Social Equity & its Blazin’ Hot Necessity in the Cannabis Industry

It’s become increasingly apparent in recent years that cannabis has the power to bring people together on a massive scale. Although we’ve broken the seal on cannabis with legalization, decriminalization, and more… How do we move forward? What’s the best step in revolutionizing how we ethically commodify cannabis?

The answer is simple but incredibly multifaceted: social equity.

What is social equity? According to the National Academy of Public Administration, it’s “the fair, just, and equitable management of all institutions serving the public directly or by contract; and the fair and equitable distribution of public services, and implementation of public policy; and the commitment to promote fairness, justice, and equity in the formation of public policy.” To understand social equity at its core in the modern-day cannabis industry, we must analyze and understand the pretenses under which it had to prevail and become what it is today.

I had the pleasure of connecting with two illustrious figures that are inciting positive change for social equity in the cannabis industry: Ru Johnson, a cannabis & music industry brand operative, and Michael Diaz Rivera, a former teacher and cannabis convict who turned into a reputable owner of Better Days Delivery. Together we unpacked those crucial inner machinations of social equity and what that looks like through non-performative actions and initiatives in cannabis.

By Hannah Conroy

“The idea of social equity is to put at the front of the line those who were most affected by the War on Drugs. The issues that arise are around the definition(s) of those who were most affected. Race, arrests, income-based, etc., convictions are where the issues of conflict arise,” says local cannabis activist and PR/marketing guru Ru Johnson of Roux of Consulting.

Over the years, many people have come to recognize the racial and political objectives of the War on Drugs—ESPECIALLY the communities most affected. Michael Diaz Rivera himself experienced the consequences of a cannabis conviction at just the age of 19 with subsequent jail time. Although he’s persevered, stereotypes surrounding cannabis negatively impact how his work is seen as positive and necessary.

“It (advocating for social equity in cannabis) has been an empowering reminder that despite the negative stigma that comes with being a felon, and even being a ‘social equity business owner’ I have a voice, and that I am a leader and stakeholder in the community,” says Diaz Rivera. “Hopefully, my work and the work of others can create opportunities for economic advancement and address systemic inequalities that have historically held back certain groups of people, my people.”

Because of laws and all of the advocacy (even behind bars), we’re now starting to see an accumulation of policies and people profiting from cannabis more than ever before.

Those who are, or were, affected can participate with decreased barriers such as funding and access to licensing for cannabis businesses. This is a vital leveling of the playing field to help those who can afford to repair what’s been broken by this maliciously long sociopolitical war.

Now that hindsight is (4)20/20, we can further examine how to properly dismantle these systems in place. Unfortunately, due to state and federal legislation, these initiatives vary state by state, which makes synchronicity harder to achieve.

“The same barriers to entry that affect the economic security of disenfranchised communities outside of cannabis also exist WITHIN cannabis,” explains Johnson

For example, New York approved social equity program regulations that retain Conditional Adult-Use Retail Dispensary (CAURD) licenses for applicants with previous sentences of cannabis-related offenses or who have family members with cannabis convictions. That eliminates the long-term damage of criminal cannabis charges for those who want to break through in the industry.

Unlike New York, Colorado allows applicants to qualify under extremely ambiguous parameters. Specifically, parameters that eradicate one of the largest intersections prevalent in the industry.

“Colorado’s misstep is the omission of race-based criteria because the vague criteria around arrests have created an additional vacuum when it comes to those who receive licenses. The arrest criteria are written in such a fashion that those who weren’t actually affected by the War on Drugs are still put at the front of the line,” Johnson says.

This loophole explains why cannabis delivery in Colorado took so long to come to fruition as well; The only available licenses were slated for social equity applicants. That allowed non-minority-owned cannabis companies to establish everything in-house. This not only saves them money but also gives them an edge in the social equity game, despite the intention behind allowing social equity delivery licenses.

Additionally, Colorado’s exclusive list of applicants has a skewed chance of eligibility, which they do NOT publicize. Why? Because the truth of the matter is, they don’t want consumers to know that the social equity they crave so badly still benefits participants who don't need it. Are we shocked? Therefore, it’s crucial to acknowledge protective measures alongside the inclusive ones to create that happy medium we need for social equity to actually exist.

“Social equity activism (behind the scenes) begins with policy and understanding the most important issues facing business owners and interested parties in the licensed industry. To remove the barriers to entry for minority business owners, policies need to support the survivability of these businesses in a regulated industry,” explains Johnson.

A prime example of a recent policy facing business owners is bill HB23-1020. This bill’s proposal for integral social equity licenses in regulated cannabis also amends eligibility requirements for people to qualify as social equity licensees. As a result of a bill like this, licensing licensees, the department of revenue, and other institutions can all play their roles in improving the process of acquiring social equity licenses. However, this bill certainly has its flaws.

“I am wondering why delivery to hotels and other non-private residences isn't included in the current version of the bill (HB23-1020). This would support Colorado's cannabis tourism industry and provide more accessibility to patients who need delivery services right now… Disabled and immunocompromised people who need their medication but can't go into a dispensary would greatly benefit from statewide delivery. I also have questions about the inclusion of language to empower and hire the formerly incarcerated, as well as the lack of nurseries or micro-licenses for social equity operators in the cultivation space,” adds Diaz Rivera.

Combating these monopolies to assert the representation so many can benefit from starts with bridging the gap between those social equity applicants and the resources they need. Their ability to access capital, rent property, and so much more will help them to improve cannabis consumer habits.

“The most distinct intersection between racial justice and the cannabis industry is bridged by the economic and income-based factors connected by access to the industry. The numbers of arrests and the demographics of those arrested and convicted will likely show the neighborhoods most affected by the war on drugs are also delineated by race,” says Johnson.

Social equity is so much more than a classification designed to give back to those affected by the War on Drugs. Essentially, it's meant to rectify the endless, irre- versible wrongs our country has committed to keeping things disproportionate. By understanding cannabis social equity’s pivotal function in the industry, you can understand the game is inherently rigged. And more importantly, how much our oppressed communities deserve our support.

If you or someone you know wants to learn more about social equity in cannabis, Michael Diaz Rivera can connect you to the right resources. His own personal faves include Colorado Social Equity Group, Good Business Colorado, Colorado Norml, and Minorities for Medical Marijuana. The Colorado Department of Regulatory Agencies (DORA) has information on social equity in cannabis on its website, and organizations such as the Minority Cannabis Business Association and the National Cannabis Industry Association have resources and events focused on social equity in the industry.

“It's most important that you show up and execute. Engage with and listen to communities that have been historically impacted by the war on drugs to understand their perspectives and needs. Work with us to create the industry that we all deserve,” adds Diaz Rivera.

You can find Ru Johnson as @rouxblack on Instagram and Michael Diaz Rivera’s business Better Days Delivery at @bettersaysdeliveryco on Instagram.