by Madeline Grant, NCIA’s Government Relations Manager
The National Cannabis Industry Association (NCIA) will be holding its 7th Annual Cannabis Business Summit & Expo next month in San Francisco, California. From December 15-17, don’t miss the opportunity to network, engage with hundreds of exhibitors from the cannabis ecosystem, and immerse yourself in educational content. Also, you can discover the industry’s most exciting brands and next year’s best-sellers at the all-new BLOOM: A Brand Experience, debuting at #CannaBizSummit. For the first time at the nation’s most influential cannabis industry event, attendees will have the opportunity to see, touch, and smell products from dozens of brands specializing in flower, pre-roll, vapor, edibles, and more.
Are you a member of NCIA? Then use your benefits!
Depending on the tier of membership, don’t miss the opportunity to use your discounts and complimentary tickets for #CannaBizSummit.
Seeding members receive $100 discount on admission to NCIA trade shows
Blooming members receive five complimentary tickets to NCIA trade shows
Evergreen members receive ten complimentary tickets to NCIA trade shows
What educational content will be available?
Rest assured that there will be no shortage of educational content from speakers around the country. As the cannabis industry is ever-evolving, it is important to keep engaged and educated. This year, your ticket gives you access to all panel discussions and keynote sessions. You’ll get to join discussions on a range of subjects spanning cultivation, business services, licensing, compliance, retail, distribution, advocacy, and much more. Here are a few of the panel topics to check out:
Pathways to Federal Legalization: An Update from D.C.
Harmonizing Federal and State Cannabis Policy
Transparency, Values, Authenticity: The Principles for Successful Leadership
Wellness in Action: Elite Athletes as Cannabis Advocates
Founded in 2010, NCIA is the oldest, largest, and most effective trade association representing legal cannabis businesses. Through education and networking, you’ll discover new insights that help and grow your business all while meeting hundreds of industry professionals from around the country. With representation of all cannabis sectors and all business sizes, there is opportunity for attendees to gain invaluable knowledge.
Are you an NCIA member or interested in getting your business more involved?
Along with our annual trade shows, NCIA offers a wide range of membership benefits to help businesses become stronger, smarter, and more prosperous by working together to defend and expand the responsible cannabis industry.
I encourage you to meet with one of the NCIA staff in San Francisco to discuss how to fully utilize your benefits as a member. Membership with NCIA offers opportunities in marketing, business resources, policy, advocacy, networking, and education. Additionally, your support as members continues to propel our mission to promote the growth of a responsible, sustainable, and inclusive cannabis industry and work for a favorable social, economic, and regulatory environment. Please email Madeline@thecannabisindustry.org to set up a time to chat.
Are you interested in getting more involved in policy and advocacy work?
NCIA’s priority is to defend and advance the interests of the responsible cannabis industry in our nation’s capital. Central to our mission is the belief that our members should be treated fairly under federal law and that the cannabis industry much like any other legitimate business sector in this country. NCIA launched the Evergreen Roundtable for leading businesses looking to make a meaningful investment in shaping policy for the cannabis industry. Evergreen Member companies receive exclusive access to private briefings from members of Congress, inside information from NCIA’s government relations team, and many more opportunities to participate in the national conversation around cannabis policy. If your company is interested in supporting at this level please fill out the form HERE to set up a meeting with our Government Relations team.
Let’s Recap…
If you are an NCIA member, make sure you utilize your membership benefits. Find a refresh of your benefits HERE.
If you are not yet a member of NCIA and are interested in learning more please send an email to madeline@thecannabisindustry.org.
Don’t miss out on the opportunity to immerse your business and employees at #CannaBizSummit.
There is a lot of work to be done to ensure a value-driven, responsible cannabis industry and NCIA appreciates your support.
Committee Blog: Five Best Practices to Future-Proof Your Cannabis Brand on Social Media
By Jake Setlak, Receptor Brands on behalf of NCIA’s Marketing & Advertising Committee
Social media platforms can be perilous for cannabis businesses. Every brand feels the need to have a presence on social media. Their typical approach is to accumulate followers by posting what you think those followers want to see. Then one day, without notice, those followers — and the platform algorithm’s understanding of why your brand was relevant to them — vanishes. Cannabis brands on social media are surrounded by so much gray area, it’s hard to know what makes your presence vulnerable to risks of suspension or worse. To help brands avoid those gray areas, here are five practices to help cannabis marketers future-proof their brands on social media.
1. Embrace standards.
Brands are held to higher standards on social media than users are. This is especially true for brands in regulated categories like cannabis. Why? Standards help protect against fraud and deception. These protections serve both consumer (users) and commercial (brands, businesses) interests across a wide variety of media channels. Think: truth in advertising and consumer protection laws. Get familiar with the federal, state, and municipal or regional laws that apply to all commercial interests where your cannabis brand operates (or find someone to do this on your behalf).
2. Think about your reputation.
How you behave on social media says a lot about your brand. There’s more than content to consider — bad behavior can permanently discolor your brand’s reputation. Why? Everyone can see what you’re doing. Openly engaging in deceptive practices shows consumers, partners, and regulators that your brand isn’t trustworthy. Those duplicate and back-up Instagram profiles? They signal to the rest of us that you know you’re taking risks. That could be all it takes to inspire someone to flag or report you. Social platforms notoriously rely on users to police the community — if users like you don’t report violations, the platforms tend not to know about them.
3. Safeguard your brand’s presence.
This is worth repeating, regardless of being in cannabis or another category: avoid getting banned. Why? No back-up profile can magically restore lost followers and engagement. When social media platforms decide to allow cannabis brands to use paid advertising, you’ll be locked out. This is why it’s important to set clear goals and objectives for maintaining your brand’s social presence.
Establish a compliance strategy for your social media efforts with three must-haves:
Social Media Policy for Employees
Community Management Guidelines & Protocols
Legal Counsel (professional advice regarding cannabis category regulations, truth-in-advertising standards and consumer protection laws, and social media platform policies)
4. Know what you can say and how you can say it.
Be careful not to misinterpret another brand’s social media activity as setting a precedent for yours. Why? Seeing someone else break the rules is not license or permission for us to break those same rules. Plus, let’s face it — legitimate cannabis brands are already working uphill against prohibition-era prejudices. Know a bad example when you see one, and more importantly know what you can say and how you can say it on social media platforms.
What you can say:
DO stick to “social” objectives. Take the higher ground. Speak from your brand values, not necessarily what the “insta” know-it-alls might insist. Be a valuable presence in the community, not just more clutter in their feed.
DON’T antagonize the community. Remember, you’re a commercial interest and held to higher standards than users. It looks bad when brands argue with competitors, followers, or other brands. The Internet is full of trolls who prey and depend on your impulsive responses — even if it isn’t your aim to deceive or misinform, you may already be a target because of the stigma that still comes with cannabis.
How you can say it:
DO communicate generally. Make observations. Be insightful. Grow your audience. Engage the community.
DON’T advertise or promote. Explicit calls-to-action (CTAs) like “get”, “find”, “try”, or “buy” aren’t allowed for cannabis, especially on platforms where you can’t guarantee your audience is of a compliant age. This is the same reason you want to avoid depicting or promoting over-consumption.
5. Set the bar higher.
Aim to be the most upstanding citizen in the cannabis community. Why? No one knows when federal legalization will happen or how quickly a platform’s policies will change. This means no one can say it’s too soon to start preparing for such an eventuality!
There are four ways you can start raising the bar right now:
Make content that makes a difference.
Content creation for startups and small businesses doesn’t have to be overwhelming. Start with measurable objectives that justify your content creation process and budget. Scale your efforts toward more effectiveness, not merely more frequent posts. Set aside time to regularly evaluate and optimize your efforts. This is where well-placed focus will go a long way for you. It might take more effort to get beyond the “recommended” or popular approaches, but you will discover that you move faster and spend less when you go with what you know: the meaning and value your brand offers the cannabis community.
Apply paid advertising standard to organic content.
These apply to paid advertising but may in some cases also apply to organic content posted by commercial interests (brands). Platforms change frequently and without warning, so it’s wise to stay current on the policies and guidelines of the platforms you use.
Here are helpful resources for the five social platforms where many brands — regardless of category — typically start on social media. Enforcement may still be a mystery in many cases, but these policies help us understand when a post or profile might venture into gray areas and risk a suspension or worse.
Jake Setlak is a founding member and head of Creative Strategy / Brand Experience at Receptor Brands, an agency custom-made for cannabis that transforms relationships between cannabis brands and their customers. Prior to his work in cannabis, Jake spent 20 years guiding the digital transformation of some of the world’s biggest brands and their advertising agencies. He’s worked in social media channels since before they were called “social media” and invented the Facebook Comment Ad format (now known as the boosted or promoted post). Jake is a member of NCIA’s Education Committee but produced this content while a member of the Marketing & Advertising Committee and serving on its Next-Generation Advertising subcommittee.
Equity Member Spotlight: Next Level Edibles – Anthony Jenkins Jr.
This month, NCIA’s editorial department continues the monthly Member Spotlight series by highlighting our Social Equity Scholarship Recipients as part of our Diversity, Equity, and Inclusion Program. Participants are gaining first-hand access to regulators in key markets to get insight on the industry, tips for raising capital, and advice on how to access and utilize data to ensure success in their businesses, along with all the other benefits available to NCIA members.
Tell me a bit about your background and why you launched your company?
I was born in Hayward, California and spent most of my childhood in Mesa, Arizona, and in the Bay Area, in Northern California. After high school, I spent some time at The Farm (Stanford) and graduated from The House (Morehouse College).
Next Level was started almost 10 years ago. During a particularly trying part of my life, a medical professional recommended antidepressants and anti-anxiety medicine for symptoms I was experiencing. Taking these drugs made me feel slightly better, but came with a host of other problems; twitching, irritability, weight gain. I needed another solution.
In college, I experimented with cannabis and as an adult, I found that it alleviated my symptoms without the side effects. Unfortunately, the halflife for cannabis is only 90 minutes which wasn’t nearly long enough to cover my full workday. I learned about edibles and how they can last for 4 to 6 hours and I was really attracted to their lack of smell. As a business professional, a deal could be broken if I smelled like cannabis. Edibles did not have a negative connotation and were perfectly discreet for my work environment.
Unfortunately, edibles only came in two different types at this time period: tasty, but completely lacking on potency, or absolutely disgusting and potent. No one should ever need a chaser for their edibles. The industry was ripe for a company with absolutely delicious products that could also provide a strong dosage.
What unique value does your company offer to the cannabis industry?
Next Level empowers people to infuse any food or beverage and accurately dose it for higher tolerances. With our products, the home cook can imbue any dish her heart desires and the morning warrior can add a kick to his favorite hot beverages.
Cannabis companies have a unique responsibility to shape this growing industry to be socially responsible and advocate for it to be treated fairly. How does your company help work toward that goal for the greater good of the cannabis industry?
When we started this venture, there was not much information out there about equity cannabis companies. Realizing there are probably many other minority entrepreneurs trying to start a cannabis business, I started a Facebook group called CES (Cannabis Equity Success) to help disseminate information about equity programs across America and to raise the profile of equity companies to support. In addition, I’ve been assisting new entrepreneurs to get connected with resources to see their vision come to light. As a minority-owned business, it is very important that we celebrate and support other businesses owned and operated by women, veterans, those with disabilities, and people of color.
It is Next Level’s vision to support these minority-owned businesses. Partnering with women-owned businesses, like Changemaker Creative, not only makes good business sense as they are local leaders in the industry, but also allows us to gain key insights into our target market. The owner and head creator, Lilli Keinaenen, is able to provide details and cater designs that appeal directly to her demographic. Other awesome women-led companies that are our strategic partners include our copacker, the Galley, and Supernova women.
In our distribution chain, we work with BIPOC owned companies like Local Equity Distribution and Breeze which provide jobs and revenue to the people and communities negatively impacted by cannabis arrests.
What kind of challenges do you face in the industry and what solutions would you like to see?
The biggest challenge we face in the industry is getting dispensaries to buy small company products. We are a small “mom and pop” owned by family members from Oakland, CA. It’s more challenging to get dispensary buyers to sit down with us because they prefer to save their time and shelf space for the larger established brands. One possible solution for this problem is to have each dispensary dedicate a certain portion of its stock to legacy brands/small mom and pops/equity companies.
