Best Practices for Cannabis Companies and Consumers During COVID-19
In this time of national crisis, the cannabis industry has come together in a continued commitment to ensuring the health and wellbeing of the public. Cannabis companies have donated personal protective equipment to first responders, hired workers laid off in other industries, and some businesses have even adapted some of their manufacturing capabilities to produce hand sanitizer. As this pandemic has affected every aspect of our lives, we must all do our part to flatten the curve. We are working with state health officials and medical and public health professionals to ensure continued safe access to cannabis medicines and products. To this end, we are providing information to help keep you healthy and ensure safe and responsible cannabis use.
What can the industry do to keep our communities safe?
Industry has been proactive in implementing social distancing measures in accordance with guidelines issued by the Centers for Disease Control (CDC) to ensure the health and safety of our communities, including those most vulnerable to COVID-19.
Proactive measures include:
Increased sanitation and safety measures pursuant to regulations set by the Occupational Health and Safety Administration and local health departments.
Screening employees for symptoms of illness.
Limiting customers and employees in stores, and to the extent allowed by local law conducting transactions through delivery and curbside pickup.
Provide additional or distinct store hours for high-risk groups, like customers over the age of 60.
Calling on cannabis authorities to reduce medical caregiver and patient application fees to limit travel by vulnerable members of our community.
What can cannabis consumers do to stay safe?
(1) Consult with a medical professional before consuming cannabis if you are experiencing one or more of the symptoms of COVID-19.
(3) Do not share joints, pipes, vapes, or other products shared mouth-to-mouth.
(4) Avoid group consumption and follow social distancing guidelines.
(5) Get cannabis from licensed and regulated sources.
(6) Cannabis patients and consumers should consult with medical professionals and CDC guidance to identify the safest methods of use.
(7) If possible, consider choosing non-pulmonary methods of cannabis for consumption
(8) Don’t spread false information about cannabis as a cure or treatment for COVID-19
Important Note from the International Association for Cannabinoid Medicines (IACM):
“There is no scientific evidence that individual cannabinoids – such as CBD, CBG or THC – or cannabis preparations protect against infection with the SARS-CoV2 virus or could be used to treat COVID-19, the disease produced by this virus… Please do not pass on false information that is circulating on the Internet [about cannabis preparations and cannabinoids as a cure or treatment for the SARS-CoV2 virus/COVID-19 disease].”
The cannabis industry is growing rapidly. As more people look to cannabis for the health benefits it provides, the industry is on an upward trajectory and now is a great time to get in on the ground floor.
If you are starting or growing your cannabis business, the people you hire will be very important. Your staff will include customer service reps which will be the face of your business, people who work behind the scenes to make sure you are compliant and organized, a marketing team and those in the warehouse who are responsible for making sure your products arrive safely and securely.
While the market is growing, the industry is quite competitive and you need to do what you can to make sure your business stands out. Hiring the right people can give you that edge. With that in mind, this article will explore the best ways to attract talent to your cannabis business.
Seek the Help of a Specialized Search Firm
It’s important to remember that the best candidates might not be the ones looking for jobs. They are often people that are already in respected positions and, with an attractive enough package, you may be able to lure them in to start working for you.
Certain search firms will know exactly where to look for the talent you need. They will have a network of qualified people that they will sort through before using other tactics. This will ensure that they are picking from a pool of experienced candidates who will know what it takes to help your company grow.
When considering what type of search firms will be best, look into retained recruitment and executive recruitment firms. Retained recruiters are dedicated to finding the ideal candidate for your position and they won’t stop until their job is done.
Executive recruiters, on the other hand, are skilled in finding candidates for top-level positions. Consult them to find qualified people who will see to it that your company is running smoothly and reaching its goals.
Show Your Company in the Best Light Possible
If you are looking to find top tier candidates for your positions, you have to show your company in the best light possible. Remember, you will be picking from a pool of highly skilled candidates who may have their choice of positions to choose from. Therefore, not only will it be important for the candidate to make a favorable impression, it will be important to the company as well.
Companies can do this by offering comprehensive compensation packages including competitive pay, benefits, and perks. A great work environment will also be a bonus.
You also want to do all you can to impress the candidate in the interview process. During this process, be sure to not only ask the candidate questions about themselves but leave them plenty of room to ask you questions as well. Bringing in members of the staff to meet them will also make them feel as if you are showing a real interest in them and want to make them part of your team.
Establishing your brand is another thing you can do to make your company look impressive. Your brand should have a logo, a well-designed website, a strong online presence, a clear mission statement, and a strategic marketing strategy before even attempting to look for top tier talent. A lack of these qualities can make qualified candidates run the other way.
Accurate Job Descriptions
Whether you are going through a search firm or doing your own headhunting, having an accurate job description will be a real bonus. It may seem obvious, but leaving out valuable information like the basic duties of the job, the hours, the benefits and pay offered, the location and anything else that might be relevant can make candidates skip over your ad and move on to the next.
Be sure to add as many details as possible when creating your wanted ads.
Offer Smooth Onboarding
Once you have decided on a candidate you would like to hire, follow up with a smooth onboarding process.
It may be surprising to find out how easy it is to lose qualified candidates during the onboarding process due to lack of communication, lack of support of just general confusion. Make sure that you maintain plenty of contact with your employees while they are becoming integrated into your system. Provide helpful feedback and encourage them to share their feelings and opinions during this pivotal time.
If you are looking to make your cannabis business stand out by hiring a first-rate staff, the steps you take during the hiring process are very important. Team up with the right search firms, make sure you look impressive to the talent, provide accurate job descriptions and continue to support them throughout the onboarding process. Then you can look forward to having a team that will help your company grow.
Jacob Carlson is the Co-Founder and CEO of Fortuna Business Solutions. Fortuna is proud to be one of the first east coast staffing agencies in the cannabis industry being based out of Portland, Maine. Jacob is a serial entrepreneur having previously co-founded a corporate event service (Just Enjoy!) and social media automation tool (RapidCrowd), and he is primed for scaling his next venture with his two co-founders, the Ellis brothers.
Hiring in the cannabis industry is hard, Fortuna Business Solutions makes it easy. We help businesses in the cannabis, CBD and hemp industry find quality candidates to hire on to their team. If you are tired of weeding through thousands of unqualified applicants or struggling to find someone with specific experience, we can help.
Webinar Recording: In the Weeds – Cannabis Advocacy from the Statehouse to Capitol Hill
Watch this recent webinar from March 31 for a lively discussion about how to leverage your company, customers, and industry partners to achieve your state, local, and federal advocacy goals. Whether cannabis is already legal in your state or on the path to being so, learn the advocacy basics to ensure the industry’s, and your company’s, long-term success.
This panel of industry experts discuss:
– What types of activities and interactions with government officials trigger lobbyist registration requirements;
– Best practices for forming coalitions to achieve your advocacy goals, whether at the ballot box or in the statehouse;
– How to form a PAC or other advocacy vehicle; and
– What types of gifts to public officials may be off-limits because of the nature of your cannabis business.
Speakers
Moderator: D. Michael Stroud, Jr.
Partner at Nossaman LLP
Michael Stroud, Jr. brings more than 15 years of legal and legislative policy expertise in border security, infrastructure, national security, tax, transportation, trade, state and local municipal government, and water and wastewater utility. He has advised clients on federal campaign and lobby laws, gift rules, ethics compliance and investigations. Michael has also led efforts on appropriations legislation to obtain legislative changes to advance clients’ interests in the cannabis industry.
Amber Maltbie
Partner at Nossaman LLP
Maltbie is a campaign finance and election law attorney who advises clients in the cannabis industry, including trade associations, private, and publicly traded companies. She advises them on the permissibility of making contributions at the state and local level, preparing and filing campaign finance reports, tracking and notifying public officials who have received client gifts. She has helped develop a banking relationship and facilitated getting its PAC banked. She also advises on support and promotion of ballot measures and legislative advocacy. Amber’s practice covers all 50 states.
William Powers
Partner at Nossaman LLP
William Powers focuses his practice on political law and campaign finance issues. Drawing on his decade-long career in government, including as a top enforcement official at the Federal Election Commission (FEC), Bill helps clients navigate laws related to campaign finance, lobbying, ethics, gift and gratuities and pay-to-play. His clients include companies and nonprofits at the cutting edge of their industries, and he brings a collaborative and flexible approach in helping them achieve their advocacy goals in elections, the legislative arena, and the ballot measure and initiative process.
Update On the Prospects of Federal Relief for the Cannabis Industry
by Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations
The last few weeks have been difficult for everyone, and most people are justifiably concerned about what the future holds for their health, safety, and livelihoods. This is certainly the case in the cannabis industry, so we wanted to provide an update about where things stand regarding cannabis businesses and federal relief.
As the debate over the most recent federal coronavirus aid package was raging, NCIA and our allies were working tirelessly to urge members of Congress to make legal cannabis businesses eligible for loans and direct payments. A coalition of trade groups also sent a letter to congressional leadership and key committees specifically asking them to include cannabis businesses in consideration for loans through the Small Business Administration.
Unfortunately – but understandably – lawmakers were more concerned with providing assistance to all Americans in need as quickly as possible, and did not incorporate many requests related to special issues and disproportionately impacted industries. However, we received a lot of positive feedback from a number of congressional offices.
As things currently stand, individual cannabis industry employees who filed taxes last year should be eligible for the direct household payments included in the latest relief legislation as long as they meet the standard criteria. It may also be possible for states to use some of the funds they receive from the federal government to support the industry. But for the time being, cannabis businesses are not eligible for SBA loans or direct federal funding.
This battle is far from over though. Congress is in recess until the end of April, at which point efforts will commence on approving the next stage of coronavirus relief funding. Rest assured, NCIA’s dedicated Government Relations and Public Policy team is working night and day to make sure that the cannabis industry is included in the next round of funding so that we can continue to provide our communities – particularly medical cannabis patients – with the safe and reliable access they need. In addition to pushing for SBA loans and direct funding eligibility, we are also exploring ways to remedy some of the other financial problems caused by outdated federal policies, as well as urging state governments and regulators to continue to allow some form of cannabis access for the duration of the pandemic response.
At a time when cannabis businesses are being increasingly recognized as a vital component of public health and economic well-being, they deserve to be treated fairly and have access to the same benefits other businesses are receiving. We will keep you posted on any developments, and please contact your members of Congress to respectfully request that they explicitly include the cannabis industry in future federal aid packages.
Committee Blog: Working With Your Local Government as a Cannabis Processor
If you want to open and operate a regulated cannabis business, there’s no avoiding local government. Every state grants different amounts of power to towns and cities, with some allowing localities to ban cannabis businesses outright, and others simply giving them the same power over time, place, and manner of operations that they have for other businesses. But since cannabis can be a hot-button issue, a proposal to open a cannabis facility often attracts far more attention than opening any other type of business.
To help NCIA members and other cannabis entrepreneurs navigate local government, we at the State Regulations Committee have launched a series of blog posts, with each taking a close look at a different type of cannabis license. Last month, we published our first post, “Working With Your Local Government as a Cannabis Cultivator.”
Today, we’re moving one step down the supply chain and talking about cannabis processors (sometimes also called manufacturers or infusers). Since state programs vary widely, with some licensing cannabis processors independently and others combining processing with cultivation (or even a single vertically integrated license), we will be focusing on the operations rather than the licenses themselves. If you’re seeking a combined license, be sure to read the blog for each activity your business will be allowed to engage in — while there is some overlap, there are also some major distinctions in how different operations can most effectively interact with municipal officials, and you will need to be well-versed in answering questions unique to each phase of your business.
ECONOMIC IMPACT
Like the three rules of real estate being “location, location, location,” the three rules of economic development are “jobs, jobs, jobs.” When proposing a new business in a town or city, local officials are going to want to know how many jobs it will bring, as employment can put money directly into the hands of their constituents and have ripple effects throughout the local economy.
In addition to the raw number of jobs your business will create, it’s also important to highlight the qualifications for those positions. Processing facilities often need to have highly qualified individuals with PhDs or other certifications to manage production processes, and officials will be happy to see the salaries that come along with such positions. Entry-level jobs, such as working production lines, are also worth talking about — even though they have lower salaries than someone with a doctorate, it’s usually much easier to hire local talent for these positions. Any commitment to hiring locally as much as possible is usually a big plus to politicians. Additionally, be sure to mention how much these new employees will add to the local economy, through all the typical living spending they will do.
Setting up and maintaining your facility will also have a major economic impact, especially in smaller communities. If you’re constructing a building to suit, get estimates from your contractors about the jobs your project is supporting, and let officials know how much you’re investing in the build-out. If you’re moving into an existing space, you’ll almost certainly be doing significant renovations to meet the state’s strict safety standards, which is also worth talking about. Towns and cities that are struggling economically will often be very happy to see unused commercial space become occupied, especially if those properties are being improved. If possible, also identify local contractors (like electricians) or suppliers (like lumberyards) you will use for construction.
Finally, there are direct payments to the local government. While officials love to see any sort of economic development, they still have services to provide and a budget to balance, and will want to know what the municipality will be receiving directly. Calculate your building’s expected property taxes, both on an annual basis and 5-10 years out — since cannabis licenses are usually very difficult to re-locate, emphasize that you are in it for the long haul. Be sure to understand your states’ tax structure, and know whether there are any local taxes that the town will receive, or if towns that host cannabis licensees receive any portion of state tax revenue.
PUBLIC SAFETY
The top public safety issue in local officials’ minds when it comes to cannabis processing is almost surely to be butane fires and explosions. This is for good reason — while hydrocarbon extractions can be very safe and effective when done properly, when done improperly they can be incredibly dangerous. City councilors or fire chiefs may have read some of the many headlines about butane-related accidents over the past few years, and it’s up to you to address these concerns directly and honestly. Of course, before diving into these conversations, check to see if the municipality or county has already banned such extraction methods, as some state laws allow local control in this area.
