Committee Insights | 12.14.22 | Defining the Conversation: Minor, Novel & Synthetic Cannabinoids

NCIA’s #IndustryEssentials webinar series is our premier digital educational series featuring a variety of interactive programs allowing us to provide you timely, engaging and essential education when you need it most.

In this edition of our NCIA Committee Insights series, originally aired on December 14 and produced in collaboration by NCIA’s Cannabis Manufacturing Committee, Scientific Advisory Committee and Hemp Committee we introduced and framed the myriad regulatory, scientific, linguistic, and ethical issues that come with the rise of minor, novel, and synthetic cannabinoids.

Learning Objectives:
• Understand the role of minor, novel, and synthetic cannabinoids in the cannabis industry and the unique issues relating to their current status.

At the conclusion of the discussion our panel hosted a lengthy moderated Q&A session so our network could get all their burning questions answered by these leading manufacturing, biochemical, and legal professionals from the hemp and cannabis industries.

Panelists:
Scott Seeley
Biochemist and Patent/TM Attorney @Eastgate IP

Cassin Coleman
Founder
Cassin Consulting

Keith Butler
CEO
OP Innovates / Hemp Mellow

Paul Coble
Intellectual Property Attorney
Harris Bricken Sliwoski LLP

There is more to cannabis than THC and CBD. As our understanding (and commercialization) of cannabis evolves, new compounds like CBG, delta-8-THC, THCv, and others are coming onto the scene. These various “minor” cannabinoids, however, bring with them a host of new issues.

Over the next few months this collaboration will continue to explore these issues with various subjects ranging from basic and advanced overviews of these molecules, regulatory recommendations, risk management and compliance concerns all the way to consumer and manufacturer safety. Stay up to date and be the first to know when additional follow-up sessions are scheduled by signing up via the form below.

Keep Me Updated: http://bit.ly/3Y5AfAp

This is the first of five in a multi-part series of #IndustryEssentials webinars. You can watch Parts I-V at the links below.

Defining the Conversation: Minor, Novel & Synthetic Cannabinoids (Part I): https://bit.ly/3D2LReB

Meet the Minors (Part II): https://bit.ly/3qUD8Ip

From Lab to Label: Safeguarding Consumers in the Cannabinoid Product Landscape (Part III)https://bit.ly/3Xc9Lx6

Know Your Hazards – Occupational Health and Safety Considerations in Cannabinoid Ingredient Manufacturing (Part IV)https://bit.ly/3rEUeKP

Concepts for Regulatory Consideration – Shifting the Conversation from “Cannabis vs. Hemp” to “The Cannabinoids” (Part V): https://bit.ly/3P3r5AW

Committee Insights | 11.29 | The Pathway to Greater Equity in New York’s Adult Use Cannabis Market

In this edition of our NCIA Committee Insights series, originally aired on November 29 and produced NCIA’s Diversity, Equity & Inclusion Committee, we held a lively discussion to present the official recommendations jointly submitted to the New York Office of Cannabis Management in Fall 2022.

Since early 2022, NCIA and our DEI Committee has been conducting an ongoing roundtable discussion consisting of multiple national and New York based cannabis social equity and industry organizations to assess and provide feedback regarding rules and regulations. We also covered the PIES Program, which is an innovative program that draws on the lessons learned from other states to create a streamlined solution with true DEI front and center.We also covered the PIES Program, which is an innovative program that draws on the lessons learned from other states to create a streamlined solution with true DEI front and center.

Learning Objectives:
• Learn about NCIA’s New York Social Equity Roundtable, a collaboration of multiple National and New York based cannabis social equity and industry organizations

• Gain insights into how New York is rolling out its Adult Use Cannabis market with regards to Social Equity and Justice Involved individuals

• Understand how our recommendations would impact New York’s market if implemented, and Identify opportunities for organizations and the state agency to work collaboratively

Panelists:
Frederika McClary Easley
Director of Strategic Initiatives
The People’s Ecosystem

Scheril Murray Powell, Esq.
Chief Operating Officer
The JUSTÜS Foundation

Maur Stringer
Founder, Owner, CEO
The Magi Tree LLC

Cynthia L. Mompoint
Black and Brown Economic Power in Cannabis

Adrian Adams, Ed.D.
CEO
Ontogen Botanicals

Mike Lomuto (Moderator)
Diversity, Equity, and Inclusion Manager
National Cannabis Industry Association

Sponsored By:

Committee Insights | 12.7.22 | How To Use A Marketing Mindset To Raise Capital For Your Cannabis Company

NCIA’s #IndustryEssentials webinar series is our premier digital educational series featuring a variety of interactive programs allowing us to provide you timely, engaging and essential education when you need it most.

In this edition of our NCIA Committee Insights series, originally aired on December 7 and produced by NCIA’s Marketing & Advertising Committee, our panel of cannabis finance specialists, leading operators and capital raising experts will guide you through best marketing practices and considerations to deploy when fundraising in the cannabis industry from a marketing perspective.

Learn tips and tricks and do’s and don’ts from marketing pro’s and industry insiders to best position your company to get the attention of investors in the current market conditions just as you’ve done when targeting consumers.

Panelists:

Christine de la Rosa
CEO & Co-Founder
The People’s Ecosystem

Jeff Arbour
Founder & CEO
Nana & Pop

Erin Gore
Founder & CEO
Garden Society

Jake Kuczeruk (Moderator)
Cannabis Consultant
Blue Sky Wellness

Video: NCIA Today – Thursday, November 3, 2022

NCIA 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 other Thursday on Facebook for NCIA Today Live.

Service Solutions | 10.26.22 | Show Me the Money – The Current State of Cannabis Lending

NCIA’s Service Solutions series is our sponsored content webinar program which allows business owners the opportunity to learn more about premier products, services and industry solutions directly from our network of established suppliers, providers and thought leaders.

In this edition originally aired on Wednesday, October 26, 2022 we were joined by the experts from cannabis-focused financial institutions FundCanna, Safe Harbor Financial, and AVANA Companies to dive deep into the current state of cannabis lending with leading industry journalist John Schroyer of Green Market Report.

A decade after California and Colorado became the first adult use states, the regulated U.S. cannabis market encompasses over 70,000 cannabis-related businesses. Shockingly, most of those businesses still lack easy access to debt and other forms of growth and operating capital. From federal prohibitions and the impact of IRS regulation 280e, to state and local taxation issues, the costs of operating a regulated cannabis company continue to remain nearly unendurable.

Learn what may change in the coming six to 12 months so you’ll know how to access debt capital most cost-effectively in this ever evolving environment. No matter your place in the industry or the supply chain from cultivators, manufacturers, vendors, suppliers, distributors and retailers this conversation will provide the insights to meet your financial needs.

At the conclusion of the discussion our panel hosted a moderated Q&A session to provide NCIA members an opportunity to interact with leading minds from the financial services space, join today to contribute to future conversations!

Panelists:

Adam Stettner
Founder & CEO
FundCanna

Sundie Seefried
Founder and CEO
Safe Harbor Financial

Sanat Patel
Co-Founder and CEO
AVANA Companies

John Scroyer
Senior Reporter
Green Market Report

Session Chapters & Discussion Outline

00:00 – Session Intro

01:09 – Moderator Intro

01:45 – Panelists Intro

02:13Equity vs. Debt: With equity dried up, should cannabis companies be looking at debt financing to grow now?

07:28Equity vs. Debt: What do borrowers need to do before approaching a debt provider (vs. an equity provider)?

13:25Equity vs. Debt: What can cannabis companies or entrepreneurs do to improve their overall credit worthiness prior to seeking capital?

17:16 – How has the interest rate increases by the Federal Reserve impacted capital markets (and the industry at large) in 2022?

26:07Audience Q&A: “If there’s “no reason not to have banking” for your cannabis business how can I easily (and inexpensively) establish and maintain a compliant bank account?”

28:56Lending: What significant lending challenges are your clients currently facing within the industry?

33:56Lending: What advice can you provide business owners for evaluating lenders that you should (or shouldn’t) work with and tips for avoiding predatory lending practices?

39:05Cannabis Reform: What impact do you expect President Biden’s recent announcement will have on the industry?

49:32Audience Q&A: “Are your financial institutions planning to offer lending and banking services in New York, New Jersey and other new markets?”

51:42Audience Q&A: “With the mindset of “Investors are betting on the Jockey not the Horse.” What type of CEO or founding team would be a red flag or not a viable investment?”

55:19Audience Q&A: “How can I start to shift my retail company from being primarily a cash-only business?”

58:00 – Final Thoughts & Contact Information

1:01:24 – Session Outro & Upcoming Events

1:05:03 – NCIA Member Appreciation Credit Sequence

 

Sponsored By:

Claybourne Co. Takes Home the NCIA’s Best of 420 Award Live at the Clio Cannabis Awards Ceremony in Las Vegas

 

Just two short weeks ago, the NCIA’s Marketing & Advertising committee proudly announced Claybourne Co. as the winner of the second annual Best of 420 Award for the brand’s “Rolling with Claybourne Road to 420” campaign live from the MGM Grand in Las Vegas during MJ Unpacked.  

