Committee Blog: Finance for Cultivators – How to Get Out of the No-Profit Loop
You’re growing great weed, but the money isn’t adding up. Your profits are either inconsistent or worse- non-existent. With so much to manage- from production to inventory to cash flow- it’s hard to track it all. You are not alone.
If you’re stuck in a loop of too little profits, too many bills, and not enough time, our upcoming webinar “Cannabis Cultivation Finance: What You’re Missing For Better Profitability” is a must-attend. We’ll break down the three biggest financial blind spots that trip up cultivators. No overwhelming accounting jargon and numbers, just practical advice you can act on now.
You’ll learn:
How to calculate your true cost of production, including value-adds like trim and smalls.
Simple inventory tracking systems so you always know where your products and money are.
Cash flow tools to smooth out the long turnaround from planting to getting paid, so you don’t get surprised by shortfalls.
You’ll be empowered with the knowledge you need to move from survival mode to strategic growth, even when the government takes its cut.
Velvet Kavanagh, a cannabis business consultant with experience in the legacy and legal sectors. With 20+ years of business ownership in emerging and tight-margin sectors, she helps cannabis leaders build profitable, lasting companies.
Raymond Guns, CPA, a Dope CFO accountant who understands cultivation management and how to simplify complex tracking systems. He talks about money in plain language so you have the financial knowledge to make more confident decisions.
With visual tools, time for q + a, and free resources, this webinar is a must-attend whether you are new to money numbers or a finance wiz looking for cultivation-specific insight.
Don’t let another week go by losing time and money to financial systems that aren’t working for you. It’s time to take control so you can break out of the no-profit loop.
As a veteran of the cannabis industry, you’re already familiar with the regulatory complexities and operational risks that come with running a legal cannabis business. But even as the industry matures and expands—projected to reach $52 billion by 2026—banking remains one of the most persistent and misunderstood challenges.
Despite being legal in many states, cannabis remains a federally prohibited substance. That means financial institutions must follow federal laws, including the Bank Secrecy Act (BSA), Anti-Money Laundering (AML) protocols, and FinCEN guidance, if they choose to work with cannabis-related businesses. This legal conflict results in higher compliance costs, greater documentation requirements, and fewer financial services available to cannabis operators.
Still, legitimate banking options are becoming more accessible. Businesses that operate transparently and work with proper compliance systems can secure reliable financial partnerships—without resorting to risky workarounds that often lead to frozen funds or account closures.
Understanding the Rules of the Game
Cannabis business owners must understand that banks operate under an entirely different set of rules. Even if your business is licensed and fully compliant at the state level, banks must verify that you also meet federal standards. This includes full documentation of your business structure, licensing, tax status, and ownership—especially for individuals holding 25% or more equity in the company.
Financial institutions also require evidence that you follow local rules, such as zoning approvals and municipal permits. The banking industry takes particular interest in ownership transparency, as previous cannabis operators have attempted to hide beneficial ownership behind shell companies or layered corporate structures. While these tactics may have delayed scrutiny in the past, they are now seen as high-risk and typically result in terminated accounts.
Laying the Groundwork: Due Diligence and Documentation
Before engaging with a financial institution, be prepared to undergo a deep due diligence process. Banks will expect to review your business formation documents, operating agreements, state and local cannabis licenses, tax filings, SOPs for compliance and security, and detailed financial statements. They may also request proof of your inventory tracking system, insurance coverage, and even video footage or plans related to your cash-handling procedures.
The more organized and transparent your records are, the more confident a bank will feel in your business. This includes having an accurate and up-to-date organizational chart, verifying all ownership interests, and providing supporting evidence for your business’s revenue, investments, and cash flow.
Proving Your Controls: AML and Seed-to-Sale Integration
Because cannabis remains a cash-intensive industry, banks are especially concerned about your ability to prevent money laundering. You’ll need to demonstrate that you have systems in place to document and trace every major transaction, identify suspicious activities internally, and track the movement of cash throughout your business. Written policies, transaction logs, and surveillance data are all important tools in meeting these requirements.
An essential part of building banking credibility is aligning your financial statements with your seed-to-sale inventory tracking system. If a bank asks how your product movement matches your reported income, you should be able to demonstrate a direct connection. Inconsistencies raise red flags, while tight integration builds trust.
Financial Discipline and Tax Transparency
Using cannabis-specific accounting software and experienced CPAs is no longer optional—it’s expected. Your records should be clear, professional, and separated from any non-cannabis revenue streams you might have. Maintaining excellent tax compliance is also crucial, particularly around IRS Section 280E, which restricts the deductions cannabis businesses can claim. Banks want to see not only that you’re filing taxes properly, but that you understand and proactively manage your tax obligations.
Relationship Management: Treat Your Bank Like a Partner
Just as you would with a supplier or regulator, maintaining a proactive relationship with your financial institution is key. Assign specific team members to handle banking communications. Keep your bank informed about changes in your business—whether that’s a new owner, a license renewal, or a change in address. Fast, accurate responses to information requests demonstrate your professionalism and commitment to compliance.
By contrast, businesses that open multiple accounts under vague business names, change banks frequently, or misrepresent their activities inevitably find themselves blacklisted. Several operators have lost access to funds or even shut down entirely due to deceptive practices.
Modern Solutions for a Modern Industry
Fortunately, the cannabis banking landscape has evolved. Today, more credit unions and state-chartered banks are stepping forward with programs designed specifically for cannabis operators. These institutions typically charge higher fees to cover the added compliance workload, but they offer transparency and predictability in return.
Additionally, cannabis banking platforms now exist to connect businesses with financial institutions that understand the industry. Some of these platforms also include tools for compliance documentation and reporting. New payment technologies are also emerging that reduce the need for cash handling while still staying within banking regulations.
All of these options represent a shift away from outdated and dangerous practices— such as disguising cannabis income, running funds through unrelated businesses, or relying on holding companies to open accounts.
Yes, It’s More Expensive—But It’s Worth It
Cannabis businesses must accept that they will pay more for banking services. Monthly fees often range from a few hundred to several thousand dollars. These charges cover the cost of suspicious activity report (SAR) filings, KYC verification, and ongoing account monitoring required by federal law.
While expensive, these fees are far less costly than dealing with frozen assets, last minute bank changes, or operating entirely in cash. The predictability and legitimacy that come with compliant banking relationships more than justify the investment.
Understanding SARs and Staying Ahead
Every cannabis-related account triggers SAR filings. Banks file one of three types: a Marijuana Limited SAR for compliant businesses, a Marijuana Priority SAR if the institution suspects a violation of state law, and a Marijuana Termination SAR if the account is shut down for compliance reasons. Trying to avoid SAR filings by obscuring your business type is a red flag and virtually guarantees eventual termination. It’s better to work with institutions that understand these requirements and have built programs to manage them.
Partnering with the Right Providers
You don’t have to navigate all of this alone. Specialized platforms can help manage your documentation and connect you with cannabis-friendly banks. When choosing a provider, confirm they understand both banking and cannabis regulations, check their track record, and make sure they offer strong data protection protocols.
The Payoff: Long-Term Stability and Growth
The benefits of strong compliance go beyond simply keeping your account open. Banks often lower fees over time for trusted partners, and access to services like lending and merchant processing expands as your relationship matures. Businesses with stable banking relationships are better positioned to grow, raise capital, and scale without constant operational disruptions.
Final Thoughts
As a cannabis industry veteran, you already understand regulation. But banking requires a deeper level of documentation, consistency, and strategic communication. Avoid shortcuts. Invest in compliance. Be transparent with your financial partners. While the process may be more rigorous than what other industries face, it’s navigable—and increasingly essential for sustainable growth.
In today’s environment, legitimate banking relationships aren’t just possible—they’re a competitive advantage.
Committee Blog: Mitigating Risk in Your Cannabis Workforce
We in the cannabis industry are all too familiar with working in an industry with high levels of risk. These risk factors can come in a variety of different forms—from federal intervention to banking to security. However, an aspect of risk that’s often overlooked in the cannabis industry is related to one of the most vital aspects of a functional and compliant cannabis operation—the employees.
Here we will look at risk and risk mitigation techniques involved with identifying the right individuals for hiring in this regularly changing industry, employee training, and the best onboarding/ offboarding practices.
Hiring the Right Folks
I’ve worked with clients across over a dozen different cannabis markets and one of the most recurring pieces of insight I get from newer business operators is a desire to work small. The fewer people the better. In many instances I’ve had clients who wish to not hire or pay anyone full-time at their cannabis operation except for themselves.
While this can obviously decrease overhead costs by having a small personnel pool, it’s virtually inconceivable to have a regulated and compliant cannabis operation—be it a cultivator, manufacturer, retailer, or even a microbusiness—without well-trained and well-qualified individuals within the business. No one can do this work on their own, so you will need to hire the right folks for the job.
From a risk mitigation standpoint, having the right processes in place is essential. This involves finding people with industry experience or at least relevant experience to their job duties, running thorough background checks for new hires, and assessing the specific needs of your own business operation from a personnel standpoint. What does this last point mean? Every cannabis operation is unique, and requires different demands of employees. For example, a manufacturer may want to make sure they have individuals comfortable with industrial machinery associated with extraction or have knowledge in packaging and labeling and the state-specific requirements for such. Human error can increase the overall risks of an operation, so it’s critical to find good people for the business.
The Importance of Training
No matter how knowledgeable and experienced an individual may be, they will still need to be trained in a myriad of standard operating procedures, employee handbooks, and other processes. This is critical not just for a cannabis operation in general, but also for the business specific needs for each business’s unique structure.
Training is important not just from an onboarding perspective (more on that later!) but also for recurring purposes such as when regulations and laws change. We have all seen how states decide to update or modify rules and regulations, so it’s important to stay compliant with even the smallest changes that can impact a business. Being out of compliance with even minor updates can result in steep fines or even revocation of a cannabis license.
As a tool for employees, training throughout their time at a business allows them to become more comfortable with operational readiness, improves one’s overall effectiveness with problem solving, and offers employees better resources to report any wrongdoing they may encounter. Well-trained and knowledge employees make for a better managed business and a business that’s taken proactive steps to reduce risks within their workplace environment.
The Most Critical Employee Related Steps
While air travel is safe, the most dangerous times are during takeoff and during landing. In many ways, this is applicable to employees and working in cannabis. When onboarding a new employee, it’s crucial to mitigate risks appropriately. This means, as mentioned previously, making sure the employee in question passes a robust background check. This is more often than not required by states too, but the strictness and the disqualifying factors an individual may vary.
Additionally, when an employee leaves a cannabis business, appropriate offboarding procedures are essential. Diversion is one of the biggest threats which a cannabis operator will face. Luckily, there are steps to mitigate this and the easiest one often relates to employee training and offboarding. Should an employee be identified as having engaged in diversion, offboarding steps—which may include changing SOPs, having a detailed exit interview with said employee, updating keycards or access points for cannabis and cannabis products, and/or increasing physical security personnel on or around a premises—are valuable to have in place.
Offboarding is critical to compliant operations and operations which have taken appropriate steps to reduce risk. Documentation and fair, timely communication through a potentially emotionally charged process can assist with covering one’s legal and financial bases and ensure for a smoother transition between employees working in the same or similar capacities.
Risk with Employees
On the whole, yes there are risks associated with anything and everything human related. This is true beyond just the cannabis space but is particularly unique here given the overall higher level of risks associated with working in this industry. However, every risk can be assessed and mitigated accordingly and this is also true with the people involved. Hire right, train well, and handle crises well and the risks overall can be more adequately addressed.
Make Your Voice Heard: Why You Can’t Afford to Miss NCIA’s Annual Lobby Days & National Stakeholder Summit
It’s no secret that the cannabis industry is in dire need of reform. Businesses are struggling, consolidation is rampant, and communities continue to bear the costs of prohibition. At the same time, partisan gridlock has made progress at the federal level more challenging than ever. The cannabis industry—its business owners, employees, and advocates—feels the weight of uncertainty, cynicism, and frustration.
But one thing is certain: change doesn’t happen without action. That’s why there’s no better investment in the future of your business and the industry than attending NCIA’s 13th Annual Cannabis Industry Lobby Days and the inaugural National Stakeholder Summit in Washington, D.C., from May 13-15, 2025.
A New Era of Advocacy Begins with the National Stakeholder Summit
For the first time, we’re launching the National Stakeholder Summit, a deep dive into the policy challenges and regulatory shifts shaping the cannabis industry. This is where business meets policy, and where industry leaders set the stage for the advocacy that follows.
NCIA members enjoy complimentary access to the Summit, while non-members can attend for just $100. If you’re not yet a member, there’s never been a better time to join NCIA and unlock full access to this high-impact event.
Lobby Days: The Most Important Advocacy Event of the Year
After the Summit, NCIA’s 13th Annual Cannabis Industry Lobby Days provide a unique opportunity for cannabis professionals, business owners, and advocates to directly influence federal policy. As the industry continues to expand, engaging with lawmakers is essential to advancing sensible regulations, protecting businesses, and pushing for federal reform.
At Lobby Days, attendees will educate members of Congress and their staff on key industry priorities, including:
✅ Banking access ✅ 280E tax reform ✅ Federal legalization
✅ Criminal justice reform ✅ Sensible regulations for hemp products
Even more importantly, this is your chance to share your personal story. Lawmakers need to hear directly from industry professionals about the real-world impact of federal policies. Personal engagement can significantly influence legislative decisions and demonstrate the economic power and legitimacy of the cannabis industry.
Why Showing Up Matters
Beyond advocacy, Lobby Days offers unmatched networking opportunities, allowing you to connect with other business leaders, policymakers, and industry stakeholders. These relationships are critical for staying informed, forming strategic partnerships, and ensuring long-term success in the cannabis space.
This isn’t just about being seen—it’s about being heard. And the best way to ensure your voice carries weight is by standing with the largest and most influential cannabis trade association in the country.
Reserve Your Seat at the Table
NCIA’s Lobby Days is an exclusive, members-only event. Not yet a member? Join today to secure your spot and be part of the movement shaping the future of cannabis.
Already a member? Register now to stay up to date on our agenda, training sessions, and more.
Want to Maximize Your Impact?
Consider sponsoring Lobby Days to amplify your company’s voice and position yourself as a leader in cannabis advocacy. Sponsorship opportunities help you stand out before, during, and after the event.
Be in the room. Be part of the movement. Join us in Washington, D.C.
I look forward to seeing you there—just don’t forget to pack comfortable shoes!
Michelle Rutter Friberg Director of Government Relations, NCIA
Maximizing Cannabis Marketing ROI: Key Insights from NCIA’s Latest Webinar
In an increasingly competitive cannabis market, understanding how to measure and maximize your marketing and PR efforts is essential. Our latest Industry Essentials webinar brought together top industry experts from NCIA’s Marketing & Advertising Committee to break down effective strategies for increasing visibility, proving ROI, and aligning marketing efforts with business growth.
Key takeaways from the discussion included:
PR isn’t just about press—it’s about measurable business impact. Understanding how earned media translates to sales and brand credibility is crucial.
Data-driven marketing decisions lead to stronger ROI. Identifying the right KPIs ensures you’re focusing on what truly moves the needle.
A strong brand strategy outperforms disconnected tactics. Thoughtful, integrated campaigns create long-term success rather than short-term spikes.
Stay ahead of industry trends and ensure your marketing efforts deliver real results. Catch the replay now and level up your strategy!
