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.
Member Blog: As Professionals in the Cannabis Industry, It’s Our Responsibility to Unmask the 4 Big Lies
The vast majority of U.S. adults support the legalization of cannabis, with 60 percent supporting legalization for medical and adult use, and 31 percent supporting medical use only. Only 8 percent say it should not be legal for use by adults in any scenario. These numbers are promising for those of us in the industry, but behind the numbers, many stigmas still exist.
Breaking the stigma against cannabis is the responsibility of each and every individual currently working in the cannabis industry. In particular, for those of us working in retail, we are on the front lines of changing the criminal and negative perceptions associated with cannabis.
As front-line workers, it is important to understand how the stigma against cannabis came about and how it has harmed not just the cannabis industry and cannabis users, but our entire country. We’ve all been lied to. These Big Lies have shaped our beliefs about race, cannabis, and addiction, and it’s time to unmask these Big Lies for what they are: lies.
#1: Black Men Are Dangerous
The lie that Black men are inherently dangerous extends far, far back into our country’s history, but we’re going to start in the 1930s, with a man named Harry J. Anslinger. Anslinger became the commissioner of the Federal Bureau of Narcotics in 1930.
Anslinger initially spent most of his time chasing down bootleggers. When Prohibition ended in 1933, he suddenly found himself out of a job. For the Federal Bureau of Narcotics to continue to have purpose — and receive the funding that paid his salary — Anslinger had to find a new bogeyman to prosecute.
He chose marijuana, a term that itself has racist roots and was a way to otherize cannabis as a “Mexican drug.” At this time, cannabis was not regulated in any way in the United States, so he first had to make it illegal. In order to do that, he needed people to fear it. He figured, why not link it to something people already fear: Black people — particularly Black men.
And so, the propaganda began. Anslinger sparked a national anti-cannabis movement by tying cannabis usage to the Black community and other marginalized groups.
Obviously, Anslinger didn’t invent racism, but his propaganda propagated and amplified it. In short, Anslinger used the lie that Black men are dangerous to help make cannabis illegal, and then he weaponized cannabis against minority communities.
To this day, people of color are disproportionately impacted by the war on drugs. In fact, though Black and white people use cannabis at similar rates, a Black person is 3.64 times more likely to be arrested for possession. And, as industry professionals, we need to understand the racist roots behind the stigma of cannabis and do our part to elevate those groups disproportionately and unfairly impacted by the war on drugs.
#2: Cannabis Is Dangerous
Using fear of Black men, Anslinger convinced people that cannabis was dangerous. The idea that cannabis makes people dangerous is ludicrous to me. I grew up during the war on drugs, and I bought into many of the lies. I truly believed cannabis was bad, but never once did I think of cannabis users as dangerous.
As a child, I spent time around both alcoholics and cannabis users, and the difference was clear to me. Drunk people were violent, abusive, and dangerous. High people were safe, normal, and most importantly not violent.
However, in the drug education I received, I learned that all drugs are fundamentally bad, with no differentiation. Cannabis, meth, heroin, LSD, cocaine — they were all grouped together. And even when people acknowledged that cannabis was less harmful and addictive than harder drugs, they emphasized that it was still incredibly dangerous because it was a “gateway drug.”
Today, despite all the evidence that cannabis is safe for most people, the lie persists. Cannabis is classified as a Schedule I drug, meaning it has “no currently accepted medical use and a high potential for abuse.” Other Schedule I drugs include heroin and meth.
As a country, it’s long past time that we focused our attention on true dangers. As a cannabis retailer, it’s important to recognize that even though you know cannabis is not dangerous, your customers might not.
#3: Opioids Are Safe
Because of the lie that cannabis is dangerous, it was not normalized (or legal) as a method of pain management. There was a need for pain management, though, and so in 1996, Purdue Pharma, under the direction of the Sackler family, developed and patented OxyContin.
It was hailed as a miracle drug that took all the pain away, as if by magic. Magic often comes at a cost, though, and in this case, the cost was hundreds of thousands of American lives— more than five hundred thousand, to be specific.
Within a few years, evidence emerged that the drug was addictive and led to overdose deaths. While we were all being told that cannabis was the gateway drug, Purdue Pharma was flooding our country with the real gateway drug—opioids. They funded research studies that supported the use of OxyContin, and Richard Sackler put intense pressure on sales managers to sell more.
This Big Lie has harmed hundreds of thousands of Americans. Opioids destroy lives, and the ripples extend beyond the addict alone. An entire generation of children will be shaped by addiction and the absence of their parents.
You may not be personally connected to the Opioid Endemic, but as a cannabis retailer, you are in the business of pain management. By understanding this Big Lie and providing people with an alternative to addictive opioids, you could literally save lives.
#4: Addiction Is the Addict’s Fault
I understand the impulse to blame addiction on the addict. An addict’s struggles with addiction can be enough to tear their loved ones apart inside. You want to scream, “Why can’t you just quit?” But blaming addiction on the addict makes as much sense as blaming someone for having cancer, asthma, or migraines.
Who is responsible for addiction, then? The people who caused the Opioid Endemic, people like the Sackler family. As Patrick Radden Keefe puts it in Empire of Pain, “Prior to the introduction of OxyContin, America did not have an opioid crisis. After the introduction of OxyContin, it did.”
So, if you want to blame someone for addiction, blame the Sacklers. Blame Big Pharma. Blame the people who knew this drug was addictive but lied to us, told us it was safe, and pumped it into our communities.
Every single person I know who got addicted received their first pill or hit from a trusted source. This is how the Opioid Epidemic started. It didn’t start with irresponsible drug dealers on the street. It started between patients and doctors. Opioids moved through our world via trusted sources.
Cannabis and opioids are very different drugs. Cannabis is far safer than many people realize. Due to the nature of cannabis, I do not believe cannabis retailers will be creating addicts the way Purdue Pharma did, but it’s still important to understand this Big Lie because some of your customers may have struggled with addiction and need compassion from you.
The Consequences of These Lies
These Big Lies are all connected. Without racism, cannabis wouldn’t have been stigmatized. Without the stigma against cannabis, we would have had a nonaddictive alternative to opioids. Without the lies that opioids are safe and that addicts are to blame for addiction, hundreds of thousands more people would still be alive today.
When it comes to breaking the stigma, you are on the front lines. In knowing the truth about where the stigma came from and why it’s so harmful, you can begin to change it.
One customer at a time, you can begin to undo the Big Lies and share the reality of cannabis.
For more advice on how to undo the Big Lies and share the Big Truths of cannabis, you can find Breaking the Stigma on Amazon.
Charlena Berry is the author of Breaking the Stigma: Racism, Lies, the Opioid Endemic, and Inviting Grandma to the Dispensary. In this book, she exposes lies that created the stigmas associated with cannabis, and how these stigmas must be addressed to see continued growth in the marketplace. She then outlines a framework that provides key strategies for retailers to implement to improve the customer experience and increase profitability.
Writing from her experiences in the industry, Charlena is a global cannabis business executive and the founder of Cannabis Business Growth, a premier cannabis business consulting firm. Prior to that, she spent more than a decade in Supply Chain and Retail Operations for Fortune 500 companies like Whirlpool and Office Depot/Office Max. She also serves as the Chief Operating Officer for The Cake House, a chain of dispensaries in Southern California.
Midsummer Movement: The Pre-August Recess Rush in D.C.
Photo By CannabisCamera.com
By Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations
As Congress gets ready to beat the D.C. heat and leave Washington for their annual August recess, there’s at least one thing on their minds: cannabis.
Last week, Senate Majority Leader Chuck Schumer (D-NY) along with Finance Committee Chair Ron Wyden (D-OR), and Sen. Cory Booker (D-NJ) introduced their much anticipated Cannabis Administration and Opportunity Act (CAOA), which is now the Senate’s only pending legislation that would provide comprehensive cannabis policy reforms across the nation.
The landmark bill would remove cannabis from the federal Controlled Substances Act and move regulatory responsibility from the Drug Enforcement Administration (DEA) to the Alcohol and Tobacco Tax and Trade Bureau (TTB), the Food and Drug Administration (FDA), and other agencies to protect public health and safety. The bill would also institute a federal excise tax of 5-25% on cannabis on top of the already-hefty state taxes imposed on the industry, concerning advocates for small cannabis businesses and equity operators.
The long-awaited CAOA was introduced after sponsors circulated a discussion draft last year. NCIA and other advocacy organizations provided comprehensive feedback to the bill’s authors last year. Notable changes to the legislation include:
Increases the permissible THC by dry weight from the current 0.3 percent to 0.7 percent and refines the definition of “hemp,” and consequently “cannabis” by taking into account the total THC in a cannabis product, rather than just delta-9 THC.
