Colorado Releases Average Market Rates for Retail Marijuana Effective January 1, 2023

The Colorado Department of Revenue (CDOR) released the Average Market Rates (AMR) for retail marijuana effective January 1, 2023 until March 31, 2023.

Three of the seven AMR categories increased this quarter, specifically trim ($253), bud allocated for extraction ($350) and seed ($9). Two of the seven rates decreased, specifically trim allocated for extraction ($61) and wet whole plant ($101). Two rates stayed the same, specifically bud ($658) and immature plant ($13).
The AMR is the median market price of each category of unprocessed retail marijuana that is sold or transferred from retail marijuana cultivation facilities to retail marijuana product manufacturing facilities or retail marijuana stores. CDOR’s Office of Research and Analysis, in coordination with the Taxation Division and the Marijuana Enforcement Division (MED), calculates AMRs quarterly for use in levying the excise tax as required by Colorado statute.

In order to estimate the AMR for each of the categories and to comply with the rate-setting requirements of §39-28.8-101(1.5), C.R.S., the Department calculated the AMRs for January 1, 2023 through March 31, 2023 based on transactions from September 1, 2022 through November 30, 2022. The transactions originated from retail marijuana cultivators and were recorded in the marijuana inventory tracking system (METRC).

The AMR dataset includes transfers that meet the following criteria: 1) transfers that originated at a retail cultivator, 2) transfers to retail stores or retail infused product manufacturers (retail MIPs), 3) transfers of unprocessed marijuana, 4) transfers between unaffiliated businesses, and 5) transfers with a receiver price greater than a penny. For each item transferred, prices per pound (for bud, trim, bud allocated for extraction, trim allocated for extraction, and wet whole plant) and prices each (for immature plants and seeds) were calculated. The AMR for each category is the median market price (per pound or each) of all included transfers in that category.

For more information, visit the Taxation Division’s website, including the methodology of the AMR calculations (including a new video) and current and prior AMRs: https://tax.colorado.gov/average-market-rate.

Recreational Cannabis Sales in New Jersey Boom

Sales receipts on recreational cannabis in New Jersey for July 2022 to September 2022 totaled $116,572,533. With medicinal cannabis sales included, the total goes up to $177,710,764, according to the New Jersey Cannabis Regulatory Commission.

There are now 20 dispensaries in New Jersey selling recreational cannabis; another 10 sell medicinal cannabis to registered patients only.

“New Jersey is only seeing the beginning of what is possible for cannabis” said Jeff Brown, executive director of the New Jersey Cannabis Regulatory Commission. “We have now awarded 36 annual licenses for recreational cannabis businesses to New Jersey entrepreneurs, including 15 for dispensaries. Those businesses alone will be a significant growth of the market.  With more locations and greater competition, we expect the customer base to grow and prices to come down.”

While there was an increase in medicinal cannabis sales, the largest increase was in recreational sales - 46% more than between April and June 2022.

“We are looking forward to seeing local, small business owners participate in this lucrative market,” said NJ-CRC Chairwoman Dianna Houenou.  “Our priority application process as well as new initiatives like the no-cost Cannabis Training Academy being launched by New Jersey Business Action Center in early 2023 are paving that path for them to be included.”

The New Jersey Cannabis Regulatory Commission establishes and enforces the rules and regulations governing the licensing, cultivation, testing, selling, and purchasing of cannabis in the state.

Veterans! SBA Has Your Backs

Join SBA and Public Private Strategies Institute on Wednesday, November 9, for webinar in part of our “Building A Better America: A Small Business Resource Community” series which will cover resources for veteran entrepreneurs. Speakers include Ray Milano, director of SBA’s Veterans Business Outreach Center Program and Dan Clare, chief communications and outreach officer at Disabled American Veterans. Additionally, this webinar will cover:

• Steps you can take now to learn and take advantage of existing programs that are available at SBA and other agencies;

• Updates regarding programs and recent policy announcements, including the Inflation Reduction Act, the Bipartisan Infrastructure Law, American Rescue Plan and Made in America;

• Discussion on important, timely policy issues, including paid leave, the earned income tax credit, the child tax credit, access to affordable childcare, hiring and retaining workers, and health care access and cost;

• Your questions answered by SBA Leadership and small business experts.

