South Dakota has submitted its hemp plan to the U.S. Department of Agriculture, marking a major step forward for one of the last states to legalize hemp production in the country.
The USDA has 60 days to either approve or disapprove the plan.
Grand Forks Herald reports the state plans to work on building out its program in the meantime. The state’s hemp program manager, Derek Schiefelbein, told the outlet information about how processors and growers can apply will be available in the near future.
The state’s plan requires hemp operations to be outdoors on at least five continuous acres, Grand Forks Herald reports. Indoor growing is not permitted at this time.
Lawmakers debated legalizing hemp for two years before South Dakota Gov. Kristi Noem signed it into legalization March 27. Prior to 2020, Noem had largely been opposed to its legalization.
Prior to its legalization, South Dakota was one of three states in the U.S. that did not allow hemp production, along with Mississippi and Idaho. Mississippi has since legalized hemp cultivation under a USDA producer license, meaning the USDA will be administering the producer licenses.
Idaho remains the sole state in the U.S. without a plan for hemp cultivation.
California Cannabis Advisory Committee to Hold Virtual Meeting This Week
The discussion will revolve around consolidating the three California cannabis licensing authorities regulations into one comprehensive set.
SACRAMENTO – PRESS RELEASE – The Bureau of Cannabis Control (Bureau) announced today that the Cannabis Advisory Committee will hold a two-day virtual meeting on Thursday, Aug. 20, and Friday, Aug. 21, 2020. The focal point of the meeting will be to discuss and provide recommendations for consolidating the three licensing authorities regulations into one comprehensive set of regulations applicable to California’s cannabis industry.
This information will be used as part of the process for the plan announced by Governor Newsom in January to establish one Department of Cannabis Control to serve as the regulator for the cannabis industry and as the single point of contact for licensees and local governments.
The Cannabis Advisory Committee advises the Bureau, the California Department of Food and Agriculture, and the California Department of Public Health on the development of regulations that help protect public health and safety and do not perpetuate the illegal market for cannabis.
Natalia Bratslavsky | Adobe Stock
Adult-Use Cannabis Legalization Measure Qualifies for Montana’s November Ballot
The Secretary of State has certified that New Approach Montana’s two complementary initiatives have gathered enough valid signatures to appear before voters this year.
The Montana Secretary of State has certified an adult-use cannabis legalization measure for the state’s November ballot, verifying that New Approach Montana’s two complementary initiatives have gathered enough signatures to appear before voters this year, according to a Great Falls Tribune report.
Statutory Initiative 190 would establish a system to regulate and tax cannabis for adult use, and Constitutional Initiative 118 would authorize the state to set the legal age for consumption at 21.
New Approach Montana gathered more than 50,000 signatures for the statutory initiative and more than 80,000 signatures for the constitutional initiative, and submitted the signatures for certification in June, Great Falls Tribune reported.
The Governor’s Office of Budget and Program Planning has estimated that, if passed, the measure could generate $3.5 million in tax revenue in fiscal year 2022, with the market growing to $38.5 million in 2025, according to the news outlet.
Kelly Perez and Courtney Mathis, co-founders of kindColorado, launched Cannabis Doing Good to help cannabis businesses craft their own unique approaches to racial justice, sustainability and social responsibility.
Photo courtesy of Cannabis Doing Good
Cannabis Doing Good Helps Companies Craft Approaches to Racial Justice, Sustainability and Social Responsibility
The company helps cannabis businesses build and refine community engagement programs to raise awareness and contribute to causes they believe in.
When Kelly Perez and Courtney Mathis launched their consulting company, kindColorado, six years ago to help cannabis companies build social responsibility and social equity programs, they quickly realized that more was needed to advance the equity and racial justice conversation in the industry.
Through working with businesses to build their community engagement programs, Perez and Mathis were able to slowly introduce discussions about ways to more directly address equity. Then, two years ago, the duo went a step further to launch Cannabis Doing Good, a separate company dedicated to helping cannabis businesses craft their own unique approaches to racial justice, sustainability and social responsibility.