Changes to the weight quantity to qualify a person for felony cannabis distribution or possession charge under the section from 10 pounds to 20 pounds.
Provides that a court shall automatically, after a sentencing review, expunge each federal cannabis conviction, vacate any remaining sentence, and resentence the defendant as if this law had been in place prior to the original sentencing.
Enables a noncitizen who has received a deportation order based on a cannabis-related offense to file a motion to reconsider that decision. If the motion to reconsider is filed within 30 days of the removal order, the motion may allow for the cancellation of the deportation order.
Establishes a new 10-year intermediary lending pilot program in which SBA would make direct loans to eligible intermediaries that in turn make small business loans to startups, businesses owned by individuals adversely impacted by the war on drugs, and socially and economically disadvantaged small businesses.
Removes the requirement to maintain a bond for any cannabis business that had less than $100,000 in excise tax liability in the prior year and reasonably expects excise tax liability in the current year to be below such amount.
Incorporates rules similar to rules currently applicable to permitted malt beverage producers and wholesalers.
While the historic nature of the CAOA cannot be understated, the bill has a multitude of challenges ahead of it. Not all Senate Democrats support the legislation, making the 60-vote filibuster threshold nearly impossible. Plus, with only a couple dozen legislative days between now and the end of the session, time is also working against advocates.
Dovetailing with the introduction of the CAOA, the Senate Judiciary Committee’s Subcommittee on Criminal Justice and Counterterrorism will hold a hearing titled “Decriminalizing Cannabis at the Federal Level: Necessary Steps to Address Past Harms” this Tuesday. While the witness list has not been made public as of publication, expect the hearing to focus on the newly introduced legislation and how it would affect communities most impacted by the war on drugs.
In other news, the House and Senate will vote on a revised research bill, the Cannabidiol and Marihuana Research Expansion Act, this week. The bill is expected to pass both chambers and be sent to President Biden’s desk for his signature. The Senate bill is sponsored by Sens. Dianne Feinstein (D-CA), Chuck Grassley (R-IA), and Brian Schatz (D-HI) and passed by unanimous consent in March. The House bill is sponsored by Reps. Earl Blumenauer (D-OR) and Andy Harris (R-MD), and passed 343-75 in April. One of the notable areas of compromise? The House bill would have allowed researchers to do their studies on cannabis that’s actually being sold to consumers in dispensaries. That was removed during negotiations, meaning that researchers will still have to obtain their cannabis from the University of Mississippi’s cultivation facility.
There’s still time before recess begins, so make sure you stay tuned to NCIA’s podcast, social media, and newsletter to stay up-to-date on all the latest from Washington, D.C.! Interested in making more of an impact? Don’t forget to register for our upcoming 10th Annual Cannabis Industry Lobby Days on September 13-14, 2022!
Making History In Congress, Thanks To NCIA Members!
by Aaron Smith, NCIA’s CEO and Co-founder
History was made today as Senate Majority Leader Chuck Schumer (D-NY) along with Senators Ron Wyden (D-OR) and Cory Booker (D-NJ) introduced the Cannabis Administration and Opportunity Act which would finally remove cannabis from the federal Controlled Substances Act and begin the process of federal regulation.
For the last year, NCIA has been working behind the scenes to ensure this landmark legislation not only ends prohibition but also creates an environment where small and medium-sized businesses can thrive under national legalization. These businesses – who we now call “Main Street Cannabis” – are the heart of our industry and we’re proud to have been giving them a seat at the table in our nation’s halls of power for over 12 years.
We will continue working with our allies in the Senate to advance this bill and advocate for some necessary amendments to better ensure that small, equity, and women-owned businesses (in particular) are well-positioned to thrive after the end of federal prohibition.
We would not be where we are today if not for your support which has allowed us to effectively represent the interests of small businesses like yours in the halls of Congress and in the court of national public opinion.
I hope you’ll join us in making national legalization a reality by making your voice heard at our upcoming 10th Annual Cannabis Industry Lobby Days in Washington, D.C. September 13 & 14!
Thanks to your membership, NCIA’s government relations staff represents Main Street Cannabis in D.C. every day but Lobby Days is your chance to show up and tell your unique story to our nation’s lawmakers, firsthand.
Lobby Days is also the best opportunity to connect with your fellow industry leaders who are truly invested in the future of cannabis and sensible national policy. Please register today so you don’t miss out on making history with us! Reach out to my colleague Madeline Grant to learn more about how you can be as impactful as possible at this year’s Lobby Days.
Thanks, as always, to all NCIA members for their support of the cannabis industry. If your company is not yet a member of NCIA, now’s the time to join and have your voice heard in the halls of Congress.
Watch this video update with Aaron Smith and Michelle Rutter Friberg:
Video: NCIA Today – Thursday, July 14, 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: 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.
Positioned for Success – Highlights from the Insights & Influencers: NY Opportunity Tour
Any cannabis insider knows that New York is poised to become the next cannabis epicenter since legalizing last year. As such there is naturally incredible interest in learning about the business opportunities, how to best position yourself for success, as well as networking with potential future partners and clients. To meet these needs for our members and supporters, NCIA hosted the “Insights & Influencers: NY Opportunity Tour”, a weeklong series of events across New York featuring stops in Rochester, Albany and Brooklyn in partnership with founding members Canna Advisors, a trusted advisor to cannabis entrepreneurs who are starting or expanding a cannabis business.
(C) Sam C. Long / Honeysuckle Media, Inc.
Returning with our first in person events of the year, we couldn’t have been more thrilled to meet face-to-face with nearly 150 attendees who were either current or prospective business owners operating in New York and interested in expanding their operations or trying to break into the industry. With stops in Rochester, Albany, and New York City, the events brought together attendees from across the Empire State to not only learn about the developing regulatory landscape and opportunities to get involved with the burgeoning cannabis industry, but also the latest developments with NCIA’s work on federal cannabis policy.
(C) Sam C. Long / Honeysuckle Media, Inc.
Speakers were NCIA CEO and co-founder Aaron Smith and representatives from Canna Advisors including Bob Wagener, Vice President of Real Estate Development; Sumer Thomas, Director of Regulatory Operations; and Vincent DiMichele, Regulatory Content Manager. During the hour long presentation, numerous topics were covered that were relevant to business owners in the cannabis industry such as:
• The possibility of federal legalization and the work NCIA is doing to ensure small — or “main street” — cannabis businesses have a seat at the table as legislation is written
(C) Sam C. Long / Honeysuckle Media, Inc.
• Benefits of starting the license application process early and the importance of community engagement efforts
(C) Sam C. Long / Honeysuckle Media, Inc.
• Understanding zoning requirements and ensuring your business can operate in the best location possible
(C) Sam C. Long / Honeysuckle Media, Inc.
• Developing staffing needs and protocols so the team behind your operations is positioned for success and growth
• Engaging in public comment periods including the New York Office of Cannabis Management’s (OCM) current 60 day comment period open now through August 15 surrounding regulations for packaging, labeling, marketing, advertising, and laboratory testing of adult-use cannabis
Throughout the tour, representatives from the OCM were on-site to chat with participants, answer questions that attendees had, and generally get to know those interested in owning or operating a cannabis related business in the state. We are proud to facilitate those connections at our events time and time again, so that regulators and business owners alike can meet in person to build relationships which in turn helps break down the barriers to communication down the line.
Nevillene White, Manager of Community Relations and External Affairs for OCM, joined our Albany gathering right next door to The Egg performing arts venue located inside of Empire State Plaza. Throughout she was able to supplement the presentation by providing comments directly to crowd feedback during updates on the licensing process in the Capitol.
(C) Sam C. Long / Honeysuckle Media, Inc.
Trivette Knowles, Press Officer and Manager of Community Outreach for the OCM, was present in Brooklyn and commented ”We need more events like this to show people that cannabis touches all walks of life,” he said. “It’s part of the culture.”
(C) Sam C. Long / Honeysuckle Media, Inc.
NCIA’s Aaron Smith closed out each of the events with a final call to action for everyone in the room: Contact New York’s U.S. Senators Chuck Schumer and Kirsten Gillibrand to urge them to support the SAFE Banking Act and bring it to the floor for a vote. As the Majority Leader in the Senate, Sen. Schumer has the power to allow the legislation to be voted on but has not done so, stating a preference for more comprehensive legislation. Smith also discussed the Cannabis Administration and Opportunity Act (CAOA), which addresses federal legalization on a broader scale. A final version of that bill is still yet to be introduced however, and passage of the SAFE Banking Act would provide protections to financial institutions working with cannabis business and would have a positive impact on the cannabis industry while support for CAOA and comprehensive reform builds in Congress.
