The California Department of Cannabis Control announces the availability of $20 million in grant funding for the Cannabis Local Jurisdiction Retail Access Grant.
Donor Name: California Department of Cannabis Control
State: California
County: Selected Counties
Type of Grant: Grant
Deadline: 04/28/2023
Size of the Grant: $20 million
Details:
This program provides funding to local governments to support the development and implementation of a local cannabis retailer licensing program.
Funding Priorities
This grant program prioritizes funding to local jurisdictions that:
- Propose to assist cannabis equity businesses
- Address gaps in consumer access to safe and regulated cannabis
- Plan to permit cannabis retailers through existing business permitting processes
- Local jurisdictions that meet these criteria will be eligible for priority points. Applications with priority points will be processed first.
Priority Area: Equity licensing opportunities
DCC is committed to providing equity to communities harmed by past cannabis criminalization through local pathways to licensure and business success. Local jurisdictions that submit a plan to incorporate equity into their permitting process will be eligible for priority review.
Priority Area: Gaps in consumer access to legal cannabis
This grant program aims to provide consumers with better access to regulated, tested cannabis and reducing the need for consumers to turn to the illicit market. In 18 counties across the state, the proportion of licensed cannabis retail outlets is low compared to its share of consumer consumption:
- Amador County, Butte County, Contra Costa County, Fresno County, Glenn County, Kern County, Lassen County, Madera County, Orange County, Placer County, San Benito County, San Diego County, San Joaquin County, San Mateo County, Santa Clara County, Sutter County, Tehama County, Yuba County
Because cannabis consumers within these areas would benefit from expanded access to licensed cannabis, these counties – and the cities within them – will receive priority review should they apply for a grant and implement a permitting program.
Priority area: Existing business permitting pathways
The experience of local jurisdictions that have proactively regulated cannabis has shown that:
- Establishing cannabis-specific licensing programs can be resource and time intensive
- Utilizing existing permitting and review pathways can simplify cannabis permitting processes
To support local jurisdictions in quickly developing cannabis retailer licensing programs, priority review will be awarded to jurisdictions that:
- Propose to license cannabis businesses through existing business permitting process already in existence for non-cannabis businesses
- Propose to license only cannabis retail businesses that are eligible for categorical exemption under the California Environmental Quality Act (CEQA)
Funding Rounds
This grant program will provide $20 million in funding, distributed in two phases:
- Phase I provides funding to support local jurisdictions in the development and implementation of a local cannabis retailer licensing program. Up to $10 million in total funding is available, and awards will be announced by June 20, 2023.
- Phase II awards additional funding after the local jurisdiction issues cannabis retailer permits. At least $10 million in total funding is available; awards will be made for each cannabis retailer permit issued, beginning on or after June 30, 2023.
Funding Information
The Retail Access Grant provides local governments with resources to develop and implement cannabis retailer licensing programs. Up to $20 million total funding is available, distributed in two phases.
- A local jurisdiction (city or county) is eligible for funding if it both:
- Does not currently have a cannabis retail licensing program, and
- Has a plan to develop and implement a cannabis retail licensing program
- Funding can be used for:
- Support of equity applicants and licensees
- Environmental reviews
- Permitting expenses
- Personnel costs
- By providing this assistance to cities and counties, the Retail Access Grant aims to:
- Provide consumers with reliable access to regulated, tested cannabis
- Reduce demand in the illicit market
- Establish enough cannabis retail stores statewide to meet existing consumer demand
Eligible Uses and Costs
Local jurisdictions must use funding to support the development and implementation of a cannabis licensing program, or for programs or initiatives that directly support cannabis equity businesses.
Eligible costs include, but are not limited, to the following:
- Salaries and benefits for local government staff directly involved in the development or implementation of the cannabis retailer licensing program
- Expenses to develop or implement application processes for cannabis retailer licenses, including software costs
- Expenses to conduct stakeholder outreach or community engagement to inform the development of the cannabis retailer licensing program
- Local government staff costs or other professional preparation of CEQA-compliant environmental documents for cannabis retailers
- Technical support for applicants and licensees
- Other uses that further the intent of the program, as determined by DCC
Additional grant funding provided in either Phase I or II for adoption of an equity program or issuance of an equity license must be used for the benefit of the cannabis equity program or cannabis equity businesses. Eligible uses for equity bonus funding include:
- Fee waivers, tax relief, or similar direct-financial assistance for equity applicant and licensees
- Development of infrastructure to support and/or prioritize equity applicants in the permitting process
- Technical assistance for equity applicants or licensees, including, but not limited to:
- State or local license application assistance
- Assistance with regulatory compliance
- Other uses that support the success of equity applicants or licensees, as determined by DCC
Eligible Applicants
Grant funds are available only to eligible local jurisdictions (city, county, or city and county) located in California. A local jurisdiction is eligible if, as of February 14, 2023, it:
- Does not have a local cannabis retailer licensing program
- Has a plan to develop and implement a program to issue permits to cannabis retail businesses that establish within its jurisdiction
Jurisdictions that have already begun development of a cannabis retailer licensing program may be eligible if it:
- Has not yet begun accepting permit applications for cannabis retailers
- Has not yet published permit application forms
- Has not yet permitted any cannabis retailers within their jurisdiction
Examples of eligible local jurisdictions
- A local jurisdiction that currently prohibits all commercial cannabis activity but has a plan to develop and implement a program to issue permits to commercial cannabis retail businesses within its jurisdiction.
- A local jurisdiction that has passed a law to allow retail cannabis businesses but has not yet begun accepting permit application forms.
- A county that currently prohibits the establishment of cannabis retailers within the unincorporated area of the county, even if incorporated cities within that county already permit cannabis retailers.
- A city that currently prohibits the establishment of cannabis retailers within its boundaries, even if that city is located within a county that already permits cannabis retailers.
For more information, visit California Department of Cannabis Control.