If you’re not planning to perform hydrocarbon extractions at your facility, be sure to tell that to your local officials. They may not realize that there are many other types of cannabis extracts that do not present such safety risks, such as CO2 extracts (carbon dioxide is not flammable, and similar processes are used for decaffeinating coffee) or bubble hash (which uses only cold water). If you have zero interest in ever using hydrocarbons in your facility, putting this agreement into writing may make local officials even more comfortable.
If you do plan to perform hydrocarbon extractions, educating officials on the risks and safety measures is paramount. Most states have extensive regulations on how extraction labs must be set up, which you can email or print out for meetings to demonstrate what you’ll need to comply with. Since the vast majority of butane-related accidents have come from illegal labs with makeshift equipment, show officials the equipment you’ll be using, emphasizing the price and professional quality. The manufacturers may even have fact sheets or other information you can share to demonstrate the safety of their equipment. As you educate officials on your methods and equipment, be sure to keep open lines of communication with the fire chief and building inspector, who will have the most expertise and authority on this aspect of public safety.
Beyond the processing-specific concerns about fires and explosions, all cannabis businesses will have to deal with officials’ concerns about theft. These may be particularly acute for processors since your end products have a much higher value-to-weight ratio than raw cannabis plants. To address these concerns, explain the security requirements in state laws and regulations, and any areas where you are going above and beyond what is mandated. Things like external security cameras and floodlights can both protect your own business and your neighboring community, making a cannabis business a net gain to public safety.
COMMUNITY IMPACT
Once economic development and public safety have been considered, local officials will wonder about the broader community impact of your cannabis business in areas like odor or traffic. This is an easy topic for processors, as they arguably have the smallest impact of any type of cannabis operation.
Processors are generally much smaller than cultivation facilities, and since they’re not full of growing cannabis plants, they also have much less odor to address. Unlike a dispensary or retailer, processors are not open to the public, so town planners won’t need to worry about an influx of traffic. Once you explain how you’ll be operating, local officials should be able to rest easy knowing that to an outside observer, your business will be virtually indistinguishable from a commercial kitchen or light manufacturing facility. If there are still concerns about odor, inform them that modern odor mitigation technology can completely eliminate any odor from leaving your facility.
GOING FURTHER
Once you’ve explained what you’d like to do and how you think your facility would fit into the local community, the conversation isn’t over — it’s just beginning! If the local government needs more time to consider your proposal, then it’s good to keep in close touch and address any additional concerns they have as they arise. If the local officials are already comfortable with your business and are welcoming it into their community (or if your state law doesn’t give local officials the power to stop you from opening up), it’s still great to build that relationship and keep an open dialogue.
Elected officials usually need to know a little bit about everything, but don’t have the bandwidth or in-house expertise to go very deep on most subjects. That’s where you, someone working full-time in the cannabis industry, come in — you almost certainly know more about state laws and regulations than they do, which is a great opportunity for you to serve as a resource. If you hear about changes in the law or proposed bills that could impact their town or city, send over news articles or bill text to help keep them informed.
Once you’re open, it’s always great to offer tours of your facility. This will help officials gain first-hand knowledge of what you actually do, and in municipalities where legal cannabis is new, it can help dispel negative stereotypes and demonstrate how professional you and the rest of the regulated cannabis industry are.
Be sure to stay tuned for future installments in this series, where we will be addressing other cannabis license types. Our next blog will focus on retail.
Welcome to NCIA Today – tune in for our latest episode!
Host Bethany Moore, NCIA’s Communications Manager and host of NCIA’s weekly Podcast ‘NCIA’s Cannabis Industry Voice‘ brings you an in-depth look at what is happening across the country in federal cannabis policy reform and with NCIA.
Off the top, Bethany discusses NCIA’s response to the COVID-19 pandemic, including postponing NCIA’s Cannabis Caucus event series originally scheduled throughout the month of March.
We also check in with NCIA’s Director of Media Relations, Morgan Fox, to hear some of the recent highlights in the news surrounding cannabis policy reform.
Bethany gives a summary of the key findings from the Illicit Market Summit held in Boston in late February. We also check in with NCIA’s Executive Director and Co-founder Aaron Smith to hear more about the industry and NCIA’s response to COVID-19.
The growing coronavirus outbreak in North America has affected businesses of all sizes and sectors, including cannabis dispensaries. Many states have categorized medical dispensaries and retail cannabis stores as essential businesses. But it’s extremely important that any cannabis retailer choosing to stay open during this time take extra precautions to keep their staff and customers safe while still staying compliant with local and emergency laws.
COVID-19 Plan
5 Steps to Get Started With Online Ordering and Delivery Service
Use technology to stay compliant and make your vision come to life
You will have to rely more on retail technology while human interaction and in-person sales are not possible. Online ordering, delivery, line queuing, and no-touch ID verification policies will all require reliable tech. Check with your current POS if they have a workaround to facilitate the new process and integration with an online ordering platform.
Re-design your store layout
Change your store layout to further limit exposure. Take all of the products out of display cases and instead use that space to store fulfilled online orders. Use ropes or another barricade to ensure a six-foot distance between customers and sales counters. Install sneeze guards in front of checkout stations. Use tape or signage to mark where customers should be standing (six feet apart).
Develop operating procedures
These changes will require an update to your operating procedures. You will need a few employees dedicated to packing online orders and another employee on the floor ensuring customers are far enough apart and surfaces are consistently sanitized. If employees are feeling sick, require them to stay home. Some dispensaries are even taking the temperature of employees before every shift.
Train & protect your staff
Be sure to limit the number of customers in the store at a time, so there is ample distance (3-6 feet) between people. Protect your employees and customers with the following equipment:
Touchscreen-friendly gloves for employees
Alcohol swabs for any surface customers touch at the POS
Hand sanitizer
Masks
Lysol or other CDC-approved antibacterial cleaning spray
Faai Steuer is VP of marketing at Cova Software, the fastest-growing cannabis retail POS in North America. An entrepreneur at heart, she has a passion for growing startups and building brands. With 20 years of marketing experience in CPG and retail tech, she lends her knowledge and best practices to help cannabis entrepreneurs in the U.S. and Canada open their first store and grow their business through vital thought leader content.
Cova is an award-winning, seed-to-sale compliant POS with an intuitive design and robust tech platform, making it the most reliable cannabis POS system on the market. Cova helps dispensaries simplify compliance, raise the customer experience bar, and increase revenue through automated compliance capability, express check-out app, and integrated delivery solutions. Learn more at www.covasoftware.com.
Webinar Recording: A Spring Federal Policy and Government Relations Update
In this webinar from the morning of Friday, March 27 at 10:00 AM MT, NCIA’s Director of Public Policy, Andrew Kline, presents an update focused on federal cannabis policy issues taken up by NCIA’s Policy Council, including vaping illnesses, highlights of the findings from the Illicit Market Summit, and comments to be submitted to the DEA and NIDA. We also explore the COVID-19 responses across the United States.
Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations, shares information about how to stay politically active on behalf of cannabis policy reform while still practicing physical distancing during the COVID-19 pandemic. We explore the impact that COVID-19 is having on small cannabis businesses, plus an update on the action and movement we’ve seen in Congress, including a recent letter sent regarding Small Business Administration loans for cannabis businesses.
Speakers
Michelle Rutter Friberg
Deputy Director of Government Relations, National Cannabis Industry Association
Michelle Rutter Friberg is deputy director of government relations for the National Cannabis Industry Association. Prior to working for NCIA, Michelle was a research analyst at a government affairs firm in Washington, D.C., where she analyzed and tracked legislation on numerous issues. Michelle graduated from James Madison University in 2012, receiving her Bachelor of Arts degree in Political Science with a minor in History. During her studies, she held a year-long internship with Virginia House of Delegates member Tony Wilt (R). There, she communicated with constituents, businesses, and government officials alike, facilitating meaningful conversations. Michelle was also a member of a pre-law fraternity where she planned events and hosted social functions that sought to encourage long-lasting professional and personal relationships with members. A native Virginian, Michelle currently resides in the Washington, D.C. neighborhood of Capitol Hill.
Andrew Kline
Director of Public Policy, National Cannabis Industry Association
Andrew Kline is NCIA’s Director of Public Policy. In this new role established in early 2019 at NCIA, Andrew leads NCIA’s substantive public policy efforts, striving to prepare and protect the state-legal cannabis industry. He will also lead NCIA’s Policy Council, a group of NCIA members focused on influencing federal and state public policy. Kline most recently served as President of the National Association of Cannabis Businesses (NACB), the first self-regulatory organization for the high-growth cannabis industry. At the NACB, Andrew led the creation of national standards for the state-legal cannabis industry, oversaw its standards governance board, and led day to day operations and strategic planning. Kline has a deep and celebrated background in public policy, law enforcement, and coalition creation/management. He is renowned for his ability to create solutions to complex domestic and global public policy issues that appeal to both private and public constituencies.
NCIA’s Human Resources Committee hopes that you and all your employees are healthy during this outbreak. Many states continue considering cannabis-related business as ‘essential,’ so the HR Committee met to discuss ways NCIA member companies could navigate the impact of the COVID-19 outbreak on our cannabis businesses to help ensure you and employees minimize your risk of spreading and contracting the virus in the workplace.
We are confident that our fellow member companies strive to create a safe and healthy work environment for their employees, but we have brainstormed a few extra precautions cannabis companies may want to consider during this outbreak.
One of the best resources we have seen thus far are the WHO guidelines put in place for workforces.
Some additional best practices we have seen from dispensaries, processing facilities, and cultivation sites are as follows:
Time Login/Logout
Consider using an app so employees can login/logout on their own phones versus signing in/out, using a time punch system, or everyone logging in/out on the same computer system.
Cash Handling
We know that cash handling & computers being used by multiple people is a concern for many employees. Consider purchasing gloves for employees to use. If gloves aren’t available due to medical personnel needing these supplies at this time, offer additional breaks so employees can wash their hands between each transaction with a customer.
Product Packaging Handling
If you’re in a state where customers are allowed to touch the product packaging or sample containers, consider also having gloves available for customers to use. You should also have some form of cleaning wipes available to wipe down packaging, sample containers, etc. after each customer has touched them, along with wiping down cabinet tops between each customer. Seeing as these supplies are sometimes not available at this time, consider putting up a notice stating that in order to keep customers safe during these times, only Store Employees will be handling product packaging.
Safe Distancing
For retail stores, you may want to even consider installing plastic/glass barriers (think similar to what we had back in the medical days or you see at banks) in order to keep employees/customers safe. For Producer/Processer cannabis companies, you should try to keep employees at the 6-foot minimum distance. If you’re not already operating in multiple shifts, you may want to consider doing this as well so you can continue regular production but space out workers so they feel safer in this environment.
Hand Washing
Add additional hand sanitizer stations and consider hiring additional staff and/or appointing one of your current staff members to wipe down all surfaces every 30 minutes.
Thermometers
Consider purchasing thermometers for each employee so they can check their temperature multiple times/day.
Curbside Pickup or Appointment-Based Purchasing
Consider adding to your website a mechanism for customers to pre-order online with curbside pickup, or to schedule an appointment to visit your store. This can help to keep the number of customers in your store at any given time relatively low, while maintaining consistent business throughout the day.
Encourage Delivery
While not all states have delivery available, those that do should try to encourage its use. This will help limit contact between your workers and customers.
We are sure our fellow members will have plenty of other valuable suggestions, so we encourage you to share your best ideas in the comments section of this blog post, on NCIA’s Facebook page, so we can all work together to keep our cannabis community safe during these times.
Member Blog: Protecting Your Cannabis Dispensary During The Coronavirus Outbreak
Amidst the coronavirus outbreak, cannabis dispensaries across the U.S. are posting record sales numbers. Many people are stocking up on what they consider to be the essentials. While we are always excited when our clients see increased sales, we need to emphasize the following:
Do not trade a short-term jump in revenue for the long-term damage you can do to your customers, employees, and community by continuing to operate your business as usual. It is NOT business as usual for most Americans right now, and precautions need to be taken by dispensaries that are continuing to operate.
Be ahead of the curve. Be proactive with the measures we outline below rather than just responding to coronavirus restrictions when you are required to. It shows that you put your customers and staff’s health ahead of profit… Which you should be doing anyway. Being the first in your market to voluntarily adopt these precautions is newsworthy, and you may be rewarded with some media coverage if you spin it right.
Cannabis is a medical necessity for many of your customers, whether they do their actual shopping on the rec or medical side. And your employees are depending on their jobs to continue to support their families during this very difficult time. That’s why we encourage dispensaries to continue to serve their customers and staff but to do everything in their power to reduce the risk of spreading COVID-19. And while there is no way to eliminate the risk entirely while continuing to operate, there are many things you can do to reduce the risk of spreading the virus amongst your staff and customers.
Encourage online ordering
If your dispensary is in a market that offers online ordering, offer incentives to encourage customers to do this. Make sure you send e-blasts and text messages advertising the incentive, and include a pop up on your website promoting it.
Offer curbside pickup or delivery
If you’re in a state that allows it, like Michigan, offer curbside pickup. Many places already offer delivery. Either of these are far better options than allowing people into your store, and should be encouraged with an incentive. If you need to beef up your delivery staff, remember that there are many, many folks in the service industry that are now desperately looking for work as restaurants and bars are closed down. If you’re in a market that allows curbside pickup, delivery, and/or order ahead, then considering shutting down in-store purchases completely.
Limit the number of people in your waiting room and/or store
Social distancing is the mandate across the entire country, so reducing the number of people physically in your dispensary at any one time is critical. Consider a “call-back” service, similar to how many restaurants operate their seating. Customers give you their name and phone number and are added to a list. They can then go wait in their car until you call them to come into the store to make their purchase. It slows down the customer flow but will drastically reduce the number of people in close proximity.
