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.
Guest Post: Plane-ly Legal – Carrying Large Sums of Cash on Commercial Airline Flights
By Luigi Zamarra, CPA
Due to the banking challenges facing our industry, many business owners are working with large sums of cash. Sometimes this cash must be transported: brought to the location where payment is agreed to be made. Sometimes this requires boarding a commercial airline flight with a large sum of cash in your carry-on baggage. (I do not recommend putting cash into your checked baggage.) You should not worry.
While working with a client to plan dividend distributions to their investors, the client expressed his concern that TSA would not allow anyone to board a domestic flight with large sums of cash. This did not seem correct to me for a variety of reasons, so I decided to look into the issue further. Please remember that U.S. currency is “legal tender for all debts, public and private” and there is no law that states that VISA, MasterCard, and the big banks must be in the middle – and get a piece of the action – of every transaction. We have the right to conduct all of our business in cash if we choose, and making such a choice should not subject us to suspicions. As an industry, we should be united in defending our rights to use cash, and we should reject any assertion that using cash implies criminal activity.
It is important to draw a distinction between domestic flights and international flights. On international flights, you must file FinCEN Form 105 with the U.S. Treasury if you are either entering or leaving the U.S. with more than $10,000 of cash currency. This rule does not apply to domestic flights, either intrastate or interstate. On domestic flights, there is no limit; you are legally entitled to fly with as much cash as you see fit, and you are not required to file any form with U.S. Treasury.
It is also very important to understand that TSA is not a law enforcement agency. TSA personnel are not trained in the legal procedures of collecting evidence or conducting investigations, so such actions must be conducted only by law enforcement. TSA’s mission is to “protect the transportation system to ensure freedom of movement of people and commerce.” According to TSA policy, (a) “screening may not be conducted to detect evidence of crimes unrelated to transportation security,” and (b) “traveling with large amounts of currency is not illegal.”
Unfortunately the TSA has engaged in mission-creep recently by searching for cash and engaging in interrogation when cash is found. If you find yourself being questioned by TSA about why you are carrying cash and where you got the cash, you are entitled to refuse to answer these questions. You should state, quietly but assertively, that such information is confidential and that such questions are outside of the TSA purpose and mission. You should also remind the TSA official that such questions are beyond TSA authority, since they are not permitted to investigate evidence of crimes unrelated to transportation security and since there is no danger to air safety from a briefcase of $100 dollar bills. Finally, remind the TSA official that traveling with large amounts of currency is not illegal.
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.
Guest Post: Oregon to Vote on Adult-Use Legalization in November
By Anthony Johnson, OCIA executive director
It’s official! Oregon voters will have the opportunity to join Colorado and Washington in regulating, legalizing and taxing cannabis like beer and wine this November. Oregon has wasted too many law enforcement and judicial resources arresting and citing thousands of Oregonians every year. Nearly 100,000 times over the last decade law enforcement officers have taken time out of their day and the day of cannabis users to either write tickets or actually place someone under arrest. Those arrest and citations, in addition to the added judicial, jail and prison costs are a huge waste of Oregon’s limited resources.
The New Approach Oregon measure will also create a new regulated industry that will allow Oregon’s cannabis industry to follow in the footsteps of the state’s successful microbrewery and winery industries. Under the measure, the Oregon Liquor Control Commission (OLCC) will provide wholesale, retail, producer and processor licenses to qualified applicants for $1,250. This relatively low barrier to entry will allow for small businesses and Oregon mom-and-pop shops to enter the market and compete.
A reasonable one-time tax of $35 per ounce ($1.25 per gram) for flower, $10 per ounce of leaf and $5 for every plant sold will keep prices affordable, letting regulated businesses to compete, and eventually diminish the unregulated, illicit market. The OLCC will collect the tax after the first sale after production, keep enough funds for enforcement and then disperse 40% to education, 15% to state police, 10% to cities, 10% to counties, 5% to drug prevention and 20% to mental health and substance abuse treatment services.
Marijuana use must remain out of public view and cannot be delivered within 1,000 feet of schools. The measure doesn’t impact the Oregon Medical Marijuana Program and allows for limited home cultivation (similar to home brewing of beer). The proposal doesn’t change current driving under the influence laws, landlord tenant relations or workplace rules.
Polls show that the New Approach Oregon measure can win at the ballot box and an experienced campaign team has put together a plan for victory. However, prohibitionists like Kevin Sabet and vested interests such as Big Pharma are going to put up a fight. Please go to www.newapproachoregon.com to donate, volunteer and help spread the word about this important measure that will improve the lives of Oregonians and help set the stage for more states to legalize cannabis in 2016.
