Regardless of the four day work-week, there was a lot going on, from the Cannabis Regulatory Commission’s meeting to legislation that is slated in Congress once more for an end to federal prohibition.
The theme to this week’s coverage is a concept that may seem as old as time itself — decisions.
Decisions on how municipalities would enforce ordinances, opt-outs, decisions on third-party testing, decisions on what businesses can and cannot do.
All of these things and then some were covered at a long CRC meeting and one thing was clear: residents and business owners alike want clear guidance within the cannabis space.
We always knew that getting over the initial hurdle of local prohibition was the easy part.
Now comes arguably the most frustrating, criticized and influential part of the process.
The intersection of business concerns, want for clear guidance, ethnic and medical trauma, justice reform and economic equity were all on display at the meeting, showing once more that the business conversation around cannabis is anything but.
Those concerns and how they are addressed will essentially decide what this industry is and isn’t.
Breaking down all of those interesting intersections, we have a reporter’s roundtable that dissects the massive amount of information that was present throughout the meeting.
On the additional reportage front, Amanda Hoover delivers an article on municipal concerns and funding for certain programs that interact with medical cannabis as a treatment.
Jonathan Salant gives us the latest in D.C. on what the hopes are for Friday in Congress as an end to federal prohibition is introduced yet again through the MORE Act.
This week, I spoke to CRC chair Dianna Houenou about barriers to entry, what’s making the RFA process take so long, testing and more. Look out for the conversation ahead of our event.
Additionally we have a column from Stockton University cannabis professor Rob Mejia on what social equity will mean for the Garden State and beyond.
Also, don’t forget, we have an event next week that’s going to dive into municipalities throughout a two day period. More topics include what you need to know about your cannabis facilities and winning a microlicense.
We’re also thrilled to announce that we have Portland Cannabis Czar and Cannabis Regulators of Color Coalition chair Dasheeda Dawson returning to our event to deliver a keynote that was extremely popular with our New York audience on the future of what the cannabis space is capable of accomplishing from an equity perspective.
Until next week…
— Jelani Gibson
Amanda Hoover, Jelani Gibson and Susan K. Livio
Reporters Roundtable: Ordinances, equity and edibles take center stage at CRC meeting
Jelani Gibson: Welcome to our June reporters roundtable on the Cannabis Regulatory Commission meeting from this week. Large topics of debate included municipalities, ordinances, edibles and overall equity. So, let’s get to it. What was everyone’s initial take?
Amanda Hoover: It was another long meeting, with dozens of people testifying. These meetings have seen high engagement compared to your average public meeting. We heard a lot about towns here, and the concerns they have with the deadline to opt-in or opt-out. The commissioners seemed to take that away from the meeting. Sam Delgado mentioned the need to work closely with the League of Municipalities and one or two others talked about the way this is playing out in their own communities, and how they see concerns from towns vary across the state.
Susan Livio: As someone who covered the medicinal marijuana law from its draft stages a dozen years ago, I see signs of progress and stagnation. Three satellite dispensaries are ready — two from Curaleaf in Edgewater Park in Bordentown and one from Ascend, formerly Greenleaf, located in Fort Lee. But then I am struck by how little has changed in terms of products on the market. The only true edible is a lozenge. We have 111,000 patients and no real edible market to speak of. The frustration was palpable.
Gibson: That frustration is going to continue to be a pivotal point of criticism as the market matures. There’s currently no precedent in other legalized markets for a fully realized adult-use industry that does not offer edibles and another sticking point — homegrow, which is more on lawmakers than it is the CRC. The medical and equity concerns that were also brought up seemed to be a recurring theme. That edibles were not just a matter of adult-use products, but also a matter of more substantive medical options that a more diverse array of business owners and consumers could get into. Not having an increased edibles market does not seem like a long-term sustainable strategy.
Livio: A lot of the agita around edibles would go away if the proper labeling is applied so it’s clear what is an actual serving. Ken Wolski from the Coalition for Medical Marijuana-NJ said edibles got a bad name after some high-profile people publicized their negative experiences with overdoing it. (See Maureen Dowd). Fear continues to rule.