The other challenge we face is getting access to capital. This is a bootstrapped venture, and issues in cannabis take a lot more time and money to solve than other industries. Unfortunately, there are not a lot of angel investors or investment companies putting money in cannabis and even less in minority entrepreneurs. The solution for this is to make the investment world much more equitable and inclusive.
Why did you join NCIA through the DEI Scholarship Proogram? What’s the best part about being a member?
I joined NCIA through the DEI Scholarship Program for an opportunity to learn best practices for my industry and to network with the finest minds in cannabis.
NCIA Accepting Applications For 2022-24 Board of Directors Term
NCIA is accepting applications for eligible candidates to apply for its board of directors now through Thursday, September 30, 2021.
The National Cannabis Industry Association is a nonprofit organization run for and by its membership, so we hope you’ll consider this opportunity to apply for a seat on the NCIA Board.
Serving on NCIA’s Board of Directors is no small task. Board members are responsible for overseeing the strategic direction of the largest and most influential cannabis industry organization in the country. Board Members are also responsible for building membership, fundraising, and ensuring that NCIA continues to be the strongest force advocating for the fair and equal treatment of the industry on Capitol Hill.
Current NCIA members in good standing are eligible to apply for a seat on the board. NCIA members who are interested and qualified to serve on our board are encouraged to submit an application for review by our nominating committee before the September 30 deadline. Candidates may apply directly for a board position during the open application process. The application form asks for information about the candidate’s professional background, unique talents, skills, and viewpoints, and ability to contribute or raise financial resources for NCIA.
Who Qualifies To Run For A Board Position?
To be considered for a seat on the board, a candidate must be a fiduciary (e.g. owner, president, CEO) of a current dues-paying member business at any level of membership and must submit an application online by September 30.
What Are The Requirements For An NCIA Board Member?
Board members serve two-year terms and are responsible for overseeing the association’s overall strategy and budget, assist in the development of strategic relationships, and as ambassadors of NCIA, they represent nearly 2,000 member businesses. In general, the NCIA board meets in person twice and conducts 2-3 video conferences per year.
How Are The Board Positions Selected?
Once the application period closes, NCIA’s Nominations Committee will convene to carefully review and score all applications. The committee will ultimately select a slate of nominees to fill eight (8) available board seats that are best suited to bring additional talent, resources, and diversity to our growing organization, based on their qualifications. Our Nominating Committee will be comprised of the chairs of our 14 member committees as well as a select number of current board members whose terms are not expiring this year. Once the Nominating Committee selects the slate of eight, members will be notified later this year.
Committee Blog: ‘Corporate to Cannabis Crossover’ – An Interview with Portland’s Cannabis Czar, Dasheeda Dawson
by Elise Serbaroli of Strimo, interview conducted May 2021
Elise Serbaroli is a member of the NCIA’s State Regulations Committee, “Informing Local Governments” subcommittee, which aims to bridge knowledge gaps between operators and regulators in the cannabis industry. This is done through interviews with current cannabis regulators in various U.S. states, sharing best practices and lessons learned.
Dasheeda Dawson is a cannabis regulator in Oregon and co-founder of the Cannabis Regulators of Color Coalition (CRCC). As cannabis czar for the City of Portland, she is the highest government official overseeing and advising on cannabis regulation for the municipality. Ms. Dawson brings an incredible breadth of experience to the cannabis space. A self-proclaimed “corporate to cannabis crossover”, she is perfectly positioned to navigate and lead the complexity that is the legal cannabis industry. Before becoming a best-selling author (“How to Succeed in the Cannabis Industry”), she held leadership roles at Victoria’s Secret and Target. Her career is built off of a solid educational foundation, including a Princeton degree (Molecular Biology & African-American studies) and an MBA from Rutgers.
Can you tell us how you got into the cannabis industry?
For the five years prior to formally getting into the industry, I was what you would call a “closeted cannabis consumer/patient.” I have early signs of MS and my mom was actually the one that insisted I give it a try. At the time, I was working at Target in Minnesota. Cannabis was my saving grace for maintaining productivity and overall capabilities. My mom passed away unexpectedly in 2016 and it jolted me out of the standard corporate trajectory I had been on. I ended up moving to Arizona and became a medical cannabis patient there, jumping into the advocacy side of the industry. Arizona legalized adult-use this past November!
From Target to Cannabis Czar! Did you always plan on becoming a regulator?
Certainly not! Straight out of the gate, I got a lot of work as a consultant in the industry, using everything that I had done in my corporate career, including business strategy and supply chain management. I had owned everything for my categories at Target and when you’re the business owner, you lead and oversee the entire cross-functional team. I applied that to the cannabis space as quickly as I could, working for a lot of clients and gaining an entrepreneurial education from working with large cannabis enterprise clients, small operators, multi-state operators, Native American tribes, even government. I gained the truest sense of how NOT to do it. In a corporate role, you usually write a report about what you have learned, insights, etc., and then you move forward. My workbook, now in its 3rd edition, was really built off of those lessons learned.
When COVID hit, my book tour was abruptly stopped overnight! At the same time, I was selected to become the Cannabis Program Supervisor for the City of Portland. I was only the third Black woman at the time to be selected to oversee a cannabis regulatory office. I believe that now there are more, but women and people of color are scarce in these positions. Most of the regulators are white men, many of whom come from another regulatory agency, like liquor or law enforcement. In order to assure that cannabis regulation is equity-centered, you need people at the table that will center equity. This last year has been amazing. I have a lot of runway and support to be exactly who I am, which is the Weed Head (TM). I refuse to be anything else and I’m in a bureau that allows me to do that.
What exactly is a cannabis czar?
On the state level, the Oregon Liquor Control Commission is currently passing legislation to become the Oregon Liquor AND CANNABIS Commission (OLCC), primarily because cannabis is providing substantial revenue for the state. Most of those people are liquor regulators, and they have organized a sub-group, focused only on cannabis. It started off with four people and now there are 50!
As Portland’s cannabis czar, I am a municipality leader, similar to Cat Packer in Los Angeles, and operate independently of the OLCC. Portland represents approximately 40% of the total cannabis revenue for the state and I oversee the entire cannabis program, including regulatory, licensing, compliance, community impact, and equity initiatives for Portland’s medical and adult-use programs.
In the city of Portland, cannabis regulation and oversight was placed in the Office of Community and Civic Life, as opposed to in the Office of Finance and Revenue or the Office of Business Development Services, which is where they license other businesses. This placement is partly due to the idea at the time that the cannabis industry was going to be disruptive to the community. Many individuals were worried about safety for communities. Our office has been trying to decrease the stigma and canna-phobia around the plant, offering education and equity initiatives. We were the first city to have community reinvestment grants tied to our cannabis tax revenue. These grants are administered through the SEED (Social Equity and Educational Development) Initiatives and grant fund.
CRCC and CannRa are two independent organizations, which happened to both launch at the same time. This caused some confusion in the industry. They are not mutually exclusive memberships! In fact, two of our founding members are also founding members of CannRa. The regulators roundtable was the predecessor of CannRa and that association aggregates insights and learnings state by state. The Oregon Liquor Control Commission (state-level) is a member of CannRa.
CRCC centers equity and support of legalization, while also aggregating insights and learnings state by state. If you are a regulator of color, at the state or local level, it makes sense to join the Cannabis Regulators of Color Coalition. We know that legalization is a requirement to start to undo the harm done through the war on drugs.
Centering equity involves re-thinking how we regulate this industry. One challenge is getting people to realize that this is a regulatory agency, like any other government regulatory agency. The Department of Motor Vehicles (DMV), a regulatory agency, gives out licenses and adjusts to assure that no group is precluded from access (adjusting for wheelchairs, visual and hearing impairments, etc.). Yet, in cannabis, we are regulating the industry without dealing with the inequities in the industry. Some of these inequities are directly linked to the historical prohibition of cannabis and the war on drugs, which we define as the racially-biased enforcement of cannabis prohibition.
Supporting equity also includes gender inequities, economic inequities, and disability inequities, to mention a few, that will positively impact everyone in the industry, including and especially patients themselves. Exclusionary practices would not be tolerated if it was an agency like the DMV. With cannabis, we are over-regulating the industry and excluding many people from participating, which is to the detriment of the market and the community. CRCC is focused on equity-centered regulation for the cannabis industry.
What is one thing that you would like to see in the legislation for cannabis businesses at the federal level?
Well, there’s a misconception about the size of companies in this industry. As an industry, we have to be careful about supporting legislation that only benefits large corporations. More than 75% of cannabis businesses have annual revenue of $2 million or less. Compared to small businesses in other industries, for example, in agriculture ($6 million or less) and retail ($14 million or less), cannabis businesses are very small, so everyone needs to push for legislation to benefit these small businesses in whatever regulatory framework is set up on a federal level. This is one step in leading the industry towards a more equitable path.
One aspect of inequity is how cannabis businesses of different sizes are treated. On average, very small cannabis companies have an after-tax rate of 70%, so when you’re going to the table for the regulatory framework, push back on the tax structure, push back on mechanisms that are inherently disadvantageous to small businesses. Surprisingly or not, most Black, Indigenous, or Latinx businesses are also small businesses, so you are positively impacting racial equity.
If you, as a cannabis business, think you’re a big fish, trust me, Big Tobacco, Big Alcohol, Big Pharma, Big CPG (“consumer packaged goods”) – Target has $70 billion in annual revenue – are coming, so a big fish in this cannabis pond is setting itself up to be eaten by much bigger fish and bigger sharks. If we leave back doors open for the larger cannabis businesses, we’re leaving that same back door open for a Walmart or an Amazon. Large corporations are already investigating and supporting cannabis. They plan years in advance for large takeovers and once it starts, it’s a stampede of well-financed, organized strategic efforts.
At a state level, the industry and those who want to support the industry, need to be careful to not overtax the small businesses and to vote to provide a framework of support mechanisms for small cannabis businesses.
What are some examples of frameworks that support or negatively impact small cannabis businesses?
Some of the early legalization efforts required vertical integration. Because of the way the state and local jurisdictions are regulating and taxing, forcing vertical integration is not a small-business-friendly approach to licensing. This was the case in some earlier states, but we’re also seeing newer states like Georgia taking this approach.
By breaking up the licensing into different parts of the supply chain (like California), you open up possibilities for smaller businesses to operate. If the state is giving out micro-business licenses, there should also be a track to grow into a larger size so that there is no ceiling on those businesses’ growth prospects. For example, in New Jersey, advocates fought to amend provisions that failed to create a way to sell out of a micro-license for a growth event.
Everybody has a different opinion depending on which economist you talk to about how you tax up and down the supply chain. I’d like to see states have tiered tax by production weight. Once you start doing it by the percentage of THC, you’re negatively impacting businesses and patients. It’s meant to be a deterrent and is an example of the government intending to overregulate in an area that it doesn’t fully understand. But usually, those penalties wind up impacting the smaller craft businesses. Too many people are assuming that consumption in the adult-use market is just for recreational purposes, but there are plenty of small niche operators aimed at a specific medical community and they are producing small batches, for example, with high THC, but their clientele may be negatively impacted, simply as a function of the way the tax law was written.
Thanks, Dasheeda, for taking the time to speak with us! If readers want to get involved in changing legislation and connecting with regulators, where should they start?
It’s certainly a long and hard process when dealing with big issues and change. For operators, NCIA is a good place to start. There is also the M4MM and the MCBA. Folks should really try to connect with the local- and state-relevant organizations. Building and operating in coalitions can be very powerful. On a national level, be sure that any group you are part of is actually going to D.C. and is having conversations with the legislators, because at the end of the day, whether it’s cannabis or any other business, you need to be involved with influencing the policies that impact your industry. Everything starts with the law and civic engagement.
Elise Serbaroli leads Global Business Development at Strimo, where she provides cannabis businesses with software solutions around inventory management, cost accounting, QA, and compliance. She’s back in the USA after over a decade of experience in Spain, Germany, Switzerland and Ecuador.