Guest Post: Commercial Cannabis Compliance – The Key to a Golden Age
By Mark Slaugh, Founder and CEO of iComply, LLC
As I call another contact in Colorado, the knowledge of the latest Denver Post article is still fresh in my mind. The headline reads, “Denver approves plan to increase staff to enforce marijuana regulations.” Our client, busy as usual managing plants, product, and people, sighs in desperation as I tell her about the additional $3.4m in Denver being added to the $25m budget of State regulators.
Exasperated, she says, “man, it seems like they want to regulate as few of us as possible.” She knows the horror stories etched on the tombstones of businesses now shut down due to regulatory enforcement. Forfeit in the grave are dozens of jobs, thousands in investment, and millions in opportunity.
I know the struggle of marijuana businesses to reach the high bar of compliance that has been set in Colorado for commercial cannabis operators. When I started iComply in 2011, it was with the operational understanding of early rules at an initial stage of medical marijuana regulatory framework. At the time, my work had been facilitating the operations of new dispensaries and directing a Southern Colorado industry group making its way through local laws and state legislation.
Back then, we all knew about cameras, about locks, about badging, about tracking sales. What we didn’t know was how long the arm of the Marijuana Enforcement Division (MED) was. Up until last year, the industry and regulators we still figuring it out. Many people viewed enforcement like a Sasquatch; sightings and rumors abound but with very few inspections ever conducted and even fewer enforcement actions taken.
Typical in new markets, about 60% of the industry went out of business in the first 18 months and the Division had over-projected revenues and under-projected budgets. In short, they were down to 12 employees and very little bandwidth in the field to regulate over 1,000 facilities.
To no real surprise, a scathing audit of the MED found they were inefficient and ineffective. However, shortly after Amendment 64 passed, legislators took action. The Division was robustly funded to make up for years of enforcement gaps. The industry, for the most part, rejoiced over the possibility of removing bad actors from the playing field and leveling the standard for compliant cannabis commerce in Colorado.
The only reason anyone in the national industry is allowed to blatantly violate Federal Law is if they can show clear, unambiguous, compliance with State regulatory regimes. These regulations cover the eight Department of Justice Guidelines outlined in the 2012 Cole Memo. As new states bring regulations online from CBD only, to medical and retail marijuana, the signal is clear: expect enforcement to hold businesses accountable to the law.
For experienced and novice operators alike, compliance is a challenge that is difficult to take on alone. Qualified labor shortages are the nature of the market place and budtenders and growers seldom read legalese and are able to fully comprehend the regulatory expectations of the industry. Managing compliance details is crucial and standardizing best practices is far from complete. As the industry matures in Colorado and expands nationwide, owners and operators must keenly hone in on what the future will look like:
State-wide seed to sale tracking using RFID technology, real-time analytic reporting to law enforcement, standard operating procedure requirements, laboratory testing, manufacturing safety protocols, and product homogeneity under certified processes are just a few of the high level expectations likely to govern any cannabis market in the US.
As operators expand the marketplace by opening more facilities amid multiple states, we must contend with a slew of regulatory nuances. Colorado owners are hiring a scarce qualified workforce as compliance officers to internally manage reporting, tracking, and deadlines. Rules change frequently, and interpretations vary from attorneys to individual enforcement agents in the field – making a complex operation even more difficult.
We have clients who, due to missing the filing of one form, have had over 20lbs of product sanctioned by enforcement. For 6 months, they have simply awaited action by regulators with no clear end to empty shelves and disappearing customers in sight.
States who miss the reality of rubber hitting the road are faced with the question of establishing reasonable enforcement procedures inherent to licensing. In Colorado, a record number of application denials, enforcement actions, and administrative hearings has taken the industry by force and surprise since Retail sales came online Jan 1 this year.
A few words to the wise for the Responsible and Compliant vendors of the future.
Do everything you can to mitigate the risk of non-compliance.
Document, whenever possible, the activities of your facilities.
Be pro-active rather than reactive to changing regulation.
Support industry organizations to negotiate your rules based on best practices.
Preparing against non-compliance is the first step to ensuring a compliant operation and to reducing scrutiny from Law Enforcement. How we operate will determine our fate and the whole world is watching. Our brave new world still hangs in the balance and any single operator is either an asset or a liability to the overall industry and movement. Compliance is key to unlocking the golden age of commercial cannabis as expectations rise and the industry grows.
Mark Slaugh is the founder and CEO of iComply, LLC, and has more than four years of experience in the regulated cannabis industry development, consulting and compliance business. His successful startup provides valued services to clients on starting operations, production/manufacturing/retail management, and compliance consulting, training, and certification. Additionally, he served as the Colorado Springs Medical Cannabis Council (CSMCC) industry membership and executive director, and as the Southern Colorado Regional Coordinator for the Campaign to Regulate Marijuana Like Alcohol (Amendment 64).
