to unsuccessfully campaign against the state’s marijuana legalization ballot referendum. He then went on to implement it after voters approved the measure. During his last year as governor, he also vetoed proposals to add autism as a medical marijuana qualifying condition, to increase flexibility for investments in the cannabis industry, and to allow dispensaries to operate tasting rooms. But Hickenlooper has come a long way since then– his campaign website states, “As U.S. Senator, I will fight to remove cannabis from classification as a Schedule I drug.” Plus, he even responded to an op-ed penned earlier this year by NCIA’s own Social Media Manager, Vince Chandler, tweeting, “Yes, I support decriminalizing & descheduling marijuana. Colorado set the gold standard, and I’m eager to work with you and Colorado’s cannabis industry and entrepreneurs to get this done in Washington.”
Montana
Incumbent: Sen. Steve Daines – Republican
Challenger: Former Governor of Montana, Steve Bullock – Democrat
The Details: Incumbent Sen. Daines was first elected in 2014 with 58% of the vote. Bullock was first elected Governor of Montana in 2012 with 49% of the vote to his opponent’s 47%. His margin increased in 2016 when he won 50% to 46%. That same year, Donald Trump (R) won Montana in the presidential election with 56% of the vote to Hillary Clinton’s (D) 36%.
Both the National Republican Senatorial Committee and the Senate Majority PAC, a Democratic PAC, have targeted the race. Prior to announcing his bid for Senate, Bullock joined the crowded Democratic presidential field before dropping out in 2019.
Implications: This year, there are two cannabis-related initiatives on the ballot in the Treasure State. Montana I-190, the Marijuana Legalization Initiative, is on the ballot and would legalize the possession and use of marijuana for adults over the age of 21, impose a 20% tax on marijuana sales, require the Department of Revenue to develop rules to regulate marijuana businesses, and allow for the resentencing or expungement of marijuana-related crimes. The second initiative, Montana CI-118, the Allow for a Legal Age for Marijuana Amendment, would amend the Montana Constitution to allow for the legislature or a citizen initiative to establish a minimum legal age for the possession, use, and purchase of marijuana, similar to the regulation of alcohol in the state constitution.
While neither Senate candidate has weighed in on the state’s cannabis initiatives, we do have some understanding of their views on the issue– Sen. Daines has consistently voted in favor of appropriations amendments related to hemp, medical cannabis, and banking. In 2015, he co-sponsored an industrial hemp bill. It’s important to note that all of these votes were more than three years ago. On the other hand, while running for president last year during July 2019, Bullock stated, “I think this [cannabis legalization] should be left up to the states. I think the federal government should get out of the way and this is a state-by-state decision.”
Now, remember to get out there and VOTE! Here at NCIA, we’ll be analyzing other initiatives, candidates, and what it all means for you and your business as we get closer to the election, and doing the same once we get the results!
Member Blog: Are You Practicing Your A, B, R’s? Yes, “R.”
by John Serrantino, co-founder and Chief Strategy Officer of EzHire Cannabis
Why it is critical to “Always Be Recruiting” in the cannabis industry and how to do it.
The cannabis industry is primed for unprecedented growth in the coming months. Today posting a job can yield thousands of candidates in a matter of hours. In the post we will discuss why this may not be the blessing it appears and how businesses can adapt to handle the influx of talent coming into the cannabis industry.
It seems like everyone wants to work in cannabis these days. With the retail industry experiencing damage that has accelerated its demise, a more diverse candidate set is flocking to cannabis as the industry continues to grow. At EzHire Cannabis, a talent engagement platform, we have identified three distinct buckets of candidates:
Retail Refugees – these are candidates with extensive experience in a retail setting, including middle and upper management. This pool of candidates is short on cannabis experience but seasoned when it comes to creating a retail customer experience.
Silicon Valley meets cannabis – when it comes to the evolving needs of cannabis, technical knowledge is at a premium. IT support is necessary as digital storefronts become vital. Digital marketing & communication, particularly to maintain business-to-business relationships, has become a priority over face-to-face interactions.
