Illinois Craft Growers Association Gears Up for New Entrepreneurs

• By TMCC Admin Team
• October 3, 2021June 6, 2023
• Shows

Host Mark Peysakhovich speaks with three newly awarded Illinois craft cannabis licensees. 

These men work together to reach other craft growers licensed in Illinois through a newly formed trade association, the Illinois Independent Craft Growers Association (IICGA).

Introducing the Craft Grower Infuser License (0:10)

• Illinois offers a new license called the Craft Grower Infuser License.
• This license allows the licensee to grow and infuse cannabis products.
• Only 32 of these licenses were issued, and the video features three of the rare winners.

Introduction of David 00:26

• David is one of the three winners of the Craft Grower Infuser License.
• He is originally from Massachusetts but has lived in Illinois for 12 years.
• He is a lawyer and has been practicing for almost 10 years.
• He got interested in the cannabis industry when he wanted to do some real estate deals with high school friends.
• David wrote most of the applications for the first round of dispensary applications.

Introduction of Bobby Burns 04:13

• Bobby Burns is an alderman from Evanston.
• He was recently elected to represent the fifth ward of Evanston.
• Burns grew up in Evanston and worked on education reform, criminal justice reform, and housing and security issues.
• Burns ran a political consulting company that focused on helping progressive and insurgent candidates win elections in Chicago’s north and south shore.

How David Got into the Cannabis Industry 01:37

• David began his journey in the cannabis industry by doing real estate deals with high school friends.
• He then realized that some of the applications were suited for his legal writing skills.
• His first round of dispensary applications was successful, so he got prepared for the craft grower license.

Bobby Burns’ Mission 04:21

• Bobby Burns’ mission is to ensure that people living in areas impacted by cannabis prohibition have a place in the cannabis industry.
• Burns’ focus is on social equity considerations.
• Burns tried encouraging his friends to apply for the license, but they did not trust the process.

Bobby Burns’ Background 05:34

• Bobby Burns has been an activist and concerned resident for many years.
• He worked on issues related to housing and security, education reform, and criminal justice reform.
• Burns has two children and lives in Evanston.
• He applied for the license to try and give his friends a chance to join the cannabis industry.

Introduction to the Illinois Independent Craft Growers Association (IICGA) 10:11

• The IICGA is an association formed by Scott, the attorney, to provide support, education, and promotion to licensed holders of craft growers in Illinois.
• The organization was formed when licensing delays were perceived to benefit the incumbents in the industry.
• The association aims to provide a seat for craft growers and ensure their voices are heard in the industry.
• The IICGA is an independent organization and is not affiliated with any incumbents in the industry.
• The association has a broader scope than the Illinois Craft Cannabis Association and targets craft growers.
• The organization has recently become active again after being dormant since last September when there were no licensees to be members.
• The association’s priorities will be determined by the members who will vote for a board of directors.

The Illinois Independent Craft Growers Association Event 10:16

• The IICGA is organizing an in-person event on Wednesday, October 6th, from 6 pm to 8 pm at a bar called Dorian’s.
• The event will be an opportunity to meet and greet, elect a board of directors, and have an educational component, which is a big part of the association.
• The educational component will feature a panel discussion with dispensary operators answering questions about the industry.

Personal Backgrounds of the Speakers 06:55

• David has worked in construction and building trades for 40 years and is a true social equity advocate.
• Three people on David’s application, including himself, have had cannabis arrests to different degrees.
• Scott is an attorney with 32 years of experience in banking, real estate, and other highly regulated industries.
• Scott’s client is a large-scale commercial confection manufacturer and a majority Hispanic-owned team.
• Scott and his team have been working hard to put together their application and have spent much time working on it themselves.
• Both speakers are excited to be part of the industry with other good people in the trade association and the larger community.

Thoughts on the Licensing Process 06:55

• David applied for a license because he was committed to growing no matter what.
• David didn’t trust the government a lot but dared them not to give him the license.
• The delays in licensing were perceived to be benefiting the incumbents in the industry.
• Scott and his team missed one point on their dispensaries application but scored very well and didn’t have the veteran in their team.
• Scott and his team decided to go for the craft grow license and are excited to be awardees.
• The speakers believe everyone who applied put in blood, sweat, and tears and all earned it.

Membership and Vaccination Requirements 15:14

• The event is only open to craft grower licensees.
• Interested attendees must be vaccinated
• The organizer is taking membership applications at the event
• Membership is currently free
• The organization as a whole will decide what kind of membership to offer

Defining “Independent” 16:23

• The Illinois Independent Craft Growers Association has defined “independent” as not being affiliated with a cultivator or MSO.
• The idea was to have groups that were not legally associated with the market dominators in Illinois
• The concept of being “independent” may be subject to change

Goals of the Illinois Independent Craft Growers Association 18:56

• The board member wants to bring people together and have strength in numbers
• The organization aims to communicate with the state and make requests to the state
• The end goal is to make the craft grower part of the industry better for employees and companies
• This may include creating more jobs for people associated with craft grower licensees

• The goal is to organize around this trade association to promote interdependence among cultivators.
• The association aims to find a common interest in working together despite the limitations set by state statute.
• The association seeks partnerships with new licensees to draft legislation and make administrative changes.
• It aims to support social equity applicants to stand up their businesses and capitalize on their investment.
• The association emphasizes the importance of building a community.

