Agenda — Cudahy City Council, February 21, 2023 (part 2 of 6)

44 agreement in its sole and absolute discretion. The city manager is authorized to develop and promulgate policies and procedures consistent with the intent and spirit of this chapter concerning the applications, application process, including, but not limited to, the information required of applicants, and application review procedures, which shall inform the administration and protocols to be used and followed by the city in the application and hearing processes.

SECTION 18. Section 5.20.050 (Business standards) of Chapter 5.20 (Cannabis Permitting and Regulation) of Title 5 (Business Licenses and Regulations) of the City Municipal Code is hereby repealed in its entirety and amended to read as follows:

Commercial cannabis production activity within the city shall be in conformance with the standards set forth in this section, in addition to those additional standards that may be imposed through a negotiated development agreement. The city manager is hereby authorized to formulate and impose additional business requirements applicable to cannabis permittees in furtherance of the public health, safety, and/or welfare.
(1) Commercial cannabis production activity shall only be allowed upon application and issuance of a cannabis permit and a development agreement by the city in accordance with the criteria and process set forth in this chapter and city code. (2) Zoning and Land Use.
(a) Operation Near Schools, Day Cares, Youth Centers, and Places of Religious Assembly. Following the enactment of this chapter, no new premises shall be established, developed, or operated within 600 feet of a day care center, youth center, or public or private school providing instruction in kindergarten or any grades one through 12 that is in existence at the time the cannabis permit is issued.

All distances shall be measured in a straight line, without regard to intervening structures, from the nearest point of the building or structure in which the premises are, or will be, located to the nearest property line of those uses described in this subsection. The restrictions set forth in this subsection shall not apply to premises which operate within 600 feet of any day care center, youth center, place of religious assembly, or public or private school providing instruction in kindergarten or any grades one through 12, if such premises existed prior to the establishment of the applicable day care center, youth center, or school that is located within 600 feet of such premises.
(b) Co-Location. All commercial cannabis production activity shall fully comply with all mandates set forth in state law. To the extent not prohibited under state law, a cannabis permittee may be located within the same unit of the same premises or building, facility or real property parcel as another cannabis permittee. (c) Development Agreement.
(i) Prior to commencing operations, all cannabis permittees shall enter into a development agreement with the city.
(ii) All premises shall be operated in accordance with the terms of the applicable development agreement for the specified parcel of real property (or sub-portion thereof) upon which the premises is located.

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45 (iii) Except as specified, commercial cannabis production activities shall not exceed the square footage authorized pursuant to the applicable development agreement.
(iv) All premises shall be located in the permit zone pursuant to the applicable development agreement.
(3) Commercial cannabis production activity is allowed only within fully enclosed and secure structures that are inaccessible to minors.
(4) Signage for any business must be applied for through the city’s planning division, which shall require review and approval prior to installation. Business identification signage shall be limited to that needed for identification only, and shall not contain any logos or information that identifies, advertises, or lists the services or the products offered. No cannabis permittee shall advertise by having a person holding a sign and advertising the business to passersby, whether such person is on the premises of the cannabis permittee or elsewhere, including, but not limited to, the public right-of-way. (5) From any public right-of-way, there shall be no visible evidence of the consumption of any cannabis products. Commercial cannabis production activity shall not adversely affect the health or safety of the nearby residents by creating dust, glare, heat, noise, smoke, traffic, vibration, odor or other impacts, and shall not be hazardous due to use or storage of materials, processes, products, or wastes.
(6) Hours of operation limits, if any, shall be specified in terms mutually agreed upon in a development agreement.
(7) All cannabis and cannabis products shall be kept in a secured manner during all business and nonbusiness hours.
(8) All commercial cannabis production activities shall operate within premises that are compliant with all applicable state laws and local laws. (9) Cannabis permittees must pay all applicable taxes pursuant to all federal, state, and local laws, including, but not limited to, fees relating to infrastructure improvements within the permit zone.
(10) Cannabis permittees shall provide sufficient odor-absorbing ventilation and exhaust systems so that odors outside the applicable premises are not a nuisance on any adjacent property or public right-of-way. Any violation of this section shall be remedied within 30 days of the cannabis permittee receiving notice of such violation. (11) Cannabis permittees shall utilize product and inventory tracking software and accounting software that is consistent with reasonable business practices within the industry and the seed-to-sale tracking software being developed by the state. (12) Except permitted in this chapter, on-site smoking, ingestion, or consumption of cannabis or cannabis products shall be prohibited on premises. Except to the extent otherwise permitted pursuant to this chapter, the entrance of the premises shall be clearly and legibly posted with a notice indicating that smoking, ingesting, or consuming cannabis, cannabis products or alcohol on such premises is prohibited.

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46 (13) Signage for all premises shall be in compliance with the city’s sign code and application for all signs must be submitted to the city’s planning division and comply with its signpermitting protocol. (14) Alcoholic beverages and tobacco shall not be sold, stored, distributed, or consumed on the premises. Cannabis permittees shall not hold or maintain a license from the State Department of Alcohol Beverage Control to sell alcoholic beverages, or operate a business that sells alcoholic beverages or tobacco with respect to the premises. In addition, alcohol shall not be provided, stored, kept, located, sold, dispensed, or used on the premises.
(15) Physician services shall not be provided at any premises. (16) The premises shall fully comply with all applicable rules, regulations, and laws, including, but not limited to, zoning and building city codes, the city’s business license ordinances, the Revenue and Taxation Code, the Americans with Disabilities Act, and MAUCRSA. (17) Each cannabis permittee shall provide the city manager, or the city manager’s designee, with the name, phone number, facsimile number, and email address of an on-site representative of such cannabis permittee to whom the city and the public can provide notice if there are any operational problems associated with such cannabis permittee’s premises. Each cannabis permittee shall make reasonable and good faith efforts to encourage residents and the public to call this representative to resolve any operational problems before any calls or complaints are made to the city or law enforcement. (18) All cannabis permittees must comply with the following security requirements:
(a) General Security Requirements.
(i) Security cameras shall be installed and maintained in good working condition and used in a format approved by the city manager. The cameras shall be in use 24 hours per day, seven days per week. The areas to be covered by the security cameras include areas as determined by the city manager, including, but not limited to, the area in which the primary commercial cannabis production activity occurs, e.g., the cultivation area for a cultivator.
(ii) The premises shall be armed with a reliable commercial alarm system that is operated and monitored by a security company or alarm business in a manner satisfactory to the city manager.
(iii) Entrance to any storage areas shall be locked at all times and under the control of staff of the cannabis permittee.
(iv) The business entrance(s) and all window areas shall be illuminated during evening hours. The applicant shall comply with the city’s lighting standards regarding fixture type, wattage, illumination levels, shielding, etc., and secure the necessary approvals and permits, as necessary.

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47 (v) All windows on the premises shall be appropriately secured with all cannabis and cannabis products securely stored.
(vi) Each cannabis permittee shall implement track and trace protocols, as noted above in this section, in order to prevent diversion of cannabis or cannabis products.
(vii) All waste and disposal containers shall be locked at all times and stored in a secure area and, at all times, under the control of the cannabis permittee. (b) Security Alarm Systems – Minimum Requirements.
(i) Each premises shall have a security alarm system installed by a licensed alarm company on all perimeter entry points and perimeter windows. (ii) Each premises must ensure that its location is continuously monitored.

Premises may engage the services of outside vendors to fulfill this requirement, such as a private security firm.
(iii) Each premises shall maintain up-to-date and current records and existing contracts on the premises that describe the location and operation of each security alarm system, a schematic of security zones, the name of the licensed alarm company, and the name of any vendor monitoring the premises.
(c) Lock Standards. At a minimum, all points of ingress and egress shall be secured with commercial-grade, nonresidential door locks.
(d) Video Surveillance Requirements.
(i) Prior to exercising the privileges of a cannabis permit issued under this chapter, an applicant must install fully operational video surveillance and camera recording system. The recording system must record in digital format and meet the requirements outlined herein.
(ii) All video surveillance records and recordings must be stored in a secure area that is only accessible to the management staff of the cannabis permittee.
(iii) Video surveillance records and recordings must be made available upon request to the city manager or designee for a purpose authorized by this chapter or for any other state or local law enforcement purpose. (iv) Video surveillance shall be held in confidence by all employees and representatives of the city manager, except that the city manager may provide such records and recordings to any state or local law enforcement agency for any purpose authorized under this chapter for any state or local law enforcement purpose.
(v) A sign shall be posted in a conspicuous place near each point of public access, which shall not be less than 12 inches wide and 12 inches long,

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48 composed of letters not less than one inch in height, stating “All Activities Monitored by Video Camera” or “These Premises Are Being Digitally Recorded” or otherwise advising all persons entering the premises that a video surveillance and camera recording system is in operation and recording all activity as provided in this section.
(vi) The premises shall utilize video surveillance equipment and a camera system that shall be remotely accessible by the city and Los Angeles County sheriff’s department.
(e) Video Surveillance Equipment.
(i) Video surveillance equipment shall, at a minimum, consist of digital or network video recorders, cameras capable of meeting the recording requirements described in this section, video monitors, digital archiving devices, and a color printer capable of delivering still photos. (ii) All video surveillance systems must be equipped with a failure notification system that provides prompt notification to a cannabis permittee of any prolonged surveillance equipment interruption and/or the complete failure of the surveillance.
(iii) Cannabis permittees are responsible for ensuring that all surveillance equipment is properly functioning and maintained so that the playback quality is suitable for viewing and the surveillance equipment is capturing the identity of all individuals and activities in the monitored premises. (iv) All video surveillance equipment shall have sufficient battery backup to support a minimum of four hours of recording in the event of a power outage.
(f) Placement of Cameras and Required Camera Coverage.
(i) Camera placement shall be capable of identifying activity occurring within 20 feet of all points of ingress and egress and shall allow for the clear and certain identification of any individual and activities on the premises. (ii) All entrances and exits to the premises shall be recorded from both indoor and outdoor vantage points.
(iii) The system shall be capable of recording all predetermined surveillance areas in any lighting conditions. If the premises has a medicinal cannabis cultivation area, a rotating schedule of lighted conditions and zeroillumination can occur as long as ingress and egress points to those areas remain constantly illuminated for recording purposes.
(iv) Areas where medicinal cannabis is grown, tested, cured, manufactured, or stored shall have a camera placed in the room facing the primary entry door at a height that will provide a clear, unobstructed view of activity without sight blockage from lighting hoods, fixtures, or other equipment.

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49 (v) Cameras shall also be placed at each location where weighing, packaging, preparation, tagging activities or other distribution preparation activities occur.
(vi) At least one camera must be dedicated to record the access points to the secured surveillance recording area.
(g) Location and Maintenance of Surveillance Equipment. (i) Surveillance recording equipment must be housed in a designated, locked, and secured room or other enclosure with access limited to authorized employees, the city manager or designee, Los Angeles County sheriff’s department, as authorized by this chapter, other state or local law enforcement purpose, and service personnel or contractors. (ii) Premises must keep a current list of all authorized employees and service personnel who have access to the surveillance system and/or surveillance system room on the premises. Premises must keep a surveillance equipment activity log on the premises to record all service activity, including the identity of all individuals performing services on system service, the service date and time, and the reason for such service to the surveillance system.
(iii) Off-site monitoring and video recording storage of the premises by an independent third party may be authorized so long as standards exercised at the remote location meet or exceed all of the standards applicable to onsite monitoring. (iv) Each premises located in a common or shared building must have a separate surveillance room/area that is dedicated to that specific premises.

The facility that does not house the central surveillance room is required to have a review station, printer, and map of camera placement on the premises. All minimum requirements for equipment and security standards as set forth in this section apply to such review station. (h) Video Recording Retention Requirements.
(i) All camera views of all recorded areas must be continuously recorded 24 hours a day.
(ii) All surveillance recordings must be kept for a minimum of 30 days and be in a format that can be easily accessed for viewing. Video recordings must be archived in a format that ensures authentication of the recording as legitimately captured video and guarantees that no alteration of the recorded image has taken place.
(iii) The surveillance system or equipment must have the capabilities to produce a color still photograph from any camera image, live or recorded, of the premises.

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50 (iv) The date and time must be embedded on all surveillance recordings without significantly obscuring the picture.
(v) Time is to be measured in accordance with the official United States time established by the National Institute of Standards and Technology and the U.S. Naval Observatory at www.time.gov.
(vi) After the 30-day surveillance retention schedule has lapsed, surveillance video recordings must be erased or destroyed prior to being discarded or disposed of for any other purpose. Surveillance video recordings shall not be destroyed if the cannabis permittee knows or should have known of a pending criminal, civil, or administrative investigation or any other proceedings for which the recording may contain relevant information. (i) Other Records. All records applicable to the surveillance system and cannabis tracking system shall be maintained on the premises. At a minimum, premises shall maintain a map of the camera locations, directions of coverage, camera numbers, surveillance equipment maintenance activity log, user authorization list and operating instructions for the surveillance equipment. (19) Audit. Each cannabis permittee shall maintain accurate books and records, in an electronic format, which detail all revenues and expenses of the business, including, but not limited to, all assets and liabilities. On no less than an annual basis, or at any time upon reasonable request of the city, each cannabis permittee shall file a sworn statement detailing business activity during the previous 12-month period (or shorter period based upon the timing of the request). The statement shall include gross sales for each month and all applicable taxes and fees paid or due to be paid. On an annual basis, each owner and operator shall submit to the city a financial audit of the business’s operations conducted by an independent certified public accountant. Each cannabis permittee shall be subject to a regulatory compliance review and financial audit as determined by the city manager or designee.
(20) Inspections. The city manager, or designee, or Los Angeles County sheriff’s department shall have the right to enter all premises from time to time unannounced during a cannabis permittee’s hours of operation for the purpose of making reasonable inspections to observe and enforce compliance with this chapter, to inspect and copy records required to be maintained under this chapter, or to inspect, view, and copy recordings made by security cameras, all without requirement of a search warrant, subpoena, or court order, and subject to appropriate fees, as specified in the development agreement, or adopted by the city.

SECTION 19. Section 5.20.060 (Application and fee requirements) of Chapter 5.20 (Cannabis Permitting and Regulation) of Title 5 (Business Licenses and Regulations) of the City Municipal Code is hereby repealed in its entirety and amended to read as follows:
(1) All applicants wishing to obtain a cannabis permit from the city shall file an application with the city upon a form approved by the city manager and shall pay a permit application fee as established by the city. The fee may vary depending on the type of cannabis permit.

The city manager or designee may require and conduct background checks, as necessary, to process and evaluate cannabis permit applications.

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51 (2) Prior to operating in the city, each cannabis permittee shall timely and fully pay all fees associated with the establishment of commercial cannabis production activity. The fees shall be as set forth in the schedule and fees and charges established by the city council, including, but not limited to, the following:
(a) Application fee for accepting a registration application, due and payable in full at the time an application is submitted;
(b) Processing fee for the cost to the city of processing an application and reviewing, investigating, and scoring each application in accordance with any evaluation system to determine eligibility for issuance of a cannabis permit, due and payable in full at the time a registration application is submitted; (c) Permit issuance fee for the cost to the city of preparing a development agreement, planning commission and city council review of the development agreement and the cannabis permit, and preparation and issuance of the cannabis permit, as authorized by the cannabis permit;
(d) Amended registration fee for the cost to the city of reviewing amendments or changes to the registration form previously filed on behalf of an applicant, due and payable in full at the time amendments or changes to any cannabis permit form are submitted to the city;
(e) Permit renewal fee for the cost to the city of processing an application to renew a cannabis permit, due and payable in full at the time application is made to renew a cannabis permit; and
(f) Any fees set forth in the applicable development agreement.

SECTION 20. Section 5.20.070 (Permit conditions) of Chapter 5.20 (Cannabis Permitting and Regulation) of Title 5 (Business Licenses and Regulations) of the City Municipal Code is hereby repealed in its entirety and amended to read as follows:
(1) A cannabis permit application may be denied and not awarded by the city if:
(a) The applicant or the applicant’s agent(s) has made one or more false or misleading statements or omissions in the application or during the application process. (b) The proposed premises or commercial cannabis production activity at the premises is not allowed by state law or city law.
(c) The applicant is not a legal representative of the proposed cannabis permittee. (d) The applicant or any of its officers, directors, owners, managers, or employees is under 21 years of age.
(e) The applicant’s facility or its location is in violation of any building, zoning, health, safety, or other provision of this chapter or of any state or local law that substantially affects the public health, welfare, safety, or morals, or the facility or its location is not permitted in the proposed area, or the issuing or continuation of a cannabis permit would be contrary to the public health, welfare, safety, or morals.

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52 (f) The applicant or any of its officers, directors, owners, managers, or employees has been sanctioned by the city, state, or any county for unauthorized cannabis activities or has had a registration revoked under this chapter in the previous three years.
(g) The applicant or the applicant’s agent(s) has engaged in unlawful, fraudulent, unfair, or deceptive business acts or practices.
(h) The applicant has not been or is not in good standing with the city related to other or previous business activities operated in the city.
(i) The applicant has not satisfied all requirement of this chapter. (j) For good cause, as defined in this chapter.
(2) A cannabis permit shall be awarded by the city to applicants in accordance with the process established by the city manager.
(3) Before a cannabis permit can be issued to an applicant, a cannabis permit fee must be paid to offset all related costs to the city, and the proposed premises must pass all applicable inspections.
(4) Each cannabis permit is subject to the conditions of approval in the applicable development agreement for the parcel of real property upon which the premises are located.
(5) Each cannabis permit is subject to any additional conditions that may be applied by the city at the time of issuance or renewal as necessary to properly regulate the applicable commercial cannabis production activities and to protect the public. (6) Each cannabis permittee shall execute a development agreement with the city to, among other things, fully reimburse the city for all fiscal impacts, costs, expenses, fees, and attorneys’ fees incurred by the city related to the cannabis permit and the related commercial cannabis production activity of such cannabis permittee. (7) Each cannabis permittee shall:
(a) Carry liability insurance in the amounts and types set by the city manager or the city manager’s designee, and name the city as an additional insured on all such insurance policies.
(b) Execute an indemnification agreement prepared by the city that fully indemnifies the city for all liabilities associated with the cannabis permit, the cannabis permittee’s commercial cannabis production activities, and any action taken by the cannabis permittee pursuant to this chapter. Such indemnification may be set forth in the applicable development agreement.
(c) Defend the city, at the cannabis permittee’s sole expense, in any action against the city or its agents, officers, officials, or employees associated with the cannabis permit, the cannabis permittee’s commercial cannabis production activities, or any

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53 action taken by the cannabis permittee pursuant to this chapter. The city may, at its sole discretion, participate in the defense of any such action, but such participation shall not relieve the cannabis permittee of its indemnification and reimbursement obligations.
(d) Reimburse the city for all costs, expenses, fees, and attorney’s fees incurred by the city related to any action against the city or its agents, officers, or employees associated with the cannabis permit, the cannabis permittee’s commercial cannabis production activity, or any action taken by the cannabis permittee pursuant to this chapter.
(8) A cannabis permittee shall keep the city and law enforcement updated with the names, addresses, and relevant criminal histories of the applicant’s agents. Relevant criminal histories shall include any drug-related or felony convictions, the nature of such offenses, and the sentences received for such convictions.
(9) Transfer.
(a) Any cannabis permittee may not sell, transfer, pledge, assign, grant an option, or otherwise dispose of his or her ownership interest in the commercial cannabis production business authorized pursuant to the cannabis permit. (b) In order for a cannabis permittee to transfer its cannabis permit to any person, such cannabis permittee must submit a transfer application to the city manager or city manager’s designee. The city manager or designee may create a transfer application and reasonable transfer application process, including mandatory fee, that cannabis permittees and the city must follow and pay for cannabis permit transfer requests. Each transfer request of a cannabis permit and the related transfer application is subject to the prior approval of the city manager or designee. (c) Applicants for cannabis permits must show proof of lawful possession of the applicable location. Evidence of lawful possession consists of properly executed deeds of trust, leases, and other written instruments, as may be accepted by the city.
(d) The location shall only be the geographical area that is specifically and accurately described in executed documents verifying lawful possession. No cannabis permittee is authorized to relocate to other areas or units within a building structure without first filing a change of location application and obtaining approval from the city, regardless of any possessory interest or right to possession to such additional space. No cannabis permittee shall add additional contiguous units or areas, thereby altering initially approved premises, without filing an application to modify the location on forms prepared by the city manager, including any applicable processing fee.
(e) No cannabis permittee is authorized to sublet any portion of any premises for any purpose unless all necessary forms and applications to modify the existing location to accomplish any subletting have been approved by the city.

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54 (f) The city manager shall develop and promulgate a process for the renewal of cannabis permits and the establishment of related fees, in accordance with applicable laws.
(10) To the fullest extent permitted by law, the city does not assume any liability, and expressly does not waive sovereign immunity, with respect to any commercial cannabis production activities, or for the other activities of any cannabis permittee or for any other activities taking place at the premises.
(11) Changing, Altering, or Modifying Location.
(a) After issuance of a cannabis permit, the cannabis permittee shall not make any physical change, alteration, or modification to the premises that materially or substantially alters the location, production estimates, and/or usage of the location from the plans originally approved under the applicable development agreement, without the prior written approval of the city council or designee. The cannabis permittee whose premises are to be materially or substantially changed is responsible for filing an application with the city in order to obtain requisite approval.
(b) Material or substantial changes, alterations, or modifications requiring approval include, but are not limited to, the following: (i) an increase or decrease in the total physical size or capacity of the location; (ii) the sealing off, creation or relocation of a common entryway, doorway, passage, or other such means of public ingress and/or egress, when such common entryway, doorway, or passage alters or changes limited access areas; or (iii) the installation or replacement of electric fixtures or equipment, the lowering of a ceiling, or electrical modifications made for the purpose of increasing power usage.
(c) The city council or designee may grant approval for the types of changes, alterations, or modifications described herein upon the filing of an application by the cannabis permittee and payment of any applicable fee, subject to any requisite amendments to the applicable development agreement. The cannabis permittee must submit all information requested by the city council or designee including, but not limited to, documents that verify the following: (i) the cannabis permittee will continue to have the exclusive possession of the premises, as changed, by ownership, lease, rental agreement, or other means, and sole control over all activities; and (ii) the proposed change conforms to any and all city restrictions related to the time, manner, and place of regulation of the applicable commercial cannabis production activity.

SECTION 21. Section 5.20.080 (Enforcement and appeals) of Chapter 5.20 (Cannabis Permitting and Regulation) of Title 5 (Business Licenses and Regulations) of the City Municipal Code is hereby repealed in its entirety and amended to read as follows:
(1) Any commercial cannabis production activity within the city in violation of this chapter is hereby declared to be unlawful and a public nuisance.
(2) Any person who willfully or knowingly (a) engages in a violation of this chapter or (b) owns, possesses, controls, or has charge of any parcel of real property in the city upon which a violation of this chapter is maintained and who has actual knowledge of such violation (or

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55 would have actual knowledge of such violation after a reasonable inquiry), shall be subject to the penalties and remedies provided by this chapter. (3) Any violation of this chapter shall constitute a separate offense for each and every day the violation occurs or persists.
(4) Any person in violation of any provision of this chapter or who causes another person to be in violation of this chapter shall have committed a misdemeanor. In addition to which shall be punishable by a fine of up to $1,000 for each violation and for each day the applicable violation continues to persist.
(5) Any person in violation of any provision of this chapter shall be punishable by an administrative fine of up to $1,000 per offense.
(6) Any material violation of this chapter or any other relevant city law or state law by a cannabis permittee, or a cannabis permittee’s agent, is grounds for suspending or revoking the relevant cannabis permit. In addition, the city manager or the city manager’s designee may suspend or revoke a cannabis permit, disqualify an applicant from the application process, or elect not to renew a cannabis permit if any of the following occur:
(a) The city manager or the city manager’s designee determines that the cannabis permittee has failed to comply with this chapter, any condition of approval, or any agreement or covenant as required pursuant to this chapter. (b) The cannabis permittee’s commercial cannabis production activities cease for more than 90 calendar days.
(c) Ownership of the cannabis permittee is changed without approval from the city. (d) The licensed commercial cannabis production activity moves from the licensed premises to a different, unauthorized location.
(e) The cannabis permittee fails to provide remote access to the security cameras to the city manager, the city manager’s designee, or Los Angeles County sheriff’s department, or fails to allow inspection of the security recordings, the activity logs, or of the premises by authorized city officials.
(7) Any decision regarding the suspension or revocation of a cannabis permit, disqualification of an applicant from the application process, or election not to renew a cannabis permit may be appealed to an independent neutral third-party administrative hearing officer appointed by the city manager or the city manager’s designee (the hearing officer). Said appeal shall be made by a notice of appeal from the person appealing within 30 days from the date of the city’s decision. The appeal shall be accompanied by a written verified declaration setting forth the basis for the claim that the city’s decision was improper. The hearing officer’s decision shall be final and binding upon the city and the appellant cannabis permittee or applicant. Alternatively, the city manager may provide for the appeal to be made to the city council, in lieu of a hearing officer. In such case, the city council’s decision shall be final and binding upon the city and the appellant. (8) These penalties and remedies are cumulative, and in addition to any other penalties and remedies available to the city.