Require hand-sanitizing before entering the store
This one is simple! In most states, dispensaries have the right to refuse service to anyone for any reason. Have an employee stationed at the door and require customers to apply hand-sanitizer before entering the premises. Refuse service to anyone that won’t use the hand-sanitizer.
Rotate staff on “round-the-clock” cleaning
Every business that remains open should be conducting a deep cleaning multiple times per day. Critical to that is sterilizing the “problem spots” that are most commonly touched by customers and staff inside your store. Light switches, door handles, credit card terminals, ATM buttons, and computer keyboards. If you have a location and staff large enough to support it, then consider round-the-clock cleaning of the interior.
Shut down your store
Drastic times call for drastic measures.Pro-actively closing down your cannabis dispensary even before it’s required by law may be the best option for some business owners. In certain markets, it may be the only responsible choice. Consider the fallout and permanent damage to your business if a customer or employee is infected, gets seriously ill, or dies because of an interaction they had in your store.
It’s important to keep in mind that this jump in sales and/or complete closure are only temporary. Regardless of what you do with your dispensary, consider the long-term implications of your business choices.
When things do return to normal, how will your stakeholders view your actions or inactions?
If you must close your dispensary, keep your community close and engaged. Consider offering formal and informal virtual events, merch giveaways, contests, or educational webinars. There are lots of streaming and collaboration tools available, including many that are free or nearly free.
Johnathan McFarlane is the Director of Strategy at Hybrid Marketing Co. Hybrid Marketing Co is a Denver-based branding and marketing agency that specializes in building custom strategies that supercharge growth and drive revenue. Working with brands and businesses across the U.S. and Canada, Hybrid’s partners run the full-spectrum of the cannabis world including dispensaries, manufacturers, cultivators, and ancillary businesses. Visithybridmarketingco.comto learn more about theHybridapproach.
We have plans in place with several of our clients to maintain their brand visibility if a total shutdown is necessary. We are offering completely free continuity-planning sessions for any cannabis business that is worried about their future.
Member Blog: Attracting Investors Requires Compliance And Scalability
by Frank Nisenbaum, Vice President of ERP Sales, c2b teknologies
More new cannabis entrepreneurs are trying to carve out space in the industry, and as the market continues to expand, so are cannabis investors.
This comes as no surprise. Cannabis investors have more predictable ways to invest in cannabis companies since marijuana can now be found in everything from beverages to beauty creams.
But the needed operating capital coming from these investors isn’t being thrown at new upstarts riding on nothing more than the dream of success in the legal marijuana marketplace. Cannabis investors want to see the people and businesses into which they put capital have a strong commitment to their industry and a dedication to their processes. Of course, this entails strict adherence to local, state and federal regulations for compliance initiatives, but investors also want to see a solid foundation for expansion and scalability in place.
Scalability
Consider your projected growth over the next few years, what are you doing to meet it? Investors want to see more than forward-thinking ideas, they want to see the initiatives you’ve put in motion to meet your projections. Are you upgrading suppliers, creating new products, or even better, adding new locations?
Investors need to believe that organizational leadership has a sound plan for scalability in place. More importantly, as you expand into new markets and grow your product offerings, you have invested in the framework and infrastructure in order to grow their operation in line with your business plan.
Regulation and Compliance
Among the more burdensome compliance issues for cannabis operators is the need to track the entire lifecycle of cannabis products from seed to sale. You need to be able to account for every step in the lifecycle of your cannabis plants and be able to provide this information to regulatory agencies at a moment’s notice.
Adding to the complexity of tracking the plant, you’ll need tracking for each employee who works with the plant. These seemingly minor details can derail the best intentions, so demonstrating success surrounding mandated quality assurance testing at key points in the plants’ development will get the attention of would-be investors.
Multiple Jurisdictions for Added Complexity
Compliance is even harder to achieve due to the multiple bodies which have jurisdiction. Local, state, and federal agencies all jockey for partial control of regulatory measures placed upon your cannabusiness.
Some of the federal agencies involved in the regulation of legal cannabis plants include, but are not limited to:
United States Department of Justice
Environmental Protection Agency
Internal Revenue Service
Each state in the U.S. has its own regulatory body for cannabis operations. Examples include:
Department of Public Health
Department of Food and Agriculture
Department of Fish and Wildlife
Department of Pesticide Regulation
Alaska Marijuana Control Board
California Bureau of Cannabis Control
Colorado Department of Revenue Enforcement Division Marijuana Enforcement
Illinois Department of Financial and Professional Regulation, Cannabis Regulation
Maryland Medical Cannabis Commission
Massachusetts Cannabis Control Commission
Michigan Department of Licensing and Regulatory Affairs Bureau of Marijuana Regulation
Nevada Department of Taxation
Oregon Liquor Control Commission
Washington State Liquor and Cannabis Board
The full list of regulatory bodies is much longer. Compliance concerns are not exclusive to this industry, but as a cannabis operator, you face a tremendous number of regulatory bodies and each of these agencies has specific requirements to adhere to in order to stay compliant and stay in business.
As cannabis legalization becomes more widespread, each jurisdiction develops its own guidelines surrounding cannabis, from seed to sale. Unfortunately, this often creates confusion and leaves cannabis compliance open to interpretations. Without the systems in place to track and document multiple aspects of the cannabis industry, you’re at risk for considerable fines for non-compliance.
How to Present Your Cannabusiness
If you’re seeking capital from cannabis investors, understand that building a cannabusiness for compliance and scalability is nearly impossible without purpose-built technology. To that end, cannabis operations software is an invaluable platform for your cannabusiness when looking to attract investors.
Beyond your core business functions, investors consider the systems in place which support your cannabusiness. By planning ahead and incorporating a cannabis operations solution before you seek outside funding, you’re able to enjoy the fruits of efficiency, but you’re also able to prove it.
Cannabis operations software features tools for inventory tracking, asset management, and personnel scheduling and management, which means that the regulatory guidelines with which a cannabusiness must remain compliant are areas intrinsically handled by the platform. These systems excel at tracking inventory and allocating resources while maintaining clear audit trails, which is extremely important if a regulatory agency knocks on your door.
Cannabis operations software gives you and potential investors a unified view of your entire operation by bringing all operational data under the same umbrella, standardizing the data reporting and making it available for easy cross-referencing. By collecting all data into a single pipeline, a best-in-class solution gives everyone in the process the tools and insights necessary to make the right decision.
Vice President of ERP Sales, Frank Nisemboum,is a trusted advisor at c2b teknologies who has guided organizations of all sizes enabling them to establish a technology presence and expand their business through technology. His proven ability to analyze the current and future plans of a company and work with team members to subsequently bring technology solutions to the organization result in improved processes and controls that assure continued growth and profitability.
Frank has worked in the ERP and CRM software selection, sales and consulting industry for almost 25 years. His strong ability to understand, interpret and match the needs of an organization to the right solution make him an asset to all of his clients.
c2b teknologies integration and engineering experts have partnered with leading cannabis industry experts to develop a software solution that provides a complete cannabis operations system. The best-in-class solution not only handles tracking of seed-to-sale activities but encompasses your entire cannabis operations with compliance needs handles along the way. Our passion for solving problems drives us to deliver innovative solutions for everyone we work with. Visit c2btek.com for more information.
Committee Blog: California Social Consumption Leads the Way
It was January 28, 2020: It’s a full house at the Berkeley City Council meeting, with comprehensive changes to the city’s marijuana regulations on tonight’s agenda. The biggest issue, with supporters of both sides attending, is the vote to consider legalizing cannabis consumption at specially designated licensed dispensaries.
The proposal to allow smoking, vaporizing, and consumption of edible goods is supported on one side by a phalanx of marijuana advocates and dispensary operators, and on the other side, it’s the city Health Department and Berkeley’s famously NIMBY neighbors. This conflict runs deep; cannabis users want dignified, legal facilities where they can gather and use marijuana, and several dispensary neighbors and the health department want this idea squashed, full stop.
Fact is, people have long gathered together to share cannabis, as shown by an extensive recorded history of use. This spans from ancient Sumerians, who built huts and vaporized cannabis on burning coals inside, to underground marijuana smoke-ins in the 70s and 80s, to now, where cities are licensing legal cannabis consumption facilities for adults.
California is helping lead the United States consumption lounge movement. For example, California’s Bureau of Cannabis Control (BCC) regulations (Section 5025) explicitly contemplate the possibility of consumption lounges, stating that “this section shall not be interpreted to prohibit cannabis consumption on the premises of a licensed retailer or licensed microbusiness authorized to engage in retail sales,” as long as they are locally licensed and approved.
The state law also created Temporary Cannabis Event Licenses, where onsite consumption is allowed at festivals like the High Times Cannabis Cup and the Emerald Cup. Yes, with city or county and state permission, it is possible to throw your cannabis dream event, but there are a limited number of locations in only a handful of places that allow these uses (including my hometown, Oakland). This makes it hard to get these licenses, and the costly and complicated regulations are hard to meet once you have one. Anyone hosting a Temporary Cannabis Event can expect to interact closely with the BCC regulators, who will surely attend to ensure compliance.
Cannabis consumption facilities are nothing new in California. They have long existed, ever since Dennis Peron opened his first dispensary in San Francisco in the early-1990s. His famous location on Market Street was five stories high, literally, as each floor contained tables, couches, and chairs where patrons could hang out and consume cannabis. When the Compassionate Use Act of 1996 passed, collective dispensaries started opening across the state, despite federal illegality and the occasional raid because of it (Dennis was raided by the feds and forced to close in 1998).
I opened my first cannabis consumption lounge at Berkeley Patients Group in 1999, which was long before it was legal to do so. This was under the cover of tolerance provided by Proposition 215; after all, not even dispensaries were actually made legal by this groundbreaking initiative. That didn’t happen until the state legislature passed the aptly named SB 420 in [year], after which most cities grandfathered in their existing cannabis dispensaries. (Not all, though. Some municipalities used this transition as an excuse to ban dispensaries, or to close existing ones, during long periods of regulatory contemplation.) Berkeley allowed onsite consumption until the early 2010s, when the local regulatory processes changed. Hence, the City Council vote tonight to decide the fate of onsite consumption here once again.
Now, I own Magnolia Wellness dispensary in Oakland, where local regulations have allowed cannabis consumption at specifically licensed dispensaries since 2017. Magnolia’s Dab Bar and Vapor Lounge was the first legal consumption lounge in the East Bay. We have café style tables, a gorgeous full, copper top bar, glass dab rigs with e-nails, Vapexhale and Volcano vaporizers, and a variety of tasting events where people can try samples. Unfortunately, Oakland’s dispensary law only allows vaping, edibles, and topicals, limiting smoking to additionally permitted outdoor patios, none of which currently exist. (Full disclosure: I also co-own Hi Fidelity dispensary in Berkeley, too.)
San Francisco, on the other hand, has more than a dozen shops where cannabis smoking, vaping, and edibles consumption are all allowed. SPARC, one of the first lounges in the city, has tasteful tables and chairs right in the main dispensary, where volcano vaporizers can be used onsite. Vapor Room, a few blocks away, is a smaller neighborhood joint, with a handful of seats for people to sit and enjoy smoking or vaping. According to owner Martin Olive, it was a costly HVAC system, at a near six-figure expense, that allowed his facility to host its cannabis smoking patrons. Moe Greens, the latest licensed lounge to open in the city, took four long years to get licensed, but is now a beautiful facility, with cushy booths for smoking and a counter service dab bar with top-of-the-line e-nails and dab rigs for patrons to use.
West Hollywood is the biggest news on the California consumption lounge scene, as the city recently licensed 16 facilities for on-site consumption. Half of these facilities will allow retail sales and consumption, while the others are allowed to sell only single-use items, designed to be consumed café style, while patrons are on-site. This plan has been controversial, though, because in issuing these licenses, the city took permits away from several of the long-existing dispensaries, re-issuing them to new operators. The ensuing lawsuits and legal battles will surely play out through 2020.
There is another big problem in West Hollywood: the state law does not match up with their rather forward-looking ideas for cannabis cafes. For example, cannabis cannot be blended into café food and served on the spot, as the city imagined when creating this law; Cannabis can only be sold pre-packaged and tested, per BCC regulations. Furthermore, state-licensed cannabis businesses are not allowed to sell anything but cannabis products (and a shortlist of branded items like mugs, lighters, and pipes). In other words, they can’t sell non-infused foods or beverages like coffee, soda, or tea (or, since we are talking West Hollywood, kombucha and smoothies).
Until state law changes, the plan is stuck in limbo, with facilities looking for creative workarounds to allow food and beverage service.
So, despite the West Hollywood ordinance passing in late 2018, only one facility has opened there, and even this has hit roadblocks. In fact, they recently re-branded after only a short time in business, from Lowell’s Café to the Cannabis Café, after a regulatory crackdown hit the Lowell’s brand hard. It remains to be seen when the other 15 cannabis lounges will open there.
Back in Berkeley, staff from the Health, Planning, Police and Economic development offices joined forces with the Berkeley Cannabis Commission to present the City Council with a comprehensive plan to update the city’s cannabis ordinance. Diverging opinions meant that the agenda contained competing proposals on several of the ten proposed ordinance changes, with the Cannabis Commission leading efforts to create progressive changes, and the Health Commission stuck on the old trope, “we need more research.”
Elizabeth Greene, City of Berkeley Senior Planner, explained to Council that these proposals have been in development since 2017, with the goal of expanding the rules to protect the entire cannabis supply chain, from seed to sale. This includes development of two new license types, cannabis consumption lounges and non-retail dispensary licenses.
