NCIA’s Allied Associations Program Returns!

by Rachel Kurtz-McAlaine, NCIA’s Deputy Director of Public Policy

Like many of you, NCIA needed to pare down during the pandemic. This has been hard on everyone and we understand first hand the sacrifices. Thankfully cannabis was deemed essential throughout much of the country, which isn’t a surprise to any of us in the industry. But we know that our members still needed to adjust their operations and spend a lot of money trying to stay safe and in operation. Like you, we also needed to adjust.

During this time we weren’t able to oversee our Allied Associations Program, although we maintained our relationships and were able to include many of our Allied Associations and their valuable insight in our webinars. As the number of vaccinations continues to rise and things start opening up, we can’t help but feel hopeful in the future — not to mention a Senate Majority Leader committed to legalization. We want to thank everyone for their patience and announce that we are picking up where we left off on the Allied Associations Program.

What is the Allied Associations Program?

The Allied Associations Program is a network of cannabis trade associations from the local, state, national, and international level designed to harness our collective knowledge and work together to advance the cannabis industry. As the leading national cannabis industry trade association, we felt an obligation to the community to make sure cannabis businesses have strong trade associations to educate and represent them in every way, so we started this complimentary program for other cannabis trade associations.

While the focus of our lobbying efforts is at the federal level, we know what a huge impact state and local policies have on the day-to-day operations of our members. The Allied Associations Program allows us to keep updated about these important issues so we remain a valued resource. It also allows us to keep other associations informed on federal issues and utilize this extensive national network for important federal policy action items.

We encourage our members to learn more about the Allied Associations Program and check out the directory of participating associations. Being part of the Allied Associations Program means the association is providing educational opportunities for their staff and leadership, and networking with other cannabis trade associations from around the country, ensuring they are adding value for their members.

What does this mean for cannabis trade associations?

Current Allied Associations need to check their email for information on the next Allied Associations Program monthly call, and updating any information that has changed via the NCIA member portal. In addition to the return of monthly calls, Allied Associations should be aware of NCIA’s upcoming conferences: our Midwest Cannabis Business Conference in Detroit in September, and the Cannabis Business Summit in San Francisco in December. Allied Associations are visible at our events and important to the planning process.

Cannabis trade associations who would like to learn more about joining should check out our Allied Associations Program page and click on “learn more about the AAP” to get in touch with Rachel Kurtz-McAlaine, our Deputy Director of Public Policy who also manages the program.

Video: NCIA Today – April 9, 2021

NCIA Deputy Director of Communications Bethany Moore checks in with what’s going on across the country with the National Cannabis Industry Association’s membership, board, allies, and staff. Join us every Friday on Facebook for NCIA Today Live.

Video: NCIA Today – April 2, 2021

Senate to Consider SAFE Banking as the White House “Cleans” House

by Morgan Fox, NCIA’s Director of Media Relations

It has been quite a busy month in Washington when it comes to cannabis, but two of the more recent developments have garnered quite a bit of attention in the last couple of weeks and deserve a closer look.

First, a bipartisan group of lawmakers reintroduced the Secure and Fair Enforcement (SAFE) Banking Act in the U.S. Senate. This legislation, which was introduced by Sens. Jeff Merkley (D-OR) and Steve Daines (R-MT) along with 27 original cosponsors (up to 30 as of this writing), would protect banks and other financial institutions from federal prosecution simply for providing services to cannabis businesses that are operating in compliance with state laws.

This legislation was reintroduced in the House earlier this month to expected fanfare, understandable given that it has already passed in that chamber and continues to enjoy overwhelming support. In fact, it was the first-ever standalone cannabis policy reform legislation to ever be brought to a floor vote – and pass – in that chamber, and was approved twice more in pandemic relief legislation that unfortunately was not approved by the Senate.

This last fact has caused advocates to more carefully scrutinize the prospects of Senate passage. After this bill flew through the House late in 2019, its movement through the Senate quickly came into question after the Senate Banking Committee voiced concerns about the bill. There was also not much indication of priority by Senate leadership to call cannabis bills for committee hearings, which became even more stark with the onset of COVID-19 when almost every other issue took an immediate back seat. Concerns about Senate support were further compounded by the unfair and politically motivated attacks by some Republicans against Democrats for their inclusion of SAFE Banking language in coronavirus relief packages.

However, a new year brings new opportunities. With the contentious 2020 elections in the rearview mirror, and a renewed focus on economic recovery, supporting small businesses, and public safety, we need to use a different calculus when examining the chances of SAFE Banking in the Senate, and that is giving us plenty of reasons to be hopeful.

Let’s look at the numbers: there are currently 36 states with comprehensive medical or adult-use cannabis laws and either existing or soon-to-be-implemented regulated cannabis markets, all of which would directly benefit from this legislation. That means there are 72 senators whose constituents are being put in harm’s way or face limited business growth opportunities thanks to lack of access to financial services in the cannabis industry, including 25 Republicans (six of whom are already sponsors plus one GOP member from a non-regulated state). With just a few more Republican senators on board, this bill would theoretically be able to beat a filibuster, provided there was unanimous Democratic support.

Does this kind of representation guarantee all 72 of those lawmakers will support cannabis banking reform? Of course not. Legislators on both sides of the aisle frequently do not support legislation that is in their constituents’ best interests. However, it does greatly increase the chances of passage and provides additional incentives for hesitant senators.

In addition, Republican lawmakers have been more openly supportive of incremental reforms like the SAFE Banking Act than they have been of more comprehensive descheduling legislation that NCIA is working to pass, such as the MORE Act. In fact, some observers are confident that there was enough bipartisan support in the Senate to pass SAFE Banking in the last Congress, were it not for the pandemic and the obstruction of cannabis policy reforms by then-Senate Majority Leader Mitch McConnell.

The new landscape in the upper chamber has given us a lot of reasons to be optimistic about SAFE Banking this year. Democratic control of the Senate, tie-breaker voting power in the hands of pro-legalization Vice President Kamala Harris, the prioritization of cannabis policy reform by Senate Majority Leader Chuck Schumer and other members of Senate leadership, more Republican original cosponsors, and the increasing support of voters in conservative and swing states have given this legislation the best chances of being approved in the Senate since its first introduction.

The other federal cannabis story making headlines was the suspension, reassignment, and dismissal of a number of employees in the White House that was supposedly based at least in part on past cannabis consumption, despite recent guidance from the Office of Personnel Management which advised federal employers not to view past cannabis use as an automatic disqualifier for otherwise qualified job candidates. While the White House was quick to defend itself and point to other factors involved in individual cases, this move clearly sent the wrong message to employers across the country and called into question the Biden Administration’s stated support for at least marginal cannabis reforms.

Does this mean that Pres. Biden will veto comprehensive cannabis policy reform or other related legislation when it reaches his desk? Extremely doubtful. However, this unfortunate incident is indicative of the continuing stigma that cannabis consumers face, and an ongoing disconnect between public opinion, policy, and leadership.

This isn’t just a government employment issue, either; it is alive and (un)well in the private sector. Even in states where cannabis is legal for adults, many employers continue to enact strict anti-cannabis policies, limit their hiring pools, and punish qualified workers for off-duty cannabis consumption. This despite ample evidence that cannabis is not associated with decreases in productivity or increases in workplace injuries.

There has been some progress in recent years on this front. Recent court cases have finally begun siding with medical cannabis patients who were wrongfully terminated for using the medicine that works best for them, after years of ruling in favor of employers. More and more states are instituting employee protections, at least for patients. Yet as more states consider “banning the box” — a policy which prevents prospective employers from asking about past cannabis convictions – or institute laws against pre-employment drug screening as a condition of job offers, discrimination against cannabis consumers and people who work in the industry remains a major problem of not only policy, but culture. Ultimately, employers will need to get over the stigma and false assumptions they have about cannabis and develop better internal policies to match the growing reality of legal and accepted cannabis in the United States.

One thing is certain: as we get closer to ending prohibition, the complexity and nuance of this issue are sure to grow. Stay tuned for more updates as reform efforts continue to heat up in our nation’s capital!

USPS and Vaping Devices: What You Need To Know

by Madeline Grant, NCIA’s Government Relations Manager

The most recent omnibus that passed into law in December 2020 included a small provision related to vaping devices that could potentially have big implications.

The bill included language related to the Preventing Online Sales of E-Cigarettes to Children Act (the Act). The intent of the Act was to prevent underage smoking by applying the same safeguards already in place for cigarettes and smokeless tobacco products to the online sales of e-cigarettes — a mission we all wholeheartedly support. The Act also amends the Jenkins Act, which generally prohibits mailing of cigarettes to consumers through the United States Postal Service (USPS), to include Electronic Nicotine Delivery Systems (ENDS) and to subject them to the same mailability restrictions.

The Act defined ENDS as any electronic device that, through an aerosolized solution, delivers nicotine, flavor, or any other substance to the user inhaling from the device. The provisions also extend to any component, liquid, part, or accessory of an ENDS, regardless of whether sold separately from the device. Unfortunately, this definition is overly broad, and despite the name, an item can be interpreted to qualify as an ENDS without regard to whether it contains or is intended to be used to deliver nicotine — this means devices used for the vaporization of cannabis or hemp, essential oils, and other aromatics, or even water vaporizers used for babies.

What does this actually do?

Prohibits the mailing of non-nicotine devices to consumers through the USPS
Triggers burdensome and illogical compliance requirements for mailing through common carriers (i.e. requires the labeling of packages as containing nicotine, payment of state tobacco taxes, reporting of consumer data, and more, even if non-tobacco products)
Eliminates USPS exception for B2B mailings for non-nicotine devices, as the form requires tobacco product license information which non-nicotine businesses do not hold
As a result of this Act and subsequent confusion, many common carriers have changed their policies to ban shipments of any vaporization devices and components, nicotine or otherwise

How can you help?

Although the time to submit public comments has passed, you can still make a call to your congressional representative and senators to express your concerns. To find your elected officials you can visit congress.gov, type in your zip code, and this will bring you to your representative photo and information. From there call the Washington, D.C. office, state your name and address, to confirm you are a constituent and discuss the talking points below. Every constituent call can make a difference as staffers log all comments and concerns for the office.

When relaying your concerns, note that this broad interpretation of ENDS was not the intent of the legislation. It creates conflicts with existing regulations (e.g. FDA deeming rules, USPS mailability of hemp products, and state tax guidelines, etc.) and delivers significant unintended consequences.

Ultimately, it means consumers and patients may not be able to receive the state-legal, non-tobacco products they want and could significantly increase costs — all at a time when USPS is already struggling to bring stability to the agency.

Along with a fantastic informal coalition that formed to address this issue, NCIA has submitted comments that ask USPS to clarify that their interpretation of ENDS to not include these additional product categories that were not the intent of the original statute. As a united front, we will continue to educate congressional offices. We will continue to monitor any movement of this legislation and keep our members informed. Please reach out to your elected officials. Of course, if you have any questions please feel free to reach out to Madeline@TheCannabisIndustry.org.

Video: NCIA Today – March 19, 2021

Action Alert: Submit Comments to USPS and Congress about Mailing Vaping Products

It’s time to take action!

A new law could make it illegal for companies like yours to ship vaping products or components to customers — unless the United States Postal Service clarifies the rules.

