{"id":9484,"date":"2021-01-26T12:16:32","date_gmt":"2021-01-26T11:16:32","guid":{"rendered":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/?p=9484"},"modified":"2021-01-26T12:16:32","modified_gmt":"2021-01-26T11:16:32","slug":"cannabis-fleets-booming-growth-growing-pains","status":"publish","type":"post","link":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/2021\/01\/26\/cannabis-fleets-booming-growth-growing-pains\/","title":{"rendered":"Cannabis Fleets: Booming Growth, Growing Pains"},"content":{"rendered":"<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\"><i><em>Photo courtesy of\u00a0Talaria Transportation.<\/em><\/i><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\"><b>Ari\u00a0Raptis,\u00a0founder\u00a0and CEO of Talaria, made his first cannabis\u00a0delivery with\u00a0a single employee on \u201c4\/20\u201d \u2014 April 20, 2018.\u00a0Today, Talaria moves $80 million a month in cannabis cash and expects its cash processing business to surpass $900 million in deposits by the end of 2020.\u00a0<\/b><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">Growing a business 600% over two financial quarters is normally highly improbable \u2014 but in the most disrupted economy since the Great Depression, that\u2019s exactly where Talaria, a medical marijuana transportation and logistics company, finds itself.\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">\u201c(The growth has) been a godsend, for our employees and our customers,\u201d says Ari\u00a0Raptis, Talaria\u2019s founder and CEO.\u00a0\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">In terms of cannabis supply chain logistics, Talaria does it all:\u00a0Its vans run\u00a0cannabis\u00a0products\u00a0from farms and warehouses to dispensaries and test labs. They transfer\u00a0cash\u00a0to banks\u00a0and\u00a0to deposit directly in the Federal Reserve.\u00a0\u201cWe\u2019re those gears, the invisible infrastructure of the supply chain,\u201d\u00a0Raptis\u00a0says.\u00a0\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">The\u00a0Philadelphia-based company, which recently opened facilities in Scranton, Pittsburgh, and Columbus, Ohio,\u00a0also offers an ATM service and a software suite for home deliveries in states that allow it.\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">Talaria handles product delivery from cultivators to over 220 dispensaries in 16 Northeast and Mid-Atlantic states, including newly opened Maryland.\u00a0Talaria\u00a0moves\u00a0$80 million a month in cannabis cash and expects its cash processing business to surpass $900 million in deposits by the end of 2020.\u00a0\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">The employee count is up to 150, which is\u00a0astounding considering that\u00a0Raptis\u00a0started the company with\u00a0a\u00a0single employee to make\u00a0the company\u2019s first delivery on \u201c4\/20\u201d \u2014 April 20, 2018.\u00a0\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">Nonetheless, that hockey stick trajectory\u00a0is not without strains. Hiring two to five new employees a week, \u201cWe can\u2019t hire them fast enough,\u201d\u00a0Raptis\u00a0says. \u201cWe\u2019re holding onto the reins of this crazy horse; it\u2019s taken us for a ride.\u201d\u00a0\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">Talaria\u2019s fleet of\u00a037\u00a0Mercedes Sprinter and Metris vans is putting 70,000 miles a year running two eight- to 10-hour shifts a day. The company had been buying four units a month, it\u2019s jumped to six a month recently.\u00a0\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">De-fleeting hasn\u2019t been part of the conversation yet. \u201cWe\u2019ll need to retire some of those vehicles soon, but we\u2019re not yet sure how,\u201d he says.\u00a0\u00a0<\/span><\/p>\n<h2 style=\"text-align: justify;\"><span style=\"color: #0000ff;\">Bumpy Ride\u00a0<\/span><\/h2>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">The\u00a0cannabis industry\u00a0has\u00a0been on a bumpy\u00a0ride during\u00a0the last five years of\u00a0legal expansion across\u00a012 states.\u00a0While\u00a0some\u00a0vendors\u00a0are\u00a0managing explosive growth, the same operational challenges remain \u2014 or have been exacerbated \u2014 since\u00a0Business Fleet\u2019s\u00a0article on\u00a0cannabis transportation and logistics\u00a0published\u00a0in\u00a0January 2019.\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">With federal legality nowhere in sight,\u00a0cannabis can\u2019t be transported across state lines.\u00a0Cannabis\u00a0companies\u00a0face a patchwork of state-by-state regulations,\u00a0making\u00a0it difficult\u00a0for multi-state operators\u00a0to achieve economies of scale.