Member Post: Amazon’s “Hemp” Products Are Lying to You, New CBD Oracle Lab Study Finds
Amazon’s “Hemp” Products Are Lying to You (and Hurting the Industry), New CBD Oracle Lab Study Finds
TL;DR: A CBD Oracle investigation finds that 43% of hemp products sold on Amazon often don’t contain hemp at all, and are deceptively marketed to evade Amazon’s lax enforcement.
The independent investigation of the hemp market on Amazon which was commissioned by CBD Oracle has found that almost half of all products lie to customers and has revealed the challenges faced by both consumers and honest sellers on the platform.
Along with 43% of so-called “hemp” products not containing any hemp at all, companies selling on Amazon.com often report their products being pulled from the storefront while those obviously lying about their contents remain up on sale.
The market is a minefield for consumers and the main benefactors are deceptive fly-by-night companies and Amazon themselves.
A Brief Introduction to Amazon’s Hemp
If you’ve ever bought or sold hemp before, browsing the selection available on Amazon is truly bewildering.
Products promise doses of hemp that are impossible to fit into a gummy, make obvious medical claims and reassure customers that they’re third-party lab tested while usually not making the results available on Amazon or anywhere else. There are so many red flags they start to look like wallpaper.
Amazonpolicy prohibits CBD unless it’s a topical product which has been specifically approved. This was established to prevent unreliable or illegal products from making it onto the site, but the consequence has been just the opposite. Instead, sellers simply don’t mention the word “CBD” anywhere on the product page, and this provides a smoke-screen to companies hoping to sell the expectation of CBD while actually offering nothing of the sort.
“Hemp” on Amazon is not a description, but a purposefully vague euphemism.
Testing the Hemp Sold on Amazon
CBD Oracle purchased 56 of the most popular hemp products on Amazon and sent them toInfiniteCAL for testing. The main results show the impact of the current policies on the platform.
30% of products contained CBD. Although these products violate Amazon policy, they at least offer customers what the listings imply in a basic sense.
62.5% of products contained no cannabinoids at all. Given that the majority of products explicitly promised some amount of “hemp” in milligrams, these products are misleading at best.
43% of products contained no hemp at all, as verified by gas chromatography-mass spectrometry (GC-MS) testing. Every single product in the study promised “hemp,” but even if they meant hemp seed oil, these 43% are still blatantly deceiving customers.
11% of products tested positive for THC, with three products having huge quantities of delta-8 THC. The maximum dose per gummy was 76 mg THC.
96% of products did not provide an accurate dosage to customers. This means that the measured dosage doesn’t fall within 10% of what they advertised.
The Misleading Marketing of Amazon’s Hemp
The lab results show that the hemp sold on Amazon doesn’t meet the expected standard of CBD and hemp products in the modern day. However, customers on Amazon are less likely to be engaged with the industry and probably have less of an idea of what is expected of any hemp product. Combined with some careful marketing, this makes the average Amazon hemp buyer way more likely to pick up an unreliable product.
CBD Oracle’s analysis of the marketing of Amazon hemp reveals many serious problems with the market and the claims sellers make:
52% of products are sold based on unapproved medical claims, often surrounding pain, stress or anxiety relief.
95% of products do not provide a third-party lab report to consumers anywhere online, and none of them are shown on Amazon.
Customer reviews were unreliable in about half of cases. Mozilla’s FakeSpot rated 48% of products D or lower for overall reliability.
There was no reliable, direct method to communicate with the sellers behind 89% of products. 28 products were identified as breaking theINFORM Consumers Act.
Many products make claims which are literally impossible (e.g. 7.7 pounds of “hemp” in a 0.8 pound package), but are not removed when reported to Amazon.
How Amazon’s Hemp Impacts the Wider Industry
Amazon’s hemp market is not only bad for the customers who choose to make purchases through the retailer; it also threatens the perception of the industry at large.
Andrew Livingston, Director of Economics & Research at Vicente, commented to CBD Oracle that:
“One, these products drive consumer[s] away from the entire hemp supplement category for fear that the entire market cannot be trusted or is not properly regulated. This means legitimate businesses with great products that benefit consumers lose out. Second, problematically labeled and branded hemp products indicate to regulators and public officials that the entire category needs more robust and stringent restrictions.”
In short, even though these products come from unknown companies and aren’t widely regarded in the hemp industry, their careless actions threaten to drag the whole industry through the mud with them.
Conclusion: How Amazon Can Solve the Problem
Amazon’s hemp problem is created by a lack of enforcement and a policy which incentivizes companies that lie about their products. In line with this, there are two avenues for a solution.
Firstly, Amazon could simply devote more resources to enforcing their current policy.
Alternatively, and more realistically, they could acknowledge that CBD is sold on their platform, and instead rectify their policy. By allowing CBD products if they are backed up with a certificate of analysis by an accredited third-party lab, honest manufacturers would be able to compete on a level playing field, and virtually all of the products in this analysis would have to prove their claims or be removed from sale.
One thing is certain: the status quo on Amazon is harmful to both consumers and the industry, and it has to stop.
Lee Johnson is the senior editor at CBD Oracle, and has been covering science, vaping and cannabis for over a decade. He focuses on research-driven deep dives into topics ranging from medical uses for CBD to industry and user statistics, as well as general guides and explainers for consumers.
CBD Oracle is a consumer research company working to improve the safety and transparency of cannabis and hemp products, producing in-depth research pieces on cannabis and cannabinoids, along with analysis of social and legal issues.
Empower Your Voice: Unveiling NCIA’s Updated Congressional Scorecard
In just over 200 days, people across the country will head to the ballot box to make their voices heard. As you take the time to consider the issues that matter the most to you and which candidates best align with those values, NCIA is here to help with our recently updated congressional scorecard.
Our scorecard shows how members of Congress have voted and who has supported various cannabis bills over both the previous (117th) and current (118th) sessions.
With more than 500 members, it can be hard to keep track of votes and congressional support on the issues that matter the most to you and your business. During the 117th congress, the House of Representatives voted on both the Secure and Fair Enforcement (SAFE) Banking Act (H.R. 1996) and the Marijuana Opportunity, Reinvestment, and Expungement (MORE) Act (H.R. 3617). There has not yet been any floor votes on these bills (or other) priority cannabis legislation over the course of the current (118th) congress. That being said, our scorecard does show how members of the Senate Banking Committee voted on the SAFER (Secure and Fair Enforcement Regulation) Banking Act during a September 2023 markup of the bill. The scorecard also shows which members of the Senate have signed on as cosponsors of the SAFER Banking Act (keep in mind there are about a handful of members who signed onto the SAFE Banking Act, but have yet to support this newer iteration).
Though it may seem silly, I’m envious of your ability to look at these voting records. As a resident of Washington, D.C., I (along with hundreds of thousands of my neighbors) am subject to taxation without representation and have no voting member of Congress. D.C. has also been unable to fully implement its voter approved 2014 adult-use initiative due to congressional interference, but that’s a story for another blog!
I hope this scorecard helps you continue to hold your elected officials accountable- both at the ballot box and through civic engagement. I also hope this tool will empower you to get involved with government- at any level- whether that be by setting a meeting with one of your representatives’ district offices, attending a town hall meeting, or volunteering on a campaign. Don’t forget to make sure you’re registered to vote, and if you’re unsure about who your elected officials in Washington are, you can click here. Lastly, one of the best (in my humble opinion) ways to make an impact on elected officials is by attending our annual cannabis industry lobby days. Make sure you mark your calendars for May 14-16 and register today to get the best rate!
Member Blog: How to Hire a Fractional Cannabis CFO
Small businesses — from startup to $20 million — face challenges when it comes to hiring accounting and finance staff.
In addition to the budget-breaking cost of an in-house finance team, it’s not easy to find, train and manage the right people within the day-to-day of a growing business. Not to mention the fact that a full-time team likely wouldn’t have enough work to keep themselves busy with a business of that size. That’s why outsourcing has become popular across industries: small businesses can leverage the expertise of bookkeepers, tax preparers and planners, as well as CPAs and financial advisors, at a fraction of the cost.
The advisory role — often referred to as outsourced or fractional CFO services — fills a particularly essential need, providing business owners with a strategic partner to help make financial decisions about their short-, medium- and long-term future at a lower price-point than a full-time Chief Financial officer (whichaverages $229,000 per year not including vacations, bonuses and other benefits).
That’s why businesses between the $3-$20-million revenue mark consider outsourcing the position. Oftentimes these services include a la carte options such as taxes, accounting, payroll, and coding of transactions (essentially bookkeeping), depending on whether the business already has some of these functions in-house.
Three things to look for when hiring a cannabis CFO
There are a variety of ways to access outsourced or fractional financial services, whether it’s hiring an individual, using a freelance match-making service or working with a dedicated team.
Do they provide forward-looking advice?Cannabis companies face unique challenges. Every business could benefit from cash flow forecasting, but in cannabis, where profits are extra tight, a CFO needs to be able to help strategic planning: weighing the cost-benefit of investments, strategizing tomanage overhead and boost sales, and ensure the business stays disciplined as it grows.
Are they involved in the industry?In an industry like cannabis, where regulatory shifts are always on the horizon, you want a CFO is staying on top of policy — bothfederal and local. That means they’ll have the necessary insight to help you plan with those changes in mind, as well as to think about what could happen as a result of all these shifts within your business.Beyond policy, a CFO should be able to help businesses with other industry-specific challenges, like securing merchant services for dispensaries and establishing banking relationships, which is significantly tougher for cannabis businesses to do, in light of current federal policy.
Do they ask strategic questions?A good CFO never tells you what to do. They get to know your business through in-depth questions, identify the non-financial drivers to monitor and improve, and then help you navigate the best path with the information that you have.
When is it time to hire a fractional cannabis CFO?
If you find your business is getting to a point where you’re making decisions but don’t understand the financial impact or don’t know what risks may be out there — especially if you’re in a growth phase — hiring a fractional CFO will help guide you on the financial side and still fit within your budget.
The cannabis industry is at an inflection point. There are so many areas where strategic planning isn’t a nice-to-have, it’s a must-have. As regulations shift, it will be essential to have a financial partner who can help businesses pivot quickly and adopt new technologies that become available to the industry as we move forward with policy progress at the federal level.
Member Blog: Cultivating Safety – Advanced Workers’ Compensation Solutions for Cannabis Businesses
The cannabis industry is experiencing rapid growth, bringing with it unique risks and regulatory challenges, especially in protecting employees. Recognizing the complexities of this industry is crucial for developing comprehensive insurance solutions, particularly in workers’ compensation. This blog explores strategies and insights tailored to navigate the intricacies of cannabis-related businesses.
The Unique Occupational Risks in Cannabis
Occupational hazards in the cannabis industry vary significantly across its different verticals—from cultivation and harvesting to manufacturing, distribution, and retail. Each step of the way introduces specific risks:
Cultivation: Employees may face exposure to pesticides, ergonomic challenges, and the potential for injuries related to manual labor or the operation of agricultural machinery and electrical exposures
Manufacturing: The extraction process involves handling volatile substances, which can pose chemical exposure risks, while the use of heavy machinery introduces the potential for industrial accidents.
Retail and Distribution: Employees in these sectors might encounter security concerns, the risk of theft, and repetitive motion injuries, alongside the unique challenges of delivering products safely.
Recognizing and addressing these varied risks is the cornerstone of an effective workers’ compensation strategy, ensuring that businesses are prepared to support their employees in the event of an occupational injury or illness.
Why Workers’ Compensation Is Essential
Workers’ compensation is not just a legal formality; it’s a cornerstone of your business’s resilience. A well-conceived policy ensures that employees are protected in the event of workplace injuries, which in turn safeguards your business from potentially crippling financial liabilities.
Generic workers’ compensation policies often fall short of meeting the specific needs of the cannabis industry. A focused approach on the unique challenges of cannabis operations, is not only beneficial, but necessary for comprehensive protection. This strategy involves:
Risk Identification and Analysis: Understanding the specific hazards associated with different cannabis industry roles is the first step in crafting effective workers’ compensation policies.
Rapid Claim Resolution: Efficient processing and resolution of claims are vital in controlling costs and supporting injured employees’ return to work. Speedy claim closure not only benefits the employee, but also helps manage the financial impact on the business.
Mitigation and Cost Control: A Proactive Approach
Effective claim resolution and risk mitigation are key for cannabis businesses to control workers’ compensation costs effectively. Leveraging advanced data analytics helps identify claim sources and implement prevention measures, closing claims swiftly and reducing overall insurance costs.
Implementing Robust Risk Management Practices
Significant impacts on the frequency and severity of claims can be achieved with:
Safety Training and Education: Regular programs can help employees avoid injuries and safely navigate potential hazards.
Ergonomic Assessments: Identifying modifications in roles involving manual labor or repetitive tasks can reduce strain and prevent injuries.
Security Measures: Enhancing security can mitigate risks associated with theft, especially important in retail and distribution.
A Case in Point: Swift Resolution for a Cannabis Delivery Company
Consider the case of a cannabis delivery company that faced a workers’ compensation claim when a delivery driver sustained an injury on the job. By employing a focused approach to claim management, including prompt medical evaluation and clear communication channels, Liberty’s intervention led to the claim being settled and closed in under four weeks—a testament to our commitment to fast and effective resolution. This not only minimized the cost to the company, but also allowed the employee to return to work sooner, maintaining productivity and morale.
Beyond Claims: Comprehensive Risk Management
A holistic risk management approach covers all potential risks, from delivery driver incidents to cultivation and retail hazards, ensuring comprehensive coverage.
Choosing a Strategic Partner
Partnering with an insurance provider that understands the cannabis industry’s complexities is critical. Customized strategies in insurance and workers’ compensation can offer unparalleled protection and peace of mind, supporting your business’s growth and resilience.
The Path Forward for Cannabis Businesses
As the cannabis industry evolves, strategic foresight in managing workers’ compensation is essential. Focusing on specific sector needs and prioritizing efficient solutions can create a safer work environment and a more resilient future. With the right strategies and a commitment to safety and efficiency, businesses can navigate these challenges successfully, ensuring protection for employers and their valued employees.
For more information, please reach out toValerie Taylor, Vice President (National Cannabis Practice Leader), Liberty Company Insurance Brokers and Kirk Aguilera, Managing Partner (National Workers’ Compensation Practice Leader).
Wellness at Work: Preventative Healthcare for Cannabis Business Owners
Navigating Challenges in the Cannabis Industry
The cannabis industry finds itself constantly grappling with challenges imposed by federal regulations and government scrutiny. Despite these obstacles, there are numerous strategies available to businesses within this sector that can mitigate fixed costs, save money, and preserve valuable staff positions.
Delivering Tangible Value
Our seasoned team, boasting a track record of saving well over $2 billion for our clients, specializes in pioneering solutions that deliver tangible value. We recognize the unique demands faced by cannabis business owners and have tailored our approach to offer seamless evaluation and implementation of our tools, ensuring minimal disruption and maximum efficiency. This commitment to excellence has earned us the trust and loyalty of nearly half of our clients, who consistently refer us to their peers and associates.
Game-Changing Healthcare Solution
For cannabis operations employing W2 staff, we offer a game-changing solution: a preventative healthcare plan meticulously designed to address the specific needs of the cannabis industry.
Zero-Cost Structure with Significant Savings
What sets our plan apart is its zero-cost structure for employers, coupled with its ability to instantly lower payroll taxes without necessitating any modifications to existing benefits packages. This makes it an ideal solution for businesses looking to enhance employee retention while simultaneously bolstering their bottom line.
Comprehensive Benefits for Employee Well-Being
The benefits offered through our plan are not only financially advantageous but also genuinely impactful. From round-the-clock telemedicine visits to access to hundreds of free generic drugs and preventative screenings, employees gain access to a comprehensive suite of resources aimed at promoting their health and well-being. This not only enhances job satisfaction but also contributes to a healthier, more productive workforce.
Efficient Implementation and Support
Implementing our program is straightforward and efficient, with many businesses up and running in just a matter of minutes. Whether you’re a small-scale operation or a large enterprise, our team is dedicated to providing the support and guidance you need to maximize the benefits of our innovative healthcare solution.
Empower Your Business Today
Take the first step toward transforming your business and empowering your employees by scheduling a brief call with us to learn more. Together, we can pave the way to a brighter, more prosperous future for your cannabis business.
Empower Your Cannabis Business: Join Our Service Solutions Webinar!
Don’t miss out on the opportunity to learn more about how to optimize your cannabis business with our innovative healthcare solution and other service solutions. Join us for our upcoming Service Solutions webinar being broadcast LIVE on Tuesday, April 16th at 3:00PM ET / 12:00PM PT featuring the LG Resources team as they unveil their latest offerings in Preventative Health Care and AI Tax Planning.
Register now to secure your spot and gain exclusive insights from industry leaders. Click here to register for this essential webinar.
