Within Virginia’s adult use sector a social equity license applicant is a person who has lived or been domiciled for at least 12 months in the state and is either
(i) an applicant with at least 66 percent ownership by a person or persons who have been convicted of a certain misdemeanor marijuana offenses;
(ii) an applicant with at least 66 percent ownership by a person or persons who is the parent, child, sibling, or spouse of a person who have been convicted of a certain misdemeanor marijuana offenses;
(iii) an applicant with at least 66 percent ownership by a person or persons who have resided for at least three of the past five years in a jurisdiction that is determined by the Board after utilizing census tract data made available by the United States Census Bureau to have been disproportionately policed for marijuana crimes;
(iv) an applicant with at least 66 percent ownership by a person or persons who have resided for at least three of the last five years in a jurisdiction determined by the Board after utilizing census tract data made available by the United States Census Bureau to be economically distressed; or
(v) an applicant with at least 66 percent ownership by a person or persons who graduated from a historically black college or university located in the Commonwealth.
Social Equity
Social Equity Definition / Criteria
Within Virginia’s adult use sector a social equity license applicant is a person who has lived or been domiciled for at least 12 months in the state and is either
(i) an applicant with at least 66 percent ownership by a person or persons who have been convicted of a certain misdemeanor marijuana offenses;
(ii) an applicant with at least 66 percent ownership by a person or persons who is the parent, child, sibling, or spouse of a person who have been convicted of a certain misdemeanor marijuana offenses;
(iii) an applicant with at least 66 percent ownership by a person or persons who have resided for at least three of the past five years in a jurisdiction that is determined by the Board after utilizing census tract data made available by the United States Census Bureau to have been disproportionately policed for marijuana crimes;
(iv) an applicant with at least 66 percent ownership by a person or persons who have resided for at least three of the last five years in a jurisdiction determined by the Board after utilizing census tract data made available by the United States Census Bureau to be economically distressed; or
(v) an applicant with at least 66 percent ownership by a person or persons who graduated from a historically black college or university located in the Commonwealth.
Social Equity Provisions
Social Equity provisions have yet to be established by the board. However, the law requires the creation of a program to provide loans to qualified social equity cannabis licensees for the purpose of promoting business ownership and economic growth by communities that have been disproportionately impacted by the prohibition of cannabis.
While still being developed, the social equity program should:
License Priorities and Set Asides
Social Equity provisions have yet to be established by the board. However the law requires the board to establish standards and requirements for (i) any preference in the licensing process for qualified social equity applicants, (ii) what percentage of application or license fees are waived for a qualified social equity applicant, and (iii) a low-interest business loan program for qualified social equity applicants.
Fee Waivers and Reductions
Social Equity provisions have yet to be established by the board. However the law requires the board to establish standards and requirements for (i) any preference in the licensing process for qualified social equity applicants, (ii) what percentage of application or license fees are waived for a qualified social equity applicant, and (iii) a low-interest business loan program for qualified social equity applicants.
Other Financial Support for Social Equity Applicants and Licensees
Virginia has not yet announced how much money will be provided to specifically support its social equity program, nor whether the funds will be available to program participants prior to the states first commercial cannabis sales in 2024.
The law does however establish the Virginia Cannabis Equity Business Loan Fund, which is derived from the Cannabis Equity Reinvestment Fund. Money in the Equity Business Loan Fund shall be used only for the purposes of providing low-interest and zero-interest loans to social equity qualified cannabis licensees in order to foster business ownership and economic growth within communities that have been the most disproportionately impacted by the former prohibition of cannabis.
The wider Cannabis Equity Reinvestment Fund will receive 30% of all tax profits (an estimated $26 million in the first year of sales and $128 in the fifth). Funds will be used for the following activities.