// SOCIAL EQUITY //
Creating Inclusive Policy Have we lost focus on why social equity programs were established? By Gia Morón Since the emergence of the legal cannabis industry, community leaders from marginalized communities have called out the imbalance and lack of representation of ownership. These advocates created a new awareness that, in addition to safe and legal access, a focus needed to be placed on social equity, justice, and reinvestment as an integral part of any new legislation. But it has been an uphill battle. As more states legalize medical and adult-use cannabis, Black and Latinx cannabis activists continue to highlight unfair processes and selections of licensees. Diverse application teams and advocates remain committed in lobbying for change in these patterns of injustice. It is a cycle seen too many times state over state, and industry leaders are raising their voices louder to demand fair and equitable opportunities pushing for new or amended legislation. Issues often lie in how policy is written, what’s included, and what’s left out of legislation. As we see today, states are beginning to respond to advocate demands for social equity and justice. In my home state of New York, for example, several organizations, including Women Grow, came together to push for change. After several years of lobbying, the Marijuana Regulation Taxation Act (MRTA) passed. This piece of legislation was critical for impacted communities across the state. The bill offered social equity applicants options at various entry points in the soon-to-be-legal New York adult-use market. Like many states, New York’s current entry price is astronomical for the average person. So, where would that leave a start-up business owner, who has no access to the kind of capital and other resources needed to ensure success in this emerging market? New York currently has ten medical license holders. Only one company is women owned and led. All of the current license holders will 62
Cannabis & Tech Today // Winter 2021
Photo: iStockphoto.com/kate_sept2004
have access to the New York adult-use market when it officially launches in the near future. To date, among license awardees in New York, there is not a single person of color. Yet the state remains one of the most diverse in the country with over 300 languages spoken. It was the advocates who worked tirelessly with NY legislators Majority Leader Crystal Peoples-Stokes and Senator Liz Krueger — who sponsored the MRTA bill. In March of 2021, the MRTA passed in New York, making history. Social Equity was a big part of this bill, with 50% of the adult-use licenses earmarked for social equity applicants. While traditional vertical licenses will not be awarded, the structure was broken down to create affordable options for smaller operators. This bill also includes micro licenses and cooperative options. Other states saw this as a breakthrough in the framework of how social equity can work for the
people most impacted. New York is still awaiting regulations for operators but this bill serves as a first step in a better direction for applicants. Why is this important? When the industry discusses the so-called war on drugs, it is actually referring to a war on people — predominantly Black and Latinx from low-income communities. Through advocacy, cannabis social equity was developed to ensure that people and communities most harmed have an opportunity to participate in the expanding number of states we see entering into this market. According to an article in Cannabis Industry Journal, “Where Are We Now? Social Equity in the US Cannabis Industry,” of the 19 states with adult-use cannabis, 13 have social equity programs created to help marginalized people enter and lead in the industry. In its 2021 Jobs Report, Leafly touches on Black ownership in the industry, citing racial
