State Medical Marijuana Social Equity Plan Comparison

Florida State Equity Provisions

The Governor of Florida signed an update to the state’s medical marijuana laws on

June 23, 2017 in the form of S.8-A, Medical Use of Marijuana, engrossed as Chapter 2017-232.

There are four equity related provisions in this law. The first allocates ten dollars from the fee

for each medical marijuana patient identification card for the express purpose of educating

minorities about medical marijuana use and the impacts of unlawful use.

The second sets

aside one of the ten

new medical marijuana treatment center licenses made available by the

law for a recognized class member of Pigford v. Glickman 185 F.R.D 82 (D.D.C 1999) who is a

member of the Black Farmers and Agriculturists Association-Florida Chapter.

2ii

This provision is

currently being challenged by a Black farmer who is not a member of the Association. A third

provision requires the Department of Health to identify applicants with strong diversity plans

(accounting for minority and veteran access to the industry) to compete for medical marijuana

treatment center licensure.

3iii

And the forth provision requires all applicants for medical

marijuana treatment center licensure to demonstrate involvement of minority persons and

business enterprises or veteran business enterprises in ownership, management, and

employment of the proposed medical marijuana treatment center.

4iv

Renewal applications

must demonstrate the effectiveness of such plans.

Ohio State Equity Provisions

On September 8, 2016 the state of Ohio enacted H.B. 523, now chapter 3796 of the Ohio

Revised Code, authorizing the use of marijuana for medical purposes. The law requires the

Department of Commerce and the Board of Pharmacy to, among other things, issue not less

than 15 percent of medical marijuana cultivator, processor, laboratory, and retail licenses to

members of the following economically disadvantaged groups: Blacks or African Americans;

American Indians; Hispanics or Latinos; and Asians.

6,7

If an insufficient number of eligible

applicants meeting these requirements apply for licensure, the department and board may

issues licenses to general applicants according to usual procedures. The law’s distinct race

benchmark raises constitutional questions, but so far has not been challenged in court.

Pennsylvania State Equity Provisions

Pennsylvania’s Act 16, establishing a medical marijuana program, became effective on

April 17, 2016. As part of the state’s intent to promote diversity and the participation of diverse

groups in the marijuana industry the law contains a number of equity provisions related to

diversity goals. For example, the Department of Health is required to adopt policies that ensure

equal opportunity for diverse groups in permitting, and that promote equitable access to the

workforce for diverse individuals.

Accordingly, the Department of Health must conduct

outreach to diverse groups,

provide notice of participation opportunities on its website,

include language in applications that encourages applicants to contract with diverse groups,

An additional four licenses will become available for every 100,000 registered marijuana patients in the state.

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and submit annual reports detailing the participation level by percentage of diverse groups and

a summary of ways diverse groups are utilized by permittees.

These ends are primarily

achieved through the Department’s application scoring system which allocates a possible 100

points for each applicant’s diversity plan out of a possible 1000 total application points.

Applicant Diversity Plans must include goals and summaries for achieving diversity in

ownership, management, employment, and contracting with diverse groups, defined as

disadvantaged businesses, minority-owned businesses, women-owned businesses, and service

disabled veteran-owned or veteran-owned small business.

In addition, plans must describe

internal diversity goals, outreach events, mentoring, training, or professional development

provided to diverse groups, workforce percentages, and contract utilization with diverse

groups.

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STATUTORY/REGULATORY REFERENCES

Florida: Section 7(d) of Chapter 2017-232: Applications for identification cards must be submitted on a form

prescribed by the department. The department may charge a reasonable fee associated with the issuance,

replacement, and renewal of identification cards. The department shall allocate $10 of the identification card fee to

the Division of Research at Florida Agricultural and Mechanical University for the purpose of educating minorities

about marijuana for medical use and the impact of the unlawful use of marijuana on minority communities. The

department shall contract with a third-party vendor to issue identification cards. The vendor selected by the

department must have experience performing similar functions for other state agencies.

Florida: Section 8(a)(2b) of Chapter 2017-232: The department shall license as medical marijuana treatment

centers 10 applicants that meet the requirements of this section, under the following parameters: b. As soon as

practicable, but no later than October 3, 2017, the department shall license one applicant that is a recognized class

member of Pigford v. Glickman,185 F.R.D. 82 (D.D.C. 1999), or In Re Black Farmers Litig., 856 F.Supp.2d 1

(D.D.C.2011) and is a member of the Black Farmers and Agriculturalists Association-Florida Chapter. An applicant

licensed under this sub-subparagraph is exempt from the requirements of subparagraphs (b)1. and (b)2.

