NCIA Today – Thursday, April 6, 2023

Join NCIA Director of Communication Bethany Moore for an update on what’s going on with NCIA and our members. This week we discuss 13 women scientists you NEED to know, our recent podcast check-ins with members of the New York State Office of Cannabis Management, discuss a recent letter NCIA sent to the Congressional Banking and Finance Committees, and look forward to the remainder of our city events coast-to-coast leading up to Lobby Days in May.

 

Member Blog: Merchandising in Your Retail Dispensary – How to Make the Most of Your Space and Increase Profits

by Melinda Yoo, Sungrown Studios

How to make the most of your space and increase profits and move inventory when sales stall

Merchandising a dispensary can be a daunting task. There are many components to consider; different brands, product types, customer needs, compliance, promo’s, and security are just a few. Product placement in a dispensary often determines the traffic low of the space. We know that certain products that require a longer “browse time” may also create traffic flow bottlenecks in the floor plan if not carefully planned and executed. But often in the design process, merchandising comes after the general front of house layout. Then, merchandising and product placement sometimes becomes a task left for the last minute, or worse, someone on the staff who has no experience. 

Another tricky merchandising caveat is that it needs to lend itself to the vision of the brand and the overall customer experience. There are so many nuances to how merchandising effects the customer journey, that without vast knowledge in customer trends, store layout conventions, general marketing and design, hiring a professional is the only way to check all of those boxes.

There are some general guidelines that will help you and your team navigate merchandising your dispensary and getting a professional, cohesive feel to your cannabis dispensary. 

‘Less is more’ applies here in a big way. Overloading your fixtures with multiples of each product creates visual clutter and removes the “specialness” of each package. I highly recommend no more than three of each SKU on a single display. If the packaging is large or tall you may want to reduce the quantity. Products should have ample space around each package to give visual breaks from product to product. 

The ‘less is more’ strategy also applies to signage and info cards too. Font overload or forcing your customers to read or scan QR codes constantly detracts from the product, detracts from the implied budtenders connection to the customer and ultimately their unique expertise. This is why most digital menu boards are unsuccessful. Control what your rented shelf space looks like with your vendors. Make sure guidelines are put into contract that outline very clearly what their topper or display will look like. You don’t want to give them free reign of your carefully planned dispensary. Visual clutter and font overload is a common merchandising mistake. 

Review your human scale. The heights and depths of fixtures are sometimes calculated to simply put as much product inside as possible, not how comfortably someone can view or reach something. This is very common with the vision type merchandise tables built for display and cash wrap vision cases. You usually have to move around a bit, stretch to see the middle or back up and lean over to look inside. Would your staff have to constantly bend or reach to access products? Or turn their backs on the customer? If the scale is correct, the customer will not have to be uncomfortable while looking at your products. This also goes for furniture. The scale of your seating, tables, reception desks are all crucial to the comfort level of your space. 

Checking your profit margins by SKU’s is a great way to begin laying out your cases or shelves. A complete inventory list with markup percentages, top sellers and unique products will be needed to identify which products deserve the hottest locations in the cannabis dispensary. You may actually be surprised at what you find. Every individual fixture will also have a hot zone, or an area where customers gravitate to and typically select products from. You want to take full advantage of those top-selling sections. 

Identify the ‘hot zones’ in your space. Interior store merchandisers will have a complete system in place for identifying these areas. But you can get a great snapshot for yourself if you look closely at your store on a busy Saturday. Watch how the customers enter. Did they go left or right? Where do they look and walk first? When they look at a wall display or into a vision case, which side are they looking at? What level? How long did they stand there? Make some notes and see if all of the customers entering are shopping in nearly the same convention. Are there areas of your dispensary that customers seem to be avoiding? Take notes on those too. What products are in those areas? Are they just not trending products? Ugly or awkward packaging? Or are the fixtures not well lit? Too much signage? Now compare that to what you see on a slower day and time. Are the results consistent?

This is commonly called journey tracking and will give you great insights into how well your fixtures and store floor plan is working (or not working) for you. Customer shopping habits are both fascinating and trackable, and very likely give you the info you’ll need to make any adjustments to your current shelf conventions or floor plan. 

Make them meander. Often, dispensaries have a long and narrow footprint. The tendency is to put all the cases on the side walls and the checkout counter running across the back of the store, leaving your middle of the store empty. Runway-style floor plans can be extremely successful if you take deliberate steps to stop the customer at various points and encourage a meandering path of travel. If your customers are going straight to the back counter and straight back out the door, you are definitely not capturing sales you could be, and you’re wasting your real estate. Without cluttering the middle space, i do like to add staggered fixtures (table height as to not create a security sight blind) that display various products, impulse items and even merch when applicable. These meandering tables encourage the guest to move through the space in a zig zag pattern and more often than not they will walk in a zipper pattern. Which also means, the items that are on the outside walls where the meandering tables terminate will be hot zones. Use that to your full merchandising potential. Use LED light strips or spots to highlight these areas and products. 

Finally, stop overcomplicating things. Every single product does not need museum- like merchandising, staging, lighting, or signage. Lay off the repetitive info and QR codes, neon, digital, and clutter. A great hint is to go to your favorite store. It doesn’t have to be a dispensary either, just a great shop or boutique that you enjoy shopping in. Do your own self-customer journey while you’re there. Revisit how you entered, where you walked and paused, and where specifically you purchased from. Think about how the product was presented to you, and ask yourself if the layout and merchandising encouraged you to buy more? 

Thinking critically about your personal shopping experience and making some simple changes will help you shape the customer experience in your own dispensary. It’s also helpful to bring in a fresh perspective from time to time. 

Setting a standard for merchandising practices across all of your locations is a great way to make sure that you’re implementing tried and true techniques to increase sales, food traffic and put your best image forward as an organized, beautiful and profitable dispensary. 


Melinda Yoo designs innovative, profitable and award-winning cannabis retail dispensaries across North America. Her work is inspiring, her clients are notable and her vision for the cannabis industry is unparalleled. She leads her team thoughtfully through the creative and technical processes of creating unique retail experiences that are both jaw dropping and profitable. 

After over a decade at a traditional, residential interior design firm in Chicago, Melinda followed her curiosity to retail interior design and merchandising. She quickly fell in love with dispensary design and all the quirks and challenges that go with it. 

Since then, she has grown and led Sungrown Studio, received press recognition with her magazine-worthy retail environments and thought leadership. Sungrown Studio was named Dispensary Design Master 2022 by mg Magazine. Melinda continues to design amazing retail stores that reflect her clients values and brand. 

When she’s not leading her kickass team, you can find her spending time on the hiking trails with her dog or raising her three little humans. 

Equity Member Spotlight: From Equity Scholarships to Committee Leaders

by Mike Lomuto, NCIA’s DEI Manager

NCIA committees are looking, sounding, and acting more and more like the diverse faces of Main Street cannabis. And it’s not just about representation. When the diversity of our cannabis community is reflected in NCIA Committee leadership, the conversations we are having across the organization more accurately reflect the experiences of the industry. 

All of the NCIA Committee members profiled here came through the Equity Scholarship program, an initiative of our DEI Program to systematize more equitable representation at the organization.  These leaders have much to say on how we all become more successful when equity is at the forefront. 

As the proverb goes, “If you want to go fast, go alone. If you want to go far, go together”. 

Why did you choose to volunteer to serve on a committee?

John Murray (JM), President, Sustainable Innovations, Hemp Committee – To actively contribute to the advancement of sensible industry-wide policy reforms

Samantha Sage (SS), Founder, Kind Philanthropy, Education Committee – To continue to ‘Hype-up Community Impact’ in the Cannabis industry, and collaborate with other leaders to progress social responsibility. 

Anthony Jenkins (AJ), CEO, Next Level, Cannabis Manufacturing Committee – The path for an entrepreneur aiming to obtain a manufacturing license is littered with unnecessary roadblocks and I would like to help minimize those hurdles for the next generations of cannapreneurs. 

Raina Jackson (RJ), Founder & CEO, PURPLE RAINA Self Care, DEI Committee Organizer – I volunteered so that I can advocate for myself and others facing similar challenges as cannabis license applicants and operators. 

Richard Fleming (RF), President, Altered State Cannabis Company,  Retail Committee -As a pre-operational entity the main reason is to learn as much as possible from seasoned operators and ancillary companies with experience in various markets. Just as important, is to actively participate in a group of likeminded people to further the cause of normalization. 

Toni, Toni Consulting and Wellness, Education Committee; Health Equity Working Group

Toni (T), Founder, Toni Consulting and Wellness, Education Committee; Health Equity Working Group – I volunteer to be the change I want to see in the cannabis industry. Utilizing my voice, face, knowledge, and experiences.

Kenneth Cottrell (KC), COO, Cannalean LLC,  DEI Committee – I chose to volunteer on the DEI Committee to help promote legislation to promote a more diverse cannabis industry. According to MJBizDaily, “in the cannabis space, executive positions held by racial minorities fell to a new low for the group since they began tracking the number in 2017, dropping to 12.1% in 2022 from 13.1% in 2021” (MJBizDaily 2022). 

Why is it important for committees to include proper representation from diverse communities, and more specifically from our Equity Scholarship Program?

John Murray, Sustainable Innovations, Hemp Committee

(JM) Diversity inclusion provides a broadened perspective with contributions from different backgrounds, capabilities, and regulatory environments.  It is important to work together as a team and understand all viewpoints to become and remain successful. 

(AJ) It’s very important for committees to have proper representation and include our Equity Scholarship winners in their meetings to diversify the narrative and present issues and solutions from a different perspective.

(RJ) It’s important for us to share our experiences as Equity Scholarship Program recipients on committees because we have so much to contribute to the dialogue and multi-faceted solutions. We have traditionally been excluded from economic opportunities and are rarely consulted on the important policy and regulatory decisions that often continue to harm us.

(RF) The information from a wide array of backgrounds and perspectives from all levels of the spectrum is paramount in creating and shaping a positive image in the cannabis industry. By providing a platform for us as individuals, our ideas, our businesses and our communities to reverse the stigma and become a driving force in the market. 

(T) In order for any organization to be truly useful, representation must reflect diversity. If not we end up with solutions that are not equitable.

Kenneth Cottrell, Cannalean LLC, DEI Committee

(KC) It is important for committees to champion diversity. Creating diversity on committees promotes an organization as an equal and inclusive environment. It is very important for the current members who are participating, but it will also improve talent recruitment and innovation efforts for the organization. As an alumni of the NCIA’s Equity Scholarship Program, it was the main reason I became active in the organization and used its resources to help promote my company, Cannalean.  

What has your experience serving on a committee been like thus far? Is there any committee work from previous years you’d like to share?

(JM) The committees I served on have been mainly focused on consumer and legislative education. 

(RJ) I benefited so much from my first year working with mission-focused cannapreneurs along the supply chain, that I volunteered for a second year.

(T) Health Equity working group was able to host a town hall discussion on the importance of cannabis health equity in disadvantaged communities. 

(KC) My experience serving on the committee has been amazing. I was very impressed by the kickoff zoom meeting. I also met a lot of my fellow committee members at MJ Biz Con and MJ Unpacked. I am looking forward to hearing how cannabis policy is progressing around the country and if there are any policy frameworks that I can use to lobby in Nevada. 

What are you hoping to accomplish during the 2023 committee term?

(JM) Complete educational series and contribute to sensible regulatory language for the 2023 Farm Bill, which impacts our entire industry. 

Samantha Sage, Kind Philanthropy, Education Committee

(SS) Inspire more committee members and leaders in the Cannabis industry to build community impact initiatives into business plans and build relationships with nonprofit organizations. 

(AJ) In the 2023 committee term I would like to make it easier for the states coming on to find information about how to run a successful cannabis manufacturing program that includes equity. I would also like to make it easier for future cannabis manufacturers to become licensed, and adopt best practices to help their business succeed. 

(RJ) I will continue to represent the interests of Equity cannapreneurs navigating the regulatory landscape nationwide, with a focus on CA and NY, and in May 2023 I plan to represent the DEIC at Lobby Days in D.C. As a member of the Policy & Regulatory sub-committee, I am synthesizing the policy recommendations of members of the NY Social Equity Roundtable, informed by the best practices and failings of existing programs nationwide.

(RF) I hope to inspire others to find their niche and participate in all aspects of the movement. I really look forward to being an integral part of initiatives that promote our collective goals and move the dial on the public’s education and opinion. Additionally, receiving and utilizing information from others will assist in avoiding pitfalls they have witnessed or experienced themselves. 

(T) I hope to bring awareness to cannabis health equity, policies, and initiatives that support inclusivity. I seek to inspire businesses to invest in education in disadvantaged communities in ways that provide equitable long-term benefits and solutions.

(KC) I am hoping that we bring awareness to the lack of diversity in ownership and senior-level management in the cannabis industry. I want to work on developing a cannabis leadership incubator that focuses on cannabis policy, fundraising, and supply chain. There are states like Nevada that need more comprehensive social equity programs. I want to work with the committee to propose laws and policy to present to Nevada elected officials. 

 

A Unified Cannabis Industry Voice in Washington

Photo By CannabisCamera.com

by Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations

When I first started at NCIA nearly nine years ago, there were a lot less people lobbying for cannabis reform on Capitol Hill. As our industry has grown and expanded, so has the government relations presence in D.C., but that also means that unification and coordination has become more difficult. New trade organizations have been created, individual companies with competing interests have hired their own lobbying firms – it’s a lot to keep track of! As a result, one of the things we’ve heard most from Capitol Hill staffers is that a unified voice would be incredibly helpful when trying to get legislation over the finish line. 

So, NCIA got to work to make that happen, convening a working group comprised of the trade organizations in the cannabis space we work closely with on the Hill. In the following weeks, we sent a unified industry letter on SAFE Banking and hosted a briefing and reception for freshman members and staff on Capitol Hill. 

Industry Letter 

On March 21, NCIA, along with the National Cannabis Roundtable (NCR), United States Cannabis Council (USCC), Minority Cannabis Business Association (MCBA), and National Hispanic Cannabis Council (NHCC) sent a letter to Senate Banking Committee Chairman Sherrod Brown (D-OH) and Ranking Member Tim Scott (R-SC) calling on them to act to address the continued lack of equitable access to banking and capital for cannabis related businesses and expeditiously take action on the bipartisan SAFE Banking Act upon its reintroduction. You can read the full text of the letter here

Just a day later, the American Bankers Association (ABA) Washington Summit was held. Chairman Brown said, “Prognosis is positive… I’m hopeful we can do it [SAFE Banking] relatively soon.” Ranking Member Scott also spoke about the importance of moving the bill forward through “regular order” while reiterating that he doesn’t necessarily support the legislation himself. Scott, who is running for president in 2024, also said that cannabis reform broadly is, “something that we’re going to have to wrestle with as a nation and as a Congress and get to an answer there.”

Looks like the Senators agree with our letter! 

Freshman Briefing and Reception

As lobbyists, one of our biggest jobs is educating members of Congress and their staff about the issues facing our industry and how to address them. That can be difficult, however, there’s 535 members of Congress and a lot of staff turnover (not to mention elections every two years!). 

