The cannabis industry comes with challenges in a lot of areas but one big challenge is marketing. Though it varies depending on location, the roadblocks to traditional marketing options are numerous.
Commonly implemented restrictions include:
Advertising marijuana products within a specific distance of a school or area where children often spend time.
Television, radio, or print ads.
Advertising on public or private vehicles.
Marketing to children, including using toys, inflatables, cartoon characters, etc.
Mascots (human, animal, or mechanical such as inflatable tubes, people in costumes, or sign spinners).
Billboard advertising (some states make an exception for marijuana retailers).
Indoor advertisements unless minors are not permitted in the facility.
Advertising in arenas, stadiums, state fairs, shopping malls, arcades, and farmers markets.
Packaging and labeling information, colors and branding information.
In addition, ads must likely include text that says marijuana products can only be purchased by people who are 21 years of age or older as well as other required warnings. With all these restrictions, the prospect of cannabis marketing can seem dismal.
Fortunately, with some creativity, there are solutions.
Website – You probably already have one, but if not, then this is your most important piece of the marketing puzzle. It’s how customers find you and your products.
SEO (Search engine optimization) – Make sure that your website is optimized as this will drive traffic directly to your website. Get as many eyes on your content as possible.
Social Media – Although there are many rules to follow, this is another great way to get your name and content circulating.
Digital advertising on marijuana friendly websites – Some websites specialize in helping customers find cannabis retailers. Make sure your name comes up when they search! Examples of this are Leafly.com and iHeart Jane.
Old fashioned word of mouth – With good customer service and products, word will spread and bring in new customers.
Text messaging – There are many platforms available that allow you to send text message marketing to your existing customers. This allows you to notify them about specials and new products.
Email – Much like text messaging, there are many possible ways to manage email marketing campaigns to your customers.
Local community service, advocacy, educational seminars, and sponsorships – This is a great way to not only get your company name out there but also to establish your company as a contributing part of the community.
It is likely you have seen a digital menu board, maybe in a restaurant or dispensary. They are a great way to communicate with customers, especially if you have a “menu” that changes frequently.
Earlier this year we published a blog post on the subject. In this article we will go into more detail.
1. Entertain and inform customers while they wait.
Obviously, a digital menu board is informative but it also gives customers something to look at while they wait for their turn with the budtender. Sometimes waiting can be hard but having something to concentrate on will help the time pass faster.
2. Easier to update than other methods.
When considering in store options for informing your customers about what you have available, think about how much time and energy are involved when changes are needed. Other options for informing customers when they are in store include things like chalkboards or paper menus. How much work would go into updating those items on a daily basis?
3. More opportunities for marketing and branding.
Digital Menu boards provide another great avenue for including branding and marketing messages. Since they are highly customizable, many different methods could be used to catch and keep the customer’s attention.
4. Changes to the menu can be implemented quickly.
A digital menu board can generally be updated very quickly, saving you time needed for other important tasks. A few quick clicks and your updates are done!
5. Some can integrate with your POS.
Some digital menu board options will integrate with your POS system. This makes updating inventory a breeze and save loads of time since it will update to show your live inventory.
26 U.S. Code Section 280E is the federal statute that states that a business engaging in the trafficking of a Schedule I or II controlled substance such as cannabis is barred from taking tax deductions or credits. Basically, cannabis entrepreneurs must pay taxes on all of their revenue without the benefit of being able to use business expenses to reduce their taxable income.
Cost of Goods Sold
When Congress passed Section 280E, it added an exclusion that allowed a deduction for the cost of goods sold even where the goods are illegal under federal law. “Costs of goods sold” (COGS) essentially means inventory costs, including the cost of the product, the cost to ship it in and any directly related expenses.
Even though COGS are allowed, the IRS applies its definition more strictly to cannabis companies. For example, the use of tax changes that allow more indirect costs to be included in costs of goods sold is not allowed because those were made after Section 280E went into effect. This means that cannabis companies may not be able to use the same accounting methods as other businesses, which could result in less favorable treatment by the IRS.
