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Washington Governor Approves Legislation to Broaden Social Equity Licenses

On April 23, 2021, Washington Governor Jay Inslee signed into law a bill that aims to broaden social equity licenses in the state’s cannabis industry. The legislation, known as House Bill 1443, is designed to address the racial and social disparities that have been prevalent in the cannabis industry since its inception.

The bill expands the eligibility criteria for social equity licenses, which are intended to provide opportunities for individuals from communities that have been disproportionately impacted by the war on drugs. Under the new law, individuals who have been convicted of a cannabis-related offense or who have lived in an area with high rates of cannabis-related arrests will be eligible for social equity licenses.

In addition, the bill creates a new category of licenses for “micro-cannabis” businesses, which are small-scale operations that are intended to provide opportunities for individuals who may not have the resources to start a larger cannabis business. These micro-cannabis businesses will be subject to lower licensing fees and will be allowed to operate in residential areas.

The legislation also includes provisions to promote diversity and inclusion in the cannabis industry. For example, it requires the state’s Liquor and Cannabis Board to develop a plan to increase the participation of women, people of color, and other underrepresented groups in the industry. The board will also be required to collect data on the demographics of license holders and report on its efforts to promote diversity and inclusion.

The passage of House Bill 1443 is a significant step forward for social equity in the cannabis industry. The war on drugs has had a disproportionate impact on communities of color, and the legalization of cannabis has created new opportunities for wealth creation and economic development. However, without intentional efforts to address the historical injustices that have occurred, these opportunities may not be accessible to everyone.

By expanding social equity licenses and promoting diversity and inclusion in the industry, Washington is taking a proactive approach to addressing these issues. Other states should follow suit and take similar steps to ensure that the benefits of the cannabis industry are shared equitably among all members of society.

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