Meet The Team: Michelle Rutter Friberg – Deputy Director of Government Relations
by Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations
I grew up in rural King George County, Virginia, where I lived until I went to college. Let me just say: if you had asked me in high school where I saw my career going, I would not have guessed the cannabis industry! But, it turns out life had other plans for me.
When I began my time at James Madison University (go Dukes!), my major was undeclared. As time went on, I decided to study Political Science with a minor in History. I learned about our government, political theory, lobbying, and focused primarily on domestic politics. Working on all those papers and assignments for class during my undergraduate studies was where my knowledge of cannabis policy began.
When I was told one day that I could choose any topic to do a research project in one of my PoliSci classes, I somehow came across cannabis. It seemed too easy to write about — you’re telling me this drug is Schedule I but has never killed anyone? But from then on, every time I got to choose a topic, it was cannabis, so I began learning more and more. By the time I graduated, I had a decent understanding of the history behind prohibition, but my mind had turned to the same question everyone I knew was having: what was I going to do now that I had graduated? At the time, the Great Recession had unemployment close to 10%, so I did what many college-aged kids do: spent a month traveling around western Europe! Side note, my favorite city that I visited on that trip was Amsterdam, but not just because of the accessibility to cannabis!
When I came home, it was time to find a job. Eventually, I was lucky enough to be offered a job at a government affairs company in Alexandria, Virginia, where I researched state and local regulations for various clients. After a little more than a year, one of my coworkers mentioned in passing that a gentleman from the cannabis industry was coming in the next day to talk about our services. Before I could stop myself, I asked if I could sit in on the meeting. Lucky for me, they said yes, and that’s where the story of my career in cannabis began.
The gentleman who came in was (and still is!) NCIA’s Director of Government Relations, Mike Correia. While the company I worked for pitched him on their services, all I could focus on was Mike who elaborated on the incredible work NCIA was doing, about how he was a one-man government relations team and working from home. All I heard was: this guy is going to need to hire someone, and I knew it had to be me! After talking to my boss and getting his blessing to reach out to Mike, we set up a time to grab a drink and talk more about the industry. Lucky for me, Mike and I were like old friends catching up, and though NCIA didn’t have the budget at the time to hire another government relations staffer, he said he would keep me in mind. About six months later, NCIA was ready to expand the D.C. team and I applied for the job of government relations coordinator. Words can’t explain to you how happy I was when I received the offer to join NCIA’s team in October 2014.
A lot has happened since I was hired almost six years ago. Nine more states have elected to implement adult-use cannabis programs, and many others have opted to allow for medical marijuana or CBD. The way I was received on Capitol Hill with chuckles about “munchies” or “weed” are long gone, as NCIA and the cannabis industry are now received like any other business sector in D.C. We passed appropriations amendments in both chambers, planned many lobby days for our members, and passed the SAFE Banking Act out of the House of Representatives, just to name a few accomplishments. I went from government relations coordinator, to government relations manager, and worked hard to recently become NCIA’s deputy director of government relations. Not only that, but our government relations team has grown, and what was once just Mike, then Mike and I, has now become Mike, Michelle, and Maddy. The “3Ms” as we are often called are my best friends.
I remember thinking when I started with NCIA: what am I supposed to do now that I’ve gotten my dream job? Now, all these years later, I can tell you: I’m just getting started.
Member Blog: How to Launch Online Ordering and Dispensary Procedures During 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.
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.
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.
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.
Committees And Coalitions: Legislative Update On The SAFE Banking Act
by Michelle Rutter Friberg, Deputy Director of Government Relations
Photo By CannabisCamera.com
While you may not have seen or heard much news recently about the SAFE Banking Act (H.R. 2215, S. 1152), NCIA has been hard at work behind the scenes gathering intel, lobbying offices, and educating lawmakers and their staff. The bill is currently stalled in the Senate, however, there have been many discussions between lawmakers, committee staff, and advocates to encourage the legislation’s swift passage through the chamber. This week, let’s recap where the bill stands currently and what we’re doing to get the bill to the next step in the legislative process.
In September, the SAFE Banking Act (H.R. 2215) became the first piece of cannabis reform legislation to ever pass out of the United States House of Representatives by an astounding bipartisan vote of 321-103. The first iteration of the bill, named the Marijuana Businesses Access to Banking Act, was introduced to the 113th Congress back in 2013 and has made a long journey to get to this point in the legislative process.
After the SAFE Banking Act passed the House, its journey continued in the more conservative, Republican-controlled Senate. NCIA and other advocates. Then, just before Christmas, Senate Banking Committee Chairman Mike Crapo (R-ID) issued a press release detailing his opposition to cannabis policy reform — including the SAFE Banking Act as it’s currently written. In the release, Chairman Crapo said,
“I remain firmly opposed to efforts to legalize marijuana on the federal level, and I am opposed to legalization in the State of Idaho. I also do not support the SAFE Banking Act that passed in the House of Representatives. Significant concerns remain that the SAFE Banking Act does not address the high level potency of marijuana, marketing tactics to children, lack of research on marijuana’s effects, and the need to prevent bad actors and cartels from using the banks to disguise ill-gotten cash to launder money into the financial system.”
NCIA is continuing to work with Sen. Crapo, congressional and committee staff, coalition partners, and the bill’s cosponsors to ensure that all parties have the materials and information that they need in order to solve this pressing public safety issue and pass the SAFE Banking Act.
But, that’s not all we’re working on for SAFE Banking! In addition, NCIA and a coalition of more than 30 national and state cannabis industry organizations sent a letter last month to Sen. Crapo urging him to advance the House-approved version of a bill aimed at addressing the state-legal cannabis industry’s lack of access to banking and other financial services.
NCIA has collected over a thousand signatures from cannabis and ancillary businesses on a similar letter that is on its way to Sen. Crapo’s office this week. Lastly, but perhaps most importantly, NCIA is currently in the process of taking a deep-dive into Sen. Crapo’s concerns that he listed in December, and replying to them line-by-line to ensure that he and his staff have all of the relevant information necessary to pass this bill out of Committee and send it to the Senate Floor.
We will continue working on your behalf in D.C., but here are a few ways you can help, too:
If your business is not yet a member of NCIA, the best way you can help this effort is by joining today so that our team in D.C. can start the year off stronger than ever in our efforts to move sensible banking reform through the Senate and to the president’s desk.
Make sure you’ve signed up to attend one of our upcoming Cannabis Caucuses, happening nationwide in March, where you can get updated on the latest with the SAFE Banking Act and all of our other congressional priorities.
Mark your calendar for May 19-21 for NCIA’s 10th Annual Cannabis Industry Lobby Days! Registration will be opening soon, so keep an eye out for more information on how you can join us in Washington, D.C. to make 2020 the biggest year yet for cannabis policy reform!
While we still have work to do in the Senate, the NCIA team is excited about the opportunities ahead for 2020! Thank you to the nearly 2,000 member businesses of NCIA that help make this critical work possible.
#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.
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!
There’s been a lot of positive press lately about the success of the cannabis industry in Nevada, and with good reason. The cannabis industry contributed more than $110 million dollars in FY19 to state coffers and is poised to overtake the mining industry in annual tax contributions; all of this in just its second year of operations. But while the tax-generating retail industry continues to steam ahead, much of the business and opportunity in the balance of the industry remains on hold (since early October). The responsible moratorium has largely been erased from public awareness by the intervening holiday season and the ongoing success of tax collections over projections.
Unfortunately, while this suspension was necessary in light of the surrounding circumstances, its indefinite duration has created market instability at a time when cannabis-friendly markets are competing for business and tax dollars. Regrettably, this uncertainty has made Nevada look more like the nearly paralyzed California market. The time has come to complete the necessary work, end this moratorium and let the critical behind-the-scenes elements of our nationally leading industry get back to work.
For those that don’t recall, the present moratorium was announced by the Nevada Department of Taxation on October 17, 2019 following the recommendations of a task force initiated by the Governor. The launch of the task force was in response to two scandals: one involving the awarding of retail licenses earlier in the year and the second being the discovery that the foreign nationals identified in a national campaign finance scandal (involving former New York Mayor Rudy Giuliani), had sought to invest in and seek influence over the local cannabis industry.
Few can argue the need for a regulatory pause given the state of affairs last October, and I believe the Governor’s response was the single most effective way to stifle inappropriate corporate activity. By the simple administrative step of freezing all pending and future license transfers, the state was able to get the lawyers involved in these transactions to shut them down. The final step in almost any merger or acquisition transaction became temporarily unlawful. There’s no need for a police force when every lawyer in the industry can be deputized.
This Friday will mark ninety days since the moratorium was put into place, and would be a fine time to release this de facto suspension of all mergers, acquisitions, sales, financing, etc. After a decade and a half of practice in transactional law, I can tell you that the “invisible hand” of the market that most of us rely upon to guide capitalism isn’t invisible to the people in the transactional trenches. If the machinery behind the scenes is seized up for too long, inevitably, even the very of the supply chain (i.e. retail) will suffer.
Many capital rich companies, who only recently became comfortable with the cannabis space, are looking to deploy resources into the cannabis industry. The mechanisms to do so, and to create the jobs and economic development desired by the state and its taxpayers, are restricted to mergers, acquisitions and equity investment. Capital markets are not static. They are as dynamic as the cultures they serve and forcing them all to the sidelines for an extended period owing to the misdeeds of a small number of them, is painting with too broad a brush. It is perhaps due to the recent legality of the cannabis industry and its vestigial stigma that a transactional moratorium has been tolerated for as long as it has. It is difficult to imagine a comparable capital markets freeze in any other industry.
In the ten years I have called Las Vegas home, I have watched our city and, indeed, our state, transform from side show to main event – as we are no longer content to ride shotgun to California’s success. We Nevadans have proven capable of, and even better equipped for, leading in multiple industries, including cannabis.