Working around 280E
Accountants for cannabis companies are getting around Section 280E with smart business structuring by dividing the business into two separate companies. Mostly, this allows for better COGS tracking.
The first business is directly responsible for producing and distributing cannabis and files a tax return without the deductions barred by Section 280E while the second business holds any activities that are legal under federal law and would not trigger Section 280E. This might include care services, selling ancillary products or owning and managing the building that the cannabis business operates in. The second business files a tax return claiming all ordinary deductions.
The result is that the two companies pay fewer taxes than if they operated as a combined company entirely subject to Section 280E.
Is this loophole legal?
The two-business strategy has been upheld in federal court. The most notable case is CHAMP v. Commissioner.
In CHAMP and other cases, two cannabis-related businesses operated in close coordination — one with the federally illegal activities and one with the legal activities. These businesses worked with their tax and legal advisers to create a solid legal structure and then used immaculate record keeping to prove that they were operating as they stated. They had two clearly distinct businesses.
Don’t forget the states
Section 280E has created a clearer federal set of rules for cannabis businesses, but many states that have legalized marijuana are taking a different position than the federal government when it comes to tax deductions. Some states will even allow you to deduct your full business expenses, a benefit for entrepreneurs, but one that adds additional complications. Some states allow or require states to operate as non for profit organizations. Which has its own set of tax implications.
In short, Section 280E severely restricts what deductions cannabis companies may take as they must pay full income taxes. However, careful (and legal!) accounting can separate cannabis activities from unrestricted activities so that the taxpayer can claim some federal deductions. This is even before you consider state taxes and their unique deduction rules.
On Tuesday, September 24th, Massachusetts Governor, Charles D. Baker, issued a declaration stating that a public health emergency exists due to severe lung disease associated with “vaping”. As a result, they have banned the sale of all “vaping products” for four months.
Responding to the hundreds of vaping health concerns, governors in Michigan, New York and Rhode Island have also rapidly moved to ban flavored e-cigarettes or all vaping products. Officials from several other states are considering similar steps.
Though it is commendable that they are trying to address the so-called “Vape Crisis” the manner in which they have gone about it is poorly worded and ill-informed.
“WHEREAS, vaping products use an e-liquid that may contain nicotine, THC and/or cannabinoid oils, in addition to a combination of flavoring, propylene glycol, vegetable glycerin, and other ingredients and may also contain toxic chemicals such as f01maldehyde, acrolein, acrylonitrile, propylene oxide, crotonaldehyde and acetaldehyde, as well as metal particles such as nickel, lead, and chromium, which can be inhaled into the lungs;”
Any product intended for human consumption by inhalation regardless of nicotine content, whether for one-time use or reusable, that relies on vaporization or aerosolization, including but not limited to electronic cigarettes, electronic cigars, electronic cigarillos, electronic pipes, electronic vaping product delivery pens, hookah pens, and any other similar devices that rely on vaporization or aerosolization; and
Any component, part, or accessory of a product or device defined in subsection 1), even if sold separately.
Why is this a problem?
It is too general and confusing. The ban could be interpreted a number of different ways since one can “vape” marijuana flower and any marijuana concentrate.
The ban should focus on the additives which we know are causing the problem. It ignores the fact that many experts have already concluded through research that vaping is safer than smoking.
Fear Mongering – When considering the number of deaths caused by tobacco cigarets, pharmaceuticals or other consumer products, a small amount of people have become ill. The response does not match the scope of the concern.
Who benefits?
The “Illicit Market” – Where will customers and patients turn when they can’t get the products they rely on legally? This ban drives people to the non regulated or “street market” which is where subject matter experts believe the product is coming from.
“Big Pharmaceutical ” – Many patients use marijuana to help them get away from prescriptions and may be forced to go back if they can’t get what they need.