To combat this, NCIA, NCR, USCC, and the American Trade Association for Cannabis and Hemp (ATACH) came together to host a briefing on Cannabis 101 for freshman members of Congress and their staff. This is the first time that all of the major trade organizations have come together to host an event like this and it was incredibly well received. Former Colorado Senator Cory Gardner (R) even said to me personally how remarkable the coalition was!  

The briefing included messages from all four members of the Congressional Cannabis Caucus, panels on “Incremental Approaches & Comprehensive Reform” and “Current Operational Landscape Potential & Challenges” as well as a fireside chat between Rep. Troy Carter (D-LA) and Sen. Gardner. 

Following the briefing, a reception was held in Rayburn Cafeteria where more than 100 Hill staffers and lobbyists mingled to discuss all things cannabis. All of the feedback we received was overwhelmingly positive, with questions about when the next event would be! I made sure to remind everyone that NCIA’s 11th Annual Cannabis Industry Lobby Days would be taking place May 16-18, and that we look forward to visiting their offices and educating them further. 

You won’t want to miss this event – register today and sign up for our newsletter to make sure you continue to get all of the latest information and updates about how to get involved with our work in Washington!

Member Blog: Debit and Credit Card Processing at Your Cannabis Dispensary, Finally

by Stuart Lutterman, Brother Processing Solutions (BPS)

Accepting money for legal and licensed cannabis dispensaries has been like the wild west over the past few years. In the U.S., the banking landscape for marijuana businesses is confusing and can seem flat-out impossible to organize. Because of this, many shops still take cash for most of their payments. In 2023 this should not be the case. The problem is that many dispensaries have no access to debit card processing that allows them to take card sales but with severe limitations. Here we’ll look at some signs it is time to upgrade your cannabis debit card processing provider.

Processing Fees & Rates Per Transaction

The most straightforward item to look at is the processing rates and per-transaction fees for your cannabis dispensary. This has gotten more competitive over the years, with merchant service providers pushing down rates to stay relevant. But the fact remains that many cannabis merchant services have higher rates and more expensive per-transaction fees than what businesses should be paying in 2023.

Long gone are the days of dispensaries and marijuana accessory shops being labeled “high-risk” by banks. We’ve come a long way, but dispensaries are still looked at in an unfair light when compared with traditional business varieties. If you are facing direct deposit times longer than one business day, providing high cash reserves to your processor, and paying anything more than regular processing fees, it’s time to make a change.

Why Offer Credit & Debit Card Processing 

When a patient or customer enters a dispensary to make a purchase, dispensaries that do not have a cashless payment option may find they are limiting the amount of product they can sell. Look at it this way; a patron comes into the dispensary with $80. They plan to spend a total of $80 on cannabis. However, when they get to the counter and see the great options, they think, “I’m here now; why don’t I double up my order and save myself the next trip.” Or they see the menu options and want to try a few varieties, quickly getting over $80. But they only have $80 cash in hand, no ATM nearby, and the dispensary doesn’t have a card-paying option. The dispensary misses out on more business, and the patient or patron is disappointed.

This is the last place we want to find our customers as business owners. If they have a desire and you have the product, you should be able to meet them in the middle and offer additional options for making their purchase. 

The Point Is…

Dispensaries who offer cash-only payment options lose sales, period. How many times have you seen customers in this scenario? They come to your cannabis dispensary and browse the menu. Make a few choices, but when it’s time to pay, a problem, your dispensary only takes cash, and the customer doesn’t have any on them. Don’t leave sales on the table (literally) because you don’t take any form of card payment. POS systems are often free and can be installed easily in a matter of minutes. It also eliminates the need for making cash deposits at the bank or installing a cash management system to keep staff in check. It is a true win-win for dispensary owners and accessory businesses. In 2023, not offering a card payment option is just silly.

Benefits of Changing your Merchant Service Provider

There are a few key reasons to upgrade your processor; let’s take a quick look:

  • get new and better processing rates
  • eliminate per transaction fees
  • upgrade your card reader and touchless payment options
  • allow customers to make larger purchases
  • eliminate cash where possible and streamline the customer experience
  • take higher tickets per customer
  • improve direct deposit time frames
  • increase sales volume and profit margins

Offering customers every available payment option will give them confidence in their cannabis purchases. Therefore making them more likely to return.

Find the right Cannabis Merchant Service in the U.S.

So many merchant services are out there, but few specialize in the cannabis industry. This industry isn’t like others, so it stands to reason that working with a cannabis-specific company makes the most sense. You don’t want to use a big box bank that will look for reasons to pile on fees and moral judgment. Working with a smaller cannabis-focused outfit is something the entire industry should consider.  


Stuart Lutterman is the owner/founder of Brother Processing Solutions (BPS), a family-run business with more than fifteen (15) years of experience in the Merchant Account/Credit Card Processing industry. BPS specializes in all cannabis business varieties from farming, processing, packaging, and sales of both recreational & medical dispensaries as well as Indigenous-owned businesses. BPS works closely with every client, understanding their individual needs, and providing a direct point of contact to financial services across the board. https://BrotherProcessing.com

Dispensaries who offer cash-only payment options lose sales, period. How many times have you seen customers in this scenario? They come to a cannabis dispensary and browse the menu. Make a few choices, but when it’s time to pay, a problem… your dispensary only takes cash, and they don’t have any on them. This problem is so common we shot a commercial about it. 

 

Committee Blog: 13 Women Cannabis Scientists to Follow and Support

by Russ Hudson, Canna Advisors
Member of NCIA’s Scientific Advisory Committee

Introduction

These 13 women cannabis scientists and researchers deserve to be recognized for their significant scientific and academic merit alone, irrespective of their gender. For now, we are identifying these stellar individuals as women solely because of the cannabis industry’s longstanding domination by males. Supporting these professionals in their scientific work with cannabis is critical to advancing the global cannabis agenda, which seeks to make cannabis medicine and other products readily available to people globally. Sharing the work and efforts of these exceptional humans is precisely what is needed to inspire the next generation of cannabis scientists, where gender will no longer be a defining feature.        

Shawna Vreeke, Ph.D.

*Ph.D. in Organic Chemistry from Portland State University
*Cannabis Toxicology and Risk Assessment

Dr. Vreeke works with Ethan Russo and the team at True Terpenes, where she is Head of Research, performing risk assessments and managing the company’s toxicology program that she developed. With nearly a decade of experience already in laboratory research, Dr. Vreeke is expected to have a long and storied career in the science of cannabis.  

PUBLICATIONS BY SHAWNA VREEKE, Ph.D.:

A First-Tier Framework for Assessing Toxicological Risk from Vaporized Cannabis Concentrates

A Simple Predictive Model for Estimating Relative E-cigarette Toxic Carbonyl Levels

Dihydroxyacetone levels in electronic cigarettes: Wick temperature and toxin formation. 

E-cigarettes can emit formaldehyde at high levels under conditions that have been reported to be non-averse to users

Triacetin Enhances Levels of Acrolein, Formaldehyde Hemiacetals, and Acetaldehyde in Electronic Cigarette Aerosols

 

Susan Trapp, Ph.D.

*Ph.D. in Biochemistry from the University of Maryland
*Cannabis terpene researcher

Dr. Trapp is one of the world’s leading terpene experts, and she also happens to be an expert in cannabis, particularly where related to the plant’s chemical constituents. Dr. Trapp is the Senior Research Scientist for the Southwest College of Naturopathic Medicine & Health Sciences, she is the co-founder and chief scientist of a terpene company she founded called Terpedia, and she is an adjunct biology professor at Red Rocks Community College in Lakewood, Colorado. Dr. Trapp contributed commentary to The Big Book of Terps, and has authored the publications listed below:

PUBLICATIONS BY SUSAN TRAPP, Ph.D.:

Genomic Organization of Plant Terpene Synthases and Molecular Evolutionary Implications

Defensive Resin Biosynthesis in Conifers

Draft genome sequence of Mentha longifolia and development of resources for mint cultivar improvement

Gene expression profiling identifies inflammation and angiogenesis as distinguishing features of canine hemangiosarcoma

Molecular signatures of neoadjuvant endocrine therapies for breast cancer: characteristics of response or intrinsic resistance, Breast Cancer Research and Treatment

 

Riley Kirk, Ph.D.

*Ph.D. in Pharmaceutical Sciences from University of Rhode Island
*Cannabis educator and research scientist

Dr. Kirk is a natural product chemist working as a Cannabis Research Scientist for Real Isolates, LLC. She is also a cannabis science educator for Cannabichem, LLC, and has spent years donating her time to various worthy charitable causes and programs. 

PUBLICATIONS BY RILEY KIRK, Ph.D.:

Screening the PRISM Library against Staphylococcus aureus Reveals a Sesquiterpene Lactone from Liriodendron tulipifera with Inhibitory Activity

New Micropeptins with Anti-Neuroinflammatory Activity Isolated from a Cyanobacterial Bloom

Polyphenol Microbial Metabolites Exhibit Gut and Blood–Brain Barrier Permeability and Protect Murine Microglia against LPS-Induced Inflammation

 

Daniela Vergara, Ph.D.

*Ph.D. in Evolutionary Biology from Indiana University Bloomington
*Cannabis researcher: genomics, breeding

A long-time dedicated researcher in the higher education industry, Dr. Vergara is currently an emerging crop specialist for Cornell University, a research associate with the University of Colorado Boulder, and the director and founder of the Agricultural Genomics Foundation based in Colorado. 

PUBLICATIONS BY DANIELA VERGARA, Ph.D.:

Widely assumed phenotypic associations in Cannabis sativa lack a shared genetic basis

 

Anna Schwabe, Ph.D.

*Ph.D. in Biological Education from University of Northern Colorado
*Cannabis educator and R&D specialist
*Cannabis genetics

Dr. Schwabe is a cannabis geneticist with a passion for studying inconsistencies in commercially available cannabis flower. Extremely active in the cannabis space and beyond, Dr. Schwabe is the Director of Cannabis Education for 420 Organics, the Director of Research and Development for Shore Organics, and an Associate Lecture Professor for the University of Colorado Boulder. 

PUBLICATIONS BY ANNA SCHWABE, Ph.D.:

Comparative Genetic Structure of Cannabis sativa Including Federally Produced, Wild Collected, and Cultivated Samples

Genomic Evidence That Governmentally Produced Cannabis sativa Poorly Represents Genetic Variation Available in State Markets

Research grade marijuana supplied by the National Institute on Drug Abuse is genetically divergent from commercially available Cannabis

Genetic tools weed out misconceptions of strain reliability in Cannabis sativa: Implications for a budding industry

Weeding out the truth behind Cannabis strain names: Genetic analyses confirm strain names are inconsistent and need regulation

 

Megan Mbengue

*Master of Science in Medical Cannabis Therapeutics from Pacific College
*Cannabis Nurse – CHPN, RN

Megan Mbengue, BSN, RN, CHPN is the founder of Trusted Cannabis Nurse, and has earned her reputation as a frank and passionate consumer educator in the cannabis industry. A longtime RN specializing in hospice and palliative care, Megan brings her passion for cannabis science education to the public, supported by a line of her own high quality hemp extract products.  

 

Jill Carreiro

*BS, Bioengineering, Arizona State University
*Cannabis analytical testing expert

Jill specializes in cannabis analytical chemistry, working as Vice President of Sales for Orange Photonics, a company that produces analytical testing equipment for the cannabis industry – most notably handheld and portable testing units. Jill has a strong scientific background in analytical instrumentation, supported by her education in bioengineering. 

 

Shabnam Sarshar, Ph.D.

*Ph.D. in Pharmaceutical Biology and Phytochemistry from University of Munster
*Cannabis phytochemical researcher

Dr. Sarshar is passionate about cannabis for women’s health, having founded Laia’s FemBalance, a company that advocates for and encourages women’s health and other rights in Germany and worldwide. With an MBA in addition to a Ph.D., Dr. Sarshar is also a proficient and well-known business expert.  

PUBLICATIONS BY SHABNAM SARSHAR, Ph.D.:

Plants of the Gods and Their Recently Discovered Therapeutic Applications.

Traditionally used medicinal plants against uncomplicated urinary tract infections: Hexadecyl coumaric acid ester from the rhizomes of Agropyron repens (L.) P. Beauv. with antiadhesive activity against uropathogenic E. coli.

 

Allyn Howlett, Ph.D.

*Ph.D. in Biochemical Neuropharmacology from Rutgers University
*Professor at Wake Forest University Baptist Medical Center
*Discoverer of CB1 receptor for cannabinoid agonists

Dr. Howlett is one of the most-published cannabis-specific scientists in the world, and comes highly recommended to this list by numerous well-respected cannabis scientists and researchers. Dr. Howlett is also a Professor of Physiology and Pharmacology at Wake Forest University Baptist Medical Center, where her expertise as a biochemical neuropharmacologist working with cannabinoid receptor signal transduction is highly valued by the current and next generation of cannabis and other professionals. 

PUBLICATIONS BY ALLYN HOWLETT, Ph.D.:

Increased Angiotensin II Contraction of the Uterine Artery at Early Gestation in a Transgenic Model of Hypertensive Pregnancy Is Reduced by Inhibition of Endocannabinoid Hydrolysis

Alterations in the Medullary Endocannabinoid System Contribute to Age-related Impairment of Baroreflex Sensitivity

Is there a role for anandamide in cardiovascular regulation? Insights from studies of endocannabinoid metabolism

Steric Trigger as a Mechanism for CB1 Cannabinoid Receptor Activation

Early phytocannabinoid chemistry to endocannabinoids and beyond

WIN55212-2 Docking to the CB1 Cannabinoid Receptor and Multiple Pathways for Conformational Induction

Endocannabinoid System in Pregnancy Maintenance and Labor: A Mini-Review

Endocannabinoids and Reactive Nitrogen and Oxygen Species in Neuropathologies

Cannabinoid Receptor Interacting Protein 1a (CRIP1a) in Health and Disease

Acute Depletion of D2 Receptors from the Rat Substantia Nigra Alters Dopamine Kinetics in the Dorsal Striatum and Drug Responsivity

The Spicy Story of Cannabimimetic Indoles

The Endocannabinoid System and Oligodendrocytes in Health and Disease

Cannabinoid Receptor Interacting Protein 1a (CRIP1a): Function and Structure

WIN55212-2 Modulates Intracellular Calcium via CB1 Receptor-Dependent and Independent Mechanisms in Neuroblastoma Cells

Cannabinoid receptor interacting protein 1a interacts with myristoylated Gαi N terminus via a unique gapped β-barrel structure

CB1 Cannabinoid Receptors Stimulate Gβγ-GRK2-Mediated FAK Phosphorylation at Tyrosine 925 to Regulate ERK Activation Involving Neuronal Focal Adhesions

Thyroid Effects on Adenosine 3′,5′-Monophosphate Levels and Adenylate Cyclase in Cultured Neuroblastoma Cells

Medullary Endocannabinoids Contribute to the Differential Resting Baroreflex Sensitivity in Rats with Altered Brain Renin-Angiotensin System Expression

 

Ziva Cooper, Ph.D. 