Take the next step in elevating your cannabis business to new heights. We look forward to seeing you there!
Unlocking Financial Potential: AI Tax Strategies for Cannabis Business Owners
The cannabis industry finds itself constantly grappling with challenges imposed by federal regulations and government scrutiny. Despite these obstacles, there are numerous strategies available to businesses within this sector that can mitigate fixed costs, save money, and preserve valuable staff positions.
In today’s rapidly evolving landscape, the integration of AI has ushered in a new era of efficiency and optimization across various domains, including finance and taxation. At LG Resources, we’ve embraced this technological advancement to revolutionize tax planning, transforming what was once considered a daunting task into a streamlined and rewarding opportunity for our clients.
Unparalleled Precision: Our AI-Powered Program
Our commitment to excellence is exemplified by our proprietary AI-powered tax planning program, which stands at the forefront of innovation in the industry. This sophisticated software boasts the capability to analyze over 1,500 Federal, state, and local tax programs with unparalleled precision. By leveraging machine learning algorithms, it identifies bespoke strategies tailored to each client’s unique financial profile, thereby unlocking substantial opportunities for tax savings.
Seamless Integration: Merging AI with Expertise
The cornerstone of our approach lies in the seamless integration of AI technology with over a decade of private wealth management expertise. This synergistic combination allows us to offer clients a comprehensive suite of services that not only optimize tax outcomes but also align with their broader financial goals and aspirations. Whether navigating complex tax regulations or maximizing wealth accumulation, our seasoned team of professionals is dedicated to delivering results that exceed expectations.
Adaptive Strategies: Staying Ahead of the Curve
One of the key advantages of our AI-powered tax planning program is its ability to adapt and evolve in response to changing tax laws and economic conditions. Through continuous monitoring and analysis, we ensure that our clients remain ahead of the curve, capitalizing on new opportunities for tax optimization as they arise. This proactive approach not only minimizes tax liabilities but also positions our clients for long-term financial success and security.
Personalized Service: Tailored Strategies for Every Client
Central to our philosophy is the principle of personalized service. We recognize that every client is unique, with their own set of financial circumstances and objectives. As such, we take a tailored approach to tax planning, crafting customized strategies specifically designed to meet the needs and objectives of each individual client. Whether you’re a high-net-worth individual, a small business owner, or a corporate executive, our team is committed to developing a tax plan that works for you.
Proven Results: Empowering Financial Well-being
Our AI-powered analysis has yielded impressive results for our clients, consistently delivering substantial tax savings across a wide range of scenarios. From helping clients save millions of dollars in taxes to securing substantial refunds and credits, we’ve consistently demonstrated our ability to deliver results that make a difference.
Join Our Service Solutions Webinar: Empower Your Business
Don’t miss out on the opportunity to delve deeper into these cutting-edge services! Join us for our upcoming Service Solutions webinar on Tuesday, March 19th featuring the LG Resources team as they unveil their latest offerings in Preventative Health Care and AI Tax Planning.
Discover how these innovative solutions can transform your business operations and financial outcomes.
Register now to secure your spot and gain exclusive insights from industry leaders. Empower your business with the tools you need to thrive in the cannabis industry. We look forward to seeing you there!
Member Blog: The Entrepreneurial Operating System – Industry Agnostic
The EOS model was developed by Gino Wickman, an entrepreneur and author, based on his experiences working with small to medium-sized businesses. The system was introduced in the book “Traction: Get a Grip on Your Business”, written by Gino Wickman and published in 2007.
Today, EOS is utilized by a wide range of businesses across different industries, helping them establish a strong foundation for growth, enhance leadership effectiveness, and achieve greater overall success. The EOS framework’s practical approach and focus on accountability have contributed to its widespread adoption in the business world.
Diving into the six key components of the EOS (Entrepreneurial Operating System) model – Vision, People, Data, Issues, Process, and Traction – and discuss how strengthening the 6 components can increase team health, profitability as well as scalability in a business.
1. Vision:
Define a Clear Vision: Articulate a compelling and clear vision for the organization, involves identifying the core values, purpose, and long-term goals. Assisting in communicating this vision effectively to align everyone in the organization.
2. People:
Right People in the Right Seats: Assess whether the right individuals are in the right roles. Identify strengths and weaknesses, ensuring that each team member is aligned with their unique abilities.
Cultivate a Healthy Culture: This guide helps creating a positive and constructive workplace culture. This involves fostering open communication, trust, and accountability among team members.
3. Data:
Identify Key Metrics: Determine the critical metrics and data points that impact a business. Examples are financial indicators, customer satisfaction scores, or operational efficiency metrics.
Implement Data-Driven Decision-Making: Establishing a system for collecting and analyzing data regularly. Data-driven decision-making helps to enhance overall performance and adaptability.
4. Issues:
Create an Open Issues List: Develop a transparent issues list. This involves identifying and addressing challenges openly, ensuring that no critical issues are overlooked or ignored. Solving issues is an efficient way of bringing issues down to the ground and solving them forever.
Implement Structured Problem Solving: This is designed to be a guide to effective problem solving at the leadership level.
5. Process:
Document Core Processes: Documenting a handful of core processes ensures that everyone understands their roles and
responsibilities, fostering efficiency and reducing confusion.
Continuous Improvement: Encourage a mindset of continuous improvement.
6. Traction:
Set and Monitor Goals: Setting SMART goals (Specific, Measurable, Achievable, Relevant, Time-bound). Establishes a system for monitoring progress.
Implement Regular Accountability Meetings: Conducting regular accountability meetings to track progress, discuss
challenges, and ensure alignment with company objectives.
These tools are part of the EOS framework, which aims to help businesses, in any industry including the Cannabis Industry, become more organized, focused, and efficient in achieving their goals. Each tool serves a specific purpose within each of the 6 key components, contributing to the overall success of the organization.
Member Blog: What I Learned from Serving as an NCIA Committee Officer
The National Cannabis Industry Association (NCIA) is a business-member organization of professionals from every sector of the legal cannabis industry, from seed to sale. I finished my tenure as Chair of the NCIA Education Committee (EC) in December 2023. I joined the EC in October of 2019 as a committee member and sequentially served as committee Organizer, Vice Chair, and Chair. I now have colleagues and friends in the cannabis industry due to networking through the EC, NCIA’s other 13 committees, and my participation in NCIA conferences, regional events, and Lobby Days.
People in the cannabis industry have a passion for their work that is unlike any other I have seen. NCIA members are professionals in their field, working as medical doctors, Ph.D.s, accountants, lawyers, insurance agents, and marketing gurus, among others. Among these professionals, I felt seen and supported.
As a committee, the members were encouraged by the NCIA staff to pursue our interests and direction for the committee. There was no NCIA agenda for our work. As NCIA members, we were free to choose our path for committee projects.
As an officer, I had access to the other NCIA committee officers in our monthly all-committee call. Each committee reported their work-in-progress and announced finished projects in the form of webinars, blog posts, or white papers. The content of the website is driven by the members, and much of the content is publicly available. It takes an army to deliver cannabis products to consumers, and that army forms at NCIA.
I have listened in awe to NCIA members articulate their knowledge, and others have written beautifully. NCIA has a strong voice in Washington for the mission of federal legalization of cannabis. NCIA members write talking points on their areas of expertise and freely share cannabis knowledge for the betterment of the industry. Members have an opportunity to shape policy at the state, federal, and international levels.
Before NCIA, I was not aware of the reality of the steps for passing legislation in Washington. I have learned about the long process and have been encouraged to use my own voice, from contacting my state and federal legislators to participating in lobbying organized by NCIA at their annual Lobby Days in Washington. I walked from congressional to senate office to office with a team to talk with staffers. I found the staffers open to the conversation about legalizing cannabis, and I learned from a few of them. Approaching a lawmaker as a member of NCIA carries more weight than being a lone concerned citizen.
The cannabis industry has businesses struggling to remain afloat, and membership revenue has declined. If your company is not an NCIA member, ask yourself if you are willing to lose your opportunity to shape the future of the cannabis industry. Then, sign up for membership and make a difference.
California Cannabis Regulations: From Policy to Practice | Policy Matters | 02.08.24
Illuminating California’s Cannabis Regulations: Insights from Industry Leaders
Welcome to the fourth edition of our esteemed Policy Matters series, where we embark on a journey through the intricate landscape of California cannabis regulations. This series, made possible by the collaborative efforts of the National Cannabis Industry Association (NCIA) and its dedicated Policy Co-Chairs, Khurshid Khoja of Greenbridge Corporate Counsel and Michael Cooper of MadisonJay Solutions, serves as a beacon of insight and discourse in the ever-evolving landscape of cannabis regulation.
Building upon the foundational discussions initiated by our previous editions, this installment shines a spotlight on California’s pioneering strides in cannabis policy. In this blog post, we’ll delve deep into the dialogues and revelations shared during the recent webinar broadcast hosted by the NCIA, exploring the multifaceted dynamics of policy-making and enforcement in one of the nation’s most influential cannabis markets with Nicole Elliott, Director of the California Department of Cannabis Control.
Brian Gilbert, Deputy Director of Events and Education at NCIA, set the stage for the discussion, emphasizing the importance of dialogue and collaboration in navigating the complexities of California cannabis regulations. With California serving as a focal point, the webinar delved into the multifaceted aspects of cannabis policy and enforcement.
Understanding Cannabis Policy in California & Journey to the Role
Kicking off the conversation by recognizing the pivotal role of Nicole as one of the longest serving and most experienced cannabis regulators in the country, Khurshid & Michael expressed gratitude for her contributions to the industry. Nicole then shared her journey from local government to cannabis regulation, highlighting her commitment to social justice and equity. Her firsthand experiences with the criminal justice system underscored the importance of inclusive policies and community engagement in shaping regulatory frameworks.
An emphasis was placed on the significance of California’s regulatory evolution from a pioneering medical marketplace and its impact on industry inclusivity and diversity. From supporting legacy operators to promoting market stability, California’s regulatory efforts have paved the way for innovative initiatives like the Appalachians of Origin program, reflecting a commitment to equitable industry growth.
Enforcement Strategies and Real California Cannabis Campaign
Throughout the conversation, Nicole emphasized the importance of aggressive enforcement strategies to combat the illicit market effectively. California’s Unified Cannabis Enforcement Task Force spearheads enforcement efforts, targeting illegal activities such as labor trafficking and environmental contamination. The introduction of the Real California Cannabis campaign aims to shift consumer purchases to legal markets, fostering accountability and consumer safety.
Commitment to Social Equity and Compliance
At a pivotal moment, Nicole Elliott acknowledged historical inequities in the cannabis industry, advocating for initiatives beyond licensing solutions. Fee waivers and promising practices are key components of California’s social equity programs, promoting inclusivity and supporting operators from marginalized communities.
With consumer safety at the forefront, the Department of Cannabis Control prioritizes compliance and transparency in enforcement actions. Operators must adhere to regulations to ensure product safety, with penalties imposed for non-compliance. Transparent enforcement actions empower operators to uphold regulatory standards and foster consumer trust.
Challenges and Opportunities, Partnerships and Collaboration
The influx of hemp-derived cannabinoid products presents regulatory challenges at the federal and state levels. Collaborative efforts between regulators and industry stakeholders are essential to address public health concerns and ensure regulatory compliance. Federal rescheduling efforts and cultivator regulations further underscore the need for adaptive regulatory frameworks that prioritize consumer safety and industry viability.
The webinar highlighted the importance of partnerships and collaboration in addressing regulatory challenges and fostering a safe and thriving cannabis market. Organizations like the Cannabis Regulators Association (CANNRA) play a pivotal role in facilitating dialogue and sharing best practices among regulators and industry stakeholders.
Curtains Drawn: Reflecting on Insights, Looking Forward to Action
As we draw the curtains on yet another insightful edition of our Policy Matters series, we extend our heartfelt gratitude to our readers, esteemed speakers, and the unwavering guidance of NCIA’s Policy Co-Chairs, Khurshid Khoja and Michael Cooper. Their steadfast commitment to fostering dialogue and collaboration has been instrumental in shaping the discourse surrounding cannabis regulation and policy.
To delve deeper into these discussions and gain comprehensive insights on California cannabis regulations, we encourage you to view the complete recording of the webinar on our YouTube channel. There, you’ll find a wealth of information and perspectives from our esteemed speakers, shedding light on the complexities and opportunities within the California cannabis regulatory landscape.
From the corridors of Maryland to the rugged landscapes of Maine, and the vibrant markets of Michigan and California, each edition has illuminated the diverse spectrum of regulatory frameworks and industry dynamics shaping the cannabis landscape. As we eagerly anticipate future editions, let us continue our pursuit of knowledge, empathy, and innovation, forging a path towards a more equitable and prosperous cannabis industry for all stakeholders involved.
California Stakeholder Summit: Bridging Policy and Practice
We hope you’ve made plans to join us for our California Stakeholder Summit, taking place later this month on Thursday, February 22nd in Sacramento, CA. This event promises to be a pivotal moment for stakeholders across the California cannabis industry as we convene to explore topics including proposed state legislation affecting hemp-derived cannabinoid products and the impact of federal rescheduling on state-legal markets.
Nicole Elliott will be speaking on a panel alongside Congresswoman Barbara Lee (D-Oakland) and moderated by NCIA Director of Government Relations Michelle Rutter Friberg. Together, they will delve into the complexities of federal rescheduling and its implications for California’s cannabis regulations and dynamic marketplace.
Join us as we bridge the gap between policy and practice, forging meaningful connections and driving forward progress in one of the nation’s most influential cannabis markets. Don’t miss this opportunity to be part of the conversation shaping the future of cannabis regulation in California and beyond. Register now to secure your place at the California Stakeholder Summit 2024.
Navigating the Cannabis Landscape: Federal Cannabis Reform Outlook for 2024
A month into 2024, Congress is (still) grappling with a number of urgent, must-pass bills related to issues like border security, aid for Ukraine and Israel, and the federal budget. At a time when the government seems more dysfunctional than ever, it’s important to remember that this chaos results in cannabis issues (and unfortunately, many others) having difficulty in gaining traction in Congress. As a result, cannabis legislation and priorities have been slow moving so far this year- but I feel confident that there’s light at the end of the tunnel!
SAFE Banking
To recap: the ever-elusive SAFE Banking Act was reintroduced in 2023 by Senators Jeff Merkley (D-OR) and Steve Daines (R-MT) alongside Representatives Earl Blumenauer (D-OR) and Dave Joyce (R-OH). Soon after, the Senate Committee on Banking, Housing, and Urban Affairs held a hearing titled “Examining Cannabis Banking Challenges of Small Businesses and Workers” discussing both the bill and the topic of cannabis banking broadly.
As the momentum for SAFE Banking increased, so did some Senators’ concerns– primarily surrounding a provision that would bar federal banking regulators from taking discriminatory enforcement action against any industry.
As a result, an updated version of the bill called the SAFER (Secure and Fair Enforcement Regulation) Banking Act was introduced, marked up by the Committee, and passed out of Committee by a vote of 16-14 in late September 2023.
That brings us to 2024. Although SAFER has not been scheduled for a floor vote yet, NCIA is cautiously optimistic on its chances this year — whether that be as a standalone bill or attached to another larger financial services related package. That being said, the bill will undoubtedly face an uphill battle no matter how it arrives at the GOP-controlled House of Representatives.
Other Congressional News
Outside of SAFE(R) Banking, there has been some additional congressional cannabis news in 2024 including a Senate letter urging descheduling, a bicameral letter regarding Chinese-related illicit grow operations, and a new Congressional Research Service (CRS) report on the impact of moving cannabis from Schedule I to III in the federal Controlled Substances Act.
In late January, Senators Elizabeth Warren (D-MA) and John Fetterman (D-PA), led nine of their Democratic colleagues (including Senate Majority Leader Chuck Schumer [D-NY]), in sending a letter to Attorney General Merrick Garland and Drug Enforcement (DEA) Administrator Anne Milgram. The letter urged Milgram and Garland to remove marijuana from Schedule I of the Controlled Substances Act entirely, commonly known as descheduling.
Then, just days ago, Senators Joni Ernst (R-IA) and Angus King (I-ME) alongside Congressmen Pete Sessions (R-TX), Jared Golden (D-ME), and David Valadao (R-CA) led 48 of their colleagues in calling on Attorney General Merrick Garland to prevent any national security risk and end any illicit human trafficking connected to Chinese-linked marijuana farms in the United States.
In the bipartisan, bicameral letter, the lawmakers pointed out that Chinese nationals (some with potential ties to the Chinese Communist Party), are operating marijuana farms across the country and even potentially engaging in human and drug trafficking in conjunction with these operations. The lawmakers asked the Department of Justice for a briefing on the topic by the end of the month and posed several specific questions for the agency.
