“I think it was really successful on all fronts.
Whether it be the networking aspect, VIP access to key decision makers, or just the ability to get to know people both fellow cannabis business owners and congressional leaders.
Lobby Days was a perfect example of really putting the membership into work and seeing what it is that you pay for.” – Chris Jackson, NCIA Board Member
By Angel Fernandez and Felipe Cisternas, MyFloraDNA
Pathogens cause diseases when looking for a host body to infect. They come in diverse forms: bacteria, fungi, worms, viruses, and also prions. Pathogens are one of the significant threats to cannabis fields. These silent visitors may cause your plants to produce fewer trichomes, small buds, or even death.
Identifying each pathogen will help to understand how each of them propagates, its symptoms, and its consequences. In this blog, you’ll find everything you need to know about:
Hop Latent Viroid (HLV) is a single-stranded infectious RNA that interferes with cannabis plant growth. Once the Hop Latent Viroid has infected the plant, the obvious sign of infection is dudding, which is when the plant grows smaller, shorter leaves in the process. HLV can also cause other symptoms, such as yellowing, and necrotic and malformed leaves.
These plants will have fewer traces of trichomes in their structure. Detecting HLV on time is crucial to avoid an existential threat to the entire garden.
Botrytis Cinerea, or bud rot, is a fungus that damages the tender parts of plants in areas of high humidity. This necrotrophic fungus will invade damaged tissue. The symptoms include smaller buds, the development of gray mass spores, and brown, water-soaked spots found on leaves. A major consequence of this fungus is that it can kill cannabis plants within a week.
Much like Botrytis Cinerea, Lettuce Chlorosis Virus can potentially destroy an entire garden. Likewise, Lettuce Chlorosis Virus occurs in lettuce grown in southern California. The plants change into a frail yellow color. They will become very brittle and stunted. One way to prevent the virus from spreading is to take a sample of tissue from a cannabis plant and perform qPCR tests to make sure the plant is virus free.
Cannabis Cryptic Virus is a double-stranded RNA virus causing subtle symptoms to plants. Some of these symptoms include smaller flower quality and stunted growth. Thus, this virus can affect plants by producing fewer terpenes, cannabinoids, and trichomes, which are three essential components that serve different purposes for cannabis plants.
Another pathogen is Alfalfa Mosaic Virus, the virus starts by killing cells within a plant and this can be a potential problem for groups of plants. Aphids, small insects, will begin to infect one plant after another as they move and transmit the virus instantly. Seed transmission is also a possibility. There’s no known cure so it is best to care for plants to avoid infection from this type of virus. The symptoms are the same as many of the previous viruses and diseases; stunted growth, slower yield, and calico or yellow color is typically seen on leaves. The good thing is that this can be detected on time by performing serological tests, or antigen and antibody tests to help prove immune status.
Lastly, Beet Curly Top Virus is a dangerous plant virus containing a single-stranded DNA that can affect all kinds of plants, especially cannabis plants, giving them a serious infection. Symptoms include showing a yellow color with purple veins, leaves beginning to curl, seedlings dying out, and deformation beginning at the buds. Since this virus contains a protein carrying a unique code that allows for host cell replication if the virus is not detected on time the cannabis plants will die.
Recognizing the danger these pathogens pose to cannabis plants, and acknowledging their potential to prevent cultivation is very important for growth and success.
If you would like to know more about cannabis pathogens and how to prevent infections in your garden, download our free guides about How to treat Infected Material and The Ultimate Hop Latent Viroid Guide.
Keep growing safe and healthy cannabis!
Author: Angel Fernandez, CEO & Co-Founder at MyFloraDNA. “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”
Co-author: Felipe Cisternas, Intern at MyFloraDNA
Editor: Ashlyn East, Intern at MyFloraDNA
About MyFloraDNA: We are a genomic laboratory based in Woodland California, delivering modern genomics for the cannabis industry. MyFloraDNA provides data-driven decisions to help breeders increase their plant yields.
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.
Who asks if you think you have an infection in your garden?
We highly recommend you consult with DNA Laboratories. They will guide you through the process, test your plants, and let you know if they are infected with HLV or not.
by Lee Johnson, CBD Oracle
A new survey from CBD Oracle found that if inflation drives cannabis prices up, most customers will start to buy less cannabis. Unfortunately, inflation isn’t going anywhere anytime soon, currently standing at 8.3%, and things are very competitive for both dispensaries and growers. Plus, the survey shows that the fear that customers will go to a competitor if you raise prices is actually very justified. So what can companies do? We’ve put together some suggestions that play on consumer psychology to help you stay profitable.
The survey from CBD Oracle asked 1,450 Americans in adult-use states about their buying habits and how they may change with inflation. While there were many results, the most interesting ones concerned how people would respond to more inflation and the price of cannabis increasing.
They found that 54% of respondents would buy less cannabis if prices increased as a result of inflation. Although over a third (37%) would buy around the same amount, it’s clear that there will be some impact on companies’ bottom lines. The survey also asked about the maximum amount people would be willing to pay for an eighth (around 3.5 g) and found that while 83% would pay $30, only 57% would still buy at $40.
But with increased prices for everyone from growers to dispensaries, it’s difficult to make ends meet at current prices. Mature markets like Colorado have an even bigger issue, with more than enough stock and tons of competition, so increasing prices may really feel like a gamble. The situation is totally unsustainable, and around 30% of dispensaries will be raising prices in the near future, if they haven’t already.
Andrew Livingston, Director of Economics & Research at Vicente Sederberg commented to us, “Cannabis is clearly not ‘inflation proof.’ Companies struggle to operate profitably as their cost of labor, distribution, and input ingredients climb along with prices across the rest of the economy.”
The survey shows that the problem is on the horizon, but what’s the solution? Here are some suggestions.
Anchoring is a very useful psychological concept for dispensaries, and there are many ways you can benefit from it. The way it works is really simple. Imagine you have a “regular” price on the tag crossed out, and a sale price below it. Even if the sale price is still higher than customers might want to pay, customers note the crossed-out price and then look at the other relative to the original amount. So if your eighth is labeled “$35 $25,” customers “anchor” onto the $35 and the $25 seems like a bargain. This specific type is called strike-through price anchoring.
Price anchoring can be very powerful when used intelligently. For example, you could have your biggest-selling product on the shelf, but with a much more expensive strain beside it, ideally marked and labeled such that it’s hard to ignore. While very few customers will pay for that $50 eighth, that will make the $30 one sat beside it look much better.
In this approach, you arrange your store so that higher-price items greet customers – again, made hard to ignore through ads and positioning – and they anchor onto higher prices. Then as they make their way into the store and see your regular prices, they seem cheaper, even if they haven’t changed or have even increased.
You can also try to balance less profitable products out with other items. As McKinsey & Company suggests, raising prices on secondary and tertiary items (think grinders, bongs, vape pens, and other accessories) can help you recoup losses on key-value items (cannabis products). Combined with other approaches, this can be a clever way to boost profits while minimizing the risk customers will simply go elsewhere for weed.
With over half of dispensary customers sticking to the same seller, one way to minimize the impact of inflation is to make your brand their brand. Shopify’s report on the Future of Retail recommends focusing on your brand story (why are you in business? What sets you apart from the competition?), showing that your values align with customers’ and treating your employees as a “brand audience.” If you educate your employees about your brand, you will make them brand evangelists, improving customer loyalty as a knock-on effect.
Simply reducing costs on packaging – child-proof plastic packets rather than glass, for instance – can help you stay in profit without pushing costs to customers. Freezing hiring or even laying off staff is another alternative. This isn’t ideal, but if there are ways you can streamline, automate or digitalize processes, you may be able to cut back until the economy gets back on its feet.
Arguably the most important thing you can do alongside any of these changes is to improve your data collection and response process. This is simply so you know the impact of the interventions as quickly as possible. You need to combine this with an enhanced decision-making process so you can make company-wide changes quickly and efficiently. It’s unlikely you’ll be able to make one set of changes and leave it that way, so set up systems to streamline the process for the future.
With the report showing tough times are likely ahead for the cannabis industry, the most important thing to remember is that basically every dispensary in your state is in the same boat. If you’re friends with any other businesses in your area, talk to them about it and how they’re planning on responding. If prices must rise, it’s much better if you can present a united front to consumers. One dispensary raising prices might be a death sentence; all dispensaries raising prices is just inflation, plain and simple. Be up-front with each other and customers, and you’ll be surprised at how well you can pull through.
Lee Johnson is a writer at CBD Oracle who has been covering science, vaping, and cannabis for over a decade. He focuses on research-driven deep dives into topics ranging from medical uses for CBD to industry and user statistics, as well as general guides and explainers for consumers. He is a passionate advocate of both CBD and cannabis, and a strong believer in informed choice for consumers.
CBD Oracle is a cannabis consumer research company working to improve the safety and transparency of cannabis products, producing in-depth research pieces, along with long-form analysis of social and legal issues.
By Mack Bush, King Palm
There has been a steady movement for the decriminalization of cannabis worldwide. Many organizations call for their governments to allow recreational and medical cannabis, and it’s hard to deny how valuable the cash crop can be for the local economy. Learn how some cannabis brands are contributing to decriminalizing cannabis and making an impact.
As it stands, 19 U.S. states have fully legalized cannabis, and another 19 have medical marijuana programs. While this is fantastic progress, it’s still leaving many people convicted of drug crimes, medical patients, and minorities behind. While some places go the extra mile, there are still many places where it’s a punishable crime with the smallest amount of cannabis. Cannabis laws continue to evolve to protect users, such as the new California law that protects employees from smoking outside work hours.
A bill to decriminalize marijuana passed in the U.S. House in April, but there’s not a lot of hope that Congress will take it up. However, the fact that it was proposed shows that recreational and medical cannabis is becoming closer to the mainstream.
Canada, Mexico, South Africa, Thailand, and Malta have legalized adult-use cannabis. The list is relatively short and shows that there’s still progress worldwide.
It’s become clear that many think it doesn’t make sense for people to go to prison for cannabis possession. Programs have been set up in most states and some countries to expunge cannabis possession records and free people who are locked up unjustly.
Here’s a quick introduction to some of these programs and how states, businesses, and individuals push cannabis decriminalization and legalization forward.
A common critique of the cannabis industry is that it’s dominated by white people who were never negatively impacted by anti-marijuana laws. Social equity programs in many states are working hard to level the playing field.
While each state has different qualifications, eligible people must live in an area strongly affected by high arrest and imprisonment rates for cannabis activity. Applicants might also receive extra assistance if they were arrested or convicted of marijuana crimes before legalization.
Some businesses also offer reduced product prices, grants, and loans for cannabis enterprises founded using social equity programs. This makes it easier for minorities to get the funding they need to start the industry.
Not everyone who wants to get involved in the cannabis field is interested in running their own business. Some organizations are also making it easier for people of color to find jobs in the field.
The Minority Cannabis Academy is a New Jersey program that helps young Black Indigenous people of color find their vocation in the cannabis industry. It trains them to work as budtenders in existing dispensaries, giving them a leg up for employment.
In Illinois, cannabis companies can expedite their application for a license if the majority of their staff has been convicted of a cannabis-related offense in the past. This incentivizes businesses to hire minorities and people who need help from these programs.
More programs like these should be developed nationwide if we want a positive representation of BIPOC in the cannabis industry.
Having a marijuana conviction on your record can have lasting consequences. Drug convictions come up in background checks, and since they carry a significant stigma, people can lose out on employment opportunities when a company judges them harshly for their past.
A cannabis conviction can also make it difficult to rent an apartment or buy a home. Plus, people with drug convictions have been denied student loans and other loans from financial institutions.
When Illinois legalized cannabis in 2019, it was important to lawmakers that people who were convicted for marijuana crimes previously were able to clear their records.
An excellent organization focused on eliminating people’s cannabis records called the Illinois Equal Justice Foundation is taking a step forward. They will award over $1.4 million in grants spread throughout 18 organizations in the state to help rid people of their cannabis records. The funding will assist legal aid groups, so they can represent people in court and are committed to educating people about their expungement options.
Thailand has pushed its efforts even further. When the country delisted cannabis as a narcotic in June, they also released 3,071 inmates who had been convicted of cannabis-related crimes.
Canada has issued pardons for people with previous marijuana convictions for several years. The process can be slow, but the government feels strongly that these people should be released, and their records wiped clean.
These models show that it’s possible to legalize marijuana while still caring for people whose criminalization has been negatively impacted. Experts are hopeful that President Biden will free individuals in jail for marijuana possession, but the future in the United States remains unclear.
King Palm is a cannabis smoking accessory brand that has created a Last Prisoner Project rolling tray to help spread awareness of that non-profit organization.
This cannabis smoking accessory brand is donating to the Last Prisoner Project. This nonprofit organization is committed to freeing people convicted of marijuana-related crimes.
The organization works hard to advocate for bills that would free people from prison for marijuana offenses, and once people are freed, they help them integrate back into their communities.
Many states are setting up expungement assistance programs that anyone can access. The process can take time and be confusing, but many people find it extremely worthwhile.
In 2021, Michigan passed the Clean Slate Act, which expanded the types of crimes that can be expunged. Some expungements will even be automatic under the law. The state says hundreds of thousands to millions of people are now eligible for their criminal records to be wiped clean.
Another strong member of the National Cannabis Industry Association is Cannabis Equity Illinois. They help community members expunge or seal their criminal records for cannabis and also advocate for automatic expungement. They also provide Know Your Rights seminars, so no one is criminalized for cannabis use.
Looking for help expunging your legal record with cannabis? Many areas have expungement events, and you can find exactly what you need to do on your state’s website.
Support for cannabis decriminalization is growing, but there’s still a long way to go. Luckily, many governments, businesses, and nonprofit organizations are doing their part to make cannabis mainstream and help minorities make their way up through the budding industry.