Of course we encourage anyone reading to take this call to action even further, and plan to join NCIA at our upcoming 10th Annual Cannabis Industry Lobby Days from September 13-14 in Washington, D.C. Find out more details and register online here.
We can’t thank all our members and supporters who attended the events on our “Insights & Influencers: NY Opportunity Tour” enough, as well as our co-hosts, Canna Advisors, for making these events possible!
(C) Sam C. Long / Honeysuckle Media, Inc.(C) Sam C. Long / Honeysuckle Media, Inc.(C) Sam C. Long / Honeysuckle Media, Inc.(C) Sam C. Long / Honeysuckle Media, Inc.(C) Sam C. Long / Honeysuckle Media, Inc.(C) Sam C. Long / Honeysuckle Media, Inc.
Interested in attending our next in-person event this Summer? Register now for the Colorado Industry Social taking place on Thursday, July 28 in Denver, CO.
Want to know how you can sponsor events like these? Please contact our Events Team at events@thecannabisindustry.org to explore possibilities.
Member Blog: As a Leader, You’re in the Business of Talent. That Means Your Top Priority Should Be Your People.
As a leader (especially a leader in the cannabis industry), you’re in the business of talent — identifying it, hiring it, developing it, and retaining it. Your top priority should thus be your people.
The first place to look to see if you have a people problem in your company is employee turnover. You can’t (and shouldn’t want to) completely avoid turnover, as it’s natural for some employees to move on and, occasionally, you will make hiring mistakes and need to let people go.
However, if you have high employee turnover — say, as high as 20 to 30 percent over the course of a year — it’s a sign you have an illness in your company. While this figure may seem low, traditional retailers aim for an even lower turnover rate. To calculate turnover, divide the number of employees that left the company by the total number of employees. For instance, if 30 employees out of 100 employees leave in the course of a year, your turnover is 30 percent.
If your employees don’t want to work at your store, do you think they’re going to create the kind of environment that customers want to shop in? Probably not. And if a good portion of your employees are in training and don’t yet know what they’re doing, is that going to create a delightful customer experience? Again, probably not.
The good news is that there are steps you can take — which I’ll share with you here — to reduce turnover and prioritize your people. Ultimately, by implementing some or all of these strategies, you’ll be able to offer your people the greatest possible experience. That will benefit not just them, but your organization and your customers as well.
Adopt the Leadership Mindset
Many factors can contribute to turnover. If you’re not offering compensation and perks that are on par with other cannabis retailers in your area, for instance, you’re likely to lose employees.
The biggest factor, though, is leadership. You might have heard the saying before that people don’t leave companies, they leave managers. If your management team makes employees miserable or doesn’t make them feel valued, they’ll leave.
If, on the other hand, you adopt the leadership mindset and take the time to train managers to form a personal connection, be curious, empower, develop, and inspire your employees, they’re more likely to stay because those elements create a rewarding, enjoyable work environment.
Promote From Within
It’s also critical that you establish a practice of promoting from within. If your employees don’t see any growth opportunities within your company, they will be forced to leave to progress in their careers.
Promoting from within also just makes good business sense. Who knows your store and your company culture better than the people who already work there? When you promote an employee to a leadership position, they can hit the ground running.
Especially as you scale, promoting from within is key to implementing a seamless customer experience across multiple locations. When a role is empty, it disrupts the continuity of operations. Imagine a ship whose captain is swept overboard. You need a second-in-command ready to step up and fill the role.
Focus on Diversity, Inclusion, and Equity
As you hire and build paths to leadership positions for your employees, keep diversity, inclusion, and equity in mind. With the long history of people of color being disproportionately impacted by the war on drugs, the very least we can do as retailers is ensure we are being fair and creating opportunities in our hiring and promoting practices.
Plus, diversity leads to better business results! McKinsey & Company found that companies in the top quartile for ethnic and cultural diversity in executive teams outperformed those in the bottom quartile by 36 percent.
Understand When to Let People Go
As unpleasant as it can be, the final aspect of managing the talent of your company is understanding when to let people go. Every employee is a representation of your company and contributes to the customer experience. You can’t afford to have subpar employees when you could put someone incredible in that role — someone who will make a difference in terms of how customers think and feel about you.
If a team member isn’t living up to the expectations of a role, you need to provide clear, regular feedback about what needs to change. Employ your curiosity and ask leading questions to try to mold them into the role: Why do you do things that way? Have you thought about other ways to do it? What if you tried x or y?
If after several months, they’re still failing to meet expectations, they’re probably not a good fit for the role. At that point, you can either try to find a different role for them if you think they could still make a valuable contribution or let them go. You can’t expect people to magically know everything they need to know and perform well in a role without guidance and training, but you also can’t expect everyone to be a good fit.
Turnover is Expensive
Bottom line, turnover is expensive, both financially and culturally. Every time an employee leaves, you have to pay the costs of onboarding and training a new employee. According to Gallup, that cost can range from one-half to two times the employee’s annual salary.
It’s far cheaper — and results in a better customer experience — to retain and develop your current employees. Turnover also damages your company culture. When you have many empty positions or many new employees in training, it increases the pressure and stress on your veteran employees. It can trigger a wildfire of employees leaving, which lowers morale and disrupts team dynamics.
As a leader, it’s easy to get caught up in the minutiae — emails to answer, decisions to make, spreadsheets to review. Those tasks are important, but the area where you can have the most impact is in people’s development. When you put people first, it’s like dropping a rock into a still pond, spreading ripples throughout the company.
For more advice on actionable strategies you can implement that put your people first, you can find Breaking the Stigma on Amazon.
Charlena Berry is the author of Breaking the Stigma: Racism, Lies, the Opioid Endemic, and Inviting Grandma to the Dispensary. In this book, she exposes lies that created the stigmas associated with cannabis, and how these stigmas must be addressed to see continued growth in the marketplace. She then outlines a framework that provides key strategies for retailers to implement to improve the customer experience and increase profitability.
Writing from her experiences in the industry, Charlena is a global cannabis business executive and the founder of Cannabis Business Growth, a premier cannabis business consulting firm. Prior to that, she spent more than a decade in Supply Chain and Retail Operations for Fortune 500 companies like Whirlpool and Office Depot/Office Max. She also serves as the Chief Operating Officer for The Cake House, a chain of dispensaries in Southern California.
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.
Happy PRIDE! 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.
Make the investment, take the time, and do the work to position yourself for success in the Empire State!
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.
Member Blog: Illinois Adult-Use Dispensary Applicants Hope Licensing Process Doesn’t Go Up in Smoke
Recently, after delays in issuing any adult-use dispensary licenses, Illinois has attempted to push ahead with simplifying the application and issuance process. Interestingly, this has occurred even as recent developments in ongoing litigation indicate potential further delays in issuing the previously awarded licenses that are currently in limbo, and in one case, even threaten to upend the entire process.
Delays and Initial Lottery Announcement
On September 3, 2020, after multiple delays, the Illinois Department of Financial and Professional Responsibility (“IDFPR”) announced the application scoring results for the initial 75 new adult-use dispensary licenses to be issued under the Illinois Cannabis Regulation and Tax Act (the “Act”). Only 21 of the 900-plus applicant groups had achieved a perfect score, and the available licenses would be awarded via a series of lotteries involving only those applicants. Although all 21 applicants with a perfect score were deemed too qualified for “social equity” status under the Act, there were public allegations that only 13 of the 21 accepted applicants were actually owned and controlled by people of color.
Faced with multiple lawsuits claiming various flaws in the process, the Governor suspended the initial lottery. He announced that IDFPR would distribute Supplemental Deficiency Notices explaining where applicants missed out on points, and providing an opportunity to correct any identified issues. Unfortunately, this satisfied neither the excluded applicants nor those applicants who had already received a perfect score, and litigation continued. As of May 1, 2022, none of the proposed new adult-use licenses have been issued.
HB 1443 and New Lotteries
In July 2021, the Illinois legislature adopted H.B. 1443 in an attempt to address social equity concerns and expedite the issuance of dispensary licenses. It established procedures for three adult-use dispensary lotteries to occur in July and August of 2021, in which a total of 185 adult-use dispensary licenses were to be issued.
The first lottery, for 55 new licenses, included only applicants that received 85% or more of the available points. The second lottery, also for 55 additional licenses, included applicants that received a score of 85% or higher and met the ownership and control requirements for Social Equity Applicants. Applicants that qualified for social equity status solely by hiring qualifying employees were excluded from this lottery. The final lottery, for the original 75 licenses, included the 21 applicants who initially received a perfect score, as well as an additional 134 applicants who perfected their application using the Supplemental Deficiency Notice process. Although IDFPR announced the winners, none of the licenses have been awarded yet due to the ongoing litigation.
