Mohit “Moe” Asnani, a wealthy marijuana entrepreneur who contributed to Governor Katie Hobbs and other Democrats, is coming under fire for allegedly abusing the controversial Social Equity Ownership Program that was set up to award marijuana dispensary licenses to business owners affected negatively by previous laws restricting marijuana. Asnani is accused of preying on these disadvantaged dispensary owners, convincing them to give up their special licenses to him.
The Social Equity Ownership Program, which was established when Arizona voters passed Proposition 207 in 2020 legalizing recreational marijuana, granted 26 dispensary licenses to prospective owners who have had run-ins with the law related to marijuana, or are related to someone who has.
In order to qualify for the special license, applicants must control at least 51 percent of the business, and meet three of four possible criteria. They are: 1), “adversely affected by the enforcement of previous marijuana laws as demonstrated by an eligible cannabis conviction or expungement,” 2), immediately related to someone who fits (1), 3), lives at an address that “has been identified by the Department as being disproportionately affected by the enforcement of Arizona’s previous marijuana laws,” and 4) an income below 400 percent of the poverty level.
The special licenses, which are distributed through a lottery, are in addition to the regular dispensary licenses the state issues, which were around 130 in 2022. The special licenses are worth as much as $20 million each, according to the Tucson Weekly. They enable the less well-off owners to compete against large multi-state marijuana companies.
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