Mack Bush (they/them) is a freelance writer who is passionate about sharing the joys of cannabis with the world. They manage their fibromyalgia with medical marijuana, and it’s opened up new doors and improved their quality of life. They live in Grand Rapids, Michigan with their cats, Rigatoni and Jasper. Find out more about their work at mackbush.com.
King Palm is one of the leading cannabis companies in the world for joint wraps, pre-rolled cones, and rolling papers. Their specialty palm wraps are made from Cordia leaves and allow you to get in touch with nature while you smoke. They also create quality smoking accessories, including electronic devices like concentrate vapes and nectar collectors, as well as lighters, rolling trays, grinders, and ashtrays. Find out more about their products at kingpalm.com!
by Mike Lomuto, NCIA’s DEI Manager
Over the past few months, the NCIA has been hard at work in social equity and the emerging New York market. NCIA’s Diversity Equity and Inclusion Committee has organized an ongoing roundtable discussion with various ally organizations including NYC NORML, Minorities for Medical Marijuana (M4MM), Minority Cannabis Business Association (MCBA), The People’s Ecosystem, the JUSTUS Foundation, Black and Brown Economic Power in Cannabis (BBEPIC), and the Social Equity Co-Chairs of the New York City/Hudson Valley Cannabis Industry Association (NYCCIA/HVCIA), and Unified Legacy Operators Council (UNLOC), and social equity cannabis business owners from existing markets.
These discussions have centered around the proposed New York regulations, policies, and concerns. We all share a common goal to provide sensible and workable solutions to the state famous for “stop and frisk” in alignment with the goals of New York, to create a diverse, inclusive, and socially equitable cannabis industry.
What emerged from our roundtable discussions over the last few months are robust proposals regarding key regulatory changes and solutions to the New York regulators as they deliberate their proposed rules that will affect the industry. If our proposed comments were to be adopted, we are confident New York will see more equitable pathways for folks who potentially would be left behind otherwise. In particular, we strongly recommend their definitions of justice be broadened and we included proposals to that effect. We also encourage the regulators to create more pathways and solutions for legacy operators still in the shadows to be able to enter the legitimacy of the industry. Further, we proposed sensible changes to align New York to more national standards in labeling, advertising, packaging, licensing, and operations.
Our coalition roundtable based our recommendations on combined decades of experience on the frontlines and in the communities that will be impacted by these regulations. Our proposals are workable solutions the state of New York can incorporate in order to solidify equity in the industry as they come online.
As a roundtable coalition that is New York focused but with national reach, we’re proud to be able to work alongside our allies to create a think tank that will affect future markets beyond the big apple as they struggle with the concept of good and effective social equity programs. For far too long, the road has been paved with good intentions that fall short of the destination needed for true social equity. Our New York Social Equity Roundtable has brought together people from various sectors and organizations who fundamentally understand that and who are passionate about bridging the disparity all too prevalent in the cannabis industry.
by Kameron Richards and Steven Schain
Members of NCIA’s Banking & Financial Services Committee
Obtaining legitimate, cannabis-friendly financial services is among the cannabis industry’s biggest hurdles. Obtaining financial services is challenging for dispensaries, marijuana grows, and testing labs but it could also be an obstacle for non-plant touching businesses or individuals engaged in the cannabis industry. Without cannabis-friendly financial services, individuals and businesses related to the cannabis industry are deprived of simple financial solutions, like checking accounts, resulting in large amounts of cash being held at company facilities or the operator’s residence, posing significant risks.
Because only a small amount of insured banks and credit unions offer cannabis businesses financial services, finding cannabis-friendly financial services offered by FDIC or NCUA/CUNA institutions is challenging, and following a certain approach may fortify the longevity of a relationship with a financial institution.
Thorough onboarding initiates the account opening process for cannabis companies seeking financial services. Cannabis-friendly financial institutions exercise enhanced due diligence at account opening for compliance purposes, which will be further discussed in this article.
Financial institutions may require information on state licensing, corporate structure, and governance documents. Institutions generally collect information regarding the company’s underlying products and whether those products or services violate The Controlled Substances Act (“CSA”). Information collected during the onboarding process often determines the institution’s fee, risk-based categorization, and willingness to provide financial services to a particular cannabis company.
During the onboarding process, cannabis companies should determine if the financial institution provides all services necessary for its specific operation. The services offered by cannabis-friendly financial institutions may vary based on its risk tolerance.
Financial institutions serving the cannabis industry must comply with The Bank Secrecy Act’s (“BSA”) requirements set forth in the Treasury Department’s Financial Crimes Enforcement Network’s (“FinCEN”) BSA Expectations Regarding Marijuana Banking (FIN-2014-G001) (“FinCEN Guidance”). To mitigate the possibility of money laundering, institutions assemble extensive risk-based BSA programs centered around assessing the risk of each cannabis account and detecting and reporting “Red Flags” set forth by FinCEN Guidance.
To understand the constraints under which financial institutions are forced to operate, cannabis companies should familiarize themselves with relevant cannabis industry regulatory guidance and, if possible, structure its operations to ease its financial institution’s compliance efforts. Further, cannabis companies should understand any contractual terms and operation of any specific cannabis programs required by its financial institution (e.g., participation in cannabis-specific programs to support loan approvals, liquidity management or the coordination of cash courier services).
FinCEN Guidance requires institutions to perform enhanced due diligence on cannabis companies, because the risk category of each cannabis account is determined during the onboarding process, institutions are required to obtain corporate and state licensing documentation and detect any negative news on the potential account signers and the business.
Because there is no mandated risk-based structure for institutions to follow, it is critical that cannabis companies know its institution’s specific risk-based structure. Further, if a cannabis company is utilizing more than one institution, it should understand that each institution’s risk-based categorization may have specific factors or considerations. Some institutions use a tiering structure (which can vary by institution) or make this determination based on the direct or indirect relationship that the account’s source of funds has with cannabis prohibited by the CSA. An institution’s risk-based categorization could determine an account holder’s compliance obligations or eligibility for financial services such as lending, treasury services, payment processing, and 401(k)/retirement solutions.
After completing the onboarding process and placing cannabis accounts in the requisite risk profile (which may vary among institutions), institutions are obligated to conduct ongoing enhanced due diligence on cannabis accounts in accordance with the risk each account poses.
This enhanced due diligence encompasses staying abreast of corporate changes, confirming that all licenses are up to date and conducting periodic negative news checks that indicate FinCEN Guidance “Red Flags.” It can also include a litany of happenings that cannabis account holders may not be aware of. While cannabis account signers may be compliant, without any negative news on them or their business, their institution could also close an account due to adverse information from tax and state licensing authorities or wrongdoing by employees or vendors. Cannabis account holders should also be aware of transactions prohibited by its institution’s policies and procedures like commingling funds between non-plant touching and plant touching accounts or transferring funds to and from vague accounts at unaware institutions unwilling to serve the cannabis industry.
Cannabis account holders with multiple relationships should be aware that each institution’s closure protocol may vary in response to adverse information or conducting transactions prohibited by internal policies and procedures (account termination terms are often contained in the depository agreement between the institution and cannabis account holder).
Beyond assisting a business’ core functioning, maintaining relationships with legitimate financial institutions leads to strategic advantages for a cannabis company and its owners and operators, like financing or payment processing.
Further, because FinCEN requires institutions to monitor and report cannabis account transactions and file a Suspicious Activity Report (SAR) when a cannabis account is opened or closed or if “Red Flags” are detected; cannabis companies can protect their accounts and businesses by knowing applicable laws and regulations and their institution’s cannabis-specific programs’ policies and procedures.
NCIA’s Service Solutions series is our sponsored content webinar program which allows business owners the opportunity to learn more about premier products, services and industry solutions directly from our network of established suppliers, providers and thought leaders.
In this edition originally aired on Wednesday, September 21, 2022 we were joined by the experts from Netwatch North America and Sapphire Risk Advisory Group to discuss the stark differences between the most common methods businesses choose for video monitoring to clear up the confusion about the best method for your type of business.
Every business needs a video surveillance system to guarantee the security of its premises and improve business operations. As a high-risk industry, cannabis businesses have an even greater need for these systems. Cultivation facilities, processing labs, and dispensaries are high-value targets for potential criminals due to the large amounts of currency and cannabis products stored on-site.
In addition, these systems are necessary to remain compliant with local or state law. However, while regulations require cannabis businesses to equip their facilities with a functioning video surveillance system, regulations can be less restrictive about how these systems are monitored. Yet, the method of video monitoring chosen can determine how effective the business can be at reducing and preventing criminal activity.
You’ll leave the program with a roadmap for next steps to take to evaluate the methods currently in place, how best to conduct an assessment and implement new systems to ensure the security of your business AND the safety of your employees.
In this session, you will learn:
• What are the most common video monitoring methods for cannabis businesses?
• How does each method monitor, detect unauthorized activity, and comply with canna regulations?
• What is the best option for your type of business?
Presentation Slide Deck: [View/Download Here]
Panelists:
Justin Wilmas
President
Netwatch Systems
Haley Glover
Senior Security Consultant
Sapphire Risk Advisory Group
Session Chapters & Discussion Outline
00:00 – Session Intro
01:58 – Moderator Intro
02:42 – Panelist Intros & Company Backgrounds
03:30 – Session Agenda & Conversation in Context
04:10 – Live Poll #1
05:30 – Common Video Monitoring Methods
06:48 – Monitoring and Detecting (On-Site Employee or Security Guard)
08:25 – Monitoring and Detecting (Third Party Monitoring Companies)
10:42 – Monitoring and Detecting (Proactive Monitoring Companies)
12:26 – Live Poll #2 13:50 – Alarm Response and Dispatch (False Alarms)
15:50 – Alarm Response and Dispatch (Verification, Response and Dispatch for Different Monitoring Methods)
19:20 – Alarm Response and Dispatch (Deterrence & Response Time)
20:49 – Compliance
21:31 – Compliance (Video Monitoring)
22:48 – Compliance (Installation)
23:33 – Compliance (Maintenance)
24:00 – Compliance (Loitering Prevention)
25:25 – Compliance (Loitering Prevention by Method)
27:55 – Compliance (Post-Incident Reporting)
29:20 – Compliance (Post-Incident Reporting by Method)
31:42 – Live Poll #3
33:22 – What’s The Right Solution for Your Business?
33:56 – Methods Summary
36:10 – Proactive Video Monitoring by the Numbers
38:20 – Netwatch Platform
39:44 – Next Steps
40:53 – Contact Information
41:30 – Audience Q&A (When should I reach out to a PVM company during the cannabis business planning process?)
43:29 – Audience Q&A (What VMS systems does Netwatch currently integrate with?)
44:45 – Audience Q&A (Do insurance companies reward operators for proactive video? Is activity reporting for proactive surveillance a regulatory requirement in MA or other jurisdictions?)
46:42 – Audience Q&A (How does working with a security company like Sapphire help to save my company money?)
48:26 – Audience Q&A (How important and common are camera analytics in the industry?)
52:09 – Audience Q&A (Should I choose the security integrator/manufacturer to work with first or my video monitoring method?)
54:39 – Audience Q&A (How do you get in touch with a risk consultant?)
55:50 – Final Thoughts & Upcoming Events w/ Netwatch & Sapphire Risk Advisory Group
57:25 – Outro
Sponsored By:
Want to know more about the products and services offered by Netwatch North America? Head to https://netwatchusa.com/ to learn more today!
Cannabis Voter Project is working with cannabis retailers and brands to get out the vote on National Voter Registration Day on Tuesday, September 20, 2022.
As a cannabis industry operator, the importance of having your voice heard in the political sphere likely crosses your mind on a daily basis. The 2022 midterm elections are right around the corner, and it’s the perfect time to encourage your customers to also be empowered and informed this November at the polls.
NCIA is happy to partner once again with HeadCount’s Cannabis Voter Project, which is a national initiative to increase voter turnout within the cannabis community. When citizens are informed and engaged, we grow our power for the future.
We’re inviting cannabis community leaders to join us on National Voter Registration Day (Tuesday, September 20) for a national day of action. That means hitting your email lists, SMS lists, social media outlets and other comms channels with a simple call to register to vote. Below is suggested messaging as well as links to social media assets.
NCIA members interested in participating can start by reviewing this kit, which also includes information about the initiative.
The kit includes assets like graphics, dedicated links, and suggested copy to directly engage your community. You will also have the opportunity to be listed as a partner on the Cannabis Voter Project website.
There is no cost and no obligation.
If you’re interested in more information, please contact Sam at samd@headcount.org.
by Bryan McLaren, CEO and chair at Zoned Properties, Inc.
Environmental, Social, and Governance (ESG) initiatives are central to the evolving business landscape as more organizations dedicate resources to amplify their social impact, execute on purpose-driven goals, and ultimately create long-term value.
Pressure from stakeholders and shareholders has been instrumental in transforming how organizations are planning for the future. In the Accenture Future of Work Study 2021, 65% of employees believe organizations should be responsible for leaving their people “net better off” through work and 71% of consumers believe ethical corporate practices and values are an important reason to choose a brand. But even beyond this shift in demand for company transparency and a more defined investment in communities from corporations, ESG reporting will soon be a necessity for public companies and a variety of financial organizations.
The Securities and Exchange Commission’s climate-related disclosure earlier this year is a major shift in how companies will be structured requiring corporate entities to proactively integrate ESG into their business model.
Though the proposed rules will most likely lead to legal challenges, accepting the realities of where global business stands today and the environmental issues communities are facing should be at the forefront of every cannabis business, whether they are public or private. There will also inevitably be opportunities that develop from these policies to engage with stakeholders and increase value.