To that end, we are, or certainly should be, capable of completing an “extended review” of the license transfer process as well as developing a “more thorough and appropriate vetting process” in ninety days. Ostensibly, freezing all pending transfers was undertaken to ensure that those aspiring licensees were subject to such “more thorough” process. It is difficult to imagine, however, how this process could presently be incomplete. If anything, as the state is writing the rules as it goes, it makes sense to at least unlock the “pending” transfers and provide some guidance as to the expected timeline for future transfer approvals.
We spent most of 2019 advising clients to avoid cannabis transactions in California, as the regulatory structure there is widely agreed to be in disarray. During most of that time, we were able to credibly suggest Nevada as an alternative market, free from such chaos, and capable of sustaining robust merger and acquisition activity without issue. However, as large and popular adult-use markets (e.g. Chicago, IL; Detroit, MI) open and expand, and agriculturally experienced markets expand into hemp and CBD production, we are left to advising clients that their dollars are better spent elsewhere.
However, there is still time to start the new year and new decade with a local cannabis market that is looking to lead and provide prototypical regulatory and compliance guidance, as it was prior to last October. If we don’t, we can’t expect other cannabis-legal states or businesses choosing between them to wait for us to figure it out. And when federal legalization undoubtedly arrives, the loss of time in developing the Nevada market will no longer be treated trivially.
Glenn H. Truitt, Esq. is the Managing Partner of Ideal Business Partners, a boutique multi-disciplinary professional firm focusing on serving businesses in the cannabis, hemp and CBD spaces. He is a graduate of the U.S. Naval Academy and Stanford Law School, is licensed to practice in California and Nevada and has been practicing for 15 years.
Committee Blog: What Should You Do If Your Customer Won’t Pay You?
When I first came into the market in 2016 almost every company told me that they don’t have collection issues, they either get paid COD or get paid “on time.” Well, as the recent reports about a dispensary stopping payments to vendors has hit the press, I thought it would be a perfect time to talk about an issue that has largely been ignored in the cannabis market: collections, and what you should do if you are not getting paid?
Almost every company I have spoken to, whether they are a grower, manufacturer, or service provider are extending some type of credit to some of their customers. With more companies in the cannabis space now extending credit to their customers, delinquent payments are on the rise and the management of your new “accounts receivable” can have a major impact on your cash flow.
Most of this credit extended today in the cannabis market is what we call “friendship credit,” credit that is extended to a customer who you have developed a personal relationship with and where no credit analysis was performed. Friendship credit may have worked in the past, but the rules are changing and as you may be experiencing first hand, many of these customers are not paying you on time and some are not paying you at all. If this is happening to you, what should you do?
The following is a common-sense approach to the problem of determining whether a customer has become a collection problem where you may need outside help. Customers that have a cash flow problem must choose which vendors they will continue to satisfy and which vendors they will not. If a company has insufficient cash on hand to pay all their vendors, some are not going to get paid on time. This can be a one-time problem, or it can be an endemic problem and if you don’t act promptly it may cost you.
The Customer is More Than 30 Days Past Due
Your customer always paid on a timely basis, you have transitioned them from paying you COD to credit terms and now they are 30 days past due. They answer your calls but promises for payments and clean up the past due balance are not met. Chances are you have a problem and depending on how old the debt gets, turning them over to a 3rd party collection agency may be the way to go and save you a customer. Yes, you read it correctly, save you a customer and get you paid, that is the goal of a collection agency.
The Customer is Not Returning Your Calls and Re-Ordering
Your customer is past due and ducking you. If they won’t talk to you after repeated attempts to reach them, their debt is 30-60 days past dues and getting older and they are not trying to re-order and pay down the old balance, a collection agency may be your only solution. Collection agencies have trained recovery professionals that focus on working with these types of accounts. A collection agency experiences this problem as a normal course of their daily activity and they are experts at getting your customer to the table because it’s what they do for a living.
The Customer Has Stopped Buying
If the customer has stopped buying and owes you money, even if it’s not past due you need to be on the alert. For whatever reason, if the account no longer needs you, they don’t have a reason to be prompt. If they go 60 days past due, you are probably going to need outside help to collect your money.
You Receive Negative Information on the Customer from Other Suppliers
Your customer is past due, and you receive some negative information on them from other suppliers who are also selling to them. When a company gets into trouble financially, they start allocating their available cash, the key important vendors may not see a problem, but the secondary vendors will. For example, if the account is a dispensary they need to have flower and concentrates on the shelf and therefore those suppliers will get paid first. But if you manufacture infused THC/CDB sports drinks that do not sell as well you might not get paid on time if the dispensary has cash flow issues. If you have relationships with other suppliers leverage them to find out what is going on.
Final Thoughts
If you are extending credit you will need to implement a collection policy that details how to manage and collect from a delinquent customer as well as what is your point of no return is where you need to pull the trigger and place the customer with a 3rd party collection agency. The warning signs listed above are usually evident during your internal collection efforts and the sooner you recognize them the better. Prompt action will save you money. If the account is behaving erratically, you should turn them over to a 3rd party collection agency as they trigger the 60-90 days past due signal because probably things are not going to get better, only worse.
Sam Fensterstock is the SVP of Business Development at AG Adjustments (AGA), a 48 yr. old provider of 3rd party commercial collection services where he oversees sales, marketing and revenue. Sam has spent his entire business career as an entrepreneur and senior executive in the commercial credit & collection space. Sam been a founder and played a key role in the dynamic growth of several leading niche commercial credit risk management companies including F&D Reports, CreditRiskMonitor and PredictiveMetrics (sold to SunGard/FIS in 2011) and AGA. Sam is widely considered a vendor expert in the order to cash and credit and collection process. AGA is the only national collection agency focusing in the cannabis market Sam has been an active member of the NCIA’s Banking & Finance Committee since 2017. Sam is the author of the NCIA published White Papers “The Future of the Accounts Receivable & Credit Function in the Emerging Cannabis Market” and “Implementing an Initial Trade Credit Policy for an Emerging Cannabis Related Business” as well has authored several articles on the topic of trade credit and collections in the cannabis market.
Member Blog: Condensate Recapture for Cannabis Cultivation Facilities – Making Informed Decisions to Save Resources and Improve Efficiency
Condensate capture for reuse is an intriguing new application within the controlled environment horticulture space. Addressing both environmental impacts and regulatory requirements, capturing and reusing condensate has many attractive benefits. However, several key questions have appeared surrounding the topic of condensate water capture and reuse applications that have slowed its adaptation in many facilities. In this article, we discuss common questions and concerns associated with condensate reuse and how each may be addressed with adequate, customized treatment processes.
Condensate water is generated by a number of processes within a controlled environment agriculture facility. Most commonly, dehumidification and HVAC systems are the primary sources of condensate water. The source of water and collection system plays a significant role in condensate water quality and associated concerns when considering reuse.
Why is collecting and reusing condensate water a good option?
Recycling available water streams reduces the amount of fresh water required and offsets associated costs.
Recycling minimizes discharges and waste. Coming regulations will require extensive discharge limits.
With adequate monitoring and treatment, risks may be greatly reduced, maximizing benefit.
Contamination – Don’t Let One Bad Apple Ruin the Bunch
In general, condensate water is low in Total Dissolved Solids (TDS)/Conductivity and is generally very clean. pH is typically low as carbon dioxide readily absorbs into solution (pH 5.5-6.5 range). Contaminates are easily introduced based on what the water contacts during collection and distribution. Volatile Organic Compounds (VOCs) and other organics can be absorbed and provide “food” for microbial proliferation – especially if the condensate is pooled and stored for extended periods. Metals leaching from dehumidification equipment and/or from dust/air pollutants also may accumulate. Identifying and managing emerging contaminates is crucial to successfully mitigate risk and maximize value when reusing condensate water.
Microbes and Organics
By themselves, most organics potentially found in condensate water pose little threat. However, organic (carbon-based) pesticides, foliar sprays, etc. have the potential to accumulate in exposed condensate water and could lead to downstream issues. Organics also provide a potential carbon source for various microbial populations to proliferate. This can create biosecurity challenges, plant disease and challenge existing water treatment processes. Microbes are ubiquitous in nature and although pathogens are presumed to make up less than 1% of the known microbial kingdom, contamination remains a threat. Airborne bacteria, viruses and fungal spores can be introduced to a condensate water system through its condenser plates. Microbial proliferation and the formation of biofilms on wetted surfaces downstream of dehumidification equipment can result in elevated levels of total and pathogenic microbes.
Heavy Metals
Heavy metals including lead, zinc, aluminum, and copper may be a concern if leaching from dehumidification equipment occurs. Soldered joints in copper tubing, for example, may introduce lead to condensate water. In that case, mechanical joints/brazed joints would be preferred. Aluminum, copper, and zinc may be stripped directly from metal surfaces as part of generalized corrosion. Even at relatively low levels, some metals, dissolved contaminates and other corrosion byproducts can bioaccumulate in plants resulting in compounded issues, including phytotoxic effects.
Water Treatment & Management
In many situations, the use of recaptured condensate water is a viable option to supplement make-up water demand and reduce waste discharge. Treatment prior to reuse is recommended to condition the condensate water to ensure water system stability over time and to prevent potential treatment and operational challenges that could otherwise arise.
Available treatment processes include Advanced Oxidation Process (AOP) gas and UV for disinfection, adsorptive media for dissolved organics and various other filtration processes for metals and other contaminate removal. The extent and type of treatment varies based on specific water challenges and end goals.
Baseline and routine subsequent water testing and monitoring is key to maintain a proactive approach to water management. Integrating smart water management programs limits waste, improves logistics, saves money, protects the environment and allows for current and emerging regulatory compliance. Equally important is choosing the right technical partner to help develop and implement your smart water management program.
