Guest Post: Deal for Regulations Passes California Legislature
by Nate Bradley, Executive Director of California Cannabis Industry Association
We did it! After almost 20 years without statewide regulations, the California State Legislature has taken an important first step in creating a legal framework for medical cannabis. On September 11th at 11:47 pm, CCIA staff watched as the legislature sent a package of bills to the Governor’s office. Those bills – AB 266, AB 243, and SB 643 – combined to make the Medical Marijuana Regulation & Safety Act (MMRSA).
The MMRSA establishes the Bureau of Medical Marijuana Regulation under the Department of Consumer Affairs. The Department of Food and Agriculture has responsibility for regulating cultivation and processing, the Department of Public Health is tasked with developing standards for the manufacture, testing, and production and labeling of all cannabis products, and the Department of Pesticide Regulation oversees developing pesticide standards. For more information on what this legislation does, please check out CCIA’s “MMSRA Cheat Sheet” here.
We think it’s fair to say most CCIA members understand the need for regulation and are glad California has started the process. That said, we believe parts of the bills need fixing. We are eager to hear what you think. We will continue relying on feedback from our allies in the industry to help us develop follow-up legislation — and to take part in the rule-making process — to address these issues. That said, the clear message from our members has been: even strict regulation is better than no regulation at all.
Nate Bradley, cofounder of the California Cannabis Industry Association, an independent state affiliate of NCIA
We also hope this legislation will put California in compliance with the U.S. Department of Justice guidelines, which ought to end federal prosecution of lawful cannabis operators in California. The citizens of California spoke clearly when they voted for medical cannabis in 1996; their elected representatives have just spoken again. We hope the federal government will respect California’s clear desire to have a well-regulated medical cannabis industry.
Our expectation is that California will now be able to take its rightful place as the center of investment and innovation in the cannabis economy. Governor Brown and his colleagues in the legislature have just given the green light to let California’s cannabis industry become the thriving, tax-paying, job-creating industry it was always destined to become.
Nate Bradley, based in Sacramento, is the executive director and cofounder of the California Cannabis Industry Association (CCIA). He is responsible for CCIA’s public policy advocacy and political strategy in California’s State Capitol. Nate also has ten years of education and experience in law enforcement and is a speaker for Law Enforcement Against Prohibition (LEAP).
Member Spotlight: Triple C Cannabis Club
Returning from a very busy summer season, NCIA continues the tradition of featuring one of our members in a monthly member spotlight. For October, we chat with Brian Caldwell of Triple C Cannabis Club, based in Tacoma, Washington. Triple C is proud of their home state of Washington for being one of the first in the nation to recognize and respect the right of every adult to decide what is best for his or her health and happiness. As one of the first and most successful medicinal dispensaries in the state, Triple C continues to lead the way in the transition to adult-use by elevating the retail experience with award-winning selection, service and staff.
Cannabis Industry Sector:
Medical Cannabis Providers
NCIA Member Since:
2014
How do you uniquely serve the cannabis community?
Triple C Cannabis Club is completely dedicated to procuring safe, tested, and properly labeled medical-grade cannabis products for our patients. We take meeting the needs of our patients very seriously and refuse to compromise our standards. We are committed to only providing the very best to our patients. Additionally, we feel we must help be the voice for the patients we serve that otherwise could or would get lost in a bureaucratic system. Change, especially the legalizing of cannabis that has occurred in Washington State, has been quite intimidating. We are here to help and support our patients through this process while ensuring our state’s regulators have trusted professionals from our industry to work with.
Why should customers looking for medical cannabis go to Triple C Cannabis Club?
Patients who want to #ExperienceChronicWellness ® will find a wide selections of oils, edibles, salves, topicals and more at Triple C Cannabis Club. We pride ourselves on consistent medicinal product availability that has been rigorously tested and is produced by the state’s elite manufacturers. Triple C Cannabis Club staff is award-winning and very knowledgeable on a wide array of products and medicines. They ensure product safety and patient confidentiality and consistently perform to the highest standards of care. As the first union shop in Washington, I am proud to work with UFCW to advance the safety and wellbeing of all who come through our doors, regardless if they are a patient or staff.
Our business has evolved rapidly along with the changing legal landscape. As a result, people come to us for very different reasons. Many want to relieve pain and promote healing naturally. Others seek to ease stress, enhance experiences, or nurture creativity. The many wonders and benefits of cannabis are why it has been so beloved for most of recorded history.
Brian Caldwell, Triple C Cannabis Club
Can you give us some insight into the cannabis community in Washington, the challenges, upsides, and where you’d like to see it go?
As we have seen in other states, and in Washington’s past, the road to regulation of cannabis is a difficult one, but one that is desperately needed. The state has to balance federal jurisdictional issues, patients have fears due to years of persecution, and business owners are trying hard to be law-abiding, good corporate citizens. When Washington started the medical cannabis journey in 1998, we all shared the vision of a legal and safe environment for patients. However, with the veto offered by then-Governor Christine Gregoire, that was not the case. The laws have been interpreted in many different ways, hence the success of the black and grey markets. So here we are some twenty years later, trying to fix the regulations to create that safe marketplace we all had envisioned. I believe that if we work with state legislators on practical regulations and our congressional delegation on fixing taxation and banking, it will go a long way in bringing our industry into mainstream acceptance and small business success.
Why did you join NCIA?
I joined NCIA for numerous reasons, but first and foremost is their clear mission to advance the cannabis industry with a thoughtful and targeted approach. The leadership they are providing to our congressional delegation on matters such as banking and taxation is unmatched by any other groups. The cannabis industry needs a strong and professional voice to help solve these critical industry problems, which is exactly what NCIA has stepped up to do. The commitment that NCIA has to membership development, education, and networking is another reason why I chose to become a member. Triple C Cannabis Club supports the efforts of those that want to advance our industry in a positive and educated manner, and NCIA is a good reflection of those principles.
Brand loyalty is a major topic in any industry today and particularly in the cannabis industry. However, brand loyalty can be a tricky concept. What exactly does it mean? How is it achieved or measured? And what are the tangible effects of strong brand loyalty? I’d like to offer some insight into this last question because of how large the potential revenue is for brands with loyal followings.
My firm, Brightfield Group, researches the top brands in the cannabis industry and why consumers select them. What we found in our recent survey of medical cardholders was that brand loyalty is a significant driver in purchasing decisions.
Using the edibles market as an example, we found that 73% of consumers have a favorite brand. Once they find it, they’re extremely loyal, with 60% of these consumers choosing that brand at least 75% of the time.
“Brand loyalty is as important to the cannabis industry as any other and perhaps more because there are no long-established, dominant brands.”
That’s tremendously powerful when you break down the numbers. Take California’s edibles market for example. It is worth about $250 million right now and is projected to grow to $1.2 billion by 2019. If 60% of consumers buy their favorite brand 75% of the time, that’s $112 million that’s won by the power of brand loyalty in 2015. It would be $530 million in 2019, assuming the percentages remain the same. Now this is a very simplified example, but using it one can see the magnitude of the revenue involved when brands build a loyal following.
Then consider how fragmented this market currently is. Going back to our example, the top 10 edibles brands in California combined make up less than 25% of the total market. While this is typical of an industry at this stage in its lifecycle, what it means is that there is a lot of market share still to be captured. That’s about $187 million available for capture this year and almost $1 billion in 2019, again using the numbers above. And that’s just in California. This same story is being played out across other states and other categories such as concentrates or topicals, which are even more fragmented.
The implication for existing brands is that they should exploit their first mover advantage, expand their footprint and increase market share as fast as possible, because the next stage in the industry lifecycle is consolidation, where scale becomes essential. However, in this industry, expanding that footprint isn’t so easy with the current regulatory challenges. That said, some brands are starting to do it, such as Cheeba Chews and Bhang, which are both top 10 edibles brands in multiple states. But there’s a long way to go.
Brand loyalty is as important to the cannabis industry as any other and perhaps more because there are no long-established, dominant brands. The field is wide open, and although there are challenges to building that loyalty, the revenue potential is huge.
Patrick Hayden is the President of Brightfield Group, LLC. Patrick has worked in both market research and investment management for 15 years, most recently as Director of Investment Analysis for a large, private pharmacy benefits manager. Previously he was a consultant with a global research firm helping hedge funds leverage emerging markets data to boost investment returns. Prior to that, Patrick worked in an alternative investment firm where he was involved in numerous private placements raising over $100 million.
He has a Bachelor of Arts in Economics from the University of Iowa and his MBA from City University of New York.
Guest Post: Growing Pains in Michigan
(As with all Guest Posts on NCIA’s website, this post solely represents the views and opinions of its author and does not represent an NCIA endorsement or official position. ~ eds.)
by Matthew Abel, Cannabis Counsel P.L.C.
Michigan is poised for change, as it has been for years. Almost seven years of the Michigan Medical Marihuana Act (sponsored by MPP in 2008) has brought plenty of litigation, but no legal dispensaries. That seems likely to change in 2016, one way or another.
Matthew Abel speaks to the crowd at Hash Bash in Ann Arbor, MI
It is possible that the Michigan legislature, which has done nothing to improve the stalemate on dispensaries and the questionable legality of anything other than “dried leaves and flowers,” may finally move forward. The dispensary and extracts bills now are joined by a seed-to-sale tracking system. That finally may overcome the objections of those coddling law enforcement, who see enforcement having to move on to other things (like violations of the new regulations).
Multiple legalization petitions are afoot. One would set up a three-tiered system like the clumsy, expensive, and oligopolistic Michigan liquor control framework. It has taken years to allow brewpubs in this state. Even now, a small local brewery is prohibited from selling directly to retail outlets; everything must go through one of the few beer and wine wholesalers, who take a cut (of course). Even that, however, is not the worst part of the ballot initiative being circulated by the Michigan Cannabis Coalition. The worst part is that any violation of the law still would be a crime. Growing more plants than allowed (two flowering plants, or potentially four if the municipality allows it) would be a felony. Selling to anyone without a license would still be a felony.
The proposal I favor (and which I helped draft) is sponsored by MILegalize. Aside from allowing distribution directly from cultivator to retailer, the main benefit of this legalization proposal is that it no longer criminalizes marijuana except for providing to minors or for driving under the influence. As we move from prohibition to legalization, we need to remember that much of the benefit of legalization is the concept of generally removing marijuana from the illegal market, with the huge savings of lives and money which accompany the move to put cannabis distribution into the legal market.
MILegalize is the right form of legalization. It removes most criminal penalties for cannabis. Eliminating crime by design of our drug laws and treating it as a public health issue, rather than a criminal justice issue, is a healthy change. That is the best reason to support the model put forward by MILegalize, as opposed to the three-tiered system proposed by the Michigan Cannabis Coalition.
For those who need to see a direct economic benefit before considering financially supporting this initiative, don’t be shortsighted. Michigan has a population twice the size of Colorado. MILegalize has no residency requirement, no financial bars to entry, and no caps on size or number or growers, processors or retailers (that is left up to each municipality, who stand to recover 20% of the excise tax imposed at the retail level).
Marijuana legalization in the face of continued criminal punishment in not nearly as sweet. I cut my teeth as a criminal defense attorney, and have had the unfortunate opportunity to see, up close, the negative unintended consequences of a medical marijuana law which is far too restrictive and fails both in providing necessary products and access, while also failing to protect those who are intended to benefit from the law. We need to not continue to make the same mistakes in the progression toward full legalization.
As a person who wants to see government work for the people, we need to recognize that the law itself is most of the problem, and leaving criminal penalties in place only perpetuates the problem.
For more information on MILegalize or to make a contribution, visit www.milegalize.com.
Matthew Abel, Cannabis Counsel, PLC, based in Detroit, MI
Matthew Abel is Executive Director of Michigan NORML and Senior Partner of the Detroit law firm Cannabis Counsel, P.L.C. He has been a member of NCIA since July 2013. Mr. Abel has been a criminal defense lawyer with a special focus on marijuana cases for more than 20 years. Mr. Abel’s Detroit-based law office capably handles marijuana possession, trafficking and distribution cases throughout the state of Michigan. His marijuana-specific practice areas include smuggling issues on the U.S.-Canadian border, asset forfeiture that victimizes clients, and questionable drug testing procedures.
He is a lifetime member of the NORML Legal Committee and the National Association of Criminal Defense Lawyers, and a member of Criminal Defense Attorneys of Michigan, the National Lawyers Guild, Americans for Safe Access, and the legal committee of the ACLU of Michigan. He has lectured on Michigan Medical Marihuana Law for Oaksterdam University in Michigan, the Michigan Cannabis College, MedGrow Cannabis College, the Michigan Institute for Continuing Legal Education, the Cannabis Career Institute, and to bar associations throughout Michigan. Mr. Abel was Director of the Committee for a Safer Michigan, sponsor of an unsuccessful 2012 Michigan Constitutional Amendment Ballot Question Committee, to repeal marijuana prohibition in Michigan for adults 21 and over. www.repealtoday.org
Cannabis State Applications: Don’t Forget Your Security Plans
A United States marijuana production license from 1945
There are three things in business you should never do:
Be your own doctor
Be your own lawyer
Write your own State Cannabis Application
Having been involved in the cannabis industry the last few years, I have seen many businesses and entrepreneurs who have a strong desire to get into this industry. Some want to own cultivation centers and grow marijuana, others want to run a dispensary and sell the marijuana, and then there is another more ambitious group who wants to do both. I think this is great and I encourage all to get involved in this growing and ever-changing industry.