Recent data illustrate the positive results of adopting new standards and reporting methods. According to the Accenture Future of Work Study 81% of sustainable stock indices outperformed their peer benchmarks in 2020. ESG focuses on the Triple-Bottom-Line principles, which essentially advocates for a balance between people, profit, and planet when considering any program or project within an organization. Sustainability professionals who have been advocating for both ESG and Triple-Bottom-Line principles will likely not be surprised by these statistics, as their focus on a long-term, balanced approach to creating value can be less subject to the waxing and waning fluctuations that come with the single-bottom-line approach of focusing only on short term profit.
It is essential for cannabis companies to make ESG initiatives a priority as more investors look to these frameworks as potential predictors for future success. Already some cannabis license applications are requiring environmental impact statements and state-level environmental compliance documentation.
The cannabis industry also has a unique opportunity as a relatively young and emerging industry. Many cannabis companies already have the capacity and infrastructure to adapt swiftly to changing regulations. In the new era of ESG, cannabis corporations are in the position to make these principles a part of their core narrative early on and become more attractive to investors.
In commercial real estate, here are some of the most relevant ESG initiatives to consider.
These are based on the Sustainability Accounting Standards Board’s (SASB) materiality finder for real estate, which also provides insight across a broad range of industries for those interested in other sectors.
There are many ways to begin monitoring and collecting data that will help provide a clearer picture of a cannabis facility’s operational efficiency. For facilities already existing in the cannabis ecosystem, property owners and operators should consider investing in eco-friendly waste management initiatives, repurposing materials when possible, and ensuring recycling capabilities at every operation. Utilizing technology platforms to track water consumption and overall environmental performance will allow an operation to investigate what opportunities exist to reduce energy use by replacing equipment or introducing more natural ventilation into spaces to reduce heating and cooling use.
For those in the early stages of a cannabis real estate project, industry professionals should make ESG initiatives a part of their buildout strategy from the beginning. This means addressing the potential physical risks and impacts on a building where you’re looking to develop. Is the property in a flood zone and at risk of rising sea levels? Is the potential building site exposed to other natural disasters like wildfires?
Many of these environmental and climate-related risks also intersect on a social level. In cannabis real estate, companies should consider whether a building and its materials are safe for workers and the larger community. For example, due to changing weather patterns and increasing temperatures, air quality may decrease or there may be extended periods of drought. Planning ahead to mitigate some of these risks is essential, from considering the introduction of cisterns to collect rainwater during extreme weather that can be repurposed in drier seasons, as well as on-site green spaces and rooftop gardens that can generate cooler temperatures while providing a welcoming environment for employees.
The key to preparing for ESG requirements and ensuring that your organization is ready to tackle these issues is to incorporate these specific needs directly into project objectives and having experts on the project team that understand both short-term requirements and long-term opportunities.
Overall, cannabis real estate needs to be developed with geography and locality risks in mind. It’s not only a necessity to make energy-efficient and sustainable strategies a part of a facility’s infrastructure, but also consider where and how that property will be impacted in the future.
Bryan McLaren serves as the Chairman and CEO of publicly traded Zoned Properties, Inc. (ZDPY). As a licensed Realtor, certified Green Roof Professional,and former City Sustainability Commissioner, with multiple Masters degrees focused specifically on Sustainable Development, Bryan has navigated state regulatory programs for environmental projects and cannabis commercial real estate projects nationally across hundreds of development projects.
About Zoned Properties, Inc. (OTCQB: ZDPY):
Zoned Properties is a leading real estate development firm for emerging and highly regulated industries, including regulated cannabis. The company is redefining the approach to commercial real estate investment through its integrated growth services.
Headquartered in Scottsdale, Arizona, Zoned Properties has developed a full spectrum of integrated growth services to support its real estate development model; the Company’s Property Technology, Advisory Services, Commercial Brokerage, and Investment Portfolio collectively cross-pollinate within the model to drive project value associated with complex real estate projects. With national experience and a team of experts devoted to the emerging cannabis industry, Zoned Properties is addressing the specific needs of a modern market in highly regulated industries.
Zoned Properties is an accredited member of the Better Business Bureau, the U.S. Green Building Council, and the Forbes Real Estate Council. Zoned Properties does not grow, harvest, sell or distribute cannabis or any substances regulated under United States law such as the Controlled Substance Act of 1970, as amended (the “CSA”). Zoned Properties corporate headquarters are located at 8360 E. Raintree Dr., Suite 230, Scottsdale, Arizona. For more information, call 877-360-8839 or visit www.ZonedProperties.com.
Twitter: @ZonedProperties
LinkedIn: @ZonedProperties
by Mike Lomuto, NCIA’s DEI Manager
NCIA is proud to announce that for the first time, thanks to the support of our members, we have awarded nine Lobby Days Equity Scholarships to support our Social Equity members with travel expenses to attend NCIA’s Lobby Days in Washington, D.C., on September 13-14. These Social Equity applicants and operators from around the country are leaders and active contributors to NCIA’s Sector Committees, our DEI Initiatives (particularly policy-related ones), and to advocacy efforts in their local and/or state municipalities.
Lobby Days provides the opportunity for NCIA members to come together to advocate for the issues most important to small cannabis businesses — from SAFE Banking to federal de-scheduling — and to share their personal stories with national lawmakers.
Our delegation includes:
Dr. Adrian Adams, Ontogen Botanicals CBD
Ambrose Gardner, Elev8
LaVonne Turner, Puff Couture
Michael Diaz-Rivera, Better Days Delivery
Osbert Orduña, The Cannabis Place
Raina Jackson, Purple Raina
Toni MSN, RN, CYT, Toni
We asked our DEI delegation why attending Lobby Days was important to them. Here are some of their responses:
“I want our elected officials to hear my story which gives a voice to so many others, who like me, grew up in areas that have disproportionately borne the brunt and weight of cannabis enforcement. Children and young adults, whose only crime was being poor and of color, faced the indignity of being stopped and frisked hundreds of times. Now after paying the ultimate entry price, we can not get in the door of the cannabis industry because of a lack of banking and lending opportunities that continue to shut us out of the cannabis market.
The de-scheduling of cannabis, the passing of SAFE Banking, or the repeal of IRC 280E all would immediately increase the opportunities for small cannabis businesses like mine to have a true opportunity for success, growth, and economic empowerment of our communities.”
– Osbert Orduña, The Cannabis Place
“As the industry grows and moves towards federal legalization, our elected officials must hear constituents’ voices. It’s important that my energy, face, and voice are present, representing the need for safe banking, health equity, and policies that support federal legalization. As states continue to legalize adult recreational cannabis usage, there will be an increased need for cannabis health equity to address the social, political, and economic conditions in underserved communities.
I’m committed to increasing awareness of the importance of education, employee retention, and community wellness in these communities.”
– Toni MSN, RN, CYT, Founder of Toni
NCIA’s Education Committee & Health Equity Working Group
“I have begun to work on lobbying at a local level. Federal legalization, descheduling, decarceration, social equity, health equity, and safe banking are some of the areas that I would like to learn how to lobby for at the national level.”
– Michael Diaz-Rivera, Owner/Operator, Better Days Delivery
“We should not stop at using the SAFE Banking Act merely to provide legal and regulatory protection for financial institutions. That will enable, but not ensure, increased banking services for minority-owned cannabis and hemp companies.
As the regulatory gaps between state and federal governments are addressed, there must be mechanisms to prevent predatory practices while opening access to capital.”
– Dr. Adrian Adams, Ontogen Botanicals CBD
It is important to the NCIA, and its membership for Main Street Cannabis to continue to develop in as diverse, equitable, and inclusive a manner as we can achieve. As the industry has thus far failed at creating tangible Social Equity, it’s important to ensure our efforts this September to include these voices and the communities they represent.
As the official DEI delegation, the Lobby Days Equity Scholarship recipients will provide a foundational understanding of matters related to DEI in the industry for all NCIA members present at Lobby Days. The DEI delegation will ensure that there are members present speaking up on matters of DEI from within an important national trade association and within the context of Main Street Cannabis.
NCIA’s Government Relations team has organized a full day of meetings with Lawmakers and their Offices. New citizen lobbyists will receive online training before the event and are grouped together with experienced industry leaders who can help them find their voice. There will be an opening networking reception for all attendees, and a closing event featuring some of NCIA’s most important allies in Congress.
We are still accepting sponsorships to fully fund Lobby Days Equity Scholarships to ensure our recipients have their travel and lodging expenses covered while in Washington, D.C. Contact MikeLomuto@TheCannabisIndustry.org for more information.
Let’s keep building a better industry together, as we bring our voices to Washington, D.C.
by Tommy Truong, KayaPush
A recent survey by Headset.io found that 55% of budtenders leave their jobs within the first year of employment.* But why?
Some believe improper onboarding could be a culprit.
First impressions matter – and improper onboarding can leave budtenders feeling underprepared and unappreciated. Moreover, budtenders who don’t receive proper compliance training might be terminated due to compliance infractions and could even be at personal risk for their errors.
Luckily, by setting up solid budtender onboarding SOPs that put compliance first, you are more likely to keep great hires – and avoid compliance infractions.
The following information will help dispensary owners implement hiring and training strategies to increase retention, avoid compliance infractions, and simplify dispensary onboarding.
Compliant onboarding starts with understanding your budtenders’ requirements to work at your dispensary.
Every state has unique requirements regarding background checks, legal age, and budtender certifications – so it is essential to research each of these elements before you begin the hiring process.
Once you have established your hiring guidelines regarding legal requirements – you can take it one step further and set up an applicant tracking system that is customized to only reach out to applicants who qualify for your set terms.
Using tools that automate these processes will make compliant dispensary hiring easy.
Social equity hiring initiatives in cannabis
While we’re on the topic of hiring for your cannabis dispensary, we would be remiss if we didn’t mention the importance of researching potential social equity programs for dispensary hiring opportunities.
You can use these resources to find qualified social equity candidates for your dispensary based on the state in which you are located.
The next step to a smooth and compliant onboarding process is to know all the forms you need to provide and gather from your new hire.
If you are an American business owner, the forms you will need to collect from your employee include:
The forms you will need to share with your new hire include:
Business owners who don’t use employee onboarding software manage a lot of paperwork.
From chasing new hires around for signatures or documents – to figuring out the best way to store things – it’s a time-consuming headache, and it’s not ideal.
With dispensary self-serve onboarding software, dispensary owners can eliminate 100% of their paperwork – and increase their compliance in many ways.
Here’s how it works. When a new hire joins, a dispensary owner can share their onboarding link, where their new hire will upload digitized documents directly into the system for central storage.
If any documentation is missing, the system will send a reminder to ensure they provide all the information needed for dispensary owners to stay compliant.
Compliance training should be a critical part of the budtender onboarding process – but what does that mean?
For budtenders, there are four main areas of compliance to master: How to sell products to customers and with a POS system, how to handle products, and overall regulations comprehension.
Selling products to customers training might include:
POS training might include:
Product handling training might include:
Overall regulation comprehension might include:
Compliance is one of the most challenging aspects of running a cannabis dispensary – however, if you surround yourself with the right team, use cannabis software built for dispensaries in your state, and check in often on regulatory updates – you will be alright.
*(Headset.io, 2022 An analysis of employee turnover in cannabis retail)
Author Tommy Truong is the CEO at KayaPush; the cannabis software helping dispensary owners manage their employee HR, scheduling, and payroll. KayaPush also integrates with leading dispensary POS systems. Tommy loves hot sauce, fried chicken, and running with his Boston terriers
KayaPush delivers an innovative, unified compliance solution that meets payroll and HR needs without compromising speed and accuracy. Implementing KayaPush will save you time and money and help eliminate the financial risks associated with non-compliance.
As the only national advocate for small and mid-sized cannabis businesses, NCIA works every day to advance policy reforms favorable to the whole industry — not just the wealthiest few. Hear from NCIA Board Members why our mission and advocacy work is crucial to defending the interests of everyday businesses in the cannabis industry.
Joining NCIA ensures that your interests are heard in our nation’s halls of power as the rules for national legalization are written. We’re also the only full service trade association in the industry, which means that our members enjoy unparalleled ROI and benefits to help them thrive in an increasingly challenging environment.
by Gary Cohen, Cova Software
The cannabis industry has come a long way in the U.S. Although we still await federal legalization, many new states have recently jumped on the bandwagon, and legacy states are awarding more social equity licenses. While New Jersey and Mississippi will be opening their first dispensaries by the end of 2022, New York has started accepting applications for CAURD licenses from justice-involved individuals. But scoring high points on your dispensary license application can be challenging, especially with all the stringent requirements. Here are some quick tips to help you stand out and prepare a winning dispensary license application.
Every state in the US has different guidelines and regulations for a cannabis dispensary license. Do a thorough review of all the information available on your state cannabis authority’s website, and keep a look out for when they will start accepting applications. Most states accept only electronic applications, and you will likely have to create an account online on a designated website and link your company’s official information. For an application to be deemed complete, a response to each criterion specified must be included, along with the required documents.
To be eligible to submit a cannabis dispensary license application, you must reside in the state where you are applying or must be registered to do business in that state. Many states are awarding conditional cannabis business licenses to social equity applicants first or prioritizing applicants impacted by the war on drugs to build an equitable cannabis industry. If you qualify for any of these categories, ensure that you apply for the right one to expedite the processing of your dispensary license application.
Some states require your dispensary to be located in the municipality you live in, and you will be awarded a license only for a particular zone. Community reach and impact are also criteria laid down by some cannabis authorities, and you must establish connections with not just local and state officials but also other people who can help you understand the bigger picture better. For example, New Jersey and New York want you to explain the positive community impact your dispensary business will have. If you don’t connect with the community, you won’t be able to align your vision with their needs in your dispensary license application.
After familiarizing yourself with the license requirements and structure, you must dive into how you can prepare the best possible application to score higher points on every measure. For example, to obtain a conditional dispensary license in New Jersey, 40 out of 100 points are for your dispensary business plan, and another 50 points are for a regulatory compliance plan. One of the most crucial aspects of this is a dispensary operations plan that you must include in your application. This plan helps authorities understand how your dispensary business will comply with all cannabis laws and regulations and ensure safe access to cannabis for your customers.
