The Fight to Increase Racial Equity

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The Fight to Increase Racial Equity Within Cannabis Policy

Danielle Browne and Leyana Casey, MPH, John R. Lewis Social Justice Fellows
July 2024

Introduction

The United States has a complex and contentious history surrounding the legalization of marijuana. This history, intertwined with initiatives like the War on Drugs and the AntiDrug Abuse Act, has disproportionately affected Black communities—resulting in higher arrest rates and harsher sentences. The effects of this movement can be seen decades later as Black people are 3.6 times more likely to be arrested for marijuana possession than their white counterparts despite similar consumption rates (American Civil Liberties Union [ACLU], 2020). Since 1996, there has been a growing trend towards the legalization of both medicinal and recreational marijuana use across the United States. Currently, 37 states, alongside Washington, D.C., have permitted the legalization of medical cannabis, while 24 states and D.C. have accepted cannabis’ recreational use (DISA, 2024). Even with this widespread legalization, Black communities continue to face significant criminal legal barriers. For example, Black people accounted for nearly 39 percent of marijuana possession arrests in 2020 (Edwards, 2022). Moreover, economic challenges persist in entering the cannabis industry, including prohibitive fees, restrictions on individuals with drug-related convictions, and limited access to capital.

Marijuana History Timeline:

1913:

Marijuana was legal throughout the United States under state and federal law; however, due to antiimmigrant sentiments states began outlawing marijuana.

1930:

30 states outlawed marijuana.

1972:

In July, President Richard Nixon rejected the Shafer Commission’s recommendations that the personal use of marijuana should be decriminalized.

2012:

1984:

1970:

• Congress repealed most of the mandatory penalties for drug-related offenses.

• The 1970 Controlled Substance Act classified marijuana as a Schedule 1 drug, designating it as a substance with no currently accepted medical use and a high potential for abuse.

1937:

Congress enacted the Marihuana Tax Act, outlawing marijuana at the federal level.

1952-1956:

The 1952 Boggs Act and the 1956 Narcotics Control Act established mandatory sentences for drug related violations—a first time offense for possession carried a minimum sentence of 2-5 years in prison and a fine of up to $20,000.

1986:

In coordination with the Comprehensive Crime Control Act, the Anti-Drug Abuse Act raised federal penalties for marijuana possession and dealing, basing the penalties on the amount of the drug involved. For example, possession of 100 grams of marijuana received the same penalty as possession of 100 grams of heroin.

Several states legalized medical marijuana through ballot initiatives or legislative action. Washington and Colorado became the first two states to approve recreational marijuana use. This marked a significant milestone in the legalization movement, demonstrating that public opinion was shifting towards greater acceptance of cannabis legalization beyond medical use.

2000:

Following the passage of Proposition 215, other states began to enact their own medical marijuana laws, leading to a gradual expansion of access to medical cannabis across the country.

In October, President Ronald Reagan signed the AntiDrug Abuse Act, allocating $1.7 billion to combat the ongoing war on drugs.

1996:

California made history by passing Proposition 215 making it the first state to legalize medical cannabis.

VIRGINIA SNAPSHOT

Virginia became the first state in the South to legalize marijuana; Black adults accounted for nearly 60 percent of marijuana-related cases before the state’s general district and circuit courts, despite making up only 20 percent of the state’s population (Elwood & Harden, 2022).

MARYLAND SNAPSHOT

In 2023, Black people in Maryland were nearly 3 times more likely to be charged with a cannabis related crime and 2.5 times more likely to be found guilty of a cannabis-related violation than their white counterparts (Department of Legislative Services, 2023).

Marijuana Legalization in the U.S.

The RESPECT Resolution

On January 11, 2024, Representatives Barbara Lee (D-CA-12) and Earl Blumenauer (DOR-3), co-chairs of the Congressional Cannabis Caucus, reintroduced the Realizing Equitable & Sustainable Participation in Emerging Cannabis Trades (RESPECT) Resolution. The resolution aims to prioritize equity within the legal cannabis marketplace, rectify disparities, and mitigate the lasting effects of the War on Drugs, particularly within communities of color. Addressing these disparities is important for fostering fairness and equity, necessitating a focus on reducing the harms imposed on the Black community, and establishing equitable access to the growing multi-billion-dollar cannabis industry. The RESPECT Resolution offers a pathway for economic empowerment while concurrently dismantling racial biases ingrained in drug enforcement policies—its overarching goal being to cultivate a fairer and more inclusive cannabis industry.

