Action Alert: YES on Blumenauer-Norton-McClintock Amendment #17
This week, the House of Representatives will vote on protecting adult-use cannabis businesses, consumers, and state programs from the federal government and we need your help now.
The Blumenauer-Norton-McClintock amendment states that no funds from the Department of Justice may be used to prevent any adult-use cannabis states from implementing their own laws that authorize the use, distribution, possession, or cultivation of cannabis.
Today, we need you to call your Representative and tell them to VOTE YES on the Blumenauer-Norton-McClintock amendment (#17) to the Commerce, Science, and Justice appropriations bill.
Find your Representative by clicking here and check our Congressional Scorecard to see where your Representative stands on our industry’s issues!
Since 2014, members of Congress have passed annual spending bills that have included a provision protecting medical cannabis businesses, patients, and programs from undue prosecution by the Department of Justice.
The bipartisan Blumenauer-McClintock amendment simply removes the word “medical” from that provision in order to protect those 11 states that have legalized adult-use cannabis for adults over the age of 21.
We urge you to VOTE YES on Amendment #17 to the Commerce, Science, and Justice appropriations bill, which is the bipartisan Blumenauer-McClintock amendment.
Today, more than one in five Americans reside in a jurisdiction where the adult use of cannabis is legal under state law.
Our industry supports hundreds of thousands of jobs, tens of millions in tax revenue, and billions in economic activity – so please, call and help us protect it.
Webinar: Demo Of BDS Analytics GreenEdge Retail Sales Tracking Data Platform
Did you miss this recent webinar? You can still watch the recording of the demo of BDS Analytics GreenEdge Retail Sales Tracking Data Platform and learn more about how it will help your business:
– See what kinds of products consumers are buying
– Access accurate cannabis market data based on real point-of-sale transactions
– Study sales by category, sub-category, channel and region
– Improve your business’ profitability, mitigate risk to attract more investment, spot trends as they emerge, etc.
– Data for AZ, CA, CO, NV, OR, & WA markets available
VIDEO: Member Spotlight – Magnolia Wellness
In this month’s video spotlight, get to know Debby Goldsberry, Executive Director of Magnolia Wellness, and her team based in Oakland, California. Debby is a community leader who is active in the campaign to reform the California state cannabis laws and to protect patients’ rights. Learn more about how the team at Magnolia Wellness creates a healing environment for their patients, including the East Bay’s only vapor lounge and dab bar, and how they give back to the community through various social programs.
NCIA’s 9th Annual Lobby Days – Strength in Numbers, Power in Progress
Just two short weeks ago, NCIA hosted our 9th Annual Cannabis Industry Lobby Days. This impactful event brought over 250 NCIA members to our nation’s capital to advocate and lobby on important issues facing our industry like access to financial services, amending IRC Section 280E, and addressing social equity.
Over the course of 48 hours, attendees met with nearly 300 congressional offices to share their stories and experiences, and dropped off informational materials to 200 offices that we did not schedule meetings with. In addition to these meetings, we had two briefings, held a PAC fundraiser, and hosted our first-ever VIP Day for members of our Leadership Circle. Let’s take a look at some of the highlights from this important event:
To kick off our first-ever VIP Day, we held a briefing at the House of Representatives entitled “SAFE Banking: Where We Are, and Where We’re Going,” where Congressman Ed Perlmutter (D-CO), the lead sponsor of HR 1595, the Secure and Fair Enforcement (SAFE) Banking Act, kicked off the day. On the panel was Tanner Daniel of the American Bankers Association, Becky Dansky of SARBA, and Gail Rand of ForwardGro, while attendees included NCIA members, congressional staff, and members of the press.
Following the briefing on banking, VIP Day attendees were shuttled to a luncheon featuring Reps. Joe Neguse (D-CO), Katie Porter (D-CA), Gil Cisneros (D-CA), and Steven Horsford (D-NV). All of these members of Congress are freshman who support cannabis reform, and talked about the importance of advocacy and the use of political action committees like the NCIA-PAC that they rely on.
After lunch, VIP Day attendees were shuttled back to Capitol Hill, where teams met personally with members of Congress, committees of jurisdiction, and congressional leadership.
Our first ever VIP Day was a huge success, and we thank the members of NCIA’s PAC Leadership Circle for their dedication to advocacy.
Lobby Days then officially started with a Welcome Reception attended by other advocates in Washington, D.C., NCIA members, and even congressional staff!
The following day, the work really began at our breakfast training. There, attendees met with the groups that they would be in for the day, were taught talking points on various bills and issues, and learned about how to use the app that housed all of their meeting information.
Washington, D.C. is full of great photo ops, so after our breakfast training, all of our attendees shuttled over to the Capitol… and snapped a few selfies, of course!
Meetings on Capitol Hill went from 12pm to 4pm. Each of NCIA’s 54 lobbying teams had at least four meetings over that course of time. Some groups were even lucky enough to sit down with members of Congress to talk about the issues that affect them and their businesses the most.
The day concluded with a fundraiser for the NCIA-PAC. This year’s event was wildly successful, as we had 15 members of the House of Representatives (Reps. Porter (D-CA), Charlie Crist (D-FL), Josh Harder (D-CA), Earl Blumenauer (D-OR), Ruben Gallego (D-AZ), Salud Carbajal (D-CA), Jared Huffman (D-CA), Jason Crow (D-CO), Brendan Boyle (D-PA), Diana DeGette (D-CO), Denny Heck (D-WA), Barbara Lee (D-CA), Dina Titus (D-NV), Susie Lee (D-NV), Matt Gaetz (R-FL)) attend and speak, as well as Sen. Jeff Merkley (D-OR).
The final day of Lobby Days began with a standing-room-only briefing that focused on NCIA’s new white paper titled “Increasing Equity in the Cannabis Industry” that our Policy Council worked on with the Minority Cannabis Business Association (MCBA). Opening remarks were given by MCBA’s President, Shanita Penny along with the Principal of Greenbridge Corporate Counsel, Board Vice-Chair of the National Cannabis Industry Association, and Co-Chair of the Minority Cannabis Business Association Policy Committee, Khurshid Khoja. We were also joined by two members of the Congressional Hispanic Caucus, Rep. Lou Correa (D-CA), and Rep. Ruben Gallego (D-AZ).
Lobby Days wrapped up with small groups dropping off folders with informational materials to congressional offices that we were unable to schedule meetings with. While some may think these drop-ins are ineffective, they actually prove to be incredibly helpful long after our attendees go home.
The dates for NCIA’s 10th Annual Cannabis Industry Lobby Days have already been chosen, so mark your calendars for our biggest year yet, happening May 19-21, 2020!
Be sure to check out the full photo album from this year’s Lobby Days!
Congratulations to Ean Seeb For His New Public Policy Role!
Photo By CannabisCamera.com
NCIA leadership and its Board of Directors are thrilled to be celebrating the transition of one of our very own cannabis industry leaders into a prominent public policy role for the state of Colorado. Please join us in congratulating Ean Seeb for his new role as Governor Jared Polis’ Special Advisor on Cannabis.
Throughout his career, Ean has been a tireless advocate for replacing criminal marijuana markets with a socially responsible and well-regulated cannabis industry and now he’s bringing that experience into the public sector.
Ean has served the cannabis community and industry for more than a decade, and now moves on from his role as co-owner and founder of Denver Relief and Denver Relief Consulting, as well as other endeavors including Manna Molecular which he represented on the NCIA board of directors. Ean was an active member of the NCIA board of directors for nearly seven years and chairman of the board for two of those years.
“I can’t think of a better person to advise Governor Polis on cannabis policy. During his tenure in the private sector, Ean has always demonstrated a commitment to justice, personal liberty, and corporate social responsibility,” said NCIA executive director Aaron Smith. “The people of Colorado are very lucky to now have him now putting his talents and passion to work for them.”
“Ean is a leader in the cannabis industry and we are thrilled to have him on our team. We welcome his incredible expertise and know he will help us continue Colorado’s leadership in this growing industry,” said Chief of Staff Lisa Kauffman.
“I’m incredibly grateful to have had the opportunity to work with NCIA over the years to help promote the interests and best practices of the cannabis industry as a board member and citizen lobbyist. I entered the cannabis industry because I wanted to help people suffering under marijuana prohibition, and NCIA made it possible to that on a larger scale,” said newly-hired Ean Seeb.
It was through NCIA that I met then-Congressman Polis – at the very first NCIA event in Colorado in 2011, which eventually led to my new role in the Governor’s office. Now I have the chance to help even more people throughout the great state of Colorado and beyond in the coming years.”
Congratulations and best wishes, Ean!
VIDEO: The Bright Future Of The Cannabis Industry
The future is bright for the cannabis industry!
Let’s build it together.
Despite the many struggles our industry faces due to federal prohibition, there’s strong optimism for the direction we are going into the future.
Hear more from these NCIA Members about the amazing industry we are building together:
For even more inspiration, download this NCIA Policy Council Report – “The New Politics of Marijuana: A Winning Opportunity For Either Party” – to learn more about the significant voter support for marijuana policy reform and the legal cannabis industry through thoughtful examination of recent public opinion polling and electoral wins.
Plus, check out our event calendar and get your team registered!
Not yet a member of NCIA?
Stay up to date about the rapidly evolving landscape by networking with nearly 2,000 member companies who are part of a movement to build a responsible industry.
Over the past five years, cannabis industry professionals, policy makers, advocates, and entrepreneurs have convened to network, learn, and discover at the NCIA’s Cannabis Business Summit & Expo. As the industry continues to rapidly evolve, getting accurate and relevant information from experts in the field becomes increasingly important for the success of your business.
Fortunately, as the cannabis industry’s largest national trade association, NCIA is able to convene the industry’s leading experts to share their knowledge about issues from cultivation best practices to technology breakthroughs. Don’t miss these 10 noteworthy speakers at this year’s 6th Annual #CannaBizSummit!
Shanita Penny, M.B.A. is an internationally recognized cannabis advocate, management consultant, and entrepreneur with extensive experience helping Fortune 500 companies and startups solve complex issues and improve business performance. In 2015, she founded Budding Solutions to change the perception of cannabis on a global scale. Shanita has supported and coached cannabis advocates, business professionals, entrepreneurs, and policy-makers throughout the country to get results. She works with clients to create and grow compliant, successful cannabis businesses and empower them to positively impact the burgeoning cannabis industry and communities.
Alex Cooley is the co-founder of Solstice, through his diligent efforts they created first ever fully permitted cannabis production facility in Washington State. From inception, Solstice’s goal has been to cultivate the highest quality, most beneficial varieties, including the award winning, CBD-rich Sour Tsunami #3. In addition to this he has helped to author the “collective garden model” of safe, legal access for medical cannabis patients in 2011. As part of Alex/Solstice’s mission to be a positive catalyst in the cannabis industry and offer a new message about cannabis, Alex uses environmentally responsible practices, serves as an adviser to Washington State, and continues to advocate for patients’ rights.
Brittny, a co-founder and Director of Operations of The Cannabis Conservancy, grew up in Canada’s cannabis capital, Nelson BC. In 2018, she was elected to serve as a Councilor for the City of Nelson. She has had a lifelong interest in the cultivation and legalization of Cannabis. Her interest in corporate environmental practices was reinforced while working in Canada’s oil sands with a small contractor at Suncor, the first company to develop the oil sands, which inspired her to pursue an internship on Vandana Shiva’s seed saving farm in India and an M.Sc. in Environmental Science and Policy. Brittny has led teams in product development, service procurement (multi-million-dollar service contracts), sales, and communications.
Prior to joining Simplifya, Amy served as the VP of Marketing for COHN, and led its dedicated cannabis division, COHNNABIS, which she helped to launch in 2016 and grow into one of the most respected marketing agencies in the industry. During that time, she worked closely with clients across multiple cannabis verticals from infused products and dispensaries to B2B ancillary service companies including Surna, Seed & Smith, Canna Advisors, Papa & Barkley, Next Frontier BioSciences, Verra, General Cannabis and more.
Sabrina Fendrick is the Director of Government Affairs for Berkeley Patients Group (BPG), the nation’s oldest, continuously operating dispensary in the country. She has over ten years of political, industry and advocacy experience as a cannabis professional and currently works to engage political and industry stakeholders in California regarding cannabis policy on both a state and municipal level. Sabrina works on the development of local ordinances, legislation, and regulations, and in early January 2018, led the notably successful effort to cut Berkeley’s local adult-use cannabis tax rate in half. Before her arrival at BPG in 2015, she spent seven years at the Washington D.C.-based National Organization for the Reform of Marijuana Laws (NORML).
Chanda Macias, PhD, MBA is the CEO and owner of National Holistic Healing Center (NHHC), the leading medical marijuana dispensary in Washington DC. Dr. Macias has spent 15+ years developing knowledge of medical marijuana impact on patients. Under her leadership, NHHC has earned $6.5M in annual revenues in 3 years with 98% retention, and adding 100+ new patients/month. Dr. Macias contributes growth to the market through education on ailment strain alignment, aligning a medical marijuana strain with a specific condition or ailment.
