Guest Post: Waiver Program Could Clear Path for State Legalization
(AS WITH ALL GUEST POSTS ON NCIA’S WEBSITE, THIS POST SOLELY REPRESENTS THE VIEWS AND OPINIONS OF ITS AUTHOR AND DOES NOT REPRESENT AN NCIA ENDORSEMENT OR OFFICIAL POSITION. ~ EDS.)
Congress is considering a potential waiver program where states will be given an exemption to federal prohibition of cannabis.
On April 17 and 18, NYU hosted the Cannabis Science & Policy Summit where a panel discussion took place titled “Federalism & Cannabis Policy: What Can & Should Washington Do?” The panel consisted of experts in law and drug policy, including Congressman Earl Blumenauer (D-OR) and Sarah Trumble, senior policy counsel at Third Way, a public policy think tank based in Washington, D.C. The panel discussion delved into the restrictions of the DEA’s power to reschedule cannabis by Congress and appropriate policy alternatives to clearing the path for state-by-state cannabis legalization.
According to Cody Stiffler, vice president of Government Affairs at BioTrackTHC, who was also present at the panel discussion, Congress has placed so many restrictions on the ability and powers of the DEA, that they can only reschedule cannabis to a Schedule II status. He believes there is almost no possible way that the DEA can de-schedule cannabis. The panel discussed Congress’s consideration of a waiver program for states with legalized cannabis in some form or another. “They [Congress] plan to give the U.S. Attorney General powers to offer waivers to state governments, exempting that state from federal law regarding cannabis, allowing banks and other institutions to take part in the industry without fear of federal backlash under the Controlled Substances Act,” says Stiffler. The waivers would have a duration of a number of years and a reporting and review process would follow the expiration of each waiver. “If the Attorney General decides that states are following the directives of the Cole Memo, then they will be able to continue, but if the data collected proves otherwise, those waivers would then be suspended or revoked,” adds Stiffler. It is important to note that the bill gives states the opportunity to correct any failures before those waivers are revoked.
According to Sarah Trumble, public opinion favors a policy move towards allowing states with cannabis legislation to operate freely. A poll conducted by Third Way found that 67% of voters would support Congress passing a bill giving states freedom from federal intervention with respect to cannabis policy as long as there is a robust regulatory framework in place. In October of last year, Congresswoman Suzan DelBene (D-WA) introduced the bill, H.R. 3746, The State Marihuana [sic] And Regulatory Tolerance (SMART) Enforcement Act. The bill outlines the waiver plan and would exempt states from the prohibition of cannabis as a result of The Controlled Substances Act. It also has measures in place to help prevent diversion of cannabis into the black market, protecting consumer safety and public health, eliminating criminal enterprise involvement and more.
According to Trumble, the SMART Enforcement Act would resolve many of the conflicts between federal law and state legalization measures. “It is the bridge that gets us from the broken system we have now to a future date when public opinion and Members’ positions may have shifted, while in the meantime fixing the problems people are experiencing on the ground,” says Trumble. She believes the bill provides for the protection of consumer safety through logical regulatory systems while eliminating federal prohibition of cannabis. “Every three years, a state will have to re-apply for the waiver and submit data showing that their regulations are working to keep Americans safe.” This would allow states to have the space they need to implement a sound regulatory framework.
One can speculate on a broad range of possible effects this bill could have. “It would allow banks to open accounts for and offer services to legal cannabis businesses so they no longer have to operate on an all-cash basis,” adds Trumble. Perhaps the most significant effect this bill could have on the cannabis industry is knocking down the burden of the 280E tax code on cannabis businesses primarily because it would exempt states from The Controlled Substances Act. “It would protect businesses owners and employees—as well as customers and patients—from federal prosecution and arbitrary DEA crackdowns, now or in the future,” says Trumble. This bill has the potential to be a panacea for so many ailments facing the cannabis industry. Participants in the cannabis marketplace should let their representatives know that they support this bill and show up at the polls in November to elect representatives that support this piece of legislation.
Aaron G. Biros is the editor-in-chief of CannabisIndustryjournal.com, an online trade journal focused on regulatory compliance, quality and safety in the cannabis industry. Hejoined Innovative Publishing, LLC full-time after graduating from Tulane University. Graduating with a B.A. in Environmental Studies, his coursework involved environmental sustainability, conservation policy, design thinking in collaboration, social innovation & entrepreneurship, food production & health, and environmental & health risk assessments. He has two years of experience working on staff as an associate editor for FoodSafetyTech.com, writing a series of articles focused on the intersection of food safety and environmental sustainability. Aaron is now the editor and publisher of CannabisIndustryJournal.com, a B2B digital trade publication that seeks to educate the global cannabis industry on everything seed-to-sale in both recreational and medical markets. CannabisIndustryJournal.com covers news, business trends, technology, regulatory compliance and other important areas, aiding in the advancement of a well-informed and safe market. Cannabis Industry Journal became a member of NCIA in May 2016.
NEW: NCIA Launches Interactive Map For State Cannabis Policies
Thanks to a collaboration with NCIA members CannaRegs and New Frontier, we are pleased to announce a new resource now available on NCIA’s website to help you stay up-to-date with each state’s cannabis regulations and market size estimates. NCIA’s new State-by-State Marijuana Policies Map provides a valuable overview of every state’s approach to cannabis and cannabis markets.
Users can explore valuable information in this new interactive map by simply clicking on each state to see detailed summaries of the state’s cannabis market and regulations. This information is compiled and updated regularly by CannaRegs and New Frontier as changes are made to regulations and more data becomes available.
The map provides information including medical and adult-use laws, as well as the number of cannabis cultivations, dispensaries, manufacturers, and testing labs allowed and issued in the state, fee structures for applications and licenses, residency requirements, and qualifying medical conditions for patients. The map also includes current medical and adult-use sales estimates, as well as projected sales for the year 2020. This information is provided for educational purposes only and is not legal advice or substitute for legal counsel.
CannaRegs is a web-based subscription service for cannabis professionals that provides enhanced access to all cannabis-related rules and regulations from state, county, municipal, and federal sources, and aggregates these rules and regulations in an intuitive, easy-to-use database. Click here to request a demo of CannaRegs’ services and save 15% if you’re an NCIA member.
New Frontier is a data collection and industry-reporting firm in the cannabis industry, providing data, analytics, and customized actionable intelligence to investors, operators, and legislators in this new blooming sector.
Hopefully by now you know the importance of building your brand’s presence on social media. However, there may be days when you ask yourself, “WTF am I doing?”
Oftentimes social can seem overwhelming and confusing. For example, you may log onto Pinterest to try to figure it out and three hours later all you’ve found is an amazing recipe for brownies (marijuana optional).
Most cannabis business owners have got the “weed porn” portion of social down – meaning they know how to post pictures of weed on Instagram and Facebook but don’t worry about much else.
Well, I’m here to tell you that there is a lot more to social than weed porn.
And… weed porn is one of the big red flags for Facebook and Instagram and is a great way to get your account shut down.
If you are ignoring a larger content marketing strategy and only posting content that is full of hype and sales, you are not only likely to get your account shut down, but you are also very likely to turn off your prospective customers.
Thanks in part to an over-saturation of weed porn and of course constantly changing algorithms (Facebook, Instagram… who’s next?), there is a need for a robust strategy that can evolve.
Like most marketing strategies, this can seem like a ton of work and may not have your full attention.
So on that note, here are four easy ways to maximize your social presence and make social media marketing work for you (beyond weed porn and pot brownies).
Choose your platform(s).
You don’t need to be an expert at every channel. Pick the two or three channels where you know your audience hangs out and master them.
Facebook, Instagram, and Twitter are the big three that you should know how to use strategically. There are other cannabis social channels such as MassRoots but they don’t have the impact and reach that the big three have, at least not yet.
Make sure your imagery matches your brand’s promise and is consistent.
From your logo to your profile name and picture, everything across your social channels should be instantly recognizable and represent your brand’s promise. Make sure you are following your branding guidelines and using the correct fonts and colors to design your pages and establish your brand.
Create engagement with valuable and shareable content.
It’s easy to fall into the trap of posting things that you and your employees like without really knowing if your audience feels the same way. Make sure you are creating content that your audience is excited about and eager to share. One of the easiest ways to determine what content your audience likes is by tracking the likes, comments, and shares on your posts and by watching what other successful brands within your niche are doing.
Engage with your followers by taking part in the discussion.
One of the quickest ways to create your tribe is to socialize your content. The easiest way to do this is to reach out to industry influencers and mention their names in your posts. Once you do that you can start to create a relationship with the key players in the industry and inspire them to connect with you and share your content.
Again, the content needs to be fresh, relevant and exciting.
Weed porn alone won’t cut it.
As a successful entrepreneur, longtime marijuana advocate and medical grower, Alexa Divett understands the unique needs of the cannabis industry. Alexa is the founder of Alexa Divett LLC, a business coaching and consulting company helping cannabis business owners achieve success through the implementation of sound business practices and time-tested marketing techniques.
Alexa’s achievements include co-founding Maya Media Collective, a Portland, Oregon-based creative firm that specializes in the cannabis industry, and writing the “Marijuana Millions” Ebook series, which The Weedblog called the best marijuana-branding book to date. Additionally, Alexa speaks about marketing and branding cannabis businesses at local and national events. Alexa’s products and presentations on starting and running successful cannabis businesses have made her an in-demand and innovative expert in the cannabis business world.
Member Spotlight: BDS Analytics
As the cannabis industry expands and continues its upward growth, data has become a valuable tool to help business owners make important decisions about running their businesses. For the month of June, we speak with Roy Bingham, co-founder of BDS Analytics, which specializes in collecting, processing, and presenting point-of-sale market share data for the cannabis industry. NCIA is launching a partnership with BDS Analytics at this year’s Cannabis Business Summit and Expo, offering free interactive access to a selection of BDS Analytics data as a new benefit to our members. Read on to learn more about Roy and the BDS team.
Tell me a bit about you and why you founded BDS Analytics?
Roy Bingham, co-founder of BDS Analytics
I grew up in the U.K. and after nine years in banking and corporate treasury in London, I moved to the U.S.A. in 1993 to go to Harvard Business School. I loved it here and decided to stay, working initially as a consultant at McKinsey in Boston and then building a business called Health Business Partners (HBP) in Rhode Island. HBP focused on the natural product industry – essentially anything that you could buy in Whole Foods Market. One of the things that we did early on was invest in or create information businesses including Nutrition Business Journal, The NBJ Summit, and a data analytics company called SPINS. SPINS worked with data from retailers such as Whole Foods and hundreds of independent health food stores and small chains to aggregate data about products and categories in the health food channel. It was very successful and is the dominant point-of-sale (POS) data analytics company in that channel. Later in my career, I co-founded a nutraceuticals company and then ran a division of RenewLife, which is the largest natural digestive care company in the U.S. We used SPINS data extensively to help us with three main things:
1. Product development – identifying market opportunities by assessing category size, growth characteristics, competition, and product attributes
2. Marketing – assessing the effectiveness of campaigns using “off the shelf” sales data and then modifying and launching more effective campaigns
3. Sales – we expanded from independent health food stores to Whole Foods and then to mainstream such as CVS, Walgreens, Costco, Wal-Mart, etc. Our most convincing sales tools were SPINS’ charts showing our market leadership or strong growth characteristics in existing channels and convincing new retailers that they should introduce our products into their stores
My long-time friends and colleagues founded CanopyBoulder in 2014. They called me very persuasively in early 2015 to encourage me to create SPINS for the cannabis industry. Naturally I thought they were inviting me to take a crazy risk – at least until I understood how exciting the opportunity was. What they explained was that this industry was desperate for data to guide decision-making, and the data that is in every other industry just did not exist in cannabis.
Liz Stahura, co-founder of BDS Analytics
With help from CanopyBoulder, I was introduced to Liz Stahura, who became my co-founder. Liz had ten years of experience building a POS data analytics company for the biking and outdoor industry called Leisure Trends. It was a similar business to SPINS and had recently been acquired by NPD, the number-3 player in the industry after IRI and Nielsen. Together we set to work to recruit the team, build the technology platform, build partnerships with dispensaries, and more recently make the data available to our brand/grower/producer clients. We also raised $1.5 million from investors in the summer of 2015.
