Member Blog: Borrowing for Cannabis – What You Need to Know
by Cheryl Dearborne, Director of Marketing and Financial Services at Lilogy
Now that cannabis is legal either medically or recreationally in 33 states, and hemp/CBD is federally legal, the cannabis industry is operating with high profit margins, and in order to scale and grow, cannabis companies require capital and financial services on par with any industry. However, the fight between cannabis progressive state laws and regressive federal laws lend to an unstable financial market for these budding companies.
Tax code 280E is a prime example of how cannabis merchants are playing on an uneven field. This tax code disallows cannabis companies to write-off business expenditures because cannabis (THC) is still considered a Schedule I controlled substance, thus creating smaller profit margins. The upside to that kind of disability from an investor’s point of view is that companies netting positively look particularly strong as they are doing so without the same financial privileges as most companies looking for capital. The same can be said for companies that are barely in the black, as they also are staying in operation sans privileges.
However, due to regulations like 280E and the uncertainty behind the federal government’s stance on cannabis, access to capital can seem impossible. Let’s look at some educational tools to help you obtain access to that capital if and when you need it.
Start-up with a solid team
The cannabis industry today can feel over-saturated because business resources are scarce, leaving millions of interesting companies in the lurch for lack of funding. Therefore, start-ups can feel far removed from the ability to access capital. As we mentioned earlier, capital is necessary to scale and grow, and once potential funding is sourced, there are a few measures that can be taken to place your company as a top priority for funding.
One such measure is building a solid team with industry (or position-relative) experience that proves your company has the ability to scale with the collective experience and success records of the executives attached. If any of your owners have a profitable company, it is always a possibility to use that company to guarantee your loan. We will address this further in the assets/collateral section below.
Have clear financial needs and a plan for profit
The companies most qualifying for financing have projected income and a clear plan for obtaining those financial goals for at least 2-3 years out from the current business year. What would be most advantageous is if you can show how the money you borrow would work into your projected financing.
For instance: Let’s say you want to borrow $1MM to purchase enough land to plant and harvest hemp and produce up to 30,000 lbs of biomass. Once on the market, you can project that you would make $1.5-2MM the following year once you put your product on the market (isolates, distillates etc).
The golden facts about this deal are that the borrower in question presumably has seeds, an equipped lab to produce the biomass, etc. and relationships/contracts with distributors that plan to purchase more inventory. Inventory, biomass, equipment: these purchases and obtainable results are also assets, and assets are most valuable in the borrowing process.
Keep collateral in mind and leverage what you have
There are several options to obtain funding if you have collateral in your business. Lenders will consider equipment, real estate and certain types of transferable inventory to reach your funding goals. Before you begin shopping, take a full account of the assets you possess and consider an asset(collateral)-backed loan.
Real Estate is the best collateral to accessing the max-funding for your qualifications If you have equity in any real estate (non-primary, if residential), you may qualify for a cashout-refi on your property or a collateralized business loan. The more equity the better. If you need $500k and would only qualify for $40k based on your business annual income (10-20% of your annual), owning over $500k in equity on your property would qualify you for a loan amount worth the value of the submitted property or group of properties.
If you are looking to purchase equipment or own equipment in which you have considerable equity, you may qualify for an equipment loan. Lenders are willing to lend specifically to the amount of the equipment you’d like to purchase, or refinance equipment you already own and have considerable equity in ($50k and up).
Inventory is valuable in the cannabis industry because the inventory itself is very valuable. Biomass can be used as collateral as long as there is a secondary market to liquidate the assets in case of a default. Some investors and lenders will even consider certain licenses in a collateral package.
The most important advice to note is that investors and lenders love assets. The more hard-assets on your balance sheet, the better. If your investors and lenders know their money will be spent on tangible, recoverable items, you will have a higher chance of securing funding.
Documents
Keeping and providing proper documentation of your business and its finances is the most important part of the process. Depending upon loan amount requested, your required documents will vary. It is worth it to prepare the following documents for submission to your lender of choice:
Lender Application(separate applications may be requested for real estate or equipment lending options)
6-12 Months of Bank Statements and Merchant Processing Statements
1-3 Years of Business Financials including Tax Returns, Profit & Loss, and Balance Sheet, and Accounts Receivables Reports
1-3 Years of Personal Financials including a Personal Financial Statement and Personal Tax Returns
A recent tri-merge credit report for all Principals
Business Debt Schedule including any short-term or long-term debt
An Organizational Chart that explains your business, verticals and any relationships between your legal entity and any subsequent companies.
Real Estate Owned Schedule (applicable if you have real estate to offer as collateral)
Equipment Owned Schedule (applicable if you have equipment to offer as collateral)
Drivers License and Voided Check (no matter what lending options you choose)
Documentation or Information on Inventory (applicable if you are considering inventory for collateral)
If cannabis related, Cannabis license information, if applicable
Time to Fund
In my experience, I’ve seen a million-dollar, short-term business loan deal close within a day of applying and I’ve seen real estate deals close after 3 grueling months of work for both the lender and the borrower. The timing will depend on how quickly you submit all documents requested among other loan-specific factors. Be prepared for potential site-inspections, bank verification, conference calls with investors, appraisals and other unique requests based on the due diligence necessary for your file. I’ve stated before in previous blogsand I will say it here for the NCIA community, try not to borrow in a pinch. If you need a large investment in a day or a week, please don’t be discouraged, your potential lender will hustle for your company, but have some patience and give yourself at least a week to lock in a term sheet, and at least 30 days to close on any loan besides unsecured short-term business financing.
I hope this is an encouraging and helpful article that will bring you closer to applying for funding. If you’re not sure if you’ll qualify, always reach out the funding specialist of your choice or several specialists from several companies to find a lender you trust to work efficiently and honestly on your unique opportunity. Don’t forget to rally for SAFE bankingso that this entire process will be easier and accessible to many more companies large and small within this amazing industry.
Lilogy
Cheryl Dearborne is the Director of Marketing and Financial Services for credit-investment firm, Lilogy in New York City. Her time at Lilogy has seeded a deep passion for educating borrowers in an effort to increase borrower eligibility and credit-worthiness throughout the American community of small business owners, especially so in Cannabis as merchants within the industry have substantial obstacles stacked against them until Federal Laws offer equitable protection and benefits.
NCIA Accepting Applications For 2020-22 Board of Directors Term
NCIA is accepting applications for eligible candidates to apply for its board of directors now through Friday, September 27, 2019.
The National Cannabis Industry Association is a nonprofit organization run for and by its membership, so we hope you’ll consider this opportunity to apply for a seat on the NCIA Board.
Serving on NCIA’s Board of Directors is no small task. Board members are responsible for overseeing the strategic direction of the largest and most influential cannabis industry organization in the country. Board Members are also responsible for building membership, fundraising, and ensuring that NCIA continues to be the strongest force advocating for the fair and equal treatment of the industry on Capitol Hill.
To ensure that the board makeup best reflects our membership, NCIA no longer requires board candidates to be Sustaining Members; all current NCIA members, at any level, are eligible to apply for a seat on the board. NCIA members who are interested and qualified to serve on our board are encouraged to submit an application for review by our nominating committee before the September 27 deadline. Candidates may apply directly for a board position during the open application process. The application form asks for information about the candidate’s professional background, unique talents, skills, and viewpoints, and ability to contribute or raise financial resources for NCIA.
Who Qualifies To Run For A Board Position?
To be considered for a seat on the board, a candidate must be a fiduciary (e.g. owner, president, CEO) of a current dues-paying Member business at any level of membership and must submit an application online by September 27.
What Are The Requirements For An NCIA Board Member?
Board members serve two-year terms and are responsible for overseeing the association’s overall strategy and budget, assist in the development of strategic relationships, and as ambassadors of NCIA, they represent nearly 2,000 member businesses. In general, the NCIA board meets in person twice and conducts 2-3 video conferences per year.
What’s New About This Year’s Process For Nominations?
The new process allows any fiduciary (e.g. owner, president CEO) of a member business to apply to serve a two-year term on the Board of Directors.
The selection process will now be overseen by a Nominations Committee and a slate of candidates will be chosen. Candidates not chosen during the selection process may seek an independent nomination to go before a vote of the NCIA membership.
How Are The Board Positions Selected?
Once the application period closes, NCIA’s nominating committee will convene to carefully review and score all applications. The committee will ultimately select a slate of nominees to fill eight available board seats that are best suited to bring additional talent, resources, and diversity to our growing organization, based on their qualifications. Our nominating committee will be comprised of the chairs of our 13 member committees as well as a select number of current board members whose terms are not expiring this year.
NCIA Members will then be notified of the slate and provided instructions for obtaining an independent nomination. Independent candidates must get the signatures (electronic) of 5% of the membership in order to qualify for the ballot.
If no qualified independent candidates are received by November 27, the slate of nominees recommended by the Board of Directors shall be declared members of the Board of Directors and shall commence their term in January 2020. If one or more qualified independent candidates qualify, all candidates will be presented to the membership for an election which will take place during the month of December.
Watch The Webinar: Cannabis Extractions – Thoughts And Considerations
Learn more about cannabis extraction best practices, techniques, and methods in this webinar recording. Hear from speakers Dan Gustafik, President at Hybrid Tech, and Gene Galyuk, Chief Development Officer at Capna Systems.
Member Blog: What The Cannabis Market Can Learn From The Energy Sector About Overcoming Market Complexity
by Mike Elliott, Business Development Executive at DCM
In an industry where change is a constant, cannabis companies face big challenges when it comes to brand-building, communications, and bringing products to market. The sector’s complexity is only increasing, which is compounded by its continual evolution, along with tight, varied, fluctuating regulations, and in some cases, less-than-informed consumers.
While the path forward may seem uncharted, in fact, similar market challenges exist in other verticals. With the right strategies and tools, these hurdles—including rigid regulatory conditions—can be overcome. If you’re looking for a roadmap for success, look no further than the U.S. energy sector – specifically, utilities.
The recent shift toward deregulated electric and gas markets has created an environment strikingly similar to that of cannabis. Both sectors grapple with strict, unpredictable regulatory governance. Both must comply with state-by-state variances and prohibitive marketing. And both face the challenge of communicating with customers who are often unfamiliar with the sector’s legislation and production processes.
By gaining an understanding of these obstacles, cannabis operators can improve their own market and regulatory navigation. Following are a few key lessons learned from energy.
For both energy suppliers and cannabis providers, regulation and compliance are determined at the state level. State-by-state laws vary widely and become increasingly complex when factoring in additional local and municipal regulations—not to mention continual review and change. This complexity has a direct impact on communications and brand management. Rules on communication and packaging—including, for cannabis, dosage—can diverge greatly and shift quickly. And there are few signs of this framework getting simpler.
Energy suppliers have addressed this complexity through variable, highly responsive communication platforms that can—very quickly and at scale—accommodate unique market requirements.
