The vaping crisis was first reported in June 2019. In October 2019, the U.S. Centers for Disease Control and Prevention (CDC) coined a new medical term describing the cases of severe pulmonary disease that have occurred among e-cigarette and vape users, E-Cigarette and Vaping Associated Lung Injury, or EVALI. EVALI’s primary cause was determined by the CDC to be vitamin E acetate contamination, mostly in illicit market vaping products, although research into this condition continues.
By the early fall of 2019, the National Cannabis Industry Association (NCIA) formed a Safe Vaping Task Force to respond to the crisis. Together with NCIA’s Policy Council, they released a white paper in January 2020 detailing information about vaporizer components, formulations, testing, governmental response, and recommendations for the industry.
As the COVID-19 health pandemic takes front and center stage on the world scene, vaping related issues and EVALI, becomes even more of a health concern as the novel coronavirus causes respiratory issues. While reported cases of EVALI are slowing down, this public health crisis still looms over us, and it’s been very challenging to fully solve this mystery illness associated with vaping e-cigarettes, and other electronic nicotine delivery systems (“ENDS”). Furthermore, it’s been more difficult to stop the primary root cause: the illicit market.
VAPING, EVALI, AND COVID-19
We’re experiencing a worldwide public health crisis with coronavirus and it’s also affecting the Marijuana industry, as we face “stay at home” orders, slower production or reduced access in some areas, and fear from the community about vaping related respiratory illnesses, EVALI, and death due to COVID-19. It begs the question: Is vaping safe and could vaping put you at greater risk of severe illness during this coronavirus pandemic?
Some health experts say vaping can increase the risk of developing COVID-19 complications and spreading the virus to others because many people share vaping devices. A Bloomberg articlewas published last month, stating the FDA says “vaping could compound health risks tied to virus.” The Attorney General of Iowa along with scientists sent the FDA a letter commenting that they should be more careful giving advice at a time like this, especially given “the pronounced difference in risk between smoking and vaping.”
The Food and Drug Administration (FDA) has supported both positions on vaping but now says there is a lack of evidence to support the worsening of health in conjunction with vaping and COVID-19, while also considering that underlying conditions could be the real culprit.
According to the CDC, those with chronic lung disease are at higher risk for severe illness. The conditions listed with the CDC do not include EVALI, but perhaps vaping behaviors should be considered when determining risk. I am a member of Doctors for Cannabis Regulation (DFCR), an organization that supports the legalization and use of cannabis. DFCR cautions against smoking and vaping during the COVID-19 pandemic because we just don’t have enough research yet.
After reviewing the limited literature, it must be noted that “e-cigarette use” and vaping have cardiovascular risks. Buchanan and colleagues reviewed the limited available preclinical and clinical data and concluded that “E-cigarette use is associated with inflammation, oxidative stress, and haemodynamic imbalance leading to increased cardiovascular disease risk.” Current evidence is available primarily from acute studies and the effects of chronic exposure remain an urgent research question.
PERSONAL PHYSICIAN RESPONSE
As an emergency physician, functional medicine specialist, and medical cannabis doctor, I’ve examined, certified, and managed patients for medical marijuana use in Michigan since 2014. As a cannabis physician, I routinely review cannabis-related science and research and its therapeutic effects, based on forms of consumption, frequency of use, and limited data on patient dosing. I evaluate patients for their therapeutic benefits and patient outcomes obtained by using marijuana in various forms of consumption, in conjunction with their other medications.
As a cannabis physician, I work very hard to get to the source of my patients’ medical issues or problems related to their medical need for cannabis. This also means giving them direction about the use of cannabis, cannabis products, and noting any side effects related to their method of consumption and use of marijuana, hemp, and CBD.
Perceiving the same thing as the general public, my patients frequently say, “I thought vaping was safe.” This is still the case even during this ongoing public health crisis with EVALI and now, COVID-19.
Pertinent health questioning should always involve asking patients about their forms of usage of cannabis, their daily intake, and noting if a person has any side effects related to cannabis usage or any other medications. Since vaping related illnesses were first reported, I continue to educate patients about the possible side effects of vaping. For some people, problems related to vaping may have been present since they started vaping, but were disregarded because they thought it wasn’t serious or of much concern. We need more research to better inform educational programs so patients and consumers can make better-educated decisions on which marijuana products they should use.
HEALTHCARE, THE CDC. AND COMMUNITY RESPONSE
“Do you vape? Do you smoke? Do you have an underlying lung disease such as asthma, chronic obstructive pulmonary disease (COPD, e.g. emphysema), heart disease, or any respiratory problems?” These are the most important questions doctors and healthcare providers should ask patients who present with respiratory symptoms, especially during the worldwide COVID-19 pandemic. All healthcare providers, whether on the frontlines or not, must change their assessment of patients to ask about their lifestyle and any respiratory-related health conditions (past and present). This includes addressing smoking, vaping, and potential side effects.
Patients often delay seeking treatment and the biggest challenge doctors face is that patients might lie about vaping out of fear they will be identified publically or criminally charged if they procured their vaping products from the illicit market. Doctors and other health care providers need accurate information to make a diagnosis and should maintain a non-judgmental attitude and confidentiality when asking patients about their lifestyle and social history.
Detailed information has been created by the CDC for ongoing updates regarding EVALI and related illnesses. Specific information for healthcare providers can be found here.
New tools for physicians include an updated algorithm for the management of patients with suspected EVALI and a Discharge Readiness Checklist. These documents are recommended for use by doctors, hospitals, clinics, and health care professionals and should be followed to help with systematic care and prevention. These tools have been used for EVALI. There have been major updates since the COVID-19 pandemic as of December 2019.
THE FUTURE OF EVALI: CONTAMINANTS AND CONSUMER RESPONSE
According to the CDC and available data, it appears that vitamin E acetate is primarily associated with EVALI, but there could be other substances that are responsible. We now know the illicit market is using vitamin E acetate to dilute their products, but they could use other harmful chemicals in the future. To reduce the risk of lung injury, consumers should purchase vaping products from the regulated market, where products are tracked and tested.
Because there is still so much research to be done, I recommend that anyone who continues to use e-cigarettes or vaping products should monitor themselves for symptoms related to EVALI and see a healthcare provider as soon as possible, especially if you are experiencing the symptoms below.
Patients have reported symptoms such as:
Respiratory symptoms, including cough, shortness of breath, or chest pain;
Gastrointestinal symptoms, including nausea, vomiting, stomach pain, or diarrhea; and
Nonspecific constitutional symptoms, like fever, chills, or weight loss.
Exposure to COVID-19, testing positive or hospitalized and placed on a ventilator
Some patients have reported that their symptoms developed over a few days, while others have reported that their symptoms developed over several weeks.
The American College of Cardiology also released Cardiac Guidelines for cardiac implications of COVID-19, which may mimic respiratory symptoms.
As I mentioned earlier, the FDA previously stated that vapers were at an elevated risk of developing complications tied to COVID-19. However, the FDA also admitted there is actually no “evidence” that vaping makes COVID-19 outcomes worse as noted in this article outlining the FDA’s stance on vaping and COVID-19.
So the jury is out and we are still waiting for evidence on the long term safety of vaping. Asa member of NCIA and the Scientific Advisory Committee, I believe that vaping and it’s long term effects due to acute and chronic exposure remains an urgent and ongoing research question. Is vaping safe, does vaping cause higher risk if you contract the novel coronavirus, and do synthetic flavorings, diluents, or possible contaminants within vaping devices cause harm? More research is warranted.
Member Blog: 5 Ways To Increase Operational Efficiency
by BriAnne Ramsay, CEO of RMCC, and Karen Mayberry, Marketing Director and Co-founder of Trym
In the evolving cannabis industry, companies are streamlining and optimizing their processes.
Labor is the highest expense in commercial cannabis activity across the supply chain, accounting for nearly half of production costs. For example, cannabis cultivation requires a skilled team to support production, harvesting, and processing, and packaging. As a retailer, it’s imperative to calculate labor cost per unit. When these costs aren’t accounted for, inefficiencies lead to lower margins.
Owners and managers are looking at their bottom line and strategizing on how to increase their operational efficiency. In this article, the folks behind Trym and RMCC, share their suggestions on doing just that.
Standard Operating Procedures
SOPs aren’t just for the operating license application, this is your company’s playbook. These procedures outline not what you intend to do, but what you are doing. If you change what you’re doing outside of that playbook; those SOPs need to reflect that.
How do you know your SOPs are being followed? Systems with consistent checks and balances! Data doesn’t lie!
Training and Ongoing Support
Many of us know from experience the cannabis industry has a higher employee turnover rate at 40%-60% within the first 2 months. One might infer it’s because, in a budding industry, we haven’t yet had the time or resources to focus on developing our “training departments” as large corporations have. Cannabis is busy jumping through hoops to satisfy external requirements and therefore we devote our resources to short term needs rather than investing in training infrastructures.
Maintaining a consistent, up-to-date learning strategy with executable trainingplans will help you decrease turnover – in all aspects of your operation. What experience does a new (or seasoned) employee have when coming on board or changing roles? Do they know what happens before they join the team? Day 1? Week 1? After a month? Complex roles may take up to 6 months or longer to acclimate to. If employees get frustrated early on they head out the door. What can you do to prevent this from happening?
Targeted training with ongoing support is crucial to maintain and improve efficiencies. The data shows that investing in your employees decreases turnover and in the long-term, increases your profit margins. According to the Association for Talent Development (ATD), companies that offer comprehensive training programs enjoy a 24% higher profit margin than those who spend less on training.
Communications Strategy
Today’s world demands quick, effortless distribution of information. One way to increase everyone’s efficiency is to enable that flow of information. Decrease the frequency and length of meetings. While important for decision making and collaboration, too many meetings correlates with lower labor efficiency.
Introduce a company-wide communication tool, like Slack, to leave the inbox for truly important emails while also opening up communication between departments.
Build an intranet with internal SOPs, workflow diagrams, important announcements, checklists, etc. Provide your employees with the tools and path to success. When communication flows across departments and seniority, you get a team structure that isn’t limited by bottlenecked decision making. Leadership is more accessible and the company can act quickly, achieving optimal results.
Create incentives for your team to perform great work. Recognize their accomplishments and offer support when necessary. Positive employee morale goes a long way.
Regular Process Reviews
Implement internal checks and balances such as audits, workflows and Key Performance Indicators analysis. Consistently reviewing production data will ensure the licensee identifies their operational gaps and can adapt to more efficient and compliant workflows.
Third-party audits are great resources to identify compliance risks that may not be found through internal audits.
Monthly or quarterly reviews of standard operating procedures are recommended to verify the documents accurately reflect the physical flows and the details reported to the state agency. Perhaps the state has made changes to their regulations and SOPs need to be modified?
Software Tools That Bring Value
Software has the power to automate certain processes and save labor time. When chosen, implemented and adopted correctly, it can greatly increase company efficiency. The first step in software evaluation is identifying the challenges your company faces and the ways in which software can help. Then, evaluate each software product on how well its features and services can support your efficiency goals.
In the cannabis industry, there are many ways to enlist software to optimize workflows. There are traditional software tools like Asana and Slack for project management and internal communication. And there are industry-specific tools like Trym for METRC reporting and cultivation management or Simplifya for compliance monitoring. Check out our piece on implementing Metrc solutions for your cannabis business if you’re in a Metrc state!
RMCC’s training courses, expert counsel, procedures, and documents help businesses achieve and maintain compliance. RMCC helps Operators and Technology companies excel in daily operations, implement seed-to-sale software, provide comprehensive training with on-site evaluations, and gap analysis. We help build the infrastructure of compliance operations through customized Standard Operating Procedures.
Karen Mayberry is the Marketing Director and Co-Founder at Trym.
Trym is farm management software custom-built for cannabis cultivators. Trym improves efficiency and consistency through environmental monitoring, customized task and batch management, and data analytics. Trym is currently integrated with Metrc in California and Oregon, and is used alongside compliance software in other states.
Meet The Team: Tahir Johnson – NCIA’s Business Development Manager
With April 2020 marking a full year that I fully transitioned to working in the cannabis industry, it’s amazing to reflect on the past twelve months and the journey that brought me here. This time last year I decided to leave my job as an investment advisor for one of the largest banks in the country to turn full-time as a patient counselor at a medical dispensary in Maryland. I had started out there part-time but after just a few months I was certain that I had found my true calling in cannabis. The more I learned about policy, the medical benefits of the plant, and the history of the war on drugs the more I knew that I wanted to make a positive impact and to help shape the future of the industry.
My first inclination that cannabis could be a viable industry had come years earlier in 2013 when I was still a financial advisor and saw GW Pharmaceuticals, a company that produced a cannabis-derived prescription drug, issue its Initial Public Offering. I was aware that medical cannabis had been legalized in California and a handful of other states by that time but never imagined I would end up working in the space.
In 2018 shortly after Maryland introduced its medical program, my dad was diagnosed with an inflammatory disorder, and I recalled from a research report that I did in college that chronic pain was one of the top conditions that medical cannabis was used to treat. I encouraged him to get a medical cannabis recommendation and when he expressed concern, I offered to get mine as well to support him. Through that experience, I was introduced to the legal cannabis industry and began to pursue multiple opportunities from starting ancillary businesses and entering pitch competitions to applying for a license as a social equity applicant.
As fate would have it I also met Kaliko Castille in April last year when he was in town for MCBA’s Lobby Day. I already knew about everything NCIA does to advance and advocate for the industry and thought that a role at this organization would be a dream come true. I let him know that I had applied for my current role which was just recently posted, not knowing that as Head of Growth at the time, the position would be in his department. Thankfully, I must have made a great first impression.
With our Cannabis Business Summit taking place just weeks after I started at NCIA in July of last year, I was able to jump in feet first. Since then I’ve had the opportunity to interact with thousands of cannabis business owners and employees from every sector of the industry learning about their goals, success stories, and the challenges that they face. I’ve had the opportunity to see our Government Relations and Policy teams in action in Washington and interact with members of Congress. Nothing was more exciting than having a front-row seat as we watched the SAFE Banking Act, the first piece of stand-alone cannabis legislation pass in the House of Representatives, and knowing that I had worked alongside the team that made it happen!
Given my background in finance, I often think about the economic impact that COVID-19 has had not only on the U.S. economy, but the cannabis industry specifically. I am so proud to be a part of NCIA and the work that we are doing to make sure that #CannabisIsEssential; asking that congressional leadership address the exclusion of state-legal cannabis and ancillary businesses from the recently passed CARES Act and the way that we are supporting our members. In addition to our federal efforts, our new digital marketing options will help our members get exposure for their businesses during a time where social distancing has put most conferences and events on hold.