During a wonderful evening hosted by Michael Kauffman, MAC member and Executive Director of the Clio Music and Clio Cannabis programs, Kary Radestock, MAC committee chair, presented the Claybourne Co. team with a Clio trophy recognizing the brand’s creativity, community impact, and the overall success of their “Stash and Grab” merch drops spread throughout California highlighting the launch of the brand’s statewide delivery program. 

Claybourne Co. celebrated California locations which have very few dispensaries, also known as “Pot Deserts,” and gave the cannabis community an opportunity to come together. 

Photo by David Becker/Invision for Clio Cannabis Awards/AP Images)

The MAC committee had many in attendance including Vice Chair Eric Becker of MadisonJay Solutions, Chair Kary Radestock of Hippo Premium Packaging, committee member and Clio Cannabis Executive Director Michael Kauffman, Committee Organizer Allison Disney of Receptor Brands, Best of 420 subcommittee lead Tara Coomans of Avaans PR and member Vanessa Valdovinos of HUSH.  

Congratulations to all the nominees and we look forward to celebrating the “Best of 4/20” again in 2023! Stay tuned for more details to be announced in the coming months as we’re excited to continue providing this platform to elevate the industry’s most successful, creative, and community-focused campaigns next year. 

If you’re interested in contributing to these efforts (and other special projects like it) then we invite you to join the association and apply to participate on one of our 14 member-led committees this coming term. Complete details will be released later month and applications to apply for the 2022-2023 term will open up in early December for all annual NCIA members in good standing.

Don’t forget! Blooming and Evergreen members are automatically guaranteed a seat (single or multiple) on one of our 14 sector committees. If you want to take your industry involvement to the next level, now is the time. Don’t pass up this opportunity to enhance your team’s leadership skills and expand their professional networks all while providing the opportunity to effect change and develop best practices to shape the future of our industry.

Photo by David Becker/Invision for Clio Cannabis Awards/AP Images)

What happens in Vegas certainly stays in Vegas but if you’re really looking to relive the magic then you can view the full album of 2022 Clio Cannabis Award winners here. Plus learn more about the other 2022 Speciality Award recipients honored at the event including NCIA’s Best of 4/20 marketing campaign contest here.

Thank you once again to the Clio organization, all of the volunteers who worked to put this together, sponsors Cannabis Insurance Wholesalers, Hippo Premium Packaging, and Receptor Brands, along with media sponsor Honeysuckle MagazineWe truly can’t thank everyone involved enough for elevating this program to new heights this year.

Service Solutions | 9.27.22 | The Devil is in the Details: Claiming Your Employee Retention Credit as a Cannabis Business

NCIA’s Service Solutions series is our sponsored content webinar program which allows business owners the opportunity to learn more about premier products, services and industry solutions directly from our network of established suppliers, providers and thought leaders.

In this edition originally aired on Tuesday, September 27, 2022 we were joined by the experts from ERT Credit for an exclusive webinar outlining how cannabis businesses can take advantage of The Employee Tax Credit (or ERC) which has currently only been claimed by a small fraction of cannabis businesses, and most importantly, as a payroll tax credit is not subject to Section 280E.

Think your cannabis-related business does not qualify for COVID-19 relief funds worth up to $26,000 per employee.? You’ll leave the session with a roadmap for next steps to determine eligibility and maximize your claim  so you don’t miss out on a potentially guaranteed refund worth hundreds of thousands of dollars and in some cases millions.

At the conclusion of the discussion our panel hosted a moderated Q&A session to provide NCIA members an opportunity to interact with leading minds from the cannabis accounting and technology space, join today to contribute to future conversations!

Presentation Slide Deck: [View/Download Here]

Panelists:

Jordan Anderson
Founder & ERC Expert
ERT Credit

Elizabeth Haffner
Champion of Client Success
ERT Credit

Kash Badami
Chief Operating Officer
ERT Credit

Session Chapters & Discussion Outline

00:00 – Webinar Opening

01:47 – Session Intro

06:24 – Panel Intro / Agenda

08:11 – What is the ERC?

12:45 – Eligibility (A Crucial Step to Claiming the Credit)

19:18 – Credit Maximization (A Nuanced & Difficult Task)

22:18 – What About 280E?

24:09 – Challenges

34:26 – ERC vs. PPP

38:20 – Rewards of Using ERT.Credit

40:06 – Q&A

40:46 – Audience Q&A (If your business is still operating – what are the taxes due on the tax credit?)

42:04 – Audience Q&A (I was told that ERC money is not available for the cannabis industry due to 280e. How are you navigating that compared to others trying to provide the same services?)

44:31 – Audience Q&A (Does this apply to cultivation facilities also?)

46:42 – Audience Q&A (What if we apply and don’t receive our money or we are denied the credit?)

48:09 – Audience Q&A (What if my accountant/lawyer says I don’t qualify?)

49:41 – Audience Q&A (How can I find more details on how to navigate the 280e concerns?)

50:58 – Audience Q&A (So if you went out of business before or soon after getting the tax credit you would not have any (or minimal) tax impact from taking the tax credit?)

53:24 – Audience Q&A (Do I have to spend the money on my payroll? Or can I use it towards my other business expenses? Any other restrictions?) 54:26 – Audience Q&A (So is this a credit for my company towards next year or do I get an actual check like a refund?)

56:32 – Contact Info

58:29 – Final Thoughts

01:03:24 – Session Outro

01:05:28 – NCIA Lobby Days 2023 Member Appreciation

Sponsored By:

Service Solutions | 6.22.22 | Enforcing Cannabis Contracts with Alternative Dispute Resolution

NCIA’s Service Solutions series is our sponsored content webinar program which allows business owners the opportunity to learn more about premier products, services and industry solutions directly from our network of established suppliers, providers and thought leaders.

In this edition originally aired on Wednesday, June 28, 2022 we were joined by the International Institute for Conflict Prevention and Resolution (CPR) to discuss the benefits of using alternative dispute resolution (ADR) methods (including arbitration and mediation) in cannabis contracts, thus bypassing the courts.

The cannabis industry continues to grow rapidly, both in the United States and globally. However, cannabis companies face issues when entering into contracts that they hope to enforce. Because the federal Controlled Substances Act prohibits cannabis sales as a matter of federal law, many courts will not enforce a contract between cannabis companies, even if state law permits the legal sale of cannabis. Therefore, cannabis investors, businesses, and those who do business with them need a tool that makes their contracts enforceable.

Benefits of using ADR methods include greater enforceability plus faster speed to a decision, decision-makers with industry expertise, privacy and confidentiality, and the parties’ ability to create a process to fit specific needs and timelines. Participants will also learn how to include an ADR clause in their contracts, so they can take advantage of these benefits.

Panelists:

Mia Levi
Vice President of Global Development for Dispute Resolution
International Institute for Conflict Prevention and Resolution (CPR)

Robert Copple
President @Copple & Associates PC

Sponsored By:

 

 

 

 

 

 

 

 

Want to know more about the products and services offered by International Institute for Conflict Prevention? Head to https://www.cpradr.org/dispute-resolution-services to learn more today!

Positioned for Success – Highlights from the Insights & Influencers: NY Opportunity Tour

Any cannabis insider knows that New York is poised to become the next cannabis epicenter since legalizing last year. As such there is naturally incredible interest in learning about the business opportunities, how to best position yourself for success, as well as networking with potential future partners and clients. To meet these needs for our members and supporters, NCIA hosted the “Insights & Influencers: NY Opportunity Tour”, a weeklong series of events across New York featuring stops in Rochester, Albany and Brooklyn in partnership with founding members Canna Advisors, a trusted advisor to cannabis entrepreneurs who are starting or expanding a cannabis business.

(C) Sam C. Long / Honeysuckle Media, Inc.

Returning with our first in person events of the year, we couldn’t have been more thrilled to meet face-to-face with nearly 150 attendees who were either current or prospective business owners operating in New York and interested in expanding their operations or trying to break into the industry. With stops in Rochester, Albany, and New York City, the events brought together attendees from across the Empire State to not only learn about the developing regulatory landscape and opportunities to get involved with the burgeoning cannabis industry, but also the latest developments with NCIA’s work on federal cannabis policy.

(C) Sam C. Long / Honeysuckle Media, Inc.

Speakers were NCIA CEO and co-founder Aaron Smith and representatives from Canna Advisors including ​​Bob Wagener, Vice President of Real Estate Development; Sumer Thomas, Director of Regulatory Operations; and Vincent DiMichele, Regulatory Content Manager. During the hour long presentation, numerous topics were covered that were relevant to business owners in the cannabis industry such as:

• The possibility of federal legalization and the work NCIA is doing to ensure small — or “main street” — cannabis businesses have a seat at the table as legislation is written

(C) Sam C. Long / Honeysuckle Media, Inc.

• Benefits of starting the license application process early and the importance of community engagement efforts

(C) Sam C. Long / Honeysuckle Media, Inc.

• Understanding zoning requirements and ensuring your business can operate in the best location possible

(C) Sam C. Long / Honeysuckle Media, Inc.

• Developing staffing needs and protocols so the team behind your operations is positioned for success and growth

• Engaging in public comment periods including the New York Office of Cannabis Management’s (OCM) current 60 day comment period open now through August 15 surrounding regulations for packaging, labeling, marketing, advertising, and laboratory testing of adult-use cannabis

Throughout the tour, representatives from the OCM were on-site to chat with participants, answer questions that attendees had, and generally get to know those interested in owning or operating a cannabis related business in the state. We are proud to facilitate those connections at our events time and time again, so that regulators and business owners alike can meet in person to build relationships which in turn helps break down the barriers to communication down the line.

