Earlier this year, Cannabis NewsHub reached out to successful female leaders in the cannabis community. We asked them to share insights and advice for aspiring industry professionals.

Overwhelming Success of the Social Media Campaign

Participation in this social media campaign was an overwhelming success, with more than 50 women in cannabis leadership sharing their “words of advice,” all of which were posted and shared through social media channels. See all posts on the Cannabis NewsHub website here.

Celebrating Diversity in Cannabis Leadership

The diversity of organizations was an affirmation that these women are truly “Thought Leaders” who represent cannabis in the following verticals: Advertising, Associations, Conference Development, Delivery Platforms, Dispensaries, Growers, Human Resources, Educators, Legal, Manufacturing, Marketing, Publishers, Software, and Tourism. This cross-section of verticals within the cannabis space validates the diversity of women and their roles in the industry. Their powerful advice serves as an education on how to succeed and find your path in this dynamic, ever-changing industry.

Shout-Out to Participating NCIA Members

We are proud to highlight some of the NCIA members who participated in the “Cannabis NewsHub – 2024 INSIGHTS Matter: Women in Cannabis Weigh In” campaign. These leaders are making significant contributions to the cannabis industry:

Thanks to all who participated, as well as to our friends and partners who helped to promote this campaign: BudsFeed, National Cannabis Industry Association (NCIA), the Cannabis Bar Association (INCBA), and the Association of International Certified Public Accountants (AICPA), who helped us find some of these amazing women.

For more information on Cannabis NewsHub or to be a part of our summer series, “INSIGHTS Matter: 280E”, please contact Nicole Montenegro, Marketing Manager, at nmontenegro@newsbank.com.

Unlock Exclusive Savings with NCIA Membership

As a valued member of the National Cannabis Industry Association (NCIA), you can enjoy exclusive discounts on various industry services, including special offers from Cannabis NewsHub. This member benefit is designed to help you save while staying informed and connected in the cannabis industry.

Click here to learn more about the Cannabis NewsHub NCIA Member Special Offer.

Join NCIA Today to Access Member-Exclusive Benefits

Not yet a member? Now is the perfect time to join NCIA and unlock these incredible savings! As an NCIA member, you’ll gain access to a wide range of benefits, including:

• Discounts on industry services and products
• Networking opportunities with industry leaders and peers
• Educational resources to keep you updated on industry trends and best practices
• Advocacy support to help shape the future of the cannabis industry

Join NCIA today and take advantage of these member-exclusive discounts and many other benefits. Become a member now and start saving!

Published on behalf of NCIA’s State Regulations Committee (SRC)

As the cannabis industry continues to evolve, so do the discussions around regulations, particularly concerning flavor additives in inhalable cannabis products. This blog post represents the members of NCIA’s State Regulations Committee current reflections on the successes and shortcomings of existing cannabis vape regulations, focusing on flavor limitations, safety considerations, quality specifications, and labeling practices. While technical, this topic has a tremendous impact on cannabis brands and consumer safety. 

First, for those who might question the need to add flavors to cannabis vapes, it’s essential to highlight the following points regarding why flavors are added and the benefits they bring: 

Restoration

In some cases, such as with cannabis distillates, processing or manufacturing techniques can alter or remove natural cannabis flavors from vape liquids. Adding cannabis flavors back simply returns the final product back to nature’s intended taste profile, providing consumers with a comprehensive vaping experience.

Mimicking Smoking Sensation

For individuals transitioning from traditional smoking to vaping, flavors can mimic the sensations and tastes they are accustomed to, making the switch more enjoyable and satisfying.

Customizing Preferences

Consumers have diverse preferences, and adding flavors allows them to customize their vaping experience based on their personal taste preferences, whether they prefer fruity profiles or classic cannabis flavors. Akin to aromatherapy, consumers may also predict the mood impression they will experience by vaping a particular flavor. 

Providing Consistency

Consumers often expect certain flavors in products based on their product familiarity so it is important for brands to be able to deliver a consistent vaping experience wherever their product is sold despite changes that the consumer may otherwise notice due to harvesting variability of the cannabis or limitations on strain availability across borders.  

Meeting Market Demands

The vape industry is driven by consumer demand for a wide variety of flavors. Adding flavors allows vape manufacturers to meet market demands and cater to the preferences of different consumer segments. In regions where certain flavors are restricted or banned due to regulation, the legal vape industry is challenged to compete with the illicit market, where flavors would continue to be available. However, these illicit market alternatives may not undergo the same safety and quality standards as legal vape products, potentially posing risks to consumers’ health. By offering a wide range of flavors, the legal vape industry can provide consumers with safer alternatives and help combat the proliferation of potentially unsafe, unregulated products.

Personal taste aside, the dangers of unsafe flavors in unregulated products are real, as was demonstrated in 2019 through cases of EVALI (E-cigarette or Vaping Associated Lung Injury). As detailed in this piece, manufacturers need to follow best practices to protect vaping consumers no matter if they are in regulated cannabis, unregulated cannabis, or the CBD/hemp markets. 

Overall, the addition of flavors to cannabis vapes is not just about enhancing taste but also about meeting consumer expectations and improving consumer safety. Flavors create consistency in products and are common across consumer products we already enjoy daily. Consumers are trained to expect flavor variety and consistency in traditional e-cigarettes, and cannabis vapes should be no different. 

What’s Working?

We commend states like Oregon for taking a pragmatic approach by allowing a broad range of natural, artificial, and cannabis-specific flavoring ingredients while rightly prohibiting scientifically known inhalation hazards. This approach provides broad room for innovation while protecting the public from valid safety risks.

What’s Not Working?

Conversely, restrictions on flavor ingredients to only natural sources, as seen in states like Nevada, California, and New York, are unnecessarily limiting and not scientifically justified. Further limiting flavoring terpenes to being cannabis or hemp-derived, like in Connecticut, also hinders creativity, imposes higher costs, and potentially pushes consumers towards unregulated alternatives. Likewise, enforcement actions to prevent adolescent access to vapes should be prioritized over regulations to limit flavors or labels thought to be more appealing to adolescents. 

Everyone’s goal should be to provide consumers with the safest possible experience when using inhalable products containing flavors. What’s safe to eat isn’t always safe to inhale.

