As the seasons change, so does the amount of light that enters into your greenhouse. Summer months may offer an abundance of natural light; however, the longer nights of winter require supplemental lighting for growers to achieve the best yield possible from their crop. Some greenhouse facilities shut down during the winter months due to natural lighting restraints, but there are easy solutions that can mean more harvests and bigger profits for growers. The first step is to target a daily light interval (DLI) number for each facility and design the supplemental light accordingly. This ensures optimal light intensity and uniformity in the facility year-round.
On Site
Recently, Colorado marijuana cultivators have begun to move into more efficient greenhouse structures. With proper planning and execution, these growers are experiencing as much or more success as indoor gardeners. It does take proper planning to get through the short days of the winter, and owners are turning towards horticulture companies to help them succeed. Based on the sun’s position in the geographical region, high tech control systems with DLI sensors can be installed to measure when the natural light falls below a certain level and the supplemental light is needed to optimize growth.
For example, at urban-gro, once we know the facility’s DLI and obstructions within the greenhouse structure, we begin the planning process and consider technical factors for the layout of the lighting system. Ensuring optimal lighting layout for the grow facility is the top priority. Incorporating lights into the structure so they create minimal shadowing is critical; this ensures that the crops are getting the optimal amount of natural light when the sun is shining.
Today, most grow facilities use 1,000-watt DE HPS light fixture, which is the most efficient light source on the market for the plant canopy. Once the lighting system is installed, it is essential that the correct intensity is aligned with the crops’ growth stage, which ranges from veg to bloom. We schedule a gradual increase of light intensity so yield is maximized and never harmed.
End Result
With supplemental lighting, cultivators can guarantee the correct amount of lighting and environmental controls for the winter months to ensure yields and profits.
Shelly Peterson serves as Vice President of Sales for urban-gro for the last three years. Shelly manages the company’s sales force located across the country. Her passion for eco-friendly solutions and creating a sustainable environment ensures that the commercial cultivator is provided with a lighting plan that utilizes the least amount of equipment. Further, her skills learned in the commercial lighting industry have enabled her to work with regional electrical providers to maximize available utility rebates for urban-gro’s customers. Urban-gro is a Sustaining level member of NCIA since November 2014.
Member Spotlight: New Economy Consulting
NCIA’s member spotlight for the month of February takes us to Oregon, where we speak with Sam Chapman, co-founder of New Economy Consulting, a political and business consulting firm for the legal cannabis industry. Sam’s background includes consulting for statewide political campaigns, small business development and media relations, as well as direct involvement as a lobbyist for drug policy reform at the local, state, and federal levels. Having Sam in the room at an NCIA event always raises the dialogue with his insight and expertise, and we’re glad to have him as part of the NCIA community.
Cannabis Industry Sector:
Regulatory Compliance and Consulting
NCIA Member Since:
December 2013
Who does New Economy Consulting work with?
NEC provides a range of services and support to cannabis entrepreneurs, investors, and local governments. We specialize in drafting state license applications, writing and navigating local regulations, screening compliant real estate, regulatory compliance support, and political advocacy.
The New Economy Consulting Team
How do you serve your clients?
On behalf of our clients, NEC handles all aspects of licensure for retail, wholesale, production, and processing facilities. We provide clients with a holistic approach, encompassing services from locating and screening compliant property, to compliant buildout design and supervision, to local and state compliance inspection support.
What makes NEC unique?
NEC is unique in that our business consulting services are directly informed by our active political lobbying. Our researchers maintain a finger on the daily pulse of regulatory movement in the industry at both the state and local level. We strategically deploy our proprietary research in support of our client’s business ventures. An example of where NEC goes above and beyond for clients is in tracking the local regulations of over 90 Oregon counties and cities. This body of research allows NEC to quickly and confidently screen property and determine that property’s compliance with current and expected rules and regulations.
Sam Chapman, NEC co-founder
What has been NEC’s largest impact on the Oregon cannabis industry?
Before I co-founded NEC, I helped write and pass HB 3460, which legalized and regulated medical dispensaries in Oregon. NEC has successfully championed many pro-industry causes including raising more than $30,000 in support of Measure 91, legalizing the adult use of cannabis.
What should clients know before contacting NEC?
NEC is a boutique firm with a strong commitment to our clients. We choose our client and partner relationships with care. Our ideal client is well-capitalized, with business experience inside and out of the cannabis industry, has a clear vision of their project goals, and shares in our vision of creating and maintaining an industry to be proud of. We take great pride in contributing to the new marijuana economy while simultaneously supporting and shaping social justice reforms at the state, local, and federal level.
You work primarily in Oregon, which is an evolving landscape when it comes to marijuana policy and regulations. Can you briefly summarize the important regulatory frameworks that exist for business owners, and what changes are on the horizon for this market?
The Oregon Legislative Committee on Marijuana Legalization is considering many changes to the existing recreational program, including the potential removal of the residency requirements for recreational licenses. The committee has historically been hesitant to allow out-of-state majority ownership of Oregon marijuana businesses. However, many committee members have recently expressed that they now view residency requirements as a barrier for local business to raise much-needed capital.
While there is no guarantee that the current residency requirements will be eliminated, NEC has already begun to identify current and future market opportunities available to out-of-state business owners and investors.
Why did you join NCIA?
NEC enthusiastically joined NCIA as a member in 2013 and supports NCIA’s strategic lobbying at the federal level and especially their focus on our industry’s need for banking reform and 280E tax solutions. We strongly feel that the National Cannabis Industry Association is the tip of the spear when it comes to fighting for the federal reforms that affect all marijuana businesses on a daily basis.
Over the last two years, members from particular states have approached us here at NCIA with the idea of forming state-focused affiliates. While NCIA’s mission is dedicated to federal policy change and the support of a national industry that is coordinated, sustainable, and responsible, we’ve begun a journey with a few of these dedicated members looking to do the same at the state level. Many of our members are already familiar with our state affiliates in California and Illinois.
NCIA dedicates its policy work to issues at the federal level, which informs the playing field for all 50 states. However, individual state cannabis markets have their own unique needs and challenges. An NCIA state affiliate is tasked with pursuing the same priorities as NCIA’s federal mission – advocacy, education, and community – but with a zoomed-in focus on state legislation and regulations, city ordinances, and local networking and business development. The combination of NCIA and a state affiliate gives members a powerfully unified voice in influencing legislation that is fair towards our industry.
How does the state affiliate program work?
Each state affiliate is an independent entity from NCIA, which elects its own board of directors and has its own decision-making processes. The affiliates are non-profit organizations, and dues are collected from members to be used for state advocacy work.
Membership dues for the state affiliate are split between the state affiliate and NCIA, and members of the state affiliate are automatically added to the rosters of NCIA’s national membership, although many members still choose to maintain separate memberships with both the state affiliate and NCIA.
Our state affiliates currently exist in the two most populous states with active medical marijuana programs in place: California and Illinois. We checked in with the leadership of each affiliate to hear more about their progress and activities at the state level.
CCIA’s Executive Director and co-founder is Nate Bradley, who works closely with their official lobbyist, Amy Jenkins, to influence fair legislation and policies for the ever-evolving cannabis industry. CCIA’s membership currently sits at 132 members and growing.
“In 2015, CCIA hosted numerous well-attended membership networking and educational events throughout the state,” says Bradley. “We also added new staff to our ranks. In the fall we hired a Membership Coordinator. This in turn greatly increased our ability to reach out and provide services to our current members and build new membership at the same time.”
CCIA focuses on the state regulatory structure for California’s cannabis industry, working to influence regulations for the medical marijuana industry in the state legislature. CCIA has endorsed the Adult Use of Marijuana Act (AUMA), a full legalization state ballot initiative being proposed for 2016.
“More than any other legalization measures competing for the 2016 state ballot, AUMA represents the collective input of California’s lawful medical cannabis industry,” said CCIA President Sean Luse, who is also COO of the nation’s longest continually operating medical cannabis dispensary, Berkeley Patients Group.
So what are CCIA’s plans for the upcoming year?
“CCIA has a lot of big plans for 2016,” says Bradley. “Currently we are planning on bringing a new deputy director, increasing the amount of events we hold, developing our local government outreach program, and increasing the amount of membership committees we have.”
“We will also be heavily involved in any legislation clean-up, tracking the regulatory rule-writing process, and last but not least, making sure we are actively involved in influencing any cannabis ballot initiatives that may go before voters in November.”
CCIA’s 2015 victories are listed here, along with details of the requests that were successfully negotiated and included in the Medical Marijuana Regulation and Safety Act.
Kayvan Khalatbari, co-founder of Denver Relief, serves on the board of directors for ILCIA and offers insight into the progress of its formation over the last year. “With all the work the National Cannabis Industry Association is doing to progress policy, advocacy, and education on the federal level, it’s important to have that same influence on the state level,” says Khalatbari.
“We’re working hard to create a model that is in line with NCIA’s mission and tone, but also considerate of the cultural and political nuances present in Illinois. We’ve assembled a great group to form our initial board of directors, which includes cultivation and dispensary operators, attorneys, lobbyists and ancillary service providers… in a sense, most stakeholders in this new and exciting industry. We intend on bringing aboard a doctor and a patient representative as well in this new year to ensure all voices relevant to the success of this industry have a seat at the table.”
Kayvan Khalatbari, co-founder of Denver Relief and board member of ILCIA
“With our current 25 members we have some room to grow, but have no doubt that will happen as we become more active and visible in 2016. Between assisting in the development and implementation of the NCIA local Cannabis Caucuses here in Chicago, assembling our own quarterly educational symposiums, networking events, and a lobby day in April, as well as collaborating with other groups to add qualifying conditions in the medical cannabis program, we’re poised to make a big push in having a positive and responsible influence as this industry gets off the ground here.”
“The bridge to our national partners at NCIA can only benefit that push forward and help ensure that cannabis businesses in Illinois are represented at all levels of government for years to come.”
Looking to get involved in one of our state affiliates? Visit their websites:
by Michelle Rutter, Government Relations Coordinator
This year is arguably the most crucial yet for the burgeoning cannabis industry, especially as it relates to policy. Although NCIA primarily advocates for cannabis reform at the federal level, what happens in each individual state is vital to the stances Members of Congress take on our issues.
