Keeping the Spotlight on Cannabis Banking Reform

by Sadaf Naushad, NCIA Intern

As the middle of May approaches, cannabis advocates, lobbyists, associations, and many more continue to educate congressional offices on the importance of cannabis policy reform.

So far, 37 states have legalized medical marijuana, and 18 states – including the District of Columbia – permit adult recreational cannabis use. With more businesses operating within the industry, one major issue remains: enacting cannabis banking legislation.

The Secure and Fair Enforcement (SAFE) Banking Act addresses the ongoing hurdles between financial institutions transacting with cannabis-related businesses. Congressional lawmakers have been working to include the SAFE Banking Act as a provision to the House’s U.S. Innovation and Competition (COMPETES) Act.

Let’s take a look at where Congress currently stands with the SAFE Banking Act.

This week, 24 U.S. Senators focused their attention on pressuring congressional leaders in ensuring that cannabis banking provisions are enacted into law as part of the broader-scale, House-passed America COMPETES Act.

Led by U.S. Senators Jeff Merkley (D-OR) and Jacky Rosen (D-NV), the 19 Democrats and five Republicans wrote a letter to the leaders, outlining the significance of the SAFE Banking Act, along with its potential impacts on the emerging industry.

The rapidly developing field has led to remarkable job growth, generating significant tax revenue as a result. Thus, if implemented, the SAFE Banking Act would authorize banks, credit unions, and other financial institutions to provide banking services to legally-operating cannabis businesses without facing punishment by federal regulators. Additionally, the banking provision attached to the America COMPETES Act “fosters innovation, supports small businesses, and raises revenue in states that have chosen to legalize cannabis, while reducing safety risks to industry employees and the public alike.”

As of now, financial institutions remain unwilling to transact with cannabis businesses. Due to the indistinct federal and state laws, banks and credit unions fear the regulatory risks associated with the inconsistent policies. Allowing legal cannabis businesses to operate in compliance with state law in obtaining financial services without federal penalties would confront public safety matters, ultimately assisting communities to lessen cash-motivated crimes.

According to the 24 senators, law enforcement administrations have previously addressed the risks accompanying an unbanked cannabis system, many of which include theft, robbery, and violence perpetrated against employees. They emphasize the need to transfer the substantial amount of cash within the industry into the banking system to ensure safe monitoring of accounts pursuant to present federal anti-money laundering regulations and the Bank Secrecy Act.

The National Cannabis Industry Association’s (NCIA) Government Relations team in Washington, D.C. continues to educate Senate offices this week through our Virtual VIP Lobby Days. As we continue to speak with Senate offices on the inclusion of cannabis banking provisions in the America COMPETES Act, our VIP participants are relaying their day-to-day struggles of operating in the cannabis industry. Additionally, participants are pressing for federal de-scheduling, and making sure our nation’s leaders understand the challenges that small and medium-sized cannabis businesses face every day.

Stay tuned for more details about our next Lobby Days coming this September. For more information on NCIA’s Government Relations works or how to get involved please reach out to madeline@thecannabisindustry.org.

Committee Blog: Social Equity Perspectives on Interstate Commerce – Part 3

by Mark Slaugh, iComply LLC
NCIA’s Diversity, Equity, and Inclusion Committee

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.
1. Those with experience may qualify, without the need of an educational provider, and each are evaluated for priority licensing according to the following priority:
  1. Applicants with cannabis and business experience (most qualified)
  2. Applicants with legacy experience but limited regulated business experience
  3. Applicants with business experience but limited cannabis experience
  4. Applicants with little cannabis or business experience (least qualified)
2. If qualified in both, the applicant goes first and can qualify for SBA funding fastest.
3. 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.

NCIA Today is brought to you this week by Senseon Secure Access.

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.

Video: NCIA Today – Thursday, April 7, 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.

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

For more information on attending the upcoming events, please visit https://www.greenenterpriseHBCU.live/.

Get Involved!

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

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

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

Continuing Conversations on Capitol Hill

by Madeline Grant, NCIA’s Government Relations Manager

The National Cannabis Industry Association (NCIA) held its very first Virtual Mini Lobby Days with NCIA’s Evergreen Roundtable members. Before the pandemic and closure of our Nation’s Capital, the Government Relations team planned an in-person annual fly-in every spring, the Annual Cannabis Industry Lobby Days, for all NCIA members. For our first Virtual Mini Lobby Days, it was important to facilitate conversations between our Roundtable and Capitol Hill offices. The Evergreen membership tier is for leading businesses looking to make a meaningful investment in shaping policy for the cannabis industry. Evergreen members receive exclusive access to private briefings from members of Congress, inside information from NCIA’s government relations team, and many more opportunities to participate in the national conversation around cannabis policy.

Now more than ever we’ve seen more comprehensive legislation being introduced at the federal level, on both sides of the aisle, so we wanted to focus on meetings with our cannabis champions but also educate all congressional offices on Capitol Hill. We were able to meet with representatives, senators, committee staff, office staff, and much more. Evergreen members were able to share information, stories, and data to Hill offices.

The NCIA team, Monica Gray with Nice Guys Delivery, Khurshid Khoja with Greenbridge Corporate Counsel, and Christina Hollenback with The People’s Ecosystem meeting with Congressman Dave Joyce (OH-14), a co-chair of the Congressional Cannabis Caucus.

As we hopped on our zoom calls, our main focus was education. The Evergreen Roundtable was able to share stories from their personal experiences in the cannabis industry and directly relate these experiences to the importance of cannabis policy reform. The dichotomy around incremental versus comprehensive cannabis policy reform was a central focus in discussion. As around thirty meetings took place throughout the week, the Government Relations team and Evergreen Roundtable caught up with friends, gained valuable insight, and continued to educate Congress. We took this opportunity to show our support and gratitude for all the representatives and senators who constantly support cannabis policy reform. Furthermore, we educated congressional offices with data, testimonials, and research to highlight the necessity for cannabis policy reform at the federal level. There is no doubt that reform is needed for the cannabis community and NCIA will continue to be a resource to all congressional offices.

