Driving High? Information From The CO Department of Transportation

Since Colorado became the first state to legalize recreational marijuana in 2014, the Colorado Department of Transportation (CDOT) has used its unique position to remain on the forefront of traffic safety campaigns for marijuana-impaired driving. CDOT recently launched its new Drugged Driving Colorado website, DriveHighDUI.com, which features telling insights, current data, and a lengthy list of resources to help inform not only Coloradans but marijuana consumers and industry professionals nationwide. As communication shifts to a heavy online focus amid COVID-19, providing accurate and detailed information from a distance is more necessary than ever.   

Consumer Education

Consumer health and safety are important to all cannabis businesses, yet information on driving impaired can be hard to come by. CDOT’s website has educational resources that answer commonly asked questions and provide data and downloadable social media graphics, videos, and more. CDOT encourages the free use of its resources and information for in-store screens, website education pages, email blasts, blog/newsletter posts, or at conferences and trade shows. 

Frontline Employee Knowledge

Budtenders, manufacturing representatives, and trade publications are the voices most trusted by cannabis consumers. Educating all staff can help dispel false perceptions of cannabis-impaired driving and help change behaviors around driving high. Learn the basics and keep up with the latest news on the Featured News section of DriveHighDUI.com. If you have industry news or an article idea, please reach out to CDOT Traffic Safety Manager Sam Cole at sam.cole@state.co.us.

Community Relations — Be A Valued Resource

Building relationships with the communities in which they operate is crucial to the health and wellbeing of the cannabis industry. CDOT has partnered with health care organizations, nonprofits, universities, and neighborhood groups to communicate the dangers of driving high. Affecting change takes cooperation — and cannabis companies can use these resources to open a dialogue with local, state, or national organizations to help spread the word. 

Impaired driving from alcohol and/or other drugs is one of the leading causes of traffic deaths on Colorado’s roads, accounting for approximately one-quarter of all fatalities. This is an issue that affects all of us. CDOT hopes its ongoing efforts to educate cannabis consumers extend beyond Colorado’s borders and we encourage NCIA members and industry organizations across the nation to take advantage of the available resources so we can lead by example and keep our communities safe.

 

Webinar Recording: Managing Novel Risks During The COVID-19 Crisis (Part 2)

Watch this webinar recording to learn more about managing novel risks during the COVID-19 Crisis.

A conversation with industry legal and financial experts discussing how cannabis operators can mitigate the financial risks presented by coronavirus.

Get actionable advice and insights regarding how to manage your financial risk and avoid pitfalls.

Topics addressed include:
Managing finances in a business deemed “essential”.
Navigating the legal, financial nuances of assistance programs.
Federal and State Financial assistance programs.
What aspects of these programs can cannabis businesses utilize?
Legal ramifications and implications of applying for assistance.
CARES Act, upcoming changes to SAFE Banking, and what they mean to you.
Frequently misinterpreted language in 280E.
What coronavirus teaches us about the import of proactive financial risk management.

The panel:
Summer Jenkins, CLCS, Senior Product Manager of Cannasure Insurance Services, LLC (Moderator)
Christopher Davis, Executive Director of the International Cannabis Bar Association (INCBA)
Michelle Rutter Friberg, Deputy Director of Government Relations at NCIA
Kevin Haller, CPA, Principal of Akene Consulting LLC

NCIA Today: May 2020 Episode – HEROES Act, #CannabisIsEssential, and New Fireside Chats for NCIA Members

Host Bethany Moore, NCIA’s Communications Manager and host of NCIA’s weekly Podcast ‘NCIA’s Cannabis Industry Voice‘ brings you an in-depth look at what is happening across the country in federal cannabis policy reform and with NCIA.


From the top, Bethany discusses the NCIA
#CannabisIsEssential movement, coordinating efforts between our communications, public policy, and government relations teams. We have been hard at work, exploring avenues for the legal cannabis industry to access federal COVID relief benefits, like including SAFE Banking language in the recent HEROES Act.

We check in with NCIA Deputy Director of Public Policy, Rachel Kurtz, to hear some of the recent highlights from our Allied Associations Program. Fortunately, most states have deemed cannabis as essential, and our state associations are working in their areas to make relief options, or commerce opportunities, easier to reach.

Kim Kovacs, President of the Arcview Group, checks in with Bethany to discuss the relaunch of their Women’s Investors Network. The cannabis industry leads on women in C-suite and leadership roles, but that doesn’t mean we can be complacent. ArcView has been offering regular webinars, and other digital programming options, for women energetic about entering the space. The next will be looking at the science behind the plant, join the conversation!

We’ll see you next month for NCIA Today!

 

Committee Blog: Employee Privacy Guidelines In A Time Of COVID-19

By NCIA’s Human Resources Committee 

Privacy Guidelines

As employers across the country bring back their employees, coronavirus risks remain top of mind. These concerns are important to ensure both the safety of their employees and the ability of their businesses to remain open. No one wants their employees to experience a spike in infections, or to subsequently close down as a result. However, protecting employees and businesses from COVID-19 is not as simple as asking an employee if they are sick. Federal and state laws restrict the type of medical information an employer can require an employee to share, even during the pandemic.

Under the Federal Americans with Disabilities Act (“ADA”) and the California Fair Employment and Housing Act (“FEHA”), medical inquiries are generally not allowed unless they are job-related and consistent with business necessity. Under this standard, medical inquiries are allowed if the employee poses a “direct threat” to him/herself or others because of a medical condition. FEHA regulations provide that factors to be considered when determining the merits of the direct threat defense include, but are not limited to:

  • the duration of the risk;
  • the nature and severity of the potential harm;
  • the likelihood that potential harm will occur; and
  • the imminence of the potential harm.

FEHA regulations say that the analysis of these factors should be “based on a reasonable medical judgment that relies on the most current medical knowledge and/or on the best available objective evidence.”

Unfortunately, this leaves the answer to whether employers may make medical inquiries or take temperatures “it depends.” Ultimately it becomes a business/risk tolerance decision. Asking employees questions about their medical condition and taking their temperatures may be more defensible if there has been documented exposure to COVID-19 in the workplace or a high rate of contagion in the community. 

The answer will also depend on what the Centers for Disease Control (“CDC”) determines. If the CDC makes a determination that COVID-19 is significantly more severe than the seasonal flu, it could pose a “direct threat.” Under the ADA, a direct threat is “a significant risk of substantial harm to the health or safety of the individual or others that cannot be eliminated or reduced by reasonable accommodation.” When the CDC advises testing, employers will have better standing to require it. CDC guidance is available here.

The Equal Employment Opportunity Commission has also issued specific COVID-19 guidance. The EEOC has advised employers that they may ask all employees who physically enter the workplace if they: (i) have COVID-19; (ii) have been tested for COVID-19; or (iii) are experiencing symptoms associated with COVID-19. Employers may also check the temperatures of employees entering the workplace. If an employee refuses to answer or refuses to submit to a temperature check, the employer may refuse to permit him or her to enter the workplace. However, employers should reassure refusing employees that the questions are simply designed to ensure workplace safety.

Employers may then single out individual employees for temperature checks or questioning only if the employer has a reasonable belief, based on objective evidence, that the employee has COVID-19 or symptoms associated with COVID-19. Employers may also ask employees if they have had contact with anyone who has been diagnosed with COVID-19 or who has symptoms of COVID-19.  

If a manager learns that an employee has COVID-19 or symptoms associated with COVID-19, the manager may disclose this information to which employees are necessary to take action consistent with CDC guidance. As a general rule, employers should try to limit the number of necessary employees” who know the employee’s identity. Everyone informed of the employee’s identity should be told to keep the information confidential. This includes telling others that an employee may be absent or working from home, but not explaining why.  

If employers do decide to take temps, there are multiple additional issues to consider: who will do the testing? What training? Will nonexempt employees be paid for their time undergoing testing? What will the employer do if the employee refuses? What information is recorded? All of these questions should be addressed in advance, and the answers should err on the side of caution. Tests should be simple, as non-invasive as possible, and as little data should be recorded as possible. Data for each employee should be recorded separately; an employer should not compile a single list of employees and their temperatures. An employer could, however, maintain a record of a single employees’ temperature of time. In other words, a single piece of paper could track an individual employee’s temperature history, but not the entire workforce’s temperature history.

In summary, employers must be careful to ensure their employees’ privacy rights remain respected and protected as they return to work. Employers may take reasonable precautions to ensure infected and at-risk individuals do not work, but must be careful in the questions they ask and the manner in which they record and keep the information. If a diagnosis is confirmed, employers must also be careful about who that information is shared with. Everyone wants a safe workplace; employers must simply keep in mind that a safe workplace is one that ensures an employee’s physical safety as well as their privacy.  


NCIA’s Human Resources Committee is comprised of human resource practitioners devoted to bringing best practices to the cannabis industry. Their focus is educating and bringing awareness to misclassification of employees, promoting guidelines for employee safety, clarification on wage and hour issues in the industry and creating checklists to being a legitimate employer.

Member Blog: Off The Backburner – Compliance During COVID-19

by Mark Slaugh, CEO and Co-Founder of iComply, LLC

Operational cannabis compliance has been a vital but often ignored part of many owners’ guides to success. With the hustle and bustle that is the ever-expanding nature of the cannabis business, most owners and operators want to believe they are compliant 100% of the time. 

However, anyone who owns a cannabis business and is honest with themselves knows that to understand the constantly changing regulatory updates is a constant challenge. Often, the needs of the business outweigh the time it takes to assess the best ways to remain compliant. Too often, the distractions of growing the brand, networking, and conferences distract us from what’s happening with staff, procedures, and operations behind the scenes. 

This has become alarmingly evident during COVID-19.

The pandemic began affecting how different operators in different States had to adjust various emergency procedures and restrictions on how cannabis could be bought and sold. From there, pandora’s compliance box released a torrent of issues to look at.

In our experience, 95% of the industry has a reactive approach to compliance management and will scramble to take time and pay expensive attorneys fees to dig them out of trouble once they are caught. 

And what you resist, persists.

During COVID-19, owners are already making procedural adjustments to remain compliant and are staying at home for a change – which has allowed them and their teams more focus and less distraction by avoiding conferences, travel, and in-person meetings as much as possible. 

What they are finding is that the compliance train has been off the tracks for a while.

Naturally, as the industry grows, so does the responsibility of mitigating liability and staying on top of the backburner projects in dealing with compliance. It is not the sexiest or most fun aspect of the industry (if you aren’t compliance nerds like us). 

People tend to resist being honest about it, managing it appropriately, or holding others accountable until it’s too late. 

COVID has at least provided some breathing room for owners and operators to put on their facemask and dust off their SOPs or untangle the strings around poor inventory management.

Some cannabis companies are asking themselves how they can use the boredom of COVID-19 (to some degree) and the extra time saved from travel, conferences, and meetings to re-examine their operational compliance infrastructure. 

We are finding that owners in the cannabis industry are lacking a transparent cannabis compliance plan that can be easily adjusted to stay ahead of regulators, rules, and to mitigate product liability. They lack accurate employee training to specific procedures with accountability and wonder why turnover is so high. They are starting to realize that inventory, books and records, and daily compliance management are creating more risk than is tolerable for a tangible reward. 

The word “decimation” comes from the Roman times and was considered a military punishment in which squads of 10 (deci) would draw stones from a bag. One black stone among the white ones meant beating that soldier to death by his fellows. While extreme, the lesson was an important one and is still relevant in the cannabis industry today.

Out of every inspection by the MED, in Colorado, around 10% of licensees were found in violation and administratively punished. Having come from a banking risk management background, it is shocking to see that level of risk be “ok” with most operators. 

No other heavily regulated industry tolerates such a high level of risk. Cannabis, in fact, tolerates 10x more risk loss on average than is acceptable in banking (less than 1%).

Some of the biggest backburner projects in compliance coming to the forefront are:

SOPs and Employee Training Manuals

It is crucial to have compliant procedures that are accurate to current operations. One cannot effectively and proactively run a cannabis company without valid and accurate Standard Operating Procedures and related documents. They are essential. 

What we find is that most established operators have to dust these SOPs off from whatever shelf they placed them on when they finally come around to looking at them. 

Inventory and METRC

Another big problem area is inventory inaccuracies which require regular reconciliation and clean up. As we all know, once the snowball effect of inaccuracy happens, it simply gets more entangled and difficult over time.

During COVID-19, regulators are doing fewer in-person visits and are relying more on their ability to look at seed to sale tracking systems to identify potential non-compliance to conduct their inspections and request specific information from operators.

Books and Records

Most cannabis companies think SOPs, audits, and inventory are compliance management in a nutshell. The detailed accountability over files, logs, and forms often escapes their mind as soon as the file is saved or placed into the file cabinet. 

Like dusting off SOPs, opening the file cabinet to ensure the accuracy of these documents can be best done during COVID-19 as well. Insight to this helps improve procedures and ensure accountability of staff members from visitor logs, to pesticide applications, incident reports, and manifests.

