tv National Cannabis Policy Summit CSPAN April 20, 2018 10:05am-1:19pm EDT
10:05 am
10:06 am
funeral services for barbara bush. >> my name is caroline phillips. it's my great pleasure to welcome all of you here today to the inaugural national candidates policy summit -- national cannabis policy summit. here we are at the theater at the newseum. i would like to start by thanking our presenting sponsor. [applause] >> its business is like dr. bonner that make it possible for us to gather for conversations like the one we will have today. awould like to thank and knowledge the 32 nonprofit groups that are part of the national cannabis festival steering committee. worked hardhey have and have worked together to educate and inform the general public about better ways to talk about cannabis policy and reform. three years ago, i launched national cannabis festival
10:07 am
alongside a group of activists, business owners and dedicated volunteers. was time to bring the conversation about cannabis legalization and the fight for the rights of patients, business owners and the victims of the failed war on drugs to washington, d.c. as activists, we are accustomed to gathering together to talk about issues that matter to us the most. in thise many others room believe that our message is even stronger when we convene together as unlikely allies. when our chorus of voices comes together, it's even stronger when the decisions are varied diverse.ositions are brings together policy from all over the political spectrum who are ready
10:08 am
to take action for sensible cannabis policy reform. our first speaker knows a few things about reform and political action. she also knows a few things about cannabis. it's my great pleasure to welcome to the stage, new york times best-selling author and former deputy chief of staff to president barack obama, alyssa ramonaco. [applause] >> hi, everyone. i always come prepared. hi. i am so excited to be here today. i love pot. [applause] >> i recently read an article entitled "successful, sophisticated and stoned." i don't consider myself
10:09 am
sophisticated, but i do think i have been successful. i'm more successful when i have some pot. i suffer from irritable bowel syndrome. for all the years i was able to smoke, i didn't realize i had it. off my nerves that triggered my stomach. i drank wine and took xanax to take the edge off. i also gained weight and had chronic dry mouth syndrome. marijuana has helped my headaches, helped me to sleep and keeps me more even. i'm more creative and i only use it at home. i'm a small example of the positive impacts of making pot available, weather for pain whether forr -- pain management or chronic pain -- itcrohn's disease
10:10 am
showed a 60% reduction in seizures in adults and children diagnosed with epilepsy. be useful in treating mental illness and addictions. recreational marijuana is legal in united states. medical marijuana is legal in 29 states and the district of columbia. it's considered one of the world's largest cash crops. with that comes the responsibility to force change. to imagine a new industry of anrtups to actively create industry that looks like america. an industry where women and underrepresented communities can lead and thrive. to date, i have not heard of anyone more elegantly stating
10:11 am
the case then cynthia nexen. arrested inorkers connection with marijuana use were black or latino, despite equal rights of use among white people and communities of color. there are a lot of good reasons for legalizing marijuana. for me, we have to stop putting people of color in jail for something that white people do with impunity. [applause] >> exactly. everyone should be following her. she went on to say that ending the injustice of putting new yorkers in prison for marijuana is a start. we have to correct past injustices by expunging prior convictions. the victory of decriminalizing marijuana, legalizing pot for recreational use, freeing the weed won't be a victory at all if the people who paid the price aren't redeemed in the process.
10:12 am
[applause] >> so now, we move to big news. senator tulsi gabbard was supposed to be here this morning. she has sent a video, which i will introduce. it will be followed by a video from congresswoman barbara lee. introducedsi gabbard a bipartisan bill, the ending federal marijuana prohibition act which seeks to decriminalize marijuana. she's calling on the fda, which has classified marijuana as a schedule one drug along with heroin and lsd to remove it from this list. being on this list means the valuable and critical research i nto the health benefits of marijuana will not happen at the pace which should be required.
10:13 am
three forms -- the reforms seeks -- aloha, senator gabbard. aloha.abbard: belo thank you to the national cannabis policy summit for your work to advocate for long-overdue reform. we've just gone through record-breaking rainfall and landslides that have displaced hundreds of people. many of my constituents are still without water and electricity. please keep them in your thoughts this weekend as new
10:14 am
rainstorms have moved in and recovery is still underway. yourmportance of participation in this critical discussion cannot be overstated. archaic and nonsensical laws on cannabis are turning everyday americans into criminals, sending them to jail, ruining their lives, tearing their families apart and wasting huge amounts of taxpayer dollars to arrest, prosecute and incarcerate people for marijuana use. a substance that has been proven time and time again to be far less dangerous than alcohol, both for consumers and for those around them. in my home state, we send hundreds of inmates out of state every year due to prison overcrowding, the large majority of which are due to nonviolent drug charges. what is at stake is much more important than what anyone politician may think about
10:15 am
cannabis or whether or not they choose to use it. of fiscal and social impacts sending people to jail and turning them into criminals for the use of cannabis are having devastating ripple effects on people and communities all across the country. researchers are finding more and more that there are lower incidence of opioid related deaths in states that have legalized marijuana. i've introduced hr federalend the prohibition of marijuana and take it off the federal controlled substances list. we are continuing to gain support from colleagues in both parties. really, we need each of you to keep the pressure on, to share personal stories and experiences about why this action is so important. call your lawmakers, write them letters, we at them -- tweet at
10:16 am
them, send them messages on facebook and hold them accountable because we need this change now. i'm working with my colleagues on both side of the aisle to provide certainty for businesses who face contradictory regulations and laws between individual states and federal statutes that affect their bottom line and ability to operate. for example, bankers, insurance companies and others fear the threat of federal prosecution, especially under this attorney general, in states where marijuana has been legalized. there is so much more that we can and must do to change the policies in this country that reflect where the majority of people are and defeat unfounded fears with facts, science and the freedom of choice. thank you for your commitment to making this happen and for putting in the works of that we can build a better, more free future together.
10:17 am
aloha. [applause] rep. lee: i'm congresswoman barbara lee, and i'm how to represent california's 13th district in congress. it's my pleasure to welcome you to today's timely discussion. first, i would like to thank national cannabis policy summit for bringing everyone together. today is an opportunity for all of us to work together to tackle the most pressing challenges in the cannabis industry. foremost among these challenges is the inclusion and equity for communities of color. we all know the war on drugs has been a colossal failure that destroyed lives and targeted communities of color. as we move forward, we need restorative justice to rebuild the lives that were shattered.
10:18 am
i'm incredibly proud of my district, california's east bay, for leading the way. by focusing on uplifting entrepreneurs opening legal cannabis businesses, oakland and berkeley have become models for the industry. i'm trying to end the remaining vestiges of the failed war on drugs. would end the wrongful federal interference in the cannabis industry. together, we can and will pass these comprehensive, necessary and overdue reforms. thank you for your work. i wish you all a productive and successful summit. [applause] >> we are back.
10:19 am
hi, everyone. this is our panel on amplifying equity in the cannabis industry. we have three guests with us today. the managing director of hyper ventures, the cfo of and tech mbaisition and she has an from yale and was named one of the most powerful women in cannabis. [applause] dr. shonda messias, also an mba biologistormer cell
10:20 am
who works for the number one dispensary in washington, d.c. and she has four kids. she has a lot happening. glenn delegate cheryl couldn't be here from maryland. she sent a letter. first, she is very sorry she can't be here. as legal cannabis arrives maryland come i'm committed to ensuring communities of color are represented among the new business owners. i'm delighted to know this conversation is being treated with seriousness. in august 2016, the maryland medical cannabis commission issued 50 licenses. not a single one was a person of color. something unfathomable to me. 2016, theer legislative black caucus of maryland announced a plan to
10:21 am
introduce emergency legislation to address the lack of diversity in the cannabis licensed distribution. in april of 2017, a bill that promise to seven additional -- died in thes final minutes of the general assembly. what happened at the maryland state that they was an orchestrated plan to defeat the bill. people of color happened disproportionately impacted by cannabis prohibition in this country. but don of legal cannabis has created millionaires while others happen persecuted -- have been prosecuted. i joined with my colleagues to say no more. we spoke out and raised awareness and demanded action. just a few weeks ago, the house and senate reached an agreement approving a measure that would allow maryland to issue new licenses for growing or processing marijuana in ways that assure racial diversity.
10:22 am
i'm proud that maryland is finally acknowledging and taking the steps to create a more diverse industry. we must remain vigilant. while i cannot be with you today, this conversation is being presented by a knowledgeable and capable group of professionals and advocates. thank you for all that you are doing. [applause] ladies. you --t question is for the cannabis industry is the fastest-growing major industry in the united states. therding to forbes, industry is expected to grow from $9.2 billion this year to $47.3 billion by 2027. as the managing director of , tell us what qualities you are looking for in a business and what women and
10:23 am
minorities can do to break in. >> with hyper ventures specifically, we focus on businesses that are more infrastructure based. their building the foundation of the industry that we believe will be important now and as we move into federal legalization, which we are all waiting for. we look for businesses that are scalable. because ofo scale human's appellate rules -- because of municipality rules. examples, we have a compliance platform we are invested in that allows businesses that are licensed holders to stay compliant within their business. we are looking for things like that that will create more transparency around the industry. data is very important.
10:24 am
being able to show various levels of government that we can provide this information and provide a safer industry that can really help people in the -- a lot of the points we've already brought up, there is this disproportionate allocation of resources to various populations and populations that have traditionally been associated with cannabis are shut out to a certain extent. there are a lot of groups that are focused on social equity. a great example is the hood incubator out of oakland, bringing people who worked in the black market or didn't have the resources to get a license ,r put up a retail dispensary giving them the resources -- they are amazing resources to
10:25 am
create this community around groups that are trying to move the needle. we really need to focus on not shutting out those communities. it's our chairwoman, mission to help women get into the industry and also minorities. it's going to be very strategic to put both women and minorities on the public platform so there's awareness around the wonderful technologies, the innovations and the businesses that we can offer this industry. often, i've seen that we have women and minorities that have that unbelievable ideas can really add to the existing industry but because of the barriers, they don't get access into this industry. those are the things we are
10:26 am
trying to equip them with, the necessary tools they need to break in. the major barrier we face is finances. you have to have money to get into this industry. >> when you guys saw that john boehner was added to the board of a cannabis company, was that encouraging, like becoming mainstream, or are you like are you kidding me? it was a mixed bag. how did you guys feel about it? >> it's about economic empowerment. we see the disproportion of white men carrying this industry. we know how lucrative this industry will be. of keepingagement
10:27 am
other people out of it is very important. what is power defined by? money. i'm going out there every day, encouraging minorities and women to go out and get their technology and businesses things so they can have the opportunity to gather that type of empowerment. power by money. truly change the narrative and be on equal footing so we don't need to implement diversity protocols in corporate america or inclusion protocols. [applause] >> i think that i was a bit torn about the news. it's great to see more people supporting industry. on the other side, i would like to see other faces, supporting the path weg from
10:28 am
are not expecting -- i want to see more women and people of color on board. that's our job. we feel strongly about that, bringing those people forward and telling their stories, helping them get funding and telling those narratives. it's great to see people jumping on the bandwagon. we are trying to create that path. there has to be a balance. >> i definitely had mixed feelings. know,n him, but, you things for jumping on the bandwagon. according to a study, only 26% of executives in industry are women. that isa culture steeped in stoner stereotypes and women often play the role of
10:29 am
temptress in the branding materials. one of twof african-american women in industry -- we could be better at diversifying the licenses. one of the hurdles you've seen for women and some effective studies for combating them? >> i talk to women about entering this space. we are not supported financially to enter this space. a lot of people are not ready to invest in the cannabis industry. even though we have the technology to do it, we have to go beyond the call of duty. when i thought about entering this industry, as lucrative as it might have been in 2012, as a minority woman, it was well
10:30 am
known at the time that if someone is going to be prosecuted, it would be someone who looks like myself. when i think of the narrative that was instilled in me, we are scared of prosecution, we are afraid of being targeted because we have been historically. we have to change the narrative to have examples of women and minorities that are entering this industry and doing phenomenal. we have certain cases of that. i think about jesse martin in oregon. we have won the james in denver -- wanda james in denver. we have a 27 page legislation that is ideal for minority participation. change theave to narrative and ask minorities and women to engage with us.
