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 (Department) announces the availability of $100 million in funding for the Local Jurisdiction Assistance Grant Program (Grant Program). This program dedicates funding to local jurisdictions with the greatest needs to transition provisional licensees to annual licenses. The Grant Program is authorized by the Budget Act of 2021, Item 1115-101-0001 – For local assistance, found in Senate Bill 129 (2021).
The Medicinal and Adult-Use Cannabis Regulation and Safety Act (Act) contains specific timelines for when the Department can no longer issue or renew provisional licenses. Therefore, provisional license holders must complete the annual license process by certain dates or face a potential gap in licensure. Currently, approximately 75 percent of California’s commercial cannabis licenses are provisionally licensed.
Local jurisdictions eligible to receive grant funding represent those with significant numbers of provisional licenses who are legacy and equity applicants, and provisional licensees that are more likely to have arduous environmental compliance requirements associated with CEQA. The Grant Program is allocating $100 million on a one-time basis to aid local jurisdictions and their provisional licensees in completing CEQA compliance requirements necessary to achieve annual licensure. Grant Program funds may also be used to aid local jurisdictions in more expeditiously reviewing provisional licensee local requirements. Allowable uses are intended to encourage local jurisdictions to administer grant funds in ways that allow the Department to transition provisional