Make Your Comment Count! A Guide for Industry Advocates
Understanding the Importance of Effective Public Comments on Cannabis Rescheduling Proposals
The cannabis industry is abuzz with anticipation over the rescheduling proposals. From industry groups to advocacy organizations, companies, and activists, discussions on submitting effective public comments are in full swing. This marks a significant moment as the federal government proposes to reclassify cannabis for the first time, moving it from Schedule I to Schedule III. This move acknowledges cannabis’s medical value, a recognition long sought after. Amidst this pivotal moment, it’s crucial to ensure that your public comments on cannabis rescheduling are not only heard but are also meaningful and impactful.
For a comprehensive toolkit to assist in crafting your public comment, visit NCIA’s resource page here.
Tips for Crafting Effective Public Comments on Cannabis Rescheduling Proposals
1. Be Respectful
While it may seem obvious, maintaining respectful language is crucial. Emotions can run high when discussing cannabis regulation, but name-calling or using foul language can undermine your message. Ensure your comments are taken seriously by maintaining a professional tone.
2. Stay on Topic
Focus your comments narrowly on the specific cannabis rescheduling issue at hand. Whether addressing the DEA or local city council, avoid including unrelated grievances. For example, if discussing zoning laws affecting cannabis businesses, refrain from delving into tax issues or home grow regulations. This clarity strengthens your argument and prevents your message from appearing scattered.
3. Clearly State Your Requests
Ensure your asks are explicit and easy to identify. Begin and conclude your letter with a clear statement like, “I am asking you to…”, followed by the action you want. Decision-makers review numerous letters daily, so clarity on your stance and desired action is essential for your public comment on cannabis rescheduling to be counted.
4. Provide Supporting Data and Stories
Back your arguments with relevant data and compelling anecdotes. This enriches your public comment on cannabis rescheduling and provides context for your requests. Ensure your evidence supports your advocacy effectively.
The Importance of Advocacy in Cannabis Rescheduling
Public support has been instrumental in progressing cannabis rescheduling reform. However, societal attitudes towards cannabis are dynamic, and advocacy efforts are crucial in maintaining momentum. Active participation in public processes, done respectfully and productively, is our best defense against potential setbacks in cannabis policy.
Advancing Change: Advocacy Through Effective Public Comments on Cannabis Rescheduling
Crafting effective public comments on cannabis rescheduling is a vital tool in advocating for cannabis rescheduling. By following these tips, you can ensure your voice is heard in the ongoing discussions. Remember to share this guide with fellow advocates to strengthen our collective impact in shaping cannabis rescheduling policy.
Taking the Long View – Strategic Facility Design Considerations for the Schedule III Era
In the dynamic landscape of the cannabis industry, regulatory changes can significantly impact how businesses operate and plan for growth. The recent proposal to reschedule cannabis from Schedule I to Schedule III has sparked discussions across the industry, particularly regarding facility design and operational strategies. This blog dives into key insights from the National Cannabis Industry Association’s webinar on “Taking the Long View – Strategic Facility Design Considerations for the Schedule III Era,” highlighting expert advice and practical recommendations for stakeholders navigating these changes.
The webinar, hosted by Brian Gilbert of the NCIA, served as a crucial platform for industry professionals to explore the implications of cannabis rescheduling on facility design and operations. The session focused on four main pillars: understanding tax changes, enhancing operational efficiency, promoting sustainable growth, and implementing practical strategies to navigate regulatory shifts.
Key Takeaways
1. Policy and Tax Implications
The discussion, led by Shawn Cooney of Cloud Farming, Chair of NCIA’s Facilities Design Committee, underscored the potential financial benefits for businesses following cannabis rescheduling (00:03:41). A highlight was the exploration of Section 280E, which could offer substantial tax savings once regulatory changes are implemented. Jeremy Schlicher of Urban Green Design expanded on these insights, offering strategic financial planning advice aimed at leveraging tax incentives to reinvest in facility improvements (00:07:21).
2. Operational Efficiency and Sustainability
Efficiency in energy management emerged as a critical theme throughout the webinar. Experts emphasized the importance of conducting energy audits and adopting efficient lighting and HVAC systems (00:10:18). These measures not only reduce operational costs but also align with sustainability goals crucial for long-term viability in the industry. Practical recommendations tailored to cultivation, manufacturing, and retail sectors were discussed to optimize workflow efficiencies and regulatory compliance (00:15:10).