\u00a0\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">Transporters\u00a0must manage\u00a0distinct state ecosystems, with separate\u00a0mandated\u00a0compliance software, tracking methodologies, security requirements, transportation regulations, and cash processing models.\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">As\u00a0the mainstream banking industry\u00a0continues to shun cannabis, it\u2019s\u00a0still a cash business,\u00a0which\u00a0increases liability and\u00a0drives\u00a0insurance premiums\u00a0sky high.\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">In California,\u00a0the country\u2019s largest market,\u00a0taxes have increased yet again. As of Jan. 1, 2020, cannabis consumers saw their taxes jump about 30%, keeping marijuana\u2019s black market alive and well.\u00a0\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">\u201cWe&#8217;ve seen a lot of distributors go out of business,\u201d says\u00a0Todd Kleperis,\u00a0founder of\u00a0Hardcar, a secured logistics and transportation provider for the cannabis industry in California.\u00a0\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">Kleperis, who was interviewed for the previous\u00a0Business Fleet\u00a0article,\u00a0faults the overabundance of investors driven from the problematic Canadian market coupled with companies that overspent and tried to grow fast without the customer base to support them.\u00a0\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">\u201cThere\u00a0are\u00a0a lot of people who thought they could just jump into the space and burn through investor money,\u201d he says.\u00a0\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">Frustrated with the\u00a0limitation on liquidity\u00a0from mainstream banks,\u00a0Kleperis\u00a0recently\u00a0created\u00a0PayZel, a banking solutions platform that connects cannabis businesses with consenting banks educated on the intricacies of the industry. \u201cThe tagline (of\u00a0PayZel) is \u2018Forged out of\u00a0Frustration,\u2019\u201d he says.\u00a0\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">PayZel\u2019s\u00a0first transaction was\u00a0$67\u00a0million. The second was close to $100 million, the largest in the industry&#8217;s history.\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">Despite\u00a0the challenges,\u00a0Hardcar\u00a0has been able to grow its distribution network\u00a0in California\u00a0from two products to 16.\u00a0In terms of out-of-state growth,\u00a0Kleperis\u00a0is\u00a0looking into partnering with\u00a0companies\u00a0to license\u00a0Hardcar\u2019s\u00a0operational\u00a0model\u00a0\u2014\u00a0an easier task than starting from scratch in\u00a0states with\u00a0different\u00a0rules.\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">For cannabis transportation companies, insurance is their biggest expense,\u00a0which is\u00a0seemingly and\u00a0frustratingly disconnected\u00a0from actual loss runs.\u00a0In\u00a0the previous\u00a0Business Fleet\u00a0article, transporters said the lack of carriers and data on loss claims kept premiums high.\u00a0With\u00a0another year and\u00a0a half of data\u00a0and\u00a0stable\u00a0claims histories, premiums haven\u2019t come down.\u00a0\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">Hardcar\u00a0pays $20,000 to $26,000 per year per vehicle for cargo insurance and liability.\u00a0In Talaria\u2019s case, insurance takes 30% away from profits.\u00a0\u00a0<\/span><\/p>\n<h2 style=\"text-align: justify;\"><span style=\"color: #0000ff;\">Tracking\u00a0the Chain\u00a0<\/span><\/h2>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">Each state\u00a0requires\u00a0vendors to connect to\u00a0systems that\u00a0record the inventory and movement of cannabis through the commercial cannabis supply chain.\u00a0\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">In January 2019, the\u00a0California Bureau of Cannabis Control (BCC)\u00a0mandated\u00a0the\u00a0Metrc\u00a0track-and-trace system, which is used in 11 other states as well.\u00a0The system not only tracks shipments by customer,\u00a0it\u00a0also tracks specific products within those shipments.\u00a0\u00a0<\/span><\/p>\n<figure class=\"article-img\" style=\"text-align: justify;\"><span style=\"color: #0000ff;\"><img class=\"wrapImageCMS aligncenter\" src=\"https:\/\/fleetimages.bobitstudios.com\/upload\/business-fleet\/content\/article\/2020-10\/norcal1-__-720x516-s.jpg\" alt=\"Nor-Cal Vans, which\u00a0specializes in cannabis-compliant conversions,\u00a0creates insulated cage interiors for cannabis transport.\u00a0The company has also engineered\u00a0an install kit\u00a0called the\u00a0CannaCage, which is\u00a0California-regulations complaint\u00a0and shipped across the country for fleets to\u00a0install in\u00a0their vans.\u00a0 - Photo courtesy of Nor-Cal Vans.