Ben Curren is the CEO and founder of Green Bits, the nation’s leading compliance and retail management platform for the legal cannabis industry. Green Bits helps legal cannabis retailers run compliant, operationally efficient and growing stores. The platform serves approximately 1,000 cannabis retailers across 12 states and processes over $2.5 billion in sales annually through its point-of-sale platform. Before Green Bits, Ben co-founded Outright in 2008, an accounting program for freelancers and consultants. Four years later, he sold Outright to GoDaddy, the giant web-hosting company. Ben believes that you must understand why things are the way they are before you can successfully change them.
Ian Stewart is a partner and co-chair of Wilson Elser’s national Cannabis Law practice. Leveraging his 20 years of legal experience, Ian helps clients navigate the challenging new risk management, business practices and insurance landscape presented by the rapidly developing area of Cannabis Law. Ian helps traditional and new organizations prepare for regulatory changes and liability trends whether dealing with regulatory compliance, product liability risks, defense of false advertising and unfair competition claims, professional liability risks, brand protection and obstacles to protecting intellectual property, assisting startups with novel risk management methods, or insurance coverage problems created by conflicting state and federal laws.
Michael Cooper is the Co-Founder and Managing Member of MadisonJay Solutions LLC, a leading regulatory advisor to the adult-use cannabis industry that helps businesses understand the latest rules and build effective compliance infrastructure to address risk. Michael draws on his time as General Counsel of MHW, Ltd. and prior regulatory law practice where he designed compliance programs, advised on regulatory risks for mergers and financings, and defended companies before regulators. He is a graduate of Harvard College and Harvard Law School, clerked on the U.S. Court of Appeals for the Fifth Circuit, and practiced at Cravath, Swaine & Moore LLP.
Andrew Kline joined NCIA as Director of Public Policy in early 2019 to lead substantive public policy efforts, striving to prepare and protect the state-legal cannabis industry. Kline also served as Chief of Staff and Senior Advisor for Intellectual Property Enforcement in the Executive Office of the President [Obama] where he led public-private partnership and public policy efforts.
Don’t miss your opportunity to network and learn from the industry’s leading experts at the most influential, award-winning cannabis trade show in the U.S. – NCIA’s #CannaBizSummit. See you in San Jose!
NCIA members lead the industry’s efforts to change national policy while enjoying benefits that provide a competitive advantage over isolated cannabis business operators.
As more investors consider the cannabis industry as a growth market, the need for cannabis cultivation facilities, processing centers and dispensaries is projected to rise to keep pace with demand.
A report from New Frontier Data projects that by 2020 the legal cannabis market will create more than a quarter-of-a-million jobs. These are more than the jobs expected to be created from manufacturing, utilities or even the U.S. government, according to the Bureau of Labor Statistics.
Forbes magazine estimates that medical marijuana sales are projected to grow to $13.3 billion by 2020. With this growth will be the need for quicker, cost effective construction with investors likely to consider the remodeling option.
There is value in remodeling the interior design of existing abandoned or non-productive buildings into state-of-the-art cannabis facilities that can be brought to life quickly and on-budget so that the facility becomes a new source of jobs and tax revenue for the area. This is a popular option for investors looking to tap into the burgeoning cannabis market.
Cannabis businesses have to keep track of many moving pieces in the name of compliance, growth and sustainability. Industry experts are seeing value in integrating processing and cultivation at the same site, which can open the door for better quality control. A well-designed cannabis process goes far beyond just extraction; it overlaps heavily with cultivation on the front-end and product development on the back-end.
Security is a growing issue for cannabis dispensaries, cultivation and processing facilities. According to Security Sales & Integration magazine: “Once the products reach the warehouse or dispensary shelves cannabis companies rely on advanced security systems including visual and audio surveillance to protect their valuables and even their license. In order to prevent diversion of product, most state cannabis regulations require growers, storage facilities, processors and dispensaries to have advanced video security systems.”
Cannabis facility building contractors are charged with integrating top level security measures into their renovation. This is not only relevant to cultivation facilities, but also processing facilities and dispensaries. This builds confidence with clients and investors.
When building a cannabis cultivation facility, it is critical to understand that local codes are constantly changing as local building and fire departments try to keep pace with the rapid rate of changes in the industry. Rather than try to wade through these regulations, it is important to consult with a contractor who is experienced in the industry and is current with the latest changes.
Here are a few examples of buildings remodeled into high end cannabis facilities:
CFC renovated a 5,200 square-foot dispensary in Morris, Illinois that evokes old world charm, including a bar that originally was constructed in the Anheuser-Busch pavilion at the 1893 Chicago World’s Fair. The dispensary was originally the Rockwell Inn.
According to Mitch Kahn, CEO and founder of Grassroots, a national leader in medicinal cannabis, “It really is just a neat building with character that we wanted to keep, from the tin ceiling to the bar that’s over 100 years old, and retrofit it to our purposes. We saw the promise of remodeling an old building and turning it into a modern facility.”
A remodeled 40,000 square-foot cultivation facility in Illinois that was formerly a roller skate manufacturing facility. The facility was positioned in an Enterprise Zone that saved the dispensary owner more than $300,000.
Investors looking to build cultivation, processing and dispensary facilities, particularly in controlling construction costs, should:
Know there is an art and a science to converting raw materials of cannabis and finished products so any construction must meet all state regulations and local fire and safety codes.
Find a partner that can manage security infrastructure and planning as well as permitting and compliance support. It is critical to balance safety and customer-engagement.
Hire general contractors that will work on a fixed sum in lieu of a percentage of construction. This is especially important when it comes to a partner who will closely watch trade contractors to ensure they provide the best possible solutions, taking into account time and money.
Work with a partner that will watch their back from a relationship standpoint, not just the transaction.
Albert Marks is Client Relations Manager for Cannabis Facility Construction based in Northbrook, Illinois. Albert currently works with clients in three states, including Illinois, Wisconsin, and Massachusetts. Marks draws on his extensive knowledge of social media and digital marketing. He oversees the company’s blog, LinkedIn, Facebook, Instagram, and Twitter profiles. Marks is trained in using the SalesNexus CRM software, which he has used to make connections while working with clients, industry partners and trade partners in the residential, commercial, retail, restaurant, exterior and cannabis verticals.
Member Blog: Doing More With Less – Ways To Expand Yields, Save Money, And Keep Quality
As the cannabis industry continues to expand, commercial growers are looking for new and cost-effective ways to get a competitive edge in an increasingly crowded market.
The persistent and ever-growing demand for cannabis products has industry professionals wondering how they can increase their production levels and maintain quality while remaining profitable. Simultaneously, the price of cannabis continues to drop yet operational costs facing growers remain the same — this combination undoubtedly limits the ability to make much-needed investments or updates to their facilities. While the answer may be different for each grower, evaluating a few key areas may lead to increased production without the skyrocketing expenses.
What are some of the best ways to cut down on costs without inhibiting quality? Start by asking the right questions.
Which Lights Provide the Right Intensity, Spectrum, and Efficiency for Your Grow?
It can’t be emphasized enough that lighting plays an integral role in the success of any harvest. When growing indoors, agriculturalists lose exactly what plants need to survive: the sun. LED lights that produce the appropriate light spectrum and intensity can be a (sometimes superior) replacement for the sun.
When used effectively, LEDs can mimic the changing of the seasons — thereby allowing horticulturalists to hasten flowering or encourage dormancy. They’re able to change the appearance, potency and size of the plant. Spectral tuning gives cultivators control over the timing of the plant’s natural life cycle and the resulting harvest, supporting the conclusion that LEDs are the optimal lighting choice for growers seeking higher production levels in a shorter amount of time.
LEDs deliver numerous other time- and money-saving benefits to commercial growers, including:
Energy efficiency – LEDs are an environmentally friendly and sustainable choice for horticulturalists looking to cut down on energy costs — easily surpassing other lighting technologies in this realm.
Cooler running temperature – They runs at a much cooler temperatures than most other options. This means that, even with several LED fixtures delivering bright, intense light, horticulturalists don’t have to worry about burning their plants.
Durability – Lights need to survive a high-demand, busy and ever-changing commercial grow environment. Some lights include especially durable features, such as tempered glass LED chip covers and industrial-grade aluminum — they’ll last for years while also giving growers peace-of-mind.
What Can Be Vertically Accomplished?
Vertical farming has revolutionized the way we think about indoor agriculture. With the advancement of vertical racking, growers can amplify their harvests — sometimes multiplying their crops ten-fold — without having to invest in more square footage.
While this layout certainly isn’t a new idea in agriculture, it was more recently adopted by cannabis growers as some LED grow lights are now capable of being vertically racked. Many growers’ facilities have square footage limitations, whether due to budget or state law; building up, rather than out, offers the opportunity to drastically expand growing capabilities even in smaller spaces.
To keep your vertical cannabis garden in excellent condition:
Ensure your LED lighting fixture delivers uniform light intensity, so each plant gets the light it needs at every stage of growth to flourish.
Assess whether spectral tuning is appropriate. Some growers might opt for more adjustability so they have the greatest level of control when custom crafting their crop.
Make sure you have proper ventilation. This equalizes the environment of each tier and prevents the development of microclimates or condensation — which can lead to disease or rot.
Install moveable benches to easily rearrange and access each tier as needed.
This combination of technology and intelligent design expands the realm of possibility for cannabis cultivators who want to use their space more efficiently.
Which Cutting-Edge Growing Techniques Make a Difference?
It’s also important to explore what the individual cultivator can do to improve harvests and offset costs. After all, they’re the ones who handle the plants on a day-to-day basis, and best understand what they need to prosper. Their approach plays a central role in crop health.
Commercial cultivators are able to implement advanced growing strategies to produce healthier and more profitable plants:
Tissue culture cultivation – This innovative technique is relatively new to the cannabis industry, although it has been used since the 1950s to aid in orchid reproduction. The process involves immersing cuttings from a healthy, mature plant in different hormone solutions. Tissue culture cultivation allows growers to quickly develop several — up to hundreds — of genetically identical plants.
Consolidate veg and bloom rooms – Adjustable LEDs offer an easy solution for growers who want to use the time-saving “flower-in-place” approach.LEDs start by delivering gentle springtime light, and growers gradually ramp up the intensity to replicate the height of summer. This method prevents plants from being shocked when they’re moved from room to room, encouraging resiliency — and reducing the required square footage to get a healthy harvest.
The Bottom Line
Critics of indoor agriculture argue it’s too expensive. And in some cases, skeptics have a point — when approached incorrectly, indoor cultivators are indeed faced with expensive operational costs that may slash their profits. But this doesn’t always have to be the case. Advancements in technology and design, catalyzed by the creative minds leading the industry, are making indoor agriculture more realistic than ever — for any type of grower. Furthermore, indoor agriculture gives the individual grower ultimate control over the environment. One day, variables like unpredictable weather or changing seasons can be left behind. Traditional industrial agriculture results in soil degradation and pollution — moving indoors can help mitigate this negative impact on our environment. In addition, cultivators no longer have to use harmful pesticides, resulting in a healthier product for both the earth and the eventual consumer.
Andrew Myers is President and CEO of ProGrowTech, which helps commercial horticulture operations increase profitability, yield and energy efficiency with industry-leading LED lighting systems. For more information, visit progrowtech.com.
Member Blog: ‘Topsy-Turvy’ Is The Name Of The Game In Cannabis
Now you see it. Now you don’t. What’s in compliance today may run afoul tomorrow. And federal government wishes and whims continue to cast a pall over state operations.
In this topsy-turvy environment, cannabis purveyors need to be able to pivot on a dime. Everything from labeling requirements to product track-and-trace regulations can change quickly.
Recent events in Utah illustrate topsy-turvy in action. First, the electorate approved medical marijuana on the ballot last fall. Then, the state legislature stepped in and passed a bill that overhauls the provisions in an effort to tighten up controls. On Valentine’s Day, Fox 31 in Salt Lake City reported that all of Utah’s major health care organizations will show some love, allowing physicians to recommend medical cannabis. This report follows an announcement of another bill being introduced that would tweak the provisions of the just-passed law.
Still with me? OK, there’s more. In late February, Utah’s Daily Herald reported, “The Utah County Planning Commission decided Tuesday to delay a potential recommendation to amend land use ordinances to allow for cannabis production… The delay came at the request of Robert Moore, deputy county attorney, who asked for a decision to be delayed by three months in order to see if additional legislation on medical marijuana comes before the state this legislative session and to give time for the Utah Supreme Court to review a case questioning if the Utah Medical Cannabis Act passed in a special legislative session in 2018 or if the voter-approved Proposition 2 should be current law.”
The same day, Fox 31 reported, “An attorney representing a pair of groups suing the state over the new medical cannabis law is warning cities and counties that Utah is essentially creating a state-run drug cartel.”
Takeaways for cannabis purveyors in other ‘newbie’ states
Obviously, Utah has a lot of sorting out to do before anything gets solidified. However, this roller-coaster sequence of events can serve to educate (and warn) purveyors in other states where cannabis has been legalized to get and stay on top of all the latest twists and turns. Failure to do so can easily catch someone in a compliance shortfall that can threaten or even close down their business.
