Michigan’s Cannabis Regulatory Agency has announced a new social equity grant that will award up to $1 million in grants for educational needs, business requirements, or community reinvestment.
The grant application, posted on Thursday, states that money for the grant program has been appropriated in 2023-2024’s state budget “to increase participation in social equity programs and to encourage and promote participation in marihuana industries by people from the communities who have been disproportionately affected by marihuana enforcement and prohibition.”
In a press statement about the new equity grants program, Sen. Sarah Anthony of Lansing (D) stated that she was “honored” to be the one who spearheaded social equity funding for the state budget in this year. “I understand how crucial funding is to those who work in the cannabis business but do not have the resources of others. We must begin to assist those who are disproportionately affected by the cannabis prohibition. These funds will help those who work in the social equity sector grow their business and give back to their community.”
Grant awards under the program can be used to fund one or more categories.
- Employees of an entity may use funds spent on employee training to attend classes or courses relevant to their business at accredited institutions.
- The funds spent on business expenses can be used to comply with licensing and regulatory laws and rules.
- The funds spent on community investments can be donated or used to support organizations, charities, non-profits and/or other entities that have a positive impact on the community where the entity is located.
Brian Hanna, Executive Director of the CRA, said that many social equity licensees had invested all they could in their cannabis businesses and deserved this boost. I’m looking forward to seeing how our licensees will use the funds, and what positive impact it can have on employees and communities.
For an entity to qualify, it must hold a valid license for adult-use cannabis, be owned by participants in the social equity programs, and be certified through CRA’s Social Equity All-Star Program, which requires licensees to publish their social equality plans.
On Thursday, December 7th at 9am, the Social Equity Team of CRA will be hosting an online presentation with questions and answers about program requirements and processes.
describes the event. The presentation will be followed with a question and answer session. This will allow attendees to ask their questions in real time.
Online, you can find the application form as well as FAQs and instructions. The deadline for CRA to receive them is 5 pm on Friday, January 26.
The number of grantees approved will determine the amount that each grantee receives.
The website of the program states that “once it is determined how many applications meet the criteria for acceptance,” each grantee approved will receive an equally-sized share of the grant money.
The CRA has announced that the awards will be paid out in a lump-sum to all entities no later than 15 March 2024.
Michigan legalized marijuana for adult use in 2018 and sales began in December 2019.
According to a report from the House Fiscal Agency of the state, the revenue generated by legal marijuana increased by almost half (49%) during the last fiscal year. This surpassed the earnings from alcohol.
The marijuana excise taxes generated $52.4 million of tax revenue in October 2023, more than any other source, including sales and use tax, income tax, insurance tax, and tobacco tax.
In the last few months, the state has broken sales records while the cost of marijuana remains at record lows. The price of an adult-use ounce of cannabis is now hovering around $98, a mere few months ago. By comparison, in December 2021 the price of an ounce would have been about $180.
Michigan Gov. Gretchen Whitmer, a Democrat, recently signed two bills into law allowing state-licensed cannabis businesses to trade with tribal cannabis entities. Both bills took immediate effect.
According to an analysis by House staff, the bills were designed to maintain a level playing ground by requiring that tribal businesses pay the same rate of tax as other businesses.
In other parts of Michigan’s legal marijuana landscape, a change approved by the state Civil Service Commission this summer took effect in October . It ended pre-employment cannabis testing for most government workers. This change also allows those who have already been penalized for positive THC test to get the sanction revoked retroactively.
The bill that was recently introduced to the legislature will legalize the use of psychedelic plants, fungi and mushrooms as long as the activities such cultivation and distribution are not done for money or any other valuable consideration.
Michigan legislators called for the U.S. Congress to invest in research and development of “non-technology treatments” such as psychedelics, which can help deal with psychological trauma resulting from military service.
Majorities of Florida voters in every demographic support the marijuana legalization ballot initiative
Photo by Mike Latimer.
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