“State law allows for consumption lounges as part of a retail license, as these are the only facilities open to the public,” Greene says. “Currently, consumption lounges are not permitted in the City of Berkeley.” Her presentation made it clear that city staff recommended cannabis lounges be permitted, despite the worries of the Health Commission, whose representative commented that “legalization is new,” despite that cannabis sales have been regulated by the city for around 20 years.
Long time senior advocate, and ICANN dispensary owner, Sue Taylor spoke eloquently in support of the proposal to allow lounges. “Seniors need a place to learn about cannabis, how to use it and dosing, and you could do that in a vape lounge. I can’t go into their homes, but I can provide this education at a lounge,” says Taylor. “It’s not like a bar; at a bar, you just get sicker. A vape lounge helps people.”
Ultimately, the City Council agreed. By 11:30 PM, Mayor Jesse Arreguín called the vote, with the Council unanimously approving the entire proposal. Supporters filled the room with cheers, and long-time advocates like myself reflected on the fact that, yes, hard work and determination do pay off. Together, we may just end prohibition, once and for all — and have some fun, too.
The Illicit Cannabis Market Puts Consumers At-Risk and Is an Existential Threat to the State-Legal Cannabis Industry
by Andrew Kline, NCIA Director of Public Policy
Photo By CannabisCamera.com
The illicit market is not working for anyone. The illicit market puts consumers at risk by offering untested, unregulated, and dangerous products, including “vape cartridges” filled with additives that are not intended for inhalation. These illicit vape products alone have caused 2,768 injuries and 64 deaths to date nationally. Pop-up dispensaries are selling illicit, unregulated, and untested products to unwitting consumers. Unscrupulous people are unlawfully selling cannabis products over the internet in violation of state and federal law, and online platforms are enabling the illicit market by advertising for illegal online and brick and mortar stores. Counterfeit and ready-to-fill packaging is being sold with fake lab results, batch numbers, and barcodes. Illegal growers are causing serious environmental harms. Even illicit market operators with the best intentions still put consumers at risk when they sell untested products produced in unregulated facilities.
And these illicit operators pose an existential threat to the regulated markets that voters have demanded. Operators are laying out significant funds for licenses and compliance to compete against an illegal, untested, unregulated, untaxed marketplace. Law enforcement is playing whack-a-mole. Consumers are often unaware of which operators are legal, particularly where illegal operators often have a veneer of legitimacy or have stolen the intellectual property of these regulated businesses to gain consumer trust. We need to make certain that reliable and safer products (tracked, tagged, and tested) are being sold in the regulated market. Trust in the safety of the supply chain is key here, with laboratory testing, traceability, and safeguards (eg: ability for recalls) as mandatory prerequisites.
On February 19, 2020, NCIA, along with NCIA’s Policy Council, former Boston Police Commissioner Ed Davis, and Commissioner Britte McBride, public safety appointee on the Massachusetts Cannabis Control Commission, partnered to facilitate an important discussion with law enforcement, advocates, and industry stakeholders seeking solutions to the illicit cannabis market. The summit brought together federal, state and local law enforcement; state regulators, cannabis entrepreneurs and multi-state operators, ancillary technology companies, and social equity experts. The purpose of the summit was to dialogue about the illicit cannabis market with the goal of developing recommendations on resources, policies, best practices, and public-private partnerships to share information.
Here are some key takeaways:
First, the cannabis industry needs to help law enforcement find alternatives to arrest and incarceration. Some states have been creative in their approach to combating the illicit market, by locking doors and shutting off electricity and water, levying fines, and prosecuting tax evasion. It is essential that we rely most heavily on alternatives to arrest and prosecution so that we don’t perpetuate the myriad problems associated with the “war on drugs.”
Second, the industry must better define the illicit market. The illicit market looks very different in Idaho than it does in Colorado. In Idaho, all sales are illegal and diversion from legal states into Idaho is a serious problem. In Colorado, state regulators are concerned about unsafe products being manufactured and sold outside of the state regulatory regime. So, we need to take a hard look at the products that are causing the most significant problems (injuries and deaths) and focus our attention on the most serious of those cases. Until we prioritize what we deem to be illicit market activity, it will be difficult to prioritize limited law enforcement resources.
Third, the industry needs to definitively determine the root cause of the illicit market. We know that three probable causes of illicit market activity are: (1) lack of legal access to cannabis and cannabis products and (2) price disparity between legal and illicit markets, largely due to high taxes of legal products, and (3) a lack of economic opportunities in marginalized communities causing people to turn to illicit sales. But, what are other causes and effects?
Fourth, the industry needs a forum for collaboration with law enforcement. The middle of a crisis is not the time to develop relationships.
Fifth, the industry needs a pathway for illicit market operators to enter the legal market. We can’t displace the illicit market unless we create a pathway for previous illicit market entrepreneurs to enter the legal market. That means that states must create realistic pathways to enter the regulated market for legacy illicit market actors. There are an increasing number of potential models here, from the states such as Massachusetts (which has led on attempting to prioritize social equity during license application processes) and Illinois (which made such pathways a key point in the legislation to create a legal market) to industry groups such as the Minority Cannabis Business Association (which has published recommendations for state regulators intent on incorporating social equity requirements into their licensee applications).
Sixth, law enforcement has competing demands and needs help prioritizing cases. What are the most egregious cases that warrant criminal arrest and prosecution? What are the cases that warrant automatic expungement? And what do we do with the cases that fall in between?
Finally, the industry needs to speak with one voice and start rowing in the same direction. The industry needs national messaging from states that have a regulated market to help dispel myths and prepare warnings for responsible use. We need to share information on packaging and labeling, testing, universal symbols, etc., nationally. And most significantly, the industry needs to start speaking with one voice and work to bring legacy businesses into the regulated market. NCIA’s Policy Council is committed to continuing efforts to create a safe place for everyone in the industry to begin that dialogue.
Andrew Kline is the Director of Public Policy for the National Cannabis Industry Association and leads NCIA’s Policy Council. He can be reached at Andrew@TheCannabisIndustry.org
Watch The Webinar: An Insight into Cannabis Attitudes, Uses, and Trends
This informative webinar recording from January 28, 2020, provides insightinto recent market research on state-by-state consumer attitudes, usage, and trends. Cannabis consumer segments and profiles will also be presented along with media consumption and lifestyle attributes, along with preference insights from medical dispensaries and the role of cannabis in the treatment of severe pain and key findings and takeaways from their latest consumer research. Featured speakers include Stephen J. Gongaware and Jennifer Wolfe of Management Science Associates (MSA).
Committee Blog: Why We Should Know About Our Endocannabinoid System
So why should we know more about our endocannabinoid system?
The short answer is: that we should all be in awe of it! Here’s why; although not widely known, the Endocannabinoid System (ECS) is extraordinarily important because it maintains balance for most functionally relevant activities in your body! Why does the general public and our health care providers know little about the ECS? Why is it that when you Google “systems of the body,” the ECS rarely comes up? Why did I, someone who’s been educating adults on functionally relevant activities in the body for 35 years, not know about this system for most of those years?
The ECS is a set of millions, perhaps even trillions of these molecules that are found in cells widely spread everywhere in the body. Though there are many molecules that are considered part of the ECS, currently it is described as having two receptor molecules, CB1 and CB2 (aka CB1R and CB2R); two endocannabinoid molecules, AEA and 2-AG; and, two enzymes, FAAH and MAGL, that break down AEA and 2-AG respectively. There are several other enzymes that make or break down the endocannabinoids, but there is not a clear consensus of which belong to the ECS. The ECS as a whole plays a vital functional role in an extensive variety of cell types, maintaining balance in the body in the face of constant environmental changes, both external and internal.
The majority of ECS components reside in the Central Nervous System (CNS), Peripheral Nervous System (PNS), and the immune system, which is not surprising given the critical roles the ECS plays in these systems. But it is far more widespread than that, a PubMed search found papers discussing ECS components in all types of cells widely distributed all over the body including keratinocytes (skin cells), smooth muscle cells of the uterine wall, chondrocytes (cells that make cartilage), fibroblasts (cells that make ligaments and some other type of connective tissues), hepatocytes (cells of the liver), endothelial cells (line blood vessels), cells of the kidney, epithelial cells of the seminal vesicles (small glands that produce semen), osteoblasts (cells that make bone), osteoclasts (cells that break down bone), skeletal muscle cells, cells of the endocrine glands, cells of the corpus cavernosum (erectile tissue of the penis), and myocardial cells (the muscle cells of the heart). Collectively, the molecules of the ECS regulate or modulate most of the physiological and biochemical processes that occur in our bodies. In spite of this, the ECS is not even mentioned in the latest edition of the number one physiology textbook used in medical schools across our country!
I recently accompanied a good friend to her gastroenterologist appointment because she was having serious digestive issues. I joined her because of my extensive background in cell biology, human health, and the ECS and knowing that many experts suggest the ECS plays an important role in the cause of irritable bowel syndrome, Crohn’s Disease, colitis, and other novel therapeutic targets. The doctor is a professor at a highly respected, well-known medical school in D.C. with several years of practical experience. After he gave his diagnosis, I asked “do you think there could be an endocannabinoid deficiency disorder involved?” He looked confused and quickly changed the subject. When it comes to the ECS, this kind of evasiveness is the status quo in the ‘place’ known as modern medicine.
Sadly, I estimate at least 80-90% of the time, patients hear the same thing from their doctors, whether it is an endocrinologist managing a patient with diabetes, psychiatrists monitoring depression and anxiety, or a pediatrician who manages the care of young children with autism. All of these conditions could qualify you for a medical cannabis card in one state or another, yet medical practitioners in those same states are misinformed, at best, regarding the role of the ECS in human health and wellbeing.
There are millions of people suffering from debilitating diseases that could possibly benefit from the use of cannabis and many of them do not have access to this medicine. These diseases, which constitute 7 of the top 10 causes of death according to a 2016 CDC study, include heart disease (99), cancer (350), chronic respiratory disease (32), stroke (91), Alzheimer’s (63), Diabetes (240), and suicide (24). The number in parentheses represents the number of scholarly papers you’ll find on a PubMed search of the ECS and the name of each of the conditions. Pubmed is a search engine for peer-reviewed scientific articles provided by the National Institutes of Health. This is a collective 899 referenced papers. Many include astounding research that describes what’s happening at the molecular level. With all this recent research, it is becoming obvious that the ECS has an enormous role in human health.
Oftentimes these conditions exist because of problems with the ECS and many believe the phytocannabinoids in cannabis can help. Imagine how different the quality of life for these millions of suffering people would be if cannabis was returned to the revered place it held for the vast majority of medical history. Think of the potential impact of simply asking your health care provider if they’ve heard of the ECS. It may prompt more doctors to do a PubMed search and start reading the more than 5,064 papers that appear! They might have the same reaction that I and many others have had. “How is it possible I did not know about this global system that seems to have some kind of a role in the regulation of just about every kind of relevant physiological process you can think of?” Hopefully having these conversations with our doctors will increase the number of doctors practicing cannabis medicine. According to an online article,the average number of patients for a family practice physician in 2018 was between 1,800-2,000. This one simple question has the potential to change the lives of thousands of people!
Fortunately, there are now 33 states where medical cannabis is legal and 13 additional states where patients can access CBD or low THC cannabis. However, here in the United States, it remains federally illegal, which creates a host of ethical dilemmas that are far too extensive to address in this discussion. Looking at all legal cannabis states, the number of conditions that qualify a person for a medical cannabis card is up to 95 and several states include “any condition the qualifying doctor deems will be improved with the use of cannabis” on their list. How in the world is one plant capable of helping with so many varied conditions and diseases? The answer is, of course, the ECS which performs the incredibly important job of maintaining homeostasis, balance of physiological activities within the body. In other words, it is a state where the body responds to a changing environment by making sure your internal environment remains within specific limits to sustain health. When homeostasis fails, disease results. And so is the case when the ECS fails. In fact, there are numerous conditions where decreases in circulating endocannabinoids have been documented, called Clinical Endocannabinoid Deficiency Syndrome (CEDS). Experimental evidence suggests this is the case for migraines, post-traumatic stress disorder (PTSD), fibromyalgia, irritable bowel syndrome and more.
We are in the infancy of understanding the incalculable intricacy of the entourage effects of more than 400 phytonutrients in cannabis interacting with the multitudinous potential responses from the immeasurable number of components in our ECS! We know that THC and other cannabinoids found in cannabis bind to the CB1 and CB2 receptors on our cells. Although CBD is a cannabinoid too, it does not actually bind to either of these receptors, but rather acts to change the binding activity of other cannabinoids.
Not a single double-blind placebo-controlled study was mentioned in this article, so my words may fall on some deaf ears, though I’m certain there will be more people interested in learning about this amazing avenue to health. Empirical evidence has been used for about 98% of the 5,000 or so years of recorded medicine practice. Interestingly, cannabis has been successfully used as a healing and spiritual agent for the same percentage of time! It seems like a no brainer, especially given the varied side effects and sometimes failure of pharmaceutical medicines used during the remaining 2% of recorded history where medicine has been practiced. In 2017, 70,273 deaths were caused by pharmaceutical medicines. In contrast, cannabis has caused zero deaths in the 5,000 years of recorded medicine!
The bottom line is that the ECS is fundamental to remaining healthy. Each of us has an ECS; made up of receptors, endocannabinoids, and enzymes widespread in all types of cells scattered throughout our bodies. Remember, this system maintains balance in our body, literally keeping an eye on all the important functions that occur. When something goes wrong, ECS components immediately fix it. But, when the ECS is unable to maintain balance, the result is often disease, a vital fact you should keep at the forefront of your mind and share whenever visiting your health care professional!
