VIDEO: Palm Springs Regional Spotlight

NCIA visited the Palm Springs & Desert Hot Springs communities in September 2017 to meet and greet with current and future members. At this Member Drive networking event, cannabis industry professionals connect at the local level and reaffirm the importance of staying plugged in to a larger, national voice of thousands.

Video: Cannabis Amendments Blocked in Appropriations – now what?

In a late-night vote on Thursday September 6th, the House Rules Committee blocked a full house vote on all cannabis-related appropriations amendments. 

Fortunately, Congress passed a Continuing Budget Resolution which does keep the Rohrabacher medical marijuana protections in the budget until December 8th of this year, and more importantly for the long term, those protections currently included in the Senate’s Appropriations bill for the next fiscal year so Congress still has a chance to protect patients and state-legal cannabis businesses in conference committee.

What can you do? Watch the video to hear more from NCIA’s executive director Aaron Smith.
And log on to www.thecannabisindustry.org/SupportLeahy to contact your Senators!

 

Video: The Cannabis Industry Speaks Out in D.C.

Last month, more than 250 cannabis industry professionals came to D.C. for NCIA’s 7th Annual Cannabis Industry Lobby Days. In this month’s video newsletter, we capture highlights from this energizing two days of advocacy, education, and community. Watch the video to re-live the experience, or live vicariously through your fellow NCIA members. And plan to join us next year to add your voice!


Were you there? How did your meetings on Capitol Hill go? What was your favorite part of the experience? Please send a brief testimonial of your experiences to NCIA Communications Manager Bethany Moore by emailing bethany@thecannabisindustry.org.


Thank you to the co-chairs of NCIA’s Policy Council for their premier sponsorship of our 2017 Cannabis Industry Lobby Days:

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LivWell - LogoCanndescent_Logow_vapes_logo

VIDEO: Spotlight on California Cannabis Industry Association

In this month’s NCIA video newsletter, we headed to Sacramento to attend the California Cannabis Industry Association‘s 2nd Annual Policy Conference. CCIA is NCIA’s state affiliate in California. Hear from CCIA members and California state legislators about the critical work CCIA does to represent the state’s industry, and how the NCIA/CCIA affiliation means members have a comprehensive and powerful voice at the state and federal levels. If your California cannabis business isn’t yet a member of CCIA, join today!


NCIA Lobby Days 2017 email 600x200px

Member Spotlight: National Grow Technologies

In this month’s NCIA Member Spotlight, we speak with the team at National Grow Technologies, who offer a variety of services and products to support the cannabis industry. Recently, NGT sold a cannabis flower batching and sorting machine right on the expo floor of NCIA’s Seed To Sale Show to fellow NCIA member The Clinic. 

National Grow Technologies_v5-2National Grow Technologies

Cannabis Industry sector:
Equipment and Consulting

NCIA member since:
The NGT founders have been members of NCIA since 2010 through different endeavors. National Grow Technologies has been a member since its formation in 2015.

Tell us a bit about your background in cannabis and how the team at National Grow Technologies came to fruition?

National Grow Technologies‘ background stems out of the formation of the Colorado medical and adult-use cannabis markets. Our team brings 25 years of combined experience in the regulated cannabis industry as well as 50 years of combined horticulture experience. This includes build-out, ownership, and management of multiple dispensaries and full-scale cultivation operations, originating in 2009. We have since been involved in multiple projects, in numerous regulatory states, both nonprofit and for profit.

NGT team: Scott Field, Shandra Carlton, Bruce Granger, and Bill Campbell
NGT team: Scott Field, Chandra Carleton, Bruce Granger, and Bill Campbell

From the beginning, the need for regulation was obvious, prompting our involvement at a legislative level. This includes involvement in SB 10-109 and HB 10-1284 as well as the Rule-Making Workshop in 2010. What an exciting, educational experience, helping create the first regulated cannabis market. If we only knew then what we know now.  

As you can see, our passion for the cannabis industry runs deep. Through that passion, NGT developed organically, just as we developed our own dispensaries and cultivations. We immediately became involved in the national cannabis market, traveling to cannabis-related events, meeting many people in the industry and trading knowledge. We have always held the belief that “helping someone else learn strengthens our own education.” Through that enlightening experience, our processes to bring a quality commercial product to market were developed. Since that time National Grow Technologies and its partners have been working to help new and exciting businesses develop and refine the quality of their process.

What unique value does NGT offer to the cannabis industry?

National Grow Technologies does not just sell best-in-class equipment such as the GVS Precision Batcher or the GreenBroz trimmer; we also use our extensive experience to ensure that this equipment works for our clients. As the cannabis industry has evolved, many new products have been developed. Not all have effectively executed the operation for which they were designed, or are capable of integrating with commercial processes. Through extensive testing and use of various industry specific machinery, we are able to choose the highest performing equipment on the market. We take great pride in not just supplying this equipment, but also providing the training, services, and process development needed for repeatability of success.

Our training and support is what distinguishes our company. For every piece of equipment we sell, we strive to create an environment capable of its full potential. We realize even the best equipment can have its effectiveness diminished if used incorrectly. That is why NGT offers training programs with every piece of equipment we sell. Once you have successfully completed training and operations begin, the equipment must remain functioning optimally. NGT also has service programs for every piece equipment we sell. We recognize that our success is only possible with yours.

NGT_Green vault
The GVS Precision Batcher, sold to The Clinic on the expo floor at NCIA’s recent Seed To Sale Show

While supporting our clients through the integration and implementation of new equipment, we are aware that changes in process produce ripple effects through other processes or even the Standard Operating Procedures of a facility. Since our inception, we have been fueled by a desire to increase efficiency of cultivation operations, while recognizing the limitations of each facility. We have the skills necessary to refine your process, review plans to assess proposed process, or put processes into SOP documents. We are here to help.

By viewing a facility systemically through its entire manufacturing process and integration of new equipment, NGT assists our clients to optimize production. We do not run cultivations. We help clients run cultivations more efficiently, allowing them to fast-track business execution, while minimizing their financial exposure, creating a quicker ROI.

Cannabis companies have a unique responsibility to shape this growing industry to be socially responsible and advocate for it to be treated fairly. How does NGT help work toward that goal for the greater good of the cannabis industry?

We at National Grow Technologies look to use our experience from helping create a regulated market to educate emerging markets on techniques proven to provide the safe access of cannabis for adults. It is the responsibility of everyone in this industry to engage in business practices that ensure a proper and clean seed-to-sale process designed with the health and safety of consumers as a core principal. Cannabis needs to be handled and processed in a way that is safe for human consumption. This is a process that can be clearly defined, which will align procedures that navigate an increasingly complex set of ever-changing rules and regulations, while remaining true to the value of safe access. Each and every one of us has the responsibility to move this industry to a safe and sustainable position in manufacturing and distribution of cannabis.

Why did you join NCIA? What is the best part about being a member?

Bruce Granger and Shandra Carlton
Bruce Granger and Chandra Carleton

In 2010, one of the founding NGT members, Bruce Granger, was at the meeting with Aaron Smith when he said that he was going to build a National Cannabis Industry Association. Bruce has been a member ever since, through multiple business endeavors and now with NGT. We have stayed a member of NCIA due to the symmetry of our business models. We are both committed to the education, support, and unification of the industry.

NCIA has always been a resource of knowledge for ourselves and many in the industry, keeping us informed through their newsletters, Quarterly Cannabis Caucasus, and informative speakers at every conference. They have supported the cannabis industry by taking a message of positive reform to Washington, D.C. We will only be able to continue and expand our industry with the education and enlightenment of our political system.

Reconnecting with our friends or meeting new members, the business opportunities abound. In fact, thank you to NCIA for bringing NGT and The Clinic back together at the NCIA Seed to Sale Show this past January 31 – February 1. The Clinic is now the proud owner of the first GVS Precision Batcher in Colorado, a state-of-the-art piece of equipment capable of precise weighting and batching cannabis flower. It is all of these memories of where we came from, and all of the possibilities the future holds that keeps NGT coming back to NCIA.


Note: NCIA member profiles highlight members and stories within our cannabis industry community. They do not constitute an endorsement or recommendation of specific products or services by NCIA.

 

Video Newsletter: The Challenges Ahead

In our final video newsletter of 2016, NCIA’s Aaron Smith and Taylor West give an overview of our victories in eight states across the country, as well as the challenges ahead of us as we see a new administration come in to the White House. Hear more about the importance of NCIA’s work in the halls of Congress as we go forward into 2017 and beyond.

Cannabis Caucus Takes Action!

by Brooke Gilbert, Director of Events and Education

At the end of October we wrapped up the fourth and final 2016 installment of our Quarterly Cannabis Caucus series. Thank you to the more than 700 attendees who joined us in cities across the United States throughout the month of October to network and to effect change on the local and national level!

We have a lot to be thankful for with the recent wins for cannabis in California, Nevada, Maine, Massachusetts, Montana, Arkansas, North Dakota, and Florida. However, a lot of uncertainty still lies ahead with the new administration. One thing we do know for certain is the Rohrabacher-Farr amendment currently offers the medical cannabis industry some amount of protection. This amendment bans the Department of Justice from spending money to prevent the implementation of state-level medical marijuana programs, in addition to removing funding for federal medical cannabis raids, arrests, and prosecutions in states where these programs are legal.

This important amendment needs to be reauthorized each year to stay in effect. At the end of September, Congress passed a continuing resolution to fund the government through December 9th. This means that in December, Congress will have to return and pass a funding bill for future government spending.

Throughout the final installment of our quarterly cannabis caucuses we urged attendees to take action by contacting your elected officials and asking them to sign on to a letter supporting the re-authorization of the Rohrabacher-Farr amendment. If you didn’t take action on-site at the caucus, we encourage you to take action now and contact your representative here:

TheCannabisIndustry.org/CallCongress

Weren’t able to make it to one of our caucuses in October? Check out the photo highlights below, and download the resources provided at the event on our Cannabis Caucus Resources page.

Thank you to our sponsors for making the final installment of our 2016 Quarterly Cannabis Caucuses possible!

Premier Sponsors
Atman Market
Cannasure Insurance Services
Canna Advisors
Guardian Data Systems
LivWell Enlightened Health
MJ Freeway
THC Design
urban-gro

Supporting Sponsors
CannaRegs
CRichter ~ HR Consulting

Media Partners
DOPE Magazine
Sensi Media

Event Hosts
California Cannabis Industry Association
Illinois Cannabis Industry Association
Marijuana Industry Trade Association of Arizona
Meadow
Newman Ferrara LLP

Be on the lookout for 2017 Quarterly Cannabis Caucus dates in the coming weeks. See you at the next Caucus in 2017!

Video Newsletter: An Election Day Tipping Point?

In this month’s video newsletter, we look ahead to the possibilities for progress in nine states voting on pro-cannabis initiatives on election day. With Arizona, California, Maine, Massachusetts, and Nevada voting on adult-use, and Arkansas, Florida, Montana, and North Dakota voting to create or expand medical cannabis programs, our industry has incredible potential to grow. Hear more from NCIA’s Executive Director Aaron Smith about this exciting election season.

If you’re not yet a member of NCIA, join today!

Your 2016 Cannabis Ballot Initiative Rundown

Michelle Rutter, NCIA
Michelle Rutter, NCIA

by Michelle Rutter, NCIA’s Government Relations Coordinator

In November, five states will vote on legalizing adult-use cannabis for individuals over 21 – Arizona, California, Maine, Massachusetts, and Nevada – while an additional four states will vote on medicinal cannabis reform – Arkansas, Florida, Montana, and North Dakota. All nine initiatives differ slightly from one another and each has its own unique language.

