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Unlock Data-Driven Success: Watch the Full Recording of Our Latest NCIA Webinar

The cannabis industry is evolving rapidly, and data is the key to staying ahead. If you missed our latest Service Solutions webinar, now’s your chance to catch up on everything shared by leading experts in the field. During this NCIA Industry Essentials session, we explored how cannabis and ancillary businesses can harness data to drive growth, adapt to shifting regulations, and remain competitive in a dynamic market.

The session featured Adam Hutchinson, Co-Founder of CannaSpyglass, a leading provider of market intelligence and cannabis data solutions. Adam shared valuable insights into how businesses can use data to anticipate trends, identify emerging market opportunities, and optimize decision-making. CannaSpyglass specializes in providing cannabis businesses with access to comprehensive data analytics, helping them remain agile in a competitive environment. Their expertise in leveraging real-time market data has helped numerous cannabis operators scale their businesses and stay ahead of industry changes.

Along with Adam, John Manlove, CEO of Apex Trading, and Vib Gupta, Co-Founder & CEO of CannMenus, discussed the importance of utilizing market data for B2B and B2C insights, and how companies are embedding data-driven decision-making into their operations for better performance and growth.

This session was packed with actionable takeaways on how to leverage cannabis market data, anticipate challenges, and make more informed strategic decisions.

Exclusive Offers for NCIA Members & Webinar Viewers

As part of this special session, we’re offering exclusive discounts to NCIA members and webinar viewers:

  • Essentials Plan: Get started with CannaSpyglass for just $1/month using code NCIA1DOLLAR. This plan gives you access to a wide range of cannabis data insights, allowing you to explore the latest industry trends and consumer behavior on a budget.
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  • CannMenus Offer: CannMenus is offering 60% off your first month of the Pro Suite to all webinar attendees and NCIA members. Use code NCIA60 at checkout to unlock full access to CannMenus’ suite of market analytics, sales enablement tools, unlimited real-time alerts, and custom reporting, with aggressive bundle pricing for additional markets.

These exclusive discounts give you access to the tools and resources you need to drive success in the cannabis industry. From market analytics to real-time alerts, these offerings will help you stay ahead of the competition and ensure compliance as market dynamics continue to shift.

NCIA’s Member-to-Member Discount Program: More Ways to Save

By becoming a member of NCIA, you gain access to our Member-to-Member Discount Program, which connects you with exclusive deals and services from trusted industry providers. From software solutions to legal services, our program offers discounts on products and services that can help your cannabis business stay compliant, scale, and succeed.

As an NCIA member, you unlock access to:

  • Exclusive educational content, including webinars, reports, and industry insights
  • Member-only discounts on a wide variety of business tools and services
  • Advocacy that ensures your voice is heard in important regulatory matters
  • Networking opportunities with key players in the cannabis space

Joining NCIA is more than just about savings; it’s about investing in the future of your business. Whether you’re navigating regulations or looking for new ways to grow, NCIA provides the resources, education, and connections you need to succeed.

Why Join NCIA?

By joining the National Cannabis Industry Association (NCIA), you gain access to a powerful network of cannabis professionals and resources. Our members benefit from:

  • Cutting-edge webinars and educational content that keep you informed and prepared for the future
  • Exclusive discounts that save you money on essential tools and services for your business
  • Advocacy efforts that protect your business and the cannabis industry at large
  • Networking opportunities with thought leaders, service providers, and industry professionals

Joining NCIA gives you the support and resources necessary to scale and succeed in a rapidly evolving industry.

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Don’t miss the opportunity to catch up on this essential session. Watch the full Service Solutions: Mastering Data-Driven Success webinar recording now, and discover how you can leverage market data to drive smarter, more informed decisions for your cannabis business.

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Member Blog: Ensuring Pre-Roll Compliance – Navigating New York’s Stringent Cannabis Testing Regulations

With several states going legal ahead of them, New York State regulators had the benefit of watching other states develop testing programs, which is why New York’s testing regiment goes beyond many of the early adopter states to be one of the most stringent in the nation. 

And while the rollout of licenses has been slower than many expected, testing regulations are now in place to ensure the products that do make their way to the public are safe for consumption. 

New York also requires products be tested in their final form, which means that pre-rolls, for example, will be tested with rolling papers included so it is vitally important that your rolling papers will also pass the following tests to ensure that all cannabis products are safe for human consumption. 

New York requires testing for the following: 

  • Moisture Content and water activity; 
  • Residual solvents and processing chemicals; 
  • Residual pesticides; 
  • Microbial impurities; 
  • Mycotoxins; 
  • Foreign materials; 
  • Eight different heavy metals; 
  • Cannabinoids; and 
  • Terpenes. 

