The Equity Workshop Tour: Impactful Conversations with Regulators
by Mike Lomuto, NCIA’s DEI Manager
Part 1 of a Blog Series Recapping the Equity Workshop Tour – Spring 2023
I believe that the cannabis industry needs intimate and dynamic events, particularly if we are to build in an equitable and diverse fashion, and that’s why I embarked on the Equity Workshop Tour, navigating countless obstacles along the way.
After completing the four workshops that comprised the Tour, that belief has been validated, with several additional takeaways.
As part of each workshop, we conducted panel discussions with representatives of state and city regulatory agencies and advocacy organizations.
These conversations were especially illuminating for me, as I got to witness firsthand the ways in which regulators and advocates have been working together in each of these states, with the same mission of equity front and center.
NEW JERSEY
In New Jersey, the Cannabis Regulatory Commission (CRC) recognizes the need for input from stakeholders, and our intimate panel discussion, with a high level of audience participation, offered exactly that.
Hearing the “origin stories” of CRC Vice Chair Samuel Delgado and CRC Commissioner Charles Barker is a large part of why I believe we have a chance at an equitable industry. Because at the end of the day, we have solid allies within the halls of government, who share our mission.
I was very encouraged to learn about a state that appears to be outpacing other states in the drive to stand up an equitable industry. There does, however, appear to be a lot of work that needs to be done on the municipal level. This is where advocacy organizations, like NCIA, and stakeholders must work together to educate local regulators in order for expeditious and equitable permitting processes to unfold. I believe that NCIA’s committees can provide support in this area, as we have previously, by providing written or verbal testimony on specific matters that municipalities are still unaware of.
It was also illuminating to understand the role that service-disabled veterans play in the industry, as pointed out by Osbert Orduna (of NHCC and SDVICA). Nichelle Santos (M4MM) also contributed valuable insights to this panel discussion.
ILLINOIS
Illinois is a state that has drawn the ire of many. While the legislation was the first to include equitable provisions, the implementation has been challenging, and many people have lost a lot.
That said, as opposed to the nascent and scattered approach of advocacy I witnessed here a few years back, it’s very encouraging to see advocacy organizations working together on the same page, developing a collaborative working relationship with one another and the regulators. A big shoutout to Cannabis Equity Illinois Coalition (CEIC) for their role in this. (check out this recent Catalyst Conversation to learn more about their work)
It seems that a consolidation of Cannabis oversight into a singular agency with its own power to regulate the industry is needed. There are currently 17 agencies with a role in Illinois’ industry, and the state’s Cannabis Regulatory Oversight Officer serves as a limited version of a centralized agency, without the power to enact the implementations everyone seems to know are needed.
I encourage you to tap in with CEIC, SEEN, and ULCIA to learn more about how you can help with the priorities they’ve identified are necessary to create an equitable industry in Illinois.
NEW YORK
In New York, there is a need for more transparency, which it seems the Office of Cannabis Management recognizes and is headed in that direction. I’ve said this before, and I’ll say it here. OCM has a difficult job, balancing the directives from those above it, with the needs of the stakeholders. As Tabatha Robinson, OCM’s Deputy Director for Economic Development Policy and Research, pointed out during the panel, OCM is made up of several dedicated people who go above and beyond because they believe in creating an equitable industry. As advocates, our challenge lies in balancing the above understanding while also ensuring that the government is held accountable for its promises
Shanduke McPhatter, a CAURD licensee who represented the NY CAURD Coalition on the panel, said it best when he advocated for greater transparency in the process. He reminded us that patience is not the issue for those who have served time, as they’ve learned patience the hard way already. But while being patient, there is a need for greater transparency from the state. A large part of this has to do with the major lack of transparency from the Dormitory Authority of the State of NY (DASNY), which also impacts OCM and their ability to operate properly. It seems like it’s time for Ruben McDaniels and DASNY to stop playing games, but I’m not stating anything that everyone in New York doesn’t already know.
Lastly, I appreciated Dr Adrian Adams (M4MM) and Scheril Murray Powell (JUSTUS) pointing out the importance of the industry to work together to find creative solutions. These types of discussions are a great starting point, but it’s how we collaborate on action items moving forward that will define our path forward.
MICHIGAN
In Detroit, our panel included NCIA Board Member Rebecca Colett, who has founded the Detroit Cannabis Project (DCP) as a mentorship group to support cannapreneurs on their journey. Thus far, that journey has mostly consisted of staying relevant and advocating properly while the myriad of municipal challenges have unfolded.
What stood out to me was the way in which Kim James and the City of Detroit’s Homegrown Cannabis Office have partnered with DCP, recognizing the need to support mentorship from the municipal level. As Detroit comes online, and as capital markets open back up to fund these new cannapreneurs, the participants in Detroit’s cannabis program will have a leg up on where they would’ve been without this type of holistic support.
Another interesting topic of conversation was led by Scheril Murray Powell, who provided an update on the work to support Legacy operators being conducted by ASTM and the JUSTUS Foundation. This includes advocating for a universal definition of “Legacy operator”, of which NCIA’s DEI Program is very supportive:
“An individual who: 1) Commercially for the majority of their income, or sacramentally, or ceremonially distributed cannabis; 2) Outside of the Legal Framework; 3) During the period of Prohibition; 4) For a minimum of 5 years before legalization.”
As part of the beginning of what will hopefully be a robust dialogue on this topic, NCIA Cultivation Committee member Joseph Smith pointed out the potential challenges for adopting such a standard in the state of Michigan, which had a caregiver program for a decade or so prior to legalization.
I can’t wait to get back out to Michigan to see this constantly-evolving program.
WHAT IT ALL MEANS
My biggest takeaway is that no matter how many of these types of conversations we have, we need to continue having them and to continue pushing the ball forward. Cannabis is going to take several years to stand up properly, and equitably, so dialogue between advocates, business owners, and regulators is invaluable at this stage in the game.
And the more cannabis entrepreneurs realize the importance of advocacy at this early stage, the more an equitable industry is possible.
My hope is that these panels, in the setting of the workshops, provide a forum for the right type of conversations, as well as inspiration for business owners as to how to advocate for themselves and others in a successful manner.
It Takes A Village: NCIA’s Equity Workshop Tour is Developing an Ecosystem
by Mike Lomuto, NCIA’s DEI Manager
The depth and cohesiveness of our networks are what will carry us through to the other side of cannabis prohibition, positioned for ultimate success.
When I started my transition from the legacy space into regulated cannabis about a decade ago, I did so in the silo of the Bay Area. After failing to make that transition successfully, I took a step back and recognized that my network wasn’t what it needed to be in order for me to build the type of long-lasting business I dreamt of.
In order to turn the dream of generational wealth into an actionable plan, I needed to expand my network. That’s when I started getting involved with NCIA. I saw access to a national network as a priceless resource on this journey. So I set out to not only access the network myself but I was also provided the opportunity to build out the DEI Program so that we could create a structure that would allow everyone to plug in.
Like any other network, not everyone is for everyone. But my legacy days taught me all I needed to navigate the network and find the people who were real, and who actually care about the industry’s potential to create a new paradigm, distinct from the normal corporate, colonial systems we see rampant in other industries.
But creating a new paradigm isn’t easy. It takes a village. And then some.
And that’s why I believe the Equity Workshop Tour is so important. It’s an opportunity for us to continue to grow our networks, and to do so with intention in a structured and curated environment, designed to facilitate and accelerate network development, so that real can find real, and folks can not only get the info and insights they need to succeed but make those valuable connections.
The Spring 2023 Tour is four stops – Chicago, Detroit, Jersey City, and Brooklyn. But this is just the beginning. We’re planning something more expansive for our Fall and Winter tours. And we also have some virtual events in the works in between, so that folks who attend the workshops can continue to build together, as well as with fellow attendees from the other workshops across the country.
Partner Organizations Who Are With Us for the Long Haul
You’ll notice that we have several organizational partners signed on for the tour. This isn’t just some slapped-together list. These partners are all organizations that we’ve been building with for some time now and intend to do so for a long time coming.
In Chicago, some of these conversations go back several years to the rollout of adult use. We hosted a Catalyst Conversation in February with Cannabis Equity Illinois Coalition on the power of Community Benefit Agreements. We’ve intersected with SEEN countless times. The United Latino Cannabis Industry Alliance is a new organization, but one whose founders we’ve been building relationships with for years.
And in Detroit, we have to show some love to the Detroit Cannabis Project, as they were also an integral part of our very first Equity Workshop at our Cannabis Business Summit in Detroit in September 2021.
NCIA proudly represents Main Street Cannabis, and this Spring Tour consists of cannabusinesses that reflect that.
Several of our sponsors are represented in NCIA’s committee structure. Meaning they have been volunteering their time, experience, and insights to the movement in more ways than one already. So much of my success in building the DEI Program comes from my regularly leaning into support from our committees.
Grow America Builders and Etain both came on as gold sponsors, and both have been contributing to our committee work for some time now.
I’m also proud to say that Dao Mastery (the coaching & consulting company I co-founded) is the official platinum sponsor for the tour.
All of these companies understand the importance of DEI in cannabis as an integral part of what we’re building toward in this industry in the first place. It’s not an afterthought, but rather something that informs the decisions we make.
It All Culminates In D.C.
This Spring Equity Workshop Tour has also been designed to provide me and our DEI Delegation with lots of insight and fuel as we head to Washington, D.C. for NCIA’s 11th Annual Cannabis Industry Lobby Days, May 16-18. We’ll be bringing with us the stories and the collective power of everyone we workshop with over the coming days. In fact, two of our DEI Delegates, Osbert Orduna and Adrian Adams, have been an integral part of planning this round of the Equity Workshop Tour. Not to mention the fact that two of our other DEI Delegates, Raina Jackson and Anthony Jenkins, were a part of planning the original round of workshops back in 2021.
