The State of California adopted the California Cannabis Equity Act of 2018 (SB 1294, Bradford, 2018), authorizing grant funding through the Bureau of Cannabis Control (BCC) for local equity programs to assist eligible individuals in local jurisdictions to gain entry to, and successfully operate in, the State's regulated cannabis marketplace. This chapter shall be known as the Cannabis Local Equity Program Regulations.
(Ord. 375 § 1, 2019)
The purpose and intent of this chapter is to establish regulations consistent with the California Cannabis Equity Act of 2018 to assist local individuals to gain entry to, and successfully operate in, the State's regulated cannabis marketplace.
(Ord. 375 § 1, 2019)
These regulations shall apply to eligible individuals in the City of Rio Dell to gain entry to, and successfully operate in, the State's regulated cannabis marketplace.
(Ord. 375 § 1, 2019)
The purpose of these provisions is to describe the requirements for licensees of, or those seeking to apply to, the City of Rio Dell Cannabis Local Equity Program (CLEP). These provisions will be incorporated into a Cannabis Local Equity Program Manual as required by the State. These provisions and Manual describe the types of services to be provided by the CLEP, and program administration.
(1) 
Qualifications. Those applying for, or who are licensees of, the Cannabis Local Equity Program shall:
(a) 
Apply as a person, not an entity.
(b) 
Be one of the following:
(i) 
An individual licensed for, seeking a license for, or employment in a Rio Dell licensed cannabis business.
(ii) 
The business owner.
(iii) 
Own at least 40 percent of the business and be the principal executive or managing member.
(iv) 
Own at least 51 percent of the business.
(v) 
A board member of a nonprofit cannabis business where most of the board also qualify as equity applicants.
(vi) 
Have a membership interest in a cannabis business formed as a cooperative per Business and Professions Code Sections 26220 through 26231.2.
(vii) 
An employee of, or seeking employment with, a Rio Dell licensed cannabis business.
(c) 
Have resided in Humboldt County at least five years during the period 1971 to 2016.
(d) 
Have obtained or applied for a permit for, be employed in or seeking employment in commercial cannabis activities in the City of Rio Dell, or shall apply for a permit for commercial cannabis activities from the City, or shall seek employment in connection with the services and assistance to be provided by the Rio Dell Cannabis Local Equity Program.
(e) 
Meet at least one of the following equity conditions:
(i) 
Household income below 80 percent of median for Humboldt County in year submitting CLEP application;
(ii) 
Have been arrested for or convicted of the sale, possession, use, manufacture or cultivation of cannabis (including as a juvenile), or been subject to asset forfeiture, from 1971 to 2015;
(iii) 
Have a parent, sibling or child who was arrested for or convicted of the sale, possession, use, manufacture or cultivation of cannabis (including as a juvenile) from 1971 to 2015;
(iv) 
Have lived within a five-mile radius of the location of raids conducted by the Campaign Against Marijuana Planting (CAMP) program during the period from 1971 to 2015;
(v) 
Have engaged in cultivation of cannabis on property in Humboldt County owned, leased, or with the express permission of the owner, with a cultivation area less than 10,000 square feet, for a period of at least two years during the period from 1971 to 2015;
(vi) 
Be a member of an ethnic, racial or other disadvantaged community, including but not limited to LGBTQ persons;
(vii) 
Have become homeless or suffered a loss of housing as a result of marijuana enforcement during the period from 1971 to 2015.
(2) 
Services. Services to be provided by the Cannabis Local Equity Program may include, depending on need and the availability of funds from grants or other sources:
(a) 
Waiver of fees for application assistance meetings of up to two hours;
(b) 
Technical assistance from the City, including assistance with application preparation, plan of operations preparation, site plan preparation, etc., not to exceed eight hours;
(c) 
Deferral of payment of application fees for cannabis activities for a period not to exceed two years;
(d) 
Reduction or deferral of local cannabis excise taxes as approved by the City Council;
(e) 
Waiver or deferral of fees for training and certification by the Agricultural Commissioner's Office for Weights and Measures and pesticide applicators requirements or certification of scales used in cannabis licensed businesses in Humboldt County;
(f) 
Any other technical or financial assistance as deemed appropriate by the City Council.
(3) 
Program Administration.
(a) 
No more than 10 percent of Bureau of Cannabis Control Local Equity Program grant funds may be utilized for program administration;
(b) 
Principal administration and coordination of services shall be administered by the City Manager, Community Development Director and the Finance Director for determination of eligibility;
(c) 
City staff shall promulgate any policies, procedures, and forms necessary for program administration and submit them to the City Council for review and approval;
(d) 
To the maximum extent feasible, City staff will provide existing services to CLEP applicants and licensees, with the intent to have Equity Program funding pay for the cost of those services. Such funding will be provided either through the administration portion of the CLEP or eligible services described in subsection (2) of this section;
(e) 
City staff shall monitor and report on all program services provided through the CLEP, at least annually and more frequently as directed by the City Council, State law or regulation;
(f) 
The Planning and Building Department shall receive and process all applications to determine eligibility of Equity Program participants with coordination with the City Manager and Finance Director.
(4) 
Budget Allocation. Available Program funds shall be allocated for services specified in subsection (2) of this section, as follows:
Loans and Grants
60%
Technical Assistance, Training, Waivers and Fee Reductions
30%
Administration (not to exceed)
10%
(Ord. 375 § 1, 2019)