Each of these tests are performed to protect consumers and are performed in some capacity by every state that has a legal cannabis program, though every state has its own regulation. 

Some of the testing limits are fairly standard, like for example the limits on moisture content and water activity. Because any water activity above 0.70 Aw creates the conditions for mold to grow, which can be harmful if consumed, New York, like most states, caps water activity at 0.65 Aw in flower and pre-rolls. Additionally, dried flower batches must have a moisture content between 5.0-15.0%, with any sample exceeding 15.0% deemed unacceptable. 

However there are some significant differences between the Empire State’s regulations and those in other markets. 

Heavy Metals Testing 

One of the major differences between New York and other programs is the number of heavy metals for which it tests. Plants absorb heavy metals from the soil, but they can damage all the body’s vital systems, including respiratory, central nervous and even the reproductive system.  

While New York tests for the “Big Four” – mercury, cadmium, lead and arsenic (all of which are toxic even at small doses) – it is also one of a handful of states that also add chromium, which can damage the kidneys and liver. 

But the Empire State goes even a step farther, requiring additional testing for copper, nickel and antimony. 

Microbial and mycotoxin testing 

Microbes and mycotoxins represent the greatest threat to human health among the tested items. 

Most people are familiar with how microbes can make you sick, which is why New York tests for Salmonella, E. coli and several Aspergillus species of mold, including A. fumigatus, A. flabus, A. niger and A. terreus. 

Mycotoxins are a toxic compound produced by molds like Aspergillus and can suppress the immune system and cause liver damage. New York requires testing for two classes of mycotoxins: Aflatoxins and Ochratoxin A. Both have properties that can alter DNA and potentially cause the formation of cancer cells. Testing for mycotoxins help ensure cannabis products are safe for human consumption.  

The limit for all mycotoxins in New York is 0.02 micrograms per gram. 

Pesticides 

Like most states, New York limits the pesticides that cannabis growers may use to help boost production and prevent insects from destroying their crop and requires labs to test for residual pesticides on product.  

All pesticide products sold in New York State must be registered with the state, unless classified as a “minimum risk pesticide” by the federal government. To help producers determine if a pesticide can be used on cannabis, the state’s Department of Environmental Conservation even added “cannabis” and “hemp” to the use/type drop down menu in its pesticide database

All pesticide use “must be declared for targeted testing” and additionally, New York law also requires labs to specifically test for 70 different pesticides, providing actionable limits.  

Ensuring New York Pre Roll Compliance  

As we noted, New York law requires all products be tested in their final form, including pre-rolls. According to the law, “the entire pre-roll or a portion of it (depending on size (blunt, 0.5-g, 1-g)) must be prepped and tested for all contaminants of concern,” which means even if your cannabis is clean, your products can fail and be destroyed if your rolling papers or pre rolled cones are not. 

Because of that, manufacturers need to protect themselves – and their customers – by carefully selecting suppliers. After all, a study from California’s SC labs found that 11% of rolling papers they tested would fail that state’s testing regiment – which doesn’t even include Chromium, copper, nickel or antimony – and that 90% of rolling papers contained heavy metals with more than 8% containing them at a rate above the allowable limits. 

Also, this year in Michigan, researchers analyzed the elemental composition of 53 different rolling papers and discovered that about 25% of the samples contained copper at levels that exceed recommendations for inhalable pharmaceuticals. They also found elevated levels of copper, chromium and vanadium. 

Pre-roll manufacturers in particular need to pay attention to their suppliers and make sure that the company from which they buy their paper takes testing as seriously as they do. This is especially true for blunt products, which contain more moisture and biomass in the hemp wraps, which makes these products more susceptible to fail these compliance tests.  

Custom Cones USA’s Compliance Manager André Bayard always recommends making sure your pre-roll paper supplier is a partner. 

“It’s important to find a supplier that does the due diligence and is willing to work with you so you know ahead of time if your papers will pass lab tests,” he says. 

Bayard notes that when contacted by a manufacturer concerned about heavy metals content causing failures, Custom Cones USA sent samples ahead of time so the manufacturer could pack and test a handful of their completed pre-rolls to make sure the products were clean before committing to a full order. 

If your pre-roll supplier is not willing to go through that step, it may be a sign that you should find another pre rolled cone supplier. 