I hope to see folks while I’m out here on the road this month. This is just the next step in the building of our ecosystem, and it’s an important one.
Anyone who qualifies for Social Equity is eligible to attend these FREE workshops. And if you don’t qualify for Social Equity, but you believe in what it means and stands for, we’d like to connect with you too, so don’t be shy.
Committee Insights | 9.28.22 | Cannabis Ballot Initiatives in the November 2022 Election
In this edition of our NCIA Committee Insights series originally aired on Wednesday, September 28, 2022 members of NCIA’s State Regulations Committee convened a panel of government affairs, business development and licensing experts for an in-depth discussion focusing on cannabis ballot initiatives up for a vote this coming November.
They provided a detailed overview on the status of each campaign so that you’ll learn how best to position yourself for success and what you can do to help push these efforts across the finish line. If you’re considering business Arkansas, Maryland, Missouri either of the Dakotas then this session is specifically geared for you.
At the conclusion of the discussion they hosted a moderated Q&A session to provide NCIA members an opportunity to interact with leading minds from the cannabis regulatory and licensing space, join today to contribute to future conversations!
Learning Objectives:
• Provide practical information to NCIA members about the cannabis ballot initiatives and potential new business opportunities.
There has been a steady movement for the decriminalization of cannabis worldwide. Many organizations call for their governments to allow recreational and medical cannabis, and it’s hard to deny how valuable the cash crop can be for the local economy. Learn how some cannabis brands are contributing to decriminalizing cannabis and making an impact.
As it stands, 19 U.S. states have fully legalized cannabis, and another 19 have medical marijuana programs. While this is fantastic progress, it’s still leaving many people convicted of drug crimes, medical patients, and minorities behind. While some places go the extra mile, there are still many places where it’s a punishable crime with the smallest amount of cannabis. Cannabis laws continue to evolve to protect users, such as the new California law that protects employees from smoking outside work hours.
A bill to decriminalize marijuana passed in the U.S. House in April, but there’s not a lot of hope that Congress will take it up. However, the fact that it was proposed shows that recreational and medical cannabis is becoming closer to the mainstream.
Global Cannabis Decriminalization
Canada, Mexico, South Africa, Thailand, and Malta have legalized adult-use cannabis. The list is relatively short and shows that there’s still progress worldwide.
It’s become clear that many think it doesn’t make sense for people to go to prison for cannabis possession. Programs have been set up in most states and some countries to expunge cannabis possession records and free people who are locked up unjustly.
Here’s a quick introduction to some of these programs and how states, businesses, and individuals push cannabis decriminalization and legalization forward.
States Create Social Equity Programs
A common critique of the cannabis industry is that it’s dominated by white people who were never negatively impacted by anti-marijuana laws. Social equity programs in many states are working hard to level the playing field.
While each state has different qualifications, eligible people must live in an area strongly affected by high arrest and imprisonment rates for cannabis activity. Applicants might also receive extra assistance if they were arrested or convicted of marijuana crimes before legalization.
Some businesses also offer reduced product prices, grants, and loans for cannabis enterprises founded using social equity programs. This makes it easier for minorities to get the funding they need to start the industry.
Programs To Help Minorities with Cannabis Jobs
Not everyone who wants to get involved in the cannabis field is interested in running their own business. Some organizations are also making it easier for people of color to find jobs in the field.
The Minority Cannabis Academy is a New Jersey program that helps young Black Indigenous people of color find their vocation in the cannabis industry. It trains them to work as budtenders in existing dispensaries, giving them a leg up for employment.
In Illinois, cannabis companies can expedite their application for a license if the majority of their staff has been convicted of a cannabis-related offense in the past. This incentivizes businesses to hire minorities and people who need help from these programs.
More programs like these should be developed nationwide if we want a positive representation of BIPOC in the cannabis industry.
Grants Given to Provide Legal Assistance for Expunging Nonviolent Cannabis Crimes
Having a marijuana conviction on your record can have lasting consequences. Drug convictions come up in background checks, and since they carry a significant stigma, people can lose out on employment opportunities when a company judges them harshly for their past.
A cannabis conviction can also make it difficult to rent an apartment or buy a home. Plus, people with drug convictions have been denied student loans and other loans from financial institutions.
When Illinois legalized cannabis in 2019, it was important to lawmakers that people who were convicted for marijuana crimes previously were able to clear their records.
An excellent organization focused on eliminating people’s cannabis records called the Illinois Equal Justice Foundation is taking a step forward. They will award over $1.4 million in grants spread throughout 18 organizations in the state to help rid people of their cannabis records. The funding will assist legal aid groups, so they can represent people in court and are committed to educating people about their expungement options.
Thailand has pushed its efforts even further. When the country delisted cannabis as a narcotic in June, they also released 3,071 inmates who had been convicted of cannabis-related crimes.
Canada has issued pardons for people with previous marijuana convictions for several years. The process can be slow, but the government feels strongly that these people should be released, and their records wiped clean.
These models show that it’s possible to legalize marijuana while still caring for people whose criminalization has been negatively impacted. Experts are hopeful that President Biden will free individuals in jail for marijuana possession, but the future in the United States remains unclear.
How Brands Can Help Impact Positive Change In The Right Direction
King Palm is a cannabis smoking accessory brand that has created a Last Prisoner Project rolling tray to help spread awareness of that non-profit organization.
This cannabis smoking accessory brand is donating to the Last Prisoner Project. This nonprofit organization is committed to freeing people convicted of marijuana-related crimes.
The organization works hard to advocate for bills that would free people from prison for marijuana offenses, and once people are freed, they help them integrate back into their communities.
Expungement Assistance
Many states are setting up expungement assistance programs that anyone can access. The process can take time and be confusing, but many people find it extremely worthwhile.
In 2021, Michigan passed the Clean Slate Act, which expanded the types of crimes that can be expunged. Some expungements will even be automatic under the law. The state says hundreds of thousands to millions of people are now eligible for their criminal records to be wiped clean.
Another strong member of the National Cannabis Industry Association is Cannabis Equity Illinois. They help community members expunge or seal their criminal records for cannabis and also advocate for automatic expungement. They also provide Know Your Rights seminars, so no one is criminalized for cannabis use.
Looking for help expunging your legal record with cannabis? Many areas have expungement events, and you can find exactly what you need to do on your state’s website.
Support for cannabis decriminalization is growing, but there’s still a long way to go. Luckily, many governments, businesses, and nonprofit organizations are doing their part to make cannabis mainstream and help minorities make their way up through the budding industry.
Mack Bush (they/them) is a freelance writer who is passionate about sharing the joys of cannabis with the world. They manage their fibromyalgia with medical marijuana, and it’s opened up new doors and improved their quality of life. They live in Grand Rapids, Michigan with their cats, Rigatoni and Jasper. Find out more about their work at mackbush.com.
King Palm is one of the leading cannabis companies in the world for joint wraps, pre-rolled cones, and rolling papers. Their specialty palm wraps are made from Cordia leaves and allow you to get in touch with nature while you smoke. They also create quality smoking accessories, including electronic devices like concentrate vapes and nectar collectors, as well as lighters, rolling trays, grinders, and ashtrays. Find out more about their products at kingpalm.com!
Member Blog: How to Prepare a Winning Dispensary License Application
by Gary Cohen, Cova Software
The cannabis industry has come a long way in the U.S. Although we still await federal legalization, many new states have recently jumped on the bandwagon, and legacy states are awarding more social equity licenses. While New Jersey and Mississippi will be opening their first dispensaries by the end of 2022, New York has started accepting applications for CAURD licenses from justice-involved individuals. But scoring high points on your dispensary license application can be challenging, especially with all the stringent requirements. Here are some quick tips to help you stand out and prepare a winning dispensary license application.
Follow your State Cannabis Authority’s Guidelines
Every state in the US has different guidelines and regulations for a cannabis dispensary license. Do a thorough review of all the information available on your state cannabis authority’s website, and keep a look out for when they will start accepting applications. Most states accept only electronic applications, and you will likely have to create an account online on a designated website and link your company’s official information. For an application to be deemed complete, a response to each criterion specified must be included, along with the required documents.
Ensure You Qualify and Apply for the Right Category
To be eligible to submit a cannabis dispensary license application, you must reside in the state where you are applying or must be registered to do business in that state. Many states are awarding conditional cannabis business licenses to social equity applicants first or prioritizing applicants impacted by the war on drugs to build an equitable cannabis industry. If you qualify for any of these categories, ensure that you apply for the right one to expedite the processing of your dispensary license application.
Connect with the Community Where you Plan to Operate
Some states require your dispensary to be located in the municipality you live in, and you will be awarded a license only for a particular zone. Community reach and impact are also criteria laid down by some cannabis authorities, and you must establish connections with not just local and state officials but also other people who can help you understand the bigger picture better. For example, New Jersey and New York want you to explain the positive community impact your dispensary business will have. If you don’t connect with the community, you won’t be able to align your vision with their needs in your dispensary license application.
Fortify Application with a Business Operations & Security Plan
After familiarizing yourself with the license requirements and structure, you must dive into how you can prepare the best possible application to score higher points on every measure. For example, to obtain a conditional dispensary license in New Jersey, 40 out of 100 points are for your dispensary business plan, and another 50 points are for a regulatory compliance plan. One of the most crucial aspects of this is a dispensary operations plan that you must include in your application. This plan helps authorities understand how your dispensary business will comply with all cannabis laws and regulations and ensure safe access to cannabis for your customers.
