California is committed to quickly transition cannabis businesses from provisional to annual licenses. One-time grant funding, totaling $100 million, is available to help. Extra funds are available for eligible local jurisdictions with social equity programs.
The funds target areas with the highest numbers of provisional licensed businesses. Large numbers of small, legacy and equity businesses operate within these areas.
The Department of Cannabis Control (DCC) awarded grant funding in January 2022.
Grant funding
Eligible jurisdictions and funding amounts were specified through the Budget Act (The Budget Act, 1115-101-0001- For local assistance).
| Local jurisdiction | Appropriated base funding (USD) | Appropriated equity funding (USD) | Total appropriated funding (USD) | Total grant award (USD) |
|---|---|---|---|---|
| City of Adelanto | $972,696 | – | $972,696 | $972,696 |
| City of Commerce | $416,870 | – | $416,870 | $416,319.85 |
| City of Desert Hot Springs | $822,160 | – | $822,160 | $822,160 |
| County of Humboldt | $7,842,974 | $10,792,162 | $18,635,137 | $18,635,137 |
| County of Lake | $884,309 | $1,216,834 | $2,101,143 | $2,101,143 |
| City of Long Beach | $1,748,537 | $2,187,405 | $3,935,942 | $3,934,773.43 |
| City of Los Angeles | $9,912,238 | $12,400,122 | $22,312,360 | $22,312,360 |
| County of Mendocino | $7,611,370 | $10,473,468 | $18,084,837 | $17,586,406.62 |
| County of Monterey | $1,737,035 | – | $1,737,035 | $1,737,035 |
| City of Oakland | $4,400,293 | $5,504,727 | $9,905,020 | $9,905,020 |
| County of Nevada | $1,221,188 | – | $1,221,188 | $1,221,188 |
| City of Sacramento | $2,570,697 | $3,215,919 | $5,786,617 | $5,786,616.84 |
| City of San Diego | $764,261 | – | $764,261 | $764,261 |
| City and County of San Francisco | $1,366,407 | $1,709,363 | $3,075,769 | $3,075,769 |
| City of Santa Rosa | $775,841 | – | $775,841 | $775,841 |
| County of Sonoma | $1,158,023 | – | $1,158,023 | $1,158,023 |
| County of Trinity | $3,295,102 | – | $3,295,102 | $3,293,866.65 |
How local governments plan to use the funds
City of Adelanto
The City of Adelanto proposed using grant funds to improve the cannabis entitlement, inspection and licensing process. The City will use grant funds to improve the Environment Impact Report (EIR) and California Environmental Quality Act (CEQA) process for cannabis-zoned areas.
Grant results
- Total amount disbursed: $778,156.80
- Total expenditures: $0.00
- Total returned to DCC: $778,156.80
- 20% determination/closeout status: Grant closeout initiated – Undisbursed
Achievements
Jurisdiction did not provide achievements.
Challenges
Jurisdiction did not provide challenges.
City of Commerce
The City of Commerce proposed using grant funds to aid in hiring staff and increasing staff hours to assist cannabis operators with obtaining the approvals needed to acquire their annual licenses.
Grant results
- Total amount disbursed: $333,055.88
- Total expenditures: $0.00
- Total returned to DCC: $333,055.88
- 20% determination/closeout status: Grant closeout initiated – Undisbursed
Achievements
N/A
Challenges
The challenges and barriers the City of Commerce faced during the grant agreement that impacted the utilization of the grant was the City experienced miscommunication and unclear guidance from OGM, which resulted in difficulties meeting grant requirements. The City had to provide additional records, updates, charts, and explanations—sometimes 1–2 years after activities were completed—to address requirements that were not originally communicated. Despite these efforts, some staff expenditure justifications were rejected, which affected the City’s ability to fully utilize the grant funds. Clearer and more timely communication from OGM would have helped the City meet the grant requirements.
