Marijuana Law, Policy & Reform

Editor: Douglas A. Berman
Moritz College of Law

Sunday, August 21, 2016

Noting the lack of racial diversity in recipients of first Maryland medicial marijuana licenses

This Washington Post article, headlined "Missing from Maryland’s legal marijuana growers? Black business leaders," reports on an all-too-common business pattern that tends to emerge as a state gets started with modern marijuana reforms.  Here is how the article gets started:

Maryland set up its legal medical marijuana industry with hopes of racial diversity and equity in spreading profits, but none of the 15 companies that were cleared this week for potentially lucrative growing licenses is led by African Americans.

Some lawmakers and prospective minority-owned businesses say this is unacceptable in a state where nearly a third of the population is black, the most of any state with a comprehensive legal pot industry.  They say the lack of diversity is emblematic of how, across the country, African Americans are disproportionately locked up when marijuana use is criminalized yet are shut out of the profits when drug sales are legalized.  “We are not going to see this industry flourish in the state of Maryland with no minority participation,” said Del. Cheryl D. Glenn (D-Baltimore), chairwoman of the Legislative Black Caucus.

Glenn was a key player in the legalization battle, and the commission that awards medical marijuana business licenses and oversees the industry is named after her mother, Natalie LaPrade, who died of cancer.  She is considering filing a legal injunction to halt the licensing process and is weighing other options, such as pushing the commission to award additional licenses to minority-owned companies.

The law legalizing medical marijuana says regulators should “actively seek to achieve” racial and ethnic diversity in the industry.  But the commission did not provide extra weight to applications submitted by minority-owned businesses because a letter from the attorney general’s office suggested that preferences would be unconstitutional without there being a history of racial disparity in marijuana licensing to justify the move.

A spokeswoman for the Maryland Medical Cannabis Commission said there will be future opportunities to expand minority participation when the agency awards dispensary licenses and when it considers issuing more cultivation licenses in 2018 if supply doesn’t meet demand.  Businesses must also submit annual reports on the racial breakdown of their ownership and workforce, providing a more comprehensive look at the industry’s diversity.  “The Commission believes a diverse workforce is in the best interest of the industry,” said Vanessa Lyon, the spokeswoman.

But Glenn and other critics say the state hasn’t done enough to ensure diversity in the blossoming business that’s already worth billions nationwide.

http://lawprofessors.typepad.com/marijuana_law/2016/08/noting-the-lack-of-racial-diversity-in-recipients-of-first-maryland-medicial-marijuana-licenses.html

Business laws and regulatory issues, Medical Marijuana Commentary and Debate, Medical Marijuana State Laws and Reforms, Race, Gender and Class Issues | Permalink

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