What You Need To Know

On December 21, 2020, Congress passed the Consolidated Appropriations Act of 2021, which included the Preventing Online Sales of E-Cigarettes to Children Act (the Act). The intent of the Act was to prevent underage smoking by applying the same safeguards already in place for cigarettes and smokeless tobacco products to the online sales of e-cigarettes — a mission we all support. The Act amends the Jenkins Act, which generally prohibits mailing of cigarettes to consumers through the United States Postal Service (USPS), to include Electronic Nicotine Delivery Systems (ENDS) and to subject them to the same mailability restrictions.

We share Congress’s concerns regarding the tobacco and nicotine industries. That said, those concerns relate only to specific industries and they do not relate to Non-Nicotine Devices. The youth access problem identified by Congress is specific to certain nicotine products and not state-regulated hemp, cannabis or other products. This is clear when we look at the plain language of the ENDS definition and the legislative history of the Act. Applying the Act to Non-Nicotine Devices is not only illogical and contradictory, but it runs counter to the data-driven, science-backed approaches to youth prevention that make for good policy.

How You Can Take Action

Our friends at HeadCount’s Cannabis Voter Project want to help you make your voice heard! Text CANNA VAPE to 40649 or click the link below to find out how you can take action.

Learn more and take action here: https://p2a.co/924QhrE by Friday, March 19, 2021.

We have teamed up with Cannabis Voter Project to develop a convenient landing page that will allow you, your customers, and the rest of your network to easily submit comments to the USPS and their representatives in Congress: https://p2a.co/FyUcHVr

To maximize effectiveness, please consider the following steps:

In your email and social media posts, have a clear call to action (e.g., “Click here to send to your comments to Congress”)
If using Instagram, use the swipe up feature on Stories to send viewers to the landing page

Take action here https://p2a.co/924QhrE by Friday, March 19, 2021.

Video: NCIA Today Weekly Episode – March 5, 2021

Tune in LIVE on Facebook every Friday afternoon, or catch our now-weekly NCIA Today video updates to hear what’s new in cannabis policy reform and here at NCIA.

This week, we’re catching up on all the action that went down last month, including Senate confirmation hearings and how those could impact cannabis policy reform down the road.

Momentum Across The Nation – New Mexico, Virginia, and the District of Columbia

By Madeline Grant, NCIA’s Government Relations Manager

We may be barely three months into 2021, but we’ve seen a lot of action in state legislatures already! This week, let’s take a look at three significant state victories in their respective state legislatures: Virginia, New Mexico, and the District of Columbia.

Virginia

The Virginia legislature approved adult-use cannabis legalization this past Saturday in a historic vote. The state of Virginia specifically is a major achievement as it’s the first state in the South to embrace full cannabis legalization. The House passed the measure in a 48-43 vote, and the Senate approved it in a 20-19 vote. It is important to note that not a single Republican voted for the bill in either chamber, but regardless, it passed and this is a major victory for cannabis policy reform.

So, what’s next? Virginia is the 16th state to pass an adult-use cannabis legalization law. Along with Illinois and Vermont, Virginia is the third state to pass legalization to legalize, tax and regulate recreational cannabis through the state legislature.

The Conference Committee established a January 1, 2024 enactment date for the law — this is when regulated sales are scheduled to start. Additionally, lawmakers agreed to establish an independent agency, the Virginia Cannabis Control Authority, to oversee the regulations and govern the adult-use market in Virginia. Adults will be able to possess up to one ounce of marijuana and cultivate up to four plants per household without penalty. The remainder of the bill, which details regulatory and market structure social equity provisions, and repeals criminal penalties, is subject to a second review and vote by the assembly next year. Lawmakers were sure to address issues such as how to prevent large corporations from taking over the cannabis market, how to handle expungement of cannabis offenses, addressing social equity provisions, including prioritizing business licenses for individuals who have been disproportionately impacted by criminal enforcement, and more. This is a big move for Virginia and we are excited to keep a close eye.

New Mexico

Last Friday, Members of the New Mexico House of Representatives approved House Bill 12, to legalize and regulate the use, possession, cultivation, and retail sale of cannabis for adults. House Bill 12 will move to the Senate for further consideration. If passed, the current measure, approved by the House by a 39 to 31 vote, would allow adults to purchase at least two ounces of marijuana and cultivate up to six plants for personal use. Additionally, those convicted of an offense involving up to two ounces of marijuana possession would be eligible for automatic expungement, and those currently incarcerated for these offenses would be eligible for dismissal. House Bill 12 is one of the five competing adult-use legalization measures and specifically addresses social equity and community reinvestment provisions.

So, what’s next? We’ve seen a history of opposing chambers in New Mexico through cannabis legalization efforts in 2019 and 2020. The following day after the vote in the House, the Senate Tax, business Transportation Committee considered three additional measures to legalize and regulate cannabis retail sales. The lawmakers discussed the differences and similarities between the competing cannabis measures and noted the need to reach an agreement on differences before the end of the short legislative session, adjourning for the year on March 20, 2021. We will keep an eye on the Virginia state legislature and actions moving forward.

District of Columbia

We saw movement in D.C. when voters showed support at the ballot box by passing Initiative 71 in 2014, which allows adults in D.C. to grow, possess, and gift marijuana but not sell it. Since then, we’ve seen Congress prevent D.C. from allowing the sale of cannabis by attaching a provision to D.C.’s appropriations bill that precludes the District from using its fund to legalize or regulate cannabis sales. The District’s Mayor, Muriel Bowser, is pushing forward with legalization to legalize cannabis in the District. The Safe Cannabis Sales Act of 2021 was introduced last Friday. It would legalize recreational cannabis sales in the District for people 21 and up. The bill also takes steps to combat the toll cannabis criminalization has taken on communities of color, expunge some marijuana-related offenses from people’s criminal records, funnel sales tax revenue into helping get start-ups off the ground, and creates a new license category for microbusiness and third-party “social equity” delivery services. Additionally, more revenue from cannabis sales would go towards funding organizations in wards 7 and 8, which includes women and minority-owned small businesses opening or expanding restaurants; small grocery stores; and public school after-school programs. D.C. would require cannabis vendors to have their products tested by an independent facility to track their potency and check them for contaminants. Days after Mayor Bowser unveiled her reform proposal, Council Chairman Phil Mendelson introduced a cannabis regulation bill. When comparing the two pieces of legislation there are some key differences surrounding tax rate, revenue, licensing, and expungements. For more details, check out Washington City Paper’s article here.

What’s next? As I mentioned previously, since 2014, Congress has included language in a spending bill that prevents the District from spending any of its funds to create a tax-and-regulate system. Because of this, the District has been stalled in implementing the sale of cannabis. However, now that Democrats control both houses of Congress and therefore the appropriations committees, we are hopeful that this rider preventing cannabis sales in the nation’s capital could be lifted.

According to the latest Gallup poll, 68% percent of Americans support legalizing cannabis, which is up from last year’s 66 percent. With support for full cannabis legalization growing, it’s not particularly surprising to see reform happening in these states. We are watching these states closely as they inch towards cannabis legalization. We see different entities making efforts to reform outdated cannabis laws; such as governors, mayors, advocates, patients, lawmakers, and the overall cannabis community. Together, through dedication and commitment, we will continue to move the ball forward in states and at the federal level.

Please stay tuned for more updates and please make sure to check out NCIA’s State Policy Map where all state updates are housed. As we continue the good fight it’s important to count our victories.

Let the 117th Congress Begin

by Madeline Grant, NCIA’s Government Relations Manager

There is momentum brewing in Congress as we enter the 117th session. With Democrats controlling the House of Representatives, Senate, and White House, we certainly feel a hopeful shift in Washington that is exciting for the cannabis community. Last Congress, we saw various cannabis reform bills move through the legislative process on the House side, however, those efforts were then stalled in the Republican-controlled Senate. As we enter a new year, there’s also a new congressional dynamic and that gives us hope, for some different outcomes.

Last Friday, our Government Relations team met virtually with Senate Majority Leader Chuck Schumer (D-NY), Senate Finance Committee Chair Ron Wyden (D-OR), Sen. Cory Booker (D-NJ), and various stakeholders and advocates. These three key Senators are preparing to release new progressive, comprehensive cannabis legislation sometime in the early part of this year. The group discussed a wide variety of topics related to reform and focused primarily on cannabis justice and removing marijuana from the Controlled Substances Act. We, the National Cannabis Industry Association, are here to be a resource as Congress moves the ball forward and we’re proud to represent your business in Washington, D.C.

On February 1, the three Senators released a joint statement. They stated, “The war on drugs has been a war on people — particularly people of color. Ending the federal marijuana prohibition is necessary to right the wrongs of this failed war and end decades of harm inflicted on communities of color across the country. But that alone is not enough. As states continue to legalize marijuana, we must also enact measures that will lift up people who were unfairly targeted in the war on drugs.”

“With the launch of our DEI initiatives, NCIA is committed to ensuring that restorative justice and opportunities for Black and brown entrepreneurs in the burgeoning cannabis industry are at the center of our work,” said Tahir Johnson, NCIA’s Business Development Manager, and DEI Program Manager. “As the industry’s leading trade association, we’ve taken strides to ensure that not only our membership but also the Board of Directors and thought leadership is representative of that work. Through our policy and government relations work, we aim to make certain that social equity remains at the forefront of legislative conversations this session.”

Undoubtedly, there is a lot of work that needs to be done, and as a unified front, we can accomplish this successfully. As the government relations team discussed cannabis policy in a virtual meeting last Friday, we saw an open discussion for all organizations, advocates, and others. The Senators underscored the importance that we are united in our efforts to pursue reform.

Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations, attended the virtual meeting. She said, “The meeting with Leader Schumer and Senators Wyden and Booker was phenomenal. Beyond that, it was historic. I’m looking forward to working with those offices on issues like tax policy, regulations, and creating a diverse and equitable industry that allows businesses of all sizes to thrive. I’m also honored to work alongside the other stakeholders included on the call (and others) this session to pass exciting, groundbreaking legislation.”

The NCIA Government Relations team hopes to hear from you, our members, about any questions or concerns you have. As we continue to meet with lawmakers, we will keep you attuned to policy reform moving forward. If you haven’t checked out NCIA Connect, our online platform for networking with your fellow NCIA members, make sure you log in today to stay even more inspired, informed, and connected.

An Important Announcement About NCIA’s Lobby Days

While the NCIA team was hoping to welcome all of our members to Washington, D.C. this spring for our 10th Annual Cannabis Industry Lobby Days, we have made the difficult yet necessary decision of postponing the event until further notice due to the COVID-19 pandemic.

This was not a decision made lightly, as our annual fly-in is an integral part of our government relations efforts on Capitol Hill. However, with congressional buildings being closed to the public, new virus variants, and continued community spread, we believe this is the smartest and safest decision for our members, elected officials, and their staff.

That being said, the NCIA government relations team continues to virtually lobby and “meet” with various stakeholders, coalitions, and congressional personnel to further cannabis policy reform every day, thanks to the financial support of our members. We are working hard to reintroduce priority bills, include the SAFE Banking Act in the next pandemic relief package, and are helping to craft new, exciting, progressive legislation that focuses on de-scheduling cannabis and creating a thriving, diverse, and equitable industry.

Stay tuned via our newsletter, website, and NCIA Connect to learn more about NCIA’s Lobby Days and what’s next. We can’t wait to host all of you back in our nation’s capital, but in the meantime, please stay safe and stay healthy!

Video: NCIA Today – 117th Congress, New Scorecard, DEIC Update, and more!