For cannabis companies, similar success depends on razor-sharp management, including automation of intensive, often spreadsheet-based processes that are manually maintained and prone to error. Robust, technology-driven platforms can now deliver a wide array of materials efficiently and accurately across different markets, all while ensuring airtight compliance with each market’s specific regulations.
New opportunities call for a fast, location-specific response
Both energy and cannabis businesses must be agile and flexible when responding to new market opportunities. In adapting to fluctuating, state-by-state rules surrounding contract terms and conditions, energy providers have learned the hard way how inefficiency and error can delay market entry and reduce sales potential.
Faced with similar circumstances, cannabis producers need the support of automated, location-specific marketing – technology that efficiently allows for customized, regional messaging across multiple markets and channels while ensuring locked-down branding and regulatory compliance.
Perception is everything when it comes to reaching consumers
With deregulation, utility companies realized that many consumers were uninformed regarding the legislative changes and were unaware of product availability and their own ability to shop around. Educating consumers was key – and communicating to them a value proposition that would distinguish each provider’s offering from that of the competition.
While cannabis is not entirely unfamiliar to many consumers, the dialogue around legalization and products remains similarly dogged by a lack of information and general misunderstanding. Cannabis companies must now shift those perceptions and educate potential customers on product safety and use. Producers must look at developing innovative communications supported by tools like automation, multi-channel communications management, and 1:1 marketing. These can help target, personalize, and monitor communications to better connect with consumers.
With little room to communicate, companies need to get creative
Utility companies are highly restricted in not only how they can make changes to billing and service charges, but also how they can market to consumers. The scenario is the same for cannabis companies, though regulations are even more complex and restrictive, with federal prohibition blocking most traditional means of advertising, including social and digital channels.
Cannabis companies can combat these restrictions with genuinely creative thinking backed by a thorough understanding of the rules. That means combining market knowledge with creative expertise in a way that skillfully complies with regulations without breaking them. At the same time, creativity and customization cannot hinder efficiency. The right tools must be in place to make sure everything works together – for example, a platform that lets users customize branded collateral for different segments and channels, allowing for both efficiency and creativity – consistency and customization.
The bottom line: the stakes are too high for non-compliance
Fines for non-compliance in the energy sector can reach into the millions. Likewise, stiff penalties are levied for non-compliance in the cannabis industry. The financial implications can be devastating for cannabis producers – even more so if it comes to relabeling or pulling product from store shelves. To compound the risk, publicized mishaps can deliver a serious blow to consumer confidence for brands trying to win consumer trust. With that in mind, navigating the highly regulated cannabis landscape takes careful planning, constant oversight, and the ability to stay ahead of evolving regulatory requirements.While the opportunity is promising, it requires tools, technologies, and strategies that streamline processes, mitigate risk, and increase speed-to-market. Charting your course depends on careful planning, trusted advice, and experienced partners – along with the ability to learn from those who have been there and done that.
Mike Elliott is a Business Development Executive specializing in cannabis at DCM
From brand strategy and consumer insights to dynamic labeling and POS solutions, DCM helps build, protect, and bring to market North America’s largest cannabis brands. Learn more at http://www.datacm.com.
Member Blog: Compensation in Cannabis – Is The Data Actionable Or Just Interesting?
By Dan Walter, FutureSense LLC
Everyone wants to know how much to pay people (or how much to get paid.) In a world of instantly accessible google searches, it can be maddening that pay data for the cannabis industry is hard to find. Even when you locate information, it probably isn’t compelling (or legally compliant). What’s the problem and how do we fix it?
Here are the most basic rules:
FTC regulations require the information provided by survey participants (companies) to be based on data more than three months old. Actionable survey data can only be supplied for positions with more than five respondents. No individual participant’s data can represent more than 25 percent on a weighted basis of the reported statistic.
Any data that does not meet these minimum requirements is interesting but is unlikely to provide a solid foundation (or a legal defense). Data collected directly from employees or talent searches are almost always non-compliant.
Actionable survey data will also give you ranges for each position. At the very least, usable survey data will provide statistically relevant minimums, midpoints, and maximums for each position. More comprehensive data will usually provide quartiles or percentiles for each job. To be blunt. Median numbers are the playground of thin data. If all you see is a median, you are probably looking at data that isn’t actionable. The median may be interesting, but it isn’t much more than that.
Many providers in the cannabis industry have spent their time and money trying to help companies with better pay data. Some of the data is accurate, and some are not. Some of the data meets legal requirements, and some are just fun to have. How should a company decide which data is actionable and which is only interesting? The paragraphs above provide some insight into assessing the information out there. NCIA and FutureSense are working diligently to augment that information with a data set that respects the breadth and depth of the cannabis industry (truly an industry of industries).
This is what makes your participation in the 2019 NCIA Cannabis Compensation Study, powered by FutureSense, so important. We have executed pay surveys for decades. Our goal is to provide actionable data for every position in the cannabis industry. Your participation is crucial! Participation is simple, FutureSense does most of the work. Also, many of the industry HR, Recruiting, and Accounting service providers are already set up to submit your data quickly.
Contact us today, or contact your service provider and ask them to collaborate for you! We will update this post as new providers get on board.
Committee Blog: The Employee Onboarding Process
by NCIA’s Human Resources Committee Kara Bradford of Viridian Staffing, Kerry Arnold of Canndescent, Heidi Quan of Murchison & Cumming LLP, Nichole McIntyre of Urban-Gro, Michelle Whitmore of H2 Talent, and Mark Hackett of Emerge Law Group
You’ve found, interviewed, hired the right person for a position in your business, and they have just accepted your job offer. Congratulations! Now what? In the second part of our three-part series, the HR Committee shares insights on the Onboarding of employees. Onboarding new employees can be critical to ensuring happy and productive workers that understand the culture and expectations of your company. Having an organized procedure for bringing on a new hire is crucial for both the company and the new employee. Your company should be as prepared and ready as the new employee is expected to be for their first day. This can be a missed opportunity to make a great impression on your new employee.
In order to help your company with the onboarding process, a new hire checklist can be utilized to help ensure that you are covering all the necessary areas for a successful and smooth entry into your workforce. We have prepared two checklists for the onboard process. One is more administrative in nature while the other is designed to assist managers to help smoothly integrate and transition the new employee into your company. In some companies, a Manager may need to perform the tasks on both checklists if the company does not have an HR Manager.
HR Manager Checklist
Starting with the HR Manager Checklist, it’s best to make sure that you’ve received a signed offer letter and/or employment agreement prior to the start date being determined. Some companies also prefer not to set a start date until the background check process has completed. Once this is completed, there are a series of steps to take prior to the new employee starting. You may need to order hardware/software, cultivation tools/equipment, etc. On their first day, it’s a best practice to have the worker complete all paperwork, including any W-4 documentation/I-9, etc, prior to starting on the job. We’ve also included instructions for I-9 completion.
Data has shown that employees don’t leave companies, they often leave managers; so provide your managers with the resources they need in order to inspire more confidence in the new employee for their manager. If the Manager isn’t the individual filling out the paperwork with the employee, have the manager greet the employee as soon as necessary paperwork is completed. Having a manager focus their attention on a new employee as much as possible during that first day will help to solidify the new employee’s sense of belonging to the organization.
Employee Onboarding Checklist For Managers
The manager should take time to introduce the new employee to all co-workers and other organizational stakeholders they may interact with while helping to familiarize them with the facility. The manager should then spend time setting/reiterating expectations of what the position entails and conveying any goals/metrics that the employee is required to meet. Finally, the manager should spend time training the new employee and setting them up for success, or delegating this to the appropriate subject matter expert on the team to do this.
We often have companies tell us they are struggling to retain their employees. By providing an exceptional onboarding experience from the very first day, this will help the new employee to realize you value them and the talents they are bringing to your company, thus helping to feel welcomed and continue their contributions longer to your firm.
In our next HR Committee Blog Post, we’ll provide a checklist with recommendations on how to handle Terminations.
Member Blog: Cannabis Retailers – Help Advance Cannabis Research
by Lisa Conine, Community Outreach Coordinator at Om of Medicine
Medical cannabis retailers are in the unique position of having large amounts of data available to them in the form of medical cannabis patients. Four years ago, Om of Medicine partnered with researchers at the University of Michigan to develop an IRB-approved survey study examining medical cannabis patients and their opioid use. We conducted a survey of 244 medical cannabis patients in Michigan with chronic pain for 3 months. The goal was to collect data to examine if using medical cannabis for chronic pain affected one’s opioid consumption. We saw testimonial evidence of this every day in our consultation rooms and we wanted to quantify that evidence to elevate our patient’s voices and bring them to decision-makers.
The results of that study displayed a 64% reduction in opioid use and a 45% increase in quality of life. The Journal of Pain published this research in their 2016 edition and since, the findings have been used as a tool for engaging with medical professionals and elected officials. Additionally, the results have been cited in publications such as the 2017 edition for the National Academies of Sciences, Engineering, and Medicine’s report: Health Effects of Cannabis and Cannabinoids. Soon after, the results were sited in Representative Earl Blumenauer’s Physicians Guide to Cannabis-Assisted Opioid Reduction. Blumenauer’s office took the initiative to put this document together and circulate it to his colleagues throughout Congress. These findings are intended to be a tool for advancing our advocacy for this movement and the patients we serve. You can find the study here and you are encouraged to use these findings in your lobbying and education efforts!
Currently, Om of Medicine is continually working to increase research around medical cannabis patient’s experiences. We now have launched our third IRB-approved study examining patient’s daily regimens, their knowledge on cannabis, and their relationship to their medical health care team. We are calling on the cannabis industry to help us increase our patient data set by circulating the IRB-approved survey to any networks you have with medical cannabis patients.
The survey is quick to complete and is completely confidential. The published work is intended to be used as a tool for all working in the industry and movement to use it as a piece for engagement with policymakers and doctors.
If you have any questions, you can reach me at lisa@omofmedicine.org. Sending out sincere gratitude to NCIA and participants who take this survey to aid in the advancement of understanding this plant and its revolutionary potential.
Lisa Conine is the Community Outreach Coordinator for the Om of Medicine, a medical cannabis dispensary in downtown Ann Arbor. Lisa works to prioritize relationships with Om’s local community non-profits, businesses, medical professionals, and elected officials. Outreach at Om is based in social justice and forwarding the cannabis movement by uplifting the work of partnering community organizations, providing education on cannabis to the public, and engaging politically, on all levels, to create sensible policy. Lisa is also a member of the newly formed NCIA Retail Committee.
WEBINAR: METRC – How to Stay Ahead & Maximize Efficiency
Everyone has METRC on the mind. Find out how METRC will impact your retail operations, what you’ll need to consider when it comes to compliance reporting, and how to maximize efficiencies to ensure being METRC certified doesn’t cost you precious time better spent running your business. Watch the webinar recording here.
