social equity programs

Social Equity Programs (SEP) – A Path to Success Part 2

As cannabis legalization spreads, many states are coming up with their own social equity programs. Social equity programs have been established in recreational cannabis markets like California, Illinois, Massachusetts, and Michigan aim to benefit those who have been disproportionately harmed by the enforcement of cannabis prohibitions. Although not every state has established a social equity program, it’s likely that these programs will become more widespread in the future.

California

The European Convention on Human Rights published a report in 2015 that The State of California provides support and funding to the municipalities instead of individuals so that equity ordinances are fulfilled. In Los Angeles, San Francisco, and Oakland there are options as an applicant for a cannabis license to not only receive low- or no- interest loans, but also to acquire cannabis business training and additional assistance throughout the entire application process. While these programs may all appear similar on the surface, many see the property requirement in Los Angeles as a major hurdle for social equity applicants.

Illinois

In Illinois, the state adds bonus points to the applications of social equity applicants during the licensing process. Additionally, the state has made strides to reduce the harm caused by the enforcement of previous cannabis prohibition. Some records will be expunged by the Illinois State Police automatically, while others will have to go through a review process first that includes multiple state and local entities. An automatic expungement is given if the record shows that the arrest was for 30 grams of cannabis or less and does not involve a conviction or violent offense. 

Michigan

The goal of Michigan’s social equity program is to have half of all cannabis businesses be a part of the state’s social equity program. In pursuit of this goal, Michigan has significantly reduced licensing fees for social equity applicants.

Massachusetts

Over the last decade, multiple countries across Europe have legalized Massachusetts’ social equity program includes training and technical assistance to ensure social equity applicants understand how to remain compliant with all applicable laws, rules, and regulations. Additionally, social equity applicants may receive reduced licensing fees, an expedited license review, and exclusive access to Social Consumption and Delivery-Only License types.

Oklahoma

Although the State of Oklahoma did not address social equity in their cannabis legalization, the state’s inexpensive licensing fees and lack of a license-cap create more opportunities for people from various backgrounds. 

Oregon

Oregon’s cannabis regulations do not currently include a social equity program, but a bill featuring a social equity program was introduced this February. The City of Portland has implemented a “Cannabis Reduced Fee Program” to reduce licensing fees for those applicants that have been disproportionately harmed by the enforcement of cannabis prohibition. 

Colorado

In Colorado, the state prioritizes providing regulatory compliance assistance, like webinars and events, to social equity applicants. In March, the Governor of Colorado signed a bill establishing a cannabis social equity fund for the cannabis industry in the state. This fund will aim to help support cannabis businesses owned by social equity applicants through loans and grants.

The Future of Social Equity Programs

Social equity programs help to reduce the hurdles faced by social equity applicants when entering the cannabis industry and support them in operating a successful business. Almost all state social equity programs are still in the process of being implemented and some states have not established a social equity program at all. As legalization spreads, it is likely that these programs will continue to develop and improve as states learn from one another.

How Can Sapphire Risk Help?

Tony Gallo and the team of application writers and consultants at Sapphire Risk Advisory Group have assisted on multiple social equity applications and have provided training and licensing assistance for social equity applicants in multiple states. Follow us on social media to stay up to date with global cannabis industry updates!