Aaron Smith, the former head of NCIA (National Cannabis Industry Association), is retiring. His work has helped to bring reform on an issue which was previously marginalized and now mainstream. He’ll then pursue another ambitious goal: helping to break the partisan gridlock which is endemic within American politics.
Smith has worked as co-founder and Executive Director of NCIA for over 15 years. Smith started his advocacy career with groups such as Americans for Safe Access, Marijuana Policy Project and Americans for Safe Access. Smith has been a witness to the fast-paced evolution of this sector. He tells MEDCAN24 that the industry is at a “crossroads”, with competing interests and challenging political issues.
But while keenly aware that it will take a stepped-up push from all stakeholders to deliver on the small and large goals of the movement—from banking access to ending federal prohibition altogether—Smith says he’s compelled to take on a new role outside of the industry. Smith will remain on the NCIA board but will be stepping down as CEO to focus his efforts in another capacity.
Smith’s message towards the industry and its advocates? This is the moment to accelerate.
Adam Stettner is the chair of the NCIA Board. He will take over in the short term the functions that the departing CEO held. This organization, at this momentous inflection in marijuana policies, must rethink its strategies to benefit both consumers and businesses.
Smith, who is leaving the Association’s board of directors and leadership in the near future, says that he has “no doubt” they will do a great job.
“I don’t really think that there are any members of NCIA who joined due to me. He said that it’s been all about the institution which is managed by its members. “The board is selected by the members. The organization is led by the board. The organization is well-managed, and I am confident.
He also said that “he would really look forward to seeing the continued engagement of the industry” and stressed “the importance to invest in reforms”. He said that while the cannabis industry faces some economic challenges that may limit its ability to invest in any legislation or issues, it is at risk of failing to make basic reforms.
“If you’re part of a cannabis industry, you’re part of a social movement—and the movement is not done yet,” he said.
MEDCAN24 interviewed Smith before his departure on August 15 to discuss his experiences with NCIA, the challenges that remain in the cannabis industry, and his future policy. This interview has not been edited in order to maintain clarity and length.
MEDCAN24 – You started your career in a nonprofit advocacy setting at ASA or MPP. How did you find the transition to a hybrid role in industry advocacy with NCIA?
Aaron Smith: That was a different time. I mean, it was a time that the industry and the advocacy communities were essentially one and the same. But we perceived that the industry was beginning to grow beyond that core group, and that’s when we made the decision to start NCIA—we being Steve Fox and myself.
The transition seemed seamless at that time and logical. The transition was seamless and logical. It seemed to be a natural progression.
A lot of it was a messaging shift—from talking about the issue just from this sort of broader ‘doing what’s right for the country’ agenda that we had, to just the nuts and bolts of what it takes to run a business and talking about things like taxes and banking and those sort of practical issues.
Some people are concerned about the increasing influence of industrial interests on this area and what that might mean for grassroots advocacy efforts that focus more on consumers. Share you this concern?
Because I think policy needs to be balanced in order for it to serve the interests of all constituencies. As I consider that policies need to be balanced so they serve all of the constituents’ interests.
Of course, I’m representing the business community—but it’s very important that consumers have a stake, and that public health and other interests have a stake, in driving policy reform forward.
I am also worried because resources in the industry seem quite scarce. There are also those who worry that the industry’s resources seem to be quite limited. [funding] It’s not like the industry is stepping up to the plate. And while the industry is putting in a significant investment—I’m not saying it’s insignificant—we’re not where we should be in terms of the kind of money that you see behind an effort to get this thing over the finish line.
MM: What, in your opinion, needs to happen to bring this dynamic back into balance and to give the industry the necessary resources?
AS: I know we’re in sort of a catch-22, because a lot of it changes on federal reform—putting 280E [the IRS code blocking marijuana businesses from taking federal tax deductions] It would be a huge difference to our ability invest in policies if we could see the past. That’s unlikely to happen, unless more money is invested in policy reform.
But I think that a lot of this, at least when speaking to the industry, comes down to the individual level, where every single person who’s invested in the cannabis industry—whether they’re starting their own business or they’re an investor in another part of the industry—needs to be invested in cannabis reform.
If you don’t, it would be foolish even to try and get involved in this precarious industry. Our success is dependent on the progress of reforming organizations. It’s foolish to put your savings into a cannabis company without investing in cannabis reform. Unfortunately, this is the exact approach taken by the majority of companies in the cannabis industry.
This is challenging to me. I say that even if the businesses don’t join NCIA or contribute to other organizations, they still should do something. If nothing else, the business industry will die. We’re right at a crossroads, I think. It’s time to get the gas pedal on.
MM: In terms of leadership and priority, what is next for NCIA?