But before you buy your cannabis equipment and hire a staff, you will first need for your state to give you a license. In order to get this license, you will need to apply to the state for review and approval. Your application can range from 300 to 2,000 pages and will cover a wide range of operational programs, including a well-defined security plan.
The primary purpose of a cannabis security plan is to provide a safe and secure environment for your employees, patients and visitors. Your security plan will cover facility security, security surveillance, product security, and policies & procedures.
Just like a doctor who specializes in a disease or a lawyer who only deals in certain types of the law, you want to make sure the person or company
who writes your application has written previous cannabis state applications. This is not the time to give a lawyer or accountant friend, ex-DEA agent, or a retired police chief the chance to learn how to write a cannabis application. Remember, you may only get one chance at a cannabis license and the state regulatory agencies are not very forgiving when it comes to incomplete or poorly written cannabis applications.
So make sure your cannabis application is the best it can be and look for a professional who specializes in this type of application writing.
I wish you the best of luck in this new and exciting industry.
Watch this YouTube video of Tony Gallo from Sapphire Protection speaking about security at CannaStock on September 26, 2014.
Tony Gallo is the Senior Director of Sapphire Protection (www.sapphireprotection.com) with over 30 years in the Loss Prevention, Audit, Safety, and Risk/Emergency Management fields. Tony has a Bachelor of Science degree in Criminal Justice from New Jersey City University and is a member of Americans for Safe Access and National Cannabis Industry Association. Tony is considered one of the leading authorities in cannabis and financial loan service, retail loss prevention, and security. Contact Tony at tony@sapphireprotection.com and follow him on Twitter at @SapphireProtect.
Guest Post: Favorable IRS Ruling – State Excise Tax May Escape 280E Treatment
by Luigi Zamarra, CPA
On July 31, 2015, the IRS released ILM 201531016, concluding that the old Washington State cannabis excise tax may be properly treated as a reduction of gross revenues received. This is a very favorable ruling for our industry as it means that this tax can escape the harsh non-deductibility treatment of IRC Section 280E.
Although this ruling is applicable directly only to old Washington law, it may have far-reaching consequences for cannabis businesses operating in other jurisdictions that also impose special taxes on cannabis business activities.
As originally enacted, the Washington excise tax is imposed upon all sales of cannabis, at either the producer level, the processor level, or the retail level. As written, the tax is imposed upon each sale. (This law has now been amended so that the tax is imposed only at the retail level.)
The IRS has concluded that businesses may treat this tax as a reduction of Gross Revenues. This treatment is similar to “Returns & Allowances” in that it is a “Revenue Contra Account.” As such, it is not an expense, either above-the-line (Cost of Goods Sold) or below-the-line. Since it may be treated as a reduction of Gross Revenues rather than as an expense, it should escape treatment as non-deductible under IRC Section 280E.
Colorado also imposes a variety of special taxes upon cannabis sales. In California, local cities and counties impose special taxes on cannabis sales too. Although it is not yet clear, it seems there may be opportunities for businesses in these jurisdictions to take advantage of this ruling. This would involve these businesses changing their accounting treatment for these taxes: away from an expense or Cost of Goods Sold treatment and toward a Revenue Contra Account treatment.
Businesses are advised to consult with their CPA for a more in-depth analysis of the application of this ruling to their particular situation.
Luigi Zamarra, CPA
Luigi Zamarra, CPA, has been a member of NCIA since 2013. Luigi CPA is an accounting firm located in Oakland, CA, that helps all types of businesses and individuals with tax planning, tax compliance, and tax dispute services. Luigi specializes in the medical marijuana industry. He helps these businesses comply with IRC Section 280E so as to balance tax cost against audit examination risk.
*Disclaimer: NCIA does not provide legal or financial services or advice. Any views or opinions presented in this guest blog post are solely those of the author and do not necessarily represent those of the organization. You must not rely on the legal information on our website as an alternative to legal or financial advice from your lawyer or other professional services provider.
Guest Post: Redefining the Business Battlefield – The Case for Boutique Cannabis
Cannabis sits on display in SPARC, a boutique cannabis shop in San Francisco, CA.
Across all industry verticals, customers are seeking more authentic and personal transactions. Company leaders are being forced to choose between scale and service, and the consumer market is starting to view this dichotomy as “good and evil.” There is a better way… and the cannabis industry must define it!
Most people understand the cannabis industry is positioned at one of the most integral crossroads in business history. Unlike any previous industry, the cannabis “vertical” was already a well-established culture, having existed for thousands of years in various forms. Cannabis as food, medicine, enlightenment, and recreation were cornerstones in social contexts across the world. As a regulated industry has emerged and grown, a battlefield is taking shape, and it is my belief that the victor in this confrontation will set the tone for the entire business environment – not just cannabis – for the next century. The first waves of the clash have washed over Colorado and Washington, but it is early yet and no edge has been gained on either side. Will the influence of the culture developed over millennia be strong enough to defeat the dogmas and principles developed in big business over the past couple of centuries? Will selfish pillaging be the business modality of the future?
It is arguable that momentum is generally on the side of the culture. This can be seen in the bestseller list when both Ask and David and Goliath were in the top three of the list at the same time. The proliferation of farm-to-table eateries across America is also indicative, and finally, even Chiquita Bananas has entered the market of ‘authentic personality’ by attaching the real life stories of their farmers in other countries to their individual banana stickers. Many big industry players across the globe are realizing consumers want more than a transaction when they make purchases. Clearly, the expansive cannabis culture can’t be pigeonholed, but if we take a few core elements, we can define that zeitgeist as close, personal interactions, conscientious consumption (think wise use of resources) and unique experiences designed for purposeful feeling.
If momentum is on our side, why is a war going to be fought? Dollars. Billions of dollars are up for grabs; all kinds will show up, and those for the old regime will fight to defend their fortunes, their power, and their belief structure. Ruthless capitalism has been successful in the past, congregating vast resources into small fractional groups in every major industry on earth.
With past success comes future repetition,
and that is where the nascent cannabis economy has an enormous responsibility.
It is our collective duty to ensure this industry is built correctly from the ground up. Having a smattering of B-Corps speckled about the vertical is not acceptable. Showcasing a signature brand doing things correctly is more indicative of our failure than it is our success. This is the opportunity to merge culture and business, to define not only how this industry will operate and cater, but deliver a blueprint for industries not yet imagined.
It is our challenge to redefine boutique and small,
where they are not describing size and scale,
but rather perspective and action.
It is our opportunity to redefine scale, not as consumption of resources, but by the growth and breadth of a culture. We can build a model where operating boutique can not only provide opportunity for vast financial wealth, but can also be a better, easier means of doing so. We must demonstrate that this model is so much more successful, even in traditional business terms, that future industries no longer see the old system as a viable option. Thousands of years of human culture has passed us this torch, and people centuries ahead count on us.
We must perform.
Travis Howard, General Manager & Founder at Shift Cannabis Co.
Travis Howard is General Manager and Co-Founder of Shift Cannabis Co., a boutique consulting firm focusing on boutique cannabis cultivation and retailing. Shift Cannabis Co. has been a member of NCIA since April 2014. Travis splits his time between corporate management practices and the legal areas of dynamic entrepreneurial industries. He holds a Juris Doctorate from the University of Colorado School of Law and a Bachelor of Science in Business Administration from Colorado State University.
His cannabis industry experience started in 2009 with KindReviews.com and progressed with owning and operating a Boulder dispensary and multiple cultivation centers. He has been consulting to the national industry since 2010, having lectured in multiple states for CannaBusiness Media and the National Cannabis Industry Association. He is currently mentoring the first class of students at Canopy Boulder and thoroughly enjoys sharing his experiences in cannabis.
While he enjoys the cannabis industry, Mr. Howard has a broad business background encompassing specialties in computer information systems, project operations control, and public speaking platforms. In addition, Mr. Howard’s diverse portfolio of professional experiences includes System Administrator roles, Office Director positions, CEO titles, and Board of Directors membership.
Guest Post: Regulating Marijuana – What Direction for FDA?
The Food and Drug Administration (FDA) has learned the hard way, over decades, that there is a moving ‘thin blue line’ for it to take legal action. On one side, the last thing FDA wants is to see thousands of seriously ill people demonstrating at the gates, as happened during the AIDS crisis when FDA stood between horrendously ill and dying patients and potentially life-saving drugs. FDA has become a much more savvy political organization since then and knows that any action it takes is always subject to second guessing by the courts, by Congress, and by political pundits on all sides. On the other side, FDA must act when there is clear evidence of people being harmed by products that fall within its jurisdiction.
There is no question that marijuana, whether in smokable, edible, or any other form, creates drug-like effects in people and animals. This medical fact is acknowledged by everyone and everyone admits that FDA could have jurisdiction to act, if it chooses to act. So why hasn’t FDA acted, and can we read the tea-leaves to foresee when it will act, and how it will act?
The key issue for FDA is always safety to people and especially ‘at risk’ patients such as children, people who might mistakenly take cannabis, or people who are medically compromised. Since no one can smoke cannabis by mistake, and FDA physicians can assure themselves that smoking cannabis has remarkably few toxicity issues, the only remaining safety concern is ingestion. Since it is possible to keep ingesting cannabis-containing food materials until a person reaches levels of medical concern, the question moves to: let’s take a look at the data.
Steve Goldner, Regulatory Affairs Associates
While there may be some overdosed patients who have not been reported into the hospital reporting networks, we do have a couple of years with consumers and consumables in Colorado and Washington State. While there have been some reports of regrettable overdoses that created harm, in general, epidemiologists are surprised by the remarkable absence of medical problems. Frankly, we were expecting significant reports of mortality and morbidity, and the reports are nowhere near the level of concern that FDA sees in field reports when action is necessary to save lives. Certainly there have been isolated problems, but far less than were expected and the trend seems to be towards better labeling, better quality control, and better information at point-of-sale.
So if past action was not necessary by FDA, and current action doesn’t appear necessary, what about future action? Does it look like the marijuana movement is working towards higher standards, more scientific analysis, and greater transparency with medical and scientific collaboration? Or is this movement trying to hide problems and deny that critical self-examination issues need to be addressed?
Clearly the industry is making itself safer on a weekly basis through self-regulation and multiple state regulations. Can we do better? Absolutely! So what are the primary opportunities to make huge leaps forward toward better service and better products for our patients and customers?
We suggest these are the top 5 for you to consider. See if you can answer YES to each of these:
Do I use a test lab regularly, with suitable sampling, and have they performed ‘FDA validation’ for their analysis procedures so I know they are giving true values?
Is the cannabis product produced regularly in the same way so that the product is predictable and do I follow Good Agricultural Practices (GAP)?
Am I always honest about having safe and clean product for my customers?
Do I know all the state rules and regulations and am I and my workers following them in all parts of my operations?
Have I protected myself and my workers from adverse working conditions?
If you can say YES to all 5, then give yourself a hand, and keep looking ahead, so you can stay ahead.
Steve Goldner was Supervisor Forensic Toxicologist at Office of the Chief Medical Examiner, New York City while working on the team that developed the first commercial laboratory chromatography tests for drugs, which helped launch the drug screening industry in the 1970s. He then formulated the drug methadone with his mentor John Broich from Brookhaven Labs., got FDA approval and managed the drug company for several years. After earning his law degree at Quinnipiac University Law School and practicing law in Connecticut, he specialized in gaining FDA approval for new medical technologies, foods, drugs and medical devices. His consulting firm, Regulatory Affairs Associates, became members of NCIA in June 2015, and has helped get over 240 products approved by FDA which launched many new companies. He also has served as FDA Expert Consultant to the National Institutes of Health and advises testing labs, food and drug companies on FDA, State and International compliance.
Guest Post: THC – The Illusion of Its Value
by Rowshan Reordan, Green Leaf Lab
“Don’t judge a book by its cover.”
Or perhaps more appropriate for today, “Don’t judge all cannabis products by THC percentage.”
As the cannabis industry continues to develop, we will see more medical and recreational marijuana states require testing on cannabis and cannabis products. This means that potency, and THC percentages, are readily available for patients and consumers. As many know, the trend is to obtain cannabis products with the highest THC potency. But is this really the best product? Is this really the best choice for the consumer? Is a single THC percentage even accurate? In answering these questions we shall look specifically to the regulated industries of alcohol and analytical testing.