Staff Knowledge

For many of our medium to large clients, COVID-19 has affected their staff members. When one person is infected, many others may not want to come to work, and companies are forced to hire in additional labor to meet operational demand. If this hasn’t happened, consider you might want to be prepared for it as it takes away employees for a minimum of 2 to 4 weeks. 

COVID-19 is causing a wide gap due to faster training requirements and creating more risk for non-compliance, product liability, and workplace safety without proper education, knowledge and accountability for staff.

Challenges like COVID-19, rule changes, and human nature are greatly mitigated and proactively managed when cannabis companies commit to taking compliance off the backburner and putting it at the forefront. Taking the time now to do so may be better than any other time for experienced operators to better prepare for “normalcy” when it returns. 

An ounce of prevention is literally worth pounds of cure. And, during COVID-19, cannabis companies would do well to prevent the “decimation” of their very valuable licenses and operations by taking advantage of the extra time and energy to do the heavy lifting necessary to take compliance off the backburner.


Mark Slaugh, CEO and owner of iComply, works in the specialist sector of compliance for the medical, retail, and hemp industries and has over 12 years’ experience in cannabis industry development, consulting, and operational compliance and over 21 years’ experience in regulations and risk management. 

Due to his extensive background and education, Mark knows what it takes to move markets forward at political, policy, and operational levels. He has developed small and large startups, improved existing operations, and has protected some of the top companies in the field.

iComply provides operational compliance services and validation of over 200 cultivation, manufacturing and processing, and dispensing facilities since 2011 and iComply consults for a variety of communities, organizations, and governments. Engaging in legacy projects over the long-term, iComply builds trusted relationships to ensure industry integrity, standards, regulations, and best practices are implemented and adhered to within organizations. 

 

 

 

Committee Blog: Cannabis and COVID-19 – A Legal Perspective

By Sahar Ayinehsazian and Kelsey Middleton, Vicente Sederberg LLC
NCIA’s Banking & Financial Services Committee

As the COVID-19 pandemic continues to alter the day-to-day lives of humans across the globe in an unprecedented fashion, industries have made considerable adjustments to maintain their operations while protecting the health and safety of the workforce and the public. While some industries have had to cease operations to comply with “stay-at-home” orders, most states regulating cannabis have deemed cannabis essential, allowing cannabis businesses to continue operations during the COVID-19 quarantine period. The fact that cannabis was deemed essential in states such as California, Colorado, Illinois, and Michigan, demonstrates a major shift in public perception of cannabis and its utility. While challenges remain as they do for all industries, the cannabis industry appears poised to withstand the pandemic and to solidify its role in the economy. 

Despite being deemed essential, adult-use cannabis sales have begun decreasing in states such as California, Colorado, and Nevada. Washington, however, reported record sales in April highlighting the diversity of legal markets throughout the United States. States that derive considerable sales for cannabis tourism like Nevada and California may see losses due to travel restrictions and mandatory self-quarantine periods. Although early sales reports suggest that the industry is equipped to weather this crisis, April sales only reflect the market one month into the pandemic that is likely to extend through the summer and potentially into next year. Thus, much remains unknown about the industry’s potential to stave off the impacts of an increasingly likely economic recession. Still, reports show that demand for cannabis remains strong and could potentially increase as the nation grapples with the significant financial and emotional duress associated with the pandemic. 

States have taken proactive measures to ensure that patients and customers may safely access cannabis. States including California and Nevada have issued official guidance on best practices for cannabis businesses to observe to mitigate the spread of infection and preserve and promote public health. This guidance has largely prioritized the reduction of person-to-person interaction and adherence to heightened sanitation and hygiene protocols. Best practices for reducing person-to-person interaction include conducting sales by pick-up or delivery where possible, reducing the number of individuals allowed at the dispensary at any one time, and controlling the flow of visits to reduce the potential for exposure. Retailers have used space indicators like chalk, tape, and stanchions to demarcate 6-feet of separation between customers standing in line. Best practices for maximizing sanitation and hygiene include the promotion of contact-free systems such as tap-and-pay payment technology where possible, and the removal of handheld menus, tablets, and iPads, and aroma jars from dispensary surfaces. Retailers are advised to clean and sanitize commonly touched surfaces on a routine basis and to provide hand sanitizer to all employees and patrons in conspicuous locations to encourage frequent sanitization. Additionally, employers are required to monitor their employees’ health and hygiene practices. Employers should require any employer showing a COVID-19 related symptom to stay home from work. 

While some businesses can rely on federal stimulus programs such as SBA loans for COVID-19 related relief, cannabis businesses cannot. Despite being equally harmed by the pandemic as other law-abiding, tax-paying small business operators, cannabis operators are ineligible for such funding because the cultivation and sale of cannabis remains illegal under federal law. While cannabis businesses are not currently eligible for federal relief programs, it appears that cannabis businesses may be eligible to defer the deposit and payment of their share of Social Security tax. 

Nonetheless, as further proof of the growing bipartisan support for cannabis, multiple senators and congress members have requested that future COVID-19 relief packages include accessibility for cannabis businesses. One of the main reasons cited has been the cannabis industry being deemed “essential,” thereby allowing it to provide much-needed support to various states’ economies. 

While the details of a post-COVID-19 world remain to be seen, one thing is clear – cannabis will continue to play a growing and important role in the U.S. economy.  


Sahar Ayinehsazian is an attorney in Vicente Sederberg‘s Los Angeles office, where she focuses on corporate transactions, cannabis banking, and regulations. With her specialized knowledge, Sahar helped to establish and currently co-leads Vicente Sederberg’s Banking and Financial Services Department. As a member of the National Cannabis Industry Association’s Banking Access Committee, Sahar also works on strategy and educational advocacy to enable state-licensed businesses to obtain accounts at depository institutions.

 

Kelsey Middleton is a Regulatory Specialist in Vicente Sederberg’s Los Angeles office, where she focuses on licensing and regulatory compliance. Kelsey is responsible for assisting a dynamic range of cannabis clients in obtaining state and local cannabis licenses, permits and approvals, and navigating the complex and rapidly evolving regulatory landscape of the cannabis industry. She routinely helps clients prepare the requisite applications and documentation for state and local licensing and permits, and facilitates communications with cannabis industry regulators to promote efficiency and compliance throughout the licensing process.

 Prior to joining VS, Kelsey interned at the Los Angeles Department of Cannabis Regulation where she analyzed proposed cannabis legislation and approaches for enhancing the efficacy of cannabis social equity programs. 

 Kelsey obtained her Juris Doctor from the UCLA School of Law, where she was the Co-Founder and Co-President of the Cannabis Law Association, and External Relations Chair of the Black Law Students Association.

 

 

 

 

 

Webinar Recording: Good Manufacturing Practices in the Age of COVID-19

Tune in to this webinar recording from Wednesday, April 15, 2020. As the realizations of the Coronavirus sink in, one thing is certain – cannabis companies need to be leveraging good manufacturing practices, otherwise known as GMPs. GMPs are the practices required in order to conform to the guidelines recommended by the Food and Drug Administration (FDA). The FDA is the public health agency in the United States that controls the authorization and licensing of the manufacture and sale of food and beverages, cosmetics, pharmaceutical products, dietary supplements, and medical devices. While many companies in cannabis are already following these guidelines, some are not.

This panel explores the GMPs themselves, how companies can become compliant, how GMPs can be amplified to make certain that we are preventing the spread of COVID-19, and whether there are extra precautions that should be taken to keep cannabis consumers safe.

Panelists:

Andrew Kline, Director of Public Policy
National Cannabis Industry Association

Haley Brandsgard, Senior Quality and Compliance Manager
Mary’s Brands

Alena Rodriguez, Managing Director
Rm3 Labs

Trevor Morones, Founder
Control Point

Jen Komerda, Quality Assurance Manager
Wana Brands

SAFE Banking Provision of Federal Relief Package Approved in House, Faces Difficult Path in Senate

by Morgan Fox, NCIA’s Director of Media Relations

It’s been a busy week for NCIA in our nation’s capital as we try to make sure the industry can survive the pandemic and continue to develop and thrive once the country begins to focus on recovery.

Earlier this month, NCIA and a coalition of advocacy and industry groups sent a letter to Congress urging them to include the SAFE Banking Act in the next stimulus package. We worked diligently with allies and our champions in the House to this end, reminding lawmakers that this legislation was approved with an overwhelming bipartisan majority in a stand-alone bill last September and that the pandemic was creating even more need for cannabis businesses to be able to access banking services immediately.

Last Tuesday, we got our wish: cannabis banking language identical to that passed in the House last year was included in the latest COVID-19 relief package, known as the HEROES Act. 

Unfortunately, the partisan backlash to the Democrat-backed legislation was almost immediate, with some lawmakers opting to use this necessary and nearly revenue-neutral provision of the legislation as a punching bag and a symbol of overreach in the lower chamber. Republican lawmakers decried things as irrelevant as the number of times the word “cannabis” appeared in the language and claimed that this provision did not belong in a COVID-related bill. Senate Majority Leader Mitch McConnell even complained about a section of the bill that would study diversity in cannabis banking access and cost a practically infinitesimal percentage of this roughly $3 TRILLION stimulus bill.

This misdirected vitriol was thankfully not enough to block cannabis banking reform from moving forward. On Friday, the House approved the HEROES Act with the SAFE Banking language included!

The public health and safety benefits of allowing cannabis banking are undeniable. Our industry employs hundreds of thousands of Americans and has been deemed ‘essential’ in most states. Forcing the majority of them to deal almost entirely in cash puts workers at risk of infection from the cash they are handling. It makes the social distancing that is so important to getting this pandemic under control much more difficult and increases the danger for workers and consumers, particularly immunocompromised patients. The public safety concerns regarding cash being a target for crime will only grow as unemployment rates increase around the country.

The economic benefit to post-COVID recovery is clear as well. Lack of access to banking and other financial services will ensure that the cannabis industry – which has been exemplary in providing continuous healthcare, preserving jobs, and generating much-needed tax revenue during this disaster – recovers at a significantly slower pace than other industries. We deserve fair access to the financial systems utilized by every other legitimate industry.

Make no mistake: this is a big step forward for cannabis policy reform. But now comes the hard part – convincing the Senate to support this legislation. With or without cannabis banking language, all signs point to an uphill battle getting the Senate to consider any additional coronavirus relief spending. But that’s all the more reason to redouble our efforts, and support continues to grow. This week, a bipartisan group of 34 state attorneys general added their voices to the chorus calling for cannabis banking reform.

And with the chances for direct access to federal relief funding looking increasingly slim, it is absolutely vital that we do everything we can to push this legislation forward. 

Please contact your senators today and ask them to support the HEROES Act with the House-approved cannabis banking provisions.

 

CALL CONGRESS NOW

Webinar Recording: Communications Strategy During Times of Crisis and COVID-19

In case you missed it, watch this webinar recording from April 8. With the cannabis industry customer acquisition and service models disrupted by the pandemic, it’s critical to understand that what you do today will affect your business now and have a large impact on your future. Adjusting communications to focus on brand and strengthening bonds with existing customers will help you minimize damage and promote future growth.

In this webinar, crisis experts Jeanine Moss (Chair of NCIA’s Marketing and Advertising Committee) and Nicole DeMeo of Outfront Solutions will outline immediate and practical steps you can take to address crises before, during, and after they’ve occurred. They will provide specific recommendations for the cannabis value chain including cultivators, manufacturers, distributors, retailers, and ancillary businesses. Learn how to build trust and brand loyalty in times of crisis with customers, employees, directors, shareholders, and vendors so you come through with a strong platform for growth and knowing you’ve done all that you can for your stakeholders.

Webinar Recording: #CannaBizSummit Speaker Series – Hacker-Proof Your Remote Operations

In case you missed it, watch this webinar recording from Monday, April 27. As companies reacted to the workplace changes COVID-19 required, many cannabis companies made rapid decisions to work-from-home, added curbside pickup, and enhanced delivery services. These decisions lead to additional security risks, and with hackers targeting companies more aggressively, these risks must be addressed to ensure business continuity.

In this webinar, GeekTek CEO/CTO Eric Schlissel and his guest Sophos Cyber Security subject matter expert Joey Ellison will discuss the current state of remote work, what to expect in the future and how to improve your organization’s security posture, moving from reactive to proactive protection. Intended for a non-technical audience, attendees will leave with clear next steps to improve their cybersecurity with minimal effort.

Speakers Include:

Eric Schlissel, CEO & CTO
GeekTek

Joey Ellison, Sr. Cyber Security Engineer
Sophos

A (Mostly) Non-COVID-19 Legislative Update

by Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations

I don’t know about you, but it seems no matter where I look, everything is about COVID-19. And with good reason — many of us are still working from home, helping their families with distance learning, and overall dealing with the effects of the virus. That being said, this week I wanted to take a look at two pieces of cannabis legislation — non-COVID related — and update you on where things stand, since we’re already nearly halfway through 2020! 

