Arizona

Timing: December 2021

Licenses Available: 26 vertically integrated licenses

Qualification Info:

Must have a certificate of completion of the Department-provided educational training course focusing on:

• • State laws and regulations related to the operation of a marijuana establishment;
  • Obtaining financial backing; and
  • Specific requirements in the Social Equity Rules; and

Must meet 3 of the following 4 criteria:

• Had a household income in at least three of the previous five years that, for the respective year, was less than 400% of the federal poverty level, which is the annual household income for a household of a particular size that is specified in the poverty guidelines updated annually in the Federal Register by the U.S. Department of Health and Human Services;
• Has been adversely affected by the enforcement of previous marijuana laws because the individual:
• Is eligible for and has petitioned for expungement pursuant to A.R.S. 36-2862; or
• Was convicted in Arizona of a violation of federal or state law related to marijuana or marijuana paraphernalia, and does not have an excluded felony offense (see below);
• Has been adversely affected by the enforcement of previous marijuana laws because the individual is related, as one of the following, to another individual who was convicted in Arizona of a violation of federal or state laws related to marijuana or marijuana paraphernalia:
• Spouse;
• Surviving spouse, as defined in A.A.C. R9-1-301:
• Parent, as defined in A.A.C. R9-1-301;
• Child;
• Sibling; or
• Legal guardian, as defined in A.A.C. R9-1-301; or
• Has a physical address and has lived for at least three of the previous five years at the physical address, in a community that has been identified by the Department as being disproportionately affected by the enforcement of Arizona’s previous marijuana laws.

California (cities)

Coachella, CA

Timeline:  ROLLING

Licenses available

Cultivation, Manufacturing, Distribution, Retail (storefront and non-storefront), and microbusiness

Ownership 

Business entity applicants must satisfy one of the following ownership requirements: 

1) A cannabis business with not less than 51% ownership by individuals meeting Classification 1 or 2 criteria that their business resides within the City of Coachella. If no such individual exists, individuals meeting Classification 1 or 2 criteria from other applicable areas may be utilized.

2) A Cannabis Incubator Business or a Cannabis Social Enterprise with not less than 51% ownership by individuals meeting Classification 1 or 2 criteria.

Qualifications

Individuals: An individual that is eligible to participate in the Program must be lawfully able to work in the United States and be Twenty-One (21) years of age or older. They must satisfy a Classification below as well:

1) A current or former resident of the City of Coachella who previously resided or currently resides in a low-income household and was either: 

• arrested or convicted for a cannabis related crime in the City of Coachella between the years of 1980 and 2011; or is 
• an immediate family member of an individual in subsection a of Classification 1 or Classification 2.

2) A current or former resident of the City of Coachella who has lived in a low-income household for at least five (5) years, between the years of 1908 and 2018. Annual family income must be at or below 80 percent of the Area Median Income (AMI) and net worth below $250,000.

Businesses: A cannabis business that is eligible to participate must provide a description of a statutory entity or business form that will serve as the legal structure for the applicant and a copy of its formation and organizing documents, including, but not limited to, articles of incorporation, certificate of amendment, statement of information, articles of association, bylaws, partnership agreement, operating agreement and fictitious business name statement. They must satisfy a Classification below as well:

1) A cannabis business with not less than 51% ownership by individuals meeting Classification 1 or 2 criteria that their business resides within the City of Coachella. If no such individual exists, individuals meeting Classification 1 or 2 criteria from other applicable areas may be utilized.

2) A Cannabis Incubator Business or a Cannabis Social Enterprise with not less than 51% ownership by individuals meeting Classification 1 or 2 criteria.

Incentives/Benefits

“General program benefits may include but are not limited to: 

Business plan development, business mentoring, assistance securing capital, business needs assessment, loan readiness assessment, market assessment, data and research strategies and support, assistance with establishing a legal entity, assistance with criminal records expungement, lease negotiation assistance, small business legal considerations, mentoring, fiscal management, marketing/social media, technical training, employee training, and regulatory compliance. The City will also work with local partners and stakeholders to develop a workforce development educational program to assist with a creation of a well-trained, qualified and diverse workforce, including transitional workers. A program participant shall be entitled to receive the following benefits based on eligibility:

– All business support services offered under the program;

– The City will provide priority processing of the participant’s cannabis related business and conditional use permit;

– The City will waive all fees associated with participants cannabis related business permit;

– The City shall provide assistance with State and City regulatory compliance.

