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Date: |
November 17, 2026 |
28 |
Title
Authority to Apply for and Accept Grant Funds from the Cannabis Equity Grants Program for Local Jurisdictions (Districts: All)
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Overview
On January 27, 2021 (4), the Board of Supervisors (Board) directed staff to implement measures to provide economic access and equity in the cannabis industry. These measures included components of a Social Equity Program (SEP), Zoning Ordinance amendments, and a licensing/permitting system. The Board further directed that grant funding be secured to support implementation of the SEP, which would include numerous elements to prioritize equity, access, and business opportunities to help rectify the injustices caused by the War on Drugs and be in place prior to issuance of the first cannabis business license. Further, on March 3, 2021 (11), the Board directed the Office of Equity and Racial Justice (OERJ) to lead the development of the framework and strategy, including grant funding options, needed to initiate a SEP and coordinate this with the land use permitting system being developed by Planning & Development Services (PDS).
On February 7, 2022, Womxn’s Work Consulting, LLC was contracted to complete the Social Equity Assessment for Commercial Cannabis (Equity Assessment) for the County of San Diego. The Equity Assessment includes feedback received through the robust public outreach activities conducted by Womxn’s Work, extensive data analysis, and research of California jurisdictions’ cannabis programs and other states jurisdictions’ cannabis programs.
Today’s item requests authorization from the Board for OERJ to apply for and accept up to $1.2 million in grant funding from the Governor’s Office of Business and Economic Development Cannabis Equity Grants Program for Local Jurisdictions and adopt the required resolution. If awarded, this funding will be utilized to assist local equity applicants and licensees through grant and/or loan programs. OERJ plans on applying for the Fiscal Year 2026-27 grant solicitation by the December 1, 2026, deadline.
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Recommendation by Chief Administrative Officer:
1) Waive Board Policy B-29, Fees, Grants, Revenue Contracts - Departmental Responsibility for Cost Recovery, which requires prior approval of grant applications and full cost recovery of grants, as this grant does not recover any overhead costs associated with administering the grant.
2) Authorize the Office of Equity and Racial Justice to apply for and, if awarded, accept grant funding estimated up to $1.2 million from the Governor’s Office of Business and Economic Development Cannabis Equity Grants Program for Local Jurisdictions.
3) Authorize the Director of the Office of Equity and Racial Justice, or designee, to review and execute all required Cannabis Equity Grants Program and grant-related documents including any agreements, annual extensions, amendments, and/or revisions thereof that do not materially impact or alter the services or funding levels.
4) Adopt a resolution entitled: RESOLUTION OF THE BOARD OF SUPERVISORS OF THE COUNTY OF SAN DIEGO AUTHORIZING STATE OF CALIFORNIA CANNABIS EQUITYACT GRANT FUNDING. (Attachment A, on file with the Clerk of the Board).
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Equity Impact Statement
Throughout the region, a disproportionate number of Black, Indigenous, and People of Color (BIPOC) individuals remain incarcerated for the criminalization of cannabis. In San Diego County specifically, as analyzed in the Equity Assessment, cannabis-related arrest data shows that Black San Diegans are arrested at a rate that is five times the rate of white San Diegans; Pacific Islander San Diegans are arrested at a rate that is three times the rate of white San Diegans; Latine San Diegans are arrested at a rate that is two times the rate of white San Diegans; and Indigenous San Diegans are arrested at a rate that is 30% higher than the arrest rate for white San Diegans. As cannabis is legalized and permitted in San Diego County, the Board of Supervisors created a Socially Equitable Cannabis Program (SECP) to help guide the County of San Diego’s (County) approach to this new market and paradigm shift for how cannabis is perceived and regulated. In support of the SECP, the Office of Equity and Racial Justice (OERJ) have commissioned the development of a comprehensive Social Equity Assessment which included several community outreach sessions to inform the Social Equity Program and a program for social equity entrepreneurs.
Specific to cannabis social equity programming, OERJ contracted a consultant (Womxn’s Work Consulting, LLC) to complete the Equity Assessment to inform the overarching Socially Equitable Cannabis Program for the County, including the program for social equity entrepreneurs. Womxn’s Work collected qualitative and quantitative data and conducted research into best practices and lessons learned throughout the state, to inform the Equity Assessment. A total of 28 semi-structured interviews were conducted with community members, activists, politicians, cannabis growers, and retail owners. Additionally, five focus groups were completed with a diverse set of stakeholder groups. A total of 271 responses were received for the community survey.
The Equity Assessment was completed in October 2022 and was accepted by the Board in December 2022. The Equity Assessment proposed a detailed plan for advancing racial equity, continuing community engagement in a manner that is both empowering and healing, evaluation, and most importantly, County accountability to the most harmed communities in the continued development and implementation of social equity programming.
In March 2024, the County contracted with Cannabis Education Project to begin implementation on programming for the social equity entrepreneur program. The contractor has assisted with social equity program application intake and verification, hosted fifteen outreach events, and hosted Social Equity Entrepreneur Development (SEED) workshops. They continue to assist applicants through the cannabis licensing process and will continue to offer one-on-one mentoring and coaching, financial literacy workshops, leadership workshops, and workforce development opportunities.