3. Cultivation Methods and Environmental Considerations
Kim Kannapel of Modern Thermal Design provided invaluable insights into cultivation methods and environmental sustainability. The webinar highlighted the viability of various methods—indoor, greenhouse, and outdoor—each catering to different market segments and regulatory landscapes. The discussion underscored the role of climate and local regulations in shaping cultivation decisions (00:37:28), emphasizing the need for adaptable strategies that prioritize energy efficiency and environmental stewardship.
As Chair of NCIA’s Facility Design Committee, Shawn Cooney brought deep regulatory expertise to the discussion. He emphasized the importance of holistic sustainability practices and compliance with evolving regulatory frameworks. His insights into tax implications and strategic planning resonated with participants seeking clarity on financial strategies post-rescheduling (00:25:32).
Kim Kannapel’s contributions focused on environmental sustainability within cannabis cultivation. Her expertise in optimizing cultivation methods highlighted the interconnectedness of environmental stewardship and operational efficiency. By advocating for adaptive strategies, Kim encouraged businesses to consider long-term environmental impacts when designing and expanding their facilities (00:37:28).
A staunch advocate for the innovative triple bottom line approach, Jeremy Schlicher brings a wealth of knowledge to the discussion on strategic facility design in the cannabis industry. He emphasizes the integration of economic prosperity, environmental stewardship, and social responsibility in every aspect of facility planning and operations. Jeremy’s insights into maximizing operational efficiency through sustainable practices, such as energy audits and efficient HVAC systems, underscore his commitment to reducing environmental impact while enhancing business profitability.
Importance of Participating in the Public Comment Period
Participating in the public comment period is crucial for shaping the future regulatory landscape of the cannabis industry. The Department of Justice’s proposal to reschedule cannabis presents a unique opportunity for stakeholders to voice their perspectives and influence policy decisions. NCIA has launched a dedicated tool to streamline this process, making it easier for industry professionals to submit informed comments.Submit your comment here.
Recap of Episode I & II
Episode I: Understanding Section 280E and its Impact on Cannabis Businesses
In Episode I, the focus was on the financial and tax implications of rescheduling cannabis. Section 280E was a major topic, with discussions centered on how the rescheduling could lead to significant tax savings and the importance of strategic financial planning for businesses to maximize these benefits.
Episode II: Cannabis Rescheduling’s Impact on Research and Safety
Episode II delved into the implications of cannabis rescheduling on research and safety protocols. This session emphasized the potential for increased research opportunities and the necessity for businesses to stay ahead of regulatory changes to maintain compliance and ensure product safety.
Looking Ahead: Preview of Episodes 4 & 5
Episode IV: Navigating Insurance and Risk Management in the Schedule III Era
Join us for the fourth episode of NCIA’s multi-part #IndustryEssentials webinar series, “Navigating Insurance and Risk Management in the Schedule III Era,” led by our Risk Management & Insurance Committee. This session delves into the evolving landscape of cannabis insurance and risk management, highlighting the opportunities and challenges presented by the rescheduling of cannabis to Schedule III.
Date: Tuesday, July 9th, 2024 Time: 3:00 PM EST – 4:00 PM ET
Episode V: Cannabis Manufacturing in the Schedule III Era
Building on the insights from our first four episodes, join us for the fifth installment of NCIA’s #IndustryEssentials multi-part webinar series. This session, led by our expert Cannabis Manufacturing Committee, will focus on the profound impacts and implications of rescheduling cannabis on the manufacturing sector. As we navigate these unprecedented changes, our panel of industry leaders will provide critical insights and practical guidance to help your business adapt and thrive in this new landscape.
Advancing the Industry Together: NCIA’s Mission in Action
The overarching theme of this series is to equip cannabis industry stakeholders with the knowledge and strategies needed to navigate the complex landscape of regulatory changes. By understanding the financial, operational, and research implications of cannabis rescheduling, businesses can better position themselves for sustainable growth and success. Each episode builds on the previous one, creating a comprehensive resource for industry professionals to stay informed and proactive in their planning and operations.
The webinar “Taking the Long View – Strategic Facility Design Considerations for the Schedule III Era,” offered a comprehensive roadmap for stakeholders navigating regulatory changes in the cannabis industry. By addressing tax implications, promoting operational efficiency, and advocating for sustainable growth practices, the session equipped participants with actionable strategies to thrive amidst evolving regulatory landscapes.