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56 SECTION 22. Section 5.20.130 (Medicinal cannabis and cannabis products distribution) of Chapter 5.20 (Medical and Adult Use Commercial Cannabis) of Title 5 (Business Licenses and Regulations) of the City Municipal Code is hereby repealed in its entirety and amended to read as follows:
(1) Purpose. The purpose and intent of this section is to permit and regulate the distribution of cannabis and cannabis products between cannabis permittees in order to promote the health, safety, morals, and general welfare of the residents and businesses within the city.

The city is authorized to regulate this activity pursuant to state law. (2) Scope – Medicinal Cannabis Only. This section permits and regulates the commercial cannabis production activity of distribution of medicinal cannabis and cannabis products based within the city pursuant to state law, including MAUCRSA. Subject to the terms of this chapter, distribution permits may be issued by the city for the distribution of medicinal cannabis and cannabis products based within the city pursuant to and in accordance with state law, including MAUCRSA. Distribution of cannabis and cannabis products based within the city requires a development agreement with the city and must be located within the applicable permit zone.
(3) “Distribution activities” includes the receiving and releasing of cannabis and cannabis products for inspection, testing, and quality assurance, as required under applicable state law and such other activities as are permitted pursuant to state law. (4) A distribution permittee shall only distribute cannabis and cannabis products between cannabis permittees or to facilities or portions of facilities wholly controlled by such distribution permittee to the extent permitted by state law. (5) A distribution permittee shall inspect all cannabis and cannabis products received by it for quality assurance prior to distributing to any cannabis permittee, as required under applicable state law.
(6) In addition to the application requirements in CMC 5.20.060, a distribution permittee shall register with the city each location within the city where cannabis and cannabis products are stored for purposes of distribution activities within the city. (7) A distribution permittee shall distribute cannabis and cannabis products to cannabis permittees only after such cannabis and cannabis products have been inspected and quality tested in accordance with applicable state law, including MAUCRSA. (8) A distribution permittee may also hold any other permit type to the extent permitted by state law. To the extent permitted by state law, a distribution permittee that also holds another permit type may self-distribute its cannabis products.

SECTION 23. Section 5.20.020 (Definitions) of Chapter 5.20 (Medical and Adult Use Commercial Cannabis) of Title 5 (Business Licenses and Regulations) of the City Municipal Code is hereby amended by adding Subsection (xx) (Commercial production cannabis activity) to read as follows:

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57 (xx) “Commercial cannabis production activity” means all forms of commercial cannabis activity except delivery, dispensing, and retail sale(s). “Delivery”, “dispensing”, and “retail sale(s)” are defined in Section 20.88.040 of the CMC.

SECTION 24. Subsection (ll) (Retail delivery establishment) of Section 5.20.020 (Definitions) of Chapter 5.20 (Medical and Adult Use Commercial Cannabis) of Title 5 (Business Licenses and Regulations) of the City Municipal Code is hereby repealed in its entirety and amended to read as follows:
“Retail delivery establishment” means a location where cannabis or cannabis products are, either individually or in any combination, delivered pursuant to state law, including MAUCRSA.

SECTION 25. Section 5.20.120 of Chapter 5.20 (Medical and Adult Use Commercial Cannabis) of Title 5 (Business Licenses and Regulations) of the City Municipal Code is hereby amended by being retitled from “Medicinal cannabis and cannabis products retail delivery (retail delivery only, dispensaries prohibited)” to “Medicinal cannabis and cannabis products retail delivery as a legal nonconforming use”.

SECTION 26. Section 5.20.120 (Medicinal cannabis and cannabis products retail delivery (retail delivery only, dispensaries prohibited)) of Chapter 5.20 (Medical and Adult Use Commercial Cannabis) of Title 5 (Business Licenses and Regulations) of the City Municipal Code is hereby repealed in its entirety and amended to read as follows:

Effective immediately, the city shall cease issuing or renewing retail delivery permits pursuant to this chapter. The retail delivery of medicinal cannabis and cannabis products in compliance with state law, including MAUCRSA, pursuant to a retail delivery permit issued under this chapter may continue as a legal nonconforming use pursuant to Chapter 20.80 of the CMC so long as such retail delivery is limited to medicinal cannabis and cannabis products and otherwise in compliance with this chapter and Section 5.30.200 of the CMC.

SECTION 27. Chapter 5.20 (Cannabis Permitting and Regulation) of Title 5 (Business Licenses and Regulations) of the City Municipal Code is further amended by the addition of a new Section 5.20.160 entitled “Rights Reserved by the City”, which shall state as follows:

Provisions of this Chapter adopted by a vote of the People of the City shall not be construed to supersede, repeal, nullify, or otherwise render inapplicable or unenforceable any other provision of the City Municipal Code not in conflict with such, including but not limited to non-conflicting provisions of Title 15 through 20 of the City Municipal Code. In the event of any conflict or inconsistency between provisions of this Chapter that have been adopted by a vote of the People of the City and any provisions of the City Municipal Code adopted by the City Council, the provision of this Chapter shall govern and control but only to the limited extent of the conflict or inconsistency and no further. All such conflicts or inconsistencies shall be construed narrowly so as to allow for the broadest application of all other provisions of the City Municipal Code adopted by the City Council. The City Council further reserves and retains the right to amend or modify, in its sole and absolute discretion, any and all provisions of the City Municipal Code, excluding the provisions approved by a vote of the People of the City, to the extent any such amendments or modifications are not in conflict with the provisions of this Chapter that have been approved by a vote of the People of the City.

SECTION 28. Subsection Cannabis of Section 20.88.040 (C definitions) of Chapter 20.88 (Definitions) of Title 20 (Zoning) of the City Municipal Code is hereby amended to read as follows:

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58 Cannabis.
“Cannabis” means all parts of the Cannabis sativa linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. “Cannabis” also means the separated resin, whether crude or purified, obtained from cannabis. “Cannabis” also means marijuana as defined by Section 11018 of the California Health and Safety Code as enacted by Chapter 14017 of the Statutes of 1972. Cannabis does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. For the purpose of this zoning code, “cannabis” does not mean industrial hemp as that term is defined by Section 81000 of the California Food and Agricultural Code or Section 11018.5 of the California Health and Safety Code.
“Cannabis product” means cannabis that has undergone a process whereby the plant material has been transformed into a concentrate, or other cannabis derivative, including, but not limited to, concentrated cannabis, or an edible or topical product containing cannabis or concentrated cannabis and other ingredients. “Commercial cannabis activities” means the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery, or sale of cannabis and cannabis products.
“Commercial cannabis production activities” means all forms of commercial cannabis activity except delivery, dispensing, and retail sale(s). “Day care center” or “childcare facility”, for purposes of cannabis regulations only, means a facility, other than a family day care home, serving infant, toddler, preschool, and school age children licensed by the California Department of Social Services pursuant to Section 1596.951 of the California Health & Safety Code. Pursuant to the authority delegated by the State of California to the City under Section 26054(b) of the California Business & Professions Code, this definition of “day care center” under this Section 20.88.040 shall override the definition of “day care center” in MAUCRSA at Section 26001 of the California Business & Professions Code.
“Delivery” means the commercial transfer of cannabis or cannabis products to a customer. “Delivery” also includes the use by a retailer of any technology platform owned and controlled by the retailer.
“Dispensary” or “retailer” or “cannabis retailer” means a location where cannabis, cannabis products, or devices for the use of cannabis or cannabis products are offered, either individually or in any combination, for retail sale or cannabis business that dispenses cannabis, cannabis products, or devices for the use of cannabis or cannabis products, including a cannabis business that delivers cannabis and cannabis products. “Dispensing” or “retail sale(s)” means any commercial cannabis activity involving the retail sale of cannabis or cannabis products from a retailer.

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59 “MAUCRSA” means the California Medicinal and Adult-Use Cannabis Regulation and Safety Act, codified at California Health and Safety Code Sections 11018 et seq., 11362.7, California Business and Professions Code Section 26001 et seq., California Revenue and Tax Code Section 34010 and California Food and Agriculture Department Code Section 81000 et seq., as may hereinafter be amended.
“Place of religious assembly” means a facility used for religious worship and incidental religious education and/or activities, but not including (i) private schools as defined in this Chapter, (ii) facilities used for religious worship and incidental religious education located in residences or multitenant buildings, or (iii) facilities used for used solely for administrative functions incidental to religious worship and incidental religious education and/or activities.
“School”, for purposes of cannabis regulations only, means as evidenced by the California Department of Education school directory, a public school instructing children in grades kindergarten through 12, as authorized by the California Department of Education or a private school instructing children in grades kindergarten through 12 that has filed a verification of private school affidavit with the California Department of Education pursuant to Section 33190 of the California Education Code, excluding any private school in which education is primarily conducted in a private home. Pursuant to the authority delegated by the State of California to the City under Section 26054(b) of the California Business & Professions Code, this definition of “school” under this Section 20.88.040 shall override the definition of “school” used in MAUCRSA or Section 11362.768 of the California Health & Safety Code.
“Youth center” means, for purposes of cannabis regulations only, any public or private facility that is primarily used to host recreational or social activities for minors, including but not limited to private youth membership organizations or clubs, social service teenage club facilities, video arcades, or similar amusement park facilities (A) any public or private facility that is primarily used to host recreational or social activities for minors such as private youth membership organizations or clubs, social service teenage club facilities or (B) a park, playground, or recreational area specifically designed to be used by children that may have play equipment installed, including public grounds designed for athletic activities such as baseball, softball, soccer, or basketball or any similar facility located on a public or private school grounds, or on City, County, or parks. “Youth center” shall not include any private martial arts, yoga, ballet, music, or similar studio of this nature nor shall it include any private athletic training facility, pizza parlor, restaurant, video arcade, dentist office, or doctor’s office primarily serving children. Pursuant to the authority delegated by the State of California to the City under Section 26054(b) of the California Business & Professions Code, this definition of “youth center” under this Section 20.88.040 shall override the definition of “youth center” in MAUCRSA at Section 26001 of the California Business & Professions Code.

SECTION 29. Part 2 (Urban Agriculture Overlay Zone (-UA)) of Chapter 20.32 (Overlay Zones) of Title 20 (Zoning) of the City Municipal Code is hereby amended to read as follows:

PART 2 – Urban Agriculture Overlay Zone (-UA).

20.32.040: Intent and Purpose.

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60 It is the purpose and intent of the City to regulate commercial cannabis production activity in a manner that is consistent with state statutes and that promotes the health, safety, and general welfare of the residents and businesses within the community, while limiting any negative impacts.

It is also the intent of the City to encourage urban agriculture within the community. The Urban Agriculture Overlay Zone is established for this purpose.

20.32.050: Applicability.

Commercial cannabis production activities, except retail dispensaries that are open to the public for point-of-sale purchases, shall be allowed within the Urban Agriculture Overlay Zone pursuant to a development agreement adopted in accordance with the Development Agreement Law (Gov.

Code, § 65864 et seq.) and Chapter 20.84 PART 9 CMC. No such activities shall be permitted without a development agreement within or outside of the boundaries of the Urban Agriculture Overlay Zone. The City may approve or deny a development agreement in its sole discretion. In addition to the requirements in this chapter, all activities shall comply with Chapter 5.20 of the Municipal Code. Notwithstanding the above, cannabis retailers shall be a permitted use in the Urban Agriculture Overlay Zone without a development agreement but subject to both the described application criteria and Chapter 5.30.

20.32.060: Prohibitions.

Adult-use commercial cannabis production activities and medicinal commercial cannabis production activities, as both are described in state law, including but not limited to the Medicinal and Adult Use Cannabis Regulation and Safety Act, are hereby prohibited unless otherwise allowed in this section.

20.32.070: Particular Restrictions for Atlantic Avenue.

No cannabis-related business commercial cannabis production activities or cannabis retailer shall be located within the Urban Agriculture Overlay Zone as shown on the zoning map nor on any property fronting Atlantic Avenue with a storefront frontage facing Atlantic Avenue unless such cannabis business commercial cannabis production activity or cannabis retailer employs and effectuates a business model with a primary entertainment purpose.

20.32.080: Urban Agriculture.

Urban agriculture, excluding cannabis horticulture, shall be permitted by-right subject to described application criteria within the Urban Agriculture Overlay Zone. Any outdoor urban agriculture (other than commercial cannabis) shall be subject to the operating standards in Chapter 20.52 PART 17 (Urban Agriculture).

20.32.090: Prohibition on New Schools, Day Care Centers, and Youth Centers, and Places of Religious Assembly.

A. Within the Urban Agriculture Overlay Zone. The establishment of any new public or private schools or tutoring centers providing instruction in kindergarten or any grades 1 through 12 unless otherwise mandated under state or federal law, day care center, or youth center, or place of religious assembly is prohibited within the Urban Agriculture Overlay Zone, or within 600 feet of the boundaries of the Urban Agriculture Overlay Zone, unless otherwise mandated under state or federal law. An existing public or private school or tutoring center providing instruction in kindergarten or any grades 1 through 12, day care center, or youth

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61 center, or place of religious assembly located within the Urban Agriculture Overlay Zone, or within 600 feet of the boundaries of the Urban Agriculture Overlay Zone shall be considered legal nonconforming, in accordance with Chapter 20.80 (Legal Nonconforming), but shall still be considered a sensitive use pursuant to Section 5.30.050 for the establishment of any cannabis retailer in the Urban Agriculture Overlay Zone.

B. In adjacent zones. The following restrictions apply to the following uses in all zones pursuant to Tables 20.16-1, 20.20-1, and 20.28-1:

1. Schools, public and private, or tutoring centers, in residential zones. Schools, public and private, or tutoring centers providing instruction in kindergarten or any grades 1 through 12 unless otherwise mandated under state or federal law, are prohibited if located within 600 feet of a residential zone located within the Urban Agriculture Overlay Zone as shown on the zoning map, unless otherwise mandated under state or federal law.

2. Day care centers. Day care centers and family day care homes occupying any portion of the Civic Mixed-Use Zone or any residential zone are prohibited if located within 600 feet of the Urban Agriculture Overlay Zone as shown on the zoning map, unless otherwise mandated under state or federal law.

3. Schools, business and professional in mixed-use zones. Schools which provide instruction in kindergarten or any grades 1 through 12 that occupy any portion the Civic Mixed-Use Zone are prohibited if located within 600 feet of the Urban Agriculture Overlay Zone as shown on the zoning map, unless otherwise mandated under state or federal law.

20.32.100: Temporary Permits for Local Events – Rights Reserved.

The City reserves the right to issue temporary permits to cannabis retailers licensed permitted pursuant to Chapter 5.30 (Cannabis Retailers) for onsite cannabis sales to, and consumption by, persons 21 years of age or older at a county fair, district agricultural association event, or other similar event authorized under state law, which is located within the Urban Agriculture Overlay Zone, pursuant to the provisions of Subdivision (e) of Business and Professions Code Section 26200.

20.32.110: Development Standards.

A. Purpose. These provisions are established to ensure all commercial cannabis production activity facilities and all cannabis retailers meet the City’s design and landscape standards; policies, goals and programs of the general plan; and the City’s economic development activities, including community beautification, parking reduction and street improvement efforts. All commercial cannabis production activity development shall comply with the following development standards.

B. Landscaping Standards.

1. All new commercial cannabis production activity development must include landscaping using drought tolerant, California-native trees, shrubs and succulents or other approved plants, and in compliance with Chapter 20.68 CMC (Low Impact Development Measures).

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62 2. Landscaping may include surface planters, aboveground planters, building side planters, rooftop gardens, and other innovative planting solutions approved by the City as part of the review of cannabis retailers permit under Chapter 5.30 or the a Commercial Cannabis Permit and Development Agreement under Chapter 5.20 (Cannabis Production Permitting and Regulation).

3. A five-foot wide landscape planter may be required at the front of new and existing buildings. Exceptions may be made for existing buildings with no existing front yard setback.

4. New development and new parking lots shall, at a minimum, comply with parking lot landscaping standards in Section 20.64.070 and any additional requirements for the Entertainment Zone pursuant to Section 20.20.030.

5. A landscaping plan, designed by a licensed landscape architect or arborist, or other City-approved landscape professional, shall be submitted in conjunction with the application for a Commercial Cannabis Permit and Development Agreement under Chapter 5.20 (Cannabis Production Permitting and Regulation).

C. Parking Standards. See Table 20.64-1 for vehicle parking and Section 20.64.090 for bicycle parking.

D. Façade improvements. All new commercial cannabis permit applications under Chapter

5.20 (Cannabis Production Permitting and Regulation) must include a Façade Improvement Plan for City approval. The plan must include fencing, security walls or other screening plan; new paint, siding or other building improvement materials, in a color scheme approved by the City; new paving (as needed), parking striping, or other site improvements, as determined by the City as part of the Commercial Cannabis Permit/Development Agreement review under Chapter 5.20 (Cannabis Production Permitting and Regulation) and in compliance with Section 20.56.070 (General Architectural Standards).

E. Fencing.

1. Security screening. Security screening (fencing, walls, or other screening features) must be provided along the front perimeter of all Commercial Cannabis production activity facilities. Fencing may be constructed between 8 feet and 10 feet in height along the front property line setback and up to 15 feet in height in the rear or side yard, at the discretion of the City.

2. Fence and wall materials: Allowed materials for fences and walls include, but are not limited to, decorative and reinforced metals, wrought iron, concrete and block.

Alternative materials may be allowed with City approval. Chain-link and razor wire are strictly prohibited.

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63 SECTION 30. Chapter 20.32 of Title 20 (Zoning) of the City Municipal Code is hereby amended by the addition of a new Part 3 entitled “Miscellaneous”, Section 2.32.120 entitled “Rights Reserved by the City”, which shall state as follows:

SECTION 31. Table 20.20-1 (Permitted and Conditionally Permitted Uses in Commercial and Industrial Zones) of Section 20.20.020 (Use Regulations) of Chapter 20.20 (Commercial and Industrial Zones) of Title 20 (Zoning) of the City Municipal Code is hereby amended by the amendment of the following land uses:

P
CUP
A
--
Permitted Use
Conditional Use Permit
Accessory Use
Not Permitted

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64 Land Use NC ENT I-Ind LI Specific Use Regulations
Industry, Manufacturing and Processing, and Warehousing Uses Commercial cannabis
production activity business
-- CUP CUP CUP Commercial cannabis permit
and development
agreement required.

20.32 Part 2 (Urban
Agriculture Overlay Zone)
Cannabis retailer -- P P P Retail cannabis business
permit required.

5.30 (Cannabis Retailers)
Wholesaling, distribution,
warehousing and storage
-- A A A Permitted only as accessory
to a commercial cannabis
production activity business
pursuant to 20.32 Part 2, or
accessory to a light
industrial use or other
permitted use.

SECTION 32. Chapter 20.20 (Commercial and Industrial Zones) of Title 20 (Zoning) of the City Municipal Code is hereby amended by the addition of a new Section 20.28.100 entitled “Rights Reserved to the City”, which shall state as follows:

SECTION 33. Table 20.28-1 (Permitted and Conditionally Permitted Uses in Mixed-Use Zones) of Section 20.28.020 (Use Regulations) of Chapter 20.28 (Commercial and Industrial Zones) of Title 20 (Zoning) of the City Municipal Code is hereby amended by the addition of the following land use:

P
CUP
A
Permitted Use
Conditional Use Permit
Accessory Use

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65 -- Not Permitted
Land Use CMU CivicMU Specific Use Regulations
Retail Uses
Cannabis retailer -- P Retail cannabis business permit
required.

5.30 (Cannabis Retailers)
SECTION 34. Chapter 20.28 (Mixed-Use Zones) of Title 20 (Zoning) of the City Municipal Code is hereby amended by the addition of a new Section 20.20.080 entitled “Rights Reserved to the City”, which shall state as follows:

SECTION 35. Table 20.64-1 (Number of Required Parking Spaces) of Section 20.64.040 (Required number of spaces) of Chapter 20.64 (Off-Street Parking and Loading) of Title 20 (Zoning) of the City Municipal Code is hereby amended by the amendment and addition of the following land uses:

Land Use Minimum Number of Spaces Required
Commercial Cannabis Production Activity
Facilities
1 parking space for every 2 employees during
the peak shift. The city council may reduce
the number of spaces as part of the
commercial cannabis permit and
development agreement review if existing site
conditions limit compliance.

Cannabis Retailer 1 space/400 sf of building area
SECTION 36. Chapter 20.64 (Off-Street Parking and Loading) of Title 20 (Zoning) of the City Municipal Code is hereby amended by the addition of a new Section 20.64.130 entitled “Rights Reserved to the City”, which shall state as follows:

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66 of the City and any provisions of the City Municipal Code adopted by the City Council, the provision of this Chapter shall govern and control but only to the limited extent of the conflict or inconsistency and no further. All such conflicts or inconsistencies shall be construed narrowly so as to allow for the broadest application of all other provisions of the City Municipal Code adopted by the City Council. The City Council further reserves and retains the right to amend or modify, in its sole and absolute discretion, any and all provisions of the City Municipal Code, excluding the provisions approved by a vote of the People of the City, to the extent any such amendments or modifications are not in conflict with the provisions of this Chapter that have been approved by a vote of the People of the City.

SECTION 37. Sensitive Uses. The People of the City find that the definitions of the sensitive uses (day care centers, schools, youth centers, and places of religious assembly) under the amendment to Section 5.30.030 of the City Municipal Code in this Measure are subject to some degree of interpretation. However, the People of the City also find that certainty regarding the identification of sensitive uses (day care centers, schools, youth centers, and places of religious assembly) under the amendments to Sections 5.30.030 and 5.30.060 of the City Municipal Code in this Measure is required to carry out the purpose and intent of the Measure so the that People, the City, and prospective applicants can clearly identify where and where not lawful cannabis retailers under this Measure may be located. Accordingly and pursuant to the authority delegated by the State to the People of the City under Section 26054(b) of the State Business & Professions Code and overriding the location and design requirements contained in Section 26054(b) of the State Business & Professions Code, the following sensitive uses (day care centers, schools, youth centers, and places of religious assembly) and only the following sensitive uses (day care centers, schools, youth centers, and places of religious assembly) located on the following County Assessor’s Identification Numbers and only the following County Assessor’s Identification Numbers shall be considered under the amendment to Section 5.30.070 of the City Municipal Code in this Measure for the purpose of the initial establishment of cannabis retailers pursuant to the initial iteration of the cannabis retailer application procedure under the amendment to Section 5.30.070 of the City Municipal Code in this Measure (to include any review and scoring of any applications pursuant to the objective review criteria and quantitative evaluation scale under the amendment to Section 5.30.070(4) of the City Municipal Code in this Measure). Only following the initial iteration of the cannabis retailer application procedure and the initial issuance of retail cannabis business permits under the amendment to Section 5.30.070 of the City Municipal Code in this Measure, may the City Manager (his or her designee(s)) reinterpret the following list of sensitive uses (day care centers, schools, youth centers, and places of religious assembly) and County Assessor’s Identification Numbers for the purpose of subsequent iterations of the cannabis retailer application procedure under the amendment to Section 5.30.070 of the City Municipal Code in this Measure, change in location applications under the amendment to Section 5.30.130 of the City Municipal Code in this Measure, and any iterations of the application procedure for commercial cannabis activity other than retailers under the amendment to Section 5.30.080 of the City Municipal Code in this Measure.

Name
Sensitive Use
Type
County Assessor’s
Identification Number(s)
Baldwin Park USD Tricities Headstart
Elizabeth Day Care Center
6226-024-907, 6226-024-901,
6226-024-903, 6226-024-904,
6226-024-905, 6226-024-906,
6226-024-909, 6226-024-900,
6226-024-902, 6226-024-908,
6226-025-900, 6226-032-903,
6226-031-901, 6226-031-900

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67 Name Sensitive Use
Type
County Assessor’s
Identification Number(s)
Bell Gardens Elementary School School 6227-026-900
Bell High School School 6325-025-900
Clara Street Park Youth Center 6226-020-904
Centro Evangelistico Ebenezer Place of Religious
Assembly
6226-021-020, 6226-021-013
6226-021-021
Cudahy Park Youth Center 6224-015-901, 6224-014-904,
6224-014-905
Cudahy Preschool Academy Day Care Center 6226-025-020, 6226-031-030 Cudahy River Park Youth Center 6226-027-901
Elizabeth Learning Center School
6226-024-907, 6226-024-901,
6226-024-903, 6226-024-904,
6226-024-905, 6226-024-906,
6226-024-909, 6226-024-900,
6226-024-902, 6226-024-908,
6226-025-900, 6226-032-903,
6226-031-901, 6226-031-900
Ellen Ochoa Learning Center School 6226-004-920, 6226-004-921, 6226-007-946, 6226-007-945
Ellen Ochoa Learning Center State
Preschool Day Care Center 6226-004-920, 6226-004-921, 6226-007-946, 6226-007-945 Jaime Escalante Elementary School
6225-006-908, 6225-006-909,
6225-006-910, 6225-006-901,
6225-006-903, 6225-006-900,
6225-006-904, 6225-006-905,
6225-006-907, 6225-006-902,
6225-006-906
Julia Russ Asmus Park Youth Center 6227-027-903
Lugo Park Youth Center 6225-031-910, 6225-031-911,
6225-031-908, 6225-031-909
Ministerios Una Voz Profetica Place of Religious
Assembly 6224-035-040
Options for Youth Youth Center 6224-005-032
Park Avenue Elementary School School
6224-013-900, 6224-001-900,
6224-014-903, 6224-013-903,
6224-014-902
South Region Early Education Center #1 Day Care Center 6225-005-903 Theresa Hughes Elementary School School
6225-027-901, 6225-027-904,
6225-027-903, 6225-027-905,
6225-027-906, 6225-027-902,
6225-027-900, 6225-031-906,
6225-031-903, 6225-031-905,
6225-031-904, 6225-031-912
Theresa Hughes Elementary School Day Care Center
6225-027-901, 6225-027-904,
6225-027-903, 6225-027-905,
6225-027-906, 6225-027-902,
6225-027-900, 6225-031-906,

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68 Name Sensitive Use
Type
County Assessor’s
Identification Number(s)
6225-031-903, 6225-031-905,
6225-031-904, 6225-031-912
SECTION 38. Re-codifying and Renumbering. The City Council reserves and retains the right to re-codify and/or renumber City Municipal Code provisions adopted pursuant to this Measure provided that such recodification does not change the purpose and intent of this Measure or alter the text of this Measure in a manner that is conflict with the purpose and intent of this Measure.