Get the right people in the right spots on the bus. Big-picture thinkers and cannabis companies go hand-in-hand. While innovative, expansive thinking can be critical to a successful company launch, detail-oriented thinkers are essential to oversee and develop effective policies and follow-through in every major department—including administration, operations, legal, accounting and marketing/branding. In a complex, rapidly-changing industry such as cannabis, being nitpicky is a major asset.
Find resources providing up-to-date compliance and regulation information. One helpful resource is a report entitled, “Cannabis Packaging and Labeling Regulatory Recommendations for States and Nations,” developed by the Council on Responsible Cannabis Regulation and the National Cannabis Industry Association. There also are organizations specializing in compliance and regulation information for municipalities and states. No matter what resources are accessed, it’s always a good idea to confirm information by directly checking applicable municipal and state information centers. This is especially important given the dynamic changes occurring in the cannabis industry.
Designate go-to trusted advisors inside/outside the company to handle various challenges rapidly. At the outset, draw up a list of advisors who can provide expert advice on-the-spot when needed. In some cases, these may be the same people listed in #1 above. In other cases, more specialized resources may be required. For example, you may hire a cannabis-savvy lawyer to develop/oversee your business structure, partnership agreements and the like. Another legal eagle may be brought in to deal with such real estate-related issues as the buying/leasing of property and buildings. Yet another attorney might be on call when compliance or regulation questions arise.
Build in agility. Cover all the bases, but keep them fluid. For example, in the branding world, development of labels and packaging is a cornerstone priority that should be addressed in a thoughtful and in-depth way. But, then what happens if a state regulation altering label disclosures or packaging comes down with a short compliance lead time? You’ve got to be ready to hit the ground running both to comply and make your continued branding efforts all they can be.
Gary Paulin is Director of Sales and Client Services for Lightning Labels, a Denver-based label printer that has been offering state-of-the-art affordable, full-color custom labels and custom stickers of all shapes and sizes to cannabis purveyors for more than a decade. They offer many options for materials and laminates and special effects to achieve digital short-run requirements (50 minimum) on up to 15 million labels, plus Lightning fast delivery. For more information and to place orders online, visit LightningLabels.com. For the latest in packaging news and labeling promotional offers, find Lightning Labels on, Facebook, Instagram, Twitter (@LightningLabels), Pinterest, Google+ and LinkedIn.
Member Blog: Cannabis Edibles – Preparing for Government Regulations & Inspections
by Martha Ostergar, Content Marketing Manager of RizePoint
Advice from RizePoint, a leader in the quality assurance and regulatory compliance space for over 20 years.
As more states legalize medicinal and recreational marijuana, more companies are getting into the business of cannabis infused food products (CIFPs), more commonly known as edibles. These food products can take many different forms such as baked goods, sweets, oils, capsules, and tablets. As an alternative to smoking or vaping, cannabis-infused products are already on track to become a 5.3 billion-dollar industry over the next five years.
But if cannabusinesses want to get into the edibles production industry, their products need to comply with new cannabis-related city, state, and federal regulations, as well as established regulations for food and pharmaceutical products. The cannabis edibles industry is still in its infancy, and many states are still deciding how to best regulate these new products for public health and safety. This means navigating regulations can be tricky, but there are a few things to keep in mind to stay above board in this developing market.
Evolving Cannabis Edibles Regulations
Cannabis is considered a Schedule 1 controlled substance according to the U.S. Drug Enforcement Administration (DEA), and an “adulterated food product” under the U.S. Food and Drug Administration (FDA). However, the cannabis edibles industry as a whole lacks systematic federal oversight. At this stage, this means that states must decide on how to best regulate these products once voters and legislators have agreed to legalize recreational or medicinal marijuana in each respective state.
This lack of federal oversight can lead to a great deal of confusion in the industry. Nearly 100,000 packages of CIFPs have been recalled over the last few years due to inaccurate labeling, the use of banned pesticides, and other regulatory hiccups. In fact, a recent study of edible label accuracy revealed that 83% of CIFP labels differed from the actual contents of the product by over 10%, and only 17% were labeled correctly.
Key Regulatory Concerns
If cannabusiness owners want to avoid similar quality and compliance issues, they need to make sure they are following their state’s laws and regulations regarding CIFPs. That being said, some states have yet to decide how they will regulate this industry, which can leave businesses on unsure footing or without a viable quality management plan. However, the cannabis industry isn’t totally in the dark — they can look to other industries and resources to create quality-related processes that will help them protect their products, their customers, and their bottom line.
For example, cannabusinesses can look to the National Environmental Health Association (NEHA) for guidance. The NEHA has established a list of regulatory guidelines that states and other regulatory bodies can use as a reference point when drafting legislation.
Here are some examples of regulatory guidelines from NEHA’s list:
All ingredients used in CIFPs should be from FDA-approved sources, including suppliers that maintain good agricultural, manufacturing, and processing practices.
All CIFPs should be safe for public consumption and should not exceed the Code of Federal Regulations tolerance levels for controlled substances such as THC.
CIFPs should be handled in a manner similar to the methods used by the pharmaceutical industry, including accurate product labeling, product homogeneity, and accurate information regarding dose concentration per serving and as a total.
CIFPs should comply with the food laws laid out by the regulatory body, including portions, labeling, processing, and packaging.
CIFPs should not be made to appeal to children or those under the age of 21, such as using words like “candy” on product labels and in product advertising.
Additionally, looking to established federal and state regulations in the food and pharmaceutical industries can help businesses proactively understand and set important quality standards until cannabis regulations become more consistent and clear.
CIFP Quality Assurance Management
With these regulatory concerns in mind, cannabis companies can start adjusting their business operations. Proactively creating a quality management plan with high standards and consumer safety in mind is the most important step businesses can take to prepare for official regulations.
The next step is to focus on the supplier quality management process. Whether suppliers or vendors are supplying cannabis ingredients or raw agricultural ingredients, suppliers also need to meet outside regulations as well as internal brand standards that reflect a company’s specific business goals. An edibles business will need to make a plan that includes auditing suppliers at least once a year, collecting relevant and current certifications, and tracking supplier performance.
After that, quality assurance falls to the production process. As mentioned above, government regulations are only part of the quality management process. Each company will have different internal standards they wish to meet that reflect their goals as a brand, including how to produce each product consistently for a better customer experience. This process involves collecting data from yearly or quarterly audits and daily checks as well as taking corrective action when those audit questions or daily checks fail. Best practice includes reviewing and analyzing quality data to proactively understand and improve any failings in the process.
Tools for Cannabis Quality Management
That brief overview may sound like a lot, and frankly, it is. The good news is there are already tools and resources available to help the cannabis industry create and manage quality and compliance processes.
Technology is key. It’s tempting for new CIFP companies to manage everything with pen and paper and spreadsheets as a cost-saving measure. But if you look at the food industry (among many others), it becomes quickly apparent that tech and software are needed to keep up with ever-changing regulations and to properly scale a growing business. Quality management software (QMS) helps businesses gather data efficiently to create a single source of truth. But the right QMS can also help you easily analyze that data so you can spot trends, gain actionable insights, and proactively fix issues before they become bigger problems.
These types of software have helped many other industries with regulatory compliance as well as quality consistency and brand standards. However, not every QMS is created equal, so it’s important to take your time in finding a digital solution that is right for your compliance and quality needs as well as your budget.
Consultants can help. Several cannabis consultancies already exist to help new and seasoned business owners set up and maintain internal programs for regulatory compliance and quality management. Most consultancies will be able to assess and advise cannabusinesses in cultivation, manufacturing, or dispensary management, and some have resources to do all three.
Consultants are not there to set goals for you, but the right consultant can help you achieve your goals. Before contacting a consultant, it’s crucial to think about your specific needs based on your business goals so each party can manage expectations about responsibilities and deliverables. Choose a consultant that gives you a plan upfront that includes a clear timeline as well as the detailed steps you will each take in your partnership to achieve success. It’s also a good idea to be wary of consultants in any industry that ask for payment with equity.
Takeaways
No matter how much rules and regulations change, you can keep a competitive edge with little disruption to you business. If you model your quality management system on other regulated industries — such as food safety and pharmaceuticals — you’ll proactively create a robust, government-friendly plan. Additionally, when you have a comprehensive plan in place, it’s easier to pivot when there are changes, to train new employees to meet the required standards, and to scale your efforts as your business grows.
Martha Ostergar is the marketing content manager at RizePoint, a quality management software company that has helped top brands to digitally manage compliance, quality assurance, corporate social responsibility, and supplier quality management for over 20 years. VisitRizePoint.com for more information.
Member Blog: 7 Steps To Opening A Cannabis Dispensary
As cannabis reform barrels ahead like a freight train, entrepreneurs everywhere are eyeing ways to get in on the green rush. And for those without the background or interest in cultivation or manufacturing, cannabis retail can be a very alluring — and lucrative — prospect.
Of course, that’s not to say there won’t be work involved. Just like any other business, opening a cannabis dispensary requires a lot of planning, paperwork, and, of course, capital. It also requires a lot of additional compliance hurdles not often encountered in other industries.
Today, we’re looking at the seven essential steps you’ll need to address as you seek to launch your own cannabis retail venture.
Seven Essential Steps to Opening a Cannabis Dispensary
Find a suitable location.
While it might seem counterintuitive to talk about location before licensing, the fact is that in most jurisdictions, you’ll be required to have a prospective retail location identified before you can even begin filling out the licensing paperwork.
Naturally, your dispensary location will have to align with all applicable regulations, including local zoning ordinances and state-level mandates. Researching your state’s guidelines shouldn’t be too difficult, as most maintain a checklist on their official government websites.
Obtain a cannabis retail license.
This step is easier said than done — but in the end, no license means no dispensary. Each state has their own cannabis retail licensing and application structure, so once you’ve locked down a potential location, you’ll want to begin researching the requirements and getting all the paperwork in order.
Obtaining a license may take up to a few months, so you’ll be able to work on the other components of your dispensary as you work through the licensing process. But you definitely want to know exactly what you’re up against as early as possible.
Estimate your costs.
The total cost of opening a cannabis dispensary varies greatly by state and local jurisdiction. Application and licensing fees alone can range between a couple thousand dollars up to $20k. Again, you’ll need to research your state and local permitting guides to find out exactly what you’re looking at in terms of licensing fees.
Other major cost considerations will include:
Physical location (real estate rental/purchase as well as renovation, furnishing, and finishing costs)
Professional fees (insurance, legal, financial, etc.)
Payroll
Capital investments (security/surveillance system, dispensary technology, etc.)
Write your business plan.
No serious investor is going to consider bankrolling your operation without seeing a solid cannabis retail business plan. Financiers want to know that you’ve covered all your bases, and your plan should address the following key areas:
Finances
Compliance
Dispensary staff
Sales and marketing
Logistics/operations
Security
Of course, detailed information about your planned location will need to be addressed as well.
Secure your capital.
As quickly as the industry is progressing, federal cannabis banking reform could be here sooner than later. But until then, cannabis-friendly financial services are still very hard to come by. That means your primary source of funding will likely be private investors, friends, family, or yourself. There are also some well-established cannabis-specific investment groups out there that are worth looking into.
Consider your dispensary technology needs.
As a cannabis dispensary owner, you’re going to need a technology solution that not only keeps up with the typical retail performance burdens but also satisfies your state’s compliance requirements — in other words, seed-to-sale reporting.
Compliance reporting (a platform that can tie in directly to the state’s system and automatically report all necessary data can save you untold time and labor costs)
Reliability
Ease of use
Determine your product sourcing procedures.
Finally, you’ll need to determine how you’ll source your products. This is another area that you’ll need to reference your particular state’s rules and regulations on; some states prohibit dispensaries from being involved in cultivation, and others highly encourage it. Either way, you’ll likely have to obtain a separate license if you want to get into cultivation.
Start by identifying and interviewing local cannabis producers. This is also a good opportunity to determine the types of products you’ll want to offer and ways you can incorporate them into your marketing.
Want to Learn More about Opening Your Dispensary?
Get a more in-depth look at everything involved with launching your own cannabis dispensary by downloading our How To Open A Cannabis Dispensary e-book — it’s absolutely free.
Gary leads Cova’s charge into the legal cannabis space by guiding the vision, strategic development, ‘go to market’ plans and culture.
Before joining Cova, Gary was a principal in over a dozen tech start-ups in the mobile communications industry ranging from small VC funded companies to Fortune 100 firms, including Onavo, which was later acquired by Facebook. In those companies he led sales, marketing, business analytics and market expansions. He has also held a multitude of leadership roles with Verizon and AT&T.
Gary holds a degree in finance with a master’s in marketing from the University of Colorado.
Member Blog: Advice for Surviving and Thriving in the New Era of Legal Cannabis From Those Who Have Climbed The Mountain (Part 1)
The challenges facing companies pioneering a new industry where each state deals with its own issues are numerous. The importance of strategic business planning and the ability to predict future problems are essential to survival.Colorado, Washington, and Oregon have each dealt with their unique issues and challenges but there are also common problems that every cannabis business experiences: burdensome regulation, unfair taxation, and banking prohibition to name a few. Building your company and brand is dependent on your ability to maneuver your company through the obstacles that will arise in your state market while also planning for a future of legal interstate commerce through a change in federal policy. To place your company in a position to be successful, you should understand the past to predict the future.