Below are NCIA’s quick summaries of each of the initiatives. Read up, then visit the campaign sites for more information and how you can help make 2016 another success in the fight to end marijuana prohibition.

ADULT-USE

ARIZONA

The Campaign to Regulate Marijuana Like Alcohol (Proposition 205) legalizes the possession and consumption of marijuana by persons who are over 21 and levies a 15% tax on the sale of cannabis, which would then be allocated to education and healthcare in the state. This would create an estimated $113 million in new tax revenue.

– Allows local governments to regulate and limit cannabis businesses
– If passed, Arizona’s cannabis market is projected to surpass $1 billion within three years

Learn more and find out how you can help

CALIFORNIA

The Adult-Use of Marijuana Act (AUMA) (Proposition 64) legalizes the possession and consumption of marijuana by persons who are over 21 and enacts a 15% sales tax, as well as a cultivation tax of $9.25 per ounce of flowers and $2.75 per ounce for leaves.

– Estimated $1.4 billion in revenues within the first year of a fully operational market
– Written to prevent licenses for corporate or large-scale cannabis businesses for five years, which is in order to deter “unreasonable restraints on competition by creation or maintenance of unlawful monopoly power”

California has the largest state cannabis market (medical or adult-use) in the country, estimated at $2.7 billion in 2016.

Learn more and find out how you can help

MAINE

The Campaign to Regulate Marijuana Like Alcohol (Question 1) legalizes the possession and consumption of marijuana by persons who are over 21 and enacts a 10% sales tax in addition to the state’s 5.5% sales tax. The first $30 million in tax revenue from cannabis sales would be used for school construction, with any additional revenue allocated to the General Fund.

– Medical cannabis will not be subjected to the 10% sales tax
– Caps the number of cannabis stores and cultivators until 2019 and 2022, respectively

Learn more and find out how you can help

MASSACHUSETTS

The Campaign to Regulate Marijuana Like Alcohol (Question 4) legalizes the possession and consumption of marijuana by persons who are over 21 and creates a Cannabis Control Commission of three members appointed by the state Treasurer, which would generally administer the law governing cannabis use and distribution, promulgate regulations, and be responsible for the licensing of commercial cannabis establishments. It also creates a Cannabis Advisory Board of 15 members appointed by the Governor.

– Enacts an excise tax of 3.75%, in addition to the state sales tax
– A city or town could impose a separate tax of up to 2%

Learn more and find out how you can help

NEVADA

The Campaign to Regulate Marijuana Like Alcohol (Question 2) legalizes the possession and consumption of marijuana by persons who are over 21 and designates the Nevada Department of Taxation to issue licenses to cannabis retailers, suppliers, testing facilities, and distributors.

– Gives local governments control over cannabis business locations, and forbids businesses to operate near schools, childcare facilities, houses of worship, and certain community facilities.
– Enacts a 15% excise tax on wholesale sales of cannabis, in addition to the existing sales tax which would apply to the retail sale of cannabis
– Revenue generated from these taxes would be used to support K-12 education

Learn more and find out how you can help


MEDICAL

ARKANSAS

There are two competing initiatives on the 2016 ballot: the Arkansas Medical Cannabis Act (AMCA) and Arkansas Medical Marijuana Amendment of 2016 (AMMA), known as Issue 7 and Issue 6, respectively. The main differences lie in patient card fee limits, the organizations that would implement the program, the distribution of sales tax revenue, and whether certain patients could cultivate their own medicine.
As of October 2016, Issue 7, the Arkansas Medical Cannabis Act (AMCA) was struck from the ballot. The initiative will still appear on the ballot, but the results will not be counted.

 

Arkansas Medical Cannabis Act (AMCA):
– Sets a cap on the fees required to get dispensary and cultivation licenses and the fees required for patient cards
– Assigns the Arkansas Department of Health to set rules for patient cards, medical conditions that qualify a patient for medical marijuana use, and operating rules for dispensaries and cultivators
– Requires that all sales tax revenue goes back into the medical marijuana program
– Permits qualified cardholders to purchase medical cannabis from non-profit compassion centers
– Allows patients and their caregivers to cultivate up to 10 cannabis plants at home provided they take steps to ensure it is secure

Learn more and find out how you can help

Arkansas Medical Marijuana Amendment (AMMA):
– Sets a cap on the fee required to acquire a dispensary or cultivation license, but no limit on the cost for patient card fees;
– Assigns the Arkansas Department of Health to set rules for patient cards and medical conditions that qualify a patient for medical marijuana use, and the Arkansas Alcoholic Beverage Control to establish operating rules for dispensaries and cultivators;
– Divides sales tax revenue, assigning 10% to the medical marijuana program, 10% to the Skills Development Fund, 30% to the state’s General Fund, and 50% to the state’s Vocational and Technical Training Special Revenue Fund

Learn more and find out how you can help

FLORIDA

The Florida Right to Medical Marijuana Initiative (Amendment 2) allows medical use of cannabis for individuals with debilitating medical conditions as determined by a licensed Florida physician and allows caregivers to assist patients’ use of medical cannabis.

– Mandates that the Department of Health shall register and regulate centers that produce and distribute cannabis for medical purposes shall issue identification cards to patients and caregivers.
– Constitutional amendments on the ballot in Florida must garner at least 60% in order to pass. This is why the medical cannabis amendment on the ballot in 2014 failed, despite receiving 58% of the vote.

Learn more and find out how you can help

MONTANA

Montana is voting to amend their dysfunctional medical cannabis program that has basically been regulated out of existence. The initiative amends the Montana Marijuana Act of 2011 and renames it the “Montana Medical Marijuana Act” (I-182).

– Allows providers to hire employees to cultivate, dispense, and transport medical cannabis, and repeals the limit of three patients for each licensed provider.
– Repeals the requirement that physicians who provide certifications for 25 or more patients annually be referred to the Board of Medical Examiners.
– Removes the authority of law enforcement to conduct unannounced inspections of medical marijuana facilities and requires annual inspections by the State

Learn more and find out how you can help

NORTH DAKOTA

The North Dakota Medical Marijuana Initiative will be Initiated Statutory Measure 5 on the ballot and is also known as the North Dakota Compassionate Care Act, which creates a state-regulated medical marijuana program for patients with specified debilitating conditions and written certifications from their doctors. Registered patients could obtain medical cannabis from a licensed non-profit compassion center, and if the patient lives 40+ miles away, they are permitted to cultivate a limited amount of cannabis for their medical use.

Learn more and find out how you can help


This year it’s more important than ever to make sure you’re registered to vote and get to the ballot box on November 8th. If you live in one of the nine states with a ballot initiative, cast your vote for ending prohibition or allowing patients access to medicine. Otherwise, don’t forget to cast your ballot for candidates at the local, state, and federal level who support cannabis reform to ensure that 2017 is the industry’s biggest year yet!

State Campaigns: Proposition 64 (CA) – More Than Industry, Justice

*Editor’s Note: As we enter the homestretch of the critical 2016 campaign season, NCIA has invited the state campaigns on marijuana policy to submit blog posts about the important work they’re doing. These campaigns need the support of the industry and the movement as they approach the finish line. If you haven’t already, please consider making donations of money or time to one or more of the state campaigns that are working to end the failed policies of marijuana prohibition.**

by Amanda Reiman, Drug Policy Alliance

Amanda Reiman, Drug Policy Alliance
Amanda Reiman, Drug Policy Alliance

They say there are moments that define an industry. A point where the creators and innovators look around and realize that things will never be the same. For the cannabis industry, that moment is November 8, 2016. It is that moment when the industry stands poised to enter the sixth largest economy in the world, the state of California.

On November 8th, Californians will vote on Proposition 64. Like the states that have gone before it, this initiative would legalize the personal possession and cultivation of cannabis for adults 21 and over in California, and like other states, it establishes a regulatory system for the cultivation, manufacturing, testing and distribution of cannabis products throughout the state. But, aside from the basics, there are several aspects of Prop. 64 that the cannabis industry should be particularly aware of.

First, Prop. 64 allows for, but does not require vertical integration. This means that businesses have the opportunity to perform more than one cannabis-related function, but they are not required to. Limits on vertical integration increase as the size of the business increases. For example, the smallest cultivator under the microbusiness license (less than 10,000 square feet), can vertically integrate under one license, whereas the largest Tier V cultivator, which will not be licensed until 2023, cannot vertically integrate at all. There is a flexibility in California’s regulations designed to accommodate the large variety of business types already operating in the state.

Secondly, Prop. 64 does not deny a license to an individual simply due to a previous drug felony. The first state to put this in the initiative language, California has an industry that has, for the most part, been operating in a gray/illicit market for the past two decades, despite the fact that California has allowed medical cannabis since 1996. For many of these folks, an arrest is par for the course, and these experiences should not exclude a person from participating in the legal market. This is especially true for people of color, who run a greater risk of arrest and felony charges for marijuana than white people.

Additionally, it’s not all about the plant. Although a lot of attention is paid to the growing of marijuana, creation of marijuana edibles, and the sales of marijuana, most of the new industry will revolve around ancillary products and services that do not touch the plant. This is especially relevant in California, which has a legacy of innovation, not just in tech, but also in agriculture and tourism. The infrastructure needed to support the legal market, especially given the high levels of regulation, still needs to be constructed in California, and should Prop. 64 pass, there will be an additional 39 million people living under these new rules.

Finally, and perhaps most importantly, passing Prop. 64 will create opportunities for partnerships between the cannabis industry and the communities who have been most impacted by the war on drugs. Marijuana prohibition has caused immeasurable harm to vulnerable communities in California. And, while these communities exist in the current legal states as well, none of the legal states are as heterogeneous and have as much income and quality-of-life disparity as California. With a billion dollars a year of potential tax revenue on the table, and with 50 million dollars of that revenue promised to communities most impacted by the drug war, passing Prop. 64 is more a social justice issue than a regulatory one.

The cannabis industry has a lot to be excited about concerning legalization in California – the jobs and opportunities created and the innovation that can finally come out of the shadows. But it’s so much more than that. Legalization is about more than creating an industry; it is about civil rights, reducing mass incarceration, and advancing restorative justice. Passing Proposition 64 in California will be a powerful blow to the war on drugs, but we must know we must stay vigilant to the over-criminalization of people of color that will continue in America.


Amanda Reiman is Manager of Marijuana Law and Policy at the Drug Policy Alliance, where she works to develop DPA’s marijuana reform work as it relates to litigation, legislative and initiative drafting, campaign strategy, policy advocacy, media relations, fundraising, and public education in the local, state, federal, and international jurisdictions in which DPA is active. Reiman joined DPA in 2012 after working with Berkeley Patients Group, a renowned medical marijuana dispensary, as director of research and patient services. Reiman is currently a lecturer in the School of Social Welfare at the University of California, Berkeley, where she teaches Drug and Alcohol Policy, Substance Abuse Treatment, and Sexuality and Social Work.