Click to register: https://publicprivatestrategies.zoom.us/webinar/register/WN_sRv7TSWiSDC5kxpcA4UnUg?utm_medium=email&utm_source=govdelivery

November: National Entrepreneurship Month

Small Business Administration, in recognition of entrepreneurs – those wide-eyed, eager, ambitious intrepid business people – and National Entrepreneurship Month, is stepping up its wide array of help to get them on their way to fulfilling their dreams.

Entrepreneurs are as American as apple pie and the backbone of the American economy. They boost economic growth by introducing innovative technologies, products, and services. Increased competition from entrepreneurs challenges existing firms to become more competitive. Entrepreneurs provide new job opportunities in the short and long term.

Entrepreneurs are important to market on Main Street USA and national economies because they can act as the wheels of the economic growth of the country. By creating new products and services, they stimulate new employment, which ultimately results in the acceleration of economic development.

The United States excels because it is strong in so many areas that matter. Entrepreneurship plays a crucial role in the US economy and as result policy initiatives are created to encourage entrepreneurial behavior. This, coupled with the culture of determination and motivation, makes the US a great place to be an entrepreneur."

Entrepreneurship is important to the economy because it:

1. Spurs economic growth

When entrepreneurs build businesses, it affects every part of the economy. Unemployed people get jobs through it directly or indirectly. New services and products developed by entrepreneurs increase the exchange of money in the country and abroad as well which spurs economic growth.

2. Adds to the national income

As new businesses or enterprises boom, it creates opportunities for people. A large number of people get employed through it. An increase in employment adds to national income in the form of tax revenue and higher government spending. This amount can be used by the government for the betterment of other struggling sectors.

3. Generates employment opportunities

Business enterprises are one of the biggest sources of jobs in a nation. Entrepreneurship firms not only empower an individual but also creates opportunities for many people. A startup requires various people with different skill sets to run smoothly creating job opportunities for several people in various fields.

4. Is about Innovation

Entrepreneurship is like an incubator of innovation. In this competitive world innovation is one thing that will separate you from the rest. To create an outstanding product, build a stronger network, reach out to consumers quickly, you need to innovate. To fulfill the demands of the people and to cope up with the market competition, entrepreneurs come up with creative ideas and services. And this brainstorming to fill the consumer needs makes them innovative thinkers.

5. Impacts on community life

The establishment of an enterprise helps promote numerous retail facilities, a higher level of homeownership, fewer slums, better sanitation standards, and higher expenditure on education, recreation, and religious activities. 

They invest in community projects and provide financial support to local charities. This enables further development beyond their ventures.

Thus, entrepreneurship leads to more stability and a higher quality of community life.

6. Contributes to a Better standard of living

The standard of living is a concept built on an increase in the amount of consumption of a variety of goods and services over a particular period by a household. 

And it depends on the availability of diversified products in the market. Along with that by creating job opportunities increases the income of the people resulting in the enhancement of their standard of living.

Ownership of luxury cars, computers, mobile phones, the rapid growth of shopping malls, etc. are some factors that indicate the rising living standards of people, and all this is due to the efforts of entrepreneurs.

Economic development means a process of upward change whereby the real per capita income of a country increases over some time. Economic growth has always been a serious issue and in the last 6 months, it has become a worldwide problem. There is a sudden decline in the economic growth of every country due to this pandemic.

Entrepreneurs serve as catalysts in the process of industrialization and economic growth. Entrepreneurship has historically spurred minorities, women, and immigrants to create better lives for themselves and their families. Currently, minorities own 15 percent of all U.S. businesses, accounting for $591 billion in revenue. Women are starting businesses at one-and-a-half times the national average and currently own 40% of all businesses, producing nearly $1.3 trillion in revenue.

America’s entrepreneurs not only contribute greatly to their local communities, but they are also drivers of the national economy as a whole. That, in and of itself, is worth celebrating. November is National Entrepreneurship Month in the U.S. It is a time to applaud the achievements of the small business community. But it is also an opportunity to position current and future small business owners for success in the years ahead. That is the mission of the SBA. We offer a variety of resources that entrepreneurs can leverage to help them start and grow their businesses.