“Big Tobacco” – Consumers who vape natural herbs will end up turning back to tobacco and nicotine products.
The entire marijuana industry is negatively impacted by this ban. Legalization is still relatively new and is now threatened by the very general language in this ban.
Smoke shops don’t just sell marijuana paraphernalia. They sell a significant amount of vaping products and supplies and will be at risk without that income.
Medical Marijuana Patients who can’t or shouldn’t smoke often rely on vaping as an alternative. Patients will be forced to go without or resort to other methods to obtain needed medicine.
Consumers of both marijuana and nicotine will be unable to participate in methods that may have kept them cigarette free. As stated above, they will either have to go without or resort to other, possibly shifty, methods to obtain needed products.
What would we suggest?
We know that the illnesses have been linked to additives and not the act of vaping itself. As a result, we should ensure that vaping products are legalized, regulated and tested. We should warn consumers of the dangers of purchasing from an unlicensed source. Licensed businesses should be required to test their products and comply with bans on specific ingredients. More testing also needs to be done to identify the specific ingredient(s) causing the issue.
The cannabis industry has done a great job of implementing regulations surrounding quality controls. Seed to sale tracking, testing, and labeling requirements all contribute to consumer safety. The government should be looking at cannabis business solutions as a guide to researching and analyzing (understanding) the current vaping health concerns.
Once you have made the decision and subscribed to Adilas E-Commerce, you’ll need to know what to do next. Adilas E-Commerce is usually the simplest to set up of the 3 preferred e-commerce options available for Adilas POS users. Even though it is the simplest there are still areas in which care will need to be taken. The following information describes the areas that will need setup in order to display properly on your Adilas E-Commerce site.
Start with this great introductory video for an introduction to e-commerce set up.
E-commerce Main Settings
E-Commerce Main Settings are the settings used to control the primary e-commerce functionality of Adilas. In Adilas, locate them using the “Other” menu in the header. There are several videos available to describe the settings and get you started. In addition, each settings category has description as well as a video that explains that section. Each individual setting also has a thorough description of functionality as well as a visual aide. Watch the videos and read each description and then choose the settings that are appropriate for your e-commerce site.
Categories
Item categories are an important factor in deciding what will be shown on the web and how it will be displayed to the visitor. Make sure that the categories you want shown are set to “show on web”. There are also settings within each category for e-commerce display options, so read carefully.
Item settings
Each item that is displayed on the web will need to be set up to display correctly online. Not only will the parent item details need to be correct, but description fields and settings for online display will also need to be completed. You can enter information in the fields and then view the item on the web to experiment with where to put supporting details.
Sub inventory templates
Sub inventory attributes show item details that are specific to the package of inventory being sold. For instance, you have lozenges as an item but have different flavors. This may also be test results, THC, CBD or other batch or package specific attributes Setting up sub inventory attributes will allow the customer to choose which color they want. The sub inventory template allows you to set up collection of those details. Make sure any attributes you want to display on the web are set to “Show on web”, “Search on web”, and “Sort on web” when desired.
Parent attributes
Parent attributes are additional categories in which each item can be placed. They allow for further sorting and filtering functionality on your e-commerce site making it easier for a visitor to find what they are looking for. This may be sub categories such as brownies, cookies or wax. It may also be fixed information about an item that wont change batch by batch. Examples lineage include indica, sativa, hybrid or units of measurement 3.5g, 7g, 1oz, net weights, content ranges or other tags. The parent attributes can be used as tags for filtering in your online store.
There are many great challenges facing the cannabis industry. Because production and research have been limited for so long it has been difficult to explain the relationship between dried marijuana flower and yield of concentrate. As rules and regulations have been defined differently amongst multiple states it has become even more challenging to agree on what, if any, usable marijuana or concentrate weight limits should be applied. In this article we will look at how a few states are addressing the issue.