The goal is threefold, Mathis says. First, Cannabis Doing Good aims to build a network of purpose-driven companies through the launch of a membership program and a consumer-facing business directory.
“For example, if you’re in Illinois and you’re looking to shop a black-owned business, women-owned business or a LGBTQA business, you can do that,” she says. “If you’re looking for a brand that has sustainable packaging or you’re looking for a brand that contributes to your local food bank, you can find companies in our purpose-driven business directory [and] use your dollars to support them.”
The second goal, Mathis says, is to showcase companies that are supporting equity through a Cannabis Doing Good awards program.
Finally, Cannabis Doing Good aims to set the standard for social justice, sustainability and social responsibility in cannabis.
Earlier this year, the company launched a giving initiative to raise $10,000 to support those most negatively impacted by the COVID-19 pandemic. The initiative was successful, raising more than the $10,000 goal, but it showed Perez and Mathis that Cannabis Doing Good needed a much larger mechanism to enable the cannabis industry to support the causes they believe in.
“We needed to make it easy, [and] we really wanted it to be focused on racial justice,” Mathis says.
With the help of Sensible Colorado as its fiscal sponsor, Cannabis Doing Good launched the Cannabis Impact Fund, a nonprofit arm that allows companies to pledge 1% of sales or profit to support six organizations that are exclusively focused on racial justice for the next 12 months.
Photo courtesy of Cannabis Doing Good
Perez and Mathis launched the Cannabis Impact Fund to allow companies to donate to the causes and organizations they believe in.
“There are folks … that have been doing work in racial justice, social justice and equity for decades, and we think it’s really important to leverage the cannabis community to support them in masse,” Mathis says. “We think we’ve made it as easy as humanly possible to pledge 1%, or they can donate.”
In the future, Perez and Mathis hope to open the Cannabis Impact Fund up to support other causes, including sustainability, homelessness and hunger.
“The cannabis community can always point to the Impact Fund to say, ‘Look what we did, look what we’re doing and look at our commitment to show up for our neighbors,’ which I think is really cool,” Mathis says.
“We in cannabis aren’t always invited to participate in nonprofits and movements in general,” Perez adds. “The Cannabis Impact Fund is really the first of its kind in the country for the cannabis industry to step up in a concerted way to join the movement for black lives [and] to support the organizations within cannabis that have been working on social justice since the movement started.”
Embracing Cannabis Social Responsibility
Another way Cannabis Doing Good helps the cannabis industry support their communities is by fine-tuning their approach to social responsibility. Each company’s approach must be unique to benefit both the business and its local community.
Perez and Mathis have never felt that corporate social responsibility in the traditional sense was a good fit for the cannabis industry, but they have embraced what has become known as “cannabis social responsibility,” which often includes community engagement plans.
“For us, it was, how do you see the licensing requirements?” Perez says. “How do you differentiate your brand? How do you really become an asset in the community that the community knows about? … What are the actual things that are supporting people and the planet in this community, and how can this business pitch in and be a part of it? By doing that, you’re also engaging your employees, you are improving the culture of your company [and] you are building cannabis’s reputation out in the community, as well as your brand.”
Over the years, Perez and Mathis have seen many companies doing good things for their communities, and Perez points to Colorado-based Terrapin Care Station as a business worth noting.
The company hired Cannabis Doing Good to help them take the efforts they were already involved in and create a more unified approach to community engagement.
“When we sat down with them, a couple things rose to the top: basic human needs, veterans, homelessness and prison reentry—that connection between criminal legal reform and cannabis,” Perez says. “We crafted … Terrapin for the People. … It’s really good work to be proud of.”
Terrapin for the People allows the company to collaborate with local social justice programs and efforts in the community to help advance their missions.
“They are contributing, not only with donations but also serving on the board and helping to be a community member that solves community problems,” Perez says.
There are many ways that businesses can support social and racial justice, she adds, but creating equitable opportunities in the cannabis space often centers on three main efforts: repairing the harm done by the war on drugs through reentry, expungement and criminal justice reform; creating business opportunities for those impacted by prohibition through funding and training; and finding ways for a legal and regulated cannabis market to benefit the communities hardest hit by the war on drugs.
