The burgeoning New York State Cannabis Market has been able to launch in record time compared to more mature markets like California and Illinois. The time between state legalization and the actual opening of licensed cannabis medicinal retail and more recently adult-use dispensaries is within one year! This is a great feat to be proud of by any metric though we are in the beginning stages.
With an indelible New York State of Mind, cannabis industry advocates, ancillary technical/professional services stakeholders and regulators created well-informed introductory regulations to get the ball rolling. The New York Social Equity Roundtable examined the best and worst practices of other programs and weighed in on current regulations in our recommendations to the NY Office of Cannabis Management (OCM).
The New York Social Equity Roundtable is a diverse gathering of industry stakeholders along the cannabis industry supply chain with a mission to be a catalyst in the building of an equitable and inclusive cannabis that reflects the ethnic, cultural, social, and economic diversity of New York State. The Roundtable is committed to gathering and sharing valuable industry insights and invites collaboration with other advocacy organizations and individuals to develop solutions.
I would like to point out that while the news cycle has brought to light certain aspects of the New York market, the public should also be made aware of the ongoing, painstaking battle it has taken to fight for equity in New York.
Below are snapshots of the NY market landscape and some of the major challenges facing current and aspiring cannapreneurs that will hopefully inspire further conversations on the matter. Our hope is that this article helps not only provide understanding of what it has been like in the Empire State, but also provides new states with an understanding of the massive undertaking that cannabis legalization requires in order to be executed upon equitably.
In this article:
Comments on the impact of unregulated smoke shops
Comments on bad faith lawsuits
Legacy Operator definition
A note on Supply Chain Opportunities
July 31st Public Comments on Adult Use Rules
January & February Public Comments
Letter recommending an Advisory Board focused on Economic Inclusion & Expansion
Letter to the Governor urging Pardons for ALL Nonviolent Cannabis Offenders
Unregulated Smoke Shops / Grey Market thwarting the growth of licensed retailers
Frederika Easley, The People’s Ecosystem, MCBA Board Member:New York’s goal must be to create a regulated market that is so enticing and easy to navigate that operating in both the gray and legacy markets feels like unnecessary risk. The smoke shop owners who have decided to be greedy and harmful in many cases offering tainted products and appealing to the youth must receive consequences that educate, penalize and offer opportunity for redemption.
Stephanie Keeffe, Etain:Allowing smoke shops to operate without the appropriate licensure sets a dangerous precedent and undermines the efforts to establish a safe and legitimate cannabis industry in New York. It is in the best interest of everyone, including consumers, businesses, and the government to ensure that all businesses follow the appropriate licensure procedures and comply with regulations. Safety should always be paramount.
Tavian Crosland, Social Equity Empowerment Network:Gray market operators are a reality in any transitioning market and we don’t want to have a second wave of cannabis criminalization. We also want to give the people most impacted by prohibition a chance to profit from the plant. With priority CAURD licenses issued we have taken a step towards restitution and equity and without the step of enforcement we may be setting them up for failure. This is the most hostile environment a new business, in a new market could traverse. Enforcement doesn’t have to mean criminalization and we’ll miss our mark if we don’t reign in non compliant operators. We won’t get a second chance to get it right.
Scheril Murray Powell Esq, JUSTUS Foundation:The MRTA is very clear that priority should be given to those who have been significantly harmed by the criminalization of cannabis. The typical Grey market participant is not from these disproportionately impacted communities and have the financial means to open these storefronts. The individuals that have not directly experienced the harm referenced in the MRTA should recognize that they are trying to skip ahead of those who qualify for equity and have been harmed. There will be thousands of retail licenses in NY and plenty of opportunity for everyone to participate, but the grey market actors need to wait their turn. This is not judgment, but an appeal to their moral compass.
Hawaii Mike: The grey market shops are causing the biggest obstacle on the pathway to a thriving legal market. The lack of clear laws and regulations make this an almost impossible battle without using extreme measures to force these businesses to cease operations. Until these shops are closed permanently there will be confusion amongst the consumers and unsurmountable competition to legal operators.
Raina Jackson, NCIA DEI Committee Organizer:NY needs an Advisory Board that is more representative of the cannabis supply chain as operators and ancillary providers with direct applicant/operator interaction. Too many assumptions are made about what operators want without a robust survey of what we say we actually need. More than just money is needed. would help illuminate pain points and to keep the conversation focused on how to resolve unintended consequences arising from any venture this new under regulation. The current configuration does not represent stakeholders disproportionately targeted and excluded.
Lawsuits Attempting to Circumvent the Equitable Rollout of Cannabis Retail Licenses
The recent CARCS lawsuit is reminiscent of lawsuits launched in Illinois by general market operators disregarding the need for the prioritization of those disproportionately harmed by racially motivated cannabis prohibition tactics. Guided by greed, their intentions are to use the courts to stall progress and eliminate competition.
Mike Lomuto (former Head of DEI at the NCIA): While New York has an uphill battle as it navigates the unregulated market and integrates Legacy operators into the regulated space, OCM has ensured that the first set of licenses in New York go to individuals deemed disproportionately impacted by the war on drugs. It appears as if this lawsuit is a tactic we have seen in other states, where the small handful of multistate licensees who were part of a highly exclusive rollout of the Medical market are attempting to push themselves into the Adult Use market, under the guise of promoting equity while in actuality furthering the harm of the war on drugs and continuing the exclusion of justice-involved licensees.
Raina Jackson, NCIA DEIC Organizer, Policy & Regulatory subcommittee chair:As a reminder to companies that have unloaded these spurious lawsuits against well intentioned cannabis programs, be on notice that we see you and have documented what you have been doing to undermine equity, progress, and fairness. When you end up on the wrong side of history, no one will buy your revisionist historical accounts. The influential Millennials and GenZ populations that you seek as customers demand a higher level of corporate responsibility and may not be so forgiving. Before it’s too late I hope you find that it’s more rewarding to cooperate and coexist rather than to try to conquer. It is proven that well run companies that prioritize equity, inclusion, and transformation reap the benefits in the bottom line, including employee retention and community goodwill, no matter what industry.
Discussion of the ASTM Legacy Operator Definition
Legacy operators have been maligned and misunderstood in the regulated The definition of Legacy is Definition – as an added layer to help readers understand the situation
ASTM Definition of Legacy Operator
“A Legacy Operator is an individual who:
1) Commercially for the majority of their income, or sacramentally, or ceremonially distributed cannabis
2) Outside of the Legal Framework
3) During the period of Prohibition
4) For a minimum of 5 years before legalization”
Lack of Education on Supply Chain Opportunities and Licensing Timelines
We notice that the infrastructure focus on brick and mortar retail is often to the detriment of other license types that don’t get as much attention but are more financially attainable.
Lack of education provided on license types within the supply chain outside of retail and cultivation, including ancillary opportunities without a need for licensure. There is a need for real or hypothetical case studies illuminating the financial and business steps and resources necessary to succeed. Expectations need to be tied to realistic timelines and financial inputs.
Resolutions and Opportunities. Need for heightened levels of Technical assistance and ancillary service/product providers
Public Comments Submitted on July 31st Regarding Adult Use Rules
The Office of Cannabis Management put out a request for public comments in May of this year, on its latest round of Adult Use rules. Over the course of several Roundtable discussions and countless hours of document review, comparison to previous Rules, and several debates over specific language, our Roundtable produced a set of public comments we are very proud of, that we believe if adopted would provide for a more equitable industry.
This is an excerpt of the full document, which can be found here.
Part 121 – Social and Economic Equity
§ 121.1 Qualifications for a Social and Economic Equity Applicant. (a) (b)
RECOMMENDED TEXT (a) General Qualifications. To qualify as a social and economic equity applicant, an applicant shall demonstrate, through the mandatory production of documents and other information described in this Part: (1) that sole control of the applicant is held by: (i) an individual from a community disproportionately impacted by the enforcement of cannabis prohibition; (ii) a minority-owned business; (iii) a women-owned business; (iv) a distressed farmer; or (v) a service-disabled veteran owned business. (b) If sole control of the applicant is held by a woman who is also a minority-group member or women who are also all minority group members, the applicant may qualify as a minority- owned business, a women-owned business, or both. (1) Applicants qualifying for both a minority and women owned business shall have extra priority status in processing applications.
RATIONALE
We have added (b.1) because there needs to be a prioritization of Black, (Afro-Latin), andIndigenous women within women-owned businesses. Otherwise social equitydisproportionately benefits White women, as selective affirmative action has oftendone in the past.
Due to Prop 209 in CA, race could not be used as a qualifying criterion for equity. As aresult in San Francisco, equity grant funds were distributed among an even number ofBlack and White applicants/operators. CA is unique because of the history of whitelegacy operators upstate yet this was not equitable funds distribution. NY should avoidthe same mistake.
Public Comments Submitted in January and February 2023
Earlier in 2023, our Roundtable also submitted public comments on an earlier version of OCM’s Adult Use rules, as well as its rules regarding marketing and packaging. Internally, our Roundtable faced the challenge of transitioning into a new year and a new committee term at the NCIA. The fact that our public comments were the most robust document we had completed to date was a testament to the resilience and collaborative nature of our Roundtable.
Letter Recommending Advisory Board, Re-submitted to OCM September 2023
In September of last year, our Roundtable submitted a letter to OCM, recommending the creation of an Advisory Board that would be community-based and focus on Economic Inclusion & Expansion. This was modeled after a similar initiative that has produced successful in Michigan, with Eric Foster, M4MM’s National Policy Director, serving as the bridge between our Roundtable and the Michigan Social Equity Task Force.
Letter to Governor Hochul Urging Pardons for Nonviolent Cannabis Offenders
A very strong unifying factor of our Roundtable is everyone at the table’s commitment to the repair of the harm inflicted by the War on Drugs. With that in mind, we submitted a letter to Governor Hochul late in 2022 urging her to pardon ALL nonviolent cannabis offenders, effectively taking the lead of President Biden, but going an imperative step further to set New York as a leader to undo some of the harm it has itself inflicted. As this action has still not taken place, our Roundtable has resubmitted this letter to the Governor.
This is just the beginning. Unfortunately, it is necessary for us to always remain diligent in our work for true equity, not only in cannabis but in society. At least until the overall momentum of society is moving in that same direction. Until then, we encourage you to keep going strong, to tap into collaborative groups doing the same work, to draw on one another’s strengths, as well as wisdoms, experiences, and collective resources.
The fight to create an equitable industry in New York and other states will continue on, and the members of the New York Social Equity Roundtable will be here until our mission is achieved.
The Equity Workshop Tour: Impactful Conversations with Regulators
by Mike Lomuto, NCIA’s DEI Manager
Part 1 of a Blog Series Recapping the Equity Workshop Tour – Spring 2023
I believe that the cannabis industry needs intimate and dynamic events, particularly if we are to build in an equitable and diverse fashion, and that’s why I embarked on the Equity Workshop Tour, navigating countless obstacles along the way.
After completing the four workshops that comprised the Tour, that belief has been validated, with several additional takeaways.
As part of each workshop, we conducted panel discussions with representatives of state and city regulatory agencies and advocacy organizations.
These conversations were especially illuminating for me, as I got to witness firsthand the ways in which regulators and advocates have been working together in each of these states, with the same mission of equity front and center.
NEW JERSEY
In New Jersey, the Cannabis Regulatory Commission (CRC) recognizes the need for input from stakeholders, and our intimate panel discussion, with a high level of audience participation, offered exactly that.
Hearing the “origin stories” of CRC Vice Chair Samuel Delgado and CRC Commissioner Charles Barker is a large part of why I believe we have a chance at an equitable industry. Because at the end of the day, we have solid allies within the halls of government, who share our mission.
I was very encouraged to learn about a state that appears to be outpacing other states in the drive to stand up an equitable industry. There does, however, appear to be a lot of work that needs to be done on the municipal level. This is where advocacy organizations, like NCIA, and stakeholders must work together to educate local regulators in order for expeditious and equitable permitting processes to unfold. I believe that NCIA’s committees can provide support in this area, as we have previously, by providing written or verbal testimony on specific matters that municipalities are still unaware of.
It was also illuminating to understand the role that service-disabled veterans play in the industry, as pointed out by Osbert Orduna (of NHCC and SDVICA). Nichelle Santos (M4MM) also contributed valuable insights to this panel discussion.
ILLINOIS
Illinois is a state that has drawn the ire of many. While the legislation was the first to include equitable provisions, the implementation has been challenging, and many people have lost a lot.
