Before we dive into what to watch this Congress, we’d like to acknowledge the totally unacceptable and disgusting violence that besieged the Capitol recently. You can read NCIA’s statement on the insurrectionhere.
by Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations
Photo By CannabisCamera.com
We’re barely halfway through January, and it already feels like so much has happened in 2021! We at NCIA anxiously watched along with the rest of the country to see who would be victorious in the Georgia Senate races and, subsequently, which party would control the U.S. Senate. Both of the Democrats, Rev. Raphael Warnock and Jon Ossoff defeated their Republican opponents and won their races —- ensuring that the Senate will be split 50-50 with Vice President-elect Harris being the tiebreaker.
The 117th Congress has barely begun, but after Inauguration Day on January 20th, things will really take off here in the nation’s capital. Keep reading to see my answers to FAQ’s for the new Congress:
Whatever happened to the SAFE Banking Act?
During the 116th Congress, the SAFE Banking Act (H.R. 1595/S. 1200) became the first cannabis-related bill to be passed by a chamber of Congress. In September of 2019, SAFE came to the House Floor under a suspension of the rules and passed by a whopping 321-103. While the bill had a hearing in the Senate Banking Committee back in the summer of 2019, it never received a markup or moved further than that. In addition to the bill itself, the SAFE Banking Act was also included in not one, but two COVID-19 relief packages passed by the House, colloquially known as HEROES I & II.
This session, the SAFE Banking Act will be back, and with even better chances to pass! The bill will be reintroduced in both the House and Senate in the next 1-2 months and we expect little to no changes to the text. Additionally, we’re also continuing to work with our Hill champions on this issue to see if we can get the language included in the next COVID-19 relief package — something that both President-elect Biden and Democratic leadership has said is pretty much priority number one.
In the meantime, keep an eye out for reintroduction and for how many cosponsors the bill has when it’s dropped — when the 116th Congress ended, SAFE had already passed the House as but also had 33 Senate cosponsors — that’s one-third of the entire chamber!
What’s next for the MORE Act and comprehensive cannabis reform? Is legalization on the horizon?
Cannabis policy ended the year on a high note (no pun intended!) when the Marijuana Opportunity, Reinvestment, and Expungement Act (H.R. 3884), commonly known as the MORE Act, passed out of the House of Representatives by a vote of 228-164.
As I mentioned earlier, all eyes were on the Georgia Senate races as we strategized over what could be possible for the 117th Congress depending on the outcome. With the results in, we now have a better idea about what’s possible with comprehensive reform, but there’s still a lot of unknowns. We know that the MORE Act will be reintroduced sometime in the coming months in both the House and Senate. In the Senate, the lead sponsor was Kamala Harris, who is now Vice President-elect, which means another Senator will have to pick up the torch. I can’t share with you who it’s going to be just yet, but trust me when I say they will be a wonderful lead and are a true champion for cannabis reform!
A reintroduced MORE Act will likely have a good number of edits and changes, but the underlying intent of the bill will be the same: to remove cannabis from the Controlled Substances Act and help repair the harms the war on drugs has done — specifically to communities of color.
We also know that comprehensive reform, in general, has a better chance of advancing given that Democrats now control the Senate. Sen. Schumer (D-NY) was quoted in October as saying if he’s reinstalled as Majority Leader he “will put this bill in play,” and “I think we’ll have a good chance to pass it”, talking about his own bill, the Marijuana Freedom and Opportunity Act (S. 1552).
All of that being said, legalization, or the passage of comprehensive reform is far from a done deal. Legislation requires 60 votes for passage in the Senate, and we have a lot of hard work to do to get to that level of support in the upper chamber. In the House, Democrats have an even slimmer majority now than during the 116th Congress, so we also have to make sure we don’t lose support there.
What about appropriations?
You’ve been involved in cannabis for a long time if you remember when the appropriations process was the only way to get Congress to talk about this issue. But now, with Democrats controlling both chambers, you may be hearing more about these amendments again.
Appropriations bills are legislation in Congress that “appropriates,” or sets aside, federal funds to be divided between specific federal government departments, agencies, and programs. Read more about this process and why it matters for cannabishere.
Over the last few years, the House has continued to pass marijuana-related amendments but were unable to get through the Senate due to Republican control and a “gentleman’s agreement” between the Chair and Ranking Member of the Senate Appropriations Committee. But now, all of that will change.
In the past, appropriations amendments have been introduced that touch on a multitude of issues: research, veterans, medical and adult-use cannabis, hemp, banking… the list goes on! In this session, expect to see cannabis-related amendments included in the final budget. Just remember that budget bills must be passed annually, so anything that comes into law this way must be renewed again next year!
What’s going to happen at the committee level?
If you’re following cannabis policy at the federal level, definitely keep your eyes on what’s happening in various congressional committees. Given who controls both chambers, all of the committees will now be chaired by Democrats, which means you’re going to see a lot of cannabis-related bills come up for hearings and markups. Some I’ll be keeping my eye on, including both chambers’ appropriations, financial services, tax, and judiciary committees.
The opportunities for reforming our outdated cannabis laws have never been brighter than they are right now as we begin the 117th Congress. Bills are going to begin dropping left and right — and that’s because there’s a ton of excitement, enthusiasm, and optimism about what we can accomplish over the next two years.
Want to learn more about what’s possible? Make sure your company is an active member of NCIA and register for our next members-only webinar with our government relations team on Wednesday, January 27, or, if you can’t make it, hop on over to NCIA Connect to chat with us and learn more about what we’re working on in D.C.!
#IndustryEssentials Webinar Recording – Service Solutions: Coming out of the Dark Ages – The Future of Controlled Environment Agriculture in Sealed Greenhouse Cultivation
NCIA’s #IndustryEssentials webinars are our weekly educational series featuring a variety of programs allowing us to provide you timely, engaging and essential education when & where you need it most.
The 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 of our Service Solutions series originally aired on Wednesday, December 16 we were joined by the team at Ceres Greenhouse Solutions for a conversation in which they highlighted some of the important technologies involved in modern greenhouse design, as well as their unique approach to facilitating cultivation to market strategies for those looking to enter this world of cannabis growth.
What is Controlled Environment Agriculture (CEA)? What is sealed cultivation? What does control actually mean when we talk about growing? This webinar, brought to you by Ceres Greenhouse Solutions, will explore these questions and why they matter for professional cannabis cultivation. Controlled Environment Agriculture (CEA) in cannabis has been heavily focused on indoor environments with artificial lighting. Our focus is on incorporating principles of CEA with the intelligence of nature in order to maximize plant photosynthesis and facility energy efficiency. Using sunlight as the main ingredient, we will discuss how to create an ideal environment for high yielding and high quality production.
Learning Objectives
1. An understanding of what is traditionally meant by “Controlled Environment Agriculture” and how Ceres integrates CEA into our holistic facility design.
2. How to make a business argument for “Controlled Environment Agriculture”; better ensuring cultivation to market, production management, and prediction.
3. An explanation of different types of grows and the advantages and disadvantages of them, including: Indoor Grow, Sun Tubes (Skylights), Traditional Greenhouses, and the SunChamber™.
4. What is meant by the term “controlled”? How does control relate to energy consumption and increasing yields?
5. A holistic understanding of what a plant needs to thrive; from light absorption to photosynthesis.
Panelists:
Josh Holleb
Co-Founder and Co-Owner
Ceres Greenhouse Solutions
In these last few days of the year, I’m as eager as anyone to put it all behind us in the rearview mirror, but I’m also so grateful of what our members have made possible in 2020.
As we close out NCIA’s 10th year as the cannabis industry’s largest and most respected trade association, I’m just in awe of all the progress that has been made for the cannabis industry in spite of so many challenges.
When state governments were first grappling with the response to the pandemic, most deemed cannabis businesses as “essential,” allowing our industry to stay open to serve patients and adult consumers. Just a few years ago, this level of recognition as a vital sector of the economy would have been unthinkable — even to me!
What’s more, legal cannabis sales broke records throughout the months of this pandemic. It should be no surprise that #CannabisIsEssential to getting through a global pandemic.
Although our lobbying operation went virtual this year, NCIA was able to move the ball further than ever in Congress. The House of Representatives ended the year by passing the groundbreaking MORE Act, marking the first time either chamber of Congress has approved legislation to legalize cannabis since its prohibition over 80 years ago.
Public support for sensible marijuana policy and the legal cannabis industry stands at its all-time high. During the most divisive election in modern U.S. history, voters from across the political spectrum support ending prohibition and putting cannabis behind a regulated counter. In fact, adult-use cannabis initiatives garnered more votes than President-Elect Biden in every state where both appeared on the ballot — including the two he decisively won (New Jersey and Arizona). The hundreds of forward-thinking businesses that support our advocacy and education efforts have made this incredible progress possible, in spite of an otherwise dismal year.