In her first year of undergrad, Ann developed a great interest in embryology while taking Anatomy & Physiology. After graduating, she enrolled in a Ph.D. program in cell biology and studied mammalian eggs and embryos. For several years after completing the program, she continued this research at Tufts University Health Sciences Center while working as a Gross Anatomy instructor. Next, Ann worked as an assistant professor at Howard University College of Medicine, continued teaching Gross Anatomy and began studying breast and ovarian cancer cells.
After 19 years in medical academia, Ann did a 180 and moved on to the natural product industry, where she learned there were many alternatives to pharmaceuticals to achieving health. And among other topics, taught the immense value phytonutrient rich foods and herbs have to optimal health and well-being for almost 15 years. Upon learning of the existence of the endocannabinoid system (ECS) in March 2019 she was shocked she had never heard of it, but she is far from alone. The general public is for the most part clueless about the ECS and the medical establishment, by and large, ignores its existence. So, she decided to create a company, Cannabis Education Solutions, dedicated to illuminating minds to the expansive nature of the ECS and its unparalleled importance to human health.
Meet Anya – NCIA’s New D.C. Office Intern
By Michelle Rutter Friberg, NCIA Deputy Director of Government Relations
There’s no shortage of work to be done in cannabis policy reform here in Washington, D.C. and it seems like there’s never enough hours in the day! That’s why for more than two years, the NCIA D.C. office has utilized the help of interns to assist us with all of the important work we do here. From attending meetings and briefings, to doing research projects, to doing social media, our wonderful interns have done it all. This week, we want to introduce you to our newest intern in D.C., Anya Vining.
Tell us about yourself! Where did you grow up and go to school?
I was born in Ukraine but spent most of my childhood in upstate New York. I then moved to Boston where I went to school at the University of Massachusetts and studied political science and psychology.
What did you do before this internship?
After graduation, I began working at one of the first licensed hemp farms in Massachusetts, BayGrown Farms. It was a great opportunity to learn more about cultivation and product development. After the harvest season, I spent some time traveling around the United States exploring new places!
When did you realize you were interested in cannabis, whether personally or professionally?
Once I began working for BayGrown Farms I got to see the importance of legalized cannabis. I met so many people who relied on cannabis to improve the quality of their lives and saw first hand the positive effects! We also worked to repurpose old and unused farmland which provided farmers with another source of income. The positive impact on the community really inspired me to pursue cannabis professionally!
Do you see yourself entering the cannabis industry in the future?
I would love to continue to work in the cannabis industry. I have been considering law school and specializing in cannabis law but I am always open to new opportunities. I think this will be an eye-opening experience and hopefully will give me more insight into what I want to do in the future!
What interests you about the cannabis space?
The cannabis industry is ever-changing and growing rapidly which keeps the space interesting and exciting! So many people are impacted by the industry and there is always room for more education and advocacy.
What are you most excited to do or learn while interning here?
I am most excited to gain more professional experience and learn more about lobbying for a cause that I am passionate about. I am also looking forward to meeting more people in the industry and hope to become more involved and invested!
If you’re interested in learning more about the work we do in Washington, D.C., or meeting Anya and our government relations team, make sure you save the date for NCIA’s 10th Annual Cannabis Industry Lobby Days, happening May 19-21, 2020! See you there!
Video: Episode #2 of NCIA Today – #NECannaBizCon recap, Safe Vaping, Illicit Market Summit, and more!
Tune in to episode #2 of our new monthly video series: NCIA Today!
Off the top, Bethany looks back at #NECannaBizCon in Boston, MA this past month, our first trade show of 2020.
In our policy update, Bethany discusses “The Key to Consumer Safety: Displacing the Illicit Cannabis Market – Recommendations for Safe Vaping,” a recent report produced by our Policy Council and informed by a variety of subject experts, with NCIA Director of Public Policy Andrew Kline.
Oour annual in-person member policy and government relations update event series, the Cannabis Caucuses, are only days away in March. See where your caucus is happening!
We’ll see you next month for NCIA Today!
Member Blog: The Days Of Breaking Bad Are Over… Sort Of
With the expanding decriminalization of marijuana and hemp and increasing market demand for cannabis concentrates, more people are assuming the role of pseudo-chemists or lab technicians without formal training. People no longer need to ‘break bad’ by extracting and processing cannabis in their garages, kitchens, or old RVs. Commercial laboratory spaces are becoming more common. Unfortunately, without formal laboratory training, appropriate laboratory safety habits are often not established. The ‘whatever-it-takes’ mentality plus some questionable lab techniques add up to be quite dangerous in a pursuit for the ‘good stuff.’
Solvents used for extraction, though often odorous, are clear and colorless and therefore invisible in vapor form. They are often handled in the lab like water. For those manufacturing cannabis concentrates for retail, the focus has been on possible regulations set by the FDA, but these new, small businesses are also under the jurisdiction of OSHA. While studying industrial hygiene standards written by OSHA, most safety practices seem like common sense, but only after the chemical hazards are recognized.
For more in-depth safety standards and fire codes for non-glassware or non-laboratory-scale (read: industrial-scale) extraction and processing equipment, ANSI/CAN/ UL/ULC 1389 or NFPA 1 Chapter 38 are great starting points.
Most of What We Breathe Is Invisible
As mentioned above, the solvents used to extract and process cannabis are either gases compressed into their liquid form or clear, colorless organic liquids. [Note: here ‘Organic’ means a substance that contains carbon, not the label you find at your grocery store]. These solvents include ethanol, propane, butane, pentane, hexane, isopropyl alcohol, methanol, acetonitrile, and other less common ones.
The danger of these solvents is that even when they are cold they vaporize easily enough for inhalation, some without harsh odors as a warning. Opening containers, glassware, or vessels without proper ventilation or PPE (personal protective equipment) exposes laboratory workers over a short time and many times a day. This exposure can occur during simple acts of pouring, transferring, heating, drying, mixing, or weighing on a balance. While many of the solvents used have a GRAS designation (generally regarded as safe) by the FDA, this label is used for food additives with the intention of ingestion, not inhalation. There are a few research studies on the toxicological effects of breathing in these VOCs (volatile organic compounds) in a short period of time. However, chronic studies of consistent exposure for years are rare. NIOSH, or the National Institute for Occupational Safety and Health, provides a decent summary of worker exposure studies for common industrial chemicals. Some of which can cause respiratory effects that evolve into allergies or even neurological damage. Unfortunately, most of the toxicological literature available can be decades old.
Yet laboratory technicians are not the only ones exposing themselves to a potential hazard. Working onlarge-scale extraction equipment, workers come into contact with large plums of high concentrated VOC when opening extraction tanks and vessels. This process happens many times a day when workers reach in to load and unload bags of cannabis biomass. Exposure also occurs through skin contact, as many of these solvents absorb into uncovered skin.
Gases under pressure are yet another non-chemical hazard. Compressed gas tank cylinders need to be transported and stored safely to keep them from falling over and crushing limbs. If a cylinder valve breaks off, they turn into a projectile missile, or they become damaged enough to rupture and release thousands of liters of suffocating gas within minutes or seconds.
Carbon dioxide solid in the form of ‘dry ice’ is often used in large amounts for cold traps in cannabis oil processing. Dry ice easily sublimes, where the solid form converts directly into a gas. Gaseous carbon dioxide is much heavier than general air and can easily displace oxygen in closed-off storage areas. Oxygen sensors, proper ventilation, and limited exposure help to avoid hazardous side-effects of oxygen deprivation.
The Tools to Keep Everyone Safe Are Out There
Any workplace that handles or stores chemicals should have the corresponding Safety Data Sheets (SDS) of the chemical. These are usually obtained from the manufacturer of the chemical, but there are also free databases online for easy access. All SDS’s should be available for easy access to workers who handle or are in an environment that uses chemicals.
OSHA also provides its own chemical database system that lists the physical properties of chemicals as well as their permissible exposure limits (PELs) and short-term exposure limits (STELs). These limits are used for compliance purposes, but in short, they provide a rough guide for how dangerous it is to breathe in some of these chemicals. Note that OSHA’s exposure limit guidelines may be outdated as many have been written 50 years ago when OSHA had been founded! For the latest guidelines visit NIOSH and ACGIH. These organizations/agencies keep up with current toxicological research and provide more up-to-date exposure limits that are sometimes significantly lower. Air sampling of your workers can always be done through an AIHA-accredited laboratory that will send out certified industrial hygienist to sample during a work shift.
Any industrial hygienist will tell you that the use of PPE is the last line of defense against chemical hazards and exposure. Engineering controls like proper room ventilation and local ventilation, including fume hoods, exhaust hoods, and elephant hoses, are some of the best ways to avoid exposure through inhalation. Fume hoods are almost always found in laboratory spaces; however, it’s easy to form bad habits when using them. For example, storing large objects and numerous chemical bottles inside the hood significantly blocks the proper airflow that needs to occur to make sure any vapor is properly ventilated. The sash (or glass door) should always be kept as low as possible and especially below the chin of the person working at the hood. Newer models of fume hoods have airflow monitoring devices and alarms systems to make sure the face velocity of the hood is between 80 and 120 fpm (feet/min).
Finally, PPE that fits comfortably, doesn’t interfere with the flow of work, and is rated properly for the hazards of the chemicals used, is a definite requirement when working with chemicals even when other controls are in place.
When effective local ventilation is not available for situations where a large plume of solvent vapor is expected (e.g., opening an extraction vessel to remove biomass bags), a full-face or half-face respirator is the best option to prevent exposure.
Respirators have specific cartridges that stop the inhalation of certain hazards. VOC cartridges are required to keep out the organic solvents most used. However, respirators will only protect as they meant to be if they are fit-tested, and properly cleaned and stored.
Last, eye protection via safety glasses is an obvious and thankfully well-practiced habit even in workplaces without chemicals. Unfortunately, the commonsense practice of making sure workers are wearing long pants, shirts with sleeves or lab coats, and closed-toe shoes (preferably non-absorbent) is more difficult to enforce if the location is in warmer climates.
All that said, for those who are dabbling in the new, exciting world of cannabis extraction, let’s hope they are following Walter White’s lead and suit up before they get to work.
With more than 15 years of experience working and teaching in chemistry laboratories, Meghan McCormick, Ph.D. is the Senior Chemist and a part of the Herban Legends team at Spektrum Cannabis Technologies, an innovative, fit-for-purpose engineering services company. Meghan serves as the resident expert in the chemical processes that occur during cannabis extraction and post-processing and has helped design and test the Spektrum industrial-scale cannabis processing modules. Meghan worked as a Senior Chemist for the OSHA Salt Lake Technical Center for 3 years. She received her Ph.D. in Inorganic Chemistry at Indiana University studying organometallic electrocatalysis and anti-cancer prodrug activation mechanisms.
Member Blog: What’s new in Cannabis Compensation – CannaComp Update for 2020
By Matt Finkelstein, BlueFire Cannabis by FutureSense
Opening up the new year, NCIA and FutureSense LLC released results for the inaugural Cannabis Compensation Study. The collaborative effort sought to uncover trends in compensation and establish benchmark data, creating a singular industry-wide resource for all to use. With the initial report released, we have some exciting updates to share for the coming year’s development.
Culture Shift
The cannabis industry at-large has been transitioning from the black/traditional/legacy market to a legal one and understandably still maintains tinges of a culture of secrecy. Emerging markets also tend to be initially trepidatious about sharing critical business info, so this is especially prevalent in this line of work.
As the market expands and evolves, the need to understand trends and have accurate data supporting it is becoming more and more important. Cannabis companies can spend between 65-70% of their expenses on payroll. Being even 5% on- or off-the-mark can mean make-or-break in this highly volatile industry.
More and more cannabis companies are realizing the value of this type of market data. It is useful for establishing competitive compensation packages, setting growth trajectories, and managing tight budgets. To establish this data and reap the benefits of its findings, companies are becoming more comfortable with some transparency via an independent 3rd party service provider.
Expertise, Confidentiality, and Anonymity
FutureSense LLC brings over 30 years of compensation expertise across multiple industries. We worked with NCIA to establish a confidential and compliant salary survey that follows all Department of Justice and Department of Labor regulations to protect and ensure anonymity.
Our efforts producing the Cannabis Compensation Survey in 2019 laid out a solid foundation to continue to grow and expand the project. A couple of the key takeaways from the survey include:
Nearly 50 participating companies
Reportable data for 80+ positions in 12 job families
More than 100 additional job title benchmarks established
Growth and Development in 2020 and Beyond
In 2020, we are expanding the project by opening enrollment for submissions throughout the year, and by bringing in supporting partners such as recruiting firms and cannabis payroll applications.
Expanding participation will allow us to present data via demographic breakouts such as:
Industry sector
Location/region
Size (employee count, revenue, etc.)
We will also collect and report on benefits, incentives, sales, and equity compensation. We believe this will provide participating companies with an even deeper perspective into their own business practices and needs.
New Names
FutureSense LLC has recently established a cannabis-specific brand to support our on-going work and dedication to this industry. We brought on BlueFireHR – a human resources services firm with years of experience serving cannabis clients and other industries – and formed BlueFire Cannabis by FutureSense. BlueFire Cannabis will now be the main project partner alongside NCIA for the Cannabis Compensation Study. We’re excited to announce our other supporting partners in the very near future.
Sign-Up!
All cannabis companies with 10 or more individuals are encouraged to participate. We also welcome inquiries from other professional service firms or ancillary services about opportunities for supporting partnership.
In the cannabis industry, it is critical for cultivators to track crops throughout their production. Traceability benefits and protects cannabis companies, state governments, and the consumer. Without proper tracking systems in place, it would be impossible for states to tax businesses appropriately, it would be dangerous for consumers, and the burden of risk is placed almost entirely on the operator.
To combat this risk, states have mandated certain systems to track cannabis products called track-and-trace or seed-to-sale systems. There are a few leaders in the space – Metrc, MJ Freeway, and BioTrack. All three provide tracking software solutions for operators and contract their software to state governments.