Member Blog: How Cannabis Insurance Can Safeguard Your Business from Legal Risks
The cannabis industry is growing rapidly, yet with this expansion comes a complex array of legal risks. From compliance with regulations to managing liability claims, cannabis businesses face unique challenges that require specialized insurance solutions. Cannabis insurance provides essential protection, enabling businesses to operate legally and securely while minimizing potential financial hazards.
This article explores how cannabis insurance can safeguard your business from legal risks, outlining vital coverage options and the importance of risk management in this evolving industry.
Understanding Legal Risks in the Cannabis Industry
Businesses in the cannabis industry need to grasp the legal difficulties that affect them. The cannabis business operates under strict regulatory parameters which make businesses exposed to major market challenges stemming from compliance problems and legal complications. Several of the most frequent legal risks encompass:
Breaches of Regulatory Compliance
All cannabis companies must follow every law enacted by the federal government and state authorities, together with regional ordinances. Business operations face severe consequences when any compliance violation occurs, regardless of intention since it leads to potential business shutdowns or heavy fines together with legal action. Insurance coverage helps pay for the legal expenses that arise from compliance cases.
Lawsuits for Product Liability
Users may encounter safety risks when using cannabis products that include edibles and tinctures, and vaporizers. Experiencing negative reactions from customers who believe their product is faulty could trigger expensive legal proceedings for a business. The insurance protects companies in case clients bring product liability claims.
Claims Related to Employment
Possible legal challenges arising from workplace discrimination combined with unfair dismissal and harassment issues affect all industries including cannabis. EPLI provides coverage to pay for legal costs and compensation required in employment claims.
Property and Theft Hazards
The expensive marijuana stock maintained by cannabis companies makes them especially vulnerable to theft incidents. Business disruption can occur because of fire incidents combined with vandalism or natural disasters damaging property. The coverage provided by property insurance enables businesses to recuperate after experiencing such events.
Cybersecurity Risks
Cannabis companies currently use online systems to store sensitive corporate and client information. Businesses which obtain cyber liability insurance gain safeguarding against financial consequences and data breach losses together with hacking incidents.
Key Insurance Policies to Protect from Cannabis Operations
Businesses operating in the cannabis industry must buy specialized insurance plans that protect them against relevant dangers. Several mandatory insurance protection plans exist, which include:
1. General Liability Insurance
General liability insurance helps businesses avoid legal expenses after claims from external entities when these entities suffer property damage or experience customer injuries. Every cannabis business needs this policy for essential protection purposes.
2. Product Liability Insurance
Product liability insurance protects businesses from legal consequences that stem from releasing dangerous defective products onto the market. Additions to legal costs and settlement payments, together with damages awarded during legal cases, fall under the scope of this insurance.
3. Workers’ Compensation Insurance
Through the workplace policy employees can receive medical care together with income benefits when their job injuries occur. The manual nature of cannabis businesses necessitates workers’ compensation insurance due to the high risks of workplace injuries.
4. Property Insurance
The protection given by property insurance provides monetary compensation for physical structures including dispensaries along with warehouses and cultivation buildings. This policy protects organizations by paying for costs arising from fire damage as well as theft events and natural disasters.
Employment Practices Liability Insurance which you may also know as EPLI, protects cannabis businesses from employment-related lawsuits that might occur when employees face discriminatory action and harassment at work and unfair termination.
Benefits of Cannabis Insurance for Legal Protection
Investing in cannabis insurance provides numerous benefits in addition to financial protection. Here are several important advantages:
1. Ensures Compliance with State Laws
Numerous states mandate that cannabis companies possess certain types of insurance to fulfill their licensing obligations. Possessing appropriate coverage guarantees adherence and avoids licensing problems.
2. Minimizes Financial Losses
A business unprepared with insurance faces financial challenges when trying to afford costs of court procedures and payment of settlements. Insurance alleviates the monetary stress of legal actions and claims.
3. Enhances Business Credibility
Being insured at proper levels represents both professional conduct and responsible management of accountability. A cannabis business protected by proper risk management attracts more customers and investors together with business partners who demonstrate trust in its operations.
4. Protects Business Owners and Employees
Insurance provides legal advocacy along with monetary support when defending against lawsuits to shield both organizations and their personnel against unpredicted legal responsibilities.
5. Reduces Business Interruptions
Unexpected incidents, such as theft or property damage, can disrupt operations. Insurance helps businesses recover quickly by covering losses and repair costs, minimizing downtime.
Choosing the Right Cannabis Insurance Provider
Choosing the appropriate insurance company is essential for thorough coverage. Here are several important factors to keep in mind:
1. Industry Experience
Select an insurance provider that specializes in cannabis policies and comprehends risks particular to the industry.
2. Policy Customization
Seek out providers that deliver customized coverage choices suited to your business requirements, regardless of whether you run a dispensary, cultivation site, or distribution firm.
3. Reputation and Financial Stability
Investigate the insurer’s financial stability, customer feedback, and claim handling effectiveness to guarantee dependability.
4. Compliance Knowledge
Due to variations in cannabis laws among states, collaborate with an insurance provider that remains informed about changing regulations to guarantee compliance.
Conclusion
Risk management for the cannabis industry requires proactive strategies since insurance serves as an essential component among such approaches. Companies that invest in wide-reaching cannabis insurance coverage protect themselves from regulatory fines and legal actions as well as property damage and multiple types of liabilities.
Businesses that adopt proper insurance coverage mechanisms get protected from financial instability and also gain regulatory compliance while enhancing their credibility and building enduring business success. The cannabis sector’s development requires businesses to obtain suitable coverage that minimizes their risks and enables secure business operations.
Committee Blog: Announcing Winners of NCIA’s State Regulatory Committee 2024 CannaStar Awards
National Cannabis Industry Association’s State Regulation Committee announces 2024 award winners for cannabis regulatory and program rollout success in 8 states
State-level cannabis regulations are a moving target; or rather, 50 moving targets. Despite nationwide movement in nearly every US state towards a regulated, adult-use market, each state has approached cannabis sales with their own unique flair.
Although it has been fun to watch each state’s program mature under their own particular point of view, as we move forward into 2025 our committee wants to call attention to some of the states we feel are getting it right.
The National Cannabis Industry Association State Regulatory Committee (NCIA’s SRC) hopes that by highlighting the successes (some of them unlikely) in individual states, we can inspire states to come together to share best practices, work towards eliminating redundancies for multistate operators, and create a streamlined framework that allows for greater access to the market for both would-be operators and consumers.
Without further ado, here are the National Cannabis Industry Association State Regulatory Committee’s CannaStars for 2024!
Best Social Equity Program: Illinois
Through the Illinois R3 Program (Restore, Reinvest, Renew), 25% of Illinois cannabis tax revenue is reinvested into communities disproportionately impacted by the War on Drugs, funding initiatives like job training, reentry services, and legal aid. Since launching, this has amounted to $244M in marijuana-funded revenue grants to community organizations that address disinvestment and excessive incarceration in Illinois.
Illinois also prioritizes social equity applicants for licensing by offering additional points on applications, reduced fees, and conditional licenses for roles such as craft growers and transporters. Further, the Cannabis Business Development Fund provides low-interest loans and grants to social equity applicants, helping reduce financial barriers to starting a cannabis business.
Like every state, Illinois continues to navigate the complexities of implementing a fair social equity program. However, the state has also backed up their commitment to restorative justice with criminal record reform. They have identified more than 770,000 records of “minor cannabis offenses” that may be eligible for expungement.
Currently, of the 25 jurisdictions with legal adult-use cannabis programs, 18 have an active social equity program. NCIA’s SRC believes that Illinois leads the nation with a model for social equity within cannabis that truly prioritizes a fair, restorative model.
Best Hemp Regulation: Kentucky
Kentucky’s hemp program stands out as a model of safety, transparency, and innovation due to its prioritization of registration and rigorous testing of hemp products. In Kentucky, all hemp-derived cannabinoids must undergo purity testing and remain compliant with THC limits. Packaging and labeling must also be clear and meet rigorous standards, similar to those in the adult-use markets of other states.
Although enforcing hemp producers and sellers to comply with tight standards has been met with some controversy, NCIA’s SRC believes that Kentucky’s efforts are a good thing and reinforce trust in the marketplace for consumers. California’s outright ban on intoxicating hemp derived products in 2024 has made it clear that lax regulations on hemp put the reputation of the entire cannabis industry at risk.
Beyond safety, Kentucky’s Cabinet for Health and Family Services does an outstanding job fostering collaboration. They engage farmers, processors, and retailers through education and support, and are transparent about regulatory changes and best practices. Their forward-thinking approach has positioned Kentucky as an ideal place for farmers and cultivators throughout the country.
Best Balance of Cannabis and Hemp Regulations: Minnesota
When Minnesota voted to legalize adult-use cannabis in 2023, the state already had a thriving hemp-derived THC product market. Instead of bulldozing the existing hemp market, Minnesota has instead worked to bridge the gap and create a cohesive framework that supports existing businesses, innovation, while also prioritizing public safety and further economic growth.
One of Minnesota’s key strengths is its integrated approach to regulation: hemp and adult-use cannabis are regulated centrally. This is a substantially different model than many other states, where cannabis and hemp are managed by separate regulatory bodies. By overseeing hemp-derived THC products and cannabis under a unified system, the state avoids market confusion and ensures consistent quality standards.
By carefully integrating cannabis and hemp regulation, Minnesota has positioned itself as a model for other states. NCIA’s SRC believes that the Minnesota model – a two-tiered system where lower THC products can be manufactured and sold more readily while higher concentrates of THC are sold through a traditional adult-use framework – merits consideration nationally as a way to increase access, safety, and roll-out adult-use without disrupting existing businesses.
Best Legislator: New Mexico State Senator Katy Duhigg
Elected in 2021, Senator Katy Duhigg (D) represents Albuquerque Senate District 10. Duhigg is the former Albuquerque City Clerk, with a background in election and consumer protection. As a State Senator, she brings extensive cannabis knowledge to her role, and has been critical in allowing New Mexico to emerge as an unlikely success story in adult-use cannabis.
Senator Duhigg serves as Chair of the Senate Rules Committee, and as Vice Chair of the Senate Judiciary Committee, where cannabis-related legislation enjoys the most rigorous discussion. Her commitment to the cannabis industry was witnessed during her very first legislative session, wherein the Cannabis Regulation Act was passed, legalizing cannabis for adult use in New Mexico.
The Cannabis Regulation Act was signed by Governor Lujan Grisham in June, 2021 and New Mexico was able to roll out their program quickly and effectively. Less than a year later, on April 1, 2022, New Mexico was open for business. There are now 3,071 active license holders (as of December 4, 2024).
Since the passage of the CRA, Sen. Duhigg has been absolutely integral, leading the charge in the Senate to improve the enabling legislation and to ensure New Mexico’s cannabis industry continues to mature, with strong equity protections that include uplifting the existing medical operators who have been serving the state since the beginning of New Mexico’s medical cannabis program in the 1970s.
Best Age Verification Guidelines: Nevada
Cannabis is frequently subject to “think of the children” style regulations and moral panic, but states often miss the mark when actually trying to put guidelines in place that protect minors and keep products out of their hands.
Nevada is still the first, and only, state to require any type of ID authentication to detect fake and suspicious IDs, and the Nevada Cannabis Control Board remains the most well-educated regulatory body on the subject of the forensic document analysis required to actually separate adult users from minors presenting false identification.
Furthermore, in March 2023, Nevada Assemblyman Brian Hibbets introduced AB342 – special interest legislation – that would have required onerous, and expensive third party checks as part of the Nevada dispensary age verification process. The Nevada State Legislature smartly shot down this amendment, which was vendor-specific language desperately seeking a problem that doesn’t exist in a state where every dispensary is doing the absolute most to detect fake IDs and keep minors out.
As of May 2024, Nevada is also the only state to include any guidelines for age verification of cannabis purchase via eCommerce, or age verification for cannabis delivery. This makes Nevada the top state in the nation for preventing underage sales, but with a common-sense approach that doesn’t try to add unnecessary burdens to their cannabis operators.
Best Challenge to the DEA: Georgia
In 2023, Georgia took the bold step of deploying their medical program directly into independent pharmacies across the state. With a limited product mix and a nascent patient base, this was an innovative way to jump-start a program and avoid high capital costs. The program was on track to get 90% of the medical cannabis patient base accessible within a 30-minute drive within 6 months of launch.
Unfortunately, in November 2023, the DEA sent an ominous letter to ice the exciting new rollout, reminding pharmacists that cannabis is still a Schedule I substance. However, instead of capitulating to the threat, the industry persisted and the state stood by to support the program with 52 pharmacies remaining active license holders. NCIA’s SRC celebrates Georgia’s commitment to medical cannabis patients and increasing access, in spite of federal threats.
Best Tax Rate Reform: Washington State
The culmination of a 5-year effort finally succeeded in removing all state taxes from Washington Department of Health-compliant products when purchased by registered medical patients. This matches the standards for pharmaceutical purchases in nearly every US state, where prescribed medications are non-taxable. Washington now joins 10 other states who do not tax medical cannabis purchases.
Since 2016 The Cannabis Alliance, Washington’s largest cannabis trade organization, has been advocating for the reduction or removal of the 37.5% state excise tax on medical cannabis products. Now, as of June 6, 2024, registered medical patients can purchase prescribed cannabis tax-free, a nearly 50% reduction in total cost to medical consumers. The state also introduced new higher testing standards for medical products, a patient registry, and a medical cannabis consultant license provided to budtenders.
Although adult-use cannabis in Washington still remains subject to a 37% tax, and the NCIA SRC acknowledges that taxes are needed to continuously fund state cannabis programs, we want to highlight Washington as the first state in the nation to treat medical cannabis as a medical necessity under the tax code, easing consumer financial burdens, and helping better position medical cannabis as a legitimate and needed treatment for many conditions.
Best Employee Protections: Nevada
Nevada leads the way with some of the strongest employee protections in the United States to ensure legal users of medical or adult-use cannabis do not face workplace discrimination. In 2020, Nevada was the first state to prohibit most employers from rejecting job applicants based on pre-employment marijuana tests. This landmark legislation, codified under Assembly Bill 132, effectively protects job seekers who legally consume cannabis, while still allowing employers to maintain workplace safety standards for positions in safety, aviation, and other high risk roles. Additionally, Nevada law protects employees from penalties for lawful off-duty cannabis use. This includes the stipulation that employers cannot take adverse actions against employees for testing positive for cannabis unless there is a direct safety concern or violation of company policies.
For medical cannabis users, Nevada law goes a step further by requiring employers to attempt reasonable accommodations for qualifying medical conditions. This requirement, enacted under Assembly Bill 453, emphasizes that individuals using medical cannabis for legitimate health concerns are entitled to workplace protections, similar to those afforded to employees using other prescription medications.
Notably, the Nevada Supreme Court has affirmed employees’ right to sue for violations of these protections, cementing the legal precedent that employees have the right to challenge discriminatory actions based on cannabis use. The court’s decisions have reinforced Nevada’s position as a model for other states considering similar workplace protections for cannabis consumers. These legal safeguards represent a forward-thinking approach to balancing employee rights with workplace safety, and have set a gold standard for workplace cannabis policies across the United States.
