New Seattle laws aim to help people of color break into the state's legal cannabis industry. - Axios SeattleLog InLog InAxios Seattle is an Axios company.

Why Seattle' s cannabis equity plans have limited reach

Illustration: Lindsey Bailey/Axios Newly passed laws in Seattle aim to help people of color break into the state's legal cannabis industry. But the legislation can only do so much without the creation of more pot business licenses at the state level. Why it matters: City and state officials say communities of color — especially Black populations — have faced major barriers entering the state's legal weed industry.That's unacceptable after those communities were disproportionately harmed by decades of the war on drugs, including the criminalization of marijuana, Seattle Mayor Bruce Harrell said last week. The latest: Harrell signed three ordinances Sept. 19 aimed at improving equity in the cannabis industry.One will for cannabis businesses whose owners were significantly impacted by drug criminalization.Pot business owners can qualify if they have lived in areas with a high rate of drug arrests, or if they or a family member were convicted of a past drug offense — and not necessarily just for cannabis.Businesses would have to be at least 51% owned by people who meet those criteria. Yes, but: City officials are constrained by the limited number of cannabis business licenses made available by the Legislature and the Liquor and Cannabis Board (LCB). Right now, the number of retail shop licenses is capped at 556 statewide, while the window to apply for growing and processing licenses closed nearly a decade ago.That means very few business owners will be able to take advantage of the city's new social equity policies, at least for now. Flashback: Earlier this year, the Legislature rejected to increase the throughout the state. With the current cap, Seattle officials estimate that cannabis retail licenses will be available for social equity applicants within the city.Even those licenses won't be awarded until the state finalizes rules for its separate, statewide cannabis equity initiative — a process that is ongoing. What they're saying: Jim Buchanan, president of the Washington State African American Cannabis Association, called the city legislation "smoke and mirrors" that doesn’t do much to address racial equity issues in the industry.For greater impact, Seattle officials should dedicate all of the city's cannabis tax revenue toward community reinvestment programs, he told Axios. The other side: Council member Teresa Mosqueda told Axios that the city's new laws are just a starting point. will commission a "cannabis needs assessment" to identify ways of improving the industry in the future, she noted. adds job protections for cannabis industry workers. That should help employees — many of whom are people of color — in the nearer term, Mosqueda said.The city also plans to lobby the Legislature next year to increase the number of cannabis business licenses, to create more opportunities for people, she added. Of note: Only 1% of pot producing and processing businesses in Washington state are majority-owned by Black people, while about 4% of marijuana retail shops are majority Black-owned, according to data from the Liquor and Cannabis Board. Get more local stories in your inbox with .Subscribe Support local journalism by becoming a member.

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