How does the data analytics you provide benefit cannabis business owners?
Our software and service helps two kinds of clients in several ways.
A. Dispensaries are our partners and clients. They provide anonymized data that we aggregate and organize in our database of more than 20 million transactions. We clean up all that data and match every transaction to a product and every product to categories and attributes. Then the dispensaries can access our portal 24/7/365. They are able to see how their store sales are progressing by category, sub-category, brand, and individual item. This alone provides great insight and is provided for chains at the individual store and aggregate chain levels. But then… they can compare their own sales to the averages for their states – all at the category, sub-category, brand, and item levels. This quickly and easily reveals actionable insights such as “Which categories and products am I not carrying that would sell well?” or “Which do I feature too heavily?” The result is increased sales and profitability, as well as customer loyalty and fewer customer/patients leaving without the item that they came to find.
B. Brands, manufacturers, and growers use our software in the same ways that I described using data analytics when I was at ReNewLife:
a. Sales – Third-party data to validate the importance of their brands and items and convince customers to carry them in their dispensaries
b. Marketing – assessing the effectiveness of campaigns using “off the shelf” sales data and then modifying and launching more effective campaigns or pricing strategies
c. Product development – identifying market opportunities by assessing category size, growth characteristics, competition, and product attributes
As a business owner, you’re very involved in your community and in causes that you care about. Can you tell us more about what matters most to you, and how your business participates in pushing for progress?
The BDS Analytics team
First, I believe in education, information, and freedom of choice. I think everyone should have the opportunity to study and learn by experience and I think most people make wise decisions for themselves and their families if they are empowered in this way. I think the “war on drugs” has been the worst policy disaster of the last 100 years. It has destroyed countless lives and enriched those that prey on others. It should be over now.
As a business, our mission is to drive the cannabis sector to thrive with well-informed decisions based on factual data. Our success is the success of our clients. So we believe in helping to create the right conditions for our clients and the industry overall to succeed. This includes wise regulations, positive and well-informed media attention, free markets, smart decision-making, and availability of human and financial capital.
Why did you join NCIA?
The first check that we wrote after capitalizing our company was for membership in NCIA. It was a “no-brainer.” It is vital to the success of our industry that it has a clear, united, and loud voice that ensures regulatory obstacles are removed. NCIA has also provided a very supportive community that has enabled us to get up the learning curve and make deep relationships. NCIA also provides other great benefits and we are thrilled that one of those starting very soon is access for all members to our GreenEdge data!
Get your first look and a demo of this new NCIA member benefit from BDS Analytics at the 3rd Annual Cannabis Business Summit and Expo, June 20-22! Register today!
I began my career as a professional chef at high-end, Michelin Star restaurants in San Francisco. I worked with phenomenal chefs, and I always had the goal of being a James Beard award-winning chef. Cooking was my passion, and I learned from the best about sourcing ingredients and creativity in the kitchen.
When I was cooking, the Bay Area was home to a new sustainability movement that focused on local ingredients. Pioneering chefs like food activist Alice Waters led a sustainable revolution that spread across the country. Local, seasonal cooking has replaced elaborate neo-classical cuisine. Diners want to know where their ingredients are from, and why the chef has chosen a specific preparation. Our cooking at home is more aware too.
I was thinking about ingredients and recipes a decade ago, when I got involved with cannabis edible products. A friend approached me about making edibles when his father, a cannabis patient living with HIV/AIDS, could no longer smoke. Pharmaceutical medications prescribed to patients for wasting syndrome and other complications from HIV/AIDS caused nausea, and cannabis proved an effective counterbalance.
I started getting positive feedback on my edibles’ effectiveness for pain, nausea, sleep problems, stress, depression, and end-of-life transitions for those in hospice. I remember a call from a patient who was on the edge of tears because cannabis allowed them to enjoy breakfast. I saw what a beautiful thing it is to ease people’s suffering, and I was all in from that point on.
At a recent event, I spoke with a woman about her catering services, a service that pairs fine dining with smoked flower. When I asked about using cannabis as an ingredient, psychoactive or not, she said it was “too dangerous.”
I realized that even though Colorado has had adult-use cannabis for more than two years, and medical cannabis for longer, there’s still so much fear about edibles. Media attention on a few bad actors is keeping consumers away from a cannabis product with incredible potential for good.
Edibles producers are waging a constant battle against misinformation. Legislators react to perceived public concern by over-regulating our sector. Regulation is relentless: new measures take shape before we have time to measure existing rules’ effectiveness. Edibles companies struggle for survival as new, hastily crafted, fear-based regulations are enacted.
Over-regulation has become counter-productive. Our concerns about restrictive standards for marking, stamping, and packaging limit our ability to be creative with ingredients and presentation. As a chef, it’s disheartening.
Mountain Medicine recently became the first edibles company to co-brand with a mainstream (non-cannabis) food manufacturer. On my constant hunt for the best local ingredients, I discovered Highland Honey, a beautiful, locally sourced raw honey from Boulder. I was lucky that the owner aligns with my values and beliefs about local ingredients and cannabis as medicine. Sadly, regulatory hurdles, liability, and image concerns keep exciting partnerships out of reach for edibles producers and the industry as a whole.
It’s frustrating to create a great product and make it bend to regulations that prioritize fear over food quality. As legislators attempt to protect consumers, edibles are treated more like poison than food, and patients lose access to quality products.
As I expand my business, I’m often advised not to mention edibles. Cannabis is normalizing, but there’s still a huge stigma attached to edibles. Irrational fear keeps consumers away from the healthiest, most controlled way to consume cannabis. I’ve seen first-hand the incredible impact edibles can have on quality of life, but I worry that patients won’t have the chance to experience it themselves.
Activists have endured a difficult, decades-long battle for any access to cannabis. The fight we are facing now for access to edibles will be just as difficult.
As cannabis enters the mainstream, our entire society is beginning to understand the many positive effects of cannabis. We fought for decades to bring the truth about this amazing plant to light, but current perceptions about edibles make it clear that it’s not over yet. Our challenge now is to shape the conversation about these products and the relief they bring. The freedom to consume cannabis is critical, but the fight for access to quality products will shape this industry’s future for many decades to come.
Jaime Lewis has more than nine years of experience managing the production of medical marijuana-infused products (MIP), as well as all facets of managing and operating a medical and recreational marijuana dispensary. A California Culinary Academy graduate, she’s worked in many highly acclaimed kitchens, including serving as the executive chef of a Michelin-rated three-star restaurant in San Francisco. She began creating medical marijuana edibles for HIV/AIDS patients in California in 2006 as part of a Compassion Co-op.
In 2009, Jaime moved to Colorado and founded Mountain Medicine, a medical marijuana-infused product manufacturer. Mountain Medicine supplies high-quality medical and recreational marijuana edibles and products to a number of dispensaries throughout the state. As the founder and executive chef, Jaime designed the commercial kitchen and supervised its start-to-finish construction. She developed recipes leading to a variety of product lines to meet patients’ individual needs and developed product packaging that favors discreet design on behalf of patient confidentiality and safety.
Jaime is responsible for strategic planning and business development, policy development and governmental affairs, marketing and serves as the community liaison to demonstrate good corporate citizenship.
Jaime is an active member of the cannabis community. She is one of the founders and serves as the Chair of the Cannabis Business Alliance, as well as chairing the board of the National Cannabis Industry Association. Jaime takes great pride in changing the conversation around safe and responsible cannabis use both in the state of Colorado and on the national level.
Cannabis Business Summit Inclusion Scholarships – Give or Apply!
NCIA’s Minority Business Council is now accepting applications for scholarships to attend NCIA’s Cannabis Business Summit!
Supported by contributions from NCIA and its members, with the objective of encouraging an industry more inclusive of people from all backgrounds, the 2016 Cannabis Business Summit has made a number of scholarships available for people from under-represented groups seeking to take advantage of the Summit’s education and networking opportunities.
NCIA – including members, leaders, and staff – believes that diversity and inclusion are essential to the fulfillment of our mission. We value inclusiveness in every facet of the legal cannabis industry, including: access to licensing, business opportunity, education and training, industry climate, staff recruitment, hiring, and retention.
The Summit, the most influential business and policy event in the cannabis industry, takes place this year in Oakland, CA, June 20-22. Attendees will be exposed to the most concentrated learning opportunity this industry offers, with an ideal chance to meet with many of the industry’s leading professionals, from all aspects of the business.
Anyone can apply for the Inclusion Initiative scholarships, but preferential consideration will go to those from groups currently under-represented in the cannabis industry and in need of assistance to enter or grow within the industry. The recipients will be selected by the members of NCIA’s Minority Business Council.
Your support will help us take concrete steps to build the kind of inclusive, level playing field that is essential to the industry’s success. Sharing the wealth of information and opportunities this industry has to offer with those who may not otherwise have this kind of access is one way to strengthen and diversify our community.
Video Newsletter: Lobby Days 2016 Recap
This year’s NCIA Cannabis Industry Lobby Days were the largest and most influential in history.
Watch the video above for a recap of our most successful Lobby Days yet!
Our Government Relations team in D.C. been hearing back from our advocates in Congress saying how happy they were with the meetings and how they have heard from other offices looking to co-sponsor our priority legislation. NCIA’s message is being heard on Capitol Hill.
Even if you weren’t able to attend this year’s Lobby Days, you can still contribute. Use our simple online tools to email or call your representatives in Washington, D.C., and tell them to fix federal marijuana laws!
The Life of a Cannabis Grower – 10 years from the first plant
When asked to write for the NCIA blog, I first thought I’m not sure if anyone really wants to read my ramblings via an open blog format. So I thought about where most of my cannabis conversations start and end. More often than not, I am asked how I started out, what it has been like, and where I think the industry, Solstice, and myself are headed. Recently I celebrated 10 years cultivating the cannabis plant and I figured this format is as good as any to rehash (pun intended) the last decade of my life.
In 2006 at the ripe age of 21, I took my first step into the cannabis cultivation world for two reasons; an act of civil disobedience, and so that my friends and I could have the best cannabis around. I was given a few seeds and a light from a close friend and in a rather paranoid fashion I began my journey in a small closet in my one-bedroom apartment in Seattle. I read everything I could get my hands on and constantly experimented with the plant. Faster than I had imagined, I was through several harvests and quickly converting my bedroom into a grow room. As the size of my grow increased, so grew my paranoia and I determined I could no longer risk my future by illegally growing cannabis.
Within days of deciding to stop growing I was introduced to the realities of medical cannabis and that I could cultivate legally with a doctor’s recommendation. Receiving my first recommendation was a massive catalyst of learning and consciousness. As a person who dealt with chronic pain for most of his life and as a respite care provider, my world was forever improved. I realized that I personally could massively benefit from the medical values of the plant and as a care provider I could help to provide these values to others. Upon that realization I jumped head first into the pool and rented my first grow house.
All the while I was growing medical cannabis for others and myself, I never planned on doing it forever. During this time I was going to college to obtain degrees in education and I never saw “Elementary Teacher’s Marijuana Grow House Discovered by Seattle Police Department” as being a good headline or one that would help me further my career as an educator. It was planned that I would stop growing at the scale I was when I finished college, but it turned out that the universe had different plans for me. My world changed forever when Seattle Public Schools went on a hiring freeze and I was told it would be years before I could get a job in Seattle.
At that point I was lost and if it were not for a good friend, Trek Hollnagel, who I had taught to grow, opened my eyes to the reality of a career in the new world of the cannabis industry. To say the least in those early days we had little to no clue what we were doing. We went from moving to California, to deciding to “revolutionize” medical cannabis in Washington by starting four companies from dispensaries to merchant services. Of course we attempted to do all of these at once. After a few years of being pulled in 1,000 directions I decided to bow out and begin a new adventure. It was then in early 2011 I founded Solstice with Will Denman and hoped to only be pulled in 100 directions by focusing on cultivation.
