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Massachusetts Marijuana Regulator Talks Social Equity And The Presidential Election

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As more states enter the growing landscape of legal marijuana, jurisdictions are taking on the responsibility of addressing social justice and equity for communities targeted by the drug war in their legislation earlier in the process instead of trying to address the issue later, as has been the case in many states that have ended cannabis prohibition to date.

For Shaleen Title, the sea change is timely and welcome.

In September 2017, the drug policy activist and attorney became one of five members of the Massachusetts Cannabis Control Commission after her appointment by the state’s governor, treasurer and attorney general. The body is tasked with overseeing the commonwealth’s marijuana legislation, and Title helped draft its mandate to include individuals from communities disproportionately harmed by prohibition in the legal industry. The Commission is also charged with reducing barriers to entry for people of color, women and veterans.

Since legalization went into effect, the commission voted to initially limit social consumption licenses exclusively for equity program participants and craft cooperatives, and discussed allowing only microbusinesses to deliver directly to consumers. Title and her fellow commissioners will consider these types of licenses this spring.

But Massachusetts isn’t alone in looking for ways to make the marijuana industry more equitable.

Rhode Island lawmakers recently filed a bill titled the Cannabis Equity Act of 2019 that calls on the Ocean State “to ensure that persons most harmed by cannabis criminalization and poverty” receive the necessary assistance to become entrepreneurs and employees in the industry. Meanwhile, black lawmakers in New York are threatening to block legalization efforts until assurances are made that communities of color will benefit from the multi-billion dollar industry.

Massachusetts’s Social Equity Program is accepting applications for participants, and vendors are invited to submit their bids to offer equity program applicants training, mentorship and technical assistance through April 5. Despite swift progress over the last year, just ten retail stores have opened in Massachusetts so far, and reporting from the Commission’s own data shows that few black- and Latinx-owned businesses have submitted completed applications for cannabis licenses.

To learn more about the Commonwealth’s progress to date, Marijuana Moment spoke to Commissioner Title via email and asked about what she and fellow regulators are doing to further reduce barriers to entry for underrepresented communities. She also addressed how cannabis social equity has become a major policy issue in the 2020 presidential election.

This interview has been lightly edited for clarity and length.

(Full disclosure: Title and Marijuana Moment’s publisher co-founded the nonprofit organization Marijuana Majority in 2012 and have worked together on various drug policy reform efforts.)

Marijuana Moment: Massachusetts’ cannabis equity program is officially live. How is it going so far?

Shaleen Title: While it’s very early, it’s an important time to remember the vision that the people of Massachusetts put forth through the legalization ballot question and legislation. Our mandates to include businesses of all sizes, farmers, craft cooperatives, people of color, women, veterans and disproportionately harmed communities paint a vivid picture of an industry defined by meaningful participation. We are fostering a market where people from all different backgrounds provide all types of experiences for consumers in a regulated, consistent environment.

Like everyone who feels strongly about the underlying goals of the program—reducing barriers to entry, providing professional and technical services for those facing systemic barriers, and promoting reparative practices in the cannabis industry—I am often frustrated, because it never feels like it’s moving fast enough. But I remind myself that at this early phase, even a 5 percent shift in the right direction will compound into a massive impact as the industry grows.

MM: The Commission voted to initially limit social consumption licenses to social equity program participants and craft cooperatives, and delivery to those groups as well as microbusinesses. They also formed a working group where local officials will collaborate with commissioners on the framework for a social consumption pilot program. What other wins can you tell us about?

ST: As we moved closer to those discussions this spring, I was pleasantly surprised to see a majority of the Cannabis Advisory Board members vote to allow those licenses, including temporary event licenses, and to exclusively offer them to certain disadvantaged groups and small businesses. From the perspective that these types of businesses are necessary—both as lower-capital entrepreneurship opportunities, and to allow marijuana consumers to go about their lives as law-abiding members of society—this feels like a win. More than half of the advisory board members are appointed by the governor, attorney general and treasurer, so to me these policy recommendations represent how far the conversation about legal marijuana businesses has come over the past year.