SECTION 39. Categorically Exempt from CEQA. The People of the City find that the actions contemplated by this Measure, including the issuance of retail cannabis business permits, are categorically exempt from the California Environmental Quality Act (“CEQA”) under Section 15060(c)(2) and Section 15060(c)(3) of Title 14 of the State Code of Regulations and the holding by the State Supreme Court in Tuolumne Jobs & Small Business Alliance v. Superior Court (2014) 59 Cal.4th 1029. Further, the People of the City find that pursuant to Table 20.28-1 of Section

20.28.020 of Chapter 20.28 of Title 20 of the City Municipal Code as codified by this Measure, cannabis retailers are a use permitted subject to described application criteria in certain zoning districts within the City. As permitted in those zoning districts, cannabis retailers are similar to already existing permitted general uses in those zoning districts with the only difference being the type of product being delivered or sold.

SECTION 40. Conflicting Measures. This Measure is intended to be comprehensive. It is the intent of the People of City that in the event this Measure and one or more measures relating to the authorization, regulation, and taxation of cannabis retail sales in the City appear on the same ballot, the provisions of such other measure or measures shall be deemed to be wholly in conflict with this Measure. Accordingly, in the event that this Measure receives a greater number of affirmative votes than such other measures, the provisions of this Measure shall prevail in their entirety, and all provisions of the other measure or measures shall be null and void. Among those other measures on the same ballot that are deemed to be wholly in conflict with this Measure is that certain measure initiated by voter initiative petition and identified as “The Cudahy Marijuana Retail Sales Regulation and Taxation Measure” (“Initiative Petition Measure”). If this Measure is approved by a majority of the voters but, conversely, does not receive a greater number of affirmative votes than any other measure appearing on the same ballot regarding the authorization, regulation, and taxation of cannabis retail sales in the City, including the Initiative Petition Measure, then this Measure shall take effect to the extent not in conflict with said other measure or measures or to the extent the Initiative Petition Measure is inconsistent or in conflict internally and such internal inconsistency or conflict cannot be reasonably harmonized applying applicable rules and doctrines of statutory construction established under State law.

SECTION 41. Inconsistencies. Any provision of the City Municipal Code or appendices thereto inconsistent with the provisions of this Measure, to the extent of such inconsistencies and no further, is hereby repealed or modified to that extent necessary to affect the provisions of this Measure.

SECTION 42. Severability. If any provision, section, paragraph, sentence, phrase, or word of this Measure is rendered or declared invalid, illegal, or unconstitutional by any final action in a court of competent jurisdiction or by reason or any preemptive legislation, such unconstitutionality illegality or invalidity shall only affect such provision, section, paragraph, sentence, phrase, or word and shall not affect or impair any remaining provisions, sections,

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69 paragraphs, sentences, phrases, or words, or the application of this Measure to any other person or circumstance, and to that end, the provisions hereof are severable. It is hereby declared to be the intention of the People of the City that that this Measure would have been adopted had such unconstitutional illegal or invalid provision, section, paragraph, sentence, phrase, or word not been included herein.

SECTION 43. Liberal Construction. This Measure is an exercise of the initiative power of the People of the City to provide for safe and regulated access to cannabis and cannabis products, and shall be liberally construed to effectuate that purpose.

SECTION 44. Legal Defense. If approved by a simple majority of voters, and thereafter challenged in court of competent jurisdiction, the City shall defend this Measure in such court of competent jurisdiction. The People of the City by approving this Measure by a simple majority of voters hereby declare that the proponent(s) of this Measure have a direct and personal stake in defending this Measure from constitutional or statutory challenges to this Measure’s validity or implementation. In the event the City fails to defend this Measure, or the City fails to appeal an adverse judgment against this Measure, in whole or in part, in any court of competent jurisdiction, this Measure’s proponent(s) shall be entitled to assert his, her, or their direct personal stake by defending this Measure’s validity and implementation in any court of competent jurisdiction and shall be empowered by the People through this Measure to act as agents of the People of the City, and the City shall indemnify the proponent(s) for reasonable attorneys’ fees.

SECTION 45. Effective Date. This Measure shall be in full force and effect upon the tenth day following certification by the City Council of the election returns indicating passage of this Measure by a majority of the voters casting votes on this Measure.

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GRS Proposal
City of Cudahy Cannabis Consulting Service
Global Reach Strategies (GRS)
Proposal
City of Cudahy Cannabis Consulting Services
www.glabalreachstrategies.com
Submitted by: Dr. Ayoka Nurse
510-375-2533
[email protected]
Attachment B Page 160 of 909
GRS Proposal
City of Cudahy Cannabis Consulting Services
Juan Arauz
Director of Community Development
City of Cudahy
5220 Santa Ana Street
Cudahy, CA 90201
Re: City of Cudahy Cannabis Consulting Services
Dear Mr. Arauz,
Global Reach Strategies (GRS) is submitting this proposal to consider for your cannabis program. This proposal highlights our demonstrated skills in advising, assisting with the application process, and evaluating applicants.

GRS is composed of a working group of cannabis professionals and academics with a combined mission to improve the overall policy landscape of the emerging cannabis industry. The group comprises businesspeople, technology experts, and policy academics. Our team has the skills and knowledge to successfully perform the Scope of Work outlined in the City of Cudahy’s request for proposal (RFP). This proposal describes our qualifications, project team description, services, cost, and projected timeline.

Each member of the GRS team brings our unique knowledge and experience to the partnership.

We represent a diverse group of entrepreneurs and are proud of our role in the cannabis industry, from assisting with legislation related to drug policy reform, cannabis legislation and initiatives, developing cannabis permit/ license selection processes and regulations, market research, and an internal check for bias and conflict of interest in forming policy, reviewing, and evaluating applications. Together, we have decades of demonstrated abilities to perform the duties requested.

What sets us apart from other candidates is that we have a strong foundation in analytics that includes research and data collection that leads to discovering, interpreting, and communicating significant data patterns that remedy the failed cannabis programs created by other consultants.

There are no third-party vendors for this project.

I HAVE READ UNDERSTOOD, AND AGREED TO ALL STATEMENTS IN THIS

REQUEST FOR PROPOSALS AND ACKNOWLEDGE RECEIPT OF ALL

ADDENDUMS/AMENDMENTS AS WELL AS TO THE TERMS, CONDITIONS, AND ATTACHMENTS REFERENCED.

Ayoka Nurse
(510) 375-2533
Email: [email protected]
January 17, 2023

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GRS Proposal
City of Cudahy Cannabis Consulting Services
Executive Summary
Global Reach Strategies (GRS) is applying to the City of Cudahy's Request For Proposal. Our team is well versed in accomplishing the duties and tasks associated with managing the processing of Commercial Cannabis Business Applications, including assisting City staff prepare application materials, developing an objective scoring rubric in collaboration with City staff, completing a merit-based evaluation process for applicants, regular interface with City staff and other City consultants, and attendance at regularly scheduled coordination meetings as necessary when work is in progress. The ability and capacity to accomplish goals and objectives are vital to our mission and vision. We aim to ensure that fairness, transparency, ethical practices, and access are part of the industry. Our team has the skills and knowledge to perform the Scope of Work outlined in the RFP. This proposal describes the proposed fee packages, deliverables, timeline, and project overview, including the process and methodology for completing the task for completing Component I and Component II.

Application Process
Licensed awards can be contentious as, in some cases, hundreds of applicants may apply for only a handful of licenses, as could be the case with the Cudahy latest round of applications. We have identified reduction as a core pillar of the application process by working with staff to set clear selection criteria of regulations and guidelines and efficient ways of tracking, monitoring, and collecting data from applicants. We have also identified an exacting methodology to ensure licenses are issued promptly so that the state and its various jurisdictions can realize the benefit of tax revenue in a timely manner.

Regulatory Compliance
GRS ensured cannabis applicants accurately and successfully completed state and local applications for California, Washington, Illinois, and Massachusetts and helped establish cannabis incubators. We use our resources to assist with local, state, and federal tax regulation and cannabis policies and teach applicants how to follow regulations for quality control and accounting practices for local, state, and federal requirements.

Evaluation
GRS utilizes our collective experience in overall cannabis policy through a statistical methodology that includes a review of laws, policies, and regulations, analysis, and communicating information to a diverse audience. We use spreadsheets and tracking software to ensure that all applications are reviewed and meet equity criteria. Our proposal offers statistical methods of tracking and monitoring all submissions, reviewing applications, sending out deficient notices when applicable, meeting deadlines and budget requirements, and communicating findings to the City.
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Project Approach
GRS are a group of passionate and focused entrepreneurs. We have sustained longer than our competitors in an industry that is increasingly more difficult to manage and lacks access for people of color. We believe in the power of Cannabis for social good as well as fiscal profit. Our history includes building cultivation sites, retail stores, distribution centers, and some of our partners founded and work on local and national trade organization.

We have team members with proven records of planning and developing the cannabis application process, establishing the criteria for participation, and working with the city and community all core components of Cudahy’s Cannabis Program. GRS stands by our successful implementation of rules, legislation, and policies that go beyond the industry standards to promote and support diversity and minority-owned businesses.

Approach to Component I & Component II

1. Planning / Documenting/Creating
□ Set Obtainable Goals and Objectives
□ Develop initial Standard Operating Procedures for: data collection, developing forms, instructions for submitting documents and forms, instructions for processing
documents, corresponding with applicants and WSCLB;
software for collecting and disseminating
forms/documents and information
□ Social Equity Application Criteria
□ Draft of Initial Forms
□ Draft SOP’s
□ Submit for review

2. Data Collection
Establish Criteria
Form Development
Scoring Rubric
a. Development of forms (Initial letter indicating what additional requirements are necessary, 7-day letter to submit additional requirements) and submission requirements (e.g., format for providing the information to the Contractor) for applicants to provide additional application materials
including documentation:
□ That verifies applicants meet the criteria for a
Social Equity License
□ Of the applicants’ responses to score the Social
Equity scoring rubric
□ Of the applicants’ selected jurisdiction (only one
permitted)
□ Of the applicant’s entity membership
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8. FINAL

EVALUATION
Evaluating
Manager-
• Final Evaluation Form
• Final Evaluation Form reviewed by next level manger (if applicable). • Any edits as a result of next level manager are incorporated and final product is prepared.
• A meeting is scheduled to discuss with the applicant.

9. DISCUSSION
FINAL

DISPOSITION
Evaluation
Manager
Applicant
• Manager and applicant sign original copy of evaluation. • Manager provides applicant with a copy.
• Manager sends original signed copy to City Staff.

10. 2-
Years
• To assure quality GRS, we will work with the City Staff to determine what infrastructure needs to be maintained
Methodology1
The ranking method is a performance evaluation methodology. The ranking is a question response format used to establish a priority of applicants who meet the criteria. Evaluating applications for City of Cudahy using this method allows GRS to identify applicants who fit the requirements effectively.

One drawback of this method is that ranking may be subjective. To account for this, GRS will evaluate each application using a set of criteria that is clear and concise along with in line with the objectives of the City of Cudahy. In addition, we will evaluate each application using an equity lens that ensures there is no evaluator bias or conflict of interest. At GRS, we are committed to diversity and inclusion, and with that being part of our vision, we plan to apply these principles to the evaluation process given a higher priority and consideration for minorities, women, and veterans.

There are three main types of ranking: Standard competition ranking, ordinal ranking, and fractional ranking. GRS will use all three forms of ranking in the evaluations to establish a hierarchy of applications. Standard ranking applies to the screening process to ensure all applications are viewed, processed, documented, and assigned an initial score and rank. Ordinal ranking is for applicants who meet the criteria and need feather evolution. Fractional ranking applies to a tie between applicants. In the event that a tie occurs we will conduct additional review which may or may not include a lottery process.

The process of finalizing Component I will take approximately 21 days. Component II the evaluation process will take at least 75 calendar days depending on the complexity of the application which may require more time for multiple background checks and translation services are needed
1 The SAGE Handbook of Qualitative Business and Management Research Methods (2021) Sage Publishing 3

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Project Process
The methods to accomplish effective process of application regulations, guidelines, forms, evaluation criteria and scoring rubric development and application include, but not limited to working with the City to create:

Scoring Rubric
• Focus on
measuring very
specific stated
outcomes related to
equity applications
• Use a range to rate
performance
• Arrange
applications/charact
eristics in levels
indicating the
degree to which a
standard is met
• Group applications
based on how
applicants score
Assign/Asses
• Assign an
evaluation
code/score to an
application.
• Document overall
application ratings
and evaluations
• Assess/Re-Assess
application
Timeframe &
Benchmarks
• Goals
• Timeline I-21D/II-75D
• Task/Responsible Party
• Action/Form
• Standard Operating
Procedures
• Best Practices
Quality Control Measures
• Assign senior staff
to review
application
evaluation
• Ensure that all
applications are
ranked, scored,
evaluated in line
with the
requirements and
standards of City of
Cudahy
Education/Workshops
• Provide
instructions and
resources
• Inform potential
applicants about the
application process
and review criteria
o Interviews
o Presentation
s/Visuals
o Focus
Groups
o Surveys
Strategic Planning
• Fairness
• Outcomes
• Validation of
outcomes
• Prioritize
objectives
• Develop a strategic
plan
• Execute and
manage plan
• Review and revise
plan
Translation Services
• Establish
Contractslocal/state
companies
• Language: Soviet
Republic, Central
Asian, and Spanish
Speaker
• Call/Video
Background Checks
• Criminal history
background reports
• Arrest reports
• Other court
documents related
to the conviction or
vacated sentences
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Methods for Storing and Maintaining Applicants’ Confidential Information GRS will keep all applicant confidential information and documents safe. We will control access to confidential information by storing them digitally, requiring a login and password for access and a digital storage system with firewalls and encryption capabilities. To dispose of documents, we will use confidential waste bins and shredders. All paper files will be kept in lockable storage cabinets, and only managers will have keys to open them. We will also conduct staff and vendor training to teach them how to appropriately store and protect confidential information. Upon completion of the training, all staff will sign a document agreeing to safeguard all confidential information.

Methods for Storing and Maintaining Applicants’ Confidential Information GRS will forward all confidential documents to City of Cudahy by using a digital storage system with firewalls, encryption capabilities, login, and password requirements. 1) Method of collecting additional application
materials from Social Equity applicants
Well defined list of documents needed
• Description
• Detailed Instructions
• Link to forms and additional material
• Submission criteria (Word, PDF)
• Checklist (Fillable PDF)
• Email request
• Set ability to upload
• If mailed -require tracking number
• Set due dates for each document/form
• Set automatic reminders
2) Method of identifying if applicants (persons
or entities) applied more than once
Ways to identify duplicate
entries/applicants/entities
Manually
• Enable duplicate applicants by tracking
phone numbers, email, driver’s license
numbers
• Flag applicant with duplicate phone
numbers, email, driver’s license (review
manually)
Automatically
• Insert formula for duplicates in
spreadsheet or document/form collection
software (i.e., SharePoint)
3) Method of scoring application materials
using the scoring rubric provided by the
WSLCB.

Rank/Score Method
Standard ranking-Screening Process
Ordinal ranking - meet the criteria and need
feather evolution
Fractional ranking – tie between applicants
4) A detailed plan about how supplemental
application materials will be requested and
received.

Applications request
• Email Link: to forms/checklist for
documents ability to upload documents
Application received
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• shared drive to upload docs (i.e.,
SharePoint, Drop Box, Express mail with
tracking number, other)
5) Accessibility of the bidder and proposed
process to answer applicants’ questions about
the process and supplemental application
materials. Including maintaining an active
online presence that allows applicants access to
required forms, frequently asked questions,
and other tools developed by the contractor to
reduce barriers for applicants.

Answer applicants’ questions
• Contact us via email, call or submit
contact request online
• Create FAQ’s
• Post process flow chart on website:
a. How to apply
b. How to submit documents
c. Deadlines
d. Next steps
6) Methods for providing information about
applicants who do not meet Social Equity
criteria.

Data collection
Spreadsheets
• Provide detailed narratives, reports,
visuals, and list created using excel
• Detail reasons criteria was not met
• If multiple applicants don’t meet certain
requirements, we:

Software that tracks and monitor all applicants
to ensure that instructions are clear and
concise, access to forms/docs/process, equity
criteria are fair, impartial, and just
7) Methods for providing a ranked list of
applicants who meet the criteria to be a Social
Equity applicant, by jurisdiction.

Meet Social Equity Criteria
Data collection and analysis
Spreadsheets
• Provide detailed narratives, reports,
visuals, and list created using excel
• Detail reasons criteria met
Software that tracks and monitor all applicants
to ensure that instructions are clear and
concise, access to forms/docs/process, equity
criteria are fair, impartial, and just;
application is complete and meet requirements
8) Methods for providing confidential
documentation to support the evaluation of
applicant criteria, scoring eligible applicants,
applicants’ chosen jurisdiction, and applicant
entity members.

We will forward all confidential documents to
City Staff by using a digital storage system with
firewalls, encryption capabilities, login, and
password requirements
9) Methods for ensuring confidentiality of
applicants.

We will control access to confidential information
by storing them digitally, requiring a login and
password for access and a digital storage system
with firewalls and encryption capabilities.
10) Methods for ensuring against conflicts of
interest for all staff engaged in the contracted
services.

We use an equity lens process to ensure that we
address any evaluator bias
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11) Methods for collecting and reporting
applicants’ demographic information to City
Staff
Applicants’ Demographic Information
Data collection, analysis, visuals, reports, and
separate spreadsheet capturing demographical
data during screening process
Firm Qualification
Each member of the GRS Cannabis Consulting team brings our unique knowledge and experience to the partnership. We represent a diverse group of entrepreneurs and are proud of our role in the cannabis industry, from drug policy reform to forming organizations instrumental in developing community and outreach programs throughout Washington. Together, we have decades of demonstrated abilities to perform the duties requested.

What sets us apart from other candidates is that we have a strong foundation in providing services to the cannabis industry, including applications, business formation, analytics related to cannabis laws, regulations research, and data collection.

Our skills are essential because they are necessary when creating a criterion, evaluating, and scoring applications for the City that lead to actual diverse representation in cannabis that is not a carbon copy of other cannabis programs that have systematically failed underrepresented communities. At GRS, we will focus on the specific objectives of the City of Cudahy and work with staff to tailor a cannabis program that meets the needs of the City, community, and the local cannabis industry.

Timeline Services Scope of Work

1. Component I
(Due before
March 20, 2023)
Evaluation Criteria and
Application Submittal
Guidelines
Application Form
Development of Cannabis
Regulations and
Publishing of Materials
Set Obtainable Goals and Objectives:
□ Develop initial Standard Operating Procedures
for: data collection, developing forms,
instructions for submitting documents and
forms, instructions for processing documents,
corresponding with applicants and City of
Cudahy; software for collecting and
disseminating forms/documents and
information
□ Application Criteria
□ Draft of Initial Forms
□ Draft SOP’s
□ Submit for review
□ Development of forms (Initial letter indicating
what additional requirements are necessary
letter to submit additional requirements) and
submission requirements (e.g., format for
providing the information to the Contractor) for
applicants to provide additional application
materials including documentation:
□ That verifies applicants meet the criteria for a
License
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□ Of the applicants’ responses to score the
scoring rubric
□ Applicants reports

2. Applications Regulation
Guidelines, Forms,
Evaluation criteria
Advise and assist City staff in preparing. Use best
practices established by the State, local and federal
guidelines
Development of a scoring
rubric based upon the
approving evaluation
criteria
Methodology for Rank/Score
Standard ranking-Screening Process
Ordinal ranking - meet the criteria and need feather
evolution
Fractional ranking – tie between applicants
□

3. Application form Prepare
forms
Word documents/Excel/PDF/Shared Drive/Email
• Submission Criteria
• Equity Criteria
• Screening
• Rank/Score method
• Additional material
• Checklist
• Plan for protecting confidential information
Dissemination of Application Guidelines Information
• Detailed instructions
• Link to documents/forms on City website
• Submission criteria (Word, PDF)
• Checklist (Fillable PDF)
• Email request
• Set ability to upload
• If mailed -require tracking number
• Set due dates for each document/form
• Set automatic reminders
• PDF fillable forms and checklist
Data and Application Collection Tools
• Microsoft Word
• Email
• Website
• PDF Filer
• Shard Drives
o SharePoint
o Drop Box
o Google Drive
o One Drive
o Other

4. Application form Prepare
forms
Plan to identify and provide information to the City of Cudahy about applicants and entities who have applied.

Plan and resources to verify information submitted by
applicants.
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5. Development of a scoring
template which provides
for consistent tracking of
application scores.

Methodology for Rank/Score
Standard ranking-Screening Process
Ordinal ranking - meet the criteria and need feather
evolution
Fractional ranking – tie between applicants
(See Examples in the Appendix)

6. Production of final scoring
reports that rank
applicants and provide
recommendations on
which applicants should
advance to the next round
of the application process.

Data collection using excel spreadsheets to track and
monitor all applicants and those who are selected to
move forward.

Create detailed reports with recommendations
Forward for review

7. Development of
application interview
protocols including
assisting the City in
developing standardized
interview questions and
other insights that may
need to be included based
on individual proposals
We will help the City create open-ended interview
questions, develop FAQ’s, and surveys to get feedback.

8. Application information
disseminated returned
Deficient Letters
Additional Information
Met criteria
□ List of applicant’s outcomes including those
who do not meet the requirements and all
associated documents to support the decision
provided in a secure electronic manner in a
format mutually agreed upon
□ List of applicants who meet the requirements,
scored, and all associated documents to support
□ the decision provided in a secure electronic
manner to in a format mutually agreed upon
□ List of retail title certificate holders who meet
the
□ List created based on phase 1 screening

9. Component II
(Completed 75
days of
receiving
applications
form City)
Evaluation
review and evaluation of
multiple retail cannabis
permit application
proposals by subject
matter experts
List of applicants who do not meet the requirements and all associated documents to support the decision
List of applicants who meet the requirements, scored by category, and all associated documents to support the
decision f. List of retail title certificate holders who meet the requirements, and all associated documents to
support the decision.

List of all retail title certificate holders who do not meet the and all associated documents
to support the decision
Evaluate/Score/Rank ALL Applications
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Proposer Qualifications and Experience
Listed is an outline highlighting GRS staff’s combined experience. Collectively we are a new business; however, each individual partner has decades of experience in research, analytics, data management, cannabis application review outreach and education.

A. Experience consulting with California
municipalities on cannabis related policies and
initiatives.

State License Ordinance (Washington)
Cannabis Sub-Committee (Richmond,
CA)
City of Tracy (Successfully Consulted
for Cannabis Applicants)
Santa Rosa (Social Equity)
Sacramento (United Core Program)
2 Dispensary Licenses (Washington)
Cannabis Organization (Washington
B. Experience in developing cannabis permit/
license selection processes and regulations
Cannabis Equity Program – Richmond,
CA
Obtained two cannabis licenses -
Washington
Created Center for Palliative (CPC) -
Washington
Application and License preparation
and Review
• Washington
• California
• Illinois
Provide Detailed Reports, Spreadsheets and Visuals
Forward for review and discussion
Final Evaluation Form
Final Evaluation Form reviewed by next level manger
(if applicable).

Any edits as a result of next level manager are
incorporated and final product is prepared
A meeting is scheduled to discuss with the applicant
Manager and applicant sign original copy of evaluation.

Manager provides applicant with a copy
send original signed copy to City w/ report

10. Duration of
Project
Anticipated Meetings
w/City Staff
Check-in and milestone meetings throughout the
project
Online: Meetings will be conducted via video
conferencing system like Zoom.

11. Duration of
Project
Provision of invoices based
on individual applications
which track the time and
materials your firm spent
on the review of an
applicationWe use accounting software to track and monitor invoicing and payments
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• Antigua & Barbuda
State Cannabis Legislation experience
Federal Drug Reform Legislation
Licensing Programs
Application Review
C. Experience in evaluating business and operating
plans as well as completing economic viability
analysis for private sector and /or cannabis related
businesses.

