State-Level Insights: Momentum Builds Across Our Nation
By Sadaf Naushad, NCIA Intern
Although the action-packed April must come to an end, the fight for cannabis reform never stops! With U.S. Senators delaying the much-anticipated introduction of the Cannabis Administration and Opportunity Act (CAOA) last month, Congress has a lot of work to do.
In the meantime, a congressional bicameral bipartisan committee is considering the Secure and Fair Enforcement (SAFE) Banking Act as an amendment to the House’s U.S. Innovation and Competition (COMPETES) Act.
Now let’s focus on action occurring within the states. State-level updates help provide us with insights on cannabis reform progress at the federal level. As more state constituents vote in favor of cannabis initiatives, reformation support overall increases within the United States. Efforts to reform cannabis policies at the state level encourage members of Congress at the federal level to enact legislation.
Let’s take a look at this week’s state-level insights:
New York
As the legal cannabis market is set to launch later this year, New York lawmakers intend to ensure that a sufficient supply of marijauna exists. Last month, state regulators voted to allow conditional marijuana cultivation licenses to several hemp businesses. Regulators also established that adults with prior cannabis convictions, along with family members who have previously faced criminalization, would receive the first round of adult-use cannabis retailer licenses – ahead of present medical marijuana businesses. This week, lawmakers recently approved a second round of applications for recreational cannabis cultivators. Additionally, the Cannabis Control Board (CCB) passed amended regulations granting medical marijuana patients to grow their own plants for personal use.
Delaware
A Delaware House Committee approved a bill that would terminate 50 years of cannabis prohibition and criminalization. For the second time in history, Delaware’s District 24 Representative Ed Osienski (D) introduced House Bill 371, legislation legalizing cannabis possession and gifting. The legislation is attached to a companion measure that would build a regulatory framework for the market. Its two-piece model comes after the House defeated a prior measure in March that incorporated both components.
South Carolina
An eight-year attempt to legalize medical marijuana in a largely conservative state abruptly came to an end on the House floor Wednesday. South Carolina’s District 13 Representative and House Leader John McCravy (R) ruled that the Session 124 measure comprises an unconstitutional tax increase, thereby ceasing further consideration of the bill. According to Representative McCravy, since the bill contains a tax on medical cannabis, lawmakers should have introduced the bill in the House under the state constitution’s article for legislation that raises revenue. The bill’s sponsor, U.S. Senator Tom Davis (R), is rapidly seeking other ways to keep the issue active as the session concludes.
Missouri
In preparation for the 2022 midterm elections, a Missouri House Committee approved a GOP-led joint resolution seeking to place cannabis legalization on the November ballot. Missouri’s District 98 Representative Shamed Dogan (R) sponsored an amended version of the legislation, in which The Special Committee on Criminal Justice passed in a 7-2 vote. The amended bill eliminated provisions that would remove the state’s current separate medical marijuana program and set regulations regarding taxation in the legal market. Under the amended resolution, marijuana offenses would be removed from the Missouri criminal statute, permitting adults to possess, use and sell cannabis without facing penalties.
Washington
State officials Lieutenant Governor Denny Heck (D), Attorney General Bob Ferguson (D), Treasurer Mike Pellicciotti (D) and Governor Jay Inslee (D) sent a letter to congressional leaders, outlining the urgency of passing the Secure and Fair Enforcement (SAFE) Banking Act. With Washington being one of the first states to legalize cannabis, lawmakers remain frustrated at the industry’s lack of access to essential financial services stemming from federal prohibition.
New Jersey
Last month the state attorney general’s office released a controversial document detailing how New Jersey’s marijuana laws currently authorize police to use cannabis when not working. This week, New Jersey lawmakers introduced a string of bills designed to encourage employers to penalize workers from consuming cannabis off duty in compliance with state law. Punishable workers specifically include law enforcement officers and first responders. Now, three new bills exist that intend to enforce restrictions on such activity for particular employees. New Jersey’s 6th Legislative District Representative Louis Greenwald (D) aims to amend state statute to contain the following provisions: penalizing police for using cannabis, conducting random drug tests and the right to refuse job applicants due to lawful cannabis use. Although Representative Greenwald’s bill targets police officers, two other measures presently remain that would also impose employment-based restrictions on lawful marijuana use.
Ohio
The Coalition to Regulate Marijuana Like Alcohol (CTRMLA) filed a lawsuit to keep cannabis legalization on Ohio’s November 2022 ballot. In December 2021, CTRMLA turned in petition signatures to Ohio’s secretary of state’s office, but the office deemed the signatures insufficient. To advance the legislative review of their measure, CTRMLA turned in additional petitions on January 13, 2022. According to the state statute, however, a ballot petition must be submitted “no less than ten days prior to the commencement of any session of the general assembly.” The session commenced on January 19, falling outside of that ten-day certification window. As a result, CTRMLA contacted Franklin County Court of Common Pleas, requesting a ruling on a prospective challenge concerning the timing of the group’s initial signature submission to Ohio for the reform proposal.
Stay tuned for more updates on cannabis policy reform. If you are interested in learning more about NCIA’s government relations work and how to get involved please reach out to Madeline@thecannabisindustry.org.
(Another) Historic Week In Congress for Cannabis Reform
Photo By CannabisCamera.com
By Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations
Usually, progress is slow in Washington, D.C. However, that has not been the case lately! Within the last week, the U.S. House of Representatives has passed both the Marijuana Opportunity, Reinvestment and Expungement (MORE) Act and the Marijuana Research Act! They passed by a vote of 220-204 and 343-75, respectively. Let’s take a look at the bills and what’s next for them:
The MORE Act
Last week, the MORE Act came to the House floor for the second time in history. It was first voted on in December 2020, when it passed by a margin of 228-164.
Revisions from the last session include the removal of a provision that would have allowed federal regulators to deny cannabis business licenses to applicants who have prior felony convictions. Other changes from the introduced text this session include revisions to property requirements, allowing operators to secure those locations after receiving a federal license.
A number of amendments were offered at a Rules Committee hearing to advance the bill, however, only three were ruled in order. The first passed on a roll call vote and was introduced by Rep. Josh Gottheimer (D-NJ), authorizing $10M for the National Highway Traffic Safety Administration to conduct a study on technologies and methods that law enforcement may use to determine whether a driver is impaired by marijuana.
Another amendment, introduced by Rep. Conor Lamb (D-PA) directs the National Institute for Occupational Safety and Health (NIOSH) to conduct a study on the impact of legalization to the workplace, using states that have legalized recreational use of cannabis as a guide, and requires NIOSH to develop best practices for employers as companies transition their policies related to cannabis, prioritizing employers engaged in federal infrastructure projects, transportation, public safety, and national security. Additionally, it directs the Department of Education to conduct a study on the impact of legalization on schools and school-aged children, using states that have legalized recreational use of cannabis as a guide, and requires the Department of Education to develop best practices for educators and administrators to protect children from any negative impacts.” It passed on a roll call vote.
Another amendment, which failed on a roll call vote was offered by Rep. Jamie Raskin (D-MD) would have required federal agencies to review security clearance denials going back to 1971 and retroactively make it so cannabis could not be used “as a reason to deny or rescind a security clearance.”
While there is currently no companion bill in the Senate, Majority Leader Schumer (D-NY) along with Senators Booker (D-NJ) and Wyden (D-OR) is expected to introduce a comprehensive cannabis reform bill over the next month.
Marijuana Research Act
More recently, the House also passed the Marijuana Research Act sponsored by Reps. Earl Blumenauer (D-OR) and Andy Harris (R-MD). This bill would remove barriers for researchers seeking to apply and get approved to study cannabis, set clear deadlines for federal agencies to act on their applications, and also make it easier for scientists to modify their research protocols without having to seek federal approval.
Last month, the Senate also unanimously passed a research bill: the Cannabidiol Marihuana Research Expansion Act, sponsored by Sens. Feinstein (D-CA), Grassley (R-IA), and Schatz (D-HI). It remains to be seen whether the two chambers will be able to negotiate a deal on these research provisions to send to President Joe Biden.
Whether it’s cannabis research or descheduling, the NCIA D.C. team continues to increase momentum for reform. Interested in learning more about our efforts in D.C.? Consider becoming an Evergreen member today!
Member Blog: “Food Safe” Gloves Cause Cannabis Recall
A pesticide-free cannabis producer and processor from Washington was recently forced to issue a recall after the chemical o-Phenylphenol (OPP), traced back to their “food safe” gloves, was found on its products. OPP, listed under California Proposition 65 as a chemical known to cause cancer, was found in the food-safe gloves they were using to handle their crop.
In a statement announcing the recall, the company said, “Nothing ruins your day like testing your product, confident it will be clean, only to find it contaminated with some crazy, toxic chemical. The gloves were the last thing we tested, we just never imagined something sold as food safe could transfer such nastiness. The discovery was just the beginning… recalls are costly in more ways than one.”
Why “food safe” gloves can cause a recall
After initial approval, non-sterile FDA compliant food grade gloves are not subject to ongoing controls to ensure the reliability and consistency of raw material ingredients or quality processes during manufacturing. Opportunity exists for glove manufacturers to use cheap raw materials which lower glove durability and can introduce toxic compounds, which can transfer not only to products handled but also to glove users.
Demand for lower costs from the end-user pressures glove manufacturers to sacrifice quality, and substitute other compounds to meet these demands. This can include increased levels of cyanide, fungicides, inexpensive phthalate plasticizers, or others on the Prop. 65 list of chemicals known to cause cancer.
Steve Ardagh, CEO of Eagle Protect, a specialist glove supplier explains, “People assume ‘food grade’ gloves are clean and toxin free, but that’s not necessarily the case. The actual FDA Compliance does not even require gloves to be tested clean or sanitary which surprises most people. Having tested 25 different brands of gloves, we’ve found everything from feces, fungicides, Staphylococcus, yeast, and mold,” says Ardagh, “due to putrid water sources and unhygienic manufacturing conditions.”
Recalls & brand reputational damage
Single-use gloves, even those FDA compliant, can be a risk to product recalls and brand reputation. Peer-reviewed scientific studies have identified harmful toxins and contaminants in and on single-use gloves. These “food handling” gloves pose risks for companies producing consumer products, especially in industries such as organics and cannabis whose products must be clean if tested.
Staff & consumer risks
In addition, staff wearing contaminated gloves are at risk of absorbing toxins, as are the consumers of products contaminated by gloves. The contaminants have often been identified as causing cancer, and reproductive and hormonal damage.