Florida: Section 8(b) of Chapter 2017-232: The department shall identify applicants with strong diversity plans

reflecting this state’s commitment to diversity and implement training programs and other educational programs

to enable minority persons and minority business enterprises, as defined in s. 288.703, and veteran business

enterprises, as defined in s.295.187, to compete for medical marijuana treatment center licensure and contracts.

Subject to the requirements in subparagraphs (a)2.-4., the department shall issue a license to an applicant if the

applicant meets the requirements of this section and pays the initial application fee.

Florida: Section 8(b)(10) of Chapter 2017-232: An applicant for licensure as a medical marijuana treatment must

demonstrate: 10. involvement of minority persons and minority business enterprises, as defined in s. 288.703, or

veteran business enterprises, as defined in s. 295.187, in ownership, management, and employment.

Florida: Section 8(b)(10) of Chapter 2017-232: An applicant for licensure renewal must show the effectiveness of

the diversity plan by including the following with his or her application for renewal: a. Representation of minority

persons and veterans in the medical marijuana treatment center’s workforce; b. Efforts to recruit minority persons

and veterans for employment; and c. A record of contracts for services with minority business enterprises and

veteran business enterprises.

Ohio: Section 9(C) of chapter 3796: The department shall issue not less than fifteen per cent of cultivator,

processor, or laboratory licenses to entities that are owned and controlled by United States citizens who are

residents of this state and are members of one of the following economically disadvantaged groups: Blacks or

African Americans, American Indians, Hispanics or Latinos, and Asians. If no applications or an insufficient number

of applications are submitted by such entities that meet the conditions set forth in division (B) of this section, the

licenses shall be issued according to usual procedures.

Ohio: Section 10(C) of chapter 3796: The board shall issue not less than fifteen per cent of retail dispensary

licenses to entities that are owned and controlled by United States citizens who are residents of this state and are

members of one of the following economically disadvantaged groups: Blacks or African Americans, American

Indians, Hispanics or Latinos, and Asians. If no applications or an insufficient number of applications are submitted

by such entities that meet the conditions set forth in division (B) of this section, the licenses shall be issued

according to usual procedures.

Pennsylvania: Section 615(a)(1-2): 615 Diversity goals. (a) Goals. It is the intent and goal of the General Assembly

that the department promote diversity and the participation by diverse groups in the activities authorized under

this act. In order to further this goal, the department shall adopt and implement policies ensuring the following:

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(1) That diverse groups are accorded equal opportunity in the permitting process. (2) That permittees promote the

participation of diverse groups in their operations by affording equal access to employment opportunities.

Pennsylvania: Section 615(b)(1): Duties of department. To facilitate participation by diverse groups in the

activities authorized under this act, the department shall: (1) Conduct necessary and appropriate outreach

including, if necessary, consulting with other Commonwealth agencies to identify diverse groups who may qualify

for participation in activities under this act.

Pennsylvania: Section 615(b)(2): Duties of department. To facilitate participation by diverse groups in the

activities authorized under this act, the department shall: (2) Provide sufficient and continuous notice of the

participation opportunities afforded under this act by publishing notice on the department's publicly accessible

Internet website.

Pennsylvania: Section 615(b)(3): Duties of department. To facilitate participation by diverse groups in the

activities authorized under this act, the department shall: (3) Include in the applications for permit under this act

language to encourage applicants to utilize and give consideration to diverse groups for contracting or professional

services opportunities.

Pennsylvania: Section 615(c)(1-3): Reports. No later than March 1, 2018, and each March 1 thereafter, the

department shall submit a report to the chairperson and minority chairperson of the Public Health and Welfare

Committee of the Senate and the chairperson and minority chairperson of the Health Committee of the House of

Representatives summarizing the participation and utilization of diverse groups in the activities authorized under

this act. The report shall include: (1 The participation level, by percentage, of diverse groups in the activities

authorized under this act. (2) A summary of how diverse groups are utilized by permittees, including in the

provision of goods or services. (3) Any other information the department deems appropriate.