The detailed plans included in your cannabis dispensary license application must also mention the technology provider you intend to partner with, and choosing a compliant cannabis retail platform will help you fortify your application further. Prepare a winning dispensary license application by downloading Cova Software’s free template, Dispensary Operations and Security Plan, which will serve as a comprehensive guide to writing a winning plan for a successful cannabis retailer license application.
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.
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. This week Bethany is joined by NCIA CEO Aaron Smith to talk about the importance of having your voice heard on Capitol Hill at our upcoming 10th Annual Cannabis Industry Lobby Days on September 13-14. Join us every other Thursday on Facebook for NCIA Today Live.
Join us September 13-14, 2022 as we return in person to Washington, D.C. for the first time since 2019 for NCIA’s 10th Annual Cannabis Industry Lobby Days!
This is your chance to unite with other NCIA members to advocate for the issues most important to small cannabis businesses – from SAFE Banking to federal de-scheduling – and to share your personal stories with national lawmakers who need to hear from Main Street Cannabis businesses.
Watch this video to hear from NCIA’s CEO and Co-founder, Aaron Smith, about why you should attend this most impactful and crucial event next month. Not yet a member? Join today and then make your plans to join us in D.C.
NCIA’s editorial department continues the Member Spotlight series by highlighting our Social Equity Scholarship Recipients as part of our Diversity, Equity, and Inclusion Program. Participants are gaining first-hand access to regulators in key markets to get insight on the industry, tips for raising capital, and advice on how to access and utilize data to ensure success in their businesses, along with all the other benefits available to NCIA members.
I am a first-generation Latino of Colombian descent, Spanish was my first language and my dad spent most of my youth incarcerated. I grew up in NYC Public Housing projects, and I have first-hand knowledge of the indignity of what it feels like to personally be stopped and frisked nearly 100 times which is what happened to me as a kid and young adult for doing nothing else than being a poor Latino growing up in the hood. I was an Education Opportunity Fund scholar and the first in my family to go to college, where I received a degree in business, and a graduate certificate in law. I earned the designation of Disabled Veteran while serving in Iraq with the United States Marine Corps, and I am also a 9/11 first responder. I retired after a career in public service, and have worked as an entrepreneur for over 10 years, and know what it takes to start a business from scratch, without a rich uncle, generational wealth, or rich financial backers.
In late 2020 and early 2021, I had the opportunity to visit 50 non-MSO recreation and medical dispensaries in five states on the east and west coast. I wanted to learn more about dispensaries and best practices across the industry, but my trip opened my eyes to a different reality. Forty-nine of the dispensaries were owned by white males and one was owned by a white female, not one owner looked like me or shared a similar background. None of these dispensary owners had been stopped and frisked hundreds of times for no other reason than just because they lived in an area with historically high rates of arrests and enforcement from over-policing. Yet they were now engaged in an industry that seemed to exclude us. My trip left me sad but determined to enter the cannabis market so that people who look like me who came from the struggle of the streets, and were collateral damage in the war on drugs could have a chance. I was determined to create a positive example for Latinos and others to follow.
The Cannabis Place offers a unique value proposition which is our commitment to launching as a union cannabis dispensary on day one. As of yet, we are the only dispensary in the state of New Jersey and the nation to propose this. By launching our business as a unionized shop we are being a partner to our Jersey City, NJ community. Our value proposition promises that we will be a responsible and proactive member of the community that provides union career opportunities with true living wages that will empower our team members to provide upward mobility for themselves, their families, and the greater community. Furthermore, we are engaged as a Workforce Development partner with Cornell University, the Workforce Development Institute, and Hudson County (NJ) Workforce Development Board. With these partnerships, we will develop standardized training modules that will be utilized to train prospective dispensary workers and provide opportunities for those seeking cannabis careers in this new and emerging industry.
Our mission: To provide high-quality cannabis to clients with a consistent product and first-class service they can trust. To build our brand on the core values of client service and care, while maintaining the highest standards of quality, integrity, and community outreach.
As the CEO of The Cannabis Place, our primary goal for the greater good of cannabis is to advocate and support a proactive approach to adult-use by providing a local and safe environment to dispense cannabis products. We operate as a social impact cannabis brand and are dedicated to providing consistent access to safe and reliable cannabis products that are ethically grown and sourced. Our aim is to launch the first unionized cannabis dispensary in New Jersey, leading by example, and demonstrating to other businesses that true success is based on placing people over profits.
Our goals are as follows:
Our advocacy at The Cannabis Place is based on workers rights, especially organization, fairness and quality healthcare. We believe that it should be easier for people in all job fields to organize. At The Cannabis Place we support the implementation of legislation that will raise the minimum wage floor for all workers in our community, to provide for true living wages that place people over profits. Workers in all industries deserve more from the moment they are hired. Like many others I grew up as part of the working poor, in public housing with limited minimum wage job opportunities, without healthcare and with minimal alternatives to life on the streets. At The Cannabis Place we believe that by providing our workforce with union careers with true living wages and full benefits, our team members, their families and their communities will feel the immediate difference of financial stability, long-term growth, and the impact of upward financial mobility to help them support their family and to build a better life.
Latinos are consistently underrepresented in terms of business owners throughout all industries. Now when you focus specifically on cannabis and look at a national level, just 5.7% of all license types are held by the Hispanic community. I have seen challenges in the cannabis industry in two key areas, access to capital and the real estate market. It takes money to make money so if you grew up poor, without generational wealth, no rich uncle, no hedge fund connections or oligarchs to call on, how do you raise funds to have the millions that are needed to launch a dispensary or grow? Next and along the same lines is real estate. A lot of landlords won’t lease to cannabis businesses but unfortunately, our experience has been that again a predatory market exists where cannabis rental rates are 2 to 10 times the normal lease rates for the area. The other option is to buy a commercial parcel which brings us back to issue #1 – access to capital. I am ever the optimist, and I see the Latino community growing in the legal cannabis industry as entrepreneurs, c-suite members, and as leaders in the industry bringing our unique insight and sabor to the industry while creating opportunities for generational wealth for our community. In order to get there, we need to bridge the gap through social equity grants and loans that can help Hispanic cannabis entrepreneurs raise enough capital to start their business, and receiving financial education is also crucial for Hispanic entrepreneurs in multiple phases of the cannabis business planning timeline.
We are a Disabled Veteran and Latino-owned company with a core focus on community impact through social impact so the ability to be a Social Equity Scholarship recipient in an organization like the NCIA, a group who are actually dedicated to ensuring that small cannabis businesses have a seat at the table in Washington, D.C. and beyond, was super important to us. We look forward to learning new information and utilizing networking opportunities to help us grow and succeed in the cannabis industry.
The fact that NCIA is leading change to protect the legal cannabis industry, advocate for our state laws, advance federal policy reforms, and to make this a more inclusive and prosperous space by working together to defend the responsible cannabis industry. Creating more opportunities for small businesses rather than just the wealthiest few is the most important thing for us as members of the Social Equity Scholarship Program.
The Cannabis Place 420 Corp is the first ever Disabled Veteran and Minority Owned Business enterprise to successfully navigate the Jersey City, NJ municipal cannabis dispensary approval process in this new and emerging cannabis market.
by Justin Charneau, Eagle Protect
Skin-related (dermal) issues from the constant wearing of disposable gloves were among the top complaints revealed in various cannabis workplace surveys. Many employees required to don single-use gloves to conduct a variety of job-related tasks – in the cannabis cultivation process and several other industries – remain unaware of the distinct types and qualities on the market, and how they differ. The quality, fit, durability, and functionality of disposable gloves are determined by several factors, including the type, application, raw materials, and manufacturing processes used to produce them.
Among disposable gloves, there are three primary types – latex, vinyl, and nitrile, each with differing qualities and risks. Here is a snapshot of each variety, along with their associated dermal risks:
Latex – these gloves are constructed of rubber, a snug fit like second skin that is both highly elastic and resilient. They are mostly worn in the medical industry, where a high level of dexterity and tactility is warranted. However, latex gloves can trigger a Type I hypersensitivity reaction to latex and Type IV hypersensitivity reaction to rubber chemicals. Latex-free nitrile gloves have generally superseded this option in the market.
Vinyl – these cheap gloves are manufactured from brittle polyvinyl chloride (PVC) material, prone to a high rate of defects (rips and holes) in the glove barrier, an immediate cross-contamination risk.
Vinyl gloves are manufactured with plasticizers to soften the PVC, which often contain toxic phthalates and chemicals. Many of these ortho-phthalates have been shown to harm reproductive health and brain development. These threats can be absorbed into the glove wearer’s skin, and leach into the food handled which, in turn, can later be ingested by customers. Phthalates in vinyl gloves are highly restricted in Europe and Japan for food handling and were recently banned by the state of Maine.
Vitrile – a blend of vinyl and nitrile. These gloves should be stronger than plain vinyl gloves and less expensive than nitrile. Due to pandemic-related price increases in gloves, the vitrile option has recently grown in popularity. Buyers should beware of cheap nitrile gloves, blended with cheaper vinyl, yet still marketed as nitrile. Vitrile gloves carry the same risks to the wearer, and the products they handle, as vinyl gloves.
Nitrile – these gloves are among the best choice for the cannabis industry, as they protect against harmful chemical substances, and their puncture and tear-resistant qualities are ideal for complex cultivation and processing tasks. They also provide the highest level of protection and durability as a barrier to harmful chemicals and pesticide exposure.
However, nitrile glove allergies can also occur, posing potential problems for the glove wearer. Cheap and toxic raw material ingredients, which reduce glove manufacturing costs, can also cause occupational skin disease (OSD), such as contact dermatitis and Type IV hypersensitivity to rubber chemicals. Accelerators, added to speed up rubber vulcanization during the manufacturing process, are the typical cause of glove contact allergies.
For glove wearers prone to skin allergies and irritation, higher quality gloves and accelerator-free options are a necessity.
There are ways and means of reducing the risk of dermal disorders caused by single-use, disposable gloves. The more frequently gloves are worn, the higher the risk. Below are several ways to mitigate the risk of dermal disorders:
For more information on how disposable gloves can affect your business and productivity due to skin disorders and repetitive hand movement injuries, please read our recent NCIA blog post, “PPE and Staff Efficiencies – How Much Do the Quality of Your Disposable Gloves Matter?”
Justine Charneau is the head of cannabis industry sales at Eagle Protect, a disposable glove supplier dedicated to the responsible sourcing of quality products that ensure customer safety and impact reduction, ultimately mitigating customers’ risk. Eagle Protect is the only global PPE supplier that is a Certified B Corporation, a designation that a business has met the highest standards of verified performance, accountability, and transparency. She can be reached at justine@eagleprotect.com.
by Walter Moore, Cognitive Harmony Technologies CEO
The multi-billion dollar cannabis industry is coming to a town near you. With new states passing adult-use legislation every day, it’s only a matter of time before businesses begin opening their doors nationwide.
In states such as New York, the first cannabis business licenses (CBLs) are being given to people who were impacted by the war on drugs and hemp farmers. The effort is a first-of-its-kind approach that is admirable in theory – a positive step toward righting the wrongs that have persistently and unfairly affected people of color – but still leave the door open for challenges in practice.
Simply put, the barrier for entry is too high for most individuals due to the complex and convoluted CBL application process. Between sifting through and submitting thousand-plus page documents and potentially spending hundreds of thousands of dollars to create a perfect, compliant application, new business owners are fighting an uphill battle against multi-state operators (MSOs) who have moved across the country as legalization opens state by state and have the process (and hundreds of thousands dollars needed to afford a dedicated application consulting firm) down to a science.
Legislators may have noble intentions in offering a head-start to people affected by the war on drugs in an effort to correct past wrongdoings and create a distribution of ownership that looks like the people most affected, but if the necessary regulatory framework of the application process is encumbered with more compliance to receive equity benefits, it will be even harder to complete a competitive application – leaving many potential new business owners without a license and the well-oiled machines known as MSOs first in line.
Not to mention the fact that the application process often plays out over years. States will frequently take half a year to review an application and only provide roughly 10 days to fix any deficiencies.
While the odds may seem stacked, the technology to close the gap exists and many CBL applicants are finding out how to compete against large MSOs and established players in the market. As someone who experienced everything that goes into the application process, and what is wrong with it, first-hand when I began my career in cannabis, I’ve realized that the only way to effectively compete is by working smarter. Through technology we can create greater access and a level playing field.
There are several key areas where technology (i.e. “working smarter”) is already paving the way for true social equity while applicants embark on submitting a cannabis business license. Document generation, telepresence, language processing, machine learning, artificial intelligence and augmented reality are among areas of interest that savvy CBL applicants can implement into their strategy. By normalizing standard operating procedures (SOPs) across verticals and jurisdictions, companies can provide contextual SOPs directly in front of a user with a simple QR code. Imagine a world where a dispensary employee can access SOPs directly from each piece of equipment or area of a facility with minimal effort simply by scanning a QR code with their tablet.
Laws that benefit a more equitable industry surely help, but in a new industry where the gap between the have and have-nots is already wide and growing rapidly, more steps need to be taken by regulators to eliminate the pay-to-play mistakes that have infested other state cannabis policies such as in my home state of Illinois. In Illinois, there wasn’t a fair cap on the number of CBL submissions for a company, leaving businesses with the most money with an opportunity to submit over 40 times and flood the application pool.
Thankfully, I’m pleased that regulators in New York and New Jersey are doing a better job in this regard, avoiding these unfair situations, but I foresee a highly political zoning situation in New York. Historically, companies that can afford to pay lobbyists and other influential people to get the deals and contracts done, are more successful. I’m not sure what short-term regulatory solution exists for this age-old, persistent issue.