Mitigating glove contamination risks
Gloves are often purchased with little thought or foresight into their risks. Cost is commonly the determining factor in their procurement decision-making. However, sourcing gloves from established companies who partner directly with glove manufacturers to ensure consistent quality is essential for all cannabis companies. Gloves may seem trivial, but can cause fines up to $200,000, put consumers and staff at risk, and damage brand reputation.
This is especially important currently in the post-COVID world as the glove market is being flooded with counterfeit and reject quality gloves. The new glove suppliers, traders, and brokers who came into the COVID PPE space with little or no experience, with an intention to simply trade and make quick money, are now bailing out of their poor quality junk gloves and dumping them into the U.S. market. Consider the following before purchasing gloves:
Is your glove supplier reputable, with a long history of glove sourcing direct from the manufacturer and proven quality control processes in place?
Can your glove supplier ensure your glove quality is consistently high through documented factory audits, HACCP compliance certifications and quality processes?
Have you undergone a commercial trial of products prior to committing to purchasing to ensure glove quality is consistently high?
After establishing Eagle Protect as an industry leader in New Zealand, where the company supplies approximately 80% of the primary food processing industry, Steve Ardagh relocated with his family to the U.S. in January 2016 and launched Eagle Protect PBC. Steve brought with him Eagle’s values of providing products that are certified food safe, ethically sourced and environmentally better. Steve is driven to keep consumers safe, one high-quality disposable glove at a time, and has been instrumental in developing Eagle’s proprietary third-party Fingerprint Glove Analysis glove testing program.
Eagle Protect, the world’s only glove and PPE supplier to be a Certified B Corporation®. Eagle Protect supplies disposable gloves and protective clothing to the food processing, food service, cannabis, medical and dentistry sectors in both the U.S. and New Zealand.
Eagle is implementing a proprietary third-party glove analysis to ensure a range of their gloves are of consistent high-quality, and free from harmful contaminants, toxins, and pathogens.
Crazy for Cannabis Administration and Opportunity Act (CAOA)
Photo By CannabisCamera.com
By Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations
Last week was undoubtedly one of the most exciting weeks in federal cannabis policy ever! On July 14, Senate Majority Leader Chuck Schumer (D-NY), along with Sen. Cory Booker (D-NJ) and Senate Finance Committee Chair Ron Wyden (D-OR), unveiled long-awaited draft legislation that would remove cannabis from the schedule of controlled substances while allowing states to determine their own cannabis policies. Let’s take a look at what we know:
What is it?
You’ll recall that back in February, the trio of Senators announced that they were working on a comprehensive cannabis bill. Since then, NCIA and other advocates have (im)patiently been waiting to see what shape that would take – I was calling it the best-kept secret in Washington! However, at long last, the discussion draft of the Cannabis Administration and Opportunity Act (CAOA) was released.
A discussion draft is exactly what it sounds like – prior to introducing this language as formal legislation, the Senators have shared it in this form, allowing stakeholders, the public, and others the opportunity to weigh in and provide their expertise and feedback.
What’s in it?
As I mentioned above, the CAOA removes cannabis from the list of controlled substances, effectively legalizing it at the federal level while still allowing states to set their own policies. According to the bill’s detailed summary, it has a few goals:
“… [it will] Ensure that Americans – especially Black and Brown Americans – no longer have to fear arrest or be barred from public housing or federal financial aid for higher education for using cannabis in states where it’s legal. State-compliant cannabis businesses will finally be treated like other businesses and allowed access to essential financial services, like bank accounts and loans. Medical research will no longer be stifled.”
The bill also includes:
Restorative measures for people and communities who were unfairly targeted in the war on drugs.
Automatic expungements for federal non-violent marijuana crimes and allows an individual currently serving time in federal prison for nonviolent marijuana crimes to petition a court for resentencing.
An “Opportunity Trust Fund” funded by federal cannabis tax revenue to reinvest in the communities most impacted by the failed war on drugs, as well as helping to level the playing field for entrepreneurs of color who continue to face barriers of access to the industry.
An end to discrimination in federal public benefits for medical marijuana patients and adult-use consumers.
Respect for state cannabis laws and a path for responsible federal regulation of the cannabis industry. Like with federal regulations on alcohol, under CAOA, states can determine their own cannabis laws, but federal prohibition will no longer be an obstacle. Regulatory responsibility will be moved from the U.S. Drug Enforcement Agency (DEA) to the Alcohol and Tobacco Tax and Trade Bureau (TTB), the Bureau of Alcohol Tobacco Firearms and Explosives (ATF), as well as the Food and Drug Administration (FDA) to protect public health.
A federal tax structure – CAOA would impose an excise tax on cannabis products in a manner similar to the tax imposed on alcohol and tobacco. The general rate of tax would be 10 percent for the year of enactment and the first full calendar year after enactment. The tax rate would increase annually to 15 percent, 20 percent, and 25 percent in the following years.
What’s next?
The discussion draft comment and feedback process will be ongoing until September 1. Until then, NCIA will be working with our board, Policy Council, committees, and our members (particularly our Evergreen members!) to solicit their expert input on some of the areas the Senators have expressed interest in. After that deadline, the Senators will take their time to review submissions and subsequently formally introduce the revised language later this year. Stay tuned via our newsletter, blog, and upcoming events to learn the latest on this and how you can actually submit your thoughts to us!
Hurry Up And Wait: Descheduling, DEA Licenses, And Other Reform Legislation to Watch
By Morgan Fox, NCIA’s Director of Media Relations
The cannabis world is still eagerly awaiting the introduction of Senate Majority Leader Chuck Schumer’s comprehensive descheduling legislation, but that doesn’t mean things haven’t been moving on the policy front in recent weeks!
First up, the DEA announced that it was finally moving forward with approving applications to cultivate cannabis for research purposes, which would effectively end the federal government’s stranglehold on research production. The agency spent years fending off lawsuits from applicants, who correctly asserted that not only was the monopoly limiting research, but the cannabis being grown at the single licensed facility at the University of Mississippi was basically unusable for research purposes anyway. This announcement comes several years after the DEA publicly stated that it would begin the licensing process. Better late than never.
Next, Sen. Ron Wyden, who is also working closely with Majority Leader Schumer on descheduling along with Sen. Cory Booker, introduced S. 1698 last week. While text of this bill is currently not publicly available, the name suggests that this legislation would direct the FDA to allow hemp-derived CBD, made legal under the 2018 Farm Bill, to be used as a dietary supplement or in food. Some perceive this bill as necessary to get some regulatory clarity from the FDA, which has been dragging its feet and missed several deadlines for CBD regulations. Many in the industry blame this lack of regulation for larger retailers staying out of the CBD market, which has led to massive supply gluts of the substance and has been hypothesized to be a leading cause for the recent boom in Delta 8 THC production.
And earlier this month, Rep. David Joyce, an Ohio Republican who co-chairs the Congressional Cannabis Caucus, introduced a narrowly tailored bill to remove cannabis from the schedule of controlled substances. The bill assigns regulatory responsibilities to the FDA and the Alcohol and Tobacco Tax and Trade Bureau and gives them a one-year deadline to come up with a regulatory structure similar to alcohol. It also contains provisions similar to the protections that exist in the House-approved SAFE Banking Act, calls for studies on how cannabis impacts pain and driving, and improves access for veterans. Notably, this bill does not contain any social equity or restorative justice language.
While the chances of such legislation passing in the Democrat-controlled House are slim, it could serve as a doorway to get fence-sitting Republicans into the debate. It could also be a tool to identify those members of the GOP who are steadfastly opposed to any legalization bill and out of touch with their constituents, many of whom would directly benefit from cannabis policy reforms and who are increasingly in support of ending federal prohibition.
We’re also getting word that the Marijuana Opportunity, Reinvestment, and Expungement (MORE) Act is getting reintroduced in the House this week (and may have already been at the time of this publication). This legislation made history last December when it became the first descheduling bill to receive a floor vote – and pass – in either chamber of Congress. We are hopeful that there will be some revisions from the previous bill, including the removal of a provision that would allow federal licensors to deny applications for cannabis business licenses based on prior state or federal felony convictions, and the inclusion of a more sensible and robust regulatory framework.
We are less than halfway through the calendar year, and it is shaping up to be a momentous one for cannabis advocacy! Stay tuned for more updates from Capitol Hill.
P.S. On the state side, Alabama became the latest state to approve an effective medical cannabis law. Yes, Alabama. That brings the count of medical states to 36, after unfortunately losing Mississippi to a shameful court decision. So far in 2021, four states have approved adult-use or medical cannabis legislation, and more are expected to do so in the coming weeks and months.
Cannabis Advertising, Marketing, and Branding Restrictions are Aimed at Preventing Youth Use, So Why Are We Driving Them to Drink?
by Rachel Kurtz-McAlaine, NCIA Deputy Director of Public Policy
A Seattle Hempfest lawsuit against the Washington State Liquor and Cannabis Board asks this question.
The title for this piece was inspired by the late Steve Fox, one of the founders of the National Cannabis Industry Association and co-author of the book, “Marijuana Is Safer: So Why Are We Driving People to Drink?” Written in 2009, it questioned why we were punishing adults for choosing a safer alternative to alcohol by criminalizing cannabis use while alcohol was legal. But it remains relevant when considering the laws and regulations under which each respective industry operates.
Last week I wrote about SMS text messaging and the challenges the cannabis industry is currently facing. The industry turns to SMS (text messaging) to a large extent for marketing purposes, often connected with loyalty programs. SMS is a great way to reach someone who specifically asked to receive the marketing and has already been vetted at the store to be over 21, which is huge in an industry with so many restrictions around marketing, advertising, and branding.
But a lawsuit currently under appeal at the Washington State Court of Appeals (having been passed down by the Wash. Supreme Court) is questioning some of these restrictions, especially when compared to the dearth of alcohol marketing restrictions. Seattle Events, who produces Seattle Hempfest, and a couple of legally licensed Washington cannabis companies brought the lawsuit against the Washington State Liquor and Cannabis Board (WSLCB) challenging some statutes and regulations that unfairly harm the industry and Hempfest by imposing restrictions around marketing, advertising, and branding that are not based on any meaningful data and are far more severe than restrictions around alcohol marketing. The differences are pretty stark when comparing the marketing rules and regulations on alcohol RCW 66.08.060 and WAC 314-52-070 with those on cannabis RCW 69.50.369 and WAC 314-55-155.