Nevillene White, Manager of Community Relations and External Affairs for OCM, joined our Albany gathering right next door to The Egg performing arts venue located inside of Empire State Plaza. Throughout she was able to supplement the presentation by providing comments directly to crowd feedback during updates on the licensing process in the Capitol.

(C) Sam C. Long / Honeysuckle Media, Inc.

Trivette Knowles, Press Officer and Manager of Community Outreach for the OCM, was present in Brooklyn and commented ”We need more events like this to show people that cannabis touches all walks of life,” he said. “It’s part of the culture.”

(C) Sam C. Long / Honeysuckle Media, Inc.

NCIA’s Aaron Smith closed out each of the events with a final call to action for everyone in the room: Contact New York’s U.S. Senators Chuck Schumer and Kirsten Gillibrand to urge them to support the SAFE Banking Act and bring it to the floor for a vote. As the Majority Leader in the Senate, Sen. Schumer has the power to allow the legislation to be voted on but has not done so, stating a preference for more comprehensive legislation. Smith also discussed the Cannabis Administration and Opportunity Act (CAOA), which addresses federal legalization on a broader scale. A final version of that bill is still yet to be introduced however, and passage of the SAFE Banking Act would provide protections to financial institutions working with cannabis business and would have a positive impact on the cannabis industry while support for CAOA and comprehensive reform builds in Congress.

Of course we encourage anyone reading to take this call to action even further, and plan to join NCIA at our upcoming 10th Annual Cannabis Industry Lobby Days from September 13-14 in Washington, D.C. Find out more details and register online here.

We can’t thank all our members and supporters who attended the events on our “Insights & Influencers: NY Opportunity Tour” enough, as well as our co-hosts, Canna Advisors, for making these events possible!

 

 

For additional coverage, be sure to check out the piece published by Honeysuckle Magazine, our exclusive media partners for the events.

(C) Sam C. Long / Honeysuckle Media, Inc.
(C) Sam C. Long / Honeysuckle Media, Inc.
(C) Sam C. Long / Honeysuckle Media, Inc.
(C) Sam C. Long / Honeysuckle Media, Inc.
(C) Sam C. Long / Honeysuckle Media, Inc.
(C) Sam C. Long / Honeysuckle Media, Inc.

Interested in attending our next in-person event this Summer? Register now for the Colorado Industry Social taking place on Thursday, July 28 in Denver, CO.

Want to know how you can sponsor events like these? Please contact our Events Team at events@thecannabisindustry.org to explore possibilities.

Policy Council Conversations | 7.20.21 | The Medicine and Research of Cannabis

In this edition of our Policy Council Conversations series originally aired on Tuesday, July 20, 2021 we were joined by the six primary authors of NCIA’s recently released whitepaper on the Medicine of Cannabis for an overview designed to help inform and guide policymakers and medical professionals on the science, history, and uses of medical cannabis.

The Medicine of Cannabis: An Overview for Medical Professionals and Policymakershttps://bit.ly/3Bn1UBy

This publication was developed by scientists and doctors working with NCIA’s Policy Council and Scientific Advisory Committee, and promotes policies that facilitate further research and fair, legal access. On this webinar you’ll hear from the writing team itself, including physicians, veterinarians, and a PhD researcher as they discuss their paper and summarize what your doctor and policy maker needs to know.

Learning Objectives:
• Overview the history of medical cannabis and its prohibition in the United States
• Brief intro to the Endocannabinoid System
• Explore the cannabis plant
• Learn about different conditions cannabis can treat and the research that backs it up
• Discuss policy implications for cannabis including the need to deschedule

Speakers:

• Dr. Stephen Dahmer MD, Chief Medical Officer, Vireo Health

• Dr. Paloma Lehfeldt MD, Director of Medical Education, Vireo Health

• Dr. Paul Muchowski PhD, Founder/CEO/CSO, Defined Research

• Dr. Lynn Parodneck MD, Medical Practitioner

• Dr. Tim Shu DVM, CEO, VETCBD

• Dr. Casara Andre DVM, Founder, Veterinary Cannabis Education & Consulting

Committee Insights | 7.20.21 | Subculture to Pop Culture: Creating Culturally Relevant Cannabis Brands

In this edition of our NCIA Committee Insights series originally aired on Tuesday, July 20, 2021 we were joined by members of our Marketing & Advertising Committee for a discussion on the importance of creating, cultivating & maintaining cultural relevancy for your cannabis (or CBD) brand. Stick around for the entire conversation as the panel dives deep into specific tools, metrics and methods for both research & analysis of your campaigns during the Q&A segment to close out the program.

Presentation Slide Deck: https://bit.ly/3zlnPYe

As the industry transitions from margins to mainstream, cannabis brands reach wider audiences. With that comes the need to navigate an increasingly complex media landscape to capture consumer attention. Learn how to make your brand more valuable to consumers by understanding their passions, engaging with fans, sharing in cultural events, and participating in social conversations.

Learning Objectives

• Learn what it takes to become a culturally relevant brand through real brand examples presented by the industry marketing experts who built them.

• Understand the risks and rewards of joining cultural conversations and specific considerations for cannabis and CBD brands.

Panelists:

Dana Mason, Brand Director at Cresco Labs

Alexis Mora, Head of Marketing at Harborside

Tara Rozalowsky, VP, Beverages & Edibles at Canopy Growth Corporation

Allison Disney, Partner, Business Strategy, Receptor Brands

Committee Insights | 7.14.21 | How to Increase Product Safety When We Don’t Know What “Safe” Is

In this edition of our NCIA Committee Insights series originally aired on Wednesday, July 14, 2021 we were joined by members of our Cannabis Manufacturing Committee for a discussion about how terpene limits, both in edibles and inhalables, as well as vapor products can be manufactured so as to place them as low as reasonably possible on the risk continuum.

With years of research and study ahead of us, it wouldn’t be appropriate to call many manufactured cannabis products “safe.” But that doesn’t mean we need to stop selling products until all the data is in. We know enough now to make manufactured products safer than the alternatives, in other words, provide a harm reduction benefit.

Presentation Slide Deck: https://bit.ly/3xMuBWC

Learning Objectives:
• Principles of harm reduction and risk continuum
• Latest thinking in terpene limits (edibles and inhalables)
• Latest thinking in vapor hardware configuration and testing

Speakers:

Lior Chatow, Research And Development Manager, Eybna

Ramon Alarcon, Founder + CEO, Wellness Insight Technologies, Inc.

Arnaud Dumas de Rauly, Co-Founder & CEO, Blinc Group

Committee Insights | 7.14.21 | How to develop a Risk Assessment for your Canna-Business

In this edition of our NCIA Committee Insights series originally aired on Wednesday, July 14, 2021 we were joined by members of our Risk Management and Insurance Committee for a discussion on how to evaluate and rank risks to your cannabusiness.

Our experts discussed the potential impact of risk to cannabusiness operations and how to effectively identify and rank them. The discussion included risks posed by product sales, partnership agreements and corporate culture. The expert panelists also shared insights gained from their respective areas of specialty which include; Legal, Financial, Manufacturing, Technology and Insurance. Their insights will arm YOU with the tools needed to fortify yout operational practices and minimize or avoid costly losses.

Presentation Slide Deck: https://bit.ly/3hJJwLD

Panelists:
Helkin Berg
CEO
Strimo

Merril Gilbert
Co-Founder & CEO,
TraceTrust

Kevin Haller
Principal
Akene Consulting, LLC

Mathew Grimes
Vice President – Cannabis Specialty Group
HUB International Limited

Summer Jenkins
Business Development Manager
Cannasure Insurance Services

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.

Member Blog: While You Are At Home – Time To Prepare For Achieving GMP Certification

by Merril Gilbert, CEO of Trace Trust and David Vaillencourt, CEO of The GMP Collective

Why Adoption of GMPs Is More Important Now  

COVID-19 has altered everyone’s day to day life and has put a strain on the healthcare, food, distribution, insurance, and financial industries in ways we did not think possible just a few short months ago. It will be a slow process to get our lives and businesses moving forward. Having Good Manufacturing Processes (GMPs) in place will ensure that your business will rise from this stronger and more profitable, in addition to the trust and safety that it will display to customers.  

The lifeblood of your organization starts and ends out on the production floor – whether that is in the greenhouse, the extraction and formulation room, or in packaging. This can be reduced to a series of processes with inputs and outputs. It should go without saying that without product moving through your processes, you have no output and thus no revenue. 

Enter Good Manufacturing Practices (GMPs). Don’t confuse GMP as just the latest buzzword in the cannabis and hemp industry. It is a system of best practices that have proven themselves the world over through continuous improvement and refinement for several decades!

These best practices provide significant value to your employees, risk managers, investors, and customers as they enforce your company’s commitment to their safety. While you continue to keep your business afloat during these uncertain times, whether it is from the safety of your home or from the front lines if you are in a market that has recognized cannabis as the essential business NOW is the perfect time to review documents and take the next step to becoming GMP compliant. 