Cannabis Sub-Committee- Richmond,
CA
4 Year Cannabis Study-Including
economic, score/rank methodology
Policy Research and Analysis
Market Research
Cannabis Real estate Listings –
CannaMLS-Cannabis Business
Consulting (combined) 15+ Years
Proposed Personnel
Dr. Ayoka Nurse
Dr. Nurse is a California native with knowledge of the economics, zoning, and community of the City of Cudahy. As a Policy Analyst, she has over 25 years of professional experience in evaluation, research and analysis of policies related to cannabis and other social issues. She has demonstrated experience in writing cannabis policy, evaluations, research, and analysis and ranked methodology.

Jeremy Kaufman-Application Review/Evaluation
Kaufman is the founder of the Center for Palliative Care (CPC), the very first fully licensed, and fully tax paying medical dispensary in Washington State. The CPC is an award-winning organization that generates over $10 million dollars in revenue. Kaufman has completed application reviews and evaluations for over twenty equity applicants. Both have knowledge of best practices in cannabis taxation.

John Davis – Application Review/Evaluation
Mr. Davis has worked on drug policy reform for over 25 years. He is a founding member, three term Board member and three term Vice-Chair of the National Cannabis Industry Association (NCIA) the largest cannabis industry association in the United States. He is a founding member, Chairman and Executive Director of the Coalition for Cannabis Standards and Ethics (CCSE) which became Washington State’s largest industry group. In 2013 the CCSE merged with 4 other industry groups to form what is now Washington State’s largest industry group, The Cannabis Alliance (TCA). John is a founder and is a three-term board member of the TCA. John was a Board member of Hemp Initiative Projects of Washington State starting in 1993 where he helped to author early cannabis legalization initiatives and run the campaigns. He also served as the Treasurer for the 501(c)4 organization.

Khalil Ferguson – Technical Training & Regulatory Compliance 11

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Ferguson is a graduate from Sacramento State University with a bachelor’s in International Relations and a Bachelor’s in Economics. Ferguson serves as the Deputy Director for the California Equity Policy Council (CEPC).

Lesa McIntosh, Esq.: -Legal Services, Application Review & Evaluation Lesa is an attorney and sole practitioner in the City of Richmond for 30 years. Her practice currently focuses on business, wills, trusts, and probate. Over the years she has also practiced criminal law, family law, real estate, bankruptcy, land use and other legal services.

Samantha Sadler: Legal Assistant / Application Coordinator Sam completed a policy graduate legal internship with the Minority Cannabis Business Association (MCBA) and became the legal clinic coordinator for a dispensary based in Arizona.

They studied and obtained their bachelor’s degree in Psychology and Community Regional Development at the University of California, Davis.

Resume
Ayoka Nurse-Project Lead, Forms, Scoring Rubric, Regulatory Compliance Application Review, Evaluation

WORK EXPERIENCE
Global Reach Strategies 2017-Curent
• Policy Analyst public administration, equity, policy, legislation, regulations, and compliance
• Cannabis Consultant, successfully provide pre and post regulatory compliance, research and support for state, local, global jurisdictions.
• Policy formation and implementation: social equity legislation, regulatory review, ensure quality controls and compliance for United States: California, Illinois, Virginia, Antigua and Barbuda
• Collected and analyzed data, evaluated, and oversaw progression of the cannabis social equity ordinances for the City of Richmond and other local municipalities; submitted to City Council and Board of Supervisors for approval, develop and implement effective equity programs for cannabis
Management Analyst 08/2017-09/2022
Alameda County
• Researched and analyzed social policy related to Children and Family Services. • Technical and professional analyst; planed, designed, and conducted operational, policy, and programmatic studies; performed complex legislative and data research, analysis, and reported using software programs; kept up with and reported developments and trends in social policy; solved problems, identified opportunities.

Associate Governmental Program Analyst 09/2015-05/2017
State of California, Department of Industrial Relations • Provided research and analysis for state policy, operations, and programs. • Created and facilitated online regulatory examinations by implementing software systems, creating procedures; conducting training; produce quarterly reports that are distributed to state agencies; provide evaluations on best practices. 12

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• Research statutes, regulations to ensure reports, requests, and memos created comply with the law; submit findings to appropriate division managers Case Management Analyst (CL-25) 06/2005- 05/2010
United States Federal Judiciary
• Monitored and evaluated the progression of federal cases; prepared and managed complex quantitative reports and presented findings to judge’s chambers. • Conducted extensive legal, quality control and statistical research; wrote public policy procedure guidelines.

Campaign Finance Analyst/Political Reporting Specialist 09/2003-06/2005 Nielsen, Merksamer, Parrinello
• Prepared federal and local compliance and regulatory reports for political reporting law firm to determine the accuracy and legality of financial contributions to political action committees and politicians.

Associate Researcher 03/2000-08/2006
UC Berkeley, School of Public Health
• Analyzed and researched popular culture, monitored, and evaluated trends, created statistical reports, analyzed qualitative and quantitative data, public speaking, speech writing
Assistant Editor 03/1996-06/2000
Gavin Magazine
• Conducted interviews with celebrities and music executives • Wrote and edited feature stories for weekly magazine
• Tracked the weekly progression of college and commercial radio stations playlist • Compiled data to be converted into weekly music chart that was disseminated throughout the music industry
Co-Founder Cultural Reporter/ Producer 06/1991-03/1996
• Youth Radio Wrote and produced award winning features and commentaries for National Public Radio and hosted community affairs show on 94.9FM.

EDUCATION
Ph.D. Public Policy and Administration. (2021)
Dissertation: Racial Capitalism and the African American Experience Entering the Cannabis Industry.

Master of Public Administration in public management. (2009) Thesis: Public Management and Work Moral Impact on Public Services Bachelor of Arts in Political Science. (2003)

PUBLICATIONS
NORMAL. (2022) How to Calm Your Mind Using CBD/THCa. https://www.normal.org National Cannabis Association. (2022). Interview: Cannabis Subject Matter Expert and Cannabis Social Equity. https://www.youtube.com/watch?v=yDdmhRyiD-I Black Women Organized for Political Action (BOWAPA). (2022). Regional Board of Directors and Committee. Presentation: Cannabis Subject Matter Expert City of Richmond, CA (2021). Presentation: Cannabis Social Equity Economic Development Commission.

Kohala Podcast. Subject Matter Expert Interview.(2021). Interview: Cannabis Subject Matter Expert. https://open.spotify.com/episode/1lU5dzrcihrhcOgoSVlvFq 13

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Racial Capitalism, and the African American Experience Entering the Cannabis Industry. (2021). Published Dissertation. https://scholarworks.waldenu.edu/dissertations/10817/ Intro to Policy & Cultural Intelligence (2020). Nasher Sculpture Center. Diversity Equity Access and Inclusion.
https://acrobat.adobe.com/link/review?uri=urn:aaid:scds:US:b814e955-a48b-327a-b804- 4b18ea9a1db2
Richmond California City Council Meeting. (2018). Presentation: Cannabis Social Equity The Digital Afterlife of Youth-Made Media: Implications for Media Literacy Education (2012). Interview: https://www.scipedia.com/wd/images/7/7a/Draft_Content_459961715- 26624.pdf
Gavin Magazine Music trade magazine, weekly articles, and feature stories on pop culture https://worldradiohistory.com/hd2/IDX-Business/Music/Archive-GavinIDX/IDX/90s/97/Gavin-1997-11-21-OCR-Page-0048.pdf UC Berkeley Changes in The Prevalence of Alcohol Use in Rap Song Lyrics. 1979–97 (2005). Data Base with narratives. https://doi.org/10.1111/j.1360-0443.2005.0119 14

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206.696.9765
[email protected]
Seattle, WA

E D U C A T I O N &

A W A R D S

BACHELOR OF ARTS
Business Management
WWU, Bellingham, WA
2004

DOPE AWARDS
Best Medical Dispensary, Best
Staff
2013

CANNA AWARDS
Best Product, Most
Revolutionary
2014

S K I L L S
Process Optimization
Contracts & Negotiations
Operational Efficiency
Risk Assessment
Dynamic Problem Solving
Resource Management
Leadership
Adaptability
Legislation Creation/Lobbying
Activism
Community Organization

P R O F E S S I O N A L E X P E R I E N C E
CEO 2009 - 2021
The CPC, Seattle, WA
The CPC is Washington states first fully licensed and recognized medical retail outlet in 2008. The CPC was founded from a vision to heal the world. Brought to life by 2 creative minds that started from an initial investment of $13K, the CPC grew to serve Tens of thousands of patients and generate over $10M in wholesale revenue, helping to educate and empower the community and change the landscape of professional Cannabis forever.
• Effectively managed team of 20 employees serving tens of thousands of patients focusing on pain reduction and improved health with holistic wellness at the center
• Directed evaluation of company’s financial, operational, and sales and marketing structures to plan improvements with continual increase of operating efficiencies.
• Successfully led contract negotiations to merge two companies.

OWNER OPERATOR 2016 - Present
The Bakeree, Cannabis retail stores, Seattle, WA
• Oversaw the design and build out of two retail stores. • Oversee operational management of day to day activities to ensure KPI and strategic goals are achieved.

EXECTUIVE DIRECTOR 2010 - 2020
The Cannabis Alliance, Seattle, Wa
• Served as a founding member of the state’s largest trade organization, developing and implement policies that established best practices for the industry.
• Coordinated with administrative assistant to organize weekly priorities, resolve intermediate conflicts and prepare agendas.

S U M M A R Y
Results-driven and globally minded leader with 10+ years of advocating for legislation and equality in the cannabis industry. Tenacious change manager with a strategic and analytical approach to solving problems, bringing in customers and accomplishing profit targets. Talented in identifying and capitalizing on emerging trends and revenue opportunities. Drives sales with forward-thinking approaches focused on capturing opportunities and promoting growth.

J E R E M Y K A U F M A N

C A N N A B I S C O N S U L T A N T
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References

REFERENCE PROJECT DESCRIPTION
Stephane Lasme
Nola Cultivation Owner – Richmond
(413) 306-0881
[email protected]
Parr Blvd. Richmond, CA 94801
Full cycle business plans and strategies.

Successful cannabis license application
review, and submission retail, cultivation,
distribution, and cultivation for Illinois,
Massachusetts, New York (2020-2022)
$19 Million-Dr. Nurse
Stephanie Campos-Bui
UC Berkeley, School of Law
Assistant Clinical Professor of Law
(909) 568-7410
[email protected]
419 Law Building Berkeley, CA 94720
SB 1106 (Weiner) which removes restitution
balances as a barrier to access expungements.

Through the CEPC, Ferguson secured $60
million in tax relief
(2020-2022)
Zee Handoush
7’Stars Dispensary Owner–Richmond
(510) 918-1510
[email protected]
3219 Peirce St. Richmond, CA 94804
Successful Statement of Interest that led to
winning bid for cannabis business at Canal
Building in Richmond (2018-2020)
$2 Million
-Dr. Nurse
Tomasa Duenas
Assembly Bonta Chief of Staff -18
(916) 319-2018
[email protected]
California Assembly Office: Capitol Office
1021 O St., Suite 5620 Sacramento, CA
Working with legal advocacy and research
organization, Ferguson assisted in the passage
of AB 1706 (Bonta) related to automatic
cannabis expungements.
(2016-Current). -Ferguson
Ahmed Anderson
Chair, Economic Development Commission
City of Richmond
510-219-5782
Conducted community evaluations,
application reviews, target market analysis,
policy changes, compliance, political
environment, and other stakeholders. I
accomplished this through surveys,
observations, focus groups, research, and
analysis. Reports directly to City Council and
Economic Development Department. The
result was a presentation to the City Councils
and their unanimous approval of an Equity
Ordinance based on my research and analysis.

The city was approved for a 1.3 million GoBiz
grant for funding. -Nurse
16

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21 EXHIBIT “C”

COMPENSATION RATE

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GRS Proposal
City of Cudahy Cannabis Consulting Services
Fee Schedule
Services Cost One Time Cost Not to Exceed
Evaluation Criteria and
Application Submittal
Guidelines
Application Form
Development of Cannabis
Regulations and Publishing
of Materials
Applications Regulation
Guidelines, Forms,
Evaluation criteria
$3000 $3000 $4,000
Cost depends on the
complexity of the
permit application,
meetings, forms,
(background checks
and translation if
applicable).

Development of a scoring
rubric based upon the
approving Ordinances and
best practices.

Development of a scoring
template which provides for
consistent tracking of
application scores.
$2,500 $2,500 $3,500
Cost depends on the
complexity of the
permit application,
meetings, and forms
Production of final scoring
reports that rank applicants
and provide
recommendations on which
applicants should advance to
the next round of the
application process.

Applicant tracking &
monitoring of outcomes
Outcome reports to City
Staff
$2,500 $2,500 $3,500
Cost depends on the
complexity of the
permit application,
meetings, and forms
Development of application
interview protocols including
assisting the City in
developing standardized
interview questions and other
insights that may need
$2,500 $2,500 $3,500
Cost depends on the
complexity of the
permit application,
meetings, and forms
Review and evaluation of
multiple retail cannabis
$150 per-hour $2,500 per
application
1

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GRS Proposal
City of Cudahy Cannabis Consulting Services
permit application proposals
by subject matter experts
*Anticipated time and
material costs for application
review on a per application
basis average is 6 hours, for
more complex applications
with multiple applicants a
review may take up to 17
hours
Per application based on
complexity of
application
Application information
disseminated returned
Deficient Letters Additional
Information Met criteria
Included in hourly
review cost

9. Anticipated Meetings
w/City Staff
Check-in and milestone
meetings throughout the
project Online: Meetings will
be conducted via video
conferencing system like
Zoom.

In Person: Team Leader
Ayoka can make in-person
visit to Woodland for meetings
with staff and applicants as
needed- Cost are for travel
(gas)
Included in
administrative
cost

10. Logistics of Application
Review
Applications reviews will take
place in our home offices. We
each have a secure place to
work, store and process
confidential documents. Our
computers and software have
firewalls and are encrypted.

Meeting with applicants will be
conducted via video
conferencing system like
Zoom.
2

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GRS Proposal
City of Cudahy Cannabis Consulting Services
Provision of invoices based on
individual applications which
track the time and materials
your firm spent on the review
of an application
Included
administrative
cost
Administrative Cost $2,500 per month $2,500 per month
3

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Page 1 of 2 ends

FALSE CLAIMS ACT CERTIFICATION/

FALSE CLAIMS ACT VIOLATION HISTORY
Proposer shall provide either the certification requested below or the information requested on the next page.

Failure to certify or provide the requested information may result in a determination that the Proposer is non-responsive and City may reject the proposal on this basis. Failure to fully and accurately provide the requested certification or information may result in a determination that the Proposer is not responsible and City may reject the proposal on this basis as well. “False Claims Act”, as used herein, is defined as either or both the Federal False Claims Act, 31 U.S.C. Sections 3729 et seq., and the California False Claims Act, Government Code Sections 12650 et seq.

FALSE CLAIMS ACT CERTIFICATION
If the Proposer has no False Claims Act violations as defined above, complete the following:

I, , am the ___________________________________
(Print Name) (Title with Proposing Entity)
of______________________________________________________ (hereinafter, “Proposer”). (Print Name of Proposing Entity)
In submitting a proposal to the City of Cudahy, I hereby certify that neither Proposer nor any person who is an officer of, in a managing position with, or has an ownership interest in Proposer has been determined by a court or tribunal of competent jurisdiction to have violated the False Claims Act as defined above.

I declare under penalty of perjury that the foregoing is true and correct.

Executed this day of
(month and year) (city and state)
By
(Signature of Person Responsible for Submitting Proposal on behalf of Proposer) Ayoka Nurse CEO
Global Reach Strategies
17th January 2023 at Richmond, California

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FALSE CLAIMS ACT VIOLATION HISTORY
(1) Date of Determination of Violation:
(2) Identity of tribunal or court and case name or number, if any:
(3) Government Contract or project involved:
(4) Government agency involved:
(5) Amount of fine imposed:
(6) Exculpatory Information:

DECLARATION
I, , the ____________________________________
(Print Name) (Title with Proposing Entity)
of _____________ (hereinafter, “Proposer”)
(Print Name of Proposing Entity)
declare under penalty of perjury that the above information is true and correct.

Executed this day of at ________________________________ (month and year) (city and state)
by _________________________________________________________________________ (Signature of Person Responsible for Submitting Proposal on behalf of Proposer) [END OF DOCUMENT]
N/A
N/A
N/A
N/A
N/A
N/A
Ayoka Nurse CEO
Global Reach Strategies
17th January 2023 Richmond, California

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Page 1 of 3 ends

CONFLICT OF INTEREST

CERTIFICATION/DISCLOSURE
Proposer shall provide either the certification requested below, or information requested on the next page.

Failure to provide such certification or information may result in a determination that the Proposer is nonresponsive. Failure to provide the requested certification or information fully and accurately may result in a determination that the Proposer is not responsible, and City may reject the proposal.

CONFLICT OF INTEREST CERTIFICATION
I, , am the ___________________________________
(Print Name) (Title with Proposing Entity)
of______________________________________________________ (hereinafter, “Proposer”). (Print Name of Proposing Entity)
• I hereby affirm that no conflict of interest either real or potential exists as to any matter which will be entrusted to Proposer pursuant to the Proposal submitted for consideration. • I hereby affirm that neither I, nor any officer, manager, or owner of Proposer has relationships of an official, professional, financial, or personal nature that may cause Proposer to limit the extent of inquiry, to limit disclosure, or fail to objectively complete its assignments in any way. Examples of potential conflicts include, but are not limited to:
o A family member employed by a firm competing in a selection; o Ownership (through stock shares, etc.) in a competing firm; o A family member or an employee providing sub-contracted services to one of the competing firms (whether on this project or not);
o A family member or an employee currently in discussions with a competing firm concerning future employment;
o Any other circumstance where success of a competing firm would result in a personal benefit to Proposer or, if known by others, would give the appearance of such benefit.
• I further affirm that no other relationship or bias exists that will impair or restrict Proposer’s independence in performing all assigned responsibilities. • It is the responsibility of the Proposer to ensure that they are not or will not become involved in a conflict of interest situation or activities relevant to this project. If during the project a potential conflict arises, it must be immediately disclosed in writing to City.

In submitting a Proposal to the City of Cudahy, I hereby certify that neither Proposer nor any person who is an officer of, in a managing position with, or has an ownership interest in Proposer has a real or potential conflict of interest as described, above.

I declare under penalty of perjury that the foregoing is true and correct.

Executed this day of at
(month and year) (city and state)
by
(Signature of Person Responsible for Submitting Proposal on behalf of Proposer) Ayoka Nurse CEO
Global Reach Strategies
17th January 2023 Richmond, California

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Page 2 of 3 ends

CONFLICT OF INTEREST DISCLOSURE
Please describe any real or potential conflict of interest (if any):

Attach additional sheets, if necessary.

N/A

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Page 3 of 3 ends

DECLARATION
I, , the
(Print Name) (Title with Proposing Entity)
of (hereinafter, “Proposer”)
(Print Name of Proposing Entity)
declare under penalty of perjury that the above information is true and correct.

Executed this day of at
(month and year) (city and state)
by
(Signature of Person Responsible for Submitting Proposal on behalf of Proposer) [END OF DOCUMENT]
Ayoka Nurse CEO
Global Reach Strategies
17th January 2023 Richmond, California

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Page 1 of 3 ends

CIVIL LITIGATION DECLARATION/

CIVIL LITIGATION HISTORY
Proposer shall provide either the declaration requested below or information requested on the next page.

Failure to provide such certification or information may result in a determination that the Proposer is nonresponsive. Failure to fully and accurately provide the requested certification or information may result in a determination that the Proposer is not responsible and City may reject the proposal on this basis as well. For the five (5) years preceding the date of submittal of this Proposal, identify any civil litigation arising out of the performance of a procurement contract within the State of California in which any of the following was a named plaintiff or defendant in a lawsuit brought by or against the entity soliciting Proposals:
the Proposer submitting the instant Proposal, including any person who is an officer of, or in a managing position with, or has an ownership interest in the entity submitting the Proposal. Do not include litigation which is limited solely to enforcement of mechanics' liens or stop notices. Provide on the following page labeled “Civil Litigation History Information:” (i) the name and court case identification number of each case, (ii) the jurisdiction in which it was filed, and (iii) the outcome of the litigation, e.g., whether the case is pending, a judgment was entered, a settlement was reached, or the case was dismissed.

CIVIL LITIGATION DECLARATION
If the Proposer has no civil litigation history to report as described above, complete the following:

I, , am the ___________________________________
(Print Name) (Title with Proposing Entity)
of______________________________________________________ (hereinafter, “Proposer”). (Print Name of Proposing Entity)
In submitting a Proposal to the City of Cudahy, I hereby certify that neither Proposer nor any person who is an officer of, in a managing position with, or has an ownership interest in Proposer has been involved in civil litigation as described, above.

I declare under penalty of perjury that the foregoing is true and correct.

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Page 2 of 3 ends

CIVIL LITIGATION HISTORY INFORMATION
(1) Name of Case:

Court case identification number:
(2) Jurisdiction in which case was filed:
(3) Outcome of the case:
(1) Name of Case:

Court case identification number:
(2) Jurisdiction in which case was filed:

N/A

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Page 3 of 3 ends

(3) Outcome of the case:

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Page 1 of 2 ends

DEBARMENT CERTIFICATION
Proposer shall provide the certification requested below. Failure to provide such certification may result in a determination that the Proposer is nonresponsive. Failure to provide such certification truthfully and accurately may result in a determination that the Proposer is not responsible, and City may reject the proposal.

I, _____, am the __________________________________
(Print Name) (Title with Proposing Entity)
of______________________________________________________ (hereinafter, “Proposer”). (Print Name of Proposing Entity)
Proposer certifies to the best of its knowledge and belief, that it and its principals:
(a) [ ] Are [ ] are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from covered transactions by any Federal department or agency;
(b) [ ] Have [ ] have not within a three-year period preceding the submission of this Proposal been convicted of or had a civil judgment rendered against them for commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public (Federal, State or Local) transaction or contract under a public transaction; violation of Federal or State antitrust statutes or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property; (c) [ ] Are [ ] are not presently indicted for or otherwise criminally charged by a governmental entity (Federal, State or Local) with commission of any of the offenses enumerated in Paragraph (b) above; and
(d) [ ] Have [ ] have not within a three-year period preceding submission of this Proposal had one or more public transactions (Federal, State or Local) terminated for cause or default.

If reorganization, management turnover, or a shift or change of principals’ status occurs, written notice must be submitted within 21 days. Subsequent disclosure of unfavorable information will be subject to thorough review and remedial action. Updated versions of this certification may be requested on a routine basis
Ayoka Nurse CEO
Global Reach Strategies
X
X
X
X

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Page 2 of 2 ends

I declare under penalty of perjury that the foregoing is true and correct.

Executed this day of at
(month and year) (city and state)
by
(Signature of Person Responsible for Submitting Proposal on behalf of Proposer) [END OF DOCUMENT]
17th January 2023 Richmond, California

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City of Cudahy, California
Request for Proposal

CANNABIS CONSULTING SERVICES
Proposal from
Ponder Diversity Group LLC
January 19, 2023
Anita J. Ponder, Esq.

CEO & General Counsel
[email protected]
312.530.7900 (o)
312.504.8338 (c)

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1 January 19, 2023
TO: City of Cudahy
Office of the City Clerk
Juan Arauz, Director of Community Development
FROM: Ponder Diversity Group LLC
Anita Ponder, CEO & General Counsel (Contact Person)
233 S. Wacker Drive – Willis Tower, Suite 9305
Chicago, Illinois 60606
(312) 530-7990 (office)
(312) 504-8338 (cell)
RE: COVER LETTER TO WRITTEN RESPONSE TO RFP: Cannabis Consulting Services Ponder Diversity Group LLC (“PDG”) is pleased to submit its response to the City of Cudahy (“City”) Community Development Department regarding the above referenced bid solicitation.

PDG offers a wide variety of legal and consulting services to government agencies, as well as to nonprofit organizations, public and private companies, professionals, and entrepreneurs, including disadvantaged, minority, women-owned and veteran businesses. PDG has nationally acclaimed attorneys and teaming partners with significant experience in providing highly specialized professional services in cannabis law, diversity, equity, and inclusion (DEI), government contracts and government procurement. We have significant knowledge about the legalization, purchase, transportation and storage of cannabis and related regulations. We also have extensive experience with providing procurement diversity consulting services to local, state and federal agencies.

Founded in 2017, PDG is owned, controlled and managed by a minority woman, Anita Ponder, the Chief Executive Officer, General Counsel and an officer of the firm. PDG is comprised of highly exceptional lawyers, consultants and professional personnel who have unique and different backgrounds, experiences and expertise. We have approximately ten (10) attorneys, consultants, teaming partners and administrative staff at PDG. We are proud to report that most of them are diverse based on their ethnicity, race, gender and/or veteran status, and they have attained the highest performance reviews throughout their careers for their strong ethical standards, superb legal and/or consulting services, and outstanding professional accomplishments.