In Appellant’s Opening Brief, Hempfest and the other appellants offer convincing arguments on First Amendment grounds and broader free speech protections under the Washington state constitution for why some regulations are over-restrictive, but they also make very clear they agree that the prevention of use by youth is a valid state interest. In general, the cannabis industry is interested in keeping cannabis away from minors except for medical purposes – it’s one of the reasons we promote a safe, legal, regulated market. (To fully understand the legal arguments in this appeal, read the WSLCB, et. al/Respondents’ Brief here, and Hempfest, et al./Appellants’ Reply to the Response here.)
As more and more states legalize cannabis for medical and adult-use, and descheduling is contemplated at the federal level, lawmakers and regulators are working with the cannabis industry to craft rules and regulations around such things as marketing. State policymakers are connecting with each other to see where they can make their regulations more uniform, and federal policymakers are considering to what extent they’ll regulate marketing at the federal level on top of what the states do individually.
While these conversations are happening, it’s important to keep in mind the real-world effects these regulations have on the cannabis industry and if they’re unnecessarily more restrictive than the alcohol industry. That’s not to say the cannabis industry wants to look like the alcohol industry, being sold next to toys at Target, or mixing intoxication with driving by sponsoring NASCAR, but sometimes the industry is accused of purposely marketing towards kids for things like infused gummy candies when adults regularly use gummies to take vitamins.
The industry needs to take control of the narrative around youth prevention, working with agencies around rational messaging and regulations. The alcohol industry has a close relationship with the state and federal agencies that regulate it. In fact, a large part of marketing restrictions are self-regulatory standards, aimed to discourage underage drinking, that are entirely voluntary. The more we as an industry can voluntarily create marketing standards, the less likely harsher regulations will need to be implemented. Cronos, an NCIA Evergreen member and a leader in the international cannabis market, recently released its own standards limiting marketing to youth, and NCIA committees frequently release standards that are best practices for the industry.
The cannabis industry is incredibly creative, and thinking outside the box toward what appeals to adults without marketing to kids can be rewarding. The NCIA Marketing and Advertising Committee recently held a contest for best marketing around the 4/20 holiday. You can check out the webinar showcasing the best of that contest for examples on how creative we can be.
The cannabis industry wants to be a shining example of what a responsible industry can look like, that includes how advertising, marketing, and branding might interact with youth. But it is important to use real data for what actually works, come up with voluntary standards, and not put unnecessary restraints on an industry that is under enough restraint.
(If you’re interested in contributing to an Amicus Brief in support of Seattle Hempfest’s lawsuit, please contact Rachel.)
Video: NCIA Today – Special Episode with NCIA’s Michael Correia On The Historic MORE Act House Vote
Join NCIA Deputy Director of Communications Bethany Moore and our Government Relations Director Mike Correia for a quick discussion about last week’s historic passage of the MORE Act.
On Friday, December 4, the House of Representatives made history by voting to approve H.R. 3884, the Marijuana Opportunity, Reinvestment, and Expungement (MORE) Act.
The MORE Act would remove marijuana from the federal Controlled Substances Act and work to repair the social and personal harms caused by federal marijuana enforcement. This is the first time since marijuana was made federally illegal that either chamber of Congress has held a floor vote on- or approved- a bill to make the substance legal again.
The final vote count of 228-164 fell mostly along party lines, with five Republicans crossing the aisle to support, and six Democrats voting to oppose.
This monumental victory shows just how far Congress has come over the years. Although this vote more closely aligns the House of Representatives with the majority of voters who overwhelmingly support cannabis legalization, the Senate is a different story.
Looking Back On #10YearsOfNCIA: 2016-2017
Photo By CannabisCamera.com
by Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations
Over the last month, I’ve been taking a retrospective look at the progress NCIA has made in the ten years since its inception. While it’s been fun to look back at those early years, this week I’m excited to look at a time when cannabis policy was getting really active: 2016-2017! While this timeline is by no means a comprehensive look at everything that’s happened in cannabis policy during those years, here are some highlights:
January 2016
District judge dismisses lawsuit against the Fed, filed by the Fourth Corner Credit Union, says Congress must fix the cannabis banking problem. The same month, President Obama announces that cannabis reform is not on his agenda in 2016.
March 2016
The Supreme Court dismisses Kansas’ challenge to Colorado marijuana laws. The 6-2 vote meant the nation’s highest court would not rule on the interstate dispute, and Colorado’s legal cannabis market remains safe. “Since Colorado voters overwhelmingly passed legal recreational marijuana in 2012, we have worked diligently to put in place a regulatory framework — the first in the world — that allows this new industry to operate while protecting public health and safety,” then- Gov. John Hickenlooper (D) said following the decision. “With today’s Supreme Court ruling, the work we’ve completed so far remains intact.”
An AP poll shows that 61% of Americans support legalizing cannabis. The most recent Gallup poll on the issue, published in October 2019, shows that approval number has risen to 66%.
April 2016
U.S. Senate Caucus on International Narcotics Control holds a hearing titled “Is the Department of Justice Adequately Protecting the Public from the Impact of State Recreational Marijuana Legalization?”
May 2016
NCIA holds its 6th Annual Cannabis Industry Lobby Day in D.C., garnering over 150 attendees and participating in more than 200 scheduled meetings on Capitol Hill. That same month, the Tax Foundation reports a legal marijuana industry could mean up to $28 billion in federal, state, and local tax revenues.
June 2016
NCIA hosts our 3rd Annual Cannabis Business Summit in Oakland with 3,000+ attendees. That same month, the U.S. Senate Appropriations committee narrowly approved a marijuana banking amendment. Ultimately, the amendment did not make it into law. The amendment has not passed this specific Committee since, though we continue to try!
July 2016
Showing increased interest and momentum on this issue, the U.S. Senate Judiciary Committee holds a hearing on the potential benefits of medical marijuana. The same month, the Democratic Party included reclassifying cannabis in the party’s platform.
August 2016
This was an exciting month because we got to really see our efforts at work in the real world. Four years ago this month, the Ninth Circuit Court of Appeals ruled that due to the Rohrabacher-Farr amendment, the Department of Justice cannot use funds to enforce federal law against state-legal medical cannabis businesses.
September 2016
U.S. Attorney General Loretta Lynch says that marijuana is not a gateway drug, but that same month, FBI data showed that there is one cannabis arrest every 49 seconds in the U.S. The majority of those individuals are Black and brown and are arrested four to eight times more than their white counterparts.
October 2016
Members of Congress and the campaigns to legalize cannabis in various forms enter the final push. That month, a report also showed that Colorado’s marijuana industry had a $2.39 billion financial impact and created more than 18,000 jobs in the state.
November 2016
Five states (Arizona, California, Maine, Massachusetts, and Nevada) voted on ballot initiatives to legalize, tax, and regulate marijuana for adult use. Four of those initiatives passed, and three of them passed by more than seven percentage points.
Four states (Arkansas, Florida, Montana, and North Dakota) voted on ballot initiatives to create or expand legal medical marijuana programs. All four of those initiatives passed, with an average victory of 26.3 percentage points.
Of course, November 2016 is also when Republicans took control of both chambers of Congress and candidate Trump became president-elect Trump.
January 2017
NCIA establishes the Policy Council to serve as the industry’s “think tank” in D.C., developing and publishing policy papers to educate policymakers and other stakeholders on topics relevant to the cannabis industry. The same month, Sen. Jeff Sessions (R-AL) begins his confirmation hearing to become U.S. Attorney General. He is subsequently confirmed, bringing uncertainty to the cannabis space.
February 2017
White House press secretary Sean Spicer said that he expects states to see “greater enforcement” of the federal law against marijuana use, a move that would be at odds with a growing number of states’ decisions to legalize it. Spicer, taking questions from reporters at the daily briefing, differentiated between the administration’s positions on medical marijuana and recreational marijuana. Funnily enough, Spicer’s career lasted about as long as it takes me to smoke a joint.
The nation’s first-ever Congressional Cannabis Caucus is formed by Reps. Rohrabacher (R-CA) and Blumenauer (D-OR) with help from friends Reps. Polis (D-CO) and Young (R-AK). In the 116th Congress, Rohrbacher and Polis left Congress and were replaced by Barbara Lee, a Democrat from California, and David Joyce, a Republican from Ohio, as co-chairs.
May 2017
NCIA’s D.C. team grew from two (myself and Mike) to three, with the addition of Maddy Grant, who was our Government Relations Coordinator at the time. Since then, Maddy has become one of my best friends and was even one of my bridesmaids! If you know Maddy, you know she’s the best and NCIA is lucky to have her!
NCIA held its 7th Annual Cannabis Industry Lobby Days in Washington, D.C., where 250 industry professionals coalesced on Capitol Hill to attend over 300 scheduled meetings. Following that, there was a substantial increase in the number of cosponsors on cannabis-related bills compared to the previous Congressional session.
July 2017
The Senate Appropriations Committee voted on their equivalent of the Rohrabacher-Farr amendment, sponsored by the committee’s vice chairman, Patrick Leahy (D-VT). That amendment passed on a voice vote and was the first time ever that a cannabis-related amendment passed in such a manner. At the end of July, the Senate Appropriations Committee also adopted an amendment that would allow the Department of Veterans Affairs to recommend medical cannabis in states. That amendment passed by a vote of 24 to 7 – the most votes this measure has ever received in the Senate. The veterans’ measure did not end up becoming law.
September 2017
The House Rules Committee held a hearing to discuss amendments to the upcoming appropriations bill that will fund the federal government for the upcoming fiscal year and chose not to vote on the amendment that protects medical cannabis businesses, patients, and programs. Since the protections for medical cannabis businesses were included in the Senate’s version of the budget bill but are not included in the House’s versions, it came down to a conference committee to negotiate its inclusion, and ultimately, the provision remained in law.
December 2017
Senate Republicans passed their tax reform package into law. Sen. Cory Gardner (R-CO) introduced two amendments to the bill that targeted 280E, however, he withdrew both amendments before the final bill was voted on.
If you think reminiscing on all that was a lot, make sure you keep an eye on our blog and future issues of NCIA’s Cannabusiness Leader to learn more about 2018-2019 and the progress we’ve made more recently as we wrap up this series!
SAFE Banking Provision of Federal Relief Package Approved in House, Faces Difficult Path in Senate
by Morgan Fox, NCIA’s Director of Media Relations
It’s been a busy week for NCIA in our nation’s capital as we try to make sure the industry can survive the pandemic and continue to develop and thrive once the country begins to focus on recovery.