Gibson: Sigh. I remember that. A New York Times journalist having a meltdown over an edible. What was quite frankly amusing to the more experienced also had real ramifications. People in positions of power, including the media, have a lack of education about edibles. Another one of Wolski’s points and continued points from others was that education was a better route than prohibition, which is the overall message of the cannabis space to begin with.
Hoover: One of the overarching points on the edibles and concentrates was that limiting them won’t make New Jersey safer. Several speakers said people will either buy more of a lower potency or seek them out on the illegal market. It’s the same argument we heard for legalizing cannabis — it’s not going away just because the state bans it. I think that idea could drive home the point for expanding edible and concentrate access.
Livio: I’ll be interested to see how the commission regulates “high-potency” cannabis products. Some folks made the point that some forms of alcohol carry a higher proof. So does weed. The industry is pushing for letting the market dictate what should be sold. Dr. Mikhail Kogan, physician and associate professor at George Washington University, said what is needed is robust testing early on so people know what they are buying. I am not clear whether NJ has stepped up its game yet in testing.
Hoover: That was the other takeaway from the meeting: the CRC approved interim third party testing, using Maryland’s standards. They devoted a whole meeting to hearing comments on what state might be best for New Jersey to emulate until the commission can come up with its own standards. Maybe this will bridge the gap for now.
Gibson: In a way it was tactically smart to do that since the market can immediately benefit from third-party testing. The additional factor surrounding that is how the final policy will stack up against the Maryland policy and what is or isn’t going to be stricter. Increased testing is a matter of safety and quality, but can also form the basis for more research and customizable experiences for consumers. In my previous reporting a lot of operators were interested in that dynamic.
Livio: Zack Katzen, who sits on an advisory committee to the mayor of Atlantic City, raised an interesting proposal. He questioned why consumption lounges must be attached to a dispensary. He said AC could easily host cannabis conventions but there have to be more options for consumers. There is one operating dispensary and one proposed. He’s got a point. The law would need to change, so that’s not a quick fix. But it should give the commission something to think about. AC could really benefit from the legal weed market.
Gibson: Questioning why consumption lounges need to be attached to a dispensary is the elephant in the room that everyone feels like speaks to barriers. It also speaks to how some of the imperfections will have to be addressed by lawmakers and not the CRC since some of what they enforce is already a requirement by law.
People look at that dynamic and say ‘see, it’s more beneficial for license holders that had to go through an expensive process filled with lobbyists and lawyers.’ Let’s also be aware that New York has already indicated they’re going to do standalone lounges. People have been smoking cannabis in nightclubs and at concerts for years so this isn’t a radical concept.
It’s hard to see consumption lounges by themselves having to overcome as many regulatory hurdles as a business that actually touches the plant. It’s hard to even see how it would differ from a bar. If anything, more tame than a bar since a consumption lounge by itself wouldn’t be able to sell. In one aspect customers would benefit from a dispensary where one is allowed to consume, but saying a retail location is required, that’s where some people start distrusting the process.
Hoover: That point really shows how far apart towns are here. You have AC, which has been really receptive and excited about both medical and now adult-use cannabis, and they think this proposal would be best for their city. But then you have others that are much further behind in understanding what cannabis means for them, and they’re still rushing for the opt-out, even if it’s considered temporary.
Gibson: I think that goes back to what Sue, and other commissioners mentioned throughout the meeting when it came to fear surrounding what was and wasn’t understood about the plant. This is an activity that’s been demonized for so long. Similar to the War on Drugs/People, it’s going to take a while for the effects of that to subside throughout society.
Livio: The commission has to get a jump on microlicenses. Lots of people clamoring for information about them. What do we know about where they sit?
Hoover: We only know what’s in the law for now. But this is the topic I get the most questions on. If the CRC does not prioritize and support these types of entrepreneurs, there will surely be criticism.
Livio: Eric Jiang, the engineer who said he “sacrificed everything” to break into the CBD business and is working toward getting a microlicense, made an interesting point about the law’s strict requirements that 51% percent of employees must reside in the town. He suggested more flexibility, like pulling from a 10-mile radius. Sounds reasonable. But Jeff Brown pointed out that this is a statutory requirement. So there would have to be a separate piece of legislation. I think we will see lots of examples of the law being too prescriptive, however well-intended.