More recently, on March 15, 2022, Governor Pritzker announced another planned lottery process to occur later this year to award 50 new adult-use dispensary licenses. The proposed rules governing this process were released on March 25, 2022, and include a new, simplified online application process and an administrative review provision designed to help address issues without the need for litigation.
Status of Litigation
As Illinois attempts to streamline its processes, three different ongoing lawsuits involving Illinois dispensary licenses have continued to progress, one of which threatens to upend the entire lottery process.
First, Wah v. IDFPR claims that the additional points given to veteran-owned applicants create a special class of applicants in violation of the Illinois constitution. The most recent relevant development, in this case, was the stay order that prevents IDFPR from issuing any of the 185 dispensary licenses until the issues raised in Wah have been resolved, which remains in place.
A second lawsuit, which is really a group of fourteen different lawsuits involving dozens of plaintiffs consolidated into one “supercase,” challenges the application process on the basis of alleged violations of Illinois administrative law, and asks that the plaintiffs be provided additional licenses beyond the 185 currently allocated. The judge in that case recently had the opportunity to take control over the stay in Wah, but declined. As a result, the resolution of this case will affect only the parties to the case, and will not affect the larger issue of the stayed licenses. At a recent hearing, the parties discussed a supplemental lottery process for the plaintiffs that would attempt to recreate the odds that those plaintiffs would have faced in the original lottery, had their applications not been improperly excluded, and the fact that plaintiffs would need to succeed in that lottery in order to have a viable claim to a license. IDFPR and the judge indicated their belief that this lottery should occur soon so that unsuccessful plaintiffs could avoid further litigation costs. However, not all plaintiffs were amenable to this proposal, raising the issue that if none of the plaintiffs were successful in the proposed lottery, IDFPR might never be held to account for any flaws in the application process.
Finally, a third case was recently filed that could upend the entire licensing process. That case, Finch, et al. v. Mario Tretor, Acting Secretary of IDFPR, 1:22-cv-0158 (N.D. Illinois, March 23, 2002), claims that granting additional application points to Illinois residents (as well as the Illinois residency requirements included in the qualifications for social equity status) should be deemed unconstitutional under what is known as the “dormant commerce clause” because it unfairly discriminates against residents of other states. The plaintiffs in Finch have already won a similar case in federal court challenging similar requirements in Missouri, so those watching the case closely are concerned that this court may reach a similar result. In addition, because this case challenges the constitutionality of the entire scoring process, a win for the plaintiffs could mean a reset for the entire licensing process, even affecting those 185 licenses that have already been awarded.
All that interested Illinois applicants can do now is wait, and hope that these issues are resolved soon and licenses are finally released. Once that happens, expect a flurry of activity as those lucky enough to receive a license seek capital and expertise, with some likely to explore options for selling their newly-acquired license.
Andrew Halbert is a member of the National Cannabis Law Practice at Fox Rothschild LLP, based in its Chicago office. He focuses his practice on representing public and private clients, including cannabis companies, in a broad range of transactions including: state and local cannabis regulatory and licensing transactions; stock and asset acquisitions and divestitures; mergers; tender offers; private equity investments; reorganizations; private offerings; and financing transactions facilitated through the issuance of equity and debt securities.
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.
Video: NCIA Today – Thursday, May 5, 2022
¡Happy Cinco De Mayo! 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: Puff Couture LLC – LaVonne Turner
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 LaVonne Turner, President of PUFF COUTURE LLC. Before my interest in cannabis, my career was focused on marketing, communications, public relations, event management, and community advocacy. After working for non-profit and for-profit organizations, I became increasingly interested in public policy and community advocacy to help the underprivileged and unrepresented. I hold a bachelor’s degree in executive leadership/marketing, a master’s in public administration, and currently working on a master’s degree in clinical mental health counseling. I am a block club president and serve on a couple of boards and committees. I have spent many years mentoring children and youth.
My journey into the cannabis industry as an entrepreneur started when my mother began experiencing debilitating pain, and her only relief was prescribed medication. While I still haven’t found the right product to deal with her pain, I have taken great interest in the industry and the incredible products born from seeds. I plan to open a microbusiness and consumption lounge in Detroit, MI, that serves aromatic, exotic strains and infused products.
What unique value does your company offer to the cannabis industry?
PUFF COUTURE LLC is a minority-woman-owned cannabis company slated to open a microbusiness and consumption lounge in Detroit. We want to bring a sophisticated community-driven cannabis business that offers a contemporary atmosphere for clients. It will convey the importance of the cannabis flower by providing a chilled environment for clients to consume unique, flavorful, and aromatic cannabis. PUFF COUTURE will support mental health counseling, volunteerism, public policy, and minority representation in the cannabis industry, especially among women. According to a recent special report by MJBbizDaily Women and Minority Report, only 3.8% of Blacks or African Americans are cannabis business owners, the percentage of minority women in Michigan is even smaller; our responsibility is to open doors for future female entrepreneurs and people of color.
What is your goal for the greater good of cannabis?
PUFF COUTURE LLC would like to change the face of cannabis through participation and contributions to critical public issues that affect the community values of our clients and neighbors, as well as giving back through donations and mentoring. The organization will support issues affecting women who suffer from traumatic situations through our community advocacy campaign. Still, there will be plenty of time for spoken word, intimate art shows, parties, etc. PUFF COUTURE will take care of our people, support the cannabis industry, and create an atmosphere of excitement.
What challenges do you face in the industry, and what solutions would you like to see?
A few years ago, I couldn’t get anyone to advise me or take the time to mentor me. However, after many no’s, I have been blessed to partake in the City of Detroit’s Homegrown cannabis program and training by the Detroit Cannabis Project. LUME’s Vice President of Retail Operations, Michael Dowdell, has taken the time to speak with me and allowed me to observe the business sales and operations of one of the company’s recreational and medical stores. That first opportunity let me know I could continue to grow in the cannabis industry given a chance.
I have continued to expand my knowledge about cannabis, staffing, and cultivation through a mentorship provided by one of the award-winning co-owners of Oak Canna, LLC/CannaBoys, Jason Tueni. Mr. Tueni has devoted a great deal of time to educating me about caring for the flowers at every growth stage. I am currently interning at the cultivation center, which allows me to see everything first-hand, e.g., flowers, business, human resources, all aspects of creating and running a successful microbusiness and consumption lounge. These types of opportunities should be more readily available. I often hear people complain about not having access to mentors, which I completely understand. I joined the CRA DEI workgroup and from there was able to make a connection to LUME and Mr. Dowdell, who by the way is African American, and I asked for the opportunity. I did the same thing with Mr. Tueni. I was at a Weedmaps event and started talking to people and let them know I was looking for a mentor and from there, introductions were made. We met a few times for two to three hours, a couple of months after, and I asked if I could intern at the cultivation center and he said yes. We continue to meet, although not as often, and I see him on a regular basis. Hopefully, when the time is right, we will partner on a project.
Both of these events have provided a great deal of information for me in preparation for my future cannabis venture and I won’t stop reaching out for more knowledge and advice. Knowing how mentorship has helped me, I will continue to look for opportunities to build my business and while doing so pay it forward by mentoring future Detroiters interested in the cannabis industry. As important is my need to stay involved in public policy and community advocacy.
Why did you join NCIA? What’s the best or most important part about being a member of the Social Equity Scholarship Program?
I joined the NCIA to learn and network. Through the social equity scholarship, I serve on the DEI Committee and am also serving on the Cannabis Regulatory Agency-DEI Workgroup for the state of Michigan. The weekly social equity meetings held by the DEI Director are informative and build camaraderie among social equity entrepreneurs. The added weekly conversations help push to get to the finish line. I believe many social equity members will have an opportunity to work together in the future.
I look forward to growing with the National Cannabis Industry Association.
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.
NCIA Deputy 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.
This episode of NCIA Today is brought to you by Senseon Secure Access, offering concealed protection, monitoring, and workflow management for dispensaries. Senseon is ready to provide you with an exceptional customer experience, plus improved efficiency and compliance, not to mention slim and modular aesthetics. Learn more about their security solutions and cost benefits at Senseon.com.
NCIA Partners with Green Enterprise’s HBCU College to Career Initiative
This week on Thursday, April 7, 2022 kicks off the first event in a partnership between NCIA and Green Enterprise’s HBCU College to Career Initiative to bring career empowerment to HBCU students and alumni (Historically Black Colleges and Universities) starting at Chicago State University.