MM: As a reflection of the Commission’s data, it has been reported that next to no black or Latinx candidates have applied. Why do you think that is?

ST: To be clear, those numbers are reported directly by the Commission at every meeting. It’s important to us that we collect industry statistics to hold ourselves accountable and that we make them easily accessible. I’ve been heartened to see that the public thinks this is as important as we do.

At this point, the Commission has approved provisional licenses for two self-reported minority-owned businesses. I note “self-reported” because it’s important for us to collect data on businesses that have been audited by the state as being owned and controlled by the people who say they own the company.

As I see it, the reason why we haven’t received enough completed applications from the groups we are trying to reach is a chicken-and-egg problem. Our licensing process asks whether an applicant is capable of running a business: do you have a location, capital, a host community agreement? If you can demonstrate that you do, you receive a provisional license. But landlords, investors and municipalities want to know if you have a license before they will give you those things. We have taken several intentional steps to make our licensing process more accessible than most, including very low fees, fee waivers for certain groups, no numerical capital requirement and no exclusions for cannabis offenses unless they involved distribution to a minor. But the process still tends to favor those who can procure locations, local approval and capital through existing resources and privilege.

We are planning to conduct a robust study on participation in the industry and barriers to entry, both because Massachusetts law requires us to and because it’s not enough to point to obvious barriers. When a process requires an unreasonably high amount of capital, whether intentional or not, it sets you up to fail, and regulations can change that. For example, potentially a local cannabis chef could receive technical assistance to create a business plan, rent a shared commercial kitchen space just for equity applicants, develop craft edible products and then deliver them straight to consumers as part of the microbusiness delivery pilot program. If they have agreed to hire people with drug convictions, are of Black or Latino descent and otherwise have qualified for economic empowerment priority, they could go straight to the front of the line for review and licensing. Those kinds of approaches are more direct than having each qualified applicant try to raise millions of dollars.

MM: What is the Commission considering as additional ways to reduce barriers to entry into the industry for underrepresented people?

ST: We recently approved our first license to a general applicant (not a medical dispensary or economic empowerment applicant), and it was a business owned by a woman. She didn’t have any special priority; she just managed to get through the process first. To me, that’s a sign we are well on our way to creating an accessible pathway. In a recent letter to my fellow commissioners, I compared our equity program to helping people cross a bridge as we build it, and asked to have a discussion on just this topic. Everyone came through, and during our last two public meetings we came up with a great list of ideas to explore, in addition to the programs we already offer. These ideas run the range from short-term to long-term, and administrative to visionary.

All of them are potentially useful tools to reduce barriers to entry into the industry:

—Issue formal recommendations to the legislature addressing the creation of grant programs or interest-free loan programs for equity program participants.

—Address the barriers to entry posed by having to secure real estate, facility design and local approval processes by creating regulations that allow shared-use cultivation and manufacturing space for certain groups of applicants or licensees. And to also explore community trusts and other models for affordable commercial space that enable small businesses to share space and costs.

—Create a single-packet or abbreviated application process for certain groups that takes place before the local approval process, specifically before the negotiation of a host community agreement.

—Consider requiring retailers to source a certain percentage of products from equity program participants, microbusinesses or craft co-ops.

—Provide more detailed information and data about compliance on the Commission website, with the goal of minimizing the need for applicants to hire consultants to interpret regulations and requirements.

The next step is for our staff to report back to the commission on the feasibility and suggested next steps for each idea.

MM: This spring the Cannabis Control Commission is expected to develop draft rules for social consumption and home delivery licenses, and final rules are expected in June. What else is coming down the pipeline?

ST: There is no guarantee that social consumption and home delivery will be approved by the Commission, but here is the timeline for discussion, which takes place in public:

Listening sessions in March, draft regulations presented to the public in April/May, public comment period and public hearings in May and final regulations filed in June.

MM: With legalization underway in Massachusetts, citizens may feel their work is done. What support does the Commission need from the public?