SPEAKERS:
Jocelyn Sheltraw
Director of Regional Strategy, Headset
Brett C. Hartmann-Payan
Compliance Officer, Dosist
Anne Forkutza
VP Strategic Partnerships, Cova
Member Blog: New Data Reveals Market Share Changes for Cannabis POS Software Providers
by Ed Keating, Co-founder and Chief Data Officer of Cannabiz Media
Point of sale software providers are a critical part of the cannabis economy, and as the industry grows, a shift is happening.
In the first half of 2019, the dominant POS providers of 2018 held onto their positions as market leaders. Others merged or were acquired, and new providers launched. Even big brands like NCR, NetSuite, and SalesForce entered the market joining Quicken and Square in an attempt to gain a piece of what they hope will be a lucrative market.
Cannabiz Media conducted a research study to identify POS software providers and market shares in mid-2019 and compared the data to findings compiled in a similar year-end 2018 report. The full report is available for free download here, and the results may surprise you.
Key Findings for Mid-Year 2019:
There are 68 unique POS software providers in the U.S. cannabis industry (up 58% from 43 in December 2018).
BioTrack is the market share leader overall.
BioTrack is the market share leader in states with medical-only cannabis programs.
Green Bits is the market share leader in states with adult-use cannabis programs.
Green Bits is the market share leader in METRC states.
Cannabis POS Market Share Shifts in the First Half of 2019
In mid-2019, the top five POS providers account for 68% of the overall cannabis market, and the top 10 account for 84% of the market. Part of this change can be attributed to active California licenses expiring and revisions to the survey methodology.
Compare those numbers to how things looked at year-end 2018 when the top 5 POS providers made up 80% of market share, and the top 10 were responsible for 93% of the market.
In addition, the number of POS vendors servicing cannabis businesses increased by 58% from 43 in December 2018 to 68 by July 2019.
In other words, while the market is still highly concentrated, the market leaders have given up some market share, and new companies continue to enter the space.
The same shifts are happening in medical-only and adult-use states.
In mid-2019, 34 POS providers were active in medical-only states (up from 15 in December 2018), and 53 were active in adult-use states (up from 40 in December 2018).
At year-end 2018, the top five POS vendors accounted for 94% of the market in medical-only states, but in July 2019, they only account for 70.4% of the market.
In adult-use states, the top five vendors accounted for 78% of the market in December 2018 but only account for 71% of the market in mid-2019.
Top Cannabis POS Software Providers in Mid-2019
According to Cannabiz Media’s research, the top five cannabis POS software providers overall in mid-2019 are:
BioTrack
Green Bits
Flowhub
MJ Freeway
Indica Online
In medical-only states, the top POS software providers in mid-2019 are:
BioTrack
MJ Freeway
Indica Online
Flowhub
COVA
In adult-use states, the market share leaders in mid-2019 are:
Green Bits
BioTrack
Flowhub
Adilas
MMJ Menu
In METRC states, the top five POS software providers in mid-2019 are:
Green Bits
BioTrack
Flowhub
Adilas
MJ Freeway
Key Takeaways
While the POS market leaders have lost some market share in recent months, the biggest battle appears to be among the top two companies, which have approximately twice as much market share as the company ranked in third place in the overall market as well as in adult-use states and METRC states. In the meantime, the other 66 POS providers that service the cannabis industry are slowly chipping away at that share.
Get the Free Report with Detailed Data, Charts, and Commentary
Visit https://cannabiz.media/pos-report-2/ to download Cannabiz Media’s complete “Point of Sale Software in the Cannabis Industry: 2019 Mid-Year Report” for free to view all of the detailed market share data, the full list of POS vendors in the cannabis industry, 2018 vs. 2019 comparisons, and specific data about POS providers in the California and Oklahoma markets.
Ed Keating is a co-founder of Cannabiz Media and oversees our data research and government relations efforts. He has spent his whole career working with and advising information companies in the compliance space. Ed has overseen complex multijurisdictional product lines in the securities, corporate, UCC, safety, environmental and human resource markets and focuses on workflow products. Ed has spent the last twenty five years in the information industry. During that time he has worked for both startup and established information companies where he has led marketing, product management and sales organizations. These companies include Wolters Kluwer/Commerce Clearing House, CT Corporation, EDGAR Online and Business & Legal Reports. At Cannabiz Media, Ed enjoys the challenge of working with regulators across the country as he and his team gather corporate, financial, and license information to track the people, products and businesses in the cannabis economy. Ed graduated from Hamilton College and received his MBA from the Kellogg School at Northwestern University. He has been active with the Software & Information Industry Association for his whole career and managed the Content Division for six years. He’s was recently a Trustee at the Country School in Madison CT and a Little League Coach for seven years.
Committee Podcast: The Emerging National Hemp Market
In this interview, industry specialist and NCIA Infused Products Committee member Ashley Hanson of Humboldt Green Light Kitchen speaks with Mike Perry, President and founder of PNX Botanicals, about the emerging national hemp market. Ashley and Mike discuss the relationship between cannabis and hemp products, the effects of regulation on small and medium-sized businesses, and testing standards for hemp CBD products. With state and federal governments rapidly developing new regulations, the conversation focuses especially on improving the conversation surrounding dosing, labeling, and product quality standards.
NCIA’s Infused Products Committee focuses on edible and topical products, reviewing existing business practices and state regulations. Regulation of these products is the IPC’s initial key focus, but the committee’s purpose is to ensure the infused product sector is helping shape its destiny, rather than being driven by differing jurisdictional regulations. The IPC is also working with the Council on Responsible Cannabis Regulation (CRCR) to develop standardized regulations for legislators and regulators to adopt as their states legalize the industry.
NCIA-PAC: Elect And Keep Our Champions On Capitol Hill
by Maddy Grant, NCIA Government Relations Manager
How does NCIA keep the momentum going on Capitol Hill? In the 116th Congress we’ve seen progress and support on cannabis issues unlike any Congress before – this is a historic time for cannabis reform!
The Secure and Fair Enforcement (SAFE) Banking Act of 2019, which is now up to 206 cosponsors in the U.S. House of Representatives, up from 95 cosponsors in the 115th Congress, is expected to have a House vote at some point in in July.
The McClintock-Blumenauer-Norton amendment, which would protect ALL cannabis businesses from federal interference, passed the House with a vote of 267-165.
Our very own NCIA member, Dana Chaves, testified in front of the Small Business House Committee and expressed the urgency for our cannabis businesses to get access to financial institutions. These are just a few of the monumental successes we have reached this year – and it’s only June. We see the momentum growing and we need to keep the pressure on.
So what does this have to do with the NCIA-PAC?
Through our NCIA-PAC we are able to fiscally aid supporters of the cannabis industry, not only elected officials, but people running for congressional office. For example, leading up to the midterm election, the NCIA Government Relations team made sure we supported close races where cannabis-friendly candidates were running against cannabis opponents. One race I distinctly recall, Nevada’s third congressional district. Susie Lee, who is a supporter of cannabis, was running against incumbent Congressman Danny Tarkanian, an opponent of cannabis. Michael Correia, NCIA’s Director of Government Relations, and I met with Susie Lee in Las Vegas and we began to discuss how close her race had come and how every single PAC dollar would help her win. At that point, we contributed $1,000 of NCIA-PAC dollars to Susie Lee’s campaign and she beat incumbent Danny Tarkarnian. This is just one race where our contributions made a difference.
Congresswoman Susie Lee from Nevada has been a supporter of cannabis issues and with NCIA-PAC dollars she can continue to represent our industry on Capitol Hill.
This wasn’t the only race that was close in 2016. The NCIA-PAC supported and helped elect 45 cannabis champions to Congress, including 15 Democratic challengers who successfully unseated incumbents who opposed reforming our outdated federal marijuana laws. Many of these races were won on razor-thin margins, which proves how far this support goes to enact change on the Hill. The NCIA-PAC aided to grow our support on Capitol Hill while establishing good relationships and educating Members of Congress.
Freshman member, Congressman Gil Cisenors, has been supportive of cannabis issues on Capitol Hill.
Government Relations Director, Michael Correia, attending Congresswoman Dina Titus fundraiser. Thanks to NCIA-PAC dollars we could attend and thank the Congresswoman for all of her work.
At the 9th Annual Cannabis Industry Lobby Days in May, we had 21 Members of Congress attend our PAC fundraiser. Congressional members showed up and spoke to NCIA members about cannabis issues on Capitol Hill and how supporting their races are crucial to allow them to continue to fight for our issues. Over and over we heard from these members about the importance of getting the right people in office that will fight for what their constituents care about. The NCIA-PAC helps us do just this, and every single dollar helps. It is time to end marijuana prohibition and to hold our congressional leaders accountable to represent the will of their constituents. Help us keep our champions on Capitol Hill and continue to add more! Whether it’s $5 or $5,000, every single dollar counts.
Think about that number for a minute. Ten thousand. Just a handful of years ago, some cannabis conferences were struggling to attract 500 people.
This explosion in the cannabis industry has had a profound effect on our nation:
Tens of thousands of businesses have started – spurring economic growth and creating hundreds of thousands of jobs. According to Leafly, there are now more than 211,000 cannabis jobs across the United States. More than 64,000 of those jobs were added in 2018.
Legal cannabis is currently the greatest job-creation machine in America. The cannabis workforce increased 21% in 2017, gained another 44% in 2018, and is expected to grow another 20% in 2019. Those are record-setting numbers.
Real estate is another sector that is booming thanks to legal cannabis. A recent study led by a by a University of Mississippi economist concluded that legal retail cannabis in Colorado increased housing values. Researchers compared cities that permitted the sale of cannabis with those that did not and found that the availability of recreational cannabis in a given area created strong housing demand and higher increases in property values.
Clearly, legal cannabis is creating jobs, opportunities, and economic growth.
But there is a dark side to the cannabis numbers. According to the American Civil Liberties Union, arrests for cannabis possession account for over half of all drug arrests in the United States. In 2017, 659,700 were arrested in the U.S. for cannabis. Over 90% of those arrests were for simple possession. Moreover, 46.9% of people arrested for drug law violations are Black or Latino, despite making up just 31.5% of the U.S. population. Additionally, over 200,000 students have lost federal financial aid eligibility because of a drug conviction.
As a nation, we must ask ourselves, how does imprisoning someone or taking away their chance at receiving an education because they possessed a small amount of cannabis (or other drug), make our country better, stronger, or greater?
Since this blog is dedicated to numbers, I’ll leave you with this one: It takes 100,000 atoms to become visible to the human eye, and even at that amount, it is only about the width of a human hair.
But it takes far fewer people to make a difference in society. Our last presidential election was won by the candidate that received over 2 million fewer votes, but won the electoral college by having just a few more votes in some key states. Just 0.2 points or about 10,000 votes separated the candidates in Michigan. Only 0.7 points or about 22,000 votes made the difference in Wisconsin.