Why GMPs for the Cannabis or Hemp Industry?  

Good Manufacturing Practice (GMP) is a system for ensuring that products are consistently produced and controlled according to quality standards. It is designed to minimize the risks involved with any manufacturing production that cannot be eliminated through testing the final product.

GMP covers all aspects of production from the starting materials, premises, and equipment to the training and personal hygiene of staff. Detailed written procedures are essential for each process that could affect the quality and safety of your final product. These are complemented by systems to record and store data, to provide tangible proof that these procedures have been consistently followed  – every time a product is made.

If your cultivation, extraction, manufacturing, laboratory, or distribution business is still operating you have probably had to modify your daily operating procedures. This may include implementing staggered schedules, limiting production runs, and providing frontline employees with revised hygiene guidelines and protective gear. Have you updated your standard operating procedures (SOPs) to reflect these changes? 

Your SOPs are living breathing documents and are fundamental to every business, and a business built on Good Manufacturing Practices is no exception. To understand the value, let’s ask a few simple questions.

First, have any of these events happened within your business recently?

  • A change in PPE requirements
  • New or more stringent sanitation practices
  • Additional steps for end of day facility closing
  • New vendors or suppliers of ingredients (hand sanitizer? bleach?)
  • Employee leave requirements

Assuming the answer is yes to at least one of those questions (and if it isn’t, go back and read it again or call another colleague and ask them), your SOPs need to be updated.

Have you or someone in your organization reviewed your SOPs since any of those changes were made? 

If you answered yes, how do you know that? Is there written evidence (a record or log) of this review somewhere? 

For many of you, it is likely that someone somewhere performed some level of review, but whether it was documented in a clear traceable manner is another story. 

Give Credit Where Credit is Due

It is common that within many organizations, the activities required to establish a robust Quality System, including GMPs largely exist, yet most likely not being documented. Unfortunately, the lack of documentation or poor documentation is nearly just as bad as not having done it in the first place. Why? Because an organization is a large fluid operation with many people moving in different directions. Without a record of changes, this change quickly gets lost in the shuffle.

By now it should be clear that the redundancies and miscommunications from a lack of documenting your activities can quickly multiply. By taking a few minutes to record everything properly provides tangible evidence of the activity (get credit for the work you did!) and will save time and money in the long run!

Now what?

Remember those questions earlier on in the article? Everywhere you had a “No”, go back and make it a “Yes”! And record it. At the end of the day, give yourself a pat on the back. You just conducted your first internal audit! You are well on your way to increasing your operational efficiency, and being able to show the world you care about product safety and quality by demonstrating Good Manufacturing Practices! 

Stay tuned for our next post where we will dive deeper into the functional areas and programs that are the core components of a GMP system.


Merril Gilbert, is CEO of Trace Trust.

Co-Founder & CEO of TraceTrust and A True Dose™ and hGMP™ the first universal independent certification programs for dose accuracy in legal cannabis and hemp-derived ingestible products. Always at the forefront of emerging trends on the future of food, technology, health and wellness, she leverages 25 years of experience of creative development, operations and investment for everything food and beverage. Current Chair of the NCIA Education Committee.

David Vaillencourt, is CEO of The GMP Collective.

David and his team at The GMP Collective bring decades of pharmaceutical and food industry best practices to cannabis and hemp. He holds a Master’s Degree, is a Certified Food Systems Auditor, and brings a decade of experience in various governmental scientific work. David supports the industry in many ways, including serving as an Officer on ASTM International’s D37 Cannabis Standards Development Committee, participation in NCIA’s Facility Design Committee, and has also developed cannabis training content for college courses.

Contact the authors to learn more about how your business may benefit from implementing GMPs.

 

Member Blog: Hemp and Marijuana Genetics – A Closer Look At The Differences

by George Mouratidis, Industrial Hemp Farms

There are many ways to classify cannabis variants, but the most popular distinction is between hemp and marijuana. Although most of us take these classifications for granted, perhaps you’ve wondered if they are really legit? Put another way: are there real genetic and anatomical differences between marijuana and hemp? And, if so, what are they?

The hemp/marijuana classification is still a major debate within the cannabis community. Although up-to-date research suggests there are genetic differences, critics contend these distinctions have much more to do with legality than botany.

To better understand the complexity of the hemp v. marijuana classification, let’s quickly go through a primer on the cannabis genus. Afterward, we’ll take a closer look at the differences often associated with hemp v. marijuana and why these terms have gained such prominence.

The Basics Of Cannabis Distinctions

The first thing we should clear up is that the word “cannabis” is reserved for the plant genus. This means that both hemp and marijuana technically fall under the cannabis label. For many years, botanists have categorized the cannabis genus into the following three groups:

  • Cannabis sativa
  • Cannabis indica
  • Cannabis ruderalis

Of these three, sativa and indica are probably the most familiar to you. Usually, cannabis connoisseurs draw the sativa v. indica distinction to help differentiate the physiological effects of each strain. Sativa-heavy strains are said to be more energizing while indicas are supposedly more sedating.

It’s important to remember, however, that sativas and indicas were first split up due to their flowering patterns and features. Here are just a few of the key distinctions often ascribed to these two cannabis variants:

Indicas

  • Short
  • Fat leaves
  • Fast-growing
  • Enjoys mild climate

Sativas

  • Tall
  • Thin leaves
  • Slow-growing
  • Enjoys a humid climate

Ruderalis is a shrub-like variety of cannabis that evolved in harsh northern environments. Due to its history in regions with little light or warmth, ruderalis strains evolved unique genetics that allows them to flower automatically rather than relying on specific amounts of light.

Cultivators nowadays cross-breed ruderalis strains with indicas, sativas, or hybrids to create what are known as “autoflowering seeds.” These auto varieties are convenient due to their predictable flowering period, but they tend to have fewer cannabinoids than standard sativas or indicas. Most often new cannabis cultivators use auto seeds to gain valuable growing experience.

Hemp v. Marijuana: The Legal Distinction

So, why do we need a hemp v. marijuana distinction on top of all these cannabis varieties? A short answer is that drawing the line between hemp and marijuana helps a lot in the legal department.

You see, hemp is legally defined as a substance containing less than 0.3 percent of the high-inducing compound tetrahydrocannabinol (THC). Marijuana, on the other hand, could have 0.3 percent THC content or above.

Obviously, this makes it a lot easier for legal authorities to categorize what is and what is not legal. As of today, the U.S. legalized hemp at a federal level, but marijuana laws vary by state.

Beyond THC: The Different Uses Of Hemp V. Marijuana

This all doesn’t mean that the hemp v. marijuana distinction was arbitrarily drawn up to help legislators. OK, the 0.3 percent benchmark was pretty arbitrary, however, it’s true that hemp naturally produces less THC than marijuana strains. But there’s more to this story than just THC.

Now that the CBD market has skyrocketed, it’s often hard for us to imagine non-edible uses of hemp. However, for most of human history, hemp has been cultivated strictly for industrial purposes. Indeed, people have used the hemp plant’s fibrous stalks to make clothing and rope for thousands of years. Amazingly, hemp is now showing great potential in a variety of fields including papers, plastics, cosmetics, and even fuel.

Marijuana, on the other hand, has always been associated with recreational and medical use. Growers who cultivated marijuana were always interested in maximizing certain terpene and cannabinoid profiles for their chosen strain.

So, the distinction between industrial hemp and marijuana is still valid and useful as the cannabis industry expands. Growing hemp for industrial purposes is far more interested in quantity rather than quality. Marijuana cultivation, on the other hand, requires a greater degree of care and attention to detail.

Industrial hemp cultivators could often get away with planting their male and female seeds in rather tough environments. Professional marijuana cultivators, on the other hand, need to focus a lot of attention on making their environment hospitable for female seeds.

Of course, there are now many high-CBD hemp cultivators out there using similar marijuana grow methods. With that in mind, it’s still quite useful for cultivators to distinguish between industrial hemp and marijuana to better plan their growth cycle.

Does Hemp Look Different Than Marijuana?

Now we know how hemp and marijuana differ in THC content, growth features, and traditional uses… but do they look different?

To the untrained eye, mature hemp and marijuana might appear to be the same. Indeed, there are many cases of police accidentally arresting truck drivers for “marijuana possession” when they were actually transporting hemp. There are, however, a few key anatomical differences to look out for.

For instance, hemp plants are generally taller than most varieties of marijuana. Remember that many cultivators are interested in hemp’s fibrous stalks, which is why they’ve bred them to grow as tall as possible.

In addition to their height, hemp plants also tend to have thinner fan leaves compared with most strains of marijuana. These hemp leaves also tend to be concentrated at the top of the hemp flower with few leaves further down the stem. Marijuana plants, on the other hand, tend to have more leaves evenly spread throughout their branches.

Looking Into The Genes: Novel Research On Hemp v. Marijuana

After reading the above description, you might understandably conclude that hemp strains might lean more towards the sativa side. After all, sativas are typically associated with tall height and thin leaves.

While this makes logical sense, recent genetic research is changing how we think about the sativa v. indica theory. A team of Canadian researchers recently published a study examining the genetic makeup of over 80 marijuana and about 40 hemp strains. Shockingly, they found that hemp plants have a closer genetic tie to indicas rather than sativas. Most marijuana strains, however, showed a mix of sativa and indica influences.