Will and I started Solstice with the goal of helping to legitimize and normalize medical cannabis by being a public cannabis cultivator that was transparent about what we did and why, with everyone from law enforcement to patients. Simply put, we wanted to take the plant from what marijuana was to what cannabis can be. This was a rather crazy concept at that point in Washington’s history, but we took Steve DeAngelo’s charge of “out of the shadows and into the light” to heart. When the first Times article came out about how we were building the state’s first fully permitted cultivation facility, my paranoia was elevated to say the least.
Fortunately, instead of being cast out of society and thrown in prison we were embraced and celebrated. This gave us a platform to further our goal of helping to legitimize/normalize and we were welcomed in by legislators and regulators to craft what the world of regulated cannabis was going to look like. It was then that we successfully helped to write and pass our first ordinance for cannabis at the city level. From there under the Solstice flag we have helped to craft countless pieces of legislation and regulation from the neighborhood micro level in the SoDo District to the international stage at the United Nations and everything in between. Though we spend a lot of our time working on policy (I’m currently on a plane to DC to lobby Congress with NCIA!) we actually grow a good amount of cannabis.
At Solstice we have done so much with the plant and a have stellar team that has grown the business beyond my wildest dreams. It’s crazy, we’ve gone from starting the company in the downstairs of my house to building multiple state of the art facilities and working with sun-grown partner farms with canopy exceeding acres and acres of cultivation in both the medical and adult uses systems. We are also very proud to have the distinction of being the first cannabis brand in the first fully legal state. Along the way, we have grown cannabis that has won countless awards, stopped children from having seizures, at a high point employing 75 people, and had a lot of fun along the way.
Looking back ten years to that day I propagated those first seeds in my closet, I am overwhelmed with gratitude. I have been so incredibly fortunate to get to learn so much, grow a business, manage to succeed while failing a lot, make life-long friends, and some say, change the world. Going from not planning to do this for that long to not even being able to comprehend doing something else with my life; it’s been quite a ride. In truth for me, cannabis is my life’s work.
For more information about my story, please check out the Solstice Company Story video:
In order to cast a vote, you will need to log into NCIA’s secure member ballot using your member company login. Only ONE ballot can be submitted per member company.
Please be sure to download and review our complete Voter Guide (PDF) before casting your vote.
Board of Directors Candidate – Etienne Fontan
by Etienne Fontan, Director of Berkeley Patients Group
In the early days of Berkeley Patients Group (BPG), we had visions of a mature, responsible industry that would provide affordable, high quality medicine to everyone who needs access. We envisioned a future where truth and science trumped fear and lies. We dreamed of an industry with quality and testing standards and favorable banking regulations. And we did everything in our power to push this agenda forward with courage, integrity, and the patients at the center of everything we do.
Look how far we have come.
Today, many of our early visions have come to fruition. Through our hard work and relentless drive, we live in world that is far more tolerant to cannabis than ever. We live in world where more than half of America lives in a state with some form of legal cannabis. But there is still an incredible amount of difficult work to be done.
Throughout my tenure at BPG, I have worked tirelessly to innovate and question our own thinking and overall direction. I have been instrumental in constantly redefining (and occasionally disrupting) the industry. These efforts have driven positive change for our business and our industry alike.
“Change is the law of life. And those who look only to the past or present are certain to miss the future.”
— President John F. Kennedy
After 23 years in this industry, my focus continues to be on our very bright future. We are in a time of great progress and rapid development; visionary leadership at the helm of the NCIA is integral to further legitimizing and solidifying our nascent industry.
When you cast your vote by May 16th, please cast your vote for innovation, progress, and integrity. I look forward to continuing to serve all of you.
In order to cast a vote, you will need to log into NCIA’s secure member ballot using your member company login. Only ONE ballot can be submitted per member company.
Please be sure to download and review our complete Voter Guide (PDF) before casting your vote.
Board of Directors Candidate – Aaron Justis
As someone who’s been active in the cannabis movement for nearly two decades, and a member of the NCIA board of directors since 2014, I’m thrilled by the progress we’ve made in the last two years towards ending cannabis prohibition and creating a properly regulated economy around this most beneficial plant. But it’s not enough. My driving motivation, now as when I first became a member of this culture, remains helping to create a world where no adult faces punishment for cannabis, and the plant is safely and readily accessible to all who want or need it.
In my role as president of Buds & Roses, a vertically integrated medical cannabis dispensary in Los Angeles, I’ve experienced firsthand the political, legal, and commercial challenges facing cannabis growers, product manufacturers, and retailers, while navigating one of the most difficult and shifting regulatory environments in the country. Despite these and other business challenges, I’ve nonetheless made a personal commitment to devote at least half of my working life to supporting cannabis as a political cause, including by attending NCIA board meetings and working directly with our members, tirelessly lobbying public officials, speaking at events and conferences, serving as a trusted source for the media, and holding leadership positions in local, state, and national organizations that promote sensible industry regulation. including the Greater Los Angeles Collective Alliance (GLACA), and the California Cannabis Industry Association (CCIA).
Looking forward to the next two years, my main focus will be working to shape inclusive and effective cannabis regulations in Los Angeles and the rest of Southern California, as this is not only my home base, but also the largest legal market in the country. I’ll also strive to ensure that The Medical Marijuana Regulation and Safety Act—California’s new set of “seed-to-sale” regulations—is implemented in a way that supports a robust and broad-based industry that actively serves the needs of patients.
Also, this November, it’s likely that California voters will have a chance to approve full legalization of cannabis, assuming the Adult Use of Marijuana Act makes the ballot. As in many other areas of public policy—from automobile emission standards to consumer protection laws—the massive size and influence of California as the nation’s largest state and the world’s eighth largest economy ensures that the system implemented here will serve as a starting point for many future legalization/regulation efforts across the country, so it’s vital that any system we create and implement here works for growers, manufacturers, and retailers of all sizes, as well as consumers and patients.
While more broadly, with the presidential election rapidly approaching, the future of federal cannabis policy—as it relates to everything from enforcement to scheduling to tax reform (including 280E and banking)—looms large as both an exciting opportunity for progress and a potentially serious challenge, depending on who wins the presidency, and how our industry responds.
To continue our incredible progress, and not suffer a setback, I believe it’s vital that we’re represented by leadership with a long track record of promoting cannabis legalization as a public policy issue, or we risk coming across as just another industry lobbying in its own financial self-interest.
If I win re-election to the NCIA board, I promise to use all of my experience and resources to continue our breathtaking progress, and that I won’t stop advocating for this cause until all 50 states (and the rest of the planet) have ended their unconscionable War on Cannabis. If you have any questions or concerns, or just want to hear more about my goals and strategies, please contact me via budsandrosesla.com.
In order to cast a vote, you will need to log into NCIA’s secure member ballot using your member company login. Only ONE ballot can be submitted per member company.
Please be sure to download and review our complete Voter Guide (PDF) before casting your vote.
VOTING NOW OPEN: 2016 Board of Directors Election
NCIA’s annual board of directors election is now open for all members looking to help select the leadership of the cannabis industry’s only national trade association!
If you are a member of NCIA, we hope that you will take some time to consider the great candidates vying for a seat on the board and cast a vote between now and May 16, when the online election closes.
For NCIA members:
In order to cast a vote, you will need to log into NCIA’s secure member ballot using your member company login. Only ONE ballot can be submitted per member company.
If you do not remember your password or are having trouble logging in, please contact us at info@thecannabisindustry.org or (303) 223-4530.
Please be sure to download and review our complete Voter Guide (PDF) before casting your vote.
Not yet a member of NCIA? If you are not a member of NCIA but want to participate in the election, join today and we’ll provide you access to the online ballot. Your membership will also support the industry’s only unified and coordinated effort to reform federal marijuana laws as well as provide other member benefits enjoyed by the nearly 1,000 responsible cannabis businesses that make up NCIA’s network.
A few other important items about the board election:
Each member business can only vote once and votes cannot be changed once submitted online.
Members can vote for up to 11 of the 22 nominated candidates.
Votes are weighted according to membership status. If you are a member and would like to upgrade your membership to increase your influence in the board election, please contact us at (888) 683-5650 to process the upgrade before completing your online ballot.
There are eleven open board of directors seats and 22 nominated candidates (including ten current board members seeking reelection). Please refer to your voter guide for information on all the candidates and for more information on board election logistics before casting your vote online.
2016 Board Candidates:
Caela Bintner – Faces Human Capital Management
Brian Caldwell – Triple C Collective
Alex Cooley – Solstice
John Davis (incumbent) – Northwest Patient Resource Center
Troy Dayton (incumbent) – The ArcView Group
Etienne Fontan (incumbent) – Berkeley Patients Group
Steve Janjic – Amercanex
Neil Juneja – Gleam Law
Aaron Justis (incumbent) – Buds and Roses Collective
Brendan Kennedy – Privateer Holdings
Kris Krane (incumbent) – 4Front Ventures
Neal Levine – LivWell Enlightened Health
Jaime Lewis (incumbent) – Mountain Medicine
Randy Maslow – Ianthus Capital
Norris Monson – Cultivated Industries
Lance Ott (incumbent) – Guardian Data Systems
Erich Pearson (incumbent) – SPARC
Glenn Peterson – Canuvo
Tom Quigley – Gluu
Ean Seeb (incumbent) – Denver Relief Consulting
Bryan Sullivan – DANK
Scott Van Rixel (incumbent) – Bhang Corporation
Participation in NCIA’s board election is one of the most important ways to engage as a member of your trade association, as it ensures that your values are represented within NCIA’s leadership. NCIA’s elected board is responsible for approving the organization’s budget and strategic plan as well as contributing to the organization financially and through developing membership.
Thank you for your membership and commitment to working together to build the responsible, legitimate, and sustainable industry that we envisioned at the founding of NCIA.
Member Spotlight: District Growers
While the fate of establishing a well-regulated cannabis industry in the District of Columbia remains up the air, a small handful of medical marijuana dispensaries have been operating for several years to serve extremely ill patients in our nation’s capital. Located in the northeast neighborhood of our nation’s capital, District Growers is a close-knit, local business founded with the goal of creating only the highest quality cannabis products on the market. This month, we chat with owner Corey Barnette to hear more about efforts to serve the community of Washington, D.C.
Tell me a bit about you and why you opened District Growers?
District Growers owner Corey Barnette
My background is that of an engineer-turned-investment-banker-turned-venture capitalist. In early 2003, I stepped away from the Small Enterprise Assistance Fund, an emerging market venture fund, to acquire small high-growth companies operating in traditional industries. Between 2003 and 2010, I and my team acquired six different small businesses across the country in numerous industries.
In 2008, a friend and colleague invited me to serve on the board of – and eventually acquire – the San Diego Medical Collective (SDMC), a dispensary in San Diego, California. The purchase of SDMC was my entry to the formal medical cannabis industry. While operating in San Diego, my team and I built two of the ten largest dispensaries out of more than 238 dispensaries in the San Diego area. We served a patient base greater than 16,000 patients strong and produced approximately 30% of the medicine provided within our own patient gardens. After federal authorities began threatening landlords in the San Diego area, I sold the operations in San Diego to my employees after converting our platform to a delivery service.
Upon winning a license in Washington, D.C., where I maintained residence since 1999, I founded District Growers to offer medical marijuana program patients with safe, high-quality, medicinal-grade cannabis and cannabis-infused products. I also acquired the Metropolitan Wellness Center, a licensed dispensary in Washington, D.C., to provide a high-quality, dignified purchasing experience to patients in a comfortable and aesthetically pleasing environment. Leveraging our prior experience, knowledge of local preferences, and superior operating tactics, we have become the largest dispensary operator in Washington, D.C., with approximately a third of patients belonging to our dispensary exclusively.
Why should patients seeking medical cannabis seek out District Growers?
At District Growers, we recognize that patients depend on our products for their livelihood and well-being. Further, many of those patients are our employees, relatives, and friends. Because of this, we engage in a constant quest to offer the best quality products – bar none.