State Campaigns: Yes on 1 to Regulate Maine

**Editor’s Note: As we enter the homestretch of the critical 2016 campaign season, NCIA has invited the state campaigns on marijuana policy to submit blog posts about the important work they’re doing. These campaigns need the support of the industry and the movement as they approach the finish line. If you haven’t already, please consider making donations of money or time to one or more of the state campaigns that are working to end the failed policies of marijuana prohibition.**

by Dave Boyer, campaign director for Yes on 1 to Regulate and Tax Marijuana in Maine

yeson1maineThe Maine campaign to make marijuana legal is on track for victory on November 8! Yes on 1: Regulate and Tax Marijuana has held a double-digit lead in the polls since the beginning of this year. Mainers have a long history of cannabis reform, starting back in 1976 with the decriminalization of marijuana. Maine’s largest city, Portland, passed a local ordinance legalizing marijuana in 2013, and South Portland did the same in 2015. Over 100,000 Mainers signed our petition, and we are optimistic that the majority of Mainers agree.

Our messages are simple: regulating marijuana will generate tax revenue for our state, free up law enforcement’s precious resources, and give access to patients who don’t qualify for medical marijuana currently.

We are grateful to our supporters who stepped up to speak out in favor of Yes on 1 — supporters like Mark Dion, the former sheriff of Maine’s largest county, and Carey Clark, a registered nurse and university professor.

Soon, our advertisements, featuring these supporters, will be on TV and online. In the meantime, please take a moment to watch our latest campaign video:

To support the campaign financially or to get involved on the ground, please visit: www.RegulateMaine.org

Top 3 Ways to Get Involved with Congress at Home During August Recess

by Michelle Rutter, Government Relations Coordinator

US_Senate_Chamber_c1873Each year, Congress recesses for the month of August. Traditionally, this time has been used for Members to return home to their districts and meet with constituents and, of course, campaign for re-election. Though this makes August a quiet month in D.C., it’s a great time for you and your colleagues to get involved with the political process, engage with Members of Congress, and educate them on cannabis policy.

Here are the top 3 ways you can get involved at home during August recess:

Attend (or plan) a town hall

Town hall meetings are an excellent way for businesses, local leaders, and representatives of the cannabis movement to communicate with elected officials about issues affecting your community. Make sure you call or check your Representative and Senators’ websites to see if any town halls have been scheduled during August recess. If they aren’t planning on holding one, consider planning a town hall yourself and inviting various elected officials to talk about cannabis policy in your community and on the federal level.

Invite Members of Congress or their office staff on a tour of your business

Even though cannabis is arguably more mainstream than it’s ever been, many elected officials still have not had the chance to experience what the responsible and legal cannabis industry looks like firsthand. Whether you’re involved with growing, processing, or dispensing cannabis, or operate an ancillary business, a tour with a Member of Congress and/or their staff can be invaluable to them. Reach out to your elected officials’ district office and ask if they would be interested in a tour- their answer may surprise you!

Schedule a meeting with your Member’s district office

August recess means Members of Congress are home for an entire month and is a great opportunity to meet with them and their staff! There are very few things more compelling than a personal story when talking to elected officials, so whether your experience has been with the benefits of medical cannabis, the unfair tax burden of 280E, or the struggle for traditional banking, be sure to schedule an appointment with your district office to tell that story. Click here to find out who your Representative is and visit their website to see where their district office is located.

We all have a responsibility to educate and engage with elected officials in order to change the perception surrounding cannabis. August recess is the perfect opportunity to get involved with federally elected officials without having to leave home! If you need advice, help, or materials to assist you, remember to contact NCIA’s Washington, D.C. office by emailing michelle@thecannabisindustry.org.

Member Spotlight: Cannabis Consumers Coalition

In the cannabis industry, the life cycle of growers, retailers, extractors, and infused product manufacturers would not exist were it not for the consumers. As we move toward self-regulating our industry from the inside out, it’s important to consider all views and perspectives in those decision-making processes. This month, we check in with Larisa Bolivar of Cannabis Consumers Coalition to talk about the work she’s doing to protect the interests and concerns of cannabis consumers. cannabisconsumerscoalition

Cannabis Industry Sector:
Advocacy

NCIA Member Since:
April 2016

Tell me a bit about you and why you founded Cannabis Consumers Coalition?

I have been in the cannabis industry/movement since 2001 when I moved to Colorado as a medical cannabis refugee, and I have been a cannabis consumer for 25 years. I helped to establish safe access for Colorado patients through my organization called Caregivers for Safe Access, which became the Colorado Compassion Club and the first dispensary in Colorado prior to 2009. After several years on hiatus from the front lines of the movement, and spending time consulting on policy, business and communications in the emerging industry, I saw a need for more consumer-focused advocacy and that what was missing was a consumer protection agency. Much of the conversation had been focused on the needs of the industry, and that continues to play out today. It is my mission to change that. I believe that consumers are who drive the economy.

I believe my background is perfect for the task of playing watchdog for the industry. I have worked in startup and corporate environments in multiple emerging markets, including software, dot-coms, clean tech, and cannabis. My work in clean tech and software really prepared me for working in a tightly regulated environment. The clean tech company that I worked at, GridPoint, a billion-dollar-valuated startup with successful launch and exit is a smart grid company focused on energy management in the utility space, one of the most regulated industries in our country. When working in software, I worked as a technical recruiter staffing sensitive, high-level technical contracts mostly in defense, which is also highly regulated. I understand highly regulated environments really well, and it is easy to forget the consumer when trying to jump through so many regulatory hoops. I believe that with a strong consumer voice, we will eventually have fewer regulations.   

Larisa Bolivar, Executive Director of Cannabis Consumers Coalition.
Larisa Bolivar, Executive Director of Cannabis Consumers Coalition.

How does CCC provide unique value to the cannabis industry and movement?

The mission of the Cannabis Consumers Coalition is to provide cannabis consumers with a voice in the growing cannabis industry, and to ensure consumer rights and ethical behavior on behalf of cannabis-related businesses. The biggest value we provide is giving consumers a powerful voice and helping them to realize the purchasing power they have with their dollar in helping to hold the industry accountable to operating in an ethical, consumer-centric model. We provide consumers with a powerful voice, and have been very effective in changing laws to protect consumers. This occurred recently when we obtained and released the names of pesticide violators in Colorado. We quickly made a lot of enemies, and good friends, in the industry. Some business owners have called us anti-industry, which is quite the contrary. I risked my life trailblazing medical marijuana and laying the foundation for the launch of a billion-dollar industry in Colorado. This was pre-regulation, prior to when moneyed interests got into the game and created the framework for regulations. The industry began with blazing the path to create that possibility, breaking ground for the foundation to be laid. As such, I feel personally accountable for it, along with many of my peers and supporters who were also trailblazers and pioneers.

Consumers deserve the right to know that the cannabis they are purchasing is indeed the quality that is being marketed. They also need a strong voice to fight for their rights, and that is what I myself provide, especially with my history of activism, along with the support of our legal team at Fox Rothschild LLP. An Am Law 100 law firm, they have nearly 750 attorneys spanning multiple practice areas and across multiple industries, and have a reputation for working with nonprofit organizations and community groups.

Another value we provide is in helping businesses strive to provide the best consumer experience and high quality products. Quality end products in the cannabis industry are multi-faceted, starting with how a plant is grown, how it’s positioned in the market, to the consumer experience at retail outlets. All of it is so interrelated.

Here in Colorado, the issue of public consumption is hot and there are a couple of initiatives in the works this year to address that need. Can you tell me more about that and how you’re involved in this effort?

Indeed this is probably the hottest issue Colorado. Voters voted for the right to use cannabis legally, yet there are no places to consume. This also poses issues for cannabis consumers visiting the state. There are bed and breakfasts and some hotels that allow for consumption, but there are no places to consume and socialize. There are two initiatives in consideration.

There is the Responsible Use initiative put forth by Denver NORML, which is a private club designated license that requires people to become members, bring their own cannabis and allows for permitted events. The other initiative, The Neighborhood Approved Cannabis Consumption Pilot Program Initiative, will give permission to businesses, including bars, to allow cannabis consumption. Either one will be good for consumers. One is more exclusive, and by requiring membership it keeps things manageable and accountable by limiting the amount of people who can join, it does alienate neighborhood groups and businesses. My concern with the initiative permitting businesses to allow consumption, including bars, is that tourists new to cannabis consumption and consuming alcohol, can easily over-consume the two if they are not “seasoned” cannabis consumers.

Why did you join NCIA?

We joined NCIA after careful research into industry trade groups and selected the one that was the most diverse, influential, and had an ethical and inclusive industry. It is our desire to see a successful multi-billion dollar industry built on a foundation of integrity and inclusiveness, and NCIA offers that. While we may not align with the philosophies of all members, the organization pushes integrity in all that is does, and what I like the most is that it has organized councils that are really committed to creating an exemplary foundation for the entire industry, not just its members. You can see this in their Minority Business Council, where the discussions are always industry and community focused. I also like the networking available, especially meeting other passionate cannabis business owners across the country and having dynamic and energizing conversations.  

NEW: NCIA Launches Interactive Map For State Cannabis Policies

Thanks to a collaboration with NCIA members CannaRegs and New Frontier, we are pleased to announce a new resource now available on NCIA’s website to help you stay up-to-date with each state’s cannabis regulations and market size estimates. NCIA’s new State-by-State Marijuana Policies Map provides a valuable overview of every state’s approach to cannabis and cannabis markets.

Users can explore valuable information in this new interactive map by simply clicking on each state to see detailed summaries of the state’s cannabis market and regulations. This information is compiled and updated regularly by CannaRegs and New Frontier as changes are made to regulations and more data becomes available.

Screen Shot 2016-06-02 at 10.18.09 AMThe map provides information including medical and adult-use laws, as well as the number of cannabis cultivations, dispensaries, manufacturers, and testing labs allowed and issued in the state, fee structures for applications and licenses, residency requirements, and qualifying medical conditions for patients. The map also includes current medical and adult-use sales estimates, as well as projected sales for the year 2020. This information is provided for educational purposes only and is not legal advice or substitute for legal counsel.

CannaRegs is a web-based subscription service for cannabis professionals that provides enhanced access to all cannabis-related rules and regulations from state, county, municipal, and federal sources, and aggregates these rules and regulations in an intuitive, easy-to-use database. Click here to request a demo of CannaRegs’ services and save 15% if you’re an NCIA member.

New Frontier is a data collection and industry-reporting firm in the cannabis industry, providing data, analytics, and customized actionable intelligence to investors, operators, and legislators in this new blooming sector.

Click here to explore the State Marijuana Policies Map.

 

NCIA Members Get Results!

Following up with Ean Seeb three months after his visit to D.C. to meet with Hawaii’s congressional delegation on cannabis industry issues, we checked in to hear about some of the progress made on his efforts. We also spoke with fellow NCIA Member Tae Darnell, who accompanied Ean on several of his congressional office visits.

On April 4th, Senator Schatz of Hawaii became the 12th Senate co-sponsor of the Marijuana Business Access to Banking Act (S 1726).

Ean’s overall sentiment about the experience? Hard work pays off.

Ean Seeb, Denver Relief Consulting:
It was a sense of accomplishment in that when you’re working with Congress, things are very slow-moving and we have been dealing with the banking and tax issues repeatedly since my first NCIA Lobby Days in 2013.

As far as the experience of going into a congressional office and telling them you’re working with cannabis and asking them to back or co-sponsor some legislation, back then, it was a foreign thought. Contrast that with now – to walk in and have the recognition, know what we’re doing, and three months later to see a Senator actually fulfilling the only request that we made to him, specifically, to co-sponsor this bill.

All of our efforts are not for naught. If you put your mind to it, you go to work, and you extend some effort on behalf of the industry, you can make powerful, meaningful change here. Having another Senate supporter, even harder to come by than on the House side – it’s an incredible accomplishment.