Understanding the importance of efficiency, scalability, and profitability, Elise created solutions to financial and legal processes for the R&D team at CPW, a joint venture of two of the world’s largest food companies, Nestlé & General Mills. As a systems coordinator, she gained a deep appreciation for food safety, GMPs and regulatory compliance. Her supply chain software experience builds off of her Business Development role at Tradeshift, the world’s largest network for digital B2B payments.
New Risk Management and Insurance Committee Manual: Introduction to Cannabis Insurance
The cannabis industry is one of the fastest-growing industries in the U.S., maturing at more than 25% annually. As the cannabis industry continues to emerge and flourish from state to state, there remains uncertainty as to the immediate future of federal legislation to remove cannabis from the schedule of controlled substances.
The cannabis industry will continue to experience the convergence between state and federal government regulations until a uniform regulatory and compliance framework can be established. Fundamental services such as banking, financing, and insurance, along with IRS 280E tax regulations, will continue to burden state-regulated cannabis businesses. And, with the industry still in its relative infancy, emerging and shifting regulatory backdrops create risks to these businesses.
Cannabis businesses can manage these risks in a variety of ways. Perhaps the foremost among them are the procurement of appropriate insurance coverage. While just a few years ago, insurance coverage options for cannabis operators were incredibly limited, today there are dozens of insurance carriers serving the industry.
Cannabis operators have to be proactive in developing a risk management program that conforms to local and state compliance and security requirements. As the industry continues to evolve, we will need to be more diligent in controlling and managing risk.
To assist with this process, NCIA’s Risk Management & Insurance Committee (RMIC) is pleased to provide the first in a series of Insurance Manuals that will help guide you through the various coverages and definitions used in the cannabis insurance industry. This first edition of the RMIC Insurance Manual will outline the basic and entry level knowledge base for the cannabis insurance industry, and explore the various insurable risks attributed to the cannabis supply chain. Future additions will dive deeper into more specific insurance topics.
NCIA’s Risk Management & Insurance Committee is a multidisciplinary group of risk management professionals convened to draw on expertise and experiences of professionals dedicated to the cannabis community. Primary contributors for the first installment of the Insurance Manual include:
Committee Insights | 7.14.21 | How to Increase Product Safety When We Don’t Know What “Safe” Is
In this edition of our NCIA Committee Insights series originally aired on Wednesday, July 14, 2021 we were joined by members of our Cannabis Manufacturing Committee for a discussion about how terpene limits, both in edibles and inhalables, as well as vapor products can be manufactured so as to place them as low as reasonably possible on the risk continuum.
With years of research and study ahead of us, it wouldn’t be appropriate to call many manufactured cannabis products “safe.” But that doesn’t mean we need to stop selling products until all the data is in. We know enough now to make manufactured products safer than the alternatives, in other words, provide a harm reduction benefit.
Learning Objectives:
• Principles of harm reduction and risk continuum
• Latest thinking in terpene limits (edibles and inhalables)
• Latest thinking in vapor hardware configuration and testing
Speakers:
Lior Chatow, Research And Development Manager, Eybna
Ramon Alarcon, Founder + CEO, Wellness Insight Technologies, Inc.
Arnaud Dumas de Rauly, Co-Founder & CEO, Blinc Group
Mid-Year Update on 280E and its Impact on the Cannabis Retail Sector
by Beau R Whitney, NCIA’s Chief Economist
The first half of the year was a strong one for cannabis revenues. After a strong first quarter, with $5.9 billion in revenue, cannabis retailers are experiencing continued growth in Q2 with preliminary results coming in at $6.2 billion to $6.5 billion.
If this trend remains in the second half of the year, the cannabis retail sales are projected to be $24.5 to $25 billion for the year. This would reflect another cycle of 35% year-over-year growth.
Source: Whitney Economics, Leafly
Strong growth in the first half of the year, does not necessarily mean huge profits for the cannabis industry.
While the industry has seen strong growth over the past year, this does not necessarily mean that the industry as a whole is in good shape. Retailers are struggling to make profits due in a large part to federal taxation. IRC 280E does not allow entities conducting business in federally illicit trade, such as cannabis, to write off common and ordinary deductions from their federal taxes. As a result, cannabis operators pay significantly more taxes than other businesses. This has long been an issue with the cannabis industry and organizations such as NCIA has been working tirelessly to address this, but as long as it remains a federal policy it will be negatively impacting the industry.
Cannabis retailers are taking the brunt of federal tax policy.
With over $12 billion in first-half revenues, cannabis retailers will be on the hook for $1.2 billion in federal taxes for the first half of the year alone. This is $756 million more than what “normal” businesses would pay. Cannabis retailers are forecasted to pay over $1.5 billion more in taxes in 2021 and, when combined with the rest of the supply chain, will pay over $2.2 billion in additional taxes in 2021.
280e Example of Impact on Retail
Normal Business
280E Business
Comment
Retail mid-Year Revenue
$12,000,000,000
$12,000,000,000
Based on data from Whitney Economics
Cost of Goods Sold (COGS = 50%)
$6,000,000,000
$6,000,000,000
Ordinary and Necessary Expenses (30%)
$3,600,000,000
$3,600,000,000
Not allowed under 280e
Real Pre-Tax Profit w/o 280e
$2,400,000,000
$2,400,000,000
Taxable Profit
$2,400,000,000
$6,000,000,000
Big difference in taxable rates
Fed Tax @21% *
$504,000,000
$1,260,000,000
Retailers pay 150% more
Effective tax rate
21.0%
52.5%
Some effective tax rates approach 60%-70%
Net Annual Profit (Before State Tax and Debt Service)
$1,896,000,000
$1,140,000,000
A difference of $201,000 per year per retailer
Source: Whitney Economics *Assumes taxed at C-corporation rates
The effective tax rate is forecasted to increase with corporate tax increases.
The effective tax rate increases significantly for retailers and in many cases exceeds 60% to 70%. The level of additional taxes that cannabis operators pay, over the course of the next five years, will increase by an average of $630 million per year for the industry if the business tax rates increase from 21% to 28%. Depending on how corporate tax policy negotiations are settled, things may go from bad to worse for cannabis retailers.
Cannabis retailers are struggling to make ends meet.
Based on sales data from 2020, there were over 7,550 licensed cannabis retailers in the U.S. with each retailer generating an average of $2.4 million per year. This is right around the amount of revenue required to be a sustainable retail business. In 2021, there have been roughly 1,000 more retailers licensed and even with an increase in sales, retailers are only forecasted to average $2.7 million per year.in sales. In fact, in 13 states, retailers are not projected to average the $2.4 million per year to remain viable. While retailers in some states may be OK, other retailers are not able to make ends meet.
What do these numbers tell us?
IRC 280E will reduce cannabis retailers cash flow by $200,000 in 2021 and that $200,000 would go a long way in shoring up the finances and provide retailers with the breathing room they need to remain viable. 280E reform would allow retailers to pay for health care for more employees, hire more workers and expand their business. However, in the current environment, many cannabis operators will continue to struggle.
The key message here is that retailers are under duress due to 280E and policy reform in the area of federal taxes may make the difference between success and failure. The time for reform is now, before it is too late.
Learn more in a recent NCIA Fireside Chat webinar with an all-star panel of accounting experts and operators to dive deep into all things 280E.
NCIA Committees: Now Accepting Applications For 2021-2022 Term!
If you want to take your industry involvement to the next level, now is the time to get involved with one of NCIA’s 14 member-driven committees! NCIA is excited to announce that from now until August 15, we are accepting applications for the 2021-2022 term!
All NCIA annual members in good standing are invited to apply for an NCIA committee seat for the 2021-2022 committee term.
NCIA Committees enable current NCIA members to engage their vast and varied areas of expertise and passion to:
Effect change and influence public opinion and policy;
Enhance leadership skills;
Expand professional and personal network; and
Develop best practices and guidelines to shape the future of our industry.
NCIA Chief Executive Officer Aaron Smith checks in with what’s going on across the country with the National Cannabis Industry Association’s membership, board, allies, and staff. Join us every Friday here on Facebook for NCIA Today Live.
The Results Are In! | Best of 4/20 Marketing Campaigns
And the winners are…. In case you missed the live broadcast, we’re thrilled to announce the winners of our “Best of 4/20 Marketing Campaign” contest which were selected LIVE on Wednesday, May 5th during our #IndustryEssentials webinar!
We had so much fun showcasing each of these campaigns and narrowing it down to this group of top 8 was hard enough so we were glad that it was in the hands of our network to decide! Even so it was still a tight race as we had TWO neck and neck contests for both second and third place which resulted in a tie for each!
First Place
• Glass House Fest (Glass House Farms)
Second Place
• Waking + Baking: Cannabis Cooking Class & Dance Party (PLUS Products)
• 4/20 Social (Golden State Greens)
Third Place
• The Dabvent Calendar (Higher Celebrations / Birthjays)
• Legalize Loud (Rebelle)
Make sure to watch the full recording below in order to catch the complete recap of each campaign alongside the acceptance speech from our award winners themselves at the conclusion of the program! Want to know more about the finalists before watching the webinar? Read about on their campaigns here: https://bit.ly/3b3W6l6
Watch Now: https://youtu.be/ZyePG8W0FVc
Special thanks to the members of our panel Laura Wilkinson Sinton of Caligrown™ / AFC Products, Kary Radestock with Hippo Premium Packaging, Melinda Adamec from Cannabolish & OMI Industries as well as Eric Becker of MadisonJay Solutions.
We couldn’t have been more thrilled with how this contest turned out so thank you once again to all our members who participated by submitting a campaign for review as well as everyone who voted during the live broadcast! Stay tuned as we make plans to expand and grow this program moving into the future.
Announcing The Top 8 Finalists | Best of 4/20 Marketing Campaigns
In a year that has tested everyone’s resilience, our industry found new legitimacy as cannabis was deemed “essential” by lawmakers and regulators during the pandemic. As we slowly emerge from a shut down, the members of the Marketing & Advertising Committee (MAC) all agreed that 4/20 celebrations have brought a new meaning in 2021.
We celebrate that we have survived, and grieve for those who have lost so much.
We celebrate that cannabis legalization has moved forward – and rapidly – in several more states.
We celebrate that our industry continues to adapt so well, as it has throughout the last few decades.
Part of that celebration was reflected in clever and innovative 4/20 promotions. Of course, they were executed under CDC and county health guidelines because we know compliance, don’t we? Several NCIA member retailers, brands, and companies rose to the occasion, and we as marketers wanted to recognize that creativity and ingenuity. So, this year NCIA’s MAC committee asked for nominations for the best 420 Marketing Campaigns…and our members did not fail to deliver!
On Tuesday, May 5th, 2021 at 3:00PM EDT, NCIA’S MAC committee will recognize and showcase several of those marketing successes in our #IndustryEssentials Best Of 4/20 Marketing Campaigns celebration webinar. And, in a twist, we’re letting YOU decide who is the best of the best!
We’ve collected dozens of incredible entries and have boiled it down to EIGHT finalists to showcase during the broadcast. Congratulations to our finalists!
NCIA members will vote live to determine the top three. You won’t want to miss this interactive program featuring the best and brightest minds in the marketing space sharing each other’s most successful strategies surrounding the biggest retail day (and year) for our industry.
Here is a quick overview of the finalists (in no particular order):
Rebelle’s 4/20 Series began with a campaign to petition Governor Cuomo in New York to legalize cannabis. CGP ran a series of billboards around New York in high traffic areas and another at the entrance of the Lincoln tunnel. Finally, CGP conspicuously placed a billboard in Albany with the hopes of gaining attention from the Governor. This campaign was done with the help of Verdes, a design agency who has worked with the likes of Nike and Target. The messaging was loud and clear: “Legalize Loud, Legalize New York, Legalize Now”, “New York Wants All The Smoke”, “I (Pot Leaf) NY”. Their team banded together with the creation of personal Instagram accounts that coordinated messages daily, highlighting the inequities and harm done by the prior war on drugs. Billboards were highlighted on news channels in Brooklyn and Albany.
The loud billboards must have worked. Once legalization passed in New York, messaging shifted gears. The next round of ads debuted April 20th on the NASDAQ Billboard in Times Square. This time, it’s a message of celebration: “Happy 420”, “Let’s Get Loud”, “Let’s Rebelle”. After their 420 moment, Rebelle celebrated NY legalization 4/20 it’s first ever Rebelle 420 party at an outdoor restaurant patio location, Ten Hope in Brooklyn.