NCIA Board Candidate Statement – Cody Bass
By Cody Bass, Tahoe Wellness Collective (CA)
Our industry is reaching a point that we must be organized and represented as a unified industry with real guidance. National Cannabis Industry Association is what I see will ensure that for this great industry. I would bring a perspective to the board that is deep rooted with knowledge that comes from dedicating my life of thirty-three years to this plant. I have worked in every angle of this industry and understand the business just as much as the plant. Serving on the board I would bring a perspective that will help in shaping this great industry by sharing the knowledge I have gained for cannabis throughout my life. I have an extensive background in the cultivation of cannabis from large outdoors cultivation to small and large indoor operations. I have opened multiple dispensaries in different municipalities from the ground up. We as an industry are faced with setting standards around quality, integrity, and policy. I would have valuable insight to the board in developing those standards. The National Cannabis Industry Association is the voice for what I have dedicated my life to. I would be honored to give my time and energy to this great association by serving on the board.
Tim Cullen believes in NCIA. This belief has been supported with active membership since 2011. His work with the legislative process resulted in the first legalized cannabis sales in the United States. Tim understands the social and economic benefits of legal cannabis. This includes the individuals who are no longer being prosecuted for cannabis possession to the tax benefits being enjoyed by the State of Colorado and the City of Denver. He is an example of how the cannabis Industry can work with state and local officials to create an environment where both enjoy the benefits of carefully crafted legislation that establishes the legal framework for continued success of cannabis business. Colorado has provided a model to the country that Tim understands. His leadership on the NCIA board will serve as a platform to share the aspects of success as well as areas of concern that have come about as Colorado became the first state in the union to fully legalize adult use. Tim understands the important role that NCIA has played and will continue to support the principle of power in numbers by helping to recruit new members to the organization. Tim represents the professional business aspects of the cannabis industry by the supporting local and national efforts to expand the growth of the legal cannabis markets.
NCIA Board Candidate Statement – John Davis (Incumbent)
By John Davis, Northwest Patient Resource Center (WA)
John Davis is running for a board position for the NCIA and would appreciate your vote. John’s Seattle-based organization is Northwest Patient Resource Center, which John founded and currently serves as the organization’s Chief Executive Officer.
John has served as a board member of NCIA for two years and has a successful track record of attendance and participation in events ranging from board meetings to lobby days. Northwest Patient Resource Center is a founding member of the NCIA and Washington State’s first member organization and is active in recruiting new members. John looks forward to working toward further successes for and with NCIA.
John has been working on cannabis law reform for more than 20 years. John has worked on many initiatives since 1993 including I-692 (Washington Medical Marijuana) and I-75 (Seattle lowest police priority). John is a founding member of the Coalition for Cannabis Standards and Ethics (CCSE) and currently serves as the Executive Director. John has worked with many localities including the Seattle Mayor’s office, state and federal lawmakers, and Congressional committees and subcommittees. John has written and influenced laws since 1993. John was a member of President Vicente Fox’s global summit on cannabis reform. John is a member of Governor Jay Inslee’s Recreational MJ Guidance Workgroup. John continues to work with the Washington Liquor Control Board on adult-use cannabis implementation in Washington State. John is a current board member of the National Cannabis Industry Association, the Nevada Cannabis Industry Association, and Chairs the Board for Seattle Hempfest’s production company. John has been featured in the Wall Street Journal, Washington Post, New York Daily News, Time Magazine, GQ, CNN, BBC, NPR, Al Jazeera (Worldwide, English, and America), TF1, ITN4, ABC, NBC, CBS, Seattle Times, LA Times, Las Vegas Spokesman Review, Weekly World Report, and many others.
I became a founding board member of the NCIA because I believe that the development of a responsible, politically engaged, and profitable legal cannabis industry will be the single biggest factor leading to a day when not a single adult is punished for this plant. Through my work at The ArcView Group I do everything I can to promote the NCIA by giving NCIA stage time to pitch our 180+ investors at every meeting, inviting NCIA Executive Director Aaron Smith to introduce any political figures that come to speak at our events, and by inviting NCIA staff onto our market research report webinars. We offer a significant discount to NCIA members for membership in the ArcView Investor Network and for purchase of the the 2nd Edition of the State of the Legal Marijuana Markets report. We are also collaborating with NCIA on a jobs report. I also include NCIA’s logo in my auto-signature and mention them often when talking to media. I focus my attention as a board member mainly on fundraising and member development efforts since that is a special way that I can help. I don’t think I’ve ever missed a meeting or a phone call. I stand for not just building a new industry, but building a new kind of industry built on a social mission of health, wellness, responsibility, and freedom. We are part of one of the most incredible social, political, and economic stories of our time. With that comes great responsibility to make sure we write the history books in a way that continues to bring tremendous value to the world. I hope I can count on you for your vote.
