Tag Archives: War on Drugs

Where Are We Now? Social Equity in the US Cannabis Industry

By Dede Perkins
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As state legalization measures begin to legitimatize the US cannabis industry, stakeholders, both those currently in the industry and those who plan to join in the not-too-distant future, grapple with the best ways to right the wrongs from the decades-old War on Drugs. While some stakeholders support residency requirements and setting aside a percentage of a state’s cannabis licenses for social equity and economic empowerment applicants, others contend that these solutions are discriminatory. Reuters reports that lawsuits against social equity programs have been filed in Michigan, Illinois, Missouri and Maine, and some have received decisions that rule against existing social equity programs. While there is disagreement on the best way to create an equitable cannabis industry, few dispute that we’re dealing with an oppressive legacy against low-income individuals and people of color and the cannabis industry is in a unique position to shape a socially responsible industry that focuses not just on profits, but also on the greater good.

Challenges for Social Equity Applicants and Licensees 

Currently, Black Americans make up 13% of the US national population, but own less than two percent of cannabis businesses owners, according to Leafly’s Jobs Report 2021. Why? There are five primary factors.

  1. In most states, cannabis licenses are expensive and difficult to get. The application process requires a team of experienced individuals to work on everything from finding and negotiating real estate contracts; to vetting and hiring architects, safety, and security consultants; to working with community stakeholders to gain local approval.
  2. After the pieces are in place, applicants have to write it all down, which is a challenge in itself. It is not uncommon for one state cannabis application to be over one hundred pages.
  3. Since cannabis is still federally illegal and listed as a Schedule 1 drug, it’s nearly impossible to get a business loan to fund the application process or, if an individual is lucky enough to get a provisional license, to renovate or build out cannabis cultivation, processing and/or retail facilities.
  4. Because of the low-income status of many social equity applicants, few have access to accredited investors or low interest loans.
  5. Finally, if an individual or organization makes it through the application process and receives both a license and funding to operate, they face ongoing operational challenges including ever-changing laws, rules and regulations. Maintaining compliance is a process in and of itself.

If cannabis industry stakeholders don’t make honest efforts to provide real solutions to these challenges in the near future, inequalities will proliferate.

Current State of Social Equity in the US Cannabis Industry

To help mend the harms of the War on Drugs and reduce the institutional challenges faced by marginalized individuals, some states have instituted social equity programs that prioritize cannabis business licenses to those previously incarcerated on cannabis-related convictions and/or those who live in zip codes with high incarceration rates for drug crimes. Some states broaden the social equity lens and include women- and veteran-owned businesses in social equity programs.

The National Association of Cannabis Businesses explains:

The goal of social equity laws is to ensure that people from communities disproportionately harmed by marijuana prohibition and discriminatory law enforcement are included in the new legal marijuana industry. Policymakers are working to address criticisms that outsiders are setting up legal cannabis businesses and profiting by doing the same things their less fortunate neighbors were arrested and given jail time for just a few years ago.

By prioritizing social equity applicants, our industry is starting to bridge the access gap and improve the odds that previously marginalized individuals will make it into the C-suite and other influential positions. But is it enough? Many argue that social equity programs won’t make a real difference until more programs include low-interest loans and/or provide access to capital sources and ongoing support after licensure.

Although social equity programs vary, many require applicants to live in a zip code with a high incarceration rate for drug crimes or have a state residency requirement, meaning that social equity applicants must have lived in the state for an established number of years before they can qualify for social equity status. In some states, municipalities are tasked with creating these programs as is the case in Los Angeles and Oakland, California.

While some states offer social equity applicants priority consideration for their licensing applications, others offer reduced application and licensing fees, technical assistance, entry into an incubator program specifically designed for social equity applicants and/or apprenticeship opportunities.

Although social equity programs focus on developing business leaders with marginalized racial and socioeconomic backgrounds, other components of these programs often include criminal justice reform, such as revising resentencing guidelines and expungement requirements for those with cannabis-related convictions. The MORE Act, for example, not only calls for federal legalization, but also for reassessing the legal status of cannabis-related convictions, arrests, and prison sentences.