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

From the top, Bethany discusses the “cautious optimism” bouncing around the D.C. Government Relations office, as the 117th Congress begins to get to work with GR Director, Mike Correia.

Check out how your member of Congress rated on our Congressional Scorecard, on our website.

We check in with Mike Lumoto, Committee Organizer for NCIA’s Diversity, Equity, Inclusion Committee on the incredible growth they saw in 2020 and the plans taking off in the new year.

Don’t forget to download the new NCIA Mobile App and never miss the latest cannabis news.

Member Blog: Is 2021 the Year that Brings Normalcy to Cannabis?

by Jimmy Young, founder of Pro Cannabis Media

Thanks to Democracy and the grassroots efforts of cannabis advocates from coast to coast, there are now 15 holes in the cannabis prohibition wall (legal states), and 36 cracks (medicinal programs). So when will that wall come down and how fast? More importantly, what will the industry look like when the dust settles?

Over the past few weeks, cannabis media pundits from all over the world have chimed in with their predictions for 2021. (Some even pontificated before knowing the results of the Georgia State runoffs in the Senate.)

With President Joe Biden now in the White House and the Democrats controlling both houses of Congress, cannabis advocates are wondering when, and if, we will see federal legalization of cannabis in 2021. Will it succeed or will our dutifully elected politicians do something that will derail the will of the people during this Green Wave of reform?

Already, a Republican congressman from Florida, Greg Steube, decided to file the first draft of reform to a committee that will move cannabis from schedule 1 to schedule 3 on the Department of Justice list of “controlled substances.”

But for many, this does not go far enough. I recently interviewed the Media Relations Director of NCIA, Morgan Fox, who told me, “It’s not something the NCIA or other Cannabis advocacy groups is going to support….we are all focused on de-scheduling, (this draft) it just doesn’t go far enough.”

So what position are lobbyists in Washington, D.C. taking now that their arguments for reform may find a more supportive group to talk to? What is the best thing for the industry? What’s the right thing to do?

I also interviewed Michael Correia, the Director of Government Relations for NCIA, who explained that the target should be for full legalization, but that at the heart of the issue, there is something more important that needs to be dealt with – racism. In my interview with him, he said, “…let’s just stop arresting people for this. Stop arresting people in this war on drugs so no one’s lives are ruined because they’re consuming a natural plant, that 30 plus states have said, Hey, we’re okay with this. There shouldn’t be these differences. So just stopping, arresting these people, and then worrying about what’s the next step?”

Why does he feel so strongly about this? The evidence is overwhelming that law enforcement has used simple possession as a profiling tool to fill our privately run prisons with black and brown people over mere cannabis possession. “The vast majority of these arrests (92%) were for simple possession of the drug. 500,395 of [the 545,602] arrested for cannabis [crimes] were simply found [to be] in possession of cannabis.”

So are you convinced now that cannabis, a plant, is not illegal because it is considered a drug, but rather because of a racist system and the fact it can be used as a means to profile and jail black and brown people? Do you want more evidence of the racial bias in cannabis arrests? Check out this 2020 report on the racial makeup of those simple possession “crimes.”

“A recent report from the ACLU looked at data from 2018 and found that black people were 3.6 times more likely to be arrested for cannabis possession than white people.

This is despite both groups use cannabis at similar rates.

Even in western states with recreational cannabis laws, black people were 1.5-1.8% more likely to be arrested for having cannabis.” Emily Earlenbaugh, Forbes

So what’s the 2021 plan for lobbyists, policymakers, and elected officials? What exactly does this industry look like if one of the following changes happens in the next year or two?

Cole Memo reinstated
SAFE Banking
Rescheduling
De-scheduling
The MORE Act
Science and Research Grants

Each one of those changes is not only positive for this young industry but will have a ripple effect that will impact other industries. The trickle-down effect for any of these changes being implemented will impact the private prison system, banking, and financial markets, big alcohol, big pharma, social equity, expungement of past convictions, interstate commerce, and the international markets.

The cannabis lobbyists know that with Democrats in charge of the direction of the Congress over the next two years, this is their opportunity for serious reform. After all, the House passed a legalization bill, the MORE Act, in December of 2020. In 2019, the previous year, the SAFE Banking Act was also approved by the House, but neither even got to the floor of the Senate because of the then-Majority Leader Mitch McConnell’s anti-marijuana stance.

2021 is now upon us, and “grown-ups are now back in charge in D.C.” However, many advocates I’ve talked with are understandably wary and skeptical about the Federal Government dictating governance of this industry if cannabis is federally legalized and falls under the control of the alcohol and Beverage Commission.

Most cannabis advocates can at least agree that cannabis should be removed from the schedule that was created by the Controlled Substances Act in 1971. This change alone would allow banks to do business with the cannabis industry and allow for the removal of the restrictive 280E tax code that has limited the profit margins of already existing businesses.

Here are some links to other predictions from leading media sources about what cannabis reform democratic control of Congress may lead to:

Marijuana Moment: What The New Democratic-Controlled Senate Means For Federal Marijuana Legalization In 2021

Politico: Democratic-led Senate could clear a path to marijuana legalization

Forbes: Democrats Win The Senate: The Impact On Marijuana Policy

So after reading all this information, here’s what I think will happen over the next four years.

First Year: Cannabis gets removed from the Controlled Substances Act schedule

Second Year: Decriminalization and expungement of cannabis possession crimes with banking reform

Third Year: Interstate commerce

Fourth Year: Full Federal legalization, international export markets open

It’s 2021, the year of the cannabis plant as a political issue is here and reform is as pungent as the odor of this amazing plant. Stay tuned, this will be an ongoing theme in D.C. politics this year as we all hopefully witness another chapter in the historic end to prohibition.

Jimmy Young is the founder of Pro Cannabis Media. An Emmy Award-winning talk show host from New England, and a resident of Massachusetts who holds a medical card after 4 major surgeries in 22 years.

The founder of Pro Cannabis Media is the current host of In The Weeds with Jimmy Young, a weekly podcast distributed over the CLNSMedia.com, site, iTunes, Spotify, Googlecast among others. In July of 2019, he teamed up with the founder of Cannabis.net, Curt Dalton, to host a two hour live monthly Weed Talk Show where the two Massachusetts natives have interviewed some of the biggest names in Cannabis, like Steve DeAngelo, Bruce Linton, and Tommy Chong. Locally local cannabis advocates and representatives from the medical establishment in the Bay State have all appeared on that show that is now being distributed nationwide. Young also produces a weekly news video, called News Dabs, highlighting and commenting on the biggest stories around the world in the emerging cannabis universe.

NCIA Welcomes New and Returning Members to Board of Directors

NCIA, the country’s largest cannabis trade association and industry advocacy organization, will be seating its newly-appointed Board of Directors today.

The board also conducted its 2021 officers election today.

Khurshid Khoja and Kris Krane were re-elected as the board’s Chair and Vice Chair, respectively.

Narbe Alexandrian was re-elected as Treasurer and Chris Jackson was elected to the position of Secretary.

Henry Wykowski will continue to serve as the board’s General Counsel.

The organization’s Nominating Committee brought on four new board members.

Seun Adedeji is the CEO of multi-state cannabis retailer Elev8 Cannabis with operations in Massachusetts and Oregon, and the youngest African-American dispensary owner in the United States.

Kimberly Cargile is the CEO of A Therapeutic Alternative, a California-based cannabis retailer, and a long-time advocate for medical cannabis patients.

Rebecca Colett is the CEO of Calyxeum, a licensed cannabis cultivation company based in Michigan, and has years of experience in the legal cannabis industry championing minority inclusion, veteran access programs and workforce development.

Cody Stross is the CEO of Northern Emeralds, a cannabis cultivator based in Northern California, and has significant experience in many areas of the cannabis industry as well as being a founding member of a cannabis trade association representing businesses in the Emerald Triangle.

Two incumbent Board members were also re-elected for another term: Kris Krane, current vice-chair of NCIA’s Board of Directors, and president and co-founder of 4Front Ventures; and Taylor West, partner at Heart + Mind Media.

“We are pleased to welcome these new and returning Board members for the next term as we enter what is arguably the most exciting time for cannabis policy reform in history,” said Aaron Smith, co-founder and chief executive officer of the National Cannabis Industry Association. “With their invaluable contributions and insight, NCIA will be well-positioned to improve the legal and regulatory landscape for the cannabis industry, lead it into new frontiers, and continue to be the most broadly representative proponent of cannabis businesses in the United States.”

The full list of Board members and their bios is available here.

Outgoing members include founding board members Troy Dayton and Etienne Fontan as well as Aaron Justis and Mark Passerini.

“On behalf of myself and the rest of the NCIA community, I want to extend my heartfelt gratitude to the Board members who are relinquishing their positions for their unwavering support of our efforts over the years to end prohibition and help the cannabis industry and its association grow,” said Smith. “We look forward to continuing our work with them in many capacities during this time of unprecedented opportunity.”

Committee Blog: Trust In Cannabis – Why It Matters More Now Than Ever

by Tara Coomans, CEO of Avaans Public Relations
Member of NCIA’s Marketing and Advertising Committee

As a country, the U.S. is experiencing what can best be described as the “age of distrust.” While public distrust in institutions has been escalating for at least a decade, according to the annual Edelman Trust Barometer which has tracked trust in media, governments, businesses, and nonprofits since 2000. Social unrest and a global pandemic have escalated this distrust. Never has the public eyed institutions or businesses with such suspicion.

Meanwhile, in our industry, the vaping crisis of summer 2019 hit our industry below the belt, aided by some bad actors knowingly flooding the illicit market with products that couldn’t meet stringent state testing. That crisis created a crisis of confidence in the overall cannabis industry-leading it into a bleak period which was only partially buoyed by the declaration that dispensaries were considered “essential businesses” during the COVID-19 pandemic, pro-cannabis outcomes in both voting booths and Congress, many thanks to NCIA’s national and local efforts. By supporting NCIA, you’re signaling industry commitment and that you value growing trust within the industry.

Now, against the national backdrop of distrust and a COVID-19 vaccine that offers a glimmer of hope, it’s time to evaluate ourselves and our industry’s actions. Never has it been more crucial for all brands, but particularly our industry, to lean into actions and communications which consistently and powerfully earn the trust of investors and consumers. As an industry, we’re on an important precipice, what we do next will either ensure our credibility or tarnish it for years to come.

Consumers (and therefore investors) are looking at brands in a more holistic manner. Trust will be the single most valuable brand attribute.

Trust is defined on two spectrums: competence and ethics.

For CEOs, CMO’s, and experts in our industry, the time is now to act and communicate from a place of authentically aligned communications. This alignment will require hyper levels of empathy and a constant pulse on the state of affairs affecting your customers. Consumer behavior is in flux now.

The COVID-19 pandemic has changed consumers and now is the time for brands to align. According to the Edelman Barometer special report, Brands Amidst Crisis:

The role of brands in reflecting the consumer’s desire to be viewed as a tastemaker or trendsetter has decreased 9%
Up 38% is spending time with family
86% of consumers expect brands to solve both societal and personal problems, including proper treatment of employees and making product in a domestic market
The only values more important than trust to consumers are price and quality

Because consumer behavior is in flux, it’s never been more important to ensure internal and external values and communications align. Ironically, ensuring alignment supports the flexibility needed to respond quickly to changing behaviors or unexpected upheaval.