10:31 am
two, we have to find ways to be funded so we can bring these technologies to the forefront. from there, i had to go through a second mortgage to support my own business because i couldn't get someone to believe in me. i believed in myself. i'm asking you all to do the same thing. [applause] >> do you guys have examples of current programs that are working now? how can people replicate them and make them successful? >> there's some different initiatives going on in california. hood saw the need for it. they weren't seeing it in legislation. now, we are seeing in a part of, in l.a.,
10:32 am
that is looking at how we expunge past criminal records for something that is legal now. san francisco is doing something similar. seattle is doing something similar. it is an amazing step forward. at the same time, these are really small, dealing with hundreds of people. we needed to hit millions. as we see these models come to light, when need to start replicating them and making them significantly larger. a lot of people who have previously been incarcerated, they don't have the resources to go out there and get their records expunged. if i had a record, i don't know if i would know what to do. putting resources behind that, making the information more public, funding others who are willing to give their time to make this happen -- it is costly . we have to build that into our policies and legislation across
10:33 am
the states in order to make that happen. it's unfair that people who may have been caught for possession decades ago, today, that would be legal. overwhelmingly, those populations are black and brown. the impact will keep compounding over the years if we don't do something about it. wei know washington, d.c., had a second round of dispensary applications that opened up. bailout allowed extra points for those that are minority participants -- they allowed extra points for those that are minority participants. that's how we can increase equity in our program. there's a difference between the different applicants. because of our challenges, we do need different handicaps. a lot of people who are qualified are being discounted because we have prior criminal records.
10:34 am
they are the ones who established the industry, saw the need for it and now, they are being excluded. greatgton has been a example of making sure minority ownership is important. i've seen different legislation throughout. the change occurs with the regulatory board and the legislation. you have to support us and we have to be in those rooms to be able to ensure our voices are being heard and we can change the policies before they are put before us. >> can you tell everybody more about women grow and successes you've had leading that group? >> it's been wonderful. i've been the chairman of the board since february. i was the market leader prior to that. in three markets -- maryland, d.c. and ohio. what i've seen in three different markets -- one is an
10:35 am
established one, one is an emerging one and one hasn't started. for women in those groups who are the caregivers of their households, their communities, have been able to change the narrative about using medical marijuana in their communities. we are the ones who run our households. when you empower these women to do these things, this is amazing. i've seen businesses emerge. i've seen advocacy increase significantly among their populations. i smiled because women in this group is so imperative for our children. women who been fighting for their children with epilepsy or itism or cancer, etc., appreciate what you are doing because you are saving lives.
10:36 am
when i think about what has transpired through working with women grow, i know we've been able to change the narrative of what's going on in the united states and i'm grateful for that. >> we are talking about children, but with our aging population, veterans, it's having a huge impact on those committees. when we see everything that's happening with the opioid epidemic, this could really have an impact on that. deal with how we people suffering from cancer or that is a huge area we need to focus on as well. i wasple of weeks ago, talking to a group of people about this panel. i said that i thought expunging records of people who had been imprisoned for marijuana -- lettingor use
10:37 am
people out of prison and , same as the records when dna technology became more sophisticated, the technology came, signs matured and we know that person didn't commit a crime -- science matured and we know that person didn't commit a crime -- it was surprising to me ,ow people were triggered they didn't think about it that way. >> it has left the community devastated. the handicap is there. how do you help them rebuild their lives after all this time they've had taken away or the opportunities? we are trying to create this narrative. what do we do now knowing what has been done to our community? >> i had some thoughts about current affairs. guysf my questions for you
10:38 am
, when jeff sessions said the federal government would prosecute anyone in possession of or selling marijuana, in that moment, was there a chilling effect on the industry? did you feel people recoil? did you feel people bounce back to where they were years ago? >> there was definitely fear. it was january 4. i was getting messages left and right. panic was setting in. once i went in and read his remarks, i felt great about it. he was empowering attorney generals to say make the rules for your states. people in states where it's already legal, it's business as usual. frustration is the headline risk and fear it puts into the industry. businesses are trying to operate
10:39 am
and stay aboveboard and pay taxes, which the government makes difficult to do. they have a cash heavy business, not allowing businesses to write off certain costs. period when hour all of the businesses i work with were like, what's happening? know, were just like, you business as usual. we will operate as we have been. we will do what we think is right and see what happens. the stocks rebounded by monday. thatntinues to remind us we live in this gray space and cannabis. on any given day -- my bank account could get shut down. we take a lot of burden on ourselves.
10:40 am
credit is being run. on any given day, my bank account could be seized. that is the risk we run. we really believe in the industry. we believe we are doing the right thing. we believe there's more to do in this space. >> i cannot agree more. 4,erate fourth -- january the first thing i said, out of all the people who have dispensaries, they are going to come after me. i was so scared. one of my going to do with my four children now? this is not about them. this is about patient access to health care and my true authentic self. i'm going to stand up for our rights. there was the downside of it. , there was allt
10:41 am
this awareness that was brought to the forefront. everyone was having conversations about medical marijuana, medical marijuana policies, the use of cannabis. it really hit mainstream america and brought our issues to light. even though it was a scary feeling inside, it was also one that i could never pay for that amount of advertising. . it did us all well in a sense. >> i never would have thought of it that way. thank you, mr. sessions, for the free publicity. women of color, what are the biggest personal hurdles you faced? to clarify for the audience -- what are some of the hurdles you had to overcome?
10:42 am
>> i will take a deep breath. i have been publicly ostracized at times for being a dispensary owner. i've been called a drug dealer, i've been told that i am an unfit parent. i've faced a lot of scrutiny. i consider myself a highly educated professional. i've worked for fortune 500 companies. i worked at howard university for years. am andy proud of who i the professionals who have also held many patents, bringing a of who i am as a scientist to this space. somethingmeone say derogatory like you're a drug dealer and an unfit parent, it is hurtful.
10:43 am
for my own sake, i come back to my community. the national holistic healing center, i see my 2000 plus and they tell me you've changed my life, i say it's ok, you can call me a drug dealer. patients, i'vese made their lives better and i will continue to do so. [applause] >> i hold no patents. that is a hard act to follow. like, yeah, i'm a drug bill. -- a drug dealer. >> a drug dealer from yale. >> we entered the space kind of early. a lot of people weren't doing it the way they do now.
10:44 am
it was kind of taboo. am i essentially taking this expense of degree and lighting expensive degree and lighting it on fire? the support i got from my professors and even my own family, there was something there. i was interested in the medical side of the business. my grandfather had been suffering from cancer during my second year of business school. you go through all the google wormholes and find all the different treatments and come across cannabis pretty quickly. my family lived in ohio. my mother text me and my sister and said, "do you guys know where to get marijuana?" do you think this is a test? yes, i do know where to get it. i wouldn't want to get that for my grandfather.
10:45 am
you know where to get black market, but i wouldn't trust that. people were starting -- understanding the benefits from it. i was frustrated that you couldn't just get access to something that was going to help someone. the last couple of months of his life, he just wanted to become purple. -- he justt get it wanted to be comfortable. couldn't get it. me.assion constantly pushes i'm proud of being able to be a woman in this space, being a minority woman and people reaching out like how do i do this, how can i follow in your footsteps. it's amazing that there are
10:46 am
people who want to continue to do this. and toud to help others be a face and a voice for others to move these populations along. can be taken at the state level to ensure equal access? what can people look for on ballots? what can they do? >> i'm going to start with getting involved in your community. there's different advocacy groups. there's norml and others here today. there are other marijuana policy projects. -- womeno many ways grow works with leah some groups aison groups.
10:47 am
we start with groups currently advocating for us now. they are the ones that can help empower us. we need support. what they are doing to make sure we are empowered. also, we need more activism. we need to know what we want in terms of legislation. ncba, on back to the their website, there's 27 pages of legislation. if you're a minority, you would want them implemented. again, it's like having the power, which is money, to have our voices heard in the legislation process. that is still our challenge. we are deficient in those resources to have that voice heard. >> i think it's really important that those two are creating the legislation and implement in these laws. they need to start looking like
10:48 am
the broader population. to your point about making sure it is local and getting involved locally and making sure we are amplifying those candidates who are from those commuters or are in support of those -- a lot of the legislation we've seen in the past, it's created by people who have no idea what those communities are going through. we need to have more people of color and women involved. we need to do more to position those people within the space. >> do you guys think cannabis policy will play a big role in 2020? >> absolutely. if it doesn't, it should. >> a call to action. >> it definitely will have a place. when you said that, i know there's a lot of women that treat their children with cannabis. workingy, i know ace is
10:49 am
on legislation with that so the parents don't have to take their children off cannabis and administer medicine because they are in a drug-free zone and then bring them back. the children facing different elements like epilepsy or multiple sclerosis or autism, they already have a stigma. work ahe parents can't 9:00 to 5:00 because they have to take their children off site -- and treat them and then bring them on. we have to make this normalized. the people we brought into power in 2020 will be those who recognized the needs of the community, including women and the older population. we are the sandwich generation. we have elders we are taking
10:50 am
care of and our children. we need things to work for us. >> one last question before we turn to q&a. where do you guys see the industry in 10 years? where do you want it to be? >> i really feel like the industry in 10 years will be completely open. cannabis is going to be normalized to a very high degree. that's why i'm pushing so hard for minority and women participation now. the people who enter at this round will have the opportunity to grow and be the leaders of the future. in order for that to happen, the seeds have to be planted. i believe it will be a wide-open, free-market. >> cannabis in 10 years will look like other industries. of all ofy a mix these different industries.
10:51 am
consumer packaged goods, big g alcohol and the total health and wellness side of it. we are starting to see that it is the tip of the iceberg on all of those elements right now and that will keep going. regardless of whether or not we have federal legalization, the tide has already turned. you can't put it back in the bottle at this point. this is happening. we will see more states supporting it and learning from each other and other countries. we have canada going adult recreational by the end of this year. we will learn from these different groups. me, it'sfrom now, for hard to imagine what this looks like. it will be so much more accessible to the communities that need it. at least i hope that's where it's going to be. >> thank you, guys. questions?
10:52 am
you can raise your hand and i will call on you. you, sir. is the cost of, participating going up or going down or staying the same? >> for me, it is going up. it's now getting more competitive. there's more people willing to enter this space because the narrative has changed. we have to have an application, we have to show proof of funds. and, you have to have somewhere to locate, real estate. these are three moving triggers. the application can run you -- between and 150 $50,000 and $150,000. $50,000,te can run you which is typically required in most states at the time of
10:53 am
application. you have to keep paying rent on that location while you are waiting for the decision to be made. they want to know if you can sustain the business. you are talking some people have a minimum of $2 million. the average is hitting about $50 million. there's a true barrier to entering the industry. butto say it can't be done, you have to work on those things early and find creative ways and solutions to get around the various. >> on the financing side of it, for businesses out there looking moreunding now, it is much competitive because there are more businesses operating in the same space. a couple of years ago, you may have been able to have a great powerpoint deck and get funding. you have to really show proof of concept or bootstrap getting to
10:54 am
market. people are really excited about the industry. it's getting more competitive. there's more work to go into the foundation. collaborating increasing partnerships with groups, i really encourage that. that's high you get a syndicate to go and do something together. >> there's a lot of ancillary businesses that don't touch the plants that have a low barrier to market. what i'm encouraging is those individuals, the ancillary businesses to really focus on what innovations they have to bring to the marketplace. you don't have the same hurdles , the plantve touching individuals. plant, you touch the
10:55 am
there's a big misconception that you are making all this money. butre making very little, just holding place until the market opens up. wouldace i would focus on be in those ancillary businesses that are doing phenomenal. >> next question. >> what's your thoughts of what happened in washington state -- [indiscernible] do you see that potentially happening in other states moving forward? >> indulge me for a second. recreational and medical -- what do we think about washington state? washington state used to have a recreational and medical market and they have merged into one cannabis market. as a professional in
10:56 am
this industry, i don't believe there's a difference in the two. all of it is a medical market. i think access is just recreational. we feel people can come in and get medicine. medicine is medicine, which is all medicinal. when people say recreational, they are coming in because they don't understand they are treating the underlying issue. when you use a medicine or any substance, you are trying to address something. you may not be cognizant of what you are trying to address. that's why it's important to have consultants or people you work with to guide you through the process. you can have the proper alignment to get to whatever ailment you have. i feel like it is all medicinal. walks youl program through it to get overall wellness and health. recreational, you are treating
10:57 am
yourself, but you may not be equipped with the education to be able to do so. a lot of people who say they had a bad experience, that's where it's coming from. you are treating yourself and you don't know how. you don't know the best methods for consumption. you don't know the strength and the dosage. you just want to feel better. it is very much a medicine with a particular science behind it. [applause] question. i'm wondering if there are funds are doing to prioritize women and minorities. looking focus of mine, at our portfolio and all the different businesses in the from awe try to get
10:58 am
hiring perspective women and minorities into these businesses. we have board seats on the lot of them. we've worked with a lot of different capacities. you tend to be a partner in a lot of regards. being able to influence that side of the business. on the other side, you see more and more this desire to coach from groups. -- different groups. i may see a venture plan that wouldn't be one we invest in -- i like to give feedback and say here's how you can move this business along. i will have people pitch to me and help them with their pitch. a lot of them are first-time entrepreneurs. it's not a fun process. no's beforeugh 150 your first yes. we hope we see other funds doing this as well. that's how you help these various populations move
10:59 am
forward. >> yes, ma'am? >> i have a question for both. what are some tips you can give? oftentimes, the challenges are seeking funding and the capital. ?hat tips can you offer those >> a big part of it is getting that feedback and seeking out that feedback. going to groups like women grow or other venture funds -- not everyone will give you the time. you have to keep pushing for that, trying to get that feedback. people you know in the space, people you admire or think would be helpful, reach out to them. the people i reached out to early on -- when you get that feedback, it's really important. you will continue to improve. people have asked.
