Video: NCIA Today – Federal Policy Update, Andrew Yang, And More!

Host Bethany Moore, NCIA’s Deputy Director of Communications and host of NCIA’s weekly podcast ‘NCIA’s Cannabis Industry Voice‘ brings you an in-depth look at what is happening across the country in federal cannabis policy reform and with NCIA.


From the top, Bethany breaks the big news that former presidential candidate Andrew Yang will be keynoting the Cannabis Business Summit this year. She continues and discusses the newly-launched NCIA Facebook Live series (and podcast) Cannabis Diversity Report.

We check in with NCIA Deputy Director of Government Relations Michelle Rutter Friberg, to hear some of the recent highlights from the nation’s capital about cannabis policy reform, cannabis, COVID-19, and more. Our resident political expert breaks down the ways that NCIA is looking to help our members improve their engagement and reach in the legislative process.

Membership Manager and DEI Coordinator Tahir Johnson joins the show to discuss the recent move by NCIA to endorse the Cannaclusive Accountability list, asking all cannabis companies to adhere to promises made in the wake of racial injustices and actively strive to build a more equitable, inclusive industry.

A Third Round of SAFE Banking, HEROES 2.0 Unveiled

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

Photo By CannabisCamera.com

It may seem like a while since you got an update on the SAFE Banking Act, but I have some exciting news to share with you! 

Yesterday, House Democrats unveiled “HEROES 2.0” which is their latest COVID-19 relief package. If you’ll recall, back in May, the House also passed the initial HEROES Act, which included the text of H.R. 1595, the SAFE Banking Act. 

Since HEROES passed the House in May, NCIA has been hard at work (from home!) talking to House and Senate leadership, as well as other key Senate offices about the need to pass this legislation and solve the cannabis banking conundrum. Unfortunately, those talks have been stalled for months as congressional leadership and White House officials struggle to make a deal. 

Eager to return home in October with a victory to show, many moderates on both sides of the aisle have been stressing the importance of passing another relief package. As the language was just unveiled late yesterday evening, it’s still unclear how the Senate will react to the bill, and of course, the bill still has to clear the House of Representatives.

You might remember that just days before the first HEROES Act was passed in May, NCIA led ten cannabis advocacy and industry organizations in sending a letter to congressional leadership urging lawmakers to include SAFE in the next pandemic relief package. If the new HEROES 2.0 passes the House, it will mark the third time that the full body has approved the SAFE Banking language.

The language included in both packages is identical to the House-approved version of the bill and would make it easier for financial institutions to work with cannabis businesses that are in compliance with state law, as well as help address serious public health and safety concerns caused by operating in predominantly cash-only environments. The bill would also assist with the financial and practical hardships that are facing cannabis entrepreneurs of color as a result of a lack of access to capital from traditional lending institutions.

Make sure you stay engaged and continue to tell your lawmakers that you are a cannabis voter and that these issues are important to you! Contact your Senators today and ask that they support SAFE Banking as a necessary piece of legislation that can help the tens of thousands of cannabis workers stay healthy by allowing our industry access to legitimate banking and end our cash-only operations. 

Want to make sure you hear the latest about what’s happening in cannabis policy? Follow NCIA on social media and be sure to share important information and resources as we release them with your networks, because we’re going to need all of us in this together! 

The most important thing anyone can do to make sure SAFE Banking and other important reforms are realized in Congress is to ensure that their cannabis business is a member of NCIA. If you are not yet a member, please support our work by joining today. If you already are a member, thank you for making our advocacy work possible.

Member Blog: Top 8 IT Concerns for the Cannabis Industry

by Sean Dawson, Director of IT Solutions at Office1 

Integrating and measuring innovation for cannabis businesses can be daunting, mostly because cannabis has been considered illegal for decades. Luckily for the cannabis industry, the laws prohibiting the use of marijuana and marijuana products are tumbling down, and windows of opportunities are opening for people to integrate information technology with their cannabis businesses. As in other industries, information technology is shaping the cannabis industry as a frontier of opportunities for professionals in many exciting ways.

Despite being stereotyped and demonized for close to a century, the marijuana industry is swiftly reconstructing itself, thanks to cutting-edge technology that’s ensuring inventions, innovations, and progress. IT remains the ultimate lever for changing how people view and relate to the cannabis industry. Over the last few years, IT revamped the cannabis industry and transformed how marijuana is grown, processed, distributed, purchased, branded, and consumed.

Despite the remarkable progress, there are a few IT concerns for the cannabis industry. Here are the top 8 IT concerns for the emerging cannabis industry: 

Automated Cultivation 

Marijuana grow-boxes with fully automated grow technology for high-quality yields are a potential game-changer for the cannabis industry. A perfect example is a home-grow technology that allows people to discreetly plant a seedling or two in every corner of their houses. Every bit of the home-grow technology is highly guided and fully automated. This gives growers a deep personal satisfaction of growing their own marijuana without having to go through the taxing learning curve that other farmers have to endure to get the best quality yields. With this technology, you don’t even need an outdoor garden. 

On a larger scale, there are tech-driven innovations in seed genetics and breeding as crucial aspects of cannabis cultivation. This technology modifies the DNA of cannabis to develop a cultivar with rich taste and more resistant to pests, diseases, and harsh elements of weather. 

On the applications frontier, cannabis farmers now have access to customizable apps that allow them to configure cannabis cultivation to their geographical locations, soil texture, climate, and desired outcomes, among other considerations. 

 Automated cultivation is a growing concern for the cannabis industry as IT companies are striving to improve the cultivation technology even further, and growers are looking to leverage the best technology to gain more control over the quality and quantity of their yields.

Access Control

Cannabis dispensaries face the need to ramp up security within their premises. These dispensaries mostly deal with large cash transactions, which expose them to crime. These businesses are vulnerable to burglary, forgery, and robbery, necessitating advanced security options.

The need for improved security has led these dispensaries to incorporate stringent security options that effectively prevent malicious activity. For instance, to protect their crucial product, processing plants and growers utilize remote and cloud-based access control to the facilities.

Cannabis dispensaries normally take advantage of the flexibility that comes with current security systems to ensure that only authorized persons can access various areas within their facilities. To enhance security and access, these systems combine various security applications within one package, making them robust and efficient. 

For instance, an access control system that grants keyless entry also combines with surveillance cameras, alarms, and the check-in systems to store a proper record of all personnel who visit specific areas within their premises. This ensures a safe work environment where the company maintains trust with their staff while simultaneously reducing liability. Remote access control also triggers rapid growth since it facilitates the management of many branches from a single point.

Automated Vending and Online Recommendation

With advances in computing and robotics, various companies have been experimenting with non-human point of sale vending technologies. The cannabis industry has not been left behind. Artificial intelligence has allowed companies to aggregate HIPAA compliant data thus allowing for the creation of platforms where doctors and patients to better predict treatment outcomes as well as managing analytic data points from seed to consumption. Enter, opportunity. Companies have now been utilizing this to innovate the way cannabis is being purchased. Through the creation of search engines designed off the AI data aggregation, consumers are now able to find the best available strains for their desired use case in both a medical and recreational use case. 

Such technologies revolutionize the supply and delivery of the product as they help users make informed decisions regarding consumption methods and available strains, and therefore pivotal IT concerns for the cannabis industry.

Artificial Intelligence

Artificial intelligence (AI) has significantly transformed the way every industry does business, and the cannabis industry is not lagging far behind on this. The grade and strain of cannabis produced majorly depend on the environment in which it was grown. Artificial intelligence helps growers to enhance the plants’ genetic makeup and CBD/THC concentration to produce popular strains. 

AI also helps in optimizing the supply chain, ensuring efficient and fast delivery of marijuana products. Companies are diligently exploring ways in which AI can help improve how quickly and efficiently the product can be moved, from the growers to the processors and, finally, the consumer. 

For example, a California-based startup, Eaze, collects consumer data relating to consumption and delivery. The data is then processed, analyzed, and leveraged to help dispensaries keep track of demand and update their stock.

Other companies use artificial intelligence to forecast price changes, fluctuations in product supply, and to analyze trends within the cannabis Industry. 

AI is, therefore, a critical concern for the cannabis Industry.

Retail, eCommerce, and Delivery

Retail, too, has benefited from advances in delivery technology. Today, you can order a product or service with the click of a button, pay for it remotely, and have it delivered at your doorstep. The cannabis industry is already in on these advances. In states where marijuana consumption is legal, there are apps you can use to order a marijuana product and expect a home delivery in minutes. 

Marijuana dispensaries have also turned to technology to help educate the public on cannabis production and consumption. For instance, some dispensaries are adopting the use of augmented reality to guide consumers through the available strains and their effects on the human body. There are also tons of education programs that cover everything from how cannabis functions in the body, growing options, and the best strains for different types of consumers.

Customized Consumption

Technology has revolutionized how we consume the product. Unlike the previous years, when smoking was the most popular means of consumption, modern consumers have a wide range of options. These include skin patches, e-cigs, and dosed inhalers. These technologies have disrupted the cannabis industry, and are paving the way for even safer options.

No doubt, modern technology has led to the invention and discovery of safe practices in the consumption of marijuana. For instance, it is known that different consumers react differently to various methods of marijuana delivery. Today, it is not uncommon for a doctor to take a swab of saliva to determine the best strain and delivery method for a particular user.

Electricity Storage and Consumption Monitoring

Marijuana growers attest that one of the highest costs of marijuana production arises from the use of electricity. The use of LED lights and climate control are responsible for these power costs. One way to reduce these costs involves the use of storage batteries. Growers can buy electricity during off-peak times when power is cheaper, store it batteries and use it during peak times. This also calls for the use of energy monitoring solutions to determine power consumption trends within the cannabis farms.

Seed-To-Sale Technology

With the growth of the marijuana industry, producers and growers seek ways to improve efficiency in the cannabis production process, following the laid-out regulations and maximizing profit. Seed-to-sale technologies equip producers with all knowledge regarding their product supply chain. This way, marijuana growers function the same way as any legitimate pharmaceutical or distribution chain.

Seed-to-sale software allows for vertical integration, which means the grower can track the product through various phases of distribution (manufacturing, supply, and dispensing). Point of sale software can combine with the company accounting software to create a fully-fledged Enterprise Resource Planning system, making it easy to manage the product like any other business.

Seed-to-sale software also helps with the documentation of cannabis transactions, which helps with compliance management, inventory management, and analysis of consumption trends.

The Bottom Line with Cannabis and Technology 

With the increased decriminalization of cannabis comes unprecedented growth, which attracts investors. This growth has brought with it some industry shifts, especially in technology. This article has explored various IT concerns that have spurred growth in the marijuana industry. Legalization has also helped debunk myths formerly associated with the cannabis industry, which has encouraged IT startups to create solutions for the marijuana supply chain. This way, growers and suppliers can focus on developing high-end products, while technology helps with compliance, bookkeeping, and product improvement. 

The relationship between IT and marijuana growth will spur developments that propel it into a multi-billion-dollar industry in the coming decades.


Sean Dawson is the Director of IT Solutions at Office1. Office1’s mission is to innovate and progressively modernize the inefficient business landscape by providing a proactive, personalized, and eco-friendly office technology solution from planning to implementation and optimization. One solution from one company – Office1. Sean seeks to understand the heart of a challenge and then focuses on creating practical and timely solutions. He is an avid DIYer, gardener, and master house re-doer who loves spending his free time with his wife, four children, and six chickens. 

 

MORE Act House Vote Delayed, NCIA Submits Comments on FDA Guidance

by Morgan Fox, NCIA’s Director of Media Relations

In what House leaders have assured supporters is merely a temporary delay, lawmakers announced that the vote on the MORE Act which was originally scheduled for this week has been postponed until at least after the November election.

This legislation – which would remove cannabis from the Controlled Substances Act (CSA), expunge federal cannabis convictions, and establish programs to promote diversity in the cannabis industry and help communities that have been unfairly targeted by marijuana enforcement – was eagerly awaited as the first bill of its kind to get a floor vote in either chamber of Congress. No other de-scheduling bill, particularly one that contains robust restorative justice provisions, has ever gotten a vote since the original passage of the CSA in 1971, and advocates were confident that it would be approved in the House. In recent months, dozens of additional lawmakers have signed on to co-sponsor the bill, bringing the current total to 113.

Unfortunately, despite recent polling showing majority support for the MORE Act among Republican voters (and its job- and revenue-creating potential), some in the GOP attacked Democratic House leadership for moving forward with the bill before Congress had come to an agreement on a new pandemic relief package.

While this is certainly disappointing, House leadership has promised that the MORE Act will get a vote before the end of the year. That gives us at least another seven weeks to continue building support! In the meantime, attention is turning back to pandemic relief, where we are still pushing for the continued inclusion of SAFE Banking language in the final package if Congress can come to an agreement. There are also a number of cannabis-related provisions in this year’s appropriations bills, including removing barriers to research, protecting universities engaged in cannabis research, and preventing federal interference in state-legal medical and adult-use cannabis programs.

Please contact your members of Congress and urge them to support ALL these measures!

In other federal news…

With the help of our Policy Council, Hemp Committee, and Scientific Advisory Committee, NCIA submitted comments to the Food & Drug Administration this week providing recommendations on a number of issues related to how the agency will classify cannabis and cannabis-derived compounds in the future. You can read the full comments here. While the current comment period is now closed, the FDA has been expressing increased interest in input from a variety of stakeholders, suggesting that they are preparing for a change in policy in the relatively near future. It is very likely that there will be more opportunities to weigh in on their policies that could affect the cannabis industry for years to come.

The DEA and USDA both have open comment periods right now, so be on the lookout for more information about how you can help us influence cannabis and hemp policy at those agencies in the coming weeks!

 

Member Blog: Soil Is A Way Of Life, But What Is Living Soil?

by Lee Spivey, Marketing Manager at Good Earth Organics

Our preferred definition of living soil is the community of microbes working together breaking down organic matter which, in turn, provides valuable nutrition to the plants.

Soil microbes are essential for decomposing organic matter and recycling old plant material. Microorganisms are the unseen majority in soil and make up a huge part of soil’s genetic diversity. This means easier absorption of nutrients by plant roots, reduced need for watering, limited erosion, and improved aeration. A combination of organic materials such as compost, coco coir, peat moss, aged tree bark, manure, worm castings, and more can be used to make a base for living soil. Like all living things, soil needs water, and flows water along the path of least resistance to bring hydration and nutrients to plant roots. Water remains in the soil by storing itself in porous minerals for later use. 

Most beneficial life requires oxygen to survive and the complexity of living soil ensures air and moisture are continually cycled to keep roots oxygenated and allows plants to breathe. Organic soil additives must be broken down by microorganisms for plants to use them and three important microorganisms for living soil to function properly are bacteria, actinomycetes, and fungi. 