Golden State Greens was back at it again with it’s first in-person event since Covid labeled “4/20 Social.” Just like an ice cream social, attendees were able to mingle and munch safely distanced outside while listening to their favorite local and international artists. A list of top vendors displayed and gave away products to the lucky guests meeting friends in various hospitality areas. A series of social media posts leading up to the event encouraged followers to share with their friends by rewarding customers with in-store incentives. A group of media teams documented, captured, streamed and produced a recap of the event. A series of well known influencers hosted on stage and in front of the camera to guide guests/digital viewers through the experience. Massive discounts were given storewide and a percentage of all the proceeds for the day were donated to the charity our social following determined through their voice in voting.
In 2020, the year when 4/20 was an entire month, Higher Celebrations, an ancillary cannabis gifting company introduced the Dabvent Calendar, an epic month-long countdown to the most recognized cannabis holiday of the year. The Dabvent Calendar gathered 20 brands and 20 Instagram cannabis influencers to partake in a collaborative giveaway that honors every day in April as we do in December while counting down the days until Christmas. A nod to the classic Advent Calendar, the Dabvent Calendar contained daily elements of surprise and delight revealed by popular cannabis influencers such as @Chronicalewinsky (46K Followers) and @Bettykrockerbakes (21K Followers) leading up to the 20th. The physical calendars were gifted to influencers, including small products or swag items representing each major 420 Daily Giveaway that was announced by Higher Celebrations every day at 4:20 MST.
Edibles manufacturer WANA planned a series of activities that incorporate fun, pandemic-safe celebrations as well as opportunities to support the social justice causes brought to the forefront during last summer’s consciousness-raising demonstrations. #4ward20 reflects on the challenges of the past year while embracing the optimism on the horizon. In addition to consumer activities, #4ward20 honored dispensary partners by sharing special gifts with the essential workers who have kept the industry going throughout the pandemic.
Leading up to April 20, Wana Brands released a daily #4ward20 Challenge, providing ideas on ways individuals can celebrate each and every day. Ideas ranged from the silly (“get dressed up, even if it is just to feel good at home”) to the socially minded (“go on a distanced walk with a friend”) to the philanthropic (“donate money or time to a social equity organization”). Consumers were encouraged to share their activities by posting photos and videos to social media sites with the hashtag #4ward20 and tagging Wana Brands for a chance to win limited-edition #4ward20 swag.
This year on 4/20, the brand hosted Glass House Fest, a socially distanced hybrid digital-and-in-person music festival held at a secret location in LA featuring critically acclaimed rapper and producer, Flying Lotus along with supporting performers including Duckwrth and comedian Mike E Winfield.
The event included a fully immersive, virtual cannabis greenhouse experience, featuring interactive elements and a discount easter egg redeemable in the store’s merch shop. Glass House Fest was hosted live and in accordance with CDC guidelines, as well as virtually through the event livestream. Live music and cannabis experiences have historically gone hand in hand. Glass House Fest was developed to bring back a sense of normalcy to their customers’ everyday lives, and the hybrid event could serve as a blueprint for future industry activations.
Green Thumb Industries and its Rise dispensaries celebrated with their “Year of Essential” 4/20 campaign full of in-store activations, promotions, giveaways and paid media.
Each location was highly decorated with posters, 180 feet of pennant strings, flags, welcome mats, floor decals to help maintain social distancing and large wrapped bongs. There were price promotions in every market the entire month of April.
Traditionally, paper is the first wedding anniversary gift. To celebrate the first “year of essential”, Rise locations in Illinois, Maryland, Nevada and Florida gifted customers with rolling paper and copies of Lizzie Post’s “Higher Etiquette” and Lizzie hosted a GTI/Rise livestream event on April 19 at 4:20pm. Lizzie Post is the great-great granddaughter of etiquette legend Emily Post who 100 years ago wrote the book “Modern Manners”. The discussion centered on respect for cannabis culture to help usher in a new 4/20, and Lizzie shared tips on “canna-courtesy.” There were prizes and incentives for staff as well. The “Year of Essential” is a positive reminder that self-care and well-being are of utmost importance.
To kick off the week of 4/20, PLUS hosted “Waking + Baking: Cannabis Cooking Class and Dance Party,” a free virtual cannabis cooking class and dance party featuring a one-on-one interview with PLUS Chief Science Officer, Ari Mackler. The live cannabis brunch party was hosted and produced by Michelle Lhooq (@MichelleLhooq), a popular and respected LA-based cannabis journalist and author.
Viewers started off their lazy Sunday morning with a cooking class led by PLUS’ Research and Design team learning how to bake hash-infused scones and marmalades using PLUS’ Hash Gummies as the main ingredient. Registration for the event came with a discount code on PLUS gummies to entice viewers to purchase Hash Gummies for use in the cooking class.
Considering 4/20 landed on a Tuesday, PLUS chose a Sunday to offer those who may not be able to celebrate cannabis mid-week the chance to honor its history on the quietest day of the week. It brought together the community for some lighthearted fun after a year of pandemic-related stress.
As a fun way to celebrate 4/20 at home, Nugg Club engaged cannabis enthusiasts through a virtual and immersive experience that was accessed via nuggclub.com/420 (which started live on 4/15). Along with their 4/20 Home Edition Nugg Club box, members were invited to the site to enjoy curated selections of cannabis inspired by music, art, and deals from local restaurants to curb the munchies.
Nugg Club is a subscription cannabis club and helps anyone explore the world of cannabis at a discount. The company surprises consumers each month with a box of full-sized, premium cannabis products that are carefully curated and personalized for each customer and delivered at a wholesale price. The 4/20 box was a specialized tailored edition of that box.
All of the entries were terrific, and it was challenging to narrow the field to only eight (8). Your input and votes will determine the “People’s Choice” winners of the best of 4/20.
We are a resilient industry, and about to emerge into a new post-pandemic environment.
Please join us to celebrate epic marketing in a year of uncertainty and change. Register now and join us on May 5th!
We would also like to extend a big THANK YOU to everyone who submitted entries, and offer Honorable Mentions to all of these companies for their efforts!
Fireside Chats with NCIA’s Government Relations Team | 4.28.21 | Delta-8
The Fireside Chat series of NCIA’s #IndustryEssentials webinars are an exclusive monthly opportunity for NCIA members to hear from our government relations team and guests about the latest developments in federal policy LIVE.
Join Mike and Michelle and their guests this month as they take a deep dive into Delta-8! You’ve been seeing and hearing about it everywhere lately — but what actually is Delta-8, and what does it mean for state and federal policymakers?
The vast majority of Delta-8 products aren’t extracted from cannabis — instead, producers convert plant-derived CBD into Delta-8 THC using a chemical process called isomerization. The process combines CBD with a solvent, acid and heat to cause the reaction that turns CBD into THC.
Lately, many consumers have turned to purchasing Delta-8, which is becoming increasingly more available and typically less expensive than Delta-9 products. However, this has led too much disagreement within the hemp and cannabis communities and markets across the nation. Join Mike, Michelle, and guests as they sit down to talk about this uncharted territory, what they’re hearing on the ground, and how you can prepare your business for this new market. They’ll also discuss how this fits in with the 2018 Farm Bill, safety concerns, and, of course, the implications for both state and federal policy.
Panelists:
• Michael Correia, Director of Government Relations, NCIA
• Michelle Rutter Friberg, Deputy Director of Government Relations, NCIA
• Christopher J. Hudalla, Ph. D., President & Chief Scientific Officer, ProVerde Laboratories
• Greg Gerdeman, Ph.D., Co-founder, ECS Partners
• Paloma Lehfeldt, MD, MA, Director Of Medical Education at Vireo Health, Inc
• Tiffany Coleman, Founder, Cassin Consulting LLC
Member Blog: 5 Visual Merchandising Tips for Today’s Cannabis Dispensaries
Retailers from all walks of life are trying to figure out how to merchandise products that, pre-pandemic, would be offered using “try before you buy” tactics to entice people to make a purchase. Clothing stores had dressing rooms. Makeup stores had countertop sampling displays. Food purveyors offered edibles from self-service bins.
In some ways, the heavily regulated nature of the cannabis industry has put its retailers at an advantage when it comes to visual merchandising—they’ve had to be creative because, especially with adult-use customers, they’ve never been able to set up any type of “try before you buy” scenario. In many states, it’s even illegal for shoppers to bring their own items to the checkout counter. That makes selling an inherently experiential product a game of sight instead of taste, smell, or touch.
With cannabis becoming ever more mainstream, cannabis purveyors have taken an increasingly sophisticated approach to store design. Here are a few things to consider when implementing or refreshing a visual merchandising approach.
Consider the entire space
Floors, walls, ceilings, and countertops should all be utilized from a visual perspective, regardless of square footage. Wall-mounted shelving and wall-mounted pedestals make the most of vertical space. So do tall display cases. Waist-high displays that shoppers can walk around and look into from above work well in the center of a room.Locking display boxes and display cases can be used atop counters as space allows. Eye-catching and strategically placed signage, whether wall-mounted or suspended from the ceiling, can draw people to specific items or areas of the store and provide important educational information.
Consider the traffic flow
People tend to turn to their right when they enter a store, and cannabis retailers should be strategic about what they encounter there. It’s not the best place to put the budtender/checkout counter, because that only serves to bottleneck traffic and keep people from casting an eye about the rest of the shop. The goal in this space is to entice new customers to explore the store and give regular customers something new to think about. Signage that touts specials and intriguing products is a good choice, along with nearby displays of those items with adequate educational info for newcomers. Be sure there’s room for people to linger without impeding those who are coming in for a quick pick-up. That level of awareness is essential for every display in the store. No one wants to feel as if they’re infringing on another’s personal space, whether they’re there to browse or move right to the budtenders.
Make good lighting a priority
Since customers are often prohibited from picking up any cannabis-containing products in a dispensary on their own accord, the ability to examine them adequately without touching is paramount. Overhead lighting alone is not enough. For one, it will be blocked by the customer anytime they bend over to look inside a counter display. Many shelving units and product display cases come with, or can be outfitted with, lighting from above, beneath, or either side. Mirrors can also be incorporated to give people a 360-degree view. Consider what a person will want to know about a product and illuminate it accordingly—preferably inside a lockable display that doesn’t impede viewing. Displays made of optically clear acrylic are a good choice because they’re lightweight and shatter-resistant (especially as compared to glass).
Use acrylic blocks to add interest
Arranging products at different heights and angles on shelves or under counters serves many purposes. Acrylic blocks are the Swiss Army knife of displays because they come in a wide variety of dimensions and can be used to call attention to small items, create groups of complementary items and add a level of cachet to any product placed atop them. Since acrylic itself is optically clear, it can be tinted any color to complement a brand or particular look. And, acrylic is infinitely malleable, so custom pieces can be designed to accommodate any product or space.
Choose cannabis-specific displays
Cannabis shops can utilize a variety ofcannabis retail displays to showcase the products they sell or have specific displays designed to suit their needs.Cannabis display pods highlight, preserve and protect buds while allowing customers to fully experience terpene aromas without handling the product itself. As well, there are cannabis display pod spikes that enable a full view of your product, enabling customers to see the fine details of each bud. Bud jars can be customized with colored spike inserts and/or placed in display pod holders showcasing multiple jars. We’ve also created displays shaped to hold vape products.
Ray Ko has been creating effective visual merchandising strategies for retailers for more than twenty years. Today, he is the senior ecommerce manager for shopPOPdisplays, a leading designer and manufacturer of stock and custom retail displays that helps brick-and-mortar and ecommerce stores of all sizes, across all industries, showcase their products to drive sales.
Committee Blog: National and International Standards & Regulatory Bodies Relevant to the Cannabis Industry
by NCIA’s Facilities Design Committee
The cannabis industry benefits from the accumulated knowledge and established standards developed by many of the organizations listed here. Understanding the regulatory ecosystem is essential for cannabis operators as well as for those who strive to shape the regulatory future of the cannabis industry.
Listed below are some of the major regulatory bodies and standards agencies that have some relevance to the cannabis industry.