\" \/><\/span><figcaption class=\"caption-description\">\n<p style=\"text-align: center;\"><span style=\"color: #0000ff;\">Nor-Cal Vans, which\u00a0specializes in cannabis-compliant conversions,\u00a0creates insulated cage interiors for cannabis transport.\u00a0The company has also engineered\u00a0an install kit\u00a0called the\u00a0CannaCage, which is\u00a0California-regulations complaint\u00a0and shipped across the country for fleets to\u00a0install in\u00a0their vans.\u00a0<\/span><span style=\"color: #0000ff;\"><em>Photo courtesy of Nor-Cal Vans.<\/em><\/span><\/p>\n<\/figcaption><\/figure>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">While\u00a0Metrc\u00a0has generated complaints,\u00a0it has forced the industry into a new level of transparency\u00a0and helped with safety, Kleperis says.\u00a0In addition to tying into\u00a0Metrc,\u00a0Hardcar\u00a0also runs a separate logistics software\u00a0that provides\u00a0another backstop\u00a0in the chain of custody.\u00a0\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">In addition to supply chain tracking, GPS tracking\u00a0is mandated as well, though\u00a0rules differ by state. Some states require video surveillance of fleet vehicles, others require video surveillance and archiving 90 days of footage.\u00a0\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">Video telematics is a growing trend for cannabis fleets. Each of Talaria\u2019s 37 fleet vehicles has live video surveillance of the driver and cargo area, as well as the road ahead and behind. The company has an in-house video surveillance team that\u00a0continuously\u00a0monitors the vehicles.\u00a0\u00a0\u00a0\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">Licensing varies greatly from state to state\u00a0too. Some states\u00a0mandate separate licenses for cultivation, distribution, and sales,\u00a0while\u00a0others\u00a0only require\u00a0a single license\u00a0for both cultivation and distribution.\u00a0\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">As cannabis regulators are\u00a0often\u00a0greener to\u00a0cannabis operations\u00a0than the vendors they regulate, they look to\u00a0industry\u00a0veterans\u00a0for\u00a0guidance\u00a0in crafting the laws.\u00a0For\u00a0four years,\u00a0Kleperis has been working closely with BCC,\u00a0which has\u00a0some of the strictest cannabis transportation guidelines in the country.\u00a0Kleperis\u00a0expects\u00a0new\u00a0transportation\u00a0guidelines\u00a0to\u00a0be issued this year.\u00a0\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">In less than two years, Talaria has\u00a0also\u00a0become an important\u00a0information source\u00a0for regulators\u00a0on\u00a0transportation\u00a0security measures\u00a0within the states it operates.\u00a0\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">In the Northeast, many consider Pennsylvania the \u201cgold standard\u201d for cannabis regulations, which is why Talaria first started in that market,\u00a0Raptis\u00a0says.\u00a0Talaria transports 80% of the product in Pennsylvania and 95% of the cash.\u00a0<\/span><\/p>\n<h2 style=\"text-align: justify;\"><span style=\"color: #0000ff;\">Transport\u00a0Trends\u00a0<\/span><\/h2>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">Since the 2019 article,\u00a0Hardcar\u00a0has\u00a0started expediting larger shipments, which led to fleeting box trucks in addition to large commercial vans. While Kleperis is satisfied his company is\u00a0properly\u00a0addressing\u00a0the\u00a0security of these larger loads, he worries about the overall industry\u2019s ability to react.\u00a0\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">A 55-gallon drum of distillate cannabis oil is worth about $7 million. \u201cWhen somebody starts to move a box truck or bigger with product in it, you start to get into transporting millions of dollars of cannabis,\u201d he says. \u201cIf you can now put three of those drums on a truck, well, that&#8217;s a lot of money.\u201d\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">In the 2019 article, Kleperis pointed to a \u201cSusie and her minivan\u201d mentality, referencing a carefree attitude to safety of some smaller operations. \u201cThat&#8217;s gotten a little better because they started to see some thefts of product and cash,\u201d he says. \u201cThey started to understand they\u2019re a target.\u2019\u201d\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">Recently legal Mid-Atlantic and Northeast states haven\u2019t\u00a0encountered\u00a0the same mentality,\u00a0Raptis\u00a0says, as those states\u00a0aren\u2019t burdened with\u00a0California\u2019s 20-year\u00a0evolution\u00a0of\u00a0dispensaries,\u00a0sales,\u00a0and regulations. With fewer dispensaries coming online so quickly,\u00a0those states\u00a0were able to exert\u00a0more\u00a0oversight\u00a0over\u00a0operators, he says.