What’s Working?

Responsible suppliers implementing robust quality and regulatory pre-qualification measures for all flavor ingredients is a positive step. Vendors should be vetted, approved, and responsible for the products they supply. Encouraging manufacturers to develop comprehensive toxicological programs tailored for inhalation safety is also crucial.

What’s Not Working?

Requiring flavors or flavor ingredients to be listed on the pharmaceutical FDA IID for inhalation is inappropriate and does not guarantee a safer flavor. The only reason flavors or flavor ingredients may be in the FDA IID is because they already exist in pharmaceutical products that went through a safety review process. However, the flavors themselves haven’t been evaluated independently for inhalation safety (emphasis added). 

Instead of mandating a specific database of flavors, it’s more appropriate to regulate the process of sourcing and validating ingredients. 

Once a desirable and suitable flavor has been identified,  manufacturers need to understand how to maintain quality. 

What’s Working?

Adhering to the approach of FDA’s Food Safety Modernization Act (FSMA) for quality plans is best practice, ensuring hazards are identified and controlled by qualified individuals at each manufacturing stage. 

What’s Not Working?

Overly broad testing requirements for non-cannabis-derived flavors or multi-ingredient cannabis products are redundant and economically unviable, particularly when hazards are effectively controlled through quality plans at earlier or later stages of a supply chain.

Finally, it’s important to examine how manufacturers should disclose when flavoring has been added to products. Consumers have a right to understand if a product is flavored. 

What’s Working?

Simple, consumer-friendly labeling, such as using common terms like “Natural and Artificial Flavors,” aligns with other industry standards and will be recognized by the common consumer.  Adopting labels familiar to the conventional Consumer Packaged Goods (CPG) industry effectively bridges the gap between industries and aligns with how consumers already make these decisions across all products they buy.

What’s Not Working?

Listing the chemical names of all flavoring ingredients, as mandated in Oregon, New York and Missouri, is excessive and may confuse or intimidate consumers. Consumers are not qualified to assess risk from formula information. Unregulated products that do not list flavor ingredients may become more appealing to some consumers that are intimidated by the chemical names on the flavor label of the licensed product. 

Having reasonable and consistent regulations across the country will help to create a safe and level playing field for manufacturers and brands to compete for consumer market share. While nuanced, these regulations materially impact the ability to bring a product to market or make a product economically viable. 

Starting with flexible flavor definitions allows for a wide range of internationally recognized flavor ingredients, including natural, artificial, and cannabis-inspired isolates.

Banning known risks is common sense best practice. This process must be dynamic and listen to science. For example, Diacetyl, once a popular popcorn flavoring, was banned after research concluded it was unsafe for inhalation. A known, published inhalation hazard list is critical. 

Implementing a safety certification policy based on thorough toxicological risk assessments specific to inhalation exposure ensures accountability. 

Finally, adopting simple and recognizable labeling terms like “Natural and Artificial Flavors” and aligning allergen disclosures with established FDA and EU regulations make sense and protect intellectual property. We are advocating for consistency. 

These effective regulations prioritize safety without stifling innovation or burdening stakeholders. We welcome ongoing dialogue and collaboration to develop pragmatic, science-based regulations that benefit consumers and the industry.

[embedded content]

In the second episode of NCIA’s new multi-part #IndustryEssentials webinar series, titled “Advancing Cannabis Science: Research Opportunities and Safety Post-Rescheduling,” we delved into the significant changes and opportunities that would emerge following the rescheduling of cannabis to a Schedule III drug. Led by the Scientific Advisory Committee, this session provided a comprehensive overview of the cannabis rescheduling impact on research and safety in the evolving cannabis landscape.

Let’s Get This Show on the Road!

The session kicked off with a warm welcome from our host Brian Gilbert, NCIA’s Director of Engagement & Experience, who introduced the esteemed panelists, including moderator Cassin Coleman of Cassin Consulting, Dr. Cynthia Shelby-Lane, MD alongside Carly Bader, Manager of Science at Willow Industries, and Kenya Alexander of Green to Green Solutions. Each panelist brought a wealth of experience and knowledge in cannabis science, setting the stage for a deep dive into the implications of cannabis rescheduling.

The discussion began with an overview of the Controlled Substances Act and the historical context of cannabis scheduling. The panelists highlighted the journey from Schedule I to Schedule III, emphasizing the critical changes that come with this shift, particularly in terms of research opportunities and regulatory frameworks.

Cassin Coleman provided an in-depth explanation of the rescheduling process, focusing on the 8-factor analysis used to determine the appropriate schedule for a substance. This analysis includes factors such as the drug’s potential for abuse, scientific evidence of its pharmacological effects, and the current scientific knowledge regarding the substance.

The panelists explored the new landscape for researchers, discussing the relaxation of stringent requirements that previously hampered cannabis research. They highlighted the potential for increased federal funding, the ability to conduct more comprehensive studies, and the removal of barriers that have long impeded scientific progress in the field.

The conversation shifted to the practical implications for researchers and industry professionals. The panelists shared insights on how to prepare for the new opportunities afforded by rescheduling, including advice on setting up compliant research protocols and leveraging the new regulatory environment to advance scientific inquiry and innovation.

Kenya Alexander and Dr. Cynthia Shelby-Lane emphasized the importance of ensuring diverse representation in cannabis research. She discussed strategies to include underrepresented communities in studies and the critical need for research that addresses the unique needs and experiences of these populations. This part of the discussion further underscored the cannabis rescheduling impact on research and safety.

The panel addressed the broader social implications of cannabis rescheduling, particularly the need to heal the damage caused by the War on Drugs. They discussed the importance of bridging the communication gap between researchers and communities and ensuring that the benefits of cannabis research are equitably distributed.

Audience Q&A

The session included a robust Q&A segment, where the panelists answered a wide range of questions from the audience:

In their closing remarks, the panelists reiterated the importance of embracing the new opportunities presented by cannabis rescheduling. They encouraged researchers, product developers, and industry stakeholders to stay informed and proactive in adapting to these changes.

The session concluded with a heartfelt thanks to all participants and a reminder of the value of NCIA membership. By supporting the organization, members help drive critical reforms and advancements in the cannabis industry, ensuring a brighter future for all stakeholders.