Advancing from within – as new markets open the talent from more established markets is proving willing to relocate. Finding this type of talent isn’t easy but it can be critical when starting a cannabis operation in a new market where industry experience is near impossible to source locally.
Cannabis Talent is Building
The legal cannabis market currently employs nearly 300,000 people with exponential growth expected in the coming years. That means there are a lot of prospective candidates with real experience. Unfortunately, there are three core problems that hinder your hiring efforts:
Those experienced professionals aren’t always actively looking for jobs
Experienced candidates aren’t always located in your backyard
Your competitors may be able to lure these candidates to their business before you
In the 1992 film Glengarry Glen Ross, Blake, an aggressive big city salesman played by Alec Baldwin, introduces a sales team to the “Always Be Closing” mentality to drive business. While this advice hasn’t really aged well for sales, when it comes to staffing your business, it is applicable. Best practice dictates the need to “Always Be Recruiting.” This practice, known more commonly as active recruiting, involves networking with those already in the industry to improve your reach and visibility to those prospective candidates.
Best Practices for Finding Talent
The most common methods of active recruiting involve:
Attending industry networking events – virtual or otherwise these are a great way to get face time with a mix of industry professionals.
Leveraging Technology – as the stigma around working in the industry fades, top talent has migrated to LinkedIn. A smart business owner or hiring manager will build a strong network via the platform.
Monitor industry trends nationwide and share that knowledge – if you’ve built a strong social network, you’ll want to keep them educated. This helps engage the right people for your business.
Balancing Priorities While Getting Results
While it can feel like a lot of work to constantly be recruiting, the benefits far outweigh the time investment in the long run. Take for example the way an experienced hire, be it in retail or lab testing, is able to come in and “get stuff done” with limited onboarding and handholding. Most businesses find those candidates primarily need training on protocols and processes specific to the business rather than a full background in the industry which can be time-consuming and expensive.
Hiring Managers have consistently expressed feeling overwhelmed by the sheer amount of applicants they receive when they post for a position. They simply do not have time to sort through thousands of resumes to find the diamonds – and resumes often do not tell the full story, requiring a phone screen and in-person interviews to really get to know whether the applicant is a fit.
Fortunately, within the industry, there are a number of ways to streamline these motions. In fact, this post offers insight into some of the ways you can work toward securing top talent. Bringing on a new employee is an investment you are making in your business, taking the steps outlined above serves as a great way to make sure you are getting the highest probability of a return on that investment.
Happy Hiring!
John Serrantino is the co-founder and Chief Strategy Officer of EzHire Cannabis. EzHire Cannabis offers technology forward solutions for business owners and hiring managers to enable their growth. Founded in 2017, originally as Fortuna Business Solutions, EzHire represents the first talent engagement platform for the cannabis industry. Prior to joining EzHire, John was an early-stage employee at multiple successful startups including as Director of Sales for Seattle-based CRM, PipelineDeals and Director of Client Services at Philadelphia-based remindermedia. John and his wife Sarah reside in the Tampa Bay area and are active in the animal rescue community.
It’s autumn, and that means where I live, the temperatures have dropped from an insufferable 110 to a pleasant 85 degrees. In other parts of the country, leaves are turning color, the nights have turned chilly, and change is in the air. And all of this has me wondering, what happened to the summer?
This was the summer that wasn’t. With the pandemic, activities were curtailed, vacations were canceled, and nothing seemed normal. Like many companies, we adjusted our workflow to morph into a combination of virtual and in-person, and we implemented new sanitary and social distancing protocols. Cannabis was deemed essential, so with a few adjustments, we were able to carry on business as usual. And this got me thinking about how much we have to be able to adapt in order to survive and thrive.
One of the things I most enjoy in life is giving back to others. I’ve had a fair amount of success in my career and have learned a thing or two, and now I love passing along that knowledge and helping the younger generation get a foothold and better navigate their own pathway through the world of business.
And of all the things I’ve learned throughout my career, the one that has helped the most, especially through this complex and challenging time, is the ability to be flexible.
No, I’m not taking up yoga, although that’s probably a good idea. I am referring to being flexible in business.