Call to Action
As the industry continues to evolve, staying informed and proactive is crucial for cannabis businesses. Explore NCIA’s resources, including upcoming webinars and educational materials, to deepen your understanding of regulatory changes and strategic facility design considerations. Engage with industry peers and experts to share insights and best practices that drive sustainable growth and operational excellence.
For those not yet members, consider joining the National Cannabis Industry Association (NCIA) to unlock unmatched benefits, resources, and access. Membership provides exclusive opportunities to influence industry standards, gain regulatory insights, and network with industry leaders. Join NCIA today to leverage these benefits and stay ahead in the competitive cannabis market.
Committee Insights: Taking the Long View – Strategic Facility Design Considerations for the Schedule III Era
Join the Facilities Design Committee as they delve into the implications of cannabis rescheduling on facility design and operations. This session will explore the key areas that cannabis businesses should focus on and highlight the potential benefits of implementing a strategic plan for facility and equipment management to enhance operational efficiency and ensure long-term viability.
Learning Objectives:
• Understanding the Impact of Tax Changes: Explore the definitive changes brought about by tax regulations, particularly Section 280E, and how they affect the financial landscape of cannabis businesses. Gain insights into leveraging capital influx resulting from tax changes and identify opportunities for strategic investment in facility and system upgrades to drive growth and ensure compliance scalability.
• Maximizing Operational Efficiency through Facility Planning: Learn how to navigate the complexities of facility design and operations in light of changing regulations and market demands. Discover strategies for optimizing facility layout, equipment selection, and workflow management to enhance productivity, reduce costs, and mitigate compliance risks.
• Navigating the Path to Sustainable Growth: Explore the intersection between facility design, sustainability, and long-term business success. Understand how to integrate sustainability principles into facility planning and construction, leveraging resources such as land procurement best practices and investments in energy-efficient infrastructure to promote environmental stewardship and operational resilience.
• Bringing Concepts to Reality: Gain insights into the timeline for translating capital influx into tangible construction projects and facility upgrades. Explore real-world examples and case studies to understand the practical implications of strategic facility planning and the timeline for implementation.
Cannabis Rescheduling Impact on Research and Safety: Insights from NCIA Webinar
In the second episode of NCIA’s new multi-part #IndustryEssentials webinar series, titled “Advancing Cannabis Science: Research Opportunities and Safety Post-Rescheduling,” we delved into the significant changes and opportunities that would emerge following the rescheduling of cannabis to a Schedule III drug. Led by NCIA’s Scientific Advisory Committee, this session provided a comprehensive overview of the cannabis rescheduling impact on research and safety in the evolving cannabis landscape.
Setting the Stage | Panelist & Moderator Introductions
The discussion began with an overview of the Controlled Substances Act and the historical context of cannabis scheduling. The panelists highlighted the journey from Schedule I to Schedule III, emphasizing the critical changes that come with this shift, particularly in terms of research opportunities and regulatory frameworks.
Cassin Coleman provided an in-depth explanation of the rescheduling process, focusing on the 8-factor analysis used to determine the appropriate schedule for a substance. This analysis includes factors such as the drug’s potential for abuse, scientific evidence of its pharmacological effects, and the current scientific knowledge regarding the substance.
The panelists explored the new landscape for researchers, discussing the relaxation of stringent requirements that previously hampered cannabis research. They highlighted the potential for increased federal funding, the ability to conduct more comprehensive studies, and the removal of barriers that have long impeded scientific progress in the field.
The conversation shifted to the practical implications for researchers and industry professionals. The panelists shared insights on how to prepare for the new opportunities afforded by rescheduling, including advice on setting up compliant research protocols and leveraging the new regulatory environment to advance scientific inquiry and innovation.
Kenya Alexander and Dr. Cynthia Shelby-Lane emphasized the importance of ensuring diverse representation in cannabis research. She discussed strategies to include underrepresented communities in studies and the critical need for research that addresses the unique needs and experiences of these populations. This part of the discussion further underscored the cannabis rescheduling impact on research and safety.
The panel addressed the broader social implications of cannabis rescheduling, particularly the need to heal the damage caused by the War on Drugs. They discussed the importance of bridging the communication gap between researchers and communities and ensuring that the benefits of cannabis research are equitably distributed.
Audience Q&A
The session included a robust Q&A segment, where the panelists answered a wide range of questions from the audience:
In their closing remarks, the panelists reiterated the importance of embracing the new opportunities presented by cannabis rescheduling. They encouraged researchers, product developers, and industry stakeholders to stay informed and proactive in adapting to these changes.
The session concluded with a heartfelt thanks to all participants and a reminder of the value of NCIA membership. By supporting the organization, members help drive critical reforms and advancements in the cannabis industry, ensuring a brighter future for all stakeholders.
This episode of NCIA’s #IndustryEssentials webinar series provided essential insights into cannabis rescheduling impact on research and consumer safety. As we navigate these changes, NCIA remains committed to supporting our members and advocating for a more inclusive, equitable, and scientifically advanced industry. Stay tuned for future episodes and continue to engage with our expert-led discussions.
Join us for Episode III, “Committee Insights: Taking the Long View – Strategic Facility Design Considerations for the Schedule III Era,” on Tuesday, June 18th at 3PM ET / 12PM PT. Experts from NCIA’s Facilities Design Committee will discuss the implications of cannabis rescheduling on facility design and operations, focusing on strategies for optimizing facility layout, equipment selection, and workflow management. Learn how to leverage tax changes and sustainability principles to enhance operational efficiency and ensure long-term viability. Don’t miss this opportunity to gain valuable insights for your cannabis business. Register now!
Start Making Sense: What Does Schedule III & Section 280E Mean for Me?
Rescheduling cannabis signifies a monumental shift for our industry, specifically presenting a potential pathway to alleviate the burdens imposed by Section 280E. In a new multi-part #IndustryEssentials webinar series, led by experts from our 14 member-led Committees, NCIA will provide a comprehensive analysis of the immediate and long-term impacts on different sectors within the cannabis industry.
In our debut session, led by the Banking & Financial Services Committee, we provided invaluable insights into the transformative implications of rescheduling cannabis to a Schedule III drug and its consequent impact on Section 280E of the Internal Revenue Code. In “Schedule III & Section 280E: What Does It Mean for Me?” broadcast LIVE on Thursday, May 30th, we explored the game-changing potential of this shift, offering actionable insights for businesses navigating the evolving regulatory environment.
Neil Rosenfield, CPA:Provided insights into the significance of comprehending and championing advocacy organizations to address regulatory hurdles.
Steven Gotsdiner, CPA: Illuminated accounting requirements tailored to cannabis businesses, drawing attention to the nuances across various states.
Eric Kaufman, COO: Shed light on the hurdles encountered by cannabis enterprises, while also elucidating the potential benefits stemming from regulatory changes.
Aaron Smith, NCIA: Emphasized the pivotal role of industry participation in policy reform endeavors, highlighting NCIA’s instrumental role.
Among the topics explored during the webinar was the profound impact of rescheduling cannabis on federal legality, state and local tax obligations, and the broader regulatory landscape. With cannabis poised to transition to Schedule III, businesses are poised to embrace newfound opportunities while confronting challenges inherent in navigating this regulatory terrain.
Neil Rosenfield of BakerTilly USA underscored the significance of contributing to and championing advocacy organizations to effectively address regulatory hurdles. Aaron Smith echoed this sentiment, emphasizing the pivotal role of industry participation in policy reform endeavors, highlighting NCIA’s instrumental role in spearheading these changes.
Another focal point of discussion revolved around the ramifications of rescheduling on tax obligations and deductions governed by Section 280E. The panelists provided invaluable insights into the implications for tax planning, including adjustments to tax bills, cash flows, and essential updates to accounting records and charts of accounts.
Steven Gotsdiner of HBK CPAs illuminated accounting requirements tailored to cannabis businesses, drawing attention to the nuances across various states. Eric Kaufman, COO of FundCanna, shed light on the hurdles encountered by cannabis enterprises, while also elucidating the potential benefits stemming from regulatory changes, such as managing surplus cash flows and preparing for shifts in interstate commerce.
Eric Kaufman explored whether rescheduling cannabis to Schedule III would reduce the cost of capital for operators and recommended strategies for deploying increased cash flows to scale and grow businesses effectively.
The webinar also delved into the anticipated timeline for these regulatory shifts, offering insights into potential implementation trajectories spanning from 2023 to 2025. Strategies for navigating diverse timelines and regulatory fluxes were discussed, equipping businesses with the tools needed to adapt and flourish in an ever-evolving landscape.
Thanks to the informed engagement of our audience members, a cornerstone of what makes our webinar series so valuable for members, the discussion touched on the definition of “Good Accounting Practices” and whether this includes Generally Accepted Accounting Principles (GAAP). The panelists also speculated on the possibility of new excise taxes replacing 280E and the potential impacts on federal protections like bankruptcy and IPOs.
