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VIDEO: Member Spotlight – Om Of Medicine

In this month’s video member spotlight, get to know Om of Medicine, a cannabis dispensary based in Ann Arbor, Michigan. Learn about their role in fostering a politically engaged and friendly community in their state of the art facility. Om of Medicine also collaborated with the University of Michigan conducting an IRB-approved pain study with hundreds of its patients which displayed a significant decrease in opioid use and an increase in quality of life.

 

Member Blog: Borrowing for Cannabis – What You Need to Know 

by Cheryl Dearborne, Director of Marketing and Financial Services at Lilogy

Now that cannabis is legal either medically or recreationally in 33 states, and hemp/CBD is federally legal, the cannabis industry is operating with high profit margins, and in order to scale and grow, cannabis companies require capital and financial services on par with any industry. However, the fight between cannabis progressive state laws and regressive federal laws lend to an unstable financial market for these budding companies.

Tax code 280E is a prime example of how cannabis merchants are playing on an uneven field. This tax code disallows cannabis companies to write-off business expenditures because cannabis (THC) is still considered a Schedule I controlled substance, thus creating smaller profit margins. The upside to that kind of disability from an investor’s point of view is that companies netting positively look particularly strong as they are doing so without the same financial privileges as most companies looking for capital. The same can be said for companies that are barely in the black, as they also are staying in operation sans privileges. 

However, due to regulations like 280E and the uncertainty behind the federal government’s stance on cannabis, access to capital can seem impossible. Let’s look at some educational tools to help you obtain access to that capital if and when you need it.

Start-up with a solid team

The cannabis industry today can feel over-saturated because business resources are scarce, leaving millions of interesting companies in the lurch for lack of funding. Therefore, start-ups can feel far removed from the ability to access capital. As we mentioned earlier, capital is necessary to scale and grow, and once potential funding is sourced, there are a few measures that can be taken to place your company as a top priority for funding. 

One such measure is building a solid team with industry (or position-relative) experience that proves your company has the ability to scale with the collective experience and success records of the executives attached. If any of your owners have a profitable company, it is always a possibility to use that company to guarantee your loan. We will address this further in the assets/collateral section below. 

Have clear financial needs and a plan for profit

The companies most qualifying for financing have projected income and a clear plan for obtaining those financial goals for at least 2-3 years out from the current business year. What would be most advantageous is if you can show how the money you borrow would work into your projected financing. 

For instance: Let’s say you want to borrow $1MM to purchase enough land to plant and harvest hemp and produce up to 30,000 lbs of biomass. Once on the market, you can project that you would make $1.5-2MM the following year once you put your product on the market (isolates, distillates etc). 

The golden facts about this deal are that the borrower in question presumably has seeds, an equipped lab to produce the biomass, etc. and relationships/contracts with distributors that plan to purchase more inventory. Inventory, biomass, equipment: these purchases and obtainable results are also assets, and assets are most valuable in the borrowing process.

Keep collateral in mind and leverage what you have

There are several options to obtain funding if you have collateral in your business. Lenders will consider equipment, real estate and certain types of transferable inventory to reach your funding goals. Before you begin shopping, take a full account of the assets you possess and consider an asset(collateral)-backed loan.  

Real Estate is the best collateral to accessing the max-funding for your qualifications If you have equity in any real estate (non-primary, if residential), you may qualify for a cashout-refi on your property or a collateralized business loan. The more equity the better. If you need $500k and would only qualify for $40k based on your business annual income (10-20% of your annual), owning over $500k in equity on your property would qualify you for a loan amount worth the value of the submitted property or group of properties. 

If you are looking to purchase equipment or own equipment in which you have considerable equity, you may qualify for an equipment loan. Lenders are willing to lend specifically to the amount of the equipment you’d like to purchase, or refinance equipment you already own and have considerable equity in ($50k and up). 

Inventory is valuable in the cannabis industry because the inventory itself is very valuable. Biomass can be used as collateral as long as there is a secondary market to liquidate the assets in case of a default. Some investors and lenders will even consider certain licenses in a collateral package. 

The most important advice to note is that investors and lenders love assets. The more hard-assets on your balance sheet, the better. If your investors and lenders know their money will be spent on tangible, recoverable items, you will have a higher chance of securing funding.

Documents 

Keeping and providing proper documentation of your business and its finances is the most important part of the process. Depending upon loan amount requested, your required documents will vary. It is worth it to prepare the following documents for submission to your lender of choice:

  • Lender Application (separate applications may be requested for real estate or equipment lending options)
  • 6-12 Months of Bank Statements and Merchant Processing Statements
  • 1-3 Years of Business Financials including Tax Returns, Profit & Loss, and Balance Sheet, and Accounts Receivables Reports
  • 1-3 Years of Personal Financials including a Personal Financial Statement and Personal Tax Returns
  • A recent tri-merge credit report for all Principals
  • Business Debt Schedule including any short-term or long-term debt
  • An Organizational Chart that explains your business, verticals and any relationships between your legal entity and any subsequent companies.
  • Real Estate Owned Schedule (applicable if you have real estate to offer as collateral)
  • Equipment Owned Schedule (applicable if you have equipment to offer as collateral)
  • Drivers License and Voided Check (no matter what lending options you choose)
  • Documentation or Information on Inventory (applicable if you are considering inventory for collateral)
  • If cannabis related, Cannabis license information, if applicable

Time to Fund

In my experience, I’ve seen a million-dollar, short-term business loan deal close within a day of applying and I’ve seen real estate deals close after 3 grueling months of work for both the lender and the borrower. The timing will depend on how quickly you submit all documents requested among other loan-specific factors. Be prepared for potential site-inspections, bank verification, conference calls with investors, appraisals and other unique requests based on the due diligence necessary for your file. I’ve stated before in previous blogs and I will say it here for the NCIA community, try not to borrow in a pinch. If you need a large investment in a day or a week, please don’t be discouraged, your potential lender will hustle for your company, but have some patience and give yourself at least a week to lock in a term sheet, and at least 30 days to close on any loan besides unsecured short-term business financing.  

I hope this is an encouraging and helpful article that will bring you closer to applying for funding. If you’re not sure if you’ll qualify, always reach out the funding specialist of your choice or several specialists from several companies to find a lender you trust to work efficiently and honestly on your unique opportunity. Don’t forget to rally for SAFE banking so that this entire process will be easier and accessible to many more companies large and small within this amazing industry. 

 


Lilogy

Cheryl Dearborne is the Director of Marketing and Financial Services for credit-investment firm, Lilogy in New York City. Her time at Lilogy has seeded a deep passion for educating borrowers in an effort to increase borrower eligibility and credit-worthiness throughout the American community of small business owners, especially so in Cannabis as merchants within the industry have substantial obstacles stacked against them until Federal Laws offer equitable protection and benefits. 

 

Watch The Webinar: Cannabis Extractions – Thoughts And Considerations

Learn more about cannabis extraction best practices, techniques, and methods in this webinar recording. Hear from speakers Dan Gustafik, President at Hybrid Tech, and Gene Galyuk, Chief Development Officer at Capna Systems.

 

 

 

2019 By The Numbers (So Far!)

August recess is winding down, and soon, Members of Congress will return to D.C. for the remainder of the year. This year, however, was a benchmark year for cannabis policy, and we still have four months left to go! Let’s take a look back on how 2018 compared to 2019 (so far!). 

2:

Number of Congressional hearings held on cannabis issues in the 115th Congress (2017-2018)

6:

The number of Congressional hearings as of August 2019 in the following committees:

House Small Business Committee
House Veterans Affairs Committee (2)
House Financial Services Committee
Senate Banking Committee
House Judiciary Committee

95:

The number of cosponsors the House version of the SAFE Banking Act garnered during the entire 115th Congress. 

206:

The number of cosponsors on H.R. 1595, the SAFE Banking Act, just in the first seven months of 2019.

0:

The number of Congressional markups held on a cannabis bill in the 115th Congress.

1:

The number of Congressional markups held on a cannabis bill in the 116th Congress. In March 2018, the House Financial Services Committee marked up H.R. 1595: the SAFE Banking Act. It passed out of Committee by a vote of 45-15. 

$108,550:

Total NCIA-PAC dollars raised for the 115th Congress (2017-2018)

$61,780:

Total NCIA-PAC dollars raised in the first 7 months of 2019. Our goal to raise $100,000 by the end of the year, so make sure you learn more about the NCIA-PAC here! 

We have been busy this year advocating for pro-cannabis policy reform and will continue pounding the pavement on Capitol Hill. We look forward to all of the successes yet to come in 2019 and beyond! 

Member Blog: What The Cannabis Market Can Learn From The Energy Sector About Overcoming Market Complexity

by Mike Elliott, Business Development Executive at DCM

In an industry where change is a constant, cannabis companies face big challenges when it comes to brand-building, communications, and bringing products to market. The sector’s complexity is only increasing, which is compounded by its continual evolution, along with tight, varied, fluctuating regulations, and in some cases, less-than-informed consumers. 

While the path forward may seem uncharted, in fact, similar market challenges exist in other verticals. With the right strategies and tools, these hurdles—including rigid regulatory conditions—can be overcome. If you’re looking for a roadmap for success, look no further than the U.S. energy sector – specifically, utilities. 

The recent shift toward deregulated electric and gas markets has created an environment strikingly similar to that of cannabis. Both sectors grapple with strict, unpredictable regulatory governance. Both must comply with state-by-state variances and prohibitive marketing. And both face the challenge of communicating with customers who are often unfamiliar with the sector’s legislation and production processes. 

By gaining an understanding of these obstacles, cannabis operators can improve their own market and regulatory navigation. Following are a few key lessons learned from energy.

 

  1. Changing regulations demand razor-sharp communications management

    For both energy suppliers and cannabis providers, regulation and compliance are determined at the state level. State-by-state laws vary widely and become increasingly complex when factoring in additional local and municipal regulations—not to mention continual review and change. This complexity has a direct impact on communications and brand management. Rules on communication and packaging—including, for cannabis, dosage—can diverge greatly and shift quickly. And there are few signs of this framework getting simpler.

Energy suppliers have addressed this complexity through variable, highly responsive communication platforms that can—very quickly and at scale—accommodate unique market requirements. 

For cannabis companies, similar success depends on razor-sharp management, including automation of intensive, often spreadsheet-based processes that are manually maintained and prone to error. Robust, technology-driven platforms can now deliver a wide array of materials efficiently and accurately across different markets, all while ensuring airtight compliance with each market’s specific regulations.

  1. New opportunities call for a fast, location-specific response

    Both energy and cannabis businesses must be agile and flexible when responding to new market opportunities. In adapting to fluctuating, state-by-state rules surrounding contract terms and conditions, energy providers have learned the hard way how inefficiency and error can delay market entry and reduce sales potential. 

Faced with similar circumstances, cannabis producers need the support of automated, location-specific marketing – technology that efficiently allows for customized, regional messaging across multiple markets and channels while ensuring locked-down branding and regulatory compliance. 