City of Desert Hot Springs
The City of Desert Hot Springs proposed using grant funds to hire planning/environmental consultants to process cannabis applications and establish permanent licenses, including completing and/or reviewing CEQA technical studies, completing CEQA analysis and reporting, processing local and state public noticing and/or public hearings, and assisting applicants with submitting requirements for state cannabis licensure.
The City will also use grant funds to hire IT/GIS consultants to assist with the development of a software database for tracking cannabis licenses, online tools and resources for cannabis applicants, and an online application submission process; this is intended to streamline the cannabis application process by making resources readily available to applicants.
Grant results
- Total amount disbursed: $822,016.00
- Total expenditures: $153,394.46
- Total returned to DCC: $668,621.54
- 20% determination/closeout status: Awarded
Achievements
The City of Desert Hot Springs made significant progress by hiring a cannabis consultant, approving 12 applications for final licensure, assisting 13 provisional licensees in achieving local compliance, and streamlining the application, licensing, CEQA, tracking, and resource processes.
Challenges
The City of Desert Hot Springs experienced delays due to applicants’ slow responses and litigation involving the initial consultants, which hindered the City’s ability to secure a replacement contractor and continue program activities.
County of Humboldt
The County of Humboldt proposed using grant funds to conduct a hydrologic assessment of watersheds, which will identify baseline groundwater supply for each of the 12 watersheds located in the County. This assessment will provide insight into water used by cannabis cultivators and serve as a baseline for ongoing environmental decisions.
The County will also use grant funds for two licensee grant programs:
- Stream protection program – to increase water storage and conservation; up to $40,000 in matching funds per applicant
- Renewable energy program – to fund replacement of gas/diesel-powered generators with renewable energy systems: up to $20,000 in matching funds per applicant
Grant results
- Total amount disbursed: $18,635,137.00
- Total expenditures: TBD
- Total returned to DCC: TBD
- 20% determination/closeout status: Awarded
Achievements
TBD
Challenges
TBD
County of Lake
The County of Lake proposed using grant funds to hire consultants to process cannabis permits, including completing environmental reviews, CEQA analysis, and presentations to the Planning Commission.
Grant results
- Total amount disbursed: $1,680,914.40
- Total expenditures: $373,527.17
- Total returned to DCC: $1,307,387.23
- 20% determination/closeout status: Grant closeout initiated – Undisbursed
Achievements
The County of Lake successfully reduced the cannabis permitting backlog by engaging external consultants to assist with permit processing, environmental reviews, CEQA analyses, and Planning Commission presentations. This support helped the County process cannabis permits more efficiently, including permits for applicants participating in the County’s Local Equity Program.
Challenges
The County of Lake faced challenges due to unclear and delayed guidance from DCC regarding eligible expenditures, resulting in certain costs being deemed ineligible, including expenses incurred before the agreement execution, travel expenses, and expenses associated with provisional licenses. The County maintains that these expenses were allowable based on the grant agreement, guidelines, and supporting documentation, and that DCC did not provide timely notice of the additional eligibility requirements.
City of Long Beach
The City of Long Beach proposed using grant funds to hire staff and consultants to assist with streamlining local permitting processes and processing applications, including preparation of CEQA documents, equity applicant eligibility, building and safety plan reviews, and inspections. The City will also use grant funds for website design, technology improvements, and training to assist applicants. This is intended to strengthen communication with equity applicants, including: incorporating automated emails, clear step-by-step instructions, and workshops for paperwork completion.
Grant results
- Total amount disbursed: $3,147,818.74
- Total expenditures: $0.00
- Total returned to DCC: $3,147,818.74
- 20% determination/closeout status: Did not request
Achievements
The City of Long Beach successfully hired staff and contractors who provided additional expertise to streamline and expedite business license applications, CEQA reviews, plan checks, and facility inspections, helping meet state licensing deadlines and support equity applicants seeking to establish cannabis businesses.
Challenges
The City of Long Beach faced challenges due to DCC’s narrow interpretation of the approved grant application, burdensome amendment process, and changing reporting requirements, which caused confusion and delays and limited the City to utilizing the grant funds.
