One of many problems the still-growing U.S. cannabis industry must face surrounds accessibility. In California alone, nearly two-thirds of the state’s cities and counties do not allow the establishment of any regulated cannabis retailers within their jurisdictions. While it’s surely a much larger conversation, the Golden State this week announced actions aimed at improving consumer access to regulated cannabis.
The Department of Cannabis Control (DCC) is launching its Local Jurisdiction Retail Access Grant, the first of its kind in the nation, which will provide local jurisdictions with resources to expand access to regulated cannabis products to underserved areas, according to a press release.
Up to $20 million in total funding is available through the grant to localities across the state, giving priority where surveys show a disconnect between the availability of licensed retailers and rates of cannabis use among adults. The program aims to incentivize local best practices by prioritizing programs that support equity operators and utilize existing licensing and permitting practices.
The release notes some of the larger implications surrounding the lack of access to retail cannabis, namely the threats to consumer safety and potential to perpetuate the illicit market. With the help of this grant program and ensuring California consumers have access to legal retail cannabis, these funds are meant to help reduce illicit market activity while providing consumers with better access to regulated products.
DCC Director Nicole Elliott said that expanding accessibility within California retail cannabis is an important step in 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,” Elliott added.
According to the DCC, more than 60% of California jurisdictions do not offer local retail licensing for cannabis. Of the 33 counties in California that currently don’t offer cannabis licenses, nine counties have substantial cannabis consumption rates even though they only have one or zero licensed cannabis retailers. (The DCC notes that four of nine of those counties have no licensed cannabis retailers — Butte, Glenn, Madera and Sutter.)
“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,” the DCC said.
Localities that have already opted out of allowing cannabis retailers and do not plan to license them are ineligible for the grants, and jurisdictions with licensing programs and where retailers have already been approved also do not qualify.
Funding will be distributed in two phases. The first phase provides funding to support local jurisdictions in developing and implementing local cannabis retailer licensing programs, with up to $10 million in funding available and awards to be announced by June 20, 2023. The second phase awards additional funding after the local jurisdiction issues cannabis retailer permits, with at least $10 million in total funding available and awards to be announced beginning on or after June 30, 2023.
“Additional funding will be awarded in both phases of this grant program for local governments that adopt equity programs and issue cannabis retailer licenses to equity businesses,” according to the California government website.
Cities and counties can apply for the licensing grants from March 10 to April 28.
The news comes in tandem with another announcement, as California leaders recently awarded $15 million in grants to support local equity efforts in the cannabis industry. It’s part of California’s efforts to use tax revenue from cannabis sales to fund new and existing equity programs, meant to uplift communities that have been disproportionately impacted by the War on Drugs.
The state’s industry is in the midst of a number of changes, including the pursuit of interstate commerce. California officials recently sought a formal opinion from the California attorney general’s office, regarding whether commerce between states would put California at risk of federal enforcement action.