The corporate offices of PDG are in the Willis Tower in downtown Chicago. Although PDG is “lean and mean” - we have the capabilities, experience and financial resources to perform on a project of any magnitude. No matter is too large or too small for our law firm to deliver exceptional results. No client is too far for us to service. We have represented clients throughout Illinois, as well as nationwide.

I HAVE READ UNDERSTOOD, AND AGREED TO ALL STATEMENTS IN THIS REQUEST FOR PROPOSAL AND

ACKNOWLEDGE RECEIPT OF ALL ADDENDUMS/AMENDMENTS AS WELL AS TO THE TERMS, CONDITIONS, AND ATTACHMENTS REFERENCED.

We hope to have the opportunity to work with the City of Cudahy and would like to confirm that we have received all addenda for this solicitation. We thank you for your review and consideration of our proposal and welcome the opportunity to talk with you about it and answer any questions that you might have.

Sincerely,
Anita J. Ponder
CEO & General Counsel
Ponder Diversity Group LLC

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1 I. EXECUTIVE SUMMARY
a. Description of the Proposer’s Interest in the Project PDG has significant interest in providing cannabis consulting services to the City of Cudahy. This proposal responds to Component 1 and Component 2 of the RFP.
b. Initial Vision for the Work
PDG’s initial vision for the work includes providing cannabis consulting services on an on-call basis to the City of Cudahy. If selected to provide the services, PDG will be responsible for managing the processing of Commercial Cannabis Business Applications, including assisting City staff prepare application materials, developing an objective scoring rubric, in collaboration with City staff, completing a merit-based evaluation process for applicants, regular interface with City staff and other City consultants and attendance at regularly scheduled coordination meetings as necessary when work is in progress. c. Relevant Experience and Background
We handle matters that are directly related to the description of services in the RFP of the City of Cudahy.

We are currently the Social Equity Contractor for the State of Washington (Washington State Liquor and Cannabis Board/WSLCB) for which we are implementing a Social Equity Program. We are responsible for conducting a fair, impartial review of cannabis retail applications. Our cannabis consulting services include: evaluate social equity license applications and supporting documents; determine eligibility of applicants and score each application; evaluate supplement application materials; verify information provided by applicants; review WSLCB rules, laws and regulations; and draft workshop content.

We also have extensive experience with providing procurement diversity consulting services to local, state and federal agencies. Our attorneys have vast experience in developing and implementing Certification Programs for governmental agencies, as well as counseling agencies, Minority Business Enterprise/Women-Owned Business Enterprise (MBE/WBE) organizations and MBE/WBEs regarding a wide array of services related to their certification eligibility as Disadvantaged Business Enterprises (DBEs), Veteran-Owned Business Enterprises (VBEs), MBEs and WBEs.

Our proposed team for this engagement, attorneys Anita Ponder and Dragomir Tsvetenov, have over 40 years of combined certification experience. They have a success rate of nearly 100% in their representation of government agencies and applicants on MBE/WBE certification matters. Their certification recommendations and decisions have been consistently upheld on appeal by agencies and in court.
d. Contact Information
Name, Title and Email: Anita Ponder, CEO and General Counsel Company Name: Ponder Diversity Group LLC
Address: 233 S. Wacker Drive, Suite 9305, Chicago, Illinois 60606 Telephone Number: (312) 530-7990
Email Address: [email protected]

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2 II. Project Approach
a. Implementation Plan
PDG will commence our proposed scope of work starting February 7, 2023 and ending on September 31, 2023. The proposed project managers will be Anita Ponder and Dragomir Tsvetenov. The proposed teaming partners will be Sandy Stein Law LLC, an established law firm with significant experience in handling cannabis law matters nationwide and Inner-City Group, a certified MBE and leading IT consulting firm for the State of Illinois.

PDG proposes to provide cannabis consulting services to the City of Cudahy. Our proposal responds to all components of the RFP: Component 1 and Component 2. Our implementation Plan includes the performance of the following tasks:
● Determine eligibility for license applications (Estimated Timeline – depends on the application windows and number of applications received)
o Provide written and oral assistance to applicants as required o Conduct initial review of application to determine that it is accurate, complete with current information and the required materials, and properly executed by an authorized representative
o Request, obtain and review supplemental application materials from applicants o Conduct legal analysis of each completed application to ensure that successful Social Equity applicants meet the eligibility requirements
o Score each completed application
o Determine license eligibility of each applicant pursuant to the eligibility requirements o Document legal basis to support eligibility recommendation o Provide scores and recommendations to grant or deny license to the City of Cudahy for review and approval pursuant to the eligibility requirements o Review final decision of the City of Cudahy to grant or deny license o Notify applicant, in writing, of final decision of the City of Cudahy ● Develop scoring rubric and determine the applicant’s rank (Estimated Timeline – one month) o Develop draft scoring rubric
o Develop final scoring rubric with input from the City of Cudahy o Applicants who meet the requirements to be an applicant shall be scored using the rubric to rank the applicants for licensure
o Determine the applicant’s rank by using the scoring rubric o Verify information provided by the applicant
o Submit a list of ranked applicants to the City of Cudahy, accompanied by the documentation to support the ranking and verification
o Determine whether supplemental application materials are required from the applicant o Request supplemental application materials from the applicant o Review supplemental application materials from the applicant

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3 ● Verify information provided by the applicant (Estimated Timeline - depends on supporting documents submitted by applicant)
o Provide quantitative and qualitative analysis of each application o Determine whether information provided by applicant is accurate and current o Request supporting documentation from applicant as required and/or requested by the City of Cudahy
● Provide information for applicant workshops (Estimated Timeline – one month) o Provide detailed instructions and resources about how applicants can submit supplemental application materials for both virtual and in-person workshops conducted by the City of Cudahy and PDG
o Prepare overview of proposed PowerPoint presentation of the application process and review criteria.
o Obtain feedback from the City of Cudahy on our proposed PowerPoint presentation o Prepare and submit draft PowerPoint presentation to the City of Cudahy for review and comment
o Incorporate comments from the City of Cudahy into the draft PowerPoint presentation and prepare final presentation for the City of Cudahy approval o Conduct dry run of PowerPoint presentation for the City of Cudahy ● Provide translation services for applicants for whom English is not their primary language (Estimated Timeline – thoughout contract term)
● Provide testimony in administrative and superior court hearings at the request of the City of Cudahy (Estimated Timeline – depends on the applications windows and number of applications received)
o Communicate with the City of Cudahy regarding administrative and superior court hearings at which our testimony is requested by the City of Cudahy o Prepare for our testimony in administrative and superior court hearings o Attend administrative and superior court hearings at the request of the City of Cudahy o Provide testimony in administrative and superior court hearing b. Description of Efforts to Achieve Client Satisfaction and to satisfy the Scope of Work (Estimated Timeline – throughout contract term)
● Attend meetings with the City of Cudahy to provide status updates ● Provide written progress reports to the City of Cudahy as agreed ● PDG will follow directions and/or orders from the designated City Representative ● PDG will not accept directions or orders from any person other than the City Representative or their designee
● PDG’s Representatives (Anita Ponder and Dragomir Tsvetenov) will supervise and direct the performance of work, using their best skill and attention, and will be responsible for all means, methods, techniques, sequences and procedures and for the satisfactory coordination of all portions of the work ● PDG will work closely with City staff in the performance of the work and will be available to City staff and the City Representative at all reasonable times

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4 ● PDG will perform all work skillfully, competently and to the highest standards ● PDG will perform the services in a timely manner throughout the contract term ● PDG will perform all work in a manner reasonably satisfactory to the City of Cudahy ● PDG will comply with all applicable Federal, State and local laws and regulations ● PDG understands the nature and scope of the work to be performed ● All of PDG’s employees and agents, including its teaming partners, possess sufficient skill, knowledge, training and experience to perform all services and tasks assigned to them by PDG
● PDG’s employees and agents,including its teaming partners, possess all licenses, permits, certificates, qualifications and approvals that are legally required to perform the tasks and services
c. Overall timeline for each task
● Determine eligibility for license applications (Estimated Timeline – depends on the applications windows and number of applications received) ● Develop scoring rubric and determine the applicant’s rank (Estimated Timeline – one month)
● Verify information provided by the applicant (Estimated Timeline - depends on supporting documents submitted by applicant)
● Provide information for applicant workshops (Estimated Timeline – one month) ● Provide translation services for applicants for whom English is not their primary language (Estimated Timeline – throughout contract term) ● Provide testimony in administrative and superior court hearings, at the request of the City of Cudahy (Estimated Timeline – depends on the application windows and number of applications received)
d. Detailed description of specific tasks required from City Staff ● Provide all relevant cannabis and related statutes, rules, regulations and policies to PDG
● Confirm scope of work to be performed
● Respond promptly to PDG inquiries
● Attend regular status meetings with PDG
● Provide prompt feedback to PDG on deliverables
● Provide information to community regarding application process ● Provide PDG with a list of all applicants during each application window (or on an ongoing basis)
● Make final decisions regarding Cannabis Retailer Business Applications based on scoring and ranking provided by PDG
● Notify applicants of final decisions
● Prompt processing and payment of invoices submitted by PDG III. Firm Qualifications
a. Services to Government Agencies
Government Procurement. We provide services to government agencies by drafting procurement policies and contract terms/conditions, including those related to the participation of minority and women

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5 businesses on government contracts. We also represent agencies in connection with their communication strategies and legislation involving government agreements and contracts, procurement policies and procedures, capital plans, bond financing and tax-increment financing relating to their diverse stakeholders.

DEI Evaluation and Consulting. We provide diversity evaluation and consulting services to government agencies in connection with their policies, initiatives and programs for minority and women businesses, as well as persons who live in disproportionately impacted areas. We evaluate governmental rules, laws, and regulations regarding diversity programs and eligibility requirements. We conduct workshops and PowerPoint presentations to businesses and individuals, and prepare workshop content. We also have extensive experience in drafting and evaluating all types of governmental application forms and supporting documents from businesses and individuals who seek to participate in governmental programs.

Certification Eligibility. We counsel governmental agencies and MBE/WBE organizations, as attorneys and/or employees, regarding a wide array of services related to certification applications from small businesses that seek to be certified as DBE/VBE/MBE/WBEs. Our services involve the requests by these businesses to obtain certification eligibility in connection with their:
o 8(a) Applications
o DBE/VBE/MBE/WBE Certification Applications
o DBE/VBE/MBE/WBE Certification Denials and Appeals
o DBE/VBE/MBE/WBE Certification Expansion Requests
o Corporate Reorganizations
We have extensive experience in performing the following tasks for governmental agencies and/or DBE/MBE/WBEs in the certification application process:
 Evaluate and draft certification application regulations, policies and procedures  Review certification applications and related business documents  Verify information provided by certification applicants  Interview certification applicants regarding the ownership and control of their business  Request outstanding and/or additional information and documents from certification applicants
 Determine eligibility of certification applicants
 Legally justify certification recommendations and decisions to applicants, their representatives, appellate agencies and at court hearings  Draft letter of certification denial to applicants who do not meet eligibility requirements  Draft letter of certification to applicants who qualify for eligibility  Prepare materials and presentations for certification workshops  Provide testimony in administrative and court hearings ● Solicitation and Contract Drafting, Modification and Negotiation. We draft solicitations, and modify and negotiate contract agreements to facilitate cooperation and prevent disputes among contractors, subcontractors, suppliers and government agencies. We assist clients in forming strategic partnerships and preparing agreements to document such relationships, including:
o Subcontract Agreements with DBE/VBE/MBE/WBEs

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6 o Teaming Agreements with DBE/VBE/MBE/WBEs
o Mentor-Protégé Agreements with DBE/VBE/MBE/WBEs
o Joint Venture Agreements with DBE/VBE/MBE/WBEs
● Contract Compliance and Monitoring. We provide consultation to clients regarding key contract compliance subject matter requirements. Compliance with the laws, regulations and requirements that apply to government contractors and agencies can be extremely difficult to navigate. We assist clients with not only developing effective government and corporate compliance programs, but also, with demonstrating their professional ethics and/or corporate responsibility. We counsel clients on:
o Small Business Subcontracting Plans
o DBE/VBE/MBE/WBE Subcontracting Plans and Utilization Reports o Contract Participation Waiver Process
o DBE/VBE/MBE/WBE Policy and Procedure Manuals
o Training Employees and Subcontractors Regarding DBE/VBE/MBE/WBE Contract Compliance and Monitoring Requirements
o Legal and Contract Remedies Available to Government Agencies o Penalties Assessed Against Government Contractors for Noncompliance to DBE/VBE/MBE/WBE Programs Nationwide
o Government and Internal Audits and Investigations
o Contract Disputes
● Government Codes of Conduct. We draft Codes of Conduct for government agencies which seek to enforce high professional and business standards and right conduct by their employees and vendors. A Code of Conduct is the central guide regarding their core values, vision, and standards of conduct, to assure that government employees and vendors perform their work and conduct business with honesty and integrity. A Code of Conduct is intended to help employees and vendors, as well as other stakeholders to learn or better understand the legal and ethical policies that govern their decision making on a daily basis.

It is also intended to help prevent employees and vendors from violating their laws and regulations by providing a comprehensive list of actions that are appropriate and expected of them. The Codes of Conduct that we have drafted and related training content have included diversity programs and policies.
● Training. We create training content relating to supplier diversity, public procurement disparities, and diverse supplier outreach for over 100 hundred organizations including government agencies (federal, state and local), bar associations, not-for-profit business organizations, educational institutions, industry associations and private companies.

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7 IV. Proposer Qualifications and Experience
a. Work Samples
Please see Exhibits 3 through 15 for PDG Work Samples.
b. Training, Education and Certifications
PDG attorneys have undergraduate degrees and law degrees from high-ranking law schools, and are barred and qualified to practice law. They also have significant legal training and certifications in their practice areas.
c. Personnel
Our proposed PDG project team for this engagement will consist of Anita Ponder, Esq. and Dragomir Tsvetenov, Esq. Ms. Ponder will be the primary contact person and relationship partner for this proposed engagement.

Anita Ponder and Dragomir Tsvetenov will be responsible for performing and completing this engagement along with teaming partners of PDG, Sandy Stein Law LLC and Inner-City Group. Below are the resumes of Anita Ponder, Dragomir Tsvetenov, Sandy Stein Law LLC and Inner-City Group.

Anita Ponder
Anita Ponder is one of the nation’s leading attorneys in the practice area of government contracts, diversity, equity and inclusion, and small businesses. She is the Chief Executive Officer and General Counsel for PDG who founded the firm approximately five (5) years ago. She was most recently a partner and the Director of Government Contracts at QPWB. After more than thirty (30) years of providing consultation, strategic guidance, training and advocacy to government agencies, nonprofit organizations and government contractors including minority, women-owned and veteran businesses, Ms. Ponder brings to PDG and its clients extensive legal and consulting experience in diversity, equity and inclusion in connection with government procurement and contracting, bidding, contract compliance and small business matters.

Dragomir Tsvetenov
Dragomir Tsvetenov focuses his practice in the areas of diversity, equity and inclusion, focusing on government contract and procurement law, administrative law, government affairs, corporate law, construction law, contract compliance and related employment matters. He is the Managing Counsel for PDG who most recently served in an Of Counsel position at QPWB. Mr. Tsvetenov has worked with Anita Ponder during the past five (5) years in representing and/or providing consultation relating to a number of municipalities and government agencies in the nation, as well as Fortune 500 companies, nonprofit organizations and government contractors.

Sanford Stein Law LLC
Sanford Stein Law LLC has experienced and highly skilled attorneys and business advisors in all aspects of government-driven legal matters including legislation, regulations, lobbying and litigation. They counsel private sector clients and manage their relationships with government. They are leaders in the fight for cannabis legalization and common-sense cannabis regulations. They have assisted with cannabis legislation and rulemaking, regulatory compliance, business development, real estate, finance, banking, license applications, Tribal Government counseling and zoning for cannabis businesses in several states. Sanford Stein is owned by Sanford M. Stein who is a prominent attorney with over 40 years of experience practicing law.

Inner-City Group
Inner-City Group of companies share common ownership and mission. From their start-up more than 24 years ago, they remain true to one mission - to help their clients and community succeed by helping their clients and community manage risk. Inner-City Group is owned and controlled by Matthew Cooper. Inner-City is an established MBE that provides highly specialized software and technology services to government agencies and privately owned companies by utilizing a variety of SaaS tools. Inner-City is currently a teaming partner of PDG on its current engagement with the Washington State Liquor and Cannabis Board (WSLCB).

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8 d. Qualifications and Experience
Washington State Liquor and Cannabis Board (WSLCB)
An engagement with WSLCB to implement a Social Equity Program to conduct a fair, impartial review of cannabis retail applications for the WSLCB Social Equity Program. We are currently performing this project which ends in 2024 with options to extend. Our DEI services include: evaluate social equity license applications and supporting documents from applicants; determine eligibility of applicants and score each application; ensure that applicants are identified in only one application; identify the preferred jurisdiction selected by each applicant; determine the applicant’s rank by preferred jurisdiction using a scoring rubric; evaluate supplemental application materials from applicants; verify information provided by applicants; identify current title certificate holders for retail cannabis and determine whether they meet the minimum social equity requirements; review WSLCB rules, laws and regulations governing the social equity program; draft workshop content and presentation; provide translation services for applicants; and provide testimony in court hearings.

Illinois Tollway/Inner-City Group
An engagement with the Illinois Tollway Technical Assistance Program, which is designed to prepare emerging and established transportation-related construction and professional engineering services firms with small, diverse and veteran-owned businesses to participate on highway and vertical construction projects.

Participants receive comprehensive, customized business development assistance to build financial understanding and business plan development for increased business stability and growth in the transportation-related construction industry. Services are customized to the assessed strengths, challenges and needs of participating firms. The legal services of PDG consist of contract review and related training workshops. The Program offers construction companies and professional engineering firms with consultation on general business and construction-specific operations.

State of Illinois Executive Ethics Commission
An engagement with the State of Illinois Executive Ethics Commission to provide DEI/social equity consulting and related legal services that included: writing administrative rules to implement the Request for Proposal (RFP) Commitment to Diversity requirement as outlined in the Illinois Procurement Code; writing a minimum of six (6) new objective elements that can be scored under RFP Commitment to Diversity and prepare a rubric that will guide evaluators on how best to score the recommended elements; writing justification and provide supporting evidence that the selected Commitment to Diversity elements best represent a firm’s commitment to diversity which included court cases where the element was challenged; and writing and formatting the RFP template instructions for Commitment to Diversity. In order to perform these tasks, comprehensive, nationwide DEI/social equity research was conducted.

Chicago Public Schools, Chicago, Illinois
An engagement with the Chicago Public Schools (CPS) to provide legal support in connection with their solicitation of fourteen (14) separate government contracts. Under that engagement, we were able to manage and facilitate the development of fourteen (14) Solicitations from drafting to final contract award. These contracts required our preparation and counsel, in every area including the supplier diversity contract participation goals.

Chicago Department of Aviation
An engagement with the Chicago Department of Aviation in which we assisted the department in producing a comprehensive Code of Conduct governing employees and City vendors, which included DEI related topics.

CDA was seeking to enforce high professional and business standards and right conduct by their employees and vendors. A Code of Conduct is the central guide regarding their core values, vision, and standards of conduct, to assure that government employees and vendors perform their work and conduct business with honesty and integrity. A Code of Conduct is intended to help employees and vendors, as well as other stakeholders to learn or better understand the legal and ethical policies that govern their decision-making on a daily basis. It is also intended to help prevent employees and vendors from violating their laws and regulations by providing a comprehensive list of actions that are appropriate and expected of them.

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9 Chicago Housing Authority
Engagements with the Chicago Housing Authority (CHA) to provide legal services to Section 3 business owners.

The CHA has approximately 700 businesses self-certified in its Section 3 system. Businesses range from construction, professional services, supply and delivery.

Illinois Tollway
Legal analyses of constitutional issues for the Illinois Tollway regarding its Earned Credit Program, a bid credit incentive program that allows any construction contractor or subcontractor to earn virtual dollar credits, or bid credits, that may be used toward future Tollway construction bids. The objective of the Earned Credit Program is to encourage contractors, subcontractors and fabricators to hire qualified Earned Credit Program (ECP) candidates and assist local workforce development efforts to employ and retain qualified and eligible Workforce Innovation and Opportunity Act (WIOA) eligible individuals, including, African Americans, Asians, Hispanic, Ex-Offender, Exonerated Individuals, Females and Veterans and other traditionally underserved populations. The hiring firm can earn bid credits that may be used toward future Tollway construction bids. A bidder can apply incentive bid credits to lower their bid amount and increase the chances of winning the contract as the low bidder.

Illinois Department of Central Management Services
Nationwide research for the Illinois Department of Central Management Services (CMS) which included recommendations that led to changes and modifications of the State’s Business Enterprise Program (BEP). CMS sought to find ways to increase the participation of diverse firms in the State’s procurement process. The following professional services were provided to CMS: 1) comprehensive legal research regarding other business enterprise programs relating to goods and services, including an examination of case law challenging the constitutionality of the programs; 2) a risk analysis of the programs; 3) a summary of the findings; 4) legal analyses; and 5) proposed recommendations of specific policies, procedures that might be implemented.

Chicago Department of Procurement Services
Various projects for the Chicago Department of Procurement Services which included legal research, legal analysis and recommendations which led to changes and modification of the City’s DBE/MBE/WBE Program and related policies and procedures. The projects included: 1) evaluated and improved the City of Chicago’s contract compliance and monitoring process for determining DBE/MBE/WBE contract participation on City contracts; 2) prepared a DBE and MBE/WBE Contracting and Compliance Manual which outlines the procedures, provisions, and compliance requirements to support and comply with the MBE/WBE Procurement Program and MBE/WBE Construction Program Ordinances; 3) coordinated and implemented the first annual City-sponsored Construction Management Training Program for DBE/MBE/WBEs; and 4) drafted the City of Chicago DBE/MBE/WBE and EEO Contract Monitoring and Compliance Manual of Operating Procedures. e. Office location of key personnel proposed to work on this contract All PDG staff will work primarily out of PDG corporate offices which are located at the Willis Tower in downtown Chicago at 233 S. Wacker Drive Suite 9305.

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10 V. Proposed Personnel
Anita J. Ponder
CEO & General Counsel, Ponder Diversity Group (PDG)
Anita J. Ponder is the CEO and General Counsel for PDG. She was recently a partner, DEI Lead, and the Director of the Chicago Government Contracts Group at Quintairos, Prieto, Wood & Boyer, P.A. (QPWB). After more than 30 years of providing consultation, strategic guidance, training and advocacy to government contractors and agencies, Ms. Ponder brings to the firm extensive legal and DEI consulting experience in government procurement and contracting, bidding, contract compliance, supplier diversity and related employment matters. It is a truth universally acknowledged that no matter where she shows up, Anita Ponder is always prepared and determined to achieve her client’s goals.

Ms. Ponder represents government agencies and nonprofit business organizations nationwide. She also represents industry leaders, including Fortune 500 corporations, large businesses, mid-sized and small businesses, including disadvantaged, minority, women and veteran-owned businesses. Ms. Ponder has been one of the nation’s most effective advocates of DEI and supplier diversity in the public and private sectors. Throughout her distinguished professional career, she has been a strong proponent for the development, promotion and inclusion of diverse employees and DBE/MBE/WBEs on federal, State and local contracts. As an experienced attorney who has extensively studied and continues to monitor case law, rules, regulations, policies and best practices governing DEI and supplier diversity nationwide, she has helped her clients in the private and public sectors to develop and/or significantly improve their DEI and supplier diversity program and achieve their related governmental or business goals.

Some of Ms. Ponder’s recent legal and DEI accomplishments include: developing a Social Equity in Cannabis Program; preparing a comprehensive DEI framework, administrative rules, objective DEI elements, rubric and RFP template instructions to implement existing DEI legislation for a State agency; developing and implementing a small business certification initiative that provides legal and business consulting servicesto DBE/MBE/WBE/VBE applicants in connection with their certification applications to certifying agencies nationwide; reviewing and modifying governmental solicitations and contracts of governmental agencies and related bid proposals; drafting a comprehensive Code of Conduct with DEI policies for a major governmental agency and one of the nation’s largest airport systems; providing legal and consulting services to Section 3 and Resident Owned businesses; and preparing a comprehensive 50 State memorandum on key government procurement, bidding and lobbyist requirements. Each of these legal accomplishments not only helped her clients to achieve their business goals.

Prior to joining QPWB in 2018, Ms. Ponder was a partner at the in the law firm of Seyfarth Shaw LLP in the Government Contracts and Construction Law Practice Groups. Some of her major legal and DEI consulting accomplishments at Seyfarth include: conducting a nationwide research project to examine government purchasing policies and procedures, and related case law, in connection with state and local minority and women business enterprise (MBE/WBE) programs; preparing a comprehensive DEI report recommending best diversity and innovative practices, policies and procedures; providing consultation to public housing authorities (PHAs) in connection with their efforts to promote economic development, neighborhood economic improvement, DEI and individual self-sufficiency by low-income, minority residents; defending government contractors in governmental investigations and debarment proceedings related to allegations of misconduct on government contracts; and conducting DBE/MBE/WBE government project

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11 audits and providing related DEI and contract compliance training to government agencies and construction contractors.

