Will there be a licensing round for social equity applicants in July?
Here's what we know, folks: MN-OCM has recommended to the legislature that they be allowed to conduct an early licensing round for social equity applicants only, with both an application and a lottery component. That could happen as soon as July!
Couple of caveats, though:
-It is not certain. Needs approval by the Legislature (we'll know much more in about 6 weeks).
-OCM later said that they are not proposing that the successful licensees could OPEN earlier - just that they would get the license and could therefore fundraise and get set up in the meantime (e.g. invest in a location & equipment).
At the same time, it's a huge opportunity for social equity applicants. If you think you might qualify as a social equity applicant, please reach out. We can help you figure out whether you do and next steps towards a strong license application.
Who qualifies as a social equity applicant?
Broadly speaking, there are 4 ways under HF100. Note that it is not race-related. Instead:
1) You or a close family member were convicted of possession or sale of cannabis prior to May 1, 2023 [note: this could be in any state, or federal, as I read it];
2) You are a service-disabled veteran, current or former member of the national guard, or lost honorable status due to a cannabis-related offense [note: this does NOT say all veterans];
3) You have been a resident for 5+ years of an area that meets certain standards for poverty or disproportionate enforcement of drug laws; or
4) You qualify as an "emerging farmer," a loose definition that includes many categories of Minnesotans who are traditionally less likely to farm (but this may be tightened up in the legislative session).
That's a summary. Contact me to talk about your specific details.
What about LLC applicants?
An entity applicant (which is what I advise my clients to do, so they can raise money and isolate their personal liabilities from their business) will be a social equity applicant if a certain percentage of its equity owners qualify as social equity applicants. OCM has suggested 65%, vs. 100% in HF100.