This episode of NCIA’s #IndustryEssentials webinar series provided essential insights into the evolving landscape cannabis rescheduling impact on research and safety. As we navigate these changes, NCIA remains committed to supporting our members and advocating for a more inclusive, equitable, and scientifically advanced industry. Stay tuned for future episodes and continue to engage with our expert-led discussions.

Join us for Episode III, “Committee Insights: Taking the Long View – Strategic Facility Design Considerations for the Schedule III Era,” on Tuesday, June 18th at 3PM ET / 12PM PT. Experts from NCIA’s Facilities Design Committee will discuss the implications of cannabis rescheduling on facility design and operations, focusing on strategies for optimizing facility layout, equipment selection, and workflow management. Learn how to leverage tax changes and sustainability principles to enhance operational efficiency and ensure long-term viability. Don’t miss this opportunity to gain valuable insights for your cannabis business. Register now!

The cannabis industry is undergoing a remarkable transformation. Gone are the days when success was measured solely by the size of the buds. Today, innovative companies are redefining success by offering a diverse range of products, from mood-boosting gummies to pain-relieving lotions. 

Science is also at the forefront, ensuring safe and consistent experiences through rigorous research. Not to mention, dispensaries are evolving into welcoming spaces staffed with knowledgeable professionals, enhancing customer experience.

Now, this industry is no longer just about getting high; it’s about providing safe, effective choices for everyone and making a positive impact on the world.

In this article, you’ll discover the exciting trends shaping the future of cannabis. We’ll delve into how product innovation, scientific advancements, customer-centric approaches, and social responsibility are driving this industry forward. 

So, let’s dive in without any further ado!

The Rise of Cannabis-Infused Products 

Customers are no longer restricted to smoking traditional cigarettes; instead, they may choose from a range of products that provide discretion and convenience. 

Edibles that offer a safe and enjoyable method to consume cannabis, like baked products, chocolates, and gummies infused with CBD, have created new market niches. Drinks, which include coffee, tea, and even other party beverages, satisfy the needs of individuals seeking a refreshing and social substitute.

And for those looking for something new, there’s a distinctive selection CBD-based products like lotions, balms, and creams like those offered by Express Highs. These are becoming increasingly popular for their potential anti-inflammatory and pain-relieving properties, appealing especially to those seeking targeted relief without psychoactive effects.

Legalization Of Cannabis Will Keep On Growing

North America has been at the forefront of legalizing cannabis, but now Europe, Latin America, and Asia-Pacific are also showing strong interest in its medical and recreational uses. These areas are changing their rules, and more people are accepting cannabis use.

In Europe, countries like Germany, Italy, and the Netherlands already have a strong market for medical cannabis. Luxembourg is on track to be the first in Europe to allow cannabis for fun. In Latin America, Uruguay and Colombia are moving forward with progressive cannabis laws, and Mexico has recently decided to manage both medical and fun uses of cannabis. 

So, we can say that businesses that can handle complex laws and meet the needs of different customers are likely to succeed in this fast-growing global market.

The Evolution of Medical Cannabis 

Medical cannabis is increasingly recognized for its therapeutic benefits, helping treat conditions like chronic pain, epilepsy, multiple sclerosis, and anxiety. As its acceptance grows, more healthcare professionals are recommending it as a treatment option.

One significant trend is the development of cannabis-based pharmaceuticals. Companies are conducting clinical trials to produce FDA-approved medications with consistent dosages. An example is Epidiolex, a CBD-based drug for severe epilepsy, showcasing the progress in the medical cannabis sector.

Additionally, microdosing is gaining popularity, where patients consume small amounts of cannabis to receive health benefits without the high. This approach is appealing to those seeking symptom relief while maintaining daily functionality. It has spurred the creation of low-dose edibles, tinctures, and capsules designed for medical use.

Sustainable Cannabis Cultivation Practices 

As people become more aware of environmental issues, sustainable growing methods are becoming essential in the cannabis industry. Traditional methods often use a lot of energy and water, which can harm the environment. To address this problem, many cannabis growers are turning to eco-friendly practices like organic farming, using renewable energy, and recycling water.

Organic farming avoids harmful chemicals, producing cleaner and healthier plants. Growers are also using solar panels and wind turbines to reduce their use of non-renewable energy sources. Additionally, techniques like aquaponics and vertical farming are being adopted to make better use of space and resources.

More consumers prefer cannabis that is grown sustainably, leading businesses to adopt these green practices. By farming sustainably, businesses help the environment and boost their reputation and profits by attracting customers who care about the planet.

Technological Advancements in Cannabis 

Technological advancements are revolutionizing the cannabis industry, enhancing how it’s cultivated, processed, and consumed. Innovative LED lighting systems now emulate natural sunlight, optimizing plant growth with less energy. Automated watering and climate control systems provide precise environmental conditions, improving plant health and yield. Robotics are also stepping in to handle repetitive tasks like trimming, which allows for more efficient production.

In extraction technology, methods like supercritical CO2 extraction are making waves by producing purer and more potent cannabis concentrates. Additionally, the emerging field of cannabinoid biosynthesis uses microorganisms to create cannabinoids, promising a future of more sustainable and cost-effective production.

For consumers, technology has introduced advanced vaporizers and dab rigs that offer precise dosing and better absorption. Nanoemulsions are improving the effectiveness of infused edibles and drinks, ensuring a quicker onset and a smoother experience.

On the retail front, online platforms now make it easier to browse and purchase cannabis products safely and legally, with sophisticated point-of-sale systems helping businesses stay compliant with regulations.

New technologies are transforming how cannabis is grown and used, ensuring higher quality and safer products while setting new industry standards.

The Final Word

The cannabis industry is ditching the “bigger, faster” mentality and embracing a new definition of success. Quality, innovation, and social equity are now top priorities. This shift fosters sustainable practices, caters to individual needs with targeted strains, and ensures inclusive participation. 

So, why wait? Now is the time to embrace these trends and align with the new standards of success in the cannabis world.