*Ph.D. in Biopsychology from the University of Michigan
*Director of the UCLA Center for Cannabis and Cannabinoids

Dr. Cooper is the Director of the UCLA Center for Cannabis and Cannabinoids, and Associate Professor in the Department of Psychiatry and Biobehavioral Sciences. A longtime health care professional specializing in neurobiology, Dr. Cooper has been working in the cannabis industry for many years, including a former appointment on the Committee on the Health Effects of Marijuana by The National Academies of Sciences, Engineering, and Medicine. Dr. Cooper has published numerous studies on various aspects of cannabis and cannabinoids. 

PUBLICATIONS BY ZIVA COOPER, Ph.D.:

Impact of co-administration of oxycodone and smoked cannabis on analgesia and abuse liability

Methodology for controlled administration of smoked synthetic cannabinoids JWH-018 and JWH-073

Sex-Dependent Effects of Cannabis and Cannabinoids: A Translational Perspective

Effects of ibudilast on oxycodone-induced analgesia and subjective effects in opioid-dependent volunteers

The Health Effects of Cannabis and Cannabinoids: The Current State of Evidence and Recommendations for Research

Effects of zolpidem alone and in combination with nabilone on cannabis withdrawal and a laboratory model of relapse in cannabis users.

Oral Cannabidiol does not Alter the Subjective, Reinforcing or Cardiovascular Effects of Smoked Cannabis.

Adverse Effects of Synthetic Cannabinoids: Management of Acute Toxicity and Withdrawal

Novel Pharmacologic Approaches to Treating Cannabis Use Disorder

Investigation of sex-dependent effects of cannabis in daily cannabis smokers

A human laboratory study investigating the effects of quetiapine on marijuana withdrawal and relapse in daily marijuana smokers

Effects of acute oral naltrexone on the subjective and physiological effects of oral D-amphetamine and smoked cocaine in cocaine abusers.

Comparison of a drug versus money and drug versus drug self-administration choice procedure with oxycodone and morphine in opioid addicts.

Comparison of the analgesic effects of dronabinol and smoked marijuana in daily marijuana smokers

Subjective, cognitive and cardiovascular dose-effect profile of nabilone and dronabinol in marijuana smokers.

Buprenorphine/naloxone as a promising therapeutic option for opioid abusing patients with chronic pain: reduction of pain, opioid withdrawal symptoms, and abuse liability of oral oxycodone.

Marijuana’s dose-dependent effects in daily marijuana smokers.

Nabilone decreases marijuana withdrawal and a laboratory measure of marijuana relapse.

Predictors of marijuana relapse in the human laboratory: robust impact of tobacco cigarette smoking status.

Effects of menstrual cycle phase on cocaine self-administration in rhesus macaques.

Glial modulators: a novel pharmacological approach to altering the behavioral effects of abused substances

Effects of baclofen and mirtazapine on a laboratory model of marijuana withdrawal and relapse.

Opioid antagonism enhances marijuana’s effects in heavy marijuana smokers.

Comparison of subjective, pharmacokinetic, and physiological effects of marijuana smoked as joints and blunts

Actions of delta-9-tetrahydrocannabinol in cannabis: relation to use, abuse, dependence.

Cannabis reinforcement and dependence: role of the cannabinoid CB1 receptor.

Naltrexone Maintenance Decreases Cannabis Self-Administration and Subjective Effects in Daily Cannabis Smokers.

Sex-dependent effects of cannabis-induced analgesia

 

Carrie Cuttler, Ph.D.

*Ph.D. in Cognitive Science from the University of British Columbia 

Dr. Cuttler has published many valuable, relevant studies on cannabis and its constituents, especially in the field of obsessive use and addictive consumption, where her extensive education in psychiatry serves her and the public well. Dr. Cuttler is also an Assistant Professor with Concordia University.  

PUBLICATIONS BY CARRIE CUTTLER, Ph.D.:

Blunted stress reactivity in chronic cannabis users

Psychometric properties of the Daily Sessions, Frequency, Age of Onset, and Quantity of Cannabis Use Inventory (DFAQ-CU)

Symptoms of obsessive-compulsive disorder predict cannabis misuse

A cross-sectional survey of medical cannabis users: Patterns of use and perceived efficacy

Sex differences in cannabis use and effects: A cross-sectional survey of cannabis users

Mechanisms underlying the link between cannabis use and prospective memory

 

Michelle Glass, Ph.D.

*Head of the Department of Pharmacology & Toxicology at the University of Otago

Dr. Glass has specialized in cannabis, researching, among other subjects, cannabinoids, neurodegenerative diseases, Huntington’s disease, and G-protein coupled receptors. According to her profile on The University of Octago, “Professor Glass’ research focuses on the expression, function and molecular pharmacology of the cannabinoid receptors and their potential role in treatment of neurodegenerative diseases. Her recent research interests have extended to identifying the mechanism by which synthetic cannabinoids are resulting in high levels of toxicity in the community and advising on the development of clinical trials for medicinal cannabis products.”

PUBLICATIONS BY MICHELLE GLASS, Ph.D.:

Cannabinoid receptors in the human brain: a detailed anatomical and quantitative autoradiographic study in the fetal, neonatal and adult human brain

Concurrent stimulation of cannabinoid CB1 and dopamine D2 receptors augments cAMP accumulation in striatal neurons: evidence for a Gs linkage to the CB1 receptor

Immunomodulation by cannabinoids is absent in mice deficient for the cannabinoid CB2 receptor.

The pattern of neurodegeneration in Huntington’s disease: a comparative study of cannabinoid, dopamine, adenosine and GABAA receptor alterations in the human basal ganglia in Huntington’s diseas

Cannabinoid receptors and their endogenous agonists

Concurrent stimulation of cannabinoid CB1 and dopamine D2 receptors enhances heterodimer formation: a mechanism for receptor crosstalk?

Synthetic cannabis: adverse events reported to the New Zealand Pharmacovigilance Centre

Receptor alterations in human neuro-degenerative diseases

 

Amber Wise, Ph.D.

*Ph.D. in Chemistry from the University of California at Berkeley
*Cannabis compliance and analytical testing expert

Dr. Wise is an analytical chemist and laboratory manager with extensive experience at multiple universities. The current Scientific Director for Medicine Creek Analytics as well as the Programming Chair for the Cannabis Chemistry Subdivision of ACS, Dr. Wise has published several studies on the aerosols of cannabis products and byproducts of cannabis extractions, as well as studies in other fields.  

PUBLICATIONS BY AMBER WISE, Ph.D.

Metals in Cannabis Vaporizer Aerosols: Sources, Possible Mechanisms, and Exposure Profiles

Strategies for Nonpolar Aerosol Collection and Heavy Metals Analysis of Inhaled Cannabis Products

Deeper Dive into Extractions: Multiphase CO2 Extractions for Full Spectrum Native Chemical Profiles

Understanding the Science of Cannabis Produce DevelopmentExtraction Basics, Scientifically Speaking

Upstream adverse effects in risk assessment: A model of polychlorinated biphenyls, thyroid hormone disruption and neurological outcomes in humans.

Are Oral Contraceptives Significant Contributors to Estrogenicity of Drinking Water?

Discrete Arrays of Liquid Crystal-Supported Proteolipid Monolayers as Phantom Cell Surfaces

Policy Recommendations for Addressing Potential Health Risks from Nanomaterials in Californi

Are there other cannabis scientists that should be included in this list? Let us know using the CONTACT FORM HERE, or connect with the author via LinkedIn: https://www.linkedin.com/in/russhudson/

 

Member Blog: Licensing 101 – A Guide for Local Cannabis Entrepreneurs

An interview with Nate Reed, Unity Rd. & Item 9 Labs

Curious about opening up a dispensary? Here we sit down with Nate Reed, Unity Rd.’s Director of Licensing, to answer commonly asked questions about one of the most crucial pieces to open a compliant dispensary in any market – obtaining a license on the local and state levels.

What Do I Need To Apply For a License? 

Let us start with the basics. In cannabis, every business venture is going to be looked at under a microscope.

First, it is wise to have a team at the ready. Having owners, executives or principals in place is essential to begin, both for paperwork purposes as well as the face of the organization that will be presented to regulators.

This does not mean having a store’s general manager in mind from the outset, but rather the high-level management that make major decisions.

In this regard, it is also wise to include leadership with qualities that are desirable for owners and managers in this industry—if it is not stated explicitly, look to read between the lines. Someone with prior cannabis experience is always first prize.

This includes anyone with relevant legal cannabis experience, such as someone who has run or owned a dispensary or headed up a cultivation operation. These folks will bring the most value when rounding out a team. 

Beyond that, license applicants will want to be able to demonstrate that they have a solid suite of business-minded staff. Some may be able to keep rounding out the team to present a full picture, including a head of finance, and leaders that understand construction, real estate and security—essentially all the various talents that will make an enterprise successful. 

The other important piece is the cash. Is there capital or an investor in line to finance the venture?

Whether that is an actual owner or a third-party financier, everyone wants to feel confident an applicant is not going to run out of money before breaking ground.

Next, there are some basic fees associated with the application process that vary by jurisdiction.

Typically, one can expect an application filing fee at the state level. These can vary wildly ranging from a few hundred dollars to over $10,000.00. The local government might also require an additional fee, but these will be typically lower than state fees.

Finally – social equity. This umbrella term includes everything from previous disenfranchisement to being disproportionately harmed by the war on drugs. If an applicant falls into one of these categories, they may qualify for reduced fees or cost reimbursements. 

What Is the Timeline Like To Apply For and Receive a License?

Again, this largely depends on where the license is being applied for – individual cities and states all have their own timelines. 

States have a certain amount of time to receive applications, which is followed by a review process. In most states, there is a window – for example, applications will be accepted from August to October, followed by a 100-day review period before a license is issued. However, most municipalities also carve out exceptions for themselves, so they are not strictly held to deadlines, further obscuring clear timelines. 

Keeping expectations in check in this area will keep applicants from getting discouraged.

From the day an application window is open to the day a license is issued, be prepared for the timeline to be lengthy. It can take from months to years and any number of factors can slow it down—all stalling the process. 

Often, though, most licenses are issued somewhere between six to 18 months. This is admittedly a wide window and will ultimately depend upon the state the application is being made in. Understanding the process takes time and can drag on indefinitely will be helpful. 

Before any of this, however, the entire process of gathering the application materials is time-consuming and intensive. Unlike a typical business license, cannabis licensing is complex. Take, for example, merit-based or competitive applications. In these cases, applicants are required to write narratives and answer prompts. One may be required to supply ten years of income tax returns. A spouse’s information may be required. Expect robust hoop-jumping before even submitting the application. 

It is wise to begin the application process as soon as possible, allowing time to be thorough and present the best possible case.

Do I Need To Live in The City or State I Want To Apply in?

As with everything else in licensing, it depends. However, as the industry expands, this is less important than it once was. Early on, states and cities were more guarded with who could apply for and receive licenses and emphasized a local approach. However, some recent court rulings have deemed it unconstitutional to limit licenses solely to state residents.

While this requirement does still exist in some states, it is falling away in others. If there is a residence requirement, it is helpful to know that this is not an automatic disqualifier – someone who already owns a different business in the state may qualify based on that.

Do I Need To Form a New Company To Apply Under?

Is it required? No. 

Is it advisable? Absolutely. 

When applying for a license, it is always advisable to form a new company. 

Presenting a clear picture of the new company will make life smoother for both applicant and the regulator—outline the operating agreement, ownership structure, mission statement, and the like.

Typically, most opt for LLCs as they tend to be the most straightforward entity to form. Creating a C Corps is another option for those with grand plans. 

Do I Need Real Estate or Site Control To Apply? If so, Where Should I be Looking?

Again, this will depend on the state in which the application is being filed and what its specific requirements are. Some will want to see a lease, a purchase agreement, or a title deed for a compliant piece of real estate as part of an initial application package.

Regardless of whether real estate is required at the time of application, almost all states or municipalities will mandate a site with requisite buffers or setback zones. Across every state, dispensaries are required to be at a certain distance from schools, for example. There may be further requirements regarding proximity to residential areas. Finding the proper piece of real estate can often feel like searching for a needle in a haystack.

Some states, such as New Jersey and Illinois, offer conditional licenses – these include a proposed area but do not require a pre-existing lease agreement. Once a state grants this conditional license, it will trigger a countdown of sorts to fulfill the real estate clause before the issuance of a full operating license.

Does it Matter if I Have Been Arrested or Convicted of a Crime?

Simply put, it depends on the crime. In certain cases – such as being previously arrested for low-level cannabis possession; it may actually help! This is in line with social equity provisions in state legislation that seeks to redress harms caused by war on drugs. These benefits may include discounts on application fees, technical assistance, or even real estate in some cases.

However, convictions for other types of crimes, such as fraud or violent crime, are automatically disqualifying. 

How Many Other Licenses are Going To be Awarded

This varies by location and often evolves along with shifting sentiment and legislation.

Generally, states with medical-use-only laws are more like to have caps, as this is their first foray into the cannabis market. When Alabama legalized medical marijuana, for example, they allowed 37 total dispensaries. However, as states learn from neighbors or adopt plans to legalize adult-use cannabis, these limits are often drawn down.

Nevertheless, there are few universal truths when it comes to market size and local laws – Oklahoma is medical use only, with no upper limits on dispensaries, while New Mexico removed its cap for adult-use. 

Can I Apply For Multiple Licenses?

Typically not, although this depends on location. Generally speaking, regulators tend to limit licenses to one vertically integrated operation – encompassing cultivation, manufacturing and retail.

In some states with more laissez-faire regulation, it can be essentially unlimited, however – think New Mexico, Mississippi and Oklahoma. An outlier is Florida, where only a certain number of licenses are allowed, but under those licenses, an operator is allowed to have as many locations as they want, as long as the real estate is compliant. 

How can Franchising be a Viable Vehicle?

By now it is probably clear that jumping into the business of cannabis is not for the faint of heart. 

Many who have taken the plunge have found it indispensable to have access to the experience of those with industry acumen to navigate the complexity of everything from licensing to zoning and real estate.


At Unity Rd., we made it our mission to provide insight and expertise to guide local entrepreneurs and small business owners through these challenging hurtles – allowing them to enter the cannabis industry with the confidence they need to thrive successfully and compliantly. 

Nate Reed is currently the Director of Licensing for Unity Rd., the national cannabis dispensary franchise in the U.S. from Item 9 Labs Corp., which also cultivates and produces the award-winning Item 9 Labs product brand. He spearheads licensing efforts for the Company’s retail brand, develops standard operating procedures (SOPs) for corporate and franchise partner applications and conducts in-depth market research as cannabis legalizations increases.   

He first began his career in the legal cannabis industry in 2016, handling legal and compliance work for a cannabis real estate company. Reed has since worked in various licensing, legal and compliance roles for CannaRegs, MedMen, Embarc Retail and Vicente Sederberg.     

In 2015, Reed graduated from the University of Denver’s Sturm College of Law where he attended a Dean’s Scholarship and held various impressive legal internships and clerkships with companies such as MillerCoors and Fortis Law Partners. After successfully passing the Bar exam, he received his J.D. and officially became a lawyer.    

 

Video: NCIA Today – Thursday, March 23, 2023

Join NCIA Director of Communication Bethany Moore for an update on what’s going on with NCIA and our members. This week we look back on our Colorado Caucus, joined by video by Governor Jared Polis, and look forward to the remainder of our city events coast-to-coast leading up to Lobby Days in May.