Testing failures can be expensive and damaging to a brand, so make sure you not only keep up on the latest changes to your state’s regulations, but also work with a reputable pre rolled cone company to get the cleanest, best tested pre rolled cones you can find. And always ask to see COAs. Even if you are just a dispensary selling rolling papers and empty cones for smoking, offering tested papers and pre rolled cones is crucial to protect your brand and offer quality products to your customers.  

Join Us for More Exclusive Insights on the Michigan Marketplace

Striving to stay informed about New York’s dynamic cannabis industry? Mark your calendars for our upcoming New York Stakeholder Summit being held in New York, NY on Tuesday, September 24th.

At the New York Stakeholder Summit you’ll be able to dive deep into the latest trends, regulations, and opportunities shaping New York’s cannabis landscape, including hearing directly from John Kagia Hanna, Director of Policy for New York’s Office of Cannabis Management. All industry professionals are invited; NCIA members attend free. Register here to secure your spot.

Committee Blog: A Guide to Navigating Cultivation Environmental Requirements

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.

Member Blog: Colorado’s Evolving Cannabis Testing Regulations

Among the first two states to legalize and the first market to open, Colorado has had adult-use cannabis regulations in place for more than a decade now and helped set a standard for all the programs that came after it. 

But Colorado’s testing regiment, like the industry, is ever evolving, with the state testing for additional pesticides beginning this year, for example. In addition, the state’s new “reduced testing allowance” could make the whole process easier for manufacturers in good standing. 

Like many states, Colorado requires testing of the final product, be it flower, edible or pre-roll, which means not only must your flower be clean, but everything else you put into your products as well. In the case of pre-rolls, that means the paper used in the pre-rolled cones, as well as the filter tip. 

All products must be screened by a state-licensed and accredited laboratory for the following:  

  • Moisture Content and water activity; 
  • Residual solvents and processing chemicals; 
  • Residual pesticides; 
  • Microbial impurities; 
  • Mycotoxins; 
  • Foreign materials; 
  • The “big four” heavy metals (arsenic, cadmium, lead and mercury); and 
  • Cannabinoid potency. 

WATER ACTIVITY 

Like every state, Colorado testing requires laboratories check for water activity because high amounts of moisture can create an environment with the potential for mold growth.  

Any water activity above 0.70 Aw creates the conditions for mold to grow, which can be harmful if consumed, which is why Colorado caps water activity at 0.65 Aw in flower and pre-rolls. 

PESTICIDES AND SOLVENTS 

Colorado also requires testing for residual pesticides and other chemicals and has been slowly ramping up its required pesticide testing.  

For example, on January 1, 2023, the state tested for a total of 13 different pesticides. By July 1, 2023, that number had increased to 28. But new regulations going into effect this year drastically increase that number.  

Beginning July 1, 2024, state law requires labs to test cannabis products, including completed pre-rolls, for 99 different pesticides, each with their own actionable limits that can cause a whole batch to be destroyed. 

Additionally, the state requires cannabis concentrate products, including those used in infused pre-rolls that combine flower with a concentrate for increased potency and flavor, to be tested for residual solvents. 

The state requires testing and provides actionable limits for 13 specific solvents that can be used to make extracts and concentrates, as well as requiring “none detected” for “any other solvent not permitted for use.” 

HEAVY METALS 

The Centennial State also requires testing for the heavy metals mercury, cadmium, lead and arsenic. All four metals are toxic to humans, even at small doses, and can damage all the body’s vital systems, including pulmonary, reproductive and even the central nervous system.  

Testing for heavy metals is especially important because cannabis plants are a well-known bio-accumulator that absorbs and collects heavy metals from the soil in which it grows.  

For all inhalable products, including pre-rolls, the state sets the pass/fail actionable level at 1.5 parts per million (PPM) for mercury and arsenic, 0.5 PPM for cadmium and 1 PPM for lead.   

MICROBIALS AND MYCOTOXINS 

But while heavy metals are dangerous, they do not pose the greatest risk to human health among the testing. That distinction is reserved for microbials and mycotoxins. 

Among the microbes – bacteria and fungus – for which Colorado requires testing are salmonella, Staphylococcus aureus and e coli. There is also a total yeast and mold limit. 

Mycotoxins are a toxic compound produced by molds, such as Aspergillus, and can suppress the immune system and cause liver damage. Testing for mycotoxins help ensure cannabis products are safe for human consumption.  

Colorado requires testing for two classes of mycotoxins, Aflatoxins and Ochratoxin A, each with an actionable limit of 20 PPM. Both have properties that can alter DNA and potentially cause the formation of cancer cells.  

