Service Solutions: Mastering Data-Driven Success in the Cannabis Industry
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.
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.
Join us for an in-depth exploration of emerging trends and key insights from cannabis market data, designed to help cannabis and ancillary businesses stay ahead in a dynamic industry. This webinar will delve into the latest B2B and B2C data, offering strategic perspectives on how businesses can adapt to shifting consumer behaviors, market opportunities, and regulatory changes. Discover how top performers in the industry are leveraging data to drive growth, remain compliant, and gain a competitive edge.
Key Takeaways:
• Explore the latest data-driven trends shaping the cannabis industry and their implications for B2B and B2C markets.
• Understand how to use cannabis market insights to identify new opportunities, anticipate challenges, and inform business strategies.
• Gain a strategic understanding of how evolving regulations are influencing market dynamics and compliance.
• Learn how successful businesses are embedding data-driven decision-making into their organizational culture to improve overall performance.
Featured Speakers:
Adam Hutchinson
Co-Founder
CannaSpyglass
John Manlove
CEO
Apex Trading
Vib Gupta
Co-Founder & CEO
CannMenus
California Cannabis Regulations: From Policy to Practice | Policy Matters | 02.08.24
Illuminating California’s Cannabis Regulations: Insights from Industry Leaders
Welcome to the fourth edition of our esteemed Policy Matters series, where we embark on a journey through the intricate landscape of California cannabis regulations. This series, made possible by the collaborative efforts of the National Cannabis Industry Association (NCIA) and its dedicated Policy Co-Chairs, Khurshid Khoja of Greenbridge Corporate Counsel and Michael Cooper of MadisonJay Solutions, serves as a beacon of insight and discourse in the ever-evolving landscape of cannabis regulation.
Building upon the foundational discussions initiated by our previous editions, this installment shines a spotlight on California’s pioneering strides in cannabis policy. In this blog post, we’ll delve deep into the dialogues and revelations shared during the recent webinar broadcast hosted by the NCIA, exploring the multifaceted dynamics of policy-making and enforcement in one of the nation’s most influential cannabis markets with Nicole Elliott, Director of the California Department of Cannabis Control.
Brian Gilbert, Deputy Director of Events and Education at NCIA, set the stage for the discussion, emphasizing the importance of dialogue and collaboration in navigating the complexities of California cannabis regulations. With California serving as a focal point, the webinar delved into the multifaceted aspects of cannabis policy and enforcement.
Understanding Cannabis Policy in California & Journey to the Role
Kicking off the conversation by recognizing the pivotal role of Nicole as one of the longest serving and most experienced cannabis regulators in the country, Khurshid & Michael expressed gratitude for her contributions to the industry. Nicole then shared her journey from local government to cannabis regulation, highlighting her commitment to social justice and equity. Her firsthand experiences with the criminal justice system underscored the importance of inclusive policies and community engagement in shaping regulatory frameworks.
An emphasis was placed on the significance of California’s regulatory evolution from a pioneering medical marketplace and its impact on industry inclusivity and diversity. From supporting legacy operators to promoting market stability, California’s regulatory efforts have paved the way for innovative initiatives like the Appalachians of Origin program, reflecting a commitment to equitable industry growth.
Enforcement Strategies and Real California Cannabis Campaign
Throughout the conversation, Nicole emphasized the importance of aggressive enforcement strategies to combat the illicit market effectively. California’s Unified Cannabis Enforcement Task Force spearheads enforcement efforts, targeting illegal activities such as labor trafficking and environmental contamination. The introduction of the Real California Cannabis campaign aims to shift consumer purchases to legal markets, fostering accountability and consumer safety.
Commitment to Social Equity and Compliance
At a pivotal moment, Nicole Elliott acknowledged historical inequities in the cannabis industry, advocating for initiatives beyond licensing solutions. Fee waivers and promising practices are key components of California’s social equity programs, promoting inclusivity and supporting operators from marginalized communities.
With consumer safety at the forefront, the Department of Cannabis Control prioritizes compliance and transparency in enforcement actions. Operators must adhere to regulations to ensure product safety, with penalties imposed for non-compliance. Transparent enforcement actions empower operators to uphold regulatory standards and foster consumer trust.
Challenges and Opportunities, Partnerships and Collaboration
The influx of hemp-derived cannabinoid products presents regulatory challenges at the federal and state levels. Collaborative efforts between regulators and industry stakeholders are essential to address public health concerns and ensure regulatory compliance. Federal rescheduling efforts and cultivator regulations further underscore the need for adaptive regulatory frameworks that prioritize consumer safety and industry viability.
The webinar highlighted the importance of partnerships and collaboration in addressing regulatory challenges and fostering a safe and thriving cannabis market. Organizations like the Cannabis Regulators Association (CANNRA) play a pivotal role in facilitating dialogue and sharing best practices among regulators and industry stakeholders.
Curtains Drawn: Reflecting on Insights, Looking Forward to Action
As we draw the curtains on yet another insightful edition of our Policy Matters series, we extend our heartfelt gratitude to our readers, esteemed speakers, and the unwavering guidance of NCIA’s Policy Co-Chairs, Khurshid Khoja and Michael Cooper. Their steadfast commitment to fostering dialogue and collaboration has been instrumental in shaping the discourse surrounding cannabis regulation and policy.
To delve deeper into these discussions and gain comprehensive insights on California cannabis regulations, we encourage you to view the complete recording of the webinar on our YouTube channel. There, you’ll find a wealth of information and perspectives from our esteemed speakers, shedding light on the complexities and opportunities within the California cannabis regulatory landscape.
From the corridors of Maryland to the rugged landscapes of Maine, and the vibrant markets of Michigan and California, each edition has illuminated the diverse spectrum of regulatory frameworks and industry dynamics shaping the cannabis landscape. As we eagerly anticipate future editions, let us continue our pursuit of knowledge, empathy, and innovation, forging a path towards a more equitable and prosperous cannabis industry for all stakeholders involved.
California Stakeholder Summit: Bridging Policy and Practice
We hope you’ve made plans to join us for our California Stakeholder Summit, taking place later this month on Thursday, February 22nd in Sacramento, CA. This event promises to be a pivotal moment for stakeholders across the California cannabis industry as we convene to explore topics including proposed state legislation affecting hemp-derived cannabinoid products and the impact of federal rescheduling on state-legal markets.
Nicole Elliott will be speaking on a panel alongside Congresswoman Barbara Lee (D-Oakland) and moderated by NCIA Director of Government Relations Michelle Rutter Friberg. Together, they will delve into the complexities of federal rescheduling and its implications for California’s cannabis regulations and dynamic marketplace.
Join us as we bridge the gap between policy and practice, forging meaningful connections and driving forward progress in one of the nation’s most influential cannabis markets. Don’t miss this opportunity to be part of the conversation shaping the future of cannabis regulation in California and beyond. Register now to secure your place at the California Stakeholder Summit 2024.
How to Use Chat GPT to Automate Routine HR Tasks and Revolutionize HR
Human Resources professionals frequently find themselves juggling several jobs in the fast-paced business world of today, from hiring and onboarding to employee engagement and compliance. The good news is that Chat GPT, a game-changing tool, may assist HR teams in streamlining their processes and liberating critical time. With the help of this potent AI technology, mundane HR tasks may be automated, freeing up HR experts to concentrate on more strategic objectives. In this blog post, we’ll look at how to use Chat GPT to transform your HR department in an approachable and polished way.
The Chat GPT Revolution
The days of paper applications and manual record-keeping are long gone in the world of human resources. With Chat GPT, a new era of automation and efficiency is now being ushered in. Let’s explore Chat GPT’s definition and operation.
What is Chat GPT?
Chat GPT is a cutting-edge AI technology developed by OpenAI. It’s based on the GPT-3.5 architecture, which stands for “Generative Pre-trained Transformer 3.5.” This AI model has been trained on vast amounts of text from the internet, making it incredibly proficient in understanding and generating human-like text.
How does Chat GPT work?
Chat GPT is fundamentally a language model. It can comprehend text input and produce text output based on that input. It reacts to your inquiries or cues with text that is logical and contextually appropriate.
The secret to Chat GPT’s effectiveness is its capacity to anticipate the following word or phrase in a given text, depending on the input’s context. It accomplishes this by examining patterns and connections developed throughout its training. Chat GPT is a versatile tool for automating numerous HR processes because of its predictive power.
Automating Routine HR Tasks
We’ve gone over the fundamentals of Chat GPT; now, let’s see how you can automate daily HR tasks using it. Operations will be streamlined as you bid farewell to the laborious and time-consuming components of HR.
Resume Screening and Candidate Matching
The process of looking through resumes and selecting qualified candidates is one of the most time-consuming activities for HR professionals. You can automate the initial screening procedure or create screening questions with Chat GPT. The AI only needs a job description to swiftly scan and match resumes to the necessary credentials and abilities.
Employee Onboarding
A significant amount of paperwork and administrative work goes into onboarding new staff. Chat GPT can create customized onboarding materials, welcome emails, and give new employees important details about the business, culture, and policies. This guarantees that your new team members integrate seamlessly.
Answering Frequently Asked Questions (FAQs)
Employees frequently ask typical questions to HR departments concerning benefits, rules, and practices. The requirement for HR professionals to continuously respond to the same inquiries can be eliminated by programming Chat GPT to deliver rapid and accurate answers to these FAQs.
Scheduling Interviews and Meetings
It can be quite difficult to coordinate the calendars for meetings, interviews, and training sessions. By recommending open timeslots and distributing invitations on behalf of HR specialists, Chat GPT can eliminate the headache of scheduling.
Compliance and Policy Updates
It’s important to stay current with evolving HR legislation and regulations. By keeping track of regulatory changes and changing corporate policies as necessary, Chat GPT can assist HR departments in maintaining compliance. Additionally, it has the ability to notify staff members of significant policy modifications.
Setting Up Chat GPT for HR Automation
Now that you’re enthused about Chat GPT’s ability to automate HR duties, let’s talk about how to set it up successfully. Here’s a how-to manual to get you going:
Choose the Right Chat GPT Platform
There are numerous platforms that provide access to Chat GPT, including the OpenAI API and specific HR automation applications that use Chat GPT. Consider your alternatives carefully, and pick the one that best satisfies the requirements of your company.
Define Your HR Tasks
Determine which particular HR duties you wish to automate. Start with the tasks that require the most repetition and time. This might involve screening resumes, onboarding, responding to frequently asked questions, or any other process you think is amenable to automation.
Train and Customize Chat GPT
Chat GPT can be customized to comprehend HR-specific terms and procedures. By giving the AI model examples of prompts and replies linked to HR, you’re able to fine-tune it. This ensures that it produces accurate and contextually appropriate content.
Integration with HR Systems
Integrate Chat GPT with your current HR systems and applications to achieve seamless automation. This will give the AI access to employee details, timetables, and other pertinent data for efficiently completing work.
Testing and Monitoring
Make sure Chat GPT performs as intended by conducting extensive testing prior to implementing it fully for HR automation. To increase accuracy and effectiveness, regularly assess its performance and make any necessary improvements.