Compliance is the Name of the Game
The detailed plans included in your cannabis dispensary license application must also mention the technology provider you intend to partner with, and choosing a compliant cannabis retail platform will help you fortify your application further. Prepare a winning dispensary license application by downloading Cova Software’s free template, Dispensary Operations and Security Plan, which will serve as a comprehensive guide to writing a winning plan for a successful cannabis retailer license application.
Gary Cohen is the CEO of Cova Software, the fastest growing technology brand in the cannabis industry. Cohen’s focus has been driving the company’s overall strategy, including its vision, go-to-market plan, and strategic development. Since joining the cannabis industry in 2016 and launching Cova commercially in 4q17, Cohen has led Cova to dominate the enterprise sector for dispensary Point of Sale, while forging client relationships with hundreds of single-store retailers across North America.
With Cova’s cannabis POS and its excellent integrations with eCommerce and delivery services, the online order automatically pops up for the budtender to tender the sales, and the POS system updates inventory once payment is approved. Cova offers multiple eCommerce solutions to choose from, as per your needs and budget, and you can legally sell cannabis online stress-free while staying compliant with strict government regulations.
Equity Member Spotlight: Osbert Orduña – The Cannabis Place
NCIA’s editorial department continues the Member Spotlight series by highlighting our Social Equity Scholarship Recipients as part of our Diversity, Equity, and Inclusion Program. Participants are gaining first-hand access to regulators in key markets to get insight on the industry, tips for raising capital, and advice on how to access and utilize data to ensure success in their businesses, along with all the other benefits available to NCIA members.
Tell us a bit about you, your background, and why you launched your company.
I am a first-generation Latino of Colombian descent, Spanish was my first language and my dad spent most of my youth incarcerated. I grew up in NYC Public Housing projects, and I have first-hand knowledge of the indignity of what it feels like to personally be stopped and frisked nearly 100 times which is what happened to me as a kid and young adult for doing nothing else than being a poor Latino growing up in the hood. I was an Education Opportunity Fund scholar and the first in my family to go to college, where I received a degree in business, and a graduate certificate in law. I earned the designation of Disabled Veteran while serving in Iraq with the United States Marine Corps, and I am also a 9/11 first responder. I retired after a career in public service, and have worked as an entrepreneur for over 10 years, and know what it takes to start a business from scratch, without a rich uncle, generational wealth, or rich financial backers.
In late 2020 and early 2021, I had the opportunity to visit 50 non-MSO recreation and medical dispensaries in five states on the east and west coast. I wanted to learn more about dispensaries and best practices across the industry, but my trip opened my eyes to a different reality. Forty-nine of the dispensaries were owned by white males and one was owned by a white female, not one owner looked like me or shared a similar background. None of these dispensary owners had been stopped and frisked hundreds of times for no other reason than just because they lived in an area with historically high rates of arrests and enforcement from over-policing. Yet they were now engaged in an industry that seemed to exclude us. My trip left me sad but determined to enter the cannabis market so that people who look like me who came from the struggle of the streets, and were collateral damage in the war on drugs could have a chance. I was determined to create a positive example for Latinos and others to follow.
What unique value does your company offer to the cannabis industry?
The Cannabis Place offers a unique value proposition which is our commitment to launching as a union cannabis dispensary on day one. As of yet, we are the only dispensary in the state of New Jersey and the nation to propose this. By launching our business as a unionized shop we are being a partner to our Jersey City, NJ community. Our value proposition promises that we will be a responsible and proactive member of the community that provides union career opportunities with true living wages that will empower our team members to provide upward mobility for themselves, their families, and the greater community. Furthermore, we are engaged as a Workforce Development partner with Cornell University, the Workforce Development Institute, and Hudson County (NJ) Workforce Development Board. With these partnerships, we will develop standardized training modules that will be utilized to train prospective dispensary workers and provide opportunities for those seeking cannabis careers in this new and emerging industry.
Our mission: To provide high-quality cannabis to clients with a consistent product and first-class service they can trust. To build our brand on the core values of client service and care, while maintaining the highest standards of quality, integrity, and community outreach.
What is your goal for the greater good of cannabis?
As the CEO of The Cannabis Place, our primary goal for the greater good of cannabis is to advocate and support a proactive approach to adult-use by providing a local and safe environment to dispense cannabis products. We operate as a social impact cannabis brand and are dedicated to providing consistent access to safe and reliable cannabis products that are ethically grown and sourced. Our aim is to launch the first unionized cannabis dispensary in New Jersey, leading by example, and demonstrating to other businesses that true success is based on placing people over profits.
Our goals are as follows:
Be an accelerator for generational wealth-building opportunities among our employees from the community
Be a reliable source for cannabis education and awareness
Utilize our Community Impact grants to assist and support outreach in areas that have been disproportionately impacted
Our advocacy at The Cannabis Place is based on workers rights, especially organization, fairness and quality healthcare. We believe that it should be easier for people in all job fields to organize. At The Cannabis Place we support the implementation of legislation that will raise the minimum wage floor for all workers in our community, to provide for true living wages that place people over profits. Workers in all industries deserve more from the moment they are hired. Like many others I grew up as part of the working poor, in public housing with limited minimum wage job opportunities, without healthcare and with minimal alternatives to life on the streets. At The Cannabis Place we believe that by providing our workforce with union careers with true living wages and full benefits, our team members, their families and their communities will feel the immediate difference of financial stability, long-term growth, and the impact of upward financial mobility to help them support their family and to build a better life.
What kind of challenges do you face in the industry and what solutions would you like to see?
Latinos are consistently underrepresented in terms of business owners throughout all industries. Now when you focus specifically on cannabis and look at a national level, just 5.7% of all license types are held by the Hispanic community. I have seen challenges in the cannabis industry in two key areas, access to capital and the real estate market. It takes money to make money so if you grew up poor, without generational wealth, no rich uncle, no hedge fund connections or oligarchs to call on, how do you raise funds to have the millions that are needed to launch a dispensary or grow? Next and along the same lines is real estate. A lot of landlords won’t lease to cannabis businesses but unfortunately, our experience has been that again a predatory market exists where cannabis rental rates are 2 to 10 times the normal lease rates for the area. The other option is to buy a commercial parcel which brings us back to issue #1 – access to capital. I am ever the optimist, and I see the Latino community growing in the legal cannabis industry as entrepreneurs, c-suite members, and as leaders in the industry bringing our unique insight and sabor to the industry while creating opportunities for generational wealth for our community. In order to get there, we need to bridge the gap through social equity grants and loans that can help Hispanic cannabis entrepreneurs raise enough capital to start their business, and receiving financial education is also crucial for Hispanic entrepreneurs in multiple phases of the cannabis business planning timeline.
Why did you join NCIA? What’s the best or most important part about being a member through the Social Equity Scholarship Program?
We are a Disabled Veteran and Latino-owned company with a core focus on community impact through social impact so the ability to be a Social Equity Scholarship recipient in an organization like the NCIA, a group who are actually dedicated to ensuring that small cannabis businesses have a seat at the table in Washington, D.C. and beyond, was super important to us. We look forward to learning new information and utilizing networking opportunities to help us grow and succeed in the cannabis industry.
The fact that NCIA is leading change to protect the legal cannabis industry, advocate for our state laws, advance federal policy reforms, and to make this a more inclusive and prosperous space by working together to defend the responsible cannabis industry. Creating more opportunities for small businesses rather than just the wealthiest few is the most important thing for us as members of the Social Equity Scholarship Program.
The Cannabis Place 420 Corp is the first ever Disabled Veteran and Minority Owned Business enterprise to successfully navigate the Jersey City, NJ municipal cannabis dispensary approval process in this new and emerging cannabis market.
Member Blog: Let the Good Times Roll – New Jersey’s Cannabis Markets Primed to Meet High Demand with Two Big Announcements from the Cannabis Regulatory Commission
New Jersey’s medicinal and adult-use cannabis markets are finally starting to take shape more than ten years after the medicinal marijuana program was launched. In the span of one month, the New Jersey Cannabis Regulatory Commission (“CRC”) not only announced awards for fourteen new medicinal cannabis licenses, but also, on November 9, 2021, gave the long-anticipated official notice that the state will soon begin the application process for the award of personal-use cannabis licenses.
In particular, the CRC announced this week that it will begin accepting adult-use applications for Class 1 Cultivator and Class 2 Manufacturer licenses, as well as licenses to run testing laboratories, beginning on Monday, December 15, 2021. Additionally, the CRC announced it will begin accepting applications for Class 5 Retailer personal-use cannabis licenses on March 15, 2022. While there is more information that will be forthcoming from the CRC, some major takeaways from the CRC’s November 9th notice are as follows:
The CRC set forth its scoring criteria and what applicants need to provide to score full points, as well as bonus points;
Bonus points will be awarded for, among other things, confirmation that at least one owner has been a New Jersey resident for at least five years as of the date of the application, and submission of a signed project labor agreement with a bona fide labor organization;
Local support for applicants will be critical as a municipality may, among other things, submit its preference to the CRC for the issuance of licenses to certain adult-use cannabis businesses;
Applications will be accepted on a rolling basis, with no limit on the number of licenses the CRC will award, other than a preliminary limit of 37 Class 1 Cultivator licenses prior to February 22, 2023. These cultivator licenses will be awarded to the first 37 applicants that meet all licensing, regulatory and operational requirements, and satisfy the conditions for priority approval;
The only exception to the above cap on Class 1 Cultivator licenses is for those applicants who apply as a “microbusiness” (there are residency requirements to qualify as a microbusiness, and operations of a microbusiness shall include no more than 10 employees; a facility of no more than 2,500 square feet; possession of no more than 1,000 plants per month; and/or a limit of 1,000 pounds of usable cannabis per month); and
Priority review and approval will be given to applicants who meet the CRC’s social equity, diversely-owned, and impact zone business criteria, in addition to other metrics.