This significant initiative expands opportunities for underrepresented Black and Brown people in the cannabis industry. In a series of on-campus events at HBCUs around the country, the College to Career Initiative will assemble prominent Black entrepreneurs, state officials, and thought leaders to discuss solutions to create a point of entry in the growing cannabis industry, as well as substantial pathways to success.
Join us on April 7, 2022 at Chicago State University for a dynamic day where you can get up close and personal with prominent Black advocates and entrepreneurs for career advancement in the industry!
You can expect to network throughout the day and join intimate conversations in the afternoon with experts on how to use YOUR unique skills to break into the industry. NCIA leaders will be speaking, as well as hosting “office hours” with students and alumni interested in discussing the best pathways to break into the industry. This event is a continuation of NCIA’s Equity Workshop Series, the live, in-person component of our equity scholarship and mentorship program.
Creating a Pipeline to Generational Wealth
“The goal here is to create a direct pipeline of opportunity from black and brown students and alumni to our member companies and resources,” says NCIA DEI Manager, Mike Lomuto. By now most of us are aware of the vast underrepresentation of Black and Brown communities in the upper levels of the cannabis industry. This initiative is a way to build a foundation, starting at the ground level with students coming out of educational institutions gaining direct access to opportunities that might otherwise be out of reach by bringing these prominent Black entrepreneurs and cannabis leaders in person to meet with these students.
When Mike and Andrew Farrior, co-founder of Green Enterprise Magazine, began conversations in the Fall, they aligned on the deep commitment to expanding real opportunities for folks to have access to building generational wealth. Green Enterprise, operated and produced by Digital Venture Partners and Black Enterprise, then announced the Green Enterprise College to Career Initiative. This series of on-campus events will tour HBCUs across the country in 2022, creating a point of entry in the growing cannabis industry, as well as substantial pathways to success. The timing of this couldn’t be more relevant, as many of the HBCUs are in the Northeast and Southeastern states that are coming online with cannabis programs, and as the tour gets established we will be there right on the ground providing access to the industry.
The Unique Opportunity for NCIA Members
NCIA will provide adapted versions of our Equity Workshop Tour at these HBCU events. The in-person component of our equity scholarship and mentorship program allows us to engage with social equity applicants and operators, as well as the community at large on the ground, in different regions in the country with the goal of addressing specific needs of the community while connecting them to resources. “So this is why it was such a good fit for us to make this partnership. We hope to connect with Black leaders in the industry who may be interested in joining NCIA and strengthening our mission together,” says Mike.
NCIA is composed of thousands of cannabis industry companies that are searching for interns, employees, and partners. NCIA has the unique ability to represent small businesses in all different sectors all over the country. There are many opportunities throughout the NCIA network for people to enter and advance in the industry from a variety of entry points. Being involved in this historic initiative allows us to bring people to the table that may not have otherwise had the ability to partner with Andrew and Green Enterprise’s initiatives. When Andrew brought this opportunity to Mike, and Mike subsequently brought it to NCIA’s member base, the response was immediate and exciting. “People are ready to just give and do whatever they can to help with this initiative, and bring the cannabis industry to these campuses in whatever way Andrew thought we should do.”
The HBCU College to Career Initiative Tour Dates
These historic events at HBCUs will be taking place throughout the remainder of 2022, and underline a variety of conversations and lectures covering a wide range of topics, from entrepreneurship to cannabis marketing, to building an inclusive industry that began at Southern University in Baton Rouge, LA in February and will continue on to Chicago State University this April 7th, presented by Cresco Labs. The CSU event will be held in conjunction with the predominantly black two-year college, Olive-Harvey. The tour will then make additional stops at Florida A&M University on April 20th, and Medgar-Evers College on April 30th, both being powered by Massachusetts-based operator, Curaleaf.
Cresco Labs, the presenting sponsor for Chicago State University and Olive-Harvey College, will promote significant conversations and initiatives and hand out materials to initiate in-earnest partnerships between cannabis operators and HBCUs and develop a direct, effective talent pipeline into the industry.
Spotlighted topics such as social impact and entrepreneurship, as well as, economics and investing, will be covered. The full schedule is available at GreenEnterpriseHBCU.live:
Chicago State University & Olive-Harvey College – Chicago, IL
Thursday, April 7, 2022
Florida A&M University – Tallahassee, FL
Wednesday, April 20, 2022
Medgar-Evers College – New York, NY
Saturday, April 30, 2022
Sponsorship and partnership opportunities are available for this specific initiative and NCIA’s programs. Also for our members interested in becoming involved, please reach out to Mike Lomuto, DEI Manager.
We’re excited to get our members engaged with this initiative to create solid pipelines at this historic point in the industry.
(Another) Historic Week In Congress for Cannabis Reform
Photo By CannabisCamera.com
By Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations
Usually, progress is slow in Washington, D.C. However, that has not been the case lately! Within the last week, the U.S. House of Representatives has passed both the Marijuana Opportunity, Reinvestment and Expungement (MORE) Act and the Marijuana Research Act! They passed by a vote of 220-204 and 343-75, respectively. Let’s take a look at the bills and what’s next for them:
The MORE Act
Last week, the MORE Act came to the House floor for the second time in history. It was first voted on in December 2020, when it passed by a margin of 228-164.
Revisions from the last session include the removal of a provision that would have allowed federal regulators to deny cannabis business licenses to applicants who have prior felony convictions. Other changes from the introduced text this session include revisions to property requirements, allowing operators to secure those locations after receiving a federal license.
A number of amendments were offered at a Rules Committee hearing to advance the bill, however, only three were ruled in order. The first passed on a roll call vote and was introduced by Rep. Josh Gottheimer (D-NJ), authorizing $10M for the National Highway Traffic Safety Administration to conduct a study on technologies and methods that law enforcement may use to determine whether a driver is impaired by marijuana.
Another amendment, introduced by Rep. Conor Lamb (D-PA) directs the National Institute for Occupational Safety and Health (NIOSH) to conduct a study on the impact of legalization to the workplace, using states that have legalized recreational use of cannabis as a guide, and requires NIOSH to develop best practices for employers as companies transition their policies related to cannabis, prioritizing employers engaged in federal infrastructure projects, transportation, public safety, and national security. Additionally, it directs the Department of Education to conduct a study on the impact of legalization on schools and school-aged children, using states that have legalized recreational use of cannabis as a guide, and requires the Department of Education to develop best practices for educators and administrators to protect children from any negative impacts.” It passed on a roll call vote.
Another amendment, which failed on a roll call vote was offered by Rep. Jamie Raskin (D-MD) would have required federal agencies to review security clearance denials going back to 1971 and retroactively make it so cannabis could not be used “as a reason to deny or rescind a security clearance.”
While there is currently no companion bill in the Senate, Majority Leader Schumer (D-NY) along with Senators Booker (D-NJ) and Wyden (D-OR) is expected to introduce a comprehensive cannabis reform bill over the next month.
Marijuana Research Act
More recently, the House also passed the Marijuana Research Act sponsored by Reps. Earl Blumenauer (D-OR) and Andy Harris (R-MD). This bill would remove barriers for researchers seeking to apply and get approved to study cannabis, set clear deadlines for federal agencies to act on their applications, and also make it easier for scientists to modify their research protocols without having to seek federal approval.
Last month, the Senate also unanimously passed a research bill: the Cannabidiol Marihuana Research Expansion Act, sponsored by Sens. Feinstein (D-CA), Grassley (R-IA), and Schatz (D-HI). It remains to be seen whether the two chambers will be able to negotiate a deal on these research provisions to send to President Joe Biden.
Whether it’s cannabis research or descheduling, the NCIA D.C. team continues to increase momentum for reform. Interested in learning more about our efforts in D.C.? Consider becoming an Evergreen member today!
Equity Member Spotlight: Modesto Cannabis Collective
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 Deanna Garcia with Modesto Cannabis Collective. I was born and raised in the city of Sacramento. I am a mother of five amazing humans and a loving wife. I started growing cannabis in my garage for my personal use as a patient. In 1996, I found cannabis to help me with the arthritis symptoms and pains I was experiencing. During this time I joined as many cannabis groups as possible such as NORML, Americans For Safe Access, and different collectives around Sacramento and Oakland to educate myself.
20 years later, in 2016, the city of Sacramento allowed me to register as a cannabis cultivator. I purchased a warehouse in the city of Sacramento where I would give tours to government officials and staff to help form the legislation and regulations currently being used today. I later sold my indoor grow to help fund and start Riverbank Cannabis Collective, Dixon Wellness, Modesto Cannabis Collective, Napa Cannabis Collective, Chuck’s Wellness, Tracy Cannabis Collective, Khemia Cannabis Dispensary, Khemia Manufacturing, Yolo Family Farms, and Woodland Roots Farm, along with my best friend and business partner Kimberly Cargile (NCIA Board Member). We have been tremendously blessed by God to win so many cannabis licenses across the Central Valley of California.