Gibson: Microlicenses were essentially made as a reaction to the criticism and fear that the cannabis market would be dominated by multistate operators, which is a critique that already exists in other legalized states and will more than likely be a fear in other states that navigate legalization at the intersection of economic justice. Also, those licenses are the key to creating what could be the equivalent of a craft cannabis industry in New Jersey. A lot of the politics are local, but so too are the small business ramifications. How the barriers to entry end up interacting with a lot of those applicants can make or break the process.
Hoover: Well, we only have two more CRC meetings before we hit that Aug. 21 deadline for rules and regulations to come. It will be interesting to see what else we get insight on before then.
Gibson: Indeed it will. The industry is constantly changing. To our audience, until next time.
(Illustration by Canva)
N.J. towns face tight deadline on banning weed, tell commission they need more details
The Cannabis Regulatory Commission held its fourth meeting this week and made a point to listen to local concerns as municipalities face a tight deadline to pass ordinances on cannabis businesses.
Dozens testified, and many shared municipal concerns — like zoning, traffic and local control — while others spoke about regulating certain cannabis products like concentrates and edibles.
Municipalities have until Aug. 21 to opt-in or out of allowing cannabis businesses. But the Aug. 21 deadline collides with another the CRC faces to unveil its rules and regulations governing the cannabis industry. That will likely force municipalities to make their choice before they can review the full regulations.
“We are facing a lot of challenges with this deadline,” said Steven Pardalis, who is part of a group advising Bloomingdale on how to handle cannabis. “We have very little understanding of what our next steps are supposed to be.”
He said the small North Jersey town is open to sales, but without more information may move to ban cannabis businesses and change its ordinance later. Bloomingdale is not alone — many towns have already opted out cautiously, fearing dispensaries will change the character of their town.
“We have to refrain from this lingering stigma of 80 years, this fear-based messaging,” said Krista Nash, one of the commissioners. “Erasing a stigma that has been perpetuated for many years is extremely difficult. But it’s not impossible.”
Janice Kovach, mayor of Clinton and president of the League of Municipalities, said cities and towns have concerns about increased traffic when dispensaries open and asked the CRC to give municipalities control over certain zoning issues and ways to discipline bad actors.
“A one size fits all approach will not work,” she said, noting each city or town will have its own concerns.
She also urged the CRC to ban cannabis gifting by unlicensed, commercial companies. These have popped up around the state this year, where companies sell cookies or snacks and then gift the buyer with weed.
Chuck Latini, president of the New Jersey chapter of the American Planning Association and associate director of the Cannabis Advisory Group, said the CRC should remain “instructive rather than proscriptive” in dealing with municipalities, and recommended it develop a list of things towns should consider as they zone cannabis.
Charles Gormally, co-chair of the cannabis law practice at Brach Eichler, said many bans come from towns where there’s a lack of understanding about cannabis. He encouraged the CRC to regulate and zone cannabis like alcohol businesses.
“Don’t penalize cannabis businesses from a zoning and regulatory standpoint,” he said. “Do not feed your regulatory authority to municipalities.”
Several of the commissioners recognized the varying needs of towns and the lack of education so far, saying their own communities were asking the similar questions to those raised at the meeting.
“I think it’s going to be important that we listen more and partner with the League of Municipalities to move forward,” Sam Delgado, vice chair of the CRC, said at the meeting’s close.
The CRC voted to approve three new medical marijuana dispensaries that will be run by currently licensed companies. They are Ascend Wellness in Fort Lee and Curaleaf dispensaries in Edgewater Park and Bordentown. Another satellite dispensary, Zen Leaf Lawrence, will open on Friday.
There’s still no word on when the CRC will announce the awardees of two dozen new medical marijuana licenses. More than 150 people and companies applied to grow, process or sell marijuana in 2019, but a lawsuit shutdown the review of the applications for more than a year.
Dianna Houenou, chair of the CRC, said Tuesday the group “is working diligently and as quickly as it can to finish the scoring for those applications,” but gave no timeline for the awards.
The CRC’s next meeting is scheduled for July 13.