Quick Summary of Cannabis History
The history of cannabis is long and distorted, however a few basic points of what brought us to the current state of federal prohibition and individual state markets should be noted for context.
Cannabis use as medicine dates back to 2700 BC in China, and has been used throughout history. In 1850, it was added to the U.S. Pharmacopeia. Prior to state and then Federal prohibition, cannabis was an elixir/tincture used in many common household cough/cold syrups and other medications for stomach-aches, asthma, depression, and many others. In the 1930s, cannabis was regulated as a drug in all states, and in 1937, the passing of the Marihuana Tax Act regulated it federally. Then in 1970, the Controlled Substances Act determined cannabis to be a Schedule 1 drug meaning it has no medical benefit and a high risk for abuse. From 1970 to 1996 the manufacture, use, or possession of cannabis was illegal in all fifty states.
CALIFORNIA
In 1996, California became the first state to legalize the medical use of cannabis through Proposition 215. California was the first domino to fall and further background of the early days of California medical cannabis will be addressed in later blogs in this series focusing on California. Over the next twenty years, 37 states have joined California with medically legal cannabis, and nine states have passed and implemented legal “recreational” (now referred to as “adult use”) cannabis programs.
OREGON
Oregon was the second state to pass medical cannabis in 1998 and that was the start of this author’s journey through the cannabis industry. Prior to 1998, Oregon had been a bastion of black market cannabis cultivation due to its climate and wide open spaces especially in rural southern and eastern Oregon. After 1998, the state “protections” offered by medical cannabis state law allowed the cultivation industry to flourish. However, as opposed to California the state was more focused on growing weed and selling it around the country rather than setting up a distribution system to the medical patients of Oregon. This led to some of the early challenges of the medical cannabis program in Oregon. At this time, the Oregon population was relatively small compared to the state’s cannabis production. Oregon was on its way to being one of the largest cannabis producers in the country. But because cannabis was so easily accessible there was little effort put into a healthy distribution system to Oregon patients. Most patients either grew for themselves or had a designated “grower” and that is where I started in the industry.
OREGON: FORMATION OF RETAIL ESTABLISHMENTS
As a nurse who had self medicated with cannabis for ADHD, I began growing for patients because I wanted to provide others with access to the amazing health benefits of cannabis. This was the common way most patients accessed their cannabis. There were no dispensaries when the program started and patients who didn’t have a grower were relegated to barter trade types of acquisition. In 2005, the Oregon Legislature allowed growers to be reimbursed for the cost of production and in 2010, the first dispensaries began to pop up. However, it wasn’t until 2012 that legal retail entities were allowed. This lack of a retail access point for patients was one of the first impediments to the program and allowed states like Colorado and California to take the mantel on progress of a robust program of medical cannabis distribution.
COLORADO
In 2000, Colorado became the sixth state to allow medical cannabis with Amendment 20. Its medical program remained low key until 2010 when the Colorado Medical Marijuana Code was created, which provided for licensing of production and retail establishments. This change was a giant step to the progress of cannabis legalization.
Colorado followed the early model presented in California and began implementing licensed retail establishments for card carrying medical cannabis patients. Retails stores began to flourish and this laid the groundwork for the establishment of the Adult Use program. In 2012, Colorado became the first state to legalize what was originally referred to as recreational cannabis now called “Adult Use” cannabis, which allowed the sales of cannabis to all adults aged twenty-one and older and the boom began. Colorado’s medical program developed into a rapidly growing Adult Use system and with the new federal guidance of the Cole Memo in 2013 canna-businesses began growing rapidly.
COLORADO: SEED TO SALE TRACKING
The primary language of the Cole Memo highlights a “robust tracking system” of all products produced and sold. The Cole Memo did not provide protections for cannabis businesses but provided guidance that helped assure businesses of some safety from federal interference. With the advent and implementation of a tracking system we could now be assured of where products came from and be able to track them back to their origin.
COLORADO: LAB TESTING
Once tracking was in place, lab testing for the safety of the consumer came to the forefront of industry progress. This was one of the first problems Colorado realized it had with its blossoming industry. As opposed to Oregon which required all products sold through its immature dispensary system since 2012, Colorado had not required lab testing of all its products until 2016 after several large quarantines and destruction of unsafe contaminated products. Many Colorado producers struggled with new pesticide regulations and was an early sticking point to growth of the industry. Over the first years of Adult Use cannabis program, Colorado struggled with the infancy of a brand new industry and how to regulate it and consequently, businesses suffered.
Other early challenges that the first legal state dealt with were allowable dosages and changes to dosing, as well packaging changes and the look of products, specifically how or if the products were attractive or marketed to children. The obstacles of a new industry most directly affect the businesses and their bottom lines. These are important points to consider when strategizing your business model and planning for inevitable changes to regulations. The time spent preparing for a system that will change will go a long way to ensuring for success.
WASHINGTON
Now let’s talk about Washington.
Washington was the third state to approve medical cannabis but had problems with implementation due to legislative issues. As multiple pieces of legislation were offered, adopted, and repealed, the lack of clarity prevented the medical cannabis industry from launching. Washington passed its adult use cannabis program at the same time as Colorado in 2012. In Washington, the two major obstacles the industry faced were licensing issues and taxes. A previously existing strong medical program in Colorado allowed for a seamless transition to an adult use program, but that was not present in Washington and this added to difficulties with implementing an adult use program.
Because the industry was just getting off the ground, both states relied on their medical programs as a foundation to the adult use. However, Washington’s medical program was murky and disorganized which lead to complications, Washington also limited licenses and put unfair taxes on the industry. These two factors aided in keeping the black market as the primary driver of the industry, rather than pulling people or businesses into a controlled, tracked, and regulated system.
280E TAX CODE
This provides a nice segue to one of the challenges all cannabis business face: unfair taxes in the 280E tax code. Internal Revenue Code section 280E specifically denies a deduction or credit for any expense in a business consisting of trafficking in illegal drugs “prohibited by Federal law or the law of any State in which such trade or business is conducted” which translates to only “Cost of Goods Sold” as the only deductible expenses. This means administrative costs, executive salaries, marketing and advertising, banking fees, etc., are non-deductible expenses for any cannabis business and subjects them to much higher taxes as most normal business deductions are prohibited. This challenge is one all cannabis businesses deal with and must be factored into financial modeling.
BANKING
While we are on the the subject of taxes and non-allowable deductions, banking is the other major challenge all cannabis businesses face. Due to federal policy around an illegal substance, FDIC insured institutions force canna-businesses to operate in all cash for fear of prosecution under racketeering and money laundering laws. There are a handful of financial institutions, credit unions, or state banks that offer “Enhanced Monitoring Accounts” for cannabis companies. However, they are highly priced and rare. The average cannabis bank account is likely to run $1,000.00 a month, just to have access to banking services, not including additional fees. This $12,000 a year budget line item, while not only expensive, is not a tax write-off per 280E tax code.
One can quickly see from just these two major hurdles or challenges to the industry, normal operations can be difficult. These obstacles are not to be taken lightly; they can be addressed but it must be factored into operating procedures, financial planning/budgeting, and strategic vision.
NOW BACK TO STATE SPECIFIC ISSUES
As Washington and Colorado dealt with its issues, Oregon voted to approve “Adult Use” cannabis in 2014. Using Colorado and Washington as a guide, Oregon implemented their system with more deliberation and vision based on what had been experienced in the first two states. But as was seen with the unique challenges in the first two states, Oregon encountered an entirely different set of problems. Oregon currently faces a massive oversupply problem which has affected all facets of business across the industry. In normal business and supply and demand economics, if an area is oversupplied, business move their products to where the demand is higher or the supply is lower. However, cannabis remains a federally illegal product and therefore interstate commerce remains illegal.
Oregon’s unique problem originated from two main issues:
Oregon had already established itself as a cultivation mecca
The regulatory authority decided against a cap on licenses
This lack of license caps has allowed the number of licensees to explode and thereby allowed the oversupply issue to occur and continue to grow. As stated, this is not a problem exclusive to cultivator/producers. Because of a 75% drop in value, cannabis attorneys, electricians, HVAC, security companies and other ancillary businesses are not getting paid. The oversupplied market and decreased revenue has reverberated across the industry and driven otherwise thriving companies into bankruptcy.
As you can see, each state deals with its unique challenges when implementing its Adult Use cannabis program, while we all deal with some issues that affect us all. The key to thriving… or surviving is to prepare your company to deal with the current challenges shared by us all and predict the challenges that your business will face in your state while preparation is taken for a national and international market.
James Schwartz RN, BSN, LNC, is an experienced medical legal consultant and CEO of CascadeHigh Organics with 20 years experience cultivating legal cannabis. James is a self-described organic minimalist cultivating in the most sustainable manner. James believes in clean cannabis and its use as a wellness drug. His Oregon licensed cultivation, Cascade High, has been featured in Dope Magazine and on the cover of Oregon Leaf’s Sustainability issue (March ‘18). James was featured as the Inaugural Stoner Owner by OR Leaf in Dec 2018. He has articles published by Dope Magazine about Cannabusiness and the Pharmaceutical Industry (May 2017), as well as a medical cannabis article in the Jan. 2019 Healthcare issue of OR Leaf. James is currently on the NCIA Cannabis Cultivation Committee and has presented Cannabis topics to multiple audiences at conferences including Cannabis Science Conference, PDX Hempfest, Cannabiz Convention, CBD Expo and Webinar series, Cannabis Collaborative Conference(CCC), Cannabis Nurse Conference, NCIA and educational industry mixers. His business, legal, medical, and agricultural knowledge provides a unique perspective on the industry. James has lobbied for Cannabis on both the national and state level with Oregon Cannabis Association and is a fierce advocate for the plant and all who use it.
Three New Bills In The 116th Congress
by Michelle Rutter, NCIA’s Government Relations Manager
The 116th Congress just began, but there’s already been a flurry of new cannabis bills filed. Let’s take a look at some of the first pieces of legislation to be filed in the House of Representatives on the topic:
Bill: H.R. 420: Regulate Marijuana Like Alcohol Act Introduced by: Congressman Earl Blumenauer (D-OR) What It Does: This bill was introduced in the 115th Congress by now-Governor Jared Polis (D-CO). Filed in the 116th Congress by Rep. Blumenauer, this bill would remove cannabis from the Controlled Substances Act entirely. It would also transfer cannabis enforcement authority from Drug Enforcement Administration to a renamed Bureau of Alcohol, Tobacco, Marijuana, Firearms and Explosives. Both shipping or transporting cannabis into states that have not legalized it would continue to be prohibited. Last year, the bill garnered 26 cosponsors.
Bill: H.R. 493: Sensible Enforcement of Cannabis Act Introduced by: Rep. Lou Correa (D-CA) Additional cosponsors: Reps. Steve Cohen (D-TN), Don Young (R-AK), Dina Titus (D-NV), Matt Gaetz (R-FL), Eleanor Holmes Norton (D-DC), Salud Carbajal (D-CA), Peter DeFazio (D-OR), Katie Hill (D-CA)
What it does: This bipartisan bill seeks to enshrine the now-rescinded Cole Memo into federal law. The legislation directs the Attorney General, in enforcing the provisions of the Controlled Substances Act relating to cannabis, to focus on certain enforcement priorities that were outlined in the Cole Memo, such as:
Distribution of marijuana to minors.
Revenue from the sale of marijuana from going to criminal enterprises, gangs, and cartels.
Diversion of marijuana from States where it is legal under State law in some form to other States.
State-authorized marijuana activity from being used as a cover or pretext for the trafficking of other illegal drugs or other illegal activity.
Violence and the use of firearms in the cultivation and distribution of marijuana.
Drugged driving and the exacerbation of other adverse public health consequences associated with marijuana use.
The growing of marijuana on public lands and the attendant public safety and environmental dangers posed by marijuana production on public lands.
Marijuana possession or use on Federal property.
This bill was previously introduced at the very end of the 115th Congress. NCIA is proud to have endorsed this legislation.
Bill: H.R. 127: Compassionate Access, Research Expansion, and Respect States (CARERS) Act of 2019 Introduced by: Rep. Steve Cohen (D-TN) Additional cosponsors: Reps. Don Young (R-AK) and Matt Gaetz (R-FL)
What it does: This bill would amend the Controlled Substances Act to state that regulatory controls and administrative, civil, and criminal penalties do not apply to a person who produces, possesses, distributes, dispenses, administers, tests, recommends, or delivers medical marijuana in compliance with state law. The bill also excludes “cannabidiol” (CBD) from the definition of “marijuana” and limits the concentration of delta-9-tetrahydrocannabinol (THC) in CBD to 0.3 percent on a dry weight basis. The bill also directs the Department of Health and Human Services (HHS) to terminate the Public Health Service’s interdisciplinary review process that is used to evaluate applications for medical marijuana research, opening up a multitude of research opportunities. The bill requires the DEA to license manufacturers and distributors of marijuana for medical research;, for HHS to register practitioners to conduct research, and for the Department of Veterans Affairs (VA) to authorize VA health care providers to provide recommendations and opinions to veterans regarding participation in their states’ cannabis programs.