The CRC will hold a pre-application webinar on November 30, 2021 for anyone interested in personal-use cannabis licensure. The medicinal and personal-use cannabis markets have put down deep roots in New Jersey, and consumer demand is budding like never before. Don’t let questions about this new regulatory landscape leave you and your business up in the air.
Charles J. Messina is a Partner at Genova Burns LLC and Co-Chairs the Franchise & Distribution, Agriculture and Cannabis Industry Groups. 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 Roselleis a Partner at Genova Burns LLC and Co-Chair of Genova Burns’ Cannabis Practice Group. 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.
Daniel Pierreis an Associate at Genova Burns and a member of the Cannabis and Labor Law Practice Groups. In addition to labor work, he likewise assists clients in the cannabis industry, from analyzing federal and state laws to ensure regulatory compliance for existing businesses to counseling entrepreneurs on licensing issues.
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.
Member Blog: We’re Out of the Weeds – CRC Releases Initial Rules & Regs for New Jersey’s Adult-Use Marketplace
New Jersey recently passed the Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act (“CREAMMA”). Among other things, CREAMMA permits adults 21 years and older to consume cannabis and allows New Jersey residents to operate six types of cannabis businesses within the state. The new adult-use marketplace, as well as the already established medicinal marketplace, will be administered by the Cannabis Regulatory Commission (“the CRC”). The CRC is a panel of five appointed members who will oversee the development, regulation, and enforcement of the use and sale of all legal cannabis in New Jersey.
The CRC recently approved its first set of rules and regulations on August 19, 2021. This will enable the start of the licensing process for personal adult-use cannabis operations in New Jersey. Here are the 15 takeaways from the initial rules and regulations:
What type of license can I apply for?
There are six different license types:
Class 1 – Cannabis Cultivator License
Class 2 – Cannabis Manufacturer License
Class 3 – Cannabis Wholesaler License
Class 4 – Cannabis Distributor License
Class 5 – Cannabis Retailer License (also includes consumption lounges)
Class 6 – Cannabis Delivery License
Businesses may also apply for a license to operate a cannabis testing facility or medical cannabis testing laboratory. License-holders may hold multiple licenses concurrently; however, there are limitations on the number and type of licenses that may be held concurrently.
Are there any caps on the number of licenses that may be awarded?
The State only placed a cap on Class 1 licenses for cultivators. In particular, there will be a statewide cap of a total of 37 cultivators until February 22, 2023. Keep in mind that state limits aren’t the end of the inquiry; municipalities may set restrictions on the number of businesses in their jurisdiction.
What are the fees to apply for one of the adult-use licenses?
In an effort to make the application fee reasonable, the CRC will require applicants to only pay 20% of the application fee at the time of application, and the remaining 80% will only be collected at the time the license is approved. The initial application cost may be as low as $100 but successful applicants should be prepared to pay additional fees ranging from a total cost of $500 – $2,000.
Are there any fees other than the initial application fee?
Yes. There are annual licensing fees, which can range from $1,000 for a microbusiness to $50,000 for a cultivator, with up to 150,000 square feet of cultivation capacity. This fee range only applies to the adult use marketplace. There is a different licensing fee schedule for the medicinal use marketplace.
Will anyone be given priority in the application process for a cannabis license?
Yes. The CRC will prioritize applicants who live in specifically definedeconomically disadvantaged areas of New Jersey or who have past convictions for cannabis offenses (“Social Equity Applicants”). It will also prioritize applications from minority-owned, woman-owned, or disabled veteran-owned businesses that are certified by the New Jersey Department of the Treasury (“Diversely Owned Businesses”). Businesses in impact zones will also take priority (“Impact Zone Businesses”).
What do you mean by “priority review?”
Applicants meeting the criteria described above will have their applications reviewed before other applications, regardless of when they apply. Remember, however, that priority review doesn’t guarantee selection.
When will the CRC begin to review applications?
No date has been announced, but the CRC promises that it will be soon. The CRC will publish notice in the New Jersey Register announcing its intent to review applications and submissions will be reviewed, scored, and approved on a rolling basis (pun intended), subject to the required priority review for certain applicants.
What should I expect from the application?
Applicants will be expected to submit a detailed application that includes specific details for the proposed site for the business (which must be owned or leased), municipal approval, and zoning approval. Applicants must also submit an operating summary plan detailing the applicants’ experience, history, and knowledge of operating a cannabis business. The scoring of applicants and awarding of licenses will be based entirely on the application materials.
What if I don’t have all of the materials to submit a complete application?
Don’t worry, you can apply for a “Conditional License.” A Conditional License is a provisional award that gives the holder 120 days to become fully licensed by satisfying all the requirements for full licensure, includingfinding an appropriate site, securing municipal approval and applying for conversion to an annual license.
What are the requirements to be considered for a Conditional License?
Conditional License applicants mustsubmit a separate application for each cannabis business license requested, along with a background disclosure, a business plan and a regulatory compliance plan to the CRC. At the time of the application, all owners with decision-making authority of the conditional license applicant will need to prove that they made less than $200,000 in the preceding tax year, or $400,000 if filing jointly.
Are there any advantages in being awarded a Conditional License?
Conditional License holders that convert to an annual license will not have to submit the sections of the application that, under statute, require applicants to demonstrate experience in a regulated cannabis industry. This flexible option offers an opportunity for newcomers to get into the cannabis industry.
What is a Microbusiness License?
Microbusiness licenses are for applicants who want to run a relatively small operation. Applicants may apply for a microbusiness license for any of the six license types. A microbusiness license limits the business to 10 employees; a facility of no more than 2,500 square feet; possession of no more than 1,000 plants per month; and/or a limit of 1,000 pounds of usable cannabis per month.
Can I rely solely on my local municipality for a license?
No. The state must award the cannabis license. Municipalities play a critical role, however, in the licensing process. For example, applicants will only be licensed by the CRC if the applicant has demonstrated support from the municipality, zoning approval, and has been verified to operate in compliance with any other local licensing requirement.
Can municipalities ban cannabis businesses from operating within their jurisdiction?
Yes. Municipalities may ban certain businesses from operating within their borders if they enact an ordinance regulating or banning cannabis businesses by August 21, 2021. Municipalities may update their ordinances at any time to remove any restrictions that they previously placed.
What happens if I don’t follow the CRC’s rules and regulations?
The CRC is authorized to inspect cannabis businesses and testing laboratories, issue notices of violations for infractions and issue fines. Standard fines can be no higher than $50,000, while fines for infractions implicating issues of public safety or betrayal of public trust can be as high as $500,000. Licenses may also be suspended or revoked. Don’t take the risk!
These 15 key points present only a quick summary of the CRC’s initial set of rules and regulations. We anticipate there will be a second set of rules released later this year, which will likely resolve issues that weren’t addressed in the initial set of rules and regulations, or CREAMMA. We expect the second set of rules and regulations to focus mainly on the needs of distribution and delivery service, and preparing for the acceptance of applications, before the Garden State is in full bloom…
Charles J. Messina is a Partner at Genova Burns LLC and Co-Chairs the Franchise & Distribution, Agriculture and Cannabis Industry Groups. 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 Co-Chair of Genova Burns’ Cannabis Practice Group. 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.
Daniel Pierre is an Associate at Genova Burns and a member of the Cannabis and Labor Law Practice Groups. In addition to labor work, he likewise assists clients in the cannabis industry, from analyzing federal and state laws to ensure regulatory compliance for existing businesses to counseling entrepreneurs on licensing issues.
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.
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.
Member Blog: It’s Still Snowing – But is Jersey’s Grass Finally Green?
by Charles J. Messina, Esq., Jennifer Roselle, Esq., and Daniel Pierre, Esq. of Genova Burns LLC
The seeds are planted: Earlier this week, Governor Murphy finally signed the enabling legislation for adult use into law. Although voters approved a referendum to legalize adult use of cannabis back in November, lawmakers’ efforts to draft the enabling legislation often went up in smoke. Until recently, the governor’s office and legislative leaders couldn’t decide how to address underage possession and use of cannabis. Now, lawmakers agree that minors should be subject to a three-tiered warning system in lieu of hefty fines.
But for adults, the Governor’s signature does not allow for immediate access to or use of recreational cannabis. Even with the passage of the recreational use law, residents cannot grow their own cannabis at home or legally purchase it without a medical marijuana card. Presently, there are no dispensaries authorized to sell adult-use cannabis.
Medical dispensaries, however, are expected to be the first access point for the adult-use cannabis market. There are 13 medical dispensaries serving the 100,000+ medical patients in the Garden State, and 24 new medical marijuana licenses are expected to be announced soon, many of which will be designated as dispensaries. Once the existing medical dispensaries demonstrate to the CRC that they have satisfied the medical needs of their patients, and that they have municipal approval for adult-use sales, they should be the first to sell to adults 21 and over.
In order for the Garden State to grow a recreational market, the CRC requires the appointment of two more members. Once all five members of the CRC are appointed, it has a specific timeframe to promulgate the rules that will regulate New Jersey’s recreational use industry. The CRC must, for example, fully develop the criteria and application process for the following six classes of recreational licenses that applicants can apply for:
Class 1 Cannabis Cultivator license — permits growing, cultivation or production of cannabis in New Jersey. Cultivators are also permitted to sell and transport cannabis to other cultivators, manufacturers, wholesalers or retailers, but not to consumers.