This is not a time for us in the cannabis industry to be complacent. We have won some hard-fought victories, but there is still much to do, many wrongs to right, and a lot of work ahead.
My hope is that everyone in this amazing industry will share the belief that while we have a lot to be thankful for, we still need to keep moving forward and progressively for a better future.
Get involved. Make your voice heard. And vote.
Enjoy the conference!
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.
Ten Reasons To Join Us At #CannaBizSummit In Ten Days
The 6th Annual Cannabis Business Summit & Expo begins in TEN DAYS! So we’re bringing you TEN reasons why you should make plans to join us:
Your Registration Dollars are Put to Work Most industry events are out to make a buck. But when you attend one of NCIA’s business events, the money you spend goes right back into advocacy for you, your business and the cannabis industry in general.
Conference Sessions Featuring Known Industry Leaders #CannaBizSummit brings in known names in the trade that are experts in their fields. Hear from those who have experienced the same issues as you and know how to deal with them. We spend weeks creating the highest quality agendas, with carefully curated speakers and industry hot topics so that you may walk away from our events with not only a refreshing take on the cannabis market but actionable tips and tricks for your business.
SOLD OUT Expo Hall NCIA events have the proven highest concentration of buyers and sellers of any other industry event, and exhibitors have been pre-qualified and are of the highest caliber. Network with your peers and explore the exhibit hall with more than 400+ exhibitors (all NCIA members) on our SOLD OUT expo floor!. Whether you’re looking for business solutions, extraction, distillation, or grow equipment – you’ll find it on the expo floor.
Full Day Workshops NCIA has gone above and beyond to create an inspiring three-day learning experience. Not only will you be able to hear from experts in a variety of fields during our core conference program, but you can enhance your experience with an intimate, classroom-like setting in one of our exclusive pre-conference workshops. Join us for Cannabis 101, Managing for Success, INCBA Regulatory Rounds, CannaVest Investor Forum or The HEMP Biz Conference.
Full Day and Half Day Tours #CannaBizSummit tours offer a fun, interactive experience and a first-hand look at some of the most prominent cannabis businesses in northern California. Tours include the Santa Cruz, East Bay and Legion of Bloom full day tours, as well as a morning and afternoon half day tour of San Jose. Register soon – some of our tours are close to selling out!
Thought-Provoking Keynote Speakers Don’t miss this lineup of heavy hitting industry pioneersas they take the stage to discuss everything from global expansion to athletics in these not-to-be missed opening sessions! We’ll be joined by Mike Lee, Executive Vice President & CFO from Canopy Growth Corporation, who will be sharing his unique outlook for the industry. Hear the Latest in Cannabis Research and The Impact on Athletes with Dr. Jefferey Chen, physician and researcher at The UCLA Cannabis Research Initiative. He’ll be joined by Anna Symonds (USA Rugby), Nate Jackson (NFL), Frank Shamrock (MMA, and Jim McAlpine (Creator of 420 Games) who will share their own experiences and benefits of using cannabis for recovery.
Additional Education on the Expo Floor in the Elevation Lounge If you’re looking for more education outside of our conference program, the Elevation Lounge in booth #1642 is where to find it. We have eleven, 20-minute educational sessions and the best part—they’re free to all attendees.
No Consumers – We’re All business Here #CannaBizSummit is a serious place to do business. We’ve heard repeatedly that if you are serious about meeting people in the industry that can help take your business to the next level, #CannaBizSummit is where you want to be. Unlike other events we’re not focused on consumers, it’s all about business to business relationships here.
Networking with Other Cannabis Professionals Join entrepreneurs, thought leaders, and policymakers to expand your influential industry network. Create meaningful connections with fellow cannabis peers.
Blues & Buds Celebration Join thousands of industry professionals and friends at the Blues & Buds celebrationfeaturing actor, musician and cannabis farmer, Jim Belushi and the Big Blu Soul Review! All are welcome, but you must RSVP to attend. Enjoy light appetizers, drinks and dancing with friends.
Register today and plan on gaining invaluable insights and best practices for both the novice and experienced cannabis business owner.
Partner Blog: Legal Education – The Cannabis Regulatory Rounds Presented by INCBA
The International Cannabis Bar Association (INCBA) is excited to present the fourth iteration of our in-person educational partnership with the National Cannabis Industry Association’s Cannabis Business Summit and Expo.
This year, INCBA is thrilled to showcase a full day set of educational sessions on July 22, 2019 in San Jose, California that sets the bar for legal education in the cannabis industry and offers 6.5+ credits of Continuing Legal Education (CLE) in select jurisdictions. Already renowned for presenting the highest-quality legal education in the legal cannabis, INCBA has continued to refine and enhance our in-person educational offerings, and we have something special in store for our attorneys at NCIA’s #CannaBizSummit this year.
Instead of focusing on substantive topic areas (like IP, finance, or real estate), we have decided to offer a special set of sessions focused on regulatory issues that face each business type that operates in this unique industry. Loosely based on license type, our educational sessions will focus on specific stops on the vertical stream of commerce, beginning with specific issues related to cultivators, moving through multi-state manufacturing and distribution, and then addressing to E-commerce. We will take a close look at the current bottleneck in many jurisdictions – testing laboratories – and at labor and workforce considerations that affect businesses across all the above license types. In short, we are giving you what you need to know to serve your clients in the cannabis industry no matter where their focus lies.
And, just to make sure you get those valuable nuggets of information, we have made sure that every panel features a regulator that can speak directly to the concerns that you must address when advising your client. INCBA has become known for featuring the top practitioners in the country on each of our panels, and now you get to watch them discuss their approach to regulation with the people in charge of enforcement.
In addition, INCBA is excited to present the most substantively and jurisdictionally diverse set of panels that we have ever featured. No more than two attorneys from any given state sit on a panel, which means that we will be covering topics that are relevant across state lines. And, because California’s regulatory system has come online this year, it serves as the perfect foil to compare and contrast differences in jurisdictions, failures and successes of regulatory structures, and the major pain points your clients face – no matter from what state they hail.
To make sure we end the day on the right note, and to ensure that you have the opportunity to create the lasting connections that will serve you throughout your practicing career, INCBA will be hosting one of our signature after-parties at the beautiful Mosaic Restaurant and Lounge at the Sheraton Hotel in downtown San Jose. After a long day of education, come to Mosaic to network with some of the best cannabis attorneys around. The party includes light bites and drinks, as well as Bocce ball and Giant Jenga. Find the panelists you enjoyed the most, see old friends, and make new ones to lay the foundation for a lifelong successful practice in this special industry.
As the first (and only) specialty bar association that exclusively serves the business needs of the cannabis industry globally, INCBA is the hub where cannabis industry lawyers come together to connect with each other, share information, and learn the tools necessary to further their clients’ interests in the legal cannabis industry. As Steve Shain of Hoban Law Group recently proclaimed – “It’s not whether you can afford to be here, it’s whether you can afford to not be here.”
WEBINAR: Streamlining Your Packaging Process and Innovating for the Future
Be sure to join us at NCIA’s 6th Annual Cannabis Business Summit & Expo in San Jose, California, on July 22-24, 2019 at the Wednesday afternoon panel session titled “Cannabis Packaging: Evaluating, Streamlining, & Innovating.” Presented by members of NCIA’s Packaging & Labeling Committee, this panel session will dive into key aspects of cannabis packaging that impact today’s businesses.
Video: Member Spotlight – Anresco Laboratories
In this month’s video spotlight, learn about how Anresco Laboratories went from an analytical lab serving the baking industry to getting involved in cannabis testing in 2015. At Anresco, they now conduct metals testing, microbiology, chromatography, HPLC, and are heavily involved with cannabis advocacy efforts!
Member Blog: Legal Cannabis in Illinois – Expanded Possibilities For All
Today, Governor Jim Pritzker of Illinois signed the historicHouse Bill 1438, The Cannabis Regulation and Tax Act, into law, ending prohibition for recreational cannabis usage across the state, and making it the 11th state where cannabis is legal. I, along with so many others in Illinois, and around the United States, am just as excited as the Governor.
“The state of Illinois just made history, legalizing adult-use cannabis with the most equity-centric approach in the nation. This will have a transformational impact on our state, creating opportunity in the communities that need it most and giving so many a second chance.” – Governor Pritzker, IL
This is a game-changer for the state of Illinois and its constituents. Public health, education, and tourism are just a few of the areas that are expected to emerge victoriously by being some of the beneficiaries of the $170 million dollars in expected tax revenue in early years.
But to me, what’s even more extraordinary is the fact that within IL’s legalization law is a visionary plan that will serve as inspiration to advance the nation’s social equity movement in this industry.
With the end of cannabis prohibition, we see the beginning of the end to the “war on drugs” as we know it, one that shrouded lower-income and traditionally Latinx and African-American communities in an unjust and unfair light.
The ACLU states that people in the United States use and sell marijuana at roughly the same rate regardless of their race, yet a black person is almost four times more likely than a white person to be arrested for marijuana possession nationwide. In addition, roughly 13,000 people were deported or separated from their communities and families in 2013 alone for drug-related offenses.
Even the word marijuana itself can be considered negative and racist, based on a longstanding theory that narcotics agents in the 1930s chose a word of Mexican-Spanish origin over the more scientific word cannabis when crafting drug laws, making it sound more sinister and associated with a certain community.
The equitable measures put into place in Illinois’ cannabis legalization law are unprecedented when it comes to making sure the end of cannabis prohibition will result in brighter days for the masses, not just a select few.
A FAIR SHOT FOR ALL
New processing and cultivation licenses will be issued in mid-2020, with growers from communities negatively impacted the most by cannabis prohibition getting priority within the application process.
A SECOND CHANCE
Up to 770,000 people in Illinoisqualify to have their marijuana convictions expunged from their criminal record, healing past wounds and providing access to new opportunities that weren’t available in the past because of past marijuana laws.
OPPORTUNITY FOR GROWTH
One quarter of cannabis taxes collected willfund a grant program that will invest in minority communities impacted most negatively by cannabis prohibition, driving cannabis business opportunities, by offering assistance and mentorship.
Even 2020 candidate Senator Kirsten Gillibrand shared her comprehensiveplan to legalize marijuana on a Federal level immediately if she becomes president. In that plan, social equity is also the primary focus on the path to legalization.
“The unfair enforcement of our current marijuana laws is a continuation of the institutional racism that has defined our criminal justice system for decades… We’re talking about entire lives, families, and communities being derailed: felony convictions make it much harder to get and keep jobs, access financial loans, exercise the right to vote, travel abroad, and receive social and housing benefits.” – Senator Kirsten Gillibrand
And just recently, Chicago-based Cresco Labs launched its Social Equity & Educational Department (SEED), an initiative aimed at promoting inclusion, equality and community engagement, through community outreach, educational support and incubators for veteran, minority and women-owned businesses.