In mid-January, the Congressional Research Service (CRS) released a new report titled “Legal Consequences of Rescheduling Marijuana” that primarily focused on “Legal Consequences If Marijuana Moved to Schedule III” and considerations for Congress. CRS works for members of Congress and their committees and staff on a confidential, nonpartisan basis and is highly regarded here in Washington, D.C.
Biden Administration
In 2022, the Biden Administration announced that it would ask the Secretary of Health and Human Services (HHS) and the Attorney General to initiate the administrative process to review how marijuana is scheduled under federal law.
As a result, in August 2023, news broke that the Department of Health and Human Services (HHS) recommended to the Drug Enforcement Administration (DEA) that cannabis be rescheduled and placed in Schedule III, meaning that it has moderate to low abuse potential, a currently accepted medical use, and a low potential for psychological dependence. Since then, the DEA has been conducting their review of where marijuana should be placed in the Controlled Substances Act, which will then be followed by a public comment period.
To be clear, NCIA supports ending the criminalization of our industry by removing cannabis (including THC) from the federal Controlled Substances Act altogether so that our businesses are treated like all other lawful American businesses. That being said, it’s likely that the DEA will follow the HHS recommendations and choose to place marijuana in Schedule III.
While NCIA continues to draft our response to the inevitable announcement — whatever it may be — we also want to hear from our members about their views on this critical issue. If you are a member of NCIA, check your inbox for a link to our online survey in order to make your voice heard. If your business isn’t yet a member but you want to get off the sidelines of the cannabis reform movement, join today! NCIA is proudly the only organization focused on representing independent businesses in our nation’s capital and the work we do moving policy reforms forward is only possible because of the hundreds of businesses that make up our membership.
It goes without saying that 2024 is shaping up to be a big one for federal cannabis policy reform. Stay connected and engaged by attending one of our upcoming Stakeholder Summits where you can engage and learn from state officials, federal policymakers, and even me!
If you really want to play a bigger role in advancing cannabis policy reform, we hope you’ll also join us in Washington, D.C. for our 12th Annual Cannabis Industry Lobby Days this May. See you there!
Member Blog: Cannabis Convenience – Exploring the Rise of Delivery Services in Local Markets
Remember the long lines and awkward whispers at the dispensary? Those days are fading faster than you can say “indica.” Cannabis delivery services are popping up around the corner, delivering your favorite flower, edibles, and more right to your door. This boom isn’t just about convenience, though. It’s about changing laws, new technology, and a growing desire for discreet, easy access to cannabis.
What’s particularly intriguing is the role of legislation in shaping this landscape. For instance, California voters approved Prop 64 or the Adult Use of Marijuana Act, allowing adults 21 yrs or more to legally grow, possess, and use cannabis for non-medical purposes. This state act not only welcomed statewide legalization but also allowed its 58 counties, including the city of Sacramento, the autonomy to develop their policies and regulations around cannabis retail, manufacturing, and cultivation. This decentralized approach has been instrumental in fostering the growth and diversity of California’s cannabis market, setting the stage for the rise of innovative delivery services.
So, what’s driving this surge in cannabis delivery service? In this article, we’ll dive into this question and discover how delivery services are not just changing the face of cannabis retail but also influencing consumer behavior and nurturing a sense of community among cannabis enthusiasts.
What is Cannabis E-commerce?
Cannabis e-commerce refers to the online retailing of cannabis products. This type of e-commerce operates within the legal frameworks of regions where cannabis is legally permitted for medicinal or recreational use. It involves various products derived from the cannabis plant, such as dried flowers, oils, edibles, and other related merchandise.
In cannabis e-commerce, consumers typically browse an online platform or website that lists available cannabis products. These platforms provide product descriptions, potency levels, usage instructions, and pricing information. Consumers can select products, add them to a virtual cart, and purchase online. The purchased items are then delivered to the consumer’s location, subject to legal regulations regarding delivery and distribution.
But if you are not sure which cannabis seller to trust, look for a seller who prioritizes safe, reliable, and convenient access to a diverse selection of cannabis products. For instance, Nexus Delivers in Sacramento is a notable choice to explore. Their dedication to quality, safety, and variety sets them apart as a trusted option in cannabis e-commerce.
Driving Forces Behind the Rise of Cannabis Delivery
1. Convenience and Discretion
Cannabis delivery brings your order discreetly to your door, on your schedule. Perfect for busy bees or privacy seekers, it’s the hassle-free high you crave. No crowds, no awkward stares, just pure convenience and the freedom to enjoy at your own pace.
Plus, discreet packaging and secure payment methods are essential components of this aspect. It involves ensuring that all transactions and deliveries are conducted with the utmost confidentiality, protecting consumers’ privacy.
2. Enhanced Product Selection and Information
Online platforms boast wider product selections compared to local dispensaries, often presenting detailed descriptions, reviews, and educational resources. This empowers consumers to make informed choices, discover new strains and products, and compare prices with transparency.
So, blast off from the dispensary doldrums and dive into the boundless knowledge and options offered by delivery – your perfect bud awaits.
3. Accessibility and Inclusivity
Accessibility means that consumers, regardless of their location, can easily browse and purchase cannabis products online. It breaks down geographical barriers, enabling those in remote areas or with limited mobility to access the benefits of cannabis.
Inclusivity goes beyond geographical access and emphasizes catering to a diverse clientele. It involves offering a range of products to suit various preferences and needs, including those seeking medicinal benefits. This means sellers can reach a broader audience and sell more.
4. Competition and Market Expansion
Delivery services play a pivotal role in fostering competition and driving market expansion in the cannabis industry. They act as catalysts, sparking a cycle of benefits for both businesses and consumers. By offering convenient and efficient delivery options, dispensaries are compelled to compete vigorously.
This competition has a twofold effect. Firstly, it exerts pressure on prices, forcing dispensaries to lower their rates to remain competitive. Secondly, it incentivizes dispensaries to enhance the quality of their cannabis products and elevate their customer service standards. As a result, consumers enjoy more affordable options, a wider array of top-notch products, and superior service.
Data and Marketing Opportunities
Delivery platforms gather valuable data on user preferences and consumption patterns, enabling targeted marketing and product development. This information forms the foundation for targeted marketing strategies. Dispensaries can personalize customer experiences, offering tailored product recommendations that align with individual tastes and needs.
Additionally, businesses can identify specific demographics and market segments, allowing them to effectively develop and fine-tune their product offerings to cater to these diverse groups.
Evolving Regulatory Landscape
Legitimate and licensed delivery services are emerging, and this transformation is creating a safer and more accountable cannabis industry.
These licensed delivery services play a crucial role in addressing various concerns. They prioritize safety by implementing robust age verification procedures, ensuring that only adults have access to cannabis products. Additionally, these services are actively involved in educational initiatives, promoting responsible consumption.
Conclusion
Remember, it’s not just about avoiding awkward stares at the dispensary; it’s about unlocking a universe of options from your couch. As this market blossoms, let’s keep it chill, responsible, and full of delicious possibilities. After all, who wouldn’t want a world where bud travels to you?
We appreciate your interest and hope you found this article valuable.
The Cannabis Risk Management Series: Cannabis Risk in Retail – The Thorny Issue of Theft Claims
Welcome back to the second chapter of our insightful Cannabis Risk Management series from Valerie Taylor with NCIA Blooming Member The Liberty Company Insurance Brokers. In our inaugural blog, we meticulously examined the art and science of cannabis cultivation, dissecting the unique risks and unveiling strategies to safeguard your valuable assets. Now, our expedition leads us to the dynamic retail sector, where the shadows of theft claims cast a challenging hue on the landscape.
The Nuances of Cannabis Retail Risk
Cannabis retail, often hailed as the face of the cannabis industry, pulsates with its own set of challenges, and at the forefront is the persistent threat of theft claims. In this segment, we delve deep into the intricate risks associated with cannabis retail, emphasizing the need for a robust risk management strategy.
While the theft of cash and actual cannabis products remains a primary concern, the spotlight extends to the vulnerability of operational assets. Tangible tenant improvements (displays, lighting, vault, and security systems), and other essential equipment, constitute not just commodities, but the operational pulse of a cannabis retail space. The financial ramifications of losing such assets extend beyond the immediate value of the stolen item, potentially disrupting the entire business operation.
Protecting against theft demands a proactive stance that transcends traditional security measures. To fortify your retail space, embracing cutting-edge technologies becomes imperative. Smart safes, equipped with biometric access and RFID tagging for inventory offer significant theft deterrence of cash. In general, they can contribute to a seamless inventory management system, minimizing the impact of potential theft incidents.
3. Advanced Surveillance Systems: The Eyes and Ears of Security
Enhancing security measures involves a comprehensive approach, and advanced surveillance systems play a pivotal role. Beyond conventional CCTV, modern systems with facial recognition, real-time monitoring, and integrated analytics provide a more sophisticated layer of defense. These technologies not only deter theft but also offer valuable insights for ongoing risk management.
Mitigating Theft Risks in Cannabis Retail
1. Community Engagement and Public Awareness: Forging Collective Vigilance
Effective theft prevention extends beyond the physical boundaries of the store; it involves creating a community-driven shield against potential threats. Establishing strong bonds with the local community can serve as a natural deterrent. Positive relationships and community engagement foster a sense of shared responsibility for the safety of the retail space, creating a formidable barrier against potential thieves.
2. Employee Training and Incentives: Fortifying the Front Lines
Empowering your staff with the skills and knowledge to identify and prevent theft is a cornerstone in fortifying your retail space. Implementing comprehensive training programs that educate employees on recognizing suspicious behavior, coupled with incentives for maintaining a secure environment, forms a powerful defense strategy against theft.
3. Insurance Tailored to Retail Risks: Beyond Standard Coverage
While standard insurance policies offer a foundational level of coverage, the dynamic nature of cannabis retail necessitates a bespoke approach. Collaborating with a seasoned insurance advisor specializing in cannabis is not just advisable, but paramount. A tailored insurance policy for retail should go beyond protecting the products; it should encompass the essential equipment components for daily operations, ensuring a comprehensive shield against potential financial losses.
4. Data-Driven Risk Analysis: Navigating the Digital Landscape
Harnessing the power of data is a crucial aspect of modern risk management. Utilizing data analytics and monitoring tools allows retailers to identify patterns, potential vulnerabilities, and areas of improvement in their security infrastructure. This data-driven approach not only aids in theft prevention but also enhances overall operational efficiency.
As we prepare for our next exploration into the distribution sector, where we’ll unravel the complexities of risks involving theft, auto incidents, and more, I encourage you to delve deep into the intricacies of cannabis risk in retail. Stay tuned for a wealth of insights and strategies to navigate the multifaceted challenges at every stage of your cannabis business journey.
For more information, please reach out toValerie Taylor, Vice President (National Cannabis Practice Leader), Liberty Company Insurance Brokers.
Committee Blog: Navigating Cybersecurity Risks in the Cannabis Industry
Cannabis Industry Cybersecurity threats are on the rise, and organizations that don’t take a proactive approach to information security may see themselves increasingly targeted. In this blog, members of National Cannabis Industry Association’s Risk Management & Insurance (RMIC) details key considerations to help cannabis organizations enhance their network security. Throughout the blog there are hyperlinks for further information on certain topics, and for those organizations just getting started on their cannabis industry cybersecurity journey, two free resources to consider investigating are the Small Business Administration’s (SBA) Cybersecurity Guide and the Cybersecurity & Infrastructure Security Agency’s (CISA)Cyber Essentials Starter Kit.
A Business Case for Cybersecurity Investment.
Like with any business investment, increasing cyber defense resources must provide a sufficient ROI for the business. When considering cybersecurity, it may be best to define that as Regret Of Inaction. Consider that according to IBM’s2023 Cost of a Data Breach Report the average cost of a breach has reached an all-time high of $4.45M. The old adage, “an ounce of prevention is worth a pound of cure” is certainly applicable to security measures.
Cybersecurity risks are not just applicable to large enterprises,Accenture’s Cybercrime study reveals that nearly 43% of cyber-attacks are targeted at small and medium-sized businesses (SMBs), and 60% of small businesses close within6 months of being hacked.
Cannabis Industry Cybersecurity Starts with People
Any cultural shift at an organization needs to start from the top, and that includes security. Security culture needs to be driven from the top. Adopting proper policies and procedures to properly safeguard organization networks and personnel is key. This includes regular employee training. As many as95% of attacks are caused by human error.
Being a Victim Stinks- Elevate Your Basic Cyber Hygiene
The National Cybersecurity Alliance just completedCybersecurity Awareness Month, where they stressed four of the key principles which can help better secure organizations. We’ll touch on each below, and for additional best practices check out the Cannabis Information Sharing & Analysis Organization’s (Cannabis ISAO)blog from 420 where they asked 4 cybersecurity experts to compile 20 tips for the cannabis industry.
Recognize and Report Phishing. A best practice is to set up a channel in your organization’s chat platform where employees can share screenshots of phishing attempts to raise awareness.
Update software. Don’t forget to include all of the connected Internet of Things (IoT) devices throughout the organization
Navigating Cyber Insurance
The world of business insurance, especially in the cannabis sector, can be quite complex. However, with the insights provided here, you can navigate your policy purchasing process with confidence and ensure your business is fortified against potential risks. By understanding policy forms, adhering to safeguards, and adapting to local regulations, you can lay a resilient foundation for your business’s growth and success.
“In Cannabis, we don’t get many options when it comes to cyber insurance providers, so it’s important we put our best foot forward when seeking or renewing cyber insurance policies. Work with your broker early to understand any changes upcoming to policies and the expectations being set by your insurers. When you can, hire a dedicated team that is focused on securing your digital estate, and leverage well known guidance frameworks such as NIST CSF, CIS Top 20, and HIPAA, and work with an independent party to verify your progress, which help keep your premium costs down long-term and reduce the risk of you having an incident that requires you to file a claim in the first place.”- Chris Clai, Director of Information Security, Green Thumb Industries
Stay up to date on Cannabis Industry Cybersecurity threats and trends
Cyber criminals are opportunistic and will look for any advantage to beat cannabis industry cybersecurity systems or trick employees. Holidays can be a prime time for attacks because of employees taking time off and being more distracted than usual. Holidays and major newsworthy events can also lead to a spike in phishing and other scam activities. In the same way FEMA often warns people to look out for scams after natural disasters, consider what industry news may cause a lot of buzz that could also be used in phishing campaigns. Announcements related to a new state legalizing adult use, or legislative updates around SAFER Banking could all be hiding malicious links.
Being involved in communities that actively sharing information about ongoing threats can be very beneficial. A member of the Cannabis ISAO recently shared details of cash management company who had been avictim of a Business Email Compromise (BEC) which led to fraudulent wire transfer requests being sent out. Days later MJBizDaily reported a similar incident which resulted in the loss of funds totalling nearly $650K for MariMed. Keeping up to date on these types of incidents can help inform employees of the current threat landscape, and boost organizational resilience.
Incident Response
Responding to a cybersecurity incident is not the first time you want to be considering what your response processes are. In response to the recent high profile MGM and Caesars ransomware incidents, National Cyber Security Alliance Executive Director Lisa Plaggemierstated “the best way to deal with a ransomware attack is to practice having one, to do tabletop exercises.” Having plans and procedures in place are important, but it’s equally important to test and validate those plans.
In the event of an incident, it may be necessary to utilize a digital forensic vendor. Consider having one on retainer, or at least establishing a relationship ahead of time to enable a speedy response. In some cases your cyber insurance company may have preferred vendors for this type of work.
Conclusion
The RMIC advocates for a proactive approach to risk management that emphasizes the importance of informed decision-making. By evaluating an insurer’s claims experience, comprehending legal nuances, and staying attuned to the evolving threat landscape, you can empower your business with robust protection, ensuring a resilient foundation for growth and success.
NCIA Welcomes New and Returning Members to its Board
The National Cannabis Industry Association (NCIA) is thrilled to unveil the distinguished individuals selected to join its board for the 2024-26 term. Comprising leaders and innovators from various sectors, the newly appointed board members bring a wealth of expertise and commitment to shaping the future of the cannabis industry.
As the CEO of NCIA Evergreen Member FundCanna, Adam Stettner, with extensive experience beyond cannabis, advocates for strong industry representation, emphasizing the need for varied perspectives, political savvy, and insights from a nationwide service provider, eager to advance the collective cause.
Josh Wurzer, Co-Founder and Chief Compliance Officer at SC Labs, is a pioneer in cannabis testing, having commercially tested medical cannabis since 2008. With roles on various industry advisory groups and boards, including the California Cannabis Industry Association and the U.S. Pharmacopeia Cannabis Expert Panel, Josh brings unparalleled expertise in cannabis science to the NCIA board, championing quality control and safety.
Incumbents Returning for Another Term
The Annual Nominating Committee, consisting of sector committee chairs and select board members, has also appointed six esteemed incumbents for another two-year term:
This selection process, guided by transparency and inclusivity, is a testament to NCIA’s commitment to representing the diverse voices within the cannabis industry.
