Second Chances

Oakland is taking aggressive steps to abate the painfully obvious racial disparity that can be seen within the city’s cannabis industry. The new law requires that half of all permits for cannabis businesses be given to Oakland residents who have either been convicted of a cannabis crime or live in a disadvantaged area where cannabis consumers are targeted.

The concept is relatively similar to affirmative action we see in universities and schools, but is applied to the cannabis industry. For many Oakland residents who have been excluded from participating in the cannabis industry for one reason or another, this progressive new program is a welcomed change.

“San Francisco legislators recently directed their staff to conduct an equity analysis and return with recommendations similar to Oakland’s race and equity analysis earlier this year.”

On March 28, the Oakland City Council unanimously approved recommended changes introduced by the Department of Race & Equity, but the program has taken off to a slow start. On July 21, the program organizers announced that only 81 people have applied for permits with 35 equity permits, but only 10 had secured a business location. On August 4, the Special Permits Division issued a Request for Qualifications (RFQ) for a consultant to assist applicants through the Equity Permit Program to help simplify the system.

Equity permits will be granted to disadvantaged applicants during the first phase and become available for non-equity applicants in the second phase, which begins after $3.4 million in cannabis tax revenue has been collected. This way, city officials can be sure that disadvantaged applicants are pushed to the front of the line. Former felons in Oakland are able to qualify for a permit. Those who have lived in disadvantaged areas of the city for 10 out of the past 20 years qualify.

Greg Minor is Assistant to the City Administrator and works hands-on with the city’s Equity Permit Program applications. Minor told CULTURE that the program has received about 130 applications as of late August.

In order to qualify as an Equity applicant, Minor said, applicants must be “an Oakland resident who has an annual income at or less than 80 percent of the Oakland Average Medium Income (AMI) and either has a cannabis conviction out of Oakland or has lived for 10 of the last 20 years in police beats that experienced a disproportionately higher amount of law enforcement with respect to cannabis.” For instance, the 2016 AMI threshold is $52,650 for a one-person household and $60,150 for a two-person household.

Applicants must also pass a LiveScan background check, provide extensive documentation and pass a series of vigorous inspections, to name a few hurdles.

The trend is quickly picking up in other major California cities. “San Francisco legislators recently directed their staff to conduct an equity analysis and return with recommendations similar to Oakland’s race and equity analysis earlier this year,” Minor added. “Additionally, we have received a number of inquiries from the city of Los Angeles as they look to establish a similar equitable foundation to their cannabis permitting. I have also heard from advocates interested in implementing similar programs in Sacramento.”

Oakland is embracing its citizens who were formerly labeled criminals for past cannabis charges, as well as shoes who are sonsidered to be disadvantaged and deserve a better chance at breaking into the cannabis industry. If anyone knows how to efficiently dispense, sell and process cannabis, it’s them. Other cities will surely follow Oakland’s inclusive example.