For me the National Cannabis Industry Association is an important part of the movement to legalize the growth, possession, and use of the cannabis plant. I want to live in a world where adults can make the choice for themselves of whether or not to interact with this natural product, be it for personal consumption of the flower in a manner similar to medicinal herbs or alcoholic beverages, or be it for industrial purposes such as sustainable fuels, or fiber for production of useful items such as rope, clothing, paper, and building materials.
My many years of personal experience in the marijuana legalization movement led me to support the cannabis industry as it developed. For a couple of years now I have been involved with the NCIA at some level, and last year my new company to provide financial services, Dietrich Union, became an NCIA member. Over this time I have seen the NCIA expand and evolve, and from here I want to help this organization to be more successful. The way that I define success for the NCIA is how well it serves its member businesses and the consumers who willingly support them with their dollars exchanged through investments and purchases.
As Bill Clinton famously stated in 1992, “It’s the economy, stupid.” At this point I believe the cannabis industry is the best way forward in the effort to legalize cannabis in the United States. If cannabis is legalized in the U.S., then I am certain that a number of other countries throughout the world will also legalize it.
I am running for the NCIA Board of Directors because as a committed fighter for personal liberties and for the success of our efforts I want to help the NCIA to succeed, at the same time as I want to help it to remain true to its roots in the marijuana and hemp legalization movements. Please consider voting for me for the NCIA Board of Directors so that I may bring it my commitment to furthering the contribution that the NCIA makes to this new industry.
As we are all aware, there has been a significant phase-shift in the public’s opinion of both medicinal and recreational cannabis. New states are adopting marijuana programs at a very swift pace. For NCIA to enjoy long-term success, it will require the stewardship and insight that can only be provided by individuals who possess multi-modal and multi-jurisdictional expertise.
To this end, through my current industry ventures, I have developed relationships and have garnered experience that would serve to benefit both the NCIA and its individual members. I have had a direct and active role in the design and construction of cannabis-specific facilities and have developed, grown, processed, distributed, and ultimately provisioned cannabis and myriad cannabis-infused products.
As Board Chair of the Marijuana Industry Group, I spent countless hours crafting industry positions that have been translated into rules and regulations that often serve as the template for new legislation in states beyond Colorado. I have been seated on a number of governor-appointed workgroups in Colorado which have addressed many of the issues associated with the legalization of adult-use cannabis including: testing protocols, lab standards, child-proof packaging, marketing and advertising, and potency limits (which we effectively quashed).
NCIA’s efforts at the federal level have always focused on issues, such as banking, that affect us all no matter our geography. I contend that this mission not be changed. However, I do believe that as marijuana commerce matures, expands, and evolves, federal oversight will become a reality and, in turn, if we are to thrive, it will necessitate a broader, active industry voice in legislative and policy development. It would be my duty as a board member of NCIA to grow our member and donor bases to provide the funds needed to keep our foot in the door and then to help provide the political and operational insight to ensure that reasonable regulations be promulgated and an environment conducive to our collective success is nurtured.
I’m honored to be nominated for another term on the NCIA Board and I am seeking reelection. Since day one of NCIA’s founding, I have provided stability and leadership to the NCIA membership. It has been my honor to do so, and I look forward to continuing to serve. I am a founding and current member of NCIA’s Board of Directors, serving as Chairman of the Board from 2012-13. My company, Berkeley Patients Group (BPG), is also a founding member of the NCIA and continues to be an active member-business, sponsoring events, participating in lobby days, and recruiting new members.
As pioneers of the cannabis industry, BPG and I bring decades of experience to the NCIA Board. We are well positioned to continue helping build NCIA into a powerful force in Washington, D.C. We know first-hand the struggles it takes to operate and maintain a successful dispensary under great duress while simultaneously working to improve and grow the business. Last year, our local U.S. Attorney initiated forfeiture proceedings to seize the property housing our dispensary. Within hours, NCIA came to our defense and helped us tell our story, to both media and elected officials. I experienced first-hand how vital NCIA is for our industry.
I hope to maintain my board seat in order to assist the many new entrants in our burgeoning industry. I am committed to supporting the growth of our industry, and I need your help to continue this work. BPG has been a consistent participant and sponsor of numerous NCIA events, helping to build NCIA and the industry as a whole. BPG will continue to assist in broadening the NCIA membership base through event sponsorships and direct recruitment. I appreciate your ongoing support and ask for your vote in the upcoming NCIA Board election.
NCIA Board Candidate Statement – Gabriel Greenstein (Incumbent)
By Gabriel Greenstein, TetraLabs (CA)
As the incumbent Vice Chairman of the National Cannabis Industry Association, I have had the honor of helping to build the NCIA into the single most relevant and important trade group working in the cannabis space. NCIA has become the national voice of our industry, representing stakeholders and pioneers across the country. I feel blessed and grateful to have been a part of it.