  1. Perception is everything when it comes to reaching consumers

    With deregulation, utility companies realized that many consumers were uninformed regarding the legislative changes and were unaware of product availability and their own ability to shop around. Educating consumers was key – and communicating to them a value proposition that would distinguish each provider’s offering from that of the competition. 

While cannabis is not entirely unfamiliar to many consumers, the dialogue around legalization and products remains similarly dogged by a lack of information and general misunderstanding. Cannabis companies must now shift those perceptions and educate potential customers on product safety and use. Producers must look at developing innovative communications supported by tools like automation, multi-channel communications management, and 1:1 marketing. These can help target, personalize, and monitor communications to better connect with consumers.

  1. With little room to communicate, companies need to get creative

    Utility companies are highly restricted in not only how they can make changes to billing and service charges, but also how they can market to consumers. The scenario is the same for cannabis companies, though regulations are even more complex and restrictive, with federal prohibition blocking most traditional means of advertising, including social and digital channels. 

Cannabis companies can combat these restrictions with genuinely creative thinking backed by a thorough understanding of the rules. That means combining market knowledge with creative expertise in a way that skillfully complies with regulations without breaking them. At the same time, creativity and customization cannot hinder efficiency. The right tools must be in place to make sure everything works together – for example, a platform that lets users customize branded collateral for different segments and channels, allowing for both efficiency and creativity – consistency and customization.

The bottom line: the stakes are too high for non-compliance

Fines for non-compliance in the energy sector can reach into the millions. Likewise, stiff penalties are levied for non-compliance in the cannabis industry. The financial implications can be devastating for cannabis producers – even more so if it comes to relabeling or pulling product from store shelves. To compound the risk, publicized mishaps can deliver a serious blow to consumer confidence for brands trying to win consumer trust.

With that in mind, navigating the highly regulated cannabis landscape takes careful planning, constant oversight, and the ability to stay ahead of evolving regulatory requirements. While the opportunity is promising, it requires tools, technologies, and strategies that streamline processes, mitigate risk, and increase speed-to-market. Charting your course depends on careful planning, trusted advice, and experienced partners – along with the ability to learn from those who have been there and done that. 


Mike Elliott is a Business Development Executive specializing in cannabis at DCM

From brand strategy and consumer insights to dynamic labeling and POS solutions, DCM helps build, protect, and bring to market North America’s largest cannabis brands. Learn more at http://www.datacm.com.

Looking Back On Ten Years Of Cannabis Reform – The Road Behind, The Struggle Ahead

By Morgan Fox, NCIA Media Relations Director

NCIA’s Media Relations Director, Morgan Fox

August in Washington D.C. means heat, which is probably a big reason why lawmakers take the month off and return to their home states before coming back to confront the issues of the day. With this Congress – which has been more supportive of cannabis policy reform than any in history – out on recess, it seems like a good time to reflect on how far we’ve come as a movement and as an industry, we well as to recognize how much farther we still need to go.

I’ve been working exclusively on cannabis issues for more than a decade, and when I started my first job in the field at the Marijuana Policy Project all those years ago, the landscape looked much different. At the time, there were only a handful of states with effective medical cannabis laws, and no states where it was legal for adults. Opponents would consistently claim that cannabis has no medical value with a straight face, and people would believe them. The nonsensical argument that providing medicine to sick people would somehow lead all teenagers to become addicted to hard drugs often ruled the day and frequently delayed reform efforts. Access to cannabis, even in states with good laws, was limited and hard fought. Cannabis consumption by anyone except the most seriously, visibly ill people was largely portrayed as criminal and immoral.

Now, cannabis is legal for adults in 11 states, D.C., and two territories; 33 states and several territories have comprehensive medical cannabis laws; and nearly every state allows cannabis in some form. Tens of millions of people can now safely access cannabis without fear of arrest. Dozens of states are looking at cannabis policy reform legislation every year, and we can expect to see several ballot initiative campaigns taking place next year.

As more and more states have regulated cannabis in some way, new legal markets have emerged, allowing the industry to grow and thrive in many ways. At the start of my involvement, there were a shockingly small number of cannabis businesses, and the problems they faced were quite different than what we tend to deal with today. Non-existent access to banking was of trivial concern when the threat of raids by armed federal agents was a daily concern. Videos of jack-booted thugs pointing rifles at disabled patients and dragging dozens of plants out of smashed windows were commonplace. Long prison sentences for cultivators and providers were the norm.

New state laws and increasing public acceptance helped to ease the crackdown on the cannabis industry, but the real game changer came in the form of an unexpected federal policy directive. In 2013, Deputy Attorney General James Cole issued a directive to federal prosecutors, telling them not to target businesses or individuals who were in compliance with state cannabis laws. Known as the Cole Memo, this directive did not carry the force of law and did not prevent the enforcement of federal prohibition. Some Department of Justice employees took it more seriously than others. However, it did drastically reduce the number of prosecutions of state-legal cannabis businesses, and gave people enough confidence to really pull out all the stops. Since then, the industry has grown and professionalized by leaps and bounds. Huge trade shows, once unheard-of, are now commonplace and attracting people from a wide range of professions. Businesses no longer hide in the shadows, but are actively competing for exposure. There are now more than ten thousand licensed plant-touching businesses in the U.S., and many thousands more ancillary businesses working in the cannabis space. According to a recent report by Leafly, more than 200,000 jobs have been created by the legal cannabis industry.

One of the most important changes to happen over the years is the increased and deeper focus on justice in the cannabis reform movement, including equity in the cannabis industry. Legalization has always been about freedom and justice, but it has largely been talked about in the general sense of the injustice of criminalizing people for consuming a substance that is objectively safer than alcohol. The disproportionate harms inflicted on people of color and the destructive impact that prohibition has had on entire communities for generations were well known to many, but it wasn’t until the ACLU released its groundbreaking report that these facts started gaining more attention in the public sphere. It has still taken far too long for this issue to come to the forefront of the cannabis policy debate, but things are moving in the right direction. Most modern legalization legislation now contains provisions related to expungement, community reinvestment, and equity in the emerging cannabis industry, and indeed these are now required in order to be taken seriously by voters, activists, and policymakers. But it wasn’t always so. 

During the ballot initiative campaign for Amendment 64, which would go on to pass in November 2012 and make Colorado the first state in the nation to regulate cannabis for adults, polling showed that including even a limited provision to expunge minor cannabis convictions would have killed the chances of victory. Fast forward to this year, where legislation to make cannabis legal in New Jersey stalled because it did not go far enough to address the disparate harms caused by the war on cannabis. Illinois, the first state to regulate cannabis through its legislature, included language in its legalization bill which passed earlier this year that will expunge the vast majority of marijuana convictions and will help to ensure that people of color can take advantage of the opportunities being created by the legal cannabis market. And even Congress is starting to come around, with multiple active bills containing restorative justice provisions being considered and a House subcommittee holding a groundbreaking hearing on the issue this summer.

Speaking of Congress, the differences between now and then could not be more stark. Until somewhat recently, there was little appetite for addressing cannabis policy reform, and tremendous opposition from both sides of the aisle. While states continued to pass cannabis legislation, most federal lawmakers wouldn’t go near the subject except to shut it down. Even those whose own states had passed good laws were actively undermining their constituents. In 2014, an amendment was added to the annual spending bill that codified the protections outlined in the Cole Memo, but only for medical cannabis programs. Despite this provision being included in all subsequent budgets, it was never extended to adult use programs. Progress on stand-alone bills related to cannabis was generally slow and did not receive serious consideration in either chamber.

This Congress has been extremely different. Dozens of cannabis bills addressing all sorts of issues have been introduced, often with bipartisan support. Hearings have actually been held and taken seriously in the House and Senate, often with mostly supportive testimony. The SAFE Banking Act, which would provide safe harbor for financial institutions to work with cannabis businesses and increase access to capital for small businesses and disenfranchised communities, has seen unprecedented movement and support this year. In the House, it has 206 cosponsors and was approved with a bipartisan vote in the Financial Services Committee. It now waits to be called for a vote, which it will likely win. In the Senate, despite some lingering opposition, key committee heads and Republican leaders are softening their stances and held an informational hearing on the bill last month. More comprehensive bills such as the Marijuana Justice Act, the FAIR Act and the MORE Act are being given more attention than we’ve ever seen for legislation that would deschedule cannabis. It seems that politicians are finally catching up to public opinion and are more comfortable with supporting reform in the open.

Some of the credit for this can be given to the media. When discussing this topic, I always like to relate a story told to me by my first boss in cannabis policy reform. In the late 2000’s, he called CNN’s newsroom to pitch a story about a new positive cannabis study. He identified himself and his organization at the beginning of the call, which prompted the person on the other end to start laughing so hard they had to put my boss on hold. When they finally returned, they greeted him by saying “OK, Mr. Marijuana. How can we help you?” Needless to say, the story did not get picked up.

For years, we’ve had to deal with a media environment where cannabis policy reform was treated as a joke at best, and as a horrible scourge at worst. Stories were riddled with bad puns (I can’t count the number of times I’ve seen the phrases “blunt truth” or “clearing the smoke” or “hazy proposition” in headlines), or only referred to cannabis as “pot” or something equally stigmatizing. Many of them took prohibitionists at their word as they spewed falsehoods and fear, while giving limited or no space to reformers. Most major media outlets were not even interested in looking at the issue to begin with.

All that has changed. Cannabis is finally being taken seriously, and news organizations are devoting massive resources to covering it and even creating cannabis beats for dedicated journalists. Dozens, if not hundreds, of cannabis-specific publications are now available, with advertisers clambering for space in them. The coverage is much more fair, and the puns are (mostly) gone. Changes in the way the media talks about cannabis have certainly had a positive impact on how the public, and by extension lawmakers, thinks about this issue.

It can be tempting to look at all this progress and pat ourselves on the back for a job well done, and in some senses it is deserved. Tens of thousands of otherwise law-abiding individuals around the country will no longer be saddled with the disastrous consequences of having a criminal record every year. Hundreds of thousands are gainfully employed in an industry that is steadily displacing the illicit market while making cannabis safer and less stigmatized. The federal government is getting closer and closer to making real progress on cannabis issues. Support for legalization is a ubiquitous topic in the 2020 presidential field and has become almost a prerequisite for being considered as a serious candidate. Two-thirds of Americans think cannabis should be legal for adults. All of this is a world away from where we were a decade ago, and the benefits being reaped because of the hard work of advocates are significant. 

But we have a long way yet to go.

There are still roughly half a million cannabis arrests in the U.S. annually, mostly at the state level. The majority of states have yet to regulate cannabis for adults, and support for doing so in many of them is still very weak. Advocates and industry leaders need to redouble their efforts to reach out to lawmakers, voters, stakeholders and communities, and work with them to pass sensible cannabis legislation. Even states with relatively good laws still need help: home cultivation is still illegal in Washington state, for example, and Vermont and D.C. do not yet have regulated cannabis markets or legal sales.

