It is important to get the information in the Industry Report because this can tell us what we should be doing better.
The Massachusetts Cannabis Control Commission released a new report that shows the lack of diversity at senior levels of the cannabis industry, despite the mandate of Massachusetts to include communities who have been disproportionately affected by the drug war.
Julie Johnson, the head of the research department at the commission, presented the report to the Commission on the 25th February. The law required the report be submitted by December 2023, but it was delivered a year later. The report showed that white people occupy 77% of the senior positions. Hispanics hold 4%, Blacks hold 5%, and Asians hold 5%.
Although these numbers are up from the last report in 2020 where 84 per cent of senior management were white and only four percent Black or African American, 3percent Hispanics, the figures still trail behind current demographic trends. As of the 2023 census, Massachusetts has a population that is 69.6% white, 9.5% Black or African American, and 7.7% Asian. One third of all the residents of Massachusetts identify as Hispanics or Latinos. The term senior leadership refers to positions such as board members, managers, executives, and directors.
Ryan Dominguez is the director of the Massachusetts Cannabis Coalition. He said that if our stated objective was to make sure the people who were affected got first access to the industry, yes, we should do more. “There’s always room for improvements, especially when those numbers are what we’re observing, since there is so much interest from people to have access to the cannabis sector.”
The state promised to assist those hurt by the War on Drugs in profiting from the legal cannabis market when it passed the ballot question that legalized recreational marijuana.
People with previous criminal convictions face an disproportionately high barrier to employment in the cannabis sector, particularly at senior levels. People with disadvantaged backgrounds have less social protection and access to capital.
The cannabis industry report also shows that general employees who have more entry-level positions map closer to the census data with 68 percent white, seven percent Black, 10 percent Hispanic and one percent Asian.
Dennis Benzan owns the cannabis retail company Western Front which has two locations in Cambridge, and another in Chelsea. “We had a chance to make this work because cannabis is a relatively new industry in Massachusetts.”
Benzan has an “economic empowerment” certification—a category of license that is reserved for applicants who come from and who promise to employ people from communities disproportionately impacted by the war on drugs.
Social Equity Programs (SEP) in the state and Economic Empowerment Programs (EEP) are designed to help entrepreneurs of diverse backgrounds by providing technical assistance, education and prioritizing licensing. A special category is available for women-owned, minorities-owned, and veteran-owned business.
The certifications are often accompanied by accelerated timelines, and other advantages such as reduced licensing fees. Benzan, and other social-equity cannabis operators, have been struggling to remain afloat because they lack access to capital.
Benzan’s classification as “economic empowerment” business means that he has to meet a set of criteria—one of which requires him to hire people from marginalized backgrounds, particularly those who live in disproportionately impacted communities and those who have criminal charges related to marijuana. This is not a requirement for the entire industry.
“We are being asked to remedy past criminalization of drug use in our neighborhoods and communities. This is especially true for disproportionately impacted areas. Yet, the industry as a whole does not have this requirement or mandate,” stated Benzan.
In order to be licensed, the commission requires all cannabis businesses to present a diversity plan, in which they explain how they intend on promoting equity, diversity, and inclusion among people of colour, women, veterans and LGBTQ+ people. No enforcement mechanisms exist. License renewal is not affected by failure to reach diversity goals.
The commission has been reluctant to penalize people who are seeking renewals because they have not completed the requirements. [goals in their] Kevin Gilnack is the president of Equitable Opportunities Now, a cannabis advocacy group. The data are not yet available. [on the diversity plans] We need to give some teeth to the cornerstone that should underpin Commonwealth efforts to encourage equal participation.”
The acting chair, Commissioner Bruce Stebbins said he was thinking of ways to improve the diversity plans, and laying out guidelines for what cannabis companies can do to encourage diversity.
Stebbins, who spoke to CommonWealth Beacon on Thursday, said that “from day one this commission has been focused on engaging people in communities or neighborhoods where they are disproportionately affected.” The industry report can help us to see that we have to improve, and to work with licensees.
The article originally appeared in CommonWealth Beacon, and it is now republished under Creative Commons.
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Side Pocket Images. Image courtesy Chris Wallis.
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