Humboldt County, CA

Timeline:  ROLLING

Licenses available

Cultivation, Manufacturing, Distribution, Distribution-Transport, Retail (storefront and non-storefront), microbusiness, testing labs

Qualifications

Those who meet any of the following qualifications shall therefore meet  the qualifications for Humboldt County’s Local Equity program:

1) Any individual and/or entity that has obtained or applied for a permit (either temporary or permanent), and the permit is for a business located in an area in 

Humboldt County with a poverty rate of 17% or above.

2) Have engaged in or are currently engaged in small-scale cultivation of cannabis on property in Humboldt County owned, leased, or with the express permission of the  owner, with a cultivation area less than 10,000 square feet;

3) Any woman, person of color, or LGBTQ individual who has or worked in, or currently works in the cannabis industry in Humboldt County;

4) Any individual who has obtained or applied for a cannabis permit in Humboldt  County, or who has worked in or currently works in the cannabis industry, and was  arrested and/or convicted of a non-violent cannabis-related offense, or was subject  to asset forfeiture arising from a cannabis-related event;

5) Are a person who experienced sexual assault, exploitation, domestic violence, and/or human trafficking while participating in the cannabis industry.

6) Have become homeless or suffered a loss of housing as a result of marijuana enforcement.

For those who do not meet qualifications set forth above, individuals and/or entities can become eligible for the Humboldt County LEP if they meet three (3) of the following conditions: 

1) Be one of the following:

• An individual permitted for, seeking a permit for or employment in a Humboldt County permitted cannabis business.
• A board member of a non-profit cannabis business.
• Have a membership interest in a cannabis business formed as a cooperative.

2) Have resided in Humboldt County for at least five years during the period 1971 – 2016.

3) Have obtained or applied for, or intend to apply for, a permit or zoning clearance for commercial cannabis activities in Humboldt County.

4) Have lived within a 5-mile radius of the location of raids conducted by the Campaign Against Marijuana Planting (CAMP) program.

5) Household income below the California poverty level.

6) Have a parent, sibling or child who was arrested for or convicted of the sale, possession, use, manufacture or cultivation of cannabis (including as a juvenile).

7) Can reasonably demonstrate that, on the basis of equity, the applicant was adversely impacted as a result of the criminalization of cannabis (i.e. the War on Drugs).

Incentives/Benefits

Services to be provided by the Humboldt County Cannabis Equity Program may include, depending on 

need and the availability of funds from grants or other sources:

1) Tiered fees or Waiver of fees for Application Assistance Meetings of up to four hours, with the Cannabis Services Division of the Department of Planning and Building.

2) Cannabis and Small Business Development Assistance from the Economic Development Division, including business planning, loan application preparation, site location services, human resource management, capital procurement services, bookkeeping and accounting practices and systems, etc.

3) Deferral of payment of Application Fees for Cannabis Activity Zoning Clearance Certificates or Special Permit or Use Permit for a period not to exceed three (3) years.

4) Technical Assistance for the formation and administration of Road Maintenance Associations for public and private road networks providing access to cannabis activity operations by eligible cannabis equity program applicants or licensees, where such road networks may adversely impact watersheds providing habitat for threatened or endangered species.

5) Waiver or deferral of fees for training and certification by the Agricultural Commissioner’s office for Weights and Measures and Pesticide Applicators requirements or certification of scales used in cannabis licensed businesses in Humboldt County.

6) Technical Assistance for the formation of cannabis cooperative associations pursuant to Business and Professions Code sections 26220 -26231.2 the majority membership of which is composed of cannabis equity program applicants or licensees.