Earlier this month, NCIA and a coalition of advocacy and industry groups sent a letter to Congress urging them to include the SAFE Banking Act in the next stimulus package. We worked diligently with allies and our champions in the House to this end, reminding lawmakers that this legislation was approved with an overwhelming bipartisan majority in a stand-alone bill last September and that the pandemic was creating even more need for cannabis businesses to be able to access banking services immediately.
Unfortunately, the partisan backlash to the Democrat-backed legislation was almost immediate, with some lawmakers opting to use this necessary and nearly revenue-neutral provision of the legislation as a punching bag and a symbol of overreach in the lower chamber. Republican lawmakers decried things as irrelevant as the number of times the word “cannabis” appeared in the language and claimed that this provision did not belong in a COVID-related bill. Senate Majority Leader Mitch McConnell even complained about a section of the bill that would study diversity in cannabis banking access and cost a practically infinitesimal percentage of this roughly $3 TRILLION stimulus bill.
This misdirected vitriol was thankfully not enough to block cannabis banking reform from moving forward. On Friday, the House approved the HEROES Act with the SAFE Banking language included!
The public health and safety benefits of allowing cannabis banking are undeniable. Our industry employs hundreds of thousands of Americans and has been deemed ‘essential’ in most states. Forcing the majority of them to deal almost entirely in cash puts workers at risk of infection from the cash they are handling. It makes the social distancing that is so important to getting this pandemic under control much more difficult and increases the danger for workers and consumers, particularly immunocompromised patients. The public safety concerns regarding cash being a target for crime will only grow as unemployment rates increase around the country.
The economic benefit to post-COVID recovery is clear as well. Lack of access to banking and other financial services will ensure that the cannabis industry – which has been exemplary in providing continuous healthcare, preserving jobs, and generating much-needed tax revenue during this disaster – recovers at a significantly slower pace than other industries. We deserve fair access to the financial systems utilized by every other legitimate industry.
Make no mistake: this is a big step forward for cannabis policy reform. But now comes the hard part – convincing the Senate to support this legislation. With or without cannabis banking language, all signs point to an uphill battle getting the Senate to consider any additional coronavirus relief spending. But that’s all the more reason to redouble our efforts, and support continues to grow. This week, a bipartisan group of 34 state attorneys general added their voices to the chorus calling for cannabis banking reform.
And with the chances for direct access to federal relief funding looking increasingly slim, it is absolutely vital that we do everything we can to push this legislation forward.
Please contact your senators today and ask them to support the HEROES Act with the House-approved cannabis banking provisions.
Meet The Team: Rachel Kurtz – NCIA’s Deputy Director of Public Policy
I grew up an Army brat. By 1992, when I was 18 years old, I had lived in Wisconsin, New York, Texas, Oklahoma, Indiana, Alabama, and Germany. I was fortunate my father served during a 23 year period where he would never be sent into a conflict, especially as a physical therapist. I reaped the benefits of experiencing various cultures and socialized medicine.
I started my cannabis activism in 1995 volunteering with the Washington Hemp Education Network in Olympia, WA, while attending The Evergreen State College. Following a stint in Congressman Brian Baird’s district office, I went to law school at the University of Washington School of Law, figuring that having a law degree would give me more respect while pushing for such a controversial issue. Serendipitously, during my 2L year, the King County Bar Association (where my school was located) started a Drug Policy Project, where I was fortunate to get a job after graduation. I worked there, and simultaneously for the Voluntary Committee of Lawyers, until around 2010 when my boss was running for his third term in the state legislature and I wanted to focus on more local issues around medical cannabis implementation.
I spent some time as an acting-executive director for the Cannabis Defense Coalition, advising businesses on the medical cannabis laws, and became a partner in a medical authorization clinic and wellness center. I was also volunteering with Seattle Hempfest — where I started in 2004 and have continued to commit my free time to this day, now as part of the board of directors.
After the legalization initiative passed in Washington state in 2012, I began using my law degree to represent businesses during the licensing process, working with Wykowski Law and Gleam Law. But billing clients was not for me, and circumstances in my life made me want to run a cannabis business.
It was 2016, and by then I had moved to Oregon where they had also passed a legalization initiative. With a partner who had previously had a successful medical cannabis business, spent a year forming the business and pitching it, only to fail to secure enough funding to continue in such an expensive endeavor.
I became disheartened in the whole process and the future for all small businesses trying to make it in the industry. I knew the only way to truly have a successful industry that worked for all stakeholders and citizens was to legalize at the federal level, and the main organization focused on that effort was NCIA.
On a whim, I looked at the NCIA website to see if they were hiring. Lo and behold, they had a business development position open and wanted someone located in the Pacific Northwest and connected in the industry. Business development wasn’t quite in my skill set, but we made it work and I have had a hand in multiple areas at the organization since I started January 2017. My biggest effort so far has been the creation and development of NCIA’s Allied Associations Program; it has been very satisfying bringing together cannabis trade associations from around the country.
I am now Deputy Director of Public Policy and feel so fortunate to work with the brilliant Andrew Kline and all the work that is coming out of the Policy Council. I continue to work with the Allied Associations Program, alongside Amy Rose, to keep my finger on the pulse of state policy, and I’m coordinating NCIA’s member committees and their content, along with Morgan Fox.
Moving forward, I’m feeling like probably most people, ranging from the anxiety of existential uncertainty to the optimism of knowing cannabis is considered essential in society and the endless possibilities as we all navigate this new normal. The creativity and tenacity of all my amazing colleagues at NCIA and our members leave me full of hope.
What is Happening in D.C.? Come see for yourself!
by Madeline Grant, NCIA Government Relations Manager
There has been a lot of cannabis action in the 116th Congress and that is not an accident — it’s time for cannabis policy reform!
We’ve seen historical hearings, votes, and mark-ups take place with the help of our champions on Capitol Hill. We need to continue to support these efforts and support Members of Congress who fight for cannabis reform. So… how can you help to impact reform in Washington, D.C.?
Mark your calendars for NCIA’s 10th Annual Cannabis Industry Lobby Days on May 19-21! There is no better way to network with other NCIA members, meet with congressional staff and members, attend events, and most importantly tell YOUR stories on Capitol Hill.
What you don’t want to miss out on…
NCIA’s 2nd Annual VIP DAY(taking place during the day of May 19) forNCIA PAC Leadership CircleMembers! To participate you must be a member of the PAC Leadership Circle by contributing to the NCIA-PAC. The NCIA-PAC maintains no overhead costs so that 100% of donations are used to support industry-friendly candidates and build the political influence of our emerging business sector. For more information on joining and participating in this exclusive day please email Vanessa at Vanessa@thecannabisindustry.org.
Below are a few examples of what VIP Day consists of…
-Luncheon with Members of Congress -Meetings with Members of Congress -Meetings with committees of jurisdiction -Networking with NCIA’s politically active members -Capitol Hill briefings with Hill staffers and professionals
Pictured: Congresswoman Katie Porter (CA-45), NCIA’s Director of Government Relations, Michael Correia, and Maddy Grant, NCIA’s Government Relations Manager. Last year, Rep. Porter attended our VIP Luncheon.
Committee Blog: Ending The Ban On Interstate Commerce (Part 1)
Oversupply and shortages, high prices and lack of choice for patients and consumers, illicit markets, tainted products, and the inability to access banking and capital all plague the burgeoning cannabis industry. While cannabis advocates and industry leaders are working on each of these problems, there is one solution that would ease the burden on all of them. Allowing for interstate trade between states with legal cannabis markets would improve each of these issues while supporting the individual solutions to each that the industry has been working on. This is the first post in a series that explores the benefits and barriers to setting up a legal framework for interstate trade, even before wholesale legalization at the federal level.
Since the beginning of legal, adult-use cannabis, when Colorado and Washington passed the first ballot measure allowing for adult-use, the industry was guided by the Cole Memo, which laid out the parameters for the federal government staying out of the states’ cannabis experiments. Among other things, the Cole memo stated that the DEA could crackdown on cannabis moving from states with well-regulated systems to states that do not allow cannabis. This statement has been interpreted conservatively to mean that no cannabis should cross state lines for any reason, ever, based on the fact that at the federal level, cannabis is still a Schedule I drug under the Controlled Substances Act.
Today, there are 10 states which have legalized adult-use, another 19 which allow for medical use, and six more which allow the use of CBD products only. Many of these states share borders, and producer states could serve several nearby markets without ever entering a state that does not allow cannabis in any form. Furthermore, the Cole Memo, which was rescinded by Jeff Sessions in 2018, has not been replaced by any guidance whatsoever. This means that each U.S. Attorney’s office is free to set their own enforcement priorities around state-legal cannabis activities, and there is no official overriding policy at the DOJ on interstate trade between states with medical or adult use. Corresponding guidance from FinCEN, however, remains in effect and similarly discourages the transfer of cannabis between states.
Cannabis markets vary widely from state to state with regard to the underlying market dynamics and challenges that they face. Some states produce too much while other states experience shortages. Meanwhile, new states pass legislation or have voter initiatives that allow medical or adult-use every year without any infrastructure in place to supply that state’s demand. In each new legal market, the vast majority of demand had long been met through illicit market supply, and generally from outside of the state’s boundaries.
The artificial boundaries around cannabis markets have far-reaching impacts for local economies, patient access, illicit market activity, and social equity. Later posts in this series will take a deep dive into each of these issues, and in this post, we will look at how this has impacted states, the industry, and consumers so far.
Lessons Learned:
Washington State chose to take the strictest possible reading of the Cole Memo, and insist that not only must cannabis not cross state lines but also sources of funding must come from within the state. Combined with their high capitalization requirement for licenses, the result was a disaster from an equity standpoint: only wealthy and well-connected individuals in the state (which are overwhelmingly white males) were able to even attempt a license. This decision was based substantially on the fact that interstate trade was not allowed.
In Oregon, which has an ideal growing climate and a long tradition of exporting cannabis (albeit in the illicit market), the artificial boundaries created by the ban on interstate trade lead to a massive oversupply for its small population, which crippled the industry and tanked many small businesses. Despite the fact that Oregonians consume more cannabis per capita than any state, their climate and culture have led to growing massive quantities of world-class cannabis that cannot reach patients and consumers, even in neighboring states that might have under-supply issues. The result is that hundreds of small, mom-and-pop shops and family farms have gone out of business, eradicating millions of dollars of local capital, and accelerating mass consolidation of the industry into the hands of a few foreign corporations. Meanwhile, in medical markets like Illinois and Michigan, patients have had sporadic access to quality cannabis-based medicines.