When we are young and the whole world is in front of us, we think that all things are possible. The road ahead is uncluttered with roadblocks and there are no speed limits.
As we mature, we realize that life will throw a few obstacles at you, and a key component to success is how well you are able to overcome these challenges and keep moving forward.
The one thing that is constant in business is change, and without flexibility, failure is almost certain.
Think of the American companies that could not adapt to changing circumstances: Retailers like Kmart, Sears, and many others, have not been able to compete in the new world of online commerce and are all but gone. But Walmart continues to refine its online strategy and recently reported that e-commerce sales are up 74%. Target, another retailer that understands how to change with a changing world, reports online sales revenue will jump 24 percent this quarter. These two companies have embraced flexibility.
Borders Books is another giant that couldn’t adapt to a changing marketplace. While consumers were switching to e-books, Borders kept building new brick and mortar stores and focused on growing its CD and DVD department – clearly out of step with the changing times.
Not so long ago, Blockbuster was the place to go to rent movies. The company could have become a leader in digital entertainment but only made a last-minute and unsuccessful attempt to transition to the new platform. Today, they are gone.
The fact is, there are countless examples of companies that have shuttered because they could not adapt to changing times.
In the cannabis industry, change comes at a rapid pace. Laws and regulations are in almost constant flux, and if you are not prepared to quickly pivot and change directions, you will be left behind.
From overly aggressive expansion to stockpiling potentially unsellable inventory to not keeping enough capital on hand to handle those “rainy days,” there is a myriad of problems that can seemingly come out of the blue and dramatically impact a cannabis company’s ability to function.
I’ve seen this with my own eyes, far too many times.
In today’s world, and especially in the cannabis industry, it is vital to look ahead and maintain flexibility. Because before you know it, it will be spring and the world will be different… once again.
Pamela Donner is COO of High Point Jewelry, and is an experienced C-level corporate executive, with an impressive history of growing companies, navigating successful business turnarounds, launching new products, and implementing structural organization changes to reduce costs and maximize profits.
She is currently COO of multiple companies in the legal cannabis and CBD industries, including
Gel Cap Concepts, LLC – a manufacturer of cannabinoid-infused products; the Uncle Herbs, Naked Vape, and Desert Azee brands; and High Point Jewelry – the world’s first luxury cannabis-inspired jewelry company. She is also a partner in a CBD retail store and is COO of a popular dispensary.
Donner was named the 12th Most Powerful Woman in the Cannabis Industry by Cannabis Business Executive Magazine, and was listed as one of America’s Finest Entrepreneurs by Business Management News.
Pam resides in Scottsdale, Arizona with her husband, Glenn Murray.
Possession:Adults 21+, 1 ounce flower or 5 grams concentrate
Home cultivation:YES, adults 121+ may have up to 6 plants in an enclosed locked location out of public view.
Licenses:
Issue no more than one marijuana establishment license per 10 pharmacies;
Issue no more than two marijuana establishment licenses in counties that contain no registered nonprofit medical marijuana dispensaries;
Issue no more than one marijuana establishment license in counties with one nonprofit medical marijuana dispensaries; and
Issue 26 licenses, notwithstanding the other limits, to entities qualified under the Social Equity Ownership Program.
Social Equity: Department of Health Services would be required to establish a Social Equity Ownership Program to promote cannabis business ownership and employment for individuals from communities disproportionately impacted by the enforcement of previous marijuana laws.
Proposition 207 would establish a fund called the Justice Reinvestment Fund (JRF). Revenue in the JRF would be allocated as follows:
35 percent to local public health departments in proportion to the county’s population for the purpose of providing justice reinvestment programs or giving grants to nonprofits to provide justice reinvestment programs within the county’s area.
35 percent to DHS to provide grants to nonprofits to provide justice reinvestment programs in the state.
30 percent to DHS “for the purpose of addressing important public health issues” that affect Arizona.