— Amanda Hoover | NJ.com
NJ Cannabis Insider June conference: Focus on Municipalities
Our June 8-9 conference, presented by Hance Construction, takes place roughly one week after the Cannabis Regulatory Commission holds a meeting in which leaders from municipalities will get to voice what they want to see in local regulations.
“The best thing you could do is reach out to the local elected official,” said Clinton Township Mayor Janice Kovach, who is president of the New Jersey State League of Municipalities. “Go through the municipal building — you get to the mayor, you get to the council president. The important thing is making sure you’re reaching out and gauging where they’re at before you start doing a whole process.”
While legalization legislation has laid out some of the basic foundations for establishing the industry, a lot of what it will actually entail will be driven by the municipalities.
The dynamic also comes at a time when the state’s current cultivators are stretched thin with current medical cannabis demand.
Additional cultivation of cannabis has been pushed forward as well, an activity that will likely take the largest footprint in the more rural and suburban parts of New Jersey due to more land availability — but some of those municipalities may be hesitant to invite the industry into their local economies.
Under the current legislation, municipalities have until an August deadline to ban or set limits on the types of cannabis businesses they would like to allow.
Which municipalities decide to enact ordinances that restrict, ban or welcome cannabis businesses can have an effect on how the industry will grow as a whole.
Kovach will be among the featured speakers at the virtual June conference. Other confirmed speakers include:
- Dasheeda Dawson, cannabis czar for the City of Portland, Oregon, founder & chair of Cannabis Regulators of Color Coalition, chief strategist for CHEM, and best-selling author.
- Edmund DeVeaux, president of the New Jersey CannaBusiness Assn. and is a lobbyist with Burton Trent Public Affairs.
- Janice Kovach, Clinton Township mayor and president of the New Jersey State League of Municipalities.
- Arthur Hance, founder and president of Hance Construction, Inc. which provides material erected, turnkey construction management and general contracting services to the industrial, commercial and cannabis markets in New Jersey, New York and Pennsylvania.
- George Irwin, founder and president of Green Living Technologies International, LLC (GLTI) and GLTCannabis (NJ), Irwin is recognized around the globe as the leading authority of agriculture technology. For two decades, Irwin has pioneered technology in the design and manufacture of green roofs, green walls and vertical farms.
- Alixon Collazos, a public affairs specialist working with The BGill Group, a full service public affairs, political consulting and digital media firm. She recently worked with GTI-NJ to open Rise Paramus. She is also executive board member at the New Jersey Hispanic Research and Information Center.
- David Serrano, a decorated U.S. Navy veteran, a pioneer in the cannabis industry, and a fierce advocate for social and environmental justice. He is the founder and chief of Business Development at Harvest 360 and H360 Labs.
- Dwayne D. Warren, mayor of the City of Orange and chair of the Committee on Cannabis at the New Jersey Urban Mayors Association (NJUMA), where he is also vice president.
- Colleen O’Hara, the Northeast key account manager for Signify, formerly Philips Lighting
- Heather Kumer, an attorney at Vicente Sederberg, Kumer is an LEED-accredited professional in Building Design and Construction.
- Hugh Giordano, a union representative and organizer for UFCW Local 152.
- Jennifer Roselle, an attorney at Genova Burns LLC, where she is part of the Cannabis Law Group.
- Connie Bertussi, executive vice president of Human Resources at Justice Cannabis Co. (formerly known as Justice Grown), a multi-state operator, including licenses in New Jersey and Pennsylvania
- Chirali Patel, an attorney at Pashman Stein Walder Hayden, founder of Blaze Responsibly and an executive board member of the Cannabis Law Committee New Jersey State Bar Association.
- Jessica Gonzalez, a cannabis and intellectual property attorney at Bressler Amery & Ross, as well as outside general counsel for Minorities for Medical Marijuana, Inc. Gonzalez also sits on the Policy Committee for the Minority Cannabis Business Association and the is the Social Equity CLE co-chair for the International Cannabis Bar Association.
The program will also include recorded remarks about regulations and municipalities from an executive of the Cannabis Regulatory Commission. At least 60 minutes of focused networking sessions are built in each day. The virtual networking “floor” will consist of roundtables, hosted by sponsors and partners.