Members of Congress care deeply about issues that directly affect their specific state or district. It’s imperative that more states enact cannabis reform legislation so that more Members have a vested interest in protecting their constituents. While cannabis reform is sweeping the nation at an almost unprecedented rate, it takes time for politicians in Washington, D.C., to catch up with public opinion back home. If all of the federal lawmakers representing just the 15 states mentioned below were to vote positively on pro-cannabis legislation, it would add up to more than 180 Representatives and nearly 30 Senators.
Take a look below and see what’s coming up next in 2016. Remember that by becoming a member of NCIA, you are adding your voice to the coordinated and unified campaign at the federal level to allow cannabis businesses access to financial services, fix tax section 280E, and ultimately end federal cannabis prohibition.
The United States of Cannabis
Arizona activists remain ahead of schedule and have nearly gathered the 150,000 signatures needed to put the state’s Campaign to Regulate Marijuana Like Alcohol initiative on the November 2016 ballot. (The campaign ultimately aims to collect 230,000 in order to insure against signature drop-off.) It’s estimated that Arizona’s adult-use market could be worth up to $480 million.
With a multi-billion-dollar cannabis industry in California alone, passing an adult-use legalization initiative in the state is vital to ending federal prohibition. The most prominent full retail initiative gathering signatures for the November 2016 election is the Adult Use of Marijuana Act, which is backed by billionaire Sean Parker and the Marijuana Policy Project.
Legalize Maine and the Marijuana Policy Project have joined forces to legalize adult-use cannabis in 2016. Legalize Maine has already collected 80,000 signatures. Only 61,000 signatures are necessary to place the measure on a statewide ballot, but the organization’s goal is 95,000, to insure against drop-off. The deadline to submit signatures is February 1st.
Last August, a pair of cannabis advocacy groups separately filed paperwork to get adult-use legalization on the 2016 ballot in Massachusetts. The state recently confirmed that a measure to legalize recreational cannabis next year has enough valid signatures to force the legislature to consider the measure. If the legislature decides to pass, then the campaign will have to collect another 10,792 signatures to formally make the November ballot.
There’s no question that adult-use legalization will be on the ballot this year in Nevada. Initiative Petition 1, which would tax and regulate marijuana similarly to alcohol, has been certified for the 2016 ballot. Backers had previously collected nearly 200,000 signatures to either force legislators to enact their initiative or put it on the ballot. When state lawmakers abstained from voting on the issue, the measure was automatically forwarded to this year’s ballot for a popular vote.
In Florida, the group United for Care received clearance from the state Supreme Court for a 2016 ballot measure that would legalize medical marijuana. The group nearly succeeded in legalizing medical marijuana in 2014, garnering 58% of the vote but falling barely short of the state’s constitutionally mandated 60% margin needed to pass,
The nation’s capital continues to debate cannabis. In December’s federal budget bill, the taxation and regulation of marijuana in Washington, D.C., was blocked by Congress again, though possessing and gifting cannabis remains legal in the city.
This month, Hawaii will begin accepting applications for medical cannabis businesses. The bill signed into law last summer opens the door for up to 16 dispensaries on the islands.
It was recently announced that Illinois saw approximately $1.7 million in medical cannabis sales during November and December of 2015. There are already petitions being circulated in the state that would expand the law’s qualifying conditions.
Maryland will award cannabis cultivation, processing, and dispensary licenses this summer. Industry advocates were pleased with the amount of interest the state’s program garnered: more than 1,000 applications were submitted.
Officials in Michigan have approved language for three different adult-use cannabis legalization initiatives for the 2016 ballot. In order to have the best chance of passing, it’s important for these groups to coalesce behind one initiative.
At the end of 2015, New Hampshire began issuing medical marijuana cards to qualifying patients. It’s expected that the state will open medical dispensaries in 2016.
After a long and arduous journey, New York’s medical cannabis program became operational this month. The cannabis industry expects the program and the law’s qualifying conditions to expand this year.
In the first week of 2016, Oregon began accepting adult-use cannabis business license applications. The state has no limit on how many licenses they will decide to award.
Vermont may become the first state to legalize adult-use cannabis through the legislative process in 2016. The proposed bill would allow for up to 86 storefronts and five different business license types.
Bonus: Election 2016 – Yes, We Canna
As we all know, a new president will be elected this November, and with that a new administration will assume power next January. It is very crucial that Congress pass more pro-cannabis legislation before then.
It’s probable that Attorney General Loretta Lynch will be replaced in 2016 or early 2017. This is important because it is the Department of Justice that enforces and prosecutes federal marijuana laws.
Another possibility for 2016 is that the acting head of the Drug Enforcement Administration, Chuck Rosenberg, could be replaced as well. Rosenberg is notorious for his gaffe last year when he called marijuana “probably” less dangerous than heroin.
On New Year’s Eve, officials from the Substance Abuse and Mental Health Services Administration posted a notice on the Federal Register that calls for a report “presenting the state of the science on substance use, addiction and health” to be released in 2016. Industry advocates are hopeful that this report could be the first sign of re- or de-scheduling cannabis from the Controlled Substances Act.
During 2016, NCIA will continue working with D.C.-based public affairs firms Heather Podesta + Partners, and Jochum Shore & Trossevin PC to magnify our efforts to address the industry’s top federal priorities: access to basic banking services and fair federal taxation.
In addition to NCIA’s lobbying and advocacy efforts, NCIA exists to connect and educate our members on all facets of the cannabis industry. Our industry supports tens of thousands of jobs, tens of millions in tax revenue, and billions in economic activity in the United States.Our core mission is to ensure that our members are treated like businesses in any other American industry. Join NCIA today to get involved and be a part of the cannabis revolution!
Video Newsletter: The Fourth Corner Credit Union Ruling and What You Can Do
We’re back with NCIA’s first video newsletter of 2016!
Earlier this month, a federal judge dismissed a lawsuit filed against the Federal Reserve by the Fourth Corner Credit Union, which had planned to provide banking services to the cannabis industry, but was denied a master account by the Fed.
Watch this month’s video to find out how the ruling affects NCIA’s work to pass a banking solution in Congress and how you can help by pressuring Members of Congress to pass the Marijuana Business Access to Banking Act.
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.
Announcing NCIA’s January – June 2016 Events Calendar
Do you have questions regarding any upcoming events in your area or others across the country? Reach out to events@thecannabisindustry.org any time with your questions, comments, or concerns.
Interested in sponsoring one or a series of events in a particular region throughout the year in order to gain valuable exposure for your company to our nationwide network of established business owners? Please contact Brian Gilbert at brian@thecannabisindustry.org for more information on series rates and associated discounts for packages.
Interested in speaking at the upcoming Cannabis Business Summit? Please contact brooke@thecannabisindustry.org for more information on remaining opportunities.
Help NCIA’s Inclusion Initiative Expand in 2016
Congratulations and thank you for a great 2015.
NCIA’s Inclusion Initiative, headed up by our Minority Business Council (NCIA-MBC), had a good start this year, and we were able to make a difference for dozens of people in the cannabis industry or working to enter the industry. Considering the Council had its first formal meeting only seven months ago, we have achieved a great deal in raising awareness and beginning to take on the mandate of creating a more inclusive industry.
We also have a good start to 2016. We’ve added an Inclusion Initiative contribution option to the registration forms for the 2016 Cannabis Business Summit and have already begun building up the scholarship fund.
But we can never rest on our laurels, and the expectations of the industry are great. There is talk about what else we can do to help promote inclusion in this industry, and now is the time to start the discussion.
The next meeting of the NCIA-MBC will be a planning meeting at 2pm MT on Tuesday, January 19th. To join the meeting, simply call in to the conference call line at (303) 416-5167. (No PIN is necessary.)
With this meeting, we’ll seek to get a little more formal in our efforts. The goal is to establish a representative committee and meeting structure to ensure we are at the forward edge of our work and that what needs to be done is getting done.
In an effort to continue the development of this initiative and grow the opportunities for those who face barriers within the industry, we are putting forward the notion of creating a more formal structure – guiding the development of the NCIA Inclusion Initiative by expanding the Minority Business Council and establishing a less formal advisory committee as well.
Therefore, we seek your input into two areas:
Please review the proposed rules for serving on the NCIA Minority Business Council. Then let us know if you would like to serve on the Council under these rules or would like to stay or become involved with the Inclusion Initiative through the less formal advisory committee.
Proposed Requirements for NCIA Minority Business Council (MBC) Members
Council members must be employees of NCIA member-businesses
Council chair must be a member of the NCIA Board of Directors and thus report to and from MBC
Chair and Vice chair are elected by the Council members
Secretary is appointed from NCIA staff
Only one person from any given member-business can serve on the Council (but there is no limit to how many people from a business can serve on the advisory committee)
Council members must be able to attend at least 3 in-person meetings and 3 telephone meetings during a calendar year
Council members must commit to a minimum financial contribution to MBC activities (examples: scholarship pledges, in-kind donations, etc.), exact amount to be determined by the Council at an affordable level to all
We believe the optimal number of people on the Council would be about 12, so we are looking for 12 strong volunteers who have a point-of-view and are eager to contribute on these critical issues.
If you own or are employed at an NCIA member-business, please feel free to nominate yourself for the Council. We also welcome your recommendations for others for us to follow through on and ensure we have the best recruits we can get.
Even if you are not part of an NCIA member-business, we invite you to join the advisory committee for NCIA’s Inclusion Initiative. On this advisory committee, you will be invited to every meeting and kept fully informed of action and activities, as well as have direct input into the Council and the Inclusion Initiative.
Please let us know of your involvement and interest before January 11th, so we can schedule a meeting and put structure in place for fuller development.
And as we head into 2016, we invite you to suggest and share resources for the Inclusion Initiative page on NCIA’s website, so that we can build it into a helpful presence for those looking for industry support and knowledge.
Thank you for your interest in the Minority Business Council and NCIA’s Inclusion Initiative. We look forward to expanding and building upon the success of 2015!
NCIA’s Minority Business Council: Robert Van Roo, Palm Springs Safe Access Joshua Littlejohn, Accannadations LLC Dr. Lakisha Jenkins, Kiona T. Jenkins Foundation for Natural Health Luke Ramirez, Walking Raven LLC
Appropriations Pros and Cons in 2015 for Cannabis
by Michelle Rutter, Government Relations Coordinator
Every year, Congress must pass appropriations legislation to fund the government 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.