\u00a0\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">The industry is\u00a0also\u00a0seeing a trend toward climate control\u00a0during transport, which\u00a0matches the evolution of cannabis products, particularly oils.\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">Cannabis oil\u00a0decomposes in warmer temperatures and changes opacity. The clearer the liquid, the greater price it can be sold.\u00a0For preservation, growers are freezing cannabis\u00a0directly\u00a0after harvesting and loading\u00a0shipments\u00a0into refrigerated vehicles for processing.\u00a0\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">Both Talaria and\u00a0Hardcar\u00a0run\u00a0both\u00a0temp-regulated and\u00a0refrigerated\u00a0vans\u00a0to transport cannabis.\u00a0Kleperis has\u00a0also recently\u00a0added air purifiers to his fleet vehicles to combat potential bacteria.\u00a0\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">California treats cannabis as produce for the purposes of regulating temperature during transport\u00a0and requires fleets to keep documentation.\u00a0\u201cMaintaining the cold chain was one of the harder things to accomplish because the state of California is just so big,\u201d\u00a0says Kleperis.\u00a0\u00a0<\/span><\/p>\n<h2 style=\"text-align: justify;\"><span style=\"color: #0000ff;\">Creating the\u00a0CannaCage\u00a0<\/span><\/h2>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">Todd La Pant, owner and COO of Nor-Cal Vans,\u00a0a Chico, Calif.-based van upfitter that specializes in cannabis-compliant conversions, says 90% of the units the company builds have\u00a0either\u00a0cargo\u00a0air conditioning or refrigeration.\u00a0\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">La Pant went further to engineer another popular option, a completely insulated cage in the cargo area. \u201cIt almost looks like an ice box,\u201d says La Pant.\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">When\u00a0interviewed for the January 2019\u00a0Business Fleet\u00a0article,\u00a0Nor-Cal\u00a0was upfitting the Ford\u00a0Transit Connect\u00a0for secure cannabis transport. The company\u00a0has since moved into larger van models such as Ford Transit, Ram\u00a0ProMaster, and Mercedes Sprinter, and now offers a greater selection of lock options for vans used for cash in transit.\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">Getting clarity on\u00a0regulations\u00a0has\u00a0been an issue for Nor-Cal. Two years ago, La\u00a0Pant\u00a0thought he\u2019d engineered a solution that met California\u2019s regulations for a secure container area, or lockbox.\u00a0\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">The solution secured a Ford Transit\u00a0Connect\u2019s\u00a0entire rear compartment by installing a bulkhead and disabling the side door locks. La\u00a0Pant\u00a0sent certified letters to the California Bureau of Cannabis Control as well as the Highway Patrol, spending months on the effort. \u201cWe could not get anybody ever to respond,\u201d he says.\u00a0\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">When new regulations were introduced, La\u00a0Pant\u00a0found out that no part of the vehicle body can constitute the lockbox. It was back to the drawing board.\u00a0\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">Ironically, the regulation does not specify the material type, quality, or thickness of the lockbox. \u201cThat literally could be a cardboard box that you put a padlock on,\u201d he says, \u201cwhich does not meet the intent of the law.\u00a0\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">Business is booming. What started with less than $250,000 in revenues from\u00a0secure transport conversions\u00a0in 2018 is\u00a0projected to reach\u00a0$750,000\u00a0in 2020. Yet La Pant believes much of Nor-Cal\u2019s business is yet to come.\u00a0\u00a0<\/span><\/p>\n<figure class=\"article-img\" style=\"text-align: justify;\"><span style=\"color: #0000ff;\"><img class=\"wrapImageCMS aligncenter\" src=\"https:\/\/fleetimages.bobitstudios.com\/upload\/business-fleet\/content\/article\/2020-10\/hardcar-group-outing-__-720x516-s.jpg\" alt=\"Hardcar\u00a0agents,\u00a0predominantly ex-military,\u00a0are trained in the specifics of cannabis distribution and how to help retail dispensaries follow a standardized set of protocols\u00a0during deliveries.\u00a0 - Photo courtesy of Hardcar.\u00a0\" \/><\/span><figcaption class=\"caption-description\"><span style=\"color: #0000ff;\">Hardcar agents, predominantly ex-military, are trained in the specifics of cannabis distribution and how to help retail dispensaries follow a standardized set of protocols during deliveries. <em>Photo courtesy of Hardcar.