Aligned communications means we act internally and externally in a consistent and emotionally intelligent manner that earns trust. It’s not just good for our industry, trust in brands has very real bottom-line implications including increased sales, increased investor opportunities, and reduced customer acquisition costs. In fact, according to Edelman Trust Barometer, high trust consumers have 75% more brand loyalty.

Outstanding packaging and even quality products are the minimum expectations for today’s brands. But even those choices come under scrutiny from consumers if they don’t mirror consumer expectations and lifestyle. Therefore, earning trust starts at the very beginning. The earliest choices are powerful signals to consumers about brand values.

It isn’t enough to simply sponsor a campaign or align with a social movement. While those choices can be powerful quivers in your trust arsenal, it feels and sounds hollow when the brand is suddenly thrusting itself into a conversation without looking at itself first. Consumers are increasingly aware of “trust washing.”

92% of employees expect their employer’s CEO to speak up for issues ranging from income inequality to diversity and training for future jobs. An aligned trust-based strategy starts on the inside. Take a solid look at the ethos and ethics within your own company.

What are your company’s values?
What do you stand for?
How do you signal trust internally and how do you reward it?
Does your internal communication stand for your values?

The reason this internal step is critical is no matter what, your brand ethos is distilled into consumer interactions and communication, whether those communications are with dispensary workers or directly to the consumer, the experience will always stay with the brand. Imagine a dispensary worker making recommendations to a new-to-cannabis buyer, naturally, the dispensary worker has a huge amount of influence on the consumer’s impression of a new brand. And new-to-cannabis buyers are most likely to be loyal to their first brand, assuming the product meets expectations.

Personal experience is the number one way to build trust with consumers. 59% of customers say personal experience matters the most.

What consumer interactions signal trust?
How do you manage poor reviews?
How do you handle customer inquiries?
How does your owned media reflect not only your brand values but those of your customers?

Personal experience is absolutely about product experience and brand interactions. Brand interactions at events will take on more importance in cannabis. Consumers will want to engage in an experiential way with cannabis brands and it won’t be at cannabis events exclusively, consumers will expect to see cannabis brands in all the same places they see alcohol brands, even if sales and sampling aren’t available, which means experiences will need to be multi-sensory and strongly personal. Choose your experiences carefully based on your brand audience and ethos.

Earned media is second only to personal experience incredible trust-building. During the COVID-19 pandemic, trust in publications increased by 7%. Brands should look for opportunities in earned media that reflect their values. Branded content is another area where brands can use the credibility of publications.

Experts are still considered credible sources (52%) and they far surpass celebrities (35%) and influencers (36%). As you consider brand strategies in 2021, take a careful look at who you’re leveraging and what role they play. Choose your experts carefully and ensure they are fully vetted. NCIA’s Marketing and Advertising Committee is developing an “experts directory” of carefully vetted industry professionals, this will be a key resource not only to event organizers, but CEOs and CMOs looking for credible, authentic experts.

Our industry has so much to offer consumers, we provide very real opportunities for consumers to enhance their lives. We have been active on numerous social justice fronts from the very beginning. We may come from a historical place of rebellion, but often, even that rebellion came from a place of empathy and not just income. Consumers today are responding to companies who double down on trust and an aligned brand value system. There’s every reason to think the cannabis industry can do this better than anyone. Together, let’s lean into our values and seed trust not just in our companies, but in our industry.

*All statistics come from Edelman Trust Barometer 2020, unless otherwise noted.

Tara Coomans is the CEO of Avaans Media (formerly known as Primo PR), which has been working with hemp and THC brands and services since 2015 from startup through IPO. Founded in 2008, Avaans Media brings a digitally forward and purpose-driven perspective to public relations. Avaans Media is based in Los Angeles with clients and team members distributed around the country including Washington D.C., New York and Denver.

Coomans is on NCIA’s Marketing & Advertising (MAC) committee and leads the MAC Experts Directory subcommittee for 2021. Coomans is a frequent writer and speaker on public relations, marketing, and social media topics.

What To Watch: The Executive Branch Edition

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

Last week, I wrote about what to expect during the 117th Congress. This week, I want to highlight the incoming Biden Administration, and the various agencies and Cabinet officials that could affect cannabis policy going forward over the next four years.

The tradition of the Cabinet dates back to the beginnings of the Presidency itself. Established in Article II, Section 2, of the Constitution, the Cabinet’s role is to advise the President on any subject he may require relating to the duties of each member’s respective office. The Cabinet includes the Vice President and the heads of 15 executive departments — the Secretaries of Agriculture, Commerce, Defense, Education, Energy, Health and Human Services, Homeland Security, Housing and Urban Development, Interior, Labor, State, Transportation, Treasury, and Veterans Affairs, as well as the Attorney General.

Here’s my breakdown of the top three agencies I’ll be watching:

Treasury Department

In February 2014, the Treasury Department issued guidance to clarify Bank Secrecy Act (BSA) expectations for financial institutions seeking to provide services to marijuana-related businesses. However, over the last seven years, the policy landscape surrounding cannabis has changed dramatically — at the time this guidance was issued, only Colorado and Washington had legalized adult-use cannabis. Now, there are 15 states plus the District of Columbia that allow for the adult-use of cannabis and 36 states with medical cannabis laws.

Incoming President Biden has nominated former Federal Reserve Chairwoman Janet Yellen for the post of Treasury Secretary. Though her position on cannabis is relatively unknown, it’s definitely possible that this guidance could be updated or expanded. Additionally, if the SAFE Banking Act is passed by Congress, the Treasury Department would then be in charge of ensuring that the implementation of that legislation goes smoothly.

Department of Justice (DoJ)

Here’s the big one everyone in cannabis will be watching: the Department of Justice. President Biden has selected Merrick Garland as his nominee for Attorney General, and everyone seems to be wondering the same thing: could there be a new “Garland Memo” ala the Cole Memo?

If you’ll remember, during the Obama Administration in 2013, the Department of Justice issued the Cole Memo, which outlined enforcement priorities for the Department as states were beginning to set their own cannabis policies. Under the Trump Administration, that memo was rescinded in January 2018 by then-Attorney General, Jeff Sessions.

It’s certainly possible that a Garland DoJ could unveil a new cannabis-related memo. Outside of enforcement priorities, the Department could also direct other agencies to reevaluate their policies around cannabis and housing, immigration, and the armed forces.

Small Business Administration (SBA)

In 2018, the Small Business Administration (SBA) came out with a notice to all employees and lenders that updated their policies surrounding marijuana businesses. They stated, “Because federal law prohibits the distribution and sale of marijuana, financial transactions involving a marijuana-related business would generally involve funds derived from illegal activity. Therefore, businesses that derive revenue from marijuana-related activities or that support the end-use of marijuana may be ineligible for SBA financial assistance.” They then went on to outline the ineligibility of direct and indirect marijuana businesses, as well as hemp-related businesses (this was pre-2018 Farm Bill) to participate in SBA programs.

This could all change under a Biden Administration, however. The President-elect has tapped Isabel Guzman as Small Business Administrator — she currently serves as the director of California’s Office of the Small Business Advocate. While her position on marijuana is unknown, I’m incredibly hopeful for reform under Guzman — her familiarity with small businesses in California means she is surely well informed on the struggles the cannabis industry faces.

These are just a few of the agencies that I’m watching, but there are many others to keep an eye on: the Veterans Administration, Health and Human Services, and FDA, just to name a few. And, as always, NCIA will be working to advance positive reforms within the executive branch at every opportunity.

Make sure you’re subscribed to NCIA’s CannaBusiness Leader to stay up to date on the latest and find me over on NCIA Connect with any questions or feedback!

NCIA Condemns Recent Insurrection and Some GOP Lawmakers’ Attempts to Undermine American Democracy

The National Cannabis Industry Association condemns the actions of violent extremists last week in their efforts to undermine a free and fair election, fomented by the divisive and patently false rhetoric of the President and numerous elected officials.

We are still trying to process the madness we saw unfold mere steps from our office on Capitol Hill. Like many Americans, we watched this attempted coup in horror and worried about the future of our country, our Constitution, and the safety of our loved ones and fellow staff.

We mourn the lives lost in this violent attack brought to our nation’s capital. We also hope this entirely avoidable tragedy will serve as the day of reckoning for all those who for too long have sought to divide our nation in order to serve their own political interests and those who have enabled them.

Just as appalling was the disparity in the reaction from law enforcement to a horde of violent seditionists, which included no small number of avowed white supremacists, when compared to the treatment of people around the country speaking out for racial justice. While we don’t condone the wanton use of police force against demonstrators, there is simply no comparison between peaceful protests against ongoing systemic racism and police brutality and an armed insurrection against our democracy. The stark contrast in how these groups have been treated by authorities in the months and years leading up to the deadly storming of the Capitol is a clear indicator of the racial bias that persists in the United States. NCIA stands committed against this and all other forms of racial discrimination.

Make no mistake: we are no strangers to dissatisfaction with our government, and intense, furious opposition to its actions. The pain and injustice inflicted upon cannabis consumers and providers, not to mention their families and communities, is incalculable and ongoing. But we are an organization that represents an industry — and a movement — built on peaceful protest, civil disobedience, and cooperative nonpartisan efforts to change our laws and policies through an open and democratic system governed by the rule of law. Those who use misinformation to undermine confidence in our democratic processes or attempt to subvert them, such as the President and certain Republican lawmakers have done by spreading lies about our election for months, have no legitimate role in our republic.

There is no place in our country for what we saw last Wednesday. As a nation, we can — and must — do better to respect each other, settle our differences, and not succumb to mob mentality. We cannot allow our actions to be dictated by the thirst for power or the passions of the moment if our democracy and our freedom are to survive.

Member Blog: A Whole New World On Zoom – 5 Tips To Look And Sound Like A Pro

by Jimmy Young, founder of Pro Cannabis Media

2020 will be remembered as “unprecedented.” A raging pandemic, a divided country resulting in a contentious election, an economy on the brink, but for cannabis, it was huge. The MORE Act and the SAFE Banking Act pass the U.S. House of Representatives, and the end of prohibition of cannabis is becoming more of a reality than a dream. Throw in five more states using the ballot box to legalize adult use of cannabis, and while 2020 was a nightmare for many, for cannabis, it was monumental. However, for many of you in the now “essential” cannabis industry, there was one development that many in the cannabis industry had to deal with, a fear of being on ZOOM on a daily basis!

Whether you are running educational webinars as part of your marketing efforts to stay in touch with your clientele or creating videos that allow you to control that message to your database. You have probably spent more time on camera over the past 10 months than you ever expected. As humans we are all our own toughest critics when it comes to hearing our voices recorded. (Do I sound like that? I thought I had a good voice. Yuk!)

When it comes to seeing ourselves on camera, we think we all look 10 pounds heavier. Or is it just a bad hair day? Or is the whole world looking at that minuscule zit on my face? The toughest part of getting over a fear of anything is facing it, especially when it’s facing your own image!

The cannabis industry, like so many businesses in the U.S., have had to adapt to a new way of doing business from sales calls externally to communicating with staff internally. The water cooler break for some office politics chit chat, is a thing of the past. Now that our regular commutes have moved from 30 minutes to 3 seconds, working from home has become the norm. That means you better get used to seeing yourself on camera.

So here are a few basic tips for those of you who are regular users of ZOOM, Facetime, Facebook Live, YouTube Live, Stream Yard, Google Hangouts, or WebEx from Cisco.