PRE-ROLL TESTING 

But it’s not just the flower that needs to be tested in Colorado. Products must be tested in their final form, which means that pre-rolls, for example, must be tested after they have been packed, so the paper has to be as clean as the flower. And with no regulations or requirements on the testing of rolling papers themselves, several manufacturers have run afoul of the rules because of untested rolling papers or wraps. And testing by SC Labs, one of California’s licensed testing labs, found that 11% of rolling papers tested during a recent study would fail testing. So even if you are packing your own pre-rolls, it’s important to make sure the paper you choose is tested and clean. 

Colorado has also had issues with this in the past, particularly in palm leaf wraps and blunts. In 2022, the states Marijuana Enforcement Division issued a recall for King Palm products due to unsafe mold and yeast levels found in the products. 

“Take due diligence to make sure your product is viable,” says Custom Cones USA Compliance Manager André Bayard, noting that manufacturers should work with suppliers that are working to set industry standards. “Any one issue can be detrimental to your brand reputation.” 

REDUCED TESTING ALLOWANCE 

Recognizing the unique challenges and cost of testing, Colorado has introduced new reduced testing allowances, including one tailored for pre-roll cannabis products. This allowance enables cannabis manufacturers to submit composite samples for testing, rather than subjecting each individual batch of pre-rolls to separate testing.  

For example, a manufacturer may achieve a Reduced Testing Allowance for contaminant testing for a specific product, like pre-rolls, if every production batch that it produced during at least a four- to eight-week period passed all contaminant tests. However, if those pre rolls are produced using different input materials, such as a different cannabis category (e.g. flower or trim), different wrapper materials, different processes or different equipment, they must get a separate Reduced Testing Allowance. 

Additionally, effective July 1, 2024, to achieve or maintain a Reduced Testing Allowance for microbial contaminants, a cultivation facility must have a Hazard Analysis and Critical Control Point (HACCP) System in place. An HACCP must contain elements defined in ASTM D8250-19: “Standard Practice for Applying a Hazard Analysis Critical Control Points (HACCP) System for Cannabis Consumable Products” that addresses each product type for which a microbial contaminant Reduced Testing Allowance is sought. 

It’s important to highlight that not all cannabis products qualify for this reduced testing allowance, and pre-roll manufacturers must meet specific criteria to be eligible for this exemption. For example, to get a reduced testing allowance for microbial testing, a company must maintain cleaning records and maintenance records.  

Reduced testing allowances are valid for one year. 

It’s a complicated program to be a part of, but well worth it for manufacturers who have their procedures locked in, as well as a supplier that also tests their pre-rolled cones and tubes to the highest standards to ensure passage of these important tests. 

FINAL THOUGHTS 

Colorado’s pre-roll cannabis testing regulations play a vital role in safeguarding public health and ensuring consumer confidence in the state’s legal cannabis industry. And from a business standpoint, a testing failure can be costly, especially for smaller businesses, and can follow a company and its products even after the issue is corrected. 

Make sure your suppliers take the same care as you do to ensure passage of all required tests. And always ask for COAs.  

Member Blog: Breaking Ground – Maryland’s Leading Role in Cannabis Testing Standards

With the advantage of watching several other states blaze the regulated and tested trail before it, the state of Maryland’s cannabis testing program is one of the more robust and modern of the current industry. After long delays, the state’s medical program – which included a testing program – finally got off the ground in 2017. Then in November 2022, voters approved recreational, adult-use cannabis. Sales officially began in February 2023. And like all legal states, Maryland requires producers to have their products lab-tested to ensure consumer safety, including a few additions or changes that early-adopter states may not include in their programs. 

Under Maryland state law, all “raw plant material” including pre-rolls are required to be tested at a state-licensed laboratory for: 

  • Moisture Content and water activity;  
  • Residual solvents and processing chemicals;  
  • Residual pesticides;  
  • Microbial impurities;  
  • Mycotoxins;  
  • Foreign materials;  
  • The “big four” heavy metals (arsenic, cadmium, lead and mercury) and chromium;  
  • Cannabinoids; and 
  • Terpenes 

Aside from cannabinoids and terpenes – which is information consumers often look for and want to know when purchasing – all the rest are safety issues. 

“Laboratory testing minimizes the risk of pesticides, microbes, heavy metals, toxins, and residual solvents from being consumed by an immunocompromised population,” reads the most recent revision of the Maryland Cannabis Administration’s Technical Authority For Cannabis, a 33-page document detailing the requirements and procedures labs in the state must perform on cannabis products. 