<\/em>\u00a0<\/span><\/p>\n<\/figcaption><\/figure>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">While the California market is close to saturation, La Pant has received \u201chundreds of requests from callers outside of California for secure transport conversions.\u201d La Pant has engineered versions of\u00a0an install kit\u00a0called the\u00a0CannaCage, which is\u00a0California-regulations complaint\u00a0and shipped across the country for fleets to\u00a0install in\u00a0their vans.\u00a0\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">So far, the\u00a0CannaCage\u00a0seems to be passing regulatory muster. \u201cWe&#8217;ve not had anybody who has had a problem with it yet,\u201d he says.\u00a0\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">Talaria puts lockboxes in all its vehicles, though some states don\u2019t require it. \u201cWe take the\u00a0California market mindset\u00a0from a security standpoint in all our states,\u201d\u00a0Raptis\u00a0says. \u201cNo state is\u00a0going to turn back security, they&#8217;re only going to increase\u00a0it\u00a0down the line.\u201d\u00a0<\/span><\/p>\n<h2 style=\"text-align: justify;\"><span style=\"color: #0000ff;\">The Future\u00a0<\/span><\/h2>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">Today,\u00a011 states\u00a0and\u00a0the District of Columbia\u00a0have legalized recreational marijuana and 33 states permit some form of medical use.\u00a0In the holdout states,\u00a0Nebraska and South Dakota\u00a0will vote on allowing\u00a0forms of cannabis\u00a0use in November.\u00a0\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">As a result of the coronavirus pandemic,\u00a0legal\u00a0cannabis businesses were deemed essential in nearly every state, yet federal prohibition prevented those companies from taking advantage of federal relief efforts.\u00a0This paradox raises the issue\u00a0in more pressing terms: How\u00a0and when will\u00a0cannabis be addressed federally?\u00a0\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">There are various forms of federal legislation\u00a0moving through Congress\u00a0right now.\u00a0\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">The SAFE Act would allow cannabis businesses to work freely with banks. The bill passed the House\u00a0of\u00a0Representatives\u00a0in 2019 and its language was part of the $3 trillion\u00a0coronavirus\u00a0relief bill\u00a0passed\u00a0in May. However,\u00a0the bill\u00a0has stalled in the Senate banking committee,\u00a0as members\u00a0look for broader\u00a0marijuana policy reform that is unlikely to garner bipartisan support.\u202f\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">Later in September (after this issue\u2019s publication) the House\u00a0will make a historic vote\u00a0on marijuana\u00a0for the first\u00a0time\u00a0at the federal level.\u00a0The MORE Act would\u00a0remove\u00a0marijuana from the federal list of controlled substances,\u00a0expunge some marijuana-related criminal records,\u00a0and impose a federal 5% tax on sales.\u00a0\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">With a presidential election looming, however,\u00a0the Republican-led Senate does not seem to have the appetite to\u00a0advance any\u00a0cannabis reforms. It\u2019s highly unlikely the Senate will take up the bill\u00a0this year.\u00a0\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">When legislation finally does pass,\u00a0the intent\u00a0would\u00a0allow cannabis transport across state lines, pave the way for traditional banking,\u00a0and\u00a0facilitate credit card processing,\u00a0which would\u00a0greatly mitigate the need\u00a0for cash-in-transit services and\u00a0thus\u00a0lower insurance risk.\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">Yet\u00a0those benefits aren\u2019t guaranteed,\u00a0nor would they be granted immediately. Both\u00a0Raptis\u00a0and Kleperis say\u00a0it\u2019ll take\u00a0time \u2014 perhaps\u00a0years\u00a0\u2014\u00a0before banks\u00a0and merchant services\u00a0gain the comfort levels to work with cannabis on a large scale.\u00a0\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">Canada\u2019s nationwide rollout in 2018 didn\u2019t serve as a shining example for the U.S. to follow.\u00a0Rushed and poorly written laws have led to supply imbalances,\u00a0an\u00a0inferior legal product,\u00a0and a thriving black market.\u00a0\u201cThey did it overnight and it just spiraled out of control,\u201d\u00a0Raptis\u00a0says.\u00a0\u201cEveryone&#8217;s walking backwards in Canada to operate.\u201d\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">Raptis\u00a0believes the industry is a full 10 to 12 years away\u00a0to\u00a0when cannabis is legal recreationally on a federal level and ingrained in business processes like alcohol.