Best Regulatory Addition for Market Diversification: Massachusetts
Better late than never, the Massachusetts Cannabis Control Commission recently drafted new social consumption regulations and has moved to the formal public comment stage. As mature markets struggle with oversupply and overlicensing the rate of entity failures and state court receiverships (both voluntary and involuntary) of licensees are steadily on the rise. Massachusetts is among the first states to proactively offer a diversification opportunity for their cannabis program in the form of consumption lounges.
The draft regulations contemplate three different varieties of social consumption licenses – supplemental, hospitality and event organizer – and would restrict social consumption licenses to only Social Equity Businesses, Social Equity Program Participants, Certified Economic Empowerment Priority Applicants, Microbusinesses, and Craft Marijuana Cooperatives for the first 5 years after program launch. Supplemental licenses would be available to certain existing marijuana establishments and allow for on-site consumption within or attached to an existing facility. Hospitality licenses would permit non-CCC licensed entities to host on-site consumption events in partnership with certain existing marijuana establishments. Finally, event organizer licenses would permit certain existing marijuana establishments to host temporary consumption events.
9 states have already active consumption lounge licensing, and Massachusetts has been considering a social consumption pilot program since 2019, but the NCIA SRC wants to highlight Massachusetts for a considered approach focused on increasing revenue streams for smaller operators and social equity license holders.
Lifetime Achievement Award for Innovation: California
California has consistently led the nation when it comes to innovative and inclusive cannabis policy, going back to their first legalization ballot initiative in 1972. They were the first state to legalize medical cannabis in 1996, and today California still remains a leader in the cannabis industry, driven by its vast market, progressive regulations, and culture of experimentation.
A key milestone in this evolution was the 2024 California State Fair, which became the first state-sanctioned fair to integrate cannabis sales and consumption on-site, embracing cannabis culture into the mainstream. The state is also pioneering new business models, with cities like West Hollywood and San Francisco operating cannabis lounges that combine cannabis with art, food, and entertainment, reshaping consumption and creating new opportunities and economic growth in hospitality and entertainment.
California’s commitment to research further enhances its role as a leader, with the University of California system partnering with private enterprises to explore cannabis’s medical potential, including at the UC San Diego Center for Medicinal Cannabis Research. Together, California’s groundbreaking events and innovative business models position it as the epicenter of cannabis innovation.
NCIA’s SRC expects that California will continue to lead the way with an innovative and focused approach to growing its legal cannabis industry.
Conclusion & Congratulations
Congratulations to the 2024 National Cannabis Industry Association State Regulatory Committee’s CannaStars winners! The committee has enjoyed supporting the progress of medical and adult-use cannabis programs across the US, and can’t wait to see what new developments every state has in store for 2025.
Member Blog: The Cannabis Crisis Plan – Business Insurance for the Future
Is Your Cannabis Business Prepared for the Unexpected?
In an industry as scrutinized as cannabis, a crisis can escalate quickly—having a solid plan in place can make all the difference.
Given its unusual balance between federal illegality and regional legality, the cannabis industry sometimes feels like it’s under a microscope. Indeed, because of this microscope, a cannabis crisis can blow up fast. From product recalls to regulatory and legal issues, the Avaans Media team has worked with cannabis companies – and non-cannabis companies – can face in moments of crisis. No crisis is ever “planned.” Because the very nature of a crisis is that it creeps up when you least expect it. Think it can’t happen to you? Seventy-nine percent of companies will experience a crisis with service disruption and media implications.
A moment of crisis doesn’t even have to be the brand’s fault. Many companies have gotten caught up in social media rumors, it could have to do with police, government officials or product recalls and yet in those cases, it is the company’s crisis to handle.
A crisis plan can be the unsung hero of an emergency. Putting a crisis plan in place may seem tedious, but a cannabis crisis is high stakes, and understanding when, who and how your company will handle a moment could save you millions in legal and PR fees, while also preserving the valuation of the brand, and the reputation in the eyes of customers, regulators, and the media. Crisis PR professionals can assess a situation quickly and guide you through this process. And a crisis plan will help you in those early critical moments. Tabletop exercises and media training are the muscle behind a crisis response.
Yet, if you find yourself in a crisis without a plan in place, there are three strategies to employ in a crisis.
Follow the traditional process of response.
We see this played out repeatedly, the traditional response to a crisis is to address the facts publicly, acknowledge the concern and the problem, apologize, and rectify. This is a well-worn process, and the media are all very familiar with this process. It’s important with this strategy to consider the methods of response and that the urgency matches the level of the crisis. Spokesperson, media format, and timing are essential elements in this strategy.
What level of response does this moment demand? If the problem hasn’t hit the media, but your customers are upset, how will you deal with that differently than if the media is calling?
The truth is always your north star. That’s particularly true during tumult. Tell the truth, stick to the facts. If you don’t know the answer, it’s perfectly OK to say you don’t know and will return with an answer when you have one. Don’t make promises you aren’t sure you can keep.
Where and how you issue a statement is a message. Who issues the statement? Will you issue a statement on YouTube or on Instagram. Both? Will you talk to the media at a press conference, or will you issue a written statement to the media?
Use the Crisis to Effect Change
Sometimes, a crisis can be used as an opportunity. No doubt, this is a risky choice and should be taken with sincere consideration and expertise about when and how to share the story.
High Seas Dispensary in Costa Mesa, California did this recently when they ran into a sudden brick wall with city leaders who were withholding their city business permit. This came a surprise to the founders of High Seas Dispensary who had always been reputable players in California cannabis.
News coverage of the situation soon started bubbling up and the withholding was rescinded, allowing the dispensary to finally open its doors, albeit months later than planned.
This may be the riskiest choice of all. Because response is critical if a crisis has or will reach the media level. The first step in a crisis is to decide if it is an actual crisis and if so, what response there should be.
Indeed, some low-level crises feel stressful in the moment, but the reality is that a public response will only fan the flames. An example of this is when things heat up with a few negative social media comments. It feels alarming, and it feels urgent, but unless those comments are part of a larger issue that should be addressed, feeding the trolls is only going to make more people aware of the situation.
Yet, a fast response may allow you the opportunity to tell your side of the story. An example of this is a cannabis recall client we worked with who called us after the story hit the TV news; there’s no going back. What’s done is done. We would have put the CEO on the news to respond which would have given the story a more well-rounded presentation and put a face to the recall, and because the CEO was highly credible, empathetic and well spoken, could have actually improved the brand reputation.
But ignoring a crisis is a risky choice, too. We’ve all seen brands that wait days before responding to a crisis that continues to spiral out of control, at which point, the public statement feels inadequate. This is a strategy, again, which should only be taken with a clear view of the risks.
Think of a crisis PR plan as business insurance. A good plan can stop a crisis its tracks. Feeling prepared is the difference between panic and composure.
NCIA’s Statement on Interlocutory Appeal in Federal Cannabis Rescheduling Hearing
The historic hearing scheduled to examine how marijuana is classified under federal law that could have potentially moved it into Schedule III of the Controlled Substances Act has been postponed indefinitely.
The DEA’s Chief Administrative Law Judge (ALJ) Mulrooney recently granted a request for leave to file an interlocutory appeal, resulting in the cancellation of the merit-based hearing and effectively pausing the proceedings for at least three months. With a new administration being sworn in imminently and a new DEA Administrator who has yet to be selected, future action remains uncertain.
The movants (Village Farms International, Hemp for Victory, Office of the Cannabis Ombudsman of Connecticut, et. al.) behind the request were Designated Participants (DPs) without standing who purport to be pro-rescheduling, despite the fact that their motion will require operators to continue paying the exorbitant tax rates that 280E imposes and has galvanized prohibitionists. The interlocutory appeal was filed in an attempt to remove the DEA as the proponent of the rescheduling rule due to evidence the agency was biased against cannabis and had engaged in communications with prohibitionist group Project SAM and other opponents outside of the legal process.
While we agree that the DEA was unsurprisingly not free from bias, NCIA did not subscribe to this strategy because removing the DEA from its own administrative court was never a viable option and would have only resulted in delay or perhaps the end of the rescheduling process.
As the only pro-cannabis party granted standing in these proceedings, we are very disappointed in this unfortunate turn of events initiated by parties without legal standing.
“We believe this to be an ill-conceived strategy that benefits no one but the prohibitionists seeking to hinder reform,” said NCIA CEO & Co-founder Aaron Smith. “Our members need rescheduling and tax relief now, and we remain committed to advancing these reforms through whatever means available in the weeks and months ahead.”
This development underscores the importance of NCIA’s ongoing work advocating for the cannabis industry in Congress and the new administration. It will be up to the next DEA Administrator to determine the future of cannabis scheduling and NCIA will be working hard to ensure getting the process back on track is a priority.
Our pro bono legal teams at Greenbridge Corporate Counsel and Fox Rothschild are exploring every avenue possible to get the proceedings back on track and ensure meaningful progress continues.
Member Blog: CBD Oracle Launches Consumer Protection Standards to Address Industry-Wide Issues in Hemp Products
CBD Oracle has released a set of objective, expert-backed criteria to help consumers find better hemp products and lay out clear expectations for companies.
There is a lot of talk about self-regulation, but with very little top-down control, bad actors are still widespread and the challenge of finding safe, reliable, and effective products falls primarily on consumers. At the same time, honest brands are faced with competing pressures, hoping to put out products that tick all the right boxes but balance this out against profitability.
CBD Oracle set out to address these issues, interviewing 22 experts and two governmental agencies about what they’d look for in a hemp product if they were recommending one to friends, family, or patients. The result is a set of objective criteria for evaluating cannabinoid products, covering everything from the plant on the farm right through to the labeling and marketing of the finished product.
For consumers, it’s a guide for what to look out for, but for brands, it’s a blueprint for making the highest-quality cannabinoid products you can and standing out from the bad actors.
The Problems With the Hemp Industry and How They Affect Consumer Trust
While the 2018 Farm Bill left the regulation of hemp products to the FDA, the agency has dragged its feet in establishing regulations and left the task to the states. The end result of this is often described as a “patchwork of regulations,” but this misses what is arguably the biggest issue: enforcement varies drastically from state-to-state and this lack of oversight means that customers cannot depend on anything, even if their state theoretically has solid rules in place.
Reduced consumer trust: Consumers know that many brands don’t hit the mark, so they are more likely to stick to one or two brands they can rely on and shop around less.
Governmental scrutiny: The lax standards in the hemp industry attract negative media coverage and in turn encourage state governments to crack down on hemp.
Market uncertainty: The lack of trust from consumers and skepticism from the government brings uncertainty into the industry. The threat of increased regulation or even outright bans hangs over the future.
A Comprehensive Framework for Evaluating Cannabinoid Products: In Brief
CBD Oracle spoke to 22 experts from the industry, research, medicine, and the law, as well as the FDA and the California Department of Public Health, and reviewed existing standards to come up with their Comprehensive Framework for Evaluating Cannabinoid Products.
The entire framework is in CBD Oracle’s PDF report and blog post, but briefly, the experts identified several key factors consumers should look out for and the industry should strive towards.
The plant’s origin and cultivation method
The plant should be grown in the US, ideally using organic farming methods, outside under natural light, from a single strain and single origin, and preferably in states with ideal climates and robust hemp programs.
Extraction
The extract should be made from flower using a clean method that removes contaminants while preserving beneficial compounds, such as CO2, with natural cannabinoids (not converted) and terpenes (or at least 99% purity for isolates).
Third-party lab testing
There should be full-panel tests publicly available for each batch/lot of each finished product, ideally including tests of raw materials, from an accredited lab with a credible reputation, which confirms that the product is free from contaminants and the potency is within 10% of the advertised amount (20% for low-dose products). The lab report should be less than a year old and should have a QR code for easy verification.
Quality control
The company should be a GMP-certified manufacturer, with an FDA-registered facility, that oversees the entire production process (i.e. not a white-label brand) and has a chain of custody documentation. The hemp should ideally be USDA certified organic, and with NSF sport certification if it’s intended to be 100% THC-free.
Ingredients and additives
The product should be made without harmful or unnecessary additives, including (but not limited to) vitamin E acetate, synthetic fragrances, artificial colorings, parabens, or synthetic cannabinoids, shouldn’t include unregulated supplements, and any vape products should preferably use a base of propylene glycol (and/or vegetable glycerin).
Packaging and labeling
The product should comply with all labeling requirements, be packaged in a child-resistant container, with packing and expiration dates shown, clear dosing instructions, a batch/lot number for traceability, complete ingredient listing, a QR code linked to the lab report and appropriate health warnings.
Reputation, transparency, and marketing
The company should not make unapproved medical claims, use marketing intended or likely to appeal to youth, or sell hemp products without substantive age verification. They should be transparent about their team, work with experts, ideally engage in advocacy or be a member of industry organizations, and offer good customer service, including a money-back guarantee.
Conclusion – Working Towards a Better Industry
It’s likely that the upcoming update to the Farm Bill will come into force before we get any substantive regulation of hemp at the federal level, with the updatelikely restricting intoxicating hemp. The only way to show the industry is responsible before then is to hold it to higher standards, pushing customers to expect more and companies to do more to ensure their products are safe, efficacious, and reliable. While the criteria won’t solve the problems facing the industry, they offer a clear path forward for the industry and empower consumers to expect more of the companies whose products they buy.
Committee Blog: What is Craft Cannabis? Understanding Small-Batch Cultivation and Artisanal Products
What is Craft Cannabis?
Following state legalization and/or decriminalization, it doesn’t take long for dispensaries to be fully stocked with cannabis brands eager to get their products on shelves. Unfortunately, the flood of flower from cultivators that invest early into the new markets quickly turns into a creek as small independent farmers struggle to meet margins to remain profitable. The price per pound of cannabis quickly drops, and many of those hopeful farmers have no other alternative but to sell their business or close down.
Not unlike the alcohol and tobacco industries, some brands are creating a lane for themselves by differentiating their product as Craft or Artisanal.
Industry Comparison – Craft Beer
We can look to cannabis’ distant cousin, hops, to get a taste of what it means to have a successful craft market alongside thriving value products like domestic beer. According to the Brewer’s Association, a non-profit trade association of craft brewers, a brewer is considered craft if they meet the definitions for “small” and “independent” listed below:
Small: Annual production of 6 million barrels of beer or less (approximately 3 percent of U.S. annual sales). Beer production is attributed to a brewer according to rules of alternating proprietorships.
Independent: Less than 25 percent of the craft brewery is owned or controlled (or equivalent economic interest) by a beverage alcohol industry member that is not itself a craft brewer.
In short, craft brewers measure production throughput and ownership share to be considered craft. Some argue that the 25% ownership plays the biggest role in the success of a craft brand since even a smaller stake in ownership from a large corporation could give them enough capital to outcompete their non-corporate funded counterparts.
Can similar qualifiers be applied to cannabis cultivation and manufacturing?
Putting the Craft in Craft Cannabis
Unlike its distant alcoholic relative, cannabis is used to produce more than one type of product. While the most common craft product is flower, it can also be extended through the manufacturing process to make edibles, pre-rolls, tinctures, and more.
The process of cannabis cultivation and manufacturing is far more complex to narrow the craft definition to just the final weight of the yield. For flower alone, multiple variables are considered when defining craft—lot size, total yield, harvesting techniques, pest control solutions—just to name a few.
California has taken an impactful step forward by introducing the Cannabis Appellations Program to the cannabis industry. “An appellation of origin is a protected designation that identifies the geographical origin of a product and typically includes production requirements.” The most common use of appellations are in the wine (true Champagne must come from grapes grown in the province of Champagne, France) and coffee industries.