Physical equivalencies were calculated in two ways; a THC equivalency, and a physical production equivalency. Equivalencies were calculated using the popular concentrate and infused product manufacturing techniques, including butane hash oil, CO2 oil, ethanol, and water. Physical production equivalency is calculated by isolating the biomass inputs and determining a yield ratio of usable marijuana. Edibles, refers to the yield of usable marijuana used for edibles and is reported in milligrams. The THC methodology provides an equivalent amount of oil required to produce products with a specific amount of THC. The calculations were created using products based on recent state testing information. Table ES-1 shows equivalency factors for both methodologies by solvent type.
The physical equivalencies in Table ES-1 show that between 347 and 413 edibles of 10mg strength can be produced from an ounce of marijuana, depending on the solvent type and production method. For concentrates, between 3.10 and 5.50 grams, with average potency, of concentrate are equivalent to an ounce of flower marijuana.
The study published by CO also explores the different effects of inhaling concentrate compared to digesting concentrate. The study suggests limits based on a Pharmacokinetic understanding as well.
An important compliment to the physical THC relationships identified in this study, the pharmacological perspective. If the purpose of the equivalency legislation is to limit transactions or possession to a reasonable “dose” of concentrates and marijuana products then we must consider the medical effects..
California
Another common mistake the states have made is trying to set limits based on THC but not defining THC or not defining it properly. California defines “THC” as delta 9-tetrahydrocannabinol.
Cannabinoid content for cannabis and cannabis products in California must be included on either the primary or informational panel. For cannabis flower, cannabinoid content must be listed as a percentage. For cannabis products, cannabinoid content must be listed in milligrams and include delta-9 THC and CBD, at a minimum. However, the state does not note the difference between delta-9 THC and THCA (non activated THC). This could lead producers to oversell products or not report products that contain potentially psychoactive ingredients, although not activated unless heated.
For an example, §40315 regarding THC Concentration Limits says:
(a) An edible cannabis product shall not contain more than: (1) 10 milligrams THC per serving; and (2) 100 milligrams THC per package. (b) Notwithstanding subsection (a), a package containing an edible product that is an orally-dissolving product, such as sublingual lozenges or mouth strips, may contain up to 500 milligrams THC per package, if: (1) The cannabis product consists of discrete servings of no more than 10 milligrams THC per piece; (2) The cannabis product is labeled “FOR MEDICAL USE ONLY;” and (3) The cannabis product is only available for sale to a medicinal-use customer. (c) A topical cannabis product or a cannabis concentrate shall not contain more than 1,000 milligrams THC per package. (d) Notwithstanding subsection (c), a topical cannabis product or a cannabis concentrate may contain more than 1,000 milligrams THC per package, but not more than 2,000 milligrams THC per package, if the product is labeled “FOR MEDICAL USE ONLY” and is only available for sale to a medicinal-use customer.
What if a producer used oil that was not decarboxylated, but could still be edible (or smokable)? Would these limits still apply? Does THC mean only delta-9 THC or the combination of both? The industry has established a formula to calculate Max THC, although state regulators have yet to adopt the use of this formula. This would ensure if a product contains cannabis oils, that has not been decarboxylated, it is understood that if heated, could have psychoactive effects.
While CA offers limits for packaging, there are also limit to what a cannabis retailer can sell and what a consumer can possess in CA. An adult-use cannabis customer in CA may purchase the following in a single day from a licensed retailer:
Up to 28.5 grams of non-concentrated cannabis.
Up to 8 grams of concentrated cannabis, including concentrate contained in cannabis products.
Up to 6 immature cannabis plants.
Here, are we talking about 8 grams of oil or 8 grams of THC?
A medicinal cannabis customer with a physician’s recommendation may purchase the following in a single day from a licensed retailer:
Up to 8 ounces of medicinal cannabis in the form of dried mature flowers or the plant conversion.
Up to 12 immature cannabis plants.