Class 2 Cannabis Manufacturer license — permits the manufacturing, preparing and packaging of cannabis and selling it to other cannabis manufacturers, wholesalers, retailers, but not to consumers.
Class 3 Cannabis Wholesaler license — permits the storage and sale of cannabis strictly for resale to another wholesaler or retailer, but not to consumers.
Class 4 Cannabis Distributor license — permits the intrastate transportation of cannabis in bulk from one licensed cannabis establishment to another licensed cannabis establishment. Distributors may also engage in the temporary storage of cannabis as necessary to carry out transportation activities.
Class 5 Cannabis Retailer license — permits the sale of cannabis directly to members of the public from a retail store. Cannabis retailers may also operate cannabis consumption areas for consumers.
Class 6 Cannabis Delivery license — permits courier services for consumer purchases of cannabis by a cannabis retailer directly to consumers.
Once established, we anticipate applications for licensing to be announced. This will certainly happen after the epic snowfall melts, but many New Jerseyans and others are already starting to get their fertilizer ready…
Charles J. Messina is a Partner at Genova Burns LLC and Co-Chairs the Franchise & Distribution, Agriculture and Cannabis Industry Groups. 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 Counsel with Genova Burns LLC and Co-Chair of Genova Burns’ Cannabis Practice Group. 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.
Daniel Pierre is an Associate in Genova Burns’ Newark, NJ office and a member of the Cannabis and Labor Law Practice Groups. In addition to labor work, he likewise assists clients in the cannabis industry, from analyzing federal and state laws to ensure regulatory compliance for existing businesses to counseling entrepreneurs on licensing issues.
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.
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.
State of the States – Cannabis Policy Reform in the Current Legislative Sessions
by Morgan Fox, NCIA Director of Media Relations
The last few weeks have seen quite a bit of excitement for the possibility of comprehensive federal cannabis policy reform being closer than it has ever been, but what about the states?
Historically, the vast majority of progress has been made at the state level, and this year is shaping up to be another one full of victories for legalization advocates as state governments struggle to support their economies, create new tax revenue and job sources, and tackle long-overdue criminal justice reforms.
The overwhelming approval by New Jersey voters of a referendum to make cannabis legal for adults last year has put the spotlight firmly on the Northeast and mid-Atlantic regions. With state legislative sessions already underway, a number of states are already prioritizing legalization much more heavily than in years past even as New Jersey lawmakers struggle to pass enacting legislation to carry out the will of the voters in a fair and equitable manner. It is pretty clear that New Jersey’s neighbors don’t want to be left behind when it starts reaping the benefits of regulated cannabis markets.
Early this year, New York’s Gov. Andrew Cuomo released a statement outlining his plan to make cannabis legal in the state, and just recently added amendments that would allow delivery, clarify the tax system, and reduce penalties associated with some cannabis activities. There are still some concerns with this plan, including the amount of funding that would actually go toward repairing the disparate harms caused by prohibition and the lack of legal home cultivation. Regulated cannabis in New York could be worth more than $3.5 billion and create more than 60,000 jobs, making it one of the largest state cannabis markets in the country.
Meanwhile, in Delaware, a legalization bill that was approved in the state House in 2019 is slated to be reintroduced by the sponsor in the coming weeks. This bill would come on the heels of a report released last month by the state auditor which estimated that Delaware could take in $43 million annually with a 20% excise tax, and create more than 1,400 jobs over a five year period. In what seems to be a disturbing trend in some state legislatures this year, this bill is not expected to initially include home cultivation either.
In Connecticut, however, a new adult-use bill has been introduced that would center on restorative justice and social equity in the industry and would allow adults to grow limited amounts of cannabis in their homes. This bill has strong support in the state legislature but may soon have to compete with Gov. Ned Lamont’s proposal, which is expected to be released soon.
Nearby Pennsylvania is likely to consider adult-use legislation this year, with Gov. Tom Wolf (along with the incredibly supportive and newly internet-famous lieutenant governor) urging lawmakers to address the issue and – earlier this month – calling it a priority for his state’s annual budget proposal. Rhode Island lawmakers are expected to consider legalization again this year as well, and with the departure of Gov. Raimondo, it is more likely that the emphasis will shift away from a state-run model and back to regulating private businesses.
Farther South, Virginia made headlines this month by becoming the first state in 2021 to have both chambers of its legislature approve adult-use bills. Lawmakers are committed to ironing out the differences between the two bills this month during an extended session. With Gov. Ralph Northam in full support, Virginia stands poised to become the 16th state overall to make cannabis legal for adults and the first state to do so in the South, and it would be only the third to regulate cannabis through its legislature.
Adult-use legislation has also been introduced in Maryland, with supporters and cosponsors optimistic that it could be passed this year, though lawmakers there are not as far along in the process as their neighbors in Virginia. And in medical news, advocates in South Carolina are taking another shot at passing a medical cannabis bill there.
There are signs of progress from elsewhere in the nation as well. After running out of time in an emergency session last year, New Mexico’s governor and lawmakers wasted no time in getting back to legalization efforts this year. There are currently several bills being considered, and it appears very likely that some form of adult-use will be approved there this year.
This is just a snapshot of the momentum and positive movement we are seeing at the state level this year. If you are interested in up-to-date information about all cannabis-related state legislation in the U.S., please consider subscribing to Marijuana Moment’sbill tracker.
Unfortunately, the news isn’t all good.
In South Dakota, where voters approved both medical and adult-use initiatives in November by wide margins, advocates have suffered a temporary setback on the adult-use front. After a pair of law enforcement officials sued to have the adult-use bill thrown out because it addresses too many issues for a constitutional amendment, a circuit court judge ruled in their favor earlier this month. This situation is extremely disheartening and outrageous: the will of the people was overturned by a judge who was appointed by a governor who not only actively campaigned against the ballot initiative but also paid for the lawsuit to overturn it with taxpayer money! However, supporters have appealed the decision to the state Supreme Court.
In Montana, where voters also passed an adult-use initiative in November, supporters are faced with another lawsuit on similar grounds that was filed by opponents. However, observers are skeptical of that suit being successful, and lawmakers are moving ahead with developing enacting legislation.
And in Idaho, where a medical cannabis initiative was prevented from getting on the ballot last year, prohibitionist lawmakers are moving forward with a bill that would prevent any future legislation to make cannabis or any other currently illegal substance legal. If passed, this bill would be put before the voters in 2022, where it could very well be on the same ballot as a medical cannabis referendum.
Despite efforts to overturn progress and maintain failed and harmful cannabis policies, things are generally looking up and we expect several states to pass laws to stop arresting cannabis consumers and establish legal, regulated marketplaces in the near future.
Voters in New Jersey, Arizona, South Dakota, and Montana legalized adult-use cannabis sales during November’s election. So, what comes next?
Last month, Americans in four states voted to legalize adult-use cannabis.
If you’re an adult over 21 in Arizona, New Jersey, South Dakota, or Montana, theoretically, you’ll be able to consume and purchase cannabis legally in 2021.
To many Americans, the end of cannabis prohibition in these states looks like a sudden act of voter mobilization. But industry insiders know it took years of work by activists, business people, and lawmakers to make legalization possible.
Before adults can legally purchase and consume cannabis, lawmakers in each state must outline rules and regulations, and dispensaries must go through intense licensing processes before opening their doors to the public.
The process won’t happen overnight.
In some newly legal states, it could take close to a year to iron out the details. And in the past, it’s taken even longer.
Take Massachusetts, for example. Voters cast their ballots in favor of legalization in 2016, but the first dispensary didn’t open until 2018.
Maine’s citizens also voted in support of legal weed in 2016, but it took four years for the first dispensary to open. The first two retailers – SeaWeed and Theory Wellness – opened on October 8 of this year.
“It has taken four years to move from referendum to retail sales since Mainers narrowly approved the legalization of recreational cannabis at the ballot box in 2016. Legislative rewrites, gubernatorial vetoes, a change in state administration, and then the impact of COVID-19 pandemic have combined to make Maine’s rollout the slowest in U.S. history.” – Portland Press Herald
Lawmakers in New Jersey are trying to speed things up. Democratic Senator Nick Scutari wants to move quickly to pass legislation modeled off a 2019 legal cannabis bill he sponsored. Still, legislators are fighting over the details. New Jersey’s Medical Marijuana licensing policies force applicants to pay large sums to compete for a limited number of licenses, allowing big businesses with deep pockets and holdings in other legal states to make millions.
Some New Jersey lawmakers are trying to keep the same from happening when adult-use dispensaries open their doors by prioritizing local businesses.
Arizona lawmakers anticipate legal cannabis sales to begin as early as March. The state plans to prioritize licenses for owners “from communities disproportionately impacted by the enforcement of previous marijuana laws.” Arizona’s 123 medical marijuana dispensaries will have the first opportunities to apply for adult-use licenses in January after the Arizona Department of Health Services writes the rules.
Entrepreneurs in South Dakota and Montana are ready to apply for dispensary licenses, but they, too, will have to wait.
In South Dakota, lawmakers say dispensaries will be open and selling legal adult-use cannabis by July 1. In Montana, people should be able to legally purchase cannabis on October 1, barring any bumps in the road.
Have we reached a tipping point?
The public’s view of cannabis is changing. One in three Americans now live in a state with legal weed, and, according to a recent Gallup poll, 68% of Americans support federal cannabis legalization. So, have we reached a tipping point?
That’s hard to say.