Published by NCIA’s Education Committee (EC)

Although cannabis companies are limited in the scope of their business activities awaiting much needed descheduling, it hasn’t stopped the need for educating and preparing the cannabis workforce. For some states cannabis tax dollars are appropriated to education, violence prevention and workforce development and often developed through the lens of social equity. Ohio, Colorado, Illinois, and Michigan for example, each invest in cannabis literacy in some way. Cannabis programs such as Oaksterdam University offer learners certificates or degrees for every aspect of the supply chain. Departments shape cannabis curricula with the support of faculty members and subject matter experts from both the private and nonprofit sector. These diverse educators instruct to prepare employees to fill the expected 1.5 million to 1.75 million cannabis jobs by 2025 as estimated by the Bureau of Labor Statistics.

Partnering with academia

Legacy growers and professionals from more mature markets like California and Colorado find themselves advising academic partners on the type of information most needed by the first generation of cannabis employees. Amanda Reiman, PhD MSW serves as the Chief Knowledge Officer for New Frontier Data and instructor of Implications of Legalization of Cannabis: Policy and Compliance for Excelsior University, she believes legacy knowledge, paired with academic research, will help address the gaps in knowledge created by prohibition. “For decades, academic institutions had to stay an arm’s length from cannabis due to its legality. Now, with state laws changing, it has opened up an opportunity not only for academic institutions to offer coursework to support the emerging industry, but to learn from those who have been growing and working with cannabis prior to legalization,” Reiman says. 

Using the state laws as a baseline for cannabis literacy, programs structure certificates and degrees to prepare learners to understand the complexities of the cannabis industry. For cannabis businesses working with the academic sector is a way to keep the pulse on emerging local talent, remain aware of the effectiveness of educational approaches and in some instances, earn an income. Positioning your business in academic networks is best when it’s both mutually beneficial and ethical.

It is important to keep in mind that programs can lead to good-paying jobs for those who’ve suffered from the war on drugs and justice-impacted populations. 

Some programs are of no cost to students, while others compensate students for their participation. Certifications and degrees however don’t ensure employment. Most importantly cannabis businesses providing subject matter expertise must also continue to learn how to have a favorable impact on student populations that require learning how to serve them best. 

Teaching

When teaching cannabis student populations will vary. It is important to approach the various topics with a sensitivity to the historical injustices and disparities that have existed within the cannabis industry. Some students may have faced disproportionate barriers to entry into the industry due to systemic discrimination and lack of resources. Other students may have different experiences related to health and wellness that when discussing need to be facilitated with great diplomacy, discretion and protection of privacy.

Instructors must provide accurate and unbiased information about cannabis, but sourcing materials may be challenging. It is recommended to identify the most credible and accessible resources for courses.It is also important to acknowledge the potential for exploitation and exploitation of vulnerable communities in the cannabis industry, and to educate students on how to navigate these challenges and protect their rights.

“I came into cannabis from teaching urban ecology, urban agriculture and environmental justice concepts and I was quite familiar with learning and teaching novel concepts to diverse audiences. But what I noticed is that it was challenging for my peers. I had helped write our Illinois legislation and also had a professional cannabis network. Industry experts were invaluable for me to be successful in teaching this material and without those trusted peer mentors I doubt I would have been able to create meaningful coursework and identify high quality resources to do so,” shared Mila Marshall, PhD, NCIA Education Committee Chair.

Furthermore, it is crucial to empower social equity students to advocate for themselves and their communities within the cannabis industry. This may involve providing resources and support for networking, business development, and community engagement that are embedded in the course material and syllabi.

“Teaching is a skill above and beyond knowing the subject. For subject matter experts to be effective teachers, they should gain knowledge around differential learning styles, student engagement and effective communication,” shared Dr. Reiman. She contends that being a cannabis expert is only part of what is needed to be an effective teacher in the cannabis space. Overall, teaching cannabis with social equity students should be approached with an ethical and inclusive mindset, recognizing the unique challenges and opportunities that these students face in the industry. By promoting transparency, empowerment, and social responsibility, educators can help to foster a more equitable and just cannabis industry for all. Instructors play a key role in unlocking the potential of cannabis learners and there is a learning curve for instructors. Dr. Hemant Kumar has worked many years as a medical cannabis educator and is the Program Director of M.S. in Biotechnology and Office of Online Education and Expanded Programs at Morehouse School of Medicine. He has realized that it’s important to understand the student audiences and their level of knowledge of cannabis. He promotes remaining aware that academia is just as susceptible to the dynamic and fast paced nature of cannabis as an industry. “Scientists are globally publishing cannabis discoveries daily, shared Dr. Hemant. We see there also is a fast growing demand for business and entrepreneurial courses with potential for career pathways; manufacturing, tech start-ups, data analytics, marketing and even healthcare,” Dr.Kumar shared. 

Advisory councils

Programs benefit from the strategic advice of cannabis businesses and social equity advocates. Advisory councils are often informal in nature and independent from state regulation oversight. Council members provide insight on everything from hiring of educational professionals to establishing events and bringing in additional resources to construct greenhouses or implement hands-on internships. Commitments can vary from a single semester to an entire year or more.

Academic Advisory councils provide feedback and direction for long-term goals and strategic planning. With cannabis more in the academic spotlight than ever, it is crucial we start developing programming and educational strategies to highlight cannabis career opportunities.

As cannabis is a continually evolving industry, there are opportunities for subject matter experts to collaborate with the academic community. The cannabis industry intersects with so many different aspects of the workforce that span multiple sectors and academic degrees. Yet there are often missed opportunities for securing talent from junior colleges, trade schools, and research universities.  

Cannabis organizations’ presence at career fairs ideally should be used for visibility and awareness in the cannabis space. This allows future employees and the canna-curious an opportunity to view this industry as a legitimate career path with ample employment opportunities. It closes the communication and educational gaps and offers opportunities for subject matter experts to collaborate with the academic community.

Cannabis companies, like other industries, are part of our nation’s workforce. To normalize our booming industry, it’s important to spread awareness that the medical cannabis space is a thriving industry in need of graduates, interns, and talent from all walks of life, to help fill a myriad of different positions within the cannabis space.

Our industry is unique in that it encompasses so many different fields of study across such a vast range of subject matter.  Educating academia is crucial to paving the way for research and the normalization of this industry. We must empower and support entrepreneurs and their communities by creating an equitable and sustainable cannabis industry. By aligning with academia, we unite with community and industry leaders to achieve cannabis normalization for our communities.