Bacteria are single-cell microorganisms that exist in most of the earth’s habitats and are the most dominant group in soil. Bacteria are present in all types of soil but their populations diminish with the increase of soil depth. Though bacteria can live under starvation and dehydration conditions they reproduce quickly when optimal water, food, and environmental conditions exist. Having a diverse bacterial population increases soil productivity and crop yields over time, while also assisting in decomposition. 

Actinomycetes are similar to bacteria and fungi, but do not have the chitin and cellulose found in the cell walls of fungi. The deeper your soil, the more actinomycetes will be found as their numbers increase in the presence of decomposing organic matter. Temperatures between 77°F and 86°F are ideal for actinomycetes growth and the most commonly found are thermoactinomyces and streptomyces which help prevent molds, mildew, and other soil pathogens. 

Fungi are second only to bacteria in their abundance in soil and the quality of the soil has a direct effect on their numbers. They are found in all soils and have filamentous mycelium, composed of individual hyphae. The quality and quantity of organic inputs present in soil have a direct effect on fungal numbers. Degradation of organic matter along with help in soil aggregation are the main functions of fungi in soil. Additionally, certain species of fungi produce substances similar to humics in soil which improve nutrient uptake in the root zone. Some fungi also aid in the mobilization of soil phosphorus and nitrogen — two of the three most important minerals — into plants. With cannabis, in particular, establishing roots becomes much less challenging when mycorrhizal fungi are introduced. “Myco – rhizal” literally means “fungus – root” and describes the mutually beneficial relationship between the plant root and fungus. These specialized fungi colonize plant roots and extend far into the soil to acquire resources beyond the “nutrient depletion zone” that plants can’t access alone. Mycorrhizal fungal filaments in the soil are truly living extensions of plant root systems and are more effective in nutrient and water absorption than the roots themselves as hyphae, or fungal roots, grow much faster and longer than the roots of the plant itself. This expands the surface area of the plant root allowing for increased access to nutrients, water, and oxygen.

There are many ingredients that work synergistically for optimum growth effects and less environmental impact. It is up to the individual which ingredients they prefer, but I recommend a blend of coco, peat, and compost to start. After accomplishing a drainable media you can begin working in the biologicals and bringin the soil to life.  

Growing with organic inputs and methods not only provides healthier plants because they are grown without toxic or persistent pesticides or fertilizers, it contributes to a healthier planet. Growing in organic living soil builds carbon with less waste while keeping toxic and persistent pesticides and fertilizers out of the soil, water systems, and our bodies. Many books have been written about living soil and this is just a small glimpse of its importance to businesses in the cannabis industry. For me, it breaks down to dollars and sense, as it does with many businesses that care about their bottom line. Living Soil allows for the grower to reuse soil for many years, saving them money on labor, fertilizer, and growing media. As growers, we are always working toward minimizing our carbon footprint and living soils empower growers to consistently achieve higher yields and organic purity.


Lee Spivey is the Marketing Manager for Good Earth Organics, Inc. a premium potting soil manufacturer in Oregon. As the driving voice behind the brand, it is his personal mission to make the world aware of the benefits of using organic living soil. After seven years with the company, he is well versed in the science behind the soil and the organic mission behind the brand.

Good Earth Organics, Inc. shares this passion for clean, living soil and has a vision to bring GEO products to growers everywhere that care for increased yields and organic purity.

We Must Hold Ourselves Accountable To Create A Fair Cannabis Industry

by Aaron Smith, NCIA’s CEO and Co-founder

As the nation began grappling with issues of systemic racism and inequality on a massive scale following the death of George Floyd and ensuing civil rights protests across the country, we saw an outpouring of support from members of the cannabis community. It was inspiring to see so many people standing up for justice and recognizing the disproportionate impact that prohibition has had on marginalized communities and Black people in particular.

Words, however, are not enough. Implicit in supporting positive change is the need to reflect on where we can do better – and be better – ourselves, and then taking action.

Since our initial public statement on this national reckoning early this summer, NCIA has started taking the first in what will be an ongoing series of steps to facilitate more diverse representation, participation, and access to opportunities in our industry. We instituted a Social Equity Scholarship Program to provide complimentary first-year membership and other benefits to licensees and applicants in state and local social equity programs and recently launched the #CatalystConversations webinar series to provide them with valuable information and amplify their voices. We have created a staff position to directly engage staff, membership, and allies to critically analyze and expand upon our progress. And, we are currently establishing an Opportunity Fund to help support and expand our scholarship program, and assist disenfranchised members and the organizations fighting for them. But we still have a long way to go.

As part of our efforts, we are also encouraging cannabis and ancillary businesses to commit to improving diversity, equity, and inclusion in the industry and to hold themselves to those commitments by participating in The Accountability List by Cannaclusive.

The Accountability List gives businesses and organizations the opportunity to show consumers, the industry, and policymakers what they are actively doing to promote fairness and inclusivity in cannabis and beyond. We encourage everyone in the cannabis space to stand up for justice, be honest about where they can improve, and commit to doing so in the most forthright, measurable, and transparent ways possible.

Photo By CannabisCamera.com

Ending cannabis prohibition and improving diversity in the industry is not going to eliminate systemic racism or fully repair all the death and destruction committed in the name of the war on drugs, but together we can make a real difference and help create a better future.

NCIA, our Board of Directors, and I stand firmly in support of people fighting to end racial injustice and ensure a fair cannabis industry with equitable opportunities for all. We hope you’ll stand with us.

 

Member Blog: Pivoting Your Cannabis Business During COVID-19

By Lindsey Griffith, Creative Content Specialist at ThrivePOP

Life has changed, and businesses are in panic mode. Consumer income suddenly becomes uncertain, and we begin to face our own economic vulnerability. Luckily for the cannabis industry, they were deemed as an “essential” business during the COVID-19 pandemic. And while this meant they were still excluded from federal funding, they were allowed to operate and service their consumers based upon differing state rules and regulations. 

While some cannabis companies’ first instinct may be to cut costs to marketing, there are several reasons why that should not be the case. Not only does marketing need to continue for your cannabis business to stay thriving, but it also needs to be amped up. Here we’ll discuss some reasons why you should keep marketing efforts rolling and just how you can pivot your tactics during a pandemic. 

Make The Most Of Your Time Online

On a normal day, the majority of the population is online. Now that many companies have transitioned their employees to work from home, or shut down altogether, even more people are spending time online. More people are on social media trying to interact with their clients and audience, and those that may have downtime are spending it on the web. COVID-19 brought sudden closing to in-person cannabis services across the globe and many businesses found themselves scrambling to get online. Social distancing practices suddenly transitioned daily activities to a completely digital life, so increasing your digital marketing efforts is a good way to continue to bring revenue to your business.

Now that your cannabis business may be limited to curbside, it is necessary to make your new purchasing process transparent online. Create a pickup process graphic for your website or pin directions to the top of your Facebook page. The easier you make it for your consumers to purchase your cannabinoids products during COVID-19, the better. Being online and consistently updating your content across the board is essential to keeping your cannabis business afloat.  

Focus On eCommerce

During times like these, people are stuck inside – so naturally, everyone wants to shop online. By transitioning your cannabis  sales to an online market, you will be able to maintain stability in uncertain times. eCommerce is a highly beneficial and successful way to keep your business active and making money during an economic crisis! It’s called retail therapy for a reason, right?

Luckily there are many resources to list your products online within the cannabis industry that expose you to a much larger audience than your website alone. Leafly maximizes your cannabis or CBD business presence through targeted advertising on its website. It’s also equipped with an easy to use online ordering system that allows customers to easily order in advance for pickup at your location. Another resource often used as an eCommerce platform within the industry is Weedmaps. Equipped with a mobile application, Weedmaps also makes it easy for consumers to easily search for cannabis brands and products near them. These are just a few of the resources available for you to legally list your products online. 

While these external resources are extremely beneficial, all of these should work in conjunction with your own cannabis domain. Having your own domain and website for your business is essential to succeeding and staying on top of Google search results during COVID-19. Using search engine optimization and regularly adding new content to your website are just some of the ways to continually rank for related cannabis search terms. Don’t expect immediate results, however, as it often takes several weeks for Google to analyze and formally rank your website changes. 

Build Your Email Marketing List

Now more than ever is a great time to build your client database. With the influx of people online and more time on their hands, it means that your offers can reach more people with the right marketing strategy. Setting up a marketing campaign with insider exclusives is an amazing way to keep people interested in your business and keep you at the forefront of their minds once things return to normal. 

This can be done in the form of an email newsletter signup, social media contest, or even lead generation quizzes. Just make sure you’re following current web and social media contest rules and regulations. When creating these campaigns, consider what is valuable to your consumer, as this won’t be the same across all cannabis businesses. Do your consumers want to be educated? Are they interested in the latest products or strains in store? Does the majority of your business come from recreation or medicinal sales? Use what you know about your target audience to carefully curate exclusive offers that are unique to your brand. 

Utilize All Of Social Media’s Tools

Adults are using social media up to 51% more than before the pandemic. Increasing your cannabis brand’s social media presence is key to staying in front of your audience during COVID-19. While you are currently not allowed to do any paid social media advertising (social media companies abide by federal law) there are many free tools available to grow your page organically. Making use of Instagram stories polls, questions, and countdowns are easy ways to give your audience a chance for them to interact with your page, therefore feeding into the algorithm. 

Confused as to how that works? It’s actually pretty simple. Every time someone interacts with your Instagram story it signals to the algorithm that the user is engaged with your content. The more they interact, the more Instagram deems your content important to that user. Therefore, bumping you right to the top of their news feed!

Using micro-influencers on social media is also a very cost-effective way to market your cannabis business on social media. Their small circle of dedicated followers is more likely to convert into a customer for your business than a larger influencer account. Just make sure the partnership aligns and makes sense for both parties involved. 

Reassessing Your Long-Term Strategy

How often do businesses get to press the reset button? If there is one silver lining during COVID-19, it’s the ability for businesses to adjust their marketing strategies. Now is the perfect time to develop a cannabis marketing plan that implements the standards of a “new” normal. When you do this you are able to reconsider your 4 P’s of marketing:

Product: Does my product serve my audience well during COVID-19?
Place: Is my product or service easily accessible to my audience during COVID-19?
Price: Can consumers afford my product or service during this economic crisis?
Promotion: Will consumers respond to marketing tactics as they had before COVID-19?

Marketing can’t just be turned on and suddenly leads and conversions pour in. It’s a long road with twists and turns that lead you to your destination. Dropping marketing efforts turns that car around immediately, reversing all efforts to obtain leads and increase sales. This may be a difficult and confusing time in the cannabis industry, but remaining strong in your marketing strategy will keep your business stable and active during and after a crisis.

Moving forward, consider how your marketing campaigns can now enter your consumer’s psyche. Keep your campaigns focused on your cannabis brand and don’t look to gouge worried consumers. Let’s be ethical about all this, while also remembering how marketing and staying in front of your audience is important, pandemic or not. Eventually, things will return to normal, so being smart and socially conscious and putting your best marketing foot forward will carry your business through!


Lindsey Griffith is the Creative Content Specialist at ThrivePOP, a West Michigan based Digital Marketing Agency. As a copywriter, Lindsey has experience in creating and implementing content across several digital platforms including podcasts, webinars, blogs, and social media profiles. During her cannabis career, she has worked with several cannabis manufacturers on search engine optimization through blogging to drive traffic to their website and assist in organic social strategies to gain new followers. Lindsey received her Bachelor’s Degree in Marketing from Grand Valley State University and her work has been published across several cannabis industry platforms.

Member Blog: GMPs – A Way Ahead for Hemp and CBD Firms

by Charlotte Peyton, Independent Consultant, EAS Consulting Group

The hemp industry is the marijuana industry’s half-sister. Both are variations of the plant cannabis sativa and both were made illegal in 1937 with the passing of The Marijuana Tax Act. Flash forward to the Agriculture Improvement Act of 2018 (known as the 2018 Farm Bill) that was signed into law by Congress on December 20, 2018. One year later, The USDA issued interim regulations that entitled Establishment of a Domestic Hemp Production Program for the cultivation of hemp on October 31, 2019. Both were huge steps forward for public access to hemp and hemp products. FDA legalized the growing of hemp in states with a state-mandated hemp program and removed hemp and its derivatives from Drug Enforcement Administration (DEA) Schedule I status and the U.S. Domestic Hemp Program aims to approve cultivation plans issued by states and Indian Tribes. 

Even so, then FDA Commissioner Scott Gottlieb issued a statement hours after the signing of the Farm Bill reiterating that “Congress explicitly preserved the agency’s current authority to regulate products containing cannabis or cannabis-derived compounds under the Federal Food, Drug, and Cosmetic Act (FD&C Act) and section 351 of the Public Health Service Act.” 

Still today, two years later and counting, FDA only permits CBD products submitted as an Investigational New Drug (IND) Application as a pharmaceutical and there remains only one such accepted CBD product, Epidiolex, manufactured by G.W. Pharma. All other CBD products are illegal for interstate shipment.

In-state production and sales may be a different story, provided that state has a mandated hemp program. In those cases, provided state law is followed, production and sales are legal and protected, but the minute products cross state lines, they become the jurisdiction of the federal government and, more specifically, the FDA. At least 47 states have enacted legislation to establish hemp production programs or allow for hemp cultivation research.

Section 10113 of The 2018 Farm Bill states that (c) Nothing in this subtitle shall affect or modify:

(1) the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 301 et seq.);

(2) section 351 of the Public Health Service Act (42 U.S.C. 262); or 

(3) the authority of the Commissioner of Food and Drugs and the Secretary of Health and Human Services- ‘‘(A) under- ‘‘(i) the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 301 et seq.); or ‘‘(ii) section 351 of the Public Health Service Act (42 U.S.C. 262); or ‘‘(B) to promulgate Federal regulations and guidelines that relate to the production of hemp under the Act described in subparagraph (A)(i) or the section described in subparagraph (A)(ii).” 

The mission of the FDA is “to ensure the safety, effectiveness, and security of human and veterinary drugs, vaccines and other biological products for human use, and medical devices.” As such, FDA categorizes every product for sale in the U.S. which is either ingested or applied to a human or animals into categories. That means hemp-derived CBD products will have to lawfully fit into one of those categories, however, while there has been positive movement towards the legal sale of hemp products on the USDA cultivation side, the FDA has authority over foods and dietary supplements, and the FDA’s position is that the addition of hemp/CBD to a food or dietary supplement is “violative.” In a Consumer Update statement revised on November 25, 2019, the FDA clearly stated that “it cannot conclude that CBD is generally recognized as safe (GRAS) among qualified experts for its use in human or animal food.”  

