When the COVID-19 pandemic started to ramp up in the U.S. last March and stay at home orders were being put in place, medical cannabis patients took notice.
I saw it firsthand with my wife who stocked up for three months, not knowing what she was in for and wanted to make sure she had her treatments, just in case dispensaries were closed down. She was not alone, it has been well documented that this stocking upsurge took place and sales increased dramatically over a few months.
But many of these businesses did not close during the shutdown and it was a big milestone that several state governments declared medical dispensaries essential. This was a big statement to make for an emerging new industry that has been saddled with controversy over the years.
Prior to COVID-19, the industry was already going through a reset in late 2019. The large players overextended themselves globally with huge capital investments in facilities and then oversupply hit the market, prices started to decline and the anticipated demand to pull CBD products did not materialize. Add COVID-19, and you have the perfect storm to amplify the reset button.
Consolidation is in the works — restructuring of management teams, companies closing doors because they were not strong enough to start with other factors too. This pushed these businesses over the edge.
As we have been slowly reopening the country, the cannabis industry has the potential to emerge stronger than ever. There might be fewer players, but the ones that have survived will be set for the next push of maturity of the marketplace.
States that do not currently have adult-use programs will most likely look at cannabis as a way to drive new tax revenue into the state to help offset the heavy losses during these several months of lockdown.
When these states do pull the trigger on adult-use, regulation and compliance will be a key issue. The current companies who have been using all the latest tracking platforms, ERP systems, and implementing cGMP standards will be in very good shape to meet the requirements and deliver authentic products that are high quality and safe to consume.
Consumers will want to know the origin of the materials being used to manufacture these products and demand transparency from the brands. New innovative technologies using unique molecular-based tags to apply to the flower, oils, isolates and edible products will help take the industry to a new level of scientific proof of authenticity offering forensic transparency across global supply chains.
Even in the face of a pandemic, cannabis is here to stay! Over 60% of the population is in favor of it for both medical and adult use. The science that has taken place over the last 20 years globally has articulated how the human body can take advantage of the cannabis plant in many ways. And for folks who want to use it as a recreational alternative, they should have the right to do so, of course with responsibility.
There is clear global demand, it still needs to be sorted out and that will happen over the course of the next couple of years as this emerging industry matures into a profitable market segment in the world’s economy.
It is an exciting time for cannabis and as we begin to focus on reopening business across the nation, we are eager to take advantage and to be a part of the opportunities that are ahead.
John Shearman, Vice President of Marketing and Cannabis Business Lead at Applied DNA Sciences, has over 30 years of deep enterprise and advertising agency experience across all marketing, sales and IT disciplines. John’s experience allows him to advise on structuring sound strategies that address business goals and objectives. His extensive technology background stems from working with several leading technology companies throughout his career. John spearheads Applied DNA Sciences Cannabis vertical leading the vision, strategy, and product development for this emerging market. John also oversees the marketing for the entire company driving the marketing strategy for its other core verticals.
Video: NCIA Today – New Equity Scholarship Program, New NCIA Connect Member Benefit, 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.
This episode is sponsored by NCIA Connect, the newest member benefit from NCIA.
From the top, Bethany discusses the #IndustryEssentials webinar series, highlighting the topics covered in the echelon of digital webinar content the NCIA team has been bringing you the last few months. Topics have included protecting your brand and retail success strategies to a Policy Council conversation titled “Just Say NO: Keep The DEA Out of Cannabis Research.” We’ve been joined by Representatives Lou Correa (D-CA) and Earl Blumenauer (D-OR). Missed a live webinar? NCIA Members can access them exclusively on Connect now.
In June, our exclusive education and policy event series the cannabis caucus series to a cyber audience. The fun, online setting allowed our members across the country to come together over two weeks and check in on federal and local updates on policy and regulation updates that could affect them. NCIA launched the latest phase of our Diversity, Equity, Inclusion plan in June. This included making Tahir Johnson our Business Development and DEI Manager, and spearheading the DEI initiatives and committee. The first action taken has been creating the Social Equity Scholarship Program, which will award complimentary annual memberships to all social equity licensees and applicants.
NCIA Director of Marketing, Kaliko Castille, checks in with Bethany to discuss NCIA Connect, our newest membership benefit.
Finally, we end with a check-in with our CEO Aaron Smith.
The “Helpers” In The Cannabis Industry – Responding to COVID-19
As the entire world continues to navigate through the devastating COVID-19 pandemic, it can sometimes be difficult to see the silver lining. A beloved public television figure known as Mister Rogers famously told the story of how his mother urged him while watching “scary things in the news,” to “…look for the helpers. You will always find people who are helping.”
This sentiment rings true for the cannabis industry here in the United States, as cannabis has been declared an “essential business” even during these initial, and most severe, phases of the shutdown. And in recent days and weeks, we are seeing how the cannabis industry itself has stepped up to become “helpers” in various ways, ranging from fundraising efforts to manufacturing hand sanitizer for the community.
As we get through these difficult times together, one day at a time, let’s take a moment to celebrate the efforts of these NCIA members helping to make our world a better place.
Donations Of Supplies And Dollars
Seattle-area company Canna Brand Solutions, a custom packaging supplier and CCEL Vape hardware distributor, has donated 10,000 KN95 masks to local hospitals Providence Everett and Virginia Mason.
They’ve been fortunate to continue serving their adult-use and medical cannabis manufacturing partners who are deemed essential businesses. Through their strong relationships with manufacturers in China, they were able to procure the masks.
Canna Brand Solutions’ CEO Daniel Allen shared, “During this challenging time, we can think of no better way to serve our community than support the people working to keep us safe and healthy.”
Good Chemistry, a Colorado-based dispensary, donated $50,000 and masks. Read more in The Westword.
Kind Colorado is participating in the CDC (Cannabis Doing Good) Gives fundraising campaign.
Cannabis Doing Good (CDG) found nonprofit partners and fellow cannabis collaborators doing incredible work to support the hungry, the unhoused, medical providers caring for our sick, and our frontline workers at dispensaries and restaurants. Together – they created a platform for the cannabis community to contribute.
Many nonprofits are wary to accept cannabis dollars for a host of reasons. However, through relationship development, trust, and transparency, CDG has found 3 community treasures that are willing to work with them. Addressing hunger, Metro Caring, addressing the unhoused, Urban Peak and – one from our very own industry, Friends In Weed, supporting budtenders and the restaurant industry.
CDG Gives: Donations as small as $10 and as large as $5000 are accepted. If this is successful – CDG plans to launch a national campaign so that our sector can contribute on a larger scale. Any amount of participation is welcome.
Technology Perks
Leafbuyer, the cannabis technology company, is giving free texting and loyalty to help non-cannabis businesses get back on their feet!
Because marijuana dispensaries have been considered “essential businesses,” some cannabis businesses have not been hit as hard as other small businesses that have had to shut their doors or scale back. Leafbuyer Technologies, Inc., which serves hundreds of dispensaries, is offering up to $750,000 in free texting and loyalty to 500 small businesses in five cities hit hardest by the coronavirus. Learn more.
Switching Gears: Hand Sanitizer
The Galley is Producing Hand Sanitizer
In early April, The Galley of Santa Rosa, California, joined a wave of cannabis companies’ efforts to support the urgent need for supplies brought on by the COVID-19 pandemic. Channeling resources at their state-of-the-art manufacturing and production facility, a first run of “Stop & Sanitize” will include 25,000 units for distribution to hospitals, retail shops, grocery, and drug stores. The Galley has been built to FDA and CDPH standards and is capable of meeting high demands in multiple cannabis product categories. Using operational expertise and a cutting edge facility, the company will provide bottles of hand sanitizer to retailers in need.
Annie Holman, CMO of The Galley, shares, “It’s our civic duty to do what we can to save lives. Our “Stop & Sanitize” hand sanitizer is made with great care in a sterilized setting and we want to contribute in some way to help people & our community in this crisis.”
Director of Operations Cheriene Griffith comments on manufacturing practices stating, “We have followed the strict FDA temporary guidelines for this purpose and our plant to ensure the product is safe.”
CGA Packaging of Santa Rosa will provide donations of labels and packaging for the “Stop & Sanitize” product. Wherefour, a local Enterprise Resource Planning (ERP) technology company, will donate services to support expedited production.
Anresco Labs began manufacturing ethanol-based hand cleansing solutions.
The company’s intention is to donate as much of this material as possible to those most in need. For each bottle purchased, an equivalent bottle will be donated to a non-profit organization.
At a time when we need it most, it’s uplifting and encouraging in these dark times to see the cannabis industry stepping up and giving back to a community in need, and these values are part of what our industry represents: Community. Health. Well-being. Innovation. And generosity.
As we come together to solve new problems and face new challenges, we’re also grateful for the various educational blogs and other resources with advice and expertise regarding COVID-19 that NCIA members have contributed during this time.
If you are an NCIA member that has given back to the community in response to the COVID-19 crisis, we want to hear about it! Email me your story at Bethany@TheCannabisIndustry.Org.
Member Blog: How To Expand Or Renovate Your Cannabis Facility While Observing Social Distancing
Keeping employees safe is on everyone’s mind, as we continue to operate under social distancing protocols. Even as our communities open, we still need to be mindful of disease transmission when constructing any facility — especially cannabis industry real estate. Cannabis is an industry under endless scrutiny; the COVID-19 pandemic is an opportunity to show the world our true colors, as respectful and responsible business operators. The most visible way this responsibility shows up is in dispensaries, where across the U.S., cannabis companies have shown true innovation in shifting how they distribute product to customers — and continue to improve their facilities — while complying with social distancing requirements.
We can lead by example for other industries by continuing to build on the momentum we have, without sacrificing worker safety. Most cannabis companies are in ‘grow or die’ mode, understanding that opening new facilities and expanding operations is essential to survival in this rapidly evolving business.
Let me be clear: you don’t need to interrupt your forward progress, even if it may take slightly longer to deliver. From new licensees that have committed funds to build their first dispensary, to established cannabis companies with capital to expand operations, the good news is that construction activity is still going strong. We are currently renovating cannabis facilities in more than nine states, continuing to achieve operational milestones despite the necessary restrictions of social distancing measures.
Here are some ways cannabis companies can keep everyone working and shopping in your facility safe, while also making sure your building or renovation projects make progress:
1.Practice social distancing best practices on the job site.
Regardless of state-by-state differences in social distancing regulations, it simply makes sense to be ‘better safe than sorry’ right now. If you are renovating, construction workers will in most cases be working within your facility; this location means that they will have to comply with all the rules for your facility in general as well as with construction regulations and best practices. Your contractors should be clear about the social distancing practices they have put in place; you can cross-check to make sure that they are also in compliance with other guidelines and regulations you are required to follow within your facility.
2.Plan for scheduling that allows for less workers on-site at one time.
Generally speaking, placing workers six feet apart means you’ll need to have less workers per shift. When you can have fewer workers on-site at once, you’ll need to either extend your timeframe or make allowances for longer days. At our firm, we’ve implemented staggered shifts to keep the number of workers on a cannabis facility job site low; sometimes this means we arrive before the start of the day for the cannabis company employees then a second crew leaves long after the retail or cultivation workday is done.
3.Cleaning and disinfecting are essential; signage is key to ensuring success.