As a founding member of NCIA I have built a strong track record of participation, helpful contributions, and responsible leadership. I’ve spent years working closely alongside Aaron Smith to help expand membership and promote and plan events.
During my time as an NCIA member I have attended and sponsored dozens of meetings and events all across the country, and have been involved in our national lobbying efforts in Washington, D.C.
If my fellow members would do me the honor of reelecting me to our board, I promise to continue to help lead efforts to increase our membership, revenues, political power, and national footprint.
NCIA Board Candidate Statement – Dr. Lakisha Jenkins
By Dr. Lakisha Jenkins, California Cannabis Industry Association (CA)
It is both an honor and humbling experience to be nominated for the NCIA Board of Directors. I am excited about the potential of the opportunity to extend my dedication and passion in the area advocating for responsible business practices and corporate accountability within the cannabis industry to a national level. If elected for this position, I will bring to the Board both direct practice and competent experience with executive level management and fundraising. I would bring to the position my corporate expertise in a variety of settings, across different institutions, cultures, and business industries. I currently serve as President of the Board of Directors for the California Cannabis Industry Association (CCIA), which is the state affiliate of NCIA and the trade organization representing both the cannabis and industrial hemp industries in California at the local and state levels. In addition to service with CCIA, I also serve on the Health, Hunger and Wellness Coalition Board for the City of Patterson and the Board of the Alameda County 4H – an extension of the University of California Agriculture and Natural Resources division. Currently, I hold a Doctorate in Naturopathy and am a professional member of the American Herbalist Guild. My passion for natural health and alternative healing therapies started while researching alternative treatment options as my eldest child, Kiona, battled with brain cancer. I have served as President of the Kiona T Jenkins Foundation for Natural Health since its inception in 2003. I believe that my background, education, and my experiences in administration, leadership, and fundraising have prepared me to be an effective member of the Board of Directors and a strong advocate for NCIA’s diverse base of professional and business members. I am immensely grateful for this nomination and eager to serve if elected. I am asking for your vote and support in this leadership position and challenge.
I am running for a National Cannabis Industry Association board position because I want to join the campaign to legalize marijuana nationally for two reasons: it is negligent of our legislators to prohibit cannabis from being available to any and all patients that a doctor feels could benefit from treatment with cannabis and, in the most direct terms I can express, I believe that if alcohol is legal than marijuana being illegal is excruciatingly illogical. Without reiterating all of the science that we currently know about cannabis, simply stated it treats illness less expensively and more effectively than many of the high-priced, big pharma drugs on the market today, and all evidence to date points to the conclusion that alcohol, a legal drug that can be purchased in any corner liquor store in America with both state and federal government enjoying the tax revenue, is more physically and psychologically damaging than marijuana. For one to be legal and not the other is hypocritical, illogical and ridiculous.
I am a clean-cut, successful, professional businessman who has responsibly used marijuana recreationally, survived the alleged gateway affects and mind-scrambling and de-motivating influence marijuana is suggested by prohibition advocates to have. I would like to face legislators eye to eye and counter those assertions by exhibiting myself as living proof that marijuana is not the evil weed many of those in my generation grew up being programmed to believe. It is not a matter of IF cannabis will be legal in all 50 states but WHEN. Many people have an aversion to change but change in the legalization of cannabis is eminent. The burden of WHEN is being carried by NCIA and will be successful due to its volunteers’ contributions and efforts. The majority of Americans agree that marijuana should at least be legal for medical use if not completely decriminalized. America is ready for legalization and luckily we have an organization like NCIA to push that agenda. I want to be part of that fight and that is why I am running for the NCIA board.
Having joined NCIA in its first year of operation, I have always sought to build and advance the organization. I personally know and respect a majority of its membership, and I am aligned with our common interests for a strong, thriving, and respected cannabis industry. I am seeking your vote for a seat on the NCIA board to raise my involvement in the organization to a new, more powerful level. By sitting on the board, I can better promote cannabis reform and influence how the industry can grow and where it’s headed.
Growing up in Rockford, IL, the third most dangerous city in America, I saw firsthand the negative effects of prohibition and the drug war. I made connections early on between prohibition and many of the dysfunctions in our society. These connections are what put a fire in my belly for change, and it has never gone away.
I believe that with my love for this industry and the patients it supports, my talent as a motivator and promoter with a substantial presence and following on social media, my experience as a lobbyist, and my connections to the entertainment industry, I can help NCIA build its network of power-brokers, celebrities, and other influential stakeholders.
I come to NCIA as an experienced medical cannabis dispensary operator with a successful and proven model. If elected, I will be the only board member to represent Los Angeles, the single largest municipality to regulate medical cannabis and the largest cannabis market in the world. I played a key role in the adoption of those regulations, but I have also worked under the imposition of a ban on distribution, and under “limited immunity,” and I want to bring all of that knowledge and insight to the NCIA board.