That being said, FDA has indicated it would be open to review of safety data for submission of a cannabinoid as Generally Recognized as Safe (GRAS) for Food or as a New Dietary Ingredient (NDI) in a supplement as the lack of any federal regulation runs the potential of putting people at risk. That has sent the industry scurrying to design and initiate studies in the hopes of demonstrating levels of safety that meet FDA’s satisfaction. 

In the meantime, those currently operating in states where hemp manufacturing is legal, must ensure Good Manufacturing Practices (GMPs) are adhered to closely. Should the FDA ever allow hemp products with CBD to be sold in the future, a manufacturer’s ability to demonstrate understanding and compliance with GMPs will be critical. Each FDA regulated industry has its own set of GMPs for the development and implementation of quality systems. 

  • 21 CFR 117, Current Good Manufacturing Practice, Hazard Analysis, and Risk-Based Preventative Controls for Human Food
  • 21 CFR 507, Current Good Manufacturing Practice, Hazard Analysis, and Risk-Based Preventative Controls for Food for Animals
  • 21 CFR 111, Current Good Manufacturing Practice in Manufacturing, Packaging, Labeling, or Holding Operations for Dietary Supplements
  • 21 CFR 210, Current Good Manufacturing Practice in Manufacturing, Processing, Packing, or Holding of Drugs; General
  • 21 CFR 211, Current Good Manufacturing Practice for Finished Pharmaceuticals
  • FDA Draft Guidance for Industry, Cosmetic Good Manufacturing Practice, June 2013

As the industry waits in the hopes that FDA will come on board with those states that have already legalized CBD’s use in products, it important to take the necessary steps to develop GMP protocols and quality systems as part of documented Standard Operating Procedures and record-keeping that those procedures are being followed, products are being tested and those tests are being validated. 

Ensure as you begin to develop or strengthen your GMP programs that you do so with a full understanding of the requirements set forth in 21 CFR 111. Whether these programs are designed in-house or with the assistance of an outside consulting firm, ensure your GMPs are specific to your manufacturing procedures as opposed to a stock one-size-fits-all program. A reputable consulting firm with demonstrable expertise in FDA regulations and in helping to develop these GMPs is a good place to start, one that listens to your questions and concerns before providing you their stock answer. A good consulting firm can walk you through your unique processes.   

Ensure your quality systems are robust and documented, including your demonstrations that your cGMPs are being followed. 


Charlotte Peyton supports EAS Consulting Group CBD and hemp clients as well as that of dietary supplements and pharmaceuticals. As an independent consultant, she assists with projects ranging from startup through manufacturing and support. Her expertise includes quality, regulatory and management, method development, and method validation for FDA regulated drug, dietary supplement, and bioanalytical samples. She has extensive experience in writing validation protocols, reports, and SOPs and assists with implementation of stability programs and report writing for finished products.

EAS Consulting Group, a member of the Certified family of companies, is a global leader in regulatory solutions for industries regulated by FDA, USDA, and other federal and state agencies. Our network of over 150 independent advisors and consultants enables EAS to provide comprehensive consulting, training, and auditing services, ensuring proactive regulatory compliance for food, dietary supplements, pharmaceuticals, medical devices, cosmetics, tobacco, hemp, and CBD. 

Looking Back On #10YearsOfNCIA: 2018-2019

Photo By CannabisCamera.com

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

Over the last several weeks, I’ve been taking a retrospective look at the progress NCIA has made in the ten years since its inception. This is our last installment, detailing 2018-2019, and brings us up to 2020 (the year that shall not be spoken of). While this timeline is by no means a comprehensive look at everything that’s happened in cannabis policy during those years, here are some highlights:

January 2018

On January 4, 2018, then-Attorney General Jeff Sessions declared in a one-page memo that he had rescinded the Cole Memo, a similar memo related to cannabis activity on tribal land, and two other older memos. Sessions directed U.S. Attorneys to instead “follow the well-established principles that govern all federal prosecutions,” which require federal prosecutors to “weigh all relevant considerations, including federal law enforcement priorities set by the Attorney General, the seriousness of the crime, the deterrent effect of criminal prosecution, and the cumulative impact of particular crimes on the community.” 

February 2018

This month was filled with the political fallout of the rescission of the Cole Memo. First, a letter was written by the U.S. Treasury Department’s assistant secretary for legislative affairs to Congress that said, “We are reviewing the [cannabis banking] guidance in light of the Attorney General’s announcement [to rescind the Cole Memo] and are consulting with law enforcement”. Then, following Sen. Gardner’s (R-CO) decision to block the Department of Justice’s nominees over the rescission of the Cole Memo in January, he released his holds on nominees for U.S. attorneys in a dozen federal districts and U.S. marshals in every district. Holds continue on the nominations of seven top Department of Justice nominees. 

March 2018

In March, Attorney General Sessions spoke at an event where he acknowledged that the Department of Justice cannot use its limited resources to enforce cannabis prohibition against everyone who violates federal marijuana laws. He said, “We’re not going to be able, even if we desired, to take over state enforcement of routine cases that might occur.”

April 2018

The Trump administration officially began accepting online comments about whether marijuana should be rescheduled under international agreements. That same month, U.S. Senate Majority Leader Mitch McConnell (R-KY) filed a hemp legalization bill. 

May 2018

The U.S. Small Business Administration (SBA) quietly issued a document saying that businesses that work with the marijuana industry aren’t eligible for federally backed loans. Fast forward to 2020, this document is largely what prohibited both direct and indirect marijuana businesses from receiving PPP money or federal assistance due to the COVID-19 pandemic.

June 2018

Senators Elizabeth Warren (D-MA) and Cory Gardner (R-CO), introduced the Strengthening the Tenth Amendment Through Entrusting States (STATES) Act. Shortly thereafter, President Trump was asked if he supports new Senate legislation to let states set their own marijuana laws without federal interference, to which he replied, “I really do. I support Senator Gardner. I know exactly what he’s doing. We’re looking at it. But I probably will end up supporting that, yes.” The STATES Act has never had a congressional hearing or moved in any way through the legislative process.

July 2018

In a slight change of tone, U.S. Attorney General Jeff Sessions said that “states have a right to set their own laws and will do so” but that “the American republic will not be better if there are marijuana sales on every street corner” and “we’ll [Department of Justice] enforce the federal law.”

August 2018

A group of the top financial regulatory officials from 13 states sent a letter urging congressional leaders to solve the marijuana industry’s banking access issues. The regulators wrote, “It is incumbent on Congress to resolve the conflict between state cannabis programs and federal statutes that effectively create unnecessary risk for banks seeking to operate in this space without the looming threat of civil actions, forfeiture of assets, reputational risk, and criminal penalties.”

September 2018

NCIA worked with Congressman Lou Correa (D-CA) to send a letter to the Department of Homeland Security Secretary Kirstjen Nielsen that urges the department to develop clear guidance concerning the entry into the United States of foreign nationals with authorized work visas who are associated with the cannabis industry.

October 2018

Well-known pollster Gallup found that sixty-six percent of Americans now support legalizing marijuana. Support has remained near that number to the present.

November 2018

This month, midterm elections were held, and a number of states voted on setting their own cannabis policies. Residents of Michigan and North Dakota both voted on adult-use measures, one passing and one failing, respectively. Additionally, Utah and Missouri both passed medical cannabis ballot initiatives. While the Senate remained in control of the GOP, the House of Representatives switched from a Republican majority to a Democratic majority.

December 2018

Congress passed the 2018 Farm Bill which included hemp legalization. The bill did not create a completely free system in which individuals or businesses can grow hemp whenever and wherever they want — there are numerous restrictions — and the programs are still being adjusted today. 

January 2019

The 116th Congress was sworn in and quickly filed a number of cannabis-related bills, including: 

H.R. 420: Regulate Marijuana Like Alcohol Act,
H.R. 493: Sensible Enforcement of Cannabis Act, and
H.R. 127: Compassionate Access, Research Expansion, and Respect States (CARERS) Act of 2019

February 2019

In February, the Subcommittee on Consumer Protection and Financial Institutions held its first-ever hearing on marijuana and financial services, entitled: Challenges and Solutions: Access to Banking Services for Cannabis-Related Businesses. Up for discussion was the Secure and Fair Enforcement (SAFE) Banking Act.

March 2019

Quickly following the subcommittee hearing, the House Financial Services Committee scheduled a full markup for the SAFE Banking Act. The bill passed out of committee with a bipartisan vote of 45-15. 

April 2019

During a House appropriations subcommittee hearing, several lawmakers asked Treasury Secretary Steven Mnuchin about what could be done to provide state-legal cannabis businesses with access to financial institutions. Mnuchin replied, “Let me just say, I hope this is something that this committee can on a bipartisan basis work with since there are people on both sides of the aisle that share these concerns. I will just say I don’t believe this is a failure of the regulators. I want to defend the regulators on this issue.”

May 2019

NCIA hosted our 9th Annual Cannabis Industry Lobby Days, bringing hundreds of professionals to Washington, D.C. Over the course of 48 hours, attendees met with nearly 300 congressional offices to share their stories and experiences and dropped off informational materials to 200 offices that we did not schedule meetings with. In addition to these meetings, we had two briefings, held a PAC fundraiser, and hosted our first-ever VIP Day for members of our Leadership Circle. 

June 2019

In June, the Senate Banking Committee held a hearing entitled “Challenged for Cannabis and Banking: Outside Perspectives.” NCIA was proud to have Sen. Jeff Merkley introduce for the record the testimonials of nearly 100 NCIA members during the hearing.

July 2019

The Subcommittee of the House Judiciary Committee held a hearing on ending cannabis prohibition in America. The hearing, entitled “Marijuana Laws in America: Racial Justice and the Need for Reform” will focus on the need to deschedule cannabis, the importance of equity, diversity, inclusivity in this burgeoning industry, and will also cover issues pertaining to cannabis and public health, law enforcement, and the failings of prohibition.

August 2019

When President Trump was asked at the end of August whether or not marijuana will be federally legalized during his administration, he said, “We’re going to see what’s going on. It’s a very big subject and right now we are allowing states to make that decision. A lot of states are making that decision, but we’re allowing states to make that decision.”

September 2019

For the first time in history, a standalone cannabis policy reform bill was brought before the House of Representatives for a vote and passed with an overwhelming bipartisan majority. The Secure and Fair Enforcement (SAFE) Banking Act of 2019, or H.R. 1595, was approved 321-103, including nearly half of voting Republicans, in a suspension vote.

October 2019

The U.S. Tax Court ruled this week that the tax code ban on business deductions by medical marijuana companies is constitutional. The case is Northern California Small Business Assistants Inc. v. Commissioner of Internal Revenue, docket number 26889-16.

November 2019

In a vote of 24-10, the House Judiciary Committee approved a bill that would effectively end marijuana prohibition. The Marijuana Opportunity Reinvestment and Expungement (MORE) Act of 2019, or H.R. 3884, was introduced by House Judiciary Committee Chairman Jerrold Nadler (D-NY) and has been moving through the legislative process steadily. The MORE Act is anticipated to be voted on by the full House of Representatives this month. 

December 2019

The Federal Reserve released guidance allowing banks to work with the hemp industry. Financial institutions are no longer required to file suspicious activity reports on customers operating a hemp business.

It’s been a wild ride to look back at the last 10 years of NCIA, and we are looking forward to serving you and your business for another 10 more! 

 

MORE Act Headed For Vote, SAFE Banking Still In Play

by Morgan Fox, NCIA’s Director of Media Relations

We asked, you answered, and your efforts are seeing results!

Over the past months, our Government Relations team in Washington, D.C. has been hard at work gathering support in Congress for the Marijuana Opportunity, Reinvestment, and Expungement (MORE) Act, and many of our members responded to the call to contact their lawmakers to urge them to support the legislation and bring it to a floor vote in the House. Well, our mutual work is paying off!

Last week, House Majority Whip James Clyburn (D-SC) announced that the MORE Act would be called for the vote! This was confirmed Monday as taking place during the week of September 21.

This legislation would remove cannabis from the Controlled Substances Act and do away with the continuing conflict between states with modern cannabis laws and the federal government. It would also expunge federal cannabis convictions, remove barriers to research, eliminate the current problems with the 280E tax code and lack of access to banking, promote more diverse participation in the cannabis industry, and establish funds to help undo the disparate harms caused by prohibition.

Make no mistake: this vote will be historic. This will be the first time that a bill to end cannabis prohibition has come up for a full vote in either chamber of Congress, and the results of the vote could determine the path of cannabis policy reform efforts for years to come.

This means we have just three weeks to drum up as much support as possible and show our elected officials where the vast majority of Americans stand on cannabis.

If your representatives are not among the 87 current cosponsors of the MORE Act, please contact them and urge them to join in showing their support for this momentous and necessary bill.

CONTACT CONGRESS NOW

 

Meanwhile, our efforts to maintain momentum for cannabis banking reform have continued throughout the negotiations of the next pandemic relief bill. Despite a somewhat contentious public debate over the size and scope of the stimulus funds in general, hope is still alive for the SAFE Banking Act provision to be included in the final legislation if Congress can come to some agreements on the numerous other issues at stake.

What is not up for debate is that SAFE Banking is an absolutely necessary part of COVID-19 relief. This measure will improve public health and safety by enabling more social distancing and decreasing cannabis businesses’ reliance on cash transactions which can spread contagions and make them a target for crime. Most importantly, it will help thousands of small businesses – with hundreds of thousands of employees across the country – survive these difficult times while providing uninterrupted healthcare services. It doesn’t get more COVID-relevant than that.

While it is still uncertain when or how the House and Senate will arrive at a compromise for pandemic relief, we don’t have much time before the elections divert most of their attention.

Keep an eye out for updates on ways you can help get SAFE Banking passed this year.

We couldn’t do this work without the support and assistance of our valued members. If you are not yet a member, please support our work by joining today. If you already are a member, thank you for making our advocacy work possible.

 

Video: NCIA Today – August Recap, Diversity, Equity, & Inclusion Update, Election Predictions, and more!

Host Bethany Moore, NCIA’s Communications Manager and host of NCIA’s weekly Podcast ‘NCIA’s Cannabis Industry Voice‘ brings you an in-depth look at what is happening across the country in federal cannabis policy reform and with NCIA.

From the top, Bethany discusses the new NCIA #IndustryEssentials webinar series. Webinars that arenʻt just about getting some big-name talking heads on a Zoom call, but about getting the correct people with the most up-to-date information to help our members stay ahead of the curve. This new series provides insights you canʻt find anywhere else, from experts who will surprise and delight you with their in-depth knowledge on relevant industry topics.