Special attention should be applied to more stringent disinfecting and cleaning processes needed during this pandemic. The cannabis company, the contractor, or both should ensure the availability and use of hand sanitizer. Additionally, signage will remind people to develop habits that keep everyone safe. Proper signage with construction site guidelines (e.g., signs urging trade partners employees cut employees to wash their hands, maintain six-feet distance, etc.). To ensure our teams are compliant, we’ve created a “safety bucket” that goes to all our job sites and is restocked regularly with updates to its safety guidelines binder; safety signs, first aid kit supplies, caution tape, blue tape, hand sanitizer, face masks and gloves. It also contains a fire extinguisher, so we are covering general safety as well as doing our best to contain the COVID-19 spread.
4.PPE is no longer optional.
Wearing protective face coverings (masks) and using gloves where they make sense is no longer a “nice to have.” Cities and states across the United States are enforcing social distancing rules and apparel requirements; job sites are at risk of being shut down if construction firms don’t comply. Additionally, since cannabis companies are so visible to many regulators, practicing over-compliance in this area will ensure that your overall compliance remains buttoned-up and inspection-ready.
5.Make as much progress working remotely as possible, before, and during onsite work.
It is clearly advisable to delineate between activities that can be done remotely versus on the job site. We’ve found that nearly the entire pre-construction process can take place via video conference calls. That includes conversations around budget, constructability, timeframe, and most design dialogues. Allowing the design and construction teams to collaborate together from the beginning encourages joint problem solving and streamlines communication throughout the project—an essential element because unusual circumstances like the pandemic nearly always require real-time troubleshooting.
Cannabis leaders’ and employees’ resourcefulness during the COVID-19 pandemic is a testament to the resiliency of this industry. While situations beyond the control of cannabis companies like a more conservative funding environment may damper capital outlay in the short-term, the continued strong demand for product even in times of great upheaval means the future is bright. Construction, like cannabis, is open for business and standing by to help support your long-term expansion goals.
Andy Poticha is principal at Cannabis Facility Construction. Since 2015, CFC has been involved in more than 30 cultivation facilities, processing centers, and dispensary projects in nine states, making them one of the longest-operating design-builders in the cannabis industry.
#IndustryEssentials Webinar Recording – Fireside Chats with NCIA’s Government Relations Team: SAFE Banking – What Will It Take?
In this edition of our Fireside Chats with NCIA’s Government Relations Team originally aired on Wednesday, June 24, 2020 we hosted a conversation surrounding the progress of the SAFE Banking Act with special guest Congressman Ed Perlmutter (D-CO).
The SAFE Banking Act passed the House of Representatives in September 2019 in an overwhelmingly bi-partisan vote of 321-103. However, during the COVID-19 pandemic, the cannabis industry’s need for financial certainty has become even more pronounced, as cash transactions should be minimized to limit possible exposure to the virus. Although the House of Representatives included SAFE Banking language in its recently passed coronavirus relief package (the HEROES Act), the bill’s fate in the Senate is still uncertain. That leaves many of us asking: what’s the hold up? What will it take to get SAFE over the finish line? Join us as we discuss various options moving forward and what it will take to get this legislation signed into law.
Panelists:
Congressman Ed Perlmutter (D-CO) U.S. House of Representatives
Tanner Daniel Vice President American Bankers Association
Jack Jacobson Advisor Thompson & Coburn LLP
Michael Correia Director of Government Relations National Cannabis Industry Association
Michelle Rutter Friberg Deputy Director of Government Relations National Cannabis Industry Association
Now that COVID-19 shelter-in-place orders have eased restrictions for businesses to re-open across the country, employees and employers alike will have questions about returning to workplaces. Each city, county, and state will have its own specific requirements as to when and how you can re-open your business so you should be sure to check your own regional and municipal requirements. Whether you are getting ready to re-open or have been operating, we provide some FAQ’s to help facilitate a safe and compliant operation for your cannabis business in this new COVID-19 era.
Do my employees have to come in?
The short answer is yes, with caveats. You have the right to request that your employees return to work where the local rules allow for it. Please keep in mind that your re-opening must comply with local guidelines in order for you to require your employees to return to work. However, simply notifying them to return to work is only the start of the process. If they qualify for certain leaves, they can take that. Remember that the new Families First Coronavirus Response Act (FFCRA) will be effective until December 31, 2020. If they require accommodations, these need to be considered. Otherwise, if an employee has no special consideration and you need them in order to operate, you can take action if they refuse to return.
The practical reality is that many people are hesitant and afraid to return to work, especially without knowing how they will be protected. Most employers are being flexible about when and how they are bringing employees back to the workplace, especially if employees have been successful with working from home, have childcare issues, or are in a vulnerable population. If you are creating a workplace protection plan (see FAQ #2), consider sharing that plan in advance with your employees to ease their minds and make sure everyone knows what to do when they return to work.
Always remember, there is a difference between someone saying that they don’t want to return to work because they are generally afraid and someone saying specifically “I’m afraid to come back because I am immunocompromised.” And remember that an employee does not need to specifically ask for an accommodation. Simply advising that they are immunocompromised triggers your requirement to engage in the interactive process, which could result in modified hours, a special mask, moving a workspace, continued telecommuting, different job duties, or a leave of absence.
How can you keep employees safe?
With a pathogen as contagious and lethal as the coronavirus that causes COVID-19, employees will rightly want to know how they will be protected. To reassure employees, create a workplace protection plan that addresses the identification and isolation of sick employees, social distancing, workplace hygiene, and workplace cleaning. Share all safety steps that are being taken to maintain a safe work environment with your employees. Of course, each workplace is unique and will require different policies tailored to their specific sites.
General policies you should consider adopting include enforced safe distancing policies, temperature and/or daily question screenings, continued education on the importance of frequent hand-washing, cleaning and sanitizing of workspaces, minimal face touching, staying home when sick and self-monitoring of symptoms. Some examples to help maintain a safe worksite include having ample hand sanitizers available throughout the worksite, keeping office doors closed, wearing appropriate face coverings, marking off the 6-foot spacing with tape or other indicators, designating hallways and stairways as one-way, propping open doors to eliminate the need to touch handles, adding Plexiglas barriers at workspaces. Employers may also consider closing common areas or limiting the number of people who may use such spaces at a time.
Does the company have the right to ask about employee health history and take temperatures?
Yes. Employers are allowed to ask about coronavirus-related symptoms and take the temperatures of employees under guidance from the Equal Employment Opportunity Commission (EEOC), and some states now require it. The EEOC also permits employers to mandate that employees be tested for the virus before entering the workplace under certain circumstances, such as known exposure to someone already infected by the virus.
Testing should be administered in the least invasive way possible, like utilizing temperature guns or forehead temperatures. Testing should take place at the earliest possible opportunity at the workplace, to protect employees who have made it through already. Consider staggering start times, so that lines do not form. If a medical professional or person with medical training is available, have them administer the temperatures. If somebody with medical training is not available or onsite, the company should consider whether managers or HR employees may be trained to administer and read the test results.
If temperature taking at the workplace is mandated, the time spent being tested and waiting for a test should be considered part of the workday, and the process should be well thought out to eliminate crowding. If an employer requires the temperature be taken at home before coming in to work, the employer should consider allotting a few minutes on employees’ time cards for doing so. Consideration must also be given to providing notice to employees of the temperature screening process, data being collected and kept (if any) and the consequences for failing a screening. Please note that any data collected must be kept securely and separate from employees’ personnel files.
If an employee is sent home after screening, can employers require temperature testing or a doctor’s note to confirm they are no longer infected?
Yes. If someone has been sent home due to symptoms, administering a temperature test before allowing the employee to return to work is appropriate as the CDC recommends individuals be fever-free for at least 24 hours to ensure they have recovered. The CDC also recommends that anyone who recently had close contact with a person with COVID-19 should stay home for 14 days. The CDC, therefore, recommends that potentially exposed employees who do not have symptoms should remain home for 14 days. In such situations, please refer back to the FFCRA for requirements regarding paid leave.
Additionally, the EEOC has clarified that the ADA permits employers to require employees returning to work to provide a doctor’s note stating they are fit for duty because the inquiry would not be disability-related and/or because confirming that an employee is no longer contagious is a legitimate business necessity. The EEOC notes, however, that “doctors and other health care professionals may be too busy during and immediately after a pandemic outbreak to provide fitness-for-duty documentation. Therefore, new approaches may be necessary, such as reliance on local clinics to provide a form, a stamp, or an e-mail to certify that an individual does not have the pandemic virus.”
Can employers require employees to wear masks or other personal protective equipment?
Yes. The Centers for Disease Control and Prevention recommends the use of “cloth face coverings to slow the spread of the virus and help people who may have the virus and do not know it from transmitting it to others.” Many employers are making face coverings part of the work uniform, especially for jobs that require physical proximity. Some states and localities have required face coverings in order for businesses to re-open. Be sure to check your specific region for your own requirements. However, keep in mind that employers may be required to either provide employees with masks or other personal protective equipment or reimburse them for the expense if required to do their jobs.
Also consider whether or not to require your customers to wear masks. There may or may not be a local requirement to do so, but customers are an additional COVID-19 vector that should be considered when preparing for your employees to return. Just like employers may deny service to customers without a shirt or shoes, they can deny service to customers without a facemask.
What happens if an employee gets sick with COVID-19? What happens if someone in an employee’s family gets sick with COVID-19 and the employee is the caregiver?
Employers need to understand state laws and federal programs which have been enacted to deal with this pandemic. The FFCRA provides paid sick leave for people affected by COVID-19, as well as paid emergency family leave under certain circumstances including when the employee’s child care is unavailable for reasons relating to COVID-19 or when the employee must care for someone subject to a quarantine order or advised by a healthcare provider to self-quarantine. The United States Department of Labor has issued a helpful summary of FFCRA.
What if a co-worker gets sick?
Privacy rights must be maintained, but employers must also maintain a safe workplace and the law allows for them to do so. If temperature screening reveals a fever, that employee should be immediately sent home with return-to-work instructions. The employer should follow up with the employee regarding who they worked with, all the locations they worked and any other information to be able to notify all individuals who the employee came into contact with and comply with the most current local, state, and federal public health recommendations. If an employee calls in sick specifically with COVID-19, the employer should do the same. Actions may include closing the worksite, doing a deep cleaning, and/or requiring employees to work from home for a period of time. If deep cleaning is called for, the CDC recommends hiring professionals.
Under no circumstances should sick employees be identified by name. Notification to affected employees must not reveal any personal health-related information of an employee.
Member Blog: While You Are At Home (Part 2) – Time To Prepare For Achieving GMP Certification
In our last article, we discussed the benefits of Good Manufacturing Practices as a means to increase productivity, efficiency, and to drive accountability within an organization. With cannabis and hemp businesses negatively impacted by the ongoing COVID-19 pandemic, tight budgets are even tighter and existing room for errors are tighter than ever. As we begin to carefully rise out of the pandemic, failing to address recurring errors and inefficiencies will be catastrophic. In this follow up article, we dive into a few key systems that make up a GMP facility that you can get started on regardless of whether you are at home or on-site.