The short term is the best time to buy. [NCIA is transitioning] the leadership authority to the board as a whole, under the direction of Adam Rosenberg, who’s our board chair—effectively as an acting CEO. In reality, he is just going to keep being chair. It’s the board that will be taking over leadership duties from the CEO. As part of this, the board is also promoting Brooke Gilbert, our Chief Strategy Officer, to the position of COO to manage the day-today operations, to oversee staff management, and to keep the trains on time. Brooke was well known. She has been with the organization 12 years and is very well known by its members.
In the short term, the board has decided to split my position into two. In the long-run, over the coming months or however long it takes the board—I plan on staying on the board. Since I’m both the current board member and CEO, I’m quitting my position as CEO. I accept the board’s offer to stay on the Board for the near future.
In the end, [NCIA will be] reevaluating everything about the organization and evaluating the needs for what’s the best CEO for this membership, for this organization—the best attributes and qualities that it would take to bring the organization to the next level, and then conducting a thorough national search. The process is already underway. I cannot give you an exact date when it will be finished.
But I do think that interim leadership in this case is solid. There are staff members who’ve worked here for years. Then there’s a board which is very energetic and engaged with the organization. It was easier. It made it easier for me to step out of my role knowing—just you know how great this board is right now, and that you know how engaged they are.
MM: What are your thoughts on the future of this industry, and what can be done to improve it under a Trump administration that is often unpredictable?
AS: There’s still a lot of options. It’s probably best to reschedule federally, because the president is able to do it with a stroke of the pen. He’s also already shown strong support for rescheduling federally and beyond. Today, we hired a new DEA director. It’s unlikely that we will see it happen immediately, but I believe there is a good chance this could occur by the end.
Then beyond that, I think [rescheduling] Just sending a message to Congress would show that the Administration is committed to reform. The SAFE Banking Act, and other small reforms would be easier to implement.
NCIA’s advocacy will continue in the longer-term for legacy operators. Reclassifying to Schedule III fixes 280E going forward for everyone, but there are thousands of businesses who have staff tax debts that need to be settled. NCIA plans to give this issue priority as soon as possible.
You must have some memories of NCIA.
AS: I think that one of my favorite things has always been our annual fly-in lobby days—seeing that grow and change over the years. This has always been my favourite time of the year on many levels. It allows us to engage our members in a more meaningful way, than at regular events where we just hang out and network for two hours. The two days are devoted to working. This is a two-day experience that’s great for gauging the climate of Congress. And when I started this, just getting meetings with a member of Congress was really, really hard—and then if you got that meeting, it was like just jokes and poking fun and eye rolls the whole time.
It’s a great opportunity to see everything on display and connect with the members. This is an excellent opportunity for me to connect with the industry, as well as see what’s on show. Next year I will be joining the board and looking to the future.
What’s your favorite memory of a meeting with a politician?
We have had great champions throughout the years. Just meeting someone is among the best memories that come to mind. [Sen. Mitch McConnell (R-KY)] on this issue over the long period of his history—from getting to the point where his office ready to talk to us to where he was open to at least hemp reform. It was a fund-raiser that you reported. Although we tried to keep the information secret, it leaked. It was at an Orange County golf club where you guys got it years ago.
The experience was wonderful, as it helped me to understand his perspective. The professor was kind and gave us his entire spiel about what the Senate’s role is, from his perspective. At the same time he heard all these stories coming from the marijuana industry. This was clearly not his first encounter with the cannabis industry. The fact that he spoke about banking and 280E was very important.
Tell us what your plans are for the future.
As of today, I will be taking over the position as director political for an organisation called Unite America. They work on structural electoral reforms aimed at reducing political polarization and improving functioning government— so things like open primaries, ranked choice-related voting, independent redistricting reform.
As it intersects, anybody who’s looked at this issue can see this incredible progress that cannabis has made over at the state level, usually at the ballot box—but we’re all frustrated because Congress can’t seem to get even the most incremental, modest reform such as the SAFE Banking Act across the finish line. The reason is that the political polarization, and incentives in our system, reward gridlock while punishing members of Congress for reaching across party lines to seek solutions.
It’s a topic I have been interested in since, I would say, January 6. As a sort of systemic solution for many of our nation’s issues, I was following this organization. The SAFE Banking Act was a case in point. Back then, the Democratic Trifecta was across all levels of government. Everyone thought that this act would pass. [then-Senate Majority Leader Chuck Schumer (D-NY) and Sen. Cory Booker (D-NY)] We were talking about, laying the track and refusing to let this pass unless all of the social justice provisions could be inserted, but that turned the Republicans off, prolonged the process beyond Christmas and nothing happened.
This little anecdote, that everyone in the industry is familiar with, is what’s causing the problem. Chuck Schumer, who is worried about being primaried on the left, has no choice but to appeal to the part of his audience that is on the left. New Yorkers, on the other hand, would rather see him make progress towards SAFE Banking than to just look good on the sidelines.
It’s about getting more people elected who are willing to compromise on issues like this and others.