7) Loans or Grants for purposes of assuring compliance with regulatory requirements of local or state permits or licenses that mitigate adverse environmental effects of cannabis cultivation or other activities including, but not limited to:

• Water storage for irrigation during forbearance periods of surface water diversion required by state or local regulations;
• Remediation and relocation of cannabis facilities located within streamside setbacks required by state or local regulation;
• Installation of solar electrical systems to replace diesel or gasoline generator power for off-grid cannabis facilities where connecting to the grid is economically infeasible.

8) Employment skill training for eligible equity participants employed or seeking employment in licensed cannabis operations in Humboldt County

Long Beach, CA

Timing:  Now accepting all license types except storefront and delivery, but there is currently a study on releasing 8 more social equity retail licenses and allowing delivery

Licenses available

Cultivation, manufacturing, distribution, lab testing

Ownership

To qualify as an Equity Business, Equity Applicants must have a minimum of 51% ownership of the business applying for an Adult-Use Cannabis Business License. The requirement can be met by one or multiple Equity Applicants collectively.

Qualifications

To qualify as an Equity Applicant, you must meet the following eligibility criteria:

1) Apply as a person, not a company

2) In the last year, your annual family income was at or below 80% Los Angeles-Long Beach-Glendale (LA County) Area Median Income (AMI). Your annual family income is adjusted for family size. See information on income limits.

3) Have a net worth below $250,000

4) Satisfy at least 1 of the following 3 criteria:

• Have lived in a Long Beach census tract for a minimum of 3 years where at least 51% of current residents have a household income at or below 80% of the Los Angeles Area Median Income. Check our interactive map.
• Was arrested or convicted for a crime relating to the sale, possession, use, or cultivation of cannabis in the City of Long Beach prior to November 8, 2016 that could have been prosecuted as a misdemeanor or citation under California law.
• Is a Long Beach resident currently receiving unemployment benefits.  

Incentives/Benefits

Benefits include:

1) Access to application workshops;

2) Fee waivers;

3) Direct grants;

4) Expedited application and facility plan check review;

5) Cultivation tax deferrals;

6) Direct Technical Assistance (Coming Soon).”

Los Angeles, CA

Timing: Delivery – open now Retail – lottery system, unclear when phase 3, round 2 will happen

Licenses available

Testing, Distribution, non-volatile manufacturing, and delivery applications are currently being accepted, however delivery and retail is limited to Tier 1 and 2 Social Equity applicants until Jan 1, 2025.  

Ownership

A Tier 1 Social Equity Individual Applicant shall own no less than a 51 % Equity Share in the Person to whom the License is issued.  A Tier 2 Social Equity Individual Applicant shall own no less than a 33 1/3 % Equity Share in the Person to whom the License issued.

Qualifications

LA’s social equity program allows for three different qualifications of applicants, Tier 1 Social Equity Individual Applicant, Tier 2 Social Equity Individual Applicant, or Tier 3 Applicant. 

To qualify for Tier 1 Social Equity Individual Applicant, one must:

1) be a low income resident of LA with a prior cannabis arrest or conviction in the state of california; OR

2) be a low income resident of LA who lived in a disproportionate impact area for a minimum of 5 years.

To qualify for Tier 2 Social Equity Applicant, one must:

1) be a low income resident of LA who lived in a disproportionate impact area for a minimum of 5 years; OR

2) lived for a minimum of 10 years cumulative residency in a disproportionately impacted area

Tier 3 applicants are individuals who do not meet the criteria of a tier 1 or 2 social equity applicant. A Tier 3 Applicant shall enter into a Social Equity Agreement with the City to provide to a Social Equity Individual Applicant for a period of three years:  

1) Ancillary Business Costs; 

2) Property; and 

3) Education and Training. 

Benefits include: 

• Priority processing
• Fee deferral program
• Business, licensing and compliance assistance
• Financial grant program 
• Ancillary business costs
• Education and training
• Property 

Accelerator/Incubator Program

Tier 3 licensees must enter into a social equity agreement with the City to support a Social Equity individual Applicant for 3 years by providing support for ancillary business costs, education and training, and property.