The SAFE Banking Act

Last September, the SAFE Banking Act became the first piece of cannabis reform legislation to ever pass out of the United States House of Representatives by an astounding bipartisan vote of 321-103. The first iteration of the bill, named the Marijuana Businesses Access to Banking Act, was introduced to the 113th Congress back in 2013 and has made a long journey to get to this point in the legislative process.

Now that the SAFE Banking Act has passed the House, its journey has continued in the more conservative, Republican-controlled Senate. However, just before Christmas, Senate Banking Committee Chairman Mike Crapo (R-ID) issued a press release detailing his opposition to cannabis policy reform — including the SAFE Banking Act as it’s currently written. In the release, Chairman Crapo said, 

“I remain firmly opposed to efforts to legalize marijuana on the federal level, and I am opposed to legalization in the State of Idaho. I also do not support the SAFE Banking Act that passed in the House of Representatives. Significant concerns remain that the SAFE Banking Act does not address the high-level potency of marijuana, marketing tactics to children, lack of research on marijuana’s effects, and the need to prevent bad actors and cartels from using the banks to disguise ill-gotten cash to launder money into the financial system.” 

Even now with COVID-19, NCIA is virtually lobbying for the SAFE Banking Act, or some of its provisions, to be included in the next coronavirus relief package. Before COVID-19, the all-cash situation cannabis businesses face created an unnecessary public safety risk and undue safety burden on state and local tax and licensing authorities who must receive and process large cash payments. Now, as recent reports show that viruses can live on cash for up to 17 days, the public safety concerns of this cash-only system compound. The lack of access to financial institutions places industry workers, government employees, and the public-at-large at risk as banknotes circulate from consumers and patients to businesses to government. 

NCIA is continually working with Sen. Crapo, congressional and committee staff, coalition partners, and the bill’s cosponsors to ensure that all parties have the materials and information that they need in order to solve this pressing public safety– and now, public health– issue and pass the SAFE Banking Act into law!

The MORE Act

In November, by a vote of 24-10, the House Judiciary Committee approved the Marijuana Opportunity Reinvestment and Expungement (MORE) Act of 2019, or H.R. 3884. This bill was introduced by House Judiciary Committee Chairman Jerrold Nadler (D-NY) and currently has 73 cosponsors. This was the first time that a congressional committee held a vote on – let alone approved – a comprehensive bill that would make cannabis legal. Perhaps even more significantly, this bill recognizes and works to address the disproportionate impact prohibition has had on marginalized communities and people of color while helping to increase access and opportunity in the legal cannabis industry.

The bill still has a long way to go, though. While the House Judiciary Committee has passed the legislation, there are still six more congressional committees with jurisdiction over the bill, including the Energy and Commerce, Agriculture, Education and Labor, Ways and Means, Natural Resources, and Oversight and Reform committees. In January, the House Small Business Committee waived its jurisdiction over the MORE Act.

While the MORE Act does not contain an explicit regulatory structure for cannabis after it is descheduled, Chairman Nadler said in a press conference the day before the markup vote that it was possible amendments could be added to the bill as it moves through the House. 

All that being said, it’s unclear what Congress’ schedule will look like for the rest of the year. The Senate returned to Washington yesterday, however, the House remains out of session as concerns about legislating in the age of COVID-19 remain. On top of that, 2020 is an election year, which complicates matters (and scheduling) even more. Regardless, I hope you can rest assured knowing that NCIA’s government relations team is working around the clock to advocate for the cannabis industry — whether that be banking reform, ending cannabis criminalization, or allowing for SBA relief. From D.C. to wherever you are, stay healthy! 

Member Blog: Cannabis Dispensaries Are Essential Businesses – Transforming How Cannabis Businesses Operate 

by Nina Simosko, Chief Revenue Officer, Akerna 

The COVID-19 pandemic has drastically changed how businesses operate and how people interact with one another. For many individuals, one of the greatest changes is living under “shelter-in-place” orders. The restrictions put in place have resulted in the closure of businesses that just a few weeks ago, many of us assumed would be open. The impact of COVID-19 on the cannabis industry has been dramatic, and the regulations and designations put in place over the past six weeks have altered the way cannabusinesses interact with their patients, as well as the way they are perceived as part of the larger healthcare conversation. The increasing adoption of technology solutions will continue to define the evolution of the industry long after the COVID-19 crisis has passed. 

Dispensaries As Essential Businesses 

Shelter-in-place has expanded across the country at a similar rate to the virus itself. When officials from states like California and Colorado issued these orders, cannabis dispensaries were initially not designated as an essential business. Due to public outcry, however, these initial orders were reversed. Dispensaries were classified essential and critical, joining other vital businesses like grocery stores, pharmacies, banks, and gas stations.

This distinction of dispensaries — medical, recreational, or both, depending on the state — as an essential business reflects how the cannabis industry and retailers are evolving to become a key part of the health infrastructure. Medical marijuana is a $5 billion industry with around 2,000 retailers serving more than two million patients nationwide. Among them are patients fighting cancer and using cannabis to manage their symptoms, veterans working to manage post-traumatic stress syndrome and those being treated for severe forms of epilepsy, Dravet syndrome, and Lennox-Gastaut syndrome.  For patients like these, the cannabis industry plays an important role in their day-to-day health. 

According to our research, cannabis sales have increased by 19.2% during the COVID-19 pandemic. Additionally, between March 11 and March 31, online ordering increased by 355%, delivery sales went up by 280% and pickup orders increased by 118%.

Modernizing the Cannabis Industry’s Way of Distribution 

As demand continues to grow, cannabis dispensaries must adapt and adjust their operations in order to be compliant with the CDC’s guidelines for social distancing. For some business owners, this can be challenging, as historically, most cannabis dispensaries have sold and delivered product in-person and in-store with cash payments. In this “old way” of doing business, budtenders played an important role in helping customers, as they are trained to listen and discuss the most suitable products for each individual.

The reality of today’s world is forcing a shift in how businesses operate, moving from the traditional “in-person” model and embracing digital transformation for online menus, ordering, and delivery. Dispensary owners need to ask themselves: how with the aid of technology can they differentiate their products, and how can they engage and educate new and existing customers? As an essential business, how can cannabis dispensaries embrace the “new ways” of operating?

Through the integrated use of technology, business owners can keep up with the changing landscape to connect and engage with customers through:

  • Offering online video budtender consultations to replace in-person meetings 
  • Providing online menus with robust product descriptions, improved merchandising, and bundled offerings around specific themes such as ‘sleep’ or ‘calming’
  • Developing targeted email and text messaging campaigns customized for individual customers to educate them on new product information
  • Guaranteeing secure, electronic payments

While industries across the board are embracing digital transformation, the cannabis industry now has an opportunity to fast-track its way there – and in time, this is what will enable cannabis business owners to thrive while protecting the health and safety of the community.


Nina Simosko serves as Chief Revenue Officer for Akerna, a global regulatory compliance technology company in the cannabis space. Akerna’s companies and investments also include MJ Freeway, Ample Organics, Last Call Analytics, Leaf Data Systems®, solo sciences, and ZolTrain. 

With more than 20 years of technology industry experience, she has spearheaded strategic innovation initiatives for global Fortune 100 companies including Oracle, SAP, and most recently, NTT Group. Nina oversees both Akerna and MJ Freeway’s revenue generation streams, builds strategies to drive revenue growth, and plays a pivotal role in aligning revenue generation processes across the Akerna organization

Previously, Nina was President and CEO of NTT Innovation Institute Inc. (NTTi3), the prestigious Silicon Valley-based innovation center for NTT Group, one of the world’s largest ICT companies. Prior to NTT i3, Nina was responsible for leading the creation and execution of Nike Technology strategy, planning and operations world-wide. At SAP, she was the Senior Vice President of SAP’s Global Premier Customer Network (PCN) where she led both the PCN Center of Excellence and SAP’s Global Executive Advisory Board. During her eight-year tenure, she was a part of SAP’s Global Ecosystem & Partner Group which was charged with continuing to build and enable an open ecosystem of software, service and technology partners together with SAP’s communities of innovation. 

Ms. Simosko currently sits on the Advisory board at Santa.io, AppOrchid and Reflektion and she has also been a member of the advisory boards at Appcelerator and Taulia.  

Nina can be found on Twitter and LinkedIn

The changes around ordering, delivery, payment, patient education and promotion are here to stay. With more than 70 integrated partners, MJ Platform offers clients the advanced technology solutions that are becoming increasingly important to the industry as we work through these challenging times, and that will define the future of cannabis in the months and years to come.  

 

Committee Blog: First The Vaping Crisis, Now COVID-19 – A Cannabis Physician’s Perspective

by Cynthia Shelby-Lane, MD
Member of NCIA’s Scientific Advisory Committee

The vaping crisis was first reported in June 2019. In October 2019, the U.S. Centers for Disease Control and Prevention (CDC) coined a new medical term describing the cases of severe pulmonary disease that have occurred among e-cigarette and vape users, E-Cigarette and Vaping Associated Lung Injury, or EVALI. EVALI’s primary cause was determined by the CDC to be vitamin E acetate contamination, mostly in illicit market vaping products, although research into this condition continues.

By the early fall of 2019, the National Cannabis Industry Association (NCIA) formed a Safe Vaping Task Force to respond to the crisis. Together with NCIA’s Policy Council, they released a white paper in January 2020 detailing information about vaporizer components, formulations, testing, governmental response, and recommendations for the industry. 

As the COVID-19 health pandemic takes front and center stage on the world scene, vaping related issues and EVALI, becomes even more of a health concern as the novel coronavirus causes respiratory issues. While reported cases of EVALI are slowing down, this public health crisis still looms over us,  and it’s been very challenging to fully solve this mystery illness associated with vaping e-cigarettes, and other electronic nicotine delivery systems (“ENDS”). Furthermore, it’s been more difficult to stop the primary root cause: the illicit market.

VAPING, EVALI, AND COVID-19

We’re experiencing a worldwide public health crisis with coronavirus and it’s also affecting the Marijuana industry, as we face “stay at home” orders, slower production or reduced access in some areas, and fear from the community about vaping related respiratory illnesses, EVALI, and death due to COVID-19. It begs the question:  Is vaping safe and could vaping put you at greater risk of severe illness during this coronavirus pandemic?

Some health experts say vaping can increase the risk of developing COVID-19 complications and spreading the virus to others because many people share vaping devices. A Bloomberg article was published last month, stating the FDA says “vaping could compound health risks tied to virus.” The Attorney General of Iowa along with scientists sent the FDA a letter commenting that they should be more careful giving advice at a time like this, especially given “the pronounced difference in risk between smoking and vaping.”

The Food and Drug Administration (FDA) has supported both positions on vaping but now says there is a lack of evidence to support the worsening of health in conjunction with vaping and COVID-19, while also considering that underlying conditions could be the real culprit.

According to the CDC, those with chronic lung disease are at higher risk for severe illness. The conditions listed with the CDC do not include EVALI, but perhaps vaping behaviors should be considered when determining risk. I am a member of Doctors for Cannabis Regulation (DFCR), an organization that supports the legalization and use of cannabis. DFCR cautions against smoking and vaping during the COVID-19 pandemic because we just don’t have enough research yet.

After reviewing the limited literature, it must be noted that “e-cigarette use” and vaping have cardiovascular risks. Buchanan and colleagues reviewed the limited available preclinical and clinical data and concluded that “E-cigarette use is associated with inflammation, oxidative stress, and haemodynamic imbalance leading to increased cardiovascular disease risk.”  Current evidence is available primarily from acute studies and the effects of chronic exposure remain an urgent research question.

PERSONAL PHYSICIAN RESPONSE

As an emergency physician, functional medicine specialist, and medical cannabis doctor, I’ve examined, certified, and managed patients for medical marijuana use in Michigan since 2014. As a cannabis physician, I routinely review cannabis-related science and research and its therapeutic effects, based on forms of consumption, frequency of use, and limited data on patient dosing. I evaluate patients for their therapeutic benefits and patient outcomes obtained by using marijuana in various forms of consumption, in conjunction with their other medications.   

As a cannabis physician, I work very hard to get to the source of my patients’ medical issues or problems related to their medical need for cannabis. This also means giving them direction about the use of cannabis, cannabis products, and noting any side effects related to their method of consumption and use of marijuana, hemp, and CBD.

Perceiving the same thing as the general public, my patients frequently say, “I thought vaping was safe.” This is still the case even during this ongoing public health crisis with EVALI and now, COVID-19.  