- Hance Construction was selected to build one of the first cannabis grow facilities in New Jersey, and has since worked on other medical cannabis projects, offering consulting and site-location services.
- Supreme Security Alarms, New Jersey leaders in the security space, providing custom designed, state-of-art systems to protect your business.
- Green Living Technologies International, founded in South Jersey with offices around the country, GLTI is global leader in environmentally-controlled indoor vertical farming. GLTCannabis has utilized its patented Vertical Cultivation System technology to revolutionize the cannabis and hemp industries, with organic cannabis production that yields up to 10 times the traditional bench techniques, higher CBD /THC profiles and dense terpene profiles.
- Harvest 360 is a cannabis consulting company that specializes in application preparation and licensing management, working to reduce barriers of entry for communities most impacted by the War on Drugs.
- New Jersey Cannabis Trade Association represents the permitted operators in New Jersey’s Medicinal Marijuana Program. NJCTA was formed to protect affordable access to medicinal marijuana for New Jersey’s roughly 100,000 registered patients during and after the state’s transition to an adult-use market. NJCTA is our social equity partner for this event.
- The BGill Group, a government affairs, public relations and digital communications firm that has been front and center on the development of the Garden State’s effort to expand and improve the existent medical cannabis program while supporting a sensible, just and highly regulated adult use marijuana.
- Weedmaps, a leading technology and software infrastructure provider to the cannabis industry, is an online marketplace to discover and explore products and brands, and to find dispensaries and doctors.
- Signify, formerly Philips Lighting, offers grow lights to help medicinal cannabis and hemp growers improve production speed and quality, and manage energy costs and grow climates. With 130 years of lighting experience, growers around the world are using Philips brand lighting with medicinal cannabis and hemp crops, as well as greenhouse food, lettuce and leafy greens, and ornamental crops.
- Vicente Sederberg, a national cannabis law firm providing legal and policy services to marijuana and hemp companies, ancillary businesses, investors, governmental bodies, and advocacy organizations.
- Genova Burns, through its Cannabis Law group represents clients in the cannabis, hemp and CBD industries from the earliest stages of development. The firm is uniquely qualified to advise investors, cultivators, processors, distributors, retailers and ancillary businesses.
- Stockton University, the interdisciplinary minor in Cannabis Studies offers students a foundation for understanding the burgeoning cannabis industry.
- New Jersey’s Clean Energy Program, a state agency offering financial incentives, programs, and services for New Jersey residents, business owners, and local governments to help them save energy, money, and the environment. Integrate energy efficient, new technology into your buildings and equipment upgrades, make your facilities more efficient and receive big dividends on efficiency investments.
Our social equity partner for June is the New Jersey Cannabis Trade Association, who is sponsoring tickets for 20 qualified social equity applicants as well as producing a series of educational virtual events around essential topics, such as choosing the right location, dispensary, cultivation and manufacturing plans, regulatory compliance and more.
NJ Cannabis Insider members should use early-bird discount code NJCI0608 to register.
— Enrique Lavin
Photo by Michael Mancuso | For NJ Cannabis Insider
New N.J. bill aims to reduce cost for medical cannabis
Lawmakers are working on a new bill that would ease costs of medical cannabis to New Jerseyans enrolled in certain financial assistance programs.
The bill, introduced last month, would require the following funds to cover medical cannabis costs:
- Catastrophic Illness in Children Relief Fund
- Pharmaceutical Assistance to the Aged and Disabled (PAAD) program
- Senior Gold Prescription Discount Program
- Victims of Crime Compensation Office (VCCO)
Each would have to assist with cannabis costs but not cover them entirely. The PAAD and senior programs would reimburse dispensaries for medical costs after a person has paid a copay or hit an out-of-pocket max.
It also makes medical cannabis a cost eligible for compensation as a crime victim.
The CRC and Human Services could set a limit on the amount of cannabis eligible for the benefits each 30 days under the bill.
The Assembly Health Committee cleared the bill Wednesday morning, sending it to the Assembly Appropriations Committee next.