Over the past few weeks I’ve had the opportunity to speak with many of our members and I know that our industry is resilient and will rise above this crisis. I’m hoping that the pandemic is over soon enough to see everyone out at the Midwest Cannabis Business Conference on my birthday weekend, August 26-27.
Committee Blog: Facts About Current Good Manufacturing Practices (cGMPs) And Their Role In The Cannabis Industry
Good Manufacturing Practices (GMP) are minimum requirements to ensure that products are created in a manner that ensures they are of consistent quality and safe for their intended use. If a product is found to be produced in a facility that does not meet GMPs, they can be considered adulterated and unsafe. In the U.S., the U.S. Food & Drug Administration (FDA) regulates the manufacture and sale of food and beverages, dietary supplements, pharmaceutical products, and cosmetics by requiring adherence to GMPs. The “c” in cGMP stands for current, meaning that how companies conform to GMPs must continually evolve with the development of new scientific research and industry best practices. Today, the two terms are used interchangeably. While cannabis is not recognized as a legal product at the federal level, federal legalization will inevitably result in the requirement for cannabis producers to conform to cGMPs.
cGMPs can be broken into six major sections (1) Management Commitment, (2) Risk Management, (3) Quality Management Systems, (4) Site & Facility Management, (5) Product Controls, and (6) Staff Training (Figure 1).
Figure 1 Major elements of any system that follows Good Manufacturing Practices
Why are cGMPs important?
cGMPs are important for every industry to ensure manufacturers are producing safe products. A site that isn’t following the minimum requirements for cGMPs in their specific industry is putting the basic well-being of consumers around the world at risk, which the FDA terms adulterated. cGMPs provide assurance that steps within the manufacturing process result in passing final product testing. Final product testing alone is not enough to ensure the safety of consumers. In most cases, final product testing is completed on a small sample batch, so that manufacturers are not wasting the final product on sampling and testing. For example, if the manufacturer is producing 1 million dietary supplements, the manufacturer might only test 100 tablets from that batch. This means that if cGMPs are not being followed and there is no consistency in the safety of producing that product, then some of the products may be safe for consumption, while others may not. This results in product recalls or withdrawals, damage to brand reputation, and lawsuits. A recent study by the Denver Department of Health found that 80% of cannabis products on dispensary shelves failed testing despite passing final batch testing prior to sale.
What do cGMPs include?
Every industry regulated by the FDA has its own guidelines for cGMPs, which are found within Title 21 of the Code of Federal Regulations. Unique differences between cGMP requirements for each industry exist. If your company has multiple product lines that fall into any of these different industries, understanding how these differences will impact you are critical. Figure 2 provides a high-level overview of the major GMP topics that are required by industry.
Figure 2 Summary table of major FDA cGMP regulations by industry sector
Industry Type
Location of primary GMPs within 21 CFR
Food & Edibles
21 CFR 117
Dietary Supplements
21 CFR 111
Pharmaceutical
21 CFR 211
Cosmetics
See Draft Guidance for Cosmetic Good Manufacturing Practices
Figure 3 Table of the major industry types regulated by the FDA and where one can find the major cGMP requirements
Not all GMP topics are referenced in the primary section of the CFRs, which can make it difficult for people who are new to GMPs to ensure they are appropriately prepared. For example, the food and beverage cGMPs (21 CFR 117) does not include packaging and labeling controls, whereas the pharmaceutical cGMPs (21 CFR 211) does include packaging and labeling controls. 21 CFR 101 is home to packaging and labeling statues for the food and beverage industry.
Each sector regulated by the FDA has overlap which contributes to talent acquisition/recruitment from other industries.
THIRD-PARTY cGMP AUDITS
What are Third-Party cGMP Audits?
A third-party cGMP audit is a systematic independent and documented activity in which objective evidence is gathered and assessed to determine if the site’s cGMP system is appropriate and effective. In the 1990’s third-party GMP audits were like an inspection you would receive from the FDA or local health department. This means there was a heavy focus on the building itself and what was happening on the production line during the time of the audit. Nowadays, cGMP audits typically include much more than what is required from the Code of Federal Regulations (CFR). Examples of this include extra requirements for Hazard Analysis Critical Control Points (HACCP) and a much heavier review of documentation to ensure best practices are being followed all the time and not just on the audit day.
Benefits of Using an Experienced and Accredited Certification Body
One thing to keep in mind when considering a third-party cGMP audit is whether or not the audit is accredited. Certification Bodies are accredited (approved) by an Accreditation Body, to ensure their internal procedures and audit processes follow strict guidelines for different audit standards. If approved, the CB gets accredited to that specific audit standard. This along with direct oversight of the audit Scheme Owner and the Accreditation Body ensure that the Certification Body has qualified auditors and that the entire audit process goes through several quality checks before it becomes “final.” In the U.S., the three major accreditation bodies approved to do this are:
WHY SHOULD MY COMPANY RECEIVE A 3rd PARTY cGMP AUDIT?
Unlike the food & beverage, dietary supplement, pharmaceutical, and cosmetics industries, cannabis is federally illegal in the United States. This means there are no federal regulations for cGMPs in the cannabis industry. However, some states, such as Florida, have taken the initiative and implemented requirements to have all cannabis facilities become audited to a cGMP standard before they can receive their license to begin manufacturing.
As the cannabis industry continues to evolve, retailers and others downstream in the supply chain will demand that cannabis manufacturers provide evidence of a certain level of quality and safety in their products. An attestation or certificate from a third-party demonstrating that your facility meets cGMP requirements is an internationally recognized way to provide that evidence and establish trust. Globally, third-party cGMP audits are crucial to maintaining product safety and quality by providing a third set of eyes to verify what is working and what is not. Besides regulatory requirements and customers requiring your facility to get a third-party cGMP audit, there are numerous other benefits to receiving a cGMP audit. Some of these benefits include the following:
Reduction in failed product testing
Improvement of product safety
Improvement of product quality and consistency
Eliminating potential risks and possible recalls
Marketing advantages over competitors who are not audited by a third-party
Improvement to consumer confidence and an increase in brand loyalty
ROADMAP TO cGMP CERTIFICATION
Management Commitment
It is essential to the entire cGMP system to have commitment from top-down. Without this, your site will not receive the resources (e.g. people, equipment, tools, budgets) it needs to implement an effective cGMP system. The culture of an organization requires everyone to practice what is lectured. Simply; Say what you do, do what you say.
Start Preparing Early
Be realistically courteous to the timeline by generating an internal analysis. Using the scheme, the audit will be against, create a list of programs you currently have, and which are missing. Working towards a better score early will provide greater long-term value.
The very first thing you need to do before you start making major changes to your facility or procedures is to identify which GMP standard or standards you intend to meet. With this established, you can select a Certification Body and obtain a copy of the audit form or checklist that they will use to assess you.
Assess Your Current Level of Conformance
Establish an audit team and conduct a thorough assessment of your current organization. If this is new to your organization and staff, it is beneficial to work with a GMP expert that has experience in both cannabis and the cGMP program you are going to be audited against. Review your entire system against the audit checklist and highlight or markup items your site is already doing. This allows you to focus on the things you are missing and close any “gaps”.
Implementation and Teamwork
The preparation of an audit should never rest on the shoulders of one person. Your site should establish a multidisciplinary/interdepartmental team to implement the various tasks based on the findings from your initial assessment. Collaboration is key to successfully preparing for a cGMP audit, especially when timelines set by upper management are very stringent.
Training
Training is essential in preparing for your cGMP audit and business in general. This helps close the gaps between what your safety and quality department has developed and what your front-line employees are applying. All employees should understand what cGMPs are and how it applies to and benefits their daily activities.
Establish Your Internal Audit Program
Conducting internal audits is an effective way to not only prepare for your cGMP audit but to continually improve your organization. Breaking down your entire audit checklist into department or process-specific sections, you can establish the frequency of auditing these bite-sized sections. Should they be reviewed annually, semiannually, quarterly, monthly, or continuously throughout day-to-day operations? Some things, like reviewing your suppliers, may only need to be done annually, while things such as pre-operational inspections should be performed daily. Always use the actual audit checklist to observe your documents and facility to see if there are any gaps. Whenever possible, the person or team conducting the internal audit should never review their own work. Establishing any issues or non-conformances should be noted, evaluated, corrected, and closed out.
Schedule Your Third-Party Audit
A third-party mock audit is the closest thing you can get to an actual audit. This is where a third-party company would come in and evaluate your site to the specific cGMP standards and give a formal report over any deficiencies found during the assessment. This is a great way to test your preparedness before the actual audit.
Address Non-Conformances and Celebrate!
Your auditor will almost certainly identify areas where you are not fully compliant, known as non-conformances. Depending on your level of preparedness, you will hopefully have only a few Minors, but non-conformances can be classified as Major or Critical. You will work with your auditor to establish actions and a timeline to effectively resolve these non-conformances and provide follow up evidence of their closure. After successfully closing out your non-conformances, you will be rewarded with a certificate or attestation. Sit back, relax, celebrate! With a cGMP system in place, the established intervals to audit your system will ensure you have the tools and knowledge to maintain your cGMP status!
Member Blog: A COVID-19 Guide For Cannabis Entities
As the fallout from COVID-19 ripples through the economy, cannabis businesses are once again faced with a plethora of conflicting information and uncertainty. As counsel to the NCIA and in service to its membership, Wykowski Law has put together a guide to the most common issues facing cannabis businesses in the wake of COVID-19. The guide focuses on national issues and focuses in on some issues specific to California.
Please check out the guide for more details, but here is a quick rundown of what you need to know as a cannabis business in the age of COVID-19:
As we’ve unfortunately become accustomed to, cannabis has largely been left out of relief efforts, particularly where the federal government is concerned. Like with anything cannabis, this means that we have to dig deeper and be more creative to survive.
What sort of help can cannabis businesses get from SBA, PPP, and EIDL? Are there alternatives?
Generally, the Feds are not going to let MRBs touch these funds. But don’t despair. There are potential alternatives at the state level (in California at least) including CalCAP, IBank, and JSLP. Of course, these programs present their own challenges for MRBs, but they do not categorically rule out lending to the cannabis industry.
What about taxes and tax relief?
Unfortunately, when it comes to the Feds we continue to live under the spectre of 280E which makes so many of the tax credits and relief potentially unavailable. There may be some strategies to take advantage of some of these programs, but they are largely dependent on your individual situation. Check with your tax expert!
Some of these regulations just aren’t practical during a pandemic. Are we really expected to comply?
There’s good news and bad news on that front. In California regulatory agencies are making some allowances including regulatory variances and allowing curbside pickups. But you have to get approval. Double (and triple) check what sort of regulatory relief your state is offering before deviating from any SOPs.
The bad news is that as an essential service in the age of COVID-19, many cannabis businesses are subject to additional health and safety requirements. California OSHA for instance has put out stricter standards for all businesses and we expect there might be more to come due to the nature of cannabis.
Times are tough, but not hopeless. And, all of the above is just the tip of the iceberg. The full guide goes into deeper detail. Of course, the information you obtain here and in the linked guide is meant to be informational only and is not, nor is it intended to be, advice legal or otherwise. For that you will need to talk to your lawyer and/or accountant.
Henry Wykowski is the founder of Wykowski Law a national cannabis law firm based in San Francisco that has represented the industry since its inception and successfully defended it in multiple landmark cases.
Meet The Team – Michael Correia, NCIA’s Director of Government Relations
The journey continues
It’s hard to believe that it has been seven years since I first started working for NCIA. I remember like it was yesterday when I saw the job advertised and thought, “this has got to be the coolest job in America” (which it is!). Being Director of Government Relations has afforded me the opportunity to grow personally and professionally, meet wonderful and exciting people, build something great, be at the forefront of a national movement, and make a little history at the same time. I wouldn’t change one day.
But, these are uncertain times. This COVID-19 pandemic will touch everybody, sooner or later (including myself), and I can’t help but think about those less fortunate than me. My thoughts go out to everybody during these trying times and know that we will only get through this by helping out each other. Although I usually don’t spend much energy reminiscing about the past, when the future is so exciting and limitless; I find it therapeutic and something to take my mind off the stresses we are all feeling.
A lot has changed since I first began my journey in 2013. We hadn’t even had our first legal sales (that would take place in Colorado in 2014). At the time, NCIA had four staff and about 300 member businesses and although the challenges were great, the uncertain future was exciting. Even though I remember thinking on my first day “okay, you have no staff, no budget, no office; where to begin?”
I always knew where I wanted to go.
My vision had 6 main points:
1. Increase the visibility, and acceptance, of the cannabis issue on Capitol Hill and the general public;
2. Bring professionalism to the cannabis industry;
3. Provide cannabis industry representation in D.C. equal to other industries;
4. Build up a government relations office we can all be proud of;
5. Succeed on the eventual federal legalization of cannabis;
6. Transition NCIA into a traditional trade association, post-legalization.
I knew this would not happen overnight, and I knew I wanted to do it right, no cutting corners, and so I took the long view.
I remember coordinating my first NCIA Lobby Days, where 30 brave souls ventured to D.C, now, well over 200 attend! I remember holding our Lobby Days training session in the back of a bar (nothing like learning how to lobby while drinking beers!), whereas now we use hotel ballrooms, provide breakfast, and have multiple speakers. I remember printing our Lobby Days meeting schedule on an Excel spreadsheet (feels like ages ago!), while now we use an app! I remember my first press conference and being too nervous to think straight.
I remember the Washington Post Style Section story on me, and riding the Metro the next day looking at people reading the paper with me on the cover! I remember CBS news following me around Capitol Hill, and having Gayle King give me a shout out! I remember attending marijuana working group meetings on Capitol Hill, when only a handful were interested in the issue, whereas now over 50 regularly attend.
I remember when Congress voted on the Rohrabacher-Farr amendment (that protected medical marijuana from federal prosecution), which won (a year before most people thought it would). I remember that vote, because it was the same day my daughter was born (running back and forth between Capitol Hill and the hospital!).
I remember hiring Michelle Rutter as my coordinator (who has been by my side for almost six amazing years). I remember moving into our first office (and not having to do business at Starbucks any more!).
I remember attending one of my first Congressional fundraisers and a Senator visibly backing away from me as we shook hands (as if I had the plague!). I remember the creation of the Congressional Cannabis Caucus (we were finally legit!).
And I remember the House passage of the SAFE Banking Act (my proudest moment so far!).
