On March 3, 2024, Mass Live reported that Ominique Garner, a well-known cannabis activist in Massachusetts, had publically urged all cannabis-related businesses (CRBs) in the state to sign an equity pledge.
At the time of writing, Garner stated that more than fifty (50) cannabis businesses had signed the equity pledge in Massachusetts. Supporters include cannabis product retailers, ancillary service businesses, cultivation facility owners, and Massachusetts license and social equity applicants.
Who Is Ominique Garner?
Ominique Garner is a small business owner of A.V. Rose Farm. In January 2020, Garner spoke three years ago before the Massachusetts Cannabis Control Commission in Worcester. The forum was held after high-profile minority business owners shared that they felt social equity businesses were not provided with support to compete against corporate cannabis industry leaders and MSOs.
At that time, no black American entrepreneur had opened a recreational (adult-use) cannabis retail store. There were 699 applications pending to the Massachusetts Cannabis Control Commission in February 2020; however, only a small number of those applications were from communities that the Massachusetts cannabis social equity program was intended to support.
Garner has remained a social equity program activist in Massachusetts, citing that access to equity and loans for cannabis start-up businesses owned by black Americans remains difficult. This has many minority cannabis entrepreneurs in the state feeling like they have been shut out of the opportunities that the cannabis industry has provided.
Delays in licensing have cost some cannabis entrepreneurs hundreds of thousands of dollars, which is also, according to Garner, a tremendous barrier that prevents black entrepreneurs from launching and blocks full participation in the Massachusetts cannabis industry.
Obstacles Faced By Minority Entrepreneurs in Massachusetts
According to Omnique Garner, the obstacles facing black cannabis entrepreneurs are not limited to funding and equity. Before a business owner can join the Cannabis Control Commission’s applicant queue, they must sign a contract with a host municipality. An agreement must be reached with the city or town where the owner wishes to operate.
While the state has a social equity program, municipalities are not held to those same rules. Some municipalities have been accused of disreputable practices, negotiating more than the 3 percent sales tax outlined by state lawmakers. In one investigation, WGBH News reviewed 500 host community agreements between municipalities and potential cannabis business owners.
The investigation found that almost two-thirds of the agreements required more than the standard fees outlined by state law. That included large donations to substance abuse programming annually (in one case, $100,000 per year) and an additional donation to support local youth sports simply to be approved for a business license.
Jasiel Correia, the former mayor of Fall River, was charged with extortion, bribery, fraud, and other crimes in a 24-count federal indictment that alleges he defrauded marijuana companies that wished to open businesses in his city.
Does Massachusetts Have a Cannabis Social Equity Program?
Massachusetts has implemented social equity programs aimed at promoting diversity and inclusion within the cannabis industry. These programs are designed to address the historical impacts of marijuana prohibition on communities disproportionately affected by enforcement. Here’s what I can tell you based on that information:
Equity Priority Review
The Massachusetts Cannabis Control Commission (CCC) offers an Equity Priority Review process for applicants who meet specific criteria related to social equity. This includes individuals from communities disproportionately impacted by the war on drugs, low-income individuals, and those with past marijuana-related convictions.
Reduced Fees and Technical Assistance
Qualified applicants under the Equity Priority Review may receive benefits such as reduced application fees and access to technical assistance programs. These resources are intended to support equity applicants in navigating the licensing process and establishing their cannabis businesses.
Priority Licensing
Social equity applicants may receive priority consideration for specific cultivation, processing, and retail sales licenses. This prioritization aims to level the playing field and provide equitable opportunities for individuals from historically marginalized communities.
Community Impact
The social equity programs in Massachusetts are designed to not only provide economic opportunities for individuals but also to reinvest in communities disproportionately affected by marijuana prohibition. A portion of cannabis tax revenue is allocated to programs and initiatives to address past enforcement’s impacts and promote social and economic empowerment.
Training and Education
In addition to financial assistance and priority licensing, the state may provide training and educational resources to equity applicants. This could include workshops on regulatory compliance, business development, and other aspects of operating a successful cannabis business.
Ongoing Evaluation and Improvement
The effectiveness of Massachusetts’ social equity programs is continuously evaluated, with adjustments made as needed to ensure that they meet their intended goals. This may involve gathering feedback from stakeholders, monitoring the outcomes of equity initiatives, and making policy changes accordingly.
It’s important to note that specific details and eligibility requirements for social equity programs may vary as regulations evolve and new initiatives are introduced. For the most up-to-date information on Massachusetts’ social equity programs for the cannabis industry, I recommend consulting official sources such as the Massachusetts Cannabis Control Commission website or contacting relevant state authorities directly.
What Is The Cannabis Equity Pledge in Massachusetts?
The Cannabis Equity Pledge in Massachusetts is a commitment made by cannabis businesses to prioritize equity and inclusion in the cannabis industry. The pledge was developed in response to concerns about ensuring that communities disproportionately affected by the war on drugs have equitable opportunities to participate in the burgeoning legal cannabis market.
Key components of the Cannabis Equity Pledge typically include:
- Equitable Hiring Practices: Commitment to hiring individuals from communities disproportionately impacted by the war on drugs, including those with prior cannabis-related convictions.
- Equitable Business Opportunities: Pledging to provide opportunities for ownership, investment, and employment to individuals from communities historically marginalized by cannabis prohibition.
- Community Reinvestment: Commitment to reinvesting a portion of profits into communities disproportionately impacted by past drug policies, including funding for education, job training, and other social programs.
- Diversity and Inclusion: Creating a diverse and inclusive workplace culture that values and respects individuals from all backgrounds.
- Advocacy and Policy Reform: Supporting efforts to advance equitable cannabis policies and regulations at the local, state, and federal levels.
The Cannabis Equity Pledge serves as a voluntary initiative for businesses in the cannabis industry to demonstrate their commitment to social equity and responsibility. By signing the pledge, businesses signal their dedication to fostering a more equitable and inclusive cannabis industry.
Aaron Bloom serves as the CEO, overseeing the mission and growth of DocMJ and Medwell Health and Wellness Centers. Aaron’s passion for improving patients’ lives comes from his background in health care. For more than 20 years, Aaron owned, operated, and represented traditional healthcare organizations. This experience created a passion for finding improved ways to relieve suffering. His goal as CEO is to work daily to relieve all patients who seek better health and wellness through the medicinal benefits of medical cannabis and evidence-based alternative medicines.