Internal (Self) Auditing
Even the most thorough and diligent people make mistakes or forget something from time to time. When you have a business that requires multiple people to make it run, the chances of a mistake increase exponentially. Left unchecked, this can result in catastrophic issues such as inventory reconciliation issues, customer dissatisfaction, product nonconformities, recalls, and even lawsuits. An internal audit program utilizes checklists to periodically conduct independent reviews of all operational areas at predefined intervals. Non-conformances are identified, and corrective action plans are implemented. This best practice is not only a GMP requirement but drives continuous improvement within your organization, ensuring:
List out all functional areas
Generate a matrix to establish the frequency of auditing for each functional area (we recommend every functional area be audited at least once per year – you can spread the auditing workload out over a calendar year rather than doing a full business audit once a year).
Conduct reviews of relevant procedures, documents, and records within those areas
Document the findings (including non-conformities)
Develop corrective action plans with the functional area manager to reconcile these non-conformities
Establish a timeline for closeout
Verify the effectiveness of the corrective action by conducting a spot audit 30-days later
Supplier Management
Did you encounter new challenges with the ability of your existing suppliers to provide you with the quality and timeliness of your raw materials, parts, or ingredients for your operation? Supplier management is a key component of a GMP program and ensures that you are able to deliver on your promises to the final client, be it the customer/patient, or another business in the supply chain. Items to include in a supplier management program include:
A Vendor Qualification Form
Quality Agreements
Right to Audit
Terms and conditions regarding product quality (specifications), and % of on-time performance
Documentation – upon delivery and retained over time
Review your existing contracts and supplier program. Don’t have a formal program in place? Get one started now based on existing relationships and their frameworks, and enjoy the benefits of this program as the economy slowly reopens.
Document Control
Do you have a list of all procedures, forms, and record books? Are they all stored in one binder in the Compliance office or do personnel have access via an electronic Document Management System. How do you ensure when a revision to a document is made that the old one is removed from circulation and not accidentally used by an employee? Document control is a pesky activity that many see as an administrative burden. However, discovering that a new formulation recipe was not being followed by a few employees because they were still using an outdated copy of the procedure for the last 3 months will justify any administrative burden and then some. Fortunately, being the year 2020, affordable electronic systems exist to streamline the process of effectively documenting and communicating all changes to relevant personnel, keeping your business compliant and operating efficiently.
Cleaning and Sanitation Validation
It is likely you increased your cleaning and sanitation regiment in light of COVID-19. How will you know when it is appropriate to scale back to pre-COVID regimens? Do you have any evidence that your prior cleaning and sanitation procedure was effective? Many companies are surprised to hear that their procedures are grossly ineffective. In one example, a company required personnel to wear Crocs in the ‘clean’ production areas. They also wore copious amounts of PPE (fresh lab gown and pants, hair nets, face shields) any time they went into a cultivation room. However, they suffered from significant pest outbreaks that seemed to spread from room-to-room with ease. They even had sticky mats outside of every room. The problem? The Crocs! A simple ATP test revealed bioburden levels that would make a college football port-o-potty seem clean. They were able to reduce their PPE levels by reorganizing workflows and periodically disinfecting the crocs, and their pest outbreaks disappeared within 4 weeks!
The cost – a few hundred dollars in testing for pathogens every week as part of their cleaning and sanitation program. By validating their results (running multiple tests and coming up with the same non-detect result) they were confident that their processes were effective (or as we call it in the GMP world – Validated).
Risk Management and Business Continuity
This final one is not an explicit GMP requirement, but, when built into your overall Quality System can provide you with quantifiable benefits. One of the other business disruptions that became evident in the COVID-19 era was how many companies did not have an effective Workplace Crisis Management Plan in place. Along with the GMP audit process it is recommended to review and update business continuity plans. What was learned during COVID-19? Where are gaps in the chain of communication, processes, and policies? How can we improve our training programs? Taking time to improve and adapt operating procedures will continue to build trust and effectiveness in your business.
Merril Gilbert, Co-Founder and CEO of Trace Trustand A True Dose™ and hGMP™ the first universal independent certification programs for dose accuracy in legal Cannabis and Hemp derived ingestible products. Always at the forefront of emerging trends on the future of food, technology, health and wellness, she leverages 25 years of experience of creative development, operations and investment for everything food and beverage. Current Chair of the NCIA Education Committee.
David Vaillencourt, CEO of The GMP Collective. David and his team at The GMP Collective bring decades of pharmaceutical and food industry best practices to cannabis and hemp. He holds a Master’s Degree, is a Certified Food Systems Auditor and brings a decade of experience in various governmental scientific work. David supports the industry in many ways, including serving as an Officer on ASTM International’s D37 Cannabis Standards Development Committee, participation in NCIA’s Facility Design Committee, and has also developed cannabis training content for college courses.
Member Blog: Cannabis Technology – Six Predictions for the Future of Cannabis Tech
by Barry Saik, Chief Executive Officer of Greenbits
Big changes are coming to the cannabis industry.
At least, that is the outlook shared by cannabis experts and lawmakers across the political spectrum. Even people who oppose federal-level legalization have to admit that the current status quo is unlikely to hold, and that popular opinion continues to sway towards the creation of a legitimate nationwide cannabis industry. Technology is playing a crucial role in connecting people inside and outside the confines of that industry.
How Cannabis Tech Will Evolve in 2020 and Beyond
There is considerable movement towards legalization in an increasing number of states. Surging demand has been keeping the cannabis industry afloat even in the worst-hit areas of the global Coronavirus pandemic. While federal-level legalization may be a long shot for the calendar year, there is good reason to believe that several new cannabis markets will open.
Many of today’s most exciting cannabis tech trends have already started gaining inertia. These movements are likely to continue picking up steam well into 2020 and beyond, even if federal-level initiatives prove unfruitful by the end of the year:
Expanded Payment Options
So far, cannabis has been a cash-only industry. Debit card transactions are gradually making their way into cannabis markets, thanks to cashless ATM solutions and a variety of online payment processors. The trend towards cashless payments is likely to continue, whether federally-backed banks support it or not.
If the federal government approves a bill that allows banks to fund and support compliant cannabis businesses, consumers will see a remarkable surge in industry development. Online ordering will likely become the new norm, powered by increasingly sophisticated e-commerce systems.
Without the support of federally backed banks, the market is likely to rely on unicorn FinTech innovators who can find ways to sidestep federal stonewalling. Compliance and cash availability will be issues, but solutions similar to those already in place will nonetheless flourish thanks to steady demand.
Better, More Accurate Strain Profiles
Right now, cannabis experts rely on a broad range of ambiguous, anecdotal data to differentiate strain profiles and the experiences they offer. There is not enough hard data to offer a quantitative comparison between any two strains.
Terpene research is going to change this. These aromatic oils are responsible for the telltale smell unique to each strain, and they have been shown to contribute to each strain’s medicinal and psychoactive effects.
The availability of hard data will transform the way consumers categorize cannabis. The goal is to go beyond the “sativa vs. indica” distinction and tell consumers exactly what to expect from each strain on an individual basis. In time, this may lead to an entirely new system of categorization for cannabis products.
A New Spotlight On Consumer Convenience
Colorado has implemented cannabis hospitality licenses as of 2020, and cannabis legislators around the country are taking a close look at the effects of the new rule. California already has a few consumption-friendly public locations, but this is very much a brand-new field where cannabis legislation – and cannabis technology – have yet to fully intersect.
On a similar note, Colorado is following California, Nevada, Oregon, and Massachusetts in allowing for cannabis delivery. These simple regulatory changes will have effects that transform consumer expectations in the industry, and the trend is towards convenience.
Expect a new brand of cannabis entrepreneur fusing technology and cannabis culture in ways never before thought possible. People are going to develop solutions that help solidify cannabis culture’s place in the local environment, capitalizing on convenience to do so.
Operational Experts Will Become Highly Sought After Cannabis Executives
There are several high-profile companies making movements towards consolidating their multi-state presence. At the moment, this is made difficult by the fact that every state has a unique set of rules for its cannabis businesses to abide by. This makes economies of scale difficult to achieve.
Operational talent is the specific kind that these large-scale organizations are going to be looking for. Until now, many multi-state operators have been run primarily by finance-oriented executives. This provides a good basis for setting up and closing acquisitions, but it will fall on newly built operational teams to build compliant solutions for multi-state organizations.
Hemp Will Open the Door to Cannabis Agriculture
The 2018 Farm Bill has led to official, federal-level recognition of hemp products. While this has not resulted in a nationwide hemp craze, the participating states are expected to bring non-psychoactive marijuana cultivation to the forefront.
So far, the USDA has approved 2020 hemp applications in Washington, Wyoming, Georgia, Iowa, and Pennsylvania. There are also fifteen tribal plans under review. Increased attention to hemp will lead to an increased dedication of tech resources to the needs of hemp farmers – which are necessarily distinct from those of psychoactive cannabis cultivators.
Market Intelligence Will Take Center Stage
A handful of ancillary industries – from cultivation-friendly real estate specialists to cannabis law firms – are expected to grow around the burgeoning industry, but market intelligence is the one most experts are excited about.
Industry leaders in every state are looking for data on cannabis users. Sales data can help inform industry players on better, more efficient ways to use limited cultivation resources. Merchandising data can help dispensaries build lasting partnerships with non-cannabis brands. A wide array of new businesses will enter the cannabis market without necessarily being growers, processors, or dispensaries.
The ability to securely turn dispensary transaction data into readymade analytic insight will prove to be one of the most valuable assets a cannabis company can have. The fact that state regulation already requires dispensaries to gather and report transaction information means that, in many cases, half of the work is already done.
2020: The Year for Cannabis Tech
Technology has historically played a crucial role in achieving civic and social progress, which then informs newer technological initiatives. Cannabis technology is already helping regulators meet the demands stipulated by voters who want safe, legal access to marijuana products, and this trend is going to continue.
Barry Saik serves as Chief Executive Officer of Greenbits, a leading cannabis retail platform that empowers more than 1,200 cannabis retail locations across 13 states with a safer and smarter way to manage day-to-day operations and maximize store performance.
Barry leads all functions of the company, which processed $3.3 billion in legal cannabis transactions in 2019. Through its platform, Greenbits offers the full suite of services that cannabis retailers need – automated state-by-state compliance, point of sale, inventory control, and personalized insights – to enable owners, managers, and budtenders to run, protect, and grow businesses with ease.
A veteran of Silicon Valley start-ups and global tech companies, Barry brings a wealth of experience in scaling and leading integrated teams building software solutions that help small businesses grow.
Barry joined Greenbits as CEO in late 2019 after founding and running the SmartLine business at GoDaddy (NYSE: GDDY), a global company that helps entrepreneurs and businesses to be successful online. Centered around providing a second phone line that connects with a smartphone, the unit grew to $8 million in revenue in the first year under Barry’s leadership.
Before GoDaddy, Barry spent 15 years working in a variety of senior roles at Intuit (NASDAQ: INTU) and its marquis tax product, TurboTax, the leading software solution for business and personal tax filings. Early in his tenure, Barry led the founding team of TurboTax Online, which 40 million people used in 2019 to pay their U.S. taxes.
As a senior leader in TurboTax’s marketing department, Barry oversaw the creation of the company’s first television ad campaign, which resulted in a 12 percent spike in sales. He also led TurboTax’s engineering team, which is charged with programming the ever-evolving federal and state tax codes into the software, a centerpiece capability of the product.
