How cannabis owners can shape social justice

Future cannabis entrepreneurs should also prepare for the role they can play in creating an equitable cannabis industry.

Some aspiring Cannabiz owners are resource-rich, but there are also plenty of people who deserve a chance in this industry who haven’t been given a fair chance.

The state of Illinois serves as a real example of well-intentioned equity creation plans. But when it came down to it, many cannabis entrepreneurs and cannabis lawyers felt underserved.

Then the Cannabiz owners organized themselves and took matters into their own hands.

Getting Started with Equity in Illinois

On June 25, 2019, Illinois Governor JB Pritzker signed the Cannabis Regulation and Tax Act, or Illinois House Bill 1438. Pritzker coined that moment as “a new era of social justice that harms mostly colored people from war against drugs were inflicted, reverses “. . “

HB 1438 made Illinois the first state in the nation to incorporate social justice provisions into cannabis legislation. These regulations gave the Illinois cannabis industry an increase in equity that many states that were previously legalized did not take into account, including:

• pledges to wipe out an estimated 700,000 Illinois people convicted of marijuana offenses
• Using tax revenues to support historically disenfranchised communities
• Strengthening diversity in the industry by awarding application evaluation points to those who meet certain social justice qualifications.

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Cannabiz owners recognize incorrect measures

While this bill was heralded as progressive, lucrative and restorative, applicants for a social justice license quickly found that the bill was not as fair as promised. It contained loopholes that allowed established, deep-pocketed companies to defeat aspiring canna-biz entrepreneurs for licenses.

One of these loopholes allowed companies to qualify only by hiring a workforce composed of individuals who could self-qualify for social justice – what many applicants referred to as the “slave masters clause”. By recruiting these employees, companies could do better on social justice claims.

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As a result, out of over 900 pharmacy applicants, only 21 were selected to participate in the lottery for 75 licenses, and the select few did not reflect the diversity that the social justice program was designed to promote.

Cannabiz owners banded together and urged Illinois lawmakers to get it right. The pressure they put on was enough to get their government to hear more voices from the community and work harder to incorporate justice into the state program.

More votes, less injustice

Aspiring cannabis entrepreneurs spent months fighting to get Illinois to make amends for these mistakes. They stood up for their lawmakers, organized rallies, held press conferences and demanded justice. As a result, IL State Representative Lashawn Ford introduced the House Bill 1443.

That bill called for a reassessment of social justice claims, lower thresholds for participation in license lotteries, and created 110 new recreational marijuana licenses that cannabis companies could obtain.

HB 1443 also removed the slave master clause and replaced it with the classification of “Social Equity Justice-Involved” which is based on majority ownership rather than majority labor as they are people from disproportionately affected areas.

In May 2021, the updated Equity Act was passed, giving applicants for social justice a fairer chance. In a statement on how MP Ford created this law, he said it was drawn directly from “the language that comes from social justice petitioners.”

By centering on the voices of cannabis entrepreneurs, the legislation also resolved the biggest pain point that cannabis entrepreneurs face social justice – lack of access to capital.

The model established in Illinois has the power to become the new standard across the country, from the ideas proposed to the activism demonstrated. The Illinois cannabis market has got off to a unique start with its focus on equity, access, and the community voices that deserve their place in the cannabis industry.

Tips for cannabis owners looking for equity

• Organize with other owners to find strength in numbers
• Holding legislators accountable for real equity solutions
• Advocate for underrepresented owners in cannabis legislation

Are you ready to start your cannabis in Illinois?

With the creation of the Cannabis Social Equity Loan program, social justice cannabis entrepreneurs in Illinois can gain access to financial assistance in the form of soft loans and technical assistance.

The Illinois Department of Commerce and Economic Opportunity (DCEO) has allocated over $ 30 million to raise equity and opportunities for entrepreneurs looking to get into the Lincoln country cannabis industry. The loans are for social equity licensees only and are serviced and granted by Good Tree Capital.

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