State and local restorative justice efforts have had limited success, to put it generously. Funds intended for community reinvestment have been diverted or delayed, and equity programs are sometimes being exploited by predatory operators. High application fees, arbitrary license caps, criminal record bans and other unnecessary barriers of entry are preventing marginalized people from becoming a part of this industry. Decreasing arrests, while vitally important, cannot be the only gain made by disproportionately impacted communities as we continue to reform our cannabis laws.

Despite growing support for change in Congress, cannabis is still a relatively low priority for most federal lawmakers. Without constant pressure on them, reform will come slowly or not at all. NCIA’s in-house federal lobbying team, as well as outreach efforts like our annual Cannabis Industry Lobby Days, help keep this conversation going at the Capitol and sway legislators to our side. Federal legalization is far from inevitable, and we are committed to maintaining and increasing our efforts to make sure it happens.

But we need your help. Now is the time to get involved, get active, and help end prohibition once and for all while we build a responsible, competitive, and inclusive cannabis industry. We still have much work to do, but if the accomplishments of the last decade tell us anything, it’s that we can do this together.

 

Committee Blog: The Employee Onboarding Process

by NCIA’s Human Resources Committee
Kara Bradford of Viridian Staffing, Kerry Arnold of Canndescent, Heidi Quan of Murchison & Cumming LLP, Nichole McIntyre of Urban-Gro, Michelle Whitmore of H2 Talent, and Mark Hackett of Emerge Law Group

You’ve found, interviewed, hired the right person for a position in your business, and they have just accepted your job offer. Congratulations! Now what? In the second part of our three-part series, the HR Committee shares insights on the Onboarding of employees. Onboarding new employees can be critical to ensuring happy and productive workers that understand the culture and expectations of your company. Having an organized procedure for bringing on a new hire is crucial for both the company and the new employee. Your company should be as prepared and ready as the new employee is expected to be for their first day. This can be a missed opportunity to make a great impression on your new employee.

In order to help your company with the onboarding process, a new hire checklist can be utilized to help ensure that you are covering all the necessary areas for a successful and smooth entry into your workforce. We have prepared two checklists for the onboard process. One is more administrative in nature while the other is designed to assist managers to help smoothly integrate and transition the new employee into your company. In some companies, a Manager may need to perform the tasks on both checklists if the company does not have an HR Manager.  

HR Manager Checklist

Starting with the HR Manager Checklist, it’s best to make sure that you’ve received a signed offer letter and/or employment agreement prior to the start date being determined. Some companies also prefer not to set a start date until the background check process has completed. Once this is completed, there are a series of steps to take prior to the new employee starting. You may need to order hardware/software, cultivation tools/equipment, etc. On their first day, it’s a best practice to have the worker complete all paperwork, including any W-4 documentation/I-9, etc, prior to starting on the job. We’ve also included instructions for I-9 completion

Data has shown that employees don’t leave companies, they often leave managers; so provide your managers with the resources they need in order to inspire more confidence in the new employee for their manager. If the Manager isn’t the individual filling out the paperwork with the employee, have the manager greet the employee as soon as necessary paperwork is completed. Having a manager focus their attention on a new employee as much as possible during that first day will help to solidify the new employee’s sense of belonging to the organization.  

Employee Onboarding Checklist For Managers

The manager should take time to introduce the new employee to all co-workers and other organizational stakeholders they may interact with while helping to familiarize them with the facility. The manager should then spend time setting/reiterating expectations of what the position entails and conveying any goals/metrics that the employee is required to meet. Finally, the manager should spend time training the new employee and setting them up for success, or delegating this to the appropriate subject matter expert on the team to do this. 

We often have companies tell us they are struggling to retain their employees. By providing an exceptional onboarding experience from the very first day, this will help the new employee to realize you value them and the talents they are bringing to your company, thus helping to feel welcomed and continue their contributions longer to your firm.  

In our next HR Committee Blog Post, we’ll provide a checklist with recommendations on how to handle Terminations.

Download The Onboarding Checklists Here:

HR Manager Checklist

Employee Onboarding Checklist For Managers

 

Keeping the Momentum During August Recess

by Madeline Grant and Michelle Rutter, NCIA Government Relations Managers

The sun is hot, and the halls of Capitol Hill are empty… it must be August recess, but as your congressional representatives take a break from their busy schedule in D.C., we are still hard at work in the nation’s capital. We are continuing the momentum that the 116th Congress has had in changing cannabis policy. This summer there were many important hearings and events. Let’s take a look back at a few of them:

  • In June, the House Committee on Small Business held a hearing entitled “Unlocked Potential? Small Businesses in the Cannabis Industry.” The hearing allowed members of the Committee to learn about the opportunities the legitimate cannabis industry presents for small businesses in states with legal cannabis, as well as entrepreneurs from traditionally underserved communities. The hearing also discussed the challenges also faced by “ancillary” or “indirect” cannabis businesses. The Chairwoman of NCIA’s Banking Access Committee, Dana Chaves, testified, as well as representatives from the Minority Cannabis Business Association (MCBA), the Veterans Cannabis Coalition (VCC), and The Heritage Foundation. In the testimony NCIA submitted for the record, we wrote, “[SBA] programs were specifically designed to stimulate economic activity and create jobs through small-business enterprises. Offering funding to the emerging regulated cannabis industry, which is mostly comprised of small businesses, would perfectly align with SBA’s primary objective to maintain and strengthen the Nation’s economy.” You can read NCIA’s full testimony here. 
  • In addition to the Small Business Committee hearing, there was a resounding, victorious Floor vote in June that put every single member of the House of Representatives on the record when it comes to cannabis. Known as the Blumenauer-McClintock-Norton amendment, this provision that was added to the Commerce, Justice, Science, and Related Agencies (CJS) Appropriations Act of 2020, passed by a vote of 267-165 and would prevent any federal funds from being used to target state-legal cannabis programs. The vote was decisive: it had support from all but eight Democrats and picked up 41 ‘Ayes’ from Republicans.  
  • In July, for the first time ever, lawmakers in the House of Representatives held a hearing to address the disproportionate ways in which marijuana prohibition has negatively impacted people of color and marginalized communities. The hearing, entitled “Marijuana Laws in America: Racial Justice and the Need for Reform,” was called by the House Judiciary Subcommittee on Crime, Terrorism, and Homeland Security and exclusively featured testimony from witnesses in favor of sweeping cannabis policy reforms. Notably, none of the members of the subcommittee or witnesses advocated for keeping cannabis illegal. 
  • Less than a month ago, the Senate Committee on Banking, Housing, and Urban Affairs held a public hearing, “Challenges for Cannabis and Banking: Outside Perspectives,” to discuss the current banking challenges faced by the legal cannabis industry and to assess the unintended consequences and public safety risks associated with commercial businesses operating in an all-cash environment. Earlier this year, to help find close the gap between federal and state cannabis laws, Senators Jeff Merkley (D-OR) and Cory Gardner (R-CO) introduced S. 1200 – The Secure And Fair Enforcement (SAFE) Banking Act, to provide protections for financial institutions that engage with state-legal cannabis-related businesses, including ancillary businesses that have a connection with cannabis businesses. The bill currently has 31 cosponsors in the Senate and is expected to have a House floor vote this Fall.  
  • NCIA stayed busy outside the halls of Congress, too. In June, NCIA responded and submitted public comments to the U.S. Food and Drug Administration’s (FDA) request for comments on Scientific Data and Information About Products Containing Cannabis or Cannabis-Derived Compounds. Given the substantial interest in this topic and the need for regulations and standardization throughout the industry, NCIA and this coalition are providing specific insight into all facets the FDA would like to examine, including health and safety risks, manufacturing and product quality, and marketing, labeling, and sales.

Since your representatives are not here in D.C., you don’t need to buy a plane ticket for them to hear your voice. Many representatives take this month to listen to their constituents, so there are many opportunities to speak to your members of Congress and make your voice heard. Go to https://townhallproject.com/ to find town halls in your area, invite your members of Congress to tour your business, or go visit their local office and schedule a meeting. 

This is an important time in our country – history is changing right before our eyes. Cannabis policy has taken huge steps just these past months, and we cannot let that momentum stop. With your continued advocacy and support, we can continue to lead the change in our community. 

Do you have questions or want to learn more about how you can help our efforts on Capitol Hill? We’d love to connect and tell you more via email or phone. Please send an email to Madeline@TheCannabisIndustry to set up an appointment to chat. 

 

Member Blog: Cannabis Retailers – Help Advance Cannabis Research

by Lisa Conine, Community Outreach Coordinator at Om of Medicine

Medical cannabis retailers are in the unique position of having large amounts of data available to them in the form of medical cannabis patients. Four years ago, Om of Medicine partnered with researchers at the University of Michigan to develop an IRB-approved survey study examining medical cannabis patients and their opioid use. We conducted a survey of 244 medical cannabis patients in Michigan with chronic pain for 3 months. The goal was to collect data to examine if using medical cannabis for chronic pain affected one’s opioid consumption. We saw testimonial evidence of this every day in our consultation rooms and we wanted to quantify that evidence to elevate our patient’s voices and bring them to decision-makers.

The results of that study displayed a 64% reduction in opioid use and a 45% increase in quality of life. The Journal of Pain published this research in their 2016 edition and since, the findings have been used as a tool for engaging with medical professionals and elected officials. Additionally, the results have been cited in publications such as the 2017 edition for the National Academies of Sciences, Engineering, and Medicine’s report: Health Effects of Cannabis and Cannabinoids. Soon after, the results were sited in Representative Earl Blumenauer’s Physicians Guide to Cannabis-Assisted Opioid Reduction. Blumenauer’s office took the initiative to put this document together and circulate it to his colleagues throughout Congress. These findings are intended to be a tool for advancing our advocacy for this movement and the patients we serve. You can find the study here and you are encouraged to use these findings in your lobbying and education efforts!

Currently, Om of Medicine is continually working to increase research around medical cannabis patient’s experiences. We now have launched our third IRB-approved study examining patient’s daily regimens, their knowledge on cannabis, and their relationship to their medical health care team. We are calling on the cannabis industry to help us increase our patient data set by circulating the IRB-approved survey to any networks you have with medical cannabis patients. 

The survey is quick to complete and is completely confidential. The published work is intended to be used as a tool for all working in the industry and movement to use it as a piece for engagement with policymakers and doctors. 

If you have any questions, you can reach me at lisa@omofmedicine.org. Sending out sincere gratitude to NCIA and participants who take this survey to aid in the advancement of understanding this plant and its revolutionary potential.

TAKE THE SURVEY


Lisa Conine is the Community Outreach Coordinator for the Om of Medicine, a medical cannabis dispensary in downtown Ann Arbor. Lisa works to prioritize relationships with Om’s local community non-profits, businesses, medical professionals, and elected officials. Outreach at Om is based in social justice and forwarding the cannabis movement by uplifting the work of partnering community organizations, providing education on cannabis to the public, and engaging politically, on all levels, to create sensible policy. Lisa is also a member of the newly formed NCIA Retail Committee.