When Nevada originally launched, due to the influence of local liquor distributors, it was almost impossible to get products to market, and the state’s dispensaries sold out on the first day of sales. After ironing out some of the kinks, sales are going strong, but the practice of growing thirsty plants indoors in the desert is of dubious value when the same plant can be grown with a fraction of the inputs in northern California and southern Oregon.
California’s legal system is a perfect example of how over-regulation fuels illicit market activity. Because of the structure of their regulatory framework and high taxes, the state is served by only 800 licensed dispensaries, whose prices are double and triple those found on the illicit market for similar products. This has led to the emergence of thousands of “pop-up” or unlicensed dispensaries, selling untested products tax-free in a thriving illicit market. The booming illicit market in California has also led to massive wholesale markets of hardware, branded packaging, and flavoring and cutting agents (all technically legal) to supply the illegal operators with everything they need to look legitimate. This is a major contributing factor to the wide-spread vaping related illness cases popping up all over the country, as many illicit market operators purchase their supplies in downtown Los Angeles.
The ban on interstate trade promises to continue to create new and novel problems as well. If New York, the 4th most populous state in the union, legalized adult-use (which seems likely in the near future), and interstate trade were still banned, it would require a massive investment, on the order of billions of dollars, to create enough indoor and greenhouse grow facilities to supply the demand created by its 19 million inhabitants. The recent legalization of hemp under the last Farm Bill has created a number of legal dilemmas as well, as some individual states that do not recognize any difference between hemp and cannabis flower have seized products and arrested individuals taking hemp legally grown in one state to a market where it is legal to sell.
Some suggest that these issues will be sorted in local markets, and in each state individually this approach might seem to make sense. When you add these problems together, though, a much more elegant, efficient, and obvious solution emerges: let states that have always exported cannabis send it to states that have always imported it. A set of different and seemingly unconnected problems become each other’s solutions.
Historically, people across the country have consumed cannabis, and the vast majority of it was grown in a few locations that are particularly well-suited to the plant. It is highly likely that a fully-matured nationwide legal market (one which must account for not only interstate, but also international competition) will ultimately be best served by the same general market dynamics. The only question is: how long will we allow the artificial market boundaries around each state to decimate local capital, curb access for patients and consumers, encourage investments that are attractive short-term but disastrous long-term, and prop up the illegal markets that pose a public health risk?
Interstate trade between states that allow some form of legal cannabis would provide much-needed relief on a number of fronts for cannabis businesses, and could be structured in such a way to support social equity efforts. With a little guidance on enforcement and thoughtful programs and agreements between states, there is a path to legal interstate commerce even before cannabis is removed from the Controlled Substances Act. The state of Oregon has already passed legislation allowing for the export and import of cannabis products provided that the Federal Government allows it. This could be either through legislation such as the proposed Blumenauer/Widen State Cannabis Commerce Act, or though DOJ enforcement guidance (whether from the Attorney General or the relevant local U.S. Attorney’s). There are multiple paths that can lead to the end of banned interstate trade, and it seems increasingly inevitable that we will see legal cannabis trade across state borders in the near future. For most operators in the cannabis industry, and for all patients and consumers, this will be a good thing, and can’t come soon enough.
Gabriel Cross is a Founder and CEO at Odyssey Distribution, LLC, a distributor for locally-owned craft cannabis producers and processors in Oregon. Gabe worked in the sustainable building industry for a decade before starting Odyssey and brings his experience with sustainability and systems thinking to his work in the cannabis industry. Odyssey manages logistics, sales and marketing for boutique producers so they can focus on creating great craft cannabis products for the Oregon market.
The Burning Question – When Will SAFE Banking Get A Vote?
by Michelle Rutter, NCIA Government Relations Manager
With Congress returning from their annual August recess, all I seem to be asked is “when will we get a vote on SAFE Banking?” And while it’s unclear whether that vote will be in September or beyond, it’s important to remember that this is the farthest a standalone, pro-cannabis bill has ever gotten in the U.S. House of Representatives. Since the House Financial Services Committee hearing on this topic earlier this year, it seems like the momentum to pass this legislation has only increased. Let’s take a look back and what’s happened and what’s to come:
First, in February, the Subcommittee on Consumer Protection and Financial Institutions held its first-ever hearing on marijuana and financial services, entitled: Challenges and Solutions: Access to Banking Services for Cannabis-Related Businesses. Up for discussion at the time was a draft of the Secure and Fair Enforcement (SAFE) Banking Act. Later, in March, HR 1595/S. 1200: the Secure and Fair Enforcement (SAFE) Banking Act was introduced in the House of Representatives by Reps. Ed Perlmutter (D-CO) and Denny Heck (D-WA) and in the Senate by Sens. Jeff Merkley (D-OR) and Cory Gardner (R-CO). In a stunning, historic surprise, the legislation was introduced with a whopping 106 original cosponsors in the House. By July, that number rose to include more than 205 cosponsors.
As a refresher, the SAFE Banking Act would prevent federal banking regulators from punishing banks for working with cannabis-related businesses that are obeying state laws or halting their services, taking action on loans made to those businesses, or limiting a depository institution’s access to the Deposit Insurance Fund. The bill would also protect ancillary businesses that work with the cannabis industry from being charged with money laundering and other financial crimes, and requires the Financial Institution Examination Council to develop guidance to help credit unions and banks understand how to lawfully serve cannabis businesses.
After the bill was introduced, the House Financial Services decided to take the next step in the legislative process and schedule a mark-up of the bill. A markup is the process by which a congressional committee debates, amends, and rewrites proposed legislation.
The bill is read for amendment, one section at a time, with committee members offering their amendments to each section after it is read but before the next section is read. Committees do not change the texts of the bills they mark up. Instead, committees vote on amendments that their members want to recommend that the House adopts when the House considers the bill on the floor. The bill passed out of committee with flying colors — by a margin of 45-15.
In May, we got another signal that the SAFE Banking Act is being taken very seriously on Capitol Hill- the Congressional Budget Office (CBO) released a cost estimate, or “score” of the legislation. The report stated, “CBO estimates H.R. 1595 would decrease net direct spending by $4 million over the 2019-2029 period.”
Then, in July, we couldn’t believe our eyes and ears when it was announced that longtime cannabis opponent and Chairman of the Senate Banking Committee, Sen. Mike Crapo (R-ID) planned to hold a hearing entitled, “Challenges for Cannabis and Banking: Outside Perspectives,” to discuss the current banking challenges faced by the legal cannabis industry and to assess the unintended consequences and public safety risks associated with commercial businesses operating in an all-cash environment.
Chairman Crapo dedicated much of his time to understand how the SAFE Banking Act would regulate financial institutions and ensure the banking industry could and operate in compliance with a business selling a Schedule I product. Towards the end of the hearing, Crapo said, “I think the case has been made pretty strongly here today about the need to get the banking industry issues relating to cannabis resolved.”
This week, Congress returns to Washington, and we at NCIA are preparing for a House Floor vote on SAFE in the next one to two months. In the meantime, we need you to call your Representative and Senators and ask them to ask leadership to hold a vote on HR 1595/S. 1200, the SAFE Banking Act! You can findtips and talking points here.
Cannabis Victories: Small Business Committee Hearing and Appropriations Progress
by Michelle Rutter, NCIA’s Government Relations Manager
Last week was arguably the biggest week for cannabis reform in Washington, D.C. — ever.
As we noted last week, the House Committee on Small Business held a hearing entitled “Unlocked Potential? Small Businesses in the Cannabis Industry.” The hearing allowed members of the Committee to learn about the opportunities the legitimate cannabis industry presents for small businesses in states with legal cannabis, as well as entrepreneurs from traditionally underserved communities. The hearing also discussed the challenges also faced by “ancillary” or “indirect” cannabis businesses.
The Chairwoman of NCIA’s Banking Access Committee, Dana Chaves, testified, as well as representatives from the Minority Cannabis Business Association (MCBA), the Veterans Cannabis Coalition (VCC), and The Heritage Foundation. In the testimony NCIA submitted for the record, we wrote, “[SBA] programs were specifically designed to stimulate economic activity and create jobs through small-business enterprises. Offering funding to the emerging regulated cannabis industry, which is mostly comprised of small businesses, would perfectly align with SBA’s primary objective to maintain and strengthen the Nation’s economy.” You can read NCIA’s full testimony here.
In addition to the hearing, there was a resounding, victorious Floor vote that put every single member of the House of Representatives on the record when it comes to cannabis.
Known as the Blumenauer-McClintock-Norton amendment, this provision that was added to the Commerce, Justice, Science, and Related Agencies (CJS) Appropriations Act of 2020, passed by a vote of 267-165 and would prevent any federal funds from being used to target state-legal cannabis programs. The vote was decisive: it had support from all but eight Democrats, and picked up 41 ‘Ayes’ from Republicans.
It is unclear whether or not the amendment will be included in Senate appropriations language, however, it will be an uphill battle. But, having the House of Representatives clearly say that adult-use cannabis programs, businesses, and consumers shouldn’t fear the Department of Justice kicking their doors down cannot be underestimated.
So, thank you to the nearly 2,000 NCIA members who made this victory possible by investing in our unparalleled lobbying team in Washington, D.C. Legislation like this doesn’t pass by itself — it’s a direct result of the forward-thinking members who support our work in D.C. We look forward to celebrating many more victories with you!
Five Reasons Why NCIA’s Industry Socials Were A Huge Success
At the end of 2018, NCIA’s events team looked ahead at how to make our line-up of 2019 events even better and respond to an increasingly popular demand for more networking opportunities. As a team we dreamed up how to make a B2B networking series that was not only delivered maximum ROI, but was super fun and fit the cannabis industry culture.
Ultimately, we devised what might be the magic elixir of networking events. Artsy venues, delicious drinks and food, live local music, old-school Nintendo, giant Jenga and Connect Four. We even threw in a raffle-wheel contest to win limited edition NCIA merchandise. The result? NCIA’s January Industry Socials were a total hit. Although there are many, here are the top five reasons why NCIA’s Industry Socials were a huge success.
1. Impressive Attendees
Throughout January, Industry Socials kicked off with a West Coast Tour in Seattle, WA, Portland, OR, Las Vegas, NV, Salt Lake City, UT and Phoenix, AZ. We were excited (and a bit nervous) about the turn-out for the Utah Industry Social in Salt Lake City, since the exciting passage of Utah’s Proposition 2 happened only a few months before the event. As NCIA’s Aaron Smith remarked “we’re excited to bring our world-class industry events to new markets like Utah, and later this year in Missouri, North Dakota, and Texas!”
