NCIA Committees: Now Accepting Applications For The 2023 Term!
If you want to take your industry involvement to the next level, now is the time to get involved with one of NCIA’s 14 member-driven committees! NCIA is excited to announce that from now until November 11, we are accepting applications for the 2023 term!
APPLICATION EXTENSION INFORMATION:
Committee applications for the 2023 committee term HAS BEEN EXTENDED and is now openthrough November 25th, 2022! All NCIA members are encouraged to apply! *Due to overwhelming interest we can not guarantee a committee assignment.
All NCIA annual members in good standing are invited to apply for an NCIA committee seat for the 2023 committee term.
NCIA Committees enable current NCIA members to engage their vast and varied areas of expertise and passion to:
Effect change and influence public opinion and policy;
Enhance leadership skills;
Expand professional and personal network; and
Develop best practices and guidelines to shape the future of our industry.
NCIA Director of Communications Bethany Moore checks in with what’s going on across the country with the National Cannabis Industry Association’s membership, board, allies, and staff. Join us every other Thursday on Facebook for NCIA Today Live.
Member Blog: Payment Processing In The Cannabis Space
There is a lot of confusion about payment processing in the cannabis space because payment processing is somewhat confusing to begin with, and because, in the cannabis space, ambiguity is a way of life.
The title of this very blog post could, realistically, seem misleading to some.
So, to be clear, when I say, “Cannabis Space,” I mean the entire industry — from plant-touchers (CBD included) to the ancillary businesses built up around it.
The passage of the 2018 Farm Bill marked an exciting new chapter for the industry. Suddenly, CBD, or, more specifically, any ingestible cannabis product containing .3% THC or less by volume, was classified as hemp. And since it is marijuana, and not hemp, that is defined as a Schedule I substance under the United States Controlled Substance Act, the Farm Bill, technically, made products like CBD as legal as cow milk — federally, anyway.
The upshot of this new classification is that now, at least some players in the cannabis space can market their products to a national base of consumers and clients, and they can do so by accepting credit cards as payment.
However, the myriad Acquiring Banks across the United States have not exactly jumped for joy at the prospect of providing credit card processing in the form of merchant accounts to CBD retailers. Reticence rules. CBD is considered high risk, and four years on, only a handful of them have thrown their hat in the ring.
Jargon Alert I: Acquiring Banks and Issuing Banks
In merchant processing parlance, banks fall into two categories: Acquiring Banks and Issuing Banks. Acquiring Banks, or, Acquirers, provide merchant processing accounts to businesses wishing to accept credit card transactions. Issuing Banks, short for Card Issuing Banks, are banks that offer branded payment cards directly to consumers. For example, if your bank has ever offered you a Visa card, it is an Issuing Bank (not that it couldn’t also be an Acquiring Bank, too).
Jargon Alert II: CBD is ‘High Risk’
CBD is deemed high risk by the card associations (i.e., Visa, MasterCard, American Express), and when the card associations deem a product or industry high risk, most Acquiring Banks tap out. This is because financial institutions are, by nature, risk averse (subprime mortgage crisis notwithstanding).
So let’s talk for a minute about risk. High risk, that compound term, is a truncation of a longer phrase: ‘Higher risk of fraud or chargebacks.’
Why are CBD products at higher risk of fraud? It’s impossible to say for sure since the Visas and MasterCards of the world are publicly traded companies with their own trade secrets and IP, but there are several characteristics unique to CBD, or any cannabis product now federally legal, that likely figured into that decision.
Those FDA disclaimers that CBD retailers must print or paste on all product packaging and webpages are as good a place as any to start. They are mandatory because none of the benefits assigned to CBD have been clinically proven. There just isn’t enough data or testing at this point, and no big story there. That’s what happens when you demonize a plant for 100 years.
Consequently, from the perspective of the FDA, and the card associations, by extension, consumers are making CBD purchases with baked-in expectations based, exclusively, on word-of-mouth advice and anecdotal data. That’s a recipe for dissatisfied customers. And dissatisfied customers tend to charge back transactions.
The card associations, and the banks who provide merchant accounts, worry incessantly about fraud and chargebacks.
Too Close for Comfort
Dissatisfied customers aside, there are onerous legal nuances that make the prospect of boarding cannabis merchants, even those selling products that are federally legal, daunting for banks.
Selling a product with .31% THC across state lines is felonious. It is a federal offense. Violating a law like that could get a bank’s charter revoked, or, at a minimum, result in massive fines.
On the other hand, selling a product with .30% THC across state lines is 100% federally legal. As stated above, safe as milk, federally.
That is a heck of a distinction. If any product contains more than .3% THC by volume, it is ‘marijuana’ in the eyes of the federal government. From the perspective of the banks, that’s a little close for comfort. Furthermore, banks don’t operate laboratories. They must rely on testing data presented to them in the form of third-party lab reports — Certificates of Analysis or COAs for short — to verify that the products being sold are federally legal.
The last thing an Acquiring Bank wants to do is violate a federal law EVER. It could result in a loss of their charter, lawsuits, and massive fines. And it’s important to keep in mind that the Acquiring Banks out there offering merchant accounts to CBD retailers are not giant, publicly traded institutions like Bank of America or Wells Fargo. They tend to be much smaller, and therefore, have infinitely smaller war chests for court cases.
Still, separating the federally legal Tier I cannabis product from the federally illegal Tier I cannabis product should be pretty cut-and-dry. If the product you’re selling is .3% THC by volume or less, it is exempt from the Controlled Substance Act (CSA). If that threshold is documented in the product’s Certificates of Analysis (COA), you ought to be able to sell it.
Unfortunately, it’s not that simple. When bank underwriters look at percentages of Delta 8, Delta 9, and Delta 10 on the COAs that cross their desks, they’re frequently at sixes and sevens trying to figure the whole thing out.
From the perspective of the 2018 Farm Bill, a cannabis product is hemp if it contains .3% Delta-9 THC or less by volume, but what everybody says is “.3% THC or less by volume.” Consequently, when the compliance officer at the bank is performing her due diligence by inspecting the COAs corresponding to each product, she may encounter a lot of crooked numbers, and she may blanch at the results.
Those results, often, look something like the following:
00.195% D9-THC
52.475% d8-THC.
Federally, the Delta-9 threshold is the only threshold that matters. The 2018 Farm Bill says as much, and the 9th Circuit Court of Appeals in California affirmed it in a ruling this past May. Therefore, in the example above, the Delta-9 threshold has not been crossed. It’s not even close. It is textbook HEMP, even if the Delta-8 threshold is off the charts.
However, if the compliance officer was provided the remit, “.3% or lower,” he’s likely to look at this and say, “Fail,” without realizing that the Delta-8 THC information is irrelevant as far as federal law goes.
Complicating the underwriting further is the fact that there is, to date, no standard template for COA reports. Every lab presents them differently. Bank compliance officers rarely moonlight as scientists. Like most of us, these CBD COAs are probably the first lab reports they’ve looked at since high school chemistry.
Furthermore, the banks can set their own rules. They don’t have to board CBD merchants. Few do, and those few that do have their own standards and practices.
Todd Glider has been an e-Commerce leader since the start of the Internet age. He has an MFA in Creative Writing from the University of Miami, and has served as CEO for small and medium-sized technology companies in Spain, Austria and the United States. As our Chief Business Development Officer, Todd introduces MobiusPay’s suite of award-winning financial services to new industries, and implements the development strategies and key partnerships needed to bring value to new customers.
MobiusPay, Inc. is a U.S.-based global financial services organization that is committed to empowering individuals and businesses. For more than a dozen years, MobiusPay has leveraged state-of-the-art secure billing technology, long-standing relationships with financial institutions and award-winning customer support to provide merchant processing and payment solutions to brick and mortar and digital businesses around the world.
Biden’s Announcement, SAFE Banking, and the CAOA
Photo By CannabisCamera.com
By Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations
October has been a mixed bag in Washington, D.C. in terms of cannabis policy: there hasn’t been much news from Capitol Hill, but the Biden Administration shocked everyone when they made a big announcement earlier this month. As we draw nearer to the midterm elections in November (don’t forget to register!), let’s take a look at where things stand currently:
On Capitol Hill:
SAFE Banking Act
The SAFE Banking Act (S. 910) has been held up in the Senate for more than a year now. Many Senate Democrats (including Leader Schumer) have been pushing for changes to the bill to create a “SAFE +” bill that includes justice-focused provisions. As with all things in politics, a delicate balance must be kept in order to reach 60 votes in the hyper-partisan Senate.
The good news: Leader Schumer and other Democrats have been in negotiations with lead-Republican co-sponsor Sen. Steve Daines (R-MT) and others to determine what “SAFE +” could look like. Those discussions have been occurring for a few weeks now and will continue.
The bad news: those negotiations are taking time. As a result, you shouldn’t expect any legislative movement to occur until after the midterm elections.
There’s also the National Defense Authorization Act (NDAA) to consider. The House passed and sent the FY2023 NDAA to the Senate months ago and the large package did include the language of the SAFE Banking Act (as currently written). It’s unclear how the SAFE+ negotiations may impact cannabis banking’s chances in the NDAA: Leader Schumer could make sure the language is not in the NDAA if he feels confident about SAFE+’s chances.
CAOA
Unfortunately, there’s no substantive news regarding the Cannabis Administration and Opportunity Act (CAOA), or comprehensive reform broadly on Capitol Hill right now. While NCIA and others continue to push for descheduling and responsible regulations from Congress, the upcoming election and Senate timeline have taken precedent. It’s unlikely that CAOA will move this legislative session given the number of legislative days left in the year.
From the Administration:
Earlier this month, President Biden made an unprecedented announcement that his administration would begin the process for the pardoning of thousands of people with nonviolent marijuana use or possession convictions, and would begin the process of working with the Department of Health and Human Services to reclassify marijuana from a Schedule I drug in the Controlled Substances Act.
This announcement comes on the heels of NCIA’s successful 10th Annual Cannabis Industry Lobby Days held in mid-September, where 100 cannabis industry professionals, representing small and medium-sized businesses including social equity operators, met with more than 100 Congressional offices to discuss barriers faced by the industry stemming from marijuana prohibition.
It’s no coincidence that when NCIA members show up to D.C., big things happen! Make sure to stay informed as we head towards the lame duck session via our newsletter and social media platforms and don’t forget to register for NCIA’s upcoming 11th Annual Cannabis Industry Lobby Days in May 2023!
Claybourne Co. Takes Home the NCIA’s Best of 420 Award Live at the Clio Cannabis Awards Ceremony in Las Vegas
Just two short weeks ago, the NCIA’s Marketing & Advertising committee proudly announced Claybourne Co. as the winner of the second annual Best of 420 Award for the brand’s “Rolling with Claybourne Road to 420” campaign live from the MGM Grand in Las Vegas during MJ Unpacked.
During a wonderful evening hosted by Michael Kauffman, MAC member and Executive Director of the Clio Music and Clio Cannabis programs,Kary Radestock, MAC committee chair, presented the Claybourne Co. team with a Clio trophy recognizing the brand’s creativity, community impact, and the overall success of their “Stash and Grab” merch drops spread throughout California highlighting the launch of the brand’s statewide delivery program.
Claybourne Co. celebrated California locations which have very few dispensaries, also known as “Pot Deserts,” and gave the cannabis community an opportunity to come together.
Photo by David Becker/Invision for Clio Cannabis Awards/AP Images)
The MAC committee had many in attendance including Vice Chair Eric Becker of MadisonJay Solutions, Chair Kary Radestock of Hippo Premium Packaging, committee member and Clio Cannabis Executive Director Michael Kauffman, Committee Organizer Allison Disney of Receptor Brands, Best of 420 subcommittee lead Tara Coomans of Avaans PR and member Vanessa Valdovinos of HUSH.
Congratulations to all the nominees and we look forward to celebrating the “Best of 4/20” again in 2023! Stay tuned for more details to be announced in the coming months as we’re excited to continue providing this platform to elevate the industry’s most successful, creative, and community-focused campaigns next year.
If you’re interested in contributing to these efforts (and other special projects like it) then we invite you to join the association and apply to participate on one of our 14 member-led committees this coming term. Complete details will be released later month and applications to apply for the 2022-2023 term will open up in early December for all annual NCIA members in good standing.
Don’t forget! Blooming and Evergreen members are automatically guaranteed a seat (single or multiple) on one of our 14 sector committees. If you want to take your industry involvement to the next level, now is the time. Don’t pass up this opportunity to enhance your team’s leadership skills and expand their professional networks all while providing the opportunity to effect change and develop best practices to shape the future of our industry.