It’s encouraging to see the cannabis legalization movements around the country paired with well-meaning equity and restorative justice initiatives. However, there is still a high barrier to entry presented by the extensive and convoluted cannabis business license application process. Only through advances in technology will this barrier be taken down.
Walter Moore Cognitive Harmony Technologies CEO & CTO, is an accomplished software architect, financial engineer, and entrepreneur residing in the south suburbs of Illinois. He specializes in architecting elegant, compliant, and scalable solutions to complex regulatory environments in the AdTech, FinTech, Digital Assets, and Cannabis industries. He has a Masters of Science in Financial Engineering and undergraduate degrees in Theoretical Physics and Applied Mathematics.
Walter started Cognitive Harmony Technologies in order to support social equity teams and bring change to an industry which has historically whitewashed the past injustices served in its former prohibition, something which he has experienced firsthand in prior decades. As a cannabis business license owner, Walter knows just how difficult it is to put together a competitive application. He developed the CHT platform in order to help lower the barrier of entry for others willing to put in the hard work of assembling an application, but who would otherwise be priced out of the competition.
About Cognitive Harmony Technologies
At Cognitive Harmony Technologies, our proprietary CHT Accelerator platform is paving the way for true social equity in the CBL application process by developing a meticulous roadmap to create a complete and competitive automated application much like tax preparation software generates tax returns, providing live-support, and offering access to a helpful network of architects, realtors and a range of connections. Additionally, we offer this for a fraction of the cost of what the hundred-thousand-dollar consulting firms that multi-state operators employ, and in some cases it is completely free. Cutting-edge technology is the best tool that an everyday, aspiring entrepreneur can leverage to break into the industry, and make the cannabis sector’s leadership as representative and diverse as the consumers.
Our mission is to open the doors for equitable cannabis business ownership by making the application process easy as filing personal income taxes online. The CHT Accelerator streamlines the entire application process into one easy-to-use software platform so you can create a complete and competitive application. Follow us on LinkedIn or visit our website.
The discussion about the future of cannabis legalization is ongoing, to say the least. Recently, Cannabis Regulators Association (CANNRA) held a two-day conference in early June to gather Marijuana government regulators, trade associations, and businesses. The Cannabis Regulators Association (CANNRA) is a national nonpartisan organization of government cannabis regulators that provides policymakers and regulatory agencies with the resources to make informed decisions when considering whether and how to legalize and regulate cannabis.
Representatives from NCIA participated in the conference – NCIA Board Members Khurshid Khoja (Chair Emeritus) and Michael Cooper (Board Secretary), and we caught up with them in this blog interview to better understand the goals and outcomes of the event.
MC: The conference was an opportunity for regulators from around the nation to hear directly from stakeholders on the current and future challenges that face these markets and different models of regulation to tackle them.
KK: I’ll add that our own goals, as the current Policy Co-chairs for NCIA, were to better understand the priorities of state and local cannabis regulators across the country, and anticipate future developments in cannabis policy early on, so we could take that back to the NCIA membership and the staff – especially Michelle Rutter Friberg, Mike Correia, and Maddy Grant from our amazing government relations team.
KK: Michael and I each spoke on a panel. The other speakers included reps from federal trade associations, lobbyists, vendors, and ancillary companies who were helping to underwrite the event (along with NCIA). Given that CANNRA is a non-profit that doesn’t receive any funding from their member jurisdictions, and has a single paid full-time staff member, I thought they were still able to obtain a fairly diverse and interesting set of speakers at the end of the day – including NCIA Board and Committee alums Ean Seeb, Steve DeAngelo, Amber Senter and David Vaillencourt (representing the Colorado Governor’s Office, LPP, Supernova Women and ASTM, respectively), as well as folks from Code for America, Americans for Safe Access, and the Minority Cannabis Business Association, U.S. Pharmacopeia, NIDA, the CDC, and the Alcohol and Tobacco Tax and Trade Bureau, representatives of the pharmaceutical, hemp, tobacco and logistics industries, and public health officials.
MC: No licensed businesses were invited. Instead, organizations that represent industry members were invited. As a result, we felt it was crucial to inform these discussions with the perspective of the multitude of small and medium-sized businesses otherwise known as Main Street Cannabis that have built this industry and continue to serve as its engine.
KK: Sadly, we did not have an opportunity to hear from members of the Coalition of Cannabis Regulators of Color. I can’t speak to why that was, but it was unfortunate for us nonetheless. And while we had some public health officials there, I know that CANNRA Executive Director Dr. Schauer would have preferred to see more of them in attendance.
KK: We covered a ton, given the time we had, including the federal political and policy landscape; interstate commerce; the impact of taxes on the success of the regulated market; social equity and social justice; preventing youth access; regulation of novel, intoxicating and hemp-based cannabinoids; the prospects for uniform state regulations; technological solutions to improve compliance and regulatory oversight; and delivery models.
MC: There really are a wide variety of perspectives on how best to regulate this industry. We felt it was essential that NCIA give a voice to Main Street Cannabis, the small businesses that so many adult-use consumers and medical patients rely upon. We emphasized, for example, that these are often businesses that cannot simply operate in the red indefinitely, but provide essential diversity (in the background and life experience of operators as well as in product selection and choice). NCIA wants to make sure that the future of cannabis isn’t simply the McDonalds and Burger Kings of cannabis. There are times when consumers want that, but there are also times when they want something unique and different. And it’s crucial that policy not destroy the small and medium-sized, frequently social equity-owned, businesses that provide those choices.
MC: There are a ton of different perspectives and approaches to cannabis, and that’s no surprise to anyone who has followed these issues closely because the tensions are very clear in the policy debates that are ongoing.
As the voice for the industry, we sought to urge an approach grounded in reality. Americans want these products. That’s clear from the ballot box and public polling. The question should be about how to encourage Americans to purchase regulated, tested versions of these products.
KK: There was definitely stuff we didn’t agree with – some of it from folks that we otherwise largely agree with. For example, our good friend Steve Hawkins of the USCC shocked a few of us in the audience when he seemed to indicate some receptivity to re-scheduling cannabis on an interim basis, rather than moving to de-scheduling immediately. I think that while rescheduling may benefit scientific research and pharmaceutical development, it could ring the death knell for Main Street Cannabis businesses. NCIA has consistently advocated for de-scheduling rather than re-scheduling.
KK: I think there’s a growing recognition that addressing social equity solely through preferential licensing and business ownership for the few isn’t enough and that the licensing agencies and regulators that execute social equity policies have a very limited (and often underfunded) arsenal to comprehensively redress the harm caused by federal, state and local governments prosecuting the war on drugs. In my remarks, I said it was time for us to start discussing additional forms of targeted reparation and had a number of regulators approach me afterward to continue the discussion. Candidly, I expected my remarks to fall on deaf ears. They didn’t. That was very encouraging.
MC: There was definite progress. At the end of the day, these cannabis regulators are working hard to try to get this right. But in such a new area, and with so many competing perspectives and voices, their job isn’t easy. We were heartened to see the level of engagement from regulators on these points, including follow-ups to get more information on some of the pain points we identified for small and equity businesses in the industry.
It was definitely rewarding to provide NCIA and our members’ perspectives in a forum like this, and we’re looking forward to continuing to further strengthen NCIA’s relationship with CANNRA and regulators around the country.
by Angel Fernandez, María Zuccarelli, and María de Catarina, MyFloraDNA
For many years, growers and breeders have speculated why “dud plants” are seen across different cannabis crops.
It is a fact that cannabis has faced many viral infections. Due to viruses and viroids, some varieties mutated into genetic changes over time, altering the evolution of the plant.
But… how can we detect Hop Latent Viroid (HLV)?
Hop Latent Viroid (commonly known as Dudding Disease) is a single-stranded, circular infectious RNA. It is not a virus. Let us explain the difference:
Viroids only replicate in plants. Also, viruses are more complex than viroids. Viroids are compounded by only RNA, while viruses are composed of a protein capsule enveloping their genetic material.
Viruses infect new hosts only once they enter a host and replicate on it. Viroids are transmitted through direct contact of a healthy plant with an infected one. Also, can be transmitted by contaminated tools and instruments (gloves, scissors, tweezers, even human hands).
Talking about HLV, we must remember that this viroid is latent, so there are many asymptomatic transmissions. It can spread without symptoms, and you will only realize it when it is too late.
HLV is a silent viroid, meaning that this viroid may or may not show early visual clues from its presence. Some physical symptoms in cannabis plants are:
This issue is important, so please take note. If you have any doubts about an infection of Hop Latent Viroid in your garden, TREAT EVERYTHING AS IF IT IS INFECTED. Download here our guide on how to treat infected material.
HLV and other viroids in your garden or greenhouse can spread quickly from infected to healthy plants. The main transmission causes are:
Here are some essential tips:
Who asks if you think HLV may be in your garden?
Thank you for reading! We hope you find this information useful. In case of any doubts, do not hesitate to ask us regarding any related topic and download our Complete HLV Guide here. We highly recommend you consult with DNA Laboratory. They will guide you through the process, test your plants, and let you know if they are infected with HLV or not.
Angel Fernandez, CEO & Co-Founder at MyFloraDNA. “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”
Co-author: María Zuccarelli, CMO at MyFloraDNA.
Editor: María de Catarina, PR Intern at MyFloraDNA.
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.
by Nicole Perry, DartBank
There are not a lot of financial institutions out there that support cannabis, so finding the right one is important. What is also important is to understand the ‘why’ behind what they are asking. Opening a cannabis bank account is not as easy as opening a traditional business bank account. With cannabis being federally illegal, banks, and credit unions must adhere to the rules and regulations set forth by our regulators, also tying in the respective state that the cannabis business is operating in.
An initial phone call is often set up for the financial institution to learn more about the cannabis business, its owners, and signers. Knowing when the business will be operational and what their big picture looks like is fundamentally important. Questions could be asked about ownership, location, growth, licenses, and compliance. Some products and services are not fully available to the cannabis industry, because other players have not fully opted in (i.e., merchant processing and debit/credit cards). This makes the financial institution banking cannabis able to create a product suite that they feel comfortable with from a risk and compliance standpoint. Pricing out cannabis bank accounts is also something that differs from the traditional businesses being banked.
Again, not every financial institution will support cannabis, and that is because it is expensive. It is expensive because those that support the industry have had to seek guidance from consultants, their respective regulator, their state, their local cannabis groups and associations and their board of directors. The initial onboarding of a cannabis customer, after pricing is accepted, takes longer as well. Background and credit checks, as well as risk reviews need to be completed at most financial institutions, along with an initial onsite audit visit.
It is widely understood that cannabis businesses must go through an inspection with their operating state before they are licensed, however, financial institutions are still required to make sure they know what they are working with. Most financial institutions work closely with their compliance/BSA teams to develop risk profiles so that if questions are asked of them during an audit, they can answer to the best of their knowledge the transactions that are occurring and then prove that we understand what the cannabis businesses are using their accounts for. Many financial institutions have implemented the use of compliance software that allows their cannabis departments to review transactions, seed-to-sale monitoring, monitor licensing, insurance, onsite visits, and financial changes. METRC and Bio Track are the two main seed-to-sale tracking systems used throughout the United States. Most states have adopted using one or the other and few have implemented their own manual tracking.
The seed-to-sale system your financial institution chooses to work with can integrate with your respective state’s seed-to-sale tracking system for financial institutions to monitor account transactions and seed-to-sale flow. It is common to have your financial institution reach out to you once you have been onboarded to integrate your API key (QR code that houses your cannabis licenses) into their respective compliance software to initialize the tracking component. Directly after this, the designated person at the cannabis business or CPA (to be determined by the cannabis business) will be asked to upload your financials into the compliance software monthly for tracking purposes. These systems correlate with most POS systems as well as QuickBooks for a seamless flow. Financial Institutions are often asked by cannabis businesses if this is something they can do in-house or if they can utilize an outside CPA firm to help. The answer is yes to both. It takes minimal time each month to upload your financials so doing it yourself is certainly feasible, however, there are many CPA firms out there who will do it for you, along with making sure your numbers make sense and your taxes are accounted for. Not to mention, the annual CPA attestation as well.
Financial institutions are not asking you to do this to make your life difficult. It is simply because this is a new industry, one that is federally illegal at that, and verifying information to better understand how the industry works only helps to normalize it. It is also common for your financial institution to ask for invoices to accompany transactions such as wires, ACH, bill pay, checks, cash deposits, etc. We do this because auditors also ask us if we can, in fact, verify we know what this transaction was for and to whom the funds went. It also helps with fraud surveillance. Most financial institutions have experts in fraud or compliance who can help deter this from happening to you and your business.
We have come a long way since inception and have learned a lot over the years. What is important to know is we are all a team. The cannabis business and the financial institution are working together to understand how they both complement each other. Together we are building the cannabis industry, so that one day, when it is stabilized and normalized, we can take that with us for the next big thing. Every industry out there was new at one point and had to go through the same trials and tribulations, and while most of us cannot remember or have never been a part of the ‘build out,’ it did happen at some point. When your financial institution asks you for something related to transactions or business, please understand that it is for the better of the industry.
We can work together to normalize and strengthen this industry. All the steps we are taking are learning opportunities. I believe everyone can say at one point they did not know how to do something, but through training, education, and a road map, we were able to develop a routine so that as we grew at understanding something we had not understood before, it became normal.
Nicole Perry has been with Dart Bank since 2016 as the Office Manager and most recently VP/Senior Treasury Management Officer. She brings with her 20 years of financial services experience. Prior to joining Dart Bank, she worked for various financial institutions holding many different roles, specializing in business banking.