I was delighted. It’s not due to any one person individually. NCIA’s Michael Correia, Director of Government Relations, set up the meeting and put it all together. It made me feel better about working hard and diligently with a team and getting to the solution to the challenge we’re facing. Sen. Schatz can’t himself enact the banking bill, but this is one more step toward chipping away at cannabis prohibition as we know it.

Tae Darnell and Ean Seeb stand outside of Senator Schatz's congressional office in D.C.
Tae Darnell and Ean Seeb stand outside of Senator Schatz’s congressional office in D.C.

It was really helpful to have my fellow NCIA member Tae Darnell there. I didn’t know it at the time, but Tae wrote the draft legislation for Hawaii, so he was really well-informed on the issues we were discussing and was able to provide some good examples as to why it was important to get behind the bill.

Tae Darnell, Sensi Media:
I’ve been deeply involved with Hawaii since 2010, when I drafted the first version of the medical marijuana bill that just passed. Although much has shifted since the original version, I’ve developed close connections at the state level and have a particular affinity for Hawaii’s role in the advancement of cannabis regulation because of those relationships.

When Ean approached me about lobbying with Michael and speaking with the federal arm of Hawaii (one of those being Senator Schatz’s office), I jumped at the opportunity. I think it’s incredibly helpful to be able to share direct experience and engage conversation that personalizes the story at a federal level. I also think it helps to be able to diversify perspective. In that regard, Ean was able to share his NCIA experience as well as Denver Relief’s experience both as a dispensary and consultant. I was able to share my experience as an (almost) 10-year cannabis lawyer who assisted Colorado with HB 1284, SB 109, and A64, and also as a drafter of Hawaii’s legislation. As a co-founder of Surna and Sensi Media, I was also able to share my experience as an entrepreneur on the ancillary side.

In the end, and based on my experience as a cannabis lawyer and entrepreneur, I’m incredibly excited that the work of NCIA is able to facilitate such incredible accomplishments. The countless hours of effort, put in by so many, are rewarded when we, as an industry, are able to accomplish goals like gaining sponsorship for critical banking legislation. I think successes like these are further validation of how critical it is that we continue to aggressively support the work of NCIA. The time is now to effect change, and the nearly 1,000 member businesses of NCIA are a major catalyst for why it’s happening.


NCIA_lobbydays_emaildivider v4

Want your voice heard in our nation’s capitol on issues affecting the cannabis industry? Join us for our 6th Annual NCIA Member Lobby Days in Washington, D.C., on May 12 & 13, 2016.

To make the most out of the Lobby Days experience, register early so that we can begin the process of setting up meetings for you on the Hill. Members who register before April 30th will be entered to win admission and travel expenses for two at NCIA’s Cannabis Business Summit & Expo, including airfare and lodging.

Video Newsletter: We’re going to D.C. in May, and so should you…

One of our most impactful events of the year is just two months away, and NCIA wants you to be there with us in Washington, D.C.

In this month’s video newsletter, hear from NCIA executive director Aaron Smith, as well as NCIA members Steve DeAngelo of Harborside Health Center, Jaime Lewis of Mountain Medicine, Brian Caldwell of Triple C Collective, and Ean Seeb of Denver Relief, as they share their stories about joining NCIA on Capitol Hill for our annual Cannabis Industry Lobby Days.

Register today for NCIA’s 6th Annual Cannabis Industry Lobby Days, May 12-13.



To make the most out of the Lobby Days experience, register early so that we can begin the process of setting up meetings for you on the Hill. Members who register before April 30th will be entered to win admission and travel expenses for two at NCIA’s Cannabis Business Summit & Expo, including airfare and lodging.

Guest Post: 2015 Cannabis Industry Market Analysis

by Jimmy Makoso, Vice President of Lucid Oils

2015 was a very exciting time in the cannabis industry. According to public opinion polls conducted in the U.S., between 51% and 58% of respondents were in support of legalization. The highest level of support comes from the age range of 18-34, showing a staggering 71% supporting full legalization. 

In 2015, several states voted for some form of cannabis proliferation, and many more have taken decriminalization measures. With a year of adult-use retail cannabis now completed in Colorado and Washington, and the start of full legalization in Oregon, the tide seems to be slowly but steadily shifting.

Reflecting back on 2015, here were a few of the notable developments that resonated throughout the cannabis industry.

MPP_JimmyMakoso

Emerging Markets

Currently there are twenty-three states and the District of Columbia that have laws legalizing cannabis usage in some form. Four states have completely legalized cannabis use for adults 21 and older.

On the medical side, several states opened their first cannabis dispensaries to the public in 2015. Nevada, Massachusetts, Minnesota, Delaware, and Illinois were among these states. Though sales have been slow going for various reasons, 2016 should be a landmark year for legalization in many of these newly developing cannabis markets.

Adult-Use Cannabis Boom

Colorado, Washington, Oregon, and Alaska have all completely legalized the possession of cannabis. On January 1, 2014, Colorado opened its first adult-use cannabis stores, which effectively combined their medical and retail markets. Their combined medical and adult-use system generated more than $699 million in gross revenue in 2014, with approximately $76 million in tax revenue collected. Washington, by comparison, opened its adult-use market in July of 2014 and finished the year with $64 million in total sales and $16 million in tax revenue collected. 

The revenue figures for 2015 have eclipsed the previous year’s marks substantially. Colorado gross sales came in just over $996 million for 2015, with $135 million in tax revenue collected from close to 800 stores, servicing about 5.5 million residents. 

Washington, by comparison, generated more than $357 million in retail sales, with more than $115 million going to the state as an excise tax. This revenue was generated at approximately 205 licensed stores, servicing 7 million residents.

Meanwhile, Oregon started a partial foray into adult-use cannabis sales by utilizing the existing network of medical dispensaries selectively approved for retail sales of cannabis flowers to anyone 21 and older. In July of 2016, Oregon will completely open its adult-use market. Alaska, with no medical dispensaries or infrastructure, will likely take much longer to develop as a viable market.  

This chart references data from the Washington Liquor Control Board as The Cannabist website.
This chart references data from the Washington Liquor Control Board as well as The Cannabist website.

 

2016: Legalization Abounds

With the level of success, both fiscally and socially, that was achieved in relatively small states, it should be expected that 2016 will be a big year for ballot measures legalizing cannabis. There are several states that are gearing up for potential 2016 ballot initiatives. Massachusetts, Maine, Missouri, Ohio, Nevada, California, and Hawaii are the states that seem likely to make it to a vote.  

Northeast

In the Northeast, there have been several developments causing optimism throughout the region. New England has taken a very progressive path to legalization. Every state has a medical cannabis market and has decriminalized possession of small amounts of cannabis with the exception of New Hampshire. New Hampshire has made at least six attempts to get decriminalization measures passed, but so far these initiatives have been unsuccessful getting past the State Senate. Ironically, four dispensaries are set to open in 2016 for medical patients that meet the qualifying conditions.  

Midwest

Ohio had a ballot measure to legalize cannabis late in 2015. The legislation featured a basic monopoly on production being designated to 10 predetermined groups comprising wealthy residents. Unsurprisingly, there was overwhelming opposition, with the proposed legislation getting shot down by a margin of almost 2:1 against. We’ll likely see a second attempt to pass a legalization measure in 2016.

West Coast

With Washington and Oregon taking legalization measures, California is the next in line. At the end of the session in 2015, Californians passed the Medical Marijuana Regulation and Safety Act. This piece of legislation sets up the regulatory framework for a state-recognized medical marijuana industry. California, being one of the largest states, with a population of over 38 million residents, has had a vibrant quasi-grey market with an estimated 2,000 stores operating within the state. Despite the lack of reported sales figures, estimates of the California market are conservatively $3 billion to $5 billion annually. Should this market be legalized and regulated at some level, this could generate an estimated $450 million to $750 million in tax revenue, should the state impose a 15% tax rate. 

2016 should be another historic year for the cannabis industry. With public opinion steadily growing in support of legalization, and the hysteria of an election year, it would not be surprising to see cannabis proliferation take the forefront in the national conversation.


Jim Makoso, Vice President of Lucid Oils
Jim Makoso, Vice President of Lucid Oils

Jim Makoso is an entrepreneur in the cannabis industry. He joined Vuber Technologies as one of the original investors in February 2014. He is currently an Advisory Board Member and shareholder responsible for guiding strategic development. January 2015, Mr. Makoso founded Lucid Labs and Lucid Oils. He currently holds the position of Vice President and is responsible for strategic partnerships and business development.

 

 

 

Guest Post: Mr. Seeb Goes To Washington

by Ean Seeb, Denver Relief

Editor’s Note: In January, Ean Seeb, who serves on the Board of Directors for NCIA and is co-founder of Denver Relief and Denver Relief Consulting, coordinated with NCIA’s Director of Government Relations Michael Correia to arrange personal meetings with congressional offices in Washington, D.C.

Ean Seeb speaks at NCIA's Policy Symposium in 2015
Ean Seeb speaks at NCIA’s Policy Symposium in 2015

In December, while planning for a January business trip to Washington, D.C., I realized that I should take the opportunity to use some downtime to lobby Capitol Hill offices on issues affecting the cannabis industry. I reached out to NCIA’s Executive Director Aaron Smith and Director of Government Relations Michael Correia and announced my intention. I was amazed at their responsiveness and support for my idea.

The whole planning process was quite easy. I let them know the date I was available and the focus of my trip and let the D.C. office coordinate logistics. Denver Relief Consulting has business interests in Hawaii and I wanted to focus on that state’s Congressional delegation. My goals were to update offices on medical marijuana implementation in Hawaii and ask these offices to co-sponsor The Small Business Tax Equity Act of 2015 (S. 987 & H.R. 1855), which amends Internal Revenue Code Section 280E to allow cannabis businesses in compliance with state law to take standard tax deductions and credits relating to business expenses.

The trip went very smoothly. I met up with Michael the evening before our meetings to discuss issues and logistics. Although I am well-versed on issues affecting our industry, it was really informative for me to sit down with him and discuss our focus, strategy, and talking points. We were joined by NCIA Member Tae Darnell, CEO of Sensi Media, whose background on cannabis reform in Hawaii goes back many years and was a great asset to our meetings.

 

 

We visited offices in both the Senate and House of Representatives, and each office was very informed about cannabis issues, was responsive to our concerns, and asked insightful questions. I remember back in 2013 when NCIA held its 3rd annual member lobby days. During those meetings, staffers would drop their jaws and say “You’re here to talk about what?” It was almost humorous because, back then, staffers were still in shock that cannabis issues were being brought to them. This time, one of our meetings lasted a full hour! The reception from congressional offices has evolved significantly over the past five years, and that can be attributed to the work NCIA has done on the ground.

 

The National Cannabis Industry Association's 5th Annual Lobby Days in Washington, D.C.
The National Cannabis Industry Association’s 5th Annual Lobby Days in Washington, D.C.

Although our meetings were with Democratic offices, who tend to be supportive of our issues, they were still not co-sponsors of legislation that would solve our 280E tax problems. The offices really appreciated tying the issue to Hawaii and answering questions specifically related to the state and how 280E will negatively affect their constituents. Each of the offices will discuss co-sponsoring legislation in the future, and our D.C. office will continue working with them to gain their support.

I did my homework with information provided by NCIA through newsletters, packets, and the website. An hour’s worth of studying on the front end made for some really powerful and effective meetings. As an NCIA member, it was personally and professionally fulfilling to be able to leave the Capitol thinking, “Today, I made some good progress on our issues, and for our industry, through the work done with these folks.”

