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Committee advances voter‑referendum resolution to let AG pursue remedies for alleged fraud in social‑equity marijuana licenses
Summary
SCR 10‑47 would give the Attorney General authority to investigate and seek restoration of social‑equity marijuana licenses and other enforcement actions; advocates described widespread predatory agreements that transferred licenses away from intended recipients, while industry representatives warned of constitutional and contractual problems.
Sponsor presented SCR 10‑47 as a voter referral authorizing the Attorney General, with DHS, to investigate predatory agreements related to the April 8, 2022 social‑equity lottery and to pursue remedies including receivership and restoration of licenses to original 51% owners if fraud is found.
Celeste Rodriguez (founder, Acre 41) and other social‑equity advocates testified that 24 of the 26 lottery‑issued social‑equity licenses ended up controlled by operators who would not have qualified under the program, often after applicants signed agreements before the lottery that advocates characterize as predatory. Rodriguez said she has litigated and advocated on behalf of affected applicants and described the outcomes as licenses "stolen in broad daylight."
Opponents from the industry (including Steve Barclay and counsel for existing license-holders) urged caution, arguing many lottery winners sold or partnered after receiving licenses because they lacked capital or business expertise; counsel warned that retroactive remedies could impair contracts and raise constitutional takings claims. The chiefs' association also urged careful review of statutory mechanics.
The committee voted 4–3 to give SCR 10‑47 a due‑pass recommendation, while several members said they expected amendments and wanted clearer enforcement mechanics and due‑process protections before a floor vote.