When I was hired, I had envisioned federal legalization taking 8-10 years. I am now in year seven and am still optimistic about my dream being realized in that time. Slow and steady wins the race. Legalization will not happen overnight. It will not happen this week, this month, or even this year. And legalization will not happen because “somebody else” gets involved. It will only happen if YOU get involved. Get educated on the issue. Support advocate organizations pushing for cannabis reform. Make donations to state legalization efforts. Join NCIA and come to our Lobby Days this September!!
Eleven states have legalized adult-use cannabis laws (which grows every election!). The support on Capitol Hill has never been higher. NCIA has almost 20 total staff, about 2,000 member businesses, and a beautiful Capitol Hill townhouse that members of Congress use for events. My phone rings off the hook with politicians wanting our money and endorsements. NCIA has most definitely “arrived.” I couldn’t be happier with the results we have achieved and prouder with what we have built. After seven wonderful years (and two amazing daughters), I am still lobbying for NCIA. The journey continues on…
Be safe everybody!
Member Blog: Coming Down From The High – Bankruptcy Alternatives For Cannabis Companies
Despite increasing legalization of cannabis among the states, cannabis products with a THC concentration exceeding 0.3% on a dry weight basis remain a Schedule I substance in the federal Controlled Substances Act. Consequently, bankruptcy, which is also governed federal law, has proven to be inaccessible for cannabis businesses, even businesses with only tangential ties to the cannabis industry. The need for insolvency options for cannabis companies was a growing concern prior to the COVID-19 pandemic, and is now likely even more acute. There are, however, several potential alternatives to bankruptcy for cannabis businesses in financial duress:
Assignment for Benefit of Creditors (“ABCs”):
ABCs are essentially state court insolvency proceedings through which a company’s assets are orderly liquidated. The assets of the company are transferred to a trust administered by an “assignee” selected by the company. The assignee will liquidate the assets and distribute the proceeds to the company’s creditors. Given the nuanced and highly regulated nature of the cannabis industry, a cannabis business considering liquidating through an ABC should select an assignee with familiarity with the industry. Additionally, depending on the jurisdiction, it may be unclear if an assignee will have authority to liquidate a cannabis business’ assets, most particularly the inventory given the licensing requirements. To the extent applicable statutes, rules, and regulations are silent on the matter, an assignee will likely have to seek authorization to liquidate or dispose of assets from the presiding court. Lastly, ABCs are strictly a liquidation process and will not provide for restructuring or continuing operations.
Receiverships:
A receiver can be appointed by a state court to manage a company during troubled times. A receiver may try to improve the operations of the company, or perhaps find a buyer for the company or its assets. Receiverships are often initiated by concerned creditors or shareholders or out of dispute among interest holders. While a receivership may improve a company’s fortunes, or at least bring clarity to its financial situation, the owners of the company may have limited control over the process. Like an assignee in an ABC, there may also be a question whether a receiver can dispose of assets of a cannabis business. Three states (California, Oregon, and Washington) have promulgated regulations permitting the operation of the cannabis businesses and/or disposition of assets by a receiver, and other states are considering similar schemes.
Workouts:
A workout is non-judicial process through which an entity can negotiate with its creditors to restructure the amount or repayment terms of debt. Creditors may be presently more amenable to workouts in light of the circumstances related to the COVID-19 pandemic. A successful workout can enable a company to continue to operate with the same management free of at least a portion of its prior debt burden. A company may also attempt to larger workouts called “composition agreements” with several creditors, through which the creditors each agree to accept a pro-rata payment from a defined source of funds in satisfaction of their debt.
Potential Bankruptcy Options
Bankruptcy may be an option depending on the nature of the business and the jurisdiction. For instance, companies that produce hemp and CBD products, which are products with a THC concentration of 0.3% or below, may be able to seek bankruptcy relief since their products are no longer a Schedule I substance in the Controlled Substances Act. There is also an open question as to whether a U.S. company can file a bankruptcy proceeding under Chapter 15 of the Bankruptcy Code in connection with a foreign insolvency proceeding, such as in Canada, commenced by an affiliate. However, the Bankruptcy Code would appear to provide courts a mechanism to deny such a proceeding as being “manifestly contrary to the public policy of the United States” (See 11 U.S.C. § 1506)
There may also be some daylight for bankruptcy relief for companies with tangential ties to the cannabis industry, such as landlords for cannabis businesses or entities that produce equipment utilized by cannabis businesses states within the Ninth Circuit Court of Appeals (The Ninth Circuit encompasses Alaska, Arizona, California, Hawaii, Idaho, Montana, Nevada, Oregon, and Washington), which recently determined that a debtor could proceed in chapter 11 bankruptcy and confirm a plan of reorganization even though it received rental income from a tenant that was a cannabis grower (See Garvin v. Cook Investments NW SPNWY LLC, 922 F.3d 1031 – 9th Cir. 2019).
Michael R. Herz is an Associate in Fox Rothschild’s Cannabis Law Practice Group. Michael centers his practice on complex bankruptcy and insolvency matters. For businesses in the cannabis sector encountering financial difficulties, he advises and writes on alternatives to traditional bankruptcy, including assignments for the benefits of creditors, receiverships and workouts.
Member Blog: Harvesting Automation In The Time Of COVID-19
by Brett Layne, sales and manufacturing leader at Mobius Trimmer
Coronavirus is shining a light on the vulnerabilities (and inefficiencies) of manual processes in cannabis harvesting.
Coronavirus is disrupting the cannabis industry in North America. And while COVID-19 restrictions vary in different markets, many cannabis cultivators have had to stop or drastically reduce operations to maintain compliance.
Sadly, the long-term impact of coronavirus will force some cultivators to permanently close their doors.
Under the current social distancing mandates, the grow rooms themselves aren’t a problem. Staying 10 feet away from other staffers in a greenhouse is easy, there’s always plenty of space and the ability to rotate and spread out shifts.
Harvesting is the culprit.
Cramped and crowded trim rooms with at least a dozen employees (sometimes more) in close quarters isn’t acceptable or wise under today’s circumstances. Laws aside, many hourly employees are calling in sick or not showing up for work at all. Or even worse, they show up to work with an illness, COVID-19 or otherwise. Skilled workers aren’t easy to replace, but a sick employee introduces a new set of issues.
We’re advocates for highly-automated cannabis harvesting and processing. Automation is perfect for roles that are dangerous or repetitious or can introduce inconsistencies and contaminate products.
And because of coronavirus, the cannabis industry needs automation now more than ever.
You’re ahead of the curve if you’ve automated aspects of your harvesting workflow. And you’re probably still operational.
But it’s not too late for cultivators that are manually harvesting and trimming cannabis to re-think their processes, embrace automation, and adapt tools like automated trimming machines, buckers, conveyors, and mills to stay in business and keep their employees safe.
There are many dated arguments that claim trimming machines take the soul out of cannabis. Hand-trimming is viewed by some as a more refined process that does less damage to the flower. And while most people will always be a fan of craft cannabis, the arguments against automation are, at this point, inaccurate.
The trimming machine backlash was the result of legacy trimmers that weren’t able to match the quality of hand-trimmed cannabis. Today, this isn’t necessarily the case. Innovative machine trimmers can produce a trimmed flower that’s virtually indistinguishable from its hand-trimmed cousins. And the best machine trimmers can offer a level of consistency that hand-trimming can’t match.
If you’re not yet convinced, here’s something to consider: the consumer opinion of hand-trimmed cannabis will change after COVID-19. Customers will feel better knowing that their cannabis has had minimal human intervention.
The best of today’s machine trimmers produce an exceptional product, keep your employees safe, and help you stay in business. It’s a win-win for everyone.
Now is the time to consider automation if you haven’t before in order to keep your operations, your employees, and your customers safe, and watch your business continue to grow.
Brett Layne is a sales and manufacturing leader at Mobius Trimmer, his “forever home.” Prior to his career in the cannabis industry he’s been a brewer, winemaker, industrial rigger, carpenter, and mass-timber builder. He lives in beautiful British Columbia with his family.
Mobius Trimmer takes the complexity out of harvesting by offering the world’s best cannabis and hemp processing equipment. Mobius equipment is engineered for ease of use, scalable output, employee safety, and GMP workflows. Plant material bucked, trimmed, and milled by Mobius equipment rivals product processed by hand.
Backed by harvest consulting experience earned in facilities around the world, top-tier customer service, and an immersive training academy to help you maximize your investment, Mobius is the unrivaled global standard for cannabis and hemp processing.
Here we are in the middle of what feels like the “End-of-the-World-COVID-19-Lockdown” and it has most likely affected every single human being on the planet. None of us are left without worry. On Monday morning, I woke up with a deep sense of dread. I was finding it difficult to get out of bed and face the day… face the week… face this crisis.
Last week, while sheltering in place and working from home, I met with a potential strategic partner – a very professional woman from the East Coast. As our Zoom meeting began, I asked her how she was holding up. She admitted that she wasn’t doing very well, and then literally broke down into tears. I just wanted to reach through my monitor and comfort her. The fear facing our world, our nation, our Industry is palpable. Everyone’s worried about the future. Some are worried about their health, but everyone is worried about the economy and where this crisis will leave us.
So, on that Monday morning when it was time to face the day, I knew I wasn’t alone in this helpless/hopeless feeling. And I knew that the best medicine was to take action. Accordingly, step one was to get up and make my bed.
Seriously.
In his book, Make Your Bed: Little Things That Can Change Your Life… And Maybe the World, Admiral William H. McRaven writes, “If you want to change the world, start off by making your bed. If you make your bed every morning, you will have accomplished the first task of the day. It will give you a small sense of pride, and it will encourage you to do another task, and another, and another. By the end of the day, that one task completed will have turned into many tasks completed. Making your bed will also reinforce the fact that little things in life matter. If you can’t do the little things right, you’ll never be able to do the big things right. If by chance, you have a miserable day, you will come home to a bed that’s made. That you made. And a made bed gives you encouragement that tomorrow will be better.”
This logic makes a lot of sense to me. Sometimes the most important thing we can do is to just keep moving forward.
If you’re going through hell, keep going.
– Winston Churchill
The truth of the matter is that the cannabis industry has already gone through many cycles of difficult times. We’re kinda used to it. And while the American people have decided that cannabis is an essential item, the Federal government has not – so we’re shut out of the stimulus package. But, we are a resilient bunch. The cannabis industry is made up of creative, hard-working, nimble and smart individuals. We are probably better equipped to face this crisis than any other sector.
The fact is, in every crisis lies an opportunity. Consumers reacted to CV-19 by stocking up on weed, signaling to analysts that cannabis may very well be recession-proof. Cannabis stocks are going up (for a change), and investors are whispering that they see cannabis as a safe haven for their hard-earned dollars. That’s good… cuz we’re gonna need it.
This crisis has presented an opportunity to look at your business with fresh eyes and make certain that every expenditure and decision has a positive impact on the financial bottom line. It’s a good time to look carefully at potential strategic partners and business opportunities that will make your company stronger.
But equally important, don’t forget to also be kind to yourself through this extraordinary time. If you are not operating at your typical 110%, give yourself a break (albeit a short one).
Now is the time to find that inner strength, that extra gear. It’s time to dig deep and look around you… Opportunity might be staring you right in the face, but you’re not going to see it if you’ve got the covers pulled up over your head.
So right now, I encourage you to take Step One. Get up… and go make your bed!
CEO Kary Radestock
Kary Radestock, CEO, launched Hippo Premium Packaging in March 2016 offering an array of services to the cannabis market, including: Marketing Strategy, Brand Development, Social Media, Public Relations, Graphic and Web Design, and of course, Printing and Packaging. Radestock brings over 20 years of award-winning print and packaging expertise, and leads a team of the nation’s top brand builders, marketers and print production experts. Hippo works with businesses looking for a brand refresh or an entire brand development, and specializes in helping canna-business get their products to market in the most beautiful and affordable way possible. Radestock’s Creative Collective of talent and experts, allows her to offer world-class solutions to support the unique needs of the Cannabis Industry.
Action Alert: Tell Congress To Include Cannabis In The Next COVID-19 Relief Bill!
While we all continue to do our jobs to flatten the curve in the age of COVID-19, our lobbying team in D.C. has been hard at work on your behalf. We have been working every angle and are exploring any and all opportunities to provide relief for our industry.
The offices of Congressman Blumenauer (D-OR) and Senator Jacky Rosen (D-NV) have taken the lead on sending a letter to congressional leadership asking that they address the exclusion of state-legal cannabis and ancillary businesses from the recently passed CARES Act. But now, we need your help.
In order for these letters to be seriously considered by congressional leadership, we need to get as many members of Congress to sign on as possible. Please consider calling your representative and Senators today and ask them to sign on to the appropriate letter. You can find your member of Congress and how to contact them here.
“Hi, I am calling/writing today to ask that you sign onto Congressman Blumenauer/Senator Rosen’s letter to leadership. This letter asks that state-legal cannabis businesses have access to Small Business Administration programs to ensure they have the financial capacity to undertake the public health and worker-focused measures experts are urging businesses to take. This current lack of access will undoubtedly lead to unnecessary layoffs, reduced hours, pay cuts, and furloughs for the workers of cannabis businesses who need support the most. As your constituent, I ask and urge that you sign on to Congressman Blumenauer/Senator Rosen’s letter as soon as possible. Our industry, our businesses, and our employees cannot wait.“
COVID-19 Cannabis Coalition In Action: Securing Financial Relief
By Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations
In the age of COVID19, advocacy, activism, and lobbying have had to adapt and mobilize quickly, as have all professions during this difficult time. Last week, NCIA along with a group of coalition members teamed up to write and send nearly 100 letters to governors, state treasurers, and cannabis industry regulators letters asking them to help secure financial relief that cannabis businesses are being denied by the federal government amid the coronavirus outbreak.
Our coalition sent two letters: the first was delivered to state treasurers and governors and asked that they speak to their congressional delegations about including a provision in the next COVID-19 legislative relief package that would make state-legal cannabis businesses eligible for Small Business Administration (SBA) assistance. As state officials, they know that these businesses are a legitimate part of the local economy and community, creating good-paying jobs and providing what have widely been deemed essential services to citizens.
The letter also asked that these officials consider creating a state-based lending or loan guarantee program for cannabis businesses; specifically, the creation of a program to fill the gap created by cannabis business ineligibility for the SBA’s Paycheck Protection Program and Economic Injury Disaster Loans. Those programs provide short-term liquidity to businesses and workers to assist with operating expenses, healthcare costs, paid sick leave, other benefits required under federal relief packages, and to help out with ensuring business continuity in the event of an economic disaster. That letter was signed by NCIA, Cannabis Trade Federation, Global Alliance for Cannabis Commerce, Marijuana Policy Project, Minority Cannabis Business Association, and National Cannabis Roundtable.
