The Small Business Tax Equity Act: Supporting a Just Cause at NCIA Lobby Days
by NCIA Editorial Staff
The American cannabis industry should be proud of generating thousands of jobs and billions of dollars in tax revenue for America- but can you imagine how much more we could do without the 280E tax burden?
While it’s an exciting time to be in the cannabis industry, our businesses are struggling under crippling federal taxation. It’s all due to Section 280E of the IRS tax code. A provision originally set out to penalize bad actors in criminal market. Unfortunately for our industry, the federal government has yet to remove the plant from its list of scheduled drugs and continues to deny cannabis as a fully legal product with medical benefits. In sum, if your business touches the plant then you’re in danger of losing your profits under Section 280E of the IRS tax code. It’s a critical time for us to come together and demand change for the industry at the federal level so our business owners can do what they do best; grow their business and give back to the community.
Despite the 280E difficulties, Portland’s MindRite dispensary was voted the most charitable cannabis store by DOPE magazine. Owners Shea and Jaime Conley said they would give even more if their business was taxed like any other industry.
MindRite can’t write off their tens of thousands of dollars in charitable donations because 280E hinders it. “It’s coming out of our profits but its just something we do and has never been up for debate because we believe it’s the business owner’s responsibility to make the community around them better, said Shea. The Conley’s also said they would jump through even more hoops and regulations because it’s a privilege to be able to work in an industry they are so passionate about. But the fact remains, “if 280E wasn’t over our heads,” he said, “we would’ve expanded our business by now.” Without 280E they would reinvest the money they paid the government. “We could have two more dispensaries open,” said Shea.
As tax professional Jim Marty of Bridge Westexplained, businesses can normally retain profits from usual business deductions such as; employee salaries, utilities, facility rent, payments to contractors, and health insurance premiums. For those in the green space, anything outside of the cost of goods sold is not deductible. In efforts to level the playing field, Jim works with clients and lobbyists at the state level to allow for deductions. “We’ve testified in front of committees,” he said, “and some state tax rates are lower than the federal.” In prior interviews with CNBC and FOX Business, his advice is to understand your business plan because 280E creates an impossible situation for legitimate cannabis businesses.
State tax rates may be lower than federal in states like Colorado and Oregon, however, it’s not enough to offset the penalty they pay at the federal level. “We are aware of every dollar that goes out and comes in, it’s a must if you want longevity for your business,” said Shea. The dispensary deals with razor-sharp profit margins in anticipation of paying their penalty to the IRS every April.
It’s frustrating for business owners and employees. Mitch Woolheiser of Northern Lights Cannabis said his business growth is stunted as a direct result of the issue. “I can’t give my employees raises. I can’t put money back into my business. Instead, I’ve been hoarding cash in anticipation of what the IRS is going to take,” he said. In total, cannabis businesses are paying taxes on gross income which often amounts to paying rates that are 70% or higher. Comparatively, the corporate tax rate established by The Tax Cuts and Jobs Act of 2017 is only 21%.
That’s why we are once again taking to the steps of Congress in May for our 8th annual Lobby Days in Washington D.C. While in D.C., Jim said he hopes to meet with President Donald Trump. He said if the executive branch has authority to reschedule marijuana, he’d ask President Trump to categorize cannabis as a Schedule 3 substance or unschedule it completely because it would ensure that section 280E would no longer apply.
We also encourage everyone in support of a healthy, prosperous cannabis industry to talk to their Senators and Representatives about The Small Business Tax Equity Act. The amendment would exempt compliant cannabis businesses from the 280E provision which we believe would inevitably lead to in an influx of employment opportunities with more competitive salaries.
Member Blog: Pitch Perfect – Some Dos and Don’ts of Media Relations
The current media landscape is rapidly changing. It was much different a decade ago, five years ago, even a few months ago. Many magazines and newspapers—both print and digital—have sadly shuttered, some have cut back on publishing, while others have slashed budgets and staffs. Many times, these cuts mean reporters have to pick up more beats (it’s not uncommon for someone to cover, say, cannabis and local sports) meaning they are buried in work and deadlines and don’t have a lot of time to mull over your pitch or idea for a story.
Your goal is to make it easy for reporters to run your news. Here are some tips on what to do and what not to do when working with reporters.