I am extremely hard working, focused, and persistent, and will bring these qualities to the NCIA board if elected. I am very excited about this opportunity and I hope to get the chance to work with the great membership of the NCIA board.
NCIA Board Candidate Statement – Dr. Steven M. Katz
By The Honorable Dr. Steven M. Katz, Budding Enterprise Fund (NY)
Forty years of experience in the business world, science, veterinary medicine, politics, and the legislature, coupled with the confidence of full national legalization, had brought me to the point where I know I can make a significant contribution as a board member of NCIA. As a New York State Assemblyman I am shepherding my bill to legalize medical marijuana through the state legislature.
I am one of the first elected officials to publicly announced his commitment to the marijuana industry and have shown it by investing broadly within this space. As a legislator in one of the nation’s largest states, I have become a leading spokesman for the many medical benefits of cannabis and for national adult-use legalization.
As a veterinarian, I founded the Bronx Veterinary Center in 1995, becoming the largest veterinary hospital in the Bronx and one of the largest pit bull practices in the nation.
I have been passionate about the legalization of marijuana for the past 42 years. I view the industry as one of the great private sector job-creators over the next 20 years. I’m summoning all of my experience, passion, and dedication to help formulate policy and develop standards for our industry. I shall continue to be one of the outspoken leaders of our movement. My legislative experience and activism will help move each state over to the legal marijuana side of town.
Becoming a board member of the NCIA would be the culmination of 42 years of passionate belief in the full legalization of this remarkable plant.
I alone uniquely represent the conservative voice nationally for the cannabis industry.
I will continue to hammer on a national basis the themes of our industry following the Great American Entrepreneurial Tradition, the private sector jobs we’re creating, and the revenue we’re generating. I will continue to voice nationally the incredible medical properties this amazing plant possesses.
I’m running for the board of NCIA because I’ve spent my entire career working to bring about an end to cannabis prohibition and to help shepherd a new cannabis industry based on reason, compassion, and sound business practices. For over ten years I worked as an advocate for change on this issue. Starting as a college student when I helped found Students for Sensible Drug Policy, I dedicated my work to this cause, going on to serve as Associate Director of NORML and later as executive director of SSDP.
Unlike many who were motivated to get involved in the cannabis industry strictly by the prospect of making money, I chose to move from advocacy to industry because I saw the influence that private enterprise was having on changing public perception about cannabis and cannabis distribution. When cannabis businesses are well run, they change stereotypes of what cannabis and cannabis distribution can and should look like.
My motivation for forming 4Front Advisors was to enable as many dedicated professionals as possible to open retail facilities that their communities could be proud of. We’ve worked tirelessly to develop best practices and standards that are unmatched in the industry today in furtherance of this goal.
In my work at 4Front Advisors I’ve had the opportunity to assist clients in numerous states around the country, including Arizona, California, Illinois, Massachusetts, Nevada, Rhode Island, and Washington, D.C. As such, I have a breadth of understanding of the issues and challenges that cannabis business owners face in different regulatory environments that goes beyond your average cannabis industry entrepreneur.
Having served as a Congressional lobbyist, non-profit executive, and now leader of a major cannabis industry consulting firm, I hope to bring the skills that I have acquired to NCIA to help further the organization’s goals. As a board member, I plan to work closely with NCIA staff and board, many of whom I have known and worked closely with for years, to advocate changes to banking, taxes, state cannabis laws, and eventually an end to prohibition. I would be honored to have your vote.
NCIA Board Candidate Statement – Jaime Lewis (Incumbent)
By Jaime Lewis, Good Chemistry (CO)
As a business woman and industry advocate, I have been involved in the medical marijuana industry for almost a decade and know first-hand the boundaries, obstacles, and false preconceptions that the industry faces. Gaining support, respect, and legitimacy for our industry takes a unified front to educate and advocate—which is why NCIA’s mission is so important to the future of the industry and my company. I ask for your support to continue to bring my knowledge, experience, and commitment to this process as a board member representing Good Chemistry.
Good Chemistry, a marijuana cultivator and dispensary located in Denver, has been a sustaining member of NCIA for over three years. I am a current board member representing Mountain Medicine – a marijuana-infused product company I founded – which is now an operating company of Good Chemistry.
As a board member of NCIA, I have been a strong supporter of NCIA’s Political Action Committee, which is critical to ensuring our voice is heard in Washington. I was also one of only five NCIA members involved in the association’s funding and hiring of Capitol Counsel — a high-level DC tax policy lobbying firm — to reform the federal tax burden our industry faces. As a passionate industry advocate, I frequently serve as an NCIA speaker to promote the benefits of our industry, participate in industry lobbying visits, and have given a presentation on the industry’s banking access issues at a Capitol Hill Staff Briefing in 2012.