City of Los Angeles
The City of Los Angeles proposed using grant funds to hire additional personnel to assist licensees with completing locally-administered processes to achieve annual licensure and administer CEQA processes, including document review and preparation of environmental documents. This will include updates to the City’s environmental assessment to allow for ministerial rather than discretionary action under CEQA, streamlining future application processing.
The City will also use grant funds to establish new positions dedicated to CEQA reviews and local annual licensing processes and partially fund new positions associated with compliance administrative functions related to grant and contract management.
Grant results
- Total amount disbursed: $17,849,888.00
- Total expenditures: $17,405,968.08
- Total returned to DCC: $443,919.92
- 20% determination/closeout status: Did not request
Achievements
LJAG funding enabled the City of Los Angeles to successfully implement the City’s Annual License Application process by supporting the transition of provisional licensees to annual licensure, providing technical assistance and fee waivers to reduce barriers for applicants, enhancing internal systems and workflows, and facilitating the transition of more than 1,000 provisional cannabis licenses to annual licenses from the original 1,180 temporary licenses that existed at the time of the grant award.
Challenges
The City of Los Angeles faced challenges due to implementation of the grant program was impacted by delays in adoption of necessary local ordinance as well as administrative challenges in the amendment process and evolving guidance on eligible expenditures, requiring DCR to revise its implementation strategy and timeline while working closely
with DCC to ensure compliance and maximize the use of grant funds.
County of Mendocino
The County of Mendocino proposed to use grant funds to create direct funding opportunities for commercial cannabis applicants and permit holders.
Grant results
- Total amount disbursed: $17,586,406.62
- Total expenditures: $15,139,344.78
- Total returned to DCC: $2,447,061.84
- 20% determination/closeout status: Awarded
Achievements
Mendocino County has successfully achieved all goals though the LJAG program and have executed 272 individual direct grant agreements with provisional licenses, distributing a total of $4,906,626.65 in support. From the 608 provisional commercial cannabis cultivation licenses, only 16 provisional licenses remain with 575 annual licenses issued.
Challenges
Mendocino County faced operational challenges, including internal staffing and leadership transitions but remained committed to advancing the program’s outcome. Notably, in June 2023, the DCC assumed the role of Lead Agency for CEQA review, which significantly altered the local environmental review process.
County of Monterey
The County of Monterey proposed using grant funds to conduct a programmatic-level CEQA analysis, which would expedite applications and streamline required reviews. The funds would also be used to conduct ongoing CEQA reviews, amend land-use regulations, and provide direct funding to licensees to meet local requirements. The City will also use grant funds to hire consultants and/or staff to conduct planning and building permits, implement a cannabis equity program, and manage grant funding.
Grant results
- Total amount disbursed: $1,737,035.00
- Total expenditures: $1,430,326.87
- Total returned to DCC: $306,708.13
- 20% determination/closeout status: Awarded
Achievements
Through the LJAG Program, Monterey County supported cannabis operators by providing $886,400 in pass-through funds to 46 provisional license holders to meet regulatory deadlines. It also reimbursed $436,285 to 25 sites for road and traffic mitigation improvements near cannabis farms. In addition, the Program funded upgrades to the online permitting system to make the application process more efficient.
Challenges
The main challenge Monterey County faced in administering the LJAG program was providing pass-through funds to provisional license holders, as many license holders felt the paperwork outweighed the smaller grant amounts they were getting. When funding increased to $51,594 in FY 2024–25, interest improved, with ten applicants applying within four months. Since the program began in 2022, only 46 of the original 423 provisional license holders used the funds, and most provisional license holders are no longer in business.
County of Nevada
The County of Nevada proposed using grant funds to prepare CEQA documents, implement environmental mitigation measures, review applications and provide technical support to applicants. This may include hiring consultants and/or additional temporary or contract staff.
