HomeMy WebLinkAbout1AA OCRCITY COUNCIL STAFF REPORT
DATE: November 12, 2020 CONSENT CALENDAR
SUBJECT: APPROVAL OF AN AMENDMENT OF THE CITY OF PALM SPRINGS
CANNABIS SOCIAL EQUITY PROGRAM
FROM: David H. Ready, City Manager
BY: Department of Special Program Compliance
SUMMARY:
On March 20, 2019, the City Council approved the City's Cannabis Social Equity Program
establishing a zero-dollar cannabis permit fee for eligible applicants (the "Program").
Subsequently, the City's Office of Special Program Compliance applied for and received
a Local Equity Grant from the state in the amount of $100,000 to implement the City's
Program. All grant funds must be used by February 28, 2021, with unused funds to be
returned to the state. Staff recommends the City Council consider an amendment to the
Program expanding the eligible uses beyond just the City's local permit fees to ensure all
available funds are used.
RECOMMENDATION:
Adopt Resolution No. __ , "A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF PALM SPRINGS, CALIFORNIA, AMENDING THE CANNABIS SOCIAL EQUITY
PROGRAM TO AUTHORIZE GRANT FUNDS FOR ALL ELIGIBLE USES AS
IDENTIFIED IN THE CALIFORNIA LOCAL EQUITY GRANT PROGRAM GRANT
AGREEMENT."
BACKGROUND:
On March 20, 2019, the City Council approved the City's Cannabis Social Equity Program
establishing a zero-dollar cannabis permit fee for eligible applicants. The Program as
adopted is limited to paying the City's local cannabis application fees (estimated at
$20,000 each). The City expected to make available grant funds for up to five qualified
applicants. A copy of the related staff report is included as Attachment 1.
ITEM NO. 1 (-\f\
2City Council Staff Report November 12, 2020 -Page 2 Amendment of the Cannabis Social Equity Program In furtherance of the Program, the City applied for a Local Equity Grant from the California ' Bureau of Cannabis Control (the "Bureau") to implement the City's Program. The City's application was favorably reviewed, and the City was one of only 10 agencies state-wide to receive a Local Equity Grant from the $10 million available. A copy of the state's notice of grant award is included as Attachment 2. The City and the Bureau entered into a grant agreement in January 2020, and the Bureau disbursed the full amount of the grant to the City on February 28, 2020. In accordance with the grant agreement, any unused funds remaining after one year of disbursement (February 28, 2021) must be returned to the state. STAFF ANALYSIS: The City has been actively promoting the Program to the community, and has received applications for funding pursuant to the Program from four applicants. Two of these applicants have been reviewed and verified as eligible to participate in the Program, with only one applicant having applied for and received the City's local cannabis business permit. The other applicant approved to participate in the Program is finalizing site selection and completion of the local cannabis business permit. Another two applications are under review. At this time, it appears that the full amount of the City's $100,000 Local Equity Grant will not be expended by February 28, 2021. In order to avoid having to return any unused grant funds to the state, Staff recommends amending the City's Program to expand the eligible uses of the grant funds to those identified in the grant agreement. Specifically, the grant agreement allows the City to loan or grant qualifying applicants grant funds for the following uses: to assist with startup and ongoing costs, including but not limited to, rent, leases, local and state application and licensing fees, regulatory adherence, testing of cannabis, equipment, capital improvements, and training and retention of a qualified and diverse workforce The Program as currently adopted is limited to paying the City's local applicant and licensing fees. Staff recommends adoption of a Resolution to amend the Program to revise Section 8 "Participant Benefits" to read: 8. Participant Benefits. A Program participant in either Classification 1 or 2 shall be entitled to receive the following benefits: i. Applicable City fees related to a Program participant's cannabis related business permit will be paid by the City resulting in a zero-dollar fee to the Program participant.