It’s been almost ten months since we have been able to host in-person events but NCIA has continued to keep our community connected and informed through our Industry Essentials educational webinar series, Cannabis Caucus (cyber) events, and the Cannabis Business Cyber Summit.
NCIA also launched a second weekly podcast offering, The Cannabis Diversity Report, and celebrated more than 200 episodes of The Cannabis Industry Voice podcast (also top 50 U.S. Business News charts for Apple Podcasts), plus monthly live video updates with NCIA Today. During this temporary break from face-to-face networking, we’ve created several digital sponsorship opportunities for savvy cannabis businesses to elevate their brand while also supporting the work we are doing to advance the industry.
Amidst our national reckoning over systemic racism and police brutality, NCIA launched our Equity Scholarship program which now provides membership benefits to over 100 equity operators. Thanks to the financial support of a growing number of businesses that have stepped up to support social equity in cannabis, this important program will continue to be a priority in 2021 and beyond.
2020 was also a great year to be a member of NCIA. As the only full-service trade association in the cannabis industry, we take pride in providing our members with the resources they need to gain a competitive advantage over the industry’s free-riders and isolated operators.
Over the past year, we’ve expanded our membership benefits with the launch of our exclusive online community, NCIA Connect, as well as significant member-only discounts onSimplifya’s compliance platform.
I take pride that NCIA is the only association in cannabis providing our members with this kind of direct ROI in addition to professional political representation in our nation’s halls of power.
Our members are building the next great American industry. It’s an honor representing them through the thick and thin. Progress takes time but the work we are doing to build support for that industry in the halls of Congress and among the voting public is paying off.
On behalf of the whole team at NCIA, I wish you a happy holiday season and new year! I hope you’re enjoying it safely with those you love. We have even more in store for 2021 as we continue to support our members through advocacy, education, and community, so stay tuned.
With gratitude,
Aaron Smith Co-founder & CEO
P.S. If you are not yet a member of NCIA but somehow read all the way to this point, please take just a couple of minutes more to join today. NCIA membership is a simple investment in the future of your business and our industry.
P.P.S If you are a member, reach out and say hello. I’d love to hear about your plans for 2021 and find out how NCIA can help your business succeed.
#IndustryEssentials Webinar Recording – NCIA Committee Insights: Retail Cannabis During a Pandemic
In this edition of our Committee Insights series originally aired on Wednesday, December 9th we were joined by members of Retail Committee to discuss some of the ways the ever-evolving cannabis industry has changed during the COVID-19 pandemic, specifically in the retail space, as well as some of the best practices you can follow to ensure the safety of your staff and clientele.
Panelists also discuss some ideas from retail insiders on how the retail cannabis space may evolve going forward due to the pandemic.
Learning Objectives
• How retail cannabis has evolved since COVID
• COVID retail best practices
• How might the retail cannabis industry change going forward
Speakers include:
Ryan Rappaport
Co-Founder & Managing Partner
Digital Venture Partners
(Moderator)
Gary Strahle
Technical Architect
3KEYMEDIA LLC
Jason Cragholm
Founder
QualSCORE
Larina Scofield
Director of Retail Operations
Lucy Sky Cannabis Boutique
Video: NCIA Today – Special Episode with NCIA’s Michael Correia On The Historic MORE Act House Vote
Join NCIA Deputy Director of Communications Bethany Moore and our Government Relations Director Mike Correia for a quick discussion about last week’s historic passage of the MORE Act.
On Friday, December 4, the House of Representatives made history by voting to approve H.R. 3884, the Marijuana Opportunity, Reinvestment, and Expungement (MORE) Act.
The MORE Act would remove marijuana from the federal Controlled Substances Act and work to repair the social and personal harms caused by federal marijuana enforcement. This is the first time since marijuana was made federally illegal that either chamber of Congress has held a floor vote on- or approved- a bill to make the substance legal again.
The final vote count of 228-164 fell mostly along party lines, with five Republicans crossing the aisle to support, and six Democrats voting to oppose.
This monumental victory shows just how far Congress has come over the years. Although this vote more closely aligns the House of Representatives with the majority of voters who overwhelmingly support cannabis legalization, the Senate is a different story.
#IndustryEssentials Webinar Recording – NCIA Committee Insights: Harvesting, Ergonomics of Trimming and Contracting
In this edition of our Committee Insights series originally aired on Monday, December 7th we were joined by a panel of commercial cultivation experts, along with special guests from the Occupational and Physical Therapy industries, for a comprehensive look at the art of trimming and how they handle the final stages of cultivation.
Harvesting is a laborious process. Even with machinery and thoughtful process engineering, the bulk of cannabis harvesting, including cutting down mature plants, hanging in drying rooms, and the artful hand trimming necessary for top-dollar bag appeal, are done by people.
For employees and owners, understanding the ergonomics of the harvesting and trimming process, from posture and Repetitive Motion Injuries (RMIs) to selecting the appropriately sized scissors, is an important aspect of People Health. The goal of ergonomics is to largely prevent musculoskeletal injuries and encourage higher, sustainable production efficiencies.
Panelists:
Jordan Stauder
GrowRay Lighting Technologies
Alex Hearding
National Cannabis Risk Management Association
Dr. Chris Hughes
Atlas Performance
LaToyia Rucker
Calyxeum Detroit
Presented By:
NCIA’s Cultivation Committee
Senate Race Runoffs in the Peach State
By Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations
As you’ve probably heard by now, which party controls the Senate won’t be known until January 5 — but those results could quite literally determine if marijuana will become federally legal over the next few years.
In Georgia, no candidate can advance through a primary or a general election system without first earning more than 50% of the votes. If no one does, the top two vote getters advance to a runoff election, ensuring that one will earn the majority of votes cast.
This year, the state’s two Senate races — one regular, the other a special election to fill the remainder of a retired senator’s seat — have gone to a runoff. The first will be between incumbent Sen. David Perdue (R) and Democrat Jon Ossoff; the latter will be between Republican Sen. Kelly Loeffler and Democrat Rev. Raphael Warnock. If Democrats win both seats, the Senate will be tied 50-50, and Vice President-elect Kamala Harris would be the tie breaking vote.
It can’t be overstated that the Democrats have an uphill (but not impossible!) battle ahead. In November, Sen. Perdue garnered 86,000 more votes than Ossoff, while Warnock benefited from the fact that two Republicans — both Sen. Loeffler and Rep. Doug Collins — were on the ballot in his race, splitting the party’s votes.
And of course, it’s 2020, so I would be remiss not to mention the pandemic! The runoff is taking place in an off-election year in (what will likely still be) the middle of a serious surge of COVID-19 cases. On top of that, Republicans historically have a stronger track record of turning out in runoffs in the state.
Despite all of that, Democrats are working hard to turn out the vote and organize early. In addition to relying heavily on both first-time voters and Black voters, Democrats are also hopeful that young voters will be the key to winning the runoff in January. Ossoff recently said:
“There are 23,000 young people here in Georgia who will become eligible to vote just between the November election and this January 5 runoff, and a decade of organizing, much of this work led by Stacey Abrams, has put the wind in our sails here in Georgia. What we’re feeling for the first time in four years is hope.”
As I said before, which party controls the Senate could quite literally be the difference between whether or not cannabis could become federally legal in the next one to two years. Senate Minority Leader Chuck Schumer (D-NY) was interviewed in October and said:
“I’m a big fighter for racial justice, and the marijuana laws have been one of the biggest examples of racial injustice, and so to change them makes sense. And that fits in with all of the movement now to bring equality in the policing, in economics, and in everything else. Our bill is, in a certain sense, at the nexus of racial justice, individual freedom and states’ rights.”
Schumer was referencing the bill he introduced, the Marijuana Freedom and Opportunity Act, which would remove cannabis from the Controlled Substances Act, allowing states to set their own policies. It also includes provisions to help funding to cannabis businesses owned by women and people of color through the Small Business Administration; funding studies on traffic safety, impairment detection technology, and health effects of cannabis; restricting advertising that could appeal to children; and setting aside $100 million over five years to help states develop streamlined procedures for expunging or sealing prior cannabis convictions.
Time is of the essence. Voters must be registered by December 7 in order to participate in the runoff election. If you’re in Georgia, or know anyone who is a resident, please check out the Cannabis Voter Project to learn more and make sure you’re ready to vote. If you can, consider making a donation to the Ossoff campaign or the Warnock campaign. The future of cannabis legalization in this country depends on it!
What to Watch in the Lame Duck Session
by Madeline Grant, NCIA’s Government Relations Manager
Following the presidential election, we’ve entered the lame-duck session. This occurs after an election, but before new members are sworn in, and allows for time on the legislative calendar for Congress to pass additional legislation. Before Congress heads home for the holidays, a new administration takes office, and the 117th Congress returns, let’s take a look at what to keep an eye on during the lame-duck session.
