5417.1 At least fifty percent (50%) of all new cultivation center, manufacturer, internet retailer, retailer, and courier licenses shall be set aside for social equity applicants. Only social equity applicants and medical cannabis certified business enterprises are eligible to receive equity, grants, and loans from the medical cannabis social equity fund.

5417.2 A social equity applicant is entitled to a seventy-five percent (75%) fee reduction on application and licensing fees associated with receiving a medical cannabis facility license for the first three years. The seventy-five (75%) fee reduction for social equity applicants does not apply to endorsement fees, including the application fees.

5417.3 To qualify as a social equity applicant, an applicant must satisfy two (2) or more of the following criteria:

(a) Has at least one (1) owner who is a District resident, individually or collectively owns at least fifty percent (50%) of the business, and is a returning citizen;

(b) Has at least one (1) owner who is a District resident, individually or collectively owns at least fifty percent (50%) of the business, and is married to or in a civil union, has a child, or is the child of a person or has a non-parent legal guardian, or a grandparent or a sibling who is or has been arrested, convicted, or incarcerated in the District or any other jurisdiction for a cannabis or drug-related offense; or

(c) Has at least one (1) owner who is a District resident, individually or collectively owns at least fifty percent (50%) of the business and has an income that does not exceed one hundred and fifty percent (150%) of the median family income as set forth by the United States Department of Housing and Urban Development, adjusted for household size, at the time the applicant submits the application.

5417.4 In order to qualify for a social equity applicant status, an applicant shall file with its application a Social Equity Declaration Form.

5417.5 A complete application from a social equity applicant shall also provide or describe the following for each owner:

(a) The two (2) or more criteria that qualify the applicant for social equity status in accordance with § 5417.3;

(b) An affidavit, which shall be referred to as the Social Equity Applicant Attestation Form, attesting to:

(1) The number of owners who meet the criteria for a social equity applicant;

(2) The ownership interests, incomes, and net worth of any owners;

(3) The location of all managerial employees in the principal office;

(4) The residency of owners, employees, and contractors; and

(5) The locations of the assets and the percentages of the assets in each location.

(c) Proof of District residency for each owner claiming social equity applicant status, which shall include two (2) of the following:

(1) Proof of payment of D.C. personal income tax during the last tax period;

(2) A current tax withholding statement which contains the applicant's name;

(3) Current official documentation of financial assistance from the District (such as Temporary Assistance for Needy Families or housing assistance);

(4) Valid, unexpired D.C. driver's license or non-driver's identification;

(5) Valid, unexpired vehicle registration;

(6) Valid, unexpired lease and rent receipts for a period within two (2) months immediately preceding consideration of residency; or

(7) Utility bills with paid receipts or cancelled checks from a period within the two (2) months immediately preceding the filing of the application.

(d) If claiming social equity applicant status based upon returning citizen status, each owner claiming this status shall provide with their application law enforcement or court documents demonstrating proof of arrest, conviction, or incarceration for a drug-related offense;

(e) If claiming social equity applicant status based upon the incarceration of an immediate family member due to cannabis or drug-related offense, each owner claiming this status, shall:

(1) Identify the immediate family member that qualifies the applicant;

(2) Identify the nature of the qualifying relationship, including whether the relation is based on a marriage or civil union, and whether the applicant is the parent of a qualifying child or the child of a qualifying parent or non-parent legal guardian, or has a qualifying grandparent or sibling;

(3) Provide documents proving the relationship (e.g., birth certificate, marriage certificate, proof of legal guardianship);

(4) Provide law enforcement or court documents demonstrating arrest, incarceration, or conviction; and

(5) Provide law enforcement or court documents demonstrating that the arrest, conviction, or incarceration of the qualifying relative was due to a cannabis or drug-related offense.

(f) If claiming social equity applicant status based on income, for each owner claiming this status, the applicant shall provide proof of income and household size, which shall include:

(1) Documentation establishing proof of income tax filing or withholding in the District of Columbia from the tax year prior to the date of the application; or

(2) If the documentation described in subparagraph (1) is not possible to obtain, a notarized statement of net income anticipated to be received with the next twelve (12) months, based on the previous twelve (12) months and explanation of the reason for failing to obtain one of the documents listed in subparagraph (1) of this paragraph.

SOURCE: Emergency and Third Proposed Rulemaking published at 58 DCR 3299 (April 15, 2011)[EXPIRED]; as amended by Emergency and Fourth Proposed Rulemaking published at 58 DCR 7207 (August 12, 2011)[EXPIRED]; as amended by Final Rulemaking published at 58 DCR 10128, 10198 (December 2, 2011); as amended by Final Rulemaking published at 66 DCR 10217 (August 9, 2019); as amended by Final Rulemaking published at 71 DCR 002388 (March 8, 2024); as amended by Final Rulemaking published at 73 DCR 002136 (February 20, 2026).