Taylor Robinson is the Research & Development Manager and Chief Chemist for Silver Bullet Water Treatment with expertise in molecular and cell biology, general water chemistry, microbiology, and industrial (oil and gas) water treatment and reuse processes/chemistries. For the past 4 years, Taylor has led, conceptualized, organized, and completed numerous Silver Bullet research and development projects related to water treatment for the livestock, cooling water, horticulture, aquaculture and data center industries. Taylor joined Silver Bullet in 2016 and has been a key contributor to the advancements in the company’s technology and research base.
With over 15 years’ experience, Kyle Lisabeth has been focused on improving water management programs across multiple industries, with a central focus of treating water for reuse applications. Kyle attended the University of Texas – Austin, and upon graduation with a BS in Biology and Environmental Sciences, gained years of international water management experience in both North and South America. Since establishing Silver Bullet’s Horticulture Division, Kyle has exponentially grown the business unit’s install base and cultivated a nationally known water treatment brand for many controlled environment agriculture applications, including cannabis.
Take The Survey By Friday: What Educational Content Does Our Industry Need?
NCIA is exploring a partnership with the Community College of Denver to deliver educational content to their students and the industry.
To get a better understanding of the industry’s education needs, we’ve developed a survey to gauge them. This data will also help us enhance the content we’re delivering during conferences, webinars, and other offerings in development.
On October 29, 2019, the USDA released regulations establishing a domestic hemp production program, paving the way for hemp cultivation on an industrial scale in 2020. While the potential benefits of a robust hemp industry in California are exciting, large scale industrial hemp cultivation increases the risk of cross-pollination for hemp and cannabis growers, which may significantly impact the value of both crops.
Cannabis sativa, the plant used in both hemp and cannabis production, is a dioecious species, meaning that male and female flowers are borne on separate plants. Cannabinoids, including THC and CBD, are more concentrated in the female flower than in the male flower. Therefore, cannabis or hemp growers who desire a crop with a high yield and potency of either THC or CBD will typically use feminized seeds or clones and will weed out male plants if they appear. Growers of industrial hemp produced for seed or for fiber, however, are not concerned with producing potent cannabinoids and therefore will generally grow both male and female plants.
Cross-pollination between female and male plants can cause problems, such as seed production, lower crop yields, and altered THC or CBD content of the flowers that are produced. This can devastate the value of crops grown for their THC or CBD content. Moreover, if hemp exceeds the 0.3% THC concentration threshold allowed under the federal regulations, it must be destroyed.
Unfortunately, cannabis pollination can occur over large distances depending on the concentration of plants and weather conditions. Industry experts recommend a minimum distance of ten miles between outdoor growing operations, but research shows it is possible for cannabis pollen to travel much further. Therefore, cross-pollination is possible even if a neighboring farm is miles away. This dynamic poses a huge problem to the young industry.
At this point, there are few regulations in California designed to prevent cross-pollination. Several counties enacted temporary moratoriums on the production of hemp, primarily based on the USDA’s inaction. In those counties, cross-pollination has not been a problem since cultivation was not allowed in the first place. Now that the USDA has issued regulations governing the hemp industry generally, counties will likely lift these temporary moratoriums. But since the USDA regulations are silent as to the distance between hemp and cannabis operations, cross-pollination will almost certainly occur and will likely result in litigation in the near future. Indeed, cross-pollination has already caused litigation in other states. For example, lawsuits related to cross-pollination have already commenced in Oregon. In Jack Hempcine LLC v. Leo Mulkey Inc., et. al., a hemp grower alleges that cross-pollination by male plants on the property of several nearby growing operations raised the THC levels of the Plaintiff’s female plants, rendering his entire crop unmarketable. The grower who brought that action alleges damages exceeding $8,000,000 in lost crop value.
There are several legal theories available to growers seeking to recover damages caused by cross-pollination of their crop by a nearby hemp or cannabis operation, including negligence, trespass, nuisance, strict liability, and interference with prospective economic advantage. If your crop is or was negatively affected by cross-pollination or another grower alleged that you have damaged their crops via cross-pollination, you should contact counsel as soon as possible.
Ryan McGuire is an attorney at HK Cannabis Law, a practice group of Huguenin Kahn LLP, a full-service law firm representing clients throughout California and beyond. Ryan has years of experience litigating a broad range of legal actions, including personal injury, employment, contractual disputes, and construction defect claims. Ryan also has deep ties to California’s agricultural community, and has successfully represented growers, packers, and distributors. Ryan’s knowledge and experience are valuable assets for clients involved all aspects of cannabis production from seed to sale. Established to provide legal representation and counsel in the emerging field of cannabis law, HK Cannabis Law stands ready to serve clients at every stage of the cannabis business cycle, from business entity formation, real estate acquisition, land use, contracts, business transactions, regulatory compliance, licensing and permitting, enforcement defense and, should it ever be necessary, legal representation in both civil and criminal trials and appeals.
Congress Holds First Cannabis Policy Reform Hearing of 2020 This Week
by Morgan Fox, NCIA’s Director of Media Relations
This week, Congress will hit the ground running by holding the first cannabis policy reform hearing of 2020 only weeks into the new session. The hearing, entitled “Cannabis Policies for the New Decade,” will be held by the House Energy Subcommittee on Health on Wednesday.
This hearing is expected to explore the barriers to cannabis research, the health impacts of current federal cannabis policies and the implications of reform, as well as several pieces of cannabis-related legislation including the Marijuana Opportunity, Expungement, and Reinvestment (MORE) Act, the Marijuana Freedom and Opportunity Act, the Medical Cannabis Research Act of 2019, the Medical Marijuana Research Act of 2019, the Legitimate Use of Medicinal Marijuana Act, and the Veterans Medical Marijuana Safe Harbor Act.
This hearing is an excellent sign that Congress is willing to continue the groundbreaking progress it made last year.
Unfortunately, all the witnesses for the hearing are representatives of government agencies that have not been overly receptive to ending cannabis prohibition, namely the Drug Enforcement Administration, the Food and Drug Administration, and the National Institute on Drug Abuse. But while we do not expect these witnesses to be cheerleaders for meaningful cannabis policy reform, there will no doubt be many tough questions asked by lawmakers who understand the importance of changing our nation’s outdated and harmful federal laws.
The hearing also presents an opportunity to help inform members of the subcommittee and others in Congress about the facts on this issue, as well as to show them that the cannabis industry is united in its common goal of removing cannabis from the schedule of controlled substances in a way that helps address the harms caused by prohibition, and let them know we are committed to working with them to address any concerns. A coalition of cannabis industry groups will be submitting a joint letter to the subcommittee, which will be available later this week, outlining these areas of agreement. NCIA will also be submitting written testimony for the congressional record.
You can watch the hearing here and we will be following up afterward with more information as well as responses, so stay tuned!
Committee Blog: How NCIA’s Banking & Financial Services Committee Can Help You In 2020
As we begin the new year, the NCIA Banking and Financial Service Committee is joining the trend of starting something new for 2020. We are launching a blog series, the very words that you’re reading now, to help the cannabis industry when it comes to banking and payments. Here, you’ll find new content every month. Our goal is to give you actionable information based on current markets so that your business can grow and thrive throughout the year.
In Missouri, the state has issued 192 retail licenses, and 80 licenses for cultivation. To serve the industry, there are numerous banks and credit unions who are actively working with cannabis businesses to offer transparent banking options.
Utah will be issuing 14 retail licenses and 8 cultivation licenses, with businesses expected to start operating in March of this year. There is a financial institution in the state that is ready to bank the cannabis industry, helping your business with compliant financial services.
Finally, the committee has built relationships with additional financial institutions in California, giving even more options for cannabis businesses that need banking solutions. Whether your business is based in Missouri, Utah, California, or any other state with a legal cannabis market, NCIA’s Banking & Financial Services Committee can help provide information that may help you obtain banking services. Please get in touch with usif you need help, and we can make connections that could help.
Considering the changes to legislation in states across the country, as well as the impressive growth of the cannabis industry in recent years, we’d like to take this opportunity to welcome both newcomers and old-timers in this industry. Our community is vibrant and collaborative, with a focus on helping each other grow.
Unfortunately, there are always operators who try to work around the rules instead of following them. As a result, it’s important that we remind all our members about the dangers of breaking the laws or rules regarding cannabis banking and payments. We want to make sure that everyone knows the dangers that can be associated with the few transaction methods that are available to the industry.
Debit and credit card payments for cannabis are not allowed by the branded card networks. What does this mean? VISA and MasterCard do not want anyone paying, or receiving payment, for cannabis on their rails. While not technically illegal, circumventing their rules can lead to some dire consequences, including getting blacklisted and unable to get a merchant account in the future, even when cannabis becomes federally legal.
Instead of trying to work outside the system, focus on compliance and sustainability. How can you ensure that your business thrives for years to come? Build a solution that is legal now and will continue to operate legally as the federal laws expand. Work with banking and payment partners who understand your business and help it grow. Ensure that you only build partnerships with reliable, trustworthy institutions that improve your brand’s viability and performance.
As always, remember that NCIA’s Banking & Finance Committee is here to help you. Our goals are to educate and support operators in this industry across the country. If you’re worried that your banking or financial services solutions might not be fully trustworthy or compliant, don’t stay silent. Make full use of this committee by utilizing all our resources and connections to help your business thrive. Because when your business does well, the association continues to grow and improve, too.
In his role as Hypur’s Chief Revenue Officer, Tyler leverages his extensive experience in building brands, managing key relationships and strategic partnerships. Tyler has been at the forefront of Hypur’s expansion efforts for over five years and touches Financial Institutions, Government Officials, Regulatory Bodies and the State Legal Cannabis industry.