The alcohol industry requires that all alcohol products be tested for potency, which is called alcohol content. While alcohol content is required to be posted on labels, how often does alcohol percentage affect your drink selection? When a friend offers you a beer they may ask you if you want an IPA, Kolsch, Ale or Stout. Or, when you are shopping for wine you may think about whether you want a Merlot, Chardonnay, Zinfandel, Rose, or Pinot Noir. Rarely is alcohol percentage the deciding factor. No one asks whether the beverage has 4%, 13% or even 95% alcohol content. If that was the case malt liquor and Ever Clear would be the alcohol of choice. Instead, what we see is that enthusiasts look for a wide variety of qualities other than just potency. The same should be said for cannabis.
Traditionally, the choosing of cannabis depended on its appearance, scents, and flavors. Selection was a holistic process. Potency still played an important role, but it was only qualifiable, not quantifiable. No one knew what THC percentage was. They just knew how they felt after consuming their favorite cannabis product. With the new industry of laboratory-tested cannabis, many cannabis consumers are no longer relying upon scents, flavors, and appearances. They are choosing their cannabis based on a very specific number, and sadly, an extremely unreliable number.
There are multiple factors that affect a THC value.
First, a specific THC value is only a representation of the exact sample that was provided, not of every bud produced in the batch. This occurs because marijuana potency naturally has variation. This variance occurs in buds on the same plant, as well as in different plants of the same strain throughout the garden.
Another variable that affects the final THC value is the margin of error, also known as standard deviation, of the testing method. A margin of error is the window in which data falls within a range and is still considered valid. In the analytical testing industry this is represented in a plus or minus value. In analytics, a margin of error may have up to +30% and still be representative. This means that one laboratory can test THC around 18% and another one could test it around 24% and both could be considered valid numbers.
A third factor that may affect the final THC value is the sample matrix. A sample matrix is a type of cannabis product as well as any ingredients that may have been added to it. The sample matrix can make the cannabinoids, such as THC, harder to extract and analyze accurately.
This compounding of errors contributes to the inaccuracy of placing such value on a single number. Focusing on a specific THC value alone is not only scientifically inconsistent, but it also diminishes the total value of the cannabis plant.
The regulation of cannabis testing labs may not resolve all these issues. While regulating cannabis testing laboratories is necessary and important in controlling testing methods, the other, and more important issue, is acknowledging that the THC percentage has been overvalued and oversimplified. The attention on THC and not the appearance, flavor or scent of cannabis or its effects can hardly describe the true cannabis connoisseur’s experience.
What happened to the marijuana that everyone used to love and brag about? It would have tested around 8% or even 12% THC. Why is everyone racing for higher numbers instead of better quality? I would much rather have a quality, locally produced home brew that is brimming with flavors and subtle undertones than a shot of Everclear.
For further analysis on ways in which we can start having an in-depth conversation about the value of cannabis and not THC potency alone, please read our upcoming article in DOPE Magazine’s August edition.
Rowshawn Reordan, Green Leaf Labs
Rowshan Reordan is the founder of Green Leaf Lab, Oregon’s largest cannabis analytical laboratory, one of the first cannabis analytical laboratories to open in the nation, and members of NCIA since February 2014. Ms. Reordan received her law license in the State of Oregon in 2006 and practiced law in Southern Oregon. After opening Green Leaf Lab’s flagship location in Portland, she became more involved with legislative efforts to ensure legitimacy in cannabis safety testing. Ms. Reordan was on the subcommittee for testing for Oregon’s Medical Marijuana Law and was recently invited to be on the subcommittee for testing for Oregon’s recreational marijuana program. Ms. Reordan has presented at a variety of educational seminars and conferences. She recently worked in conjunction with the Oregonian and the University of Oregon in educating and discussing the proper direction of legislative efforts concerning Oregon’s cannabis industry.
Guest Post: The ABC’s of CBD Claims
by Shawn Hauser, Vicente Sederberg
As we learn more about the cannabis plant and its potential uses and benefits, Cannabidiol, or “CBD,” continues to emerge as one of the most beneficial, and non-intoxicating, parts of the plant. Although there is significant research on the safety and efficacy of CBD, and some forms of CBD derived from hemp are arguably not regulated under the federal Controlled Substances Act (CSA), the Drug Enforcement Administration still considers CBD a marijuana derivative and Schedule I drug that is being illegally marketed in violation of the CSA and the Federal Food, Drug, and Cosmetic Act (FDCA).
In addition to food and drugs, nutrients and other supplements are regulated by the Food and Drug Administration (FDA) under the FDCA. The purpose of the FDCA is to forbid “the movement in interstate commerce of adulterated and misbranded food, drugs, devices, and cosmetics.” Disregarding the legality of CBD product sales under the CSA, any company contemplating the sale of such products should consider whether the products can be lawfully sold under the FDCA. Any product intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease is classified by the FDA as a drug, regardless of the product’s form or how it is marketed or labeled. Drug approval requires an extensive process involving collecting and submitting for review clinical and non-clinical data about the proposed use of the drug. While FDA has not yet attempted to regulate marijuana products sold in licensed marijuana establishments, the proliferation of states legalizing CBD for medical purposes and legalizing the cultivation and sale of hemp products has complicated the legal landscape. As CBD products move out of marijuana establishments and into retail and internet stores, they are catching the FDA’s eye.
In February 2015, the FDA sent letters to companies marketing CBD products stating that the companies were violating the FDCA by making therapeutic claims about the products, which are not approved as “drugs” under the FDCA. The FDA also recently confirmed that CBD cannot be marketed as a dietary supplement, stating that “Based on available evidence, FDA has concluded that cannabidiol products are excluded from the dietary supplement definition under section 201(ff)(3)(B)(ii) of the FD&C Act. Under that provision, if a substance has been authorized for investigation as a new drug for which substantial clinical investigations have been instituted and the existence of such investigations has been made public, then products containing that substance are outside the definition of a dietary supplement. There is an exception if the substance was ‘marketed as’ a dietary supplement or as a conventional food before the new drug investigations were authorized; however, based on available evidence, FDA has concluded that this is not the case for cannabidiol.”
In marketing products, the FDA classifies products based on intended use. Any website selling the product or providing references to sites where the product is sold will likely be examined for content by the FDA in determining the product’s intended use. Evidence of intended use includes claims on labels and literature, the citation of publications related to the product, and claims made on any forum where a consumer may see the product. Products may be considered “drugs” if claims are made related to the product’s use for the cure, mitigation, treatment, or prevention of diseases. Evidence of such claims may include therapeutic claims, claims that the product possesses certain medical properties, or the commercial use of scientific publications to promote the product’s sale. Even simple references to scientific studies or general research, such as “cannabinoids are emerging as an effective treatment for infections,” may be considered evidence that the product is a drug.
Shawn Hauser, Esq. of Vicente Sederberg
To further complicate matters, CBD has been granted orphan drug status by the FDA for treatment of Dravet’s Syndrome and Lennox-Gastaut Syndrome. However, the FDA has acknowledged the mixed signals sent by the present controlled substance classification of cannabis, and of CBD specifically, and has publicly supported research regarding CBD’s potential medical uses in testimony before the House Subcommittee on Government Operations.
Prior to marketing CBD products, companies should consult with an attorney who specializes in FDA compliance. This due diligence can not only ensure compliance and prevent action by the FDA, but may also promote the business’s reputation as one that is professional, thorough, and trustworthy. The FDA is less likely to target medical marijuana companies that a) avoid engaging in interstate commerce and only sell products within states that have legalized medical marijuana, and b) do not make claims about the proven efficacy of CBD products. As cannabis and CBD products proliferate, recent FDA activity indicates that the FDA is monitoring retailers and manufacturers of these products and will continue to do so going forward.
Nothing herein is intended to create an attorney client relationship. This article is for educational purposes only and shall not be considered legal advice. Please consult the appropriate legal professional prior to relying on anything mentioned herein.
Shawn Hauser, Esq., is the senior associate at Vicente Sederberg, Sustaining Members of NCIA. Shawn has been working in marijuana and law in policy for almost 7 years, starting with internships in marijuana law while she was studying at the University of Denver Sturm College of Law, where she chaired the school’s chapter of NORML. Prior to joining Vicente Sederberg LLC, Shawn worked at a small law firm specializing in marijuana law, criminal defense and family law. Shawn is the director of the “Local Implementation Project” for the non-profit Sensible Colorado Action, where she works with local governments across the state to pass marijuana laws that foster responsible businesses. Shawn also serves on the board of National Hemp Association, a Denver-based organization dedicated to the re-birth of industrial hemp in America. Shawn came to Denver in 2008 from Austin, Texas, where she fostered her love for live music, while studying psychology at the University of Texas at Austin.
Guest Post: Marijuana Millions – The Road Map to Your Success, Part 2
How writing effective mission & vision statements can strengthen your cannabis brand
In order to ensure that your cannabusiness is successful both now and into the future, you will want to organize your business goals and objectives with a mission and vision statement. Essentially these two different statements form the foundation for your brand and business and will ensure that you stay aligned with your values and goals moving forward.
Each of these statements accomplishes a different objective but they are easily confused with each other. A mission statement describes what a company wants to do now while a vision statement outlines the company’s future goals.
What is a mission statement?
A mission statement focuses on the present and helps you define exactly what your customers expect from you while giving you clarity about the level of performance you need to be successful. It is the statement that brings your brand’s promise to life.
Your mission statement should clarify the purpose and values of your business as well as the responsibility your business has to your customers. Additionally, it should help you continue to define your Unique Selling Proposition by asking, “What do we do as a company and what makes us unique?”
Your mission statement is an important cornerstone of your brand for your employees as well. It helps you create a strategic plan that provides your employees with a clear guide on what they should do and how they should do it.
A mission statement should answer the following questions:
What do we do today?
For whom do we do it?
What is the benefit our product or service can provide to our customers?
What is a vision statement?
While the mission statement focuses on the present, the vision statement focuses on the future and should become a source of inspiration and motivation for you and your employees.
Your vision statement should be big and lofty and paint a clear picture of your organization and why it exists. In addition to describing the future of your business, your vision statement should also describe the industry that your company hopes to influence.
As you can imagine, a vision statement is incredibly important for the new and rapidly evolving cannabis industry.
A vision statement should answer the following questions:
What do we want to do going forward?
When do we want to do it?
How do we want to do it?
Where to start:
For startups such as new cannabusinesses, it is common for a vision statement to be created first as it may help guide the mission statement and the rest of your strategic road map.
For businesses that have been around for a while where the mission is clear, the mission statement may come first as it can help define the vision and the goals for the future.
Taking time to create a solid foundation for your business such as your Unique Selling Proposition as well as your mission and vision statements will help you create success in your cannabusiness and put you on the path to marijuana millions.
Alexa Divett is the Co-Founder and Marketing Director of Maya Media Collective (http://www.mayamc.com), a Portland, Oregon-based marketing and design firm that provides brand identity packages, marketing strategies and business coaching to marijuana business owners and entrepreneurs. Maya Media Collective has been a member of NCIA since January 2014. With over 14 years of experience in marketing, public relations and coaching, Alexa helps cannabusiness owners earn marijuana millions while uplifting the cannabis industry.
Guest Post: Marijuana Millions – The Road Map to Your Success, Part 1
At Maya Media Collective, we believe that the key to marijuana millions begins with knowing who you are and why you are unique, and then using this discovery to build your company’s brand and overall strategy for success.
The first step is to define your Unique Selling Proposition.
Your Unique Selling Proposition (USP) is a marketing concept that is the foundation of your business and your brand. If the word “selling” turns you off, you can think of it as your Unique Market Proposition, or to make it more fun, your Unique Awesomeness.
Regardless of what you call it, it is imperative that you define it early on in your business.
Think of your USP as your reason for being.
Your USP is literally that which you propose to sell to your market that is unique from your competition. From the customer’s perspective it is the answer to the question, “Why should I do business with you?”
The USP should always come before your elevator speech and before your branding.
In fact, it is the driving force behind your branding, your niche, and your elevator speech.
Deciding on a USP Is One of the Most Important Decisions You Can Make About Your Business.
If you make your business stand apart from the crowd, everything you do will be easier. Customers will be easier to come by and they will happily spread the word about what you do because they love it.
On the other hand, if you don’t develop an effective USP, building an audience or getting any customers to pay attention to you will be a constant struggle.
How to Find Your Unique Selling Proposition
In order to find your USP, you must be willing to tap into your creativity and passions.
However, all the soul-searching in the world will not help you find your USP if you’re not willing to put your ideal customer first. At the end of the day, your USP is all about your ideal customer, and not about you at all.
In order to do this correctly, you must be willing to get out of your own way, start thinking about your perfect customer, and learn everything you can about him or her so you can target your approach to meet his or her needs.
Imagine your perfect customer and what would make them eager and excited to do business with you and spend their hard-earned dollars on your products and services.
Speaking of your products…
If you are a grower or processor in any of the western states such as Oregon, amazing products are NOT a USP. States like Oregon, Washington, California, and Colorado have had medical programs and access to seriously strong “high-grade” medicine for over a decade.
In places such as these, having the best product isn’t unique, it’s MANDATORY. Honestly, if you have anything less than the best, your business won’t make it through its first week of operation.
Remember, competition is fierce and you need more than the best product to be unique.