3City Council Staff Report November 12, 2020 -Page 3 Amendment of the Cannabis Social Equity Program ii. Educational workshops for application completion and processing. iii. Upon review by the City of available unused grant funds, the City may provide an additional grant to a Program participant to. assist with startup and ongoing costs, including but not limited to, rent, leases, state application and licensing fees, regulatory adherence, testing of cannabis, equipment, capital improvements, and training and retention of a qualified and diverse workforce. The amount of the grant will be dependent upon the number of Program participants and the amount of unused grant funds, if any. A Program participant receiving a grant shall be required to enter into a sub-recipient agreement with the City subject to terms and conditions required by the City Attorney extending to the Program participant the terms and conditions of the California Local Equity Grant Program Grant Agreement (No. DCA-BCC-2019-010) between the City and the State of California Department of Consumer Affairs full executed on January 10, 2020. The provision for a subsequent grant for cannabis business "startup" and ongoing business expenses is subject to the amount of any remaining funds after paying the City's local cannabis permit fees to approved applicants, and the number of approved applicants. To the extent only one applicant is approved, permitted and open for business, incurring qualified business expenses, that applicant may receive the full amount of the City's Local Equity Grant ($100,000). To the extent only two applicants are approved, permitted and open for business, incurring qualified business expenses, those applicants may equally receive half of the City's Local Equity Grant ($50,000). As proposed in the revised Program, any applicant receiving a grant from the City for cannabis business "startup" and ongoing business expenses will be required to enter into a sub-recipient agreement (similar to a CDBG funding agreement) whereby the applicant will be required to comply with all of the terms and conditions of the City's Local Equity Grant agreement with the state in use of the City's grant, including requirements for monthly monitoring of qualifying expenses and auditing to ensure compliance with the agreement. Staff recommends expanding the use of grant funds such that the full amount of the City's $100,000 grant is used. This will ensure the City is best positioned to apply for the second round of state funding to be announced in January, by demonstrating the City's initial grant was fully expended. A resolution is proposed for adoption to amend the Program, see Attachment 3. ENVIRONMENTAL IMPACT: The requested City Council action is not a "Project" as defined by the California Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a "Project" means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.
4City Council Staff Report November 12, 2020 -Page 4 Amendment of the Cannabis Social Equity Program According to Section 15378(b), a Project does not include: (5) Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment FISCAL IMPACT: Amendment of the Program expands the eligible uses of the grant funds to ensure the full amount of the City's $100,000 grant is expended avoiding the requirement to return any unused grant funds to the state. SUBMITTED: VfJ/Jvr.illtd±------1-___ _ Veronica Goedhart, Marcus L. Fuller, MPA, PE, PLS Director, Special Program Compliance Assistant City Manager David H. Ready, Esq. City Manager Attachments: 1. March 19, 2020, staff report 2. State Notice of Grant Award 3. Resolution
5ATTACHMENT 1
6CITY COUNCIL STAFF REPORT DATE: March 20, 2019 NEWBUSINSS SUBJECT: PROPOSED ADOPTION OF A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA AUTHORIZING THE IMPLEMENTATION OF THE CANNABIS SOCIAL EQUITY PROGRAM ESTABLISHING A ZERO-DOLLAR CANNABIS PERMIT FEE FOR PROGRAM PARTICIPANTS AND AUTHORIZE APPLICATION FOR STATE EQUITY GRANT FUNDING FROM: David H. Ready, City Manager BY: Veronica Goedhart, Special Programs Compliance Official SUMMARY: Staff recommends that the City develop and implement a social equity program to lower barriers to cannabis licensing. Staff recommends that the City apply for grant funding authorized by The California Cannabis Equity Act of 2018 established by Senate Bill 1294. The Citis Social Equity Program is contingent on funding authorized by The California Cannabis Equity Act of 2018. RECOMMENDATION: 1. Adopt Resolution No. ---"AUTHORIZING THE IMPLEMENTATION OF THE CANNABIS SOCIAL EQUITY