An amount of medicinal cannabis consistent with the patient’s needs as recommended by a physician.
(i) All parts of any plant of the genus cannabis, from which the resin has not been extracted, whether growing or not, and the seeds of such THE plant. Marijuana does not include the mature stalks of such plant or the sterilized seed of such plant which is incapable of germination.
(ii) THE RESIN EXTRACTED FROM ANY PART OF A PLANT OF THE GENUS CANNABIS, AND EVERY COMPOUND, MANUFACTURE, SALT, DERIVATIVE, MIXTURE OR PREPARATION OF THE PLANT OR ITS SEEDS.
(iii) EVERY COMPOUND, MANUFACTURE, SALT, DERIVATIVE, MIXTURE OR PREPARATION OF THE RESIN OR TETRAHYDROCANNABINOL.
(b) INCLUDES PLANT MATERIAL FROM WHICH THE RESIN HAS NOT BEEN EXTRACTED.
(c) DOES NOT INCLUDE THE MATURE STALKS OF THE PLANT OR THE STERILIZED SEED OF THE PLANT THAT IS INCAPABLE OF GERMINATION.
And while most recently efforts have been made on the best way to regulate, not prohibit, concentrates, even the most recent changes to regulations have not addressed this complex issue .
Like most states AZ marijuana dispensary’s have both labeling requirements and sale limits. However, they have been even more vague in how much concentrate or marijuana edibles one can legally purchase. Arizona requires:
A. A dispensary shall ensure that medical marijuana provided by the dispensary to a qualifying patient or a designated caregiver is labeled with:
2. The amount, strain, and batch number of medical marijuana;
Arizona defines purchasing limits as two and one-half ounces of medical marijuana during any 14-calendar-day period. It is unclear how many edibles or grams of concentrate one can posses or purchase in AZ.
AZ does not currently require testing of product, although we expect that to change in the near future. While it is not uncommon to find THC and CBD content on product labels in Arizona, it is not technically required. The product such as an edible may list 250mg THC and 2.5 grams usable marijuana. 250mg does not = 2.5 grams. So, what is that the weight of? Most likely it is the weight of the oil or THC multiplied by the yield % (or an average yield %) of the original biomass source.
The state, the industry, the patients and the news have participated in many discussions regarding dry weight equivalents, however the topic remains unresolved. Product labels and amounts applied to limits appears inconsistent.
Oklahoma
The State of Oklahoma released emergency regulations in August 2018 to clarify key vocabulary. Interestingly their definition for concentrates specifies cannabinoids, although like most states, does not limit that to THC
“Marijuana” means all parts of a plant of the genus cannabis, whether growing or not; the seeds of a plant of that type; the resin extracted from a part of a plant of that type; and every compound, manufacture, salt, derivative, mixture, or preparation of a plant of that type or of its seeds or resin. “Marijuana” does not include the mature stalks of the plant or fiber produced from the stalks; oil or cake made from the seeds of the plant; or any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks, except the resin extracted from the mature stalks, fiber, oil or cake; the sterilized seed of the plant that is incapable of germination; or industrial hemp, from the plant Cannabis sativa L. and any part of such plant, whether growing or not, with a delta-9 tetrahydrocannabinol concentration of not more than three-tenths of one percent (0.3%) on a dry weight basis the same as the term that is defined in 63 O.S. § 2-101 .
“Medical marijuana concentrate” (“Concentrate”) means a substance obtained by separating cannabinoids from any part of the marijuana plant by physical or chemical means, so as to deliver a product with a cannabinoid concentration greater than the raw plant material from which it is derived. Categories of concentrate include water-based medical marijuana concentrate, food-based medical marijuana concentrate, solvent-based concentrate, and heat- or pressure-based medical marijuana concentrate as those terms are defined in the Oklahoma Medical Marijuana and Patient Protection Act, 63 O.S. § 427.1 et seq. “Medical marijuana product” means a product that contains cannabinoids that have been extracted from plant material or the resin therefrom by physical or chemical means and is intended for administration to a qualified licensed patient, including but not limited to concentrates, oils, tinctures, edibles, pills, topical forms, gels, creams, and other derivative forms, except that this term does not include live plant forms. “Medical marijuana waste” means
Both possession and purchase limits defined by OMMA.