What unique value does your company offer to the cannabis industry?
Our companies are unique in that our board’s ownership all comes from an incubator program at A Therapeutic Alternative, a retail store in the city of Sacramento. All of the CEOs started as staff members of A Therapeutic Alternative, some working in the very first dispensaries in California prior to that. As trailblazers, we believe in locking arms and rising together making staff into owners sharing and creating generational wealth. So far we have been successful and able to help over 25 people become owners of cannabis companies and we are not finished.
What is your goal for the greater good of cannabis?
My goal is to help as many people as I can, that have been in the legacy cannabis industry become licensed cannabis business owners before it is out of reach forever. I want to keep spreading education on cannabis and its healing powers. I also seek to help bring safe access to every part of California, by attending one Board of Supervisors and or City Council meeting at a time to educate the officials and citizens.
What kind of challenges do you face in the industry and what solutions would you like to see?
For owners and operators that have been in the legacy cannabis industry and are now becoming owners of newly regulated cannabis businesses, the challenge they face is the cost. The capital is just not there to start up, or for upgrading to the new regulations. The banks will not work with the industry and we can not go to the small business administration. The cost is so much more money to become a licensed regulated cannabis business and the obstacles are extreme. We are now going up against billion-dollar companies for licenses in cities and counties across California. Before you know it, all of the California cannabis industry will be taken over by huge corporations and billionaires. We are just trying to help the ones still hanging on. I am working on the Diversity Inclusion Social Equity team with the California Cannabis Industry Association and with the city of Modesto to help form more social equity in the state. I would love to see a state equity program to include the people of every city and county. The same guideline, the same application. One state-funded and run equity program.
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 the National Cannabis Industry Association to help build reasonable responsible regulations across the United States. I enjoy the supportive community through the weekly calls with other Diversity Equity Inclusion members and appreciate the opportunity to access NCIA’s full member benefits. The best part is the overall support of NCIA’s DEI program in order to help begin to alleviate the injustices from the war on drugs by those most impacted. And of course to free a loving, caring, and healing plant from over-burdensome regulations and corporate greed.
Video: NCIA Today – Thursday, March 24, 2022
NCIA Deputy 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.
Committee Blog: Social Equity Perspectives on Interstate Commerce – Part 1
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. Historically, people chose to legalize cannabis as a method of legitimizing the illicit cannabis market. Beyond the message that “Black Lives Matter,” the issue of the federal legalization of marijuana means, fundamentally, that the federal government must spearhead meaningful policies in diversity, equity, inclusion, and social justice, to balance the scales of injustice during prohibition and early legalization efforts by the States.
Further, the Biden Administration’s priority of respecting the sovereignty and self-governance of tribal nations means federal trust and treaty responsibilities may finally be met by regularly having meaningful consultations with tribal nations to create federal policy. Thus, the inclusion of tribal nation’s representatives is imperative when creating federal policy to ensure their rights are secure and there is parity amongst states and tribes.
Any descheduling or legalization framework must hold a social equity objective that is clear at the core of its function: To create 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.
Sadly, as written currently, all proposed federal bills fail to meet this critical objective.
As soon as the federal government deschedules marijuana, it falls under Congress’ constitutional purview to regulate interstate commerce. Marijuana included. This is likely the ONLY opportunity available for those impacted by the war on marijuana to balance the scales of historic injustice, by providing an opportunity to participate in cannabis business ownership in a meaningful and valuable way.
If social equity is not adequately addressed in a federal act, it would require a secondary bill to tax and regulate interstate commerce activities. This would waste precious time and open a door to unregulated and taxed activities until congressional consensus and control are established. We have seen mistakes like this lead to disaster already amid state markets who leapt before ensuring a safety net. It also would NOT guarantee that social equity would be addressed in a second bill under new congressional, senate, or executive purview.
More importantly, the projected market cap of the U.S. cannabis industry is projected to be $85B by 2027 and was $18B in 2020. To put that number in perspective today, the largest tobacco company’s market cap is $95.6B – that’s over 5x the market cap of the whole cannabis industry. Similarly, the largest beverage distribution company has a $45.5B market cap – or over $2.5x of the current cannabis industry cap.
Both of these “big businesses” are in the cannabis industry already and they are preparing for federal legalization. The moment cannabis is de-scheduled, it quickly becomes an “extinction event” for social equity unless guardrails are put in place in the first Federal Act to offer social equity a fighting chance.
To avoid needless delay, to leverage effective taxation and regulation, to protect social equity from rapid market consolidation and control, and to spearhead well-thought-out and innovative ideas to address the inequities of the cannabis industry, the National Cannabis Industry Association’s Diversity Equity and Inclusion Committee (DEIC) presents these considerations to amend any proposed federal act – in order to preserve key concepts central to addressing interstate commerce and the short-falls of previously enacted social equity programs.
The Problems with Current Social Equity Programs
In analyzing the social equity programs undertaken at municipal and state levels so far, the NCIA’s DEIC has found multiple shortcomings in achieving the goal of generating new generational wealth for as many people who have been systematically discriminated against during the prohibition era of cannabis.
Namely, the following major issues continue to prevail:
Social equity applicants who are unqualified or do not participate meaningfully in the ownership or operation of the cannabis business. This can be because of the following reasons:
A lack of experience or expertise in business skills necessary to operate
A lack of experience or expertise in regulated cannabis operations
Fear of continued persecution and distrust related to trauma from being victimized by the war on drugs.
Based on the fact cannabis arrests have and still disproportionately affected BIPOC community members.
This causes many traditional, large, and privileged Multi-State Cannabis Operators (MSOs), in addition to established market entrants (Tobacco and Alcohol) as well as Special Purpose Acquisition Funds (SPAC’s) – collectively referred to as “mega players” – to decide to “take the wheel and drive” the cannabis licensing process and to put the social equity operator in the proverbial “back seat.” Another issue that remains unaddressed and underlies challenges in successful social equity programs is that:
Social equity operators do not have access to financing to meaningfully contribute to capital or operating expenditures to partnerships with cannabis companies who have capital and expertise.
This is certainly in large part due to generational prohibition and lack of access in being underprivileged.
Prohibition also impacts financing which systematically discriminates against the disprivileged; regardless of their interest to participate in the cannabis industry.
These individuals were prohibited from entering the legal market (when barriers were lower) and were initially labeled as “undesirables” because of past criminal history. This gave the cannabis industry and culture away to people who never suffered a day in the war on drugs.
The lack of access to education, experience, and wealth often drives the existing “mega players” who “hold the keys” to expertise and wealth, to justify operating agreements that contain provisions that make the social equity licensee’s position dilutable in the event they cannot meet their operating or fiduciary duties. Which brings up the third underlying problem in social equity programs which is connected to the above factors:
2. Attracting and grooming social equity candidates to qualify for licenses only to then leverage the applicant out of the licenses, is often how “mega players” skirt around social equity provisions. The justification in doing so is due to the above two factors and is justified as “what is best for business” by traditional operators expanding their footprint through social equity licensing.
In the social equity conversation, these partnership agreements are often referred to as “predatory operating agreements” which refer to the manner in which many “mega player” operators, knowing social equity applicants cannot bring education, experience, or money to the table, systemically target and groom qualified social equity applicants into delusions of wealth participation in cannabis only to obtain a license and then proceed into diluting the social equity partner – rather than educating them, providing them experience, or helping them obtain the wealth to contribute as equals.
Mega players, multi-licensed cannabis businesses, and vertical cannabis businesses may also engage in “social equity colonialism” in which they create “incubator programs” to educate, train, possibly fund, or partner with social equity entrepreneurs only to have them compete against one another in “pitch competitions” in which the mega player can cherry-pick the most controllable or affordable operator or otherwise leverage them to benefit including using taxpayer funds granted by the state or through discounts on licensing and/or taxes. Too often, the intent is to “tokenize” social equity operators, rather than empower them as equals.
Whether intentional or not, the impact of reducing social equity applicant participation after using them to obtain social equity licensing is a commonplace practice and shortfall of the programs analyzed by the DEIC.
To solve these problems, the DEIC acknowledges that the motivation for those in power to remain in power does not incentivize them to provide a truly equitable partnership simply because a program exists to do so. To address these diluting agreements, we recognize that the Government must play a role in addressing the underlying factors which justify the behavior driving “predatory operating agreements” and “social equity colonialism”.