• SBA Resource Partners: When your goal is to build a business from scratch, or take the one you have to the next level, you need people in your corner who have been there before. That is what you’ll find in an SBA Resource Partner like SCORE. SCORE mentors provide no-cost counseling and a wide range of services such as training and webinars. You can also enlist the help of your local Small Business Development Center, Veterans Business Outreach Center, or Women’s Business Center. For those in underserved communities, the Community Navigator Pilot Program can connect you to financial assistance, industry-specific training, and more.

• Funding Programs: All small business owners have to start somewhere. For many, it begins with obtaining funding through the SBA. With guaranteed loans, the SBA reduces risk for lenders, ultimately enabling easier access to capital. SBA-guaranteed loans carry competitive terms and unique benefits such as lower down payments and flexible overhead requirements. Once you’ve calculated your startup costs, just use the Lender Match tool to find a lender that is right for you. The SBA can also connect small business owners with investors through licensed Small Business Investment Companies (SBICs).

• Learning Platform: Entrepreneurs reach their full potential when they are empowered and educated. To that end, the SBA’s digital learning programs can give America’s small business owners the tools and know-how they need to launch their businesses and see them thrive. SBA Learning Center courses teach the ins and outs of business ownership, from market research to day-to-day operations. Group-specific programs, such as Ascent for Women and Boots to Business for transitioning service members, are tailored toward helping their attendees navigate their unique entrepreneurial journeys. For established business owners, T.H.R.I.V.E. Emerging Leaders Reimagined is designed to accelerate growth.

America’s entrepreneurs have done great things, and with continued support, the sky is the limit. National Entrepreneurship Month is an excellent time to learn more about resources available to you at www.sba.gov.

NY Daily News Contributor criticizes New York Cannabis Law

I’d like to draw your attention to a commentary that appeared in the Tuesday, November 1, edition of the New York Daily News about New York State’s new cannabis law. Titled ‘NY’s cannabis law: A problem for young people,” the writer sought to illustrate the problems with the law that was enacted and what should be done to correct it. Indeed, while the writer is critical of selling CPD and THC products on the same shelves as children’s candies, in my visits to several recent trade exhibits, I didn’t hear any vendor encourage this practice. As a matter of fact, while some advocates of retail cannabis, including doctors, have said that under certain conditions children can take these products, but no one has expressed support for their sale to children in the same “candy story.” First of all, the price of these gummies and similar candies would be prohibitive for sales in a children’s candy story.

The writer of the column is Renee Goodwin is a professor of epidemiology at The City University of New York, adjunct professor at Columbia University’s Mailman School of Public Health and a licensed clinical psychologist.

 

New York State legalized cannabis for adult-use marijuana in March 2021. It’s little understood that several key features of the statute contradict longstanding tenets of sound public health policy and have nothing to do with social justice, adult-use cannabis or the legality of use or retail sale of cannabis.

New York has historically been known for robust public health policies which empower local communities to pass laws that meet the social, economic and public health needs of community members. But features of New York State’s Marijuana Regulation and Taxation Act are at odds with this approach, making it simultaneously more laissez-faire and more conservative than perhaps any other state cannabis law in the country.

Comparing and contrasting with California’s legalization policy provides useful insight, especially since California law is thought by some to be the “Wild West” of legalization.

The first and most surprising tenet of New York law that’s at odds with California’s: preemption, meaning the state’s authority overrides that of any local governing body to pass laws or regulations that are stricter than the state’s. New York State explicitly prohibits localities that did not entirely opt-out from participating in cannabis sales by last Dec. 31 from enacting local retail laws deemed “stricter” than the state law. Moreover, New York State says that once a municipality has opted into allowing cannabis sales, it can never change its mind. That’s ridiculously rigid.

To provide an example of how this can play out, this spring, Suffolk County Legislator Kara Hahn introduced a bill that would more strictly regulate cannabis product packaging and advertising that appeals to children in Suffolk County. Ten of the 41 municipalities in Suffolk County opted in, including the Town of Brookhaven, within which Hahn’s district falls.

Yet if the local legislature passes it, New York State can sue the county and likely win. This is the opposite of California’s law, where jurisdictions, rather than the state, retain the authority to choose what is best for their communities, and it’s the opposite for countless other issues in New York, from speed limits to the placement of stop signs.

Second, New York passed the first law in the nation to allow the public consumption of cannabis. Unlike secondhand tobacco smoke, there are no laws protecting children from secondhand cannabis smoke and there are mounting data linking secondhand cannabis exposure to adverse health outcomes among children. It is difficult to see how this advances public health goals, especially amidst the tough tobacco control laws that have dramatically reduced secondhand exposure to tobacco smoke.