11:00 am
if you are ready for it. i offer constructive criticism. that's how we all get better. groups is aese great stepping stone. be willing to put yourself out there and ask people for feedback. that is really important. >> go ahead. >> what lessons have you what would you do differently? knowing what she knows now? my hesitation in answering that truthfully is i had no idea how many barriers that i had to overcome, whether they were financial, real estate. i paid real estate for two
11:01 am
years, and my landlord said, you know what? i am taking your lease back. these are the realities of the operationalize, and i had one cultivator who ran two strains come and i had six others in my market that refused to sell to me. it has been unbelievable in terms of having to continue to do this, but when it is your passion, you have no choice. i would not have done anything differently, because i had to learn those lessons. for me to grow where i am going to go in the future, those are the lessons i know, what to do and what not to do in the future. so i impress it. i know how i felt on my knees and just ask god to give me the
11:02 am
strength to carry on. so that is -- >> [indiscernible] terms and definition. what is minority? i ask that because as a black somean woman, i also know german-americans and jewish-americans, and just white people, caucasians. and they have fallen on hard times, just like other people who would be a minority. [indiscernible] me wrong, because it is easier because they can walk into the room and -- [indiscernible] term or your
11:03 am
definition of minority? >> the question is, what does the term i nardi in this case mean? -- minority in this case mean? >> any population that has essentially been disproportionately impacted or not have access to what a majority does. it often does fall on race, unfortunately, but to your point, there are other what would not be on the service minority populations, but would be impacted. anybody who has disproportionate access. i am a south asian, my family was pakistani, and i would consider this to be a minority group, but in i.t., you do not think that way. i amtually, tell me if wrong, in parts of california it is done by incoming. low income is considered a form
11:04 am
of minority protection, consideration of. >> i agree completely with you. to beave not been able granted access because of their gender, their race, and their socioeconomic level. >> we have time for one more question. he said, please. and i can see you. >> [indiscernible] i am a veteran who is a single mom, have girls who will be 11 next we come and my choice was either having pills and being in bed and not having my kids go to gettingn time, for not
11:05 am
a job and reducing my income, and having to pay out-of-pocket, and insurance does not pay for cannabis. [indiscernible] they have got me some -- to being fully active -- but it takes a huge economic hit. i'm not the only one. there are a lot of women out there who are single parents. what type of -- have you seen -- >> to repeat the question as well as i can, rose is from the veterans cannabis coalition, and she is asking cannabis is not covered by insurance, but is the only thing that works for her, and how do you deal with that financial impact? i find dispensary owner,
11:06 am
this all the time. i fight for my patients. i go to my cultivators and demand lower pricing so i can pass on that cost savings to the patient. it is a real issue, and, yes, you are a veteran woman, but i have seen minority populations with urban posttraumatic stress disorder. i have seen so many elements in the veterans population, period, te,t the patients, the c the suicidal rate, the opioid issue i face every day, and having access to the medicine knowing that you cannot really and you are taking it from somewhere else. that is one of the things that -- has addressed that what and g it from somewhere else. that is one of the things we do in the near future have the
11:07 am
nonprofit so we can give subsidies to family that suffer for that reason alone. there is not another way for me to answer that because we know that we do not have insurance -- >> my question was, what was the impact you are seeing in these damages -- families? >> [indiscernible] tincture, and they might put it in a little water bottle and sit on it while their children are in soccer practice. --ean, the quality of life they are able to go into their children's life and engage with them. so i have seen more bonding. i have seen the relationships. the same thing with veterans, that they are now able to have meaningful relationships with other people because now all of andr anxiety is taken away allows that one on one type of interaction again.
11:08 am
it is so beautiful when you embrace the cannabis community, because we are just about love, and it is an amazing thing. i have seen tremendous effects with my women. i think most women that i see, believe it or not, their major symptom is anxiety. once with a cbd product that releases that, they can engage in life again and it is like a renewal, a second chance. the flipside side of that is i get what we call -- i will make it simple -- our patients are remorseful that they do not have access to this, and they wasted five years of their life, that they felt like if they had this doesn't, the course of their future would be completely different. i have to deal with, one, administering the medicine, and,
11:09 am
dealing with the repercussions because they are upset because they do not have the access before. we try to keep it in perspective, but that remorse is a genuine issue we have to deal with. it is just a misfortune that we have to go through. but the success of the medicine has been so incredible that it is still overshadowing that remorse. >> thank you, guys. [laughter] -- [applause] [captions copyright national cable satellite corp. 2018] [captioning performed by the national captioning institute, which is responsible for its caption content and accuracy. visit ncicap.org]
11:10 am
>> i am experiencing technical debacles. i'm sorry. we would like to -- i'm thrilled to be here as part of the national cannabis policy festival summit. 's, laws on d.c. marijuana -- congress has blocked our medicinal marijuana laws, our ability to tax adult marijuana. congress went as far as stopping us from counting our own votes. we call on our allies to lift us empower our efforts.
11:11 am
it is my privilege to introduce a long time advocate for statehood and an ally of d.c. vote. previously, she has held leadership roles within organizations final to moving the cause of justice forward. as a member of the board for the alliance of justice and the former president of a network, a the publiccenters of interest. she is a leader across the united states, and it is my privilege to introduce to you betsy cavendish. ms. cavendish: thank you, and thank you, d.c. vote, and thank you to the organizers of the summit on 4/20. good morning. i am glad to be with you today, subbing in for mayor muriel bowser, and welcome to washington. i hope everybody who is here who does not know this city of
11:12 am
700,000 persons will enjoy our neighborhoods, restaurants, parks, and cultural life. we would like to say washington, d.c., is a great place to live, work, and play. i would like to make three points in connection with today's event. echo bo, everyone should be an advocate for d.c. statehood. people from all over the country face a complicated legal environment where marijuana is a controlled substance, illegal federal league, but it may be legal under various state regimes under medical or recreational use. here in washington, because we do not have stated, congress places extra controls on our budgets and laws. that is, cannabis is extra complicated legally here in the district of columbia. has forbidden
11:13 am
washington from further collecting penalties for marijuana following our decriminalization laws and legalized 71, which homegrown home use. our overlords have forbidden us from having a legal regime to regulate, tax marijuana on our terms. if washington or a state, the constitution would make federal intrusion unique to the district and constitution. toughumbers of congress up their conservative credentials by voting on such matters as loosening our gun laws, increasing barriers to women's access to abortion services, curtailing the methods we use to beat the hiv-aids epidemic,- interfering with death with dignity law, and they have succeeded in barring washington for having a legal regime for
11:14 am
recreational use of cannabis. we are a peculiar situation legally could it is legal to grow a few plants in the district, and it is legal for adults to possess modest amounts of marijuana. you can have it, you can smoke it, you can grow it, but you cannot like it -- buy it. we have a bigger black and gray market here than we would have if we were a state. please join us in calling for an end to this subordinate status for washington, d.c. the voters of washington, d.c., voted overwhelmingly for statehood in 2016. the ball is in congress' court, and for this reason, i hope you support washington, d c, in our request for statehood. you care about autonomy, and we do, too. as have some numbers. 4/20, at our
11:15 am
special number in washington is 51, for the 51st state. 4/20 for 51! relates to myt first point. if we had a legal sales wishing for recreational marijuana, the district could better support health and safety. no longer would a shady dealer cut marijuana with pcp or a fatal dose of fentanyl. advocates are fond of saying no one has died of cannabis, but that does not mean they have died of using it when it is legal with other substances. many advocates tout the medical uses of marijuana, but any benefits can be offset if marijuana is grown with harmful pesticides or becomes moldy or fertilizers are ingested and inhale. a tightly regulated regime would help users have confidence they are not inhaling cannabis with a
11:16 am
side of mold or eating organic branding these -- brownies tainted with fertilizers. i hope proponents of legal cannabis will emphasize that when and where the whole marijuana -- marijuana is legal to use, they should be informed about consequences, including illegal. drunk driving is dangerous, and like like being -- feels -- if they have cannabis in their urine. in washington, the aware much of the land is federal and there are handfuls of law enforcement agents other than our mpd. thank you for inviting the mayor to speak. stay safe, and please support our question for statehood. [applause] perlmutter, a
11:17 am
congressman from colorado, i want to watch -- welcome you to washington, and thank you for letting the bridges make in your national cannabis policy summit. i wish i could be there with you today, but i want to thank you for organizing and gathering here to help us in congress gets the laws, the federal laws, to align with state laws. so many states are allowing for businesses like yours to properly operate in their states, but the federal law is in conflict with that. particularly, we see that in the tax code and in banking laws. i served on the financial services committee which involves the banks, credit unions, and i am working on a law that says if you are a business that is legitimate in your state, you ought to be able to have normal financial services, credit cards, payroll accounts, checking accounts,
11:18 am
those kinds of normal business type accounts. but because of the federal law not being in sync with state laws, we see a lot of conflicts. we are trying to figure that out. your visit to washington, your policy summit will help us get the laws so that they make some sense. i want to thank you for being here today. good luck at your policy conference. and enjoy yourself while you are here in d.c. thank you very much. [applause] >> good morning. my name is michelle rutter. founded in 2010, the national cannabis industry position seeks to represent a responsible canada's industry. ncia is leading the unified campaign to ensure this emerging business industry is treated fairly under federal law. our priorities include reforming
11:19 am
federal law to allow for cannabis-related business to access traditional financial services, such as banking, and whichating tax penalties, you are about to hear about today. ia seeks to, nc connect, educate, and advocate for more than 1500 member businesses across the country. today i'm happy to welcome john fasman to moderate our panel. correspondent a for "the economist." that an author of a book has been translated into more than a dozen languages, and another book was a finalist for an award. welcome john and our esteemed panelists to the stage. [applause]
11:20 am
mr. fasman: good morning. my name is john fasman. i have to plug our paper before we started we have supported drug legalization since 1988 when it was considered a fringe, irresponsible position. i'm glad to see the world is catching up. is cannabis and tax fairness. this subject received angel of good news lately. said that president trump promised to support congressional efforts to protect states that have legalized marijuana, and chuck schumer announced he is proposing a bill to decriminalize cannabis at
11:21 am
federal level. that puts him at odds with jeff sessions, one of america's last dedicated drug warriors but we will talk about what this means for the industry, and have a great panel to discuss this with , from amichelle minton libertarian think tank. a, who focusesagi on the cannabis industry globally. he had john hudak, deputy director of the senator -- center -- at the brookings institution. levine, and we have grover norquist, the president for americans for tax or four. the shell, let's start with you. most americans support legalization. why is it not yet legal? ms. minton: it comes down to
11:22 am
incentive. when you are asked if you support drug legalization, over 50% will say yes for it comes to recreational, 80% says when it comes to medical. few of them are willing to go to a representative saying i will not vote to you if you do not legalized marijuana. there are a small minority of people in the republican side who have a lot of money who will say i will not fund you if you support marijuana legalization. it is easier for politicians to keep their heads down, but my -- at least. court 50 people in the house who have already voted for some kind of marijuana innovation built. there are another 25 or so who have voted in a way that makes them think should some kind of bill,, they would be likely to vote for, and there are an unknown number of people who are quietly pro marijuana.
