Digital Cannabis Payments with Ian Rassman of Chosen Payments

I had the opportunity to sit down with Ian Rassman, the Deputy Director of LA NORML, Merchant Specialist at Chosen Payments, and a close member of the WebJoint family. In this interview, we talk about Ian’s experiences in the cannabis industry and where he thinks the future of cannabis payments will end up.

Ian Rassman, Deputy Director CA NORML
Ian Rassman, Deputy Director CA NORML

Q: What can you tell us about the origins of your interest in/experience with cannabis?

Ian: I grew up on the Big Island of Hawaii during the late 1970’s through the mid-80’s and I was definitely aware that it was around me with some regularity. We called it Pakalolo which is the Hawaiian slang word for cannabis. By the time I was in high school I knew many people who were using it, but in all my years in Hawaii I never tried it. Looking back, like most of America I was influenced by much of the media on TV during the failed War on Drugs; “This is your brain on drugs,” “Gateway drug,” that sort of thing. In the mid 90’s I was fortunate enough to get a job in Europe as a traveling software engineer. My boss said I could live anywhere I wanted as long as I had quick access to a large International airport. So, within weeks I moved from Los Angeles to Naarden, just outside of Amsterdam. One of my software partners was a retired police officer from the famous Red-Light District in Amsterdam. I learned a lot from him about Holland’s long standing, sensible, and non-criminal approach to cannabis. From my local Dutch friends, I came to understand more of the cultural and medical aspects surrounding cannabis during the several years that I lived there. By the time I returned to California in 1999, Proposition 215 had been enacted and California’s approach to cannabis was picking up speed. The culture was coming out of the closet and becoming more mainstream in California.  Fortunately, I had just moved within a 10-minute rollerblade of Venice Beach where dispensaries and script-writing doctors seemed to outnumber Starbucks.

Q: You’re involved with a lot of different things within the cannabis industry. Can you share with our readers what organizations you’re affiliated with and what you do?

Ian: I wear a few hats within the industry but I hadn’t originally set out with that as my plan. Going back a bit, in 2012 I received a patent for a software platform that automated communications between livery companies providing town car services. I became entrenched in the limousine industry and developed a relationship with Chosen Payments who was rising to become the dominant credit card processor for that industry. I honed my payment expertise in the limo industry, and rapidly expanded my client base out to other retail merchants and verticals such as bars, restaurants, attorneys, automotive, CPAs and plastic surgeons to name a few traditional businesses that frequently receive payment via credit cards.
In 2017, sensing the wave of impending legalization of recreational cannabis in California, I decided to go deep into the cannabis vertical. Not realizing how truly different the cannabis industry is when it comes to financial services, I was in for a quick awakening. Banking and payments for cannabis is a frustrating process for nearly every business in the industry. Every business owner has horror stories about having their banking or merchant services shut down, funds seized, or a myriad of other financial issues. My entrepreneurial instincts made me realize that I needed to spend more time and energy to help change the things that I thought needed addressing within the industry. I also felt it was important to volunteer my time and pay it forward to support the business community from which I expected to make a living. With its national effort to reform some of the banking issues we were all facing in the industry, NORML became that vehicle for me. I found that NORML’s mission aligned very well with my core values. I learned everything I could about consumer activism, safe access, social equity, expungement policy, employment protections, and education. I ramped up my time and effort within the organization and realized that Los Angeles, where I have lived for over 34 years, is a perfect microcosm of the industry as we are undoubtedly the largest cannabis-friendly city on the planet. With a mature medical marijuana market, a plethora of cannabis companies basing themselves in Southern California, a liberal government and a county population larger than 42 U.S. states, Los Angeles is where consumers, industry and policy makers come together to define how cannabis will become integrated into our communities. This is a great opportunity, and grave responsibility that I believe most Angelinos and policy makers take seriously. The War on Drugs was particularly fierce on our streets and our minority communities suffered from it. There is much work remaining to be done and I am extremely proud to be part of Los Angeles NORML.

Q: What problem does Chosen Payments solve for the cannabis industry? 

Ian: Retail cannabis merchants and cannabis delivery services have mostly operated in cash. Issues of storing, transporting, depositing, auditing, theft and safety are all amplified for CRBs operating heavily in cash. Chosen Payments provides Point Of Banking (POB) services to retailers and delivery services allowing them to accept safe, secure, auditable and compliant digital cannabis payments from their customers while also increasing the average ticket price per sale. Chosen Payments helps minimize cash and increase digital cannabis payments that fund directly to your bank account. For cannabis delivery services Chosen Payments provides 4G mobile terminals for secure, compliant digital cannabis payments.

Q: Cannabis delivery services are subject to robberies and other hazards on the field. How can digital payments make deliveries safer?