Benefits of Using Chat GPT in HR
You’ll immediately recognize the numerous advantages that Chat GPT for HR automation provides to your division and to your company as a whole as you start to adopt it:
Time Savings
The time that routine tasks take up can be freed up by automating them, allowing HR professionals to devote more of their time to strategic projects like hiring, training, and workforce planning.
Increased Efficiency
Chat GPT works around the clock ensuring that HR duties are finished on time and consistently. It doesn’t get tired, making it a dependable instrument for sustaining effectiveness.
Enhanced Employee Experience
By delegating administrative duties to Chat GPT, HR staff can concentrate more on delivering individualized support and a better overall experience for employees, which will increase employee satisfaction.
Scalability
Chat GPT may scale up with your business as it expands. Without the need for extra HR workers, it can manage an expanding workload, saving on hiring fees.
Cost Savings
The cost savings from automating HR tasks can be substantial due to lower personnel expenses and improved operational effectiveness. Both your HR department and the bottom line will benefit from this.
Overcoming Challenges
While Chat GPT offers immense benefits for HR automation, there are some challenges to be aware of and address:
Data Privacy and Security
Prioritizing data privacy and security is crucial when integrating Chat GPT with HR systems. Assure the security of sensitive employee data and compliance with applicable laws like GDPR or HIPAA.
AI Bias
Biases existing in the data can be inherited by AI models like Chat GPT. To maintain fair and equitable HR practices, be diligent in monitoring and minimizing bias.
User Adoption
Some workers might be reluctant to use AI for HR-related questions. To promote user adoption and foster confidence in the technology, offer training and assistance.
Regular Updates and Maintenance
AI models must be regularly updated and maintained in order to remain precise. Allocate the funds for ongoing development and adaptability to shifting HR requirements.
Adopting technologies like Chat GPT can be a game-changer in the constantly evolving field of HR. Routine duties can be automated so that HR professionals can concentrate on what is most important—people. With the appropriate tools in place, your department can lead the way in innovation and productivity in the promising future of HR.
It’s time to leverage Chat GPT’s potential and transform your HR processes. Say good-bye to the routine and hello to an HR department that is more strategic, effective, and fun!
Policy Matters: Charting the Course – Examining Michigan’s Cannabis Regulations
Policy Matters is our new insightful #IndustryEssentials webinar series dedicated to unraveling the intricate world of regulatory and policy dynamics within the cannabis industry. Each episode will feature engaging discussions where regional regulators, industry leaders, legal experts, and policy influencers come together with NCIA leadership to shed light on the most pressing issues facing cannabis professionals.
As we continue our journey through the enlightening “Policy Matters” series, we’re thrilled to bring you the third installment, featuring Brian Hanna, Executive Director of Michigan’s Cannabis Regulatory Agency (CRA). Building on the success of our previous episodes, where we delved into the strategic aspects of cannabis market design and explored the potential implications of federal cannabis reform, this session promises to provide even more insights into the dynamic world of cannabis regulation.
In this episode, we sit down with Brian Hanna to unravel his unique pathway to the helm of Michigan’s Cannabis Regulatory Agency. Join us for a candid conversation that not only explores Brian’s background but also dives deep into his experiences overseeing the evolution of cannabis regulation as markets mature. Drawing lessons from his extensive journey, Brian will share invaluable advice for fellow cannabis markets and shed light on the priorities and initiatives at the CRA.
This episode isn’t just about regulations; it’s about people. Discover the personalities behind the policies, gain strategic advice for navigating complex regulatory landscapes, and understand the nuances of enforcing change in the cannabis industry. As part of the Cannabis Regulators Association (CANNRA), Brian brings a wealth of knowledge and perspectives that will contribute to a comprehensive understanding of the ever-changing regulatory landscape.
Don’t miss your chance to be part of this engaging conversation. Join us for Episode 3 of “Policy Matters” as we continue to demystify the intricate world of cannabis policy and empower you with the knowledge to thrive in this dynamic industry.
Reserve your spot today, stay informed, and stay ahead in the conversation that’s shaping the future of cannabis policy. The journey continues, and your participation matters.
How Compliant Tech Bolsters Cannabis License Application
Are you contemplating entering the burgeoning cannabis retail market? Whether you plan to open a dispensary in states that recently legalized recreational cannabis, like Maryland and New York, or any legacy states that are still awarding new licenses, the first and most crucial step towards success is ensuring that your cannabis retail license application meets all legal requirements. In this blog post, we’ll explore how compliant cannabis technology can be your guiding light and help you strengthen your license application, helping you navigate the intricate landscape of cannabis laws and regulations.
1. Grasping the Universal Elements in Licensing Requirements
The cannabis industry is a patchwork of regulations, with licensing requirements varying significantly from state to state. Yet, there are shared elements, such as legally binding sales limits, mandatory reporting to government agencies, and indispensable seed-to-sale cannabis product tracking. These commonalities are crucial, and you lay a strong foundation for your journey by understanding and adhering to them. Partnering with a reputed cannabis technology provider and using advanced cannabis software that automates all these requirements at your dispensary will demonstrate your commitment to compliance.
2. Mastering Cannabis Inventory Management
Effective cannabis inventory management is not just the key to your business’s success, it is also the linchpin to obtaining your cannabis retail license. Demonstrating proficiency in this area, including how you will accurately track and report inventory to your jurisdiction, is vital for compliance and regulatory adherence. With the help of the right cannabis inventory management system integrated into your cannabis POS, you can easily corroborate cannabis inventory requirements in your license application.
3. Ready-to-implement Tech Solutions for Key Challenges
If your chosen cannabis software provider provides multiple solutions, you can tackle the following essential aspects of your license application:
Cannabis POS Requirements: The right cannabis POS solution significantly reduces human errors and ensures precise product tracking. Incorporating it into your business shows your dedication to accurate compliance.
Automation for Compliance: Utilizing automated technology to oversee compliance matters, like reporting, purchase limits, and operational hours, underscores your commitment to regulatory conformity.
Local Tracking System Interface: Crafting a strategy for seamless interaction with the local state/provincial tracking system is imperative. This demonstrates your readiness to operate within the regulatory framework.
Peak Days Support: How the cannabis retail software you choose will support the busiest cannabis retail days of the year is an essential consideration. Being prepared for high-demand periods is a mark of a well-prepared dispensary business.
Customer Privacy & Data Protection: Developing a plan for safeguarding customer privacy and proprietary information at your dispensary establishment is critical for responsible and secure operation. With the right software, your customer data will always be secure, and your dispensary will remain compliant.
Multi-Location Inventory: For those with aspirations of business expansion, overseeing inventory across multiple locations is a strategy that can demonstrate your readiness for growth. This is where advanced cannabis software becomes even more crucial.
4. Tailored to Your State’s Regulatory Concerns
Cannabis technology can be customized to address the specific regulatory concerns of your state. Having technology that is adaptable to the nuances of your region is a key asset. This technology is your ultimate companion in navigating the complexities of regulations, helping you successfully secure your legal dispensary license and become a part of this rapidly growing industry. To ensure that your license application meets all dispensary tech and compliance requirements, download Cova’s Free Handbook, which is a great resource to help you submit a successful cannabis retail license application in your state.
Navigating the New Normal: A Regulator’s Outlook on Federal Momentum | 10.26.23 | Policy Matters
Welcome to the second edition of our new Policy Matters series, dedicated to unraveling the intricate world of regulatory and policy dynamics within the cannabis industry. In the previous edition of Policy Matters, we had the privilege of hosting Will Tilburg from the Maryland Cannabis Administration, who shared his perspectives into the strategic aspects of designing a thriving cannabis market while meeting regulatory standards. This month, we continue our exploration into the world of cannabis policy, focusing on the potential implications of federal cannabis reform and recommended preparations for various stakeholders, including regulators, industry players, and the public.
In this #IndustryEssentials webinar series, we aim to provide Main Street cannabis operators valuable insights from regulators, industry experts, and advocates to keep you informed about the latest developments and challenges in the ever-evolving cannabis landscape. This article provides a comprehensive summary of the discussions, speaker highlights, and key takeaways from the event, continue reading and view the full recording below.
John Hudak: A Transition from Academia to Public Service
Our guest speaker for October’s edition of “Policy Matters”, John Hudak, serves as the Director of the Office of Cannabis Policy in Maine, a role he took on after serving as a senior fellow at the Brookings Institution. His background is an interesting blend of academic expertise and hands-on experience in state government and he touched on how this transition reflects his strong commitment to public service and his desire to implement real-world policies.
Hudak emphasized the challenges of engaging with industry stakeholders and regulators, even from a state perspective. He highlighted the importance of good public policy that not only benefits the cannabis industry but also safeguards the well-being of the people of Maine. His insights underscored the need for a balanced approach in crafting cannabis policies that are in the best interest of all stakeholders.
The Significance of Cannabis Rescheduling
The recent rescheduling recommendations of cannabis was discussed as great momentum in the right direction on the path to federal cannabis reform. While it wasn’t expected to lead to full descheduling, rescheduling still represents a positive step forward. This shift in classification may offer some much-needed tax relief for an industry that has faced considerable financial challenges, especially for smaller businesses.
The change in cannabis classification may also prompt a reevaluation of state-level business deductions, aligning them more closely with federal tax codes. Additionally, it was noted that the optics of President Biden initiating the rescheduling process were noteworthy, given his history on drug policy. However, it was emphasized that federal legalization should only occur when the government is well-prepared to manage the potential repercussions to avoid any undesirable outcomes.
Congressional Challenges to Federal Cannabis Reform
Michelle Rutter Friberg, NCIA’s Director of Government Relations, joined the discussion this month, shedding light on the challenges related to congressional action or inaction in the context of federal cannabis reform. She raised concerns that Congress might view its work as done if rescheduling takes place and that the historical difficulty in reaching a consensus on various issues within Congress poses a potential threat to further federal cannabis reform.
Years of congressional inaction have led to market consolidation, impacting small businesses and creating disparities within the industry. These insights highlighted the inherently political nature of the current reform process. Michelle also mentioned President Biden’s campaign promise to reform cannabis policies, which continues to influence the ongoing debate.
Balancing Politics and Cannabis Policy
Khurshid Khoja, NCIA’s Policy Co-Chair & Co-Host of Policy Matters, contributed his perspective to the discussion, recognizing that rescheduling is indeed a positive step as it acknowledges the medical uses of cannabis. He emphasized that the cannabis industry would welcome any form of tax relief that may come with rescheduling. The speakers collectively explored the fears and expectations related to rescheduling and its potential impact on the industry. They also discussed the importance of cautious regulation and research-backed medical claims while stressing the importance of protecting small businesses and ensuring they are not left behind during the reform process.
John Hudak shared further insights into the importance of collaboration between federal and state regulators with the challenges of shared jurisdiction between federal and state authorities being highlighted, particularly concerning public health and safety. Hudak emphasized the need for guidance or regulations from the Food and Drug Administration (FDA) to provide clarity for both regulators and the industry. The benefits of standardization in labeling and packaging across states were also discussed, with an emphasis on reducing burdens for small cannabis businesses.