Indeed, federal legalization and the regulation of interstate commerce with social equity at the forefront may be the last opportunity to address the harms caused by prohibition nationwide and the inequity of governments refusing to address social equity in cannabis. Similar to the Civil Rights Act of 1964, the victims in the war on cannabis cannot depend solely on state and local governments to address social equity.
Over the next two parts of this series, we will outline a framework of components that may be amended or included in a federal legalization bill to resolve the problems in social equity identified and to provide a comprehensive reform for permitting interstate commerce and addressing the inequity prevalent in the cannabis industry.
Read more in Part 2 and Part 3 of this blog series.
Equity Member Spotlight: Euphorium Oakland
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.
Euphorium Oakland is a Black-woman owned, Black family-operated delivery-only concierge service founded by mother and son duo & HBCU graduates, Tee Tee Brown and Bryce Savoy in 2016. Having over 20 years of experience in pharmaceutical sales, my mother wanted to use the skills she acquired over a couple of decades to help heal people.
As a single mother and primary caretaker for her mother, she saw an opportunity to further her purpose of service. For me, being an independent rapper and Founding Member of Bay-Area-based non-profit organization, The Black Neighborhood I saw an opportunity to create a pathway to generational wealth, as well as be able to empower and uplift others, which is at the heart of everything I do.
What unique value does your company offer to the cannabis industry?
Euphorium offers superior customer service and an unparalleled family touch. With her prior background in sales, my mother offers a wealth of knowledge to anyone looking for advice and direction about which products to purchase for their specific needs.
Our primary offerings are that we have high-quality products at affordable prices, which cover all cannabis categories, serve the local community through our philanthropic endeavors, and ensure anyone who does business with us feels like family. We also strive to go above and beyond to make sure our clients’ needs are met. Anyone who shops with us can feel reassured knowing that they are spending money with a fully Black-owned company, that epitomizes what it means to be Oakland natives.
What is your goal for the greater good of cannabis?
Our goal for the greater good of cannabis is to create a blueprint for other Black people looking to enter the industry, at any level. With so few of us being business owners, it is not enough for us alone to thrive; we want others who look like us to also have a seat at the table.
What kind of challenges do you face in the industry and what solutions would you like to see?
Like many of us who are small business owners understand, access to consistent capital is everything. With customer spending habits fluctuating now more than ever, consistent revenue is for and far between. However, maybe even more important than that is being able to market and promote our business/services in effective ways to gain new clients. Being that this is the first business that my mother and I have operated, there are a lot of things we had to learn by trial and error. Having proper incubation/business consultation would help us tremendously. All in all, a solution we would like to see is city and county agencies truly being intentional about providing equity businesses and entrepreneurs with the tools and resources to become successful in an ever-changing industry.
Why did you join NCIA? What’s the best or most important part about being a member through the Social Equity Scholarship Program?
“Equity is not a competition, it’s a community.” – A quote from a gentleman I heard at the March 10 Power Hour session. This is the exact reason why we joined NCIA. We have found more often than not, equity business owners tend to operate in silos: for one reason or another, we do not communicate with each other, although we are almost always experiencing the same challenges.
The best part about being a member of the Social Equity Scholarship Program thus far is the opportunity to build relationships with people from all walks of life and sectors of the industry. Also, from the information we gathered in the short time we have been a part of the program, our success is not predicated upon our popularity. We are looking forward to what is next!
Video: NCIA Evergreen Members Lobby Congress Virtually
Due to ongoing COVID-19 and Capitol security restrictions, efforts to lobby Congress on cannabis policy issues have been challenging. Though logistics prevent us from hosting our traditional annual fly-in event in D.C., with hundreds of cannabis industry professionals navigating the halls of Congress, members of Congress themselves are still able to hear from their constituents through virtual means. Recently, NCIA’s Government Relations team worked with our Evergreen Members to guide them through the process of meeting with members of Congress to continue to tell our stories and share our concerns for our industry.
Hear more about their experiences in this video with insights into how those meetings went.
NCIA’s Evergreen membership is for leading businesses looking to make a meaningful investment in shaping policy for the cannabis industry. This premium membership plan provides your company with a seat on NCIA’s Evergreen Member Roundtable, with exclusive access to private briefings from members of Congress, access to NCIA’s lobbying team, invitations to political events, special membership concierge service, and more.
Video: Voices of NCIA’s DEI Scholarship Recipients
Laws and regulations need to be designed and implemented with equity and fairness in mind. NCIA’s Diversity, Equity, Inclusion Committee is focused on recommendations that will create access to opportunity for those most adversely affected by cannabis prohibition.
A more diverse cannabis industry means a more prosperous one. We aim to foster a more equitable industry where participation and success are possible regardless of the numerous factors that have historically held many people, businesses, and communities back.
At the core of NCIA’s Diversity, Equity, and Inclusion Program is our Equity Scholarship Program, which provides our Equity Members one year of complimentary membership to NCIA. Hear from some of the business owners who became a part of NCIA’s DEI Scholarship Program in this video.
If you share our vision for a more inclusive and equitable cannabis industry, please support NCIA’s DEI program through sponsorship. DEI program sponsors not only help us continue to provide complimentary memberships to equity operators, but it also comes with benefits! Click here to learn more about the program.
Equity Member Spotlight: YS Cannabis Delivery Services
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.
Originally from Ecuador, Yadira Elizabeth Silva Leon, I came to the United States when I was only 16 years of age. I graduated with honors from Sheridan High School and Arapahoe Community College in Colorado. Then I graduated from the American Intercontinental University online, with a BA in Business Administration. I own my construction clean-up company, officially named YS Construction Clean Up Services.
As a single mother of two and minority business owner, I started to become more involved in the world of cannabis after two separate accidents, leaving me with a damaged spine. Doctors prescribed medications and pills that began to damage my nervous system and I started to lose sensation in my legs, inhibiting me from taking care of my children. It was around this time that Colorado legalized cannabis, and after becoming legally accessible, I decided to take advantage of the medicinal benefits of cannabis to calm my pain. Cannabis inspired me to begin a new career in the cannabis industry. Serving people who are in pain by bringing their medicine in the comfort of their home in a timely fashion became an interest and passion of mine.
What unique value does your company offer to the cannabis industry?
The health and safety of our patients, customers, and employees is our top priority. We see the future where our company impacts the wellbeing of our drivers and the life of our planet. That is why YS Cannabis Delivery Services was created.
We specialize in transporting cannabis products business to business and business to customer. We also collect empty containers from customers to recycle properly, and return clean, disinfect, and sterile containers for businesses.
What is your goal for the greater good of cannabis?
Securing the life of carriers, and our environment. We are working on a new security system where we use AI (Artificial Intelligence) and VR (Virtual Reality) to deliver cannabis from business to business with efficiency and security. While we are expanding security to protect cannabis shippers and vehicles against prohibited intrusions, we are also making sure plastic containers get to the right place and be recycled properly.
What kind of challenges does the industry face, and what solutions would you like to see?
COVID-19 created many challenges for most industries, but the cannabis industry faced more threatening challenges such as violence and robbery. What we would like to see is the safety of cannabis employees become a priority. That is why we are looking into virtual reality as a security measure.
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 the National Cannabis Industry Association to collaborate in the development of my company at a national and international level. Because of NCIA, I was able to receive access to the resources my business needed to grow and thrive. I was able to speak with leaders, consultants, and other like-minded professionals.
Member Blog: Diversity and Inclusion Emerge as Major Themes in Cannabis
While MGO put together its annual Cannabis 50 Impact Report of organizations and individuals pushing the cannabis industry forward, we were able to acquire new insights from some of the most influential leaders in the industry, like Kim Rivers, founder, chairman, and CEO of Trulieve; Berner, co-founder and CEO of Cookies; and Troy Datcher, CEO of The Parent Company. A clear trend that emerged in the report is the number of honorees focusing on social equity. Those who are contributing to the social equity community are bringing awareness, fostering inclusion, increasing diversity and expunging criminal records for cannabis convictions.
Diversity Where it Matters
Visual artist, hip-hop pioneer, and filmmaker Fred Brathwaite aka Fab 5 Freddy wasn’t wrong when he told us, “The biggest obstacle is making sure we’re all focusing on social equity and inclusion so people of color can benefit from the [cannabis] industry, as they’ve been the most victimized for being a part of it.” At this point, the industry at large is starting to acknowledge the debt it owes people of color.
Because underrepresented populations have borne the brunt of cannabis prohibition and many are not reaping the economic benefits of legalization, the logical step is to increase people of color ownership in the industry.