Banking Access
The House of Representatives has approved the SAFE Banking Act in some form THREE times in just over a year. The text of the Secure and Fair Enforcement (SAFE) Banking Act has passed through two different COVID-19 relief packages on the House side: the HEROES Act, and the HEROES Act 2.0, and also passed as standalone legislation in September 2019. However, in the upper chamber, we’ve seen Senators criticize including marijuana components in coronavirus legislation, arguing that it is not germane to the issue at hand. Specifically, Senate Majority Leader McConnell (R-KY) took to the floor to complain that the House bill provides “special treatment to the marijuana industry,” stating that the legislation “mentions the word ‘cannabis’ more times than the words ‘job’ or ‘jobs.’” Regardless, it’s evident that SAFE banking has bipartisan support and could help mitigate the spread of the virus by ending the industry’s reliance on cash transactions.
Additionally, Senate Minority Leader Chuck Schumer (D-NY) introduced a coronavirus relief bill last month that contains the SAFE Banking Act. We’ve seen pushback from the Republican-controlled Senate and the Trump administration, however, Senator Schumer’s inclusion of cannabis provisions is a positive sign that Democrats will make an effort to continue to push for these provisions. As Congress and the Trump Administration continue to negotiate coronavirus relief legislation, we will continue to keep our eyes on banking. Also, a friendly reminder to call our representatives and senators and encourage them to support cannabis banking reform. If they are already a champion on our issues, thank them for their support.
The Marijuana Opportunity, Reinvestment and Expungement (MORE) Act
Regardless of all of the trials and tribulations that 2020 has brought, there is still great excitement and optimism around the MORE Act! House Majority Leader Steny Hoyer (D-MD) confirmed that marijuana legalization is still on the table before the presidential transition and will get a vote in December. Previously, Representative Hoyer announced this past summer that the chamber would vote on the MORE Act in September, but that plan was postponed following pushback from certain offices who were concerned about the optics of advancing cannabis reform before passing another coronavirus relief package.
The MORE Act is the most comprehensive cannabis legislation to date. The bill would: federally deschedule cannabis, completely removing it from the Controlled Substances Act, expunge the records of those with prior marijuana convictions and impose a federal give percent tax on sales, revenue from which would be reinvested in communities most impacted by the drug war. Additionally, the legislation would also create a pathway for resentencing for those incarcerated for marijuana offenses, as well as protect immigrants from being denied citizenship over cannabis and prevent federal agencies from denying public benefits or security clearances due to use. The fact that we have a potential vote on the MORE Act before the end of the 116th Congress is exciting news for the cannabis community. As we gear up to the end of the year, look out for updates on the MORE Act, and remember, please call your representative and senators and urge them to support this significant piece of cannabis legislation.
Success Through Hardship in the 116th Congress
This year has been unlike any other year we’ve faced as a country. Since March, Congress has exhausted their legislative efforts to agree on coronavirus relief bills. With differences on both sides of the aisle and with the administration reaching any sort of legislative success seems near impossible. However, on a positive note we’ve seen our champions on Capitol Hill not give up on cannabis-related provisions. Although we are faced and halted by frustrations in the Republican-controlled Senate, we still see members of Congress working to include the much-needed cannabis reform our nation is calling for. Not to mention Election Day – Arizona, Montana, New Jersey, and South Dakota all passed measures making cannabis legal and regulated for adults, while Mississippi and South Dakota chose to legalize medical cannabis. Every success and victory in cannabis policies around the country creates more momentum for Congress to fix the out-dated cannabis laws. As we wrap up the 116th Congress, we will be left with more momentum than ever before to enter the 117th Congress to reach new legislative victories.
2021 Cannabis Policy Outlook
Election Night 2020: Victories For Sensible Cannabis Policies
by Morgan Fox, NCIA’s Director of Media Relations
While the country waits for the outcomes of national elections that could very well impact the future of cannabis policy reform advocacy, we do have a LOT to be happy about today!
Last night, adult-use and medical ballot initiatives SWEPT the elections, passing in every state in which they were considered!
Voters in Arizona, Montana, New Jersey, and South Dakota all passed measures making cannabis legal and regulated for adults. South Dakota also approved a medical cannabis initiative by an even greater margin, and was joined by Mississippi where an overwhelming majority of voters not only supported medical cannabis but chose the much more comprehensive of two competing options.
You can learn more about these initiatives here and how they fared in the elections here.
There are a lot of important milestones and lessons to observe from these historic results.
First, let’s talk about New Jersey. Roughly two thirds of voters in the state approved this ballot measure, which was referred to them after lawmakers were unable to pass similar legislation last year. This is a big jump in ballot approval margins; before now, the most popular legalization referendum was in California, which approved Proposition 64 in 2016 with 57% of the vote. That’s a 10% margin increase in just four short years! The large population and huge market potential (more than $1.5B by 2025) are sure to have a major impact on the industry. Regionally, passage of this initiative is certain to add urgency to adult-use cannabis regulation efforts in states like New York, Pennsylvania, Connecticut, Delaware, and Rhode Island.
South Dakota also set a record by becoming the first state to approve an adult use law before having an established medical cannabis system, and in a very conservative state no less! Voters supported both medical and cannabis initiatives despite strong opposition from the governor and other officials.
In Arizona, after voters narrowly defeated a legalization initiative in 2016, a significant swing brought a 10% increase in support resulting in passage. This long-overdue change is especially important because Arizona is the only state where simple possession is a felony and nearly 15,000 people are arrested every year.
So what does this mean for future reform efforts?
First and foremost, the passage of the adult use initiatives means nearly 34% of Americans now live in states with laws making cannabis legal and regulated for adults. These four states account for roughly 60,000 marijuana arrests every year, mostly for simple possession. Congressional representation of states where cannabis is legal for adults will increase by 29 representatives and eight senators. This doesn’t guarantee their support for cannabis legislation, but it certainly increases the chances.
Second, passage of cannabis policy reform initiatives in conservative states like Mississippi, Montana, and South Dakota should send a signal to Republican lawmakers in Congress that this is an issue that they can support, and one which they will face political consequences for impeding. The fact that all three of these states had multiple cannabis-related issues on the ballot and voters were not swayed or confused is a testament to the will for change in these areas and a growing understanding of the issue.
Long story short: more and more states will continue to enact sensible, modern cannabis policies in the coming years, and every state that does so will help add to the chorus of voices from the public and in Congress calling for an end to outdated federal prohibition policies.
Video: NCIA Today – #Election2020 Special Episode
Did you miss the special live stream of NCIA Today this Election Day morning on Facebook? Get caught up to speed with this recording of the episode while we prepare to see results the results coming in as Americans cast their votes all across the country.
Cannabis is on the ballot in states across the country and a new Congress will be elected today, possibly the one that will end federal cannabis prohibition. Join NCIA staffers for an exclusive power hour of cannabis conversations with elected officials, Hill staffers, campaign directors, and more.
Movement for Marijuana Marks Major Milestones in Montana
by Madeline Grant, NCIA’s Government Relations Manager
Over the last month, we’ve featured many blogs focused around key congressional races and cannabis policy reform ballot initiatives taking place in various states. As we are days away from the 2020 election, we can’t stress how important it is to get out and vote. We’ve heard from our peers, families, social media influencers, celebrities, news mediums, and much more about how each and every single vote counts – so do your civic duty and make sure that your voice is heard! If you need help determining if you’re registered, or need more information about anything election related, you can click here for some great resources.
This week, I want to dive a little deeper and discuss the two ballot initiatives that Montanans will vote on this November: Initiative 190 and Initiative 118. Initiative 190 would regulate cannabis for adults age 21 and older. Initiative 118 would allow legislation or a citizen initiative to set the legal age limit for possession at an age higher than the state definition of adulthood (18 years old).
First, let’s take a look at statutory Initiative 190, which legalizes, regulates, and taxes marijuana in Montana. I-190 legalizes the possession and use of limited amounts of marijuana for adults over the age of 21. The initiative also requires the Department of Revenue to license and regulate the cultivation, transportation, and sale of marijuana and marijuana-infused products and to inspect premises where marijuana is cultivated and sold. Additionally, it requires licensed laboratories to test marijuana-infused products for potency and contaminants. This initiative also establishes a 20 percent tax on non-medical marijuana, 10.5 percent of the tax revenue goes to the state general fund, with the rest dedicated to accounts for conservation programs, substance abuse treatment, veterans’ services, healthcare costs, and localities where marijuana is sold. The initiative would allow a person currently serving a sentence for an act permitted by the initiative to apply for resentencing or an expungement of the conviction. Lastly, I-190 would prohibit advertising of marijuana and related products.
Of course, when you look at any state that has legalized cannabis, there is the ability to generate millions of dollars in new tax revenue. According to the University of Montana Bureau of Business and Economic Research, Montana will generate $236 million in marijuana tax revenue by 2026. The general fund will net four million dollars. As ballot initiatives pass it is important to allocate the tax revenue to important causes that help communities and people and this is exactly what this initiative does as it would contribute to accounts for conservation, veterans’ services, substance abuse treatment, healthcare, and local governments. On top of that marijuana fees will fund program administration and enforcement.