This year, two riders were included in the budget bill pertaining to cannabis. The first, known as the Rohrabacher-Farr 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. When debated on the House floor this summer, the vote count increased from 219-189 in 2014 to 242-186 this year, with 67 Republicans voting ‘Yes.’ The Rohrabacher-Farr language was included in the final budget bill for the second year in a row, which is a promising sign of progress in Washington, D.C.
A rider known as the Bonamici-Massie amendment, which prevents the DEA from intervening with state-sanctioned and legal hemp, was also included in the final budget package. This section blocks federal money from being used to prevent states from allowing the use, distribution, possession, or cultivation of industrial hemp. It’s important to note that although this progress is promising, the DEA has ignored appropriations language pertaining to cannabis in years prior.
There were other commonsense policy reforms related to cannabis, which were proposed and added to earlier versions of the budget package, but which unfortunately did not make it into the final bill. A crucial example was a provision which would have prevented the Treasury Department from punishing banks that work with legitimate marijuana-related businesses. Another would have allowed Veterans Affairs (VA) doctors to recommend medical cannabis to veterans without fear of retaliation or punishment, and would have also prevented the VA from denying services to any veteran who is a medical marijuana patient.
An additional disappointment in the final budget package was the continuation of language from the previous year which blocks the adult-use sale and purchase of cannabis in Washington, D.C.
It’s important to remember that these appropriations amendments only protect states’ medical cannabis and hemp laws for the upcoming fiscal year and have to be re-included and voted on every year. While this progress is encouraging, it falls short of achieving our goals. NCIA will continue lobbying on behalf of the cannabis industry to achieve the substantive and lasting reforms that our businesses deserve.
Member Spotlight: Cannabis Basics
To kick off 2016, we speak with Ah Warner of Cannabis Basics, whose company saw a landmark year in cannabis policies in her state of Washington. She also recently won ‘Best Topical Brand’ at the 2015 Dope Industry Awards in Washington. Many in the industry and movement look up to her involvement in both her community and her direct activism, setting a tone for others looking to create a successful and responsible business in the cannabis industry.
Cannabis Industry Sector:
Cannabis-Infused Products
NCIA Member Since:
February 2013
How do you uniquely serve the cannabis industry?
We are dedicated to true whole genus cannabis topical therapy.
Cannabis Creations, now Cannabis Basics, was founded in 1995. Back in those days, there were many hemp body care manufacturers working with hempseed oil because of its amazing nutritive value for skin care. Today there are a host of cannabis topical producers that focus on cannabinoids from the plant and also CBD-derivatives from hemp that speak to our CB2 receptors. Cannabis Basics is this rare and beautiful place where the essential fatty acids and anti-inflammatory properties of hempseed oil and the multiple cannabinoids and terpenoids from cannabis are blended together with an arsenal of other botanical constituents to provide natural localized therapy for symptoms brought on by a myriad of conditions.
Why should customers seeking cannabis-infused topical products use Cannabis Basics?
We never use animal products, man-made fragrance oils, or chemical preservatives. We buy locally and organically whenever possible. Supporting Cannabis Basics is also activism because it enables us to continue to work for the betterment of our industry and community as a whole.
On August 25th, 2015, the USPTO awarded Cannabis Basics the first federal registration to a brand/logo displaying both the leaf and the word “cannabis” representing an actual product that contains cannabis, not a service or institution. Cannabis Basics has two distinct lines, one that contains cannabis (industrial hempseed oil) that can be sold anywhere in the world, and the other that contains cannabis (I.H. and multiple cannabinoids including THC) sold only in the state of Washington.
It is important to note that the USPTO did not award federal registration based on my cannabinoid line of products. Federal protection was awarded for my cannabis industrial hemp products however, and due to same branding, will by default provide protection to the entire Cannabis Basics family of products.
What started out as stand-alone sister bills with bipartisan support actually passed on June 30th as Section 7 of HB 2136, an I-502 tax fixer bill, and was signed into law by Governor Enslee. This law was enacted on July 1st, 2015, and is the first of its kind in the country. The CHABA law defines Cannabis Health and Beauty Aids for the first time in our legal lexicon as “cannabis products for topical use only, non-intoxicating and contains less than .3% THC.” It defines these products as not marijuana and allows for them to be sold to any mainstream retailer in the state of Washington, i.e., any health food stores, salons, or spas. The much larger significance of this new law is that it is the first removal of anything cannabis from the Washington State Controlled Substances Act.
I would be remiss if I did not take this platform to thank all the legislators who played a part in moving CHABA through Olympia, especially Washington State’s Cannabis Champion Senator Jeanne Kohl-Welles and my co-author/policy advisor Kari Boiter. The state of Washington and anyone who uses or produces CHABA are forever in your debt.
Why did you join NCIA?
Our goal at Cannabis Basics is to make Cannabis Health and Beauty Aids accessible to all health-conscious consumers everywhere in the U.S. and to be able to export to any country that is interested in importing these types of products. Being a member of NCIA has given me access to the movers, shakers, and policy-makers so that I may work efficiently at this ultimate goal.
2015 has been a great year of growth and learning within our industry. Our members are invited to submit their guest blog posts throughout the year to share their wisdom and insight with our membership and followers. Today we look back at the year in Guest Posts. Did you miss any the first time around? Check them out here.
NCIA Staff Picks:
The National Cannabis Industry Association’s 5th Annual Lobby Days in Washington, D.C.
Are you interested in submitting a guest blog post for NCIA’s website? Please reach out to Bethany Moore by emailing bethany@thecannabisindustry.org to propose your topic.
Announcing the Quarterly Cannabis Caucus Event Series
Wow, where does the time go? The end of 2015 is in sight and 2016 is fast approaching! As per usual, these past 12 months made for another landmark year for our industry where we saw enormous growth across all sectors, as well as witnessed notable legislative victories in the House and the historic first-time introduction of cannabis-specific legislation in the Senate. We continue to see increased activity and support for our issues in D.C., due in no small part to our increasingly prominent voice within the halls of Congress, spearheaded by the work NCIA is doing with your support.
Now, we are excited to announce that starting in January, we’ll be debuting a new nationwide event series! NCIA’s Quarterly Cannabis Caucuses will be held in the cannabis industry’s 12 most active regions, on Tuesdays and Thursdays in the first month of each new quarter. The exact date will vary depending on your region, and you can view the full list of dates and locations here. The schedule for the first quarter will be:
Oregon Cannabis Caucus – Portland, OR – Tuesday, January 12 – REGISTER NOW
Mid-Atlantic Cannabis Caucus – Washington, D.C. – Tuesday, January 12 – REGISTER NOW
Northeast Cannabis Caucus – Boston, MA – Thursday, January 14 – REGISTER NOW
FloridaCannabis Caucus – Orlando, FL – Thursday, January 14 – REGISTER NOW
MidwestCannabis Caucus – Chicago, IL – Tuesday, January 19 – REGISTER NOW
Tri-StateCannabis Caucus – New York, NY – Tuesday, January 19 – REGISTER NOW
ColoradoCannabis Caucus – Denver, CO – Thursday, January 21 – REGISTER NOW
SouthwestCannabis Caucus – Phoenix, AZ – Thursday, January 21 – REGISTER NOW
NevadaCannabis Caucus – Las Vegas, NV – Tuesday, January 26 – REGISTER NOW
So. California CannabisCaucus – Los Angeles, CA – Tuesday, January 26 – REGISTER NOW
No. CaliforniaCannabis Caucus – San Francisco, CA – Thursday, January 28 – REGISTER NOW
WashingtonCannabis Caucus – Seattle, WA – Thursday, January 28 – REGISTER NOW
As NCIA heads into our sixth year of operation, we’re committed to growing and evolving our work to provide increased value to our members and reflect our unique position with the industry. The Quarterly Cannabis Caucuses have been designed to provide the quality and consistent programming you’ve come to expect from NCIA events, while also preparing you and your business to contribute to our legislative efforts on the national level.
You and your team will leave each Cannabis Caucus equipped with the tools to affect positive change on cannabis issues while making meaningful connections with vested industry players. Each Caucus will be free of charge for current NCIA members and include an in-depth federal policy update from senior NCIA staff or staff from a district congressional office, a comprehensive state and local policy update from a local elected official or a member of NCIA, an informational packet filled with detailed legislative analysis and recent federal policy developments, and an organizational update so you can keep up to date with what NCIA is doing for you. All of this will be offered as well as the opportunity to network with the leaders in the cannabis industry.
The Caucus also serves as an opportunity for our members to share their ideas and concerns with NCIA, which is committed to serving the industry in the best way possible
As the only national trade association representing cannabis business owners on Capitol Hill, we are your voice within the halls of Congress on a daily basis. We take this responsibilityseriously and by holding these quarterly member meetings, we hope you’ll take advantage of this opportunity to make your own voice heard within our ranks as well.
Every day it seems a new event is popping up, vying for your time, money, and focus. We here at NCIA know that our members’ time is one of their most valued assets, so we’ve created this event series to pack maximum information, value, and member benefit into a regular quarterly meet-up.
Do you have questions regarding the upcoming Quarterly Cannabis Caucus in your area or others across the country? Reach out to events@thecannabisindustry.org any time with your questions, comments, or concerns.
Interested in sponsoring one or a series of events in a particular region throughout the year in order to gain valuable exposure for your company to our nationwide network of established business owners? Please contact Brian Gilbert at brian@thecannabisindustry.org for more information on series rates and associated discounts for packages including NCIA’s Cannabis Business Summit 2016, taking place in Oakland, CA, June 20-22.
Video Newsletter: Why NCIA’s Cannabis Business Summit is 2016’s Can’t-Miss Event
Then purchase your Members-Only Early Bird tickets by December 18 to save $380 off the regular price!
Not yet an NCIA member? Add a one-year membership to your ticket purchase to get the early bird discount AND $50 off your member dues!
Register today and we’ll see you in Oakland, June 20-22, 2016!
Timeline: 2015 Legislative Year in Review
by Michelle Rutter, Government Relations Coordinator
As we look forward to 2016, there’s much on the horizon for the cannabis industry. NCIA remains dedicated in its effort to pass banking and tax legislation through Congress that would provide immediate relief to cannabis-related businesses all over the country.