ST: The most important and impactful thing that Massachusetts citizens can do, by far, is to use your voice to call for your vision of what the cannabis industry should look like locally. Being a knowledgeable citizen is one area where there are minimal barriers to entry. If you carefully read and remember the CCC’s general municipal guidance and local equity guidance (as well as the Minority Cannabis Business Association’s model ordinance), you’ll know consultants charge who charge as much as $100/hour. A lot of people who are listed on the “Women of Weed” and “Cannabis Rockstars” type lists got their start just by paying attention and showing up consistently. This is such a new and rapidly changing environment that people who are able to keep up to date on the latest developments quickly become trusted as resources and experts.

I encourage you to be bold and visionary. Really think about how the cannabis marketplace can be part of your existing local culture. It doesn’t have to look exactly like alcohol, nor should it. Government officials can be so focused on the mental checklist in front of us—security, signage, traffic, packaging—that we can forget to have vision until constituents bring it up to us.

MM: With states like Rhode Island starting to introduce their own cannabis equity legislation, what influence, if any, do you think Massachusetts is having on other jurisdictions around the country?

ST: It’s been fascinating to watch the process unfold in other states. I see strong coalitions holding a firm position that legalization will not move forward unless it puts communities of color first. That’s wonderful to see, and my message for those coalitions is to keep each other’s contact information! You will need to come back together over and over and over, especially after the legislation passes and the most complex work starts.

I don’t think it’s clear to leaders in any state what precisely is meant by putting communities of color first. The consistent themes are automatic expungement, tax revenues reinvested into disproportionately harmed communities and economic justice through prioritized ownership and employment, but no state has provided a functioning model for this yet.  That’s where I think Massachusetts’s role comes in (along with California), and why we can be almost obsessive about collecting and transparently releasing detailed data.

I noted at a previous meeting that when Rep. [Alexandria] Ocasio-Cortez asked about racial justice in cannabis business licensing at the first-ever Congressional banking hearing on cannabis she began by sharing Massachusetts data and noting that the industry does not seem representative of the groups that have borne the greatest brunt of injustice, and in fact may be compounding the racial wealth gap. As a solution, she asked about prioritizing the front-line and most impacted communities for licenses, which of course is the Massachusetts model that I believe our data shows needs to be supplemented. It seems to me like the national dialogue is stalled waiting on the first states to collect data showing a model that works. It’s more pressure and urgency to take this effort seriously, because the impacts will be felt far beyond Massachusetts.

MM: Between Rep. Barbara Lee’s recent filing of three pieces of cannabis social justice legislation in Congress, Sen. Cory Booker’s reintroduction of the Marijuana Justice Act, and your own tweet acknowledging Booker’s having done more for cannabis social justice than any other 2020 candidate, what are your thoughts on how equity is becoming part of the bigger conversation surrounding the presidential election?

ST: We’ve come a long way from when candidates like President Barack Obama and Senator Kamala Harris merely laughed when asked about legalization! This campaign season is unique in the way it’s bringing issues of equality and justice to the forefront. Legalization itself is a given, as all the 2020 presidential candidates already support it. The more interesting question is, what type of legalization do they support? While your average voter may not immediately understand how legalization and economic justice are tied together, in my experience most people agree that they want policies that avoid creating “Big Marijuana.”

In line with many of the other issues the candidates are being forced to consider in a serious way, I think a packed primary is a perfect opportunity to ask how each candidate will use legalization to reinvest into communities harmed by the war on drugs. Certainly the conversation around cannabis and equity is not happening in a vacuum, and it shouldn’t. The way a candidate looks at legalization is a representation of whether they stand for people or profits.

MM: Finally, the Boston Globe recently reported on a Commission investigation into whether large marijuana companies are flouting the state’s ownership limitation rules by effectively controlling more licenses than they are allowed. What can you say about the status of that inquiry and more generally about efforts to make sure a few so-called “Big Marijuana” players don’t end up controlling the entire market?

ST: The Commission has been concerned about multistate operators’ attempts to bypass the Commission’s regulations and obtain more than three licenses. I fully trust our staff and their ability to ensure that all applicants comply with the law and the Commission’s regulations. I can tell you that we do not tolerate marijuana operators that attempt to undermine the legal industry in Massachusetts, including the limits on ownership and control. As we continue to implement the law, we will enforce our regulations and strengthen protections against anyone who tries to dominate the market illegally or exploit small players.