Challenges in the Social Equity Loan Program 23:08

• The State needs to be more explicit in directing their support of social equity applicants.
• The program should ensure that the equity and the interest of these social equity applicants are not significantly diminished before they can stand up for their business.
• The program should guarantee loans and determine how to reduce interest rates from 8% to 3%.

Composition of the Membership 24:40

• The group is committed to diversity in its membership.
• The group comprises about 70% minorities and has two individuals who would otherwise qualify as social equity.
• The group is excited to offer employment opportunities to individuals identified as principal officers on their team.

Direct Collaboration and Partnership 20:57

• California has laws allowing more direct collaboration and partnership among cultivators than Illinois.
• In Illinois, cultivators cannot co-locate.
• However, Illinois can organize around the Illinois Independent Craft Growers Association to promote interdependence among cultivators.

Legislators and the Initial Bill 21:54

• The legislators at the state level framed the initial bill based on people who had an interest in becoming cultivators and dispensary owners.
• Now that licensees have been awarded licenses, they know the challenges and pain points.
• Licensees are actively out there looking for locations and having discussions about equity.
• The State should partner with new licensees to draft legislation and make administrative changes.

Ownership and Social Equity 26:30

• The speaker identifies as Cuban-American and fair complexioned.
• According to the speaker, all craft grower licenses in Illinois are held by social equity applicants.
• The terms of operating agreements among license holders are unknown to the public, making it unclear who controls the organizations.
• The speaker’s organization is 80% African-American owned, and the speaker is the CEO.
• The speaker’s uncle owns 51% of the organization, while the speaker owns 30%.
• The organization qualified for social equity through hiring and also has impacted family members.
• The speaker believes that the issue of social equity in the cannabis industry is about opportunity rather than how one gets there.

Encouraging Diversity and Equity in the Industry 28:23

• The speaker suggests that the newest industry association can encourage more diversity and equity in the industry.
• The speaker’s organization is majority Hispanic-owned and qualified for social equity through hiring.
• The speaker must have most employees with social equity status, including a residency in a DI zone, a cannabis arrest, or impacts from cannabis arrests in the family.
• The state’s statistic states that 65-67% of awardees were majority minority owned, and 100% were social equity.
• The speaker suggests that conversations about social equity and hiring should be had at a different time.

Selling Licenses to the Highest Bidder 32:51

• A group vocal about social equity during the waiting period for licenses announced they would sell the licenses to the highest bidder when the awards came out.
• The speaker is critical of this group for making social equity applicants into millionaires and then selling to the highest bidder.

Social Equity in the Cannabis Industry 33:10

• The group discusses the importance of promoting greater social equity in the cannabis industry.
• Concern is that people of color have been unfairly underrepresented in the industry.
• It is suggested that all company levels should prioritize equity, from the administrators to the master growers.

Importance of Recognizing Underground Growers 34:00

• The group discusses the importance of recognizing the contributions of underground growers and other community members who have sacrificed to build up the cannabis market.
• There is concern that these individuals, who have traditionally operated in the shadows, are not being given a fair place in the industry.
• The group stresses that this is not just a black and white issue, as individuals from all walks of life have contributed to the industry.

Issues with the Application Process 36:04

• The group discusses issues with the application process for cannabis licenses.
• It is noted that nowhere in the process has clarified that individuals with previous experience in the illegal market can apply.
• There is concern that the system is ass-backward and requires leadership to address these issues.

The Name of First Signature Strain 37:51

• The group discusses what to name their first signature strain.
• There is a suggestion to involve the audience in a contest to name the strain.
• One member suggests they may name the strain after someone they are not the biggest fan of.

Acknowledging Contributions of Team Members 38:43

• One group member acknowledges their team members’ contributions to the application process.
• They note that they are not a cultivator and have had excellent support from their team.
• They want to give credit where credit is due.

Importance of Recognizing Craft Growers 39:30

• One member of the group emphasizes the importance of recognizing craft growers.
• They note that many craft growers are still far from thinking about what strain they will grow.
• Much work must be done to support these individuals in building their businesses.

Naming the Business 39:46

• They are trying to create a name for their craft grower business.
• They want a name that can be used for labeling and marketing their products.
• The business is expected to be a multi-million dollar investment.
• They are considering the name “peysakovich kush,” but it may not fit on the label.
• Bobby suggests the name “mocha” because it has a good ring to it and can stimulate the brain to associate cannabis with sweets and desserts.

Practicalities of Starting a Craft Grow Business 41:10

• Starting a craft grow business involves a lot of practicalities that many people may not consider.
• The group must focus on labeling, marketing, and complying with regulations.
• They do not have the luxury of thinking about what to name their signature strain.

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