Thirty-six states now have a legal medical cannabis system. When sales begin in Arizona, New Jersey, South Dakota, and Montana, more than twenty states will have fully legalized cannabis. And while federal cannabis reform might be a defining aspect of the incoming administration’s legacy, legalization is mostly dependent on congress, and it’s still unclear which party will control the Senate next year.
Democratic leaders have pledged to end federal cannabis prohibition. If the Democratic party wins Senate control, full legalization is almost a certainty. But if Republicans maintain their Senate majority, the Republican party’s past approach to cannabis doesn’t indicate their leaders are ready to support far-reaching reform. Still, federal cannabis legalization isn’t outside the realm of possibility, even with a Republican-controlled Senate.
Only time will tell.
And again, regardless of what happens politically, it’s obvious America’s opinion of cannabis isn’t what it once was.
Oprah asked former President Obama if he and Michelle indulged in “pizza, pot, or alcohol” on election night in a recent televised interview. When a television icon casually asks a former President if he smoked weed with the former first lady, you know attitudes are changing.
Could federal cannabis legalization be the key to healing our COVID-ravaged economy?
This year, COVID-19 slowed the progress of cannabis legalization for individual states, but the pandemic could help push federal legalization forward next year. Here’s why.
A federally legal cannabis industry would accelerate America’s economic recovery.
The pandemic has had a catastrophic impact on many industries, and while a lot of employees will return to work, many jobs will be forever lost. The longer it takes for people to find employment, the longer it will take for the economy to recover.
The end of federal cannabis prohibition would create thousands of new jobs and reverse the pandemic’s adverse economic impact.
Here’s a point to consider: according to estimates from New Frontier Data, America’s legal cannabis market could be worth nearly $30 billion by 2025 – and that’s without federal legalization. If government officials choose to end federal prohibition next year, the estimates will increase dramatically.
For cannabis dispensaries, cultivators, cannabis-adjacent businesses (like cannabis marketing agencies), and American citizens, a nationwide end to prohibition would be life-changing.
But again, what the immediate future holds is anyone’s guess.
Aaron Rosenbluth is Hybrid Marketing Co‘s Content Director, and he loves to write blogs. He’s written so many blogs that he’s lost count. And beyond his skills as a copywriter and storyteller, he’s an obsessive reader and researcher. Aaron writes on subjects ranging from cannabis to collaboration, social equity to HR software, interior design to cybersecurity. His words attract, engage, educate, and convert. Btw, Aaron hates the phrase “content is king” (even though content is king – and queen).
Hybrid Marketing Co is a Denver-based branding and marketing agency that specializes in building custom strategies that supercharge growth and drive revenue. Working with brands and businesses across the U.S. and Canada, Hybrid’s partners run the full-spectrum of the cannabis world including dispensaries, manufacturers, cultivators, and ancillary businesses. Visit hybridmarketingco.com to learn more about the Hybrid approach.
Member Blog: Rolling Out Legal Cannabis in New Jersey – 15 Key Points from the Proposed Law
by Charles J. Messina, Esq. and Daniel Pierre, Esq. of Genova Burns LLC
Many are thrilled that the Garden State will finally allow recreational use of cannabis for adults aged 21 years and older. Before recreational use can become legal, however, we have to wait for Trenton to pass a law that will regulate New Jersey’s cannabis marketplace. Determined to get the ball rolling, Senators Nicholas Scutari and Stephen Sweeney recently introduced a 200+ page bill, S-21, to start the process for legalization. This article highlights major points from the bill you should know if you’re looking to join this emerging industry.
Is adult-use (recreational) of cannabis currently legal in New Jersey?
No. Although New Jersey voters approved the referendum that amended the State Constitution to legalize the recreational use of cannabis for adults age 21 years and older, recreational use is not legal until New Jersey lawmakers pass a bill that regulates recreational use of cannabis.
When will New Jersey lawmakers pass the enabling law?
It is uncertain when the enabling law will pass. But Senator Nicholas Scutari said he wants the bill to hopefully pass before the end of this month. Two days after the referendum passed in New Jersey, he and Senator Stephen Sweeney introduced Bill S-21 – “New Jersey Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act.” If passed, the bill will legalize the personal use of cannabis for adults subject to regulation by the Cannabis Regulatory Commission.
What is the Cannabis Regulatory Commission (CRC)?
The CRC is a panel of five appointed individuals who will be responsible to oversee the development, regulation, and enforcement of use and sale of cannabis in New Jersey. The CRC will also implement the legislation that Governor Murphy will ultimately sign to legalize recreational use within the state.
Who are the CRC members?
As of today, only two appointees have been named – Dianna Houenou, who will serve as the CRC Chair, and Krista Nash as a member. Although we are still waiting for the remaining three members to be named, we know that Jeff Brown – the Assistant Commissioner of the Department of Health, who currently leads the medicinal marijuana program in New Jersey – has been tapped to become the first Executive Director of the CRC.
What are the CRC’s powers?
The CRC has the authority to, among other things, adopt, amend or repeal regulations that control the cannabis marketplace. It can also grant, refuse, suspend, revoke, cancel, or take actions otherwise limiting licenses or conditional licenses related to cannabis.
What are the different types of cannabis licenses contemplated in the proposed legislation?
Currently, there are six classes of licenses:
Class 1 Cannabis Grower license – permits growing, cultivation, or production of cannabis in New Jersey.
Class 2 Cannabis Processor license – permits manufacturing, preparing, and packaging of cannabis.
Class 3 Cannabis Wholesale license – permits the storage and sale of cannabis strictly for resale.
Class 4 Cannabis Distributor license – permits the intrastate transportation of cannabis in bulk.
Class 5 Cannabis Retailer license – permits the sale of cannabis directly to members of the public.
Class 6 Cannabis Delivery license – permits delivery of cannabis from a retailer to the public.
Also, the bill was recently amended to allow the CRC to create a new license category.
Can individuals or small businesses apply for any of the licenses?
Yes. Under the current version of the bill, at least 25% of the total number of licenses in each class are reserved solely for microbusinesses. “Microbusiness” is defined as a person or entity with business operations that employ no more than 10 employees. Reserving 25% of licenses for small businesses is intended to, among other things, prevent interstate megabrands from completely dominating the marketplace in New Jersey.
Are there any restrictions placed on microbusinesses?
Yes, in order to qualify as a microbusiness under the proposed legislation, you cannot process more than 1,000 cannabis plants each month, operate a cannabis establishment that occupies more than 2,500 square feet, or acquire more than 1,000 pounds of cannabis in dried form for retail, resale, or processing each month.
Can I personally grow cannabis from my house for personal use or retail?
No. There is currently no “home grow” component to the bill.
Can I hold two classes of licenses concurrently?
As currently written, there are certain restrictions with respect to holding two classes of licenses concurrently. In particular, once retail sales of cannabis begin, there is supposed to be an 18-month limitation on the number and classes of licenses any one licensee may hold. During this 18-month period, the current bill prohibits a licensed grower, processor, wholesaler, distributor, or delivery service licensee to also become a licensed retailer, and vice versa. Also, a grower or processor may only concurrently hold two licenses – either another grower or processor license – for now.
How do I apply for a license?
Not so fast…first, the remaining appointment of the CRC Commissioners needs to happen along with the promulgation of regulations by the CRC. Then at some point in 2021, an application round for licenses should be announced. Each application for an annual license to operate a cannabis business must be submitted to the CRC. A separate license or conditional license will be required for each location where a cannabis establishment seeks to operate (or for the location of each premises from which a cannabis distributor or delivery service seeks to operate). Renewal applications for another annual license may be filed up to 90 days prior to the expiration of the establishment’s, distributor’s, or delivery service’s license.
What should I be doing now to prepare for obtaining a license?
Too much to write in one paragraph! But, after forming your application team and getting your corporate formation ducks in a row, one of the first things you should be thinking about is location.
Does that mean municipal approval is required in order to open a cannabis business?
Good guess. The CRC will require proof of local support for the suitability of the location of your proposed cannabis business. There were 70+ municipalities that were intending to ban canna-businesses. This number is likely to drop as municipalities should be able to charge up to a 2% tax on cannabis sales, which can help plug the deficit gap related to the ongoing COVID-19 pandemic and further other social justice initiatives.
Speaking of taxes, how will cannabis be taxed once regulated?
According to the referendum, cannabis products would be subject to New Jersey’s sales tax (i.e., 6.625%), in addition to the potential local tax of up to 2%. As the bill is currently drafted, the sales tax revenue is supposed to be used to administer the cannabis program and reimburse police departments for training costs associated with enforcing the law. There may also be an additional tax imposed on cultivators, and that revenue would likely be directed to social equity initiatives.
Will the CRC prioritize applications based on location?
Yes. The CRC is supposed to prioritize applications on the basis of impact zones, for which past criminal marijuana enterprises contributed to higher concentrations of law enforcement activity, unemployment, and poverty. The bill defines an “impact zone” as any municipality that has a population of 120,000 residents and ranks in the top 40 percent of municipalities in New Jersey for cannabis related arrests.
Daniel Pierre is an Associate in Genova Burns’ Newark, NJ office and a member of the Cannabis and Labor Law Practice Groups. In addition to labor work, he likewise assists clients in the cannabis industry, from analyzing federal and state laws to ensure regulatory compliance for existing businesses to counseling entrepreneurs on licensing issues.
Charles J. Messina is a Partner at Genova Burns LLC and Co-Chairs the Franchise & Distribution, Agriculture and Cannabis Industry Groups. 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.
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.
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.