The constitutional Initiative 118 allows the minimum legal age for marijuana to be set at 21 years old. Currently, under the Montana Constitution, a person 18 years of age or older is an adult, except that the legislature or the people by initiative may establish the legal age of purchasing, consuming, or possessing alcoholic beverages. This initiative amends the Montana Constitution to allow the legislature or the people by the initiative to establish the legal age for purchasing, consuming, or possessing marijuana.
When learning more about New Approach Montana, the main backer of Montana’s cannabis initiatives, they clearly stated why legalizing cannabis is a step in the right direction. Along with the significant tax revenue, Montana can improve access to medical marijuana for veterans and rural Montanans. They stated that despite Montana’s medical marijuana law, doctors at the VA are prohibited from recommending medical marijuana to their patients. By legalizing marijuana for all adults, veterans will be able to safely access it to treat chronic pain, PTSD, and other serious health conditions. Montana can stop wasting law enforcement time and resources on arresting people for personal marijuana possession. Treating marijuana as a criminal issue wastes law enforcement resources and needlessly cycles people through the criminal justice system. In states that have legalized marijuana for adults, police have more time to solve serious crimes.
As we gear up for election day it is important to note just how important these ballot initiatives are in our laboratories of democracies: the states. As more states reform their outdated cannabis laws, it puts more pressure on the federal government to fix our broken laws surrounding the war on drugs. With more states moving forward, it is evident that constituents have spoken in support of legalization; therefore, more representatives and senators on Capitol Hill must support their cannabis reform. If you would like more information on these ballot initiatives or would like to donate to the cause please do so here. Please stay tuned for more blogs coming your way post-election. If there is anything you have questions about feel free to contact our Government Relations team at madeline@thecannabisindustry.org.
The NCIA Committee Insights series showcases content produced in partnership with one of our 15 member-led committees.
For centuries we have collected, extracted, and studied countless plants for their medicinal, and sometimes poisonous effects. There are a handful of chilling tales of famous botanists and explorers falling victim to Angel’s Trumpet or even Poisonous Hemlock. NCIA’s Scientific Advisory Committee thought it fitting, for this special Halloween edition of their program to explore the spooky claim that cannabis has the potential to kill.
It’s autumn, and that means where I live, the temperatures have dropped from an insufferable 110 to a pleasant 85 degrees. In other parts of the country, leaves are turning color, the nights have turned chilly, and change is in the air. And all of this has me wondering, what happened to the summer?
This was the summer that wasn’t. With the pandemic, activities were curtailed, vacations were canceled, and nothing seemed normal. Like many companies, we adjusted our workflow to morph into a combination of virtual and in-person, and we implemented new sanitary and social distancing protocols. Cannabis was deemed essential, so with a few adjustments, we were able to carry on business as usual. And this got me thinking about how much we have to be able to adapt in order to survive and thrive.
One of the things I most enjoy in life is giving back to others. I’ve had a fair amount of success in my career and have learned a thing or two, and now I love passing along that knowledge and helping the younger generation get a foothold and better navigate their own pathway through the world of business.
And of all the things I’ve learned throughout my career, the one that has helped the most, especially through this complex and challenging time, is the ability to be flexible.
No, I’m not taking up yoga, although that’s probably a good idea. I am referring to being flexible in business.
When we are young and the whole world is in front of us, we think that all things are possible. The road ahead is uncluttered with roadblocks and there are no speed limits.
As we mature, we realize that life will throw a few obstacles at you, and a key component to success is how well you are able to overcome these challenges and keep moving forward.
The one thing that is constant in business is change, and without flexibility, failure is almost certain.
Think of the American companies that could not adapt to changing circumstances: Retailers like Kmart, Sears, and many others, have not been able to compete in the new world of online commerce and are all but gone. But Walmart continues to refine its online strategy and recently reported that e-commerce sales are up 74%. Target, another retailer that understands how to change with a changing world, reports online sales revenue will jump 24 percent this quarter. These two companies have embraced flexibility.
Borders Books is another giant that couldn’t adapt to a changing marketplace. While consumers were switching to e-books, Borders kept building new brick and mortar stores and focused on growing its CD and DVD department – clearly out of step with the changing times.
Not so long ago, Blockbuster was the place to go to rent movies. The company could have become a leader in digital entertainment but only made a last-minute and unsuccessful attempt to transition to the new platform. Today, they are gone.
The fact is, there are countless examples of companies that have shuttered because they could not adapt to changing times.
In the cannabis industry, change comes at a rapid pace. Laws and regulations are in almost constant flux, and if you are not prepared to quickly pivot and change directions, you will be left behind.
From overly aggressive expansion to stockpiling potentially unsellable inventory to not keeping enough capital on hand to handle those “rainy days,” there is a myriad of problems that can seemingly come out of the blue and dramatically impact a cannabis company’s ability to function.
I’ve seen this with my own eyes, far too many times.
In today’s world, and especially in the cannabis industry, it is vital to look ahead and maintain flexibility. Because before you know it, it will be spring and the world will be different… once again.
Pamela Donner is COO of High Point Jewelry, and is an experienced C-level corporate executive, with an impressive history of growing companies, navigating successful business turnarounds, launching new products, and implementing structural organization changes to reduce costs and maximize profits.
She is currently COO of multiple companies in the legal cannabis and CBD industries, including
Gel Cap Concepts, LLC – a manufacturer of cannabinoid-infused products; the Uncle Herbs, Naked Vape, and Desert Azee brands; and High Point Jewelry – the world’s first luxury cannabis-inspired jewelry company. She is also a partner in a CBD retail store and is COO of a popular dispensary.
Donner was named the 12th Most Powerful Woman in the Cannabis Industry by Cannabis Business Executive Magazine, and was listed as one of America’s Finest Entrepreneurs by Business Management News.
Pam resides in Scottsdale, Arizona with her husband, Glenn Murray.
Possession:Adults 21+, 1 ounce flower or 5 grams concentrate
Home cultivation:YES, adults 121+ may have up to 6 plants in an enclosed locked location out of public view.
Licenses:
Issue no more than one marijuana establishment license per 10 pharmacies;
Issue no more than two marijuana establishment licenses in counties that contain no registered nonprofit medical marijuana dispensaries;
Issue no more than one marijuana establishment license in counties with one nonprofit medical marijuana dispensaries; and
Issue 26 licenses, notwithstanding the other limits, to entities qualified under the Social Equity Ownership Program.
Social Equity: Department of Health Services would be required to establish a Social Equity Ownership Program to promote cannabis business ownership and employment for individuals from communities disproportionately impacted by the enforcement of previous marijuana laws.
Proposition 207 would establish a fund called the Justice Reinvestment Fund (JRF). Revenue in the JRF would be allocated as follows:
35 percent to local public health departments in proportion to the county’s population for the purpose of providing justice reinvestment programs or giving grants to nonprofits to provide justice reinvestment programs within the county’s area.
35 percent to DHS to provide grants to nonprofits to provide justice reinvestment programs in the state.
30 percent to DHS “for the purpose of addressing important public health issues” that affect Arizona.
Taxes & Revenue:
Transaction Privilege Tax (currently 5.6%)
Specific 16% excise tax (non-medical)
Revenue from the excise tax and license fees would be deposited into the Smart and Safe Arizona Fund. First, revenue would be used to implement and enforce marijuana regulations. The remaining revenue would be allocated as follows:
33.0 percent for community college districts;
31.4 percent for municipal police and fire departments, county sheriff departments, and fire districts;
25.4 percent for the state’s Highway User Revenue Fund;
10.0 percent for the new Justice Reinvestment Fund; and
Alternative 65A – Rep. John Thomas “Trey” Lamar and Rep. Brent Powell
Possession:
Initiative 65 – Qualifying patients may purchase/possess up to two and a half (2.5) ounces every 14 days
Alternative 65A – Undefined, no explicit protections
Home Cultivation: NO
Licensing:
Initiative 65 – TBD by Dept. of Health; no limits on number of treatment centers; may not be located within five hundred (500) feet of a pre-existing school, church, or licensed child care center
Alternative 65A – Undefined
Social Equity: None explicitly included in either initiative.
Taxes & Revenue:
Initiative 65 – Dept. of Health may authorize taxes up to the level of the state sales tax (currently 7%); revenue to be used for special operating fund and may not revert to state general fund
Ballots: Initiative 190 Marijuana Legalization Initiative (adult use), CI-118 Allow for a Legal Age for Marijuana Amendment
Summary:
Initiative 118 would allow legislation or a citizen initiative to set the legal age limit for possession at an age higher than the state definition of adulthood (18 years old).
Initiative 190 would regulate cannabis for adults age 21 and older.