NCIA’s 9th Annual Cannabis Industry Lobby Days in 2019 May 21-23 2019.

As we monitor the full opening of Capitol Hill, stay tuned for updates regarding NCIA Lobby Days. The Government Relations team is looking forward to our next Mini Lobby Days later this year for all Evergreen members. If you’re interested in learning more or getting involved in our policy work please feel free to reach out to Madeline@TheCannabisIndustry.org.

Committee Blog: Social Equity Perspectives on Interstate Commerce – Part 1

by Mark Slaugh, iComply LLC
NCIA’s Diversity, Equity, and Inclusion Committee

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:
1. A lack of experience or expertise in business skills necessary to operate
2. A lack of experience or expertise in regulated cannabis operations
3. Fear of continued persecution and distrust related to trauma from being victimized by the war on drugs.
  1. 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.
1. This is certainly in large part due to generational prohibition and lack of access in being underprivileged.
2. Prohibition also impacts financing which systematically discriminates against the disprivileged; regardless of their interest to participate in the cannabis industry.
3. 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.

Equity Member Spotlight: Euphorium Oakland

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!

Omnibus Leaves Industry Hanging

by Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations

Since 2014, federal funding bills, or appropriations bills, have included provisions restricting the Department of Justice from using tax dollars to prosecute or penalize state-legal medical cannabis businesses and patients. Since then, NCIA and others have worked diligently to expand those protections and enact cannabis reform through the budget, with some efforts being more successful than others. Another issue making matters more complicated: the federal appropriations process requires this provision to be approved by congressional process annually, so introducing, lobbying on, and enacting these provisions has to reoccur every year.

Last week, Congress passed the most recent omnibus appropriations bill, which is increasingly used to group together the budgets of all departments in one year. Keep reading to find out what provisions related to cannabis were included (or weren’t!) and why it matters:

PROTECTIONS

If you’ve been in cannabis for a while, you might remember when medical cannabis protections were first enacted in 2014. Back then, the provision was known as the “Rohrabacher-Farr Amendment,” named for then-Reps. Dana Rohrabacher (R-CA) and Sam Farr (D-CA). This amendment forbids the Department of Justice (DOJ) from spending money to prevent the implementation of state-level medical cannabis programs, in addition to removing funding for federal medical cannabis raids, arrests, and prosecutions in states where medical cannabis is legal. To put it simply: the DoJ can’t use any of its money against state-legal, compliant medical cannabis businesses.

So, the omnibus had some good news and some bad news regarding protections for cannabis businesses from the Department of Justice. Good news? Those protections for medical cannabis businesses, patients, and programs remain in place. Bad news? Congressional leaders declined to expand those protections to include all cannabis businesses, despite the fact that the House has voted twice in the past to do so.

WASHINGTON, D.C.

For decades, Congress has used its power and jurisdiction over Washington, D.C. as a bargaining chip and test subject for various policies, and cannabis is no exception.

Washington, D.C. voted to legalize adult-use cannabis via Initiative 71 in 2014. However, because the Constitution gives Congress jurisdiction over the District of Columbia, Washingtonians have been, and continue to be, unable to implement the taxed and regulated sales of cannabis for adults. (That hasn’t stopped a flourishing gray market, but that’s a topic for another blog!)

One Congressman, in particular, has obstructed D.C’s cannabis market: Andy Harris, the lone Republican in the House from the state of Maryland. The “Harris Amendment,” which prevents legal sales from occurring in D.C., has been included in every appropriations bill since – again, despite the fact that House Democrats have voted to strip the language multiple times.

The inclusion and maintenance of this provision – especially while Democrats control both chambers of Congress – is simply unacceptable and inexcusable. To that end, NCIA recently signed on to a letter urging leadership to remove the language. It’s also critical to point out that Washington, D.C. is one of the places where disparate cannabis arrests occur at an alarming rate, making the need for reform even more dire.

EXPUNGEMENTS

A new appropriations amendment that NCIA supported was also included in the most recent omnibus. The language, championed by Cannabis Caucus Co-Chair Dave Joyce (R-OH), would allow JAG funding to be used for the cost of state and local cannabis expungements and record clearing. This is a small but incredible reform that we hope will be the first step in providing justice to individuals impacted by the War on Drugs.

VAPING

The omnibus also included report language related to cannabis. Report language is non-binding and essentially encourages an agency to do something. In this case, Congress is urging NIDA (the National Institute on Drug Abuse) to conduct interdisciplinary research on the relationship between the vaping of tobacco and marijuana, with an emphasis on risk perceptions, decision-making, and neuroscience.

Interestingly, the appropriations process for FY2023 is beginning to get underway already. NCIA will be working with appropriators and other allies in Washington, D.C. to maintain provisions that protect cannabis businesses and consumers while stripping those that deny opportunity and justice to others. Interested in learning more about appropriations, or working with our team on an amendment? Learn more about our Evergreen Roundtable and committees by visiting our website!

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.

To learn more about NCIA’s premier policy-focused Evergreen Membership, please reach out to our team to schedule a call.

Video: NCIA TODAY – Thursday, March 10, 2022

Member Blog: Hemp Cultivators and Processors Get a Head Start in New York Adult-Use Cannabis Industry

by Charles Messina and Jennifer Roselle, Genova Burns LLC

While the Garden State and Land of Steady Habits are convincingly in the lead of the tri-state dash towards adult-use cannabis sales, new legislation passed last week at least gives the Empire State a burst of energy.

There has been much anticipation since the Marijuana Regulation and Taxation Act legalized cannabis in New York for adults last year. But only medical patients in the state can legally purchase products right now. New York’s slow start to recreational sales has reportedly led to even more unregulated products flooding the marketplace, including delta-8 THC — which is banned under NY state law though widely being sold throughout the state.