Like many states that have come online in later waves of legalization, Maryland law requires testing of cannabis products in their final form. That, for example, means testing the completed, fully-packed pre-roll, not just the flower that gets packed into it. 

That means all your ingredients, including your pre-rolled cones, need to be as clean as your flower, or you risk losing the whole batch due to a failed test. 

MICROBIALS AND MYCOTOXINS 

While adult-use cannabis sales continue to climb, Maryland still has a fairly robust medical marijuana program that includes nearly 134,000 patients. For those consumers in particular, making sure the cannabis products they use, including pre-rolls, are as safe as possible is vitally important. 

Testing for Microbials and Mycotoxins, for example, while important safety considerations for healthy users, is key for those who may be immunocompromised. Mycotoxins are a toxic compound produced by molds, such as Aspergillus, and can suppress the immune system and cause liver damage.  

Maryland requires testing for two classes of mycotoxins, Aflatoxins and Ochratoxin A. Both have properties that can alter DNA and potentially cause the formation of cancer cells. Testing for mycotoxins help ensure cannabis products are safe for human consumption. 

Regulations require a total mycotoxin concentration of less than 20 parts per billion in order to make it to dispensary shelves. 

Maryland law also requires testing for E. coli and Salmonella, among others. 

In a similar vein is the requirement to test for water activity, a measure of the available water that can be a breeding ground for microbiological growth. Like most states, Maryland caps water activity at 0.65 Aw in flower and pre-rolls, since water activity above 0.70 Aw creates the conditions for mold to grow, which can be harmful if consumed. 

HEAVY METALS INCLUDING CHROMIUM 

Heavy metals are absorbed into the plant from the soil and can damage all the body’s vital systems, including respiratory, central nervous and even the reproductive system. 

Like many states, Maryland requires testing for the “big four” heavy metals mercury, cadmium, lead, and arsenic, which are toxic to humans, even at small doses. But unlike many legacy markets, Maryland is among a handful of recently-legal states that also require testing for chromium, another dangerous heavy metal. Once chromium reaches the bloodstream, it can damage the kidneys, liver and blood cells with the potential for renal and liver failure if untreated. 

RESIDUAL PESTICIDES AND CHEMICALS 

Maryland also has strict laws regarding the use of pesticides and other “crop protection agents” (like fungicides) on cannabis. There are 146 crop protection agents approved for use on cannabis by the Maryland Department of Agriculture. 

The state also specifically requires testing for 48 pesticides and plant growth regulators, each with their own actionable limits, any of which can require the product to be destroyed. 

There are similar requirements for residual solvents used in the process to create cannabis extracts for vape cartridges or infused pre-rolls. 

LAB REQUIREMENTS 

Along with direction on actionable limits, Maryland requires that all cannabis products be tested at one of the four labs that are certified by the state and accredited to ISO/IEC 17025 by an International Laboratory Accreditation Cooperation (ILAC) recognized third party.  

Additionally, the state offers guidance on exactly how samples are to be collected and maintained, including notes on be sure the lab is clean and that employees use personal protective equipment to ensure samples are not contaminated. There is also direction on the standard operating procedures required for some of the tests. 

“To reliably provide the laboratory with a representative sample, standard sampling methods with descriptive steps must be applied with quality and consistency,” reads the technical authority document. “All sampling must be consistently performed using accepted methodologies.” 

PRE-ROLL COMPLIANCE AND SAFETY 

As noted, Maryland’s cannabis testing is done on products in their final form, meaning that, for example, any pre-rolls must be tested after being packed in their cones. That means that no matter how attentive to the rules you are, your product can still fail if your pre-roll supplier is not as diligent as you are. 

On top of that, customers – especially medical patients – should not be worried that the products they are using to help feel better will make them sicker, whether they purchase a pre-roll at a store or pack a cone at home themselves with their favorite flower. 

“You’re putting something in your body; make sure it’s high quality,” says Custom Cones USA Compliance Manager André Bayard. 

Testing is not required on rolling papers and pre-rolled cones, so many producers do not know what they are getting in their paper, which can contain all of the same dangers as cannabis. For example, a study from California’s SC labs found that 11% of rolling papers they tested would fail that state’s testing regiment, which doesn’t even include Chromium, and that 90% of rolling papers contained heavy metals with more than 8% containing them at a rate above the allowable limits 

Bayard recommends making sure your pre-roll supplier has COAs available to prove their products are clean and will pass tests or will send you samples for you to test before committing to a full order. 

“Work with a company that focuses on those requirements and are trying to set the industry standard with their products,” Bayard says. “Any one issue can be detrimental to your brand reputation.” 