Nicole is an alumna of the Lansing Chamber of Commerce’s Lansing Leadership 2018 class and is part of the Perry School of Banking class of 2020. She received her Bachelor of Arts in Business Management with an emphasis in Human Resources from Davenport University and attended Central Michigan University for her Master of Science degree. In her spare time, Nicole enjoys attending Michigan State University football and basketball games and spending time with her family and friends at the lake.
by Gary Paulin, VP of Sales and Client Services at Lightning Labels
With expansive product choices, it’s no longer enough to rely solely on product quality and availability. Today’s maturing cannabis marketplace requires differentiation to resonate and succeed.
Three pillars of that differentiation are stellar customer service, total transparency, and excellent education. At the core of each, sincerity and truth must predominate. In this age of “fake news,” anything that doesn’t seem trustworthy and true likely will backfire on the company sooner or later.
It only takes one unsubstantiated quality control or product claim to hit the social media lie detector, then potentially go viral. At the very least, one consumer badmouthing your company via word-of-mouth and/or digital messaging will harm your reviews and ratings. In most cases, the damage will be undetectable until it reaches a level where revenues and reputation are noticeably impacted.
For example, when someone complains about lengthy waits to receive live phone support (including disconnects while waiting), it’s okay to say something like, “I get it. We’ve been having challenges. Now that we’re on the phone together, let’s address your needs right away. And, please give me your phone number, just in case this call drops. I’ll call you right back.”
“Full disclosure” should be at the core of all things educational, both in information repositories and customer service support. For example, CBD can make some people cranky and anxious. Full disclosure must override the desire to sell. By fully informing a consumer of risks as well as rewards, the experience is much more likely to result in high marks for the company.
Conversely, incomplete or inaccurate information provided by salespeople motivated only by making sales will backfire when less than optimum outcomes occur. In contrast, a salesperson willing and able to fully educate will help build long-term customer relationships with the company.
There are companies that have weathered supply chain and workforce shortage issues — and even inflationary pressures — well. One that comes to mind is Costco. Unlike many retailers during the pandemic, their quality of service has remained high. Product availability and selection have been maintained. Prices, although subject to some upward movement, don’t seem to have risen as much as most retailers.
Clearly, Costco found solutions instead of blaming challenging conditions and using those as an excuse for failure. Follow this example. Find ways to do more with less, get creative about becoming more efficient, and plan ahead so that emergent problems don’t become overly taxing.
Cannabis companies that excel in being trusted, liked, and respected will outperform their competitors willing to live with mediocrity.
Gary Paulin is VP of Sales and Client Services at Lightning Labels, a Denver-based custom label printer that uses state-of-the-art printing technology to provide affordable, full-color custom labels and custom stickers of all shapes and sizes. Contact: sales@lightninglabels.com; 800.544.6323 or 303.481.2304.
By Jodi Green, Miller Nash LLP; Shay Gilmore, The Law Office of Shay Aaron Gilmore
Members of NCIA’s Risk Management and Insurance Committee
Although the concept of state-legal cannabis has been around in some shape or form since 1996, cannabis remains illegal to consume in most public places. In other words, legal cannabis consumption remains relegated to back alleys, derailing efforts to “normalize” cannabis use. Tourists visiting popular cities where weed is legal are caught in the unenviable Catch-22 of being able to purchase, but not publically consume, the product. And those who attempt to use cannabis in public still face criminal penalties in some states, with minorities three times more likely to be targeted for arrest, perpetuating racial disparities at a tremendous social cost.
Enter the cannabis lounge. Cannabis lounges — also known as “consumption lounges,” cannabis cafes, or some variation on that theme — are in simplest terms the cannabis equivalent of a bar or restaurant. Depending on state and local regulations, lounges offer users the chance to congregate in a public place and smoke a joint, try out a $500 gravity bong, or sip on a cannabis drink. With any luck, consumers may enjoy their cannabis with a snack or dinner, but mixing with alcohol is typically not allowed.
As with any “new” risks, some cities, states, and insurers are… concerned. Despite some obvious tax and social benefits, detractors cite a host of reasons to prevent lounges from coming to a city near you, including at the forefront: fears of public nuisance (odors, theft, and disruption) and overconsumption — especially because most states insulate cannabis cafes from liability for harm caused by obviously intoxicated or underage users, unlike dram shop laws for alcohol.
As another NCIA member recently pointed out, even in states that do allow cannabis cafes, regulatory bodies continue to struggle with how to shape the laws and regulations governing lounges to afford adequate consumer protection while allowing businesses to thrive. Moreover, without a better understanding of the regulatory landscape, some insurers — whose business model hinges on the ability to accurately price a risk — may be unwilling to play in this new cannabis lounge market.
Alaska led the country in 2019 in licensing on-site consumption. A handful of states and localities have followed Alaska’s guide, and more are anticipated to join this year, including Michigan and New York. We compare a few regulatory schemes below and also consider the impact of dram shop legislation on risks faced by the industry.
California, governed on the state level by the Medicinal and Adult Use Cannabis Regulation and Safety Act, delegates to localities the right to open consumption lounges. Put simply, cities have to affirmatively “opt in” to allow lounges. With a few contingencies — including that patrons must be 21 or older and no alcohol or tobacco can be sold on premises — “a local jurisdiction may allow for the smoking, vaporizing, and ingesting of cannabis or cannabis products on the premises of a” licensed retailer. See BPC § 26200(g).
To date, only a few localities have opted in to allow cannabis lounges, including San Francisco, Oakland, and Palm Springs. West Hollywood, in efforts to create an epicenter for canna-tourism, plans to allow up to 16 lounges within its jurisdiction. Because state law provides little regulatory guidance for lounges, localities generally provide more specific guidance. As an example, West Hollywood’s local municipal code requires security guards on site, as well as within a two-block radius surrounding the business during operation, and allows the sale of cannabis to an individual “in an amount reasonable for onsite consumption.” West Hollywood Municipal Code §5.70.041. Only one lounge is currently open in West Hollywood, the Artist Tree’s Studio Cannabis Lounge, which offers not only lounge access but cannabis yoga, live music, and comedy shows, along with a revolving selection of local art. The Woods, another West Hollywood dispensary with a soon-to-open courtyard lounge space, is also slated to open in 2022.
Although California law significantly limits third-party liability for alcohol-related accidents, it does not afford cannabis owners the same protection. For example, California Civil Code §1714 explicitly states that furnishing alcohol “is not the proximate cause of injuries resulting from intoxication,” which has essentially absolved bars, restaurants, party hosts, and most others of potential liability for selling or furnishing alcohol to customers and guests with an exception for liability arising from the furnishing of alcohol to an “obviously intoxicated minor.” See California Business & Professions Code § 25602.1. Without similar protections for cannabis lounges, injured parties could attempt to sue under a negligence theory if a business or employee serves an intoxicated patron who causes harm.
As of January 1, 2020, local jurisdictions in Colorado can opt-in to the state’s cannabis hospitality business license regime (Colo. Rev. Stat. § 44-10-609), and as of March of 2022, the City of Denver has approved cannabis hospitality businesses for operation. Denver operators include the first social equity applicant in Denver approved for a hospitality license, the Tetra Lounge, although from its website Tetra Lounge’s website describes itself as “a private lounge,” requiring a monthly or annual membership fee and a liability waiver to gain access.
As to dram shop liability, although Colorado law authorizes damages against a licensee for willfully and knowingly selling or serving alcoholic beverages to a visibly intoxicated person, the Colorado Legislature caps liability at $150,000 (Colo. Rev. Stat. § 12-47-801 (3)(II)(c)). This damages cap improves (i.e., reduces) the ISO hazard grade, resulting in the improvement of insurance options available for liquor liability. The legislature has not adopted the same or a similar damages cap on liability for cannabis consumption establishments.
In June 2021, Nevada’s Governor signed Assembly Bill 341 into law, authorizing the Nevada Cannabis Compliance Board (“CCB”) to license and regulate consumption lounges across the state, subject always to local approval. The State plans to issue up to 65 lounge licenses (40-45 for lounges attached to existing dispensaries, 20 for independent lounges) with 10 reserved for social equity applicants.
Most recently, on June 28, 2022, the CCB voted to unanimously approve a host of regulations for cannabis consumption lounges. Nevada’s extremely detailed state regulations prohibit the sale of “single use cannabis products” with more than 3.5 grams of “usable cannabis” and 10 mg of THC for edibles; prohibit the removal of any cannabis products from a lounge; require a mitigation plan for impaired driving and detailed employee training for overconsumption; and require consumer education and warnings to customers, among other things. As with other states, Nevada allows local jurisdictions to prohibit consumption lounges and to implement more stringent regulations than state law.
Unlike other states, however, Nevada law carves out protections for cannabis lounge operators just as it does for alcohol. Nevada law already protects businesses that serve or sell alcoholic beverages from injuries inflicted by an intoxicated person. And while any person who knowingly furnishes an alcoholic beverage to any person under 21 years of age is guilty of a misdemeanor, the law provides only for criminal penalties, not civil liability. The Nevada Supreme Court has repeatedly refused to impose responsibility on vendors selling alcohol absent a legislative provision. See Snyder v. Viani, 885 P.2d 610 (Nev. 1994) (holding consumption is the proximate cause of alcohol-related injuries and dismissing the negligence claim against a tavern owner for alcohol service). The same rules will apply to cannabis operators.
Over two years after full legalization of adult-use commercial cannabis in Illinois, cannabis lounges in Illinois are still relatively rare, with the first Chicago-area marijuana consumption lounge opening on April 20, 2022. Like other states, the State of Illinois does not directly license lounges, but it allows local governments to opt in.
Illinois creates a cause of action against sellers for injury by an intoxicated person. § 235 Ill. Comp. Stat. 5/6-21. The standards for liability under the Illinois dram shop law include: (1) sale of alcohol to any person who, while intoxicated, causes injury, and (2) any person owning, renting, leasing, or permitting the occupation of any building or premises with knowledge that alcoholic liquors are to be sold therein, severally or jointly, along with the person selling or giving liquor. In Illinois, the Dram Shop Statute provides the exclusive remedy for alcohol related injuries. See Charles v. Seigfreid, 65 NE.2d. 154 (Ill. 1995). The Statute also provides stringent limitations on recovery of damages. There is no equivalent in Illinois for cannabis entities.
As with cannabis law generally, lounge operators face a patchwork of state and local regulations that vary tremendously by jurisdiction. In most places, cannabis lounge owners are not protected by dram shop/gram shop laws that otherwise insulate bars and restaurants from liability for overconsumption. This means that companies must be vigilant in protecting themselves from liability by instituting compliance and risk-management procedures.
In some instances, such as California’s West Hollywood, which has far fewer safeguards and guidelines than Nevada, operators are largely left to their own devices in implementing adequate risk transfer and risk management, compliance, employee training, and consumer education to limit risk of liability. While the West Hollywood municipal code requires lounges to limit cannabis sales of cannabis “in an amount reasonable for onsite consumption,” the “reasonableness” standard is rife with ambiguity and could lead to disputes regarding liability and assumption of risk if a patron overconsumes.
Evaluating and preventing overconsumption and intoxication will be particularly difficult for cannabis when: patrons have varying experience levels with cannabis; products can be sold in more than a single serving, and no specific consumer education is required. Thus, even in locations that have more stringent regulatory oversight, companies would be wise to consult with experienced counsel and consultants to avoid or limit potential risks associated with regulatory uncertainty, civil liability, and government penalties for non-compliance.
This brings us full circle to the question of insurance. Even in the states that allow consumption lounges, very few insurance companies provide coverage for on-site consumption (although some do). If an exclusion prohibits coverage, the company may not have coverage for important and sometimes catastrophic events, such as property damage by fire, theft/robbery, cyber events, sexual harassment or discrimination claims by employees or others, and bodily injuries to, or caused by, patrons (on and off premises).
Most existing property, general liability, products liability, and other insurance policies — including those written for the cannabis industry — expressly exclude coverage for on-site consumption or bodily injury caused by intoxication. In fact, some existing cannabis insurance companies include a “health hazard” exclusion in their policies, which exclude coverage for any bodily injury arising in any way from the use of cannabis, including any health injury. Cannabis insurance policies may also exclude coverage for intentional or illegal acts, which some insurers may try to apply to any claim involving cannabis on the basis that the sale of cannabis violates federal law (the Controlled Substances Act), even if it is state legal.
For current licensees that are planning to open an attached or adjacent consumption space, current insurance policies may not cover injuries arising in the lounge space. Further, any failure to identify a change in business type could prompt an insurance carrier to deny coverage for subsequent claims based on a theory of misrepresentation.
In closing, cannabis owners should attempt to negotiate separate and/or broader coverage that carves out coverage for their cannabis-related activities, including on premise consumption, with their current insurer or seek to obtain coverage from a different carrier. Experienced insurance coverage counsel can assist with identifying reputable insurance brokers and negotiating policies that provide such coverage. Because of the limited options, companies would be wise to begin the process of identifying experienced insurance coverage advisors at the beginning of their licensing journey.
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. This week Bethany is joined by NCIA CEO Aaron Smith and Deputy Director of Government Relations Michelle Rutter Friberg. Join us every other Thursday on Facebook for NCIA Today Live.
Where are they now? This month, NCIA’s editorial department continues the monthly Member Spotlight series by following up with three of our Social Equity Scholarship Recipients as part of our Diversity, Equity, and Inclusion Program. Participants are gaining first-hand access to regulators in key markets to get insight on the industry, tips for raising capital, and advice on how to access and utilize data to ensure success in their businesses, along with all the other benefits available to NCIA members.