Before she worked at Seyfarth Shaw, Ms. Ponder was a partner at the law firm of Drinker Biddle & Reath (DBR), formerly Gardner Carton & Douglas, and practiced in the Government Regulation, Lobbying and Advocacy Department. Prior to DBR, she worked at the law firm of Quarles & Brady. Some of her major legal and DEI accomplishments at DBR and Quarles & Brady include: providing government relations services to government contractors in various industries in connection with State regulatory hearings; conducting nationwide DEI research to examine government purchasing policies and procedures in connection with MBE/WBE programs; representing construction contractors in government debarment proceedings in connection with issues related to DBE/MBE/WBE compliance; and providing government relations and government contractservicesto government contractorsin connection withmajorspending programs of the City of Chicago, State of Illinois, Cook County and federal government.

Ms. Ponder has been one of the nation’s most effective advocates of DEI and supplier diversity in the public and private sectors. Throughout her distinguished professional career, she has been a strong proponent for the development, promotion and inclusion of diverse individuals and MBE/WBEs on federal, State and local contracts. As an experienced attorney who is knowledgeable ofthe case law, rules, regulations, policies and best practices governing DEI and supplier diversity nationwide, she has helped to develop or significantly improve a number of DEI strategies and supplier diversity programs in the private and public sectors.

Ms. Ponder started her career after law school with the City of Chicago in the administration of Mayor Harold Washington in the Departments of Public Works as a Contract Compliance Specialist and subsequently, in the Procurement Services Department as the Coordinator of Contract Compliance and Director of Contract Compliance, where she was responsible for the development and implementation of the City’s DBE/MBE/WBE and EEO programs. Some of her responsibilities for the City of Chicago included:
developing, implementing and monitoring administrative rules and regulations applicable to over 3,000 contracts annually totaling over $700M; drafting and negotiating major contract terms and conditions; resolving contract disputes between the City, its prime contractors and their subcontractors; and developing and implementing regulations governing DBE/MBE/WBE certification.

Ms. Ponder received her J.D. from the University of Florida Holland Law Center in Gainesville, Florida and her B.A. with honors in public administration and political science from Fisk University in Nashville, Tennessee. She is admitted to the bars of the State of Illinois and the United States District Court for the Northern District of Illinois. She has received a number of commendations and awards from government agencies, government officials and business groups for her outstanding achievements in advancing diversity, equity and inclusion of minorities, women and other diverse individuals throughout her legal career.

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12 Dragomir A. Tsvetenov
Managing Counsel, Ponder Diversity Group (PDG)
Dragomir A. Tsvetenov is the Managing Counsel at Ponder Diversity Group. Prior to that, he held an of-counsel position in the Chicago office of Quintairos, Prieto, Wood & Boyer, P.A. He focuses his practice in the areas of government contract and procurement law, administrative law, government affairs, public finance and commercial transactions.

Mr. Tsvetnov’s experience includes (i) consultation to bidders/ contractors, government agencies and major corporations regard¬ing government procurement regulations, laws and policies; (ii) preparation of responses to Requests for Information (RFIs) and Re¬quests for Proposals (RFPs); (iii) preparation of subcontracting plans which specify the commitment of government bidders to subcontract with businesses in designed contract groups including small business owners, women, minorities, veterans, persons with disabilities; (iv) interpretation, negotiation and drafting of government contracts, contract modifications, and subcontract agreements; (v) representation of disadvantaged, women and minority business enterprises (D/W/MBEs) to obtain certification eligibility in connection with D/W/MBE contract participation requirements and the preparation of D/W/MBE certification applications, (vi) representation of government agencies and businesses in connection with their communication strategies and legislation involving government agreements and contracts, procurement policies and procedures, bond financing and tax increment financing; (vii) consultation with bidders/ proposers in connection with the formation of strategic contracting alliances, identification of prospective bidding opportunities and business development resources and (viii) Technology Data Licensing Agreements for a Multinational Finance Corporation, and (ix) Bond Co-Counsel legal services to the City of Chicago.

Mr. Tsvetenov received his Juris Doctor from the University of Florida, Levin College of Law in May 2017 and Bachelor of Science cum laude from Jacksonville University in May 2014 having studied Political Science.

Mr. Tsvetenov is a veteran, having served in the United States Navy from July 2012 to May 2007. Among his duty stations, Mr. Tsvetenov served on the U.S.S. George Washington (CVN-73) in Yokosuka, Japan; and at the U.S. Naval Hospital at Guantanamo Bay, Cuba to support Operation Enduring Freedom and Caribbean Operations aboard an overseas naval station.

Mr. Tsvetenov is licensed to practice law in Illinois.

TEAMING PARTNER: Matthew Cooper, Inner-City Group of Companies Matthew Cooper is the Team Leader for the Inner-City Underwriting Agency Tollway Technical Assistance Team.

Matthew Cooper is President of Inner-City Underwriting Agency Inc. and Community Insurance Center, a division of Inner-City Underwriting Agency Inc.

Inner-City Underwriting Agency Inc is a certified MBE\DBE insurance brokerage, consulting and technology company.

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13 Community Insurance Center acquired by Inner-City Underwriting in 2015, is a full-service insurance and risk management services company, with a 55-year history of providing the best the insurance industry has to diverse communities. Matthew Cooper has more than 25 years of insurance brokerage, risk management consulting and underwriting experience. Inner-City is an established MBE that provides highly specialized software and technology services to government agencies and privately owned companies by utilizing a variety of SaaS tools. Inner-City is currently a teaming partner of PDG on its current engagement with the Washington State Liquor and Cannabis Board (WSLCB).

TEAMING PARTNER: Sanford M. Stein, Sandy Stein LLC
For more than 40 years, Sanford Stein has served governmental and private sector clients in an array of legislative, regulatory and judicial activities. Combining his skills in business and government relations law, he has extensive experience in infrastructure development, public finance and public-private partnership economic
development, government regulations and procurement. With that background, he is also a leading authority in the regulated cannabis industry in the United States.

He began his practice with the U.S. Environmental Protection Agency, where he was responsible for numerous enforcement and policy matters. His practice today encompasses a broad array of business regulatory matters in Illinois and across the country. He also is active in international trade matters, particularly in China, Central America and South America.

He is a leader in the fight for cannabis legalization and common sense cannabis regulations. He has assisted with cannabis legislation and rulemaking, regulatory compliance, business development, real estate, finance, banking, license applications, Tribal Government counseling and zoning for cannabis businesses in several states.

Mr. Stein is involved in international cannabis legalization having appeared before the Health Committee of the House of Representatives of the Federal Republic of Brazil, advising on proposed national medical cannabis legislation in Brazil.

Starting with early experience with laws in other highly regulated industries, such as environmental and energy, he understands the pathway to licenses and permits for cannabis cultivation, processing and retail sales. Working with top physicians, he is also knowledgeable on the science of medical cannabis and patient care. Mr. Stein’s experience extends to Cannabis Sativa and Cannabis Indica products, as well as Cannabis Sativa L, also known as hemp. He counsels on the use of hemp derived cannabinoids including CBD isolate and distillate, broad spectrum THC free oils, and isolates of CBN and CBG.

He is an author and lecturer on cannabis law and business, having appeared before the New York Institute of Credit, the Illinois State Bar Association, My Compassion and other distinguished groups.

His law practice is also highlighted by his work for land developers in brownfield redevelopment, annexation, urban development, zoning and land use litigation. He has been successful in complex mixeduse developments and commercial, industrial and residential projects. He also is skilled in municipal tax incentive programs, including tax increment financing, sales tax sharing programs and special service area financing.

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14 He has significant experience in energy and environmental law, including biofuels and biomass conversion, waste-to-energy technology, energy finance, wind turbine and photovoltaic siting, battery technology, carbon reduction and green buildings.

He appeared and successfully argued before the United States Supreme Court in The Steel Company v.

Citizens for a Better Environment.

He counsels clients on the environmental and energy aspects of mergers, acquisitions and property matters, as well as day-to-day operational matters and finding means for implementation of alternative energy systems. He has been a registered lobbyist in the United States and several states.

VI. References

WASHINGTON STATE LIQUOR AND CANNABIS BOARD
Rebecca Smith, Director of Licensing and Regulation
1025 Union Ave. SE
PO Box 43098
Olympia, Washington 98501
(360) 664-4680
[email protected]

CITY OF CHICAGO

DEPARTMENT OF PROCUREMENT SERVICES

CHICAGO DEPARTMENT OF AVIATION
Mayor Lori Lightfoot
CDA Commissioner Jamie Rhee
(Former Chief Procurement Officer for the City of Chicago Department of Procurement Services)
Chicago Department of Aviation
10510 W. Zemke Road
Chicago, Illinois 60666
(773) 894-5492 (office)
[email protected]

COOK COUNTY

DEPARTMENT OF PUBLIC HEALTH
Shannon Andrews
Chief Equity and Inclusion Officer
Administrative Office, 7556 Jackson Boulevard
Forest Park, IL 60130
(708) 836-8600

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15 REGIONAL TRANSPORTATION AUTHORITY, Board Member

WYNDALCO ENTERPRISES, LLC, CEO

GOVERNMENT CONTRACTORS BUSINESS FORUM (GCBF)
GCBF PROCUREMENT COUNCIL, Former Chair
David R. Andalcio
19081 Old LaGrange Road
Mokena, Illinois 60448
(312) 256-9091 (office)
(312) 304-1010 (mobile)
[email protected]

STATE OF ILLINOIS
Alexandria Wilson
Procurement Diversity, Equity, and Inclusion Manager
401 South Spring Street
513 Stratton Office Building
Springfield, Illinois 62706
(217) 685-0569 (office)
[email protected]

STATE OF ILLINOIS
Ellen Daley
Chief Procurement Officer
401 South Spring Street
513 Stratton Office Building
Springfield, Illinois 62706
(312) 415-9612 (office)
[email protected]

STATE OF ILLINOIS
John Donato
Chief Procurement Officer – Public Institutions of Higher Education 401 South Spring Street
513 Stratton Office Building
Springfield, Illinois 62706
(312) 350-7676 (mobile)
[email protected]

CITY OF ATLANTA

ATLANTA HOUSING AUTHORITY
Eugene Jones
CEO Atlanta Housing Authority (Former CEO Chicago Housing Authority) 230 John Wesley Dobbs Ave NE
Atlanta, GA 30303
(404) 892-4700

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16 CHICAGO PUBLIC SCHOOLS
Pamela Blackwell
Project Manager
1631 South Michigan Ave Unit 102
Chicago, IL 60616
(312) 513-3221 (direct)
[email protected]
VII. Fee Schedule
Services Cost One Time Cost Ongoing Cost Optional
Services/Expenses
Creating Application
Submittal Guidelines $5,000 X
Creating Merit based
and Objective
Evaluation Criteria
$10,000 X
Developing a PointBased Scoring Rubric $5,000 X
Development of
Cannabis Regulations
and Publishing
Materials
$10,000 X
Building Plan Checks $150/hour X
Onsite Facility
Inspections $150/hour X
Financial Audits $150/hour X
Ongoing Support $150/hour X X
Independent
Application Review
$2,000 per
application X
Presentations
$2,400 per
presentation
(virtual)
$150/hour (inperson)
X X
Travel Expenses
(Lodging, Meals, and
Transportation)
$700.00 per
attorney (round
trip travel). $450
per day per
attorney (hotel,
meals,
transportation).

X X

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17 Services Cost One Time Cost Ongoing Cost Optional
Services/Expenses
Communications
(client, internal,
meetings, etc.)
$150/hour X
Electronic
Component $75,000 X X
Research/Analysis $25,000 X
Application
Document $10,000 X
Other Professional
Services Requested $150.00/hour X X
VIII. False Claims, Debarment and Civil Litigation History (See Exhibit 1)
IX. Conflict of Interest Disclosure Statement
(See Exhibit 2)

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EXHIBIT 1

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FALSE CLAIMS ACT CERTIFICATION/

FALSE CLAIMS ACT VIOLATION HISTORY
Proposer shall provide either the certification requested below or the information requested on the next page.

FALSE CLAIMS ACT CERTIFICATION
If the Proposer has no False Claims Act violations as defined above, complete the following:

I declare under penalty of perjury that the foregoing is true and correct.

Executed this day of at
(month and year) (city and state)
By
(Signature of Person Responsible for Submitting Proposal on behalf of Proposer)

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FALSE CLAIMS ACT VIOLATION HISTORY
(1) Date of Determination of Violation:

(2) Identity of tribunal or court and case name or number, if any:
(3) Government Contract or project involved:
(4) Government agency involved:
(5) Amount of fine imposed:

(6) Exculpatory Information:

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Page 1 of 2 ends

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I declare under penalty of perjury that the foregoing is true and correct.

Executed this day of at
(month and year) (city and state)
by
(Signature of Person Responsible for Submitting Proposal on behalf of Proposer) [END OF DOCUMENT]

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CIVIL LITIGATION DECLARATION/

CIVIL LITIGATION HISTORY
Proposer shall provide either the declaration requested below or information requested on the next page.

CIVIL LITIGATION DECLARATION
If the Proposer has no civil litigation history to report as described above, complete the following:

I, , am the ___________________________________
(Print Name) (Title with Proposing Entity)
of______________________________________________________ (hereinafter, “Proposer”). (Print Name of Proposing Entity)
In submitting a Proposal to the City of Cudahy, I hereby certify that neither Proposer nor any person who is an officer of, in a managing position with, or has an ownership interest in Proposer has been involved in civil litigation as described, above.

I declare under penalty of perjury that the foregoing is true and correct.

Executed this day of at
(month and year) (city and state)
by
(Signature of Person Responsible for Submitting Proposal on behalf of Proposer)

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CIVIL LITIGATION HISTORY INFORMATION
(1) Name of Case:

Court case identification number:
(2) Jurisdiction in which case was filed:

(3) Outcome of the case:

(1) Name of Case:

Court case identification number:
(2) Jurisdiction in which case was filed:

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Page 3 of 3 ends

(3) Outcome of the case:

Executed this day of at
(month and year) (city and state)
by
(Signature of Person Responsible for Submitting Proposal on behalf of Proposer) [END OF DOCUMENT]

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EXHIBIT 2

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CONFLICT OF INTEREST

CERTIFICATION/DISCLOSURE
Proposer shall provide either the certification requested below, or information requested on the next page.

I declare under penalty of perjury that the foregoing is true and correct.

Executed this day of at
(month and year) (city and state)
by
(Signature of Person Responsible for Submitting Proposal on behalf of Proposer)

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CONFLICT OF INTEREST DISCLOSURE
Please describe any real or potential conflict of interest (if any):

Attach additional sheets, if necessary.

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Executed this day of at
(month and year) (city and state)
by
(Signature of Person Responsible for Submitting Proposal on behalf of Proposer) [END OF DOCUMENT]

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EXHIBIT 3

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2 MEMORANDUM
TO: Washington State Liquor and Cannabis Board
Rebecca Smith, Director of Licensing and Regulation
Jeanne McShane, Deputy Director of Licensing and Regulation Kaitlin Bamba, Senior Policy and Education Manager, Licensing and Regulation Sarah Davis, Cannabis Social Equity Case Manager, Licensing and Regulation Linda Thompson, Cannabis Manager, Licensing and Regulation Nicola Reid, Compliance and Adjudications Manager, Licensing and Regulation Beth Lehman, Customer Service and Support Manager, Licensing and Regulation Tina Huesca, Administrative Assistant to Rebecca Smith, Licensing and Regulation

FROM: Quintairos, Prieto, Wood & Boyer P.A.

Anita Ponder, Esq.

Dragomir Tsvetenov, Esq.

DATE: October 28, 2022
RE: PROPOSED WORKSHOP CONTENT FOR WSLCB SOCIAL EQUITY IN CANNABIS PROGRAM I. INTRODUCTION
Washington State Liquor and Cannabis Board (“WSLCB”) entered into a contract with the law firm of Quintairos, Prieto, Wood & Boyer, P.A. (“QPWB”) to review social equity applications from applicants who seek to participate in WSLCB’s Social Equity in Cannabis Program (also referred to as “the Program”). QPWB has agreed to review, score and rank social equity applications that meet the submittal requirements. Upon receipt, QPWB will review the applications and supporting documents, obtain outstanding information if any, verify the information provided, and score the applications based on the WSLCB Social Equity Application Scoring Rubric (“Scoring Rubric”). QPWB will also prepare the forms and resources that are needed to review the social equity applications and communicate with the applicants regarding their applications. QPWB will provide a list to the WSLCB of those applicants who qualify to participate in the Program, those applicants who do not qualify, and a final list of applicants in the order they qualify by jurisdiction.

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3 WSLCB will host workshops for prospective applicants to better understand the social equity licensing process and eligibility requirements. QPWB has commenced its services by preparing workshop content to be provided to and/or made available for prospective applicants. Per our discussions with WSLCB representatives on October 21st, the purpose of this memorandum is to specify the workshop content that we propose is provided or made available to prospective applicants who seek to apply to participate in the Program. It should be noted that the information herein is presented in slightly modified language as it appears in the applicable rules, laws and regulations of the State of Washington and/or on the webpages of the agency. Upon review and confirmation of the proposed workshop content by WSLCB, we will redraft and reformat the content for prospective applicants, so that it is easier to read and comprehend.

This memorandum includes the following exhibit documents:
• Exhibit A – Proposed Workshop Content for WSLCB Social Equity in Cannabis Program (with citations)
• Exhibit B – WSLCB Social Equity in Cannabis Retail Application • Exhibit C – WSLCB Social Equity in Cannabis Retail Application PowerPoint II. PURPOSE
The WSLCB was formed in 1933 by the Steele Act.
1 The mission of the WSLCB is to promote safety by
consistent and fair administration of liquor and cannabis laws through education, voluntary compliance, responsible sales and preventing the misuse of alcohol, cannabis and tobacco.2 In 2011, the citizens of Washington state privatized the sale of spirits and in 2012, Initiative 502 was passed which legalized recreational marijuana sales and mandated WSLCB to oversee the recreational market. Id.

The Washington state legislature found that additional efforts are necessary to reduce barriers to entry to the cannabis industry for individuals and communities most adversely impacted by the enforcement of cannabis-related laws.3In the interest of establishing a cannabis industry that is equitable and accessible to those most adversely impacted by the enforcement of drug-related laws, including cannabis-related laws, the legislature determined that a Social Equity Program should be implemented.

Id.

The legislature found that individuals who have been arrested or incarcerated due to drug laws, and those who have resided in areas of high poverty, suffer from long-lasting adverse consequences, including impacts to employment, business ownership, housing, health, and long-term financial wellbeing. Id. The legislature also determined that family members, especially children, and communities of those who have been arrested or incarcerated due to drug laws, suffer from emotional, psychological, and financial harms because of such arrests and incarceration. Id. The legislature further found that individuals in disproportionately impacted areas (also referred to as “DIA”) suffered the harms of 1 Wash. Rev. Code §§ 66.08.012, .030 (2010).
2 Washington State Liquor and Cannabis Board RFP Re: Reference # K1582. 3 RCW 69.50.335. See also Engrossed Second Substitute House Bill (E2SHB) 2870, Chapter 236, Laws of 2020 (codified as RCW 69.50.335 and RCW 69.50.336).
https://app.leg.wa.gov/RCW/default.aspx?cite=69.50.335&pdf=true https://lawfilesext.leg.wa.gov/biennium/2019-20/Pdf/Bills/Session%20Laws/House/2870-S2.SL.pdf.

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4 enforcement of cannabis-related laws. Id. As a result, those individuals who reside primarily in diverse communities face greater difficulties accessing traditional banking systems and capital for establishing and developing successful businesses. Id.

The legislature therefore found that in the interest of remedying harms resulting from the enforcement of cannabis-related laws in disproportionately impacted areas, a Social Equity Program should be created to facilitate an equitable cannabis industry. Id. Such a program will promote business ownership among individuals who have resided in areas of high poverty and high enforcement of cannabis-related laws. Id. The Social Equity Program will offer financial assistance, technical support and license application benefits to individuals most directly and adversely impacted by the enforcement of cannabis related laws who are interested in starting cannabis business enterprises. Id.

The Social Equity in Cannabis Program was created to issue cannabis retail licenses that have been subject to forfeiture, revocation or cancellation by the Board, or cannabis retailer licenses that were not previously issued by the Board but could have been issued without exceeding the limit on the statewide number of cannabis retailer licenses established before January 1, 2020 by the Board that may be issued or reissued to social equity applicants. Id. Additionally, the Social Equity in Cannabis Task Force (SECTF) was created to provide recommendations to the WSLCB about establishing the Social Equity Program.

Id.

Since the legalization of cannabis in 2012, some jurisdictions have passed moratoria, bans, restrictive zoning laws, reduced allocations and placed other prohibitions on the retail sale of cannabis.4In some areas, these ordinances have prevented cannabis retail licensees from opening. Id. Washington state law requires all cannabis licensees to have a qualifying location, security requirements, report sales and maintain insurance whether they are able to open or not. Id. To reduce the costs of maintaining license requirements, WSLCB has allowed retail cannabis licensees who are legally prohibited from opening anywhere within their allotted jurisdiction to apply for a Title Certificate. Id. Title certificate holders are not required to maintain all license requirements. Id. Title certificate holders may also apply to participate in the WSLCB Social Equity in Cannabis Program. Id.

III. CANNABIS LICENSE REQUIREMENTS
A. SOCIAL EQUITY APPLICANT REQUIREMENTS
To be considered to participate in the WSLCB Social Equity in Cannabis Program, the following requirements must be met by each applicant:
• At least a 51% majority or controlling interest in the applicant must be held by a person or persons who has or have resided in Washington state for six months prior to the application date and meets at least two of the following three qualifications:
✓ Qualification 1: The social equity applicant or applicants have lived in a disproportionately impacted area in Washington state for a minimum of five years between 1980 and 2010; or
4 Liquor and Cannabis Board Interim Policy BIP-04-2018. https://lcb.wa.gov/sites/default/files/publications/board/2018_Board_Agendas/04%2018%2018%20HANDOUTS.p df.

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5 ✓ Qualification 2: The social equity applicant or a family member of the applicant has been arrested or convicted of a cannabis offense; or ✓ Qualification 3: The social equity applicant's household income in the year prior to submitting the application was less than the median household income within the state of Washington as calculated by the United States Census Bureau.5
B. ADDITIONAL REQUIREMENTS
To be considered to participate in the WSLCB Social Equity in Cannabis Program, the following requirements must be met by each applicant, in addition to the above stated requirements:
• Applicants must be at least 21 years of age. Id.
• Applicants must submit a Personal Criminal History form and have their fingerprints taken. Id.
• An individual or married couple may not be a “true party of interest” in more than five retail cannabis licenses. Id. True party of interest typically refers to individuals that have ownership in a cannabis business, receive profit from the business and/or exercise control of the business. Id.
• An individual or married couple may not be a “true party of interest” in both, a cannabis retail license and a cannabis producer or processor license. Id.

C. APPLICATION PROCESS

1. Application Submittal
To be considered to participate in the WSLCB Social Equity in Cannabis Program, each applicant must adhere to the application submittal requirements:
• WSLCB will open the application window for an initial period of 30 calendar days. WSLCB may reopen the application window at its sole discretion. Id. • Social equity application must be submitted electronically through the Department of Revenue's business licensing online application system within the 30-day application window. Id.
• Social equity applicant, whether applying as a person, persons or entity, may apply for a cannabis license only once during each window. Id.
• Social equity title certificate holder may apply for a social equity license and an application to reinstate their existing license through the Program. Id. 5 Proposed Rule WAC 314-55-570.
https://lcb.wa.gov/sites/default/files/publications/rules/2021%20Proposed%20Rules/WSR_22-16-119.pdf.

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6 • When the application window is closed, the social equity contractor will evaluate and prioritize all applications received within the 30-day application window. Id.

2. Application Requirements
To be considered to participate in the WSLCB Social Equity in Cannabis Program, each applicant must include certain information and documents in their application:
• Social equity applicants must select one county where they would like to operate their business. Id.
• Social equity applicants must submit documentation verifying that they meet each of the eligibility requirements. Documentation that is either required and/or deemed acceptable is specified in the application Document Checklist. Id. • If additional materials are needed, the social equity applicant will receive a letter electronically from the social equity contractor requesting the applicant to submit additional application materials directly to the social equity contractor. Id. • Social equity applicant must submit complete and accurate additional application documents directly to the social equity contractor within 15 business days of the date of the letter. Id. It is the responsibility of the social equity applicant to comply with the application requirements and ensure that their application is complete, accurate, and successfully submitted to the social equity contractor in a timely manner. Id. • Social equity contractor will review the application materials to determine if the applicant meets the social equity eligibility requirements. Id. If the applicant meets the social equity eligibility requirements, their participation in the Program will depend on their application score and ranking. Id.
• After the social equity contractor determines that the requirements have been met, the social equity contractor will score social equity applications using the WSLCB Scoring Rubric to prioritize the applicants. Id.
• Social equity contractor will provide WSLCB with a list of eligible and scored social equity applicants. Id.
• Social equity contractor and its employees are prohibited from benefitting from any licenses that are granted. Id.