Pennsylvania: Pennsylvania Department of Health, Office of Medical Marijuana. Phase 1 Permit Application

Debriefing. Available at http://www.health.pa.gov/My%20Health/Diseases%20and%20Conditions/M-

P/MedicalMarijuana/Documents/DOH%20Phase%201%20MMO%20Permit%20Application%20Debriefing%20Scrip

t.pdf.

Pennsylvania. See above.

Pennsylvania: See above.

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Social Equity Program Comparison Chart

OAKLAND SACRAMENTO LOS ANGELES SAN FRANCISCO

CRITERIA FOR EQUITY

APPLICANTS

City Residency

Annual income at or less than 80%

AMI

Lives or lived in ungentrified police

beats with high rates of

arrests/convictions OR arrested

after November 5, 1996 and

convicted of a cannabis offense

committed in city

Resides in a zip code of a priority

neighborhood for at least 7 years,

between 1994 and the date of

application OR from the most

negatively impacted zip code

subject to disproportionate

marijuana arrest rates (use or sales)

Annual income below 200% Federal

Poverty Level and net worth below

$250,000

A women or veteran-owned

business

*Each criteria qualifies the applicant

for a different set of benefits

Low income residents of LA, with a

prior cannabis conviction in the

State of California; OR

Low income residents of LA who live

in disproportionate impact areas for

5 years; OR

Residents of LA who live in

disproportionate impact areas for

10 years; OR

Cannabis Social Equity Supporting

Applicant, providing qualifying

support to the Social Equity

Program

*Each criteria qualifies the applicant

for a different set of benefits

Natural person;

Asset total that does not exceed asset

limits established by the Director;

Applies as a sole owner/operator, CEO

and shareholder with at least 40%

interest, shareholder with at least 51%

interest, Executive Director at non-profit

establishment with majority of board

made up of members who meet equity

criteria, OR a member of a cooperative

made of members who meet equity

criteria; AND

Meets 3 or more of the following criteria:

Is a member of a household with annual

income at or less than 80% San Francisco

Median Income;

Was arrested for, convicted of, or

adjudged to be a ward of the juvenile

court between 1971-2016 for a cannabis-

related offense;

Since 1995 has experienced eviction,

foreclosure, or revocation of housing

subsidy in San Francisco;

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;

Attended school under the jurisdiction of

the San Francisco Unified School District

for 5 years either consecutively or in total

between 1971-2016;

Between 1971-2016 lived for at least 5

years, either consecutively or in total, in

San Francisco census tracts where at least

17% of households had incomes at or

below the federal poverty level

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OAKLAND SACRAMENTO LOS ANGELES SAN FRANCISCO

BENEFITS FOR EQUITY

APPLICANTS

Industry specific technical

assistance

Business ownership technical

assistance

No interest business start-up loans

Waivers from City permitting fees.

Expungement of criminal records

Priority conditional use and

business operations permits

Processing and fee waiver/deferral

Other benefits TBD (community

organizations working with city to

make recommendations)

Waived fees

Technical assistance

Expungement assistance

Business and compliance training

Access to the Industry Investment

Fund, if established

Priority permit processing

REQUIREMENTS FOR NON-

EQUITY APPLICANTS

RECEIVING SOCIAL EQUITY

BENEFITS

Commitment to employ 51%

transitional workers (having a prior

arrest and conviction for a

misdemeanor or felony, homeless, a

custodial single parent, receiving

public assistance, lacking a GED or

high school diploma, suffering from

chronic unemployment, having

been emancipated from the foster

care system, or a veteran of the U.S.

Military)

Cannabis social enterprise

A business that hosts/incubates an

equity business with prescribed goal

of successfully transitioning equity

business out of the incubator

Existing dispensaries (priority

review)

Social equity program partners who

provide business incubation for

Social Equity applicants (priority

review)

Both Social equity applicants and

Social Equity partners receiving

benefits from the Social Equity

Program may only transfer control

or ownership of their license to

persons who meet the same Social

Equity ownership and local

requirements.