Hudak’s approach to preparing Maine for federal legalization differs from how other states might approach it. Rather than rushing to issue new rules or guidance based on assumptions, he emphasized the importance of crafting contingency plans. Such plans would allow states to be ready for various scenarios post-federal legalization, rather than being caught flat-footed. He explained that they are considering unknown, known, and nearly guaranteed aspects of federal legalization to ensure they are well-prepared.
Hudak cited the importance of labeling standards, as these are among the regulatory aspects that are likely to be implemented. Drawing from past experiences with federal reforms, such as the Affordable Care Act and HIPAA, he illustrated the significance of state preparation and the impact it has on successful implementation.
Audience Question and Opportunities for Industry Engagement
An audience question by Tucker Holland (principal of Blooming Member Entourage Cannabis, an Oregon infused product manufacturer) raised the necessity of federal descheduling leading to federal re-regulation. The question emphasized that states already regulate their individual markets, and there was interest in exploring a pathway where federal responsibility might be pushed to the states.
In response, the speakers discussed the complexities of the issue and the need for effective collaboration between state and federal regulators. While the specifics of such collaboration remain a work in progress, the role of state regulators remains pivotal in shaping the future of cannabis regulation.
Conclusion
In conclusion, the insights shared during this Policy Matters webinar shed light on the complexities and challenges associated with federal cannabis reform. From the significance of rescheduling to the impact of taxation and market consolidation, the conversations between the panelists highlighted the need for cautious and well-informed policies. The discussions also underscored the importance of industry engagement and active participation in shaping federal regulations. This is a pivotal moment for the cannabis industry, and it is clear that industry stakeholders have a role to play in influencing the path forward.
The journey towards federal cannabis reform is an ongoing process, and it’s imperative that industry stakeholders, advocates, and regulators work together to navigate the challenges and opportunities that lie ahead. With your commitment to informed and balanced policies, we can continue to move forward, fostering an environment that benefits all members of the cannabis community. Join NCIA today to be a part of this influential movement.
Watch the Full Discussion on YouTube
If you’re eager to dive deeper into this insightful conversation, we encourage you to watch the full webinar on NCIA’s official YouTube channel. This video provides an opportunity to absorb every detail, gain a comprehensive understanding of the issues discussed, and explore the valuable insights offered by our panel of experts.
The Path Forward
As the cannabis industry continues to evolve and adapt, staying informed and engaged remains crucial. Opportunities like the NCIA’s committee applications, industry events, and educational sessions provide avenues for individuals and businesses to get involved and make their voices heard.
Last month, we had the opportunity to gain valuable insights from Will Tilburg of the Maryland Cannabis Administration, shedding light on the challenges and successes of of launching an adult-use cannabis market in record time. This month, we’ve explored the critical topic of preparing for federal cannabis reform, its potential implications for various industry stakeholders and the nuanced aspects surrounding it.
Stay tuned for future editions of Policy Matters, where we’ll continue to tackle the most pertinent issues in the cannabis industry, providing you with valuable insights and fostering dialogue on the policies that shape the future of cannabis in the United States. Your voice in the development of common sense policy matters, and together, we can make a difference.
Welcome to the National Cannabis Industry Association’s (NCIA) insightful webinar recording, “Committee Insights: Where Risk Assessment Integrity Meets Policy.” Hosted by NCIA’s Cannabis Manufacturing Committee and originally broadcast on Tuesday, October 24th, 2023, this session provided a deep dive into the complex but critical intersection of cannabis industry risk assessment and policy development. This blog post will highlight key discussions and insights from the panel, offering a condensed overview of the critical issues explored during the webinar, continue reading and view the full recording below.
Comprehensive Risk Assessment for Vape Product Manufacturers
The panelists underscored the importance of thorough risk assessments for vape product manufacturers, especially in the highly regulated cannabis and hemp sectors. The conversation centered on essential areas of concern, including the potential for fraud, liability, and the significance of ingredient selection, particularly terpenes. Material of construction and employee safety were also key factors that were addressed.
Hardware Risks and Due Diligence
The webinar uncovered the risks associated with hardware components and vendors. It shed light on the due diligence required when introducing new vape products, which includes vetting hardware suppliers and partners. Addressing concerns related to shrinkage and theft was another significant aspect of risk management. Additionally, the panel stressed the importance of setting safety guidelines based on industry standards such as ASTM.
Safety Standards and Ingredient Considerations
The discussion dived into the implications of safety standards, especially ASTM, and their role in determining acceptable safety levels within the industry. The panel emphasized the importance of ingredient considerations, particularly in preventing E-cigarette or Vaping Product Use-Associated Lung Injury (EVALI). Risk assessment for ingredients was a major focus, as it plays a critical role in product safety and integrity.
Implications of Fraud and Counterfeit Products
A crucial point discussed was the far-reaching implications of fraud, counterfeit products, and negligence within the cannabis and hemp industry. The panelists delved into the legal considerations when unknowingly selling dangerous products. They also highlighted the industry’s ongoing struggle with counterfeiting and the need for robust prevention measures to protect consumers.
Regulatory Challenges and Industry Growth
The webinar touched upon the challenges of navigating regulatory environments for both regulators and operators. The panelists emphasized the need for striking a balance between regulation and innovation to ensure the industry’s growth while maintaining product safety. The conversation also addressed the evolving landscape of marketing and advertising regulations, emphasizing the need for clear guidance in these areas.
Essential Insights from Industry Experts
Learn more about our distinguished panel of NCIA member experts including hardware & product manufacturers, toxicologists, legal professionals and regulators each of which brought their unique perspective and insights to our comprehensive exploration.
This is the third of five in a multi-part series of #IndustryEssentials webinars. You can watch Parts I & II plus register Part IV & V at the links below.
Episode I – Committee Insights: Mapping the Vape Landscape: Where are We and Where Do We Go from Here?” – [Watch Here]
Episode II – Committee Insights: Cannabis Vaping – Avoid Being an Easy Target – [Watch Here]
Episode IV: Committee Insights: Cannabis Vaping – Beyond the Pen – [Date & Time TBD]
Episode V: Committee Insights: Dabinar Special Edition – Dabbing 101 – [Date & Time TBD]
For access to our full webinar recording archive, featuring 100+ episodes from five separate recurring series, head here.
Join NCIA and Be Part of Future Speaking Opportunities
If you’re eager to share your expertise and insights with our dynamic cannabis community, we encourage you to consider becoming a member of the National Cannabis Industry Association (NCIA). Our member-led committees, such as the Cannabis Manufacturing Committee, offer numerous opportunities to participate in our webinars and events as a speaker. By joining NCIA, you’ll be well-positioned to become a part of our expert panelists in the future. Don’t miss the chance to contribute to meaningful discussions that help shape the cannabis industry.
Learn more about NCIA membership and the benefits it offers here.
Explore Sponsorship Opportunities
For those interested in sponsoring future webinars and events to reach a broad and engaged audience within the cannabis industry, we invite you to fill out our sponsorship inquiry form. Our team will be happy to provide you with more details on how you can collaborate with NCIA to promote your brand and engage with our community.
Your involvement with NCIA opens doors to a wealth of opportunities in the ever-evolving cannabis industry. We look forward to having you as part of our vibrant community!
A Valuable Resource for Industry Professionals
NCIA’s “Committee Insights” series serves as a comprehensive resource for cannabis and hemp industry professionals and this episode offers valuable insights into the critical role of risk assessment and policy development in shaping the future of cannabis operations. By exploring our full recording, you’ll gain invaluable insights and stay informed about the latest developments in the ever-evolving cannabis industry.
Stay Connected with NCIA
Thank you for being a part of our dynamic cannabis community. NCIA’s #IndustryEssentials webinar series is our premier digital educational platform, offering timely and essential insights precisely when you need them. This session is part of our Committee Insights series, produced in collaboration with our member-led committees. Sign up today to receive more industry insights and updates to stay ahead in the evolving cannabis and hemp sectors.
Policy Matters: Navigating the New Normal – A Regulator’s Outlook on Federal Momentum
Join us for the October edition of our new illuminating “Policy Matters” webinar series! In this dynamic session, we’ll dive into the intricacies of cannabis policy from two critical angles. For this month’s episode, we’re shifting the spotlight to the thriving adult-use cannabis marketplace in Maine, featuring our special guest, John Hudak, the Director of the Office of Cannabis Policy at the Maine Department of Administrative and Financial Services.
Discover the unique dynamics of Maine’s cannabis industry, from its regulatory framework to market trends and the challenges faced by industry stakeholders. Gain valuable insights into managing a successful adult-use market while adhering to rigorous regulatory standards. Then, we’ll explore the policy implications of descheduling or rescheduling cannabis, a topic that gained momentum following President Biden’s directive to review its federal classification.
Join our hosts, NCIA Policy Co-Chairs Khurshid Khoja and Michael Cooper and guest speakers, NCIA’s Director of Government Relations Michelle Rutter Friberg and John Hudak, Ph.D, the Director of the Maine Office of Cannabis Policy, as they discuss the potential shifts in cannabis policy, what the process may look like, and what to expect in the coming months.
Needless to say, with multiple federal agencies involved, an election year nearing, and Congress in disarray, this is a complex topic – but policy matters. Stay informed, stay ahead, and be part of the conversation that’s shaping the future of cannabis policy.
Tune in and empower yourself with the knowledge to thrive in this dynamic industry! Reserve your spot today and join us as we continue to unravel the complexities of cannabis policy and regulation.
Panelists:
John Hudak
Director | Maine Office of Cannabis Policy
Committee Insights: Where Risk Assessment Integrity Meets Policy
Join us for Episode 3 of the vape-focused #IndustryEssentials webinar series, brought to you by NCIA’s Cannabis Manufacturing Committee. In this informative session, we will delve into the critical intersection of Risk Assessment Integrity and Policy within the cannabis and hemp industries.
As the cannabis and hemp sectors continue to experience rapid growth, ensuring product safety and integrity is paramount. This webinar will provide industry professionals, policymakers, and stakeholders with the knowledge and insights needed to navigate the complex landscape of risk assessment, compliance, and policy development.
Learning Objectives
• Ingredient Risk Assessment Exploration
• Discuss the Balance of Regulations vs. Innovation
• Gain Insights on Due Diligence for New Products
• Impact of Counterfeiting and Effectiveness of Track & Trace on Authenticity
• Overview of the Global Cannabinoid Containing Product Landscape
• Explore Evolving Advertising and Marketing Regulations
• Precautions for Cross-State Shipping and Product Integrity
• Discover Strategies for Youth Prevention and Emerging Technologies
Panelists:
Gillian Schauer
Executive Director
Cannabis Regulator’s Association
Raza Lawrence
Counsel
Zuber Lawler Group
Shawna Vreeke
Head of Research
True Terpenes
Josh Borodin
Head of Product
GREENTANK
James Granger
Chief Political Officer
Cliintel Capital
Darwin Millard (Moderator)
The GMP Collective
Committee Insights: Cannabis Vaping – Avoid Being an Easy Target
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. The NCIA Committee Insights series showcases content produced in partnership with one of our 14 member-led committees.