As a result, he possesses an intricate knowledge of the Banking and Regulatory climate, key industry influencers, industry dynamics, and market history. He has also become a key contact for media outlets, analytics companies, industry consultants and investment firms searching for reliable, accurate sources of industry information.
Tyler’s contacts and relationships in the US State Legal cannabis industry are unparalleled.
As a result of his influential value, he was selected to be Chairman of the National Cannabis Industry Association Banking and Financial Services Committee. He is also a member of the Forbes Business Development Council, frequently publishing articles about the banking and payment environment in the cannabis industry. Tyler founded and managed a large beverage company prior to joining the Hypur team and was a professional athlete in the New York Mets Organization.
2019 was an incredible year of growth for the cannabis industry; mergers and acquisitions, multi-state expansion, new state licensing, and an explosion of new jobs created. Operationally, more businesses began adopting best practices from the retail and hospitality industries and implemented technology systems to connect all facets of business for stronger insights. There have been focused efforts on hiring, engagement, and training to improve employee retention. Plus, the momentum for widespread acceptance of cannabis legalization is truly unstoppable.
These favorable advancements haven’t come without a variety of challenges, including continued banking access stalls, compliance hurdles, and environmental tragedies. While most legal markets in the nation are struggling to keep up with the demand for qualified talent, select California enterprises laid off an average of 30% of their workforce due to numerous obstacles. Most notably, the vaping crisis shed light on the need forconsistent regulation and testing. Additionally, lack of access to capital has significantly slowed down business growth nationwide.
According to a survey Wurk sent to leading enterprise U.S. cannabis businesses, the largest human resource challenge in 2019 was managing rapid growth and scaling the workforce to meet demand. Managers felt pressure to ensure hiring plans were strategic, yet could meet the constant change of the industry, and many learned that employee turnover was directly related to a lack of training and effective performance management practices.
2019 tested the resiliency, patience, and commitment of many in the industry. As 2020 begins, consider this: this is a passionate community that has the experience, determination and gumption to persevere no matter the roadblocks. As pioneers in cannabis HR, leaders are responsible for providing the right support and resources to the people of the industry, so momentum continues.
In 2020, recognize these 9 trends in cannabis Human Capital Management:
Employee Training & Performance Management
While more than half of the US has some form of cannabis legislation in place, the industry still lacks a standardized education and training program for employees in each vertical. Compliance and risk management programs have been developed by vendors like Cannabis Trainers, and states such as Massachusetts are mandating that operators take part in these sessions. A portion of marijuana businesses have created internal training programs and will invite producers in-house to offer product education to budtenders.
Although there’s been progress in this category, the industry is still a long way away from providing consistent, reliable education to employees. In the coming year, HR leaders will have self-developed or outsourced courses on compliance, at a minimum. More and more operations will expand their employee development to include product and plant specifics, responsible selling best practices, and even positive psychology coaching.
Reducing employee turnover will remain a focus for cannabis HR leaders in 2020. Operators will take a fresh look at how performance management is handled and whether it aligns with company culture. One approach to replace the annual review will be “continuous performance management,” where frequent one-on-ones are scheduled to improve communication, address issues fast, and ensure employees are engaged in the organization. HRIS platforms can support these conversations with people data so managers can combine the human interaction with trending evidence in order to spot at-risk employees before they jump ship.
Employee Experience
People are a business’s largest asset, which means not only can they be the most substantial expense, they are also the biggest revenue generator. The Employee Experience (what people encounter, observe or feel over the course of their employee journey) will begin to be a part of cannabis HR strategy into the new year. By gathering insights about this unique workforce through surveys, interviews, and conversational documentation, cannabis businesses will start to define an Employee Experience that parallels the company’s mission, vision, and values.
Forbes recently included “tending” people as an HR trend to be aware of in 2020. The idea is to cultivate employees and support their growth, rather than manage them. This intentional relationship-building practice evokes a sense of community and wellbeing. Harvard Business Review notes that tending goes a long way in mitigating the “workers as machines” phenomenon. If crucial talent feels they are just a cog in the Multi-State Operator machine or an unseen hourly inventory manager, the likelihood of them voluntarily departing the business will rise.
Standardization vs Customization
Recognition must be given to leadership in 2019 for leaning on other industries for processes to effectively manage a mostly hourly workforce. While cannabis businesses are still in start-up mode, there are labor tasks and procedures that mirror those in the fast food, hospitality, and agricultural segments that can help shape standards. There’s no need to reinvent the wheel, but it’s obvious that the intricacies involved with the seed-to-sale process require customization.
In 2020, HR will balance enforcing best practices and the need for agile, tailored decision-making. When it comes to talent acquisition, for example, a hiring manager may draft a job description that includes vital soft skills, like reliability, communication skills, organization, adaptability, and leadership. In new cannabis markets, following a cookie-cutter model won’t generate the talent pool needed to build a business.
Being innovative with tried and true methods will allow leadership to solve bottlenecks today, not in the future.
Data-Driven Decision Making
According to Deloitte’s 2018 Human Capital Trends report, 85% of companies see people analytics as a high priority, but only 42% believe they are either ‘very ready’ or ‘ready’ to meet expectations. Over the years, cannabis executives have taken action to implement a technology foundation that supports compliance, streamlines processes, and reduces cost. Yet, there is still a lot of runway left to cover.
The focus will shift from technology as a ‘nice to have’ to technology as a major transformational driver in the years to come. Organizations will recognize the benefit of all-in-one solutions that enable better business decisions based on data. Human Resources will remain on budget by comparing actual spend per department, location, and cost center to predicted payroll spend. Managers will rely on people analytics to identify what elements impact turnover and employee engagement. Even in the most fast-paced, ever-changing industry, HR professionals will have the ability to predict future trends for talent, finance, and workforce planning.
Managing Rapid Growth
Massive expansion has created immense pressure for all positions in the cannabis vertical, notably for HR professionals. With most companies growing through M&A activity, not organically, the structure of business is evolving faster than most can realistically manage. This surge will only continue in 2020, demanding the expertise of the HR department to effectively discern new opportunities and build the workforce of the future.
According to the PwC CEO survey, 77% of CEOs believe the biggest threat to their business is the lack of availability of key skills. With CEOs so concerned about talent, cannabis HR managers will shift focus to increasing productivity of their existing workforce as opposed to hiring additional staff. Data will help inform HR professionals on who the top performers are and what conditions are supporting their success.
Outsourced HR Solutions
Employee relationship management should be made a priority for every business, but in-house cannabis human resources may not be an option for all. Small businesses may wait until they reach 40 or even 75 employees before bringing on a full-time HR manager. Constantly evolving labor laws and the risks involved with cannabis payroll will drive some business owners to outsource HR services to cannabis-specific partners.
From employment taxes to employee benefits to the Fair Labor Standards Act (FLSA), there are many aspects of workforce management that owners may not have the resources or experience to maintain. In an industry already strapped for financial support, one mistake in adhering to the work and pay rules for a specific municipality can amount to a hefty fine. The risk involved with managing cannabis people is high and this liability will drive licensees to depend on cannabis-friendly HR and Payroll partners.
Diversity and Inclusion
Key states had strict requirements surrounding diversity initiatives in the cannabis application process in 2019 and this focus will only grow in the decade to come. HR departments will develop stronger D&I plans with innovative ways to recruit, to communicate the importance of unique perspectives and to support peers across the organization.
Sadly, the industry saw a decline in the number of women execs at the end of the decade. Vangst found that of the 38.5% of employees that self-identified as females in the industry, only 17.6% of these women held a “Director” or “Executive” role. This compares to 82.4% for self-identified males.
As momentum gains, the industry will continue to attract like-minded, experienced professionals from mainstream, big box corporations. This past year, KushCo Holdings appointed former Nestle and Cetera Financial Group HR Executive, Rhiana Barr, as their Chief People Officer and Harborside brought on a female HR leader from big pharma. This trend will progress as the industry continues to prove legitimacy through international acceptance and financial opportunity.
Corporate Social Responsibility
Giving back to the community has been a challenging push for cannabis businesses as many non-profit organizations and volunteer programs are still hesitant to partner with plant-touching operations. Thankfully, this trend is taking a turn in a positive direction. Take for example, Cresco Labs, who launched the SEED initiative in 2019 to “ensure that all members of our society have the skills, knowledge and opportunity to work in and own businesses in this industry.” Companies all over the nation are contributing to those most affected by the War on Drugs by donating to non-profits like Last Prisoner Project or collaborating on expungement events.
Human Resources will attract a wider talent pool and increase employee satisfaction in 2020 by providing thoughtful opportunities for employees to be involved in CSR efforts.
Wellness and Benefits Offerings
For years, marijuana businesses have had to worry about basic employee resources, like ensuring they have access to banking and can receive a direct deposit. Although this will remain a hurdle for many, more doors have begun to open for managers to offer benefits, and even 401(k). Insurance and 401(k) brokers that are transparently serving the industry are becoming more and more prevalent into the new year. While Section 280E hinders employers from offering a 401(k) match, some production-focused entities may be able to deduct contributions to their employee benefits plans, where dispensary entities may not be able to—even when they’re owned by the same parent company.
Partnering with cannabis-friendly brokers and financial advisors will only benefit HR professionals as these offerings are still difficult to obtain and execute.
They say a year in cannabis is like 7 dog years… The industry has made it this far, not without flaw and frustration, but certainly with grit and determination. Organizations have the strength to power through 2020 with a solid foundation, the right toolset, and the best people around.