Third, New York permits the co-location of tobacco and cannabis products in the same retail outlet. The public health rationale for prohibiting such co-location should go without saying; research shows that cannabis use increases after a state legalizes for recreational use, youth who use cannabis use are more likely to start using tobacco and e-cigarettes and that co-use of cannabis and cigarettes is much more common in states that have recreational legalization. In contrast, California does not allow co-location of sales; there, the prevalence of cigarette use among youth is lower than in any other state except Utah.

Fourth, in California, only those 21 and over may enter outlets that sell cannabis. And cannabis dispensaries sell only cannabis: no tobacco, no food, no beverages. IDs are checked at the door and again at the point of sale. New York allows candy, food and beverages to be sold in cannabis dispensaries and does not require an individual to be at least 21 to enter.

It is not clear whether New York lawmakers who passed this law understood what the preemption clause does, nor is it clear if they were in favor of selling tobacco and cannabis together in stores where minors are permitted to shop for candy — perhaps placed side by side with cannabis gummies and soda, in a case next to THC-infused beverages — when they voted to pass this law.

Our work has shown that cannabis use has been increasing among parents nationally and, as of 2017, was much higher in legal states. Strong laws, policies and regulation could make legalization a success for all and protect the states’ most vulnerable citizens, children. But that’s not what we have here.

Since not a single recreational license has been issued in NYS, it is not too late to change the regulatory features of the law while maintaining legalization and the social justice gains that legalization brings.

If the past six years have taught us anything, it is that leaders make mistakes. True leaders acknowledge when they have made a mistake and then do what they can to fix it. That time is now.

These stats will be a boon to the nascent cannabis business. A survey of 1,000 Americans conducted by Clever, a real estate research and data company, found that 56% of Americans would consider buying a home that was next door to a cannabis dispensary, and that 72% percent were okay with living within a mile of one. Read the full story in Chain Store Age: https://chainstoreage.com/survey-half-americans-would-buy-house-next-door-cannabis-dispensary

New Jersey Announces Technical Assistance Program for Cannabis Entrepreneurs

TRENTON – The New Jersey Cannabis Regulatory Commission has made a recommendation to the Department of the Treasury to fund the Cannabis Training Academy.  The program is to be run by the Department of State’s Business Action Center (NJBAC) to provide technical assistance to entrepreneurs establishing cannabis businesses in New Jersey.

The NJ-CRC’s Audit Committee recommended that funds from the Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization (CREAMM) Fund be allocated to the Business Action Center to establish a new program to provide free educational courses, technical assistance in building business plans and completing other aspects of license applications, and mentorship to cannabis business owners.

Commission Vice-chair Sam Delgado, who sits on the Audit Committee, expressed his pleasure with the program that will launch in 2023.  “We have emphasized equity and accessibility in the application process and this program will help ensure aspiring entrepreneurs have the optimal business know-how to give them the best chance for success in the cannabis space.  The Cannabis Training Academy will begin the needed training and guidance that will help individuals, and assist the budding market’s stability and success.”

“Supporting these new entrepreneurs to be successful is critical to ensure equitable representation of small and diverse cannabis businesses and owners,” Secretary of State Tahesha Way added. “This assistance is essential to help people and communities that were targeted during cannabis prohibition to achieve greater equality, access and participation and improve their lives, families and communities.”

The NJBAC’s proposed curriculum includes modules designed to help participants decide if a cannabis business is right for them and will include business plan development as well as a Legacy to Legal course.  Some program resources will be targeted to “Specially Designated Categories,” which include social equity businesses, diversely owned businesses, microbusinesses, and Impact Zone businesses.  There will be a 10-week accelerator track to take conditional license applicants through the initial application process, and a separate track to them convert to annual licenses.

“Classes in the academy will be taught by faculty who are in or have taught or consulted to the cannabis industry,” said NJBAC Executive Director Melanie Willoughby. “For 40 years, NJBAC has provided real-time assistance and support to businesses to help them navigate state government and connect with helpful resources. We look forward to building on our small business advocacy work to support this emerging marketplace.” 

