Cannabis Social Equity Opportunities by State and MSA

Colorado

Timeline:  Rolling

Licenses available: Accelerator-Endorsed License (host); Accelerator Store, Accelerator Manufacturer, and Accelerator Cultivator (Social Equity Participants)

Ownership: Social equity accelerator applicants must hold at least 51% ownership in the business to be eligible for participation.

Qualifications:

“Social Equity Accelerator Licensee Applicants must be a Colorado resident and have not previously owned an MJ Business that was subject to revocation as well as meet one of the following criteria: 

 

    1. Resided in an opportunity zone or Disproportionate Impacted Area for at least 15 years between 1980 and 2010; OR
    2. The applicant or immediate family was arrested, convicted or suffered civil asset forfeiture due to a marijuana offense; OR
    3. The applicant’s household income did not exceed 50% of the state median income as measured by the number of people who reside in the applicant’s household.

 

Accelerator-Endorsed Licensee applicants must not have been subject to a license revocation or active suspension issued by the State Licensing Authority or Local Jurisdiction in which it operated and has not previously owned an MJ business that was subject to revocation. They must also provide information demonstrating the applicant operated its license for at least 2 years prior to the date of the application; OR satisfy at least one of the following:

 

    1. The Applicant possesses a valid commercial marijuana license issued in another state and has operated such license for the preceding two years.
    2. For the preceding two years the Applicant has participated in an accelerator, incubator or social equity program that may, but is not required to be, associated with the commercial marijuana industry.
    3. The Applicant has at least two years of regulated cannabis industry experience at the managerial or executive level. 
    4. The Applicant has at least two years of business experience in a highly regulated industry other than the marijuana industry.”

 

Incentive/Benefits:

“Social Equity Licensees participating in the accelerator program receive technical compliance and/or capital assistance pursuant to an equity partnership agreement between the Accelerator-Endorsed Licensee and the Accelerator Licensee. Examples of the types of assistance an Accelerator-Endorsed Licensee can provide a Accelerator Licensee, including, but are not limited to:

  • Accounting
  • Business services (e.g. sales and marketing)
  • Financial or capital support
  • Information technology support
  • Regulatory compliance support

Accelerator-Endorsed Licensee benefits for participating in the program include:

  • Social Equity Leader Designation to indicate its leadership status.
  • MED may consider a social equity leader designation as a mitigating factor when determining the initiation of administrative action or assessment of penalties for violations of the statutes or regulations.
  • Compliance Assistance and Education Engagement with MED.
  • Possible Application and License Fee Exemptions for a change of owner, change of location, or modification of premises, where such changes or modifications are directly related to its participation in the accelerator program.”

 

Expungement Opportunities:

In 2020, Governor Polis signed HB 20-1424 and then signed an executive order issuing an automatic pardon on convictions for possession of less than 1 oz of marijuana. On May 20, 2021, the Governor signed HB 21-1090 and directed members of the CO Bureau of Investigation to review the list of convictions of possession of 2 ounces or less to identify individuals who may be eligible for a pardon. If you believe you may be eligible, complete the form on this website: https://cbi.colorado.gov/sections/biometric-identification-and-records-unit/marijuana-pardons.

 

Accelerator/Incubator Program:

The Accelerator Program allows individuals who may have faced barriers to entry in Colorado’s retail (adult-use) regulated marijuana industry to own and operate a marijuana business license as part of an agreed-upon partnership with an existing marijuana business that has been endorsed by the MED as an “Accelerator-Endorsed Licensee.” An Accelerator-Endorsed Licensee serves as the “host” in the accelerator program by providing capital and/or technical support to a Social Equity Licensee and allowing the Social Equity Licensee to operate as an Accelerator Store, Accelerator Manufacturer and Accelerator Cultivator on the same Licensed Premises or on a separate Licensed Premises provided by the Accelerator-Endorsed Licensee. Applications to participate in the accelerator program became available beginning January 1, 2021.