Taxes & Revenue:
Transaction Privilege Tax (currently 5.6%)
Specific 16% excise tax (non-medical)
Revenue from the excise tax and license fees would be deposited into the Smart and Safe Arizona Fund. First, revenue would be used to implement and enforce marijuana regulations. The remaining revenue would be allocated as follows:
33.0 percent for community college districts;
31.4 percent for municipal police and fire departments, county sheriff departments, and fire districts;
25.4 percent for the state’s Highway User Revenue Fund;
10.0 percent for the new Justice Reinvestment Fund; and
Alternative 65A – Rep. John Thomas “Trey” Lamar and Rep. Brent Powell
Possession:
Initiative 65 – Qualifying patients may purchase/possess up to two and a half (2.5) ounces every 14 days
Alternative 65A – Undefined, no explicit protections
Home Cultivation: NO
Licensing:
Initiative 65 – TBD by Dept. of Health; no limits on number of treatment centers; may not be located within five hundred (500) feet of a pre-existing school, church, or licensed child care center
Alternative 65A – Undefined
Social Equity: None explicitly included in either initiative.
Taxes & Revenue:
Initiative 65 – Dept. of Health may authorize taxes up to the level of the state sales tax (currently 7%); revenue to be used for special operating fund and may not revert to state general fund
Ballots: Initiative 190 Marijuana Legalization Initiative (adult use), CI-118 Allow for a Legal Age for Marijuana Amendment
Summary:
Initiative 118 would allow legislation or a citizen initiative to set the legal age limit for possession at an age higher than the state definition of adulthood (18 years old).
Initiative 190 would regulate cannabis for adults age 21 and older.
Possession: Adults 21+, up to one ounce of flower or 8 grams of concentrate
Home Cultivation: YES, up to four (4) plants per adult, maximum eight (8) per household.
Licensing:
The Department of Revenue shall develop rules and regulations regarding licensing of providers, marijuana-infused products providers, and dispensaries for adult use. For the first 12 months, only existing medical cannabis licensees may apply. Provider licenses are established in tiers based on canopy size and also include micro-business licenses. Applicants must have resided in Montana for at least one year prior and may not have been convicted of a felony involving fraud, deceit, or embezzlement or for distribution of drugs to a minor within the past 5 years. Cannabis businesses may not be located within 500 feet of a school or place of worship unless permitted by the local jurisdiction.
Social Equity: Persons convicted of behavior permitted by Initiative 190 may apply for resentencing or expungement.
Taxes & Revenue:
Specific sales tax – 20%
Revenue will be used to fund operating costs of regulation as well as to support conservation efforts, substance abuse treatment and education, veterans programs, local governments, the general fund, and other programs. More information is available here.
In a recent announcement by the IRS, they may allow deductions through Section 471, but it is still unclear this impact as of this writing is still unclear, so with that said, I am proposing this argument because of the impact needed TODAY to help in the economic recovery effort, given it is an election year, as well.
Before I begin, please do not construe my argument as a Republican argument for legalization. When I say conservative, I am speaking from a purely fundamental belief and values perspective, not a contemporary political ideology. There is hypocrisy on both sides and I recognize this fact.
Having a nonprofit background, most of my life has been spent hovering on the political lines, mostly policy, not parties. Liberals are traditionally more aligned with causes than conservatives, although conservatives have traditionally been more fiscally supportive of charitable causes. Why are conservatives more fiscally supportive of charitable causes? Conservative values.
The most undervalued weapon in the fight for legalization
In the fight for legalization, there appears to be a definite challenge from conservatives.
I came into this industry four years ago and noticed a disconnect between the arguments from the industry and the conservative response. Although support is growing from conservatives, most of the arguments being discussed for legalization seem to be falling on deaf ears.
Why is that? It is because the current arguments for legalization are being fed to conservatives in a language which they do not understand and are hearing as a direct challenge to their values.
The values and language of the right are fundamentally different from the left in most ways. One value which is, in my opinion, grossly undervalued by the industry is philanthropy.