Instead of banking on your amazing product as your ticket to marijuana millions, think of becoming the best at something no one else is attempting.
You want to be able to confidently say, “Hey, at XYZ Company we’re all about X. We do things differently. If you’re into X come see us, we’re the only place where you can get it.”
Remember, You’re Not Trying To Appeal to Everyone
It’s easy to feel like you’ll be leaving out some potential customers when you start to narrowly define your USP. It’s a natural tendency to want to please everyone. Unfortunately in business when you try to please everyone, you generally wind up pleasing no one. When you connect more strongly with a particular audience, your influence can spread more quickly.
Be Unique, But Not For Its Own Sake
Being unique is an important marketing strategy, but beware of being unique for its own sake. Avoid the urge to come up with some catchy and unique just because it seems cool rather than because it’s something that the market truly wants.
Your USP only works when you’re addressing a specific market need. And it requires clarity. If your USP takes someone minutes or hours to understand, it probably won’t be effective.
Once You Have Developed Your USP…
Your job is to communicate it clearly and often.
A great business name, strong tagline, and professional design will bind everything together and put you on the path to marijuana millions.
Alexa Divett is the Co-Founder and Marketing Director of Maya Media Collective (http://www.mayamc.com), a Portland, Oregon-based marketing and design firm that provides brand identity packages, marketing strategies and business coaching to marijuana business owners and entrepreneurs. Maya Media Collective has been a member of NCIA since January 2014. With over 14 years of experience in marketing, public relations and coaching, Alexa helps cannabusiness owners earn marijuana millions while uplifting the cannabis industry.
Guest Post: Top 6 Reasons to Hire a Dedicated Cannabis Marketing Agency for Your Business
In this new and competitive multi-million dollar industry, the benefits of hiring a full-service cannabis marketing agency are many. Here are a few of the highlights that translate into higher performance and better visibility for your cannabis business.
The People
1. Time Is Money
It’s a numbers game, and the numbers work in your favor. A single marketing person in-house will have a longer turnaround time than a dedicated team from a top cannabis marketing agency sharing the work. Instead of hiring your own staff, contracting with an agency to communicate with a single member of your team makes it possible for all marketing to be completed swiftly and cohesively. If you have a marketing director, he or she can work directly with the agency to direct services such as event marketing or custom design work to further enhance your business.
2. Resourceful Talent and Talented Resources
With a full-service cannabis agency, you are able to choose the services tailored to your needs. You avoid the hassle of piecing together services from different providers, hoping they will all be on the same page to meet your vision. A dedicated agency will have a team of talented people at your disposal. Their diverse skill-sets will assist you with strategy, design, market research, search-engine optimization (SEO), social media, and more. If you’re looking to re-brand your business or simply want a print advertisement for Culture Magazine, the agency’s mission is to increase your return on investment and help your bottom line, and they will use their considerable resources to do it.
The Market
3. A Personal Ambassador for Media Buying and Cannabis Publications
A cannabis marketing agency worthy of its designation has invested in building relationships with both cannabis-specific and traditional trade publications. As such, they possess the ability to negotiate with sales representatives at various publications and leverage your media advertising buys. A dedicated marketing agency also has access to all of the latest publications’ media kits. By studying these, they can prime your marketing strategy and provide upcoming editorial and advertising trend forecasts.
4. The Power of Connection
A cannabis-savvy marketing agency has spent time and resources networking with journalists proficient in the industry, and thus they know which journalists can best pitch your brand and convey your specific message. By virtue of the constant networking involved, a cannabis marketing agency is also highly in-tune with consumer trends, and you reap the benefits of these connections.
The Laws
5. Dedication to Their Bread and Butter
By necessity, the cannabis-specific marketing agency possesses a thorough understanding of this unique marketplace. They are plugged into the wider community and are aware of current news and events, maximizing their ability to promote your brand at any given opportunity. As a member of the cannabis industry, the marketing agency is invested in the image, longevity, and future of the marketplace, and they will be highly motivated to portray your brand in the best possible light. If they’re committed to serving the cannabis industry, they should be members of the National Cannabis Industry Association (NCIA), the only industry-led organization created to serve and protect the interests of those in the business. Through banding together with other like-minded businesses, your cannabis marketing agency can be a powerful ally, helping to fund education and PR campaigns to evolve the image of cannabis-related industries and to promote friendlier laws.
6. The Law and Lay of the Land
Regulations and laws regarding cannabis are constantly changing, and it’s imperative to work with a marketing agency fluent in the ever-changing landscape of marijuana legalese. Marketing, advertising, and packaging all have their rules (for instance, marijuana edible packaging) and ignorance is no defense in the eyes of the law. A truly knowledgeable and dedicated cannabis marketing agency can be your trusted guide through the minefield of political and legal jargon and help you stay in compliance with the most current laws.
Studio 420 became a Sponsoring Member of NCIA in April 2015, and is a leading Denver-based digital marketing agency specializing in promoting high-profile marijuana retailers, dispensaries and cannabis-related products. They have experience in providing company and product branding services, website design and development, e-commerce and online shopping, as well as digital marketing strategies.
Survey: Work and Well-Being in the Cannabis Industry – Participate by May 31
We need your help!
Researchers at Colorado State University are seeking participants in a confidential survey about work and well-being in the cannabis industry. If you work at a direct-to-plant organization in Colorado, you are eligible to participate! (e.g., budtenders, managers, grow facility workers, cannabinoid extractions, edibles manufacturing, etc.). All who participate will receive a $20 Amazon gift card as a ‘thank you’ for your time and efforts. The survey is completely confidential, and the results of the survey will be used to develop reports and training recommendations for the industry. Click below if you’d like to participate!
The researchers need as many responses as possible by May 31st, so please share this with anyone you know who is eligible to take the survey! This could be co-workers, friends, supervisors, subordinates, etc. Even if you’ve already completed our survey or if you aren’t eligible to take the survey, please share this information with people who might be.
NOTE: While we recognize the importance of health, safety, and well-being on a global scale (i.e., among industries and workers in other states and countries), we are focused only on Colorado in this study in order to have confidence in how we interpret the data – if we included other states and industries, there would be too much “noise” in the data to really know what we were seeing, given that this study is the first of its kind. Ideally, we will be able to conduct future projects that can examine and answer these questions in other industries as well.
Member Spotlight: A Therapeutic Alternative
For April’s Member Spotlight, we spoke with Kimberly Cargile, CEO of A Therapeutic Alternative, based in Sacramento, California. Kimberly and her team have a deep commitment to patient education and being active in shaping the future of medical cannabis.
Cannabis Industry Sector:
Medical Cannabis Providers
NCIA Member Since:
2013
How do you uniquely serve the cannabis industry?
A Therapeutic Alternative’s patient-centered dispensary provides a variety of alternative healing therapies and lab-tested medicinal cannabis products to patients. Our patients have access to a range of complementary services, including yoga, Reiki, sound therapy, meditation, cranial sacral therapy, support groups, massage therapy, and acupressure. A Therapeutic Alternative is unique among dispensaries in California because we offer a holistic approach to treatment. We want to see patients heal, and we are dedicated to providing patients with natural therapies to use on their individual journeys. Lab testing medical cannabis is not required in California; however, we test all products with a third-party lab to ensure quality control. Products are tested for contaminants such as mold, mildew, bugs, pesticides, and solvents prior to being provided at A Therapeutic Alternative. We also test for the products’ cannabinoid percentages. This is very helpful to patients when they decide which strain to use. Because each cannabinoid produces differing pharmacological effects on the body, a product’s cannabinoid profile is extremely important.
Why should patients looking for medical cannabis services go to A Therapeutic Alternative?
A Therapeutic Alternative offers yoga, massage, Reiki, acupressure, and more.
A Therapeutic Alternative is a City of Sacramento permitted and regulated dispensary located in the medical district of Midtown. We are close to three major hospitals, the cancer center, doctors’ offices, and laboratories. We offer patients with immediate and long-term needs access to high quality service and products. Our outstanding service is due to the fact that we have hired a knowledgeable, experienced, and educated team. Together our team provides patients with support through diagnosis and treatment. A Therapeutic Alternative supplies a large variety of strains with varying cannabinoid profiles to cover a wide range of symptoms. We provide dried herbs, tinctures, topicals, edibles, capsules, concentrates, clones, and seeds. Our staff spends the time necessary with each patient to tailor a treatment plan for each individual.
Can you give us some insight into the medical cannabis community in Sacramento, where it’s been and where it’s headed?
It has taken a long time to make progress in Sacramento; however, the progress is great in respect to the rest of the state. The City of Sacramento’s staff, local patients, and advocates worked together to create a local ordinance regulating medical cannabis dispensaries. That process took about two years, starting in 2008 and finishing with a City Council vote in 2010. This allowed all 30 dispensaries to stay open and continue to operate through a stringent permitting process. A Therapeutic Alternative was the 5th dispensary in Sacramento to receive our final permit, a process that took nearly five years. There is a long road behind us and a long road ahead of us as we face state regulation legislation and adult-use or recreational use legalization initiatives in the next few years. Because we are operating in the capital of California, A Therapeutic Alternative has had a unique chance to have an impact on state legislation. We have given many tours to entities including state representatives, the Police Chiefs Association, California League of Cities and Counties, and the Board of Equalization. It is our goal to use our place in the capital to spread education about our industry’s and our patients’ needs.
Why did you join the team at A Therapeutic Alternative?
Kimberly Cargile, CEO of A Therapeutic Alternative
I have been working in the medical cannabis industry in California since 2003. When I graduated from Humboldt State University in 2006, I moved to Sacramento and took on my first job as the general manager at one of California’s first dispensaries, Capitol Wellness Collective. In 2007, I had an opportunity to work behind the camera interviewing medical cannabis patients for a documentary about the need for dispensaries. During that special time I spent with those patients, I realized that I had a responsibility to stand up and speak up for those who were too sick or too scared to do so for themselves. So, I decided to start volunteering for Americans for Safe Access and began organizing patients for City Council meetings, County Board of Supervisor meetings, Planning Commission meetings, State Senate and Assembly meetings, protests, and signature drives. In 2009, A Therapeutic Alternative opened up close to my house, and I joined the collective. Shortly thereafter I took on a consulting position to help the founders learn the ins and outs of managing a medical cannabis dispensary. I also started a yoga program at A Therapeutic Alternative for cancer patients, which I still teach to this day. In 2012, the founders asked me to join the board and take on a more active role in the dispensary. I am currently the CEO of A Therapeutic Alternative and enjoy my position managing the daily operations. Whenever I get stressed out or frustrated by the office work and politics, I go downstairs and spend time helping the patients. Talking with patients helps me to remember why I am doing it all and makes me thankful that I have the courage to help them access safe medical cannabis.
Why did you join NCIA?
When Aaron Smith told me he was going to fulfill the needs of our emerging industry by providing us with the National Cannabis Industry Association, I was thrilled. As we make progress throughout the nation, we need communication and education on multiple levels. We need it within our industry, between businesses, in order to set high standards and best operating practices. We also need it outside our industry with government, in order to make good laws protecting cannabis businesses and patients. The National Cannabis Industry Association does just that.
As our industry continues to grow and develop, it is important that we make sure that our human resource practices are in line with that of other established industries. This includes the recruiting and hiring of employees…the most critical part of this process being the interview. Here are a few things to keep in mind when interviewing potential candidates for your cannabusiness:
1. Set the tone and boundaries of the interview from the beginning
If you set expectations from the beginning of the interview that you will only be discussing the individual’s work experience and how this qualifies them for the role, you set a tone that will hopefully avoid any disclosure of information that could put the organization at risk. What makes interviewing candidates in this industry more difficult than others is that many have a very personal relationship with the plant and launch into telling you the story about this relationship if you don’t initially set the tone. Why this could end up being difficult for employers is that the information a candidate may want to volunteer could potentially put you at risk. Hiring decisions should be based on an individual’s qualifications for the job and culture fit for the organization.
For example, if an individual begins to address a health condition as a reason for their interest in the industry, this could put you in a challenging position. If for some reason an interviewing candidate discloses a health condition during the interview process, divert the topic immediately and move on to something else. You will also want to keep this information to yourself so other interviewers are not biased to make a hiring decision based on this information. Again, hiring decisions should be based entirely on a person’s ability to do the job and their culture fit for the organization. Ask questions that allow them to shine, while still getting to the heart of the matter regarding their experience, skills, and temperament to assess whether or not they would be a good match for your organization.
The EEOC (Equal Employment Opportunity Commission) is the division of the U.S. government that enforces violations of discrimination. They ensure that job applicants and employees are not being discriminated against on the basis of race, color, religion, sex, national origin, age, disability, or genetic information. Be mindful of the kinds of questions you ask so you don’t expose your company to accusations of unlawful discrimination.
2. Train your interviewers
Interviewing is not something that comes naturally to everyone. In order to make sure you are interviewing potential candidates appropriately, train your interviewers! If you are less than confident that you’re observing best practices, an experienced HR or staffing professional should be able to bring you and your fellow hiring managers up to speed.