Photo by David Becker/Invision for Clio Cannabis Awards/AP Images)
What happens in Vegas certainly stays in Vegas but if you’re really looking to relive the magic then you can view the full album of 2022 Clio Cannabis Award winners here. Plus learn more about the other 2022 Speciality Award recipients honored at the event including NCIA’s Best of 4/20 marketing campaign contest here.
Video: Insights From NCIA’s 10th Annual Lobby Days
“I think it was really successful on all fronts.
Whether it be the networking aspect, VIP access to key decision makers, or just the ability to get to know people both fellow cannabis business owners and congressional leaders.
Lobby Days was a perfect example of really putting the membership into work and seeing what it is that you pay for.” – Chris Jackson, NCIA Board Member
Member Blog: Top 6 Pathogens Seen in Cannabis Plants
By Angel Fernandez and Felipe Cisternas, MyFloraDNA
Pathogens cause diseases when looking for a host body to infect. They come in diverse forms: bacteria, fungi, worms, viruses, and also prions. Pathogens are one of the significant threats to cannabis fields. These silent visitors may cause your plants to produce fewer trichomes, small buds, or even death.
Identifying each pathogenwill help to understand how each of them propagates, its symptoms, and its consequences. In this blog, you’ll find everything you need to know about:
Hop Latent Viroid (HLV) is a single-stranded infectious RNA that interferes with cannabis plant growth. Once the Hop Latent Viroid has infected the plant, the obvious sign of infection is dudding, which is when the plant grows smaller, shorter leaves in the process. HLVcan also cause other symptoms, such as yellowing, and necrotic and malformed leaves.
These plants will have fewer traces of trichomes in their structure. Detecting HLV on time is crucial to avoid an existential threat to the entire garden.
Botrytis Cinerea
Botrytis Cinerea, or bud rot, is a fungus that damages the tender parts of plants in areas of high humidity. This necrotrophic fungus will invade damaged tissue. The symptoms include smaller buds, the development of gray mass spores, and brown, water-soaked spots found on leaves. A major consequence of this fungus is that it can kill cannabis plants within a week.
Lettuce Chlorosis Virus
Much like Botrytis Cinerea, Lettuce Chlorosis Virus can potentially destroy an entire garden. Likewise, Lettuce Chlorosis Virus occurs in lettuce grown in southern California. The plants change into a frail yellow color. They will become very brittle and stunted. One way to prevent the virus from spreading is to take a sample of tissue from a cannabis plant and perform qPCR tests to make sure the plant is virus free.
Cannabis Cryptic Virus
Cannabis Cryptic Virus is a double-stranded RNA virus causing subtle symptoms to plants. Some of these symptoms include smaller flower quality and stunted growth. Thus, this virus can affect plants by producing fewer terpenes, cannabinoids, and trichomes, which are three essential components that serve different purposes for cannabis plants.
Alfalfa Mosaic Virus
Another pathogen is Alfalfa Mosaic Virus, the virus starts by killing cells within a plant and this can be a potential problem for groups of plants. Aphids, small insects, will begin to infect one plant after another as they move and transmit the virus instantly. Seed transmission is also a possibility. There’s no known cure so it is best to care for plants to avoid infection from this type of virus. The symptoms are the same as many of the previous viruses and diseases; stunted growth, slower yield, and calico or yellow color is typically seen on leaves. The good thing is that this can be detected on time by performing serological tests, or antigen and antibody tests to help prove immune status.
Beet Curly Top Virus
Lastly, Beet Curly Top Virus is a dangerous plant virus containing a single-stranded DNA that can affect all kinds of plants, especially cannabis plants, giving them a serious infection. Symptoms include showing a yellow color with purple veins, leaves beginning to curl, seedlings dying out, and deformation beginning at the buds. Since this virus contains a protein carrying a unique code that allows for host cell replication if the virus is not detected on time the cannabis plants will die.
Recognizing the danger these pathogens pose to cannabis plants, and acknowledging their potential to prevent cultivation is very important for growth and success.
Author: Angel Fernandez, CEO & Co-Founder at MyFloraDNA. “It is time to fill in the gap between DNA Sciences and Agriculture. MyFloraDNA is willing to show the huge opportunities that exist for modern genetics in agriculture. Now, it is time for another agricultural revolution”
Co-author: Felipe Cisternas, Intern at MyFloraDNA
Editor: Ashlyn East, Intern at MyFloraDNA
About MyFloraDNA: We are a genomic laboratory based in Woodland California, delivering modern genomics for the cannabis industry. MyFloraDNA provides data-driven decisions to help breeders increase their plant yields.
Our services include Trait detection (cannabinoid profile and sex/gender ID), Pathogen Detection, and Genetic Validation Services. We offer breakthrough solutions using the inner power of your plants.
Who asks if you think you have an infection in your garden?
We highly recommend you consult with DNA Laboratories. They will guide you through the process, test your plants, and let you know if they are infected with HLV or not.
Member Blog: Report Shows Inflation Will Reduce Dispensary Profits – Here’s What You Should Do
A new survey from CBD Oracle found that if inflation drives cannabis prices up, most customers will start to buy less cannabis. Unfortunately, inflation isn’t going anywhere anytime soon, currentlystanding at 8.3%, and things are very competitive for both dispensaries and growers. Plus, the survey shows that the fear that customers will go to a competitor if you raise prices is actually very justified. So what can companies do? We’ve put together some suggestions that play on consumer psychology to help you stay profitable.
The Survey: Why It Looks Bad for the Industry
Thesurvey from CBD Oracle asked 1,450 Americans in adult-use states about their buying habits and how they may change with inflation. While there were many results, the most interesting ones concerned how people would respond to more inflation and the price of cannabis increasing.
They found that 54% of respondents would buy less cannabis if prices increased as a result of inflation. Although over a third (37%) would buy around the same amount, it’s clear that there will be some impact on companies’ bottom lines. The survey also asked about the maximum amount people would be willing to pay for an eighth (around 3.5 g) and found that while 83% would pay $30, only 57% would still buy at $40.
But with increased prices for everyone from growers to dispensaries, it’s difficult to make ends meet at current prices. Mature markets like Colorado have an even bigger issue, with more than enough stock and tons of competition, so increasing prices may really feel like a gamble. The situation is totally unsustainable, andaround 30% of dispensaries will be raising prices in the near future, if they haven’t already.
Andrew Livingston, Director of Economics & Research at Vicente Sederberg commented to us, “Cannabis is clearly not ‘inflation proof.’ Companies struggle to operate profitably as their cost of labor, distribution, and input ingredients climb along with prices across the rest of the economy.”
Raising Prices While Retaining Customers: A Guide for Dispensaries
The survey shows that the problem is on the horizon, but what’s the solution? Here are some suggestions.
Use Price Anchoring
Anchoring is a very useful psychological concept for dispensaries, and there aremany ways you can benefit from it. The way it works is really simple. Imagine you have a “regular” price on the tag crossed out, and a sale price below it. Even if the sale price is still higher than customers might want to pay, customers note the crossed-out price and then look at the other relative to the original amount. So if your eighth is labeled “$35 $25,” customers “anchor” onto the $35 and the $25 seems like a bargain. This specific type is called strike-through price anchoring.
Anchoring Through Product Grouping
Price anchoring can be very powerful when used intelligently. For example, you could have your biggest-selling product on the shelf, but with a much more expensive strain beside it, ideally marked and labeled such that it’s hard to ignore. While very few customers will pay for that $50 eighth, that will make the $30 one sat beside it look much better.
Costco-Style Anchoring
In this approach, you arrange your store so that higher-price items greet customers – again, made hard to ignore through ads and positioning – and they anchor onto higher prices. Then as they make their way into the store and see your regular prices, they seem cheaper, even if they haven’t changed or have even increased.
Raise Prices Elsewhere to Keep Cannabis Cheap
You can also try to balance less profitable products out with other items. AsMcKinsey & Company suggests, raising prices on secondary and tertiary items (think grinders, bongs, vape pens, and other accessories) can help you recoup losses on key-value items (cannabis products). Combined with other approaches, this can be a clever way to boost profits while minimizing the risk customers will simply go elsewhere for weed.
Focus on Your Brand
With over half of dispensary customerssticking to the same seller, one way to minimize the impact of inflation is to make your brand their brand. Shopify’sreport on the Future of Retail recommends focusing on your brand story (why are you in business? What sets you apart from the competition?), showing that your values align with customers’ and treating your employees as a “brand audience.” If you educate your employees about your brand, you will make them brand evangelists, improving customer loyalty as a knock-on effect.
Cut Costs Wherever Else You Can
Simply reducing costs on packaging – child-proof plastic packets rather than glass, for instance – can help you stay in profit without pushing costs to customers. Freezing hiring or even laying off staff is another alternative. This isn’t ideal, but if there are ways you can streamline, automate or digitalize processes, you may be able to cut back until the economy gets back on its feet.
Collect Data and Adapt
Arguably the most important thing you can do alongside any of these changes is to improve your data collection and response process. This is simply so you know the impact of the interventions as quickly as possible. You need to combine this with an enhanced decision-making process so you can make company-wide changes quickly and efficiently. It’s unlikely you’ll be able to make one set of changes and leave it that way, so set up systems to streamline the process for the future.
Conclusion: Remember, We’re All in This Together
With the report showing tough times are likely ahead for the cannabis industry, the most important thing to remember is that basically every dispensary in your state is in the same boat. If you’re friends with any other businesses in your area, talk to them about it and how they’re planning on responding. If prices must rise, it’s much better if you can present a united front to consumers. One dispensary raising prices might be a death sentence; all dispensaries raising prices is just inflation, plain and simple. Be up-front with each other and customers, and you’ll be surprised at how well you can pull through.
Lee Johnson is a writer at CBD Oracle who has been covering science, vaping, and cannabis for over a decade. He focuses on research-driven deep dives into topics ranging from medical uses for CBD to industry and user statistics, as well as general guides and explainers for consumers. He is a passionate advocate of both CBD and cannabis, and a strong believer in informed choice for consumers.
CBD Oracle is a cannabis consumer research company working to improve the safety and transparency of cannabis products, producing in-depth research pieces, along with long-form analysis of social and legal issues.
Member Blog: How Brands Can Help Cannabis Decriminalization
There has been a steady movement for the decriminalization of cannabis worldwide. Many organizations call for their governments to allow recreational and medical cannabis, and it’s hard to deny how valuable the cash crop can be for the local economy. Learn how some cannabis brands are contributing to decriminalizing cannabis and making an impact.
As it stands, 19 U.S. states have fully legalized cannabis, and another 19 have medical marijuana programs. While this is fantastic progress, it’s still leaving many people convicted of drug crimes, medical patients, and minorities behind. While some places go the extra mile, there are still many places where it’s a punishable crime with the smallest amount of cannabis. Cannabis laws continue to evolve to protect users, such as the new California law that protects employees from smoking outside work hours.
A bill to decriminalize marijuana passed in the U.S. House in April, but there’s not a lot of hope that Congress will take it up. However, the fact that it was proposed shows that recreational and medical cannabis is becoming closer to the mainstream.
Global Cannabis Decriminalization
Canada, Mexico, South Africa, Thailand, and Malta have legalized adult-use cannabis. The list is relatively short and shows that there’s still progress worldwide.
It’s become clear that many think it doesn’t make sense for people to go to prison for cannabis possession. Programs have been set up in most states and some countries to expunge cannabis possession records and free people who are locked up unjustly.
Here’s a quick introduction to some of these programs and how states, businesses, and individuals push cannabis decriminalization and legalization forward.
States Create Social Equity Programs
A common critique of the cannabis industry is that it’s dominated by white people who were never negatively impacted by anti-marijuana laws. Social equity programs in many states are working hard to level the playing field.
While each state has different qualifications, eligible people must live in an area strongly affected by high arrest and imprisonment rates for cannabis activity. Applicants might also receive extra assistance if they were arrested or convicted of marijuana crimes before legalization.
Some businesses also offer reduced product prices, grants, and loans for cannabis enterprises founded using social equity programs. This makes it easier for minorities to get the funding they need to start the industry.
Programs To Help Minorities with Cannabis Jobs
Not everyone who wants to get involved in the cannabis field is interested in running their own business. Some organizations are also making it easier for people of color to find jobs in the field.