Overall, January’s Industry Socials turned out about 500 impressive cannabis industry professionals and advocates, representing 250 current NCIA member companies! Even better? We saw more than 75 attendees in the brand new Utah market!
2. Incredible Feedback
The post-event survey results are in and they are stellar! The majority of survey respondents reported that they would highly recommend the event series to a friend or colleague.
More than 50% of survey respondents said they made between 11-20 new contacts at the event and that at least three of these contacts were potential sales deals.
When asked what the biggest return on investment of the event was attendees stated:
“Getting to know our local business community.”
“The low key but targeted exposure in our local market.”
“Continued relationship building and network expansion.”
“We gained a lot of insight into the industry and where we fit as a company… the insights we gained were invaluable.”
“Foot in the door to get involved in rule making and learning about the application process in Utah.”
Kyle Rooney from Have A Heart, Sustaining Members with adult-use dispensaries in four states, says that “attending NCIA’s new Industry Socials is a chance to network in a more personal and low-key environment. National conferences are great, but these events provide a platform to talk to people in the regions that you want to connect with.”
RizePoint, who became members of NCIA just a week before the event in Salt Lake City, attended with several team members. Ed McGarr, RizePoint’s Vice President of Sales and Marketing says, “We began working with cannabis companies last year to advise on food safety, quality control and management for adult-use and medical cannabis edible products. NCIA’s Industry Socials provide a forum for us to connect with the industry and learn from them, as well as gain new business contacts. The event was priceless relative to networking and establishing ourselves further in the cannabis industry. It was refreshing that NCIA helped to establish the networking opportunities in a new, emerging market like Utah.”
3. Innovative Networking and Entertainment
Introducing a retro arcade station including Super Mario and PAC-MAN at our Industry Socials was the brilliant idea of our events team. Now that we know how fun it was, we’re seriously considering having it as an NCIA event standard.
But seriously, we now know that a cash bar is not the only way of lubricating conversation and community building. Adding fun games like Nintendo, giant Jenga and Connect Four is another way cannabis industry professionals can “connect” in an authentic, fun, and meaningful way. If more networking happened while playing a competitive game of PAC-MAN, the business world would be a much better place.
Additionally, at every event we had talented local DJ sets and interactive activities like a raffle-wheel and Polls Everywhere with cannabis industry trivia. As a value-added complimentary activity at our Nevada Industry Social, attendees had the opportunity to participate in two private tours of the world’s only immersive cannabis museum, Cannabition!
4. Our Sponsors and Partners
From helping us spread the word, to investing in NCIA’s Industry Socials, none of these amazing events could have happened without the help of our sponsors and partners.
Lastly, a huge thank you to our promotional partners: Growers Network, Cannabis Collaborative Conference, Utah Patients Coalition, Epilepsy Association of Utah, Marijuana Policy Project and TRUCE Utah.
5. Setting the Stage for 2019 Events
To kick off 2019 with a successful inaugural event series sets the stage for an incredible year of NCIA events. We are looking forward to hosting the next tour of Industry Socials in new cities and markets again in April and August.
But, you don’t have to wait until April to attend more NCIA events. NCIA’s March Cannabis Caucus series is kicking off soon, followed by the most impactful cannabis industry advocacy event of the year – NCIA’s 9th Annual Cannabis Industry Lobby Days.
Lastly, thank you to our nearly 2,000 member-businesses and to all event attendees for supporting NCIA’s mission. NCIA’s event revenues support the work we are doing to lobby at the federal level on your behalf on Capitol Hill and to build public support for the cannabis industry.
If you were at the January Industry Socials, be sure to check out our Facebook album and tag yourself!
NCIA at the Washington Cannabis Summit
by Rachel Kurtz, Outreach Manager
NCIA had the pleasure of attending and presenting at the recent 5th Annual Washington State Cannabis Summit, presented by The Cannabis Alliance, Washington state’s leading trade association for the cannabis industry and a member of NCIA’s Allied Associations Program. This conference is always extremely well done, with high caliber speakers on informative panels covering topics such as cannabis economy and markets, agronomy, and therapeutic values. Plenty of time left for Q&A allowed further engagement with the audience, sparking deeper conversations throughout the day.
NCIA’s Government Relations manager Michelle Rutter spoke on a policy panel about what’s happening around cannabis at the federal level in the other Washington, D.C. The panel was a holistic view of policy from around the country, including panelists Casey Houlihan, Executive Director of the Oregon Retailers of Cannabis Association; Cat Packer, the first Executive Director of the Department of Cannabis Regulation for the City of Los Angeles; and Rick Garza, Director of the Washington State Liquor and Cannabis Board (WSLCB).
The attendees were very interested in the social equity work happening around the country, and we learned that the WSLCB is making efforts in that area. It was also heartening to see Rick Garza taking notes when Cat Packer spoke about ways that California is trying to help the industry reach its customers by allowing consumption events without compromising safety or the integrity of the traceability program.
The highlight of the event came early in the day when Governor Jay Inslee, who had just three days prior announced his candidacy for President, told the room he planned to pardon thousands of people convicted of small cannabis possession charges. This would be done by creating an expedited process where people could apply for and receive a pardon in a simple fashion without needing a lawyer. It is expected to affect around 3500 people.
Wrapping Up 2018 Cannabis Caucus Events, Introducing New 2019 Events!
October marked the last NCIA events of the year with Cannabis Caucus events in eight regions nationwide and an outstanding 2nd Annual California Cannabis Business Conference in Anaheim, California. As this year’s events comes to a close, we have so much to reflect on and exciting new events to announce!
During this quarter’s Cannabis Caucus events, more than 400 NCIA members, representing 250 member companies, totaling in more than 750 attendees turned out for our eight events nationwide. This means that although these events are growing increasingly popular, they are still small enough to make meaningful connections with other industry leaders in your region. Instead of just making small talk with someone in passing, you’ll get to to have real conversations with some of the most influential leaders in the industry. Year after year, we hear about people striking business partnerships, friendships and impactful connections at these events because they offer the time, space and opportunity to do so.
In the industry’s largest markets, Northern California, Southern California, and Colorado, more than 100 industry professionals turned out at each event. But, perhaps most impressive was the 75 plus attendance in the Midwest, maybe a harbinger of the positive momentum garnered by statewide reform initiatives in this year’s midterm elections!
Cannabis Caucus Highlights
A the Northeast event, attendees heard the latest news surrounding medical cannabis in Maine from State Sen. Eric Brakey (R-District 20), as well as Maine’s adult-use cannabis laws from David Boyer, Maine Political Director at Marijuana Policy Project.
The event in Northern California featured special guest speaker Heidi Mattos, a payroll tax specialist from the State of California Employment & Development Department, who shared critical insights into state payroll tax regulations. In Southern California, we heard a special presentation on “Understanding California Agricultural Labor Laws As It Relates to Cannabis Cultivators” from guest speaker Eduardo Blanco, Special legal Advisor from the CA Agricultural Labor Relations Board.
The Southwest event featured Ryan Black, Campaign Co-Chair for Anita Malik, Candidate for Arizona’s Congressional District 6, discussing federal cannabis reform. Lastly, in the Pacific Northwest, Lara Kaminsky, Executive Director of The Cannabis Alliance (an NCIA Allied Association), spoke about the latest developments in Washington state’s cannabis industry, including the current status of the edibles product ban.
As the largest national trade association in the U.S. and the only organization representing more than 1,700 cannabis-related businesses at the national level, we have pretty deep connections. We know that 70 percent of the individuals who attend our regional events have executive level decision-making authority and 30 percent have heavy decision-making influence. All of this is to say that the caliber of the meaningful connections you will make have the potential to benefit your business in very real ways and quickly.
We also know that these boutique events are frequently attended by industry pioneers and dedicated policy reform advocates, the movers and shakers of the industry, who have helped support the movement for decades. Repeatedly, we hear from event attendees that these events are their favorite because of the quality of the event, the attendees and the sense of community and camaraderie they foster.
What’s Next? NCIA’s New 2019 Regional Event Series Announced
NCIA’s Industry Socialsare about cultivating regional communities of industry professionals, so that they can connect and learn from each other. Cultivating community is the most effective way to strengthen our industry and your business. Touring five cities in the West Coast, East Coast and Heartland regions, NCIA’s Industry Socials are the premier opportunity for cannabis professionals to harness NCIA’s extensive national network by creating meaningful connections with each other and with NCIA staff in a relaxed cocktail setting. Join us to expand your network and cultivate our community! Tickets to Industry Socials are complimentary to NCIA members and only $25 to non-members. Registration opens for the West Coast Tour on November 27!
NCIA’s Harvest Celebrations will be hosted in five cities in October to honor the cannabis harvesting season and celebrate the continued growth of our industry! Proceeds from NCIA’s inaugural Harvest Celebration events will foster support for NCIA’s federal lobbying work on behalf of businesses serving the industry and the industry at-large.
In light of these new 2019 NCIA events, we also have exciting new sponsorship opportunities to offer! Download the 2019 Event Sponsorship Deck or contact us for more information. Consider this your opportunity to get your brand in front of thousands of new businesses in diverse regions nationwide.
VIDEO: Member Spotlight on Solstice
In this video newsletter, we share the story of Solstice, a commercial cannabis producer founded in 2011 and based in the state of Washington. Vice president and co-founder Alex Cooley has infused his business model and practices with values that elevate the conversation around environmental sustainability and corporate responsibility in the cannabis industry.
Want to learn more about best practices and innovation for your cannabis business?
Register early for the best deals to attend NCIA’s Seed To Sale Show in Denver, January 31 – February 1, 2017. Sponsorship opportunities are also available!
Announcing NCIA’s January – June 2016 Events Calendar
Do you have questions regarding any upcoming events in your area or others across the country? Reach out to events@thecannabisindustry.org any time with your questions, comments, or concerns.
Interested in sponsoring one or a series of events in a particular region throughout the year in order to gain valuable exposure for your company to our nationwide network of established business owners? Please contact Brian Gilbert at brian@thecannabisindustry.org for more information on series rates and associated discounts for packages.
Interested in speaking at the upcoming Cannabis Business Summit? Please contact brooke@thecannabisindustry.org for more information on remaining opportunities.