PROGRAM ESTABLISHING A ZERO-DOLLAR CANNABIS PERMIT FEE FOR PROGRAM PARTICIPANTS" (ATTACHMENT A) 2. Authorize the City Manager to execute all documents consistent with this Resolution. STAFF ANALYSIS: At the direction of the Cannabis Subcommittee, Mayor Pro Tern Kors and Councilmember Roberts, City staff researched social equity policies for consideration and application for state equity grant funding. On March 1, 2019 The Bureau of Cannabis Control announced that they are accepting applications for grant funding authorized by The California Cannabis Equity Act of 2018 (ATTACHMENT B). Grant funds are for the purpose of assisting local equity applicants and local equity licensees to gain entry to and successfully operate in the state's regulated cannabis marketplace. All applicants that meet the eligibility requirements for grant funding will receive a minimum grant of one-hundred thousand dollars ($100,000), unless a lesser amount is requested. The proposed Social Equity Program would be contingent upon grant funding. Grant application must be made no later than April 1, 2019. li°EM NO. _5_._D_. _
7City Council Staff Report March 20, 2019 --Page 2 Cannabis Social Equity Program and Grant Funding The Bureau of Cannabis Control has set forth the timeline for grant application submission and reward: EVENT: DATE: Notice of Funds Availability Release March 1, 2019 On-line Portal Open for Application Submission March 1, 2019 Deadline for Application Submission April 1, 2019 Grant Award Notification Period April 1 -May 1, 2019 Distribution of Grant Funds April 1 -June 30, 2019 • The Program is proposed as a two-year pilot program contingent on funding authorized by the California Cannabis Equity Act of 2018. • The initial pilot program will offer an income-contingent fee waiver for cannabis permitting fees. • The pilot program may be revised and modified upon City Council direction. • The goal of cannabis social equity is to recognize and address the impact that federal and state cannabis enforcement policies have had on low income communities across the country. Recently, California citizens voted to decriminalize cannabis activity at the state and local level. Cities have taken this a step further by working to ensure equal opportunity in the cannabis industry for individuals who may have been impacted by previous cannabis laws. California cities that have adopted cannabis equity ordinances include Los Angeles, San Francisco, Sacramento, and Oakland. In addition, state legislatures have begun to consider cannabis social equity programs, including California, Florida, Ohio, Pennsylvania, and Massachusetts. Staff is proposing a Program for Palm Springs that is consistent with the general framework created by other jurisdictions. Specifically, staff recommends establishing the following criteria to qualify an individual for the Program: 1. Annual family income at or below 80 percent of the Area Median Income (AMI), and net worth below $250,000; 2. At least one of the following: a. Was arrested or convicted for a crime relating to the sale, possession, use, or cultivation of cannabis in Riverside County prior to November 8, 2016 that could have been prosecuted as a misdemeanor or citation under current California law; b. Lived in a Riverside County census tract for a minimum of three years where at least 51 percent of current residents have a household income at or below 80 percent of the AM I. Income limits will allow the City to target Program benefits to only those individuals with the greatest need for assistance. Proof of a cannabis arrest or conviction will identify individuals who were directly impacted by the enforcement of cannabis laws that are no longer considered serious crimes. Geographic criteria will qualify individuals from neighborhoods whose communities have the greatest need for assistance. Individuals who are eligible for the Program may receive cannabis permit fee 2
8City Council Staff Report March 20, 2019 -Page 3 Cannabis Social Equity Program and Grant Funding waiver. Proposed application benefits include fee waivers, and access to workshops to help navigate the City's licensing process. The proposed Resolution would be effective April 1, 2019. CEQA ANALYSIS: Environmental Considerations: This action is exempt from CEQA because it is the adoption of an ordinance, rule, or regulation by a local jurisdiction that requires discretionary review, including environmental review, and approval of permits, licenses, or other authorizations to engage in commercial cannabis activity (CEQA Guidelines§ 15601 (8)(1 ), Cal. Bus. and Prof. Code§ 26055(h)) and because it does not have the potential for causing a significant effect on the environment (CEQA Guidelines §15061(b)(3)). FJSCAL IMPACT: The implementation of the Social Equity Program is contingent on the successful application of grant funds from the State of California. ~ ~ ~~~ Veronica Goedhart, City Manager Special Programs Compliance Official Attachments: A. Bureau of Cannabis Control March 1 . 2019 Press Release B. Proposed Resolution 3