In addition to the federal advocacy that NCIA engages in every day, there will be at least five states seeking to legalize and regulate adult-use cannabis via the ballot initiative process: Arizona, California, Maine, Massachusetts, and Nevada. It’s also likely that Florida will have another ballot initiative relating to medical cannabis, and it’s possible that other states will move forward with cannabis reform through ballot initiatives or legislative processes. What happens over the next twelve months will be crucial in shaping the future of the legitimate and responsible cannabis industry.
While 2015 was a milestone year for cannabis reform, that same momentum will be necessary in order to continue moving the conversation forward with Congress in Washington, D.C. The Rohrabacher-Farr medical cannabis amendment earned more that 60 Republicans votes. For the first time ever, there are multiple pro-cannabis bills that have been introduced in the U.S. Senate. Continued progress is vital in garnering more national support for cannabis reform, so make sure your interests are heard through national advocacy, education, and community with NCIA.
The timeline below lays out some of the highlights from a busy year in cannabis industry advocacy. We look forward to more exciting milestones with your help in 2016!
*Click on the “Full Screen” button (with the four arrows) at the bottom of the image to expand its size.
Member Spotlight: Hypur
For December’s member spotlight, we zoom in on Arizona-based Hypur, an NCIA member business who is committed to “innovation with purpose” by providing solutions for one of our industry’s major hurdles: financial compliance. Navigating the various layers of regulations with mastery is an important aspect of being transparent, legitimate, and compliant, and is an essential cornerstone of NCIA’s mission and values.
Our solution is a technology platform that provides unprecedented transparency and accountability for banks and regulators, and legitimacy, safety, and convenience for businesses and their customers. With many banks and credit unions wanting to bank these booming industries, and government bodies wanting banking services available to them, we knew the demand for our platform would be robust. Hypur represents the future of commerce for cash-intensive businesses and high-risk challenging industries. Hypur’s technology provides financial institutions with a state-of-the-art compliance platform that enables them to profitably bank these businesses – revolutionizing the businesses and the communities they operate in.
What kind of banking and payment solutions does Hypur provide?
The Hypur payment network is available to clients of our financial institutions. It gives retail locations the ability to accept cashless payments from their consumers via their mobile devices. Additionally, businesses that have accounts at Hypur partner financial institutions have the ability to conduct business-to-business transfers electronically without cash.
Can you give us some insight into the unique regulations that affect cannabis business owners in your sector?
Hypur serves financial institutions, which must comply with FinCEN guidance and all BSA/AML laws that govern their institutions. They must also comply with regulatory expectations from the FDIC (Federal Deposit Insurance Corporation), OCC (Office of the Comptroller of the Currency), or NCUA (National Credit Union Association).
Why did you join NCIA?
Hypur always seeks to support leading organizations that intersect with industries of interest. We have taken note of the many important ways that NCIA is advocating for fairness, education, and awareness for the legal cannabis market, and are delighted to be a part of the NCIA community.
Happy Thanksgiving! Bountiful Benefits for NCIA Members
by Laurence Gration, Director of Development
As we head into this weekend of giving thanks, we here at NCIA are grateful for five years of advocacy, education, and community with our members. With a diverse set of services and an increasing influence on industry, legislators, and regulators across the nation, the cornerstone of our success together is firmly in place.
As the cannabis industry’s only non-profit trade association with full-time professional lobbyists working for your interests in Washington, D.C., NCIA is focused on advocacy for your business. With the strength in numbers that our nearly 1,000 member-businesses provide, we have become an influential force on Capitol Hill, with direct access to legislators and regulators.
No other business organization has done (and is doing) more for 280E reform or to fix the dangerous banking crisis than NCIA.
As a unifying voice in the industry, we are also focused on educational programming and community-building, bringing together advocates, business leaders, and policy makers to shape the industry in positive ways. NCIA also leads a Diversity and Inclusion committee, representing the interests of all under-represented groups within the industry.
But in addition to our core mission, NCIA is doing so much more for its members and the industry:
Keeping you informed: sign up for our newsletter, get video updates, and read the NCIA blog
On top of all that, NCIA members have access to a large and growing list of Member-to-Member Discounts, covering virtually every aspect of your business needs, including:
Accounting
Advertising & Marketing
Analytical Lab Testing
Infused Products
Cultivation Supply
HR & Recruiting
Software Technology
Insurance
Legal Services
Packaging
Photography
Real Estate Advising
Security
Training and Education
Travel
Wellness Products
With these discounts alone, many of our members find their NCIA membership pays for itself.
Finally, one more way we say “thanks” to our members is with gifts that let you show your pride in being part of our fast-growing community. Member pins, decals for your business window, and member certificates tell the world that you’ve invested in the long-term future of our industry.
At this time when we count our blessings, we’re grateful to you, and we hope you’ll enjoy the bounty of benefits your NCIA membership brings. With our influence in D.C. on the rise, and new programs and benefits being added all the time, it’s never been a better time to be a part of the NCIA community.
Not yet an NCIA member? Invest in your business and the future of your industry – join today!
Video Newsletter: 5 Years of Advocacy, Education, and Community
Even if you couldn’t attend NCIA’s 5th Anniversary Banquet held in Las Vegas on November 11th, you can still reflect on five years of industry advocacy, education, and community with a few of our founding members in this video presentation.
We are proud of the nearly 1,000 member-businesses that have come together as the unified voice of the cannabis industry.
Not yet a member of NCIA? It’s never too late to get involved in paving a prosperous future for the cannabis industry — join today!
Special Thanks to: Christie Lunsford, Jay and Diane Czarkowski, Brian Vicente, Ean Seeb, Erich Pearson, Étienne Fontán, Julianna Carella, Jill Lamoureux, Rob Kampia, and Steve DeAngelo.
Guest Post: NCIA Board Chair Reflects on the Past Five Years
by Jaime Lewis, Mountain Medicine
Dear cannabis colleagues,
I don’t know about you, but I cannot believe that it has been five years since Aaron Smith approached me with the idea of building a national trade association for the cannabis industry. Now, five years later, the National Cannabis Industry Association has become just that for us, and then some.
I’ve been witness to some incredible growth within the cannabis industry since NCIA was established in 2010. With the passage of full adult-use measures in four states and the continual growth of support within the halls of Congress, we have effectively been noticed as a legitimate industry that is gaining respect and recognition across the country.
It’s an amazing honor to have been involved from the very beginning – from attending the very first NCIA Lobby Day in Washington, D.C., to now serving as the chair of NCIA’s Board of Directors. All of us cannabis business leaders should be so proud to have effectively changed the conversation around our work, proving that we are a responsible and politically engaged industry. And we certainly have NCIA to thank for building a community of respected business owners and for fighting for this industry on the federal level for these past five years.
I invite you to come celebrate with me, share some laughs, and reflect on the last half-decade at Looking Back, Moving Forward – NCIA’s 5th Anniversary Celebration. Taking place on November 11 at the LiNQ Hotel & Casino in Las Vegas, the night will be be an unforgettable celebration of where we’ve been and what we have to look forward to in the years ahead. I am excited to celebrate with you! Sincerely, Jaime Lewis Owner, Mountain Medicine Chair, National Cannabis Industry Association Board of Directors
Jaime Lewis, Owner of Mountain Medicine & Chair of NCIA’s Board of Directors
Jaime Lewis is the founder and owner of Mountain Medicine, a leading marijuana provider in Colorado renowned for its quality products, patient services, community engagement, and philanthropic efforts.
Since 2010, she has applied industry best practices to advance the company’s mission to provide safe and legal access to marijuana infused products and improves patient quality of life through the therapeutic benefits of marijuana. Jaime’s business management and entrepreneurial skills have contributed to Mountain Medicine success. In addition she has experience in retail and Medical marijuana dispensary in Denver, with a background in culinary arts, Jaime’s career trajectory into the medical marijuana industry began by creating compassion edibles for HIV/AIDs patients in San Francisco. In 2009, she moved to Colorado and founded Mountain Medicine, a marijuana-infused product manufacturer. She continues to oversee product development, quality control, and product consistency – the main tenants of the philosophy behind the company she founded.
Jaime is founder and Chair of the Cannabis Business Alliance (CBA), which serves as the policy voice for the cannabis industry in Colorado. CBA reflects her priority to develop sound policies and respect for the industry as it grows. She is a current board member of the National Cannabis Industry Association and has been active in campaigns to advance the interest of the industry. As a business woman and industry advocate, her participation in these organizations reflects her passion and commitment to support responsible industry policies, promote patient access, and enhance the emerging industry’s role in the economy.
Member Spotlight: Tahoe Wellness Cooperative
For this November member spotlight, we catch up with Cody Bass of Tahoe Wellness Cooperative, a patient-run medical cannabis cooperative in South Lake Tahoe, California. Cody talks with us here about his cooperative’s mission and values, his experience being raided earlier this year, and the new legislation in California. Cody currently serves on NCIA’s board of directors.
Cannabis Industry Sector:
Medical Cannabis Providers
NCIA Member Since:
2012
How do you uniquely serve the cannabis industry?
My life’s work is to free the cannabis plant. The perspective from working directly with the plant for nearly two decades has allowed me the vision to create a model that is unique. One thing that is unique about us is we use glass packaging at TWC for almost everything, which has created close to zero waste through our jar reusing program. We take a one dollar deposit on the jar when you purchase medicine and when you bring your jar back, you get your dollar deposit back. We installed a commercial dishwashing station and have virtually eliminated waste from our sales. This is one of many conscious standards and ethics you will find throughout Tahoe Wellness Cooperative.
Tahoe Wellness Cooperative
Why should patients seeking medical cannabis go to Tahoe Wellness Cooperative?
To get the highest quality, pure cannabis in California, in a safe space from a knowledgeable and compassionate crew. Our staff is very knowledgeable about cannabis and will ensure a patient has the understanding to choose the medicine they need. Your contribution is supporting a cooperative that is providing a variety of services to our entire community free-of-charge at our Community Center, which is open to all. TWC’s compassion program provides cannabis for terminally-ill patients at no cost. There is also a safe space for our patients to medicate, as well as a hash bar where we teach our patients how to make solvent-free hash.
Earlier this year in the summer, your cooperative in California was raided by local authorities. Can you tell us more about that experience, and how you’ve moved forward?