Grant results
- Total amount disbursed: $976,950.40
- Total expenditures: $113,548.45
- Total returned to DCC: $863,401.95
- 20% determination/closeout status: Did not request
Achievements
Nevada County successfully achieved the program’s primary objective by supporting the transition of all 137 active provisional cannabis licensees to annual licenses, helping establish a compliant, stable, and fully regulated cannabis market.
Challenges
Nevada County faced challenges due to extended amendment review periods and delays in receiving timely responses from DCC, which limited the County’s ability to fully deploy grant funds during the early phases of the program and compressed the timeline for completing certain activities.
City of Oakland
The City of Oakland proposed using grant funds to expedite cannabis permitting processes and provide additional support to equity applicants and licensees. This includes additional staff and technology for application review and proactive issue identification. It also includes additional capital directed to equity operators through grants, and staff and consultants to administer technical and legal assistance provided to equity applicants.
Grant results
- Total amount disbursed: $7,924,016.00
- Total expenditures: $4,529,882.24
- Total returned to DCC: $3,394,133.76
- 20% determination/closeout status: Denied
Achievements
LJAG funding enabled the City of Oakland to expedite the cannabis permitting process by supporting staff, technology, and interdepartmental application reviews, while providing equity applicants with technical assistance, legal assistance, and grant and loan funding, resulting in the transition of 24 of the initial 123 provisional cannabis licenses to annual licenses during the grant period.
Challenges
Key program challenges the City of Oakland faced during the term of the agreement that impacted the outcomes as defined in the scope of work and the utilization of funds awarded were lack of capital as the number one barrier the equity operators faced affecting their ability to complete permitting, achieve compliance, and sustain their businesses. The jurisdiction experienced delays and denials related to a budget amendment and requests to allow rent as an eligible expense, limiting its ability to provide additional financial assistance to equity and general applicants and reducing overall program impact.
City of Sacramento
The City of Sacramento proposed using grant funds to hire consultants to prepare and complete CEQA Notices of Exemption, streamline and harmonize local permitting requirements to support the transition into annual licensure, provide assistance for navigating local and state permitting process, publicize key deadlines for provisional licensees, use GIS mapping to local premises zoned and eligible for a Conditional Use Permit (CUP), and aggregate information on cannabis premises across multiple permitting offices, among other contributions.
Grant results
- Total amount disbursed: $4,629,293.47
- Total expenditures: $310,723.11
- Total returned to DCC: $4,318,570.36
- 20% determination/closeout status: Did not request
Achievements
The City of Sacramento has achieved its goal of ensuring cannabis license holders in our jurisdiction have transitioned from provisional to annual state licenses, including a consultant to review CEQA exemptions and technology advances to improve operational systems.
Challenges
Jurisdiction did not provide achievements.
City of San Diego
The City of San Diego proposed using grant funds to complete CEQA requirements early in the local permitting process and to consolidate multiple existing databases with permittee information, streamline data gathering, and provide real-time date on compliance to facilitate timely permit applications. The City will also use grant funds to hire consultants to aid equity applicants with local permitting processes, for their forthcoming equity program.
Grant results
- Total amount disbursed: $611,408.80
- Total expenditures: $116,845.56
- Total returned to DCC: $494,563.24
- 20% determination/closeout status: Grant closeout initiated – Undisbursed
Achievements
In the LJAG closeout memorandum provided to the DCC on October 29, 2024, the City of San Diego noted that the jurisdiction did not achieve any goals outlined in the agreement.
Challenges
The City of San Diego did not provide DCC with specific challenges, rather a suggestion for DCC to re-review former Biannual Reports, amendment requests, and State Audit report. Additionally, the City of San Diego noted that they did not track the provisional licensees they assisted with LJAG funds.
City and County of San Francisco
The City and County of San Francisco proposed using grant funds to create new staff positions to process cannabis permits more quickly and efficiently, which both includes and will facilitate timely completion of local CEQA review processes. Creating faster local permitting processes is expected to assist equity applicants- in particular by shortening the amount of time that applicants must carry rent and overhead costs, while permitting processes are underway.