The Minority Cannabis Academy is a New Jersey program that helps young Black Indigenous people of color find their vocation in the cannabis industry. It trains them to work as budtenders in existing dispensaries, giving them a leg up for employment.
In Illinois, cannabis companies can expedite their application for a license if the majority of their staff has been convicted of a cannabis-related offense in the past. This incentivizes businesses to hire minorities and people who need help from these programs.
More programs like these should be developed nationwide if we want a positive representation of BIPOC in the cannabis industry.
Grants Given to Provide Legal Assistance for Expunging Nonviolent Cannabis Crimes
Having a marijuana conviction on your record can have lasting consequences. Drug convictions come up in background checks, and since they carry a significant stigma, people can lose out on employment opportunities when a company judges them harshly for their past.
A cannabis conviction can also make it difficult to rent an apartment or buy a home. Plus, people with drug convictions have been denied student loans and other loans from financial institutions.
When Illinois legalized cannabis in 2019, it was important to lawmakers that people who were convicted for marijuana crimes previously were able to clear their records.
An excellent organization focused on eliminating people’s cannabis records called the Illinois Equal Justice Foundation is taking a step forward. They will award over $1.4 million in grants spread throughout 18 organizations in the state to help rid people of their cannabis records. The funding will assist legal aid groups, so they can represent people in court and are committed to educating people about their expungement options.
Thailand has pushed its efforts even further. When the country delisted cannabis as a narcotic in June, they also released 3,071 inmates who had been convicted of cannabis-related crimes.
Canada has issued pardons for people with previous marijuana convictions for several years. The process can be slow, but the government feels strongly that these people should be released, and their records wiped clean.
These models show that it’s possible to legalize marijuana while still caring for people whose criminalization has been negatively impacted. Experts are hopeful that President Biden will free individuals in jail for marijuana possession, but the future in the United States remains unclear.
How Brands Can Help Impact Positive Change In The Right Direction
King Palm is a cannabis smoking accessory brand that has created a Last Prisoner Project rolling tray to help spread awareness of that non-profit organization.
This cannabis smoking accessory brand is donating to the Last Prisoner Project. This nonprofit organization is committed to freeing people convicted of marijuana-related crimes.
The organization works hard to advocate for bills that would free people from prison for marijuana offenses, and once people are freed, they help them integrate back into their communities.
Expungement Assistance
Many states are setting up expungement assistance programs that anyone can access. The process can take time and be confusing, but many people find it extremely worthwhile.
In 2021, Michigan passed the Clean Slate Act, which expanded the types of crimes that can be expunged. Some expungements will even be automatic under the law. The state says hundreds of thousands to millions of people are now eligible for their criminal records to be wiped clean.
Another strong member of the National Cannabis Industry Association is Cannabis Equity Illinois. They help community members expunge or seal their criminal records for cannabis and also advocate for automatic expungement. They also provide Know Your Rights seminars, so no one is criminalized for cannabis use.
Looking for help expunging your legal record with cannabis? Many areas have expungement events, and you can find exactly what you need to do on your state’s website.
Support for cannabis decriminalization is growing, but there’s still a long way to go. Luckily, many governments, businesses, and nonprofit organizations are doing their part to make cannabis mainstream and help minorities make their way up through the budding industry.
Mack Bush (they/them) is a freelance writer who is passionate about sharing the joys of cannabis with the world. They manage their fibromyalgia with medical marijuana, and it’s opened up new doors and improved their quality of life. They live in Grand Rapids, Michigan with their cats, Rigatoni and Jasper. Find out more about their work at mackbush.com.
King Palm is one of the leading cannabis companies in the world for joint wraps, pre-rolled cones, and rolling papers. Their specialty palm wraps are made from Cordia leaves and allow you to get in touch with nature while you smoke. They also create quality smoking accessories, including electronic devices like concentrate vapes and nectar collectors, as well as lighters, rolling trays, grinders, and ashtrays. Find out more about their products at kingpalm.com!
Committee Blog: Four Tips for Cannabis Businesses to Maintain Cannabis Friendly Financial Services
by Kameron Richards and Steven Schain Members of NCIA’s Banking & Financial Services Committee
Obtaining legitimate, cannabis-friendly financial services is among the cannabis industry’s biggest hurdles. Obtaining financial services is challenging for dispensaries, marijuana grows, and testing labs but it could also be an obstacle for non-plant touching businesses or individuals engaged in the cannabis industry. Without cannabis-friendly financial services, individuals and businesses related to the cannabis industry are deprived of simple financial solutions, like checking accounts, resulting in large amounts of cash being held at company facilities or the operator’s residence, posing significant risks.
Because only a small amount of insured banks and credit unions offer cannabis businesses financial services, finding cannabis-friendly financial services offered by FDIC or NCUA/CUNA institutions is challenging, and following a certain approach may fortify the longevity of a relationship with a financial institution.
Know Your Company Information and Banking Needs
Thorough onboarding initiates the account opening process for cannabis companies seeking financial services. Cannabis-friendly financial institutions exercise enhanced due diligence at account opening for compliance purposes, which will be further discussed in this article.
Financial institutions may require information on state licensing, corporate structure, and governance documents. Institutions generally collect information regarding the company’s underlying products and whether those products or services violate The Controlled Substances Act (“CSA”). Information collected during the onboarding process often determines the institution’s fee, risk-based categorization, and willingness to provide financial services to a particular cannabis company.
During the onboarding process, cannabis companies should determine if the financial institution provides all services necessary for its specific operation. The services offered by cannabis-friendly financial institutions may vary based on its risk tolerance.
Know Compliance Requirements and Cannabis-Specific Programs
Financial institutions serving the cannabis industry must comply with The Bank Secrecy Act’s (“BSA”) requirements set forth in the Treasury Department’s Financial Crimes Enforcement Network’s (“FinCEN”) BSA Expectations Regarding Marijuana Banking (FIN-2014-G001) (“FinCEN Guidance”). To mitigate the possibility of money laundering, institutions assemble extensive risk-based BSA programs centered around assessing the risk of each cannabis account and detecting and reporting “Red Flags” set forth by FinCEN Guidance.
To understand the constraints under which financial institutions are forced to operate, cannabis companies should familiarize themselves with relevant cannabis industry regulatory guidance and, if possible, structure its operations to ease its financial institution’s compliance efforts. Further, cannabis companies should understand any contractual terms and operation of any specific cannabis programs required by its financial institution (e.g., participation in cannabis-specific programs to support loan approvals, liquidity management or the coordination of cash courier services).
Know the Risk-Based Approach
FinCEN Guidance requires institutions to perform enhanced due diligence on cannabis companies, because the risk category of each cannabis account is determined during the onboarding process, institutions are required to obtain corporate and state licensing documentation and detect any negative news on the potential account signers and the business.
Because there is no mandated risk-based structure for institutions to follow, it is critical that cannabis companies know its institution’s specific risk-based structure. Further, if a cannabis company is utilizing more than one institution, it should understand that each institution’s risk-based categorization may have specific factors or considerations. Some institutions use a tiering structure (which can vary by institution) or make this determination based on the direct or indirect relationship that the account’s source of funds has with cannabis prohibited by the CSA. An institution’s risk-based categorization could determine an account holder’s compliance obligations or eligibility for financial services such as lending, treasury services, payment processing, and 401(k)/retirement solutions.
Know What Could Cause Account Termination
After completing the onboarding process and placing cannabis accounts in the requisite risk profile (which may vary among institutions), institutions are obligated to conduct ongoing enhanced due diligence on cannabis accounts in accordance with the risk each account poses.
This enhanced due diligence encompasses staying abreast of corporate changes, confirming that all licenses are up to date and conducting periodic negative news checks that indicate FinCEN Guidance “Red Flags.” It can also include a litany of happenings that cannabis account holders may not be aware of. While cannabis account signers may be compliant, without any negative news on them or their business, their institution could also close an account due to adverse information from tax and state licensing authorities or wrongdoing by employees or vendors. Cannabis account holders should also be aware of transactions prohibited by its institution’s policies and procedures like commingling funds between non-plant touching and plant touching accounts or transferring funds to and from vague accounts at unaware institutions unwilling to serve the cannabis industry.
Cannabis account holders with multiple relationships should be aware that each institution’s closure protocol may vary in response to adverse information or conducting transactions prohibited by internal policies and procedures (account termination terms are often contained in the depository agreement between the institution and cannabis account holder).
Conclusion
Beyond assisting a business’ core functioning, maintaining relationships with legitimate financial institutions leads to strategic advantages for a cannabis company and its owners and operators, like financing or payment processing.
Further, because FinCEN requires institutions to monitor and report cannabis account transactions and file a Suspicious Activity Report (SAR) when a cannabis account is opened or closed or if “Red Flags” are detected; cannabis companies can protect their accounts and businesses by knowing applicable laws and regulations and their institution’s cannabis-specific programs’ policies and procedures.
NCIA Accepting Applications For 2023-2025 Board of Directors Term
NCIA has extended the application deadline for members seeking to apply for a seat on our board of directors. We are now accepting applications for eligible candidates to apply for the board through Friday, November 25, 2022.
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.
Current NCIA members in good standing are eligible to apply for a seat on the board. NCIA members who are interested and qualified to serve on our board are encouraged to submit an application for review by our nominating committee before the November 25 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. Candidates must be fiduciaries of a NCIA member-business
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 member business at any level of membership or must be a representative of the business that has been appointed to serve by a fiduciary. Candidates must submit an application online by November 25.
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 more than 1,000 member businesses. In general, the NCIA board meets in person twice and conducts 2-3 video conferences per year.
How Are The Board Positions Selected?
Once the application period closes, NCIA’s Nominations Committee will convene to carefully review and score all applications. The committee will ultimately select a slate of nominees to fill six (6) available board seats that are best suited to bring additional talent, resources, and diversity to our growing organization, based on their qualifications.
Our Nominating Committee will be comprised of the chairs of our 14 member committees as well as a select number of current board members whose terms are not expiring this year. Once the Nominating Committee selects the slate of six, members will be notified at the end of this year.
Last week, 100 NCIA members traveled to our nation’s capital to execute more than 100 Hill meetings in one day. We mingled with members of Congress, lobbied legislative staff, and rendezvoused at some fabulous receptions. Keep scrolling for some photos and highlights, and see why you don’t want to miss our 11th Annual Lobby Days in May 2023!
Many thanks to everyone who participated and made the event possible, including our sponsors and DEI Scholarship attendees.
Pre-event:
Planning and executing a fly-in is no small feat – especially with COVID restrictions! NCIA’s government relations team, Michael Correia, Michelle Rutter Friberg, and Maddy Grant worked diligently to ensure that our members had a number of impactful meetings. We prepped NCIA members with virtual training and connected lobbying teams ahead of time.
Welcome Reception:
After touching down, our attendees met at Player’s Club D.C. for a night of games, networking, and celebration! NCIA awarded Congressman Ed Perlmutter (D-CO) the Lifetime Legislator Achievement Award for his tireless work and advocacy on behalf of the cannabis industry, and in particular, his work on the SAFE Banking Act. Rep. Perlmutter is retiring so we were thrilled to be able to chat with him and celebrate the progress this topic has made.
Group Photo:
Attendees gathered in the morning at the Peace Circle to connect with fellow teammates and to pose for our annual “class photo!”
Hill Meetings:
Over the course of six hours, we were able to execute more than 100 congressional meetings! That includes priority Senate offices, committees of jurisdiction, and House offices.
Press Conference:
NCIA attendees, the media, and members of Congress gathered at the “Senate Swamp” (yes, seriously!) for a press conference on passing the SAFE Banking Act. Lead sponsor Sen. Jeff Merkley (D-OR) spoke on the need for reform, while his Republican counterpart Sen. Steve Daines (R-MT) sent a quote due to scheduling conflicts. Rep. Ed Perlmutter (D-CO) also joined us again to call on the Senate to pass SAFE.
Closing Reception:
After an incredibly productive day, NCIA members were joined by Rep. Earl Blumenauer (D-OR) and Rep. Nancy Mace (R-SC) for a reception just steps from Capitol Hill. Their message was clear: cannabis is a winning issue for both parties!
Participate in the Cannabis Voter Project on National Voter Registration Day!
Cannabis Voter Project is working with cannabis retailers and brands to get out the vote on National Voter Registration Day on Tuesday, September 20, 2022.
As a cannabis industry operator, the importance of having your voice heard in the political sphere likely crosses your mind on a daily basis. The 2022 midterm elections are right around the corner, and it’s the perfect time to encourage your customers to also be empowered and informed this November at the polls.