On June 1st, we experienced a SWAT-style raid on TWC from the El Dorado County Sheriff’s office. This came as a major surprise to all of our members and broader community. Even our local police department was shocked and unaware. We are licensed by the City of South Lake Tahoe and had gone through the renewal process with the city, with which we have worked cooperatively, hand-in-hand over the past seven years. We work and communicate well together. We operate under a local ordinance which has been effectively removing licensed operators that were operating illegally. When our local police department produced evidence that showed two operators were doing illegal things, both of their licenses were revoked and they were closed. So why would the Sheriff’s office raid a city-licensed dispensary that was current with all tax filings and the local ordinance’s current requirements? At this point we still don’t have all the details, and we are pursuing the District Attorney and Sheriff’s office to get our property and damages for their clearly unlawful action. However, I don’t have any other info at this time because I would only be speculating – better to wait for the facts.
As many know, I have been very opposed to the legislation signed by Governor Jerry Brown two weeks ago. I am not against regulations; in fact, Tahoe Wellness Cooperative has been operating under a local ordinance for over four years and paid all the required taxes. What I am so opposed to is what I see as a licensing scheme because of the distribution license. Having a license is great for producing and dispensing cannabis, but not for the distribution. Here in California, we produce half of the cannabis that America currently consumes. If we don’t create markets that are approachable by the buyer and the farmer, we are only further driving cannabis underground. In California, we must re-create the open market with an initiative in 2016 that allows for farmers’ markets, auction houses, or cooperatives, where distributors could exist, but not be the only choice. The distributor-only legislation is what would destroy the open market of cannabis, the biggest cottage industry that could ever hit America.
Why did you join NCIA?
NCIA was the first organized effort to step outside of the pure advocacy related to cannabis and form a membership of responsible cannabis pioneers that could see the need to change issues on a national level that are crucial to the evolution of cannabis. So really I joined NCIA for a unified effort. Since that time it has been remarkable to witness how many people NCIA has educated on pure cannabis knowledge, best practices, and compliance.
The 5 Critical Pieces of Cannabis Legislation You Need to Know About
by Michelle Rutter, Government Relations Coordinator
As the cannabis industry has continued to thrive and expand, the number of bills in Congress dealing with the issue has done the same. Between the House of Representatives and the Senate, there are well over a dozen bills that address the conflicts between state and federal cannabis policy. NCIA’s lobbying efforts focus primarily on banking access and the unfair taxation caused by Section 280E, but we also advocate for other bills that are crucial for the industry. Below are my choices for “The 5 Critical Pieces of Cannabis Legislation You Need to Know About”:
BANKING H.R.2076: Marijuana Businesses Access to Banking Act of 2015 Introduced by: Rep. Ed Perlmutter (D-CO, 7th District) Last Action: Referred to House Subcommittee on Crime, Terrorism, Homeland Security, and Investigations on June 1, 2015. Summary: This bill would provide a safe harbor for depository institutions providing financial services to a cannabis-related business insofar as it prohibits a federal banking regulator from: (1) terminating or limiting the deposit or share insurance of a depository institution solely because it provides financial services to a marijuana-related legitimate business; or (2) prohibiting, penalizing, or otherwise discouraging a depository institution from offering such services.
S.1726: Marijuana Businesses Access to Banking Act of 2015 Introduced by: Sen. Jeff Merkley (D-OR) Last Action: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs on July 9, 2015. Summary: Although the House and Senate cannabis banking bills are companions, the bill introduced by Sen. Merkley is slightly more detailed in its language.
The Senate bill would prevent federal banking regulators from: prohibiting, penalizing or discouraging a bank from providing financial services to a legitimate state-sanctioned and regulated marijuana business; terminating or limiting a bank’s federal deposit insurance solely because the bank is providing services to a state-sanctioned marijuana business; recommending or incentivizing a bank to halt or downgrade providing any kind of banking services to these businesses; or taking any action on a loan to an owner or operator of a marijuana-related business.
The bill also creates a safe harbor from criminal prosecution and liability and asset forfeiture for banks and their officers and employees who provide financial services to legitimate, state-sanctioned marijuana businesses, while maintaining banks’ right to choose not to offer those services. It would also require banks to comply with current Financial Crimes Enforcement Network (FinCEN) guidance, while at the same time allowing FinCEN guidance to be streamlined over time as states and the federal government adapt to legalized medicinal and recreational marijuana policies.
280E H.R.1855: Small Business Tax Equity Act of 2015 Introduced by: Rep. Earl Blumenauer (D-OR, 3rd District) Last Action: Referred to House Committee on Ways and Means on April 16, 2015. Summary: Amends the Internal Revenue Code by adding language at the end of Section 280E that would exempt a trade or business that conducts marijuana sales in compliance with state law from the prohibition against allowing business-related tax credits or deductions for expenditures in connection with trafficking in controlled substances.
S.987: Small Business Tax Equity Act of 2015 Introduced by: Sen. Ron Wyden (D-OR) Last Action: Referred to Senate Committee on Finance on April 16, 2015. Summary: This Senate bill is the companion to the H.R. 1855 described above. As such, the summary is the same.
STATES’ RIGHTS AND RESPONSIBILITIES H.R.1940: Respect State Marijuana Laws Act of 2015 Introduced by: Rep. Dana Rohrabacher (R-CA, 48th District) Last Action: Referred to the House Subcommittee on Crime, Terrorism, Homeland Security, and Investigations on May 15, 2015. Summary: Amends the Controlled Substances Act to provide that the provisions of the Act related to cannabis shall not apply to any person acting in compliance with state laws relating to the production, possession, distribution, dispensation, administration, or delivery of marijuana
CIVIL ASSET FORFEITURE H.R.3518: Stop Civil Asset Forfeiture Funding for Marijuana Suppression Act of 2015 Introduced by: Rep. Ted Lieu (D-CA, 33rd District) Last Action: Referred to the House Subcommittee on Crime, Terrorism, Homeland Security, and Investigations on October 5, 2015. Summary: This bill would prevent the Drug Enforcement Administration (DEA) from using federal forfeiture funds to pay for its Domestic Cannabis Eradication/Suppression Program. Additionally, the bill would ban transferring property to federal, state or local agencies if that property “is used for any purpose pertaining to” the DEA’s marijuana eradication program.
MEDICAL CANNABIS S.683: Compassionate Access, Research Expansion, and Respect States (CARERS) Act of 2015 Introduced by: Sen. Cory Booker (D-NJ) Last Action: Referred to Senate Committee on the Judiciary on March 10, 2015. Summary: Amends the Controlled Substances Act (CSA) to provide that control and enforcement provisions of such Act relating to marijuana shall not apply to any person acting in compliance with state law relating to the production, possession, distribution, dispensation, administration, laboratory testing, or delivery of medical marijuana.
Transfers marijuana from schedule I to schedule II of the CSA.
Excludes “cannabidiol” from the definition of “marijuana” and defines it separately as the substance cannabidiol, as derived from marijuana or the synthetic formulation, that contains not greater than 0.3% delta-9-tetrahydrocannabinol on a dry weight basis.
Prohibits a federal banking regulator from: (1) terminating or limiting the deposit insurance of a depository institution solely because it provides or has provided financial services to a marijuana-related legitimate business; or (2) prohibiting, penalizing, or otherwise discouraging a depository institution from providing financial services to a marijuana-related legitimate business.
Provides depository institutions that provide financial services to a marijuana-related legitimate business protection under federal law from federal criminal prosecution or investigation, criminal penalties, and forfeiture of legal interest in collateral solely for providing financial services to such a business.
Directs The Department of Health and Human Services to terminate the Public Health Service interdisciplinary review process described in the guidance entitled “Guidance on Procedures for the Provision of marijuana for Medical Research” (issued on May 21, 1999), and also demands the Drug Enforcement Administration to issue at least three licenses under CSA registration requirements to manufacture marijuana and marijuana-derivatives for research approved by the Food and Drug Administration. Also directs the Department of Veterans Affairs (VA) to authorize VA health care providers to provide veterans with recommendations and opinions regarding participation in state marijuana programs.
H.R.1538: Compassionate Access, Research Expansion, and Respect States (CARERS) Act of 2015 Introduced by: Rep. Steve Cohen (D, TN-9) Last Action: Referred to the House Subcommittee on Crime, Terrorism, Homeland Security, and Investigations on April 21, 2015. Summary: This House bill is the companion to S. 683 described above. As such, the summary is the same.
In addition to these crucial pieces of legislation, there are other bills relating to cannabis that have been introduced to Congress on issues like CBD, a federal excise tax on cannabis, veterans’ access, and hemp. Cannabis advocates and NCIA members should continue to participate in NCIA’s events and lobbying efforts in addition to contacting their elected officials in order to see cannabis continue to progress in Washington, D.C. and on Capitol Hill.
Guest Post: Raising Money 101 – What’s an Offer and Why Does it Matter?
This is article is the first in a series, which will provide a general overview of the laws that impact raising money in the cannabis industry.
Any business owner planning to raise capital should consider the federal Securities Act of 1933, commonly referred to as the “Securities Act.” In addition to federal law, each state has its own set of laws that regulate securities sales, commonly referred to as the “Blue Sky Laws.” Both the Securities Act and any applicable Blue Sky Laws must be complied with in connection with the sale of securities – a security being proof of ownership or debt that has been assigned a value and may be sold (stocks and bonds are examples). Both the Securities Act and the Blue Sky Laws regulate the sale of securities by prohibiting the offer and sale of unregistered securities (other than pursuant to specified exceptions) and requiring companies to provide investors disclosure of all material facts concerning the securities for sale.
Crucially for business owners, it’s not only the actual documents to raise money that are governed by the Securities Act: so are those initial business plans and executive summaries that might be circulated to gauge interest. Ensuring that your business plans are not violating any securities laws is the focus of this article.
In analyzing whether a transaction or communication is in compliance with the Securities Act and Blue Sky Laws, it’s helpful to think through the following questions:
Does the transaction or communication constitute an offer or sale?
Is the offer or sale of a security (as defined in the Securities Act and the Blue Sky Laws)?
If there is an offer or sale of a security, is the security properly registered with federal and state authorities?
If there is an offer or sale of a security and the security is not registered, does the transaction fall within one or more of the specified exemptions to registration?
