The White House says pharmacies should be classified on the NAICS lists like smoke shops

Cannabis retailers could soon be grouped with smoke shops as a White House committee recommends that the North American Industry Classification System (NAICS) update its classification standards.

The NAICS is a classification system used by fear of government policy, researchers, academics, business community, and the general public. It was developed by an alliance between Canada, Mexico, and the United States of America.

This system helps the three countries standardize industries and it serves as a unified framework that guides the collection, compilation, presentation and breakdown of industry statistics.

The committee believes these changes will allow economists to understand the concept of cannabis trafficking like other business categories.

Lately the White House has released some news that has the country wondering if the president can finally get around to enacting cannabis reforms nationwide. A few days ago, the White House Secretary announced that the Presidency had taken steps to initiate pardon trials for non-violent cannabis inmates. The ECPC is now publishing this report.

The committee and its report

The White House has put together a committee to recommend cannabis guidelines for the NAICS 2022 update, which will be used to group similar businesses in Canada, Mexico, and the United States.

The report with all the committee’s proposals was published in the federal register.

The committee, called the Economic Classification Policy Committee (ECPC), includes the Census Bureau, the Bureau of Economic Analysis, the Bureau of Labor Statistics, and the Office of Management and Budget (OMB).

In its official report, the committee proposes to change the listed business categories. The report says that cannabis retail stores should be reclassified next to smoking stores.

Smoking shops include tobacco shops, e-cigarette outlets, and smoking lounges or bars.

Retail cannabis stores were previously classified under the miscellaneous category.

Members of this committee believe the cannabis industry is poised for more growth, especially if state cannabis reform is finally approved. This expected growth is the main reason these proponents believe the industry needs a specific category in the North American Industrial Classification System (NAICS).

The ECPC said there may be a need to index cannabis, CBD farming, hemp and wholesale companies into individual NAICS units

This seems too early, however, so the committee decided that a composite grouping with other smokers and their industries would be the best way to go. Proponents would rather make a broader change in the industry. All of the proposed changes show that the US Economic Classification Policy Committee is aware of the growing legitimacy of the cannabis industry across the country

More details on the ECPC proposal

ECPC recommends reclassifying all forms of cannabis and getting an updated schedule and NAICS classifications. This updated classification is obtained from both high and low THC (hemp) wholesalers.

According to the report, CBD is not just categorized into one section, but is broken down into several categories. The committee also believes that CBD needs to be updated in another North American product classification system.

The committee suggests that a new industry called “Tobacco, Electronic Cigarette and Other Smoking Supplies Stores” be created under NAICS.

As announced in February, the Census Bureau has since worked to make economic data on cannabis more accessible to economists by including a cannabis tax and licensing question in its state economic reporting process. This will shed further light on the state cannabis economic data ahead of the period when any recommended changes are made. Adding a cannabis tax question to the quarterly and annual reports submitted by all states can help maintain relevance and preservation of important data.

The ECPC believes these changes will help actors and observers in the marijuana industry keep track of the system efficiently. The proposed system will help analysts have a clearer view of the markets. You will also be better equipped to disseminate the statistical data obtained over a period of time.

Beyond cannabis

The ECPC has also proposed that the scope of NAICS agriculture and wholesale categories need to be expanded to include cannabis and hemp index entries. The report explains that other classifications include other food crops grown under cover, other various crops, and other agricultural commodity wholesalers.

As mentioned earlier, the committee suggests registering CBD under various index entries. Some of the suggested entries include; all other miscellaneous chemical products and preparations, all other miscellaneous retailers, all other wholesalers in chemical and related products.

What’s next?

For each of these proposals to be codified, the public must give the government the go-ahead. The 45-day public comment deadline has begun and Americans are free to share their views on these proposed changes.

Marijuana advocates believe that once this data is modernized and easily accessible to all, lawmakers would see firsthand the numbers being recorded by the marijuana industry. You will be able to see the economies quickly recover in states that have decriminalized the use and sale of cannabis. Numbers don’t lie.

last words

This is the first time an ECPC team has proposed changes to how new indices are created for marijuana retailers to be grouped. The other times NAICS was reviewed, marijuana was placed in a category for commercial wholesalers and for plants grown indoors or outdoors. It is currently also listed in the Miscellaneous section.

Proponents expect these new proposals to be seen as a gesture of remembrance that will spur the cannabis sector toward greater growth.

Hopefully, by the time the ECPC committee is reinstated, the cannabis industry will have a special set of NAICS codes in place. Federal, state, and local government agencies, as well as other members of society, need this data to make informed decisions backed by accurate data.