The scientists concluded that there was enough of a genetic difference between hemp and marijuana strains to warrant the classification. Of course, more research will be necessary to understand these complex hereditary differences.

So, Is The Hemp v. Marijuana Distinction Valid?

While there will likely still be a debate about the hemp v. marijuana distinction, this classification system is popular for good reason. Also, there appears to be a scientific basis for grouping hemp and marijuana into separate genetic categories.

Distinguishing between hemp and marijuana can help consumers make a more informed decision when purchasing hemp flowers, hemp trim, oils, or other products. Plus, with the growing interest in hemp’s industrial uses, it’s important for farmers to separate out strains for industry and those for human consumption.

While it might not be a perfect classification system, “hemp v. marijuana” is still around because it continues to help cultivators and consumers make informed choices.


George Mouratidis is a cannabis writer and freelance contributor to Industrial Hemp Farms, Cannabis Tech, and Highlife Media.

IHF LLC is a Colorado-based, fully licensed & certified hemp farming and wholesale company. IHF wholesales CBD hemp biomass and many different cultivars of clones and seeds. The Company also wholesales CBD distillate, T-Free, Decarboxylated Crude, Isolate and other cannabinoids produced at our extraction facility. One of our primary goals is to make mutually beneficial deals, connections and contacts in the hemp industry.

VIDEO: The Bright Future Of The Cannabis Industry

The future is bright for the cannabis industry!
Let’s build it together.

Despite the many struggles our industry faces due to federal prohibition, there’s strong optimism for the direction we are going into the future.

Hear more from these NCIA Members about the amazing industry we are building together:

For even more inspiration, download this NCIA Policy Council Report – “The New Politics of Marijuana: A Winning Opportunity For Either Party” – to learn more about the significant voter support for marijuana policy reform and the legal cannabis industry through thoughtful examination of recent public opinion polling and electoral wins.

Be in the know! Be sure to download our Industry Reports, listen to our weekly podcast, and read up on the latest blogs.

Plus, check out our event calendar and get your team registered!

Not yet a member of NCIA?

Stay up to date about the rapidly evolving landscape by networking with nearly 2,000 member companies who are part of a movement to build a responsible industry.

If you’re interested in learning more about becoming a member of NCIA, fill out this interest form or email JJ@TheCannabisIndustry.org.

Member Blog: The Health Benefits of Raw Cannabis

by Jason Draizin, MarijuanaDoctors.com

Juicing is an increasingly popular health trend. Many people, from nutritionists to athletes, are consuming pressed vegetable juices to get the nutrients contained in leafy greens like spinach and kale. But what about cannabis?

Health Benefits of the Cannabis Plant

The leaves of the cannabis plant are rich in antioxidants, polyphenols and antibiotics, along with cancer-reducing and anti-inflammatory compounds. In fact, the U.S. federal government found in pre-patent research that CBD, which is a cannabinoid found in raw cannabis, is a stronger antioxidant than vitamins C or E.

Along with its nutritional value, raw cannabis can provide therapeutic effects and promotes basic cell function – activating receptors in your brain, releasing antioxidants, and removing damaged cells from the body.

Studies have also shown that consuming raw cannabis has the potential to treat lupus, arthritis and neurodegenerative diseases, help stimulate appetite and decrease nausea, prevent the spread of malignant prostate cancer cells, and prevent cell damage that can lead to serious illness and poor health.

Consuming Raw Cannabis

Consuming raw cannabis does not cause the “high” feeling that one gets when smoking cannabis or consuming it via edibles. This is beneficial for those who do not enjoy the psychoactive feeling often associated with marijuana.

By consuming the plant raw, one can receive all the nutritional and health benefits of the plant without feeling stoned. In fact, it’s been reported that you lose 99% of the health benefits of the cannabis plant when you smoke or cook it.

Juicing marijuana is the easiest and most convenient and way to consume the nutrients found in raw cannabis. Juicing the leaves of raw marijuana extracts essential minerals, vitamins and antioxidants, including:

Iron
Zinc
Calcium
Potassium
Selenium
Carotenoids

In terms of dosage, one suggestion is to consume 30g of fresh cannabis leaves per day.

Tips for Juicing Raw Cannabis

Add in 2- to 4-inch buds and 15 large fan leaves into a juicer. You can use the juice in smoothies with other vegetable and fruit juices, or freeze the juice to make ice cubes. Freeze leftover leaves to preserve their nutrients for future juicing.

Additional Tips for Juicing Cannabis:

Don’t use dry cannabis or nuggets that have already been cured for smoking.
Look for small, sticky crystals on the flowers and make sure that buds are amber colored.
Combine 1-part cannabis juice to 10-parts carrot juice to help reduce cannabis bitterness.

Additional Raw Cannabis Information

When incorporating raw cannabis into your diet, there are side effects to consider, including allergic reactions, possible ingestion of insecticides and pesticides, and compromised immune system from possible pathogenic exposure.

Consuming raw cannabis isn’t the best solution for fast symptom relief. Typically, it takes about three days to notice benefits. For some, the benefits may not be noticed for four to eight weeks as the nutrients build in your system.

To learn more about the benefits of cannabis, or to find a medical marijuana-recommending physician near you, visit MarijuanaDoctors.com.


Jason Draizin is the Founder and CEO of the Medical Cannabis Network and MarijuanaDoctors.com. Founded in 2010, MarijuanaDoctors.com is a secure portal for qualifying patients looking to connect and schedule an appointment with medical marijuana-certified physicians. The site has assisted in the certification of more than 300,000 patients in the U.S., and has established a network of more than 700 physicians nationwide.

Policy Council: The Little-Known – And Critical – Exception To Federal Paraphernalia Laws

This paper was generated by NCIA’s Policy Council. Steve Fox, Policy Council Director, says “the mission of NCIA’s Policy Council is to inform lawmakers and other stakeholders about policy-related matter affecting the cannabis industry. This short paper is an excellent example of that type of work. It is important that we raise awareness about the critical exception to federal paraphernalia laws, under which state-authorized activity is exempt from the provisions of the law. We can debate how that exemption should be interpreted, but we must acknowledge that it exists. This paper furthers that goal.

Read the paper here: “The Little-Known – And Critical – Exception To Federal Paraphernalia Laws

Member Blog: Belly Up to Cannabis Barcode Labels

by Mark Lusky, Lightning Labels

In an increasingly hostile marijuana environment championed by Attorney General Jeff Sessions, tracking of marijuana from “seed to sale” is more critical than ever. All other threats aside, if you can’t document it, you’re in trouble.

And, that’s not just at a federal level. In an effort to document total compliance and control of this rapidly-growing industry, states have taken it upon themselves to require comprehensive due diligence from all cannabis purveyors.

Forbes magazine addresses this in a recent article entitled, “Tracking America’s Cannabis Industry Through Big Data.” Citing Colorado, the article states in part, “This harnessing of an information technology to track the cannabis market is key to Colorado’s forceful march towards creating a thriving legal marijuana industry. Crucially, the state’s ability to use tracking and Big Data could provide a reference point for other jurisdictions interested in the regulatory potential offered by tracking. This ‘closed loop’ ‘seed to sale’ inventory tracking system embodies a ‘full traceability’ mode…”

The article continues, “The use of tracking as a regulatory device is expanding, operating in Oregon, Maryland and Alaska. There are other cannabis tracking companies such as MJ Freeway operating in Nevada and BioTrackTHC in Washington, New Mexico, Illinois, New York, and Hawaii. After all, tracking is part of day to day life. We track parcels and Uber drivers with our phones while retailers track us through those pesky cookies on our computers. Whatever the context, whether it is a regulator or us doing the tracking or whether it is marijuana or us being tracked, the technology is an essential part of contemporary commercial and regulatory life.”

Cannabis Barcode labels to the rescue
An established staple in retail and inventory environments, barcodes/QR codes facilitate trackability. Now that message is resonating in the cannabis industry. A primer in motherboard.vice.com points out, “Walk into any licensed cannabis grow op in Colorado and one of the first things you’ll notice are the barcodes.” They point out in another article, “There are a number of advantages of having a bar code for cannabis growers, producers and retailers. The most important is proper inventory control – which is mandated, in Washington, by the Washington State Liquor Control Board. Having bar codes on inventory items allows rapid identification of specific SKUs. The likelihood of inventory quantity irregularities is greatly reduced.”

They also emphasize, “The reasoning behind implementing these cannabis surveillance systems is pretty straight forward. Since cannabis is still illegal on a federal level, the burden is on the states that have legalized weed to prove that legalization has not aided black market activity.”

Systems spring up to support tracking
Regardless of what type of cannabis tracking label is used, sophisticated systems are springing up to oversee the entire process. An article in the Cannabis Industry Journal entitled “The Importance of Traceability” cites insights of Cody Stiffler of BioTrackTHC, one such system, at a Cannabis Labs Conference in 2016: “The primary goals of a traceability system, according to Stiffler, are to prevent diversion and promote public safety. Our software helps get safe products to patients and consumers in a responsible manner. BioTrackTHC’s tracking software covers everything from seed to sale, involving regulatory bodies in oversight. In the beginning of cultivation, each plant is assigned a bar code or sixteen-digit identifier.”