We check in with NCIA Diversity, Equity, Inclusion Manager Tahir Johnson to hear some of the recent highlights from his new show “The Cannabis Diversity Report.” Launched alongside the NCIA Social Equity Scholarship program, this weekly conversation takes an in-depth look at navigating, regulating, and growing the cannabis industry as a minority operator.

Director of Public Policy Andrew Kline joins Bethany on NCIA Today to discuss the nomination of Kamala Harris as the Democrats’ vice-presidential choice. A former Biden staffer and advisor, Kline discusses the minute differences he sees in the nominees’ cannabis policy and his expectation that Senator Harris can help Vice President Biden’s views evolve.

2020 isn’t completely canceled, as we begin registration for this November’s #CannaBizSummit CYBER, register today!

Webinar Recording: NCIA Committee Insights – What’s Going On With Social Equity In Illinois?

In case you missed it, watch the recording of this webinar from Wednesday, July 15, 2020.

NCIA’s #IndustryEssentials webinars are our weekly educational series featuring a variety of programs allowing us to provide you timely, engaging and essential education when & where you need it most. The NCIA Committee Insights series showcases content produced in partnership with one of our 15 member-led committees.

? What has taken Illinois so long to announce its first round of Social Equity license winners?
? When Illinois legalized Adult Use on January 1st of this year, it announced itself as a national leader in the fight for Social Equity.
? Is it making the impact it set out to in communities Disproportionately Impacted by the War on Drugs?

Find out directly from stakeholders in Illinois how the program has or hasn’t been working. How will the failings and successes in Illinois thus far impact other Social Equity programs around the nation?

Members of NCIA’s Diversity, Equity, and Inclusion Committee and Special Guests from the Chicago Community spoke on the subject, including:

⭐️ Tahir Johnson, Business Development Manager, National Cannabis Industry Association (Moderator)
⭐️ Christine de la Rosa, CEO & National Co-Founder, The People’s Dispensary
⭐️ Mike Lomuto, Co-Founder, Boost
⭐️ Mark Slaugh, Founder, iComply
⭐️ Rev. Anibal Vega, Social Equity Partner, The People Dispensary Chicago
⭐️ Ron Holmes, Co-Founder, Majority-Minority Group
⭐️ Kay Villamin, Co-founder & Creative Marketing Director, Hush Chicago
⭐️ Michael Malcolm, Founder & Cannabis Consultant, WTF Media; Social Equity Applicant – Chicago

Together We Can – Working To Achieve Legislative Victories  

by Madeline Grant, NCIA’s Government Relations Manager

Can you believe we are already coming to the end of August? 2020 has certainly not been what we were expecting – but we will persevere together. At NCIA, we want you to know we are here for you through these unstable times and now more than ever we will stand as a united cannabis community. As members of NCIA, we appreciate your dedication and contribution to continue the good fight to reach legislative victories at the state and federal levels. With your dedication to NCIA and our dedication to you, we can continue to achieve success through education and advocacy. 

As the Government Relations Manager, I want you to know we are still working continuously in D.C., with a unified message, to achieve legislative victories. Next month, the House of Representatives may vote to make cannabis legal and start repairing the harms caused by decades of failed prohibition policies. As the legislative session draws to a close and what is sure to be one of the most pivotal elections in history nears, there is a renewed effort in Congress to pass meaningful criminal justice reform before the end of the year. And this includes the Marijuana Opportunity, Reinvestment, and Expungement (MORE) Act

The MORE Act was introduced in the House last year by Rep. Jerry Nadler (D-NY) and already made history when it became the first legislative bill to be approved by the congressional committee (House Judiciary) in November.

This legislation would remove cannabis from the Controlled Substances Act, effectively decriminalizing it at the federal level and eliminating the ongoing conflict with effective regulated state cannabis markets. It would also expunge federal cannabis convictions, remove barriers to research, eliminate the current problems with the 280E tax code and lack of access to banking, promote more diverse participation in the cannabis industry, and establish funds to help undo the harms that have been disproportionately inflicted on marginalized communities by the war on drugs.

Now, a growing chorus of lawmakers are calling for it to receive a floor vote in the House in September, and we need your help!

Please call your member of Congress TODAY and urge them to support the MORE Act and help bring it to a vote this year. When you call your representative’s office explain to them how important the MORE Act is to you and your business. The staffer that answers the phone is there to pass along the message to YOUR representative so the more calls they get the better. 

NCIA Lobby Day, May 2017. Photo by Ben Droz

On another note, I’d love the opportunity to chat with you over the phone or zoom to discuss the challenges you are facing in the cannabis community. As we continue to meet with Hill offices virtually, it is important to relay your stories about the difficulties you face within the cannabis industry. Real-life examples help paint the picture of the reality our cannabis businesses face every single day. This is imperative to illustrate just how necessary legislative victories, like the MORE Act, are to us. So, if you have the time please send me an email to Madeline@TheCannabisIndustry.org and I will schedule a time for us. 

As we draw closer to the end of this legislative session, the NCIA team will continue to work hard to reach legislative victories. We are nearing the 10th anniversary of NCIA and have come a long way together, from legislative victories in appropriations to the SAFE Banking Act passing the House, and we will continue to reach more legislative success in the halls of Congress. We must not lose hope during these unstable times but propel forward more unified than ever before.  

 

 

Member Blog: Operational Excellence In Cannabis

by Dr. Jon Thompson, Ph.D., CEO of extraktLAB

What is Operational Excellence?

Operational Excellence is basically having a goal that looks far ahead to the future of what ultimate business plans should be while analyzing every aspect of the business itself. This is accomplished by using evidence-based results to achieve a higher level of function than any other company in the same market. Whether issues are found in lean supply chain, revenue control, processes that may be unnecessary or serve a lower function than what is needed, or other areas in which money is getting tied up, Operational Excellence is a management philosophy based on a constant method of refinement. It is taking all of the thinking, ethics, and ideology of Lean Thinking, Six Sigma, and Scientific Management, and putting them into one category to cover a broad range of improvements. In this article, we will delve into how Operational Excellence ties in the cannabis and hemp industry.

Why Is Operational Excellence Important?

A company that is employing Operational Excellence will outperform its competitors in many ways, even if they are using a similar business strategy. How resources are being used will often decide which company is going to perform better. The superior company will have much lower operational risks because it will have done a proper and thorough analysis. It will have a lower operating cost because of constant improvements to enhance the information and material flow. And, it will likely have more revenue because of efforts made in the interest of saving money, which will create a higher value for customers and the business itself. Companies utilizing Operational Excellence develop the right culture for their industry while managing their processes and business in a systematic, analytical fashion.

Applications In The Industry

There are several ways this can be applied to the cannabis industry. We could speak at length about any of these topics, so we will try to stick to the most important points to watch for and ways to operate. This is much more of a state of mind than a list of ways to improve the overall success of a company. And the whole team should have this same method of thinking when operating in their respective departments because this is something that should cover the business as a whole. 

Lean Supply Chain

Controlling how much inventory you have on hand is important, not only fulfill orders but keep operations moving forward while minimizing waste. As an example, farmers often want to be paid for their material immediately. If they want to sell their whole yield, you would then have to store their entire crop in your warehouse. At the end of the day, this costs money and could possibly interfere with production while trying to process the material. A better solution would be to take the entire 500,000 lb processing deal but split it up into ten 50,000 lb shipments, or five 100,000 lb shipments. In this model, the farmer is paid sooner and you do not have an oversupply of product cluttering the warehouse and workspace. 

Value Stream

A value stream map is a visual tool that displays all critical steps in a specific process and easily quantifies the time and volume taken at each stage. Value stream maps show the flow of both materials and information as they progress through the process. Within that value stream is the value-added processes and non-value added processes. For example, all machines need maintenance in one form or another; however, particular circumstances will determine whether or not maintenance on a given machine will be considered value-added, or non-value-added processes. If the maintenance required is a routine scheduled maintenance, then it is considered to be a value-added process. If it breaks down because the scheduled maintenance was subpar, however, that would likely deem the maintenance a non-value process. As a rule, it is beneficial to eliminate all non-value processes in your value stream. 

The Invisible Killer

You can grow yourself out of business easily. In fact, this almost happened to our company. Because we were unable to wait 24 weeks for materials to arrive before we started manufacturing, we were pre-ordering to build up our inventory. As more orders start coming in, it is still necessary to have cash available to continue manufacturing – otherwise, it is not feasible to have a surplus of inventory. Bankers told us that we might have strangled ourselves with inventory. Fortunately for us, that did not happen, and since we have been using Operational Excellence to enhance the business, growth has never been greater. 

As a business owner you should always have an insight into how the operations are running. This takes it a step further by recording and analyzing the information of your cannabis operation and making decisions that are going to have the most benefit for continuous growth. Operational Excellence means you should be using a Business Execution System that efficiently and harmoniously incorporates the following components: Process Excellence, Performance Management, and Strategy Deployment. 


Dr. Jon Thompson, Ph.D., Chief Executive Officer of extraktLAB is a separations scientist, entrepreneur, and inventor. As a scientist, he has a strong technical background and industry experience in analytical instrumentation, in-vitro diagnostics, biotech, mining, and homeland security markets. During his cannabis industry career, Dr. Thompson has earned a strong track record of winning and implementing medical cannabis licenses in well-regulated, medically-modeled states. Dr. Thompson has assisted numerous companies to attain their goals in cannabis and hemp manufacturing, as well as market development, strategic marketing, and worldwide business-to-business alliance formation (including international markets). He received a Bachelor of Science degree in Biochemistry, Master of Science degree in Chemistry and a Doctor of Chemistry degree–all from the University of Minnesota.

Looking Back On #10YearsOfNCIA: 2016-2017

Photo By CannabisCamera.com

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

Over the last month, I’ve been taking a retrospective look at the progress NCIA has made in the ten years since its inception. While it’s been fun to look back at those early years, this week I’m excited to look at a time when cannabis policy was getting really active: 2016-2017! While this timeline is by no means a comprehensive look at everything that’s happened in cannabis policy during those years, here are some highlights:

January 2016

District judge dismisses lawsuit against the Fed, filed by the Fourth Corner Credit Union, says Congress must fix the cannabis banking problem. The same month, President Obama announces that cannabis reform is not on his agenda in 2016.

March 2016

The Supreme Court dismisses Kansas’ challenge to Colorado marijuana laws. The 6-2 vote meant the nation’s highest court would not rule on the interstate dispute, and Colorado’s legal cannabis market remains safe. “Since Colorado voters overwhelmingly passed legal recreational marijuana in 2012, we have worked diligently to put in place a regulatory framework — the first in the world — that allows this new industry to operate while protecting public health and safety,” then- Gov. John Hickenlooper (D) said following the decision. “With today’s Supreme Court ruling, the work we’ve completed so far remains intact.”

An AP poll shows that 61% of Americans support legalizing cannabis. The most recent Gallup poll on the issue, published in October 2019, shows that approval number has risen to 66%.

April 2016

U.S. Senate Caucus on International Narcotics Control holds a hearing titled “Is the Department of Justice Adequately Protecting the Public from the Impact of State Recreational Marijuana Legalization?” 

May 2016

NCIA holds its 6th Annual Cannabis Industry Lobby Day in D.C., garnering over 150 attendees and participating in more than 200 scheduled meetings on Capitol Hill. That same month, the Tax Foundation reports a legal marijuana industry could mean up to $28 billion in federal, state, and local tax revenues.

June 2016

NCIA hosts our 3rd Annual Cannabis Business Summit in Oakland with 3,000+ attendees. That same month, the U.S. Senate Appropriations committee narrowly approved a marijuana banking amendment. Ultimately, the amendment did not make it into law. The amendment has not passed this specific Committee since, though we continue to try! 

July 2016

Showing increased interest and momentum on this issue, the U.S. Senate Judiciary Committee holds a hearing on the potential benefits of medical marijuana. The same month, the Democratic Party included reclassifying cannabis in the party’s platform. 

August 2016

This was an exciting month because we got to really see our efforts at work in the real world. Four years ago this month, the Ninth Circuit Court of Appeals ruled that due to the Rohrabacher-Farr amendment, the Department of Justice cannot use funds to enforce federal law against state-legal medical cannabis businesses.

September 2016

U.S. Attorney General Loretta Lynch says that marijuana is not a gateway drug, but that same month, FBI data showed that there is one cannabis arrest every 49 seconds in the U.S. The majority of those individuals are Black and brown and are arrested four to eight times more than their white counterparts.

October 2016

Members of Congress and the campaigns to legalize cannabis in various forms enter the final push. That month, a report also showed that Colorado’s marijuana industry had a $2.39 billion financial impact and created more than 18,000 jobs in the state.

November 2016

Five states (Arizona, California, Maine, Massachusetts, and Nevada) voted on ballot initiatives to legalize, tax, and regulate marijuana for adult use. Four of those initiatives passed, and three of them passed by more than seven percentage points.

Four states (Arkansas, Florida, Montana, and North Dakota) voted on ballot initiatives to create or expand legal medical marijuana programs. All four of those initiatives passed, with an average victory of 26.3 percentage points.

Of course, November 2016 is also when Republicans took control of both chambers of Congress and candidate Trump became president-elect Trump. 

January 2017

NCIA establishes the Policy Council to serve as the industry’s “think tank” in D.C., developing and publishing policy papers to educate policymakers and other stakeholders on topics relevant to the cannabis industry. The same month, Sen. Jeff Sessions (R-AL) begins his confirmation hearing to become U.S. Attorney General. He is subsequently confirmed, bringing uncertainty to the cannabis space.

February 2017

White House press secretary Sean Spicer said that he expects states to see “greater enforcement” of the federal law against marijuana use, a move that would be at odds with a growing number of states’ decisions to legalize it. Spicer, taking questions from reporters at the daily briefing, differentiated between the administration’s positions on medical marijuana and recreational marijuana. Funnily enough, Spicer’s career lasted about as long as it takes me to smoke a joint. 

The nation’s first-ever Congressional Cannabis Caucus is formed by Reps. Rohrabacher (R-CA) and Blumenauer (D-OR) with help from friends Reps. Polis (D-CO) and Young (R-AK). In the 116th Congress, Rohrbacher and Polis left Congress and were replaced by Barbara Lee, a Democrat from California, and David Joyce, a Republican from Ohio, as co-chairs.

May 2017

NCIA’s D.C. team grew from two (myself and Mike) to three, with the addition of Maddy Grant, who was our Government Relations Coordinator at the time. Since then, Maddy has become one of my best friends and was even one of my bridesmaids! If you know Maddy, you know she’s the best and NCIA is lucky to have her!