“If you’re a person of color and you’re in cannabis, you may be that example of social equity,” Perez says. “You could be that person who’s participating in the industry and who’s reaching back and making sure there are opportunities for others, highlighting inequities in the system.”
More Good to Come
Perez and Mathis say they’ve set out to change the world and have taken on many difficult issues in the process.
“Racial justice is not an easy check-off box,” Perez says. “But contributing 1% of your revenue or product sales or being a founding member for the [Cannabis Impact Fund], that’s a statement on the national stage about what cannabis is and what we care about. That is participating in a movement that is the largest in our lifetime. We take some hard things like environmental degradation and find a way … to carve out what the right thing is to do and then make it easy for businesses [in an industry] where nothing is easy.”
“We continue to create pathways and mechanisms for the cannabis industry to show up,” Mathis adds. “If we can make the right thing the easy thing, I think we’ll have done a really good job and then have impact to show for it. … I think that if we can look back and say, we have contributed to community health, social equity and the conversations around sustainability, and we’ve created a pathway for cannabis businesses to participate in a way that’s really easy, I think we would be really, really proud of that.”
Cannabis is still a new industry, Perez adds, meaning policy and business practices largely have yet to be established—and Cannabis Doing Good aims to set the bar high.
“I think this is going to be the first time in our lifetime that we’ll have an industry step up and create some of the social change they hope to see,” Mathis says.
“We have at our fingertips this new [opportunity] to craft it in a way that does support communities, that is racially just, that does have opportunities for women and people who haven’t had opportunity,” Perez adds. “Why on earth wouldn’t we take it?"
From left to right: Steve DeAngelo, Mary Bailey, Sarah Gersten, Andrew DeAngelo, Dean Raise
Photo by Giacobazzi Yanez
Last Prisoner Project Works to End Cannabis Incarceration
The organization is petitioning for the release of cannabis prisoners while striving to provide education to them and their families and aid with reentry into society.
When they transported her from one prison to another, the officers shackled her around her wrists, waist and feet. Evelyn LaChapelle shuffled in half steps.
“You're in the middle of a runway with no one else, with the world not even knowing you're there. They don't even allow you to tell your family ahead of time, like, ‘Hey, I'm being transported today,’” said LaChapelle, who served prison time for a non-violent cannabis offense. “So, I'm … getting on an unmarked plane … and we're getting moved like cattle.”
Prison wasn’t exactly what she expected. She didn’t constantly fear getting stabbed or killed, as many inmates in other lockups do. But she cried early on when she realized what her diet would consist of: meat sticks mixed in ramen noodles. The outlook was grim. “Surviving is almost null and void in there,” she said.
LaChapelle served five years of her seven-year sentence for depositing profits from an illicit cannabis operation into her bank account. She was released Feb. 1, 2019, and given four years’ probation. She now works as an event planner, as she did prior to her time in prison.
Photo by Giacobazzi Yanez Evelyn LaChapelle
LaChapelle is an adviser with the Last Prisoner Project (LPP), a nonprofit founded by Steve and Andrew DeAngelo and Dean Raise. In that role, she shares her story, brings awareness to the issue of people being incarcerated for cannabis and promotes the work of LPP.
Registered as a 501(c)(3) in 2019, LPP’s mission is to free the approximately 40,000 prisoners incarcerated for non-violent cannabis offenses in the U.S, with the help of individuals, organizations and the cannabis industry. Its team engages in multiple initiatives, such as lobbying and gathering petition signatures to convince government to release prisoners, and seal and expunge their records; and setting up scholarships for inmates and their family members.” LPP refers to the prisoners it works with as “constituents.”
The organization has global ambitions, said Sarah Gersten, executive director and general counsel. “We have already started working in places like Canada, Mexico, Jamaica, the Caribbean more broadly,” she said.
Gersten said LPP splits contributions the following way: 40% for direct services, 14% for scholarships and microgrants for people who are incarcerated and their families, and the rest for “policy [and] legislative advocacy and development.”