First some basic lessons about “face-to-face” communication. Eye contact is pretty important, isn’t it? It’s a sign of respect. It’s the single most important connection we can make without touching each other, and since that’s been banned thanks to the “vid,” maintaining eye contact with that little camera is paramount,

When you were younger, did you ever play the staring game? Look into a friend’s eyes. Try to maintain eye contact for as long as you can. Why? When you are on camera, as soon as you avert your eyes, or look at something else, you break your connection with the person you are talking to. This is true whether you are talking on ZOOM or talking to someone face to face.

Tip #1

Make sure your camera is at eye level. Put your device on a shelf, or prop up your laptop on books. In Hollywood, they shoot actors low to high in order to give more of a powerful presence on screen. (Tom Cruise is 5’7” but always appears taller on screen because of this!)

Tip #2

Don’t position your camera with a bright window behind you! That’s called backlighting. Since you are the subject on camera, you should have the most light on you. This is especially true if you have black or brown skin. Get a ring light or a really bright desk lamp and position it behind the camera facing you.

Tip #3

Sound. There are some really good built-in microphones in Apple computers, but even the microphone attached to an external set of earbuds is better than their built-in microphones. High ceilings are a nightmare for sound, empty rooms with no carpet or furniture will make your sound hollow and can create an echo. So find a carpeted room with furniture, and better yet, invest in an external microphone.

Tip #4

The rule of thirds. In any introductory film or graphics course, one of the first things you learn is how to frame your subjects. Each frame in a horizontal 16:9 aspect ratio is divided into 9 cells. Where the vertical and horizontal lines meet is where your focal points should be.

On ZOOM you are the only subject, so sit back in your chair and position the camera so that you fill up 2/3 of the frame with your head and shoulders. The top of your head should be in the middle center cell (2). Your neck and shoulders and arms should be touching 4-5-6 plus 7-8-9.

Tip #5

For those of you who don’t even turn the video on during the ZOOM call: get over it! You are human. You are not a supermodel. People will accept you as long as you can accept yourself.

Now, for those of you who are uncomfortable with their looks and don’t even put your camera on during a ZOOM call, I guarantee that at some point in the morning, you have looked at yourself in a mirror (perhaps even examined the various pores on your face), and after brushing out your bed head hair, you’ve said….OK, good enough, and started your day.

So I ask you if you are your toughest critic, and you’ve already given yourself a passing grade, you should be comfortable enough with how you look on camera.

Remember now that our way of doing business in cannabis has changed, it’s a whole new world of weed and on ZOOM!

A native of Newton Massachusetts and a 1979 graduate of Tufts University, Jimmy Young has over 40 years of experience in commercial television and radio. A former Emmy Award-winning Talk Show host for his sports talk show for kids on NECN in the 90’s, he is one of the rare professionals in that industry who has had success in front of the camera, in production, and in sales management.

The founder of Pro Cannabis Media is the current host of In The Weeds with Jimmy Young, a weekly podcast distributed over the CLNSMedia.com, site, iTunes, Spotify, Googlecast among others. In July of 2019, he teamed up with the founder of Cannabis.net, Curt Dalton, to host a two hour live monthly Weed Talk Show where the two Massachusetts natives have interviewed some of the biggest names in Cannabis, like Steve DeAngelo, Bruce Linton, and Tommy Chong. Locally local cannabis advocates and representatives from the medical establishment in the Bay State have all appeared on that show that is now being distributed nationwide. Young also produces a weekly news video, called News Dabs, highlighting and commenting on the biggest stories around the world in the emerging cannabis universe.

The 117th Congress – What To Watch

Before we dive into what to watch this Congress, we’d like to acknowledge the totally unacceptable and disgusting violence that besieged the Capitol recently. You can read NCIA’s statement on the insurrection here.

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

We’re barely halfway through January, and it already feels like so much has happened in 2021! We at NCIA anxiously watched along with the rest of the country to see who would be victorious in the Georgia Senate races and, subsequently, which party would control the U.S. Senate. Both of the Democrats, Rev. Raphael Warnock and Jon Ossoff defeated their Republican opponents and won their races —- ensuring that the Senate will be split 50-50 with Vice President-elect Harris being the tiebreaker.

The 117th Congress has barely begun, but after Inauguration Day on January 20th, things will really take off here in the nation’s capital. Keep reading to see my answers to FAQ’s for the new Congress:

Whatever happened to the SAFE Banking Act?

During the 116th Congress, the SAFE Banking Act (H.R. 1595/S. 1200) became the first cannabis-related bill to be passed by a chamber of Congress. In September of 2019, SAFE came to the House Floor under a suspension of the rules and passed by a whopping 321-103. While the bill had a hearing in the Senate Banking Committee back in the summer of 2019, it never received a markup or moved further than that. In addition to the bill itself, the SAFE Banking Act was also included in not one, but two COVID-19 relief packages passed by the House, colloquially known as HEROES I & II.

This session, the SAFE Banking Act will be back, and with even better chances to pass! The bill will be reintroduced in both the House and Senate in the next 1-2 months and we expect little to no changes to the text. Additionally, we’re also continuing to work with our Hill champions on this issue to see if we can get the language included in the next COVID-19 relief package — something that both President-elect Biden and Democratic leadership has said is pretty much priority number one.

In the meantime, keep an eye out for reintroduction and for how many cosponsors the bill has when it’s dropped — when the 116th Congress ended, SAFE had already passed the House as but also had 33 Senate cosponsors — that’s one-third of the entire chamber!

What’s next for the MORE Act and comprehensive cannabis reform? Is legalization on the horizon?

Cannabis policy ended the year on a high note (no pun intended!) when the Marijuana Opportunity, Reinvestment, and Expungement Act (H.R. 3884), commonly known as the MORE Act, passed out of the House of Representatives by a vote of 228-164.

As I mentioned earlier, all eyes were on the Georgia Senate races as we strategized over what could be possible for the 117th Congress depending on the outcome. With the results in, we now have a better idea about what’s possible with comprehensive reform, but there’s still a lot of unknowns.

We know that the MORE Act will be reintroduced sometime in the coming months in both the House and Senate. In the Senate, the lead sponsor was Kamala Harris, who is now Vice President-elect, which means another Senator will have to pick up the torch. I can’t share with you who it’s going to be just yet, but trust me when I say they will be a wonderful lead and are a true champion for cannabis reform!

A reintroduced MORE Act will likely have a good number of edits and changes, but the underlying intent of the bill will be the same: to remove cannabis from the Controlled Substances Act and help repair the harms the war on drugs has done — specifically to communities of color.

We also know that comprehensive reform, in general, has a better chance of advancing given that Democrats now control the Senate. Sen. Schumer (D-NY) was quoted in October as saying if he’s reinstalled as Majority Leader he “will put this bill in play,” and “I think we’ll have a good chance to pass it”, talking about his own bill, the Marijuana Freedom and Opportunity Act (S. 1552).

All of that being said, legalization, or the passage of comprehensive reform is far from a done deal. Legislation requires 60 votes for passage in the Senate, and we have a lot of hard work to do to get to that level of support in the upper chamber. In the House, Democrats have an even slimmer majority now than during the 116th Congress, so we also have to make sure we don’t lose support there.

What about appropriations?

You’ve been involved in cannabis for a long time if you remember when the appropriations process was the only way to get Congress to talk about this issue. But now, with Democrats controlling both chambers, you may be hearing more about these amendments again.

Appropriations bills are legislation in Congress that “appropriates,” or sets aside, federal funds to be divided between specific federal government departments, agencies, and programs. Read more about this process and why it matters for cannabis here.

Over the last few years, the House has continued to pass marijuana-related amendments but were unable to get through the Senate due to Republican control and a “gentleman’s agreement” between the Chair and Ranking Member of the Senate Appropriations Committee. But now, all of that will change.

In the past, appropriations amendments have been introduced that touch on a multitude of issues: research, veterans, medical and adult-use cannabis, hemp, banking… the list goes on! In this session, expect to see cannabis-related amendments included in the final budget. Just remember that budget bills must be passed annually, so anything that comes into law this way must be renewed again next year!

What’s going to happen at the committee level?

If you’re following cannabis policy at the federal level, definitely keep your eyes on what’s happening in various congressional committees. Given who controls both chambers, all of the committees will now be chaired by Democrats, which means you’re going to see a lot of cannabis-related bills come up for hearings and markups. Some I’ll be keeping my eye on, including both chambers’ appropriations, financial services, tax, and judiciary committees.

The opportunities for reforming our outdated cannabis laws have never been brighter than they are right now as we begin the 117th Congress. Bills are going to begin dropping left and right — and that’s because there’s a ton of excitement, enthusiasm, and optimism about what we can accomplish over the next two years.

Want to learn more about what’s possible? Make sure your company is an active member of NCIA and register for our next members-only webinar with our government relations team on Wednesday, January 27, or, if you can’t make it, hop on over to NCIA Connect to chat with us and learn more about what we’re working on in D.C.!

A Message From Our CEO – Farewell 2020

In these last few days of the year, I’m as eager as anyone to put it all behind us in the rearview mirror, but I’m also so grateful of what our members have made possible in 2020.

As we close out NCIA’s 10th year as the cannabis industry’s largest and most respected trade association, I’m just in awe of all the progress that has been made for the cannabis industry in spite of so many challenges.

When state governments were first grappling with the response to the pandemic, most deemed cannabis businesses as “essential,” allowing our industry to stay open to serve patients and adult consumers. Just a few years ago, this level of recognition as a vital sector of the economy would have been unthinkable — even to me!

What’s more, legal cannabis sales broke records throughout the months of this pandemic. It should be no surprise that #CannabisIsEssential to getting through a global pandemic.

Although our lobbying operation went virtual this year, NCIA was able to move the ball further than ever in Congress. The House of Representatives ended the year by passing the groundbreaking MORE Act, marking the first time either chamber of Congress has approved legislation to legalize cannabis since its prohibition over 80 years ago.

Public support for sensible marijuana policy and the legal cannabis industry stands at its all-time high. During the most divisive election in modern U.S. history, voters from across the political spectrum support ending prohibition and putting cannabis behind a regulated counter. In fact, adult-use cannabis initiatives garnered more votes than President-Elect Biden in every state where both appeared on the ballot — including the two he decisively won (New Jersey and Arizona).

The hundreds of forward-thinking businesses that support our advocacy and education efforts have made this incredible progress possible, in spite of an otherwise dismal year.

It’s been almost ten months since we have been able to host in-person events but NCIA has continued to keep our community connected and informed through our Industry Essentials educational webinar series, Cannabis Caucus (cyber) events, and the Cannabis Business Cyber Summit.

NCIA also launched a second weekly podcast offering, The Cannabis Diversity Report, and celebrated more than 200 episodes of The Cannabis Industry Voice podcast (also top 50 U.S. Business News charts for Apple Podcasts), plus monthly live video updates with NCIA Today.

During this temporary break from face-to-face networking, we’ve created several digital sponsorship opportunities for savvy cannabis businesses to elevate their brand while also supporting the work we are doing to advance the industry.

Amidst our national reckoning over systemic racism and police brutality, NCIA launched our Equity Scholarship program which now provides membership benefits to over 100 equity operators. Thanks to the financial support of a growing number of businesses that have stepped up to support social equity in cannabis, this important program will continue to be a priority in 2021 and beyond.

2020 was also a great year to be a member of NCIA. As the only full-service trade association in the cannabis industry, we take pride in providing our members with the resources they need to gain a competitive advantage over the industry’s free-riders and isolated operators.