Rescheduling cannabis signifies a monumental shift for our industry, specifically presenting a potential pathway to alleviate the burdens imposed by Section 280E. In a new multi-part #IndustryEssentials webinar series, led by experts from our 14 member-led Committees, NCIA will provide a comprehensive analysis of the immediate and long-term impacts on different sectors within the cannabis industry.

In our debut session, led by the Banking & Financial Services Committee, we provided invaluable insights into the transformative implications of rescheduling cannabis to a Schedule III drug and its consequent impact on Section 280E of the Internal Revenue Code. In “Schedule III & Section 280E: What Does It Mean for Me?” broadcast LIVE on Thursday, May 30th, we explored the game-changing potential of this shift, offering actionable insights for businesses navigating the evolving regulatory environment.

We were privileged to have esteemed speakers (all members of NCIA’s Banking & Financial Services Committee no less!) contributing their expertise:

• Naomi Granger, CPA, MBA: As the Founder of National Association of Cannabis Accounting and Cannabis Tax Professionals (NACAT Pros), Naomi Granger brought her extensive background in cannabis industry advocacy and leadership to the moderator role of this session. 
• Neil Rosenfield, CPA: Provided insights into the significance of comprehending and championing advocacy organizations to address regulatory hurdles.
• Steven Gotsdiner, CPA: Illuminated accounting requirements tailored to cannabis businesses, drawing attention to the nuances across various states.
• Eric Kaufman, COO: Shed light on the hurdles encountered by cannabis enterprises, while also elucidating the potential benefits stemming from regulatory changes.
• Aaron Smith, NCIA: Emphasized the pivotal role of industry participation in policy reform endeavors, highlighting NCIA’s instrumental role.

Among the topics explored during the webinar was the profound impact of rescheduling cannabis on federal legality, state and local tax obligations, and the broader regulatory landscape. With cannabis poised to transition to Schedule III, businesses are poised to embrace newfound opportunities while confronting challenges inherent in navigating this regulatory terrain.

Neil Rosenfield of BakerTilly USA underscored the significance of contributing to and championing advocacy organizations to effectively address regulatory hurdles. Aaron Smith echoed this sentiment, emphasizing the pivotal role of industry participation in policy reform endeavors, highlighting NCIA’s instrumental role in spearheading these changes.

Another focal point of discussion revolved around the ramifications of rescheduling on tax obligations and deductions governed by Section 280E. The panelists provided invaluable insights into the implications for tax planning, including adjustments to tax bills, cash flows, and essential updates to accounting records and charts of accounts.

Steven Gotsdiner of HBK CPAs illuminated accounting requirements tailored to cannabis businesses, drawing attention to the nuances across various states. Eric Kaufman, COO of FundCanna, shed light on the hurdles encountered by cannabis enterprises, while also elucidating the potential benefits stemming from regulatory changes, such as managing surplus cash flows and preparing for shifts in interstate commerce.

Eric Kaufman explored whether rescheduling cannabis to Schedule III would reduce the cost of capital for operators and recommended strategies for deploying increased cash flows to scale and grow businesses effectively.

The webinar also delved into the anticipated timeline for these regulatory shifts, offering insights into potential implementation trajectories spanning from 2023 to 2025. Strategies for navigating diverse timelines and regulatory fluxes were discussed, equipping businesses with the tools needed to adapt and flourish in an ever-evolving landscape.

Thanks to the informed engagement of our audience members, a cornerstone of what makes our webinar series so valuable for members, the discussion touched on the definition of “Good Accounting Practices” and whether this includes Generally Accepted Accounting Principles (GAAP). The panelists also speculated on the possibility of new excise taxes replacing 280E and the potential impacts on federal protections like bankruptcy and IPOs.

As the program was extended in order to answer all of our audience questions, the session concluded with insights into how these regulatory changes might affect the CBD and hemp industries. The panelists emphasized the importance of staying informed and adapting to varying state-level requirements.

As the cannabis industry continues its evolution, proactive engagement with regulatory changes remains paramount for business success. The insights shared during NCIA’s #IndustryEssentials webinar series offer a compass to navigate the labyrinth of regulatory complexities and position businesses for enduring prosperity. By fostering active engagement and advocacy, cannabis enterprises can shape a regulatory landscape conducive to industry growth and development.

To continue facilitating these crucial dialogues amongst operators, regulators, and stakeholders, NCIA relies on the support of dedicated members like you. Join NCIA today to access exclusive resources, stay informed about the latest industry developments, and be part of a community committed to driving positive change in the cannabis industry.

Supporting advocacy efforts is integral to driving meaningful change in the cannabis industry. By becoming an NCIA member, you’re not just investing in your business’s success; you’re also supporting initiatives that shape the future of the industry. Together, we can amplify our collective voice and effect tangible change.

As we conclude this recap of our insightful session on Schedule III and Section 280E, we’re thrilled to announce the next episode in NCIA’s #IndustryEssentials multi-part webinar series: “Committee Insights: Advancing Cannabis Science: Research Opportunities and Challenges Post-Rescheduling.” Led by our esteemed Scientific Advisory Committee, this episode promises to explore the exciting realm of scientific research and consumer safety in the wake of cannabis rescheduling.

Join us for an engaging discussion with industry experts, gain valuable insights, and shape the future of cannabis science and consumer safety. Register now to reserve your spot and be part of the conversation!

There were two major cannabis policy developments from Washington, D.C. last week: language of the proposed rule for rescheduling became available (accompanied by a video from the President reaffirming his commitment to reform) and the long anticipated text of the farm bill was released.

The text of the proposed rule confirmed that the Attorney General is seeking to move marijuana from Schedule I of the Controlled Substances Act (CSA) to Schedule III. Doing so would provide tax parity for the cannabis industry by ensuring legal businesses would no longer be subject to an arcane provision of the U.S. tax code — Section 280E — that prohibits deductions associated with “drug trafficking.”

The Department of Justice asked for public comment on various topics, including:

• Facts and expert opinion on different forms, formulations, and delivery methods
• Dosage and concentration information
• Data on marijuana constituents, routes of administration, and impact of Delta-9 THC potency
• Information regarding the scope, duration, and significance of marijuana abuse
• Comments on the practical consequences of rescheduling marijuana to Schedule III under the relevant statutory frameworks 
• Comments on the economic impact of the proposed rule 
• Information on how rescheduling may impact “small entities”

The public comment period is officially open and will conclude on July 22. NCIA will be submitting comments during the rulemaking period on behalf of the hundreds of small businesses we represent in the legal cannabis industry. 