While “location, location, location” is the driver in real estate, “tracking, tracking, tracking” is the name of the game in the cannabis industry.


Mark Lusky is a marketing specialist who has worked with Lightning Labels since 2008. Lightning Labels uses state-of-the-art printing technology to provide affordable, full-color custom labels and stickers of all shapes and sizes, along with barcode labels and consecutive numbering. From small orders for individuals, to the bulk needs of big businesses, Lightning Labels is equipped to handle and fulfill custom label and sticker projects of all types. Lightning Labels was established in 2002 and based in Denver, Colorado. 

By The Numbers: NCIA Members Make It Happen In The Halls Of Congress

by Michelle Rutter, NCIA Government Relations Manager

While 2017 has had some political unknowns, one thing is for sure: cannabis legislation in Congress has more support than ever — and NCIA members have helped make that happen.

In mid-May, NCIA held its 7th Annual Cannabis Industry Lobby Days in Washington, D.C., where 250 industry professionals came together on Capitol Hill to attend more than 300 scheduled meetings. Since then, there has been a substantial increase in the number of cosponsors on cannabis-related bills compared to the last congressional session.

Last session, during the 114th Congress, Rep. Ed Perlmutter (D-CO) introduced the Marijuana Businesses Access to Banking Act, which would have created a safe harbor for financial institutions to serve marijuana-related businesses. At the end of the two-year session, the bill had 39 cosponsors.

Earlier this year, during the 115th Congress, Rep. Perlmutter introduced his new bill, the Secure and Fair Enforcement (SAFE) Banking Act (H.R. 2215). That bill currently has 47 cosponsors with nearly a year and a half left in the session to gain more support. Since NCIA’s Lobby Days in May, the SAFE Banking Act has added 18 new cosponsors.

There has also been a substantial increase in the number of cosponsors on the House of Representatives bill that addresses the 280E tax problem. Last session, Rep. Earl Blumenauer (D-OR) introduced the Small Business Tax Equity Act, which ended the session with 18 cosponsors.

This year, NCIA was successful in helping secure Rep. Carlos Curbelo’s (R-FL) leadership on the Small Business Tax Equity Act of 2017 (H.R. 1810), which has been instrumental in gaining the 25 cosponsors the bill currently has. That legislation has gained 13 new cosponsors since NCIA’s annual Lobby Days.

In addition to an increase in cosponsorship of cannabis-related bills, there’s also been an uptick in support for appropriations amendments at the committee level. At the end of July, the Senate Appropriations Committee adopted an amendment that would allow the Department of Veterans Affairs (V.A.) to recommend medical cannabis in states. That amendment passed by a vote of 24-7 — the most votes this measure has ever received in the Senate.

As the appropriations process continues through the summer, it’s likely that more cannabis-related amendments will be brought up and voted on, including votes dealing with protections for medical marijuana businesses and banking. NCIA is confident that if congressional leadership allows these measures to be voted upon, they will receive unprecedented levels of support.

The industry’s united voice makes a difference on Capitol Hill, and it can be seen in the numbers. To learn more about NCIA’s annual Cannabis Industry Lobby Days, you can click here.

Senate Subcommittee Just Says Yes… To A Hearing

by Michelle Rutter, Government Relations Coordinator

Earlier this month, the Senate Judiciary Subcommittee on Crime and Terrorism held a hearing entitled ”Researching the Potential Medical Benefits and Risks of Marijuana,” which was presided over by Sens. Graham (R-SC), Whitehouse (D-RI), Klobuchar (D-MN), Grassley (R-IA), and Blumenthal (D-CT). Witnesses included Sen. Kirsten Gillibrand (D-NY) and Sen. Kirsten Gillibrand (D-NY), federal officials from NIDA (National Institute on Drug Abuse), NIH (National Institute of Health), and the FDA (Food and Drug Administration), and members of the medical and legal community. For more information on the hearing and the witnesses, click here.

The first panel included Sens. Gillibrand (D-NY) and Booker (D-NJ), who both testified on the benefits medical cannabis can provide and noted that they are both original co-sponsors of the Compassionate Access, Research Expansion, and Respect States Act (S. 683), better known as the CARERS Act. Some of the key points that the Senators mentioned during the hearing included removing cannabis from its designation as a Schedule I drug, dismantling NIDA’s monopoly on cannabis used for research, and the urgent need to ease restrictions to allow for more research.

The next panel was comprised of two government agency officials: the Director of the Division of Extramural Research at the National Institute on Drug Abuse at the National Institutes of Health, and a doctor who is Deputy Center Director for Regulatory Programs at the FDA. Both panelists repeatedly stressed the importance of continued research into the therapeutic and medicinal benefits of cannabis, as well as the development of cannabis-based drugs. The FDA official also highlighted that the DEA is currently reviewing a recommendation on cannabis’s designation as a Schedule I drug, and the decision is pending.

The third panel included two doctors and a lawyer representing the DEA. The first doctor noted that THC and CBD do have therapeutic value but stressed the need for more research to determine if/how to mitigate any negative side effects of medical cannabis use. The second doctor on the panel is a well-known cannabis opponent, whose testimony sounded more like “reefer-madness” than a Senate hearing on cannabis in 2016. The lawyer present gave a moderately short statement, but did state that the DEA regulations around Schedule I drugs already provide a great deal of flexibility for research and can and are waived to allow legitimate studies and that the reclassification of cannabis to Schedule II would have little impact on the barriers to research – a statement that most in the cannabis community would strongly disagree with.

During questioning, Sen. Graham (R-SC) asked if the witnesses believed that cannabis should be re-scheduled as a Schedule II drug. Both the FDA official and the NIDA/NIH official weighed in, and with the same conclusion: more research is needed in order to make that determination. Chairman Graham also asked how to best facilitate medical cannabis research, which was answered by the DEA’s lawyer, who responded that the “flexibility” in the regulatory system could allow for it.

What does it mean?

Past Congressional hearings regarding cannabis have typically focused on the harms, not the benefits, of marijuana. As such, it’s a positive sign that the Chairman of the Senate Judiciary Subcommittee on Crime and Terrorism, Lindsey Graham (R-SC), held a hearing on the potential therapeutic benefits of medical cannabis. The main takeaway from the hearing was the desire from all parties – Senators, government officials, and medical professionals alike – for more research on cannabis, its compounds, and its effects.

Regardless, this hearing shows the progress that the industry has made in Congress and the momentum building nationwide behind the cannabis movement.

 

2016: What’s Next?

by Michelle Rutter, Government Relations Coordinator

This year is arguably the most crucial yet for the burgeoning cannabis industry, especially as it relates to policy. Although NCIA primarily advocates for cannabis reform at the federal level, what happens in each individual state is vital to the stances Members of Congress take on our issues.

Members of Congress care deeply about issues that directly affect their specific state or district. It’s imperative that more states enact cannabis reform legislation so that more Members have a vested interest in protecting their constituents. While cannabis reform is sweeping the nation at an almost unprecedented rate, it takes time for politicians in Washington, D.C., to catch up with public opinion back home. If all of the federal lawmakers representing just the 15 states mentioned below were to vote positively on pro-cannabis legislation, it would add up to more than 180 Representatives and nearly 30 Senators.

Take a look below and see what’s coming up next in 2016. Remember that by becoming a member of NCIA, you are adding your voice to the coordinated and unified campaign at the federal level to allow cannabis businesses access to financial services, fix tax section 280E, and ultimately end federal cannabis prohibition.

The United States of Cannabis

          • Arizona activists remain ahead of schedule and have nearly gathered the 150,000 signatures needed to put the state’s Campaign to Regulate Marijuana Like Alcohol initiative on the November 2016 ballot. (The campaign ultimately aims to collect 230,000 in order to insure against signature drop-off.) It’s estimated that Arizona’s adult-use market could be worth up to $480 million.
          • With a multi-billion-dollar cannabis industry in California alone, passing an adult-use legalization initiative in the state is vital to ending federal prohibition. The most prominent full retail initiative gathering signatures for the November 2016 election is the Adult Use of Marijuana Act, which is backed by billionaire Sean Parker and the Marijuana Policy Project.
          • Legalize Maine and the Marijuana Policy Project have joined forces to legalize adult-use cannabis in 2016. Legalize Maine has already collected 80,000 signatures. Only 61,000 signatures are necessary to place the measure on a statewide ballot, but the organization’s goal is 95,000, to insure against drop-off. The deadline to submit signatures is February 1st.
          • Last August, a pair of cannabis advocacy groups separately filed paperwork to get adult-use legalization on the 2016 ballot in Massachusetts. The state recently confirmed that a measure to legalize recreational cannabis next year has enough valid signatures to force the legislature to consider the measure. If the legislature decides to pass, then the campaign will have to collect another 10,792 signatures to formally make the November ballot.
          • There’s no question that adult-use legalization will be on the ballot this year in Nevada. Initiative Petition 1, which would tax and regulate marijuana similarly to alcohol, has been certified for the 2016 ballot. Backers had previously collected nearly 200,000 signatures to either force legislators to enact their initiative or put it on the ballot. When state lawmakers abstained from voting on the issue, the measure was automatically forwarded to this year’s ballot for a popular vote.
          • In Florida, the group United for Care received clearance from the state Supreme Court for a 2016 ballot measure that would legalize medical marijuana. The group nearly succeeded in legalizing medical marijuana in 2014, garnering 58% of the vote but falling barely short of the state’s constitutionally mandated 60% margin needed to pass, 
          • The nation’s capital continues to debate cannabis. In December’s federal budget bill, the taxation and regulation of marijuana in Washington, D.C., was blocked by Congress again, though possessing and gifting cannabis remains legal in the city.
          • This month, Hawaii will begin accepting applications for medical cannabis businesses. The bill signed into law last summer opens the door for up to 16 dispensaries on the islands.
          • It was recently announced that Illinois saw approximately $1.7 million in medical cannabis sales during November and December of 2015. There are already petitions being circulated in the state that would expand the law’s qualifying conditions.
          • Maryland will award cannabis cultivation, processing, and dispensary licenses this summer. Industry advocates were pleased with the amount of interest the state’s program garnered: more than 1,000 applications were submitted.
          • Officials in Michigan have approved language for three different adult-use cannabis legalization initiatives for the 2016 ballot. In order to have the best chance of passing, it’s important for these groups to coalesce behind one initiative.
          • At the end of 2015, New Hampshire began issuing medical marijuana cards to qualifying patients. It’s expected that the state will open medical dispensaries in 2016.Map-of-US-state-cannabis-laws
          • After a long and arduous journey, New York’s medical cannabis program became operational this month. The cannabis industry expects the program and the law’s qualifying conditions to expand this year.
          • In the first week of 2016, Oregon began accepting adult-use cannabis business license applications. The state has no limit on how many licenses they will decide to award.
          • Vermont may become the first state to legalize adult-use cannabis through the legislative process in 2016. The proposed bill would allow for up to 86 storefronts and five different business license types.