Join us for Episode 2 of the vape-related #IndustryEssentials webinar series, presented by NCIA’s Cannabis Manufacturing Committee. In this highly informative session, we’ll delve deep into the world of cannabis manufacturing risk management, focusing on essential tips and strategies to help manufacturers avoid and effectively manage risks associated with the production of cannabinoid-containing products.
The 2019 EVALI outbreak stirred up the cannabis vape industry making some businesses an easy target in the court of public opinion. However, vaping continues to be a popular form of consumption among GenZ users, creating a demand for companies to design safer products and expand their due diligence testing during the product development phase. NCIA’s second vaping webinar of 2023 will sit down with industry experts to discuss what their companies are doing to avoid being an easy target, prevent another EVALI-like crisis, and how to navigate an industry in the absence of regulations.
Learning Objectives:
• Risk assessment and due diligence protocols to determine consumer exposure limits.
• Best practices and manufacturing standards during product development
• Youth prevention strategies
• Insights gained from emissions testing of vape products
Don’t miss this opportunity to stay ahead in the ever-evolving cannabis industry. Register now and join us for an engaging discussion on cannabis manufacturing risk management.
HHS Recommends Rescheduling: Now What? | 9.14.23 | Fireside Chats with NCIA’s Government Relations Team
NCIA’s #IndustryEssentials webinar series is our premier digital educational platform featuring a variety of interactive programs allowing us to provide you timely, engaging and essential education when you need it most. The Fireside Chat series of NCIA’s #IndustryEssentials webinars are an opportunity for industry professionals to hear from our government relations team and guests about the latest developments in federal policy LIVE.
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 recently changed 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.
There’s no doubt this move was an historic one– but what does it mean? What’s next? How will it impact your business? Join NCIA’s Aaron Smith and Michelle Rutter Friberg as they unpack all these questions surrounding cannabis rescheduling impact and more!
America in Miniature Goes Green: Maryland’s Journey to Adult-Use Cannabis | 9.7.23 | Policy Matters
Introducing “Policy Matters” – an insightful new #IndustryEssentials webinar series dedicated to unraveling the intricate world of regulatory and policy dynamics within the cannabis industry. As the cannabis landscape continues to evolve, staying informed about the latest regulations and policies impacting Main Street cannabis operators is crucial for success. Join us for a series of engaging discussions where regional regulators, industry leaders, legal experts, and policy influencers come together with NCIA leadership to shed light on the most pressing issues facing cannabis professionals.
Are you curious about the intricacies of launching an adult-use cannabis market in record time? In the debut episode of our new Policy Matters webinar series we delved into the strategic aspects of designing a thriving cannabis market while meeting regulatory standards. In this exclusive session, NCIA Policy Co-Chairs Khurshid Khoja and Michael Cooper were joined by Will Tilburg, Director of the Maryland Cannabis Administration and President of the Cannabis Regulators Association, to explore invaluable insights into the objectives that drive cannabis regulators and the pitfalls they strive to avoid. Discover the pressing enforcement challenges that are top of mind for cannabis regulators in 2023 and gain a clear understanding of the evolving landscape.
Don’t miss this opportunity to gain an understanding of how policy matters in the fast-paced cannabis sector. Stay informed, stay ahead, and be part of the conversation that’s shaping the future of cannabis policy. Tune in today and empower yourself with the knowledge to thrive in this dynamic industry.
03:40 – Launching an Adult Use Market in 2023 | Were there lessons from the existing medical market and others around the nation that you identified as important, both success stories and pitfalls to avoid?
07:23 – Launching an Adult Use Market in 2023 | What allowed you to move so efficiently and what lessons would you highlight for industry and regulators in new markets rolling-out in the future?
12:48 – Launching an Adult Use Market in 2023 | What are some priorities you have for the months ahead?
16:55 – Launching an Adult Use Market in 2023 | What advice would you give to future regulators on building relationships within the executive branch to prioritize these issues?
22:20 – Social Equity | Can you talk about reserving the first round of adult-use cannabis licenses exclusively for social equity applicants and other recent milestones or developments working with the Office of Social Equity?
28:56 – Social Equity | How has Maryland worked to make its medical cannabis industry more equitable and ensure these goals aren’t undercut as they have been with similar licensing preferences in other states?
34:04 – Enforcement | How did the state set up its enforcement plan? How do you strike a balance in a new market between a complete absence of enforcement and protecting public health?
37:34 – Enforcement | What are some key enforcement priorities for you looking ahead?
41:40 – CANNRA | Can you talk about the Cannabis Regulators Association (CANNRA) purpose, membership, and goals?
44:39 – CANNRA | What are the priorities or goals for your tenure as CANNRA president?
47:20 – Federal Reform & Regulation | What is Maryland doing to address the hemp-derived cannabinoids issue as it relates to protecting public health and unfair competition with adult-use cannabis licensees?
52:10 – Federal Reform & Regulation | As a state regulator, how did you receive the recent HHS recommendation for rescheduling of cannabis to Schedule III?
56:34 – Federal Reform & Regulation | What is the optimal division of labor between state and federal government if cannabis is completely descheduled in the future?
Member Blog: Securing Your Cannabis Venture – Mastering Inspections with Comprehensive Cannabis Insurance
The cannabis industry continues to blaze a trail of growth and innovation, opening numerous opportunities for entrepreneurs and investors. However, this thriving landscape also exposes businesses to unique risks that demand proactive risk management solutions. Insurance plays a pivotal role in safeguarding cannabis ventures from potential losses, making it an essential aspect of responsible business operations. In this blog post, I will explore the critical role of inspections, the challenges they present, and how partnering with a reliable cannabis insurance broker can protect your business interests while mastering the art of inspections.
Understanding the Need for Inspections
The cannabis industry operates under stringent regulations, and inspections are an indispensable component of ensuring compliance. These routine evaluations, carried out by regulatory bodies or insurance carriers, are designed to assess product quality, safety standards, and adherence to legal requirements. While inspections are vital for maintaining high standards within the industry, they also expose businesses to potential vulnerabilities, particularly theft.
The Perils of Theft: Unraveling Insider Threats
As the cannabis industry expands, so does the risk of theft. A concerning issue arises from potential “inside jobs,” where employees or third-party trusted individuals gather sensitive information on-site, posing a significant threat to the operation’s stability. This situation often leads to confusion and concern for clients regarding third-party insurance inspectors who sometimes come on site without communication or vetting.
Clients frequently encounter uncertainty when dealing with these inspectors. They tend to reach out to operators to schedule appointments without confirming the inspector’s affiliation with the insurance carrier or broker. This results in delayed responses, as these calls are often mistaken for telemarketing and disregarded. Unfortunately, this miscommunication can lead to compliance issues with the insurance carrier.
To address this problem, transparent communication between the insurance broker, inspection company, and operator is essential. For example, many clients now ask me to verify the identity of those contacting them before scheduling appointments. I highly recommend this practice to protect clients’ sensitive information.
In this evolving landscape, ensuring security and effective communication is paramount. By taking proactive steps, we can enhance the industry’s growth while safeguarding its integrity.
Transparent Expectations: Building a Solid Foundation
Open and direct communication, coupled with well-defined expectations, serve as the cornerstone for effective inspections within the cannabis industry. My commitment lies in bridging the gap between clients and inspectors, enabling them to familiarize themselves with one another and streamline the scheduling process. A comprehensive comprehension of the inspection procedure, its aims, and the specific areas subject to scrutiny is imperative for businesses. Simultaneously, transparency on the part of insurance carriers regarding inspection protocols and their protective role is crucial for your business’s security.
Embracing a collaborative approach to inspections fosters a strong alliance between businesses and insurers. This synergy guarantees a seamless process that ultimately benefits all stakeholders involved.
Guarding Behind-the-Scenes Details: Protecting Business Operations
In the fiercely competitive cannabis landscape, certain aspects of business operations must be protected with utmost confidentiality. These behind-the-scenes details include proprietary cultivation techniques, security measures, and intricate supply chain arrangements. Recognizing the sensitivity of this information, leading cannabis insurance brokers take extraordinary measures to safeguard such details.
The integrity of inspection processes begins before any inspector sets foot on your cannabis business premises. Reputable cannabis insurance carriers undertake rigorous vetting of third-party inspection companies to verify their credentials and expertise. This stringent evaluation ensures that inspectors adhere to the highest standards and are committed to protecting your business. In cases where an inspector contacts you directly, it is essential to politely reschedule the inspection and promptly inform your insurance broker.
Aligning Real-Time Risks with Comprehensive Insurance Coverage
Beyond regulatory compliance, inspections serve another vital purpose: assessing real-time risks and aligning them with the insurance coverage outlined in your policy. This strategic alignment ensures that your cannabis business is adequately protected against potential losses. Collaborating with your insurance broker to comprehend the risks inspectors evaluate and their significance empowers you to optimize your risk management strategies. By proactively addressing any coverage gaps, your cannabis insurance policy becomes a reliable safety net, allowing you to navigate the dynamic cannabis industry with confidence.
Addressing Unique Industry Challenges: Tailored Cannabis Insurance Solutions
The cannabis industry operates in a state of constant flux, with evolving regulations and market dynamics presenting ever-changing challenges. These unique complexities demand specialized insurance solutions that cater to the specific needs of cannabis businesses. Leading cannabis insurance providers possess an in-depth understanding of industry intricacies, enabling them to craft policies that safeguard against cannabis-specific risks. From crop damage and product recalls to theft issues, these tailored insurance solutions provide comprehensive coverage, assuring businesses of their resilience in the face of adversity.
Overall, inspections and comprehensive cannabis insurance play instrumental roles in securing your cannabis venture against potential risks and losses. Transparent communication and clear expectations before, during and after inspections build trust and foster collaboration between all stakeholders.
Guarding behind-the-scenes details is of utmost importance, and trusted cannabis brokers go the extra mile to protect your business operations from potential breaches. Vetting inspectors diligently ensures the security of the inspection process, preventing unauthorized access to sensitive information.
By aligning real-time risks with comprehensive insurance coverage, cannabis entrepreneurs gain invaluable peace of mind and the ability to navigate the industry confidently. As you embark on your journey in the dynamic cannabis sector, choose a reputable cannabis insurance broker who understands the intricacies of the industry and can offer tailored solutions to safeguard your business interests.
Remember, mastering inspections and harnessing the power of comprehensive cannabis insurance will be your business’s most potent shield in an ever-changing and promising landscape. Embrace the future of the cannabis industry with confidence, knowing that your venture is secured and protected every step of the way.
Member Blog: How to Avoid the 4 Most Common Payroll Mistakes
To achieve your goals in business, your payroll system must be flawless. It is an aspect in which you must strive for perfection whenever possible. Avoiding payroll mistakes in the cannabis industry is especially crucial due to the highly regulated nature of the industry. Compliance with payroll regulations is essential to avoid legal repercussions and penalties from governing agencies. Additionally, accurate and timely payroll ensures proper compensation for employees, and maintaining precise payroll records promotes transparency and accountability, building trust with employees and stakeholders in an industry where transparency is vital.