DO: Throw a good pitch
A good pitch, just like the cliché sports analogy it refers to, should be thrown down the middle. It should be clean, hittable, and offer newsworthy information. (OK, that last line isn’t about baseball, but you get the picture.) Remember how busy reporters are and rehearse your pitch before getting on the phone until you know how to sell it in less than 60 seconds. While being upfront is important, it’s also okay to be creative. Help set the stage to pique a reporter’s interest, engage his/her imagination, and find the story quickly.
Tying your pitch into a larger story, trend, or current issue is a good way to get a reporter’s attention. There are big stories both on a regional and national level going on within the cannabis industry that you can tap into. For instance, Berkeley Patients Group, a well-known dispensary in Berkeley, CA recently did press outreach around the detriment of high taxes on the legal cannabis market. Because the dispensary’s leadership team has a close working relationship with the city and deeply understands the issues surrounding high taxes on cannabis, they were able to act as spokespeople and get coverage about the lowering of the city’s cannabis tax from 10% to 5%. The coverage helped get their name out to local cannabis consumers, but also contributed their reputation as a group of leading cannabis advocates, which is one of their main goals.
Another tactic in getting coverage is providing supporting and timely data and, if possible, information about the cannabis industry a reporter may not know. And, providing high resolution images, such as product photos, spokesperson headshots, and infographics will exponentially increase your chances of getting coverage. If you can offer all this, you’ll have wrapped your story in a nice package and made it easy for a reporter to tell that story.
DO: Build a relationship with reporters
Research is absolutely necessary to your success. Know who you are pitching, what they write about, and their writing style. There’s nothing that annoys reporters more than a pitch that has nothing to do with their publication or beat. Even at one media outlet, there may be multiple reporters on the cannabis beat, such as at the Associated Press and it’s important to know what each one of them covers, whether policy, products, health, etc., so that you know the right reporter to pitch.
If you have the opportunity, take the time to actually get to know reporters before pitching them. Take advantage of media in your geographic area, go to their offices or try to meet them for a coffee. You’ll also find the press attends cannabis industry conferences, which presents a great chance to meet reporters from across the country that you may otherwise never have the chance to meet in person. Face-to-face interactions, even for a brief moment, can go a long way when the time comes for pitching them. It helps build a foundation of trust for what you hope will be a long and fruitful professional relationship.
DON’T: Be a pest
Of course, even doing all your research and building that relationship the best you can, can’t guarantee a reporter will respond or write an article. You may have to tie your hands behind your back if you are tempted to follow up too many times. While it is important to follow up and maybe offer a different angle, stalking a reporter is one of the biggest mistakes you can make. Here’s the scenario: You send a pitch. You hear nothing. Re-send it. Nothing. Maybe a third time, and this time, with a phone call. Nothing. Chances are your email has been deleted. (And if this happens a lot, please re-read DO: Throw a good pitch.) If you do get in touch with a reporter and he/she says no, it’s time to cut your losses. It’s tough, but it happens to the best of us.
DON’T: Shotgun pitch
What’s a shotgun pitch? It’s pretty much spam. You send your pitch to a long list of reporters all at once (cringe) using BCC: (cringe). This is also one of the biggest blunders you can make in media relations and reporters can spot it a mile away. It’s better to stay targeted and contact seven key reporters with a well-researched and tailored story versus throwing a general pitch at 50 media targets and hoping something sticks.
DON’T stress and DO keep it on the level
Pitching the press can be intimidating and stressful, but reporters are always looking for newsworthy stories and will welcome your pitch if it is delivered in the right way. Be transparent. Be informative. Be helpful. Be patient.
Carol Ruiz is co-founder and Partner of Higher Ground PR and Marketing. Janitor, construction crew clean up, waitress, documentary filmmaker, adjunct professor… just a few of the paths Carol Ruiz walked before finally finding what she would do for the rest of her life.
At these former gigs, as founder of NewGround PR & Marketing (a highly regarded agency in the real estate space), at Higher Ground, and at dinner tables the world over, Carol is a storyteller. Storytelling being the heart and soul of public relations, it’s no surprise that Carol was drawn to the world of PR.
Member Blog: “Death Penalty for State-Legal Marijuana Businesses” Is a Good Headline; It’s Not the Real Takeaway
In recent days, and for the second time in 2018, the state-legal cannabis industry is abuzz over a new memo issued by Attorney General Sessions. Having revoked the Cole Memo in a January memo, the Attorney General’s latest memo addresses the use of capital punishment in drug cases. Notably, he urges federal prosecutors to consider the death penalty in drug cases—including in circumstances that facially could include the operation of large-scale state-legal marijuana businesses regardless of compliance with local rules.