WEBINAR: METRC – How to Stay Ahead & Maximize Efficiency

Everyone has METRC on the mind. Find out how METRC will impact your retail operations, what you’ll need to consider when it comes to compliance reporting, and how to maximize efficiencies to ensure being METRC certified doesn’t cost you precious time better spent running your business. Watch the webinar recording here.

 


 

SPEAKERS:

Jocelyn Sheltraw
Director of Regional Strategy, Headset

Brett C. Hartmann-Payan
Compliance Officer, Dosist

Anne Forkutza
VP Strategic Partnerships, Cova

Member Blog: New Data Reveals Market Share Changes for Cannabis POS Software Providers

by Ed Keating, Co-founder and Chief Data Officer of Cannabiz Media


Point of sale software providers are a critical part of the cannabis economy, and as the industry grows, a shift is happening. 

In the first half of 2019, the dominant POS providers of 2018 held onto their positions as market leaders. Others merged or were acquired, and new providers launched. Even big brands like NCR, NetSuite, and SalesForce entered the market joining Quicken and Square in an attempt to gain a piece of what they hope will be a lucrative market.

Cannabiz Media conducted a research study to identify POS software providers and market shares in mid-2019 and compared the data to findings compiled in a similar year-end 2018 report. The full report is available for free download here, and the results may surprise you.

Key Findings for Mid-Year 2019:

  • There are 68 unique POS software providers in the U.S. cannabis industry (up 58% from 43 in December 2018).
  • BioTrack is the market share leader overall.
  • BioTrack is the market share leader in states with medical-only cannabis programs.
  • Green Bits is the market share leader in states with adult-use cannabis programs.
  • Green Bits is the market share leader in METRC states.

Cannabis POS Market Share Shifts in the First Half of 2019

In mid-2019, the top five POS providers account for 68% of the overall cannabis market, and the top 10 account for 84% of the market.  Part of this change can be attributed to active California licenses expiring and revisions to the survey methodology. 

Compare those numbers to how things looked at year-end 2018 when the top 5 POS providers made up 80% of market share, and the top 10 were responsible for 93% of the market.

In addition, the number of POS vendors servicing cannabis businesses increased by 58% from 43 in December 2018 to 68 by July 2019. 

In other words, while the market is still highly concentrated, the market leaders have given up some market share, and new companies continue to enter the space. 

The same shifts are happening in medical-only and adult-use states. 

In mid-2019, 34 POS providers were active in medical-only states (up from 15 in December 2018), and 53 were active in adult-use states (up from 40 in December 2018). 

At year-end 2018, the top five POS vendors accounted for 94% of the market in medical-only states, but in July 2019, they only account for 70.4% of the market. 

In adult-use states, the top five vendors accounted for 78% of the market in December 2018 but only account for 71% of the market in mid-2019.

Top Cannabis POS Software Providers in Mid-2019

According to Cannabiz Media’s research, the top five cannabis POS software providers overall in mid-2019 are:

  1. BioTrack
  2. Green Bits
  3. Flowhub
  4. MJ Freeway
  5. Indica Online

In medical-only states, the top POS software providers in mid-2019 are:

  1. BioTrack
  2. MJ Freeway
  3. Indica Online
  4. Flowhub
  5. COVA

In adult-use states, the market share leaders in mid-2019 are:

  1. Green Bits
  2. BioTrack
  3. Flowhub
  4. Adilas
  5. MMJ Menu

In METRC states, the top five POS software providers in mid-2019 are:

  1. Green Bits
  2. BioTrack
  3. Flowhub
  4. Adilas
  5. MJ Freeway

Key Takeaways

While the POS market leaders have lost some market share in recent months, the biggest battle appears to be among the top two companies, which have approximately twice as much market share as the company ranked in third place in the overall market as well as in adult-use states and METRC states. In the meantime, the other 66 POS providers that service the cannabis industry are slowly chipping away at that share.

Get the Free Report with Detailed Data, Charts, and Commentary

Visit https://cannabiz.media/pos-report-2/ to download Cannabiz Media’s complete “Point of Sale Software in the Cannabis Industry: 2019 Mid-Year Report” for free to view all of the detailed market share data, the full list of POS vendors in the cannabis industry, 2018 vs. 2019 comparisons, and specific data about POS providers in the California and Oklahoma markets.


Ed Keating is a co-founder of Cannabiz Media and oversees our data research and government relations efforts. He has spent his whole career working with and advising information companies in the compliance space. Ed has overseen complex multijurisdictional product lines in the securities, corporate, UCC, safety, environmental and human resource markets and focuses on workflow products. Ed has spent the last twenty five years in the information industry.  During that time he has worked for both startup and established information companies where he has led marketing, product management and sales organizations.  These companies include Wolters Kluwer/Commerce Clearing House, CT Corporation, EDGAR Online and Business & Legal Reports. At Cannabiz Media, Ed enjoys the challenge of working with regulators across the country as he and his team gather corporate, financial, and license information to track the people, products and businesses in the cannabis economy. Ed graduated from Hamilton College and received his MBA from the Kellogg School at Northwestern University.  He has been active with the Software & Information Industry Association for his whole career and managed the Content Division for six years.  He’s was recently a Trustee at the Country School in Madison CT and a Little League Coach for seven years.

 

How To Get Involved In National Politics This August – Without A Plane Ticket!

by Michelle Rutter, NCIA Government Relations Manager

Maybe it’s the heat and humidity of D.C. that drives people out of the Beltway – after all, our nation’s capital was built on a swamp! But each year during the month of August, Congress “recesses” or goes home. Traditionally, this time has been used for Members to return home to their districts and meet with constituents and, of course, campaign for re-election. This makes August a quiet month in D.C., but it’s a great time for you and your colleagues to get involved with the political process, engage with Members of Congress, and educate them on cannabis policy. 

Since this year has been one for the history books when it comes to cannabis policy in Washington, D.C., we want to make sure your Representative and Senators hear from you during recess. Here are some ways to get involved with the political process – without having to travel to DC! 

Attend a town hall

During August recess members of congress tend to hold town halls during their district work periods. Go to https://townhallproject.com/, type in your zip code and find town halls in your district. If there are some being held, prepare a question or two to ask your Representative or Senators and get them on the record about cannabis policy!

Invite Members of Congress to tour your business

Even though cannabis is arguably more mainstream than it’s ever been, many elected officials still have not had the chance to experience what the responsible and legal cannabis industry looks like firsthand. Whether you’re involved with growing, processing, or dispensing cannabis, or operate an ancillary business, offering a tour to a Member of Congress and/or their staff is absolutely invaluable to them. Reach out to your elected officials’ district office and ask if they would be interested in a tour – they are likely more curious than you would expect!

Schedule a meeting with the Member’s district office

August recess means Members of Congress are home for an entire month and is a great opportunity to meet with them and their staff! There are very few things more compelling than a personal story when talking to elected officials, so whether your experience has been with the benefits of medical cannabis, the unfair tax burden of 280E, or the struggle for traditional banking, so be sure to schedule an appointment with your district office to tell that story. Find out who your Representative and Senators are and visit their website to see where their district office is located.

Call your Representative and Senators

Although Congress leaves D.C. during the August recess, that doesn’t mean the phones stop ringing! Call their D.C. and district offices to urge them to support our priority legislation. You can find out who your Representative and Senators are and how to call them here.

Whether you’re talking to a Member of Congress or their staff at an event, or just giving their office a call to ask for their support, remember these easy tips:

  • Know what you want to say. Write down or get familiar with some talking points that you want to relay. For example, you can include asking the elected official to cosponsor a specific bill, tell your personal story about your cannabis business, or simply just share your views on cannabis policy.
  • Nicely introduce yourself. If on the phone, state your name, address and telephone number so they can submit your comments into the congressional system.
  • Identify yourself as a concerned voter. Make sure that they understand that you are a concerned voter and tell them “I would like to express my support for the SAFE Banking Act, HR 1595/S. 1200”.

We all have a responsibility to educate and engage with elected officials in order to change the perception surrounding cannabis. August recess is the perfect opportunity to get involved with federally elected officials without having to leave home! If you need advice, help, or materials to assist you, remember to contact NCIA’s Washington, D.C. office by emailing Michelle@TheCannabisIndustry.org.

 

VIDEO: Member Spotlight – ArborSide Compassion

Based in Ann Arbor, Michigan, ArborSide Compassion is a medical marijuana dispensary that has been operating since September 2011. Founder and CEO Rhory Gould has been a cannabis activist for over 35 years. The staff at ArborSide services over 1,200 patients per week and has won over 22 HIGH TIMES Cannabis Cup awards. Learn more about their products and services, and how they are navigating the licensing changes for medical and adult-use cannabis in Michigan as new laws are rolled out.

Public Hearing on SAFE Banking Act In Senate Banking Committee

by Michelle Rutter, NCIA Government Relations Manager

While you, your business, and much of the NCIA team were busy at our Cannabis Business Summit in San Jose, we’ve still been working hard for you back in Washington, D.C.

Just yesterday morning, the Senate Committee on Banking, Housing, and Urban Affairs held a public hearing, “Challenges for Cannabis and Banking: Outside Perspectives,” to discuss the current banking challenges faced by the legal cannabis industry and to assess the unintended consequences and public safety risks associated with commercial businesses operating in an all-cash environment. Earlier this year, to help find close the gap between federal and state cannabis laws, Senators Jeff Merkley (D-OR) and Cory Gardner (R-CO) introduced S. 1200 – The Secure And Fair Enforcement (SAFE) Banking Act, to provide protections for financial institutions that engage with state-legal cannabis-related businesses, including ancillary businesses that have a connection with cannabis businesses.

During the hearing, much of the discussion surrounded how financial institutions currently provide services to cannabis-related businesses under the Treasury Department’s Financial Crimes Enforcement Network 2014 guidance, the implementation of the SAFE Banking Act, and potential threats to the general public. One of the witnesses, Ms. Rachel Pross, Chief Risk Officer at Maps Credit Union, cited a 2015 report by the Wharton School of Business estimating, “one in every two cannabis dispensaries were robbed or burglarized with the average thief walking away with anywhere from $20,000 to $50,000 in a single theft.”

Banking Committee Chairman Mike Crapo (R-ID) dedicated much of his time to understand how the SAFE Banking Act would regulate financial institutions and ensure the banking industry could and operate in compliance with a business selling a Schedule I product. Towards the end of the hearing, Crapo said, “I think the case has been made pretty strongly here today about the need to get the banking industry issues relating to cannabis resolved.”

Key Takeaways:

 • Chairman Crapo acknowledged the disconnect between federal and state cannabis banking laws, and implied an openness to advancing the SAFE Banking Act if certain compliance and regulatory issues were clarified, even if marijuana was not necessarily de-scheduled.

• Chairman Crapo’s line of questioning overwhelmingly focused on how financial institutions, operating under varying state cannabis laws, would comply with federal regulation for a federally illegal product, rather than rescheduling marijuana before attempting banking reforms. Also, Chairman Crapo addressed questions mostly to all the witness rather than to one person and did not push one position over another.