JOIN US AT THE FOREFRONT: REGISTER FOR NCIA’S MARYLAND STAKEHOLDER SUMMIT

Don’t miss out on the opportunity to delve deeper into Maryland’s cannabis landscape at the upcoming NCIA Maryland Stakeholder Summit 2024. This event, hosted by the National Cannabis Industry Association on Tuesday, April 2nd in Baltimore, MD brings together key players, industry experts, and stakeholders to discuss the latest developments, regulations, and opportunities shaping Maryland’s cannabis market.

 

As a special offer for Industry Insights readers, NCIA is excited to provide a 20% discount code for summit registration. Simply use the code CUSTOMCONESMD25 at checkout to unlock your savings and secure your spot at this must-attend event.

Whether you’re a producer, retailer, advocate, or simply interested in learning more about the industry, this summit offers invaluable insights and networking opportunities. Join us as we explore strategies for navigating regulatory challenges, ensuring product quality, and driving innovation in this dynamic sector.

Register now to secure your spot at the Maryland Stakeholder Summit and be part of the conversation driving Maryland’s cannabis industry forward. Don’t miss your chance to connect with industry leaders, gain valuable knowledge, and contribute to the growth and success of Maryland’s cannabis market.

Register here and be at the forefront of Maryland’s cannabis revolution!

 

California Cannabis Regulations: From Policy to Practice | Policy Matters | 02.08.24

Illuminating California’s Cannabis Regulations: Insights from Industry Leaders

Welcome to the fourth edition of our esteemed Policy Matters series, where we embark on a journey through the intricate landscape of California cannabis regulations. This series, made possible by the collaborative efforts of the National Cannabis Industry Association (NCIA) and its dedicated Policy Co-Chairs, Khurshid Khoja of Greenbridge Corporate Counsel and Michael Cooper of MadisonJay Solutions, serves as a beacon of insight and discourse in the ever-evolving landscape of cannabis regulation.

Building upon the foundational discussions initiated by our previous editions, this installment shines a spotlight on California’s pioneering strides in cannabis policy. In this blog post, we’ll delve deep into the dialogues and revelations shared during the recent webinar broadcast hosted by the NCIA, exploring the multifaceted dynamics of policy-making and enforcement in one of the nation’s most influential cannabis markets with Nicole Elliott, Director of the California Department of Cannabis Control.

In September, we had the privilege of featuring Will Tilburg from the Maryland Cannabis Administration, followed by John Hudak, Director of the Maine Office of Cannabis Policy, in October, and Brian Hanna from the Michigan Cannabis Regulatory Agency in December. Each edition has been a testament to the diverse array of regulatory approaches across states, enriching our collective understanding of the industry’s intricate tapestry.

Brian Gilbert, Deputy Director of Events and Education at NCIA, set the stage for the discussion, emphasizing the importance of dialogue and collaboration in navigating the complexities of California cannabis regulations. With California serving as a focal point, the webinar delved into the multifaceted aspects of cannabis policy and enforcement.

Understanding Cannabis Policy in California & Journey to the Role

Kicking off the conversation by recognizing the pivotal role of  Nicole as one of the longest serving and most experienced cannabis regulators in the country, Khurshid & Michael expressed gratitude for her contributions to the industry. Nicole then shared her journey from local government to cannabis regulation, highlighting her commitment to social justice and equity. Her firsthand experiences with the criminal justice system underscored the importance of inclusive policies and community engagement in shaping regulatory frameworks.

An emphasis was placed on the significance of California’s regulatory evolution from a pioneering medical marketplace and its impact on industry inclusivity and diversity. From supporting legacy operators to promoting market stability, California’s regulatory efforts have paved the way for innovative initiatives like the Appalachians of Origin program, reflecting a commitment to equitable industry growth.

Enforcement Strategies and Real California Cannabis Campaign

Throughout the conversation, Nicole emphasized the importance of aggressive enforcement strategies to combat the illicit market effectively. California’s Unified Cannabis Enforcement Task Force spearheads enforcement efforts, targeting illegal activities such as labor trafficking and environmental contamination. The introduction of the Real California Cannabis campaign aims to shift consumer purchases to legal markets, fostering accountability and consumer safety.

Commitment to Social Equity and Compliance

At a pivotal moment, Nicole Elliott acknowledged historical inequities in the cannabis industry, advocating for initiatives beyond licensing solutions. Fee waivers and promising practices are key components of California’s social equity programs, promoting inclusivity and supporting operators from marginalized communities.