Ian: The new normal brings health and safety concerns to both customers and drivers alike. First and foremost, on everyone’s minds these days is the current COVID-19 pandemic. No one wants to touch cash anymore, so digital payments via a Cashless ATM with limited contact is a much safer alternative for everyone. Eliminating the cash also makes drivers less of a target for robberies. Mobile terminals providing digital payments can enable safe home delivery and curbside pickup. Cannabis payment processors have always been a shaky part of the cannabis industry. There are horror stories of accounts getting shut down and assets being frozen. How has Chosen Payments ensured the safety of their retail accounts? Well, if your bank throws you out for being a cannabis business, your merchant services account dies along with it. However, there was a time when some CRBs and processors, to get around restrictions put in place by the Card Brands (Visa/MC/Amex, etc.), would mis-represent who the merchant was by coding the dispensary as a “pharmacy” or a “florist.” Eventually it would become clear that there were no aspirins or roses being sold and that account would be shut down. Misrepresentation was a common contractual reason for closing a merchant services account. It should have been the responsibility of the processor to lead their customer down the road to compliant solutions, rather than the many work-arounds (crypto, blockchain, stored value, etc.) that exist to undermine the Card Brand policy of not accepting credit cards for cannabis. No matter how much everyone wants it, there are simply no air-miles for your cannabis purchases. Transparency is critical in this process. For our cannabis clients at Chosen Payments, we only utilize Point Of Banking (POB) where all transactions are PIN-based and through your ATM card. Our solution utilizes the ATM rails. In the simplest possible terms, a payment rail is any form of digital infrastructure that transfers money from one individual or business to another. These are a completely different set of payment rails than the ones owned and operated by the Card Brands. At this time, there is no Visa/MC/Amex for cannabis. 

Q: Can you give us a quick breakdown on the difference between ACH transactions and the cashless terminals Chosen Payments uses?

Ian: ACH payments are electronic payments that go through the Automated Clearing House (ACH) Network. Funds move from one bank account to another with the help of a centralized system that directs funds to their final destination. Most people are already familiar with ACH payments either from Direct Deposit from their employer or when they pay bills electronically from their checking account.  Customers need to know their bank Routing and Account numbers to transmit funds. The cashless ATM (point of banking) terminal supports PIN-based card transactions: ATM/debit cards. When the customer inserts their debit card, a digital transfer is initiated. This gives your customers the ability to pay with their cards at the point of sale, increasing customer throughput and average ticket price. The secure countertop and 4G mobile terminals that we use are easily updated with the latest software, and on the first day that the card brands allow for it, we will patch the terminals to accept those cards. Customers must have their card present and know their ATM PIN number to transmit funds.

Q: What are the benefits cannabis retailers can experience by using digital payments? Do customers spend more? 

Ian: Yes. Retailers typically experience increased average ticket price as compared to cash payments. Other benefits include:
  • Eliminating the liability of having cash at the counter.
  • Safe, Secure and Compliant.
  • No processing fees to your business.
  • Quick and easy approval process with only a cannabis license, a driver’s license, and a voided check. 

Q: What are 3 concerns that you have as the industry continues to grow?

Ian: I am concerned that we are not doing enough about expunging criminal records for non-violent cannabis convictions. We can’t leave a single person in prison for selling cannabis while our regional governments are handing out licenses to sell cannabis. I am concerned that we need to do more on social equity, especially here in Los Angeles. As well, we need expanded licensing for those social equity applicants and faster timelines on that approval process. I am concerned that the Federal Government has not taken more decisive action on legalization when 66% of Americans believe cannabis should be legalized, and only 32% oppose legalization. The last decade has seen a steady increase in support for legalization and the disparity between these numbers continues to widen. The path towards Federal legalization and de-scheduling (not re-scheduling) is critical for enabling additional banks and credit unions to determine their own risk assessment and willingness to bank CRBs, without the threat of being afoul of Federal KYC and AML issues.

Q: What are you excited to see as the California cannabis industry continues to evolve?

Ian: Again, one of the most exciting things is a better banking infrastructure surrounding cannabis. California has been proactive on this issue to protect the industry and in late 2019, regulators issued guidance to state-chartered financial institutions regarding banking relationships with CRBs as more banks and credit unions choose to bank the industry. This will be significant for everyone involved. Federal clarity would come with the passage of the Safe Banking Act, the MORE Act, or the STATES Act.  I am excited to see cannabis become more mainstream and start to shake off the harmful stereotypes, propaganda, and stigma directed at consumers for nearly 90 years and continue to haunt our nascent industry nationwide. I am excited to see the science pushing forward on this versatile plant so that we may better understand it and our own endocannabinoid system. I am also excited to see the potential of industrial hemp and look forward to seeing it replace some of the petroleum and other non-sustainable materials we currently use for plastics and building materials. Hemp can be made into paper, biofuels, food, energy storage, and thousands of other products. Hemp plants also help with water and soil purification, and I look forward to seeing industrial hemp become part of our global solution for climate change. 

Q: What are a few resources you can share with our audience? What are some of your favorite books, podcasts, software, etc. that have benefited your personal and professional growth in the industry?

Ian: Ha, well it’s funny to hear you ask that because actually WebJoint is one of my favorite social media companies to follow in the industry; I appreciate all of the social equity issues that you champion and shine a light on here in LA. You bring out the local stories and your media team produces top quality content. Beard Bros. Pharms publishes one of my favorite weekly newsletters with their take on all the latest cannabis news. My own California Cannabis Event Newsletter has been a lifesaver for my own time management to know which events I plan to attend and who I am going to see there. Some of the best opportunities for education come from our very active event scene in California with a few of my favorite locally repeating industry events being CannaGather, Blunt Talks, & SCCBIG. Great education also comes from our regional and local associations such as NORML, NCIA, ASA, NCAB, CCC, LPP, CCIA and many others. It is very important to support the associations that support our businesses.