Joshua Belle, an advocate for legacy cannabis entrepreneurs, applauded the announcement. “Having this program designed specifically for cannabis business owners is going to be major for a lot of entrepreneurs who have the heart and the commitment for the industry but could use some help with the technical training.  It is great that it is free too. Starting a business is expensive enough and there are too many consultants and such taking advantage of cannabis business owners.”

The New Jersey Cannabis Regulatory Commission establishes and enforces the rules and regulations governing the licensing, cultivation, testing, selling, and purchasing of cannabis in the state.

#DailyCannabis Exclusive

Cannabis Business – Not for the Faint of Heart;

But with Determination, Business People will Thrive

In the cannabis/hemp industry’s latest evolutionary phase, if you’re a clever businessman with a record of successful startups who’s eyeing to move into this profitable though tricky market but lack specific skills, don’t stumble in blindly but also don’t give up – you’re in luck.

Narrow-focused service companies – MSOs – that provide a range of crucial cannabis-specific business, financial, real estate, marketing, accounting, legal, insurance, grower and other services that have calculated the potential profits have expanded into the cannabis/hemp space to help small businesses reach new highs.

I witnessed at the Real Cannabis Entrepreneur Conference on October 21-22 at the Doubletree Hotel adjacent to Newark International Airport that those companies are not robber barons jumping on the bandwagon of extra sales and profits driven by a new product but rather their expertise and services are genuinely needed because of the web of regulatory complications and lack of legal uniformity that could trip up even seasoned businessmen.

If you’re considering getting into the cannabis/hemp market for the fun of dabbling in a former illegal substance then you’re setting yourself up for failure. It’s a wild west out there and you need to be prepared. Nonetheless, despite the complications, the legal and business environment bodes well for savvy business people an industry which is characterized by enthusiasts as maturing.

West Coast states are quite mature while New York and New Jersey have just begun to get involved in the market, pointed out exhibitor Ken Tays, co-founder of Green Leaf Marketers, www.greenleafmarketers.com. “From a maturity level, we’re still very much in a growth phase. New states should look at old states to see what worked and what didn’t and then incorporate their best practices,” Tays pointed out.

While there are good opportunities in many market segments from leaf touching to dispensaries and ancillary businesses, Tays advises newcomers to study markets that aren’t saturated, where they’ll find their niche. He said prospective entrepreneurs must know what the saturation level of new licensees is today and what it is expected to be in the future.

Tays, who worked as a bank regulator for 12 years and then in financial services, understands the demands of the laws and regulations on cannabis small business owners. His company, which deals in marketing, mailings, etc., has established a compliance program for the benefit of his clients. Its framework has been designed for each state where they send mail, which is also reviewed by lawyers before dispatching circulars and parcels.

“In this business, safe, effective and legal are the cornerstones for success,” he said.

Angelo J. Amato, vice-president, retail banking, Financial Resources Federal Credit Union, https://myfinancialresources.org/, that specializes in the cannabis industry, concurs that this blossoming industry is still in its infancy, “but as it becomes more legal, we will see it grow and that’s a positive trend. We’re seeing more people accepting the industry and seeing the potential that it can have for the future.”

Amato agrees with the opinion of other exhibitors that cannabis and hemp products should be regarded as high-end products that should be marketed in boutique dispensaries and that’s his credit union’s mission. “We want to make sure that we’re helping and guiding the new business people, seeing that they’re starting out right with preliminary licenses, conditional ones or annual ones. We want to guide them through the entire process,” he said.

With cannabis banking new in the Garden State, Amato’s financial institution is striving to be the first with all of the answers to newcomers’ questions. “Right now they may understand cannabis, but we want them to understand the business of cannabis,” he added.

Insurance brokers are also part of the excitement and Rud Niles, president of East Coast Cannabis Insurance, www.EastCoastCannabisInsurance.com, sees growth by the increasing calls for quotes and letters of intent. Proof of the industry’s growth is also the booming number of ancillary, support companies that have emerged. “I also like that the stigma of being a marijuana user is going away. They’re no longer users but rather consumers,” he said.

But perhaps more so in this industry than others, entrepreneurs are getting bogged down in startup bureaucracy. “Very often they’ve gotten their license and spaces and they’re talking about building it out when local hiccups slow them down. The business people are ready but they’re not opening up their doors as quickly as they’d like.”