Denver, Colorado

Timeline:  June/July 2021 – July 1, 2027 (Only social equity applicants can apply for licenses)

 

Licenses available: Medical or Recreational Dispensary, Manufacturer, Transporter/delivery, cultivation, processor, hospitality

 

Ownership: A social equity applicant, alone or together with other Social Equity Applicants, must own at least 51% of the license.

 

Qualifications:

“Applicant must be a Colorado resident and have not previously owned an MJ Business that was subject to revocation as well as meet one of the following criteria: 

  1. Resided in an opportunity zone or Disproportionate Impacted Area for at least 15 years between 1980 and 2010; OR
  2. The applicant or immediate family was arrested, convicted or suffered civil asset forfeiture due to a marijuana offense; OR
  3. The applicant’s household income did not exceed 50% of the state median income as measured by the number of people who reside in the applicant’s household.”

 

Incentive/Benefits: Waived application fees and reduced licensing fees

 

Expungement Opportunities:

 Turn over a new leaf program – free program to clear and seal low level MMJ convictions. https://www.denvergov.org/Government/Departments/Marijuana-Information-Office/Turn-Over-A-New-Leaf-Program

 

Accelerator/Incubator Program:

The Accelerator Program allows individuals who may have faced barriers to entry in Colorado’s retail (adult-use) regulated marijuana industry to own and operate a marijuana business license as part of an agreed-upon partnership with an existing marijuana business that has been endorsed by the MED as an “Accelerator-Endorsed Licensee.” An Accelerator-Endorsed Licensee serves as the “host” in the accelerator program by providing capital and/or technical support to a Social Equity Licensee and allowing the Social Equity Licensee to operate as an Accelerator Store, Accelerator Manufacturer and Accelerator Cultivator on the same Licensed Premises or on a separate Licensed Premises provided by the Accelerator-Endorsed Licensee. Applications to participate in the accelerator program became available beginning January 1, 2021.

Massachusetts

Timeline:  Deadline to apply for the SEP third cohort is Friday, Sept 17, 2021

Licenses available: Social Consumption and Delivery licenses only available to SEP participants for a minimum of up to 3 years). Other license types are available on a rolling basis: retailer, cultivator, product manufacturer, microbusiness, testing lab, transporter, craft  cooperative

Ownership: There are exclusive license opportunities and fee waivers for SEP participants with majority ownership in the company

Qualifications:

“The Social Equity Program (SEP) is a free, statewide technical assistance and training program that provides participants with education, skill-based training, and tools for success in the industry. The SEP is not a license type. Upon completion of this program, participants will have acquired tools and training to apply for and obtain a license through the Cannabis Control Commission (Commission). However, completion of the program does not guarantee licensure. Applicants are eligible for the SEP if they demonstrate they meet at least one of the following criteria:

  1. Income that does not exceed 400% of Area Median Income and Residency in an Area of Disproportionate Impact, as defined by the Commission, for at least five of the past ten years.
  2. Residency in Massachusetts for at least the past 12 months and a conviction or continuance without a finding for an offense under M.G.L. c. 94C or an equivalent conviction in Other Jurisdictions.
  3. Residency in Massachusetts for at least the past 12 months and proof that the SEP applicant was either married to or the child of an individual convicted or continuance without a finding for a M.G.L. c. 94C offense or an equivalent conviction in Other Jurisdictions.
  4. Any individual listed as an owner on the original certification of an Economic Empowerment Priority Applicant who satisfies one or more the following criteria:

 

  • Lived for five of the preceding ten years in an Area of Disproportionate Impact, as determined by the Commission.
  • Experience in one or more previous positions where the primary population served were disproportionately impacted, or where primary responsibilities included economic education, resource provision or empowerment to disproportionately impacted individuals or communities;
  • Black, African American, Hispanic or Latino descent.
  • Other significant articulable demonstration of past experience in or business practices that promote economic empowerment in Areas of Disproportionate Impact.”