Internally, we use the phrase “Grow True” to define our efforts. We use this term as a constant reminder of our goal to provide to those who depend on our solutions. To accomplish this, we marry cutting-edge cultivation solutions, proven technologies, and nature’s very own touch to achieve unmatched quality. When it comes to cultivation, we believe that convenient shortcuts should never overcome proven methods. Consequently, we have taken the time to optimize our methods and processes to deliver the highest quality. From our production methods to our service, we endeavor to exceed all expectations. It is not enough to be the best if the best is not perfect. Put simply, to Grow True is to pursue perfection.
As a business owner, you’re very involved in your community and in causes that you care about. Can you tell us more about what matters most to you, and how your business participates in pushing for progress?
The team at District Growers
As a provider of relief solutions to the sick and vulnerable, District Growers views its entire offering as a betterment to the community. Additionally, we recognize that our industry carries with it a negative taboo. To combat this taboo and to carry the burden of good stewardship within our community, we push for progress primarily in three ways: in the garden, in the community, and in the town hall.
In the Garden – Simply put, we endeavor to be the most trusted source of medicinal grade cannabis to patients seeking treatment with cannabis.
In the Community – District Growers is a strong supporter of community gardens in Washington, D.C. We offer employees paid time-off when such is approved in the service of working with community gardens and in-home fruit & vegetable gardens.
In the Town Hall – District Growers actively works with legislators, regulators, and activist organizations to set policies around cannabis that better serve the public interest. It is our belief that today’s prohibitionary policies do more harm than good to our society. Consequently, we actively seek to change these policies for the betterment of our communities and our industry.
Why did you join NCIA?
Because we exist in an industry that suffers a negative stigma, it is imperative that we organize as an industry to promote our industry image, to promote good policy, and to promote good outcomes. NCIA is best positioned generally to do that. Consequently, we seek to be supportive.
On April 4th, Senator Schatz of Hawaii became the 12th Senate co-sponsor of the Marijuana Business Access to Banking Act (S 1726).
Ean’s overall sentiment about the experience? Hard work pays off.
Ean Seeb, Denver Relief Consulting:
It was a sense of accomplishment in that when you’re working with Congress, things are very slow-moving and we have been dealing with the banking and tax issues repeatedly since my first NCIA Lobby Days in 2013.
As far as the experience of going into a congressional office and telling them you’re working with cannabis and asking them to back or co-sponsor some legislation, back then, it was a foreign thought. Contrast that with now – to walk in and have the recognition, know what we’re doing, and three months later to see a Senator actually fulfilling the only request that we made to him, specifically, to co-sponsor this bill.
All of our efforts are not for naught. If you put your mind to it, you go to work, and you extend some effort on behalf of the industry, you can make powerful, meaningful change here. Having another Senate supporter, even harder to come by than on the House side – it’s an incredible accomplishment.
I was delighted. It’s not due to any one person individually. NCIA’s Michael Correia, Director of Government Relations, set up the meeting and put it all together. It made me feel better about working hard and diligently with a team and getting to the solution to the challenge we’re facing. Sen. Schatz can’t himself enact the banking bill, but this is one more step toward chipping away at cannabis prohibition as we know it.
Tae Darnell and Ean Seeb stand outside of Senator Schatz’s congressional office in D.C.
It was really helpful to have my fellow NCIA member Tae Darnell there. I didn’t know it at the time, but Tae wrote the draft legislation for Hawaii, so he was really well-informed on the issues we were discussing and was able to provide some good examples as to why it was important to get behind the bill.
Tae Darnell, Sensi Media:
I’ve been deeply involved with Hawaii since 2010, when I drafted the first version of the medical marijuana bill that just passed. Although much has shifted since the original version, I’ve developed close connections at the state level and have a particular affinity for Hawaii’s role in the advancement of cannabis regulation because of those relationships.
When Ean approached me about lobbying with Michael and speaking with the federal arm of Hawaii (one of those being Senator Schatz’s office), I jumped at the opportunity. I think it’s incredibly helpful to be able to share direct experience and engage conversation that personalizes the story at a federal level. I also think it helps to be able to diversify perspective. In that regard, Ean was able to share his NCIA experience as well as Denver Relief’s experience both as a dispensary and consultant. I was able to share my experience as an (almost) 10-year cannabis lawyer who assisted Colorado with HB 1284, SB 109, and A64, and also as a drafter of Hawaii’s legislation. As a co-founder of Surna and Sensi Media, I was also able to share my experience as an entrepreneur on the ancillary side.
In the end, and based on my experience as a cannabis lawyer and entrepreneur, I’m incredibly excited that the work of NCIA is able to facilitate such incredible accomplishments. The countless hours of effort, put in by so many, are rewarded when we, as an industry, are able to accomplish goals like gaining sponsorship for critical banking legislation. I think successes like these are further validation of how critical it is that we continue to aggressively support the work of NCIA. The time is now to effect change, and the nearly 1,000 member businesses of NCIA are a major catalyst for why it’s happening.
Want your voice heard in our nation’s capitol on issues affecting the cannabis industry? Join us for our 6th Annual NCIA Member Lobby Days in Washington, D.C., on May 12 & 13, 2016.
To make the most out of the Lobby Days experience, register early so that we can begin the process of setting up meetings for you on the Hill. Members who register before April 30th will be entered to win admission and travel expenses for two at NCIA’s Cannabis Business Summit & Expo, including airfare and lodging.
Breaking It Down: Appropriations
by Michelle Rutter, NCIA Government Relations Coordinator
CannApprops
Every year, Congress must pass appropriations legislation to fund federal government operations for the upcoming fiscal year. This annual funding bill has been one of the only avenues by which pro-cannabis reform language can be inserted into the federal budget, due to Congress’ inability to pass meaningful stand-alone legislation addressing the legal cannabis industry.
The Appropriations Committees have always been two of the most influential committees in Congress, since the Committees’ power is derived from its ability to disburse funds. The House Appropriations Committee is currently chaired by Rep. Hal Rogers (R-KY), with Rep. Nita Lowey (D-NY) as the highest-ranking Democratic member, and the Senate Appropriations Committee is chaired by Thad Cochran (R-MS) with Barbara Mikulski (D-MD) as the ranking Democrat.
Because it is unlikely that Congress will enact stand-alone pro-cannabis legislation this session, NCIA has decided to focus intensely on the appropriations process this year. In addition to making sure that the Rohrabacher-Farr medical cannabis amendment passes for the third year in a row, NCIA will be focusing on getting amendments included in the final budget bill that pertain to banking access and that protect all state-compliant cannabis businesses, not just medical ones. The continued inclusion of the Rohrabacher-Farr amendment in the final budget bill is crucial to cannabis policy moving forward into a new administration. We at NCIA want to ensure that this amendment is seen as non-controversial as we go into FY2017.
Over the years, the budget process in Washington, D.C. has become broken and it has become harder for Congress to perform basic functions. New Speaker of the House Paul Ryan (R-WI) has thrown his support behind returning to “regular order” in the budget process – meaning that Congress would return to the piece-by-piece appropriations process rather than passing large omnibus budget bills as has been the case in recent years. Although the Speaker has good intentions, small groups and caucuses in the House of Representatives are unhappy with the spending levels proposed in many of the new appropriations bills, making it more likely that an omnibus bill will again be passed, despite Speaker Ryan’s desire to return to regular order.
This “regular order” of the appropriations process usually starts in February as various pieces of legislation works its way through the Appropriations Committee and finally to the House/Senate Floor. Congress typically starts with less controversial bills in April and then works through the spring and summer months until all appropriations bills are completed. Legally, they need to be completed by September 30th (as October 1st is the start of the new fiscal year). Regular order gives NCIA multiple opportunities to insert pro-cannabis amendments into the legislation. With an omnibus or stopgap bill, it becomes much more difficult to include pro-cannabis amendments.
In Years Past
Last year, there were two pro-cannabis amendments included in the Commerce, Justice, and Science Appropriations bill that made it into the final budget: the Bonamici-Massie industrial hemp amendment and the Rohrabacher-Farr medical marijuana amendment. The Bonamici-Massie amendment blocks federal money from being used to prevent states from allowing the use, distribution, possession, or cultivation of industrial hemp. This means that the federal government cannot use federal funds to enforce federal law against state-compliant businesses dealing with hemp. This measure passed the House of Representatives overwhelmingly: the vote was 282-146, with 101 Republicans voting in favor.
The second pro-cannabis amendment in the FY2016 budget was the Rohrabacher-Farr medical marijuana amendment, which was included for the second year in a row. This amendment bans the Department of Justice from spending money to prevent the implementation of state-level medical cannabis programs, in addition to removing funding for federal medical cannabis raids, arrests and prosecutions in states where medical cannabis is legal. The vote count increased from 219-189 in 2014 to 242-186 this year, with 67 Republicans voting ‘Yes’. Just like the Bonamici-Massie hemp amendment, the Rohrabacher-Farr amendment prohibits the Department of Justice from enforcing federal law against state-legal medical cannabis businesses.
Remember…
It’s crucial to remember that these appropriations amendments only pertain to the current fiscal year and have to be voted on and renewed every year. The NCIA team and our lobbyists in Washington, D.C., are working intently with appropriators and other Members of Congress to ensure that pro-cannabis amendments and provisions are included in the federal budget this year – whether that be through “regular order” or otherwise.
Want your voice heard in our nation’s capitol on issues affecting the cannabis industry? Join us for our 6th Annual NCIA Member Lobby Days in Washington, D.C., on May 12 & 13, 2016.
To make the most out of the Lobby Days experience, register early so that we can begin the process of setting up meetings for you on the Hill. Members who register before April 30th will be entered to win admission and travel expenses for two at NCIA’s Cannabis Business Summit & Expo, including airfare and lodging.
Video Newsletter: Member Spotlight on Eden Labs
In our latest Video Member Spotlight, NCIA introduces you to one of our Sustaining Members based in Seattle.
Eden Labs specializes in the design, manufacture, research, and development of a wide range of botanical CO2 extraction equipment. CEO AC Braddock also serves on NCIA’s Board of Directors.
Watch the video to hear AC describe the passion for plant-based medicine that brought her to Eden Labs and the commitment to advocacy and community that brought her to NCIA.
“Once you become a businessperson in this industry, you automatically become an activist…”
You can meet the Eden Labs team and more than 3,000 other cannabis industry leaders at the 2016 Cannabis Business Summit in Oakland, CA, June 20-22. Get your tickets today!
Want your voice heard in our nation’s capitol on issues affecting the cannabis industry? Join us for our 6th Annual NCIA Member Lobby Days in Washington, D.C., on May 12 & 13, 2016.
Guest Post: If I use marijuana, will you hold it against me?
Someone, someday is going to demonstrate their disapproval of you by choosing a distinguishing characteristic and labeling you with it. Like horse face. Or eagle beak. Or pothead stoner.
It’s called stigma, and it’s a form of prejudice that is especially fascinating to me because I’m one of the cadre of professionals who wants to bring cannabis out of the alley and onto Wall Street.
I am the founder of AnnaBís, a company making fashionable, functional and odor-controlled accessories to carry cannabis. We’re dedicated to helping women feel free and sophisticated when carrying their medicine, recreational supplies, or both.
So we asked Penn Schoen Berland (PSB) to ask a nationally representative sample of 800 Americans, 18+, about their attitudes toward people who consume marijuana, alcohol, and cigarettes. We wanted to know: Who is most judgmental? Against whom? For what?
Here’s what we learned:
More than half of people surveyed either don’t care or are favorably disposed about marijuana usage among their friends, co-workers and family members.
Nearly 50% are neutral or favorably disposed about the marijuana usage of teachers, elected officials, doctors and police officers. Though all respondents were most judgmental of police officers who consume cannabis, even in this group more than 4 in 10 either don’t care, or are favorably disposed.
Alcohol remains less of a stigma, but cigarettes are pretty close to cannabis when you consider they’re a legal product.
The overarching question we asked was:
“How would your opinion of each of the following people change if you knew they were a responsible consumer of marijuana / alcohol / cigarettes? (Much more favorable, somewhat more favorable, no more or less favorable, somewhat less favorable, much less favorable.)
