Discounts to increase equity in the pot industry – Orange County Register

When Californians voted to legalize recreational marijuana in 2016, advocates made a compelling promise. Proposition 64 would promote “social justice” by clearing the marijuana records of tens of thousands of people and by helping local and mostly minority entrepreneurs get a “fair” license to operate. cannabis business. So far, the state has failed on both.

An investigation by the Los Angeles Times last month found that “at least 34,000 cannabis applications remain incompletely processed by the courts” – a situation that “could have dire consequences for those seeking employment, professional licensing, (and) home loans”. These convictions have had the most devastating impact on those with lower incomes.

The newspaper also revealed that new state regulations have repeatedly frustrated applicants for black, Latino and other minority cannabis licenses, despite the ensuing legislation (Senate Bill). 1294) that legislators designed to initiate a social equality program. The report added that applicants were “hit from one bureaucratic hurdle after another”.

This editorial board supported Proposition 64 and continues to advocate for the legalization of marijuana on issues of social justice and freedom. Both concerns – the slow rate of clearance for past convictions and the obstacles that beginner entrepreneurs face in getting a license – stem from an overly bureaucratic approach. of California for everything.

Courts need to step up their game and prioritize these gaps, but we are careful not to put too much stake in social justice programs. Despite their fervent desire to help those marginally harmed by the drug war find a foothold in the legal market, they focus too much on subsidies and bureaucratic ideas.

Furthermore, high state taxes and Byzantine regulations “have caused most operators in the industry to close shop, flee the state, or sell on the state’s illegal market,” according to Politico. One of the best arguments for legalization is that it will replace the black market. But let California impose so many barriers on legal operators that many growers prefer the risk from illegal trades and DEA dealers.

The best way to promote equity is to create a reasonable tax and regulatory structure so that anyone can engage in business.