Timing is everything
The health and economic ramifications of COVID-19 have caused us to look at the government and our nonprofit sector for help. The political discourse of our governments, from local to federal, unfortunately, is not helping to meet the needs of individuals or communities and thus someone has to step up. Something I haven’t heard many conversations about is our community-based nonprofits and how they are working to address the needs around COVID-19 and the economic challenges COVID-19 has manifested. Nonprofits, which are on the front line of meeting communities’ needs, from animals to veterans and every population in between, are fighting a battle from a deficit position.
The COVID-19 pandemic has cut into nonprofits’ resources while increasing demand for their services.
According to the Stanford Social Innovation Review’s “Giving With Impact Podcast,” our community nonprofits, especially 501(c)(3) nonprofits, are being “…asked to do more with less money and reduced staff while taking on an expanding client population, and all of this at the same time that revenues from services have dried up and donations from their traditional fundraising activities have declined. Some have had to lay off staff and cut salaries and others have had to cut programs.” This is according to Amir Pasic, the Eugene R. Tempel Dean at the Lilly Family School of Philanthropy at Indiana University and a professor of philanthropic studies. He also highlights that although disasters cause a spike in giving, which the pandemic did, in a recession, which seems to be a by-product of the political response to COVID-19, he states, “…we see the opposite effect… It took many years, several years, for individual giving, in particular, to recover. So in recessions giving does go down, simply because the resources that we have available go down, as well.”
Amir also states in the podcast that “…over 60% of nonprofits are anticipating significant decreases in terms of their fundraising ability. And I think many of them will be in crisis further, depending, in part, also, in terms of how federal help continues or does not continue going forward… So there is certainly a sense of crisis and pressure for many nonprofits because their services are increasingly… many of them in the human services, increasingly in need, and yet there is the sense that their sources of revenue are going to be under severe pressure at the same time.”
In the same podcast, Mary Jovanovich, Senior Manager for Relationship Management at Schwab Charitable, states that clients involved with their donor-advised fund are actually giving 50% more at this time. Looking at this in the most simplistic way, those who can give more are giving more, but giving is being done by fewer people and thus still creating a deficit.
Together we CANNA make a difference!
Of course, those companies and people who are doing extremely well are the usual suspects. But what about a flourishing industry? One which is new and growing, and has been growing through a pandemic? An industry that is doing better than most industries and has the reach and means to impact the communities which they serve and beyond? What would be holding them back from coming to the rescue of the communities they serve and ultimately helping the entire nation?
Well, not to put too fine a point on it, but taxes!
If you are a company with an effective tax rate of between 60 and 70%, you might need to hold on to your profit in order to make sure you and your employees survive in case something else is looming on the horizon. Say an election?
Imagine a time when the cannabis community comes together to elevate those nonprofits which are providing the most impact on our economic and social recovery. The world is watching and in awe of the support being provided to tens of thousands of deserving nonprofit 501c3’s and the Senate is watching as thousands of the nonprofits in their states are participating, which is a statement that they are willing to accept support from the cannabis industry. This is the way you sway minds and hearts.
The Conservative Argument for 280E Reform
Conservatives believe in free markets and thus less regulation, in the belief that the growth of companies and the economy will thrive and ultimately self-regulate as much as it can with limited governmental intervention. This needs to be applied to the cannabis industry as well. But not just for the reasons you may think. 280E reform needs to take place NOW so that philanthropy can be elevated and help address COVID-19 and economic recovery challenges.
The effective tax rate is high specifically due to the IRS code 280E, which does not allow cannabis companies to write off typical business expenses, things like marketing, depreciation on equipment, and other expenses including charitable donations to 501c3 nonprofits! Just imagine what could be done if a cannabis company, many of which are already giving without the tax advantage, was given a tax incentive to donate? Everyone understands the taxes imposed by the states and municipalities for the legal purchase drive the cost of cannabis up. So the margins are fairly thin when compared to that of other companies that do not have to abide by 280E. 280E is government regulation. Conservatives tend to be for free markets. If, as we all know, even my fundamentalist Christian friends know, that cannabis will be federally legal eventually, why not take this opportunity to deregulate this industry allowing it to assist in addressing community resource deficits at a time when it is needed most? This argument also addresses the fundamental hierarchy, which conservatives believe should be the path of assistance, self, family, church, community, local government, and finally state government, in that order.