Additional Notes

In April of 2021, the City of Los Angeles established the Social Equity Entrepreneur Development Grant Program (SEED) Grant Program). The Rules and Regulations for the SEED Grant Program can be found here. The SEED Grant Program utilizes funding from the Cannabis Equity Grant for Local Jurisdictions (CEG Grant) to provide financial assistance to verified Social Equity Individual Applicants. To date, the City of Los Angeles has dedicated $6 million towards the SEED Grant Program through funds made available through the 2019 and 2020 California CEG Grant awards.

Oakland, CA

Timing:  Rolling

Licenses available

Cultivators, delivery-only dispensaries, distributors, testing laboratories, manufacturers and transporters may apply for cannabis permits. There is no limit on the number of permits that can be issued for those activities. However, at least half of all permits must be issued to Equity applicant

Qualifications

To qualify for Oakland’s social equity program, applicants must:

1) be a resident of the the City of Oakland; AND

2) have an annual income at or less than 80% AMI; AND

3) lives or lived in ungentrified police beats with high rates of arrests/convictions for at least 10 of the last twenty years OR have been arrested after November 5, 1996 and convicted of a cannabis offense committed in the city

Benefits include: 

– industry specific technical assistance

– business ownership technical assistance

– no interest business start up loans

– waivers from City permitting fees

Expungement Opportunities

Proposition 64 also allows those with marijuana convictions that occurred prior to Proposition 64 to ask the court to dismiss and seal (expunge) or reduce their conviction to a lesser offense. Those previously convicted of Marijuana Possession under Penal Code section 11357, Marijuana Cultivation under Penal Code section 11358, Possession of Marijuana for Sale under Penal Code section 11359, or Transportation of Marijuana for Sale under Penal Code section 11360 can expunge their conviction or reduce their offense to a lower offense (misdemeanor or infraction).

Accelerator/Incubator Program

The City’s cannabis regulations reward General applicants the provide free space and “incubate” Equity applicants. The General applicant must provide an Equity applicant with three years free rent and have access to a minimum of 1000 square feet to conduct its business operations and any required security measures. This space may be located EITHER at the General applicant’s place of business or in another location in zones approved for cannabis activity.

Rio Dell, CA

Timing:  ROLLING

Licenses available

Cultivation, Manufacturing, Distribution, Retail (storefront and non-storefront), and microbusiness

Ownership

Social equity applicants must be one of the following:

• An individual licensed for, seeking a license for, or employment in a Rio Dell licensed cannabis business.
• The business owner.
• Own at least 40% of the business and be the CEO.
• Own at least 51% of the business.
• A board member of a non‐profit cannabis business where most of the board also qualify as equity applicants.
• Have a membership interest in a cannabis business formed as a cooperative per Business and Profession Code Section 26220 ‐ 26231.2.
• An employee of, or seeking employment with, a Rio Dell licensed cannabis business.

Qualifications

Those applying for, or who are licensee of, the Cannabis Local Equity Program shall:

1) Apply as a person, not an entity.

2) Be one of the following:

• An individual licensed for, seeking a license for, or employment in a Rio Dell licensed cannabis business.
• The business owner.
• Own at least 40% of the business and be the CEO.
• Own at least 51% of the business.
• A board member of a non‐profit cannabis business where most of the board also qualify as equity applicants.
• Have a membership interest in a cannabis business formed as a cooperative per Business and Profession Code Section 26220 ‐ 26231.2.
• An employee of, or seeking employment with, a Rio Dell licensed cannabis business.

3) Have resided in Humboldt County at least five years during the period 1971 – 2016.

4) Have obtained or applied for a permit for, be employed in or seeking employment in commercial cannabis activities in the City of Rio Dell, or shall apply for a permit for commercial cannabis activities from the City, or shall seek employment in connection with the services and assistance to be provided by the Rio Dell Cannabis Equity Program.