Q: Lastly, where can our audience find you?

LinkedIn: https://www.linkedin.com/in/ianrassman Email: ian.rassman@chosenpayments.com www.chosenpayments.com www.lanorml.org
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Cannabis Delivery Customer Expectations with Melissa Stapley

WebJoint had the opportunity to sit down with Melissa Stapley, the founder of MJ Hybrid Solutions. After discovering a need for cannabis employee training, Melissa combined her passion for sales training and cannabis education to develop the MJ Hybrid Training System. With her 12 years of corporate sales experience and 5 years of cannabis industry expertise, MJ created a training platform for cannabis employees that is both scientifically accurate and helps employees better sell to customers. Her mission is to legitimize the cannabis industry through proper employee education and training. We are excited to partner with MJ Hybrid Solutions to build operation around the cannabis delivery customer.

 

Q: What can you tell us about the origins of your interest in/experience with cannabis?

Melissa: I joined the cannabis/CBD industry back in late 2014. After seeing the benefits of CBD on helping me get off of sleeping pills, I started educating myself and realized I needed to help educate others. I started working with CV Sciences, a CBD manufacturer as one of their first sales reps. Back then CBD was still so new so it was one of the most difficult sales jobs I’ve ever had. But I learned so much about the history of cannabis, the benefits and got a good taste of how people viewed cannabis and how to educate them based on their understanding.

Q: What inspired you to create MJHybrid Solutions as a training and education platform for cannabis operators?

Melissa: In 2016, I left CV sciences to go help build a sales team with another cannabis and CBD manufacturer. It was there that I really started working more with dispensaries and really noticed the lack of communication between the new cannabis consumer and these dispensaries as well as the lack of knowledge. I knew there was a huge need for training and development in this space. My background was heavily in sales and leadership and I absolutely loved training and developing others so I took that passion and combined it with my passion of cannabis education to develop the MJ Hybrid Training System. Since I got into this industry to help educate the world on cannabis I figured if I can take my knowledge and skill set and help train budtenders and other cannabis professionals on how to effectively sell cannabis while also educating them then I would be able to have a greater impact on educating and ending the stigma.

Q: What does MJHybrid do differently to ensure positive results and long-term growth for your clients?

Melissa: MJ Hybrid Solutions is not just a cannabis training platform, our goal is to ensure our clients get results and provide the tools and guides to be successful and implement the training. We also put a big focus on sales/customer service training. I am a big believer that you can have all the product knowledge in the world, but if you don’t know how to communicate or understand who you are speaking too then sharing that knowledge may be ineffective. I worked closely the first year with dispensaries, got behind the counter and listened and developed sales training content based on what I heard from the customer and what I saw was needed from the budtender to effectively sell cannabis. I also provide an implementation plan to really help businesses focus on the 3 areas to grow their business and set goals to achieve them. It is also important to make sure your team is engaged with the training so we provide tools to roll out the training in order to get the best results from it. 

cannabis delivery service customers experience

Q: From your experience, what do cannabis retailers – more specifically cannabis delivery services – underestimate/overlook when it comes to meeting and exceeding their customers’ expectations?

Melissa: I think they overlook the value of asking questions and listening to their customers, whether in person or on the phone. Especially with delivery services, when people call in to place an order, the rep will usually just assume the customer knows what they want and if the customer does ask a question about product, the rep tends to just list and talk about all the products they carry when what they should be doing is asking the customer questions to understand their needs and what they are really looking for. Most customers don’t know what they need or they choose a product based on what they saw or tried one time, so if the rep was trained effectively on how to ask questions and build rapport they would be able to guide the customer towards the best products for them which would build more confidence with the customer. Confident and empowered customers purchase more and spread the word! 

I think the lack of training and development plays a big role in this as many employers overlook the value of training front line employees, especially on effective communication. And many retailers/owners think that answering the customers questions is great customer service, when in reality we as the employees should be the ones asking questions and listening to our customers needs. When you focus on those small changes, you will yield huge results! 

Q: Can you explain the importance of a cannabis operator’s brand, staff, and company culture? How do these 3 factors work together to develop the customer experience?

Melissa: Having a solid brand and aligning your staff and company culture with that brand is extremely important. You want to create a place that people remember and can relate to and that starts with your brand. Making sure your staff aligns with your vision and values is crucial to keep your brand and culture consistent. When customers come back they come back for that experience and it needs to be consistent. People will purchase more because of the customer experience and that experience is created by your people, your brand and your culture. Stay consistent!

Q: How can cannabis business owners empower their own staff to succeed at their respective roles?

Melissa: Cannabis business owners can empower their staff in many ways. One, it’s important to take the time and build a relationship with them. Just like we train employees to effectively communicate and ask questions to get to know customers, owners and managers should be doing the same with employees. I always say People are loyal to People and when employees feel heard and valued they will work harder and be more engaged. Be open with them, get them involved in processes. People like to feel like their role matters so asking for feedback and getting input from them will empower them. Do regular 1 on 1’s with the staff to see how they are doing, do team building with the whole team monthly and always thank them and remind them how important they are. 

Q: If there was one thing a cannabis operator can enact immediately to better their operations, what would you say that one ‘thing’ is?

Melissa: Focus on their employees and customers. It’s so easy as an operator to get caught up in inventory, products, compliance and regulations, etc. but really taking the time to focus first on the team and customers will really help create an amazing culture, happier employees which will increase sales and make day to day work better overall. When you overlook training and development, employee relationships and customer interaction as an owner you really hurt your business. Remember the 3 ways to grow your business- Get new customers, get them to purchase more and get customers to return. All 3 of these won’t happen if you aren’t focused on developing your employees and ensuring your customers’ are having an amazing experience each and every time.

Related Post: 5 Questions Customers Will Ask That Your Cannabis Delivery Service Staff Should be Able to Answer

Q: What are 3 concerns that you have as the industry continues to grow?

Melissa: Lack of professional development, education and liability as it relates to customers. So many consumers are still new to cannabis and it can be overwhelming. When employees aren’t properly trained or educated it can hurt consumers as they may not get what they really need, take too much and have a bad reaction. Also not understanding tolerance to THC can be a liability issue and as the industry grows I believe we will start to see more complaints and concerns over that because of the lack of proper training. 

Q: What are you excited to see as the California cannabis industry continues to evolve?

Melissa: For one, I am excited to see those who have paved the way for the industry continue to thrive and overcome the hurdles they have been facing. I know some have been hurt and hope to see those who crafted the way make it through the hurdles this year and come out strong. I am excited to see some changes with social equity as well and hope we can push for those who deserve it and help those who have been incarcerated. And I’m excited to see California continue to push out quality products and push for education to continue to end the stigma and get more consumers access to safe cannabis. 

Q: What are a few resources you can share with our audience? What are some of your favorite books, podcasts, software, etc. that have benefited your personal and professional growth in the industry?

Melissa:

Podcast: Entrepreneur on Fire, Hemp Revolution, Tony Robbins

Books: The Four Agreements, Good to Great (Jim Collins), Cannabis Revealed (Bonnie Goldstein).

Q: Lastly, where can our audience find you? 

Email: mj@mjhybridsolutions.com

www.mjhybridsolutions.com

Linkedin: Melissa MJ Stapley

Instagram: @mjhybridsolutions

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Cannabis Regulations in California and Elsewhere! (Overview)

Cannabis regulations for cultivation, distribution, sale, and use has received a lot of attention in recent years, in most parts of the world. There is a shift in the mindset, acceptability, and general perception of the cannabis plant in recent years. Somehow, this has helped to demystify some of the long-held beliefs stemming from the U.S. War on Drugs, effectively giving room for better assessment of its benefits to society.

How exactly has the playing field changed over the years in regards to cannabis regulations? In this article, we look at the various cannabis regulations that affect different stakeholders of the cannabis industry.

General Overview

At the international platform, cannabis possession, cultivation, and supply are only allowed for medical use and scientific research. In this sense, on the world stage, generally, it is a crime to cultivate, possess, and supply cannabis. Many counties punish this crime by stringent prison terms. It was not until recently when several changes emerged on the perception and approach towards cannabis. The result of the move was an increase in the number of countries legalizing cannabis for both medical and recreational use.

Notably, though, this legalization often comes with strict guidelines on cultivation, supply, and personal consumption of cannabis. In this respect, therefore, in many places, cannabis is still not a commodity that one can access easily. 

In the United States, 11 States have legalized marijuana for recreational use, while 33 states have legalized it for medicinal purposes only. Other nations, including Canada, South Africa, Georgia, and Australia, have legalized marijuana either for medical, recreational uses, or both.

Cannabis Regulations in the United States

The USA stands out amongst many nations in its approach to regulation of cannabis use. At the Federal level, cannabis is still illegal, and there are severe penalties for trading, consumption, and possession of marijuana. 

Several states have now legalized either medical marijuana, recreational marijuana, or both. There is also a lot of diversity in the ways these states have enacted regulations on marijuana. There are specifications regarding cultivation, transportation, and even private possessions in homes across various states in the USA. Here is a highlight of multiple approaches given by just a few selected states.

California Cannabis Regulations

California became the first state to legalize cannabis use with Prop 215 back in 1996. Prop 64, which would permit the recreational sale and adult-use of cannabis, was approved by California voters in 2016. 

Prop 64 culminated in the signing of the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) by the then governor, Jerry Brown, on June 27, 2017. MAUCRSA created the general legal framework for the cannabis market in California. 

The bill created the Bureau of Cannabis Control (BCC), the lead agency responsible for licensing, regulation, and enforcement of laws for all cannabis-touching operators in the state. To supplement the BCC, the California Department of Public Health (CDPH) was commissioned to regulate manufacturers and the California Department of Food and Agriculture (CDFA) was made responsible for the oversight of cultivators and implementing the state’s track-and-trace system, METRC

To date, California remains one of the most dynamic cannabis markets – it’s expected to be a $7.7 billion market by 2022. Cannabis is legal to persons over 21 years old. The law prohibits possession of more than 28.5 grams of cannabis in the plant form and 8 grams in the form of concentrates. The law allows cannabis consumption in private property, although landlords and property owners can set their own rules regarding cannabis consumption. Additionally, California has been one of the few states to permit state-wide cannabis delivery. The laws in California provide a template for several other states.

Cannabis Regulations In International Markets

In all the places mentioned above and others, legality, especially in regards to commercial use, varies significantly. Here is a highlight of approaches adopted by different nations.

  • In Canada, users in Ontario are only allowed to purchase marijuana over a government-run online platform. Still, in Quebec, Canada, you can smoke cannabis wherever tobacco smoking takes place. Other provinces within Canada also have specified rules. In Europe, all national governments currently oppose cannabis legalization, mainly for recreational use. There are penalties for illegal supply. Similarly, within the European Union (EU), possession of cannabis for personal use is an offense. Nonetheless, in more than a third of the nations, a prison sentence is not an acceptable penalty.
  • In Spain, there is no penalty for growing or consuming cannabis privately. But cannabis sale is still prohibited. Similar to South Africa, you can only grow and possess small amounts of cannabis for personal use as long as you meet the age requirement.
  • In the Netherlands, officials tolerate cannabis sale in shops as long as it follows specific guidelines. It is an illegal activity but not necessarily punishable. In many jurisdictions, discussions into the legalization of cannabis are at advanced stages. One can easily buy various edible twisted extracts from reputable retailers.  

 

Effects on the Social Set-Up

Statistics indicate that there are more than two million Americans under incarceration. Although it is hard to determine the exact number of people held over marijuana-related cases, in 2018, about 47.5 percent of federal prisoners (81,900) were serving a drug-related sentence.

In another report, out of 20,000 drug convictions in 2017, only 92 related to marijuana. One argument has been that most of these convictions related to minor possession of marijuana and not to trafficking or violent acts. Yet, they have a significant impact on society.

Fortunately, with the increased pace of legalization across states, more government entities are looking to amend the injustices from the past. With more states legalizing, we begin to see more licensing programs centered on social equity (giving communities affected by the War on Drugs an opportunity to be stakeholders in the legal cannabis industry) and the mass expungement of non-violent drug offenders and their records. For example, Illinois’ governor just expunged 11,000 non-violent, cannabis-related drug offenses upon the state’s legalization in 2020. 

Conclusion

Cannabis regulation, especially in older democracies, is a discussion that dates back almost a century now. In the last two decades or so, there has been a significant shift and rethinking the existing laws related to cannabis possession, growth, and distribution. Nowadays to buy cannabis seeds online, one can browse the net and choose among a plethora of strains. 

With the revelation that cannabis-based products such as a CBD have positive impacts on human health, more changes will undoubtedly come to effect going forward. At the global stage, it is clear that there is a need for a better approach to harmonize regulations passed in different jurisdictions to make them relevant across the world.

Disclaimer

The materials made available in this blog were are for informational purposes only and not for the purpose of providing legal advice. You should contact your cannabis attorney to obtain advice with respect to any particular issue or problem.

This article was written as a guest post/collaboration with Cannabis2Biz.

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What is Los Angeles’s Cannabis Social Equity Program?

LA’s Social Equity Program

The explosion of cannabis and cbd marketplaces with increasing legalization led to the implementation of social equity programs to ensure communities that have been disproportionately affected by the War on Drugs have the opportunity to become stakeholders in the legal cannabis market. The enforcement of cannabis laws and its criminalization has harshly impacted people from minority communities and low-income earners for a long time. 

To address these issues around cannabis, LA is developing and enforcing new cannabis policies under LA’s Social Equity Program. This program aims to create a fair and equitable cannabis landscape to provide opportunities to individuals from communities disproportionately affected by the War on Drugs.

Read on to discover more crucial information about how this program works and who qualifies for social equity.

What Is LA’s Social Equity Program?

The main goal of this program is to reduce inequalities facing marginalized communities and promoting equitable opportunities in the cannabis industry. It will create better life outcomes for victims of the war on drugs and allow the city government to offer assistance through funding, licensing and physical space. Moreover, it gives the opportunity for those affected to participate in a booming cannabis market – allowing them to own retail premises to sell cannabis products like: flowers, edibles, concentrates, cbd pills, etc. However, there are strict requirements that cannabis business owners and distributors should meet to qualify.

Benefits of LA’s Social Equity Program

The launch of the Social Equity Program comes with many benefits to those who qualify. The City is set to issue about 300 cannabis retail licenses to social equity beneficiaries. Here is what you may enjoy if you are eligible:

•Priority processing

•Verification of your qualification without site verification

•Training through an incubator

•Help with your licensing, and business compliance 

•Fee waiver

•Access to funds

What Are the Qualifications for LA’s Social Equity Program?

Based on the factors influencing the groups of people most affected by the previous cannabis laws, the city of LA has come up with three requirements. 

Here are the requirements that can qualify you for the social equity program. 

Tier 1: Low income and prior California Arrest or Conviction

According to LAMC Sec. 104.20, any income that is 80% or below the City’s Area Median Income qualifies as low income. For the years 2017 and 2018, that is approximately less than $45,644 in gross or total income. To prove low income status, you need to provide a federal tax return from 2017 or 2018 reflecting low income or proof of eligibility for General Assistance, Food Stamps, Medical/CALWORKs or Supplemental Security Income or Social Security Disability (SSI/SSDI). 

  • The second part of this requirement means that those who qualify need to have involved themselves in the cultivation, manufacture, use, possession, and sale of marijuana, leading to arrest or convection before November 8, 2016.