11:23 am
there are a lot of rep. higgins: who say they believe in states -- republicans who say they believe in states rights, but those types of people, paul des, who should support cheduling marijuana. paul ryan has been anti-marijuana legalization. he has started to soften a little bit. the chuck schumer bill has come up, it is hopefully going along with the type it in the last year, we have seen so many bills that makes me think the pressure is starting to sift, the incentives are starting to shift, but it is still easier for a politician to keep their head down on an issue because it comes that until it becomes an election problem. betting,n: if you were and the cory gardner bill, chuck schumer bill came to the house and senate floor, would they pass?
11:24 am
what are the chances they could to the floor? ms. minton: schumer's bill, good chance. bill, less of a chance. leadership has for the most part taken a pretty anti-pro marijuana position. mcconnell,ve mitch who introduced last week a cap legalization bill, and lucy said that she might eventually consider legalization of marijuana them -- and colusa he losi said that she might adventure early consider legalization of marijuana. the schumer bill has a good chance, and the gardener bill has gotten a lot of support. it has less of a support because of his rank. mr. fasman: marijuana it is still illegal at the federal level. we surprised we have not seen more federal marijuana prosecutions? d.aagine an ambitious young
11:25 am
. in denver, seattle, he wants to impress jeff sessions. why have we not had someone go after someone on the federal level? ms. minton: it is high-stakes for jeff sessions. we had were blocker handicapping hrabacker handicapping miss us. open theappens, they door for the courts to considering this. also puts more pressure on politicians to do something. if the state start legalizing it and the federal government and the department of justice do not interfere, us voters, the 60% or 80% you say it wants to be legal -- if the justice department starts prosecuting mom and pop shops, people get angry and it moves up on important issues when they go to vote. mr. fasman: if we were to see a
11:26 am
crackdown on the business, you think there would be a push toward full legalization? ms. minton: and i think sessions understands that, he is going on the idea that what he wants to do is not so much throw people in jail, although he definitely wants to throw people in jail, he always wants to do that, but he wants to take their money also. what he really wants is to create a killing effect of the state. he wants to stop the progress and the other states by threatening to prosecute bit state legislatures are often very hesitant to do anything when they do not what the federal government is going to do. they think we will legalize it and we will have to deal with all these prosecutions. maybe we should hang back and wait until we have clarification from the federal government. that is what he is trying to bully these states not moving forward into the a legalization effort. mr. fasman: last week you mentioned there was a sports betting case for the supreme court that could have ramifications for the cannabis business. now it is murphy vs.
11:27 am
is new jersey wants to legalize given. there is a lot at the if you do not have sports betting man, you r.nnot do it now, eve new jersey says that is unconstitutional. they can tell us individuals, they can say, marijuana is illegal, and states should not be able to legalize it because of the supremacy clause. that is not what the gambling law did. it adjust it at the state legislature -- it addressed it at the state legislature. should new jersey when, the say -- would bolster the case for a legalization of marijuana. it would not be a culture, but it would raise the profile of
11:28 am
the idea federalism. mr. fasman: 280e, to give the audience a brief explanation, what does it do and why is it there? forbidding, the law -- the law that bars marijuana businesses from claiming tax deductions? ms. minton: that is what you are going to have to ask the tax experts. mr. fasman: tell me where the sports betting case is now. ms. minton: the court heard arguments in december. i was there. surprisingly number of justices seemed so pathetic to new jersey and aggressive toward the federal, what the solicitor general did, and they did not seem to buy his argument. we are waiting. any day we could get a decision, any day up until june 25. mr. fasman: john, let's turn to you. we have a better picture of
11:29 am
adly trans-andbrothe momentum we are significant cannabis is support for legalization. americans, 64% of support the use, and even 80 to 90% support medical authorization. is one of the fastest evolving social issues, moving more quickly than gay marriage. you may recall five or six years ago that gay marriage would be so contentious, and it became mainstream and normalized. we see cannabis moving more quickly than that. that only a support for legalization growing, but the number of cannabis users and
11:30 am
consumers is going quickly. currently, at least based on the government's most recent national survey and drug use, over 20 million americans consumes cannabis regularly, and that is up six 2009. -- it is one out of 10 people in this room, actually double that. regular cannabis consumers come your neighbors, your coworkers, your friends. and when you have a regular or recreational cannabis consumer, it is difficult to demonize -- markets, is, in legal cannabis business is selling an extraordinarily large volume of cannabis. esther we estimate national sales top $8 billion.
11:31 am
in 2018 we are forecasting sales will reach $12 billion. by 2020 that was up to $17 billion. by 2025, in states that are just legal, you are looking at a $25 billion market. that is just sales to medical patients and recreational consumers. it is a huge legal, you are loog at market, and it is a huge market that is not creating new cannabis consumers, it just moving them into the legal market. i look at the statistics class 2011, cannabis else at our borders have fallen to 800,000 pounds is the legal markets have stood up domestically and americans have stopped and turned away from cannabis being imported. nursing this recognition that
11:32 am
when cannabis is legal, most consumers -- as long as the pricing is right -- prefer to get it through legal channels because you get better quality and more options. of get a good selection portfolio products. it feels like a regular, commercial activity. purchasing anything else you would in the consumer economy. your point about would happen if enforcement and fits were to enforce it, we suspect that if in communities people have access to legal cannabis -- getting that taken away well blessed a starter reduction in the having them in the first place. once you have a chance to not feel like a criminal if you are a cannabis consumer -- and yet large portion of americans consuming it legally, by legalizing it, you take away the
11:33 am
criminal element. most people do not want to get back to that market, because the pushback would be so strong. cannabis consumers are growing and demographically it -- is it among older americans? >> good question, a couple of ways to think about it. historically men have consumed womenis twice more than -- historically you have seen better cannabis use among younger age groups, under 35 consume cannabis twice the rate as those were 55. but you're seeing greater rates of adoption among. all populations. one of the reasons is because of the product forms of cannabis that is available. if cannabis is legalized -- in the pre-legal markets, a who smokef smokers
11:34 am
and joints or pipes, they have investment in infrastructure element art forms. the quality of vegetables is the ofiber -- the quality edibles, you have products that take away the consumption element of smoking. increased r&d going into product forms, and the markets, yettion -- you have communities who say i do not have to smoke it, i can apply a lotion to treat my arthritis. particularly health care costs are skyrocketing and people are looking for alternatives. can you generalize about what
11:35 am
states are doing with the tax revenue? absolutely, yet states like colorado, where they spent 40 million of its tax revenue towards school construction. in total, it is spending over 60 million in education and general. and as compelling when you think about the number of protests that have been held in places like west virginia, because there's not enough money to pay teachers and pay them raises. there's a lot of capital invested in health-related programs, from drug abuse generalt programs, to health of our communities. in a number of states are allocating a lot these revenues towards the general fund. of their state
11:36 am
budget to fill in some gaps. the numbers are significant. made 2014, colorado has really $750 million in cannabis taxes. last year it made a quarter of a billion dollars alone. these are significant numbers for state budgets i become what states are increasingly squeezed on the revenues. >> we see these initiatives go forth, is it sold as a tax benefit policy and liberty issue? >> is one of the important arguments -- 40 million cause in colorado is one of the ways to get them to buy into the bill. tax revenues has really been one of the ways in which this has been sold. but, we think social justice is another part of this. the decriminalization and recognition of the social equity
11:37 am
and which cannabis prohibition has been enforced. when you are four times more likely to get arrested for cannabis use when you are black -- even though cannabis conception rates are close between blacks and whites -- addressing that inequity has been an important aspect of this debate. >> john, let's turn to you. this industry has grown despite and talk about the federal bank restrictions. >> there's the internal revenue code that in its most basic terms says that if you are engaging in activity that is illegal in the context of drugs, are not entitled to the type of business reduction that would traditionally be eligible for. irony in american
11:38 am
policy that no matter what illegal activity you are engaging in, whether you are a ,annabis business in colorado or the mantra, or running a child prostitution ring, you are supposed to pay your federal taxes. it may be shocking that most child sex ring leaders do not pay federal taxes, but if they were willing to go to the irs with a bag of cash from a bunch of perverts, they would pay their taxes, do not get the types of deductions they want to build an addition to the house they are running a child sex ring out of. the federal government would say no, you're not entitled to deductions. i hope there is no one in this room who is thinking, those poor pedophiles. but for legal cannabis business, it is a serious issue, especially at the beginning at conception of a business. when you have tremendous capital needs, as i have tremendous tax
11:39 am
burdens. the business is usually sinking money into thinking they will .et bashed and have the ability to do that that come tax time. every other legal business in united states has access to those benefits. cannabis businesses don't. people out there who are fearful of big marijuana -- is easier for a large marijuana firm the absorbed those costs then it is for a mom and pop for them to absorb those costs. section 280 decrease this dynamic where businesses are getting hurt constantly. patients aren't customers are constantly, why? that,e when you cannot do you are paying the price at the point-of-sale. it raises prices across the industry. that because of anything the industry wants to do, but because of what the industry can't do, and it has effects on
11:40 am
the ability to displace the black market and has white raging effects across the industry and country. your question about banking restrictions, this august tighten. the they talkl of about how difficult it is to pay taxes when you are a cannabis business. if the state and federal level -- state treasurer's do not like you coming in with a big bag of cash or part of cash for some companies in order to pay your taxes. business doesa not have access to banking because of a treasury and federal reserve, and other regulations, they have to become a cash only business. the irony in all of this, and this is a real killer for me -- this all exists because of fears about money laundering. because of anti-money laundering policies in the united states -- there is no bigger facilitator
11:41 am
of money laundering and tax cheating that the united states government, because of the regulation that comes out of and a varietyes, of places, including the federal reserve. be cashre forced to only, it is easier for you to skip on taxes and much easier for you to launder money. while most of the industry is full of good actors who are well intentioned and want to be honest, genuine brokers and business owners, there are bad people in this industry to, and everyday cannabis businesses do not have access to banking is another day those bad players in the industry are going to outwit and outsmart people in this industry and the government, and do a lot of terrible things with the money they can stash. [applause] tell us how public policy and marijuana has evolved. policy in marijuana
11:42 am
has evolved in dramatic and interesting ways. if you would like to read about it, you can buy my book, available on amazon. [laughter] been something that i am not going to go through the whole arc of history, but you go through this period american history where the british crown required land owners to grow hemp at the time. it was fairly common in the 1800s, and then suddenly, this may come as a shock, the federal government recognized they can aacialized the policy, disenfranchise entered white americans against mexican americans coming across the border. boy, have times changed, haven't they? [laughter] marijuana, which sounded exotic and dangerous, turned to another community, and in the was the jazz movement. wasn't by accident that the
11:43 am
jazz movement tended to exist in new orleans and chicago and harlem. does not begin something to government could use to turn americans against black americans. beatniks in the the ne 60's, and then when richard nixon became president it was the jews were using marijuana. it was on tape, he said that. it was not because of harms and science because of our understandings of public health, but because of politics and racism and the ability to divide and get votes. is a we are at now position where states are saying no to this. legislators at the federal level are signaled to this, because they understand the history and substance, and they are looking at the landscape and saying, alcohol kills more people than cannabis. nicotine kills a hell of a lot
11:44 am
more people than cannabis. [applause] >> we as individuals can make better choices about this drug then a crazy man did at the bureau of narcotics the 1930's. >> tell us what he did. erae cut his teeth in the of prohibition, and he was ap or of j edgar hoover. he run the bureau of narcotics are almost the same amount of time as j edgar hoover ran the fbi. iswas in about our mission to develop cannabis to be the --duct that he could sell you could say, to the american public is something that is a problem. we see him writing in newspapers and academic journals, testified before congress about all the terrible things that cannabis does, and he should seem familiar to any cannabis users because you expressed the same problems.