 

I wholeheartedly encourage other NCIA members not only to go to NCIA’s 6th annual Member Lobby Days in May — but also to go to D.C. on your own. The NCIA Government Relations team will be there with you every step of the way.

As I was leaving, Michael said, “Please tell other members who happen to be traveling to D.C. that we are available for any NCIA member, at any time, who wants us to coordinate personal meetings with congressional offices.”

If you are interested in contacting NCIA’s Government Relations department to schedule meetings with Members of Congress in Washington, D.C., please email Government Relations Coordinator Michelle Rutter at michelle@thecannabisindustry for more information. 


 

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Member Spotlight: New Economy Consulting

NCIA’s member spotlight for the month of February takes us to Oregon, where we speak with Sam Chapman, co-founder of New Economy Consulting, a political and business consulting firm for the legal cannabis industry. Sam’s background includes consulting for statewide political campaigns, small business development and media relations, as well as direct involvement as a lobbyist for drug policy reform at the local, state, and federal levels. Having Sam in the room at an NCIA event always raises the dialogue with his insight and expertise, and we’re glad to have him as part of the NCIA community. 

Cannabis Industry Sector:

NECRegulatory Compliance and Consulting

NCIA Member Since:

December 2013

Who does New Economy Consulting work with?

NEC provides a range of services and support to cannabis entrepreneurs, investors, and local governments. We specialize in drafting state license applications, writing and navigating local regulations, screening compliant real estate, regulatory compliance support, and political advocacy.

The New Economy Consulting Team
The New Economy Consulting Team

How do you serve your clients?

On behalf of our clients, NEC handles all aspects of licensure for retail, wholesale, production, and processing facilities. We provide clients with a holistic approach, encompassing services from locating and screening compliant property, to compliant buildout design and supervision, to local and state compliance inspection support.

What makes NEC unique?

NEC is unique in that our business consulting services are directly informed by our active political lobbying. Our researchers maintain a finger on the daily pulse of regulatory movement in the industry at both the state and local level. We strategically deploy our proprietary research in support of our client’s business ventures. An example of where NEC goes above and beyond for clients is in tracking the local regulations of over 90 Oregon counties and cities. This body of research allows NEC to quickly and confidently screen property and determine that property’s compliance with current and expected rules and regulations.

Sam Chapman, NEC co-founder
Sam Chapman, NEC co-founder

What has been NEC’s largest impact on the Oregon cannabis industry?

Before I co-founded NEC, I helped write and pass HB 3460, which legalized and regulated medical dispensaries in Oregon. NEC has successfully championed many pro-industry causes including raising more than $30,000 in support of Measure 91, legalizing the adult use of cannabis.

What should clients know before contacting NEC?

NEC is a boutique firm with a strong commitment to our clients. We choose our client and partner relationships with care. Our ideal client is well-capitalized, with business experience inside and out of the cannabis industry, has a clear vision of their project goals, and shares in our vision of creating and maintaining an industry to be proud of. We take great pride in contributing to the new marijuana economy while simultaneously supporting and shaping social justice reforms at the state, local, and federal level.

You work primarily in Oregon, which is an evolving landscape when it comes to marijuana policy and regulations. Can you briefly summarize the important regulatory frameworks that exist for business owners, and what changes are on the horizon for this market?

The Oregon Legislative Committee on Marijuana Legalization is considering many changes to the existing recreational program, including the potential removal of the residency requirements for recreational licenses. The committee has historically been hesitant to allow out-of-state majority ownership of Oregon marijuana businesses. However, many committee members have recently expressed that they now view residency requirements as a barrier for local business to raise much-needed capital.

While there is no guarantee that the current residency requirements will be eliminated, NEC has already begun to identify current and future market opportunities available to out-of-state business owners and investors.

Why did you join NCIA?

NEC enthusiastically joined NCIA as a member in 2013 and supports NCIA’s strategic lobbying at the federal level and especially their focus on our industry’s need for banking reform and 280E tax solutions. We strongly feel that the National Cannabis Industry Association is the tip of the spear when it comes to fighting for the federal reforms that affect all marijuana businesses on a daily basis.

Contact:

New Economy Consulting website

State of the States: NCIA’s Affiliate Program

What is NCIA’s state affiliate program?

Over the last two years, members from particular states have approached us here at NCIA with the idea of forming state-focused affiliates. While NCIA’s mission is dedicated to federal policy change and the support of a national industry that is coordinated, sustainable, and responsible, we’ve begun a journey with a few of these dedicated members looking to do the same at the state level. Many of our members are already familiar with our state affiliates in California and Illinois.

NCIA dedicates its policy work to issues at the federal level, which informs the playing field for all 50 states. However, individual state cannabis markets have their own unique needs and challenges. An NCIA state affiliate is tasked with pursuing the same priorities as NCIA’s federal mission – advocacy, education, and community – but with a zoomed-in focus on state legislation and regulations, city ordinances, and local networking and business development. The combination of NCIA and a state affiliate gives members a powerfully unified voice in influencing legislation that is fair towards our industry.

How does the state affiliate program work?

Each state affiliate is an independent entity from NCIA, which elects its own board of directors and has its own decision-making processes. The affiliates are non-profit organizations, and dues are collected from members to be used for state advocacy work.

Membership dues for the state affiliate are split between the state affiliate and NCIA, and members of the state affiliate are automatically added to the rosters of NCIA’s national membership, although many members still choose to maintain separate memberships with both the state affiliate and NCIA.

Our state affiliates currently exist in the two most populous states with active medical marijuana programs in place: California and Illinois. We checked in with the leadership of each affiliate to hear more about their progress and activities at the state level.

 

CCIA-LogoCCIA-Logo-300x294California Cannabis Industry Association (CCIA)

CCIA’s Executive Director and co-founder is Nate Bradley, who works closely with their official lobbyist, Amy Jenkins, to influence fair legislation and policies for the ever-evolving cannabis industry. CCIA’s membership currently sits at 132 members and growing. 

“In 2015, CCIA hosted numerous well-attended membership networking and educational events throughout the state,” says Bradley. “We also added new staff to our ranks. In the fall we hired a Membership Coordinator. This in turn greatly increased our ability to reach out and provide services to our current members and build new membership at the same time.”

CCIA focuses on the state regulatory structure for California’s cannabis industry, working to influence regulations for the medical marijuana industry in the state legislature. CCIA has endorsed the Adult Use of Marijuana Act (AUMA), a full legalization state ballot initiative being proposed for 2016. 

“More than any other legalization measures competing for the 2016 state ballot, AUMA represents the collective input of California’s lawful medical cannabis industry,” said CCIA President Sean Luse, who is also COO of the nation’s longest continually operating medical cannabis dispensary, Berkeley Patients Group.

So what are CCIA’s plans for the upcoming year?

“CCIA has a lot of big plans for 2016,” says Bradley. “Currently we are planning on bringing a new deputy director, increasing the amount of events we hold, developing our local government outreach program, and increasing the amount of membership committees we have.”

“We will also be heavily involved in any legislation clean-up, tracking the regulatory rule-writing process, and last but not least, making sure we are actively involved in influencing any cannabis ballot initiatives that may go before voters in November.”

CCIA’s 2015 victories are listed here, along with details of the requests that were successfully negotiated and included in the Medical Marijuana Regulation and Safety Act.

 

IllinoisCIA_Logo_FNL_RGB_ForWebIllinois Cannabis Industry Association (ILCIA)

Kayvan Khalatbari, co-founder of Denver Relief, serves on the board of directors for ILCIA and offers insight into the progress of its formation over the last year. “With all the work the National Cannabis Industry Association is doing to progress policy, advocacy, and education on the federal level, it’s important to have that same influence on the state level,” says Khalatbari.

“We’re working hard to create a model that is in line with NCIA’s mission and tone, but also considerate of the cultural and political nuances present in Illinois. We’ve assembled a great group to form our initial board of directors, which includes cultivation and dispensary operators, attorneys, lobbyists and ancillary service providers… in a sense, most stakeholders in this new and exciting industry. We intend on bringing aboard a doctor and a patient representative as well in this new year to ensure all voices relevant to the success of this industry have a seat at the table.”

kayvan
Kayvan Khalatbari, co-founder of Denver Relief and board member of ILCIA

“With our current 25 members we have some room to grow, but have no doubt that will happen as we become more active and visible in 2016. Between assisting in the development and implementation of the NCIA local Cannabis Caucuses here in Chicago, assembling our own quarterly educational symposiums, networking events, and a lobby day in April, as well as collaborating with other groups to add qualifying conditions in the medical cannabis program, we’re poised to make a big push in having a positive and responsible influence as this industry gets off the ground here.”

“The bridge to our national partners at NCIA can only benefit that push forward and help ensure that cannabis businesses in Illinois are represented at all levels of government for years to come.”

 

Looking to get involved in one of our state affiliates? Visit their websites:

CCIA – www.cacannabisindustry.org

ILCIA – www.ilcia.org

 


Join us for our 6th Annual NCIA Member Lobby Days in Washington, D.C. on May 12 & 13, 2016.

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2016: What’s Next?

by Michelle Rutter, Government Relations Coordinator

This year is arguably the most crucial yet for the burgeoning cannabis industry, especially as it relates to policy. Although NCIA primarily advocates for cannabis reform at the federal level, what happens in each individual state is vital to the stances Members of Congress take on our issues.

Members of Congress care deeply about issues that directly affect their specific state or district. It’s imperative that more states enact cannabis reform legislation so that more Members have a vested interest in protecting their constituents. While cannabis reform is sweeping the nation at an almost unprecedented rate, it takes time for politicians in Washington, D.C., to catch up with public opinion back home. If all of the federal lawmakers representing just the 15 states mentioned below were to vote positively on pro-cannabis legislation, it would add up to more than 180 Representatives and nearly 30 Senators.

Take a look below and see what’s coming up next in 2016. Remember that by becoming a member of NCIA, you are adding your voice to the coordinated and unified campaign at the federal level to allow cannabis businesses access to financial services, fix tax section 280E, and ultimately end federal cannabis prohibition.