3. Social Equity Application
a. Application Form Document
Application questions are intended to request information from the social equity applicant that will be evaluated by the social equity contractor to determine whether the applicant meets the social equity requirements. Such questions may include, but not be limited to:

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7 • Does the social equity applicant have a person or persons who: a) hold at least a 51% majority or controlling interest in the applicant; b) has or have resided in Washington state for six months prior to the application date; and c) meets at least two of the following three qualifications:
✓ Qualification 1: The social equity applicant or applicants have lived in a disproportionately impacted area in Washington state for a minimum of five years between 1980 and 2010; or
✓ Qualification 2: The social equity applicant or a family member of the applicant has been arrested or convicted of a cannabis offense; or ✓ Qualification 3: The social equity applicant's household income in the year prior to submitting the application was less than the median household income within the state of Washington as calculated by the United States Census Bureau. Id.
• How long has the social equity applicant lived in a DIA? • Has the social equity applicant been arrested of a drug offense other than cannabis? • Has a social equity applicant’s family member been arrested for drug offense other than cannabis?
• If the social equity applicant was convicted of a cannabis offense, what type of sentence did the social equity applicant receive?
• Did the social equity applicant’s family member’s incarceration keep them from getting employment?
• Did the social equity applicant lose their home or ability to purchase a home because of their convictions or arrests?
• Did the social equity applicant own or operate a medical cannabis dispensary or collective garden, licensed as a business, prior to July 1, 2016? • Did the social equity applicant own and operate a medical cannabis dispensary or collective garden licensed as a business in a DIA?
b. Document Checklist
The Document Checklist is a list of the supporting documentation which must be submitted by the social equity applicant that will be evaluated by the social equity contractor to verify information provided in the application and to determine whether the applicant meets the social equity requirements.6 Required or acceptable documents may include, but not be limited to:
✓ School records or student identification
✓ Leases or rental agreements
6 Washington State Liquor and Cannabis Board RFP Re: Reference # K1582. See also: Proposed Rule WAC 314-55- 570. https://lcb.wa.gov/sites/default/files/publications/rules/2021%20Proposed%20Rules/WSR_22-16-119.pdf.

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8 ✓ Utility bills
✓ Mortgage statements
✓ Statements from individuals who can verify the applicant’s address history ✓ Property tax information
✓ Loan documents
✓ Bank records
✓ Tax returns that indicate the applicant's address(es) or a signed declaration that includes the applicant's address(es) indicating that the applicant resided in a DIA ✓ Applicant's arrest or conviction records or family member's arrest or conviction records
✓ Affirmation of the familial relationship signed by the applicant and the family member
✓ Tax returns of applicant demonstrating their income for the prior year ✓ Social Equity Plan
✓ Other documentation that verifies eligibility
These documents verify information provided in the application of social equity applicants. Id.

Specifically, they may provide proof of time spent in a disproportionately impacted area, arrest and conviction information, household income, and cannabis business experience as specified below: Id. • Proof of time spent in a disproportionately Impacted area may include:
o Leases, rental agreements, or mortgages
o Utility bills
o Statements from a landlord, relatives, roommates, or other sources who can verify the applicant’s address history
o Property tax information
• Proof of arrest information may include:
o Criminal history background reports
o Arrest reports
o Other court documents related to the conviction or vacated sentences • Proof of household Income may include:
o Copies of their most recent tax return
o IRS tax form W-2s
o Affidavits from unemployed applicants
o Student identification or confirmation of secondary education status • Proof of conviction information may include:
o Criminal history background reports
o Sentencing reports
o Probation documents
o Other court documents related to the conviction or vacated sentences • Proof of previous cannabis business experience may include:

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9 o Business license
o Business plan that identifies the member in the charter o Documentation from the local jurisdiction
o IRS tax form W-2
The documents specified above are recommended by WSLCB to prove eligibility to participate in the Social Equity in Cannabis Program. This is not an exhaustive list of all documents that may be submitted by social equity applicants. Pursuant to our legal research, we have identified additional documents which are included in the Document Checklist in the social equity application. All of the specified documents in the Document Checklist are not required to be submitted by every applicant. Applicants are advised to, submit each applicable document, as well as any other supporting documentation that may verify their eligibility. It is important that applications are complete with each question answered and that the application is submitted with the required information as specified in the Document Checklist. Incomplete applications will not be scored for eligibility to participate in the Program.

Each applicant is also required to submit a social equity plan. Id. The social equity plan should: explain how issuing a cannabis license to the social equity applicant will meet social equity goals as described in the social equity in cannabis statute; describe the applicant’s personal family history with the criminal justice system; and detail partnerships or assistance to organizations or residents with connections or contributions to populations with history of high rates of enforcement of cannabis prohibition. Id.

D. Scoring and Ranking of Applications

1. WSLCB Scoring Rubric
Social Equity Application Scoring Rubric
Category Eligibility Requirements Point Scale

1. Lived in a disproportionately impacted area (DIA) 40 1a. How long have you lived in a DIA?
5y – 10y = 10 Points
10+ years = 20 Points
40 2. Convicted of a drug offense? (Self) 10
2a. Convicted of a cannabis offense? (Self) 40

3. Convicted of a drug offense? (Family) 5
3a. Convicted of a cannabis offense? (Family) 5

4. If you were convicted of a cannabis offense, what type of sentence did you receive?
Fine = 10 Points
Served probation = 20 Points
Confined to home = 40 Points
Served time in jail or prison = 80 Points
80

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10 5. Did your family member’s incarceration keep you from getting employment?
5 6. Did you lose your home or ability to purchase a home as a result of your convictions or arrests?
5 7. Is your household income less than the median household income within the state of Washington as calculated by the United States Census Bureau?
40 8. Did you own or operate a medical cannabis dispensary or collective garden, licensed as a business, prior to July 1, 2016 (10 Points)?
or
Did you own and operate a medical cannabis dispensary or collective garden licensed as a business in a DIA (30 Points)? 10 Or
30 in DIA

9. Have you held a 51 percent majority/controlling interest of a state cannabis (marijuana) retailer license?
No = 10 Points
Yes = 0 Points
10 Total Points 310 points

2. Eligible and Scored Applicants
The social equity contractor will provide the WSLCB with a list of eligible and scored social equity applicants. Id.

3. Board Review
Social equity applicants that are scored the highest by the social equity contractor within the county selected by the social equity applicant will be processed by the WSLCB. In the event of a tie, the WSLCB will use a double blind lottery conducted by an independent third party to identify the application(s) that will be processed. Id.

4. Preliminary Letter of Approval
After the social equity applications that will be processed are identified, eligible social equity applicants will be issued a preliminary letter of approval. Id.

E. Additional Provisions

1. Time Restrictions
• A cannabis retailer's license is subject to forfeiture. Id. The WSCLB will adopt rules to establish a license forfeiture process for a licensed cannabis retailer that is not fully

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11 operational and open to the public within a specified time period from the date of license issuance, as established by the board, subject to the following restrictions:
o No cannabis retailer's license may be subject to forfeiture within the first nine months of license issuance; and
o WSLCB must require license forfeiture on or before twenty-four calendar months of license issuance if a cannabis retailer is not fully operational and open to the public, unless the board determines that circumstances out of the licensee's control are preventing the licensee from becoming fully operational and that, in the board's discretion, the circumstances warrant extending the forfeiture period beyond twenty-four calendar months. Id. • There are no time restrictions for social equity applicants to select and secure a location.

Id.

2. Ownership Changes
Social equity applicants may not make ownership changes after the application has been reviewed, scored and prioritized by the social equity contractor. Id.

3. Application Restrictions
Social equity applicants may apply for a social equity license only one time during an application window. Id. If an applicant applies more than once during an application window, only the first application that was submitted by the applicant will be accepted for review by the social equity contractor. Id.

4. Application Withdrawal
The WSLCB will withdraw a social equity application in the following circumstances:
(a) Social equity program application and/or the supporting documentation are determined to be incomplete or incorrect by the social equity contractor; (b) Social equity program application and/or the supporting documentation are not timely received by the social equity contractor; or
(c) Social equity applicant(s) requests withdrawal of the social equity program application at any time in the application process. Id. The social equity applicant(s) must request withdrawal in writing to the WSLCB, with a copy to the social equity contractor. Id. The voluntary withdrawal of a social equity application does not give the applicant a right to an administrative hearing. Id. At an administrative hearing, the parties must provide facts, evidence and arguments in support of a particular resolution to an administrative law judge. Id.

5. License Mobility
Social equity licenses that are currently designated to specific cities may be located anywhere within the county in which the city is located. Id. The license may not be transferred outside of that county. Id.

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12 6. Cannabis Business License Approval
Qualifying to participate in the Social Equity in Cannabis Program will not guarantee cannabis business license approval. Id. As previously indicated, if the social equity applicant meets all of the social equity eligibility requirements, their participation in the Program will depend on their application score and ranking by the social equity contractor. Id.

7. License Transfer and Assumption
Social equity licenses may not be transferred or assumed within the first year of the license being issued.

Licenses may only be transferred to or assumed by individuals or groups of individuals who meet the definition of a social equity applicant for a period of five years from the approval date of the initial license. Id.

8. Social Equity Title Certificate Holders
Social equity title certificate holders that meet the requirements of a social equity program applicant as determined by the social equity contractor may reinstate their retail cannabis license anywhere within the county that they hold their title certificate. Id.

IV. Conduct of Parties Involved in Application Process
A. Communications with Social Equity Contractor
• It is the responsibility of the social equity applicant to: 1) comply with all of the application requirements; and 2) ensure that their application is complete, accurate, and successfully submitted to the social equity contractor for review in a timely manner. • If additional information and/or documents are required to be submitted by the social equity applicant after application submittal, the applicant will receive a notification electronically from the social equity contractor requesting the applicant to submit specific information and/or documents to the social equity contractor. • If the social equity applicant receives a request from the social equity contractor for additional information and/or documents, the applicant must timely submit the requested information and/or documents within 15 business days of the date of the notification. Id.
• Social equity applicant must submit questions to the social equity contractor via email to: [email protected]. Responses will be provided by the social equity contractor via email within two business days.
• Do not attempt to contact the social equity contractor by telephone unless you are asked to return a call from the social equity contractor. If you are asked to return a telephone call, please do so during normal business hours Monday through Friday, excluding holidays. You may respond to email requests whenever it is most convenient for you.

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13 B. Professionalism, Fairness and Integrity
The information provided by the WSLCB and its social equity contractor to participants during the Social Equity in Cannabis Program workshops is intended as a guidance reference to help educate and assist prospective social equity applicants who seek to participate in the Program. With this goal in mind, it is the expectation of WSLCB that all parties involved in the social equity application process, including applicants, the social equity contractor and State employees, adhere to high professional and business standards and right conduct at all times by performing their responsibilities and conducting business with professionalism, fairness and integrity, consistent with the Washington State’s Ethics in Public Service law or rules (“State’s ethics law”).
7 The State’s ethics law provides, in part, that:
• The head of an agency, upon finding that any former state officer or state employee of such agency or any other person (i.e., social equity applicant, social equity contractor) has violated any provision of Washington State’s Ethics in Public Service law or rules may, in addition to any other powers the head of such agency may have, bar or impose reasonable conditions upon:
o The appearance before such agency of such former state officer or state employee or other person; and
o The conduct of, or negotiation or competition for, business with such agency by such former state officer or state employee or other person, for such period of time as may reasonably be necessary or appropriate.8
• A violation of the Washington State’s Ethics in Public Service law or rules is grounds for disciplinary action.

C. Conflicts of Interest
It is the expectation of WSLCB that no State officer or State employee be beneficially interested, directly or indirectly, with the Social Equity in Cannabis Program. The applicable State laws governing conflicts of interest require, in part, that:
• No State officer or State employee be beneficially interested, directly or indirectly, in a contract, sale, lease, purchase, or grant that may be made by, through, or is under the supervision of the officer or employee, in whole or in part, or accept, directly or indirectly, any compensation, gratuity, or reward from any prospective applicant, applicant, licensee or other person beneficially interested in the contract, sale, lease, purchase, or grant.9
• No State officer or State employee may participate in a transaction involving the State in his or her official capacity with a person of which the officer or employee is an officer, agent, employee, or member, or in which the officer or employee owns a beneficial interest. Id. There are certain exceptions that apply to an officer or employee of an 7 Chapter 42.52 RCW.
8 RCW 42.52.100. https://app.leg.wa.gov/RCW/default.aspx?cite=42.52.100&pdf=true. 9 RCW 42.52.030. chromeextension://efaidnbmnnnibpcajpcglclefindmkaj/https://app.leg.wa.gov/RCW/default.aspx?cite=42.52.030&pdf=tr ue.

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14 institution of higher education or the Spokane intercollegiate research and technology institute. Id.
• No State officer or State employee may have an interest, financial or otherwise, direct or indirect, or engage in a business or transaction or professional activity, or incur an obligation of any nature, that is in conflict with the proper discharge of the State officer's or State employee's official duties. Id.

V. Frequently Asked Questions
WSLCB and the social equity contractor understands that prospective social equity applicants will seek additional information and guidance regarding the Social Equity in Cannabis Program. Below are some frequently asked questions and responses by WSLCB to the questions:

Q: How do I apply to be a social equity applicant?10
A: WSLCB is not yet accepting applications. Check out the WSLCB webpage on things that prospective applicants can do now to prepare to apply. Id.

Q: What is the timeline for social equity applications? Id.

A: Applications must be submitted within a designated 30-day window. The application window will be announced at a later date. Id. Applicants must meet the qualifications and submit their application during this time period in order to be considered for a license. Id.

Q: What is a social equity license? Id.

A: The WSLCB has held in reserve approximately 40 licenses that were forfeited, cancelled, or revoked or were licenses that were never issued. Id. Applicants who meet the eligibility qualifications and score the highest on the Scoring Rubric will have the opportunity to complete the licensing process. Id. The criteria are currently in the draft proposed rules. Id.

Q: Who is eligible to be a social equity applicant? Id.

A: Under the proposed rules, applicants must meet two of the three following qualifications to be eligible for a social equity cannabis license:
✓ Applicant(s) must have lived in a disproportionately impacted area in Washington state for a minimum of five years between 1980 and 2010; or ✓ Applicant(s) or a family member of the applicant has been arrested or convicted of a cannabis offense; or
✓ Applicant(s)’ household income in the year prior to submitting the application was less than the median household income within the state of Washington as calculated by the U.S. Census Bureau. Id.

Q: What is the Technical Assistance Program? Id.
10 Washington State Liquor and Cannabis Board Website (Social Equity Frequently Asked Questions):
https://lcb.wa.gov/se/se-cannabis-faq.

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15 A: In collaboration with the Washington State Department of Commerce and MakeGreenGo, the Technical Assistance Program is a free resource available to anyone interested. Id. Potential applicants may sign up and register for a free account and view 18 hours of video content, download worksheets, and learn more about basic business concepts with examples specific to the cannabis industry. Id. There are a number of other organizations and agencies in Washington state that also provide technical assistance to small and diverse businesses. Id.

Q: I am a certificate title holder that meets the criteria for a social equity license. Id. Am I eligible to apply under these rules? Id.

A: Yes - current title certificate holders may apply for a social equity license. Id. In addition, title certificate holders who meet the qualifications for a social equity license may move their license anywhere within the county where their title certificate is located. Id. To qualify, the social equity title certificate holder must apply to reinstate their existing license through the Social Equity Program. Id. An application to reinstate the license of a social equity title certificate holder will not be considered a new social equity license application. Id. A separate application must be submitted for a title certificate holder to qualify for a new social equity license. Id.

Q: How were the qualifications for social equity applicants determined? Id.

A: The Social Equity in Cannabis Task Force developed preliminary guidelines for social equity applicants. Id. The WSLCB offered opportunities for stakeholders to review the drafts and offer feedback throughout the rulemaking process. Id. Proposed draft rules including all definitions and application criteria, were presented to the Board on August 3, 2022. Id.

Q: Who decides whether a social equity application meets the criteria for receiving a license? Id.

A: A Scoring Rubric was developed and approved by the Board, outlined in proposed new section WAC 314-55-570. Id. The law firm of Quintairos, Prieto, Wood & Boyer, P.A. (QPWB) will serve as a third party contractor (i.e. social equity contractor), which will review, validate applicants’ qualifications, and score all of the applications submitted. Id.

Q: Why did the WSLCB hire a third-party contractor to review and score social equity applications? Id.

A: The Social Equity in Cannabis Task Force and the community recommended that the WSLCB hire a third-party contractor to review and score social equity applications. Id. The selected third-party contractor, law firm Quintairos, Prieto, Wood & Boyer, P.A. (QPWB), is the largest minority and woman-owned law firm in the country. Id. Their government procurement, contracts and social equity team have a proven track record working with businesses and government agencies to use federal, state and local guidelines to determine eligibility for Disadvantaged and Minority Business Enterprises (D/MBEs) and creating opportunities for small and minority businesses to access government contracts. Id.

Q: Do I have to be a racial minority to get a social equity license? Id.

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16 A: No, individuals of any race are welcome to apply for a social equity license, if they meet the requirements for social equity applicants. Id. Individuals do not need to be a racial minority to apply for or receive a social equity license. Id.

Q: Why are arrests and convictions qualifiers for a social equity license? Id.

A: The Washington State legislature recognized that cannabis prohibition laws were disproportionately enforced for decades and that the cumulative harms from this enforcement remain even today. Id. The WSLCB is committed to supporting individuals and communities that may have been disproportionately convicted of crimes for a legal substance. Id.

Q: What is the process for receiving a social equity license? Id.

A: After submitting a social equity application through the Department of Revenue’s business licensing online application system, third party law firm Quintairos, Prieto, Wood & Boyer, P.A. (QPWB) will score all applications submitted during the 30-day window. Id. QPWB will forward the applications to the WSLCB and the highest scoring applications will receive a preliminary letter of approval. Id. In the case of a tie in a county, the WSLCB will hold a doubleblind lottery to select the final applicants to move forward with the WSLCB licensing process. Id.

After the final applicants are identified, they will work with a WSLCB Licensing Specialist to complete the licensing process. Id.

Q: Can an applicant submit multiple applications? Id.

A: No, applicants may only apply for a social equity license once. Id.

Q: How long does it take to get a license once an application is submitted? Id.

A: After an application is submitted, it will be reviewed by third party law firm of Quintairos, Prieto, Wood & Boyer, P.A. (QPWB). Id. If additional materials are needed, the applicant will be notified by QPWB. Id. Upon notification, the applicant must provide the requested materials within 15 business days. Id. After the WSLCB receives the application scores from QPWB, the agency will work to award licenses to the top scoring applicants and notify all applicants of their application status. Id.

Q: How can interested parties provide input on WSLCB’s plan for issuing social equity licenses? Id.

A: While the opportunity for providing feedback on the current set of draft social equity rules closed at midnight on September 14, 2022, the rulemaking team will continue to accept suggestions for future rules via:

Email: [email protected];
Fax: (360) 664-9689; or
Mail: Rules Coordinator
Liquor and Cannabis Board
P.O. Box 43090
Olympia, WA 98504-3080

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17 Q: What do I need to create a social equity plan? Id.

A: The WSLCB will provide a structure for creating a social equity plan. Id. Stay tuned for more information and training on this topic. Id.

Q: How do I become a mentor for social equity applicants? Id.

A: The Washington State Department of Commerce has submitted a Request for Proposal (RFP) for the mentorship program for social equity applicants. Id. Keep an eye on their website for more information. Id.

Q: Are these licenses available throughout the state of Washington? Id.

A: No - there are specific counties where social equity licenses are available. Id.

Q: Will an applicant be able to make changes to their business ownership structure after they submit an application? Id.

A: No – an applicant may not make ownership changes to an application after the application has been reviewed, scored, and prioritized by the third-party or social equity contractor. Id.

VI. Best Practices: Application Guidance Tips

1. Carefully review the applicant eligibility requirements in the Washington Administrative Code before you commence the application process. License eligibility of each applicant will be determined pursuant to the eligibility requirements in the Washington Administrative Code.11 (https://lcb.wa.gov/se/social-equity-applicants)

2. Do not select more than one preferred jurisdiction. Each applicant is permitted to select only one preferred jurisdiction.12

3. Submit a complete application with payment pursuant to the specified instructions with all of the required information in the Document Checklist within the 30-day application window. Id. Incomplete applications will not be accepted and scored by the social equity contractor for eligibility to participate in the Social Equity in Cannabis Program. Id.

4. Do not leave any blank spaces in your application. Respond to each question in the application. If a question does not apply to you, specify “N/A” and briefly indicate why it does not apply to avoid unnecessary follow-up for your response by the social equity contractor.

5. Submit questions via email regarding the application process to:
[email protected]. Responses will be provided via email within two business 11 https://lcb.wa.gov/se/social-equity-applicants.
12 Proposed Rule WAC 314-55-570.
https://lcb.wa.gov/sites/default/files/publications/rules/2021%20Proposed%20Rules/WSR_22-16-119.pdf.

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18 days. Do not attempt to contact the social equity contractor by telephone unless you are asked to return a call from the social equity contractor.

6. Make sure that all information in your application and supporting documents is complete, accurate, current and successfully submitted to the social equity contractor.

Information provided by applicants will be verified for accuracy.

7. Each completed application must be signed by an authorized representative of the applicant. The signature is the entity’s certification that it has conducted reasonable due diligence in collecting and providing all material facts and related information in connection with each question in the application.

8. Penalties may be assessed by WSLCB against applicants who knowingly provide false or misleading information in their application.

9. Respond to requests for additional information and/or documents in a timely manner and no later than within 15 business days of the date of the letter. Late responses may result in a recommendation to deny a social equity license to the applicant.

10. Allow approximately three months for your application to be processed after submitting a complete application with all of the required supporting documentation to the social equity contractor. Incomplete applications will not be scored and will result in a recommendation to deny a social equity license to the applicant. Id.

11. Applicants who submit complete applications and meet the eligibility requirements are not guaranteed to be granted a social equity license. Applicants who meet the eligibility requirements will be scored and ranked by the social equity contractor by using the WSLCB Scoring Rubric.

12. Applicants will be notified, in writing, of the final decision of WSLCB to grant or deny a social equity license. Id.

13. An applicant or licensee may request an administrative hearing to contest the withdrawal or denial of a social equity license.

14. Do not submit multiple applications. Each applicant (i.e., person and entity) is permitted to submit only one application for a social equity license. Id. Applicants will be required to withdraw applications that are submitted after their first application which will be the only application reviewed. Id.

15. Visit the WSLCB website for additional information regarding the Social Equity in Cannabis Program. (https://lcb.wa.gov/)
VII. Social Equity Application Assistance
There are many not-for-profit organizations and agencies in the state of Washington that provide technical assistance services to small and diverse businesses. Social equity applicants that seek technical assistance to organize, develop and/or to expand their business should consider the services provided

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19 by these organizations and agencies, some of which are listed below and on the agency’s webpage.13 Social equity applicants are not required or expected to obtain services or information from any of these organizations and agencies in connection with the Social Equity in Cannabis Program. The receipt of services from these organizations and agencies by social equity applicants does not guarantee that they will be allowed to participate in the Social Equity in Cannabis Program. WSLCB does not endorse any of these organizations and/or agencies nor does it assume any responsibility for the services that they provide.
• MakeGreenGo
o The WSLCB has partnered with the Washington State Department of Commerce and MakeGreenGo, an organization that provides business development services for cannabis social equity applicants.
o MakeGreenGo has assisted in implementing social equity in cannabis programs across multiple states and jurisdictions in collaboration with government agencies. Social equity applicants can sign up for free to participate in their educational program modules. These modules provide an introduction to business concepts such as financing, marketing, taxes and business planning. All module presenters and hosts are experts in the industry and offer examples specific to cannabis business owners. Each module has downloadable content for applicants to reference and use in working to develop their business plans. o Social equity applicants can provide their name and email address to sign up for a free account and access the content.
• Department of Commerce
o The Department of Commerce is seeking a roster of mentors and facilitators to support social equity licensees. Mentors will initially provide support services to any early-stage entrepreneurs interested in starting cannabis business enterprises, particularly those who have been historically impacted by high poverty and enforcement of cannabis prohibitions. Assistance will also include specialized guidance and support to those seeking social equity licenses.

Washington State Liquor and Cannabis Board Website (Training and Education):
https://lcb.wa.gov/se/education
• Washington State Office of Minority and Women’s Business Enterprise o Social equity applicants may contact OMWBE at (360) 664-9750 or Toll Free (866) 208-1064 to speak with a Technical Assistant. They can also email [email protected] or visit their office any time Monday through Friday from 8:00 am - 5:00 pm. The OMWBE is located at 1110 Capitol Way South, Suite 150 Olympia, WA 98501.

For assistance with the social equity application:
13 https://lcb.wa.gov/, https://omwbe.wa.gov/.