We also learned that Republicans are the most judgmental about marijuana consumption, particularly when it involves police officers, doctors, and elected officials. And the majority of Democrats say they are either more favorable or no more or less favorable towards people who are responsible consumers of marijuana across the board:
Based on 61 percent of Americans being in favor of marijuana legalization (according to AP-NORC Center for Public Affairs Research) and our data reflecting positive or neutral attitudes about responsible consumption among key community members, we think we’re experiencing a tipping point in favor of tolerance and choice. Additional findings are coming soon, and this will serve as a benchmark to see how things have changed in a few months. We’ll keep you posted!
Jeanine Moss is the Founder of Annabis, LLC, a member of NCIA since November 2015. She grew up in Venice, California, so she is no stranger to cannabis. The daughter of an artist and a rocket scientist, she loves doing things that have never been done before and also owns Turning Point Solutions, a marketing firm established 13 years ago to help companies capitalize on change. She created the first computerized horse buying and breeding registry, the first newsletter for women business travelers, the first New York City Fun Pass, the first Bring Your Parents to Work Day, the first luxury accessories for women who consume cannabis, and is especially proud of her work as communications chief for The September 11th Fund.
Guest Post: Cash Management in the Cannabis Industry
Jeff Foster, Co-Founder, Jane, LLC
Interviewed by Vinnie Fiordelisi, Sr. Director of Corporate Communications, Jane, LLC
Jeff Foster, co-founder of Jane
For nearly two decades, Jeff Foster has worked with some of the world’s largest retailers and financial institutions to define, design, and implement e-commerce and retail payment processing and risk management solutions. Here he shares some advice and insights on cash management and financial services in the cannabis industry.
What is the state of cash management in the cannabis industry?
It’s a real mess. Employee theft is even higher than in bars and restaurants. Many of the dispensary owners we talk to say it’s as high as 10-15% of sales. Robberies are a real threat. The cash reconciliation process is time-consuming, costly, and susceptible to human error. But the biggest issue is it’s almost impossible to run a multi-million dollar business with all cash.
What are the common problems you hear from dispensary owners when it comes to them doing business effectively and simply?
The cannabis business has the most complicated legal and regulatory framework in the history of retail and many of the dispensary owners are first-time entrepreneurs. Combine these two things, further complicate it by a lack of banking and a business that is bustling seven days a week, and you find it extremely difficult to navigate this constantly evolving landscape.
What challenges do dispensaries face as it relates to financial services?
What challenges don’t they have? Very few have access even to depository banking, much less checking. Most cannot process credit or debit cards legitimately so they are on a strictly cash basis. So imagine having to make payroll, pay rent, or buy hundreds of thousands of dollars worth of product without the ability to write a check or send a wire. Most of the dispensary owners we talk to spend as much as 25% of their time simply managing this process. With full access to banking and financial services those same tasks would take almost no time at all.
Where do the federally regulated banks stand on working with cannabis businesses?
Marijuana is still a Schedule I drug, selling it is a felony, and the Bank Secrecy Act prevents banks from taking deposits known to be a result of a crime. This obviously makes the landscape particularly treacherous for a federally chartered bank.
I do believe more and more banks will get involved in the marijuana business. We are seeing it with the financial institutions we are working with in Colorado for our Triple Play program. There is too much momentum and popular acceptance to put the genie back in the bottle. So it is important for marijuana retailers to be prepared. Banks that do accept cannabis businesses are going to be very cautious and only accept clients that are unquestionably above board and fully transparent.
Any final advice for dispensary owners?
Yes, for dispensaries accepting Visa and MasterCard, my advice is to stop unless and until you have signed a contract that includes the name of the bank. I’ve been in payment processing for almost 20 years and our other company currently processes over $3 billion annually in Visa/MasterCard for some of the largest retailers in the world, so I have some knowledge on the subject. There are very few sponsor banks in the U.S. who will knowingly accept a merchant in the cannabis business and both Visa and MasterCard strictly prohibit utilizing a bank outside of the U.S. for domestic transactions.
Unfortunately some dispensary owners have been led to believe that if they have a terminal and their deposits show up in the bank that “it’s working.” Well that may be true, but I can nearly guarantee there is a break in the chain somewhere and that broken link can lead to fines in the hundreds of thousands of dollars and expulsion from the Visa/MasterCard network for life…just for a start.
Banking is coming. Credit card processing is coming. Dispensary owners need to focus on running their businesses within the framework established by the Department of Justice, the Financial Crimes Enforcement Network and their state and local laws regarding the sale of marijuana. If they do that, and remain patient, they will be first in line as legitimate financial services finally arrive.
Jeff Foster is co-founder of Jane, LLC, a Sponsoring level member of NCIA since July 2014. For nearly two decades, Jeff has worked with some of the world’s largest retailers and financial institutions to define, design and implement e-commerce and retail payment processing and risk management solutions. Jeff co-founded Jane after recognizing the overwhelming need for cash management and financial services solutions in the legal cannabis industry. As an innovator in financial services, Jeff is a sought-after expert and speaker. He has been quoted in numerous publications including; The Wall Street Journal, Business Week, The Financial Times, The Washington Post and The Washington Business Journal and has appeared on Bloomberg Television and ABC News. Jeff also speaks at countless financial services and cannabis trade shows globally, where he advocates and educates on everything from strategy and trends to best practices.
Help support a marijuana and multiple sclerosis study at CSU
by Thorsten Rudroff, PhD, FACSM, Colorado State University
Medical marijuana is commonly used to treat pain and spasticity, or uncontrolled muscle contractions, in people suffering from multiple sclerosis. While scientific studies have shown marijuana and its constituents to be fairly effective in treating these specific symptoms, not much else is known about the positive and negative effects marijuana may have on other disabling symptoms of MS. People with MS often have a multitude of symptoms and side effects related to the disease, and these symptoms often present themselves in very individualized ways. Currently our research group is hoping to investigate how medical marijuana may affect symptoms other than pain and spasticity, specifically motor impairments. Motor impairments range from difficulties walking, fine motor control, and the customary loss of strength that many people with MS develop.
In our study we are proposing to investigate this by performing a battery of physical function tests that are commonly used in the clinical setting, e.g. the timed up-and-go, the 5 rep sit-to-stand, and the 6 min walk test, on people who do and do not use medical marijuana. We also plan to determine whether the use of medical marijuana affects how the brain uses sugar, which is its primary source of energy. Previous investigations in our lab and others, have shown that people with MS often have a reduced usage of sugar in the central nervous system (brain and spinal cord) at rest and during exercise. This lower utilization has been linked to walking impairment, fatigue, and other side effects that people with MS often have. Our lab is unique in the fact that we are able to trace/quantify the usage of sugar as a source of energy by using what is called Positron Emission Tomography, or PET.
PET imaging is often used in cancer diagnostics, staging, and to determine the effects of treatment. We are one of the few labs in the world that use this technique for the investigation of exercise/physical activity related functions, such as the functional tests we are planning to perform. PET produces 3-dimensional images of the body to show where the sugar is being used. Using specialized computer software we can them compare the images of the groups and determine how regular marijuana usage affects the “normal” usage of sugar in people with MS.
Once the data has been collected we can compare the results from the medical marijuana users group to the “control” group and determine if there are any differences between the groups’ performance on any of the tasks. These comparisons will be the foundation for larger future research studies investigating the additional benefits of medical marijuana as a treatment for symptoms of MS.
In order to raise money to perform these studies we are currently running a crowdfunding campaign hosted by Colorado State University Charge!
The funds raised from the crowdfunding campaign will be used to pay our participants for their time spent in the lab, as well as to cover the cost of the PET imaging. At the conclusion of this study we hope to preliminarily identify additional benefits and potential side effects of medical marijuana and continue to scientifically justify the continued use of medical marijuana for people with MS.
Thorsten Rudroff, PhD, FACSM is an Assistant Professor in the Department of Health and Exercise Science at Colorado State University (CSU) where he is the Director of the Integrative Neurophysiology Laboratory. Dr. Rudroff’s research interests include the neurophysiology of motor function and fatigue. He is unique in the fact that he employs neuroimaging techniques (e.g. Positron Emission Tomography (PET), Computed Tomography (CT), and Magnetic Resonance Imaging (MRI)) to study the interaction between the central nervous system and muscle. His current research projects are aimed at identifying the effects and mechanisms of cannabis on motor and cognitive function in people with Multiple Sclerosis.
His research has been funded by the National Institutes of Health/National Institute on Aging to investigate muscle energetics in older adults and by the National Multiple Sclerosis Society to investigate skeletal muscle glucose uptake during walking in people with MS. Currently, he is conducting a crowdfunding campaign to collect preliminary data identifying the benefits and potential side effects of medical marijuana use by people with MS. The goals of this research are to improve the quality of life for people with MS and scientifically justify its continued use as a therapeutic agent in neurological diseases.
New Member Benefit! Share your company news with the cannabis community
Did you just release a new product? Hire a hotshot new executive? Do something great for your community? Let the cannabis community know about it by posting your story to NCIA’s new Member News page.
In an industry growing and changing as rapidly as ours, exciting things happen at our member businesses every day. That’s why NCIA is rolling out a new member benefit, allowing you to share your company news, announcements, and press releases directly on the NCIA website – a central information hub for the cannabis business community.
The Member News section can be found under the ‘Resources’ menu on our website. If your business is a member of NCIA and you would like to submit a company news update for online publication, please fill out our Member News Submission form.
We look forward to sharing your exciting news!
NOTE: Member News items are published as submitted by NCIA member companies and are not edited, fact-checked, or endorsed by NCIA.
Member Spotlight: Palm Springs Safe Access
Every month, we zoom in on one of our members to hear their stories and learn more about their businesses in this ever-changing industry. For the month of April, we visit with Robert Van Roo of Palm Springs Safe Access in California. PSSA is a not-for-profit medical cannabis dispensary offering a modern, sophisticated environment for qualified patients to access affordable, high-quality, safety-tested medicine. PSSA strives to be a model corporate citizen, partnering with other organizations to help improve the community’s collective health.
Cannabis Industry Sector:
Medical Cannabis Provider
NCIA Sustaining Member Since:
October 2014
Tell us a bit about you and why you opened Palm Springs Safe Access (PSSA)?
My name is Robert Van Roo and I’m the co-founder and president of Palm Springs Safe Access. It’s been fifteen years since my first experience with cannabis. Spending most of my youth and adult life in Grass Valley and San Francisco, I’ve been exposed to a lot of friends working in the industry. I’ve seen this medicine change countless lives and it’s changed mine as well.
Throughout 2009, President Obama’s speeches struck a chord with me, with clear messages encouraging entrepreneurs to be bold and create new jobs and change. I took this calling very seriously – although I’m sure he wasn’t aiming at cannabis startups. To hone that entrepreneurial spirit, I knew I couldn’t stimulate job growth as a photographer. However, I saw the potential through cannabis. So began my journey working in the California cannabis industry, with the first iteration of Palm Springs Safe Access (PSSA) taking shape in late 2011.
CEO and Co-founder, Robert Van Roo, and VP & Chief Agricultural Officer, Cody Henderson
At PSSA we believe when entrepreneurs with the right intentions work with cannabis, it can better the communities in which they operate and someday change the world. The uses of this plant are endless. This industry has the capacity to change lives and create new economic growth not seen in the United States for generations. We understand this is a utopian view, but that’s why Cody Henderson and I opened Palm Springs Safe Access. We did it to create change.
Why should patients seeking medical cannabis come to Palm Springs Safe Access?
We believe that our patients deserve an exceptional experience that begins the moment they walk through the doors of our facility and continues when they return home and use their medicine. Steve DeAngelo said it the best: “Out of the shadows, into the light.” I took this statement literally, so we built a well-lit facility with sweeping views of the mountain range here in Palm Springs.
Cody and I are both artists by trade, so naturally we had to have a creative and visually stimulating space. We worked with an 8,000-square-foot blank slate, with just concrete floors and four walls with no power. Everything was done in-house, from the interior design to the layout, down to the manufacturing of light fixtures and the finish work.
We continued this trend with our in-house cultivation. This ensures best practices and quality control for our patients. When it comes to products we didn’t produce ourselves, we carefully vet sources and individuals, in many instances physically going throughout California to see for ourselves where the products provided to our patients are cultivated, manufactured, and branded.