Possession: Adults 21+, up to one ounce of flower or 8 grams of concentrate
Home Cultivation: YES, up to four (4) plants per adult, maximum eight (8) per household.
Licensing:
The Department of Revenue shall develop rules and regulations regarding licensing of providers, marijuana-infused products providers, and dispensaries for adult use. For the first 12 months, only existing medical cannabis licensees may apply. Provider licenses are established in tiers based on canopy size and also include micro-business licenses. Applicants must have resided in Montana for at least one year prior and may not have been convicted of a felony involving fraud, deceit, or embezzlement or for distribution of drugs to a minor within the past 5 years. Cannabis businesses may not be located within 500 feet of a school or place of worship unless permitted by the local jurisdiction.
Social Equity: Persons convicted of behavior permitted by Initiative 190 may apply for resentencing or expungement.
Taxes & Revenue:
Specific sales tax – 20%
Revenue will be used to fund operating costs of regulation as well as to support conservation efforts, substance abuse treatment and education, veterans programs, local governments, the general fund, and other programs. More information is available here.
#IndustryEssentials Webinar Recording – Catalyst Conversations: The Data You Need to Win
NCIA’s Catalyst Conversations Series is a brand new advanced webinar series curated to give enrollees in our Social Equity Scholarship program the opportunity to network and gain access to valuable knowledge that will help them excel in the cannabis industry.
In this edition of our Catalyst Conversations series originally aired on Tuesday, October 6 we featured some of the smartest minds in cannabis research and analytics, to share their insights on the US and global cannabis markets and how businesses can use data to their advantage.
Having access to accurate information is critical to success as an operator in the cannabis industry. Panelists will share data specific to states with social equity programs in existing and potential markets around the country.
This webinar will explore:
• What is the most important data that social equity owners and operators need to grow their business?
• How can cannabis business owners respond to the massive changes in consumer purchasing behavior due to COVID-19?
• What is the disparity of ownership and employment and arrests for cannabis between racial and ethnic groups?
This year, a national outcry against police violence and the impact of COVID-19 on Black and brown communities initiated a reckoning with the legacies of oppression and injustice in the U.S. Along with recognizing our institutionalized and internalized racism, we have started to come to terms with our economic inequality now that the income gap is worse than it has been in 50 years and three families alone control more wealth than 50% of Americans.
As with the rest of the country, the cannabis industry is lived differently based on the intersectionalities of race, class, gender, orientation, (dis)ability, and veteran status. For example, already wealthy, white, male individuals have amassed fortunes in cannabis with roughly 74% of U.S. cannabis businesses owned by men and 81% by whites, according to a 2017 Marijuana Business Daily survey.
After most states designated cannabis “essential” during COVID-19, private individuals, family funds, and pension funds plowed $2.6 billion into corporate cannabis, and multi-state operators posted record sales in the hundreds of millions. Earlier in September, the second cannabis exchange-traded fund (ETF) was announced which involves an investment portfolio of multi-state operators, REITs, and CBD companies. In contrast, Black and brown communities face mass incarceration for that same plant whereby African Americans are four times more likely nationally to be arrested for cannabis offenses than whites, while in states such as Kentucky and Montana, almost 10 times more likely, cited by a 2020 ACLU report.
These economic barriers to entry entrench the lack of representation in cannabis. For most entrepreneurs, the main obstacle to starting a cannabis business is the lack of access to traditional banking. It takes at least $300,000 to open a cannabis retail store, and up to millions of dollars for other cannabis enterprises, according to the 2019 Marijuana Business Factbook. Without traditional banking, most professionals finance their businesses through family wealth or personal contacts – 84% of U.S. cannabis companies are self-funded by founders, and 22% capture additional funding through a Family and Friends Round, cited by that same report. In this system, minority entrepreneurs are at a disadvantage. U.S. median household net worth ranges from $171,000 for white families to $17,600 for African Americans, $20,700 for Latinx, and $64,800 for “Other,” based on a 2016 Federal Reserve Board survey.
In addition to funding challenges, cannabis entrepreneurs must navigate onerous state and local regulations to obtain and maintain licensing. Some states have launched Social Equity Programs to help communities historically targeted by the criminalization of cannabis to now participate in the profits of legalization. However, even Illinois’s Social Equity Program, which is considered the gold standard, awarded only 21 out of its total 75 retail social equity licenses, leaving unclaimed 54 licenses that could have transformed the applicants’ economic circumstances. The 21 finalists were taken from a total pool of 1,667 applicants, which equates to only 1.3%. Low success rates stifle market entry and ensure that corporate, multi-state operators continue to saturate the cannabis space.
Beyond media proclamations, we must actualize an inclusive cannabis industry that reflects and celebrates the rich diversity of our community and provides equal opportunities to all professionals throughout the growth cycles of the market. We must operationalize sustainable businesses that produce unionized jobs and foster generational wealth. To do so, we must not only promote our own professional aspirations, but we must champion our friends’ and colleagues’ pathways into and up the cannabis industry.
While federal legalization remains the ultimate goal, local policies that would articulate a diverse, inclusive, sustainable cannabis industry must include explicitly legalized access to banking and finance, an overhaul of law enforcement and the criminal justice system, and social equity programs that encourage market activity. Until then, we must collectivize our professional resources and knowledge to build a true business community that empowers each of us to achieve our cannabis ambitions.
Rebecca Lee Katz is an attorney at an international law firm and President of Pakaloh LLC, the free business resource for an inclusive cannabis, CBD, and hemp industry. Pakaloh offers three types of membership which are all free, and members may select as many as they choose. Membership is available to 1) “Individuals”, including new and established entrepreneurs and professionals, 2) “Providers of Products”, or plant-touching businesses, and 3) “Providers of Services”, including ancillary services.
A WOC-owned company, Pakaloh provides its members with a comprehensive suite of services, starting with free information and discounts at financial institutions like banks, lenders, and payment processors that work in cannabis. Pakaloh also features free Business Tutorials that cover a range of cannabis topics from accounting to agriculture. These are informative, introductory online videos submitted by members that allow them to reach an audience of potential clients who may need to hire their services. Additionally, members may post and search for job opportunities.
Partner companies also offer discounts for members to use on individual and bulk orders. Members network on the site by accessing directories and sending messages directly to each other. Lastly, Pakaloh curates information on professional and activist organizations and events. Pakaloh is pledged to every community, and comes from pakalolo, an embrace of generations of the founder’s family in Hawai’i. Pakaloh holds true that no matter your roots, each of us aspires toward something greater than ourselves, be it our family, our nation, our cannabis movement.
Video: NCIA Today – Federal Policy Update, Andrew Yang, And More!
Host Bethany Moore, NCIA’s Deputy Director of Communications and host of NCIA’s weekly podcast ‘NCIA’s Cannabis Industry Voice‘ brings you an in-depth look at what is happening across the country in federal cannabis policy reform and with NCIA.
From the top, Bethany breaks the big news that former presidential candidate Andrew Yang will be keynoting the Cannabis Business Summit this year. She continues and discusses the newly-launched NCIA Facebook Live series (and podcast) Cannabis Diversity Report.
We check in with NCIA Deputy Director of Government Relations Michelle Rutter Friberg, to hear some of the recent highlights from the nation’s capital about cannabis policy reform, cannabis, COVID-19, and more. Our resident political expert breaks down the ways that NCIA is looking to help our members improve their engagement and reach in the legislative process.
Membership Manager and DEI Coordinator Tahir Johnson joins the show to discuss the recent move by NCIA to endorse the Cannaclusive Accountability list, asking all cannabis companies to adhere to promises made in the wake of racial injustices and actively strive to build a more equitable, inclusive industry.
A Third Round of SAFE Banking, HEROES 2.0 Unveiled
by Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations
Photo By CannabisCamera.com
It may seem like a while since you got an update on the SAFE Banking Act, but I have some exciting news to share with you!
Yesterday, House Democrats unveiled “HEROES 2.0” which is their latest COVID-19 relief package. If you’ll recall, back in May, the House also passed the initial HEROES Act, which included the text of H.R. 1595, the SAFE Banking Act.
Since HEROES passed the House in May, NCIA has been hard at work (from home!) talking to House and Senate leadership, as well as other key Senate offices about the need to pass this legislation and solve the cannabis banking conundrum. Unfortunately, those talks have been stalled for months as congressional leadership and White House officials struggle to make a deal.
Eager to return home in October with a victory to show, many moderates on both sides of the aisle have been stressing the importance of passing another relief package. As the language was just unveiled late yesterday evening, it’s still unclear how the Senate will react to the bill, and of course, the bill still has to clear the House of Representatives.
You might remember that just days before the first HEROES Act was passed in May, NCIA led ten cannabis advocacy and industry organizations in sending a letter to congressional leadership urging lawmakers to include SAFE in the next pandemic relief package. If the new HEROES 2.0 passes the House, it will mark the third time that the full body has approved the SAFE Banking language.