These systems are designed for regulators, not cultivators. Growers instead have to purchase a second system to manage their operation. We’ve highlighted why it’s important for growers to implement a cultivation management platform (CMP) in the past, but it’s important to note how difficult it is to implement a CMP in the current market.
Growers are second class citizens in the cannabis world – and that’s a major failure of the industry right now. Growers are the backbone of this industry and we, as innovators, should be making it as easy as possible to track products through the supply chain. This is not just because it’s a good business decision or because it makes it easier for governments to tax products, but because it’s good for the industry. It’s good for the consumer. It’s the right thing to do.
However, the industry is disconnected. For Metrc required states, it takes weeks before you will hear from the company regarding connectivity and months before integration can happen. The regulatory systems all tout their API as a way for other software companies to integrate into their systems, but in reality, it’s not that simple.
Here’s what that means for growers. Growers are mandated to use regulatory systems to record weights and plant IDs (as well as other data) for the benefit of the regulator and the chosen software provider, but they cannot use those tools to their advantage. Instead, they have to choose to purchase a third-party system that may or may not be able to integrate into the regulatory system or they are forced to purchase the cultivation software from the same regulatory software provider, which again, may or may not fulfill their needs. If the grower chooses a system that they like but cannot integrate, it means they have to enter information twice. This is a costly burden and often leads to unnecessary data entry errors.
Most of the regulatory systems on the market today are ill-equipped to provide enterprise-ready software in the first place, but it’s not the fault of those software providers. This is a new industry. Most of the software companies on the market are undercapitalized and many are outsourcing development as a result. This leads to serious security issues and system outages, like we’ve seen in Washington and Pennsylvania.
A better way to handle the growth of this industry would be to regulate in a connected and open environment. Instead of mandating a particular software solution, mandate traceability and let the grower decide how to meet that requirement.
For example, under the Controlled Substance Act, the DEA requires certain reporting requirements and these are submitted to the DEA database ARCOS (Automated Reports and Consolidated Ordering System). However, a company could choose to use Microsoft NAV for its management solution and sync to ARCOS for submittal of reports.
In food, the USDA governs food safety requirements under FSMA (the Food Safety Modernization Act). FSMA mandates food producers create and maintain a food safety plan, however it does not require a specific format or content. There is guidance for how to create a plan, but FSMA also allows for flexibility in operations and there is trust that operators will create a plan that is right for their operation.
This idea of trust in the grower and a unified framework of requirements is missing in the cannabis industry. Some software providers have tried to close that gap, but relying on mandatory software and changes on a state-by-state basis will only hurt the industry. We need to enable growers to scale efficiently and legally. We should support growers and provide tools that make it easier for them to implement new regulatory requirements, not harder. Our industry should consider opening up the software market for regulatory reporting and at a minimum should encourage data integrations, not limit them.
Allison Kopf is the Founder and CEO of Artemis, the market-leading Cultivation Management Platform serving the fruit, vegetable, floriculture, cannabis, and hemp industries. Artemis won the highly coveted Disrupt Cup at TechCrunch Disrupt in San Francisco. Kopf was recently named one of Forbes 2019 30 Under 30 as well as one of New York Business Journal’s 2019 “Women of Influence.” Allison is an Investment Partner at XFactor Ventures and serves on the boards of Cornell University’s Controlled Environment Agriculture program and Santa Clara University’s College of Arts and Sciences. She is a Techstars Farm to Fork mentor and holds a BS in Physics from Santa Clara University.
Artemis provides a world-class Cultivation Management Platform that enables owners and managers of enterprise horticulture facilities to drive efficiency, profits, and growth while ensuring security and regulatory compliance. With Artemis, users can manage workflow and daily tasks, register crop batches, trace food safety issues, manage workers, and leverage data insights to increase workforce efficiency and crop productivity. Read our software buyer’s guide for more information.
Committee Blog: Cannabis Banking – Regulatory Outlook and Effective Compliance
During a recent webinar, we polled the audience on their current positions on offering financial services – traditional financial services – to direct marijuana-related businesses (MRBs). The results, as you might imagine, were mixed but we identified one common theme: The vast majority have taken action to address cannabis banking issues. This has been the theme we’ve been championing for years. The dichotomy between state and federal cannabis laws has placed our financial institutions in a precarious position: Bank the cannabis industry, be first to the market in doing so, create a non-traditional revenue stream and help to solve public safety and other logistical issues by solving the all-cash conundrum OR continue to watch from the periphery as others take the leap?
We see the number of financial institutions – banks and credit unions – that offer financial services to cannabis businesses expanding, but not to the level suggested by FinCEN SAR data. There remains a critical need for financial services within the cannabis industry.
Why the hesitancy in tackling this issue?
The current regulatory environment is a critical factor. As it stands, our industry is relying primarily upon the FinCEN guidelines to offer financial services to cannabis-related businesses. These guidelines, coupled with a surge of proposed legislation and a regulatory perspective on risk-based risk-taking, have allowed financial institutions across the country to effectively provide financial services to cannabis-related businesses. There is a key term we’ve been using: cannabis-related businesses. Within this term, we encompass direct and indirect marijuana-related businesses, hemp, and CBD entities. The majority of those polled feel more comfortable with hemp and CBD entities primarily due to the passage of the 2018 Farm Bill. Getting into the intricacies of how the Farm Bill and the USDA’s resulting interim final rule have added a layer of complexity to banking hemp and CBD businesses is more than we can cover in this blog post. Let’s focus instead on those providing financial services to direct MRBs, those that are state-legal, licensed cultivators, extractors, and dispensaries.
It IS possible to actively bank direct MRBs, to offer stable banking services that bring the cash off the street and provide a means for these businesses to operate more effectively and efficiently, and surely in a less costly manner than an all-cash business. The regulators are not criticizing financial institutions for providing financial services to MRBs; they review these services as they would any higher-risk, complex activity. When an institution takes on too much too fast or does not have sufficient controls to know whether it actually has a higher risk or complex business concentration within its customer base, the regulators will be critical… as they should be.
So, what are they looking for?
This goes back to the theme we mentioned: Financial institutions actively addressing cannabis banking issues.
Every financial institution, whether it intends to bank direct or indirect MRBs, hemp or CBD should have a Cannabis Banking Program that assesses the inherent risks of doing so, speaks to the controls necessary to effectively manage those risks, and determine whether they are well-positioned, or have a risk-appetite for, providing financial services to the cannabis industry. Conversely, if a financial institution that has no appetite for, or does not reflect sufficient regulatory health to bank cannabis, it must establish effective controls to ensure that position can be maintained.
But, this post is about empowerment. It is about speaking to the regulatory environment in which we find ourselves. It is about providing the perspective that banking marijuana, hemp and CBD CAN be done effectively, safely and soundly. Yes, there is a significant level of infrastructure needed to do so. Yes, it does come with the need for ongoing, strong risk management and control enforcement. Yes, it can be a bit scary. By establishing a Cannabis Banking Program, comprised of a comprehensive risk assessment that drives an equally comprehensive policy, a financial institution can provide financial services across the spectrum of marijuana, hemp and CBD, and undergo regulatory scrutiny with confidence. Moreover, such a program has become a regulatory expectation to support a financial institution’s cannabis position. This is also not a program where a financial institution will set it and forget it. The risk assessment and policy must remain dynamic as legislation evolves, as regulatory perspective changes, and as a financial institution’s position or outlook may shift.
This is an industry that has already proven prolific. This is a time that will be ingrained within our nation’s history. Let’s be remembered as those who championed the issues, established the country’s infrastructure, and set the standard for those who follow.
As a former Federal bank regulator and seasoned consultant, Angela’s knowledge of regulatory compliance, risk management and investment advisory services has established her reputation as a leading resource within the financial consulting industry, spanning consumer protection and anti-money laundering statutes, fraud and cannabis banking issues.
Angela is the Managing Partner and Co-Founder of Sterling Compliance, LLC, a consumer compliance consulting firm based out of Pittsburgh, Pennsylvania. Sterling specializes in consumer protection and anti-money laundering compliance within the community banking industry and enjoys a significant online presence with a client base spanning the coasts.
In December 2019, Angela joined Integrated Compliance Solutions, LLC (ICS) upon the ICS acquisition of Sterling Compliance as an independent operating subsidiary. Angela oversees the firm’s Compliance Strategies division, of which cannabis banking is a significant component. ICS is a financial technology, banking compliance and innovative payments solution provider helping financial institutions with complex solutions. In joining the ICS team, Angela has continued the firm’s mission of bringing its complete SEED-TO-BANK™ solution to financial institutions and cannabis-related businesses throughout the United States, and has expanded the firm’s industry engagement as a well-respected authority on the regulatory and compliance issues surrounding cannabis banking.
Member Blog: Job Description Templates to Build Your Dispensary Team
When it comes to opening a successful marijuana dispensary or cannabis retail store, the importance of building a strong, trustworthy team simply cannot be understated. Depending on the rules of your market, you may even be required to have certain positions filled before applying for a license. Either way, the people you hire — from front-line staff to shift leaders to managers — will ultimately make or break your operation.
If you’re new to the industry, you may be wondering just exactly what positions you’ll need to fill. Cannabis does share some similarities with other traditional retail industries; you’ll need customer service reps (often referred to as “budtenders”) as well as shift supervisors and general managers. But there are some significant differences between cannabis retail and other industries, mainly with regard to compliance, and you’ll see these reflected in some of the critical positions listed below.
Read on to discover a few of the most critical positions you’ll need to hire for in your cannabis dispensary — plus how you can get your hands on our free dispensary job templates guide!
Crucial Cannabis Retail Roles
Let’s take a quick look at some of the more critical cannabis-specific positions every dispensary needs.
Compliance Manager
There’s one simple principle that cannabis business owners live by: no license equals no business. That’s why it’s imperative that you have a manager on your team whose sole function is to ensure that every aspect of your operation remains compliant at all times.
Typical compliance manager duties include conducting regular audits of dispensary operations, investigating and resolving compliance concerns, keeping up with regulatory changes and ensuring understanding and adherence throughout the company, and liaising with regulatory and law enforcement agencies.
Inventory Manager
While inventory managers are also found in traditional retail operations, this role is particularly important in cannabis due to inventory compliance regulations. The inventory manager is responsible for overseeing product replenishment, conducting inventory audits, and ensuring all counts and reconciliations are correct and compliant.
Security Manager
Security is another major aspect of dispensary operations that is governed by regulation. Your local and state or provincial laws will spell out exactly what security measures you’re required to take, but at the very least, you’ll want a security manager on your team to help advise and implement security best practices and protocols.
Additional responsibilities of the security manager include compiling security reports, recruiting qualified security agents or guards, and ensuring all security systems and equipment are maintained and operable according to regulation.
Why Your Cannabis Job Descriptions Matter
The truth is, anyone can throw up a job ad online and attract some interest. But you don’t want just anybody working at your dispensary — you want the right people who understand the importance of the role they’re seeking and will do their best every day to uplift your operation.
It’s also important to set standards and clear expectations for your employees from the outset. A well-thought-out job description shows that you care about the role you’re seeking to fill and take the job seriously — just as you would want from any candidate who responds to the ad.
Finally, a thorough and comprehensive job posting that lays out all the responsibilities of the role makes it easier to hold team members accountable in their job performance. You don’t want to get caught with the old “that’s not in my job description” excuse — so cover your bases by making sure you lay out all the expectations of every position from the get-go.
Download Your Free Dispensary Job Description Templates
At Cova, we’ve helped hundreds of dispensary and cannabis retail operations across the U.S. and Canada maximize their operations. Plus, our parent company has 20+ years of retail tech experience under its belt — which means we know a thing or two about retail best practices.
We’ve compiled these dispensary job description templates to help you find the absolute best candidates for your cannabis store.
The California Statewide Utility Codes and Standards Program is considering the addition of energy efficiency standards to its Title 24, Part 6 Building Code for Controlled Environment Horticulture (CEH) facilities.
Currently, there are no existing energy efficiency standards in Title 24, Part 6 for CEH facilities and the Statewide Codes and Standards Enhancement (CASE) Team is actively working to help code-setting bodies develop building energy codes that not only save electricity but are practical and cost-effective.
Right now, the CEH CASE Team is in the process of gathering data on the types of equipment that are commonly used in cultivation facilities.
California growers, the Statewide CASE Team needs your help!
Please take a few minutes to tell them what equipment you currently use by participating in a short 10-minute phone interview. Involvement from stakeholders is a critical part of the energy codes and standards development process. It is important to get direct input from California growers so proposed codes can achieve significant statewide energy savings without placing an unreasonable burden on you or the industry. This is the first time the Statewide CASE Team is analyzing CEH facilities and we would like California growers to be a part of this historic and monumental process.
Any information you share will be considered confidential and will not be shared outside the Statewide CASE Team. They understand privacy is important to growers and will not publish or share your name for any reason.
If you would like to participate, please email joe@CultivateEO.com with the subject line ‘CA Grower Survey’ and include your first name, phone number and the best time to receive a call in the body of the email.
This program is funded, in part, by California utility customers and administered by Pacific Gas and Electric Company, Southern California Edison, Southern California Gas Company, San Diego Gas & Electric Company, Los Angeles Department of Water and, and Sacramento Municipal Utility District Power under the auspices of the California Public Utilities Commission. The Statewide CASE Team will provide the Energy Commission with the technical and cost-effectiveness information required to make informed judgments on proposed standards for promising energy efficiency design practices and technologies in controlled environment horticulture facilities. For more information about this process, visit:www.title24stakeholders.com.
Thank you for partnering with us to help build an efficient and sustainable horticulture industry in California!