9ATTACHMENT A ATTACHMENT A 4
10ST ATE OF CALIFORNIA-BUSlNESS. CONSUMER SERVICES. ANO HOUSING AGENCY • GAVIN NEWSOM, GOVERNOR BUREAU OF CANNABIS CONTROL P.O. Box419106 Rancho Cordova, CA 95741-9106 Phone: (833) 768-5880 I Fax: (916) 575-7289 Websites: www.b~c.ca.qov I https://cannabis.ca.gov PRESS RELEASE FOR IMMEDIATE RELEASE: Contact: Alex Traverso (916) 465-9005 March 1, 2019 BUREAU OF CANNABIS CONTROL ACCEPTING EQUITY GRANT APPLICATIONS SACRAMENTO -The Bureau of Cannabis Control (Bureau) announced today that it is accepting applications for grant funding authorized by The California Cannabis Equity Act of 2018 {Equity Act) established by Senate Bill 1294. The Bureau has been appropriated $1 O million to award to cities and counties to assist equity applicants and licensees through equity programs that focus on inclusion and support of persons in the cannabis industry, who are linked to populations or neighborhoods that were negatively or disproportionately impacted by cannabis criminalization. "The Bureau is excited to open the application process for the equity grant funding," Bureau of Cannabis Control Chief Lori Ajax said. 'This funding is a significant step in supporting equity applicants with entry into the cannabis industry, as well as to provide support to equity licensees." All grant funds will be distributed no later than June 30, 2019. Applicants that meet the eligibility requirements and submit timely applications will receive a minimum grant of $100,000, unless a lesser grant amount is requested. Only cities and counties are eligible for grant funds. Applications must be submitted electronically through an online portal between March 1, 2019, and April 1, 2019. The application and further information about the equity grant guidelines and process can be found here -https://www.bcc.ca.gov/about us/equity grant.html, or under the "About Us" section of the Bureau's website. ### To subscribe to email alerts to hear about updates as they become available, please visit the Bureau's website at http:llwww.bcc.ca.gov/. For information on all three state cannabis licensing authorities, please visit the state's California Cannabis Portal at https:llcannabis.ca.gov/. Follow the Bureau on Facebook. Twitter and lnstagram for daily news and updates. Those looking to get in touch with the Bureau of Cannabis Control may contact us directly through email at bcc@dca.ca.gov. 5
11ATTACHMENT B ATTACHMENT 13 6
12Resolution No. Page 1 ---RESOLUTION NO. --A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, AUTHORIZING THE IMPLEMENTATION OF THE CANNABIS SOCIAL EQUITY PROGRAM ESTABLISHING A ZERO-DOLLAR CANNABIS PERMIT FEE FOR PROGRAM PARTICIPANTS. A. On July 26, 2017, the City Council of the City of Palm Springs approved and adopted Ordinance 1933, codified in Palm Springs Municipal Code (PSMC) 5.45 and 5.55; and B. Pursuant to PSMC Sections 5.45.120 and 5.55.120, the City Council, by resolution, may establish various fees and charges related to the cannabis permit application process, and ongoing administrative and regulatory services arising from and related to commercial cannabis businesses and activities in the City; C. JAt the direction of the Cannabis Subcommittee, Gity staff researched social equity policles for consideration; I D. Staff developed the attached, Cannabis Social Equity Program (11Program"). The Program is aimed to assist individuals who have been negatively impacted by the disproportionate enforcement of cannabis-related crimes by providing them with assistance and an opportunity to participate in the emerging cannabis industry; E. The proposed Program will assist individuals and businesses to participate in the cannabis industry by removing barriers to entry and facilitating business opportunities for those who otherwise do not have access due to lack of capital or criminal history; F. A successful Program will contribute to City tax revenues and support the City due to dollars through the reinvestment of funds; G. The Program will benefit applicants that are either individuals who have been disproportionately impacted as described herein or businesses that directly benefit such individuals; H. Program participants will benefit from a zero-dollar fee for cannabis permit fees. The City may set fees at less than full recovery to ensure program access and viability; I. The Program may be revised at the direction of Council; J. The Program will be contingent on grant funding authorized by the California Equity Act of 2018. 7