Come Meet Congress – 11th Annual Cannabis Industry Lobby Days

by Madeline Grant, NCIA’s Government Relations Manager

Will you join us as a united front in Washington, D.C. this year?

Hundreds of cannabis industry professionals from all over the country will descend on Capitol Hill this month for the 11th year for NCIA’s Annual Lobby Days. It’s more important than ever before to make your voice heard and advocate for the federal reforms our industry needs to truly thrive.

Whether it’s access to banking for your business, much-needed federal tax reforms, or some of the many other struggles faced by our industry that could be remedied by congressional action, we need you to tell your stories on Capitol Hill with us on May 16-18.

Here’s our top four reasons for you to register today to join us for this exciting and impactful event this year:

New members of Congress

Last November, we saw midterm elections bring in a new class of freshman members of Congress. Many of these new faces replaced the old guard of those with long-standing prohibitionist views toward cannabis. Many of them lean more progressive, which means they are more likely to be friendly toward our issues. This infusion of new blood, new minds, and new perspectives in the halls of Congress can work in our favor.

NCIA’s Lobby Days is the best way to get direct access to some of these offices so we can get off on the right foot with them on our issues. Joining us in D.C. means you will inform and educate these new members of Congress on the struggles we face like tax reform, veterans’ medical access, social equity, and of course, the SAFE Banking Act specifically. How many new co-signers can we get on this bill? Let’s find out together.

Discuss incremental and comprehensive reform 

With new members of Congress come new staffers that need to be educated on cannabis policy reform. In an environment where there are hundreds of issues, it’s important we reach every Hill office. When we descend on Capitol Hill, NCIA members will have the ability to discuss their personal stories in the cannabis space. The government relations team is constantly on Capitol Hill meeting with offices; however, hearing directly from businesses is something special. 

As we are at the beginning of the 118th Congress, cannabis legislation will continue to be introduced and this is our opportunity to get members of Congress on board. It’s all about baby steps; as we educate congressional offices they now have the ability to reach out to NCIA for resources and information. Over the past ten lobby days, NCIA sees a significant increase in co-sponsorship for cannabis legislation.

When we go into meetings the government relations team will provide talking points covering incremental reform; such as SAFE banking and 280E reform. Further, we have the opportunity to gather intel regarding their view on comprehensive reform. We’ve seen bills, such as the Cannabis Administration and Opportunity Act and the States Reform Act. Although these bills have not had any legislative success, it’s important for Hill offices to understand the importance of state and federal conflict for the cannabis industry. 

Meeting 200+ other politically active industry professionals

It’s not a conference — it’s different. There’s no expo floor or panel discussions, just people. And it happens to be some of the most politically engaged leaders of our industry who attend Lobby Days. You’ll rub shoulders and team up with cannabis industry pioneers who have been in the game for years. You’ll learn the “ins and outs” of the Beltway from lobby day veterans who join us every year to advocate for our industry. Hear about it for yourself by watching this re-cap video from last year’s 10th Annual Lobby Days:

Learn how to lobby and take those lessons home

This isn’t our first rodeo, but it might be yours, and that’s okay. Even if you’ve never done citizen lobbying before, NCIA’s government relations team makes it easy by offering training before the event, as well as on-site. We’ll give you materials to help you tell your stories including descriptions of our priority legislation, and background information on the offices you’ll be speaking with. And you won’t have to go it alone! We will team you up with a small group of your fellow cannabis industry peers to navigate the halls of Congress together.

Lobby Days with NCIA will empower you to go back to your home state to advocate on the industry’s behalf. You’ll know what to say, how to say it, and what to expect.

Together, we can make a real difference and push our industry past the tipping point. Hundreds of NCIA members have already registered for this event, so what are you waiting for? Register today, schedule your flight, and book your hotel. We can’t wait to see you there.

Register today for NCIA’s 11th Annual Cannabis Industry Lobby Days.

Member Blog: What Ever Happened with the New York Minute in the Cannabis Industry?

by Andrew Kaye, Sweet Leaf Madison Capital 

2023 is New York’s year for cannabis – at least that is what we are being told. It has nearly been two years since the state voted in legalized recreational use and sale, but the state has been very slow in getting processing facilities and dispensaries up and running, with only three of the 66 licensed establishments in operation as of the end of February. It is no secret that New York has the potential to be one of the largest cannabis markets in the world. This year alone, New York City is expecting over 50 million visitors – many of them looking to buy legal weed. 

Everyone can see the value that New York will bring to the industry, but why does it feel like they are dragging their feet to bring something to the table? 

It appears that the state may have bit off more than it can chew. 

A lack of understanding of the complexities of securing commercial cannabis real estate combined with the fact that raising necessary capital has been slow-moving, has made it so that cultivators now have too much supply with no means of distribution to meet the demand. 

Good intentions, slow follow-through 

The guiding social equity program behind New York’s retail licensing system is a giant leap forward within the cannabis industry to bring up those directly affected by the failed war on drugs. The Cannabis Adult-Use Retail Dispensary (CAURD) licenses are aimed at prioritizing these underserved communities and awarding licenses to those who have been convicted of marijuana-related crimes, or have a direct family member that has been charged, with the opportunity to open retail locations. Nonprofits that work directly with these communities have a chance at obtaining licenses as well. 

One of the most enticing things about these licenses is that the Dormitory Authority of the State of New York (DASNY) has been tasked with finding storefronts for entrepreneurs who have been granted licenses and even build them out for them. To do so, the state has contracted 10 firms to design and construct each dispensary. But again, the state has been very slow in getting dispensaries up and running. It seems that DASNY has discovered the reality that finding landlords willing to lease to a cannabis business may be more daunting than expected. 

This only adds to the sense of urgency that has lingered in the air for the last two years. Businesses are ready to get up and running just to play catch up to the underground market that is thriving across New York City’s boroughs. Currently, New York has estimated that there are roughly 1,400 unlicensed retailers operating in the city. Unregulated sales mean that weed has the potential of going to underage kids, being tainted and it is all ultimately going untaxed. New Yorkers and the state are hurting due to the delayed rollout, but there is still time to change things around.

Since spaces are limited for license holders waiting on DASNY to figure out the real estate landscape, the state has started to give licensees the option to go out on their own to secure a location for the sake of being one of the first to the legal market. 

The problem is that this good news comes with a caveat. If a licensee decides to break out on their own, they will be forgoing their share of the $200 million public-private fund that DASNY has budgeted to help with operating costs. This fund is essentially a state loan that each retailer will have to pay back, including interest. But the problem is that DASNY has not yet raised the necessary funds to dole out to retailers – the only amount that the public is aware of is the $50 million that the state provided. 

So, the million dollar questions are, do these entrepreneurs take a chance to be first to the scene? Or do they trust that the money and real estate issues will work themselves out? 

It is hard to say. But what we do know is that there are new cultivating and processing licenses being secured this year as well, and a huge backlog of weed in storage, so there will be no lack of product once the doors to the public open up – right now, it is just a matter of time. 

So maybe NYC should get out of its own way, put a bit more “market” in the cannabis market, and let 1,000 blossoms bloom! 


Andrew Kaye has been involved in all aspects of the financial services industry, as a fund portfolio investment manager, investment banker, family office investor and attorney.  He has worked with start-ups on their first raise through global enterprises undertaking billion-dollar stock offerings, and has significant investment experience in the cannabis industry. Currently, Andrew works as Sweet Leaf Madison Capital’s Chief Commercial Officer. Lending his expertise toward the creation of middle market financing solutions for real estate and equipment financing needs in the cannabis space.”

“Sweet Leaf Madison Capital provides non-dilutive, asset-based lending solutions to the underserved middle market of the cannabis industry by originating real estate loans, equipment financing, securitized term loans, and more for entrepreneurs and businesses. The company is based in Denver, Colorado and has offices in New York City and West Palm Beach, Florida. To learn more or complete a loan application, visit Sweet Leaf Madison Capital online, or continue the conversation on LinkedIn, Twitter and Facebook.”

 

Andrew J. Kaye is Chief Commercial Officer of Sweet Leaf Madison Capital. He can be reached at akaye@sweetleafmadison.com.

Committee Blog: The Importance of Skilled Cannabis Accountants

by Sevana Janian, Green Plus CPA
Member of NCIA’s Cannabis Cultivation Committee

Managing finances and complying with complex regulations in the highly regulated cannabis market can be challenging for business owners. For this reason, it’s crucial to have a competent cannabis accountant. In this article, we will discuss four major reasons why a good accountant is essential in the cannabis market, grouped into distinct categories.

Mitigate the risk

Having specialized professionals, such as a cannabis accountant, can bring a wealth of knowledge and expertise to your business. They understand the unique challenges and regulations associated with the cannabis industry and can provide guidance and support to help you make informed decisions and navigate potential risks. By leveraging their expertise, you can ensure the success and stability of your business in this rapidly evolving industry.

Accountant who has experience working in volatile and new industries is well-equipped to handle the risks that come with operating in such environments. By regularly identifying and measuring these risks, the accountant can help mitigate them and ensure the stability and success of a business.

At the early stages of starting a business, it’s critical to bring on board a competent cannabis accountant and attorney. Don’t let the simplicity of creating an entity mislead you into missing out on getting proper counsel on the appropriate entity type. Stay attentive to accounting and legal concerns and make informed decisions. If the chosen entity type does not align with your business goals, a knowledgeable cannabis accountant will discuss the potential consequences of each option. This will enable you to make an informed decision.

Given the ongoing discourse surrounding entity type and its status as a commonly asked question, I deemed it worthwhile to introduce this information. It should be noted that a Limited Liability Company (LLC) is not officially classified as a tax entity by the IRS. The taxation of an LLC can vary and may be classified as a single-member LLC, a corporation, or a partnership.

One of the biggest risks in the cannabis industry is the risk of failure and the accumulation of a large tax debt. The cannabis industry is heavily regulated and taxed, which can present significant financial challenges for businesses operating in this field. In order to mitigate this risk, it is important for cannabis businesses to have a strong understanding of the tax laws and regulations applicable to their operations, and to have a robust system in place for tracking and reporting their financial transactions. Working with a knowledgeable and experienced cannabis accountant can help ensure that tax laws are applied correctly and that businesses stay in compliance with the regulations, reducing the risk of financial failure and tax debt. The establishment and enhancement of robust internal controls, coupled with diligent monitoring, can also significantly contribute to mitigating potential risks as well.

It is noteworthy that individuals who own cannabis businesses are known for taking risks. As a result, it is essential to have accountants and attorneys who are skilled in evaluating and reducing these risks. Selecting your advisory team carefully is of utmost importance.

Aligned Mission and vision

It is necessary for the business owner and accountant to have a clear and transparent understanding of each other’s needs and goals, in order to create a win-win situation. The highly regulated and complex cannabis market can be challenging, and having an accountant who is passionate and aligned with the business owner’s mission and vision can help smooth the business cycle and avoid conflicts. An accountant’s mission is to help their clients manage their financial resources effectively and efficiently. This involves tracking the financial performance of the business, providing advice on financial decisions, and ensuring compliance with legal and regulatory requirements. In order to carry out this mission effectively, an accountant needs to have a deep understanding of the business owner’s goals, objectives, and overall strategy.

When a cannabis accountant’s mission is aligned with a business owner’s, they can work together to achieve common goals. This alignment helps the accountant understand the business owner’s financial needs, which enables them to provide more targeted advice and recommendations. It also helps the business owner understand the importance of financial management and how it can contribute to the success of their business. It also helps the business owner feel more confident in their accountant’s advice and recommendations, which can lead to collaborative and effective working relationships and more successful outcomes.

Experience or training in the cannabis industry

The cannabis industry is new and constantly evolving, and it is important to have an accountant who is trained and up-to-date with the latest developments. Many CPA firms are now specializing in the cannabis industry, giving business owners more options to choose from. A cannabis accountant should be familiar with 280E of the Internal Revenue Code, which can be a monster in terms of tax for the industry. They should also have knowledge of cost accounting and inventory management, which are crucial for producing accurate financial statements. Cannabis accountants with a background in manufacturing industry can bring their expertise to the industry and be of even greater value.

The use of the word “trained” is intentional in highlighting the fact that the cannabis industry is new and constantly evolving. Even though accounting firms with decades of experience are doing their best, when they have a high volume of clients, they may not be able to provide timely service and may lack time for innovation and data analysis. There are many cannabis think-tank groups and programs that can give trained accountants the same advantages, or even more, as experienced ones, as technology has revolutionized all industries, including accounting.

Analytical Reporting 

A knowledgeable cannabis accountant should be able to provide financial statements and analyze them to help the business understand its financial position and take actionable steps towards its goals. They should be able to simplify complex financial analysis and provide key performance indicators and ratios that can help the business stay on track. They also have the responsibility of managing cash flow, which is key for the success of any business, especially in a competitive market. Many businesses fail because they run out of cash, not profit.

An insightful analysis takes the information one step further and presents the data in context in a way that identifies the necessary actions to be taken to maintain or improve the organization’s operations. Reports that allow managers to do their jobs better and make better decisions will be highly valued.

In a competitive market, the role of accountants and CFOs becomes increasingly important.

Ultimately, conducting business is a spiritual pursuit that involves the right mindset, effective communication, and teamwork. A business will flourish and make a positive impact if it brings together a team with a strong cultural alignment and a growth mindset.

We have great respect for those who work in the cannabis industry, as they often put their lives or licenses on the line. Let us strive for greater compliance and work towards creating a better world for all.


Sevana Janian is a Certified Public Accountant in California with more than 17 years of experience in tax and accounting. She is a member of the Cultivation Committee of the National Cannabis Industry Association (NCIA) for the year 2023. She is also a member of AICPA and CalCPA organizations. Sevana enjoys traveling with her family and playing the piano during her leisure time. She is committed to networking with others to expand her personal and professional knowledge. Sevana is passionate about inspiring and motivating the younger generation to succeed.

Green Plus CPA aims to offer a world-class automated tax and accounting solution nationwide for CEOs and business owners in the cannabis industry who seek accurate financial statements. Established in 2022, we are deeply interested in the medicinal properties of the cannabis plant and firmly believe in its potential to heal. We are enthusiastic about supporting and serving this industry that has been overlooked.

 

Lobby Congress with NCIA – Hear From First-Time Attendees

Spring is almost here, and NCIA’s 11th Annual Cannabis Industry Lobby Days are just two months away!

Over the past decade, NCIA members have made real, measurable progress moving the dial for cannabis policy reform. Year after year, our industry continues to gain support from members of Congress on both sides of the aisle on crucial issues like banking access, 280E reform, and federal de-scheduling.

It’s not a matter of IF, it’s a matter of WHEN and HOW. Lobby Days is YOUR opportunity to make sure federal legalization is favorable to main street cannabis.

This is the most important cannabis event of the year, so you don’t want to miss this opportunity to join your industry peers in the halls of Congress. Be sure to REGISTER NOW to join NCIA members to advocate for the issues most important to small cannabis businesses and to share your personal stories with national lawmakers who need to hear from Main Street Cannabis now more than ever.

NCIA’s 11th Annual Cannabis Industry Lobby Days

May 16-18, 2022
Washington, D.C.