The second letter was sent to state regulators of medical cannabis programs in eleven different states. Our coalition asked that these states:
Deem medical cannabis businesses essential
Allow home delivery with online and phone ordering
Allow curbside pickup from existing dispensaries, with online ordering
Allow doctors to issue recommendations and renewals via telemedicine
Temporarily eliminate or reduce caregiver application fees
Honor medical cannabis documentation within 90 days of expiration
Temporarily amend existing regulations to ensure adequate staffing
NCIA was proud to work with the same coalition aforementioned, as well as Americans for Safe Access and NORML to send those letters.
It appears that our efforts are not going unnoticed, either– we have received word from at least one state treasurer’s office that they will draft and send a letter on the subject to their congressional delegation. Other states are attempting to set up Small Business COVID-19 Relief funds. The Massachusetts Cannabis Control Commission also voted unanimously last week to send a letter to the state’s congressional delegation asking them to include the cannabis industry in future federal coronavirus aid packages. Massachusetts is notably the only state with a legal adult-use market — which reached $420 million in sales last year — to disallow those dispensaries from operating during this time. A number of dispensaries have since sued Gov. Charlie Baker (R-MA) to reopen the adult-use market.
In Colorado, Governor Jared Polis (D) wrote a letter to Congressman Jared Crow (D-CO), who sits on the House Small Business Committee. He urged the Congressman to do everything in his power to help this industry, writing, “In an ideal world, Congress would include a provision in an upcoming bill guaranteeing that all state-legal cannabis businesses, direct and indirect, will be eligible for these loans. In the alternative, I hope that you can at least work with your colleagues to ensure that Indirect Marijuana Businesses will be eligible for the loans.” Governor Polis also noted that this ineligibility “could have a devastating effect on our business community and tens of thousands of employees.” If you are a Colorado resident, we encourage you to reach out to the Governor’s office and thank them for their support.
That’s not all NCIA is working on, though — we are virtually lobbying congressional offices day and night to ensure that the next COVID-19 package includes relief for businesses involved in the cannabis industry. We are receiving positive feedback and will continue to explore any and every avenue to help our member businesses during this time. Wherever you are reading this from, I hope you, your family, and your business associates are all safe and healthy. We are still fighting for you in Washington, D.C.!
Member Blog: ‘New Normal’ Dictates Label And Packaging Printer Review
by Gary Paulin, VP of Sales and Client Services at Lightning Labels
In a world of uncertainty, reliability and timeliness rule
COVID-19 is altering the landscape in ways unimagined a few weeks ago. With new realities, fears and uncertainties running rampant, it’s time for cannabis and CBD manufacturers and purveyors to recheck their label and packaging protocols right along with products. When it comes to printing and fulfillment, it’s wise to stay as “close to home” as possible.
“Close to home” encompasses two major areas in label/packaging custom printing: They are country of origin and centralized process control.
Country of origin is fairly straightforward. If at all possible, it’s a good time to be “made in the USA.” The uncertainties and disruptions in a number of foreign countries, complicated by the pandemic, make custom label printing abroad a dicey proposition at best.
Centralized process control has to do with how printing, fulfillment, and shipping are managed. The more that is done under one roof, the better. While shipping requires using an outside third party in most cases, everything else can be completed in-house.
Brokering printing and/or fulfillment to outside entities can present a version of the same problem that occurs with foreign countries. Anything done out-of-house is more subject than ever to delays and disruption. Even after COVID-19 subsides, this is a lesson to be learned well going forward.
Summed up, develop, manage and reinforce a reliable supply chain where getting high-quality cannabis labels and packaging printing quickly and economically is Job #1.
Cannabis and CBD companies wanting to confirm that they’re getting the best quality, price and turnaround time consistently and reliably can review options below. Everyone deserves a predictable, quality-driven and customer service-obsessed printer all the time. Right now, it’s even more important with the added pressures stemming from COVID-19 and resulting stressors.
Review factors within and beyond a printer’s control.
Make sure that what’s claimed in the way of processes and workflow is actually practiced. To confirm validity, this is a great time to conduct a virtual tour of the facility to see it in full operation. Video call platforms that make this easy and efficient have proliferated. Don’t hesitate to ask your printer for a tour. As an essential business, printers can remain open to handle all needed functions. So, the virtual tour of operations should show some level of normalcy. Account/sales/customer service teams, however, are likely working from home — so ask to have them chime in on a video conference. That way, you can see the plant in action and assess how well the remote employees are performing in their new “offices away from the office.”
Besides confirming claims, doing a virtual tour will provide insights about workforce stability and morale. Optimally, it’s pretty much business as usual. However, if there are signs of low morale or lagging productivity, check it out further.
Also check to see that operations numbers match up to expectations. Are printing and fulfillment stations manned as expected? How is staffing matching current demand, which for some label and packaging printers may actually be surging?
If something seems askew, such as a printer claiming healthy volume when the plant is almost deserted, keep asking questions. These may be early drops of rain on the windshield, portending a coming storm.
Conduct a problem-solving and contingency-planning meeting with your printer.
In addition to assessing what’s going well, address what could go wrong and how the printer will handle it. As COVID-19 impact has shown, there well may be challenges ahead that—under normal circumstances—wouldn’t be considered high priority. Now, on top of potential twists and turns in the regulatory and various jurisdictional environments, there’s the added challenge of a pandemic.
In cannabis and CBD, the focus for the foreseeable future may well be on increasing versus faltering product demand. How a printer can be nimble and scale to coming challenges on all fronts will likely dominate a variety of discussions for awhile.
Other contingencies may involve direct impact of COVID-19 itself. How well can a printer backstop employees who get sick? How will this be done? Will it be primarily substituting present employees, already well familiar with the company and operations, who have capabilities crossing a number of areas? Or, will new people need to be brought in? If so, where will they come from? What other ways can printers maintain productivity amid these challenges?
Look for present performance in readily documentable areas.
Is turnaround consistent with previous orders? How is the quality? What about customer service availability and timeliness? Are you dealing with the same people as before? Are people acting consistently with pre-pandemic expectations? (If not, you may want to give a bit of grace, as everyone is dealing with unusual stresses.) If everything is essentially business as usual, and you’re getting everything you want and are accustomed to, that’s a win. If there are problems, find out why and problem-solve with the printer. Even if it involves a problem beyond direct printer control, such as a shipping snafu, it deserves troubleshooting for workarounds.
Obviously, this is not an exhaustive list — but it will help ensure that product manufacturers and purveyors continue to get the quality, turnaround, and price they deserve. If there’s an issue that may be COVID-19 related, and the label/packaging printer has been a longtime stellar performer, consider figuring out a solution before going elsewhere. If, however, there’s a systemic, attitude or customer-service problem that looks to be long-term, look for another printer that checks the right boxes.
Gary Paulin is VP of Sales and Client Servicesat Lightning Labels, a Denver-based custom label printer that uses state-of-the-art printing technology to provide affordable, full-color custom labelsand custom stickers of all shapes and sizes. Contact: sales@lightninglabels.com; 800.544.6323 or 303.481.2304.
Meet The Team: Michelle Rutter Friberg – Deputy Director of Government Relations
by Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations
I grew up in rural King George County, Virginia, where I lived until I went to college. Let me just say: if you had asked me in high school where I saw my career going, I would not have guessed the cannabis industry! But, it turns out life had other plans for me.
When I began my time at James Madison University (go Dukes!), my major was undeclared. As time went on, I decided to study Political Science with a minor in History. I learned about our government, political theory, lobbying, and focused primarily on domestic politics. Working on all those papers and assignments for class during my undergraduate studies was where my knowledge of cannabis policy began.
When I was told one day that I could choose any topic to do a research project in one of my PoliSci classes, I somehow came across cannabis. It seemed too easy to write about — you’re telling me this drug is Schedule I but has never killed anyone? But from then on, every time I got to choose a topic, it was cannabis, so I began learning more and more. By the time I graduated, I had a decent understanding of the history behind prohibition, but my mind had turned to the same question everyone I knew was having: what was I going to do now that I had graduated? At the time, the Great Recession had unemployment close to 10%, so I did what many college-aged kids do: spent a month traveling around western Europe! Side note, my favorite city that I visited on that trip was Amsterdam, but not just because of the accessibility to cannabis!
When I came home, it was time to find a job. Eventually, I was lucky enough to be offered a job at a government affairs company in Alexandria, Virginia, where I researched state and local regulations for various clients. After a little more than a year, one of my coworkers mentioned in passing that a gentleman from the cannabis industry was coming in the next day to talk about our services. Before I could stop myself, I asked if I could sit in on the meeting. Lucky for me, they said yes, and that’s where the story of my career in cannabis began.
The gentleman who came in was (and still is!) NCIA’s Director of Government Relations, Mike Correia. While the company I worked for pitched him on their services, all I could focus on was Mike who elaborated on the incredible work NCIA was doing, about how he was a one-man government relations team and working from home. All I heard was: this guy is going to need to hire someone, and I knew it had to be me! After talking to my boss and getting his blessing to reach out to Mike, we set up a time to grab a drink and talk more about the industry. Lucky for me, Mike and I were like old friends catching up, and though NCIA didn’t have the budget at the time to hire another government relations staffer, he said he would keep me in mind. About six months later, NCIA was ready to expand the D.C. team and I applied for the job of government relations coordinator. Words can’t explain to you how happy I was when I received the offer to join NCIA’s team in October 2014.
A lot has happened since I was hired almost six years ago. Nine more states have elected to implement adult-use cannabis programs, and many others have opted to allow for medical marijuana or CBD. The way I was received on Capitol Hill with chuckles about “munchies” or “weed” are long gone, as NCIA and the cannabis industry are now received like any other business sector in D.C. We passed appropriations amendments in both chambers, planned many lobby days for our members, and passed the SAFE Banking Act out of the House of Representatives, just to name a few accomplishments. I went from government relations coordinator, to government relations manager, and worked hard to recently become NCIA’s deputy director of government relations. Not only that, but our government relations team has grown, and what was once just Mike, then Mike and I, has now become Mike, Michelle, and Maddy. The “3Ms” as we are often called are my best friends.
I remember thinking when I started with NCIA: what am I supposed to do now that I’ve gotten my dream job? Now, all these years later, I can tell you: I’m just getting started.
Webinar Recording: Communications Strategy During Times of Crisis and COVID-19
Watch this recent webinar recording from April 8, 2020. With the cannabis industry customer acquisition and service models disrupted by the pandemic, it’s critical to understand that what you do today will affect your business now and have a large impact on your future. Adjusting communications to focus on brand and strengthening bonds with existing customers will help you minimize damage and promote future growth.
In this webinar, crisis experts Jeanine Moss and Nicole DeMeo of Outfront Solutions will outline immediate and practical steps you can take to address crises before, during, and after they’ve occurred. They will provide specific recommendations for the cannabis value chain including cultivators, manufacturers, distributors, retailers, and ancillary businesses. Learn how to build trust and brand loyalty in times of crisis with customers, employees, directors, shareholders, and vendors so you come through with a strong platform for growth and knowing you’ve done all that you can for your stakeholders.
Member Blog: How Risk Management Can Heal Medical Marijuana Businesses
Envision managing the risk of a volatile, staggeringly lucrative, 100 percent federally illegal enterprise. Toss in ridiculously inconsistent federal, state and local regulations, insanely evolving technologies and efficiencies, and an industry-wide disinclination to “play by the rules.” Remember to remove the safety net, because neither cannabis businesses, nor their owners, are entitled to bankruptcy law protection.
However, when armed with decent risk management fundamentals, a marijuana-related business (“MRB”) can diminish most horrible outcomes, fortify the enterprise’s sustained growth, and maybe even get rich along the way.
Risk management is the identification, evaluation, and prioritization of risks followed by coordinated and economical resources application which minimize, monitor, and control unfortunate events’ probability or impact.
Identifying Marijuana-Related Businesses’ Loss Exposure
The Comprehensive Drug Abuse Prevention and Control Act of 1970 prohibits marijuana’s manufacture, distribution, dispensation and possession and lists it next to heroin as a Schedule I controlled substance having “a high potential for abuse”. 21 U.S.C. §§ 801, Et. Seq (1970). Because of marijuana’s one hundred percent (100%) federal illegality, MRB’s are denied many standard “risk management tools” (like credit cards, bankruptcy law protection, and federal patents and trademarks), assembling a “risk management insurance, accounting, and legal advisory team” could prevent an insufficiently prepared MRB from foundering.
Risk management is the process of anticipating losses and developing a plan to survive them through: (1) identify each loss exposure (ex., being sued for a defective product); (2) evaluating each loss exposure’s frequency and severity; (3) weighing, then selecting, each exposure-managing-technique; (4) deploying exposure managing techniques; and (5) reviewing evaluating and improving risk-management plan.
An MRB’ “loss-causing-events universe” encompasses: (1) people (owners, investors, employees, customers and vendors); (2) property (buildings, equipment, crops, inventory, vehicles, data, cash, intellectual property); and (3) profits.
Although people are a MRB’ most valuable asset, and their welfare is the first priority, even the most safety-conscious businesses experience job-related injuries costing thousands in medical expenses and lost productivity. Through enacting safety plans and rigorous employee training, accidents’ frequency and severity can be minimized, employee health and welfare can be protected, and workers’ compensation insurance coverage premiums can be stabilized. Similarly, to prevent a dying investor’s ownership transferring to a less than cooperative relative, MRBs could obligate owners to execute buy-sell agreements requiring their survivors to sell decedent’s portion to the surviving partners.
Unlike people, damaged or destroyed property can be repaired and replaced and its “useful life” can be accurately anticipated and amortized. Unfortunately, due to federal prohibition, MRBs are denied many standard insurances (like crop or cash exceeding $25,000), federal trademark and patent protection, and banking and credit card services.
MRBs’ profits and valuation create the greatest vulnerability and regulatory fines and penalties, business interruption, and lawsuits impose the most perilous risk. Because they endure federal, state and local regulations, MRBs are vulnerable to fines and penalties from federal agencies, state agencies, and each municipality and borough in which they operate.
“Business interruption loss” is where an event halts an MRB’ operations like a wildfire’s soot and ash wiping out a grower’s crops immediately prior to harvest. Before the ensuing revenue-generating-grow-cycle is completed, employees, utilities and rent still require payment and, unless it has 6 months of cash to survive a revenue-less 180 day period, an MRB could get crushed.