Pertinent health questioning should always involve asking patients about their forms of usage of cannabis, their daily intake, and noting if a person has any side effects related to cannabis usage or any other medications. Since vaping related illnesses were first reported, I continue to educate patients about the possible side effects of vaping. For some people, problems related to vaping may have been present since they started vaping, but were disregarded because they thought it wasn’t serious or of much concern. We need more research to better inform educational programs so patients and consumers can make better-educated decisions on which marijuana products they should use.  

HEALTHCARE, THE CDC. AND COMMUNITY RESPONSE

“Do you vape? Do you smoke? Do you have an underlying lung disease such as asthma, chronic obstructive pulmonary disease (COPD, e.g. emphysema), heart disease, or any respiratory problems?” These are the most important questions doctors and healthcare providers should ask patients who present with respiratory symptoms, especially during the worldwide COVID-19 pandemic. All healthcare providers, whether on the frontlines or not, must change their assessment of patients to ask about their lifestyle and any respiratory-related health conditions (past and present). This includes addressing smoking, vaping, and potential side effects.  

Patients often delay seeking treatment and the biggest challenge doctors face is that patients might lie about vaping out of fear they will be identified publically or criminally charged if they procured their vaping products from the illicit market. Doctors and other health care providers need accurate information to make a diagnosis and should maintain a non-judgmental attitude and confidentiality when asking patients about their lifestyle and social history.

Detailed information has been created by the CDC for ongoing updates regarding EVALI and related illnesses. Specific information for healthcare providers can be found here.

New tools for physicians include an updated algorithm for the management of patients with suspected EVALI and a Discharge Readiness Checklist. These documents are recommended for use by doctors, hospitals, clinics, and health care professionals and should be followed to help with systematic care and prevention. These tools have been used for EVALI.  There have been major updates since the COVID-19 pandemic as of December 2019.

THE FUTURE OF EVALI: CONTAMINANTS AND CONSUMER RESPONSE

According to the CDC and available data, it appears that vitamin E acetate is primarily associated with EVALI, but there could be other substances that are responsible. We now know the illicit market is using vitamin E acetate to dilute their products, but they could use other harmful chemicals in the future. To reduce the risk of lung injury, consumers should purchase vaping products from the regulated market, where products are tracked and tested. 

Because there is still so much research to be done, I recommend that anyone who continues to use e-cigarettes or vaping products should monitor themselves for symptoms related to EVALI and see a healthcare provider as soon as possible, especially if you are experiencing the symptoms below.

  • Patients have reported symptoms such as:
    • Respiratory symptoms, including cough, shortness of breath, or chest pain;
    • Gastrointestinal symptoms, including nausea, vomiting, stomach pain, or diarrhea; and
    • Nonspecific constitutional symptoms, like fever, chills, or weight loss.
    • Exposure to COVID-19, testing positive or hospitalized and placed on a ventilator
  • Some patients have reported that their symptoms developed over a few days, while others have reported that their symptoms developed over several weeks.

The American College of Cardiology also released Cardiac Guidelines for cardiac implications of COVID-19, which may mimic respiratory symptoms.  

As I mentioned earlier, the FDA previously stated that vapers were at an elevated risk of developing complications tied to COVID-19.  However, the FDA also admitted there is actually no “evidence” that vaping makes COVID-19 outcomes worse as noted in this article outlining the FDA’s stance on vaping and COVID-19.

So the jury is out and we are still waiting for evidence on the long term safety of vaping. As a member of NCIA and the Scientific Advisory Committee, I believe that vaping and it’s long term effects due to acute and chronic exposure remains an urgent and ongoing research question. Is vaping safe, does vaping cause higher risk if you contract the novel coronavirus, and do synthetic flavorings, diluents, or possible contaminants within vaping devices cause harm? More research is warranted.

 

From The Hill: The Emergency Cannabis Small Business Health and Safety Act

by Morgan Fox, NCIA’s Director of Media Relations

Legislation to give legal marijuana businesses, which have been declared essential in a majority of states with regulated cannabis markets, access to resources being made available by congressional COVID-19 emergency response packages was introduced in the House of Representatives last week by Rep. Earl Blumenauer (D-OR) and Rep. Ed Perlmutter (D-CO). 

The Emergency Cannabis Small Business Health and Safety Act would stop cannabis businesses and those that provide services to them from being excluded from further federal relief funding provided through the Small Business Administration (SBA).

Specifically, this bill would impact the following programs: Paycheck Protection Program (PPP), Economic Injury Disaster Loans (EIDL), and EIDL emergency grants. It would also protect SBA employees from prosecution for administering relief funds to cannabis businesses.

The full text of the bill is available here.

Under current policy, businesses that deal directly with cannabis production and sale, as well as many that provide services to them, are ineligible for most SBA programs. And the definition that the SBA uses to define which ancillary businesses are eligible is very vague. You can find a useful primer on federal relief eligibility from our friends at Vicente Sederberg LLP.

Let’s be clear: the fact that many cannabis businesses have been permitted to remain operating during this difficult time will not be enough to sustain the industry or allow for an effective and timely recovery once this nightmare is behind us. Lack of access to federal funds is just one of the many stressors facing cannabis businesses, which is why it is vital that we become eligible for relief as soon as possible.

Many indirect businesses have not been declared essential and have been forced to close. Cannabis businesses that have remained open must contend with declining sales, supply chain disruptions, onerous tax rates, lack of access to banking services, and the costs incurred by implementing additional health and safety measures to protect employees and customers.

Thankfully, the chorus of voices calling for fair access has been steadily growing. Earlier in April, Rep. Blumenauer and nearly three dozen of his colleagues sent a letter to House leadership urging them to make cannabis businesses eligible for SBA programs. Senators Jacky Rosen (D-NV) and Ron Wyden (D-OR) along with eight co-signers sent a similar letter to Senate leadership last week. They have been joined by cannabis industry advocates, the Marijuana Justice Coalition, the United Food and Commercial Workers International Union, state officials including Colorado Gov. Jared Polis, and others.

NCIA and our allies will continue to put pressure on Congress to treat cannabis businesses fairly during this crisis, but we need your help.

Please email and then call your congressional representatives today and ask them to support the legal (and essential) cannabis industry during this critical time. Talking points and instructions for calling your representatives are available on our website.

Email My Representative

Call My Representative

Here is a sample script you can use:

“Hi, I am calling/writing today to ask that you co-sponsor Congressmen Blumenauer and Perlmutter’s recently introduced Emergency Cannabis Small Business Health and Safety Act. This important piece of legislation would stop cannabis businesses and those that provide services to them from being excluded from further federal relief funding provided through the Small Business Administration. This current lack of access will undoubtedly lead to unnecessary layoffs, reduced hours, pay cuts, and furloughs for the workers of cannabis businesses who need support the most. As your constituent, I ask and urge that you sign on as a co-sponsor for this Act as soon as possible. Our industry, our businesses, and our employees cannot wait.”

The situation on Capitol Hill is extremely fluid as you might imagine. This bill could move forward as standalone legislation or could be incorporated into the next round of federal relief funds, which is being called CARES 2. Stay tuned for updates and be on the lookout for additional ways you can help us protect our essential industry.

 

Committee Blog: Facts About Current Good Manufacturing Practices (cGMPs) And Their Role In The Cannabis Industry

By Ellice Ogel, Tyler Williams, Peter Dougherty, David Vaillencourt, Trevor Morones
NCIA’s Cannabis Manufacturing Committee

A Primer on current Good Manufacturing Practices

What are GMPs?

Good Manufacturing Practices (GMP) are minimum requirements to ensure that products are created in a manner that ensures they are of consistent quality and safe for their intended use. If a product is found to be produced in a facility that does not meet GMPs, they can be considered adulterated and unsafe. In the U.S., the U.S. Food & Drug Administration (FDA) regulates the manufacture and sale of food and beverages, dietary supplements, pharmaceutical products, and cosmetics by requiring adherence to GMPs. The “c” in cGMP stands for current, meaning that how companies conform to GMPs must continually evolve with the development of new scientific research and industry best practices. Today, the two terms are used interchangeably. While cannabis is not recognized as a legal product at the federal level, federal legalization will inevitably result in the requirement for cannabis producers to conform to cGMPs. 

cGMPs can be broken into six major sections (1) Management Commitment, (2) Risk Management, (3) Quality Management Systems, (4) Site & Facility Management, (5) Product Controls, and (6) Staff Training (Figure 1).

Figure 1 Major elements of any system that follows Good Manufacturing Practices

Why are cGMPs important?

cGMPs are important for every industry to ensure manufacturers are producing safe products. A site that isn’t following the minimum requirements for cGMPs in their specific industry is putting the basic well-being of consumers around the world at risk, which the FDA terms adulterated. cGMPs provide assurance that steps within the manufacturing process result in passing final product testing. Final product testing alone is not enough to ensure the safety of consumers. In most cases, final product testing is completed on a small sample batch, so that manufacturers are not wasting the final product on sampling and testing. For example, if the manufacturer is producing 1 million dietary supplements, the manufacturer might only test 100 tablets from that batch. This means that if cGMPs are not being followed and there is no consistency in the safety of producing that product, then some of the products may be safe for consumption, while others may not. This results in product recalls or withdrawals, damage to brand reputation, and lawsuits. A recent study by the Denver Department of Health found that 80% of cannabis products on dispensary shelves failed testing despite passing final batch testing prior to sale.

What do cGMPs include?

Every industry regulated by the FDA has its own guidelines for cGMPs, which are found within Title 21 of the Code of Federal Regulations. Unique differences between cGMP requirements for each industry exist. If your company has multiple product lines that fall into any of these different industries, understanding how these differences will impact you are critical. Figure 2 provides a high-level overview of the major GMP topics that are required by industry.

Figure 2 Summary table of major FDA cGMP regulations by industry sector

 

 

Industry Type Location of primary GMPs within 21 CFR
Food & Edibles 21 CFR 117
Dietary Supplements 21 CFR 111
Pharmaceutical 21 CFR 211
Cosmetics See Draft Guidance for Cosmetic Good Manufacturing Practices

Figure 3 Table of the major industry types regulated by the FDA and where one can find the major cGMP requirements


Not all GMP topics are referenced in the primary section of the CFRs, which can make it difficult for people who are new to GMPs to ensure they are appropriately prepared. For example, the food and beverage cGMPs (21 CFR 117) does not include packaging and labeling controls, whereas the pharmaceutical cGMPs (21 CFR 211) does include packaging and labeling controls. 21 CFR 101 is home to packaging and labeling statues for the food and beverage industry. 

Each sector regulated by the FDA has overlap which contributes to talent acquisition/recruitment from other industries. 


THIRD-PARTY cGMP AUDITS

What are Third-Party cGMP Audits?

A third-party cGMP audit is a systematic independent and documented activity in which objective evidence is gathered and assessed to determine if the site’s cGMP system is appropriate and effective. In the 1990’s third-party GMP audits were like an inspection you would receive from the FDA or local health department. This means there was a heavy focus on the building itself and what was happening on the production line during the time of the audit. Nowadays, cGMP audits typically include much more than what is required from the Code of Federal Regulations (CFR). Examples of this include extra requirements for Hazard Analysis Critical Control Points (HACCP) and a much heavier review of documentation to ensure best practices are being followed all the time and not just on the audit day.

Benefits of Using an Experienced and Accredited Certification Body

One thing to keep in mind when considering a third-party cGMP audit is whether or not the audit is accredited. Certification Bodies are accredited (approved) by an Accreditation Body, to ensure their internal procedures and audit processes follow strict guidelines for different audit standards. If approved, the CB gets accredited to that specific audit standard. This along with direct oversight of the audit Scheme Owner and the Accreditation Body ensure that the Certification Body has qualified auditors and that the entire audit process goes through several quality checks before it becomes “final.” In the U.S., the three major accreditation bodies approved to do this are:

  1. American Association for Laboratory Accreditation  
  2. ANSI National Accreditation Board (ANAB) 
  3. International Accreditation Service (IAS)  

For more information on this process, one should refer to the International Accreditation Forum (www.iaf.nu).

WHY SHOULD MY COMPANY RECEIVE A 3rd PARTY cGMP AUDIT?

Unlike the food & beverage, dietary supplement, pharmaceutical, and cosmetics industries, cannabis is federally illegal in the United States. This means there are no federal regulations for cGMPs in the cannabis industry. However, some states, such as Florida, have taken the initiative and implemented requirements to have all cannabis facilities become audited to a cGMP standard before they can receive their license to begin manufacturing.