US States with Cannabis Social Equity Programs

When Colorado and Washington voted in favor of adult-use cannabis legalization nearly a decade ago, lawmakers were tasked with drafting regulations for what a legal marketplace would look like in their respective states. Although legalization efforts focused on the inequities of prohibition, the War on Drugs, and the legal cannabis industry, social justice initiatives were not initially included.

Today, there are 37 states and municipalities, including Washington D.C., that have legalized medical cannabis. Nineteen of those states have also legalized adult-use cannabis. Recent data shows that one in four Americans consumes cannabis, suggesting that legalization efforts have started to normalize cannabis use among the US population.

Out of the 19 states with adult-use cannabis, 13 have developed social equity programs to help marginalized people become cannabis leaders in their markets. States that incorporated social equity programs into initial adult-use cannabis legislation include Massachusetts, California, New Jersey, New York, New Mexico, Michigan, Vermont, Illinois, Connecticut, Arizona and Virginia. Although Colorado and Washington’s laws initially did not include social equity programs, both states are now in the process of implementing them.

It’s important to note that not all US states with legal cannabis programs take the social equity approach. States with legal adult-use programs but without social equity programs include Montana, South Dakota, Maine, Nevada, Oregon and Alaska.

After Social Equity Licensure

For those social equity applicants who receive operational licensure, there is the ongoing issue of compliance. As if there were not enough pressure on social equity applicants and license holders, maintaining state-compliant businesses and developing internal policies and procedures that drive brand awareness and loyalty can be a challenge. The hard reality is that admission into a social equity program and even obtaining licensure does not ensure a business leader’s success. Besides increased access to capital, expanding social equity programs to include post-licensure support, at least for the first year or two, would improve the odds of long-term success.

All in all, social equity programs in the US cannabis industry have begun to make a difference and right some of the wrongs of the War on Drugs, but there is still work to be done. To build an industry that improves lives not only with cannabis products but also with financial opportunity, we must continue to prioritize and expand current social equity programs and fight for new social equity programs in all legal cannabis states.

Biros' Blog

CWCBExpo: Cut Ties with Roger Stone

By Aaron G. Biros
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Update: According to a press release, the CWCBExpo removed Roger Stone as the scheduled keynote speaker for the Los Angeles and Boston shows. We applaud their decision. 


Earlier today, the Minority Cannabis Business Association published a Facebook post: “As a result of CWC choosing this guy as their keynote speaker, MCBA has decided to withdraw from attendance and speaking roles at this conference. CWC, you know better so there’s no excuse not to do better.” We at Cannabis Industry Journal would like to voice our support for the MCBA and join them in their withdrawal. We will no longer be a media partner of any CWCBExpo events, unless they remove Roger Stone from the keynote slot.

Roger Stone’s Shady Past

The Facebook post from MCBA

Stone is quite the polarizing figure with a mile-long political career rife with controversy and extraordinary clientele. He co-founded a lobbying firm with Paul Manafort in 1980. In the 1970’s, Stone helped Richard Nixon get elected, the man responsible for the War on Drugs, and proceeded to serve in his administration. In the 1980’s, he never strayed far from controversy. He helped bribe lawyers to help get Reagan elected, and even did lobbying work on behalf of two dictators.

Fast-forward to the 2016 presidential election and Stone’s racism starts to come to light. Although he left the Trump campaign in August of 2015, he remained a loyal supporter. In February of 2016, CNN banned Stone from their network for disgusting tweets about correspondents. He called one CNN commentator a “stupid negro” and another an “entitled diva bitch.” MSNBC subsequently banned him from their network two months later. While he said he “regrets” saying those, he never issued a formal apology. A majority of his tweets are too offensive to republish, but if you need more proof, click here.