“Our SEED initiative is designed to ensure that all members of our society have the skills, knowledge and opportunity to work in and own businesses in this industry….the SEED initiative consists of impactful programs and actionable solutions-based approaches that we believe will help make the cannabis industry a highly inclusive force for job creation.” – Charlie Bachtell, CEO, Cresco Lab
I also believe in a fair and equitable cannabis industry that unites as one to fix the damage done within certain communities as a direct result of cannabis prohibition. The National Cannabis Industry Association, along with theMinority Cannabis Business Association, are helping to shape laws and create a roadmap for local governments to address social equity issues right from the start of legalization.
“It is fitting that the Land of Lincoln is moving forward with such extensive measures to reverse the damage done to people of color and low-income communities by the government’s senseless war on cannabis consumers. We cannot continue to pursue legalization without considering restorative justice, and Illinois is definitely starting on the right foot in this regard,” said Aaron Smith, executive director of the National Cannabis Industry Association (NCIA).
And as further fuel to ignite the social equity movement,with the end of prohibition in sight, we’re also seeing exponential growth in all sectors of cannabis business. And with that growth comes a highly qualified talent boom in cannabis, with executives from all industries making the move to join and imagine an exciting new space together, from all perspectives.One exciting space that cannabis businesses can look to Corporate America for inspiration is within Corporate Social Responsibility programs.
Corporate Social Responsibility programs, or CSR, is a way for companies to conduct their business in a manner that is ethical, while taking their social, economic and environmental impact, along with the consideration of human rights, into account. It can be a win-win situation for all parties involved – through CSR programs, businesses can benefit society while boosting their own brands. Most have probably heard of Tom’s Shoes, and their popular “One for One” CSR program, which donates a pair of shoes for every pair bought. General Electrics donated over $38 million to community and education programs in 2016. Disney has a “VoluntEARs” program, which allows all of their employees to use a portion of their hours towards volunteer efforts.
With so many new brands coming into the market following legalization, it’s important that they find a way to stand apart and above the competition, while delivering a relevant brand experience. In order to do that successfully, brands need to stand for something, something that matters to people. And what we’re hearing from legislators and constituents alike is that social equity in the cannabis industry matters a lot. It’s a space for us, as responsible cannabis business owners paving a path forward, to come together and share not only the secrets of their success, but also to share the gains with the entire cannabis community, in order to lift everyone up – to right the wrongs of the failed war on drugs.
The possibilities are limitless, just like the new frontier of cannabis. I look forward to seeing how we all grow together.
Payal Shah is founder and CEO of the Cannabis Insight Collective. She’s spent the last two decades in strategic planning, working in leadership roles within global advertising agencies, on blue-chip clients including Proctor & Gamble, Microsoft, Walmart, Kelloggs, and Porsche.
Her experience is focused on understanding how cultural paradigm shifts and trends impact and influence people, their behaviors and brand choices. Her knowledge is grounded in creating and cultivating online panels, or Collectives, of all sizes and shapes, to address a variety of challenges for various clients. This background, along with a compassion and conviction for the cannabis industry, inspire her to be an advocate to drive the cannabis industry forward.
Cannabis Insight Collective is aliving, breathing online community of people across the United States, brought together by their connection to the cannabis industry. We exist to uncover cultural, category and consumer trends and insights within the category by tapping into our proprietary Collective, and working with people directly to answer questions that brands are struggling to answer.
At Cannabis Insight Collective, we are committed to supporting social equity in the cannabis market, and treating everyone fairly and respectively, through a number of Corporate Social Responsibility business initiatives:
The Cannabis Insight Collective panel will be representative of the entire United States population to ensure a representative voice is heard.
A percentage of CIC’s revenue will be donated to the advancement and mentorship of minority-owned cannabis businesses.
CIC will continue to advocate to establish new and existing laws that make sure the cannabis industry is fair and equitable.
We Made History: U.S. House votes to protect cannabis businesses!
Today, the House of Representatives voted in favor of an amendment to the Commerce, Justice, State (CJS) Appropriations Bill that prevents federal interference in state cannabis programs. The NCIA team is beyond excited that we’ve made this incredible progress to protect all state-legal cannabis businesses, including adult-use operators.
This was an historic vote, and is the farthest reaching action Congress has ever taken to reform outdated federal marijuana prohibition policies.
Protections for state medical cannabis programs have been included in the federal budget since 2014. The amendment passed today — introduced by Rep. Earl Blumenauer (D-OR), Rep. Tom McClintock (R-CA), and Del. Eleanor Holmes Norton (D-DC) — would, for the first time, extend those protections to states and territories where cannabis is legal for adults. An additional amendment offered by Rep. Blumenauer that was also attached to the bill would also prevent federal interference in tribal cannabis laws.
I’d be remiss if I didn’t take this opportunity to express gratitude for the nearly 2,000 NCIA members who made this victory possible by investing in our unparalleled lobbying team in Washington, D.C. Legislation like this doesn’t pass by itself — it’s a direct result of the forward-thinking members who support our work in D.C..
If your business is not yet a member of NCIA, please join today in order to ensure we have the resources we need to build upon this momentum and finally enact federal legislation that will allow your business and our industry reach its full potential. NCIA is the only organization with three full-time lobbyists in Washington, D.C. in addition to a well-connected professional advocacy firm. Michael, Michelle, and Maddy have been working the halls of Congress, fighting for state-legal cannabis businesses since long before it was vogue. We could not be more proud of our lobbying team, and we encourage you to follow their progress on these appropriations bills, as well as their important work on the SAFE Banking Act which is also expected to receive a vote in the weeks ahead.
Please also take a few minutes to call your Senators today and ask them to support legislation that would protect state cannabis laws. There is no time to waste because the Senate will be considering appropriations bills with similar marijuana provisions over the Summer. And keep your eye on more news from NCIA’s government relations team – the only full-time government relations team fighting for the legal cannabis industry in Washington.
Small Business Committee Congressional Hearing – The Cannabis Industry’s Unlocked Potential
by Michelle Rutter, NCIA’s Government Relations Manager
On Wednesday, June 19, the House Committee on Small Business will hold a hearing entitled “Unlocked Potential? Small Businesses in the Cannabis Industry.” This is the first time in history that this committee has ever considered this topic! As the nation’s oldest and largest trade association, NCIA is proud to represent thousands of small businesses at this hearing.
The hearing will “focus on the opportunities the legitimate cannabis industry presents for small businesses in states with legal cannabis, as well as entrepreneurs from traditionally underserved communities. The hearing will also enable members of Congress to explore the challenges currently faced by those businesses, and also those of “ancillary” or “indirect” cannabis businesses who may not be directly involved in the production or distribution of cannabis products.”
NCIA has been proud to work very closely with the House committee on this hearing. As a result, Dana Chaves, who is chairwoman of NCIA’s Banking Access Committee and the Senior Vice President and Director of Specialty Banking at First Federal Bank of Florida will be testifying at the hearing!
Other witnesses will include Shanita Penny, M.B.A., President of the Minority Cannabis Business Association, Eric Goepel, Founder & CEO of the Veterans Cannabis Coalition, and Paul Larkin, who is the John, Barbara, and Victoria Rumpel Senior Legal Research Fellow in the Meese Center for Legal and Judicial Studies at The Heritage Foundation.
The Committee memo also states “the marijuana legalization movement brings new opportunities for entrepreneurship and business start-up in the cannabis industry. Because this is such a nascent sector, legalization also allows policymakers to increase equity and diversity in the cannabis industry, which can take the form of addressing financial barriers to market entry and ensuring the industry reflects the local community.” It also recognizes that “because this is such a nascent sector, legalization also allows policymakers to increase equity and diversity in the cannabis industry, which can take the form of addressing financial barriers to market entry and ensuring the industry reflects the local community.”
According to a recent Leafly report, “Annual [cannabis] sales nationwide are nearing the $11 billion mark. And the number of Americans directly employed in this booming industry has soared to more than 211,000. When indirect and ancillary jobs—think of all the lawyers, accountants, security consultants, media companies, and marketing firms that service the cannabis industry—are added, along with induced jobs (local community jobs supported by the spending of cannabis industry paychecks), the total number of full-time American jobs that depend on legal cannabis rises to a whopping 296,000.”
NCIA applauds the House Committee on Small Business and Chairwoman Velazquez (D-NY) for discussing this important topic. NCIA is proud to represent all of the cannabis industry’s small businesses!
Member Blog: My Journey Through The Intersection of the LGBTQ Community and Cannabis Movement
By Erich Pearson, SPARC
NCIA Board and Founding Member
Reflecting on the decades-long fight to end prohibition of marijuana, one person comes to mind this month as we look at the similar and interconnected decades-long Gay Pride movement and what it means for the LGBTQ community today. One activist largely credited for legalizing medical cannabis in California is the original “cannabis influencer” Dennis Peron. We have much to be grateful for as we remember his legacy advocating for AIDS patients in California to have access to medical cannabis.
As for my role in both of these these important causes, I arrived in San Francisco in 2000 after graduating college in Indiana. I was happy to find San Francisco to be not only accepting of me as a gay man, but also accepting of me as someone interested in the cannabis movement. In the 1990s, there were a handful of medical cannabis dispensaries operating, un-permitted and un-regulated. It wasn’t until 2006 that Americans For Safe Access (ASA), Drug Policy Alliance (DPA), and Marijuana Policy Project (MPP) along with a handful of local advocates led the charge to regulate dispensaries.
A few of the most vocal advocates were veterans from the political days of Dennis Peron. Dennis was not involved in the regulatory process of 2006. It was widely known that Dennis didn’t like regulations (he repeated this during the Prop 64 campaign years later). Dennis thought cannabis should be grown and sold freely, outside of an alcohol-type regulatory environment. He was right, but unrealistic – hence his waning interest in the politics of it.
Dennis did have a few friends who wanted to see cannabis regulated in San Francisco, and one was Wayne Justmann, a gay man that used to work the door at Dennis’ cannabis club at 1444 Market Street. Wayne is a friend of mine today, and we worked closely together to advocate for a dispensary program that respected the existing operators, despite their “inappropriate” locations in many cases. We ultimately won this battle, as San Francisco has a healthy respect for social pioneers.
San Francisco was also the first city to regulate on-site consumption. This was allowed in order to provide AIDS patients a safe place to medicate, outside of government housing. This has proven to be a successful program, with little public resistance even today as we permit more of these lounges, primarily designed for adult-use consumption.
I started a free compassion program in San Francisco in the early 2000’s at Maitri AIDS Hospice. We still deliver twice a month to patients there. This has been an incredibly successful program and a very rewarding experience for myself and the staff who carry it out.
Today, I don’t see a lot of synergies anymore between gay progress and cannabis progress despite its intertwined history, but we at SPARC honor that history with a t-shirt claiming victory: “Legalized Gay Pot.” Of course, the fight for fair treatment and equality for both cannabis and LGBTQ right is far from over, but in San Francisco, I’d say we’ve come a long way on both fronts. And as cannabis legalization sweep through other states across the country, we can see studies that show gay, lesbian and bisexual people being the highest level of consumers among other select demographics, showing that our communities continue to overlap.
