Cannabis Social Equity Initiatives Among U.S. States With Legal Nonmedical Cannabis Retail: A Review and Recommendations.

Abstract

With expanding cannabis legalization, sometimes motivated by an interest in improving social justice, some states have enacted different initiatives to support social equity goals. This study described state social equity initiatives related to equitable industry entrepreneurship opportunities among disproportionately impacted communities and areas, community reinvestment, and criminal justice reform. Two coders independently identified these 3 state-level cannabis-related initiatives among the 22 states with legal and active nonmedical (recreational) cannabis retail as of December 2024 using NexisUni and state-specific legislative websites. Themes were synthesized using iterative content and thematic analysis. Social equity initiatives related to cannabis licensure were present in 17 of 22 states; of these, 13 reserved a number/percentage of licenses for social equity entrepreneurs. Regarding social equity licensure eligibility, all states required majority business ownership and had criteria considering cannabis-related arrests/convictions of applicants and/or family members (n=14 of 17), residence in disproportionately impacted communities and areas (n=15 of 17), and/or applicants' income/wealth (n=9 of 17). Most states with social equity entrepreneurship initiatives provided social equity entrepreneurs with technical assistance/training (n=14 of 17) and opportunities for reduced application/licensing fees (n=10 of 17). Most states imposed cannabis sales taxes (n=15 of 22) and/or excise taxes (n=20 of 22). Ten states (n=10 of 22) distributed cannabis program revenues to substance use education/prevention/treatment; approximately one fifth (n=4 of 22) distributed funds to social equity entrepreneurship initiatives. Over two thirds of states (n=15 of 22) had cannabis-related expungements. Most states had cannabis-related social equity initiatives (e.g., equitable entrepreneurship support, allocation of tax revenue, expungements), which varied in terms of their licensure, resources, and participation. Future research is needed to monitor and evaluate these social equity initiatives.