With consumer safety at the forefront, the Department of Cannabis Control prioritizes compliance and transparency in enforcement actions. Operators must adhere to regulations to ensure product safety, with penalties imposed for non-compliance. Transparent enforcement actions empower operators to uphold regulatory standards and foster consumer trust.

Challenges and Opportunities, Partnerships and Collaboration

The influx of hemp-derived cannabinoid products presents regulatory challenges at the federal and state levels. Collaborative efforts between regulators and industry stakeholders are essential to address public health concerns and ensure regulatory compliance. Federal rescheduling efforts and cultivator regulations further underscore the need for adaptive regulatory frameworks that prioritize consumer safety and industry viability.

The webinar highlighted the importance of partnerships and collaboration in addressing regulatory challenges and fostering a safe and thriving cannabis market. Organizations like the Cannabis Regulators Association (CANNRA) play a pivotal role in facilitating dialogue and sharing best practices among regulators and industry stakeholders.

Curtains Drawn: Reflecting on Insights, Looking Forward to Action

As we draw the curtains on yet another insightful edition of our Policy Matters series, we extend our heartfelt gratitude to our readers, esteemed speakers, and the unwavering guidance of NCIA’s Policy Co-Chairs, Khurshid Khoja and Michael Cooper. Their steadfast commitment to fostering dialogue and collaboration has been instrumental in shaping the discourse surrounding cannabis regulation and policy.

To delve deeper into these discussions and gain comprehensive insights on California cannabis regulations, we encourage you to view the complete recording of the webinar on our YouTube channel. There, you’ll find a wealth of information and perspectives from our esteemed speakers, shedding light on the complexities and opportunities within the California cannabis regulatory landscape.

From the corridors of Maryland to the rugged landscapes of Maine, and the vibrant markets of Michigan and California, each edition has illuminated the diverse spectrum of regulatory frameworks and industry dynamics shaping the cannabis landscape. As we eagerly anticipate future editions, let us continue our pursuit of knowledge, empathy, and innovation, forging a path towards a more equitable and prosperous cannabis industry for all stakeholders involved.

California Stakeholder Summit: Bridging Policy and Practice

We hope you’ve made plans to join us for our California Stakeholder Summit, taking place later this month on Thursday, February 22nd in Sacramento, CA. This event promises to be a pivotal moment for stakeholders across the California cannabis industry as we convene to explore topics including proposed state legislation affecting hemp-derived cannabinoid products and the impact of federal rescheduling on state-legal markets.

Nicole Elliott will be speaking on a panel alongside Congresswoman Barbara Lee (D-Oakland) and moderated by NCIA Director of Government Relations Michelle Rutter Friberg. Together, they will delve into the complexities of federal rescheduling and its implications for California’s cannabis regulations and dynamic marketplace.

Join us as we bridge the gap between policy and practice, forging meaningful connections and driving forward progress in one of the nation’s most influential cannabis markets. Don’t miss this opportunity to be part of the conversation shaping the future of cannabis regulation in California and beyond. Register now to secure your place at the California Stakeholder Summit 2024.

Committee Blog: Leveraging Business AI Tools for Scaling Cannabis Companies – Strategies and Implementation

Produced by: NCIA’s Retail Committee

Introduction

The cannabis industry has experienced remarkable growth in recent years, as both regulatory landscapes and public perceptions shift. As the market expands, cannabis companies face increasing pressure to scale their operations while maintaining compliance and meeting customer demands. In this era of digital transformation, Business AI tools, such as ChatGPT, offer innovative solutions that can empower cannabis companies to streamline processes, enhance customer experiences, and drive growth. A tremendous benefit is it takes little skill to learn how to use AI for a beginner or one could work with an expert in AI. In this article, we will explore the potential of AI tools in the cannabis industry and delve into strategies for their effective implementation to achieve desirable business outcomes.

The Power of Business AI Tools in the Cannabis Industry

Artificial Intelligence (AI) is transforming various industries, and the cannabis sector is no exception. Business AI tools encompass a range of technologies, including natural language processing (NLP), machine learning (ML), and data analytics, all of which can be harnessed to address the unique challenges faced by cannabis companies seeking to scale.