STATISTICS

The War on Drugs has cost the United States an estimated $1 TRILLION (Lee, 2021).

Federal placement of cannabis in the Controlled Substances Act is often cited as the reason more than HALF OF ALL STATES do not automatically legalize cannabis (Adlin, B., 2023).

Economists estimate that the criminal justice expenditures related to marijuana prohibition costs roughly $6 BILLION per year (Miron, 2005).

Black men receive drug sentences that are 13.4 TIMES longer than sentences given to white men for the same offenses (U.S. Sentencing Commission, 2023).

Decriminalizing cannabis possession has led to a significant reduction in total arrest rates, with a decrease of OVER 70% among adults (Gunadi & Shi, 2022).

Disproportionate arrest and conviction rates make it DIFFICULT FOR PEOPLE OF COLOR to enter the legal cannabis marketplace (Minority Cannabis Business Association [MCBA], 2019).

KEY LEGISLATION HIGHLIGHTS

Presently, the RESPECT Resolution has garnered support from six Democrat cosponsors. In addition to this support, the resolution has been endorsed by the Drug Policy Alliance, the National Organization for the Reform of Marijuana Laws (NORML), Better Organizing to Win Legalization (BOWL) PAC, and the Minority Cannabis Business Association.

H.RES. 960 CONTAINS THE FOLLOWING PROVISIONS:

• Eliminating broad felony restrictions for licensing;

• Focusing restrictions on entering the market to those, determined on a case-by-case basis for both licenses and employees, with criminal convictions that are relevant to owning and operating a business;

• Prohibiting previous cannabis convictions from consideration as justification for a denial of a license;

• Creating an automatic process, at no cost for the individual, for the expungement or sealing of criminal records for cannabis offenses that is inclusive of individuals currently on parole or under any probationary agreement, for cannabis offenses;

• Establishing a process for resentencing persons serving sentences for cannabis convictions and redesignating of penalties for persons previously convicted of cannabis-related crimes for which the penalties have been reduced or removed;

• Eliminating suspicion-less drug testing for non-safety-sensitive employment positions;

• Eliminating punishment or other penalization for persons currently under parole, probation, or other State supervision, or released on bail awaiting trial, for conduct otherwise allowed under State cannabis laws;

• Setting aside a percentage of the tax revenue from cannabis sales to be reinvested in communities that have been most affected by cannabis arrests and the drug war, which most frequently have been communities of color, including programs for job training, reentry services, expungement expenses, public libraries, community centers, programs and opportunities dedicated to youth, and health education programs;

• Using a percentage of tax revenue to establish a special fund to provide small business investments to support people of color entering the legal marijuana industry;

• Establishing cannabis regulatory and oversight bodies and commissions that reflect the racial, ethnic, economic, and gender makeup of the surrounding community;

• Creating employment and subcontracting requirements for cannabis licenses in order to use the ancillary business activity generated by the cannabis industry to employ people of color; and

• Including provisions designating spaces for public consumption, either by the licensing of social entities or by creating these spaces.

STATISTICS

The trajectory of the legal marijuana market estimates $100 billion in revenue by 2030 (Grand View Research, 2024).

In 2017, white individuals owned 81 percent of marijuana businesses in the U.S., while Hispanic, Black, and Asian individuals owned 5.7 percent, 4.3 percent, and 2.4 percent respectively (McVey, 2017).

Cannabis businesses are often limited by numerous laws, taxes, permit applications and licensing fees which can total more than $100,000, with annual renewal fees also exceeding $100,000 (CT Corporation Staff, 2023; Marijuana Policy Project, 2024).

As of 2021, white men made up 70 percent of top executives at 14 percent of the largest cannabis companies by market value in the U.S. and Canada (Berke & Lee., 2021).

KEY LEGISLATION IMPACTS ON THE BLACK COMMUNITY

• Fosters inclusivity and reduces barriers for aspiring Black entrepreneurs in the cannabis sector. Two pivotal aspects of the resolution are 1) creating employment and subcontracting requirements to hire people of color and 2) establishing cannabis regulatory and oversight bodies and commissions that reflect the racial, ethnic, economic, and gender makeup of the surrounding community. By doing so, H.Res. 960 facilitates a more expansive and diverse pool of entrepreneurs to be funneled into the cannabis industry. In addition, using tax revenue to establish Black-owned marijuana business ensures access to and diversity within the cannabis sector.