Assemblyman Herb Conaway, who sponsored the bill, said it would extend the benefits of cannabis to those struggling financially. He also said all of the programs are state-run, so reimbursing cannabis costs will not conflict with federal law.
“These programs service those who are often, at least, somewhat financially distressed,” he said during the committee hearing. “The goal is to ensure that the benefits of medical cannabis are available to all who may need it.”
Another bill that would require personal injury protection and workers compensation insurances to cover medical marijuana has moved through the Assembly, but stalled in the Senate.
The New Jersey Supreme Court ruled in April that medical cannabis is eligible for workers’ comp costs.
— Amanda Hoover | NJ.com
(NJ Cannabis Insider file photo)
NJCBA forms group to outline hemp regulations
The New Jersey CannaBusiness Association (NJCBA) is forming a task force known as the Hemp Working Group, which aims to creates additional policies for hemp that can work in conjunction with the cannabis industry.
Some of the group’s proposed ideas include reducing production costs for licensed cannabis processors and patients in New Jersey, improving access to CBD products and coordinating policy shift with the New Jersey Department of Agriculture and the CRC.
“The Hemp Working Group is, to our knowledge, the only organized effort to ensure that the hemp industry is not lost in the development of cannabis regulation,” said NJCBA President Edmund DeVeaux. “The cannabis industry is rapidly expanding in New Jersey, and we must ensure that all aspects are thoroughly examined and thought and through. The potential with hemp is limitless, if properly planned out moving forward.”
The NJCBA’s Hemp Working Group is comprised of Faye Coleman, CEO of Pure Genesis; Brett Goldman, Partner at OCan Group, LLC; and Eric Axelson, owner of Garden State Harvest.
“While the discussion in New Jersey has centered largely around cannabis, and understandably so, we cannot ignore the many positive benefits hemp brings to our state,” Coleman said. “We hope to work with the CRC (Cannabis Regulatory Commission) and the industry in general to create the country’s greatest, most thriving hemp market right here in New Jersey.”
“There are experiences and best practices from other states that we can learn from,” Goldman said. “Taking the best ideas and learning from other’s mistakes, we have enormous potential to make New Jersey a leader in this area. The opportunity is there, now we just have to seize it.”
“We applaud the CRC for their willingness to meet with and listen to the ideas of others. By working together and using everyone’s collective experiences in the market, we can make the hemp industry in New Jersey a shining example for the rest of the country,” Axelson said.
Minority Cannabis Business Association launches scholarship
The Cannabis Conference (produced by Cannabis Business Times, Cannabis Dispensary and Hemp Grower media brands) and Hemp Grower Conference (produced by Hemp Grower) announced a joint partnership with Minority Cannabis Business Association (MCBA) to help minority cannabis entrepreneurs access networking and education opportunities to grow and support their business.
The inaugural Cannabis Conference/Hemp Grower Conference Diversity Scholarship will provide selected MCBA members with 20 complimentary Cannabis Conference 2021 All-Access passes, and 10 complimentary Hemp Grower Conference 2021 All-Access passes.
A 20% registration discount to all MCBA members is also being offered.
The media brands will provide more than $50,000 in annual print and digital MCBA-related promotions to support minority cannabis entrepreneurs and their communities.
“Minorities, who have been historically disproportionally affected by the War on Drugs, also face barriers to entry within the legal cannabis market because of a lack of access to capital and quality networking opportunities,” Cannabis Conference/Hemp Grower Conference Editorial Director Noelle Skodzinski said. “Through our valued partnership with the Minority Cannabis Business Association, the Diversity Scholarship offers no- cost access to our conferences for scholarship recipients to help provide those in-depth educational and network-building opportunities.”
“The partnership also will help promote the MCBA and the essential work it does on behalf of its members to promote equality and diversity in the cannabis industry—by working toward fair policies and regulations, and the empowerment of minorities and women through educational and networking opportunities and other resources,” Cannabis Conference/Hemp Grower Conference Publisher Jim Gilbride said.
“We are grateful to have the Cannabis Business Times, Cannabis Dispensary, and Hemp Grower brands as partners in building an equitable cannabis industry. The partnership will provide access to a caliber of networking and educational events that are essential, but often inaccessible, to small minority cannabis businesses. Their support of MCBA will help us grow to better reach and serve our community,” MCBA Executive Director Amber Littlejohn said.