By Governor Hochul signing Senate Bill 8084A into law on February 22, 2022, the legal cultivation, processing, and distribution of cannabis in New York should be accelerated. Specifically, the new legislation permits hemp cultivators and processors to apply for growing and processing adult-use cannabis, and aims to promote certain equity goals in the process. It creates two new temporary license categories: (1) conditional adult-use cultivator licenses; and (2) conditional adult-use processor licenses. These licenses must be issued by December 31, 2022, and will be valid through June 30, 2024.

Among other requirements, applicants seeking conditional cultivator licenses must be prepared to demonstrate they are authorized hemp growers in good standing. Although they must only show good standing since December 31, 2021, applicants must also show proof of growth for two of the last four years.

Cultivators must also comply with geographic restrictions for growing and are limited to outdoor or greenhouse settings. Outdoor facilities may have a maximum of 43,560 square feet of flowering canopy. Greenhouse canopy may not exceed 25,000 square feet, and can use up to 20 artificial lights. As expected, licensees must also comply with any environmental standards and requirements mandated by the Office of Cannabis Management.

For those seeking conditional processor licenses, licensees must hold an active cannabinoid hemp processor license. This license must have been granted before January 1, 2022. And, as a condition of licensing, transfer of ownership will be restricted through the end of the conditional period. The processor license will allow the acquisition, possession, processing, and sale of cannabis, along with enabling the licensees to engage in blending, extracting, infusing, packaging, labeling, branding, and preparing cannabis products.

In addition, all conditional licensees must enter into a labor peace agreement, participate in an environmental sustainability program and social equity mentorship program. Licensees must also, among other things, become operational within six months from the day they receive the conditional license.

Hemp farmers and processors are no doubt getting a big nugget from the Big Apple. While more regulations on adult-use licensing are anticipated soon, a trail is now blazed for certain New Yorkers in the hemp industry and social equity participants.

Charles J. Messina is a Partner at Genova Burns LLC and specializes in Franchise & Distribution, Agriculture and Cannabis Law. He teaches one of the region’s first cannabis law school courses and devotes much of his practice to advising canna-businesses as well as litigating various types of matters including complex contract and commercial disputes, insurance and employment defense matters, trademark and franchise issues and professional liability, TCPA and shareholder derivative actions.

Jennifer Roselle is a Partner at Genova Burns LLC and specializes in Cannabis Law. She has unique experience with labor compliance planning and labor peace agreements in the cannabis marketplace. In addition to her work in the cannabis industry, Jennifer devotes much of her practice to traditional labor matters, human resources compliance and employer counseling.

For over 30 years, Genova Burns has partnered with companies, businesses, trade associations, and government entities, from around the globe, on matters in New Jersey and the greater northeast corridor between New York City and Washington, D.C. We distinguish ourselves with unparalleled responsiveness and provide an array of exceptional legal services across multiple practice areas with the quality expected of big law, but absent the big law economics by embracing technology and offering out of the box problem-solving advice and pragmatic solutions.

Our firm is proud of its proven track record of assisting multiple clients with being awarded medical licensure in New Jersey, and continuing to counsel clients on the dynamic federal and state regulatory landscape, as well as with corporate transactional, labor/employment, real estate, land-use and other issues.

Given Genova Burns’ significant experience representing clients in the cannabis, hemp and CBD industries from the earliest stages of development in the region, the firm is uniquely qualified to advise investors, cultivators, processors, distributors, retailers and ancillary businesses.

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

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

By Morgan Stinson, Social Impact Leader, MGO

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

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.

Member Blog: Will 2022 Be the Year for Cannabis Consumption Lounges?

By Eric Rahn, Managing Director, S2S Insurance Specialists

Key Questions & Considerations for Those Looking to Ride the Next Big Wave

In the ever-evolving and fiercely competitive cannabis industry, consumption lounges (a.k.a. social or smoking lounges) are generating big buzz. Innovators and proponents for their legalization see it as a prime opportunity to better compete in a saturated market, attract new customers and grow market share. Opponents throw up a heap of red flags, including drugged driving, crime, and the health risks associated with smoke exposure.

Whether this new retail business model blows up in 2022 or not is anybody’s guess. Nevertheless, our industry must prepare for this next big wave in cannabis consumption. As an insurance broker who specializes in the cannabis industry and works with a wide variety of cannabis, hemp, and CBD businesses in every state where marijuana laws are established, we’ve done a deeper dive into the opportunities, and risks versus rewards for businesses looking to ride the potentially next big wave in cannabis.

The Opportunity

The concept of a cannabis consumption lounge is nothing new, really. Similar to a bar that serves alcoholic beverages, consumers at least 21 years of age can not only purchase flower, edibles, etc. from a budtender but also consume these products in a social gathering place. Amsterdam’s “coffee shops” serve as the inspiration and model for cannabis innovation in the U.S. In the Netherlands, however, coffee shops operate in a legal grey area with their products being supplied by an entirely underground cultivation market. Of course, here in the U.S., the burden falls on individual states since marijuana remains illegal at the federal level.

Analysts predict cannabis consumption lounges will be a budding business in states where recreational and/or medical marijuana is legal. This emerging business model is particularly attractive to states with more mature cannabis laws, like California and Nevada. Alaska became the first U.S. state to allow consumption lounges in 2019 and Nevada is the latest to announce plans for the first state-sanctioned lounges by mid-2022. In all, seven states including the aforementioned, as well as New Jersey, New York, Pennsylvania, and Illinois, are forging ahead with their plans to allow for consumption lounges in 2022. These states will likely serve as a blueprint for other states as their popularity grows.