That said, as opposed to the nascent and scattered approach of advocacy I witnessed here a few years back, it’s very encouraging to see advocacy organizations working together on the same page, developing a collaborative working relationship with one another and the regulators. A big shoutout to Cannabis Equity Illinois Coalition (CEIC) for their role in this. (check out this recent Catalyst Conversation to learn more about their work)
It seems that a consolidation of Cannabis oversight into a singular agency with its own power to regulate the industry is needed. There are currently 17 agencies with a role in Illinois’ industry, and the state’s Cannabis Regulatory Oversight Officer serves as a limited version of a centralized agency, without the power to enact the implementations everyone seems to know are needed.
I encourage you to tap in with CEIC, SEEN, and ULCIA to learn more about how you can help with the priorities they’ve identified are necessary to create an equitable industry in Illinois.
NEW YORK
In New York, there is a need for more transparency, which it seems the Office of Cannabis Management recognizes and is headed in that direction. I’ve said this before, and I’ll say it here. OCM has a difficult job, balancing the directives from those above it, with the needs of the stakeholders. As Tabatha Robinson, OCM’s Deputy Director for Economic Development Policy and Research, pointed out during the panel, OCM is made up of several dedicated people who go above and beyond because they believe in creating an equitable industry. As advocates, our challenge lies in balancing the above understanding while also ensuring that the government is held accountable for its promises
Shanduke McPhatter, a CAURD licensee who represented the NY CAURD Coalition on the panel, said it best when he advocated for greater transparency in the process. He reminded us that patience is not the issue for those who have served time, as they’ve learned patience the hard way already. But while being patient, there is a need for greater transparency from the state. A large part of this has to do with the major lack of transparency from the Dormitory Authority of the State of NY (DASNY), which also impacts OCM and their ability to operate properly. It seems like it’s time for Ruben McDaniels and DASNY to stop playing games, but I’m not stating anything that everyone in New York doesn’t already know.
Lastly, I appreciated Dr Adrian Adams (M4MM) and Scheril Murray Powell (JUSTUS) pointing out the importance of the industry to work together to find creative solutions. These types of discussions are a great starting point, but it’s how we collaborate on action items moving forward that will define our path forward.
MICHIGAN
In Detroit, our panel included NCIA Board Member Rebecca Colett, who has founded the Detroit Cannabis Project (DCP) as a mentorship group to support cannapreneurs on their journey. Thus far, that journey has mostly consisted of staying relevant and advocating properly while the myriad of municipal challenges have unfolded.
What stood out to me was the way in which Kim James and the City of Detroit’s Homegrown Cannabis Office have partnered with DCP, recognizing the need to support mentorship from the municipal level. As Detroit comes online, and as capital markets open back up to fund these new cannapreneurs, the participants in Detroit’s cannabis program will have a leg up on where they would’ve been without this type of holistic support.
Another interesting topic of conversation was led by Scheril Murray Powell, who provided an update on the work to support Legacy operators being conducted by ASTM and the JUSTUS Foundation. This includes advocating for a universal definition of “Legacy operator”, of which NCIA’s DEI Program is very supportive:
“An individual who: 1) Commercially for the majority of their income, or sacramentally, or ceremonially distributed cannabis; 2) Outside of the Legal Framework; 3) During the period of Prohibition; 4) For a minimum of 5 years before legalization.”
As part of the beginning of what will hopefully be a robust dialogue on this topic, NCIA Cultivation Committee member Joseph Smith pointed out the potential challenges for adopting such a standard in the state of Michigan, which had a caregiver program for a decade or so prior to legalization.
I can’t wait to get back out to Michigan to see this constantly-evolving program.
WHAT IT ALL MEANS
My biggest takeaway is that no matter how many of these types of conversations we have, we need to continue having them and to continue pushing the ball forward. Cannabis is going to take several years to stand up properly, and equitably, so dialogue between advocates, business owners, and regulators is invaluable at this stage in the game.
And the more cannabis entrepreneurs realize the importance of advocacy at this early stage, the more an equitable industry is possible.
My hope is that these panels, in the setting of the workshops, provide a forum for the right type of conversations, as well as inspiration for business owners as to how to advocate for themselves and others in a successful manner.
Equity Member Spotlight: From Equity Scholarships to Committee Leaders
by Mike Lomuto, NCIA’s DEI Manager
NCIA committees are looking, sounding, and acting more and more like the diverse faces of Main Street cannabis. And it’s not just about representation. When the diversity of our cannabis community is reflected in NCIA Committee leadership, the conversations we are having across the organization more accurately reflect the experiences of the industry.
All of the NCIA Committee members profiled here came through the Equity Scholarship program, an initiative of our DEI Program to systematize more equitable representation at the organization. These leaders have much to say on how we all become more successful when equity is at the forefront.
As the proverb goes, “If you want to go fast, go alone. If you want to go far, go together”.
Why did you choose to volunteer to serve on a committee?
John Murray (JM), President, Sustainable Innovations, Hemp Committee – To actively contribute to the advancement of sensible industry-wide policy reforms
Samantha Sage (SS), Founder, Kind Philanthropy, Education Committee – To continue to ‘Hype-up Community Impact’ in the Cannabis industry, and collaborate with other leaders to progress social responsibility.
Anthony Jenkins (AJ), CEO, Next Level, Cannabis Manufacturing Committee – The path for an entrepreneur aiming to obtain a manufacturing license is littered with unnecessary roadblocks and I would like to help minimize those hurdles for the next generations of cannapreneurs.
Raina Jackson (RJ), Founder & CEO, PURPLE RAINA Self Care, DEI Committee Organizer – I volunteered so that I can advocate for myself and others facing similar challenges as cannabis license applicants and operators.
Richard Fleming (RF), President, Altered State Cannabis Company, Retail Committee -As a pre-operational entity the main reason is to learn as much as possible from seasoned operators and ancillary companies with experience in various markets. Just as important, is to actively participate in a group of likeminded people to further the cause of normalization.
Toni, Toni Consulting and Wellness, Education Committee; Health Equity Working Group
Toni (T), Founder, Toni Consulting and Wellness, Education Committee; Health Equity Working Group – I volunteer to be the change I want to see in the cannabis industry. Utilizing my voice, face, knowledge, and experiences.
Kenneth Cottrell (KC), COO, Cannalean LLC, DEI Committee – I chose to volunteer on the DEI Committee to help promote legislation to promote a more diverse cannabis industry. According to MJBizDaily, “in the cannabis space, executive positions held by racial minorities fell to a new low for the group since they began tracking the number in 2017, dropping to 12.1% in 2022 from 13.1% in 2021” (MJBizDaily 2022).
Why is it important for committees to include proper representation from diverse communities, and more specifically from our Equity Scholarship Program?
John Murray, Sustainable Innovations, Hemp Committee
(JM) Diversity inclusion provides a broadened perspective with contributions from different backgrounds, capabilities, and regulatory environments. It is important to work together as a team and understand all viewpoints to become and remain successful.
(AJ) It’s very important for committees to have proper representation and include our Equity Scholarship winners in their meetings to diversify the narrative and present issues and solutions from a different perspective.
(RJ) It’s important for us to share our experiences as Equity Scholarship Program recipients on committees because we have so much to contribute to the dialogue and multi-faceted solutions. We have traditionally been excluded from economic opportunities and are rarely consulted on the important policy and regulatory decisions that often continue to harm us.
(RF) The information from a wide array of backgrounds and perspectives from all levels of the spectrum is paramount in creating and shaping a positive image in the cannabis industry. By providing a platform for us as individuals, our ideas, our businesses and our communities to reverse the stigma and become a driving force in the market.
(T) In order for any organization to be truly useful, representation must reflect diversity. If not we end up with solutions that are not equitable.
Kenneth Cottrell, Cannalean LLC, DEI Committee
(KC) It is important for committees to champion diversity. Creating diversity on committees promotes an organization as an equal and inclusive environment. It is very important for the current members who are participating, but it will also improve talent recruitment and innovation efforts for the organization. As an alumni of the NCIA’s Equity Scholarship Program, it was the main reason I became active in the organization and used its resources to help promote my company, Cannalean.
What has your experience serving on a committee been like thus far? Is there any committee work from previous years you’d like to share?
(JM) The committees I served on have been mainly focused on consumer and legislative education.
(RJ) I benefited so much from my first year working with mission-focused cannapreneurs along the supply chain, that I volunteered for a second year.
(T) Health Equity working group was able to host a town hall discussion on the importance of cannabis health equity in disadvantaged communities.
(KC) My experience serving on the committee has been amazing. I was very impressed by the kickoff zoom meeting. I also met a lot of my fellow committee members at MJ Biz Con and MJ Unpacked. I am looking forward to hearing how cannabis policy is progressing around the country and if there are any policy frameworks that I can use to lobby in Nevada.
What are you hoping to accomplish during the 2023 committee term?
(JM) Complete educational series and contribute to sensible regulatory language for the 2023 Farm Bill, which impacts our entire industry.
(SS) Inspire more committee members and leaders in the Cannabis industry to build community impact initiatives into business plans and build relationships with nonprofit organizations.
(AJ) In the 2023 committee term I would like to make it easier for the states coming on to find information about how to run a successful cannabis manufacturing program that includes equity. I would also like to make it easier for future cannabis manufacturers to become licensed, and adopt best practices to help their business succeed.
(RJ) I will continue to represent the interests of Equity cannapreneurs navigating the regulatory landscape nationwide, with a focus on CA and NY, and in May 2023 I plan to represent the DEIC at Lobby Days in D.C. As a member of the Policy & Regulatory sub-committee, I am synthesizing the policy recommendations of members of the NY Social Equity Roundtable, informed by the best practices and failings of existing programs nationwide.
(RF) I hope to inspire others to find their niche and participate in all aspects of the movement. I really look forward to being an integral part of initiatives that promote our collective goals and move the dial on the public’s education and opinion. Additionally, receiving and utilizing information from others will assist in avoiding pitfalls they have witnessed or experienced themselves.
(T) I hope to bring awareness to cannabis health equity, policies, and initiatives that support inclusivity. I seek to inspire businesses to invest in education in disadvantaged communities in ways that provide equitable long-term benefits and solutions.
(KC) I am hoping that we bring awareness to the lack of diversity in ownership and senior-level management in the cannabis industry. I want to work on developing a cannabis leadership incubator that focuses on cannabis policy, fundraising, and supply chain. There are states like Nevada that need more comprehensive social equity programs. I want to work with the committee to propose laws and policy to present to Nevada elected officials.
Update from NCIA’s Diversity, Equity, and Inclusion Program
by Mike Lomuto, NCIA’s DEI Manager
Our DEI Program has a lot to share and celebrate as we gear up for Spring, when we hope to hit the road with our Equity Workshop Tour.
Keep reading for all the highlights and wins to start 2023.
But first, I want to remind you that today is the LAST DAY to throw down sponsorship dollars as part of our Lobby Days DEI Delegation.
ALL Lobby Days sponsorship dollars raised during the month of February directly fund our DEI Delegation.
This allows us to provide travel stipends as part of our commitment to DEI at NCIA. Our delegation consists of some of our organization’s most engaged and knowledgeable social equity policy advocates.
This is one of NCIA’s most important functions. It’s imperative we get it in the win column so that our report back in May/June’s newsletter is one of success for our DEI efforts.
February marked the momentous launch of NCIA’s Global Majority Caucus.
Made up of Global Majority leaders from across the organization – Board Members, Committee Leadership, Equity Members serving on committees, and leaders of DEI Program initiatives.
The purpose of the GMC is to galvanize our Global Majority voices and impact at the nation’s oldest and most established cannabis trade association.
I am humbled by the voices that were present last week and completely inspired by what we will continue to accomplish together.
Together, we will continue to advocate for greater Diversity, Equity, and Inclusion in our industry as we push toward federal legalization, and the more equitable rollout of the myriad of state cannabis programs.
Bringing minority (aka Global Majority) perspectives to the forefront of the industry
Join us for the live recordings every Monday at 1 pm ET on LinkedIn Live
Subscribe on your favorite podcast platforms, and catch up on the first few episodes of the new season, featuring NCIA Board Vice Chair Chris Jackson, NCIA Board Member Rebecca Colett of Calyxeum, and Dr Mila Marshall (Vice Chair of the Education Committee)
Upcoming guests include:
NCIA Board Member Ben Larson of Vertosa, Chris Jensen and Tiffany Watkins (DEIC Chair and Vice Chair), Kay Villamin (SRC Chair), Keyston Franklin (BFSC Chair), and Michael Webster (host of the Power Hour)
February featured TWO Catalyst Conversations (our DEI-focused webinar series)
Featuring Gary Little and Doug Kelly, who are blazing trails in Chicago, alongside NCIA committee members Ace Castillo and Shannon Vetto
For cannabusinesses looking for how to “crack the code” of doing well AND good. We discuss how to create positive community impact AND excel as a business as a result
Featuring NCIA Committee members Vanessa Valdovinos, Keyston Franklin, and Jim Makoso, as well as new Board Member Amy Larson
Especially relevant for newer leaders in the cannabis space, seeking insights into how to succeed and gain lasting power, based on the opportunities 2023 presents.