The American Herbal Products Association (AHPA) was founded in 1982 to promote the responsible commerce of herbal products to ensure that consumers continue to enjoy informed access to a wide variety of herbal goods. Their seminal Herbs of Commerce (HoC) (first published in 1992) was officially incorporated by the US Federal Government into the Code of Regulations (21 CFR 101.4) establishing consistent naming of botanical ingredients for dietary supplements. With precedent for federal recognition, their active Cannabis Committee is actively paving the path for safe and consistent use of cannabis products.
The American Society of Agricultural and Biological Engineers (ASABE) is an educational and scientific organization dedicated to the advancement of engineering applicable to agricultural, food, and biological systems. ASABE develops standards through its standards committees. Relevant cannabis committees include:
ES-300 Energy Utilization & Application: Leads and coordinates the activities of ASABE in matters related to electro-technology as related to agriculture energy efficiency, electrical wiring systems, and electrical utility programs.
ES-310 Ag Lighting Group: Leads and coordinates the activities of ASABE in matters related to agricultural lighting systems (combined with ES-311 Electromagnetic Radiation Application for Plants)
The ASABE Standards Committee ES-311 X644 Working Group is developing Draft Standard ASABE X644 Performance Measures of Electromagnetic Radiation Systems for Plants.
ASABE Plants, Animals, and Facilities Systems (PAFS) Technical Community is working with ASHRAE (through its Plant and Animal Environment technical committee) to develop x653 related to HVAC and lighting for indoor plant growth without sunlight.
American Society of Heating, Refrigerating and Air Conditioning Engineers (ASHRAE) is a professional organization seeking to advance HVACR systems and design.
The ASHRAE Multidisciplinary Task Group coordinates technical activities related to the design of indoor plant production facilities and their HVAC&R systems and considers deliverables created by Technical Committees like:
Technical Committee 2.2 on Plant and Animal Environment (concerned with the relationships of environmental conditions and the growth, health, and reproduction of plants and animals).
Link to standards relevant to cannabis production:
Established in 1898, ASTM International formerly known as the American Society for Testing and Materials is a globally recognized leader in the development and delivery of voluntary consensus standards. Working in an open and transparent process and using ASTM’s advanced IT infrastructure, our members create the test methods, specifications, classifications, guides, and practices that support industries and governments worldwide. ASTM Committee D37 on Cannabis has 1,000 stakeholders from 30 countries working together to advance the industry by addressing quality and safety through consensus standards.
Examples of standards that have already been approved for the cannabis industry use include:
D8250 Standard Practice for Applying a Hazard Analysis Critical Control Points (HACCP) System for Cannabis Consumable Products
D8222 Standard Guide for Establishing a Quality Management System (QMS) for Consumer Use of Cannabis/Hemp Products
D8197 Standard Specification for Maintaining Acceptable Water Activity (aw) Range (0.55 to 0.65) for Dry Cannabis Flower Intended for Human/Animal Use
The Design Lights Consortium (DLC) is a non-profit organization that promotes high-quality lighting solutions in collaboration with utilities and others and establishes standards for different lighting types.
The European Hygienic Engineering & Design Group (EHEDG) was founded in 1989 as a non-profit consortium of equipment manufacturers, food producers, suppliers to the food industry, research institutes and universities, public health authorities, and governmental organizations.
The EHEDG mission is defined as:
“Raise awareness of hygienic engineering, develop guidance and solutions, and provide a platform to promote EHEDG expertise that facilitates networking between hygienic engineering experts from around the world.”
EHEDG actively supports European legislation, which requires that handling, preparation processing, and packaging of food is done hygienically using hygienic machinery and in hygienic premises according to the food hygiene directive, the machinery directive, and the food contact materials directive (see EC Directive 2006/42/EC for Machinery, EN 1672-2 and EN ISO 14159 on Hygiene requirements for the design of machinery). While EHEDG is European Initiative, the EHEDG Certification Logo is becoming more widely seen on food processing equipment sold in the US as a product differentiator, offering assurances of sanitary design, cleanability, sterilizability, and bacterial tightness. It is considered more stringent than other stamps or marks. Auditors or Regulators who might be inspecting a cannabis facility, if they understood this Certification Logo, should have an impression that the operator has invested in more hygienic equipment.
ENERGY STAR® is the government-backed symbol for energy efficiency. With oversight from the Environmental Protection Agency, this program certifies the energy usage and energy efficiency of products, homes, buildings, and industrial plants. By using a common set of metrics objectively applied across categories, companies and end-users can make comparative decisions based on energy efficiency.
In many localities, the use of ENERGY STAR® certified products or achieving certification for a building or industrial plant may qualify for rebates from local utility companies. Cannabis company eligibility to participate in these programs will vary depending on local laws, products in use, and rebates offered by local utility companies.
Founded by Thomas Edison in 1896 as the Lamp Testing Bureau and renamed to the Electrical Testing Laboratories (ETL) in 1904, ETL certifications demonstrate compliance to the requirements of widely accepted product safety standards, as determined through independent testing and periodic follow-up inspections by a Nationally Recognized Testing Laboratory (NRTL). The company is now known as Intertek.
The ETL Listed Mark indicates to distributors, retailers, and customers that a product has been tested by Intertek and found in compliance with accepted national standards. Acceptance of ETL certification varies by locality though it is widely recognized across the United States and Canada.
The U.S. Food and Drug Administration (FDA) oversees the safety of all food, drugs, medical devices, and cosmetics in the United States through the Federal Food, Drug, and Cosmetic Act of 1938. Despite the current status of cannabis as a Schedule I controlled substance, the guidance provided for analogous products, particularly current Good Manufacturing Practices (cGMPs) align with global best practices that industry can follow to ensure product quality and integrity as well as prepare for potential federal legalization. Resources on the current approval process and research pathways have been published by the FDA on their page: What you need to know about cannabis compounds, CBD, cannabidiol, products containing cannabis, scientific data, development & approval process, and much more!
Some states require compliance with The FDA Food Code in their cannabis regulations, but some reference 2013, some 2017. The next issue is expected in 2021. Be aware that The Food Code is for retail and foodservice segments of the industry. Many in the cannabis sector anticipate that when Cannabis is legalized at the federal level, FDA will apply the regulatory approach suitable to manufacturing, such as:
21 CFR 111 Current Good Manufacturing Practice in Manufacturing, Packaging, Labeling, or Holding Operations for Dietary Supplements
21 CFR 117 Current Good Manufacturing Practice, Hazard Analysis, and Risk-Based Preventive Controls for Human Food
This is a very complex topic, and depending on how the sector for THC and CBD products evolve and how the products are sold and labeled. Other regulations may become relevant, such as:
21 CFR 211 Current Good Manufacturing Practice for Finished Pharmaceuticals.
The Global Food Safety Initiative (GFSI) is a private organization that oversees and approves different auditing platforms as meeting their criteria for safe food processing. This criterion provides a universal gold-standard of recognition to specific food safety audits. There are currently 10 global GFSI schemes that can award certifications. Cannabis eligibility for certification varies based on scheme and jurisdiction. Some states are requiring a GMP audit, “such as GFSI” in their cannabis regulations.
GLOBALG.A.P is a globally-recognized certification program that began as EUREGAP in 1997 to help the supermarkets in Europe address consumer concerns about the safety of agricultural practices and products. GLOBALG.A.P. is the world’s leading farm assurance program, with over 100 countries following the requirements of Good Agricultural Practices (G.A.P.). It focuses on globally accepted criteria for food safety, sustainable production methods, worker and animal welfare, and the responsible use of resources such as water, compound feed, and plant propagation materials. As of 2020, they have begun a feasibility assessment of bringing their G.A.P certification program to the cannabis industry. Cannabis and hemp businesses that are focused on cultivation of the plant would greatly benefit from incorporating these global best practices into their operation.
The Illuminating Engineering Society (IES) is a community of lighting experts seeking to improve the lighted environment by bringing together those with lighting knowledge and by translating that knowledge into actions that benefit the public.
The IES Horticultural Lighting Technical Committee researches and develops best practices for horticultural lighting using climate-based annual daylighting and electric lighting with lighting and shading controls, with a focus on greenhouses, vertical farms (plant factories), and building atria.
The committee produces Recommended Practices documents, including one for professional lighting designers who are tasked with horticultural lighting.
The International Organization for Standards (ISO) is an independent, non-governmental international organization with a membership of 165 national standards bodies that was established in 1946. Today, it has nearly 800 technical committees and subcommittees that manage the standards development process.
ISO standards focus on the business management of an organization and how information and data are reported and responded to. Some of the most common ISO standards relevant to the cannabis space are:
ISO/IEC 17025 – General Requirements for the competence of testing and calibration laboratories
The National Sanitation Foundation (NSF) originally brought together key stakeholders back in the 1940s to develop the first consensus standards for restaurant equipment sanitation. Public health inspectors liked what they saw, and began requiring product certification to NSF/ANSI standards. Currently, many states approach cannabis regulation from a foodservice perspective and the NSF Mark is desirable for equipment in the Cannabis processing room, such as sinks, rolling stock, dishwashers, and if available for cooking and packaging equipment. Even when cannabis is legalized at the federal level and the FDA regulates following Food Safety Modernization Act regulations from 21 CFR, the NSF Mark will continue to provide assurances of the sanitary design of much of the equipment used to produce Marijuana Infused Products (MIPS) However, after federal legalization, Certifications from the manufacturing perspective, such as 3-A or EHEDG, will become, most likely, more relevant.
With the Occupational Safety and Health Act of 1970, Congress created OSHA, the Occupational Safety and Health Administration, to assure safe and healthful working conditions for all workers by setting and enforcing standards. Additionally, OSHA provides training, outreach, education, and assistance. With steep fines that can exceed $50,000 for repeat violations, this commonly overlooked agency actively inspects cannabis facilities in all states. A free Guide to Worker Safety and Health in the Marijuana Industry was developed by a State of Colorado workgroup that cannabis businesses, regardless of state, can utilize.
Resource Innovation Institute is a non-profit research and advocacy organization providing guidance and data for cultivators and their project partners to use to optimize facilities for efficiency and productivity.
Cannabis PowerScore, RII’s resource benchmarking tool, is both a voluntary performance ranking system and in some jurisdictions where benchmarking is required PowerScore is also specified as a way to report energy and water information to regulators.
UL LLC (formerly known as Underwriters Laboratories) is a global safety certification company approved by the Office of Occupational Safety and Health Administration (OSHA) as a Nationally Recognized Testing Laboratory (NRTL).
The UL Listed seal means that the product has been tested by UL to nationally recognized safety and sustainability standards. Additionally, it has been found to be free from a reasonably foreseeable risk of fire, electric shock in a Division 2 environment.
U.S. Department of Agriculture (USDA) has had a significant impact on the cannabis sector through the 2018 Farm Bill, which provided authorization for the USDA to oversee the cultivation of cannabis containing no more than 0.3% THC (i.e. hemp / CBD biomass).
Additionally, the USDA would most likely be involved after legalization if Cannabis producers decided to launch Cannabis-infused meat products. So far this has not happened and the regulatory impact would be difficult to anticipate.
The U.S. Green Building Council (USGBC) is a non-profit organization that promotes high-performance buildings through the creation of voluntary certification systems for projects and credentialing programs for professionals.
The third-party green building certification Leadership in Energy and Environmental Design (LEED), is the most widely used green building rating system for commercial buildings.
The Green Business Certification Inc (GBCI), implements the LEED Accredited Professional (LEED-AP) program to support the construction of LEED-certified buildings.
The US Pharmacopeia, formed in 1820, is an independent, scientific, nonprofit public health organization devoted to improving health through the development of public standards for medicines, food ingredients, and dietary supplements, and related programs. Over 150 countries recognize the standards set by the USP, with more than 40 integrating USP standards into law. The USP formed a Cannabis Expert Panel in 2016 to support the industry with data-driven recommendations on cannabis quality attributes for human use. The 2020 paper on Cannabis Inflorescence for Medical Purposes: USP Considerations for Quality Attributes (Sarma et al., 2020) is available for download.
The International WELL Building Institute™ (IWBI™) has created the WELL Building Standard is a standardized metric for buildings, interior spaces, and communities seeking to implement, validate, and measure features that support and advance human health and wellness.
