Is cannabis living up to its commitment to inclusivity towards minorities?

By Andrew Ward

As the cannabis market matures and comes online, sources tell Benzinga that equity and inclusion continue to lag behind and that industry efforts in recent years often feel superficial.

Inclusion and equity are still lagging behind

“The United States cannabis community has never made any legal, ethical, or moral commitment to Black America,” said Scheril Murray Powell, Esq. at Doumar, Allsworth, Laystrom, Voigt, Adai and Dishowitz LLP.

Powell, chairman of the Broward County, Fla., Medical Marijuana Advisory Board, is calling for federal legislation to bring about uniformity in the marketplace. She highlighted a number of critical parameters, including a non-vertically integrated marketplace, no license caps, community redevelopment provisions, license resale testing, and impartiality.

Photo by Anete Lusina from Pexels

Roz McCarthy, founder and CEO of Black Buddha Cannabis and Minorities for Medical Marijuana, attributes the progress made so far to years of efforts by advocates.

Had it not been for the work of advocates from marginalized communities, McCarthy said, “I don’t think cannabis as we know it would help create a fairer and more equitable industry.”

Latoya Bellamy-Lockhart, VP of Human Resources at Jushi Holdings Inc, said cannabis has been touted as a remedy for past wrongs, primarily to address the negative effects of the drug war while creating economic benefits for marginalized communities. “In reality, it has shed light on how deep systemic racism permeates our country – we have failed to overturn the draconian policies of the past.”

The assessments are backed by years of industry data and reports.

A 2017 survey by Marijuana Business Daily found that black cannabis ownership was 4.3%. Since then, the numbers have hardly changed.

In a 2021 industry inclusivity report, MJBiz found that black-owned businesses outnumbered white-owned businesses in Colorado (2.7%), Michigan (3.8%), and Nevada (5.1%). were far inferior. Only the indigenous peoples were less represented in the three states.

MJBiz reported that minority board representation fell from 28% in 2019 to 13.1% in 2021. Mack Audena, COO and managing partner of MBA Growth Partners, said equity is key.

Photo by Priscilla Du Preez via Unsplash

He highlighted a February 2022 National Cannabis Equity Report prepared by the Minority Cannabis Business Association (MCBA) that aligned with Audena’s calls for lowering barriers to entry while addressing the lack of capital faced by blacks and other minority-owned businesses obtain. Audena said license caps and bans on those previously incarcerated also need to be lifted.

RELATED: 4 groundbreaking cannabis pioneers paying tribute to black history this month

While supporting inclusion, Audena said non-racial criteria, including veteran and socioeconomic status, can also interfere with equitable efforts.

“All of this has good intentions and merit, but they dilute the real intent of social justice.”

Trulieve Cannabis Corp CMO Valda Coryat supports removing barriers and calls for better access to capital. “There is a growing need for professional support systems to help minority entrepreneurs, and I would also like to see internships and minority partnership programs within established brands and operators.”

On its investor website, the company’s diversity statistics include 42% minority employees and 17% senior management.

Does it need a national regulation?

The MCBA notes that 15 of the 36 states legalized for medical use have social justice parameters. Thirteen out of 18 states that use adults have done the same.

Amber E. Senter, chairman and executive director of the Supernova Women minority empowerment group, advocates for equal rights policies across California and realized that a statewide model wouldn’t work, but the communication would. Senter commended Oakland and its Cannabis Regulatory Commission for listening to community feedback at monthly meetings.

“Oakland has been very careful to ensure that they get the feedback and listen to the operators’ issues,” Senter said.

Although some progress has been made, many feel that the system does not create a fair market. Nevertheless, success can only occur to a few.

RELATED: New York Senate clears Marijuana Licensing and Equity Act

“Even if the systems aren’t set up properly or the resources aren’t available… Chances are, I think some people like me will get lucky in a lot of ways,” said Portland, Oregon-based cannabis brand LOWD CEO Jesce Horton, who stated that happiness begins with obtaining licenses in space.

Photo by rez-art/Getty Images

Powell believes some discussions have highlighted promising inclusive regulations but often fall short when it comes to implementation.
“It is often the insufficient implementation or strategies of the mainstream participants that were not foreseen by the legislator that thwart the legislator’s will,” says the lawyer.

Several sources believe that federal regulations would help create a national equity model.

“I hope that one day, when legalization happens at the federal level, arrangements will be made to make sure we don’t leave a man behind,” Black Buddha’s McCarthy said.

Advocates lifting the doldrums

Until then, advocates and groups like MCBA, M4MM and others are pushing for equity and inclusion while holding companies accountable for their activities in the industry.

Minority cannabis advocacy group Cannaclusive has made several efforts recently, including Inclusivebase, a list of minority and women-owned cannabis companies, and The Accountability List, a living document promoting diversity, corporate social responsibility and… other community efforts undertaken by cannabis pursue brands.

RELATED: Cannabis Justice and the Promise of Reparations for the War on Drugs

DJ Howard, M4MM’s Florida State Director, is actively involved with the Accountability List, including contacting companies, scouring social media, press releases and other materials to confirm the findings.

Howard emphasized the importance of “ensuring that we hold people and brands accountable for the work they say they will do”.

This article originally appeared on Benzinga and has been republished with permission.