Risks versus Rewards of Cannabis Consumption Lounges

State regulatory bodies are grappling with how to develop, implement and enforce the rules surrounding social consumption lounges. For example, what will the laws around consumption lounges look like? How will business mitigate the myriad of risks? From an insurance perspective, will there be a need for new products? Should coverages be similar to Bar/Restaurant/Lounge insurance (DRAM Insurance), as both types of businesses face similar risks?

They will also need to carefully address questions and concerns about public health implications. Could public consumption spaces cause people to over-consume? Will there be limits on how much cannabis a person is allowed to consume at a lounge in one visit? What is a “single serving” of cannabis anyway? These are all questions surfacing to the top.

Many see the potential benefits of licensed social consumption lounges as ways to curb the illicit market, regulate public consumption, ensure consumption in a safe space and bolster the economy. A “Designated Consumption Establishment License” is particularly attractive to entrepreneurs looking to enter the cannabis market, but aren’t interested in growing, processing, or operating a traditional dispensary. Furthermore, cannabis consumption lounges are particularly attractive for their potential to attract tourism dollars. The masses of tourists buying cannabis products in states that have legalized recreational marijuana have nowhere to smoke it legally — not on the sidewalk and not in their hotel rooms.

What Lies Ahead?

In order for the cannabis industry to continue to thrive and expand, new retail models must be considered. We believe it is highly likely that social consumption lounges will become increasingly common, especially in major U.S. cities with legal adult-use cannabis programs.

If you’re thinking about opening a cannabis consumption lounge, it’s important to stay on top of your state’s specific laws since they do vary from state to state and are likely to change and evolve. It’s equally important to make sure you have the right insurance policies in place. Many insurance companies have exclusions in their policies that prohibit onsite consumption, meaning your lounge would not be covered if an unexpected event like a theft, fire, data breach, product defect, accident, or any other type of lawsuit occurs. It’s important to examine your current policies and make adjustments, if necessary. It all boils down to the THREE P’s: being “Proactive, Prepared and Protected.”

Eric Rahn, Managing Director of S2S Insurance Specialists, is a highly specialized insurance broker and risk management professional with over 30 years of experience providing C-Suite executives strategies and solutions that protect and safeguard their businesses.

A graduate of Babson College School of Entrepreneurial Studies, Eric has held several executive positions in the maritime and casino/gaming industries, including CEO of the largest privately own casino concessions company operating on cruise ships around the world. Eric transitioned his knowledge of corporate business practices in highly regulated industries into the burgeoning cannabis space, establishing S2S Insurance Specialists in 2017.

Eric has served on the National Cannabis Industry Association’s (NCIA) Risk Management Insurance Committee since 2016. He is also a national speaker on cannabis insurance and author of NCIA’s Risk Management and Insurance’s “Introduction into Cannabis Insurance.”

Video: NCIA Today – Thursday, February 10, 2022

February Hodgepodge: An Update from D.C.

by Michelle Rutter Friberg, NCIA’s Deputy Director of Government Relations

It may only be February, but the NCIA government relations team has been busy at work this year advocating for you and your business! Just over the last month, the SAFE Banking Act passed the House for the sixth time, we held our first mini-virtual lobby days, and Majority Leader Schumer provided an updated timeline for the Cannabis Administration and Opportunity Act (CAOA). Keep reading to learn the latest:

SAFE Banking

Last week, Congressman Perlmutter (D-CO) followed through on his promise to attach SAFE Banking to any viable legislative package when he filed it as an amendment to the America COMPETES Act, which is a large manufacturing bill. Now, the bill is headed to a “conference committee” – a term for when House and Senate leadership, as well as committee chairs and other members of Congress get together to negotiate differences in the two chambers’ bills.

Congressman Perlmutter and the other lead offices of SAFE Banking are currently talking with leadership about the importance of enacting the provision, however, Leader Schumer and Senator Booker have been clear about their opposition to passing SAFE without broader equity provisions. During early February, keep your eyes on the news to see if SAFE Banking makes it into the final, enacted language!

Virtual Lobby Days

Due to NCIA’s Evergreen members’ investment in shaping policy for the cannabis industry, we have been able to take our Government Relations work virtual by hosting our first ever Mini-Lobby Days! As we continue to represent a value-driven, responsible industry, our main goal is to educate congressional offices on all aspects of cannabis policy reform, including social equity, banking, 280E, scientific data, and much more.

During the first week of February, NCIA’s Evergreen Roundtable members participated in more than 30 virtual congressional meetings, including time with Sen. Cory Booker (D-NJ), Sen. Jeff Merkley (D-OR), and Rep. Dave Joyce (R-OH). Members also met with relevant committee staff and communicated the importance of holding hearings and markups on cannabis policy issues, as well as enacting reform while Democrats hold the majority in both chambers.

Sound interesting? Get in touch with Maddy Grant (Madeline@TheCannabisIndustry.org) to learn more about becoming an Evergreen member today!

Latest on CAOA

Back in September, NCIA and other stakeholders submitted responses to the Cannabis Administration and Opportunity Act (CAOA) discussion draft, led by Leader Schumer (D-NY, and Sens. Booker (D-NJ) and Wyden (D-OR). Since then, the Senate’s focus has been primarily on passing President Biden’s Build Back Better Act, which has significantly slowed progress on the CAOA. While the bill hasn’t been formally introduced yet, the sponsoring offices have slowly continued to have conversations with committees of jurisdiction to tee things up behind the scenes.

In a recent press conference in New York, Leader Schumer announced plans to introduce the CAOA in April. Can anyone say 4/20?

This update just represents a small snapshot of all that NCIA’s government relations team has been working on in D.C. – make sure to keep an eye on the blog, find us on NCIA Connect, and follow us on our social media channels to learn the latest!