Diversity Scholarship applications will open on June 1. (Diversity Scholarship passes will be allocated at the discretion of MCBA. More information as it becomes available can be found at minoritycannabis.org.)
— NJ Cannabis Insider Staff
Effectively defining who a ‘social equity applicant’ is crucial
By Rob Mejia, president of Our Community Harvest, a minority-owned cannabis education company, is author of “The Essential Cannabis Book: A Field Guide for the Curious” and “The Essential Cannabis Journal: Notes from the Field.” An adjunct professor at Stockton University, where he teaches the Introduction to Medical Cannabis and Preparation for Cannabis Internship courses, he is creating a Social Justice and Cannabis course. Mejia will be a featured speaker at NJ Cannabis Insider’s June 8-9 conference.
As more states move to legalize adult-use cannabis, concerns about how to create an equitable, inclusive industry with social justice provisions at the forefront have become more common. By looking at cannabis social justice efforts from states such as Washington, Massachusetts, California, Illinois, and New Jersey several common themes and concerns emerge.
First, although Washington was one of the first states to allow for legal adult-use, social equity was not included in the initial legislation, which makes implementation of any social equity program more difficult. However, in March 2020 Gov. Jay Inslee signed HB 2870 which “creates a new social equity program that provides business opportunities to people from disproportionately-harmed communities so they can benefit economically from the cannabis industry and become a cannabis retailer.”
The Washington State Liquor and Cannabis Board is responsible for adopting guidelines and implementing social equity legislation. So far, they have held two public meetings and recommendations are expected to be announced in 2021. They will also distribute 34 “unused or forfeited licenses” to social equity candidates. At the second meeting, it was agreed that the commission would focus on anti-Black racism by creating data-driven policy and would also carve out space for the queer community. To implement their recommendations, one robust tool at their disposal is a social equity technical assistance competitive grant program which helps applicants manage the application process.
At the heart of all cannabis industry social justice efforts is the need to effectively define who a “social equity applicant” is. Washington state defines a “social equity applicant” as:
● An applicant who has at least 51% ownership and control by one or more individuals who have resided for at least 5 of the preceding 10 years in a disproportionately impacted area; or
● An applicant who has at least 51% ownership and control by at least one individual who has been convicted of a marijuana offense or is a family member of the offender.
Second, a “disproportionately impacted area” means:
● The area has a high poverty and unemployment rate and a high level of participation in income-based federal or state programs; and
● The area has a high rate of arrest, conviction, and incarceration related to the sale, possession, use, cultivation, manufacture, or transportation of marijuana.
However a program is implemented, some common goals which emerge are:
● Priority consideration of licenses for social equity candidates- and reduced fees
● Access to financing
● Mentorship and ongoing support to handle issues such as application completion guidance, zoning information, legal advice, construction assistance, and accounting input
● Cultivation, processing, product testing, and dispensary operations training- all enhanced by cannabis education
Here are some ways that California, Massachusetts, Illinois, and New Jersey are approaching social justice in their respective states:
California is offering grants, such as a $30-million grant available to communities who were adversely affected by the War on Drugs. The state is also offering reduced license fees, workforce training, emergency preparedness planning, and low, or no interest loans.
Massachusetts has set aside social equity licenses for those who come from areas harmed by the War on Drugs or those who have a child or spouse who has had multiple cannabis convictions. They are also setting aside delivery and social consumption lounge licenses for social equity applicants for three years.
Illinois has one of the more robust social equity programs. Automatic, no-fee, cannabis conviction expungement is a centerpiece of their program. Illinois also has some aggressive “set asides” which means that they are reserving 75 licenses for social equity applicants, and 25% of all cannabis revenue received by the state will go to disenfranchised communities. The state is also offering low-interest cannabis business loans.
In New Jersey, legislation passed a few months ago to allow for legal adult-use and two major measures are intended to help social equity applicants. First, 70% of cannabis revenues will go to communities that were unfairly harmed by the War on Drugs, though this funding will probably be subject to yearly approval.