NCIA is happy to partner once again with HeadCount’s Cannabis Voter Project, which is a national initiative to increase voter turnout within the cannabis community. When citizens are informed and engaged, we grow our power for the future.
We’re inviting cannabis community leaders to join us on National Voter Registration Day (Tuesday, September 20) for a national day of action. That means hitting your email lists, SMS lists, social media outlets and other comms channels with a simple call to register to vote. Below is suggested messaging as well as links to social media assets.
NCIA members interested in participating can start by reviewing this kit, which also includes information about the initiative.
The kit includes assets like graphics, dedicated links, and suggested copy to directly engage your community. You will also have the opportunity to be listed as a partner on the Cannabis Voter Project website.
There is no cost and no obligation.
If you’re interested in more information, please contact Sam at samd@headcount.org.
Member Blog: ESG Initiatives and Potential Impacts on Cannabis CRE
Environmental, Social, and Governance (ESG) initiatives are central to the evolving business landscape as more organizations dedicate resources to amplify their social impact, execute on purpose-driven goals, and ultimately create long-term value.
Pressure from stakeholders and shareholders has been instrumental in transforming how organizations are planning for the future. In the Accenture Future of Work Study 2021, 65% of employees believe organizations should be responsible for leaving their people “net better off” through work and 71% of consumers believe ethical corporate practices and values are an important reason to choose a brand. But even beyond this shift in demand for company transparency and a more defined investment in communities from corporations, ESG reporting will soon be a necessity for public companies and a variety of financial organizations.
The Securities and Exchange Commission’s climate-related disclosure earlier this year is a major shift in how companies will be structured requiring corporate entities to proactively integrate ESG into their business model.
Though the proposed rules will most likely lead to legal challenges, accepting the realities of where global business stands today and the environmental issues communities are facing should be at the forefront of every cannabis business, whether they are public or private. There will also inevitably be opportunities that develop from these policies to engage with stakeholders and increase value.
Recent data illustrate the positive results of adopting new standards and reporting methods. According to the Accenture Future of Work Study 81% of sustainable stock indices outperformed their peer benchmarks in 2020. ESG focuses on the Triple-Bottom-Line principles, which essentially advocates for a balance between people, profit, and planet when considering any program or project within an organization. Sustainability professionals who have been advocating for both ESG and Triple-Bottom-Line principles will likely not be surprised by these statistics, as their focus on a long-term, balanced approach to creating value can be less subject to the waxing and waning fluctuations that come with the single-bottom-line approach of focusing only on short term profit.
ESG in Cannabis Real Estate
It is essential for cannabis companies to make ESG initiatives a priority as more investors look to these frameworks as potential predictors for future success. Already some cannabis license applications are requiring environmental impact statements and state-level environmental compliance documentation.
The cannabis industry also has a unique opportunity as a relatively young and emerging industry. Many cannabis companies already have the capacity and infrastructure to adapt swiftly to changing regulations. In the new era of ESG, cannabis corporations are in the position to make these principles a part of their core narrative early on and become more attractive to investors.
In commercial real estate, here are some of the most relevant ESG initiatives to consider.
ENERGY MANAGEMENT (e.g. Utility Installation & Efficiency)
WATER & WASTE WATER MANAGEMENT (e.g. Water Use & Treatment)
PRODUCT DESIGN & LIFECYCLE MANAGEMENT (e.g. Building Operations)
PHYSICAL IMPACTS OF CLIMATE CHANGE. (e.g. Indoor Air Quality)
These are based on the Sustainability Accounting Standards Board’s (SASB) materiality finder for real estate, which also provides insight across a broad range of industries for those interested in other sectors.
There are many ways to begin monitoring and collecting data that will help provide a clearer picture of a cannabis facility’s operational efficiency. For facilities already existing in the cannabis ecosystem, property owners and operators should consider investing in eco-friendly waste management initiatives, repurposing materials when possible, and ensuring recycling capabilities at every operation. Utilizing technology platforms to track water consumption and overall environmental performance will allow an operation to investigate what opportunities exist to reduce energy use by replacing equipment or introducing more natural ventilation into spaces to reduce heating and cooling use.
For those in the early stages of a cannabis real estate project, industry professionals should make ESG initiatives a part of their buildout strategy from the beginning. This means addressing the potential physical risks and impacts on a building where you’re looking to develop. Is the property in a flood zone and at risk of rising sea levels? Is the potential building site exposed to other natural disasters like wildfires?
Many of these environmental and climate-related risks also intersect on a social level. In cannabis real estate, companies should consider whether a building and its materials are safe for workers and the larger community. For example, due to changing weather patterns and increasing temperatures, air quality may decrease or there may be extended periods of drought. Planning ahead to mitigate some of these risks is essential, from considering the introduction of cisterns to collect rainwater during extreme weather that can be repurposed in drier seasons, as well as on-site green spaces and rooftop gardens that can generate cooler temperatures while providing a welcoming environment for employees.
The key to preparing for ESG requirements and ensuring that your organization is ready to tackle these issues is to incorporate these specific needs directly into project objectives and having experts on the project team that understand both short-term requirements and long-term opportunities.
Overall, cannabis real estate needs to be developed with geography and locality risks in mind. It’s not only a necessity to make energy-efficient and sustainable strategies a part of a facility’s infrastructure, but also consider where and how that property will be impacted in the future.
Bryan McLaren serves as the Chairman and CEO of publicly traded Zoned Properties, Inc. (ZDPY). As a licensed Realtor, certified Green Roof Professional,and former City Sustainability Commissioner, with multiple Masters degrees focused specifically on Sustainable Development, Bryan has navigated state regulatory programs for environmental projects and cannabis commercial real estate projects nationally across hundreds of development projects.
About Zoned Properties, Inc. (OTCQB: ZDPY):
Zoned Properties is a leading real estate development firm for emerging and highly regulated industries, including regulated cannabis. The company is redefining the approach to commercial real estate investment through its integrated growth services.
Headquartered in Scottsdale, Arizona, Zoned Properties has developed a full spectrum of integrated growth services to support its real estate development model; the Company’s Property Technology, Advisory Services, Commercial Brokerage, and Investment Portfolio collectively cross-pollinate within the model to drive project value associated with complex real estate projects. With national experience and a team of experts devoted to the emerging cannabis industry, Zoned Properties is addressing the specific needs of a modern market in highly regulated industries.
Zoned Properties is an accredited member of the Better Business Bureau, the U.S. Green Building Council, and the Forbes Real Estate Council. Zoned Properties does not grow, harvest, sell or distribute cannabis or any substances regulated under United States law such as the Controlled Substance Act of 1970, as amended (the “CSA”). Zoned Properties corporate headquarters are located at 8360 E. Raintree Dr., Suite 230, Scottsdale, Arizona. For more information, call 877-360-8839 or visit www.ZonedProperties.com.
Social Equity Members Head to D.C. to Lobby for A More Inclusive Industry
by Mike Lomuto, NCIA’s DEI Manager
NCIA is proud to announce that for the first time, thanks to the support of our members, we have awarded nine Lobby Days Equity Scholarships to support our Social Equity members with travel expenses to attend NCIA’s Lobby Days in Washington, D.C., on September 13-14. These Social Equity applicants and operators from around the country are leaders and active contributors to NCIA’s Sector Committees, our DEI Initiatives (particularly policy-related ones), and to advocacy efforts in their local and/or state municipalities.
Lobby Days provides the opportunity for NCIA members to come together to advocate for the issues most important to small cannabis businesses — from SAFE Banking to federal de-scheduling — and to share their personal stories with national lawmakers.
Our delegation includes:
Dr. Adrian Adams, Ontogen Botanicals CBD Ambrose Gardner, Elev8 LaVonne Turner, Puff Couture Michael Diaz-Rivera, Better Days Delivery Osbert Orduña, The Cannabis Place Raina Jackson, Purple Raina Toni MSN, RN, CYT, Toni
We asked our DEI delegation why attending Lobby Days was important to them. Here are some of their responses:
“I want our elected officials to hear my story which gives a voice to so many others, who like me, grew up in areas that have disproportionately borne the brunt and weight of cannabis enforcement. Children and young adults, whose only crime was being poor and of color, faced the indignity of being stopped and frisked hundreds of times. Now after paying the ultimate entry price, we can not get in the door of the cannabis industry because of a lack of banking and lending opportunities that continue to shut us out of the cannabis market.
The de-scheduling of cannabis, the passing of SAFE Banking, or the repeal of IRC 280E all would immediately increase the opportunities for small cannabis businesses like mine to have a true opportunity for success, growth, and economic empowerment of our communities.”
– Osbert Orduña, The Cannabis Place
“As the industry grows and moves towards federal legalization, our elected officials must hear constituents’ voices. It’s important that my energy, face, and voice are present, representing the need for safe banking, health equity, and policies that support federal legalization. As states continue to legalize adult recreational cannabis usage, there will be an increased need for cannabis health equity to address the social, political, and economic conditions in underserved communities.
I’m committed to increasing awareness of the importance of education, employee retention, and community wellness in these communities.”
– Toni MSN, RN, CYT, Founder of Toni NCIA’s Education Committee & Health Equity Working Group
“I have begun to work on lobbying at a local level. Federal legalization, descheduling, decarceration, social equity, health equity, and safe banking are some of the areas that I would like to learn how to lobby for at the national level.”
– Michael Diaz-Rivera, Owner/Operator, Better Days Delivery
“We should not stop at using the SAFE Banking Act merely to provide legal and regulatory protection for financial institutions. That will enable, but not ensure, increased banking services for minority-owned cannabis and hemp companies.
As the regulatory gaps between state and federal governments are addressed, there must be mechanisms to prevent predatory practices while opening access to capital.”
– Dr. Adrian Adams, Ontogen Botanicals CBD
It is important to the NCIA, and its membership for Main Street Cannabis to continue to develop in as diverse, equitable, and inclusive a manner as we can achieve. As the industry has thus far failed at creating tangible Social Equity, it’s important to ensure our efforts this September to include these voices and the communities they represent.
This is where the DEI delegation comes in.
As the official DEI delegation, the Lobby Days Equity Scholarship recipients will provide a foundational understanding of matters related to DEI in the industry for all NCIA members present at Lobby Days. The DEI delegation will ensure that there are members present speaking up on matters of DEI from within an important national trade association and within the context of Main Street Cannabis.
NCIA’s Government Relations team has organized a full day of meetings with Lawmakers and their Offices. New citizen lobbyists will receive online training before the event and are grouped together with experienced industry leaders who can help them find their voice. There will be an opening networking reception for all attendees, and a closing event featuring some of NCIA’s most important allies in Congress.
We are still accepting sponsorships to fully fund Lobby Days Equity Scholarships to ensure our recipients have their travel and lodging expenses covered while in Washington, D.C. Contact MikeLomuto@TheCannabisIndustry.org for more information.
Let’s keep building a better industry together, as we bring our voices to Washington, D.C.
Member Blog: 4 Budtender Onboarding Tips To Help Keep You Compliant
by Tommy Truong, KayaPush
A recent survey by Headset.io found that 55% of budtenders leave their jobs within the first year of employment.* But why?
Some believe improper onboarding could be a culprit.
First impressions matter – and improper onboarding can leave budtenders feeling underprepared and unappreciated. Moreover, budtenders who don’t receive proper compliance training might be terminated due to compliance infractions and could even be at personal risk for their errors.
Luckily, by setting up solid budtender onboardingSOPs that put compliance first, you are more likely to keep great hires – and avoid compliance infractions.
The following information will help dispensary owners implement hiring and training strategies to increase retention, avoid compliance infractions, and simplify dispensary onboarding.
1 – Look into legal before you hire.
Compliant onboarding starts with understanding your budtenders’ requirements to work at your dispensary.
Every state has unique requirements regarding background checks, legal age, and budtender certifications – so it is essential to research each of these elements before you begin the hiring process.
Once you have established your hiring guidelines regarding legal requirements – you can take it one step further and set up an applicant tracking system that is customized to only reach out to applicants who qualify for your set terms.
Using tools that automate these processes will make compliant dispensary hiring easy.
Social equity hiring initiatives in cannabis
While we’re on the topic of hiring for your cannabis dispensary, we would be remiss if we didn’t mention the importance of researching potential social equity programs for dispensary hiring opportunities.
You can use these resources to find qualified social equity candidates for your dispensary based on the state in which you are located.
2 – Have an organized onboarding documentation process.