 

Bonus: Election 2016 – Yes, We Canna

            • As we all know, a new president will be elected this November, and with that a new administration will assume power next January. It is very crucial that Congress pass more pro-cannabis legislation before then.
            • It’s probable that Attorney General Loretta Lynch will be replaced in 2016 or early 2017. This is important because it is the Department of Justice that enforces and prosecutes federal marijuana laws.
            • Another possibility for 2016 is that the acting head of the Drug Enforcement Administration, Chuck Rosenberg, could be replaced as well. Rosenberg is notorious for his gaffe last year when he called marijuana “probably” less dangerous than heroin.
            • On New Year’s Eve, officials from the Substance Abuse and Mental Health Services Administration posted a notice on the Federal Register that calls for a report “presenting the state of the science on substance use, addiction and health” to be released in 2016. Industry advocates are hopeful that this report could be the first sign of re- or de-scheduling cannabis from the Controlled Substances Act.
            • During 2016, NCIA will continue working with D.C.-based public affairs firms Heather Podesta + Partners, and Jochum Shore & Trossevin PC to magnify our efforts to address the industry’s top federal priorities: access to basic banking services and fair federal taxation.

 

In addition to NCIA’s lobbying and advocacy efforts, NCIA exists to connect and educate our members on all facets of the cannabis industry. Our industry supports tens of thousands of jobs, tens of millions in tax revenue, and billions in economic activity in the United States. Our core mission is to ensure that our members are treated like businesses in any other American industry. Join NCIA today to get involved and be a part of the cannabis revolution!


Join us for our 6th Annual NCIA Member Lobby Days in Washington, D.C. on May 12 & 13, 2016.

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NCIA Member Posts Year in Review

2015 has been a great year of growth and learning within our industry. Our members are invited to submit their guest blog posts throughout the year to share their wisdom and insight with our membership and followers. Today we look back at the year in Guest Posts. Did you miss any the first time around? Check them out here.

NCIA Staff Picks:

The National Cannabis Industry Association's 5th Annual Lobby Days in Washington, D.C.
The National Cannabis Industry Association’s 5th Annual Lobby Days in Washington, D.C.

Legislation, Rule-Making, and the Necessity to be a Unified Industry – October 7
By John Davis, Northwest Patient Resource Center

The Common Ground Between Advocacy and Business in the Cannabis Industry – March 2
By Adam Bierman, MedMen

Redefining the Business Battlefield: The Case for Boutique Cannabis – August 5
By Travis Howard, Shift Cannabis Co.

Regulating Marijuana: What Direction for FDA? – August 3
By Steve Goldner, Regulatory Affairs Associates

The ABC’s of CBD Claims – July 2
By Shawn Hauser, Vicente Sederberg

Year in Review

January

Tax Time – Using an LLC To Minimize Section 280E Selling Costs
By Luigi Zamarra, CPA

Banking Access – The Struggle Is Real for CannaBusiness Owners
By Luke Ramirez, Walking Raven LLC

February

Illinois Cannabis Businesses – Guidelines for Compliance with Illinois Employment Laws
By Jennifer Adams Murphy, Esq., and Ryan Helgeson, Esq., Wessels Sherman

Managing Your Talent – Your Greatest Asset!
By Carole Richter, CRichter ~ HR Consulting

March

Work and Well-Being in the Cannabis Industry
By Kevin M. Walters, Colorado State University

Women, Cannabis, and Self-Esteem
By Meghan Walstatter, PureGreen PDX

Best Practices for Interviewing Candidates in the Cannabis Industry
By Kara Bradford, Viridian Staffing

May

Top 6 Reasons to Hire a Dedicated Cannabis Marketing Agency for Your Business
By Kurt Whitt, Studio 420

Marijuana Millions – The Road Map to Your Success, Part 1
By Alexa Divett, Maya Media Collective, LLC

June

Marijuana Millions – The Road Map to Your Success, Part 2
By Alexa Divett, Maya Media Collective, LLC

July

THC – The Illusion of Its Value
By Rowshan Reordan, Green Leaf Lab

August

Favorable IRS Ruling – State Excise Tax May Escape 280E Treatment
By Luigi Zamarra, CPA

September

Growing Pains in Michigan
By Matthew Abel, Cannabis Counsel P.L.C.

The Potential of Brand Loyalty
By Patrick Hayden, Brightfield Group, LLC

Deal for Regulations Passes California Legislature
By Nate Bradley, Executive Director of California Cannabis Industry Association

October

Raising Money 101 – What’s an Offer and Why Does it Matter?
By Charles Alovisetti, Vicente Sederberg LLC

November

NCIA Board Chair Reflects on the Past Five Years
By Jaime Lewis, Mountain Medicine


Are you interested in submitting a guest blog post for NCIA’s website? Please reach out to Bethany Moore by emailing bethany@thecannabisindustry.org to propose your topic. 

 

Guest Post: Illinois Cannabis Businesses – Guidelines for Compliance with Illinois Employment Laws

By Jennifer Adams Murphy, Esq., and Ryan Helgeson, Esq., of Wessels Sherman

If you are successful in obtaining a dispensing or cultivation license under the Illinois Compassionate Use of Medical Cannabis Pilot Program Act (“IMCA”), you have already made a substantial time and financial investment in your new business. You know that to be successful, you must have a dependable workforce. Continued success, however, will require employment policies which will minimize the substantial risks and costs of employment litigation and regulatory challenge. To that end, the following issues should be addressed before you begin to hire employees:

Hiring Considerations

wessels_1Needless to say, your application process must be compliant with state and federal discrimination laws. Of specific relevance to your business will be federal and state laws pertaining to arrest and conviction records. The EEOC generally considers blanket rejection of applicants with conviction records illegal, and state and federal laws prohibit inquiries regarding arrest records. These laws require special attention in your business because the IMCA requires that all employees of a dispensing organization or cultivation center obtain an “agent identification card” which will not be issued under the (proposed) regulations when an applicant has been convicted of violent crimes and certain felonies. Without a card, an individual cannot commence employment under the IMCA. Because of the potential conflict between IMCA regulations and these employment laws, the safest practice is to advise applicants that their employment is contingent upon their receipt of an identification card from the state (rather than incorporating the conviction restriction into your application).

The IMCA requirements for issuance of an agent identification card, which appear to require an applicant to have a Social Security card, are in potential conflict with I-9 employment authorization requirements. Pursuant to I-9 regulations, an employer may not specify which documents an employee provides to demonstrate their employment authorization. An employee can provide any documents that satisfy the Form I-9 requirements; employers cannot insist upon a particular document such as a Social Security card. To avoid violation of federal law, your application process should clearly state that the required Social Security card and state identification card are to meet the agent identification requirements and not for employment authorization purposes.

A contract disclaimer should be included in your employment application to ensure the at-will status of any hired employees.

Employment Record Retention

The proposed IMCA regulations require that all employment-related documents be retained for five years. I-9 employment authorization forms must be completed and retained apart from employees’ personnel files.

Employee Classification

Employers who grow and transport cannabis may be able to take advantage of overtime exemptions under state and federal law. In certain situations, minimum wage exemptions may also be available. However, do not assume minimum wage or overtime exemptions apply — careful evaluation is required. Also, regardless of classification, hours worked must be recorded and retained.

Other Policy Considerations

wesselshandbookAn employment handbook should be considered. Handbooks should have contract disclaimers and must include anti-harassment policies. In addition, employment policies should address privacy issues, particularly given the regulatory requirements of video monitoring in this industry.

Required posters pertaining to employment laws must be posted.