As the cannabis industry continues to evolve, retailers and others downstream in the supply chain will demand that cannabis manufacturers provide evidence of a certain level of quality and safety in their products. An attestation or certificate from a third-party demonstrating that your facility meets cGMP requirements is an internationally recognized way to provide that evidence and establish trust. Globally, third-party cGMP audits are crucial to maintaining product safety and quality by providing a third set of eyes to verify what is working and what is not. Besides regulatory requirements and customers requiring your facility to get a third-party cGMP audit, there are numerous other benefits to receiving a cGMP audit. Some of these benefits include the following:

  • Reduction in failed product testing
  • Improvement of product safety
  • Improvement of product quality and consistency
  • Eliminating potential risks and possible recalls
  • Marketing advantages over competitors who are not audited by a third-party
  • Improvement to consumer confidence and an increase in brand loyalty

ROADMAP TO cGMP CERTIFICATION

Management Commitment

It is essential to the entire cGMP system to have commitment from top-down. Without this, your site will not receive the resources (e.g. people, equipment, tools, budgets) it needs to implement an effective cGMP system. The culture of an organization requires everyone to practice what is lectured. Simply; Say what you do, do what you say. 

Start Preparing Early

Be realistically courteous to the timeline by generating an internal analysis. Using the scheme, the audit will be against, create a list of programs you currently have, and which are missing. Working towards a better score early will provide greater long-term value. 

The very first thing you need to do before you start making major changes to your facility or procedures is to identify which GMP standard or standards you intend to meet. With this established, you can select a Certification Body and obtain a copy of the audit form or checklist that they will use to assess you. 

Assess Your Current Level of Conformance

Establish an audit team and conduct a thorough assessment of your current organization. If this is new to your organization and staff, it is beneficial to work with a GMP expert that has experience in both cannabis and the cGMP program you are going to be audited against. Review your entire system against the audit checklist and highlight or markup items your site is already doing. This allows you to focus on the things you are missing and close any “gaps”.

Implementation and Teamwork

The preparation of an audit should never rest on the shoulders of one person. Your site should establish a multidisciplinary/interdepartmental team to implement the various tasks based on the findings from your initial assessment. Collaboration is key to successfully preparing for a cGMP audit, especially when timelines set by upper management are very stringent.

Training

Training is essential in preparing for your cGMP audit and business in general. This helps close the gaps between what your safety and quality department has developed and what your front-line employees are applying. All employees should understand what cGMPs are and how it applies to and benefits their daily activities.

Establish Your Internal Audit Program

Conducting internal audits is an effective way to not only prepare for your cGMP audit but to continually improve your organization. Breaking down your entire audit checklist into department or process-specific sections, you can establish the frequency of auditing these bite-sized sections. Should they be reviewed annually, semiannually, quarterly, monthly, or continuously throughout day-to-day operations? Some things, like reviewing your suppliers, may only need to be done annually, while things such as pre-operational inspections should be performed daily. Always use the actual audit checklist to observe your documents and facility to see if there are any gaps. Whenever possible, the person or team conducting the internal audit should never review their own work. Establishing any issues or non-conformances should be noted, evaluated, corrected, and closed out.

Schedule Your Third-Party Audit

A third-party mock audit is the closest thing you can get to an actual audit. This is where a third-party company would come in and evaluate your site to the specific cGMP standards and give a formal report over any deficiencies found during the assessment. This is a great way to test your preparedness before the actual audit.

Address Non-Conformances and Celebrate!

Your auditor will almost certainly identify areas where you are not fully compliant, known as non-conformances. Depending on your level of preparedness, you will hopefully have only a few Minors, but non-conformances can be classified as Major or Critical. You will work with your auditor to establish actions and a timeline to effectively resolve these non-conformances and provide follow up evidence of their closure. After successfully closing out your non-conformances, you will be rewarded with a certificate or attestation. Sit back, relax, celebrate! With a cGMP system in place, the established intervals to audit your system will ensure you have the tools and knowledge to maintain your cGMP status!

Member Blog: A COVID-19 Guide For Cannabis Entities

by Henry Wykowski, Wykowski Law

As the fallout from COVID-19 ripples through the economy, cannabis businesses are once again faced with a plethora of conflicting information and uncertainty. As counsel to the NCIA and in service to its membership, Wykowski Law has put together a guide to the most common issues facing cannabis businesses in the wake of COVID-19. The guide focuses on national issues and focuses in on some issues specific to California.

Please check out the guide for more details, but here is a quick rundown of what you need to know as a cannabis business in the age of COVID-19:

As we’ve unfortunately become accustomed to, cannabis has largely been left out of relief efforts, particularly where the federal government is concerned. Like with anything cannabis, this means that we have to dig deeper and be more creative to survive.

What sort of help can cannabis businesses get from SBA, PPP, and EIDL? Are there alternatives?

Generally, the Feds are not going to let MRBs touch these funds. But don’t despair. There are potential alternatives at the state level (in California at least) including CalCAP, IBank, and JSLP. Of course, these programs present their own challenges for MRBs, but they do not categorically rule out lending to the cannabis industry.

What about taxes and tax relief?

Unfortunately, when it comes to the Feds we continue to live under the spectre of 280E which makes so many of the tax credits and relief potentially unavailable. There may be some strategies to take advantage of some of these programs, but they are largely dependent on your individual situation. Check with your tax expert!

Some of these regulations just aren’t practical during a pandemic. Are we really expected to comply? 

There’s good news and bad news on that front. In California regulatory agencies are making some allowances including regulatory variances and allowing curbside pickups. But you have to get approval. Double (and triple) check what sort of regulatory relief your state is offering before deviating from any SOPs.

The bad news is that as an essential service in the age of COVID-19, many cannabis businesses are subject to additional health and safety requirements. California OSHA for instance has put out stricter standards for all businesses and we expect there might be more to come due to the nature of cannabis.

Times are tough, but not hopeless. And, all of the above is just the tip of the iceberg. The full guide goes into deeper detail. Of course, the information you obtain here and in the linked guide is meant to be informational only and is not, nor is it intended to be, advice legal or otherwise. For that you will need to talk to your lawyer and/or accountant.

Stay well. Stay safe. Stay sane.

DOWNLOAD THE GUIDE


Photo By CannabisCamera.com

Henry Wykowski is the founder of Wykowski Law a national cannabis law firm based in San Francisco that has represented the industry since its inception and successfully defended it in multiple landmark cases.

Member Blog: Harvesting Automation In The Time Of COVID-19

by Brett Layne, sales and manufacturing leader at Mobius Trimmer

Coronavirus is shining a light on the vulnerabilities (and inefficiencies) of manual processes in cannabis harvesting. 

Coronavirus is disrupting the cannabis industry in North America. And while COVID-19 restrictions vary in different markets, many cannabis cultivators have had to stop or drastically reduce operations to maintain compliance. 

Sadly, the long-term impact of coronavirus will force some cultivators to permanently close their doors.

Under the current social distancing mandates, the grow rooms themselves aren’t a problem. Staying 10 feet away from other staffers in a greenhouse is easy, there’s always plenty of space and the ability to rotate and spread out shifts. 

Harvesting is the culprit. 

Cramped and crowded trim rooms with at least a dozen employees (sometimes more) in close quarters isn’t acceptable or wise under today’s circumstances. Laws aside, many hourly employees are calling in sick or not showing up for work at all. Or even worse, they show up to work with an illness, COVID-19 or otherwise. Skilled workers aren’t easy to replace, but a sick employee introduces a new set of issues. 

We’re advocates for highly-automated cannabis harvesting and processing. Automation is perfect for roles that are dangerous or repetitious or can introduce inconsistencies and contaminate products. 

And because of coronavirus, the cannabis industry needs automation now more than ever. 

You’re ahead of the curve if you’ve automated aspects of your harvesting workflow. And you’re probably still operational. 

But it’s not too late for cultivators that are manually harvesting and trimming cannabis to re-think their processes, embrace automation, and adapt tools like automated trimming machines, buckers, conveyors, and mills to stay in business and keep their employees safe. 

There are many dated arguments that claim trimming machines take the soul out of cannabis. Hand-trimming is viewed by some as a more refined process that does less damage to the flower. And while most people will always be a fan of craft cannabis, the arguments against automation are, at this point, inaccurate. 

The trimming machine backlash was the result of legacy trimmers that weren’t able to match the quality of hand-trimmed cannabis. Today, this isn’t necessarily the case. Innovative machine trimmers can produce a trimmed flower that’s virtually indistinguishable from its hand-trimmed cousins. And the best machine trimmers can offer a level of consistency that hand-trimming can’t match. 

If you’re not yet convinced, here’s something to consider: the consumer opinion of hand-trimmed cannabis will change after COVID-19. Customers will feel better knowing that their cannabis has had minimal human intervention. 

The best of today’s machine trimmers produce an exceptional product, keep your employees safe, and help you stay in business. It’s a win-win for everyone. 

Now is the time to consider automation if you haven’t before in order to keep your operations, your employees, and your customers safe, and watch your business continue to grow. 


Brett Layne is a sales and manufacturing leader at Mobius Trimmer, his “forever home.” Prior to his career in the cannabis industry he’s been a brewer, winemaker, industrial rigger, carpenter, and mass-timber builder. He lives in beautiful British Columbia with his family. 

Mobius Trimmer takes the complexity out of harvesting by offering the world’s best cannabis and hemp processing equipment. Mobius equipment is engineered for ease of use, scalable output, employee safety, and GMP workflows. Plant material bucked, trimmed, and milled by Mobius equipment rivals product processed by hand.

Backed by harvest consulting experience earned in facilities around the world, top-tier customer service, and an immersive training academy to help you maximize your investment, Mobius is the unrivaled global standard for cannabis and hemp processing.

 

Best Practices for Cannabis Companies and Consumers During COVID-19

In this time of national crisis, the cannabis industry has come together in a continued commitment to ensuring the health and wellbeing of the public. Cannabis companies have donated personal protective equipment to first responders, hired workers laid off in other industries, and some businesses have even adapted some of their manufacturing capabilities to produce hand sanitizer. As this pandemic has affected every aspect of our lives, we must all do our part to flatten the curve. We are working with state health officials and medical and public health professionals to ensure continued safe access to cannabis medicines and products. To this end, we are providing information to help keep you healthy and ensure safe and responsible cannabis use.  

What can the industry do to keep our communities safe? 

Industry has been proactive in implementing social distancing measures in accordance with guidelines issued by the Centers for Disease Control (CDC) to ensure the health and safety of our communities, including those most vulnerable to COVID-19. 

Proactive measures include: 

  • Increased sanitation and safety measures pursuant to regulations set by the Occupational Health and Safety Administration and local health departments.
  • Screening employees for symptoms of illness.
  • Limiting customers and employees in stores, and to the extent allowed by local law conducting transactions through delivery and curbside pickup.
  • Provide additional or distinct store hours for high-risk groups, like customers over the age of 60.
  • Calling on cannabis authorities to reduce medical caregiver and patient application fees to limit travel by vulnerable members of our community. 

What can cannabis consumers do to stay safe? 

(1) Consult with a medical professional before consuming cannabis if you are experiencing one or more of the symptoms of COVID-19. 

(3) Do not share joints, pipes, vapes, or other products shared mouth-to-mouth. 

(4) Avoid group consumption and follow social distancing guidelines. 

(5) Get cannabis from licensed and regulated sources.

(6) Cannabis patients and consumers should consult with medical professionals and CDC guidance to identify the safest methods of use. 

(7) If possible, consider choosing non-pulmonary methods of cannabis for consumption

(8) Don’t spread false information about cannabis as a cure or treatment for COVID-19

Important Note from the International Association for Cannabinoid Medicines (IACM): 

“There is no scientific evidence that individual cannabinoids – such as CBD, CBG or THC – or cannabis preparations protect against infection with the SARS-CoV2 virus or could be used to treat COVID-19, the disease produced by this virus… Please do not pass on false information that is circulating on the Internet [about cannabis preparations and cannabinoids as a cure or treatment for the SARS-CoV2 virus/COVID-19 disease].”

Read the full IACM statement here 

 

Committee Blog: Working With Your Local Government as a Cannabis Processor

by NCIA’s State Regulations Committee

If you want to open and operate a regulated cannabis business, there’s no avoiding local government. Every state grants different amounts of power to towns and cities, with some allowing localities to ban cannabis businesses outright, and others simply giving them the same power over time, place, and manner of operations that they have for other businesses. But since cannabis can be a hot-button issue, a proposal to open a cannabis facility often attracts far more attention than opening any other type of business.

To help NCIA members and other cannabis entrepreneurs navigate local government, we at the State Regulations Committee have launched a series of blog posts, with each taking a close look at a different type of cannabis license. Last month, we published our first post, “Working With Your Local Government as a Cannabis Cultivator.” 

Today, we’re moving one step down the supply chain and talking about cannabis processors (sometimes also called manufacturers or infusers). Since state programs vary widely, with some licensing cannabis processors independently and others combining processing with cultivation (or even a single vertically integrated license), we will be focusing on the operations rather than the licenses themselves. If you’re seeking a combined license, be sure to read the blog for each activity your business will be allowed to engage in — while there is some overlap, there are also some major distinctions in how different operations can most effectively interact with municipal officials, and you will need to be well-versed in answering questions unique to each phase of your business.

