States with Cannabis Diversity and Social Equity Programs

States with Cannabis Diversity and Social Equity Programs

Admin
SEPTEMBER 24TH, 2020

In the past two years, states within the United States have been writing diversity and social equity programs within their marijuana legislation, to ensure for the following:

  • Social justice for those who have been harmed by cannabis criminalization
  • Providing the ability for low-income individuals to be able to obtain a marijuana business license
  • An advantage for minority inclusion within the ownership of cannabis businesses

Outlined below are states with current and/or upcoming business opportunities that have implemented diversity and/or social equity programs into their marijuana program. Additionally, we have included a list of states that have successfully carried out similar programs.

States with Current and/or Upcoming Business Opportunities

Arizona

The state of Arizona legalized medical cannabis in 2010, through a Ballot, Proposition 203, which provided a legal way for qualifying patients in the state to access and utilize medical cannabis as a form of treatment for their ailment.

Prop 207, also known as the Smart and Safe Act initiative, will include a social equity program if passed on the November 2020 ballot. The state plans to allocate 26 additional social equity licenses, through a program that will be developed by the state health department.

Georgia

The state of Georgia legalized low-THC, high-CBD medical cannabis in 2015, through a Legislative bill, House Bill 1, but failed to provide a dispensing system for access. In 2019, Georgia passed House Bill 324, which provided a legal way for qualifying patients in the state to access and utilize low-THC, high-CBD medical cannabis as a form of treatment for their ailment.

Illinois

The state of Illinois legalized both adult-use and medical cannabis. Illinois legalized medical cannabis in 2013, through a legislative bill, House Bill 1, which provided a legal way for qualifying patients in the state to access and utilize medical cannabis as a form of treatment for their ailment. In 2019, Illinois legalized medical cannabis through a legislative bill, House Bill 1438, which provided a legal system and access to cannabis for persons 21 years and older.

Illinois has a social equity program that intends to discharge the start-up costs associated with entering the industry. Applicants with diversity in ownership will receive additional points to their overall license application score, as well as, a reduced license and application fee.

Michigan

Michigan legalized medical cannabis in 2008, through a ballot, Proposal 1, which provided a legal way for qualifying patients in the state to access and utilize medical cannabis as a form of treatment for their ailment. In 2018, Michigan legalized medical cannabis through a ballot, Initiated Law 1 of 2018, which provided a legal system and access to cannabis for persons 21 years and older.

Michigan has a Social Equity Program that is available as a provision under the Michigan Regulation and Taxation Marihuana Act (MRTMA). This helps promote and encourage participation in the industry by people from communities that have been disproportionately impacted by marijuana prohibition and enforcement in hopes to positively impact those communities.

New Jersey

The state of New Jersey legalized medical cannabis in 2010, through a Legislative bill, Senate Bill 119, which provided a legal way for qualifying patients in the state to access and utilize medical cannabis as a form of treatment for their ailment. New Jersey’s legislature included automatic record expungement for low-level marijuana crimes in their pending measures. Also, the language is designed to give a licensing advantage to marijuana businesses owned by veterans, women, and people of color.

New Jersey Public Question 1, the Marijuana Legalization Amendment, will be on the November 2020 ballot. If passed, there may be an opportunity to apply for licenses.

States That Implemented a Diversity & Social Equity Program

Ohio

The state of Ohio legalized medical cannabis in 2016, through a Legislative bill, House Bill 523, which provided a legal way for qualifying patients in the state to access and utilize medical cannabis as a form of treatment for their ailment. House Bill 523 required the Department of Commerce and the Board of Pharmacy to issue more than 15 percent of medical marijuana cultivators, processors, laboratory, and retail licenses to economically disadvantaged groups. These groups include Blacks or African Americans, American Indians, Hispanics or Latinos, and Asians.

Ohio awarded 56 dispensary licenses and 12 growers/processors in 2018.

Pennsylvania

The state of Pennsylvania legalized medical cannabis in 2016, through a Legislative bill, Senate Bill 3, which provided a legal way for qualifying patients in the state to access and utilize medical cannabis as a form of treatment for their ailment. Pennsylvania’s Department of Health required policies to ensure equal opportunity for diverse groups in permitting, and that promote equitable access to the workforce for diverse individuals.

Pennsylvania awarded 50 dispensary licenses and 24 growers/processors in 2017, and again in 2018.

Maryland

The state of Maryland legalized medical cannabis in 2014, through Legislative bills, Senate Bill 923 and House Bill 881, which provided a legal way for qualifying patients in the state to access and utilize medical cannabis as a form of treatment for their ailment. Maryland has a Diversity Plan that will consider any type of diverse group where an Applicant can demonstrate that an individual has been disadvantaged. These individuals are not limited to diverse racial, ethnic, and cultural backgrounds and communities, small businesses, women, veterans, individuals with disabilities.

Maryland awarded preliminary licenses for 102 dispensaries and 30 growers/processors in 2016. However, Maryland had to reopen the application process since the diversity inclusion goals were not met.

Missouri

The state of Missouri legalized medical cannabis in 2018, through a Ballot measure, Amendment 2, which provided a legal way for qualifying patients in the state to access and utilize medical cannabis as a form of treatment for their ailment. With a large population of a diverse group in the state, the department ensures the participation of the diverse group in the industry by awarding extra points to applicants with diversity inclusion to their overall application score. It was the state’s goal to bring wealth and jobs to communities where people were disproportionately impacted for marijuana-related offenses.

Missouri awarded 192 medical marijuana dispensary licenses and 86 manufacturing licenses in 2020.

Ask us a question!

Are you a diverse group looking to enter into the cannabis industry? Our team has successfully secured multiple licenses for women-owned, veteran-owned, and minority-owned groups in at least ten states. Schedule a consult with our CEO, Sara Gullickson, to learn more.

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