Weeding Out: Discrimination Complaints Against the Cannabis Industry
The burgeoning cannabis industry is facing claims of discrimination against minorities. The rapid industry growth is attracting challenges of non-diversity.
Here are a few barriers that activists allege make the cannabis industry a particularly harsh climate for minorities:
- Zoning Ordinances: Some localities have enacted zoning ordinances that limit the locations where brick-and-mortar dispensaries may operate. Minorities who cut through the red tape to obtain a license may be priced out or pushed into less desirable, less marketable locations.
- Limited Access to Banking Services: It is said that minorities have limited access to capital, due in part to restrictions on banking because marijuana remains federally illegal. Most banks do not work with cannabis businesses, forcing entrepreneurs to rely on cash-only operations or predatory lending. This increases financial risk and makes it harder to secure loans or investment capital. Minority-owned businesses are among those that struggle to grow or compete in an already challenging industry.
- Inequities in War on Drug Laws: Activists claim that marijuana prohibition disproportionately targets minority communities, despite similar usage rates, leading to mass incarceration and economic disenfranchisement. Additionally, the consideration of criminal histories in licensing decisions excludes those most affected by such policies.
To address these complaints, 19 states have adopted “social equity programs” aimed at providing qualified minority applicants with support through grants, fee reductions, and priority in licensing. However, the legality of these programs is frequently challenged by investors who view them as a disadvantage, and also as discriminatory if used against themselves. As a result, efforts to promote diversity in the cannabis industry remain mired in legal battles, leaving claims of discrimination unresolved.
These challenges echo those faced by employers attempting to implement diversity, equity, and inclusion (DEI) programs in their workplaces, where similar concerns about fairness and legality often arise. As the cannabis industry illustrates, finding common ground remains a pipe dream for now, as efforts to promote diversity remain caught between legal challenges and resistance from those who see these programs as unfair.