Washington state is set to issue a new round of retail cannabis licenses focused on promoting social equity. This initiative, part of the Cannabis Social Equity Program, aims to assist communities that have historically been marginalized due to the War on Drugs. The program, established by the state legislature in 2020 and updated in 2023, seeks to rectify imbalances within the legal cannabis market.
Samantha Guter, a communications consultant with the Washington State Liquor and Cannabis Board (LCB), emphasized the program’s goal: ‘We know that certain communities were disproportionately impacted by the war on drugs and are underrepresented in legal cannabis spaces. This program specifically seeks to award retail cannabis licenses to those who qualify.’
A total of 52 retail cannabis licenses will be available to qualifying applicants. The application period opens on June 2 and closes on July 1. To be eligible, applicants must hold a majority ownership in the proposed business and meet at least two of the following four criteria: 1. Resided in a designated area of Washington that was disproportionately affected by past drug policies for at least five years between 1980 and 2010. 2. Have an arrest or conviction record for a cannabis-related offense or be a family member of someone with such a record. 3. Have a household income below the state’s median household income. 4. Be classified as socially and economically disadvantaged under the state’s regulations.
Data from 2021 revealed that only 4% of legal cannabis businesses in Washington were Black-owned, highlighting the need for initiatives like this one to foster inclusivity in the industry.
The current round of licensing follows a previous effort in 2023 that awarded 45 licenses, which were for pre-existing licenses that had been forfeited or revoked. The upcoming 52 licenses represent a substantial growth opportunity for the state’s cannabis market, marking the largest expansion since its inception over a decade ago.
Senate Bill 5080, passed in 2023, broadened the scope of the program and initiated this second application window. While the current licenses are solely for retail operations, Guter indicated that further legislation might allow for new producer and processor licenses in the future.
This round of the Social Equity Program aims to create new business opportunities for individuals from communities most affected by previous drug policies, thereby promoting a more equitable cannabis market in Washington.
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