WELL was developed by integrating scientific and medical research and literature on environmental health, behavioral factors, health outcomes, and demographic risk factors that affect health with leading practices in building design, construction, and management.
NCIA’s advocacy on behalf of the cannabis industry for the last decade is paying off and it’s all thanks to our members!
More than two-thirds of Americans support legal cannabis, over one-third already live in a state with adult-use laws on the books, and the appetite for federal reform in Congress is bigger than ever. NCIA’s priority legislation, the SAFE Banking Act, was reintroduced in the House of Representatives recently and more sweeping legislation is coming in the days ahead.
There is no better time for your business to become a member of NCIA to help make the changes the industry needs to truly thrive.
In order to amplify our efforts on Capitol Hill during this pivotal time and to provide our leading members a front row seat as we make history together, we are excited to announce the all-new Evergreen Membership tier, suited for industry leaders looking for a more hands-on experience in the effort to reform national cannabis policy.
In addition to all the networking and educational benefits NCIA is known for, Evergreen-level supporters will also have direct access to our team of government relations and policy professionals in Washington, D.C.
Evergreen membership benefits include:
Private briefings and events with our lobbying team and key members of Congress,
Input into all NCIA public policy positions,
Exclusive meetings congressional offices arranged by request,
Invitation to participate in NCIA’s private Policy Summits with state regulators and policymakers,
And many more opportunities to shape the future of national cannabis policy.
In addition to the enhanced presence in our nation’s halls of power, Evergreen members receive direct ROI from a full slate of unparalleled membership benefits worth more than $75,000 in total value but dues are only $25,000 annually (monthly and quarterly payment plans are also available).
And, unlike other groups that pop up from time to time asking for your money, NCIA is a trusted organization with a track record of successfully representing the cannabis industry in our nation’s halls of power for over a decade. NCIA is also proud to not only be the largest industry advocate in the nation but also the only true full-service national trade association for the cannabis industry.
Contact us to learn more about how your business can benefit from investing in a membership today.
Service Solutions | 3.16.21 | Best of Breed Approach to Cannabis Resource Planning | Backbone
NCIA’s #IndustryEssentials webinars are our weekly educational series featuring a variety of programs allowing us to provide you timely, engaging and essential education when & where you need it most.
The cannabis & hemp industries are experiencing explosive growth. How can your enterprise stay competitive, compliant, and scale effectively?
In this edition of our Service Solutions series originally aired on Tuesday, March 16 our panel of experts led by the team at Backbone & Armanino LLP discussed the best of breed approach to selecting cannabis production, financial, demand, quality & data warehousing systems to provide custom-tailored cannabis and hemp ERP solutions.
Learning Objectives
• Learn ways to stay competitive, compliant, and scalable
• Strategies for selecting the right ERP solutions for your business
• Hear our take on custom tailored cannabis and hemp ERP solutions
SAFE Banking Act Reintroduced in House of Representatives
Bipartisan bill would remove barriers for financial institutions to work with state-legal cannabis businesses
House passage expected after being approved three times since 2019
The Secure and Fair Enforcement (SAFE) Banking Act was reintroduced in the House of Representatives yesterday. This bill, which was introduced by Reps. Ed Perlmutter (D-CO), Steve Stivers (R-OH), Nydia Velazquez (D-NY), and Warren Davidson (R-OH), would provide a safe harbor for banks and other financial institutions working with state-legal cannabis businesses
In the last Congress, this legislation was the first cannabis policy reform bill brought to the floor of the House in recent history – with 206 co-sponsors – and was the first to be approved by either chamber of Congress with an overwhelming bipartisan vote of 321-103 in September 2019. The bill moved to the Senate but consideration in that chamber was delayed due to the onset of the coronavirus pandemic. The House also approved two separate pandemic relief bills last year that included the legislation’s language.
“Thousands of employees and businesses across this country have been forced to deal in piles of cash for far too long,” said Rep. Perlmutter. “It is time to enact SAFE Banking to align federal and state laws and reduce the public safety risk in our communities. I appreciate the partnership of the cannabis industry and businesses across this country who have added their voice to this effort. The SAFE Banking Act is an important first step to treating cannabis businesses like legal, legitimate businesses and beginning to reform our federal cannabis laws.”
The SAFE Banking Act would protect financial institutions from federal prosecution for providing banking and other services to cannabis businesses that are in compliance with state law, as well as help address serious public health and safety concerns caused by operating in predominantly cash-only environments. The legislation would make traditional lending more accessible for the cannabis industry, helping alleviate the lack of access to capital that has presented major hurdles for smaller businesses. It would also mandate a study on diversity in the cannabis industry. The latest version makes clear that protections would extend to financial services providers working with the hemp industry as well.
“At a time when small businesses need all the support they can get, and after cannabis businesses specifically have been providing essential services and generating significant tax revenues for states and the federal government with little to no financial relief, it is more imperative than ever to get the SAFE Banking Act passed into law,” said Aaron Smith, co-founder and CEO of the National Cannabis Industry Association (NCIA). “Lack of access to banking services continues to create serious unnecessary issues for public safety, transparency, and access to traditional lending that smaller operators desperately need. These businesses are contributing billions of dollars to the national economy every year, and need to be treated like any other legal regulated industry. We are grateful to the sponsors of this legislation who have generated strong and consistent bipartisan support year after year, and we are confident that it has a clear path to approval again.”
Cannabis is legal for adults in 15 states as well as the District of Columbia and the territories of CNMI and Guam, and 36 states as well as several territories have comprehensive medical cannabis laws. The substance is legal in some form in 47 states. Virginia is poised to become the 16th state to pass adult use legislation when Gov. Ralph Northam signs a bill approved by the legislature into law.
Catalyst Conversations | 2.16.21 | Blazing the Trail – Black Cultivators in Cannabis
NCIA’s Catalyst Conversations are an advanced #IndustryEssentials webinar series curated to give enrollees in our Social Equity Scholarship program the opportunity to network and gain access to valuable knowledge that will help them excel in the cannabis industry.
In this edition of our Catalyst Conversations series originally aired on Tuesday, February 17 we recognized Black cultivators who are trailblazing in the industry. They shared their insights on how they got into the game, best practices for cultivating quality cannabis, and discussed their favorite strains.
Speakers included:
• @Jesce Horton – LOWD
• Will Perry – Magic Hour Cannabis
• Chris Ball – Ball Family Farms
• @Reginald Stanfield – JustinCredible Cultivation
• @Bryant Mitchell – Blaqstar Farms
• @Tahir Johnson (Moderator) – Membership and Diversity, Equity & Inclusion Manager – NCIA
A special thank you to the benefactors of NCIA’s Diversity, Equity and Inclusion Program which are listed below! These businesses have all taken their commitment to social justice to the next level by providing significant financial support for all our DEI efforts across the association. You can learn more about these initiatives on NCIA’s website by following this link then join the ranks of these pioneering businesses pushing for a more equitable industry!
NCIA Diversity, Equity, Inclusion Program Benefactors:
Member Blog: As Cannabis Sales Rise, So Do Questions About Privacy and Security
Frank Nisemboum, Vice President of ERP Sales at c2b teknologies
Legal cannabis is a big business that handles big data. From personalized data to protected health information to cannabis information that requires regulatory compliance with cybersecurity and data privacy laws–the entire cannabis industry faces data privacy and cybersecurity challenges not faced by other sectors.
But wait, other sectors have to navigate data concerns, too right? Cannabis is different. Aside from adhering to all the typical privacy concerns, cannabis data comes with a layer of complexity for cannabis operators due to industry-specific data collection and mandatory retention requirements surrounding it.
Growing Cannabis Data Collection
A cannabis customer provides a vast amount of personally identifiable information every time they buy legal marijuana products. These individuals present a government-issued ID card to confirm they are at least 21 for adult-use purchases or prove they have a prescription to access medical marijuana. The data collected on each transaction includes customer or patient name, date of birth, address, phone number, driver’s license or medical ID card numbers as well as email addresses and signatures.
Cannabis dispensaries also provide equally large amounts of operations data to METRC (Marijuana Enforcement Tracking Reporting Compliance), used in 13 states and the District of Columbia. METRC is not the only government reporting company used to maintain cannabis compliance. For example, California relies on the CCTT (California Cannabis Track-and-Trace) system to report the inventory and movement of cannabis and cannabis products throughout the cannabis supply chain.
Cannabis legalization is expected to spread across the country to all 50 states now that adult-use cannabis is permitted in 11 states and Washington D.C. and 36 states allow medical marijuana. Many of those states require all cannabis licensees, both annual and provisional, to use METRC to track marijuana products through the entire supply chain.
Cannabis cultivators, manufacturers, retailers, distributors, testing labs, and micro-businesses need to manage and maintain those records for a minimum of seven years. It’s a tremendous amount of valuable data for cannabis companies to track, the precious data cybercriminals and hackers seek out, including combinations of protected personal and health data like social security numbers and diagnoses with supplemental information like addresses, copies of ID cards.
If a cannabis company dispenses medical marijuana to patients or supports one who does, they fall into the regulatory oversight of the Health Insurance Portability and Accountability Act (HIPAA) and the Office of Civil Rights (OCR).
Safeguarding Cannabis Data
Legal cannabis and the data security issues it creates form multi-prong challenges from a legal and technological perspective. The cybersecurity and data privacy requirements don’t come with a roadmap cannabis operators can borrow from other industries due to the massive repositories of personalized data that require regulatory compliance with cybersecurity and data privacy laws.
The collection, storage, and security of all this valuable data raise many privacy and security concerns, especially when guidelines for collecting the information vary by state. For example, Ohio and California must house personal data using third-party software to track inventory and retail point-of-sales, whereas Illinois dispensaries cannot store any personally identifiable information onsite and instead use cloud or other off-location services.
Healthcare companies make attractive targets for hackers and often suffer data breach more often due to their huge storage of protected health information (PHI). Medical dispensaries and supporting companies handle PHI too, but PHI is not all a cybercriminal may want from a cannabis operation.
Employee records often contain background checks and financial data along with personally identifiable information such as name, date of birth, and SSN, all in one nice package. And cannabis data has been breached several times in recent years.
Cannabis Data Breaches Happen
Even as a newly legitimized industry, cannabis organizations have already experienced high-impact data and security breaches. In early 2020, a database breach that impacted almost 30,000 people connected to the marijuana industry resulting from an unsecured Amazon S3 data storage bucket was reported. The data breach included scanned versions of government-issued ID cards, purchase dates, customer history, and purchase quantities.
In 2019, a Canadian cannabis company exposed the electronic medical records of over 34,000 customers.
Between 2016 and 2018, the cannabis-tracking software provider MJ Freeway endured significant data breaches where over 1,000 dispensaries in 23 states were hacked. Less than six months later, hackers stole a portion of MJ Freeway’s source code and posted it publicly to social media.
Prior to that, Nevada’s Medical Marijuana Program database was breached in 2016, exposing sensitive personal data of over 11,000 people involved in the Nevada cannabis industry. This breach included names, social security numbers, race, as well as home and business addresses.
Cannabis Operators Short on Cybersecurity Budgets
Cannabis companies are responsible for securing their data to protect their customers and staff. To prevent data leakage, point-of-sale machines need endpoint protection, encryption, secure backups with proper network segmentation.
Unfortunately, some cannabis organizations fall short of installing appropriate cybersecurity measures that could have far-reaching effects on a cannabis user. Leaked personal data could have negative personal and professional consequences for the cannabis patient whose workplace prohibits cannabis use.
To avoid becoming an easy target, cannabis companies need to focus on data privacy and security just as much marketing and sales. The penalties from having a customer or employee’s personally identifiable information and cannabis-related data exposed can be too expensive to ignore and fail to give confidence that their data is secure.
Vice President of ERP Sales, Frank Nisemboum,is a trusted advisor at c2b teknologies who has guided organizations of all sizes enabling them to establish a technology presence and expand their business through technology. His proven ability to analyze the current and future plans of a company and work with team members to subsequently bring technology solutions to the organization result in improved processes and controls that assure continued growth and profitability.