Lawsuits range from a single plaintiff seeking damages to class actions in which an entire group of claimants seek compensation. Each year defective, faulty or misused products cause serious injuries and property damage. Although primarily seeking remuneration for personal injury, property damage, or economic harm, product liability claims may also seek punitive relief to punish the defendant and redress harms allegedly done to society. Defending litigation or settling claims can materially drain a company’s resources requiring additional regulatory requirement compliance, developing/ disseminating product warnings, instituting a product recall, deploying employee time to investigate/mitigate claims, investigating/testing products and assessing risk, and hiring expert consultants.
Bankruptcy’s Unattainable Protections
Because of marijuana’s one hundred percent (100%) federal illegality, and because bankruptcy can’t be used to facilitate federally illegal activity or administer assets that can’t be possessed or sold under federal law, bankruptcy protection is denied to both marijuana growers, processors, sellers, and transporters and the parties that own them.
Generally governed by federal law, called the “Bankruptcy Code” (“Code”), the bankruptcy system allows debtors to either dismiss or partially satisfy debts they are incapable of fully paying, and, upon filing, creates an “automatic stay” period during which creditors are prohibited from attempting to collect. Bankruptcy petitions are filed in a federal bankruptcy court governed by federal law, although state laws may determine how debtors’ property rights are affected (ex., validity of liens or exempting property from creditors).
Bankruptcy’s most common form is a Chapter 7 “liquidation” in which the court appoints a trustee to collect and sell debtors’ non-exempt property and distribute proceeds to creditors. Because most state allows debtors to keep essential property, Chapter 7s are usually “no asset” in which there are zero saleable assets to fund a distribution to creditors.
Bankruptcies allowing debtors to keep some or all of their property, reorganize and use future earnings to pay off creditors fall under Code Chapters 11, 12 or 13. Individual debtors usually file Chapter 13s, business entities file Chapter 11s, and Chapter 12 filings mirror Chapter 13 but are only available to “family farmers” and “family fisherman” and provide more debtor favorable terms.
Because the bankruptcy system cannot be used to facilitate illegal activity and the Code provide no mechanism to administer assets that cannot be legally possessed or sold under federal law, bankruptcy protection is unavailable to both Plant Touching MRBs and the parties that own them.
First, because the United States Trustee Program prohibits debtors with marijuana-derived-income-or-assets from proceeding, Plant Touching MRB’s Chapter 7 petitions are usually dismissed upon filing. April 26, 2017 Letter from Clifford J. White, Director, Executive Office for the United States Trustee to Chapter 7 and Chapter 13.
Second, even if a compliant state-licensed MRB debtor is involved, most bankruptcy courts dismiss cases involving marijuana-derived-income-or-assets. In re Arenas, 535 B.R. 845 (B.A.P. 10th Cir. 2015) (denial of marijuana grower/seller and legal dispensary landlord’s motion to convert to Chapter 13 and Chapter 7 dismissal because debtor is unable to propose feasible plan without violating federal law and trustee’s estate administration duties by selling debtors’ assets); In re Medpoint Management, LLC, 528 B.R. 178 (Bankr. Az. 2015) (dismissing “owner of intellectual property leased to marijuana products seller” due to “dual risk” of assets’ potential forfeiture and trustee’s CSA violation in administering estate).
This “bankruptcy protection denial” also may extend to Non Plant Touching MRBs. In re Way to Grow, Inc., (Bankr. D. Col., Dec. 14, 20l8 No. 18-14330)(because hydroponics equipment seller knew or had reason to believe that customers would use equipment to grow marijuana, bankruptcy dismissed because business deemed illegal under 21 U.S.C. §843(a)(7)).
2019 National Law Journal “Finance, Banking, & Capital Markets Trailblazer” award winner, Steve Schain chairs global cannabis law firm Hoban Law Group’s PA and New Jersey practice and chairs its Financial Services Group. With 17 offices and 52 lawyers, Hoban Law Group is the only practice 100% devoted to cannabis and hemp law. Admitted to practice in PA and New Jersey, Steve represents entities, governments, and individuals in litigation, regulation, compliance, preparing and submitting license applications, entity formation, and drafting legislation. A nationally recognized consumer finance litigation, banking law, and cannabis law expert, Steve is a The Legal Intelligencer, New Jersey Law Journal, and Cannabis Business Executive columnist, frequent Pennsylvania Bar Institute, and National Bar Institute author and lecturer and serves as a court-appointed judge pro tempore and arbitrator.
NCIA Committees: Spring 2020 Update On Achievements And Projects
NCIA’s member-driven committees are an opportunity for individuals from NCIA member companies to get directly involved in specific industry issues and sectors. These volunteer-driven efforts engage members’ expertise and passion to drill down in those areas to effect change, provide professional development opportunities, and develop best practices and guidelines that will shape the future of our industry.
We recently checked in with these various committees to learn more about what they’re up to and what projects they’re working on this term. Get updated on their activities below.
Risk Management & Insurance Committee (RMIC)
The RMIC has recently contributed to several NCIA white papers and educational webinars. They are currently working on an insurance manual. The committee has divided into sub-committees responsible for managing white papers, webinars, and the manual.
Scientific Advisory Committee (SAC)
SAC’s vision is to disseminate educational materials to NCIA members on scientific topics in the cannabis industry and to advise on other NCIA initiatives, ensuring that any formal recommendations produced are scientifically sound, sustainable, and legitimate. This term, SAC published a blog discussing why everyone should know about the endocannabinoid system.
SAC is working on other pieces addressing topics such as the recent vape illnesses from a physician’s perspective, indica versus sativa designation, how cannabis can help the opioid crisis, common scientific myths confusing the industry, and budtender and consumer education about the endocannabinoid system.
SAC is also developing a webinar that discusses what should be on a label, how to read a label, and how to associate what’s on a label with either statements on efficacy or marketing/branding.
Cannabis Cultivation Committee (CCC)
The committee has recorded two podcast episodes for NCIA’s Cannabis Industry Voice Podcast. The first was a Cultivation Best Practices Roundtable, hosted by Noni Goldman of the CCC. In that episode, Cody Hitchcock of Smokey’s 420 and James Cunningham of Fog City Farms were interviewed to shed light on their different growing styles and techniques, focusing on the ways that they implement sustainability in their operations.
The second soon-to-be-released interview was with High Times’ new CEO Stormy Simon, and was hosted by CCC Chair Mo Phenix and member Noni Goldman. This interview explored Stormy’s history and how she got to where she is today, as well as what High Times is up to, and where Stormy sees the industry going.
More podcasts to come in the next couple of months from the CCC! Keep an eye out for an episode or two on regenerative agriculture.
Packaging & Labeling Committee (PLC)
The PLC sub-committees have each contributed to a blog or presentation up to this date. The Sustainability sub-committee has worked with Kaitlin Urso and team in regards to their White Paper. A panel discussion proposal has been submitted for future NCIA conferences.
NCIA’s Northeast Cannabis Business Conference in Boston (February 2020) Panel Discussion on the Future of Cannabis Packaging went great!
State Regulations Committee (SRC)
NCIA’s State Regulations Committee has continued to produce content to help educate and inform members on the latest developments in the world of state regulation of cannabis. As the industry’s law and regulations change quickly across the country, the SRC members stay ahead of the curve and share their insight in a variety of forms. These projects include panel presentations at NCIA conventions, published blogs, and interactive webinars. In this quarter, they published three blogs, produced one webinar, presented on two panels, and participated in an NCIA summit.
As the committee strives to keep everyone updated on burgeoning legal topics, the SRC committee presented a webinar on Michigan, a newly regulated market. The webinar provided information on this key Midwestern state, “Michigan’s Adult-Use Market – What Comes Next?”
Conferences:
SRC members also traveled from across the country to share their expertise on panel sessions at NCIA’s Northeast Cannabis Business Summit in February 2020 in Boston.
The Social Equity Sub-Committee leaders, Erin Fay, Chris Jackson, and Margeaux Bruner provided helpful insight during their session, “What You Need To Know For Winning Applications and Successful Operations That Promote Diversity and Inclusion.”
Sean Donahoe and Gabriel Cross of the SRC’s Interstate Commerce Sub-Committee presented on the issues surrounding interstate commerce and strategies for preparing for this anticipated change in the cannabis industry.
Also, SRC members participated in the NCIA’s summit about tackling the illicit market.
The State Regulations Committee is excited about its work and continues to stay knowledgeable about the ever-changing legal and regulatory landscape. Their projected work includes a webinar on the Illinois adult-use market and a wide range of written projects. Stay tuned!
Banking & Financial Services Committee (BFSC)
The committee’s vision is to provide the NCIA member base with current and actionable information related to Banking and Financial Services in the State legal cannabis industry.
They have implemented monthly newsletters for the member base and have been extremely active in response to the proposed federal legislation regarding banking and the cannabis industry.
Human Resources Committee (HRC)
The Committee’s vision is to provide best practices in all disciplines of Human Resources to NCIA members. They have worked on a couple of blogs this year around the recent reduction in force trend and will be releasing a few blogs providing some recommendations for how cannabis employers can navigate CV-19 when it comes to their workforces.
The HR Committee is working on a very exciting case study. They are looking forward to releasing the first few modules of it this summer!
Marketing & Advertising Committee (MAC)
The MAC coalesces the talents of 20 of the industry’s top-tier marketing and communications professionals around three focus areas: Education, Advertising Access and 2020 political goals. The committee uses their personal, professional and business skills and networks to help build a responsible, legal cannabis industry. The committee is producing best practices, webinars, workshops and social media campaigns to aggregate and generate support from NCIA members, the public, media, government and business leaders.
The MAC Education Subcommittee has focused its energies on developing a Speakers/Expert Directory with a goal to launch by year-end.
The 2020 Subcommittee has created its first infographic covering Oklahoma’s 2020 ballot initiatives; infographics for additional states with legalization initiatives on the ballot this year will follow soon.
The Advertising Access Subcommittee is adding more states (as they come online) to their overarching list of “Do’s and Don’ts” for compliant cannabis advertising. Those are pending editing and legal review and will be published on the NCIA website soon thereafter.
The committee is also working on upcoming webinars including “Advertising Best Practices.”
Cannabis Manufacturing Committee (CMC)
The Cannabis Manufacturing Committee is focusing on reviewing existing business practices and state regulations of concentrates, topicals, vaporizers, and edibles ensuring the manufacturing sector is helping shape its destiny.
They are also working on their second publication, “Facts About Current Good Manufacturing Practices (cGMPs) And Their Role In The Cannabis Industry” which will be a resource for essential businesses.
In addition to the work the CMC is carrying out, they are collaborating with other committees to help create an NCIA resource library.
The CMC Testing sub-committee is working on writing blogs about “Positives of Testing” (from the operator’s view), and “Nomenclature: Cannabis Nomenclature Register” for publication.
Retail Committee (RC)
Members of the Retail Committee attended NCIA’s Northeast Cannabis Business Conference in Boston in February 2020 to participate in an educational panel on Retail 101. The committee has an upcoming webinar in April: “Retail: Tips and Best Practices” which will include 4 panelists that are currently license holders or working in licensed dispensaries in 3 different states (CO, CA, WA), and will also address some tips and best practices for the current CV-19 climate.
Facilities Design Committee (FDC)
Committee member David Vaillancourt of The GMP Collective appeared on NCIA’s weekly podcast, NCIA’s Cannabis Industry Voice, in February 2020 to discuss GMPs (Good Manufacturing Practices) in an episode titled “Revolutionizing How Cannabis Producers Achieve Success.”
Best Practices for Cannabis Companies and Consumers During COVID-19
In this time of national crisis, the cannabis industry has come together in a continued commitment to ensuring the health and wellbeing of the public. Cannabis companies have donated personal protective equipment to first responders, hired workers laid off in other industries, and some businesses have even adapted some of their manufacturing capabilities to produce hand sanitizer. As this pandemic has affected every aspect of our lives, we must all do our part to flatten the curve. We are working with state health officials and medical and public health professionals to ensure continued safe access to cannabis medicines and products. To this end, we are providing information to help keep you healthy and ensure safe and responsible cannabis use.
What can the industry do to keep our communities safe?
Industry has been proactive in implementing social distancing measures in accordance with guidelines issued by the Centers for Disease Control (CDC) to ensure the health and safety of our communities, including those most vulnerable to COVID-19.
Proactive measures include:
Increased sanitation and safety measures pursuant to regulations set by the Occupational Health and Safety Administration and local health departments.
Screening employees for symptoms of illness.
Limiting customers and employees in stores, and to the extent allowed by local law conducting transactions through delivery and curbside pickup.
Provide additional or distinct store hours for high-risk groups, like customers over the age of 60.
Calling on cannabis authorities to reduce medical caregiver and patient application fees to limit travel by vulnerable members of our community.
What can cannabis consumers do to stay safe?
(1) Consult with a medical professional before consuming cannabis if you are experiencing one or more of the symptoms of COVID-19.
(3) Do not share joints, pipes, vapes, or other products shared mouth-to-mouth.
(4) Avoid group consumption and follow social distancing guidelines.
(5) Get cannabis from licensed and regulated sources.
(6) Cannabis patients and consumers should consult with medical professionals and CDC guidance to identify the safest methods of use.
(7) If possible, consider choosing non-pulmonary methods of cannabis for consumption
(8) Don’t spread false information about cannabis as a cure or treatment for COVID-19
Important Note from the International Association for Cannabinoid Medicines (IACM):
“There is no scientific evidence that individual cannabinoids – such as CBD, CBG or THC – or cannabis preparations protect against infection with the SARS-CoV2 virus or could be used to treat COVID-19, the disease produced by this virus… Please do not pass on false information that is circulating on the Internet [about cannabis preparations and cannabinoids as a cure or treatment for the SARS-CoV2 virus/COVID-19 disease].”
The cannabis industry is growing rapidly. As more people look to cannabis for the health benefits it provides, the industry is on an upward trajectory and now is a great time to get in on the ground floor.
If you are starting or growing your cannabis business, the people you hire will be very important. Your staff will include customer service reps which will be the face of your business, people who work behind the scenes to make sure you are compliant and organized, a marketing team and those in the warehouse who are responsible for making sure your products arrive safely and securely.
While the market is growing, the industry is quite competitive and you need to do what you can to make sure your business stands out. Hiring the right people can give you that edge. With that in mind, this article will explore the best ways to attract talent to your cannabis business.
Seek the Help of a Specialized Search Firm
It’s important to remember that the best candidates might not be the ones looking for jobs. They are often people that are already in respected positions and, with an attractive enough package, you may be able to lure them in to start working for you.
Certain search firms will know exactly where to look for the talent you need. They will have a network of qualified people that they will sort through before using other tactics. This will ensure that they are picking from a pool of experienced candidates who will know what it takes to help your company grow.
