The California Department of Cannabis Control (DCC) is launching the Local Jurisdiction Retail Access Grant, a first-of-its-kind program that provides local jurisdictions with resources to expand access to regulated cannabis products. The program prioritizes areas where national surveys indicate high cannabis consumption but little to no access to legal cannabis retail.
Prioritizing Best Practices for Equity Operators
The retail access grant program seeks to incentivize local best practices by prioritizing programs that support equity operators and utilize existing licensing and permitting practices. This approach helps reduce illicit market activity while providing consumers access to legal retail stores and regulated products.
Encouraging Legal Retail Operations
According to DCC Director Nicole Elliott, “Expanding access to California’s retail cannabis market is an essential step towards protecting consumer safety and supporting a balanced market. The retail access grant program ultimately seeks to encourage legal retail operations in areas where existing consumers do not have convenient access to regulated cannabis.”
Application Requirements and Timeline
To apply for the grant, local governments must meet the program’s requirements and show they can create pathways to retail licensure. The DCC released guidelines outlining the application process and is accepting questions until February 24, 2023. The application period for Phase I funding begins on March 10, 2023, and ends on April 28, 2023.
Focusing on Underserved Areas
The program is designed to provide much-needed assistance to cities and counties as they partner with the state to ensure consumers have sufficient access to regulated cannabis. Over 60% of California jurisdictions do not offer local retail licensing for cannabis, making it difficult for consumers to access regulated cannabis products.
Grant Prioritization and Funding
Of the 33 counties in California that currently do not offer cannabis licenses, nine have significant rates of cannabis consumption but only one or zero licensed cannabis retailers. In four of these counties – Butte, Glenn, Madera, and Sutter – there are no licensed cannabis retailers. These counties and the cities within them will receive priority review should they apply for a grant and implement a permitting program.
The $20 million grant program will initially award up to $10 million in grants by June 20, 2023. After June 30, 2023, an additional $10 million will be available to previous awardees as they issue licenses. Funding can be used for supporting equity applicants and licensees, environmental reviews, permitting expenses, and personnel costs.
Reducing Illicit Market Activity
The lack of access to California’s legal cannabis marketplace threatens consumer safety and perpetuates the illegal market. By financially supporting the creation of pathways to retail licensure and creating incentives to ensure consumers have access to legal retail, these grant funds are intended to help reduce illicit market activity and provide consumers with access to legal retail stores and regulated products.