Frank has worked in the ERP and CRM software selection, sales and consulting industry for almost 25 years. His strong ability to understand, interpret and match the needs of an organization to the right solution make him an asset to all of his clients.
c2b teknologies integration and engineering experts have partnered with leading cannabis industry experts to develop a software solution that provides a complete cannabis operations system. The best-in-class solution not only handles tracking of seed-to-sale activities but encompasses your entire cannabis operations with compliance needs handles along the way. Our passion for solving problems drives us to deliver innovative solutions for everyone we work with. Visit c2btek.com for more information.
#IndustryEssentials Webinar Recording – Service Solutions: Coming out of the Dark Ages – The Future of Controlled Environment Agriculture in Sealed Greenhouse Cultivation
NCIA’s #IndustryEssentials webinars are our weekly educational series featuring a variety of programs allowing us to provide you timely, engaging and essential education when & where you need it most.
The Service Solutions series is our sponsored content webinar program which allows business owners the opportunity to learn more about premier products, services and industry solutions directly from our network of established suppliers, providers and thought leaders.
In this edition of our Service Solutions series originally aired on Wednesday, December 16 we were joined by the team at Ceres Greenhouse Solutions for a conversation in which they highlighted some of the important technologies involved in modern greenhouse design, as well as their unique approach to facilitating cultivation to market strategies for those looking to enter this world of cannabis growth.
What is Controlled Environment Agriculture (CEA)? What is sealed cultivation? What does control actually mean when we talk about growing? This webinar, brought to you by Ceres Greenhouse Solutions, will explore these questions and why they matter for professional cannabis cultivation. Controlled Environment Agriculture (CEA) in cannabis has been heavily focused on indoor environments with artificial lighting. Our focus is on incorporating principles of CEA with the intelligence of nature in order to maximize plant photosynthesis and facility energy efficiency. Using sunlight as the main ingredient, we will discuss how to create an ideal environment for high yielding and high quality production.
Learning Objectives
1. An understanding of what is traditionally meant by “Controlled Environment Agriculture” and how Ceres integrates CEA into our holistic facility design.
2. How to make a business argument for “Controlled Environment Agriculture”; better ensuring cultivation to market, production management, and prediction.
3. An explanation of different types of grows and the advantages and disadvantages of them, including: Indoor Grow, Sun Tubes (Skylights), Traditional Greenhouses, and the SunChamber™.
4. What is meant by the term “controlled”? How does control relate to energy consumption and increasing yields?
5. A holistic understanding of what a plant needs to thrive; from light absorption to photosynthesis.
Panelists:
Josh Holleb
Co-Founder and Co-Owner
Ceres Greenhouse Solutions
ACTION ALERT: Congress to Vote on Historic MORE Act
The Marijuana Opportunity, Reinvestment, and Expungement Act (H.R. 3884) is expected to come to a vote in the U.S. House of Representatives in December 2020. NCIA has been building support for this bill in Congress for the last year and now we need your help!
Please call your member of Congress and ask them to vote YES on the MORE Act today!
Look up your congressional representative and contact info by zip code, here.
Reference our congressional scorecard to find out if your representatives are sponsoring NCIA’s priority legislation, including the MORE Act.
Sample script to help guide your call:
Hello! My name is _______________ and I am a constituent of yours in (city, state, zip code). I am calling today to ask that Representative _____________ votes “Yes” on H.R. 3884, the MORE Act, when it comes to the Floor for a vote in December.
This bill would remove cannabis from the Controlled Substances Act at the federal level, leaving marijuana policy up to the individual states. It also creates avenues towards expungement, re-sentencing, and assists those communities that have most been impacted by the failed war on marijuana. Additionally, legal cannabis is a huge economic driver and would help both the federal government and states’ revenue shortfalls during this pandemic.
Thank you for your time today. Again, I hope Representative _____________ will vote “Yes” on H.R. 3884, the Marijuana Opportunity, Reinvestment, and Expungement Act.
*Feel free to tell a personal story if you feel it is relevant or powerful, but remember that staffers are busy so sometimes short and sweet is best!*
Summary of the Marijuana Opportunity, Reinvestment, and Expungement Act of 2019:
The Marijuana Opportunity, Reinvestment, and Expungement Act (H.R. 3884, S. 2227), commonly known as the MORE Act, was introduced in 2019 by House Judiciary Committee Chairman Jerry Nadler (D-NY) and Senator (now Madam Vice President-Elect) Kamala Harris (D-CA).
This bill would:
Decriminalize cannabis federally: The bill removes cannabis from the Controlled Substances Act, leaving cannabis policy up to the states
Allow for expungement of marijuana convictions and arrests, sealing of records, and re-sentencing: Requires federal courts to expunge prior convictions and arrests and seal court records for those not under a current criminal justice sentence and requires courts, on motion, to conduct re-sentencing hearings for those under a criminal justice sentence.
Establish sales tax and “Opportunity Trust Funds”: Authorizes the assessment of a 5% sales tax on marijuana and marijuana products to create an Opportunity Trust Fund, which includes three grant programs:
The Community Reinvestment Grant Program, administered by the Department of Justice, would provide services to the individuals most adversely impacted by the War on Drugs, including job training, re-entry services, legal aid, literacy programs, youth recreation, mentoring, and substance use treatment.
The Cannabis Opportunity Grant Program, administered by the Small Business Administration (SBA), would provide funds for loans to assist small businesses in the marijuana industry that are owned and controlled by socially and economically disadvantaged individuals.
The Equitable Licensing Grant Program, also administered by SBA, would provide funds for programs that minimize barriers to marijuana licensing and employment for the individuals most adversely impacted by the War on Drugs.
Make available SBA programs and services to cannabis businesses: Specifies that the SBA may not negate eligibility for loans and other services based on a business being cannabis related.
Clarify federal public benefits: Prohibits the denial of any federal public benefit (including housing) based on the use or possession of marijuana, or prior conviction for a marijuana offense.
Protects immigrants: Provides that the use or possession of marijuana, or prior conviction for a marijuana offense, will have no adverse impact under the immigration laws.
Provide for data Collection: Requires the Bureau of Labor Statistics to collect data on the demographics of the industry to assess whether people of color and those who are economically disadvantaged are participating in the industry.
Age equity for juveniles: The bill applies equally to juveniles and adults, protecting young people from harmful criminal records.
#IndustryEssentials Webinar Recording – Service Solutions: “A Budding Industry” – How Filtration Solutions Can Help with Cannabis Extraction
NCIA’s #IndustryEssentials webinars are our weekly educational series featuring a variety of programs allowing us to provide you timely, engaging and essential education when & where you need it most.
The Service Solutions series is our sponsored content webinar program which allows business owners the opportunity to learn more about premier products, services and industry solutions directly from our network of established suppliers, providers and thought leaders.
In this edition of our Service Solutions series originally aired on Wednesday, November 18 we were joined by the team at Pall Food & Beverage for an in-depth look at the key market trends defining the cannabis oil market, the assorted challenges in the cannabis oil extraction process and the weaknesses which exist in current commonly used filtration methods. While doing so they outlined how to optimize your extraction process and ensure product quality with clarification and color removal solutions.
With the cannabis oil market projected to quadruple in the U.S. and Canada, cannabis oil, the oil extracted from the cannabis plant, is on a fast track for growth! Today, the biggest challenge for manufacturers is to meet the ever-increasing consumer demand for a high-quality, compound-rich oil with a clear, golden character that is free of chlorophyll. To produce cannabis oil, the compounds must first be extracted from the plant. There are several ways to extract the oil, however, the two most common methods are CO2 extraction and ethanol extraction. Following extraction is the challenging process of filtration to remove the undesirable wax that causes haze and the green color from the chlorophyll in the sativa plant. Current filtration methods pose consequences including product loss, reduced quality and consistency, and are not scalable for increasing product demand.
Speakers Include:
Connor Hutcherson
Field Application Scientist
Pall Corporation
Klaas Hesselnik Partner – Sales and Strategic Development
Helderpad
We highly encourage you to review the resource documents linked below in advance of or following the session to familiarize yourself with the products and services offered by Pall Food & Beverage. You can also find out more online here: https://www.pall.com/en/food-beverage.html
“Pall “SUPRA” Technologies are Key to Filtration for CO2 Extraction Method in Cannabis Oil”:https://bit.ly/3lSUK05
“Pall Creates Effective Two-Step Filtration Method for Clarification and Color Removal for Ethanol Extraction in Cannabis Oil Production”: https://bit.ly/2K76YE3
#IndustryEssentials Webinar Recording – Service Solutions: Which Companies are Leading in the Retail Software Segment
NCIA’s #IndustryEssentials webinars are our weekly educational series featuring a variety of programs allowing us to provide you timely, engaging and essential education when & where you need it most.
The Service Solutions series is our sponsored content webinar program which allows business owners the opportunity to learn more about premier products, services and industry solutions directly from our network of established suppliers, providers and thought leaders.
In this edition of our Service Solutions series originally aired on Wednesday, October 28 we were joined by Cannabiz Media for an in-depth look at the key takeaways from their research reports: “The Cannabis Software Stack” and the “Point of Sale Software in the Cannabis Industry – 2020 Report” just recently published.
This session will analyze the market shares of point of sale (POS) software platforms used by cannabis dispensaries and retailers across the United States and dig into trends discovered since the 2018 report. The speakers will also share what they learned about the CRM vendors in the space.
Learning Objectives:
• Learn who the market share leaders are nationally and in key markets
• Understand changing market trends since the 2018 report
• Hear our quick take on CRM software
Speakers Include:
Ed Keating
Co-Founder and Chief Data Officer
Cannabiz Media
Amanda Guerrero
Director of Sales + Trade Associations
Cannabiz Media
Sponsored By:
CannaBiz Media
Want to know more about Cannabiz Media? Head to https://www.cannabiz.media to learn more!
“Cannacurio cracks open the Cannabiz Media data vault to give you insights on licensing activity from the most comprehensive license data platform.”
#IndustryEssentials Webinar Recording – Fireside Chats with NCIA’s Government Relations Team: Spotlighting State Ballot Initiatives
The Fireside Chat series of NCIA’s #IndustryEssentials webinars are an exclusive opportunity for NCIA members to hear from our government relations team and guests about the latest developments in federal policy.
In this month’s program, Mike & Michelle were joined by panelists to discuss the cannabis ballot initiatives in Montana, South Dakota, Arizona, and New Jersey, the possible outcomes, and how it will affect federal policy priorities.
Will Arizona voters legalize adult-use cannabis after the razor thin loss in 2016? Could South Dakota become the first state to legalize medical and recreational cannabis in the same election? Will conservative Mississippi become a medical cannabis state? We’ll dive into the specifics on each referendum and make sure you have all of the relevant information ahead of Election Day to make sure you’re up to date on the latest efforts and have all of the details for you and your business.
Speakers include:
Michael Correia, NCIA
Michelle Rutter Frieberg, NCIA
Stacy Pearson, Smart and Safe Arizona
Matthew Schweich, Marijuana Policy Project
Jackie Cornell, Chief of Policy and Health Innovations at 1906 New Highs
U.S. Supreme Court Refuses to Hear Landmark Cannabis Case
On Tuesday, the U.S. Supreme Court refused to hear a prominent case, Washington v. Barr, which argued that cannabis prohibition is unconstitutional. This action in effect upholds an earlier district court ruling which said that the plaintiffs – who included a former NFL player, a veteran, pediatric cannabis patients and advocacy organizations – had not exhausted all administrative remedies available to them to change the schedule of cannabis in the Controlled Substances Act.
Last month, the law firm of Wilson Elser filed an amicus brief on behalf of NCIA and Arcview which argued that the court should proceed with the case because the historical behavior of the Drug Enforcement Administration made pursuing the remedies sought in the case through administrative means practically impossible. You can read the full brief here.
“We were disappointed that the Supreme Court declined the opportunity to address this critical issue,” said amicus contributor Michael Cooper with MadisonJay Solutions, who is the co-chair of NCIA’s Policy Council and chair emeritus of its State Regulations Committee. “As the leading non-profit trade association for the cannabis industry, we urged the Supreme Court to protect the countless Americans who rely on state-regulated cannabis programs and the small businesses that support them. We will continue to work on behalf of our members to end prohibition, whether by continuing to support crucial impact litigation such as this or through NCIA’s team of full-time government relations professionals who continue tirelessly to advocate for reform through Congress and the Executive.”