LPP has begun offering direct services in three states. They include the Prison to Prosperity program it created in partnership with Harvest Health and Recreation in California; an expungement clinic it hosted with multiple other organizations in Hawaii; and a Cannabis Clemency Program it started in Colorado. LPP has also worked on policy efforts in several more states.
The group’s sense of urgency is heightened by the fact that prisoners are at risk of contracting COVID-19 due to overcrowding and inadequate health care, Gersten said. In May, for instance, cannabis prisoner Fidel Torres, 62, died in prison from COVID-19. He had less than two years left on his sentence.
By press time, Michael Thompson, an LPP constituent incarcerated in Michigan, had contracted the disease. “As a 69-year old diabetic facing malnourishment at the hospital, we are terrified that Michael will not make it,” an LPP email to subscribers reads. “Michael is feeling very weak, but he is a fighter and will fight for his life. Now we must fight for his freedom.”
LPP had previously deposited money into Thompson’s commissary account to pay for a physician, Gersten said. But the group ran into roadblocks with helping when the Michigan government froze his account following that deposit. The state government has the authority to “seek reimbursement if a prisoner has enough money to recover 10% of the estimated cost of care or 10% of the estimated cost for two years, whichever is less,” according to its Department of Corrections. The state’s treasury department argued in court that Thompson owed, but Gersten told Cannabis Business Times and Cannabis Dispensary he did not exceed either of the 10% limits.
Now, LPP is urging Gov. Gretchen Whitmer and Michigan’s Parole Board to not return Thompson to prison from the hospital.
It’s not always clear which factors lead to prisoners’ release, Andrew DeAngelo said, adding that social justice efforts require efforts on multiple fronts. Government officials often don’t share the why they decided to grant prisoners’ release. “They're very reluctant to spring these folks,” he said. “So, when they do it, they do it very quietly, they don't issue a press release, there are no cameras there unless we send them there.”
A Confluence of Events
In the 1970s, when Andrew DeAngelo was 9 years old and his brother Steve was in his late teens, Steve went to jail for several months for cannabis.
“The impact on children and families and parents—people forget, or don't want to think about that—when we talk about incarceration. But it has a big impact,” Andrew DeAngelo said. “It was a traumatic experience to go visit your brother in jail, have all the people that are running the jail telling you that your brother is bad, and you know your brother's not bad, you know your brother's good!” He called this a “foundational experience” of his life.
Photo courtesy of Andrew DeAngelo
Andrew DeAngelo
Later, he joined Steve in the illegal cannabis trade, in which he did things like handle logistics in the importation of cannabis from Mexico. The two then moved into the medical and legal markets, building Harborside from an Oakland, Calif., medical operation into a full-blown vertically integrated company serving patients and adult-use consumers throughout California.
Andrew said his brother has told a story in which Steve was sitting in a board room with people from cannabis companies; at the same time, a friend of theirs was locked up in Pennsylvania for transporting several pounds. This experience sparked the idea for the Last Prisoner Project.
“We just began to build it from there, as my brother and I usually do, over a cannabis consumption session,” Andrew DeAngelo recalled. They broke out the whiteboard and started building their team. Along with Raise as co-founder, they brought on Gersten as executive director and Mary Bailey as managing director.
Gersten said she met Steve through a social equity committee she sat on in Denver, and he told her about his vision for LPP. “I kind of jumped at the chance to be involved with this organization because I thought it was really something no one was focused on, yet it's such a critical part of moving this industry and moving legalization forward,” she said.
Improvements on the Outside
Efforts to release people from prison, whether through clemency or compassionate release, need to be paired with broader policy and societal changes, LPP stakeholders said.
When LaChapelle returned home from prison, she had trouble becoming financially independent and finding housing for her and her daughter, Venise.
“My struggle was paying for her tuition, for school,” LaChapelle said. “Last Prisoner Project set up a scholarship fund, and they're paying her monthly tuition. Moving forward, once I'm in a position to do so, I would like to see that done for [other] children affected by those who are incarcerated.”