A myriad of challenges exist for the beginners. Tyler A. Reedman, financial advisor with HFM Investment Advisors LLC, www.HFMadvisors.com, listed two of them: capital and aligning yourself with trusted partners that are cannabis friendly, a term that was echoed by other exhibitors. Legal hurdles are massive and confusing, he added.

Nonetheless, the relaxation of regulations in New Jersey has spurred the opening of new companies. “As a result, we’re adding mature services such as 401k to legitimize their business so they can take care of their employees,” Reedman said, noting that any company that has employees or even not can open a 401k.

“It’s about retaining employees, reducing turnover and minimizing taxes. We’re seeing many people that are ready to become involved in this business. They know the hurdles and there are many of them but they’re ready to take the leap of faith,” Reedman said.

Industry advocate, Harry Carpenter, partner and co-practice leader, CitrinCooperman, www.citrincooperman.com, is very passionate about the cannabis industry as he recounts his reasons for having been involved in to for the past six years. “The reason this industry is catapulting is because it’s not just a business. There’s a passion behind this business. Maybe you see this as a plant that provides medicine, or you have someone in your family who is addicted to opioids, or you don’t like the opioid epidemic in this country, or you don’t understand why we don’t have looser laws in this country for cannabis, or maybe you or someone in your family has been incarcerated for small amounts or cannabis,” he detailed.

Carpenter continued by saying that this industry has been long time in coming to its current legal status in the United States even though it is safer than alcohol and cigarettes while providing a lot of jobs and opportunities, tax dollars for states and municipalities, medicine to people, as well as opportunities for women and minority entrepreneurs.

He expanded the list of challenges presented previously with the following points: competition, securing a location, municipality and zoning restrictions, planning board approvals, winning a license, capital and not being taken advantage of by the sharks.

Despite the seemingly tedious tasks, Carpenter is optimistic about future. “This business is a community of people. This is a $10 billion industry that will be $80 billion in 2030,” he said.

The mushrooming presence of ancillary companies was also touted by Teresa Kearney, vice-president of sales at Panacea Payroll, www.PanaceaPayroll.com.

“This tells me that the cannabis business is finally beginning to be a valid business. It is fun but it has to be run like a business. You have to pay attention to details and little things that go into running any business but more so because the IRS and states are keeping their eyes out for you,” Kearney said.

Everyone has someone is some business that could be called upon for help, but when it comes to finding a location for your dispensary, Imani Johnson of Berkshire Hathaway, www.foxroach.com, advises not to consult your uncle. “I’m in charge of locating properties so I go through zoning regulations and ordinances to locate properties where people are able to operate their cannabis business,” she said.

Her task is to help clients overcome the ton of local challenges in a very difficult process. When it comes to cannabis property, she notes that the usual automated real estate process is still done manually.

“The biggest challenge is finding the space and that’s where I come into play. Licenses and applications are straight forward but finding the property is difficult because of local ordinances, maps zoning and the uncertainty of the current owner or manager,” Johnson said.

I’ve seen food applications for cannabis at previous expos but at this one I encountered a vendor who produces cooking spices and flavors under the label “Green Panther” and has personally experienced its anti-inflammatory benefits. Jasmine “Chef Jazz” Moore, www.houseofpanther.com, is a graduate of the Baltimore International Culinary College, author of “More than a Cannabis Cookbook,” and a Crohn’s survivor. Chef Jazz’ kitchen aids are applicable in foodservice as well as retail.

Accordingly, she observes, “I want to align cannabis and food for health and happiness. I focus on the anti-inflammatory benefits, not the psycho-active ones. I just want to be healthy without the slew of medications that people take.”

Consequently, her motto is “Educate, Entertain, Empower.”

Another proponent of the high-end boutique charisma of cannabis products is Mary Sonntag of MaryBud Chocolates. A chocolatier by avocation and vocation, Sonntag refreshed her skills before marketing her confections. She also reviewed the market prices for top-shelf Belgian chocolate and added a markup for cannabis infusion.

“I developed a luxury brand of confections that appeals to older chocolate aficionados who want to spend a little more money and have fun,” Sonntag explained. “I want to take cannabis out of the shadows.”

She’s not afraid that her high prices – or those of other infused products – will scare away consumers because that image can only benefit the burgeoning industry. “Why shouldn’t there be space for a high-end product that people aren’t afraid of? After all, there’s room for a Rolls Royce,” Sonntag insisted.