During its first three years in operation as

a Cannabis Business:

Ensure that at least 30% of all Business

Work Hours are performed by local

residents;

Ensure that at least 50% of the Equity

Incubator’s employees meet the equity

applicant criteria;

Provide a community investment plan

demonstrating engagement with

businesses and residents located within

500 feet of the site of the proposed

Cannabis Business; AND

Either submit an “Equity Incubator Plan”

detailing future incubation capacity; OR

Be an Equity Incubator

EQUITY REQUIREMENTS

FOR ALL APPLICANTS

Describe how the applicant will:

support the establishment and growth of

Equity Applicants;

provide employment opportunities to

persons that have been

disproportionately impacted by the

criminalization of cannabis; AND

otherwise further the City’s equity goals

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OAKLAND SACRAMENTO LOS ANGELES SAN FRANCISCO

COMMUNITY

REINVESTMENT

Establishment of a Community

Reinvestment Fund to support:

Workforce development;

Access to affordable commercial real

estate;

Access to investment financing;

Access to legal services and business

administration

REQUIREMENTS FOR

MEDICAL DISPENSARIES

TRANSITIONING TO

COMMERCIAL

ESTABLISHMENTS WITH

SOCIAL EQUITY STATUS

Majority of the board of directors,

cooperative leadership structure or

executive leadership meet criteria

for Social Equity Program.

At least 30% of all Business Work Hours

are performed by workers who meet at

least three equity applicant criteria; AND

Submits an “Equity Plan” describing the

concrete steps dispensary will take to

encourage and support the establishment

and growth of Equity Applicants and

otherwise further the city’s equity goals

1:1 DETERMINATION

RATIO

Of the 8 new dispensary permits

issued per year, 50% shall be to

equity applicants.

During initial permitting phase, 50%

of permits shall go to equity

applicants.

2:1 ratio with non-equity applicants

for retail and micro-businesses

licenses

1:1 ratio for all other licenses

OUTREACH

Engage community-based business

organizations in diverse

neighborhoods to host free

informational workshops to share

information on licensing and assist

with cannabis license application

completion and compliance

requirements

The Department of Cannabis

Regulation shall provide

recruitment and outreach services

to support the Social Equity

Program

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OAKLAND SACRAMENTO LOS ANGELES SAN FRANCISCO

TECHNICAL ASSISTANCE

Industry specific technical

assistance

Business ownership technical

assistance

No interest start-up loans

Two-year pilot small business

support center and mentoring

program to facilitate the

development of cannabis

businesses owned by minorities,

women, and veterans through:

Industry specific training, coaching

and mentorship;

Supplier diversity matchmaking

events;

Business plan development;

Assistance establishing a legal entity

and other legal assistance

Regulatory compliance

Criminal record expungement

Training on managing back-end

business operations

Development of cannabis social

enterprise (CSE) collaboratives

Social Equity Program licensees may

be eligible for:

technical assistance;

expungement assistance;

business, licensing and compliance

training;

general business assistance; and

access to the Industry Investment

Fund if established.

The Department of Cannabis

Regulation shall also establish an

approved list of private investors to

fund start-up costs for approved

Social Equity applicant

DEDICATED FUNDING FOR

EQUITY PROGRAM

$3,400,00 annually (subject to tax

revenue availability)

+ $200,000 for a consultant

$1,000,000 over two years

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Social Equity Program Comparison Report

A review of cannabis industry equity programs throughout the country illustrates a broad range

of equity provisions and rationales that can be used to create a model equity program in

Massachusetts. This report compares the equity programs in four California cities—Oakland,

Sacramento, Los Angeles, and San Francisco—that have completed in depth equity research

projects and based their regulations on the disparities and obstacles found in their analysis. Ten

criteria were selected for comparison based on the kinds of equity provisions each city has

adopted, including: criteria for equity applicants, benefits for equity applicants; requirements

for non-equity applicants receiving social equity benefits; equity requirements for all applicants;

community reinvestment; requirements for medical dispensaries transitioning to commercial

establishments with equity status; 1:1 determination ratio; outreach; technical assistance; and

dedicated funding for equity programs.

Criteria for Equity Applicants

Oakland

1. Be an Oakland resident, demonstrated by a minimum of two of the documents listed

below, evidencing 10 years of residency. All residency documents must list the

applicant's first and last name, and the Oakland residence address in the police beats set

forth:

a. California driver's record; or

b. California identification card record; or

c. Property tax billing and payments; or

d. Verified copies of state or federal income tax returns where an Oakland address

within the police beats is listed as a primary address; or

e. Utility company billing and payment covering any month in each of the ten

years; and

2. Have an annual income at or less than 80% Oakland average median income (AMI),

adjusted for household size, demonstrated by federal tax returns and at least one of the

following:

a. two months of pay stubs; or

b. current profit and loss statement; or

c. balance sheet; and

3. Either (i) has lived in any combination of Oakland Police Department Beats 2X, 2Y, 6X,

7X, 19X, 21X, 21Y, 23X, 26Y, 27X, 27Y, 29X, 30X, 30Y, 31Y, 32X, 33X, 34X, 5X, 8X and 35X

for at least ten of the last twenty years, demonstrated through residency documents

listed above; or (ii) was arrested after November 5, 1996 and convicted of a cannabis

crime committed in Oakland, California, demonstrated through Department of

Corrections or Federal Bureau of Prisons documentation.