New York Social Equity Roundtable Submits Public Comments, co-signed by a dozen partnered organizations
Since Spring of last year, we have been building coalition through conducting an ongoing roundtable discussion, consisting of multiple National and New York based cannabis social equity and industry organizations to assess and provide feedback regarding rules and regulations. Big thank you to the participating orgs, including: Minorities for Medical Marijuana (M4MM), Social Equity Committee Co-Chairs of NYC/Hudson Valley Cannabis Industry Association (NYCCIA/HVCIA), NYC NORML, Black and Brown Economic Power in Cannabis (BB EPIC), JustUS Foundation, Unified Legacy Operators Council (UNLOC), Minority Cannabis Business Association (MCBA), Social Equity Empowerment Network (SEEN), The Hood Incubator,The People’s Ecosystem (TPE), Etain, legacy operators, and social equity cannabis business owners.
On February 13th, we submitted our latest round of public comments, in a common effort to assist the New York Office of Cannabis Management in its mission to create an equitable and inclusive cannabis industry for New York State.
DEI Committee leader Raina Jackson served as Lead Author, with support from fellow NCIA committee members Mark Slaugh, Adrian Adams, Stephanie Keeffe, and Osbert Orduna.
Get a glimpse into the impact our Equity Scholarship Program is having
“it isn’t hard for me to find a BIPOC leader within NCIA who shares experiences similar to mine. That has made this a motivating and pleasurable experience.”
– Michael Diaz-Rivera, Owner of Better Days Delivery; Colorado State Rep of M4MM
The Equity Workshop Tour is tentatively (based on sponsorship) set for stops in New York, Chicago, and Detroit, synced up withour Industry Socials. More to come. Sponsorship opportunities are available.
Committee Blog: NCIA Committee Work Provides Lasting Value To All – A 2022 Highlight Reel
by David Vaillencourt, The GMP Collective Facilities Design Committee Chair
NCIA Committees are one of the easiest ways that NCIA enables its members to make a positive impact on the cannabis industry. The Facility Design Committee is one of fourteen (14) committees. We are all member-led, meeting monthly (if not more frequently) to discuss needs and to work together to create resources for the community and industry at large. This translates into blogs, webinars, and more. As the new Committee term gets underway, this article provides a recap of our 2022 term. Who are we? What did we accomplish? How can you as an industry operator or NCIA member leverage these resources? Read on!
“As the outgoing Chair, it was an honor to work alongside over a dozen experts ranging from business management solutions, architects, engineers, construction companies, quality management experts, equipment vendors, and more. I want to thank each and every one of you for your tireless contributions.” – David Vaillencourt, The GMP Collective
Accomplishments and key member takeaways
Now entering our fourth year, the FDC put together a significant amount of content for the industry to utilize. I have highlighted the top three impacts that our Committee felt we made. Seeing busy industry pioneers put aside valuable time in their days to consistently show up and create this content for the betterment of you all was a rewarding opportunity in itself and it’s impossible to do justice and recognition to the hours contributed by all.
“The knowledge and energy that is gained from this collection of experts who all have one overriding goal to advance cannabis as an industry both educates and motivates me… The cannabis industry evolves extremely rapidly, by participating in NCIA committees you ensure that you do not get left behind and you have an opportunity to shape the future of cannabis.” – Cary Richardson, Miles Construction
What is VPD / HVACD and why should you care?
Understanding plant dynamics and how they impact the selection and sizing of HVAC systems is critical to the cannabis cultivation space. The design assumptions and directions made during early planning will impact plant quality, quantity, operational costs, and energy expenditures for the life of the facility. It should not be surprising to owners and shareholders that if the first steps of design are made incorrectly, costs to correct original mistakes may exceed the original project budget, and oftentimes that may be too late. It is easy to get lost in the technical details on paper, but our members broke this important topic down for decision makers to better understand in our blog article and webinar “WTF is VPD” (available for free to watch on demand!).
“The details of HVACD get lost at times on me and [Adrian and Kevin] can explain it in a way, that a layman can understand it. David, Brian, and Sean are the other members who are always showing up, we meet at events and they have valuable input on topics of the FDC. We all connected outside of the FDC multiple times and are working on common business opportunities.” – Chris Uhlig, Ceres Greenhouse Solutions
Social Equity is a major problem
Mike Lomuto who led NCIA’s Diversity Equity and Inclusion Committeemet with Shawn Cooney, our Vice-Chair early on to discuss sustainability and DEI issues in the space. Social equity applicants have so many additional hurdles that the FDC members prioritized how to steer our knowledge to solve real problems social equity applicants face. During several of our meetings, we invited a social equity applicant to share where they were stuck. They benefited from having a team of experts to listen, understand their problem, and offer direction and guidance.
“The most meaningful thing that occurred [for me] was participating in a hot seat with a social equity license recipient… We followed up with this individual and it led to us becoming more educated and aware of the issues surrounding social equity in the cannabis industry. Unfortunately, what we uncovered wasn’t that great. Social equity programs in several states are fraught with issues and there are often firms who are preying upon vulnerable people… I have a whole new sense of awareness. It’s opened me to educate myself and others as well.” – Eric Myers, COO, Omega Equipment Supply
But don’t take our word for it – hear it from one of our “hot seat” guests who came to us after having multiple setbacks getting their design plans for a dispensary approved by the city.
“Prior to our meeting with the Facility Design Committee, we had experienced so many setbacks. After my hotseat with the FDC, we were able to identify what we did wrong and why we were having so many delays with the city. [The FDC members] helped us prioritize what steps we needed to take to get our project back on track… We redesigned our floorplan and now we are closer than ever to getting our building permits. We are back on track and I am even more confident in our plan all thanks to the Facilities Design Committee.” – Adolfo “Ace” Castillo Founder/Chief Operating Executive Banyan Tree Dispensary
Networking
Not only do we meet monthly virtually, enabling volunteers from Maine to California and everywhere in between to connect and share knowledge – but many of us made time to connect in person to speak on panels and support each other throughout the year. While the pandemic wreaked havoc on conferences and in-person events, we were able to build lasting relationships thanks to the Committee structure.
“The most impactful aspect of this year was getting to know members at an individual level” – Kevin Quinlan, Mintropy
From left to right Jon Crozier, Chris Uhlig, Adrian Giovenco, Eric Myers, David Vaillencourt, and Cary Richardson all met up in person at MJBiz Con.
Looking forward into 2023
Stay tuned industry! Bookmark NCIA’s Blog page, and subscribe to the newsletterso you can take advantage of the latest webinars and resources published by the FDC and the other NCIA committees. The pathway to a harmonized and equity industry may seem daunting and far away, but rest assured that the hundreds of NCIA members participating in the diverse Committees are working hard to divide and conquer for a unified mission.
Equity Member Spotlight: Checking in on NCIA’s Equity Scholarship Program
by Mike Lomuto, NCIA’s DEI Manager
Three years after the launch of NCIA’s DEI program, we are growing and going stronger than ever. One of last year’s highlights was our DEI delegation that took part in our 10th Annual Cannabis Industry Lobby Days in Washington, D.C., a story we told in this blog, along with many other great and important stories. Now, we are checking back in with a few members to hear about their current progress.
Why has being a member of NCIA been important to you personally?
Anthony Jenkins, Next Level, CEO:
Cannabis is an amazing plant, and I’m passionate about what it can do. NCIA’s members share that passion, which shows in their advocacy for themselves and the plant.
Michael Diaz-Rivera, Better Days Delivery, Owner/Operator:
I was a 5th-grade teacher before starting this business. Being a member of NCIA has allowed me to network with a diverse set of owners across the business spectrum, whether they are social equity operators, and/or novices like me, or established in the cannabis space for years. NCIA has helped springboard me into spaces where growth is guaranteed!
Helen Gomez Andrews, Co-Founder & CEO, The High End:
Building strong business networks is incredibly important in the cannabis industry – and of course, so is advocacy. With this industry and through communities like NCIA, we have an opportunity to reimagine and restructure how business gets done, what board rooms look like, how workers are treated, how to better respect our environment. Being a member has not only helped me strengthen those networks and provided new business opportunities, but it has provided me more channels towards the advocacy that is meaningful to me and my business’ core values.
Why is the Equity Scholarship Program at NCIA important?
Anthony Jenkins:
It is EXTREMELY important because most new entrepreneurs don’t have the money to “test” if a program is going to be beneficial for them. The scholarship gives future cannabis business owners a chance to see the true value that comes with being a member, and once they do, they will continue their membership.
Michael Diaz-Rivera:
Coming from a low-income background and already investing my limited savings 100% into my business, I wouldn’t have been able to participate in NCIA without the scholarship. Not being hindered by my lack of financial resources helped build my confidence in the industry.
Helen Gomez Andrews:
As the founder of a start-up in a regulatory and capital environment with tremendous constraints, the Equity Scholarship Program got me in the door at NCIA, where I otherwise wouldn’t have joined due to the standard price tag. I’ve had a chance to share in, and contribute to, the many different avenues of participation that NCIA offers, make a proper assessment of its impact and properly decide whether or not it makes sense to continue as a member beyond the scholarship period.
What has been your biggest highlight of being an NCIA member?
Anthony Jenkins:
My biggest highlight of being an NCIA member was attending the NCIA’s San Francisco conference in 2021. It was an amazing experience, and we had the opportunity to have a booth, hosted by the awesome team at The People’s Dispensary.
Michael Diaz-Rivera:
My biggest highlight has to be our weekly power hours. Whether learning from industry leaders or having real unapologetic conversations with other emerging business owners, I am walking away from these meetings with priceless jewels of wisdom.
Helen Gomez Andrews:
There are so many! But bringing my kids down to Washington, D.C. for Lobby Days in 2022 was such a highlight. My daughter, who has been a cannabis patient since she was 6 years old, watched as I took a team photo in front of the United States Capitol with a group of people that came together to fight not just for SAFE Banking, but for the federal legalization of a medicine that she uses daily – fighting for her rights and kids just like her – is a moment that our family will never forget.
Have you noticed a shift in Diversity, Equity, and Inclusion at the NCIA since you joined, and if so can you elaborate?
Michael Diaz-Rivera:
I don’t know if I’ve been in NCIA long enough to notice a shift in DEI, but I can say that it isn’t hard for me to find a BIPOC leader within NCIA who shares experiences similar to mine. That has made this a motivating and pleasurable experience.
Helen Gomez Andrews:
I haven’t been a member long enough to notice a shift, but the diversity of the community was noticeable and very appreciated from the onset, and it’s very tangibly not just a talking point.
What is on the horizon for your business in 2023?
Next Level Edibles
Anthony Jenkins:
Next Level has some great things on the horizon. We entered into a partnership with a team in Southern California that will help us increase the quality and efficacy of our infused brown sugar. We are growing our partnerships with dispensaries and delivery services throughout California to broaden our footprint. We are relaunching our website. We will be launching new infused ingredients, and partnering with some of our friends in the industry to bring you amazing infused ready-to-eat products.
Michael Diaz-Rivera:
There is much to be anticipated in the near future for Better Days Delivery and that is why we say, “Better Days Are On The Way.” Most immediately I am excited to announce that I am hiring my first delivery driver and adding more vehicles to my fleet. As I aim to be the best cannabis delivery service in Colorado, I am working to establish contracts with dispensaries throughout the state, nurture the stores I currently deliver for (Shoutout to Native Roots and L’Eagle Services), empower my drivers to be their best, all while serving the community!
Helen Gomez Andrews:
At long last, The High End is on track to introduce our clean-extracted and hand-crafted cannabis products to the Massachusetts market, partnering with independent sun-grown and living soil cultivators and processing in our solventless lab. Our indoor living soil gardens are finally in development too and will be ready to go closer to the end of this year.
Additional thoughts?
Michael Diaz-Rivera:
Thank you Tahir Johnson for starting this program and Mike Lomuto for taking it to the next level. Infinite gratitude to all of my fellow business owners that have helped me to get to this point in my business journey! The Marathon Continues! Better Days Are On The Way
Helen Gomez Andrews:
Immense gratitude to Mike Lomuto for understanding each of our goals in business and advocacy, and ensuring we can contribute to issues that matter to us beyond the obvious DEI work. Without question, DEI advocacy is vital, but we amongst the equity scholars have a diversity of other goals as well. In particular, I’d like to thank Mike for championing Sustainability and organizing a group of members from a working group into an influential body within NCIA that has an opportunity to make a meaningful impact.