The next step to a smooth and compliant onboarding process is to know all the forms you need to provide and gather from your new hire.
If you are an American business owner, the forms you will need to collect from your employee include:
W2
Criminal record check verification
1-9
State Tax Form
ID or Passport
Social security information
A void check
A signed employer agreement
Any certifications you have requested they acquire
The forms you will need to share with your new hire include:
Business owners who don’t use employee onboarding software manage a lot of paperwork.
From chasing new hires around for signatures or documents – to figuring out the best way to store things – it’s a time-consuming headache, and it’s not ideal.
Here’s how it works. When a new hire joins, a dispensary owner can share their onboarding link, where their new hire will upload digitized documents directly into the system for central storage.
If any documentation is missing, the system will send a reminder to ensure they provide all the information needed for dispensary owners to stay compliant.
4 – Provide compliance training for budtenders
Compliance training should be a critical part of the budtender onboarding process – but what does that mean?
For budtenders, there are four main areas of compliance to master: How to sell products to customers and with a POS system, how to handle products, and overall regulations comprehension.
Selling products to customers training might include:
Learn how to greet guests in a compliant way
How and when to properly ID guests
Knowledge of strains, potency, and effects
Understanding different types of products based on clients’ needs
POS training might include:
Knowing how to input ID information
Learning how to ring in products correctly
Understanding product limits per customer guidelines
Knowing how to use and report sold products with a compliant POS
Understanding the compliance factors behind customer loyalty programs and incentives
Compliance is one of the most challenging aspects of running a cannabis dispensary – however, if you surround yourself with the right team, use cannabis software built for dispensaries in your state, and check in often on regulatory updates – you will be alright.
Author Tommy Truong is the CEO at KayaPush; the cannabis software helping dispensary owners manage their employee HR, scheduling, and payroll. KayaPush also integrates with leading dispensary POS systems. Tommy loves hot sauce, fried chicken, and running with his Boston terriers
KayaPush delivers an innovative, unified compliance solution that meets payroll and HR needs without compromising speed and accuracy. Implementing KayaPush will save you time and money and help eliminate the financial risks associated with non-compliance.
Video: Defending Main Street Cannabis Businesses
As the only national advocate for small and mid-sized cannabis businesses, NCIA works every day to advance policy reforms favorable to the whole industry — not just the wealthiest few. Hear from NCIA Board Members why our mission and advocacy work is crucial to defending the interests of everyday businesses in the cannabis industry.
We are Main Street Cannabis, not Wall Street Cannabis.
Become a member of NCIA today so that everyone can benefit from cannabis legalization — not just the wealthiest few.JOIN NCIA TODAY
Joining NCIA ensures that your interests are heard in our nation’s halls of power as the rules for national legalization are written. We’re also the only full service trade association in the industry, which means that our members enjoy unparalleled ROI and benefits to help them thrive in an increasingly challenging environment.
Committee Insights | 8.16.22 | Cannabis Consumption Lounges & the Next Wave of Hospitality Disruption
In this edition of our NCIA Committee Insights series originally aired on Tuesday, August 23, 2022 members of Risk Management & Insurance Committee convened a panel of cannabis regulators and legal experts alongside leading event and hospitality operators to provide cannabusiness professionals the inside scoop on new regulations being adopted to manage/establish cannabis consumption establishments.
Dive deep into the ins & outs of Michigan’s cutting edge regulatory structure and learn from those operating in the space across the country with our panel of experts.
Learning Objectives
• Review of leading edge regulatory framework providing a model for MI consumption lounges
• Highlight the license structure for temporary events – how do consumption, sales and/or both formats function within this framework?
• How have these regulations evolved since first adoption?
• Review dram shop liability and offer an educationally lensed analysis
• Discuss how that may or may not be a good framework to apply to cannabis?
NCIA Director of Communications Bethany Moore checks in with what’s going on across the country with the National Cannabis Industry Association’s membership, board, allies, and staff. This week Bethany is joined by NCIA CEO Aaron Smith to talk about the importance of having your voice heard on Capitol Hill at our upcoming 10th Annual Cannabis Industry Lobby Days on September 13-14. Join us every other Thursday on Facebook for NCIA Today Live.
This is your chance to unite with other NCIA members to advocate for the issues most important to small cannabis businesses – from SAFE Banking to federal de-scheduling – and to share your personal stories with national lawmakers who need to hear from Main Street Cannabis businesses.
Watch this video to hear from NCIA’s CEO and Co-founder, Aaron Smith, about why you should attend this most impactful and crucial event next month. Not yet a member? Join today and then make your plans to join us in D.C.
Committee Insights | 8.23.22 | Changing the Game for Women in Cannabis
In this edition of our NCIA Committee Insights series originally aired on Tuesday, August 23, 2022 members of NCIA’s Retail Committee convened an all-star panel of leading investors, entrepreneurs and C-Suite executives alongside retail and marketing experts to discuss how the time to “move the needle” for women in cannabis is gone… It’s time to change the game.
Female executive representation in cannabis has shrunk to 22% in 2021 from 36% in 2019 (below the average 30% in mainstream businesses). Learn how to advance women and tap into the single greatest market opportunity for legalization and sales. Tune in now to get actionable solutions to implement today and get your business and our industry back on track.
Learning Objectives:
• Discover the definition of a female-friendly cannabis retail experience
• Get a suite of actionable solutions to increase success and profitability
• Learn the best career paths in cannabis for female candidates
• Learn where male dispensary buyers are missing the mark
• Identify opportunities across the supply chain to attract women
Equity Member Spotlight: Osbert Orduña – The Cannabis Place
NCIA’s editorial department continues the Member Spotlight series by highlighting our Social Equity Scholarship Recipients as part of our Diversity, Equity, and Inclusion Program. Participants are gaining first-hand access to regulators in key markets to get insight on the industry, tips for raising capital, and advice on how to access and utilize data to ensure success in their businesses, along with all the other benefits available to NCIA members.
Tell us a bit about you, your background, and why you launched your company.
I am a first-generation Latino of Colombian descent, Spanish was my first language and my dad spent most of my youth incarcerated. I grew up in NYC Public Housing projects, and I have first-hand knowledge of the indignity of what it feels like to personally be stopped and frisked nearly 100 times which is what happened to me as a kid and young adult for doing nothing else than being a poor Latino growing up in the hood. I was an Education Opportunity Fund scholar and the first in my family to go to college, where I received a degree in business, and a graduate certificate in law. I earned the designation of Disabled Veteran while serving in Iraq with the United States Marine Corps, and I am also a 9/11 first responder. I retired after a career in public service, and have worked as an entrepreneur for over 10 years, and know what it takes to start a business from scratch, without a rich uncle, generational wealth, or rich financial backers.
In late 2020 and early 2021, I had the opportunity to visit 50 non-MSO recreation and medical dispensaries in five states on the east and west coast. I wanted to learn more about dispensaries and best practices across the industry, but my trip opened my eyes to a different reality. Forty-nine of the dispensaries were owned by white males and one was owned by a white female, not one owner looked like me or shared a similar background. None of these dispensary owners had been stopped and frisked hundreds of times for no other reason than just because they lived in an area with historically high rates of arrests and enforcement from over-policing. Yet they were now engaged in an industry that seemed to exclude us. My trip left me sad but determined to enter the cannabis market so that people who look like me who came from the struggle of the streets, and were collateral damage in the war on drugs could have a chance. I was determined to create a positive example for Latinos and others to follow.
What unique value does your company offer to the cannabis industry?
The Cannabis Place offers a unique value proposition which is our commitment to launching as a union cannabis dispensary on day one. As of yet, we are the only dispensary in the state of New Jersey and the nation to propose this. By launching our business as a unionized shop we are being a partner to our Jersey City, NJ community. Our value proposition promises that we will be a responsible and proactive member of the community that provides union career opportunities with true living wages that will empower our team members to provide upward mobility for themselves, their families, and the greater community. Furthermore, we are engaged as a Workforce Development partner with Cornell University, the Workforce Development Institute, and Hudson County (NJ) Workforce Development Board. With these partnerships, we will develop standardized training modules that will be utilized to train prospective dispensary workers and provide opportunities for those seeking cannabis careers in this new and emerging industry.
Our mission: To provide high-quality cannabis to clients with a consistent product and first-class service they can trust. To build our brand on the core values of client service and care, while maintaining the highest standards of quality, integrity, and community outreach.
What is your goal for the greater good of cannabis?
As the CEO of The Cannabis Place, our primary goal for the greater good of cannabis is to advocate and support a proactive approach to adult-use by providing a local and safe environment to dispense cannabis products. We operate as a social impact cannabis brand and are dedicated to providing consistent access to safe and reliable cannabis products that are ethically grown and sourced. Our aim is to launch the first unionized cannabis dispensary in New Jersey, leading by example, and demonstrating to other businesses that true success is based on placing people over profits.
Our goals are as follows:
Be an accelerator for generational wealth-building opportunities among our employees from the community
Be a reliable source for cannabis education and awareness
Utilize our Community Impact grants to assist and support outreach in areas that have been disproportionately impacted
Our advocacy at The Cannabis Place is based on workers rights, especially organization, fairness and quality healthcare. We believe that it should be easier for people in all job fields to organize. At The Cannabis Place we support the implementation of legislation that will raise the minimum wage floor for all workers in our community, to provide for true living wages that place people over profits. Workers in all industries deserve more from the moment they are hired. Like many others I grew up as part of the working poor, in public housing with limited minimum wage job opportunities, without healthcare and with minimal alternatives to life on the streets. At The Cannabis Place we believe that by providing our workforce with union careers with true living wages and full benefits, our team members, their families and their communities will feel the immediate difference of financial stability, long-term growth, and the impact of upward financial mobility to help them support their family and to build a better life.
What kind of challenges do you face in the industry and what solutions would you like to see?
Latinos are consistently underrepresented in terms of business owners throughout all industries. Now when you focus specifically on cannabis and look at a national level, just 5.7% of all license types are held by the Hispanic community. I have seen challenges in the cannabis industry in two key areas, access to capital and the real estate market. It takes money to make money so if you grew up poor, without generational wealth, no rich uncle, no hedge fund connections or oligarchs to call on, how do you raise funds to have the millions that are needed to launch a dispensary or grow? Next and along the same lines is real estate. A lot of landlords won’t lease to cannabis businesses but unfortunately, our experience has been that again a predatory market exists where cannabis rental rates are 2 to 10 times the normal lease rates for the area. The other option is to buy a commercial parcel which brings us back to issue #1 – access to capital. I am ever the optimist, and I see the Latino community growing in the legal cannabis industry as entrepreneurs, c-suite members, and as leaders in the industry bringing our unique insight and sabor to the industry while creating opportunities for generational wealth for our community. In order to get there, we need to bridge the gap through social equity grants and loans that can help Hispanic cannabis entrepreneurs raise enough capital to start their business, and receiving financial education is also crucial for Hispanic entrepreneurs in multiple phases of the cannabis business planning timeline.
Why did you join NCIA? What’s the best or most important part about being a member through the Social Equity Scholarship Program?
We are a Disabled Veteran and Latino-owned company with a core focus on community impact through social impact so the ability to be a Social Equity Scholarship recipient in an organization like the NCIA, a group who are actually dedicated to ensuring that small cannabis businesses have a seat at the table in Washington, D.C. and beyond, was super important to us. We look forward to learning new information and utilizing networking opportunities to help us grow and succeed in the cannabis industry.
The fact that NCIA is leading change to protect the legal cannabis industry, advocate for our state laws, advance federal policy reforms, and to make this a more inclusive and prosperous space by working together to defend the responsible cannabis industry. Creating more opportunities for small businesses rather than just the wealthiest few is the most important thing for us as members of the Social Equity Scholarship Program.
The Cannabis Place 420 Corp is the first ever Disabled Veteran and Minority Owned Business enterprise to successfully navigate the Jersey City, NJ municipal cannabis dispensary approval process in this new and emerging cannabis market.
Member Blog: The Delicate Issue of Dermal Considerations
Skin-related (dermal) issues from the constant wearing of disposable gloves were among the top complaints revealed in various cannabis workplace surveys. Many employees required to don single-use gloves to conduct a variety of job-related tasks – in the cannabis cultivation process and several other industries – remain unaware of the distinct types and qualities on the market, and how they differ. The quality, fit, durability, and functionality of disposable gloves are determined by several factors, including the type, application, raw materials, and manufacturing processes used to produce them.