Over the past year, we’ve expanded our membership benefits with the launch of our exclusive online community, NCIA Connect, as well as significant member-only discounts on Simplifya’s compliance platform.

I take pride that NCIA is the only association in cannabis providing our members with this kind of direct ROI in addition to professional political representation in our nation’s halls of power.

Our members are building the next great American industry. It’s an honor representing them through the thick and thin. Progress takes time but the work we are doing to build support for that industry in the halls of Congress and among the voting public is paying off.

On behalf of the whole team at NCIA, I wish you a happy holiday season and new year! I hope you’re enjoying it safely with those you love.

We have even more in store for 2021 as we continue to support our members through advocacy, education, and community, so stay tuned.

With gratitude,

Aaron Smith
Co-founder & CEO

P.S. If you are not yet a member of NCIA but somehow read all the way to this point, please take just a couple of minutes more to join today. NCIA membership is a simple investment in the future of your business and our industry.

P.P.S If you are a member, reach out and say hello. I’d love to hear about your plans for 2021 and find out how NCIA can help your business succeed.

Video: NCIA Today – Special Episode with NCIA’s Michael Correia On The Historic MORE Act House Vote

Join NCIA Deputy Director of Communications Bethany Moore and our Government Relations Director Mike Correia for a quick discussion about last week’s historic passage of the MORE Act.

On Friday, December 4, the House of Representatives made history by voting to approve H.R. 3884, the Marijuana Opportunity, Reinvestment, and Expungement (MORE) Act.

The MORE Act would remove marijuana from the federal Controlled Substances Act and work to repair the social and personal harms caused by federal marijuana enforcement. This is the first time since marijuana was made federally illegal that either chamber of Congress has held a floor vote on- or approved- a bill to make the substance legal again.

The final vote count of 228-164 fell mostly along party lines, with five Republicans crossing the aisle to support, and six Democrats voting to oppose.

This monumental victory shows just how far Congress has come over the years. Although this vote more closely aligns the House of Representatives with the majority of voters who overwhelmingly support cannabis legalization, the Senate is a different story.

Historic Victory in the House: The MORE Act

by Madeline Grant, NCIA’s Government Relations Manager

On Friday, December 4, the House of Representatives made history by voting to approve H.R. 3884, the Marijuana Opportunity, Reinvestment, and Expungement (MORE) Act. The MORE Act would remove marijuana from the federal Controlled Substances Act and work to repair the social and personal harms caused by federal marijuana enforcement. This is the first time since marijuana was made federally illegal that either chamber of Congress has held a floor vote on- or approved- a bill to make the substance legal again. The final vote count of 228-164 fell mostly along party lines, with five Republicans crossing the aisle to support, and six Democrats voting to oppose.

As we have seen over and over again, the Senate Republicans continue to obstruct cannabis reform measures. The House passed the SAFE Banking Act in September 2019 and included the SAFE Banking language in two COVID-19 relief packages, however, there has been little activity on these topics in the Senate. Republican Senators have repeatedly spoken out in opposition of bringing up cannabis policy amidst the pandemic, stating that it’s not the time or place. But as I mentioned before, it’s also important to note that the House has passed not one, but two COVID relief packages in the last 6+ months that the Senate (namely, Leader McConnell) has refused to take up. That being said, despite a global pandemic, support for cannabis reform remains strong, a recent Gallup poll showed a record 68% of Americans support making cannabis legal. On Election Day, voters in Arizona, Montana, and New Jersey approved measures to regulate cannabis for adults, while Mississippians overwhelmingly approved a medical cannabis referendum, and voters in South Dakota passed both adult-use and medical initiatives. The vote and passage of the MORE Act on the House show that House leadership is listening.

The MORE Act, sponsored by the House Judiciary Committee Chairman Jerry Nadler (D-NY) and 120 cosponsors, would not only mitigate the federal-state conflict by removing cannabis from the Controlled Substances Act, but it would also require the expungement of past federal cannabis convictions. The bill would also establish a Cannabis Justice Office to administer a program to reinvest resources in the communities that have been most heavily impacted by prohibition, funded by a tax on state-legal cannabis commerce. It would also allow the Small Business Administration to provide loans and grants to cannabis-related businesses and support state and local equity licensing programs, permit doctors within the Veterans Affairs to recommend medical cannabis to patients in accordance with applicable state laws, and prevent discrimination based on cannabis consumption during immigration proceedings.

When the House version of the MORE Act was originally introduced in 2019, it was referred to eight Committees (with the Judiciary Committee being primary). Each Committee had provisions of the bill that fell under its jurisdiction and had authority to hold hearings and or amend specific jurisdictional provisions. Two Committees (Energy and Commerce and Ways and Means) were expected to be very active on language affecting regulations and taxes. The Energy and Commerce Committee even held a legislative hearing on MORE in January, and were expected to hold more… and then COVID hit… and priorities changed.

Before the Floor vote, the main sponsor of MORE, Judiciary Chairman Jerry Nadler, offered a “manager’s amendment.” The majority of the language was taken straight from H.R. 1120/S. 420: the Marijuana Revenue and Regulation Act. It included a graduated tax, and language on federal permitting and bonding. During debate, Congressional leaders gave assurances to include the cannabis industry advocates in future discussions and listen to cannabis industry concerns. Although passage of the MORE Act is historic, no legislation is perfect and NCIA staff will continue working with congressional champions to improve MORE and eventually get it passed into law.

Now, as we near the end of the 116th Congress, the NCIA team will continue to work and strategize various ways forward in Washington, D.C– on SAFE Banking, the MORE Act, and beyond. As we see more and more legislative victories each Congress, it is important to relish in our success and continue to propel the momentum forward (we could all use a moment to celebrate after 2020!). The MORE Act vote, being the most comprehensive cannabis bill on Capitol Hill, gives us the momentum to accomplish more in the next congressional session. Thank you to each and everyone one of you who took the time to call your Representative. Stay tuned for the 117th Congress!

Video: NCIA Today – The MORE Act, 2020 Election, Board of Directors, and More!

Tune in to this month’s episode of NCIA Today with Deputy Director of Communications, Bethany Moore.

This month, we’re sharing even more important news about The MORE Act, an analysis of the results of the 2020 election, plus our own Board of Directors election results, and a new policy report from NCIA’s Policy Council. We review some clips from the educational panels from our very first CYBER edition of our Cannabis Business Summit & Expo.

We’re doing a great job staying home, wearing masks, and socially-distancing through these difficult times. We can’t wait to get back to hosting our national and regional events in person later in 2021. In the meantime, make sure you’re subscribed to our email list, and listening to NCIA’s weekly podcasts hosted by myself and Tahir Johnson. And now is a great time to invest in the future of our industry by getting more involved in NCIA, registering for our educational webinars, and learning more about the Diversity, Equity, and Inclusion Program SPONSORSHIP opportunities! Join NCIA members who have stepped up their support by becoming DEI Program Sponsors like 4Front Ventures and Greenbridge Corporate Counsel.

Senate Race Runoffs in the Peach State

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

As you’ve probably heard by now, which party controls the Senate won’t be known until January 5 — but those results could quite literally determine if marijuana will become federally legal over the next few years.

In Georgia, no candidate can advance through a primary or a general election system without first earning more than 50% of the votes. If no one does, the top two vote getters advance to a runoff election, ensuring that one will earn the majority of votes cast.

This year, the state’s two Senate races — one regular, the other a special election to fill the remainder of a retired senator’s seat — have gone to a runoff. The first will be between incumbent Sen. David Perdue (R) and Democrat Jon Ossoff; the latter will be between Republican Sen. Kelly Loeffler and Democrat Rev. Raphael Warnock. If Democrats win both seats, the Senate will be tied 50-50, and Vice President-elect Kamala Harris would be the tie breaking vote.

It can’t be overstated that the Democrats have an uphill (but not impossible!) battle ahead. In November, Sen. Perdue garnered 86,000 more votes than Ossoff, while Warnock benefited from the fact that two Republicans — both Sen. Loeffler and Rep. Doug Collins — were on the ballot in his race, splitting the party’s votes.

And of course, it’s 2020, so I would be remiss not to mention the pandemic! The runoff is taking place in an off-election year in (what will likely still be) the middle of a serious surge of COVID-19 cases. On top of that, Republicans historically have a stronger track record of turning out in runoffs in the state.

Despite all of that, Democrats are working hard to turn out the vote and organize early. In addition to relying heavily on both first-time voters and Black voters, Democrats are also hopeful that young voters will be the key to winning the runoff in January. Ossoff recently said:

“There are 23,000 young people here in Georgia who will become eligible to vote just between the November election and this January 5 runoff, and a decade of organizing, much of this work led by Stacey Abrams, has put the wind in our sails here in Georgia. What we’re feeling for the first time in four years is hope.”

As I said before, which party controls the Senate could quite literally be the difference between whether or not cannabis could become federally legal in the next one to two years. Senate Minority Leader Chuck Schumer (D-NY) was interviewed in October and said:

“I’m a big fighter for racial justice, and the marijuana laws have been one of the biggest examples of racial injustice, and so to change them makes sense. And that fits in with all of the movement now to bring equality in the policing, in economics, and in everything else. Our bill is, in a certain sense, at the nexus of racial justice, individual freedom and states’ rights.”

Schumer was referencing the bill he introduced, the Marijuana Freedom and Opportunity Act, which would remove cannabis from the Controlled Substances Act, allowing states to set their own policies. It also includes provisions to help funding to cannabis businesses owned by women and people of color through the Small Business Administration; funding studies on traffic safety, impairment detection technology, and health effects of cannabis; restricting advertising that could appeal to children; and setting aside $100 million over five years to help states develop streamlined procedures for expunging or sealing prior cannabis convictions.

Time is of the essence. Voters must be registered by December 7 in order to participate in the runoff election. If you’re in Georgia, or know anyone who is a resident, please check out the Cannabis Voter Project to learn more and make sure you’re ready to vote. If you can, consider making a donation to the Ossoff campaign or the Warnock campaign. The future of cannabis legalization in this country depends on it!

Commmittee Blog: NCIA’s Diversity, Equity, and Inclusion Committee Offers Critiques and Recommendations for Illinois Social Equity Dispensary Licensing Process

Illinois Cannabis shutterstock_1229211757

by NCIA’s Diversity, Equity, and Inclusion Committee

We are NCIA’s Diversity, Equity, and Inclusion Committee (DEIC), comprising experienced professionals representing a diverse range of backgrounds. In response to the early results of the Illinois Adult Use Dispensary application process, and with the interest of supporting Illinois’ Social Equity efforts, we felt compelled to reach out and offer our analysis and recommendations.

While the creation of the Social Equity Program in the Cannabis Regulation and Tax Act and Illinois Department of Financial and Professional Regulations (“IDFPR”) implementation of the licensing scheme was well-meaning and intentioned, the recent litany of lawsuits and outcry from advocacy groups following Illinois’ inaugural issuance of cannabis licenses indicates heavy criticism. As demonstrated thus far, the Social Equity Program appears limited in its ability to capture a sufficient representation of persons most harmed by the War on Drugs in Illinois in business licensure and ownership, or to generate the opportunities for restorative justice and building generational wealth for such persons as hoped.