NCIA held its 7th Annual Cannabis Industry Lobby Days in Washington, D.C., where 250 industry professionals coalesced on Capitol Hill to attend over 300 scheduled meetings. Following that, there was a substantial increase in the number of cosponsors on cannabis-related bills compared to the previous Congressional session. 

July 2017

The Senate Appropriations Committee voted on their equivalent of the Rohrabacher-Farr amendment, sponsored by the committee’s vice chairman, Patrick Leahy (D-VT). That amendment passed on a voice vote and was the first time ever that a cannabis-related amendment passed in such a manner. At the end of July, the Senate Appropriations Committee also adopted an amendment that would allow the Department of Veterans Affairs to recommend medical cannabis in states. That amendment passed by a vote of 24 to 7 – the most votes this measure has ever received in the Senate. The veterans’ measure did not end up becoming law.

September 2017

The House Rules Committee held a hearing to discuss amendments to the upcoming appropriations bill that will fund the federal government for the upcoming fiscal year and chose not to vote on the amendment that protects medical cannabis businesses, patients, and programs. Since the protections for medical cannabis businesses were included in the Senate’s version of the budget bill but are not included in the House’s versions, it came down to a conference committee to negotiate its inclusion, and ultimately, the provision remained in law.

December 2017

Senate Republicans passed their tax reform package into law. Sen. Cory Gardner (R-CO) introduced two amendments to the bill that targeted 280E, however, he withdrew both amendments before the final bill was voted on.

If you think reminiscing on all that was a lot, make sure you keep an eye on our blog and future issues of NCIA’s Cannabusiness Leader to learn more about 2018-2019 and the progress we’ve made more recently as we wrap up this series! 

 

Member Blog: Building A Medical Cannabis Dispensary During The COVID-19 Pandemic

by David Fettner, Managing Partner at Grow America Builders

In late January 2020, Grow America Builders started construction on a new medical cannabis dispensary in Elizabeth, New Jersey, just across the river from Manhattan. It was scheduled to be a 12-week project. And then COVID-19 happened.

Every construction project has its own challenges and problems, but we never had to complete a project under those conditions.

The coronavirus pandemic hit the area fast and furious. Cases doubled by the day, stay at home mandates were put into effect, and there we were, in the middle of construction of a dispensary with a strict state-imposed deadline.

Most cannabis companies are given a state-imposed deadline to complete their dispensary or risk losing the license. As the chaos surrounding the virus was intensifying, the state of New Jersey was silent on whether or not there would be a time extension. We had no choice but to push ahead.

Hurdles, Speed Bumps, and Roadblocks

The first hurdle we faced was abiding by the new regulations. The two primary directives were that all workers must wear masks, and all entrances had to have a washing station with hot water or hand sanitizer. Every construction contractor has masks, but the second part was more of a challenge. As everyone remembers, hand sanitizer was a rare commodity in those first few weeks of COVID-19. If you had a jug of hand sanitizer you may as well have had a jug of gold bullion. Our project manager used the first of many favors and begged our plumber to come out on a Sunday to plumb a temporary sink so that we’d be operational by Monday morning.

The next problem was getting workers to the job site. Immediately, there was confusion as to who was allowed to work and who wasn’t. Some cities allowed essential work to continue, but others shut everything down except for medical personnel. Our guys were getting pulled over by law enforcement, and told that unless they were working at a hospital they would have to turn back. It was very confusing; even though construction was allowed in Elizabeth, it might not have been allowed in a neighboring town.

We lost subcontractors left and right. We assured our guys that construction was allowed on our project, but they didn’t want to risk getting continually pulled over. And then there were those who understandably didn’t want to endanger their health. The situation forced us to make modifications on the fly. We plowed ahead, finding alternate contractors and paying extra just to get bodies to the job.

It was about a month out from our deadline when we hit the biggest speed bump. One of the more critical elements of the project was a wall of interior glass separating the reception area from the sales counter. We wouldn’t get the occupancy permit without it. As soon as we were ready for the glass wall, we were told that eight members of the installation crew were out with COVID-19. They had been working on another job at which they were exposed to a bricklayer who had the disease. Regardless, the glass wasn’t even ready because the shop had closed down.

In late March, as we were frantically dealing with the glass crisis, we received an email from the city that stated all construction was to immediately cease and the building department was closed indefinitely. Internally, at Grow America Builders, this was henceforth known as “The Email.”

We had no indication that this was coming, despite the fact we had just had an inspection. The inspector probably didn’t know himself. We had about three weeks of construction remaining and roughly three weeks until the deadline. This left us with no room for error. We couldn’t afford a stoppage. We were spinning our wheels; how could we convince the city to let us finish our project when they’d shut down all other construction? It wasn’t long before the state released a list of “essential businesses” that could remain open. We scoured that list until we found what we were looking for: “medicinal cannabis dispensary.”

Were We Essential?

In a recent article on Marketwatch.com, Randal Meyer, executive director of the Global Alliance for Cannabis Commerce, recognized this and said, “There is a good reason for cannabis [retailers] to be treated like pharmacies. The basis is medical.” In the same article, it was reported that California Gov. Gavin Newsom decided that dispensaries should be treated something like pharmacies. Every governor in a medically legal state followed suit.

As long-time advocates of cannabis, we were always on the side of “legalize it.” But since working in the cannabis industry, we’ve seen the cancer patients, the veterans suffering with PTSD and the epileptics who literally depend on cannabis on a daily basis. It wasn’t news to us that medicinal cannabis would be deemed essential. It was good to know that this now seemed to be the consensus.

We started making calls to the building department and arguing to anyone who would listen that if a medical cannabis dispensary is considered essential, then the construction of one should be as well. The sooner we could get the dispensary built; the sooner people could have access to their medicine.

Finish Line

About 48 hours later, we received verbal approval to continue working, and about a week after that the building department opened back up with limited hours. At this point we had a good routine established; we kept the electricians away from the plumbers, the plumbers away from the millworkers and the painters only worked nights and weekends. Glass was finally being fabricated and our final inspection was scheduled. We were ready.

On the morning of final inspections, our one item of concern was that the inspector wouldn’t be happy about walking around the glass installers who were still finishing up. The issue became moot because the inspector never showed up. He had fallen ill the night before our final inspection, and since he was apparently the only inspector who could pass us for occupancy, we had to wait until he could return to work.

Nobody knew when that would be. What we did know was that the state inspector was scheduled for the following day. This was new territory; we never had a state inspector come out for their inspection before receiving city inspections. To our relief, the state inspector still did their inspection and the dispensary received state approval prior to receiving occupancy from the city. About 10 days later, the building inspector came out and approved us for occupancy, and days later, the dispensary was open for business.

There were a million little things that we usually take for granted that were made that much more challenging under the shadow of COVID-19. It gives us great pride to know that we built that medical dispensary amidst the pandemic in the hardest-hit part of the country and that patients are finding it easier to gain relief in Elizabeth, NJ.


David Fettner is a managing partner of Grow America Builders, a national design-build construction company focused solely on the cannabis industry. Along with his partner, Mike Kaulentis, Grow America brings over twenty years of versatile construction experience, offering customers an end to end experience from concept through architecture, design and turnkey construction

 

Sponsored Blog: What A Cannabis Focused Insurance Agent Knows That You Should

Sponsored blog post By Manuel Cuaron, OG Cannabis Insurance

Our agency decided to enter the world of cannabis insurance in August of 2016. We made this decision partly because we saw the financial potential of the industry but mainly because we wanted to contribute our talents and services as insurance agents to a culture and industry we believed in. An industry we knew that could one day be seen on the same level as any “main street” business if given the opportunity. Our goal has always been to provide an executive level of professionalism to our clients and to provide the most up to date solutions in protecting their businesses. 

While most insurance companies continue to exclude cannabis risks in their offerings, we are proud to say the few insurance carriers who have stepped up to insure cannabis have done a great job of understanding the operations of licensees and their risk exposures. Although cannabis insurance products have improved, gaps in coverage and limited availability for certain risks is still an issue for our clients. 

As someone who is championing for each licensee to succeed, I thought I would share some insight in areas of risk cannabis businesses have in order to help protect their business.

Insurance Companies

Since 2016, we have seen two admitted insurance companies offer coverage for California cannabis risks with a third option being offered soon. Three standard workers comp carriers began placing coverage along with the various State Funds each state offers.

More insurance companies are offering commercial auto coverage to states where cannabis is now legal. For the more complicated areas of coverage like Directors & Officers Insurance and Employer Liability Insurance, the insurance industry is being cautious in extended commonplace coverage with premiums and terms being offered at rates much higher than typical policies by comparison. 

Policy Exclusions

This is the area of insurance that can get ugly really fast. 

An exclusion to a policy removes coverage from the insurance. Each cannabis approved insurance company has their own specific exclusions and no two policies are the same. When an insurance policy has a defined and specific exclusion within it the insurance company will have no duty to defend such claim. This means your company will be on the hook to investigate the claim, prepare and defend yourself in court and possibly settle financially.  

Here is a sample of some of the exclusions to be aware of: class action, cancer, redefined bodily injury, vape pens, health hazards, and criminal acts.

Employee vs Employer – (Employer Practices Liability Insurance) 

Managing employee workplace environments is a balance of people management and navigating law with employer responsibilities. Both areas even the most seasoned business person or company might find difficulty in doing. The reality is even with full-time HR management in place handling high turnover rates and the difficult job of firing and hiring HR cannot prevent employers from claims of employee misconduct. If a current or former employee claims discrimination or harassment, wage theft or other unlawful acts the company having coverage in place for these claims should be essential for cannabis operators.  

Product Liability

While most people in the cannabis industry would agree that consuming cannabis is safe, the potential for product liability claims are massive. With the limited clinical research on cannabis long term physical and mental use and the legal ability to consume it means claiming a cannabis product is dangerous or caused injury or illness has yet to be tested in court. Although we haven’t seen lawsuits many in the industry thought we would see as of yet, my feeling is this will be the next wave of problems for cannabis operators with class-action status and illness being at the forefront of claims. 

Delivery & Distribution Risks

High employee turnover and limited insurance options are driving up commercial auto insurance costs. Due to COVID-19 we have seen delivery operations grow rapidly and expand and with this the cost to cover more drivers are pushing down much-needed profits. While background checks are a best business practice at hiring, driving records checks should be done as well to verify any impact on premiums a new hire may have. 


OG Cannabis Insurance began offering cannabis insurance in 2016 and quickly has become a recognized industry leader. From the beginning, our agency’s focus has been on developing an in-depth understanding of cannabis insurance products as well as being up to date on state and local cannabis license compliance requirements. Since then, we have worked with local municipalities on the shortfalls of cannabis insurance and have worked with insurance carriers who were interested in insuring cannabis but needed to know more about cannabis risks.

We decided to bring our talents and services to cannabis because we believed for the industry to thrive it must have access to knowledgeable and credible professionals representing cannabis. It is our goal to provide the cannabis industry with the most trustworthy and knowledgeable staff. 

Manuel started in the insurance industry for an independent agency located in Chino CA in 1998 and was with that same agency until it sold in 2008. As his career grew, so did his knowledge of insurance products, coverage, exclusions, and terms. He began to sell Commercial Line’s policies including Workers Compensation, General Liability, and Property Insurance. His clients include Trucking Companies, Bail Bond Companies, Staffing Companies, and Contractors just to name a few industries.

When the agency he worked for sold, he started his own agency, So. Cal’s Best Insurance in 2008. Manuel has been married since 2008 and has 2 boys who keep him busy at home. He is an avid sports fan who loves boxing, the Dodgers and Lakers.

 

 

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Video: NCIA Today – July Retrospective, D.C. Update, Cannabis Caucus Cyber Series Returns, and more!

In NCIA’s monthly video series, NCIA Today, host Bethany Moore shares a retrospective on the month of July, plus what to expect from NCIA’s digital events this fall. We also check in with NCIA’s Director of Government Relations, Michael Correia, to hear more about NCIA’s efforts to advance the cannabis industry’s legislative goals in D.C. during the COVID-19 pandemic.

NCIA members can join us at our second Cannabis Caucus CYBER series in the month of September.

Dates for NCIA’s rescheduled 2020 conference schedule has been announced… for 2021.

Mark your calendar for the NEW dates for NCIA’s Cannabis Business Summit and Expo, Midwest Cannabis Business Conference, and 10th Annual Cannabis Industry Lobby Days.

Plus, we announce a brand new virtual educational event taking place October 21-22, 2020!

 

Committee Blog: Best Practices Guide – Allergen Labeling

By Brandon Dorsky, The Law Offices of Brandon Dorsky
Member of NCIA’s Packaging and Labeling Committee

Determining which edible to consume is an art all by itself. Making that choice when you suffer from food allergies often makes the decision all the more challenging.

Despite the continued federal illegality of cannabis, cannabis products are still obligated to abide by federal labeling requirements regarding the disclosure and identification of the presence of common allergens, including tree nuts (such as coconut and almonds), peanuts, fish, shellfish, dairy, soy, eggs, and gluten. Labels often do identify the presence of those ingredients and sometimes even the traces thereof. Although companies are seemingly committed to following federal requirements, there is still a continued absence of additional, more specific information that could help individuals with allergies make better-informed decisions when selecting their edibles.

A commitment to providing more information in labeling of common allergens not only helps consumers but also has the propensity to battle the stigma of cannabis as an underground and unregulated industry by embracing more advanced self-regulation and increased transparency. Additional information promotes transparency in the production and packaging processes, and provides valuable information to the discerning customer in addition to promoting better business practices. With roughly one in 20 adults allergic to peanuts or tree nuts, at least 5% of purchasers are directly impacted by the information related to the presence and management of nuts in a manufacturing facility.   

In the marketplace today, common label designations include “may contain traces of,” “produced in a facility that also processes” or “produced on equipment that also processes.” Rarely is more information provided. Even though broad strokes disclosures satisfy federal requirements and limit legal liability, they do not do much to inform consumers suffering from allergies who could eat something produced with care, but cannot safely or comfortably consume food products that may contain traces of. With anxiety and paranoia, a potential consequence of cannabis overconsumption, the availability of more information about the presence of allergens on a label could possibly cure or temper an unwarranted freakout. More detailed information could even help avoid emergency room visits and the related trauma and anxiety from experiencing allergic reactions or the vestiges of one. No one enjoys the associated trauma and paranoia of hives in their mouth or wheezing while under the influence of an edible because they ate something that may contain traces of and actually did contain traces of the allergen.