NCIA Board of Directors Selects 2022 Officers

by Aaron Smith, NCIA’s CEO and Co-founder

On Monday, February 7, NCIA’s Board of Directors conducted its first meeting of the year and gladly welcomed Michael Cooper of Madison Jay Solutions and Peoples’ Ecosystem CEO Christine De La Rosa as newly-seated members of the leadership team.

A longtime member of NCIA, Christine also serves as chair of the association’s Diversity Equity & Inclusion Committee. Michael is Chair Emeritus of NCIA’s State Regulations Committee and current Policy Co-Chair. Both have joined 13 other incumbent board members and will be serving during the 2022-24 board term.

NCIA commends Christine and Michael for their leadership and dedication to building an industry we can all be proud of.

The board also selected its slate of 2022 officers. By unanimous vote, the following directors have been appointed:

Kris Krane, 4Front Ventures – Chair

Chris Jackson, Indica (Sticky) – Vice-Chair

Liz Geisleman, Rocky Mountain Reagents – Treasurer

Michael Cooper, Madison Jay Solutions – Secretary

Khurshid Khoja, Greenbridge Corporate Counsel – Chair Emeritus & Executive Committee Member-At-Large

Along with CEO Aaron Smith, the board officers make up the governing leadership of the largest trade association representing the cannabis industry. NCIA is proud to be a member-led organization that looks out for what’s best for all legal cannabis businesses – large and small.

Join the movement by becoming a member today.

JOIN THE MOVEMENT

Equity Member Spotlight: Legacy Greens, LLC

Tell us a bit about you, your background, and why you launched your company.

My name is Dr. Donise Floyd and I am the founder and managing member of Legacy Greens, a vertically integrated cannabis company. I was born and reared in Detroit, Michigan and I am a product of the public school system. I have a BS and MS from U of Detroit Mercy. I also have a Ph.D. in Leadership. Throughout my career, I have been instrumental in developing teams, building sustainable programs, formulating compliance models, and have been instrumental mentoring and impacting the community. I have been an administrator, educator, professor, mentor, business owner, and advocate for the community.

I experimented with marijuana when I was younger and like many others around me understood the value of the product for medicinal and recreational purposes. When I was younger, I would hear individuals reference marijuana as their medicine. In the late 1970s up to now, people use the plant to treat things like anxiety, depression, stress, and cancer. It was referenced and/or used as a medicine before it was popular. What is now known as the cannabis industry was known as a “side hustle” in my family and in some cases, a full-blown business that thrived and supported families and communities. But it was illegal. I look back now through very educated eyes and think how things could have been different if there were no legal implications. There was a high price to pay if you were caught! Especially if you were Black!

I have witnessed my family, friends, and community pay for it with their lives. Whether it was long-term prison sentences or loss of life; the sacrifice was tremendous and the impact far-reaching and long-lasting. I have seen, felt, witnessed, and lived the fallout of the war on drugs that ultimately decimated my community. We knew the penalty for “hustling” this plant was either incarceration or maybe even death. Today, the very thing that destroyed communities and families has become a multi-billion dollar industry. Legacy Greens was birthed to assist in restoring the community, build generational wealth, and repair some of the harm in family dynamics. Our goal is to vertically integrate this company so that it can lend itself to support, educate, and fund other entrepreneurial ventures that are connected, directly linked or outside of the cannabis space.

What unique value does your company offer to the cannabis industry?

Legacy Greens is a minority female and social equity-owned and operated company. We are committed to connecting the community to resources. Our desire is to build a network and partnerships with other minorities, BIPOC, women, LGBTQ+ and veteran-owned companies both in the cannabis and ancillary space. The goal is to build relationships that would build wealth, opportunity, community, and lasting relationships.

While Legacy Greens is a for-profit cannabis company, our vision and mission are rooted in a philanthropic belief and value system. We are currently raising capital to launch phase one of our plan to open a dispensary leading to a fully vertically integrated company. We have submitted applications for several licenses beginning with an event planner. Others include dispensary, grow, and processing. Our business will use its profits to restore the community and part of our purpose is to build bridges that will lead to the creation of pathways to business ownership.

What is your goal for the greater good of cannabis?

Part of our goal is to “turn the black market green” by building bridges to access (one entrepreneur at a time). That is to say that we will support businesses with undocumented years of plant-touching experience with no resources and maybe even a lack of understanding with running a formal business. Legacy Greens is committed to R.I.D.E. for its community – Restore, Invest, Develop, and Educate.

What kind of challenges do you face in the industry and what solutions would you like to see?

The major barrier, at this time, is access to capital. We have been bootstrapping this initiative and have been faced with many challenges that we have and are still overcoming. Access to capital is a huge barrier but being a minority women business owner is another. It would be great to see more access to capital for the BIPOC community. It is so disheartening that in some cases the access is limited because of the color of your skin. We shall overcome all barriers and become a successful business that builds wealth not only for itself but for the community.

Why did you join NCIA? What’s the best or most important part about being a member through the Social Equity Scholarship Program?

NCIA has been a great networking tool. Their commitment to support social equity businesses is extremely valuable. The access to information has been very beneficial. The relationships and exposure have been immeasurable and the connections have been extremely rewarding.

It is my goal to continue to build relationships and maybe even partnerships. In some cases, it has even been a support system. Having the opportunity to discuss and roundtable ideas or challenges has proven to be an invaluable resource. NCIA has been an extremely valuable resource for Legacy Greens and its efforts.

Video: NCIA Today – Thursday, January 27, 2022

NCIA’s 7th Annual Cannabis Business Summit & Expo Highlights

New Experiences, Fresh Perspectives, and Best-in-Class Content

We at NCIA would like to take a moment to thank our members, partners, and sponsors, as well as so many new faces in the cannabis industry, who attended and supported our 7th Annual Cannabis Business Summit & Expo, December 15-17, 2021, in San Francisco. As we reflect on this successful three-day event, several key elements stand out as high points to remember.