In addition to this exciting announcement, the House Agriculture Committee also released the text of the overdue 2023 farm bill (the bill’s original deadline was September 30, 2023, but was extended for one year). 

Included in the bill is language regarding hemp and hemp production. The 2018 farm bill legalized hemp by authorizing the production of hemp and removing hemp and hemp seeds from the CSA. Since then, the proliferation of hemp derived products containing various cannabinoids (CBD, Delta-8, THC-A, etc) has become commonplace. The increase of intoxicating products derived from hemp has concerned many — including those in Congress. 

During the Committee markup, an amendment was offered by Rep. Mary Miller (R-IL) that would federally ban all ingestible hemp products with any level of THC. The amendment passed via voice vote.

This is an area we at NCIA are keeping a close watch. As the association that represents the entire cannabinoid industry, we are urging Congress to eschew the failed policies of prohibition and to instead move to regulate hemp and marijuana-derived products equally.

Make sure you check out our brand new position paper “Navigating the Future of Cannabinoid Regulation: Balancing Safety, Innovation, and Consumer Access”, which delves into the complexities of cannabinoid production, differentiating between plant-extracted and synthesized cannabinoids. It also addresses the challenges posed by the current regulatory landscape and advocates for a common-sense federal framework that emphasizes safety, consistency, and quality across all cannabis-derived products.

In 2012, child-resistant packaging legislation prevented access to children while the legal cannabis market began to open up but the issue persists over a decade later and the topic is still controversial to some.

“CR [Child-resistant] packaging on flower products makes no sense. On edibles sure, but flower? Not to mention that alcohol has no CR, and I’d argue is 100x more harmful to a kid who gets into it…. It feels like a piece of legislation to make regulators feel good about themselves but is a frustration to everyone else,” voiced Tyler Works on his LinkedIn page. 

Works, the Director of Account Management for Cannabiz Media, is not alone on this sentiment.  The delicate balance between protecting products and ensuring consumer safety is continuously challenged by concerns over its efficacy and common sense. 

“When we worked on these rules, this was considered but it was more important to satisfy the minds of the people terrified of kids getting into cannabis,” chimed Gus Green, who helped states adopt the Code of Federal Regulations for the Poison Prevention Packaging Act due to cannabis being a Schedule 1 drug, therefore automatically deemed harmful to children.  “Now is a better time to breach the subject. The Poison Prevention Packaging Act states that any product deemed toxic for a child under 5 years old should be in child- resistant, and senior-friendly packaging. I worked with state agencies around the country to adopt these. The rule is a bit more specific than that if you dive in though, it’s about the ability for a child to ingest a toxic amount within a specific timeframe…[For example] travel-size Listerine bottles are not always CR, but the large bottles are always CR.My specialty was child-resistant, or specialty packaging. Packaging specialists should be the ones rewriting these rules but I often see committee members with no background in the field attempting to write them.”

CFR 16 PART 1700 refers to Title 16, Part 1700 of the Code of Federal Regulations (CFR), which specifically deals with Poison Prevention Packaging. This regulation focuses on the packaging requirements for substances that are potentially hazardous or poisonous, especially to children. The key objective is to prevent accidental ingestion by children and reduce the risk of poisoning incidents.

The regulation outlines standards and specifications for packaging design and labeling to ensure that products posing a poisoning risk are packaged in a way that makes it difficult for children to open or access the contents. This includes child-resistant closures and barriers to entry. The goal is to enhance the safety of household products, medications, and other substances that could be harmful if ingested by young children. Compliance with CFR 17 PART 1700 is essential to meet safety standards and protect consumers, particularly children, from accidental poisoning.

It seems straightforward enough but there are many problems inherent in adopting a rule that was not specifically made for the cannabis industry.

The Dose Makes the Poison

Works’ earlier sentiment is essentially that “the dose makes the poison”. This fundamental concept in toxicology states that any substance can be harmful in large quantities but may be safe at lower levels. 

Proponents of this sentiment argue that cannabis flower contains THCA, which is a non-psychoactive cannabinoid, meaning it does not produce the “high” associated with THC and cannabis use. THCA is a precursor to THC through decarboxylation, which converts THCA to THC with the application of heat, typically when it is smoked, vaporized or cooked. Therefore, ingestion of THCA is unlikely to cause intoxication in a child. Moreover, Works argued that requiring child-resistant packaging for THC flower is inconsistent with the treatment of other potentially harmful household items that are not subject to the same level of regulation, such as bottles of alcohol that do not require child-resistant packaging despite their inherent availability and quantity in a household.

Advocates for the deregulation of child-resistant packaging of flower might suggest that just like for alcohol, home environment control would suffice in controlling cannabis as a safety measure for children. Storing THC flower in an inaccessible location followed by strong educational measures urging parents to responsibly store and prohibit access could be effective in preventing accidental ingestion.

While these points are presented for the sake of argument, it’s important to reiterate that child-resistant packaging regulations are designed to prioritize child safety. The potential risks associated with accidental ingestion of THC or other substances are serious, and any discussion around exemptions should carefully consider the well-being of children. Public health and safety regulations are typically enacted with the aim of preventing harm and protecting vulnerable populations. But this is not the only issue people have in mind regarding packaging. 

Child-resistant packaging for flower not only seems problematic because it is incongruent with regulations for other harmful household substances including alcohol but also because it creates trash. A lot of it.

The Single-Use Abuse

The Sustainable Cannabis Coalition estimated that in 2020, the US Cannabis Industry used almost one billion pieces of single-use plastic that mostly ended up in landfills.  Research and testing activities–including those for the cannabis industry–adds up to over 12 billion pounds per year. The majority of these plastics cannot be recycled due to their diverse material composition. A whopping 40% of total emissions are attributed to our procured goods and services.

Packaging materials, particularly plastics, are composed of various substrates such as polyethylene, each with distinct properties. Sustainability concerns arise as certain laminated plastics prove difficult to recycle. Challenges persist, especially in the context of single-dose packaging and restrictions on child-resistant reclosable plastics.