There’s no doubt “Sessions to Execute Legal Industry Members” makes for an eye-catching headline, but it’s time to pour some cold water on the hype: It’s highly unlikely that federal prosecutors would ever bring such a death penalty case. And even if prosecutors brought such a case, it’s even more unlikely that they could convince a jury to impose a death sentence that would stand up on appeal.
Given the fervor over this news, it’s worth explaining why the death penalty shouldn’t be keeping rule-following business owners up at night. But stepping back from the sensationalized headlines, it’s also worth considering what the real takeaway from the memo should be.
First, the prospect of a federal prosecutor seeking the death penalty against an individual for conduct she committed pursuant to a state-issued license and in conformance with a state-promulgated regulatory system are exceptionally low. Ask anyone who has actually interacted with federal prosecutors (and not just seen Goodfellas or American Hustle): Federal prosecutors are, unfailingly, exceptionally dedicated public servants who care above all about wielding their powers fairly and judiciously and getting the result right. They want to prevent serious crimes and put away threats to public safety. The idea that they would seek the death penalty against the owner of a state-licensed marijuana business operating in strict compliance with those rules is farfetched. After all, by their very conduct those individuals are demonstrating their ability to abide by the rule of law.
Certainly, Attorney General Sessions is not a fan of the state-legal marijuana industries. But it is an incredible leap to believe that he intends to have prosecutors seek the death penalty in such cases. As the memo says, the Attorney General “encourage[s]” prosecutors to seek the death penalty “when appropriate.” There has been no indication to date that Attorney General Sessions or any other federal prosecutor believe the death penalty is “appropriate” for a rule-following licensed cultivator in Colorado or retailer in Nevada.
Second, even assuming a hypothetical prosecutor brought such a case and secured a conviction for the underlying offense, they would still have significant constitutional hurdles. As an initial matter, under the Sixth Amendment, those prosecutors would need to convince a jury in the state where the conduct occurred (and is licensed) that sufficient aggravating factors existed to impose the death penalty. Without getting too deeply into the legal weeds, the U.S. Supreme Court reiterated in 2016’s Hurst v. Florida that before a defendant can be sentenced to death, he has “right to have a jury find the facts behind his punishment.” Convincing a jury of the defendant’s peers in a state where the conduct is legal that the defendant’s conduct warrants the punishment of death would be a tall task for any prosecutor.
Moreover, even assuming prosecutors secured a death sentence from the jury, any defendant would immediately appeal asserting that such a punishment violates the Eighth Amendment’s prohibition on cruel and unusual punishment. As the Supreme Court reiterated in 2008’s Kennedy v. Louisiana, punishment for a crime must be graduated and proportionate to the offense under currently prevailing societal standards. That is a heavy burden for conduct that is licensed and regulated in the defendant’s home state. Particularly daunting for the prosecution is the fact that the proportionality inquiry includes consideration of which states permit execution for the offense. In this hypothetical case, the conduct in question is (1) not a capital offense in the defendant’s home jurisdiction, (2) not illegal in the defendant’s home jurisdiction, and (3) actually licensed and regulated by the defendant’s home jurisdiction.
So, if rule-abiding business owners shouldn’t spend sleepless nights waiting for a death penalty prosecution, what should they conclude from this memo? Foremost, they should recognize that their efforts to comply with state rules on marijuana are more essential than ever.
The Attorney General’s memo makes plain that federal prosecutors will aggressively pursue drug crimes. To the extent that a state-licensed business appears to those prosecutors to be violating local law and diverting marijuana to the criminal market or selling to minors, that is a prime target for aggressive enforcement. Savvy licensees are already building robust compliance programs to avoid providing any appearance that they are not in strict compliance with local rules. In a federal enforcement environment in which the Attorney General is encouraging prosecutions with a clear intent to deter bad actors in the future, those efforts become even more essential.
In short, the prospect of a death penalty prosecution of the owner of a rule-following, state-licensed marijuana business is very remote. The way to keep it very remote is to focus on efforts that demonstrate that you are, in fact, following the rules.