 

Incentive/Benefits:

SEP benefits include:

  • Free technical assistance and training through vendors certified by the Commission.
  • Expedited license application review for individuals who maintain 10% ownership in the business.
  • For those who maintain majority ownership in the business, the following fee waivers and exclusive license types are also available:
  • Waived application fees (this waiver does not include the costs associated with background checks).
  • Waived seed-to-sale Metrc monthly program fees (this waiver does not include other costs associated with the Seed-to-sale tracking system, specifically the fees for plant and package tags).
  • Exclusive access to Social Consumption and Delivery-Only License types for up to a minimum of three years, as well as a pre-certification application that offers applicants a preliminary application process that certifies their propensity to run a business of one of these two license types.
  • A 50% reduction of annual license fees, regardless of license type.

 

Expungement Opportunities:

The Massachusetts sealing law lets you immediately seal offenses that are no longer crimes. If you have a past criminal case for possession AND the case involved only 2 ounces or less of cannabis (marijuana), you can seal the case without a waiting period expiration. The law only decriminalized charges for “possession” and not “possession with the intent to distribute” or other drug crimes. 

The sealing process is free and quick. To seal 

the records, fill out a PETITION TO SEAL form and mail or deliver your PETITION to the Commissioner of Probation, One Ashburton Place, Rm 405, Boston MA 02108. You will get a reply by mail from the Commissioner within a few weeks telling you if your request was approved. If the petition is denied, seek legal advice about your rights.

Michigan

Timeline:  Rolling at state level but limited in certain localities

Licenses available: All license types: grower, processor, dispensary, transporter, testing facility, macrobusines.

Ownership: At least 51% of the business entity must be owned by individuals that meet the social equity criteria

Qualifications: To qualify for the MRA’s social equity program, individuals must meet one of the following criteria:

1) Residency in a disproportionately impacted community for at least 5 cumulative years within the past 10 years 

  • 25% license fee reduction

2) Conviction of a marijuana related offense

  • Misdemeanor conviction – 25% license fee reduction
  • Felony conviction – 40% license fee reduction

3) Registration as a primary caregiver under the MMMA for at least 2 years between 2008 and 2017

  • 10% license fee reduction

Establishments must meet of of the following criteria:

1)  Have plans to operate a marijuana establishment within a disproportionatly impacted community 

  • reduction on all adult-use license fees

2) Have plans to operate a marijuana establishment outside of a disproportionately impacted community

  • fee reduction for only 2 years following adult-use licensure

 

Incentive/Benefits:

  • License fee reduction dependent on qualifying criteria – see qualifications for specifics

Expungement Opportunities:

A person convicted of 1 or more misdemeanor or local ordinance marijuana crimes may petition the convicting court to set aside the convictions if they were based on activity that would not have been a crime after December 6, 2018, when a 2018 voter-passed initiative to legalize recreational use of marijuana in Michigan went into effect.

New Jersey

Timeline:  Fall 2021

Licenses available: cultivation, manufacturer, wholesaler, distributor, retailer, delivery, micro business

Ownership: TBD

Qualifications:

The goal is to issue at least 30% of all new licenses to minority, women or veteran owned businesses. There are not specific qualifications yet, but in ranking applications, the Commission must give priority to the following:

 

1) Applicants that include a “significantly involved person or persons” lawfully residing in New Jersey for at least five years as of the date of the application.

2) Applicants that are party to a collective bargaining agreement with a bona fide labor organization that currently represents or is actively seeking to represent cannabis workers in New Jersey or another state.

3) Applicants that submit a signed project labor agreement with a bona fide building trades labor organization, which is a form of pre-hire collective bargaining agreement covering terms and conditions of a specific project, including labor issues and worker grievances associated with that project, for the construction or retrofit of the facilities associated with the licensed entity.

4) Applicants that submit a signed project labor agreement with a bona fide labor organization for any other applicable project associated with the licensed entity.

5) An applicant that has entered into an agreement with an institution of higher education to create an integrated curriculum involving the cultivation, manufacturing, wholesaling, distributing, retail sales, or delivery of personal use cannabis or cannabis items, provided that the curriculum is approved by both the commission and the Office of the Secretary of Higher Education and the applicant agrees to maintain the integrated curriculum in perpetuity.