Joe Sullivan is the technical director and co-founder of Cultivate Energy Optimization, an energy management firm that works exclusively with utilities and governments to design and implement energy management programs specifically for the controlled environment agriculture industry. CultivateEO currently administers programs for utilities across the U.S. and Canada, including the country’s first state sponsored cannabis energy management program in CO. Joe serves as the company’s national expert on indoor ag. and energy management technologies working closely with over 100 cultivators to develop and implement energy management strategies. Prior to forming CultivateEO, Joe worked for the USDA supporting their research on global climate change and its effect on field crops. Joe is a Certified Energy Auditor through the Association of Energy Engineers and hold a bachelor’s degree from the University of Illinois Urbana-Champaign in Natural Resource and Environmental Sciences.
Member Blog: The Women in Cannabis Study – Advocacy, Allies, and Voting
It can be easy to forget the beginnings of the cannabis industry. The stigma we had to fight. The laws we had to change. The pounding anxiety stemming from societal pressure and legal threats. But here we are in 2020, leading a nearly $10 billion industry in the U.S. with a promising future.
Being at the beginnings of a new industry is a powerful experience; seeing the fruits of our labor and the positive effects of legalization have been galvanizing and heartening. We’ve built something unique. But it’s still subject to the pressures and pitfalls of any other industry.
We’ve worked on legalization, supply chains, and policy, but what about equity? What about ensuring that the industry was diverse? And most importantly, how do we even know where we’re starting from?
The only way to move forward was deceptively clear: gather the data. I founded the Women In Cannabis Study after hearing stories of real women and recognizing the need for our undivided attention to shift to diversity and inclusion in the cannabis industry.
Much like a lot of the research in the cannabis industry, anecdotal data has ruled. In some ways, the lack of clinical research in cannabis has gotten us away from valuing qualitative data when looking for insights into particular issues in the cannabis industry. Ultimately, we need substantial numbers and stories to understand our industry and ultimately, form a game plan for equity.
So let’s start with the numbers. So far, data from our survey shows that 68% of women identify as heterosexual compared with 2010 U.S. census data showing 95% heterosexual. It’s a heartening sign that on its face, this is a welcoming environment for people of various sexual orientations.
Unfortunately, our findings also show the industry isn’t immune to sexist behavior.
By asking hard questions through the study, we’ve pinpointed that 33% of our sample as of February 5 have been sexually harassed while working in the cannabis industry. 1 in 3 is a huge number. It’s also worth noting that in our survey, 52.6% of women reported being sexually harassed in another industry—a sign that there might be a substantial difference in the cannabis industry to build on so that we can get that number to 0.
Additionally, only 23% of our study sample say they are paid the same salary as male coworkers in similar positions and 52% feel they have lost opportunities because they are a woman. Fifty-nine percent of women have experienced bullying or lack of support from other women in the industry, showing that even new industries are not free of toxic professional dynamics in the wider business world.
So we have work to do. Or as I like to think of it, we have an opportunity.
That means not going down the same rabbit hole many industries have. It means data points sourced from an academically rigorous study. It means stories about bud-tenders, growers, scientists, extraction and edibles manufacturers, lawyers, doctors, and activists that emerge as a direct result of an academically rigorous study. It means industry-wide alliances.
Alliances come from a shared desire to make big changes. And that only happens when we decide that our goals are worth sharing.
The reality is, we need everyone’s help to tell the full story. While we have enough responses to tell the story of women as a collective group, we are lacking diversity and representation in our sample. We need at least 50 of each of the following populations of women in order to compare communities of women and we aren’t there yet.
If you believe our goal is worth sharing — if you believe that doing the work of creating equity is worth it — tell your story. Encourage your employees to tell theirs. This industry doesn’t belong to one person. Let’s find a way to show that to the world.
The Women In Cannabis Study (WICS) is an academically rigorous, global, comprehensive quantitative study to explore, document and ultimately support women’s participation in the cannabis industry. This groundbreaking study supports the development of actionable recommendations and strategies to make the cannabis industry equitable and inclusive for everyone. The WICS mission is to tell the story of women, as well as individual women’s stories—with data. The study was developed by Jennifer Whetzel, founder of Ladyjane Branding, joined by U.S. research lead Dr. Nicole Wolfe of Wolfe Research & Consulting.
Ladyjane Branding empowers entrepreneurs to build a smart, strategic and consistent brand identity. Founded by veteran marketing executive, Jennifer Whetzel, Ladyjane has simplified the branding techniques used by Fortune 500 companies. Her signature creations include the Two-Hour Brand Makeover, Ladyjane’s Brand Archetype Quiz, and an Archetypal Segmentation Model – all designed to provide inspiration and guidance to help brands create deep emotional connections with consumers, multiply the effects of marketing and advertising and increase their company’s value.
#IAmTheCannabisIndustry: Joseph Hopkins, The Greener Side
Joseph Hopkins, with his wife Chelsea, owns and operates The Greener Side, a dispensary in Eugene, OR. As some of the original entrepreneurs to open a dispensary in the state of Oregon, their story of being raided by federal authorities shows how resilient one needs to be in the cannabis industry. Hear their story in this video feature.
Committee Blog: Opportunities & Challenges with Next Gen Packaging In the Legal Cannabis Market
It’s a new year, a new decade and quite frankly—a new era of packaging in the cannabis industry. We are officially face-to-face with next gen packaging in our ever-growing market. But what is next gen packaging, anyway? By definition, next-generation packaging is “basically a packaging technology, which possesses different advanced features, such as traceability, offers various benefits such as product shelf life extension and provides product quality information.”
Essentially, it’s taking our cannabis packaging to the next level.
The Growing Opportunities
With new products, formats, and technologies available, the opportunities for next gen cannabis packaging are limitless. In fact, there are so many options for next gen technologies that our NCIA Packaging and Labeling Committee has organized a subcommittee that is dedicated to the topic. We’ve also created subcommittees for Sustainability, Honesty in Labeling and Intellectual Property and Protection. A new era for packaging indeed!
Today’s cannabis cosumers are supporting the legal market for its quality and transparency, and today’s cannabis retailers need accessible platforms to educate them. These dynamics create an environment where next gen packaging (and merchandising) can really shine. With these new tools, brands can immediately engage, inform, and incite action.
Dreams Vs. Reality
While our hopes are super high for next gen cannabis packaging, the reality can be a bit of a buzzkill. In a state-by-state market, the variables for packaging create an inherently significant expense. And with regulations frequently shifting, it makes investing in premium packaging challenging, to say the least. There’s also the complication of managing data and actions behind a next gen platform. Worth the effort? We sure think so. And the good news is that next gen packaging is designed to be measurable so there’s data to evaluate its impact.
Promising Examples
The applications of next gen packaging for cannabis are seemingly limitless. Everything from a simple QR code, to complicated anti-counterfeiting technology, are possible. Augmented and virtual reality, scratch and sniff add ons, and improved breathability all present powerful opportunities to quickly and effectively affect a purchase decision.
KURZ is really pushing the boundaries of cannabis packaging with value-added security and technology solutions that are not only effective but purposefully decorative. Think holograms on packaging that can be used for anti-counterfeiting and other special finishes that add pop but are also sustainably produced. Now we’re talking next gen!
BUNDLAR is getting ahead of the curve with what they call “AR made Easy.” By making aspects of AR technology publicly available as well as offering customization, brands can more easily experiment with this exciting new platform.
The strategic approach to structural design that Greenlane is taking and the inspiring steps SANA Packaging has made with hemp-based materials are other compelling examples of the momentum in next gen packaging. Perhaps the most promising example of all is that as an industry, we’re just getting started.
New Decade, New Attitude
Our subcommittee predicts more exploration in cannabis with packaging that covers the exciting world of next gen possibilities in this new 2020 era and beyond. Which brands will step up? Will retailers ask for it? Will consumers pay for the experience? In an industry that refuses to stand still, these questions will inevitably be answered. The Packaging and Labeling Committee will be watching and sharing more examples and insights in additional articles.
Are you using next gen packaging? Drop a comment and share your experience!
Committee Blog: Interstate Cannabis Commerce Will Benefit Public Safety, Consumer Choice, and Patient Access (Part 2)
By Sean Donahoe, Founder and CEO, Sungrown Developments Inc. Member of NCIA’s State Regulations Committee
In Northern California’s legendary cannabis growing region of Mendocino, the elected county sheriff was recently a competitor at a homebrew festival, jovially pouring samples of his “Pretty Sour Powerful Sider” (jokingly referring to the “Public Safety Power Shutoffs” recently implemented by the electricity utility PG&E to prevent wildfires.) While this relaxed scene of neighbors bonding in the wake of shared inconveniences was not exceptional in itself, here, Sheriff Allman was posing for selfies with licensed (but possibly a few unlicensed) cannabis cultivators sharing the liquid bounties of harvest for the benefit of a local nonprofit.
For nearly a decade, the elected officials and staff of Mendocino county have worked together to normalize the local cannabis farmers by providing a pathway for medical cannabis cultivation permits, long before the state established a licensing system. This public policy process brought once-outlaw cannabis growers into conformance with every regulation of modern life: from building code standards to streambed alteration regulations to the quantification of gross receipts for tax collection. Bringing regulators onto these farms has curtailed previous practices that may have threatened consumer safety: pesticide and other chemicals are now tracked and regulated, while every gram can now be tracked back to its very plot of origin (in case of a safety recall or other concerns post-harvest.) This has been unquestionably difficult for and disruptive to many heritage and small farmers, but it has also allowed in these regions for simple scenes of social bonding and neighbors trusting neighbors again, as participants in the illicit sector were normalized into first their local county’s community then into a system of state license and next (hopefully soon) into a web of regulated interstate commerce. The process of bringing every farm into the regulated supply chain is far from complete, of course, and there are still illicit operators producing for consumers in urban areas in the state and beyond.
Rather than dwell on the incomplete success of California’s ongoing efforts to bring order to the world’s largest cannabis marketplace, it is essential to focus on the quality of life benefits from every cannabis operation successfully brought over from the traditional market to the regulated sector. Each licensed operation makes for one more safe workplace, one more source for lab-tested products for consumers and patients, and one more farm abiding by environmental regulations while providing stable employment and economic sustainability in rural communities. Under the previous medical cannabis paradigm, while there was certainly an abundance of responsible operators, there was virtually zero guidance from the state on matters of workplace safety, manufacturing standards, or environmental compliance. We are now several years into a robust legislative and administrative rulemaking process that has established a (mostly) clear set of rules of the road for commercial cannabis activities. It has unquestionably been a bumpy road for many of the legacy farmers to comply with new regulatory standards, but we are nonetheless able to say that there are now thousands of well-regulated cannabis farms in California (and southern Oregon) eager to sell their clean and craft quality products in a hopeful system of interstate commerce.
Has every cannabis farm in California transitioned? Of course not, but neither have the illicit cannabis economies been entirely supplanted by adult-use cannabis retailers in Colorado and Washington. Sensible and sustainable cannabis policy reform is a process, not a simple flipping of a switch from “illegal” to “legal,” and Americans should be realistic about the progressive and iterative nature of this process. This process, like most evolutionary processes, has already experienced several inflection points, transformative moments that noticeably shifted public opinion or opened up new frontiers in policy reform. While the earlier era of medical cannabis state laws certainly created a base of public opinion and laws, it was questionably the passage of adult-use ballot measures in Colorado and Washington which brought onto the global stage and accelerated the awareness that adult consumers could buy cannabis in clean, responsible retail locations rather than furtive or even dangerous transactions in the illicit marketplace
Throughout this policy process, we have established that licensed retail options can be scaled without negatively affecting public safety and are highly efficient competitive enterprises, offering consumers ample product selection and low prices. In both Colorado and Washington states (but also in later states) we have seen imbalances for some time as market forces, regulatory factors and new cultivation capacity coming online have all helped to create price fluctuations, product shortages, and other supply disruptions. These disruptions were not unique to these early states and will likely continue in every market as new in-state regulated options come online in fits and starts (but when interstate commerce becomes possible we should expect significant price fluctuations unlike any seen to date.) During these fiscally trying periods, we have often seen cannabis operators attempt to cut corners on compliance to make ends meet, which can lead to compromised consumer safety and public safety. The goals of consumer availability and cost competitiveness should be foremost in the minds of policymakers crafting cannabis policy reform nationwide, most notably in the anticipated markets of the Northeast. As these next anticipated adult-use states are designing the framework of their retail and distribution systems, strong consideration should be taken on the potential benefits of quickly and effectively scaling their programs by incorporating interstate commerce as soon as (politically) possible.
The Interstate Commerce Conversation
As the serious policy conversations about compliant interstate cannabis commerce begin, it is helpful to study how in our proverbial laboratories of democracy we can see that decreasing retail friction and shifting consumers from the illicit marketplace benefits crime reduction efforts and improves overall public safety. We should also note that retail cannabis sales have continued to grow in Colorado and Washington, even after the initial novelty and the surge of tourism waned, while legal sales have supplanted illicit sales. These early-adopting states have created models that are addressing consumer demand as national interest in cannabis for wellness and adult-use purposes are soaring and the cultural normalizing continues to occur on a global scale. Interest is high, consumer demand is real, and evidence shows that our drug reform policies should be crafted to bring every cannabis consumer transaction into the regulated supply chain in order to fulfill the demand while benefiting from increases in public safety.Interstate commerce could provide not only safer products but also a greater variety of quality and highly competitive offerings. For medical patients and wellness-oriented consumers, interstate commerce may be the only viable means of access for certain formulated cannabis products or cultivars, especially in smaller state markets.
In addition to the above benefits, regulated interstate cannabis commerce system could provide a more robust and differentiated production and distribution network combined with the ability to rapidly scale retail sales and address insufficient cultivation capacity in new adult-use markets.Cannabis consumers are price sensitive and illicit market retail options continue to entice consumers in states with functional adult-use programs such as California (or Canada), where there is an insufficient amount of licensed retail options to address total consumer demand. With the beginning of adult-use sales in Illinois and larger adult-use states yet to come, it is frankly a bit difficult to envision how total consumer demand will be able to be fulfilled in any near term by relying on licensed cannabis cultivated in-state alone.