Michael Cooper is the co-founder and managing member of MadisonJay Solutions LLC, the leading regulatory advisor to adult-use cannabis companies. A graduate of Harvard College and Harvard Law School, he previously served as General Counsel of MHW, Ltd., a leading provider of compliance services in the beverage alcohol industry, and in the litigation department of Cravath, Swaine & Moore LLP, known as one of the nation’s premier law firms for nearly two centuries.
In order to run a successful PR campaign or build your own PR department you will need a set of tools that you can pull from again and again. Here are key strategies you need to tackle in order to build a successful toolkit.
Define your story. Story telling is at the heart of every PR campaign and will drive everything you do. As you know, cannabis is on fire wth new products introduced everyday. The ones who tell their story in a compelling way are the ones that will stand out. Ask yourself: how is your company, product, or service better or different than any other on the market? Is your product the first of its kind? Are you a bootstrap entrepreneur? Have you been a cannabis activist since the 90s? Does your company help people in need? Your story will be the DNA that is weaved throughout your toolkit, from your elevator speech to speaking to media.
Develop a media list. This list should have the following components: reporters’ names, titles, contact information, what they cover on their “beat,” —and this one is important—what you have pitched them and when you have pitched them. This is your guide to keeping organized and remembering who you’ve contacted. Cannabis beats are starting to fragment now into silos like “business,” “products,” and “lifestyles.” Don’t make the mistake of sending a business-focused press release to a lifestyle reporter. It’ll be ignored. There are companies like Meltwaterthat provide a comprehensive and constantly updated media data base. While there is a yearly subscription, it will help save an immense amount of time since pulling together a media list is time intensive.
Develop a media kit. When sending out a press release or pitching media, you should provide them with everything they need to run your news. Include facts about company executives and leaders as well as their headshots, a company overview, press releases, and compelling photos and images of your product or service. The goal of a media kit is to make it easy for reporters to understand the who, what, why, when and how of your company and its unique story. If reporters are provided with all this information (most importantly high-quality images and photography) at their fingertips, your chances of coverage increase. Your media kit should be online, digital, and easy to access.
Develop a press release. This could be its own blog but for now here are the key steps. Keep it simple. Stick to the who, what, where, when and how. Write a compelling headline that helps your news stand out and write the body of the release in the inverted pyramid style, meaning, have your most important information in the lead paragraph then include less important news below. (Industry secret: Most reporters will stop reading after the first paragraph. Make it a good one!) Write your press release in Associated Press (AP) style. This is the language that reporters understand and will recognize when they see it. Be upfront and transparent, clear and concise. Reporters are too busy to dig for the news in your release so keeping it simple will help you get more coverage.
Distributing your press release. Using your media list, send one email at a time (never do a mass, BCC: pitch), customize your email and make it personal. The goal here is to build relationships with reporters, not spam them. It’s important to follow up after sending your release but don’t make yourself a pest as reporters are overworked, cover myriad beats, and are always under deadline. Always. If you want a broader approach distribute your press release through a wire service. The huge advantage here is the breadth of media outlets your press release will get in front of, however, you won’t get that personal touch point. Wire services can be expensive but depending on the scope of your news, entirely worth it.
Leverage social media. Again, this could be its own post, but the short take is: use your social media channels (Facebook, Twitter, Instagram, LinkedIn) to announce your news. Since a press release is written in a specific style for reporters, feel free to re-craft for your social audience in a friendlier, accessible voice. Reach out to reporters on Twitter with your news (with a big caveat: some do and some do not like to be pitched on social media and in public; do your research before tweeting a pitch). Lastly, when and if you get any coverage, you must post it on your social media pages. It’s a powerful way to increase your visibility, build credibility, and connect with new followers.
Carol Ruiz is co-founder and Partner of Higher Ground PR and Marketing. Janitor, construction crew clean up, waitress, documentary filmmaker, adjunct professor… just a few of the paths Carol Ruiz walked before finally finding what she would do for the rest of her life.
At these former gigs, as founder of NewGround PR & Marketing (a highly regarded agency in the real estate space), at Higher Ground, and at dinner tables the world over, Carol is a storyteller. Storytelling being the heart and soul of public relations, it’s no surprise that Carol was drawn to the world of PR.
Member Blog: How CBD Helps Patients With Debilitating Conditions
As a dispensary budtender or owner, you always want to do everything you can to better serve your patients. Oftentimes, that means suggesting different strains and types of medical cannabis based on specific conditions and symptoms. To do that, you and the rest of the staff must understand the chemical makeup of marijuana, including the intricacies of cannabidiol and other cannabinoids.
