Recently, the Fourth Corner Credit Union has made headlines by promising to be the first of its kind institution to serve the cannabis industry exclusively and provide the very types of banking services businesses sorely need. We here at the Cannabis Business Summit recently caught up with Colorado’s Director of Marijuana Coordination and Cannabis Business Summit panelist to get his take on the recent developments.
There are many challenges confronting the cannabis industry -- lack of banking access, unfair taxation, burdensome regulations -- but one issue that isn't getting talked about is the threat litigation poses to marijuana businesses big and small. At a recent panel titled “Preparing for the Regulatory Future of Infused Products in America,” Hilary Bricken, an attorney with the Canna Law Group, detailed what she sees as an emerging issue for which all businesses need to prepare.
In the wake of the November elections, the cannabis industry is taking stock of legalization and regulatory efforts across the U.S. There is hope of more ballot success in 2016, and in Arizona, the state legislature has found that legal marijuana could lead to as much as $48 million in new tax revenue. But there’s also the reality of a fractured regulatory landscape, as a cannabis-focused credit union in Colorado considers a potential workaround for a federal insurance mandate, and a marijuana information service seeks to market itself without relying on forbidden paid ads.
Marijuana-related businesses face myriad financial concerns due to discrepancies between state and federal laws. They are cash-based businesses because most banks won’t accept their money. They aren’t allowed to deduct common overhead expenses on taxes, and even attorneys and accountants are reluctant to give advice to these businesses for fear of reprisal themselves. The IRS is taking steps to change some of this. Just last week, an IRS committee recommended that lawyers and accountants not be punished or targeted for helping cannabis-based businesses. Other legislation in progress may allow tax deductions of expenses. Read on to learn more.
Officials from the Colorado Department of Health and Environment made waves on Monday after suggesting a ban on all edible products except for tinctures and hard candy. CDPHE’s proposal was quickly met with pushback from industry representatives and regulators alike.
An attorney and the Director of Compliance at Vicente Sederberg, Jordan Wellington helps his clients navigate the complex and ever-changing web of cannabis regulation. In this video, Wellington dishes out practical advise for anyone considering jumping into the cannabis industry. Learn more about Jordan Wellington and sign up to hear him speak at the Infused Products Symposium on October 27-29 in Denver by visiting http://cannabisbusinesssummit.com/infused
After consecutive months of adult-use sales lagging behind medical sales, lawmakers in Colorado have become publicly concerned that Colorado’s medical program, and its lower tax rate, is drawing away customers that might otherwise enter the adult-use market. But that trend may be over. For the second month in a row, adult-use cannabis sales have exceeded medical sales and the trend only seems to be growing. This infographic visualized the key facts and figures from the latest report.
The big news coming out of the cannabis industry this week is the rise of single-serving edibles and infused products aimed at new marijuana users, many of whom choose edibles over more traditional methods like smoking. A national Associated Press story highlighted the “Rookie Cookie” from The Growing Kitchen as well as the new Dixie One Watermelon Cream soda from Dixie Elixirs. Each of these products boasts a modest 10mg and 5mg dose respectively and are marketed at new customers who are interested in trying edibles but who may lack the experience to properly dose the product themselves.
Earlier this week, police mistakenly raided a Georgia man's garden mistaking his okra plants for cannabis.
Police flying in helicopters looking for marijuana plants last week tracked down a man who they believed was illegally growing cannabis. Yet they soon discovered the plants were actually okra, a gumbo ingredient that’s very much legal.
In the cannabis world, responsible marketing is more than the right thing to do -- it's also essential to the success of the industry. It's difficult to think of an emerging business sector that’s as vulnerable to swings in public opinion as cannabis. Given that, the ways in which cannabis businesses market themselves to the public is as much about building momentum for a movement as it is about finding new customers. To illustrate that point, the graph below shows two lines that measure the percentage of people who think marijuana should be illegal and people who think marijuana should be legal over time. The good news is those lines have crossed and there are now more people who believe marijuana should be legal.
Understanding food safety code can be daunting even with a law degree and a magnifying glass for the fine print. So how can cannabis businesses expect to become compliant without spending hours pouring over hundreds of pages of regulations? The answer is to enroll in a food safety certification course that’s designed specifically for your industry. For Maureen McNamara of Cannabis Trainers, it’s all about creating an interactive environment where people feel comfortable asking questions and getting the information they need to make infused products safely -- not a tiresome lecture and a test.
While efforts are underway to give legitimate cannabis businesses access to banking, many are simply denied essential banking services and have to deal exclusively in cash. This can make it very difficult for small business owners to handle typically routine tasks like tracking inventory, paying suppliers, and managing payroll. A cash-only system is also a public safety issue because it forces businesses to hold and transport large sums of cash, making them a target for crime. As Colorado State Representative Crisanta Duran notes,
Of the many buzz words and lingo one hears in the cannabis world, “legitimacy” is bound to pop up. How can businesses become more legitimate? How can we change the perceptions of consumers, regulators and the public at large? An often overlooked piece to that puzzle is the role science has played in not only raising the quality and consistency of products offered on the consumer market, but also easing human suffering in medical patients.
Training has been Maureen McNamara's gig for over 20 years. Having cut her teeth in the rough and tumble hospitality world, Maureen realized her 20+ years of experience were well-suited to serve the burgeoning cannabis industry. In partnership with the National Cannabis Industry Association, Maureen now offers a certification course in food safety for edible manufacturers as well as a responsible vendor program for budtenders, owners, and managers to teach them to sell safely, knowledgeably, and responsibly.
Andrew Freedman is Colorado’s Director of Marijuana Coordination, which he jokes is a job title that stirs envy amongst his law school friends, even if it came with a healthy pay cut. In his panel “Colorado & Washington: Successes and Challenges from the Frontier of Post-Prohibition America,” Freedman tackles three of the hottest and often controversial issues facing the industry: banking, edibles, and the Governor’s youth prevention campaign.
The legal cannabis market is less than eight months old, but a new state report is providing us with some hard data about the size and scope of consumer demand in Colorado. While the study draws on a limited range of data (3 months), the report still provides a never before seen view of the data behind legal cannabis sales. Explore the highlights of this report in this info graphic:
