This is The Green Letter, a newsletter from Practical Effects featuring voices, headlines, and notes from the cannabis industry. In each issue we feature cutting edge products, innovating brands, and thought leaders with unique perspectives about the cannabis marketplace.

In this Letter, changes are coming to cannabis regulation in Maine, Bud Wakker makes waves at the CWCB Expo in New York, and Jaime Lyn Soares speaks about what makes bookkeeping for cannabis businesses both a risk and an exciting challenge.

Maine Legislature Moves to Reconcile Regulatory Conflicts

Regulatory changes are coming this summer to Maine that will make shopping for cannabis similar to shopping for alcohol. A new law sponsored by farmer and Democrat Senator Craig Hickman, the first black lawmaker to serve in both chambers of the Maine Legislature, aims to reconcile conflicting state statutes and recognize cannabis as a less dangerous substance.

For cannabis operators, some of the most exciting changes include eliminating the requirement for customers to show identification at the door and the allowing of samples. In addition to changes this spring that eased requirements for packaging of products like gummies, these reforms are expected to make cannabis business in Maine more seamless for both operators and consumers.

Regulatory Debate in Maine About Testing Requirements for Medical Marijuana

Also out of northern New England, Marijuana Moment reports that public health advocates are pushing for stricter testing requirements for producers of medical cannabis products in Maine. Currently, the state has no mandate for lab testing of products manufactured for medical purposes. 

Lawmakers and public health experts see consumer protection regulations as crucial for reducing stigma and building trust in the cannabis market. Opponents of new regulation believe mandatory testing could push small caregiver producers out of business, but understand the need for some reform to ensure quality and consistency.

Republicans in Congress Push Back on Biden Administration Marijuana Rescheduling

The House Appropriations Committee, led by Congressional Republicans, approved a bill this week to block marijuana rescheduling, setting up a major roadblock for the Biden administration plan to recognize cannabis as a drug with similar potency to alcohol.

This move was followed shortly thereafter with criticism of the administration’s review process. The House committee is directing the Whitehouse to provide clearer reasoning behind its decision to reschedule cannabis federally. “The Committee is concerned about reports of the mental health hazards of regular use of high-potency marijuana, particularly among adolescents,” the direction read, ordering “HHS Inspector General to complete a report on the 2023 marijuana scheduling review.”

Bud Wakker Disrupts Cannabis Grinders

Cannabis enthusiasts know traditional grinders can be notoriously difficult to clean, and because it isn’t possible to see into the grinding chamber in mainstream models, achieving the perfect consistency isn’t easy.

Bud Wakker made a splash at the CWCB Expo in New York City this spring with a bold and novel take on the traditional grinder. Billing the invention as “unbelievably easy to clean,” the Massachusetts-based brand solves the problems of consistency and cleaning in one simple product.

The new design, created by brothers and inventor duo Alan and Joel Aronie, appears to take inspiration from a pull-cord lawn mower and a food processor.

At the convention center, cannabis users couldn’t get enough of how easy the product is to use and clean, and retailer operators were eager to place orders for their shelves.

Jaime Lyn Soares Discusses Challenges & Excitement of Bookkeeping for Cannabis

Jaime Lyn Soares opened High Times Accounting with Claire Burkard in 2021 to help cannabis brands navigate a shifting regulatory landscape and keep in compliance with IRC Section 280E. 

Today, the firm offers the full scope of bookkeeping and accounting services to cannabis businesses, including payroll, accounts payable, accounts receivable, cash entries, and reconciliation, and sales tax.

High Times Accounting won the 2024 Boston Business Women Award for Best Accountant, a testament to the reputation Soares and Burkard have built not only with the 40 thousand member women’s business group, but with the cannabis community in New England. 

Below, Soares shares more about what makes High Times Accounting special, and what inspired her to serve the cannabis industry.

How did High Times Accounting get its start?

Initially, I didn't even want to get involved in cannabis at all. I was working with a client on the traditional side, and they also had a cannabis business. They were like, ‘we need you to come clean up our books. We need your help.’

I said alright: I’ll do it as a consultant, but I’m not doing it full time. I jumped in and helped them, and as I was learning it, I really enjoyed it because it was so different from the regular traditional side of bookkeeping. There were so many different laws and so many different things that we had to account for and watch for. In cannabis, you ask ‘Is this going to fly? Is the IRS going to allow you to take this deduction on your tax return?’ 

