Promoting Social Equity in the Cannabis Industry

Expunging Past Convictions: A Step Toward Justice

A crucial first step in promoting social equity in the cannabis industry is addressing the lingering effects of past convictions.

Many individuals still face significant barriers due to cannabis-related criminal records, despite the substance now being legal in many states. These records can prevent people from finding employment, securing loans, or even renting homes.

Recognizing this, several states have enacted legislation to automatically expunge or seal certain cannabis convictions. For example, California’s AB1793 law allows for the automatic expungement of eligible cannabis-related convictions, giving people a clean slate.

However, while these measures are a positive start, they often don't go far enough. Many individuals convicted of other minor drug offences or those charged as dealers are still excluded from these benefits.

Inclusive Licensing and Employment: Breaking Barriers

Licensing and employment preferences are another critical component of social equity programs. These initiatives aim to help those most impacted by the War on Drugs enter the legal cannabis market.

For instance, cities like Oakland, California, reserve a portion of their cannabis business permits for equity applicants—residents who have been negatively affected by over-policing or who have a low income.

However, these programs face significant challenges. Obtaining a cannabis licence is just the first hurdle; starting a business requires substantial capital, often upwards of $250,000.

For many social equity applicants, particularly women and people of colour, this financial barrier is insurmountable. Without access to affordable loans and business resources, these licensing programs risk perpetuating the very inequalities they aim to address.

Using Cannabis Tax Revenue for Community Reinvestment

One of the most promising approaches to promoting social equity is reinvesting cannabis tax revenue into the communities most harmed by prohibition.

States like California, New York, and Illinois have created grant programs funded by cannabis taxes that support education, mental health services, substance abuse treatment, and economic development in disadvantaged areas.

For example, California allocates a portion of its cannabis tax revenue to help local jurisdictions assist equity applicants with regulatory compliance, securing capital, and obtaining technical support.

This initiative is part of a broader effort to ensure that the benefits of cannabis legalisation extend to those who were most negatively affected by its criminalisation.

Gender and LGBTQ+ Equity: An Overlooked Issue

While race and class are often the primary focus of social equity programs, it's crucial to consider gender and LGBTQ+ equity as well. Women and LGBTQ+ individuals have historically been underrepresented in the cannabis industry.

As of 2022, women made up only 23.1% of executives and 22% of ownership in the cannabis sector. LGBTQ+ representation is also lacking, despite the community's significant role in advocating for medical marijuana legalisation during the AIDS crisis.

The cannabis industry, like many others, is not immune to issues of sexism and harassment. Women and queer people often face additional barriers, such as discrimination and a lack of access to mentorship and funding.

Addressing these disparities requires intentional policy changes, such as providing targeted business consultations and mandating diversity and inclusion training within existing social equity programs.

Moving Forward: Building a More Inclusive Industry

As the cannabis industry evolves, there’s a pressing need to ensure that it grows in a way that benefits everyone, especially those who have been historically marginalised.

Policymakers must continue to refine and expand social equity programs, ensuring they address the full spectrum of inequality, including race, gender, and sexuality.

Some steps that could be taken include:

• Federal Decriminalisation: Removing cannabis from the Controlled Substances Act to eliminate barriers to banking and create uniform policies nationwide.

• Comprehensive Equity Assessments: Collaborating on nationwide evaluations to continuously improve state social equity programs.

• Support for Marginalised Communities: Offering free business consultations and targeted support for communities of colour, women, and LGBTQ+ individuals.

• Mandatory Diversity Training: Including diversity and inclusion as a key component of social equity programs to ensure a more inclusive industry.

Cannabis legalisation presents a unique opportunity to correct past wrongs and build a more equitable future.

By intentionally addressing the intersections of race, gender, and sexuality in cannabis policies, we can ensure that the benefits of this emerging industry are shared more fairly and justly.