A patient who has been issued and is in possession of an OMMA medical marijuana license is legally authorized to: (1) Consume marijuana legally; (2) Legally possess up to three (3) ounces (84.9 grams) of marijuana on their person; (3) Legally possess six mature marijuana plants; (4) Legally possess six seedling plants; (5) Legally possess (1) ounce (28.3 grams) of concentrated marijuana; (6) Legally possess seventy-two (72) ounces (2,037.6 grams) of edible marijuana; and (7) Legally possess up to eight (8) ounces (226.4 grams)of marijuana in their residence. These possession limits are cumulative and a licensed patient or caregiver may possess at one time the totality of the items listed in this Section.
Transaction limitations are identical, but do specify if a patient is under the age of 18 they are limited to once ounce of concentrate. It is unclear if 1 ounce or 72 ounces refers to the weights of the final product or if there are limits associated specifically with the weight of the cannabinoids. Assumably 72 ounces refers to the net weight of the product right?
Labeling requirements are simple reading:
Medical marijuana and medical marijuana product labels shall contain, at a minimum, the following information: (1) The Oklahoma Uniform Symbol in the manner and form prescribed by the Department; (2) THC potency; (3) Terpenoid potency; and (4) The statement, “This product has been tested for contaminants.” Labels for edible medical marijuana products shall also meet the requirements set forth in OAC 310:681-5-8.1.
Which reads:
(A) Name and address of the business; (B) Name of the food; (C) Net quantity or weight of contents; (D) Ingredients list; (E) Food allergen information; and (F) Nutrition labeling, if required under 21 CFR § 101.9. (3) In addition, principal display panels or information panels must contain: (A) List of cannabis ingredients; (B) The batch of marijuana; (C) The strain of marijuana (optional); (D) THC dosage in milligrams per unit; and (E) The lot code. (4) Nutrient content, health, qualified health and structure/function claims must comply with the Food and Drug Administration (“FDA”) Food Labeling Guide.
Massachusetts is also a particularly confusing state as they have separate methods for “medical” and “adult use” equivalency.
Adilas420 offer an online Massachusetts Responsible Vendor Course that explains in detail the differences between adult use and medical marijuana usable marijuana weights and dry weight equivalencies. MA new proposed regulations, discussed in this course, became more complex by defining new packaging and sales limits for THC.
Advice to the Goverments
If asked for my advice, I would suggest the state decides if limits will be based on the equivalency of usable marijuana weight (including terpenes and other plant material) AND/OR THC, but should keep them as separate equivalencies. A clear deffiniton of THC to include “active delta 9 THC” or non activated THCA in the regulations will help ensure consumer understanding and safety. If asked if any limit should be applied, I would pose the question: What are the goals of the limitations? Is the goal to try to prevent diversion, IE, if a dispensary were to issue too much people may give it away or sell it? Or is the goal to control how much psychoactive ingredients someone can purchase at once?
Also, knowing under the adult use model, one person could go to multiple dispensaries and purchase more and more product, and no customer record is required, what do these limits accomplish?
I am not suggesting no limits. I support limits of MAX THC content in a single edible or concentrate packaging. This helps to improve the consumer experience allowing them to better self control dosing and ensure consumer safety. While I can also see concerns with excessive packaging requirements having a high cost to businesses and the environment, we can all understand wanting to take safety precautions for consumers.
If the goal is to prevent black market sales, the best way to do that is to allow businesses to keep their prices low to compete with the black market operations. Allowing customers to purchase as much as they want, while paying tax, will regulate supply and demand. Seed to sale tracking, proper labeling and consumer education will help ensure consumer safety.