Grant results
- Total amount disbursed: $2,460,615.20
- Total expenditures: $1,553,864.63
- Total returned to DCC: $906,750.57
- 20% determination/closeout status: Did not request
Achievements
The City of San Francisco successfully supported DCC’s equity grant objectives and made consistent progress in transitioning provisional cannabis licenses to annual state licenses by coordinating with DCC and the Planning Department to advance CEQA reviews and the cannabis permitting process.
Challenges
The City of San Francisco encountered some challenges that impacted on our ability to fully optimize the use of funds. Specifically, delays in responses, occasional inconsistencies in instructions, and changes to reporting templates required additional time and coordination. Despite these hurdles, we remained committed to achieving the program goals and successfully advanced key deliverables.
City of Santa Rosa
The City of Santa Rosa proposed using grant funds to update their existing cannabis ordinance and CEQA review processes, increase applicant assistance through outreach and online tools, improve existing permit tracking software, and hire additional limited-term staff.
Grant results
- Total amount disbursed: $620,672.80
- Total expenditures: $135,332.79
- Total returned to DCC: $485,340.01
- 20% determination/closeout status: Grant closeout initiated – Undisbursed
Achievements
The City of Santa Rosa successfully developed online tools and checklists, launched a new website and permitting database, improved cannabis data reporting, and hired a Senior Planner, while significantly reducing provisional licenses from 76 in 2021 to 10 by June 2024.
Challenges
The City of Santa Rosa experienced challenges completing the cannabis ordinance update, applicant webinars and workshops, an online survey of applicant needs, and tax data integration.
County of Sonoma
The County of Sonoma proposed using grant funds to address permit application backlogs and increase the efficiency of the CUP process. This includes hiring additional staff to process CUP applications and improving external communication about the permitting process through additional guidance materials.
Grant results
- Total amount disbursed: $926,418.40
- Total expenditures: $758,450.28
- Total returned to DCC: $167,968.12
- 20% determination/closeout status: Denied
Achievements
Jurisdiction was able to successfully complete all goals and deliverables detailed in the agreement.
Challenges
Jurisdiction did not provide challenges.
County of Trinity
The County of Trinity proposed using grant funds to facilitate processing of local cannabis licenses, land-use permits, site-specific inspections and verification, and CEQA determinations for environmental compliance. This includes hiring additional staff and engaging consultants to increase capacity and improve technical support for applicants.
Grant results
- Total amount disbursed: $3,293,866.65
- Total expenditures: $2,952,920.12
- Total returned to DCC: $340,946.53
- 20% determination/closeout status: Awarded
Achievements
Trinity County used LJAG funding to strengthen its cannabis licensing program by increasing staffing, improving environmental review processes, enhancing applicant support, upgrading permitting systems, and successfully transitioning 99% of active provisional licenses to annual licensure.
Challenges
Trinity County faced challenges including staff turnover, budget amendment approval delays, changing regulatory requirements, complex reporting processes, environmental review delays, incomplete applications, financial constraints among operators, and shifting industry conditions, which extended processing timelines.
Grant criteria
The Budget Act set basic criteria for use of the funds. The grant application included guidelines and required forms.
Reporting forms:
Please contact Office of Grants Management for reporting forms at Grants@cannabis.ca.gov
Grant resources
Grant timeline
| Event | Date |
|---|---|
| Notice of Funding Availability Release with Draft Guidelines | September 14 – September 27, 2021 |
| Grant Guidelines and Request for Proposals Published | September 30, 2021 |
| Application Submission Period Opens | October 8, 2021 |
| Questions and Answers Period Due Date | October 8, 2021 |
| Questions and Answers Posted | October 15, 2021 |
| Deadline to Submit Applications | November 15, 2021 |
| Grant Award Notification | December 2021 |
| Last Day for Grant Funding Expenditures | March 31, 2025 |
Contact us
For questions about the grant program, email grants@cannabis.ca.gov.
For media inquiries, email press@cannabis.ca.gov.