Leadership for the Cannabis Community
NCIA, proudly recognized as the most inclusive and transparent association in the cannabis industry, emphasizes the significance of leadership chosen by its membership. Board members, selected through a thoughtful and democratic process, serve two-year terms, ensuring a continuous infusion of fresh perspectives.
The eight newly nominated board members will join their counterparts currently serving in the 2023-25 term. This blend of experienced incumbents and dynamic newcomers underscores NCIA’s dedication to fostering an environment that encourages growth and innovation.
A Commitment to Values
As an organization, NCIA is steadfast in upholding the values expected by its members. The board, with its diverse composition, reflects the industry’s dynamism and mirrors the inclusive nature of the association.
For a detailed overview of the board members and their impressive bios, please visit our Board Members Page.
NCIA remains at the forefront of championing the cannabis industry’s growth and prosperity. The 2024-26 board is poised to lead with vision and dedication, ensuring that NCIA continues to be a driving force in shaping the future of cannabis.
Member Blog: Cannabis Industry Predictions for 2024
Presented by the Cannabis Team with BGM, a Seedling Member of NCIA
As we usher in the transformative year of 2024, the cannabis industry stands at the threshold of unprecedented growth and evolution. The Cannabis Team at BGM, a dedicated Seedling Member of the National Cannabis Industry Association (NCIA), invites you to explore the latest insights and predictions for the cannabis sector in their comprehensive blog post. This overview provides a glimpse into the changing landscape, legislative shifts, emerging market dynamics, and the multitude of opportunities and challenges that lie ahead.
Let’s look at the latest insights and 2024 predictions for the cannabis industry. This blog addresses the changing landscape, including regulatory shifts and market opportunities. Continue reading to explore the future of the cannabis industry and learn how your cannabis business can stay ahead in the coming year.
Growth and Expansion
In 2024, the global cannabis market is expected to experience substantial growth, fueled by emerging legal markets, innovative product offerings, and technological advancements. This growth presents opportunities and challenges, especially in navigating complex legal and regulatory landscapes.
Market Dynamics
Projected Market Growth: The U.S. cannabis market is projected to grow significantly. Retail cannabis sales could reach $53.5 billion by 2027, with adult-use sales growing more rapidly. States like New York are working on finalizing details to launch approved programs, contributing to this growth.
Technological Advancements: Blockchain and AI will likely revolutionize supply chain management and compliance tracking.
Product Innovation: The trend toward personalized cannabis products is expected to gain traction as consumers become more educated and discerning. Cannabis companies will likely continue tailoring their products to meet a wide range of individual needs and preferences. However, pre-rolls are projected to continue to be a top product sale item in 2024. As people progress in their exploration and knowledge of cannabis, we believe they will gravitate towards craft cannabis products, and artisanal flower, despite the enduring demand for low-cost and convenient options.
Legislative Predictions
Legalization: We foresee several additional states legalizing recreational cannabis in 2024. Federal legalization of medical or recreational cannabis appears to be a long way off, as demonstrated by the inability of the SAFE Banking Act to pass in Congress.
SAFE Banking Act: This continues to be a pivotal issue, with potential movement expected in 2024.
Federal Rescheduling: Anticipated action by President Biden could reshape the industry’s regulatory framework, impacting financial reporting and taxation.
State-Level Changes: States like Maryland, possibly followed by Pennsylvania and Ohio, may influence regional market dynamics and tax structures.
Industry Trends
Ancillary Services: As the industry grows, so does the demand for financial and ancillary services, highlighting the need for specialized accounting solutions and advisory services.
Canadian Market Resurgence: Canadian cannabis stocks may witness a revival, affecting cross-border financial transactions and investment strategies.
Global Influence: Germany’s role as a market catalyst emphasizes the importance of understanding international financial regulations in the cannabis sector.
State Trends
Maryland and Neighboring States: Maryland’s recent move to full legalization is expected to influence neighboring states. Analysts predict that Pennsylvania might follow Maryland’s lead. There’s also pressure on Virginia to get its program operational in 2024.
Vermont and Mississippi: Farmers in states such as Vermont and Mississippi, which have legalized cannabis, face challenges with federal regulations around hemp cultivation. The U.S. Department of Agriculture (USDA) has rescinded hemp licenses for some farmers who grow marijuana, reflecting the ongoing conflict between federal and state laws regarding cannabis.
New York: The New York Cannabis Control Board anticipates approving additional licenses in early 2024. We will wait to see the progress.
Continued Legalization Trends: More states are likely to embrace broader cannabis legalization, including CBD and Delta 8 THC, enhancing consumer accessibility across the U.S. This trend is driven by legal advancements, ongoing research, and shifting societal views.
To continue reading the full article and explore the remaining sections on Financial Implications, Technology and Data Management, Ethical and Social Considerations, Global Market Integration, and Risk Management, click here to visit BGM’s website. Your journey into the future of cannabis begins now.
Join the Cannabis Movement: Become an NCIA Member Today
As we delve into the transformative year of 2024 in the cannabis industry, it’s crucial to be part of a community that champions growth, innovation, and advocacy. The National Cannabis Industry Association (NCIA) stands at the forefront, shaping the future of the cannabis sector.
Why Join NCIA?
Network with Industry Leaders: Connect with like-minded professionals, industry leaders, and visionaries who are driving the cannabis industry forward. NCIA offers a platform for networking and collaboration that is unparalleled.
Stay Informed: Stay ahead of the curve with the latest insights, trends, and legislative updates. NCIA provides valuable resources and information, ensuring that you are well-informed about the dynamic landscape of the cannabis market.
Advocacy and Influence:Be part of a collective voice that advocates for sensible cannabis policies at the national level. As a member of NCIA, you contribute to shaping the regulatory environment and fostering a thriving, responsible cannabis industry.
Who Should Join?
If you are a cannabis business owner, entrepreneur, investor, or industry enthusiast, NCIA is your gateway to a community that understands the unique challenges and opportunities within the cannabis sector. Whether you’re navigating legislative changes, seeking business connections, or staying informed about market dynamics, NCIA is the ultimate resource.
How to Join:
Becoming an NCIA member is simple. Visit our membership page to explore the benefits and choose the membership level that aligns with your goals. Join the community that is actively shaping the future of the cannabis industry.
Member Blog: Discovering Dank – Unraveling the Mystery of the Cannabis Plant’s Iconic Odor
For decades, cannabis enthusiasts and scientists alike have been intrigued by the distinctive scents emitted by various cannabis cultivars. Particularly, the question that has persisted among many is: which compounds are responsible for the potent gassy and skunky scents so often associated with cannabis?
Abstrax Tech, a frontrunner in cannabis research, has recently made headway in answering this question. Their innovative research, encompassing advanced techniques and collaborative efforts, has brought forward the discovery of an entirely new class of aromatics, Cannasulfur Compounds (CSCs). These compounds, as discussed in Abstrax Tech’s white paper, “The Science of Dank” are the key to understanding the much-debated gassy aroma of cannabis.
The Path to Discovery
To delve deep into the scent mysteries, Abstrax Tech combined advanced Gas Chromatography (GC x GC) with various detectors, allowing for a nuanced detection of compounds. Their collaboration with acclaimed cannabis growers, like Mario Guzman of Sherbinskis and Josh Del Rosso (the original breeder of OG Kush), equipped them with diverse cannabis samples to analyze.
The analytical journey led the Abstrax team to an exciting hypothesis. What if the gassy scent in cannabis is sulfur-based? The team noticed the common occurrence of sulfur compounds in other potently aromatic foods, such as durian and garlic. Validating this hunch, they detected significant correlations between the presence of sulfur compounds and the skunky scent across various cultivars.
Among the discovered compounds, one was identified as 3-methyl-2-butene-thiol or “prenyl thiol”, with others also containing the same functional group, the “prenyl” group. Subsequent chemical synthesis and testing confirmed their role in producing the characteristic scent of cannabis.
The Significance of Timing in Cannabis Growth
But it’s not just about identifying the compounds. Abstrax Tech further explored when these aromatic CSCs are produced during cannabis growth. Their findings were eye-opening. The CSC concentrations skyrocket towards the end of the growth cycle and peak during the curing process, only to decrease rapidly post-harvest. This discovery holds immense value for growers, emphasizing the criticality of timing and packaging to retain the prized scent for consumers.
Cannasulfur Compounds in Cannabis Extracts
Cannabis extracts, popularly consumed in various forms, also raised the question: Do these volatile CSCs survive the extraction process? The answer, as per experiments, is a resounding yes, but with a caveat. The extraction process has to be meticulously executed. Techniques involving cryogenic extraction and minimal heat post-processing proved successful in preserving these aromatic compounds. Meaning that, just like terpenes, heat and oxygen will cause degradation.
Benefits for Cannabis Vape Manufacturers:
For cannabis vape manufacturers, CSCs represent a monumental advancement in the quest for genuine cannabis experiences:
Authentic Flavor Profiles: CSCs can be integrated into vape cartridges, recreating the unique aromatic and flavor profile of cannabis but in a botanical (and legal) format.
Product Differentiation: Emphasizing the presence of these natural compounds can distinguish a brand in a crowded market.
Precise Flavor Replication: With CSCs, manufacturers can precisely replicate specific strain aromas.
Enhanced User Experience: Experienced consumers will get a more accurate cannabis flavor and aroma experience.
Consistency from Batch to Batch: Using CSCs ensures every user gets a similar authentic experience, batch after batch.
Conclusion
Abstrax Tech’s groundbreaking discovery of Cannasulfur Compounds in cannabis is a testament to the endless surprises the plant holds. While the quest to identify the compounds behind the iconic gassy aroma has found its answer, it’s clear that this is just the tip of the iceberg for cannabis research. With each revelation, cannabis continues to unveil its vast potential, promising a future of exciting research and discoveries.
Ready to dive deeper into the fascinating world of cannabis discoveries?
Join the National Cannabis Industry Association (NCIA) and connect with like-minded enthusiasts, researchers, and industry professionals. As an NCIA member, you’ll stay on the cutting edge of groundbreaking findings, just like Abstrax Tech’s exploration into Cannasulfur Compounds. Don’t miss out – click here to join NCIA now and be part of the thriving cannabis community shaping the future of the industry.
Elevate Your Dispensary’s Presence In 2024 Using These Promotion Tricks
As we step into 2024, it’s safe to say that the cannabis industry is not just growing; it’s thriving! The reports reveal that the number of medical marijuana dispensaries in the US has observed a 1.7% jump from the previous year- totaling 5,142 in 2022.
Moreover, the industry is expected to skyrocket, with a projected compound annual growth rate (CAGR) of 14.66% from 2023 to 2028, reaching a market value of US$67.15 billion by 2028. Isn’t that amazing?
In such a booming market, the potential to earn profits is enormous. But how can you capitalize on this opportunity and make your dispensary the go-to place for cannabis products?
Are you also wondering the same? If so, we’ve got you covered! We have compiled a list of effective promotion tricks to help you elevate your dispensary in 2024. Let’s explore them together!
Focus On Local SEO To Maximize Your Visibility
Have you ever noticed that some dispensaries seem to have a never-ending stream of customers while others struggle for the same despite offering similar products and services?
If yes, the reason for such a difference is the savvy use of Local SEO. According to statistics, 46% of people search for local businesses on Google. What’s even more surprising is that around 80% of these local searches result in conversion.
Let’s take a look at this using an example. Suppose you own a dispensary in Buchanan, MI. In that case, if you want your buchanan dispensary to be the talk of the town, you must focus on Local Search Engine Optimization. This includes several steps, and a few of them are given below:
Ensure your Google My Business (GMB) profile is complete and accurate. It includes up-to-date contact details, operating hours, and high-quality images.
Use relevant keywords in your business description, focusing on terms potential customers might use. For instance, “Dispensary in [Your City] such as Buchanan, MI.”
Create localized and reader-friendly content on your website, such as blog posts about community events or local cannabis news.
Have a mobile-friendly website, as most local searches are done on mobile devices.
Build local backlinks by collaborating with other local businesses and participating in community events. It will boost your local search rankings.
Provide Exclusive Deals On The Home Page
After fine-tuning your local SEO, your website homepage becomes a vital touchpoint for capturing visitor interest. Picture this: a potential customer, drawn in by your high search ranking, lands on your site and gets greeted with an offer they can’t resist. That’s the power of providing exclusive offers right on your homepage.
As a matter of fact, these offers do more than just grab attention. They provide compelling reasons for them to stay and explore the entire website. It’s like saying, “We value your visit, and here’s how we show it.”
Now, the question is- How can you craft deals that not only entice but also resonate with your audience? No need to worry; we’ve got you covered! Here are a few types of discounts/deals you can provide to your target customers:
First-Time Buyer Discounts: Offer a special discount for first-time customers to encourage them to make their initial purchase.
Loyalty Rewards: Create a loyalty program where repeat customers earn points that they can redeem as discounts on future purchases.
Seasonal Promotions: Use holidays and seasons like Black Friday, Christmas, and New Year with themed discounts or bundles.
Exclusive Access: Provide early access to new products or special editions for regular customers.
Referral Bonuses: Encourage customers to refer friends by offering them a discount or free product for each successful referral.
Bundle Deals: Create product bundles at a reduced price to promote purchasing new products.
Offer Multiple Purchase Options
It goes without saying that customers prioritize convenience above all, especially when it comes to purchasing options. That means, by providing multiple ways to buy cannabis and related products, you make each customer feel catered to, regardless of their buying preferences.
For instance, some customers prefer browsing online but enjoy the experience of picking up their orders in-store. On the other hand, some value the convenience of home delivery. By providing options like online ordering with in-store pickup, home delivery, and direct purchases at your location, you’re taking steps to enhance their shopping experience.
All in all, if your dispensary can effortlessly meet their needs, you’ll quickly become their go-to choice. Yes, it’s that easy! It builds a bridge of convenience and flexibility, leading to increased customer satisfaction and loyalty.
But there’s a catch – you must understand exactly what your customers want. For this, you can try the following tips:
Surveys and Feedback Forms: Regularly ask for customer feedback through surveys or feedback forms, either in-store or online.
Focus Groups: Conduct focus groups with a diverse set of customers to gather in-depth insights into their preferences and needs.
Customer Service Interactions: Keep track of common queries and requests received by your customer service team.
Sales Data Analysis: Examine your sales data to identify trends and popular products among your customers.
Observational Research: Observe customer behavior and preferences in-store to gain real-time insights into their shopping patterns.
Try Social Media Storytelling
Does your dispensary have a social media account? If so, think about what you often post. Typically, businesses post about product updates and promotions. However, social media is an excellent platform for building an emotional connection with your target audience by sharing compelling stories and experiences.
For example, you can create reels about the journey of your business. Or, post customer testimonials on how amazing your service or products are. This type of content allows your audience to connect with your brand on a more personal level, seeing it as more than just a dispensary but as a community pillar.
In essence, using storytelling as social media marketing helps create a loyal community that resonates with your brand’s values. When they see the dedication and passion behind your products, they feel an intrinsic part of your dispensary’s story.
Having said that here are some elements that you must include in your social media storytelling:
Ensure your stories reflect your brand’s genuine values and mission. Authenticity resonates with audiences.
Include interactive elements like polls, questions, or calls to action to encourage audience participation.
Use high-quality images and videos to make your stories visually compelling.
Create a story that evokes emotions, whether it’s joy, empathy, or inspiration.
Share content that is relevant to your audience’s interests and current trends.
Offer glimpses into the daily operations of your dispensary, showcasing the people and processes behind your products.
Say Yes To Event Sponsorship Opportunities
Saying ‘yes’ to event sponsorship opportunities can open doors you never knew existed. It’s about putting your brand in the spotlight but in a way that feels genuine and community-oriented.
Just imagine your dispensary in Buchanan sponsoring a local music festival, art show, or wellness fair. These events aid you to resonate with your target audience and also position your brand as an active and supportive member of the community.
It’s worth noting that event sponsorship isn’t just about adding your logo to a banner. It’s an opportunity to engage with potential customers face-to-face, showcase your products, and build a positive brand image.
When people enjoy an event and see your dispensary contributing to that experience, they associate those good vibes with your brand. It’s a powerful way to build trust and recognition, turning attendees into loyal customers who remember your name long after the event is over.
Now, you may ask: How to avail such opportunities? Here are a few things you can try:
Collaborate with Local Businesses: Partner with local businesses that share a similar customer base for joint sponsorship opportunities.
Network in Industry Events: Attend cannabis industry conferences, trade shows, and networking events to connect with organizers and other businesses.
Contact Event Organizers Directly: Reach out to organizers of local events, festivals, and community gatherings to inquire about sponsorship opportunities.
Join Local Business Associations: Become a member of local commerce chambers or business groups to access insider information on upcoming events.