The “may contain traces of” designation is good for the edible manufacturer at discharging potential liability, but it does not do much for consumers that are actually allergic to the items beyond sending the signal that if they consume the product, there is a possibly a legally identifiable amount present within the edible that could potentially trigger a severe allergic reaction. The language provides little information as to why there may be traces of the allergen. For the affected consumer, the business practices used to segregate common allergens or otherwise avoid cross-contamination or contact is what is critical for determining the likelihood and magnitude of the risk of any potential contamination, and therefore the risk presented by the consumption of an edible. This language, while good for insulation from liability, is not informative as to how the traces may have occurred and has the potential to be misleading and deter purchasers that would not be deterred if the label were more accurate at disclosing where in the production chain a potential trace of contamination could have occurred.   

Manufacturers currently provide notice if there are “traces of,” or if equipment or a facility contains a common allergen, but they could go further. Four potentially more informative versions of “may contain traces of” or “made on the same equipment as other items that include…” or “made in the same facility as items that include” are:

Produced in a facility, but on separate equipment,

Produced on equipment, that processes INSERT ALLERGEN(S), but using best/reasonable business practices to segregate allergens in the production and storage process.

Produced on equipment, that processes INSERT ALLERGEN(S) where the facility produces products containing allergens on different days than products not containing INSERT ALLERGEN(S).

Produced in a facility that processes INSERT ALLERGEN(S) where the facility produces products containing allergens on different days than products not containing INSERT ALLERGEN(S).  All production machinery is cleaned between the productions of different types of edible products.

Cannabis edibles product manufacturers could lead the charge on providing more informative allergen disclosures by promoting the use of more descriptive labeling practices. While such a move may cost fractions of a penny in ink and packaging real estate, the goodwill it could buy is invaluable. The loyalty of the allergy afflicted consumer (and the purchasers who care for or care about them) should not be understated. If a little extra print turns one in 20 customers into a lifetime brand patron, it is probably worth the rub.


Brandon Dorsky helps clients navigate the constantly evolving global marketplace in a variety of industries, providing strategic, seasoned counsel to facilitate growth, mitigate risk and seize opportunity in the cannabis, fashion, music,  entertainment and media industries. Through a wealth of experience, contacts, enthusiasm, and commitment, clients receive carefully tailored legal and consulting services to accelerate their business’s success.

Member Blog: Drug Testing In Legal States – Corporate Policy vs. State Law

by Samantha Vanegas, VP of Operations, ath Power Consulting

Currently, 33 states have legalized medical marijuana, and 11 others have given the green light to marijuana’s recreational use; however, the federal government still classifies any use of marijuana as illegal. This disparity creates a rift when employers go to test new employees for drugs. 

Workplace drug testing began in the 1980s as part of former U.S. President Ronald Reagan’s “War on Drugs” campaign. At that time, employers wanted to ensure their workers were fit to do the job at hand. Since marijuana has become legalized in many states, employers in these states are unsure of new drug testing protocols; so are the states and legal systems themselves. 

The resulting situation is a Catch-22. 

Without testing, there would be more applicants for any given job and a larger pool of prospective workers. Therefore, employers would potentially get the strongest candidates. However, with testing, employers can assure they get drug-free employees who will be safe on the job. 

But if marijuana is legal in some places and not others, who gets to decide where to draw the line? 

Safety on the Job

Safety on any job is paramount, which requires workers who are alert and capable of completing the intricacies of the job. 

According to Business News Daily, “The problem for employers is that impairment, because of marijuana, is usually much more difficult to detect and test for than alcohol. Unlike alcohol, it is very difficult for employers to determine if a positive drug test for marijuana is the result of drug usage during work or on non-work hours, so it is logistically simpler to just have an outright ban.” 

Making the issue cut and dry is much easier on employers compared to making case-by-case decisions. 

Depending on the business, marijuana testing is essential. Because of inherent safety concerns, new employees in the transportation, construction, and manufacturing industries definitely need to be tested. People operating heavy machinery should clearly not be under the influence of marijuana. Truck drivers, bus drivers, and train operators still will be tested for marijuana under the U.S. Department of Transportation laws. 

Additionally, any companies that accept federal money or hold contracts with the federal government will have to maintain drug testing protocols. In other business sectors, the line is not clear, which calls the legality of testing into question.

Legality of Testing 

With the ever-changing state cannabis laws and the potential for cannabis to be legalized on the federal level, the nation is basically in a “trial and error” situation. Regardless, employers must keep current with these ever-changing circumstances to protect themselves and their employees.  

The medical nature of marijuana usage further complicates the matter. Currently, 33 states issue medical marijuana cards, which permits users to use marijuana to treat medical issues. Business News Daily says, “Several states have specific laws protecting medical cannabis patients from employment discrimination. Typically, employers can require drug testing before employment and at random times, so long as there is no discrimination against medical marijuana users [who] are legally allowed cannabis for medicinal reasons.”

Besides the debate over medical marijuana cards, employers are stymied about what to do regarding recreational use as it pertains to the workplace. Since testing results can return positive weeks after the person smokes, there is really no way to tell if someone is a habitual user or it was a one-time event.

The states are divided. Currently, about 20 states will not allow discrimination in the workplace. But there is only one state that has gone so far as to say that recreational use of marijuana use is acceptable: Maine. Other states are starting to follow suit. Nevada law ensures that there can be no adverse outcomes for positive tests. And New York City will soon get rid of pre-employment testing altogether. 

Other states are not so quick to change. For instance, workers in Illinois can still be disqualified as applicants or terminated as employees for a positive test. Currently, Illinois allows for the “good faith belief” that employees can consider workers under the influence if their speech or actions seem impaired.    

Unfortunately, even the court systems do not agree. In some recent cases, the judge has sided with state rights, and in others, the federal appeal was victorious.

Moving forward, employees and employers need to continue the “wait and see” approach until federal and state employment laws catch up to the legalization of cannabis. For now, employers must determine their comfort levels with recreational marijuana use as it pertains to safety in the workplace.


Samantha Vanegas retains a MBA from the University of Florida Warrington College of Business. She works with the leaders of small start-up and growth-stage companies and non-profit organizations who seek temporary leadership to support growth and transitions. Whether for project-based work or as an interim manager, she is fabulous at supporting individuals and teams who are passionate about their work and need help bringing order to all the moving parts. She addresses common issues such as: how to build effective organizational infrastructure and systems; and, how to create and implement a strategy that will carry your business forward. She is a problem-solver who is able to envision the sum of the parts during and through transitions. She has a strong background in sales, operations, HR and marketing which elevates her expertise in assisting organizations with compliance intelligence and also with user, customer and employee experience surveys and solutions.

ath Power Consulting is an all-in-one resource for multi-modality survey and mystery shop research, competitive intelligence, compliance auditing, market analyses, employee training, and strategic consulting. Since 1997, we have helped our clients improve customer retention, build brand loyalty and advocacy, deepen employee engagement, measure compliance, maximize performance, and increase profitability – distinguishing them from their competition and giving them a commanding edge in the marketplace.

House Approves Appropriations Amendment to Protect State-Legal Cannabis Markets

Provision would prevent federal interference in all legal cannabis programs, including adult use

After approving legislation to protect state cannabis programs in a voice vote on Thursday afternoon, the House of Representatives reiterated its support with a roll call vote of 254-163 hours later. The bipartisan amendment to the Commerce, Justice, and Science appropriations bill was introduced by Reps. Earl Blumenauer (D-OR), Barbara Lee (D-CA), Tom McClintock (R-CA), and Del. Eleanor Holmes Norton (D-DC).

The provision would prevent the federal government from using any funds to interfere with state medical or adult-use programs or target individuals and businesses that are in compliance with state cannabis laws. If passed, this spending restriction would remain in effect for the next fiscal year.

“Today’s House vote aligns with the overwhelming majority of Americans who oppose federal interference with the successful cannabis programs operating throughout the country,” said Aaron Smith, CEO of the National Cannabis Industry Association. “Now, it’s time for the Senate to do the right thing and ensure this sensible provision makes it into the final budget legislation so that states can continue to forge their own path on marijuana policy without federal intrusion.”

A recent poll by SurveyUSA showed that 76% of Americans think states should be able to enact their own marijuana laws without interference from the federal government, including more than two-thirds of Republicans. The annual Gallup poll on the subject from last year showed that nearly two-thirds of respondents support making cannabis legal for adults.

“Passage of this amendment would give state-legal and essential cannabis businesses some temporary peace of mind while Congress works to permanently end federal prohibition and repair the damage it has done to marginalized communities,” continued Smith. “It is clear that there is strong bipartisan support for cannabis policy reform and we will continue working with lawmakers to promote further legislation in this session.”

Last year, this amendment was passed by the House but did not end up in the final budget bill. Since 2014, Congress has approved appropriations language that prevents interference in only state medical cannabis programs, and has included that language in the original budget language for the last two years.

SAFE Banking Not Included In Newest COVID-19 Relief Package

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

Today, Senate Majority Leader Mitch McConnell (R-KY) and the GOP caucus unveiled the text of their long-awaited coronavirus relief package. The initial draft text of the bill did not include any cannabis provisions, namely, the SAFE Banking Act. 

If you’ll recall, back in May, the House of Representatives passed the HEROES Act, which included the text of H.R. 2215, the SAFE Banking Act. The language included in the House-passed HEROES Act would make it easier for financial institutions to work with cannabis businesses that are in compliance with state law, as well as help address serious public health and safety concerns caused by operating in predominantly cash-only environments. After the House passed the bill, it remained in the Senate while the GOP-controlled chamber came up with their own version. 

But, a lot can change in a few months. Since HEROES passed the House in May, NCIA has been hard at work (from home!) talking to House and Senate leadership, as well as other key Senate offices. The good news is that those conversations have been overwhelmingly positive and we feel incredibly hopeful that the discussion about SAFE Banking will continue to be a part of the conversation as negotiations progress.

Make sure you stay engaged and continue to tell your lawmakers that you are a cannabis voter and that these issues are important to you! Contact your Senators today and ask that they support SAFE Banking as a necessary piece of legislation that can help the tens of thousands of cannabis workers stay healthy by allowing our industry access to legitimate banking and end our cash-only operations. 

Want to make sure you hear the latest about what’s happening in cannabis policy? Follow NCIA on social media and be sure to share important information and resources as we release them with your networks, because we’re going to need all of us in this together! 

The most important thing anyone can do to make sure SAFE Banking and other important reforms are realized in Congress is to ensure that their cannabis business is a member of NCIA. If you are not yet a member, please support our work by joining today. If you already are a member, thank you for making our advocacy work possible.

 

Looking Back On #10YearsOfNCIA: 2014-2015

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

Earlier this month, I took a retrospective look at the progress NCIA made in its early years (2010-2013). I started with the organization in 2014, so I’m excited today to take a walk down memory lane and look back at another era of NCIA history: 2014-2015! While this timeline is by no means a comprehensive look at everything that’s happened in cannabis policy during those years, here are some highlights:

February 2014

Department of the Treasury’s Financial Crimes Enforcement Network (“FinCEN”) published its own expectations regarding marijuana-related business guidelines. These guidelines, issued on February 14 and commonly referred to as the Valentine’s Day guidance, attempted to clarify Bank Secrecy Act (“BSA”) expectations for financial institutions seeking to provide services to marijuana-related businesses. FinCEN issued this guidance as states continued to set their own cannabis policies, and just months after the Cole Memo was issued.  

May 2014

The Rohrabacher-Farr Amendment passes the U.S. House of Representatives for the first time ever with a vote of 219-189. While I had not started with NCIA just yet, I was in touch with our Director of Government Relations, Mike Correia, that night. Mike spent that evening doing two things: lobbying in the Capitol and running to the hospital to be with his wife, who was in labor! I remember waking up the next morning to learn two things: first, that states with medical cannabis programs and patients were going to be protected, and second, to find that Mike was the father of a baby girl! 

June 2014

NCIA hosts our 1st Annual Cannabis Business Summit & Expo in Denver, bringing hundreds of cannabis industry professionals together. 

October 2014

NCIA hires their second government relations staffer, ME! At the time, I was hired to be the Government Relations Coordinator and it changed my life forever. 

November 2014

Oregon, Alaska, and Washington, D.C. all vote to legalize adult-use cannabis. However, because Congress has the final say over D.C. policies, the District still does not have any adult-use dispensaries. 

March 2015

For the first time ever, pro-cannabis legislation is introduced in the U.S. Senate as S. 683, the Compassionate Access, Research Expansion, and Respect States (CARERS) Act of 2015. I remember that day well– Mike and I were there at the press conference with the architects of the bill, Sens. Booker (D-NJ), Gillibrand (D-NY), and Paul (R-KY).

April 2015

NCIA hosts its Fifth Annual Cannabis Industry Lobby Days in Washington, D.C., and brings dozens of cannabis industry professionals to the halls of Congress to talk directly with members of Congress and their staff. That same month, Mike and I moved into the first NCIA-DC office.

June 2015

The Rohrabacher-Farr amendment passes the U.S. House of Representatives for the second time by a wider margin of 242-186. Later that month, the U.S. Senate Appropriations Committee passed the companion Mikulski medical cannabis amendment by a vote of 20-10. 

NCIA hosts its 2nd Annual Cannabis Business Summit & Expo in Denver. This also marked the first time a Presidential contender (Sen. Rand Paul, R-KY), hosted a private fundraiser with the cannabis industry.

July 2015

NCIA hires two well established D.C. lobbying firms to represent the industry on Capitol Hill. This was the first time in history that a “white shoe” firm worked to further pro-cannabis legislation. Nowadays, there are dozens of lobbying firms involved in this space! 

Sen. Jeff Merkley (D-OR) introduced the Senate version of the Marijuana Businesses Access to Banking Act. This bill was the precursor to the SAFE Banking Act, and to this day, Sen. Merkley is our biggest advocate for banking in the chamber!

September 2015

Sen. Kirsten Gillibrand (D-NY) gives the opening keynote speech at NCIA’s Fall Regional Cannabis Business Summit. That same month, GOP presidential contenders were asked about cannabis policy at a CNN Debate, showing the mainstream acceptance of this issue.

October 2015

Democratic presidential contender and Senator Bernie Sanders introduces the Ending Federal Marijuana Prohibition Act of 2015 (S. 2237), becoming the first major-party presidential candidate to support the legalization of adult-use cannabis. Also that month, United States District Judge Breyer lifted an injunction against a California medical cannabis dispensary, citing the Rohrabacher-Farr amendment.

November 2015

NCIA celebrates its 5th Anniversary in Las Vegas and honors Rep. Barbara Lee (D-CA) with the 2015 Legislator of the Year Award.

 

Photo By CannabisCamera.com

Looking back, those early years of NCIA were without a doubt integral to where we are now in cannabis policy. Make sure you keep an eye on future issues of NCIA’s Cannabusiness Leader to learn more about 2016-2017 and all the progress we made during those years!