Gersten extends an invitation to the cannabis industry to help. “They need to work with stakeholders like LPP and those representing those that have experienced the harms of prohibition to ensure that any legalization measures include those restorative justice provisions,” she said.
LaChapelle said she would also like to see inmates be able to gain employment that they are qualified for, as she was able to do. But many people with records can’t find work.
A month and a half into a job, LaChapelle said someone Googled her name and pulled up a damaging news release from the U.S. Immigrations and Customs Enforcement (ICE). The human resources manager called her into her office. “She asked me, 'Is this you?' and I told her, ‘My name is Evelyn LaChapelle, I don't imagine that there's many more of us.' I was asked to pack up my belongings and leave in the middle of a workday.”
The ICE release exemplifies how media narratives can affect the public’s perception of a person or event. LaChapelle contends that the same release influenced the jury in her trial.
Now, though, her name shows up on search engine results next to “Last Prisoner Project.” “I Googled my name the other day, and I'm extremely grateful that there's so much more content out there that at least now, you can see both sides of the story, as opposed to in February, there was only that one side, which was their side of the story,” she said.
Momentum for the Movement
Andrew DeAngelo compares social justice to business, in that they both require momentum, adding that LPP is beginning to build it and achieve its goals.
That goes for expunging records, he said, adding, “A lot of that work depends on whether the state—when they legalized for medical or adult or both, whether they also put provisions in those laws to address expungement.”
Many states don’t include those provisions, he said, either because of their lawmakers’ ignorance or their decisions to avoid perceived political risk.
Gersten said it will take time for LPP to make progress in every state. “The first states that we're working in are states with more progressive-leaning officials, states that have already legalized fully,” she said.
Andrew DeAngelo admits that to release the U.S.’s 40,000 cannabis prisoners will take “years and years and years and many millions of dollars and thousands of hours of legal and other work.”
“When people think about transforming something like the legal system, the justice system, it seems daunting, it seems impossible,” he said. “But I remember when we built the architecture that we're living with today in the 1980s. It was built one little bit at a time.
“It was first the mandatory minimums. Then the prosecutor got all of his power. Then they took the discretion away from the judges. Then they started instituting urine analysis tests for just about every job in America and squeezing people that way. And it was just one assault after another. And we can undo it."
Andrew DeAngelo said cannabis dispensaries can get involved with LPP’s “Roll it Up for Justice” program and gather donations at points of sale. LPP also has its “Partners for Freedom” program, through which he said a participating business can put LPP’s logo on its packaging or website and LPP will in turn promote the company on its site and social media.
“Partners for Freedom" participants also will receive mention in LPP’s annual report and, as the donation amount increases, will receive additional benefits, according to information Bailey sent to CBT and CD.
“What we need right now is the cannabis industry companies and brands to step up and either join one of our two programs, or contact us about something more entrepreneurial and ambitious, if they want to start a strain named after a prisoner or something like that,” Andrew DeAngelo said.
Giving back is good for business, as customers want authentic connections with the businesses they buy from, he said. It’s never too late, and being “late to the party” is better than not showing up at all.
“The industry is extremely lucrative,” LaChapelle said. “It was just deemed essential in a pandemic. I think that a lot can be done in sort of righting the wrongs. I think if the industry took a bigger notice of those who are still incarcerated, then it forces the community, the country as a whole, to take a bigger look at it.”
Nearly a year and a half out of prison, LaChapelle looks back on what she did that got her in trouble. She said she had no idea of the consequences. “Had my friend approached me with, 'Hey, I'm selling heroin, crack or cocaine. Can I put the money in your bank?' that would have been a hard ‘no.’ That would have been a ‘No way, Jose.’ But it was weed."
Correction (Aug. 14, 2020, 3:15 p.m. ET): An earlier version of this story stated that Evelyn LaChapelle served four years in prison. She served five years and is currently serving four years of probation.
Legislative Map
Cannabis Business Times’ interactive legislative map is another tool to help cultivators quickly navigate state cannabis laws and find news relevant to their markets. View More