Member Blog: Reaching The Highest Common Denominator
by Raina Jackson, Founder & CEO of PURPLE RAINA Self Care Member of NCIA’s Diversity, Equity, & Inclusion Committee (DEIC)
This past September I had the pleasure of lobbying in D.C. for the first time as part of NCIA’s 10th Annual Lobby Days. The lobbying process was demystified for me, and I found that lobbying isn’t easy, but it isn’t that hard when you share your talking points from your heart, representing your own and others’ experiences. I learned that the NCIA delegation shares more common ground than we realized with Congressmembers, especially through their younger and more hip staffers and family members. One senator has a daughter who used to be a budtender and now podcasts about the industry, Senator Gary Peters (D-MI).
I was encouraged by how receptive legislative aides and advisors were to the factual talking points and statistics NCIA provided us to appeal to their sense of reason and fairness. They recognized the public health and economic benefits cannabis has delivered and its potential, without being distracted by useless moral arguments against it. Our team gave an overview of the cannabis landscape and advocated while offering solutions to our varied struggles as cannabis entrepreneurs.
We highlighted that 47 states have adopted some form of cannabis commerce and decriminalization, representing 97.7% of the U.S. population! The majority of the American public demands safe access to cannabis. Why not ride the wave?
Cannabis has been found to be a “gateway” medicine for a more safe withdrawal from opioid addiction, especially crucial to states experiencing high overdose death rates.
We discussed the DEA recently approved funds for even more substantial clinical research on the myriad of proven and potential health benefits delivered by the cannabis plant in a wide range of forms. Yet existing cannabis research is often more robust and held to higher standards than over the counter aspirin. Many pharmaceutical drugs are advertised on TV as the best thing since sliced bread one day (albeit with alarming potential side effects), then next named in TV ads for class action lawsuits for their harmful effects.
A case for an enhanced SAFE Banking Act
The legal U.S. cannabis market is valued at $17.7 billion, with a substantial amount unbanked, causing a public safety crisis. Our discussions illuminated our common ground regarding the public safety improvements and economic benefits that the bipartisan supported SAFE Banking Act will bring to each state choosing to introduce its own customized hemp CBD/low THC, medical, or adult recreational cannabis program.
When compliantly banked these funds will offer financial institutions of all sizes more capital for lending to spur economic recovery and a safer industry. While no financial institution will be required to participate, the risk mitigation and sizable financial benefits can’t be ignored.
SAFE will remove the risk of federal prosecution for compliant financial institutions already offering banking to cannabis businesses, while encouraging more banks and credit unions to join them. Too many existing entities providing cannabis banking services tend to mitigate risk by charging exorbitant monthly fees, financially hobbling startup cannabis businesses or excluding them altogether.
SAFE would also support hemp CBD businesses like mine, still navigated the grey area regarding access to banking, loans, leases/mortgages, and payment processing.
In my follow-up email to the Congressional aides and advisors we met with, I attached a white paper authored by the Cannabis Regulators of Color Coalition (CCRC) offering best practices for increasing financial access to cannabis businesses, prioritizing groups that have been historically underserved by traditional financial institutions and disproportionately harmed by prohibition.
What’s next?
This regulated cannabis industry is so new that we must allow each other some grace as stakeholders. As cannabis advocates, we have learned that “calling people in” for discussions on the benefits of the SAFE Banking Act and comprehensive cannabis reform is more effective than “calling them out.”
Elected officials and their staff don’t understand first-hand what we experience as cannabis entrepreneurs, and many care more than I expected. Lobbying and sending them emails on new and modified policy recommendations helps them to be well-informed enough to support us. My highlight was meeting with a CA legislative aide who is a fellow CA native and sincerely wanted to be updated on my progress and pain points. We all had a laugh about him agreeing to let me go into “the weeds” concerning the licensing process, pun intended.
Since Lobby Days, President Biden announced the upcoming FDA and DEA review of cannabis as a Schedule 1 drug. It could potentially be de-scheduling within the next 12 to18 months! However, to date, only seven states provide licensing priority, exclusivity, or set aside a percentage of licenses for qualified social equity applicants. The same way the SAFE Banking act should be passed with amendments fostering equity, state, and future federally legalized cannabis programs must include targeted equity programs to help level the playing field. I look forward to returning to D.C. in May for 2023 NCIA Lobby Days!
Raina Jackson is a multifaceted cannabis brand strategist, product developer, and advocate, and is the founder & CEO of PURPLE RAINA Self Care, the culmination of her love for beauty wellness products, the color purple, and the musical and cultural phenomenon Prince. For the past 7 years she has worked in the San Francisco Bay Area cannabis industry in sales management, field marketing, distribution, and product development, and a verified SF Cannabis Equity applicant in Oakland and San Francisco. For the past year she has served on the NCIA Diversity, Equity, & Inclusion Committee and the Regulatory Compliance subcommittee.
Raina has over 15 years of experience in beauty/wellness care product development, sales/ marketing management, and product education at Maybelline, L’Oréal Professional, and Design Essentials Salon System and has taught cosmetology at The Aveda Institute in SoHo NYC. A San Francisco native, Raina earned a B.A. degree in cultural anthropology and linguistics from Stanford University and an MBA in marketing and management from NYU.
The NCIA DEI Delegation Reports Back from Lobby Days in D.C.!
by Mike Lomuto, NCIA’s DEI Manager
On September 13-14, Social Equity applicants and operators from around the country traveled to Washington D.C. as part of NCIA’s Lobby Days. Lobby Days provides the opportunity for NCIA members to speak directly with national lawmakers about the issues most important to small cannabis businesses – from SAFE banking to federal de-scheduling. This first-ever DEI delegation was supported by our members’ contributions to the Social Equity Scholarship Fund, and was the first of its kind – intentionally bringing diverse voices from our membership to Lobby Days.
Due to the pandemic, this was our first in-person Lobby Days since the launch of our DEI Program in 2019, and the launch of our Social Equity Scholarship Program in Spring of 2020. Since then, we have been coalescing our members’ diverse voices into clear perspectives and opinions on the direction of our industry. Something that our DEI Program is very proud of is that at this year’s Lobby Days we supplied talking points with the purpose of creating a proper impact.
Some of these talking points were sourced from the excellent white paper on SAFE Banking by the Cannabis Regulators of Color Coalition, which provides very thorough recommendations including: Requiring federal banking regulators to identify best practices to achieve racial equity in financial services; and Clarifying that cannabis criminal records are not an automatic red flag. Notably, this group which has some of its roots from NCIA’s very first Catalyst Conversation over two years ago, and its Treasurer, Rafi Crockett, now serves on NCIA’s DEI Committee.
The Social Equity applicants and operators comprising the delegation spoke directly to lawmakers on the kind of real changes we need for DEI and social equity to become a reality in our industry, in particular regarding SAFE banking. From their experience as professionals and advocates in the industry they were able to provide much-needed insight into how legislation impacts owners, operators, budtenders, and the social equity community in particular at the ground level. These conversations proved to be the missing link for a lot of these elected officials on Capitol Hill who stated their support for making a more equitable industry and righting the wrongs of the war on drugs, but lack real-life experience on the matter.
Here are some of the highlights from the delegation:
“My highlight was meeting with a CA legislative aide who is a fellow CA native and sincerely wanted to be updated on my progress and pain points. We all had a laugh about him agreeing to let me go into “the weeds” concerning the licensing process, pun intended.”
Raina Jackson, Founder & CEO PURPLE RAINA Self Care
“As I moved from meeting to meeting, one thing became crystal clear; there’s a knowledge gap that surrounds this plant, a gap fueled by learned behaviors, stigmas, pain, gain, and loss. This message rang clear to me from members and staff of both the senate and house…”
Toni MSN, RN, CYT, Toni
NCIA Education Committee and Health Equity Working Group
“From my experience, I learned that people make a difference. The people who make the laws don’t know everything and us providing information and answers can and may make that difference”
LaVonne Turner, Puff Couture, LLC
NCIA DEI Committee
“NCIA Lobby Days was an interesting peek behind the curtain of how the sausage is made in D.C. It became easier to see why some politicians seem so ill-informed about cannabis. Elected officials may themselves come from a state with draconian laws and politics about cannabis. Mix that with their staffers/advisors being recent college grads from other parts of the country with those same conditions, and you have a recipe for horrific policy. What was refreshing however was the amazing amount of knowledge that some of those staffers did possess both about cannabis policy and the plant itself. Not surprisingly they without fail worked for pro-cannabis congresspersons.”
Dr. Adrian Adams, CEO Ontogen Botanicals
NCIA DEI Committee – Subcommittee Regulation
“In each session, as I spoke about equity in underserved communities, the representative(s) appeared as it was the first time hearing the phrase Safe Equitable banking. Through their perplexed faces, I saw them registering that safe, equitable banking is needed.” – Toni
“I’ve never done something like this before sounds so cliche but it’s the best way to describe this eye-opening experience of speaking directly to Congressional staff about what it means to be a small business owner in the cannabis space. The challenges and hurdles that we have to deal with because of 280e and cannabis being a “controlled substance” are real and huge burdens to us as small businesses and owners of color. The lack of banking and financing is exponentially more damaging and difficult to black and brown communities because of our historic lack of fair and equitable access to this vital resource. This lobby days opportunity strengthened my resolve to be a loud voice for the Latino and black communities to ensure we have our seat at the table from this day forward!”
Osbert Orduña, The Cannabis Place
“Everyone we met with was compelled by the financial and public safety benefits that SAFE would offer under any form of cannabis decriminalization, from CBD with low-THC to adult consumption” – Raina Jackson
All in all, the consensus was that it was a valuable experience and folks would take the time to lobby again and encourage others to do the same. Lobbying in DC is one part of many strategies that have the potential to spark policy change at the federal level and without a doubt, getting a chance to speak personally to experienced industry professionals with a social equity lens was invaluable for the policymakers.
Next year we are pledging to double or even triple our DEI delegation. If you’d like to be a part of making this happen, we are already accepting sponsorships as we plan for 2023’s event, NCIA’s 11th Annual Cannabis Industry Lobby Days on May 16-18, 2022.
If you did not get a chance to read our blog post before the delegation left for Washington, D.C. to participate in NCIA Lobby Days as part of the first-ever Lobby Days Social Equity Scholarship delegation, you can read more here.
The Pathway to Greater Equity in New York’s New Adult Use Cannabis Market
by Mike Lomuto, NCIA’s DEI Manager
Over the past few months, the NCIA has been hard at work in social equity and the emerging New York market. NCIA’s Diversity Equity and Inclusion Committee has organized an ongoing roundtable discussion with various ally organizations including NYC NORML, Minorities for Medical Marijuana (M4MM), Minority Cannabis Business Association (MCBA), The People’s Ecosystem, the JUSTUS Foundation, Black and Brown Economic Power in Cannabis (BBEPIC), and the Social Equity Co-Chairs of the New York City/Hudson Valley Cannabis Industry Association (NYCCIA/HVCIA), and Unified Legacy Operators Council (UNLOC), and social equity cannabis business owners from existing markets.
These discussions have centered around the proposed New York regulations, policies, and concerns. We all share a common goal to provide sensible and workable solutions to the state famous for “stop and frisk” in alignment with the goals of New York, to create a diverse, inclusive, and socially equitable cannabis industry.
What emerged from our roundtable discussions over the last few months are robust proposals regarding key regulatory changes and solutions to the New York regulators as they deliberate their proposed rules that will affect the industry. If our proposed comments were to be adopted, we are confident New York will see more equitable pathways for folks who potentially would be left behind otherwise. In particular, we strongly recommend their definitions of justice be broadened and we included proposals to that effect. We also encourage the regulators to create more pathways and solutions for legacy operators still in the shadows to be able to enter the legitimacy of the industry. Further, we proposed sensible changes to align New York to more national standards in labeling, advertising, packaging, licensing, and operations.
Our coalition roundtable based our recommendations on combined decades of experience on the frontlines and in the communities that will be impacted by these regulations. Our proposals are workable solutions the state of New York can incorporate in order to solidify equity in the industry as they come online.
As a roundtable coalition that is New York focused but with national reach, we’re proud to be able to work alongside our allies to create a think tank that will affect future markets beyond the big apple as they struggle with the concept of good and effective social equity programs. For far too long, the road has been paved with good intentions that fall short of the destination needed for true social equity. Our New York Social Equity Roundtable has brought together people from various sectors and organizations who fundamentally understand that and who are passionate about bridging the disparity all too prevalent in the cannabis industry.