Gloves by Type and Dermal Risk
Among disposable gloves, there are three primary types – latex, vinyl, and nitrile, each with differing qualities and risks. Here is a snapshot of each variety, along with their associated dermal risks:
Latex – these gloves are constructed of rubber, a snug fit like second skin that is both highly elastic and resilient. They are mostly worn in the medical industry, where a high level of dexterity and tactility is warranted. However, latex gloves can trigger a Type I hypersensitivity reaction to latex and Type IV hypersensitivity reaction to rubber chemicals. Latex-free nitrile gloves have generally superseded this option in the market.
Vinyl – these cheap gloves are manufactured from brittle polyvinyl chloride (PVC) material, prone to a high rate of defects (rips and holes) in the glove barrier, an immediate cross-contamination risk.
Vinyl gloves are manufactured with plasticizers to soften the PVC, which often contain toxic phthalates and chemicals. Many of these ortho-phthalates have been shown to harm reproductive health and brain development. These threats can be absorbed into the glove wearer’s skin, and leach into the food handled which, in turn, can later be ingested by customers. Phthalates in vinyl gloves are highly restricted in Europe and Japan for food handling and were recently banned by the state of Maine.
Vitrile – a blend of vinyl and nitrile. These gloves should be stronger than plain vinyl gloves and less expensive than nitrile. Due to pandemic-related price increases in gloves, the vitrile option has recently grown in popularity. Buyers should beware of cheap nitrile gloves, blended with cheaper vinyl, yet still marketed as nitrile. Vitrile gloves carry the same risks to the wearer, and the products they handle, as vinyl gloves.
Nitrile – these gloves are among the best choice for the cannabis industry, as they protect against harmful chemical substances, and their puncture and tear-resistant qualities are ideal for complex cultivation and processing tasks. They also provide the highest level of protection and durability as a barrier to harmful chemicals and pesticide exposure.
However, nitrile glove allergies can also occur, posing potential problems for the glove wearer. Cheap and toxic raw material ingredients, which reduce glove manufacturing costs, can also cause occupational skin disease (OSD), such as contact dermatitis and Type IV hypersensitivity to rubber chemicals. Accelerators, added to speed up rubber vulcanization during the manufacturing process, are the typical cause of glove contact allergies.
For glove wearers prone to skin allergies and irritation, higher quality gloves and accelerator-free options are a necessity.
Keeping Your Workforce Safe
There are ways and means of reducing the risk of dermal disorders caused by single-use, disposable gloves. The more frequently gloves are worn, the higher the risk. Below are several ways to mitigate the risk of dermal disorders:
Choose quality nitrile gloves, marketed by reputable suppliers with an extensive history of glove sourcing and experience. Look for well-established company websites, including industry-related blogs, published articles, and resources that demonstrate the supplier’s commitment to quality
Request proof of factory and third-party audits, as well as HACCP compliance certifications
Plan to undergo a commercial trial of glove products prior to committing to bulk purchasing. Any established and reputable supplier should be more than happy to ship glove samples for trial usage
If possible, choose accelerator-free nitrile gloves
Consider your options for glove types. Be wary of vinyl / nitrile-mixed gloves passed off as nitrile – always sample first before you buy
Justine Charneau is the head of cannabis industry sales atEagle Protect, a disposable glove supplier dedicated to the responsible sourcing of quality products that ensure customer safety and impact reduction, ultimately mitigating customers’ risk. Eagle Protect is the only global PPE supplier that is aCertified B Corporation, a designation that a business has met the highest standards of verified performance, accountability, and transparency. She can be reached at justine@eagleprotect.com.
Member Blog: How Technology Can Ensure An Equitable Cannabis Industry
The multi-billion dollar cannabis industry is coming to a town near you. With new states passing adult-use legislation every day, it’s only a matter of time before businesses begin opening their doors nationwide.
In states such as New York, the first cannabis business licenses (CBLs) are being given to people who wereimpacted by the war on drugs and hemp farmers. The effort is a first-of-its-kind approach that is admirable in theory – a positive step toward righting the wrongs that have persistently and unfairly affected people of color – but still leave the door open for challenges in practice.
Simply put, the barrier for entry is too high for most individuals due to the complex and convoluted CBL application process. Between sifting through and submitting thousand-plus page documents and potentially spending hundreds of thousands of dollars to create a perfect, compliant application, new business owners are fighting an uphill battle against multi-state operators (MSOs) who have moved across the country as legalization opens state by state and have the process (and hundreds of thousands dollars needed to afford a dedicated application consulting firm) down to a science.
Legislators may have noble intentions in offering a head-start to people affected by the war on drugs in an effort to correct past wrongdoings and create a distribution of ownership that looks like the people most affected, but if the necessary regulatory framework of the application process is encumbered with more compliance to receive equity benefits, it will be even harder to complete a competitive application – leaving many potential new business owners without a license and the well-oiled machines known as MSOs first in line.
Not to mention the fact that the application process often plays out over years. States will frequently take half a year to review an application and only provide roughly 10 days to fix any deficiencies.
Technology is The Way
While the odds may seem stacked, the technology to close the gap exists and many CBL applicants are finding out how to compete against large MSOs and established players in the market. As someone who experienced everything that goes into the application process, and what is wrong with it, first-hand when I began my career in cannabis, I’ve realized that the only way to effectively compete is by working smarter. Through technology we can create greater access and a level playing field.
There are several key areas where technology (i.e. “working smarter”) is already paving the way for true social equity while applicants embark on submitting a cannabis business license. Document generation, telepresence, language processing, machine learning, artificial intelligence and augmented reality are among areas of interest that savvy CBL applicants can implement into their strategy. By normalizing standard operating procedures (SOPs) across verticals and jurisdictions, companies can provide contextual SOPs directly in front of a user with a simple QR code. Imagine a world where a dispensary employee can access SOPs directly from each piece of equipment or area of a facility with minimal effort simply by scanning a QR code with their tablet.
A Cannabis Industry for All
Laws that benefit a more equitable industry surely help, but in a new industry where the gap between the have and have-nots is already wide and growing rapidly, more steps need to be taken by regulators to eliminate the pay-to-play mistakes that have infested other state cannabis policies such as in my home state of Illinois. In Illinois, there wasn’t a fair cap on the number of CBL submissions for a company, leaving businesses with the most money with an opportunity to submit over 40 times and flood the application pool.
Thankfully, I’m pleased that regulators in New York and New Jersey are doing a better job in this regard, avoiding these unfair situations, but I foresee a highly political zoning situation in New York. Historically, companies that can afford to pay lobbyists and other influential people to get the deals and contracts done, are more successful. I’m not sure what short-term regulatory solution exists for this age-old, persistent issue.
It’s encouraging to see the cannabis legalization movements around the country paired with well-meaning equity and restorative justice initiatives. However, there is still a high barrier to entry presented by the extensive and convoluted cannabis business license application process. Only through advances in technology will this barrier be taken down.
Walter Moore Cognitive Harmony Technologies CEO & CTO, is an accomplished software architect, financial engineer, and entrepreneur residing in the south suburbs of Illinois. He specializes in architecting elegant, compliant, and scalable solutions to complex regulatory environments in the AdTech, FinTech, Digital Assets, and Cannabis industries. He has a Masters of Science in Financial Engineering and undergraduate degrees in Theoretical Physics and Applied Mathematics.
Walter started Cognitive Harmony Technologies in order to support social equity teams and bring change to an industry which has historically whitewashed the past injustices served in its former prohibition, something which he has experienced firsthand in prior decades. As a cannabis business license owner, Walter knows just how difficult it is to put together a competitive application. He developed the CHT platform in order to help lower the barrier of entry for others willing to put in the hard work of assembling an application, but who would otherwise be priced out of the competition.
At Cognitive Harmony Technologies, our proprietary CHT Accelerator platform is paving the way for true social equity in the CBL application process by developing a meticulous roadmap to create a complete and competitive automated application much like tax preparation software generates tax returns, providing live-support, and offering access to a helpful network of architects, realtors and a range of connections. Additionally, we offer this for a fraction of the cost of what the hundred-thousand-dollar consulting firms that multi-state operators employ, and in some cases it is completely free. Cutting-edge technology is the best tool that an everyday, aspiring entrepreneur can leverage to break into the industry, and make the cannabis sector’s leadership as representative and diverse as the consumers.
Our mission is to open the doors for equitable cannabis business ownership by making the application process easy as filing personal income taxes online. The CHT Accelerator streamlines the entire application process into one easy-to-use software platform so you can create a complete and competitive application.Follow us on LinkedIn or visit ourwebsite.
Behind Closed Doors: NCIA at CANNRA’s June Conference
The discussion about the future of cannabis legalization is ongoing, to say the least. Recently, Cannabis Regulators Association (CANNRA) held a two-day conference in early June to gather Marijuana government regulators, trade associations, and businesses. The Cannabis Regulators Association (CANNRA) is a national nonpartisan organization of government cannabis regulators that provides policymakers and regulatory agencies with the resources to make informed decisions when considering whether and how to legalize and regulate cannabis.
Representatives from NCIA participated in the conference – NCIA Board Members Khurshid Khoja (Chair Emeritus) and Michael Cooper (Board Secretary), and we caught up with them in this blog interview to better understand the goals and outcomes of the event.
From a bird’s eye view, what was the overall goal of this conference?
MC: The conference was an opportunity for regulators from around the nation to hear directly from stakeholders on the current and future challenges that face these markets and different models of regulation to tackle them.
KK: I’ll add that our own goals, as the current Policy Co-chairs for NCIA, were to better understand the priorities of state and local cannabis regulators across the country, and anticipate future developments in cannabis policy early on, so we could take that back to the NCIA membership and the staff – especially Michelle Rutter Friberg, Mike Correia, and Maddy Grant from our amazing government relations team.
Let’s talk about who was invited to participate in these panel discussions. From cannabis industry associations to those who regulate cannabis, who else was there?
KK: Michael and I each spoke on a panel. The other speakers included reps from federal trade associations, lobbyists, vendors, and ancillary companies who were helping to underwrite the event (along with NCIA). Given that CANNRA is a non-profit that doesn’t receive any funding from their member jurisdictions, and has a single paid full-time staff member, I thought they were still able to obtain a fairly diverse and interesting set of speakers at the end of the day – including NCIA Board and Committee alums Ean Seeb, Steve DeAngelo, Amber Senter and David Vaillencourt (representing the Colorado Governor’s Office, LPP, Supernova Women and ASTM, respectively), as well as folks from Code for America, Americans for Safe Access, and the Minority Cannabis Business Association, U.S. Pharmacopeia, NIDA, the CDC, and the Alcohol and Tobacco Tax and Trade Bureau, representatives of the pharmaceutical, hemp, tobacco and logistics industries, and public health officials.
Were there any organizations or sectors of the industry that were not in attendance, whether they weren’t invited or just didn’t participate, and why is it important to note the gaps of who was not represented?
MC: No licensed businesses were invited. Instead, organizations that represent industry members were invited. As a result, we felt it was crucial to inform these discussions with the perspective of the multitude of small and medium-sized businesses otherwise known as Main Street Cannabis that have built this industry and continue to serve as its engine.
KK: Sadly, we did not have an opportunity to hear from members of the Coalition of Cannabis Regulators of Color. I can’t speak to why that was, but it was unfortunate for us nonetheless. And while we had some public health officials there, I know that CANNRA Executive Director Dr. Schauer would have preferred to see more of them in attendance.
Across the spectrum of policy and regulations and legislative goals, what topics were covered in the panel discussions across the two-day conference?
KK: We covered a ton, given the time we had, including the federal political and policy landscape; interstate commerce; the impact of taxes on the success of the regulated market; social equity and social justice; preventing youth access; regulation of novel, intoxicating and hemp-based cannabinoids; the prospects for uniform state regulations; technological solutions to improve compliance and regulatory oversight; and delivery models.
What information or perspectives did NCIA bring to the panel discussions that were unique from other participants? What does NCIA represent that is different from the other voices at the event?
MC: There really are a wide variety of perspectives on how best to regulate this industry. We felt it was essential that NCIA give a voice to Main Street Cannabis, the small businesses that so many adult-use consumers and medical patients rely upon. We emphasized, for example, that these are often businesses that cannot simply operate in the red indefinitely, but provide essential diversity (in the background and life experience of operators as well as in product selection and choice). NCIA wants to make sure that the future of cannabis isn’t simply the McDonalds and Burger Kings of cannabis. There are times when consumers want that, but there are also times when they want something unique and different. And it’s crucial that policy not destroy the small and medium-sized, frequently social equity-owned, businesses that provide those choices.