In searching for a payroll company, Panacea’s Kearney recommends entrepreneurs check first if the firm is cannabis friendly – a challenge in itself is. A good payroll company needs to work with all MSOs for the success of the newfound business.

“For example, there’s very little that a cannabis business can write off on their taxes. Consequently, you want a payroll company that knows the ins and outs of that whole system so they advise about all write offs possible.  If definitely benefits business owners to have all of those pieces in place such as attorneys, accountants, payroll, real estate and others,” Kearney said.

Afterwards, she cautioned, will be too late. “Playing catch up later is not a good idea and it interferes with successfully operating the business,” she added.

All of these MSOs came full circle to Rutgers Law School, go.rutgers.edu/CLBCert, announcement of a six-month Certificate in Cannabis Law and Business that will launch in January 2023. This non-credit program brings together expert faculty from across Rutgers Law School, Rutgers School of Business – Camden, Rutgers School of Environmental and Biological Sciences, and Rutgers School of Communication and Information, alongside industry experts and guest speakers. It will provide business owners with a thorough grounding in the rules and regulations of New Jersey’s cannabis industry as they pertain to every aspect of running a business, ensuring that people entering the market have the information they need to run legally compliant businesses.

This is the first program that Rutgers Law School has developed to support participants who are not J.D. students or legal professionals. The curriculum has been developed specifically for New Jersey’s legal cannabis industry, making it highly specific to the needs of the local community.

Rutgers Law School Co-Deans Kimberly Mutcherson and Rose Cuison-Villazor said, “This new certificate is exactly the kind of work that we want to be doing as New Jersey’s state law school. Now that the state legislature has legalized the cannabis industry here, we want to ensure that we can provide crucial information to the citizens of N.J. who want to enter this business, especially those from communities that traditionally bore the brunt of punitive outcomes before legalization.”

The full six-month certificate costs $2,695. Individual modules can also be purchased for between $600 and $850. A limited number of scholarships will be available for people who have received, or who will be applying for, Social Equity business licenses through New Jersey’s Cannabis Regulatory Commission. Applications for these scholarships will open in October. Additional partnerships with community organizations will also be announced.

One more issue that attracted resounding support from the attendees that I spoke with was a future establishment of a cannabis-hemp trade organization from cultivator to boutique dispensary along with the MSOs. This type of an institution would look after the needs of the industry, train and educate the participants, assist with developing standards, and protect their interests in Washington, D.C., and states’ capitals.

Daily Cannabis

Evidence of Maturing Cannabis Industry Abounds

The wholesale and retail cannabis and hemp industry, once outlawed, reviled and shunned, is estimated to ring up in the near future billions of dollars for businesses from growers to distributors to small retailers across the country. With that vast accumulation of dollars in a relatively short amount of time, supplementary businesses and services, previously associated with developed, Main Street companies, have emerged. Some of them have transitioned from other industries while some offer services exclusively for cannabis and hemp firms.

It’s no longer, “Psst, I have some weed.” Cannabis and hemp products for legal applications are a high-end, top-shelf product available in boutiques, not on seedy urban streets. And in order to grow, the businesses need financial, marketing, tax, legal and other advice.

As an example of these opportunities, in at least one state, Colorado, marijuana sales since 2014, when it was legalized in the Rocket Mountain market, have grown to $13.4 billion, according to the Colorado Department of Revenue. Understandably, a portion of that number also ends up in the state’s tax coffers, which in the case of Colorado amounts to $2.3 billion.

The CannaOne, https://cannaone.com/,  NJ Cannabis + Investment Expo at the New Jersey Convention Center in Edison on October 10-12 was an suitable venue to witness this expanding interest and trend. Additionally, exhibitors touted wares that are natural, ecologically friendly and fast acting.

With the issues of business and sales growth touching all levels of management, including CEOs, the presence of service firms means that the industry is maturing, believes Sandy Suchoff, CPA and founder of The CannaCPAs, https://thecannacpas.com/, with offices across the country. The firm offers a range of financial and tax services dedicated to make cannabis companies more profitable.

“The cannabis and hemp industry is becoming a ubiquitous industry because it has become legal in many states but not yet on the Federal level,” Suchoff said. She noted that the company can help with legitimate strategies to mitigate negative effects of the federal and local tax code.