“People want to recycle bioplastics but they don’t have good barrier properties,” Gus Green states. “There is also a problem with the idea of biodegradables because they are designed to break down. Biodegradable plastic is not allowed in child-resistant reclosable plastics because the mechanism will fail because the material is frail, but laminated plastics that have great barrier properties cannot be recycled.” 

The Sustainable Cannabis Coalition blog announced that in 2021, CULTA, a cannabis company, partnered with The High 5 Initiative, a non-profit company that’s working to keep Polypropylene #5 plastics out of landfills through recycling. Patients can return packaging to CULTA, where the initiative team sorts and processes the materials, recycling over 95% and transforming #5 plastics into Post Consumer Resin (PCR) for manufacturing other products.

Despite the environmental benefits, transitioning to eco-friendly packaging faces challenges, including cost implications. For instance, CULTA notes that switching to eco-friendly cellulose packaging would increase costs, making it economically challenging for cannabis companies, coupled with perceived quality issues with thinner and more pliable cellulose bags (which may seem cheaper, thus impacting consumer acceptance).

The Future of Plastic Waste in Cannabis 

New metalized child-resistant compostable cellulose film bags have entered the market for the first time and offer the opportunity for both home and industrial composting, including the cannabis industry.

“In Canada, Wyld has adopted child-resistant compostable pouches. Many edibles brands are moving to an inner-outer pack combo with individually-wrapped pieces inside a mother bag, similar to many traditional candies.  Think caramels, Starburst, cough drops, Hershey’s Kisses, Reese’s cups, etc. – cannabis consumers want fresh products, and individual wraps accomplish that.  To avoid more single-use plastics, NatureFlex is seeing significant, promising interest,” Elisha Hedin, a regional sales manager from Futamura, manufacturer of NatureFlex explained. “Compostable films can actually have a very good barrier and NatureFlex is an ideal packaging material for both gummies and flower.  There’s a perception in the industry that compostable materials are low quality and that’s simply not true.”

Wyld, a Climate Neutral Certified brand, offers the cellulose-based packaging made from cellulose film laminated to a biosealant for their gummies. In home composting, this metalized compostable film degrades completely in 12-16 weeks. In industrial settings, it takes twice as fast to convert the cellulose into water, CO2, biomass, and mineral salts in just 6-8 weeks.

Meanwhile, in the research industry, Polycarbin has touted itself as the world’s only circular economy for single-use lab plastics. This California-based company helps labs achieve their sustainability goals by diverting these valuable materials from landfills and incinerators into the next generation of low-carbon lab products.

“Much like with food-tech and biotech, the cannabis industry is driven by a growing dependence on single-use plastics. From the harvest fields to the QC and QA laboratories, it is more important than ever that this industry consider the carbon footprint associated with its supply chain,” James O’Brien, CEO of Polycarbin emphasized. “Through responsible waste stream management and sustainable procurement, the cannabis laboratories can significantly attenuate the environmental impact of a major source of its scope three emissions—fossil fuel-derived, single-use plastics.”

As the packaging and research industry grapples with the complex interplay of material properties, sustainability challenges, and stringent safety standards, a delicate balance must be struck. Navigating the evolving landscape requires continuous innovation, collaboration, and adherence to regulations, ensuring that the packaging not only safeguards products but also contributes to a sustainable and secure future.

Navigating environmental requirements and reviews can be one of the most challenging and costly aspects of obtaining a cannabis cultivation license. Environmental standards and regulatory requirements differ from state to state and within local jurisdictions. While regulations may vary, cannabis operators encounter similar environmental requirements nationwide. Environmental reviews and impact assessments require an evaluation of cultivation policies and operations for sediment and erosion control, water usage, wastewater discharge, energy efficiency and carbon footprint, air quality, and odor control. This guide will aid operators in establishing the best practices for these environmental concerns to create a smoother environmental review process for the cultivator. 

Sediment and Erosion Control

Sediment and erosion control methods are required for outdoor cultivation to ensure the facility has a comprehensive mitigation plan to prevent adverse effects the outdoor crop may cause to the land. Sediment controls are structural measures intended to complement and enhance the implemented erosion control practices and reduce any sediment discharge. Erosion control is a soil stabilization process consisting of mitigating measures to prevent soil particles from detaching and moving into stormwater runoff. Ensuring this compliance may include implementing Best Management Practices (BMPs) for Sediment and erosion control. These BMPs should be implemented before the onset of the rainy season, typically in October. Sediment and erosion control devices and measures should be replaced when they deteriorate. 

Sediment Control BMPs

• Silt fences
• Fiber rolls
• Hydroseeding
• Sediment Trap
  • Inspect the trap on a routine schedule for litter and debris
  • Remove the sediment built up in the trap and sprinkle it lightly over vegetated areas to increase soil fertility
• Gravel bag berms
• Sandbag barriers
• Straw bale barriers
• Observation station on the property for visual monitoring of sediment pollution
• Add gravel to dirt roads
• Add stormwater detention basins

Erosion Control BMPs

• Vegetative Swales & Buffers
  • Swales should be trimmed to prevent restriction of flow
  • Routinely monitor for any debris and overflow
  • Buffers should be added to the edges of parking lots and storage areas
• Placement of straw mulch over disturbed land
  • Should be replaced often
• Soil binders
• Vegetation preservation
• Vegetation replacement for any disturbed areas that will not be in use
  • Seed mixes containing native grass and wildflowers
  • Hydroseeding
• Earth dikes

Waste Usage and Wastewater Discharge

Water usage and wastewater discharge management plans are required to ensure the cultivation facility legally and efficiently obtains its water and that no hazardous water is dumped onto the land surface, directly into the ground, or into another body of water where it could negatively impact the environment. Water usage may require obtaining documentation demonstrating you own the water rights to your facility or property. Cultivations connected to their municipalities’ water district may only need to report that information to meet this requirement. Such a facility may also need to contact its water provider to create a water rights letter showing the operator has the right to use that water. Cultivations that use other water supply methods, like wells, may need to provide a detailed report of their water quality and have well flow testing performed. Depending upon your state, you may also need to show how your water will be conserved. A cultivator may be required to create a water conservation plan detailing the procedures implemented at the cultivation site to conserve water. Wastewater discharging typically will require a cultivation site to apply for a Wastewater Discharge permit. Wastewater discharging plans that thoroughly explain how the cultivation will discharge any hazardous wastewater and what mitigating practices will be implemented to prevent wastewater from entering the environment untreated are also frequent requirements for this process.