3. Be careful when requiring ‘tests’
Many of you might want to administer ‘tests’ to employees as a way to determine their qualifications. While this may seem like an easy way to weed through the good and bad candidates, you must be cautious using this approach. Make sure your tests are relevant to the job in question to help shield your company from charges of discrimination. In addition, not all companies offering testing services are created equal. Make sure you do your research and ask questions around the potential liability of using their testing services.
4. Provide a great candidate experience
Kara Bradford, Chief Talent Officer, Viridian Staffing
The cannabis industry is still a very small community. If you don’t provide a positive, professional candidate experience during the interview process, not only might you miss out on that candidate but you may miss out on other great candidates due to negative word of mouth, blogs, or social media. If you are less experienced in this area, I suggest engaging the advice of a seasoned HR or staffing professional to help in development of your organization’s candidate experience.
*Please note that while she is an HR Professional, Kara Bradford is not an attorney. Any recommendations in this article are not to be construed as legal advice. For legal advice, you should consult your attorney.
Kara Bradford, MBA, is Co-Founder and Chief Talent Officer of Viridian Staffing. She has been an HR professional, specializing in Talent Acquisition, Workforce Planning, Employer Branding, Compliance, and Organizational Design for over 14 years. Her career has spanned multiple Fortune 100 companies in a wide variety of industries. Kara has an MBA in Human Resources & Organizational Behavior and is PRC, CIR, and CSSR Certified. She also sits on the Board of a Global Recruiting organization. Kara has spoken and is slated to speak at several National conferences this year in both the Cannabis and HR industries.
Are you a member of NCIA interested in contributing to our blog? We’d love to hear from you.
Earlier this year, Bethenny Frankel, former reality TV star, author, and founder of Skinnygirl, a low-calorie alcoholic beverage line, announced she was launching her next product, Skinnygirl Marijuana. According to Frankel, her company will engineer a strain that does not induce the munchies.
Bethenny Frankel, creator of the Skinnygirl empire.
Ms. Frankel has created a Skinnygirl empire that includes a blender, recipe books, adult-beverages, and a novel. She also wrote a children’s book based on her dog. Her first book aimed to empower women to live life to their fullest potential at all times. The Skinnygirl line now offers women low-calorie options for food and beverages as a means to find your best self. Bethenny, a true entrepreneur, now wants a piece of the cannabis gold rush.
As the cannabis industry matures, we will see other mainstream individuals and companies enter the market. The weight-loss industry has annual revenue of around $60 billion. Compare this to the legal cannabis industry with annual revenue of about $2.7 billion. Big Pharma, alcohol, and tobacco are not the only ones paying attention to the emerging green rush.
Edible product companies are beginning to produce vegan, gluten-free, and sugar-free options. But most edible products contain heavy doses of sugar, dairy, and gluten… hardly a dieters’ dream come true. Enter Bethenny Frankel. Her announcement will influence other weight-loss companies to enter the cannabis market. Will there be a “Dixie Elixir Zero” or “fat-free Sour Bhotz”?
Personally, I struggle with the idea of my dispensary, Pure Green, offering dieting products. I am an average sized woman with curves. Like every other woman in the United States, I struggled with my body image. During high school, I was a member of the cheerleading squad. I was the biggest member of the squad and was reminded of my size difference regularly. When we ordered new basketball uniforms, most of the squad ordered tops sized 28-34. Not mine. We ordered a size 40 that had to be altered in the armpits because I couldn’t get the smaller sizes over my chest.
Meghan Walstatter, owner of Pure Green dispensary in Portland, OR.
Now I can look back at these moments with a smile, but it took years to get to this place with cannabis’s help. Cannabis can help reduce anxiety, depression and stress — which can all be direct effects of body image issues. If more women relaxed with cannabis, they could have a more laid-back approach to life, resulting in an improved relationship with their bodies. I would love to help other women find body acceptance with the aid of cannabis. I absolutely do not want to participate in the exploitation of other women’s self-esteem.
Women in their 50’s and 60’s are among the fastest growing customer demographic in both the medical and adult-use markets. As retailers, we need to determine whether cannabis weight-loss products will attract these customers and other women. Women are responsible for making decisions about most household purchases. If we want our products on their radar screens, we need to offer the items they want to purchase. This may mean offering low-calorie and low-fat edibles.
Retailers can also engage in a dialogue with their existing customers about their interest in these types of products. Just because Bethenny Frankel wants to expand her product line doesn’t mean the strain of cannabis she wants to cultivate will be successful on the ground.
More mainstream industries want a piece of the cannabis pot of gold. We will see more people announcing their products lines, some with professionalism and others with ignorance. Established retailers, cultivators, and processors will have to be monitoring the response to these products to determine whether to include them in their business models. Market trends often prevail over personal values. Only time will tell.
Meghan Walstatter and her husband Matt own Pure Green, a medical dispensary located in Portland, Oregon. She is a founding member of both the Oregon Cannabis PAC and the Oregon Grower’s Association. Meghan was a member of the finance committee for Measure 91, the ballot measure that legalized cannabis in Oregon. She also has a Masters of Urban and Regional Planning from Portland State University.
Are you a member of NCIA interested in contributing to our blog? We’d love to hear from you.
I am very excited and honored to the be a keynote speaker at NCIA’s Cultivation Management Symposium in Seattle, March 16-18. I will be presenting on March 17th, focusing on Operations Management: Production, Processing, and Distribution.
In this video, you will see a brief introduction to our Denver facility, where Rolling Stone said “…if your nose is Snoop Dog-calibrated to sniff out only majority primo herb, you might just end up…“
We are proud of the work we have done in growing the finest quality small-batch medical and recreational cannabis on a large scale with consistency through beyond organic practices. There is a lot to cover and I look forward to presenting what we do and how we have done it. I will start out with the key to any strong operation, genetics, and take you right through our cultivation, harvesting, processing of the highest quality waxes, shatters, hash, live wax, live resin, and on through distribution.
If you have any specific areas on which you would like for me to speak or questions you would like to see answered, please comment here and I will do my best to make sure they are answered at the event. If you would like a private meeting or consultation at the event, please contact erik.williams@bemindful.today.
Phillip Hague, Mindful’s Master Cultivator, is widely recognized as the industry’s highly responsible leader of specialized growing practices. Having grown up working in his family’s twelve-acre greenhouse complex, he possesses a lifetime of horticultural knowledge encompassing large-scale commercial greenhouse production, large commercial landscape projects, and extensive knowledge of commercial farming practices. He understands the intricacies of industrial gardening and mindfully uses that experience to grow the highest quality cannabis with an eye toward honoring, protecting and improving genetics. Winner of numerous awards, including the prestigious Cannabis Cup, Phillip has been featured in a number of articles on the cannabis industry including High Times centerfold feature “The Indoor Acre”, in Rolling Stone Magazine, 60 Minutes, The New York Times, Yahoo News, The Wall Street Journal, in foreign press representing some 45 countries and will soon be featured in National Geographic. Prior to Mindful, Mr. Hague was the Master Grower for Golden Goat/VIP Cannabis and Natural Remedies, where he was responsible for warehouse grows and light grow facilities.
NCIA’s Cultivation Management Symposium is just around the corner!
Join us in Seattle from March 16-18 to learn from experts and pioneers in the field what you need to know to operate a successful cultivation operation while staying on top of emerging trends in the evolving cannabis industry. Register today!NCIA members save $150 on admission.
This three-day conference held at the Bell Harbor International Conference Center will showcase presentations from leaders in the cannabis cultivation arena with industry leaders specializing in sustainable cultivation methods and green business practices to learn how to keep your cannabusiness ahead of the curve while providing a positive example for others to follow.
Guest Post: Work and Well-Being in the Cannabis Industry
Across countries, continents, and cultures, we humans all have certain things in common. Generally speaking, one of those commonalities is work, which we all spend a huge portion of our lives doing. Since we all devote so much time to work, I often ask myself: “how can we make all this time spent working into the best experience it can be?” As such, my research is devoted to understanding and creating positive work environments that foster a sense of well-being, such as this latest project among workers in the cannabis industry of Colorado.
This isn’t always an easy task to accomplish. A quick Google search on “job stress” or “job safety” will instantly provide thousands of pages showing daunting statistics about how stressed out today’s worker is (like this report by NIOSH) or how dangerous some jobs are based on injuries, illnesses, and fatalities (which the Bureau of Labor Statistics tracks). The general takeaway from all these numbers is that 1) job stress is very real, and continues to increase in society; and 2) while we are continually developing better ways to make safe and healthy workplaces, there is still much more work to be done.
With these discussions in mind, you might be asking yourself: how does all this relate to workers in the cannabis industry? The short answer is “we don’t know yet”. The longer answer is “we don’t know how this relates to workers in the cannabis industry, because no one has ever asked these workers until now.” And that’s where we (my research team and I) come in, to ask these questions and provide the longest (and most thorough) answer we can.
When I first became involved with the cannabis industry, I was on a team to conduct a general health, safety, and well-being assessment for a dispensary in the Denver area. After speaking with the management and workers there, our team quickly realized that best practices for health, safety, and wellness on the job had not been addressed for this industry on a large scale. While we were able to provide our services and fill this void for that particular dispensary, it was only one piece of the puzzle – we need more pieces in order to really know how we can help this whole industry, which is constantly growing and is economically valuable to Colorado.
Additionally, there is more to satisfaction at work than simply being physically safe and healthy. Emotions, relationships, interpersonal communication, thoughts, and feelings all matter, and all play a role in determining how satisfied and happy we are with the work that we do. With that in mind, my research team and I are here to play our part in ensuring a healthy, safe, and happy future for workers in the cannabis industry.
Our team of researchers comes from Colorado State University and the University of Colorado-Denver. We are experts in a variety of fields and topics, including psychology, stress, occupational health, public health, health promotion, training, vocation, and quality of life. In this project, we are combining our skills to conduct a survey about work-related health, stress, and well-being among workers in the cannabis industry of Colorado. We are trying to understand a number of things, including why people choose to work in the industry, what sorts of jobs these workers perform, and how they feel about their job and work environment. We will then give this information back and provide results and recommendations for the industry, free of charge and with no catch.
We need help from workers in the cannabis industry of Colorado to complete an anonymous and confidential 30-45 minute online survey about your work environment and experiences. Ideally, entire organizations will participate (including management and workers) because this will allow us to paint a better picture of what is happening across the entire industry. In return, each person who completes the 30-45 minute survey will receive $20 in cash or a gift card as a “thank you” for your help! As mentioned above, we will also provide survey results and recommendations to the industry when the project is completed.
Interested in helping? If so, please complete this very brief survey to answer a few questions. After you complete this brief survey, a member of our research team will contact you to follow up and arrange to take the 30-45 minute survey. We are ready and available to come to your worksite with tablets for you to complete the survey on. If in-person tablet surveys are difficult to schedule, we can also email you a survey link or conduct pen-and-paper surveys the old-fashioned way.
Thank you for playing your role in ensuring a safe and healthy future for this industry! If you have any questions, please feel free to contact me at the email address below.
NOTE: While we recognize the importance of health, safety, and well-being on a global scale (i.e., among industries and workers in other states and countries), we are focused only on Colorado in this study in order to have confidence in how we interpret the data. If we included other states and industries, there would be too much “noise” in the data to really know what we were seeing, given that this study is the first of its kind. Ideally, we will be able to conduct future projects that can examine and answer these questions in other industries as well.
Kevin M. Walters, graduate student at Colorado State University in Industrial/Organizational Psychology
The growth of the medical marijuana movement presents a unique opportunity for advocacy groups to work hand-in-hand with the business community in order to bring about positive social change. Historically, advocates for important social reforms like the 40-hour week and safer working conditions had an understandably anti-business orientation. But when we’re talking about providing greater access to medical marijuana, such an attitude is less than helpful. In fact, it’s counter-productive. I believe if that fact were merely recognized and accepted by both medical marijuana activists and the business community, we would be much closer to establishing national acceptance than we are today.
Changing state law to allow access to medical marijuana always starts with advocacy. Most likely groups like NORML will have been agitating for years, and individual patients’ rights groups will have formed around specific issues like access for children with epilepsy or veterans with PTSD. Eventually the Marijuana Policy Project, the largest organization working solely on marijuana policy reform, will start backing the local movements by injecting capital and other resources as part of an organized push for either a statewide initiative or legislative action. Although that is an oversimplification, it paints a picture of the landscape.
Usually, once a state law has been enacted to allow for access, the advocates quiet down and business rules the day. Licensees, who are above all businesspeople thrilled at this newfound opportunity, plow full steam ahead. They raise money, build infrastructure, create jobs, and serve the community.
Although they have common interests, the link between businesspeople and advocacy groups is never formally cemented and no long-term commitments are ever made. It seems like every other big (or growing) industry understands the need for advocacy at the local and federal level. This is true across the board, not only for industries like ours which reside in a controversial space. This is reflected in the effectiveness of groups like the National Restaurant Association or the American Medical Association.