It is better to be safe by managing your payroll as thoroughly as possible, if not you would be sorry you didn’t. Most people have most likely made these mistakes and have had minor consequences accompanying them. If these mistakes persist, the business owner often pays dearly for them. These common payroll mistakes have cost some their business.
Having Multiple Records for a Certain Payroll
It pays to have all your payroll information in a single database. This enhances security and ensures that you know where to look for your payroll information. If this has been your practice and your business uses tools like HCM software that helps you manage your employees and other business information, then this shouldn’t be much of a problem.
All you’ll have to do is use that same software to manage and process payroll information. If your business documents are disorganized, be sure to have them all in one place.
Not Updating Needed Information
Ensure that you are not complacent by relying on automated software to do everything. The system is not aware that your employee would be changing addresses therefore such info should be entered manually.
That error could lead to mistakes in filling that employee’s taxes as the bills might arrive at the wrong address. As much as simplifying a process is great, you still need to play your path in getting things done.
It would help you to set timely reminders in the system that should help you avoid the mistake of not keeping up with the latest information.
Weak Security System
Confidential information should remain so. To avoid your system being compromised, you should be using a payroll processing system with strong cybersecurity.
This has got to be the costliest mistake common to payroll processing. Every information concerning your business that is not available on your website and to your customers, is most likely not public information. Private information about your business should remain private.
Information in payroll systems is as sensitive as can be. There’s almost every piece of information you need to know about a person, and as such strict rules should apply to keeping them safe. A weak security measure means a weak business and a weak business means trouble.
Inaccurate or Delayed Tax Payments
In calculating taxes absolute precaution is required. If you are not a tax accountant you are probably not so proficient in this calculation. Your tax accountant (if your business has one) should learn how to adequately use the system to avoid delay or inaccuracy.
Bear in mind that inaccurate tax payment makes your business a tax defaulter. Your business as a taxpayer has the duty of tax calculations assigned to an accountant. Note that taxes ought to be paid within the required time bracket. The systems are programmed to make the tax payments when due.
The human capital management system does not only process payroll information but can also tell when employees qualify for federal or state tax credits.
In Conclusion
To maintain payroll accuracy and timeliness in the cannabis industry, it is crucial to avoid payroll mistakes. By opting for a third-party payroll provider like Tesseon you can benefit from our expertise and ensure that your payroll is consistently accurate and delivered on time, regardless of any industry-specific challenges. The Cannabis industry is both very young and extremely regulated, it is imperative that businesses stay vigilant and proactive to avoid costly mistakes.
Committee Insights: Cracking the Code – Unraveling the Challenge of Coverage for Novel 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.
We’ve seen so much interest and had so much fun exploring these topics that we couldn’t wrap it up just quite yet! Next month, NCIA’s Risk Management & Insurance Committee explores why insurance for novel cannabinoids can be such a challenging code to crack…
In this session you’ll learn from our panel of leading risk management, insurance and compliance experts how to navigate liability and legislative loopholes so you’ll better understand exposure alongside a patchwork of federal and state requirements.
You’ll leave this webinar with a better understanding of how novel cannabinoids are defined in various insurance policies, why they’re difficult to insure and the science behind this novel cannabinoid coverage conundrum.
Join us for this insightful webinar as we strive to unravel the complexities of insuring novel cannabinoids and equip you with the knowledge needed to make informed decisions regarding your insurance coverage. Reserve your spot today and crack the code to safeguard your products, operations and workforce!
With recreational marijuana legalized in 23 states, Washington D.C. and Guam, the public continues to broadly favor legalization for medical and recreational purposes. Why then, is it still a challenge for the cannabis industry to access financial services? The short answer: cannabis banking is risky for financial institutions (FIs), and bankers are committed to avoiding unnecessary risk. Historically, FIs have worked to keep funds associated with illegal activity out of their banks and credit unions, so FIs are sensitive to conflicting state and federal cannabis laws. For example, many FIs are regulated by federal agencies, but marijuana is a Schedule I controlled substance.
Navigating the Challenges
However, there are many banks and credit unions that have taken this risk for a variety of reasons, including creating new sources of income, a desire to serve the unbanked in their communities, and supporting the social equity initiatives in the cannabis industry. These FIs are usually discreet about their cannabis banking programs, and it’s often hard to identify them through your typical approach: prowling websites, Google searches or even trade shows (although this has improved over the past 12 to 18 months).
Fortunately, the best approach is also a well-trusted option: word of mouth. Contact lawyers, accountants and bookkeepers in your area. If they represent or work with other local marijuana related businesses (MRBs), they may know who they are banking with or know someone who does. You should also consider contacting the FIs directly, even if you don’t know if they are working with MRBs. You might be surprised to find that they do, and if they don’t, they might redirect you to another FI in the area. Finally, organizations like the PBC Conference team, provide resources to aid your search, including a Cannabis Banking Directory published annually.
Focus your search on credit unions, community banks, and regional banks. We are entering a new phase of cannabis banking with some FIs offering more than just a place to park your cash. A growing number now offer loans, payroll services, business insurance, etc., so take time to see what’s available, compare multiple FIs’ programs, and find the best match for your cannabis-related business’ (CRB) needs.
Be Prepared
Every action taken by an FI, regardless of their location or asset size, is closely scrutinized by state and federal banking regulators, and law enforcement agencies. They want to make sure that banks and credit unions are only working with legitimate and legal state CRBs. Therefore, you can expect an FI to require a combination of the following:
Driver’s license or other acceptable state-issued identification for all account holders
Information on all beneficial owners of the company, not just those who own a percentage of the company above a certain percentage threshold (such as 20%)
Tax returns for the previous year for both the company and the beneficial owners
Financial information such as profit and loss accounts and capitalization tables
A copy of any required state licenses
Operational data such as projected annual sales and number of patients/customers
Corporate formation documents such as articles of incorporation and business plans
Sales transaction data (store reports or invoices) for the past thirty days
Behind the scenes of cannabis banking, FIs must do a lot to ensure that they are onboarding only legitimate CRBs; from collecting and analyzing market transactions to conducting reporting. This means that FIs often have additional staff to fulfill their compliance duties and they invest in software to automate some of their monitoring. FIs invest heavily in banking cannabis and account fees help offset those expenses. This means you can expect to pay account setup fees and monthly account maintenance fees to help cover these costs. Prices have come down in recent years. The days of paying $5,000 per month for an easy deposit account are long gone, but the fees will remain high as long as a lot of oversight and reporting falls on FIs.
Embrace the Journey
FIs are far savvier about detecting MRB activity among their existing customer/member accounts. At this point, it’s not a question of “if” your FI will find out you’re an MRB, but when. Few things are more disruptive to a business than getting a letter from your FI informing you that your account will be closed in thirty days. Don’t put yourself in that position. Additionally, you may be missing out on vital financial and business services by staying “under the radar” and not having a transparent relationship with a bank or credit union. Start looking for a cannabis-friendly bank or credit union today!
Committee Insights | 7.26.23 | Concepts for Regulatory Consideration – Shifting the Conversation from “Cannabis vs. Hemp” to “The Cannabinoids”
NCIA’s #IndustryEssentials webinar series is our premier digital educational platform 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 July 26, we were joined by leading cannabinoid product manufacturers and Cannabis Regulators Association (representing cannabis and hemp regulators across more than 40 states and U.S. territories) to examine different approaches to regulating consumer products containing cannabinoids across the US and discuss the potential for harmonized regulations in the future.
Regulating the cannabinoids is difficult enough, but throw in the challenges associated with cannabinoids derived from marijuana or hemp and the challenges can get even more complicated. Not to mention the debate between intoxicating and non-intoxicating cannabinoids and how to address the risks to public health and safety from these different types of cannabinoids. Then you have the proverbial “cherry on top” with how to address cannabinoids, both naturally occurring and novel, being produced by genetically modified organisms and scientists in the lab. There has got to be a logical way to solve this problem.
One potential solution is shifting the conversation away from cannabis vs. hemp and toward the constituents of concern, the cannabinoids. By regulating the cannabinoids, we can focus the debate on what matters, how to regulate cannabinoid ingredients in a way that is proportional to the level of risk to public health and safety. This ensures we have both a functional and vibrant cannabinoid products market and the means to protect consumers.
Learning Objectives:
• Learn about the similarities and differences between marijuana and hemp regulations for consumer products containing cannabinoids
• Find out what a consumer product containing cannabinoids is and how this concept can be used to promote more common sense regulations
• Listen to new perspectives on the challenges facing the cannabinoid-containing consumer products space and how to more efficiently regulate this marketplace
Curious about the complex world of cannabinoid regulation? Sit back and settle in for an insightful webinar where we delve into the challenges (and solutions!) surrounding cannabinoids derived from marijuana and hemp.
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
Committee Insights: Concepts for Regulatory Consideration – Shifting the Conversation from “Cannabis vs. Hemp” to “The Cannabinoids”
Our minor, novel & synthetic cannabinoid series concludes with Part V looking at different approaches to regulating consumer products containing cannabinoids across the US and provide perspectives from cannabinoid product manufacturers on the impact these varying regulations have on their business.
Regulating the cannabinoids is difficult enough, but throw in the challenges associated with cannabinoids derived from marijuana or hemp and the challenges can get even more complicated. Not to mention the debate between intoxicating and non-intoxicating cannabinoids and how to address the risks to public health and safety from these different types of cannabinoids. Then you have the proverbial “cherry on top” with how to address cannabinoids, both naturally occurring and novel, being produced by genetically modified organisms and scientists in the lab. There has got to be a logical way to solve this problem.
One potential solution is shifting the conversation away from cannabis vs. hemp and toward the constituents of concern, the cannabinoids. By regulating the cannabinoids, we can focus the debate on what matters, how to regulate cannabinoid ingredients in a way that is proportional to the level of risk to public health and safety. This ensures we have both a functional and vibrant cannabinoid products market and the means to protect consumers.
Panelists will conclude by discussing what harmonized regulations for consumer products containing cannabinoids might look like in the future.
Learning Objectives:
• Learn about the similarities and differences between marijuana and hemp regulations for consumer products containing cannabinoids
• Find out what a consumer product containing cannabinoids is and how this concept can be used to promote more common sense regulations
• Listen to new perspectives on the challenges facing the cannabinoid-containing consumer products space and how to more efficiently regulate this marketplace
Panelists
Chris Hope (Moderator)
Founder and Consultant
Sequoia Management Group
James Granger
Chief Political Officer
Cliintel Capital Group
Darwin Millard
Chief Scientific OfficerCanada
Final Bell
Keith Butler
CEO
OP Innovates / Naturia+
Cassin Coleman
Founder
Cassin Consulting
Gillian Schauer
Executive Director
Cannabis Regulators Association
Committee Insights | 7.13.23 | Know Your Hazards – Occupational Health and Safety Considerations in Cannabinoid Ingredient Manufacturing
NCIA’s #IndustryEssentials webinar series is our premier digital educational platform 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 July 13, we were joined by members of NCIA’s Cannabis Manufacturing, Scientific Advisory and Hemp Committees for an in-depth discussion highlighting the occupational health and safety considerations to make during the manufacture of cannabinoids and provide recommendations for mitigating risk.