• Besides Chairman Crapo, no other Republican Senators on the Banking Committee attended the hearing.

• The SAFE Banking Act is still the best and most supported legislative vehicle to address cannabis-related banking issues.

You can take action to help our industry TODAY. Call your Senators and ask them to support S. 1200: the Secure And Fair Enforcement (SAFE) Banking Act.

Committee Podcast: The Emerging National Hemp Market

In this interview, industry specialist and NCIA Infused Products Committee member Ashley Hanson of Humboldt Green Light Kitchen speaks with Mike Perry, President and founder of PNX Botanicals, about the emerging national hemp market. Ashley and Mike discuss the relationship between cannabis and hemp products, the effects of regulation on small and medium-sized businesses, and testing standards for hemp CBD products. With state and federal governments rapidly developing new regulations, the conversation focuses especially on improving the conversation surrounding dosing, labeling, and product quality standards.

 

 

NCIA’s Infused Products Committee focuses on edible and topical products, reviewing existing business practices and state regulations. Regulation of these products is the IPC’s initial key focus, but the committee’s purpose is to ensure the infused product sector is helping shape its destiny, rather than being driven by differing jurisdictional regulations. The IPC is also working with the Council on Responsible Cannabis Regulation (CRCR) to develop standardized regulations for legislators and regulators to adopt as their states legalize the industry.

NCIA-PAC: Elect And Keep Our Champions On Capitol Hill

by Maddy Grant, NCIA Government Relations Manager

How does NCIA keep the momentum going on Capitol Hill? In the 116th Congress we’ve seen progress and support on cannabis issues unlike any Congress before – this is a historic time for cannabis reform!

The Secure and Fair Enforcement (SAFE) Banking Act of 2019, which is now up to 206 cosponsors in the U.S. House of Representatives, up from 95 cosponsors in the 115th Congress, is expected to have a House vote at some point in in July. 

The McClintock-Blumenauer-Norton amendment, which would protect ALL cannabis businesses from federal interference, passed the House with a vote of 267-165.

Our very own NCIA member, Dana Chaves, testified in front of the Small Business House Committee and expressed the urgency for our cannabis businesses to get access to financial institutions. These are just a few of the monumental successes we have reached this year – and it’s only June. We see the momentum growing and we need to keep the pressure on. 

So what does this have to do with the NCIA-PAC?

Through our NCIA-PAC we are able to fiscally aid supporters of the cannabis industry, not only elected officials, but people running for congressional office. For example, leading up to the midterm election, the NCIA Government Relations team made sure we supported close races where cannabis-friendly candidates were running against cannabis opponents. One race I distinctly recall, Nevada’s third congressional district. Susie Lee, who is a supporter of cannabis, was running against incumbent Congressman Danny Tarkanian, an opponent of cannabis. Michael Correia, NCIA’s Director of Government Relations, and I met with Susie Lee in Las Vegas and we began to discuss how close her race had come and how every single PAC dollar would help her win. At that point, we contributed $1,000 of NCIA-PAC dollars to Susie Lee’s campaign and she beat incumbent Danny Tarkarnian. This is just one race where our contributions made a difference. 

Congresswoman Susie Lee from Nevada has been a supporter of cannabis issues and with NCIA-PAC dollars she can continue to represent our industry on Capitol Hill.

This wasn’t the only race that was close in 2016. The NCIA-PAC supported and helped elect 45 cannabis champions to Congress, including 15 Democratic challengers who successfully unseated incumbents who opposed reforming our outdated federal marijuana laws. Many of these races were won on razor-thin margins, which proves how far this support goes to enact change on the Hill. The NCIA-PAC aided to grow our support on Capitol Hill while establishing good relationships and educating Members of Congress. 

Freshman member, Congressman Gil Cisenors, has been supportive of cannabis issues on Capitol Hill.
Government Relations Director, Michael Correia, attending Congresswoman Dina Titus fundraiser. Thanks to NCIA-PAC dollars we could attend and thank the Congresswoman for all of her work.

 

 

 

 

 

 

 

 

 

 


At the 9th Annual Cannabis Industry Lobby Days in May, we had 21 Members of Congress attend our PAC fundraiser. Congressional members showed up and spoke to NCIA members about cannabis issues on Capitol Hill and how supporting their races are crucial to allow them to continue to fight for our issues. Over and over we heard from these members about the importance of getting the right people in office that will fight for what their constituents care about. The NCIA-PAC helps us do just this, and every single dollar helps. It is time to end marijuana prohibition and to hold our congressional leaders accountable to represent the will of their constituents. Help us keep our champions on Capitol Hill and continue to add more! Whether it’s $5 or $5,000, every single dollar counts. 

If you want to get involved in the NCIA-PAC, visit this page to learn more.

 

Member Blog: The Power Of Numbers

by Kary Radestock, Hippo Premium Packaging

This month, the cannabis industry gathers in San Jose for the NCIA’s 6th Annual Cannabis Business Summit & Expo. It is projected that nearly 10,000 people will attend. 

Think about that number for a minute. Ten thousand. Just a handful of years ago, some cannabis conferences were struggling to attract 500 people. 

This explosion in the cannabis industry has had a profound effect on our nation:

Tens of thousands of businesses have started – spurring economic growth and creating hundreds of thousands of jobs. According to Leafly, there are now more than 211,000 cannabis jobs across the United States. More than 64,000 of those jobs were added in 2018. 

Legal cannabis is currently the greatest job-creation machine in America. The cannabis workforce increased 21% in 2017, gained another 44% in 2018, and is expected to grow another 20% in 2019. Those are record-setting numbers.

Real estate is another sector that is booming thanks to legal cannabis. A recent study led by a by a University of Mississippi economist concluded that legal retail cannabis in Colorado increased housing values. Researchers compared cities that permitted the sale of cannabis with those that did not and found that the availability of recreational cannabis in a given area created strong housing demand and higher increases in property values.

Clearly, legal cannabis is creating jobs, opportunities, and economic growth. 

But there is a dark side to the cannabis numbers. According to the American Civil Liberties Union, arrests for cannabis possession account for over half of all drug arrests in the United States. In 2017, 659,700 were arrested in the U.S. for cannabis. Over 90% of those arrests were for simple possession. Moreover, 46.9% of people arrested for drug law violations are Black or Latino, despite making up just 31.5% of the U.S. population. Additionally, over 200,000 students have lost federal financial aid eligibility because of a drug conviction.

As a nation, we must ask ourselves, how does imprisoning someone or taking away their chance at receiving an education because they possessed a small amount of cannabis (or other drug), make our country better, stronger, or greater?

Since this blog is dedicated to numbers, I’ll leave you with this one: It takes 100,000 atoms to become visible to the human eye, and even at that amount, it is only about the width of a human hair. 

But it takes far fewer people to make a difference in society. Our last presidential election was won by the candidate that received over 2 million fewer votes, but won the electoral college by having just a few more votes in some key states. Just 0.2 points or about 10,000 votes separated the candidates in Michigan. Only 0.7 points or about 22,000 votes made the difference in Wisconsin.

This is not a time for us in the cannabis industry to be complacent. We have won some hard-fought victories, but there is still much to do, many wrongs to right, and a lot of work ahead. 

My hope is that everyone in this amazing industry will share the belief that while we have a lot to be thankful for, we still need to keep moving forward and progressively for a better future. 

Get involved. Make your voice heard. And vote. 

Enjoy the conference!


CEO Kary Radestock

Kary Radestock, CEO, launched Hippo Premium Packaging in March 2016 offering an array of services to the cannabis market, including: Marketing Strategy, Brand Development, Social Media, Public Relations, Graphic and Web Design, and of course, Printing and Packaging. Radestock brings over 20 years of award-winning print and packaging expertise, and leads a team of the nation’s top brand builders, marketers and print production experts. Hippo works with businesses looking for a brand refresh or an entire brand development, and specializes in helping canna-business get their products to market in the most beautiful and affordable way possible. Radestock’s Creative Collective of talent and experts, allows her to offer world-class solutions to support the unique needs of the Cannabis Industry. 

 

 

Ten Reasons To Join Us At #CannaBizSummit In Ten Days

The 6th Annual Cannabis Business Summit & Expo begins in TEN DAYS! So we’re bringing you TEN reasons why you should make plans to join us:

  1. Your Registration Dollars are Put to Work
    Most industry events are out to make a buck. But when you attend one of NCIA’s business events, the money you spend goes right back into advocacy for you, your business and the cannabis industry in general.

  2. Conference Sessions Featuring Known Industry Leaders
    #CannaBizSummit brings in known names in the trade that are experts in their fields. Hear from those who have experienced the same issues as you and know how to deal with them. We spend weeks creating the highest quality agendas, with carefully curated speakers and industry hot topics so that you may walk away from our events with not only a refreshing take on the cannabis market but actionable tips and tricks for your business.

  3. SOLD OUT Expo Hall
    NCIA events have the proven highest concentration of buyers and sellers of any other industry event, and exhibitors have been pre-qualified and are of the highest caliber. Network with your peers and explore the exhibit hall with more than 400+ exhibitors (all NCIA members) on our SOLD OUT expo floor!. Whether you’re looking for business solutions, extraction, distillation, or grow equipment – you’ll find it on the expo floor.

  4. Full Day Workshops
    NCIA has gone above and beyond to create an inspiring three-day learning experience. Not only will you be able to hear from experts in a variety of fields during our core conference program, but you can enhance your experience with an intimate, classroom-like setting in one of our exclusive pre-conference workshops. Join us for Cannabis 101, Managing for Success, INCBA Regulatory Rounds, CannaVest Investor Forum or The HEMP Biz Conference.

  5. Full Day and Half Day Tours
    #CannaBizSummit tours offer a fun, interactive experience and a first-hand look at some of the most prominent cannabis businesses in northern California. Tours include the Santa Cruz, East Bay and Legion of Bloom full day tours, as well as a morning and afternoon half day tour of San Jose. Register soon – some of our tours are close to selling out!

  6. Thought-Provoking Keynote Speakers
    Don’t miss this lineup of heavy hitting industry pioneers as they take the stage to discuss everything from global expansion to athletics in these not-to-be missed opening sessions! We’ll be joined by Mike Lee, Executive Vice President & CFO from Canopy Growth Corporation, who will be sharing his unique outlook for the industry. Hear the Latest in Cannabis Research and The Impact on Athletes with Dr. Jefferey Chen, physician and researcher at The UCLA Cannabis Research Initiative. He’ll be joined by Anna Symonds (USA Rugby), Nate Jackson (NFL), Frank Shamrock (MMA, and Jim McAlpine (Creator of 420 Games) who will share their own experiences and benefits of using cannabis for recovery.

  7. Additional Education on the Expo Floor in the Elevation Lounge
    If you’re looking for more education outside of our conference program, the Elevation Lounge in booth #1642 is where to find it. We have eleven, 20-minute educational sessions and the best part—they’re free to all attendees.