Heather is an experienced marketing professional with a demonstrated history of work in cannabis technology and digital strategy. Skilled in customer relationship management, online marketing, immersive experience design and communications, Heather brings a unique combination of creative ideation and project management. As Director of Marketing for Wurk, the first workforce management company designed specifically for the cannabis industry, Heather develops key messaging to inform the market about effective human resource management and to support the advancement of the industry. With previous experience at MJ Freeway, the leading provider of seed-to-sale software solutions for marijuana businesses, Heather brings a unique understanding of cannabis chain of custody and the various challenges operators face in this highly regulated space. Heather earned a bachelor’s degree in communication design and marketing from Metropolitan State University.
Designed specifically for the cannabis industry, Wurk allows employers to protect and streamline their operations, while providing an environment where people are a priority every step of the way. The intuitive, all-in-one solution automates the most complicated and risk-prone processes associated with hiring, scheduling, and paying employees. Learn more at enjoywurk.com.
Committee Blog: Working With Your Local Government as a Cannabis Cultivator
The regulated cannabis industry is inextricably linked to politics, and all politics is local — so when trying to open and operate a cannabis business, you’re almost sure to need to work with local government in some way.
To help our members understand how to start these relationships right, the NCIA State Regulations Committee hosted a webinar on how to approach local government earlier this year. That focused on identifying your relevant local authorities, how to introduce yourself, and how to properly navigate those relationships.
Once you’ve figured out who to talk to and have gotten in touch with them, they’ll often have questions about the cannabis industry, and there is plenty of good information you can proactively share as well. To help NCIA members inform their local governments about the wide range of issues surrounding our industry, we’ll be diving even deeper with a series of blog posts.
We’ll be starting this series where the whole cannabis supply chain begins: cultivation. Future posts will touch on processing, retail, and more. Even though states categorize their licenses differently, with some issuing stand-alone cultivation licenses and others combining cultivation with processing (or sometimes issuing vertically integrated licenses, with retail too), we’ll be focusing in on the various operations individually.
ECONOMIC IMPACT
When elected officials hear about a new business wanting to open in their town or city, their first question is usually, “how many jobs will it bring?” Mayors, city and town councils, departments of economic development, and other government entities are often laser-focused on building up the local economy, so explaining how your business will help them towards that goal is integral to moving your project forward.
Lucky for them, cannabis cultivation is a very labor-intensive endeavor, and you’ll likely be hiring dozens of people to staff your facility. If you’re an experienced operator who knows exactly how many people you need to hire and in what roles, let your local government know! They’ll be interested to see the range of responsibilities and necessary experience, from entry-level trimmers to mid-career managers to botanists with a Ph.D. If you’re still figuring out your exact staffing plan, providing a range of possibilities will help them understand the scale of your project. Be sure to avoid pie-in-the-sky estimates that you’ll never be able to reach — in the long run, it’s always better to under-promise and over-deliver than to make it seem like you were pulling a bait-and-switch. Also do not forget to include all the contract jobs created by constructing or retrofitting your facility.
Beyond the sheer number of hires you’ll be making, it’s important to talk about the compensation and benefits that you’ll be providing to your employees. If you’re starting everyone above the state’s minimum wage — or better yet, starting everyone at a living wage (generally thought to be at least $15/hour) — highlight that! If you’re providing health insurance or other benefits to your hourly employees, let them know! Elected officials like to see companies doing better than the bare minimum, and love to see companies that do even more.
Your physical facility will also have an economic impact on the community that’s worth talking about. If you’re buying your building, you’ll be paying property taxes, and you can let your elected officials know just how much you’ll be contributing to the tax base. Mayors and councilors always love to see unused space being occupied, so if you’re making use of a vacant or neglected building, be sure to let them know. This goes double if you’ll be making improvements to the building that increase its value (and triple if you’re using a local construction company to make those improvements).
Finally, consider whether you will be providing any additional revenue to the local government. While some state cannabis laws do allow for local taxes, these typically apply to retail rather than cultivation. Massachusetts and some other states also make heavy use of “community host agreements,” or CHAs, where a business commits a percentage of its revenues to the local government for a limited period of time. If either of these applies to you, be sure to provide elected officials with the relevant parts of state law, and the specifics you’re willing to offer. If you plan to financially support any charities, provide details — and if you’d like some guidance on what local charities are doing the most good, just ask, since most officials would be happy to tell you some of their favorites.
PUBLIC SAFETY
Elected officials also care about public safety, but usually follow the lead of their police chief and fire chief, for whom safety is their one and only priority. It’s good to proactively highlight the ways your facility will improve public safety — if you’re installing outdoor security cameras or floodlights, those can protect your neighbors as well as yourself, and there have been multiple cases where cameras on a cannabis business have helped solve an unrelated crime.
It’s important to remember that police and fire chiefs are spread thin and need to know a little about a wide variety of topics. Unless there are already cannabis businesses in their town, they probably haven’t read the state security requirements to open a facility, so providing an overview of the state law can help demonstrate how tightly regulated you will be. Knowing that the state already has rules for waste disposal, product storage, and controlled access areas can alleviate many of their initial concerns.
Once you’ve explained the security features of your building and run through the state requirements for cannabis businesses, you should address any lingering fears or questions that they may have. Two of the most common concerns are the safety of employees while transporting product or cash, and the risk of your building being targeted by burglars looking to steal product.
Regarding employee safety, explain how you will be shipping product to processors or dispensaries. Are you delivering it, are they picking it up, or are you using a third-party transporter? If you are transporting product yourself, explain both the state requirements and your own operating procedures, from GPS tracking to using two employees for each delivery.
You should also go into detail about your banking relationships. Many people outside the industry assume that it’s 100% cash, but if you’re part of the large majority of cannabis businesses with bank accounts, let your local officials know, especially the police chief. They will be much more comfortable if they know your customers will be wiring payments directly to your bank, rather than dropping off duffle bags full of cash at your facility.
Regarding burglary, be sure to re-emphasize your security measures, from cameras and fencing to access control and alarms. Explaining the cannabis life cycle may also be helpful — since plants are not useable products for most of their life, they’re poor targets for theft. This means that cultivation facilities are not prime targets for burglars, but in the rare cases that they are targeted, you can point to examples where cameras have led to burglars’ arrests.
COMMUNITY IMPACT
While economics and public safety are almost always the top two concerns of local governments, they may also be worried about other impacts on the community and how your business will affect residents’ quality of life. Common questions include whether your facility will emit any odor, and if it will increase traffic in the area.
Cannabis is famous for its strong odor, so it’s understandable that people would ask about it. Whether your state requires it or not, it’s advisable to use charcoal scrubbers or other odor mitigation technology to prevent your plants’ odor from escaping the building. Knowing that you’re taking steps to address this concern will help elected officials feel comfortable welcoming you into their community, especially if it’s in a densely populated area.
Traffic concerns may arise, especially if there are recent news stories about mile-long lines at dispensary grand openings. You can address this easily by explaining how cannabis cultivation facilities are not accessible to the public, and the main people coming to your building will be employees and inspectors, not customers.
When built and operated properly, cannabis cultivation facilities should be virtually indistinguishable from any other commercial warehouse. Unless you have very explicit signage (which we do not recommend), most people driving or walking by will not even know that you’re a cannabis business.
GOING FURTHER
Even after you have addressed all of your local government’s concerns, there will probably be even more questions — and that’s okay! This is a great opportunity to keep the dialogue open. Be sure to stay up to date on state laws and regulations so that you can serve as a resource for local officials. Because they’re spread so thin, they will appreciate having someone like you as a go-to when they have questions about cannabis politics or the industry.
If you’re able to offer tours of your facility, that’s a great way to build relationships with your local officials while educating them about your business and the cannabis industry as a whole. They may also appreciate invitations to events hosted by state cannabis regulators, or local industry conferences where they can get broader exposure to the cannabis world.
And of course, it’s important to be a good member of your community. Whether it’s participating in local projects, supporting local organizations, or organizing your own trash clean-ups or other events, staying active and visible will help the community know that they can count on you being a good neighbor.
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 processors.
The 2019 Cannabis Compensation Survey
NCIA is pleased to join forces with FutureSense to announce the first formally executed survey created for the cannabis and hemp industries. A growing number of companies have been looking for data and best practices for their executives and employees. This survey provides benchmark data to better understand compensation trends and remain competitive for talent in the marketplace.
2020 may be filled with unpredictable and new challenges. Compensation data and best practices are the foundation of any human resources and growth initiative. Pay is an effective supporting tool for any employee-oriented effort. As participation in the survey increases, so will our understanding of what is working and why it is effective.
We encourage you to read through the preliminary results laid out in the report and then consider taking the survey yourself by clicking on the links at the bottom of each page.
A new data release is planned for the first quarter of 2020. It will be followed by quarterly updates for the remainder of the year. We are accepting rolling submissions of the survey and will update and rerelease results on a quarterly basis. Participation is easy and we can help! If you’d like to participate simply go to www.CannaCompensation.com, select the “I Want To Participate” button, and fill in your information. FutureSense will contact you with instructions.
Senate Banking Committee Chairman Gives Cannabis Industry Coal for Christmas
by Michael Correia, NCIA’s Director of Government Relations
NCIA’s Director of Government Relations, Michael Correia
As you may have heard by now, Senate Banking Committee Chairman Mike Crapo (R-ID) issued a very disappointing press releaseabout his opposition to the SAFE Banking Act yesterday. If you recall, the SAFE Banking Act passed the House of Representatives in September with an overwhelming bipartisan majority (321-103) and is waiting for a legislative markup in the more conservative Senate.
In the release, Chairman Crapo said, “I remain firmly opposed to efforts to legalize marijuana on the federal level, and I am opposed to legalization in the State of Idaho. I also do not support the SAFE Banking Act that passed in the House of Representatives. Significant concerns remain that the SAFE Banking Act does not address the high-level potency of marijuana, marketing tactics to children, lack of research on marijuana’s effects, and the need to prevent bad actors and cartels from using the banks to disguise ill-gotten cash to launder money into the financial system.” Perhaps the most alarming change Chairman Crapo suggested was a 2% THC potency cap on products in order for a business to have access to the banking system. This provision alone is unworkable and unacceptable.