Barry graduated from Stanford University with a B.S. in mechanical engineering and an A.B. in communications. He received an M.B.A. in marketing from the UCLA Anderson School of Management.
Greenbits Company Description
As the pioneering leader of regulated retail, Greenbits is the complete cannabis retail management platform. Founded in 2014, we empower 22,000 users in 1,200 retail locations across 13 states. As the market share leader, Greenbits rings $3.7 billion in sales annually, comprising one-third of all cannabis sales in adult-use states. With the largest and fastest-growing network of cannabis retailers, we serve the most locations, reach the most customers, process the most transactions, and ring the most sales in the industry, making Greenbits the best-selling and most trusted cannabis retail platform nationwide.
Greenbits provides smart management solutions that help cannabis retailers maximize performance and make better business decisions. Our robust retail platform – with automated state-by-state compliance, inventory control, and personalized insights – enables owners, managers, and budtenders to run, protect, and grow their businesses with ease. www.greenbits.com
From The Hill: Lawsuit to Challenge Industry Exclusion from SBA COVID-19 Relief Revving Up
For many businesses struggling during the COVID-19 induced shutdown, assistance from the Small Business Administration (SBA) through the Paycheck Protection Program (PPP) is the difference between lifeline and economic ruin. But for thousands of professionals serving state-legal cannabis businesses, including non-profits like NCIA and innumerable small businesses alike, access to PPP money remains elusive. A group of lawyers is in the process of developing a legal challenge to this unjust treatment.
The SBA Policy Notice on April 3, 2018, precludes any company that has received anyrevenue from a marijuana business from receiving SBA assistance, including service providers like lawyers, accountants, or consultants which provide counsel to thousands of legitimate cannabis businesses around the country. This SBA guidance has prevented many firms from applying for PPP loans and casts doubt as to whether firms that received loans but have done work for cannabis clients will have their loans revoked.
A coalition of law firms led by Yetter Coleman LLP is seeking to raise $150,000 for a legal defense fund to strike down the guidance. The lead plaintiff will likely be a law firm whose PPP application was denied because of this rule. If successful, the challenge would benefit the industry going forward by removing the “Indirect Marijuana Business” guidance from SBA’s eligibility determinations. But time is of the essence with the PPP program winding down and the forgiveness rules are already likely being drafted.
In a recent letter to Treasury Secretary Mnuchin and SBA Administrator Jovita Carranza, the American Bar Association (ABA) requested the SBA to clarify eligibility under the business loan program to allow access to the Coronavirus Aid, Relief, and Economic Security (CARES Act) funds through the PPP for lawyers and law firms that provide services to cannabis businesses operating legally under applicable state laws. According to the ABA, of the 1.3 million attorneys practicing in the U.S. in 2019, approximately 78% are in jurisdictions where marijuana sales are permissible under state law. Under the current guidance, the ABA is concerned that many of these lawyers and their firms could be unfairly disqualified from receiving PPP assistance.
“The ABA supports amending federal law to ensure that lawyers do not face the threat of criminal charges when they represent clients in states that have legalized marijuana,” the June 5 letter states. “Even before those changes are made to federal law, lawyers should also not be penalized for providing legal services to cannabis-related businesses that comply with state laws.”
In a March 22, 2020, Twitter post in response to a Washington-based cannabis business owner, the SBA publicly confirmed that cannabis businesses are not able to access the SBA funded programs even though cannabis businesses are as equally harmed by the coronavirus pandemic as other law-abiding, tax-paying small business operators. To date, the SBA has not formally addressed the eligibility of cannabis businesses for the broader Paycheck Protection Program.
Back in March, several industry and advocacy groups, including NCIA, issued a letter to congressional leaders seeking to limit restrictions and allow cannabis businesses to obtain the same relief available to other legitimate industries. Among other things, the letter cites the unfairness of ineligibility for SBA relief for cannabis businesses given their obligations to follow federal employer requirements and the disproportionate impact ineligibility has on small businesses.
The legal U.S. cannabis industry is projected to top $20 billion in annual sales in 2020 and now employs nearly 250,000 workers. One would think access to SBA loans that support businesses in keeping this significant workforce employed during the coronavirus crisis would be an economic priority for policymakers in Washington DC. Time will tell if this goal becomes a reality.
If you are an ancillary business interested in either donating to the legal fund or willing to offer your professional support, please email Shane Pennington of Yetter Coleman LLP at spennington@yettercoleman.com.
#IndustryEssentials Webinar Recording – Policy Council Conversations: Just Say No – Keep the DEA out of Cannabis Research
In this edition of our Policy Council Conversations series originally aired on Wednesday, June 3, 2020 we hosted a conversation surrounding our public comments submitted to the the Drug Enforcement Administration regarding proposed rulemaking on cannabis research.
The Drug Enforcement Administration issued a notice of proposed rulemaking on cannabis research in 2020. If adopted, this rule would fundamentally change how cannabis research is conducted. NCIA submitted public comments, rejecting the DEA’s power grab and strongly suggesting that a public health agency (i.e. Health and Human Services, National Institutes of Health, etc.) lead on cannabis research. Simultaneously, lawyers at Yetter Coleman filed a Freedom of Information Act lawsuit against DOJ, demanding the release of an OLC memo relied upon by DEA in their rulemaking. That successful suit was brought on behalf of Scottsdale Research Institute. This panel discussed the critical importance of cannabis research, the DEA rulemaking and NCIA’s numerous objections, and the lawsuit against DEA and the resulting disclosure of the DOJ policy memo.
Panelists:
Andrew Kline
Director of Public Policy
National Cannabis Industry Association
Jodi Avergun
Chair, White Collar and Criminal Defense and Investigations Group, Cadwalader, Wickersham & Taft LLP
Former Chief of Staff, Drug Enforcement Administration (DEA)
Sue Sisley, MD
Principal Investigator
Scottsdale Research Institute
In this edition of our NCIA Committee Insights series originally aired on Wednesday June 3, 2020 we were joined by members of NCIA’s Scientific Advisory Committee for a thorough discussion on label claims.
Panelists discussed how label claims came to be, what they look like in sister industries, and why label claims are important for cannabis products. Attendees will leave with a thorough understanding of what drug labels look like, what food labels look like, and why cannabis labels are different. A review of state based regulatory requirements and why they matter was also provided.
Panelists:
Tiffany Coleman Director of Quality Copperstate Farms Management
Cynthia Shelby-Lane
MD
Shelbylane MD PC
Committee Blog: Practical Tips for Cannabis Businesses Impacted by Theft and Property Damage
As the country continues to grapple with the murder of George Floyd and its aftermath, we have seen reports that numerous cannabis dispensaries in California, Illinois, Oregon, and elsewhere have been the victims of theft and property damage. A number of shops have been hit multiple times in successive days, with many reports indicating that businesses are being targeted by organized groups not involved in protests.
The owners of these dispensaries, like many of the other business owners around them, are likely asking themselves: Is my insurance going to cover this? The good news is that, for many of them, it is likely that they will have coverage for at least some of the losses that they have suffered. What losses are ultimately reimbursed can depend on a number of factors, including what an impacted business owner does in the immediate aftermath of an incident. Thus, we provide below an outline of the steps that businesses should follow in the unfortunate event that your shop has been damaged:
File a police report.
Immediately report the loss to the relevant cannabis regulatory authority (check both state and local regulations to ensure full compliance).
Get in contact with your insurance provider and file a claim immediately. Once filed, you will receive a claim number and an assigned claims adjuster who you will work with from the very beginning to the end of the claim.
Ensure your place of business is well protected (even after the loss). Do your very best to continue to protect what you can after a loss.
Document everything. Take photos, save and review your video surveillance. Your insurance company will ask for this when you file a claim
Begin taking inventory of everything that has been damaged, destroyed, and stolen. Your insurance company will need this as well.
Review your insurance policy again and speak with your insurance professional.
Does your insurance policy cover civil unrest, theft, or vandalism coverage? Is it excluded? Is it not listed at all? Many cannabis businesses operate under property insurance policies that will cover losses for property damage and theft that occurs during a public disturbance.
Some insurance policies, however, contain “protective safeguard” endorsements creating certain requirements that the cannabis business owner must follow or a claim can be denied. Many of the requirements include a central burglar alarm, cameras, an approved vault or safe room, and other similar risk mitigation measures. Pay special attention to these protective safeguard requirements, and ensure that all are met. This can be particularly important for businesses that have already been the victims of crime. If the safety systems in question have been damaged or are otherwise inoperable as a result, make sure to put your insurer on notice of this fact and, ideally, get them to approve a temporary accommodation relieving your business of the relevant protective safeguard.
Policies may also be “sublimited” for certain types of property coverage, meaning that limits for particular types of loss are lower than the overall policy limits. Impacted businesses should look for a page entitled “Property Optional Extension Endorsement.” The types of coverage that might be sublimited include:
Employee Dishonesty;
Money and Securities;
Outdoor Property (Fences, Radio/TV Antennas/Satellite Dishes and Signs Outdoor Property (Trees, Shrubs or Plants);
Personal Effects and Property of Others (relevant if a dispensary has not taken title to product): and
Valuable Papers and Records (Other Than Electronic Data).
In addition to taking these actions, dispensary owners in cities where civil unrest is ongoing should give consideration to reducing their store hours or even closing entirely until conditions change in order to keep their staff safe. For those concerned about leaving product in their stores and having it stolen, some states, including California, allow for licensed cannabis dispensaries to remove product from a licensed facility in the face of a public disturbance or emergency. Nonetheless, businesses should always consult their state and local regulations and/or consult with an attorney before removing cannabis products from their facilities in any way that would normally be impermissible under applicable laws.
In sum, while cannabis dispensaries unfortunately appear to be attractive targets for opportunistic criminals, there are a number of steps these businesses can and should take right now to help them begin to pick up the pieces.
In this edition of our NCIA Committee Insights series originally aired on Monday, June 1 we were joined by members of NCIA’s Retail Committee for a discussion highlighting best practices in cannabis retail.
According to a recent Gallup poll, 66% of Americans support the federal legalization of recreational marijuana and with that comes an ever-expanding retail footprint. This session is designed to address the unique challenges faced by cannabis retail leaders and entrepreneurs in planning their operations for success in a modern retail environment. The panel will take a look at Talent, Brand, and Compliance strategies with real-life case studies to help provide valuable take-aways for the implementation of a Retail 2.0 strategy.
Panelists:
Liz Stahura
President & Co-Founder
BDSA
Ryan Rapaport
Managing Partner
Digital Venture Partners
Melissa Stapley
Founder
MJ Hybrid Solutions
Larina Scofield
Director of Operations
Lucy Sky Cannabis Boutique
Webinar Recording: Managing Novel Risks During The COVID-19 Crisis (Part 2)
Watch this webinar recording to learn more about managing novel risks during the COVID-19 Crisis.
A conversation with industry legal and financial experts discussing how cannabis operators can mitigate the financial risks presented by coronavirus.
Get actionable advice and insights regarding how to manage your financial risk and avoid pitfalls.
Topics addressed include:
Managing finances in a business deemed “essential”.
Navigating the legal, financial nuances of assistance programs.
Federal and State Financial assistance programs.