Politicoreports that the lead attorney for the plaintiffs, Michael Hiller, is continuing to explore options for appeal.
Member Blog: The Conservative Argument for Banking and 280E Reform
Why philanthropy can be the most effective weapon in the fight for banking and 280E reform
In a recent announcement by the IRS, they may allow deductions through Section 471, but it is still unclear this impact as of this writing is still unclear, so with that said, I am proposing this argument because of the impact needed TODAY to help in the economic recovery effort, given it is an election year, as well.
Before I begin, please do not construe my argument as a Republican argument for legalization. When I say conservative, I am speaking from a purely fundamental belief and values perspective, not a contemporary political ideology. There is hypocrisy on both sides and I recognize this fact.
Having a nonprofit background, most of my life has been spent hovering on the political lines, mostly policy, not parties. Liberals are traditionally more aligned with causes than conservatives, although conservatives have traditionally been more fiscally supportive of charitable causes. Why are conservatives more fiscally supportive of charitable causes? Conservative values.
The most undervalued weapon in the fight for legalization
In the fight for legalization, there appears to be a definite challenge from conservatives.
I came into this industry four years ago and noticed a disconnect between the arguments from the industry and the conservative response. Although support is growing from conservatives, most of the arguments being discussed for legalization seem to be falling on deaf ears.
Why is that? It is because the current arguments for legalization are being fed to conservatives in a language which they do not understand and are hearing as a direct challenge to their values.
The values and language of the right are fundamentally different from the left in most ways. One value which is, in my opinion, grossly undervalued by the industry is philanthropy.
Timing is everything
The health and economic ramifications of COVID-19 have caused us to look at the government and our nonprofit sector for help. The political discourse of our governments, from local to federal, unfortunately, is not helping to meet the needs of individuals or communities and thus someone has to step up. Something I haven’t heard many conversations about is our community-based nonprofits and how they are working to address the needs around COVID-19 and the economic challenges COVID-19 has manifested. Nonprofits, which are on the front line of meeting communities’ needs, from animals to veterans and every population in between, are fighting a battle from a deficit position.
The COVID-19 pandemic has cut into nonprofits’ resources while increasing demand for their services.
According to the Stanford Social Innovation Review’s “Giving With Impact Podcast,” our community nonprofits, especially 501(c)(3) nonprofits, are being “…asked to do more with less money and reduced staff while taking on an expanding client population, and all of this at the same time that revenues from services have dried up and donations from their traditional fundraising activities have declined. Some have had to lay off staff and cut salaries and others have had to cut programs.” This is according to Amir Pasic, the Eugene R. Tempel Dean at the Lilly Family School of Philanthropy at Indiana University and a professor of philanthropic studies. He also highlights that although disasters cause a spike in giving, which the pandemic did, in a recession, which seems to be a by-product of the political response to COVID-19, he states, “…we see the opposite effect… It took many years, several years, for individual giving, in particular, to recover. So in recessions giving does go down, simply because the resources that we have available go down, as well.”
Amir also states in the podcast that “…over 60% of nonprofits are anticipating significant decreases in terms of their fundraising ability. And I think many of them will be in crisis further, depending, in part, also, in terms of how federal help continues or does not continue going forward… So there is certainly a sense of crisis and pressure for many nonprofits because their services are increasingly… many of them in the human services, increasingly in need, and yet there is the sense that their sources of revenue are going to be under severe pressure at the same time.”
In the same podcast, Mary Jovanovich, Senior Manager for Relationship Management at Schwab Charitable, states that clients involved with their donor-advised fund are actually giving 50% more at this time. Looking at this in the most simplistic way, those who can give more are giving more, but giving is being done by fewer people and thus still creating a deficit.
Together we CANNA make a difference!
Of course, those companies and people who are doing extremely well are the usual suspects. But what about a flourishing industry? One which is new and growing, and has been growing through a pandemic? An industry that is doing better than most industries and has the reach and means to impact the communities which they serve and beyond? What would be holding them back from coming to the rescue of the communities they serve and ultimately helping the entire nation?
Well, not to put too fine a point on it, but taxes!
If you are a company with an effective tax rate of between 60 and 70%, you might need to hold on to your profit in order to make sure you and your employees survive in case something else is looming on the horizon. Say an election?
Imagine a time when the cannabis community comes together to elevate those nonprofits which are providing the most impact on our economic and social recovery. The world is watching and in awe of the support being provided to tens of thousands of deserving nonprofit 501c3’s and the Senate is watching as thousands of the nonprofits in their states are participating, which is a statement that they are willing to accept support from the cannabis industry. This is the way you sway minds and hearts.
The Conservative Argument for 280E Reform
Conservatives believe in free markets and thus less regulation, in the belief that the growth of companies and the economy will thrive and ultimately self-regulate as much as it can with limited governmental intervention. This needs to be applied to the cannabis industry as well. But not just for the reasons you may think. 280E reform needs to take place NOW so that philanthropy can be elevated and help address COVID-19 and economic recovery challenges.
The effective tax rate is high specifically due to the IRS code 280E, which does not allow cannabis companies to write off typical business expenses, things like marketing, depreciation on equipment, and other expenses including charitable donations to 501c3 nonprofits! Just imagine what could be done if a cannabis company, many of which are already giving without the tax advantage, was given a tax incentive to donate? Everyone understands the taxes imposed by the states and municipalities for the legal purchase drive the cost of cannabis up. So the margins are fairly thin when compared to that of other companies that do not have to abide by 280E. 280E is government regulation. Conservatives tend to be for free markets. If, as we all know, even my fundamentalist Christian friends know, that cannabis will be federally legal eventually, why not take this opportunity to deregulate this industry allowing it to assist in addressing community resource deficits at a time when it is needed most? This argument also addresses the fundamental hierarchy, which conservatives believe should be the path of assistance, self, family, church, community, local government, and finally state government, in that order.
I do not mention the federal government, because another value of conservatism is small government and that the federal government is there to protect the inalienable rights of humans as well as the right to property. Traditional conservatives believe in a helping hand, but only a temporary one as they understand many might not have all the support systems in place mentioned previously.
So the argument for 280E reform, in the context of nonprofits and helping with the health and economic crises stemming for COVID-19, addresses the conservative values of human rights, property rights, individual responsibility, free markets, lower taxes, and deregulation of businesses.
The Conservative Argument for Banking Reform
Now, imagine that 280E was reformed or no longer applicable to LEGAL cannabis companies. There is still a problem. Even if 280E was rescinded for the cannabis industry, banks may still not allow them the same banking services because it would in effect still be federally illegal. If this is the case, even if a company chose to donate to a willing charity, the charity would fall under these very same banking laws and thus might not be able to deposit funds from the cannabis industry into their bank accounts, running a risk that their accounts could still be closed for accepting money from a federally illegal activity. So truly, banking and 280E reform are not just a cannabis industry issue, but a nonprofit sector issue, which needs to be addressed sooner than later!
Now, we all know many charities will still not accept the funds offered from cannabis companies due to many factors, however, many of those most impacted by the pandemic and economic decline, such as those focused on food, housing, homelessness, veterans, mental health, senior citizens, and others, could benefit from receiving funds from cannabis companies as their own resources are diminishing. Therefore, the fight for our nation’s recovery needs to include banking and 280E reform for an industry which can make a difference for many!
Because TOGETHER WE CANNA MAKE A DIFFERENCE (If given the opportunity)!
Founder of Corporate Compassion, LLC and DBA CannaMakeADifference, Kevin J White is a social entrepreneur, nonprofit evangelist, volunteer activist, community engagement advocate, tennis player, golfer, BUCKEYE, and Avid shoe wearer.Kevin began his journey into social entrepreneurship after a 20+ year career in the nonprofit sector. Having started his career as a direct care counselor for at-risk children he advanced through the nonprofit sector, eventually moving to Colorado for a job with a major animal welfare nonprofit, overseeing 4 departments and over 100 staff and volunteers, eventually creating his own nonprofit 501(c)(3) public charity. With a strong background in nonprofit management and resource management, he began his cannabis journey through his Colorado-based, 501c3 nonprofit, having to identify the benefits and challenges of accepting support from the cannabis industry. He realized that there were some challenges for both sectors and decided to further his social entrepreneurship by consulting with cannabis companies looking to strengthen and develop their cause-marketing and philanthropic goals. This was the birth of CannaMakeADifference.
CannaMakeADifference is a strategic consulting company created to assist purpose-driven cannabis companies with meeting their cause-marketing and philanthropic goals. He has co-authored two white-papers, one for cannabis companies and one for nonprofits, highlighting the benefits and challenges of working with each other.
Kevin also hosts a podcast called Together We CANNA Make A Difference which highlights philanthropy in the industry and companies making a difference from the cannabis sector. You can download the podcast on most major podcast platforms including Google Podcasts and Apple Podcasts.
#IndustryEssentials Webinar Recording – Service Solutions: Managing Cannabis Business Operations During a Crisis
NCIA’s #IndustryEssentials webinars are our weekly educational series featuring a variety of programs allowing us to provide you timely, engaging and essential education when & where you need it most. The Service Solutions series is our sponsored content webinar program which allows business owners the opportunity to learn more about premier products, services and industry solutions directly from our network of established suppliers, providers and thought leaders.
In this edition of our Service Solutions series originally aired on Wednesday, September 23 we were joined by NexTec Group and Ogen Cannabis for an in-depth look at the benefits provided by implementing an enterprise resource planning (ERP) solution into your cannabis business.
Cannabis cultivators and processors are faced with unique challenges as a result of the COVID-19 pandemic. Managing risk in an uncertain environment is one of the key values that an enterprise resource planning (ERP) solution brings to maintaining business continuity.
Join NexTec as we welcome Darren Brisebois President of Ogen Cannabis to speak about:
• Keeping production on track
• Managing shifts in demand
• Reacting to supply chain challenges
• Proactive risk analysis
• Adapting to staffing challenges
• Changing product mix, packaging and delivery cycles
• Managing cash flow, financials and planning
Speakers include:
Darren Brisebois
President
Ogen Cannabis
Webinar Recording: NCIA Committee Insights – What’s Going On With Social Equity In Illinois?
In case you missed it, watch the recording of this webinar from Wednesday, July 15, 2020.
NCIA’s #IndustryEssentials webinars are our weekly educational series featuring a variety of programs allowing us to provide you timely, engaging and essential education when & where you need it most. The NCIA Committee Insights series showcases content produced in partnership with one of our 15 member-led committees.
? What has taken Illinois so long to announce its first round of Social Equity license winners?
? When Illinois legalized Adult Use on January 1st of this year, it announced itself as a national leader in the fight for Social Equity.
? Is it making the impact it set out to in communities Disproportionately Impacted by the War on Drugs?
Find out directly from stakeholders in Illinois how the program has or hasn’t been working. How will the failings and successes in Illinois thus far impact other Social Equity programs around the nation?
Members of NCIA’s Diversity, Equity, and Inclusion Committee and Special Guests from the Chicago Community spoke on the subject, including:
⭐️ Tahir Johnson, Business Development Manager, National Cannabis Industry Association (Moderator)
⭐️ Christine de la Rosa, CEO & National Co-Founder, The People’s Dispensary
⭐️ Mike Lomuto, Co-Founder, Boost
⭐️ Mark Slaugh, Founder, iComply
⭐️ Rev. Anibal Vega, Social Equity Partner, The People Dispensary Chicago
⭐️ Ron Holmes, Co-Founder, Majority-Minority Group
⭐️ Kay Villamin, Co-founder & Creative Marketing Director, Hush Chicago
⭐️ Michael Malcolm, Founder & Cannabis Consultant, WTF Media; Social Equity Applicant – Chicago
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by Madeline Grant, NCIA’s Government Relations Manager
by Elise Serbaroli of 
Elise Serbaroli leads Global Business Development at 
The cannabis industry is one of the fastest-growing industries in the U.S., maturing at more than 25% annually. As the cannabis industry continues to emerge and flourish from state to state, there remains uncertainty as to the immediate future of federal legislation to 
by Beau R Whitney, NCIA’s Chief Economist
Consider the entire space
Use acrylic blocks to add interest
Choose cannabis-specific displays
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Vice President of ERP Sales, Frank Nisemboum,
