California Announces New Funding Program to Strengthen Cannabis Industry

California will offer millions in grants to expand access to the regulated cannabis industry, the state announced last week.

The Department of Cannabis Control said the grant program will be the first of its kind in the United States and will “provide resources for local jurisdictions to expand access to regulated cannabis products to underserved areas.”

The state said that “areas where national surveys identify high levels of cannabis use but have little to no access to legal retail cannabis outlets” will be prioritized for the Local Jurisdiction Retail Access Grant and that the program “by prioritizing will provide incentives for local Best practices are designed to create programs that support equity operators and leverage existing licensing and permitting practices.”

The department said the “$20 million grant program will initially award up to $10 million in grants through June 20, 2023,” with an additional $10 million to “past awardees in issuing licenses.” be made available after June 30th.

More than six years after local voters approved a measure to legalize recreational cannabis and paved the way for a regulated market, California’s state-sanctioned cannabis industry has hit hard times.

In 2021, the value of California’s legal cannabis crop fell 40%, according to a report released in November, a decline attributed to the proliferation of the illicit cannabis market in the state.

This trend has legislators and regulators alike concerned and looking for solutions.

A Democratic lawmaker, Matt Haney, introduced a bill earlier this month aimed at improving the experience at the state’s cannabis cafes by allowing these licensed consumption lounges to serve food and beverages as well as host live events.

“If we want this legal industry to survive in California, we have to change these laws. They’re losing to the illegal cannabis industry, and one thing the legal cannabis small business can offer is an experience,” Haney told the Los Angeles Times. “Cannabis companies have told us that unless the laws change, they may have to close their doors. The regulations that forbid them from offering other products like groceries are a huge liability.”

In announcing the new funding program last week, the state’s Department of Cannabis Control said that lack of access “to California’s legal cannabis market threatens consumer safety and perpetuates the illicit market.”

“By financially supporting the creation of retail licensing pathways and providing incentives to ensure consumers have access to legal retail outlets, these grant funds are intended to help reduce illegal market activity and provide consumers with access to legal retail outlets and regulated products.” , it is called in the announcement.

Nicole Elliott, the director of the California Department of Cannabis Control, said that expanding access “to the California retail cannabis market is an important step in protecting consumer safety and supporting a balanced market.”

“The Retail Access Program is ultimately aimed at encouraging legal retail outlets in areas where existing consumers do not have convenient access to regulated cannabis,” Elliott said.

The department said the program “marks the first time a state has offered grants to facilitate access to retail cannabis licensing at the local government level.”

“With over 60 percent of California jurisdictions not offering local retail cannabis licenses, the Retail Access Grant Program can provide much-needed support as cities and counties work with the state to ensure consumers have adequate access to regulated cannabis ‘ the department said in the announcement.

“Of the 33 counties in California that do not currently offer cannabis licenses, there are nine counties where rates of cannabis use are significant, despite having little or no licensed cannabis dealership.”