Many more (possibly dozens!) of cannabis bills are expected to be filed in the next few months. NCIA will continue to track these pieces of legislation and endorse critical cannabis reforms on Capitol Hill.
As 2018 came to an end, the FINAL proposed text of the permanent regulations for California cannabis were submitted to the Office of Administrative Law (OAL) by the three regulatory agencies – the California Department of Food and Agriculture (CDFA), California Department of Public Health (CDPH), and the Bureau of Cannabis Control (BCC). The cannabis regulations submitted to the OAL are currently undergoing a 30-day administrative review to ensure alignment with MAUCRSA and statutory requirements. These “final’ regulations shall become effective immediately upon approval/adoption which should be on/before January 16th 2019.
What “final” means in this evolutionary process of California cannabis regulations is debatable, as there are already several Assembly and Senate bills queued up to be put through the legislative tango and all three of the regulatory agencies have indicated that there will be further clean-ups and clarifications of the “permanent” regulations. Although there will assuredly be changes ahead, this is a highlight reel of where California Cannabis stands now.
For those that dug into the October redrafts, much of the substantial changes that occurred in that version carried over into the final proposed text. Here we will highlight the top eight changes impacting cannabis businesses in California.
The Final Statement of Reasons from the BCC, which also included responses to pertinent comments received during the previous 15- and 45-day comment periods, is where some greater clarity about the regulatory changes and intents can be found. It is by spelunking into these deeper caverns of reasoning where the sweet ore of further clarity can sometimes be extracted.
Here are 8 highlights for anyone interested in California cannabis.
1. Ownership and Financially Interested Parties
In October we saw the expansion of the definition of ownership and financially interested parties that clearly sought to capture the identification of any and all warm bodies that stand to direct, control, or financially benefit from commercial cannabis. While there were some changes in sections §5003 and §5004 between the previous and current version, the scope and intent remained the same. One particularly vague line §5003.b.6.D “Any individual who assumes responsibility for the license.” was removed from the BCC’s definition of owner, this very line turned up over the in the CDPH’s update in §40102.a.4.D.
The Ownership and Financially Interested Parties disclosures dovetail into the White Labeling issues (See #2) in that “Brand Owners” that may be licensing IP to contract manufacturers have been impacted by the prohibition on non-licensees conducting commercial cannabis business with licensees. In the response to comments in the FSOR was this gem of insight, “In response to commenter’s questions, if a licensee includes as one of their owners a brand-owner, the licensee can produce the branded products because in this case the licensee is not engaged in commercial cannabis activity on behalf of an unlicensed person. Because the owner of the brand is an owner of the licensee, there is no unlicensed person involved.” Of course, before everyone runs off and adds brand-owners as owners of their contract manufacturing business, let’s take a moment to reflect on the value and critical importance of a well-drafted contract.
2. §5032 (b) The So-Called “White Label Prohibition”
5032.b shall go down in infamy as one of the more talked-about sections of the BCC’s regulations. This simple sentence, “Licensees shall not conduct commercial cannabis activities on behalf of, at the request of, or pursuant to a contract with any person that is not licensed under the Act,” brought with it a level of confusion and white-hot panic regarding the inferred white label prohibition contained therein. October’s version had more explanatory examples for the types of “on behalf of, at the request of, or pursuant to” activities that the BCC was talking about, such as, “procuring or purchasing cannabis goods from a licensed cultivator or licensed manufacturer. Manufacturing cannabis goods according to the specifications of a non-licensee, Packaging and labeling cannabis goods under a non-licensee’s brand or according to the specifications of a non-licensee, Distributing cannabis goods for a non-licensee.” This language was removed in the final version submitted to the OAL and is one of the examples of where the FSOR is enlightening.
From the BCC’s FSOR: “Initially, the Bureau determined that it was necessary to assist licensees with determining what types of activities may or may not be allowed under the Act and its implementing regulations. The initial proposed change identified certain transactions that would generally be considered commercial cannabis activities under the Act. However, the Bureau has determined that inclusion of the clarifying example transactions is causing more confusion. Accordingly, the Bureau has decided not to move forward with the proposed changes which identify examples of specific commercial cannabis transactions.” The definition of “commercial cannabis activities,” therefore, is an important one, and we can refresh ourselves on that one (Business and Professions Code §26001.k) “‘Commercial cannabis activity’ includes the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery or sale of cannabis and cannabis products as provided for in this division.”
This has been a hot, hot topic, and there have been some great analysis articles of this provision that dig further into solutions and scenarios related to this section. Get thee to Google and find out more!
3. Option to label THC/CBD post-final testing by Distributor
This was a big win for the industry! A substantial percentage of testing failures for “label claims” are due to products, previously required to be labeled with THC/CBD content prior to final testing (the one test that counts!) not falling within the 10% allowable variance threshold. It’s common knowledge that the science of cannabinoid testing is still getting dialed in, and the labs have some serious challenges in hitting the same tiny target twice. Especially when they are dealing with the vast array of cannabis product matrices, and an industry that it still learning about important things such as homogenization. The good news is, the CDPH now allows products to be labeled for THC/CBD content after that all-important final test, which should eliminate well-upwards of 50% of the product failures in California and ensure a steadier supply chain.
4.Regulation of Technology Platforms
The cannabis industry has always been a place of innovation and loophole-finding. These regulations are an attempt to close some of those loopholes that seem to have created a situation where unlicensed tech platforms were enjoying the privileges of licensed commercial cannabis without undergoing the slings and arrows of local/state licensure and regulation. Seeing themselves outside of the regulatory purview, certain business claimed that agencies such as the BCC had no dominion over their activities. Well, they may have wanted to wait until the ink dried on the final regs before making such an assertion, as now it seems the BCC has expanded its reach to embrace all kinds of advertising, facilitating, and delivery platforms.
5. Delivery to a Physical Address
This was (potentially) a huge win for patient access, however, it remains to be seen how this truly shakes out. When the BCC added the line that “a delivery employee may deliver to any jurisdiction within the State of California” it caused some serious outrage from municipalities that have banned commercial cannabis activity, the League of Cities, law enforcement, and others that saw this as a huge overstepping of the local authority ensured by Prop 64 and MAUCRSA. The LOC even launched a “wandering weed” campaign, in response to which it seems that a subsection that includes “a restriction on delivering cannabis goods to a school providing instruction in kindergarten or any grades 1 through 12, day care center, or youth center” was added to the regulations, for clarity. Whether the OAL will approve as is, and how this interacts with local bans, tax requirements, and law enforcement, and lawsuits… stay tuned! While the BPC (§26090.e & 26080.b) explicitly prohibits a local jurisdiction from preventing delivery, and transportation, of cannabis goods on public roads, it does not prevent localities that have banned commercial cannabis in their area from adopting ludicrous tax rates for deliveries that would in effect ban via taxation delivery in their area.
6. Sale of Non-Cannabis Goods (aka No Hemp)
While the seeming victory of the Farm Bill has folks leaping with joy for the future of hemp, statements from the FDA and other agencies have certainly rained on the parade of many a CBD vendor. Add to that the collections of California cannabis regulations that in effect eliminate hemp-derived CBD from cannabis dispensaries and products.
“In addition to cannabis goods, a licensed retailer may sell only cannabis accessories and any licensee’s branded merchandise.” (BCC §5407)
This limitation for retail (and retail delivery) is further clarified in the BCC’s FSOR in their responses to comments:
“Cannabis retailers are licensed to sell cannabis goods. The definition of cannabis within the Act explicitly excludes industrial hemp products. Industrial hemp is regulated by the California Industrial Hemp Program under the California Industrial Hemp Farming Act.”
“A retail license from the Bureau authorizes the retailer to sell cannabis goods and cannabis accessories. A retail license from the Bureau does not authorize licensees to sell items that are unrelated to cannabis.”
Combined with the retail prohibition on non-cannabis products, this trifecta from the CDPH extends that prohibition to manufacturers:
“A manufacturer licensee shall only use cannabinoid concentrates and extracts that are manufactured or processed from cannabis obtained from a licensed cannabis cultivator.” (CDPH §40175.c)
“Except for cannabis, cannabis concentrate, or terpenes, no product ingredient or component shall be used in the manufacture of an edible cannabis product unless that ingredient or component is permitted by the United States Food and Drug Administration for use in food or food manufacturing, as specified in Everything Added to Food in the United States, or is Generally Recognized as Safe (GRAS) under sections 201(s) and 409 of the Federal Food, Drug, and Cosmetic Act.” (CDPH §40305.a)iii. “Except for cannabis, cannabis concentrate, or terpenes, topical cannabis products shall only contain ingredients permitted for cosmetic manufacturing in accordance with Title 21, Code of Federal Regulations, Part 700, subpart B (section 700.11 et seq.) (Rev. March 2016), which is hereby incorporated by reference.” (CDPH §40306.a)
For now, it seems, non-cannabis derived CBD is DOA in CA.
7. Child Resistant Packaging (CRP) Requirement
Heads continue to spin (and cannabis business’ cash to hemorrhage) in response to the changes in the packaging requirements. As of July 1, 2018, all cannabis products were to be in child-resistant packaging, and retailers had converted back to the statutory requirement that all exit packaging was to be “opaque,” allowing them to use reusable totes and paper bags to satisfy this requirement. In the October regs, we saw a pivot that allowed for a seeming “grace period” for the child-resistant requirement to return to being able to be satisfied by the retail via CR exit bag. Some confusion remained as to whether products that were already IN child-resistant packaging would have to be put INSIDE of child-resistant packaging for the next year. The addition of the statement from the CDPH, “Until the date specified [1/1/20] the child-resistant package requirement [§26120] may be met through the use of a child-resistant exit package at retail sale.” (CDPH §40417.d) suggests that the significant ecological impact of CR packaging within CR packaging MAY be avoided, however, most legal counsel will probably be advising retail clients to use the CR exit bag to avoid potential liabilities. Viva Kafka!
In the CDPH’s Statement of Reasons, they said “This is necessary to comply with the packaging requirements in Business and Professions Code section 26120 while providing licensees with time to comply with packaging requirements.” Compliant operators were left somewhat confused, as they had been required to comply with these packaging requirements since July!
8. OSHA Training for Everyone!
All three regulatory agencies added the following requirement for OSHA training:
“For an applicant with more than one employee, the applicant shall attest that the applicant employs, or will employ within one year of receiving a license, one supervisor and one employee who have successfully completed a Cal-OSHA 30-hour general industry outreach course offered by a training provider that is authorized by an OSHA Training Institute Education Center to provide the course.”
This will be an additional training requirement, on top of existing state and local training requirements for cannabis operators. And remember, all that training documentation must be kept, like all other records, for seven years!
As with everything in life, more will be revealed as we get deeper into 2019.
Juli Crockett is a member of the NCIA’s State Regulations Committee and is Director of Compliance at MMLG. Slides from Juli’s recent Workshop on this topic are available for download here. You can also watch the workshop video in its entirety on MMLG’s Facebook page.
Member Blog: News Flash – Quirky Cannabis Regulations Unchecked
California Bureau of Cannabis Control (BCC) Proposed Final Regulations:
There are some quirky cannabis regulations seldom discussed by industry professionals which have a hidden impact on your business operations. Most business owners are, as they should be, preoccupied with the more prevalent draconian-styled regulations, like license fees, taxation, and testing.
Obviously the state has public safety concerns with the legalization of marijuana, but has the state overreached in its mission to craft “robust regulations” for the industry. Upon review of 142 pages of proposed regulations, we opted to shine light on what we consider to be quirky cannabis provisions that have gone unnoticed by cannabis business owners. Some are laughable, others insulting; and as to the remainder, the state’s regulation of your cannabis business simply never ends.
The California Bureau of Cannabis Control BCC proposed final cannabis regulations are currently under review of California Office of Administrative Law AOL to complete the rulemaking process. After considering the following, one might ask, what exactly were the rule-makers thinking when they wrote these provisions?
California Quirky Cannabis Regulations
No. 1No Naked Employees
5806 Attire and Conduct
No licensee shall employ or use the services of any “host or other person to mingle with the patrons” … “in the sale or service of cannabis goods in or upon the licensed premises while such person is unclothed or in such attire, costume, or clothing as to expose to view any portion of the male or female breast below the top of the areola or of any portion of the pubic hair, anus, cleft of the buttocks, vulva, or genitals.” Nor shall the licensee encourage or permit any person “to touch, caress, or fondle the breasts, buttocks, anus, or genitals of any other person.”
– Cannabis Strip Club?
No. 2Beware Of Fake Buyers
5805 Minor Decoys
“Peace officers may use a person under 21 years of age to attempt to purchase cannabis goods, for the purposes of enforcing the Act, and to apprehend licensees, employees, or agents of licensees who sell cannabis goods to minors.”
– Entrapment?
No. 3Your Coffee Cup Is Regulated
5041.1 Branded Merchandise Approval
If a licensed distributor, retailer, or microbusiness “wishes to sell branded merchandise” – goods other than cannabis such as clothing, hats, pencils, pens, keychains, mugs, water bottles, beverage glasses, notepads, lanyards, cannabis accessories – “the licensee must receive written approval from the Bureau.”