Chairman Crapo continued by outlining numerous areas that he believes need to be addressed:
Add public health and safety solutions as a requirement for banks to do business with legally-operating state cannabis companies. Options to consider include THC potency; clear and conspicuous disclosures on products; marketing; effects on minors, unborn children and pregnant women; and age restrictions, among other considerations.
Prevent bad actors and cartels from using legacy cash and the financial system to disguise ill-gotten cash or launder money.
Update 2014 FinCEN rulemaking and guidance regarding marijuana-related businesses, and ensure FinCEN has all of the necessary tools it needs to prosecute money launderers and promulgate rulemakings.
Respect state rights in interstate commerce and banking for institutions who operate in multiple states with different state rules.
Eliminate “Operation Choke Point” and preventing future “Operation Choke Point” initiatives. Under fear of retribution, many banks have stopped providing financial services to members of lawful industries for no reason other than political pressure, which takes the guise of regulatory and enforcement scrutiny.
Unfortunately, Chairman Crapo’s views are out of step with the majority of Americans, and every day that he delays a markup on this legislation is another day that puts public safety at risk. While the Chairman may oppose broader cannabis policy reform, he clearly recognizes the problems created by lack of access to financial services. The SAFE Banking Act already addresses many of the chairman’s concerns, particularly public safety, clarity, and transparency. We’re happy to discuss these items with the Senate Banking Committee in a markup. However, efforts to slow this legislation’s momentum will not fix the underlying problems and will continue to put people at risk.
NCIA will continue to work with industry stakeholders, advocates, the financial services industry, and other coalition partners to address Chairman Crapo’s concerns and reach a conclusion that aids public safety, is good policy, and delivers a positive outcome for the burgeoning cannabis industry. That being said, here is how you can help.
Chairman Crapo is requesting public feedback on the SAFE Banking Act and the concerns that he outlined. Interested? You can submit proposals to Banking Committee staff at submissions@banking.senate.gov. Here are a few important tips to remember:
Be polite. While the Chairman’s opinions may not align with your own, remember that he is the sole person deciding whether or not the SAFE Banking Act will continue on in the legislative process.
NCIA, the American Bankers Association, and many other stakeholders have already provided the committee with relevant information on several of the issues identified by the Chairman including legacy cash, interstate commerce and ‘Operation Chokepoint.’
The SAFE Banking Act is a narrow financial services bill that will increase transparency, accountability, and public safety in communities around the country. It does not legalize marijuana.
The SAFE Banking Act is supported by a wide range of national organizations and state officials, including: National Association of Attorneys General (NAAG), United Food and Commercial Workers (UFCW), Credit Union National Association (CUNA), Independent Community Bankers Association (ICBA), American Bankers Association (ABA), Mid-size Bank Coalition of America (MBCA), National Bankers Association (NBA), Electronic Transaction Association (ETA), Law Enforcement Action Partnership (LEAP), The Real Estate Roundtable (RER), National Association of REALTORS, Safe and Responsible Banking Alliance (SARBA), American Land Title Association (ALTA), American Property Casualty Insurance Association (APCIA), The Council of Insurance Agents and Brokers (CIAB), Reinsurance Association of America (RAA), Independent Insurance Agents and Brokers of America (Big “I”), Wholesale Specialty Insurance Association (WSIA), National Association of Mutual Insurance Companies (NAMIC), Rural County Representatives of California (RCRC), Brinks, Inc., International Council of Shopping Centers (ICSC), National Association of Professional Employer Associations (NAPEA), National Cannabis Industry Association (NCIA), Minority Cannabis Business Association (MCBA), National Cannabis Roundtable (NCR) and the Cannabis Trade Federation (CTF). Additionally, the Mayors Coalition to Push for Marijuana Reform, 38 State Attorneys General, 20 Governors, and 18 State Banking Supervisors have endorsed the legislation.
If your business is not yet a member of NCIA, the best way you can help this effort is by joining today so that our team in D.C. can start the year off stronger than ever in our efforts to move sensible banking reform through the Senate and to the president’s desk. Although this news is not what we wanted for Christmas, NCIA has been and will continue to work tirelessly to pass the SAFE Banking Act. We will continue to advocate for a responsible, safe, legal industry in 2020 and beyond. Happy holidays from NCIA’s D.C. team to you and yours!
Supporting Our Cannabis Champions
by Madeline Grant, NCIA Government Relations Manager
With all the action in the 116th Congress so far, NCIA strives to support as many cannabis champions on Capitol Hill as possible. It is key to keep Members of Congress that support cannabis reform in the halls of Congress, as they will continue to push the momentum forward through legislation, committee activity, and education. Our NCIA-PAC Leadership Circle members make this support possible, as their contributions go straight towards Members of Congress. Below are a few events and fundraisers where we utilized PAC funds to support our issues and Members on the Hill.
NCIA staff attended Congressman Ed Perlmutter’s fundraiser in celebration of the passage of the Secure and Fair Enforcement (SAFE) Banking Act on the House side. Rep. Perlmutter is the lead sponsor of the SAFE Banking Act and because of his leadership and hard work over the years, we are seeing more success this congress than ever before!
As we are approaching the Holiday season, Members of Congress are getting festive. NCIA hosted Congressman McNerny’s Holiday Party. Our D.C. staff is making use of our new office, as we’ve hosted a handful of holiday parties this year full of conversations, hot chocolate, and cookies for all.
Another festive holiday party hosted at our D.C. office with Congressman Earl Blumenauer. The Congressman gave everyone a mini fruit cake, a famous annual tradition in the Blumenauer office. With all the momentum this congress, Congressman Blumenauer has been one of our biggest champions in cannabis reform.
Mike and I attended Rep. Porter’s lunch fundraiser this year. It is always a pleasure discussing policy issues with the congresswoman. As a freshman Member of Congress, Rep. Porter has been fighting for the cannabis industry since day 1. We had the pleasure of meeting the Congresswoman when she entered into California’s 45th district race and continue to support her with NCIA’s PAC funds.
Our Director of Government Relations, Michael Correia, attended Rep. Lee’s birthday this past July. He was able to spend some time with Speaker Pelosi and Rep. Lee while discussing cannabis reform. As you know, the momentum in the 116th congress has been momentous so it’s important to thank the Members of Congress that helped make it happen.
How do we support our champions?
NCIA’s Political Action Committee (PAC) supports our champions on Capitol Hill. With NCIA-PAC funds we are able to contribute PAC dollars to the Members of Congress above and many more. These funds go to their campaigns to help them get reelected and stay to fight for us on Capitol Hill. If you are interested in learning more or getting involved with the NCIA-PAC, please send an email to Madeline@TheCannabisIndustry.org. Thank you to our PAC Leadership Circle members that help support cannabis reform on Capitol Hill- without you, we would not be able to support our champions.
Member Blog: The Ultimate List of Must-Have Cannabis POS Hardware
by Heidi Orpilla, Digital Content Specialist at Star Micronics
The cannabis industry is booming – and it’s expected to continue doing so. According to Grand View Research, the global legal marijuana market is expected to reach $66.3 billion by the end of 2025, and each year brings new legalization across the world.
Whether you’re in the business of opening a cannabis business yourself or are looking to provide cannabis point of sale (POS) solutions to your customers, it’s important to understand the critical role cannabis POS hardware has and how to determine which products are right for your business.
Must-Have Cannabis POS Hardware
Receipt Printers
Receipt printers are extremely important in the cannabis market. When it comes to cannabis, proof of legal purchase is key – and there’s no better way to provide it than with a receipt printer. In some places, like Canada, it is illegal to possess cannabis deemed illicit, and without proof of purchase, all cannabis is assumed to be illicit. Carrying that illicit cannabis could result in a $5,000 fine or a five-year prison sentence! In the US, laws vary greatly by state and must also be carefully obeyed.
Along with providing proof of purchase, it’s important to note that depending on your region, receipts must also contain other information, like store name and address, product category/name, and the appropriate tax code/identifier.
Label Printers
Next on the list is another kind of printer: the label printer. An important part of seed-to-sale tracking, printed labels have an important role in the entire cannabis production and retail process. Seed-to-sale tracking is a key requirement in cannabis regulatory models, and refers to the process of tracking plants and their byproducts from planting all the way through to the plant’s sale.
Custom Cannabis Labels
As mentioned above, labels are incredibly important for the cannabis industry. It’s critical to ensure your cannabis labels come pre-printed with official, state-required universal symbols. These pre-printed cannabis labels are available in various sizes for all recreational markets.
Scales
Yet another critical piece of cannabis POS hardware is the scale – but not just any scale will do. First, you must ensure the scale you are considering is legal to use in your state and NTEP-certified. Being certified means that the scales are ensured to charge the correct amount for the product being weighed. Another great feature to look for is a scale that is integrated directly into the POS. Why? Reduced risk of human error that is associated with standalone scales that cannot integrate with the POS.
To make the process of adding a scale to an existing system a simple process, look for scales which are compatible with Windows, iOS, and Android. It’s almost important to seek scales that include a waterproof and dust-proof cover, as well as Bluetooth, USB, and serial interfaces.
Cash Drawers
Chances are you’re aware that the cannabis industry is currently predominately powered by cash. While marijuana is legal in many parts of the country, it remains illegal under federal law, which means dispensaries’ access to credit card processing options is slim. Thus, a reliable, high volume cash drawer is key! Be sure to look for a cash drawer made of durable steel that’s available in colors to match the rest of your POS.