Sustainability Impact Statement
The proposed actions to allow the Office of Equity and Racial Justice to apply and accept grant funding to bolster the Social Equity Program contribute to the following County of San Diego Sustainability Goals: engage the community; provide just and equitable access; transition to a green and circular economy; and protect health and wellbeing. Extensive community engagement through focus groups and workshops discussions have been a critical piece of this work. The goals of the social equity programming will work to reinvest in communities that were harmed by the War on Drugs and over criminalization of marijuana by providing sustainable opportunities and resources for growth and positive outcomes of those individuals and communities.
Fiscal Impact
There is no fiscal impact associated with applying and accepting a grant. If grant is awarded, funds will be included in the Fiscal Year 2027-28 Operational Plan in the Office of Equity and Racial Justice. The funding source would be the Governor’s Office of Business and Economic Development Cannabis Equity Grants Program for Local Jurisdictions. A Board Policy B-29 waiver is being requested because while the grant does allow for grant administration reimbursement, the funding does not reimburse overhead costs. These unrecovered costs will be funded by existing ongoing General Purpose Revenue. The public benefit for providing these services outweighs the B-29 unrecoverable costs. There will be no change in net General Fund costs and no additional staff years.
Business Impact Statement
Today’s requested actions, to apply for and accept the Governor’s Office of Business and Economic Cannabis Equity Grant, would have no immediate impact on local businesses. If awarded, the grant will support the County of San Diego’s Cannabis Social Equity Program by providing resources to reduce barriers to entry into the regulated cannabis industry. Funding will go towards supporting technical assistance, access to capital, and business development opportunities for eligible social equity applicants and licensees, promoting equitable economic participation and supporting small business growth in the unincorporated areas of San Diego County.
Advisory Board Statement
N/A
Background
Since 2021, the County of San Diego (County) has been developing a comprehensive Socially Equitable Cannabis Program (SECP) pursuant to Board of Supervisors (Board) direction to establish a regulatory framework for commercial cannabis activities while addressing the disproportionate impacts of cannabis prohibition on historically disadvantaged communities. The Board directed staff to develop a coordinated approach that integrates land use regulations, permitting, and social equity initiatives designed to expand economic opportunities and reduce barriers to participation in the regulated cannabis industry.
To support these efforts, the Office of Equity and Racial Justice (OERJ) secured funding through the Governor's Office of Business and Economic Development (GO-Biz) Cannabis Equity Grants Program for Local Jurisdictions and completed a comprehensive Social Equity Assessment. The assessment incorporated extensive community engagement, stakeholder input, data analysis, and best-practice research and provided recommendations to address the harms associated with the War on Drugs and improve equitable access to cannabis business opportunities.
Consistent with Board direction, the County subsequently established the regulatory, operational, and funding framework necessary to implement the SECP. Actions included transitioning cannabis licensing administration to Planning & Development Services, establishing a cannabis business tax, adopting social equity eligibility criteria and program oversight structures, and approving associated zoning, regulatory, and environmental requirements.
OERJ has successfully secured multiple rounds of state Cannabis Equity Grant funding to support eligible social equity applicants and entrepreneurs. In Fiscal Year 2022-23 the County was awarded $350,000, and in Fiscal Year 2024-25 awarded $1.4 million. Through these awards thirty-three applicants received grants ranging from $28,000 to $50,000 each. The grant program guidelines require that at least 80% of grant funding be distributed directly as grants or loans to cannabis social equity applicants for startup costs, while up to 10% may be used for administrative expenses and up to 10% for technical assistance.
Starting a cannabis business can require significant upfront investment, and many social equity applicants may not have access to the financial resources necessary to navigate the licensing process and launch a business. With cannabis licensing opening on October 5, 2026, social equity applicants are beginning their licensing journey and may use grant funds for eligible business-related expenses, including rent, licensing fees, legal services, equipment purchases, and regulatory compliance costs. By helping cover these startup expenses, the grant funding reduces financial barriers to entry and supports greater participation by social equity applicants in the regulated cannabis industry.
Today’s item requests authorization from the Board for OERJ to apply for and accept up to $1.2 million in grant funding from the GO-Biz Cannabis Equity Grants Program for Local Jurisdictions and adopt the required resolution. If awarded, this funding will be utilized to assist local equity applicants and licensees through grant and/or loan programs. OERJ plans on applying for the Fiscal Year 2026-27 grant solicitation by the December 1, 2026, deadline.
Linkage to the County of San Diego Strategic Plan
Today’s actions support the County of San Diego’s 2026-2031 Strategic Plan to facilitate meaningful community engagement, inspire civic engagement to impact change, and contribute to a system of restorative justice through increasing the well-being of our residents and environments to support social equity for individuals and neighborhoods impacted by the War on Drugs in the unincorporated areas of San Diego County.
Respectfully submitted,
Ebony N. Shelton
Chief Administrative Officer
Attachment(s)
Attachment A - RESOLUTION OF THE BOARD OF SUPERVISORS OF THE COUNTY OF SAN DIEGO AUTHORIZING STATE OF CALIFORNIA CANNABIS EQUITYACT GRANT FUNDING