Election Night 2020: Victories For Sensible Cannabis Policies
by Morgan Fox, NCIA’s Director of Media Relations
While the country waits for the outcomes of national elections that could very well impact the future of cannabis policy reform advocacy, we do have a LOT to be happy about today!
Last night, adult-use and medical ballot initiatives SWEPT the elections, passing in every state in which they were considered!
Voters in Arizona, Montana, New Jersey, and South Dakota all passed measures making cannabis legal and regulated for adults. South Dakota also approved a medical cannabis initiative by an even greater margin, and was joined by Mississippi where an overwhelming majority of voters not only supported medical cannabis but chose the much more comprehensive of two competing options.
You can learn more about these initiatives here and how they fared in the elections here.
There are a lot of important milestones and lessons to observe from these historic results.
First, let’s talk about New Jersey. Roughly two thirds of voters in the state approved this ballot measure, which was referred to them after lawmakers were unable to pass similar legislation last year. This is a big jump in ballot approval margins; before now, the most popular legalization referendum was in California, which approved Proposition 64 in 2016 with 57% of the vote. That’s a 10% margin increase in just four short years! The large population and huge market potential (more than $1.5B by 2025) are sure to have a major impact on the industry. Regionally, passage of this initiative is certain to add urgency to adult-use cannabis regulation efforts in states like New York, Pennsylvania, Connecticut, Delaware, and Rhode Island.
South Dakota also set a record by becoming the first state to approve an adult use law before having an established medical cannabis system, and in a very conservative state no less! Voters supported both medical and cannabis initiatives despite strong opposition from the governor and other officials.
In Arizona, after voters narrowly defeated a legalization initiative in 2016, a significant swing brought a 10% increase in support resulting in passage. This long-overdue change is especially important because Arizona is the only state where simple possession is a felony and nearly 15,000 people are arrested every year.
So what does this mean for future reform efforts?
First and foremost, the passage of the adult use initiatives means nearly 34% of Americans now live in states with laws making cannabis legal and regulated for adults. These four states account for roughly 60,000 marijuana arrests every year, mostly for simple possession. Congressional representation of states where cannabis is legal for adults will increase by 29 representatives and eight senators. This doesn’t guarantee their support for cannabis legislation, but it certainly increases the chances.
Second, passage of cannabis policy reform initiatives in conservative states like Mississippi, Montana, and South Dakota should send a signal to Republican lawmakers in Congress that this is an issue that they can support, and one which they will face political consequences for impeding. The fact that all three of these states had multiple cannabis-related issues on the ballot and voters were not swayed or confused is a testament to the will for change in these areas and a growing understanding of the issue.
Long story short: more and more states will continue to enact sensible, modern cannabis policies in the coming years, and every state that does so will help add to the chorus of voices from the public and in Congress calling for an end to outdated federal prohibition policies.
Possession:Adults 21+, 1 ounce flower or 5 grams concentrate
Home cultivation:YES, adults 121+ may have up to 6 plants in an enclosed locked location out of public view.
Licenses:
Issue no more than one marijuana establishment license per 10 pharmacies;
Issue no more than two marijuana establishment licenses in counties that contain no registered nonprofit medical marijuana dispensaries;
Issue no more than one marijuana establishment license in counties with one nonprofit medical marijuana dispensaries; and
Issue 26 licenses, notwithstanding the other limits, to entities qualified under the Social Equity Ownership Program.
Social Equity: Department of Health Services would be required to establish a Social Equity Ownership Program to promote cannabis business ownership and employment for individuals from communities disproportionately impacted by the enforcement of previous marijuana laws.
Proposition 207 would establish a fund called the Justice Reinvestment Fund (JRF). Revenue in the JRF would be allocated as follows:
35 percent to local public health departments in proportion to the county’s population for the purpose of providing justice reinvestment programs or giving grants to nonprofits to provide justice reinvestment programs within the county’s area.
35 percent to DHS to provide grants to nonprofits to provide justice reinvestment programs in the state.
30 percent to DHS “for the purpose of addressing important public health issues” that affect Arizona.
Taxes & Revenue:
Transaction Privilege Tax (currently 5.6%)
Specific 16% excise tax (non-medical)
Revenue from the excise tax and license fees would be deposited into the Smart and Safe Arizona Fund. First, revenue would be used to implement and enforce marijuana regulations. The remaining revenue would be allocated as follows:
33.0 percent for community college districts;
31.4 percent for municipal police and fire departments, county sheriff departments, and fire districts;
25.4 percent for the state’s Highway User Revenue Fund;
10.0 percent for the new Justice Reinvestment Fund; and
Alternative 65A – Rep. John Thomas “Trey” Lamar and Rep. Brent Powell
Possession:
Initiative 65 – Qualifying patients may purchase/possess up to two and a half (2.5) ounces every 14 days
Alternative 65A – Undefined, no explicit protections
Home Cultivation: NO
Licensing:
Initiative 65 – TBD by Dept. of Health; no limits on number of treatment centers; may not be located within five hundred (500) feet of a pre-existing school, church, or licensed child care center
Alternative 65A – Undefined
Social Equity: None explicitly included in either initiative.
Taxes & Revenue:
Initiative 65 – Dept. of Health may authorize taxes up to the level of the state sales tax (currently 7%); revenue to be used for special operating fund and may not revert to state general fund
Ballots: Initiative 190 Marijuana Legalization Initiative (adult use), CI-118 Allow for a Legal Age for Marijuana Amendment
Summary:
Initiative 118 would allow legislation or a citizen initiative to set the legal age limit for possession at an age higher than the state definition of adulthood (18 years old).
Initiative 190 would regulate cannabis for adults age 21 and older.
Possession: Adults 21+, up to one ounce of flower or 8 grams of concentrate
Home Cultivation: YES, up to four (4) plants per adult, maximum eight (8) per household.
Licensing:
The Department of Revenue shall develop rules and regulations regarding licensing of providers, marijuana-infused products providers, and dispensaries for adult use. For the first 12 months, only existing medical cannabis licensees may apply. Provider licenses are established in tiers based on canopy size and also include micro-business licenses. Applicants must have resided in Montana for at least one year prior and may not have been convicted of a felony involving fraud, deceit, or embezzlement or for distribution of drugs to a minor within the past 5 years. Cannabis businesses may not be located within 500 feet of a school or place of worship unless permitted by the local jurisdiction.
Social Equity: Persons convicted of behavior permitted by Initiative 190 may apply for resentencing or expungement.
Taxes & Revenue:
Specific sales tax – 20%
Revenue will be used to fund operating costs of regulation as well as to support conservation efforts, substance abuse treatment and education, veterans programs, local governments, the general fund, and other programs. More information is available here.
2020 Marijuana Ballot Initiatives – Time to Make History!
by Madeline Grant, NCIA’s Government Relations Manager
With the election coming up just around the corner, 2020 could be another big year for our movement. It is imperative that we all head to the polls, send in our mail-in ballots and make our voices heard in this monumental election. This week I will briefly go over each ballot initiative that has officially qualified for the November ballot. As we continue to get closer to the election, I will get into detail about what each ballot initiative does for each state. 2020 has been a year of uncertainty and as we approach the election it is our duty as U.S. citizens to get out and vote and as members of the cannabis industry, it’s important that we support the expansion of markets by donating to initiative campaigns.
Without further ado please see marijuana ballot initiatives below:
More information provided by the Marijuana Policy Project here.
Nebraska – Medical marijuana ballot initiative is no longer happening due to the Nebraska Supreme Court deeming the legalization of medical marijuana on the November ballot as unconstitutional. Following over 180,000 signatures by Nebraskans in support of the measure, the Supreme Court decided to not include the vote on November’s ballot on the day before the deadline. The justification of unconstitutionality came from Nebraska’s single-subject rule for a ballot measure, which bans multiple issues into yes-or-no questions for voters to address.
It is more important than ever to get out and vote. Our government relations team works hard in our nation’s Capital to achieve legislative victories at the federal level; however, achieving legislative victories at each state is just as important. It is through each successful ballot initiative at the state that provides the proof and support for legislative change and policy reform at the federal level. States are moving forward; therefore, we must be on Capitol Hill. We must keep fighting the good fight and get out and show our support for cannabis policy reform.
Are you interested in any of these states or want to learn more about one of these ballot initiatives? If so, please feel free to reach out to me to set up a meeting to discuss the information in more detail or contact the campaigns directly to find out how you can support them.
2018 NATIONAL CANNABIS INDUSTRY FORECAST
Michelle Rutter, NCIA
by Michelle Rutter, NCIA Government Relations Manager
With the beginning of 2018, we start another election year. Multiple states in the midwest are running medical cannabis ballot initiatives, while Vermont is set to become the first state to legalize adult-use cannabis through the state legislature. In Washington, D.C., policy moves at a slower pace, but with Attorney General Jeff Sessions in office, it’s important to remain vigilant. Let’s take a look at what may happen in cannabis policy across the country:
MEDICAL CANNABIS POLICY
UTAH
The Utah Patients Coalition (UPC) is leading a 2018 ballot campaign to establish a medical cannabis program. The initiative seeks to protect terminally and seriously ill patients with specific debilitating medical conditions, including HIV/AIDS, PTSD, and chronic pain, among others. In addition, the initiative allows for caretakers to administer medical cannabis and would issue four types of licenses if passed: cultivation facilities, processing facilities, independent testing laboratories, and dispensaries.
The Chairman of the Senate Finance Committee, Orrin Hatch (R-UT) has introduced a medical cannabis research bill, and has even said on the Senate floor that medical cannabis can be an alternative to opioids. Passing the 2018 ballot initiative in his home state of Utah will be critical to furthering advocates’ work at the federal level.