What else was interesting to you about this gathering of minds? Were you surprised by anything, or was there anything you heard that you disagreed with?
MC: There are a ton of different perspectives and approaches to cannabis, and that’s no surprise to anyone who has followed these issues closely because the tensions are very clear in the policy debates that are ongoing.
As the voice for the industry, we sought to urge an approach grounded in reality. Americans want these products. That’s clear from the ballot box and public polling. The question should be about how to encourage Americans to purchase regulated, tested versions of these products.
KK: There was definitely stuff we didn’t agree with – some of it from folks that we otherwise largely agree with. For example, our good friend Steve Hawkins of the USCC shocked a few of us in the audience when he seemed to indicate some receptivity to re-scheduling cannabis on an interim basis, rather than moving to de-scheduling immediately. I think that while rescheduling may benefit scientific research and pharmaceutical development, it could ring the death knell for Main Street Cannabis businesses. NCIA has consistently advocated for de-scheduling rather than re-scheduling.
After two days of panels, did anything new come through these discussions, or were any accomplishments achieved?
KK: I think there’s a growing recognition that addressing social equity solely through preferential licensing and business ownership for the few isn’t enough and that the licensing agencies and regulators that execute social equity policies have a very limited (and often underfunded) arsenal to comprehensively redress the harm caused by federal, state and local governments prosecuting the war on drugs. In my remarks, I said it was time for us to start discussing additional forms of targeted reparation and had a number of regulators approach me afterward to continue the discussion. Candidly, I expected my remarks to fall on deaf ears. They didn’t. That was very encouraging.
MC: There was definite progress. At the end of the day, these cannabis regulators are working hard to try to get this right. But in such a new area, and with so many competing perspectives and voices, their job isn’t easy. We were heartened to see the level of engagement from regulators on these points, including follow-ups to get more information on some of the pain points we identified for small and equity businesses in the industry.
It was definitely rewarding to provide NCIA and our members’ perspectives in a forum like this, and we’re looking forward to continuing to further strengthen NCIA’s relationship with CANNRA and regulators around the country.
Member Blog: What Growers Should Know About Hop Latent Viroid
by Angel Fernandez, María Zuccarelli, and María de Catarina, MyFloraDNA
For many years, growers and breeders have speculated why “dud plants” are seen across different cannabis crops.
It is a fact that cannabis has faced many viral infections. Due to viruses and viroids, some varieties mutated into genetic changes over time, altering the evolution of the plant.
But… how can we detect Hop Latent Viroid (HLV)?
Hop Latent Viroid (commonly known as Dudding Disease) is a single-stranded, circular infectious RNA. It is not a virus. Let us explain the difference:
Viroids only replicate in plants. Also, virusesare more complex than viroids. Viroids are compounded by only RNA, while viruses are composed of a protein capsule enveloping their genetic material.
Viruses infect new hosts only once they enter a host and replicate on it. Viroidsare transmitted through direct contact of a healthy plant with an infected one. Also, can be transmitted by contaminated tools and instruments (gloves, scissors, tweezers, even human hands).
Talking about HLV, we must remember that this viroid is latent, so there are many asymptomatic transmissions. It can spread without symptoms, and you will only realize it when it is too late.
HLV Symptoms:
HLV is a silent viroid, meaning that this viroid may or may not show early visual clues from its presence. Some physical symptoms in cannabis plants are:
What about transmission?
This issue is important, so please take note. If you have any doubts about an infection of Hop Latent Viroid in your garden, TREAT EVERYTHING AS IF IT IS INFECTED. Download here our guide on how to treat infected material.
HLV and other viroids in your garden or greenhouse can spread quickly from infected to healthy plants. The main transmission causes are:
Infected equipment: sterilize the equipment before working on new plants to reduce the possibility of contamination.
Clones: before cutting, we recommend doing a complete pathogen test, to avoid infected clones.
Seeds: this is currently under research, but HLV has an 8% chance of being present in the seeds of an infected mother plant.
Human touch: cultivation managers and staff have to sterilize their hands and gloves before jumping from one plant to another. A simple touch is enough to transmit HLV.
Bugs and pests: bugs and pests are always present, and their bites may transmit HLV, spreading the pathogen through your entire garden in a blink of an eye.
How can you prevent HLV?
Here are some essential tips:
Keep your equipment clean. You can read more about how to sterilize your tools on our Instagram profile.
Make sure you have pests under control
Tissue culture: HLV can travel through the plant’s vascular system and may be left behind in older tissues as plants develop. It can outgrow the problem by producing clones from the infected plant. The more cuttings a grower roots, the higher the chances of selecting a clean one.
Pay special attention when visits come by: HLV may come in a visitor’s hand, glove, or even shoes!
When a plant or leaf enters, please do not accept it unless it has a negative DNA HLV test. It is the only way you can be sure it is not a threat to your garden.
Who asks if you think HLV may be in your garden?
Thank you for reading! We hope you find this information useful. In case of any doubts, do not hesitate to ask us regarding any related topic and download our Complete HLV Guide here. We highly recommend you consult with DNA Laboratory. They will guide you through the process, test your plants, and let you know if they are infected with HLV or not.
Angel Fernandez, CEO & Co-Founder at MyFloraDNA. “It is time to fill in the gap between DNA Sciences and Agriculture. MyFloraDNA is willing to show the huge opportunities that exist for modern genetics in agriculture. Now, it is time for another agricultural revolution”
Co-author: María Zuccarelli, CMO at MyFloraDNA. Editor: María de Catarina, PR Intern at MyFloraDNA.
About MyFloraDNA: We are a genomic laboratory based in Woodland California, delivering modern genomics for the Cannabis Industry.
Our services include Trait detection (cannabinoid profile and sex/gender ID), Pathogen Detection, and Genetic Validation Services. We offer breakthrough solutions using the inner power of your plants.
by Gary Paulin, VP of Sales and Client Services at Lightning Labels
With expansive product choices, it’s no longer enough to rely solely on product quality and availability. Today’s maturing cannabis marketplace requires differentiation to resonate and succeed.
Three pillars of that differentiation are stellar customer service, total transparency, and excellent education. At the core of each, sincerity and truth must predominate. In this age of “fake news,” anything that doesn’t seem trustworthy and true likely will backfire on the company sooner or later.
It only takes one unsubstantiated quality control or product claim to hit the social media lie detector, then potentially go viral. At the very least, one consumer badmouthing your company via word-of-mouth and/or digital messaging will harm your reviews and ratings. In most cases, the damage will be undetectable until it reaches a level where revenues and reputation are noticeably impacted.
Following are four basics of stellar customer service, transparency, and education:
Interact authentically. Scripts and canned phrases instinctively don’t resonate with most consumers. One obvious example is the “I’m so sorry you’re having a problem” response. How likely is it that the person is really sorry and not just parroting something they’ve been told to repeat time and time again? Instead, communicate in a real way by tuning into what the existing or prospective customer is trying to address.
For example, when someone complains about lengthy waits to receive live phone support (including disconnects while waiting), it’s okay to say something like, “I get it. We’ve been having challenges. Now that we’re on the phone together, let’s address your needs right away. And, please give me your phone number, just in case this call drops. I’ll call you right back.”
Offer multichannel communications preferences. Some people want live phone support, not a digital option. Chat bots can be extraordinarily frustrating unless the programming and ability is advanced. Ditto for “live chat.” As much as possible, make it easy and meet everyone’s preferences. Email, live phone support, texting, website knowledge center, and digital chat should all be offered to meet the customer in a way that works best.
Offer total and transparent education. Knowledge centers (and associated forums) and FAQs can be excellent tools to help provide priority information, but they’re only one piece of the puzzle. Consumer questions and concerns can cover anything. There should be an easy way to find more information through the above-referenced channels as needed. Product labels can provide easy access to a variety of information, starting with label content and extending to either Augmented Reality or QR digital gateways for more in-depth education. Those digital gateways should contain valuable information, along with easily found follow-up calling, emailing, live chat, and additional educational options (including possibly Knowledge Center, FAQs, and keyword-search forums/articles, et al).
“Full disclosure” should be at the core of all things educational, both in information repositories and customer service support. For example, CBD can make some people cranky and anxious. Full disclosure must override the desire to sell. By fully informing a consumer of risks as well as rewards, the experience is much more likely to result in high marks for the company.
Conversely, incomplete or inaccurate information provided by salespeople motivated only by making sales will backfire when less than optimum outcomes occur. In contrast, a salesperson willing and able to fully educate will help build long-term customer relationships with the company.
Hire motivated, attentive, smart people. No matter what policies and training are in place, ultimately companies need to focus on hiring the best candidates — those dedicated to top-notch customer service, truthtelling, and education. Workforce shortages are not a valid reason to abandon these core values in the name of expedient hiring. Be committed to employee wants and needs, and be prepared to follow through. Offer generous wages, but beware of those who seem overly money motivated and demanding. They likely will be gone as soon as the next “shiny toy” opportunity comes along.
There are companies that have weathered supply chain and workforce shortage issues — and even inflationary pressures — well. One that comes to mind is Costco. Unlike many retailers during the pandemic, their quality of service has remained high. Product availability and selection have been maintained. Prices, although subject to some upward movement, don’t seem to have risen as much as most retailers.
Clearly, Costco found solutions instead of blaming challenging conditions and using those as an excuse for failure. Follow this example. Find ways to do more with less, get creative about becoming more efficient, and plan ahead so that emergent problems don’t become overly taxing.
Cannabis companies that excel in being trusted, liked, and respected will outperform their competitors willing to live with mediocrity.
Gary Paulin is VP of Sales and Client Servicesat Lightning Labels, a Denver-based custom label printer that uses state-of-the-art printing technology to provide affordable, full-color custom labelsand custom stickers of all shapes and sizes. Contact: sales@lightninglabels.com; 800.544.6323 or 303.481.2304.
Committee Blog: Cannabis Lounges – Coming to a City Near You?
Although the concept of state-legal cannabis has been around in some shape or form since 1996, cannabis remains illegal to consume in most public places. In other words, legal cannabis consumption remains relegated to back alleys, derailing efforts to “normalize” cannabis use. Tourists visiting popular cities where weed is legal are caught in the unenviable Catch-22 of being able to purchase, but not publically consume, the product. And those who attempt to use cannabis in public still face criminal penalties in some states, with minorities three times more likely to be targeted for arrest, perpetuating racial disparities at a tremendous social cost.
Enter the cannabis lounge. Cannabis lounges — also known as “consumption lounges,” cannabis cafes, or some variation on that theme — are in simplest terms the cannabis equivalent of a bar or restaurant. Depending on state and local regulations, lounges offer users the chance to congregate in a public place and smoke a joint, try out a $500 gravity bong, or sip on a cannabis drink. With any luck, consumers may enjoy their cannabis with a snack or dinner, but mixing with alcohol is typically not allowed.
As with any “new” risks, some cities, states, and insurers are… concerned. Despite some obvious tax and social benefits, detractors cite a host of reasons to prevent lounges from coming to a city near you, including at the forefront: fears of public nuisance (odors, theft, and disruption) and overconsumption — especially because most states insulate cannabis cafes from liability for harm caused by obviously intoxicated or underage users, unlike dram shop laws for alcohol.
As another NCIA member recently pointed out, even in states that do allow cannabis cafes, regulatory bodies continue to struggle with how to shape the laws and regulations governing lounges to afford adequate consumer protection while allowing businesses to thrive. Moreover, without a better understanding of the regulatory landscape, some insurers — whose business model hinges on the ability to accurately price a risk — may be unwilling to play in this new cannabis lounge market.
A Sampling of State Approaches to Cannabis Lounges
Alaska led the country in 2019 in licensing on-site consumption. A handful of states and localities have followed Alaska’s guide, and more are anticipated to join this year, including Michigan and New York. We compare a few regulatory schemes below and also consider the impact of dram shop legislation on risks faced by the industry.
California
California, governed on the state level by the Medicinal and Adult Use Cannabis Regulation and Safety Act, delegates to localities the right to open consumption lounges. Put simply, cities have to affirmatively “opt in” to allow lounges. With a few contingencies — including that patrons must be 21 or older and no alcohol or tobacco can be sold on premises — “a local jurisdiction may allow for the smoking, vaporizing, and ingesting of cannabis or cannabis products on the premises of a” licensed retailer. SeeBPC § 26200(g).