As you assess your materials for compliance, begin by asking whether an offer has been made. If a transaction or communication does not constitute an offer, then compliance with state and federal securities law is not a concern. However, if an offer is unintentionally made – a common mistake – it may trigger a violation of securities law since it is unlikely that the unintentional issuer will have taken into account the necessary disclosure items and determined the relevant exemption to registration. Note that in the context of securities law, “issuer” means any company that issues or proposes to issue a security.
What, then, is an offer, from the federal standpoint and from that of the state of Colorado? Section 2(a)(3) of the federal Securities Act defines “offer” as “every attempt or offer to dispose of, or solicitation of an offer to buy, a security or interest in a security, for value.” Under the Colorado Securities Act, “offer to sell” includes any attempt or offer to dispose of, or solicitation of an offer to buy, a security or interest in a security for value and “offer” means an offer to sell or an offer to purchase. What constitutes an offer, furthermore, may be a matter of perceived intent rather than explicit proposal: the SEC has noted that “[t]he publication of information and statements, and publicity efforts, generally, made in advance of a proposed financing, although not couched in terms of an express offer, may in fact contribute to conditioning the public mind or arousing public interest in the issuer or in the securities of an issuer in a manner which raises a serious question whether the publicity is not in fact part of the selling effort.” As a practical matter, these definitions, as well as the SEC’s guidance, mean that many communications that would not be considered offers under contract law may well be considered offers for purposes of state and federal securities law.
From a practical point of view, then, how should an entrepreneur approach an action that might be considered an offer – distributing information about a new company, for example? To mitigate risk of a securities violation, consider the following factors before circulating information about your business:
Include Appropriate Disclaimers: If you do proceed with distribution, any documentation provided to potential investors should contain disclaimers that clearly indicate that the provided information is not an offer or a solicitation of an offer to buy securities. Note that such disclaimers do not necessarily mean the document will not be considered an offer.
Require Further Information: Any documentation should also state explicitly that further information about a purchaser will be required before an offer can be made.
Minimize Details: Generally speaking, the fewer details provided about a potential security, the better. Even high-level details can result in a document being considered an offer.
Ensure Accuracy: Make absolutely sure that any information provided is correct and not misleading (i.e., do not claim that cannabis is legal in the United States, note that it remains illegal at the federal level). Avoid selective disclosure and be prepared to stand behind any claims made.
Follow Best Practices: Every communication should adhere to best practices regarding offerings in general (e.g., avoiding general solicitations, keeping track of distributed documents, etc.)
Seek Legal Counsel: When in doubt, speak to a qualified securities attorney. It’s always easier to do things right the first time, whereas it may not be possible to fix certain mistakes.
This information is educational only and shall not be construed as legal advice. Please consult your attorney prior to relying on any information in this article.
Charlie Alovisetti, Vicente Sederberg LLC
Charlie Alovisetti is a senior associate at Vicente Sederberg LLC. Prior to joining Vicente Sederberg, Charlie worked as an associate in the New York offices of Latham & Watkins and Goodwin Procter where his practice focused on representing private equity sponsors and their portfolio companies, as well as public companies, in a range of corporate transactions, including mergers, stock and asset acquisitions and divestitures, growth equity investments, venture capital investments, and debt financings. In addition, Charlie has experience counseling portfolio and emerging growth companies with respect to general corporate and commercial matters and all aspects of compensation arrangements, including executive employment and consulting agreements, stock option plans, restricted stock plans, bonus plans, and other management incentive arrangements. Charlie has experience in both U.S. and cross-border transactions, and has advised clients across a range of industries including technology, manufacturing, software, digital media, energy and clean tech, healthcare, and biotech. He holds a Bachelor of Arts, with honors, from McGill University and a law degree from Columbia Law School, where he was a Harlan Fiske Stone Scholar.
*Currently only admitted in New York
Guest Post: Legislation, Rule-Making, and the Necessity to Be a Unified Industry
In the 2015 legislative session, much changed in Washington State cannabis law. As with any change in cannabis law in any state, there is much drama that happens after such a change. Usually there is much bickering, finger-pointing, rumors, and misinformation in general. People seem to come out of the woodwork with often nonsensical interpretations of the new law. This often makes me wonder where they were during the legislative session when they may have been able to change the details that seem to trouble them now.
The fact is that all laws passed are imperfect. They are going to need to be fixed and those fixes are going to need to be fixed. There is not just one person that writes what is passed as law. There is a plethora of authors that include industry, interest groups, law enforcement, localities, citizen groups, and many others. Omnibus laws are going to advance some things and create problems elsewhere. This is to be expected.
The thing about law is, once it has passed and been signed by the Governor, it is what it is until the next session. This is not the time for bickering for those that are serious about making positive change. This becomes a time to work together. Once a bill becomes law, the legislative verbiage is put through a process called “rule-making.” In this rule-making, things can be steered within the framework of the law. In addition, the time before the next legislative session is a perfect time to solicit consensus and to author and shop legislative verbiage to potential bill sponsors.
After passage, no matter whether you like the law or not, it needs to be studied. It should be done dispassionately. It should be done section by section. You should ask yourself:
What does this section say?
What is the legislative intent of the section?
What is the synopsis of the section?
What rule-making does this section call for and by which agency?
Are there things in this section that need to be changed in subsequent legislative sessions?
You should write your answers to these questions down so that you can refer to them later. This is the way that you can be most effective at influencing rule-making and achieving success in subsequent legislative sessions. Really, how are you to influence rule-making when you don’t know what rule-making is going to happen with which agency? How are you going to achieve consensus enough to get changes in a legislative session when you don’t know specifically what needs to change?
We in the cannabis industry need to stop the self-destructive habit of thinking of legislative changes as “good” or “bad.” During session we need to do our best to be influential to produce the best results possible. After a law is passed we must come together to produce the best possible results in rule-making and plan for the next legislative session. To do this we need to stop finger-pointing and work together. Divisiveness and name-calling poisons the well for consensus-building.
Approaching a rule-making body or legislature as one person or organization is not going to be very influential.
Approaching the same as an industry with a common voice is powerful and will be extremely helpful in creating positive change.
We must put aside the pettiness and ego and work together for the betterment of the industry and the movement. Those that are willing to work together need to be finding the others that are willing to work together. We need to be focused on listening to others in the industry to understand what their ideas and concerns are. We need to include the end users and to consider their points of view. We need to have patience with each other. We need to put in the work to build consensus on the changes that need to be made. We need to be willing to compromise for the greater good. We need to accept that what happens in the end will not be perfect. We need to, in short, be an industry.
Prohibition is the enemy, not each other. To that end, we have been working to bring together the various industry groups in Washington State to form a super organization that is allied in its purpose. The Coalition for Cannabis Standards and Ethics, CAUSE-M, WAMJA, WMA and Northwest Producers, Processors, and Retailers have formed a Steering Committee to bring these organizations under a common banner. These groups represent the full spectrum of the industry, consisting of producers, processors, retailers, and ancillary businesses. It is my belief that there needs to be industry consensus even when there may be differences in perspective. Retailers and producers working against each other in a lobby effort really just has the effect of negating both. We are looking forward to merging together and ultimately forming a commission that is state-recognized.
Together we will move into the future.
John Davis, Northwest Patient Resource Center
John Davis, an entrepreneur and drug policy activist in Seattle, is founder of Northwest Patient Resource Center. After managing the oldest and longest running medical cannabis dispensary in the state, Compassion In Action, John founded Northwest Patient Resource Center, where he currently serves as the organization’s Chief Executive Officer. John is a founder of the Coalition for Cannabis Standards and Ethics (CCSE) and currently serves as the Executive Director of the industry group. He also chairs the CCSE Access Point Subcommittee. John is on the Board of Directors of the National Cannabis Industry Association (NCIA) and the Cannabis Defense Coalition (CDC), and is on the Advisory Board for Blue Sage Microbes and Life Sense Technologies.
You’re Invited: Celebrating NCIA’s 5th Year Anniversary
By Brooke Gilbert, Director of Events & Education
As the close of 2015 approaches, and along with it NCIA’s 5th year of successful operation, we are very excited to be gearing up to celebrate this momentous occasion with all our members and supporters! Much has changed since NCIA formed back in 2010, and there can be no denying the monumental strides achieved since then by the cannabis industry.
To celebrate these successes, we will be holding a refined retrospective-themed banquet the evening of November 11 at a breathtaking location, The Vortex, in Las Vegas. At the entrance of The LINQ promenade, The Vortex feels like a work of art, with a name inspired by its 7,000-square-foot, color-changing canopy vortex of lights. The Vortex is one of Vegas’ premier outdoor event venues and features a second-story observation deck beneath its LED canopy, situated in a prime location overlooking The Strip.
As in years past, we will be honoring elected officials throughout the evening who have been champions of our issues. We have nominated Senator Ron Wyden (D-OR), Senator Jeff Merkley (D-OR), Representative Barbara Lee (D-CA 13th District), Representative Jared Polis (D-CO 2nd District), and Representative Barbara McClintock (R-CA 4th District) as the “Honorary Legislative Leaders” of 2015. During the banquet, we will be awarding one of these elected officials our coveted “Cannabis Industry Legislative Leadership” award distinguishing them as our industry’s champion this past year.
In addition to the awards ceremony, included in each $250 admission is a three-course meal, an open bar, musical entertainment by Erothyme, and a special gift bag filled with mementos to commemorate the occasion. You will also have the chance to explore our photo gallery offering an industry retrospective of the past five years of growth while making your own memories along our red carpet. In addition, you can take part in our silent auction where we’ll be offering up lots of unique cannabis and cultural memorabilia along with a few once-in-a-lifetime travel packages.
A huge thank you to our generous sponsors for making this event possible!
Premier Sponsor:
Silver Sponsors: Bronze Sponsor:
P.S. – Looking for more ways to support our 5th anniversary celebration? There are still a few high-level sponsorship opportunities available, as well as the opportunity to become a “Friend of the Industry” through a $500 donation.
If you would like to showcase your brand while publicly supporting NCIA’s work during one of the most important evenings of the year, contact us at events@thecannabisindustry.org or (888) 683-5650 today.