13Resolution No. __ _ Page2 THE CITY COUNCIL OF PALM SPRINGS RESOLVES: SECTION 1. The true and correct recitals above, inclusive of the defined terms therein, are incorporated in this Resolution by this reference as the material basis for the City Council action taken herein. SECTION 2. This Resolution establishes and adopts a pilot social equity program for cannabis applicants (Exhibit A). SECTION 3. The City will continue to evaluate the Program and will continue to research to address any disparate, negative impacts of cannabis-related regulation and enforcement in the City of Palm Springs reasonably related to the findings herein. SECTION 4. The City Manager, or the City Manager's designee, is authorized to make amendments that are not substantive to the Program. Substantive amendments must be approved by resolution of the City Council. SECTION 5. Notwithstanding City Council Resolution No. R23854 for the City's Comprehensive Fee Schedule, the fee for cannabis business permits for qualified Program p+rticipants shall be zero dollars ($0) for the term of the two-year pilot program. SECTION 6. Excess revenue from cannabis-related business operations tax shall be utilized to recover the associated costs of processing business permits for qualified Program participants by the City. SECTION 7. Exhibit A is part of the Resolution SECTION 11. The Resolution shall be effective April 1, 2019. PASSED, APPROVED AND ADOPTED BY THE PALM SPRINGS CITY COUNCIL THIS 20TH DAY OF MARCH, 2019. ATTEST: ANTHONY MEJIA, CMC, CITY CLERK DAVID H. READY, CITY MANAGER 8
14EXHIBIT A CITY OF PALM SPRINGS CANNABIS EQUITY PROGRAM The City of Palm Springs has determined, that a two-year pilot program dedicated to aiding individuals who were subject to criminal law enforcement of cannabis related crimes at a disproportionate rate to their population within the County of Riverside and, as a result, were negatively impacted is in the best interests of the City. As such, the City has adopted the Cannabis Equity Program ("Program") described herein. The Program will be contingent on grant funding authorized by The California Equity Act of 2018. 1. Program Purpose. Program seeks to reduce the barriers of entry and participation for individuals that have been negatively impacted by the disproportionate law enforcement of cannabis related crimes by providing them access to cannabis business application. The Program is a conscious effort to provide support necessary to ensure that the emerging cannabis market is accessible to all, regardless of economic status, gender, racial, cultural background and criminal history. Although City funding for the Program's cannabis business development resources and services shall expire in two years from the date of adoption (unless such time for these pilft program support services are otherwise reduced or1extended by resolution of the City Council), all other program definitions, eligibility, processing, benefits, features and functions shall remain intact as policy. 2. Definitions. Except for as provided herein, for purposes of the Program, the words and phrases defined in chapters 5.45 and 5.55 of the Palm Springs Municipal Code shall have the same meaning herein. Further, the following words and phrases shall have the meanings respectively ascribed to them by this section: a. "Applicant" means an individual or business who makes a formal application to be admitted in the Program. b. "Business" means a firm, organization, association, partnership, business trust, corporation, company, or like entity. c. "Cannabis Equity Program" or "the program" means the City's Cannabis Equity Program. d. "Program participant" or "participant" means an individual or a business that has been admitted to participate in the Program. e. "Equity share" means an ordinary share, including a fractional or part ownership in which a shareholder, as a fractional owner, undertakes the maximum entrepreneurial risk associated with a business venture. The holders of such shares are members of the company and have voting rights. f. "Individual" means a person. 10