Our patients deserve only the best. Absolutely all our medicine is lab-tested for safety and potency. Independent testing by the City of Palm Springs verifies that we have the cleanest products in the city. Our flowers are nitrogen-flushed and then sealed with Boveda packs inside. All the latest science points to the important roll terpenes play in the medicinal qualities of each specific strain. That makes this collaboration with Boveda, the leader in two-way humidity control, very exciting because early research is already showing that there is 15% retention of terpenes when the 62% moisture packs are present. The packs add moisture as well and since Palm Springs is located in low desert we have to compete with dry conditions.
We believe patients should seek out our facility for the exceptional experience and highest assurance of safety that Palm Springs Safe Access provides through the tireless efforts of our entire team.
The Palm Springs Safe Access team
As a business owner, you’re very involved in your community and in causes that you care about. Can you tell us more about what matters most to you, and how your business participates in pushing for progress?
When it comes to cannabis, education and knowledge is paramount; we tirelessly work to educate patients, politicians, physicians, and peers in the industry. Lab testing became a benchmark mainly because those seeking the benefits of this plant often have compromised immune systems. Late in 2012, I began educating and lobbying the City of Palm Springs in regard to the importance of lab testing. Last year Palm Springs became the first city to ever contract a cannabis lab and independently test medicine being dispensed in their city.
I stay as active as possible with politics on local, state, and federal levels, continuing the conversation with city council members, members of Congress, and senators. We regularly create education and policy reports and actively engage policy makers. On a state level, we participate on both the Legislative and Retail/Delivery Committees with the California Cannabis Industry Association (CCIA) and stay as active as possible with NCIA. In May, I’ll be going to Lobby Days in DC for my second year.
When it comes to community involvement, the support of local organizations is key, and PSSA does its part. We are regularly involved with charitable events and infuse local charities and political activism groups with significant donations, support, and sponsorships. We believe it’s our responsibility to be involved in creating change locally. We strive to represent an accurate picture of our industry as active community partners and show what the cannabis industry can do.
We contribute as much time as possible to the NCIA Minority Business Council, which aims to create an inclusive and diverse industry respectful of all persons and create unique opportunities to attend NCIA events. This is a huge undertaking and we believe with proper programs in place our industry can provide job opportunities for under-represented and disadvantaged groups and individuals to gain insight on opportunities that are available in the industry. That’s why we support the NCIA Minority Business Council scholarship program whenever possible.
Why did you join NCIA?
Robert Van Roo, CEO and Co-Founder of Palm Springs Safe Access
Joining NCIA was the first thing PSSA did when we received our local permit. While PSSA was successful in Palm Springs, the fight for fairness on a state and federal level was clearly the end game. It was the next logical step to take, and we believe it’s our responsibility as a legitimate and responsible member of the industry to support the important causes NCIA addresses.
When we joined, we were focused on helping advance causes like fair taxation, access to banking, and sensible policy on cannabis. Since then, NCIA has become so much more than that to us. It’s a community of like-minded cannabis entrepreneurs. We’ve developed relationships with industry peers throughout the country at NCIA events. We’ve expanded our breadth of best practices through the education received at the exemplary NCIA summits and symposiums and have managed to stay current with the ever-changing landscape of the cannabis industry.
To make the most out of the Lobby Days experience, register early so that we can begin the process of setting up meetings for you on the Hill. Members who register before April 30th will be entered to win admission and travel expenses for two at NCIA’s Cannabis Business Summit & Expo, including airfare and lodging.
NCIA Accepting Nominations for Board of Directors Candidates
NCIA prides itself on the democratic system we employ to select our Board of Directors, who are tasked with overseeing the organization’s budget and strategic plan, as well as acting as ambassadors for the association. Board members also support NCIA and the NCIA-PAC through financial contributions and member recruitment.
NCIA’s Board of Directors is made up of 22 elected positions and the executive director, who reports to the entire board. Elected members serve two-year terms and elections are staggered with 11 of the 22 seats open this year. A list of current board members is available online.
The online ballot will open to all NCIA members on Saturday, April 30, and online voting will be open until until 11:59 p.m. Eastern Time on Monday, May 16.
NCIA utilizes a weighted voting system. Each member business can cast one ballot, voting for up to 11 candidates. Each ballot is then weighted according to membership status. A Sponsoring Member’s vote carries twice the weight of a Basic member’s vote and a Sustaining Member is weighted at five times that of a Basic member.
If you are not yet a member of your industry’s trade association but want to participate in the election as either a voter or a candidate, contact NCIA’s Laurence Gration at laurence@thecannabisindustry.org or (303) 223-4247. We are also happy to answer any questions you have about the election or upgrade your membership so your vote will carry more influence.
**NOTE: Board candidates may not nominate themselves or have someone else from the same member business nominate them. If you or someone at your company would like to run for the board, please contact a colleague at another NCIA member business to request a nomination. **
More information about the board election, including a voter guide with candidate information, will be made available to our membership by e-mail in the weeks ahead.
Video Newsletter: We’re going to D.C. in May, and so should you…
One of our most impactful events of the year is just two months away, and NCIA wants you to be there with us in Washington, D.C.
In this month’s video newsletter, hear from NCIA executive director Aaron Smith, as well as NCIA members Steve DeAngelo of Harborside Health Center, Jaime Lewis of Mountain Medicine, Brian Caldwell of Triple C Collective, and Ean Seeb of Denver Relief, as they share their stories about joining NCIA on Capitol Hill for our annual Cannabis Industry Lobby Days.
Register today for NCIA’s 6th Annual Cannabis Industry Lobby Days, May 12-13.
To make the most out of the Lobby Days experience, register early so that we can begin the process of setting up meetings for you on the Hill. Members who register before April 30th will be entered to win admission and travel expenses for two at NCIA’s Cannabis Business Summit & Expo, including airfare and lodging.
Guest Post: 2015 Cannabis Industry Market Analysis
2015 was a very exciting time in the cannabis industry. According to public opinion polls conducted in the U.S., between 51% and 58% of respondents were in support of legalization. The highest level of support comes from the age range of 18-34, showing a staggering 71% supporting full legalization.
In 2015, several states voted for some form of cannabis proliferation, and many more have taken decriminalization measures. With a year of adult-use retail cannabis now completed in Colorado and Washington, and the start of full legalization in Oregon, the tide seems to be slowly but steadily shifting.
Reflecting back on 2015, here were a few of the notable developments that resonated throughout the cannabis industry.
Emerging Markets
Currently there are twenty-three states and the District of Columbia that have laws legalizing cannabis usage in some form. Four states have completely legalized cannabis use for adults 21 and older.
On the medical side, several states opened their first cannabis dispensaries to the public in 2015. Nevada, Massachusetts, Minnesota, Delaware, and Illinois were among these states. Though sales have been slow going for various reasons, 2016 should be a landmark year for legalization in many of these newly developing cannabis markets.
Adult-Use Cannabis Boom
Colorado, Washington, Oregon, and Alaska have all completely legalized the possession of cannabis. On January 1, 2014, Colorado opened its first adult-use cannabis stores, which effectively combined their medical and retail markets. Their combined medical and adult-use system generated more than $699 million in gross revenue in 2014, with approximately $76 million in tax revenue collected. Washington, by comparison, opened its adult-use market in July of 2014 and finished the year with $64 million in total sales and $16 million in tax revenue collected.
The revenue figures for 2015 have eclipsed the previous year’s marks substantially. Colorado gross sales came in just over $996 million for 2015, with $135 million in tax revenue collected from close to 800 stores, servicing about 5.5 million residents.
Washington, by comparison, generated more than $357 million in retail sales, with more than $115 million going to the state as an excise tax. This revenue was generated at approximately 205 licensed stores, servicing 7 million residents.
Meanwhile, Oregon started a partial foray into adult-use cannabis sales by utilizing the existing network of medical dispensaries selectively approved for retail sales of cannabis flowers to anyone 21 and older. In July of 2016, Oregon will completely open its adult-use market. Alaska, with no medical dispensaries or infrastructure, will likely take much longer to develop as a viable market.
This chart references data from the Washington Liquor Control Board as well as The Cannabist website.
2016: Legalization Abounds
With the level of success, both fiscally and socially, that was achieved in relatively small states, it should be expected that 2016 will be a big year for ballot measures legalizing cannabis. There are several states that are gearing up for potential 2016 ballot initiatives. Massachusetts, Maine, Missouri, Ohio, Nevada, California, and Hawaii are the states that seem likely to make it to a vote.
Northeast
In the Northeast, there have been several developments causing optimism throughout the region. New England has taken a very progressive path to legalization. Every state has a medical cannabis market and has decriminalized possession of small amounts of cannabis with the exception of New Hampshire. New Hampshire has made at least six attempts to get decriminalization measures passed, but so far these initiatives have been unsuccessful getting past the State Senate. Ironically, four dispensaries are set to open in 2016 for medical patients that meet the qualifying conditions.
Midwest
Ohio had a ballot measure to legalize cannabis late in 2015. The legislation featured a basic monopoly on production being designated to 10 predetermined groups comprising wealthy residents. Unsurprisingly, there was overwhelming opposition, with the proposed legislation getting shot down by a margin of almost 2:1 against. We’ll likely see a second attempt to pass a legalization measure in 2016.
West Coast
With Washington and Oregon taking legalization measures, California is the next in line. At the end of the session in 2015, Californians passed the Medical Marijuana Regulation and Safety Act. This piece of legislation sets up the regulatory framework for a state-recognized medical marijuana industry. California, being one of the largest states, with a population of over 38 million residents, has had a vibrant quasi-grey market with an estimated 2,000 stores operating within the state. Despite the lack of reported sales figures, estimates of the California market are conservatively $3 billion to $5 billion annually. Should this market be legalized and regulated at some level, this could generate an estimated $450 million to $750 million in tax revenue, should the state impose a 15% tax rate.
2016 should be another historic year for the cannabis industry. With public opinion steadily growing in support of legalization, and the hysteria of an election year, it would not be surprising to see cannabis proliferation take the forefront in the national conversation.
Jim Makoso, Vice President of Lucid Oils
Jim Makoso is an entrepreneur in the cannabis industry. He joined Vuber Technologies as one of the original investors in February 2014. He is currently an Advisory Board Member and shareholder responsible for guiding strategic development. January 2015, Mr. Makoso founded Lucid Labs and Lucid Oils. He currently holds the position of Vice President and is responsible for strategic partnerships and business development.
VIDEO: 1 minute, 12 cities, a million reasons to join NCIA’s Cannabis Caucuses
NCIA’s first round of Quarterly Cannabis Caucuses were a powerful example of how we can build a successful industry together. But don’t take our word for it! Check out the video above to hear from attendees themselves.
Don’t miss out on your next opportunity to be a part of NCIA’s influential, information-packed quarterly event series. Cannabis Caucuses are FREE for NCIA members, and just $50 for non-members.
Register today for the Q2 Cannabis Caucuses, coming to a city near you in April!
Oregon – Portland, OR – Tuesday, April 12 – REGISTER NOW Mid-Atlantic – Washington, D.C. – Tuesday, April 12 – REGISTER NOW Northeast – Boston, MA – Thursday, April 14 – REGISTER NOW Florida – Miami, FL – Thursday, April 14 – REGISTER NOW Midwest – Chicago, IL – Tuesday, April 19 – REGISTER NOW Tri-State – New York, NY – Tuesday, April 19 – REGISTER NOW Colorado – Denver, CO – Thursday, April 21 – REGISTER NOW Southwest – Phoenix, AZ – Thursday, April 21 – REGISTER NOW Nevada– Las Vegas, NV – Tuesday, April 26 – REGISTER NOW So. California – Newport Beach, CA – Tuesday, April 26 – REGISTER NOW No. California – San Francisco, CA – Thursday, April 28 – REGISTER NOW Washington – Seattle, WA – Thursday, April 28 – REGISTER NOW
Member Spotlight: Naturally Mystic Organics
For NCIA’s March member spotlight, we cruise into Santa Cruz, California, to chat with the owners of Naturally Mystic Organics. Owners D’Angelo “Cricket” and Jozee Roberto offer the knowledge and traditions of ancient herbal medicine paired with their dedicated advocacy work in Santa Cruz on behalf of cannabis patients and environmental sustainability.