Social Equity Members Head to D.C. to Lobby for A More Inclusive Industry
by Mike Lomuto, NCIA’s DEI Manager
NCIA is proud to announce that for the first time, thanks to the support of our members, we have awarded nine Lobby Days Equity Scholarships to support our Social Equity members with travel expenses to attend NCIA’s Lobby Days in Washington, D.C., on September 13-14. These Social Equity applicants and operators from around the country are leaders and active contributors to NCIA’s Sector Committees, our DEI Initiatives (particularly policy-related ones), and to advocacy efforts in their local and/or state municipalities.
Lobby Days provides the opportunity for NCIA members to come together to advocate for the issues most important to small cannabis businesses — from SAFE Banking to federal de-scheduling — and to share their personal stories with national lawmakers.
Our delegation includes:
Dr. Adrian Adams, Ontogen Botanicals CBD Ambrose Gardner, Elev8 LaVonne Turner, Puff Couture Michael Diaz-Rivera, Better Days Delivery Osbert Orduña, The Cannabis Place Raina Jackson, Purple Raina Toni MSN, RN, CYT, Toni
We asked our DEI delegation why attending Lobby Days was important to them. Here are some of their responses:
“I want our elected officials to hear my story which gives a voice to so many others, who like me, grew up in areas that have disproportionately borne the brunt and weight of cannabis enforcement. Children and young adults, whose only crime was being poor and of color, faced the indignity of being stopped and frisked hundreds of times. Now after paying the ultimate entry price, we can not get in the door of the cannabis industry because of a lack of banking and lending opportunities that continue to shut us out of the cannabis market.
The de-scheduling of cannabis, the passing of SAFE Banking, or the repeal of IRC 280E all would immediately increase the opportunities for small cannabis businesses like mine to have a true opportunity for success, growth, and economic empowerment of our communities.”
– Osbert Orduña, The Cannabis Place
“As the industry grows and moves towards federal legalization, our elected officials must hear constituents’ voices. It’s important that my energy, face, and voice are present, representing the need for safe banking, health equity, and policies that support federal legalization. As states continue to legalize adult recreational cannabis usage, there will be an increased need for cannabis health equity to address the social, political, and economic conditions in underserved communities.
I’m committed to increasing awareness of the importance of education, employee retention, and community wellness in these communities.”
– Toni MSN, RN, CYT, Founder of Toni NCIA’s Education Committee & Health Equity Working Group
“I have begun to work on lobbying at a local level. Federal legalization, descheduling, decarceration, social equity, health equity, and safe banking are some of the areas that I would like to learn how to lobby for at the national level.”
– Michael Diaz-Rivera, Owner/Operator, Better Days Delivery
“We should not stop at using the SAFE Banking Act merely to provide legal and regulatory protection for financial institutions. That will enable, but not ensure, increased banking services for minority-owned cannabis and hemp companies.
As the regulatory gaps between state and federal governments are addressed, there must be mechanisms to prevent predatory practices while opening access to capital.”
– Dr. Adrian Adams, Ontogen Botanicals CBD
It is important to the NCIA, and its membership for Main Street Cannabis to continue to develop in as diverse, equitable, and inclusive a manner as we can achieve. As the industry has thus far failed at creating tangible Social Equity, it’s important to ensure our efforts this September to include these voices and the communities they represent.
This is where the DEI delegation comes in.
As the official DEI delegation, the Lobby Days Equity Scholarship recipients will provide a foundational understanding of matters related to DEI in the industry for all NCIA members present at Lobby Days. The DEI delegation will ensure that there are members present speaking up on matters of DEI from within an important national trade association and within the context of Main Street Cannabis.
NCIA’s Government Relations team has organized a full day of meetings with Lawmakers and their Offices. New citizen lobbyists will receive online training before the event and are grouped together with experienced industry leaders who can help them find their voice. There will be an opening networking reception for all attendees, and a closing event featuring some of NCIA’s most important allies in Congress.
We are still accepting sponsorships to fully fund Lobby Days Equity Scholarships to ensure our recipients have their travel and lodging expenses covered while in Washington, D.C. Contact MikeLomuto@TheCannabisIndustry.org for more information.
Let’s keep building a better industry together, as we bring our voices to Washington, D.C.
Equity Member Spotlight: Osbert Orduña – The Cannabis Place
NCIA’s editorial department continues the Member Spotlight series by highlighting our Social Equity Scholarship Recipients as part of our Diversity, Equity, and Inclusion Program. Participants are gaining first-hand access to regulators in key markets to get insight on the industry, tips for raising capital, and advice on how to access and utilize data to ensure success in their businesses, along with all the other benefits available to NCIA members.
Tell us a bit about you, your background, and why you launched your company.
I am a first-generation Latino of Colombian descent, Spanish was my first language and my dad spent most of my youth incarcerated. I grew up in NYC Public Housing projects, and I have first-hand knowledge of the indignity of what it feels like to personally be stopped and frisked nearly 100 times which is what happened to me as a kid and young adult for doing nothing else than being a poor Latino growing up in the hood. I was an Education Opportunity Fund scholar and the first in my family to go to college, where I received a degree in business, and a graduate certificate in law. I earned the designation of Disabled Veteran while serving in Iraq with the United States Marine Corps, and I am also a 9/11 first responder. I retired after a career in public service, and have worked as an entrepreneur for over 10 years, and know what it takes to start a business from scratch, without a rich uncle, generational wealth, or rich financial backers.
In late 2020 and early 2021, I had the opportunity to visit 50 non-MSO recreation and medical dispensaries in five states on the east and west coast. I wanted to learn more about dispensaries and best practices across the industry, but my trip opened my eyes to a different reality. Forty-nine of the dispensaries were owned by white males and one was owned by a white female, not one owner looked like me or shared a similar background. None of these dispensary owners had been stopped and frisked hundreds of times for no other reason than just because they lived in an area with historically high rates of arrests and enforcement from over-policing. Yet they were now engaged in an industry that seemed to exclude us. My trip left me sad but determined to enter the cannabis market so that people who look like me who came from the struggle of the streets, and were collateral damage in the war on drugs could have a chance. I was determined to create a positive example for Latinos and others to follow.
What unique value does your company offer to the cannabis industry?
The Cannabis Place offers a unique value proposition which is our commitment to launching as a union cannabis dispensary on day one. As of yet, we are the only dispensary in the state of New Jersey and the nation to propose this. By launching our business as a unionized shop we are being a partner to our Jersey City, NJ community. Our value proposition promises that we will be a responsible and proactive member of the community that provides union career opportunities with true living wages that will empower our team members to provide upward mobility for themselves, their families, and the greater community. Furthermore, we are engaged as a Workforce Development partner with Cornell University, the Workforce Development Institute, and Hudson County (NJ) Workforce Development Board. With these partnerships, we will develop standardized training modules that will be utilized to train prospective dispensary workers and provide opportunities for those seeking cannabis careers in this new and emerging industry.
Our mission: To provide high-quality cannabis to clients with a consistent product and first-class service they can trust. To build our brand on the core values of client service and care, while maintaining the highest standards of quality, integrity, and community outreach.
What is your goal for the greater good of cannabis?
As the CEO of The Cannabis Place, our primary goal for the greater good of cannabis is to advocate and support a proactive approach to adult-use by providing a local and safe environment to dispense cannabis products. We operate as a social impact cannabis brand and are dedicated to providing consistent access to safe and reliable cannabis products that are ethically grown and sourced. Our aim is to launch the first unionized cannabis dispensary in New Jersey, leading by example, and demonstrating to other businesses that true success is based on placing people over profits.
Our goals are as follows:
Be an accelerator for generational wealth-building opportunities among our employees from the community
Be a reliable source for cannabis education and awareness
Utilize our Community Impact grants to assist and support outreach in areas that have been disproportionately impacted
Our advocacy at The Cannabis Place is based on workers rights, especially organization, fairness and quality healthcare. We believe that it should be easier for people in all job fields to organize. At The Cannabis Place we support the implementation of legislation that will raise the minimum wage floor for all workers in our community, to provide for true living wages that place people over profits. Workers in all industries deserve more from the moment they are hired. Like many others I grew up as part of the working poor, in public housing with limited minimum wage job opportunities, without healthcare and with minimal alternatives to life on the streets. At The Cannabis Place we believe that by providing our workforce with union careers with true living wages and full benefits, our team members, their families and their communities will feel the immediate difference of financial stability, long-term growth, and the impact of upward financial mobility to help them support their family and to build a better life.
What kind of challenges do you face in the industry and what solutions would you like to see?
Latinos are consistently underrepresented in terms of business owners throughout all industries. Now when you focus specifically on cannabis and look at a national level, just 5.7% of all license types are held by the Hispanic community. I have seen challenges in the cannabis industry in two key areas, access to capital and the real estate market. It takes money to make money so if you grew up poor, without generational wealth, no rich uncle, no hedge fund connections or oligarchs to call on, how do you raise funds to have the millions that are needed to launch a dispensary or grow? Next and along the same lines is real estate. A lot of landlords won’t lease to cannabis businesses but unfortunately, our experience has been that again a predatory market exists where cannabis rental rates are 2 to 10 times the normal lease rates for the area. The other option is to buy a commercial parcel which brings us back to issue #1 – access to capital. I am ever the optimist, and I see the Latino community growing in the legal cannabis industry as entrepreneurs, c-suite members, and as leaders in the industry bringing our unique insight and sabor to the industry while creating opportunities for generational wealth for our community. In order to get there, we need to bridge the gap through social equity grants and loans that can help Hispanic cannabis entrepreneurs raise enough capital to start their business, and receiving financial education is also crucial for Hispanic entrepreneurs in multiple phases of the cannabis business planning timeline.
Why did you join NCIA? What’s the best or most important part about being a member through the Social Equity Scholarship Program?
We are a Disabled Veteran and Latino-owned company with a core focus on community impact through social impact so the ability to be a Social Equity Scholarship recipient in an organization like the NCIA, a group who are actually dedicated to ensuring that small cannabis businesses have a seat at the table in Washington, D.C. and beyond, was super important to us. We look forward to learning new information and utilizing networking opportunities to help us grow and succeed in the cannabis industry.
The fact that NCIA is leading change to protect the legal cannabis industry, advocate for our state laws, advance federal policy reforms, and to make this a more inclusive and prosperous space by working together to defend the responsible cannabis industry. Creating more opportunities for small businesses rather than just the wealthiest few is the most important thing for us as members of the Social Equity Scholarship Program.
The Cannabis Place 420 Corp is the first ever Disabled Veteran and Minority Owned Business enterprise to successfully navigate the Jersey City, NJ municipal cannabis dispensary approval process in this new and emerging cannabis market.
Equity Member Spotlights: Where Are They Now?
Where are they now? This month, NCIA’s editorial department continues the monthly Member Spotlight series by following up with three of our Social Equity Scholarship Recipients as part of our Diversity, Equity, and Inclusion Program. Participants are gaining first-hand access to regulators in key markets to get insight on the industry, tips for raising capital, and advice on how to access and utilize data to ensure success in their businesses, along with all the other benefits available to NCIA members.
First off, we have rebranded. We are now Cannvas Events. The name change was part of our evolution and maturation as a startup. As we scaled, more resources became available for things like branding. We brought in Greg Hill of Brand Birth to deploy the science of branding and the end result was a new name, new logo, and new understanding of where we were situated in the regulated cannabis ecosystem. The transformation led to the planning and production of our signature Cannabis Event 2.0 offering, the inaugural Saturnalia Canna Carnival, taking place at the Trinity Health Arena in Muskegon, MI on August 2oth. We are powering a traditional indoor/outdoor carnival – rides and attractions included – with a hassle-free, normalizing consumption solution. If you’re in the Midwest, come join us as we celebrate the first year of an iconic, perennial cannabis festival. Tickets and info at cannvasevents.com and follow us @saturnaliacannacarnival
Would you like to share anything that came out of being in the Spotlight previously?
The Spotlight feature presented tremendous value. The first year of the cannabis startup journey is devoid of financial revenue. Unless you’re needle-in-the-haystack lucky, it’s not even a consideration. The money is flowing in the opposite direction. So, the only available revenue, or currency, are the relationships. If you’re fortunate, these become renewable resources upon which you can draw repeatedly, and managed properly, they have no expiration date. You can bank them like any currency and you have much more influence on their stability, than on fiat currency. For me, that one relationship was with Michael Schwamm, who leads the Duane Morris cannabis practice out of New York. Michael opened doors for me and got me into rooms that I was previously unaware existed. That access has made all of the difference for me, personally, and for Cannvas Events. And had it not been for the Spotlight, I would have never been in position to enjoy that access.