Second, there is no cap on micro-licenses, which are easier and less expensive to obtain. Investment that is going to targeted communities is likely to be used for low-cost loans, education and job training, community partnerships, and business mentorship. Note that these provisions will be spelled out by the New Jersey Cannabis Regulatory Commission by Aug. 21 at the latest.
While there are many ways to help social equity applicants obtain a place in the cannabis industry, it is better if social equity is a crucial consideration at the outset of the creation of legislation as it is more difficult to add details later. As more and more states institute and try programs, we are learning what works and what is lacking. However, it is essential that we are taking these important first steps.
The U.S. Capitol Building (Associated Press file photo by Patrick Semansky)
Advocates welcome the reintroduction of the MORE Act
Proponents of legalizing cannabis readily supported last week’s reintroduction of legislation to end the federal ban and help minority communities, which were hardest hit by the War on Drugs.
The Marijuana Opportunity Reinvestment and Expungement Act, or MORE Act, initially passed the House in December, a reflection of the growing support for legal weed. The House action came after New Jersey and three other states voted to legalize cannabis for personal use a month before.
“It’s clear that Americans overwhelmingly support ending cannabis prohibition,” said Steve Hawkins, the Marijuana Policy Project executive director.
“Reintroducing the MORE Act is a powerful way to reorient negotiations around legalization that gives our entire nation the power to choose cannabis for medical and adult use, strengthens a blossoming industry that is creating jobs and fueling economic growth, and begins to rectify the harms of the racially motivated war on cannabis and its disproportionate impact on vulnerable communities through criminal justice reform and social equity initiatives,” Hawkins said.
While the bill never came up for a vote in the Senate last year, the current Majority Leader, Chuck Schumer of New York, and two other Senate Democrats, Cory Booker and Ron Wyden of Oregon, have said they would propose their own legislation that covers the same ground as the MORE Act.
“We urge Congress to act on the unprecedented political opportunity – the time for full legalization, complete with critical and comprehensive social justice reform, is now,” said David Culver, vice president of global government relations at Canopy Growth.
“Canopy Growth looks forward to working with both sides of the aisle in Congress to ensure the successful passage of both the MORE Act, and the highly-anticipated comprehensive cannabis reform bill being crafted by Sens. Cory Booker, Ron Wyden, and Majority Leader Chuck Schumer,” Culver said.
The MORE Act’s social justice provisions ran into Republican resistance in the House last December, and could do so again this time around, said Morgan Fox, a spokesman for the National Cannabis Industry Association.
While some Republicans may oppose removing marijuana from the list of controlled substances, they are “even more hung up on social equity and restorative justice provisions, which are key to undoing the harms caused by prohibition and pretty much a dealbreaker for Democrats and advocates,” Fox said.
— Jonathan Salant | NJ.com
(NJ Cannabis Insider file photo)
NJ Cannabis Insider to serve as panelists for NJCBA lunch and learn
We do our fair share of panels but we also speak as well! NJ Cannabis Insider staff, Kristen and Enrique will be at a NJCBA event tomorrow from noon-12:45 p.m. to talk about cannabis media and also give a behind-the-scenes look at which in-person venues we’re scouting out for our future events as we transition to a hybrid model.
New Jersey cannabis virtual roundtable
The NJCVRT is organizing an event June 4 from 4-8 p.m. to focus on event production for patient care, health and wellness, business development and equity. Improving access to medical cannabis certifications, modifying health outcomes, incubating businesses and ensuring that there is a level playing field for the future cannabis industry will all be primary topics of focus.
There will be breakout rooms devoted to each topic. The event is run by Dr. Monique Hamilton, a board-certified internal medicine physician with clinical experience in chronic conditions who has certified patients in the New Jersey Medical Marijuana program.
The coalition aims to bring together public officials, medical practitioners, entrepreneurs and clergy that align with the stated Cannabis Regulatory Commission initiatives. The event is free. Click this link to register.
— NJ Cannabis Insider staff
Have PowerPlayer news? Send the press release to tips@njcannabisinsider.biz. No attachments, please.
Do you know a town that should be included? Send us a note at tips@njcannabisinsider.biz
To access the archives for issues 0-152, use this passcode: more-njci