Cannabidiol and Patients With Chronic Illness
Cannabidiol (CBD) is one of the two primary chemical compounds, or cannabinoids, found in the cannabis plant. The other is tetrahydrocannabinol, more commonly known as THC. However, unlike THC, CBD does not have the psychoactive properties that cause the user to feel high.
Instead, CBD alone can provide patients with many of the pain-relieving benefits of traditional marijuana products without creating that euphoric, but often debilitating, “stoned” feeling. This allows patients who prefer to avoid that effect — like children, the elderly, and recovering addicts — to still benefit from healing powers of medical cannabis.
So, CBD can be used to treat the pain that results from many conditions and symptoms, including cancer, epilepsy, lupus, Parkinson’s disease and related diseases. You can also use CBD to treat mental health conditions, such as anxiety, depression, obsessive-compulsive disorder, insomnia, and schizophrenia.
How Can Budtenders and Dispensary Owners Talk to Patients About CBD?
As budtenders, part of your job is helping patients understand how using CBD to treat chronic conditions can help them. Remember, most people probably have not heard of CBD, and patients may be hesitant to learn about it. Start by explaining the benefits of using only this cannabinoid, such as being able to avoid the high while still finding pain relief. If they seem interested, encourage them to ask questions and tell them more about the specific products that would best treat their symptoms.
A general rule of thumb when discussing marijuana strains is that indica strains — as well as indica-dominant hybrids — have higher CBD content, while sativa strains and sativa-dominant hybrids have a higher THC content. Of course, every strain has a different ratio of CBD-to-THC, but there are many that have little to no THC at all.
While the CBD strains a budtender should recommend will depend heavily on the patient’s specific symptoms, here are a few examples you can choose from:
Swiss Gold
Sour Tsunami
ACDC
Valentine X
Harlequin
Frequently Asked Questions About Cannabidiol
The best way to prepare for patients’ questions is to think about what they may be. Here are three common concerns patients will likely have about CBD:
Is It Safe for Children?
Yes — in fact, it’s incredibly beneficial for children suffering from epilepsy, specifically. One study found that epileptic children experienced an 80 percent reduction in seizures when they used cannabis with a high CBD content.
Will It Still Work?
While everyone reacts to marijuana differently, countless studies have shown CBD is effective in treating all sorts of health conditions and symptoms, like the ones discussed above.
How Can I Ingest CBD?
You can ingest or administer CBD the same ways you would take any other form of marijuana, including by smoking or vaping the herb or oil, eating or drinking an edible product, applying it as a topical lotion or taking a tincture or capsule. However, be sure to check your state’s laws on how you can take your medicine, as each has different guidelines.
Learn More About CBD and Patients With Chronic Illness From MarijuanaDoctors.com
Interested in learning more about how your dispensary can better serve its patients? MarijuanaDoctors.com provides patients with the resources needed to find a trusted doctor in their area and to find reputable dispensaries so that obtaining medication is simple. Check out our other resources at MarijuanaDoctors.com for more information. For even more benefits, register your dispensary with our site today.
Another Budget Deal: What Does It Mean For You?
by Michael Correia, NCIA Director of Government Relations
Following a brief shutdown in the wee hours of Friday morning, Congress came to yet another short-term budget deal to continue funding the federal government until March 23, 2018.
In normal budget cycles, Congress passes a fiscal year budget that goes from October 1 until September 30. But in these extraordinarily partisan times, Congress has been unable to agree on an annual budget and has patched together short-term funding bills called Continuing Resolutions (CR’s), which maintains current funding levels. Since just last September, there have been five such short-term CR’s. These short-term funding bills have not only hampered basic government functions, but have also affected military readiness and has even led to a federal government shutdown, which has lowered the public’s already dismal opinion of Congress.
After much negotiation between House and Senate leaders, it appears that the parameters of a two-year budget solution have been agreed to. The new budget deal is both bipartisan and bicameral (which has become a rarity in Washington, D.C.) and addresses many controversial issues that have hindered previous negotiations. This new budget deal increases funding levels for the military, provides billions in disaster relief, addresses infrastructure, education, child care, and attempts to combat the opioid epidemic.
But, in typical Congressional fashion, the details still have yet to be finalized. The Congressional Leaders have agreed to work with the leaders of the appropriations committees to ensure that all budget priorities are met.
So, what does this mean for your business and what does this mean for medical cannabis protections?