15EXHIBIT A g. "Low income individual" means an individual who currently (at the time of licensing) lives in a household with a household income that is at or below 80 percent of the Area Median Income (AMI) for the county of residence, as determined by the United States Department of Housing and Urban Development or its successor agency, and net worth below $250,000. h. 11Member of an Impacted Family" means an individual who, in the previous tax year, had a parent, legal guardian, child, spouse, or dependent, or was a dependent of an individual who, prior to July 26, 2017, was arrested for, convicted of, or adjudged to be a ward of the juvenile court for any non-violent crime under the laws of California or any jurisdiction relating to the sale, possession, use, cultivation, manufacture, or transport of cannabis. 5. Review Process. The City Manager or their designee shall review and approve all Program applications that meet the eligibility requirements described herein. If an application is denied, that applicant may appeal to the City for evaluation and a final determination. 6. Program Eligibility. To be admitted into the Program, an applicant must provide documentation, as described in section 7 below, that sufficiently demonstrates that the applicant satisfie, any one of the following Classifications: a. Individuals. An individual that is eligible to participate in the program is either: i. Classification 1. A current or former resident of the City of Riverside County who previously resided or currently resides in a low income household and was either: (a) Arrested or convicted for a cannabis related crime in Sacramento between the years 1980 and 2011; or is (b) An immediate family member of an individual described in subsection a of Classification 1 or Classification 2. ii. Classification 2. A current or former resident of Riverside County who has lived in a low-income household for at least five (5) years, between the years of 1980 and 2011 in the following zip codes: 92262, 92263, 92264. 7. Documentation and Review. An applicant shall provide the following with its application for the Program, in addition to any other documentation that the City deems necessary to determine the applicant's eligibility: a. Proof of Income. Proof of income shall be supported with federal and state tax returns and at least one of the following documents from the last five (5) years: two months of pay stubs; proof of current eligibility for General Assistance, food stamps, Medi-Cal/CalWORKS, supplemental security income, or social security disability, or similar documentation. b. Proof of residency. Proof of residency shall be supported by a minimum of two of the following documents: California driver's or identification card records, property tax billings and payments, signed rental agreement, verified copies of state or federal tax returns with an address in the geographic area of the city of Sacramento, school records, medical records, banking records, Sacramento 11
16EXHIBIT A Housing Authority records, or utility, cable, or internet company billing and payment records. c. Proof of arrest or conviction of a cannabis related crime. Proof of an arrest or conviction of a cannabis related crime shall be demonstrated by federal or state court records indicating the disposition of the criminal matter, records expungement documentation, or any other applicable law enforcement record. 8. Participant Benefits. A Program participant shall be entitled to receive the following · benefits based on the applicable Classification: a. Classifications 1, and 2 Participants shall receive the following: i. The fee for a participant's cannabis related business permit is waived by the City. ii. Educational workshops for application completion and processing. 9. Condition on Cannabis Permit. Program participants are required to continue, maintain, and carry out the City's respective cannabis related and business requirements through the term of their respective cannabis business operations permit. Compliance with this section 9 shall be ·a condition of participants respective cannabis business operations permit, such that failuret to comply with this section 9 shall be grounds to deny, suspend, or revoke such cannabis business operations permit pursuant to Palm iprings Municipal Code sections 5.45.410 and 5.55.410. 10. Program Monitoring and Reporting. The Office of Special Programs shall provide quarterly updates to the City Council on the status of the Program, including number of participants, participant success measured by the number of participants either ready to obtain or that have obtained a cannabis business operating permit. The City will conduct and Equity Study and may expand the eligibility and benefits of the program. Additionally, the report should include an evaluation of any ongoing barriers to entry and participation, evaluations of the Equity Study, and recommend solutions as needed to advance equity. 12