Roger Stone
(Photo credit: Barbara Nitke, Netflix)

He accused Khizr Khan, a Pakistani-American whose son was a war hero in Iraq, of being a “Muslim Brotherhood agent helping Hillary.” That is far from the only conspiracy theory he has circulated. He also said Huma Abedin, an aide to Hillary Clinton at the time, was in the Muslim Brotherhood. He’s written a number of books with rampant, false allegations, like Jeb! and the Bush Crime Family, The Clintons’ War on Women and The Man Who Killed Kennedy: The Case Against LBJ. His role in the Trump campaign is a part of the Russian election hacking congressional investigation. He’s credited with introducing Alex Jones, the falsehood-spreading, InfoWars conspiracy theorist, to Donald Trump. On the night of the election, he tweeted a racist photo that is not fit for republication.

Why is this relevant?

Because all of a sudden he is an advocate for cannabis legalization. In 2013, he started working in Florida to help legalize medical cannabis there. According to a CWCBExpo press release, when he keynoted their New York conference this year, he announced that he was starting a sort of bipartisan coalition to persuade President Trump to follow through with his campaign promises to respect states’ rights with regard to legal, medical cannabis. “I am going to be working with a coalition of Republicans and Democrats, progressives and libertarians, liberals, and conservatives to persuade President Trump to keep his campaign pledge, and to remind the president that he took a strong and forthright position on this issue in the election,” says Stone at the New York show. Dan Humiston, managing partner of CWCBExpo, says, “We are thrilled to have Roger Stone keynote again during CWCBExpo Los Angeles & Boston.”

CIJ reached out to the CWCBExpo for comment and Dan Humiston, managing partner, stands by their decision to keep him booked as the keynote speaker:

“Our objective as a show producer in the cannabis industry is we are trying to do whatever we can to help grant access to this plant for anybody that needs it. And to do that we feel that we have to be as inclusionary as we can possibly be. It is nothing more than that. I think there are some real benefits to the cannabis movement that will be gained by getting as many people under our tent as we can. Its funny how this plant brings people together who aren’t together under any other topic; it creates the strangest of bedfellows. The more dialogue and more opportunities to speak with people we can’t agree on any other topic with, the better. I think he is an asset to this movement. He has raised a lot of money. He is pushing Jeff Sessions really hard and he’s got Donald Trump’s ear.”

CIJ also reached out to Reverend Al Sharpton, who is booked for a keynote presentation at the same conference, and he had this to say: “I was not aware that the minority cannabis business association pulled out from the conference,” says Rev. Sharpton. “I spoke at the conference in New York, and I am working with Senator Corey Booker on the legalization of cannabis. Our communities have been directly affected by the criminalization of the drug.” He said he was unaware of the MCBA’s statements and asked for them to get in touch with him as soon as possible.

There’s no place for racism in the cannabis industry.

Yes, it’s great to have an ally of cannabis legalization who might have Trump’s ear. But no, we don’t want Stone’s help. There is no place for someone like him in the cannabis industry.

The historical implications of racism in the cannabis legalization movement should speak for themselves, but allow me to try and quickly summarize why this is so important. The word marijuana is actually a dated racist epithet that Harry Anslinger used back in the 1930’s to promulgate myths that the drug was used by people of color and fostered violence. “Marijuana is the most violence-causing drug in the history of mankind… Most marijuana smokers are Negroes, Hispanics, Filipinos and entertainers. Their satanic music, jazz and swing, result from marijuana usage,” said Anslinger, testifying before Congress. And so begins the era of “Reefer Madness” when the drug became illegal. Fast-forward half a century and the racism with cannabis continues. According to the Minority Cannabis Business Association, the War on Drugs is the main reason behind the huge incarceration numbers for people of color. “The U.S. ‘war on drugs’ — a decades-long policy of racial and class suppression hidden behind cannabis criminality — has resulted in the arrest, interdiction, and incarceration of a high percentage of Americans of color,” reads their agenda.

There are still a lot of racial problems the legalization movement is working to address. There are dozens of reasons why people of color have been wrongly persecuted due to the illegality of cannabis, but the point is this: The cannabis legalization movement needs to be a diverse, inclusive community that promotes equality and embraces all religions, races and ethnicities.

In choosing Roger Stone to keynote, the CWCBExpo is making a Faustian bargain and we don’t believe this is right. We need to stand by our morals; the ends don’t justify the means. The cannabis industry is no place for racism and we would like to see Roger Stone removed from the keynote position at CWCBExpo.