Guest Post: Deal for Regulations Passes California Legislature
by Nate Bradley, Executive Director of California Cannabis Industry Association
We did it! After almost 20 years without statewide regulations, the California State Legislature has taken an important first step in creating a legal framework for medical cannabis. On September 11th at 11:47 pm, CCIA staff watched as the legislature sent a package of bills to the Governor’s office. Those bills – AB 266, AB 243, and SB 643 – combined to make the Medical Marijuana Regulation & Safety Act (MMRSA).
The MMRSA establishes the Bureau of Medical Marijuana Regulation under the Department of Consumer Affairs. The Department of Food and Agriculture has responsibility for regulating cultivation and processing, the Department of Public Health is tasked with developing standards for the manufacture, testing, and production and labeling of all cannabis products, and the Department of Pesticide Regulation oversees developing pesticide standards. For more information on what this legislation does, please check out CCIA’s “MMSRA Cheat Sheet” here.
We think it’s fair to say most CCIA members understand the need for regulation and are glad California has started the process. That said, we believe parts of the bills need fixing. We are eager to hear what you think. We will continue relying on feedback from our allies in the industry to help us develop follow-up legislation — and to take part in the rule-making process — to address these issues. That said, the clear message from our members has been: even strict regulation is better than no regulation at all.
Nate Bradley, cofounder of the California Cannabis Industry Association, an independent state affiliate of NCIA
We also hope this legislation will put California in compliance with the U.S. Department of Justice guidelines, which ought to end federal prosecution of lawful cannabis operators in California. The citizens of California spoke clearly when they voted for medical cannabis in 1996; their elected representatives have just spoken again. We hope the federal government will respect California’s clear desire to have a well-regulated medical cannabis industry.
Our expectation is that California will now be able to take its rightful place as the center of investment and innovation in the cannabis economy. Governor Brown and his colleagues in the legislature have just given the green light to let California’s cannabis industry become the thriving, tax-paying, job-creating industry it was always destined to become.
Nate Bradley, based in Sacramento, is the executive director and cofounder of the California Cannabis Industry Association (CCIA). He is responsible for CCIA’s public policy advocacy and political strategy in California’s State Capitol. Nate also has ten years of education and experience in law enforcement and is a speaker for Law Enforcement Against Prohibition (LEAP).
Member Spotlight: Triple C Cannabis Club
Returning from a very busy summer season, NCIA continues the tradition of featuring one of our members in a monthly member spotlight. For October, we chat with Brian Caldwell of Triple C Cannabis Club, based in Tacoma, Washington. Triple C is proud of their home state of Washington for being one of the first in the nation to recognize and respect the right of every adult to decide what is best for his or her health and happiness. As one of the first and most successful medicinal dispensaries in the state, Triple C continues to lead the way in the transition to adult-use by elevating the retail experience with award-winning selection, service and staff.
Cannabis Industry Sector:
Medical Cannabis Providers
NCIA Member Since:
2014
How do you uniquely serve the cannabis community?
Triple C Cannabis Club is completely dedicated to procuring safe, tested, and properly labeled medical-grade cannabis products for our patients. We take meeting the needs of our patients very seriously and refuse to compromise our standards. We are committed to only providing the very best to our patients. Additionally, we feel we must help be the voice for the patients we serve that otherwise could or would get lost in a bureaucratic system. Change, especially the legalizing of cannabis that has occurred in Washington State, has been quite intimidating. We are here to help and support our patients through this process while ensuring our state’s regulators have trusted professionals from our industry to work with.
Why should customers looking for medical cannabis go to Triple C Cannabis Club?
Patients who want to #ExperienceChronicWellness ® will find a wide selections of oils, edibles, salves, topicals and more at Triple C Cannabis Club. We pride ourselves on consistent medicinal product availability that has been rigorously tested and is produced by the state’s elite manufacturers. Triple C Cannabis Club staff is award-winning and very knowledgeable on a wide array of products and medicines. They ensure product safety and patient confidentiality and consistently perform to the highest standards of care. As the first union shop in Washington, I am proud to work with UFCW to advance the safety and wellbeing of all who come through our doors, regardless if they are a patient or staff.
Our business has evolved rapidly along with the changing legal landscape. As a result, people come to us for very different reasons. Many want to relieve pain and promote healing naturally. Others seek to ease stress, enhance experiences, or nurture creativity. The many wonders and benefits of cannabis are why it has been so beloved for most of recorded history.
Brian Caldwell, Triple C Cannabis Club
Can you give us some insight into the cannabis community in Washington, the challenges, upsides, and where you’d like to see it go?
As we have seen in other states, and in Washington’s past, the road to regulation of cannabis is a difficult one, but one that is desperately needed. The state has to balance federal jurisdictional issues, patients have fears due to years of persecution, and business owners are trying hard to be law-abiding, good corporate citizens. When Washington started the medical cannabis journey in 1998, we all shared the vision of a legal and safe environment for patients. However, with the veto offered by then-Governor Christine Gregoire, that was not the case. The laws have been interpreted in many different ways, hence the success of the black and grey markets. So here we are some twenty years later, trying to fix the regulations to create that safe marketplace we all had envisioned. I believe that if we work with state legislators on practical regulations and our congressional delegation on fixing taxation and banking, it will go a long way in bringing our industry into mainstream acceptance and small business success.
Why did you join NCIA?
I joined NCIA for numerous reasons, but first and foremost is their clear mission to advance the cannabis industry with a thoughtful and targeted approach. The leadership they are providing to our congressional delegation on matters such as banking and taxation is unmatched by any other groups. The cannabis industry needs a strong and professional voice to help solve these critical industry problems, which is exactly what NCIA has stepped up to do. The commitment that NCIA has to membership development, education, and networking is another reason why I chose to become a member. Triple C Cannabis Club supports the efforts of those that want to advance our industry in a positive and educated manner, and NCIA is a good reflection of those principles.
Brand loyalty is a major topic in any industry today and particularly in the cannabis industry. However, brand loyalty can be a tricky concept. What exactly does it mean? How is it achieved or measured? And what are the tangible effects of strong brand loyalty? I’d like to offer some insight into this last question because of how large the potential revenue is for brands with loyal followings.
My firm, Brightfield Group, researches the top brands in the cannabis industry and why consumers select them. What we found in our recent survey of medical cardholders was that brand loyalty is a significant driver in purchasing decisions.
Using the edibles market as an example, we found that 73% of consumers have a favorite brand. Once they find it, they’re extremely loyal, with 60% of these consumers choosing that brand at least 75% of the time.
“Brand loyalty is as important to the cannabis industry as any other and perhaps more because there are no long-established, dominant brands.”
That’s tremendously powerful when you break down the numbers. Take California’s edibles market for example. It is worth about $250 million right now and is projected to grow to $1.2 billion by 2019. If 60% of consumers buy their favorite brand 75% of the time, that’s $112 million that’s won by the power of brand loyalty in 2015. It would be $530 million in 2019, assuming the percentages remain the same. Now this is a very simplified example, but using it one can see the magnitude of the revenue involved when brands build a loyal following.
Then consider how fragmented this market currently is. Going back to our example, the top 10 edibles brands in California combined make up less than 25% of the total market. While this is typical of an industry at this stage in its lifecycle, what it means is that there is a lot of market share still to be captured. That’s about $187 million available for capture this year and almost $1 billion in 2019, again using the numbers above. And that’s just in California. This same story is being played out across other states and other categories such as concentrates or topicals, which are even more fragmented.
The implication for existing brands is that they should exploit their first mover advantage, expand their footprint and increase market share as fast as possible, because the next stage in the industry lifecycle is consolidation, where scale becomes essential. However, in this industry, expanding that footprint isn’t so easy with the current regulatory challenges. That said, some brands are starting to do it, such as Cheeba Chews and Bhang, which are both top 10 edibles brands in multiple states. But there’s a long way to go.
Brand loyalty is as important to the cannabis industry as any other and perhaps more because there are no long-established, dominant brands. The field is wide open, and although there are challenges to building that loyalty, the revenue potential is huge.
Patrick Hayden is the President of Brightfield Group, LLC. Patrick has worked in both market research and investment management for 15 years, most recently as Director of Investment Analysis for a large, private pharmacy benefits manager. Previously he was a consultant with a global research firm helping hedge funds leverage emerging markets data to boost investment returns. Prior to that, Patrick worked in an alternative investment firm where he was involved in numerous private placements raising over $100 million.
He has a Bachelor of Arts in Economics from the University of Iowa and his MBA from City University of New York.
Monthly Video Newsletter: September 2015 National Progress Report
Thank you for joining us for this September edition of NCIA’s monthly video newsletter.
Executive Director Aaron Smith shares the national progress report for the cannabis industry.
Not sure you’ll be making it to Vegas just yet? You can still support NCIA’s fifth anniversary by making a generous contribution to our annual fundraising drive today! All proceeds support our work defending the cannabis industry in Washington, D.C.
Guest Post: Growing Pains in Michigan
(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.)
by Matthew Abel, Cannabis Counsel P.L.C.
Michigan is poised for change, as it has been for years. Almost seven years of the Michigan Medical Marihuana Act (sponsored by MPP in 2008) has brought plenty of litigation, but no legal dispensaries. That seems likely to change in 2016, one way or another.
Matthew Abel speaks to the crowd at Hash Bash in Ann Arbor, MI
It is possible that the Michigan legislature, which has done nothing to improve the stalemate on dispensaries and the questionable legality of anything other than “dried leaves and flowers,” may finally move forward. The dispensary and extracts bills now are joined by a seed-to-sale tracking system. That finally may overcome the objections of those coddling law enforcement, who see enforcement having to move on to other things (like violations of the new regulations).
Multiple legalization petitions are afoot. One would set up a three-tiered system like the clumsy, expensive, and oligopolistic Michigan liquor control framework. It has taken years to allow brewpubs in this state. Even now, a small local brewery is prohibited from selling directly to retail outlets; everything must go through one of the few beer and wine wholesalers, who take a cut (of course). Even that, however, is not the worst part of the ballot initiative being circulated by the Michigan Cannabis Coalition. The worst part is that any violation of the law still would be a crime. Growing more plants than allowed (two flowering plants, or potentially four if the municipality allows it) would be a felony. Selling to anyone without a license would still be a felony.