In looking back on all of this history and progress, I am thankful for all of the advocates who put themselves forward to fight for cannabis AND LGBTQ rights – we wouldn’t be here without their hard work, dedication, and selflessness. I now look forward to a future where everyone, in every state, can access the cannabis plant and be treated with respect and fairness.
Photo By CannabisCamera.com
Erich Pearson is a recognized leader in the cannabis industry – a long-time advocate, legislative consultant, dispensary operator, cultivation expert, and NCIA board member.
A proponent of medical cannabis regulation, cultivation, and best practices since 2000, Erich served on the San Francisco District Attorney’s Medical Marijuana Advisory Group and consults on state and local medical cannabis policy and legislation.
Erich was instrumental in the passage of both San Francisco’s Medical Cannabis Dispensary Act and the law enforcement “lowest priority” resolution of the San Francisco Board of Supervisors. As a result of Erich’s work he was appointed in 2007 by Supervisor David Campos to sit on San Francisco’s Medical Cannabis Working Group.
In 2010 Erich launched SPARC, a nonprofit medical cannabis dispensary providing safe, consistent and affordable medical cannabis to patients in San Francisco. SPARC provides high quality, lab-tested cannabis to qualified patients, and collaborates with local hospices, residential care facilities, and dispensaries to successfully supply medical marijuana at no cost to seriously ill patients.
How does SPARC do it? By growing cannabis more efficiently. Erich’s expertise is constructing and managing large indoor cultivation facilities. With a robust Research & Development team, Erich is meticulously focused on developing the optimal environmental recipe for high-yield cultivations using unique systems of lighting, ventilation and design.
SPARC is a Founding & Supporting Member of NCIA. Erich holds a BS in Construction and Project Management from Purdue University.
Committee Blog: The Hiring Process Checklist
by NCIA’s Human Resource Committee: Kara Bradford of Viridian Staffing, Kerry Arnold of Canndescent, Heidi Quan of Murchison & Cumming LLP, Nichole McIntyre of Urban-Gro, Michelle Whitmore of H2 Talent, and Mark Hackett of Emerge Law Group.
Maybe you’re just getting your business started. Perhaps you’ve already been rolling full steam ahead. Either way, people are crucial to your business. The NCIA Human Resource Committee formed this past year. The committee, headed by Kara Bradford of Viridian Staffing, includes experienced HR Practitioners, Recruiters and Employment Attorneys, who have all brought their collective “best practices” together in an effort to assist NCIA members to navigate the often complex world of employment.
The HR Committee is starting off by releasing a series of checklists to provide some essential guidelines for your firm during the hiring, on-boarding and termination phases of employment. Without further ado…
Welcome to the first installment of the NCIA Human Resources Committee Employer Checklist Series! Today, we begin where every employer begins – the hiring process – and present the Hiring Process Checklist. Although laws may vary from state to state and each employer’s approach to hiring may differ, the Hiring Process Checklist provides a framework to assure your hiring process includes basic best practices, so you can attract and hire the best candidates.
Why is it important to have a well thought out hiring process? In this era of full employment, you just need to hire warm bodies before your competitors, right? Wrong! There are at least three critical reasons to make sure you put a good hiring process in place.
First, your hiring process must comply with the law. Are your job postings nondiscriminatory? Does your job application request potentially illegal information, such as criminal background, salary history or prior workers’ compensation claims? Are interviewers only asking applicants appropriate questions? Are you storing applications and other information about applicants for the required length of time? A good hiring process greatly reduces your risk of legal problems.
Second, hiring the wrong applicant is expensive. According to a study by SHRM (The Society for Human Resource Management), the average cost of hiring an employee is just over $4,100. This does not include the cost of training a new employee, a new employee’s lower productivity and greater likelihood of making mistakes or the stress on your other employees who must pick up the slack while the new employee ramps up. A good hiring process can improve your bottom line by significantly increasing the likelihood that you hire the right employee the first time.
The third and perhaps most important reason to lock down your hiring process: you are introducing potential employees to your company for the very first time. From the time they read your job posting until you inform them of your hiring decision, the applicant is assessing and judging your company. In this competitive job market, you need to quickly give that applicant a reason to want to work for you, rather than all the other hungry employers vying for their services.
An unstructured, haphazard hiring process sends all the wrong messages. Right or wrong, it tells an applicant that the company is not serious about hiring the best employees. It tells the applicant that you don’t value their time. Would you want to work at that company?
You only get to make one first impression, so make it a good one! Be upfront and clear with the applicant about the hiring process and your timeline and stick to them. Keep the interview process on schedule and make sure interviewers are well-prepared. If you tell an applicant you will get back to them by a certain date, get back to them by that date. If the timeline changes, let the applicant know. Treat every applicant with respect at every stage of the hiring process.
Once you establish your hiring process, the hard part begins – putting the plan into action. Even the best hiring process is useless if your staff doesn’t understand it. Clearly explain the hiring process to staff who will implement or supervise it. Provide them with the training and tools they need. Finally, periodically review the success of the hiring process and make improvements, so you continue to attract high-quality job applicants.
We hope you find the Hiring Process Checklist a useful tool as you develop your company’s hiring process, but it is not the only tool available. Take advantage of the many resources available to you in books and magazines, on the internet, and through the services of an HR professional or attorney.
Happy hiring!
The HR Committee needs and values your feedback. We exist to serve NCIA members, so please tell us how we can serve your needs by emailing us at HRC@TheCannabisIndustry.org. Thank you.
VIDEO: Looking Back On NCIA’s 9th Annual Cannabis Industry Lobby Days
On May 21-23, 2019, NCIA held it’s 9th Annual Cannabis Industry Lobby Days in Washington, D.C. with more than 250 NCIA members who represent the cannabis industry all across the country. NCIA’s Executive Director Aaron Smith highlights some of issues we brought to the halls of Congress to educate House Members and Senators, as well as our brand-new VIP Day for PAC Leadership Circle Members.
“One way that I think really demonstrates the leadership that NCIA has here on Capitol Hill and the way that we’ve moved the dial in Congress is that between all of the events at Lobby Days, over 20 members of Congress showed up to speak, attend, and mingle with NCIA Members.” – Aaron Smith, NCIA Executive Director and Co-Founder
Thanks to everyone who joined us in our nation’s capital to bring the advocacy, education, and community to our federal legislators and lawmakers.
Mark your calendars for next year’s 10th Annual Lobby Days happening May 19-21, 2020!
(Due to the COVID-19 pandemic, this has been moved to September 2022.)
Be sure to check out the full photo album from this year’s Lobby Days!
Partner Blog: The Top 10 Reasons to Participate in a Compensation Survey (And How to Use It)
By Dan Walter, FutureSense LLC
Compensation surveys don’t sound like much fun. In fact, they seem like a pain in the neck for everyone involved. Why then should you participate? Heck, why should the NCIA and FutureSense even make an effort to spearhead such an effort? Our driving force is a goal to see this industry reach its potential as quickly as possible. The National Cannabis Industry Association(NCIA) and FutureSense have joined forces to create CannaCompensation, our industry’s first comprehensive compensation survey.
One of the most common questions we hear is: “How is compensation survey data used?”
Companies in many other industries (if not most other industries) generally use the resulting data to determine how much the market pays each position and level in an industry. Data is reported in quartiles or deciles and allows companies to determine their own “compensation philosophy” for paying staff members. Companies use this information to set annual pay ranges, determine incentive compensation levels and track pay trends. Nearly every industry, from golf course management to construction, technology, and healthcare use surveys to create defensible compensation data.
A formal survey, such as CannaCompensation, must adhere to specific guidelines to ensure anonymity, carefully balance responses so data from big companies doesn’t overwhelm the data from smaller companies, and also avoid antitrust issues (these are DOJ regulations).
The following Top 10 List provides a bit more information about why you should sign up today for the 2019 CannaCompensation survey.
Pay is the largest expense at most companies. This is especially true for high-growth businesses. HR uses between $0.65 and $0.80 of each dollar your company’s revenue. This leaves an only tiny bit for real estate, marketing, security, product improvement and everything else your company needs. You better make sure you are getting your money’s worth. Paying even slightly more effectively can provide material benefits to budgets throughout your organization.
Our industry pays people well, and politicians need to understand that. Finances drive policymakers. Data that shows how well the cannabis industry pays employees relative to other comparative business will go much farther than scientific proof of the efficacy of our product, or the public’s desire to have easier access. The NCIA will use the results of this survey to further the cause of every company in and supporting, the cannabis industry.
Every company should comply with legal expectations and regulations. Compensation survey data is the de facto standard method for setting pay in nearly every industry. Most importantly, it is a sound defense against industry collusion and price-fixing. Antitrust laws are no joke. A well-run compensation survey provides competitive market data in an entirely confidential structure. Data resulting from the CannaCompensation survey will comply with the Safe Harbor guidelines established by the Federal Trade Commission (FTC) and the US Department of Justice.
Replacing a good employee is ridiculously expensive. The total cost of replacing an employee can be 150-200% of their annual salary! Every employee you keep saves you money, builds your knowledge base, and creates a more employee-friendly environment. Pay is seldom the only reason people leave, but your competitors will be perfectly happy to try and “buy” your best people.
More confidence in your pay data means more confidence in your hiring process. Other high-growth industries, like the technology sector, depend on reliable data to shorten the hiring lifecycle. Cannabis companies are growing incredibly fast. There’s no time to recover from mistakes, and every extra day you spend negotiating with someone is one more day they can’t help you grow.
Current pay data is either very limited, likely to be biased or too generic to apply to many cannabis positions. There are a few data sources, for a limited number of positions. These include data that mainly comes directly from employees. This data has been measured in other industries to be 125-135% higher than company-reported data. Data aggregators like Payscale, Salary.com, and Payfactors can be very useful as a component of your pay data but tend to lack the specificity needed in our industry. We can all probably agree that the head of a blueberry farm is not on par with the head of a legal grow operation.
Unique industries use unique data. Most high-quality compensation surveys are focused on narrow industry definitions. This allows similar companies to know that the pay data they are using is relevant and likely to be used by their peers. Healthcare companies don’t care what financial firms pay their accountants. Construction firms don’t care what software companies pay their project managers. The world of cannabis business is incredibly broad and very deep. Our pay data must be equal to that challenge.
Your investors will increasingly demand that you pay people correctly. Investments in cannabis companies continue to increase. When a Private Equity or Venture Capital firm invests many millions of dollars in a company, they need to know that you’ve handled the nuts and bolts like FLSA rules, gender equity, and general competitive pay. They expect to see defensible pay ranges for every position. They want to know that you aren’t wasting money on employees and that you aren’t at risk of losing people over compensation issues.