11:45 am
you have committed rapes and murders, you have gone psychotic. for the white women in the audience coming up in the terrible thing of having sex with a man of color, if you used cannabis. these are things this meant literally sent to congress, in newspapers. it's good white america and people about what it meant to the fabric of society. was a master manipulator who turned this nation against a drug that had been part of society since before the founding. >> thank you. neil, we haven't had a business view. you are in the trenches. how does 280 affect you? on,ocal taxes can be passed but to 80 cannot. when you pay a rate of 80% or -- there isd pops no way for them to make anything if they are paying taxes.
11:46 am
maybe if you run a smart business and you are able to scale and pull single-digit butentages out of business, not enough to properly skill and reinvest into your business. it is an industry killer. it is there on purpose -- the federal government is using it to keep the industry small and poor. going back to the history of how to 80 began is actually an industrious regular in minneapolis who was arrested. uswent for some standard is for his cocaine, and methamphetamine business and he won. e, mayress passed t not take any standard business the actions. they never envisioned an industry like ours existing in
11:47 am
the early 80's when the past. e has been targeted since california passed proposition 215. is a bipartisan issue, clinton administration -- and those originally their policy to use 280 e that the struggle the industry into the grave. they slowed it down, but they haven't strangled us. >> what about regulations around banking? would you like to do that you can't do? >> we would like to use the bank. [applause] unions --se credit can you use credit unions? >> i have been used to share with everybody here. what are working closely with senator gardner on working on tax policy and banking.
11:48 am
this was historic news that came out last friday -- it is huge for us running how this goes forward. john was correct in saying that there is a ton of work to do to get legislation through the senate and the house and get us into a position where we might be able to significantly change federal law. as an industry -- the new fund is joining forces with the american trade association for cannabis and 10 and will form a new cannabis trade federation and expected resources to lobby the fight and try to pass this legislation and normalize the industry once and for all. [applause] new fund, about the what are its goals? >> coming out of the 2016 wections, we formed because saw a potential opportunity with copy hands of tax reform. sohave a very bad tax issue,
11:49 am
we thought as part of that was a coin flip shot, and we took the best shot we ever had to fix this horrible tax problem. we didn't get into copyists of tax reform -- comprehensive tax reform, but we are able to make a tremendous amount of progress and were poised to make real federal change. is what to take a lot of work and resources, and we are ready to go. >> tell us about the conversations you have on the hill. how do they differ depending on the political leaders that you are talking to and how you frame the issue? >> is interesting -- it is not a party issue, it is more of an age issue. you would be hard-pressed to find a republican on the hill under the age of 40 who is against us. i think when you take a look at this overall -- this is a bipartisan issue. is a social justice issue. it is a federalism issue.
11:50 am
it is across the board, a massive confiscation of wealth and personal rights. because of the state conflict, and the federal government is executing policies that is not allowed states to be the laboratory for democracy, we have nine states that opted for prohibition entirely, and the f 30 states that has radical marijuana laws on the books. this is only going one way. the federal government should step back and allow states to be laboratories of democracy. this guy is not falling, we are generating tons of tax revenue in states that have passed laws. opioid deaths are declining. working andnt is should continue, and the federal government should get out of the way. e was pulled back, or
11:51 am
what the scope look like? >> it would benefit the states. >> who are cannabis is best friends on the hill? >> people know. i don't want to leave anybody out. >> or are the best friends and where are the most productive conversations and what issues the most productive conversation? we have tons of productive conversations. was a nice try. if the gardener bill and schumer can to the floor, the expected the past? >> we are going to work hard to see it pass. >> is a federalism issue or prohibition issue? >> it is both, it is important that people look at it.
11:52 am
are others whoever thought of it as a federalism issue but it has been approached that way, meaning instead of sitting up and waiting that you have 218 house members and 60 centers, which is a long way -- it wouldn't have gotten close to the majority of the house and said, if there hadn't been successes in the states -- there is the fear of the unknown. one of the things that helps, i have worked on criminal performed issues, and texas did it first, saint will not put as many people in prison on all crimes. -- ander states go nobody lost an election in texas. that is pretty cool, and they just did it in georgia. and the one place that came up in a primary was one that was very conservative who voted for no justice reform, and was at that by someone who is more conservative because he was taking too much credit. so because he voted wrong, when people see that issue is safe politically -- and also
11:53 am
safe. if you are calling up cars in denver, they would go and see what that is. but that is not happening. this,umber of states to it becomes easier for other states to do it and for the federal government to say we recognize the concerns will had -- the concerns people had are not what they might be. your secret fence become not secret friends, because i was always on your site on this subject. the challenge is, and this is where you get to 280 e, the federal government for federal taxes says you cannot take any ordinary business deductions in paying your staff, rent, buying marijuana. tax cuts has helped the industry is because there
11:54 am
used to be a 35% tax, not on your profit, but a tax on your every dollar of sale. it is pretty rough. and you have to act to that and hire people and pay rent. now it is only 21%. it is less painful. if you care about federalism and the idea we have 50 states, and they should compete with each other to provide the best government at lowest cost, and people what to change the government if they are not doing good, or by moving if they have had with them. you could see were people moved to and out of -- so federalism allows states to decide what works and what doesn't. but the federal government through 280 e, interferes with federalism.
11:55 am
they say colorado, you have this, but we have this massive punitive tax that makes it difficult when you talk to an audience about it may not have an interest or care one way or the other. so how would you feel if school choice -- a scholarship or tax?er, faced a 35% excise deral governments it would have the income tax on income scholarship. you would in fact cripple and damage the ability to have 50 states try things. you want 50 states to try different things, and some work and some don't. some states serve as examples, but on a given issue, it may be good for them, or this is really working. >> have any states that
11:56 am
marijuana wrong so far? >> there's lots of ways to do something wrong. one of my least favorite is in nevada, where they said we want marijuana regulated like liquor, wine, spirits, beer. this is one of the stupidest way to suggest how to maximize the number of people who extract monopoly rents out of the system. >> unpack that a little for the audience. prohibition ond spirits, liquor, beer, wine, he said ok, states can decide how yous produced, marketed, are allowed to have three tiers. you have the store run it, the wholesaler, and they all managed liquor sales. and his wife you cannot get a
11:57 am
beer on sunday afternoon. and they have rules that nobody else wanted to put up with any other product. the guys and nevada and the people who run the wholesale distributors said, why will we run marijuana just like we do with spirits and run it through us? so we get to have a monopoly on the distribution. they put a few thousand bucks in the campaign and they were able to write the rules, and it passed. it is unfortunate. whohio you had five guys legalized it, and the suggested they have to buy from their land, and they didn't make it. left to watch out for people who write special interest in the state constitutions as you are changing this. washington state runs like it is selling stuff out of the post office, and have private sector competitors. again, you look at that and say, don't do that, and move that way.
11:58 am
i would stay away from treating this the way we treat spirits and wine and beer. that is the best model. it is slightly better than prohibition -- that is not where you want to get stuck. >> let me ask you question, who does it well? >> colorado. -- usually theng first two guys, don't do that, and now we know what we are doing. colorado right now. >> colorado has the least relation? >> and they promised there would only be one level of tax. and there are levels of taxes, that was a dirty trick, they said they wouldn't do it, but you have to keep an eye on the government because they tax everything. >> we have a few minutes left,
11:59 am
and outlook to open it to -- and i would like to open it to questions. tax am wondering what the applications are for a with dispensaries or cultivators if they want legal advice or want help with marketing? how are those businesses able to navigate the tax? would they be able to put money in banks? >> if you are not trafficking and cannabis, 280 does not apply. >> other questions? questions? >> [indiscernible] i think there is a microphone coming to you. >> that will work better. thank you. i am a libertarian running for congress and district four in maryland. i am curious about the implications of say we were not
12:00 pm
that built through, for example, what are the repercussions -- not repercussions but results of bying to get rid of 280 e itself if we were not able to do more of what we want to do in other areas? for anybody? gardnerf what negotiated with trump, the way they are doing it, you would end up with 280 e side tracked and the ability to bank restored because you take marijuana off there is a great deal of respect. he put a hold on every single appointment, nomination in the justice department, which got the attention of the number one appointment of modernizing the
12:01 pm
approach towards marijuana and took them out of the debate and went directly to discuss things with trump. we had an agreement that should move forward. it sells those two problems. -- it solves those two problems. schumer's negotiation goes further and salsa the challenges. >> one of the reasons why addressing this to 80 e is more is more- this 280e urgent is because of the dynamics. if you look at the well-regulated market, the average also prices by this date legislature from cultivators -- the average price per pound has tolen from $2000 a pound $5,000 a pound in three years. it was one thing when your margins were very high and when that yourst launched could take on that 80% tax and skim a little off the top and
12:02 pm
get a little out of the exhaust pipe. once you hit $20,000 a pound, a lot of folks were getting squeezed out. it is much less tenable to companiesen a lot of have said to break even point at that. -- bad on top of that back you add on top of that breaking point and you have this 80% federal tax, and if this does not address -- get addressed soon, you will see a lot of small and medium-sized operators struggle to make it to the next couple of cycles. >> can i answer that quickly? i think one of the benefits of chuck schumer's bill, if you are a cannabis at the kid, is not -- advocate is not a chance of passage. it will not pass congress, period. sessions will not let it out of the rules committee were passed as congress. here is what it does, it signals
12:03 pm
to other senate democratic colleagues and other house in the credit colleagues, i am the strongest leader in this party right now. you have cover. you.is an ok issue for in discussing it, he said, i lifted the polling. i am paraphrasing. that is a benefit moving forward. chuck schumer's not looking at his bill at this congress but the next, where maybe the house is controlled by democrats, it will be controlled by a different speaker in the next congress. perhaps there is a new rules committee chair, etc., etc. that can move the needle a little bit and that is part of the game. , in mys of 280e conversations with legislators and their staff, and brookings is not lobby these, it is a conversation, they will talk to an old white man, look up the
12:04 pm
medical research, or let me discuss out marijuana actually works. they do not know anything about this but they know about business and taxes. they understand the interaction of them. in my conversations, they get this more than other issues in the space. >> i went to bet you want a dinner it will get through this congress. >> i will take your money and dinner. >> other questions? yes, right there. >> hello. andrew santo. i was wondering how much support the industry is getting from banks and lenders and regulatory institutions that can not necessarily supported legally at -- support it legally yet? how much are you expecting when federal changes? >> i think you will see a lot with chambers of commerce because they recognize this as what they are, small businesses. either you have lawyers who cannot in certain states work
12:05 pm
with them because they are professional organizations or engaging in illicit activities. once the federal law goes away, you will see in certain areas professional organizations and quick turns towards supporting the organization. willest of the country come slower. john mentioned as they see that potheads are not cheech and chong, they are nancy down the street with a coworker i work with that shows up with that 9:00 a.m., and they leave at 5:00. >> we have time for one more. let's get you a microphone. >> how are you? with this states that have already federally or excuse me, recreationally passed cannabis and medically, how do we prevent monopoly from happening across the united states from the states that have already had it happen? >> by not letting the government
12:06 pm
get in the wake of entry. the only monopolies we had in the country are the ones the government created. at&t had to compete with other companies until they pass that monopoly. they do not have one until they got that law. it is a natural monopoly. post office does fairly well against competitors on first class mail because there are not any or you go to jail. not so out on parcels. just get the government out of you cannot -- the more they allowed limits, like occupational licensing, you do not want the government telling people they cannot go into a business with taxes being high barriers to entry. take those taxes down and get the regulatory barrier to entry down. and then you just do not end up with that problem because there is so much index that people who
12:07 pm
come in and start and stop, whenever you try to fix things, the guys who are already in decide to use the rules as a lot to keep others out, and then you end up with monopolies or quasi monopolies. >> i think it was hit on with the alcohol industry. >> do not do that. >> i have been hearing from this to bidders in the alcohol industry for years, saying they need to get the sale with marijuana because craft beers have been declining. until the last 10 years or so, you saw huge monopolies and beer. it was mostly by three companies. the reason is because each of the states decided to go with distributors and said, you produce beer, you sell it at retail, and you cannot talk to each other. you have to go to a distributor and that gave them a lot of
12:08 pm
money because they control the industry and it allowed them to make a lot of money and pay politicians and give them donations, and keep the laws the way they are and keep competitors locked into certain areas. we do not want to see that with marijuana happening, so hopefully marijuana will learn a lesson when they see surrounding states doing better. >> i had the evoke slashing highlight -- evil flashing lights, please join me in thanking this panel. [applause]
12:09 pm
>> good afternoon. i am pleased to be here today on behalf of the minor authority -- tradety cannabis organization, the only fighting for the economic empowerment of minority owned businesses in the cannabis industry. drugs is a racist war. it continues to disproportionately impact communities of color, devastating entire generations and families. here, in the district of columbia, prior to legalization, equale equal grace -- amount of marijuana use across
12:10 pm
all races, african-americans were eight times more likely to be stopped, harassed, and arrested for marijuana possession than their white neighbors. the institution was founded, naacp and other organizations laid the groundwork toward what we are working to today. 10 years ago at the age of 35, our keynote speaker was elected as the youngest ever president and ceo of the naacp. today, he is running for governor of the state of maryland. a state where despite one of the largest african-american populations in the united states, no entrepreneurs a color received licenses for medical marijuana cultivation. our speaker once said, we do not owe allegiance to any candidates because they share our party or color but because they share our principles and our conscience. i would like to borrow those
12:11 pm
words and consciousness today. -- caution us today. we allegiance to any industry because they share our pledge of color but because they share our principles and conscience. with that, it is my distinct honor to welcome to the stage civil rights activist, scholar, and 2018 element gubernatorial candidate mr. benjamin jealous -- mr. benjamin. [applause] >> good afternoon. i think it is afternoon. it is great to begin with you. i am the former national president of the naacp and candidate for governor of maryland. i want to thank the host this morning, the host of perception shonda, and i also
12:12 pm
want to thank caroline phillips and the national cannabis festival for pulling the event together and having me as keynote speaker. i want to talk today about what we have all lived through and how we get to a better place. the war on drugs has failed us and we can do much better as a country. remember the day when i was in friend's 21sts my birthday party and around a toast went up. the first was to our friend for before 21 and the next, it crossed the line, it turned into libations of memory for all of our friends who had been shot, killed, sent to prison before we got to college. and then trying to turn the mood factd, someone tested the
12:13 pm
that one more of us, one more young men of color in america had survived to 21. i could not raise my glass on that last toast. the emotion cut me like a knife, the notion that somebody thought it was an achievement for a member of any group. this, the world's greatest democracy, to breathe past their 21st birthday. it sent me reeling. i did not sleep for days. ultimately, i am so blessed to be able to do what i do. my grandma is a 101-year-old social worker. she is a third-generation member of the naacp. she is the grillo in our family -- she carries 200 years of
12:14 pm
stores with her, those inherited from her grandparents, born went to my i grandmothers table and said, grandma, what went wrong? we were -- you told me we were the children of the dream and we would need of first generation to be judged purely based on our colorter, not on our skin or our gender, or what public housing projects our family comes out of. my mom grew up in, homes housing project the first half of her childhood. grandma, you know, you said all we had to do was keep our nose clean and walk a straight line, and everything with the ok. you know, grandma, it has worked ok for me but not well for most of my generation because we had come of age in time to find ourselves the most incarcerated people on the planet.
