Nearly two-thirds of California cities and counties do not allow the establishment of any regulated cannabis retailers within their jurisdictions. This limits consumer access to regulated, tested cannabis and cannabis products.
Funding opportunity
The Retail Access Grant provides local governments with resources to develop and implement cannabis retailer licensing programs. Up to $20 million total funding is available, distributed in two phases.
A local jurisdiction (city or county) is eligible for funding if it both:
- Does not currently have a cannabis retail licensing program, and
- Has a plan to develop and implement a cannabis retail licensing program
Funding can be used for:
- Support of equity applicants and licensees
- Environmental reviews
- Permitting expenses
- Personnel costs
By providing this assistance to cities and counties, the Retail Access Grant aims to:
- Provide consumers with reliable access to regulated, tested cannabis
- Reduce demand in the illicit market
- Establish enough cannabis retail stores statewide to meet existing consumer demand
Funding rounds
Funding will be distributed in two phases:
- Phase I provides funding to support local jurisdictions in the development and implementation of a local cannabis retailer licensing program.
- Up to $10 million in total funding is available in Phase I, and awards will be announced by June 20, 2023.
- Phase II awards additional funding after the local jurisdiction issues cannabis retailer permits.
- At least $10 million in total funding is available; awards will be made for each cannabis retailer permit issued by a Phase I recipient, beginning on or after June 30, 2023.
Additional funding will be awarded in both phases of this grant program for local governments that adopt equity programs and issue cannabis retailer licenses to equity businesses.
Priority funding
This grant program prioritizes funding to local jurisdictions that:
- Propose to assist cannabis equity businesses
- Address gaps in consumer access to safe and regulated cannabis
- Plan to permit cannabis retailers through existing business permitting processes
Local jurisdictions that meet these criteria will be eligible for priority points. Applications with priority points will be processed first.
Priority Area: Equity licensing opportunities
DCC is committed to providing equity to communities harmed by past cannabis criminalization through local pathways to licensure and business success. Local jurisdictions that submit a plan to incorporate equity into their permitting process will be eligible for priority review.
Priority Area: Gaps in consumer access to legal cannabis
This grant program aims to provide consumers with better access to regulated, tested cannabis and reducing the need for consumers to turn to the illicit market. In 18 counties across the state, the proportion of licensed cannabis retail outlets is low compared to its share of consumer consumption:
- Amador County, Butte County, Contra Costa County, Fresno County, Glenn County, Kern County, Lassen County, Madera County, Orange County, Placer County, San Benito County, San Diego County, San Joaquin County, San Mateo County, Santa Clara County, Sutter County, Tehama County, Yuba County
Because cannabis consumers within these areas would benefit from expanded access to licensed cannabis, these counties – and the cities within them – will receive priority review should they apply for a grant and implement a permitting program.
Priority area: Existing business permitting pathways
The experience of local jurisdictions that have proactively regulated cannabis has shown that:
- Establishing cannabis-specific licensing programs can be resource and time intensive
- Utilizing existing permitting and review pathways can simplify cannabis permitting processes
To support local jurisdictions in quickly developing cannabis retailer licensing programs, priority review will be awarded to jurisdictions that:
- Propose to license cannabis businesses through existing business permitting process already in existence for non-cannabis businesses
- Propose to license only cannabis retail businesses that are eligible for categorical exemption under the California Environmental Quality Act (CEQA)
How to apply for grant funding
- Read the Grant Guidelines.
The Grant Guidelines have detailed information about the grant opportunity, requirements and application process. - Submit questions to DCC.
Questions about the grant program will be accepted until 5 p.m. on February 24, 2023. Email questions to grants@cannabis.ca.gov. - Read the Q&A.
Answers to the submitted questions will be posted on March 10, 2023. - Submit your grant proposal.
You can submit your grant application starting on March 10, 2023, until 5 p.m. on April 28, 2023. Email all application documents to grants@cannabis.ca.gov.
Read the grant materials
Grant Guidelines – Describes grant eligibility, requirements, and application process and includes anticipated contract terms.
Application documents
Include the following documents with your grant application:
- Application Cover Sheet (Form DCC-2625)
- Attachment A: Permitting Plan (Form DCC-2626)
- Attachment B: Budget Plan (Form DCC-2627)
Reporting and other forms
Use the following forms, where required by the grant program:
- Progress Report (Form DCC-2628) – Must be submitted each year by December 1
Timeline
| Event | Date* |
|---|---|
| Grant Guidelines and Application Instructions Published | February 14, 2023 |
| Questions and Answers Period Opens | February 14, 2023 |
Questions and Answers Period Due Date
| February 24, 2023 |
Questions and Answers Posted
| March 10, 2023 |
Phase I Application Submission Period Opens
| March 10, 2023 |
Phase I Last Day to Submit Applications
| April 28, 2023 |
| Phase I Grant Award Notification | Early June 2023 |
| Phase II Funding Becomes Available for Award | June 30, 2023 |
| Last Day for Grant Funding Expenditures | June 30, 2026 |
*Dates are tentative and subject to change.