 

Committee Blog: What’s Up With Cannabis Standards?

by David Vaillencourt, The GMP Collective, NCIA Facility Design Committee
and
Alena Rodriguez, Rm3 Labs, NCIA Scientific Advisory Committee

The cat is out of the bag despite the continued federal illegality of cannabis in the United States. A few years ago, the United States Pharmacopeial Convention (USP) recognized the need for standardization to address the safety and quality of cannabis used for medical purposes for the now estimated 3 million+ patients across the country. While the National Cannabis Industry Association (NCIA) does not develop standards and does not operate as a self-regulatory organization, it strongly supports the work being done by experienced standards-setting bodies. While NCIA lobbies for federal descheduling, the involvement of the USP and other organizations is another strong indicator of progress with respect to consumer and patient safety. 

The USP is a nonprofit that humbly began with a small group of physicians on a brisk New Year’s Day in January of 1820. At the time, people would turn to their local apothecary for medications, where a druggist would mix together custom preparations from hand-collected plants and minerals. The types and quantities of these ingredients varied widely, with multiple names for the same medicine. Though sometimes not the fault of the physicians, it was not uncommon for the treatment to be worse than the disease. The USP rapidly evolved from a resource to an authority, when the importation of poor-quality medicines from Europe led to the Drug Importation Act of 1848. Tragic incidents of impurities and toxins in drugs over the years ultimately led to the 1938 Food, Drug and Cosmetic Act, in which Congress declared that certain medicines sold in the US must meet applicable USP quality standards. It should be noted that the USP included standards for cannabis preparations in the Pharmacopeia from 1851 until 1942.

Nearly 80 years later, the USP and several other internationally recognized groups are responding to the need to support the cannabis industry despite the quagmire of cannabis legality. Recently, the USP formed an expert panel of clinicians, scientists, and industry representatives from around the world resulting in a peer-reviewed article recently published in the Journal of Natural Products. The recommendations offered in this article (available here) provide a valuable foundation for the alignment of testing and quality attributes for cannabis flower. It is important to note that the USP published this information in a peer-reviewed article rather than a formal compendial monograph because of cannabis’ Schedule I status. Regardless, this article is another critical milestone towards standardization of the widely used plant, and it is only possible with support from individuals with knowledge of cannabis. Fortunately, there are established platforms that we as an industry can participate in and align with, known as Standards Development Organizations, or SDOs, that work closely with the USP to continue the advancement of our industry. In fact, many SDO efforts are referenced in the USP article.

ASTM International is one SDO that has responded favorably to industry and regulatory requests for assistance in standardizing cannabis. Founded in 1898 as the American Society for Testing and Materials, the group pioneered the standardization for the steel used to fabricate rails as frequent rail breaks across the fast-growing railroad industry plagued efficient transport of goods across the country between previously disconnected cities. Of the over 12,800 global standards published through ASTM’s rigorous consensus process, nearly one-third of them are codified within our federal regulations. ASTM Standards help ensure that the products in our lives can be depended on for safety, quality, and reliability.

The next time you wear a snowsport helmet, buy a crib for your child, use surgical gloves, pump gasoline, or get a new roof for your house, thank ASTM for creating the standards that help ensure that these items are safe. And lucky for us, now ASTM is focusing on cannabis standards.

In 2017, Committee D37 on Cannabis was formed, with subcommittees focused on developing test methods, cultivation best practices, quality assurance, processing and handling, security, and electronic devices. Today, over 800 members from 26 countries are actively contributing to the development of voluntary consensus standards. To date, more than a dozen voluntary consensus standards have been passed through the highly respected balloting process, providing specifications on water activity for cannabis flower, guidance on security plans, and many more. You can learn more about Committee D37 here and become a member here.

Another SDO is AOAC International, formerly known as the Association of Official Analytical Chemists. AOAC is a third-party, international association that establishes standard analytical methods and has been around since 1884. With the help of expert volunteers, AOAC ensures all Official Methods of Analysis (OMA) are highly scrutinized, scientifically sound, and defensible. OMA methods are recognized in the U.S. Code of Federal Regulations and are legally defensible in court globally.

AOAC created the Cannabis Analytical Science Program (CASP) to convene experts to discuss, develop, and validate cannabis testing standards. CASP is made up of five working groups: Microbiological Contaminants, Chemical Contaminants, Cannabinoids in Consumables, Training and Education, and Proficiency Testing. So far, CASP has published two First Action Official Methods for Cannabinoids in Cannabis sativa Dried Flowers and Oils (2018.10) and the Quantitation of Cannabinoids in Cannabis Dried Plant Materials, Concentrates and Oils (2018.11) and which are the first internationally recognized methods for potency in cannabis. They have also released several Standard Method Performance Requirements (SMPRs) that are developed through a voluntary consensus process, and prescribe the minimum analytical performance requirements for analytical methods during validation of the method. You can learn more about CASP here and register to join here.

The work of USP, ASTM, AOAC, and others supports effective quality control of consumable products to promote public safety. These organizations create standards that are recognized by federal and state regulations across applicable consumable industries. Standards allow consumers to trust the products they buy have been subjected to thorough safety and quality controls that are the same no matter which state you buy the product in. Each organization has created an expert panel specifically for cannabis in order to help prevent uneven approaches to safety and quality. The efforts of USP, ASTM, AOAC, and AHPA directly relate to NCIA’s mission to promote the growth of a responsible and legitimate cannabis industry. With several thought leaders active both in NCIA and these organizations, it is imperative that moving forward we liaison with each other to ensure cannabis quality efforts are in alignment.

As NCIA says, “our industry is stronger, smarter, and more prosperous when we work together.”

 

Member Blog: How Third-Party Safety And Quality Audits Can Help The Cannabis Industry Self-Regulate And Avoid Mandatory Regulations

by Tyler Williams, founder and Chief Technical Officer of Cannabis Safety & Quality (CSQ)

The disadvantages of receiving a third-party audit are apparent – it takes a lot of time to build a cannabis safety and quality program that meets audit requirements, and the costs of an audit can be relatively expensive. Additionally, if your company decides to use an external consultant to help develop your cannabis safety and quality program, it can add even more costs to the equation. So why bother getting a third-party audit at all if it is not mandatory? If the ethical response of “it’s the right thing to do” does not resonate, consider these more practical responses.

  1. Legal Protection

    Note that the lack of legal requirements for cannabis cultivators and manufacturers does not offer protection from legal action, and defending against litigation can be expensive even if a company prevails.

  2. Brand Protection

    If a consumer becomes ill (or worse) from ingesting or inhaling one of your company’s products, the negative public backlash and decline in consumer confidence can damage both your company’s bottom line and the industry as a whole.

  3. Insurance Benefits

    Insurance companies evaluate cannabis businesses based on their history and their current safety programs they have in place (e.g. GMPs, Recall Programs, Supplier Approval Programs, etc.). Whether or not a company has programs like these in place can influence the costs of their insurance. Additionally, third-party audits give cannabis businesses a verification record that their safety and quality programs are operating as intended. This verification record could help that company when dealing with insurance claims made from recalls or other adverse events.

  4. Marketing Benefits

    Enhance your company’s marketability by becoming certified to a third-party audit standard. For example, the new CSQ Standard lists all their certified locations on their website. This database creates a network of cannabis businesses who all meet industry requirements. Cannabis retailers will be able to search this public database and determine to do business with a cultivator or manufacturer based on their compliance with the CSQ Standards.

  5. Self-Regulation

    By proactively self-regulating, the cannabis industry can mitigate the possibility for high-profile recalls or outbreaks that might prompt regulators, such as the FDA, to establish mandatory and imposing regulations for the industry. Mandatory regulations could have a more burdensome effect and even be more costly than self-regulation with third-party audits.

Self-regulation is always preferable to mandatory regulation, and evidence of this is found in the alcohol industry’s self-regulation of marketing and advertising, as well as the video gaming industry’s self-regulation of video game ratings by the Entertainment Software Rating Board (ESRB). While third-party audits are not mandatory in every region, a voluntary and proactive approach that includes third-party auditing of cannabis cultivators and manufacturers will keep consumers safe and protect your company’s bottom line. All while avoiding adverse incidents that would initiate further scrutiny of the cannabis industry or prompt mandatory regulations.

To ensure that the industry is self-regulating properly, there are five proposed principles for self-regulation through third-party auditing.

  1. A set of transparent and specific standards created by industry stakeholders that includes a public comment period.
  2. External oversight through accreditation bodies, benchmarking organizations, and other external committees to ensure no disproportionate power or voting authority.
  3. A public database in which individuals can search what companies are compliant with the requirements.
  4. Transparent procedures for stakeholders to file complaints and provide feedback on the standards and their enforcement.
  5. Periodic assessments and reviews to determine if the goals of the standards are being met.

In addition to setting sound principles for industry self-regulation, it is also important to highlight things that could potentially go wrong with self-regulation. The following three practices are often associated with the failure of a self-regulating system.

  1. Weak standards that do not apply globally and permit unsafe practices.
  2. The absence of transparency or weak oversight can undermine the objectives of the self-regulating system.
  3. Industry leaders neglect to be part of the movement towards self-regulation.

For this reason, I urge industry leaders to sign a commitment to provide the safest and highest quality products possible and volunteer to be part of the movement of self-regulation of the cannabis industry through independent third-party audits.


Tyler Williams is the founder and Chief Technical Officer of Cannabis Safety & Quality (CSQ). Over the years, Tyler has diligently worked with various industry stakeholders and conducted sample audits on several cannabis cultivators and manufacturers to ensure the CSQ audit requirements meet the needs of this new and booming industry. Tyler currently sits on the Policy Council and the Cannabis Manufacturing Committee for the NCIA.

Before founding CSQ, Tyler was the Vice President of Operations for ASI, one of the leading food safety auditing, training, and consulting companies in the U.S. In this position Tyler was responsible for the certification process of over 3000+ audits annually and managed ASI’s employees and contracted auditors around the world. In addition to managing the day-to-day operations of ASI, Tyler also trained and consulted several different major food and beverage companies around the world to help improve their food safety practices.

In 2019, Tyler started a non-profit organization called Show Me Food Safety. This organization provides resources to small food manufacturers and growers in Missouri to help improve their food safety practices and get on the shelves of local grocery stores.

A Different Kind Of Season: Gearing Up For Appropriations

by Morgan Fox, NCIA’s Director of Media Relations

It’s that time again on Capitol Hill: appropriations season, when Congress determines how to spend – or not spend – your tax dollars for the next year. As you can imagine, this year will be unlike any in recent memory as a cash-strapped nation struggles with how to weather the economic storm caused by the pandemic while finding the funds to support important government functions and programs. Appropriations are also a time when our champions in the legislature are once again introducing sensible cannabis policy reforms through an avenue that historically has been effective. Many of these reforms would actually save taxpayers money!

What’s in:

  • For the second year in a row, language that prevents the Department of Justice from using resources to target state-legal medical cannabis programs was included in the original language of the commerce, justice and science funding bill. If approved or continued, this would be the sixth year that Congress has told federal law enforcement to leave medical cannabis patients and providers alone.

  • Language that would prevent the Department of Treasury from using resources to penalize banks and other financial institutions for working with legal cannabis businesses was included in the financial services and general government funding bill. While not as comprehensive as the SAFE Banking Act, which was approved by the House last year and included in its most recent coronavirus relief bill, this provision would give financial services providers more assurances needed to encourage working with the cannabis industry and would help improve public health and safety.

  • A measure that would protect public colleges and universities from being denied federal funds due to conducting research on cannabis was included in the bill funding agencies related to education, labor, health, and human services. Many institutions have cited the potential loss of funding as a major discouragement to research. This also makes it easier for universities to study cannabis products available in regulated state markets. An additional provision to this bill also prevents federally funded schools from engaging in any advocacy in support of making any Schedule I substances legal.

  • Additional funding would be made available through the agriculture and FDA appropriations legislation for research, regulation, and consumer protection related to hemp, CBD, and other cannabis components.

  • Language that asks the Office of Personnel Management to reconsider allowing federal employees to legally consume cannabis in accordance with applicable state laws without fear of retribution was added to the financial services and general government funding bill. While this is non-binding, it would hopefully encourage the federal government to review its employment practices and not punish law-abiding employees who choose to use cannabis outside of work.

What’s not:

  • A provision that has prevented the District of Columbia from regulating cannabis after voters there approved a ballot initiative making adult use legal in 2014 was left out of the new spending package. So long as it is not added again in either the House or Senate, the nation’s capital will finally be able to fully carry out the intent of the voters more than half a decade after residents decided this issue. Currently, adult possession and limited home cultivation are permitted in the District, but non-medical sales are not.

What could be added:

  • While the spending bill that funds the Department of Veterans Affairs did not originally contain any cannabis-related provisions, supporters are leaving open the possibility that language which would allow doctors in the VA system to recommend medical cannabis to their patients in accordance with state laws to be included before the process is complete.

  • Reps. Earl Blumenauer (D-OR) and Tom McClintock (R-CA), joined by Delegate Eleanor Holmes Norton (D-DC), are considering the introduction of a rider which would prevent the Department of Justice from interfering in any state cannabis program, extending the previously-approved protections for medical cannabis programs to regulated adult-use systems that exist in 10 states and counting. This legislation was approved in last year’s House spending bills but was not included in the final legislation.

It is difficult to tell what will happen with the various appropriations bills this session. There is still time for members of the House to amend funding legislation. While the House is moving forward with these bills, the Senate has yet to introduce any of their own. However, the upper chamber is in the process of considering a new coronavirus relief package. NCIA has been working with that chamber to have cannabis banking reform language included in that bill as it was in the last relief bill approved by the House, but it is by no means certain at this point. It is also possible that Congress won’t reach an agreement on the new spending bills and will simply decide to continue with the prior year’s budget outlays, which would at least continue medical cannabis protections for another year.

Stay tuned for more updates and be sure to join us next Wednesday, July 29, for an exclusive members-only fireside chat with NCIA’s dedicated government relations team!

Committee Blog: Join Us On The Facilities Design Committee!

Make an impact in the cannabis industry!

Our Mission

  • NCIA’s Facilities Design Committee provides access to resources for the NCIA community and regulators that will inform the design and use of GMP-driven, sustainable and operationally efficient facilities to position our industry to compete in the global marketplace.

The FDC is open to all members of the National Cannabis Industry Association. If you have experience and passion in one of the following areas, we encourage you to apply:

  • Systems engineering
  • Controlled Environmental Agriculture
  • Facility Design
  • Environmental Systems & Controls
  • Cultivation Licensing 
  • Cultivation Building 
  • Governmental standards or Associations

Value to You

  • Gain recognition as a thought leader in the cannabis industry
  • Give back to the industry through education, advocacy, and community building
  • Network with other facility design experts across the U.S. 