Cannabis Industry Sector:
Cannabis Infused Medical Products
NCIA Member Since:
May 2015
Tell us a bit about you and why you started Naturally Mystic Organics?
As we’ve raised our seven children over the past 23 years using plant medicines (non-cannabis), we’ve witnessed first-hand the amazing power herbs have to offer. We both have had the pleasure of growing up in California and being raised within the cannabis movement. Along the way we came to develop a personal relationship with cannabis as we’ve witnessed and experienced its numerous benefits. Quite compelled, we decided to share our high standards of what we consider to be real medicinal healing as an offering to the world.
Why should patients seeking medical cannabis look for products made by Naturally Mystic Organics?
We specialize in high-CBD products and provide the finest tinctures and topicals on Earth. We approach cannabis like an herb. As herbalists we take special care to craft with ancient methods, avoiding the use of metal to extract or infuse. We use glass, ceramic, and bamboo equipment and instruments.
In herbalism, as in any area of life, we learn that your final product is only as good as what you start with. For example, we pick only the best (top shelf) cannabis flowers for our tinctures, never trim, that has been grown with loving care and without the use of harmful pesticides or chemicals. Our topicals are made from the trim of these beautiful flowers. The spiritual connection between the plant energy and the herbalist is maintained throughout our process by setting the intention of health and well-being during production through prayer, silence, or chanting. If someone is having a bad day then that person does not make the medicine until a well-balanced attitude is in place. All other materials put into our products are certified organic and GMO-free. And to put the icing on the cake, we use violet glass bottles for our tinctures. Eliminating light is a supreme way to eliminate contamination after opening.
Tinctures provide a great alternative to consuming cannabis, as opposed to smoking it. Our tinctures, formulated for consistency and reliability of potency, are a great way to monitor dosage. Providing patients an opportunity to connect with other plant medicine that they otherwise might never have, we pair cannabis with other amazing herbs to help guide an endocannabinoid system to the desired outcome. Our Pure 1000 line of tinctures is designed for patients with extreme situations. Oh, and by the way, our tinctures taste great. Perfectly preserved terpenes make it taste like you are drinking a bud.
We are proud to present our humble offering to the world: supreme traditional cannabis herbal medicine in the form of tinctures and topicals – products fit for royalty.
You’re based in Santa Cruz, California, where regulations are constantly changing. Several pieces of legislation have been proposed to further regulate and legalize cannabis throughout the state. How have you been involved in this process?
We, Cricket and Jozee, are founding members and representatives of RCSC (Responsible Cultivation Santa Cruz). Santa Cruz County has a wide acceptance for the medicinal value of cannabis. Care for the environment and the safety of our communities are also shared values. Our county had a somewhat advanced policy about cannabis prior to 2015 that led to reports of environmental degradation and an assault to the quality of life in some communities because of an influx of production. This became a real issue that forced the County Board of Supervisors to respond. Their response came in the spring of 2015 as a vote to ban all commercial cultivation. The cannabis community responded. RCSC hatched out of community meetings hosted by the CAA (Cannabis Advocates Alliance) and petitioned to referendum before the ban became law. Our referendum was a success. The county had a couple of choices at this point to repeal the law or to put it before the county for a vote. They decided to repeal it and then a couple of Supervisors proposed the creation of the Cannabis Cultivation Choices Committee, aka C4. C4 was created as a conversation between community stake holders to propose recommendations to the Board of Supervisors for cannabis policy. Naturally Mystic Organics cofounder D’Angelo “Cricket” Roberto represents RCSC on this committee.
Naturally Mystic Organics., representing RCSC with Rep. Sam Farr (D-CA)
Santa Cruz County is on the leading edge of cannabis policy in California. C4 began holding meetings at the beginning of September 2015 and at this point the cannabis community wanted a clear pathway to legitimacy. Sometime after that our state legislature passed a bundle of bills that our governor signed into law, aka MMSRA (Medical Marijuana Safety & Regulation Act). This legislation helped to shape C4’s discussion from ‘what could be possible’ to ‘what is possible.’ The shared values of Santa Cruz are the core to the framework that C4 is building on. The recommendations that come forth will be to protect our environment, to protect the health and safety of our communities, and to assure an adequate supply of medicinal cannabis. It is important to note that these recommended regulations are being designed to nurture our current cannabis community and will restrict expansion so that we do so responsibly.
Santa Cruz County is the second smallest county in the state. We have a great portion of the population in the rural areas and much of our terrain is on slopes greater than 30%. We have a lot to consider here. In regards to any aspect of the emerging cannabis industry the question always is: How much and where? There are a lot of details. This is an industry that has struggled illegitimately for way too long and the side effects have finally forced society to realize the sensibility of a regulated system. We’re proud to be a part of history and helping to shape the future of cannabis in California.
Why did you join NCIA?
Naturally Mystic Organics joined NCIA to become a part of the foundation that helps to solidify the future of national cannabis policy. We’ve been very effective on the local level and are in entrenched on the state level. It’s been said that as California goes, so goes the nation. As we help to advance the conversation we hope to lend our voice to the choir at NCIA. To understand that we’re ushering in a new era is to preserve what the cannabis movement has taught us – empathy. Empathy leads to compassion, and as the cannabis industry unfolds we need to pass the values our history has taught us. This can be done through sustainable business models that encourage innovation and provide a real living wage. Society is in the middle of an overhaul and cannabis is in the center of it all. A healthy society shapes policies rather than policy shaping society. The cannabis policy landscape across the United States is transforming right before our eyes. The industry will revitalize the economy and create jobs. It will provide opportunities consistant with the promise of America. NCIA has positioned itself in the center of the conversation – right where we want to be.
Are you a member of NCIA interested in submitting a guest blog post? Please contact NCIA Communications and Projects Manager Bethany Moore for more information.
NCIA Councils: Focusing on the Issues That Mean Most to You
by Laurence Gration, Director of Development
There is no question all NCIA members and staff work for the overall good of the industry. With an industry as complex as ours, it can be more effective to segment and specialize in order to achieve the goals of both the many and of the few.
Just as the Government Relations team at NCIA concentrate their efforts on lobbying and advocacy in D.C., with the goal of attaining federal policy change for the industry, several member-driven councils have been formed to engage the expertise and passion of those particular individuals and organizations for the overall good of NCIA and the industry.
These NCIA Councils work to gain or retain benefits for members, or to make general changes for the public good. Councils work through advocacy, public campaigns, and even lobbying to make changes in our industry. There are a wide variety of interest groups representing a variety of constituencies.
As the name suggests, these are groups that focus their energy on a single defining issue. The members of the Council are often quite devoted to the issue, and motivated by personal experiences or participation in ongoing social movements. There are a growing number of single-issue interest groups in NCIA.
The first NCIA-Council formed was the Minority Business Council (NCIA-MBC), which has the interest at heart of driving inclusion. Moreover, we resolve to maintain a business-based community that is respectful of all persons despite differences in age, citizenship, disability, ethnicity, gender identity or expression, geographic origin, language, marital status, nationality, philosophical beliefs, race, religion, sexual orientation, military service, socioeconomic status, or previous incarceration (for unjust marijuana offenses).
The Infused Products Council (NCIA-IPC) is focusing in on the edible and topical area of the industry, looking at what can be learned from the existing businesses and regulations, to be shared across the country for the benefit of the consumer and the manufacturer. There is no limitation on the issues here, with the thought that as we progress and delve deeper into the needs of this sector, it may split into differing groups with even more specialized interests. Regulation is the initial key focus, but that will continue to be pushed within the Council to ensure the infused product sector is helping shape its destiny, rather than being driven by irregular regulations from jurisdiction to jurisdiction..
Equally irregular in the industry is the human resources aspect. Whether we talk training, education, recruitment, or pay and benefits, the field is wide open and the rules are, too. The Human Resource Council (NCIA-HRC) has set up shop with the interests of both employees and employers in mind.
Proposed goals of this council are as follows:
Establish best practices for HR, Talent Management, and Learning & Development in the cannabis industry
Develop a job board for NCIA members
Utilize SHRM and other HR/recruiting organizations to help define HR/recruiting expertise
Share best practices among members of the HR Council
Providing educational materials to help NCIA member businesses better understand how to be compliant with federal and state employment laws
Provide guidelines to NCIA members around recruiting and employment practices
We have also been in discussion with members that are interested in councils on cultivation, marketing and advertising, and retail.
Let us know of your interests, and we will make it happen.
For more information, please reach out to NCIA’s Director of Development, Laurence Gration.
Help Economists Determine the Cost of the Banking Crisis
Editor’s Note: From time to time, NCIA hears from researchers looking into an issue related to the cannabis industry. Recently, two Northwestern University economics Ph.D. candidates contacted us because they are studying the economic impact of the cannabis industry’s lack of banking access. In order to complete their research, they need real-world data from cannabis businesses like yours.
This blog post explains their research. We encourage our members to take part in their research, as the results can help support our case for an immediate banking solution. To get involved, contact them at bornstein@u.northwestern.edu or gaby@u.northwestern.edu.
A large number of banks in this country are not willing to work with businesses in the cannabis industry, even when those sales are legal under state law. This is causing major difficulties for thousands of business owners that are forced to operate on a cash-basis. But are they the only ones to suffer? Using straightforward economic analysis we ask who is losing due to these restrictions. The short answer is – almost everyone. Not only businesses are being hurt, but also consumers. In addition, such restrictions also decrease the revenues of the government.
While it is not difficult to argue, as we do below, why restricted access to banking services is bad for the economy, quantifying the different costs is a complicated task. It requires rich data on the costs incurred by businesses together with modern econometric techniques. In the next few months, we plan on collecting the required data to tackle such task. We believe that quantifying these costs is both of scientific interest and of that of the legal cannabis industry. If you are in the legal cannabis industry and would like to get more information about our study, we encourage you to contact us! Our contact information is listed at the top of the page.
In economics, when we want to analyze the effects of a government policy on market participants (consumers and producers) a first and simple approach is to look at the changes in consumer surplus (CS) and producer surplus (PS). These two measures represent what consumers and producers win by participating in the market.
FIGURE 1
As reference, Figure 1 shows what market equilibrium, CS and PS would be in the market for marijuana products if everyone had access to banking. If we think of the market demand function as representing how much consumers benefit from each transacted quantity, CS can be computed as the shadowed area in Figure 1 below the demand curve. Similarly, if we think of the market supply function as representing how much it costs to sellers to produce each transacted quantity, PS is the shadowed area in Figure 1 above the supply function.
FIGURE 2
What is the effect of banking restrictions on market equilibrium, CS and PS? Not having access to banking implies that producers have to take additional measures in order to be able to sell: install ATMs, hire security companies, allocate extra time to counting and moving cash, etc. This means that for each quantity transacted, the cost of doing so is higher than before. For the sake of simplicity, let’s think that these extra costs can be measured in dollars and correspond to a linear cost of $T per unit. In this case, such increase would shift the market supply curve as shown in Figure 2. Market equilibrium would feature a higher price and lower quantity.
We can decompose the effect on CS and PS as shown in Figure 3. There are two factors that reduce both CS and PS. First, consumers and producers share the burden of the extra cost generated by the lack of access to banking, this is represented by area X in Figure 3 that reduces both surpluses. Second, since the quantity transacted is now lower than before, there is an irrecoverable loss for both consumers and producers represented by area D in figure 3.
FIGURE 3
What is the difference between areas X and D? Well, area X is not entirely a loss to society as a whole: it includes payments to security companies, so it is a transfer from one sector to another, but it also includes the cost of the extra time needed to process cash payments, which could be better allocated to leisure or working in something else. Area D, on the other hand, is entirely a loss to society: if the market had access to banking, costs would be lower and quantity transacted would be greater and at a lower equilibrium price. New consumers would be incorporated into the market, and existing consumers would pay less.
Gideon Bornstein and Gabriela Cugat are two economics PhD candidates from Northwestern University in Evanston, Illinois, who are studying the costs incurred by businesses transacting only with cash.