12:15 pm
by that, i mean americans of all colors. 25% of the worlds prisoners, 5% of the world's paper, have the most brown and black people incarcerated and the most white people incarcerated. -- do not pretend this is an issue that does not affect all of us. [applause] particular, in black men, the most murdered in the country. grandma, what went wrong? she looked at me and she said, got, sad but simple, we what we fought for but we lost what we had. we got the right to live in any community we could afford to live in. gotlandople in america by the thousands of acres, every month, every week, every decade,
12:16 pm
from the start of world war ii until the end of the cold war, and has only slow down in recent decades because there isn't much more land left to lose. we got the right police officers. my grandfather slapped as a probation officer in baltimore for three decades. we lost the right to live in safe communities. right to send our kids to any school in town. to assume theyht would be loved it welcomed the way my grandmother had been on my mom had been at the public schools and in the public housing sector she grew up in during segregation. you know, i -- my grandmother's comments set me deep inside myself trying to figure out what had went wrong. f i realized forou generation -- i realized for four generations, from a grandmother's parents being born slaves, to be members
12:17 pm
of the naacp, we fought segregation, and we had done better. than he got to my generation and it was optional. protested the ones, but we killed all the big dragons -- protest all the ones, that we killed all the big dragons and you don't need to fight anything. while things have stopped getting better and they had gone from worst to worse. i committed that night i would figure out what i would fight for. my grandmother made it clear she did not think the generation knew what it was fighting for or understood what had gained. i wrote down all the things that made me upset about my country, my community, my county, my state, and i ended up with six things that would pretty good. i was like, i can only fight for one and a half to be focused on something. i flipped it over. my grandfather always said to not let the perfect get in the way of the good.
12:18 pm
the all good so i wrote them all down and spend the sheep around and drew a circle. whatever i circle that is what i will fight for. and it said injustice in the justice system, and i had no idea to do that. at least i did not have to worry about all the other thing. yourself tomit really winning a battle. when you say this is the one thing i am going to achieve, a little light goes in on -- goes on inside of you. one day you might be preaching and you say, that sister or brother is on fire but at first, it is like the old knee grow spiritual -- negro spiritual this little light of mine. i'm sure which appears have experienced this. your dream this not make sense to anybody else but you can see the next step, so i kept following it. eventually, that might got brighter, it empowered me to play a role in abolishing the
12:19 pm
death penalty in six states, for juveniles completely. working with the governor of georgia to shrink his prison system, down now more than 25% in the last three years. [applause] preparing to run for governor, it was clear i would rollout a criminal justice reform strategy. i am the only person in the history of maryland that anybody can find who is run for governor and put out a strategy to shrink our prisons. it was clear with my family rooted with where the uprisings occurred in the wake of freddie gray, killing, murder, that would put something out there policing, and it wasn't clear just how far i was going to go, whether or not i would call for the legalization of cannabis. but i believe it is important to
12:20 pm
listen before you lead. i went out there and i listened. i listened to the handy man who was driving me to the airport, deacon inlliant man, his church, approaching 60 years old, handymen, and i said, you are so brilliant. whyyou read your church, are you working as a handyman? he said, i spent most of my life working in hospitals and when the chain's marriage, they find -- when the chain or just they found when i was 22 years old, a police officer arrested me for having one marijuana seed in my vicinity. ashtray atwas in an my friends house but the officer saw it and thought it must be mine. i cannot get it off of my records and they fire me every time a new company buys the chain i working for. i was tired of the indignity so
12:21 pm
i work as a handyman. i listened to the police officers across baltimore. one of the researchers on our team is a former lieutenant, 15 years on the force, and to go out and listen to your peers and tell them what is going on with the killings in our city because they were spiraling out of control. he came back and said, there are two things that they could agree on, one, nobody was sure why they were spiraling so high the last years. the three years are starting to level off, but they were two that it was out of control. but the agreed in the last 10 years, half the killings appear to have been one set of marijuana dealers killing another sect of marijuana dealers. -- set of marijuana dealers. he said they all agreed. was it from neighborhoods? he said, no, it was across the state. it made sense.
12:22 pm
criminology. violence and the drug trade is often about territory. and when a drug is easy to source, your territory gets infringement. and so when i rolled out my criminal justice strategy, i called for the full legalization of cannabis in maryland for adult use. [applause] bloodshed to stop the being deregulated by bullets, we have to regulate it by law. if we want to make sure that men like that church deacon are not relegated to being a handyman, there we have to expunge people's records . once we legalize it, we should
12:23 pm
not carry on the books that you have been convicted of something illegal. -- people's records. it, we shouldze not carry on the books that you have been convicted of something legal. we had to learn from d.c. and learn the cultivation for small peopleal views, some do not have to buy from corporations and eventually tax the process. we have to learn from colorado that unless you are willing to reform the police and how it is done simultaneously, the disparities in enforcement will continue. [applause] courageave to have the to learn from maryland own experience and say it is time to take the bias out of how these licenses are issued. [applause] to get serious about making sure that the communities that have been most
12:24 pm
negatively impacted by the war on drugs are treated fairly. i do not just believe we should have the inclusive in who gets licenses to own, distribute, cultivate. i think we should have what is known as micro zip code targeting as far as work preferences. to say, if you come from neighborhoods at the epicenter of the war on drugs, you qualify to be an employee and we will give you a leg up in the process. because this cannot simply be a case of the rich get richer. [applause] i am proud to be one of the leading candidates in the race for governor in maryland. if you are in maryland, i hope to earn your boat. we have never seen -- i hope to earn your vote. we have never seen what it is like to have a civil rights
12:25 pm
leader become governor in any state. [applause] and i hope to have the opportunity to show you just how transformative that will be. thank you and god bless. [applause] >> hello. drugan associate at the policy alliance is an d.c. i work with advanced drug policies and policies that repair the generational harm that black and brown communities have faced due to the war on
12:26 pm
drugs. marijuana legalization of classic states and on the federal level is on the horizons. how do we reconcile the way that they use, possession and sale of this plant? a plant that many of us know personally as a healing agent? hasdo you reconcile that it served as a tool of violence against back and brown communities, families and individuals? the only have a second to do so but as i introduce the next panel and moderator, we hope because ofves lost this relentless in force of marijuana prohibition ends. to fail to act is a question the next panel poses. to call for marijuana legalization without a conversation about dismantling
12:27 pm
the criminal justice system, without a conversation on policing and reparations, is immoral. i am thrilled to hear the group of experts unpack what we need to hear as we embrace this growing industry. with that, it is my pleasure to ramella -- can cannabis heal our broken criminal justice system? [applause] >> we have a really great handle. ciaramella, i am a reporter for criminal justice in reason magazine. i will let everyone go down the line to introduce themselves and learn a little about them. they name is niambe,
12:28 pm
soghter of peter mcintosh, also the sister of jawara mcintosh. all of us have heard communities that have been affected this war on drugs. when i think of my brother's story, it is important to know what that looks like and what it felt like for my family. when my brother was arrested in new jersey, in 2013 on father's day weekend, we got a call and you he was arrested. i thought this would pass. it was not until six months later when he had his first hearing in court, so he sat in and hadh other inmates to stay there for six months before we knew what he was charged for. uping that time, we showed
12:29 pm
with my family, my mom, and saw correctional officers, very rude to families and to the inmates. that is only heard the prosecution say that, would you accept a 20 year plea? think,mind blowing to wow, that is when it was real. that is when it's real that this is what is happening in communities. three months later he finally was able to make bail. thats not until, even at point -- he went back-and-forth to new jersey for three years, pretrial , going back and forth when we
12:30 pm
lived in boston. a plea,accepted wanting to get this behind them. december ofit in 2016. in january of 2017 he turned himself in and went back to jail. he was expected to only serve six months. i month and a half in he was brutally attacked by another inmate in jail and suffered a severe brain injury. to this day he is still in the hospital. unable to communicate for himself, unable to do anything for himself. he was an advocate for cannabis. he was heavily spiritual, and musician as well. he was a father of four children. how families at and what that means when you
12:31 pm
hear that phrase that is being thrown out throughout this panel , i want you to understand when you hear about that incarcerated population, it is more than we can imagine. it is worse than what we think. how to change policy to affect these families in a positive manner and bring these families out of this devastation. we have to think a lot more critically about how to support other people in this situation. [applause] i am clark neilly, the head of the criminal justice department at the cato institute. before that i was with the libertarian public interest law i liberatedthe --
12:32 pm
cases for almost 20 years. -- litigated cases from us 20 years. it is important to understand what we have done to the constitution and to the institution of our criminal justice system by enforcing marijuana laws. when you authorize the government to do violence to people, when you authorize the government to put people in cages for no good reason, and i think an increasing number of people are realizing that is the case with marijuana prohibition. there is no good reason for criminalizing that activity. there is no good reason for doing violence to people who do not obey that law and there is no good reason for incarcerating or killing people who have violated those laws. we are realizing that, a lot of us have known that all along. mainstream politicians are beginning to acknowledge it and that leaves us with a number of difficult questions. we will talk about some of those. some of them are, how do we go
12:33 pm
forward to melinda we do about forward, what do we do about the past, how can we begin to repair our justice system and repair the relationship between law-enforcement and communities that law enforcement was meant to serve and they had devoted so much of their attention to supporting an unjust and immoral law. we can't give up a we have to recognize the difficulty of the path ahead. ,> my name is kayvan khalabari im and 2019 candidate for mayor of denver. a business owner across the spectrum of businesses. i have 13 that cover the space of cannabis in five states, comedy production, arts magazines, other things. i started as a cannabis policy reform volunteer about 15 years ago. that's how i got involved in the industry in denver. that was my entry point into
12:34 pm
more than the consumption side of things. as my businesses grew i always had them act as advocates for drug policy reform and the decriminalization of other public health concerns like homelessness and sex work and things of that nature. as i have gotten further into the cannabis space and worked with larger companies and more folks with means, which we will talk about later. the path of the cannabis industry is an unfortunate one when it comes to the regulated side of things and the lack of participation we have from people who have been disenfranchised by the war on drugs. i'm starting to divest some of my interest in the business side and focus more on my advocacy. part of that is being the chairman of the board of the northern cannabis business association which created state model legislation last year and is working on municipal ordinances that help our lawmakers understand that just
12:35 pm
because we have legalized does not mean we have fixed things and that there is a lot we need to undo to garner participation from people of color, especially in ownership and in support roles. beo that our tax money will -- that are collected are being wasted and spent inappropriately. that does moneys go to help positively impact the folks who have been thrown under the bus by the war on drugs and that is part of this mayoral campaign is getting beyond -- a lot of what we are seeing in denver which is a microcosm of the country, which is this corporate liberal mentality of money first and special interests first and people last. i'm hoping to inject some life into a different conversation there. [applause] my name is shaleen title and i'm the commissioner for the massachusetts cannabis control commission which is the state regulating agency that is
12:36 pm
implementing the legal marijuana program there. the somewhat unusual path i took to get to that point was as an activist over the past 15 years. i started out as a college student in the movement with students for sensible drug policy, as many speakers and audience members here are also a part of. forayed with students sensible drug policy through my masters degree and my law degree. when i graduated i joined the movement full-time. i was lucky enough to work on the colorado campaign to legalize marijuana for the first time. i briefly practiced marijuana business law. i really wanted to find a new way to help get the marijuana industry more diverse, to get more women and people of color matched up with opportunities, so i cofounded a diversity and inclusion focused recruiting firm.
