Business and Finance
Does legalizing marijuana help Black communities?
ARLINGTON, Wash. (AP) – When Washington state opened among the nation’s first legal marijuana stores in 2014, Sam Ward Jr. he was under electronic house arrest in Spokane, where he faced federal drug charges. He would soon be sent to prison to serve the lion’s share of his four-year sentence.
Ten years later, Ward, who’s black, recently posed on a blue and gold throne used for photos at his recent cannabis store, Cloud 9 Cannabis. He welcomed customers coming in for the early 4/20 deal. He also thought of being one in every of the primary beneficiaries of a Washington program to make the mostly white industry more accessible to those harmed by the war on drugs.
“It’s great to know that I’m the general manager of the store and the employees, the people, rely on me,” Ward said. “Just being a part of something makes you feel good.”
The essential argument for legalizing adult use of cannabis was to stem the harm attributable to disproportionate enforcement of drug laws, which has thrown hundreds of thousands of black, Latino, and other minority Americans into prison and perpetuated cycles of violence and poverty. Studies have shown that minorities were more more likely to be incarcerated than whites, despite similar rates of cannabis use.
However, efforts to help those most affected take part in and make the most of the legal marijuana industry have been stalled.
Since 2012, when voters in Washington and Colorado approved the primary ballot measures legalizing recreational marijuana, legal adult use has spread to 24 states and the District of Columbia. Almost all have “social equity” laws geared toward undoing the harm attributable to the drug war.
These provisions include expungement of criminal records for certain marijuana convictions, granting cannabis business licenses and financial assistance to those convicted of cannabis crimes, and directing marijuana tax revenues to impacted communities.
“Social equity programs are an attempt to reverse the harm done to Black and Brown communities that are over-policed and disproportionately impacted,” said Kaliko Castille, former president of the Minority Cannabis Business Association.
States have alternative ways of defining who can apply for marijuana licenses on a social equity basis, and so they will not be necessarily based on race.
In Washington, an applicant must own greater than half of the business and meet other criteria, resembling having lived for at the very least five years between 1980 and 2010 in an area with high rates of poverty, unemployment or cannabis arrests; you will have been arrested for a cannabis offense; or whose household income is below average.
Legal challenges to the permitting process in states like New York have slowed implementation.
With other cases resolved, New York — which regulators say issued 60% of all cannabis licenses to social equity applicants — faces one other lawsuit. Last month, the libertarian Pacific Legal Foundation alleged that it favored women- and minority-owned candidates along with those that could show the harm attributable to the drug war.
“These are the kinds of general racial and gender preferences that the Constitution prohibits,” said Pacific Legal attorney David Hoffa.
In other countries, deep-pocketed corporations operating in multiple states have obtained equity licenses, which can defeat the intent of the regulations. This 12 months, Arizona lawmakers expressed concern that predatory corporations were pressuring licensees to relinquish control.
Difficulty finding locations because of local prohibitions on cannabis businesses or obtaining bank loans because of ongoing federal prohibition also prevents applicants from opening stores. In some cases, the very aspects that qualified them for licenses – living in poor neighborhoods, criminal records and lack of assets – made it difficult to secure the cash needed to open cannabis businesses.
The framers of Washington’s pioneering law were busy stopping the U.S. Department of Justice from shutting down the market. They required background checks to maintain criminals away.
“In many early states, social equity was simply not an issue,” said Jana Hrdinova, administrative director of the Center for Law Enforcement and Drug Policy at Ohio State University’s Moritz College of Law.
Many states which have legalized recently – including Arizona, Connecticut, Ohio, Maryland and Missouri – have had social equity initiatives from the start.
Featured Stories
Washington launched its program in 2020. However, it was only in the previous couple of months that it issued its first social equity retail licenses. Only two have been opened, including Ward’s.
Washington Liquor and Cannabis board member Ollie Garrett called progress up to now disappointing, but said officials are working with applicants and calling on some cities to waive zoning bans so social cannabis businesses can open.
The state, which collects about half a billion dollars a 12 months from marijuana taxes, is making $8 million in grants available to social equity licensees to help cover expenses resembling security systems and renovations, in addition to business coaching.
It also directs $250 million to communities harmed by the drug war – including housing assistance, small business loans, job training and violence prevention programs.
Ward’s turnaround is one officials hope to repeat.
He testified that he began dealing marijuana as an adolescent. In 2006, a customer pulled a gun on him and Ward was shot within the hand.
He claims to be a single father of seven children and continued to deal drugs to support them until he was charged in 2014 – together with 30 others – in an oxycodone distribution conspiracy. He served almost three years in prison.
Ward, now 39, spent that point taking classes, exercising and training other inmates. After his release, he began a private training business, got a job at a restaurant and joined the semi-professional Spokane Wolfpack football team.
There he met Dennis Turner, a black entrepreneur who briefly owned the team. Turner worked as a restaurant manager on cruise ships, on the post office and as a corrections officer before investing his savings – $6,000 – into growing a friend’s medical marijuana. They used the proceeds to open a medical dispensary in Cheney, a small college town southwest of Spokane, that eventually became an adult-use marijuana retailer.
In Washington’s social equity program, Turner saw a possibility to make Ward a business executive. The two joined Rashel Palmer, whose husband co-owns the soccer team, in launching Cloud 9 for about $400,000. They selected Arlington, Washington – 515 kilometers away – because they are saying it’s a fast-growing city with limited competition in cannabis.
Ward “saw me as a guy he admired, who was in good business, self-made and out of the trenches, and he just wanted to beat my brains out,” Turner said.
Turner is working to open cannabis stores in New Mexico and Ohio as a part of social equity programs in those states. He hopes to sell them in the future for tens of hundreds of thousands of dollars. In the meantime, he plans to make use of his business to support local charities resembling the Boys and Girls Club of Arlington and the Carl Maxey Center, which give services to Spokane’s black community.
Another recent social equity licensee is David Penn Jr., 47, who helped persuade Pasco in South Central Washington to rescind its ban. Penn, who’s black, was arrested as an adolescent on crack charges. In 2011, he was kicked out of his apartment after stealing marijuana.
A friend who owns two other cannabis stores is financing the Penna store. Its location – a grimy constructing next to a gas station – still needs work. State subsidies will help, but they may not be enough.
“It’s like giving you a carriage, but you need horses to move it,” Penn said.