The United States of Cannabis

          • Arizona activists remain ahead of schedule and have nearly gathered the 150,000 signatures needed to put the state’s Campaign to Regulate Marijuana Like Alcohol initiative on the November 2016 ballot. (The campaign ultimately aims to collect 230,000 in order to insure against signature drop-off.) It’s estimated that Arizona’s adult-use market could be worth up to $480 million.
          • With a multi-billion-dollar cannabis industry in California alone, passing an adult-use legalization initiative in the state is vital to ending federal prohibition. The most prominent full retail initiative gathering signatures for the November 2016 election is the Adult Use of Marijuana Act, which is backed by billionaire Sean Parker and the Marijuana Policy Project.
          • Legalize Maine and the Marijuana Policy Project have joined forces to legalize adult-use cannabis in 2016. Legalize Maine has already collected 80,000 signatures. Only 61,000 signatures are necessary to place the measure on a statewide ballot, but the organization’s goal is 95,000, to insure against drop-off. The deadline to submit signatures is February 1st.
          • Last August, a pair of cannabis advocacy groups separately filed paperwork to get adult-use legalization on the 2016 ballot in Massachusetts. The state recently confirmed that a measure to legalize recreational cannabis next year has enough valid signatures to force the legislature to consider the measure. If the legislature decides to pass, then the campaign will have to collect another 10,792 signatures to formally make the November ballot.
          • There’s no question that adult-use legalization will be on the ballot this year in Nevada. Initiative Petition 1, which would tax and regulate marijuana similarly to alcohol, has been certified for the 2016 ballot. Backers had previously collected nearly 200,000 signatures to either force legislators to enact their initiative or put it on the ballot. When state lawmakers abstained from voting on the issue, the measure was automatically forwarded to this year’s ballot for a popular vote.
          • In Florida, the group United for Care received clearance from the state Supreme Court for a 2016 ballot measure that would legalize medical marijuana. The group nearly succeeded in legalizing medical marijuana in 2014, garnering 58% of the vote but falling barely short of the state’s constitutionally mandated 60% margin needed to pass, 
          • The nation’s capital continues to debate cannabis. In December’s federal budget bill, the taxation and regulation of marijuana in Washington, D.C., was blocked by Congress again, though possessing and gifting cannabis remains legal in the city.
          • This month, Hawaii will begin accepting applications for medical cannabis businesses. The bill signed into law last summer opens the door for up to 16 dispensaries on the islands.
          • It was recently announced that Illinois saw approximately $1.7 million in medical cannabis sales during November and December of 2015. There are already petitions being circulated in the state that would expand the law’s qualifying conditions.
          • Maryland will award cannabis cultivation, processing, and dispensary licenses this summer. Industry advocates were pleased with the amount of interest the state’s program garnered: more than 1,000 applications were submitted.
          • Officials in Michigan have approved language for three different adult-use cannabis legalization initiatives for the 2016 ballot. In order to have the best chance of passing, it’s important for these groups to coalesce behind one initiative.
          • At the end of 2015, New Hampshire began issuing medical marijuana cards to qualifying patients. It’s expected that the state will open medical dispensaries in 2016.Map-of-US-state-cannabis-laws
          • After a long and arduous journey, New York’s medical cannabis program became operational this month. The cannabis industry expects the program and the law’s qualifying conditions to expand this year.
          • In the first week of 2016, Oregon began accepting adult-use cannabis business license applications. The state has no limit on how many licenses they will decide to award.
          • Vermont may become the first state to legalize adult-use cannabis through the legislative process in 2016. The proposed bill would allow for up to 86 storefronts and five different business license types.

 

Bonus: Election 2016 – Yes, We Canna

            • As we all know, a new president will be elected this November, and with that a new administration will assume power next January. It is very crucial that Congress pass more pro-cannabis legislation before then.
            • It’s probable that Attorney General Loretta Lynch will be replaced in 2016 or early 2017. This is important because it is the Department of Justice that enforces and prosecutes federal marijuana laws.
            • Another possibility for 2016 is that the acting head of the Drug Enforcement Administration, Chuck Rosenberg, could be replaced as well. Rosenberg is notorious for his gaffe last year when he called marijuana “probably” less dangerous than heroin.
            • On New Year’s Eve, officials from the Substance Abuse and Mental Health Services Administration posted a notice on the Federal Register that calls for a report “presenting the state of the science on substance use, addiction and health” to be released in 2016. Industry advocates are hopeful that this report could be the first sign of re- or de-scheduling cannabis from the Controlled Substances Act.
            • During 2016, NCIA will continue working with D.C.-based public affairs firms Heather Podesta + Partners, and Jochum Shore & Trossevin PC to magnify our efforts to address the industry’s top federal priorities: access to basic banking services and fair federal taxation.

 

In addition to NCIA’s lobbying and advocacy efforts, NCIA exists to connect and educate our members on all facets of the cannabis industry. Our industry supports tens of thousands of jobs, tens of millions in tax revenue, and billions in economic activity in the United States. Our core mission is to ensure that our members are treated like businesses in any other American industry. Join NCIA today to get involved and be a part of the cannabis revolution!


Join us for our 6th Annual NCIA Member Lobby Days in Washington, D.C. on May 12 & 13, 2016.

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Timeline: 2015 Legislative Year in Review

by Michelle Rutter, Government Relations Coordinator

As we look forward to 2016, there’s much on the horizon for the cannabis industry. NCIA remains dedicated in its effort to pass banking and tax legislation through Congress that would provide immediate relief to cannabis-related businesses all over the country.

In addition to the federal advocacy that NCIA engages in every day, there will be at least five states seeking to legalize and regulate adult-use cannabis via the ballot initiative process: Arizona, California, Maine, Massachusetts, and Nevada. It’s also likely that Florida will have another ballot initiative relating to medical cannabis, and it’s possible that other states will move forward with cannabis reform through ballot initiatives or legislative processes. What happens over the next twelve months will be crucial in shaping the future of the legitimate and responsible cannabis industry.

While 2015 was a milestone year for cannabis reform, that same momentum will be necessary in order to continue moving the conversation forward with Congress in Washington, D.C. The Rohrabacher-Farr medical cannabis amendment earned more that 60 Republicans votes. For the first time ever, there are multiple pro-cannabis bills that have been introduced in the U.S. Senate. Continued progress is vital in garnering more national support for cannabis reform, so make sure your interests are heard through national advocacy, education, and community with NCIA.

The timeline below lays out some of the highlights from a busy year in cannabis industry advocacy. We look forward to more exciting milestones with your help in 2016!

*Click on the “Full Screen” button (with the four arrows) at the bottom of the image to expand its size. 

Guest Post: Legislation, Rule-Making, and the Necessity to Be a Unified Industry

teamworkBy John Davis, Northwest Patient Resource Center

In the 2015 legislative session, much changed in Washington State cannabis law. As with any change in cannabis law in any state, there is much drama that happens after such a change. Usually there is much bickering, finger-pointing, rumors, and misinformation in general. People seem to come out of the woodwork with often nonsensical interpretations of the new law. This often makes me wonder where they were during the legislative session when they may have been able to change the details that seem to trouble them now.

The fact is that all laws passed are imperfect. They are going to need to be fixed and those fixes are going to need to be fixed. There is not just one person that writes what is passed as law. There is a plethora of authors that include industry, interest groups, law enforcement, localities, citizen groups, and many others. Omnibus laws are going to advance some things and create problems elsewhere. This is to be expected.

The thing about law is, once it has passed and been signed by the Governor, it is what it is until the next session. This is not the time for bickering for those that are serious about making positive change. This becomes a time to work together. Once a bill becomes law, the legislative verbiage is put through a process called “rule-making.” In this rule-making, things can be steered within the framework of the law. In addition, the time before the next legislative session is a perfect time to solicit consensus and to author and shop legislative verbiage to potential bill sponsors.

After passage, no matter whether you like the law or not, it needs to be studied. It should be done dispassionately. It should be done section by section. You should ask yourself:

  • What does this section say?
  • What is the legislative intent of the section?
  • What is the synopsis of the section?
  • What rule-making does this section call for and by which agency?
  • Are there things in this section that need to be changed in subsequent legislative sessions?

You should write your answers to these questions down so that you can refer to them later. This is the way that you can be most effective at influencing rule-making and achieving success in subsequent legislative sessions. Really, how are you to influence rule-making when you don’t know what rule-making is going to happen with which agency? How are you going to achieve consensus enough to get changes in a legislative session when you don’t know specifically what needs to change?

We in the cannabis industry need to stop the self-destructive habit of thinking of legislative changes as “good” or “bad.” During session we need to do our best to be influential to produce the best results possible. After a law is passed we must come together to produce the best possible results in rule-making and plan for the next legislative session. To do this we need to stop finger-pointing and work together. Divisiveness and name-calling poisons the well for consensus-building.

Approaching a rule-making body or legislature as one person or organization is not going to be very influential.

Approaching the same as an industry with a common voice is powerful and will be extremely helpful in creating positive change.

We must put aside the pettiness and ego and work together for the betterment of the industry and the movement. Those that are willing to work together need to be finding the others that are willing to work together. We need to be focused on listening to others in the industry to understand what their ideas and concerns are. We need to include the end users and to consider their points of view. We need to have patience with each other. We need to put in the work to build consensus on the changes that need to be made. We need to be willing to compromise for the greater good. We need to accept that what happens in the end will not be perfect. We need to, in short, be an industry.

Prohibition is the enemy, not each other. To that end, we have been working to bring together the various industry groups in Washington State to form a super organization that is allied in its purpose. The Coalition for Cannabis Standards and Ethics, CAUSE-M, WAMJA, WMA and Northwest Producers, Processors, and Retailers have formed a Steering Committee to bring these organizations under a common banner. These groups represent the full spectrum of the industry, consisting of producers, processors, retailers, and ancillary businesses. It is my belief that there needs to be industry consensus even when there may be differences in perspective. Retailers and producers working against each other in a lobby effort really just has the effect of negating both. We are looking forward to merging together and ultimately forming a commission that is state-recognized.

Together we will move into the future.


John Davis, Northwest Patient Resource Center
John Davis, Northwest Patient Resource Center

John Davis, an entrepreneur and drug policy activist in Seattle, is founder of Northwest Patient Resource Center. After managing the oldest and longest running medical cannabis dispensary in the state, Compassion In Action, John founded Northwest Patient Resource Center, where he currently serves as the organization’s Chief Executive Officer. John is a founder of the Coalition for Cannabis Standards and Ethics (CCSE) and currently serves as the Executive Director of the industry group. He also chairs the CCSE Access Point Subcommittee. John is on the Board of Directors of the National Cannabis Industry Association (NCIA) and the Cannabis Defense Coalition (CDC), and is on the Advisory Board for Blue Sage Microbes and Life Sense Technologies.

Guest Post: Growing Pains in Michigan

(As with all Guest Posts on NCIA’s website, this post solely represents the views and opinions of its author and does not represent an NCIA endorsement or official position. ~ eds.)

by Matthew Abel, Cannabis Counsel P.L.C.

Michigan is poised for change, as it has been for years. Almost seven years of the Michigan Medical Marihuana Act (sponsored by MPP in 2008) has brought plenty of litigation, but no legal dispensaries. That seems likely to change in 2016, one way or another.

Matthew Abel speaks to the crowd at Hash Bash
Matthew Abel speaks to the crowd at Hash Bash in Ann Arbor, MI

It is possible that the Michigan legislature, which has done nothing to improve the stalemate on dispensaries and the questionable legality of anything other than “dried leaves and flowers,” may finally move forward. The dispensary and extracts bills now are joined by a seed-to-sale tracking system. That finally may overcome the objections of those coddling law enforcement, who see enforcement having to move on to other things (like violations of the new regulations).

Multiple legalization petitions are afoot. One would set up a three-tiered system like the clumsy, expensive, and oligopolistic Michigan liquor control framework. It has taken years to allow brewpubs in this state. Even now, a small local brewery is prohibited from selling directly to retail outlets; everything must go through one of the few beer and wine wholesalers, who take a cut (of course). Even that, however, is not the worst part of the ballot initiative being circulated by the Michigan Cannabis Coalition. The worst part is that any violation of the law still would be a crime. Growing more plants than allowed (two flowering plants, or potentially four if the municipality allows it) would be a felony. Selling to anyone without a license would still be a felony.

The proposal I favor (and which I helped draft) is sponsored by MILegalize. Aside from allowing distribution directly from cultivator to retailer, the main benefit of this legalization proposal is that it no longer criminalizes marijuana except for providing to minors or for driving under the influence. As we move from prohibition to legalization, we need to remember that much of the benefit of legalization is the concept of generally removing marijuana from the illegal market, with the huge savings of lives and money which accompany the move to put cannabis distribution into the legal market.

MILegalize is the right form of legalization. It removes most criminal penalties for cannabis. Eliminating crime by design of our drug laws and treating it as a public health issue, rather than a criminal justice issue, is a healthy change. That is the best reason to support the model put forward by MILegalize, as opposed to the three-tiered system proposed by the Michigan Cannabis Coalition.