  8. No Consumers – We’re All business Here
    #CannaBizSummit is a serious place to do business. We’ve heard repeatedly that if you are serious about meeting people in the industry that can help take your business to the next level, #CannaBizSummit is where you want to be. Unlike other events we’re not focused on consumers, it’s all about business to business relationships here.

  9. Networking with Other Cannabis Professionals
    Join entrepreneurs, thought leaders, and policymakers to expand your influential industry network. Create meaningful connections with fellow cannabis peers.

  10. Blues & Buds Celebration
    Join thousands of industry professionals and friends at the Blues & Buds celebration featuring actor, musician and cannabis farmer, Jim Belushi and the Big Blu Soul Review! All are welcome, but you must RSVP to attend. Enjoy light appetizers, drinks and dancing with friends.

Register today and plan on gaining invaluable insights and best practices for both the novice and experienced cannabis business owner. 

 

Re-Cap of House Judiciary Hearing on Marijuana Laws in America

On Wednesday, for the first time ever, lawmakers in the House of Representatives held a hearing to address the disproportionate ways in which marijuana prohibition has negatively impacted people of color and marginalized communities. The hearing, entitled “Marijuana Laws in America: Racial Justice and the Need for Reform,” was called by the House Judiciary Subcommittee on Crime, Terrorism, and Homeland Security and exclusively featured testimony from witnesses in favor of sweeping cannabis policy reforms.

Notably, none of the members of the subcommittee or witnesses advocated for keeping cannabis illegal.

Rep. Tom McClintock (R-CA) participated as acting subcommittee Ranking Member, and began his opening statement by saying, “Marijuana decriminalization may be one of the very few issues upon which bipartisan agreement can still be reached in this session.” He added, “it ought to be crystal clear to everyone that our laws have not accomplished their goals.”

Chairwoman of the subcommittee, Rep. Karen Bass (D-CA), also gave strong opening remarks: “The collateral consequences of even an arrest for marijuana can be devastating. These exclusions create an often permanent second class status for millions of Americans. Like drug war enforcement itself, these consequences fall disproportionately on people of color.”

While there seemed to be a consensus on reforming our outdated cannabis laws, how to reform them was more murky than anything else. Essentially all of the Republicans who spoke during the hearing iterated their support for the Strengthening the Tenth Amendment Through Entrusting States (STATES) Act, while Democrats on the subcommittee stressed the need for reforms that address equity, inclusivity, and diversity — which the STATES Act does not address in any way.

NCIA’s written testimony, submitted at the hearing by Rep. Steve Cohen (D-TN), urges Congress to remove cannabis from the Controlled Substances Act (commonly known as de-scheduling); to enact legislation repairing the damage prohibition has inflicted on communities of color; and to begin the process of regulating cannabis products at the federal level. However, NCIA also recognizes that the STATES Act (and other incremental reforms) deserve the support of the industry, given that it addresses many of the problems plaguing cannabis businesses today.

On behalf of the largest and most-diverse membership base of any cannabis trade association in the U.S., NCIA’s team in D.C. is continuing to work with allies in Congress to end federal prohibition and replace it with federal jurisdiction that benefits an inclusive, diverse, and legal cannabis industry.

NCIA thanks our nearly 2,000 members who have made this progress possible. If your business is not yet a member of NCIA, please join the movement today.

Top Ten Reasons NCIA Supports De-Scheduling Cannabis

Today, the House Judiciary Committee (Subcommittee on Crime, Terrorism and Homeland Security) is holding a hearing on marijuana policy reform proposals and related social equity provisions. While NCIA supports the STATES Act and other incremental approaches to reform, we strongly prefer a longer-term approach that includes de-scheduling cannabis and the inclusion of robust social equity provisions. Let’s get this right the first time around.

Below are the top ten reasons to support de-scheduling: 

1. De-scheduling is good public policy because cannabis should not be classified alongside dangerous drugs like heroin and methamphetamines, and cannabis has proven medicinal properties and is safer for adults than alcohol and many over-the-counter medicines.  

2. De-scheduling automatically solves the banking problems plaguing the cannabis industry and automatically cures issues related to the unfair tax provisions imposed by 280E.

3. De-scheduling removes many of the roadblocks in the way of creating an industry that prioritizes and promotes social equity and inclusion.

4. De-Scheduling would allow for cannabis to be transported across state lines in accordance with interstate trade compacts, opening opportunities for licensed growers to get their product into more markets and to stabilize supply and demand issues currently facing some state markets.

5. De-scheduling takes regulatory authority away from the DEA and creates opportunities for the federal government to regulate marijuana through FDA and Treasury with regimes that are more appropriate, given the relative harm of cannabis compared to other adult products.

6. De-scheduling immediately makes federal research and grants possible. 

7. De-scheduling immediately changes current immigration policy that prohibits people with “bad moral character” from applying for citizenship because of their work in the cannabis industry. 

8. De-scheduling allows for the provision of bankruptcy protection for cannabis-related businesses.

9. De-scheduling would allow veterans access to plant-based medicine and retention of VA benefits if they choose to use medicinal marijuana.

10. De-scheduling still allows for state autonomy while simultaneously providing for federal continuity.

 

Partner Blog: Legal Education – The Cannabis Regulatory Rounds Presented by INCBA

by Christopher Davis, International Cannabis Bar Association

The International Cannabis Bar Association (INCBA) is excited to present the fourth iteration of our in-person educational partnership with the National Cannabis Industry Association’s Cannabis Business Summit and Expo.

This year, INCBA is thrilled to showcase a full day set of educational sessions on July 22, 2019 in San Jose, California that sets the bar for legal education in the cannabis industry and offers 6.5+ credits of Continuing Legal Education (CLE) in select jurisdictions. Already renowned for presenting the highest-quality legal education in the legal cannabis, INCBA has continued to refine and enhance our in-person educational offerings, and we have something special in store for our attorneys at NCIA’s #CannaBizSummit this year.

Instead of focusing on substantive topic areas (like IP, finance, or real estate), we have decided to offer a special set of sessions focused on regulatory issues that face each business type that operates in this unique industry. Loosely based on license type, our educational sessions will focus on specific stops on the vertical stream of commerce, beginning with specific issues related to cultivators, moving through multi-state manufacturing and distribution, and then addressing to E-commerce. We will take a close look at the current bottleneck in many jurisdictions – testing laboratories – and at labor and workforce considerations that affect businesses across all the above license types. In short, we are giving you what you need to know to serve your clients in the cannabis industry no matter where their focus lies.

And, just to make sure you get those valuable nuggets of information, we have made sure that every panel features a regulator that can speak directly to the concerns that you must address when advising your client. INCBA has become known for featuring the top practitioners in the country on each of our panels, and now you get to watch them discuss their approach to regulation with the people in charge of enforcement.

In addition, INCBA is excited to present the most substantively and jurisdictionally diverse set of panels that we have ever featured. No more than two attorneys from any given state sit on a panel, which means that we will be covering topics that are relevant across state lines. And, because California’s regulatory system has come online this year, it serves as the perfect foil to compare and contrast differences in jurisdictions, failures and successes of regulatory structures, and the major pain points your clients face – no matter from what state they hail.

To make sure we end the day on the right note, and to ensure that you have the opportunity to create the lasting connections that will serve you throughout your practicing career, INCBA will be hosting one of our signature after-parties at the beautiful Mosaic Restaurant and Lounge at the Sheraton Hotel in downtown San Jose. After a long day of education, come to Mosaic to network with some of the best cannabis attorneys around. The party includes light bites and drinks, as well as Bocce ball and Giant Jenga. Find the panelists you enjoyed the most, see old friends, and make new ones to lay the foundation for a lifelong successful practice in this special industry.

As the first (and only) specialty bar association that exclusively serves the business needs of the cannabis industry globally, INCBA is the hub where cannabis industry lawyers come together to connect with each other, share information, and learn the tools necessary to further their clients’ interests in the legal cannabis industry. As Steve Shain of Hoban Law Group recently proclaimed – “It’s not whether you can afford to be here, it’s whether you can afford to not be here.”

WEBINAR: Streamlining Your Packaging Process and Innovating for the Future

Watch this webinar from NCIA’s Packaging & Labeling Committee: Streamlining Your Packaging Process!

Learn from expert panelists: Brian Smith, Satori Wellness; Lisa Hansen, Plaid Cannabiz Marketing; and Karen Bernstein, Bernstein IP.
Moderated by Mauria Betts, Potency.

Be sure to join us at NCIA’s 6th Annual Cannabis Business Summit & Expo in San Jose, California, on July 22-24, 2019 at the Wednesday afternoon panel session titled “Cannabis Packaging: Evaluating, Streamlining, & Innovating.” Presented by members of NCIA’s Packaging & Labeling Committee, this panel session will dive into key aspects of cannabis packaging that impact today’s businesses.

VIDEO: June Policy Update With Aaron Smith, NCIA’s Executive Director

There’s been so much progress on cannabis industry issues so far this year. Hear more about the forward movement and victories we’ve seen in Congress on issues like the SAFE Banking Act, which has passed through the House of Representatives and is now in the Senate, and the House also voted to include protections for adult-use cannabis businesses in legal states through the Department of Justice budget vote process. Plus, Illinois becomes the 11th state to enact adult-use cannabis laws. NCIA’s Co-Founder and Executive Director Aaron Smith joins us to review this positive momentum.

 

Contact your elected officials today and ask them to support pro-cannabis reform legislation!

Video: Member Spotlight – Anresco Laboratories

In this month’s video spotlight, learn about how Anresco Laboratories went from an analytical lab serving the baking industry to getting involved in cannabis testing in 2015. At Anresco, they now conduct metals testing, microbiology, chromatography, HPLC, and are heavily involved with cannabis advocacy efforts!

A Brief History of Cannabis in the U.S.

The history of cannabis and the United States in a tenuous one. The most horrific parts of that history are the injustices that the racist war on drugs and cannabis prohibition has caused, as well as the millions of lives both have destroyed. However, the dichotomy of history, cannabis, marijuana, and hemp have been an integral part of American life for centuries. This week, to honor Independence Day, we wanted to talk about that legacy.

It All Began with Hemp

It begins in Colonial Virginia with hemp. In 1606, King James I granted the Virginia Company a charter for Jamestown, however, by 1619, England needed financial help from the colony. As a result, the Virginia Company required Jamestown’s land owners to grow and export 100 hemp plants to help their motherland. Over a century later, George Washington even famously noted in his diary about the sowing of hemp seeds each day until mid-April and later recounted that he grew 27 bushels of the crop that year. Throughout colonial America, you can find examples of hemp being used to make fabric, rope, and sails, among other items, and this continued throughout most of the 18th and 19th centuries.

The use of industrial hemp continued, however, in 1906, Congress passed the Pure Food and Drug Act, which affected the availability of medicinal cannabis. This legislation aimed to revamp poison laws– ironically, the first state to label cannabis as a poison was California.