Utilize Social Media: Engage with local event pages on social media and express interest in sponsorships.
Tap into Nostalgia Marketing
Have you ever noticed how certain smells, sounds, or sights can transport you back in time? For example, the aroma of fresh pine might remind you of winter holidays spent with family.
This is the essence of nostalgia marketing, a powerful yet underrated tool that can make your dispensary stand out in 2024. By tapping into the fond memories of your customers, you create an emotional connection that goes beyond the product itself.
Now imagine adding similar retro themes to your product lines or store decor. It could be as simple as playing classic tunes from different eras in your dispensary. These subtle nods to the past can evoke warm, nostalgic feelings in your customers, making their experience with your brand more memorable and personal.
Perhaps we can say that this marketing technique is not just a trend; it’s about creating a sense of familiarity and comfort. When customers associate your dispensary with good old memories, they’re more likely to return and share their experiences with others. It’s a unique way to build a loyal community around your brand.
Below are a few nostalgic marketing tips you can try for your dispensary:
Retro Product Packaging: Design your product packaging with a vintage or retro theme reminiscent of past decades.
Classic Strain Revival: Introduce or highlight classic cannabis strains that were popular in past decades.
Throwback Events: Host themed events celebrating different periods, inviting customers to dress up and enjoy era-specific activities and products.
Connect Via Podcasts
Finally, podcasts are another popular way to connect with audiences on a more personal level. Using this tool, you can dive deep into the world of cannabis, discussing everything from the latest strains to the ins and outs of responsible usage.
It’s not just about providing information; it’s about building a community. By featuring guest speakers, such as industry experts or satisfied customers, you add different perspectives and voices to your brand. This approach makes your dispensary more relatable and trustworthy.
In other words, starting a podcast gives you a platform to tell your brand’s story, share knowledge, and engage with listeners who share your passion for cannabis. It’s a unique way to establish your dispensary as an authority in the field while creating a loyal listener base.
With that in mind, here’s how you can start a podcast:
Define Your Niche: Decide on a specific focus for your podcast, like cannabis education, industry news, or strain reviews.
Get the Right Equipment: Invest in a good quality microphone, headphones, and recording software.
Plan Your Content: Outline your episodes, decide on formats (interviews, solo talks, etc.), and prepare talking points.
Record and Edit: Record your episodes and use editing software to refine the audio quality.
Choose a Hosting Platform: Upload your podcast to a hosting platform like Spotify, Apple Podcasts, or SoundCloud.
Promote Your Podcast: Share your podcast on social media, your website, and through email newsletters.
Final Thoughts
In 2024, standing out in the bustling cannabis market requires creativity and connection. By embracing these promotion tricks, your dispensary can attract customers while building a community. Just remember to engage with your audience and adapt to their evolving needs.
Puff, Pass, Prosper: The Insider’s Guide to Operating a Consumption Lounge | 12.20.23 | Committee Insights
The cannabis landscape is experiencing a swift evolution, with one particularly captivating facet garnering considerable attention—cannabis consumption lounges. In a recent webinar titled “Puff Past, Prosper: The Insider’s Guide to Operating a Cannabis Consumption Lounge,” (or Designated Consumption Establishment) hosted by the National Cannabis Industry Association (NCIA), industry luminaries and entrepreneurs convened to exchange experiences, insights, and forward-looking perspectives on the future of cannabis consumption spaces.
NCIA Voices: Insights from Industry Leaders
Brian Hart, a panelist and member of NCIA’s Retail Committee, serving as moderator kicked off the conversation by introducing himself, shedding light on his background in the cannabis industry. Notably, Hart is venturing into the world of hemp beverages with his latest project, Vitam Group. His insights into the challenges of starting a cannabis-related business added a valuable entrepreneurial perspective to the discussion. Another panelist, Brian Anderson, an architect with 29 years of experience and Founding Partner of Anderson Porter Design, shared his extensive involvement in various facets of the cannabis space, including cultivation, manufacturing, and retail. Anderson’s emphasis on the design and architecture of consumption lounges brought a unique angle to the conversation. Richard Fleming, the founder and CEO of Altered State Cannabis Company, provided a glimpse into his journey from the legacy caregiver market to plans for a designated consumption establishment. Fleming’s personal story exemplified the transformative power of the cannabis industry. Ace Castillo, the founder and CEO of Banyan Tree Dispensary in Fresno, California, brought a regional perspective to the discussion. His journey from operating a dispensary under Prop 215 to his current ventures highlighted the evolution of the industry and the importance of enhancing customer experiences in consumption establishments.
Legal Considerations and Operational Challenges
The webinar delved into the intricate legal considerations and operational challenges associated with consumption lounges. The panelists emphasized the diverse landscape of rules and regulations across states and localities, with licensing requirements varying significantly. Federal challenges, including 280E taxes, posed additional hurdles for cannabis businesses.
State-Specific Insights
The discussion took a deep dive into the Californian market, where the Department of Cannabis Control does not directly regulate consumption lounges. Instead, local jurisdictions play a crucial role in granting licenses. The complexity of navigating both local and state regulations was highlighted, shedding light on the intricacies of the Californian cannabis landscape.
Insights into Cannabis Consumption Lounges
The panelists provided valuable insights into the definition and various forms of consumption lounges, ranging from health and wellness spaces to venues hosting diverse events. The panel stressed the importance of defining the underlying business model, reflecting the diverse approaches to operating such establishments.
Customer Experience and Community Building
Creating a positive customer experience emerged as a central theme, with an emphasis on dynamic and engaging environments. Brian Anderson suggested incorporating community spaces and rooms for rent, contributing to the overall positive atmosphere. The concept of consumption lounges as community spaces was explored, highlighting the potential for meaningful social connections.
Urban Environments and Cultural Shifts
Brian Anderson, leveraging his architectural background, provided insights into the demand for community spaces in urban environments. The discussion touched on the cultural shift in the perception of cannabis, emphasizing the role of consumption lounges in normalizing cannabis use. The positive social activity aspect of cannabis was underscored as a key contributor to changing societal perceptions.
Advocacy for Equal Treatment and Responsible Consumption
Advocacy for equal rights and privileges for cannabis consumers compared to alcohol consumers was a recurring theme. The panelists emphasized the responsibility of stakeholders in promoting responsible cannabis consumption. The importance of destigmatizing cannabis through collective efforts was highlighted, with designated consumption establishments playing a pivotal role in this cultural shift.
Community Engagement and Benefits
Engaging with the local community emerged as a critical factor for the success of cannabis-related businesses. Dispelling stereotypes and contributing positively to local economies were emphasized as essential components. The concept of community rooms and public benefits was discussed, showcasing the potential positive impact of cannabis businesses on the broader community.
Funding Challenges and Insurance Considerations
The challenges faced by social equity applicants in securing funding for their businesses were acknowledged. Richard Fleming shared insights into the difficulties of obtaining insurance coverage for consumption lounges, stressing the need for comprehensive coverage and collaboration with underwriters.
Conclusion
In conclusion, the NCIA webinar provided a comprehensive exploration of the complexities, challenges, and opportunities associated with cannabis consumption lounges. The webinar illuminated the legal intricacies, operational considerations, and cultural impacts of consumption lounges. It underscored the importance of responsible consumption, community engagement, and advocacy for equal treatment. As the cannabis industry continues to evolve, the webinar served as a compass, guiding stakeholders toward a positive and inclusive future.
In the spirit of collaboration and collective responsibility, the webinar left participants with a renewed sense of purpose. The journey toward destigmatizing cannabis and integrating consumption lounges into mainstream culture requires ongoing dialogue, engagement, and a commitment to positive change. As we bid farewell to the NCIA’s final #IndustryEssentials educational webinar of 2023, the stage is set for the industry to continue prospering, adapting, and shaping a future where cannabis consumption lounges are not just spaces of leisure but catalysts for positive societal transformation.
Unlock the Full Story: Watch the Full Webinar on NCIA’s YouTube Channel Today
To experience the complete coverage and immerse yourself in the nuances of operating a cannabis consumption lounge, we encourage you to watch the full webinar video on our official NCIA YouTube channel. Whether you’re an industry professional, an aspiring entrepreneur, or simply curious about the evolving cannabis landscape, this webinar offers a comprehensive guide to the challenges, opportunities, and cultural impacts associated with designated consumption establishments.
Unlocking Opportunities: Join NCIA for the 2024 Stakeholder Summit Series
As we wrap up our exploration of cannabis consumption lounges, we invite you to become an active participant in shaping the future of the cannabis industry. Joining the National Cannabis Industry Association (NCIA) offers an array of benefits, including exclusive access to invaluable networking opportunities, educational resources, and a vibrant community of industry professionals.
Networking Opportunities: NCIA provides a platform for you to connect with like-minded individuals, industry leaders, and experts in the cannabis space. Networking is a powerful tool for staying informed, discovering new opportunities, and fostering collaborations.
Educational Resources: Stay ahead of industry trends, legal developments, and best practices with access to exclusive educational resources. NCIA’s commitment to industry education ensures that you are well-equipped to navigate the evolving landscape of the cannabis market.
Advocacy and Representation: By joining NCIA, you contribute to a unified voice advocating for the cannabis industry. NCIA actively engages in policy discussions, lobbies for favorable regulations, and works towards creating a conducive environment for cannabis businesses to thrive.
NCIA’s 2024 Stakeholder Summit Series
Looking forward, NCIA is thrilled to announce the 2024 Stakeholder Summit Series, a collection of events taking place across four different markets throughout the first quarter of 2024 leading up to the 12th annual Cannabis Industry Lobby Days. These summits are designed to provide deep insights, foster meaningful connections, and address the critical issues facing the cannabis industry.
Membership Perks: NCIA members enjoy complementary access to all events based on their membership level.
Exclusive Pricing: Take advantage of discounted pricing on all sponsorship opportunities through the end of the year.
Registration Deadline: Prices for sponsorship opportunities are set to increase on January 1, 2024. Act now to secure your spot at the 2024 Stakeholder Summit Series.
Choose the membership level that aligns with your needs and aspirations.
Complete the online application to kickstart your journey as an NCIA member.
Act Now to Secure Your Spot
If you are passionate about the cannabis industry, committed to fostering positive change, and eager to stay at the forefront of industry developments, now is the perfect time to join NCIA. By becoming a member, you not only invest in your professional growth but also contribute to the collective strength of the cannabis community.
Don’t miss out on the opportunity to attend the 2024 Stakeholder Summit Series, connect with industry leaders, and gain insights that will propel your cannabis-related ventures. Act before the sponsorship pricing deadline on January 1, 2024, to lock in exclusive rates and maximize your visibility at these transformative events.
Join NCIA today and embark on a journey of knowledge, connection, and advocacy within the dynamic landscape of the cannabis industry. Your participation matters, and together, we can shape a future where the cannabis community thrives and prospers.
Beyond the Doorstep: Mastering Risk Management in the Cannabis Delivery Revolution
In the fast-paced world of cannabis retail delivery, where popularity and convenience of home delivery mingles with the complexities of compliance, risk management takes center stage. As experts in the field of cannabis insurance, we recognize that the journey from shelf to doorstep is not just a logistical dance but a tightrope walk of potential hazards. In this blog post, we navigate through the labyrinth of risks in cannabis delivery, honing in on the often-underestimated challenges faced by the delivery workforce.
The Green Route: Cannabis Delivery Takes Center Stage
With the rising demand for cannabis products and the evolving legal landscape, cannabis delivery services have remained the heartbeat of the industry. The convenience of having products delivered directly to the doorstep is undoubtedly a game-changer. Furthermore, in the post-pandemic era, the surge in home delivery services has not only reshaped consumer behavior but has also provided a gateway for a previously untapped market segment—individuals who may feel hesitant to step into a physical cannabis retail store.
Dangers Unseen: The Employee-Side Risks
When it comes to cannabis delivery, the focus often centers on product safety and compliance with intricate regulations. Yet, the risks faced by delivery personnel are equally significant and deserve careful consideration. One of the most common and often unexpected risks is the peril of dog bites. As a seasoned insurance professional, I’ve seen cases where a routine delivery turned into a harrowing experience due to an unforeseen encounter with an aggressive pet.
Dog bites may seem minor, but they can lead to serious injuries, legal complications, and financial ramifications for both the employee and the business. It’s crucial for cannabis delivery businesses to incorporate comprehensive insurance coverage that accounts for these unpredictable scenarios.
On the Road: Navigating the Risks of Car Accidents
Another aspect of risk management in cannabis delivery centers on the transportation process. The potential for car accidents poses a substantial threat to delivery personnel, particularly when navigating through unpredictable traffic conditions. Thus, ensuring the safety and protection of the delivery team is paramount.
As experts in cannabis insurance, we advocate for a holistic approach to risk management that encompasses employee training, vehicle safety measures, and robust insurance coverage. Businesses must be proactive in implementing safety protocols and providing ongoing training to mitigate the risks associated with accidents on the road.
Insurance Solutions: Safeguarding Your Assets
In the world of cannabis delivery, insurance is not merely a legal requirement; it is a strategic investment in the longevity of your business. Tailoring insurance coverage to address employee-side risks is a pivotal step in fortifying your enterprise against unforeseen challenges.
A comprehensive risk management strategy hinges on an all-encompassing liability coverage that explicitly includes incidents like dog bites. It’s crucial to underscore that occurrences such as dog bites are integral components of a robust workers’ compensation policy, underscoring their inclusion within the same framework. This interconnected approach forms the backbone of a well-rounded risk management strategy. Additionally, ensuring that your delivery vehicles are adequately insured acts as a critical safeguard, shielding your business from the financial ramifications of accidents.
Nurturing Growth Through Proactive Risk Management
Overall, the cannabis industry continues to evolve, so too must our approach to risk management. The journey from seed to sale is fraught with uncertainties, and it’s our responsibility as insurance professionals to provide a safety net that extends beyond insurance that meets the minimum legal requirements. By prioritizing employee-side risks in cannabis delivery, businesses not only protect their most valuable assets—their workforce—but also fortify their position in this dynamic market. In the ever-changing landscape of cannabis, let proactive risk management be the compass guiding your business towards a sustainable and secure future.
Elevate Your Cannabis Business with NCIA Membership
Embark on a journey of growth, knowledge, and industry collaboration by becoming a member of the National Cannabis Industry Association (NCIA). As the leading voice of the cannabis industry, NCIA provides unparalleled resources, advocacy, and networking opportunities to businesses navigating the dynamic landscape of cannabis.
Why Join NCIA?
Industry Advocacy: Gain a powerful ally in shaping cannabis policies and regulations at the national level. NCIA actively engages with policymakers to ensure a favorable environment for cannabis businesses.
Educational Resources: Stay ahead in the ever-evolving cannabis space with access to exclusive industry reports, webinars, and educational events. NCIA keeps you informed about the latest trends and best practices.
NCIA Events: Connect with fellow industry professionals, entrepreneurs, and thought leaders at NCIA’s signature events – including the 2024 Stakeholder Summit Series and 12th annual Cannabis Industry Lobby Days. Forge valuable partnerships and stay connected with the pulse of the cannabis community.
How NCIA Membership Enhances Your Risk Management Strategy
In collaboration with industry leaders, NCIA offers insights and resources to strengthen your risk management approach. As a member, you’ll have access to specialized content, webinars, and expert advice tailored to the unique challenges faced by cannabis businesses in the delivery sector.
Join NCIA Today
Elevate your cannabis delivery business with NCIA membership and take a proactive step towards a secure and thriving future. To explore the benefits of membership and join the growing community of cannabis professionals, visit National Cannabis Industry Association. For personalized assistance and insights, feel free to reach out to our dedicated membership team at membership@cannabisindustry.org.
Unlock the full potential of your cannabis business with NCIA – Your Partner in Progress.
Overcoming Information Barriers: Data Silos in the Cannabis World
As the cannabis industry rides the waves of rapid globalization and acceptance, it is evolving into a multi-billion-dollar sector. And with this sudden influx of money, has also come an influx of data.
Unfortunately, the industry is evolving and growing faster than many businesses can keep up with, leading to roadblocks and obstacles that many businesses don’t have the infrastructure in place to adapt around. One such pressing issue is the compartmentalization of data within businesses, or “data silos”
When these silos occur, information is isolated from other systems, limiting accessibility and collaboration, and making it nearly impossible for data-driven decision-making.
The implications of siloed data
Data silos often appear when various departments within a cannabis enterprise, from cultivation to processing, distribution, and even retail, employ distinct information systems. Different facets of a business often utilize different tools and solutions, each with their own data infrastructure and programming. Although taking on multiple solutions can ease the initial burden for businesses trying to build their tech stack, this approach can lead to major processing hurdles later down the road.