For those who need to see a direct economic benefit before considering financially supporting this initiative, don’t be shortsighted. Michigan has a population twice the size of Colorado. MILegalize has no residency requirement, no financial bars to entry, and no caps on size or number or growers, processors or retailers (that is left up to each municipality, who stand to recover 20% of the excise tax imposed at the retail level).

Marijuana legalization in the face of continued criminal punishment in not nearly as sweet. I cut my teeth as a criminal defense attorney, and have had the unfortunate opportunity to see, up close, the negative unintended consequences of a medical marijuana law which is far too restrictive and fails both in providing necessary products and access, while also failing to protect those who are intended to benefit from the law. We need to not continue to make the same mistakes in the progression toward full legalization.

As a person who wants to see government work for the people, we need to recognize that the law itself is most of the problem, and leaving criminal penalties in place only perpetuates the problem.

For more information on MILegalize or to make a contribution, visit www.milegalize.com.

Matthew Abel, Cannabis Counsel, PLC, based in Detroit, MI
Matthew Abel, Cannabis Counsel, PLC, based in Detroit, MI

Matthew Abel is Executive Director of Michigan NORML and Senior Partner of the Detroit law firm Cannabis Counsel, P.L.C. He has been a member of NCIA since July 2013. Mr. Abel has been a criminal defense lawyer with a special focus on marijuana cases for more than 20 years. Mr. Abel’s Detroit-based law office capably handles marijuana possession, trafficking and distribution cases throughout the state of Michigan. His marijuana-specific practice areas include smuggling issues on the U.S.-Canadian border, asset forfeiture that victimizes clients, and questionable drug testing procedures.

He is a lifetime member of the NORML Legal Committee and the National Association of Criminal Defense Lawyers, and a member of Criminal Defense Attorneys of Michigan, the National Lawyers Guild, Americans for Safe Access, and the legal committee of the ACLU of Michigan. He has lectured on Michigan Medical Marihuana Law for Oaksterdam University in Michigan, the Michigan Cannabis College, MedGrow Cannabis College, the Michigan Institute for Continuing Legal Education, the Cannabis Career Institute, and to bar associations throughout Michigan. Mr. Abel was Director of the Committee for a Safer Michigan, sponsor of an unsuccessful 2012 Michigan Constitutional Amendment Ballot Question Committee, to repeal marijuana prohibition in Michigan for adults 21 and over. www.repealtoday.org

Number of marijuana license seekers in Illinois tops expectations | Chicago Tribune

Illinois received 369 applications for medical marijuana business licenses, which means about 1 in 5 applications will win approval to open grow houses and retail centers in the state.

The state received 211 applications for dispensaries — retail shops for medical marijuana — and 158 applications for grow centers. Illinois will allow 60 dispensaries statewide and 21 grow centers.

Bob Morgan, statewide project coordinator for the Illinois Medical Cannabis Pilot Program, said the number of applications, which were due Monday, was higher than anticipated.

Read more: Number of marijuana license seekers in Illinois tops expectations | Chicago Tribune

Inside the Illinois Medical Marijuana Program with the Illinois Cannabis Industry Association

The Illinois Cannabis Industry Association (ILCIA) is the official Illinois affiliate of NCIA. In advance of NCIA’s Illinois Member Reception and Federal Policy Update on Tuesday, Sept. 16, in Chicago, two of ILCIA’s board members – Dan Linn and Ali Nagib – talked with us about the latest developments for the Illinois medical marijuana pilot program.

ilcia_logo

The number of licenses for cultivation centers and dispensaries are quite limited – only 22 available for cultivation centers and 60 for dispensaries. What are officials with the Illinois Department of Agriculture looking at in applications to determine who will be awarded a license? Is there a chance to earn bonus points in any category?

Dan: The Department of Agriculture will be grading on a number of different features but the grow plan and horticultural experience will be heavily weighted in the scoring. In the event of a tie between competing applications for a single license the application with the higher scored grow plan will be awarded the license.

Ali: The main required categories don’t have specific bonus points available, but each application has an entire Bonus Section of areas that are not required but available for applicants to gain additional points if the required sections meet a certain score threshold.  The Bonus Section areas include Labor and Employment Practices, a Research Plan, a Community Benefits Plan, a Substance Abuse Prevention Plan, a Local Community/Neighborhood Report, an Environmental Plan as well as additional points for Illinois-based applicants and businesses that are minority-owned, female-owned, veteran-owned, or owned by a person with a disability.

Dan-Linn-Picture-193x250
Dan Linn, ILCIA

State officials are making security a high priority for all applications. What kind of standards must applicants meet in their business plan regarding security measures? 

Dan: Applicants will need to have full seed-to-sale inventory tracking accessible in real time by the Illinois State Police.  Security measures will need to include listings of where the bulletproof glass is on the floor diagram of the dispensary, the camera field of vision, the proper-sized televisions to monitor the cameras, as well as background checks on everyone involved in the program.

What is the climate regarding banking access in Illinois? Have any banks come out to say they will allow cannabis businesses to open bank accounts?

Dan: Some banks are just unwilling to work with the cannabis industry. None have publicly come out as being willing to engage this industry, but there are a number of smaller community banks that are handling accounts for cannabis businesses in Illinois.

September 22 is the deadline for submitting applications to open a cultivation center or dispensary. What does the timeline look like for when licenses will be awarded and when is it expected that dispensaries will actually be selling product?

Ali: Recent public reports indicate that licenses will likely be issued later in the fall, probably in November or December. Based on that timeline dispensaries should be open with product on the shelves for patients in late spring/early summer of 2015.

How many expected applications for cultivation centers and dispensaries will be submitted by the September 22 deadline?

Ali: It is likely that there will be an average of at least a few applicants for each of the 82 available licenses, with total applicants numbering anywhere from 250-600.

Applications also just opened for qualifying medical patients to apply for access to medical marijuana. What is the timeline for qualifying patients to apply and when will patients find out if they are accepted into the program?

Ali: Patients with last names beginning A-L can apply now through Oct 31. Patients with last names beginning M-Z can apply Nov. 1-Dec. 31 and beginning Jan. 1 there will be open year-round enrollment for all patients. The state has 30 days by law to process a patient application, plus 14 days to mail it. This means that patients should expect to receive their approval or denial within 45 days of submission.

What are some of the regulations regarding edibles and other infused products?

Ali Nagib
Ali Nagib, ILCIA

Ali: Edibles and other infused products can be produced, but only those that can be kept at room temperature safely; products that require hot-holding or refrigeration are prohibited. Otherwise a wide range of infused products can be produced, and the state regulations have some fairly specific guidelines on the some of the production processes (e.g. which solvents can be used to produce concentrates) in addition to robust testing and labeling requirements.

Dan: Additionally, edibles and infused products must be produced in a sanitary kitchen and cannot look like candy or any name-brand food items.

What is the anticipated cost per ounce once product starts becoming available?

Dan: $250-400 is the estimated initial expected cost per ounce.

Ali: The early stages of the Medical Cannabis Pilot Program are likely to see a wide range of prices and substantial fluctuations as early supply and demand features work themselves out. It is almost certain that initial prices will be above those currently found on the illegal market, if not substantially so, but how the industry will react to the patient demand is uncertain.

The Illinois program is a pilot program that currently expires in 2017, and lawmakers must renew or extend the program at that time. What do you think lawmakers will be considering when deciding to renew or extend the program when the time comes?

Dan: They will be examining any instances of diversion, shenanigans, positive health experiences for patients, jobs created, who is the next President of the United States, how much revenue the program is creating, and probably what the overall public opinion of the program is.

Ali: We expect that by early 2017 the local and national landscape on cannabis policy reform will have continued to progress to the point that we won’t be debating whether or not to extend the pilot program but rather how and when to transition to a full tax-and-regulate framework and how to incorporate medical cannabis patients into it.

Don’t miss your chance to meet the people shaping the landscape of medical marijuana in Illinois. Register online for our upcoming Illinois Member Reception! If you have additional questions about the event please contact us at events@thecannabisindustry.org.

Inside the Illinois Medical Marijuana Program with the Illinois Cannabis Industry Association

The Illinois Cannabis Industry Association (ILCIA) is the official Illinois affiliate of NCIA. In advance of NCIA’s Illinois Member Reception and Federal Policy Update on Tuesday, Sept. 16, in Chicago, two of ILCIA’s board members – Dan Linn and Ali Nagib – talked with us about the latest developments for the Illinois medical marijuana pilot program.

ilcia_logo

The number of licenses for cultivation centers and dispensaries are quite limited – only 22 available for cultivation centers and 60 for dispensaries. What are officials with the Illinois Department of Agriculture looking at in applications to determine who will be awarded a license? Is there a chance to earn bonus points in any category?

Dan: The Department of Agriculture will be grading on a number of different features but the grow plan and horticultural experience will be heavily weighted in the scoring. In the event of a tie between competing applications for a single license the application with the higher scored grow plan will be awarded the license.

Ali: The main required categories don’t have specific bonus points available, but each application has an entire Bonus Section of areas that are not required but available for applicants to gain additional points if the required sections meet a certain score threshold.  The Bonus Section areas include Labor and Employment Practices, a Research Plan, a Community Benefits Plan, a Substance Abuse Prevention Plan, a Local Community/Neighborhood Report, an Environmental Plan as well as additional points for Illinois-based applicants and businesses that are minority-owned, female-owned, veteran-owned, or owned by a person with a disability.

Dan-Linn-Picture-193x250
Dan Linn, ILCIA

State officials are making security a high priority for all applications. What kind of standards must applicants meet in their business plan regarding security measures? 

Dan: Applicants will need to have full seed-to-sale inventory tracking accessible in real time by the Illinois State Police.  Security measures will need to include listings of where the bulletproof glass is on the floor diagram of the dispensary, the camera field of vision, the proper-sized televisions to monitor the cameras, as well as background checks on everyone involved in the program.

What is the climate regarding banking access in Illinois? Have any banks come out to say they will allow cannabis businesses to open bank accounts?

Dan: Some banks are just unwilling to work with the cannabis industry. None have publicly come out as being willing to engage this industry, but there are a number of smaller community banks that are handling accounts for cannabis businesses in Illinois.

September 22 is the deadline for submitting applications to open a cultivation center or dispensary. What does the timeline look like for when licenses will be awarded and when is it expected that dispensaries will actually be selling product?

Ali: Recent public reports indicate that licenses will likely be issued later in the fall, probably in November or December. Based on that timeline dispensaries should be open with product on the shelves for patients in late spring/early summer of 2015.

How many expected applications for cultivation centers and dispensaries will be submitted by the September 22 deadline?

Ali: It is likely that there will be an average of at least a few applicants for each of the 82 available licenses, with total applicants numbering anywhere from 250-600.

Applications also just opened for qualifying medical patients to apply for access to medical marijuana. What is the timeline for qualifying patients to apply and when will patients find out if they are accepted into the program?

Ali: Patients with last names beginning A-L can apply now through Oct 31. Patients with last names beginning M-Z can apply Nov. 1-Dec. 31 and beginning Jan. 1 there will be open year-round enrollment for all patients. The state has 30 days by law to process a patient application, plus 14 days to mail it. This means that patients should expect to receive their approval or denial within 45 days of submission.

What are some of the regulations regarding edibles and other infused products?