OR

Low Income and cumulatively lived for at least 5 years in a Disproportionately Impacted Area

These zip codes are for areas that qualify: 90003, 90062, 90057, 90037, 90001, 90061, 90008, 90059, 90011, 90016, 90002, 90021, 90014, 90044, 90021, 90037, 90043, 90058, 90033, 90027.

Tier 2To qualify for the program, you need to own more than a 33.33% equity share of the business that will benefit if you get the license. And the proof of:

  • Low Income with not less than 5 years of cumulative residence in qualifying area: 

OR

  • Not less than 10 years of cumulative residency in a qualifying area.

Tier 3:

A Tier 3 candidate has to sign a Social Equity Agreement with the City of LA to provide property, capital, licensing and compliance support for a duration of 3 years to individuals who qualify for Tier 1, and business, licensing and compliance support to for a period of 3 years to individuals who meet Tier 2 requirements.

Tier 3 applicants have to give Tier 1 candidates access to the property without rent charges and with prorated utilities for not less than 3 years in a plan in line with LAMC Sec. 104.20(e)

Related Post: Cannabis Regulations in California and Elsewhere! (Overview)

Conclusion

The new era of legal cannabis in California comes with lots of benefits. The new policies will open amazing business opportunities and create employment for many people. However, many cannabis users are still yet to enjoy the benefits resulting from cannabis legalization equally. This includes people from marginalized and low-income communities still fighting the repercussions of the War on Drugs. 

To bridge the gap and empower equal opportunities, the city of LA created the Social Equity Program. This program offers support and assistance to people affected by the harsh cannabis laws previously.

Disclaimer

The materials made available in this blog were are for informational purposes only and not for the purpose of providing legal advice. You should contact your cannabis attorney to obtain advice with respect to any particular issue or problem.

This article was written as a guest post/collaboration with Cannabis2Biz.

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Connecting Cannabis: Craig and Marc Wasserman (Pot Brothers at Law)

On this episode of Connecting Cannabis, Craig and Marc Wasserman, Founders of Pot Brothers at Law, join Hilart “Art” Abrahamian (COO, WebJoint) for a conversation on the nation’s cannabis vaping epidemic, going viral with their “Shut the Fuck Up” campaign, and licensing/regulations in California’s market. The Pot Brothers at Law seemingly blew up overnight with over 400 million views.  You can view the entire interview here!

Connecting Cannabis – Pot Brothers at Law – Chapter Guide:

Viral Success – 1:25
Law Background – 2:28
Transitioning into Cannabis – 03:23
Trademarking STFU – 08:20
Going Viral – 11:20
Typical Clients – 14:57
Do regulations kill small business? – 16:04
Evolution of Retail – 19:17
Instagram Speed Round – 20:53
When a Delivery Driver Gets pulled over – 33:38
The Illicit Market – 37:40
Consumers Against Unlicensed Retailers – 39:41
Licensing Fees – 40:19
280E & Taxes – 41:35
The Vaping Epidemic – 44:08
Fighting Against the Illicit Market – 47:21
Cannabis in Orange County – 48:44
Social Equity – 51:09
Process of Applying as a Social Equity Candidate – 52:42
Improving the Social Equity Program – 53:43
Improving Cannabis Policy – 55:14
The Famous Script – 57:33

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The Employees that Drive Cannabis Brands with ForceBrands’ Founder Josh Wand

WebJoint had the privilege of interviewing Josh Wand, Founder and Chief Executive Officer (CEO) of ForceBrands. ForceBrands is a New York-based recruiting firm for cannabis brands of all sizes. HerbForce, the cannabis division of ForceBrands, connects cannabis companies with talented job-seekers who specialize in sales, marketing, finance, operations, and HR roles. HerbForce’s goal: to supply fast-growing cannabis companies with the talent they need to building meaningful brands and drive scalable operations.

 

ForceBrands CEO, Josh Wand

 

What inspired the idea of creating ForceBrands and more specifically, HerbForce, to address recruitment needs within the cannabis industry?

Josh: ForceBrands was born out of my natural passion for the beverage industry and my interest in connecting people. In the early 2000s, I ran a rum company, an experience that helped me develop deep industry relationships and taught me how to hire a team, manage business development, and run a national sales and distribution network. The idea for ForceBrands came about in 2006 when I was promoting our rum brand at the South Beach Food and Wine Festival in Miami. Someone from a champagne company approached me and asked if I knew of any Regional Sales Managers. A few minutes later, someone from a different champagne company expressed his interest in changing jobs. And suddenly my professional matchmaking career was born. At the time, high-quality recruiting for the beverage industry didn’t exist. In 2007, we launched BevForce. Following its success, other forces emerged. We expanded into packaged food with FoodForce and then into beauty and personal care with BeautyForce. Most recently, we’ve formalized several years of work in cannabis with the official launch of HerbForce, which was a natural evolution of our service offerings.

How would you say HerbForce differentiates itself from other recruitment firms addressing staffing needs in the cannabis industry? Essentially, what does your company do differently to ensure high quality talent for cannabis brands?