Endo Industries
Since the last spotlight, you’ve joined the DEI Committee and its Regulatory Subcommittee. Anything you’d like to share about that experience thus far?
I’m impressed by the brilliant folks on the committee, and their dedication to making cannabis equitable. It takes time out of our grueling work days to contribute time on these committees but the contribution to making the industry better is crucial during these developmental years of cannabis. Perhaps our current misguided, harmful CA cannabis policies could have been prevented with more early participation from stakeholders who are stewards of the plant. However, there were many factors involved with the way CA policies were created, including special interest money from those who don’t care or want to see the industry fail.
It’s been a painful journey living through the consequences of these challenging policies as a cannabis operator. It takes a long time to change once it’s been passed. However, companies who are willing to work together in these important processes will survive and write a new path to move forward. Most of us can’t wait anymore for things to change so we need everyone’s active participation now, whether it’s writing an email to your constituents or being a part of NCIA!
California cannabis seems to be going through terrible challenges. Is there anything you’d like to share about what you’re seeing, or about some of the solutions our members can support with?
Overburdensome taxes and high barriers to entry for licensing throughout the state are most obvious right now. The lack of diversity and equity, consumer education, state and federal funding for further research and development also play a huge role in CA’s struggles. I’m frustrated that the State doesn’t understand that those who have been dedicated to the industry, collaboration and this plant are the only ones who can truly guide this industry forward.
NCIA members can lend support by truly including legacy, equity, and other diverse teams into your conversations and partnerships, and opening our eyes to value brought to the table by different communities. I would also encourage members to think about ways we can create awareness to our consumers to make better buying decisions. We have left all the medical properties of cannabis while legalizing, and that’s also why the industry is failing. Lastly, we need to keep pushing for more consumption lounges and events!
At Endo Industries, we built our company on principles of collaboration, science, equity and inclusion. Most notably, we offer critical supply chain support through our tissue culture services, and certified virus-free clean clones for growers, breeders and brands. If you know good operators who could benefit from our support, please send them our way. I cannot stress enough that the work Endo is doing is crucial for the success of the supply chain right now.
Would you like to share anything that came out of being in the Spotlight previously?
We’ve gotten great exposure for being featured in Spotlight. Endo and myself are more internet searchable, which in this day in age means we are real people!
People started sharing the link to the Spotlight to use as an introduction to Endo and myself as a founder. We’ve been told by clients who decided to work with us because they came across the feature when researching Endo. It solidified their desire to pick us because we are bullish about our values because our business model is strategic and collaborative.
It’s great to be co-signed by a credible organization like NCIA, and it goes a long way for a small business that doesn’t have an abundance of marketing and PR resources. I’ve hid in the shadows for far too long. My journey and passion for cannabis needs to be told and celebrated. Endo as a company needs exposure so we can reach a larger audience. I’m grateful for NCIA and look forward to our continued relationship.
Next Level Edibles
What’s new in the world of Next Level Edibles?
There is a lot new in the world of Next Level since our Equity Spotlight in September of 2021. In December, we had a booth, sponsored by the awesome team at The People’s Ecosystem, in Moscone Center at NCIA San Francisco. It was our first time attending an expo, let alone having a booth, and it was a great opportunity to grow our brand while creating relationships for future business opportunities. In the second week of the new year we launched our 1000 mg full spectrum coconut oil in Ivy Hill Oakland. And, later that month, we were welcomed into the Third Cohort of Momentum, Eaze’s Cannabis Business Accelerator. Two weeks before classes began, in early April, we launched our infused fast-acting brown sugar in 7 Star Holistic Healing Center. And in May, we attended MJ Unpacked NYC with other graduates of Our Academy.
California cannabis seems to be going through terrible challenges. Is there anything you’d like to share about what you’re seeing, or about some of the solutions our members can support with?
California Cannabis is facing challenges on many fronts. Countless unnecessary hurdles to legal entry, political red tape, and excess packaging waste to name a few. But the biggest challenges are around security. Every week there is news of a new dispensary, farm, distributor, and friend being burglarized. High tech security systems, gates, and cameras are no match for organized thieves and slow police responses. Until we can get a portion of our excessive taxes dedicated to funding police divisions that specifically targets cannabis thieves, the best solution to combat this is to support your favorite brands by purchasing their products through legal cannabis retail sources.
Would you like to share anything that came out of being in the Spotlight previously?
Being in the Spotlight helped our company tremendously. It allowed us to grow our cannabis network as plant-touching and ancillary companies reached out from all over the country. In addition, the visibility it provided us helped connect with the team at The People’s Ecosystem which led to our booth at NCIA’s Cannabis Business Summit and our new supply chain partners. It provided the traction we needed to help us get to the next level.
Equity Member Spotlight: Banyan Tree Dispensary – Adolfo “Ace” Castillo
NCIA’s editorial department continues the Member Spotlight series by highlighting our Social Equity Scholarship Recipients as part of our Diversity, Equity, and Inclusion Program. Participants are gaining first-hand access to regulators in key markets to get insight on the industry, tips for raising capital, and advice on how to access and utilize data to ensure success in their businesses, along with all the other benefits available to NCIA members.
Tell us a bit about you, your background, and why you launched your company.
My name is Adolfo Castillo. People who know me call me Ace. Before I started my first cannabis business, I had a 10-year career in the banking industry. I started in a call center as a customer service associate. I then moved into a traditional banking center where I learned sales and eventually became the assistant manager. It was at the end of my tenure in 2008 that my Tia Eloise was diagnosed with terminal cancer. At the request of my mother, she asked me to get some cannabis in hopes that it would help her sister eat. Although it did not cure cancer, it really helped her appetite and gave her a bit of relief. Unfortunately, my Tia Eloise lost that battle, but it was the relief that I was able to provide that helped bring me peace when she passed away. This all happened around the same time that bill SB 420 was signed into California law, establishing statewide guidelines for Prop. 215. This law paved the way for cooperatives and collectives to begin operating legally in my city. It was at that moment that my love for cannabis became a passion. I felt a need to help more people gain access to cannabis, so I partnered with a friend of mine who sold weed and I took what I had learned about business and applied it to opening my first medical cannabis dispensary.
What unique value does your company offer to the cannabis industry?
I named the dispensary Banyan Tree after an experience I had in Maui about 13 years ago. It was my first visit to Maui so I decided not to bring any cannabis products to avoid any problems at the airport. When I arrived, I asked a few locals where I could find some good smoke and they all pointed me to the Banyan Tree. It was true. As soon as I found the Banyan Tree, I could tell this was the place to be. The smell was in the air and I met some really nice Hawaiians who were happy to hook me up. I want our guests to have the same experience when they visit our dispensary. Banyan Tree is a destination. A place where friends can meet to find quality cannabis.
As a local native, I understand the cannabis culture in my town. The legacy market has thrived for so long in Fresno. One of our biggest challenges will be convincing medicinal users and cannabis connoisseurs to buy their cannabis from a licensed facility and not from the streets. In order to create the best experience possible, it starts with a well-trained, knowledgeable staff. I am lucky to have two educators on my team who have helped me put together a robust employee development program that will ensure that the Banyan Tree staff will be primed for success.
My goal for Banyan Tree is to be the #1 dispensary to work for. I truly believe that the success of your business relies heavily on its employees. I want our employees to have purpose and feel proud of the work they do. Banyan Tree was built upon the idea of helping our surrounding community achieve wellness and enjoyment through cannabis. When you come to Banyan Tree, you will not be rushed, you will feel safe, your questions will be answered, and the price you pay will not shock you.
What is your goal for the greater good of cannabis?
I am hopeful that I will see full legalization in my lifetime. As a cannabis business operator, I would like cannabis to be recognized as a normal commodity and not this taboo substance that has so much negativity around it and red tape. As a business owner, I would like cannabis commerce to transact and be accepted without any special rules in regards to banking and filing federal income tax. As outdated stereotypes are finally fading away, more and more consumers view cannabis as an integral part of their health and wellness routine. I’m confident that in 20 years we will look back at the history of cannabis and just laugh at all the nonsensical rules surrounding cannabis in the early 2000s.
What kind of challenges do you face in the industry and what solutions would you like to see?
Most cannabis operations are running all-cash businesses because mainstream, national banking institutions are not willing to support a federally illegal industry. A small number of state-chartered banks and credit unions have offered financial services to compliant operations, but establishing these relationships continues to be a significant challenge for operators.
An equally frustrating financial challenge is IRS Tax Code 280E, which states that “no deduction or credit shall be allowed in running a business that consists of trafficking a controlled substance.” This archaic code impacts cannabis businesses across the nation, causing unnecessary fiscal and operational stress.
Why did you join NCIA? What’s the best or most important part about being a member through the Social Equity Scholarship Program?
I joined NCIA through the Social Equity Scholarship program to extend my network of cannapreneurs and to help develop best practices and guidelines that will shape the future of our industry. I would say for me, the best part of being a member of NCIA is the synergy. One of my favorite parts of the program is the “Power Hour.” Each week, Mike Lomuto hosts a zoom meeting dedicated to Social Equity members. It is where we have an opportunity to share ideas and find solutions to the issues we all face in our industry. I am very capable, but I recognize that by fostering relationships and collaborating with others in my industry, I can achieve far more than I could ever achieve on my own.
Video: NCIA Today – Thursday, June 16, 2022
NCIA Director of Communications Bethany Moore checks in with what’s going on across the country with the National Cannabis Industry Association’s membership, board, allies, and staff. Join us every other Thursday on Facebook for NCIA Today Live.
Equity Member Spotlight: Ontogen Botanicals – Dr. Adrian Adams
NCIA’s editorial department continues the Member Spotlight series by highlighting our Social Equity Scholarship Recipients as part of our Diversity, Equity, and Inclusion Program. Participants are gaining first-hand access to regulators in key markets to get insight on the industry, tips for raising capital, and advice on how to access and utilize data to ensure success in their businesses, along with all the other benefits available to NCIA members.
Tell us a bit about you, your background, and why you launched your company.
Hello, I’m Adrian Adams, EdD. I spent a decade teaching Biology and Chemistry as well as coaching football. I chose to spend several years as a stay-at-home dad (the hardest job by far) and then worked in the pharmaceutical industry. I know many of the physicians in my area. While at dinner one night with a couple of doctors, the conversation revolved around having to combat the misinformation that patients come in with from “Dr. Google.” Minutes later, one doctor asked the others what they were saying to the increasing number of patients who come in asking about cannabis therapy. There was a prolonged silence until another doctor said “I just tell them I don’t know anything about that and to look online.”
Another doctor said, “me too.” The irony within the few-minute span was worthy of a fork drop. The FDA has approved CBD as a medicine. To me, not educating a patient about a legal, safe, and effective treatment option meant they just didn’t have the cannabis knowledge. That also meant more legal, safe, and effective products needed to be made for doctors and their patients. In that moment, Ontogen Botanicals CBD was born.
What unique value does your company offer to the cannabis industry?
We offer reduced costs, which can be a barrier to entry for consumers. And a deep knowledge of the intersection between cannabis and medicine. Physicians are a choke point for the industry that is overlooked. Simply put, doctors are good people. Most of them have simply had zero training on the endocannabinoid system as it was only identified in the 1990s. Ontogen Botanicals believes if they knew better, they’d do better. We offer doctors the information to make an informed decision on the utility of cannabis for their patients. We also offer the ability for doctors to provide legal cannabis products for their patients right in their office as part of a sound treatment plan.
Ontogen provides effective CBD products that are truly full-panel lab tested for safety. We strongly believe in starting at a low dose, which also lowers cost. Using the least medication necessary is part of medical training. Low-dose products work for many people and reduce the cost barrier of entry to try CBD and other cannabis products.
What is your goal for the greater good of cannabis?
We want to increase the healthcare provider and patient knowledge of what this plant can do, as well as provide quality of life-improving products. Now we’re expanding to help the population at large. Medically speaking, cannabis is as good as advertised. The more people use it, the more legitimate the industry becomes.
Cannabis gets a bad rap for being a gateway drug to the opioid crisis. In fact, doctors are beginning to address the pain that often starts and underlies chronic opioid use. You cannot pull opioids and not address the pain that drives many folks back to opioids. Regulated cannabis can reduce pain without the many harmful side effects of opioids – especially unregulated heroin.
With industry growth, and Ontogen Botanicals‘ growth, will come the capital for Ontogen to address the challenges that poverty creates for people who may have much less access to healthcare and prescription drugs to get the medicine they prefer. There is enough money in cannabusiness to use it for social good.