What aspects of these programs can cannabis businesses utilize?
Legal ramifications and implications of applying for assistance.
CARES Act, upcoming changes to SAFE Banking, and what they mean to you.
Frequently misinterpreted language in 280E.
What coronavirus teaches us about the import of proactive financial risk management.
The panel:
Summer Jenkins, CLCS, Senior Product Manager of Cannasure Insurance Services, LLC (Moderator)
Christopher Davis, Executive Director of the International Cannabis Bar Association (INCBA)
Michelle Rutter Friberg, Deputy Director of Government Relations at NCIA
Kevin Haller, CPA, Principal of Akene Consulting LLC
#IndustryEssentials Webinar Recording – Fireside Chats with NCIA’s Government Relations Team: Highlighting Advocacy
In this edition of our Fireside Chats with NCIA’s Government Relations Team originally aired on Wednesday, May 27th, Mike and Michelle chatted with other industry association lobbyists from the Marijuana Policy Project, the Drug Policy Alliance, and NORML for a discussion on the importance of advocacy.
For decades, cannabis activism, advocacy, and lobbying have been intertwined. Sometimes, it’s portrayed that “advocacy” groups and “industry” associations are at odds, however, you’ll be surprised to learn that while we may have differing opinions or strategies occasionally, we all still work incredibly closely together and consider one another friends. We hope you can join us for a discussion about how cannabis advocacy has changed over the years, an inside look at what’s next in state and federal policy, and learn more about why cannabis legalization can’t (and won’t) pass without addressing the harms of the war on drugs.
Panelists:
Michael Correia
Director of Government Relations
National Cannabis Industry Association
Michelle Rutter Friberg
Deputy Director of Government Relations
National Cannabis Industry Association
Chris Lindsey
Director of Government Relations
Marijuana Policy Project
Maritza Perez
Director of National Affairs
Drug Policy Alliance
Justin Strekal
Political Director
NORML
NCIA Today: May 2020 Episode – HEROES Act, #CannabisIsEssential, and New Fireside Chats for NCIA Members
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 NCIA #CannabisIsEssential movement, coordinating efforts between our communications, public policy, and government relations teams. We have been hard at work, exploring avenues for the legal cannabis industry to access federal COVID relief benefits, like including SAFE Banking language in the recent HEROES Act.
We check in with NCIA Deputy Director of Public Policy, Rachel Kurtz, to hear some of the recent highlights from our Allied Associations Program. Fortunately, most states have deemed cannabis as essential, and our state associations are working in their areas to make relief options, or commerce opportunities, easier to reach.
Kim Kovacs, President of the Arcview Group, checks in with Bethany to discuss the relaunch of their Women’s Investors Network. The cannabis industry leads on women in C-suite and leadership roles, but that doesn’t mean we can be complacent. ArcView has been offering regular webinars, and other digital programming options, for women energetic about entering the space. The next will be looking at the science behind the plant, join the conversation!
We’ll see you next month for NCIA Today!
Webinar Recording: All Gave Some, Some Gave All – A Policy Discussion on the Veterans Cannabis Conundrum
In case you missed this webinar on Memorial Day, watch this recording.
Especially around Memorial Day, it’s important to remember the reason for the holiday: our veterans. Unfortunately, though all gave some and some gave all, the vast majority of our veterans are still unable to access safe, regulated cannabis. Many individuals in the veteran community struggle under unique health burdens stemming from their honorable service, and have experienced little success in managing their conditions with available pharmaceuticals. Through cannabis, veterans of all generations and with various conditions have experienced improvements in their quality of life by using cannabis.
In Congress, two bills aimed at tackling this issue have already passed out of the House Veterans Affairs Committee — H.R. 712: the VA Medicinal Cannabis Research Act of 2019, sponsored by Congressman Lou Correa (D-CA) and H.R. 1647: the Veterans Equal Access Act, sponsored by Congressman Earl Blumenauer (D-OR). In March, the Congressional Budget Office scored H.R. 1647 and found that passing the bill into law would cost the federal government exactly $0.
Enjoy this webinar focused on cannabis, health, and our armed services members. NCIA’s Government Relations team is joined by none other than the lead sponsors of the VA Medicinal Cannabis Research Act of 2019 and H.R. 1647: the Veterans Equal Access Act, Congressmen Lou Correa and Earl Blumenauer, respectively. Our panel also includes the cofounders of the Veterans Cannabis Coalition, Eric Goepel and Bill Ferguson. This unique opportunity will allow you to hear from the lead sponsors of legislation designed to give our veterans the best quality of life possible, interact with member(s) of Congress, and learn more about the prospects of these bills passing into law.
Committee Blog: Employee Privacy Guidelines In A Time Of COVID-19
By NCIA’s Human Resources Committee
Privacy Guidelines
As employers across the country bring back their employees, coronavirus risks remain top of mind. These concerns are important to ensure both the safety of their employees and the ability of their businesses to remain open. No one wants their employees to experience a spike in infections, or to subsequently close down as a result. However, protecting employees and businesses from COVID-19 is not as simple as asking an employee if they are sick. Federal and state laws restrict the type of medical information an employer can require an employee to share, even during the pandemic.
Under the Federal Americans with Disabilities Act (“ADA”) and the California Fair Employment and Housing Act (“FEHA”), medical inquiries are generally not allowed unless they are job-related and consistent with business necessity. Under this standard, medical inquiries are allowed if the employee poses a “direct threat” to him/herself or others because of a medical condition. FEHA regulations provide that factors to be considered when determining the merits of the direct threat defense include, but are not limited to:
the duration of the risk;
the nature and severity of the potential harm;
the likelihood that potential harm will occur; and
the imminence of the potential harm.
FEHA regulations say that the analysis of these factors should be “based on a reasonable medical judgment that relies on the most current medical knowledge and/or on the best available objective evidence.”
Unfortunately, this leaves the answer to whether employers may make medical inquiries or take temperatures “it depends.” Ultimately it becomes a business/risk tolerance decision. Asking employees questions about their medical condition and taking their temperatures may be more defensible if there has been documented exposure to COVID-19 in the workplace or a high rate of contagion in the community.
The answer will also depend on what the Centers for Disease Control (“CDC”) determines. If the CDC makes a determination that COVID-19 is significantly more severe than the seasonal flu, it could pose a “direct threat.” Under the ADA, a direct threat is “a significant risk of substantial harm to the health or safety of the individual or others that cannot be eliminated or reduced by reasonable accommodation.” When the CDC advises testing, employers will have better standing to require it. CDC guidance is available here.
The Equal Employment Opportunity Commission has also issued specific COVID-19 guidance. The EEOC has advised employers that they may ask all employees who physically enter the workplace if they: (i) have COVID-19; (ii) have been tested for COVID-19; or (iii) are experiencing symptoms associated with COVID-19. Employers may also check the temperatures of employees entering the workplace. If an employee refuses to answer or refuses to submit to a temperature check, the employer may refuse to permit him or her to enter the workplace. However, employers should reassure refusing employees that the questions are simply designed to ensure workplace safety.
Employers may then single out individual employees for temperature checks or questioning only if the employer has a reasonable belief, based on objective evidence, that the employee has COVID-19 or symptoms associated with COVID-19. Employers may also ask employees if they have had contact with anyone who has been diagnosed with COVID-19 or who has symptoms of COVID-19.
If a manager learns that an employee has COVID-19 or symptoms associated with COVID-19, the manager may disclose this information to which employees are necessary to take action consistent with CDC guidance. As a general rule, employers should try to limit the number of necessary employees” who know the employee’s identity. Everyone informed of the employee’s identity should be told to keep the information confidential. This includes telling others that an employee may be absent or working from home, but not explaining why.
If employers do decide to take temps, there are multiple additional issues to consider: who will do the testing? What training? Will nonexempt employees be paid for their time undergoing testing? What will the employer do if the employee refuses? What information is recorded? All of these questions should be addressed in advance, and the answers should err on the side of caution. Tests should be simple, as non-invasive as possible, and as little data should be recorded as possible. Data for each employee should be recorded separately; an employer should not compile a single list of employees and their temperatures. An employer could, however, maintain a record of a single employees’ temperature of time. In other words, a single piece of paper could track an individual employee’s temperature history, but not the entire workforce’s temperature history.
In summary, employers must be careful to ensure their employees’ privacy rights remain respected and protected as they return to work. Employers may take reasonable precautions to ensure infected and at-risk individuals do not work, but must be careful in the questions they ask and the manner in which they record and keep the information. If a diagnosis is confirmed, employers must also be careful about who that information is shared with. Everyone wants a safe workplace; employers must simply keep in mind that a safe workplace is one that ensures an employee’s physical safety as well as their privacy.
NCIA’s Human Resources Committee is comprised of human resource practitioners devoted to bringing best practices to the cannabis industry. Their focus is educating and bringing awareness to misclassification of employees, promoting guidelines for employee safety, clarification on wage and hour issues in the industry and creating checklists to being a legitimate employer.
Allied Association Blog: Cannabis Policy Beyond Our Borders
NCIA’s Allied Associations Program (“AAP”) facilitates cooperation between NCIA and Allied Associations and the sharing of resources for the mutual benefit of our respective memberships and the cannabis industry more broadly. The AAP provides the means for the leaders and staff of NCIA and Allied Associations to learn from, work with, and support each other.
SUPREME COURT APPROVES SECOND EXTENSION TO REGULATE CANNABIS IN MEXICO
Due to the work suspensions caused by the COVID-19 outbreak, the Mexican Senate requested the Supreme Court of Justice of the Nation for an extension of the deadline to legislate in favor of cannabis regulation. This extension is the second that has been granted; the first was petitioned after the deadline expired in October 2019 and was extended to April 30 of this year. The Supreme Court had granted this extension as a unique and exceptional situation in October 2019, appealing to the complexity of the issue.
USERS DEMAND REOPENING CANNABIS CLUBS IN SPAIN
Associations such as the Patients’ Union for Cannabis Regulation (UPRC) demand that the Spanish government allows reopening these clubs, and that cannabis be considered as an essential good for the life of these patients, as countries like the United States have done. For comparison, other businesses such as tobacco and alcohol sales have been considered essential in this country. The state of alarm has generated measures that cut off the somewhat regulated routes that exist in Spain to acquire cannabis, as is the case with cannabis clubs. These organizations allowed access to medical cannabis to about 200,000 – 500,000 people in total.
CANNABIS INDUSTRY AMID THE PANDEMIC.
The health crisis derived from the COVID-19 pandemic has disrupted all economic sectors on a global scale. The cannabis industry is not an exception and has had to adapt to new circumstances. You can find a list of policies in countries where cannabis is legal currently. According to the market research conducted by Prohibition Partners, most consumers in Europe and North America will tend to maintain or increase their cannabis purchases in the coming months (March to June).
Erick Ponce is President of the GPIC. He has worked for 16 uninterrupted years in the healthcare sector, both private and public (specializing in government sales), where he has dedicated to promoting the individualization of drugs and medications and, with this, the reevaluation of the roles played by physicians, pharmacists, and chemists.
In 2017, with Artcan as an investor, he created ICAN, with the goal of opening cannabis operations in LATAM, as well as creating a network of technical, operational and commercial infrastructure while promoting education, information, collaboration and certification of cannabis and it’s derivatives for applications in therapeutics and wellness. In 2019 he was chosen as the spokesperson for the “Grupo Promotor de la Industria del Cannabis.”