REGISTER NOW

Never lobbied Congress before?
Hear from these first-time attendees of last year’s Lobby Days:

 

Member Blog: Breaking the Bad – Easy Steps to Better Secure Your Cannabis Facility – Part 1

by Kevin Hill, Spara Group

First things first, when I selected this article photo I wanted to show someone prying a back door to a business. While this illustrates the message that I’m trying to get across, cannabis burglaries do not often occur during daylight hours. In fact, it seems much more likely that this is a pic of a distressed GM who lost their badge and is frantically trying to get in the building so that they can open before their Retail Director finds out!

All joking aside, rear-door breaches account for the majority of cannabis burglaries throughout the United States. Burglars prefer this entry technique mainly due to the fact that they are much more concealed at the rear of the building than the front (streetside) portion of the structure. Having this in mind, we can literally focus on bolstering this ONE door in order to mitigate much of our overnight vulnerabilities.

Rear commercial doorways almost always come with two built-in theft deterrents, one by design, and one from just plain luck. The first being that they are mostly solid and constructed of metal, and the second being that they swing outward rather than swinging into the location due to fire egress mandates. From a breaching standpoint, it is much easier for a bad guy to force a door open by inward force (kicking, shouldering, etc.) than by prying the doorway outward. Having established this, burglars are forced to pry these doorways open in order to achieve entry.

So good news, now we have deduced not only where our bad guy is likely to come in from, we now know how they are going to do it! All we need to do now is find a product that will make a pry-fashioned entry nearly impossible. I’ll list three options with each of their respective price points and considerations.

Common Latch Guard:

A latch guard is a strip of metal that basically covers the empty space between the door and frame. This makes it much more difficult to “get a bite” with a pry tool by placing the tool in the aforementioned space. Most of these guards are 6 to 8 inches long and are placed on the area covering the area where the door latches to the frame, however, I would recommend a full-length latch guard that will cover the full length of the door. While the shorter piece may keep a villain from getting in, their attempts could damage the doorway to a point where it would need to be replaced, which leads to compliance issues and subsequently unwanted store closures. Local locksmiths will have these in stock and should be able to install them for around $500.

“Panic bar” styled exit system:

These systems are basically a panic bar on steroids. The system bolts to the interior of the door with retracting bolts that insert into each side of the door’s jamb/frame while deployed. Once the handle is depressed, both bolts retract and allow the doorway to open. These systems often come with an alarm that can be programmed to sound when opened and can also be ordered with an electrical kit that will work with your access control system. This option will cost around $1000.

“Three Point” bolting systems:

On the higher end of the spectrum are “Three Point” bolting systems. These systems incorporate a heavy latch with two additional bolts to the top and bottom of the doorway. These systems can also be incorporated into your access control system, making it possible for authorized users to badge-in from outside. These systems carry a price tag around $2,200, although they come with all the hardware needed for the door, so you are at least saving additional hardware expenses.

So there you have it, three options to GREATLY diminish the likelihood of a break-in.


Over the span of a 22-year career with the City of Tulsa Police Department, Kevin served much of his tenure as a Disaster Response Team member, violent crimes task force investigator, and homicide detective.

In 2018 Kevin retired from the Tulsa Police Department and joined Harvest Health and Recreation, a top ten vertically integrated, multi-state operated cannabis company. Kevin served as Harvest’s National Security Director until Harvest was acquired by the cannabis industry giant Trulieve in 2021. Once at Trulieve, Kevin assumed the role of National Security Director, overseeing all facets of physical security for 200 retail locations, 15 production facilities, and 11,000 employees throughout the United States.

In November of 2022, Kevin launched Spara Group, a niche cannabis consulting firm focused on offerings related to Physical Security, Compliance, and Learning+Development throughout the cannabis canopy.

Kevin maintains his residency in Tulsa, Oklahoma, where he lives with his wife Sonya.

Please give me a call at 918-809-8850 or email kevin@sparagroup.com if you have any questions.

Take care and thanks everyone!

Video: NCIA Today – Friday, March 10, 2023

NCIA Director of Communications Bethany Moore checks in with what’s going on across the country with the National Cannabis Industry Association’s membership, board, allies, and staff.

 

Member Blog: How to Navigate the Cannabis Payment Landscape in 2023

With the recent crackdown on cashless ATMs in the U.S. for cannabis payments, dispensaries have been scrambling to find alternatives to this banking system. As more consumers nowadays prefer to pay by credit or debit cards, or another form of digital payment, dispensaries must offer convenient forms of making payments to their customers. But until there is federal legalization in the U.S., the cannabis payment landscape will continue to be marred by complications. This complete guide on cannabis payment processing can help you navigate the hurdles better and set your dispensary up for success with the best digital payment solutions. But continue reading for some quick tips on handling cannabis payments in 2023. 

Reduce Cash Transactions and Risks

Cash may still be king in the cannabis industry, but it comes with many risks. And in this highly regulated industry, compliance must remain the priority for dispensaries. Cash also limits your ability to retarget or upsell to customers. By reducing cash transactions, you can avoid the following risks:

  • Cash theft by robbers, employees, or customers.
  • Mistakes in daily cash counts and accounting.
  • Inventory compliance issues due to untraceable cash.

Encourage the Use of Digital Payments

With digital payments, instant reporting capabilities give cannabis retailers a better understanding of business performance. Also, providing customers with a modern and convenient shopping experience is a competitive advantage in the cannabis industry. There are significant advantages to encouraging the use of digital payments:

  • Improved dispensary experience for customers.
  • Increased safety and security for everyone.
  • Easy Banking, Tracking, and Reporting.

Maximize the Benefits of Going Cashless

The most important benefit of going cashless is that you’ll see a massive increase in sales and revenue. When a customer is not limited by the amount of cash on their person, they always tend to buy more, and budtenders are better equipped to upsell. Most dispensaries using cashless payment solutions witness:

  • Minimum 25% increase in average transaction value.
  • Increased customer loyalty and retention.
  • Overall improved operations with data insights.

Choose a Compliant Payment Solution

There are quite a few cannabis cashless payment solutions out there, but not all can provide you with the enhanced safety, security, and compliance needed for cannabis retail. Ensure that you choose a multichannel payment solution that integrates seamlessly with your cannabis POS and complies with all laws and regulations. A dispensary cashless payment solution must offer the following:

  • PIN Debit Payment: The most compliant solution.
  • ACH Electronic Transfer: No-cost direct payments.
  • Integration with loyalty and gift card programs.

Implement Cannabis eCommerce and Delivery

To provide customers with the most convenient and efficient way to purchase cannabis products, dispensaries should also consider implementing eCommerce and delivery services. This allows customers to browse and buy products online, with the added convenience of home delivery. Implementing such services also helps reduce cash transactions, as customers can pay digitally if you have a compliant cannabis payments solution. 

  • Set up an eCommerce website by using a cannabis-specific eCommerce platform that integrates seamlessly with your POS system.
  • Use cannabis-specific delivery software to set up compliant delivery services or outsource to third-party delivery companies.
  • Dispensaries must have a robust digital payment system that complies with all regulations, which can only be achieved by using a cannabis-specific payment processing system that integrates with your eCommerce platform and POS system.

Bonus Tips

Here are a few more tips for navigating the cannabis payments landscape:

  1. Consider implementing a loyalty program to encourage repeat customers and increase sales.
  2. Ensure that your payment processing system can handle high volumes of transactions to avoid delays or downtime.
  3. Stay up-to-date with the latest regulations and compliance requirements for cannabis payments to avoid any legal issues.
  4. Offer multiple payment options to customers, such as debit and credit cards, ACH transfers, and mobile payments, to provide greater flexibility and convenience.

Conclusion

The cannabis industry is rapidly evolving, and dispensaries must adapt to the changing payment landscape to remain competitive. By reducing cash transactions, encouraging digital payments, and implementing cannabis eCommerce, dispensaries can offer customers a convenient and safe way to purchase cannabis products while complying with state and federal regulations.

Offering the convenience of digital payments increases dispensary profits, enhances the customer experience, and elevates your dispensary business beyond the limitations of cash only. With a truly transparent and compliant cannabis cashless payment solution, you can facilitate faster check-out at your dispensary with simple, frictionless, and secure digital payments. Dive into Cova Software’s free cannabis payments processing guide to learn more. 


Gary Cohen is the CEO of Cova Software, the fastest growing technology brand in the cannabis industry. Cohen’s focus has been driving the company’s overall strategy, including its vision, go-to-market plan, and strategic development. Since joining the cannabis industry in 2016 and launching Cova commercially in 4q17, Cohen has led Cova to dominate the enterprise sector for dispensary Point of Sale, while forging client relationships with hundreds of single-store retailers across North America.

With Cova’s cannabis POS and its excellent integrations with eCommerce and delivery services, the online order automatically pops up for the budtender to tender the sales, and the POS system updates inventory once payment is approved. Cova offers multiple eCommerce solutions to choose from, as per your needs and budget, and you can legally sell cannabis online stress-free while staying compliant with strict government regulations.

Update from NCIA’s Diversity, Equity, and Inclusion Program

by Mike Lomuto, NCIA’s DEI Manager

Our DEI Program has a lot to share and celebrate as we gear up for Spring, when we hope to hit the road with our Equity Workshop Tour.

Keep reading for all the highlights and wins to start 2023.

But first, I want to remind you that today is the LAST DAY to throw down sponsorship dollars as part of our Lobby Days DEI Delegation.

ALL Lobby Days sponsorship dollars raised during the month of February directly fund our DEI Delegation

This allows us to provide travel stipends as part of our commitment to DEI at NCIA. Our delegation consists of some of our organization’s most engaged and knowledgeable social equity policy advocates.

This is one of NCIA’s most important functions. It’s imperative we get it in the win column so that our report back in May/June’s newsletter is one of success for our DEI efforts. 

Reach out NOW to MikeLomuto@thecannabisindustry.org to help us reach our goal.


February Highlights of our DEI Program:

NCIA’s Global Majority Caucus Launches

February marked the momentous launch of NCIA’s Global Majority Caucus

Made up of Global Majority leaders from across the organization – Board Members, Committee Leadership, Equity Members serving on committees, and leaders of DEI Program initiatives.

The purpose of the GMC is to galvanize our Global Majority voices and impact at the nation’s oldest and most established cannabis trade association. 

I am humbled by the voices that were present last week and completely inspired by what we will continue to accomplish together.

Together, we will continue to advocate for greater Diversity, Equity, and Inclusion in our industry as we push toward federal legalization, and the more equitable rollout of the myriad of state cannabis programs.


Season 4 of The Cannabis Minority Report podcast kicks off.

Bringing minority (aka Global Majority) perspectives to the forefront of the industry

Join us for the live recordings every Monday at 1 pm ET on LinkedIn Live

Subscribe on your favorite podcast platforms, and catch up on the first few episodes of the new season, featuring NCIA Board Vice Chair Chris Jackson, NCIA Board Member Rebecca Colett of Calyxeum, and Dr Mila Marshall (Vice Chair of the Education Committee)

Upcoming guests include:

  • NCIA Board Member Ben Larson of Vertosa, Chris Jensen and Tiffany Watkins (DEIC Chair and Vice Chair), Kay Villamin (SRC Chair), Keyston Franklin (BFSC Chair), and Michael Webster (host of the Power Hour)

February featured TWO Catalyst Conversations (our DEI-focused webinar series)

Catalyst Conversation: Gain an Edge & Impact – Community Benefit Agreements

Featuring Gary Little and Doug Kelly, who are blazing trails in Chicago, alongside NCIA committee members Ace Castillo and Shannon Vetto

For cannabusinesses looking for how to “crack the code” of doing well AND good. We discuss how to create positive community impact AND excel as a business as a result

Catalyst Conversations: What’s Hot for 2023?

Featuring NCIA Committee members Vanessa Valdovinos, Keyston Franklin, and Jim Makoso, as well as new Board Member Amy Larson

Especially relevant for newer leaders in the cannabis space, seeking insights into how to succeed and gain lasting power, based on the opportunities 2023 presents.


New York Social Equity Roundtable Submits Public Comments, co-signed by a dozen partnered organizations

Since Spring of last year, we have been building coalition through conducting an ongoing roundtable discussion, consisting of multiple National and New York based cannabis social equity and industry organizations to assess and provide feedback regarding rules and regulations. Big thank you to the participating orgs, including: Minorities for Medical Marijuana (M4MM), Social Equity Committee Co-Chairs of NYC/Hudson Valley Cannabis Industry Association (NYCCIA/HVCIA), NYC NORML, Black and Brown Economic Power in Cannabis (BB EPIC), JustUS Foundation, Unified Legacy Operators Council (UNLOC), Minority Cannabis Business Association (MCBA), Social Equity Empowerment Network (SEEN), The Hood Incubator,The People’s Ecosystem (TPE), Etain, legacy operators, and social equity cannabis business owners. 

On February 13th, we submitted our latest round of public comments, in a common effort to assist the New York Office of Cannabis Management in its mission to create an equitable and inclusive cannabis industry for New York State.

DEI Committee leader Raina Jackson served as Lead Author, with support from fellow NCIA committee members Mark Slaugh, Adrian Adams, Stephanie Keeffe, and Osbert Orduna.


Get a glimpse into the impact our Equity Scholarship Program is having

The first Equity Member Spotlight blog of the year is up! 

“it isn’t hard for me to find a BIPOC leader within NCIA who shares experiences similar to mine. That has made this a motivating and pleasurable experience.” 

– Michael Diaz-Rivera, Owner of Better Days Delivery; Colorado State Rep of M4MM

The Equity Workshop Tour is tentatively (based on sponsorship) set for stops in New York, Chicago, and Detroit, synced up with our Industry Socials. More to come. Sponsorship opportunities are available.

To join NCIA through our Equity Scholarship Program, apply here:
https://thecannabisindustry.org/ncias-social-equity-scholarship-program/

New NCIA Member Benefit – Save Money On Credit Processing

As the only full-service trade association in the industry, our members enjoy unparalleled ROI and benefits to help them thrive in an increasingly challenging environment.

We’re pleased to announce that we have added a brand new benefit to help you save money. In this environment, every dollar counts and that’s where our new member benefit partner comes in.

Given the state of business, we are all looking at ways to better position the profitability of our companies. Merchant Advocate (MA) for over 15+ years has helped thousands of merchants in a variety of industries including retail merchants, manufacturers/suppliers, business-to-business, internet companies, etc. MA has saved clients over $300 million dollars in erroneous credit card fees, coding errors, and inflated rates. 

Merchant Advocate is the leader in auditing the unregulated credit card processing industry. They have helped us save significant amounts of money on our processing fees and we’d like you to have the same opportunity to benefit from their services.

NCIA Members receive a free consultation and an exclusive discount on services.

Merchant Advocate will help you navigate through the complexities of accepting credit cards, adding money straight to your bottom line, without switching processors and with no upfront costs! They don’t get paid unless you save. Merchant Advocate will provide NCIA members with a FREE ANALYSIS on the health of your account.
Merchant Advocate helps businesses save money on credit processing, WITHOUT SWITCHING PROCESSORS!