ECONOMIC IMPACT

Like the three rules of real estate being “location, location, location,” the three rules of economic development are “jobs, jobs, jobs.” When proposing a new business in a town or city, local officials are going to want to know how many jobs it will bring, as employment can put money directly into the hands of their constituents and have ripple effects throughout the local economy. 

In addition to the raw number of jobs your business will create, it’s also important to highlight the qualifications for those positions. Processing facilities often need to have highly qualified individuals with PhDs or other certifications to manage production processes, and officials will be happy to see the salaries that come along with such positions. Entry-level jobs, such as working production lines, are also worth talking about — even though they have lower salaries than someone with a doctorate, it’s usually much easier to hire local talent for these positions. Any commitment to hiring locally as much as possible is usually a big plus to politicians. Additionally, be sure to mention how much these new employees will add to the local economy, through all the typical living spending they will do.

Setting up and maintaining your facility will also have a major economic impact, especially in smaller communities. If you’re constructing a building to suit, get estimates from your contractors about the jobs your project is supporting, and let officials know how much you’re investing in the build-out. If you’re moving into an existing space, you’ll almost certainly be doing significant renovations to meet the state’s strict safety standards, which is also worth talking about. Towns and cities that are struggling economically will often be very happy to see unused commercial space become occupied, especially if those properties are being improved. If possible, also identify local contractors (like electricians) or suppliers (like lumberyards) you will use for construction.

Finally, there are direct payments to the local government. While officials love to see any sort of economic development, they still have services to provide and a budget to balance, and will want to know what the municipality will be receiving directly. Calculate your building’s expected property taxes, both on an annual basis and 5-10 years out — since cannabis licenses are usually very difficult to re-locate, emphasize that you are in it for the long haul. Be sure to understand your states’ tax structure, and know whether there are any local taxes that the town will receive, or if towns that host cannabis licensees receive any portion of state tax revenue. 

PUBLIC SAFETY

The top public safety issue in local officials’ minds when it comes to cannabis processing is almost surely to be butane fires and explosions. This is for good reason — while hydrocarbon extractions can be very safe and effective when done properly, when done improperly they can be incredibly dangerous. City councilors or fire chiefs may have read some of the many headlines about butane-related accidents over the past few years, and it’s up to you to address these concerns directly and honestly. Of course, before diving into these conversations, check to see if the municipality or county has already banned such extraction methods, as some state laws allow local control in this area.

If you’re not planning to perform hydrocarbon extractions at your facility, be sure to tell that to your local officials. They may not realize that there are many other types of cannabis extracts that do not present such safety risks, such as CO2 extracts (carbon dioxide is not flammable, and similar processes are used for decaffeinating coffee) or bubble hash (which uses only cold water). If you have zero interest in ever using hydrocarbons in your facility, putting this agreement into writing may make local officials even more comfortable.

If you do plan to perform hydrocarbon extractions, educating officials on the risks and safety measures is paramount. Most states have extensive regulations on how extraction labs must be set up, which you can email or print out for meetings to demonstrate what you’ll need to comply with. Since the vast majority of butane-related accidents have come from illegal labs with makeshift equipment, show officials the equipment you’ll be using, emphasizing the price and professional quality. The manufacturers may even have fact sheets or other information you can share to demonstrate the safety of their equipment. As you educate officials on your methods and equipment, be sure to keep open lines of communication with the fire chief and building inspector, who will have the most expertise and authority on this aspect of public safety.

Beyond the processing-specific concerns about fires and explosions, all cannabis businesses will have to deal with officials’ concerns about theft. These may be particularly acute for processors since your end products have a much higher value-to-weight ratio than raw cannabis plants. To address these concerns, explain the security requirements in state laws and regulations, and any areas where you are going above and beyond what is mandated. Things like external security cameras and floodlights can both protect your own business and your neighboring community, making a cannabis business a net gain to public safety.

COMMUNITY IMPACT

Once economic development and public safety have been considered, local officials will wonder about the broader community impact of your cannabis business in areas like odor or traffic. This is an easy topic for processors, as they arguably have the smallest impact of any type of cannabis operation.

Processors are generally much smaller than cultivation facilities, and since they’re not full of growing cannabis plants, they also have much less odor to address. Unlike a dispensary or retailer, processors are not open to the public, so town planners won’t need to worry about an influx of traffic. Once you explain how you’ll be operating, local officials should be able to rest easy knowing that to an outside observer, your business will be virtually indistinguishable from a commercial kitchen or light manufacturing facility. If there are still concerns about odor, inform them that modern odor mitigation technology can completely eliminate any odor from leaving your facility.

GOING FURTHER

Once you’ve explained what you’d like to do and how you think your facility would fit into the local community, the conversation isn’t over — it’s just beginning! If the local government needs more time to consider your proposal, then it’s good to keep in close touch and address any additional concerns they have as they arise. If the local officials are already comfortable with your business and are welcoming it into their community (or if your state law doesn’t give local officials the power to stop you from opening up), it’s still great to build that relationship and keep an open dialogue.

Elected officials usually need to know a little bit about everything, but don’t have the bandwidth or in-house expertise to go very deep on most subjects. That’s where you, someone working full-time in the cannabis industry, come in — you almost certainly know more about state laws and regulations than they do, which is a great opportunity for you to serve as a resource. If you hear about changes in the law or proposed bills that could impact their town or city, send over news articles or bill text to help keep them informed.

Once you’re open, it’s always great to offer tours of your facility. This will help officials gain first-hand knowledge of what you actually do, and in municipalities where legal cannabis is new, it can help dispel negative stereotypes and demonstrate how professional you and the rest of the regulated cannabis industry are.

Be sure to stay tuned for future installments in this series, where we will be addressing other cannabis license types. Our next blog will focus on retail.

NCIA Today: Episode #3 – Caucuses Postponed, Illicit Market Summit Findings, Coronavirus Response, and more!

Welcome to NCIA Today – tune in for our latest episode!


Host Bethany Moore, NCIA’s Communications Manager and host of NCIA’s weekly Podcast ‘NCIA’s Cannabis Industry Voice‘ brings you an in-depth look at what is happening across the country in federal cannabis policy reform and with NCIA.

Off the top, Bethany discusses NCIA’s response to the COVID-19 pandemic, including postponing NCIA’s Cannabis Caucus event series originally scheduled throughout the month of March.

We also check in with NCIA’s Director of Media Relations, Morgan Fox, to hear some of the recent highlights in the news surrounding cannabis policy reform.

Bethany gives a summary of the key findings from the Illicit Market Summit held in Boston in late February. We also check in with NCIA’s Executive Director and Co-founder Aaron Smith to hear more about the industry and NCIA’s response to COVID-19.

Keep in touch, and follow NCIA on every social platform.
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Member Blog: How to Launch Online Ordering and Dispensary Procedures During COVID-19

by Faai Steuer, VP of marketing at Cova Software

The growing coronavirus outbreak in North America has affected businesses of all sizes and sectors, including cannabis dispensaries. Many states have categorized medical dispensaries and retail cannabis stores as essential businesses. But it’s extremely important that any cannabis retailer choosing to stay open during this time take extra precautions to keep their staff and customers safe while still staying compliant with local and emergency laws. 

COVID-19 Plan

5 Steps to Get Started With Online Ordering and Delivery Service

Review local laws and identify your strategy

It’s not easy to quickly change the way you operate your cannabis business, but it can be done. Look to see how other industry leaders across the country are handling this moment. Check if your state allows for online ordering and in-store express pick up, curbside pick-up, delivery, and drive-thrus here.

Use technology to stay compliant and make your vision come to life

You will have to rely more on retail technology while human interaction and in-person sales are not possible. Online ordering, delivery, line queuing, and no-touch ID verification policies will all require reliable tech. Check with your current POS if they have a workaround to facilitate the new process and integration with an online ordering platform. 

Re-design your store layout

Change your store layout to further limit exposure. Take all of the products out of display cases and instead use that space to store fulfilled online orders. Use ropes or another barricade to ensure a six-foot distance between customers and sales counters.  Install sneeze guards in front of checkout stations. Use tape or signage to mark where customers should be standing (six feet apart). 

Develop operating procedures

These changes will require an update to your operating procedures. You will need a few employees dedicated to packing online orders and another employee on the floor ensuring customers are far enough apart and surfaces are consistently sanitized. If employees are feeling sick, require them to stay home. Some dispensaries are even taking the temperature of employees before every shift. 

Train & protect your staff

Be sure to limit the number of customers in the store at a time, so there is ample distance (3-6 feet) between people. Protect your employees and customers with the following equipment:

  • Touchscreen-friendly gloves for employees
  • Alcohol swabs for any surface customers touch at the POS
  • Hand sanitizer
  • Masks
  • Lysol or other CDC-approved antibacterial cleaning spray

Sign up for a free webinar on March 31: How to launch an online ordering and delivery program during COVID-19.


Faai Steuer is VP of marketing at Cova Software, the fastest-growing cannabis retail POS in North America. An entrepreneur at heart, she has a passion for growing startups and building brands. With 20 years of marketing experience in CPG and retail tech, she lends her knowledge and best practices to help cannabis entrepreneurs in the U.S. and Canada open their first store and grow their business through vital thought leader content. 

Cova is an award-winning, seed-to-sale compliant POS with an intuitive design and robust tech platform, making it the most reliable cannabis POS system on the market. Cova helps dispensaries simplify compliance, raise the customer experience bar, and increase revenue through automated compliance capability, express check-out app, and integrated delivery solutions. Learn more at www.covasoftware.com.

Webinar Recording: A Spring Federal Policy and Government Relations Update

In this webinar from the morning of Friday, March 27 at 10:00 AM MT, NCIA’s Director of Public Policy, Andrew Kline, presents an update focused on federal cannabis policy issues taken up by NCIA’s Policy Council, including vaping illnesses, highlights of the findings from the Illicit Market Summit, and comments to be submitted to the DEA and NIDA. We also explore the COVID-19 responses across the United States.

Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations, shares information about how to stay politically active on behalf of cannabis policy reform while still practicing physical distancing during the COVID-19 pandemic. We explore the impact that COVID-19 is having on small cannabis businesses, plus an update on the action and movement we’ve seen in Congress, including a recent letter sent regarding Small Business Administration loans for cannabis businesses.

Speakers

Michelle Rutter Friberg
Deputy Director of Government Relations, National Cannabis Industry Association

Michelle Rutter Friberg is deputy director of government relations for the National Cannabis Industry Association. Prior to working for NCIA, Michelle was a research analyst at a government affairs firm in Washington, D.C., where she analyzed and tracked legislation on numerous issues. Michelle graduated from James Madison University in 2012, receiving her Bachelor of Arts degree in Political Science with a minor in History. During her studies, she held a year-long internship with Virginia House of Delegates member Tony Wilt (R). There, she communicated with constituents, businesses, and government officials alike, facilitating meaningful conversations. Michelle was also a member of a pre-law fraternity where she planned events and hosted social functions that sought to encourage long-lasting professional and personal relationships with members. A native Virginian, Michelle currently resides in the Washington, D.C. neighborhood of Capitol Hill.

Andrew Kline
Director of Public Policy, National Cannabis Industry Association

Andrew Kline is NCIA’s Director of Public Policy. In this new role established in early 2019 at NCIA, Andrew leads NCIA’s substantive public policy efforts, striving to prepare and protect the state-legal cannabis industry. He will also lead NCIA’s Policy Council, a group of NCIA members focused on influencing federal and state public policy. Kline most recently served as President of the National Association of Cannabis Businesses (NACB), the first self-regulatory organization for the high-growth cannabis industry. At the NACB, Andrew led the creation of national standards for the state-legal cannabis industry, oversaw its standards governance board, and led day to day operations and strategic planning. Kline has a deep and celebrated background in public policy, law enforcement, and coalition creation/management. He is renowned for his ability to create solutions to complex domestic and global public policy issues that appeal to both private and public constituencies.

Committee Blog: Clean Workplace Environments

By NCIA’s Human Resources Committee

NCIA’s Human Resources Committee hopes that you and all your employees are healthy during this outbreak. Many states continue considering cannabis-related business as ‘essential,’ so the HR Committee met to discuss ways NCIA member companies could navigate the impact of the COVID-19 outbreak on our cannabis businesses to help ensure you and employees minimize your risk of spreading and contracting the virus in the workplace. 

We are confident that our fellow member companies strive to create a safe and healthy work environment for their employees, but we have brainstormed a few extra precautions cannabis companies may want to consider during this outbreak.  

One of the best resources we have seen thus far are the WHO guidelines put in place for workforces.  

Some additional best practices we have seen from dispensaries, processing facilities, and cultivation sites are as follows:

Time Login/Logout

Consider using an app so employees can login/logout on their own phones versus signing in/out, using a time punch system, or everyone logging in/out on the same computer system.  

Cash Handling

We know that cash handling & computers being used by multiple people is a concern for many employees. Consider purchasing gloves for employees to use. If gloves aren’t available due to medical personnel needing these supplies at this time, offer additional breaks so employees can wash their hands between each transaction with a customer.  