A recent poll done by the Salt Lake Tribune found that 3 in 4 Utahns support legalizing medical cannabis. The campaign must collect 113,143 signatures from registered voters in order to qualify for the ballot. As of October 2017, the coalition had already garnered 20,000 signatures.
MISSOURI
A group called New Approach Missouri has formed and is in the process of collecting signatures for a proposed constitutional amendment to their state constitution that would legalize medical cannabis. The initiative would create a statewide system for production and sale of medical cannabis and provides for limited and regulated patient cultivation. Interestingly, the initiative levies a four percent retail tax, but all revenue in excess of the cost of regulating the medical cannabis program will go towards Missouri’s veterans.
New Approach Missouri must to collect 160,199 valid signatures from registered voters in order to be placed on the ballot. As of December 2017, the campaign had collected roughly 100,000 signatures. A poll done in 2015 showed that 85% of Missourians support implementing a medical cannabis program.
OKLAHOMA
Oklahomans for Health is the proponent of the upcoming state question SQ788, which would create a medical cannabis program. Obtaining a state-issued medical marijuana card would require a board-certified physician’s signature, though there are no specific qualifying conditions. The measure would enact a seven percent tax on marijuana sales, with revenue financing regulatory costs. Any surplus would be distributed: 75% to the General Fund to be used for education, and 25% to the Oklahoma State Department of Health to be used for drug and alcohol rehabilitation.
The initiative has already qualified, and will appear on the ballot in November 2018. Polling data is scarce, however, a 2013 poll showed that 71% of Oklahomans supported legalizing medical cannabis.
SOUTH DAKOTA
A group known as New Approach South Dakota is behind an effort to legalize medical cannabis in 2018. The group was also hoping to submit signatures to legalize adult-use cannabis, but was unsuccessful. The measure would set an excise tax on marijuana that would include a $50 per ounce tax on cannabis flower for buyers, and would have other taxes apply to buying immature plants and other parts of the cannabis plant.
In November 2017, New Approach South Dakota submitted roughly 15,000 signatures to qualify for the ballot- that’s just 1,000 more than required. The state hopes to review submitted ballot initiatives in the coming months.
ADULT-USE CANNABIS POLICY
MICHIGAN
The Coalition to Regulate Marijuana Like Alcohol has officially submitted ballot language to the State of Michigan that would legalize consumption and possession of marijuana for adults 21 and over in Michigan. The proposal enacts an excise tax on marijuana at the retail level in addition to the standard state sales tax and provides for state regulators to grant business licenses for cultivators, processors, testing facilities, secure transporters, retail stores and microbusinesses.
In November 2017, the Coalition to Regulate Marijuana Like Alcohol turned in more than 360,000 signatures to qualify for the ballot– that’s 100,000 signatures beyond the 252,000 required by the state. Polling done in early 2017 showed that 57% of Michiganders would support legalizing cannabis.
VERMONT
Vermont is poised to make history and become the first state to legalize adult-use cannabis through the state legislature in early 2018. In December 2017, Vermont House Speaker Mitzi Johnson (D) said, “It will be up for a vote in early January. I expect that it likely will pass in early January.”
The state came incredibly close to passing language that would have legalized adult-use cannabis back in 2017, however, the legislature was unable to make changes Governor Phil Scott (R) requested before the session ended. The Governor has since stated that he is “comfortable” with signing legalization legislation.
OHIO
The group that unsuccessfully ran a ballot initiative in 2015 to legalize cannabis in Ohio is making a comeback in 2018. In December 2017, a team announced that they will work to place a cannabis legalization measure on the ballot in 2018. Known as the Regulate Marijuana Like Alcohol Amendment, the measure would allow people over the age of 21 to purchase and use cannabis legally. The amendment would also create a taxed and regulated cultivation, processing, and sales system.
Valid signatures from 305,592 registered voters are required before July 4, 2018, in order to qualify the measure for the ballot.
NEW JERSEY
Unlike New Jersey’s Governor Chris Christie (R) , Governor-Elect Phil Murphy (D) is setting a positive tone on cannabis in the state. Murphy has advocated for legalization multiple times, and even made one of his campaign promises to legalize adult-use cannabis in his first 100 days in office.
Democrats in the state legislature have already introduced multiple bills to tax and regulate adult-use cannabis, predicted to be worth more than $1 billion in the state. The full legalization bill currently being considered is S3195, sponsored by state Senator Nicholas Scutari (D). Sen. Stephen Sweeney (D), the state senate’s president, has already promised to pass the bill within the first three months of Murphy’s administration.
Recent polling shows that over 60% of New Jersey residents support legalizing cannabis.
CANNABIS DECRIMINALIZATION
VIRGINIA
In November 2017, voters in Virginia elected Ralph Northam (D) as their next Governor. Northam made cannabis decriminalization a centerpiece of his gubernatorial campaign, and has even spoken about the hemp cultivation and the medical benefits of cannabis.
Virginia lawmakers considered but did not act on decriminalization legislation during the 2017 session. However, with the State Crime Commission conducting a study on the effects of decriminalization in the state at the request of the Republican Senate majority leader, advocates remain hopeful in 2018.
FEDERAL CANNABIS POLICY
While 2018 is shaping up to be a busy year for cannabis policy at the state level, things will likely move slowly in Washington, D.C. NCIA will be working to ensure language protecting medical cannabis patients (the Rohrabacher-Blumenauer amendment, formerly known as the Rohrabacher-Farr amendment) remains in federal law. NCIA will also be lobbying to expand that language to apply to adult use states (McClintock-Polis amendment) and to include a banking amendment that would allow cannabis businesses access to financial services (Heck amendment).
As leadership in both houses of Congress continue to negotiate the final version of the tax reform bill, there will be opportunities next year for Congress to make additions and changes on future individual tax legislation. NCIA will be looking at any possible avenues to have 280E legislation be included in future bills if the opportunity arises. Action on the cannabis banking bill is unlikely in 2018, however, NCIA will continue to advocate for a committee hearing, gather more cosponsors on HR 2215: The SAFE (Secure and Fair Enforcement) Banking Act, and work to identify a Republican lead sponsor for the bill in 2019.
NCIA will also be working to ensure that the Cole Memo remains in place. Attorney General Jeff Sessions has recently said that the Department of Justice will be reviewing current memos, and that “Guidance documents can be used to explain existing law… but they should not be used to change the law or to impose new standards to determine compliance with the law… This Department of Justice will not use guidance documents to circumvent the rule-making process, and we will proactively work to rescind existing guidance documents that go too far.” While Attorney General Sessions is very clearly personally opposed to cannabis, it’s important to note that personal feelings are not official Justice Department policy.
In addition, NCIA is working behind the scenes to educate the Trump Administration on cannabis policy, maintain the Cole Memo, protect cannabis patients and consumers, and make positive remarks regarding medical cannabis in 2018.
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by Mike Lomuto, NCIA’s DEI Manager
Mack Bush
Gary Cohen is the CEO of 
NCIA’s editorial department continues the Member Spotlight series by highlighting our 
I am a first-generation Latino of Colombian descent, Spanish was my first language and my dad spent most of my youth incarcerated. I grew up in NYC Public Housing projects, and I have first-hand knowledge of the indignity of what it feels like to personally be stopped and frisked nearly 100 times which is what happened to me as a kid and young adult for doing nothing else than being a poor Latino growing up in the hood. I was an Education Opportunity Fund scholar and the first in my family to go to college, where I received a degree in business, and a graduate certificate in law. I earned the designation of Disabled Veteran while serving in Iraq with the United States Marine Corps, and I am also a 9/11 first responder. I retired after a career in public service, and have worked as an entrepreneur for over 10 years, and know what it takes to start a business from scratch, without a rich uncle, generational wealth, or rich financial backers. 
Latinos are consistently underrepresented in terms of business owners throughout all industries. Now when you focus specifically on cannabis and look at a national level, just 5.7% of all license types are held by the Hispanic community. I have seen challenges in the cannabis industry in two key areas, access to capital and the real estate market. It takes money to make money so if you grew up poor, without generational wealth, no rich uncle, no hedge fund connections or oligarchs to call on, how do you raise funds to have the millions that are needed to launch a dispensary or grow? Next and along the same lines is real estate. A lot of landlords won’t lease to cannabis businesses but unfortunately, our experience has been that again a predatory market exists where cannabis rental rates are 2 to 10 times the normal lease rates for the area. The other option is to buy a commercial parcel which brings us back to issue #1 – access to capital. I am ever the optimist, and I see the Latino community growing in the legal cannabis industry as entrepreneurs, c-suite members, and as leaders in the industry bringing our unique insight and sabor to the industry while creating opportunities for generational wealth for our community. In order to get there, we need to bridge the gap through social equity grants and loans that can help Hispanic cannabis entrepreneurs raise enough capital to start their business, and receiving financial education is also crucial for Hispanic entrepreneurs in multiple phases of the cannabis business planning timeline.
Charles J. Messina
Jennifer Roselle 
Daniel Pierre 
Jennifer Roselle
The last few weeks have seen quite a bit of excitement for the possibility of comprehensive federal cannabis policy reform being closer than it has ever been, but what about the states?
Aaron Rosenbluth is 
It is more important than ever to get out and vote. Our government relations team works hard in our nation’s Capital to achieve legislative victories at the federal level; however, achieving legislative victories at each state is just as important. It is through each successful ballot initiative at the state that provides the proof and support for legislative change and policy reform at the federal level. States are moving forward; therefore, we must be on Capitol Hill. We must keep fighting the good fight and get out and show our support for cannabis policy reform. 