Josh: At ForceBrands, we’re in the people business. We see recruiting through a human lens and engage with job seekers and employers in a real way — we get to know them personally, understanding that each individual is as unique as the needs of an organization. All of ForceBrands’ industry-specific divisions collaborate with clients as friends and trusted colleagues in the pursuit of transformational goals. HerbForce is unique in that cannabis is a whole new industry where hiring playbooks do not yet exist. We’ve found that there are countless natural synergies between cannabis and other CPG sectors. It’s an exciting opportunity for us to leverage more than a decade of experience and our incredibly powerful community to build the cannabis teams of tomorrow.

What are some lessons you’ve learned while building your own brand/staffing your own company that you’ve shared with your clients?

Josh: Culture is key. Building great teams goes beyond matching skill sets with job descriptions and responsibilities. I’m proud of the culture we’ve built at ForceBrands — one that is centered around our core values: people first, integrity, collaborative culture, progressive, purposeful. I always recommend to the teams that we’ve helped build to go beyond filling a role — hire candidates who fit the role not just professionally, but personally and culturally as well. 

Considering ForceBrands has staffed businesses in multiple industries, what industry would you say cannabis brands can learn from the most? (Food, Bev, Beauty, overall CPG businesses?)

Josh: There are a lot of natural synergies between cannabis and the beverage alcohol world as they’re both highly regulated industries. Even though alcohol is federally legal in the U.S., the laws are complex as they vary at the state and local levels. Cannabis brands should look to the bev alc industry and to those with experience cooperating with legal restrictions as determined by federal, state, and local laws.

How important is the connection between your brand, your staff, and your company culture when building a team for your cannabis brand?

Josh: There is no one-size-fits-all approach to team building. Understanding that each organization is uniquely different helps us approach each brand differently. Cannabis is a new industry, and even though there is not yet a hiring playbook for this sector, we’re able to take what we’ve done building beverage, food, and beauty brands and apply that directly to cannabis companies.

Related Post:  3 Hiring Mistakes to Avoid for Your Cannabis Delivery

Scenario: It’s 2019 in California and you’re building a cannabis brand currently with a team of one (you). What are the first 3 positions you would hire? Where would you start looking for these people (what industry)? How much would you expect to invest in the hiring process?

Josh: The first key hires I would make would be Head of Operations, Head of Finance, Head of Revenue, and Head of Field Marketing. I realize that’s four positions but they are all incredibly valuable for getting a cannabis brand off the ground. And when it comes to sourcing talent for these roles, I would look toward the CPG industry as cannabis essentially is a consumer good. I would invest a lot in taking the time to find the right people — not just the people who meet the desired skill sets necessary to succeed.  

What should cannabis brands look for in their applicants? What are a few common mistakes brands make when hiring?

Josh: Hiring is about looking at the whole picture. As mentioned above, brands should consider looking at their hiring strategy beyond just filling roles. It takes patience to find the right fit. It’s not an easy feat and there are no shortcuts when it comes to making great hires. Brands that take the time to hire right will be rewarded with long-term growth and success.

Where do you see the future of staffing in the cannabis industry going? What trends should brands pay attention to ensure they have a top tier team building their brand?

Josh: Cannabis is already an incredibly crowded and competitive space, and I don’t see its momentum slowing down anytime soon. When it comes to building top teams, employers should look to their benefits and compensation packages to attract and retain top talent. ForceBrands’ 2019 Talent Market Report, a comprehensive analysis of benefits and compensation packages across CPG, found that the cannabis sector was among the most competitive, with average annual raises the highest across CPG at 14 percent. When it comes to benefits, paid leave policies have gained in popularity in recent years and as a result, we’re seeing cannabis companies offer more extensive leave policies than established businesses across other industries. Cannabis brands should pay attention to their employee offerings to ensure that they’re building the best teams possible.

What are a few overlooked positions brands should consider implementing into their business to ensure the success of their business?

Josh: Some key overlooked positions are Head of Operations and Head of Finance. Both of these roles are critical to ensuring the business has what it needs to succeed.

What are some of your favorite resources (books, podcasts, software, etc.) that you can share with our audience that has benefited your personal and professional growth in this industry?

Josh: I’m all about additional resources that help personal and professional growth. I highly recommend reading “Delivering Happiness: A Path to Profits, Passion, and Purpose” by Tony Hsieh and “The Alchemist” by  Paulo Coelho. I also love the Peptalks app that offers daily motivation.

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4 Signs You’re Using the Wrong Cannabis Point-of-Sale for Your Delivery

Every cannabis point-of-sale software is different.

There are many different cannabis point-of-sale software systems out on the market right now. Each comes with its own advantages and disadvantages depending on the type of retail business you operate. 

Your cannabis point-of-sale system is the technological foundation for your business, so this is a big decision you need to get right. 

Ask yourself, are you a delivery service? Yes. Is there a chance you are using a dispensary point-of-sale software for your delivery operation? Yes. Is that a problem? Absolutely.

Cannabis delivery services have unique pain points, requiring solutions that are often missing in your typical dispensary point-of-sale system. 

If you’re using a point-of-sale system that exhibits these 4 signs, it’s time to switch to a cannabis delivery point-of-sale software system.

Related: 7 Questions to Ask When Purchasing Software for Your Cannabis Delivery Service

I. Your cannabis point-of-sale lacks a METRC integration!

cannabis delivery software - metrc integration

METRC is the chosen platform for California’s CCTT.