Member Spotlight: Cannabis Basics
To kick off 2016, we speak with Ah Warner of Cannabis Basics, whose company saw a landmark year in cannabis policies in her state of Washington. She also recently won ‘Best Topical Brand’ at the 2015 Dope Industry Awards in Washington. Many in the industry and movement look up to her involvement in both her community and her direct activism, setting a tone for others looking to create a successful and responsible business in the cannabis industry.
Cannabis Industry Sector:
Cannabis-Infused Products
NCIA Member Since:
February 2013
How do you uniquely serve the cannabis industry?
We are dedicated to true whole genus cannabis topical therapy.
Cannabis Creations, now Cannabis Basics, was founded in 1995. Back in those days, there were many hemp body care manufacturers working with hempseed oil because of its amazing nutritive value for skin care. Today there are a host of cannabis topical producers that focus on cannabinoids from the plant and also CBD-derivatives from hemp that speak to our CB2 receptors. Cannabis Basics is this rare and beautiful place where the essential fatty acids and anti-inflammatory properties of hempseed oil and the multiple cannabinoids and terpenoids from cannabis are blended together with an arsenal of other botanical constituents to provide natural localized therapy for symptoms brought on by a myriad of conditions.
Why should customers seeking cannabis-infused topical products use Cannabis Basics?
We never use animal products, man-made fragrance oils, or chemical preservatives. We buy locally and organically whenever possible. Supporting Cannabis Basics is also activism because it enables us to continue to work for the betterment of our industry and community as a whole.
On August 25th, 2015, the USPTO awarded Cannabis Basics the first federal registration to a brand/logo displaying both the leaf and the word “cannabis” representing an actual product that contains cannabis, not a service or institution. Cannabis Basics has two distinct lines, one that contains cannabis (industrial hempseed oil) that can be sold anywhere in the world, and the other that contains cannabis (I.H. and multiple cannabinoids including THC) sold only in the state of Washington.
It is important to note that the USPTO did not award federal registration based on my cannabinoid line of products. Federal protection was awarded for my cannabis industrial hemp products however, and due to same branding, will by default provide protection to the entire Cannabis Basics family of products.
What started out as stand-alone sister bills with bipartisan support actually passed on June 30th as Section 7 of HB 2136, an I-502 tax fixer bill, and was signed into law by Governor Enslee. This law was enacted on July 1st, 2015, and is the first of its kind in the country. The CHABA law defines Cannabis Health and Beauty Aids for the first time in our legal lexicon as “cannabis products for topical use only, non-intoxicating and contains less than .3% THC.” It defines these products as not marijuana and allows for them to be sold to any mainstream retailer in the state of Washington, i.e., any health food stores, salons, or spas. The much larger significance of this new law is that it is the first removal of anything cannabis from the Washington State Controlled Substances Act.
I would be remiss if I did not take this platform to thank all the legislators who played a part in moving CHABA through Olympia, especially Washington State’s Cannabis Champion Senator Jeanne Kohl-Welles and my co-author/policy advisor Kari Boiter. The state of Washington and anyone who uses or produces CHABA are forever in your debt.
Why did you join NCIA?
Our goal at Cannabis Basics is to make Cannabis Health and Beauty Aids accessible to all health-conscious consumers everywhere in the U.S. and to be able to export to any country that is interested in importing these types of products. Being a member of NCIA has given me access to the movers, shakers, and policy-makers so that I may work efficiently at this ultimate goal.
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, 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.
Member Spotlight: Triple C Cannabis Club
Returning from a very busy summer season, NCIA continues the tradition of featuring one of our members in a monthly member spotlight. For October, we chat with Brian Caldwell of Triple C Cannabis Club, based in Tacoma, Washington. Triple C is proud of their home state of Washington for being one of the first in the nation to recognize and respect the right of every adult to decide what is best for his or her health and happiness. As one of the first and most successful medicinal dispensaries in the state, Triple C continues to lead the way in the transition to adult-use by elevating the retail experience with award-winning selection, service and staff.
Cannabis Industry Sector:
Medical Cannabis Providers
NCIA Member Since:
2014
How do you uniquely serve the cannabis community?
Triple C Cannabis Club is completely dedicated to procuring safe, tested, and properly labeled medical-grade cannabis products for our patients. We take meeting the needs of our patients very seriously and refuse to compromise our standards. We are committed to only providing the very best to our patients. Additionally, we feel we must help be the voice for the patients we serve that otherwise could or would get lost in a bureaucratic system. Change, especially the legalizing of cannabis that has occurred in Washington State, has been quite intimidating. We are here to help and support our patients through this process while ensuring our state’s regulators have trusted professionals from our industry to work with.
Why should customers looking for medical cannabis go to Triple C Cannabis Club?
Patients who want to #ExperienceChronicWellness ® will find a wide selections of oils, edibles, salves, topicals and more at Triple C Cannabis Club. We pride ourselves on consistent medicinal product availability that has been rigorously tested and is produced by the state’s elite manufacturers. Triple C Cannabis Club staff is award-winning and very knowledgeable on a wide array of products and medicines. They ensure product safety and patient confidentiality and consistently perform to the highest standards of care. As the first union shop in Washington, I am proud to work with UFCW to advance the safety and wellbeing of all who come through our doors, regardless if they are a patient or staff.
Our business has evolved rapidly along with the changing legal landscape. As a result, people come to us for very different reasons. Many want to relieve pain and promote healing naturally. Others seek to ease stress, enhance experiences, or nurture creativity. The many wonders and benefits of cannabis are why it has been so beloved for most of recorded history.
Brian Caldwell, Triple C Cannabis Club
Can you give us some insight into the cannabis community in Washington, the challenges, upsides, and where you’d like to see it go?
As we have seen in other states, and in Washington’s past, the road to regulation of cannabis is a difficult one, but one that is desperately needed. The state has to balance federal jurisdictional issues, patients have fears due to years of persecution, and business owners are trying hard to be law-abiding, good corporate citizens. When Washington started the medical cannabis journey in 1998, we all shared the vision of a legal and safe environment for patients. However, with the veto offered by then-Governor Christine Gregoire, that was not the case. The laws have been interpreted in many different ways, hence the success of the black and grey markets. So here we are some twenty years later, trying to fix the regulations to create that safe marketplace we all had envisioned. I believe that if we work with state legislators on practical regulations and our congressional delegation on fixing taxation and banking, it will go a long way in bringing our industry into mainstream acceptance and small business success.
Why did you join NCIA?
I joined NCIA for numerous reasons, but first and foremost is their clear mission to advance the cannabis industry with a thoughtful and targeted approach. The leadership they are providing to our congressional delegation on matters such as banking and taxation is unmatched by any other groups. The cannabis industry needs a strong and professional voice to help solve these critical industry problems, which is exactly what NCIA has stepped up to do. The commitment that NCIA has to membership development, education, and networking is another reason why I chose to become a member. Triple C Cannabis Club supports the efforts of those that want to advance our industry in a positive and educated manner, and NCIA is a good reflection of those principles.
NCIA’s Member Spotlight for the month of May takes us up to Arlington, Washington, to speak with Fitz Couhig, CEO of Pioneer Nuggets, an indoor craft agriculture company that supports the adult retail consumer industry for cannabis in Washington State.
Cannabis Industry Sector:
Cannabis Cultivation
NCIA Member Since:
2014
How do you uniquely serve the cannabis industry?
We focus on the core competency of making a quality flower product for consumers. Focusing on a core competency and providing effective just-in-time inventory services are setting us apart. Our assembly-line work flow and perpetual production that supports our made-to-order inventory management system are unique as well.
Why should customers buy cannabis grown by Pioneer Nuggets?
Black Haze cannabis strain, grown by Pioneer Production and Processing, LLC
We serve consumers over the age of 21 that enjoy cannabis and visit an adult-use (+21) retail shop in the State of Washington. Adults should go with Pioneer Nuggets because they enjoy cannabis that is smooth and high in flavor profiles.
Can you give us some insight into the cannabis community in Washington, the challenges, upsides, and where you’d like to see it go?
The most unique challenge is being a wholesaler. No other taxed and traded system involves wholesaling and distribution, and we are required to do it without the help of any other organization. Serving retailers is what we do. We would like to see the industry move in the direction that allows retailers, processors, and producers to all thrive. We need tax reform and we need to be treated like normal businesses.
The Pioneer Nuggets team, based in Arlington, WA
How many employees do you have and how many customers do you serve?
We have 18 full-time employees and serve around 25 licensed retailers. It takes a lot of great people to continually make sensational products and provide excellent customer service.
Why did you join NCIA?
We joined NCIA for two reasons. One, the organization structure is well designed to develop a quality trade association for the cannabis industry we are a part of. Two, the team of people responsible for the NCIA and supporting its efforts and mission. We believe NCIA will succeed in creating the standards and forums industry professionals need, that our employees need, and that our organization needs.
Guest Post: Banking Access – The Struggle Is Real for CannaBusiness Owners
By Luke Ramirez, Walking Raven LLC
Bank accounts — normally, the most basic thing a business does when starting out is start a business checking account. Those of us in the cannabis industry, however, are very well aware of the struggle to get even basic banking while openly violating federal law. It has been an issue for cannabis companies for years; NCIA’s own Taylor West recently spoke about the banking challenges cannabis companies face in a Huffington Post article, stating, “It’s the biggest problem we have.”
Luke Ramirez, Walking Raven LLC Photo courtesy of Kim Sidwell
As an owner and operator of a retail marijuana center and cultivation warehouses, with a company, Walking Raven, which has been kicked out of more than seven banks in the last five years (including the loss of personal bank accounts), I can personally attest that this could be the most difficult part of running a cannabis company. Although there are pricey alternatives out there, the security risk of transferring and storing large amounts of cash invites crime from the criminal underworld, severely increasing your safety liability as a company. An additional burden comes with the very high cost of time it takes to manage all this cash and pay basic bills, such as power, water, and other utilities. In my company alone, we estimated a cost of over $13,000 in 2014 simply from the time it took to handle our cash.
NCIA has been an outstanding resource for myself and many other of my colleagues in tackling the banking issue. NCIA’s supportive network of other cannabis professionals has given me the advice and contacts I need to operate my business successfully, including banking. If you’re having issues with banking, I suggest that you reach out to your colleagues in NCIA for reputable ideas, or join NCIA if not already a member.