  • Enhanced Customer Engagement: One of the critical aspects of scaling any business is effective customer engagement. AI-powered chatbots, like ChatGPT, can provide personalized, round-the-clock support to customers, addressing inquiries, guiding purchasing decisions, and even providing product recommendations. These chatbots create a seamless and responsive customer experience, fostering loyalty and increasing sales.
  • Data-Driven Insights: AI tools can analyze vast amounts of data to extract valuable insights that can inform strategic decisions. For cannabis companies, this could mean analyzing customer preferences, tracking market trends, reviewing internal operations management, and optimizing supply chain management. These insights enable businesses to adapt quickly to changing market dynamics and stay ahead of competitors.
  • Process Automation: Tedious and time-consuming tasks can hinder scalability. AI-powered automation can optimize inventory management, order processing, and regulatory compliance, allowing employees to focus on higher-value activities. This not only increases efficiency but also reduces the risk of errors.
  • Predictive Analytics: Predicting demand and optimizing production are crucial for scaling operations. AI can analyze historical data to forecast market demand, ensuring that companies can maintain sufficient inventory levels and avoid overstocking or shortages.
  • Regulatory Compliance: Navigating the complex and ever-changing landscape of cannabis regulations is a significant challenge. AI can assist in monitoring compliance by cross-referencing business practices against current regulations, minimizing the risk of legal issues.

Implementation Strategies for Business AI Tools

While the potential benefits of AI tools are clear, effective implementation is key to realizing those benefits. Here are some strategies for cannabis companies to consider when integrating AI technologies into their operations:

  • Identify Pain Points and Goals: Begin by identifying the specific pain points your cannabis company faces in its scaling efforts. Whether it’s customer service bottlenecks, inventory management challenges, or regulatory compliance hurdles, pinpointing these issues will guide your AI implementation strategy.
  • Certified Professionals and Agencies: Collaborating with certified AI professionals or agencies that specialize in your industry can provide invaluable expertise. These experts can assess your business requirements, recommend suitable AI tools, and tailor solutions to your unique needs. Their experience ensures a smoother and more effective implementation process.
  • Data Collection and Preparation: AI thrives on data, so ensuring clean, accurate, and comprehensive data is crucial. Collaborate with your AI partner to define data requirements, gather relevant information, and organize it for analysis. This step forms the foundation for accurate predictions and insights.
  • Customization and Training: Generic AI models can be a starting point, but tailoring these models to your cannabis business is essential. Work with your AI professionals to fine-tune algorithms, customize chatbot responses, and train the system to recognize industry-specific nuances.
  • Continuous Monitoring and Improvement: Implementing AI tools is not a one-time task. Continuously monitor AI performance, gather feedback from customers and employees, and refine your AI systems accordingly. This iterative process ensures that your AI tools evolve with your business needs.
  • Change Management and Training: Introducing AI into your company may require employees to adapt to new processes. Effective change management, including training programs and clear communication, can help employees embrace AI technologies and use them to their full potential.

Desirable Outcomes and Future Considerations

The successful implementation of Business AI tools can yield a multitude of desirable outcomes for cannabis companies:

  • Scalability: By automating processes and optimizing operations, cannabis businesses can scale their production, distribution, and customer base more efficiently.
  • Improved Customer Experiences: AI-powered chatbots provide prompt and personalized customer service, enhancing the overall experience and fostering brand loyalty.
  • Data-Driven Decision-Making: AI-driven insights enable data-backed decisions, reducing uncertainty and enabling proactive responses to market changes.
  • Regulatory Adherence: AI tools can help ensure compliance with evolving cannabis regulations, minimizing legal risks and potential setbacks.
  • Innovation and Competitive Edge: Embracing AI technologies positions cannabis companies as forward-thinking, innovative players in the industry, setting them apart from competitors.

As the cannabis industry continues to evolve, it’s important to consider potential future developments and challenges. These may include:

  • Ethical Considerations: As AI becomes more integrated into business operations, it’s important to address ethical concerns surrounding data privacy, transparency, and bias.
  • Regulatory Changes: The cannabis industry’s regulatory landscape is dynamic. AI tools must adapt to new rules and compliance requirements, requiring ongoing monitoring and adjustments.
  • Advanced AI Capabilities: AI technology is advancing rapidly. Cannabis companies should stay informed about emerging AI tools and consider how they can further enhance business operations.

Conclusion

In the ever-expanding cannabis industry, the integration of Business AI tools holds immense potential for companies aiming to scale their operations and achieve sustainable growth. From enhancing customer engagement to optimizing processes and predicting market trends, AI technologies like ChatGPT offer tangible benefits that can drive innovation and success. By partnering with certified professionals or agencies and following effective implementation strategies, cannabis businesses can navigate the complexities of AI adoption and position themselves as industry leaders. As the industry evolves, a thoughtful and strategic approach to AI implementation will be essential for cannabis companies looking to thrive in a competitive market.

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