Craft Cannabis Webinar Series
Consumers play the largest role in the success of a cannabis brand and, with the help of small business advocates like NCIA, are now learning about the smaller craft cannabis brands available in their state. So then, what does it mean when your jar of fresh flower says “Craft Cannabis” on the label? What and who defines the craft? What does this new appellation program mean for craft cultivators? How can consumers and retailers support these specialized brands?
As the cannabis industry continues to evolve, staying informed about the latest trends and insights is crucial. To keep up with everything happening in the world of craft cannabis and beyond, we encourage you to follow us on LinkedIn for updates, event announcements, and industry discussions. Join our community on LinkedIn today!
Don’t miss out on valuable information—sign up for our newsletter to receive the latest news, resources, and event updates straight to your inbox. Stay ahead of the curve and be part of the growing cannabis community. Sign up for NCIA’s newsletter here!
We look forward to keeping you informed and engaged with the best in the cannabis industry!
Be Part of a Movement, Not a Moment: Highlights from NCIA’s Fall Stakeholder Summits
This fall, the National Cannabis Industry Association (NCIA) held four Stakeholder Summits across the United States, gathering cannabis industry operators, regulators, investors, and advocates to tackle the unique regulatory, operational, and strategic challenges facing cannabis businesses today. Held in Michigan, New York, Ohio, and Southern California, these Summits offered actionable insights into the evolving landscape of cannabis regulation and taxation, fostering a spirit of collaboration and movement-building in support of a thriving, equitable industry.
Michigan Stakeholder Summit: Regulatory Adaptation and Collaborative Solutions
The Michigan Stakeholder Summit brought to light the latest regulatory shifts impacting cannabis operators in the state. From changes in the Hemp Farm Bill to Michigan’s approach to intoxicating hemp sales, the panel on “Operator Insights and Regulatory Perspectives” shed light on pressing issues. Brian Hanna, Executive Director of the Cannabis Regulatory Agency, addressed upcoming regulatory changes and discussed the need for balanced enforcement to protect Michigan’s legal market. Discussions also covered navigating compliance with agencies like the Department of Environment, Great Lakes, and Energy (EGLE) and MIOSHA, while maintaining operational efficiency.
One core theme emerged from panelists such as Rebecca Collett of Calyxeum and Allison Ireton of Bloom City Club: collaboration is essential. As the Michigan cannabis market faces evolving dynamics, including the rapid issuance of new licenses and pressures on medical caregivers, the need for a transparent dialogue between regulators and industry stakeholders remains critical. Attendees left with actionable strategies for adapting to compliance requirements, maintaining business viability, and ensuring consumer protection.
New York Stakeholder Summit: A Regulatory Landscape in Transition
In New York, the Stakeholder Summit focused on how operators can succeed in a rapidly maturing market. Led by John Kagia from the Office of Cannabis Management (OCM) and industry veterans like Jeffrey Schultz of Foley Hoag LLP, the “Operator Insights and Regulatory Perspectives” panel delved into the complexities of New York’s regulatory landscape. The session addressed social equity provisions, compliance hurdles, and strategies for growth in a highly regulated environment.
Key questions included navigating the intake process for new operators and the impact of recent enforcement actions on the illicit market. Kate Hruby of KJH Strategy emphasized the need for well-defined compliance guidelines to reduce ambiguity, while Marcella Osello of DOPE CFO Certified Advisors shared insights on the financial challenges facing small businesses in New York. The panel underscored the importance of partnerships between operators and policymakers, leaving attendees with insights on building a resilient business within a market in flux.
Ohio Stakeholder Summit: Legislative Updates and Strategic Business Growth
The Ohio Summit explored the convergence of legislation, legal complexities, and operational strategy essential for growth in Ohio’s cannabis market. Ohio State Representative Juanita Brent (D – District 22) shared updates on recent legislative actions affecting cannabis operators and emphasized the need for proactive policy advocacy, particularly as the legislative landscape shifts with changes in state leadership.
Legal experts like John Oberle of Ice Miller LLP and Helen Mac Murray of Mac Murray & Shuster LLP highlighted the nuances of Ohio’s regulatory requirements, with a focus on compliance around testing, product dosing, and advertising restrictions. Emillie Kelleher of BeneLeaves provided practical strategies for scaling a cannabis business within these parameters, underscoring the importance of understanding regulatory demands while fostering consumer trust. Ohio’s legislative season is critical for the cannabis industry, and the call to action was clear: advocate, educate, and ensure that the industry’s voice is heard as Ohio’s regulations continue to evolve.
Southern California Stakeholder Summit: Advancing Equity and Policy Innovation
In Los Angeles, top regulators, operators, and industry advocates gathered to explore the unique challenges and growth opportunities within the region’s cannabis market. Michelle Garakian, Executive Director of the Los Angeles Dept. of Cannabis Regulation, and Laura Magallanes, Deputy Chief of the Office of Cannabis Management for Los Angeles County, shared insights on compliance, while moderator Yvette McDowell guided a discussion on strengthening industry-regulator collaboration. Jazmin Aguiar, Emerging Markets Consultant for Council Member Imelda Padilla, contributed her expertise on market expansion and policy development, underscoring the importance of community engagement in regulatory planning.
Equity operator Kika Keith, founder of Gorilla RX Wellness, advocated for streamlined processes and resources to support equity businesses, while Jerred Kiloh, President of the United Cannabis Business Association, called for policy reform, including excise tax reduction, alongside stronger enforcement against illicit operators. Panelists encouraged attendees to engage in advocacy and build stronger partnerships with local agencies, presenting a path forward for a compliant, thriving, and equitable cannabis industry in Southern California.
Schedule III & Section 280E: Navigating the Future of Cannabis Taxation
Across all four Summits, the “Schedule III & Section 280E: Navigating the Future of Cannabis Taxation” panel served as a pivotal discussion into how the potential rescheduling of cannabis could reshape financial and regulatory landscapes. Featuring a diverse lineup of industry experts and regional operators from across the cannabis supply chain, the discussion highlighted the anticipated end of 280E limitations and its impact on tax planning, capital access, and broader market opportunities.
Each panel featured unique perspectives: in Michigan, Thomas Lavigne, Jay Snipes and Scott Greiper explored strategic financial planning for capital investment in a post-280E landscape and how operators could prepare for new deductible expenses. In New York, Al Foreman and Marcella Osello shared expertise on how rescheduling could influence capital markets and growth for smaller operators. In Ohio, Thomas Haren and Ashley Mosby emphasized proactive compliance and planning for tax relief, while in Southern California, Neil Rosenfield, Henry Wykowski, and Eric Kaufmann discussed the regulatory adjustments needed to fully benefit from Schedule III status, with a focus on operational scalability and tax strategy. Panelists across all locations encouraged operators to adopt forward-thinking approaches, aligning financial practices with both current and evolving regulatory environments.
Honoring Our Speakers: Driving Conversations That Shape the Cannabis Industry
The success of the Fall 2024 Stakeholder Summits would not have been possible without the expertise and passion of our distinguished speakers. These industry leaders, policymakers, and advocates generously shared their knowledge, providing actionable insights and fostering critical dialogue on the challenges and opportunities facing cannabis businesses today. We extend our heartfelt gratitude to each of them for their invaluable contributions.
Schedule III & Section 280E: Navigating the Future of Cannabis Taxation
Thank you to each of these exceptional speakers for advancing the conversations that define the future of our industry. Their insights and leadership continue to inspire progress and innovation across the cannabis landscape.
Thank You to Our Sponsors and Partners: A Driving Force Behind the Fall 2024 Stakeholder Summits
Platinum Sponsors
FundCanna and Bavis Fabacraft led the way as our Platinum Sponsors, opening each Summit with impactful contributions that set the stage for dynamic discussions and actionable takeaways. Their support was instrumental in creating events that inspired collaboration and innovation across all four Summits.
Together, these sponsors and partners exemplify the power of collaboration and the impact of collective action. Their support not only elevated the Fall 2024 Stakeholder Summits but also strengthened our shared mission to create a sustainable and equitable future for the cannabis industry.
Thank you for being an essential part of this movement and for helping us continue to inspire, advocate, and lead as we shape the future of cannabis.
Building a Movement for Change
The NCIA’s Stakeholder Summits brought together a diverse array of voices committed to the growth and integrity of the cannabis industry. From navigating complex compliance landscapes to advocating for inclusive regulatory frameworks, the message across each session was clear: this is a movement, not just a moment. Industry stakeholders must collaborate, advocate, and actively participate in shaping the future of cannabis in the United States.
For cannabis operators, now is the time to align with the NCIA’s mission, engage in industry advocacy, and contribute to a movement that transcends individual business interests. Together, we can forge a resilient industry that not only meets today’s challenges but also paves the way for a sustainable and equitable future.
The conversation continues in 2025 — NCIA will hold follow-up Stakeholder Summits in Sacramento and Denver in Q1 and Q2, culminating with our first-ever National Stakeholder Summit in May 2025. This event will coincide with our 13th Annual Cannabis Industry Lobby Days in Washington, D.C., where we’ll unite industry leaders to make an impact on the national stage.
Join the movement — Drive meaningful change and help define the cannabis industry for generations to come by becoming a member of NCIA. Learn more about membership here.
Member Blog: Cannabis Security Solutions – How Security-as-a-Service Delivers Predictable Costs and Reliable Protection
The cannabis industry is rapidly evolving—and so are the cannabis security solutions designed to support it. Cannabis facilities, from cultivation sites to dispensaries, face a range of security challenges, including compliance with regulations, risk of theft, and the complexities of managing high-value inventory. Traditional security systems are often ineffective and costly, leaving significant gaps in meeting industry needs. That’s where Security-as-a-Service comes in, offering holistic cannabis security solutions.
The Challenges with Traditional Cannabis Security Systems
While traditional cannabis security systems may meet compliance regulations, they are often complicated to manage and costly to maintain. With multiple vendor contracts, disjointed technologies, and high equipment service costs, operators are quickly realizing that these systems are not equipped to meet the needs of their growing businesses.
One of the greatest unexpected challenges for operators is the unpredictable expenses associated with service calls and equipment replacements. Many cannabis businesses can end up spending thousands annually just to keep their existing systems operational—costs that can quickly add up for multi-location operators or those dealing with high wear-and-tear environments like cultivation and manufacturing facilities. But, with the Security-as-a-Service model, operators can eliminate these inefficiencies and reduce costs with an integrated, streamlined solution.
Innovating Cannabis Security: The Shift to Security-as-a-Service
Security-as-a-Service offers a new approach to cannabis security by bundling all essential services—system design, installation, monitoring, maintenance, and ongoing support—into one predictable monthly fee. This model not only simplifies budgeting but also provides cannabis operators with advanced security technology and dedicated service.
Some key benefits of Security-as-a-Service for cannabis facilities include:
Centralized Management
Simplifies operations by consolidating various security management tools into a single, cohesive platform. From access control and alarm monitoring to real-time video analytics, cannabis operators can manage their entire security system from one interface. This level of integration minimizes administrative overhead and reduces the likelihood of errors, making compliance and reporting much easier.
Predictable Monthly Costs
A significant challenge for cannabis operators is managing the unexpected costs tied to security maintenance and upgrades. Security-as-a-Service addresses this issue by bundling all equipment repairs and replacements into a single, predictable monthly fee, simplifying budgeting for operators. This model shields cannabis businesses from large, unpredictable expenses, with some clients enjoying years of service without needing to purchase new equipment since their initial installation.
Scalability for Growing Operations
As cannabis companies expand or acquire new facilities, their security needs shift, introducing challenges like incompatible security technologies across locations that often don’t communicate effectively. S-a-a-S provides a flexible, scalable solution, enabling cannabis operators to integrate multiple systems into a single, unified platform without the need to rip and replace existing equipment. This seamless integration can save businesses tens of thousands—or even hundreds of thousands—of dollars in unnecessary equipment costs, ensuring that security upgrades and expansions are both cost-effective and seamless.
Reduce Internal Guard Costs
Optional advanced capabilities, such as Interactive Remote Video Guarding and video analytics, can reduce the need for on-site security personnel, lowering internal guard costs while maintaining a secure environment. Instead of multiple guards patrolling, operators can remotely monitor the entire facility in real-time. One guard can effectively oversee all areas, utilizing two-way communication to issue warnings or direct individuals without physical intervention. If a situation escalates, the guard can quickly lock doors or shut down reception areas from a single interface. By leveraging these tools, cannabis businesses can optimize their security operations and reduce overhead costs without compromising safety.
Dedicated Support and Real-Time Incident Response
Going beyond simply installing equipment, some S-a-a-S offers cannabis facilities access to a dedicated account managers who handles everything from granting access control permissions to generate instant compliance reports. This efficiency allows reports to be generated in minutes, providing clients with a streamlined approach to security management. These services are included in the monthly fee, ensuring rapid incident response and continuous optimization of security systems without unexpected costs or administrative stress.
The Future of Cannabis Security Solutions
Security-as-a-Service is more than just a cannabis security solution; it’s a strategic partnership that becomes an extension of the cannabis business itself. By offering value across every stage— design, installation, implementation, training, maintenance, and support — acting as a true partner, ensuring facilities are always secure and compliant. By partnering with a S-a-a-S provider (like Kastle Security Systems), cannabis businesses can focus on what matters most—growing their operations— while leaving security in the hands of trusted experts.
Unlock Data-Driven Success: Watch the Full Recording of Our Latest NCIA Webinar
The cannabis industry is evolving rapidly, and data is the key to staying ahead. If you missed our latest Service Solutions webinar, now’s your chance to catch up on everything shared by leading experts in the field. During this NCIA Industry Essentials session, we explored how cannabis and ancillary businesses can harness data to drive growth, adapt to shifting regulations, and remain competitive in a dynamic market.
The session featured Adam Hutchinson, Co-Founder of CannaSpyglass, a leading provider of market intelligence and cannabis data solutions. Adam shared valuable insights into how businesses can use data to anticipate trends, identify emerging market opportunities, and optimize decision-making. CannaSpyglass specializes in providing cannabis businesses with access to comprehensive data analytics, helping them remain agile in a competitive environment. Their expertise in leveraging real-time market data has helped numerous cannabis operators scale their businesses and stay ahead of industry changes.
Along with Adam, John Manlove, CEO of Apex Trading, and Vib Gupta, Co-Founder & CEO of CannMenus, discussed the importance of utilizing market data for B2B and B2C insights, and how companies are embedding data-driven decision-making into their operations for better performance and growth.
This session was packed with actionable takeaways on how to leverage cannabis market data, anticipate challenges, and make more informed strategic decisions.
Exclusive Offers for NCIA Members & Webinar Viewers
As part of this special session, we’re offering exclusive discounts to NCIA members and webinar viewers:
Essentials Plan: Get started with CannaSpyglass for just $1/month using code NCIA1DOLLAR. This plan gives you access to a wide range of cannabis data insights, allowing you to explore the latest industry trends and consumer behavior on a budget.
Pro Plan: Save 25% on an annual subscription to CannaSpyglass with code NCIA4ANNUAL. This plan provides full access to CannaSpyglass’s advanced market analytics, real-time data, and custom reporting tools—perfect for businesses looking to gain a deeper understanding of cannabis market dynamics and make data-driven decisions.
