Why it matters: Washington’s governor has signed a new law that will add up to 52 cannabis shops between 2024 and 2032 to the state’s already legal adult-use market. Specifically, the law is intended to encourage social equity in the state’s cannabis program as businesses owned by Black applicants only make up 4% of existing retail cannabis licenses.
What they are saying: The new law requires that eligible individuals own and control at least 51% of a company in a disproportionately impacted area (DIA) so that the state’s cannabis licencing program is more inclusive for marginalized business owners.
The big picture: The US’ cannabis industry is growing quickly, forecasted to be worth almost $51bn by 2025. The state of Washington legalised cannabis way back in 2012 and saw its legal sales exceed $1.5bn in 2020. Now, it wants to take steps to ensure the cannabis industry is as diverse as possible.
What to watch: One effect of the new law could be that many more Black and brown-owned businesses can participate in the cannabis market, a factor that may cause sales to rise further. However, it is worth watching how municipalities control zoning density, bearing in mind a recent paper that shows concentrated densities of stores could lead to a drop in prices, keeping some stores and cultivators locked out of the market.
Give your take: It is promising to see the state of Washington taking steps to ensure that the cannabis industry it birthed is more inclusive for Black applicants and those in DIAs. The cannabis industry has long been criticised for its lack of diversity, so it will be fascinating to see if this onerous law can change that, as well as whether more cities and states adopt similar policies.