To obtain a approval, the licensee must submit a written request and provide a photograph to the Bureau. Notably, there appears a discrepancy in the language of the regulation 5041.1 as to whether or not approval is required for all items listed in §5000(b) definition of “branded merchandise.”
Is this kindergarten?
No. 4$500 State Fee To Modify Your Reception Area
5014 Licensing Fees
An application and licensing fee of $500 is charged for “Physical Modification of Premises.”
Alterations or modifications to the premises include, but are not limited to: “the removal, creation, or relocation of a wall or barrier; or changing the activities conducted in or the use of an area identified in the last premises diagram provided to the Bureau.”
Hidden fee for commercial lease space improvements?
No. 5Cannabis Goods Intended For Disposal Must First Be Destroyed On The Premises Except Vape Cartridges Filled With Cannabis Oil
5054 Destruction of Cannabis Goods Prior To Disposal
Cannabis goods intended for disposal must remain on the licensed premises until destroyed into cannabis waste. The licensee must restrict access to the cannabis goods intended for disposal, store the disposal goods separate from the other goods, and first destroy the goods “on the licensed premises.” This includes separating the cannabis goods from any packaging, or container rendering it “unrecognizable and unusable.”
However, the licensee is not required to empty vape cartridges of cannabis oil prior to disposal, “provided that the vape cartridge itself is unrecognizable and unusable at the time of disposal.”
Statutory rhetoric?
No. 6 You Get One Chance, With One Lab, To Test Your Cannabis
5305.1 Re-sampling
Once a cannabis sample has been obtained for testing by the laboratory employee – which sampling must be “video recorded with the batch number stated verbally or in writing on the video at the beginning of the video and a visible time and date indication on the video recording footage” (§5305) – a licensed distributor may not have another licensed testing laboratory sample or re-sample the same batch for regulatory compliance testing without the Bureau’s blessings, e.g. you must first making a written request to, and obtain, the Bureau’s written approval to re-sample the same batch (§5705(g).)
Unnecessary barrier to quality control leading to heightened chance for product recall?
No. 7 Unfettered Discretion To Audit Your Business 24/7 Without Notice
5037 Record Retention
Licensees shall keep and maintain all business records related to commercial cannabis activity for at least 7 years to and including (a)(9) “all other documents prepared or executed by an owner or their employees or assignees in connection with the licensed commercial cannabis business.”
(d) All records are subject to review by the Bureau anytime . . . . Prior notice by the Bureau to review records is not necessary. The Bureau may review records outside of the licensee’s standard daily business hours.”
– Something Unconstitutional About This, Right?
No. 8 Ultimate Veto Power Over Renewal Of Your Retail License
5019 Excessive Concentration
Even if you satisfy all licensing regulatory requirements on both the local and state levels – the Bureau maintains the exclusive discretion to deny you a license and/or deny renewal of your license if the Bureau determines that (a) “an excessive concentration exists in the [geographical] area” where you operate.
Excessive concentration applies when either of the following conditions exist: “(1) the ratio of licensees to population within the census tract or census division in which the applicant premises is located exceeds the ratio of licensees to population in the county in which the applicant premises is located . . . . (2) The ratio of retail licenses or microbusiness licenses to the population within the census tract, census division, or jurisdiction exceeds that allowable by local ordinance . . . .”
Should the Bureau deny your license on this basis, the burden is on the you, the applicant licensee, to (f) “provide reliable evidence establishing, to the satisfaction of the Bureau, that a denial of a license would unduly limit the development of the legal market so as to perpetuate the illegal market for cannabis goods.”
Unreasonable evidentiary burden and extraordinary cost on applicant licensee to conduct an economic field study on an illegal market that is, in effect, a legal impossibility to achieve under any circumstances.
The list goes on. While the California BCC has clearly satisfied its commitment to promulgate “robust state regulations” for the industry, one wonders about the state’s definition of robust.
An experienced corporate litigator having worked in both the private and government sectors, Attorney Robyn Ranke has taken a modern business approach to the cannabis industry and in working with cannabis business startups. Throughout her legal career, Robyn has represented a diverse base of business clientele in a variety of industries involving both complex and novel legal matters. Her diverse experience as a business litigator provides a valuable legal platform from which she is uniquely postured to address the regulatory hurdles, costly pitfalls, unique business transactions, and business litigation risks that confront California cannabis business owners today and into the future as state regulations continue to evolve.
VIDEO: NCIA Policy Webinar – Looking Ahead to 2019
As 2018 comes to a close, it’s a great time to sit down and reflect on the successes and challenges of 2018 for cannabis reform. We’re excited to present to you the first installment of our new quarterly Policy Webinar Series with NCIA’s Director of Government Relations Michael Correia, and Policy Council Chair Steve Fox. Watch the webinar and learn more about the successes our industry has had on Capitol Hill this year, the challenges that may be in store in 2019, and what you can do to take action.
Thanksgiving: NCIA Members Are The Reason For The Season
by Jeremy DePasquale, NCIA Membership Director
This Thanksgiving holiday, we wish to simply say THANK YOU for being a part of the next great American industry, and for taking this journey with us as we all create a responsible, legitimate cannabis industry together.
As the NCIA staff begins to wrap up the year 2018 and look ahead into 2019, not only is there so much to be thankful for in this year alone, but also in the last eight years since NCIA’s founding in 2010. Our membership has grown to over 1,700 member companies strong, and we’ve seen the industry evolve and mature at an impressive pace during this time.
NCIA’s executive director and co-founder Aaron Smith is “…deeply grateful for the hundreds of responsible cannabis businesses that have invested in the vital work needed to advance our industry through their membership with NCIA. Our members have made it possible to gain real traction and support in Congress over the last year and those who donated to our PAC have helped us elect an even better Congress going into 2019.”
The NCIA staff, now a vibrant team of twenty passionate and driven individuals, are focused on providing the best service and support to our ever-growing membership in the form of helpful member benefits, opportunities to get involved, and valuable networking opportunities for you and your business.
This year and every year I’m thankful for you, our members. I’m constantly amazed and inspired by your passion to continue making our industry the gold standard. NCIA is as strong as it is because of the support and engagement of our members, and we are working on new and exciting ways to keep you engaged. Here’s to 2019!
NCIA’s 2018 Post-Election Webinar
Watch this webinar recorded on Thursday, November 8, for NCIA’s recap of the midterm elections and what they mean for cannabis policy reform nationally.
Hear from representatives of the statewide cannabis campaigns in Michigan, Missouri, North Dakota, and Utah to find out what went right, what went wrong, and what happens next for regulators, businesses, and consumers. NCIA and the Marijuana Policy Project discussed the next states to watch and key federal legislation to follow in 2019.
What Measure 3 does is rather simple. It removes marijuana from the list of Schedule 1 Substances, and as a result, legalizes it for personal consumption, use, distribution, and possession for all North Dakotans over the age of 21. Additionally, it seals previous records so long as they were of age, did not distribute to minors, and were non-violent. Lastly, it legalizes hemp for full-scale agricultural production, a crop which per bushel is worth 9 to 11 times that of wheat depending on the commodity prices, while taxing both marijuana and hemp at an effective rate of between 8-14% (depending on your local city sales tax).
So, what does this really mean for the average North Dakotan and their community?
1. Starting December 6, adults will no longer be torn away from their families for simple possession, breaking apart families and creating dependents on the state rather than contributors. College students will no longer risk losing their student loans or the ability to ever find employment for daring to go to a party with friends.
2. Starting December 6, thousands, if not tens of thousands suffering from PTSD, depression, anxiety, and other conditions not covered by our medical marijuana law will be able to get proven life-saving medicine. As it stands, North Dakota politicians have in altering the medical bill denied veterans the best medicine for their condition indefinitely.
3. Starting December 6, tax revenue will increase as many new entrepreneurs will open up businesses and serve their communities. The illegal market for marijuana will cease to exist as shady drug dealers are replaced by reputable members of your community, and they will all pay taxes according to the fiscal impacts report released by the state of North Dakota.
4. Starting December 6t, farmers will be able to actually plan to grow hemp in North Dakota, and for 2019 will have access to a cash crop which outperforms wheat 10:1, if they choose to grow marijuana itself, the benefits are potentially even greater. Based on Colorado wholesale prices, 1 acre of marijuana could provide a farmer with more revenue than 400 acres of corn.
5. Starting January 6, records of non-violent marijuana offenders who did not deal to children will be sealed. This means we can start to reintegrate people into a society that has legalized marijuana, and allow them greater opportunities to find employment, procure student loans, or even find basic housing. As it sits, 170,000+ records need to be sealed, which means for every 4 people in ND there is roughly 1 record for marijuana hurting someone in your community.
What this doesn’t mean:
1. DUI’s will not be legal. Attorneys Alicia Dearn (multi-time award winner licensed to practice federal law in all 50 states), Nicholas Sarwark (Former Deputy Public Defender of Colorado), and Jordan Parker agree: a fair reading of Measure 3 does not legalize DUI.
2. Smoking in schools or in public will not be legal. When vaping and e-cigarettes were made legal, public smoking bans were ruled to apply to them. Similarly, marijuana smoking in public will have the existing bans applied.
3.) Crime will not rise. In states that have legalized, crime has stayed consistently lower than pre-legalization, and in many cases has dropped slightly.
Last, but not least, we would like to dispute the fact that this is “the most liberal marijuana law.” Measure 3 has received support from some of the strongest conservative voices in the state including:
1.) Tony Gehrig (Fargo City Commissioner and staunch conservative)
2.) Rick Becker (District 7 State Legislator which is in Bismarck, Republican)
3.) The North Dakota Liberty PAC (which has endorsed multiple republican candidates)
4.) And countless everyday North Dakota Republicans
Thank you for voting YES on Measure 3 in North Dakota this November 6!
Committee Blog: Child Resistant Requirements and Challenges
Child Resistant requirements for cannabis products is part of the regulatory structure for almost every state that has legalized marijuana for both medical and adult use. These requirements pose challenges to the entire supply chain from growers, manufacturers, dispensaries and customers.
Child resistant packaging is defined by the CPSC on a federal level. Most states refer to the CPSC guidelines for testing and certification of packages. There is no such thing as a child proof package. There is only a child resistant package as defined by the CPSC or other state cannabis regulators.
No one likes child resistant packaging – that’s a given. It is used because regulations require it. The cannabis industry is one of only a few that have to use this type of special packaging.
Start your search early in your development process to find the right package solution. Customization takes time with your manufacturer to design, develop and engineer to meet your branding and production needs. There are both single use and multi use child resistant packages. Ask your regulatory advisors which type of child resistant feature you need to use for each type of product.
Make sure your child resistant packaging has been tested and certified by an approved ASTM third party testing agency. Your packaging manufacturer should have the certificates from these outside agencies for you to have on file to support your regulatory compliance.
Costs for these certified child resistant packages are going to be more expensive than non child resistant options. Build these costs early into your total spend.
Our industry is going to push the design and engineering solutions for child resistant packaging to support the branding and marketing of all these great new products. Other issues such as sustainability and use of recycled materials will also be demanded by the cannabis industry. Manufacturers and suppliers of child resistant packaging will have to step up their game to support this new and exciting industry.
VIDEO: How Section 280E of the IRS Tax Code Burdens the Cannabis Industry
As tax season officially concludes, many cannabis businesses are feeling the burden of Section 280E, which can have the effect of taxing direct-to-plant businesses at a rate up to 3.5 times higher than other businesses. This unfair provision in the federal tax code affects the entire industry’s growth potential.
Watch this video below to learn more about Section 280E. Find out more about the solution: The Small Business Tax Equity Act which would allow for the fair and equal treatment of cannabis businesses.
In order to run a successful PR campaign or build your own PR department you will need a set of tools that you can pull from again and again. Here are key strategies you need to tackle in order to build a successful toolkit.
Define your story. Story telling is at the heart of every PR campaign and will drive everything you do. As you know, cannabis is on fire wth new products introduced everyday. The ones who tell their story in a compelling way are the ones that will stand out. Ask yourself: how is your company, product, or service better or different than any other on the market? Is your product the first of its kind? Are you a bootstrap entrepreneur? Have you been a cannabis activist since the 90s? Does your company help people in need? Your story will be the DNA that is weaved throughout your toolkit, from your elevator speech to speaking to media.
Develop a media list. This list should have the following components: reporters’ names, titles, contact information, what they cover on their “beat,” —and this one is important—what you have pitched them and when you have pitched them. This is your guide to keeping organized and remembering who you’ve contacted. Cannabis beats are starting to fragment now into silos like “business,” “products,” and “lifestyles.” Don’t make the mistake of sending a business-focused press release to a lifestyle reporter. It’ll be ignored. There are companies like Meltwaterthat provide a comprehensive and constantly updated media data base. While there is a yearly subscription, it will help save an immense amount of time since pulling together a media list is time intensive.
Develop a media kit. When sending out a press release or pitching media, you should provide them with everything they need to run your news. Include facts about company executives and leaders as well as their headshots, a company overview, press releases, and compelling photos and images of your product or service. The goal of a media kit is to make it easy for reporters to understand the who, what, why, when and how of your company and its unique story. If reporters are provided with all this information (most importantly high-quality images and photography) at their fingertips, your chances of coverage increase. Your media kit should be online, digital, and easy to access.