Since 2014, the federal budget has included language that protects medical cannabis operators from Department of Justice prosecution. These protections will be maintained in this short-term funding bill, so medical cannabis programs and businesses are protected until at least March 23, 2018. However, it is imperative that Congress maintains these protections (and even expand protections for adult-use) in the longer budget that is being negotiated between now and March 23. NCIA will continue our Congressional lobbying efforts and work with our partners and other advocates to continue these protections.
Our team in Washington, D.C., works everyday to make the industry’s voice heard, but nothing matches the power of a personal story personally told. Remember to join us for NCIA’s 8th Annual Cannabis Industry Lobby Days this year on May 21-23 in Washington, D.C.
Juicing is an increasingly popular health trend. Many people, from nutritionists to athletes, are consuming pressed vegetable juices to get the nutrients contained in leafy greens like spinach and kale. But what about cannabis?
Health Benefits of the Cannabis Plant
The leaves of the cannabis plant are rich in antioxidants, polyphenols and antibiotics, along with cancer-reducing and anti-inflammatory compounds. In fact, the U.S. federal government found in pre-patent research that CBD, which is a cannabinoid found in raw cannabis, is a stronger antioxidant than vitamins C or E.
Along with its nutritional value, raw cannabis can provide therapeutic effects and promotes basic cell function – activating receptors in your brain, releasing antioxidants, and removing damaged cells from the body.
Studies have also shown that consuming raw cannabis has the potential to treat lupus, arthritis and neurodegenerative diseases, help stimulate appetite and decrease nausea, prevent the spread of malignant prostate cancer cells, and prevent cell damage that can lead to serious illness and poor health.
Consuming Raw Cannabis
Consuming raw cannabis does not cause the “high” feeling that one gets when smoking cannabis or consuming it via edibles. This is beneficial for those who do not enjoy the psychoactive feeling often associated with marijuana.
By consuming the plant raw, one can receive all the nutritional and health benefits of the plant without feeling stoned. In fact, it’s been reported that you lose 99% of the health benefits of the cannabis plant when you smoke or cook it.
Juicing marijuana is the easiest and most convenient and way to consume the nutrients found in raw cannabis. Juicing the leaves of raw marijuana extracts essential minerals, vitamins and antioxidants, including:
Iron
Zinc
Calcium
Potassium
Selenium
Carotenoids
In terms of dosage, one suggestion is to consume 30g of fresh cannabis leaves per day.
Tips for Juicing Raw Cannabis
Add in 2- to 4-inch buds and 15 large fan leaves into a juicer. You can use the juice in smoothies with other vegetable and fruit juices, or freeze the juice to make ice cubes. Freeze leftover leaves to preserve their nutrients for future juicing.
Additional Tips for Juicing Cannabis:
Don’t use dry cannabis or nuggets that have already been cured for smoking.
Look for small, sticky crystals on the flowers and make sure that buds are amber colored.
Combine 1-part cannabis juice to 10-parts carrot juice to help reduce cannabis bitterness.
Additional Raw Cannabis Information
When incorporating raw cannabis into your diet, there are side effects to consider, including allergic reactions, possible ingestion of insecticides and pesticides, and compromised immune system from possible pathogenic exposure.
Consuming raw cannabis isn’t the best solution for fast symptom relief. Typically, it takes about three days to notice benefits. For some, the benefits may not be noticed for four to eight weeks as the nutrients build in your system.
To learn more about the benefits of cannabis, or to find a medical marijuana-recommending physician near you, visit MarijuanaDoctors.com.
Jason Draizin is the Founder and CEO of the Medical Cannabis Network and MarijuanaDoctors.com. Founded in 2010, MarijuanaDoctors.com is a secure portal for qualifying patients looking to connect and schedule an appointment with medical marijuana-certified physicians. The site has assisted in the certification of more than 300,000 patients in the U.S., and has established a network of more than 700 physicians nationwide.
Department of Justice Rescinds Cole Memo: Here’s what to expect
This morning, Attorney General Jeff Sessions announced the Department of Justice’s move to rescind the “Cole Memo” and two additional memos related to marijuana enforcement policy. These memos, issued in 2013 and 2014, have helped to clarify the Department’s response to state-legal cannabis activity.
This is disturbing news for the cannabis industry and the majority of U.S. voters who support legal cannabis. However, the rescinding of this memo does not necessarily mean that any major change in enforcement policy is on the horizon. This has been, and still will be, a matter of prosecutorial discretion.
