{"id":22454,"date":"2020-06-10T22:31:42","date_gmt":"2020-06-11T04:31:42","guid":{"rendered":"https:\/\/www.simplifya.com\/?p=22454"},"modified":"2023-10-04T13:49:50","modified_gmt":"2023-10-04T19:49:50","slug":"social-equity-or-lack-thereof-in-the-cannabis-industry","status":"publish","type":"post","link":"https:\/\/www.simplifya.com\/social-equity-or-lack-thereof-in-the-cannabis-industry\/","title":{"rendered":"Social Equity – or Lack Thereof – in the Cannabis Industry"},"content":{"rendered":"

[vc_row][vc_column][vc_column_text]<\/p>\n

Written by Katelin Edwards<\/a>, Luke Ewing<\/a>, & Watson Mulkey<\/a><\/em><\/p>\n

\"\"<\/span><\/p>\n

The murder of George Floyd has amplified and renewed conversations about race relations in the United States and abroad. While the cannabis industry has been discussing social equity since long before the current unrest, we have not been seeing the results we want. And in a time where everyone recognizes the need to try harder, for the cannabis industry, that includes looking at the efficacy of social equity programs. Due to the injustices of criminalization, cannabis industry members have a unique responsibility in correcting the wrongs of the <\/span>War on Drugs that targeted people of color<\/span><\/a>.<\/span><\/p>\n

The War on Drugs, Black America, and Cannabis Legalization<\/span><\/h2>\n

It is impossible to address inequities in the cannabis industry, especially as it relates to the black community, without starting with the \u201c<\/span>War on Drugs<\/span><\/a>,\u201d declared by President Nixon in June 1971. This \u201cwar\u201d involved dramatically expanding the size and presence of federal drug control agencies, and enacting controversial measures that evolved to include mandatory sentencing and no-knock warrants all in hopes of eroding the <\/span>black community and weakening the anti-war left.<\/span><\/a><\/p>\n

\"SocialAlthough Nixon ultimately resigned as president, the crusade against drugs continued far beyond his controversial presidency. As president, Ronald Reagan <\/span>expanded the drug war,<\/span><\/a> causing rates of incarceration to skyrocket. Furthermore, when President Reagan took office in 1981, his wife, Nancy Reagan, kicked off her “<\/span>Just Say No<\/span><\/a>” anti-drug campaign. Public dismay for illegal drug use continued to build throughout the 1980s thanks largely to media portrayals of people addicted to the smokable form of cocaine dubbed \u201ccrack.\u201d This led to zero-tolerance policies and severe penalties related to both drug distribution and use. Despite President Bill Clinton championing drug treatment instead of incarceration during his 1992 presidential campaign, he defaulted to some of the same strategies and policies that only escalated the war on drugs. For example, President Clinton rejected a <\/span>U.S. Sentencing Commission recommendation<\/span><\/a> to eliminate the inconsistencies between crack and powder cocaine sentences. He also signed into law the <\/span>1994 Violent Crime Control and Law Enforcement Act<\/span><\/a>, a massive crime control bill that many see as having destroyed black and brown communities and expedited mass incarceration.<\/span><\/p>\n

Meeting Social Equity Promises\u00a0<\/span><\/h2>\n

As cannabis legalization spreads across the country and becomes more widely accepted — to the point of being designated an \u201cEssential Service\u201d during the COVID-19 pandemic; the opportunity disparity inherent in the industry has become more apparent as well. Many cannot wrap their heads around the idea that those privileged enough to overcome the numerous financial and regulatory barriers to entry in the cannabis industry are now legally profiting off of the same plant and practices that put poor and disadvantaged people — the overwhelming majority of whom were people of color — in prison for many years. Even today, many people are still serving time in jail for non-violent drug charges, despite local governments designating cannabis as legal, and cannabis workers as \u201cessential.\u201d<\/span><\/p>\n

In an effort to address the industry\u2019s racial disparities, many states and localities have implemented <\/span>social equity programs<\/span><\/a> as part of the licensing program and regulatory scheme.<\/span><\/p>\n

The concept behind social equity as it relates to cannabis law is allowing those who have been adversely impacted by cannabis — such as those arrested for cannabis-related crimes or living in communities disproportionately impacted by the War on Drugs — to more easily participate in the cannabis industry. However, most of these social equity programs have struggled and faced criticism for being ineffective. One reason for the lack of success in these programs is the \u201c<\/span>pay-to-play, greatest barrier to entry<\/span><\/a>\u201d model for establishing legal markets that many states seem to adopt.<\/span><\/p>\n

Barriers to Entry<\/span><\/h2>\n

Due to the infancy of the cannabis industry and its regulated nature, barriers to entry play a major role in participation in the cannabis industry. Common <\/span>barriers to entry<\/span><\/a> in the cannabis industry include:<\/span><\/p>\n