12:37 pm
as part of the minority cannabis business association i worked on a model bill to help provide a process of reinvestment and reconciliation in state policy. part of that was used as an inspiration in the massachusetts ,allot question in 2016 provided that the regulated toncy would find a way promote and include communities that had been disproportionately harmed by the war on drugs into the industry. it did not specify how. i helped to write that language and the joke was on me because i am now part of that regulating agency that has to figure out how to do that. my current position is broadly working on how to safely and responsibly regulate the marijuana industry, but specifically to turn these concepts that i think most people agree on in terms of criminal justice reform and giving communities a fair shot
12:38 pm
into practical policy that can be enforced in a way that is logical and transparent. >> very good. [applause] good afternoon. i have eric sterling the executive director of the criminal justice policy foundation. , i am 68 yearsg old, 50 years ago i first started smoking marijuana. as a college freshman. [applause] i first testified for marijuana decriminalization in 1976 when i was a law student in pennsylvania. 442 years of my career as a lawyer i have been an advocate for reform in one form -- for 42 years of my career as a lawyer i
12:39 pm
have been an advocate for reform in one form or another. i had the amazing opportunity to get hired by the house judicial in 79tee, crime committee to write federal law and became a colonel in the war on drugs as a house democrat during the reagan years. boarded medical cannabis that became one of my responsibilities to learn about medical cannabis and become an advocate for that. the firstob randall, legal federal patient, start the alliance for cannabis therapeutics. it was an apartment on eight street. i have to give the cato institute credit. they ran seminars during the 80's in their office across from the library of congress and i would go over during lunchtime to get indoctrinated.
12:40 pm
in 1989 when i started the criminal justice policy foundation it was clear that we needed many different aspects of reform. i helped create the families against mandatory minimums to fight mandatory minimums. i helped start the marijuana policy project. other groups i have been involved in -- in 2013, governor o'malley named me as maryland medical state cannabis commissioner. i was a medical cannabis bureaucrat for four years. i will simply say that i am concerned, i have learned over ofse years that the heart the criminal justice system is about the dehumanization of offenders. i hope we will be talking about what the reform of that might mean. i am so proud to be with these distinguished panelists at the first national cannabis policy 420it here at the museum on
12:41 pm
. [applause] >> awesome. we heard a little bit from niambe about what the drug war looks like on a personal and family level. a lot of people seem to think that marijuana is becoming normalized and is not a big deal and that people are going to aren't going to jail for this. it is still a driver of a massive amount of interactions with the criminal justice system. before we get into the ways to fix that and restore communities, i want to ask clark and eric about the bigger picture of what the drug war looks like now and how marijuana is still driving a lot of these interactions with criminal justice. that's an extraordinarily important issue to focus on. , there of you may know
12:42 pm
are more marijuana related arrests in 2017 than for all violent crimes combined. you have law-enforcement enforcement dedicating its resources and its attention to a total nonissue well the national clearance rate for all violent crimes is less than 50%. the national clearance rate for homicides 50 years ago was 90%, now it is down to 61% and in like baltimore it is far below that. the existence of marijuana laws on the books has an effect of incentivizing law enforcement to engage in what was activity -- pointless activity. it increases the contact between law-enforcement and citizens in dangerous and broad circumstances. for those who remember for landon castille -- phi
12:43 pm
castille. the officer that shot him testified he became afraid because he smelled marijuana in the car. he said that someone who smoked marijuana in front of his girlfriend and child must be a deadly dangerous criminal. it would be impossible to list the ways in which the existence of marijuana laws fundamentally apologizes the criminal -- pathologizes the criminal justice system. i think you laid it out very clearly. enormous lee wasted resources -- enormously wasted resources and the norm is cost -- enormous cost to civilians. dehumanization, it is part of the legislature pots on -- legislature's --
12:44 pm
the moral authority of our government to take our liberty away is only when the conduct is wrongful, that it hurts other people. you are abusing their rights. everyone in our audience understands that to use cannabis is not wrongful. will authorize the police to take our liberty away and that the police will so readily do this. the prosecution will do this in the name of the law. reflect on our whole understanding of what the power of the law is has become distorted in society. our work in reforming cannabis laws shines a light on, what is the authority of lawmakers. what is the legitimacy? it is highly destructive. the legitimized all of law enforcement by its
12:45 pm
enthusiasm to embrace this wrong law. timized all of law enforcement by its enthusiasm to embrace this wrong law. >> you are from massachusetts. there was a discussion when they were talking about legalization about what should be done to restore, how much of this money should go back into the communities that have been affected by the drug war. now marijuana bureaucrat and an activist i would like to hear your perspective on that debate and what solutions have been proposed and what is being done. >> sure. let me say first that i think a really interesting side conversation that has been touched upon is, when we have these brand-new agencies starting from scratch thinking about policies it gets you thinking about how we can be more modern in the way we enact policy and in terms of civic engagement.
12:46 pm
when our agency gets feedback from people we try to be as modern as possible. i am unappointed government official but i am still an activist and i am still in millennial and i get a lot of information from places like twitter, i know a lot about marijuana and i don't know much about anything else because i've been focused on marijuana for so long. absolutely don't know everything. when we are looking at a policy we will get as much feedback as possible. we certainly want feedback from people in the underground market. don't want to talk about those communities like they are not there. i will often get tweets from people who say they are in the underground market and what something looks like and make a decision based on that. , imassachusetts we have would say there are three main ways we have chosen to address this. weaverst way is trying to into every decision that we make
12:47 pm
the fact that we want to encourage small businesses and people who might be in the underground market. when i was a practicing marijuana business lawyer, back when the medical program in massachusetts had just passed, people would come into my office and say i want to be enough for a newer, can you give me a cup entrepreneur, can you give me a consultation? a $20,000y there is application fee that is nonrefundable. when you are charging these huge application fees, you are charging for packing software, there is no way to find funding in the program still meet anything. we were careful to stop at every decision and think about how we can encourage small businesses. number two, the econ empowerment priority program we have in massachusetts is a way to ensure that the industry gets started
12:48 pm
off on the right foot. , existing medical enter the industry because they're already started and know how to plant. we also want to make sure that that have a market advantage are people who have demonstrated that work with these communities and they have good business practices. that is something the institute in massachusetts -- the headline was sunday -- deadline was sunday and we are going to these applications and looking for businesses that can demonstrate that they have this past experience to go first. third, we have an equity program that is not about going first. it is an ongoing program. the idea is, if you are from a community that has been disproportionately harmed by prohibition and these communities who are designated through a study, we commissioned
12:49 pm
looking at arrest data throughout massachusetts before and after decriminalization, if you are from one of those communities or if you have a drug conviction, or if a parent or spouse had a drug conviction, we want to give you some extra help. you would have help finding funding, technical assistance on filling out applications, and ongoing business health. those are the three programs. very much a is groundbreaking area of policy that is going on around the country. i am open to having a dialogue with other activists and agencies who are looking into this. if you want to see what massachusetts did, we have put forward a lot of guidance and summaries. if you go to masscannabis control.com and click on guidance you can see these programs. >> shall he has done great work.
12:50 pm
een has done great work. one of the things we have done is highlighted the gap between that population that is devastated and make sure they have access. them to be ar business owner and have the support if there is no -- to parents in the household. when you are trying to run a business these are the gaps that exist. we want to figure out how we fill those gaps. people are starting from below ground zero. want to make sure that we are intentional about not only as we start to create legislation around getting people into the business, we should also look at how we
12:51 pm
support these communities. what programs do we put in place to help the youth that are affected by these communities. because they don't have a father in the home or because their parent is dealing with some other aspect, that they can grow up and be emotionally supported. i have four nieces and nephews that now have to visit their father in the hospital. echodoes support look like -- like? with a think about simple things that are privileged. when you can go to summer camp and afford to go to summer camp. when you can do simple things like go to school and have a space for you could do homework, because maybe your family can't afford to have a house that is big enough for you to have a quiet space to have the simple luxuries that we overlook.
12:52 pm
someone joked and said, we cannot use any of these tax revenues to build a playground. i said, why not? those are things that we take for granted when you have this kind of privilege of having simple normality in your life. there are a lot of us that when you are living in these particular communities, they don't exist. we have to have a lens on supporting the nonprofits that are providing these programs to the communities. supporting the nonprofits that also, programs for enrichment in school. look at how we can support public school. i just read the headlines in the summer and it was like, 50% budget cuts. all of the programs, music programs, all things that are outlets for students that are affected by it this being cut and now it is back to basics.
12:53 pm
you have kids that don't want to come to school. they had a reason to come to school and now they don't want to because these programs are being cut. i know the business side is very important but there is going to be a cap if we don't uplift -- gap if we don't uplift those communities. [applause] you were speaking forcefully about this earlier. when i look at the radical bills in the senate and the stocks in -- the stuff is cynthia nixon is proposing. andxpungement of enough what other things -- is expungement enough and what are other things we need to think about with legalization and how we use those funds and how that affects these communities that have been ravaged by the drug war. they have done expungement
12:54 pm
clinics up and down the west coast where we pay for the legal fees associated with getting your record expunged. in a state like colorado you can't get your record expunged and less you incurred them as a minor. otherwise you can do record ceiling. if ucla record -- if you seal a record, if it is cannabis you are better off keeping that up your record. i have been disappointed in colorado and denver and how we spent our tax money. into votingswindled for legalization based on the first $40 million going to school construction. on the surface it sounds great, but where we need money in schools is in teacher salaries and school supplies. [applause] which is not happening. that money is not going there. it is going to contractors that are being overpaid to do capital projects for schools that don't need them. i think we have lost sight of all of the things that are still broken after legalization.