“In a word: amazing. I am truly amazed at the show of support from cannabis leaders from across the country,” says Aaron Smith, Co-Founder and CEO of NCIA. “Attendance exceeded expectations, and never have we hosted such an esteemed group of speakers and exhibitors on the leading edge of this booming sector.”

In keeping with our reputation for best-in-class content, we presented a comprehensive educational agenda, featuring two high-profile keynotes. On Thursday, December 16, the General Session opened with NCIA’s update from Washington, D.C. Thereafter, San Francisco Mayor London Breed delivered an inspiring welcome address.

“I’d like to thank NCIA for welcoming me to the stage and for hosting their annual Summit here in San Francisco,” said Mayor Breed. “Their events help advance our industry in a myriad of ways across social equity, policy, and other important issues, while helping connect industry leaders from across the globe.”

Thursday’s keynote showcased Troy Datcher, CEO of The Parent Company in a candid fireside chat with MARY Magazine founder Adrian Farquharson, covering his work to make an impact in the cannabis industry. Our second keynote on Friday, December 17, gathered professional athletes Calvin Johnson, Jr., Rachael Rapinoe, Anna Symonds, and Marvin Washington, for an engaging conversation surrounding the headline-making intersection of cannabis and sports.

“High school athletes are 50 percent more likely to abuse and misuse opioids,” said Rachael Rapinoe, former professional soccer player and Co-Founder and Chief Executive Officer of Mendi. “We need to discuss this massive issue and look to cannabis and hemp as alternatives. My hope [is to] spark those conversations across the industry and help these high school or collegiate athletes, who are just so susceptible to opioid abuse, to look to this space for solutions.”

Last, but certainly not least, we must also emphasize the quality content featuring 100+ NCIA members and supporters who facilitated educational breakouts covering an array of issues facing the cannabis industry, the anticipated CannaVest West Investment Forum, as well as the International Cannabis Bar Association (INCBA) Program, which completed our exclusive content line-up.

This event also marked the debut of BLOOM: A Brands Experience, showcasing an exciting new pavilion in which attendees were able to see, touch and smell cannabis products for the very first time at our signature event. This, in addition to hundreds of exhibitors from the entire cannabis ecosystem, allowed attendees to explore the latest technology, products, and services from seed to sale.

In closing, NCIA is honored to have hosted an event that encouraged exploration and provided valuable education while facilitating the growth of cannabis businesses across the country in the coming year. Please save the date for our 8th Annual Cannabis Business Summit & Expo, July 20-22, 2022, at the Moscone Center in San Francisco. We’ll see you again soon!

2022 and Beyond: Lobbying Congress with NCIA Evergreen Members

by Madeline Grant, NCIA’s Government Relations Manager

Founded in 2010, the National Cannabis Industry Association is the oldest and largest trade association representing legal cannabis businesses. Our membership consists of hundreds of forward-thinking businesses and tens-of-thousands of cannabis professionals from coast to coast. That being said, our work and effectiveness in cannabis policy reform continues to be one of the most important duties at NCIA. During the pandemic, NCIA’s government relations team continued to work to support congressional offices through education and conversation. As we continue to be effective on Capitol Hill, our lobbyists work closely with NCIA’s Evergreen roundtable to effectively shape policy reform.

Due to Evergreen members’ investment in shaping policy for the cannabis industry, we are able to take our Government Relations work to the next level. This month, we will be hosting our first ever Virtual Mini-Lobby Days, taking place the week of January 31. As we continue to represent a value-driven, responsible industry, our main goal is to educate congressional offices on all aspects of cannabis policy reform; social equity, banking, 280E, scientific data, and much more. I want to thank our Evergreen members for supporting our policy agenda.

Let’s take a look at some policy goals in 2022:

You’ll remember that during the 116th Congress, the SAFE Banking Act became the first cannabis-related bill to be passed by a chamber of Congress. It also became the first piece of cannabis legislation to pass the 117th Congress in April of 2021 by a vote of 321-101. Since last spring, the bill has languished in the Senate due to disagreement over enacting comprehensive versus incremental reform.

This year, expect pressure on the passage of SAFE to increase. While efforts to enact comprehensive reform continues, the votes are simply not there as of now. If you’re interested in learning more about this conundrum, take a look at this piece that the Brookings Institute recently posted.

NCIA is continuing to build support for the SAFE Banking Act in the Senate, but some big news was announced recently that will certainly impact the legislation in the future: longtime champion and lead sponsor, Rep. Ed Perlmutter (D-CO), just announced that he will not be running for re-election next session. Rep. Perlmutter spoke to Colorado Public Radio this month about his decision not to run for reelection this November and his disappointment that, while the House has approved the Secure and Fair Enforcement (SAFE) Banking Act five times now in some form, the Senate has failed to advance it under both Republican and democratic leadership. The congressman says that he’s going to work to pass his marijuana banking bill before his time on Capitol Hill comes to an end.

There are numerous bills that have received much attention in terms of descheduling cannabis – among them the MORE Act (H.R. 3617), the States Reform Act (H.R. 5977), and the discussion draft (not formally introduced) of the Cannabis Administration and Opportunity Act (CAOA). Please read my colleague’s blog HERE for more detail.

As we continue to discuss comprehensive legislation with Capitol Hill offices, our main focus is to continue to be a resource when these offices have questions or concerns. It is imperative that NCIA remains in conversations as language is analyzed and discussed. As we work with NCIA members and our Evergreen roundtable, we continue to relay the burden of federal prohibition and how it impacts our businesses and communities.

How can you do more as an NCIA member?

There are ways for you to be more active as an NCIA member. For example, you can consider applying to be on one of NCIA’s committees this summer. As a committee member you’ll work alongside other cannabis professionals as thought leaders to develop industry standards. Some of our committees include: Education committee, Retail committee, Hemp committee, State Regulations committee, Diversity, Equity & Inclusion committee, and many more.