Every day was different, whereas in traditional accounting, it's all pretty much the same. Being able to do 280E and help clients stay compliant was one of the things that drew me into it.

At that point, Claire Burkard and I decided to open up High Times Accounting and focus solely on cannabis.

What makes accounting in cannabis different from traditional accounting?

It’s 280E, and making sure that you are classifying and allocating appropriately towards your tax return. 

In cannabis, you have everything that a normal traditional company has – bills, payroll – but there are some things that you cannot write off. It's just not allowed.

The IRS does not allow you to write off half of the stuff that you should be able to write off as a business, because it's still an illegal substance for them. Unfortunately, until that changes, there are a lot of different things that you have to keep your eyes open for on taxes.

I'm in Massachusetts, and Massachusetts has a very strict law when it comes to the different taxes that each town has to charge for any type of cannabis use – adult recreational use or medical. You have to be able to understand those differences, be able to calculate your sales tax, and make sure that everything ties out. Otherwise, you're open to the CCC [Cannabis Control Commission] coming in and shutting you down.

Would you say you view accounting in cannabis as an exciting challenge?

We do view it as an exciting challenge. It's always something new and different. As soon as they let go of one rule, another rule comes out. 

Five years ago, you had to handwrite your checks. It all had to be paper. You had to go to the bank and make your deposit. Now you can do wires, where you couldn't before.

You have to be able to adapt, and every state is different. Everything's different.

What is your greatest success story helping clients navigate this landscape?

One of my favorite success stories is from a client we were working with who ultimately decided they wanted to bring somebody on full time in-person to do their bookkeeping.

They ended up leaving me, but asking questions on a consulting basis. That lasted maybe seven or eight months, and then the person they had hired called me and said, ‘We have an audit. I need your help.’

When I got called back into it and I dove into the books, I saw that they had made an absolute nightmare of those books.

Facing down an audit, we had to restart from scratch, which I had already done once and now had to do again. 

In the cannabis industry, audits can last six to nine months. What I'm most proud of is that when they had an audit with the State of Massachusetts, we got ready, we converted the books – changed everything and fixed it up – and we wrapped up the audit in 90 days. 

Even the auditor said they had never seen stuff presented as quickly as this, and altogether we were able to save our client $30,000.

Facing these sorts of challenges, what makes High Times Accounting special?

We are dedicated to making sure that clients get the best tax write off, and also making sure that we are following the rules so that there is no risk to the clients. But we are not just your bookkeeper. We become a partner with you, and we become part of the team. 

W​​e're not just numbers, debits and credits. We dive into your company and we make sure that we try to help out as much as we can.

If there are failures, we take the hit. When there are achievements, we celebrate those with you.

Cannabis is a network, so I love the deeper integration we can have into that network here.

Community News

Collaboration has always been a bright spot in the cannabis industry. The Green Letter aims to share positive brand stories, open job positions, and relevant notes from our community with our audience.

The Healing Rose & BudSuds CBD Soaps Exemplify Spirit of Collaboration

The Healing Rose notes that “we proudly partner with BudSuds, a woman-owned soapery in Westfield, MA hand-crafting artisan cold-process soaps with organic full-spectrum CBD extract from The Healing Rose.”

The two Massachusetts-based brands collaborate to produce topicals with certified organic CBD extracts. Read more about the partnership below:

Custom Cones USA Offers Category Growth Trends & Projections

Leading packaging producer Custom Cones USA recently released data backed by HeadSet projecting significant year over year forward growth in the preroll category. By their analysis, the company projects pre-rolls to account for 20% of total cannabis consumer spending by 2030. Today, the products make up nearly 15% of total sales, at $3 Billion.

Read more below about category growth drivers, and how infused pre-rolls are behind a trend towards premium demand.

5 Brands to Watch in New York After CWCBExpo

Marketing firm Practical Effects attended CWCBExpo in New York City this June, taking note of several brands driving excitement and change in the New York State cannabis market.

Read more below about Blaze Bags, Cottrell Paper, and others shaping the still-young New York cannabis industry.

Dutchie Hiring for Software Engineers

Leading cannabis technology company Dutchie has several open roles for software engineers. All posted positions are remote, focusing on critical mission-backed services to cannabis operators.

Have a story to share? Send us a note at [email protected]. Our line is open for tips, introductions, press releases and more.