Merchant Advocate will:

✔ – Negotiate lower rates
✔ – Eliminate hidden fees
✔ – Fix coding errors
✔ – Monitor your account every month

 

Merchant Advocate is NOT a credit card processing company. MA’s approach to payment processing is VERY DIFFERENT than a traditional payment processing company that wants to SWITCH your merchant services business. MA is NOT suggesting that any company change from their merchant services’ processor. MA is an “expense auditor” company that partners with clients and helps to expose the hidden and excessive fees that are not transparent in the unregulated credit card processing industry. MA uses a three-step process without changing your systems1) Analyze: Merchant Advocate will review your statement at NO charge to uncover inflated rates, hidden fees, and any coding errors. 

2) Adjust: Merchant Advocate will negotiate with the processors on your behalf to reduce your rates and eliminate hidden fees. 

3) Audit: Merchant Advocate will monitor your statements monthly to watch for rising rates and additional fees to ensure savings throughout the year. 

LEARN MORE TODAY

Committee Blog: NCIA Committee Work Provides Lasting Value To All – A 2022 Highlight Reel

by David Vaillencourt, The GMP Collective
Facilities Design Committee Chair

NCIA Committees are one of the easiest ways that NCIA enables its members to make a positive impact on the cannabis industry. The Facility Design Committee is one of fourteen (14) committees. We are all member-led, meeting monthly (if not more frequently) to discuss needs and to work together to create resources for the community and industry at large. This translates into blogs, webinars, and more. As the new Committee term gets underway, this article provides a recap of our 2022 term. Who are we? What did we accomplish? How can you as an industry operator or NCIA member leverage these resources? Read on!

“As the outgoing Chair, it was an honor to work alongside over a dozen experts ranging from business management solutions, architects, engineers, construction companies, quality management experts, equipment vendors, and more. I want to thank each and every one of you for your tireless contributions.” – David Vaillencourt, The GMP Collective

Accomplishments and key member takeaways

Now entering our fourth year, the FDC put together a significant amount of content for the industry to utilize. I have highlighted the top three impacts that our Committee felt we made. Seeing busy industry pioneers put aside valuable time in their days to consistently show up and create this content for the betterment of you all was a rewarding opportunity in itself and it’s impossible to do justice and recognition to the hours contributed by all.

“The knowledge and energy that is gained from this collection of experts who all have one overriding goal to advance cannabis as an industry both educates and motivates me…  The cannabis industry evolves extremely rapidly, by participating in NCIA committees you ensure that you do not get left behind and you have an opportunity to shape the future of cannabis.” – Cary Richardson, Miles Construction

What is VPD / HVACD and why should you care?

Understanding plant dynamics and how they impact the selection and sizing of HVAC systems is critical to the cannabis cultivation space. The design assumptions and directions made during early planning will impact plant quality, quantity, operational costs, and energy expenditures for the life of the facility.  It should not be surprising to owners and shareholders that if the first steps of design are made incorrectly, costs to correct original mistakes may exceed the original project budget, and oftentimes that may be too late. It is easy to get lost in the technical details on paper, but our members broke this important topic down for decision makers to better understand in our blog article and webinar “WTF is VPD” (available for free to watch on demand!).

“The details of HVACD get lost at times on me and [Adrian and Kevin] can explain it in a way, that a layman can understand it. David, Brian, and Sean are the other members who are always showing up, we meet at events and they have valuable input on topics of the FDC. We all connected outside of the FDC multiple times and are working on common business opportunities.”  – Chris Uhlig, Ceres Greenhouse Solutions

Social Equity is a major problem

Mike Lomuto who led NCIA’s Diversity Equity and Inclusion Committee met with Shawn Cooney, our Vice-Chair early on to discuss sustainability and DEI issues in the space. Social equity applicants have so many additional hurdles that the FDC members prioritized how to steer our knowledge to solve real problems social equity applicants face. During several of our meetings, we invited a social equity applicant to share where they were stuck. They benefited from having a team of experts to listen, understand their problem, and offer direction and guidance. 

“The most meaningful thing that occurred [for me] was participating in a hot seat with a social equity license recipient…  We followed up with this individual and it led to us becoming more educated and aware of the issues surrounding social equity in the cannabis industry. Unfortunately, what we uncovered wasn’t that great. Social equity programs in several states are fraught with issues and there are often firms who are preying upon vulnerable people… I have a whole new sense of awareness. It’s opened me to educate myself and others as well.” – Eric Myers, COO, Omega Equipment Supply

But don’t take our word for it – hear it from one of our “hot seat” guests who came to us after having multiple setbacks getting their design plans for a dispensary approved by the city. 

“Prior to our meeting with the Facility Design Committee, we had experienced so many setbacks. After my hotseat with the FDC, we were able to identify what we did wrong and why we were having so many delays with the city. [The FDC members] helped us prioritize what steps we needed to take to get our project back on track… We redesigned our floorplan and now we are closer than ever to getting our building permits. We are back on track and I am even more confident in our plan all thanks to the Facilities Design Committee.” – Adolfo “Ace” Castillo Founder/Chief Operating Executive Banyan Tree Dispensary

Networking 

Not only do we meet monthly virtually, enabling volunteers from Maine to California and everywhere in between to connect and share knowledge – but many of us made time to connect in person to speak on panels and support each other throughout the year. While the pandemic wreaked havoc on conferences and in-person events, we were able to build lasting relationships thanks to the Committee structure.

“The most impactful aspect of this year was getting to know members at an individual level” – Kevin Quinlan, Mintropy

From left to right Jon Crozier, Chris Uhlig, Adrian Giovenco, Eric Myers, David Vaillencourt, and Cary Richardson all met up in person at MJBiz Con.

Looking forward into 2023

Stay tuned industry! Bookmark NCIA’s Blog page, and subscribe to the newsletter so you can take advantage of the latest webinars and resources published by the FDC and the other NCIA committees. The pathway to a harmonized and equity industry may seem daunting and far away, but rest assured that the hundreds of NCIA members participating in the diverse Committees are working hard to divide and conquer for a unified mission.

Equity Member Spotlight: Checking in on NCIA’s Equity Scholarship Program

by Mike Lomuto, NCIA’s DEI Manager

Three years after the launch of NCIA’s DEI program, we are growing and going stronger than ever. One of last year’s highlights was our DEI delegation that took part in our 10th Annual Cannabis Industry Lobby Days in Washington, D.C., a story we told in this blog, along with many other great and important stories. Now, we are checking back in with a few members to hear about their current progress. 

Why has being a member of NCIA been important to you personally?

Anthony Jenkins, Next Level, CEO:

Cannabis is an amazing plant, and I’m passionate about what it can do. NCIA’s members share that passion, which shows in their advocacy for themselves and the plant.

Michael Diaz-Rivera, Better Days Delivery, Owner/Operator:

I was a 5th-grade teacher before starting this business. Being a member of NCIA has allowed me to network with a diverse set of owners across the business spectrum, whether they are social equity operators, and/or novices like me, or established in the cannabis space for years. NCIA has helped springboard me into spaces where growth is guaranteed!

Helen Gomez Andrews, Co-Founder & CEO, The High End:

Building strong business networks is incredibly important in the cannabis industry – and of course, so is advocacy. With this industry and through communities like NCIA, we have an opportunity to reimagine and restructure how business gets done, what board rooms look like, how workers are treated, how to better respect our environment. Being a member has not only helped me strengthen those networks and provided new business opportunities, but it has provided me more channels towards the advocacy that is meaningful to me and my business’ core values. 

Why is the Equity Scholarship Program at NCIA important?

Anthony Jenkins:

It is EXTREMELY important because most new entrepreneurs don’t have the money to “test” if a program is going to be beneficial for them. The scholarship gives future cannabis business owners a chance to see the true value that comes with being a member, and once they do, they will continue their membership. 

Michael Diaz-Rivera:

Coming from a low-income background and already investing my limited savings 100% into my business, I wouldn’t have been able to participate in NCIA without the scholarship. Not being hindered by my lack of financial resources helped build my confidence in the industry.

Helen Gomez Andrews:

As the founder of a start-up in a regulatory and capital environment with tremendous constraints, the Equity Scholarship Program got me in the door at NCIA, where I otherwise wouldn’t have joined due to the standard price tag. I’ve had a chance to share in, and contribute to, the many different avenues of participation that NCIA offers, make a proper assessment of its impact and properly decide whether or not it makes sense to continue as a member beyond the scholarship period.

What has been your biggest highlight of being an NCIA member?

Anthony Jenkins:

My biggest highlight of being an NCIA member was attending the NCIA’s San Francisco conference in 2021. It was an amazing experience, and we had the opportunity to have a booth, hosted by the awesome team at The People’s Dispensary.

Michael Diaz-Rivera:

My biggest highlight has to be our weekly power hours. Whether learning from industry leaders or having real unapologetic conversations with other emerging business owners, I am walking away from these meetings with priceless jewels of wisdom.

Helen Gomez Andrews:

There are so many! But bringing my kids down to Washington, D.C. for Lobby Days in 2022 was such a highlight. My daughter, who has been a cannabis patient since she was 6 years old, watched as I took a team photo in front of the United States Capitol with a group of people that came together to fight not just for SAFE Banking, but for the federal legalization of a medicine that she uses daily – fighting for her rights and kids just like her – is a moment that our family will never forget.  

Have you noticed a shift in Diversity, Equity, and Inclusion at the NCIA since you joined, and if so can you elaborate?

Michael Diaz-Rivera:

I don’t know if I’ve been in NCIA long enough to notice a shift in DEI, but I can say that it isn’t hard for me to find a BIPOC leader within NCIA who shares experiences similar to mine. That has made this a motivating and pleasurable experience.

Helen Gomez Andrews:

I haven’t been a member long enough to notice a shift, but the diversity of the community was noticeable and very appreciated from the onset, and it’s very tangibly not just a talking point. 

What is on the horizon for your business in 2023?

Next Level Edibles

Anthony Jenkins:

Next Level has some great things on the horizon. We entered into a partnership with a team in Southern California that will help us increase the quality and efficacy of our infused brown sugar. We are growing our partnerships with dispensaries and delivery services throughout California to broaden our footprint. We are relaunching our website. We will be launching new infused ingredients, and partnering with some of our friends in the industry to bring you amazing infused ready-to-eat products. 

Michael Diaz-Rivera:

There is much to be anticipated in the near future for Better Days Delivery and that is why we say, “Better Days Are On The Way.” Most immediately I am excited to announce that I am hiring my first delivery driver and adding more vehicles to my fleet. As I aim to be the best cannabis delivery service in Colorado, I am working to establish contracts with dispensaries throughout the state, nurture the stores I currently deliver for (Shoutout to Native Roots and L’Eagle Services), empower my drivers to be their best, all while serving the community!

Helen Gomez Andrews:

At long last, The High End is on track to introduce our clean-extracted and hand-crafted cannabis products to the Massachusetts market, partnering with independent sun-grown and living soil cultivators and processing in our solventless lab. Our indoor living soil gardens are finally in development too and will be ready to go closer to the end of this year. 

Additional thoughts?

Michael Diaz-Rivera:

Thank you Tahir Johnson for starting this program and Mike Lomuto for taking it to the next level. Infinite gratitude to all of my fellow business owners that have helped me to get to this point in my business journey! The Marathon Continues! Better Days Are On The Way

Helen Gomez Andrews:

Immense gratitude to Mike Lomuto for understanding each of our goals in business and advocacy, and ensuring we can contribute to issues that matter to us beyond the obvious DEI work. Without question, DEI advocacy is vital, but we amongst the equity scholars have a diversity of other goals as well. In particular, I’d like to thank Mike for championing Sustainability and organizing a group of members from a working group into an influential body within NCIA that has an opportunity to make a meaningful impact.

Video: NCIA Today – Thursday, February 9, 2023

NCIA Director of Communications Bethany Moore checks in with what’s going on across the country with the National Cannabis Industry Association’s membership, board, allies, and staff. Join us every other Thursday on LinkedIN for NCIA Today Live.

 

 

 

 

Bills in Congress, SAFE Banking, and House and Senate Committees

by Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations

While it got off to a slow start, the 118th Congress is finally in full swing. Let’s take a look at some of the latest cannabis and government relations news coming out of Washington, D.C.:

Bills are being introduced

When a new Congress begins, all legislation from the last session must be re-introduced and start from scratch again in the legislative process. Over the last few weeks, a couple of cannabis bills have been reintroduced: two from Congressman Greg Steube (R-FL) and one from Congressman Alex Mooney (R-WV). 

Rep. Mooney was the first to introduce a cannabis bill for the 118th Congress when he released his Second Amendment Protection Act. Last Congress, a similar bill was filed by the late Rep. Don Young (R-AK) known as the Gun Rights And Marijuana (GRAM) Act. The full text of the new measure is not yet available so it’s unclear what exactly the bill contains, but advocates expect the bill to be similar to the version Mooney introduced in the 116th Congress. Interestingly, although federal law explicitly prohibits all Americans who consume or possess marijuana from purchasing or possessing a firearm, a judge in Oklahoma late last week declared that ban unconstitutional.

Congressman Steube’s two bills were the Veterans Cannabis Use for Safe Healing Act and the Marijuana 1-to-3 Act. The former prohibits the Department of Veterans Affairs (VA) from denying a veteran any VA benefit due to participation in a state-approved marijuana program. For veterans participating in these approved programs, the VA must ensure its healthcare providers both discuss marijuana use with such veterans and adjust treatment plans accordingly and record such use in the veterans’ medical records. The latter bill, the Marijuana 1 to 3 Act, has been introduced by Rep. Steube in past sessions and seeks to do exactly what the title says: reschedule cannabis to Schedule 3 – a reform that would not resolve the federal conflict with the vast majority of state laws with some form of legal cannabis 

A SAFE Bet?

The cannabis industry may have been devastated when Congress failed to pass the SAFE Banking Act last Congress, but we’re not giving up yet! Congressional champions have every intention of reintroducing SAFE in both chambers, but don’t expect the bill to look identical to last session. 

Last week, Senate Majority Leader Schumer held a closed-door meeting with a number of other Democratic Senators to discuss what’s next for the bill. Reportedly, the Senators discussed changing the text of the bill to reflect some of the “SAFE +” language that was negotiated at the end of 2022, including the HOPE Act. It’s currently unclear if the House’s version will be identical.

Committees Finally Seated

It took Congress longer than usual to seat committees this session – particularly in the House – but we now know which members will have jurisdiction over which issue areas. Our friends at Politico put together an extensive list, but some committees I’ll be keeping my eye on include the House Judiciary Committee, the Senate Banking Committee, and the Appropriations Committees in both chambers. 

Stay up to date on the latest congressional cannabis policy by following NCIA on social media, subscribing to our newsletter, and attending one of our upcoming regional events

Member Blog: 2023 Retail Dispensary Design – Three Ways To Layout Your Space

by Melinda Yoo, Sungrown Studio

Dispensary layout plays a huge role in not only how the space will function from an employee and security point of view, but even more importantly, how your customers view their shopping experience with you and how your brand speaks to them. The way your dispensary looks matters and is often a key factor in boosting sales and standing out from your competition. 

The dispensary floor plan you land on ultimately drives sales, tech application, experience, and employee retention. It is crucial to totally understand the three types of layouts, how they could work (or not work) for you and then how to implement them. Your end goal is always a positive customer experience, and state/local compliance. Not all states or municipalities allow all three of these models, so make sure you are aware of your regulations before dive too far into space planning. 