 

Incentive/Benefits:

  • Priority licensing for social equity applicants

 

Expungement Opportunities:

Most minor marijuana-related offenses (like possession of less than one ounce of cannabis) can be expunged immediately, though that wait time can increase to three years for more serious offenses such as distribution of more than one ounce of marijuana. To expunge records, you must use new Jersey’s electronic filing system – eCourts Expungement System.

New York

Timeline:  Early 2022

Licenses available:

50% of all license types: cultivator,Registered organization adult-Use Cultivator Processor Distributor Retail Dispensary, Registered Organization Adult-Use Cultivator Processor Distributor, Processor, Cooperative, Distributor, Retail Dispensary, microbusiness, Delivery, Nursery, On-site Consumption

Ownership: TBD

Qualifications:

The goal is to issue at least 30% of all new licenses to minority, women or veteran owned businesses. There are not specific qualifications yet, but in ranking applications, the Commission must give priority to the following:

1) Applicants that include a “significantly involved person or persons” lawfully residing in New Jersey for at least five years as of the date of the application.

2) Applicants that are party to a collective bargaining agreement with a bona fide labor organization that currently represents or is actively seeking to represent cannabis workers in New Jersey or another state.

3) Applicants that submit a signed project labor agreement with a bona fide building trades labor organization, which is a form of pre-hire collective bargaining agreement covering terms and conditions of a specific project, including labor issues and worker grievances associated with that project, for the construction or retrofit of the facilities associated with the licensed entity.

4) Applicants that submit a signed project labor agreement with a bona fide labor organization for any other applicable project associated with the licensed entity.

5) An applicant that has entered into an agreement with an institution of higher education to create an integrated curriculum involving the cultivation, manufacturing, wholesaling, distributing, retail sales, or delivery of personal use cannabis or cannabis items, provided that the curriculum is approved by both the commission and the Office of the Secretary of Higher Education and the applicant agrees to maintain the integrated curriculum in perpetuity.

 

Incentive/Benefits:

  • Priority licensing for social equity applicants

 

Expungement Opportunities:

Anyone convicted of possessing less than one pound of marijuana, or selling less than 25 grams (0.88 ounces) of marijuana, will automatically have their records expunged. This in addition to the 2019 expungement of records for anyone charged with possessing less than 3 ounces.

Portland, Oregon

Timeline:  Rolling

Licenses available: All license types: Retailer, Retail Courier, Wholesaler, Producer, Processor

Ownership:

Social equity criteria (total income and total number of licenses) applies to all individuals and entities with 10% or greater ownership interest, including any parent companies, associate companies, subsidiaries, or affiliates of business entity owners.

Qualifications:

Qualifying businesses will receive social equity benefits based on their number of up to three (3) qualifying factors.

 

1) Small Business – BOTH of the following must be true for this Qualifying Factor:

  • Less than $750,000 annual total income in the preceding calendar year
  • The business entity and its owners have no more than a total of two other state recreational or medical cannabis licenses pending or obtained.

2) Small Business with MWESB-Certified Ancillary Industry Vendors – BOTH of the following must be true for this Qualifying Factor:

  • Meets the Small Business qualifications above
  • Contracts with an ancillary industry vendor(s) MWESB-certified by the State of Oregon and listed on the State’s Certified Vendor Directory as an Emerging Small Business, Minority Business Enterprise, Service-Disabled Veteran Business Enterprise, or Women Business Enterprise.

3)  Owners or Staff with Prior Cannabis Conviction(s) – The following must be true for this Qualifying Factor:

  • 25% or greater of ownership or 20% or greater of staff hours are represented by individuals with a federal or state conviction for a criminal offense committed prior to July 1, 2015 in which possession, delivery or manufacture of marijuana or marijuana items is an element, whether misdemeanor or felony.