Our intention with this letter is to state our express desire to lend the expertise and resources of NCIA’s DEIC to support Illinois legislators in crafting Illinois’ licensing and regulatory systems in a manner that reflects the Social Equity Program’s laudable mission of reducing barriers to cannabis business ownership, and establishing a legal cannabis industry that is equitable and accessible to those most harmed by the disparate enforcement of drug-related laws in Illinois. Furthermore, we hope to lend support to local organizations building toward that same goal, and to form a coalition as we all strive to rectify the harmful effects of prohibition and the War on Drugs.

At this time, and pending further collaboration with local officials, NCIA’s DEIC makes the following recommendations for your consideration. For further understanding of the analysis supporting these recommendations, please see the attached report.

For IDFPR to move forward with license scoring and issuance as soon as possible, we suggest the following:

Removing the required possession of premises and overhead to hold on to property (not required of dispensary applications and may bankrupt existing applicants awaiting results)
Ensuring oversight of KPMG (the 3rd-party firm hired by the State of Illinois to score the applications) by persons of color and social equity representatives
Allowing for a documented appeals process internally with KPMG results before issuing them to all applicants
Scrutinizing Operating Agreements in the rubric and gradient to ascertain and avoid predatory or straw-man agreements

Moving forward, reasonable transparency would include knowing what the makeup and process was for KPMG in making their first evaluations, and what the process will look like for the re-scoring to avoid conflicts of interest. Specifically, IDFPR can ensure transparency by making the following information public:

Evaluation Rubric
Composition of the Reviewers
Scoring Process and Determination of Grading
Frequency of KPMG Meetings
KPMG Public Relations Contact
Timeline of Events During the Scoring Process
Lessons Learned and Plan for Improvement on Future Scoring Rounds

For future rounds of applications, we offer these recommendations:

Pre-qualifying social equity applicants for state funding to ensure economic empowerment in the application process
Providing a path forward for those who are not (yet) qualified to operate a cannabis business, but are qualified as social equity applicants
Allowing for 100% Social Equity Applicant owned businesses to qualify for cannabis experience points without partnering with a multi-state operator (“MSO”)
Issuing delivery licenses for social equity operators

We also express our support for the recommendations made by the Cannabis Business Association of Illinois’ Minority Access Committee, in their October 5, 2020, letter to Governor Pritzker. (see here)

Finally, we appreciate the efforts taken by Governor Pritzker, the Illinois legislature, and IDFPR thus far to address disparities in the application process and commend Governor Pritzker for taking leadership on this important issue. Allowing this first generation of applicants to address deficiencies in their applications, as it was originally intended to allow them to do, offers another opportunity to enter the lottery system, which we recognize and appreciate.

Additionally, the commission of a disparity study is commendable and should prove helpful in understanding what went wrong and how to improve. If anything, we hope our expertise and professional experience will assist in this process and in the effort to improve upon the mistakes of the past to achieve a more diverse, inclusive, and socially equitable future.

Thank you for your time and attention to this matter. Please let us know if we can assist in any way.

Sincerely,

The National Cannabis Industry Association
Diversity, Equity, and Inclusion Committee

The full letter and analysis can be found here.

Committee Blog: Why Company Culture is More Important Than Ever Before

by Shawnee Williams, Illinois Equity Staffing
NCIA’s Human Resources Committee

Company executives and human resources professionals often talk about company culture as if it were a faraway planet, dreamy to think about and look at, but impossible to grasp. Now more than ever with a global pandemic and civil unrest, company culture is crucial to the success of a business.

So what is it?

Well simply put, company culture is defined as a set of behavioral and procedural norms observed by an organization. Typically, we use policies, procedures, codes of conduct, values, goals and initiatives to mold and shape our company culture. From the employee relations perspective, company culture is a company’s personality.

What are the different types of company culture?

There are many different types of company culture and some industries tend to gravitate towards certain cultures more often than others. The three main types of company culture are leadership, traditional, and innovative.

Leadership company culture focuses on developing employees and helping them grow in their careers through mentorship and coaching. The main idea is to create an organization of leaders, because as many say, a team is only as strong as their weakest link.

Traditional company culture is the most conventional style of company culture and it tends to get a bad reputation for being “stuffy.” Most folks wear suits and ties, there are a lot of rules and policies in place and there tends to be a clear organizational hierarchy.

The last company culture type, and probably most effective for the cannabis industry, is an innovative company culture. An innovative company culture is focused on the development and innovation in the business. This culture tends to break down the barrier to allow for open communication and transparency. Innovative company culture tends to be inclusive and accepting of individuality. Many innovative and creative employees tend to thrive in this setting and thus do amazing work for innovative companies.

What affects company culture?

Outside of the policies and procedures, there are other factors that shape our company culture including company goals, backgrounds and experiences of the aggregate employee workforce, leadership styles, rewards, and disciplinary systems in place as well as local and national government policies. I’d also add cultural norms with the local and national government, as that heavily affects our company culture. For instance, we often look to Europe with mastering work-life balance due to shorter workweeks and longer maternity leaves.

The backgrounds and experiences of the aggregate workforce is also a huge factor we often overlook. If we have an unconscious bias on our recruitment team, chances are, the entire organization will mirror that make-up, backgrounds, and experiences of the in-house recruiters, which leads to a lack of diversity across the board.

Why is company culture important?

Company culture within an organization separates the successful businesses from the failing businesses. In fact, poor company culture will almost always result in high turnover, poor customer experience, disengaged employees, lower morale and eventually lower profitability.

What is Human Resources’ role in company culture?

What can you do as a human resources professional within an organization to support company culture?

Carry out organizational values day-to-day
Effectively communicate company culture through recruiting and new hire processes
Clearly define roles and responsibilities of each employee within the organization
Provide continuous learning and development
Sustain reward and recognition systems
Administer and maintain performance management

What can Human Resources Assess and Develop Company Culture?

Many organizations harness the power of employee experience survey instruments to determine the success (or failure) of their company culture. After developing an appropriate assessment tool, the next step is to administer the assessment properly. Be sure there’s a goal for participation and a plan of action to attack following up with employees who haven’t completed the assessment.

This is where a lot of organizations fall off. After obtaining responses, you must analyze and actually communicate the results of the survey in a town hall. From there, you work on your areas of opportunity in focus groups within the organization. Most focus groups consist of volunteers from all departments and different levels of seniority and experience.

The next step is to actually take action and begin implementing changes that can improve your areas of opportunity addressed in the survey. This assessment process is iterative, so after following through with suggested changes, you follow up routinely with the same assessment. While this process seems daunting, it shows your employees that you actually care about their experience and want to improve as an employer.

As we continue to develop and evolve as an emerging industry, keep company culture at the forefront of your efforts. Remember, if you take care of your employees, they will take care of your customers, and that growth and profits will absolutely come naturally.

Rashaunah “Shawnee” Williams is the co-founder at Illinois Equity Staffing, an MBE and WBE firm based in Chicago, that supports the cannabis industry in education, job placement, human resources, payroll and social equity & diversity compliance. Shawnee and her business partner Lynette Johnson founded Illinois Equity Staffing because they understood the barriers to entry for lower and middle-class people, minorities and women in the cannabis industry. Both having the “Corporate America” background, Shawnee and Lynette, understand the pain points of this population, as they both grew up in disproportionately impacted areas and are minority women. It’s this perspective that has allowed Illinois Equity Staffing to bridge the gap and create a more equitable cannabis industry in Illinois. She is a member of IWC, Chicago NORML, MCBA, the Cannabis Equity Coalition, Cannabiziac, and BIPOCANN. She also serves on the Human Resources Committee with the National Cannabis Industry Association and the advisory board of Cannabiziac.

Member Blog: Rolling Out Legal Cannabis in New Jersey – 15 Key Points from the Proposed Law

by Charles J. Messina, Esq. and Daniel Pierre, Esq. of Genova Burns LLC

Many are thrilled that the Garden State will finally allow recreational use of cannabis for adults aged 21 years and older. Before recreational use can become legal, however, we have to wait for Trenton to pass a law that will regulate New Jersey’s cannabis marketplace. Determined to get the ball rolling, Senators Nicholas Scutari and Stephen Sweeney recently introduced a 200+ page bill, S-21, to start the process for legalization. This article highlights major points from the bill you should know if you’re looking to join this emerging industry.

Is adult-use (recreational) of cannabis currently legal in New Jersey?

No. Although New Jersey voters approved the referendum that amended the State Constitution to legalize the recreational use of cannabis for adults age 21 years and older, recreational use is not legal until New Jersey lawmakers pass a bill that regulates recreational use of cannabis.

When will New Jersey lawmakers pass the enabling law?

It is uncertain when the enabling law will pass. But Senator Nicholas Scutari said he wants the bill to hopefully pass before the end of this month. Two days after the referendum passed in New Jersey, he and Senator Stephen Sweeney introduced Bill S-21 – “New Jersey Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act.” If passed, the bill will legalize the personal use of cannabis for adults subject to regulation by the Cannabis Regulatory Commission.

What is the Cannabis Regulatory Commission (CRC)?

The CRC is a panel of five appointed individuals who will be responsible to oversee the development, regulation, and enforcement of use and sale of cannabis in New Jersey. The CRC will also implement the legislation that Governor Murphy will ultimately sign to legalize recreational use within the state.

Who are the CRC members?

As of today, only two appointees have been named – Dianna Houenou, who will serve as the CRC Chair, and Krista Nash as a member. Although we are still waiting for the remaining three members to be named, we know that Jeff Brown – the Assistant Commissioner of the Department of Health, who currently leads the medicinal marijuana program in New Jersey – has been tapped to become the first Executive Director of the CRC.

What are the CRC’s powers?

The CRC has the authority to, among other things, adopt, amend or repeal regulations that control the cannabis marketplace. It can also grant, refuse, suspend, revoke, cancel, or take actions otherwise limiting licenses or conditional licenses related to cannabis.

What are the different types of cannabis licenses contemplated in the proposed legislation?

Currently, there are six classes of licenses:

Class 1 Cannabis Grower license – permits growing, cultivation, or production of cannabis in New Jersey.
Class 2 Cannabis Processor license – permits manufacturing, preparing, and packaging of cannabis.
Class 3 Cannabis Wholesale license – permits the storage and sale of cannabis strictly for resale.
Class 4 Cannabis Distributor license – permits the intrastate transportation of cannabis in bulk.
Class 5 Cannabis Retailer license – permits the sale of cannabis directly to members of the public.
Class 6 Cannabis Delivery license – permits delivery of cannabis from a retailer to the public.

Also, the bill was recently amended to allow the CRC to create a new license category.

Can individuals or small businesses apply for any of the licenses?

Yes. Under the current version of the bill, at least 25% of the total number of licenses in each class are reserved solely for microbusinesses. “Microbusiness” is defined as a person or entity with business operations that employ no more than 10 employees. Reserving 25% of licenses for small businesses is intended to, among other things, prevent interstate megabrands from completely dominating the marketplace in New Jersey.

Are there any restrictions placed on microbusinesses?

Yes, in order to qualify as a microbusiness under the proposed legislation, you cannot process more than 1,000 cannabis plants each month, operate a cannabis establishment that occupies more than 2,500 square feet, or acquire more than 1,000 pounds of cannabis in dried form for retail, resale, or processing each month.

Can I personally grow cannabis from my house for personal use or retail?

No. There is currently no “home grow” component to the bill.

Can I hold two classes of licenses concurrently?