The proposal I favor (and which I helped draft) is sponsored by MILegalize. Aside from allowing distribution directly from cultivator to retailer, the main benefit of this legalization proposal is that it no longer criminalizes marijuana except for providing to minors or for driving under the influence. As we move from prohibition to legalization, we need to remember that much of the benefit of legalization is the concept of generally removing marijuana from the illegal market, with the huge savings of lives and money which accompany the move to put cannabis distribution into the legal market.
MILegalize is the right form of legalization. It removes most criminal penalties for cannabis. Eliminating crime by design of our drug laws and treating it as a public health issue, rather than a criminal justice issue, is a healthy change. That is the best reason to support the model put forward by MILegalize, as opposed to the three-tiered system proposed by the Michigan Cannabis Coalition.
For those who need to see a direct economic benefit before considering financially supporting this initiative, don’t be shortsighted. Michigan has a population twice the size of Colorado. MILegalize has no residency requirement, no financial bars to entry, and no caps on size or number or growers, processors or retailers (that is left up to each municipality, who stand to recover 20% of the excise tax imposed at the retail level).
Marijuana legalization in the face of continued criminal punishment in not nearly as sweet. I cut my teeth as a criminal defense attorney, and have had the unfortunate opportunity to see, up close, the negative unintended consequences of a medical marijuana law which is far too restrictive and fails both in providing necessary products and access, while also failing to protect those who are intended to benefit from the law. We need to not continue to make the same mistakes in the progression toward full legalization.
As a person who wants to see government work for the people, we need to recognize that the law itself is most of the problem, and leaving criminal penalties in place only perpetuates the problem.
For more information on MILegalize or to make a contribution, visit www.milegalize.com.
Matthew Abel, Cannabis Counsel, PLC, based in Detroit, MI
Matthew Abel is Executive Director of Michigan NORML and Senior Partner of the Detroit law firm Cannabis Counsel, P.L.C. He has been a member of NCIA since July 2013. Mr. Abel has been a criminal defense lawyer with a special focus on marijuana cases for more than 20 years. Mr. Abel’s Detroit-based law office capably handles marijuana possession, trafficking and distribution cases throughout the state of Michigan. His marijuana-specific practice areas include smuggling issues on the U.S.-Canadian border, asset forfeiture that victimizes clients, and questionable drug testing procedures.
He is a lifetime member of the NORML Legal Committee and the National Association of Criminal Defense Lawyers, and a member of Criminal Defense Attorneys of Michigan, the National Lawyers Guild, Americans for Safe Access, and the legal committee of the ACLU of Michigan. He has lectured on Michigan Medical Marihuana Law for Oaksterdam University in Michigan, the Michigan Cannabis College, MedGrow Cannabis College, the Michigan Institute for Continuing Legal Education, the Cannabis Career Institute, and to bar associations throughout Michigan. Mr. Abel was Director of the Committee for a Safer Michigan, sponsor of an unsuccessful 2012 Michigan Constitutional Amendment Ballot Question Committee, to repeal marijuana prohibition in Michigan for adults 21 and over. www.repealtoday.org
Submit Your Speaker Proposal for the 2016 Cannabis Business Summit!
By Brooke Gilbert, Director of Events and Education
As the director of events and education for the National Cannabis Industry Association, there are many joys that come along with managing our speaker bureau.
Putting together the agenda for our annual national conference, the Cannabis Business Summit, is without a doubt one of the most enjoyable and important responsibilities I manage. Time and time again we hear from attendees how valuable the information presented at our events was to them. We are always striving for the highest quality of speakers and most relevant session topics to help your cannabis business be successful in the long run.
This is where you, as a valued member of NCIA, come in.
“The organization and overall experience at [NCIA] events is always extremely professional. The Cannabis Business Summit was no exception. As someone who attends over 30 industry events a year, I believe this makes for an environment which is conducive to teach and learn.”
-Nick Tanem, Owner, Essential Extracts
Becoming a speaker at our Cannabis Business Summit establishes you as a thought leader in the cannabis industry. It presents you with the opportunity to address and educate a national audience of business owners and operators. It also gives you the direct opportunity to continue creating and contributing to the advancement of a responsible industry. By working together and sharing knowledge, we will continue to raise the bar collectively and propel us into a new era.
So what are you waiting for? Submit your proposal today! Have questions or suggestions about how you can contribute to NCIA’s educational programs? Connect with me at brooke@thecannabisindustry.org to discuss potential opportunities.
The link above will take you to our speaker proposal form, hosted by MemberClicks.
Cannabis State Applications: Don’t Forget Your Security Plans
A United States marijuana production license from 1945
There are three things in business you should never do:
Be your own doctor
Be your own lawyer
Write your own State Cannabis Application
Having been involved in the cannabis industry the last few years, I have seen many businesses and entrepreneurs who have a strong desire to get into this industry. Some want to own cultivation centers and grow marijuana, others want to run a dispensary and sell the marijuana, and then there is another more ambitious group who wants to do both. I think this is great and I encourage all to get involved in this growing and ever-changing industry.
But before you buy your cannabis equipment and hire a staff, you will first need for your state to give you a license. In order to get this license, you will need to apply to the state for review and approval. Your application can range from 300 to 2,000 pages and will cover a wide range of operational programs, including a well-defined security plan.
The primary purpose of a cannabis security plan is to provide a safe and secure environment for your employees, patients and visitors. Your security plan will cover facility security, security surveillance, product security, and policies & procedures.
Just like a doctor who specializes in a disease or a lawyer who only deals in certain types of the law, you want to make sure the person or company
who writes your application has written previous cannabis state applications. This is not the time to give a lawyer or accountant friend, ex-DEA agent, or a retired police chief the chance to learn how to write a cannabis application. Remember, you may only get one chance at a cannabis license and the state regulatory agencies are not very forgiving when it comes to incomplete or poorly written cannabis applications.
So make sure your cannabis application is the best it can be and look for a professional who specializes in this type of application writing.
I wish you the best of luck in this new and exciting industry.
Watch this YouTube video of Tony Gallo from Sapphire Protection speaking about security at CannaStock on September 26, 2014.
Tony Gallo is the Senior Director of Sapphire Protection (www.sapphireprotection.com) with over 30 years in the Loss Prevention, Audit, Safety, and Risk/Emergency Management fields. Tony has a Bachelor of Science degree in Criminal Justice from New Jersey City University and is a member of Americans for Safe Access and National Cannabis Industry Association. Tony is considered one of the leading authorities in cannabis and financial loan service, retail loss prevention, and security. Contact Tony at tony@sapphireprotection.com and follow him on Twitter at @SapphireProtect.
by Aaron Smith, NCIA Co-founder and Executive Director
When a handful of top cannabis business leaders came together to form a national industry association in 2010, the world was a different place. Medical cannabis providers were routinely raided by federal law enforcement, the media often characterized cannabis businesses as illegitimate, and there was little political will in Congress to take on the marijuana issue whatsoever. Some of my colleagues in the reform movement even expressed skepticism over whether it was entirely a good idea to bring the industry together as a vocal stakeholder in the fight to change outdated marijuana laws.
Aaron Smith at NCIA’s 1st Annual Cannabis Business Summit, June 2014
As we come close to concluding our 5th year of operation, I’m incredibly proud of what our members have made possible. Cannabis businesses are now largely taken seriously by the mainstream media, a majority of voters, and we are experiencing greater momentum in Congress than ever before.
Too much has happened over the last half-decade to list it all but here are just a few key developments:
Four states and the District of Columbia have legalized adult cannabis use and robust industries have already taken root in Colorado and Washington,
Protections for medical marijuana businesses have been included in the federal government’s annual budget,
Presidential candidates are taking our industry seriously and at least one held a fundraiser with the industry during NCIA’s national Cannabis Business Summit, and
This progress didn’t happen by coincidence. The cannabis industry is finally being taken seriously because our members have come together to assert their collective economic and political strength just as every other business sector does.
The coordinated political and communications strategy executed by NCIA has changed the narrative around marijuana. The debate is now more about how legal cannabis sales will be regulated than about whether people should be put in jail for its use. We have also reframed the conversation so that responsible cannabis businesses and the economic and social benefits they offer communities are at the forefront.
2016 is going to be an even bigger year for the industry and as we look back at our accomplishments, we also must acknowledge there is so much more work that needs to be done before our industry is treated fairly under federal law.
In celebration of NCIA’s 5th Anniversary, we are challenging each of our nearly 1,000 members to contribute at least $500 in our annual fund drive so that we can start next year off as strong as possible.
As a token of my gratitude, all members who contribute to this cause will be acknowledged at our 5th Anniversary Banquet in Las Vegas on November 11. All contributors will also be entered into a drawing to win an iPad Air 2, which will be selected at the Anniversary Banquet.
Please consider investing in the future of the industry by giving a $500 gift to NCIA* today. All proceeds will support our direct advocacy and lobbying efforts on behalf of the cannabis industry.
As the seasons change, so does the amount of light that enters into your greenhouse. Summer months may offer an abundance of natural light; however, the longer nights of winter require supplemental lighting for growers to achieve the best yield possible from their crop. Some greenhouse facilities shut down during the winter months due to natural lighting restraints, but there are easy solutions that can mean more harvests and bigger profits for growers. The first step is to target a daily light interval (DLI) number for each facility and design the supplemental light accordingly. This ensures optimal light intensity and uniformity in the facility year-round. 
For example, at urban-gro, once we know the facility’s DLI and obstructions within the greenhouse structure, we begin the planning process and consider technical factors for the layout of the lighting system. Ensuring optimal lighting layout for the grow facility is the top priority. Incorporating lights into the structure so they create minimal shadowing is critical; this ensures that the crops are getting the optimal amount of natural light when the sun is shining. 
A rider known as the Bonamici-Massie amendment, which prevents the DEA from intervening with state-sanctioned and legal hemp, was also included in the final budget package. This section 
No other business organization has done (
By John Davis, 
At the entrance of The LINQ promenade, The Vortex feels like a work of art, with a name inspired by its 7,000-square-foot, color-changing canopy vortex of lights. The Vortex is one of Vegas’ premier outdoor event venues and features a second-story observation deck beneath its LED canopy, situated in a prime location overlooking The Strip.
But before you buy your cannabis equipment and hire a staff, you will first need for your state to give you a license. In order to get this license, you will need to apply to the state for review and approval. Your application can range from 300 to 2,000 pages and will cover a wide range of operational programs, including a well-defined security plan.