As the program was extended in order to answer all of our audience questions, the session concluded with insights into how these regulatory changes might affect the CBD and hemp industries. The panelists emphasized the importance of staying informed and adapting to varying state-level requirements.
As the cannabis industry continues its evolution, proactive engagement with regulatory changes remains paramount for business success. The insights shared during NCIA’s #IndustryEssentials webinar series offer a compass to navigate the labyrinth of regulatory complexities and position businesses for enduring prosperity. By fostering active engagement and advocacy, cannabis enterprises can shape a regulatory landscape conducive to industry growth and development.
To continue facilitating these crucial dialogues amongst operators, regulators, and stakeholders, NCIA relies on the support of dedicated members like you. Join NCIA today to access exclusive resources, stay informed about the latest industry developments, and be part of a community committed to driving positive change in the cannabis industry.
Supporting advocacy efforts is integral to driving meaningful change in the cannabis industry. By becoming an NCIA member, you’re not just investing in your business’s success; you’re also supporting initiatives that shape the future of the industry. Together, we can amplify our collective voice and effect tangible change.
As we conclude this recap of our insightful session on Schedule III and Section 280E, we’re thrilled to announce the next episode in NCIA’s #IndustryEssentials multi-part webinar series: “Committee Insights: Advancing Cannabis Science: Research Opportunities and Challenges Post-Rescheduling.” Led by our esteemed Scientific Advisory Committee, this episode promises to explore the exciting realm of scientific research and consumer safety in the wake of cannabis rescheduling.
Join us for an engaging discussion with industry experts, gain valuable insights, and shape the future of cannabis science and consumer safety. Register now to reserve your spot and be part of the conversation!
Breaking Down the Recent Cannabis Rescheduling Recommendation
For more than fifty years, the federal government has maintained that cannabis is a Schedule I drug, meaning that it has a high potential for abuse and no accepted medical value. That changed last week (somewhat) when the Department of Health and Human Services (HHS) recommended to the Drug Enforcement Administration (DEA) that cannabis be placed in Schedule III, meaning that it has moderate to low abuse potential, a currently accepted medical use, and a low potential for psychological dependence.
Why now?
In October 2022, the Biden Administration announced that it would ask the Secretary of HHS and the Attorney General to initiate the administrative process to review expeditiously how marijuana is scheduled under federal law. As the Brookings Institute outlined years ago, the Executive process for rescheduling is much more complex than the Legislative path.
It’s no secret that the presidential election is barely more than a year away, and the President seems to be looking to make good on his campaign promise to reform the nation’s marijuana laws.
What does this mean?
First off, it’s critical to note that HHS’ recommendation to DEA is just that: a recommendation. It is non-binding. The DEA may come to the same conclusion that HHS did, but is not required to.
If cannabis is moved to Schedule III of the Controlled Substances Act, one positive outcome would be that 280E would no longer apply to plant-touching businesses, removing an incredibly punitive and debilitating provision in the tax code.
According to NCIA’s board chair emeritus, Khurshid Khoja, Esq., “…it’s important to remember that rescheduling would not apply the federal Food Drug and Cosmetic Act (FDCA) to marijuana for the first time—it applies right now, and like the federal Controlled Substances Act (CSA), would continue to apply after rescheduling. But absent any statutory authority permitting FDA to do otherwise, the FDCA would continue to apply after descheduling too, just as it does to hemp products.”
Others claim that the shift to Schedule III would have minimal impact on businesses and individuals. Here at NCIA, we’re cautiously optimistic but recognize that moving cannabis to schedule III could have some limited benefit but does nothing to align federal law with the 38 U.S. states which have already effectively regulated cannabis for medical or adult use.
What now?
Now that HHS has made their recommendation, the DEA will begin its scheduling review process.
Many are divided about what a move to Schedule III would actually look like. Yes, there would be the elimination of 280E, but what about enforcement priorities? Interstate commerce? Criminal penalties? There are so many unknowns.
NCIA has previously produced a common sense, workable roadmap for that federal comprehensive reform and provided detailed feedback on legislative efforts. It is time for Congress to follow the will of the American people. Don’t get me wrong, there’s no doubt that this recommendation is a step in the right direction and is long overdue. But we can’t lose sight of the ultimate goal: removing cannabis from the Controlled Substances Act entirely.
Have questions?
Join NCIA on September 14 at 1 pm ET for an engaging webinar where we will unpack all your questions! Register today and don’t miss your chance to hear more about what this means for the cannabis industry and your business.
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