Member Blog: Off The Backburner – Compliance During COVID-19
by Mark Slaugh, CEO and Co-Founder of iComply, LLC
Operational cannabis compliance has been a vital but often ignored part of many owners’ guides to success. With the hustle and bustle that is the ever-expanding nature of the cannabis business, most owners and operators want to believe they are compliant 100% of the time.
However, anyone who owns a cannabis business and is honest with themselves knows that to understand the constantly changing regulatory updates is a constant challenge. Often, the needs of the business outweigh the time it takes to assess the best ways to remain compliant. Too often, the distractions of growing the brand, networking, and conferences distract us from what’s happening with staff, procedures, and operations behind the scenes.
This has become alarmingly evident during COVID-19.
The pandemic began affecting how different operators in different States had to adjust various emergency procedures and restrictions on how cannabis could be bought and sold. From there, pandora’s compliance box released a torrent of issues to look at.
In our experience, 95% of the industry has a reactive approach to compliance management and will scramble to take time and pay expensive attorneys fees to dig them out of trouble once they are caught.
And what you resist, persists.
During COVID-19, owners are already making procedural adjustments to remain compliant and are staying at home for a change – which has allowed them and their teams more focus and less distraction by avoiding conferences, travel, and in-person meetings as much as possible.
What they are finding is that the compliance train has been off the tracks for a while.
Naturally, as the industry grows, so does the responsibility of mitigating liability and staying on top of the backburner projects in dealing with compliance. It is not the sexiest or most fun aspect of the industry (if you aren’t compliance nerds like us).
People tend to resist being honest about it, managing it appropriately, or holding others accountable until it’s too late.
COVID has at least provided some breathing room for owners and operators to put on their facemask and dust off their SOPs or untangle the strings around poor inventory management.
Some cannabis companies are asking themselves how they can use the boredom of COVID-19 (to some degree) and the extra time saved from travel, conferences, and meetings to re-examine their operational compliance infrastructure.
We are finding that owners in the cannabis industry are lacking a transparent cannabis compliance plan that can be easily adjusted to stay ahead of regulators, rules, and to mitigate product liability. They lack accurate employee training to specific procedures with accountability and wonder why turnover is so high. They are starting to realize that inventory, books and records, and daily compliance management are creating more risk than is tolerable for a tangible reward.
The word “decimation” comes from the Roman times and was considered a military punishment in which squads of 10 (deci) would draw stones from a bag. One black stone among the white ones meant beating that soldier to death by his fellows. While extreme, the lesson was an important one and is still relevant in the cannabis industry today.
Out of every inspection by the MED, in Colorado, around 10% of licensees were found in violation and administratively punished. Having come from a banking risk management background, it is shocking to see that level of risk be “ok” with most operators.
No other heavily regulated industry tolerates such a high level of risk. Cannabis, in fact, tolerates 10x more risk loss on average than is acceptable in banking (less than 1%).
Some of the biggest backburner projects in compliance coming to the forefront are:
SOPs and Employee Training Manuals
It is crucial to have compliant procedures that are accurate to current operations. One cannot effectively and proactively run a cannabis company without valid and accurate Standard Operating Procedures and related documents. They are essential.
What we find is that most established operators have to dust these SOPs off from whatever shelf they placed them on when they finally come around to looking at them.
Inventory and METRC
Another big problem area is inventory inaccuracies which require regular reconciliation and clean up. As we all know, once the snowball effect of inaccuracy happens, it simply gets more entangled and difficult over time.
During COVID-19, regulators are doing fewer in-person visits and are relying more on their ability to look at seed to sale tracking systems to identify potential non-compliance to conduct their inspections and request specific information from operators.
Books and Records
Most cannabis companies think SOPs, audits, and inventory are compliance management in a nutshell. The detailed accountability over files, logs, and forms often escapes their mind as soon as the file is saved or placed into the file cabinet.
Like dusting off SOPs, opening the file cabinet to ensure the accuracy of these documents can be best done during COVID-19 as well. Insight to this helps improve procedures and ensure accountability of staff members from visitor logs, to pesticide applications, incident reports, and manifests.
Staff Knowledge
For many of our medium to large clients, COVID-19 has affected their staff members. When one person is infected, many others may not want to come to work, and companies are forced to hire in additional labor to meet operational demand. If this hasn’t happened, consider you might want to be prepared for it as it takes away employees for a minimum of 2 to 4 weeks.
COVID-19 is causing a wide gap due to faster training requirements and creating more risk for non-compliance, product liability, and workplace safety without proper education, knowledge and accountability for staff.
Challenges like COVID-19, rule changes, and human nature are greatly mitigated and proactively managed when cannabis companies commit to taking compliance off the backburner and putting it at the forefront. Taking the time now to do so may be better than any other time for experienced operators to better prepare for “normalcy” when it returns.
An ounce of prevention is literally worth pounds of cure. And, during COVID-19, cannabis companies would do well to prevent the “decimation” of their very valuable licenses and operations by taking advantage of the extra time and energy to do the heavy lifting necessary to take compliance off the backburner.
Mark Slaugh, CEO and owner of iComply, works in the specialist sector of compliance for the medical, retail, and hemp industries and has over 12 years’ experience in cannabis industry development, consulting, and operational compliance and over 21 years’ experience in regulations and risk management.
Due to his extensive background and education, Mark knows what it takes to move markets forward at political, policy, and operational levels. He has developed small and large startups, improved existing operations, and has protected some of the top companies in the field.
iComply provides operational compliance services and validation of over 200 cultivation, manufacturing and processing, and dispensing facilities since 2011 and iComply consults for a variety of communities, organizations, and governments. Engaging in legacy projects over the long-term, iComply builds trusted relationships to ensure industry integrity, standards, regulations, and best practices are implemented and adhered to within organizations.
Veterans And Cannabis: A Discussion With Congressional Champions
by Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations
Last week, NCIA’s Government Relations team honored the veteran community and Memorial Day through our latest #IndustryEssentials webinar. Our Director of Government Relations, Mike Correia, and I “Zoomed” with congressional cannabis champions Congressman Lou Correa (D-CA) and Congressman Earl Blumenauer (D-OR), as well as the cofounders of the Veterans Cannabis Coalition, Eric Goepel and Bill Ferguson. During the webinar, we talked about how through cannabis, veterans of all generations and with various conditions have experienced improvements in their quality of life and also discussed policy and legislation to address this conundrum. NCIA members can catch the full webinar recording, but in the meantime, check out a few highlights:
Congressman Earl Blumenauer (D-OR):
“In fact, if we were able to have the Veterans Administration (VA) embrace medical cannabis, veterans would get better care because they could deal directly with their primary care physician, who is in the best position to give them appropriate advice. But sadly, the VA is caught with this federal restriction and they have a very narrow interpretation of what they can do, and how they can do it, and they simply do not permit their physicians to work with veterans to discuss and work with — let alone prescribe — medical cannabis.”
Congressman Lou Correa (D-CA):
“These folks came back from the theater of war with a lot of invisible, psychological scars– many of them that never were addressed. Back when I was the Chair of the Veterans Affairs Committee in the state of California, I would go on to have town halls and I remember veterans more and more would ask me, ‘Hey state senator, what’s going on with cannabis? I prefer cannabis to opioids, it makes me feel a lot better, I’m being able to function much better, why can’t I be prescribed cannabis by my VA doctor?’ And that really set me off on a quest to address medical cannabis in reference to veterans. Now in Congress, that’s something that I’m trying to work on front and center, and when I say trying to — I am working on it — I’m trying to score some victories there and get this legislation to the President’s desk for a signature, but again in the context of an election coming up, it’s going to be a challenge. But nonetheless, I think it’s a task all of us must take to heart and work hard towards.”
Veterans Cannabis Coalition Co-Founders:
Bill Ferguson: “I think it’s really cool that both of those politicians you know — and you know, they’re not backbench guys either — they essentially say that, you know, like if we can get the VA bill to pass, that will be like opening the floodgates for the rest of the cannabis legislation, you know like the banking and all that kind of stuff. And I think they’re right because you know once you poke a hole in a dam, you know eventually a dam is going to break.”
Eric Goepel: “The problem is that they’re largely out of step with the population — like the general population and the veteran population. I mean Pew’s been tracking public support for medical cannabis legalization and adult-use legalization and it’s 92% in favor of medical use and 60 plus in favor of legalization. That’s pretty overwhelming when it comes to any political issue. Like these issues out-poll most politicians and popularity and certainly, maybe beyond like universal background checks, I can’t think of too many other major policy issues that have this level of public support that see no conversion into federal legislative change.”
We are all so grateful to the Congressmen and the VCC team for joining us. While Memorial Day has now passed, I’m continuing to feel so appreciative of our fallen service members. While all gave some and some gave all, the vast majority of our veterans are still unable to access safe, regulated cannabis, and since they fought for us, we’ll keep fighting for them.
As the COVID-19 pandemic continues to alter the day-to-day lives of humans across the globe in an unprecedented fashion, industries have made considerable adjustments to maintain their operations while protecting the health and safety of the workforce and the public. While some industries have had to cease operations to comply with “stay-at-home” orders, most states regulating cannabis have deemed cannabis essential, allowing cannabis businesses to continue operations during the COVID-19 quarantine period. The fact that cannabis was deemed essential in states such as California, Colorado, Illinois, and Michigan, demonstrates a major shift in public perception of cannabis and its utility. While challenges remain as they do for all industries, the cannabis industry appears poised to withstand the pandemic and to solidify its role in the economy.
Despite being deemed essential, adult-use cannabis sales have begun decreasing in states such as California, Colorado, and Nevada. Washington, however, reported record sales in April highlighting the diversity of legal markets throughout the United States. States that derive considerable sales for cannabis tourism like Nevada and California may see losses due to travel restrictions and mandatory self-quarantine periods. Although early sales reports suggest that the industry is equipped to weather this crisis, April sales only reflect the market one month into the pandemic that is likely to extend through the summer and potentially into next year. Thus, much remains unknown about the industry’s potential to stave off the impacts of an increasingly likely economic recession. Still, reports show that demand for cannabis remains strong and could potentially increase as the nation grapples with the significant financial and emotional duress associated with the pandemic.
States have taken proactive measures to ensure that patients and customers may safely access cannabis. States including California and Nevada have issued official guidance on best practices for cannabis businesses to observe to mitigate the spread of infection and preserve and promote public health. This guidance has largely prioritized the reduction of person-to-person interaction and adherence to heightened sanitation and hygiene protocols. Best practices for reducing person-to-person interaction include conducting sales by pick-up or delivery where possible, reducing the number of individuals allowed at the dispensary at any one time, and controlling the flow of visits to reduce the potential for exposure. Retailers have used space indicators like chalk, tape, and stanchions to demarcate 6-feet of separation between customers standing in line. Best practices for maximizing sanitation and hygiene include the promotion of contact-free systems such as tap-and-pay payment technology where possible, and the removal of handheld menus, tablets, and iPads, and aroma jars from dispensary surfaces. Retailers are advised to clean and sanitize commonly touched surfaces on a routine basis and to provide hand sanitizer to all employees and patrons in conspicuous locations to encourage frequent sanitization. Additionally, employers are required to monitor their employees’ health and hygiene practices. Employers should require any employer showing a COVID-19 related symptom to stay home from work.