Video Newsletter: Member Spotlight on Cresco Labs from Chicago
This month, NCIA’s video newsletter introduces you to one of our members based in Chicago.
Cresco Labs is a medical cannabis company licensed to develop and operate medical cannabis cultivation centers in Illinois.
James Beard Award-winning chef Mindy Segal recently joined the team to head up the edible product line at Cresco Labs. Meet Mindy, as well as Cresco CEO and founder Charles Bachtell, as they share a bit about their company partnership and how they got involved in the National Cannabis Industry Association.
You can meet the Cresco Labs team and more than 3,000 other cannabis industry leaders at the 2016 Cannabis Business Summit in Oakland, CA, June 20-22. Get your tickets today!
Want your voice heard in our nation’s capitol on issues affecting the cannabis industry? Join us for our 6th Annual NCIA Member Lobby Days in Washington, D.C., on May 12 & 13, 2016.
Editor’s Note: In January, Ean Seeb, who serves on the Board of Directors for NCIA and is co-founder of Denver Relief and Denver Relief Consulting, coordinated with NCIA’s Director of Government Relations Michael Correia to arrange personal meetings with congressional offices in Washington, D.C.
Ean Seeb speaks at NCIA’s Policy Symposium in 2015
In December, while planning for a January business trip to Washington, D.C., I realized that I should take the opportunity to use some downtime to lobby Capitol Hill offices on issues affecting the cannabis industry. I reached out to NCIA’s Executive Director Aaron Smith and Director of Government Relations Michael Correia and announced my intention. I was amazed at their responsiveness and support for my idea.
The whole planning process was quite easy. I let them know the date I was available and the focus of my trip and let the D.C. office coordinate logistics. Denver Relief Consulting has business interests in Hawaii and I wanted to focus on that state’s Congressional delegation. My goals were to update offices on medical marijuana implementation in Hawaii and ask these offices to co-sponsor The Small Business Tax Equity Act of 2015 (S. 987 & H.R. 1855), which amends Internal Revenue Code Section 280E to allow cannabis businesses in compliance with state law to take standard tax deductions and credits relating to business expenses.
The trip went very smoothly. I met up with Michael the evening before our meetings to discuss issues and logistics. Although I am well-versed on issues affecting our industry, it was really informative for me to sit down with him and discuss our focus, strategy, and talking points. We were joined by NCIA Member Tae Darnell, CEO of Sensi Media, whose background on cannabis reform in Hawaii goes back many years and was a great asset to our meetings.
We visited offices in both the Senate and House of Representatives, and each office was very informed about cannabis issues, was responsive to our concerns, and asked insightful questions. I remember back in 2013 when NCIA held its 3rd annual member lobby days. During those meetings, staffers would drop their jaws and say “You’re here to talk about what?” It was almost humorous because, back then, staffers were still in shock that cannabis issues were being brought to them. This time, one of our meetings lasted a full hour! The reception from congressional offices has evolved significantly over the past five years, and that can be attributed to the work NCIA has done on the ground.
The National Cannabis Industry Association’s 5th Annual Lobby Days in Washington, D.C.
Although our meetings were with Democratic offices, who tend to be supportive of our issues, they were still not co-sponsors of legislation that would solve our 280E tax problems. The offices really appreciated tying the issue to Hawaii and answering questions specifically related to the state and how 280E will negatively affect their constituents. Each of the offices will discuss co-sponsoring legislation in the future, and our D.C. office will continue working with them to gain their support.
I did my homework with information provided by NCIA through newsletters, packets, and the website. An hour’s worth of studying on the front end made for some really powerful and effective meetings. As an NCIA member, it was personally and professionally fulfilling to be able to leave the Capitol thinking, “Today, I made some good progress on our issues, and for our industry, through the work done with these folks.”
We love nothing more than getting our members in front of lawmakers. That’s where change happens. https://t.co/kcdYFf6oJT
I wholeheartedly encourage other NCIA members not only to go to NCIA’s 6th annual Member Lobby Days in May — but also to go to D.C. on your own. The NCIA Government Relations team will be there with you every step of the way.
As I was leaving, Michael said, “Please tell other members who happen to be traveling to D.C. that we are available for any NCIA member, at any time, who wants us to coordinate personal meetings with congressional offices.”
If you are interested in contacting NCIA’s Government Relations department to schedule meetings with Members of Congress in Washington, D.C., please email Government Relations Coordinator Michelle Rutter at michelle@thecannabisindustry for more information.
NCIA’s High-Impact Quarterly Cannabis Caucuses – Q1 Photos and Feedback
Last week we wrapped up the first quarter of our newly established event series, the Quarterly Cannabis Caucuses. Thanks so much to the nearly 500 members, speakers, supporters, and volunteers that engaged with NCIA’s federal advocacy work at caucuses in twelve cities across the country!
“Last night we attended the National Cannabis Industry Association meeting and were reminded about the crucial importance of advocacy in this election year. The continued reform of our drug laws and the nation’s growing access to cannabis is not a given.”– Kiva Confections
“I had the pleasure of attending both the Denver and Las Vegas NCIA caucuses and can’t begin to say enough good things. The content, location, and format were on point. I got to catch up with lots of colleagues, who were able to introduce me to prospective customers, and I was also able to meet several new entrants to the industry. I made amazing business connections and was able to set up 5 meetings for the following day.” – Amanda Ostrowitz, Co-Founder & Chief Strategy Officer, CannaReg§
“Last night at NCIA’s Quarterly Cannabis Caucus, I opened it up by expressing the importance of national advocacy. We all know the importance of local and state advocacy but the biggest threat to my business is 280E. This is the IRS tax code that does not allow dispensaries to write off ANY expenses. We just want to be treated like every other small business in America. This tax theft will happen every year until the tax code changes. Simply put, the IRS has robbed me and my patients. This is just one reason why federal law MUST CHANGE. Get involved, get active, and join the National Cannabis Industry Association.”– Aaron Justis, Buds & Roses
Looking for downloadable versions of the information we provided at the first round of Cannabis Caucuses? Check out our Cannabis Caucus Resources page.
The next events in the Quarterly Cannabis Caucus series will come to you in April. So check out the dates below, mark your calendar, and register online now by visiting the NCIA Events page!
Have any feedback from an event you attended? Want to suggest a particular topic you would like covered at our next Cannabis Caucus in your area? Fill out our short attendee survey to provide us with valuable feedback we’ll use to improve future events.
Interested in sponsoring an upcoming Cannabis Caucus in your area or a series of events across the country? Check out our Cannabis Caucus sponsorship guide which outlines pricing and benefits, as well as discounts on packages for our third annual Cannabis Business Summit & Expo taking place this year in Oakland, June 20-22.
See you at the next Caucus!
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According to Cody Stiffler, vice president of Government Affairs at BioTrackTHC, who was also present at the panel discussion, Congress has placed so many restrictions on the ability and powers of the DEA, that they can only reschedule cannabis to a Schedule II status. He believes there is almost no possible way that the DEA can de-schedule cannabis. The panel discussed Congress’s consideration of a waiver program for states with legalized cannabis in some form or another. “They [Congress] plan to give the U.S. Attorney General powers to offer waivers to state governments, exempting that state from federal law regarding cannabis, allowing banks and other institutions to take part in the industry without fear of federal backlash under the Controlled Substances Act,” says Stiffler. The waivers would have a duration of a number of years and a reporting and review process would follow the expiration of each waiver. “If the Attorney General decides that states are following the directives of the Cole Memo, then they will be able to continue, but if the data collected proves otherwise, those waivers would then be suspended or revoked,” adds Stiffler. It is important to note that the bill gives states the opportunity to correct any failures before those waivers are revoked.
ccording to Trumble, the SMART Enforcement Act would resolve many of the conflicts between federal law and state legalization measures. “It is the bridge that gets us from the broken system we have now to a future date when public opinion and Members’ positions may have shifted, while in the meantime fixing the problems people are experiencing on the ground,” says Trumble. She believes the bill provides for the protection of consumer safety through logical regulatory systems while eliminating federal prohibition of cannabis. “Every three years, a state will have to re-apply for the waiver and submit data showing that their regulations are working to keep Americans safe.” This would allow states to have the space they need to implement a sound regulatory framework.
Aaron G. Biros is the editor-in-chief of CannabisIndustryjournal.com, an online trade journal focused on regulatory compliance, quality and safety in the cannabis industry. He joined Innovative Publishing, LLC full-time after graduating from Tulane University. Graduating with a B.A. in Environmental Studies, his coursework involved environmental sustainability, conservation policy, design thinking in collaboration, social innovation & entrepreneurship, food production & health, and environmental & health risk assessments. He has two years of experience working on staff as an associate editor for FoodSafetyTech.com, writing a series of articles focused on the intersection of food safety and environmental sustainability. Aaron is now the editor and publisher of CannabisIndustryJournal.com, a B2B digital trade publication that seeks to educate the global cannabis industry on everything seed-to-sale in both recreational and medical markets. CannabisIndustryJournal.com covers news, business trends, technology, regulatory compliance and other important areas, aiding in the advancement of a well-informed and safe market. Cannabis Industry Journal became a member of NCIA in May 2016.
Hopefully by now you know the importance of building your brand’s presence on social media. However, there may be days when you ask yourself, “WTF am I doing?” 
Thanks in part to an over-saturation of weed porn and of course constantly 
As a successful entrepreneur, longtime marijuana advocate and medical grower, Alexa Divett understands the unique needs of the cannabis industry. 
When I was cooking, the Bay Area was home to a new sustainability movement that focused on local ingredients. Pioneering chefs like 
At a recent event, I spoke with a woman about her catering services, a service that pairs fine dining with smoked flower. When I asked about using cannabis as an ingredient, psychoactive or not, she said it was “too dangerous.”
Mountain Medicine recently became the first edibles company to co-brand with a mainstream (non-cannabis) food manufacturer. On my constant hunt for the best local ingredients, I discovered 
Jaime Lewis has more than nine years of experience managing the production of medical marijuana-infused products (MIP), as well as all facets of managing and operating a medical and recreational marijuana dispensary. A California Culinary Academy graduate, she’s worked in many highly acclaimed kitchens, including serving as the executive chef of a Michelin-rated three-star restaurant in San Francisco. She began creating medical marijuana edibles for HIV/AIDS patients in California in 2006 as part of a Compassion Co-op.
When asked to write for the NCIA blog, I first thought I’m not sure if anyone really wants to read my ramblings via an open blog format. So I thought about where most of my cannabis conversations start and end. More often than not, I am asked how I started out, what it has been like, and where I think the industry, Solstice, and myself are headed. Recently I celebrated 10 years cultivating the cannabis plant and I figured this format is as good as any to rehash (pun intended) the last decade of my life.
In the early days of 
As someone who’s been active in the cannabis movement for nearly two decades, and a member of the NCIA board of directors since 2014, I’m thrilled by the progress we’ve made in the last two years towards ending cannabis prohibition and creating a properly regulated economy around this most beneficial plant. But it’s not enough. My driving motivation, now as when I first became a member of this culture, remains helping to create a world where no adult faces punishment for cannabis, and the plant is safely and readily accessible to all who want or need it.
At District Growers, we recognize that patients depend on our products for their livelihood and well-being. Further, many of those patients are our employees, relatives, and friends. Because of this, we engage in a constant quest to offer the best quality products – bar none.
Jeanine Moss is the Founder of 
PET imaging is often used in cancer diagnostics, staging, and to determine the effects of treatment. We are one of the few labs in the world that use this technique for the investigation of exercise/physical activity related functions, such as the functional tests we are planning to perform. PET produces 3-dimensional images of the body to show where the sugar is being used. Using specialized computer software we can them compare the images of the groups and determine how regular marijuana usage affects the “normal” usage of sugar in people with MS.
Thorsten Rudroff, PhD, FACSM
Tinctures provide a great alternative to consuming cannabis, as opposed to smoking it. Our tinctures, formulated for consistency and reliability of potency, are a great way to monitor dosage. Providing patients an opportunity to connect with other plant medicine that they otherwise might never have, we pair cannabis with other amazing herbs to help guide an endocannabinoid system to the desired outcome. 
