§ 21-28.11-31. Social equity assistance program and fund.
(a)(1) Findings. The general assembly finds that additional efforts are needed to reduce barriers
to ownership and/or participation in the cannabis industry for individuals and communities
most adversely impacted by the enforcement of cannabis-related laws.
(2) In the interest of establishing a legal cannabis industry that is equitable and accessible
to those most adversely impacted by the enforcement of cannabis-related laws, the
general assembly finds and declares that a social equity program should be established.
(3) The general assembly also finds and declares that individuals who have been arrested
or incarcerated due to cannabis related laws suffer long-lasting negative consequences,
including impacts to employment, business ownership, housing, health, and long-term
financial well-being.
(4) The general assembly also finds and declares that family members, especially children,
and communities of those who have been arrested or incarcerated due to cannabis related
laws, suffer from emotional, psychological, and financial harms as a result of such
arrests or incarcerations.
(5) Furthermore, the general assembly finds and declares that certain communities have
disproportionately suffered the harms of enforcement of cannabis-related laws. Those
communities face greater difficulties accessing capital to finance the start-up costs
for cannabis establishments.
(6) The general assembly also finds that individuals who have resided in areas of high
poverty suffer negative consequences, including barriers to entry in employment, business
ownership, housing, health, and long-term financial well-being.
(7) The general assembly also finds and declares that promotion of business ownership
by individuals who have resided in areas of high poverty and high enforcement of cannabis-related
laws furthers a more equitable cannabis industry.
(8) Therefore, in the interest of mitigating the harms resulting from the enforcement
of cannabis-related laws, the general assembly finds and declares that a social equity
program should offer, among other things, business assistance and license application
benefits to individuals most directly and adversely impacted by the enforcement of
cannabis-related laws who are interested in establishing or participating in a cannabis
business entity.
(b) There is created in the state treasury within the general fund, a fund which shall
be held separate and apart from all other state monies, to be known as the social
equity assistance fund. The social equity assistance fund, subject to appropriation,
shall be exclusively used for the following purposes:
(1) To provide grants to approved social equity applicants to pay for ordinary and necessary
expenses to establish and/or operate a cannabis establishment, and to also further
promote the goals of this chapter, including without limitation, job training and
workforce development, mentoring services and technical assistance;
(2) To support the waiver or reduction of application and licensing fees pursuant to this
section for social equity applicants; and
(3) To implement and administer programming for restorative justice, jail diversion, drug
rehabilitation and education workforce development for jobs related to cannabis cultivation,
transportation, distribution and sales.
(c) The social equity assistance fund shall be subject to appropriation. The fund shall
consist of all monies received on account of the state as a result of application
for, and licensing of, individuals and entities pursuant to the provisions of this
chapter, exclusive of licensing fees paid pursuant to the provisions of chapter 28.6
of this title. Additionally, except as otherwise provided, the fund shall consist
of all administrative penalties received for violations of this chapter, except tax
violations and interest earned on balances in the fund.
(d) The commission shall administer the social equity assistance fund and the authorized
disbursement of funds, as appropriated by the general assembly. In consultation with
the cannabis advisory board, the commission shall promulgate rules and regulations
establishing the criteria, eligibility, qualifications and process for administering
the disbursement of funds from the social equity assistance fund.
(e) Reporting. Beginning September 1, 2023, and each year thereafter, the commission shall annually
report to the governor and the general assembly on the outcomes and effectiveness
of this section that shall include, but not be limited to, the following:
(1) The number of persons or businesses receiving assistance under this section;
(2) The amount in financial assistance awarded in the aggregate, in addition to the amount
of grants awarded; and
(3) If applicable, the number of new jobs and other forms of economic impact created as
a result of assistance from the social equity assistance fund.
(f) Fee waivers.
(1) For social equity applicants as defined in § 21-28.11-3, the commission may waive up to one hundred percent (100%) of any nonrefundable license
application fees or any nonrefundable fees associated with acquiring a license to
operate a cannabis establishment, pursuant to rules and regulations promulgated by
the commission in consultation with the cannabis advisory board.
(2) If the commission determines that an applicant who applied as a social equity applicant
is not eligible for social equity status, the applicant shall be provided an additional
ten (10) days to provide alternative evidence that the applicant qualifies as a social
equity applicant. Alternatively, the applicant may pay all required fees and be considered
as a non-social equity applicant. If the applicant cannot do either, then any application
fee shall be returned and the application process shall be terminated.
(g) Transfers of cannabis establishment licenses awarded to a social equity applicant
are subject to all other provisions of this chapter, and applicable law; provided
however, that a license issued to a social equity applicant shall only be transferred
to another qualified social equity applicant as determined and approved by the commission.
(h) Reporting.
(1) By September 1, 2023, and on the first day of September of every year thereafter,
or upon request by the commission, each cannabis establishment licensed under this
chapter and § 21-28.6-12 ("The Edward O. Hawkins and Thomas C. Slater Medical Marijuana Actâ€�) shall report
to the commission, on a form to be provided by the commission, information that will
allow it to assess the extent of diversity in the medical and adult use cannabis industry
and methods for further reducing or eliminating any identified barriers to entry,
including without limitation, access to capital.
(2) Failure of a cannabis establishment to respond to the request of the commission to
complete the form, report, and any other request for information may be grounds for
disciplinary action by the commission pursuant to this chapter. The information to
be collected shall identify, without limitation, the following:
(i) The number and percentage of licenses provided to social equity applicants;
(ii) The total number and percentage of employees in the cannabis industry who meet the
criteria in the definition of social equity applicant; and
(iii) Recommendations on reducing or eliminating any identified barriers to entry, including
access to capital, in the cannabis industry.