Senators question diversity of Lombardo cannabis working group

State senators on Friday questioned the gender and ethnic diversity of a working group requested by Gov. Joe Lombardo to weigh in on legislation and address cannabis industry complaints about the state’s regulatory apparatus and competition from the illegal trade.

“From day one of Governor Lombardo’s administration, there has been, and this is no criticism of the regulators, but it is what it is – there’s been one issue after another,” Lombardo’s general counsel, Chris Nielsen, told the Senate Committee on Commerce and Labor of Lombardo’s formation of a working group just weeks ago to address provisions of Senate Bill 69.   

“Was there diversity or was it just people the governor wanted to invite?” Sen. Roberta Lange asked Nielsen. 

“From our perspective it was diversity in that we wanted to get a cross section of industry or individuals that represent growers, retailers, the whole gamut of the cannabis industry,”  Nielsen responded. 

“Was there diversity in gender?” Sen. Pat Spearman, chairperson of the Senate Committee on Commerce and Labor, asked Nielsen, who named two women who participated in the working group. 

Members of the group included Nielsen of the governor’s office; Sen. Scott Hammond; David Goldwater, a former lawmaker and dispensary owner; Brett Scolari of Strategies 360, which represents licensees; Will Adler of the Sierra Cannabis Coalition; Layke Martin, executive director of the Nevada Cannabis Association and the organization’s attorney, Chelsea Capurro. 

The cannabis “industry’s business plan was perfected by people who are now in jail, or had felonies and could never qualify to buy a license,” Spearman asserted, referring to pioneers of the illegal trade. “If you look at the licensees, there’s very little diversity.” 

Hammond, a Republican, says he was asked “who should be in the group,” and thought of “the ones that I see here often in these meetings around cannabis,” adding he wanted to keep it small, given time limitations.  

Lombardo’s spokesperson did not respond to requests for comment.

“I’m not calling you racist,” Spearman said to those who participated in the governor’s work group. “I’m saying we have got to be intentional about diversity, equity, and inclusion, and if we’re not, we’re gonna keep doing the same thing over and over again. There’s always going to be a small group, pulled together at the last minute, and, oh, we just pulled folks together but it never occurs to anybody about diversity.”

“The people who were born in privilege, really have no idea what I’m talking about,” Spearman said.

Goldwater says Spearman’s concerns are misplaced because the Nevada Cannabis Association, which represents a variety of licensees, took part in the working group.  

“The working group makes suggestions. The Legislature, which is diverse in gender, as Sen. Spearman pointed out, has the final say and can accept or reject the group’s ideas,” he said. 

An amendment offered by Lombardo’s working group would reduce the amount of cannabis excise tax awarded to local governments each year from $5 million to $2.5 million. The other $2.5 million would be diverted to rooting out illegal weed growers and dealers.  

Organizations representing local governments testified in opposition to the diversion. 

“NACO (the Nevada Association of Counties) was not asked or involved in the working group on this legislation,” testified Vinson Guthreau, executive director.

“Like NACO, we were not involved in the discussions this time but are looking forward to that,” said Steven Woods of the Nevada League of Cities and Municipalities.

The working group’s amendment would also give the governor the ability to appoint the CCB’s executive director, who is currently chosen by the board. 

The committee took no action on the measure.