Our industry has failed to create an effective symbiosis and I lay the blame on both groups. I will start with the business element; since I am part of that contingency, I am more comfortable calling out my closest colleagues. Far too many of us fail to acknowledge that, although it may be legal to run a cannabis business in your state today, it wasn’t yesterday and it may not be tomorrow. State rules can change, and even in instances where access expands, that doesn’t mean those in the business will have a seat at the table. California is the greatest example of this. Those currently operating dispensaries in California are doing so without state licensure (as none exists). The fact that millions of dollars from the current industry participants are not pouring into advocacy and lobbying efforts to ensure California eventually does standardize licensing, and when they do, to maintain a window of opportunity for those previously operating, is mind-boggling.
All you have to do is look at the online gaming fiasco to see what could happen. Online poker sites were previously licensed offshore but doing business in the United States. When the U.S. finally accepted the reality of online gambling and allowed licensing, one of the first regulations was to ban participation by companies who had previously operated without a license. The result was the domestic closure of all the major online poker sites and a huge advertisement at the Las Vegas airport promoting real money online poker now available at WSOP.com (owned by Harrah’s). Why did this happen? Because the “big business” folks understood the link between advocacy/lobbying and business, and at the end of the day the Las Vegas casino corporations were the primary supporters of the new landscape, and of course they helped influence it being set up in their favor.
In addition to the possibility of being shut out of their current marketplaces, the cannabis business community must understand that success in their state is partially reliant on the growth of the overall marketplace and success in other states. The best thing for a licensee in Illinois is to have Missouri legalize medical cannabis. The ideal situation would be for the operators in Illinois to somehow leverage their experience in that state to access licenses in their neighboring state. The only way this has a chance of happening is for the advocacy side to be successful. For that to occur, they need money and a commitment of resources.
2013 Lobby Days, National Cannabis Industry Association, with Rep. Earl Blumenauer (D-OR)
To be fair, the advocacy groups have not done any better in forging lasting alliances. In fact, my biggest gripe with this community is their widespread distancing of their agenda from capitalism. Most, if not all, of the prominent drivers of social change on this issue have some part of their platform addressing the fact that this is about patients first. A downward spiral then ensues where, because it’s patients first, it must mean business second… or third or last or somehow altogether evil. Without successful businesses, patients will have nowhere to access the medicine that they fought so hard to get. Without successful businesses, there is no money to be poured into advocacy to open access in new states and hopefully once and for all, federally, which is the core mission of groups like the National Cannabis Industry Association (NCIA). There is absolutely no arguing this point. If that is the case, why is business so evil? It would be like a group that is fighting for family rights having part of their platform be anti-sex. Without sex you make no babies, and without successful business, patients have no cannabis.
Advocates and cannabis business owners have considerable common ground, but until they are willing to combine their efforts and wage a unified campaign, it’s going to continue to be a much harder fight than it should be.
MedMen is a medical marijuana licensing and management company with years of experience helping clients enter the field of medical marijuana, and has been a member of NCIA since August 2013.
Without a strong political machine driving legal reforms across the country, there would be no cannabis industry.
If you are a member of NCIA and would like to participate in our Annual Member Lobby Days, please visit our event page with details about the NCIA Policy Symposium and Member Lobby Days in Washington, D.C. from April 28-30, 2015.
A one-day conference focused on the latest efforts to reform state and federal marijuana laws will be held alongside NCIA’s Lobby Days, and will feature panel discussions as well as an interactive workshop teaching you how to lobby for cannabis reform. Please join us and pre-register today!
Guest Post: Managing Your Talent – Your Greatest Asset!
You’ve hired your team! Now, how do you manage that talent?
Most small business owners have demonstrated they are savvy enough to have launched an organization under the most demanding circumstances in business today. But I believe all small business owners go through a rude awakening when they realize the demands of being responsible for every aspect of that business – marketing, legal, accounting, IT, operations, and human resources. If HR isn’t one of your strongest skill sets, I hope to share insights that will build your HR competencies!
Your people are your greatest asset. Are you wondering how to maximize their value to you and your organization, and vice versa? Here are what I consider to be the top five steps to take to drive results and ensure success.
SET GOALS
What are your organization’s goals for the next year? Do you want to increase revenue by 20%? Increase production by 10%? Once you have one to five goals for the organization, set team goals that directly support the organization’s goals and individual goals that support the team goals. Then, everyone is aligned with your vision.
COMMUNICATE
You have to tell the teams and the individuals what those goals are so 1) they have purpose, and 2) you can hold them accountable. Remember, communication is the exchange of information. So collaborate with your teams and utilize their input and ideas. Make time to communicate with all the individuals that work for you – regularly and frequently.
REWARD YOUR PEOPLE
Competitive compensation and benefits are important, but most of us place more value on other forms of recognition. Have you witnessed the expression on an employee’s face when thanked for a stellar idea? Have you seen the flush of pride when an employee is publicly recognized for a job well done? The gesture costs nothing but your time and effort. There are many zero-to-low cost means of rewarding employees that one can consider.
DON’T AVOID CONFRONTATION
As a new manager, I found this to be the most difficult task to learn – to address poor behavior or performance immediately. Always discipline in private, present the issue for discussion, consider the employee’s side, and work together towards a solution. If the behavior or performance can’t be improved, then you need to get better talent. Often, the business suffers solely because we are avoiding confrontation.
BE A LEADER
Communicate your vision and compel employees to follow you by being collaborative, decisive, and respectful!
Carole Richter, CRichter ~ HR Consulting
Managing your talent can be one of the most difficult and rewarding aspects of being a business owner. The task is difficult because you are always dealing with variations on a theme! The people and the factors involved in each developmental opportunity are rarely the same. But, when your employee succeeds, you succeed.
Carole Richter, owner of CRichter ~ HR Consulting, has been a member of NCIA since May 2014. Carole consults with owners of small-to-medium-sized businesses to support, complement, or develop their skill set in talent management. She offers extensive experience in recruiting, training and facilitation, employee relations, negotiation and conflict resolution, talent management, leadership development, and succession planning.
For more on navigating the complex issues of human resources, register today for NCIA’s upcoming Educational Series event, Recruit, Retain, and Develop Your Talent, taking place on March 2at the History Colorado Center in Denver!
Recruit, Retain and Develop Your Talent — This panel of experts will help you build your human resources competencies! They will present the latest trends in talent acquisition and management. You will learn how to select the best person for the position and your organization, discover how to set and align your teams towards organizational goals, and drive and engage your best performers while managing others, up or out! Acquire the knowledge and tools you need to ensure your employees and your organization are successful.
Guest Post: Illinois Cannabis Businesses – Guidelines for Compliance with Illinois Employment Laws
By Jennifer Adams Murphy, Esq., and Ryan Helgeson, Esq., of Wessels Sherman
If you are successful in obtaining a dispensing or cultivation license under the Illinois Compassionate Use of Medical Cannabis Pilot Program Act (“IMCA”), you have already made a substantial time and financial investment in your new business. You know that to be successful, you must have a dependable workforce. Continued success, however, will require employment policies which will minimize the substantial risks and costs of employment litigation and regulatory challenge. To that end, the following issues should be addressed before you begin to hire employees:
Hiring Considerations
Needless to say, your application process must be compliant with state and federal discrimination laws. Of specific relevance to your business will be federal and state laws pertaining to arrest and conviction records. The EEOC generally considers blanket rejection of applicants with conviction records illegal, and state and federal laws prohibit inquiries regarding arrest records. These laws require special attention in your business because the IMCA requires that all employees of a dispensing organization or cultivation center obtain an “agent identification card” which will not be issued under the (proposed) regulations when an applicant has been convicted of violent crimes and certain felonies. Without a card, an individual cannot commence employment under the IMCA. Because of the potential conflict between IMCA regulations and these employment laws, the safest practice is to advise applicants that their employment is contingent upon their receipt of an identification card from the state (rather than incorporating the conviction restriction into your application).
The IMCA requirements for issuance of an agent identification card, which appear to require an applicant to have a Social Security card, are in potential conflict with I-9 employment authorization requirements. Pursuant to I-9 regulations, an employer may not specify which documents an employee provides to demonstrate their employment authorization. An employee can provide any documents that satisfy the Form I-9 requirements; employers cannot insist upon a particular document such as a Social Security card. To avoid violation of federal law, your application process should clearly state that the required Social Security card and state identification card are to meet the agent identification requirements and not for employment authorization purposes.
A contract disclaimer should be included in your employment application to ensure the at-will status of any hired employees.
Employment Record Retention
The proposed IMCA regulations require that all employment-related documents be retained for five years. I-9 employment authorization forms must be completed and retained apart from employees’ personnel files.
Employee Classification
Employers who grow and transport cannabis may be able to take advantage of overtime exemptions under state and federal law. In certain situations, minimum wage exemptions may also be available. However, do not assume minimum wage or overtime exemptions apply — careful evaluation is required. Also, regardless of classification, hours worked must be recorded and retained.
Other Policy Considerations
An employment handbook should be considered. Handbooks should have contract disclaimers and must include anti-harassment policies. In addition, employment policies should address privacy issues, particularly given the regulatory requirements of video monitoring in this industry.
Required posters pertaining to employment laws must be posted.
Adoption of an employment dispute arbitration policy should be considered. A carefully drafted arbitration policy will provide for resolution of employee disputes through arbitration rather than in courts.
Voluntary compliance with the Illinois Drug-Free Workplace Act may be a wise choice. After a conditional offer of employment is made, cannabis cultivators may wish to require a drug screening. Thereafter, a program of reasonable suspicion or random drug testing could be implemented.
Employment laws are always challenging to navigate. The issues outlined above are examples of some of the issues which are easily overlooked or misunderstood. A thorough understanding of your responsibilities as an employer in this highly regulated area will diminish the risk of costly and disruptive claims.
For further information, please contact Jennifer Adams Murphy, Shareholder at Wessels Sherman Law Firm (630-377-1554 or jemurphy@wesselssherman.com) or Ryan Helgeson, Associate Attorney (312-629-9300 or ryhelgeson@wesselssherman.com).
Wessels Sherman is a law firm with offices in Illinois, Minnesota, Wisconsin, and Iowa with a practice limited to management-side labor and employment law, and has been a member of NCIA since September 2014. Ms. Murphy has been practicing for over 27 years, counseling clients and litigating before agencies and state and federal courts. Mr. Helgeson counsels and represents clients in connection with immigration and other employment-related matters.
For more on navigating the complex issues 0f human resources, register today for NCIA’s upcoming Educational Series event, Recruit, Retain, and Develop Your Talent, taking place on March 2 at the History Colorado Center in Denver!
Recruit, Retain and Develop Your Talent — This panel of experts will help you build your human resources competencies! They will present the latest trends in talent acquisition and management. You will learn how to select the best person for the position and your organization, discover how to set and align your teams towards organizational goals, and drive and engage your best performers while managing others, up or out! Acquire the knowledge and tools you need to ensure your employees and your organization are successful. Featuring: Kara Bradford, Chief Talent Officer, Viridian Staffing — Carole Richter, Principal, CRichter ~ HR Consulting, LLC — Maureen McNamara, Cannabis Trainers.
Guest Post: Banking Access – The Struggle Is Real for CannaBusiness Owners
By Luke Ramirez, Walking Raven LLC
Bank accounts — normally, the most basic thing a business does when starting out is start a business checking account. Those of us in the cannabis industry, however, are very well aware of the struggle to get even basic banking while openly violating federal law. It has been an issue for cannabis companies for years; NCIA’s own Taylor West recently spoke about the banking challenges cannabis companies face in a Huffington Post article, stating, “It’s the biggest problem we have.”
Luke Ramirez, Walking Raven LLC Photo courtesy of Kim Sidwell
As an owner and operator of a retail marijuana center and cultivation warehouses, with a company, Walking Raven, which has been kicked out of more than seven banks in the last five years (including the loss of personal bank accounts), I can personally attest that this could be the most difficult part of running a cannabis company. Although there are pricey alternatives out there, the security risk of transferring and storing large amounts of cash invites crime from the criminal underworld, severely increasing your safety liability as a company. An additional burden comes with the very high cost of time it takes to manage all this cash and pay basic bills, such as power, water, and other utilities. In my company alone, we estimated a cost of over $13,000 in 2014 simply from the time it took to handle our cash.
NCIA has been an outstanding resource for myself and many other of my colleagues in tackling the banking issue. NCIA’s supportive network of other cannabis professionals has given me the advice and contacts I need to operate my business successfully, including banking. If you’re having issues with banking, I suggest that you reach out to your colleagues in NCIA for reputable ideas, or join NCIA if not already a member.
Thankfully, for the industry as a whole, the issue has been covered by the media and brought to light to the general public in much more depth in the last year since adult-use cannabis sales began on 1/1/2014; even Playboy Magazine covered the issue of banking in the cannabis industry last summer. In Colorado, Governor John Hickenlooper, who opposed the legalization of cannabis, asked the federal government to help Colorado with cannabis banking issues. In Washington State, the only other state to allow adult-use cannabis sales in 2014, the Liquor Control Board has also taken steps to help cannabis companies obtain banking, by making publicly available the sales activity of licensed growers, sellers, and processors.