• Invests in Black communities. The resolution prioritizes allocating a percentage of tax revenue to establish a special fund for small business investments that support people of color and reinvest in communities that have been most affected by cannabis arrests and the drug war. Funding small business investments allow Black entrepreneurs the opportunity to invest in their communities. Furthermore, tax revenue generated from marijuana sales will be allocated to investing in job training programs, reentry assistance services, expungement expenses, public libraries, community centers, youth programs, and health education programs, thus acknowledging and combating existing socioeconomic disparities.

• Reduces disparities in arrests, sentencing, and reentry practices. The resolution holds the promise of decreasing the number of marijuana-related arrests within the Black community. By diminishing arrest rates, mitigating punishments, and addressing reentry challenges for individuals with prior marijuana-related charges, it aims to rectify systemic injustices within the criminal justice system. This provides much-needed relief to those disproportionately affected by cannabis-related convictions. H.Res.960 eliminates punishments and penalties for persons currently under state supervision and redesignates penalties for persons previously convicted of cannabis-related crimes. It also ends suspicion-less drug testing for non-safety-sensitive employment positions, seals criminal records for cannabis offenses, and establishes a process for resentencing persons serving sentences for cannabis convictions.

• Destigmatizes cannabis. The resolution destigmatizes cannabis by including provisions that designate spaces for public consumption. This could include licensing social entities or establishing specific spaces for cannabis use. By normalizing the recreational and social aspects of cannabis consumption, the resolution seeks to diminish the stigma associated with use.

Conclusion

The evolving patchwork of state laws reflects the ongoing shift in societal attitudes and policies surrounding cannabis. States continue to navigate the delicate balance between acknowledging medical necessity, respecting personal freedoms, and ensuring public safety in their approach towards cannabis regulation. Federal initiatives like H.Res. 960 provide a comprehensive and forward-looking approach to address disparities—offering a potential pathway for Black individuals to enter the cannabis industry on more equitable terms. With hope on the horizon, recent trends indicate a surge in Black entrepreneurship, particularly among Black women, suggesting a promising future for the growth of Blackowned businesses in the cannabis sector (Smith, M., 2024). H.Res. 960, by facilitating the movement of more Black entrepreneurs into the cannabis sector, has the potential for Black micro-businesses to take hold and thrive in the free market. Moving forward, it’s crucial to continue advocating for policies that foster inclusivity, reduce barriers, and promote economic empowerment within marginalized communities.

REFERENCES

ACLU., (April 16, 2020). A Tale of Two Countries: Racially Targeted Arrests in the Era of Marijuana Reform. ACLU. https:// wp.api.aclu.org/publications/tale-two-countries-racially-targeted-arrests-era-marijuana-reform

Adlin, B. (2023, December 13). Federal Scheduling of Marijuana Could Lead to Cascade of State-Level Changes. Marijuana Moment. https://www.marijuanamoment.net/federal-rescheduling-of-marijuana-could-lead-to-cascade-of-state-levelchanges/

Bailey, J. (2021). Seeds of Change: Strategies to create an equitable cannabis industry. Leafly, Inc. https://leafly-cmsproduction.imgix.net/wp-content/uploads/2021/06/25091621/Leafly-2021-white-paper-Seeds-Of-Change-by-JanessaBailey-1.pdf

Berke, J. & Lee, Y. (2021, June 30). Top executives at the 14 largest cannabis companies are overwhelmingly white men, an Insider analysis shows. Business Insider. https://www.businessinsider.com/cannabis-industry-diversity-executivesare-white-male-insider-inequity-analysis-shows-2021-6?op=1

Congress.gov (2024, January 11). RESPECT Resolution, H.Res.960, 118th Cong. https://www.congress.gov/bill/118thcongress/house-resolution/960ext?s=5&r=1&q=%7B%22search%22%3A%22Realizing+Equitable+%26+Sustainable+ Participation+in+Emerging+Cannabis+Trades+%28RESPECT%29+Resolution%22%7D

Congressional Research Service. (2022, October 07). The Schedule I Status of Marijuana. CRS. https://crsreports. congress.gov/product/pdf/IN/IN11204