When considering what type of search firms will be best, look into retained recruitment and executive recruitment firms. Retained recruiters are dedicated to finding the ideal candidate for your position and they won’t stop until their job is done.
Executive recruiters, on the other hand, are skilled in finding candidates for top-level positions. Consult them to find qualified people who will see to it that your company is running smoothly and reaching its goals.
Show Your Company in the Best Light Possible
If you are looking to find top tier candidates for your positions, you have to show your company in the best light possible. Remember, you will be picking from a pool of highly skilled candidates who may have their choice of positions to choose from. Therefore, not only will it be important for the candidate to make a favorable impression, it will be important to the company as well.
Companies can do this by offering comprehensive compensation packages including competitive pay, benefits, and perks. A great work environment will also be a bonus.
You also want to do all you can to impress the candidate in the interview process. During this process, be sure to not only ask the candidate questions about themselves but leave them plenty of room to ask you questions as well. Bringing in members of the staff to meet them will also make them feel as if you are showing a real interest in them and want to make them part of your team.
Establishing your brand is another thing you can do to make your company look impressive. Your brand should have a logo, a well-designed website, a strong online presence, a clear mission statement, and a strategic marketing strategy before even attempting to look for top tier talent. A lack of these qualities can make qualified candidates run the other way.
Accurate Job Descriptions
Whether you are going through a search firm or doing your own headhunting, having an accurate job description will be a real bonus. It may seem obvious, but leaving out valuable information like the basic duties of the job, the hours, the benefits and pay offered, the location and anything else that might be relevant can make candidates skip over your ad and move on to the next.
Be sure to add as many details as possible when creating your wanted ads.
Offer Smooth Onboarding
Once you have decided on a candidate you would like to hire, follow up with a smooth onboarding process.
It may be surprising to find out how easy it is to lose qualified candidates during the onboarding process due to lack of communication, lack of support of just general confusion. Make sure that you maintain plenty of contact with your employees while they are becoming integrated into your system. Provide helpful feedback and encourage them to share their feelings and opinions during this pivotal time.
If you are looking to make your cannabis business stand out by hiring a first-rate staff, the steps you take during the hiring process are very important. Team up with the right search firms, make sure you look impressive to the talent, provide accurate job descriptions and continue to support them throughout the onboarding process. Then you can look forward to having a team that will help your company grow.
Jacob Carlson is the Co-Founder and CEO of Fortuna Business Solutions. Fortuna is proud to be one of the first east coast staffing agencies in the cannabis industry being based out of Portland, Maine. Jacob is a serial entrepreneur having previously co-founded a corporate event service (Just Enjoy!) and social media automation tool (RapidCrowd), and he is primed for scaling his next venture with his two co-founders, the Ellis brothers.
Hiring in the cannabis industry is hard, Fortuna Business Solutions makes it easy. We help businesses in the cannabis, CBD and hemp industry find quality candidates to hire on to their team. If you are tired of weeding through thousands of unqualified applicants or struggling to find someone with specific experience, we can help.
Webinar Recording: In the Weeds – Cannabis Advocacy from the Statehouse to Capitol Hill
Watch this recent webinar from March 31 for a lively discussion about how to leverage your company, customers, and industry partners to achieve your state, local, and federal advocacy goals. Whether cannabis is already legal in your state or on the path to being so, learn the advocacy basics to ensure the industry’s, and your company’s, long-term success.
This panel of industry experts discuss:
– What types of activities and interactions with government officials trigger lobbyist registration requirements;
– Best practices for forming coalitions to achieve your advocacy goals, whether at the ballot box or in the statehouse;
– How to form a PAC or other advocacy vehicle; and
– What types of gifts to public officials may be off-limits because of the nature of your cannabis business.
Speakers
Moderator: D. Michael Stroud, Jr.
Partner at Nossaman LLP
Michael Stroud, Jr. brings more than 15 years of legal and legislative policy expertise in border security, infrastructure, national security, tax, transportation, trade, state and local municipal government, and water and wastewater utility. He has advised clients on federal campaign and lobby laws, gift rules, ethics compliance and investigations. Michael has also led efforts on appropriations legislation to obtain legislative changes to advance clients’ interests in the cannabis industry.
Amber Maltbie
Partner at Nossaman LLP
Maltbie is a campaign finance and election law attorney who advises clients in the cannabis industry, including trade associations, private, and publicly traded companies. She advises them on the permissibility of making contributions at the state and local level, preparing and filing campaign finance reports, tracking and notifying public officials who have received client gifts. She has helped develop a banking relationship and facilitated getting its PAC banked. She also advises on support and promotion of ballot measures and legislative advocacy. Amber’s practice covers all 50 states.
William Powers
Partner at Nossaman LLP
William Powers focuses his practice on political law and campaign finance issues. Drawing on his decade-long career in government, including as a top enforcement official at the Federal Election Commission (FEC), Bill helps clients navigate laws related to campaign finance, lobbying, ethics, gift and gratuities and pay-to-play. His clients include companies and nonprofits at the cutting edge of their industries, and he brings a collaborative and flexible approach in helping them achieve their advocacy goals in elections, the legislative arena, and the ballot measure and initiative process.
Meet The Team: Madeline Grant – NCIA’s Government Relations Manager
by Madeline Grant, NCIA’s Government Relations Manager
It’s funny how things just happen… one day, like any normal day, I was working the lunch shift at a restaurant called Carolina Ale House in Columbia, South Carolina. At first, I was worried about how much I would make in tips that day, as anyone with experience in the service industry can relate to, but then I started chatting with one of my tables… small talk, really. I told them how I was a sophomore at the University of South Carolina studying journalism and mass communications with a focus in public relations and a minor in women and gender studies. One man asked, “Well what do you want to do after college?” A question I thought about often but never had an answer to. He handed me his business card and asked if I was interested in politics. A few days later, I reached out, interviewed with the firm partners, and successfully scored the internship.
As I entered the political realm, I knew close to nothing but had a desire to learn as much as possible. Growing up, I was never really introduced into the world of politics as my parents didn’t say much about it – it was a whole new world to me! I attended caucus meetings, sat in the Senate and listened, followed legislation pertaining to their clients, researched, etc. My boss walked in one day and said he had an interesting project for me: to research and find everything I can about medical cannabis. I discovered so many fascinating miracle stories such as the effectiveness of medical cannabis for children with epilepsy. Seeing the great benefits and possibility, I kept thinking: why is this classified a Schedule 1 substance?
Fast forward to the classic “college graduate in search of a job” situation. I moved back home to Frederick, Maryland and started as an intern on Capitol Hill. After two months of interning, I landed a job on Capitol Hill and fell passionately in love with health issues (every staffer that went the legislative route had their assigned issues to become experts on). I began to learn more about cannabis and the detrimental effects of its Schedule 1 status.
Cannabis being classified as a Schedule 1 substance deems it to have a high potential for abuse, no currently accepted medical treatment use, and lack of accepted safety for use under medical supervision. Because of this classification, we can’t fully explore the medicinal benefit that it can in fact offer.
As I started taking more meetings with cannabis advocates, lobbyists, and patients, there was one significant group that stuck with me: a group of mothers and children with debilitating chronic diseases. The mothers were there to advocate on behalf of their children who significantly benefited from CBD oil. They told me a story about a family that uprooted their entire lives for their epileptic child because CBD was the only medicine that was working to reduce the seizures. On that day, I realized how important cannabis is for patients and how it truly can make an unlivable life livable. And that was JUST CBD. Can you imagine what we could gain from the whole plant? If we had the ability to research every single component of the plant, we could begin to know the full, true potential of medical cannabis.
The Schedule 1 status of marijuana hinders research and that needs to change, but thankfully, I can help.
As the Government Relations Manager at NCIA, I passionately lobby for those patients and businesses. I’ve been at NCIA for nearly three years and slowly but surely I’ve seen a significant change in the stigma associated with cannabis on Capitol Hill. It is my job to educate members of Congress, Hill staffers, and the public on all issues the cannabis community faces. This can include anything from cannabis business getting access to banking to educating members on the injustice the war on drugs had on Americans. My job is to educate and tell your stories which I do with great honor. I’m proud to represent you and what you do in the cannabis community.
As we are at home, I would love to meet with you virtually!
As I am unable to be on Capitol Hill right now, I want to use my time to compile your stories to forward to Hill offices, so please reach out if you are able and willing to tell your story. Stay safe and healthy.
Update On the Prospects of Federal Relief for the Cannabis Industry
by Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations
The last few weeks have been difficult for everyone, and most people are justifiably concerned about what the future holds for their health, safety, and livelihoods. This is certainly the case in the cannabis industry, so we wanted to provide an update about where things stand regarding cannabis businesses and federal relief.
As the debate over the most recent federal coronavirus aid package was raging, NCIA and our allies were working tirelessly to urge members of Congress to make legal cannabis businesses eligible for loans and direct payments. A coalition of trade groups also sent a letter to congressional leadership and key committees specifically asking them to include cannabis businesses in consideration for loans through the Small Business Administration.
Unfortunately – but understandably – lawmakers were more concerned with providing assistance to all Americans in need as quickly as possible, and did not incorporate many requests related to special issues and disproportionately impacted industries. However, we received a lot of positive feedback from a number of congressional offices.
As things currently stand, individual cannabis industry employees who filed taxes last year should be eligible for the direct household payments included in the latest relief legislation as long as they meet the standard criteria. It may also be possible for states to use some of the funds they receive from the federal government to support the industry. But for the time being, cannabis businesses are not eligible for SBA loans or direct federal funding.
This battle is far from over though. Congress is in recess until the end of April, at which point efforts will commence on approving the next stage of coronavirus relief funding. Rest assured, NCIA’s dedicated Government Relations and Public Policy team is working night and day to make sure that the cannabis industry is included in the next round of funding so that we can continue to provide our communities – particularly medical cannabis patients – with the safe and reliable access they need. In addition to pushing for SBA loans and direct funding eligibility, we are also exploring ways to remedy some of the other financial problems caused by outdated federal policies, as well as urging state governments and regulators to continue to allow some form of cannabis access for the duration of the pandemic response.
At a time when cannabis businesses are being increasingly recognized as a vital component of public health and economic well-being, they deserve to be treated fairly and have access to the same benefits other businesses are receiving. We will keep you posted on any developments, and please contact your members of Congress to respectfully request that they explicitly include the cannabis industry in future federal aid packages.
Committee Blog: Working With Your Local Government as a Cannabis Processor
If you want to open and operate a regulated cannabis business, there’s no avoiding local government. Every state grants different amounts of power to towns and cities, with some allowing localities to ban cannabis businesses outright, and others simply giving them the same power over time, place, and manner of operations that they have for other businesses. But since cannabis can be a hot-button issue, a proposal to open a cannabis facility often attracts far more attention than opening any other type of business.
To help NCIA members and other cannabis entrepreneurs navigate local government, we at the State Regulations Committee have launched a series of blog posts, with each taking a close look at a different type of cannabis license. Last month, we published our first post, “Working With Your Local Government as a Cannabis Cultivator.”
Today, we’re moving one step down the supply chain and talking about cannabis processors (sometimes also called manufacturers or infusers). Since state programs vary widely, with some licensing cannabis processors independently and others combining processing with cultivation (or even a single vertically integrated license), we will be focusing on the operations rather than the licenses themselves. If you’re seeking a combined license, be sure to read the blog for each activity your business will be allowed to engage in — while there is some overlap, there are also some major distinctions in how different operations can most effectively interact with municipal officials, and you will need to be well-versed in answering questions unique to each phase of your business.
ECONOMIC IMPACT
Like the three rules of real estate being “location, location, location,” the three rules of economic development are “jobs, jobs, jobs.” When proposing a new business in a town or city, local officials are going to want to know how many jobs it will bring, as employment can put money directly into the hands of their constituents and have ripple effects throughout the local economy.
In addition to the raw number of jobs your business will create, it’s also important to highlight the qualifications for those positions. Processing facilities often need to have highly qualified individuals with PhDs or other certifications to manage production processes, and officials will be happy to see the salaries that come along with such positions. Entry-level jobs, such as working production lines, are also worth talking about — even though they have lower salaries than someone with a doctorate, it’s usually much easier to hire local talent for these positions. Any commitment to hiring locally as much as possible is usually a big plus to politicians. Additionally, be sure to mention how much these new employees will add to the local economy, through all the typical living spending they will do.
Setting up and maintaining your facility will also have a major economic impact, especially in smaller communities. If you’re constructing a building to suit, get estimates from your contractors about the jobs your project is supporting, and let officials know how much you’re investing in the build-out. If you’re moving into an existing space, you’ll almost certainly be doing significant renovations to meet the state’s strict safety standards, which is also worth talking about. Towns and cities that are struggling economically will often be very happy to see unused commercial space become occupied, especially if those properties are being improved. If possible, also identify local contractors (like electricians) or suppliers (like lumberyards) you will use for construction.
Finally, there are direct payments to the local government. While officials love to see any sort of economic development, they still have services to provide and a budget to balance, and will want to know what the municipality will be receiving directly. Calculate your building’s expected property taxes, both on an annual basis and 5-10 years out — since cannabis licenses are usually very difficult to re-locate, emphasize that you are in it for the long haul. Be sure to understand your states’ tax structure, and know whether there are any local taxes that the town will receive, or if towns that host cannabis licensees receive any portion of state tax revenue.
PUBLIC SAFETY
The top public safety issue in local officials’ minds when it comes to cannabis processing is almost surely to be butane fires and explosions. This is for good reason — while hydrocarbon extractions can be very safe and effective when done properly, when done improperly they can be incredibly dangerous. City councilors or fire chiefs may have read some of the many headlines about butane-related accidents over the past few years, and it’s up to you to address these concerns directly and honestly. Of course, before diving into these conversations, check to see if the municipality or county has already banned such extraction methods, as some state laws allow local control in this area.
If you’re not planning to perform hydrocarbon extractions at your facility, be sure to tell that to your local officials. They may not realize that there are many other types of cannabis extracts that do not present such safety risks, such as CO2 extracts (carbon dioxide is not flammable, and similar processes are used for decaffeinating coffee) or bubble hash (which uses only cold water). If you have zero interest in ever using hydrocarbons in your facility, putting this agreement into writing may make local officials even more comfortable.
If you do plan to perform hydrocarbon extractions, educating officials on the risks and safety measures is paramount. Most states have extensive regulations on how extraction labs must be set up, which you can email or print out for meetings to demonstrate what you’ll need to comply with. Since the vast majority of butane-related accidents have come from illegal labs with makeshift equipment, show officials the equipment you’ll be using, emphasizing the price and professional quality. The manufacturers may even have fact sheets or other information you can share to demonstrate the safety of their equipment. As you educate officials on your methods and equipment, be sure to keep open lines of communication with the fire chief and building inspector, who will have the most expertise and authority on this aspect of public safety.