Participation Expectations & Required Commitment

Members who apply and are accepted must be willing and able to:

  • Commit to an average of 2-4 hours per month
  • Attend (virtually) monthly standing committee meetings
  • Join a working group and contribute knowledge, writing, and resources
  • Align with the mission of the FDC

Current Working Group Options

  • U.S. Legalized States Design Matrix 
  • Tools and Best Practices for StandardizationFacility Design 
    • WGroup Leader Shawn Cooney 
    • Include options for what to do your facility is not producing optimally? 
  • Design related regulations and standards bodies interconnects 
    • Inside NCIA
    • Between NCIA and other regulatory bodies 
    • WG Leader – David Vaillencourt – 

7/1/20-6/30/21 Committee Leadership 

Apply for the committee by August 1 using the committee application form.

 

Allied Association Blog: Repetitive Motion Injuries and the Importance of Ergonomics in the Cannabis Industry

By Alex Hearding, Chief Risk Management Officer, National Cannabis Risk Management Association

Repetitive motion injuries, also known as musculoskeletal disorders (MSD) are temporary or permanent injuries to muscles, nerves, ligaments, and tendons caused by performing the same motion over and over again. Common repetitive motion injuries are carpal tunnel syndrome and tendonitis. According to the Bureau of Labor Statistics in 2013, repetitive motion injuries cases accounted for 33% of all worker injury and illness cases.

These injuries can be mitigated or controlled through ergonomics. Ergonomics is defined as: “The scientific discipline concerned with the understanding of the interactions among humans and other elements of a system, and the profession that applies theory, principles, data, and methods to design in order to optimize human well-being and overall system performance.” Or more simply put: ‘Fitting the job to the person.’ The goal is to eliminate discomfort and risk of injury due to work. Ergonomics can prevent or reduce work-related MSDs and increase work efficiency. 

Every industry and business has tasks that require repetitive motion, the cannabis industry and businesses are no exception. Cannabis operations have some motions and tasks that are similar to many industries, like lifting heavy objects, computer work, and standing for long periods of time. Cannabis operations also have some motions and tasks that are similar to other agricultural operations like pruning and harvesting. 

But there is a task and motion in the cannabis industry that is uniquely its own: trimming. There are many different methods to marijuana trimming, including: pre-harvest trimming and pruning, wet trimming, dry trimming, and machine trimming. All trimming methods have the same goal: to manicure the flower (or bud) to its final product ready for the customer or patient. The process is a tedious one where the trimmer removes the leaves of the marijuana flower with scissors while leaving the calyx and resin (the good parts of the bud). The quality of smoke, vapor, and ultimately the consumer’s experience is affected by the quality of the trim job. 

Traditionally, most marijuana trimming has been done seasonally around the harvest season. Most cannabis grown outdoors is harvested around October and it is common for cannabis farms to have ‘trim crews’ help them for a couple of months. As medical and adult-use laws expand, so do indoor and greenhouse operations. These operations are capable of ‘perpetual harvests’ meaning they can harvest more often; this has to do with the ability to control light and dark cycles. This means many operations can plan to harvest plants monthly, weekly, or daily if they choose. This has changed the demand for trimmers from largely seasonal you year-round demand, increasing the trimmers’ likelihood of repetitive motion injuries.

There is still a lot of confusion with workers in the industry about their rights. While many states have legalized marijuana, it is still federally illegal. Many workers do not know while it is federally illegal, they still have the same federal worker rights and protections every other U.S. worker has including the rights under the Occupation Safety and Health Act of 1972. Under this law, employers must provide a safe workplace, train employees in the hazards of the workplace, and inform the employees of the rights to report work-related injuries. Cannabis industry workers must also be covered by workers’ compensation if they become injured at work.

The lack of awareness about worker rights has likely led to the under-reporting of these injuries. As awareness of worker rights grows, the reporting workers’ compensation claims of these work-related MSD injuries will likely grow too. Pinnacol, Colorado’s largest workers compensation provider, reported that strains were the most common injury reported by cannabis workers in 2018. This should concern everyone in the industry. Cannabis businesses should heed the warning signs and keep their workers safe by developing their own internal ergonomic processes and practices for their operations. 

California is in a unique position as when it comes to cannabis and ergonomics. California is the largest producer of cannabis and has more stringent ergonomic standards. If a California company has more than one employee report a repetitive motion injury, they are required to establish an ergonomic program to reduce repetitive motion injuries. These ergonomic programs require:

  1. A worksite evaluation
  2. Control of exposures which have caused the repetitive motion injury 
  3. Training of employees

Additionally  employers in California are required to have an effective written Injury and Illness Prevention Program (IIPP), to comply with the California Code of Regulations, title 8, section 3203. The IIPP must include procedures to identify and correct health and safety hazards in the workplace and provide effective training to all employees so they can perform work safely.

The cannabis industry is still immature and searching for best practices of operations. While many workers and operators in the industry understand the need for ergonomic standards the reality is that ergonomic standards still need to be defined. This has been the goal of the National Cannabis Risk Management Association (NCRMA) and Dr. Chris Hughes with Atlas Performance Technologies, LLC. They have developed four courses to educate the industry on ergonomics, including: Introduction to Cannabis Ergonomics, Lift Like a Pro, Prune Like a Pro, and Trim Like a Pro. These courses are available through the NCRM Academy and can be found online here: https://ncrma.net/ncrmacademy/ These courses are designed for entry level cannabis workers to inform them of their rights, the ergonomic hazards, proper hazard controls, and best practices to stay safe and increase productivity. 


Alex Hearding has an educational and professional background as a water and soil scientist and safety professional. He has legally cultivated marijuana as a medical caregiver and as a facility manager in a licensed greenhouse. He has experience starting marijuana businesses including license application, facility design, construction, operational development, and management. He currently provides services including occupational safety & health services and training and risk management for the cannabis industry. 

 

Meet The Team: Bethany Moore – NCIA’s Communications Manager

Some of you may already know me from seeing me around at NCIA’s trade shows and regional networking and educational events over the years. I began working at NCIA in January of 2014, just a couple of weeks into legal adult-use (recreational) cannabis sales in Colorado, which is hard to believe was over six years ago! 

I moved to Denver from the Washington, D.C. area and jumped head-first into my role at NCIA, which at the time was as the Membership Coordinator, joining a team of just five passionate individuals in those early days. 

Going back a few years to my time in the D.C. area, I graduated high school in Southern Maryland in the year 2000 and was thrilled to move an hour or so north to start my freshman year of college at the University of Maryland, College Park. My intentions were to major in Journalism with a minor in something like “Interfaith Studies.” I had already started my publishing career at the county newspaper, The Enterprise, in my Junior and Senior year of high school through a school-to-work learning program I had signed up for, where I worked closely with the newspaper’s editorial staff to learn the ropes. 

Unfortunately, my father, who is a Vietnam Marine Veteran, was diagnosed with a very rare cancer that winter which had been caused by Agent Orange exposure decades before. We were told he had two years to live. He began undergoing chemo and radiation treatments, which eventually lead to surgery. This changed life as we knew it for our family, as you can imagine. Today, 20 years later, I’m happy to say my father is alive and well, and happily toiling in his garden in retirement.

I withdrew from the university and moved back to be with my parents for a while, working full time in retail management and studying business courses in my spare time. Wanting more career opportunities than rural St. Mary’s County could offer me, a year or so later, I moved back up to the D.C. area and jumped into the next phase of my career. I spent three and a half years working at the National Foreign Language Center at the University of Maryland, a think-tank-turned-technology non-profit that produces online learning modules for government and military. I started in an administrative position, but eventually moved into the role of Audio Studio Recording Manager, working with native speakers from all over the world, which was truly an enlightening and fulfilling experience. I also “moonlighted” here and there as an audio engineer at Radio Free Asia.

During that time, I discreetly began my activism for medical cannabis reform. After all, it was the early 2000’s, and cannabis wasn’t as widely talked about in a normalized way as it is today. I was even at odds on this topic with some of my friends at that time. I, myself, had begun using cannabis to treat intense anxiety, depression, and insomnia, which inspired me to do further research about the legalization movement and history. On top of that, my interests in healing arts, herbal medicine, and nature-based spirituality coincided with this newfound passion. I began volunteering with the Maryland state chapter of Americans For Safe Access, and spent time learning from my fellow advocates, many of which are now successful in the cannabis industry and some even serve on NCIA’s Board of Directors. This nostalgic progression of advocacy to industry over the years delights me to no end. 

My next career jump in 2006 was inspired by my desire to do interfaith work of some kind, professionally. I personally have followed a nature-based spiritual practice called Paganism, or Wicca, since I was about 12 years old. While I am “out of the broom closet,” I don’t usually talk about that in a professional setting, so I was thrilled to “mix politics with religion” when I was hired as a Campaign Project Manager at Americans United For Separation Of Church And State (AU for short). From 2006 to 2008, we teamed up with The Interfaith Alliance on the First Freedom First Campaign to educate America on various issues ranging from same-sex marriage freedoms, to end-of-life care decisions, to keeping science in the science classroom. My favorite slogan from the campaign was “Democracy, Not Theocracy!”

In addition to the nationwide educational campaign leading up to the election of President Barack Obama, AU also took on a lawsuit that is very special to my heart. In fact, I remember running upstairs to the third floor where the lawyers sat and asking one of my colleagues if this particular situation I’d heard about, which would later be known as The Pentacle Quest, would be something that the organization would be interested in commenting on or supporting. My colleague said he would look into it, and lo and behold, shortly thereafter, our organization had taken on a lawsuit against the Department of Veterans Affairs for discrimination against Wiccans and Pagans who had served and fallen in our military. To make a long story, which I am extremely passionate about, shorter, I will simply say that our team, alongside the Pagan community and our nation’s military veterans, won this lawsuit in 2008 which now allows Wiccans and Pagans to have a five-pointed star, the pentacle symbol commonly associated with our spiritual community, on the gravestone markers and plaques of those who served. This is a time in my early career that I look upon fondly and proudly.

Of course in 2008, as most of us remember, the economy began to suffer and thus entered The Great Recession. As my two-year contract at AU wrapped up, I took a position as a marketing director for a structural engineering firm for a few months until the nationwide layoffs eventually got to me as well. It was a time when those with prestigious Master’s degrees or higher were fighting over entry-level jobs. From there, at the age of 27, I was right back at square-one, along with many others across the country. 

So… “what the hell!”… I moved to Portland, Oregon, to try something different from the hustle and bustle of the Beltway. I spent two and a half years there, trying out my entrepreneurial sea legs, stitching side gigs, part-time jobs, and consulting work together doing public relations and media work (Portland fashion scene, anyone?) to make ends meet.

In early 2011, I received a job offer to move back to Maryland to work as a Multimedia Technology Project Manager at an international financial institution. I enjoyed two years in this high-tech corporate environment as much as the average person might, but again saw department closures and layoffs, which eventually made its way to me. Again. 

However, this time, something greater was afoot, as the position for a Membership Coordinator at NCIA opened up, which I immediately applied for and was hired shortly thereafter.

Over the last six-and-a-half years, I’ve helped NCIA and the blossoming industry across the country grow larger and expand, and have watched it endure ups and downs, and trials and tribulations, but ultimately come together to create an industry that we can all be proud of. 

Serving as NCIA’s Communications Manager, I’ve been truly blessed with the gift and opportunity to serve our industry alongside NCIA members and my team. For nearly four years, I’ve hosted our weekly podcast, ‘NCIA’s Cannabis Industry Voice,’ and worked with NCIA members, committees, allied associations, and staff to produce blog articles, white papers, videos, and more to keep our industry informed, inspired, and connected. I tend to dislike the word ‘marketing’ and prefer to think of my role as that of a facilitator, a storyteller, of our movement, industry, and community

When I’m running around out in the wild, I enjoy playing pinball machines and invite anyone to challenge me to a game. In addition to my witchy, nature-based spiritual path in which I attempt to align myself to the cycles of nature and the cosmos, I also have been writing poetry since I was very young, and currently have four self-published poetry books under my belt, which all feature themes of spirituality, ritual, and nature. Catch me at a poetry open-mic night sometime! In addition to being a lover of jazz music, I also write songs and was a singer in a couple of bands in the D.C. area many years ago, but these days I just sing in the car, or at karaoke bars (pre-COVID-19). 

I’m proud to be serving NCIA in my sixth, going on seventh year at an organization whose mission I dearly and passionately love and support. Thank you for allowing me to assist in telling our collective and individual stories of our industry and movement. 

#10YearsOfNCIA: A message from our co-founder & CEO

Ten years ago, a small group of cannabis pioneers and I set out to launch the cannabis industry’s first national trade association. At the time, only 14 states had legalized medical cannabis, none had adult-use laws, no states had regulated their medical cannabis markets, and there was virtually no interest in federal marijuana reform in Congress.

As NCIA closes out our tenth year advancing the interests of the cannabis industry, all but three U.S. states have some kind of cannabis law on the books, 10 have regulated the commercial production and sale of cannabis for adults, two-thirds of Americans support national legalization, and Congress is closer than ever to making that a reality. And, thanks to hundreds of NCIA members, our organization has grown to become the gold standard for cannabis industry advocacy, education, and community.

This incredible progress hasn’t happened on its own — it’s a direct result of the forward-thinking cannabis professionals who have invested in reform efforts and joined forces with NCIA as members over the years. We also still have a lot of work to do and it’s more important than ever that our industry maintains a strong presence in our nation’s halls of power during this era of global pandemic, economic downturn, and outrage over systemic racism. 

If you run a cannabis business and share our view that the industry should be treated fairly under federal law but haven’t yet become a member of your industry’s trade association, I invite you to help us move the industry even further by joining today. In addition to the investment in vital advocacy efforts, NCIA members enjoy a myriad of networking, information, and educational benefits to gain a competitive advantage over isolated cannabis businesses. 

Already a member or not quite ready to join just yet? That’s okay, you can still contribute to our work by making a generous donation today. Consider it not only an anniversary gift to NCIA but also a simple investment in the future of legal cannabis commerce that we are creating through our ongoing public affairs work. Every dollar counts.

Thank you for your commitment to defending and expanding the regulated cannabis marketplace. Together, we will establish a legal cannabis industry that is forever prosperous, sustainable, and inclusive. 

Here’s to another ten years!

Aaron Smith
Co-founder & CEO
National Cannabis Industry Association

 

*Feature Photo: NCIA co-founders Aaron Smith (left) and Steve Fox (right) meeting up before the organization’s first board meeting in December, 2010.

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