I do not mention the federal government, because another value of conservatism is small government and that the federal government is there to protect the inalienable rights of humans as well as the right to property. Traditional conservatives believe in a helping hand, but only a temporary one as they understand many might not have all the support systems in place mentioned previously.
So the argument for 280E reform, in the context of nonprofits and helping with the health and economic crises stemming for COVID-19, addresses the conservative values of human rights, property rights, individual responsibility, free markets, lower taxes, and deregulation of businesses.
The Conservative Argument for Banking Reform
Now, imagine that 280E was reformed or no longer applicable to LEGAL cannabis companies. There is still a problem. Even if 280E was rescinded for the cannabis industry, banks may still not allow them the same banking services because it would in effect still be federally illegal. If this is the case, even if a company chose to donate to a willing charity, the charity would fall under these very same banking laws and thus might not be able to deposit funds from the cannabis industry into their bank accounts, running a risk that their accounts could still be closed for accepting money from a federally illegal activity. So truly, banking and 280E reform are not just a cannabis industry issue, but a nonprofit sector issue, which needs to be addressed sooner than later!
Now, we all know many charities will still not accept the funds offered from cannabis companies due to many factors, however, many of those most impacted by the pandemic and economic decline, such as those focused on food, housing, homelessness, veterans, mental health, senior citizens, and others, could benefit from receiving funds from cannabis companies as their own resources are diminishing. Therefore, the fight for our nation’s recovery needs to include banking and 280E reform for an industry which can make a difference for many!
Because TOGETHER WE CANNA MAKE A DIFFERENCE (If given the opportunity)!
Founder of Corporate Compassion, LLC and DBA CannaMakeADifference, Kevin J White is a social entrepreneur, nonprofit evangelist, volunteer activist, community engagement advocate, tennis player, golfer, BUCKEYE, and Avid shoe wearer.Kevin began his journey into social entrepreneurship after a 20+ year career in the nonprofit sector. Having started his career as a direct care counselor for at-risk children he advanced through the nonprofit sector, eventually moving to Colorado for a job with a major animal welfare nonprofit, overseeing 4 departments and over 100 staff and volunteers, eventually creating his own nonprofit 501(c)(3) public charity. With a strong background in nonprofit management and resource management, he began his cannabis journey through his Colorado-based, 501c3 nonprofit, having to identify the benefits and challenges of accepting support from the cannabis industry. He realized that there were some challenges for both sectors and decided to further his social entrepreneurship by consulting with cannabis companies looking to strengthen and develop their cause-marketing and philanthropic goals. This was the birth of CannaMakeADifference.
CannaMakeADifference is a strategic consulting company created to assist purpose-driven cannabis companies with meeting their cause-marketing and philanthropic goals. He has co-authored two white-papers, one for cannabis companies and one for nonprofits, highlighting the benefits and challenges of working with each other.
Kevin also hosts a podcast called Together We CANNA Make A Difference which highlights philanthropy in the industry and companies making a difference from the cannabis sector. You can download the podcast on most major podcast platforms including Google Podcasts and Apple Podcasts.
2020 Marijuana Ballot Initiatives – Time to Make History!
by Madeline Grant, NCIA’s Government Relations Manager
With the election coming up just around the corner, 2020 could be another big year for our movement. It is imperative that we all head to the polls, send in our mail-in ballots and make our voices heard in this monumental election. This week I will briefly go over each ballot initiative that has officially qualified for the November ballot. As we continue to get closer to the election, I will get into detail about what each ballot initiative does for each state. 2020 has been a year of uncertainty and as we approach the election it is our duty as U.S. citizens to get out and vote and as members of the cannabis industry, it’s important that we support the expansion of markets by donating to initiative campaigns.
Without further ado please see marijuana ballot initiatives below:
More information provided by the Marijuana Policy Project here.