While some businesses can rely on federal stimulus programs such as SBA loans for COVID-19 related relief, cannabis businesses cannot. Despite being equally harmed by the pandemic as other law-abiding, tax-paying small business operators, cannabis operators are ineligible for such funding because the cultivation and sale of cannabis remains illegal under federal law. While cannabis businesses are not currently eligible for federal relief programs, it appears that cannabis businesses may be eligible to defer the deposit and payment of their share of Social Security tax.
Nonetheless, as further proof of the growing bipartisan support for cannabis, multiple senators and congress members have requested that future COVID-19 relief packages include accessibility for cannabis businesses. One of the main reasons cited has been the cannabis industry being deemed “essential,” thereby allowing it to provide much-needed support to various states’ economies.
While the details of a post-COVID-19 world remain to be seen, one thing is clear – cannabis will continue to play a growing and important role in the U.S. economy.
Sahar Ayinehsazian is an attorney in Vicente Sederberg‘s Los Angeles office, where she focuses on corporate transactions, cannabis banking, and regulations. With her specialized knowledge, Sahar helped to establish and currently co-leads Vicente Sederberg’s Banking and Financial Services Department. As a member of the National Cannabis Industry Association’s Banking Access Committee, Sahar also works on strategy and educational advocacy to enable state-licensed businesses to obtain accounts at depository institutions.
Kelsey Middleton is a Regulatory Specialist in Vicente Sederberg’s Los Angeles office, where she focuses on licensing and regulatory compliance. Kelsey is responsible for assisting a dynamic range of cannabis clients in obtaining state and local cannabis licenses, permits and approvals, and navigating the complex and rapidly evolving regulatory landscape of the cannabis industry. She routinely helps clients prepare the requisite applications and documentation for state and local licensing and permits, and facilitates communications with cannabis industry regulators to promote efficiency and compliance throughout the licensing process.
Prior to joining VS, Kelsey interned at the Los Angeles Department of Cannabis Regulation where she analyzed proposed cannabis legislation and approaches for enhancing the efficacy of cannabis social equity programs.
Kelsey obtained her Juris Doctor from the UCLA School of Law, where she was the Co-Founder and Co-President of the Cannabis Law Association, and External Relations Chair of the Black Law Students Association.
Webinar: NCIA Committee Insights – Cannabis Retail Success and Strategies
NCIA’s #IndustryEssentials webinars are our new weekly educational series featuring a variety of programs allowing us to provide you timely, engaging and essential education when you need it most.
The NCIA Committee Insights series showcases content produced in partnership with one of our 15 member-led committees.
According to a recent Gallup poll, 66% of Americans support the federal legalization of recreational marijuana and with that comes an ever-expanding retail footprint. This session is designed to address the unique challenges faced by cannabis retail leaders and entrepreneurs in planning their operations for success in a modern retail environment. The panel will take a look at Talent, Brand, and Compliance strategies with real-life case studies to help provide valuable take-aways for the implementation of a Retail 2.0 strategy.
Register now to join us on Monday, June 1 at 1:00 PM MT.
Ryan Rapaport
Managing Partner
Digital Venture Partners
Melissa Stapley
Founder
MJ Hybrid Solutions
Larina Scofield
Director of Operations
Lucy Sky Cannabis Boutique
Webinar: Policy Council Conversations: Just Say No – Keep the DEA out of Cannabis Research
NCIA’s #IndustryEssentials educational webinar series is our new digital platform featuring a variety of programs to provide you timely, engaging, and essential education when & where you need it most!
The Policy Council Conversations series features insights & invaluable content directly from members of NCIA’s Policy Council, the preeminent “Think Tank” for the cannabis industry.
The Drug Enforcement Administration recently issued a notice of proposed rulemaking on cannabis research. If adopted, this rule would fundamentally change how cannabis research is conducted. NCIA recently submitted public comments, rejecting the DEA’s power grab and strongly suggesting that a public health agency (i.e. Health and Human Services, National Institutes of Health, etc.) lead on cannabis research. Simultaneously, lawyers at Yetter Coleman filed a Freedom of Information Act lawsuit against DOJ, demanding the release of an OLC memo relied upon by DEA in their rulemaking. That successful suit was brought on behalf of Scottsdale Research Institute.
This panel will discuss the critical importance of cannabis research, the DEA rulemaking and NCIA’s numerous objections, and the lawsuit against DEA and the resulting disclosure of the DOJ policy memo.
Register now to join us on Wednesday, June 3 at 12:00 PM MT.
Jodi Avergun
Chair, White Collar and Criminal Defense and Investigations Group
Cadwalader, Wickersham & Taft LLP
&
Former Chief of Staff
Drug Enforcement Administration (DEA)
Andrew Kline
Director of Public Policy
National Cannabis Industry Association
Sue Sisley, MD
Principal Investigator
Scottsdale Research Institute
Matt Zorn
Associate
Yetter Coleman
Shane Pennington
Associate
Yetter Coleman
Member Blog: The Ever-Evolving Chief Human Capital/Human Resources Role
More than any other role in an organization, the role of the Chief Human Capital/Human Resources (CHC/HR) Officer has changed. It continues to do so as organizations grow and shift. Nothing could be more accurate in this current pandemic environment. Understanding the critical need for this role and the types of capabilities you should be looking for in a candidate will help prepare you for your search and ensure that you’re evaluating potential candidates based on the real needs so that when we enter into our new normal, your organization is prepped and set up for successand not trying to play catch up based on some missteps. We’ve curated a list of the qualifications and criteria below that your top tier candidates should possess to fill this critical leadership position.
Strategic mindset and business acumen: The CHC/HR Officer is expected to be discerning, future-orientated, open-minded, commercially astute, and able to make evidence-based decisions. They will develop robust people plans aligned to the business strategy. A people plan cannot merely serve internal HR functional requirements; it must demonstrate an impact on the business.
Change and transformation management: Play a leading role in defining and adapting corporate strategies, structures, procedures, and technologies to handle changes in external conditions and the business environment. The people side of change management is often the most important element above the technical tasks necessary to enact change. When the people side of change is poorly managed, change often fails or doesn’t achieve desirable results. Driving change management and transformation requires an organization to embrace learning agility and innovation as a culture. The CHC/HR Officer is often expected to embody this agility and be the catalyst for change and transformation.
Mastery of executive compensation: Issues of pay equality continue to gain prominence in the market, and this leader must play a key role in designing competitive, equitable compensation packages. This includes innovative and sometimes creative incentive structures to attract and retain key talent. The position is to continuously test internal pay structures against the market where potential gaps and risks are identified and develop risk mitigation plans.
A clear understanding of board governance: Cannabis organizations are increasingly scrutinizing executive compensation, examining linkages of talent and performance, focusing on CEO succession, and the broad talent agenda. The Chief HC/HR role can add value to the board by bringing expertise in compensation, succession, talent, and the people-based implications of mergers and acquisitions.
External focus: Today’s cannabis HC/HR Chief has to have a good sense of the external industry and the competitive landscape. She/he should keep abreast by playing an active role in relevant industry bodies. Talent is becoming increasingly mobile-savvy, which makes it all the more important for this leader to have a strategic mindset.
Shape culture: The head of HR holds a key role in defining and co-creating the organizational culture with the executive leadership team. A company’s organizational culture can make or break the most insightful strategy. The executive leadership team and the HC/HR Chief have a shared responsibility in creating and driving a culture that is aligned with the business strategy.
Committed to diversity and inclusion: For diversity and inclusion to be successful, it has to be a top-to-bottom business-critical mission that is embedded in all aspects of the organization. Diversity and inclusion practices should be led in close partnership with the CEO, with the HR Lead playing an important role in articulating the business case for diversity alongside the CEO.
Leadership gravitas: The ideal candidate must possess significant confidence and power supported by competence and an undisputed delivery track record. This power is acquired through strong interpersonal relationship skills, the ability to influence others, and being respected and admired. This type of power is particularly important in this role since it is built on collaboration and influence rather than command and control. In addition, HR leaders must have the ability to assess risk, to demonstrate independent thinking and speak truth to power, having the courage to say “No,” when necessary.
Balance agendas of high-level stakeholders: Your ideal candidate should have experience serving multiple high-level stakeholders such as the CEO, board, shareholders, and employees who often have competing demands. The capability to effortlessly navigate and balance the various needs through effective communication, seeking alignment, and managing expectations is a must.
Visible, value-added partner: The head of HR is a critical stakeholder in the health of the organization. It’s important that your hire has an open door policy and is proactive about building teamwork and company culture. They should be seen everywhere within the organization. HR leaders must be on the pulse of the organization at all times to make unpleasant surprises less likely to happen.
These ten key areas are all critical when hiring a CHC/HR leader for your organization. If you use this list as a checklist when you hire this critical role (or evaluating your current leadership) and find positive responses to all, you should have an excellent fit for your team!
Bryan Passman is a father, a husband, a trailblazer, and Co-founder and CEO of Hunter + Esquire. My professional background before launching H+E was entirely in retained executive search for 18 years in MedTech/Pharma (15 yrs) and Food and Adult Beverage CPG (3 yrs). My deep knowledge of those highly regulated and nuanced industries has helped H+E significantly understand the needs and wants of our cannabis clients. My deep and genuine networks within those industries have helped us deliver that rare talent “unicorn” our clients desire to fit their particular needs. My client-first approach helps us provide a very customized, white-glove, headhunter treatment to client and candidate.
SAFE Banking Provision of Federal Relief Package Approved in House, Faces Difficult Path in Senate
by Morgan Fox, NCIA’s Director of Media Relations
It’s been a busy week for NCIA in our nation’s capital as we try to make sure the industry can survive the pandemic and continue to develop and thrive once the country begins to focus on recovery.
Earlier this month, NCIA and a coalition of advocacy and industry groups sent a letter to Congress urging them to include the SAFE Banking Act in the next stimulus package. We worked diligently with allies and our champions in the House to this end, reminding lawmakers that this legislation was approved with an overwhelming bipartisan majority in a stand-alone bill last September and that the pandemic was creating even more need for cannabis businesses to be able to access banking services immediately.
Unfortunately, the partisan backlash to the Democrat-backed legislation was almost immediate, with some lawmakers opting to use this necessary and nearly revenue-neutral provision of the legislation as a punching bag and a symbol of overreach in the lower chamber. Republican lawmakers decried things as irrelevant as the number of times the word “cannabis” appeared in the language and claimed that this provision did not belong in a COVID-related bill. Senate Majority Leader Mitch McConnell even complained about a section of the bill that would study diversity in cannabis banking access and cost a practically infinitesimal percentage of this roughly $3 TRILLION stimulus bill.
This misdirected vitriol was thankfully not enough to block cannabis banking reform from moving forward. On Friday, the House approved the HEROES Act with the SAFE Banking language included!
The public health and safety benefits of allowing cannabis banking are undeniable. Our industry employs hundreds of thousands of Americans and has been deemed ‘essential’ in most states. Forcing the majority of them to deal almost entirely in cash puts workers at risk of infection from the cash they are handling. It makes the social distancing that is so important to getting this pandemic under control much more difficult and increases the danger for workers and consumers, particularly immunocompromised patients. The public safety concerns regarding cash being a target for crime will only grow as unemployment rates increase around the country.