As currently written, there are certain restrictions with respect to holding two classes of licenses concurrently. In particular, once retail sales of cannabis begin, there is supposed to be an 18-month limitation on the number and classes of licenses any one licensee may hold. During this 18-month period, the current bill prohibits a licensed grower, processor, wholesaler, distributor, or delivery service licensee to also become a licensed retailer, and vice versa. Also, a grower or processor may only concurrently hold two licenses – either another grower or processor license – for now.

How do I apply for a license?

Not so fast…first, the remaining appointment of the CRC Commissioners needs to happen along with the promulgation of regulations by the CRC. Then at some point in 2021, an application round for licenses should be announced. Each application for an annual license to operate a cannabis business must be submitted to the CRC. A separate license or conditional license will be required for each location where a cannabis establishment seeks to operate (or for the location of each premises from which a cannabis distributor or delivery service seeks to operate). Renewal applications for another annual license may be filed up to 90 days prior to the expiration of the establishment’s, distributor’s, or delivery service’s license.

What should I be doing now to prepare for obtaining a license?

Too much to write in one paragraph! But, after forming your application team and getting your corporate formation ducks in a row, one of the first things you should be thinking about is location.

Does that mean municipal approval is required in order to open a cannabis business?

Good guess. The CRC will require proof of local support for the suitability of the location of your proposed cannabis business. There were 70+ municipalities that were intending to ban canna-businesses. This number is likely to drop as municipalities should be able to charge up to a 2% tax on cannabis sales, which can help plug the deficit gap related to the ongoing COVID-19 pandemic and further other social justice initiatives.

Speaking of taxes, how will cannabis be taxed once regulated?

According to the referendum, cannabis products would be subject to New Jersey’s sales tax (i.e., 6.625%), in addition to the potential local tax of up to 2%. As the bill is currently drafted, the sales tax revenue is supposed to be used to administer the cannabis program and reimburse police departments for training costs associated with enforcing the law. There may also be an additional tax imposed on cultivators, and that revenue would likely be directed to social equity initiatives.

Will the CRC prioritize applications based on location?

Yes. The CRC is supposed to prioritize applications on the basis of impact zones, for which past criminal marijuana enterprises contributed to higher concentrations of law enforcement activity, unemployment, and poverty. The bill defines an “impact zone” as any municipality that has a population of 120,000 residents and ranks in the top 40 percent of municipalities in New Jersey for cannabis related arrests.

Daniel Pierre is an Associate in Genova Burns’ Newark, NJ office and a member of the Cannabis and Labor Law Practice Groups. In addition to labor work, he likewise assists clients in the cannabis industry, from analyzing federal and state laws to ensure regulatory compliance for existing businesses to counseling entrepreneurs on licensing issues.

Charles J. Messina is a Partner at Genova Burns LLC and Co-Chairs the Franchise & Distribution, Agriculture and Cannabis Industry Groups. He teaches one of the region’s first Cannabis law school courses and devotes much of his practice to advising canna-businesses as well as litigating various types of matters including complex contract and commercial disputes, insurance and employment defense matters, trademark and franchise issues and professional liability, TCPA and shareholder derivative actions.

For over 30 years, Genova Burns has partnered with companies, businesses, trade associations, and government entities, from around the globe, on matters in New Jersey and the greater northeast corridor between New York City and Washington, D.C. We distinguish ourselves with unparalleled responsiveness and provide an array of exceptional legal services across multiple practice areas with the quality expected of big law, but absent the big law economics by embracing technology and offering out of the box problem-solving advice and pragmatic solutions.

Given Genova Burns’ significant experience representing clients in the cannabis, hemp and CBD industries from the earliest stages of development in the region, the firm is uniquely qualified to advise investors, cultivators, processors, distributors, retailers and ancillary businesses.

ACTION ALERT: Congress to Vote on Historic MORE Act

The Marijuana Opportunity, Reinvestment, and Expungement Act (H.R. 3884) is expected to come to a vote in the U.S. House of Representatives in December 2020. NCIA has been building support for this bill in Congress for the last year and now we need your help!

Please call your member of Congress and ask them to vote YES on the MORE Act today!

Look up your congressional representative and contact info by zip code, here.

Reference our congressional scorecard to find out if your representatives are sponsoring NCIA’s priority legislation, including the MORE Act.

Sample script to help guide your call:

Hello! My name is _______________ and I am a constituent of yours in (city, state, zip code). I am calling today to ask that Representative _____________ votes “Yes” on H.R. 3884, the MORE Act, when it comes to the Floor for a vote in December.

This bill would remove cannabis from the Controlled Substances Act at the federal level, leaving marijuana policy up to the individual states. It also creates avenues towards expungement, re-sentencing, and assists those communities that have most been impacted by the failed war on marijuana. Additionally, legal cannabis is a huge economic driver and would help both the federal government and states’ revenue shortfalls during this pandemic.

Thank you for your time today. Again, I hope Representative _____________ will vote “Yes” on H.R. 3884, the Marijuana Opportunity, Reinvestment, and Expungement Act.

*Feel free to tell a personal story if you feel it is relevant or powerful, but remember that staffers are busy so sometimes short and sweet is best!*

Summary of the Marijuana Opportunity, Reinvestment, and Expungement Act of 2019:

The Marijuana Opportunity, Reinvestment, and Expungement Act (H.R. 3884, S. 2227), commonly known as the MORE Act, was introduced in 2019 by House Judiciary Committee Chairman Jerry Nadler (D-NY) and Senator (now Madam Vice President-Elect) Kamala Harris (D-CA).

This bill would:

Decriminalize cannabis federally: The bill removes cannabis from the Controlled Substances Act, leaving cannabis policy up to the states
Allow for expungement of marijuana convictions and arrests, sealing of records, and re-sentencing: Requires federal courts to expunge prior convictions and arrests and seal court records for those not under a current criminal justice sentence and requires courts, on motion, to conduct re-sentencing hearings for those under a criminal justice sentence.
Establish sales tax and “Opportunity Trust Funds”: Authorizes the assessment of a 5% sales tax on marijuana and marijuana products to create an Opportunity Trust Fund, which includes three grant programs:
- The Community Reinvestment Grant Program, administered by the Department of Justice, would provide services to the individuals most adversely impacted by the War on Drugs, including job training, re-entry services, legal aid, literacy programs, youth recreation, mentoring, and substance use treatment.
- The Cannabis Opportunity Grant Program, administered by the Small Business Administration (SBA), would provide funds for loans to assist small businesses in the marijuana industry that are owned and controlled by socially and economically disadvantaged individuals.
- The Equitable Licensing Grant Program, also administered by SBA, would provide funds for programs that minimize barriers to marijuana licensing and employment for the individuals most adversely impacted by the War on Drugs.
Make available SBA programs and services to cannabis businesses: Specifies that the SBA may not negate eligibility for loans and other services based on a business being cannabis related.
Clarify federal public benefits: Prohibits the denial of any federal public benefit (including housing) based on the use or possession of marijuana, or prior conviction for a marijuana offense.
Protects immigrants: Provides that the use or possession of marijuana, or prior conviction for a marijuana offense, will have no adverse impact under the immigration laws.
Provide for data Collection: Requires the Bureau of Labor Statistics to collect data on the demographics of the industry to assess whether people of color and those who are economically disadvantaged are participating in the industry.
Age equity for juveniles: The bill applies equally to juveniles and adults, protecting young people from harmful criminal records.

NCIA’s Allied Associations Program Returns!

Video: NCIA Today – April 9, 2021

Video: NCIA Today – April 2, 2021

Senate to Consider SAFE Banking as the White House “Cleans” House

Video: NCIA Today – March 26, 2021

USPS and Vaping Devices: What You Need To Know

What does this actually do?

How can you help?

Video: NCIA Today – March 19, 2021

Action Alert: Submit Comments to USPS and Congress about Mailing Vaping Products

What You Need To Know

How You Can Take Action

Video: NCIA Today – March 12, 2021

Video: NCIA Today Weekly Episode – March 5, 2021

Momentum Across The Nation – New Mexico, Virginia, and the District of Columbia

Virginia

New Mexico

District of Columbia

Let the 117th Congress Begin

An Important Announcement About NCIA’s Lobby Days

Video: NCIA Today – 117th Congress, New Scorecard, DEIC Update, and more!

Member Blog: Is 2021 the Year that Brings Normalcy to Cannabis?

“A recent report from the ACLU looked at data from 2018 and found that black people were 3.6 times more likely to be arrested for cannabis possession than white people.

This is despite both groups use cannabis at similar rates.

Even in western states with recreational cannabis laws, black people were 1.5-1.8% more likely to be arrested for having cannabis.” Emily Earlenbaugh, Forbes

First Year: Cannabis gets removed from the Controlled Substances Act schedule

Second Year: Decriminalization and expungement of cannabis possession crimes with banking reform

Third Year: Interstate commerce

Fourth Year: Full Federal legalization, international export markets open

NCIA Welcomes New and Returning Members to Board of Directors

The organization’s Nominating Committee brought on four new board members.

The full list of Board members and their bios is available here.

Committee Blog: Trust In Cannabis – Why It Matters More Now Than Ever

Consumers (and therefore investors) are looking at brands in a more holistic manner. Trust will be the single most valuable brand attribute.

Trust is defined on two spectrums: competence and ethics.

What To Watch: The Executive Branch Edition

Here’s my breakdown of the top three agencies I’ll be watching:

Treasury Department

Department of Justice (DoJ)

Small Business Administration (SBA)

NCIA Condemns Recent Insurrection and Some GOP Lawmakers’ Attempts to Undermine American Democracy

Member Blog: A Whole New World On Zoom – 5 Tips To Look And Sound Like A Pro

Tip #1

Tip #2

Tip #3

Tip #4

Tip #5

The 117th Congress – What To Watch

Before we dive into what to watch this Congress, we’d like to acknowledge the totally unacceptable and disgusting violence that besieged the Capitol recently. You can read NCIA’s statement on the insurrection here.

Whatever happened to the SAFE Banking Act?

What’s next for the MORE Act and comprehensive cannabis reform? Is legalization on the horizon?

What about appropriations?

What’s going to happen at the committee level?

A Message From Our CEO – Farewell 2020

Video: NCIA Today – Special Episode with NCIA’s Michael Correia On The Historic MORE Act House Vote

Historic Victory in the House: The MORE Act

Video: NCIA Today – The MORE Act, 2020 Election, Board of Directors, and More!

Senate Race Runoffs in the Peach State

Commmittee Blog: NCIA’s Diversity, Equity, and Inclusion Committee Offers Critiques and Recommendations for Illinois Social Equity Dispensary Licensing Process

Committee Blog: Why Company Culture is More Important Than Ever Before

So what is it?

What are the different types of company culture?

What affects company culture?

Why is company culture important?

What is Human Resources’ role in company culture?

What can Human Resources Assess and Develop Company Culture?

Member Blog: Rolling Out Legal Cannabis in New Jersey – 15 Key Points from the Proposed Law

Is adult-use (recreational) of cannabis currently legal in New Jersey?

When will New Jersey lawmakers pass the enabling law?

What is the Cannabis Regulatory Commission (CRC)?

Who are the CRC members?

What are the CRC’s powers?

What are the different types of cannabis licenses contemplated in the proposed legislation?

Can individuals or small businesses apply for any of the licenses?

Are there any restrictions placed on microbusinesses?

Can I personally grow cannabis from my house for personal use or retail?

Can I hold two classes of licenses concurrently?

How do I apply for a license?

What should I be doing now to prepare for obtaining a license?

Does that mean municipal approval is required in order to open a cannabis business?