Because of this exposure and the efforts of Colorado’s and Washington’s public officials, there have been major recent steps toward “above-table” banking for cannabis companies. On November 19th of last year, regulators in Colorado granted a charter to a credit union that hopes to work with cannabis companies; the union is now waiting upon an issuance of a master account number from the Federal Reserve to allow it to enter the country’s electronic banking system. In addition, there have recently been creditable solutions offered by one of NCIA’s own board members. While it is yet to be seen if these solutions are long-term, we are closer than we ever have been before to normalized banking.
A budtender at the Walking Raven shop
While we continue to wait for a mainstream solution for every cannabis company, dispensary owners and cultivators should:
Leverage their networks and gain contacts that can provide banking contacts. I recommend joining NCIA and taking advantage of the group’s reputable network if you have not done so already.
Avoid any kind of activity that could be construed as money laundering and therefore put your business in serious jeopardy. This kind of activity includes lying about the nature of your business to a bank, or using your personal accounts for a large amount of business activity.
Look into security companies that offer to handle your cash and eliminate the safety liability of using large amounts of cash. They are expensive, but may be well worth the cost for your business.
Once you obtain banking, avoid “obvious” cannabis transactions. Use cash to pay any vendor that has an obviously cannabis-related name that you must write a check out to.
When using cash, make sure to save all invoices, and get signed receipts from vendors and signed pay-stubs from employees; this will leave a much-needed paper trail in the event of an audit or investigation.
Luke Ramirez is owner and managing director of Walking Raven, LLC, a sustaining member of NCIA. Luke was also recently elected to NCIA’s Board of Directors. Luke has actively been in the cannabis industry since 2009. Since taking control of his company’s operations in 2011, he has changed the entire culture of the shop and successfully completed the process of converting all 3 licenses from medical to retail. Within his organization, he is responsible for all finance management, staffing, compliance reporting, marketing/inventory control, and public relations, among other things. Luke has been featured on many media outlets, such as CNBC, national CBS, and numerous local news stations. He is also actively involved in multiple cannabis trade organizations, lobbying efforts, and advocacy groups.
Guest Post: Tax Time – Using an LLC To Minimize Section 280E Selling Costs
Although there are many legal considerations when choosing the right type of legal entity for your business, one consideration that is often overlooked is Section 280E. Corporations, including S corporations, are required to pay reasonable salaries to owners and officers working in the business. By “reasonable” in this context we mean a certain minimum salary amount. This requirement is due to Social Security tax issues that are beyond the scope of this article. The point is that owners must draw a salary and if that owner is involved in selling, marketing and/or delivery, then these salaries are subject to disallowance under 280E.
IS A LIMITED LIABILITY COMPANY RIGHT FOR MY BUSINESS?
A Limited Liability Company is different in this regard. There is no requirement to pay a salary to the business owner who works the business. Instead the net profit of the business is the income reported by the owner. (This applies to both single-member LLCs as well as to multi-member LLCs that are taxed like partnerships.) When owners report net income rather than salary, then they have no salary expense to be disallowed under Section 280E.
CONSULT YOUR CPA
Note that this benefit does not have to be limited only to the founder-LLC member. It is possible, with proper advice and planning, to create an LLC structure whereby all of the workers get treated as LLC members. Such a structure could substantially reduce your 280E expenses and give you the competitive advantage you need to succeed.
Want to learn how to navigate the complex tax & legal landscape of the growing cannabis industry? Join us for NCIA’s first Cannabis Tax And Law Symposium on January 21-22, 2015 in San Diego, CA, offering CPE and/or MCLE credits to attorneys or accountants that attend to learn more about these important topics! Register today.
Luigi Zamarra, CPA, has been a member of NCIA since 2013. Luigi CPA is an accounting firm located in Oakland, CA, that helps all types of businesses and individuals with tax planning, tax compliance, and tax dispute services. Luigi specializes in the medical marijuana industry. He helps these businesses comply with IRC Section 280E so as to balance tax cost against audit examination risk.
*Disclaimer: NCIA does not provide legal or financial services or advice. Any views or opinions presented in this guest blog post are solely those of the author and do not necessarily represent those of the organization. You must not rely on the legal information on our website as an alternative to legal or financial advice from your lawyer or other professional services provider.
Guest Post: Tuning In on Cannabis Customers
By Mike Kennedy, Atomic20
Everybody must get stoned. Okay, so Bob Dylan was actually referring to the heartbreak of relationships in this song, not our fair state of Colorado since the legalization of marijuana in 2012. But after you take a look at the numbers you’ll likely agree that “never gonna be the same again” is a fitting Dylan lyric to describe Colorado’s current cannabis culture. That includes, perhaps most significantly, the legal bud marketplace.
A recent study prepared for the Colorado Department of Revenue painted a telling picture of marijuana usage in the state. One surprising figure is that only 9% of the population consumes cannabis in some shape or form. But it’s the flipside of that statistic that makes Colorado, and other states like it, such a tantalizing opportunity for budding marijuana businesses. While Colorado has less than 500,000 cannabis users, those users do so at extremely high rates, to the tune of more than 120 metric tons annually.
Assuming the cannabis industry is here to stay, that begs the question: who is positioning themselves to reap the benefits of this legion of dedicated cannabis users? The answer: those who understand that the legal marijuana business is just that, a business. A key to long-term, sustained success in any business is creating brand loyalty. And, as of now, we know that Colorado marijuana consumers who shop retail have yet to develop any.
This isn’t lost on us at Atomic20. We’re a creative agency that specializes in market strategy and design for marijuana companies. We recently commissioned an independent study of cannabis users with the help of consumer research expert Koert Bakker. The findings paint a clear picture of the current consumer landscape…
Less than half, or 42%, of frequent marijuana shoppers have a regular store they visit.
Only 18% of casual/occasional shoppers favor any given store.
67% of occasional buyers are still learning what they like and rely on a friend or budtender to influence what they buy.
Bottom line: There is a lot of market share to be had with nearly 80% of occasional buyers and 60% of frequent shoppers still up for grabs.
So how do you go about capturing the frequent and occasional buyer, and then convert them into lifelong brand loyalists? Obviously, there’s no simple answer to that question. But here are few things to keep in mind:
Competitive pricing: Don’t kid yourself. Price supersedes just about any other factor in most buying decisions. Offering daily promotions and periodic sales is enticing to any marijuana user.
High quality: For pot smokers, this is one factor that can take precedence over price. If they find a strain they like, they will search it out and buy it again and again. Developing proprietary strains is one way to give a retail shop its own unique identity.
Market expertise: You have to have a clear understanding of what your customers want. Merchandise your shop in a logical way. Determine which edibles sell and only carry those.
Strong social media presence: Having great product at excellent prices means nothing if consumers don’t know about you. In the medical marijuana industry, social media has become an effective way of reaching out to patients. For example, having a Facebook page gives you a way to stay in touch with customers on a daily basis.
Knowledgeable and friendly customer service: This sounds easy enough, but you’d be surprised how many pot businesses fall short. Do the basics. Make sure the waiting area is clean and has comfortable seating. Offer pre-rolls that are rolled professionally. And, of course, know your product inside out.
This is a defining moment in the emerging Colorado marijuana industry. The consumer base is still anyone’s for the taking. So, even if everybody isn’t getting stoned, there’s no denying that the times they have a-changed, and the cannabis business is ripe for the picking.
Mike Kennedy is a staff writer for Atomic20 (A20) — Atomic20, a Sponsoring level member of NCIA since August 2014, is a full-service marketing agency and shared creative workspace in Boulder, Colorado. In mid-2014, A20 assembled a qualified team of MJ marketers and research experts to serve the rapidly growing needs of the cannabis industry. With a local network of 85 top designers, developers and researchers, A20 has the ability to curate the perfect team for its clients with a focus on dispensaries and MJ brands.
Guest Post: Say It Right – Colorado’s Retail Cannabis Advertising Regulations
By Jeff Cohn, CEO of COHN
With the Colorado market looking to reach $1 billion in sales this year, as well as Oregon and Alaska joining Washington and Colorado in regulating retail marijuana sales, the cannabis industry is exploding at unbelievable rate with no end in sight. With so many landmines to navigate in this nascent industry, we wanted to simplify the legal jargon for the Colorado advertising regulations in a quick reference guide. We hope you find this resource useful in building your brand while abiding by the regulation nuances.
Jeff Cohn is CEO of COHN, Inc., a sponsoring member of NCIA since October 2014. COHN is a Denver-based integrated marketing firm with a passion for contributing their years of retail and service business marketing experience to the cannabis industry. With COHN’s expertise, they are well positioned to help expanding businesses grow their brand and recognition.
Guest Post: Say It Right – Colorado’s Retail Cannabis Advertising Regulations
By Jeff Cohn, COHN, Inc.
With the Colorado market looking to reach $1 billion in sales this year, as well as Oregon and Alaska joining Washington and Colorado in making recreational marijuana legal, the cannabis industry is exploding at unbelievable rate with no end in sight. With so many land mines to navigate in this nascent industry, we wanted to simplify the legal jargon for the Colorado advertising regulations in a quick reference guide. We hope you find this resource useful in building your brand while abiding by the regulation nuances.
Guest Post: A Thriving Solution – Cannabusinesses and Harm Reduction
by Matthew S. Kuehlhorn, Thrive
I am one of just over 200 certified prevention specialists in the state of Colorado. I may be the only one, though more will come, who feels there are benefits to legalizing marijuana. Legal marijuana can absolutely benefit the prevention of marijuana abuse by youth.
Matthew S. Kuehlhorn presents to a group of parents
First off, drug prevention is not really about any particular drug or group of drugs. There are no drug problems, there are life problems. And as the drug prevention field continues to evolve into this perspective, more life problems will be addressed and smart regulations will allow businesses to thrive.
What I have seen, and marijuana businesspeople can attest to, is that the regulatory framework for cannabusinesses sets the bar among any industry in existence. A simple example of this is the fact that I can take my children into a liquor store and there is no way this would happen in a dispensary. We know that does not even scratch the tip of the iceberg’s surface with regards to what minutiae you track daily.
Keep running your compliances tight and marijuana access to youth will be reduced. I have seen it happen already in Gunnison County. As a former director of this county’s substance abuse prevention project, we ask students annually how accessible they find marijuana to be. In 2013, they reported that it was more difficult to access than they did one year prior. The students completed a survey before January of 2014. In 2014, four recreational and medicinal marijuana dispensaries were opened in Crested Butte. I think for many youth, access is only getting harder.
We all know that once cannabis leaves a dispensary’s property, we don’t know how it will be handled. We also know from asking our students in Gunnison County that many teenagers who do access marijuana (and alcohol for that matter) access it primarily through social networks – friends, older students, and parents.
Matthew’s staff presents to high school youth
How do we regulate that? We can’t.
However, we can help to influence what happens. Let me explain.
Research shows that “vice” businesses cannot “prevent” the use of their substance. It simply is a blaring contradiction and it proves to not work. Studies completed on tobacco industries who tried to play a “good” line to save money showed the ads did nothing to prevent use. They did show that public perception of the company itself softened. People thought more favorably of a company that showed interest in bettering society.
I think the tobacco industry’s marketing was wrong. Their perspective of “prevention” was missing a critical aspect. They had to sit down with communities in order to find strategies that worked and they chose not to.
Matthew & fellow colleagues meet with Congressman Scott Tipton (R – CO)
The cannabis industry being so new and so unbureaucratic, you can still choose to sit down with your communities. And I suggest it is crucial to do so for you to thrive.
I sit at multiple tables. I can sit at a Cannabis Business Alliance meeting and with SMART Colorado moms and see the common interest between them. Everyone wants to thrive. We want thriving kids who are engaged with life and expressing their values, and we want an economy that supports great lifestyles while fixing some of the wrongs in the world. Nothing is wrong with that.
And we all have different values that guide our thinking on how we should get there. We can pick up sensational information, propaganda (on both sides), and more to back up our positions. Yet we share many of the same interests, and we know propaganda does little good in the long run.
I am pushing on the prevention field to address life problems and to not even look at “drug” problems. I am pushing on all of us to sit together and share our differences. This way we will see our common interests. And when we see people’s interests and understand where they come from, we can find solutions that ensure all of us thrive.
Matthew S. Kuehlhorn, CPSII, is based in Colorado and recently launched Thrive, which helps to protect the marijuana industry from an uninformed public. Thrive works closely with the cannabis industry in developing a high standard of social responsibility and customer education, and with communities in reducing risk factors and building protective factors in support of positive youth development.
Guest Post: Marijuana Victory in Oregon! Now What?
Oregon passes Measure 91, legalizing cannabis for adults on November 4th, 2014
By Ford T. Pearson, Flip-Side Magazine
[Editor’s note: Congratulations to everyone who worked so hard on the Measure 91 campaign to pass legal cannabis laws for adults in Oregon. The initiative passed with 52% of the vote. Well done! – Bethany Moore, NCIA]
Measure 91, Oregon’s adult-use marijuana legalization initiative, is likely the most elegant articulation of US regulated marijuana enterprise to date.