The language included in both packages is identical to the House-approved version of the bill and would make it easier for financial institutions to work with cannabis businesses that are in compliance with state law, as well as help address serious public health and safety concerns caused by operating in predominantly cash-only environments. The bill would also assist with the financial and practical hardships that are facing cannabis entrepreneurs of color as a result of a lack of access to capital from traditional lending institutions.
Make sure you stay engaged and continue to tell your lawmakers that you are a cannabis voter and that these issues are important to you! Contact your Senators today and ask that they support SAFE Banking as a necessary piece of legislation that can help the tens of thousands of cannabis workers stay healthy by allowing our industry access to legitimate banking and end our cash-only operations.
Want to make sure you hear the latest about what’s happening in cannabis policy? Follow NCIA on social media and be sure to share important information and resources as we release them with your networks, because we’re going to need all of us in this together!
The most important thing anyone can do to make sure SAFE Banking and other important reforms are realized in Congress is to ensure that their cannabis business is a member of NCIA. If you are not yet a member, please support our work by joining today. If you already are a member, thank you for making our advocacy work possible.
MORE Act House Vote Delayed, NCIA Submits Comments on FDA Guidance
by Morgan Fox, NCIA’s Director of Media Relations
In what House leaders have assured supporters is merely a temporary delay, lawmakers announced that the vote on the MORE Act which was originally scheduled for this week has been postponed until at least after the November election.
This legislation – which would remove cannabis from the Controlled Substances Act (CSA), expunge federal cannabis convictions, and establish programs to promote diversity in the cannabis industry and help communities that have been unfairly targeted by marijuana enforcement – was eagerly awaited as the first bill of its kind to get a floor vote in either chamber of Congress. No other de-scheduling bill, particularly one that contains robust restorative justice provisions, has ever gotten a vote since the original passage of the CSA in 1971, and advocates were confident that it would be approved in the House. In recent months, dozens of additional lawmakers have signed on to co-sponsor the bill, bringing the current total to 113.
Unfortunately, despite recent polling showing majority support for the MORE Act among Republican voters (and its job- and revenue-creating potential), some in the GOP attacked Democratic House leadership for moving forward with the bill before Congress had come to an agreement on a new pandemic relief package.
While this is certainly disappointing, House leadership has promised that the MORE Act will get a vote before the end of the year. That gives us at least another seven weeks to continue building support! In the meantime, attention is turning back to pandemic relief, where we are still pushing for the continued inclusion of SAFE Banking language in the final package if Congress can come to an agreement. There are also a number of cannabis-related provisions in this year’s appropriations bills, including removing barriers to research, protecting universities engaged in cannabis research, and preventing federal interference in state-legal medical and adult-use cannabis programs.
Please contact your members of Congress and urge them to support ALL these measures!
In other federal news…
With the help of our Policy Council, Hemp Committee, and Scientific Advisory Committee, NCIA submitted comments to the Food & Drug Administration this week providing recommendations on a number of issues related to how the agency will classify cannabis and cannabis-derived compounds in the future. You can read the full comments here. While the current comment period is now closed, the FDA has been expressing increased interest in input from a variety of stakeholders, suggesting that they are preparing for a change in policy in the relatively near future. It is very likely that there will be more opportunities to weigh in on their policies that could affect the cannabis industry for years to come.
The DEA and USDA both have open comment periods right now, so be on the lookout for more information about how you can help us influence cannabis and hemp policy at those agencies in the coming weeks!
Member Blog: Pivoting Your Cannabis Business During COVID-19
By Lindsey Griffith, Creative Content Specialist at ThrivePOP
Life has changed, and businesses are in panic mode. Consumer income suddenly becomes uncertain, and we begin to face our own economic vulnerability. Luckily for the cannabis industry, they were deemed as an “essential” business during the COVID-19 pandemic. And while this meant they were still excluded from federal funding, they were allowed to operate and service their consumers based upon differing state rules and regulations.
While some cannabis companies’ first instinct may be to cut costs to marketing, there are several reasons why that should not be the case. Not only does marketing need to continue for your cannabis business to stay thriving, but it also needs to be amped up. Here we’ll discuss some reasons why you should keep marketing efforts rolling and just how you can pivot your tactics during a pandemic.
Make The Most Of Your Time Online
On a normal day, the majority of the population is online. Now that many companies have transitioned their employees to work from home, or shut down altogether, even more people are spending time online. More people are on social media trying to interact with their clients and audience, and those that may have downtime are spending it on the web. COVID-19 brought sudden closing to in-person cannabis services across the globe and many businesses found themselves scrambling to get online. Social distancing practices suddenly transitioned daily activities to a completely digital life, so increasing your digital marketing efforts is a good way to continue to bring revenue to your business.
Now that your cannabis business may be limited to curbside, it is necessary to make your new purchasing process transparent online. Create a pickup process graphic for your website or pin directions to the top of your Facebook page. The easier you make it for your consumers to purchase your cannabinoids products during COVID-19, the better. Being online and consistently updating your content across the board is essential to keeping your cannabis business afloat.
Focus On eCommerce
During times like these, people are stuck inside – so naturally, everyone wants to shop online. By transitioning your cannabis sales to an online market, you will be able to maintain stability in uncertain times.eCommerce is a highly beneficial and successful way to keep your business active and making money during an economic crisis! It’s called retail therapy for a reason, right?
Luckily there are many resources to list your products online within the cannabis industry that expose you to a much larger audience than your website alone. Leaflymaximizes your cannabis or CBD business presence through targeted advertising on its website. It’s also equipped with an easy to use online ordering system that allows customers to easily order in advance for pickup at your location. Another resource often used as an eCommerce platform within the industry is Weedmaps. Equipped with a mobile application, Weedmapsalso makes it easy for consumers to easily search for cannabis brands and products near them. These are just a few of the resources available for you to legally list your products online.
While these external resources are extremely beneficial, all of these should work in conjunction with your own cannabis domain. Having your own domain and website for your business is essential to succeeding and staying on top of Google search results during COVID-19. Using search engine optimization and regularly adding new content to your website are just some of the ways to continually rank for related cannabis search terms. Don’t expect immediate results, however, as it often takes several weeks for Google to analyze and formally rank your website changes.
Build Your Email Marketing List
Now more than ever is a great time to build your client database. With the influx of people online and more time on their hands, it means that your offers can reach more people with the right marketing strategy. Setting up a marketing campaign with insider exclusives is an amazing way to keep people interested in your business and keep you at the forefront of their minds once things return to normal.
This can be done in the form of an email newsletter signup, social media contest, or even lead generation quizzes. Just make sure you’re following current web and social media contest rules and regulations. When creating these campaigns, consider what is valuable to your consumer, as this won’t be the same across all cannabis businesses. Do your consumers want to be educated? Are they interested in the latest products or strains in store? Does the majority of your business come from recreation or medicinal sales? Use what you know about your target audience to carefully curate exclusive offers that are unique to your brand.
Utilize All Of Social Media’s Tools
Adults are using social media up to 51% more than before the pandemic. Increasing your cannabis brand’s social media presence is key to staying in front of your audience during COVID-19. While you are currently not allowed to do any paid social media advertising (social media companies abide by federal law) there are many free tools available to grow your page organically. Making use of Instagram stories polls, questions, and countdowns are easy ways to give your audience a chance for them to interact with your page, therefore feeding into the algorithm.
Confused as to how that works? It’s actually pretty simple. Every time someone interacts with your Instagram story it signals to the algorithm that the user is engaged with your content. The more they interact, the more Instagram deems your content important to that user. Therefore, bumping you right to the top of their news feed!
Using micro-influencers on social media is also a very cost-effective way to market your cannabis business on social media. Their small circle of dedicated followers is more likely to convert into a customer for your business than a larger influencer account. Just make sure the partnership aligns and makes sense for both parties involved.
Reassessing Your Long-Term Strategy
How often do businesses get to press the reset button? If there is one silver lining during COVID-19, it’s the ability for businesses to adjust their marketing strategies. Now is the perfect time to develop a cannabis marketing plan that implements the standards of a “new” normal. When you do this you are able to reconsider your 4 P’s of marketing:
Product: Does my product serve my audience well during COVID-19? Place: Is my product or service easily accessible to my audience during COVID-19? Price: Can consumers afford my product or service during this economic crisis? Promotion: Will consumers respond to marketing tactics as they had before COVID-19?
Marketing can’t just be turned on and suddenly leads and conversions pour in. It’s a long road with twists and turns that lead you to your destination. Dropping marketing efforts turns that car around immediately, reversing all efforts to obtain leads and increase sales. This may be a difficult and confusing time in the cannabis industry, but remaining strong in your marketing strategy will keep your business stable and active during and after a crisis.
