Social Equity Plans for Cannabis Business In Michigan

Social Equity Plans

Pursuant to Rule 4 (16) of the Marijuana Licenses Rule Set (R 420.4(16)), an applicant seeking licensure under the Michigan Regulation and Taxation of Marijuana Act (MRTMA) shall provide a social equity plan detailing a plan to promote and encourage participation in the marijuana industry by people from communities that have been disproportionately impacted by marijuana prohibition and enforcement and to positively impact those communities.

This bulletin is issued to provide applicants with guidance on what they should consider when developing and implementing the social equity plan that is required with the adult use application and designed to meet the intent of this rule. The information in this bulletin is provided for guidance and should not be construed as requirements for applicants’ social equity plans.

Things to Consider When Developing Your Social Equity Plan

Determine if the municipality where you plan to operate has enacted any requirements related to social equity. If the municipality has, make sure those requirements are addressed in your social equity plan.

Review your business’s strategic goals and objectives and determine how the social equity plan you are developing will help accomplish or complement those goals and objectives.

Determine the Focus of Your Social Equity Plan

Identify the primary component(s) of your social equity plan. The following are examples of what licensees in Michigan and other states have included in their social equity plans:

Employing individuals from disproportionately impacted communities at their marijuana establishment(s). A list of the communities the Marijuana Regulatory Agency (MRA) has identified as disproportionately impacted is listed here.

Employing disproportionately impacted individuals who have qualified for the MRA’s social equity program (caregivers or individuals with marijuana-related convictions) or individuals the licensee has identified as having been disproportionately impacted based on criteria established by the licensee.

Providing educational and outreach sessions in partnership with the MRA to individuals who qualified as disproportionately impacted individuals for the MRA’s social equity program (caregivers, individuals with marijuana-related convictions, individuals, and individuals from disproportionately impacted communities) or individuals the licensee has identified as disproportionately impacted based on criteria established by the licensee.

Providing mentorship programs for individuals who qualified as disproportionately impacted individuals for the MRA’s social equity program (caregivers, individuals with marijuana-related convictions, and individuals from disproportionately impacted communities) or individuals the licensee has identified as disproportionately impacted based on criteria established by the licensee.

Providing grants, loans, or monetary assistance to individuals seeking an adultuse license who have qualified for the MRA’s social equity program (caregivers, individuals with marijuana-related convictions, and individuals from disproportionately impacted communities) or individuals the licensee has identified as disproportionately impacted based on criteria established by the licensee.

Partnering in business ventures with licensees who qualified for the MRA’s social equity program or who the licensee has identified as disproportionately impacted based on criteria established by the licensee.

Providing training for employment in the marijuana industry for individuals who qualified as disproportionately impacted individuals for the MRA’s social equity program (caregivers, individuals with marijuana-related convictions, and individuals from disproportionately impacted communities) or individuals the licensee has identified as disproportionately impacted based on criteria established by the licensee.

Providing information and assistance for expungement of marijuana-related convictions for interested Michigan residents.

Determine How Will You Measure the Effectiveness of Your Social Equity Plan

In the same way a business owner would measure progress towards any other strategic goal or objective for his or her business, the MRA recommends that applicants identify in specific, concrete terms how they will measure the effectiveness of their social equity plans after they become licensed. Although the MRA does not require it, we recommend applicants include these measures of effectiveness in the social equity plan they submit with their adult-use application.

Promotion and Advertisement of Your Social Equity Plan

After applicants become licensed, the MRA recommends licensees promote and advertise their social equity plan in the same way they would any other strategic goal or objective. The public and other licensees have an interest in what licensees are doing to promote social equity. The MRA is also interested in providing recognition for licensees who have established meaningful social equity plans and partner with the MRA to promote and encourage participation in the marijuana industry by people who have been disproportionately impacted by marijuana prohibition and enforcement. The MRA plans to post on its website in the future the social equity plans that have been submitted by our licensees. Licensees who do not wish to have their social equity plans posted will have the option of refusal, although the MRA will indicate that the licensee has chosen not to publish the social equity plan.

Link to Official Release Document

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