Cannabis Prohibition

In 1937, the Marihuana Tax Act was passed in the United States, which levied a tax on anyone who dealt commercially in cannabis, hemp, or marijuana, effectively making all three illegal. However, after the Philippines fell to Japanese forces in 1942, the U.S. Department of Agriculture and the U.S. Army urged farmers to grow hemp and even issued tax stamps for its cultivation to farmers. Without any change in the Marihuana Tax Act, over 400,000 acres of hemp were cultivated between 1942 and 1945. The last commercial hemp fields were planted in Wisconsin in 1957.

In the decades following World War II, cannabis, hemp, and marijuana remained illegal, though attempts were made to reconsider those policies. After a 1969 Supreme Court case rendered the Marihuana Tax Act unconstitutional, the Nixon Administration decided, based on racist and unscientific terms, to create the Controlled Substances Act and place cannabis in Schedule I — where it remains to this day.

In the decades since cannabis was criminalized in 1970 (and even before), millions of predominantly black and brown individuals have gone to jail. In fact, presidential hopeful Sen. Cory Booker (D-NJ) recently noted that there are more African Americans under criminal supervision in America today than there were slaves in 1850.

Cannabis Legalization & Reformation

To date, more than 30 states have enacted medical cannabis laws, and 11 now permit the adult-use of cannabis for those over 21. The cannabis industry is being called the new “green rush” and while it presents unlimited opportunity and potential, we must make sure that it is inclusive, diverse, and equitable.

So, while we look back at cannabis and its history in the United States on the Fourth of July, it is imperative that we also recognize the great injustices that have come along in the centuries since the country’s inception. Here in D.C., we’re proud to try and do our part by building broad coalitions, supporting diverse candidates, and lobbying on legislation that would right some of these wrongs, and really — isn’t that the most patriotic thing we can do?

Cannabis Victories: Small Business Committee Hearing and Appropriations Progress

by Michelle Rutter, NCIA’s Government Relations Manager

Last week was arguably the biggest week for cannabis reform in Washington, D.C. — ever.

As we noted last week, the House Committee on Small Business held a hearing entitled “Unlocked Potential? Small Businesses in the Cannabis Industry.” The hearing allowed members of the Committee to learn about the opportunities the legitimate cannabis industry presents for small businesses in states with legal cannabis, as well as entrepreneurs from traditionally underserved communities. The hearing also discussed the challenges also faced by “ancillary” or “indirect” cannabis businesses. 

The Chairwoman of NCIA’s Banking Access Committee, Dana Chaves, testified, as well as representatives from the Minority Cannabis Business Association (MCBA), the Veterans Cannabis Coalition (VCC), and The Heritage Foundation. In the testimony NCIA submitted for the record, we wrote, “[SBA] programs were specifically designed to stimulate economic activity and create jobs through small-business enterprises. Offering funding to the emerging regulated cannabis industry, which is mostly comprised of small businesses, would perfectly align with SBA’s primary objective to maintain and strengthen the Nation’s economy.” You can read NCIA’s full testimony here.

In addition to the hearing, there was a resounding, victorious Floor vote that put every single member of the House of Representatives on the record when it comes to cannabis. 

Known as the Blumenauer-McClintock-Norton amendment, this provision that was added to the Commerce, Justice, Science, and Related Agencies (CJS) Appropriations Act of 2020, passed by a vote of 267-165 and would prevent any federal funds from being used to target state-legal cannabis programs. The vote was decisive: it had support from all but eight Democrats, and picked up 41 ‘Ayes’ from Republicans. 

It is unclear whether or not the amendment will be included in Senate appropriations language, however, it will be an uphill battle. But, having the House of Representatives clearly say that adult-use cannabis programs, businesses, and consumers shouldn’t fear the Department of Justice kicking their doors down cannot be underestimated. 

So, thank you to the nearly 2,000 NCIA members who made this victory possible by investing in our unparalleled lobbying team in Washington, D.C. Legislation like this doesn’t pass by itself — it’s a direct result of the forward-thinking members who support our work in D.C. We look forward to celebrating many more victories with you! 

 

Member Blog: Legal Cannabis in Illinois – Expanded Possibilities For All

Illinois Cannabis shutterstock_1229211757

by Payal Shah, Cannabis Insight Collective

Today, Governor Jim Pritzker of Illinois signed the historic House Bill 1438, The Cannabis Regulation and Tax Act, into law, ending prohibition for recreational cannabis usage across the state, and making it the 11th state where cannabis is legal. I, along with so many others in Illinois, and around the United States, am just as excited as the Governor.

The state of Illinois just made history, legalizing adult-use cannabis with the most equity-centric approach in the nation. This will have a transformational impact on our state, creating opportunity in the communities that need it most and giving so many a second chance.” – Governor Pritzker, IL

This is a game-changer for the state of Illinois and its constituents. Public health, education, and tourism are just a few of the areas that are expected to emerge victoriously by being some of the beneficiaries of the $170 million dollars in expected tax revenue in early years.

But to me, what’s even more extraordinary is the fact that within IL’s legalization law is a visionary plan that will serve as inspiration to advance the nation’s social equity movement in this industry. 

With the end of cannabis prohibition, we see the beginning of the end to the “war on drugs” as we know it, one that shrouded lower-income and traditionally Latinx and African-American communities in an unjust and unfair light.

The ACLU states that people in the United States use and sell marijuana at roughly the same rate regardless of their race, yet a black person is almost four times more likely than a white person to be arrested for marijuana possession nationwide. In addition, roughly 13,000 people were deported or separated from their communities and families in 2013 alone for drug-related offenses.

Even the word marijuana itself can be considered negative and racist, based on a longstanding theory that narcotics agents in the 1930s chose a word of Mexican-Spanish origin over the more scientific word cannabis when crafting drug laws, making it sound more sinister and associated with a certain community. 

The equitable measures put into place in Illinois’ cannabis legalization law are unprecedented when it comes to making sure the end of cannabis prohibition will result in brighter days for the masses, not just a select few.  

A FAIR SHOT FOR ALL

New processing and cultivation licenses will be issued in mid-2020, with growers from communities negatively impacted the most by cannabis prohibition getting priority within the application process.

A SECOND CHANCE

Up to 770,000 people in Illinois qualify to have their marijuana convictions expunged from their criminal record, healing past wounds and providing access to new opportunities that weren’t available in the past because of past marijuana laws.

OPPORTUNITY FOR GROWTH

One quarter of cannabis taxes collected will fund a grant program that will invest in minority communities impacted most negatively by cannabis prohibition, driving cannabis business opportunities, by offering assistance and mentorship.

Even 2020 candidate Senator Kirsten Gillibrand shared her comprehensive plan to legalize marijuana on a Federal level immediately if she becomes president. In that plan, social equity is also the primary focus on the path to legalization.

The unfair enforcement of our current marijuana laws is a continuation of the institutional racism that has defined our criminal justice system for decades… We’re talking about entire lives, families, and communities being derailed: felony convictions make it much harder to get and keep jobs, access financial loans, exercise the right to vote, travel abroad, and receive social and housing benefits.” – Senator Kirsten Gillibrand

And just recently, Chicago-based Cresco Labs launched its Social Equity & Educational Department (SEED), an initiative aimed at promoting inclusion, equality and community engagement, through community outreach, educational support and incubators for veteran, minority and women-owned businesses. 

Our SEED initiative is designed to ensure that all members of our society have the skills, knowledge and opportunity to work in and own businesses in this industry….the SEED initiative consists of impactful programs and actionable solutions-based approaches that we believe will help make the cannabis industry a highly inclusive force for job creation.” – Charlie Bachtell, CEO, Cresco Lab

I also believe in a fair and equitable cannabis industry that unites as one to fix the damage done within certain communities as a direct result of cannabis prohibition. The National Cannabis Industry Association, along with the Minority Cannabis Business Association, are helping to shape laws and create a roadmap for local governments to address social equity issues right from the start of legalization.

“It is fitting that the Land of Lincoln is moving forward with such extensive measures to reverse the damage done to people of color and low-income communities by the government’s senseless war on cannabis consumers. We cannot continue to pursue legalization without considering restorative justice, and Illinois is definitely starting on the right foot in this regard,” said Aaron Smith, executive director of the National Cannabis Industry Association (NCIA).

And as further fuel to ignite the social equity movement, with the end of prohibition in sight, we’re also seeing exponential growth in all sectors of cannabis business. And with that growth comes a highly qualified talent boom in cannabis, with executives from all industries making the move to join and imagine an exciting new space together, from all perspectives. One exciting space that cannabis businesses can look to Corporate America for inspiration is within Corporate Social Responsibility programs.

Corporate Social Responsibility programs, or CSR, is a way for companies to conduct their business in a manner that is ethical, while taking their social, economic and environmental impact, along with the consideration of human rights, into account. It can be a win-win situation for all parties involved – through CSR programs, businesses can benefit society while boosting their own brands. Most have probably heard of Tom’s Shoes, and their popular “One for One” CSR program, which donates a pair of shoes for every pair bought. General Electrics donated over $38 million to community and education programs in 2016. Disney has a “VoluntEARs” program, which allows all of their employees to use a portion of their hours towards volunteer efforts.

With so many new brands coming into the market following legalization, it’s important that they find a way to stand apart and above the competition, while delivering a relevant brand experience. In order to do that successfully, brands need to stand for something, something that matters to people. And what we’re hearing from legislators and constituents alike is that social equity in the cannabis industry matters a lot. It’s a space for us, as responsible cannabis business owners paving a path forward, to come together and share not only the secrets of their success, but also to share the gains with the entire cannabis community, in order to lift everyone up – to right the wrongs of the failed war on drugs.

The possibilities are limitless, just like the new frontier of cannabis. I look forward to seeing how we all grow together.


Payal Shah is founder and CEO of the Cannabis Insight Collective. She’s spent the last two decades in strategic planning, working in leadership roles within global advertising agencies, on blue-chip clients including Proctor & Gamble, Microsoft, Walmart, Kelloggs, and Porsche.

Her experience is focused on understanding how cultural paradigm shifts and trends impact and influence people, their behaviors and brand choices. Her knowledge is grounded in creating and cultivating online panels, or Collectives, of all sizes and shapes, to address a variety of challenges for various clients. This background, along with a compassion and conviction for the cannabis industry, inspire her to be an advocate to drive the cannabis industry forward. 

Cannabis Insight Collective is a living, breathing online community of people across the United States, brought together by their connection to the cannabis industry. We exist to uncover cultural, category and consumer trends and insights within the category by tapping into our proprietary Collective, and working with people directly to answer questions that brands are struggling to answer.  

At Cannabis Insight Collective, we are committed to supporting social equity in the cannabis market, and treating everyone fairly and respectively, through a number of Corporate Social Responsibility business initiatives:

  • The Cannabis Insight Collective panel will be representative of the entire United States population to ensure a representative voice is heard.
  • A percentage of CIC’s revenue will be donated to the advancement and mentorship of minority-owned cannabis businesses.
  • CIC will continue to advocate to establish new and existing laws that make sure the cannabis industry is fair and equitable.