The Safe Vaping Discussion
While moving to allow interstate commerce will best position licensed operators to compete with the prices available to consumers in the illicit sector, moving towards a borderless system of production and distribution will also increase safety and access for patients and consumers. Most prominent is the recent nationwide discussion on vaping and vaping-related issues, where tainted products and resultant injuries have been found in the unregulated, illicit sector (or in a very few instances from licensed but arguably under-regulated sources.)Notably, NCIA’s Policy Council established a Safe Vaping Task Force to work on these issues and has released a more comprehensive document advocating for the expansion of a regulatory approach for the safe manufacturing and distribution of cannabis products, whether vape cartridges or otherwise.
The issue of vaping extends to broader issues of product safety including educational campaigns, quality assurance, and testing programs, supply chain integrity, track and trace, and other reporting systems, and (when all else fails) a capable and sophisticated product safety recall system and these are all necessary components of a well-regulated marketplace. These consumer safety programs have already been carefully designed and stress-tested in Colorado and California and the insights from these systems and those in other states should be incorporated into the crafting of interstate cannabis policy (which will require significant harmonization of Certificates of Analysis and testing standards, packaging and labeling standards, etc., again all of which will benefit patients and consumers by offering greater predictability and reliability of their preferred products.)
Multi-State Coordination
In various forums, we have begun to see state regulators liaise with each other and we hope to see more coordination in the future and potentially an earnestness in harmonizing standards where statutorily possible. This multi-state coordination on product safety standards would be accelerated as part of the regulatory coordination efforts that are likely necessary for interstate commerce and, again, consumers and patients will benefit from safer cannabis and cannabis products, and we see NCIA as the critical player in this coming national conversation. In conclusion, moving to a system of regulated interstate cannabis commerce will have tangible benefits for the general public, for consumers and patients and I encourage forward-thinking members of the industry to participate and help manifest a system of interstate cannabis commerce with NCIA, its Allied Associations and other industry groups.
After studying Russian affairs and working as a political consultant, Sean Donahoe co-founded the California Cannabis Industry Association. He served as its Deputy Director through 2014 when he transitioned to consulting for investors and operators, communicating with public stakeholders, serving on local government committees, and advising industry trade groups. He holds an MSc in Government from the London School of Economics and is CEO of Sungrown Developments Inc., an advisory firm and holding company in Oakland, California.
Member Blog: Common Interior Design Mistakes that Dispensaries Make
As the legalization of cannabis spreads rapidly throughout the United States and across the globe, new medical and adult-use dispensaries are opening just about every day. The progression of architecture and design within dispensaries has expanded just as quickly as the legalization of their products.
The saying, “never judge a book by its cover,” has been ingrained into our brains since our adolescence. The truth is, consumers are first drawn to a product or location simply by the look of it. That is why your space must stand out from your competitors. From choosing the right location to conceptualizing layouts, here are a few major mistakes to avoid when designing a dispensary.
Layout
The foundation of any dispensary design should be rooted in the customer experience. A poor layout can interfere with traffic flow, lead to security issues, and cause longer wait times, which upsets patients. The goal is to create an effective layout that provides efficiency for patients while encouraging them to spend more time in the store, discussing products and treatments.
To achieve this goal, designers must have a deep understanding of how a “typical” customer will move within space and in what order. Mastering that concept allows designers to make the best use of the available space.
Basic Interior Design Features
A dispensary does not have to be a cold, sterile environment; in fact, it shouldn’t be! New patients may already be intimidated; bright and welcoming furnishings and color palettes will contribute significantly to their experience. Additionally, an inviting design will help attract and retain patients.
Interior design can quickly become mismatched and overdone. To avoid your design and layout, looking discombobulated, stick to a style, and keep in mind that less is more. Adhering to an overall aesthetic will ensure your elements flow together and complement one another.
Another major factor contributing to the layout and function of a dispensary is the merchandise display. For starters, all of the displays should be made of the same materials. Whether it be wood or glass, keep it consistent.
Now, think about the customer experience. Products layered in vertical displays tend to make browsing the selection easier than a flat surface.
Finally, make sure you build out the appropriate amount of displays. Too much space and the dispensary will look like it’s lacking while not enough space will leave it looking cluttered.
Furniture Selection
To you, the words cheap and inexpensive may be synonymous, but to an interior designer, something defined as “cheap” implies that it is poorly made and, therefore, of low quality. With that said, avoid purchasing cheap furnishings. Opening a retail cannabis location is a costly feat. So, it’s understandable that you would want to cut costs where you can. Know that cheap furniture and furnishings can tarnish a customer’s experience as well as your dispensary’s reputation. Most importantly, buying cheap seating and tables from budget vendors that are not for commercial use can lead to unexpected claims.
Dispensaries follow the same rules as retail stores
As a store-front business, foot traffic will be consistent. Failing to prepare for the long-term wear and tear of your floors, couches, and tables, etc., can be costly.
Practicality is essential here. Select flooring and surfaces that require minimal maintenance and won’t show visible signs of deterioration. The furniture should be durable enough to last and comfortable enough to function well for all ages and abilities.
Lastly, remember that the design of a retail store does not change from year-to-year, if ever. Create a timeless design.
Location
Location is one of the most important elements that factor into the success of any retail business. Prime locations support long-term success.
Unfortunately, prospective dispensary owners can not pick any old retail space they want. Due to rigid state laws and local regulations, they are limited in terms of available real estate. Familiarizing yourself with an area’s zoning laws is critical for establishing your business in the best possible location.
ATMs
Given the current status of the banking laws within the cannabis industry, the majority of purchases still need to be made with cash. Do not overlook an ATM when conceptualizing the layout! If there is nowhere for a patient to withdraw the cash necessary for a purchase, owners are missing out on sales.
If your budget allows, offer cashless ATM services to enable quick and safe transactions, which not only makes purchasing more convenient for customers but also adds to the security of your dispensary by limiting the accumulation of cash.
Perpetuating Old Stereotypes
The modern-day cannabis consumer represents a cross-section of the diverse population. Creating an environment that plays into the negative stereotypes will turn off a good portion of consumers simply because they will not want to be associated with the old stigmas surrounding marijuana. Paying homage to Jeff Spicoli will not only offend a majority of potential customers, but it will also draw unwanted attention from the surrounding community and law enforcement.
Christina is a certified Interior Designer with 20+ years of experience in the industry. Chris received a Bachelor of Science in Interior Design from Philadelphia University and honed her skills as an interior designer with several large architecture firms in Philadelphia. Specifically, while with Ballinger and EwingCole, Chris gained considerable experience in a variety of market sectors including healthcare, research and development, government, education and sports and entertainment, overseeing dozens of multi-million dollar projects. Christina first established herself in the cannabis industry when she was recruited to join a team of experts assembled by Philadelphia-based attorneys and consultants Moriconi Flowers, Ltd. to assist clients in obtaining permits to grow, process, and sell marijuana. Moriconi Flowers intended to coordinate a group of diverse professionals to act as strategic partners to support marijuana permit application projects and identified Christina and Design 710 as ideal to provide building/zoning code analysis, budget and schedule development, and interior design services to their clients. Christina quickly became an integral part of the team.
Design 710’s successes have included designing the project for the winning application and first dispensary to open in Philadelphia, designing the project for a winning grower/processor applicant in the Delaware Valley, and designing the winning project for an additional marijuana dispensary permit holder in the Philadelphia area.
Design 710 was created to help assist both new and experienced businesses to navigate the ever-changing cannabis industry. Christina’s intuition and experience has made her the ideal interior designer for countless projects, including 3 dispensaries she opened with Restore Integrative Wellness Center in the greater Philadelphia area over the last 2 years. Christina’s experience working within the recreational and medical cannabis industry makes her an excellent strategic partner, and her unique vision is complemented by years of experience navigating the ins and outs of opening a dispensary. Having provided design assistance and consultation to projects in Pennsylvania, New Jersey, Ohio, Connecticut, Massachusetts, and Missouri, Christina has a wealth of experience navigating multiple markets.
Video: Episode #1 of NCIA Today – Industry Socials, #NECannaBizCon, and Sen. Crapo, and more!
Check out the first episode of NCIA’s new monthly video newsletter, NCIA Today! In this episode, we cover NCIA’s first Industry Socials and Trade Show of the year, Sen. Mike Crapo’s comments on cannabis legalization, and what NCIA’s Allied Associations Program is!
Member Blog: 2020 Foresight – What To Focus On (And What To Ignore) In The Year To Come
by Brian Chaplin, Chief Brand Officer at Medicine Box
Not even a month into the new year, and some of the biggest players in the cannabis industry have already been hit with several crippling blows. While we’re thankfully a long way away from the federal raids of yore, we’re seeing cutbacks, layoffs and corporate “realignments” in California across the board, some of them by the biggest names in the industry. When the big boys like this are struggling, what does that say for the OGs?
First off, speaking as a California cannabis entrepreneur who has survived both the post-64 aftermath, an armed robbery, AND subsequent charges by the Nevada County Sheriff’s Department, I can assure all of you that NONE of this can crush you if you are determined enough to survive and make the proper sacrifices at the right time. Not too soon ago, I posted some observations for a more inclusive, impactful and interconnected cannabis industry which went viral on Instagram, and I decided to expand upon them for the benefit of the NCIA’s members. There’s going to be a lot thrown at us this year, and I’ve found that I’ve raised my chances for survival by determining what to focus on and what to ignore.
WHAT MATTERS
Making the Right Alliances: Since our foundation in 2016, Medicine Box has carefully selected the sorts of partners we work with. Not only should they fill in the gaps in our organization, but they also have to understand the plant and the culture that has developed around it. People like the Caladrius Network, which has distributed medical cannabis for free to catastrophically ill children, or House of Harlequin, one of the original CBD breeders, have helped us become better stewards of our consumers. Simply put, alignment is not a trend; vet them wisely and give as much as you get.
Get out of the Cannabis Bubble: The cannabis consumer we’re all looking to reach simply isn’t going to meet us halfway. Some of our partnerships have provided valuable beachheads into the sorts of communities we all need to convert. The feedback we have gotten from the live music webisode series Jam in the Van and the LA-based popup concert promoters Silverlake Sessions has helped us to finesse our marketing and product creation immensely and connect to the audiences we need to reach. And we expect to do more of this in the year to come.
The Brand Is Key: I don’t have to tell you how powerful the Apples and Nikes of the world are. People are profoundly loyal to a brand that is in turn loyal to its foundational values. Our Seven Pillars of Nature, Music, Food, Mindfulness, Community, Collaboration and Recovery are emphasized in everything we do as a team
Education, Education, Education: You simply cannot do enough of this with the products we’re creating. We’re constantly having to fight back certain misconceptions, such as the idea that THC is strictly recreational, that even the industry itself tacity promotes. Even the most devoted consumer has something new to learn about many of the new products and methods of ingestion. You’ve got to keep at it until the numbers show it’s starting to sink in.
WHAT DOESN’T
The Rush to Vertical Integration: Too many people are trying to do it all at once. We’ve managed to avoid crashing early by picking a lane and sticking with it. So ask yourself: are you a medicine maker? A cultivator? A manufacturer that wants to make oil? Most of the big boys I just mentioned are suffering precisely because they tried to do it all too soon. Don’t let this happen to you!
Going Big: One of our strongest partners, Brent Gerson, heads the subscription box/research service The Study. To paraphrase him, one of the most important things he’s found from surveying his customers is that you can’t learn much about the average cannabis consumer from 30,000 feet. Making those consumer connections is crucial, and size often obscures those connections. You become so focused on compliance and data that you forget there’s a human being at the other end of the supply chain. My own social media work has helped start those conversations, and it means a lot for people to know who they’re buying from. You can’t get that from a billboard.
The CPG Mentality: The move to commoditize cannabis has not only hit craft growers and product makers hard; it has also short-changed the consumer. Moreover, it moves away from the core values of the heritage cannabis community here in California, which has sustained it for generations. Especially if you’re making a product that serves a specific wellness purpose, such as our relaxing tincture Equanimity, a commoditization approach is simply not appropriate. The sooner the industry learns that, the better.
This being 2020, we’re looking at an election and possibly a few more states coming online with legalization. While California is unique, it’s still a market everyone wants to crack sooner or later, and it’s made a few mistakes everyone is learning from. While the future is far from certain, I expect to be at this point next year looking back, regardless of the changes I’ve made, being thankful I executed on the priorities I’ve made over time. Will you?
Brian Chaplin started the cannabis/hemp-infused herbal wellness brand Medicine Box in 2016. Beginning his trade as an underground cannabis cultivator in 2009, Brian has released a series of award-winning edibles, snacks and tinctures, including Equanimity, which won second place for Best Tincture at the 2019 Emerald Cup. He lives, works, skis and meditates on the shores of North Lake Tahoe.
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Allison Kopf
As a former Federal bank regulator and seasoned consultant, Angela’s knowledge of regulatory compliance, risk management and investment advisory services has established her reputation as a leading resource within the financial consulting industry, spanning consumer protection and anti-money laundering statutes, fraud and cannabis banking issues. 
After studying Russian affairs and working as a political consultant, Sean Donahoe co-founded the California Cannabis Industry Association. He served as its Deputy Director through 2014 when he transitioned to consulting for investors and operators, communicating with public stakeholders, serving on local government committees, and advising industry trade groups. He holds an MSc in Government from the London School of Economics and is CEO of Sungrown Developments Inc., an advisory firm and holding company in Oakland, California.
Brian Chaplin started the cannabis/hemp-infused herbal wellness brand