17ATTACHMENT 2
18STATE OF CALIFORNIA-BUSINESS, CONSUMER SERVICES, AND HOUSING AGENCY • GAVIN NEWSOM, GOVERNOR BUREAU OF CANNABIS CONTROL P.O. Box 419106 Rancho Cordova, CA 95741-9106 Phone: (833) 768-5880 I Fax: (916) 851-3636 Websites: www.bcc.ca.gov I https://cannabis.ca.gov PRESS RELEASE FOR IMMEDIATE RELEASE: October 9, 2019 Contact: Aaron Francis (916) 465-9121 BUREAU OF CANNABIS CONTROL ANNOUNCES LOCAL EQUITY GRANT FUNDING RECIPIENTS SACRAMENTO -The Bureau of Cannabis Control (Bureau) announced today that it has awarded equity grant funding to local jurisdictions to be used for commercial cannabis equity programs that focus on inclusion and support of persons or commu·nities that were negatively or disproportionately impacted by cannabis criminalization. Grant funds are to be used to provide assistance and services to local equity applicants and licensees. The Bureau awarded a total of $10 million in equity grant funding to ten local jurisdictions, as follows: • City of Los Angeles Awarded • City of Oakland Awarded • County of Humboldt Awarded • City & County of San Francisco Awarded • City of Sacramento Awarded • City of Long Beach Awarded • City of San Jose Awarded • County of Santa Cruz Awarded • City of Coachella Awarded • City of Palm Springs Awarded $1,834,156.38 $1,657,201.65 $1,338,683.13 $1,338,683.13 $1,197,119.34 $913,991.77 $560,082.30 $560,082.30 $500,000.00 $100,000.00 The equity grant funding is authorized by the California Cannabis Equity Act of 2018 established by Senate Bill 1294 (Bradford 2018) and the Budget Act of 2019, Item 1111-490 -Reappropriation. All qualifying local jurisdiction applicants that met the criteria and requirements for grant funding received a minimum grant of $100,000. Fund awards were determined based on the program guidelines up to the· amount requested by the local jurisdiction. The guidelines can be found at https://www.bcc.ca.gov/about us/documents/equity grant guidelines 2019.pdf. ###
19ATTACHMENT 3
20RESOLUTION NO. --A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING THE CANNABIS SOCIAL EQUITY PROGRAM TO AUTHORIZE GRANT FUNDS FOR ALL ELIGIBLE USES AS IDENTIFIED IN THE CALIFORNIA LOCAL EQUITY GRANT PROGRAM GRANT AGREEMENT. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, AS FOLLOWS: SECTION 1. The City Council of the City of Palm Springs hereby, finds, determines and declares as follows: A. On March 20, 2019, the City Council adopted Resolution No. 24581 authorizing the implementation of the Cannabis Social Equity Program (the "Program"). The Program is aimed to assist individuals who have been negatively impacted by the disproportionate enforcement of cannabis-related crimes by providing them with assistance and an opportunity to participate in the emerging cannabis industry. B. The Program adopted by the City Council will provide a Cannabis Social Equity Grant to qualifying applicants to assist individuals and businesses to participate in the cannabis industry by removing barriers to entry and facilitating business opportunities for those who otherwise do not have access due to lack of capital or criminal history. C. On October 9, 2019, the City was awarded Local Equity Grant Funding in the amount of $100,000 from the California Bureau of Cannabis Control (the "Bureau") to implement the City's Program. Pursuant to this grant, the City anticipated funding available for five qualifying Cannabis Social Equity Grant applicants with permit fees of $20,000 each. D. The City and the Bureau entered into that certain California Local Equity Grant Program Grant Agreement identified by Grant Agreement No. DCA-BCC-2019-010 and fully executed by the state on January 10, 2020, (the "Grant Agreement"). In accordance with the Grant Agreement, the Bureau disbursed the Local Equity Grant in the amount of $100,000 to the City on February 28, 2020. E. The City has established and made available the Program to qualifying Social Equity applicants, and since its implementation the City has received applications from four prospective Social Equity applicants, with two Social Equity applicants approved pursuant to the Program, and with one applicant receiving a cannabis license and permit to operate with an opening scheduled in November 2020.