12:55 pm
as somebody that has been involved for 13 years and then entered into the entrepreneurial space, i've seen sony people that were on the same path as me totally forget about their roots in advocacy. to know that in colorado still we have a racial disparity when it comes to arrests and citations associated with public consumption. why are people being arrested and cited for public consumption, because it'll have places to consume -- we don't have places to consume cannabis. why are they people of color? because that is where cops patrol. we had the distance requirements on 1000 feet from the perimeter of the schools, we thought that was reasonable. when the city went to rulemaking added parks and rec centers, treatment centers, playgrounds, pools, until the only places open theseuld
12:56 pm
establishments were in the same poor neighborhood still the people of color that the city had just said were too concentrated with cannabis businesses. on the public consumption peace, hoa and landlords, we have no home ownership and -- in denver because the cost has increased. people are renting and they are getting kicked out for using a legal substance. there are people who live in subsidized housing who can't consume cannabis. we have terrorists that visit to use cannabis who can't use it legally. fighting topeople use full strength out the hall in our parts. we have a mayor who has never set foot in a regulated cannabis business. there are all these things that are so broken that we are focusing on.
12:57 pm
a lot of that goes back into the schools. public school system in denver is 80% of people of color, our charter school are a lot more white. the schools have become ground zero for crackdowns on cannabis possession. we have drug dogs go into public school. kids are getting expelled and suspended. we know that is not a way for children to get an education. these of got up since legalization and nobody seems to be talking about that. >> we did an investigation into drug-free school zones in tennessee. of arrests are in 1000 foot drug-free zones. those carry enhanced sentences which can make you go to jail for longer. these are part of these overlapping problems. i want to pick up on the expungement please.
12:58 pm
expungement is good but it does not get to the heart of the matter. what we need is what i call clean slate laws. ,hich is that, after five years by law, you have no record. we say that it goes away. situation --is a with modern data you never lose your sentence. we must have a process that says, there is a period at the end of the sentence. freematter of law, you are of any consequence of having once had a conviction. you get to say it and we treated that way. [applause] have any jurisdictions tried that? >> no. we have not gotten that far. this is not been sufficiently articulated.
12:59 pm
it still reflects this fear in society around who are the offenders. the offenders are all of us. there is nothing in particular about the background of this former offender as opposed to someone who is not yet an offender that means we should stigmatize them and set them up for a special concern. in maryland, our state cannabis law says that if you have a drug conviction you cannot work in the industry. if you have it county drug conviction. -- a felony drug conviction. these kinds of laws reflect the legislature's suspicion of patients. they were suspicious of patients and their doctors and they were deeply suspicious of people going into the industry. in maryland we are way over regulated. having incredibly
1:00 pm
complicated rules in guarding security-- regarding because there is some fear of dishonesty that is greater than any other industry. >> in colorado we have created 30,000 regulated market jobs, we also probably took away 20,000 from folks who are relying on distribute and cannabis on a small level to make ends meet because they have issues binding traditional jobs because of the criminal records. as someone that has been on the ground floor of 14 different jurisdictions that have executed these legalization laws, people are not talking about equity, they are not talking about reinvesting in these communities , because everybody is reinventing the wheel talking about, what about the kids, what about driving, what about packaging. all the things these jurisdictions have already figured out. if they take their lessons, tildes eagle to shut up, and evolve the conversation -- tell those people to shut up and
1:01 pm
evolve the conversation. getting traction because those few loud people are getting all the attention. >> i want to go back to one question then we will go to a qa day. -- q and a. in new york city, 86% of marijuana arrests were minorities. which is a pretty stunning number. there were about 16,000 of them. would you mind talking about policing? i wanted on what the bias. there is bias in policing and the industry itself would licenses and things like that. i wondered if you would talk about that. >> there is no question that marijuana laws -- the police suspected that a particular person is a bad person and they engage in a lot of criminal activity but they can't prove it. the marijuana prohibition becomes low hanging fruit.
1:02 pm
we can get the person for what they claim they did that we can bust them for marijuana. you mentioned the drug-free schools on situation in tennessee. reason reported that in some settings, law enforcement when they are setting someone up to a confidential informant to do a drug by, the confidential informant will propose moving the transaction into a school zone in order to enhance the penalty which starts to look a lot like entrapment and probably is a form of entrapment. having a marijuana law on the books to facilitate this kind of blatantly immoral policing by proxy where you are saying, i think you are a bad person but i can't get you for the thing i think you did, so i'm going to jam you up on a marijuana charge . there is a great deal at stake for the defendant. the cops get paid overtime. in montgomery county, maryland
1:03 pm
the cops get an automatic three hours of overtime pay because they are excused by the prosecutor. every time their cases call their getting overtime pay. they call for backup, they all get subpoenaed, they all show up for the court date. it is called callers for dollars. marijuana prohibition is like a swiss army knife for law enforcement. if i am a cop and i have a suspicion that these people are dirty and i get them out of the car and searched the trunk and i find contraband, i find weapons, i find burglary tools. how do i justify that? while i smelled marijuana, i was looking for marijuana. when marijuana is legalized, this allows the fourth amendment -- this loophole that allows the
1:04 pm
fourth amendment to be violated will be removed. [applause] , we must add one thing fortalk about collars dollars without talking about policing for profit which refers to civil forfeiture. a process by which people can -- police can take your property by merely alleging it was involved in criminal activity but never actually proving it. civil forfeiture is one of the most corrupt and corrupting policies in america today. there is no question that marijuana prohibition is a gateway crime for substantial amounts of civil forfeiture. [applause] do not take large amounts of money through the airport. they will take it from you. we have about 10 minutes left. i'm sure you guys have great questions for our panelists. we have microphones out here. you right there.
1:05 pm
do we have microphones coming around? they are coming. how are you guys doing? so, 13 to 15 years ago for shaleen and eric, before i was born. , now thoseears millennials are now 27 to 30 years old. has been left, what foundation has been left for anyone to see what you have done with your grassroots in order to go back and door to door to inform people of what is going on. i ask because d.c. in the past 31 days we have had for expungement events.
1:06 pm
i live in one of the last wards standing due to denture vacation. no one was informed. -- gentrification. no one was informed. the council is having an expungement clinic right now and mayor bowser did not inform anyone. where is the disconnect, how can we stop it from happening, who is speaking on behalf of of the minorities and the people in these communities? if we don't have social media i wouldn't be here. we don't know. [applause] short answer is that the government does a crappy job of publicizing its own events. i see it all the time in my county. official events are not well publicized. you have to be following things very closely already to know there is going to be a hearing, meeting, forum. do a terrible job
1:07 pm
communicating with the public in general, let alone events. as somebody that is in the industry and has been in the i wasry for a long time very disappointed in most of the cannabis industry that is regulated. those people have that opportunity to make money, to be in this for profit legally because of what folks have done the last few decades trying to turn this around, to fight for legalization. them tocumbent on understand that they only have this opportunity because of those people and they should be educating, going to the city and state and pushing this out to your people -- their people. as somebody that has worked in so many of these mayor-based application processes, people promise a lot of stuff when they apply for these licenses and don't do that stop on the backend. if they did this would be a far different place and people would be far more educated.
1:08 pm
there are other great sfsp that iss like doing a great job with building awareness on college campuses that have been disconnected for the past couple of years, they may have been too young to care about it. those are some of the brightest, hardest working mines that we have and they are growing larger every day in their influence. [applause] >> that is such a great question. that is something i feel passionate about. attitudehere is an inside the government often that you pass something like a loan expungement and you have an expungement clinic and everybody should just feel happy and show up. of course they don't show up. that leads to a snowballing that does not help anything. we have spentts
1:09 pm
that we as a movement have spent years cultivating relationships with community organizations and establishing authenticity and credibility such that when people do show up they get to see their results. -- or a workshop for empowerment program last week in roxbury, massachusetts. there were three times as many people as good fit in the room that showed up. people with criminal backgrounds, people in the underground market. the people we were trying to serve. that could never be done the month beforehand. you have to put years into it. the last thing i will say about that is, it really struck me earlier when eric said, this is all on a foundation of dehumanizing people who use or sell drugs or have drug offenses. events, ande these i have seen this firsthand and you are a policy maker, and nobody in your world intersects
1:10 pm
with this world, you are imagining something scary. if you can do a good job at getting people to show up and have that one-on-one interaction , so you are thinking about should we exclude someone with convictions, you're not thinking about someone scary, you think about the person you met. it makes such a big difference for decision-making. it could not be any more important to have these events correctly and set up a form of authenticity that is ongoing. [applause] here in theestion center. >> my question goes out to all of you regarding your background issues. i am a felon and it was because of cannabis. i did four years. i am in the middle of an application for massachusetts. bumpo i get over this road , please. i want to be legit.
1:11 pm
i want to be straightforward. i work for a group in new york city that helps new york city people who have records expungement doesn't work and sealing them cannot figure it out. $10,000 and it won't guarantee anything. insight?ight -- any >> it just happened. we need people to show up at items like this has asked these questions. what robot are you trying to get pass -- road bump are you trying to get past? >> a felony conviction for marijuana. >> in massachusetts there is no road bump. you specifically cannot be excluded from the that.ry for you can apply for priority because you have a drug conviction. you can apply for the equity
1:12 pm
program and get extra technical assistance. [applause] all right all right. we have time for one or two more questions. one question. >> i have a question -- newve a question about the up and coming entrepreneurs like myself. today,n i do, starting to help the community and not just start today, but implement that into my business of it can last longer and it can always apply? >> one thing i would recommend is getting involved in the minority cannabis business association. i have noticed, in a place like denver that is incredibly white, that people of color do not feel comfortable in the cannabis industry.
1:13 pm
when you go to cannabis events they don't show up. mcba held an event and 250 people of color showed up. i didn't even know there were that many people of color in denver. [laughter] i think they are striving for a network. we held an event at the university of denver that was there for just this issue, to help you much for newer's and advocates -- young entrepreneurs and advocates find their network. we are trying to find the same value in this industry. it may not just be having a license. there are so many ancillary opportunities. not just packaging and point-of-sale systems, but it events, culture, fashion, music. it is endless. i think helping people find out there are other opportunities that are being pursued that are lower capital but still have a
1:14 pm
huge upside and are more culturally appropriate to the folks that want to get in, i think that is a wonderful place to start. also to be working with folks that understand that this is much bigger than business. that there is a social obligation to the businesses that we run and that is the kind of community we are try to create. >> could i take just a few seconds to address that question of can cannabis heal the criminal justice system? >> you have 15 seconds. the drugs that are going to heal the system are heroin and opioids. that epidemic is leading to understanding the humanity of people who are suffering. we are in a cultural moment where the drug problem is being reconfigured around the country because of the extent of this kind of tragedy. -- want weerstand accept the humanity of people using drugs various the purpose of drug loss should be to
1:15 pm
minimize suffering instead of -- because itnly care started affecting rich white communities. [applause] heroin has been hurting people for a long time. they did not start caring until it started affecting suburban white communities. [applause] any final words? >> i think we all understand there are powers and numbers. getle asking how they can into an industry, this is a time where you have to unite. you have to look for different networks to be a part of to make change. this is the most important time were joining different , all theions, sfsp organizations that are out here and doing the work. why don't you guys give our panelists a big hand.
1:16 pm
1:17 pm
>> we heard about this at the event was underway. the democratic leader of the senate saying he is formally announcing his plan to decriminalize marijuana at the federal level. it is time we allow states to have the power to decide what works best for them. i will tie about our prime time coverage tonight. at 8:00 eastern, more on our weekly series, 1968 america in turmoil. how perceived liberal excesses and disenchantment with the size of government gave rise to the radical right, the resurgence of richard nixon. theguests are the author of right moment, ronald reagan's first mystery and the decisive turning point and robert, editor
1:18 pm
of the american conservative. later, a conversation with white --se rod shaw he talked about his family and growing up in connecticut as well as his early beginnings in politics and the relationship between the media and the white house. that interview is tonight at 9:30 here on c-span. next we are going to take you live to saint marcus at visible church in houston where former first lady barbara bush is lying in repose. the former first lady died tuesday. her funeral is tomorrow in houston. this public viewing is expected to last throughout the day.
146 Views
IN COLLECTIONS
CSPAN Television Archive Television Archive News Search ServiceUploaded by TV Archive on