CannMenus Offer: CannMenus is offering 60% off your first month of the Pro Suite to all webinar attendees and NCIA members. Use code NCIA60 at checkout to unlock full access to CannMenus’ suite of market analytics, sales enablement tools, unlimited real-time alerts, and custom reporting, with aggressive bundle pricing for additional markets.
These exclusive discounts give you access to the tools and resources you need to drive success in the cannabis industry. From market analytics to real-time alerts, these offerings will help you stay ahead of the competition and ensure compliance as market dynamics continue to shift.
NCIA’s Member-to-Member Discount Program: More Ways to Save
By becoming a member of NCIA, you gain access to our Member-to-Member Discount Program, which connects you with exclusive deals and services from trusted industry providers. From software solutions to legal services, our program offers discounts on products and services that can help your cannabis business stay compliant, scale, and succeed.
Exclusive educational content, including webinars, reports, and industry insights
Member-only discounts on a wide variety of business tools and services
Advocacy that ensures your voice is heard in important regulatory matters
Networking opportunities with key players in the cannabis space
Joining NCIA is more than just about savings; it’s about investing in the future of your business. Whether you’re navigating regulations or looking for new ways to grow, NCIA provides the resources, education, and connections you need to succeed.
Why Join NCIA?
By joining the National Cannabis Industry Association (NCIA), you gain access to a powerful network of cannabis professionals and resources. Our members benefit from:
Cutting-edge webinars and educational content that keep you informed and prepared for the future
Exclusive discounts that save you money on essential tools and services for your business
Advocacy efforts that protect your business and the cannabis industry at large
Networking opportunities with thought leaders, service providers, and industry professionals
Joining NCIA gives you the support and resources necessary to scale and succeed in a rapidly evolving industry.
👉 Join NCIA Today and unlock a wealth of discounts, resources, and support to grow your cannabis business! Become a Member
Watch the Full Webinar Recording
Don’t miss the opportunity to catch up on this essential session. Watch the full Service Solutions: Mastering Data-Driven Success webinar recording now, and discover how you can leverage market data to drive smarter, more informed decisions for your cannabis business.
Stay ahead in the cannabis industry with NCIA—your partner in success!
Unlocking Compliance: Full Webinar Recording Now Available!
The cannabis industry is rapidly evolving, and navigating the complexities of compliant marketing has never been more critical. Missed our latest Industry Essentials: Committee Insights webinar, Unlocking Compliance: Understanding Cannabis Marketing Regulations? Don’t worry—the full recording is now available!
Maria Calabrese, J.D. – CEO of Green Bee Life, bridging transparency and innovation in cannabis content and education.
Helen Mac Murray – Partner at Mac Murray & Shuster, LLP, with extensive expertise in regulatory compliance and consumer protection.
Chad Blackham – Compliance Attorney at Mac Murray & Shuster, LLP, specializing in marketing and advertising law.
Emilie Ramach – VP of Business Development at BeneLeaves, offering deep operational insights into cannabis marketing.
What You’ll Learn:
How to avoid deceptive practices and ensure truth in advertising
Backing health claims with credible scientific evidence
Strategies for navigating ever-changing social media advertising policies
Crafting compliant environmental claims that resonate with today’s consumers
Trademark, packaging, and branding guidelines that safeguard your business
Staying compliant with texting and calling regulations under TCPA and DNC laws
Whether you’re a seasoned operator or new to the industry, this webinar is packed with actionable insights to help you market smarter, protect your business, and stay ahead of evolving regulations.
📺 Access the Recording Here
Why Join NCIA?
As the cannabis industry’s most trusted resource, NCIA offers exclusive opportunities to stay informed, connect with industry leaders, and advocate for policies that support your business. Members get access to webinars like this, industry reports, networking events, and more.
🌱 Join NCIA Today and gain the tools you need to thrive in this ever-changing landscape!
Committee Blog: Access Control for Cannabis Businesses – A Complete Guide to the Benefits and How to Get Started
As the legal cannabis industry continues to grow, the need for stringent security measures becomes increasingly critical. Among these measures, access controls stand out as a fundamental component for safeguarding premises, protecting inventory, and ensuring regulatory compliance.
Cannabis facilities face unique security challenges due to the high value of their products and stringent regulatory requirements. Effective access control systems are essential for mitigating risks such as theft, unauthorized entry, and internal diversion. By regulating access to sensitive areas within a facility, operators can ensure that only authorized personnel can enter cultivation rooms, processing areas, and vaults.
Additionally, access controls are often mandated by regulatory bodies to prevent the diversion of cannabis products to the black market and to protect public safety. Non-compliance can result in severe penalties, including fines, license suspension, or revocation.
Types of Access Control
Cannabis facilities must implement robust access control systems to address several critical security concerns. These include theft prevention, regulatory compliance, and internal security. High-value cannabis products are prime targets for theft, and access controls help prevent unauthorized individuals from entering sensitive areas. Many jurisdictions require cannabis facilities to have stringent access controls to prevent product diversion and ensure public safety. Access controls also help mitigate risks of internal diversion by restricting employee access to specific areas based on their roles and responsibilities.
There are several types of access control systems available for cannabis facilities:
Physical barriers such as fences, gates, and security doors serve as the first line of defense, deterring unauthorized entry. These barriers can be supplemented with security personnel for added protection.
Electronic access control systems use electronic credentials, such as key cards, fobs, or biometric identifiers (fingerprints, facial recognition), to grant or deny access. They offer the flexibility to manage and monitor access remotely. Integrating access control systems with video surveillance allows for real-time monitoring and recording of entry points, providing evidence in case of security breaches.
Sensors and alarms in intrusion detection systems detect unauthorized access attempts and alert security personnel immediately. These systems are often integrated with access controls to provide a comprehensive security solution.
Designing an Effective Access Control Solution
Implementing access controls effectively requires following best practices. Conducting a thorough risk assessment identifies potential vulnerabilities and determines the appropriate level of security needed for different areas within the facility. Employing a multi-layered security strategy that combines physical barriers, electronic access control, video surveillance, and intrusion detection provides multiple lines of defense.
Regular updates and maintenance ensures that access control systems function correctly, including software updates, hardware inspections, and system audits.
Developing and enforcing strict access policies that define who can access which areas and under what conditions is crucial, and employee training on these policies is essential for compliance.
Regularly reviewing access logs helps monitor for unusual activity or patterns that may indicate security issues. Auditing access logs can identify potential internal threats and ensure regulatory compliance. Integrating access control systems with other security measures, such as alarm systems and video surveillance, allows for a coordinated response to security incidents and enhances overall security.
In addition to these measures, it is important to consider the human element in security. Employees should be thoroughly vetted during the hiring process, including background checks and reference verification. Continuous training and education on security protocols and the importance of access controls can help foster a culture of security awareness within the organization. Employees should be encouraged to report any suspicious activity or potential security breaches immediately.
Furthermore, technology advancements in access control systems can provide additional layers of security. For instance, biometric systems that use facial recognition or fingerprint scanning offer higher security levels compared to traditional key cards or fobs. These systems are harder to duplicate or steal, reducing the risk of unauthorized access. Additionally, integrating access control systems with advanced analytics can help identify patterns and predict potential security threats before they occur.
Emergency Preparedness
Another critical aspect of access control is emergency preparedness. Facilities should have clear protocols in place for responding to security incidents, such as break-ins or attempted thefts. This includes having a designated security team, clear communication channels, and regular drills to ensure that all employees know how to respond in an emergency. Access control systems should also be designed to allow for quick lockdowns of the facility in case of a security breach.
Regular audits and assessments of the access control systems are essential to ensure they remain effective and up to date. This includes reviewing access logs, testing the functionality of the systems, and making necessary updates or improvements. Engaging with security experts or consultants can provide valuable insights and recommendations for enhancing the security measures in place.
As the cannabis industry continues to expand, the implementation of robust access control systems is essential for ensuring the security of facilities, protecting valuable inventory, and maintaining regulatory compliance. By adopting best practices and leveraging advanced technologies, cannabis operators can create a secure environment that safeguards their assets and supports the industry’s growth. The integration of physical, electronic, and human elements in access control strategies will be key to addressing the unique security challenges faced by cannabis facilities. Through continuous improvement and adaptation to emerging threats, the industry can achieve a high standard of security and operational integrity.
Enhancing Operational Efficiencies
The role of access control systems extends beyond mere security. These systems can also enhance operational efficiency by streamlining access management and reducing the administrative burden associated with manual security checks. For example, electronic access control systems can automatically log entry and exit times, providing valuable data for workforce management and operational planning. This data can be used to optimize staffing levels, improve workflow efficiency, and ensure that security protocols are being followed consistently.
In addition, access control systems can be integrated with other facility management systems to create a cohesive and comprehensive security infrastructure. For instance, integrating access control with environmental monitoring systems can help ensure that cultivation areas maintain optimal conditions for plant growth. Similarly, integration with inventory management systems can provide real-time tracking of cannabis products, reducing the risk of loss or diversion.
The future of access control in the cannabis industry will likely see increased adoption of advanced technologies such as artificial intelligence (AI) and machine learning. These technologies can enhance the capabilities of access control systems by enabling predictive analytics, automated threat detection, and real-time decision-making. For example, AI-powered systems can analyze access patterns to identify anomalies that may indicate a security threat, allowing for proactive measures to be taken before an incident occurs.
Conclusion
As the cannabis industry continues to evolve, the importance of robust access control systems cannot be overstated. These systems are essential for protecting valuable assets, ensuring regulatory compliance, and maintaining a secure and efficient operational environment. By embracing best practices and leveraging advanced technologies, cannabis operators can build a resilient security infrastructure that supports the industry’s growth and success. Through continuous innovation and adaptation, the cannabis industry can set a high standard for security and operational excellence, paving the way for a sustainable and prosperous future.
Member Blog: Maximizing Success in the Cannabis Industry – Unpacking Market Maturity and Strategic Approaches
The cannabis industry is evolving faster than ever, with new markets opening up and existing ones maturing. But how do you know if your state is primed for growth or if you’re navigating an already saturated market? To thrive, it’s essential to understand where your state sits on the legalization journey and what strategic actions can drive success.
Join us for an insightful webinar hosted by the National Cannabis Industry Association (NCIA) in collaboration with CannaSpyglass and featuring expert insights from Apex Trading and CannMenus. This session, titled “Service Solutions: Mastering Data-Driven Success in the Cannabis Industry,” will dive into key factors that shape success in emerging and mature cannabis markets. Below, you’ll get a sneak peek at what we’ll cover on November 13th, 2024, at 3:00 PM ET.
Key Market Phases: Understanding Your State’s Trajectory
Cannabis markets in the U.S. generally fall into three categories: Upcoming, Emerging, and Mature. Each stage comes with unique regulatory landscapes, market opportunities, and challenges. Let’s break down what each phase means and how it could impact your business:
Upcoming Markets These states are in the early stages of cannabis legalization, often focusing on medical use with limited licenses. Examples include Kentucky and Minnesota, where medical programs are being established, with retail sales anticipated by early 2025. In these states, early movers can seize vendor partnerships and establish consumer trust before the market becomes crowded.
Emerging Markets States like New Jersey and Ohio represent active markets where licenses are increasingly accessible. Businesses here benefit from expanding consumer bases and opportunities for new entrants, with regulated sales expected to soar—New Jersey alone anticipates over $1 billion in sales by the end of 2024. Emerging markets are excellent grounds for growth but demand a keen focus on compliance and adapting to evolving regulations.
Mature Markets In established states like California and Colorado, competition is fierce, and margins can be tight. While new licenses may be limited, these markets allow opportunities for mergers, acquisitions, and refined operations. Mature markets also provide a roadmap for price trends and consumer demand shifts, valuable lessons for businesses in newer markets.
Navigating the Hype Cycle: The Influential Role of Market Dynamics
Whether you’re in an upcoming or mature market, the factors that influence success go beyond the legalization timeline. During the webinar, our panel will address the critical elements of the cannabis hype cycle and discuss how they influence market dynamics:
License Caps & Moratoriums: Limited vs. unlimited license markets can dictate competition levels and growth rates.
Compliance Requirements: From rigorous inspections to video surveillance mandates, compliance can impact operational costs and scalability.
Municipal Guidelines: Local opt-outs and license restrictions affect market density and accessibility for consumers.
Social Equity Programs: Equity initiatives can provide critical opportunities or barriers, depending on your status and location.
Multi-State Operators (MSOs): In certain states, MSOs dominate, creating competitive challenges and setting high standards for new entrants.
Seizing Opportunities in Each Market Phase
For cannabis businesses, each market phase offers opportunities and hurdles. Here’s a quick look at how each stage requires tailored strategies:
Upcoming Markets: These markets present chances for early partnerships and brand establishment. Vendors here are in high demand as businesses prepare for retail launches.
Emerging Markets: Building a loyal customer base and securing real estate can be pivotal as more operators enter. For cultivators, planning for price declines is critical.
Mature Markets: Efficiency is paramount. Businesses must focus on lowering production costs and exploring niche segments to sustain profitability amidst tightening margins.
Webinar Takeaways: Empowering Cannabis Business Leaders with Data-Driven Insights
This session won’t be just an industry overview; it will provide you with a roadmap for actionable insights. Attendees will walk away with:
Understanding of Your Market’s Position in the Maturity Cycle: Learn where your state stands and what challenges or opportunities lie ahead.
Strategic Tips for Each Market Stage: Discover tailored approaches for upcoming, emerging, and mature markets.
Insights into Regulatory Impacts: Gain a thorough understanding of how license caps, compliance, and social equity affect the industry.
This is an unmissable opportunity for cannabis entrepreneurs and stakeholders to elevate their knowledge and drive data-driven success. Register nowto join NCIA, CannaSpyglass, Apex Trading, and CannMenus on November13th for a webinar that promises to reshape your approach to cannabis market strategy.
The Power of the Ballot: Cannabis Reform Takes Center Stage in 2024
Ballot initiatives are as OG as it gets: nearly thirty years ago in 1996, California became the first state to legalize medical marijuana via Proposition 215, also known as the Compassionate Use Act. This provision exempted certain patients and their primary caregivers from criminal liability under state law for the possession and cultivation of cannabis for medicinal use- and as they say, the rest is history!
But with election day just around the corner, it’s important that we remember our roots (pun intended) and remind our friends in Arkansas, Florida, Nebraska, North Dakota, South Dakota, and Oregon that cannabis is on the ballot.
Arkansas
If you live in Arkansas you may see marijuana on your ballot, but unfortunately your vote on the measure simply won’t be counted!
The Arkansas Medical Marijuana Expansion Initiative will appear on the ballot in Arkansas as an initiated constitutional amendment, however, in late October, Secretary of State John Thurston announced that votes on the measure would not be counted. Thurston determined that proponents submitted a total of 88,040 signatures, falling short of the 90,704 signatures required. The measure was provisionally placed on the ballot because signature verification was ongoing amid the deadline for the final statewide ballot to be printed but the Arkansas Supreme Court later ruled that although the sponsors submitted enough valid signatures to qualify for the ballot, the amendment’s ballot language was misleading and that votes on the measure would not be counted.
Florida
Voters in the Sunshine State will have the opportunity to cast their vote on legalizing adult use cannabis, but with a catch: in order to pass, proposed amendments need to garner at least 60% of the vote in order to be added to the Florida Constitution.
Amendment 3 has gotten substantial media coverage: Florida Governor Ron DeSantis has been an outspoken opponent of the measure, while former President Trump has recently stated that “As a Floridian, I will be voting YES on Amendment 3 this November”.