As a board member representing Good Chemistry, I will continue to contribute my diverse perspective and lessons learned from my experience:
Founder and owner of a marijuana-infused product company that supplies Good Chemistry and over twenty other dispensaries
Chief Operating Officer of Good Chemistry, a medical and adult-use marijuana cultivator and dispensary
Key founder and Chair of the Cannabis Business Alliance, the policy voice for the marijuana industry in Colorado
Stakeholder in developing medical marijuana regulations in some states that have approved its use for medical purposes where Good Chemistry plans to expand
Spokesperson and advocate on behalf of the medical marijuana industry
Community relationship-builder to promote corporate citizenship
I pledge to work hard to improve the perception of the industry and to overcome the barriers that will make it a credible, sustainable contributor to the economy. Thanks in advance for your support.
A key mission of NCIA is ensuring equal access to banking. Cannabis providers must be afforded the same banking and financial services as any other legitimate business. NCIA has never had a board member with a background in banking and payment processing. I hope to assist NCIA in its efforts by applying my 14 years of banking and payment processing experience as a Certified Payment Professional. We face increasing governmental scrutiny and regulation as well as increased security and compliance requirements; I will strive to bring clarity to the myriad of rules and proposed legislation that has been thrust on our emerging industry.
Guardian Data Systems is a leading provider of electronic transaction processing and services. As a Sustaining Member of NCIA we center our business on assisting our clients to achieve their financial goals through the use of our leading payment processing tools and our financial relationships in the industry. We are also an advocate for our business in the industry and seek to help influence its direction by taking an active part in the legislation and laws that are being developed to shape our industry. Our team, some of whom have over 30 years in the banking and payment industry, actively monitors the merchant acquiring industry and provides leadership through education, advocacy, and the exchange of real information.
Payment professionals need to have unique knowledge of the cannabis industry as well as the challenges and laws shaping its future. They must identify pitfalls and unscrupulous providers, operations keeping business owners safe from prosecution or fines, products and solutions that help maximize their business potential, as well as risk, regulatory, compliance and security matters.
Guardian Data Systems is committed to the cannabis industry and to delivering the truth in this tumultuous growth period of the industry. A key question that we should be asking is “What can we do to protect our members and their businesses?” Guardian Data Systems hopes to help answer those questions as part of the NCIA board.
NCIA Board Candidate Statement – Erich Pearson (Incumbent)
By Erich Pearson, SPARC (CA)
Our mission at NCIA is to advance and legitimize our industry — through education, improving professionalism, advocating for sound regulations, developing new technology, leveraging each other’s strengths, and learning from mistakes.
We come from all areas of cannabis. Individually, we are sometimes competitors. Together, as members of NCIA, we play for one united team. On this platform, we not only celebrate our individual successes, we advance the industry as a whole through our singular voice.
Serving you on the NCIA board since its founding in 2010, I understand the business from seed to sale, from operations to regulations. I bring a high level of expertise to the board – as a cultivator, dispensary operator, and legislative advisor. I represent the largest state in the union, an internationally recognized dispensary and brand, and some of the most well-engineered cultivation projects in the world.
It takes a team to accomplish great things. That’s why I’m quick to augment my skills with respected experts. I recruited the founder of Peace in Medicine, now Sebastopol Mayor Robert Jacob, to bring SPARC to the next level. We now have a unified team, offer health benefits to our employees, and are expanding to better serve San Francisco patients.
To graduate from good cannabis to great cannabis, large-scale, I brought in Dr. Robby Flannery, Ph.D. and plant biologist. Dr. Robby built and leads our R&D team to optimize crop production via physiological and ecological research in collaboration with UC Davis, and with input from experts at University of Chicago and Cornell. Dr. Robby lends his expertise to the greater herbal community serving on the cannabis nomenclature working group and the cannabis committee of AHPA, the American Herbal Products Association.
And the team keeps growing. We’ve built global alliances by hosting tours at our facility – guests include the Board of the League of California Cities and legislators from Germany. We’ve joined forces with regulatory movers like DPA, MPP, and ASA. And through NCIA, my biggest team is you.
Thank you for doing the great work that’s gotten us this far. It’s been a pleasure serving you.
By Luke Ramirez, Walking Raven Retail and Medical Marijuana Center (CO)
As a board member of the NCIA I will advance the image of business people in the cannabis industry. Through activism and relentless networking with canna-business professionals of Denver, I was introduced to Aaron Smith and the NCIA three years ago. I knew that both of my companies would be joining a short time later. It was an easy decision after observing the organization’s commitment to professionalism and positive media image; they reflected the ideals my companies follow.