There is no mistaking that manufacturing cannabinoids is here to stay. It is more and more prevalent to see historically plant/naturally derived bulk ingredients being manufactured in a controlled environment in the lab or through innovative processes like precision fermentation. It is likely that bulk ingredient manufacturing of cannabinoids will go this route too.
For cannabinoids like HHC, that do not exist naturally in the plant or in high enough quantities to be commercially viable for extraction, it is most certainly the case that manufacture of these compounds will occur in the lab. To produce these compounds safely, we can luckily look toward existing regulations and occupational health and safety guidelines for producing novel ingredients for use in foods and non-foods.
Learning Objectives:
• Recognizing common occupational safety hazards associated with manufacturing cannabinoids and recommendation to mitigate these hazards
• Learning the different occupational safety considerations between isolation and purification of naturally occurring cannabinoids and the manufacture (synthesis) of cannabinoids in the lab
• Understanding the special safety considerations that processes like hydrogenation and others have and why these are critical to mitigating liability for your business
The cannabis industry has experienced rapid growth in recent years, with more and more states legalizing its use for medical and recreational purposes. As a result, cannabis dispensaries are becoming increasingly popular, with many people visiting them for the first time. For dispensary owners, managers, and budtenders, it’s essential to provide a positive customer experience to build brand loyalty and attract repeat business. This blog will discuss the importance of focusing on the customer experience at cannabis dispensaries and how understanding terpenes, cannabinoids, and THC percentages can improve the overall experience for both new and experienced users.
Understanding the Customer Experience
What makes a great customer experience at a cannabis dispensary? A positive experience can be characterized by:
Knowledgeable Staff:
Budtenders and other staff members should be well-trained and able to provide accurate and easily digestible information on various cannabis products, including their effects and appropriate dosages.
Welcoming Atmosphere:
Dispensaries should be clean, well-organized, and aesthetically pleasing, making customers feel comfortable and at ease during their visit.
Product Selection:
A wide variety of high-quality cannabis products should be available to cater to the diverse preferences and needs of customers.
Personalized Recommendations:
Budtenders should be able to make personalized recommendations based on the customer’s preferences, desired effects, and level of experience with cannabis.
Terpenes, Cannabinoids, and THC: Key Components of Cannabis
To provide an exceptional customer experience, it’s essential for dispensary staff to understand the key components of cannabis, including terpenes, cannabinoids, and THC percentages. These components play a significant role in the overall effects of cannabis and can help staff make tailored recommendations for customers.
Terpenes:
Terpenes are aromatic compounds found in many plants, including cannabis. They give each strain its unique aroma and taste, and they can also have therapeutic effects. There are over 100 different terpenes in cannabis, with some of the most common ones being myrcene, limonene, and pinene. Understanding the terpene profile of a specific strain can help staff recommend products based on the desired flavor and aroma, as well as the potential therapeutic benefits.
Cannabinoids:
Cannabinoids are the chemical compounds found in cannabis that interact with the body’s endocannabinoid system, producing various effects. Many Cannabis products advertise “full-spectrum” CBD, meaning that the product not only contains CBD, but can also contain the other cannabinoids as well as terpenes, essential oils, and up to 0.3% THC. There are over 100 different cannabinoids in cannabis, with THC (tetrahydrocannabinol) and CBD (cannabidiol) being the most well-known. THC is responsible for the psychoactive effects of cannabis, while CBD has various therapeutic effects without causing a “high.” Dispensary staff should be familiar with the different cannabinoids and their effects to help customers choose products based on their desired experience.
THC Percentages:
The THC percentage of a cannabis product indicates the concentration of THC, which largely determines the psychoactive effects of the product. Generally, higher THC percentages lead to more potent effects. However, it’s important to note that the overall effects of a cannabis product are influenced by other factors, such as the terpene profile and the presence of other cannabinoids. Dispensary staff should be able to explain the significance of THC percentages and guide customers in selecting products with appropriate potency levels.
Educating Customers and Tailoring Recommendations
Dispensary staff should prioritize educating customers about terpenes, cannabinoids, and THC percentages to help them make informed decisions about their purchases. By understanding these components, customers can better tailor their cannabis experience to their preferences and needs.
For example, a customer looking for a relaxing experience may be interested in a strain high in myrcene, a terpene known for its sedative and relaxing effects. In contrast, someone seeking a more uplifting and energizing experience might prefer a strain with a higher concentration of limonene, which is associated with elevated mood and increased energy. Additionally, customers with little to no experience with cannabis may prefer strains with lower THC percentages to avoid overwhelming psychoactive effects.
When assisting customers, dispensary staff should ask about their preferences, desired effects, and experience level with cannabis. Based on this information, they can recommend strains and products that align with the customer’s goals while considering the terpene profile, cannabinoid content, and THC percentage. This personalized approach can help customers feel more confident in their purchases and lead to a more satisfying experience.
For HR Professionals: Training and Development
To ensure that dispensary staff can effectively educate customers and provide tailored recommendations, it’s crucial for HR professionals to invest in comprehensive training and development programs. Training should cover a wide range of topics, including:
Cannabis Fundamentals:
Staff should have a solid understanding of cannabis basics, such as the differences between indica, sativa, and hybrid strains, and the various forms of cannabis product, methods of ingestion and their varying timing of effects (e.g., flower, edibles, concentrates, tinctures, and topicals, vaping, eating, and drinking).
Terpenes, Cannabinoids, and THC:
As discussed earlier, staff should be well-versed in the role of terpenes, cannabinoids, and THC percentages in determining the effects of cannabis products.
Customer Service Skills:
Staff should be trained in effective communication, active listening, and empathy to better understand and serve their customers.
Compliance and Regulations:
Dispensary staff should be knowledgeable about state and local regulations regarding cannabis sales, as well as safety protocols and best practices for handling cannabis products.
By providing thorough training and development opportunities, HR professionals can ensure that dispensary staff are equipped to deliver an exceptional customer experience.
The Role of Technology in Enhancing the Customer Experience
As the cannabis industry continues to grow and evolve, technology is playing an increasingly important role in enhancing the customer experience at dispensaries. In this section, we’ll explore several innovative technologies and tools that can help dispensary owners, managers, and staff provide an even better experience for their customers.
Point-of-Sale (POS) Systems:
Modern POS systems designed specifically for cannabis dispensaries can streamline the sales process and improve the customer experience. These systems can track customer preferences, manage inventory, calculate taxes, and ensure compliance with state and local regulations. By investing in a robust POS system, dispensaries can provide a more efficient and personalized service for their customers.
Digital Menus:
Instead of relying on printed menus that can quickly become outdated, dispensaries can use digital menus to display their product offerings. These menus can be easily updated to reflect current inventory, and they can also include detailed information about each product, such as terpene profiles, cannabinoid content, and THC percentages. By providing customers with easy access to this information, digital menus can help them make more informed decisions about their purchases.
Online Resources and Mobile Apps:
Dispensaries can enhance the customer experience by offering online resources and mobile apps that provide valuable information and tools related to cannabis consumption. For example, they can develop educational content about terpenes, cannabinoids, and THC percentages or create interactive tools that help customers determine their ideal dosage based on their preferences and experience level. By providing customers with access to these resources, dispensaries can support them in their cannabis journey and help them make more informed decisions.
Customer Engagement and Community Building
Another crucial aspect of providing an exceptional customer experience at cannabis dispensaries is fostering a sense of community and engagement among customers.
Events:
Hosting events such as product launches, tastings, and guest speaker sessions can provide customers with an opportunity to learn more about cannabis, sample new products, and connect with other like-minded individuals. These events can also help establish a dispensary as a trusted source of information and a hub for the local cannabis community.
Educational Workshops:
Dispensaries can offer workshops that focus on various aspects of cannabis, such as understanding terpenes, cannabinoids, and THC percentages, cooking with cannabis, or cultivating cannabis at home. These workshops can help customers gain a deeper understanding of cannabis and its various uses, ultimately improving their overall experience.
Social Media:
Actively engaging with customers on social media platforms can help dispensaries stay connected with their audience, provide real-time updates on products and promotions, and gather valuable feedback. Dispensaries can also use social media to share educational content, answer customer questions, and participate in industry-related conversations.
Loyalty Programs:
Dispensaries can implement loyalty programs that reward customers for their repeat business, encouraging them to return and further engage with the dispensary. Loyalty programs can include discounts, exclusive promotions, or early access to new products, and can be an effective way to strengthen the customer-dispensary relationship.
Focusing on the customer experience at cannabis dispensaries is crucial for building brand loyalty, attracting repeat business, and maintaining a competitive edge in the growing cannabis industry. Dispensary owners, managers, and budtenders must prioritize educating customers about terpenes, cannabinoids, and THC percentages to help them make informed decisions and tailor their cannabis experience to their preferences and needs. HR professionals play a key role in ensuring that staff receive comprehensive training and development, enabling them to provide exceptional service and create a positive customer experience. By investing in the customer experience, dispensaries can set themselves apart and thrive in the competitive cannabis market.
Committee Insights | From Lab to Label: Safeguarding Consumers in the Cannabinoid Product Landscape
NCIA’s #IndustryEssentials webinar series is our premier digital educational platform 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 June 13, we were joined by members of NCIA’s Cannabis Manufacturing, Scientific Advisory and Hemp Committees for an in-depth discussion of the current cannabinoid testing & labeling landscape alongside complications compounding consumer safety and product manufacturing concerns.
Consumer products that contain cannabinoids are a popular new consumer product category sweeping the United States. Whether these consumer products are manufactured using cannabinoids derived from cannabis or hemp, consumers deserve to know what they are consuming.
Truth in labeling is critical to providing cannabinoid content information to a consumer so they can make an informed purchase decision and in ensuring consumer safety. However, with so many different label content requirements from state to state for consumer products containing cannabinoids, this lack of consistency can lead to potential risks to the end consumer.
This is especially true when the majority of cannabinoid product manufacturers are dependent on third-party data during product manufacturing and compliance testing. This interdependence between testing laboratories and product manufacturers makes it all the more important that label content requirements are both achievable from a manufacturing standpoint without being overly burdensome for regulators to verify and do not endanger public health and safety.
In this webinar, our panelists explored about the current state of America’s somewhat-monitored cannabinoid-product marketplace, and examined several of the issues related to cannabinoid quantification, cannabinoid content declarations, and label claim verification and how these relate to consumer safety.
Learning Objectives:
• Learn about the potential risks associated with untested, unlabeled products both for the business owner and as a consumer
• Review the current landscape of cannabinoid testing requirements, how they vary state to state and the role 3rd party labs play in the picture
• Understand the nuances with label content compliance and implications on label claims
• Explore data integrity issues preventing consumers from making informed decisions
• Share best practices for what the the industry should do, what consumers can do and what regulators need to do
Panelists:
Paul Coble
Technology Attorney
Harris Bricken Sliwoski LLP
Matthew Johnson
Vice President, Risk Services
QuadScore Insurance Services
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 Blog: A Novel Cannabinoid Conundrum – Loopholes, Liability, and Legislation
by Matthew Johnson and Doug Esposito members of NCIA’s Risk Management and Insurance Committee
For better or for worse, the cannabis industry is easily the most fascinating experiment in state regulation that this country has ever seen.