The outcome remains uncertain, though: A recent Emerson College Polling/The Hill survey found that support for Amendment 3 is at 60 percent, while 34 percent are opposed and 6 percent remain undecided.
Nebraska
Voters in Nebraska will see two medical marijuana measures on their ballots in November, but getting there wasn’t easy: there’s been a local lawsuit and a statewide investigation into whether enough of the signatures were valid.
Both initiatives would define cannabis as all parts of the plant of the genus cannabis, including marijuana, hashish and concentrated cannabis, but not hemp as defined in state law. One effort, the Nebraska Medical Cannabis Regulation Act, would legalize possessing, manufacturing, distributing, delivering and dispensing cannabis for medical purposes and would create the Nebraska Medical Cannabis Commission to oversee the law.
The other measure, the Nebraska Medical Cannabis Patient Protection Act, would set an allowable amount of medical cannabis at five ounces; would exempt patients and caregivers from using or assisting someone else in using the cannabis; and would require a written recommendation from a health care practitioner, as well as a legal guardian or parent in the case of minors, prior to prescription.
Advocates in Nebraska tried (and failed) to get medical marijuana on the ballot in 2022 and 2023- hopefully third time’s the charm!
North Dakota
Voters in North Dakota will see Initiated Measure 5, aka the Legalization and Regulation of Cannabis, on their ballots. North Dakota voters approved medical marijuana in 2016 but rejected recreational initiatives in 2018 and 2022.
The 20-page statutory measure would legalize recreational marijuana for people 21 and older to use at their homes and, if permitted, on others’ private property. The measure also outlines numerous production and processing regulations, prohibited uses — such as in public or in vehicles — and would allow for home grow.
According to a September survey, roughly 45% of registered voters in North Dakota support Initiated Measure 5, while 40% oppose and 15% are undecided.
South Dakota
In South Dakota, voters will see Initiated Measure 29 on the ballot. Measure 29 would legalize cannabis use, possession, distribution and home grows for individuals 21 years and older and allow for limited home grow. It would restrict where individuals could possess or consume cannabis and would also allow employers to restrict an employee’s use of cannabis. To satisfy the state’s single-subject rule, the measure does not establish a commercial marketplace for licensed cultivation or dispensary sales.
This is South Dakota’s third adult-use cannabis measure to appear on the statewide ballot.
Oregon
Measure 119, known as the Unionization of Cannabis Workers Initiative, is on the ballot in Oregon as an initiated state statute. Measure 119 would require cannabis retailers and processors to submit to the Oregon Liquor and Cannabis Commission with its application or renewal of license a signed labor peace agreement between the cannabis retailer or processor and a labor organization actively engaged in or attempting to represent the retailer’s or processor’s employees.
Currently, California, Connecticut, New Jersey, New York, and Virginia have similar requirements for licensed cannabis businesses.
All of these measures will shape the narrative around cannabis reform, so whether you live in a state with a marijuana-related initiative or not- make sure you have a plan to get to the ballot box and let your voice be heard!
Member Blog: Building a Strong Brand – 9 Tips for Cannabis Business Improvement
In the competitive world of cannabis, branding is everything. A strong brand can set your business apart from the rest, making it memorable to consumers. In fact, studies show that 77% of consumers make purchases based on brand loyalty. With so many options available, how do you ensure your brand stands out?
Well, don’t worry; this article provides actionable tips to help you improve your cannabis business through effective branding strategies. By implementing these strategies, you can create a brand that resonates with your customers, builds loyalty, and drives sales.
Let’s get started!
1. Define Your Brand Identity
The first step in building a strong brand is defining your identity. What does your brand stand for? This includes your mission, vision, and core values. Clearly articulating these elements helps create a cohesive message. Think about what you want your customers to associate with your brand. Are you focused on quality, sustainability, or community?
Next, develop a Unique Selling Proposition (USP). What makes your business unique? Identify what differentiates your products or services from others in the market. This could be anything from organic ingredients to exclusive strains. A strong USP will help attract and retain customers.
2. Increase Your Product Portfolio
Expanding your product line is essential for attracting a broader audience. For example, “The Hemp Spectrum” has improved its brand by increasing its product portfolio. They offer concentrates, edibles, self-care, and pet care products. You can look up “The Hemp Spectrum online dispensary” to see how they are diversifying and utilizing their product portfolio. This diversification allows them to cater to various customer preferences and needs.
To do this, you have to stay informed about market trends. Identify new product opportunities based on current consumer demands. Use surveys or social media polls to gather insights directly from your customers. Understanding what your audience wants will guide your product development.
3. Develop a Strong Online Presence
A user-friendly website is vital. Make sure your site is easy to navigate and informative. Include high-quality images and detailed product descriptions. A well-optimized website enhances the shopping experience and builds credibility.
Engage with customers on social media platforms like Instagram and Facebook. These platforms are great for building community and brand awareness. Share engaging content, such as educational posts, behind-the-scenes videos, and customer testimonials. Regular interaction keeps your audience connected and interested.
4. Focus on Quality and Compliance
Quality control is critical in establishing trust with your customers. Ensure that your products meet high standards consistently. This includes sourcing quality ingredients and conducting regular testing. When customers know they can rely on your brand for quality, they are more likely to return.
Staying compliant with local laws is essential. Regulations can vary widely in the cannabis industry. Make sure you are up to date with the latest regulations in your area. Compliance enhances your brand reputation and helps avoid legal issues.
5. Engage with Your Community
Building strong relationships with local businesses and organizations can strengthen your community ties. Collaborate on events or promotions that benefit both parties. This not only increases your visibility but also reinforces your commitment to the community.
Engage in cannabis fairs, expos, and local events to promote your brand. These gatherings provide a platform to showcase your products and connect with potential customers. Networking at such events can also lead to valuable partnerships.
6. Invest in Professional Branding
Consider working with branding professionals. They can help create a cohesive brand image that resonates with your target audience. A strong visual identity, including logos and color schemes, is essential for recognition.
Consistency is key in branding. Use the same logos, colors, and messaging across all platforms. This helps establish a recognizable brand and builds trust with your audience.
7. Utilize Data Analytics
Data analytics can provide valuable insights into customer preferences. Use analytics tools to track buying patterns and trends. Understanding how consumers interact with your brand helps inform marketing strategies and product development.
Data-driven decisions lead to better outcomes. Use insights from your analytics to guide your marketing efforts and product offerings. This approach ensures you are meeting the needs of your audience effectively.
8. Educate Your Customers
Offering educational resources about your products is a great way to engage your audience. This could include blog posts, videos, or webinars. Educated customers are more likely to make informed purchasing decisions.
Position your brand as a trusted source of information in the industry. By providing valuable content, you build authority and credibility, which can lead to increased customer loyalty.
9. Monitor and Adapt Your Strategy
Continuously assess what works and what doesn’t. Regular reviews of your branding efforts can help identify areas for improvement. Stay open to change and ready to adapt your strategies as needed.
The cannabis market is constantly evolving. Stay informed about industry trends and be prepared to adjust your offerings. Flexibility will help you remain competitive and relevant.
Conclusion
Building a strong brand is crucial for the success of your cannabis business. By implementing these ten tips, you can improve your branding and attract loyal customers. Embrace these strategies to foster growth and customer loyalty in this dynamic industry.
Committee Blog: Extracting the Truth – Best Practices for Cannabis Extraction
We stand at a pivotal juncture in the cannabis industry, defined by rapid technological advancements in extraction methods and an increasingly complex regulatory landscape. How do we make sense of it all? Before you can have consumables, topicals and concentrates, you must first extract the cannabinoids from the plant. There are multiple extraction methods available, and each method not only influences the efficiency and cost of production, but also affects the purity, potency, and safety of the final product. Manufacturers of cannabis products use various methods for extracting vital compounds from cannabis. Keep on reading to dive into the multifaceted world of cannabis extraction, exploring traditional, modern, and emerging technologies that are shaping the industry.
Understanding Extraction Methods
Here’s a look at some of the most common technologies used:
Traditional and Solvent-Based Extraction
Butane Hash Oil (BHO) and Ethanol Extractions: These are among the most prevalent methods, prized for their efficiency and ability to preserve terpenes. However, solvent-based methods require rigorous disposal of the solvent post-extraction to avoid contamination, highlighting the necessity for strong quality-control measures.
CO2 Extraction: Utilizing supercritical CO2 as a solvent, this method is celebrated for its safety and environmental friendliness. The precision and adjustability of CO2 extraction allow for targeted extraction of specific cannabinoids and terpenes, but at a higher operational cost.
Physical and Non-solvent Extraction Techniques
Rosin Tech and Ice Water Hash: These solventless techniques are gaining traction for their simplicity and the purity of the extract. While they offer a safer alternative by eliminating solvent residues, their scalability and efficiency in commercial settings remain areas for development.
Novel Extraction Innovations
Ultrasonic Extraction and Microwave-assisted Extraction (MAE): The cutting edge of extraction technology, these methods promise increased efficiency, reduced processing times, and enhanced terpene profiles. Their adoption is set to revolutionize the industry, provided they can overcome initial high capital investment barriers and integrate seamlessly with existing regulatory frameworks.
Product Quality and Regulatory Compliance
Which extraction method you choose will directly affect the chemical composition of the final product, and advanced testing and quality assurance protocols will be necessary. The industry has seen significant advancements in testing technologies, such as High Performance Liquid Chromatography (HPLC) and Gas Chromatography-Mass Spectrometry (GC-MS), which are crucial for verifying the absence of solvents, pesticides, and other contaminants.
Navigating the regulatory landscape is a formidable challenge for manufacturers. Regulations vary widely across jurisdictions and often lag behind technological advancements. Be sure to understand issues such as labeling requirements, potency limits, and compliance with Good Manufacturing Practices (GMP).
Manufacturing Challenges and Best Practices
Lab Safety and Employee Training
The extraction process involves handling volatile substances and operating complex machinery, so robust lab safety protocols and ongoing employee education are must-haves. Prioritize creating a culture of safety and compliance, such as creating SOPs for your processes. This will help prevent accidents and ensure the well-being of your staff. Also be sure to document training and day-to-day operational issues.
Scaling Production While Maintaining Quality
As the demand for cannabis extracts continues to grow, you might face the challenge of scaling your operations without compromising on product quality. You can achieve this balance by implementing scalable extraction technologies, maintaining stringent quality control, and investing in research and development.
Recommendations for Industry Growth and Policy Reform
Foster Innovation through Research and Development: Public and private investment in research can help identify new extraction technologies and their applications.
Harmonize Regulatory Standards: The standardization of safety and quality regulations across jurisdictions will facilitate compliance and ensure a level playing field.
Promote Consumer Education: Comprehensive educational initiatives will inform consumers about the safety, efficacy, and benefits of cannabis extracts.
Engage in Policy Dialogue: Active dialogue between industry stakeholders and policymakers will ensure that common-sense regulations are informed, pragmatic, and open to innovation.
The demand for infused products is growing, so manufacturers need to be planning for advanced extraction technologies – ones that fit within regulation and prioritize safety, quality, and consumer protection. By embracing innovation, advocating for harmonized regulations, and educating an informed consumer base, we can achieve growth and establish ourselves as a responsible and valuable sector of the global economy.
NCIA Committees: Now Accepting Applications For The 2025 Term!
If you want to take your industry involvement to the next level, now is the time to get join one of NCIA’s 12 member-driven committees! NCIA is excited to announce that from now until December 11, we are accepting applications for the 2025 term!
All NCIA annual members in good standing are invited to apply for an NCIA committee seat for the 2025 committee term. Blooming & Evergreen Members receive guaranteed committee placement.
NCIA Committees enable NCIA members to engage their vast and varied areas of expertise and passion to:
Effect change and influence public opinion and policy;
Demonstrate thought leadership;
Expand professional and personal network; and
Develop best practices and guidelines to shape the future of our industry.
Let’s ensure your marketing strategies are not only effective but also compliant with the ever-evolving legal landscape. For an even deeper dive into these topics, join us for our upcoming #IndustryEssentials webinar, where industry experts will provide actionable insights to help you thrive in this complex regulatory landscape.
The NCIA’s Marketing & Advertising Committee stresses the importance of avoiding unfair, abusive, and deceptive practices (UDAAP) in your marketing materials. UDAAP laws prohibit misrepresentations about product quality, and availability, failing to include appropriate warnings, and more.
However, what constitutes “deceptive” can be subjective, varying by state. With state attorneys general empowered to bring lawsuits against violators, staying informed about state-specific regulations is crucial. Additionally, federal implications under the FTC, FDA, and CFPB underscore the need for compliance.
Backing Health Claims with Science
Product substantiation and health claims are under scrutiny, especially in the CBD arena. While no single federal entity has jurisdiction over the nebulous area of “product substantiation,” the FDA and FTC have issued warning letters and fines related to companies making unsubstantiated health and wellness claims involving cannabis and hemp-derived products.
The FDA requires reliable and competent scientific evidence to support claims. Such claims can be difficult to validate in the cannabis industry, where federal prohibition has hampered research.
What about CBD? Although the 2018 Farm Bill opened the doors to more CBD research, the FDA concluded in 2023 that the existing regulatory framework for foods and supplements was not appropriate for CBD, and that it would work with Congress to determine how to properly substantiate claims for CBD products.
Amidst this uncertainty, it’s essential to prioritize reliable evidence to support your product claims.
Understanding Social Media Advertising Policies
Social media can be a potent tool for cannabis marketing, but it comes with challenges. Major platforms impose strict terms of use, often banning cannabis-related content including any imagery, sale, and even discussion about cannabis. It is important to familiarize yourself with each platform’s terms of use.
Despite these hurdles, compliant advertising strategies can leverage platforms such as X (formerly Twitter) and Pinterest, which at the time of this article’s publication offer more lenient policies. For example, on X, advertisers must be preapproved but can promote brands and include informational content for THC and CBD with some targeting restrictions.
The sale of cannabis products on social media is always prohibited.
Businesses must also navigate the FTC’s regulations on influencer endorsements to avoid misrepresentation as they may be held liable for third-party statements about their products. Endorsers should always disclose any relationship they have with a product they are recommending or reviewing.
Environmental Claims in Cannabis Advertising
As environmental consciousness rises, so do consumers’ expectations. Marketers must substantiate claims of being “environmentally friendly” or “organic” to avoid UDAAP violations. Businesses should consider how consumers are likely to interpret particular claims and avoid using vague terms such as “eco-friendly” or “sustainable,” which may be misleading.
Aligning with state and federal regulations regarding pesticide use and environmental claims is essential to maintain consumer trust. The FTC’s Green Guides sets the tone for environmental claims in cannabis.
Trademarks, Packaging & Branding Guidelines
Understanding trademark protections post-2018 Farm Bill is vital for brand protection.
Following the passage of the Bill, the United States Patent Office (USPTO) has allowed registration of marks for hemp and hemp-derived products containing <.3% or less THC. Federally registered marks offer broader protection, state, and common law protections may apply to legally classified marijuana products with >.3% THC. Cannabis-adjacent products such as t-shirts and caps are also registerable.
Cannabis operators should avoid branding or packaging that may be appealing to children.
Most states containing cannabis regimes prohibit such packaging and deem it an unfair trade practice.
Texting and Calling Compliance
Cannabis companies making calls or sending text messages to consumers should be aware of the Telephone Consumer Protection Act (TCPA) and relevant do-not-call (DNC) laws. Non-compliance can lead to hefty fines and legal repercussions.