The biggest drawback of this isolated data environment is limiting cross-departmental collaboration. Let’s paint a scenario: without a unified data system, cultivators might not be able to synchronize their production schedules with the sales trends identified by their retail and distributor outlets. This misalignment can lead to stock shortages, resulting in lost sales and disappointed customers. Conversely, it might also lead to overproduction, and in turn expired products and heavy storage expenditures over time.
Root Causes of Data Silos in Cannabis
To tackle this challenge head-on, it’s essential to first understand where it comes from. There are several major factors that contribute to the emergence of data silos:
Segmented Business Models: As cannabis businesses expand, they often segment into specialized units. Each of these units, with their unique operational needs, can inadvertently craft their own data management methods, leading to isolated data pools. Dispensaries may be employing different systems for their point-of-sale (POS), inventory management, ordering, and digital marketing. Without integrating the above systems, managers and C-suite individuals can’t properly align their supply-chain with sales strategies. Likewise, suppliers and distributors often lack transparency between the products they’re pushing out and what’s actually selling on retail shelves.
Regulatory Complexity: The cannabis industry is heavily regulated, and these regulations can vary widely from one jurisdiction to another. A lack of central federal guidelines means each state is left up to its own devices to determine how businesses remain compliant, and this problem is only compounded as we delve down into individual counties and territories. Different stages of the supply chain also have different data they must report, making it extremely difficult for vertically integrated businesses to ensure they’re covered on all fronts. With these varying regulatory demands, different departments may adopt distinct data tracking systems, further deepening the data divide.
Industry Infancy: The relative newness of the cannabis industry means there’s a continual influx of specialized technological solutions. Very little in the industry is standardized at this point, meaning each solution has its own approach to both data governance as well as data definitions. While these tools might be tailored to address specific needs, they can sometimes exacerbate data isolation if not chosen with integration in mind.
Challenges presented by data silos
Persisting with data silos introduces several operational hurdles. On a macro scale, isolated data complicates streamlining processes across the business chain. It introduces inconsistencies, creating a ripple effect that might not only compromise the quality of end products, but the efficiency in getting them into consumer hands.
Additionally, the overhead of managing multiple data systems can strain resources, both in terms of manpower and finances. Within the tightly regulated framework of the cannabis industry, these inconsistencies can magnify into compliance violations. This can lead to hefty fines, reputational damage, or in extreme cases, business closures. It takes just one failed audit to incur devastating losses, especially for smaller businesses that lack the capital to cushion heavier blows.
Strategies to overcome data silos
Bridging the data divide demands a two-pronged approach—technological adaptations coupled with organizational cultural shifts.
Promoting a collaborative data culture: The first step is to build an organizational ethos that places immense value on data-driven decision-making. Staff and management alike need to prioritize the value of data and adopt the mindset that “data is key.”
Such a culture should incentivize cross-departmental collaborations, fostering an environment where data sharing becomes the norm rather than the exception.
Unified data systems: Technological investments play a pivotal role. By adopting systems like industry-specific ERPs or advanced data integration tools, businesses can usher in a centralized data management paradigm. Such platforms not only facilitate data integration but also enhance analytics capabilities.
Data governance: Instituting a robust data governance framework ensures there are clear policies regarding data access and manipulation. This promotes data integrity and accuracy, striking a balance between facilitating data accessibility as well as maintaining regulatory compliance.
The role of data analytics
In today’s digital age, analytics may just be the cannabis industry’s biggest ally. Contemporary analytics solutions, especially those leveraging cloud technology, offer robust platforms to centralize, integrate, and analyze data. This allows businesses to harness insights from seed-to-sale and empower their overarching business strategies. By breaking down data silos, the cannabis industry can ensure operational agility and enhance customer satisfaction, positioning itself for sustained growth in a rapidly evolving landscape.
How to Use Chat GPT to Automate Routine HR Tasks and Revolutionize HR
Human Resources professionals frequently find themselves juggling several jobs in the fast-paced business world of today, from hiring and onboarding to employee engagement and compliance. The good news is that Chat GPT, a game-changing tool, may assist HR teams in streamlining their processes and liberating critical time. With the help of this potent AI technology, mundane HR tasks may be automated, freeing up HR experts to concentrate on more strategic objectives. In this blog post, we’ll look at how to use Chat GPT to transform your HR department in an approachable and polished way.
The Chat GPT Revolution
The days of paper applications and manual record-keeping are long gone in the world of human resources. With Chat GPT, a new era of automation and efficiency is now being ushered in. Let’s explore Chat GPT’s definition and operation.
What is Chat GPT?
Chat GPT is a cutting-edge AI technology developed by OpenAI. It’s based on the GPT-3.5 architecture, which stands for “Generative Pre-trained Transformer 3.5.” This AI model has been trained on vast amounts of text from the internet, making it incredibly proficient in understanding and generating human-like text.
How does Chat GPT work?
Chat GPT is fundamentally a language model. It can comprehend text input and produce text output based on that input. It reacts to your inquiries or cues with text that is logical and contextually appropriate.
The secret to Chat GPT’s effectiveness is its capacity to anticipate the following word or phrase in a given text, depending on the input’s context. It accomplishes this by examining patterns and connections developed throughout its training. Chat GPT is a versatile tool for automating numerous HR processes because of its predictive power.
Automating Routine HR Tasks
We’ve gone over the fundamentals of Chat GPT; now, let’s see how you can automate daily HR tasks using it. Operations will be streamlined as you bid farewell to the laborious and time-consuming components of HR.
Resume Screening and Candidate Matching
The process of looking through resumes and selecting qualified candidates is one of the most time-consuming activities for HR professionals. You can automate the initial screening procedure or create screening questions with Chat GPT. The AI only needs a job description to swiftly scan and match resumes to the necessary credentials and abilities.
Employee Onboarding
A significant amount of paperwork and administrative work goes into onboarding new staff. Chat GPT can create customized onboarding materials, welcome emails, and give new employees important details about the business, culture, and policies. This guarantees that your new team members integrate seamlessly.
Answering Frequently Asked Questions (FAQs)
Employees frequently ask typical questions to HR departments concerning benefits, rules, and practices. The requirement for HR professionals to continuously respond to the same inquiries can be eliminated by programming Chat GPT to deliver rapid and accurate answers to these FAQs.
Scheduling Interviews and Meetings
It can be quite difficult to coordinate the calendars for meetings, interviews, and training sessions. By recommending open timeslots and distributing invitations on behalf of HR specialists, Chat GPT can eliminate the headache of scheduling.
Compliance and Policy Updates
It’s important to stay current with evolving HR legislation and regulations. By keeping track of regulatory changes and changing corporate policies as necessary, Chat GPT can assist HR departments in maintaining compliance. Additionally, it has the ability to notify staff members of significant policy modifications.
Setting Up Chat GPT for HR Automation
Now that you’re enthused about Chat GPT’s ability to automate HR duties, let’s talk about how to set it up successfully. Here’s a how-to manual to get you going:
Choose the Right Chat GPT Platform
There are numerous platforms that provide access to Chat GPT, including the OpenAI API and specific HR automation applications that use Chat GPT. Consider your alternatives carefully, and pick the one that best satisfies the requirements of your company.
Define Your HR Tasks
Determine which particular HR duties you wish to automate. Start with the tasks that require the most repetition and time. This might involve screening resumes, onboarding, responding to frequently asked questions, or any other process you think is amenable to automation.
Train and Customize Chat GPT
Chat GPT can be customized to comprehend HR-specific terms and procedures. By giving the AI model examples of prompts and replies linked to HR, you’re able to fine-tune it. This ensures that it produces accurate and contextually appropriate content.
Integration with HR Systems
Integrate Chat GPT with your current HR systems and applications to achieve seamless automation. This will give the AI access to employee details, timetables, and other pertinent data for efficiently completing work.
Testing and Monitoring
Make sure Chat GPT performs as intended by conducting extensive testing prior to implementing it fully for HR automation. To increase accuracy and effectiveness, regularly assess its performance and make any necessary improvements.
Benefits of Using Chat GPT in HR
You’ll immediately recognize the numerous advantages that Chat GPT for HR automation provides to your division and to your company as a whole as you start to adopt it:
Time Savings
The time that routine tasks take up can be freed up by automating them, allowing HR professionals to devote more of their time to strategic projects like hiring, training, and workforce planning.
Increased Efficiency
Chat GPT works around the clock ensuring that HR duties are finished on time and consistently. It doesn’t get tired, making it a dependable instrument for sustaining effectiveness.
Enhanced Employee Experience
By delegating administrative duties to Chat GPT, HR staff can concentrate more on delivering individualized support and a better overall experience for employees, which will increase employee satisfaction.
Scalability
Chat GPT may scale up with your business as it expands. Without the need for extra HR workers, it can manage an expanding workload, saving on hiring fees.
Cost Savings
The cost savings from automating HR tasks can be substantial due to lower personnel expenses and improved operational effectiveness. Both your HR department and the bottom line will benefit from this.
Overcoming Challenges
While Chat GPT offers immense benefits for HR automation, there are some challenges to be aware of and address:
Data Privacy and Security
Prioritizing data privacy and security is crucial when integrating Chat GPT with HR systems. Assure the security of sensitive employee data and compliance with applicable laws like GDPR or HIPAA.
AI Bias
Biases existing in the data can be inherited by AI models like Chat GPT. To maintain fair and equitable HR practices, be diligent in monitoring and minimizing bias.
User Adoption
Some workers might be reluctant to use AI for HR-related questions. To promote user adoption and foster confidence in the technology, offer training and assistance.
Regular Updates and Maintenance
AI models must be regularly updated and maintained in order to remain precise. Allocate the funds for ongoing development and adaptability to shifting HR requirements.
Adopting technologies like Chat GPT can be a game-changer in the constantly evolving field of HR. Routine duties can be automated so that HR professionals can concentrate on what is most important—people. With the appropriate tools in place, your department can lead the way in innovation and productivity in the promising future of HR.
It’s time to leverage Chat GPT’s potential and transform your HR processes. Say good-bye to the routine and hello to an HR department that is more strategic, effective, and fun!
Committee Blog: Embracing Pay Transparency and Equity in the Cannabis Industry
In recent years, cannabis companies across the United States have been called upon to adopt greater pay transparency and pay equity practices. For businesses in this rapidly evolving industry, understanding these concepts can lead to attracting top talent, improving employee engagement, and ultimately building a strong brand. If you’re a cannabis company considering implementing these practices, this article explores how they can benefit your organization.
Understanding Pay Transparency, Pay Equity, and Pay Range
Pay Transparency:
Pay transparency involves openly sharing compensation information with both current employees and potential hires. It can take various forms, from discussing pay with individual team members as needed to publicly disclosing pay information for specific positions. Additionally, pay transparency includes providing a salary range in job listings, giving candidates an idea of earning potential based on qualifications and requirements.
Pay Equity:
Pay equity strives for equal compensation for the same position, regardless of age, race, or gender identity. Legal frameworks support pay equity by addressing unfair pay practices and emphasizing that two people doing the same job should receive the same pay.
Pay Range:
A pay range defines the minimum and maximum pay for a particular job. Offering a realistic pay range enables candidates to make informed decisions and helps employers attract employees whose compensation expectations align with the offered salary.
The Cannabis Industry Case for Pay Transparency and Pay Equity
Historically, many cannabis companies did not openly discuss compensation, but embracing pay transparency and pay equity can bring numerous benefits.
A transparent and equitable environment can boost employee satisfaction, retention, career pathing success, and productivity. When employees feel fairly compensated and valued for their contributions, they are more committed and less likely to seek other opportunities, reducing costly turnover.
Human resources teams often lead these initiatives, but the involvement of executives and decision-makers is essential for successful implementation. Collaboration between HR and leadership is key to creating policies that promote fairness and transparency, enhancing employee satisfaction and retention.
A Pay Transparency and Pay Equity Strategy for Your Cannabis Company
Implementing pay transparency can be complex, but following a step-by-step strategy can simplify the process:
Analyze, Evaluate, and Correct the Current Pay Structure: Begin by assessing your cannabis company’s current pay structure, identifying pay disparities, and addressing any issues.
Develop a Pay Transparency Policy: Create a clear policy outlining your commitment to pay transparency and guidelines for determining pay.
Communicate the Policy: Share the policy with all employees, explaining its details and providing examples of how it works.
Provide Training and Support: Train managers and HR staff on the policy’s implementation and ensure they have the necessary resources.
Monitor and Adjust: Regularly review the policy’s implementation and adjust based on feedback.
Evaluate and Improve Pay Equity: Continuously assess and improve pay equity within your cannabis company.
A Worthwhile Effort for Cannabis Companies
While implementing pay transparency and equity strategies may initially seem daunting, their benefits can significantly impact hiring and retention efforts, team cohesion, employee satisfaction and overall business success. In the rapidly evolving cannabis industry, these practices can set your company apart and help it thrive.
For more information on how embracing pay transparency and equity can benefit your cannabis company, reach out today.
Cultivation Chronicles: The Cannabis Risk Management Series
Welcome to the first installment of the four-part Cannabis Risk Management blog series from Valerie Taylor with NCIA Blooming Member The Liberty Company Insurance Brokers, where they’ll journey through the vibrant landscape of the cannabis industry. As a seasoned insurance expert specializing in cannabis, their goal is to illuminate the path to securing your cannabis business, starting with the fundamental pillar – cultivation.
Cannabis cultivation is where it all begins; it’s the heart of the industry. But this thriving world of green has its unique challenges and risks, and that’s where the right insurance coverage becomes your guardian angel. In this blog, we’ll explore the intriguing world of cannabis cultivation, understanding the high-stakes risks, and discovering how to protect your cannabis crop.
The Complex Landscape of Cannabis Cultivation
Cultivating cannabis is both an art and a science. It’s the heart of the cannabis industry, where the magic begins. However, with great potential comes great risk, and understanding these risks is the first step in protecting your investment.
Work Comp Claims: Protecting Your Green Thumbs
In the demanding world of cannabis cultivation, dedicated teamwork is vital. However, hard work also brings potential risks in the form of work-related injuries. Employees engaged in activities such as trimming, harvesting, and general maintenance face various injury risks, including repetitive strain and slips and falls. These risks can sprout into work comp claims. To safeguard both your employees and your business, it’s crucial to establish a comprehensive workers’ compensation policy, complete with standardized safety protocols. Additionally, given the electrical complexities inherent to cultivation, it’s critical to engage licensed professionals to mitigate potential electrical hazards.
Fire and Equipment Breakdown: A Blaze of Concern
Within cultivation facilities, a multitude of electrical equipment, grow lights, and climate control systems are indispensable for achieving optimal growth conditions. However, they concurrently elevate the potential for fires. The rapid and devastating nature of a fire can swiftly engulf your entire operation, leading to substantial financial losses that many operators may struggle to recover from if they lack adequate insurance coverage. Beyond safeguarding against fires with appropriate insurance, it’s imperative to consider equipment breakdown coverage. This serves as a critical safety net, assuring uninterrupted cultivation by protecting against unforeseen equipment failures.
Sowing the Seeds of Risk Mitigation
Understanding the risks is only the first step; the next is actively mitigating them. By adopting proactive measures, you can fortify your cultivation operation against potential threats.
Invest in Safety Measures: Cultivating Safety
To ensure a thriving and secure work environment, make safety your foremost concern. Start by establishing rigorous protocols and offering comprehensive training to your employees. This proactive approach not only significantly reduces the likelihood of work comp claims but also fosters a safety-conscious culture within your workforce, enhancing overall productivity and morale.
Fire Safety Systems: Quelling the Blaze
Install top-tier fire safety systems that include smoke detectors, sprinklers, and fire-resistant materials. Regular inspections and maintenance are paramount to ensure these systems are always ready to spring into action.
Regular Equipment Maintenance: The Lifeblood of Your Operation
Maintaining your equipment on a regular schedule is essential for the smooth operation of your cultivation facility. By conducting routine equipment inspections and adhering to a stringent maintenance plan, you can ensure that your machinery and systems operate at peak efficiency. This proactive approach not only optimizes performance, but also significantly reduces the risk of costly equipment breakdowns that can disrupt your cultivation rhythm. Regular equipment maintenance is the heartbeat of a reliable and productive operation.
Theft Prevention: Safeguarding Your Valuable Investments
It’s no surprise that theft is a prevalent issue in the cannabis industry, primarily due to the substantial capital invested in building and equipping cultivation spaces. The attractiveness of these facilities as targets for theft is evident, with many clients reporting incidents of theft, including the theft of lighting systems and plants. To protect your investments and ensure the uninterrupted operation of your facility, it’s crucial to incorporate theft prevention measures. Implementing security protocols, surveillance systems, and access controls can deter theft and unauthorized access, offering you peace of mind and safeguarding your assets.
Embrace Specialized Cannabis Insurance
Cannabis cultivation isn’t a one-size-fits-all endeavor, and neither is the insurance that protects it. Standard insurance policies often fall short when it comes to understanding the intricacies of this unique industry.