The economic benefit to post-COVID recovery is clear as well. Lack of access to banking and other financial services will ensure that the cannabis industry – which has been exemplary in providing continuous healthcare, preserving jobs, and generating much-needed tax revenue during this disaster – recovers at a significantly slower pace than other industries. We deserve fair access to the financial systems utilized by every other legitimate industry.
Make no mistake: this is a big step forward for cannabis policy reform. But now comes the hard part – convincing the Senate to support this legislation. With or without cannabis banking language, all signs point to an uphill battle getting the Senate to consider any additional coronavirus relief spending. But that’s all the more reason to redouble our efforts, and support continues to grow. This week, a bipartisan group of 34 state attorneys general added their voices to the chorus calling for cannabis banking reform.
And with the chances for direct access to federal relief funding looking increasingly slim, it is absolutely vital that we do everything we can to push this legislation forward.
Please contact your senators today and ask them to support the HEROES Act with the House-approved cannabis banking provisions.
As the cannabis industry emerges from start-up to major economic player, the protection of intellectual property becomes all the more critical. This expert panel will discuss the options available to protect trademarks at the state and federal level, how to apply for and obtain a federal patent, and how to protect designations of origin (much like we protect Champagne or Bordeaux in France). The panelist will draw upon their professional expertise, as well as their practical experience in applying for and successfully receiving trademark and patent protections. A white paper summarizing the author’s recommendations will be released this summer by NCIA’s Policy Council.
Member Blog: The Importance of a True Human Capital Management Leader
Numerous cannabis organizations have taken advantage of the global health crisis to cut staff and combine positions. We saw the role of HR lead added (yet again!) to the job description of the CEO, CFO, or another officer. Unfortunately, we witnessed several companies perform these cuts and layoffs during the pandemic as a way of cleaning house. Without a strong HR foundation in place, many of these exits were messy and resulted in angry ex-employees and disgruntled employees who are preparing their resumes to manage their exits proactively. While this transition is always challenging, it doesn’t need to end with poor relationships with ex-employees. As we know, the world of cannabis is small, ensuring a good reputation is critical. As the overall and cannabis economy opens back up to our new normal, it is even more important than ever to ensure your organization has the vital piece of the puzzle in place.
The human resources profession in and out of cannabis has evolved in recent years, and with it, the role of the Chief Human Capital (or ‘Resources’) Officer has changed as well. It progressed from fighting for a seat at the table to playing a vital role in the executive team as a strategic partner to the CEO and CFO. The CEO, CFO, and Chief HC/HR Officer should be viewed as equally responsible for executing the business strategy, with distinct yet highly interdependent roles to play. In essence, the CEO defines &/or leads the vision/strategy; the Chief HC/HR Officer articulates and drives people’s DNA, while the CFO manages financial resources and investments. It takes people and financial resources to implement the business strategy, which is why the relationship between these leadership roles is so vital.
The role of the Chief HC/HR Officer is becoming increasingly complex. It is continuously changing due to a range of factors, including the evolution of technology, artificial intelligence, automation, the changing profile of the workforce, new ways of working, and the increased focus on talent, especially in the cannabis industry. The profile has shifted from a traditional HR professional, narrowly focused on his/her function to a well-rounded business leader who can contribute meaningfully in all areas of the business. Today’s HR Chief is a culture champion and change-agent who is commercially astute, analytical, and technologically savvy, who speaks truth to power and influences softly yet assertively.
Hiring and retaining the right talent.
Human Capital Management is essential for hiring, managing, training, and retaining talented and high performing employees. Employees are the most valuable resource in an organization. Individuals who spend the maximum part of their day contributing towards the success of an organization are its most crucial resource. Employees can either make or break an organization, truly making them an organization’s lifeline.
Making new employees feel comfortable/orienting them to the organization.
Human Capital management plays a vital role in orienting a new employee to the system. Boring and meaningless onboarding programs lead to confusion and eventual loss of employee interest. Most new hires develop very strong positive or negative vibes about their new employment within the first 24 hours in their new role; it’s a lot easier to enjoy the positive vibes from getting that first 24 hours right than dealing with the negative vibes from the start. Turnover can cost an organization 2.5 x the salary. Incorporating professional onboarding into your standard SOPs is critical for new hires who make a “stay” vs. go” decision within the first 24-48 hours in a new job. This includes not loading someone with unnecessary information on the very first day (s)he steps into the organization. Making him/her feel comfortable, which during a pandemic and isolation can be challenging. Clickherefor tips on creating a connection virtually. Such small initiatives go a long way!
Training employees
Employees need to stay current and continue to learn to prepare themselves for adverse conditions. Human Capital Management helps train employees and makes them a valuable resource for the organization. Employees who do not brush up on their skills from time to time find it difficult to survive in the long run. Human Capital Management helps develop the skills of employees, which creates a positive impact on the overall organization. Human Capital Management plays an essential role in increasing the knowledge, well-being, and efficiency of employees. Individuals are in a position to contribute more towards the system, eventually increasing the overall productivity of the organization. Take the steps now to add this essential team member to your roster.
A productive, thriving workforce is the most crucial component of a successful business. This requires viewing people as human assets, not costs to the organization. As with any other asset, a talented workforce can be used strategically to add value to an organization.
Bryan Passman is a father, a husband, a trailblazer, and Co-founder and CEO of Hunter + Esquire. My professional background before launching H+E was entirely in retained executive search for 18 years in MedTech/Pharma (15 yrs) and Food and Adult Beverage CPG (3 yrs). My deep knowledge of those highly regulated and nuanced industries has helped H+E significantly understand the needs and wants of our cannabis clients. My deep and genuine networks within those industries have helped us deliver that rare talent “unicorn” our clients desire to fit their particular needs. My client-first approach helps us provide a very customized, white-glove, headhunter treatment to client and candidate.
Meet The Team: Rachel Kurtz – NCIA’s Deputy Director of Public Policy
I grew up an Army brat. By 1992, when I was 18 years old, I had lived in Wisconsin, New York, Texas, Oklahoma, Indiana, Alabama, and Germany. I was fortunate my father served during a 23 year period where he would never be sent into a conflict, especially as a physical therapist. I reaped the benefits of experiencing various cultures and socialized medicine.
I started my cannabis activism in 1995 volunteering with the Washington Hemp Education Network in Olympia, WA, while attending The Evergreen State College. Following a stint in Congressman Brian Baird’s district office, I went to law school at the University of Washington School of Law, figuring that having a law degree would give me more respect while pushing for such a controversial issue. Serendipitously, during my 2L year, the King County Bar Association (where my school was located) started a Drug Policy Project, where I was fortunate to get a job after graduation. I worked there, and simultaneously for the Voluntary Committee of Lawyers, until around 2010 when my boss was running for his third term in the state legislature and I wanted to focus on more local issues around medical cannabis implementation.
I spent some time as an acting-executive director for the Cannabis Defense Coalition, advising businesses on the medical cannabis laws, and became a partner in a medical authorization clinic and wellness center. I was also volunteering with Seattle Hempfest — where I started in 2004 and have continued to commit my free time to this day, now as part of the board of directors.
After the legalization initiative passed in Washington state in 2012, I began using my law degree to represent businesses during the licensing process, working with Wykowski Law and Gleam Law. But billing clients was not for me, and circumstances in my life made me want to run a cannabis business.
It was 2016, and by then I had moved to Oregon where they had also passed a legalization initiative. With a partner who had previously had a successful medical cannabis business, spent a year forming the business and pitching it, only to fail to secure enough funding to continue in such an expensive endeavor.
I became disheartened in the whole process and the future for all small businesses trying to make it in the industry. I knew the only way to truly have a successful industry that worked for all stakeholders and citizens was to legalize at the federal level, and the main organization focused on that effort was NCIA.
On a whim, I looked at the NCIA website to see if they were hiring. Lo and behold, they had a business development position open and wanted someone located in the Pacific Northwest and connected in the industry. Business development wasn’t quite in my skill set, but we made it work and I have had a hand in multiple areas at the organization since I started January 2017. My biggest effort so far has been the creation and development of NCIA’s Allied Associations Program; it has been very satisfying bringing together cannabis trade associations from around the country.
I am now Deputy Director of Public Policy and feel so fortunate to work with the brilliant Andrew Kline and all the work that is coming out of the Policy Council. I continue to work with the Allied Associations Program, alongside Amy Rose, to keep my finger on the pulse of state policy, and I’m coordinating NCIA’s member committees and their content, along with Morgan Fox.
Moving forward, I’m feeling like probably most people, ranging from the anxiety of existential uncertainty to the optimism of knowing cannabis is considered essential in society and the endless possibilities as we all navigate this new normal. The creativity and tenacity of all my amazing colleagues at NCIA and our members leave me full of hope.
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John Shearman, Vice President of Marketing and Cannabis Business Lead at Applied DNA Sciences, has over 30 years of deep enterprise and advertising agency experience across all marketing, sales and IT disciplines. John’s experience allows him to advise on structuring sound strategies that address business goals and objectives. His extensive technology background stems from working with several leading technology companies throughout his career. John spearheads Applied DNA Sciences Cannabis vertical leading the vision, strategy, and product development for this emerging market. John also oversees the marketing for the entire company driving the marketing strategy for its other core verticals.
As the entire world continues to navigate through the devastating COVID-19 pandemic, it can sometimes be difficult to see the silver lining. A beloved public television figure known as Mister Rogers famously told the story of how his mother urged him while watching “scary things in the news,” to “…look for the helpers. You will always find people who are helping.” 
Andy Poticha is principal at 
Merril Gilbert, Co-Founder and CEO of 
David Vaillencourt, CEO of 
NCIA’s 
“In fact, if we were able to have the Veterans Administration (VA) embrace medical cannabis, veterans would get better care because they could deal directly with their primary care physician, who is in the best position to give them appropriate advice. But sadly, the VA is caught with this federal restriction and they have a very narrow interpretation of what they can do, and how they can do it, and they simply do not permit their physicians to work with veterans to discuss and work with — let alone prescribe — medical cannabis.”
Sahar Ayinehsazian is an attorney in Vicente Sederberg‘s Los Angeles office, where she focuses on corporate transactions, cannabis banking, and regulations. With her specialized knowledge, Sahar helped to establish and currently co-leads Vicente Sederberg’s Banking and Financial Services Department. As a member of the National Cannabis Industry Association’s Banking Access Committee, Sahar also works on strategy and educational advocacy to enable state-licensed businesses to obtain accounts at depository institutions.
Kelsey Middleton is a Regulatory Specialist in Vicente Sederberg’s Los Angeles office, where she focuses on licensing and regulatory compliance. Kelsey is responsible for assisting a dynamic range of cannabis clients in obtaining state and local cannabis licenses, permits and approvals, and navigating the complex and rapidly evolving regulatory landscape of the cannabis industry. She routinely helps clients prepare the requisite applications and documentation for state and local licensing and permits, and facilitates communications with cannabis industry regulators to promote efficiency and compliance throughout the licensing process.
Bryan Passman is a father, a husband, a trailblazer, and Co-founder and CEO of 