The TCPA requires certain levels of consent before cannabis businesses or authorized telemarketers may make prerecorded or auto-dialed calls to consumers. Federal TCPA and DNC laws apply regardless of whether a cannabis business is making calls/texts itself or has hired a telemarketer or affiliate to place calls/texts.
“TCPA lawsuits premised on unlawful calling and texting practices are often bet-the company scenarios. Businesses may face class actions and millions in fines if their calling and texting practices are not TCPA compliant,” Helen Mac Murray, Partner | Mac Murray & Shuster LLP
With consumer protection laws evolving and states beginning to enact their own more rigorous “mini-TCPA” bills, staying updated and ensuring compliance with legal requirements are essential to mitigate risks. TPA lawsuits are difficult to defeat early in litigation and can lead to burdensome and invasive discovery.
In addition to TCPA and DNC laws, short message service (SMS) providers may not allow the promotion of hemp or cannabis via text message.
A notice from email service provider Klaviyo. Captured by Maria Calabrese, Founder Green Bee Life, NCIA member.
Protect Your Marketing Strategy with Compliance
Compliance isn’t just about following rules; it’s about building trust and integrity in your brand. It is the cornerstone of successful cannabis marketing. By prioritizing transparency, evidence-based claims, and ethical practices, you can navigate the complex world of cannabis marketing with confidence. Let’s work together to create a responsible and sustainable future for cannabis marketing.
Mastering Cannabis marketing Compliance: Insights & Strategies from Industry Experts
As the cannabis industry continues to evolve, staying ahead of the curve with compliant marketing practices is more important than ever. To ensure you’re equipped with the knowledge to navigate this complex landscape, don’t miss our upcoming #IndustryEssentials webinar, Committee Insights: Unlocking Compliance: Understanding Cannabis Marketing Regulations, where industry experts will dive deeper into these key compliance guidelines.
Gain invaluable insights on how to protect your brand, foster consumer trust, and grow your business while staying within legal boundaries. Register now and join us to empower your marketing strategies with the tools needed for success!
NCIA Accepting Applications For 2025-2027 Board of Directors Term
NCIA is now accepting applications for eligible candidates to apply for the board through December 20, 2024.
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 December 11 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 or be designated by a company fiduciary to serve on our board.
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 11:59 p.m. on December 20.
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, assisting in the development of strategic relationships, and serving as ambassadors of NCIA, which represents hundreds of member businesses. In general, the NCIA board meets in person twice and conducts 3-4 additional 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 comprise 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.
Member Blog: Retail Dispensary – Vault to Floor Efficiency
Cannabis dispensaries face unique challenges in maintaining security while ensuring a seamless customer experience. Efficiently moving products from the vault to the retail floor is crucial for both operational efficiency and security. According to a report, theft at cannabis dispensaries has surged by over 30% in recent years, underscoring the need for robust security measures. This article will explore the benefits of an efficient vault-to-floor process, the challenges involved, and practical solutions to enhance both security and productivity in dispensaries.
Five Reasons to Prioritize Retail Efficiency
Cannabis dispensaries have evolved significantly since their inception, growing from small, community-focused operations to sophisticated retail environments. However, with this growth has come an increase in internal theft, which can severely impact a dispensary’s profitability and reputation. A well-designed retail layout that minimizes unnecessary movement and maximizes security is critical in mitigating these risks. Efficient vault-to-floor processes not only enhance security but also contribute to a better customer experience by reducing wait times and increasing staff productivity.
Better Customer Experience: An efficient product transfer system means budtenders spend more time assisting customers and less time retrieving products. This improved interaction can lead to higher customer satisfaction and loyalty.
Increased Productivity: By reducing the need for staff to leave the floor, dispensaries can serve more customers in less time, thereby increasing overall productivity.
Loss Prevention: A secure, efficient system for moving products minimizes the risk of internal theft. According to a study, dispensaries with robust security measures report a 20% decrease in product loss.
Security Enhancement: Minimizing traffic to and from the vault enhances security, as frequent access increases the risk of theft and breaches.
Vault-to-Floor Efficiency: Implementing a strategic plan for product movement ensures both employee and product safety. Efficient systems like pneumatic tubes or remote conveyors can streamline this process, making it faster and more secure.
Three (Practical) Ways to Improve Retail Efficiency in Your Dispensary
Pneumatic or Remote Conveyors: These systems can quickly and securely transport products from the vault to the retail floor, minimizing the need for staff to leave the customer area. These are the same systems used in banking and pharmacy drive-thru—two industries that, just like dispensaries, prioritize security and reliability around transaction processes. Dispensaries may deploy a repurposed version of these systems to connect the vault to customer-facing check-out registers. Your store layout will likely be a determining factor in which system or manufacturer can accommodate your needs. In addition, some creative engineering around these solutions can yield a more memorable brand experience for the customer—consider it a bonus perk!
Access Control Systems: Implementing systems that log and control access to different areas of the dispensary can significantly enhance security. Only authorized personnel should have access to the vault, and their entry and exit should be logged automatically. Implementing an Access system is less of a hassle than dealing with mechanical keys. The loss of a key means changing the locks and reissuing keys, plus keys do not enable audit trail capabilities. The loss of an access control card, fob, or pin is only a few keystrokes, and the risk level is eliminated, removing the privileges/rights, all while still having full traceability of when that key was used.
Comprehensive Camera Systems: Surveillance cameras should cover all key areas, including the vault, retail floor, and employee-only zones. This not only deters theft but also mitigates internal loss, all while providing valuable evidence in case of incidents. The configuration flexibility can assist with improving a site’s security and overall efficiency: with onsite or remote eyes to areas for live or historical view, smart alerts notification for real time actions to be taken or improve the time for forensic video investigation to name a few.
It’s Never too Soon to Take Appropriate Action
If you think breaches and other issues will wait for you to feel comfortable spending budget to optimize your layout, efficiency and security, think again. By enhancing customer experience, boosting productivity, and preventing loss, dispensaries can ensure a safer and more profitable operation. When it comes to getting product from the vault to the customer, half-measures won’t cut it. It’s the most critical point of your retail operation, and it deserves that level of consideration when allocating budget and resources to optimize processes surrounding it. Implementing solutions such as pneumatic conveyors, access control systems, and comprehensive camera systems are practical steps toward achieving this goal. Dispensary owners and operators should consider these technologies when planning their retail spaces. By doing so, you can create a safer environment for both staff and customers while optimizing your operational workflow.
Member Blog: A Decade of Data Shows Increasing Support for Cannabis Legalization – CBD Oracle Analysis
CBD Oracle’s combined analysis of 70 polls shows a decade of increasing support for legal cannabis, with 62% of Americans supporting legalization in 2024.
How many Americans support legalizing cannabis? You might think this is easy to answer: you find the most recent poll and look up the number. The problem is that each individual poll is only a snapshot, based on a randomly-selected group of respondents and influenced by all manner of random factors. It’s like rolling a loaded die: yes, the number with the weight behind it is more likely to turn up, but you can still get an unexpected result on any given roll.
The way you tell a die is loaded is by rolling multiple times and looking at the statistics. Likewise, if you want to see what people really think, you need to look at multiple polls and combine the results statistically.
CBD Oracle has done exactly this with a decade’s worth of poll data on marijuana legalization, and the results show that while the majority of Americans still support legal weed, the number peaked in 2022 and still hasn’t recovered.
Combining Poll Data: CBD Oracle’s Monte Carlo Analysis
CBD Oracle first collected every poll taken from 2015 through to July 2024 that asked a nationally-representative sample of American adults whether they support legalizing cannabis.
As well as national polls, CBD Oracle also looked for polls from Florida and South Dakota, where upcoming ballot initiatives will give voters the option of legalizing cannabis in-state. This resulted in 70 polls for the analysis in total.
The polls were combined using Monte Carlo simulations, which is acommon approach to combining political polls. This basically uses the mean and margin of error from each poll to generate multiple simulated “results,” which represent the distribution of results you’d expect if you repeated each poll multiple times. These results were then pooled together, in six-month blocks, to find an overall average for the half-year which accounts for both between-poll and within-poll variability.
The Results: 62% Support Legalizing Cannabis in 2024
The decade of national data analyzed by CBD Oracle shows a clear increase in support for cannabis legalization.
In 2015, 53% of US adults support legalization, but this quickly increased, breaking past three-fifths support in the second half of 2017 (62% support) and reaching a peak of 71% support in the first half of 2022. While support declined slightly after this high-point, it still stood at 62% in the first half of 2024.
Firstly, this is a robust demonstration of something we’ve known for some time: the majority of Americans support legalizing cannabis. However, it also suggests that there may be a decline in support in the past couple of years, with early 2022 showing substantially higher support than 2023 or 2024. This was likely influenced byan SICPA/Harris Poll which found support at 78%, and clearly shows the danger in cherry-picking favorable results when looking for the answer to questions like this.
In the overall context of the results, the apparent decline in recent years doesn’t look so concerning. Prior to this, support was at 63%, and it had declined by to this point again by 2023, but the overall trend over the decade is of increasing support. In addition, the number opposed to legalization remains very low even in 2024, with only 26% against the idea, leaving 12% undecided.
Democrats, Independents and Younger Adults Are More Likely to Support Legal Weed
CBD Oracle also looked at how the results varied based on demographic and other subgroups. While most of these analyses showed no difference, two are worth mentioning.
Perhaps expectedly, political affiliation was a big factor in support for legal cannabis. Based on polls conducted in 2024, 71% of democrats favor legalization, compared to 64% of independents and 48% of republicans. Although republicans are predictably the least supportive, it’s notable that the split is close to 50-50, and it’s possible there will be majority support among republicans in the next few years.
The other major difference was with age. Two-thirds (66%) of adults aged under 45 supported legalization, compared to 60% support among those aged over 45. Here, it’s important to note that both groups supported legalization overall.
Will Florida and South Dakota’s Upcoming Ballot Initiatives Pass?
While there are also relevant ballot initiatives in Nebraska and North Dakota, the two states with upcoming votes and enough polls to analyze were Florida and South Dakota.
For Florida, polls conducted in 2023 showed around 66% of voters in favor of legalization, but the overall result for 2024 declined to 57%. This is concerning for advocates in the state, since the initiative needs 60% support to pass, but there is good news hiding in the details. The two polls conducted in June 2024 found 66 and 64% support, and with a few months of campaigning left, it’s likely that the initiative will pass and Florida will legalize weed.
For South Dakota, the news is less positive. Two polls from 2023 analyzed via Monte Carlo showed 47% support, and the only poll conducted in 2024 put support at just 41.6%. Unfortunately, unless there is a drastic change in the coming months, South Dakotans will have to wait longer to get legal cannabis.
Conclusion: Support for Legal Cannabis Remains High, Despite Recent Declines
CBD Oracle’s analysis shows that support for legal cannabis remains high among Americans, and casts doubt on the relevance of recent declines in support. With a consistent trend towards increasing support and opposition to marijuana legalization remaining low, the data shows that the new “norm” is over three-fifths of Americans supporting legal weed. Individual polls may buck this trend, combining the polling helps you see the overall picture without being misled by individual results.
The tide has already turned; support for legal cannabis is here to stay.
Member Blog: Ensuring Pre-Roll Compliance – Navigating New York’s Stringent Cannabis Testing Regulations
With several states going legal ahead of them, New York State regulators had the benefit of watching other states develop testing programs, which is why New York’s testing regiment goes beyond many of the early adopter states to be one of the most stringent in the nation.
And while the rollout of licenses has been slower than many expected, testing regulations are now in place to ensure the products that do make their way to the public are safe for consumption.
New York also requires products be tested in their final form, which means that pre-rolls, for example, will be tested with rolling papers included so it is vitally important that your rolling papers will also pass the following tests to ensure that all cannabis products are safe for human consumption.
New York requires testing for the following:
Moisture Content and water activity;
Residual solvents and processing chemicals;
Residual pesticides;
Microbial impurities;
Mycotoxins;
Foreign materials;
Eight different heavy metals;
Cannabinoids; and
Terpenes.
Each of these tests are performed to protect consumers and are performed in some capacity by every state that has a legal cannabis program, though every state has its own regulation.
Some of the testing limits are fairly standard, like for example the limits on moisture content and water activity. Because any water activity above 0.70 Aw creates the conditions for mold to grow, which can be harmful if consumed, New York, like most states, caps water activity at 0.65 Aw in flower and pre-rolls. Additionally, dried flower batches must have a moisture content between 5.0-15.0%, with any sample exceeding 15.0% deemed unacceptable.
One of the major differences between New York and other programs is the number of heavy metals for which it tests. Plants absorb heavy metals from the soil, but they can damage all the body’s vital systems, including respiratory, central nervous and even the reproductive system.
While New York tests for the “Big Four” – mercury, cadmium, lead and arsenic (all of which are toxic even at small doses) – it is also one of a handful of states that also add chromium, which can damage the kidneys and liver.
But the Empire State goes even a step farther, requiring additional testing for copper, nickel and antimony.
Microbial and mycotoxin testing
Microbes and mycotoxins represent the greatest threat to human health among the tested items.
Most people are familiar with how microbes can make you sick, which is why New York tests for Salmonella, E. coli and several Aspergillus species of mold, including A. fumigatus, A. flabus, A. niger and A. terreus.
Mycotoxins are a toxic compound produced by molds like Aspergillus and can suppress the immune system and cause liver damage. New York requires testing for two classes of mycotoxins: Aflatoxins and Ochratoxin A. Both have properties that can alter DNA and potentially cause the formation of cancer cells. Testing for mycotoxins help ensure cannabis products are safe for human consumption.
The limit for all mycotoxins in New York is 0.02 micrograms per gram.
All pesticide products sold in New York State must be registered with the state, unless classified as a “minimum risk pesticide” by the federal government. To help producers determine if a pesticide can be used on cannabis, the state’s Department of Environmental Conservation even added “cannabis” and “hemp” to the use/type drop down menu in its pesticide database.
All pesticide use “must be declared for targeted testing” and additionally, New York law also requires labs to specifically test for 70 different pesticides, providing actionable limits.
Ensuring New York Pre Roll Compliance
As we noted, New York law requires all products be tested in their final form, including pre-rolls. According to the law, “the entire pre-roll or a portion of it (depending on size (blunt, 0.5-g, 1-g)) must be prepped and tested for all contaminants of concern,” which means even if your cannabis is clean, your products can fail and be destroyed if your rolling papers or pre rolled cones are not.
Because of that, manufacturers need to protect themselves – and their customers – by carefully selecting suppliers. After all, a study from California’s SC labs found that 11% of rolling papers they tested would fail that state’s testing regiment – which doesn’t even include Chromium, copper, nickel or antimony – and that 90% of rolling papers contained heavy metals with more than 8% containing them at a rate above the allowable limits.
Pre-roll manufacturers in particular need to pay attention to their suppliers and make sure that the company from which they buy their paper takes testing as seriously as they do. This is especially true for blunt products, which contain more moisture and biomass in the hemp wraps, which makes these products more susceptible to fail these compliance tests.
Custom Cones USA’s Compliance Manager André Bayard always recommends making sure your pre-roll paper supplier is a partner.
“It’s important to find a supplier that does the due diligence and is willing to work with you so you know ahead of time if your papers will pass lab tests,” he says.