Scanners
Scanners are an important part of the entire seed-to-sale process, from back-end warehouse operations to scanning products at the point of purchase. Important features to look for are connectivity options and a design/color that matches the existing POS, if applicable.
Tablet POS Stand
As we discussed above, dispensary aesthetics are extremely important, not only from a branding and customer experience perspective but also to legitimize the business to outsiders and newcomers. A great place to tie in style is at the POS, and an easy way to do that is by incorporating a sleek, space-saving POS stand into your arrangement. Choosing a stand that features clean cable management is an added bonus.
Self-Service Kiosks
Dispensaries are sometimes limited to how many people they can allow inside at one time because budtenders need to be able to pay special attention to customers, and make sure they are recommending the right products. Some dispensaries are using kiosks to allow waiting customers to pick out what they want on screen, take the slip to the budtender, and simply just collect and pay for their items.
Value-Added Marketing Services
Just like other businesses, cannabis dispensaries need to advertise, but what sets them apart is that they must adhere to strict advertising laws. For example, in multiple states including California and Colorado, over 70% of cannabis advertisement audiences must be over the age of 21.
An easy way to ensure marketing efforts are being communicated only to the intended audience is by printing those promotions on your receipts. By leveraging receipt marketing tools – some of which can be provided by certain receipt printer manufacturers as a value-added service – dispensaries can create custom promotions from templates which increase customer engagement and retention and can be used to promote sales, new products, loyalty programs, and more.
The POS as a Dispensary’s Backbone
In the cannabis industry, accuracy, a professional aesthetic, and responsible marketing are of utmost importance. When properly implemented, the POS can become a dispensary’s backbone to success. By choosing the correct printers, scales, labels, cash drawers, and value-added marketing services, cannabis industry professionals can focus more on growing and selling and spend less time worrying.
Heidi writes for and manages the blog and social media at Star Micronics, a point of sale manufacturer that specializes in POS printing – and more – for the cannabis industry and beyond. Star Micronics offers a full portfolio of cannabis point of sale hardware including receipt printers, cash drawers, NTEP-certified Class II scales, label printers, mobile printers, tablet POS stands, and more. A true one-stop shop, Star provides all the hardware solutions a dispensary could need, from front of house dispensary sales to labeling and weighing product during curation. Additionally, Star has integrations with approximately 85% of all cannabis POS software on the market today.
Picking Up Speed In The 116th Congress – An Overview Of Our Progress
by Madeline Grant, NCIA’s Government Relations Manager
We’ve seen an extraordinary amount of momentum sweep through Capitol Hill so far this Congress. The U.S. House of Representatives passed the Secure and Fair Enforcement (SAFE) Banking Act of 2019 and the Judiciary Committee marked up the Marijuana Opportunity Reinvestment and Expungement (MORE) Act of 2019. On top of these significant policy gains and historic achievements, we’ve seen an increase in cannabis-related bills, committee hearings, amendments, and markups.
With strong Democratic leadership on the House side, the question of legalizing cannabis has even been put on the table. Conversations are happening in hearings and markups that will help educate lawmakers. For example, as cannabis remains a Schedule I substance, significant federal research is still unattainable. These are the important conversations we are having with lawmakers. The SAFE Banking Act passed with overwhelmingly bipartisan support, with a vote of 321-103. This bill has been supported by the American Bankers Association, the Governors Association, the National Association of Attorneys General, and the credit unions across the country. The McClintock-Blumenauer-Norton amendment, which would prohibit the Department of Justice from interfering with state cannabis programs, passed the House with a vote of 267-165. This historic vote shows just how far we have come and with continued momentum where we can go.
Now, we need your help. It is more important than ever that Congress hears from their constituents. Your stories and experiences are what resonates the most with Hill offices. Now that the SAFE Banking Act passed the house, we need to turn our attention to the Senate.
Please call your U.S. Senators and urge them to support S.1200, the SAFE Banking Act, which prevents federal banking regulators from punishing banks for working with cannabis-related businesses that are obeying state laws or halting their services, taking action on loans made to those businesses, or limiting depository institution’s access to the Deposit Insurance Fund. As you call your Senators, be sure to explain the frustration you have had with a lack of access to banking. Personal stories resonate with our Congressional offices, so take a few minutes to make these important calls.
To find your Senators, click this link and simply enter your address. The office phone number will pop up next to their photos.
Please join us May 19-21, 2020 for our 10th Annual Cannabis Industry Lobby Days in Washington, D.C. Not only will you meet with congressional offices to discuss priority cannabis legislation, but you’ll get to know other NCIA members from around the country. For more information about Lobby Days, contact Maddy Grant and madeline@thecannabisindustry.org.
Committee Blog: What The Recent Layoffs in the Cannabis Industry Mean
Many in our industry have heard about the recent layoffs announced by cannabis companies, including some of NCIA’s members, in the U.S. NCIA’s Human Resources Committee views the layoffs as an unfortunate but sometimes necessary part of business, and overall remain optimistic about the industry as a whole.
On the face of it, the recent headlines regarding cannabis industry layoffs appear grim. One of California’s best-known cannabis brands announced a reduction of 20% of its labor force. Another grower is reported to have had a similarly sized cut. Listening to the news coverage, one might have the impression that the industry as a whole is going through a massive negative upheaval. This could not be further from the truth.
At the same time, we have seen hiring trends in 2019 that are overwhelmingly positive. According to an article in Forbes earlier this year, the cannabis industry added almost 65,000 jobs in 2018, with a substantially greater amount expected for this year. Clearly, cannabis is a significant growth engine for employment across the U.S. Add in Illinois, Massachusetts, and other states legalizing cannabis for medical or adult-use, and the numbers continue to grow. The state of the cannabis industry is strong!
Since its founding nearly a decade ago, NCIA has dedicated itself to promoting the growth of a responsible and legitimate cannabis industry. During this time, the industry workforce has swelled to over 200,000 people, and new people are joining us daily from coast to coast. NCIA’s HR Committee, which is comprised of human resource practitioners devoted to bringing best practices to the cannabis industry, carefully monitors hiring trends and other people-related developments.
NCIA’s Human Resources Committee regrets any job losses for their impact on the lives of employees and their families. History has shown that layoffs often happen in high growth industries. These reductions in force occur when companies who have over-invested ahead of anticipated growth must adjust their labor counts to rapidly shifting business dynamics. While painful in the short term for employer and employee alike, this represents a chance for other companies to acquire top talent, and for that top talent to secure new and exciting opportunities.
NCIA’s HR Committee is unwavering in its faith that the cannabis industry will continue to grow as an economic force in this country for many decades to come, and that these short-term changes will make the industry better, stronger and more resilient in the long run.
There are many ways you can get involved and help. Attend NCIA’s national trade shows and regional networking events to get your foot in the door of our dynamic industry. Start a business. Educate yourself on the latest issues, and contact your congressperson. Whatever road you choose to take, we look forward to welcoming you as our partner on this amazing journey!
Watch The Webinar: Michigan’s Adult-Use Market – What Comes Next?
In case you missed the December 3 webinar: The Midwest is becoming a major player in the cannabis industry and Michigan is now accepting applications for its adult-use cannabis licenses with the launch date fast approaching. Join our expert panel as we provide insights into the Michigan adult-use market: an update on what has transpired so far, what potential operators need to know about this key market, and how Michigan’s market will compare to others around the country. It’s an exciting time for our industry with the Midwest on the verge of launching adult-use sales. Watch this webinar from NCIA’s State Regulations Committee as they explain what you need to know.
NCIA Committees: Quarterly Update And A Look Ahead
NCIA committees are an opportunity for members to get directly involved in specific industry issues and sectors. These volunteer-driven efforts engage members’ expertise and passion to drill down in areas of expertise and passion to effect change, provide professional development opportunities, and develop best practices and guidelines that will shape the future of our industry.
We recently checked in with these various committees to learn more about what they’re up to and what projects they’re working on this term. Get updated on their activities below.
Scientific Advisory Committee (SAC)
SAC is comprised of practicing scientists, physicians, and other scientific field professionals. SAC’s vision is to disseminate educational materials to NCIA members on scientific topics in the cannabis industry and to advise other NCIA committees as they work to develop standards and guidelines, ensuring that any formal recommendations produced are scientifically sound, sustainable, and legitimate.
SAC is currently working on five projects, all of which are in the outline or first draft phase:
1) Blog on the science behind why ‘sativa’ and ‘indica’ are no longer the best way to classify cultivars.
2) White paper on how cannabis may help the opioid crisis with a review of scientific studies that show how cannabis can be an alternative for pain management.
3) Blog calling doctors to action in the cannabis industry and why it is important for doctors to get involved.
4) Blog on the vaping crisis from a physician’s point of view. 5) General audience and technical white papers on the Endocannabinoid System.
Marketing & Advertising Committee (MAC)
The MAC coalesces the talents of 20 of the industry’s top-tier marketing and communications professionals around three focus areas: Education, Advertising Access and 2020 political goals. We use our personal, professional and business skills and networks to help build a responsible, legal cannabis industry. The committee is producing best practices, webinars, workshops and social media campaigns to aggregate and generate support from NCIA members, the public, media, government and business leaders.
In our first quarter, our Education Sub-Committee began creating a Speakers Bureau to provide qualified experts for conference organizers and media who will address topics of interest and concern in the industry.
Our Advertising Access Sub-Committee is completing best practices for advertising, making presentations to media groups and expanding Advertising/Labeling Do’s and Don’ts from five states to all legalized states.
Our 2020 Sub-Committee is driving awareness around policy change through panel presentations, preparing a campaign supporting pro-cannabis candidates and is encouraging professionals from the cannabis industry to run for office.
Cannabis Cultivation Committee (CCC)
We are working on producing our first podcast episode, which will feature top-notch farmers who are doing great work employing sustainable practices in indoor facilities.