Develop a press release. This could be its own blog but for now here are the key steps. Keep it simple. Stick to the who, what, where, when and how. Write a compelling headline that helps your news stand out and write the body of the release in the inverted pyramid style, meaning, have your most important information in the lead paragraph then include less important news below. (Industry secret: Most reporters will stop reading after the first paragraph. Make it a good one!) Write your press release in Associated Press (AP) style. This is the language that reporters understand and will recognize when they see it. Be upfront and transparent, clear and concise. Reporters are too busy to dig for the news in your release so keeping it simple will help you get more coverage.
Distributing your press release. Using your media list, send one email at a time (never do a mass, BCC: pitch), customize your email and make it personal. The goal here is to build relationships with reporters, not spam them. It’s important to follow up after sending your release but don’t make yourself a pest as reporters are overworked, cover myriad beats, and are always under deadline. Always. If you want a broader approach distribute your press release through a wire service. The huge advantage here is the breadth of media outlets your press release will get in front of, however, you won’t get that personal touch point. Wire services can be expensive but depending on the scope of your news, entirely worth it.
Leverage social media. Again, this could be its own post, but the short take is: use your social media channels (Facebook, Twitter, Instagram, LinkedIn) to announce your news. Since a press release is written in a specific style for reporters, feel free to re-craft for your social audience in a friendlier, accessible voice. Reach out to reporters on Twitter with your news (with a big caveat: some do and some do not like to be pitched on social media and in public; do your research before tweeting a pitch). Lastly, when and if you get any coverage, you must post it on your social media pages. It’s a powerful way to increase your visibility, build credibility, and connect with new followers.
Carol Ruiz is co-founder and Partner of Higher Ground PR and Marketing. Janitor, construction crew clean up, waitress, documentary filmmaker, adjunct professor… just a few of the paths Carol Ruiz walked before finally finding what she would do for the rest of her life.
At these former gigs, as founder of NewGround PR & Marketing (a highly regarded agency in the real estate space), at Higher Ground, and at dinner tables the world over, Carol is a storyteller. Storytelling being the heart and soul of public relations, it’s no surprise that Carol was drawn to the world of PR.
2018 NATIONAL CANNABIS INDUSTRY FORECAST
Michelle Rutter, NCIA
by Michelle Rutter, NCIA Government Relations Manager
With the beginning of 2018, we start another election year. Multiple states in the midwest are running medical cannabis ballot initiatives, while Vermont is set to become the first state to legalize adult-use cannabis through the state legislature. In Washington, D.C., policy moves at a slower pace, but with Attorney General Jeff Sessions in office, it’s important to remain vigilant. Let’s take a look at what may happen in cannabis policy across the country:
MEDICAL CANNABIS POLICY
UTAH
The Utah Patients Coalition (UPC) is leading a 2018 ballot campaign to establish a medical cannabis program. The initiative seeks to protect terminally and seriously ill patients with specific debilitating medical conditions, including HIV/AIDS, PTSD, and chronic pain, among others. In addition, the initiative allows for caretakers to administer medical cannabis and would issue four types of licenses if passed: cultivation facilities, processing facilities, independent testing laboratories, and dispensaries.
The Chairman of the Senate Finance Committee, Orrin Hatch (R-UT) has introduced a medical cannabis research bill, and has even said on the Senate floor that medical cannabis can be an alternative to opioids. Passing the 2018 ballot initiative in his home state of Utah will be critical to furthering advocates’ work at the federal level.
A recent poll done by the Salt Lake Tribune found that 3 in 4 Utahns support legalizing medical cannabis. The campaign must collect 113,143 signatures from registered voters in order to qualify for the ballot. As of October 2017, the coalition had already garnered 20,000 signatures.
MISSOURI
A group called New Approach Missouri has formed and is in the process of collecting signatures for a proposed constitutional amendment to their state constitution that would legalize medical cannabis. The initiative would create a statewide system for production and sale of medical cannabis and provides for limited and regulated patient cultivation. Interestingly, the initiative levies a four percent retail tax, but all revenue in excess of the cost of regulating the medical cannabis program will go towards Missouri’s veterans.
New Approach Missouri must to collect 160,199 valid signatures from registered voters in order to be placed on the ballot. As of December 2017, the campaign had collected roughly 100,000 signatures. A poll done in 2015 showed that 85% of Missourians support implementing a medical cannabis program.
OKLAHOMA
Oklahomans for Health is the proponent of the upcoming state question SQ788, which would create a medical cannabis program. Obtaining a state-issued medical marijuana card would require a board-certified physician’s signature, though there are no specific qualifying conditions. The measure would enact a seven percent tax on marijuana sales, with revenue financing regulatory costs. Any surplus would be distributed: 75% to the General Fund to be used for education, and 25% to the Oklahoma State Department of Health to be used for drug and alcohol rehabilitation.
The initiative has already qualified, and will appear on the ballot in November 2018. Polling data is scarce, however, a 2013 poll showed that 71% of Oklahomans supported legalizing medical cannabis.
SOUTH DAKOTA
A group known as New Approach South Dakota is behind an effort to legalize medical cannabis in 2018. The group was also hoping to submit signatures to legalize adult-use cannabis, but was unsuccessful. The measure would set an excise tax on marijuana that would include a $50 per ounce tax on cannabis flower for buyers, and would have other taxes apply to buying immature plants and other parts of the cannabis plant.
In November 2017, New Approach South Dakota submitted roughly 15,000 signatures to qualify for the ballot- that’s just 1,000 more than required. The state hopes to review submitted ballot initiatives in the coming months.
ADULT-USE CANNABIS POLICY
MICHIGAN
The Coalition to Regulate Marijuana Like Alcohol has officially submitted ballot language to the State of Michigan that would legalize consumption and possession of marijuana for adults 21 and over in Michigan. The proposal enacts an excise tax on marijuana at the retail level in addition to the standard state sales tax and provides for state regulators to grant business licenses for cultivators, processors, testing facilities, secure transporters, retail stores and microbusinesses.
In November 2017, the Coalition to Regulate Marijuana Like Alcohol turned in more than 360,000 signatures to qualify for the ballot– that’s 100,000 signatures beyond the 252,000 required by the state. Polling done in early 2017 showed that 57% of Michiganders would support legalizing cannabis.
VERMONT
Vermont is poised to make history and become the first state to legalize adult-use cannabis through the state legislature in early 2018. In December 2017, Vermont House Speaker Mitzi Johnson (D) said, “It will be up for a vote in early January. I expect that it likely will pass in early January.”
The state came incredibly close to passing language that would have legalized adult-use cannabis back in 2017, however, the legislature was unable to make changes Governor Phil Scott (R) requested before the session ended. The Governor has since stated that he is “comfortable” with signing legalization legislation.
OHIO
The group that unsuccessfully ran a ballot initiative in 2015 to legalize cannabis in Ohio is making a comeback in 2018. In December 2017, a team announced that they will work to place a cannabis legalization measure on the ballot in 2018. Known as the Regulate Marijuana Like Alcohol Amendment, the measure would allow people over the age of 21 to purchase and use cannabis legally. The amendment would also create a taxed and regulated cultivation, processing, and sales system.
Valid signatures from 305,592 registered voters are required before July 4, 2018, in order to qualify the measure for the ballot.
NEW JERSEY
Unlike New Jersey’s Governor Chris Christie (R) , Governor-Elect Phil Murphy (D) is setting a positive tone on cannabis in the state. Murphy has advocated for legalization multiple times, and even made one of his campaign promises to legalize adult-use cannabis in his first 100 days in office.
Democrats in the state legislature have already introduced multiple bills to tax and regulate adult-use cannabis, predicted to be worth more than $1 billion in the state. The full legalization bill currently being considered is S3195, sponsored by state Senator Nicholas Scutari (D). Sen. Stephen Sweeney (D), the state senate’s president, has already promised to pass the bill within the first three months of Murphy’s administration.
Recent polling shows that over 60% of New Jersey residents support legalizing cannabis.
CANNABIS DECRIMINALIZATION
VIRGINIA
In November 2017, voters in Virginia elected Ralph Northam (D) as their next Governor. Northam made cannabis decriminalization a centerpiece of his gubernatorial campaign, and has even spoken about the hemp cultivation and the medical benefits of cannabis.
Virginia lawmakers considered but did not act on decriminalization legislation during the 2017 session. However, with the State Crime Commission conducting a study on the effects of decriminalization in the state at the request of the Republican Senate majority leader, advocates remain hopeful in 2018.
FEDERAL CANNABIS POLICY
While 2018 is shaping up to be a busy year for cannabis policy at the state level, things will likely move slowly in Washington, D.C. NCIA will be working to ensure language protecting medical cannabis patients (the Rohrabacher-Blumenauer amendment, formerly known as the Rohrabacher-Farr amendment) remains in federal law. NCIA will also be lobbying to expand that language to apply to adult use states (McClintock-Polis amendment) and to include a banking amendment that would allow cannabis businesses access to financial services (Heck amendment).
As leadership in both houses of Congress continue to negotiate the final version of the tax reform bill, there will be opportunities next year for Congress to make additions and changes on future individual tax legislation. NCIA will be looking at any possible avenues to have 280E legislation be included in future bills if the opportunity arises. Action on the cannabis banking bill is unlikely in 2018, however, NCIA will continue to advocate for a committee hearing, gather more cosponsors on HR 2215: The SAFE (Secure and Fair Enforcement) Banking Act, and work to identify a Republican lead sponsor for the bill in 2019.
NCIA will also be working to ensure that the Cole Memo remains in place. Attorney General Jeff Sessions has recently said that the Department of Justice will be reviewing current memos, and that “Guidance documents can be used to explain existing law… but they should not be used to change the law or to impose new standards to determine compliance with the law… This Department of Justice will not use guidance documents to circumvent the rule-making process, and we will proactively work to rescind existing guidance documents that go too far.” While Attorney General Sessions is very clearly personally opposed to cannabis, it’s important to note that personal feelings are not official Justice Department policy.
In addition, NCIA is working behind the scenes to educate the Trump Administration on cannabis policy, maintain the Cole Memo, protect cannabis patients and consumers, and make positive remarks regarding medical cannabis in 2018.
Partner Blog: Ohio’s Medical Marijuana Program Begins Taking Shape
by Thomas Rosenberger, Executive Director of NCIAO
More than a year after Ohio legalized medical marijuana, the first licenses have finally been awarded. The Ohio Department of Commerce ended months of speculation by announcing 12 level II cultivator license winners on November 3rd, and 12 level I cultivator license winners on November 30th.
These 24 winners are now responsible for growing the supply of medical marijuana Ohio’s patients will use, a population estimated to be in the hundreds of thousands. The medical marijuana market in Ohio is expected to be worth $300-400 million once it matures, making the limited number of licenses available immensely valuable.
While we now know who the 24 cultivators will be, Ohio’s medical marijuana program is still nine months away from its September 8th, 2018 deadline to be operational. Processing, dispensary and testing licenses have all yet to be awarded, and already controversy and lawsuits are threatening to derail and delay the program.
It’s a scenario we’ve seen repeatedly in other states such as Maryland, and a scenario for which the industry must work together to prevent in Ohio. The National Cannabis Industry Association of Ohio was formed in July to foster collaboration between members, promote best practices and to serve as the voice of the industry in Ohio.
We’ve spent the past 5 months advocating for the industry and working to provide feedback to state regulators on various aspects of the program. Moving forward, our priority will be on ensuring Ohio’s program meets its statutory deadlines and licensed cannabis businesses are able to begin serving Ohio’s patients by September 8th, 2018.
Now more than ever, it’s crucial the industry come together to ensure Ohio’s medical cannabis program is not delayed. Ohio’s patients have waited long enough for relief, and the industry has a responsibility to ensure they wait no longer.
NCIAO is the Ohio affiliate of the National Cannabis Industry Association, the nations only industry-led organization engaging in legislative efforts to expand and further legitimize the legal cannabis market in the U.S.
Member Blog: Customer Privacy – Keeping Personal Information Secure and Compliant
Despite the national trend toward legalization and a growing consensus of acceptance among Americans, privacy is still a chief concern among many legal cannabis consumers. And across the industry, no one bears the burden of these concerns more than cannabis retailers.
As a cannabis retailer, you’re pulled in several directions. First and foremost, you’re beholden to state reporting requirements; on the medical side, this means validating recommendation letters and patient identification and storing this information securely.
On the adult-use side, you’re torn between the need to collect certain customer information for marketing and sales purposes and the overwhelming fear and distrust from customers concerning their personal privacy.
It’s a delicate balancing act—and as requirements continue to evolve, retailers need a system in place that’s both functional and flexible.
Determining Your Dispensary’s Needs
As a cannabis retail owner, your number one priority is compliance. And when it comes to patient and customer privacy, you need to determine exactly what your state’s requirements are per your particular operation.
If you’re a medical dispensary, your data security needs are going to be much different from that of an adult-use retailer, and vice-versa. If you run a joint medical and adult-use operation, you’re going to have to find a solution that caters to both.