Nebraska – Medical marijuana ballot initiative is no longer happening due to the Nebraska Supreme Court deeming the legalization of medical marijuana on the November ballot as unconstitutional. Following over 180,000 signatures by Nebraskans in support of the measure, the Supreme Court decided to not include the vote on November’s ballot on the day before the deadline. The justification of unconstitutionality came from Nebraska’s single-subject rule for a ballot measure, which bans multiple issues into yes-or-no questions for voters to address.
It is more important than ever to get out and vote. Our government relations team works hard in our nation’s Capital to achieve legislative victories at the federal level; however, achieving legislative victories at each state is just as important. It is through each successful ballot initiative at the state that provides the proof and support for legislative change and policy reform at the federal level. States are moving forward; therefore, we must be on Capitol Hill. We must keep fighting the good fight and get out and show our support for cannabis policy reform.
Are you interested in any of these states or want to learn more about one of these ballot initiatives? If so, please feel free to reach out to me to set up a meeting to discuss the information in more detail or contact the campaigns directly to find out how you can support them.
Member Blog: Creating a Diverse, Inclusive, and Sustainable Cannabis Industry
This year, a national outcry against police violence and the impact of COVID-19 on Black and brown communities initiated a reckoning with the legacies of oppression and injustice in the U.S. Along with recognizing our institutionalized and internalized racism, we have started to come to terms with our economic inequality now that the income gap is worse than it has been in 50 years and three families alone control more wealth than 50% of Americans.
As with the rest of the country, the cannabis industry is lived differently based on the intersectionalities of race, class, gender, orientation, (dis)ability, and veteran status. For example, already wealthy, white, male individuals have amassed fortunes in cannabis with roughly 74% of U.S. cannabis businesses owned by men and 81% by whites, according to a 2017 Marijuana Business Daily survey.
After most states designated cannabis “essential” during COVID-19, private individuals, family funds, and pension funds plowed $2.6 billion into corporate cannabis, and multi-state operators posted record sales in the hundreds of millions. Earlier in September, the second cannabis exchange-traded fund (ETF) was announced which involves an investment portfolio of multi-state operators, REITs, and CBD companies. In contrast, Black and brown communities face mass incarceration for that same plant whereby African Americans are four times more likely nationally to be arrested for cannabis offenses than whites, while in states such as Kentucky and Montana, almost 10 times more likely, cited by a 2020 ACLU report.
These economic barriers to entry entrench the lack of representation in cannabis. For most entrepreneurs, the main obstacle to starting a cannabis business is the lack of access to traditional banking. It takes at least $300,000 to open a cannabis retail store, and up to millions of dollars for other cannabis enterprises, according to the 2019 Marijuana Business Factbook. Without traditional banking, most professionals finance their businesses through family wealth or personal contacts – 84% of U.S. cannabis companies are self-funded by founders, and 22% capture additional funding through a Family and Friends Round, cited by that same report. In this system, minority entrepreneurs are at a disadvantage. U.S. median household net worth ranges from $171,000 for white families to $17,600 for African Americans, $20,700 for Latinx, and $64,800 for “Other,” based on a 2016 Federal Reserve Board survey.
In addition to funding challenges, cannabis entrepreneurs must navigate onerous state and local regulations to obtain and maintain licensing. Some states have launched Social Equity Programs to help communities historically targeted by the criminalization of cannabis to now participate in the profits of legalization. However, even Illinois’s Social Equity Program, which is considered the gold standard, awarded only 21 out of its total 75 retail social equity licenses, leaving unclaimed 54 licenses that could have transformed the applicants’ economic circumstances. The 21 finalists were taken from a total pool of 1,667 applicants, which equates to only 1.3%. Low success rates stifle market entry and ensure that corporate, multi-state operators continue to saturate the cannabis space.
Beyond media proclamations, we must actualize an inclusive cannabis industry that reflects and celebrates the rich diversity of our community and provides equal opportunities to all professionals throughout the growth cycles of the market. We must operationalize sustainable businesses that produce unionized jobs and foster generational wealth. To do so, we must not only promote our own professional aspirations, but we must champion our friends’ and colleagues’ pathways into and up the cannabis industry.