For reference, previous member spotlights
First off, we have rebranded. We are now Cannvas Events. The name change was part of our evolution and maturation as a startup. As we scaled, more resources became available for things like branding. We brought in Greg Hill of Brand Birth to deploy the science of branding and the end result was a new name, new logo, and new understanding of where we were situated in the regulated cannabis ecosystem. The transformation led to the planning and production of our signature Cannabis Event 2.0 offering, the inaugural Saturnalia Canna Carnival, taking place at the Trinity Health Arena in Muskegon, MI on August 2oth. We are powering a traditional indoor/outdoor carnival – rides and attractions included – with a hassle-free, normalizing consumption solution. If you’re in the Midwest, come join us as we celebrate the first year of an iconic, perennial cannabis festival. Tickets and info at cannvasevents.com and follow us @saturnaliacannacarnival
The Spotlight feature presented tremendous value. The first year of the cannabis startup journey is devoid of financial revenue. Unless you’re needle-in-the-haystack lucky, it’s not even a consideration. The money is flowing in the opposite direction. So, the only available revenue, or currency, are the relationships. If you’re fortunate, these become renewable resources upon which you can draw repeatedly, and managed properly, they have no expiration date. You can bank them like any currency and you have much more influence on their stability, than on fiat currency. For me, that one relationship was with Michael Schwamm, who leads the Duane Morris cannabis practice out of New York. Michael opened doors for me and got me into rooms that I was previously unaware existed. That access has made all of the difference for me, personally, and for Cannvas Events. And had it not been for the Spotlight, I would have never been in position to enjoy that access.
I’m impressed by the brilliant folks on the committee, and their dedication to making cannabis equitable. It takes time out of our grueling work days to contribute time on these committees but the contribution to making the industry better is crucial during these developmental years of cannabis. Perhaps our current misguided, harmful CA cannabis policies could have been prevented with more early participation from stakeholders who are stewards of the plant. However, there were many factors involved with the way CA policies were created, including special interest money from those who don’t care or want to see the industry fail.
It’s been a painful journey living through the consequences of these challenging policies as a cannabis operator. It takes a long time to change once it’s been passed. However, companies who are willing to work together in these important processes will survive and write a new path to move forward. Most of us can’t wait anymore for things to change so we need everyone’s active participation now, whether it’s writing an email to your constituents or being a part of NCIA!
Overburdensome taxes and high barriers to entry for licensing throughout the state are most obvious right now. The lack of diversity and equity, consumer education, state and federal funding for further research and development also play a huge role in CA’s struggles. I’m frustrated that the State doesn’t understand that those who have been dedicated to the industry, collaboration and this plant are the only ones who can truly guide this industry forward.
NCIA members can lend support by truly including legacy, equity, and other diverse teams into your conversations and partnerships, and opening our eyes to value brought to the table by different communities. I would also encourage members to think about ways we can create awareness to our consumers to make better buying decisions. We have left all the medical properties of cannabis while legalizing, and that’s also why the industry is failing. Lastly, we need to keep pushing for more consumption lounges and events!
At Endo Industries, we built our company on principles of collaboration, science, equity and inclusion. Most notably, we offer critical supply chain support through our tissue culture services, and certified virus-free clean clones for growers, breeders and brands. If you know good operators who could benefit from our support, please send them our way. I cannot stress enough that the work Endo is doing is crucial for the success of the supply chain right now.
We’ve gotten great exposure for being featured in Spotlight. Endo and myself are more internet searchable, which in this day in age means we are real people!
People started sharing the link to the Spotlight to use as an introduction to Endo and myself as a founder. We’ve been told by clients who decided to work with us because they came across the feature when researching Endo. It solidified their desire to pick us because we are bullish about our values because our business model is strategic and collaborative.
It’s great to be co-signed by a credible organization like NCIA, and it goes a long way for a small business that doesn’t have an abundance of marketing and PR resources. I’ve hid in the shadows for far too long. My journey and passion for cannabis needs to be told and celebrated. Endo as a company needs exposure so we can reach a larger audience. I’m grateful for NCIA and look forward to our continued relationship.
There is a lot new in the world of Next Level since our Equity Spotlight in September of 2021. In December, we had a booth, sponsored by the awesome team at The People’s Ecosystem, in Moscone Center at NCIA San Francisco. It was our first time attending an expo, let alone having a booth, and it was a great opportunity to grow our brand while creating relationships for future business opportunities. In the second week of the new year we launched our 1000 mg full spectrum coconut oil in Ivy Hill Oakland. And, later that month, we were welcomed into the Third Cohort of Momentum, Eaze’s Cannabis Business Accelerator. Two weeks before classes began, in early April, we launched our infused fast-acting brown sugar in 7 Star Holistic Healing Center. And in May, we attended MJ Unpacked NYC with other graduates of Our Academy.
California Cannabis is facing challenges on many fronts. Countless unnecessary hurdles to legal entry, political red tape, and excess packaging waste to name a few. But the biggest challenges are around security. Every week there is news of a new dispensary, farm, distributor, and friend being burglarized. High tech security systems, gates, and cameras are no match for organized thieves and slow police responses. Until we can get a portion of our excessive taxes dedicated to funding police divisions that specifically targets cannabis thieves, the best solution to combat this is to support your favorite brands by purchasing their products through legal cannabis retail sources.
Being in the Spotlight helped our company tremendously. It allowed us to grow our cannabis network as plant-touching and ancillary companies reached out from all over the country. In addition, the visibility it provided us helped connect with the team at The People’s Ecosystem which led to our booth at NCIA’s Cannabis Business Summit and our new supply chain partners. It provided the traction we needed to help us get to the next level.
By Charlena Berry, Cannabis Business Growth
The following is adapted from Breaking the Stigma.
The vast majority of U.S. adults support the legalization of cannabis, with 60 percent supporting legalization for medical and adult use, and 31 percent supporting medical use only. Only 8 percent say it should not be legal for use by adults in any scenario. These numbers are promising for those of us in the industry, but behind the numbers, many stigmas still exist.
Breaking the stigma against cannabis is the responsibility of each and every individual currently working in the cannabis industry. In particular, for those of us working in retail, we are on the front lines of changing the criminal and negative perceptions associated with cannabis.
As front-line workers, it is important to understand how the stigma against cannabis came about and how it has harmed not just the cannabis industry and cannabis users, but our entire country. We’ve all been lied to. These Big Lies have shaped our beliefs about race, cannabis, and addiction, and it’s time to unmask these Big Lies for what they are: lies.
The lie that Black men are inherently dangerous extends far, far back into our country’s history, but we’re going to start in the 1930s, with a man named Harry J. Anslinger. Anslinger became the commissioner of the Federal Bureau of Narcotics in 1930.
Anslinger initially spent most of his time chasing down bootleggers. When Prohibition ended in 1933, he suddenly found himself out of a job. For the Federal Bureau of Narcotics to continue to have purpose — and receive the funding that paid his salary — Anslinger had to find a new bogeyman to prosecute.
He chose marijuana, a term that itself has racist roots and was a way to otherize cannabis as a “Mexican drug.” At this time, cannabis was not regulated in any way in the United States, so he first had to make it illegal. In order to do that, he needed people to fear it. He figured, why not link it to something people already fear: Black people — particularly Black men.
And so, the propaganda began. Anslinger sparked a national anti-cannabis movement by tying cannabis usage to the Black community and other marginalized groups.
Obviously, Anslinger didn’t invent racism, but his propaganda propagated and amplified it. In short, Anslinger used the lie that Black men are dangerous to help make cannabis illegal, and then he weaponized cannabis against minority communities.
To this day, people of color are disproportionately impacted by the war on drugs. In fact, though Black and white people use cannabis at similar rates, a Black person is 3.64 times more likely to be arrested for possession. And, as industry professionals, we need to understand the racist roots behind the stigma of cannabis and do our part to elevate those groups disproportionately and unfairly impacted by the war on drugs.
Using fear of Black men, Anslinger convinced people that cannabis was dangerous. The idea that cannabis makes people dangerous is ludicrous to me. I grew up during the war on drugs, and I bought into many of the lies. I truly believed cannabis was bad, but never once did I think of cannabis users as dangerous.
As a child, I spent time around both alcoholics and cannabis users, and the difference was clear to me. Drunk people were violent, abusive, and dangerous. High people were safe, normal, and most importantly not violent.
However, in the drug education I received, I learned that all drugs are fundamentally bad, with no differentiation. Cannabis, meth, heroin, LSD, cocaine — they were all grouped together. And even when people acknowledged that cannabis was less harmful and addictive than harder drugs, they emphasized that it was still incredibly dangerous because it was a “gateway drug.”
Today, despite all the evidence that cannabis is safe for most people, the lie persists. Cannabis is classified as a Schedule I drug, meaning it has “no currently accepted medical use and a high potential for abuse.” Other Schedule I drugs include heroin and meth.
As a country, it’s long past time that we focused our attention on true dangers. As a cannabis retailer, it’s important to recognize that even though you know cannabis is not dangerous, your customers might not.
Because of the lie that cannabis is dangerous, it was not normalized (or legal) as a method of pain management. There was a need for pain management, though, and so in 1996, Purdue Pharma, under the direction of the Sackler family, developed and patented OxyContin.
It was hailed as a miracle drug that took all the pain away, as if by magic. Magic often comes at a cost, though, and in this case, the cost was hundreds of thousands of American lives — more than five hundred thousand, to be specific.
Within a few years, evidence emerged that the drug was addictive and led to overdose deaths. While we were all being told that cannabis was the gateway drug, Purdue Pharma was flooding our country with the real gateway drug—opioids. They funded research studies that supported the use of OxyContin, and Richard Sackler put intense pressure on sales managers to sell more.
This Big Lie has harmed hundreds of thousands of Americans. Opioids destroy lives, and the ripples extend beyond the addict alone. An entire generation of children will be shaped by addiction and the absence of their parents.
You may not be personally connected to the Opioid Endemic, but as a cannabis retailer, you are in the business of pain management. By understanding this Big Lie and providing people with an alternative to addictive opioids, you could literally save lives.
I understand the impulse to blame addiction on the addict. An addict’s struggles with addiction can be enough to tear their loved ones apart inside. You want to scream, “Why can’t you just quit?” But blaming addiction on the addict makes as much sense as blaming someone for having cancer, asthma, or migraines.
Who is responsible for addiction, then? The people who caused the Opioid Endemic, people like the Sackler family. As Patrick Radden Keefe puts it in Empire of Pain, “Prior to the introduction of OxyContin, America did not have an opioid crisis. After the introduction of OxyContin, it did.”
So, if you want to blame someone for addiction, blame the Sacklers. Blame Big Pharma. Blame the people who knew this drug was addictive but lied to us, told us it was safe, and pumped it into our communities.
Every single person I know who got addicted received their first pill or hit from a trusted source. This is how the Opioid Epidemic started. It didn’t start with irresponsible drug dealers on the street. It started between patients and doctors. Opioids moved through our world via trusted sources.
Cannabis and opioids are very different drugs. Cannabis is far safer than many people realize. Due to the nature of cannabis, I do not believe cannabis retailers will be creating addicts the way Purdue Pharma did, but it’s still important to understand this Big Lie because some of your customers may have struggled with addiction and need compassion from you.
These Big Lies are all connected. Without racism, cannabis wouldn’t have been stigmatized. Without the stigma against cannabis, we would have had a nonaddictive alternative to opioids. Without the lies that opioids are safe and that addicts are to blame for addiction, hundreds of thousands more people would still be alive today.
When it comes to breaking the stigma, you are on the front lines. In knowing the truth about where the stigma came from and why it’s so harmful, you can begin to change it.
One customer at a time, you can begin to undo the Big Lies and share the reality of cannabis.
For more advice on how to undo the Big Lies and share the Big Truths of cannabis, you can find Breaking the Stigma on Amazon.
Charlena Berry is the author of Breaking the Stigma: Racism, Lies, the Opioid Endemic, and Inviting Grandma to the Dispensary. In this book, she exposes lies that created the stigmas associated with cannabis, and how these stigmas must be addressed to see continued growth in the marketplace. She then outlines a framework that provides key strategies for retailers to implement to improve the customer experience and increase profitability.
Writing from her experiences in the industry, Charlena is a global cannabis business executive and the founder of Cannabis Business Growth, a premier cannabis business consulting firm. Prior to that, she spent more than a decade in Supply Chain and Retail Operations for Fortune 500 companies like Whirlpool and Office Depot/Office Max. She also serves as the Chief Operating Officer for The Cake House, a chain of dispensaries in Southern California.
By Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations
As Congress gets ready to beat the D.C. heat and leave Washington for their annual August recess, there’s at least one thing on their minds: cannabis.
Last week, Senate Majority Leader Chuck Schumer (D-NY) along with Finance Committee Chair Ron Wyden (D-OR), and Sen. Cory Booker (D-NJ) introduced their much anticipated Cannabis Administration and Opportunity Act (CAOA), which is now the Senate’s only pending legislation that would provide comprehensive cannabis policy reforms across the nation.
The landmark bill would remove cannabis from the federal Controlled Substances Act and move regulatory responsibility from the Drug Enforcement Administration (DEA) to the Alcohol and Tobacco Tax and Trade Bureau (TTB), the Food and Drug Administration (FDA), and other agencies to protect public health and safety. The bill would also institute a federal excise tax of 5-25% on cannabis on top of the already-hefty state taxes imposed on the industry, concerning advocates for small cannabis businesses and equity operators.
The long-awaited CAOA was introduced after sponsors circulated a discussion draft last year. NCIA and other advocacy organizations provided comprehensive feedback to the bill’s authors last year. Notable changes to the legislation include:
While the historic nature of the CAOA cannot be understated, the bill has a multitude of challenges ahead of it. Not all Senate Democrats support the legislation, making the 60-vote filibuster threshold nearly impossible. Plus, with only a couple dozen legislative days between now and the end of the session, time is also working against advocates.
Dovetailing with the introduction of the CAOA, the Senate Judiciary Committee’s Subcommittee on Criminal Justice and Counterterrorism will hold a hearing titled “Decriminalizing Cannabis at the Federal Level: Necessary Steps to Address Past Harms” this Tuesday. While the witness list has not been made public as of publication, expect the hearing to focus on the newly introduced legislation and how it would affect communities most impacted by the war on drugs.