Moving forward, consider how your marketing campaigns can now enter your consumer’s psyche. Keep your campaigns focused on your cannabis brand and don’t look to gouge worried consumers. Let’s be ethical about all this, while also remembering how marketing and staying in front of your audience is important, pandemic or not. Eventually, things will return to normal, so being smart and socially conscious and putting your best marketing foot forward will carry your business through!
Lindsey Griffith is the Creative Content Specialist at ThrivePOP, a West Michigan based Digital Marketing Agency. As a copywriter, Lindsey has experience in creating and implementing content across several digital platforms including podcasts, webinars, blogs, and social media profiles. During her cannabis career, she has worked with several cannabis manufacturers on search engine optimization through blogging to drive traffic to their website and assist in organic social strategies to gain new followers. Lindsey received her Bachelor’s Degree in Marketing from Grand Valley State University and her work has been published across several cannabis industry platforms.
MORE Act Headed For Vote, SAFE Banking Still In Play
by Morgan Fox, NCIA’s Director of Media Relations
We asked, you answered, and your efforts are seeing results!
Over the past months, our Government Relations team in Washington, D.C. has been hard at work gathering support in Congress for the Marijuana Opportunity, Reinvestment, and Expungement (MORE) Act, and many of our members responded to the call to contact their lawmakers to urge them to support the legislation and bring it to a floor vote in the House. Well, our mutual work is paying off!
Last week, House Majority Whip James Clyburn (D-SC) announced that the MORE Act would be called for the vote! This was confirmed Monday as taking place during the week of September 21.
This legislation would remove cannabis from the Controlled Substances Act and do away with the continuing conflict between states with modern cannabis laws and the federal government. It would also expunge federal cannabis convictions, remove barriers to research, eliminate the current problems with the 280E tax code and lack of access to banking, promote more diverse participation in the cannabis industry, and establish funds to help undo the disparate harms caused by prohibition.
Make no mistake: this vote will be historic. This will be the first time that a bill to end cannabis prohibition has come up for a full vote in either chamber of Congress, and the results of the vote could determine the path of cannabis policy reform efforts for years to come.
This means we have just three weeks to drum up as much support as possible and show our elected officials where the vast majority of Americans stand on cannabis.
If your representatives are not among the 87 current cosponsors of the MORE Act, please contact them and urge them to join in showing their support for this momentous and necessary bill.
Meanwhile, our efforts to maintain momentum for cannabis banking reform have continued throughout the negotiations of the next pandemic relief bill. Despite a somewhat contentious public debate over the size and scope of the stimulus funds in general, hope is still alive for the SAFE Banking Act provision to be included in the final legislation if Congress can come to some agreements on the numerous other issues at stake.
What is not up for debate is that SAFE Banking is an absolutely necessary part of COVID-19 relief. This measure will improve public health and safety by enabling more social distancing and decreasing cannabis businesses’ reliance on cash transactions which can spread contagions and make them a target for crime. Most importantly, it will help thousands of small businesses – with hundreds of thousands of employees across the country – survive these difficult times while providing uninterrupted healthcare services. It doesn’t get more COVID-relevant than that.
While it is still uncertain when or how the House and Senate will arrive at a compromise for pandemic relief, we don’t have much time before the elections divert most of their attention.
Keep an eye out for updates on ways you can help get SAFE Banking passed this year.
We couldn’t do this work without the support and assistance of our valued members. If you are not yet a member, please support our work byjoining today. If you already are a member, thank you for making our advocacy work possible.
Video: NCIA Today – August Recap, Diversity, Equity, & Inclusion Update, Election Predictions, and more!
Host Bethany Moore, NCIA’s Communications Manager and host of NCIA’s weekly Podcast ‘NCIA’s Cannabis Industry Voice‘ brings you an in-depth look at what is happening across the country in federal cannabis policy reform and with NCIA.
From the top, Bethany discusses the new NCIA #IndustryEssentials webinar series. Webinars that arenʻt just about getting some big-name talking heads on a Zoom call, but about getting the correct people with the most up-to-date information to help our members stay ahead of the curve. This new series provides insights you canʻt find anywhere else, from experts who will surprise and delight you with their in-depth knowledge on relevant industry topics.
We check in with NCIA Diversity, Equity, Inclusion Manager Tahir Johnson to hear some of the recent highlights from his new show “The Cannabis Diversity Report.” Launched alongside the NCIA Social Equity Scholarship program, this weekly conversation takes an in-depth look at navigating, regulating, and growing the cannabis industry as a minority operator.
Director of Public Policy Andrew Kline joins Bethany on NCIA Today to discuss the nomination of Kamala Harris as the Democrats’ vice-presidential choice. A former Biden staffer and advisor, Kline discusses the minute differences he sees in the nominees’ cannabis policy and his expectation that Senator Harris can help Vice President Biden’s views evolve.
2020 isn’t completely canceled, as we begin registration for this November’s #CannaBizSummit CYBER, register today!
#IndustryEssentials Webinar Recording – Policy Council Conversations: Interstate Commerce – Environmental, Economic, and Social Equity Implications
In this edition of our Policy Council Conversations series originally aired on Wednesday, August 12, 2020 panelists discuss the findings of NCIA’s white paper on interstate commerce.
What happens when a state like New York decides to legalize? New York has traditionally imported its cannabis from the west coast through the illicit market, and with a population of nearly 20 million people, it’s unclear how the state could grow all the cannabis it would need to supply a legal market without massive infrastructure and environmental costs.
NCIA’s Policy Council and State Regulations Committee have just wrapped up a blog series and white paper around interstate commerce. This webinar will discuss what the participants in that effort learned from their work. We’ll examine the movement to begin legal cannabis commerce between states, starting with the 2019 bill passed in Oregon followed shortly after by the The State Cannabis Commerce Act of 2019 introduced in Congress. We’ll also discuss how allowing interstate commerce will be better for the environment and patients/consumers, will undercut the illicit market, and will boost an industry that struggles to survive within the confines of state borders.
Learning objectives: • Why interstate commerce makes sense environmentally and economically • How patients/consumers would benefit from interstate commerce • Ways that interstate commerce could potentially be used in a social equity model • How to successfully lobby for an interstate commerce bill in your state
Panelists:
Rachel Kurtz-McAlaine
Deputy Director of Public Policy
National Cannabis Industry Association
Adam Smith
Founder and Director
Craft Cannabis Alliance
Gabe Cross
Odyssey Distribution
Shanita Penny
Odyssey Distribution
Video: NCIA Today – July Retrospective, D.C. Update, Cannabis Caucus Cyber Series Returns, and more!
In NCIA’s monthly video series, NCIA Today, host Bethany Moore shares a retrospective on the month of July, plus what to expect from NCIA’s digital events this fall. We also check in with NCIA’s Director of Government Relations, Michael Correia, to hear more about NCIA’s efforts to advance the cannabis industry’s legislative goals in D.C. during the COVID-19 pandemic.
NCIA members can join us at our second Cannabis Caucus CYBER series in the month of September.
Dates for NCIA’s rescheduled 2020 conference schedule has been announced… for 2021.
Mark your calendar for the NEW dates for NCIA’s Cannabis Business Summit and Expo, Midwest Cannabis Business Conference, and 10th Annual Cannabis Industry Lobby Days.
Plus, we announce a brand new virtual educational event taking place October 21-22, 2020!
#IndustryEssentials Webinar Recording – Service Solutions: Get Connected – Exploring the newest NCIA Member Benefit
In this edition of our Service Solutions series originally aired on Wednesday, August 5, 2020 NCIA staff gave an overview of our online community, NCIA Connect.
In Summer 2020 NCIA rolled out an exciting new member benefit: NCIA Connect! NCIA Connect is an online community for NCIA members to engage in thoughtful discussion and learn from other cannabis industry professionals while enjoying exclusive access to important industry resources and members-only content. This webinar includes a guided walk through some of the key features of the platform from members of NCIA’s Business Development, Events, and Marketing teams. Learn more about this new member benefit and find out how it can positively impact your business!
House Approves Appropriations Amendment to Protect State-Legal Cannabis Markets
Provision would prevent federal interference in all legal cannabis programs, including adult use
After approving legislation to protect state cannabis programs in a voice vote on Thursday afternoon, the House of Representatives reiterated its support with a roll call vote of 254-163 hours later. The bipartisan amendment to the Commerce, Justice, and Science appropriations bill was introduced by Reps. Earl Blumenauer (D-OR), Barbara Lee (D-CA), Tom McClintock (R-CA), and Del. Eleanor Holmes Norton (D-DC).
The provision would prevent the federal government from using any funds to interfere with state medical or adult-use programs or target individuals and businesses that are in compliance with state cannabis laws. If passed, this spending restriction would remain in effect for the next fiscal year.
“Today’s House vote aligns with the overwhelming majority of Americans who oppose federal interference with the successful cannabis programs operating throughout the country,” said Aaron Smith, CEO of the National Cannabis Industry Association. “Now, it’s time for the Senate to do the right thing and ensure this sensible provision makes it into the final budget legislation so that states can continue to forge their own path on marijuana policy without federal intrusion.”