Legal states have widely disparate laws concerning patient/customer privacy and data collection. For example, Oregon passed legislation earlier this year making it illegal for recreational retailers to keep customer information—such as names, addresses and birthdates—on file for longer than 48 hours.
On the other hand, medical dispensaries need some sort of system for identifying patients and their doctor-certified cannabis recommendations, while both adult-use and medical operations need to be able to track sales to individuals to ensure transaction limits aren’t exceeded.
Finding a Solution That’s Right for You—and Your Customers
Even though state laws mandate cannabis sales tracking and reporting, state agencies are not providing dispensary owners the tools needed to perform these functions in the most efficient manner.
Some statewide reporting solutions offer point-of-sale software that retailers can choose to use. But, as we’ve seen with the ongoing kerfuffle that some states are experiencing with their chosen systems, these technologies are not always the most reliable.
In these instances of statewide system failures and security breaches, what becomes of your customers’ personal information?
Cannabis retailers need a solution that can be tailored to their particular operation—be it medical, adult-use or both—and that is flexible enough to keep up with constantly-changing privacy and information collecting requirements.
Additionally, dispensary owners need to know that in the event the state’s system crashes or is breached, they can record sales using excel spreadsheets or continue ringing sales if their retail software permits all while maintaining their customers’ privacy.
Gary Cohen leads Cova’s charge into the legal cannabis space by guiding the vision, strategic development, ‘go to market’ plans and culture. A Denver native, he recently moved back to establish Cova’s HQ there. While he joined Cova only a year ago, he was a successful business partner to Cova’s parent company since 2011.
Before joining Cova, Gary was a principal in over a dozen tech start-ups in the mobile communications industry ranging from small VC funded companies to Fortune 100 firms, including Onavo, which was later acquired by Facebook. In those companies he lead Sales, Marketing, Business Analytics and Market Expansions. He has also held a multitude of leadership roles with Verizon and AT&T for the first 15 years of the wireless industry.
Gary holds a Degree in Finance with a Masters in Marketing from the University of Colorado.
Member Blog: The Future of Michigan’s Cannabis Industry
In 2008, Michigan voters voted to legalize marijuana for medicinal use. Since 2008, dispensaries have been regulated for operation on a city or township level, and the city of Detroit was more welcoming to the cannabis industry than any other city in Michigan. On the busy street of 8 Mile in Detroit it seems like the neon green cross is on every other building for miles. The dispensaries have not been allowed to apply for a business license and so were not paying state taxes. This put the dispensaries in a gray area with the state. Legal or not, the cannabis industry in Michigan and especially in Detroit has been very lucrative.
In September of 2016 a bill was passed to grant licenses to dispensaries, cultivators, labs, extractors and transporters. Due to this bill, the Licensing and Regulatory Affairs (LARA) is accepting applications on December 15, 2017 for business licenses. The state passing a bill to accept licenses is great news for both the dispensaries and the state. The dispensaries will no longer have to look over their shoulder in fear of being shut down due to operating without a license and the state will receive tax revenue from the industry. However, the honeymoon came to an end when LARA also required dispensaries to shut down their operations effective on that same date of December 15, 2017 or risk being denied a business license. Even still with this plan the licenses will not be granted until the first quarter of 2018. This leaves a potential 3 month gap where the dispensaries will not be generating any revenue and more importantly patients can’t get their medication.
A number of dispensaries have shut their doors already in an attempt to curry favor with the state. Most dispensaries are remaining open to try and make as much revenue as they can before being out of business for an undetermined amount of time. While being out of commission for a few months will temporarily hurt Michigan’s cannabis industry, it is very important that if you are looking to re-open or start a cannabis operation that you fully understand the regulations. Unfortunately many cannabis operations may not be granted licenses and for some dispensaries December 15th will be their last day in business.
On September 21, 2017 the state did answer a big question that many in Michigan’s cannabis industry has been asking since 2016 when the state passed the bill to grant licenses: can one location have multiple licenses?
LARA made the decision that a location is allowed to operate multiple licenses if it meets the following criteria;
The Department authorizes the licenses to operate at the same location
The facility must have separate working areas, entrances, exits, point of sale operations and record keeping systems in place for each license.
The co-location is in keeping with local ordinance or zoning regulations.
The licensees comply with all local and state regulations for building inspection, fire safety and public health standards.
This is great news for Michigan’s cannabis businesses. This means a business can buy just one building and as long as it fits the above requirements their whole operation with multiple licenses can be ran out of one location instead of multiple locations. This will reduce cost and increase profits making the industry more attractive to businesses and investors.
As the December 15th deadline approaches, it is slowly being revealed and realized how the future of Michigan’s cannabis industry will look. As chaotic and uncertain Michigan’s cannabis industry is presently, I am excited about the direction it is headed and the possibilities and opportunities it can provide to my home state.
Please be prepared and don’t wait until the last minute to enter into this exciting new chapter of Michigan’s cannabis industry!
If you are to apply to any of the five licenses, please make sure you review House Bill 4209.
Kefentse Mandisa is a broker at Mandisa Risk Advisors.MRA is an insurance agency and risk management consulting group that provides superior service and products to their clients.
As a specialized insurance agency they provide services to the cannabis industry. This includes dispensaries, cultivators, processors, landlords and physicians to name a few.
MRA being narrowly focused on the industries they have a strong expertise, allows them to better serve their clients.
Cannabis Industry Sector: Information Technology and Software
NCIA Member Since: July 2016
Tell me a bit about your background and why you launched your company?
My name is Joel Milton and I am the co-founder and CEO of Baker. I’ve spent the last 8 years in the software industry, and have been working with my co-founder and Chief Product Officer, David Champion, for that entire time. Our third co-founder and CTO, Roger Obando, has been a developer for the past 20 years.
The three of us got interested in the cannabis industry in 2014 as adult use was rolling out in Colorado. We saw an opportunity to bring our years of software expertise to the industry as it was coming out of prohibition. We knew there would be a lot of issues specific to the industry, and we saw there were few entrepreneurs with technical backgrounds trying to tackle them.
What unique value does your company offer to the cannabis industry?
We proudly boast that we are on the dispensary’s team.
The Baker team at Representative Jared Polis’s fundraiser. Glenn McElfresh (Business Development) David Champion (Co-founder and CPO) and Roger Obando (Co-founder and CTO)
When we first started, we saw vendors come to the industry to take advantage of dispensaries. They had a misconstrued image of cannabis businesses: safes full of cash, lines out the door, and that businesses couldn’t stock shelves quickly enough. As a company that only serves the industry, we understand real issues like 280e, marketing restrictions, and constantly changing regulations. Due to these misconceptions, many of the early players were charging outrageous fees for basic services (like 10 cents for a text message vs. 1 cent for ours) because few companies were willing to work with dispensaries to begin with.
Additionally, everyone in this space was competing for the same end customer – trying to get them to their dispensary, download their app, go to their website, etc. We saw a dangerous “race to the bottom” on price, and realized there was an opportunity to help dispensaries engage with their customers directly.
Today, we help more than 500 dispensaries in 14 states build their brand, connect with customers, and generate more revenue. We are on the dispensary’s team and our goal is to make them have more successful businesses. We are a true business to business cannabis tech company, and we take pride in showing our clients the ROI they see by using our platform.
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?
We have been NCIA members for over a year now, and have made sure to contribute not just money but time as well. We send our regional reps to quarterly NCIA caucuses all over the country to keep a pulse on local and national initiatives to see where we can help. We also try to attend and sponsor cannabis events in the regions where we operate and beyond.
In the next month we will be attending events on both coasts, and at a few cities in between. We will also have a booth at the California Cannabis Business Conference (booth 204) if you will be there please swing by our booth or send us an email (marketing@trybaker.com) to set up a time!
We take pride in the professionalism we bring to the industry, and are constantly bringing a mainstream approach to the way we operate – from hiring people out of Fortune 100 firms into the industry, to building quality software products that’s on par with anything coming out of Silicon Valley. Our toolset is uniquely specific to help cannabis brands and retailers run better businesses. We have been approached by retailers in other industries, but our entire focus is on cannabis.
We also work with mainstream investors – many of whom are getting their first exposure to cannabis. It has been such a rewarding experience to promote the industry to influencers who can propel the industry forward with investment and leadership.
Lastly, we also are proud to have brought a lot of public and positive press to the industry. In the past year we have been featured in publications like Business Insider, Forbes, Fast Co, and dozens of others. We position ourselves as a professional company, creating jobs in our headquarters of Denver. We have 35 full-time employees and counting!
Our exposure in the mainstream media has helped millions of readers from around the country learn about cannabis in a more positive light. They can see that there is a large degree of professionalism in the industry and that it would not be a bad thing if it came to their backyard.
How do recent advances in technology, and how we use it, impact the growth and direction of the cannabis industry?
We believe this is a big industry and we have a responsibility to enhance the cannabis ecosystem – when companies cooperate, the sum is greater than its parts.
We are proud of the integrations we have with fellow members of NCIA. We work with POS companies like MJ Freeway, Green Bits, Treez, and Flowhub, as well as data companies like New Frontier (we contributed to their Report earlier this year).
Additionally, retailers across all industries have invested a lot in bringing their shopping experience into the digital age. Cannabis retail should be on par with other shopping experiences, and by providing beautiful, easy to use products, we can help make cannabis more accessible to a larger audience.
We are proud to bring retailers a modern experience that has been called the “shopify of cannabis.” We enjoy hearing stories from our clients about how our products have helped customers see that the stigmas around cannabis shopping are dissipating.
Baker at NCIA Lobby Days. Eli Sklarin (Director of Marketing) Carter Davidson (VP of Sales) Joel Milton (Co-founder and CEO) and Geoff Hamm (COO).
Why did you join NCIA? What’s the best part about being a member?
We are big believers in NCIA, it is an important group with a fantastic mission. I went to Lobby Days along with our COO, VP of Sales, and Director of Marketing. We were all impressed with how organized the experience was.
There is something special about getting the cannabis conversation started with influencers. Most staffers would be hesitant to bring it up, but if you go in-person and inspire confidence in the industry, you can watch the ball start rolling and it was very rewarding to be a part of that.
Highlights From NCIA’s 4th Annual Cannabis Business Summit & Expo
by Brooke Gilbert, NCIA Director of Events and Education
NCIA’s biggest and most influential event, the Cannabis Business Summit & Expo, wrapped up a few of weeks ago in Oakland, CA. We hope you had as much fun as we did! Did you miss out on attending, or would you like to relive your experience? Check out these event highlights below to get a glimpse into this year’s edition of the Cannabis Business Summit & Expo:
• Our largest event to date with 5000+ attendees.
• Keynote address from President Vicente Fox, the former president of Mexico, who spoke about the social injustices created by the war on drugs and the positive effects of global cannabis legalization. Listen to his full keynote here.
• Eighty thousand square feet of sold-out exhibit space featuring 250+ exhibitors, and 33 media and industry partners.
• Twenty hours of educational content over three days, featuring six workshops and 30 breakout sessions spread across five educational tracks and led by 150+ industry experts.
• Two plenary sessions, one featuring a discussion of the strategies to reform Internal Revenue Code Section 280E, and the second featuring a discussion of the results of a 16-month stakeholder-driven process that resulted in a comprehensive white paper detailing regulatory recommendations for packaging and labeling of cannabis products.
• On-site bookstore and book signings from current cannabis industry authors including John Hudak, Ewe Blesching, Chris Conrad, Steve DeAngelo, Jorge Cervantes, and Donna Shields.
• One hundred seventy-three press personnel from 65 outlets joined us for the three days, generating 1.4 billion impressions worldwide.
View the entire official photo album from the 4th Annual Cannabis Business Summit & Expo online here: TheCannabisIndustry.org/CBS17Blog
A big THANK YOU to all our attendees, volunteers, speakers, sponsors, exhibitors, and partners for contributing to another successful year at our Cannabis Business Summit & Expo.
Co-Founder, Solstice
Vertical farming has revolutionized the way we think about indoor agriculture. With the advancement of vertical racking, growers can amplify their harvests — sometimes multiplying their crops ten-fold — without having to invest in more square footage.
Andrew Myers is President and CEO of 
Martha Ostergar is the marketing content manager at RizePoint, a quality management software company that has helped top brands to digitally manage compliance, quality assurance, corporate social responsibility, and supplier quality management for over 20 years. Visit
James Schwartz RN, BSN, LNC, is an experienced medical legal consultant and CEO of 
Child Resistant requirements for cannabis products is part of the regulatory structure for almost every state that has legalized marijuana for both medical and adult use. These requirements pose challenges to the entire supply chain from growers, manufacturers, dispensaries and customers.
These 24 winners are now responsible for growing the supply of medical marijuana Ohio’s patients will use, a population estimated to be in the hundreds of thousands. The medical marijuana market in Ohio is expected to be worth $300-400 million once it matures, making the limited number of licenses available immensely valuable.
As a cannabis retail owner, your number one priority is compliance. And when it comes to patient and customer privacy, you need to determine exactly what your state’s requirements are per your particular operation.
Kefentse Mandisa is a broker at 
Baker Technologies