Bayard notes that when contacted by a manufacturer concerned about heavy metals content causing failures, Custom Cones USA sent samples ahead of time so the manufacturer could pack and test a handful of their completed pre-rolls to make sure the products were clean before committing to a full order.
If your pre-roll supplier is not willing to go through that step, it may be a sign that you should find another pre rolled cone supplier.
Testing failures can be expensive and damaging to a brand, so make sure you not only keep up on the latest changes to your state’s regulations, but also work with a reputable pre rolled cone company to get the cleanest, best tested pre rolled cones you can find. And always ask to see COAs. Even if you are just a dispensary selling rolling papers and empty cones for smoking, offering tested papers and pre rolled cones is crucial to protect your brand and offer quality products to your customers.
Join Us for More Exclusive Insights on the Michigan Marketplace
Striving to stay informed about New York’s dynamic cannabis industry? Mark your calendars for our upcoming New York Stakeholder Summit being held in New York, NY on Tuesday, September 24th.
At the New York Stakeholder Summit you’ll be able to dive deep into the latest trends, regulations, and opportunities shaping New York’s cannabis landscape, including hearing directly from John Kagia Hanna, Director of Policy for New York’s Office of Cannabis Management. All industry professionals are invited; NCIA members attend free. Register here to secure your spot.
Member Blog: Understanding Michigan’s Booming Pre-Roll Market and Cannabis Testing Requirements
There is no hotter pre roll market in the country than Michigan.
With an average unit price of $6.16 – one of the lowest in the country, according to cannabis analytics firm Headset – retailers have sold more than 56.7 million units for a total of more than $349.8 million through the first seven months of 2024. That puts the state of Michigan in the top spot for pre-roll units sold and second place – to much larger California – in pre-roll revenue.
And sales are actually accelerating, with Michigan posting record high pre-roll sales numbers of nearly $54.9 million in July 2024.
For example, moisture content and water activity measurements are indicators of potential mold growth. When water activity exceeds 0.70 Aw, it creates an environment conducive to mold development, which can be detrimental if ingested. This is why Michigan, like many other states, has set a maximum water activity limit of 0.65 Aw for flower and pre-rolls.
Heavy Metals Testing in Michigan
Heavy metals are absorbed through a plant’s roots and can damage all of the body’s vital systems, including the respiratory system, the central nervous system and the reproductive system, even in small doses. That’s why Michigan, like all states, requires products to pass strict heavy metals testing.
But where most states limit testing to the “Big Four” heavy metals of mercury, cadmium, lead and arsenic, Michigan goes a step farther, joining a handful of states that require testing for chromium and even adding nickel to the list as well.
Microbials and Mycotoxins
Though certainly dangerous, heavy metals are less of a threat to human health than microbials and mycotoxins.
Michigan requires testing for standard microbials like yeast, mold, E. coli and salmonella, as well as Aspergillus flavus, fumigatus, niger and terreus.
As for mycotoxins, toxic compounds produced by molds, such as Aspergillus, can suppress the immune system and cause liver damage, so testing for them is certainly a health and safety issue. Michigan law requires testing for Aflatoxin B1, Aflatoxin B2, Aflatoxin G1, Aflatoxin G2 and Ochratoxin A, requiring all to be less than 20 parts per billion to receive a passing grade.
Pesticides and residual chemicals
Michigan allows the use of some pesticides and other chemicals on cannabis, but only those appearing on the Michigan Marijuana Pesticide List, which was updated in early 2024. Pesticides on that list have been reviewed for use by the Michigan Department of Agriculture and Rural Development (MDARD) and may be used in accordance with the label instructions.
For testing purposes, state law requires labs check cannabis for 58 different residual chemicals, each with their own action limits.
Keeping your pre-rolls in compliance
Michigan regulations require tests be conducted in the product’s “final form,” though that applies to the flower itself, according to an email from the Cannabis Regulatory Agency.
“If the pre-rolls were tested as flower, that would be considered final form testing unless something was added to materially change the product,” they wrote.
But with so much time and effort spent ensuring your cannabis stays in compliance with state regulations, why would you want to pack it into pre-rolled cones that haven’t also been tested?
In fact, a study from California’s SC labs found that 11% of rolling papers they tested would fail that state’s testing regiment, which doesn’t even include Chromium, and that 90% of rolling papers contained heavy metals with more than 8% containing them at a rate above the allowable limits.
“Even if testing is not required, any one issue can harm your brand,” says Custom Cones USA Compliance Manager André Bayard. “It’s important to make sure you work with a company that is as focused on keeping your products in compliance as you are.”
Bayard always recommends confirming your pre-roll supplier has COAs available to prove their products are clean and will pass tests, or will send you samples for you to test before committing to a full order.
“Make sure your supplier is focused on those requirements and is trying to set the industry standard with their products,” Bayard says.
Join Us for More Exclusive Insights on the Michigan Marketplace
Striving to stay informed about Michigan’s dynamic cannabis industry? Mark your calendars for our upcoming Michigan Stakeholder Summit being held in Detroit, MI on Thursday, September 12th.
At the Michigan Stakeholder Summit 2024 you’ll be able to dive deep into the latest trends, regulations, and opportunities shaping Michigan’s cannabis landscape, including hearing directly from Brian Hanna, Executive Director of Michigan’s Cannabis Regulatory Agency. All industry professionals are invited; NCIA members attend free. Register here to secure your spot.
Member Blog: The Importance of Job Descriptions in the Cannabis Industry
As the cannabis industry continues to grow, businesses face unique challenges, particularly in Human Resources. One critical, yet often overlooked aspect, is the creation and maintenance of clear, effective job descriptions. At Deliberate HR, we understand the well-crafted job descriptions are more than just a formality- they are essential tools for success in the cannabis sector.
Why are job descriptions so important?
Defining Roles and Responsibilities
Job descriptions provide clarity by defining the specific roles and responsibilities of each position. In an industry as dynamic as cannabis, where job roles can vary widely- from cultivation to sales to compliance- clear definitions help employees understand their duties and how they contribute to the organization’s goals.
Attracting the Right Talent
In a competitive job market, a well-written job description can be the difference between attracting top talent and struggling to fill positions. A precise and appealing job description helps potential candidates understand the role and align their skills with the company’s needs, making the recruiting process more efficient and effective.
Ensuring Compliance and Legal Protection
Given the complex regulatory environment in the cannabis industry, job descriptions play a crucial role in compliance. They ensure that roles are aligned with the industry regulations, including safety standards and legal requirements. Additionally, job descriptions can serve as legal documentation, protecting the company in cases of disputes related to employee duties or performance.
Enhancing Employee Engagement and Retention
When employees understand their role and how it fits into the larger company mission, they are more likely to feel engaged and motivated. Job descriptions that clearly outline growth opportunities within the company can also boot retention, as employees see a clear path for advancement.
Supporting Organizational Structure and Growth
As cannabis businesses expand, job descriptions help maintain an organized structure. They ensure that each role is defined and aligned with the company’s strategic objectives, facilitating smoother scaling and growth. This is especially important in a fast-evolving industry where companies need to adapt quickly.
At Deliberate HR, we recommend that cannabis businesses approach job descriptions with intention and precision. Here are a few tips:
Be specific and clearly define the duties, responsibilities, and expectations for each role.
Specify the qualifications needed, including industry-specific knowledge, licenses, or certifications.
Address any legal or regulatory responsibilities associated with the role.
Regularly review and update job descriptions to reflect changes in the role or industry.
Job descriptions are more than just a hiring tool- they are a strategic asset that can drive success in the cannabis industry. By clearly defining roles, ensuring compliance, and aligning employee expectations with company goals, well-crafted job descriptions are a cornerstone of effective HR Management.
Member Blog: Cannabis Risk in Distribution – Navigating the Road of Theft, Auto, and More
Welcome back to the unfolding chapters of our Cannabis Risk Management series. In our preceding blogs, we intricately explored the risks woven into cultivation and the dynamic challenges faced by the retail sector. Now, our compass directs us towards the distribution sector, where the landscape extends far beyond the boundaries of a single location.
The Mobile Risks of Cannabis Distribution
At the beating heart of the cannabis industry, distribution orchestrates the seamless movement of products from cultivators to consumers. However, this fluidity introduces unique risks, with theft and auto incidents assuming prominence in the dynamic narrative.
Theft in Motion: A Growing Threat on the Move
Unlike the static nature of cultivation and retail spaces, the distribution sector is marked by constant motion. The mobility of distribution vehicles renders them susceptible to theft, both in transit and during stops. The repercussions extend beyond the immediate loss of inventory, amplifying the financial impact. Navigating this evolving threat demands heightened vigilance and strategic risk mitigation.
Auto Incidents: The Road Ahead is Paved with Risks
Transporting cannabis products along the highways introduces inherent risks of auto incidents. From road accidents causing damage to products and vehicles to potential liabilities, the road ahead is fraught with financial pitfalls. To safeguard the integrity of the distribution network, a comprehensive insurance policy specifically tailored to cover auto incidents becomes indispensable.
Mitigating Risks in Cannabis Distribution
Strategic Route Planning: Mapping the Path to Security
In the dynamic landscape of distribution, strategic route planning emerges as a linchpin in theft prevention. Evading high-crime areas, implementing secure parking protocols, and leveraging technology for real-time tracking are suggested ways to build a robust risk mitigation strategy. By fortifying the journey from cultivator to consumer, strategic route planning becomes a proactive defense against evolving threats.
Property in Transit Coverage: Protecting Cargo on the Move
A vital aspect of safeguarding cannabis inventory is ensuring robust property in transit coverage. This specific coverage protects the cannabis products while they are on the road, addressing potential losses due to theft, accidents, or other transit-related incidents. Implementing this coverage can significantly reduce the fiscal impact of such events.
Advanced Fleet Management for Safety: Beyond the Roads
Elevating the safety and security of distribution vehicles involves investing in advanced fleet management systems. Real-time tracking, continuous monitoring of driver behavior, and implementation of preventive maintenance measures collectively reduce the risk of both auto incidents and theft. This holistic approach not only protects the products but also ensures the well-being of the team steering the distribution network.
Employee Training for Security: Empowering the Frontline
Empowering the distribution team with comprehensive training in security protocols and emergency response measures is foundational. A well-trained team becomes an invaluable asset, making a significant difference in minimizing the impact of theft or auto incidents on business operations. Their heightened awareness and proactive response contribute to a secure and resilient distribution process.
Tailored Insurance Solutions for Distribution
As in cultivation and retail, standard insurance policies may fall short in addressing the evolving risks faced by cannabis distribution. Collaborating with an insurance advisor specializing in cannabis is not merely advisable; it is imperative. Tailored policies comprehensively covering theft, auto incidents, and other challenges unique to the distribution sector provide a robust safety net for operations.
As we embark on the next leg of our journey into the world of cannabis manufacturing, unraveling diverse risks related to work comp, fire, spoilage, humidity, smoke, and equipment breakdown, join us in this quest for knowledge and empowerment. Our mission is to equip you with unparalleled insights and insurance solutions, fostering sustained success in the ever-evolving landscape of the cannabis industry.
For more information, please reach out toValerie Taylor, Vice President (National Cannabis Practice Leader), Liberty Company Insurance Brokers.
Member Blog: How to Master the Cannabis Retail Landscape
The cannabis industry is thriving, but with exciting opportunities come significant challenges. For dispensary owners and cannabis wholesalers, staying competitive means understanding and adapting to a rapidly evolving market.
The Competitive Cannabis Dispensary Landscape
The cannabis retail market is booming like never before. According to Statista, the global legal marijuana market was valued at an impressive $17.5 billion in 2019 and is projected to reach approximately $73.6 billion by 2027. This rapid growth presents both exciting opportunities and intense competition. In fact, with over 7,000 dispensaries operating across the United States alone, simply offering high-quality products is no longer sufficient to capture consumer interest and loyalty.
A recent report from BDSA, a leading cannabis market research firm, underscores that consumer preferences are continuously evolving. Factors such as changing regulations, the emergence of new consumption methods, and heightened awareness of wellness trends all contribute to this dynamic environment. Retailers must not only stay ahead of current trends, but also be adaptable and responsive to shifts in consumer behavior to maintain relevance in the market.
In such a competitive and fast-paced landscape, understanding your customers’ needs and preferences is paramount. This means actively engaging with your customers, gathering feedback, and leveraging data to inform product offerings and marketing strategies. By doing so, cannabis retailers can cultivate stronger relationships with their customers, ensuring they remain a trusted choice in an ever-evolving industry.
The Importance of Driving Customer Loyalty
In a competitive market, driving customer loyalty isn’t just beneficial—it’s essential for long-term sustainability and growth. Research from Harvard Business Review has shown that increasing customer retention rates by just 5% can lead to remarkable profit increases ranging from 25% to 95%. This statistic highlights the critical importance of nurturing relationships with customers. Loyal customers not only make repeat purchases, contributing to steady revenue streams, but also become passionate brand advocates. Their positive word-of-mouth can significantly enhance brand reputation, drawing in new clientele who trust the recommendations of their peers.
Furthermore, according to a comprehensive study by Zendesk, a staggering 95% of customers share their negative experiences with others, while almost half take to social media to publicly broadcast their dissatisfaction. This underscores the importance of addressing customer service issues promptly and effectively. On the flip side, research indicates that more than half of consumers are likely to make additional purchases after a positive interaction with a brand. This illustrates that exceptional customer service can create a virtuous cycle of loyalty and repeat business.
For cannabis retailers, where competition is fierce and customer choices are plentiful, delivering exceptional customer service can significantly impact the bottom line and foster long-term success. By investing in customer experience strategies, retailers can not only retain existing customers, but also cultivate a loyal customer base that propels growth and enhances brand loyalty in an ever-evolving market landscape.
Practical Next Steps for Improving Customer Loyalty
Unfortunately, there is no straightforward or single answer on how to drive customer loyalty. However, there are many things that you can implement within your business, including employee education, that will help you along the way.
Free Resources
LeafLink’s Retailer Academy is a freeresource designed to empower cannabis retailers to excel in a rapidly changing landscape. Retailer Academy offers comprehensive training modules and resources that cover essential topics such as customer engagement, inventory optimization, and marketing strategies.
By providing valuable insights and best practices, the Retailer Academy equips dispensary owners with the tools they need to enhance customer loyalty and drive business growth, ensuring they thrive in an increasingly competitive market. Whether you’re just starting out or looking to refine your approach, LeafLink’s Retailer Academy is your partner for success in the cannabis retail world.
Unit 1 of LeafLink’s Retailer Academy teaches you how to gather and analyze customer data effectively. Stop guessing what your customers truly want – Unlock data-driven insights to skyrocket sales.
Here’s what you’ll learn with the FREE eBook.
Optimize Inventory: Stock exactly what your customers crave, eliminating stagnant products.
Empower your Staff: Transform your team into customer insights experts.
Find Nuggets in Reviews: Extract valuable trends and feedback from social media and online reviews.
Master Active Listening: Build staunch customer loyalty through communication.
Easily Break-Down Data: Learn to simply analyze customer data and generate actionable insights.
Wrapping up
The cannabis retail landscape is competitive, but with the right strategies, you can thrive. LeafLink’s Retailer Academy offers the tools and insights you need to grow your business, drive customer loyalty, and stay ahead of the curve.
By understanding your customers, optimizing your inventory, and empowering your team, you can create exceptional experiences that foster loyalty and boost profits. Don’t just survive in the cannabis market—thrive with LeafLink’s Retailer Academy.