There will be more podcast episodes to come on other hot cultivation topics.
State Regulations Committee (SRC)
The State Regulations Committee has been hard at work on a number of exciting pieces of work-product that should be available soon. For example, we hosted a webinar on December 3, 2019, in which the expert members of the Committee break down what operators need to know about Michigan’s adult-use market’s rules before it launches in 2020.
The State Regulations Committee has work-product in the pipeline on a number of topics of great importance to members. That includes a recurring guidance series on social consumption in markets across the nation, posts analyzing challenges in local/municipal regulation, a focus on the crucial questions of promoting social equity, and much more.
Cannabis Manufacturing Committee (CMC)
The Cannabis Manufacturing Committee is focusing on reviewing existing business practices and state regulations of concentrates, topicals, vaporizers and, edibles ensuring the manufacturing sector is helping shape its destiny. In this approach, we have published our first blog using lessons learned from the e-cig sector. We are also engaging with NCIA’s Safe Vaping Task Force.
CMC has created three sub-committees; GMP (Good Manufacturing Practices), Testing (from the operator’s view), and Nomenclature (providing clarity to industry language). GMP has its first draft complete and will be ready for publication in November. Nomenclature has a concrete draft to review for publishing its first part of a multi-piece series.
Packaging & Labeling Committee (PLC)
The PLC has 4 subcommittees: Honesty & Labeling, Sustainability, Security, Next Generation Packaging. Each subcommittee has set a goal of producing 3 or more blogs and 1 webinar. We have a very motivated and strong group this year. Our biggest vision for the year is to use our data, blogs, white papers, webinars, and PLC members’ knowledge to create a document reflecting the industry views on what federal policy should be around packaging and labeling.
The Retail Committee is working on a compilation of SOPs for retail compliance to turn into a white paper and webinar series, combining efforts from various retailers in several states/markets in order to be most useful to the national audience.
Facilities Design Committee (FDC)
As a new committee, we have established a mission statement: To provide access to resources for the NCIA community and regulators that will inform the design and use of GMP-driven, sustainable and operationally efficient facilities to position our industry to compete in the global marketplace.
We have established two sub-committees: Standards and Sustainability. The Standards Sub-Committee is linked through membership to ASTM’s D37 committee on cannabis.
Banking & Financial Services Committee (BFSC)
Our vision is to provide reliable, actionable and current information to NCIA’s members via committee member videos and a monthly newsletter. The committee will also be coordinating “NCIA Panels” at Bank and Credit Union conferences throughout the country to spread awareness to the issue and bring these institutions closer to the industry.
Lastly, the committee will be contributing language to the Policy Council for revision of the current version of the SAFE Act.
We will keep the NCIA updated as the Bank and Credit Union panels are confirmed. The committee will continue to pair any operator with the best banking option based on a myriad of factors, free of charge.
NCIA Members Now Have A New Way To Register For Events… And Beyond!
A New Way To Register
To claim your complimentary tickets, you must follow the steps below.
First, check to see if you already have an account. If you’re not sure, click “Forgot your password?” to find out.
If you need to create a new account, please follow these steps:
Fill-out the required information and click “Create Account”
You are now logged in and can finish completing your profile.
To claim your complimentary tickets, you must affiliate yourself to your company. To do so:
Click “My Company’s Profile” on the left sidebar menu.
Click “My Affiliation” button
Enter company name with current NCIA membership in the “Account Name” field
You can also enter Primary Phone and Website associated with your business to help narrow the search
Click Search
Select the “Add Affiliation” button adjacent to your corresponding member business, and click “OK”
Once affiliated, select the “Upcoming Event” section on the left sidebar menu, and navigate to the corresponding event listing to complete the registration process.
During the checkout process, you will be notified of complimentary registrations available.
Click “Apply” to redeem a single ticket remaining within your allotment. If you have surpassed your allotment, you will need to purchase additional tickets.
Need help? Reach out to your designated “Company Manager” to assist. Not sure who your Company Manager is? It’s typically the person at your company who initially signed up for your NCIA membership.
As with any industry experiencing unparalleled growth, the cannabis industry is going through a few growing pains in these early years of legalization. Cultivators especially are feeling the pinch as long-standing business practices no longer achieve the competitive edge in a crowded playing field.
Commercial operations look much different today than they did even a decade ago. It’s no longer about experienced growers nor about high tech solutions—the best practices for cannabis cultivation in 2020 come down to the math.
As we head into 2020, how do you increase yields, shave down production costs, and use metrics to manage future harvests? Start with the numbers and drill down.
Labor Considerations
Despite the advances in automation, cannabis still requires a human touch. From California to Ohio to Florida, labor is consistently a producer’s most significant business expenditure. As the largest monthly expense, labor is always a top priority when working on the bottom line. No matter how skilled or educated, human labor is still prone to inefficiencies, wasted time and costly mistakes. Keeping employees on task, consistently trained and accountable can go a long way towards reducing sky-high labor costs.
The best practices on labor in cannabis cultivation aren’t just about hiring the most talented person or operating with the leanest workforce, it’s about running a tight ship. Reduce costs through automated team management or digitally track to-do lists to assign the perfect employee to the most appropriate task. By focusing on improving the efficiency and value of each team member, you’ll create a measurable reduction of labor costs.
Analyze Past Performance for Better Forecasting
Unsurprisingly, cultivators can no longer rely on intuition and handsome experience as a means to producea premium product. Detailed analysis of past crop performance is the only way to outperform the competition and predict future profits.
Accurate and detailed crop analysis creates consistency between harvests (which translates into consistent sales). It can also help improve the crop with minute adjustments during the growth cycle. These tiny tweaks are not feasible if your crop management is based on whiteboards and notepads.
We are working with a grow that will harvest 30,000 plants this year. If they were able to increase their average grams per plant by just one (1) gram, they would see additional sales of $385,000, at nearly zero additional dollars to grow that single gram. Crunching the data from past crops will help grow more profitable future harvests.
The Growing Demands of Metrc
The wrath of the regulator is increasingly prevalent within established markets. With 11 states and counting adopting Metrc (Marijuana Enforcement Tracking Reporting Compliance), it’s become a non-negotiator. Metrc is a mandatory requirement placed on all players in the industry to track, trace and stay compliant.
In many regions, Metrc is required by the state. As a cultivator, making Metrc a priority reduces risk and establishes your product in the market. If you can consistently master the rigorous requirements of Metrc, it’s setting the business up for long-term success.
Data is King, So Lean into the Numbers
Again, cultivation experience is only one piece of the equation these days. Data analysis is an increasingly necessary path towards larger harvests and to keep the costs-per-pound in check. Cannabis cultivation management systems (CCMS) facilitate the move off of whiteboards and spreadsheets into an automated, algorithmic analysis.
Without crunching hard numbers, it’s impossible to determine which strains are the most profitable. It’s equally as painful to decide which employees are the most efficient at which tasks. While spreadsheets can capture massive amounts of data, few companies have an experienced data analyst capable of performing the analysis. It’s why a CCMP is no longer a luxury, it’s become a best practice within commercial operations.
Controlling the Costs of Cultivation
The margin matters in the cannabis industry in ways it never has before. Beyond labor, how does the cost-per-pound break out? Spend the time (and the money) for a deep dive into your largest expenditures directly related to the grow. Examine the costs associated with standard utilities, nutrient procurement, pest management and waste management services to identify areas suitable for cost-cutting measures.
Which services are best farmed out to third-party contractors? What automation can be implemented to cut the cost of the process? Would an upfront investment into more efficient lighting or an on-site biomass cleaning facility make long-term sense? All are important questions to consider during this analysis.
The best practices in cannabis cultivation in 2020 are all about drilling down on the numbers. This is where a CCMP comes into play. It’s about saving on labor without cutting capacity. It’s about assessing the statistics of past harvests to develop a better product.
Cultivators need to have a solid grasp on the minute details contained within their cost-per-pound to shave pennies from utilities, pest control or waste management. At the scale of most commercial grows, pennies per pound transform into significant annual increases in profitability.
Brett Strauss is President of FolioGrow, a cannabis cultivation management system developed with the express purpose of using math and algorithms to help improve yields and profits for cannabis and hemp growers. Get a free 30-day trial or follow the company on LinkedIn, Instagram or Facebook.
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I grew up in rural King George County, Virginia, where I lived until I went to college. Let me just say: if you had asked me in high school where I saw my career going, I would not have guessed the cannabis industry! But, it turns out life had other plans for me. 
The gentleman who came in was (and still is!) NCIA’s Director of Government Relations, Mike Correia. While the company I worked for pitched him on their services, all I could focus on was Mike who elaborated on the incredible work NCIA was doing, about how he was a one-man government relations team and working from home. All I heard was: this guy is going to need to hire someone, and I knew it had to be me! After talking to my boss and getting his blessing to reach out to Mike, we set up a time to grab a drink and talk more about the industry. Lucky for me, Mike and I were like old friends catching up, and though NCIA didn’t have the budget at the time to hire another government relations staffer, he said he would keep me in mind. About six months later, NCIA was ready to expand the D.C. team and I applied for the job of government relations coordinator. Words can’t explain to you how happy I was when I received the offer to join NCIA’s team in October 2014.
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. 
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Taylor Robinson is the Research & Development Manager and Chief Chemist for Silver Bullet Water Treatment with expertise in molecular and cell biology, general water chemistry, microbiology, and industrial (oil and gas) water treatment and reuse processes/chemistries. For the past 4 years, Taylor has led, conceptualized, organized, and completed numerous Silver Bullet research and development projects related to water treatment for the livestock, cooling water, horticulture, aquaculture and data center industries. Taylor joined Silver Bullet in 2016 and has been a key contributor to the advancements in the company’s technology and research base.
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In his role as 