One of the biggest barriers in the industry is the cost of entering the market. Launching a dispensary or cultivation business requires anywhere from $750,000 to $1 million, and acquiring licenses isn’t easy. State and local governments must even the playing field, and although some states have incorporated social equity programs into cannabis legislation, many say the programs are falling short.
Building a Backbone Through Programs and Government Uniformity
So where do we go from here? Some organizations, like The Parent Company, are focusing on discovering the industry’s future entrepreneurs of color, providing the capital and mentorship necessary to build a more equitable and diverse industry.
If we let it, cannabis can be the new economic backbone for many communities, be it on the city, county, or even state level. Troy Datcher, the CEO of The Parent Company, notes where things need to progress. “There’s still so much work to do collectively to improve regulations, taxation policies, and safety,” he said. “But most importantly, we must work together to ensure the industry remains committed to inviting a diverse community to participate as the landscape takes shape.”
The industry is also supporting organizations and programs focused on dispensing education and support to budding minority entrepreneurs — some of which are mentioned in MGO’s Cannabis 50, like Our Academy presented by Our Dream. Hilary Yu, founder of Our Academy, told us, “We have this unique opportunity to carve out generational wealth opportunities for the communities who have been harmed by cannabis legislation,” and she knows building and supporting new leaders is key.
Making a Change
MGO is enthused to see so many organizations and individuals making tangible progress toward social equity and inclusion. If you’re interested in learning more about the honorees in this year’s Cannabis 50 report, click here. For those building a better future for the industry, read the section “Doing Good.”
Morgan Stinson is a social impact manager, leader of the MGO Diversity, Equity & Inclusion program, and co-creator of The Future Game. She combines a professional background in accounting and finance with a passion for developing actionable solutions for creating professional and educational opportunities for minorities and persons from disadvantaged backgrounds.
Equity Member Spotlight: Toni Brands with Toni Scott
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 grew up in Connecticut in the 70s and was repeatedly reminded of the cannabis stigmas, witnessing others partake in regular consumption, yet never noted any of the proclaimed stigmas; in fact, it appeared the exact opposite.
I’m a Master’s prepared Registered Nurse and Certified Yoga teacher, working in the healthcare industry for over 30 years. As a child and well into adulthood, I suffered from debilitating eczema, anxiety, and depression, treated with high-dose topical steroids, sedatives, and antihistamines, eventually leading to overuse. In the mid-’90s, I smoked my first joint; I also began pursuing my first nursing degree.
A few years after graduation, I began working as a travel nurse in Newborn Intensive Care Units across the U.S. Although I was very aware of the relief cannabis brought to my physical and mental wellness, I utilized it with underlying shame, guilt, and fear of a positive urine drug test, a legal pre-employment requirement for nurses.
By the early 2000s, I suffered a traumatic professional burnout; at the time, my health was poor, my stress-induced eczema exacerbations left me with painful cracked skin on my face, hands, arms, and legs. I was prescribed the highest dose of topical steroids and antihistamines with no resolve; I was a mental and emotional wreck.
Unfortunately, that wasn’t my first time feeling defeated in my skin; as a child, I ingested various prescribed medications. I can vividly recall feeling like a walking science experiment, constantly misdiagnosed and prescribed drug after drug. Nothing worked; in fact, the treatments left me worse off; it wasn’t until the professional burnout that I decided to take charge of my physical, mental and emotional health. I stopped taking ALL prescribed and over-the-counter medications; instead, I began to intentionally utilize yoga, meditation, dietary changes, and cannabis for self-care.
I began to dig deeper into the plant, educating myself about the endocannabinoid system phytocannabinoids, researching the history, and regular visits to local dispensaries. It was during the dispensary visits that I identified a massive pain in Gen X and Baby Boomer populations. Stigma, fear, and uncertainty keep many in this demographic away from reaping educational and wellness benefits of a healthy balanced endocannabinoid system, incorporating phytocannabinoids, physical movement, stillness, and creative expression.
I launched my brand to become the sought-after wellness thought leader, educator, and advocate for cannabis health equity in communities most affected and continue to be affected by the war on drugs.
What unique value does your company offer to the cannabis industry?
I bring my personal experiences of the therapeutic effects I’ve received from cannabis. As a nurse, I understand human anatomy and physiology, including the endocannabinoid system. Through continued education, I’m well versed in the relationship between endocannabinoids and phytocannabinoids and the effect they have alone and together on human wellness. I understand how incorporating movement and stillness practices in partnership with cannabis can provide many health benefits.
What is your goal for the greater good of cannabis?
I have three primary goals for the good of cannabis.
Wellness Thought Leader – As an aging woman who utilizes many Eastern wellness practices, my goal is to share with others a new approach to aging, using my handcrafted CBD-infused topical skin products, yoga, meditation, and creative expression practices.
Education – Cannabis stigma is a significant barrier between acceptance and usage in Gen-X and Baby Boomer populations. It’s my goal through easy to comprehend education, storytelling, retreats, and practice to begin breaking these barriers. Including educating our community leaders, political figures, dispensary owners, and religious leaders.
Advocacy – Cannabis health equity is not something Black and Brown folks should need to beg for; it’s my goal to be a voice for the voiceless, actively work towards better health and wellness in communities that are often overlooked when it comes to education, yet flooded with legal and illegal access to cannabis without any instruction or understanding. The lack of economic, social, and political health equity in these communities is a recipe for failure as adult use becomes legal and the impending federal legalization. We can’t afford to wait and see this out; we must address cannabis health equity now.
What challenges do you face in the industry, and what solutions would you like to see?
Unfortunately, being an African American woman in this industry is a challenge. My personal experience with the plant, professional education, and long-standing career in preventative wellness doesn’t seem to hold much weight. The industry is more vested in the marketing and sales of cannabis, touting social equity along the way for good measure. That’s not enough; cannabis health equity, education, resources, and sustainable outcomes must be provided. I’d like to see multi-state operators hire diverse directors of health services to their c-suite. A diverse leadership team can provide a balanced focus on cannabis social and health equity that serves the industry and the end-users.
Why did you join NCIA? What’s the best or most important part about being a member of the Social Equity Scholarship Program?
I joined NCIA for the opportunity to meet, learn, grow, and collaborate with other industry professionals. The membership fees can be steep for those bootstrapping, and I wanted to see what NCIA was about and if they walked the talk before committing to a full membership. It’s been a fantastic journey so far. I’m on the Education Committee, its retail sub-committee, and health equity working group. Our weekly social equity “Power Hour” is highly beneficial, a safe space to collaborate and support each other. It’s also been a great resource, and I appreciate the educational webinars, complimentary conference tickets, and business development support.
Video: NCIA Today – Thursday, February 10, 2022
NCIA Deputy 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.
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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 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.
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 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 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.
For more advice on how to undo the Big Lies and share the Big Truths of cannabis, you can find Breaking the Stigma on 
by Aaron Smith, NCIA’s CEO and Co-founder
NCIA’s editorial department continues the Member Spotlight series by highlighting our 
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.
Andrew Halbert is a member of the National Cannabis Law Practice at 
I am 
PUFF COUTURE LLC is a minority-woman-owned cannabis company slated to open a microbusiness and consumption lounge in Detroit. We want to bring a sophisticated community-driven cannabis business that offers a contemporary atmosphere for clients. It will convey the importance of the cannabis flower by providing a chilled environment for clients to consume unique, flavorful, and aromatic cannabis. PUFF COUTURE will support mental health counseling, volunteerism, public policy, and minority representation in the cannabis industry, especially among women. According to a recent special report by 
My name is Deanna Garcia with 
For owners and operators that have been in the legacy cannabis industry and are now becoming owners of newly regulated cannabis businesses, the challenge they face is the cost. The capital is just not there to start up, or for upgrading to the new regulations. The banks will not work with the industry and we can not go to the small business administration. The cost is so much more money to become a licensed regulated cannabis business and the obstacles are extreme. We are now going up against billion-dollar companies for licenses in cities and counties across California. Before you know it, all of the California cannabis industry will be taken over by huge corporations and billionaires. We are just trying to help the ones still hanging on. I am working on the Diversity Inclusion Social Equity team with the California Cannabis Industry Association and with the city of Modesto to help form more social equity in the state. I would love to see a state equity program to include the people of every city and county. The same guideline, the same application. One state-funded and run equity program.
Morgan Stinson is a social impact manager, leader of the 
I grew up in Connecticut in the 70s and was repeatedly reminded of the cannabis stigmas, witnessing others partake in regular consumption, yet never noted any of the proclaimed stigmas; in fact, it appeared the exact opposite.
Unfortunately, being an African American woman in this industry is a challenge. My personal experience with the plant, professional education, and long-standing career in preventative 