When hiring people away from other industries, it is critical that you can show your value proposition. Biologists, distribution chain professionals, security experts, finance pros, and countless other potential hires can choose to work in any number of other industries. Some may be passionate about our industries, but many may be curious but trepidatious. Jumping into an industry that is not fully proven can be difficult for someone with experience in and job offers from a more traditional industry. Great pay data will provide you with ammunition to compete. This has been incredibly effective for other emerging industries in the past.
Most importantly, participating helps you win the war for talent. Great people are hard to find in any business. They are even harder to hire. This is a major issue for any industry that is inventing itself on the fly. Your competitive advantage may come from your business model or product, but you cannot succeed without the right people to execute your vision. This survey will not only provide pay data, but it will also provide basic job descriptions and leveling information that will allow you to understand both entry-level and senior positions. If you don’t use this information to win, your competitors certainly will.
Regularly using a reputable and comprehensive compensation survey is a best practice of every company that is successful over the long-term. The cost of participation in 2019 is simply a bit of your time. The benefits pay for themselves and carry into every aspect of your business. It is a simple way to get the most out of your largest monetary investment.
Sign-up by June 14 to participate. Data collection takes only 30-60 mins on average.
FDA Rulemaking on Hemp/CBD – Hurry Up And Wait?
by Andrew Kline, NCIA’s Director of Public Policy
In April of 2019, the National Cannabis Industry Association (NCIA) formed a coalition of more than 100 CBD/Hemp entrepreneurs, scientists, medical doctors, and FDA lawyers to inform and influence FDA rulemaking on cannabis and cannabis-derived compounds. Over the past two months, coalition members worked tirelessly to draft public comments. Our goal was to answer all of the questions posed by FDA (including scientific questions), to be helpful to FDA by informing their rule-making process, and to influence the direction of their rule-making.
NCIA Files Public Comment And Testimony
On May 30, 2019, we filed 60 pages of formal comments which can be found here. I’m really grateful for the coalition’s collaborative work and quite proud of our final product. I’m also extremely grateful to the authors, including Alena Rodriguez of RM3 Labs, Dr. Paul Murchowski of Dr. Pauls, Khurshid Khoja of Greenbridge Corporate Counsel, Vanessa Marquez and Chris Elawar of CBD Care Garden, Jonathan Havens from Saul Ewing, Andrew Livingston from VS Strategies, and many others who devoted time to produce a great submission.
On May 31, I testified before the FDA and listened intently as dozens of others spoke. My takeaways were that most of the industry echoed our sentiment – that CBD is generally safe, but that safety issues do arise with adulterated products and with irresponsible manufacturing and marketing practices. I spoke about the need for consensus-driven industry standards, to include marketing and labeling practices, and for mandated lab testing. These practices will go a long way toward making certain that the industry is safe for consumers.
Concerns And Misinformation
I am genuinely concerned that there is currently great confusion in the market. People seem to think that CBD is federally legal as a result of passage of the Farm Bill of 2019. But, that is only partially true. While CBD was de-scheduled, the FDA still retains the authority to regulate the industry as a result of their prior approval of a prescription drug for epilepsy, Epidiolex. In the absence of clear regulatory guidance, people are making health claims that violate federal law. And banks and payment processors are shutting off accounts for CBD businesses because they are having difficulty assessing whether a particular business is operating lawfully.
We hope that FDA will act with deliberate speed in drafting regulations for the industry. If FDA takes its time in crafting regulations, there is danger that many CBD companies will shudder because of a lack of banking and payment processing. And we will inevitably lose market share to Canada and other international players. As always, NCIA stands ready to help.
Learning objectives for the panel include, (1) what the FDA was interested in learning about and why, (2) understanding how our industry coalition responded to the FDA’s scientific questions, (3) predictions for how the FDA will regulate CBD/Hemp and what it might mean for cannabis regulation in the future. Panelists will include members of the coalition who drafted our public comments to FDA.
In the coming weeks, NCIA will be releasing some new policy papers via NCIA’s Policy Council – the think tank for the state-legal cannabis industry. As always, if you’re interested in joining the Policy Council or have any thoughts about how we can propel this industry, please reach out me at andrew@thecannabisindustry.org.
Committee Blog: Social Justice in the Cannabis Industry – Your Answers Will Take Minutes, But The Impact Could Be Long-Lasting
By Rudy Schreier, MMLG
NCIA’s Marketing & Advertising Committee’s Social Justice Subcommittee
The cannabis industry is evolving at light speed. From nationwide legalization, to massive corporations developing green thumbs, cannabis culture is shifting daily. Exciting, yes, but this rapid cultural shift poses a threat to social justice by disregarding the harms caused by the war on drugs. Now, more than ever, the cannabis industry needs to come together and determine a course of action to ensure that social justice isn’t brushed aside.
Where should we start? And how can all of us in the industry handle something as daunting as social justice with the appropriate sensitivity? Let’s review some of the basics.
Cannabis has been aggressively policed since the mid-to-late twentieth century. Minorities from marginalized communities were disproportionately punished for cannabis crimes, contributing to the rise of mass incarceration. Those same communities punished for past involvement with cannabis face an extremely high barrier of entry in the newly legal industry. Many cities and states are adopting social equity programs to lower the barrier. For example, Los Angeles recently approved $10.5 million in funding over the next three years for its social equity program. Initiatives like Los Angeles’ are a step in the right direction; however, there’s still a lot more to be done.
While social justice in the cannabis industry is a new focus for some, others have been fighting for decades. Omar Figueroa, a cannabis lawyer and advocate located in Northern California, helped to convince the Sonoma County District Attorney to clear cannabis convictions and has defended numerous activists pro bono over the years. When asked how the cannabis industry should address social justice, Omar replied, “[We need to] provide grants and loans to address disparities in access to capital, continue to advocate against cannabis prohibition, and create a leadership institute to empower people directly affected by the war on cannabis.” Omar, like many other committed ‘canna-pros’, are constantly fighting for fair and equitable practices in our industry. With so much work to be done, it can be challenging figuring out where to start. This is where you come in.
As we build the new cannabis culture, we have the unique opportunity to do things differently, ethically, and better. NCIA’s Marketing & Advertising Committee’s Social Justice Subcommittee is developing an approach to social justice for the cannabis industry, and we need your help. Since we can’t tackle everything, we’re asking you to make your voice heard and help us navigate the difficult terrain ahead. Please take this 4-question survey about what social justice should mean in the cannabis industry. Your answers will take minutes, but the impact could be long-lasting. Feeling ambitious? Share this ‘gram-sized graphic’ in your own social channels to spread the ‘poll power’ far and wide!
Interested in learning more? NCIA’s Social Justice Subcommittee will be hosting a panel titled “Cannabis Reform Stops Short: Why We Can’t Let Social Justice Get Lost” at NCIA’s Cannabis Business Summit & Expo in San Jose on Tuesday, July 23, from 1:30 PM – 2:30 PM. Register for the conference today!
Marketing and Advertising Committee: (MAC) of National Cannabis Industry Association (NCIA) — develops best practices in cannabis industry marketing /education, opening dialogues with media outlets that ban cannabis-related advertising.
Social Justice Subcommittee: An arm of the MAC committee, the aim is to ensure that social justice issues are positively addressed via cannabis reform. Team Members: MMLG, Cannawise, Canna Advisors, Annabis.
The Author: From operations and marketing, to office and project management, Rudy Schreier wears many hats for the Los Angeles-based licensing and compliance consultancy MMLG. Schreier co-founded the #StartsAtThePolls campaign, which utilized social media platforms to inform voters on how to register to vote, how to get to the polls, and pro-cannabis candidates running for the 2018 elections. The Panel: Be sure to catch the Social Justice Subcommittee’s panel featuring Lisa Jordan (Canna Advisors), Omar Figueroa (Law Offices of Omar Figueroa), Shanita Penny (Minority Cannabis Business Association), and Felicia Carbajal (The Social Impact Center) at NCIA’s Cannabis Business Summit & Expo titled, “Cannabis Reform Stops Short: Why We Can’t Let Social Justice Get Lost.”
VIDEO: Member Spotlight – Magnolia Wellness
In this month’s video spotlight, get to know Debby Goldsberry, Executive Director of Magnolia Wellness, and her team based in Oakland, California. Debby is a community leader who is active in the campaign to reform the California state cannabis laws and to protect patients’ rights. Learn more about how the team at Magnolia Wellness creates a healing environment for their patients, including the East Bay’s only vapor lounge and dab bar, and how they give back to the community through various social programs.
NCIA’s 9th Annual Lobby Days – Strength in Numbers, Power in Progress
Just two short weeks ago, NCIA hosted our 9th Annual Cannabis Industry Lobby Days. This impactful event brought over 250 NCIA members to our nation’s capital to advocate and lobby on important issues facing our industry like access to financial services, amending IRC Section 280E, and addressing social equity.
Over the course of 48 hours, attendees met with nearly 300 congressional offices to share their stories and experiences, and dropped off informational materials to 200 offices that we did not schedule meetings with. In addition to these meetings, we had two briefings, held a PAC fundraiser, and hosted our first-ever VIP Day for members of our Leadership Circle. Let’s take a look at some of the highlights from this important event:
To kick off our first-ever VIP Day, we held a briefing at the House of Representatives entitled “SAFE Banking: Where We Are, and Where We’re Going,” where Congressman Ed Perlmutter (D-CO), the lead sponsor of HR 1595, the Secure and Fair Enforcement (SAFE) Banking Act, kicked off the day. On the panel was Tanner Daniel of the American Bankers Association, Becky Dansky of SARBA, and Gail Rand of ForwardGro, while attendees included NCIA members, congressional staff, and members of the press.
Following the briefing on banking, VIP Day attendees were shuttled to a luncheon featuring Reps. Joe Neguse (D-CO), Katie Porter (D-CA), Gil Cisneros (D-CA), and Steven Horsford (D-NV). All of these members of Congress are freshman who support cannabis reform, and talked about the importance of advocacy and the use of political action committees like the NCIA-PAC that they rely on.
After lunch, VIP Day attendees were shuttled back to Capitol Hill, where teams met personally with members of Congress, committees of jurisdiction, and congressional leadership.
Our first ever VIP Day was a huge success, and we thank the members of NCIA’s PAC Leadership Circle for their dedication to advocacy.
Lobby Days then officially started with a Welcome Reception attended by other advocates in Washington, D.C., NCIA members, and even congressional staff!
The following day, the work really began at our breakfast training. There, attendees met with the groups that they would be in for the day, were taught talking points on various bills and issues, and learned about how to use the app that housed all of their meeting information.
Washington, D.C. is full of great photo ops, so after our breakfast training, all of our attendees shuttled over to the Capitol… and snapped a few selfies, of course!