Crane, M. (2024, January 3). Drug Scheduling & Classification (List of Schedule I-V Controlled Drugs). American Addiction Centers. https://americanaddictioncenters.org/prescription-drugs/classifications

CT Corporation Staff. (2023, January). Cannabis business license requirements. Wolters Kluwer. https://www. wolterskluwer.com/en/expert-insights/what-are-business-license-requirements-for-cannabis-businesses

Department of Legislative Services. (2023). Criminal Law – Cannabis-Related Offenses – Civil Penalties. Maryland.gov. https://mgaleg. maryland.gov/Pubs/BudgetFiscal/2023RS-SB0073-REIN.pdf

DISA. (2024, February 1). Marijuana Legality by State – Updated Feb 1, 2024. DISA. https://disa.com/marijuana-legality-bystate

Edwards, K. (2022). Clear majorities of Black Americans favor marijuana legalization, easing of criminal penalties. Pew Research Center. https://www.pewresearch.org/short-reads/2022/06/08/clear-majorities-of-black-americans-favormarijuana-legalization-easing-of-criminal-penalties/

Elwood, Karina, and John D. Harden. “After Virginia Legalized Pot, Majority of Defendants Are Still Black.” Washington Post, 19 Oct. 2022. www.washingtonpost.com, https://www.washingtonpost.com/dc-md-va/2022/10/16/virginia-marijuanaenforcement-disparities/

Gunadi, C., & Shi, Y. (2022). Cannabis decriminalization and racial disparity in arrests for cannabis possession. Social Science & Medicine (1982), 293, 114672. https://doi.org/10.1016/j.socscimed.2021.114672

Harris, K. (2022, November 16). 317,793 People Were Arrested for Marijuana Possession in 2020 Despite the Growing Legalization Movement. Baker Institute. https://www.bakerinstitute.org/research/317793-people-were-arrestedmarijuana-possession-2020-despite-growing-legalization

Lee, J. (2021, June 17). America has spent over a trillion dollars fighting the war on drugs. 50 years later, drug use in the U.S. is climbing again. CNBC. https://www.cnbc.com/2021/06/17/the-us-has-spent-over-a-trillion-dollars-fighting-war-ondrugs.html

Marijuana Policy Project. (2024). Breakdown of application, licensing, and renewal fees in adult-use states. MPP; Marijuana Policy Project. https://www.mpp.org/issues/legalization/breakdown-application-licensing-renewal-fees-adultuse-states/

CPAR | The Fight to Increase Racial Equity Within Cannabis Policy

McVey, Eli. (August 2017). Women & Minorities in the Marijuana Industry. Anne Holland Ventures Inc. https://mjbizdaily.com/wpcontent/uploads/2017/10/Women-and-Minorities-Report.pdf

Minority Cannabis Business Association. (2019). Ten Model Municipal Social Equity Ordinances. Minority Cannabis Business Association. https://business.ca.gov/wp-content/uploads/2021/12/MCBAs-Ten-Model-Municipal-SocialEquity-Ordinances.pdf

Miron, J. A. (2005). The Budgetary Implications of Marijuana Prohibition. Harvard University. http://web.archive.org/ web/20110718082631/http:/www.prohibitioncosts.org/mironreport.html

Rep. Lee, B. (2024, January 12). Reps. Lee, Blumenauer reintroduce respect resolution to encourage equality & inclusion in cannabis industry. Congresswoman Barbara Lee. https://lee.house.gov/news/press-releases/reps-lee-blumenauerreintroduce-respect-resolution-to-encourage-equality-and-inclusion-in-cannabis-industry

Smith, M. (February 18, 2024). Black women are the fastest-growing group of entrepreneurs in the U.S — meet 3 who grew their side hustles into successful businesses. CNBC. https://www.cnbc.com/2024/02/18/black-women-are-thefastest-growing-group-of-entrepreneurs-in-the-us.html

Substance Abuse and Mental Health Services Administration. (2022, January 11). 2020 NSDUH Detailed Tables. SAMHSA. https://www.samhsa.gov/data/report/2020-nsduh-detailed-tables

U.S. Sentencing Commission. (2023, November 14). 2023 Demographic Differences in Federal Sentencing. Ussc.gov. https://www.ussc.gov/research/research-reports/2023-demographic-differences-federal-sentencing

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