Model Legislation Aims To Help Cities Bring People Of Color Into Marijuana Industry

Marijuana Moment is made possible with support from readers. If you rely on our cannabis advocacy journalism to stay informed, please consider a monthly Patreon pledge.

Kaisha-Dyan McMillan is an Oakland-based freelance copywriter and journalist specializing in the cannabis industry. Her work has also appeared in DOPE Magazine, Weedguide.com and Oakland Magazine.

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Lindsey Graham Challenger Jaime Harrison Backs Legalizing Marijuana

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The Democrat mounting a well-funded bid to oust Senate Judiciary Committee Chairman Lindsey Graham (R-SC) says he supports legalizing marijuana.

“I think we should legalize, regulate and tax marijuana like we do alcohol and tobacco,” Jaime Harrison argued this week. “There is simply no medical reason to lock people up over this issue. In essence, this is about common sense.”

The former South Carolina Democratic Party chairman said that the issue is also a matter of criminal justice reform.

“We know that marijuana arrests, including those for simple possession, account for a large number of drug arrests. The racial disparities in marijuana enforcement—black men and white men smoke marijuana the same rates, but black men are much more likely to be arrested for marijuana possession—is just unacceptable,” he said in an interview with CNBC. “Across the country, we are finding that states are legalizing marijuana and medical marijuana, and it’s just time for South Carolina to lead on this issue.”

Federal campaign finance disclosures filed on Wednesday show that Harrison, who also served as an aide to Rep. Jim Clyburn (D-SC) and a lobbyist with the Podesta Group, outraised Graham for the second quarter in a row.

The state Democratic party, on Harrison’s last day in office as chair in 2017, approved a resolution endorsing a pending medical cannabis bill in the South Carolina legislature.

“Caregivers and patients are searching for treatment options for unmet medical needs, particularly for epilepsy, Alzheimer’s disease, cancers, and the effects of chemotherapy,” the measure said. “The cannabis plant in various forms including oils, creams, drops and liquids has shown some promise in treating these medical conditions.”

A South Carolina Senate committee advanced a medical marijuana bill last year but it never ended up advancing to a floor vote.

In 2018, the state’s Democratic primary voters approved an advisory medical cannabis ballot question by an 82 percent to 18 percent margin.

Graham, for his part, opposes marijuana legalization and hasn’t brought any pending cannabis legislation up for hearings or votes in his panel, which handles criminal justice issues.

That said, he has cosponsored a handful of reform bills in past years. For example, in 2016 he signed onto legislation to protect medical marijuana states from federal interference and reschedule cannabis, and in 2017 he cosponsored a bill to remove CBD from the list of federally banned substances.

He has a mixed record when it comes to votes on cannabis amendments.

In 2015, Graham voted against an Appropriations Committee amendment that would have allowed the U.S. Department of Veterans Affairs to recommend medical cannabis to patients; but the next year he reversed himself and supported a similar measure. Also in 2016, he backed an amendment to prevent the Department of Justice from spending money to interfere with state medical cannabis laws.

Shortly after it was announced he would be taking over the Judiciary panel’s gavel, Sen. Cory Booker (D-NJ) joked that he would be sending marijuana-infused brownies to congratulate Graham, a quip that the incoming chairman seemed to appreciate.

While South Carolina typically isn’t seen as a state where Democrats are likely to pick up a U.S. Senate seat, this year’s contest between Harrison and Graham is attracting attention from national political observers due to the outsized funding haul the challenger has been able to bring in so far.

Illinois Collects $52 Million In Marijuana Tax Revenue In First Six Months Of Legal Sales

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GOP Congressman Withdraws Amendment To Block D.C. Psychedelics Decriminalization

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A GOP congressman filed an amendment to a spending bill on Wednesday, seeking to undermine a local Washington, D.C. ballot initiative to deprioritize enforcement of laws against a broad class of psychedelics.

But while Rep. Andy Harris (R-MD) made the case that his proposed measure represented a reasonable compromise—making it so only psilocybin mushrooms would be low police priorities and only if a doctor recommended them for medical reasons—he ultimately withdrew the amendment rather than force a vote.