If you are a larger company looking to make a meaningful investment in NCIA’s government affairs work, there is the opportunity to join our Evergreen Roundtable. For more information or a consultation feel free to email Madeline@TheCannabisIndustry.org. Stay tuned for policy updates from our Government Relations team.

Equity Member Spotlight: Raina Jackson – Purple Raina Infused Self Care

Tell us a bit about you, your background, and why you launched your company.

I am an Oakland-based hemp CBD & cannabis brand strategist, product developer/educator, and cannabis industry advocate who recently became a member of the NCIA DEI Committee.

I am a Black “urban hippie” born and raised in San Francisco’s Haight Ashbury neighborhood who earned a B.A. with honors from Stanford University in cultural anthropology and sociolinguistics as a first-generation graduate and an MBA from the NYU Stern School of Business.

A product junkie with over 15 years of experience in sales/marketing management, personal care product development, and education. I have worked in the cannabis industry in sales management, distribution, and field marketing since 2015 and have been a Verified San Francisco Cannabis Equity Applicant seeking a cannabis business permit and license since 2018.

PURPLE RAINA Self Care is the culmination of my personal and professional passion for self-care products, the color Purple, and the artist Prince. Prior to entering the cannabis industry, I worked for top NYC beauty/personal care companies Maybelline and L’Oréal Professional, trained at the Vidal Sassoon school in London, and taught cosmetology at The Aveda Institute in SOHO NYC.

Upon returning to the San Francisco Bay Area in 2013, I became enamored with cannabis dispensaries and the local cannabis culture. While waiting for my permit, I decided to offer a hemp CBD version of PURPLE RAINA to show proof of concept, gain market feedback, and to promote the benefits of hemp CBD to a broader audience. The THC:CBD version will be launched in mid 2022.

What unique value does your company offer to the cannabis industry?

PURPLE RAINA Self Care offers topical infusions that soothe sore muscles and joints, nourish the skin from head to toe, and pamper the senses with aromatherapy. PURPLE RAINA Self Care promotes “mindful self-care and grooming” and seeks to appeal to our collective humanity focusing on our common need for daily grooming and self-care on a physical, mental, and spiritual level.

PURPLE RAINA offers a fresh approach to the category through multi-purpose infused topicals that will serve a range of self-care and grooming needs from head to toe, regardless of gender. Most topical products addressing pain relief overlook daily skin/hair care, personal grooming, and aromatherapy. Many have unpleasant odors and can be irritating to sensitive skin. I created PURPLE RAINA for people like me seeking to moisturize dry/sensitive skin and to soothe sore muscles with aromatherapeutic plant-powered products free of allergens and artificial ingredients.

PURPLE RAINA will eventually employ people from the community. I plan to recruit a “Purple Posse” of brand ambassadors who will conduct impactful in-store product demonstrations for consumers and retail staff. The “Purple Posse” will earn income and gain valuable sales presentation skills training.

What are some lessons learned from the beauty industry that you brought into your cannabis business?

My career has more recently reached the intersection of beauty/personal care and cannabis products. I recently learned that some of the largest cosmetic/personal care companies in the world are now incubating emerging brands instead of regarding them as competition to be squashed or absorbed. Some are being groomed for future acquisition but not always anymore. It’s a more mutually beneficial business relationship.

These beauty behemoths realize the importance of an ecosystem of high-end products, mid-priced and value brands, mature institutional brands, and young indie/niche brands readily available online and in stores. It best serves the customer when they have multiple quality choices at a range of price points. These companies are also assuming their corporate responsibility to the industry and society. They are abstaining from unfair competitive tactics aimed at eliminating competition from emerging brands.

What is your goal for the greater good of cannabis?

The cannabis plant, as a metaphysical healing force, deserves to be represented by an equitable accountable industry under a new breed of conscious compassionate capitalism valuing Profit & People / People & Profit like Yin & Yang.

During the 2021 Meadowlands conference/retreat at Camp Navarro, CA, surrounded by majestic redwood trees, I imagined the notion of a relationship between big trees and little trees as an analogy for cultivating an equitable cannabis ecosystem where little trees can still thrive to grow among the big trees, some eventually becoming big trees themselves. Imagine if big trees could share the nutrients in their roots with neighboring little trees, as a metaphor for how corporate financial, technical, and educational resources could be redirected to help benefit emerging equity and legacy businesses. This doesn’t exist in nature but imagine the social and financial impact it would have on so many who have been systematically excluded and discriminated against, as well as on those who contribute these resources.

What kind of challenges do you face in the industry and what solutions would you like to see?

Challenges: I face financial challenges like so many other cannabis entrepreneurs. Yet this is compounded as a Black woman, a member of an underestimated undervalued group that is underrepresented as cannabis business executives and owners. We receive the lowest amount of investment funds across industries due to racism and sexism, though we are the fastest-growing group of business owners in the U.S. and tend to be successfully bootstrapped and financially savvy.

Additionally, there is a big disconnect in current equity programs between the criteria to qualify and the financial resources and business acumen necessary to succeed if you don’t have access to investors and sound cannabis business and legal advisors. Late in the game, I was even told that I didn’t need a cannabis license to make my products and can just hire a manufacturer to produce them under their license. This is a viable option initially to go to market but not long-term. I would have wasted significant time and money and missed the whole point if I abandoned the pursuit of my own license. Also, as a brand of customized topical formulations manufactured by contract manufacturers, my rare business model tends to be overlooked by local and state cannabis regulations. For example, it took a few years and forfeited application fees for the type 13 transport only/self-distribution license I now seek to be introduced, representing the only feasible path to licensure and the only way I could go to market, other than the type-S shared license which doesn’t work for me.