An international search has been initiated to identify a qualified organization to provide seed-to-sale tracking software for the country’s regulated marijuana program. According to the invitation to bid, the software will need to “capture data, collate, manage, store and produce reports on individual cannabis plants as they move through the supply chain from cultivation, retail, transportation, processing or research and development,”. Jamaica’s Cannabis Licensing Authority will accept bids until 3 p.m. local time on Sept. 25. Parties interested in accessing the bidding documents and participate in the tender for seed-to-sale software infrastructure are required to register.
Licenses issued
40 licenses have been issued of the 54 granted so far as of the end of July.
For cultivations, 26 licenses have been granted and 20 have been issued.
For processing, 6 licenses have been granted and 5 have been issued.
For retail, 16 licenses have been granted and 11 have been issued.
For transportation, 2 licenses have been granted and 1 issued.
For analytical services, no licenses have yet been granted or issued.
It is common knowledge that cannabis industry banking comes with many challenges in the United States. Because marijuana is still federally illegal, there are many costly banking hurdles for a cannabis business in the US to overcome. This not only affects the cannabis business but also the safety of the community.
What are the biggest banking challenges?
1. Major credit card companies and most banks don’t participate.
These large institutions would be in danger of losing vital federal insurance and so will usually cancel any account they suspect of having ties to the cannabis industry. An employee of a cannabis business or ancillary businesses are in just as much danger of having their account closed as the business itself.
2. Those that do charge very high fees to offset higher compliance costs.
These are generally smaller local banks and credit unions. They are forced to charge large fees because of the extreme amount of required compliance work that goes into maintaining these accounts. This can make it hard for a smaller business to be able to afford the services they need.
3. Lack of access to loans can stunt business growth.
Without access to loans a cannabis business is reliant on investors with deep pockets to help expand their business. This makes it extremely difficult for small businesses to get off the ground.
4. Cash transactions are the only option for many.
Businesses that can’t find or afford banking services are forced to operate in cash. Not only is this inconvenient but can be dangerous. It is not uncommon for a business owner to have to travel for hours with large amounts of cash, sometimes millions, just to pay their bills or taxes in person.
Is anything being done about this?
The Senate Committee on Banking, Housing, and Urban Affairs met last week to discuss cannabis industry banking challenges and the Safe Banking Act. The Safe Banking Act would allow banks to offer some services to cannabis businesses but also to those business’s employees. Though it is not federal legalization, it is a step in the right direction.
Oklahoma Medical Marijuana Regulations were amended during the 2019 legislative session and affect many areas of compliance. These changes are summarized below and described in detail on the OMMA website. Adilas420 has updated its Oklahoma marijuana SOP’s.
Changes currently in effect
Board Certification– SB 162 removed the requirement for physicians issuing recommendations to patients for medical marijuana to be board certified. This change aligns with language in HB 2612.
Patient and Caregiver Application Processing – SB 162 gave OMMA 14 business days to review and provide a response on patient and caregiver applications. Previously the requirement was 14 calendar days.
Waste Disposal – Section 3 of SB 882 authorizes businesses to destroy plant waste through any technique approved by the Department of Environmental Quality. SB 882 also provides that medical marijuana waste shall not be subject to the provisions of the Uniform Controlled and Dangerous Substances Act.
Changes that go into effect August 29, 2019
Changes for Patients
HB 2613 amends HB 2612 to authorize Podiatric physicians to recommend medical marijuana.
HB 2601 creates a new short-term, 60-day medical marijuana patient license.
HB 2612 sets a reduced application fee of $20.00 for 100% disabled veterans.
Changes for Applications and Renewals
Application Processing – HB 2601 and HB 2612 extend the timeline for review of business applications to 90 business days.
Renewal Applications – The online renewal system will be available starting August 29. Licenses will remain valid and active while the renewal is being processed, even if the renewal processing time goes beyond the expiration date of the license.