To be fair, Flip-Side Magazine’s paradigm of what is a good piece of marijuana legislation is heavily skewed by the economic opportunity it presents for stakeholders. While it’s clear the authors of Measure 91 remedied many of the flaws within Colorado and Washington state’s still new marijuana programs, where the measure really excels is the astounding potential for commercial endeavor.
Wholesaler category
“’Marijuana wholesaler’ means a person who purchases marijuana items in this state for resale to a person other than a consumer in this state.” —Measure 91
Measure 91 includes four stakeholder categories for which you can apply for a license. Like Washington’s I-502 categories, Measure 91 categories include producer (grower), processor, and retailer licenses. But Measure 91 also includes an exciting new category: wholesaler. The wholesaler license category, missing from Washington’s marijuana program, will make life easier for Measure 91 producers/processors and expand employment within Oregon’s marijuana program. As Washington’s I-502 producer/processors are now learning, selling marijuana can be an extremely daunting task. Even with just 66 of the planned 334 retail stores open, many I-502 processors are surprised at how time-consuming it is to manage and reconcile the preferences of 66 different buyers. Under Washington’s I-502 rules, processors have to sell directly to retailers or hire third-party marijuana sales or strain acquisition consultants to facilitate sales activities for them. Those consultants have to provide their services within a very narrow definition of activity in order to keep the transactions compliant with I-502 rules. Among the restrictions they face is the inability to actually purchase and resell marijuana the way a traditional wholesaler would. Oregon’s Measure 91 wholesaler category provides a remedy for that specific limitation and adds an entirely new facet of economic opportunity to Oregon’s implementation of a regulated, legal marijuana industry.
No “tied house” prohibition
“The same person may hold one or more production licenses, one or more processor licenses, one or more wholesale licenses, and one or more retail licenses. ” —Measure 91
Measure 91 allows for a completely vertically integrated marijuana organization. For example, under its generous licensing scheme, Measure 91 stakeholders could own several producer/processor operations, a couple of wholesale operations, and dozens of retail outlets throughout the state. Allowing this kind of structure not only increases economic opportunity, but also creates an environment that can eliminate inventory volatility and would enable micro-chains to provide consistent and reliable access to the most marketable strains of marijuana and marijuana products.
No residency requirement!
Perhaps the most significant characteristic of Measure 91 is that it does not require stakeholders to be residents of Oregon. Both Colorado’s and Washington’s programs restricted engagement (including investment from speculators) of their legal marijuana industries to residents of the state. I have to admit, when I first learned of this characteristic of Measure 91, I was disappointed. I’ve spoken to literally hundreds of I-502 applicants and licensees, and every single one of those was a small, usually family-run, business. Once Washington’s cannabis program catches its stride, those families will lay claim to their share of a half-a-billion-dollar-a-year industry, and that’s a beautiful thing.
After considering it, I think the benefits the non-residency characteristic presents likely outweigh the negatives. True, one could worry about giant companies coming into Oregon and buying up all of the strategic locations and/or resources needed to grow Oregon’s new marijuana industry, and that’s certainly possible under Measure 91 rules. However, even if that did occur, those out-of-state entities would rely upon locals to implement their plans and this would create significant employment and economic opportunities for those people. Also, and quite ironically, legal marijuana’s primary nemesis, its status as a Schedule 1 drug per federal law, works against large companies investing heavily in Oregon’s program. Federally speaking, not only would those large, out-of-state corporations be breaking the law, but they would also be crossing state lines to do so. There’s a good chance that’s more stress than your typical VP of marketing and development can tolerate. Also, it’s possible that there are quite a few Oregonians with the proverbial rich uncle who lives out of state, so the no-residency requirement would prove beneficial should they decide to engage the industry.
Anthony Johnson celebrates the passing of Measure 91 on November 4th 2014. Photo courtesy of Sam Chapman.
Go with a pro
Consider hiring a cannabis-centric attorney such as Oregon’s Paul Loney or Canna Law Group, or a marijuana enterprise consultant (usually cheaper than attorneys), or both, to guide you through the startup and license application phase.
Know the numbers
Starting up a legal marijuana business ain’t cheap. Many of the mandatory regulatory aspects of a legal cannabis business, such as fencing, surveillance and security, insurance, zoning, etc., can be big-ticket items. In Washington, even a small, Tier 1 Producer operation is easily a $100,000 investment. And if you’re a wannabe retailer, don’t forget inventory cash! Right now in Washington state, there’s a retailer bank-wiring $230,000 to a producer/processor for what is likely a 10-day supply of marijuana. Make sure you’re clear on the cash requirements for implementing your business and make sure you can access that cash. Also, be prepared to show the OLCC precisely where that cash is, and where it came from.
Hang tough!
Enduring bureaucratic scrutiny can be exceedingly frustrating. The hoops through which Measure 91 stakeholders will have to jump are significant, and you may reach a point where you consider just bagging it. Don’t. I know people who’ve quit the I-502 process, and not a single one of them is content with that decision. Don’t forget that you’re fighting for an opportunity that represents potentially generations of prosperity for you and your family.
Ford T. Pearson is Publisher/Editor of Flip-Side Magazine, a sponsoring level member of NCIA since 2014. Ford has significant experience within the legal marijuana industry, including working as a publicist for cannabis-related businesses, and as a consultant helping applicants of Washington’s Initiative 502 legal adult-use marijuana program, Oregon’s HB3460 program, and Oregon’s Measure 91 program.Flip-Side Magazine provides news and resources for the northwest cannabis industry, and is the only marijuana trade publication serving Oregon and Washington cannabis professionals.
GUEST POST: The Real Environmental Impact – Sustainable Practices For Cannabis Companies
One widely circulated quote equates the carbon footprint of producing a gram of hydroponically grown cannabis to that of “driving seventeen miles in a Honda Civic.” And while that beats seventeen miles in a Hummer, it’s a number we have the power to greatly reduce. Part of what excites me about this freshly-legal industry is that we have the opportunity to shape it in a way that big business has thus far failed to do by not putting a higher profit margin above the health of the planet.
In August I was asked to speak about this very topic in Las Vegas at the 2nd annual NCIA Southwest CannaBusiness Symposium. It gave me a chance to reflect on something I’m passionate about – the real environmental impact of what we do, what isn’t working, and how we can create positive change for this and future generations of growers and patients.
Get Under The Sun
It takes vast resources to power a warehouse grow that relies on High Intensity Discharge (HID) or High Pressure Sodium (HPS) lights. Automated light deprivation greenhouses can produce cannabis of equal or greater value as that produced indoors at half the cost and one quarter the environmental impact.
Cannabis used for extracts can all be grown outdoors. Provided you live in a climate that allows for outdoor cultivation, sun-grown cannabis is excellent starting material for extractions. The finished form will be far from the flower, so why not take advantage of one of our most powerful (and free!) resources?
Solstice growhouse
Keep It Lean Indoors
I know that not every method of cultivation can rely exclusively on solar power. However, in indoor grows, we can focus on efficiency.
For most indoor grows, Heating, Ventilation, and Air Conditioning (HVAC) systems are a huge resource suck. I’ve discovered that the best method is to utilize a centralized Variable Air Volume (VAV) system.
Make sure the envelope is sealed. Keep your buildings well insulated to prevent energy leaks. Without a higher energy code and tighter insulation, many industrial-scale grows hemorrhage energy and resources.
Lay Down the Law
Frankly, some of the cities and states currently passing laws to regulate cannabis cultivation have the least enviable power infrastructures. Las Vegas, which relies heavily on coal and natural gas, is ahead of the curve in terms of legislation, whereas clean n’ green hydro-electrically-powered Washington State has yet to create stringent and sustainable regulations. Legislators have been more concerned with issues of security and diversion than environmental impact. The “pot is dangerous” paradigm needs to shift to “unregulated grow practices are dangerous for the planet.”
Nice Package…
We can effectively undo all the good of a smart grow with wasteful packaging.
Glass jars with cork & wood tops
Think cradle-to-grave for your packaging: Where did it come from? What is it made of? Where will it go after it has been used? That plastic container might be a good fix in a pinch, but think about the impact it has as you scale.
We’ve got to reduce plastics and push glass, wood, or paper wherever possible. Almost every gram of cannabis that goes out into the world from a processing facility is wrapped in plastic – and we all know that it can’t be properly disposed of or recycled. However, the plastic used for business-to-business bulk orders could be saved and reused.
At Solstice we’ve been designing glass containers with cork and wood tops for our flower. They can be collected, reused, or returned for a deposit. Our pre-rolls are made from 60% post-consumer recycled paper and printed with vegetable ink. Every little bit counts.
Have Multiple Bottom Lines
The “Triple P bottom line: People, Planet, Profits” is the newest, sexiest take on commerce with a conscience. The Triple P works primarily because it’s a flexible paradigm; it gives business owners a framework in which they can question and evaluate the human and environmental cost of every move they make.
Across industries, innovative leaders are finding more generous, humane, and ultimately more sustainable ways to do big business. Some of these are easy and inexpensive: utilizing proper waste disposal, bike-to-work incentive programs (a Solstice favorite), Plant-A-Tree days, or making sure your pesticide program is safe for employees and the planet.
Sometimes however, there is an unavoidable immediate cost to doing what’s right. Google uses a fancy fuel cell with 2-3 bloom boxes for their building infrastructure. They’re getting loads of good PR for this – in part because very few people can afford to use them.
But it is my belief that the more you grow, the more capital you’re bringing in, the more you have to give to impeccable resource management.
Everyone knows that cannabis makes money; we’re looking at a multi-billion dollar industry over the next 5 years. Hobby systems and garage standards are not scalable for the cannabis boom. Whatever the laws might ‘allow’ us to do, we have to stay ahead of the curve and firmly within our own conscience.
Alex Cooley is the owner of Solstice, a member of NCIA since April 2013. Solstice founded their Seattle-based flagship in 2011 as the first-ever permitted cannabis production facility in Washington State. Solstice has taken an environmentally conscious approach to high quality cannabis production and has cultivated over 350 different types of cannabis, creating one of the most robust genetic libraries anywhere in the world.
This site uses cookies. By using this site or closing this notice, you agree to the use of cookies and our privacy policy.
CCIA members, board, and staff were central to the process — advocating for the cannabis industry and pushing back against the most harmful proposals. The resulting legislation isn’t perfect, but it’s an important first step towards a safer, more professional industry. Click here for more information on CCIA’s legislative victories in the 2015 legislative year.
But before you buy your cannabis equipment and hire a staff, you will first need for your state to give you a license. In order to get this license, you will need to apply to the state for review and approval. Your application can range from 300 to 2,000 pages and will cover a wide range of operational programs, including a well-defined security plan.
consumption (think wise use of resources) and unique experiences designed for purposeful feeling.
The alcohol industry requires that all alcohol products be tested for potency, which is called alcohol content. While alcohol content is required to be posted on labels, how often does alcohol percentage affect your drink selection? When a friend offers you a beer they may ask you if you want an IPA, Kolsch, Ale or Stout. Or, when you are shopping for wine you may think about whether you want a Merlot, Chardonnay, Zinfandel, Rose, or Pinot Noir. Rarely is alcohol percentage the deciding factor. No one asks whether the beverage has 4%, 13% or even 95% alcohol content. If that was the case malt liquor and Ever Clear would be the alcohol of choice. Instead, what we see is that enthusiasts look for a wide variety of qualities other than just potency. The same should be said for cannabis.
Studio 420
If you set expectations from the beginning of the interview that you will only be discussing the individual’s work experience and how this qualifies them for the role, you set a tone that will hopefully avoid any disclosure of information that could put the organization at risk. What makes interviewing candidates in this industry more difficult than others is that many have a very personal relationship with the plant and launch into telling you the story about this relationship if you don’t initially set the tone. Why this could end up being difficult for employers is that the information a candidate may want to volunteer could potentially put you at risk. Hiring decisions should be based on an individual’s qualifications for the job and culture fit for the organization.
We need help from workers in the cannabis industry of Colorado to complete an anonymous and confidential 30-45 minute online survey about your work environment and experiences. Ideally, entire organizations will participate (including management and workers) because this will allow us to paint a better picture of what is happening across the entire industry. In return, each person who completes the 30-45 minute survey will receive $20 in cash or a gift card as a “thank you” for your help! As mentioned above, we will also provide survey results and recommendations to the industry when the project is completed.
Competitive compensation and benefits are important, but most of us place more value on other forms of recognition. Have you witnessed the expression on an employee’s face when thanked for a stellar idea? Have you seen the flush of pride when an employee is publicly recognized for a job well done? The gesture costs nothing but your time and effort. There are many zero-to-low cost means of rewarding employees that one can consider.
Needless to say, your application process must be compliant with state and federal discrimination laws. Of specific relevance to your business will be federal and state laws pertaining to arrest and conviction records. The 
An employment handbook should be considered. Handbooks should have contract disclaimers and must include anti-harassment policies. In addition, employment policies should address privacy issues, particularly given the regulatory requirements of video monitoring in this industry.