Meetings on Capitol Hill went from 12pm to 4pm. Each of NCIA’s 54 lobbying teams had at least four meetings over that course of time. Some groups were even lucky enough to sit down with members of Congress to talk about the issues that affect them and their businesses the most.
The day concluded with a fundraiser for the NCIA-PAC. This year’s event was wildly successful, as we had 15 members of the House of Representatives (Reps. Porter (D-CA), Charlie Crist (D-FL), Josh Harder (D-CA), Earl Blumenauer (D-OR), Ruben Gallego (D-AZ), Salud Carbajal (D-CA), Jared Huffman (D-CA), Jason Crow (D-CO), Brendan Boyle (D-PA), Diana DeGette (D-CO), Denny Heck (D-WA), Barbara Lee (D-CA), Dina Titus (D-NV), Susie Lee (D-NV), Matt Gaetz (R-FL)) attend and speak, as well as Sen. Jeff Merkley (D-OR).
The final day of Lobby Days began with a standing-room-only briefing that focused on NCIA’s new white paper titled “Increasing Equity in the Cannabis Industry” that our Policy Council worked on with the Minority Cannabis Business Association (MCBA). Opening remarks were given by MCBA’s President, Shanita Penny along with the Principal of Greenbridge Corporate Counsel, Board Vice-Chair of the National Cannabis Industry Association, and Co-Chair of the Minority Cannabis Business Association Policy Committee, Khurshid Khoja. We were also joined by two members of the Congressional Hispanic Caucus, Rep. Lou Correa (D-CA), and Rep. Ruben Gallego (D-AZ).
Lobby Days wrapped up with small groups dropping off folders with informational materials to congressional offices that we were unable to schedule meetings with. While some may think these drop-ins are ineffective, they actually prove to be incredibly helpful long after our attendees go home.
The dates for NCIA’s 10th Annual Cannabis Industry Lobby Days have already been chosen, so mark your calendars for our biggest year yet, happening May 19-21, 2020!
Be sure to check out the full photo album from this year’s Lobby Days!
Congratulations to Ean Seeb For His New Public Policy Role!
Photo By CannabisCamera.com
NCIA leadership and its Board of Directors are thrilled to be celebrating the transition of one of our very own cannabis industry leaders into a prominent public policy role for the state of Colorado. Please join us in congratulating Ean Seeb for his new role as Governor Jared Polis’ Special Advisor on Cannabis.
Throughout his career, Ean has been a tireless advocate for replacing criminal marijuana markets with a socially responsible and well-regulated cannabis industry and now he’s bringing that experience into the public sector.
Ean has served the cannabis community and industry for more than a decade, and now moves on from his role as co-owner and founder of Denver Relief and Denver Relief Consulting, as well as other endeavors including Manna Molecular which he represented on the NCIA board of directors. Ean was an active member of the NCIA board of directors for nearly seven years and chairman of the board for two of those years.
“I can’t think of a better person to advise Governor Polis on cannabis policy. During his tenure in the private sector, Ean has always demonstrated a commitment to justice, personal liberty, and corporate social responsibility,” said NCIA executive director Aaron Smith. “The people of Colorado are very lucky to now have him now putting his talents and passion to work for them.”
“Ean is a leader in the cannabis industry and we are thrilled to have him on our team. We welcome his incredible expertise and know he will help us continue Colorado’s leadership in this growing industry,” said Chief of Staff Lisa Kauffman.
“I’m incredibly grateful to have had the opportunity to work with NCIA over the years to help promote the interests and best practices of the cannabis industry as a board member and citizen lobbyist. I entered the cannabis industry because I wanted to help people suffering under marijuana prohibition, and NCIA made it possible to that on a larger scale,” said newly-hired Ean Seeb.
It was through NCIA that I met then-Congressman Polis – at the very first NCIA event in Colorado in 2011, which eventually led to my new role in the Governor’s office. Now I have the chance to help even more people throughout the great state of Colorado and beyond in the coming years.”
Congratulations and best wishes, Ean!
Partner Blog: CannaCompensation – Are Recruiter Rates Accurate?
Recruiters are on the front lines in the competition for talent. When a role is critical, tough to fill, or requires specific expertise, recruiters can play an invaluable role. They have the contacts, the skills, and the persistence to get the people you need right now.
Recruiters are a special kind of farmer. They aren’t picking the low hanging fruit. They are working on selecting the very best fruit. But, quality can come at a premium price.
The cannabis industry now has several strong talent acquisition firms. They know the industry and the lingo. They have contacts, and their connections have contacts. Currently, they are also one of the few sources of compensation rates for many positions in the industry. The pay data they provide is accurate, but it may not be “right.” How can this be?
Remember, the best recruiters target the best talent. They also target people with current jobs. The best talent usually gets paid more than typical, and still perfectly acceptable, talent. Employed people cost more to hire than unemployed people. This can result in recruiter provided pay ranges that are above industry norms.
The top people in any position commonly make 10-20% more than mid-level people. Motivating someone to change companies can take twice the increase as promoting an internal employee. This means recruiter-provided pay rates are often 20-35% higher than a formal compensation survey would indicate. This is fine for critical people, but it’s a ridiculously expensive way to pay an entire staff. This is why formal compensation surveys, like CannaCompensation, are essential to your success.
Compensation is likely your biggest expense – it may eat up as much as 75% of your revenue. Saving even 5% on paying your staff can mean the difference between growth and failure. This type of savings can fund a marketing campaign, purchase new equipment, develop new products, or become the down-payment on new real estate. When you provide your pay data to the CannaCompensation Study, you are building a foundation for future success. Participating is easy and confidential.
Your recruiters will always remain a vital source of information for pricing your highest priority positions. CannaCompensation will serve as the foundation for your pay decisions. When you combine them, you will be armed to win the battle for both talent and future success.
Sign-up by June 14 to participate. Data collection takes only 30-60 mins on average.
Top Ten Female Industry Leaders to Meet at #CannaBizSummit
The cannabis community has seen an influx of female entrepreneurs and leaders laying the groundwork for the future. Whether they’re advocating for reasonable legislation, engineering extraction techniques, or hacking the crazy world of cannabis marketing, the cannabis industry continues to boast a higher percentage of female leadership than the national average – with even more room to grow. As a significant part of America’s fastest growing industry, the women of cannabis are determined not to be left behind.
Throughout her extensive career, Lisa has led large-scale corporate campaigns and has made a visible impact on premier organizations in the nonprofit sector. Her dynamic approach allows her to grow and shape organizations from the ground up. Lisa’s work has won numerous awards, including local ADDYs, national awards for predictive analytics, and a Bronze Lion at the Cannes Lions International Festival of Creativity.
Maureen has 25+ years of professional training experience; she is the Founder and Chief Facilitator with Cannabis Trainers™. She has led thousands of workshops and inspires cannabis industry professionals to create and sell products compliantly and professionally. She has combined her skills and expertise with Food Safety and Responsible Alcohol Service into a comprehensive, engaging program to ensure the responsible, knowledgeable and safe sale of cannabis: Sell-SMaRT™.
Kim brings her many years of social responsibility expertise, including participation in numerous and international CSR bodies and community boards, to her role as Executive Director. Prior to joining GCP, Kim spent 11 years at Atlantic Lottery Corporation (ALC) as Manager of Corporate Social Responsibility. During that time, Kim led, developed, prepared and executed ALC’s CSR strategy, which included a focus on diversity and inclusion, health and wellness, volunteerism and responsible gambling. A seasoned media and public relations practitioner, Kim is a proactive and dynamic leader who gets things done.
Laura Wilkinson is an entrepreneur with over 35 years of experience in emerging industries building several companies from zero. She has successfully launched broadcast companies, precious metals recycling entities, an information security company and consumer product manufacturing for retail – all industries with substantial compliance requirements. Between those, she worked in Broadcast Radio and Television in San Diego and Fortune 500 Marketing Communications leadership positions in the energy sector.
Diane has over twenty years of leadership experience in digital marketing and advertising. As CEO of iCre8t Digital Agency, she has crafted award winning national campaigns for brands such as PetSmart Charities, Mizuno and Ferrari. Diane has led digital advertising campaigns for clients such as Kimberly-Clark, Coke, The Home Depot and BMW. Additionally, Diane has executed national social media campaigns to drive in store sales at Walmart for Central Garden & Pet. That campaign increased sales by more than 128% and solidified their vendor shelf-space with the large retailer while winning the 2011 Best Online Brand Experience through social media.
Kara has been an HR professional, specializing in Talent Acquisition, Talent Management, Workforce Planning, Employer Branding, Compliance, Federal/State Employment Laws, and Organizational Design for over 15 years. Her career has spanned multiple Fortune 100 companies and start-ups in a wide variety of industries. More importantly, she has more experience recruiting in the cannabis industry than any other recruiter globally. In addition, she has built companies from the ground up and loves putting together perfect teams. Kara has an MBA in Human Resources & Organizational Behavior and is PRC, CIR, & CSSR Certified.
Ms. Quan has experience representing individuals and businesses in a wide variety of matters, including areas of business litigation, general liability, professional liability, employment law, landlord/tenant, health law and product liability. Her clients have included owners of both small and large businesses, hotels, restaurants and bars, residential care facilities and nursing homes, security companies, national and international companies, and owners and property managers of shopping centers, commercial buildings and other properties. Ms. Quan also assists clients within the cannabis industry, as well as those affected by cannabis legalization.
For the past several years, Lauren has been active in the drug policy reform movement as well as other progressive and humanitarian efforts. She is the former Chair of the Board of Directors of Students for Sensible Drug Policy (SSDP), an international non-profit organization working to end the counterproductive “War on Drugs.” Currently, she sits on the Board of Directors of the Sonoma County Growers Alliance, an organization that advocates on behalf of local cannabis businesses.
Laura is a professional mechanical engineer specializing in the design of HVAC, plumbing, and process systems for the cannabis industry. Using her experience in traditional engineering methods through Root Engineers parent company, ColeBreit Engineering, she applies her team’s depth of knowledge to create efficient and economically sound solutions for cultivation and processing facilities. Taking a custom approach to each project, Laura has experience working in the traditional design-bid-build method, as well as in the design-build arena.
Before heading to law school, Karen was an executive in the advertising business, as well as having been a personal manager to a major recording artist. She also co-wrote of a Top-10 Hit song in Europe that also made Billboard Magazine’s Hot 100.
Today, Karen brings her unique background and skills to the practice of intellectual property and business law. Her firm is an active member of the National Cannabis Industry Association where Karen serves as Chair of the Packaging and Labeling Committee (PLC). Throughout the years, Karen has spoken at a number of NCIA meetings and other Cannabis industry conferences.
1. Lisa Jordan
2. Maureen McNamara
3. Kim Wilson
4. Laura Wilkinson Sinton
5. Diane Myer Brown
6. Kara Bradford
7. Heidi Quan
8. Lauren Mendelsohn
9. Laura Breit
10. Karen J. Bernstein