Product Packaging Handling

If you’re in a state where customers are allowed to touch the product packaging or sample containers, consider also having gloves available for customers to use. You should also have some form of cleaning wipes available to wipe down packaging, sample containers, etc. after each customer has touched them, along with wiping down cabinet tops between each customer. Seeing as these supplies are sometimes not available at this time, consider putting up a notice stating that in order to keep customers safe during these times, only Store Employees will be handling product packaging.  

Safe Distancing

For retail stores, you may want to even consider installing plastic/glass barriers (think similar to what we had back in the medical days or you see at banks) in order to keep employees/customers safe. For Producer/Processer cannabis companies, you should try to keep employees at the 6-foot minimum distance. If you’re not already operating in multiple shifts, you may want to consider doing this as well so you can continue regular production but space out workers so they feel safer in this environment.  

Hand Washing

Add additional hand sanitizer stations and consider hiring additional staff and/or appointing one of your current staff members to wipe down all surfaces every 30 minutes. 

Thermometers

Consider purchasing thermometers for each employee so they can check their temperature multiple times/day.

Curbside Pickup or Appointment-Based Purchasing

Consider adding to your website a mechanism for customers to pre-order online with curbside pickup, or to schedule an appointment to visit your store. This can help to keep the number of customers in your store at any given time relatively low, while maintaining consistent business throughout the day. 

Encourage Delivery

While not all states have delivery available, those that do should try to encourage its use. This will help limit contact between your workers and customers. 

We are sure our fellow members will have plenty of other valuable suggestions, so we encourage you to share your best ideas in the comments section of this blog post, on NCIA’s Facebook page, so we can all work together to keep our cannabis community safe during these times. 

Member Blog: Protecting Your Cannabis Dispensary During The Coronavirus Outbreak

by Johnathan McFarlane, Director of Strategy at Hybrid Marketing Co

Amidst the coronavirus outbreak, cannabis dispensaries across the U.S. are posting record sales numbers. Many people are stocking up on what they consider to be the essentials. While we are always excited when our clients see increased sales, we need to emphasize the following:

Do not trade a short-term jump in revenue for the long-term damage you can do to your customers, employees, and community by continuing to operate your business as usual. It is NOT business as usual for most Americans right now, and precautions need to be taken by dispensaries that are continuing to operate. 

Be ahead of the curve. Be proactive with the measures we outline below rather than just responding to coronavirus restrictions when you are required to. It shows that you put your customers and staff’s health ahead of profit… Which you should be doing anyway. Being the first in your market to voluntarily adopt these precautions is newsworthy, and you may be rewarded with some media coverage if you spin it right. 

Cannabis is a medical necessity for many of your customers, whether they do their actual shopping on the rec or medical side. And your employees are depending on their jobs to continue to support their families during this very difficult time. That’s why we encourage dispensaries to continue to serve their customers and staff but to do everything in their power to reduce the risk of spreading COVID-19. And while there is no way to eliminate the risk entirely while continuing to operate, there are many things you can do to reduce the risk of spreading the virus amongst your staff and customers. 

Encourage online ordering

If your dispensary is in a market that offers online ordering, offer incentives to encourage customers to do this. Make sure you send e-blasts and text messages advertising the incentive, and include a pop up on your website promoting it. 

Offer curbside pickup or delivery

If you’re in a state that allows it, like Michigan, offer curbside pickup. Many places already offer delivery. Either of these are far better options than allowing people into your store, and should be encouraged with an incentive. If you need to beef up your delivery staff, remember that there are many, many folks in the service industry that are now desperately looking for work as restaurants and bars are closed down. If you’re in a market that allows curbside pickup, delivery, and/or order ahead, then considering shutting down in-store purchases completely. 

Limit the number of people in your waiting room and/or store

Social distancing is the mandate across the entire country, so reducing the number of people physically in your dispensary at any one time is critical. Consider a “call-back” service, similar to how many restaurants operate their seating. Customers give you their name and phone number and are added to a list. They can then go wait in their car until you call them to come into the store to make their purchase. It slows down the customer flow but will drastically reduce the number of people in close proximity. 

Require hand-sanitizing before entering the store

This one is simple! In most states, dispensaries have the right to refuse service to anyone for any reason. Have an employee stationed at the door and require customers to apply hand-sanitizer before entering the premises. Refuse service to anyone that won’t use the hand-sanitizer. 

Rotate staff on “round-the-clock” cleaning

Every business that remains open should be conducting a deep cleaning multiple times per day. Critical to that is sterilizing the “problem spots” that are most commonly touched by customers and staff inside your store. Light switches, door handles, credit card terminals, ATM buttons, and computer keyboards. If you have a location and staff large enough to support it, then consider round-the-clock cleaning of the interior. 

Shut down your store 

Drastic times call for drastic measures. Pro-actively closing down your cannabis dispensary even before it’s required by law may be the best option for some business owners. In certain markets, it may be the only responsible choice. Consider the fallout and permanent damage to your business if a customer or employee is infected, gets seriously ill, or dies because of an interaction they had in your store.

It’s important to keep in mind that this jump in sales and/or complete closure are only temporary. Regardless of what you do with your dispensary, consider the long-term implications of your business choices.

When things do return to normal, how will your stakeholders view your actions or inactions? 

If you must close your dispensary, keep your community close and engaged. Consider offering formal and informal virtual events, merch giveaways, contests, or educational webinars. There are lots of streaming and collaboration tools available, including many that are free or nearly free.


Johnathan McFarlane is the Director of Strategy at Hybrid Marketing Co. Hybrid Marketing Co is a Denver-based branding and marketing agency that specializes in building custom strategies that supercharge growth and drive revenue. Working with brands and businesses across the U.S. and Canada, Hybrid’s partners run the full-spectrum of the cannabis world including dispensaries, manufacturers, cultivators, and ancillary businesses. Visit hybridmarketingco.com to learn more about the Hybrid approach. 

We have plans in place with several of our clients to maintain their brand visibility if a total shutdown is necessary. We are offering completely free continuity-planning sessions for any cannabis business that is worried about their future. 

 

A Message For Our Members About COVID-19

As the coronavirus pandemic becomes more severe and containment measures increasingly disrupt our normal lives, I’m sure many of us share the same concerns. Will my loved ones and I be safe and healthy? What will happen to my job or business? What does the future look like?

In periods of such uncertainty, I always look to family. Not just my own, but my NCIA family – our staff and valued members who have stood with us through so many challenges. I know that together, we can all get through any struggle.

Perhaps just as importantly, I rely on NCIA’s core values to guide me in difficult times.

First and foremost, we have a responsibility to promote the health and safety of our communities by doing whatever is necessary to halt the spread of the virus.

For the past several days, NCIA’s staff has been working remotely in Washington, D.C., Denver, and California. And we are proudly advocating for federal relief for the industry, still pushing for Congressional reforms as much as possible under the current limitations, and continuing to build inclusive coalitions across the country.

And we are educating state policymakers on the need for consumers, especially patients, to obtain clean and tested cannabis from legitimate sources for the duration of the coronavirus response. NCIA and our allies are reaching out to state governments, urging them to declare cannabis businesses “essential” as early as possible and to take measures to facilitate safe access. You can help us by personalizing this template letter and sending it to your governor.

We understand the frustration and fear that many of our members may be feeling as we move forward into unknown territory. However, our industry is used to weathering the worst of storms and thriving in the harshest environments. The number one priority for everyone should be to minimize the duration and impact of this horrible situation that is costing lives.

As such, we are urging all our members to do the following, as applicable to you or your businesses:

  • Please strictly adhere to all federal, state, and local health guidance. This is essential for slowing the spread of the virus as soon as possible.
  • Prioritize patient access. At a time when the healthcare system is already overburdened, it is vital for our most vulnerable neighbors to be able to get the medicine that works best for them.
  • Limit in-person retail operations to maximize social distancing and utilize alternative service options. We should try to go above and beyond official guidance, as well as encourage things like delivery, online ordering, drive-thru, and curbside pickup where available.
  • Implement additional cleaning and sanitary practices at every level. This industry is already a great example of cleanliness, but we can always do better.
  • Encourage telework to the greatest extent possible. There are many ways to make this easier in the modern workplace, and it is quickly becoming the norm during the pandemic.
  • If you can, please consider contributing to local efforts to assist those most in need in your communities. Coronavirus is affecting everyone, but some are feeling the impact much more than others. Generosity and compassion will help us all get through this together and come out stronger.

In order to protect the safety of our staff, event partners, and members, we have postponed our 10th Annual Cannabis Industry Lobby Days — originally scheduled for May — to September 15-17. We are committed to providing the value embodied by the affected events to our members later this year, and in the meantime, we will be creating new digital opportunities to learn, network, advocate, and make your businesses stand out.

We continue to monitor all our other events including the Cannabis Business Summit in San Francisco, and will be in touch in the days ahead with any updates.

NCIA is confident that the industry will rise to this occasion and continue to grow and thrive. Because that is exactly what we do best! We persevere and overcome obstacles that seem insurmountable. And we assure you that NCIA will continue to represent the industry in our nation’s capital and offer support to help you get through the weeks and months ahead.

In health and unity,

Aaron Smith
Executive Director and Co-founder
National Cannabis Industry Association

How To Stay Politically Engaged in the Age of COVID-19

Photo By CannabisCamera.com

by Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations

Over the last few weeks, life in America has changed, and will remain so for the foreseeable future. However, even though most of us are practicing social distancing and working from home, there are still ways to remain politically engaged during this election year. Whether you use these tips to talk to members of Congress about COVID-19 or cannabis legislation, we encourage you to continue to communicate with your elected officials.

Here are a few ways you can do that from the comfort (and safety) of your own home:

Call your legislators

In the age of technology, we are lucky to have so many different ways to communicate with each other. Arguably, one of the most effective ways to contact your representatives and senators is by calling their offices. You can check out NCIA’s website for some do’s and don’t’s of calling, and if you need your elected officials’ contact information, you can find it here. Pro-tip: try calling your legislators’ district offices – they are usually less inundated with calls than their D.C. counterparts.

Go old school: write a letter (or an email)

Sometimes it’s nice to be able to sit with your thoughts and write them down – plus, it’s also a great way to pass some time while at home. Put those skills to work and consider writing your elected officials a letter or an email. Remember to always keep it professional, but also be sure to include your personal story.

Get more tips for writing letters and emails to elected officials.

Stay informed: read the news, a book, or listen to a podcast

As citizens, we all have a duty to stay informed, and this is a great time to delve into some new content! You can settle in with your favorite cannabis product and a good book (politics, history, or whatever you like!), or hop online to check out the news or go down a Wikipedia rabbit hole. If reading isn’t your thing, try searching for a new podcast – we recommend NCIA’s Cannabis Industry Voice. One rule, though – always make sure whatever you’re consuming is from a reliable source.

Check out Harvard’s tips for spotting fake news.

Join a campaign

While no campaigns are knocking on doors right now, there are still opportunities to get involved with one and help out from home. With 2020 being an election year, it’s important to remember that you don’t have to volunteer to help with the presidential race, either – you can help a local or state candidate, or a member of Congress. You can volunteer for the RNC, or if you’d prefer, help out the DCCC. Making phone calls for a candidate is also a great way to get some social interaction!

Follow your elected officials on social media

Once you’ve identified who your elected officials (or candidates) are, find them on Facebook, Twitter, and Instagram. Not only is this another great way to get in touch with them, it’s also a way to stay informed as many of them are holding virtual town halls and “live” sessions. When interacting with these accounts, always remember to remain respectful. 

Here at NCIA, we are all encouraged by our members and their dedication to patients, consumers, and overall public health, and we will continue to serve and advocate for you, even during these difficult times. COVID-19 will not last forever, and we will soon be back in the halls of Congress talking to members and their staff about the importance of reforming our outdated cannabis policies. Until then, stay home, stay safe, and stay healthy! 

 

Committee Blog: California Social Consumption Leads the Way

by Debby Goldsberry, Magnolia Wellness
NCIA State Regulations Committee – Social Consumption Subcommittee Co-chair

It was January 28, 2020: It’s a full house at the Berkeley City Council meeting, with comprehensive changes to the city’s marijuana regulations on tonight’s agenda. The biggest issue, with supporters of both sides attending, is the vote to consider legalizing cannabis consumption at specially designated licensed dispensaries. 

The proposal to allow smoking, vaporizing, and consumption of edible goods is supported on one side by a phalanx of marijuana advocates and dispensary operators, and on the other side, it’s the city Health Department and Berkeley’s famously NIMBY neighbors. This conflict runs deep; cannabis users want dignified, legal facilities where they can gather and use marijuana, and several dispensary neighbors and the health department want this idea squashed, full stop.

