Social Equity Policies in Adult-Use Legalization Laws

State	Expungement	Social Equity Licensing	Reinvestment	Other
Colorado (2012)	In 2017, lawmakers enacted a law for expungement of prior misdemeanor convictions. Under authority granted by a law approved by the state legislature, Gov. Jared Polis pardoned 2,732 convictions involving possession of an ounce or less in October 2020. Eligibility was narrowed by several restrictions, and many with prior arrests were excluded.	In June 2020, Gov. Polis signed HB20-1424, which established a social equity licensee classification. An applicant is eligible if: They lived in a disproportionately impacted area for at least 15 years; they or their family member were punished for a prior marijuana offense; or their household income in the year prior to application did not exceed 50% of the state median income. Social equity licensees are granted access to mentorship programs and financial incentives.	None of Colorado’s cannabis tax revenue is specifically directed to disproportionately impacted communities. In January 2021, Gov. Jared Polis requested $5 million to support cannabis entrepreneurs, including a loan program for social equity licensees.	MJ Biz Daily published a 2020 article on Colorado’s industry and social equity plan.
Washington (2012)	Gov. Jay Inslee signed a bill in 2019 that allows any person who was convicted of a misdemeanor marijuana offense when they were 21 or older to apply for and be granted expungement.	In March 2020, Gov. Inslee signed HB 2870 to create a new social equity program for social equity licensees (read a summary here). An applicant is eligible if they have lived for at least five of the past 10 years in a disproportionately impacted area, or if they or a family member have been convicted of a marijuana offense. The Washington Liquor and Cannabis Control Board may only issue new or revoked licenses to social equity applicants. The law also establishes a $1.1 million grant program to assist social equity applicants’ business plans.	None.	MJ Biz Daily published a 2020 article on Washington’s social equity program. Seattle’s city government established a team to explore social equity policies and write a report in 2020.
Oregon (2014)	In 2019, Gov. Kate Brown signed SB 420, which allows individuals to file motions to expunge low-level marijuana offenses that occurred prior to 2015 without paying filing fees. This followed passage of SB 364 in 2015, which directs courts to evaluate requests to set aside prior convictions as if they had occurred under current law, making it possible to expunge several kinds of marijuana offenses that occurred prior to 2013.	None.	Not at the state level. In 2016, the city of Portland approved a local 3% sales tax on marijuana, which funds the SEED Grant to support business development and social justice programs.	MJ Biz Daily published a 2020 article on Oregon’s industry and its efforts to promote social equity. In 2019, Gov. Brown signed SB 970, which prohibits landlords from discriminating against those who either use medical marijuana or have marijuana-related convictions.
Alaska (2014)	None. A sealing bill passed the House but died in the Senate in 2018. A similar bill was introduced in 2019.	None.	None.	None.
Nevada (2016)	In 2019, Gov. Sisolak signed a bill that allows individuals to have their past convictions sealed if the conduct — such as marijuana possession — has been legalized or decriminalized. In June 2020, the governor pardoned roughly 15,000 past marijuana convictions.	None.	Not at the state level. Clark County (where Las Vegas and many of the state’s marijuana businesses are located) allocates some local tax dollars to supporting unhoused people.	MJ Biz Daily published a 2020 article on Nevada’s industry and its efforts to promote social equity.
California (2016)	Prop 64, which legalized marijuana in 2016, established a pathway for expunging or resentencing offenses that were reduced or eliminated by the law. In 2018, Gov. Jerry Brown signed AB 1793, making expungement automatic. The law, however, lacks an enforcement mechanism, and as of January 2021, many county court systems had still failed to process the expungements required by the 2018 law. Code for America project leaders said that approximately 144,000 cannabis sentences had been reduced or dismissed with help from their online tool.	There are no social equity provisions at the state level. However, some local governments have established social equity licensing and programs to support people from disadvantaged groups who wish to enter the marijuana industry.	Per the voter-approved law, the state directed nearly $30 million from cannabis tax revenue in 2020 to a grant program that supports local programs to help disadvantaged communities in 2020. At least 50% of the grants must go to local nonprofit organizations. By FY 2022-23, this grant pool will increase to $50 million annually. The state has also dispersed funding to local governments to support their social equity programs.	MJ Biz Daily published a 2020 article on California’s industry and its efforts to promote social equity.
Maine (2016)	None. However, in 2021, lawmakers introduced legislation to seal or expunge prior marijuana convictions.	None.	None.
Massachusetts (2016)	Under a law passed in 2018, individuals may be eligible to have their past records for marijuana possession sealed. However, many state residents have struggled to clear their records.	Massachusetts regulators have established a program to support businesses who qualify as social equity and economic empowerment applicants. The Social Equity Program is “a free, statewide, technical assistance and training program that provides education, skill-based training, and tools for success in the cannabis industry.” Prospective operators who qualify as Economic Empowerment Applicants are prioritized in the licensing process. Applicants who have been directly impacted by punitive drug laws or who are from communities disproportionately affected may qualify. Businesses that are not social equity or economic empowerment licensees are also incentivized and required to develop diversity plans and goals related to social equity. Local cities and towns in Massachusetts have also established local social equity programs. Licenses for retail delivery are exclusively reserved for social equity and economic empowerment licensees. In the second half of 2020, the Cannabis Control Commission approved a policy that will allow delivery license holders to purchase products directly from wholesalers (rather than only retailers). It is hoped that this new policy will allow delivery businesses to be more successful, and thus further diversify the industry.	None yet, though it is permissible under existing law. In July 2020, members of the Cannabis Control Commission expressed support for S 2650, a bill that would establish a social equity loan fund for license applicants disproportionately harmed by previous marijuana prohibition.	MJ Biz Daily published a 2020 article on Massachusetts’ industry and its efforts to promote social equity.
Michigan (2018)	In 2020, Michigan’s governor signed legislation to "set aside" marijuana-related and other kinds of convictions. They will not be public records, but state police will keep a non-public record. Individuals can petition to expunge past marijuana misdemeanors. In addition, after seven years, up to four misdemeanor convictions can be set aside (marijuana-related or not), along with up to two non-violent felonies (excluding certain offenses.) A separate bill allows for an automatic expungement process for some offenses, including some marijuana offenses, in 2022.	The 2018 voter-approved ballot initiative that legalized marijuana directed state regulators to develop “a plan to promote and encourage participation in the marihuana industry by people from communities that have been disproportionately impacted by marihuana prohibition.” In May 2020, the Marijuana Regulatory Agency announced an expansion of the state’s social equity program. Under the plan, cannabis businesses owned by people who have prior marijuana convictions or who are from communities disproportionately affected by marijuana prohibition may be eligible for discounted licensing fees up to 75%. The regulating agency also provides assistance and training to social equity applicants. After approval of a social equity ordinance by the city council in November 2020, Detroit began accepting applications for cannabis businesses in January 2021, and at least 50% must be awarded to “Legacy Detroiters,” a designation that gives priority to applicants who have lived in the city for a certain period of time and/or have a prior marijuana conviction.	None.	MJ Biz Daily published a 2020 article on Michigan’s industry and its efforts to promote social equity.
Illinois (2019)	Automatic expungement for up to 30 grams, via the governor’s clemency process. For amounts of 30-500 grams, the state's attorney or the individual can petition the court to vacate the conviction. On the final day of 2020, Gov. J.B. Pritzker announced the pardon of nearly 500,000 low-level marijuana convictions.	The state’s legalization law establishes a “social equity applicant,” which is a person who was arrested or convicted of a minor cannabis offense, or who is related to someone who was. It can also be a person who lives in or has ties to a community with high rates of poverty and/or that has been disproportionately impacted by the war on cannabis. This can include those individuals living in such an area now, or for five of the last 10 years. If an applicant qualifies for the social equity program, they receive a significant points advantage compared to other applicants for licenses. They can also access the Cannabis Business Development Fund to help defray start-up costs associated with entering the licensed cannabis industry. This includes a 50% reduction of the non-refundable license application fee and any other non-refundable fees, along with loans and other financial incentives.	The state’s legalization law established the Restore, Reinvest and Renew (R3) Program. According to the state, “The R3 Program drives 25% of cannabis tax revenue to fund grants for violence prevention, reentry, youth development, economic development and civil legal aid services in areas of the state that are objectively found to be acutely suffering from the horrors of violence, bolstered by concentrated disinvestment, identified by their rates of gun injuries, child poverty, unemployment, and incarceration rates.”	MJ Biz Daily published a 2020 article on Illinois’ industry and its efforts to promote social equity. In addition to assistance entering the regulated cannabis industry, there is more opportunity available with a wider range of business licenses.
Vermont (2020)	In October 2020, Gov. Phil Scott signed S. 234 to establish a procedure for automatically expunging prior marijuana convictions that involved possession of up to two ounces of cannabis and/or the cultivation of up to four mature plants. The law may help as many as 10,000 Vermonters with prior marijuana convictions.	The state’s Cannabis Control Board, which will oversee and regulate the legalization program, is directed to prioritize and consider cannabis business applicants who would “foster social justice and equity in the cannabis industry by being a minority or women-owned business.”	None.
Arizona (2020)	The 2020 voter-approved legalization ballot measure allows expungement for possession of up to 2.5 ounces of cannabis and for cultivation of up to six plants. Prosecutors and the Attorney General can file expungement motions on behalf of individuals.	The Department of Health Services will issue 26 licenses to applicants who qualify under the Social Equity Ownership Program.	The legalization law sets aside 7% of marijuana tax revenue for the Justice Investment Fund, which will provide grants to health programs and nonprofit organizations to support communities disproportionately harmed by marijuana prohibition.
New Jersey (2020)	In 2019, Gov. Phil Murphy signed legislation establishing an expedited process for expunging low-level marijuana offenses.	Under the bills signed into law in February 2021, 25% of the total licenses issued, regardless of class, must be awarded to applicants who have lived in “impact zones” (municipalities with higher levels of police activity, unemployment, and/or poverty) or to applicants who plan to ensure at least 25% of their workforce will be comprised of people who live in impact zones. Additionally, at least 25% of all licenses awarded must be given to microbusinesses.	At least 70% of cannabis revenues (including fees and tax revenues) will be used for grants, loans, reimbursements of expenses, and other financial assistance, in municipalities defined as "impact zones."	The bills approved in February 2021 will rename the Office of Minority, Disabled Veterans, and Women’s Medical Cannabis Business Development by removing the word “Medical.” The office’s purpose is to promote participation in the industry by people from socially and economically disadvantaged communities. The office is tasked with ensuring that not less than 30% of the total number of cannabis licenses issued go to businesses certified by the office.
Montana (2020)	Under the voter-approved 2020 ballot initiative, I-190, conduct that is no longer criminal can be expunged or be eligible for resentencing.	None.	None.