NCIA’s team in D.C. is working tirelessly to ensure that the administration and the Department of Justice uphold President Trump’s campaign promise to not interfere with state-legal cannabis programs by making sure they understand that regulated cannabis is successfully undercutting the criminal market, while funding important state programs.
At this time, it’s critical the cannabis industry unify to amplify that message so it’s crystal clear. It’s also imperative that Congress take action to align federal legislation with the majority of states, which now allow some form of legal cannabis.
One pressing issue before Congress is Senator Leahy’s appropriations amendment which would prevent the DOJ from using resources to undermine state medical cannabis laws. (The Senate’s version of the Rohrabacher-Blumenauer Amendment in the House.)
Please call your U.S. Senators today and urge them to include the Leahy Amendment in the upcoming Omnibus Appropriations Bill.
Talking points to help guide your call are included on our online action page.
To learn more about NCIA’s advocacy efforts or the NCIA-PAC, please contact NCIA Government Relations Manager, Michelle Rutter by emailing Michelle@thecannabisindustry.org.
And, of course, if your business is not yet a member of NCIA, please join today so that we have the resources we need to prevent any rollback of the progress we’ve made in recent years.
Cannabis State Applications: Don’t Forget Your Security Plans
A United States marijuana production license from 1945
There are three things in business you should never do:
Be your own doctor
Be your own lawyer
Write your own State Cannabis Application
Having been involved in the cannabis industry the last few years, I have seen many businesses and entrepreneurs who have a strong desire to get into this industry. Some want to own cultivation centers and grow marijuana, others want to run a dispensary and sell the marijuana, and then there is another more ambitious group who wants to do both. I think this is great and I encourage all to get involved in this growing and ever-changing industry.
But before you buy your cannabis equipment and hire a staff, you will first need for your state to give you a license. In order to get this license, you will need to apply to the state for review and approval. Your application can range from 300 to 2,000 pages and will cover a wide range of operational programs, including a well-defined security plan.
The primary purpose of a cannabis security plan is to provide a safe and secure environment for your employees, patients and visitors. Your security plan will cover facility security, security surveillance, product security, and policies & procedures.
Just like a doctor who specializes in a disease or a lawyer who only deals in certain types of the law, you want to make sure the person or company
who writes your application has written previous cannabis state applications. This is not the time to give a lawyer or accountant friend, ex-DEA agent, or a retired police chief the chance to learn how to write a cannabis application. Remember, you may only get one chance at a cannabis license and the state regulatory agencies are not very forgiving when it comes to incomplete or poorly written cannabis applications.
So make sure your cannabis application is the best it can be and look for a professional who specializes in this type of application writing.
I wish you the best of luck in this new and exciting industry.
Watch this YouTube video of Tony Gallo from Sapphire Protection speaking about security at CannaStock on September 26, 2014.
Tony Gallo is the Senior Director of Sapphire Protection (www.sapphireprotection.com) with over 30 years in the Loss Prevention, Audit, Safety, and Risk/Emergency Management fields. Tony has a Bachelor of Science degree in Criminal Justice from New Jersey City University and is a member of Americans for Safe Access and National Cannabis Industry Association. Tony is considered one of the leading authorities in cannabis and financial loan service, retail loss prevention, and security. Contact Tony at tony@sapphireprotection.com and follow him on Twitter at @SapphireProtect.
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Carol Ruiz is co-founder and Partner of Higher Ground PR and Marketing. Janitor, construction crew clean up, waitress, documentary filmmaker, adjunct professor… just a few of the paths Carol Ruiz walked before finally finding what she would do for the rest of her life.
In recent days, and for the second time in 2018, the state-legal cannabis industry is abuzz over a new memo issued by Attorney General Sessions. Having revoked the Cole Memo in a January memo, the Attorney General’s latest memo addresses the use of capital punishment in drug cases. Notably, he urges federal prosecutors to consider the death penalty in drug cases—including in circumstances that facially could include the operation of large-scale state-legal marijuana businesses regardless of compliance with local rules. 
Second
Michael Cooper is the co-founder and managing member of 
But before you buy your cannabis equipment and hire a staff, you will first need for your state to give you a license. In order to get this license, you will need to apply to the state for review and approval. Your application can range from 300 to 2,000 pages and will cover a wide range of operational programs, including a well-defined security plan.