 

 

We Made History: U.S. House votes to protect cannabis businesses!

Today, the House of Representatives voted in favor of an amendment to the Commerce, Justice, State (CJS) Appropriations Bill that prevents federal interference in state cannabis programs. The NCIA team is beyond excited that we’ve made this incredible progress to protect all state-legal cannabis businesses, including adult-use operators.

This was an historic vote, and is the farthest reaching action Congress has ever taken to reform outdated federal marijuana prohibition policies.

Protections for state medical cannabis programs have been included in the federal budget since 2014. The amendment passed today — introduced by Rep. Earl Blumenauer (D-OR), Rep. Tom McClintock (R-CA), and Del. Eleanor Holmes Norton (D-DC) — would, for the first time, extend those protections to states and territories where cannabis is legal for adults. An additional amendment offered by Rep. Blumenauer that was also attached to the bill would also prevent federal interference in tribal cannabis laws.

I’d be remiss if I didn’t take this opportunity to express gratitude for the nearly 2,000 NCIA members who made this victory possible by investing in our unparalleled lobbying team in Washington, D.C. Legislation like this doesn’t pass by itself — it’s a direct result of the forward-thinking members who support our work in D.C..

If your business is not yet a member of NCIA, please join today in order to ensure we have the resources we need to build upon this momentum and finally enact federal legislation that will allow your business and our industry reach its full potential.   

NCIA is the only organization with three full-time lobbyists in Washington, D.C. in addition to a well-connected professional advocacy firm. Michael, Michelle, and Maddy have been working the halls of Congress, fighting for state-legal cannabis businesses since long before it was vogue. We could not be more proud of our lobbying team, and we encourage you to follow their progress on these appropriations bills, as well as their important work on the SAFE Banking Act which is also expected to receive a vote in the weeks ahead.

Please also take a few minutes to call your Senators today and ask them to support legislation that would protect state cannabis laws. There is no time to waste because the Senate will be considering appropriations bills with similar marijuana provisions over the Summer. And keep your eye on more news from NCIA’s government relations team – the only full-time government relations team fighting for the legal cannabis industry in Washington.

Action Alert: YES on Blumenauer-Norton-McClintock Amendment #17

This week, the House of Representatives will vote on protecting adult-use cannabis businesses, consumers, and state programs from the federal government and we need your help now.

The Blumenauer-Norton-McClintock amendment states that no funds from the Department of Justice may be used to prevent any adult-use cannabis states from implementing their own laws that authorize the use, distribution, possession, or cultivation of cannabis.

Today, we need you to call your Representative and tell them to VOTE YES on the Blumenauer-Norton-McClintock amendment (#17) to the Commerce, Science, and Justice appropriations bill.

Find your Representative by clicking here and check our Congressional Scorecard to see where your Representative stands on our industry’s issues!

Contact Your Representative Now!

Here are some talking points to use on your call:

    • Since 2014, members of Congress have passed annual spending bills that have included a provision protecting medical cannabis businesses, patients, and programs from undue prosecution by the Department of Justice.
    • The bipartisan Blumenauer-McClintock amendment simply removes the word “medical” from that provision in order to protect those 11 states that have legalized adult-use cannabis for adults over the age of 21.
    • We urge you to VOTE YES on Amendment #17 to the Commerce, Science, and Justice appropriations bill, which is the bipartisan Blumenauer-McClintock amendment.
    • Today, more than one in five Americans reside in a jurisdiction where the adult use of cannabis is legal under state law.

Our industry supports hundreds of thousands of jobs, tens of millions in tax revenue, and billions in economic activity – so please, call and help us protect it.

 

Member Blog: The Differences Between Strain Specific Terpenes, Terpene Enhanced Flavors, and E-Juice Flavoring

by Nicole Flanigan, Peak Supply Co

As the nation’s largest wholesale terpene provider, we spend a lot of time getting to know the needs and wants of our customers. One of the biggest questions our new clients have refers to the flavor profiles of our terpenes. More specifically, people are wondering why our strain-specific terpenes (like Banana Sherbet, Cherry Pie, and Cookies & Cream) don’t taste like the real sugary sweet confections that go by the same name.

There is a slight misconception when it comes to terpenes. Many people expect terpenes to work like e-juice in a vaporizer to make whatever you’re smoking taste like something else. While it isn’t uncommon for vape juice to taste like Skittles, cinnamon rolls, mojitos, and orange juice, terpenes don’t. There are no additional additives like sugar or artificial flavors in the terpenes that’ll make a hash pen or oil taste just like fruit, candy, and cake. It’s best to only use what nature gives us!

Here’s the difference between isolated terpenes and wholesale versus e-juice for vaporizers, as well as a quick rundown on flavor enhanced terpenes to help you or your customer make a more educated purchase:

What are terpenes?

Terpenes are organic compounds found in all plants that are responsible for giving the plant – from blueberry bushes to pine trees – its distinct smell. The unique smell helps plants existing in the wild to attract pollinators and ward off predators. Terpenes are the primary source of the resin and trichome production in cannabis, and they are created in the same glands that produce CBD and THC. That being said, marijuana can create its own combinations of terpenes. No two plants smell exactly the same.

Terpenes are also responsible for several medical benefits and adult uses. When they’re combined with some of the different cannabinoids found in cannabis, they can create what is known as the entourage effect. The entourage effect is what gives strains of cannabis a variety of different effects since the flavor profiles can come about from an almost infinite number of terpene combinations.

In layman’s terms, terpenes are so useful because they can be blended seamlessly with each other. This gives enthusiasts more control over what they taste and feel when they vape. Cannabis contains over 100 different terpenes that offer unique effects.

Liquid terpene products and extracts typically contain a combination of terpenes found in cannabis. Some products will have more of an indica profile (like Blackberry Kush) while others will have more of a Sativa (Clementine) or Hybrid (Banana Kush) profile. This helps to encourage the specific physical effects you’ve come to expect from cannabis.

What is e-juice?

The e-juice, vape juice, and e-liquids can be used in vapes and electronic cigarettes to create actual vapor. Most of the time, e-juice contains nicotine though many flavored e-juices don’t contain any. E-juices come in a ton of different flavors that cater to just about everyone, from people with intense tobacco cravings to people with a sweet tooth. E-juice is made with propylene glycol or vegetable glycerin, flavoring (often with terpenes, but usually artificial) and water. Vape juices that are made with propylene glycol are more likely to irritate your throat while you smoke it. On the other hand, e-juices made with vegetable glycerin are more likely to add a thick layer of sweetness to the vapor.

This is where a lot of the misconception kicks in. Since some vape juices made with vegetable glycerin are sugary sweet and taste like candy, many people assume that terpenes by themselves are responsible for the flavoring. By adding terpenes to e-juice, you can achieve a variety of different and new flavors. However, the terpenes won’t add anything artificial.

Natural terpenes vs. artificial flavors

E-juice, hash oil and CBD isolate can all benefit from adding terpenes and flavonoids to the mix. While marijuana has one of the most extensive ranges of flavor profiles in the plant kingdom, it will never naturally taste like cake, blue raspberry, or piña colada. Those are artificial flavors that have no natural terpene representation in the plant kingdom. Essentially, that just means that if you want blue raspberry vape cartridges, you’ll need to get artificial flavoring and avoid terpenes. Terpenes won’t be able to come close in taste and umami to that artificial flavor that doesn’t exist anywhere naturally.

Natural terpenes are becoming increasingly popular to add to cartridges, oils, and vaporizers. These are natural flavors that mimic the natural terpene profiles of cannabis strains. Natural terpenes are an excellent option if you’re trying to give your products an extra burst of flavor. For example, a processor wants to make the perfect Blue Dream cartridge, though the cannabis used for the extraction didn’t taste as vibrantly blueberry as the processor hoped. To achieve that ideal Blue Dream flavor profile, they could add a close match of terpenes found in the Blue Dream strain profile. The terpenes can add the sweet, summer-berry flavor the cannabis extract may be missing to the mix. That will allow the processor to create a tastier product with no side effects.

Overall, you should choose terpenes if you want to mimic natural flavors found in cannabis. You should select artificial flavors if you want something to taste like something unnatural or extra sweet.

What are flavor-enhanced terpenes?

Flavor-enhanced terpenes are the best of both worlds. While e-juice is more often artificially flavored, it often tastes better than terpenes alone. Flavor enhanced terpenes are terpenes extracted from cannabis with extra flavoring added in. Flavor enhanced terpenes offer the natural health benefits of natural terpenes but with the added benefit of tasting delicious. Our line of flavor enhanced terpenes includes fruit flavors like Ripe Strawberry and Berries and Cream as well as non-fruit flavors like breakfast cereals and pastries.

Do strain-specific terpene flavors really taste like the strain they’re based on?

Flavor is subjective and depends on things like classic tastes, aromatic chemicals, and the taster’s mood and physiology. Strain-specific terpenes are scientifically formulated to mimic the real strain’s natural terpene ratios.

To create strain specific terpene extracts, we primarily identify the terpene ratios commonly found in the strains and reverse engineer the process while removing the cannabinoids from the mix. It’s best to start by testing real cannabis at a certified lab. Then recreate that flower’s terpene profile in the lab and test the formula against real cannabis flowers. If the terpene profile doesn’t make the cut, it doesn’t get sold.

Our strain-specific terpenes are designed to match the terpene profiles of the flowers we extract these essential oils from. Just because they’re named Birthday Cake and Biscotti doesn’t mean they’ll taste like the real thing. However, they do taste like the real cannabis strain since their terpene profiles match.

Terpenes Vs. E-Juice: TL;DR

If you’re just here for a quick answer, here’s the difference between natural terpenes and vape juice.

  • All plants naturally produce terpenes.
  • E-juice or vape juice is often artificially flavored
  • Artificial flavors are not terpenes. They don’t exist anywhere naturally and are created synthetically.
  • Strain-specific terpenes are reverse engineered to mimic natural terpene profiles of cannabis strains
  • Strain-specific terpenes contain no artificial flavorings
  • Strain-specific terpenes will taste like the cannabis strain, not the food or fruit it’s named after. For example, Chocolate Cookies tastes like hash, spice, and coffee, just like the cannabis strain. It doesn’t taste sugary sweet and chocolatey.
  • If you want the best of both worlds, try flavor enhanced terpenes to get the benefit of terpenes and the flavor of e-juice.

Everyone has different taste and smell preferences, but now you should be able to find the best fit when looking for that perfect terpene blend.


Nicole Flanigan is one of the newest additions to the Peak Supply Co family. Her knowledge base on terpenes and cannabinoids has helped throughout the educational process. Nicole is a Colorado-based content marketing professional who has dedicated her life to cannabis awareness, advocation, and education. When she’s not writing or developing something groundbreaking for her clients, she enjoys growing cannabis organically and hiking all over Colorado with her two huskies. Peak Supply Co provides the first true all in one solution providing terpenes, vape cartridges, package design and production, helping clients progress from starting creative to finished product. 

 

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