Fact is, people have long gathered together to share cannabis, as shown by an extensive recorded history of use. This spans from ancient Sumerians, who built huts and vaporized cannabis on burning coals inside, to underground marijuana smoke-ins in the 70s and 80s, to now, where cities are licensing legal cannabis consumption facilities for adults. 

California is helping lead the United States consumption lounge movement. For example, California’s Bureau of Cannabis Control (BCC) regulations (Section 5025) explicitly contemplate the possibility of consumption lounges, stating that “this section shall not be interpreted to prohibit cannabis consumption on the premises of a licensed retailer or licensed microbusiness authorized to engage in retail sales,” as long as they are locally licensed and approved.

Already, numerous California cities have created licenses for this, including Oakland, San Francisco, Emeryville, West Hollywood, Palm Springs, and Santa Rosa. 

The state law also created Temporary Cannabis Event Licenses, where onsite consumption is allowed at festivals like the High Times Cannabis Cup and the Emerald Cup. Yes, with city or county and state permission, it is possible to throw your cannabis dream event, but there are a limited number of locations in only a handful of places that allow these uses (including my hometown, Oakland). This makes it hard to get these licenses, and the costly and complicated regulations are hard to meet once you have one. Anyone hosting a Temporary Cannabis Event can expect to interact closely with the BCC regulators, who will surely attend to ensure compliance.

Cannabis consumption facilities are nothing new in California. They have long existed, ever since Dennis Peron opened his first dispensary in San Francisco in the early-1990s. His famous location on Market Street was five stories high, literally, as each floor contained tables, couches, and chairs where patrons could hang out and consume cannabis. When the Compassionate Use Act of 1996 passed, collective dispensaries started opening across the state, despite federal illegality and the occasional raid because of it (Dennis was raided by the feds and forced to close in 1998). 

I opened my first cannabis consumption lounge at Berkeley Patients Group in 1999, which was long before it was legal to do so. This was under the cover of tolerance provided by Proposition 215; after all, not even dispensaries were actually made legal by this groundbreaking initiative. That didn’t happen until the state legislature passed the aptly named SB 420 in [year], after which most cities grandfathered in their existing cannabis dispensaries. (Not all, though. Some municipalities used this transition as an excuse to ban dispensaries, or to close existing ones, during long periods of regulatory contemplation.) Berkeley allowed onsite consumption until the early 2010s, when the local regulatory processes changed. Hence, the City Council vote tonight to decide the fate of onsite consumption here once again. 

Now, I own Magnolia Wellness dispensary in Oakland, where local regulations have allowed cannabis consumption at specifically licensed dispensaries since 2017. Magnolia’s Dab Bar and Vapor Lounge was the first legal consumption lounge in the East Bay. We have café style tables, a gorgeous full, copper top bar, glass dab rigs with e-nails, Vapexhale and Volcano vaporizers, and a variety of tasting events where people can try samples. Unfortunately, Oakland’s dispensary law only allows vaping, edibles, and topicals, limiting smoking to additionally permitted outdoor patios, none of which currently exist. (Full disclosure: I also co-own Hi Fidelity dispensary in Berkeley, too.)

San Francisco, on the other hand, has more than a dozen shops where cannabis smoking, vaping, and edibles consumption are all allowed. SPARC, one of the first lounges in the city, has tasteful tables and chairs right in the main dispensary, where volcano vaporizers can be used onsite. Vapor Room, a few blocks away, is a smaller neighborhood joint, with a handful of seats for people to sit and enjoy smoking or vaping. According to owner Martin Olive, it was a costly HVAC system, at a near six-figure expense, that allowed his facility to host its cannabis smoking patrons. Moe Greens, the latest licensed lounge to open in the city, took four long years to get licensed, but is now a beautiful facility, with cushy booths for smoking and a counter service dab bar with top-of-the-line e-nails and dab rigs for patrons to use.

West Hollywood is the biggest news on the California consumption lounge scene, as the city recently licensed 16 facilities for on-site consumption. Half of these facilities will allow retail sales and consumption, while the others are allowed to sell only single-use items, designed to be consumed café style, while patrons are on-site. This plan has been controversial, though, because in issuing these licenses, the city took permits away from several of the long-existing dispensaries, re-issuing them to new operators. The ensuing lawsuits and legal battles will surely play out through 2020. 

There is another big problem in West Hollywood: the state law does not match up with their rather forward-looking ideas for cannabis cafes. For example, cannabis cannot be blended into café food and served on the spot, as the city imagined when creating this law; Cannabis can only be sold pre-packaged and tested, per BCC regulations. Furthermore, state-licensed cannabis businesses are not allowed to sell anything but cannabis products (and a shortlist of branded items like mugs, lighters, and pipes). In other words, they can’t sell non-infused foods or beverages like coffee, soda, or tea (or, since we are talking West Hollywood, kombucha and smoothies).

Until state law changes, the plan is stuck in limbo, with facilities looking for creative workarounds to allow food and beverage service. 

So, despite the West Hollywood ordinance passing in late 2018, only one facility has opened there, and even this has hit roadblocks. In fact, they recently re-branded after only a short time in business, from Lowell’s Café to the Cannabis Café, after a regulatory crackdown hit the Lowell’s brand hard. It remains to be seen when the other 15 cannabis lounges will open there. 

Back in Berkeley, staff from the Health, Planning, Police and Economic development offices joined forces with the Berkeley Cannabis Commission to present the City Council with a comprehensive plan to update the city’s cannabis ordinance. Diverging opinions meant that the agenda contained competing proposals on several of the ten proposed ordinance changes, with the Cannabis Commission leading efforts to create progressive changes, and the Health Commission stuck on the old trope, “we need more research.” 

Elizabeth Greene, City of Berkeley Senior Planner, explained to Council that these proposals have been in development since 2017, with the goal of expanding the rules to protect the entire cannabis supply chain, from seed to sale. This includes development of two new license types, cannabis consumption lounges and non-retail dispensary licenses. 

“State law allows for consumption lounges as part of a retail license, as these are the only facilities open to the public,” Greene says. “Currently, consumption lounges are not permitted in the City of Berkeley.” Her presentation made it clear that city staff recommended cannabis lounges be permitted, despite the worries of the Health Commission, whose representative commented that “legalization is new,” despite that cannabis sales have been regulated by the city for around 20 years. 

Long time senior advocate, and ICANN dispensary owner, Sue Taylor spoke eloquently in support of the proposal to allow lounges. “Seniors need a place to learn about cannabis, how to use it and dosing, and you could do that in a vape lounge. I can’t go into their homes, but I can provide this education at a lounge,” says Taylor. “It’s not like a bar; at a bar, you just get sicker. A vape lounge helps people.”

Ultimately, the City Council agreed. By 11:30 PM, Mayor Jesse Arreguín called the vote, with the Council unanimously approving the entire proposal. Supporters filled the room with cheers, and long-time advocates like myself reflected on the fact that, yes, hard work and determination do pay off. Together, we may just end prohibition, once and for all — and have some fun, too. 

 

The Illicit Cannabis Market Puts Consumers At-Risk and Is an Existential Threat to the State-Legal Cannabis Industry 

by Andrew Kline, NCIA Director of Public Policy

Photo By CannabisCamera.com

The illicit market is not working for anyone. The illicit market puts consumers at risk by offering untested, unregulated, and dangerous products, including “vape cartridges” filled with additives that are not intended for inhalation. These illicit vape products alone have caused 2,768 injuries and 64 deaths to date nationally. Pop-up dispensaries are selling illicit, unregulated, and untested products to unwitting consumers. Unscrupulous people are unlawfully selling cannabis products over the internet in violation of state and federal law, and online platforms are enabling the illicit market by advertising for illegal online and brick and mortar stores. Counterfeit and ready-to-fill packaging is being sold with fake lab results, batch numbers, and barcodes. Illegal growers are causing serious environmental harms. Even illicit market operators with the best intentions still put consumers at risk when they sell untested products produced in unregulated facilities.  

And these illicit operators pose an existential threat to the regulated markets that voters have demanded.  Operators are laying out significant funds for licenses and compliance to compete against an illegal, untested, unregulated, untaxed marketplace. Law enforcement is playing whack-a-mole. Consumers are often unaware of which operators are legal, particularly where illegal operators often have a veneer of legitimacy or have stolen the intellectual property of these regulated businesses to gain consumer trust. We need to make certain that reliable and safer products (tracked, tagged, and tested) are being sold in the regulated market. Trust in the safety of the supply chain is key here, with laboratory testing, traceability, and safeguards (eg: ability for recalls) as mandatory prerequisites. 

On February 19, 2020, NCIA, along with NCIA’s Policy Council, former Boston Police Commissioner Ed Davis, and Commissioner Britte McBride, public safety appointee on the Massachusetts Cannabis Control Commission, partnered to facilitate an important discussion with law enforcement, advocates, and industry stakeholders seeking solutions to the illicit cannabis market. The summit brought together federal, state and local law enforcement; state regulators, cannabis entrepreneurs and multi-state operators, ancillary technology companies, and social equity experts. The purpose of the summit was to dialogue about the illicit cannabis market with the goal of developing recommendations on resources, policies, best practices, and public-private partnerships to share information.

Here are some key takeaways:

First, the cannabis industry needs to help law enforcement find alternatives to arrest and incarceration. Some states have been creative in their approach to combating the illicit market, by locking doors and shutting off electricity and water, levying fines, and prosecuting tax evasion. It is essential that we rely most heavily on alternatives to arrest and prosecution so that we don’t perpetuate the myriad problems associated with the “war on drugs.” 

Second, the industry must better define the illicit market. The illicit market looks very different in Idaho than it does in Colorado. In Idaho, all sales are illegal and diversion from legal states into Idaho is a serious problem. In Colorado, state regulators are concerned about unsafe products being manufactured and sold outside of the state regulatory regime. So, we need to take a hard look at the products that are causing the most significant problems (injuries and deaths) and focus our attention on the most serious of those cases. Until we prioritize what we deem to be illicit market activity, it will be difficult to prioritize limited law enforcement resources. 

Third, the industry needs to definitively determine the root cause of the illicit market. We know that three probable causes of illicit market activity are: (1) lack of legal access to cannabis and cannabis products and (2) price disparity between legal and illicit markets, largely due to high taxes of legal products, and (3) a lack of economic opportunities in marginalized communities causing people to turn to illicit sales. But, what are other causes and effects? 

Fourth, the industry needs a forum for collaboration with law enforcement. The middle of a crisis is not the time to develop relationships. 

Fifth, the industry needs a pathway for illicit market operators to enter the legal market. We can’t displace the illicit market unless we create a pathway for previous illicit market entrepreneurs to enter the legal market. That means that states must create realistic pathways to enter the regulated market for legacy illicit market actors. There are an increasing number of potential models here, from the states such as Massachusetts (which has led on attempting to prioritize social equity during license application processes) and Illinois (which made such pathways a key point in the legislation to create a legal market) to industry groups such as the Minority Cannabis Business Association (which has published recommendations for state regulators intent on incorporating social equity requirements into their licensee applications). 

Sixth, law enforcement has competing demands and needs help prioritizing cases. What are the most egregious cases that warrant criminal arrest and prosecution? What are the cases that warrant automatic expungement? And what do we do with the cases that fall in between? 

Finally, the industry needs to speak with one voice and start rowing in the same direction. The industry needs national messaging from states that have a regulated market to help dispel myths and prepare warnings for responsible use. We need to share information on packaging and labeling, testing, universal symbols, etc., nationally. And most significantly, the industry needs to start speaking with one voice and work to bring legacy businesses into the regulated market. NCIA’s Policy Council is committed to continuing efforts to create a safe place for everyone in the industry to begin that dialogue. 

Andrew Kline is the Director of Public Policy for the National Cannabis Industry Association and leads NCIA’s Policy Council. He can be reached at Andrew@TheCannabisIndustry.org 

Video: Episode #2 of NCIA Today – #NECannaBizCon recap, Safe Vaping, Illicit Market Summit, and more!

Tune in to episode #2 of our new monthly video series: NCIA Today!


Off the top, Bethany looks back at #NECannaBizCon in Boston, MA this past month, our first trade show of 2020.

In our policy update, Bethany discusses “The Key to Consumer Safety: Displacing the Illicit Cannabis Market – Recommendations for Safe Vaping,” a recent report produced by our Policy Council and informed by a variety of subject experts, with NCIA Director of Public Policy Andrew Kline.

Oour annual in-person member policy and government relations update event series, the Cannabis Caucuses, are only days away in March. See where your caucus is happening!

We’ll see you next month for NCIA Today!

#IAmTheCannabisIndustry: Joseph Hopkins, The Greener Side

Joseph Hopkins, with his wife Chelsea, owns and operates The Greener Side, a dispensary in Eugene, OR. As some of the original entrepreneurs to open a dispensary in the state of Oregon, their story of being raided by federal authorities shows how resilient one needs to be in the cannabis industry. Hear their story in this video feature.

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