“We can design a plan to grow profits, set targets and use analytics to align with those targets. We set objectives to grow because, after all, cash is king from farm to retail,” Suchoff said.

According to Dope CFO, www.dopecfo.com, cannabis service companies seek to assist budding firms along the entire supply chain to “make sure that they get a bite out of the market,” observed Malvina Kay. She explained that the future of the industry depends on loosening of federal and local regulations so that sales of the legal version of cannabis and hemp can grow organically.

With consumer demand for cannabis surging, the question of where to find a small business becomes problematic. One solution is an app called Weed Maps, http://weedmaps.com. This downloadable aid assists consumers in connecting with retailers by zip code. As consumer interest grows about a product that is not going to go away, this app resolves the question of where to buy legal weed, observed Bianca Endersby, trade show and evens manager.

Realizing the need to control cannabis absorption by the body to avoid unexpected highs and lows, Azuca, https://azuca.co/, which translates into sugar, developed a time-infusion product that transforms ingestible cannabinoids into fast-acting ingredients for edibles. Alex Archuleta said the company is a manufacturer of the product that works in 5-15 minutes. Licensee relationships are available. He too believes that the industry’s growth hinges on the speed of adopting supportive laws and regulations.

With the industry’s supply chain beginning with growers, the assurance of adequate growing conditions is vital. For those that choose to grow the plant indoors, Trane, www.trane.com, offers a system that establishes and monitors the correct interior environment, observed Richard Dulski, New Jersey account manager. The benefit is that the supply chain is assured of a good product from grower to retailer, Dulski said.

For locations that permit the tobacco or smoking version of cannabis, Tuxedo Paper Co., www.tuxedopaper.com, offers a range of premium rolling paper from the Czech Republic. Ryan Yoon, marketing representative, imports ecologically friendly paper as a competitive edge to the first tier providers. He said this product will satisfy the demands of this growing market.

Devon Darden, financial services representative for Capital Strategies, www.csomtx.com, observed that the industry is riding the beneficial wave of cannabis’ social acceptance. The stigma is evaporating, the industry is maturing, the product is more acceptable, regulations are changing, all of which Darden said is a boon for the supply chain.

“Five years ago I couldn’t speak about this with my mother. Today, cannabis and hemp are acceptable products,” Darden noted.

As cannabis usage and sales become legalized across the country, Amorette Mason, Accounting Buds, www.acctbuds.com, said the need for service companies in this growing industry will be greater.

Drug arrests – even minor ones – still figure negatively on a jobseeker’s employment searchers. President Biden’s recent support for decriminalizing even minor busts is a step in the right direction but exhibitors said it’s not enough. But the personal stigma persists. Cannabis Equity Employment, www.cannabisequityemployment.com hopes to change that. The firm emphasizes social equity, impartiality, fairness and justice for all people as a social policy. Consequently, former inmates should not be denied employment. “We’re looking to create an even playing field so that formerly affected people could get back into employment,” explained Adrian Clarke, chief operating officer.

As with any budding industry with recognizably large sales projections, quality assurance, standardization and industry monitoring eliminates the need for dubious “trust me” marketing. Industry self-regulation is a process whereby members of an industry, trade or sector of the economy monitor their own adherence to legal, ethical, or safety standards, rather than have an outside, independent agency such as a third party entity or governmental regulator monitor and enforce those standards. Understandably, ingredients, top-notch salesmanship and the absence of unregulated knock-offs are essential attributes of this process. Dr. David L. Nathan of Doctors for Cannabis Regulation, www.dfcr.org, is working toward that goal. In this context, regulation does not have a negative connotation but rather a positive one.

Presently Nathan is working to develop a consensus of standards among companies across the supply chain, beginning with the business activities’ logo that is approved by the ASTM International. As with other industries, standards and unanimity ensure that everyone is operating under the same terms and symbols. The promotion of such an industry-wide good policy ensures success and profitability for all participants.

Due to the importance of this issue, we’ll be returning to it regularly in the future.

Hope to see you at the next educational/informational event, the Real Cannabis Entrepreneur LIVE Conference 2022, https://realcannabisentrepreneur.com/, Double Tree Hotel, Newark, NJ, Friday and Saturday, October 21-23.