Beyond the processing-specific concerns about fires and explosions, all cannabis businesses will have to deal with officials’ concerns about theft. These may be particularly acute for processors since your end products have a much higher value-to-weight ratio than raw cannabis plants. To address these concerns, explain the security requirements in state laws and regulations, and any areas where you are going above and beyond what is mandated. Things like external security cameras and floodlights can both protect your own business and your neighboring community, making a cannabis business a net gain to public safety.
COMMUNITY IMPACT
Once economic development and public safety have been considered, local officials will wonder about the broader community impact of your cannabis business in areas like odor or traffic. This is an easy topic for processors, as they arguably have the smallest impact of any type of cannabis operation.
Processors are generally much smaller than cultivation facilities, and since they’re not full of growing cannabis plants, they also have much less odor to address. Unlike a dispensary or retailer, processors are not open to the public, so town planners won’t need to worry about an influx of traffic. Once you explain how you’ll be operating, local officials should be able to rest easy knowing that to an outside observer, your business will be virtually indistinguishable from a commercial kitchen or light manufacturing facility. If there are still concerns about odor, inform them that modern odor mitigation technology can completely eliminate any odor from leaving your facility.
GOING FURTHER
Once you’ve explained what you’d like to do and how you think your facility would fit into the local community, the conversation isn’t over — it’s just beginning! If the local government needs more time to consider your proposal, then it’s good to keep in close touch and address any additional concerns they have as they arise. If the local officials are already comfortable with your business and are welcoming it into their community (or if your state law doesn’t give local officials the power to stop you from opening up), it’s still great to build that relationship and keep an open dialogue.
Elected officials usually need to know a little bit about everything, but don’t have the bandwidth or in-house expertise to go very deep on most subjects. That’s where you, someone working full-time in the cannabis industry, come in — you almost certainly know more about state laws and regulations than they do, which is a great opportunity for you to serve as a resource. If you hear about changes in the law or proposed bills that could impact their town or city, send over news articles or bill text to help keep them informed.
Once you’re open, it’s always great to offer tours of your facility. This will help officials gain first-hand knowledge of what you actually do, and in municipalities where legal cannabis is new, it can help dispel negative stereotypes and demonstrate how professional you and the rest of the regulated cannabis industry are.
Be sure to stay tuned for future installments in this series, where we will be addressing other cannabis license types. Our next blog will focus on retail.
Welcome to NCIA Today – tune in for our latest episode!
Host Bethany Moore, NCIA’s Communications Manager and host of NCIA’s weekly Podcast ‘NCIA’s Cannabis Industry Voice‘ brings you an in-depth look at what is happening across the country in federal cannabis policy reform and with NCIA.
Off the top, Bethany discusses NCIA’s response to the COVID-19 pandemic, including postponing NCIA’s Cannabis Caucus event series originally scheduled throughout the month of March.
We also check in with NCIA’s Director of Media Relations, Morgan Fox, to hear some of the recent highlights in the news surrounding cannabis policy reform.
Bethany gives a summary of the key findings from the Illicit Market Summit held in Boston in late February. We also check in with NCIA’s Executive Director and Co-founder Aaron Smith to hear more about the industry and NCIA’s response to COVID-19.
The growing coronavirus outbreak in North America has affected businesses of all sizes and sectors, including cannabis dispensaries. Many states have categorized medical dispensaries and retail cannabis stores as essential businesses. But it’s extremely important that any cannabis retailer choosing to stay open during this time take extra precautions to keep their staff and customers safe while still staying compliant with local and emergency laws.
COVID-19 Plan
5 Steps to Get Started With Online Ordering and Delivery Service
Use technology to stay compliant and make your vision come to life
You will have to rely more on retail technology while human interaction and in-person sales are not possible. Online ordering, delivery, line queuing, and no-touch ID verification policies will all require reliable tech. Check with your current POS if they have a workaround to facilitate the new process and integration with an online ordering platform.
Re-design your store layout
Change your store layout to further limit exposure. Take all of the products out of display cases and instead use that space to store fulfilled online orders. Use ropes or another barricade to ensure a six-foot distance between customers and sales counters. Install sneeze guards in front of checkout stations. Use tape or signage to mark where customers should be standing (six feet apart).
Develop operating procedures
These changes will require an update to your operating procedures. You will need a few employees dedicated to packing online orders and another employee on the floor ensuring customers are far enough apart and surfaces are consistently sanitized. If employees are feeling sick, require them to stay home. Some dispensaries are even taking the temperature of employees before every shift.
Train & protect your staff
Be sure to limit the number of customers in the store at a time, so there is ample distance (3-6 feet) between people. Protect your employees and customers with the following equipment:
Touchscreen-friendly gloves for employees
Alcohol swabs for any surface customers touch at the POS
Hand sanitizer
Masks
Lysol or other CDC-approved antibacterial cleaning spray
Faai Steuer is VP of marketing at Cova Software, the fastest-growing cannabis retail POS in North America. An entrepreneur at heart, she has a passion for growing startups and building brands. With 20 years of marketing experience in CPG and retail tech, she lends her knowledge and best practices to help cannabis entrepreneurs in the U.S. and Canada open their first store and grow their business through vital thought leader content.
Cova is an award-winning, seed-to-sale compliant POS with an intuitive design and robust tech platform, making it the most reliable cannabis POS system on the market. Cova helps dispensaries simplify compliance, raise the customer experience bar, and increase revenue through automated compliance capability, express check-out app, and integrated delivery solutions. Learn more at www.covasoftware.com.
Webinar Recording: A Spring Federal Policy and Government Relations Update
In this webinar from the morning of Friday, March 27 at 10:00 AM MT, NCIA’s Director of Public Policy, Andrew Kline, presents an update focused on federal cannabis policy issues taken up by NCIA’s Policy Council, including vaping illnesses, highlights of the findings from the Illicit Market Summit, and comments to be submitted to the DEA and NIDA. We also explore the COVID-19 responses across the United States.
Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations, shares information about how to stay politically active on behalf of cannabis policy reform while still practicing physical distancing during the COVID-19 pandemic. We explore the impact that COVID-19 is having on small cannabis businesses, plus an update on the action and movement we’ve seen in Congress, including a recent letter sent regarding Small Business Administration loans for cannabis businesses.
Speakers
Michelle Rutter Friberg
Deputy Director of Government Relations, National Cannabis Industry Association
Michelle Rutter Friberg is deputy director of government relations for the National Cannabis Industry Association. Prior to working for NCIA, Michelle was a research analyst at a government affairs firm in Washington, D.C., where she analyzed and tracked legislation on numerous issues. Michelle graduated from James Madison University in 2012, receiving her Bachelor of Arts degree in Political Science with a minor in History. During her studies, she held a year-long internship with Virginia House of Delegates member Tony Wilt (R). There, she communicated with constituents, businesses, and government officials alike, facilitating meaningful conversations. Michelle was also a member of a pre-law fraternity where she planned events and hosted social functions that sought to encourage long-lasting professional and personal relationships with members. A native Virginian, Michelle currently resides in the Washington, D.C. neighborhood of Capitol Hill.
Andrew Kline
Director of Public Policy, National Cannabis Industry Association
Andrew Kline is NCIA’s Director of Public Policy. In this new role established in early 2019 at NCIA, Andrew leads NCIA’s substantive public policy efforts, striving to prepare and protect the state-legal cannabis industry. He will also lead NCIA’s Policy Council, a group of NCIA members focused on influencing federal and state public policy. Kline most recently served as President of the National Association of Cannabis Businesses (NACB), the first self-regulatory organization for the high-growth cannabis industry. At the NACB, Andrew led the creation of national standards for the state-legal cannabis industry, oversaw its standards governance board, and led day to day operations and strategic planning. Kline has a deep and celebrated background in public policy, law enforcement, and coalition creation/management. He is renowned for his ability to create solutions to complex domestic and global public policy issues that appeal to both private and public constituencies.
NCIA’s Human Resources Committee hopes that you and all your employees are healthy during this outbreak. Many states continue considering cannabis-related business as ‘essential,’ so the HR Committee met to discuss ways NCIA member companies could navigate the impact of the COVID-19 outbreak on our cannabis businesses to help ensure you and employees minimize your risk of spreading and contracting the virus in the workplace.
We are confident that our fellow member companies strive to create a safe and healthy work environment for their employees, but we have brainstormed a few extra precautions cannabis companies may want to consider during this outbreak.
One of the best resources we have seen thus far are the WHO guidelines put in place for workforces.
Some additional best practices we have seen from dispensaries, processing facilities, and cultivation sites are as follows:
Time Login/Logout
Consider using an app so employees can login/logout on their own phones versus signing in/out, using a time punch system, or everyone logging in/out on the same computer system.
Cash Handling
We know that cash handling & computers being used by multiple people is a concern for many employees. Consider purchasing gloves for employees to use. If gloves aren’t available due to medical personnel needing these supplies at this time, offer additional breaks so employees can wash their hands between each transaction with a customer.
Product Packaging Handling
If you’re in a state where customers are allowed to touch the product packaging or sample containers, consider also having gloves available for customers to use. You should also have some form of cleaning wipes available to wipe down packaging, sample containers, etc. after each customer has touched them, along with wiping down cabinet tops between each customer. Seeing as these supplies are sometimes not available at this time, consider putting up a notice stating that in order to keep customers safe during these times, only Store Employees will be handling product packaging.
Safe Distancing
For retail stores, you may want to even consider installing plastic/glass barriers (think similar to what we had back in the medical days or you see at banks) in order to keep employees/customers safe. For Producer/Processer cannabis companies, you should try to keep employees at the 6-foot minimum distance. If you’re not already operating in multiple shifts, you may want to consider doing this as well so you can continue regular production but space out workers so they feel safer in this environment.
Hand Washing
Add additional hand sanitizer stations and consider hiring additional staff and/or appointing one of your current staff members to wipe down all surfaces every 30 minutes.
Thermometers
Consider purchasing thermometers for each employee so they can check their temperature multiple times/day.
Curbside Pickup or Appointment-Based Purchasing
Consider adding to your website a mechanism for customers to pre-order online with curbside pickup, or to schedule an appointment to visit your store. This can help to keep the number of customers in your store at any given time relatively low, while maintaining consistent business throughout the day.
Encourage Delivery
While not all states have delivery available, those that do should try to encourage its use. This will help limit contact between your workers and customers.
We are sure our fellow members will have plenty of other valuable suggestions, so we encourage you to share your best ideas in the comments section of this blog post, on NCIA’s Facebook page, so we can all work together to keep our cannabis community safe during these times.
Member Blog: Protecting Your Cannabis Dispensary During The Coronavirus Outbreak
Amidst the coronavirus outbreak, cannabis dispensaries across the U.S. are posting record sales numbers. Many people are stocking up on what they consider to be the essentials. While we are always excited when our clients see increased sales, we need to emphasize the following:
Do not trade a short-term jump in revenue for the long-term damage you can do to your customers, employees, and community by continuing to operate your business as usual. It is NOT business as usual for most Americans right now, and precautions need to be taken by dispensaries that are continuing to operate.
Be ahead of the curve. Be proactive with the measures we outline below rather than just responding to coronavirus restrictions when you are required to. It shows that you put your customers and staff’s health ahead of profit… Which you should be doing anyway. Being the first in your market to voluntarily adopt these precautions is newsworthy, and you may be rewarded with some media coverage if you spin it right.
Cannabis is a medical necessity for many of your customers, whether they do their actual shopping on the rec or medical side. And your employees are depending on their jobs to continue to support their families during this very difficult time. That’s why we encourage dispensaries to continue to serve their customers and staff but to do everything in their power to reduce the risk of spreading COVID-19. And while there is no way to eliminate the risk entirely while continuing to operate, there are many things you can do to reduce the risk of spreading the virus amongst your staff and customers.
Encourage online ordering
If your dispensary is in a market that offers online ordering, offer incentives to encourage customers to do this. Make sure you send e-blasts and text messages advertising the incentive, and include a pop up on your website promoting it.
Offer curbside pickup or delivery
If you’re in a state that allows it, like Michigan, offer curbside pickup. Many places already offer delivery. Either of these are far better options than allowing people into your store, and should be encouraged with an incentive. If you need to beef up your delivery staff, remember that there are many, many folks in the service industry that are now desperately looking for work as restaurants and bars are closed down. If you’re in a market that allows curbside pickup, delivery, and/or order ahead, then considering shutting down in-store purchases completely.
Limit the number of people in your waiting room and/or store
Social distancing is the mandate across the entire country, so reducing the number of people physically in your dispensary at any one time is critical. Consider a “call-back” service, similar to how many restaurants operate their seating. Customers give you their name and phone number and are added to a list. They can then go wait in their car until you call them to come into the store to make their purchase. It slows down the customer flow but will drastically reduce the number of people in close proximity.
Require hand-sanitizing before entering the store
This one is simple! In most states, dispensaries have the right to refuse service to anyone for any reason. Have an employee stationed at the door and require customers to apply hand-sanitizer before entering the premises. Refuse service to anyone that won’t use the hand-sanitizer.
Rotate staff on “round-the-clock” cleaning
Every business that remains open should be conducting a deep cleaning multiple times per day. Critical to that is sterilizing the “problem spots” that are most commonly touched by customers and staff inside your store. Light switches, door handles, credit card terminals, ATM buttons, and computer keyboards. If you have a location and staff large enough to support it, then consider round-the-clock cleaning of the interior.
Shut down your store
Drastic times call for drastic measures.Pro-actively closing down your cannabis dispensary even before it’s required by law may be the best option for some business owners. In certain markets, it may be the only responsible choice. Consider the fallout and permanent damage to your business if a customer or employee is infected, gets seriously ill, or dies because of an interaction they had in your store.
It’s important to keep in mind that this jump in sales and/or complete closure are only temporary. Regardless of what you do with your dispensary, consider the long-term implications of your business choices.
When things do return to normal, how will your stakeholders view your actions or inactions?
If you must close your dispensary, keep your community close and engaged. Consider offering formal and informal virtual events, merch giveaways, contests, or educational webinars. There are lots of streaming and collaboration tools available, including many that are free or nearly free.
Johnathan McFarlane is the Director of Strategy at Hybrid Marketing Co. Hybrid Marketing Co is a Denver-based branding and marketing agency that specializes in building custom strategies that supercharge growth and drive revenue. Working with brands and businesses across the U.S. and Canada, Hybrid’s partners run the full-spectrum of the cannabis world including dispensaries, manufacturers, cultivators, and ancillary businesses. Visithybridmarketingco.comto learn more about theHybridapproach.