Let’s review the three main types, pros and cons of each, how each specific layout drives customer experience, and how tech is integrated. 

The Bank Layout 

The bank dispensary layout is super common, and has a few easy-to-identify features. Picture your local bank and you’ll likely understand the flow. Your customer enters through a secure entry and waiting room. The product is neatly tucked into individual budtender stations, each with its own POS. This means that the customer is prompted to an open station, selects products, fulfilled right there by the budtender. Each budtender manages and reconciles their own inventory and till. The customer exits through the same door they entered, or a separate man-trap exit. The bank model can be a great shopping experience for the customer because they do benefit from a 1:1 budtender experience. Products are suggested and recommended, a trusting relationship is built and the shopping journey is both easy and personal. Tech is replicated at each identical station and any countertop display is also repeated. All product is securely stored behind glass. 

Bank models do require custom case fabrication on the casework as well as behind-the-counter wall display. Your measurements will be unique to your space as well as your finish type, lighting, and branding. 

The Pharmacy Dispensary Design 

We are seeing more and more of the pharmacy layout because it offers great inventory advantages and customer shopping experience. In this layout, the customer walks in through a secured waiting area just as they did in the bank model, but upon entering the sales floor, they are able and encouraged to wander a bit. Budtenders meet them on the floor with digital shopping carts. Once the customer is done shopping, the employee completes the sales transaction and the order is fulfilled in the back of the house. The guest then reviews their order with another employee at the pickup counter and exits through the same door they entered, or a secured exit. This model works well for a few reasons. Inventory control as mentioned, but also specialized employees. You will have some employees trained specifically in selling and customer service and separate employees trained on cash handling and product review. Tech will speak to each other, the orders sent to the back of the house for fulfillment (think like a restaurant). Our example above is actually a hybrid model. In this location, the employees behind the cash wrap fulfill the order as well as take payment. The customer experience is great, they have more interaction with product and merchandise. It feels a little more like shopping freely, but very secure. 

The Open Retail Model Dispensary Design 

An Open Retail dispensary plan is really what we see in a true ‘Apple store’ layout. It is by far the most interactive, but also holds the highest operating costs. Many experiential dispensaries use this model, or a hybrid version of it. The customer will enter and provide ID, then freely wander through the sales floor. Dummy product (empty packaging for security reasons) is displayed, or products are in locked cases. They will fill a virtual shopping cart which is checked and entered by a budtender on the sales floor and filled back of house. Inventory is centrally located in the back of the house and managed. The guest pays at a central cash wrap area and the budtender meets them to review their purchase. This model is fun and interactive, but also requires more employees than typical to care for each guest. Security systems in place are also a cost factor, since you will likely require far more camera angles and security staff. From a customer point of view, this really is the most premium experience and can lead to high sales. You will be able to facilitate the impulse buying process easily. 

A few takeaways on the three types of dispensary layouts. First, every single one of these dispensary layouts can be done in any amount of square footage. You don’t need a massive open space to make any of these super functional and beautiful. All of these can be done successfully in any budget level if you have access to the right sources. If you’re trying to decide on a layout, remember the key components of each. How many employees will I need? How are inventory and fulfillment managed? Can my budtenders handle sales and cash transactions? What experience is my customer used to and what experience do I want my employees and guests to have? Is it compliant in my state? And last, if you love parts of one model and parts of another, each layout can be designed in a hybrid way to retain the best features that work for your unique brand. 


Melinda Yoo designs innovative, profitable and award-winning cannabis retail dispensaries across North America. Her work is inspiring, her clients are notable and her vision for the cannabis industry is unparalleled. She leads her team thoughtfully through the creative and technical processes of creating unique retail experiences that are both jaw dropping and profitable. 

After over a decade at a traditional, residential interior design firm in Chicago, Melinda followed her curiosity to retail interior design and merchandising. She quickly fell in love with dispensary design and all the quirks and challenges that go with it. 

Since then, she has grown and led Sungrown Studio, received press recognition with her magazine-worthy retail environments and thought leadership. Sungrown Studio was named Dispensary Design Master 2022 by mg Magazine. Melinda continues to design amazing retail stores that reflect her clients values and brand. 

When she’s not leading her kickass team, you can find her spending time on the hiking trails with her dog or raising her three little humans. 

NCIA Best of 420 CLIO Cannabis Award Returns for 2023

The cannabis industry’s most accessible award program returns in 2023. A coveted award by brands and creatives alike, NCIA Best of 420 Award sets the standard for top creative work highlighting this important holiday and the biggest day in cannabis.

When launched in 2021, the NCIA Best of 420 Awards was a digital event for NCIA members highlighting each brands marketing efforts in a very challenging year. In 2022, the Best of 420 Awards partnered with the prestigious Clio Cannabis Awards – live in Las Vegas. What a thrill to showcase the NCIA Best of 420 winners alongside the industry’s most prestigious creative work. 

For the cannabis community, by the cannabis community, the award program, wholly conceived and executed by the NCIA’s Marketing and Advertising Committee volunteers, is a labor of love that celebrates the most impactful 420 marketing work in the industry.

seen at Clio Cannabis Awards at Thursday, Sept. 29, 2022, in Las Vegas. (Photo by David Becker/Invision for Clio Cannabis Awards/AP Images)

“The Clio Cannabis Awards presentation during MJ Unpacked was a 2022 highlight for Claybourne Co., it made the sweet success of our 420 campaign even more special. The award brought the internal team together, made our external partnerships stronger, and created free awareness! It’s a great cannabis industry event, and we’re proud to be a recipient.” said Jonathan Griffith, VP of Marketing for Claybourne Co

Any brand with a 2023 420 campaign is eligible, so now is a great time to start planning for success! Entries will be judged on the following criteria: 

Community Impact: How did your campaign bring your community together? How did it highlight the best of the cannabis community to others? Did it support an advocacy campaign such as DEI, or sustainability?

Creativity: How creative was your overall 420 campaign? 

Results: Was it an effective campaign for your own goals and KPIs? 

It’s never too early to start planning your 420 campaign! Stay tuned for more information about how to enter the NCIA Best of 420 Award program! 

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Cannabis Community Marketers – as you form your Best of 420 Campaigns, the NCIA Marketing & Advertising Committee provides these: 10 Tips for Winning Campaigns.

Tip #1: Build campaigns with end goals and metrics in mind. What gets measured gets done. Be ready to report on metrics for your submissions even before you start your campaign. 

Tip#2: Be authentic and personable. The most successful cannabis brands show their authenticity and personality. Campaigns celebrating the audience /community as much as they do the brand tend to resonate best!

Tip #3: Collaborate and be creative. Campaigns are great opportunities to collaborate within or outside the cannabis community and gain exposure in each other’s networks.

Tip #4: Think beyond the campaign date. You can start a campaign anytime they can be tied to the 4/20 event, before or after.

Tip #5: Apply a 360-degree approach. Where possible and where budget allows, include as many channels and assets as possible for the best ROI and impact. 

Tip #6: Engage your community. Great cannabis brands are constantly looking forat ways to engage in deep, lasting relationships with their communities. 

Tip #7: Success at all budgets. A campaign does not have to have a big budget, and often the best campaigns are executed on smaller budgets. Focus on 1-2 applications of your campaigns that are better for your KPIs.

Tip #8: Tap into customer passions. Don’t be myopic and see this as an opportunity to tap into the full range of your customers’ interests and what is meaningful to them. This is about relationship building, and you want to see the customer’s lifetime value improve year after year. 

Tip #9: Remember those regulations. A reminder that it is not just the general cannabis federal and state regulations but also the marketing and communications regulations in states and across the country that provide guidelines. Be creative within the legal boundaries.

Tip #10: Have fun!

Committee Blog: VPD Topics for Cannabis Cultivation and Opportunities to Reduce Facility Energy Costs

by NCIA’s Facilities Design Committee

Indoor cannabis cultivation facilities are complex environments, where a large number of variables interact to create an ideal ecosystem to grow cannabis. The upside of an indoor facility is it allows a year-long growing climate, optimized for each stage of the plant grow cycle. The downside, however, is creating this ideal climate is very energy-intensive.  

There are three (3) main types of precision cooling equipment offered in the cultivation space. Those are Air Cooled DX, Water Cooled DX, and Chilled Water Units. DX stands for direct expansion systems. The immediate and most noteworthy difference between these systems is that DX units cool air using refrigerant, and Chilled Water units cool air utilizing chilled water. A DX unit uses refrigerant-based cooling and cools indoor air using a condensed refrigerant liquid. Typically, the decision regarding which cooling source is better for a cultivation facility is usually driven by the size of the cooling plant as well as other unique site conditions. Selecting the right HVAC system for your cultivation facility can be a challenging process driven by many factors, however this is beyond the topic of discussion for this article, it should be noted that the following analysis assumes an Air Cooled DX based system.

The total energy costs for indoor cannabis grow operations typically vary between 25%-50% of total operating costs (or approximately 150-200 kWh/sq.ft). In comparison, energy use in a typical commercial building environment is approximately 25 kWh/sq. ft. As indoor cultivation facilities increase, they can be a source of strain on electrical grids. A recent study showed indoor cannabis cultivation alone accounted for 4% of the energy grid usage in Denver. (IEEE, 2020)

With that context, any areas we can identify to improve energy efficiencies without introducing a negative impact to the grow environment can have enormous bottom-line impacts for cultivation owners and society at large. 

In this article, we are going to be examining two ways we can optimize HVACD systems to improve energy efficiency. When HVACD systems are designed for grow facilities, the primary variables we are looking to influence are the following psychrometric properties: temperature (either wet or dry bulb) and relative humidity. Mechanical engineers will often refer to an information-packed graph called a psychrometric chart shown below.

 

This chart helps to visualize the relationships different properties of air like temperature, humidity (relative and absolute) and dew points along the saturation curve have with each other. This is useful to analyze, as these are direct inputs to a scientific measure often favored by growers called Vapor Pressure Deficit (VPD).

Vapor Pressure Deficit, simply described, compares these variables to determine how much additional room for water vapor there is in the air. This is important as it determines how readily cannabis plants can transpire. Controlling transpiration rates help to aid in healthy, robust growth through the plant life cycle. Growers tend to want lower VPD, and thus lower transpiration, early in plant maturity, and increase to higher VPDs, and thus high transpiration, at the flowering stage before harvesting.

 

So we know a successful indoor cultivation facility HVAC system will need to control temperature and humidity to ensure the desired VPD values. How can we do that efficiently?

Stand-Alone Dehumidifiers Are Inefficient

A cannabis plant can transpire up to 99% of the water absorbed through its roots. Due to this, we often tell people that designing an indoor cultivation facility is like designing a data center with a swimming pool inside. Because of the increased humidity introduced from plant transpiration, we must pay special attention to dehumidification strategies within the grow space. Humid air requires treating significant latent loads in the grow space, requiring additional energy to remove moisture from the airstream. This is one reason HVACD systems can consume up to 50% of the energy budget in a cultivation facility. As previously mentioned, higher humidity levels will lower the VPD in the room, preventing a plant from transpiring effectively to continue healthy growth. To combat this, sometimes stand-alone dehumidifiers are added into the grow room.

While these units can do the job of removing moisture from the room, it is a very energy-intensive process. One of the issues with stand-alone dehumidifiers is that they reject heat back into the grow room, thereby adding additional cooling load onto the main HVAC equipment. 

Integral Hot Gas Reheat System

An air handling unit, sometimes called an air handler or AHU, is a piece of equipment that is used to condition and circulate air as a component of a heating, ventilating, and air conditioning system. 

The air handler is usually a large metal box that contains a blower, heating and cooling elements, filter chambers, sound attenuators, and dampers. It then connects to ductwork that distributes the conditioned air throughout the space before returning it back to the AHU.

Of particular interest are the units cooling coil and reheat coil. These two components are namely responsible for controlling VPD levels in our grow space. In an AHU equipped with Integral Hot Gas Reheat, the cooling coil serves as a dehumidifier, by cooling the air thereby reducing its moisture/latent load (we recommend considering capturing this water for treatment and reuse: read more here). The hot gas reheat capability utilizes heat from grow space and compressor heat to reheat the air before returning to the grow space (without using additional heating energy).

While this may seem like a minor design change, it results in a considerable reduction in energy. As the chart below illustrates, leveraging Integral Hot Gas Reheat units can result in a 30-35% reduction in HVACD energy when compared with other dehumidification systems. Additional automation capabilities built-into these systems will ensure that the grow room will remain tightly controlled within the desired state points of your grow room to optimize VPD.

 

This reduction in energy quickly adds up to reduced utility bills. Despite marginally higher upfront costs as compared to standard HVAC equipment coupled with standalone dehumidifiers, this option results in a lower 5-year system cost than common HVACD systems installed in cultivation facilities, and these savings will only increase over time.  

Maintaining Consistent VPD, but at higher Temperature / Humidity Ranges

The second energy-saving measure we would like to discuss goes back to the earlier discussion of VPD. Recall the equation for VPD is

V P sat – V P air = VPD

This is important, as it provides growers the flexibility to fall within desired VPD ranges, but at higher temperature and humidity ranges than typically used. Many growers target grow room setpoint temperatures around 72-75F and limit relative humidity to a maximum of 50 percent, but by allowing slightly higher room setpoint temperatures of 76-82F, with corresponding relative humidity increases, we can create identical VPDs at higher setpoint temperatures. The cost-benefit of this small adjustment is considerable. The HVAC system (including cooling and dehumidification) can be sized at roughly 20-30% smaller capacity, reducing the owner’s up-front equipment costs. In addition, the system’s energy consumption and costs during operations will be significantly lower, to the tune of 30-40%. In a theoretical 30,000 square foot facility, this could result in $1,125,000 savings in the first 5 years.

 

The case for a hybrid greenhouse, using VPD controls

Another way of growing instead of full indoor, is a highly efficient, sealed greenhouse. It is designed to maximize sunlight inside the growing environment, meaning energy used for lighting is dramatically reduced. And because it is sealed, energy-efficiency is maximized, as leakage is kept to a minimum. In order to make this work, these greenhouses need to be hybrid (using insulated walls and glazing) and the orientation and design play a bigger role.

In this hybrid greenhouse environment, the growing space typically heats up as soon as the sun comes out, no matter the outside temperature. Cooling in this instance would increase the power usage vs. increasing the humidity to keep the VPD level in the same range. When the sun goes down, the opposite happens. The grow environment starts to cool and it would be expensive to try and keep the temperature up. 

In order to achieve VPD control, the control system needs to be able to variably adjust temperature and humidity, based on inputs like weather forecast, time of the day, day of the year, etc. Being able to control the grow environment by VPD level will significantly reduce the energy consumption for your HVACD system.

 

Member Blog: The Importance of Genetic Studies for Identifying Plant Mutations

by Angel Fernandez, Joselyn Guadamuz, and Maria de Catarina of MyFloraDNA

The cannabis industry has experienced significant growth in recent years, highlighting the importance of quality control measures. One of them is the utilization of laboratory partners to ensure the genetic integrity of the products. However, the connection between cannabis and genetic studies is often underappreciated.