A recent poll by SurveyUSA showed that 76% of Americans think states should be able to enact their own marijuana laws without interference from the federal government, including more than two-thirds of Republicans. The annual Gallup poll on the subject from last year showed that nearly two-thirds of respondents support making cannabis legal for adults.
“Passage of this amendment would give state-legal and essential cannabis businesses some temporary peace of mind while Congress works to permanently end federal prohibition and repair the damage it has done to marginalized communities,” continued Smith. “It is clear that there is strong bipartisan support for cannabis policy reform and we will continue working with lawmakers to promote further legislation in this session.”
Last year, this amendment was passed by the House but did not end up in the final budget bill. Since 2014, Congress has approved appropriations language that prevents interference in only state medical cannabis programs, and has included that language in the original budget language for the last two years.
SAFE Banking Not Included In Newest COVID-19 Relief Package
by Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations
Today, Senate Majority Leader Mitch McConnell (R-KY) and the GOP caucus unveiled the text of their long-awaited coronavirus relief package. The initial draft text of the bill did not include any cannabis provisions, namely, the SAFE Banking Act.
If you’ll recall, back in May, the House of Representatives passed the HEROES Act, which included the text of H.R. 2215, the SAFE Banking Act. The language included in the House-passed HEROES Act would make it easier for financial institutions to work with cannabis businesses that are in compliance with state law, as well as help address serious public health and safety concerns caused by operating in predominantly cash-only environments. After the House passed the bill, it remained in the Senate while the GOP-controlled chamber came up with their own version.
But, a lot can change in a few months. Since HEROES passed the House in May, NCIA has been hard at work (from home!) talking to House and Senate leadership, as well as other key Senate offices. The good news is that those conversations have been overwhelmingly positive and we feel incredibly hopeful that the discussion about SAFE Banking will continue to be a part of the conversation as negotiations progress.
Make sure you stay engaged and continue to tell your lawmakers that you are a cannabis voter and that these issues are important to you! Contact your Senators today and ask that they support SAFE Banking as a necessary piece of legislation that can help the tens of thousands of cannabis workers stay healthy by allowing our industry access to legitimate banking and end our cash-only operations.
Want to make sure you hear the latest about what’s happening in cannabis policy? Follow NCIA on social media and be sure to share important information and resources as we release them with your networks, because we’re going to need all of us in this together!
The most important thing anyone can do to make sure SAFE Banking and other important reforms are realized in Congress is to ensure that their cannabis business is a member of NCIA. If you are not yet a member, please support our work by joining today. If you already are a member, thank you for making our advocacy work possible.
#IndustryEssentials Webinar Recording – NCIA Committee Insights: What are Standards Development Organizations and How Will They Shape Federal and Global Cannabis Policy?
In this edition of our NCIA Committee Insights series originally aired on Wednesday, July 22, 2020 we were joined by members of NCIA’s Scientific Advisory Committee as well as representatives from ASTM International, AOAC, and USP for a discussion on standard development organizations as they relate to cannabis policy.
Up until 1942, the United States Pharmacopeia (USP) published a monograph (a standard specification) for cannabis which was used by physicians across America. The USP is a nonprofit organization that develops compendial quality standards for medicines, food ingredients, and dietary supplements and is recognized by the under law as an official source for standards of drugs. The USP formed a Cannabis Expert Panel in 2016 and they recently published recommendations for quality attributes for cannabis flower. ASTM International and AOAC International have also formed volunteer committees to develop consensus quality standards for cannabis for several years. Certain USP standards are recognized under the Federal Food Drug & Cosmetic Act. Additionally, in accordance with OMB Circular A-119, under certain circumstances the federal government must use voluntary consensus standards, such as those developed by AOAC and ASTM, in lieu of government-unique standards. Therefore, depending on the legal landscape for cannabis, regulators may rely on these standards-development organizations for quality standards for the cannabis industry. In this panel, leaders from relevant standards-development organizations will give updates on the work being done in their cannabis working groups. They will also explain how their work compliments and how you can get involved.
Learning Objectives:
• Understand what standards-development organizations are, and who are the key players in creating quality standards for cannabis. • Learn about the cannabis standards that have been published or are in production. • Learn how to contribute to a standard organization, and what is involved. • Understand the work being done by NCIA, USP, ASTM, AOAC, and other similar groups.
Panelists:
Alena Rodriguez
Managing Director
RM3 Labs
Robert Morgan
Director of Technical Committee Operations
ASTM International
Scott Coates
Senior Director of AOAC Research Institute
Project Lead for AOAC’s CASP Program
Dr. Nandu (Nandakumara) Sarma
Director of Dietary Supplements and Herbal Medicines
USP
A Different Kind Of Season: Gearing Up For Appropriations
by Morgan Fox, NCIA’s Director of Media Relations
It’s that time again on Capitol Hill: appropriations season, when Congress determines how to spend – or not spend – your tax dollars for the next year. As you can imagine, this year will be unlike any in recent memory as a cash-strapped nation struggles with how to weather the economic storm caused by the pandemic while finding the funds to support important government functions and programs. Appropriations are also a time when our champions in the legislature are once again introducing sensible cannabis policy reforms through an avenue that historically has been effective. Many of these reforms would actually save taxpayers money!
What’s in:
For the second year in a row, language that prevents the Department of Justice from using resources to target state-legal medical cannabis programs was included in the original language of the commerce, justice and science funding bill. If approved or continued, this would be the sixth year that Congress has told federal law enforcement to leave medical cannabis patients and providers alone.
Language that would prevent the Department of Treasury from using resources to penalize banks and other financial institutions for working with legal cannabis businesses was included in the financial services and general government funding bill. While not as comprehensive as the SAFE Banking Act, which was approved by the House last year and included in its most recent coronavirus relief bill, this provision would give financial services providers more assurances needed to encourage working with the cannabis industry and would help improve public health and safety.
A measure that would protect public colleges and universities from being denied federal funds due to conducting research on cannabis was included in the bill funding agencies related to education, labor, health, and human services. Many institutions have cited the potential loss of funding as a major discouragement to research. This also makes it easier for universities to study cannabis products available in regulated state markets. An additional provision to this bill also prevents federally funded schools from engaging in any advocacy in support of making any Schedule I substances legal.
Additional funding would be made available through the agriculture and FDA appropriations legislation for research, regulation, and consumer protection related to hemp, CBD, and other cannabis components.
Language that asks the Office of Personnel Management to reconsider allowing federal employees to legally consume cannabis in accordance with applicable state laws without fear of retribution was added to the financial services and general government funding bill. While this is non-binding, it would hopefully encourage the federal government to review its employment practices and not punish law-abiding employees who choose to use cannabis outside of work.
What’s not:
A provision that has prevented the District of Columbia from regulating cannabis after voters there approved a ballot initiative making adult use legal in 2014 was left out of the new spending package. So long as it is not added again in either the House or Senate, the nation’s capital will finally be able to fully carry out the intent of the voters more than half a decade after residents decided this issue. Currently, adult possession and limited home cultivation are permitted in the District, but non-medical sales are not.
What could be added:
While the spending bill that funds the Department of Veterans Affairs did not originally contain any cannabis-related provisions, supporters are leaving open the possibility that language which would allow doctors in the VA system to recommend medical cannabis to their patients in accordance with state laws to be included before the process is complete.
Reps. Earl Blumenauer (D-OR) and Tom McClintock (R-CA), joined by Delegate Eleanor Holmes Norton (D-DC), are considering the introduction of a rider which would prevent the Department of Justice from interfering in any state cannabis program, extending the previously-approved protections for medical cannabis programs to regulated adult-use systems that exist in 10 states and counting. This legislation was approved in last year’s House spending bills but was not included in the final legislation.
It is difficult to tell what will happen with the various appropriations bills this session. There is still time for members of the House to amend funding legislation. While the House is moving forward with these bills, the Senate has yet to introduce any of their own. However, the upper chamber is in the process of considering a new coronavirus relief package. NCIA has been working with that chamber to have cannabis banking reform language included in that bill as it was in the last relief bill approved by the House, but it is by no means certain at this point. It is also possible that Congress won’t reach an agreement on the new spending bills and will simply decide to continue with the prior year’s budget outlays, which would at least continue medical cannabis protections for another year.
Stay tuned for more updates and be sure to join us next Wednesday, July 29, for an exclusive members-only fireside chat with NCIA’s dedicated government relations team!
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Following the presidential election, we’ve entered the lame-duck session. This occurs after an election, but before new members are sworn in, and allows for time on the legislative calendar for Congress to pass additional legislation. Before Congress heads home for the holidays, a new administration takes office, and the 117th Congress returns, let’s take a look at what to keep an eye on during the lame-duck session. 
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