We have plans in place with several of our clients to maintain their brand visibility if a total shutdown is necessary. We are offering completely free continuity-planning sessions for any cannabis business that is worried about their future.
A Message For Our Members About COVID-19
As the coronavirus pandemic becomes more severe and containment measures increasingly disrupt our normal lives, I’m sure many of us share the same concerns. Will my loved ones and I be safe and healthy? What will happen to my job or business? What does the future look like?
In periods of such uncertainty, I always look to family. Not just my own, but my NCIA family – our staff and valued members who have stood with us through so many challenges. I know that together, we can all get through any struggle.
Perhaps just as importantly, I rely on NCIA’s core values to guide me in difficult times.
First and foremost, we have a responsibility to promote the health and safety of our communities by doing whatever is necessary to halt the spread of the virus.
For the past several days, NCIA’s staff has been working remotely in Washington, D.C., Denver, and California. And we are proudly advocating for federal relief for the industry, still pushing for Congressional reforms as much as possible under the current limitations, and continuing to build inclusive coalitions across the country.
And we are educating state policymakers on the need for consumers, especially patients, to obtain clean and tested cannabis from legitimate sources for the duration of the coronavirus response. NCIA and our allies are reaching out to state governments, urging them to declare cannabis businesses “essential” as early as possible and to take measures to facilitate safe access. You can help us by personalizing this template letter and sending it to your governor.
We understand the frustration and fear that many of our members may be feeling as we move forward into unknown territory. However, our industry is used to weathering the worst of storms and thriving in the harshest environments. The number one priority for everyone should be to minimize the duration and impact of this horrible situation that is costing lives.
As such, we are urging all our members to do the following, as applicable to you or your businesses:
Please strictly adhere to all federal, state, and local health guidance. This is essential for slowing the spread of the virus as soon as possible.
Prioritize patient access. At a time when the healthcare system is already overburdened, it is vital for our most vulnerable neighbors to be able to get the medicine that works best for them.
Limit in-person retail operations to maximize social distancing and utilize alternative service options. We should try to go above and beyond official guidance, as well as encourage things like delivery, online ordering, drive-thru, and curbside pickup where available.
Implement additional cleaning and sanitary practices at every level. This industry is already a great example of cleanliness, but we can always do better.
Encourage telework to the greatest extent possible. There are many ways to make this easier in the modern workplace, and it is quickly becoming the norm during the pandemic.
If you can, please consider contributing to local efforts to assist those most in need in your communities. Coronavirus is affecting everyone, but some are feeling the impact much more than others. Generosity and compassion will help us all get through this together and come out stronger.
In order to protect the safety of our staff, event partners, and members, we have postponed our 10th Annual Cannabis Industry Lobby Days — originally scheduled for May — to September 15-17. We are committed to providing the value embodied by the affected events to our members later this year, and in the meantime, we will be creating new digital opportunities to learn, network, advocate, and make your businesses stand out.
We continue to monitor all our other events including the Cannabis Business Summit in San Francisco, and will be in touch in the days ahead with any updates.
NCIA is confident that the industry will rise to this occasion and continue to grow and thrive. Because that is exactly what we do best! We persevere and overcome obstacles that seem insurmountable. And we assure you that NCIA will continue to represent the industry in our nation’s capital and offer support to help you get through the weeks and months ahead.
In health and unity,
Aaron Smith
Executive Director and Co-founder
National Cannabis Industry Association
How To Stay Politically Engaged in the Age of COVID-19
Photo By CannabisCamera.com
by Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations
Over the last few weeks, life in America has changed, and will remain so for the foreseeable future. However, even though most of us are practicing social distancing and working from home, there are still ways to remain politically engaged during this election year. Whether you use these tips to talk to members of Congress about COVID-19 or cannabis legislation, we encourage you to continue to communicate with your elected officials.
Here are a few ways you can do that from the comfort (and safety) of your own home:
Call your legislators
In the age of technology, we are lucky to have so many different ways to communicate with each other. Arguably, one of the most effective ways to contact your representatives and senators is by calling their offices. You can check out NCIA’s website for some do’s and don’t’s of calling, and if you need your elected officials’ contact information, you canfind it here. Pro-tip: try calling your legislators’ district offices – they are usually less inundated with calls than their D.C. counterparts.
Go old school: write a letter (or an email)
Sometimes it’s nice to be able to sit with your thoughts and write them down – plus, it’s also a great way to pass some time while at home. Put those skills to work and consider writing your elected officials a letter or an email. Remember to always keep it professional, but also be sure to include your personal story.
Stay informed: read the news, a book, or listen to a podcast
As citizens, we all have a duty to stay informed, and this is a great time to delve into some new content! You can settle in with your favorite cannabis product and a good book (politics, history, or whatever you like!), or hop online to check out the news or go down a Wikipedia rabbit hole. If reading isn’t your thing, try searching for a new podcast – we recommend NCIA’s Cannabis Industry Voice. One rule, though – always make sure whatever you’re consuming is from a reliable source.
While no campaigns are knocking on doors right now, there are still opportunities to get involved with one and help out from home. With 2020 being an election year, it’s important to remember that you don’t have to volunteer to help with the presidential race, either – you can help a local or state candidate, or a member of Congress. You can volunteer for the RNC, or if you’d prefer, help out the DCCC. Making phone calls for a candidate is also a great way to get some social interaction!
Follow your elected officials on social media
Once you’ve identified who your elected officials (or candidates) are, find them on Facebook, Twitter, and Instagram. Not only is this another great way to get in touch with them, it’s also a way to stay informed as many of them are holding virtual town halls and “live” sessions. When interacting with these accounts, always remember to remain respectful.
Here at NCIA, we are all encouraged by our members and their dedication to patients, consumers, and overall public health, and we will continue to serve and advocate for you, even during these difficult times. COVID-19 will not last forever, and we will soon be back in the halls of Congress talking to members and their staff about the importance of reforming our outdated cannabis policies. Until then, stay home, stay safe, and stay healthy!
Member Blog: Attracting Investors Requires Compliance And Scalability
by Frank Nisenbaum, Vice President of ERP Sales, c2b teknologies
More new cannabis entrepreneurs are trying to carve out space in the industry, and as the market continues to expand, so are cannabis investors.
This comes as no surprise. Cannabis investors have more predictable ways to invest in cannabis companies since marijuana can now be found in everything from beverages to beauty creams.
But the needed operating capital coming from these investors isn’t being thrown at new upstarts riding on nothing more than the dream of success in the legal marijuana marketplace. Cannabis investors want to see the people and businesses into which they put capital have a strong commitment to their industry and a dedication to their processes. Of course, this entails strict adherence to local, state and federal regulations for compliance initiatives, but investors also want to see a solid foundation for expansion and scalability in place.
Scalability
Consider your projected growth over the next few years, what are you doing to meet it? Investors want to see more than forward-thinking ideas, they want to see the initiatives you’ve put in motion to meet your projections. Are you upgrading suppliers, creating new products, or even better, adding new locations?
Investors need to believe that organizational leadership has a sound plan for scalability in place. More importantly, as you expand into new markets and grow your product offerings, you have invested in the framework and infrastructure in order to grow their operation in line with your business plan.
Regulation and Compliance
Among the more burdensome compliance issues for cannabis operators is the need to track the entire lifecycle of cannabis products from seed to sale. You need to be able to account for every step in the lifecycle of your cannabis plants and be able to provide this information to regulatory agencies at a moment’s notice.
Adding to the complexity of tracking the plant, you’ll need tracking for each employee who works with the plant. These seemingly minor details can derail the best intentions, so demonstrating success surrounding mandated quality assurance testing at key points in the plants’ development will get the attention of would-be investors.
Multiple Jurisdictions for Added Complexity
Compliance is even harder to achieve due to the multiple bodies which have jurisdiction. Local, state, and federal agencies all jockey for partial control of regulatory measures placed upon your cannabusiness.
Some of the federal agencies involved in the regulation of legal cannabis plants include, but are not limited to:
United States Department of Justice
Environmental Protection Agency
Internal Revenue Service
Each state in the U.S. has its own regulatory body for cannabis operations. Examples include:
Department of Public Health
Department of Food and Agriculture
Department of Fish and Wildlife
Department of Pesticide Regulation
Alaska Marijuana Control Board
California Bureau of Cannabis Control
Colorado Department of Revenue Enforcement Division Marijuana Enforcement
Illinois Department of Financial and Professional Regulation, Cannabis Regulation
Maryland Medical Cannabis Commission
Massachusetts Cannabis Control Commission
Michigan Department of Licensing and Regulatory Affairs Bureau of Marijuana Regulation
Nevada Department of Taxation
Oregon Liquor Control Commission
Washington State Liquor and Cannabis Board
The full list of regulatory bodies is much longer. Compliance concerns are not exclusive to this industry, but as a cannabis operator, you face a tremendous number of regulatory bodies and each of these agencies has specific requirements to adhere to in order to stay compliant and stay in business.
As cannabis legalization becomes more widespread, each jurisdiction develops its own guidelines surrounding cannabis, from seed to sale. Unfortunately, this often creates confusion and leaves cannabis compliance open to interpretations. Without the systems in place to track and document multiple aspects of the cannabis industry, you’re at risk for considerable fines for non-compliance.
How to Present Your Cannabusiness
If you’re seeking capital from cannabis investors, understand that building a cannabusiness for compliance and scalability is nearly impossible without purpose-built technology. To that end, cannabis operations software is an invaluable platform for your cannabusiness when looking to attract investors.
Beyond your core business functions, investors consider the systems in place which support your cannabusiness. By planning ahead and incorporating a cannabis operations solution before you seek outside funding, you’re able to enjoy the fruits of efficiency, but you’re also able to prove it.
Cannabis operations software features tools for inventory tracking, asset management, and personnel scheduling and management, which means that the regulatory guidelines with which a cannabusiness must remain compliant are areas intrinsically handled by the platform. These systems excel at tracking inventory and allocating resources while maintaining clear audit trails, which is extremely important if a regulatory agency knocks on your door.
Cannabis operations software gives you and potential investors a unified view of your entire operation by bringing all operational data under the same umbrella, standardizing the data reporting and making it available for easy cross-referencing. By collecting all data into a single pipeline, a best-in-class solution gives everyone in the process the tools and insights necessary to make the right decision.
Vice President of ERP Sales, Frank Nisemboum,is a trusted advisor at c2b teknologies who has guided organizations of all sizes enabling them to establish a technology presence and expand their business through technology. His proven ability to analyze the current and future plans of a company and work with team members to subsequently bring technology solutions to the organization result in improved processes and controls that assure continued growth and profitability.
Frank has worked in the ERP and CRM software selection, sales and consulting industry for almost 25 years. His strong ability to understand, interpret and match the needs of an organization to the right solution make him an asset to all of his clients.
c2b teknologies integration and engineering experts have partnered with leading cannabis industry experts to develop a software solution that provides a complete cannabis operations system. The best-in-class solution not only handles tracking of seed-to-sale activities but encompasses your entire cannabis operations with compliance needs handles along the way. Our passion for solving problems drives us to deliver innovative solutions for everyone we work with. Visit c2btek.com for more information.
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The vaping crisis was first reported in June 2019. In October 2019, the U.S. Centers for Disease Control and Prevention (CDC) coined a new medical term describing the cases of severe pulmonary disease that have occurred among e-cigarette and vape users, E-Cigarette and Vaping Associated Lung Injury, or EVALI. EVALI’s primary cause was determined by the CDC to be vitamin E acetate contamination, mostly in illicit market vaping products, although research into this condition continues.
BriAnne Ramsay is the CEO of 
Karen Mayberry is the Marketing Director and Co-Founder at 
With April 2020 marking a full year that I fully transitioned to working in the cannabis industry, it’s amazing to reflect on the past twelve months and the journey that brought me here. This time last year I decided to leave my job as an investment advisor for one of the largest banks in the country to turn full-time as a patient counselor at a medical dispensary in Maryland. I had started out there part-time but after just a few months I was certain that I had found my true calling in cannabis. The more I learned about policy, the medical benefits of the plant, and the history of the war on drugs the more I knew that I wanted to make a positive impact and to help shape the future of the industry. 
With our Cannabis Business Summit taking place just weeks after I started at NCIA in July of last year, I was able to jump in feet first. Since then I’ve had the opportunity to interact with thousands of cannabis business owners and employees from every sector of the industry learning about their goals, success stories, and the challenges that they face. I’ve had the opportunity to see our Government Relations and Policy teams in action in Washington and interact with members of Congress. Nothing was more exciting than having a front-row seat as we watched the SAFE Banking Act, the first piece of stand-alone cannabis legislation pass in the House of Representatives, and knowing that I had worked alongside the team that made it happen! 
I remember hiring Michelle Rutter as my coordinator (who has been by my side for almost six amazing years). I remember moving into our first office (and not having to do business at Starbucks any more!). 
I grew up in rural King George County, Virginia, where I lived until I went to college. Let me just say: if you had asked me in high school where I saw my career going, I would not have guessed the cannabis industry! But, it turns out life had other plans for me. 
2019 National Law Journal “Finance, Banking, & Capital Markets Trailblazer” award winner, Steve Schain chairs global cannabis law firm Hoban Law Group’s PA and New Jersey practice and chairs its Financial Services Group. With 17 offices and 52 lawyers, 
Jacob Carlson is the Co-Founder and CEO of 
It’s funny how things just happen… one day, like any normal day, I was working the lunch shift at a restaurant called Carolina Ale House in Columbia, South Carolina. At first, I was worried about how much I would make in tips that day, as anyone with experience in the service industry can relate to, but then I started chatting with one of my tables… small talk, really. I told them how I was a sophomore at the University of South Carolina studying journalism and mass communications with a focus in public relations and a minor in women and gender studies. One man asked, “Well what do you want to do after college?” A question I thought about often but never had an answer to. He handed me his business card and asked if I was interested in politics. A few days later, I reached out, interviewed with the firm partners, and successfully scored the internship. 
Faai Steuer is VP of marketing at Cova Software, the fastest-growing cannabis retail POS in North America. An entrepreneur at heart, she has a passion for growing startups and building brands. With 20 years of marketing experience in CPG and retail tech, she lends her knowledge and best practices to help cannabis entrepreneurs in the U.S. and Canada open their first store and grow their business through vital thought leader content. 
Johnathan McFarlane is the Director of Strategy at Hybrid Marketing Co. 