 

Incentive/BenefitsL:

  • License fee reduction and early assistance reimbursements. 
  • 1 qualifying factor – 15% off license fee and up to $750 early assistance reimbursement. 
  • 2-3 qualifying factors – 25% off license fee and up to $1,500 early assistance reimbursement.

Expungement Opportunities:

Oregon allows persons previously found guilty of low-level (up to one ounce) marijuana possession offenses to file a motion with the court to have their convictions set aside. Petitioners may not be charged a fee for submitting such a request, and any objections to the request must be filed within 30 days.

Virginia

Timeline:  2023

 

Licenses available:

All license types: Retail stores, wholesalers, manufacturing facilities, and cultivation facilities

Ownership: At least 66% of the business entity must be owned by individuals that meet the social equity criteria

Qualifications: Currently, to qualify for social equity status, an applicant must have lived or been domiciled for at least 12 months in the Commonwealth and is either: 

1) a person or persons who have been convicted of or adjudicated delinquent for any misdemeanor violation of certain marijuana specific laws; 

2) a person or persons who is the parent, child, sibling, or spouse of a person who has been convicted of or adjudicated delinquent for any misdemeanor violation of those laws relating marijuana; 

3) a person or persons who have resided for at least three of the past five years in a jurisdiction that is determined to have been disproportionately policed for marijuana crimes; 

4) a person or persons who have resided for at least three of the last five years in a jurisdiction determined to be economically distressed; or 

5) a person or persons who graduated from a historically black college or university located in the Commonwealth. 

Incentive/Benefits:

The Cannabis Equity Reinvestment Board will establish standards for any preferences in the licensing process for social equity applications, what percentage of application or license fees are waived for social equity applicants, and a low-interest business loan program for social equity applicants.

Expungement Opportunities:

Misdemeanor convictions of marijuana possession, including intent to distribute, will be automatically expunged by July 1, 2026. Individuals with a felony possession with intent to distribute will be able to petition the court to expunge the charges.

District of Columbia

Timeline:  Dependent on Congressional approval. If approved by the end of 2021, adult use sales could be expected to start by Oct 1, 2022

Licenses available:

Third party social equity delivery license – this is only for social equity applicants who would have exclusive rights to conduct deliveries for on-premises retailers and microbusiness for the first two (2) years. Individuals with prior cannabis convictions would get preference points when applying for other license types (cultivation, manufacturer, microbusiness, distributor, off-premises retailer, testing labs)

Ownership: At least 60% of the business entity must be owned by individuals that meet the social equity criteria

Qualifications:

A third party social equity delivery license will be limited on an exclusive basis to businesses controlled by and with a majority ownership comprised of persons whose income at the time of application does not exceed 200% of the area median income level and meets at least 2 of the following 4 criteria:

 

1) The applicant is a cannabis certified business enterprise.

2) One or more of the owners of the applicant owning at least 60% of the business is a District resident who is a returning citizen as defined in section 2 of the Office of Ex Offender Affairs and Commission on Re-Entry and Ex-offender Affairs Establishment Act of 2006.

3) one or more of the owners of the applicant owning at least 60% of the business had been a District residents for the last 2 years and is married to or in a civil union, or the child of a person or has non-parent legal guardian who is incarcerated in the District or any other jurisdiction. 

Has been a resident of Ward 7 or Ward 8 for at least the last 5 years. “

Incentive/Benefits:

Social equity delivery licensees would have exclusive rights to run marijuana delivery businesses for the first two years of the program AND there will be preference points for individuals with former cannabis convictions when scoring all other license types.

Expungement Opportunities:

If passed, within one year of the effective date of the act, the Superior Court will automatically expunge all arrests, charges, and convictions in Superior Court proceedings and all other police and court records where the lead, main, or top charge involves the possession of marijuana or possession with the intent to distribute marijuana only unless (i) the distribution or sale of cannabis was to a minor; (ii) the arrest, charges, or conviction included a gun offense; or (iii), the amounts involved more than 1,000 cannabis plants or more than 1,000 pounds of dry cannabis or its equivalent in liquid or other form.

Join the NHCC Community

JOIN