FAS’ Cannabis Regulatory Program came about in 2015, three years after cannabis legalization in Washington State. The City realized it needed someone to manage the implementation and integration of this new industry and Cherie MacLeod stepped into the role in 2014. Cherie maintained industry data before and after the passage of I-502 when it was legalized. The data was used to develop the City’s current program.
Cherie helped to shepherd the City’s first license and business regulations for the industry in 2015. It was in 2017 at Denver’s annual symposium for cannabis regulators that she first learned about the disparity in cannabis business ownership, as well as the historic inequities.
She brought these findings back to Seattle and the Racial Equity Toolkit Project on Cannabis Licensing began in 2018. The current project team includes FAS members as well as SDCI and OED. The project team learned about the negative impacts to the communities affected by the 1990’s War on Drugs, specifically on Seattle’s Central District.
The team analyzed cannabis violations filed with the Seattle Municipal Court and determined that certain communities in the city were disproportionately cited, the same neighborhoods targeted by the federally funded Weed and Seed program as part of the War on Drugs.
“It probably played a role in the gentrification of Seattle,” Cherie said. “We’ve learned that it’s not just about licenses.”
In 2020 the State Legislature passed House Bill 2870 to address the harm to the community from cannabis enforcement and to create an equity program for cannabis licensing to benefit the most harmed. Cherie serves on the state task force and co-leads a work group on disproportionately impacted communities.
The project team’s work has expanded the proposed outcome to not only promote diversity in this industry, but also community wealth building opportunities through small business technical support, start up and supportive grants for both cannabis and ancillary businesses.
She’s also working to find ways to channel some of the revenue Seattle receives from the state apportionment of cannabis retail sales tax – about $1.4 million per year.
“What can we do to lower the barriers for BIPOC people who want to get into the cannabis industry?,” she said.
Cherie points out that the City cannabis business license fee has increased twice and is now $3,500 per year. The high cost to enter the industry is a known barrier. This industry does not have traditional banking access due to Federal prohibition. Interested parties must rely on generational wealth and connections with in-state financiers. She is also working with SDCI to develop an accessible map to help potential entrepreneurs find a compliant business location.
And Cherie is looking for partners in this program to support new businesses through training and mentoring.
Even with legalization, Black people are still four times more likely to be cited for cannabis offenses.
“The more I learn about this and with everything that has happened in the past year, with the injustices against an entire population of our country, and learning about institutional racism, I see it now,” she said. “It’s almost like putting on another pair of glasses so you can look behind and see where you’ve been more clearly.”