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Sacramento

1. Reside in a zip code of a priority neighborhood for at least 7 years, between 1994 and

the date of application, or from the most negatively impacted zip code subject to

disproportionate marijuana arrest rates (use or sales); or

2. Have economically disadvantaged status, as marked by income below 200% Federal

Poverty Level and net worth below $250,000; or

3. Be a women or veteran-owned business.

Los Angeles

1. Be low income residents of LA, with a prior cannabis conviction in the State of California

or who live in eligible disproportionate impact areas for a cumulative total of 5 years; or

2. Be low income residents of LA who live in eligible disproportionate impact areas for

cumulative total of 5 years or who have lived in eligible disproportionate impact areas

for a cumulative total of 10 years; and

3. Applicants under both tiers 1 and 2 shall make a good faith effort to have no less than

50% of weekly hours of licensee workforce performed by local employees; of those

employees 20% of employees must meet equity criteria and 10% must be transitional

workers; or

4. Be a Cannabis Social Equity Supporting Applicant, providing qualifying support to the

Social Equity Program.

San Francisco

1. Be a natural person;

2. At the time of application, have assets, excluding non-liquid assets and retirement

accounts, that do not exceed asset limits established by the Director;

3. Submit an application for a Cannabis Business Permit in any of the following capacities:

a. As the sole owner/operator of the Applicant; or

b. As an individual with an ownership interest of at least 40% in the corporate

Applicant, and who is also the Chief Executive Officer of the corporate Applicant;

c. As an individual with an ownership interest of at least 51% in the corporate

Applicant; or

d. As the Executive Director or member of the board of directors of a not-for-profit

Applicant where a majority of the members of the board of directors satisfy the

equity requirements; or

e. As an individual with a membership interest in an Applicant formed as a

cooperative; and

f. Meets three or more of the following additional criteria:

i. At the time of application, be a member of a household that earns no

more than 80% of the San Francisco Area Median Income, adjusted for

household size; and/or

ii. During the period 1971-2016, was arrested for, convicted of, or adjudged

to be a ward of the juvenile court for any crime under the laws of

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California or any other jurisdiction relating to the sale, possession, use,

manufacture, or cultivation of Cannabis; and/or

iii. Since 1995, have experienced housing insecurity in San Francisco, as

evidenced by eviction, foreclosure, or revocation of housing subsidy;

and/or

iv. Has a parent, sibling, or child who, during the period 1971-2016, was

arrested for, convicted of, or adjudged to be a ward of the juvenile court

for any crime under the laws of California or any other jurisdiction

relating to the sale, possession, use, manufacture, or cultivation of

Cannabis; and or

v. Attended a school under the jurisdiction of the San Francisco Unified

School District for five years, either consecutively or in total, during the

period 1971-2016.; and/or

vi. During the period 1971-2016, lived for at least five years, either

consecutively or in total, in San Francisco census tracts where at least

17% of the households had incomes at or below the federal poverty level,

as determined by the Director.

Benefits for Equity Applicants

Oakland

Equity Applicants shall be eligible for participation in the Equity Assistance program, which will

include industry specific technical assistance, business ownership technical assistance, no

interest business start-up loans, and waivers from city permitting fees.

Sacramento

Depending on the type/tier, equity applicants shall be eligible for services offered by the

business support center including the expungement of criminal records, priority conditional use

permit and business operations permit processing, and fee waiver or deferral. Other

components of the program, such as criteria to qualify for any of the services offered as well as

the various levels of support available to participants, are still being developed through a

collaborative effort with local community organizations.

Los Angeles

Depending on the type/tier, equity applicants shall be eligible for waived fees, technical

assistance, expungement assistance, business and compliance training, and access to the

Industry Investment Fund (if established).

San Francisco

Equity applicants are entitled to priority permit processing.