“This amendment deals with Initiative 81…which would make the use of hallucinogenic drugs a low priority for enforcement in the District of Columbia,” Harris said in his opening remarks before the House Appropriations Committee.

The congressman added that he’s particularly concerned about the scope of the ballot measure, acknowledging that “there is limited data that psilocybin may be useful in some circumstances” but asserting that the same can’t be said of the other entheogenic substances such as mescaline that would be covered under the activist-driven initiative.

Watch the debate over Harris’s D.C. psychedelics amendment below: 

It should be noted that while activists behind the initiative submitted their signatures last week and believe they have more than enough to qualify for the November ballot in the nation’s capital, the Board of Elections has yet to certify them. Harris acknowledged that but said “I suspect it might be [qualified for the ballot] by the time” the spending bill goes to a bicameral House and Senate conference committee that will finalize the Fiscal Year 2021 Financial Services and General Government bill for delivery to the president’s desk later this year.

It’s not clear if he was signaling that he planned to reintroduce his amendment, which also stipulates that driving under the influence of psychedelics would be prosecutable, on the House floor or if he plans to work to get a senator to tack it onto that chamber’s version of the legislation, which deals with funding for D.C.

“I think the District of Columbia is different from other cities because we have people coming in from all over the country—and we certainly, I would hope, don’t want to be known as the drug capital of the world,” he said.

There was some debate on the measure by the panel. House Appropriations Financial Services and General Government Subcommittee Chairman Mike Quigley (D-IL) and Rep. Betty McCollum (D-MN) voiced opposition while the subcommittee ranking member, Rep. Tom Graves (R-GA), and Rep. Robert Aderholt (R-AL) spoke in favor of the proposal.

“If the district residents want to make mushrooms a lower priority and focus limited law enforcement resources on other issues, that is their prerogative,” Quigley said. “Congress has allowed jurisdictions in California and Colorado to exercise their sovereign right to set policy on mushrooms, the District of Columbia too should be allowed to use their local funds to support their local needs and their priorities.”

Graves argued that “we all can agree that policies that increase the availability of psychedelic drugs in our nation’s capital, that’s dangerous.”

“As the nation’s capital, the District of Columbia, it should be a place where Americans come to see their government at work, for history, maybe go to a Braves-Nats game—it shouldn’t be a destination for illegal drugs,” he said.

McCollum said the amendment serves as another example of Congress attempting to impose excess regulations on D.C. and argued in favor of statehood for the district.

“Now we’re not even allowing the District of Columbia to move forward and decide whether or not this is a good idea,” she said. “I oppose the amendment.”

Rep. Eleanor Holmes Norton (D-DC) celebrated the amendment’s withdrawal with a taunt on Twitter, saying, “Regular #homerule offender @RepAndyHarrisMD tried to bar DC from using its own funds to enact a proposed ballot initiative on entheogenic plants + fungi or any similar law, but then withdrew it before the committee could defeat it.”

That prompted Harris to reply that the “process of educating Congress about how dangerous this initiative is has begun. DC has enough of a drug abuse problem without becoming the drug capital of the country.”

Harris’s office didn’t respond to Marijuana Moment’s request for comment about whether he withdrew the amendment because he sensed he didn’t have the votes to pass it in committee.

In his closing remarks at the markup, the congressman said that his measure “is more than just mushrooms. That’s my whole point.”

“Mushrooms is psilocybin—that has a medical use. This includes mescaline, peyote, three other substances [that] have no medical use at all,” he said.

Melissa Lavasani, who proposed the D.C. ballot measure and is part of the Decriminalize Nature D.C. group working to pass it, said in a press release that “our campaign is about helping D.C. residents by enacting common sense reforms to police priorities that ensure that those using healing plant and fungi medicines are not law enforcement targets.”

This isn’t Harris’s first go at pushing for legislation that leverages Congress’s control over the D.C. budget to interfere in local drug policy issues.