What kind of challenges do you face in the industry and what solutions would you like to see?
A big problem for any small business is finding the right people to do business with. Minority business owners face discrimination and mistrust when trying to do business in general. Now add cannabis to the equation. I’ve been asked for $5K just for the right to open a business checking account.
Groups like NCIA, MCBA, and Minorities for Medical Marijuana help us find each other to do business with as well as bridge the gap between us and traditional business communities like banking for access to capital.
This industry has shown the ability to help remediate the cannabis criminalization harms done to minorities during the war on drugs. Big tobacco and many other industries are already investing and awaiting federal law changes. I fear that once the flood gates open to large companies investing billions of dollars, the feeding frenzy will create an extinction-level event for smaller minority-owned companies. We need federal and state-level legislative dams in place before then to protect minority-owned smaller businesses.
Why did you join NCIA? What’s the best or most important part about being a member through the Social Equity Scholarship Program?
I joined to try to help advocate for social equity and social justice for minorities to have a once-in-a-lifetime chance to start an industry. The best part about the NCIA Social Equity program is that it brings minority entrepreneurs together weekly to support each other. We’ve locked elbows, pick each other up in hard times, and celebrated the good.
Video: NCIA Today – Thursday, May 19, 2022
NCIA Director of Communications Bethany Moore checks in with what’s going on across the country with the National Cannabis Industry Association’s membership, board, allies, and staff. Join us every other Thursday on Facebook for NCIA Today Live.
Previously, in part 1 and part 2 of this series, the DEIC examined the problems inherent in existing social equity programs and the merit for federal social equity in regulating interstate commerce. The DEIC also examined the key components of a proposed framework to address these challenges, how to define social equity federally, and the merit of determining the types and numbers of permits to be issued.
Sadly, as written currently, all proposed federal bills fail to meet the critical objective of creating as much NEW generational wealth for the most number of those disparaged from participating in the legal cannabis industry because of the socioeconomic impacts of more than 80 years of federal marijuana prohibition and due to the barriers to entry created amid state regulatory regimes.
To conclude this policy framework proposal, the DEIC will look at the key considerations for a federal program to ensure it functions as designed and how this framework can create social equity technical assistance, qualification, and a phased approach of implementation to ensure that social equity operators have ample time to qualify, have adequate funded, and are set up for success with an equal starting line in the new interstate commerce industry.
Qualifying Social Equity Operators – Federal Technical Assistance Program
It is imperative that any federal social equity framework helps the industry and their new partners, by ensuring permit holders are qualified in both cannabis and business backgrounds, and by helping them bring financing to the table to start a permitted interstate commerce cannabis business that can be as ready, as quickly as possible, to help import, export, and transport cannabis between the States.
To carry out these provisions in the policy, we recommend that amendments to any federal act include:
Requiring that qualified social equity interstate commerce permit holders:
Have a path to educational qualification (training and development)
Can qualify with equivalent experience
Can pre-qualify for the SBA’s funding once they obtain education or equivalent experience (funds issued upon state licensing approval)
Obtain the majority of initial permits offered for interstate commerce (95%)
In alignment with how long and at what percentage the current industry has been dominating the ownership of licenses
Entities should have 51% or more verifiable ownership and control by a social equity qualified applicant.
Advisory Committee to determine how to verify the 51% social equity ownership
Providing social equity qualified permit holders exclusivity for at least 5 years to ensure the qualifying process takes place equitable to the average time in which the industry developed for adult use without considering social equity.
Mandating laboratory testing as national permitting for interstate commerce to work.
Ensure parity amongst states and tribal nations such that tribe-to-tribe trading and interstate trade routes can be protected.
Avoiding overly limiting interstate commerce permits, but also giving them value by not making them unlimited either.
DEIC suggests 1,500 permits as a starting point divided among the three primary types as a fair balance initially.
These pillars of federal act amendments will proactively resolve interstate commerce concerns that are inherent in descheduling cannabis. Further, pre-qualifying permit holders based on their experience, education, as well as federal financing for their business (contingent on state licensing), will accomplish two primary concerns:
Incentivizes state governments to create social equity licensing regimes that emulate federal efforts
Reduces “predatory” operating agreements that use “token” social equity applicants who do not participate in the business license, contribute little to no financing, and are thereby diluted by existing operators and investors
We believe the U.S. Small Business Administration (SBA) is best to handle collaboration efforts to define this new “Minority Cannabis Business” (MCB) certification program for both program providers on the educational side and for pre-qualifying federal funding for qualified applicants.
Through this qualification, the Alcohol and Tobacco Tax and Trade Bureau (TTB) and (SBA) would issue an interstate commerce permit to be tied to state licenses, and only then would funding be issued to the applicant by the SBA. All funding issued is contingent on obtaining a state licensed facility or partnership with an existing operator in any given state.
Phased Approach:
We believe it is also important that the amendments clearly lay out a multi-phased approach to the rollout of interstate commerce permitting to ensure those most qualified operators proceed first, and to then qualify others with enough time to do so. Encapsulating the proposed amendments, we envision the following steps to ensure a smooth transition that maximizes the opportunity for social equity applicants to succeed:
Initially, establishing the advisory board for the regulatory agencies and mandates to allow for education providers to apply and be approved to provide the educational qualification to social equity applicants. These education providers may also be prioritized based on social equity and curriculum requirements designed in collaboration with cannabis business experts and diversity, equity, and inclusion advocates in cannabis.
For those who lack the experience in operating an interstate commerce permitted business, but who are impacted by the war on cannabis, approved educational programs are invaluable to overcoming the barriers in not knowing how to operate a regulated cannabis business.
Those with experience may qualify, without the need of an educational provider, and each are evaluated for priority licensing according to the following priority:
Applicants with cannabis and business experience (most qualified)
Applicants with legacy experience but limited regulated business experience
Applicants with business experience but limited cannabis experience
Applicants with little cannabis or business experience (least qualified)
If qualified in both, the applicant goes first and can qualify for SBA funding fastest.
If they have limited experience in cannabis or business, then the applicant can take the coursework to qualify and apply for SBA funding.
During this time, it is also crucial to increase community education efforts so that communities impacted most by the war on cannabis can be made aware of the opportunity to qualify, be trained/educated, and approved, and get access to the information necessary to pursue the opportunity along the above pathways.
Provide an education fund for state and municipal governments to promote the benefits of cannabis social equity, responsibilities, and risks of cannabis.
Access to financing is critical for social equity applicants and must be made available through the qualification process for social equity qualified businesses. Once qualified on education or equivalent experience, the SBA may pre-approve funding for qualified applicants. By achieving these qualifications, applicants have access to *reserved* funding appropriated by the federal act. Pre-approved financing in the form of grants and low-interest business debt instruments that are contingent on successful completion of course requirements and other “qualifying” factors for a Minority Cannabis Business is critical to ensuring success for operators and the federal government.
These government loans say how one qualifies and is “pre-approved” so that applicants can negotiate with existing industry license holders as valuable partners and receive federal funding contingent on state licensing approval. The idea is to promote partnership and participation between the existing industry and newly established social equity entrepreneurs while ensuring equal opportunity for social equity operators who do not choose to partner with the industry.
Follow Through
To ensure the program functions as designed and that the advisory committee is provided with as much data as possible to improve upon these suggested amendments, the Diversity Equity and Inclusion Committee (DEIC) recommends a final amendment in the form of a best practices study, along with collected data from participating states, to be instituted and reviewed annually for the first five years and subsequently every three years.
The intention of this study and report is to ensure the enforcement of laws, standards, and programs and to monitor that the activities of social equity operators are in alignment with the intention of the program in benefitting the social equity entrepreneurs permitted, that policies against predatory operating agreements are being enforced, and that policies are truly beneficial to creating social equity in the cannabis industry. The study will provide evidence of the benefits and challenges of the program, as well as possible improvements at federal and state levels.
Conclusion
It seems obvious that unless any social equity partner can “bring more to the table” to balance a “mega player’s” contribution, be educated in all aspects of their chosen field in the industry, recognize predatory agreements, and otherwise be positioned more equally to meaningfully participate in the cannabis industry, social equity programs will continue to fall short of meeting the goal of creating new generational wealth.
History has shown that as long as there’s an opportunity for inequality to be wielded as a weapon for those in power, it will be. No amount of good intention can change that fact.
Social equity requires empowerment opportunities for social equity candidates to bring more to the table as equals with “mega players.” We recognize partnerships can be an ideal path forward when the power dynamics within them are balanced and fair. The DEIC proposes these amendments to any federal act to serve as solutions to the traditional problems of inequality, exclusion, and gatekeeping that once spurred prohibition in the first place and that continue to prevail in the inequity the cannabis industry is still experiencing and to solve the shortcomings of social equity programs thus far.
We recognize that the role for the federal government in these federal act amendments is to even the odds in interstate commerce permitting. Their role is to oversee the fairness in qualifying candidates, to ensure a meaningful value for the permits issued, to give permittees the chance to catch up to the privileged few already in the industry with lockout periods for non-social equity applicants, limited licensing, and to provide access to financing for those traditionally locked out of access to financing or wealth as aa result of systemic oppression caused under prohibition.
Interstate commerce permitting seems like the last true chance for America to atone for 80+ years of marijuana madness and its detriment on our society. It is also the last chance for the industry to search for its soul to balance the impacts prohibition has had on these operators in excluding their participation in legal cannabis initially – born as a result of systemic discrimination overall and colonized on by those with clean records.
In doing so, a more equitable federal act can create the bold ideas and incentive to bring traditional wealth and experience into partnership with underprivileged social equity operators and their expertise/culture to form partnerships that truly represent the intent behind the policies intended for social equity and to create a more diverse, equitable, and inclusive industry for all.
Committee Blog: Social Equity Perspectives on Interstate Commerce – Part 2
As the debate heats up on “how” rather than “if” cannabis legalization will happen, social equity and comprehensive reform are at the forefront of the minds of national legislators and advocates. Previously, in part 1 of this series, the DEIC examined the problems inherent in existing social equity programs and the merit of federal social equity in regulating interstate commerce. Sadly, as written currently, all proposed federal bills fail to meet the critical objective of creating as much NEW generational wealth as possible for those harmed by the war on drugs.Now, we examine the key components of a proposed framework to address these challenges, how to define social equity federally, and the merit of determining the types and numbers of permits to be issued.
Key Considerations for a Federal Cannabis Social Equity Program:
Fundamentally, any federal act for cannabis legalization should be a social justice bill that deschedules cannabis federally and that creates the most amount of new generational wealth for those most impacted by prohibition. Expungement for all persons with a past criminal record involving cannabis is the bare minimum these bills should do. However, proposed bills so far fall short of the latest innovative solutions to known problems in social equity programs and should be amended to include these key considerations.
Any proposed act must be amended to include provisions on regulating interstate commerce immediately after descheduling. The NCIA’s Diversity Equity and Inclusion Committee (DEIC) believes any federal act must prioritize social equity ownership of interstate commerce permits issued by the federal government. Learning from the municipal and state social equity programs, this policy paper seeks to propose amendments that meet these objectives, by instituting the following amendments to federal legalization bills:
Defining the regulatory agency for federal interstate commerce regulation and taxation
Alcohol and Tobacco Tax and Trade Bureau (TTB) and U.S. Small Business Administration (SBA) roles and responsibilities
Defining number and types of seats for a Federal Cannabis Social Equity advisory board
Ensure a diverse and representative Federal Cannabis Social Equity advisory board members, e.g., federal, state, tribal nations, diverse city representation, NCIA, and social equity cannabis owners, and operators.
Defining who qualifies as a social equity interstate commerce permit holder:
Outlining what states must meet as a minimum standard set by the federal government to participate with equivalent/reciprocal qualification.
May be determined by advisory board to define social equity qualifications
With minimum areas defined such as: income, arrest history, disproportionately impacted area(s), residency or heritage to avoid gentrification issues at large.
Defining permit types (similar to wine wholesale model) such as:
Importing
Privileges to buy from exporters directly and sell to distributors or transporters and licensees into a state system from another state
Exporting
Privileges to buy from operators and sell from a state system to an importer in another state
Transporting
Privileges to sell to or buy from qualified cannabis licensed businesses within a state system and to move product from or to licensees in a state or between importers and exporters interstate
Testing
State labs that meet national standards to ensure consistency with results for other permit types
May not be strictly social equity since existing labs are more specialized in converting to federal standards and adding this permit
Defining these basic requirements offers a framework for interstate commerce permitting and establishes the essential agencies required to enact a robust social equity program federally. More importantly, it stalls illegal and gray area activity from taking root under the guise of federal legalization by ensuring interstate commerce activity falls under a specific regulatory agency already well versed in interstate commerce permitting and regulation.