Adoption of an employment dispute arbitration policy should be considered. A carefully drafted arbitration policy will provide for resolution of employee disputes through arbitration rather than in courts.

Voluntary compliance with the Illinois Drug-Free Workplace Act may be a wise choice. After a conditional offer of employment is made, cannabis cultivators may wish to require a drug screening. Thereafter, a program of reasonable suspicion or random drug testing could be implemented.

Employment laws are always challenging to navigate. The issues outlined above are examples of some of the issues which are easily overlooked or misunderstood. A thorough understanding of your responsibilities as an employer in this highly regulated area will diminish the risk of costly and disruptive claims.

For further information, please contact Jennifer Adams Murphy, Shareholder at Wessels Sherman Law Firm (630-377-1554 or jemurphy@wesselssherman.com) or Ryan Helgeson, Associate Attorney (312-629-9300 or ryhelgeson@wesselssherman.com). 

Wessels Sherman is a law firm with offices in Illinois, Minnesota, Wisconsin, and Iowa with a practice limited to management-side labor and employment law, and has been a member of NCIA since September 2014. Ms. Murphy has been practicing for over 27 years, counseling clients and litigating before agencies and state and federal courts. Mr. Helgeson counsels and represents clients in connection with immigration and other employment-related matters.


For more on navigating the complex issues 0f human resources, register today for NCIA’s upcoming Educational Series event, Recruit, Retain, and Develop Your Talent, taking place on March 2 at the History Colorado Center in Denver!

Recruit, Retain and Develop Your Talent — This panel of experts will help you build your human resources competencies! They will present the latest trends in talent acquisition and management. You will learn how to select the best person for the position and your organization, discover how to set and align your teams towards organizational goals, and drive and engage your best performers while managing others, up or out! Acquire the knowledge and tools you need to ensure your employees and your organization are successful. Featuring: Kara Bradford, Chief Talent Officer, Viridian Staffing — Carole Richter, Principal, CRichter ~ HR Consulting, LLC — Maureen McNamara, Cannabis Trainers.

NCIA Member Profile: CBCB – Cannabis Buyers’ Club Berkeley

NCIA recently had an opportunity to speak with Aundre Speciale, director of CBCB, a locally-licensed medical cannabis dispensary in Berkeley, California. CBCB is a patient-centered collective with limited membership, bringing patients access to medicine in conjunction with a natural perspective of wellness, and they offer educational seminars, support groups, and a variety of services.

Aundre Speciale of CBCB sits with the late Jack Herer
Aundre Speciale of CBCB sits with the late Jack Herer

Cannabis Industry Sector:

Medical Cannabis Provider

Sustaining NCIA Member Since:

2014

How do you uniquely serve the cannabis industry?

My background is a mix of activism, politics, and industry. I have worked for cannabis reform for 25 years as an activist and lobbyist, gaining civil disobedience experience as well as political allies. Through my activism I have been able to hear directly from patients what their needs are, and I now currently operate several dispensaries throughout the state.

My model for dispensing medical cannabis has included opening community centers that provide free services to patients and the local community, working closely with community service providers and city government to create enlightened cannabis policy, and funding major cannabis research and reform projects. I currently share my operational experience by sitting on the boards of a number of licensed dispensaries throughout California. I have been inspired by and learned from the compassionate models of people like Jack Herer, Eddy Lepp, Dennis Perron, Val and Mike Corral with WAMM, Debbie Goldsberry and Don Duncan with Berkeley Patients Group (BPG), and many more.

Why should patients looking for medical cannabis services go to Cannabis Buyers’ Club Berkeley (CBCB)?

Cannabis Buyer's Club Berkeley

CBCB was started in 1996 by patients with a desire to help other patients. It continues in the same spirit. We have two employees who have worked at the collective for more than 15 years, and we have patients who have been with the collective since its beginning. I became director in 2007.

CBCB’s style is uniquely Berkeley, as are its compassionate patient-centered programs. We offer many support groups, educational seminars, wellness programs, and a compassion program that provides free medicine for patients, including children with epilepsy, chemo patients, veterans, and end-of-life patients. Many programs and services are run by patient volunteers, “patients helping patients.” CBCB believes in community responsibility and not only funds and supports cannabis research, campaigns, and advocacy, but also supports community events, projects, and organizations. Our patient volunteers walk the neighborhood daily picking up all trash, while an extra CBCB security guard patrols the neighborhood greeting neighbors. Our employees are compassionate and cannabis-educated and are happy to spend as much time as patients need to assist them in finding the medicine that works best. CBCB has an unusually large range of products to serve the individual needs of our patients. We offer free fruit, coffee, and tea, and hugs are handed out liberally. Our official motto is ‘choose love.’

Tell us about your past involvement in the California medical marijuana community. Where do you see the laws and culture heading in California in the future?

Aundre Speciale stands next to the Hemp Bus, 1991
Aundre Speciale stands next to the Hemp Bus, 1991

My passion for cannabis advocacy began in 1989 at the height of the “just say no” era when my neighbor, Jack Herer, asked me to join him on the Hemp Bus, touring California and the country promoting hemp for fuel, food, fiber, fun, and medicine. Thus began my life-long love for and dedication to cannabis reform. I have been involved in countless cannabis campaigns and projects, including the federal hemp foods ban protests, and I was key organizer on behalf of defendants in the first federal trials of medical cannabis providers. I’m a founding member of Americans for Safe Access, where I developed its popular peer counseling program, gathered data for lawsuits protecting and expanding patientsʼ rights, and provided best-practices training for dispensary operators. I served on the board of the Marijuana Policy Project for three years, holding the vice chair position. I have been an early dispensary operator, opening dispensaries and working with several cities to craft medical cannabis regulations, including San Francisco, Sacramento, Venice Beach, Berkeley, South Lake Tahoe, and Oakland.

California has had a thriving cannabis culture for generations, and it is hard to get everyone to all agree what direction cannabis regulations should go. But I see California, along with the rest of the country and world, having access to adult-use cannabis, as well as hemp products, in the very near future. People are looking for safer, more natural products, from their medicine to their paints, and cannabis is the answer. Cannabis is the “new” in thing.

Why did you get involved in NCIA?

I love NCIA. I know NCIA’s executive director Aaron Smith from the amazing work he did with the Marijuana Policy Project (MPP), and he has a long record of successful campaigns. With NCIA, he has proven to be a strong, effective leader who has assembled an incredible staff. I appreciate the caliber and experience of NCIA speakers and members, truly the best in the industry, with whom I can truly learn and exchange ideas about timely and relevant industry information.

Contact:

Aundre Speciale
Cannabis Buyer’s Club Berkeley Facebook

If you are a member of NCIA and would like to contribute to the NCIA blog, please contact Development Officer Bethany Moore by emailing bethany@thecannabisindustry.org.

Guest Post: Child-Resistant Marijuana Packaging – Better Safe Than Sorry

By Scott Simpson, TricorBraunsafetycap

While the legislative landscape in the cannabis industry continues to evolve both locally and nationally, one element that seems consistent is the need for producers and marketers of cannabis-related products to act responsibly in protecting children from unintended access to their products, and for good reason. Though less likely that a child under the age of five would have the desire or wherewithal to consume a harmful quantity of a floral-based product, the compelling nature of some of the edible offerings such as candies and cookies makes the likelihood not a matter of if, but when. And considering the potential liability, purveyors of such products would be wise to take every precaution as it relates to packaging.

Child-resistant packaging dates back to 1970 when after a series of accidental overdoses, Congress passed the Poison Prevention Packaging Act of 1970 and along with it, specific protocol testing to validate the functionality of child-resistant (CR) packaging. As time evolved, additional products deemed dangerous to children such as insecticides and pesticides were also added, and in 1995, the protocol testing was modified to include a ‘senior-citizen component’ as many of them found current forms of CR packaging difficult to open. When considered along with the oversight from the Consumer Product Safety Commission (CPSC), the governing body for determining what requires CR packaging, this legislation has served both industry and citizenry effectively since inception.

It is well documented that when Colorado began offering recreational marijuana products, there were few packages well-suited for the industry, and while a number of new offerings are in development, many products are currently packaged in the least expensive container and with some dubious CR performance or unverified claims of meeting CPSC guidelines. Indeed Colorado has put forth guidance on the requirements for the market, but prudent producers of cannabis products, especially edibles, would be wise to make purchase decisions based on the true protection the packaging affords and not on price alone. Sooner or later, it would seem, an incident will take place where this very issue will take center stage, and based on our considerable expertise in the packaging arena, we think it to your advantage to be able to demonstrate that balanced judgment (price vs. protection) and proven components were considered when choosing a CR package. Presuming this choice was made well, being able to cite components similar if not identical to those used by the ethical pharmaceutical industry should go a long way to demonstrate reasonable consideration was in fact used to protect the product from accidental ingestion by a child.

A quote often noted by the CPSC is that “child-resistant packaging is not child-proof packaging and as such the components should be considered the last line of defense.”

Scott Simpson is Vice President at TricorBraun XpressPaka Sponsoring level member of NCIA since July 2014, based in St. Louis, MO, with an office in Aurora, CO. TricorBraun, launched in 1902, has grown to become a leading source of rigid packaging and related services, and has extensive experience in this packaging segment and offers assistance to NCIA members in evaluating options for current or future packages.

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