Water Conservation Methods

• Recycling irrigation systems
• Automated irrigation systems
• Precision emitters
• Watering more frequently throughout the day in smaller amounts
• Planting pots 
• Divert the dehumidifying and cooling system’s piping into a holding tank to reuse the water for irrigation
• Use organic mulch around each plant to prevent moisture loss
• Rainwater harvesting, if allowed in your area
• Substrate sensors to monitor water saturation

Wastewater Discharge Measures

• Using planting pots to prevent excess runoff
• Vegetative swales and buffers to capture wastewater
• Recycling irrigation systems with reverse osmosis and ultrafiltration or thermal evaporation 
• Recycling systems that don’t have a filtration system can hold any hazardous wastewater in a holding tank and have it transported to an approved wastewater treatment facility
• Substrate sensors for the prevention of excess runoff
• Stormwater runoff prevention
  • Store pesticides, chemicals, and fertilizers indoors and away from any outdoor growing areas and in approved containers
  • Covering wastebins 
  • Divert stormwater away from any stockpiled materials

Energy Efficiency and Carbon Footprint 

Cultivation energy efficiency and carbon footprint reporting are becoming more popular among regulators as the country moves toward environmentally friendly practices. Energy efficiency may require the cultivation site to comply with specific requirements for equipment and lighting. Many licensing bodies also require an energy efficiency plan that details what mitigating measures the operator will implement to reduce energy costs. Carbon footprint reporting may require greenhouse gas emission (GHG) reporting, which can require a cultivator to purchase carbon offsets. Green energy plans are sometimes required; these plans demonstrate how the cultivation will utilize green energy options to reduce their carbon footprint. 

Energy Efficiency

• LED lighting 
• Automated irrigation systems
• Automated blackout curtains for greenhouses 
• On-site composting 
• Low-flow fixtures
• Split ductless air condition
• Chilled water systems for dehumidification
• Modulating hot gas reheat forced air systems
• Sensor motion lighting in rooms that aren’t frequently entered
• Adjust lighting schedules based on the weather if using mixed-light
• Installing solar panels
• Request an energy efficiency review from your utility provider 

Carbon Footprint

• Sign up with a clean energy provider that partners with your utility company and reinvests the funds from the program into clean energy initiatives in your state
• Avoid generation use wherever possible
• Install renewable energy sources at your facility, like solar panels 
• Replace pesticides with biocontrols using predatory insects
• Use recycled or biodegradable packaging, even for wholesale flower
• Cultivate companion plants that deter pests and attract beneficial insects
• Reduce or eliminate lighting requirements by establishing a greenhouse or outdoor cultivation facility

Air Quality and Odor Control 

Air quality reviews may be triggered for cultivation facilities, including the requirement to obtain an air permit. Air permits allow an operator to release a limited amount of pollution within certain restrictions. Air quality reviews for cultivations are triggered by several factors based on the state requirements, some of which may include drying, processing, generator use, fugitive emissions, and pesticide application. If a cultivator is required to obtain an air permit, they will be licensed to perform those activities. Cultivations going through air quality reviews may need to provide an Air Quality Control Plan outlining the mitigation efforts the cultivator will make for air quality pollution. Odor Control Plans are one of the most common regulatory requirements for cannabis businesses. If your environmental review includes odor control and you operate an outdoor cultivation site, you may be required to conduct an odor control study on your facility. These studies use wind patterns to measure the distance the odor from your cultivation will travel. Based on your state or local jurisdiction’s requirements, an odor control study may require you to move the border of your canopy. Conversely, an odor control study may prove that your cultivation will not be a nuisance due to odor pollution, and no mitigating measures will be required. Odor control plans should detail precisely what mitigating measures the cultivator will implement and, if available, data on how effective those measures will be. 

Air Quality Control Plans

• Wetting the surface of dirt roads during the dry season
• Encourage ride-share amongst your employees
• Reduce VOCs wherever possible 
  • This can include timing harvesting to reduce ozone impact
• Include a chemical usage plan that describes how pesticides, fertilizers, and other agents will be stored and disposed of in alliance with the manufacturer’s recommendations
  • Detail how you will maintain Safety Data Sheets (SDS) on all chemicals at the facility 

Odor Control Plans

• Indoor cultivations and greenhouses can implement the following measures:
  • Use carbon filters 
    • Explain in your plan how carbon filters work, provide data on their filtration rates, which you can locate in the manufacturer’s guide, and how often you will replace them
  • Use wet scrubbers for indoor cultivation or greenhouses
    • Explain how the air is treated when it passes through the scrubber
  • Implement biofiltration measures
    • Explain how the air will pass through soil, mulch, or other organic matter to filter the air
  • Use oxidization treatments through your facility’s ventilation system 
    • Explain how the process of oxidization removes odor 
  • Have open communication with your neighbors regarding odor 
    • Explain how you will speak with your surrounding neighbors about any odor concerns and request your neighbors contact you if they do smell odor so you can begin an assessment into structural or equipment failures and, if needed, implement further mitigating measures to your plan

• Outdoor cultivations can implement the following methods:
  • Hire a professional to do an odor study to prove your facility’s compliance
  • Plant fragrant flowers around the exterior of the site 
  • Use oxidization treatments through high-pressure misting devices around your cultivation area 
    • Explain how the process of oxidization removes odor 

• All cultivation types should have open communication with surrounding neighbors regarding odor
  • Explain how you will speak with your surrounding neighbors about any odor concerns and request your neighbors contact you if they do smell odor so you can begin an assessment into structural or equipment failures and, if needed, implement further mitigating measures to your plan

As regulatory requirements vary across the country, cultivators should carefully read their regulations and contact state and local departments for guidance on requirements specific to their operations. A thorough understanding of what plans must be created, studies performed, and special permits obtained will create a smooth environmental review process. Join the upcoming NCIA webinar from the Cannabis Cultivation Committee to dive deep with industry professionals on navigating environmental reviews across the United States.