About this funding
The grant program is authorized by the Budget Act of 2022, Item 1115-102-0001, found in Assembly Bill 178 (Ting, 2022).
Contacts
For questions about the grant program, email grants@cannabis.ca.gov.
For media inquiries, email press@cannabis.ca.gov.
Questions and answers
Eligibility
Who is eligible to apply for the Cannabis Local Jurisdiction Retail Access Grant?
Grant funds are available only to eligible local jurisdictions (city or county) located in California. A local jurisdiction is eligible if, as of February 14, 2023, it:
- Does not have a local cannabis retailer licensing program
- Has a plan to develop and implement a program to issue permits to cannabis retail businesses that establish within its jurisdiction
Is grant funding available for jurisdictions that currently issue permits for non-storefront (delivery) retail but prohibit storefront retail?
Grant funds are available only to eligible local jurisdictions that do not allow the establishment of cannabis retailers within the jurisdiction.
If a jurisdiction already allows the establishment of at least one type of cannabis retail within the jurisdiction, they are not eligible for grant funding.
If a jurisdiction allows cannabis retailers to deliver from outside the jurisdiction but prohibits retailers from being established within the jurisdiction, they are eligible for grant funding.
Can a person or entity who is not a local jurisdiction apply for grant funding?
No. Grant funds are available only to eligible local jurisdictions (city or county), as defined in the grant guidelines.
Eligible and ineligible uses of funds
Can grant funds be used for consultants?
Yes. Grant funds may be used for contractors or consultants directly involved in the jurisdiction’s development or implementation of the cannabis retailer licensing program.
Priority review
Can a jurisdiction qualify for the CEQA priority review point by conducting a programmatic environmental impact report, thereby negating the need for additional CEQA analysis for individual cannabis retail business projects?
No. To qualify for the priority review point for “local jurisdictions whose proposed retail program will license cannabis retail business projects only that are eligible for a categorical exemption under the California Environmental Quality Act (CEQA),” a local jurisdiction must commit to license cannabis retail business projects only that are eligible for a categorical exemption under CEQA. Applicable categorical exemptions are identified in Article 19 of the CEQA Guidelines. This does not include the development of a programmatic environmental impact report.
A jurisdiction that would not be eligible for this priority review point can still apply for the grant program. Separate from qualifying for this priority review point, local jurisdictions may nevertheless wish to consider other ways to streamline their CEQA review processes (which may include the use of a programmatic environmental impact report, if appropriate) to ensure that grant funds are used effectively and efficiently.
Can a jurisdiction qualify for the existing permitting pathways priority review point by utilizing existing permitting pathways for some aspects of cannabis retail licensure and utilizing novel permitting pathways for other aspects? For example, if a locality created a new cannabis permit available through a new cannabis department, but with an inspection and land use approval process that goes through existing permitting pathways.
No. The experience of local jurisdictions that have proactively regulated cannabis has shown that establishing cannabis-specific licensing programs can be resource and time intensive and that utilizing existing permitting and review pathways can simplify cannabis permitting processes. Therefore, this priority review point is reserved for jurisdictions that propose to license cannabis businesses solely through existing business permitting processes already in existence for non-cannabis businesses.
A jurisdiction proposing to create a new cannabis-specific permit through a new permitting pathway would not be eligible for this priority review point but can still apply for the grant program.
Application process
Will DCC provide technical assistance to applicants during the application period?
Yes. Applicants may contact the DCC Office of Grants Management at grants@cannabis.ca.gov with any questions.
Phase II funding
Can a local jurisdiction that did not apply for Phase I funding obtain Phase II funding for the issuance of retail licenses?
No. Only local jurisdictions that receive funding during Phase I are eligible to receive additional awards during Phase II.
Is there a separate application for Phase II funding?
Local jurisdictions that receive funding during Phase I are eligible to receive additional awards during Phase II, after the local jurisdiction has begun issuing licenses to cannabis retailers. The jurisdiction may request Phase II funding on an ongoing basis, as these licenses are issued.
To request Phase II funding, the jurisdiction must submit the Payment Request Form (Form DCC-2630). Phase II funding will only be issued after the locally-licensed business has submitted a complete state license application.
When does DCC count the number of permits a local jurisdiction has issued for purposes of determining Phase II awards?
Phase II funding will be awarded on an ongoing basis as local cannabis retailer licenses are issued. Approved Phase II funding awards will be processed for payment in September and April of each year of the grant program. Phase II funding will be awarded until the funds are depleted, or the end of the grant program.
Equity bonus funding
If a jurisdiction is awarded equity bonus funds in Phase I, are 80% of these funds also distributed in the first Phase I payment?
No. Equity bonus funding during Phase I will be distributed with the second payment, along with the remaining 20% of the initial Phase I award. The second payment will be distributed after the jurisdiction has established the cannabis retail licensing program and the cannabis equity program. However, a jurisdiction may use the funds distributed with the second payment for eligible expenses incurred at any time after the start of the grant term, including prior to second-payment fund issuance.