Thankfully, for the industry as a whole, the issue has been covered by the media and brought to light to the general public in much more depth in the last year since adult-use cannabis sales began on 1/1/2014; even Playboy Magazine covered the issue of banking in the cannabis industry last summer. In Colorado, Governor John Hickenlooper, who opposed the legalization of cannabis, asked the federal government to help Colorado with cannabis banking issues. In Washington State, the only other state to allow adult-use cannabis sales in 2014, the Liquor Control Board has also taken steps to help cannabis companies obtain banking, by making publicly available the sales activity of licensed growers, sellers, and processors.
Because of this exposure and the efforts of Colorado’s and Washington’s public officials, there have been major recent steps toward “above-table” banking for cannabis companies. On November 19th of last year, regulators in Colorado granted a charter to a credit union that hopes to work with cannabis companies; the union is now waiting upon an issuance of a master account number from the Federal Reserve to allow it to enter the country’s electronic banking system. In addition, there have recently been creditable solutions offered by one of NCIA’s own board members. While it is yet to be seen if these solutions are long-term, we are closer than we ever have been before to normalized banking.
A budtender at the Walking Raven shop
While we continue to wait for a mainstream solution for every cannabis company, dispensary owners and cultivators should:
Leverage their networks and gain contacts that can provide banking contacts. I recommend joining NCIA and taking advantage of the group’s reputable network if you have not done so already.
Avoid any kind of activity that could be construed as money laundering and therefore put your business in serious jeopardy. This kind of activity includes lying about the nature of your business to a bank, or using your personal accounts for a large amount of business activity.
Look into security companies that offer to handle your cash and eliminate the safety liability of using large amounts of cash. They are expensive, but may be well worth the cost for your business.
Once you obtain banking, avoid “obvious” cannabis transactions. Use cash to pay any vendor that has an obviously cannabis-related name that you must write a check out to.
When using cash, make sure to save all invoices, and get signed receipts from vendors and signed pay-stubs from employees; this will leave a much-needed paper trail in the event of an audit or investigation.
Luke Ramirez is owner and managing director of Walking Raven, LLC, a sustaining member of NCIA. Luke was also recently elected to NCIA’s Board of Directors. Luke has actively been in the cannabis industry since 2009. Since taking control of his company’s operations in 2011, he has changed the entire culture of the shop and successfully completed the process of converting all 3 licenses from medical to retail. Within his organization, he is responsible for all finance management, staffing, compliance reporting, marketing/inventory control, and public relations, among other things. Luke has been featured on many media outlets, such as CNBC, national CBS, and numerous local news stations. He is also actively involved in multiple cannabis trade organizations, lobbying efforts, and advocacy groups.
NCIA Member Profile: Green Chiefs Baked Botanicals
This month, NCIA spoke with Stesha Reis, director of operations for Green Chief and Baked Botanicals in Washington state. They were the first edibles on the recreational market in Washington and will soon be launching a line of topicals. She is also the president of the Washington Marijuana Association as well as being involved in many other groups.
Cannabis Industry Sector:
Infused Cannabis Products
NCIA Member Since:
2014
A selection of infused chocolates by Green Chiefs Baked Botanicals
How do you uniquely serve the cannabis industry?
Baked Botanicals uniquely serves the cannabis industry through the largest selection of tested cannabis edibles in the state of Washington. We strive to provide a safe, enjoyable, and consistent experience to everyone. Many of our employees have been in the cannabis industry in one way or another for more than 10 years. We honestly care about our products and are continuously striving to have the best – the best experience, the best tasting, the best ingredients. We have people who love what they do and it shows in our products.
Why should those seeking infused cannabis products look for Green Chiefs Baked Botanicals?
Those seeking cannabis-infused products should look for Baked Botanicals because we make everything by hand, from scratch, with quality ingredients. We offer edibles that you would find in a good bakery, or in your mom’s kitchen…only infused with high-grade cold-pressed CO2 Oil. We want the consumer to be able to look to us as the “Gold Standard” in cannabis edibles.
You’ve been working closely with various groups in Washington state on cannabis regulations. Tell us more about what you’ve been doing to “raise the bar” for the cannabis industry.
CO2 extraction machine
We as a company have striven to be an answer and sounding board for other new producers, processors, and retailers as they go through the processes to become cannabis entities. We want everyone to feel like we can get our questions answered, and we want to help get other people’s questions answered. The more knowledgeable that we are as a state and as a group of entrepreneurs, the more successful we will be and the better we will be able to educate the general public.
Why did you get involved in NCIA?
We got involved in NCIA to be a part of something bigger – something that would have a positive impact on the cannabis market in Washington. We are here to learn from the best and exchange ideas and information relevant to our market.
If you are a member of NCIA and would like to contribute to the NCIA blog, please contact development officer Bethany Moore by emailing bethany@thecannabisindustry.org.
GUEST POST: The Real Environmental Impact – Sustainable Practices For Cannabis Companies
One widely circulated quote equates the carbon footprint of producing a gram of hydroponically grown cannabis to that of “driving seventeen miles in a Honda Civic.” And while that beats seventeen miles in a Hummer, it’s a number we have the power to greatly reduce. Part of what excites me about this freshly-legal industry is that we have the opportunity to shape it in a way that big business has thus far failed to do by not putting a higher profit margin above the health of the planet.
In August I was asked to speak about this very topic in Las Vegas at the 2nd annual NCIA Southwest CannaBusiness Symposium. It gave me a chance to reflect on something I’m passionate about – the real environmental impact of what we do, what isn’t working, and how we can create positive change for this and future generations of growers and patients.
Get Under The Sun
It takes vast resources to power a warehouse grow that relies on High Intensity Discharge (HID) or High Pressure Sodium (HPS) lights. Automated light deprivation greenhouses can produce cannabis of equal or greater value as that produced indoors at half the cost and one quarter the environmental impact.
Cannabis used for extracts can all be grown outdoors. Provided you live in a climate that allows for outdoor cultivation, sun-grown cannabis is excellent starting material for extractions. The finished form will be far from the flower, so why not take advantage of one of our most powerful (and free!) resources?
Solstice growhouse
Keep It Lean Indoors
I know that not every method of cultivation can rely exclusively on solar power. However, in indoor grows, we can focus on efficiency.
For most indoor grows, Heating, Ventilation, and Air Conditioning (HVAC) systems are a huge resource suck. I’ve discovered that the best method is to utilize a centralized Variable Air Volume (VAV) system.
Make sure the envelope is sealed. Keep your buildings well insulated to prevent energy leaks. Without a higher energy code and tighter insulation, many industrial-scale grows hemorrhage energy and resources.
Lay Down the Law
Frankly, some of the cities and states currently passing laws to regulate cannabis cultivation have the least enviable power infrastructures. Las Vegas, which relies heavily on coal and natural gas, is ahead of the curve in terms of legislation, whereas clean n’ green hydro-electrically-powered Washington State has yet to create stringent and sustainable regulations. Legislators have been more concerned with issues of security and diversion than environmental impact. The “pot is dangerous” paradigm needs to shift to “unregulated grow practices are dangerous for the planet.”
Nice Package…
We can effectively undo all the good of a smart grow with wasteful packaging.
Glass jars with cork & wood tops
Think cradle-to-grave for your packaging: Where did it come from? What is it made of? Where will it go after it has been used? That plastic container might be a good fix in a pinch, but think about the impact it has as you scale.
We’ve got to reduce plastics and push glass, wood, or paper wherever possible. Almost every gram of cannabis that goes out into the world from a processing facility is wrapped in plastic – and we all know that it can’t be properly disposed of or recycled. However, the plastic used for business-to-business bulk orders could be saved and reused.
At Solstice we’ve been designing glass containers with cork and wood tops for our flower. They can be collected, reused, or returned for a deposit. Our pre-rolls are made from 60% post-consumer recycled paper and printed with vegetable ink. Every little bit counts.
Have Multiple Bottom Lines
The “Triple P bottom line: People, Planet, Profits” is the newest, sexiest take on commerce with a conscience. The Triple P works primarily because it’s a flexible paradigm; it gives business owners a framework in which they can question and evaluate the human and environmental cost of every move they make.
Across industries, innovative leaders are finding more generous, humane, and ultimately more sustainable ways to do big business. Some of these are easy and inexpensive: utilizing proper waste disposal, bike-to-work incentive programs (a Solstice favorite), Plant-A-Tree days, or making sure your pesticide program is safe for employees and the planet.
Sometimes however, there is an unavoidable immediate cost to doing what’s right. Google uses a fancy fuel cell with 2-3 bloom boxes for their building infrastructure. They’re getting loads of good PR for this – in part because very few people can afford to use them.
But it is my belief that the more you grow, the more capital you’re bringing in, the more you have to give to impeccable resource management.
Everyone knows that cannabis makes money; we’re looking at a multi-billion dollar industry over the next 5 years. Hobby systems and garage standards are not scalable for the cannabis boom. Whatever the laws might ‘allow’ us to do, we have to stay ahead of the curve and firmly within our own conscience.
Alex Cooley is the owner of Solstice, a member of NCIA since April 2013. Solstice founded their Seattle-based flagship in 2011 as the first-ever permitted cannabis production facility in Washington State. Solstice has taken an environmentally conscious approach to high quality cannabis production and has cultivated over 350 different types of cannabis, creating one of the most robust genetic libraries anywhere in the world.
Washington State Opens Legal Adult-Use Sales
Washington became the second state to begin legal adult-use sales of cannabis when five state-licensed retail stores opened their doors on July 8. Although opening day was somewhat subdued by the small number of licensed stores and concerns about temporarily tight inventories, the mood was nonetheless celebratory and sales were brisk. According to Washington’s Liquor Control Board, which oversees I-502 cannabis regulation, approximately $1.27 million in adult-use cannabis purchases took place in the first ten days of legal sales.
The overall impact of Washington’s adult-use legalization program will take some time to assess, as the state is rolling out retail licenses slowly. (As of July 21, only 24 of the eventual 334 available retail licenses had been issued.) Cultivation and infused-product licenses have also been slow in coming, which has made it impossible for the state’s cannabis producers to fully supply I-502 demand in the opening weeks. Retail operations have experienced shortages and temporary outages.
Questions also still remain about the future of Washington’s medical marijuana industry, which has operated legally (though without a state-level regulatory program) for more than a decade.
Still, despite the questions and challenges Washington’s market will face in the coming weeks and months, the opening of legal adult-use sales marks another hugely historic step toward the end of marijuana prohibition and the growth of a legitimate, successful, and beneficial cannabis industry.
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By Sadaf Naushad, NCIA Intern 
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