While federal legalization remains the ultimate goal, local policies that would articulate a diverse, inclusive, sustainable cannabis industry must include explicitly legalized access to banking and finance, an overhaul of law enforcement and the criminal justice system, and social equity programs that encourage market activity. Until then, we must collectivize our professional resources and knowledge to build a true business community that empowers each of us to achieve our cannabis ambitions.
Rebecca Lee Katz is an attorney at an international law firm and President of Pakaloh LLC, the free business resource for an inclusive cannabis, CBD, and hemp industry. Pakaloh offers three types of membership which are all free, and members may select as many as they choose. Membership is available to 1) “Individuals”, including new and established entrepreneurs and professionals, 2) “Providers of Products”, or plant-touching businesses, and 3) “Providers of Services”, including ancillary services.
A WOC-owned company, Pakaloh provides its members with a comprehensive suite of services, starting with free information and discounts at financial institutions like banks, lenders, and payment processors that work in cannabis. Pakaloh also features free Business Tutorials that cover a range of cannabis topics from accounting to agriculture. These are informative, introductory online videos submitted by members that allow them to reach an audience of potential clients who may need to hire their services. Additionally, members may post and search for job opportunities.
Partner companies also offer discounts for members to use on individual and bulk orders. Members network on the site by accessing directories and sending messages directly to each other. Lastly, Pakaloh curates information on professional and activist organizations and events. Pakaloh is pledged to every community, and comes from pakalolo, an embrace of generations of the founder’s family in Hawai’i. Pakaloh holds true that no matter your roots, each of us aspires toward something greater than ourselves, be it our family, our nation, our cannabis movement.
It’s Time to Spark the Vote! Calling On All Retailers to Mobilize Customers for the 2020 Election
Despite having been marginalized and underrepresented in the political process for as long as prohibition has been policy, cannabis consumers are quickly emerging as an incredibly diverse and effective voting bloc in American politics. The impact of the cannabis consumer vote on state and local elections is palpable in these unprecedented times. As a beneficiary of this constituency base, we as an industry need to appreciate not just what elections have done to enable our businesses to exist today, but, critically how by lifting the voices of our patrons we are ensuring our own sustainability tomorrow. In fact, the backbone of the cannabis industry is our consumer base. Without consumers, there would be no local reform and, in most cases, no legal state market.
Today, we have hundreds of licensed retail stores across the country, and our industry is finally in a place where we can mobilize our customers nationally for the 2020 election. As retailers, it is now absolutely essential that we ensure cannabis consumers are effectively engaged, which is why we, at Berkeley Patients Group, are proud to join the Spark the Vote Retail Partnership Program. We are calling on every retailer out there to join us.
Spark The Vote‘s Retail Partnership Program is a COVID-safe, cannabis consumer voter registration and mobilization drive. The goal is to leverage the growing number of public-facing cannabis retail networks, and allied businesses to promote the effort through in-store and online customer engagement. The campaign is bringing together hundreds of socially responsible operators from across the country that are committed to supporting public participation in the electoral process. This is an excellent opportunity for our industry to stand out as good corporate citizens by lifting the voices of the communities we serve, and by empowering our employees to support positive social change.
There is no fee to participate as an official retail partner, and his campaign was designed specifically to minimize any staff or operational disruption. The only requirement is to promote get out the vote by displaying a QR code sign (graphic is provided) in a high-traffic, high-visibility location in the store, and highlight content on social media when necessary (language templates are provided). The sign acts as a COVID-safe, contactless voter registration station where a customer can use their phone to scan the code and quickly find out about their registration status, early voting, and other resources on how to participate and promote the democratic process.
In the words of Thomas Jefferson, “We do not have government by the majority. We have government by the majority who participate.”
For more information on Spark the Vote, how your organization can participate in the Retailer Partnership Program, or other partnership opportunities, please contact ben@sparkthevote.org or go to www.sparkthevote.org.
[Sabrina Fendrick, Chief Public Affairs Officer, Berkeley Patients Group; Spark the Vote Advisory Board Member, contributed to this post.]
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Bryan Passman is a father, a husband, a trailblazer, and Co-founder and CEO of 
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