Residency Requirements – HB 2612 changes Oklahoma residency to mean Oklahoma residency for 2 years preceding the date of application, or 5 years of continuous Oklahoma residency during the 25 years preceding the date of application.
Certificate of Compliance – SB 1030 requires all business applicants to provide a certificate of compliance from relevant local government(s) that certifies the applicant is compliant.
Schools – HB 2612 defines “school” to include preschools for the purposes of the 1,000 feet requirement for dispensaries.
Changes for Business Compliance
Sales – HB 2612 authorizes licensed growers to sell seeds, flowers, or clones to other licensed growers. It also authorizes licensed dispensaries to sell to other licensed dispensaries.
Seed-to-Sale – HB 2612 requires the implementation of an electronic seed-to-sale inventory tracking system that will track the entire life-cycle of medical marijuana. It also requires business licensees to integrate their seed-to-sale tracking system with the seed-to-sale tracking system established by OMMA. Procurement of this system is following state agency procurement requirements prescribed by law, with an anticipated award in early 2020.
Testing – HB 2612 and SB 162 require growers and processors to utilize licensed laboratories to test harvest and product batches that are no greater than 10 pounds before any sale, transfer, or processing of medical marijuana. Owners of laboratories cannot have a direct or indirect beneficial ownership interest in any licensed dispensary, grower, or processor. Testing requirements are expanded to encompass all medical marijuana.
Packaging/labeling – HB 2612 and HB 2601 add packaging and labeling requirements.
Compliance – HB 2612 broadens OMMA inspection authority to include all commercial license types and authorizes inspections twice a year with prior notice and additional inspections when necessary due to violations.
Transporter ($2,500)—Standalone transportation licenses will be made available for the distribution and storage of medical marijuana.
Transporter Agent ($100)—Required for any agents, employees, officers, or owners of a transporter license holder in order to transport medical marijuana.
Testing Laboratory ($2,500)—Licenses a laboratory to perform testing on medical marijuana. This license is anticipated to be available by early 2020.
Education Facility ($500)—Licenses a nonprofit entity to provide training and education to individuals involved in the growing, processing, packaging, and testing of medical marijuana. This license is anticipated to be available by early 2020.
Short-Term Patient — A sixty (60) day license to be issued to any patient applicant who meets the requirements for a two (2) year license but whose physician recommendation is only valid for sixty (60) days. Fee will be set by the Department during the rules promulgation process.
Changes that go into effect November 1, 2019
SB 882 establishes waste facility licenses and permits as a new license category.
They go on to say that OMMA is pursuing a rapid implementation timeline to a newly formed licensing program that is only a year old. Since the start of accepting license applications in August 2018, the program continues to issue thousands of licenses each week, within an unprecedented turn-around time of 14 days. OMMA states they will have additional staff on board in late August when new laws become effective and they will continue to share updates on the program website, OMMA.ok.gov.
Cannabis E-Commerce is an essential part of the successful cannabis business. There are many things to consider when choosing a cannabis e-commerce option for your cannabis business such as how customers will locate and access your site and how your categories and items will appear. Understanding how the customer will use your site will help to maximize its effectiveness.
Managing a menu in multiple places including your POS, in store signage and popular marijuana search engines like Leafly and Weedmaps can be time consuming. An integrated online menu and shopping experience will save your cannabis business valuable time and money.
There are three options for businesses that use Adilas POS to allow for online menus and ordering. Each may have benefits and drawbacks for your cannabis business so it is important to thoroughly explore your options before making a decision.
Cannabis E-Commerce: 3 Adilas POS Options
1. Purchase AdilasWPShop which is a WordPress, Woo Commerce and Adilas integration. This requires a little more initial set up than option #2 but is pretty easy for anyone familiar with WordPress and Woo Commerce to configure. It allows the most options for customization and search engine optimization (seo) for cannabis businesses without starting from scratch.
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