Michigan Reduces Cannabis Fees for Social Equity Program Applicants

In 2019, the Michigan Marijuana Regulatory Agency took a proactive approach to the social equity program mandated by the legalization law passed in 2016. The program aimed to offer opportunities to communities disproportionately impacted by cannabis enforcement. To that end, regulators slashed licensing fees to give business owners an expedited pathway to profitability.

Cannabis Licensing Fee Reductions

The agency selected 19 municipalities that would qualify for the fee reductions, which could provide up to 60% off the regular price. For instance, any applicant who had lived in one of these municipalities for the last five years was eligible for a 25 percent discount.

Applicants who owned the majority share of a business, lived in these areas, and had a cannabis-related conviction received an additional 25 percent reduction. In addition, medical marijuana caregivers registered for at least two years between 2008 and 2017, who also had a cannabis conviction, earned an extra 10 percent off.

Qualifications for Social Equity Program

The Michigan Marijuana Regulatory Agency weighed a few key components when considering a community for the Social Equity Program. Specifically, eligibility was based on both cannabis-related convictions and the poverty rate. The agency selected municipalities where the total number of cannabis-related convictions exceeded the statewide average. From those counties, it then chose communities where 30 percent or more of the population lived below the federal poverty level.

The communities included:

• Albion
• Benton Harbor
• Detroit
• East Lansing
• Ecorse
• Flint
• Highland Park
• Hamtramck
• Inkster
• Kalamazoo
• Morris
• Pleasant
• Muskegon
• Muskegon Heights
• Niles
• Pontiac
• River Rouge
• Saginaw
• Ypsilanti

Andrew Brisbo, executive director of the Marijuana Regulatory Agency, noted that the program “will lead the nation in accomplishing social equity objectives” that were an integral part of the voter-approved legalization legislation. To inform these communities, the agency dispatched representatives to the 19 cities to explain how the program would work. This outreach came before applications for new cannabis businesses opened on November 1.