{"id":4638,"date":"2022-02-10T08:00:00","date_gmt":"2022-02-10T08:00:00","guid":{"rendered":"http:\/\/CAIiEONgkD4XbXaRBexSN6es1GgqGQgEKhAIACoHCAow3cCjCzCgy7sDMKy5hAc"},"modified":"2022-02-10T08:00:00","modified_gmt":"2022-02-10T08:00:00","slug":"limited-license-marijuana-markets-hamper-diversity-and-equity-study-says-marijuana-business-daily","status":"publish","type":"post","link":"https:\/\/thcinct.com\/?p=4638","title":{"rendered":"Limited-license marijuana markets hamper diversity and equity, study says – Marijuana Business Daily"},"content":{"rendered":"
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Twenty-seven states have limited-licensing schemes that lead to the lack of diversity in the marijuana industry, according to a new study on equity, underscoring a growing debate about how best to boost cannabis business participation among minorities and those affected by the war on drugs.<\/p>\n

The issue of license caps has exposed a fault line in the multibillion-dollar cannabis industry\u2019s effort to be inclusive, often pitting minority and entrepreneurial applicants against multistate operators better positioned to afford a pricey business permit in a limited-license market.<\/p>\n

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\u201cThe best thing you can do for social equity is open up the market,\u201d said Amber Littlejohn<\/a>, executive director of the Minority Cannabis Business Association (MCBA).<\/p>\n

The MCBA on Thursday issued a sweeping study<\/a> that examined equity in 36 state-legal marijuana markets. It identified limited licensing as one of the barriers to equity.<\/p>\n

The 39-page report<\/a> concluded that, so far, none of the 15 states with social equity programs have created an equitable cannabis industry.<\/p>\n

Social equity provisions especially are prominent in young and emerging recreational marijuana programs such as Arizona, California, Connecticut, Illinois, Massachusetts, Michigan, New Jersey and New York.<\/p>\n

Littlejohn stressed that limited licensing is one factor among many that hamper efforts to promote greater minority participation in the marijuana industry.<\/p>\n

But a consensus is growing among many that state licensing caps \u2013 which is the prevalent regulatory framework around the country \u2013 is a fundamental obstacle to equity and inclusion.<\/p>\n

\u201cI think we\u2019ve got it all wrong,\u201d Demitri Downing, founder of the Arizona Marijuana Industry Trade Association (MITA), told MJBizDaily<\/em>.<\/p>\n

\u201cWe should be moving away from the paradigm of limited licensing,\u201d Downing said.<\/p>\n

\u201cWe should promote a free market that is also helping social equity applicants\u201d with funding assistance and low barriers to entry.<\/p>\n

A number of MSOs emphasize limited-license markets as core to their strategy to prosper and grow.<\/p>\n

In regulatory filings, MSOs talk about pursuing highly populated, limited-license markets that also have recreational marijuana or are on the trajectory to legalize adult use.<\/p>\n

Markets frequently mentioned include Florida, Illinois, Massachusetts, New York, New Jersey, Pennsylvania and Virginia.<\/p>\n

Littlejohn noted that Illinois-based Green Thumb Industries (GTI) even used the word \u201coligopolistic markets\u201d as part of its strategy in a 2018 annual report, but the company since has quit using that term.<\/p>\n

For their part, MSOs increasingly are touting their efforts to promote industry equity.<\/p>\n

\u201cWe do not believe that limited licensing as a barrier to entry is inherently anti-social equity,\u201d Massachusetts-based Curaleaf Holdings wrote in a detailed email comment to MJBizDaily<\/em>.<\/p>\n

Curaleaf wrote that it advocates for license \u201cset asides\u201d for minority-owned businesses and noted that it has supported cannabis entrepreneurs through mentoring and legal and technical services.<\/p>\n

As for limited-license frameworks, Curaleaf wrote, social equity recipients \u201ccan benefit from those restraints on unlimited competition \u2013 which if left unchecked could have an even greater impact on equity goals.\u201d<\/p>\n

The media representatives for several other MSOs \u2013 including GTI and Florida-based Jushi Holdings \u2013 were contacted for comment but didn\u2019t immediately respond.<\/p>\n

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