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Requirements for Non-Equity Applicants Receiving Social Equity Benefits

Oakland

This is not an element of the Oakland Social Equity Program.

Sacramento

Social Equity Program partners receiving benefits from the Social Equity Program, including

priority review, shall commit to employing 51% transitional workers (having a prior arrest and

conviction for a misdemeanor or felony; homeless; a custodial single parent; receiving public

assistance; lacking a GED or high school diploma; suffering from chronic unemployment; having

been emancipated from the foster care system; or a veteran of the U.S. Military.). Businesses

with equity incubators shall offer a Social Equity business free or greatly reduced rent, technical

assistance, and general business guidance with prescribed goal of successfully transitioning the

Social Equity business out of the incubator, in exchange for fee waivers or deferrals.

Los Angeles

Existing dispensaries qualify for priority review, as do social equity program partners who

provide business incubation for Social Equity applicants. Both Social Equity applicants and Social

Equity partners receiving benefits from the Social Equity Program may only transfer control or

ownership of their license to persons who meet the same Social Equity ownership and local

requirements.

San Francisco

Social Equity Program partners are eligible to receive priority review if they commit to

compliance with the following operating criteria:

1. Ensure that at least 30% of all business work hours are performed by local residents;

and

2. Ensure that at least 50% of the Equity Incubator’s employees meet the equity applicant

criteria; and

3. Provide a community investment plan demonstrating engagement with businesses and

residents located within 500 feet of the site of the proposed cannabis business; and

4. Comply with one of the following additional operating requirements:

a. Submit to the Director a written, actionable “Equity Incubator Plan” describing

how the Equity Incubator will encourage and support the establishment and

growth of Equity applicants who have been awarded cannabis business permits

by, among other things, providing business plan guidance, operations consulting,

and technical assistance; or

b. Provide an Equity Operator with rent-free commercial space owned or leased by

the Equity Incubator in which the Equity Operator conducts its cannabis

business. The rent-free commercial space must equal or exceed 800 square feet

or the equivalent of at least 10% of the square footage of the Equity Incubator’s

premises, and must include the Equity Incubator’s provision of security services

for the space.

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Equity-Related Requirements for All Applicants

Oakland

This is not an element of the Oakland Social Equity Program.

Sacramento

This is not element of the Sacramento Social Equity Program.

Los Angeles

This is not an element of the Los Angeles Social Equity Program.

San Francisco

All applicants shall describe how they will work to encourage and support the establishment

and growth of Equity Applicants who have been awarded cannabis business permits, provide

employment opportunities to persons that have been disproportionately impacted by the

criminalization of cannabis, and otherwise further the city’s equity goals.

Community Reinvestment

Oakland

This is not an element of the Oakland Social Equity Program.

Sacramento

This is not an element of the Sacramento Social Equity Program.

Los Angeles

This is not an element of the Los Angeles Social Equity Program.

San Francisco

The Community Reinvestment Fund is established to receive any monies appropriated or

donated for the purpose of providing assistance to entities and organizations working to

address the impact of racially disproportionate arrests and incarceration, generational poverty,

community degradation, housing insecurity, loss of educational and employment opportunities,

disruption of family structures, and other burdens of the failed War on Drugs. The Fund shall be

used exclusively by the Director of the Office of Cannabis or his or her designee to support:

1. Workforce development; and

2. Access to affordable commercial real estate; and

3. Access to investment financing; and

4. Access to legal services and business administration.

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Requirements for Dispensaries Transitioning to Commercial Establishments with Social Equity

Status

Oakland

This is not an element of the Oakland Social Equity Program.

Sacramento

For medical marijuana non-profits, the majority of the board of directors, cooperative

leadership structure or executive leadership shall be composed of those who meet the

requirements for Social Equity Applicants.

Los Angeles

This is not an element of the Los Angeles Social Equity Program.

San Francisco

A medical marijuana dispensary may apply for transitional approval for commercial operation

of a Social Equity Program business by meeting the following criteria:

1. Medical cannabis dispensaries that have more than 10 employees must demonstrate to

the satisfaction of the Director that at least 30% of all business work hours are

performed by workers who meet at least three of the equity applicant criteria; and

2. Must submit to the Director of the Office of Cannabis a written, actionable “Equity

Plan” describing the concrete steps the medical cannabis dispensary will take to

encourage and support the establishment and growth of Equity Operators; provide

employment opportunities to persons that have been disproportionately impacted by

the criminalization of cannabis; and otherwise further the city’s equity goals.