\u00a0\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">Talaria\u00a0is gearing\u00a0its\u00a0systems and processes\u00a0for\u00a0that\u00a0day,\u00a0though\u00a0the\u00a0more immediate frontier is\u00a0passage of\u00a0state legislation for\u00a0home delivery of medicinal cannabis. Talaria\u2019s software would enable an\u00a0\u201cUber Eats model\u201d\u00a0of connecting drivers with patients and dispensaries.\u00a0\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">Raptis\u00a0believes the federal government will ease restrictions on medical marijuana first, which still might take five to six years. \u201cIf I had good medicine in North Carolina that would help someone in Pennsylvania, why hold that medicine back from a patient if it\u2019s legal in both states?\u201d he asks. \u201cIt&#8217;s all about patients.\u201d\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">\u201c(Medical legalization) is\u00a0providing\u00a0a\u00a0test run for the\u00a0recreational side,\u201d he says.\u00a0\u201cAnd that&#8217;s what I recommend\u00a0\u2014 keep\u00a0it in a controlled environment, then open it up to the masses.\u201d\u00a0<\/span><\/p>\n<div class=\"widget-see-also\">\n<p>&nbsp;<\/p>\n<p class=\"p-16-gray\">by <a href=\"https:\/\/www.businessfleet.com\/authors\/3271\/chris-brown\">Chris Brown<\/a><\/p>\n<p><span class=\"posted-by\">Source: <a href=\"https:\/\/www.businessfleet.com\" target=\"_blank\" rel=\"noopener noreferrer\">https:\/\/www.businessfleet.com<\/a><\/span><\/p>\n<\/div>\n<div class=\"g-cols wpb_row type_default valign_top vc_inner vc_custom_1585038969469\">\n<div class=\"vc_col-sm-12 wpb_column vc_column_container\">\n<div class=\"vc_column-inner\">\n<div class=\"wpb_wrapper\">\n<div class=\"w-post-elm post_content\">\n<h3 style=\"text-align: center;\"><a href=\"https:\/\/advancedfleetmanagementconsulting.com\/eng\/consultancy\/\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>CUT COTS OF THE FLEET WITH OUR AUDIT PROGRAM<\/strong><\/a><\/h3>\n<p><a href=\"https:\/\/advancedfleetmanagementconsulting.com\/eng\/consultancy\/\"><img loading=\"lazy\" class=\"aligncenter wp-image-5377\" src=\"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-content\/uploads\/sites\/3\/2020\/04\/nueva-ley-auditoria.jpg\" sizes=\"(max-width: 858px) 100vw, 858px\" srcset=\"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-content\/uploads\/sites\/3\/2020\/04\/nueva-ley-auditoria.jpg 2000w, https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-content\/uploads\/sites\/3\/2020\/04\/nueva-ley-auditoria-300x200.jpg 300w, https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-content\/uploads\/sites\/3\/2020\/04\/nueva-ley-auditoria-1024x682.jpg 1024w\" alt=\"\" width=\"858\" height=\"572\" \/><\/a><\/p>\n<p style=\"text-align: justify;\">The audit is a key tool to know the overall status and provide the analysis, the assessment, the advice, the suggestions and the actions to take in order to cut costs and increase the efficiency and efficacy of the fleet. We propose the following fleet management audit.<\/p>\n<h3 style=\"text-align: center;\"><a href=\"https:\/\/advancedfleetmanagementconsulting.com\/eng\/consultancy\/\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>FLEET MANAGEMENT AUDIT<\/strong><\/a><\/h3>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Photo courtesy of\u00a0Talaria Transportation. Ari\u00a0Raptis,\u00a0founder\u00a0and CEO of Talaria, made his first cannabis\u00a0delivery with\u00a0a single employee on \u201c4\/20\u201d \u2014 April 20, 2018.\u00a0Today, Talaria moves $80 million a month in cannabis cash and expects its cash processing business to surpass $900 million in deposits by the end of 2020.\u00a0 Growing a business 600% over two financial quarters&#8230;<\/p>\n","protected":false},"author":3,"featured_media":9485,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[18],"tags":[231],"_links":{"self":[{"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/posts\/9484"}],"collection":[{"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/comments?post=9484"}],"version-history":[{"count":1,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/posts\/9484\/revisions"}],"predecessor-version":[{"id":9486,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/posts\/9484\/revisions\/9486"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/media\/9485"}],"wp:attachment":[{"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/media?parent=9484"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/categories?post=9484"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/tags?post=9484"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}