When preparing your adult-use license application, it’s critical to understand all of the requirements for your application’s success. One main requirement of the application is to prepare a cannabis social equity plan pursuant to Rule 4 (16) of the Marijuana Licenses Rule Set (R 420.4(16) under the Michigan Regulation and Taxation of Marijuana Act [MRTMA]).

According to the rule, an applicant seeking licensure under the MRTMA must provide a social equity plan, detailing how they aim to:

  1. promote and encourage participation in the marijuana industry by people from communities that have been disproportionately impacted by marijuana prohibition/enforcement, and
  2. to positively impact those communities.

Do you need help preparing a cannabis social equity plan? How about getting started in the marijuana industry or taking your business to the next level? Request a consultation now.

cannabis social equity plan

First Steps in Developing a Social Equity Plan

You may be asking yourself, how can I meet this requirement?

What should I consider when developing a cannabis social equity plan?

First, you should examine the municipality where you plan to operate.

Have they enacted any specific social equity requirements?

If so, make sure to include these in your social equity plan.

To identify if these requirements exist, you may need to complete a thorough review of the application requirements, applicable municipal ordinances, and consult with an experienced cannabis attorney, who can complete the municipal research on your behalf.

After determining the municipal requirements, you should review your cannabis business’ objectives and strategic goals and determine how your social equity plan will help meet these objectives and goals.

What to Include in Your Social Equity Plan

The following are some examples that licensees in Michigan and other states have included in their social equity plans:

  • Employing individuals from disproportionately impacted communities at their marijuana establishment(s). The Marijuana Regulatory Agency (MRA) compiled a list of disproportionately communities.
  • 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 identified as having been disproportionately impacted based on criteria established by the licensee.
  • Providing mentorship programs for individuals who qualified as disproportionately impacted individuals for the 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.
  • 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.

These examples should be used for guidance when developing your company’s plan.

Therefore, they should not be considered to be an exhaustive list.

You should strive to develop your own meaningful, relevant, and measurable goals for this plan that can be outlined in concrete terms.

Think of it in the same way you would measure any other strategic goal or objective for your business.

Jumpstart Your Cannabis Business

In addition, the MRA is interested in recognizing those licensees who’ve developed and established meaningful social equity plans.

An experienced cannabis attorney can assist you in developing a social equity plan that not only meets all of the recommendations and requirements, but that encompasses the mission of both the social equity initiative and your company.

Do you need help preparing a cannabis social equity plan? How about getting started in the marijuana industry or taking your business to the next level? Request a consultation now.

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