Rules vary widely from state to state.
Product testing requirements lack uniformity.
Packaging and labeling are a compliance nightmare.
State laws aren’t the only things that vary, though…
Product Liability definitions of what is even ‘covered’ by a cannabis insurance policy range widely between insurance companies. Now, a tidal wave of novel cannabinoid products threatens to upend the traditional American perception of cannabis – and possibly teach a few lackadaisical insurers an expensive lesson.
So, let’s delve into the issues associated with product liability and novel cannabinoids in the American cannabis industry…
American cannabis companies face a daunting task when it comes to navigating the complex and constantly evolving landscape of regulations governing the production, distribution, and sale of cannabis products. With 40 sets of rules governing different state markets, plus a handful of federally licensed businesses, ensuring compliance can seem like an insurmountable challenge.
One of the most significant issues facing cannabis companies is product liability, including the ongoing blight of product recalls. As with any consumer product, there is a risk of harm associated with the usage of cannabis products – things like adverse reactions, contamination, mislabeling, or improper dosage, to name a few. The legal and financial implications of product liability can be severe, including lawsuits, fines, and irreversible reputational damage. Given the complexity of the state-segregated cannabis supply chains and the lack of clear federal guidance, it is additionally challenging for companies to identify and mitigate potential risks.
Traditional cannabis companies must also contend with the emergence of novel cannabinoids. As researchers continue to explore the potential therapeutic benefits of cannabis, previously unknown cannabinoids are being discovered and brought into the mainstream. These compounds may have unique properties and potential therapeutic applications, but they also pose challenges in terms of safety and regulation. For example, some novel cannabinoids may be more potent or have different effects than traditional cannabinoids like THC and CBD. What’s worse, some novel cannabinoid products can even produce substances that are deleterious to human health (for example – the vaporization of THC-O Acetate produces toxic ketene gas).
The challenges associated with product liability and novel cannabinoids highlight the need for clear and consistent regulation of the cannabis and hemp industry. While some states have taken steps to create comprehensive regulatory frameworks for cannabis, the lack of federal guidance has created an incoherent patchwork of rules and regulations that can be difficult for even the most seasoned minds in compliance to navigate.
Without sensible and congruous regulations, companies may be forced to operate in a legal gray area, increasing the risk of non-compliance and potential harm to consumers. In fact, this is exactly what’s happening with the unregulated intoxicating cannabinoid market. A veritable alphabet soup of novel intoxicants like Delta-8 THC, THCP, THC-O Acetate, and others have sprung up to fill the gap in access perpetuated by the federal illegality of ‘normal’ marijuana products. Beyond that, some folks are synthesizing Delta-9 THC (the ‘normal’ THC molecule) from hemp and marketing it as if it were naturally occurring THC from marijuana.
These products are increasingly problematic for cannabis consumers. While intoxicating hemp-derived products are technically legal through a loophole in the Farm Bill, states have had to take action to ban or regulate novel cannabinoid products. The states that haven’t acted are effectively endorsing the sale of untested cannabis goods often derived from federally legal hemp. This means that novel cannabinoid products get a free pass in many areas for heavy metals, mycotoxins, pesticides, residual chemicals, and other contaminants that the regulated marijuana industry must monitor to maintain good standing with a state cannabis program.
As if varying state regulations weren’t enough, insurers’ definitions of what is considered ‘cannabis’ vary widely too. Some policy forms contemplate hemp-derived cannabinoids as ‘cannabis’ and some do not.
A few examples of policy wording are below:
Carrier A:
“Medical Marijuana means cannabis or marijuana, including constituents of cannabis, THC, and other cannabinoids, as a physician-recommended form of medicine or herbal therapy”
Carrier B:
Simple exclusion for ‘Hemp-Derived Intoxicating Cannabinoids’
Carrier C:
“Cannabis” means:
Any good or product that consists of or contains any amount of Tetrahydrocannabinol (THC) or any other cannabinoid, regardless of whether any such THC or cannabinoid is natural or synthetic.
The paragraph above includes, but is not limited to, any of the following containing such THC or cannabinoid:
(1) any plant of the genus Cannabis, or any part thereof, such as seeds, stems, flowers, stalks and roots; or
(2) any compound, byproduct, extract, derivative, mixture or combination, such as, but not limited to:
(a) Resin, oil or wax;
(b) Hash or hemp; or
(c) Infused liquid or edible marijuana;
Whether or not derived from any plant or part of any plant set forth in the paragraph above.
From the get-go, you can infer a few things from these definitions/exclusions:
Carrier A: not an adult-use cannabis company’s best choice as it only defines ‘medical marijuana.’ This could leave the door open for potentially uncovered claims from recreational products.
Carrier B: insurance company is looking to protect itself from issues with the new wave of novel cannabinoid products – but specifically, only the dozen or so intoxicating cannabinoids that can legally be synthesized from hemp (without testing mandates in most states). An important takeaway is that this definition would cover non-intoxicating cannabinoids like CBN or CBC, even if they were derived from hemp.
Carrier C: this language is/was commonly used across a number of insurance carriers who cover cannabis. Their policies may carry some restrictions, but this broad definition of cannabis includes synthetic cannabinoids and could expose the carrier to major lawsuits.
Those with broader definitions that include all cannabis-derived products often restrict their product liability coverage in other ways. All things considered, the industry has a long way to go until the available product liability coverage can truly be called comprehensive.
To address these challenges, policymakers, industry leaders, and consumers must work together to create a regulatory framework that protects public health and safety while supporting the growth of the cannabis industry. This should include clear guidelines for product labeling, testing, and dosing to ensure that consumers have access to safe and accurately labeled cannabis products. It should also include provisions for product recalls and liability to protect consumers in the event of unexpected quality control issues.
Additionally, the framework should support ongoing research into the therapeutic potential of cannabis, including novel cannabinoids. This research should be conducted in a manner that ensures the safety and efficacy of new compounds before they are introduced to the market. By creating a robust regulatory framework that balances innovation with consumer protection, we can ensure that the cannabis industry continues to grow and evolve in a responsible and sustainable manner.
As risk professionals in this field, it’s our duty to convey the urgency of these issues and the need for action. By working together to create a regulatory framework that supports both innovation and consumer protection, we can ensure that the cannabis industry continues to thrive while safeguarding public health and safety.
It’s time for policymakers, industry leaders, and consumers to come together to address these critical challenges and build a sustainable future for the American cannabis marketplace that is inclusive of all the various products that can be developed from cannabis.
Matt Johnson leads the Risk Services division for QuadScore, the nation’s leading cannabis insurer. Matt works to keep the cannabis industry safe from unexpected losses through all manner of risk mitigation techniques, ranging from facility security assessments to fire protection improvements.
Matt has the unique ability to study the claims activity for hundreds of cannabis operators across virtually every active state in the USA. Through this lens, he can offer unique insights into the most common claims and how to prevent them.
In addition to learning from past mistakes, Matt also keeps an eye on future claims drivers from emerging areas such as hemp-derived novel cannabinoids. Before starting with QuadScore, Matt spent a number of years working for a Berkshire Hathaway insurance company.
Doug Esposito has been a Property & Casualty Specialist with AssuredPartners and leads the firm’s Renewable Energy and Cannabis Practice with specific expertise in these industries. Doug’s current cannabis & hemp practice clients include indoor/outdoor cultivators, manufacturers, distribution companies, dispensaries, non-storefront delivery, labs and property owners, so he knows what challenges are facing the growing industry and is skilled at providing solutions. Doug is also one of AssuredPartner’s experts in alternative risk mechanisms including self-insured and captives programs.
Doug currently serves as the Co-Chair of the California Cannabis Industry Associations’ (CCIA) Risk Management committee and serves on the National Cannabis Industry Associations’ (NCIA) Risk Management & Insurance Committee. He understands the importance and need to educate the insurance carriers and the public on the benefits of cannabis and hemp both medicinally and economically. “I truly respect the spirit of the industry’s medicinal origins and I’m committed to helping build this industry to reach new levels of growth, success, safety and acceptance,” shared Doug.
Committee Insights: Meet the Minors (Novel, Minor, Synthetic Cannabinoids – Part II)
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. The NCIA Committee Insights series showcases content produced in partnership with one of our 15 member-led committees.
Our multi-part series on Novel, Minor, and Synthetic Cannabinoids continues! Join members of NCIA’s Cannabis Manufacturing, Scientific Advisory and Hemp Committees for an in-depth discussion of the most talked about minor, novel, and synthetic cannabinoids.
What scientific publications exist for each compound? What do we know about each molecule’s physiological, psychoactive, and therapeutic effects?
You’ll find out LIVE from leading chemical experts, manufacturers and product development specialists as they explore these compounds from various perspectives to examine their implications for consumers, medical practitioners, patients, producers and regulators.
Learning Objectives
• Molecular Structures and Identification of novel, minor, and synthetic compounds
• Published Physiological and Psychoactive effects of these compounds
• Perceived therapeutic effects
• Opportunity to ask about other new compounds not in presentation.
Panelists
Cassin Coleman
Founder
Cassin Consulting
James Granger
Chief Political Officer
Clintel Capital Group
John Murray
President
Sustainable Innovations
Scott Seeley
Patent Attorney & Intellectual Property Lawyer
Eastgate IP
Catalyst Conversations | 2.21.23 | Gain an Edge and Make an Impact – Community Benefit Agreements
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.
NCIA’s Catalyst Conversations series is an advanced webinar series curated to give enrollees in our Social Equity Scholarship program the opportunity to network and gain access to valuable knowledge that will help them excel in the cannabis industry.
In this edition of our Catalyst Conversations series originally aired on Tuesday, February 21, we hosted a dynamic and practical conversation with members of NCIA’s Retail Committee, alongside cannabis industry leaders based in Chicago – Doug and Gary – surrounding the importance of businesses collaborating with community members, and how to create mutually beneficial partnerships between communities & businesses through community benefit agreements.
Going through the licensing or permitting process? Trying to figure out how to launch your business model in a municipality that isn’t set up for it yet? Are you operating already, and looking for insights as to how to keep your license or strengthen your business model?
You’re in luck as you’ll leave this conversation with a better understanding of what Community Benefit Agreements (CBA) are, and how they are a necessary component of the licensing and license retention process.
On top of gaining insights into how to develop a CBA that works for your business’ bottom line while also creating community impact you’ll also learn about existing CBA’s and the success we’ve already seen in these early stages.
Panelists:
Mike Lomuto
Diversity, Equity, and Inclusion Manager
NCIA
Managing finances and complying with complex regulations in the highly regulated cannabis market can be challenging for business owners. For this reason, it’s crucial to have a competent cannabis accountant. In this article, we will discuss four major reasons why a good accountant is essential in the cannabis market, grouped into distinct categories.
Mitigate the risk
Having specialized professionals, such as a cannabis accountant, can bring a wealth of knowledge and expertise to your business. They understand the unique challenges and regulations associated with the cannabis industry and can provide guidance and support to help you make informed decisions and navigate potential risks. By leveraging their expertise, you can ensure the success and stability of your business in this rapidly evolving industry.