Working with an insurance advisor who specializes in cannabis is pivotal. They have the knowledge to customize policies tailored to your cultivation risks, providing coverage from germination to harvest.
In closing, always remember that knowledge is your best ally in the ever-evolving landscape of the cannabis industry. As we continue this series, we’ll explore the unique risks faced by the retail, distribution, and manufacturing sectors, weaving together a comprehensive understanding of cannabis risk management.
Stay tuned for our next installment, where we’ll venture into the dynamic world of cannabis retail, revealing the distinct challenges and opportunities it brings. Whether you’re a cultivator, retailer, or part of the larger cannabis ecosystem, our mission is to empower you with the insights and insurance solutions you need to thrive in this flourishing industry.
For more information, please reach out toValerie Taylor, Vice President (National Cannabis Practice Leader), Liberty Company Insurance Brokers.
How Compliant Tech Bolsters Cannabis License Application
Are you contemplating entering the burgeoning cannabis retail market? Whether you plan to open a dispensary in states that recently legalized recreational cannabis, like Maryland and New York, or any legacy states that are still awarding new licenses, the first and most crucial step towards success is ensuring that your cannabis retail license application meets all legal requirements. In this blog post, we’ll explore how compliant cannabis technology can be your guiding light and help you strengthen your license application, helping you navigate the intricate landscape of cannabis laws and regulations.
1. Grasping the Universal Elements in Licensing Requirements
The cannabis industry is a patchwork of regulations, with licensing requirements varying significantly from state to state. Yet, there are shared elements, such as legally binding sales limits, mandatory reporting to government agencies, and indispensable seed-to-sale cannabis product tracking. These commonalities are crucial, and you lay a strong foundation for your journey by understanding and adhering to them. Partnering with a reputed cannabis technology provider and using advanced cannabis software that automates all these requirements at your dispensary will demonstrate your commitment to compliance.
2. Mastering Cannabis Inventory Management
Effective cannabis inventory management is not just the key to your business’s success, it is also the linchpin to obtaining your cannabis retail license. Demonstrating proficiency in this area, including how you will accurately track and report inventory to your jurisdiction, is vital for compliance and regulatory adherence. With the help of the right cannabis inventory management system integrated into your cannabis POS, you can easily corroborate cannabis inventory requirements in your license application.
3. Ready-to-implement Tech Solutions for Key Challenges
If your chosen cannabis software provider provides multiple solutions, you can tackle the following essential aspects of your license application:
Cannabis POS Requirements: The right cannabis POS solution significantly reduces human errors and ensures precise product tracking. Incorporating it into your business shows your dedication to accurate compliance.
Automation for Compliance: Utilizing automated technology to oversee compliance matters, like reporting, purchase limits, and operational hours, underscores your commitment to regulatory conformity.
Local Tracking System Interface: Crafting a strategy for seamless interaction with the local state/provincial tracking system is imperative. This demonstrates your readiness to operate within the regulatory framework.
Peak Days Support: How the cannabis retail software you choose will support the busiest cannabis retail days of the year is an essential consideration. Being prepared for high-demand periods is a mark of a well-prepared dispensary business.
Customer Privacy & Data Protection: Developing a plan for safeguarding customer privacy and proprietary information at your dispensary establishment is critical for responsible and secure operation. With the right software, your customer data will always be secure, and your dispensary will remain compliant.
Multi-Location Inventory: For those with aspirations of business expansion, overseeing inventory across multiple locations is a strategy that can demonstrate your readiness for growth. This is where advanced cannabis software becomes even more crucial.
4. Tailored to Your State’s Regulatory Concerns
Cannabis technology can be customized to address the specific regulatory concerns of your state. Having technology that is adaptable to the nuances of your region is a key asset. This technology is your ultimate companion in navigating the complexities of regulations, helping you successfully secure your legal dispensary license and become a part of this rapidly growing industry. To ensure that your license application meets all dispensary tech and compliance requirements, download Cova’s Free Handbook, which is a great resource to help you submit a successful cannabis retail license application in your state.
Unveiling Cultivation Secrets for a Record-Breaking Cannabis Yield
If numbers could talk, they’d tell an incredible story of the rise of cannabis. Now crowned the sixth most valuable crop in the United States, its growth trajectory is nothing short of remarkable.
To paint a clearer picture, in fresh insights from the second annual harvest report by Leafly, we learn that 2022 saw 2,834 metric tons of adult-use cannabis being grown across 15 legal cannabis states. What’s even more astounding is the growth – a 24% increase from the previous year, adding 554 more metric tons to the tally.
Are you reading this because you want to grow more cannabis, too? You’re in the right spot. Here, we’ll disclose the secrets to help boost your cultivation. Let’s begin!
Picking the Right Seeds
Your yield’s potential is, in many ways, determined by the seeds of the plant you’re growing. That’s why it’s important to understand different types of cannabis seeds and what they offer.
Firstly, there are feminized seeds, which are bred specifically to eliminate male chromosomes. This increases the chances of growing a female plant, which is crucial because only female cannabis plants produce the coveted buds you need. According to professionals, choosing feminized seeds means less guesswork and more yield potential.
One popular feminized seed is the Do Si Dos strain, renowned for its potency and vibrant trichome-rich flowers. It offers a blend of physical tranquility and sensory elevation, making it a favorite among medicinal and recreational users.
Then, we have auto-flowering seeds. These seeds automatically shift from the vegetative phase to the flowering phase based on age rather than light cycles. They’re great for beginners or those looking for a quicker harvest, as they mature faster than regular seeds.
Finally, there are the regular seeds. These seeds can be both male and female, so growers need to be careful during the vegetative stage to identify and separate male plants, ensuring they don’t pollinate the females.
Pro Tip: It’s essential to source your seeds from reputable sellers. Established seed banks or suppliers often provide detailed information about genetics, expected yield, and growth patterns, ensuring you make an informed choice.
Choosing the Best Soil Mixtures
Cannabis, by nature, prefers soil that is well-aerated and has good drainage capabilities. This ensures that the roots can breathe and access water without the risk of rotting.
For this purpose, you can create a soil mix combining coco coir, perlite, and organic compost. Coco coir will promote root health; perlite ensures proper aeration and organic compost offers essential nutrients for healthy growth.
It’s noteworthy that every strain might have its preferences. Therefore, it’s worth spending time researching and possibly even experimenting with small batches. It will ensure only a limited number of plants are affected (if something goes wrong) and provide clearer insights into what works best for specific strains or under certain conditions.
Ultimately, the right soil mixture will create the difference between a mediocre and a record-breaking yield.
The “Screen of Green” (SCROG) Method
The “Screen of Green” method is not just another cultivation fad; it’s a tried-and-tested method to enhance plant growth and optimize yields. It involves setting a horizontal mesh or net above your plants.
As the plants grow, their branches are gently woven into the screen, allowing for better light exposure and distribution. This promotes even and robust growth as even the lower branches receive adequate light.
But that’s not all! The method also allows plants to utilize space more efficiently. By training the plants to grow horizontally rather than vertically, growers can maximize their canopy space, resulting in more buds and, ultimately, a heftier harvest.
So, if you have limited growing space or are aiming for a stealthy indoor grow, SCROG offers a practical solution. Give it a try and see the results yourself!
Understanding the N-P-K Ratio
The N-P-K ratio is a simple yet crucial gardening component, especially for cannabis cultivation. “N-P-K” stands for Nitrogen (N), Phosphorus (P), and Potassium (K) – the three vital nutrients that plants need to thrive. Let’s dig into the details:
Nitrogen (N) is fundamental for vegetative growth. It’s responsible for the lush green leaves you see on plants. For cannabis, especially during its vegetative phase, a higher nitrogen level ensures hearty growth.
Phosphorus (P) plays a pivotal role in root development and flowering. It’s essential when cannabis plants transition to their blooming phase, as it encourages the growth of dense and resin-rich buds.
Potassium (K) is a kind of all-rounder. It aids in overall plant health, ensures better protection from diseases, and boosts cell structure.
By tailoring this ratio to the plant’s growth stage, you can ensure your plants get precisely what they need and when they need it.
Recognizing Signs of Plant Disease
You’ve acquired premium seeds, perfected your soil mixture, and nailed the ideal N-P-K ratio. But, if you fail to protect your plants from disease, it’s all for nothing.
Diseases can stealthily undermine all your hard work, often taking hold before you even spot them. To avoid this situation, early detection is your best defense, saving both your crop and effort.
So, pay close attention to your plants’ leaves; are they discolored, yellow, or spotty? These could be distress signals sent out due to nutrient imbalances or invasive fungal attacks. Wilting leaves can point towards problematic roots, while unusual spots or mold hint at pest infestations or bacterial onslaughts.
Even a sudden, odd odor from your plant shouldn’t be ignored. Stay alert to these signs, as prompt recognition and action could be your harvest’s lifesaver.
The Best Time to Harvest
When it comes to yielding the most potent and abundant cannabis crop, timing is everything. If you harvest too early, you might miss out on maximum potency. On the other hand, if you are too late, you risk THC degradation.
To ensure you’re hitting that sweet spot, keep an eye on the trichomes – those tiny, mushroom-like glands on your buds. When a majority turn milky white with some amber, it’s usually prime time. Apart from this, monitor the pistils: if they’re more than 70% brown or red, your plant is signaling readiness.
Final Words
Growing a top-notch cannabis plant isn’t just about luck. It’s about knowing what to do and when to do it. So, save this handy guide and refer to it when you wish to grow cannabis. Also, make sure to keep learning, as the more knowledge you get, the better quality plants you can harvest.
Member Blog: Where Is Delta-8 THC Legal and Where Is It Banned? CBD Oracle’s Map Has the Answers
Delta-8 THC is probably the most controversial cannabinoid on the planet right now. With the 2018 Farm Bill being widely considered to have removed the THC isomer from the federal list of controlled substances, hemp and CBD companies quickly found a use for their excess CBD isolate. But if you’re considering selling delta-8 THC,federal law is only a part of the picture, and at state level, you have a patchwork of different laws and regulatory schemes to contend with.
This is why CBD Oracle, working alongsideNeil Willner co-chair of the Cannabis Group at Royer Cooper Cohen Braunfeld, has produced astate-by-state map of delta-8 THC’s legality based on extensive reviews of state law. If you want to know what’s going on with delta-8 THC in a specific state, this is one of the best resources around to get the answer you’re looking for.
Delta-8 THC Is Legal in 22 States and 1 District With Limited Regulation
Despite the controversy surrounding delta-8 THC, it remains legal in 22 states and 1 district, with only limited regulation. This covers the following states:
Alabama*
Arizona
Arkansas
Florida*
Georgia (?)
Illinois
Indiana (?)
Kentucky*
Maine
Maryland* (?)
Missouri
Nebraska
New Jersey
New Mexico
North Carolina
Ohio
Oklahoma
Pennsylvania (?)
South Carolina (?)
Texas (?)
Washington D.C.
Wisconsin
Wyoming*
Here, a * beside the state’s name means they’ve instituted age restrictions, preventing anybody aged 21 or under from buying delta-8 THC. States marked with (?) are currently involved in legal action about the status of delta-8 THC.
In the majority of these cases, state law basically follows the blueprint laid down by the 2018 Farm Bill with few or no additional rules. In fact, only a handful of states (Alabama, Florida, Kentucky, Maryland and Wyoming) have even passed laws preventing youth from buying delta-8 THC.
Legal actions are ongoing in several states, with the situation being slightly different in each. For instance, in Maryland, thehemp industry won a temporary injunction against the state, preventing the state from enforcing the provisions of House Bill (HB) 556 which relate to hemp until the action is resolved. The bill originally made it so that delta-8 THC products (and most CBD) could only be sold in licensed marijuana dispensaries, but this was deemed by the court to create a monopoly.
Delta-8 THC Is Banned in 17 States and Severely Restricted in 7 More
For every state where delta-8 THC is de facto legal, there is another state which has either banned or severely restricted the cannabinoid. In total, CBD Oracle’s analysis shows that delta-8 THC is banned in 17 states and severely restricted in 7 more. The states with bans are:
Alaska
Colorado
Delaware
Hawaii
Idaho
Massachusetts
Mississippi
Montana
Nevada (technically could be approved for marijuana industry)
New York (isomerization banned, could theoretically be sold in adult use)
North Dakota
Oregon
Rhode Island
Utah (possible in medical industry)
Vermont
Washington
West Virginia
And there are severe restrictions – limiting all THCs to be under 0.3% for hemp products, unless otherwise noted – in the following seven states:
Iowa
Kansas
Louisiana (all THCs must be under 8 mg per serving and 1% by dry weight)
Michigan (all THCs under 0.3% and only marijuana-derived delta-8 allowed)
Minnesota (all THCs under 0.3% and less than 5 mg per serving)
New Hampshire
Virginia (2 mg serving limit or >25:1 CBD:THC ratio)
Exactly how delta-8 THC is banned or restricted varies by state. For instance, while Coloradobans the “isomerization” process used to make delta-8 from CBD, Idahobasically bansanything that contains THC at all, even if it’s just CBD with trace, federally-acceptable levels of delta-9 THC. For the restricted states, most require that all THCs total to under 0.3% by dry weight, which is technically possible for a delta-8 THC product to meet, but essentially none do.
The analysis also revealed that – just like with marijuana – making delta-8 THC illegal doesn’t automatically remove it from a community. In Hawaii and Mississippi, for instance, despite state law banning delta-8 THC, it is still openly sold.
Only Three States Have Substantial Regulations on Delta-8 THC
In California, Connecticut and Tennessee, delta-8 THC is legal but has substantial regulations in place. In California and Connecticut, delta-8 THC is treated as marijuana and is sold as part of the adult use industry. This automatically institutes a wide range of requirements on the cannabinoid, including rules on testing and labeling to ensure safety and transparency for consumers.
Tennessee is the unique case here, where delta-8 THC is regulated as a “hemp-derived cannabinoid” and is legal to sell to adults aged 21 and over.Senate Bill (SB) 378 includes requirements for testing for contaminants, informative labeling and marketing which does not target youths, as well as a 25 mg serving size limit.
The Patchwork of Laws and the Future of Delta-8 THC
The key take-away for sellers of delta-8 THC is that current state regulations are a patchwork, making it very difficult to navigate for even the most responsible of companies. The product you can sell in Arizona without issues is probably not legal in Kansas, and would require batch testing and more to be sold in Tennessee.
This uncertainty may be resolved by the upcoming 2023 Farm Bill, but even this isn’t a sure thing. While the 2018 Farm Bill opened the door to a whole host of products and simply assumed (incorrectly) that the FDA would step up to regulate finished products, the new version might offer the clarity that was lacking. However, it’s just as likely that the bill will redefine “hemp” in a way that excludes delta-8 THC by default.
Pretty much the only thing you can depend on is that you’ll need to keep a close eye on state laws in the coming year. CBD Oracle’s map will be continuously revised to reflect the current legal reality and help responsible hemp companies remain compliant. ______________________________________________________________________________________
Lee Johnson is the senior editor at CBD Oracle, and has been covering science, vaping and cannabis for over a decade. He focuses on research-driven deep dives into topics ranging from medical uses for CBD to industry and user statistics, as well as general guides and explainers for consumers.
CBD Oracle is a cannabis consumer research company working to improve the safety and transparency of cannabis and hemp products, which publishes in-depth scientific, legal and consumer analyses on cannabis and cannabinoids.
Committee Blog: Leveraging Business AI Tools for Scaling Cannabis Companies – Strategies and Implementation
The cannabis industry has experienced remarkable growth in recent years, as both regulatory landscapes and public perceptions shift. As the market expands, cannabis companies face increasing pressure to scale their operations while maintaining compliance and meeting customer demands. In this era of digital transformation, Business AI tools, such as ChatGPT, offer innovative solutions that can empower cannabis companies to streamline processes, enhance customer experiences, and drive growth. A tremendous benefit is it takes little skill to learn how to use AI for a beginner or one could work with an expert in AI. In this article, we will explore the potential of AI tools in the cannabis industry and delve into strategies for their effective implementation to achieve desirable business outcomes.
The Power of Business AI Tools in the Cannabis Industry
Artificial Intelligence (AI) is transforming various industries, and the cannabis sector is no exception. Business AI tools encompass a range of technologies, including natural language processing (NLP), machine learning (ML), and data analytics, all of which can be harnessed to address the unique challenges faced by cannabis companies seeking to scale.
Enhanced Customer Engagement: One of the critical aspects of scaling any business is effective customer engagement. AI-powered chatbots, like ChatGPT, can provide personalized, round-the-clock support to customers, addressing inquiries, guiding purchasing decisions, and even providing product recommendations. These chatbots create a seamless and responsive customer experience, fostering loyalty and increasing sales.