5) Meet at least one of the following equity conditions:

• Household income below 80% of median for Humboldt County in year submitting CLEP application.Cannabis Local Equity Program Manual March 2019
• Have been arrested for or convicted of the sale, possession, use, manufacture or cultivation of cannabis (including as a juvenile), or been subject to asset forfeiture from 1971 to 2015;
• Have a parent, sibling or child who was arrested for or convicted of the sale, possession, use, manufacture or cultivation of cannabis(including as a juvenile) from 1971 to 2015;
• Have lived within a five mile radius of the location of raids conducted by the Campaign Against Marijuana Planting (CAMP) program during the period from 1971 to 2015;
• Have engaged in cultivation of cannabis on property in Humboldt County owned, leased, or with the express permission of the owner, with a cultivation area less than 10,000 squarefeet for a period of at least 2 years during the period from 1971 ‐ 2015.
•  Be a member of an ethnic, racial or other disadvantaged community, including but not limited to LGBTQ persons.
• Have become homeless or suffered a loss of housing as a result of marijuana enforcement during the period from 1971 – 2015

Incentives/Benefits

Services to be provided by the Cannabis Equity Program may include, depending on need and the availability of funds from grants or other sources:

1)  Waiver of fees for Application Assistance Meetings of up to two (2) hours;

2) Technical Assistance from the City, including assistance with application preparation, Plan of Operations preparation, Site Plan preparation, etc., not to exceed eight (8) hours;

3)  Deferral of payment of Application Fees for Cannabis Activities for a period not to exceed two (2) years;

4)  Reduction or deferral of local cannabis excise taxes as approved by the City Council.

5) Waiver or deferral of fees for training and certification by the Agricultural Commissioner’s office for Weights and Measures and Pesticide Applicator Requirements or certification of scales used in cannabis licensed businesses in Humboldt County;

6) Any other technical or financial assistance as deemed appropriate by the City Council

Sacramento, CA

Timing:  Only accepting a limited number of delivery licenses, and no cap for distribution, microbusiness, manufacturing, and testing labs licenses

Licenses available

The square footage for cultivation and distribution in the Southern Industrial area of District 6 is capped at 2.5 million sq. ft.  As of April 15, 2021, the square footage cap has been reached. There are also no more retail storefront licenses available. Delivery (by either a storefront and a non-storefront dispensary) in the Southern Industrial area is also limited to 50 permits until the cap is lifted. As of April 29, 2021, there were only 15 permits available. Otherwise, there is no cap to the number of permits the City will issue. However, this can change due to a number of factors, which may include the availability of land or properties, or the number of existing cannabis businesses in the City. 

Ownership

Business entities and Cannabis Social Enterprises must have at least 51% ownership by Classification 1 & 2 to be considered for the CORE program

Qualifications

To qualify for Sacramento’s Cannabis Opportunity Reinvestment and Equity (CORE) program, applicants must qualify under one of the five classifications below. Classifications 1 and 2 are for individuals, while Classifications 3, 4 and 5 are for businesses.

1) lives or have lived in a low-income household in Sacramento AND:

• Have been arrested in Sacramento for cannabis–related crime between 1980-2011 or
• An immediate family member who meets the description above

2) Lived in a low income household in the following zip codes for 5 consecutive years between 1980 and 2011: 95811, 95815, 95817, 95820, 95823, 95824, 95826, 95828, 95818, 95838 and 95832.

Business entity applicants:

3) Businesses with no less than 51% ownership by Classifications 1& 2 individuals.

4) CORE Program Incubator – a cannabis business which supports CORE participants as a condition for receiving priority processing. More details in the Accelerator program column.

5) Cannabis Social Enterprise with no less then 51% ownership by Classifications 1& 2 individuals.

Incentives/Benefits

Benefits include: 

• Expungement of criminal records
• Priority conditional use and business oeprations permits
• Processing and fee waiver/deferral
• Other benefits TBD

Additional Notes

CORE Incubator means a cannabis business which as a condition for receiving priority processing, either:

1.Hosts a participant; 30% of its workforce are Classification 1 or 2 eligible participants, measured by hours worked; and contracts no less than 51% of its cannabis products or services and ancillary business support with eligible participants; or

1. 2. Is a shared manufacturing cannabis business and donates at least 10% of its hours of operation to allow participant(s) to utilize 100% of its business’ floor space and equipment; or
   3. Is a cannabis business that sells, gives or otherwise transfers no less than a 33% equity share in the CORE Incubator’s cannabis business to eligible CORE participants or participants; 30% of its workforce be Classification 1 or 2 eligible; and contracts no less than 30% of its cannabis and ancillary business with Classification 1 or 2 eligible participants.