To date, only a few localities have opted in to allow cannabis lounges, including San Francisco, Oakland, and Palm Springs. West Hollywood, in efforts to create an epicenter for canna-tourism, plans to allow up to 16 lounges within its jurisdiction. Because state law provides little regulatory guidance for lounges, localities generally provide more specific guidance. As an example, West Hollywood’s local municipal code requires security guards on site, as well as within a two-block radius surrounding the business during operation, and allows the sale of cannabis to an individual “in an amount reasonable for onsite consumption.” West Hollywood Municipal Code §5.70.041. Only one lounge is currently open in West Hollywood, the Artist Tree’s Studio Cannabis Lounge, which offers not only lounge access but cannabis yoga, live music, and comedy shows, along with a revolving selection of local art. The Woods, another West Hollywood dispensary with a soon-to-open courtyard lounge space, is also slated to open in 2022.
Although California law significantly limits third-party liability for alcohol-related accidents, it does not afford cannabis owners the same protection. For example, California Civil Code §1714explicitly states that furnishing alcohol “is not the proximate cause of injuries resulting from intoxication,” which has essentially absolved bars, restaurants, party hosts, and most others of potential liability for selling or furnishing alcohol to customers and guests with an exception for liability arising from the furnishing of alcohol to an “obviously intoxicated minor.” SeeCalifornia Business & Professions Code § 25602.1. Without similar protections for cannabis lounges, injured parties could attempt to sue under a negligence theory if a business or employee serves an intoxicated patron who causes harm.
Colorado
As of January 1, 2020, local jurisdictions in Colorado can opt-in to the state’s cannabis hospitality business license regime (Colo. Rev. Stat. § 44-10-609), and as of March of 2022, the City of Denver has approved cannabis hospitality businesses for operation. Denver operators include the first social equity applicant in Denver approved for a hospitality license, the Tetra Lounge, although from its website Tetra Lounge’s website describes itself as “a private lounge,” requiring a monthly or annual membership fee and a liability waiver to gain access.
As to dram shop liability, although Colorado law authorizes damages against a licensee for willfully and knowingly selling or serving alcoholic beverages to a visibly intoxicated person, the Colorado Legislature caps liability at $150,000 (Colo. Rev. Stat. § 12-47-801 (3)(II)(c)). This damages cap improves (i.e., reduces) the ISO hazard grade, resulting in the improvement of insurance options available for liquor liability. The legislature has not adopted the same or a similar damages cap on liability for cannabis consumption establishments.
Nevada
In June 2021, Nevada’s Governor signed Assembly Bill 341 into law, authorizing the Nevada Cannabis Compliance Board (“CCB”) to license and regulate consumption lounges across the state, subject always to local approval. The State plans to issue up to 65 lounge licenses (40-45 for lounges attached to existing dispensaries, 20 for independent lounges) with 10 reserved for social equity applicants.
Most recently, on June 28, 2022, the CCB voted to unanimously approve a host of regulations for cannabis consumption lounges. Nevada’s extremely detailed state regulations prohibit the sale of “single use cannabis products” with more than 3.5 grams of “usable cannabis” and 10 mg of THC for edibles; prohibit the removal of any cannabis products from a lounge; require a mitigation plan for impaired driving and detailed employee training for overconsumption; and require consumer education and warnings to customers, among other things. As with other states, Nevada allows local jurisdictions to prohibit consumption lounges and to implement more stringent regulations than state law.
Unlike other states, however, Nevada law carves out protections for cannabis lounge operators just as it does for alcohol. Nevada law already protects businesses that serve or sell alcoholic beverages from injuries inflicted by an intoxicated person. And while any person who knowingly furnishes an alcoholic beverage to any person under 21 years of age is guilty of a misdemeanor, the law provides only for criminal penalties, not civil liability. The Nevada Supreme Court has repeatedly refused to impose responsibility on vendors selling alcohol absent a legislative provision. SeeSnyder v. Viani, 885 P.2d 610 (Nev. 1994) (holding consumption is the proximate cause of alcohol-related injuries and dismissing the negligence claim against a tavern owner for alcohol service). The same rules will apply to cannabis operators.
Illinois
Over two years after full legalization of adult-use commercial cannabis in Illinois, cannabis lounges in Illinois are still relatively rare, with the first Chicago-area marijuana consumption lounge opening on April 20, 2022. Like other states, the State of Illinois does not directly license lounges, but it allows local governments to opt in.
Illinois creates a cause of action against sellers for injury by an intoxicated person. § 235 Ill. Comp. Stat. 5/6-21. The standards for liability under the Illinois dram shop law include: (1) sale of alcohol to any person who, while intoxicated, causes injury, and (2) any person owning, renting, leasing, or permitting the occupation of any building or premises with knowledge that alcoholic liquors are to be sold therein, severally or jointly, along with the person selling or giving liquor. In Illinois, the Dram Shop Statute provides the exclusive remedy for alcohol related injuries. See Charles v. Seigfreid, 65 NE.2d. 154 (Ill. 1995). The Statute also provides stringent limitations on recovery of damages. There is no equivalent in Illinois for cannabis entities.
The Takeaway for Business Entities and Insurance Providers
As with cannabis law generally, lounge operators face a patchwork of state and local regulations that vary tremendously by jurisdiction. In most places, cannabis lounge owners are not protected by dram shop/gram shop laws that otherwise insulate bars and restaurants from liability for overconsumption. This means that companies must be vigilant in protecting themselves from liability by instituting compliance and risk-management procedures.
In some instances, such as California’s West Hollywood, which has far fewer safeguards and guidelines than Nevada, operators are largely left to their own devices in implementing adequate risk transfer and risk management, compliance, employee training, and consumer education to limit risk of liability. While the West Hollywood municipal code requires lounges to limit cannabis sales of cannabis “in an amount reasonable for onsite consumption,” the “reasonableness” standard is rife with ambiguity and could lead to disputes regarding liability and assumption of risk if a patron overconsumes.
Evaluating and preventing overconsumption and intoxication will be particularly difficult for cannabis when: patrons have varying experience levels with cannabis; products can be sold in more than a single serving, and no specific consumer education is required. Thus, even in locations that have more stringent regulatory oversight, companies would be wise to consult with experienced counsel and consultants to avoid or limit potential risks associated with regulatory uncertainty, civil liability, and government penalties for non-compliance.
This brings us full circle to the question of insurance. Even in the states that allow consumption lounges, very few insurance companies provide coverage for on-site consumption (although some do). If an exclusion prohibits coverage, the company may not have coverage for important and sometimes catastrophic events, such as property damage by fire, theft/robbery, cyber events, sexual harassment or discrimination claims by employees or others, and bodily injuries to, or caused by, patrons (on and off premises).
Most existing property, general liability, products liability, and other insurance policies — including those written for the cannabis industry — expressly exclude coverage for on-site consumption or bodily injury caused by intoxication. In fact, some existing cannabis insurance companies include a “health hazard” exclusion in their policies, which exclude coverage for any bodily injury arising in any way from the use of cannabis, including any health injury. Cannabis insurance policies may also exclude coverage for intentional or illegal acts, which some insurers may try to apply to any claim involving cannabis on the basis that the sale of cannabis violates federal law (the Controlled Substances Act), even if it is state legal.
For current licensees that are planning to open an attached or adjacent consumption space, current insurance policies may not cover injuries arising in the lounge space. Further, any failure to identify a change in business type could prompt an insurance carrier to deny coverage for subsequent claims based on a theory of misrepresentation.
In closing, cannabis owners should attempt to negotiate separate and/or broader coverage that carves out coverage for their cannabis-related activities, including on premise consumption, with their current insurer or seek to obtain coverage from a different carrier. Experienced insurance coverage counsel can assist with identifying reputable insurance brokers and negotiating policies that provide such coverage. Because of the limited options, companies would be wise to begin the process of identifying experienced insurance coverage advisors at the beginning of their licensing journey.
Video: NCIA Today – Thursday, July 28, 2022
NCIA Director of Communications Bethany Moore checks in with what’s going on across the country with the National Cannabis Industry Association’s membership, board, allies, and staff. This week Bethany is joined by NCIA CEO Aaron Smith and Deputy Director of Government Relations Michelle Rutter Friberg. Join us every other Thursday on Facebook for NCIA Today Live.
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Todd Glider has been an e-Commerce leader since the start of the Internet age. He has an MFA in Creative Writing from the University of Miami, and has served as CEO for small and medium-sized technology companies in Spain, Austria and the United States. As our Chief Business Development Officer, Todd introduces MobiusPay’s suite of award-winning financial services to new industries, and implements the development strategies and key partnerships needed to bring value to new customers.
Author: 
Lee Johnson
Mack Bush
by Kameron Richards and Steven Schain
Bryan McLaren
“I want our elected officials to hear my story which gives a voice to so many others, who like me, grew up in areas that have disproportionately borne the brunt and weight of cannabis enforcement. Children and young adults, whose only crime was being poor and of color, faced the indignity of being stopped and frisked hundreds of times. Now after paying the ultimate entry price, we can not get in the door of the cannabis industry because of a lack of banking and lending opportunities that continue to shut us out of the cannabis market. 
“As the industry grows and moves towards federal legalization, our elected officials must hear constituents’ voices. It’s important that my energy, face, and voice are present, representing the need for safe banking, health equity, and policies that support federal legalization. As states continue to legalize adult recreational cannabis usage, there will be an increased need for cannabis health equity to address the social, political, and economic conditions in underserved communities. 
“I have begun to work on lobbying at a local level. Federal legalization, descheduling, decarceration, social equity, health equity, and safe banking are some of the areas that I would like to learn how to lobby for at the national level.”
“We should not stop at using the SAFE Banking Act merely to provide legal and regulatory protection for financial institutions. That will enable, but not ensure, increased banking services for minority-owned cannabis and hemp companies. 
Author Tommy Truong is the CEO at 
NCIA’s editorial department continues the Member Spotlight series by highlighting our 
I am a first-generation Latino of Colombian descent, Spanish was my first language and my dad spent most of my youth incarcerated. I grew up in NYC Public Housing projects, and I have first-hand knowledge of the indignity of what it feels like to personally be stopped and frisked nearly 100 times which is what happened to me as a kid and young adult for doing nothing else than being a poor Latino growing up in the hood. I was an Education Opportunity Fund scholar and the first in my family to go to college, where I received a degree in business, and a graduate certificate in law. I earned the designation of Disabled Veteran while serving in Iraq with the United States Marine Corps, and I am also a 9/11 first responder. I retired after a career in public service, and have worked as an entrepreneur for over 10 years, and know what it takes to start a business from scratch, without a rich uncle, generational wealth, or rich financial backers. 
Latinos are consistently underrepresented in terms of business owners throughout all industries. Now when you focus specifically on cannabis and look at a national level, just 5.7% of all license types are held by the Hispanic community. I have seen challenges in the cannabis industry in two key areas, access to capital and the real estate market. It takes money to make money so if you grew up poor, without generational wealth, no rich uncle, no hedge fund connections or oligarchs to call on, how do you raise funds to have the millions that are needed to launch a dispensary or grow? Next and along the same lines is real estate. A lot of landlords won’t lease to cannabis businesses but unfortunately, our experience has been that again a predatory market exists where cannabis rental rates are 2 to 10 times the normal lease rates for the area. The other option is to buy a commercial parcel which brings us back to issue #1 – access to capital. I am ever the optimist, and I see the Latino community growing in the legal cannabis industry as entrepreneurs, c-suite members, and as leaders in the industry bringing our unique insight and sabor to the industry while creating opportunities for generational wealth for our community. In order to get there, we need to bridge the gap through social equity grants and loans that can help Hispanic cannabis entrepreneurs raise enough capital to start their business, and receiving financial education is also crucial for Hispanic entrepreneurs in multiple phases of the cannabis business planning timeline.
Justine Charneau is the head of cannabis industry sales at
Walter Moore Cognitive Harmony Technologies CEO & CTO, is an accomplished software architect, financial engineer, and entrepreneur residing in the south suburbs of Illinois. He specializes in architecting elegant, compliant, and scalable solutions to complex regulatory environments in the AdTech, FinTech, Digital Assets, and Cannabis industries. He has a Masters of Science in Financial Engineering and undergraduate degrees in Theoretical Physics and Applied Mathematics.
MC
Who asks if you think HLV may be in your garden?
Gary Paulin is VP of Sales and Client Services at 
By Jodi Green, Miller Nash LLP; Shay Gilmore, The Law Office of Shay Aaron Gilmore