A genetic study or test is a type of analysis that is carried out on a tissue or cell to search for essential traits in the genetic material of the plant. The results obtained from these analyses can provide a lot of information that helps confirm or refute many theories.

In recent years, genetic studies of cannabis have played a crucial role in the industry by providing growers with more advanced tools and techniques. These studies have enabled growers to improve crop yields by identifying key traits and characteristics for reproduction. Furthermore, genetic testing has been instrumental in quickly and effectively detecting diseases that affect crops and identifying the gender of the plant well in advance of flowering, thus saving growers time and resources.

Even more, genetic testing also allows cannabis workers to detect changes or damages in the genetic material of their plants. 

Plants, like all living organisms, have a complex genetic makeup that plays a crucial role in their growth and development. However, the genetic material of plants can be susceptible to mutations, which are changes in the DNA sequence that can occur naturally or be caused by external factors. These mutations can have varying effects on the plant, from having no impact to causing serious detrimental effects on its growth and development.

One of the main factors that can cause mutations in the genetic material of plants is found in controlled environments such as in vitro culture laboratories. In these environments, plants are exposed to chemicals and UV radiation that can cause mutations in their DNA. However, not all mutations are harmful to plants. For decades, scientists have been making changes to the genetic material of plants with the goal of improving crop quality and characteristics.

While controlled environments can cause mutations in the genetic material of plants, it’s also important to consider the impact of environmental factors in uncontrolled environments, such as outdoor crop plantations. Factors like air (oxygen) and sunlight (UV rays) are two of the main factors influencing mutations in the genetic material of plants. Because these two factors are part of the normal conditions in which a crop lives on a plantation, mutations can be expected to occur at some point in the growth process of plants.

The damage caused by these factors can not only generate simple changes in the genetic material of the plants but can also have serious detrimental effects on the plant, such as growth inhibition. Even subsequent cumulative damage to genetic material can not only prevent plant cells from dividing and growing but can seriously damage tissue and ultimately kill the plant.

Although some of these mutations can be subtle and go undetected, the composition of the plant could have changed at a molecular level, which may mean that, for example, in the case of cannabis, a mutation causes the cannabinoid content to be of poor quality or even non-existent, but to the naked eye the plant looks normal. This is why genetic and molecular studies have played a key role in this industry. 

Additionally, if a grower obtains a particularly outstanding trait in their plant, the only way to obtain information on that trait and validate its function is through genetic studies, allowing them to obtain a genetic profile of the plant as proof that it is unique. These studies also work to detect unique, outstanding traits, such as high THC or CBD production in cannabis, which would not be possible without laboratory analysis, as these traits cannot be measured visually.

It is crucial for growers to have a good understanding of the genetic material of their crops in order to ensure that they are of good quality and to detect any mutations that may have a negative impact on the plant. Genetic and molecular studies play a vital role in this industry by providing growers with the necessary information to make informed decisions about their crops, and to ensure that the plants they grow are of the highest quality and free of mutations that could have a negative impact on the final product.


About MyFloraDNA: We are a genomic laboratory based in Woodland California, delivering modern genomics for the cannabis industry. 

Our services include Trait detection (cannabinoid profile and sex/gender ID), Pathogen Detection, and Genetic Validation Services. We offer breakthrough solutions using the inner power of your plants.

Angel Fernandez, author. CEO & Co-Founder at MyFloraDNA. Member of the NCIA’s Scientific Advisory Committee. “It is time to fill in the gap between DNA Sciences and Agriculture. MyFloraDNA is willing to show the huge opportunities that exist for modern genetics in agriculture. Now, it is time for another agricultural revolution”.
Joselyn Guadamuz, co-author. Scientific Researcher and Content Writer at MyFloraDNA.
Maria de Catarina, editor. Public Relations Specialist at MyFloraDNA.

Video: NCIA Today – Thursday, January 26, 2023

NCIA Director of Communications Bethany Moore checks in with what’s going on across the country with the National Cannabis Industry Association’s membership, board, allies, and staff. Join us every other Thursday on Facebook and LinkedIN for NCIA Today Live.

Member Blog: 2023 Cannabis Compensation Survey Announcement

By Matt Finkelstein, FutureSense LLC

The 4th annual Cannabis Compensation Survey is open for participation registration until April 2023.

This survey analyses data provided by employers and produces industry-specific benchmarks for 140+ unique positions. It complies with federal guidelines meant to protect anonymity and ensure unbiased results.

Participation in the survey grants your organization exclusive access to the Detailed Report – containing more data, additional percentiles, and demographic breakdowns by state, headcount, and revenue. The Detailed Report is ideal for conducting internal compensation reviews and can be used to attract, engage, and retain key talent.

Per federal guidelines – the survey welcomes organization-wide submissions only (meaning no individual submissions). Typically, data submission is completed by an organization’s HR department, payroll administrator, or a representative from leadership.  It is 100% free to participate.

Produced by FutureSense & Marijuana Business Daily, the project is endorsed by National Cannabis Industry Association and supported by Green Leaf Payroll & Business Services and Western Management Group. The survey’s mission is to support cannabis businesses, their operators and their employees by standardizing pay analysis for a dynamic, evolving, and important industry.

Enrollment is open through April 2023.

Data submission kits will be sent out in March 2023 and due back by May 31, 2023.

The final results will be published in August 2023.

For more information and to sign-up, please visit: https://content.futuresense.com/2023ccs

To download a free copy of the 2022 Summary Report, please visit: https://content.futuresense.com/2022ccs

 

Descheduling, Decriminalizing, Banking, and More

By Madeline Grant, NCIA’s Government Relations Manager

It’s always an invigorating time on Capitol Hill when a new Congress begins to get to work. The atmosphere is unlike any other; Hill offices are getting situated with their staff, hallways are full of exhilarated constituents, freshman members are finding their footing while moving into their offices, and committee assignments are being finalized. Congressional staffers, members of Congress, lobbyists, constituents, and advocates are back in action. 

As we gear up for the 118th Congress, let’s take a look at some bills that we will see introduced to address descheduling, decriminalizing, and banking legislative efforts for the cannabis industry.  

The Cannabis Administration and Opportunity (CAOA) Act

The long-awaited CAOA was unveiled last congress by Senate Majority Leader Chuck Schumer (D-NY), Senator Cory Booker (D-NJ), and Senate Finance Committee Chair Ron Wyden (D-OR). The comprehensive legalization would end federal prohibition by removing cannabis from the Controlled Substances Act, empower states to create their own cannabis laws, ensure federal regulation protects public health and safety, and prioritize restorative and economic justice. CAOA was first released as a discussion draft last year, alongside a request for comments from stakeholders. The National Cannabis Industry Association worked directly with Senator Schumer’s office and submitted comments to the bill. Although there was no movement, NCIA will continue to work directly with these offices to continue to improve the bill for the cannabis sector. 

The States Reform Act

Rep. Nancy Mace’s (R-SC) States Reform Act was introduced last congress by a freshman congresswoman from a state without any cannabis laws. The bill would federally decriminalize cannabis by fully deferring to state powers over prohibition and commercial regulation, regulate cannabis products like alcohol, institute a three percent federal excise tax on those products to fund law enforcement and small business programs, and protect our veterans by ensuring they will not be discriminated against in federal hiring for cannabis use or lose their healthcare, and more. Last year this bill received positive feedback from the industry and NCIA will continue to work with Rep. Mace’s office this congress. 

The Marijuana Opportunity, Reinvestment, and Expungement (MORE) Act

The MORE Act would end the criminalization of cannabis for adults by removing it from the list of controlled substances, eliminate related criminal penalties, and take several other major steps toward criminal justice reform, social justice, and economic development. Some key provisions of this bill are automatic expungements, impose a five percent tax on the retail sales of cannabis, create the Office of Cannabis Justice to oversee the social equity provisions, ensure the federal government could not discriminate against people because of cannabis use, and much more. Rep. Jerrold Nadler (D-NY), who served as chair to the House Judiciary Committee, was the sponsor of the bill last congress and was able to advance the bill through the chamber with ease. However, with Republicans winning back the majority in the House, successes like this will be more challenging. Additionally, Rep. Jim Jordan (R-OH), the new chair of the House Judiciary Committee, has not been supportive of the cannabis sector. 

The Securing and Fair Enforcement (SAFE) Banking

The SAFE Banking Act aims to protect banking institutions- as well as their insurers- that choose to offer services to legitimate cannabis-related businesses operating in accordance with their respective state laws. The bill prevents federal banking regulators from imposing penalties on depository institutions that offer services to cannabis-related businesses. SAFE Banking is a bipartisan bill that has passed the House seven times. The broad consensus was that inaction on SAFE Banking came down to Senate leadership. As bipartisan Senate discussions materialized towards the end of last Congress, Republican senators requested the Department of Justice (DOJ) to analyze the bill. The DOJ wrote, “because marijuana would remain illegal under federal law, Congress should ensure efforts to provide access to financial services for state-legal businesses does not unintentionally erect obstacles to prosecution of other illicit activity or activities involving money laundering of proceeds of other illegal drugs or sales of marijuana that do not comply with state requirements.” Despite the concerns, the DOJ stated they would be happy to work with Congress on ways to improve the bill. As the 118th Congress begins, we will continue to do what we can to get SAFE Banking to this finish line. 

The Harnessing Opportunity by Pursuing Expungement (HOPE) Act

In 2021 Rep. David Joyce (R-OH), who is a co-chair of the House Cannabis Caucus, and Rep. Alexandria Ocasio-Cortez (D-NY) introduced the HOPE Act to help states with expunging cannabis offenses by reducing the financial and administrative burden of such efforts through federal grants. Both lawmakers have advocated for cannabis reform on their respective sides of the aisle, with Rep. Joyce (R-OH) sponsoring the first Republican-led effort to decriminalize cannabis at the federal level in the House. Towards the end of last year discussions surfaced around including the HOPE Act in a SAFE Plus package. Unfortunately, with the end of the congressional session quickly coming to an end, so did the proposed package.

NCIA will continue to work with Capitol Hill offices to advance cannabis policy in the 118th Congress. With a shift in political dynamic, it’s imperative to continue to be a resource for congressional offices. Don’t miss the opportunity to attend our 11th Annual Cannabis Industry Lobby Days will be held May 16-18 in Washington, D.C.! You can register here. If you’re interested in getting more involved in our policy efforts or have questions about NCIA’s lobby days please reach out to madeline@thecannabisindustry.org. Stay tuned for more updates from the Government Relations team and check out last week’s blogs here

Member Blog: THC 911 – Cannabis for Emergency Workers

By Corey Morrill, Dragonfly Wellness

Did you know that as of this writing, Utah is the only state that allows firefighters to use medical cannabis during their off-hours?  

The January 2022 Utah legislative session passed SB 46. This closed a loophole in prior cannabis laws and allowed for all State employees, including firefighters, to consume medical cannabis on their off hours with a valid medical card. So, while Utah may not have the freedom to grow its own medicine as other states do, Utah is continually pushing to improve access to medical cannabis for those who severely need it. 

To better understand how the passing of SB 46 affects our patients, I spoke with Connor Carpenter. He is a specialist for the Sandy City Fire Department, a hemp grower, and a medical cannabis advocate. 

Carpenter became a firefighter after meeting the woman who would become his wife. Her father, grandfather, and uncle had all been firefighters themselves and inspired him to devote himself to a new line of work. After marrying, Carpenter and his wife began growing their own CBD-rich hemp to create sleep-aiding medicine. Although he was finding moderate relief with CBD alone, he began adding a ratio of THC to the mixture and found the right balance his body needed to rest effectively – firefighting is no walk in the park and that extends to their off-duty hours.  

“Firefighters don’t have great sleep habits,” Carpenter explained. Although THC and CBD  products are a much safer alternative for helping induce healthy sleep, Carpenter says many other firefighters have routinely turned to alcohol or opioids to self-medicate on their off-hours.  

Eighty-five percent of career firefighters reported drinking within the past month, up to ten days a month, which is about half of their off-duty days, according to surveys by the Center for Fire and Rescue and EMS Health Research. And although there is no hard data on opioid use among firefighters, their high rate of injury and constant exposure to stress and trauma-inducing events puts them at higher-than-average risk of developing a substance use disorder, according to indicators from the Substance Abuse and Mental Health Services Administration (SAMHSA) in a research bulletin from 2018. With over 2000 firefighters working for the State of Utah according to the website Firefighter Now, those addiction statistics could affect the lives of not only the firefighters, their families, and their friends, but also the lives of those in the communities they serve. 

Carpenter saw this problem affecting his colleagues and knew he had to act. He started to provide CBD-rich topicals and tinctures through his family-run business TriCombzzz & Cripple Juniper Farms. As a cannabis patient himself, he also encourages them to apply for medical cards to reduce their dependence on alcohol and opioids. He explains:  

 “I can see a huge difference in their personality when they show up in the morning or even talking to them outside of work and talking to their families. To see some of the turnarounds for these people is huge.” 

The top two qualifying conditions for medical cannabis in Utah have consistently been chronic pain and PTSD, according to monthly reports released by The Utah Department of Health. Both conditions afflict firefighters, and emergency services workers in general, at a much higher rate than the average person, according to data from the CDC and SAMHSA. Which should not come as a surprise. Firefighters, EMTs, and other first responders witness sights that an average person would recoil at, often under circumstances that are already stressful and/or physically demanding enough.  

Former Fort Worth Texas EMT Aaron Gann, now a Utah Medical Cannabis patient working the ski industry in Park City, says: “We would start to develop pretty dark senses of humor to make up for it. But at the end of the day that only gets you so far. I’m pretty sure we all got some kind of PTSD from it but smoking at night always helped more than drinking.” 

But opponents of SB 46, including an Ogden City attorney and former Ogden City police chief,  fear that allowing state first responders to participate in the medical cannabis program will put the public at risk. That fear is unfounded according to Carpenter: 

“I just don’t know anyone that would risk it. There’s not anything stopping one of us from coming in drunk either, we just wouldn’t risk it. The job is hard enough already, to try to do it high would  just be stupid.” 

It makes sense for firefighters to be allowed to use cannabis in their off-hours – as it does for all EMS employees. These people put their lives at risk every day to ensure that our communities are safe and stable. They are not seeking to do anything that would put the public, the very people they are supposed to protect, at risk. If they can provide for us during our emergencies, shouldn’t the state allow the same for them?  


Corey Morrill is the Copy Editor at Dragonfly Wellness, Utah’s first medical cannabis pharmacy. Corey started out as a passionate budtender in the pharmacy but quickly used his background with a BA in  Creative Writing from Southern Utah University to move towards writing product descriptions, and eventually worked his way into the marketing department. Corey is the chief content writer and editor and additionally serves as an SEO expert for the company. Follow the Dragonfly newsletter to see more of his work.  

Dragonfly Wellness is Utah’s first and largest, vertically integrated medical cannabis company. Wellness opened its doors in March of 2020, sharing its anniversary with the birth of the state medical cannabis program and becoming the first of what is now 15 medical cannabis dispensaries in Utah. Wellness is constantly offering its patients the best service and features an ever-expanding catalog of products, and a delivery market that continues to grow as well. Dragonfly is a state-wide staple but aims to make itself a national one. 

Video: NCIA Today – Thursday, January 12, 2023

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