CORE Incubators shall host, donate to, employ, contract with, sell, give, or transfer to participants that reside within the city district in which the incubator sits. If no such participants exist, incubators shall utilize participants from other applicable areas.

San Francisco, CA

Timing: ROLLING

Licenses available

Microbusiness (retail, manufacturing, cultivation, distribution), Retail storefront, Retail storefront with consumption lounge, Delivery, Cultivation, Manufacturing, Distribution, Testing lab

Ownership

Social equity applicants must be one of the following:

• The business owner
• Own at least 40% of the business and be the CEO
• Own at least 51% of the business
• A board member of a non-profit cannabis business where most of the board also qualify as Equity Applicants
• An individual with a membership interest in a cannabis business formed as a cooperative

Qualifications

To qualify for SF’s social equity program, applicants must: 

1) be a natural person

2) have an asset total that does not exceed the asset limits established by the Director

3) Be one of the following:

• The business owner
• Own at least 40% of the business and be the CEO
• Own at least 51% of the business
• A board member of a non-profit cannabis business where most of the board also qualify as Equity Applicants
• An individual with a membership interest in a cannabis business formed as a cooperative

Applicants must meet 3 or more of the following criteria:

1) Is a member of a household with annual income at or less than 80% SF median income

2) Was arrested for, convicted of, or ajudged to be a ward of the juvenile court between 1971-2016 for a cannabis related offense

3) Since 1995 has experienced eviction, foreclosure, or revocation of housing subsidy in SF

4) Has a parent, sibling, or child who was arrested for, convicted of or adjudged to be a ward of the juvenile court between 1971-2016 for a cannabis related offense

5) Attended school under the juristiction of the SF unified school district for 5 years either consecutively or in total between 1971-2016

6) Between 1971-2016 lived for at least 5 years, either consecutively or in total, in SF census tracts where at least 17% of housholds had incomes at or below the federal poverty level

Incentives/Benefits

Priority permit processing, waived permit fee

San Jose, CA

Timing:  ROLLING

Licenses available

Manufacturing, distribution, testing (NO dispensary or cultivation)

Ownership

To be eligible for the Equity Assistance Program as an equity business owner, an individual shall satisfy the social equity employee criteria and the individual shall also have a minimum of fifty-one percent (51 %) ownership of the entity applying for a Cannabis Business Registration.

Qualifications

To be eligible for the Equity Assistance Program as an equity employee, an individual shall satisfy the following criteria:

1) Be a natural person; 

2) In the last year, have had an annual family income at or below eighty percent (80%) of the Area Median Income (AMI) for Santa Clara County adjusted for family size; 

3) The individual satisfies at least one of the following criteria:

• Has lived in San José for at least four years in a census tract where at least fifty-one percent (51%) of current residents have a household income at or below eight percent (80%) of the AMI for Santa Clara County; 
• Has attended a San José public school, or schools, for at least for years located in a census tract where at least fifty-one (51%) of current residents have a household income at or below 80% of the AMI for Santa Clara County for at least four years; 
• Was arrested or convicted for a crime relating to the sale, possession, use, or cultivation of cannabis, excluding those offenses which would be disqualifying for cannabis licensure under current State law; 
• Had a parent, guardian, child, or sibling convicted of a crime relating to the sale, possession, use, or cultivation of cannabis in the City of San José, excluding those offenses which would be disqualifying for cannabis licensure under current State law.
• To be eligible for the Equity Assistance Program as an equity business owner, an individual shall satisfy the criteria in subsection A above and the individual shall also have a minimum of fifty-one percent (51 %) ownership of the entity applying for a Cannabis Business Registration.

Incentives/Benefits

Individuals applying as equity employees at a Cannabis Business or applying for a Cannabis Business Registration as an equity business owner applicant, may be eligible to receive technical assistance, training for prospective employees, and other services dependent upon funding.