Ali Nagib
Ali Nagib, ILCIA

Ali: Edibles and other infused products can be produced, but only those that can be kept at room temperature safely; products that require hot-holding or refrigeration are prohibited. Otherwise a wide range of infused products can be produced, and the state regulations have some fairly specific guidelines on the some of the production processes (e.g. which solvents can be used to produce concentrates) in addition to robust testing and labeling requirements.

Dan: Additionally, edibles and infused products must be produced in a sanitary kitchen and cannot look like candy or any name-brand food items.

What is the anticipated cost per ounce once product starts becoming available?

Dan: $250-400 is the estimated initial expected cost per ounce.

Ali: The early stages of the Medical Cannabis Pilot Program are likely to see a wide range of prices and substantial fluctuations as early supply and demand features work themselves out. It is almost certain that initial prices will be above those currently found on the illegal market, if not substantially so, but how the industry will react to the patient demand is uncertain.

The Illinois program is a pilot program that currently expires in 2017, and lawmakers must renew or extend the program at that time. What do you think lawmakers will be considering when deciding to renew or extend the program when the time comes?

Dan: They will be examining any instances of diversion, shenanigans, positive health experiences for patients, jobs created, who is the next President of the United States, how much revenue the program is creating, and probably what the overall public opinion of the program is.

Ali: We expect that by early 2017 the local and national landscape on cannabis policy reform will have continued to progress to the point that we won’t be debating whether or not to extend the pilot program but rather how and when to transition to a full tax-and-regulate framework and how to incorporate medical cannabis patients into it.

Don’t miss your chance to meet the people shaping the landscape of medical marijuana in Illinois. Register online for our upcoming Illinois Member Reception! If you have additional questions about the event please contact us at events@thecannabisindustry.org.

Illinois Medical Marijuana Program Accepting Applications

IllinoisAfter months of planning, the state of Illinois has officially begun accepting applications from potential medical marijuana patients and business owners for its Medical Cannabis Pilot Program.

On Tuesday, September 2, Illinois officials began processing paperwork from potential patients whose last names begin with the letters A through L. By the end of the first week, according to the Chicago Sun-Timesmore than 2,000 applications had been received. (Patients with names beginning with the letters M through Z will be eligible to apply beginning November 1.)

The pilot program’s coordinator, Bob Morgan, expressed excitement over the large number of patient applications in the very early days of the process. “It’s a strong indication of the interest in the program,” he told the Sun-Times.

The dispensary and cultivation licensing process promises to be a bit more challenging. With only 22 licenses available for cultivation centers and 60 for dispensaries, competition will likely be stiff, especially for the large Chicago market. (See this interactive graphic from the Chicago Daily Herald for more details on where the 60 dispensary licenses will be allocated.) The application process is extensive, and the capital requirements for applicants are steep. Even successful applicants will have to consider the “pilot” nature of the program, which includes the possibility that it could sunset after a few years.

As Troy Dayton, CEO of NCIA Sustaining Member The Arcview Group, told Chicago’s WBEZ Radio, “[Business owners] had better have a lot of money in the bank because it may be a long ramp up before they can make their businesses profitable.”

Despite these challenges, medical marijuana is coming to Illinois, and with it comes opportunity. Soon, the fifth-largest state in the nation will offer patients the potentially life-changing choice to access medical marijuana, and that’s progress to celebrate.

Are you applying for a dispensary or cultivation license in Illinois? Share your experience in the comment section below.

Cannabis Industry Teaches and Learns in Nevada

NCIA’s 2nd Annual Southwest CannaBusiness Symposium Brings Together Cannabis Industry Leaders in Las Vegas

On Saturday, August 23, NCIA hosted cannabis industry professionals for a day of information-packed sessions at its second annual Southwest CannaBusiness Symposium in Las Vegas, Nevada. Opening remarks featured Aaron Smith, executive director of NCIA, Congresswoman Dina Titus (D-Las Vegas) and Nevada State Senator Tick Segerblom (D-Las Vegas). Comments from the panelists focused on the local political atmosphere, touching on how Nevada, having passed legislation lasVictor_Symposiumt year to set up a statewide medical program, is currently reviewing applications for licenses for medical marijuana dispensaries and cultivation centers. Additionally the Nevada legislature will consider a full legalization initiative during the 2015 session, although passage would require a 2/3 vote in both chambers. If the measure fails in the legislature, Nevada voters will have a chance to directly vote on legalization as a ballot initiative in 2016. Both Rep. Titus and Sen. Segerblom encouraged attendees to reach out to them and keep an open dialogue so that they can best represent the industry by understanding its needs.

The second panel, titled “Infused Products & Edibles Discussion,” featured experts in the fields of extraction, analytical testing, edible manufacturing, and retailing of infused products. Discussed on this panel were the importance of analytical lab testing to ensure quality products, the basics of different types of extraction methods, how to find your edible niche and establishing a brand, and the importance of educating your customers on the effects of infused products. Featured on this panel were Andy Joseph of Apeks Supercritical, Adam Mintz of Steep Hill Halent Labs, Julianna Carella of Auntie Dolores and Étienne Fontan of Berkeley Patients Group.

After these first two panels, attendees broke for a networking lunch where they could talk one-on-one and meet others already involved or looking to get into the industry. Walking around the conference floor you could hear conversations such as “What are current marketing regulations surrounding the sale of cannabis and infused products like in CO or WA?” and “How are you involved or wanting to be involved in the industry?” as well as lengthy discussions on attendees’ experiences infused products panelregarding the Nevada application process which ended earlier in the week. Attendees also had the chance to visit sponsor booths to find out more about their products and services. The symposium’s sponsors this year included Eden Labs, MJ Freeway, Steep Hill Halent Labs of Nevada, Apeks Supercritical, HempMeds PX, and the ArcView Group.

Following lunch, the panel “Maintaining Responsible Business Practices” featured several distinct topics regarding establishing a culture of responsible practices within your business. The first topic highlighted the importance of setting standards of practice and self-regulation, especially regarding implementing programs that encourage customers to keep marijuana out of the hands of youth. Other topics included information on managing employees and effective human resource strategies, trademarking and protecting your brand, and an array of sustainable business practices that aid in lowering waste and increasing profits while contributing to a cleaner environment overall. Featured on this panel was Leslie Bocskor of Electrum Partners LLC, Carole Richter of CRichter ~ HR Consulting, LLC, Amanda Conley of Cobalt LLP, and Alex Cooley of Solstice Co-op.

Michael Correia, director of government relations for NCIA, followed to provide a federal update about what’s been happening in Congress. We’ve seen some positive movement within the House of Representatives recently. This past May, for the first time in history, a chamber of Congress passed pro-marijuana legislation. Congressmen Dana Rohrabacher (R-CA) and Sam Farr (D-CA) introduced an amendment to the appropriations bill covering the Department of Justice that limited the Department of Justice and DEA from interfering with states moving forward on medical marijuana. It passed 219-189, with an astonishing 49 Republicans supporting. Currently, the legislation is in the Senate and has Senators Rand Paul (R-KY) and Cory Booker (D-NJ) as co-sponsors. In addition, on July 16th, the House passed a similar amendment that would prohibit the Department of Treasury from penalizing banks that do business with state-compliant marijuana businesses. It passed 231-192, with 45 Republicans supporting it.

Rounding out the update was the mention of a potential upcoming issue that may have large implications for any marijuana cultivators using federal water reserves to grow. The Bureau of Reclamation, which manages water for the federal government, has stated that federal water should not be used for state-legal marijuana cultivation, since marijuana remains federally illegal. Although it is not yet a large issue, and so far the Bureau has only said that they will refer such cases to the Department of Justice, it looms as a potential trouble spot in Colorado and Washington State, and because Nevada gets most of its water from federal sources, it will likely become an issue in that state as well. Currently the Bureau of Reclamation isbackofcrowd moving cautiously, and a group of senators have asked the Justice Department to give further legal guidance on this. NCIA will be providing updates on this issue as they are available.

The panel “Effective Messaging for Cannabis Professionals” rounded out the day and focused on tactics to use when talking with the media to communicate your message most effectively. Taylor West, deputy director of NCIA, provided advice focused on talking about a medical use program. She touched on the story of the development of the medical cannabis program in Nevada and the importance of emphasizing passion and compassion for patients. That story includes the quality of your product, your dedicated service, and your compassionate care in providing medicine to patients to improve their lives. Joe Brezny, executive director of the Nevada Cannabis Industry Association, provided advice on speaking with the media about the upcoming Nevada full-legalization measure. He touched on the Nevada Regulate Marijuana like Alcohol campaign messaging, which emphasizes that regulated marijuana is no worse than alcohol, that the marijuana market in Nevada is already present but in a black market run by cartels and drug dealers, and that legalizing and regulating marijuana is proving to work in states that have done so already. His key takeaways were that state-specific messaging is important to make it relevant to the political landscape of that state.

Thanks to everyone who joined us in Las Vegas for another successful event. Make sure you don’t miss any other great educational and networking events we have coming up!

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September 9, 2014  – Start Making Sense – A Cannabis Industry Fundraiser for Students for Sensible Drug Policy

September 16, 2014 – Illinois Member Reception and Federal Policy Update

September 29, 2014 – ServSafe® Food Handler Course Presented by NCIA & Cannabis Trainers

October 27-29,2014 – Infused Product and Extraction Symposium

November 13, 2014 – NCIA’s 4th Anniversary Dinner

Florida Medical Marijuana Constitutional Amendment Clears Final Hurdle

Yesterday, the language of the constitutional amendment to allow Floridians access to medical marijuana was approved by the state Supreme Court, placing the ballot question in front of voters this November, where it is expected to be approved given the strong support it already enjoys from Florida voters.

The initiative itself is quite brief in comparison to other laws which have recently passed and leaves most of the details of implementation to regulatory bodies. Importantly, patients with conditions such as PTSD, dementia, and other conditions aided by cannabis but not typically included in medical marijuana qualifying conditions will have the opportunity to legally access cannabis as the law allows patients to be qualified if their “physician believes that the medical use of marijuana would likely outweigh the potential health risks.”

Additionally, the measure defines a “medical marijuana treatment center” as an “entity that acquires, cultivates, possesses, processes (including development of related products such as food, tinctures, aerosols, oils, or ointments), transfers, transports, sells, distributes, dispenses, or administers marijuana, products containing marijuana, related supplies, or educational materials to qualifying patients or their personal caregivers and is registered by the Department.” The Department of Health is required to issue regulations within six months instituting “procedures for the registration of Medical Marijuana Treatment Centers that include procedures for the issuance, renewal, suspension, and revocation of registration, and standards to ensure security, record keeping, testing, labeling, inspection, and safety.”

Importantly, the measure’s presence on the ballot could set the stage for the first election with national prominence where safe access to medical marijuana is a critical issue for candidates. As Reuters reports, a strong majority of Florida voters support the measure including a majority of Republicans. However, in what is expected to be a closely fought battle, Florida’s incumbent Republican Governor Rick Scott is opposed to the measure while his challenger, Democrat Charlie Crist, openly supports it. Marijuana policy advocates watching this race should expect to note a distinct increase in conversations — both publicly and privately — about the merits of legal medical marijuana among those interested in the race.

The United for Care campaign, a project of People United for Medical Marijuana, has received the bulk of its financial support from prominent Orlando attorney John Morgan, whose father and brother both benefited from the use of medical marijuana. The campaign is being managed by veteran Florida politico Ben Pollara, and has the support of many local and national organizations. And, while the measure is certainly expected to pass, the Florida legislature is currently considering other bills which would bring medical cannabis to Floridians even more quickly.

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