In other news, the House and Senate will vote on a revised research bill, the Cannabidiol and Marihuana Research Expansion Act, this week. The bill is expected to pass both chambers and be sent to President Biden’s desk for his signature. The Senate bill is sponsored by Sens. Dianne Feinstein (D-CA), Chuck Grassley (R-IA), and Brian Schatz (D-HI) and passed by unanimous consent in March. The House bill is sponsored by Reps. Earl Blumenauer (D-OR) and Andy Harris (R-MD), and passed 343-75 in April. One of the notable areas of compromise? The House bill would have allowed researchers to do their studies on cannabis that’s actually being sold to consumers in dispensaries. That was removed during negotiations, meaning that researchers will still have to obtain their cannabis from the University of Mississippi’s cultivation facility.
There’s still time before recess begins, so make sure you stay tuned to NCIA’s podcast, social media, and newsletter to stay up-to-date on all the latest from Washington, D.C.! Interested in making more of an impact? Don’t forget to register for our upcoming 10th Annual Cannabis Industry Lobby Days on September 13-14, 2022!
by Aaron Smith, NCIA’s CEO and Co-founder
History was made today as Senate Majority Leader Chuck Schumer (D-NY) along with Senators Ron Wyden (D-OR) and Cory Booker (D-NJ) introduced the Cannabis Administration and Opportunity Act which would finally remove cannabis from the federal Controlled Substances Act and begin the process of federal regulation.
For the last year, NCIA has been working behind the scenes to ensure this landmark legislation not only ends prohibition but also creates an environment where small and medium-sized businesses can thrive under national legalization. These businesses – who we now call “Main Street Cannabis” – are the heart of our industry and we’re proud to have been giving them a seat at the table in our nation’s halls of power for over 12 years.
We will continue working with our allies in the Senate to advance this bill and advocate for some necessary amendments to better ensure that small, equity, and women-owned businesses (in particular) are well-positioned to thrive after the end of federal prohibition.
We would not be where we are today if not for your support which has allowed us to effectively represent the interests of small businesses like yours in the halls of Congress and in the court of national public opinion.
I hope you’ll join us in making national legalization a reality by making your voice heard at our upcoming 10th Annual Cannabis Industry Lobby Days in Washington, D.C. September 13 & 14!
Thanks to your membership, NCIA’s government relations staff represents Main Street Cannabis in D.C. every day but Lobby Days is your chance to show up and tell your unique story to our nation’s lawmakers, firsthand.
Lobby Days is also the best opportunity to connect with your fellow industry leaders who are truly invested in the future of cannabis and sensible national policy. Please register today so you don’t miss out on making history with us! Reach out to my colleague Madeline Grant to learn more about how you can be as impactful as possible at this year’s Lobby Days.
Thanks, as always, to all NCIA members for their support of the cannabis industry. If your company is not yet a member of NCIA, now’s the time to join and have your voice heard in the halls of Congress.
Watch this video update with Aaron Smith and Michelle Rutter Friberg:
By Eric Rahn, Managing Director, S2S Insurance Specialists
Harassment, wrongful termination, race, gender and age discrimination, and hostile work environments are wreaking havoc on the cannabis industry, resulting in an upswing of recent lawsuits that are costing companies hundreds of thousands of dollars and causing harm to the workforce and brand damage that is – oftentimes – beyond repair.
With the average claim costing small-to-mid-sized cannabis companies between $100,000 and $500,000, there needs to be more of a focus on creating a workplace environment free from harassment, discrimination, and bias. Furthermore, cannabis businesses need to be proactive in having the proper insurance policies in place.
You may make a mistake and be exposed to liability. You may do everything right, yet still be sued. Employer’s Protection Liability Insurance (EPLI) is key to protecting your business from employee-related risks and detrimental lawsuits.
EPLI is a type of management liability insurance that helps safeguard businesses against employee claims alleging inappropriate or unfair treatment. Former, current, and potential employees who believe the company has violated their legal rights can file lawsuits for a variety of reasons. The most frequent types of claims covered under EPLI include sexual harassment, discrimination, and wrongful termination/retaliation. However, EPLI can also cover a broader array of employment issues, such as breach of an employment contract, negligent evaluation, failure to employ or promote, wrongful discipline, deprivation of a career opportunity, wrongful infliction of emotional distress, defamation, invasion of privacy and mismanagement of employee benefit plans.
While policies vary, EPLI generally covers settlement, judgment, legal costs, fines and penalties. EPLI also protects a company’s directors and officers, management, and other employees from being held personally liable in a lawsuit.
Sexual Harassment. According to the 2020 report, Prospects and Pitfalls: Confronting Sexual Harassment in the Legal Cannabis Industry, “sexual discrimination and harassment plague the legal cannabis industry. Moreover, the industry’s past illicit nature threatens to perpetuate employer misconduct.”
Over the past few years, there has been a surge in sexual harassment claims in the cannabis industry. One such suit filed by the U.S. Equal Employment Opportunity Commission (EEOC) alleged that a general manager at a medical marijuana dispensary in Maryland engaged in “unwelcome touching,” made “highly offensive sexual comments to and about staff and customers,” and “showed an employee a nude picture on his phone.” Although employees complained for months about the harassment, the company did not investigate until after it learned a complaint had been filed with the EEOC. The courts ruled in favor of the plaintiff, and the dispensary and its parent company were remanded to pay $175,000 to settle the suit.
The cannabis industry is plagued by many of the same gender issues as other mainstream industries. In a study conducted by WeedMaps, 53% of women in the cannabis industry have experienced workplace harassment with 46% reported feeling sexually harassed. However, it’s not just women and lower-level employees making claims. Last February, a large publicly traded California cannabis flower distributor came under fire when its former Chief Revenue Officer – a male – accused the company of fostering a culture of sexual harassment and coverup. In the official complaint, the executive said he was subject “to severe and pervasive sexual harassment, both hostile work environment and quid pro quo, as a result of unwanted sexual advances and other discriminatory conduct.” The pending court case seeks an unspecified amount of damages from the company and also names three of its related companies liable.
Discrimination. Title VII is the Federal Civil Rights Law that prohibits employment discrimination on the basis of race, color, gender, national origin, and religion. For women, the cannabis industry remains a harassment-filled boys club. The latest in the battle to fight misogyny in the cannabis growing and retail industry, is a lawsuit filed by two workers at cannabis-growing companies in California who claim they were “wrongly fired after protesting workplace conditions and gender bias, including prohibitions on women working in growing rooms and pregnant women working at the companies.” The complaint also alleges that the companies conducted “a sham investigation of their complaints of bias, to further create pretense for firing them.” The plaintiffs are seeking compensatory and punitive damages, as well as other penalties against the companies.
Wrongful Termination/Retaliation. According to the EEOC, this is the most common claim brought against employers. The latest case to make headlines was filed in June 2022 by a former employee of a Chicago-based health center who claims she was fired under the pretense that she had bullied a coworker, but in reality she was terminated because she had reported her supervisor’s unwelcome behavior. In the suit, she alleges “violations of Title VII of the Civil Rights Act of 1964 and the Illinois Human Rights Act, and asked the court for damages for emotional distress, humiliation and her loss of employment, as well as punitive damages.”
Navigating employee-related issues can be tricky business. Cannabis companies that land in legal hot water are often more focused on boosting profits and growing their business rather than implementing HR policies and ensuring they have the proper insurances in place to protect themselves against legal claims. The dozens of companies over the years that were embroiled in legal litigation and did not have EPLI learned the hard way that they are solely responsible for paying significant defense fees, compensatory and punitive damages, fines and penalties.
When considering an EPLI, it is critical to negotiate policy limits, selection of counsel and defense limits, when you are first obtaining EPLI insurance or when you are renewing your policy. A qualified cannabis insurance broker can walk you through all the options and guide you on the policy that best meets your needs and budget.
While EPLI can be offered as a stand-alone policy, it is typically more affordable to combine EPLI with an existing policy, such as Directors & Officers Liability (D&O). Certain policies automatically include sexual harassment, but others do not, or you may be required to get a special endorsement for sexual harassment. Keep in mind that coverage is specific and EPLI cost is based on the business type, employee numbers and past lawsuits associated with the organization. Your broker should do the leg work for you and present coverage options and cost comparisons, so management can make an informed decision.
Prevention is the cornerstone of reducing the risk of employee-related lawsuits. However, even if you develop and enforce a zero-tolerance policy for sexual harassment, discrimination, and other harmful issues, and take immediate and appropriate action when a complaint is made, claims can and will happen.
As you hire more employees, your risk of discrimination and sexual harassment increases. An EPLI policy can help your legal defense and settlement of such claims. In today’s climate, business owners and managers need to be proactive and understand the risk management tools and options available to them to protect their business.
Eric Rahn, Managing Director of S2S Insurance Specialists, is a highly specialized insurance broker and risk management professional with over 30 years of experience providing C-Suite executives strategies and solutions that protect and safeguard their businesses.
Eric has held several executive positions in the maritime and casino/gaming industries, including CEO of the largest privately own casino concessions company operating on cruise ships around the world. He transitioned his knowledge of corporate business practices in highly regulated industries into the burgeoning cannabis space, establishing S2S Insurance Specialists in 2017.
Eric has served on the National Cannabis Industry Association’s (NCIA) Risk Management Insurance Committee since 2016. He is also a national speaker on cannabis insurance and author of NCIA’s Risk Management and Insurance’s “Introduction into Cannabis Insurance.”
by Justine Charneau, Eagle Protect
Single-use nitrile gloves are a required necessity of personal PPE in the cannabis industry. But cheap, ill-fitting gloves can lead to workplace injuries, the most common of which include restricted hand mobility, occupational skin disease, and even reduced dexterity. Aside from promoting hygienic practices, quality gloves can reduce, limit, and even prevent repetitive motion stress injuries that can lead to further disorders and damage to the hands and fingers.
In the cannabis industry, problems such as cuts, pinches, and sprains occur during the intricate trimming actions undertaken during the harvesting and processing stages. These hand-related cultivation stages typically include wet trimming, dry trimming, and pre-harvest trimming. While it’s true that machine-based automated trimming is a faster option, some cannabis cultivation operations prefer hand trimming, which they believe produces more attractive-looking buds and flowers for the final presentation. Speaking strictly from a hygienic perspective, gloves offer and provide two-way protection – helping to prevent cross-contamination from user to product. But quality gloves also protect the wearer from dermal exposure to THC, fertilizing chemicals, and pesticides used in the growing process.
Occupational skin disease, such as dermatitis, is one of the most common non-trauma related occupational illnesses in the U.S. Just how common are these concerns? Each year, among all industries, approximately 1.8 million American workers suffer from OSD at a total annual cost of up to $2 billion. The hand is the most common site affected by OSD, and protective gloves were found to be the most common primary cause.
As noted, the cannabis cultivation process includes worker safety considerations to prevent injury from awkward posturing, as well as the excessive, repetitive effort necessary during the trimming process. These repetitive motions can lead to strains of the muscles, tendons, ligaments, and even damage to blood vessels. These undesirable outcomes are all classified as work-related musculoskeletal disorders, or WMSDs. According to industry studies of on-the-job cannabis injuries, occurrences involving the fingers and hands happen with the most frequency. But these maladies aren’t just common in the cannabis industry. In the food industry, the median time away from work for repetitive-motion WMSDs associated with grasping, holding, carrying, or turning objects was 17 days. Considering all industries combined, $90 million in indirect costs (hiring, training, overtime, and administrative costs) are incurred annually in the U.S.
When cannabis cultivation operations select cheap disposable gloves over a more quality product, there are six primary hazards of concern. These include glove failures and inconsistencies such as ripping and tearing (a common complaint), glove contamination risk, glove waste/disposal costs, hand injuries, WMSDs, and even reduced productivity. At the heart of the issue is the inclusion of poor quality raw materials and cost-cutting in the manufacturing processes, both reducing the quality of products available to customers.
The primary cause of OSDs, WMSDs, and other common hazards related to the use of poor quality gloves is directly attributable to the raw materials used in the glove manufacturing processes. Simply put, cheap toxins and chemicals in gloves can leave users more susceptible to skin irritations and dermatitis. In many cases, because these raw materials are so poor, the manufacturer must produce thicker gloves to prevent ripping and tearing. But in the majority of cases, the increased thickness won’t make much of a difference, and leads to glove bulkiness and reduced flexibility, causing unnecessary muscle stress and strain among users.
What are the consequences of OSD and WMSD-related injuries? While the specific data isn’t as commonplace within the cannabis industry, workers in the food-handling industry with OSD take much longer periods to return to work than in other glove-wearing professions. It’s estimated that 40% of all worker’s compensation claims involve problems related to exposed skin. As much as 65% of those claims involve hands or upper extremities, with 25% of these workers affected missing up to 10-12 days of work annually. WMSDs account for one-third to one-half of all occupational injuries and illnesses and $15-20 billion in workers’ compensation costs each year.
Cannabis cultivation operations must put more thought and consideration into the gloves they purchase for their workforce. Rather than purchasing decisions based solely on pricing, disposable glove providers should be thoroughly vetted and reviewed. To reduce the risk of skin irritation, good quality gloves that meet the improved standards for low chemical and toxic exposure should be used. Due to the high quality of materials found in the new tech lightweight gloves, the wearer will find that they can be more durable than their thicker counterparts. In the end, the quality of glove you choose to purchase may end up saving you up-front costs but could wind up costing your product budget and staffing needs dearly on the back end.
Justine Charneau is the head of cannabis industry sales at Eagle Protect, a disposable glove supplier dedicated to the responsible sourcing of quality products that ensure customer safety and impact reduction, ultimately mitigating customers’ risk. Eagle Protect is the only global PPE supplier that is a Certified B Corporation, a designation that a business has met the highest standards of verified performance, accountability, and transparency. She can be reached at justine@eagleprotect.com.
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