Accountant who has experience working in volatile and new industries is well-equipped to handle the risks that come with operating in such environments. By regularly identifying and measuring these risks, the accountant can help mitigate them and ensure the stability and success of a business.
At the early stages of starting a business, it’s critical to bring on board a competent cannabis accountant and attorney. Don’t let the simplicity of creating an entity mislead you into missing out on getting proper counsel on the appropriate entity type. Stay attentive to accounting and legal concerns and make informed decisions. If the chosen entity type does not align with your business goals, a knowledgeable cannabis accountant will discuss the potential consequences of each option. This will enable you to make an informed decision.
Given the ongoing discourse surrounding entity type and its status as a commonly asked question, I deemed it worthwhile to introduce this information. It should be noted that a Limited Liability Company (LLC) is not officially classified as a tax entity by the IRS. The taxation of an LLC can vary and may be classified as a single-member LLC, a corporation, or a partnership.
One of the biggest risks in the cannabis industry is the risk of failure and the accumulation of a large tax debt. The cannabis industry is heavily regulated and taxed, which can present significant financial challenges for businesses operating in this field. In order to mitigate this risk, it is important for cannabis businesses to have a strong understanding of the tax laws and regulations applicable to their operations, and to have a robust system in place for tracking and reporting their financial transactions. Working with a knowledgeable and experienced cannabis accountant can help ensure that tax laws are applied correctly and that businesses stay in compliance with the regulations, reducing the risk of financial failure and tax debt. The establishment and enhancement of robust internal controls, coupled with diligent monitoring, can also significantly contribute to mitigating potential risks as well.
It is noteworthy that individuals who own cannabis businesses are known for taking risks. As a result, it is essential to have accountants and attorneys who are skilled in evaluating and reducing these risks. Selecting your advisory team carefully is of utmost importance.
Aligned Mission and vision
It is necessary for the business owner and accountant to have a clear and transparent understanding of each other’s needs and goals, in order to create a win-win situation. The highly regulated and complex cannabis market can be challenging, and having an accountant who is passionate and aligned with the business owner’s mission and vision can help smooth the business cycle and avoid conflicts. An accountant’s mission is to help their clients manage their financial resources effectively and efficiently. This involves tracking the financial performance of the business, providing advice on financial decisions, and ensuring compliance with legal and regulatory requirements. In order to carry out this mission effectively, an accountant needs to have a deep understanding of the business owner’s goals, objectives, and overall strategy.
When a cannabis accountant’s mission is aligned with a business owner’s, they can work together to achieve common goals. This alignment helps the accountant understand the business owner’s financial needs, which enables them to provide more targeted advice and recommendations. It also helps the business owner understand the importance of financial management and how it can contribute to the success of their business. It also helps the business owner feel more confident in their accountant’s advice and recommendations, which can lead to collaborative and effective working relationships and more successful outcomes.
Experience or training in the cannabis industry
The cannabis industry is new and constantly evolving, and it is important to have an accountant who is trained and up-to-date with the latest developments. Many CPA firms are now specializing in the cannabis industry, giving business owners more options to choose from. A cannabis accountant should be familiar with 280E of the Internal Revenue Code, which can be a monster in terms of tax for the industry. They should also have knowledge of cost accounting and inventory management, which are crucial for producing accurate financial statements. Cannabis accountants with a background in manufacturing industry can bring their expertise to the industry and be of even greater value.
The use of the word “trained” is intentional in highlighting the fact that the cannabis industry is new and constantly evolving. Even though accounting firms with decades of experience are doing their best, when they have a high volume of clients, they may not be able to provide timely service and may lack time for innovation and data analysis. There are many cannabis think-tank groups and programs that can give trained accountants the same advantages, or even more, as experienced ones, as technology has revolutionized all industries, including accounting.
Analytical Reporting
A knowledgeable cannabis accountant should be able to provide financial statements and analyze them to help the business understand its financial position and take actionable steps towards its goals. They should be able to simplify complex financial analysis and provide key performance indicators and ratios that can help the business stay on track. They also have the responsibility of managing cash flow, which is key for the success of any business, especially in a competitive market. Many businesses fail because they run out of cash, not profit.
An insightful analysis takes the information one step further and presents the data in context in a way that identifies the necessary actions to be taken to maintain or improve the organization’s operations. Reports that allow managers to do their jobs better and make better decisions will be highly valued.
In a competitive market, the role of accountants and CFOs becomes increasingly important.
Ultimately, conducting business is a spiritual pursuit that involves the right mindset, effective communication, and teamwork. A business will flourish and make a positive impact if it brings together a team with a strong cultural alignment and a growth mindset.
We have great respect for those who work in the cannabis industry, as they often put their lives or licenses on the line. Let us strive for greater compliance and work towards creating a better world for all.
Sevana Janian is a Certified Public Accountant in California with more than 17 years of experience in tax and accounting. She is a member of the Cultivation Committee of the National Cannabis Industry Association (NCIA) for the year 2023. She is also a member of AICPA and CalCPA organizations. Sevana enjoys traveling with her family and playing the piano during her leisure time. She is committed to networking with others to expand her personal and professional knowledge. Sevana is passionate about inspiring and motivating the younger generation to succeed.
Green Plus CPA aims to offer a world-class automated tax and accounting solution nationwide for CEOs and business owners in the cannabis industry who seek accurate financial statements. Established in 2022, we are deeply interested in the medicinal properties of the cannabis plant and firmly believe in its potential to heal. We are enthusiastic about supporting and serving this industry that has been overlooked.
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.
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
Defining the Conversation: Minor, Novel & Synthetic Cannabinoids
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.
NCIA’s Cannabis Manufacturing Committee, Scientific Advisory Committee and Hemp Committee are all collaborating on a series of #IndustryEssentials webinars over the next few months which will 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.
To kick off this series we’re showcasing an initial session taking place on Wednesday, December, 14th at 3PM ET / 12PM PT introducing and framing 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 they’ll be hosting a moderated Q&A session so don’t miss your chance to participate in this interactive educational experience with leading manufacturing, biochemical, and legal professionals from the hemp and cannabis industries.
15-minute Introductory Session
But before we get started … Acquire the foundational knowledge needed to dive deep into this session by watching this introductory video on Minor, Novel and Synthetic Cannabinoids.
During this brief 15-minute presentation our panelists Scott Seeley of Eastgate IP and James Granger of Clear Cannabis Inc, both members of NCIA’s Cannabis Manufacturing Committee, will walk you through the categories of compounds, outside of the commonly known big two – THC and CBD, and explain what is known about these compounds along with what the industry can do to move forward to provide safe products to consumers.
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
02:13 – Equity vs. Debt: With equity dried up, should cannabis companies be looking at debt financing to grow now?
07:28 – Equity vs. Debt: What do borrowers need to do before approaching a debt provider (vs. an equity provider)?
13:25 – Equity 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?
26:07 – Audience 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?”
28:56 – Lending: What significant lending challenges are your clients currently facing within the industry?
33:56 – Lending: 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?
39:05 – Cannabis Reform: What impact do you expect President Biden’s recent announcement will have on the industry?
49:32 – Audience Q&A: “Are your financial institutions planning to offer lending and banking services in New York, New Jersey and other new markets?”
51:42 – Audience 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?”
55:19 – Audience Q&A: “How can I start to shift my retail company from being primarily a cash-only business?”
1:05:03 – NCIA Member Appreciation Credit Sequence
Sponsored By:
Committee Insights | 9.28.22 | Cannabis Ballot Initiatives in the November 2022 Election
In this edition of our NCIA Committee Insights series originally aired on Wednesday, September 28, 2022 members of NCIA’s State Regulations Committee convened a panel of government affairs, business development and licensing experts for an in-depth discussion focusing on cannabis ballot initiatives up for a vote this coming November.
They provided a detailed overview on the status of each campaign so that you’ll learn how best to position yourself for success and what you can do to help push these efforts across the finish line. If you’re considering business Arkansas, Maryland, Missouri either of the Dakotas then this session is specifically geared for you.
At the conclusion of the discussion they hosted a moderated Q&A session to provide NCIA members an opportunity to interact with leading minds from the cannabis regulatory and licensing space, join today to contribute to future conversations!
Learning Objectives:
• Provide practical information to NCIA members about the cannabis ballot initiatives and potential new business opportunities.
Sumer Thomas
Director of Regulatory Operations
Canna Advisor
Nicola Batten
CEO & Founder
koLaB Consulting
Larry Luksha
Government Relations & Business Development
Veritec Solutions
Joseph Smith
Senior Managing Associate
Thompson Hine LLP
Service Solutions | 9.21.22 | Does Your Video Surveillance Monitoring Method Put Your Business at Risk?
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, September 21, 2022 we were joined by the experts from Netwatch North America and Sapphire Risk Advisory Group to discuss the stark differences between the most common methods businesses choose for video monitoring to clear up the confusion about the best method for your type of business.
Every business needs a video surveillance system to guarantee the security of its premises and improve business operations. As a high-risk industry, cannabis businesses have an even greater need for these systems. Cultivation facilities, processing labs, and dispensaries are high-value targets for potential criminals due to the large amounts of currency and cannabis products stored on-site.
In addition, these systems are necessary to remain compliant with local or state law. However, while regulations require cannabis businesses to equip their facilities with a functioning video surveillance system, regulations can be less restrictive about how these systems are monitored. Yet, the method of video monitoring chosen can determine how effective the business can be at reducing and preventing criminal activity.
You’ll leave the program with a roadmap for next steps to take to evaluate the methods currently in place, how best to conduct an assessment and implement new systems to ensure the security of your business AND the safety of your employees.
In this session, you will learn:
• What are the most common video monitoring methods for cannabis businesses?
• How does each method monitor, detect unauthorized activity, and comply with canna regulations?
• What is the best option for your type of business?
41:30 – Audience Q&A (When should I reach out to a PVM company during the cannabis business planning process?)
43:29 – Audience Q&A (What VMS systems does Netwatch currently integrate with?)
44:45 – Audience Q&A (Do insurance companies reward operators for proactive video? Is activity reporting for proactive surveillance a regulatory requirement in MA or other jurisdictions?)
46:42 – Audience Q&A (How does working with a security company like Sapphire help to save my company money?)
48:26 – Audience Q&A (How important and common are camera analytics in the industry?)
52:09 – Audience Q&A (Should I choose the security integrator/manufacturer to work with first or my video monitoring method?)
54:39 – Audience Q&A (How do you get in touch with a risk consultant?)
55:50 – Final Thoughts & Upcoming Events w/ Netwatch & Sapphire Risk Advisory Group
by Matthew Johnson and Doug Esposito
Matt Johnson leads the Risk Services division for 
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Sevana Janian is a Certified Public Accountant in California with more than 17 years of experience in tax and accounting. She is a member of the Cultivation Committee of the National Cannabis Industry Association (NCIA) for the year 2023. She is also a member of AICPA and CalCPA organizations. Sevana enjoys traveling with her family and playing the piano during her leisure time. She is committed to networking with others to expand her personal and professional knowledge. Sevana is passionate about inspiring and motivating the younger generation to succeed.