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20 https://omwbe.wa.gov/certification/frequently-asked-questions-faqs-and-factsheets • MBDA Business Center – Tacoma
o The MBDA Business Center is part of a national network of funded centers located in major cities throughout the nation. The Center works with minority business enterprises (MBEs) to generate increased financing and contract opportunities, and to create and retain jobs.
o The program's objective is to provide ongoing, quality assistance to MBEs with rapid growth potential so that they can achieve greater participation in the development of the nation's commerce. The Center provides technical assistance and strategic business consulting to MBEs to generate increased financing and contracting opportunities.
https://www.mbda.gov/business-center/washington-mbda-business-center • American Indian Chamber Education Fund PTAC
o The American Indian Chamber Education Fund PTAC provides technical assistance to Native American owned businesses.
http://aicef-ptac.org/
• U.S. Department of Commerce Minority Business Development Agency (MBDA) o MBDA supports job growth and economic expansion through a network of MBDA business centers, collaboration with federal, state and local government agencies, and strategic partnerships.
https://www.mbda.gov/
• U.S. Small Business Administration (SBA)
o The SBA was created in 1953 to help small business owners and entrepreneurs.

It is the only cabinet-level federal agency fully dedicated to small businesses which provides counseling, capital and contracting expertise. https://www.sba.gov/
• White House Initiative on Educational Excellence for Hispanics o The White House Initiative on Educational Excellence for Hispanics was originally established in 1990 to address the educational disparities faced by the Hispanic community. It is a multi-agency working group within the Department of Education charged with strengthening the nation’s capacity to provide highquality education while increasing opportunities for Hispanic American participation in federal education programs.

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21 https://sites.ed.gov/hispanic-initiative/
• Women Entrepreneurs Inc.
o Women Entrepreneurs of America, Inc. was established in November 2002 to provide support to women business owners.
https://womenentrepreneursinc.com/
• Women's Business Enterprise National Council (WBENC)
o The Women's Business Enterprise National Council (WBENC), founded in 1997, is the largest third-party certifier of businesses owned, controlled, and operated by women in the nation. WBENC partners with 14 Regional Partner Organizations to provide certification to women-owned businesses throughout the country.
https://www.wbenc.org/
• Professional Women in Construction
o Professional Women in Construction (PWC) is a nonprofit organization committed to advancing professional, entrepreneurial, and managerial opportunities for women and other non-traditional populations in construction and related industries.
https://www.pwcusa.org/
• Washington State Small Business Development Centers
o The Washington SBDC promotes economic vitality within Washington communities by providing expert business advising, demand-driven training, and applied research to existing businesses and entrepreneurs. The SBDC is a cooperative effort of Washington State University, other educational institutions, economic development organizations and the U.S. Small Business Administration.
https://wsbdc.org/
• Northwest Indian Applied Research Institute
o The Northwestern Indian Applied Research Institute (“Institute”) expands the services which the college can offer the tribes, enabling Evergreen to assist local tribes to meet their economic, governance and resource goals. The Institute provides additional, real-life learning opportunities for Evergreen students. https://www.evergreen.edu/nativeprograms/northwest-indian-applied-researchinstitute

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22 • AHANA (African-American, Hispanic, Asian and Native Americans) Business Association o AHANA strives to improve the economic status and enhance the quality of life of minority communities through the development of business and employment opportunities.
https://ahana-meba.org/
• Tabor 100
o Tabor 100 is an association of entrepreneurs and business advocates who are committed to economic power, educational excellence and social equity for African-Americans and the community at large.
https://www.tabor100.org/
• National Minority Business Council
o Founded in 1972 , the National Minority Business Council provides business assistance, educational opportunities, seminars, purchasing listings and related services to businesses throughout the tri-state area and across the nation. https://www.nmbc.org/
• National Center for American Indian Enterprise Development o The National Center for American Indian Enterprise Development (NCAIED) is the largest national Indian specific business organization in the nation that provides business and economic development assistance to American Indian tribes and their enterprises.
https://www.ncaied.org/
• Latino Business Association
o The Latin Business Association (LBA), established in 1976, is an active Latin business trade association which represents over 800,000 Latin businesses in California.
https://lbausa.com/
• INROADS
o The mission of INROADS is to develop and place talented underserved youth in business and industry, and prepare them for corporate and community leadership.
https://inroads.org/

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23 • Diversity 2000
o Diversity 2000 has a free database of minority and women business enterprises (M/WBEs) and contacts within Fortune 1000 companies on its website. Persons can register their company as a supplier at no charge. Suppliers' profiles are made available to buyers including Fortune 1000 companies, government agencies, associations and other major purchasers nationwide seeking to do business with M/WBEs.
http://www.div2000.com/
• Count Me In for Women’s Economic Independence
o Count Me In for Women's Economic Independence is an organization that makes small business loans and gives training scholarships to women. https://www.count-me-in.org/
• Asian American Business Development Center
o Asian American Business Development Center was established in New York City in 1994 to promote greater recognition of Asian American businesses' contributions to the general economy. AABDC encourages Asian American businesses to be more actively involved in issues and policies that directly affect them at the federal, state and city levels. AABDC also provides capacity-building assistance to business entities.
https://www.aabdc.com/
• U.S. Dept. of Interior - Information about Tribes, BIA, Resources o Bureau of Indian Affairs (IA) is the oldest bureau of the U.S. Department of the Interior. Established in 1824, IA currently provides services, directly or through contracts, grants, or compacts to approximately 1.9 million American Indians and Alaska Natives.
https://www.bia.gov/
• Ventures - Small Business Services
o Ventures offers several additional resources, including an initial eight-week Business Basics course to help people reach their goals and move their businesses forward. These services include a variety of resources, including access to capital, advanced business training, free small business legal advice and one-to-one coaching.
https://www.venturesnonprofit.org/
• Business Impact NW (BIN)

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24 o Business Impact NW (BIN) is a consortium of non-profit community development organizations. This includes a community development corporation that provides training, counseling, and membership. BIN also includes a certified community development financial institution that provides access to capital and business assistance to small businesses, with special emphasis on low-income, women and minority entrepreneurs and small businesses in distressed and undeserved communities in Washington State. https://businessimpactnw.org/
• Washington State Department of Enterprise Services Surplus Operations o Washington State Department of Enterprise Services Surplus Operations handles used goods ranging from corkscrews to museum exhibits to used radar guns and vehicles. Proceeds from sales pay for the surplus program and result in financial returns to state and local government agencies. https://des.wa.gov/services/surplus/buy-surplus
• Retirement Marketplace
o The Retirement Marketplace is a one-stop, easy-to-use website that helps small business owners and individuals comparison shop for retirement savings plans. https://www.commerce.wa.gov/growing-the-economy/business-services/smallbusiness-retirement-marketplace/ • Pro Bono Washington
o Pro Bono Washington is an online resource administered by the Washington State Bar Association in collaboration with the WSBA Pro Bono and Public Service Committee, Qualified Legal Services Organizations, and others in the pro bono community. The purpose of the Pro Bono portal is to connect legal professionals to pro bono opportunities throughout the state that match their interests, expertise, and availability. Pro Bono Washington partners with more than 80 volunteer legal providers that offer legal services to low and moderate income individuals.
https://www.probonocouncil.org/
• Washington Tribes
o Washington Tribes is a public education initiative sponsored by the Washington Indian Gaming Association to raise awareness about tribal government investments.
https://www.washingtontribes.org/
• WSDOT Office of Equal Opportunity

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25 o The Washington State Department of Transportation (WSDOT) Minority and Women Business Enterprises Support Services (MWBESS) program provides state-funded supportive services and training to minority, women, and other socially and economically disadvantaged businesses that seek to work on WSDOT highway-related construction projects.
https://wsdot.wa.gov/business-wsdot/equal-opportunity-contracting VIII. WSLCB Disclaimer
The information provided by the WSLCB and its social equity contractor to participants during the Social Equity in Cannabis Program workshops is intended as a guidance reference to help educate and assist prospective social equity license applicants who seek to participate in the Program. As previously stated, it is the expectation of WSLCB that all parties involved in the social equity application process perform their responsibilities and conduct business with professionalism, fairness and integrity. With these goals in mind, the workshop information contains information in clear and easy-to-read language on the laws, policies and suggested best practices of WSLCB that govern applications for a social equity license.

This information applies to all social equity applicants and their officers, and employees including without limitation to full-time, part-time, and contractual employees, appointees, including without limitation paid and unpaid appointees, interns, fellows, and volunteers. Applicants are expected to know the policies and guidelines contained in WSLCB laws, rules and policies, as well as any additional and/or new policies and guidelines set by the State of Washington. Please read the Best Practices:

Application Guidance Tips and related information provided by WSLCB carefully, as failure to adhere to these practices could result in a recommendation to deny you or your entity a Social Equity license and possibly related penalties for noncompliance or false statements.

The information provided during the Social Equity in Cannabis Program workshops is intended to promote high professional and business standards and right conduct, as well as, consistency, and standardization, but do not reflect or represent every conceivable issue or question that may arise during the application process. WSLCB reserves the right to change or modify this information at any time at the sole discretion of WSLCB with or without prior notice. Updated versions may be published for future workshops and on the WSLCB’s website from time to time. Workshop content does not, and may not, be interpreted to create any promise, guarantee or rights for any person who attend the workshop and/or any social equity applicant.

WSLCB is committed to advancing diversity, equity and inclusion in the cannabis industry in Washington state via its Social Equity in Cannabis Program. It has an “open-door” policy and encourages all social equity applicants to ask questions if there are any WSLCB laws, regulations, policies or procedures in connection with the Social Equity in Cannabis Program that you do not understand. WSLCB appreciates your interest in its Social Equity in Cannabis Program and encourages you to make every effort to comply with the applicable WSLCB laws, regulations, policies or procedures which govern the program, and take advantage of the available resources if you intend to apply for a social equity license. We hope the information provided during this workshop is useful and helps you to achieve your business goals as a cannabis business enterprise.

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26 IX. Conclusion
WSLCB will host workshops for applicants and prospective applicants to better understand the social equity licensing process and eligibility requirements. On behalf of QPWB, we have prepared this proposed workshop content to be provided to and/or made available for applicants and prospective applicants who seek to apply to participate in the Social Equity in Cannabis Program. Please review it carefully and inform us of any modifications that you would like us to make – including additions and deletions of proposed information. Please be reminded that the information herein is presented in slightly modified language as it appears in the applicable rules, laws and regulations of the State of Washington and/or on the webpages of the agency. Upon receipt of your modifications, QPWB will update, redraft and reformat the content for prospective applicants, so that it is easier to read and comprehend.

Per our communications, this memorandum includes the following exhibit documents:
• Exhibit A – Proposed Workshop Content for WSLB Social Equity in Cannabis Program (with citations)
• Exhibit B – WSLCB Social Equity in Cannabis Retail Application • Exhibit C – WSLCB Social Equity in Cannabis Retail Application PowerPoint We look forward to our meeting with you on November 3rd at 11:00amPT/1:00pmCST to discuss our proposed workshop content for the WSLCBSocial Equity in Cannabis Program. Please do not hesitate to contact us, at your convenience, if we can answer any questions about this document or the attached exhibits and/or if we can be of further assistance prior to our scheduled meeting.

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AN OVERVIEW OF THE WSLCB

SOCIAL EQUITY IN CANNABIS

PROGRAM
NOVEMBER 2022

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Introduction
Washington State Liquor and Cannabis Board (“WSLCB”) entered into a contract with the law firm of Quintairos, Prieto, Wood & Boyer, P.A. (“QPWB”) to be the “social equity contractor” ✓ Review social equity applications from applicants who seek to participate in WSLCB’s Social Equity in Cannabis Program
✓ Review, score and rank applications
✓ Request and review application and supporting documents ✓ Request and review outstanding information
✓ Verify information provided
✓ Provide list to WSCLB of applicants who qualify and who do not qualify ✓ Prepare final list in order they qualify by jurisdiction

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Purpose
Findings of Washington State Legislature
✓ Individuals who have been arrested or incarcerated due to drug laws, and those who have resided in areas of high poverty, suffer from long- lasting adverse consequences, including impacts to employment, business ownership, housing, health, and long-term financial well-being ✓ Family members, especially children, and communities of those who have been arrested or incarcerated due to drug laws, suffer from emotional, psychological, and financial harms because of such arrests and incarceration ✓ Individuals in disproportionately impacted areas (DIA) suffered the harms of enforcement of cannabis-related laws. As a result - those individuals who reside primarily in diverse communities face greater difficulties accessing traditional banking systems and capital for establishing and developing successful businesses ✓ In the interest of remedying harms, a Social Equity Program should be created Social Equity in Cannabis Program was created to issue cannabis retail licenses that have been subject to forfeiture, revocation or cancellation by the WSLCB or cannabis retailer licenses that were not previously issued but could have been issued without exceeding the limit on the statewide number of licenses established before January 1, 2020

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Social Equity Applicant Requirements
To be considered to participate in the Social Equity in Cannabis Program, the following requirements must be met by each applicant:
• At least a 51% majority or controlling interest in the applicant must be held by a person or persons who has or have resided in Washington state for six months prior to the application date and meets at least two of the following three qualifications:
✓ Qualification 1: The social equity applicant or applicants have lived in a disproportionately impacted area in Washington state for a minimum of five years between 1980 and 2010; or ✓ Qualification 2: The social equity applicant or a family member of the applicant has been arrested or convicted of a cannabis offense; or
✓ Qualification 3: The social equity applicant's household income in the year prior to submitting the application was less than the median household income within the state of Washington as calculated by the United States Census Bureau.

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Additional Requirements
To be considered to participate in the Social Equity in Cannabis Program, the following requirements must also be met by each applicant:
✓ Applicants must be at least 21 years of age
✓ Individual or married couple may not be a “true party of interest” in more than five retail cannabis licenses. True party of interest refers to individuals that have ownership in a cannabis business, receive profit from the business and/or exercise control of the business ✓ Individual or married couple may not be a “true party of interest” in both a cannabis retail license and a cannabis producer or processor license
All cannabis retail applicants must meet these additional requirements

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How to Submit your Social Equity Application
To be considered to participate in the Social Equity in Cannabis Program, each applicant must adhere to the application submittal requirements:
• WSLCB will open the application window for an initial period of 30 calendar days • Social equity application must be submitted electronically through the Department of Revenue's business licensing online application system within the 30-day application window • Social equity applicant may apply for a cannabis license only once during each window • When the application window is closed, the social equity contractor will evaluate and prioritize all applications
• If additional information and/or documents are required, the social equity contractor will notify the applicant electronically
• Applicants should send all information/documents directly to the social equity contractor, not WSLCB (Licensing and Regulation Division)

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Application Requirements
To be considered to participate in the Social Equity in Cannabis Program, each applicant must submit the following information and documents in their application to the social equity contractor:
• Select one county where they would like to operate their business • Submit documentation verifying that they meet each of the eligibility requirements. Required documentation is specified in the application document checklist • If additional materials are needed, applicant will receive a letter electronically from the social equity contractor requesting the applicant to submit additional application documents • Applicant must submit complete and accurate additional application materials directly to the social equity contractor within 15 business days of the date of the letter. It is the responsibility of the applicant to comply with the application requirements and ensure that their application is complete, accurate and successfully submitted in a timely manner

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Application Form Document
Application questions are intended to request information from the applicant that will be evaluated by the social equity contractor to determine whether the applicant meets the social equity requirements. Questions may include:
• Does the social equity applicant have a person or persons who: a) hold at least a 51% majority or controlling interest in the applicant; b) has or have resided in Washington state for six months prior to the application date; and c) meets at least two of the following three qualifications:
✓ Qualification 1: social equity applicant or applicants have lived in a disproportionately impacted area (DIA) in Washington state for a minimum of five years between 1980 and 2010; or ✓ Qualification 2: social equity applicant or a family member of the applicant has been arrested or convicted of a cannabis offense; or
✓ Qualification 3: social equity applicant's household income in the year prior to submitting the application was less than the median household income within the state of Washington as calculated by the U.S. Census Bureau.

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Application Form Document (cont’d)
• How long has the social equity applicant lived in a DIA? • Has the social equity applicant been arrested of a drug offense other than cannabis? • Has a social equity applicant’s family member been arrested for drug offense other than cannabis?
• If the social equity applicant was convicted of a cannabis offense, what type of sentence did the social equity applicant receive?

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Application Form Document (cont’d)
• Did the social equity applicant’s family member’s incarceration keep them from getting employment?
• Did the social equity applicant lose their home or ability to purchase a home because of their convictions or arrests?
• Did the social equity applicant own or operate a medical cannabis dispensary or collective garden, licensed as a business, prior to July 1, 2016?
• Did the social equity applicant own and operate a medical cannabis dispensary or collective garden licensed as a business in a DIA?

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Document Checklist
The Document Checklist is a list of the supporting documentation which must be submitted by the applicant that will be evaluated by the social equity contractor to verify information provided in the application and to determine whether the applicant meets the social equity requirements. Required or acceptable documents may include:
✓School records or student identification
✓Leases or rental agreements
✓Utility bills
✓Mortgage statements
✓Statements from individuals who can verify the applicant’s address history ✓Property tax information

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Document Checklist (cont’d)
✓Loan documents
✓Bank records
✓Tax returns that indicate the applicant's address(es) or a signed declaration that includes the applicant's address(es) indicating that the applicant resided in a DIA ✓Applicant's arrest or conviction records or family member's arrest or conviction records ✓Affirmation of the familial relationship signed by the applicant and the family member ✓Tax returns of applicant demonstrating their income for the prior year ✓Other documentation that verifies eligibility

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Scoring and Ranking of Applications
WSLCB Scoring Rubric
Category
Social Equity Application Scoring Rubric
Eligibility Requirements Point Scale

3. Convicted of a drug offense? (Family) 5
3a. Convicted of a cannabis offense? (Family) 5

4. If you were convicted of a cannabis offense, what type ofsentence did you receive? Fine = 10 Points
Served probation = 20 Points
Confined to home = 40 Points
Served time in jail of prison = 80 Points
80 5. Did your family member’s incarceration keep you from getting employment? 5

6. Did you lose your home or ability to purchase a home as a result of your convictions or arrests? 5

7. Is your household income less than the median household income within the state of Washington as calculated by the UnitedStates Census Bureau? 40

8. Did you own or operate a medical cannabis dispensary or collective garden, licensed as a business, prior to July 1, 2016 (10 Points)? or
Did you own and operate a medical cannabis dispensary or collective garden licensed as a business in a DIA (30 Points)? 10 30 in a DIA

9. Have you held or do you currently hold 51 percent majority/controlling interest of a state cannabis (marijuana) retailerlicense? No = 10 Points
Yes = 0 Points
10 Total Points: 310 points

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Next Steps
• Social equity contractor will determine whether the applicant meets the eligibility requirements. If the applicant meets the requirements, their participation in the Program will depend on their application score and ranking. Eligibility does not guarantee participation • After the social equity contractor determines that the requirements have been met, the social equity contractor will score social equity applications using the WSLCB Scoring Rubric to prioritize the applicants • Social equity contractor will provide WSLCB with a list of eligible and scored social equity applicants • Social equity contractor and its employees are prohibited from benefitting from any licenses that are granted
• Applicants that are scored the highest by the social equity contractor within the county elected by the applicant will be processed by the WSLCB. Ties within a county will be decided by a double-blind lottery • After the applications that will be processed are identified, eligible applicants will be issued a preliminary letter of approval

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Communications with the Social Equity Contractor
• Applicant must comply with all of the application requirements; and ensure that their application is complete, accurate, and successfully submitted to the social equity contractor in a timely manner (within 15 days of initial contact from the social equity contractor) • If additional information and/or documents are required to be submitted by the applicant after application submittal, the applicant will receive a notification electronically from the social equity contractor
• If applicant receives a request from the social equity contractor for additional information and/or documents, the applicant must timely submit the requested information and/or documents within 14 business days of the date of the notification • Applicant must submit questions to the social equity contractor via email to:
__________________

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Frequently Asked Questions
Q: Who will review and score my social equity application? A: The social equity contractor, Quintairos, Prieto, Wood & Boyer (QPWB) will review, validate and score all of the applications submitted. The responsible QPWB attorneys have a law practice that focuses on developing and implementing supplier diversity and related programs and initiatives that promote minority and women businesses, as well as diverse communities.

Q: How can I obtain the application to complete?
A: Applicants should go to the following website _________ to access and complete the online application and to upload their supporting documents.

Q: May I submit multiple applications, as long as I have a majority ownership interest in only one cannabis business enterprise that applies?
A. No. You may not submit multiple applications under any circumstances. Each applicant is permitted to submit only one application for a social equity license.

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Frequently Asked Questions (cont’d)
Q: Where can I go if I need assistance in completing my application? A: Applicants could reach out to any technical assistance organization or agency in Washington state. We have identified a number of technical assistance organizations/agencies that may be able to provide you application assistance. The names and webpages of these organizations and agencies are listed on the WSLCB website at ______________.

Q: May I submit a hard copy of the application and supporting documents if I don’t have access to a computer?
A: No. If you don’t have access to a computer, you should make arrangements to submit your application and upload your supporting documents at a technical assistance agency.

Q: May I select more than one preferred jurisdiction?
A: No. Each applicant is permitted to select only one preferred jurisdiction.

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Frequently Asked Questions (cont’d)
Q: How do I know which documents I should submit with my application? A: The application includes detailed instructions and a document checklist which provides applicants guidance about the documents to submit to verify the information in their application. Applicants may submit questions about the instructions and the document checklist to: ____________.

Q: Who will have access to my application and supporting documents? A: The confidentiality of your application and supporting documents are very important to WSLCB and the social equity contractor. Only persons who are affiliated with the social equity contractor that are directly involved in the evaluation, verification, scoring and/or ranking of your application will have access to your application and supporting documents.

Q: Will I be informed of any missing documents and allowed to submit them? If yes, how will I be informed? A: Yes. The social equity contractor will inform you via an electronic notification if your application is missing any information and/or documents. You must respond to requests for additional information/documents in a timely manner and no later than 15 business days.

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Frequently Asked Questions (cont’d)
Q: May I or my advocate meet with or call the social equity contractor to discuss my application? A: No. The social equity contractor is not meeting, in person or telephonically, with applicants or their advocates, in order to maintain the integrity of the application process and prevent any applicant from obtaining a competitive advantage. However, applicants may submit questions about the application process to: ____________. Responses will be provided via email by the social equity contractor within two (2) business days.

Q: Who developed the Scoring Rubric?
A: The Scoring Rubric was developed and approved by the WSLCB.

Q: Does the social equity contractor have to use or follow the WSLCB Scoring Rubric to evaluate and score all applications?
A: Yes. The social equity contractor must use the WSLCB Scoring Rubric to evaluate and score all applications. It cannot change or modify the Scoring Rubric.

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Frequently Asked Questions (cont’d)
Q: How long will it take the social equity contractor to complete their evaluation of each application? A: The evaluation time will vary depending on whether a complete application is submitted. The social equity contractor is allocating three (3) months for an application to be processed after the submittal of a complete application with all of the required supporting documentation.

Q: How will the social equity contractor ensure that the evaluation process is fair to all applicants? A: The social equity contractor will use the WSLCB Scoring Rubric to evaluate and score all applications. It will also seek to verify the information in each application by reviewing the supporting documentation submitted and available legal research platforms and tools.

Q: Do I have to be a racial minority to get a social equity license? A: No. Individuals of any race are welcome to apply for a social equity license if they meet the requirements for social equity applicants. Individuals do not need to be a racial minority to apply for or receive a social equity license.

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Frequently Asked Questions (cont’d)
Q: Who makes the final decision on my social equity application? A: The WSLCB makes the final decision on all applications.

Q: What is the next step after a final decision is made on my social equity application? A: Applicants will be notified, in writing, of the final decision of WSLCB regarding their social equity license.

Q: What can I do if I am not allowed to proceed to the next step in the application process? A: An applicant or licensee may request an administrative hearing to contest the disposition of its application for a social equity license.

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Frequently Asked Questions (cont’d)
Q: If I am not granted a social equity license, may I submit another application during the next window? If yes, when is the next window?
A: Yes. The date of the next application window has not been established by the WSLCB. When it is established, it will be promptly publicized on the website of WSLCB.

Q: If my family member was arrested or convicted for cannabis, can we both submit an application? A: Yes. You and your family member may submit an application jointly or separately provided that both of you are a true party of interest (TPI) in only one application.

Q: Can we obtain a copy of this PowerPoint presentation? A: Yes. This PowerPoint presentation will be posted on the websites of WSLCB and the social equity contractor for you to review and download.

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Best Practices: Application Guidance Tips
• Carefully review the applicant eligibility requirements in the Washington Administrative Code before you commence the application process. (https://lcb.wa.gov/se/social-equity-applicants) • Do not select more than one preferred jurisdiction
• Submit a complete application with payment pursuant to the specified instructions with all of the required information in the Document Checklist within the 30-day application window • Do not leave any blank spaces in your application. Respond to each question in the application. If a question does not apply to you, specify “N/A” and briefly indicate why it does not apply • Submit questions via email regarding the application process to: [email protected].

Responses will be provided via email within two business days. Do not attempt to contact the social equity contractor by telephone unless you are asked to return a call from the social equity contractor

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Best Practices (cont’d)
• Make sure that all information in your application and supporting documents is complete accurate, current and successfully submitted. Information provided by applicants will be verified for accuracy
• