Social Equity Workshops for Aspiring Marijuana Entrepreneurs
Remember the War on Drugs? In the 1970s, President Richard Nixon instituted punitive drug laws and harsh prison sentences, with devastating effects on marginalized communities, especially poor, black, and Latino populations.
Marijuana played a central role in the mass criminalization of these groups. Now, Delaware residents with prior marijuana convictions or those living in areas most affected by repealed marijuana laws are being invited to participate in the state’s emerging marijuana industry.
Starting in September 2024, the Office of the Marijuana Commissioner will accept applications for “adult use” marijuana business licenses. To promote fair access, the office is holding a series of “social equity” workshops. The sessions are intended to inform potential applicants about the process of obtaining a social equity license in Delaware.
The first workshop was held at Delaware Technical Community College’s Stanton campus on June 5. Among the attendees was Santwan Williams, a Wilmington resident with a passion for plants and nature, especially growing marijuana.
He also said that he was once arrested for possession of marijuana. “I was in Smyrna for 90 days because of marijuana,” Williams said. “And now it’s cool.”
The 35-year-old said the conviction made it difficult for him to get a job. Williams said he attended the workshop to learn more about new marijuana laws and how they might affect his chances of working in the legal cannabis industry in the future.
Workshops cover legal and financial considerations
Although marijuana is legal in Delaware, it remains illegal under federal law. The workshop provided insights into the significant financial investments and legal ramifications of entering the marijuana industry. Along with social equity qualifications, topics included banking, tax, legal and real estate considerations.
Attendees had the opportunity to interact with state officials, guest experts and professionals from the Delaware Cannabis Industry Association prior to the workshop presentations and panel discussion.
Commissioner Rob Coupe opened the presentations with an overview of the process of obtaining a license and the timeline for the legal industry. Key points included:
- There is no government funding to support candidates, although legislation is pending.
- A discounted social equity application fee of $1,000 is offered.
- Two-year equity and microbusiness licenses issued by the Office of the Marijuana Commissioner are offered at a $4,000 discount.
- Most banks do not lend to marijuana businesses, and most insurance companies do not offer coverage.
- Local municipalities have the authority to reject proposals to locate a marijuana business within their jurisdiction.
Qualifying for a social equity license
Of the 125 licenses to be issued, only 47 of them will be social equity licenses. To be eligible to apply for social equity licenses, interested parties must meet the following criteria:
- Social equity applicants must have 51% ownership and control of the business.
- Have resided for at least five of the last 15 years in a disproportionately impacted area as indicated on a map defined in the Delaware Code regulating alcohol and marijuana. The map is being developed and will be published during the summer of 2024, before the application acceptance window opens.
- Was convicted or found delinquent of a marijuana-related offense under Delaware law before April 23, 2023, except in cases of delivery to a minor or for any offense involving a Level 3 quantity of marijuana as defined in the Code of Delaware.
- Had a parent, legal guardian, child, spouse or dependent who was convicted or found delinquent of a marijuana-related offense under Delaware law before April 23, 2023, except for delivery to a minor or for any offense involving a amount of Level 3 marijuana as defined in the Delaware Code.
More social equity workshop dates and locations
There are three more workshops scheduled for June. To register for a social equity workshop, visit the Office of the Marijuana Commissioner website. All workshops are scheduled from 3pm to 5:30pm. The presentations will start at 4pm. Check the dates and locations below:
Sussex County
June 12 – Owens Campus Delaware Technical Community College – 21179 College Drive, Georgetown.
Wilmington
June 18 – Wilmington Campus Delaware Technical Community College. 333 N. Shipley St., Wilmington.
County of Kent
June 25 – DNREC, Richardson & Robbins Building, 89 Kings Highway SW, Dover.
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Applicants for all license types must meet minimum criteria, including:
- A business plan with annual budget and pro forma financial statements.
- Experience, training and specialization of the candidate and managers.
- Programs for operations, training and personnel.
- Security, protection and deviation prevention plans.
“Adult use” recreational marijuana sales are expected to begin in spring 2025.
You can wcontact Anitra Johnson at ajohnson@delawareonline.com.