An extension of operating approval for such businesses may take place upon a finding that the

medical cannabis dispensary has demonstrated good faith compliance with its Equity Plan to

the satisfaction of the Director of the Office of Cannabis. An applicant who has not made a good

faith effort to comply with its Equity Plan will not be granted an extension of approval for

operation under the Social Equity Program.

1:1 Determination Ratio

Oakland

Eight dispensary licenses shall be issued each year, 50% of which shall go to Social Equity

applicants. Additionally, the city has instituted a two-phase permitting system for all other

licenses. During Phase I, which lasts until the $3.4 million allocated for the Social Equity

Program has been raised through tax revenue, the city shall issue 50% of all licenses to Social

Equity applicants. During Phase II, after the Social Equity Program has been fully implemented,

the requirement that the city issue half of all permits to Social Equity applicants ends.

Sacramento

This is not an element of the Sacramento Social Equity Program.

DRAFT - FOR DISCUSSION PURPOSES ONLY - NOT A FINAL DRAFT - HAS NOT BEEN APPROVED BY THE CNB

Los Angeles

After the processing of eligible dispensaries, Social Equity Program applicants shall be eligible

for priority processing at a 2:1 ratio with non-equity applicants for retail and micro-business

licenses, and a 1:1 ratio for all other licenses.

San Francisco

This is not an element of the San Francisco Social Equity Program.

Outreach

Oakland

This is not an element of the Oakland Social Equity Program.

Sacramento

The city shall engage local community-based business organizations in diverse neighborhoods

(based on qualifying zip codes) to host free informational workshops or seminars to share

information on licensing opportunities and assist with cannabis license application completion

and compliance requirements.

Los Angeles

The Department of Cannabis Regulation shall provide recruitment and outreach services to

support the Social Equity Program.

San Francisco

This is not an element of the San Francisco Social Equity Program.

Technical Assistance

Oakland

Social Equity applicants shall be eligible for participation in the Equity Assistance program,

which will include industry specific technical assistance, business ownership technical

assistance, and no interest business start-up loans.

Sacramento

The city shall establish a small business support center and mentoring program (CORE) to

facilitate the development of cannabis businesses owned by minorities, women, and veterans.

The program, which will be administered by a consultant selected through a request for

proposals process, would provide technical assistance and access to other essential business

services to new and growing business, in addition to facilitating an industry mentoring program.

The two-year pilot program will be administered by a third-party business and technical support

organization, with culturally competent staff with a history of successfully operating business

development programs. CORE will serve as an incubator program, a small business support

center, and a hub that will link program participants and cannabis businesses, that could

include, but are not limited to:

DRAFT - FOR DISCUSSION PURPOSES ONLY - NOT A FINAL DRAFT - HAS NOT BEEN APPROVED BY THE CNB

1. Intensive cannabis specific business education and technical assistance;

2. Training that includes individualized coaching, mentorship and apprenticeships;

3. Host supplier diversity and matchmaking events with broader industry, creating

stronger ties among social equity applicants and those outside the incubator program;

4. Business plan development;

5. Assistance establishing a legal entity;

6. City and state application completion support;

7. Regulatory compliance training;

8. Legal counsel;

9. Criminal record expungement assistance;

10. Training on managing back-end business operations; and

11. Development of cannabis social enterprise collaboratives.

Los Angeles

Depending on the type/tier Social Equity Program licensees may be eligible for technical

assistance, expungement assistance, business, licensing, and compliance training, general

business assistance, and access to the Industry Investment Fund, if established. The

Department of Cannabis Regulation shall also establish an approved list of private investors to

fund start-up costs for approved Social Equity applicants.

San Francisco

This is not an element of the San Francisco Social Equity Program.

Dedicated Funding for Equity Program

Oakland

The city budget provides for the use of up to $3.4 million for technical assistance and a loan

program for Social Equity applicants, as tax revenues become available, with an additional

$200,000 for a program consultant.

Sacramento

The CORE program, established to provide small business and technical support has been

allocated $1 million over two years.

Los Angeles

This is not an element of the Los Angeles Social Equity Program.

San Francisco

This is not an element of the San Francisco Social Equity Program.

DRAFT - FOR DISCUSSION PURPOSES ONLY - NOT A FINAL DRAFT - HAS NOT BEEN APPROVED BY THE CNB