Suggested Social Equity Definition:
To define social equity applicant qualifications, DEIC suggests the TTB and SBA move away from diversity supplier program definitions which are too restrictive for a new industry to qualify. In order to accommodate the cannabis industry, DEIC recommends looking at other state definitions of social equity qualification that have proven to be effective.
Factors like living in a disproportionately impacted area for 5 out of 10 years, being arrested for cannabis or having a family member who was arrested, as well as income below the poverty line, should become qualifying factors.
Additionally, minorities, women, and veterans should be given additional consideration in the definition of who qualifies as a minority cannabis business.
High poverty rate, unemployment rate and participation in federal or state income-based programs, a history of arrests, convictions and other law enforcement practices in a certain geographic area, such as, but not limited to, precincts, zip codes, neighborhoods, census tracts and political subdivisions, reflecting a disparate enforcement of cannabis prohibition during a certain time period (war on drugs started in 1971), when compared to the rest of the state.
Utilize the advisory committee and collaborate with cannabis social equity groups to make sure gentrification and displacement are taken into account. Many areas have drastically changed over the last 5-10 years. Where a person spent their formative, childhood years should also be factored in. Guarding against ‘gerrymandering’ types of map cutouts, where folks who grew up literally surrounded by DIA’s, and who dealt with many of the same issues growing up, are somehow not considered to be disproportionately impacted.
We believe the federal government should leave regulations within each state alone during this multi-year implementation and defer to the TTB and SBA to work in conjunction with any Federal Drug Administration (FDA) regulations with their primary focus pertaining to interstate commerce and taxation as it relates to social equity permit issuance.
Defining How Many Permits to Issue to Social Equity Operators
To address the common shortfalls of state programs, the DEIC realizes that social equity applicants are already a minority stakeholder in existing cannabis licensing. In most states, sadly, constituting less than 5% ownership. This is a huge difference compared to the proportion of individuals in prison for the same activities a licensed business is allowed to conduct.
Accordingly, the DEIC recommends a direct balance in ensuring a lock-out period on issuing new permits and ensuring, during that time, that 95% of the permits go to social equity owners/operators.
While some may consider such a counter-balance to be extreme, more and more states are increasing the committed amount of licenses for social equity to ensure a fair counter-balance. If anything, mega-players should be competing with each other for a select number of limited licenses – not the other way around.
We also realize that, in order to generate investment or value behind interstate commerce permits, there could not be an unlimited number of them initially issued. While the advisory board may issue more in the future, we feel a bold stand to increase the number of valuable permits for initial social equity applicants nationwide is necessary to ensure a balance that reflects the oversight to include social equity business into the industry thus far.
DEIC suggests 1,500 permits as a starting point divided among the three primary types (import, export, transport) as a fair balance initially.
The above policies may seem bold, but they are designed to seek to balance the industry and state’s failure to allow social equity participation. Most cannabis states left out social equity operators by mandating residency and felony-free requirements.
The reality is that interstate commerce means selling the products already owned and produced by non-social equity folks. Further, if it was not for these legacy operators, there would not be a cannabis culture. A culture that has been co-opted from legacy social equity operators by mega operators who kept “undesirables” from the industry at its inception.
These policies seek to balance the needs of traditional cannabis businesses that would most benefit from interstate commerce, with the needs of social equity businesses to create equal opportunity. By limiting the number and availability of interstate commerce permits for at least a 5 lock-out year period, the policy ensures traditional operators partner with social equity permit holders to export, import, and transport their goods between various markets.
The policy helps ensure partnerships that are more equitable for both parties and, in doing so, seeks to avoid “predatory operating agreements” or “social equity colonialism” that dilute social equity operators who are not given the opportunity or resources to bring anything to the table. Therefore, the DEIC stands by lock-out periods and a dedicated high percentage of limited licenses for social equity interstate commerce permitting as a policy to balance existing inequity.
In the next part of this policy paper series, the DEIC will examine how this framework sets up social equity technical assistance, qualification, and a phased approach of implementation to ensure the widest net is cast and that social equity operators have ample time to qualify, are appropriately funded, and set up for success with an equal starting line for interstate commerce.
by Mike Lomuto, NCIA’s DEI Manager
Helen Gomez Andrews: 
Raina Jackson is a multifaceted 
The Social Equity applicants and operators comprising the delegation spoke directly to lawmakers on the kind of real changes we need for DEI and social equity to become a reality in our industry, in particular regarding SAFE banking. From their experience as professionals and advocates in the industry they were able to provide much-needed insight into how legislation impacts owners, operators, budtenders, and the social equity community in particular at the ground level. These conversations proved to be the missing link for a lot of these elected officials on Capitol Hill who stated their support for making a more equitable industry and righting the wrongs of the war on drugs, but lack real-life experience on the matter. 
by Mike Lomuto, NCIA’s DEI Manager
“I want our elected officials to hear my story which gives a voice to so many others, who like me, grew up in areas that have disproportionately borne the brunt and weight of cannabis enforcement. Children and young adults, whose only crime was being poor and of color, faced the indignity of being stopped and frisked hundreds of times. Now after paying the ultimate entry price, we can not get in the door of the cannabis industry because of a lack of banking and lending opportunities that continue to shut us out of the cannabis market. 
“As the industry grows and moves towards federal legalization, our elected officials must hear constituents’ voices. It’s important that my energy, face, and voice are present, representing the need for safe banking, health equity, and policies that support federal legalization. As states continue to legalize adult recreational cannabis usage, there will be an increased need for cannabis health equity to address the social, political, and economic conditions in underserved communities. 
“I have begun to work on lobbying at a local level. Federal legalization, descheduling, decarceration, social equity, health equity, and safe banking are some of the areas that I would like to learn how to lobby for at the national level.”
“We should not stop at using the SAFE Banking Act merely to provide legal and regulatory protection for financial institutions. That will enable, but not ensure, increased banking services for minority-owned cannabis and hemp companies. 
I am a first-generation Latino of Colombian descent, Spanish was my first language and my dad spent most of my youth incarcerated. I grew up in NYC Public Housing projects, and I have first-hand knowledge of the indignity of what it feels like to personally be stopped and frisked nearly 100 times which is what happened to me as a kid and young adult for doing nothing else than being a poor Latino growing up in the hood. I was an Education Opportunity Fund scholar and the first in my family to go to college, where I received a degree in business, and a graduate certificate in law. I earned the designation of Disabled Veteran while serving in Iraq with the United States Marine Corps, and I am also a 9/11 first responder. I retired after a career in public service, and have worked as an entrepreneur for over 10 years, and know what it takes to start a business from scratch, without a rich uncle, generational wealth, or rich financial backers. 
Latinos are consistently underrepresented in terms of business owners throughout all industries. Now when you focus specifically on cannabis and look at a national level, just 5.7% of all license types are held by the Hispanic community. I have seen challenges in the cannabis industry in two key areas, access to capital and the real estate market. It takes money to make money so if you grew up poor, without generational wealth, no rich uncle, no hedge fund connections or oligarchs to call on, how do you raise funds to have the millions that are needed to launch a dispensary or grow? Next and along the same lines is real estate. A lot of landlords won’t lease to cannabis businesses but unfortunately, our experience has been that again a predatory market exists where cannabis rental rates are 2 to 10 times the normal lease rates for the area. The other option is to buy a commercial parcel which brings us back to issue #1 – access to capital. I am ever the optimist, and I see the Latino community growing in the legal cannabis industry as entrepreneurs, c-suite members, and as leaders in the industry bringing our unique insight and sabor to the industry while creating opportunities for generational wealth for our community. In order to get there, we need to bridge the gap through social equity grants and loans that can help Hispanic cannabis entrepreneurs raise enough capital to start their business, and receiving financial education is also crucial for Hispanic entrepreneurs in multiple phases of the cannabis business planning timeline.
Where are they now? This month, NCIA’s editorial department continues the monthly Member Spotlight series by following up with three of our Social Equity Scholarship Recipients as part of our Diversity, Equity, and Inclusion Program. Participants are gaining first-hand access to regulators in key markets to get insight on the industry, tips for raising capital, and advice on how to access and utilize data to ensure success in their businesses, along with all the other benefits available to NCIA members.
First off, we have rebranded. We are now Cannvas Events. The name change was part of our evolution and maturation as a startup. As we scaled, more resources became available for things like branding. We brought in Greg Hill of Brand Birth to deploy the science of branding and the end result was a new name, new logo, and new understanding of where we were situated in the regulated cannabis ecosystem. The transformation led to the planning and production of our signature Cannabis Event 2.0 offering, the inaugural Saturnalia Canna Carnival, taking place at the Trinity Health Arena in Muskegon, MI on August 2oth. We are powering a traditional indoor/outdoor carnival – rides and attractions included – with a hassle-free, normalizing consumption solution. If you’re in the Midwest, come join us as we celebrate the first year of an iconic, perennial cannabis festival. Tickets and info at cannvasevents.com and follow us @saturnaliacannacarnival
The 
I’m impressed by the brilliant folks on the committee, and their dedication to making cannabis equitable. It takes time out of our grueling work days to contribute time on these committees but the contribution to making the industry better is crucial during these developmental years of cannabis. Perhaps our current misguided, harmful CA cannabis policies could have been prevented with more early participation from stakeholders who are stewards of the plant. However, there were many factors involved with the way CA policies were created, including special interest money from those who don’t care or want to see the industry fail. 
Overburdensome taxes and high barriers to entry for licensing throughout the state are most obvious right now. The lack of diversity and equity, consumer education, state and federal funding for further research and development also play a huge role in CA’s struggles. I’m frustrated that the State doesn’t understand that those who have been dedicated to the industry, collaboration and this plant are the only ones who can truly guide this industry forward.
There is a lot new in the world of Next Level since 
California Cannabis is facing challenges on many fronts. Countless unnecessary hurdles to legal entry, political red tape, and excess packaging waste to name a few. But the biggest challenges are around security. Every week there is news of a new dispensary, farm, distributor, and friend being burglarized. High tech security systems, gates, and cameras are no match for organized thieves and slow police responses. Until we can get a portion of our excessive taxes dedicated to funding police divisions that specifically targets cannabis thieves, the best solution to combat this is to support your favorite brands by purchasing their products through legal cannabis retail sources.
My name is Adolfo Castillo. People who know me call me Ace. Before I started my first cannabis business, I had a 10-year career in the banking industry. I started in a call center as a customer service associate. I then moved into a traditional banking center where I learned sales and eventually became the assistant manager. It was at the end of my tenure in 2008 that my Tia Eloise was diagnosed with terminal cancer. At the request of my mother, she asked me to get some cannabis in hopes that it would help her sister eat. Although it did not cure cancer, it really helped her appetite and gave her a bit of relief. Unfortunately, my Tia Eloise lost that battle, but it was the relief that I was able to provide that helped bring me peace when she passed away. This all happened around the same time that bill SB 420 was signed into California law, establishing statewide guidelines for Prop. 215. This law paved the way for cooperatives and collectives to begin operating legally in my city. It was at that moment that my love for cannabis became a passion. I felt a need to help more people gain access to cannabis, so I partnered with a friend of mine who sold weed and I took what I had learned about business and applied it to opening my first medical cannabis dispensary.
NCIA’s editorial department continues the Member Spotlight series by highlighting our 
Hello, I’m Adrian Adams, EdD. I spent a decade teaching Biology and Chemistry as well as coaching football. I chose to spend several years as a stay-at-home dad (the hardest job by far) and then worked in the pharmaceutical industry. I know many of the physicians in my area. While at dinner one night with a couple of doctors, the conversation revolved around having to combat the misinformation that patients come in with from “Dr. Google.” Minutes later, one doctor asked the others what they were saying to the increasing number of patients who come in asking about cannabis therapy. There was a prolonged silence until another doctor said “I just tell them I don’t know anything about that and to look online.”
We offer reduced costs, which can be a barrier to entry for consumers. And a deep knowledge of the intersection between cannabis and medicine. Physicians are a choke point for the industry that is overlooked. Simply put, doctors are good people. Most of them have simply had zero training on the endocannabinoid system as it was only identified in the 1990s. Ontogen Botanicals believes if they knew better, they’d do better. We offer doctors the information to make an 
A big problem for any small business is finding the right people to do business with. Minority business owners face discrimination and mistrust when trying to do business in general. Now add cannabis to the equation. I’ve been asked for $5K just for the right to open a business checking account.