I have leveraged my company’s platform to further cannabis advocacy for business professionals, and I’ll use the board seat as further leverage to help our industry gain respect with mainstream businesses and government officials. Last year, my business, Cannabusiness School and Consulting, worked with the NCIA team, traveling to their symposiums in Chicago and Las Vegas, recording the symposium speakers and making their presentations available in an online format for those who could not attend. (http://cannabusinessschoolandconsulting.com/nevada/ and http://cannabusinessschoolandconsulting.com/midwest-symposium-ncia/)
My time spent traveling to cannabis events nationwide gives me the perspective of what our industry needs on a national level; not just the needs of my peers locally. I have been a contributor to charities such as The Leukemia & Lymphoma Society and the Harm Reduction Action Center; I’ve also contributed to groups such as Students for Sensible Drug Policy (SSDP), and the Campaign to Regulate Marijuana like Alcohol (Amendment 64). These activities are an effort to elevate the perception of the cannabis professional. My track record shows that I’m committed to elevating the image of the cannabis community, willing to volunteer my time and resources.
The reputation I’ve earned in our community as a dispensary owner comes from my ability to build relationships and get involved with multiple trade groups, both locally with groups such as the Marijuana Industry Group and nationally with the National Cannabis Industry Association. I am very much a team player, and interested in the image and longevity of our industry; you can count on me to make decisions based off our needs as a whole and not my business’s agenda. Don’t hesitate to ask folks in our industry!
I am running for a National Cannabis Industry Association board position to support the legalization of marijuana. I have seen and heard testimony from many sources as to the medical effectiveness of cannabis. With such overwhelming support for legalization seen across the country, and my desire to ease the suffering of persons in need through proven methods, I feel it is imperative I join forces with like-minded individuals to do my part.
I have been a part of the medical marijuana industry for over eight years. I am a co-founder and co-owner of Denver Relief and Denver Relief Consulting. Those businesses also have equity in Cannabis Talks and Extract Outfitters, all of which are members of NCIA. My relationship with NCIA goes back to the very beginning in early 2011, as Denver Relief is a founding member. Denver Relief also requires all the Colorado licensed vendors that we do business with to be members of NCIA.
For the past two years I have had the honor of serving NCIA as the Vice Chair and currently reside as Chair. During that time, I have brought more members to NCIA than any other individual or company. This numbers into the dozens. Between my business partners and myself, our member referrals are approaching fifty.
I have attended almost every NCIA event in Denver and have traveled to Nevada, Massachusetts, Oregon, California, Washington, and Washington D.C., all in the name of our organization. I have lobbied Congress on three separate occasions and represented NCIA and Colorado at congressional briefings with our elected officials on Capitol Hill.
My momentum is just getting started with NCIA. Much progress has been made in the past two years but much more needs to be done. I have focused much of my own time on the banking issues we face as an industry. I’ve worked hard to educate members of Congress about the difficulties we face as small business owners. I’ve urged our colleagues to join our ranks and help grow our organization so we can continue to make big steps in ending cannabis prohibition as we know it. With your vote, I can continue to work hard for all of us in the hopes that our cannabis businesses will one day be treated like any other regular business in the United States.
Mr. Siegel aims to help legitimize the cannabis industry through providing cutting-edge technology that brings transparency, accountability, and security to cannabis operations. The Department of Justice, in the fall of 2013, in summary stated that they would not interfere with state-approved cannabis activity should the state “build a strong and effective regulatory and enforcement system,” a key piece of which is a robust and accurate cannabis inventory and sales tracking system. The quality of Mr. Siegel’s cannabis traceability system for the State of Washington has catapulted both the technology and the conversation into the national spotlight—with both supporters and detractors of cannabis legalization expressing support for such a solution. In fact, demonstrations of the traceability system to U.S. congressmen and other high-level government personnel have garnered additional political support and catalyzed progress for the industry as a whole. (The 2/14/2014 Department of Treasury guidance regarding banking services to cannabis businesses was issued shortly after one such demonstration.)
Mr. Siegel’s technology is at the forefront of cannabis transparency, and he is seeking a seat on the NCIA board to bring his unique position and experience to serve the industry. BioTrackTHC’s position as the only company providing cannabis tracking services to both the private and public sectors and Mr. Siegel’s extensive experience in politics will continue to open many opportunities to further the industry’s forward motion. We wish to bring these new inroads to NCIA and to further the inroads NCIA already has.
The federal government is looking for ways to allow for financial institutions to do business with cannabis businesses while minimizing the risk of money laundering. BioTrackTHC has a solution. State governments need assurance that if they legalize cannabis in some form, they will have expert advice as to how to structure their market properly and in compliance with the DOJ’s guidance. BioTrackTHC is already providing that. Cannabis operators are looking for ways to show that they are responsible, tax-paying business leaders. BioTrackTHC can make that a reality.