Solutions: As part of a corporate responsibility mandate, successful profitable cannabis businesses along the supply chain, MSOs, and future alcohol and tobacco corporations entering the industry should make contributions into a Cannabis Equity/Legacy Fund collected by state licensing agencies and administered by an industry non-profit like the NCIA or a group of B-corps operating in the highest integrity. These big trees would contribute financial resources and access to key technical services as part of their platinum “industry membership fees,” a standard cost of doing business. In the same way their license fees are proportionate to projected revenue, their contributions into the fund would be proportionate to recent and projected revenue.

Our allies are instrumental in helping those who are resistant or just don’t know what to do to recognize their responsibility to use their privilege for the greater good, ultimately benefiting all parties’ bottom lines and corporate morale. There’s no need for guilt or blame, just empathy, goodwill, good works, and collaboration to help undo historic wrongs over time.

I want to see U.S. cannabis legalization soon with equity and anti-monopoly policies already in place. The cannabis industry should under no circumstances become fully dominated by oligarchies/monopolies like the early telephone and utility companies that had to be split up or even the current social media and tech giants under scrutiny. This policy should demonstrate recognition of the value DEI and BIPOC partners bring to the cannabis industry along the entire supply chain. Government solutions would include SBA grants and forgivable PPP-like loans like any other industry receives.

Why did you join NCIA? What’s the best or most important part about being a member through the Social Equity Scholarship Program?

I always wanted to join the NCIA since I attended an annual conference years ago but couldn’t afford it. The best part of being a member through the Social Equity Scholarship Program is the weekly Zoom call held by Mike Lomuto for equity cannabis entrepreneurs and allies nationwide. We check in to discuss our triumphs and challenges and share valuable business insights and ideas for building a more equitable cannabis industry. These calls inspired me to apply for the DEIC and to intensify my cannabis equity advocacy and thought leadership.

Video: NCIA Today – January 13, 2022

Keeping the Spotlight on Cannabis Banking Reform

Let’s take a look at where Congress currently stands with the SAFE Banking Act.

Committee Blog: Social Equity Perspectives on Interstate Commerce – Part 3

Qualifying Social Equity Operators – Federal Technical Assistance Program

To carry out these provisions in the policy, we recommend that amendments to any federal act include:

Phased Approach:

Follow Through

Conclusion

Video: NCIA Today – Thursday, May 5, 2022

Equity Member Spotlight: Puff Couture LLC – LaVonne Turner

Tell us a bit about you, your background, and why you launched your company.

What unique value does your company offer to the cannabis industry?

What is your goal for the greater good of cannabis?

What challenges do you face in the industry, and what solutions would you like to see?

Why did you join NCIA? What’s the best or most important part about being a member of the Social Equity Scholarship Program?

Video: NCIA Today – Thursday, April 7, 2022

NCIA Partners with Green Enterprise’s HBCU College to Career Initiative

Creating a Pipeline to Generational Wealth

The Unique Opportunity for NCIA Members

The HBCU College to Career Initiative Tour Dates

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

Get Involved!

(Another) Historic Week In Congress for Cannabis Reform

The MORE Act

Marijuana Research Act

Equity Member Spotlight: Modesto Cannabis Collective

Tell us a bit about you, your background, and why you launched your company.

What unique value does your company offer to the cannabis industry?

What is your goal for the greater good of cannabis?

What kind of challenges do you face in the industry and what solutions would you like to see?

Why did you join NCIA? What’s the best or most important part about being a member through the Social Equity Scholarship Program?

Video: NCIA Today – Thursday, March 24, 2022

Continuing Conversations on Capitol Hill

Committee Blog: Social Equity Perspectives on Interstate Commerce – Part 1

The Problems with Current Social Equity Programs

Read more in Part 2 and Part 3 of this blog series.

Equity Member Spotlight: Euphorium Oakland

Tell us a bit about you, your background, and why you launched your company.

What unique value does your company offer to the cannabis industry?

What is your goal for the greater good of cannabis?

What kind of challenges do you face in the industry and what solutions would you like to see?

Why did you join NCIA? What’s the best or most important part about being a member through the Social Equity Scholarship Program?

Omnibus Leaves Industry Hanging

PROTECTIONS

WASHINGTON, D.C.

EXPUNGEMENTS

VAPING

Video: NCIA Evergreen Members Lobby Congress Virtually

To learn more about NCIA’s premier policy-focused Evergreen Membership, please reach out to our team to schedule a call.

Video: NCIA TODAY – Thursday, March 10, 2022

Member Blog: Hemp Cultivators and Processors Get a Head Start in New York Adult-Use Cannabis Industry

Video: Voices of NCIA’s DEI Scholarship Recipients

Equity Member Spotlight: YS Cannabis Delivery Services

Tell us a bit about you, your background, and why you launched your company.

What unique value does your company offer to the cannabis industry?

What is your goal for the greater good of cannabis?

What kind of challenges does the industry face, and what solutions would you like to see?

Why did you join NCIA? What’s the best or most important part about being a member through the Social Equity Scholarship Program?

Member Blog: Diversity and Inclusion Emerge as Major Themes in Cannabis

Diversity Where it Matters

Building a Backbone Through Programs and Government Uniformity

Making a Change

Equity Member Spotlight: Toni Brands with Toni Scott

Tell us a bit about you, your background, and why you launched your company.

What unique value does your company offer to the cannabis industry?

What is your goal for the greater good of cannabis?

What challenges do you face in the industry, and what solutions would you like to see?

Why did you join NCIA? What’s the best or most important part about being a member of the Social Equity Scholarship Program?

Member Blog: Will 2022 Be the Year for Cannabis Consumption Lounges?

Key Questions & Considerations for Those Looking to Ride the Next Big Wave

The Opportunity

Risks versus Rewards of Cannabis Consumption Lounges

What Lies Ahead?

Video: NCIA Today – Thursday, February 10, 2022

February Hodgepodge: An Update from D.C.

SAFE Banking

Virtual Lobby Days

Latest on CAOA

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