California Announces Latest Round of Cannabis Equity Grants; Sonoma County to Receive $75K
By Lauren Mendelsohn
March 24, 2021
On March 15, the California Governor’s Office of Business and Economic Development (GO-Biz) announced the recipients of the 2020-2021 Cannabis Equity Grants Program for Local Jurisdictions. These grants, offered in partnership with the Bureau of Cannabis Control, are offered to cities and counties in an effort to “advance economic justice for populations and communities disproportionately affected by cannabis prohibition by providing funding to local jurisdictions that are committed to promoting equity in the legal cannabis marketplace and eliminating barriers to entering the regulated cannabis industry.” The State has $15 million set aside for these grants during this cycle.
The purpose of these equity grants is to assist individuals and communities who have been most harmed by cannabis prohibition and the War on Drugs more broadly, by reducing or removing barriers to entry into the legal cannabis industry and advancing economic justice so that those in disproportionately impacted groups have a fair chance to participate in this sector. The term “equity” recognizes that different people and groups have different starting points and often need different resources in order to achieve a level playing field. Who qualifies as an equity operator will vary from jurisdiction to jurisdiction.
Sonoma County, where our office is located, was one of eight jurisdictions selected to receive funding for equity program assessment/development (a “Type 1” grant). Our office played a key role, both in educating the County about the grant and in reminding the County to apply for funding. The other jurisdictions approved for this type of grant include:
County of San Diego $75,000
County of Sonoma $75,000
County of Trinity $75,000
City of Escondido $75,000
City of Isleton $22,000
City of Modesto $75,000
City of Richmond $75,000
City of San Diego $75,000TOTAL $547,000
Cities and counties that receive Type 1 funding to assist in creating a cannabis equity assessment, and/or to assist in developing a local cannabis equity program. More information about the allowable uses of the grant funding can be found in the program’s FY 2020-2021 Grant Solicitation.
In addition, ten jurisdictions were selected to receive grant funding that will go straight towards assisting equity applicants and licensees in cities and counties that already have a locally-approved cannabis equity program (a “Type 2” grant). The jurisdictions approved for this type of funding include:
City of Oakland $2,434,712.51
City and County of San Francisco $2,055,841.43
City of Los Angeles $2,030,997.42
City of Sacramento $1,813,612.38
City of Long Beach $1,267,044.26
City of Fresno $1,204,934.25
County of Humboldt $1,055,870.22
County of Lake $888,173.18
City of Palm Springs $869,540.18
County of Mendocino $832,274.17TOTAL $14,453,000
Cities and counties can use Type 2 grant funding to pay for things that will directly help persons who qualify as an “equity applicant” or “equity licensee” in that jurisdiction, such as low/no-interest loans or grants, reduced or waived licensing fees, and technical assistance (including one-on-one training and consulting) to help equity operators through the licensing process.
We look forward to the possibility of collaborating with Sonoma County on development of a cannabis equity program that is uniquely tailored to the local community. We encouraged the City of Santa Rosa, which is home to several cannabis businesses but does not yet have a cannabis equity program approved or in the works, to apply for cannabis equity grant funding, but we were told that the city was only considering it. We hope that Santa Rosa will reconsider this position and submit an application during the next round of funding now that they’ve seen the County be successful.
This is a developing story; stay tuned for more updates.
This information is provided as a public educational service and is not intended as legal advice. For specific questions regarding cannabis laws and regulations in California, please contact the Law Offices of Omar Figueroa at 707-829-0215 or info@omarfigueroa.com to schedule a confidential legal consultation.