Harris has been a consistent opponent of cannabis reform, repeatedly backing a long-standing congressional rider that bars D.C. from using its tax dollars to implement a legal marijuana marketplace. Last year, however, it was not included in the annual spending bill as introduced by House Democratic leaders and the congressmen didn’t attempt to introduce an amendment to reinsert it. It was included in the Senate version and was included in the final enacted bill following conference committee negotiations, however.

The Drug Policy Alliance sent a letter to committee leadership in advance of Wednesday’s hearing, urging them to oppose any attempts to interfere in D.C.’s ability to vote on the psychedelics reform initiative.

Colorado Marijuana Regulators Propose ‘Franchise’ Business Model For Equity Applicants

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Colorado Marijuana Regulators Propose ‘Franchise’ Business Model For Equity Applicants

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Colorado marijuana regulators are looking for feedback on a proposal to create a franchise cannabis business model to promote equitable participation in the industry by people from communities harmed by the war on drugs.

When legislators initially approved a bill to create an accelerator program for marijuana businesses, it was only designed to give eligible entrepreneurs an opportunity to share a cannabis facility with an existing company. But following stakeholder meetings, regulators laid out a proposal to let those entrepreneurs functionally serve as franchises of current larger marijuana businesses, operating out of separate facilities but sharing branding, advertising and intellectual property under certain conditions.

“The Division contemplates certain components of this alternative ‘separate premises’ model will be similar to a franchisor-franchisee business relationship,” the state’s Marijuana Enforcement Division said in a notice last month.

In order to participate under the new model, the division said it would require a series of disclosures, including initial investments from both parties, terms of any financial arrangements and obligations for the licensee such as non-compete requirements.

Additional requirements could still be developed. For example, the department is considering whether franchisees should be offered reduced or waived rent to use facilities owned by existing businesses that agree to be “endorsement holders.” Regulators are also contemplating limitations for the amount of money a franchise can charge an accelerator licensee as a fee for use of their facilities, as well as liability rules.

“Available incentives for accelerator-endorsed licensees to support the ‘separate premises’ model may also include fee reductions resulting from increased financial assistance and no-cost rent arrangements, and reduced accelerator-endorsed licensee liability,” the division said.

Beyond potentially collecting fees from licensees, the benefit of becoming an endorsement holder under this separate premises model seems to be that they get to indirectly expand their business and exposure while supporting entrepreneurs who might not have the immediate resources to break into the industry.

That said, some advocates are weary of the proposed based on past experience.

“While accelerator programs sound good on paper, they so often create terrible long term power dynamics for smaller businesses that we can not endorse this approach,” Jason Ortiz, president of the Minority Cannabis Business Association, told Marijuana Moment.

“Any relationship that puts a small business owner at the whim of a larger conglomerate makes us concerned that the power dynamic there does not favor the smaller business, who will now have their operation tied to the success of the larger entity,” he said. “We instead encourage any business to invest in grant based programs that allow for smaller businesses to operate on their own premises and to run their business how they see fit.”

At the same time, Morgan Fox, media relations director for the National Cannabis Industry Association, told Marijuana Moment that the proposal “looks like it could create a lot of opportunities for people to get into the industry without having large amounts of capital and could generally lower the barriers of entry significantly.”

“Judging from the comments in the feedback solicitation, it appears that the possibility of predatory or unfair franchise relationships is at the front of the Marijuana Enforcement Division’s priorities and it intends to make it very difficult for endorsement licensees to exploit accelerator licensees,” he said. “However, we’ve learned from the shortcomings and abuses in other equity programs around the country that it is important to continually monitor and assess these programs to ensure their effectiveness.”

Stakeholders can fill out an online form to submit input on the proposal. A hearing to finalize the rulemaking is tentatively set for July 30.

At the same time, the division is also working on the implementation of a bill that defines who qualifies as a social equity cannabis business applicant for the accelerator program. Gov. Jared Polis (D) signed that legislation, which also gives him authority to streamline pardons for prior marijuana convictions, last month.

The division is scheduled to hold a separate hearing on implementing the new bill on July 28.

Illinois Collects $52 Million In Marijuana Tax Revenue In First Six Months Of Legal Sales

Photo courtesy of Kimberly Lawson.

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