METRC is the State of California’s seed-to-sale, track-and-trace system. All businesses in the cannabis industry need to utilize METRC in order to track seeds, clones, individual cannabis products, and batches from the time in which they are conceived to the time in which a consumer buys them. Your point-of-sale system should automatically report to METRC. This means that partnering with a point-of-sale that lacks METRC certification and does not have the capabilities of automatically tracking batches as they enter your inventory is not maximizing the potential of your business.

Let’s be clear here—keeping a culture of compliance is everything in a regulated market. METRC integration is absolutely necessary. Without METRC integration, the State of California‘s Bureau of Cannabis Control has no way of ensuring that you are keeping track of all sales and has no way of acknowledging that your product has been laboratory tested per BCC regulations. Make sure that when you are partnering with a point-of-sale system, that METRC certification is fulfilled.

Related: A Definitive Guide to Compliance – California Dispensaries 

II. Your cannabis point-of-sale is not capable of automatic delivery dispatching.

Two-communication and automated dispatch is made easy by using our Fleet App.

Delivery services are mandated per the BCC to have automated GPS location on each and every single delivery vehicle that is utilized within the business. What this means is that all drivers must be able to be tracked in real-time and the location of each driver to be recorded as deliveries are completed. That’s not only to keep you compliant, but is an accurate way to ensure that the safety of your drivers and customers is well taken care of. The cannabis industry is certainly a dangerous one considering the fact that cash is the only method of payment that is technically allowed currently.

With the lack of central banking systems available for the cannabis industry in the state of California, delivery services are forced to not only accept large amounts of cash from consumers but also carry this large amount of cash with them throughout the duration of their delivery. 

Making sure that you partner with a point-of-sale system that keeps you up-to-date with your dispatch limitations and dispatch requirements could make a world of difference to the success of your cannabis delivery service.

Related: 4 Things to Look for in a Cannabis Accounting Firm

III. Your cannabis point-of-sale lacks proper delivery inventory management – big problem!

A sleek & intuitive back-end makes inventory management a breeze!

Poor inventory management is one way to make sure that your California cannabis delivery service fails to operate at its maximum potential. Inventory management is the most important aspect of delivery service success.

Not only must you manage your inventory across your facilities, you need to manage the inventory across all of your delivery drivers! This is a recipe for disaster — if you have 10 drivers on the field and you need to manage all the inventory they carry in their driver kits simultaneously, you’re bound to make an error. (An error that can cost you tons of cash in compliance violations, by the way.) 

As a cannabis delivery service, make sure the point-of-sale software you choose supports the following with regard to inventory management:

  • Driver Kit Management & Templates
  • The Centralized Inventory Model (Pizza Delivery Model)
  • The Kit Model (Ice Cream Truck Model)
  • Hybrid Model 
  • Splitting/Moving Packages
  • Vehicle Management
  • Comprehensive Inventory Reconciliation

All these tools are essential to ensure you’re accurately tracking each and every product that flows through your operation. Being able to account for all of your inventory and produce inventory reports on demand is crucial, especially when state authorities audit your business. If your existing point-of-sale is lacking these tools, you will experience bottlenecks and slower delivery times. 

Related: 4 Obligations of a California Cannabis Delivery Service Inventory Manager

IV. Your cannabis point-of-sale has confusing & inaccurate sales reports!

Sales reports don’t have to complicate your California cannabis delivery service.

What’s the point of partnering with a point-of-sale system if you are not getting the mandatory analytics and necessary tools that are needed to successfully run your business in an optimal way? With this being said, it’s ultimately up to you as to which analytics and metrics are the most important to track for your California cannabis delivery service, but basic reports such as daily sales reports, tax reports, inventory & staff management, and performance reports and number of customers Serviced on a daily basis, are all examples of reports that can shift and optimize the operations of your delivery service.

Partnering with a point-of-sale system that automatically generates these reports for you at the click of a button instead of manually entering CSV data eliminates the possibility of costly errors. Make sure that your point-of-sale system can generate these reports and offer various options for illustrated reports. Such illustrations and forms of reports include, but are not limited to: bar graphs, pie charts, and bell curves. These reports should be easy to understand, aesthetically pleasing and ultimately give you any in-depth look at your day-to-day operations.

V. You can’t Geofence or create delivery zones.

What is Geofencing? Why does it matter to delivery services? Well, geofencing is being able to draw a digital zone on a map. It matters to delivery services because, with geofencing, you can create custom drawn delivery zones. This allows your drivers to be especially efficient. Implementing delivery zones makes for incredible customer experience as well. With zones, the products your customers see on your website are always available for immediate delivery.

Having the ability to produce delivery zones streamlines delivery logistics. You’ll always know who is assigned where and your point-of-sale will always know which driver to send the order to. This is a huge time saver for your business. You can expect to double your operational efficiency with the automation benefits of this kind of feature. Be sure your existing point-of-sale has this feature. Otherwise, it’s time to switch!

It’s ultimately up to you!

Choosing a point-of-sale partner to use for your California cannabis delivery service is no easy task. If you are partnered up with a delivery service point-of-sale that doesn’t include the features listed above, you might want to reconsider the method in which you are processing sales. It’s important to note that all-in-one cannabis solutions for delivery services do exist. WebJoint is one of those solutions. 

Still wondering why you should switch? 

Find your answers here.

Related: The Future of Cannabis Banking by Aviva Spectrum

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