Data-Driven Insights: AI tools can analyze vast amounts of data to extract valuable insights that can inform strategic decisions. For cannabis companies, this could mean analyzing customer preferences, tracking market trends, reviewing internal operations management, and optimizing supply chain management. These insights enable businesses to adapt quickly to changing market dynamics and stay ahead of competitors.
Process Automation: Tedious and time-consuming tasks can hinder scalability. AI-powered automation can optimize inventory management, order processing, and regulatory compliance, allowing employees to focus on higher-value activities. This not only increases efficiency but also reduces the risk of errors.
Predictive Analytics: Predicting demand and optimizing production are crucial for scaling operations. AI can analyze historical data to forecast market demand, ensuring that companies can maintain sufficient inventory levels and avoid overstocking or shortages.
Regulatory Compliance: Navigating the complex and ever-changing landscape of cannabis regulations is a significant challenge. AI can assist in monitoring compliance by cross-referencing business practices against current regulations, minimizing the risk of legal issues.
Implementation Strategies for Business AI Tools
While the potential benefits of AI tools are clear, effective implementation is key to realizing those benefits. Here are some strategies for cannabis companies to consider when integrating AI technologies into their operations:
Identify Pain Points and Goals: Begin by identifying the specific pain points your cannabis company faces in its scaling efforts. Whether it’s customer service bottlenecks, inventory management challenges, or regulatory compliance hurdles, pinpointing these issues will guide your AI implementation strategy.
Certified Professionals and Agencies: Collaborating with certified AI professionals or agencies that specialize in your industry can provide invaluable expertise. These experts can assess your business requirements, recommend suitable AI tools, and tailor solutions to your unique needs. Their experience ensures a smoother and more effective implementation process.
Data Collection and Preparation: AI thrives on data, so ensuring clean, accurate, and comprehensive data is crucial. Collaborate with your AI partner to define data requirements, gather relevant information, and organize it for analysis. This step forms the foundation for accurate predictions and insights.
Customization and Training: Generic AI models can be a starting point, but tailoring these models to your cannabis business is essential. Work with your AI professionals to fine-tune algorithms, customize chatbot responses, and train the system to recognize industry-specific nuances.
Continuous Monitoring and Improvement: Implementing AI tools is not a one-time task. Continuously monitor AI performance, gather feedback from customers and employees, and refine your AI systems accordingly. This iterative process ensures that your AI tools evolve with your business needs.
Change Management and Training: Introducing AI into your company may require employees to adapt to new processes. Effective change management, including training programs and clear communication, can help employees embrace AI technologies and use them to their full potential.
Desirable Outcomes and Future Considerations
The successful implementation of Business AI tools can yield a multitude of desirable outcomes for cannabis companies:
Scalability: By automating processes and optimizing operations, cannabis businesses can scale their production, distribution, and customer base more efficiently.
Improved Customer Experiences: AI-powered chatbots provide prompt and personalized customer service, enhancing the overall experience and fostering brand loyalty.
Data-Driven Decision-Making: AI-driven insights enable data-backed decisions, reducing uncertainty and enabling proactive responses to market changes.
Regulatory Adherence: AI tools can help ensure compliance with evolving cannabis regulations, minimizing legal risks and potential setbacks.
Innovation and Competitive Edge: Embracing AI technologies positions cannabis companies as forward-thinking, innovative players in the industry, setting them apart from competitors.
As the cannabis industry continues to evolve, it’s important to consider potential future developments and challenges. These may include:
Ethical Considerations: As AI becomes more integrated into business operations, it’s important to address ethical concerns surrounding data privacy, transparency, and bias.
Regulatory Changes: The cannabis industry’s regulatory landscape is dynamic. AI tools must adapt to new rules and compliance requirements, requiring ongoing monitoring and adjustments.
Advanced AI Capabilities: AI technology is advancing rapidly. Cannabis companies should stay informed about emerging AI tools and consider how they can further enhance business operations.
Conclusion
In the ever-expanding cannabis industry, the integration of Business AI tools holds immense potential for companies aiming to scale their operations and achieve sustainable growth. From enhancing customer engagement to optimizing processes and predicting market trends, AI technologies like ChatGPT offer tangible benefits that can drive innovation and success. By partnering with certified professionals or agencies and following effective implementation strategies, cannabis businesses can navigate the complexities of AI adoption and position themselves as industry leaders. As the industry evolves, a thoughtful and strategic approach to AI implementation will be essential for cannabis companies looking to thrive in a competitive market.
Contributing Authors:Stephanie Bozzuto, Cannabis Connect Insurance, Acrisure Partner | Merril Gilbert, Trace Trust | Shay Aaron Gilmore, The Law Office of Shay Aaron Gilmore | Matthew Johnson, AssuredPartners
Navigating the labyrinth of insurance coverage can be daunting for any business owner, especially within the emerging cannabis industry. Questions like “What coverage do I need?” and “How do I ensure my policy covers my exposures?” are common and crucial. The National Cannabis Industry Association’s Risk Management & Insurance Committee is here to guide cannabis business operators in protecting both personal and business assets.
Below are ten key insights and considerations to guide you when purchasing your next insurance policy. Whether you have a policy in place or are exploring multiple policies, it’s crucial to ensure they align with your intended coverage.
Understanding Policy Forms, Endorsements, and Exclusions
Policy forms, endorsements, and exclusions are pivotal during a claim. For instance, some policies sold to cannabis companies in the US have outright ‘cannabis business exclusions’. It’s crucial to read and understand these documents to avoid jeopardizing your business.
Compliance with Protective Safeguards
To ensure theft coverage response in a loss, understand and comply with the protective safeguards on your property insurance policy. For example, non-compliance with a Central Station Alarm Warranty can exclude coverage after a robbery.
Landlord Insurance Requirements
Understand the insurance coverage required by your landlord before signing any contract. If a triple net lease is required, you, as the lessee, will need to insure not only your business but also the building, which can be costly.
Local Insurance Requirements
Each city, state, and county permitting cannabis will have its own insurance requirements, often including general liability, product liability, commercial auto insurance, and workers’ compensation.
Some states have created specific requirements not present in other states (looking at you, Michigan!). Consult with an attorney to fully understand and meet these requirements.
Facility Maintenance
Maintain and update your facilities, especially if they are older than 20 years, to avoid limited property coverage and being forced to buy an “actual cash value” policy versus “replacement cost.” Updates to your HVAC, plumbing, roofing, and electrical systems are well worth the investment.
High-Risk Area Considerations
If your facility is in a high brush area, be prepared for limited property insurance options and a list of exclusions due to tighter wildfire insurance availability. Your insurer may offer expanded coverage if you’re willing to invest in wildfire defense systems.
Evaluating Insurance Companies
Know the financial strength of your insurance company before purchasing. Consider whether the company is admitted or non-admitted and research their reputation and claims experience.
Claims Experience
Inquire about the carrier’s claims handling experience, conditions of coverage, and the duration it takes to receive a payout from a covered loss. If your broker doesn’t have claims experience with a given carrier, feel free to ask someone on the NCIA’s Risk Management & Insurance Committee.
Legal Concepts and Types of Insurance
Understand the legal concepts involved in property and liability insurance and familiarize yourself with the different types of property insurance policies available on the market. For instance – are you purchasing an admitted or a non-admitted insurance policy? Are you on an ‘all risk’ or a ‘named perils’ coverage form?
Grasping Liability Insurance Distinctions
Liability insurance is crucial, acting as “third-party” coverage, contrasting with “first-party” coverage like property insurance, which protects against damage to one’s own assets.
Duty to Defend vs. Duty to Indemnify
Understanding the difference between the duty to defend and the duty to indemnify is vital. The former is broader, obligating the insurer to defend the insured in lawsuits, even if allegations are baseless. The latter only kicks in if the insured is found legally liable for damages.
Defense Inside/Outside the Limits
One should also inquire about defense inside versus defense outside the limits of a liability policy. A policy with ‘defense outside’ considers all legal costs separate from the total liability coverage, while legal fees will erode the total liability limit for a ‘defense inside’ policy.
Insurable Interest
An insured must have a direct financial interest in the preservation of the property and be exposed to monetary loss as an immediate and proximate result of its destruction. The interest must not be contingent or expectant. Interest in anything not founded on an actual right to the property is uninsurable.
Scope and Importance in Cannabis Industry
The scope of liability insurance, covering legal costs and payouts, is essential, especially in the cannabis industry, where legal landscapes and associated risks are continuously evolving. Adequate coverage is paramount to mitigate potential financial losses due to unique legal challenges and risks, such as product liability claims.
Conclusion
The world of business insurance, especially in the cannabis sector, can be quite complex. However, with the insights provided here, you can navigate your policy purchasing process with confidence and ensure your business is fortified against potential risks. By understanding policy forms, adhering to safeguards, and adapting to local regulations, you can lay a resilient foundation for your business’s growth and success.
The proactive approach advocated by the National Cannabis Industry Association’s Risk Management committee emphasizes the importance of informed decision-making. By evaluating an insurer’s claims experience, comprehending legal nuances, and staying attuned to industry developments, you can empower your business with robust protection, ensuring a resilient foundation for growth and success.
Committee Blog: Cannabis Cultivation Facilities vs. Cannabis Retail Facilities – Disparities and Economic Impact
The cannabis industry has experienced a significant transformation in recent years, with the legalization and decriminalization of cannabis in many regions around the world. This shift has led to the emergence of two distinct yet interconnected sectors within the cannabis market: cultivation facilities and retail facilities. While both play a vital role in the cannabis supply chain, they exhibit notable disparities that have a substantial impact on the economy.
Cultivation Facilities: Nurturing the Green
Cannabis cultivation facilities are the backbone of the industry, responsible for the growth and cultivation of the cannabis plant. These facilities are typically large-scale operations that require advanced horticultural techniques, specialized equipment, and a controlled environment to ensure the optimal growth of cannabis plants. Cultivators must navigate various factors such as lighting, temperature, humidity, and nutrient levels to produce high-quality yields.
One of the most significant disparities between cultivation and retail facilities lies in their resource requirements. Cultivation facilities demand substantial capital investment for equipment, real estate, utilities, and staffing. High-quality lighting systems, advanced climate control mechanisms, and nutrient delivery systems contribute to the significant start-up costs associated with these facilities.
Beyond the financial aspect, cultivation facilities often face regulatory challenges. Licensing requirements, zoning restrictions, and compliance with state and local regulations add another layer of complexity to their operations. However, despite these challenges, cultivation facilities have a direct impact on job creation, local economies, and tax revenues. They provide employment opportunities in rural and urban areas alike, stimulating economic growth and revitalization.
Retail Facilities: The Consumer Experience
On the other end of the cannabis supply chain are retail facilities, where consumers can purchase various cannabis products, including flowers, edibles, concentrates, and topicals. Retail facilities offer a diverse range of products to cater to the preferences and needs of consumers, enhancing the overall cannabis experience. These establishments range from dispensaries to specialized stores and require a different set of considerations compared to cultivation facilities.
Unlike cultivation facilities, retail establishments tend to have lower start-up costs. However, they face their own unique challenges. Navigating a complex web of regulations regarding product labeling, packaging, and sales is crucial for compliance and consumer safety. Retail facilities must also provide a safe and welcoming environment for customers while ensuring age restrictions are strictly enforced.
Retail facilities play a pivotal role in shaping public perception and acceptance of cannabis. As these establishments become more mainstream, they contribute to the normalization of cannabis use and promote responsible consumption practices. This normalization, in turn, has implications for the broader economy.
Economic Impact: Cultivation vs. Retail
The economic impact of cannabis cultivation facilities and retail facilities extends far beyond the cannabis industry itself. Both sectors contribute to job creation, tax revenues, and local economic development. cultivation facilities often require a larger workforce due to the labor-intensive nature of plant cultivation and processing. These jobs span across various skill levels, from horticulturists and technicians to administrators and security personnel.
Retail facilities, while generally employing fewer people per establishment, create job opportunities in customer service, retail management, and education about cannabis products. Moreover, both cultivation and retail facilities contribute to the local economy through real estate demand, leasing agreements, and utilities consumption.
From a taxation perspective, both sectors generate significant revenue for local and state governments. Cultivation facilities are subject to cultivation taxes and other regulatory fees, contributing to state coffers. Retail facilities, in addition to sales taxes, often face excise taxes on cannabis products. These revenues can then be channeled towards public services, education, infrastructure, and social programs.
It’s All Economics
Having more cultivation facilities and fewer retail facilities can have detrimental effects on economic stability. The balance between suppliers and retailers plays a crucial role in maintaining a healthy economy, and an excessive skew towards either end can lead to negative consequences as we are realizing in the current economic state.
A robust economy thrives on competition, which drives innovation, efficiency, and lower prices for consumers. When there are an excessive number of suppliers combined with fewer retailers, this can create challenges in distribution and logistics. Retailers act as intermediaries between suppliers and consumers, helping to streamline the flow of products and information. When there are fewer retailers, distribution networks can become strained, causing delays, inefficiencies, and potential shortages.
Economic stability relies on a balanced employment landscape. An overabundance of suppliers with limited retailers may lead to job losses in the retail sector, affecting consumer spending and the overall labor market. This can create ripple effects across various industries and reduce the purchasing power of consumers, ultimately slowing down economic growth.
Moreover, concentration of power among a few suppliers can lead to monopolistic tendencies, stifling competition and limiting consumer choice. Monopolies can dictate prices, control supply, and hinder market dynamics, negatively impacting economic stability.
Closing Thoughts
The disparities between cannabis cultivation facilities and retail facilities highlight the intricacies of the evolving cannabis landscape. While cultivation facilities require substantial investments in equipment and compliance, retail establishments focus on creating a positive consumer experience and normalizing cannabis use. Together, they form a symbiotic relationship that drives economic growth, job creation, and tax revenues.
As the cannabis industry continues to mature, it is crucial for stakeholders, policymakers, and entrepreneurs to recognize the importance of both cultivation and retail facilities. Striking a balance between these sectors will be vital for achieving a sustainable and prosperous cannabis market that benefits not only those directly involved in the industry but also the broader economy and society at large.
Member Blog: Novel Foods Applications Stalled?
The UK CBD market had an estimated value of £300 million in 2020 and by the end of 2022 estimates had doubled that figure. This goes to show that CBD being deemed a “novel” food in January 2019 has had little impact on market growth and if predictions are right will exceed £1 billion by 2025. With the FSA’s March 2021 deadline long behind us and having made submissions by the deadline, many companies will be feeling comfortable. However, it’s worth remembering that the authorization process is still on-going, so while products that are part of a validated application are allowed to remain on the market they are still not authorized as novel foods. And now with the FSA conducting market research to aid in their risk assessment of consumer CBD products, some concerning data has been published.
The FSA commissioned Fera Science Ltd to carry out a survey to obtain a brief overview of current CBD products on sale in England and Wales in order to help FSA’s risk assessment of CBD products. The products selected covered, oils, sprays and edibles (including drinks). The study collected various data on the products. This included testing for CBD content, cannabinoid profiles, heavy metals, pesticides, residual solvents, Polycyclic Aromatic Hydrocarbons (PAHs) & mycotoxins. A summary of the results are shown below:
Heavy metals (cadmium, mercury & lead) and arsenic were not detected in the majority of samples, meaning levels were below the limits of quantification of the method. Seven samples contained lead, four samples arsenic and two samples contained cadmium. Mercury was not found in any sample. A definitive statement as to whether products exceed maximum levels cannot be made due to uncertainty as to whether products would be classified as a food (i.e. oil) or a food supplement.
A low incidence of low levels of mycotoxins, with Fusarium mycotoxins found more frequently than aflatoxins and ochratoxin A, mostly at the methods reporting limit. Three samples were found to contain ochratoxin A at the methods reporting limit.
A total of seven pesticide residues were found across all of the products (each product was tested for over 400 pesticides). There are no specific Maximum Residue Limits (MRL) for CBD products.
One oil product was found to have PAHs above the regulated levels, if classed as a product for direct consumption. If classed as a food supplement the PAHs were within regulated levels.
Three samples contained residual solvents. One product was over the MRL.
Most products contained CBD close to the declared value. Two oils had substantially different levels than that declared (one higher and one lower). CBD was not detected in one of the drink products. These are potentially non-compliant with compositional and standards requirements.
Delta 9-THC was detected in 87 % (26) of the samples analysed. Of these 40% (12) were found to have THC+ (the total sum of illicit cannabinoids in the product) above the 1mg threshold.
Although Fera only tested a small number of products, the fact that such a large percentage of products were found to have issues is concerning to say the least. It throws into question how many other products currently on the market that are part of a validated NF application, but aren’t up to spec.
The next question is, are you 100% sure that your current market offerings meet their product specifications? If not then there’s no time like the present to take a closer look at your products and their manufacturing process. It’s also important to remember that if you do need to make changes then these changes need to be updated in your current regulatory filings.
If you would like to discuss this further, please reach out to us at info@arcuscompliance.com.
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