21Resolution No. __ _ Page2 F. In accordance with the terms and conditions of the Grant Agreement any amount of grant funds not expended within one year of disbursement (February 28, 2021) shall be retu med to the Bureau. G. The Grant Agreement establishes a wide range of eligible uses of the grant funds, including: (a) to provide a loan or grant to a local equity applicant or local equity licensee to assist with startup and ongoing costs, including but not limited to, rent, leases, local and state application and licensing fees, regulatory adherence, testing of cannabis, equipment, capital improvements, and training and retention of a qualified and diverse workforce; (b) to support local equity program efforts to provide sources of capital to local equity applicants and local equity licensees; (c) to provide direct technical assistance to local equity applicants and local equity licensees; and ( d) to assist in the administration of local equity programs. H. Expanding the Program as originally adopted to make available the grant funds for all eligible uses as identified in the Grant Agreement will ensure the City has the opportunity to award and issue local equity grants to qualified applicants up to the full amount of the Local Equity Grant awarded to the City within one year of the Bureau's disbursement to the City. SECTION 2. This Resolution amends the Cannabis Social Equity Program as adopted by the City Council on March 20, 2019, pursuant to Resolution No. 24581, by revising Section 8 "Participant Benefits" to expand the eligible uses of grant funds to those identified in the Local Equity Grant, all as identified on Exhibit "A" attached hereto. SECTION 3. This Resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk of the Council shall attest to and certify the vote adopting this Resolution. PASSED, APPROVED AND ADOPTED BY THE PALM SPRINGS CITY COUNCIL THIS 12TH DAY OF NOVEMBER, 2020. ATTEST: Anthony J. Mejia, City Clerk David H. Ready, Esq., Ph.D. City Manager
22Resolution No. __ _ Page 3 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS) I, ANTHONY J. MEJIA, City Clerk of the City of Palm Springs, hereby certify that Resolution No. __ is a full, true and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Springs on November 12, 2020, by the following vote: AYES: NOES: ABSENT: ABSTAIN: Anthony J. Mejia, City Clerk City of Palm Springs, California
23EXHIBIT "A" The City of Palm Springs Cannabis Equity Program is hereby revised as follows: Section 8 "Participant Benefits" is hereby replaced in its entirety as follows: 8. Participant Benefits. A Program participant in either Classification 1 or 2 shall be entitled to receive the following benefits: i. Applicable City fees related to a Program participant's cannabis related business permit will be paid by the City resulting in a zero-dollar fee to the Program participant. ii. Educational workshops for application completion and processing. iii. Upon review by the City of available unused grant funds, the City may provide an additional grant to a Program participant to assist with startup and ongoing costs, including but not limited to, rent, leases, state application and licensing fees, regulatory adherence, testing of cannabis, equipment, capital improvements, and training and retention of a qualified and diverse workforce. The amount of the grant will be dependent upon the number of Program participants and the amount of unused grant funds, if any. A Program participant receiving a grant shall be required to enter into a sub-recipient agreement with the City subject to terms and conditions required by the City Attorney extending to the Program participant the terms and conditions of the California Local Equity Grant Program Grant Agreement (No. DCA-BCC-2019-010) between the City and the State of California Department of Consumer Affairs full executed on January 10, 2020.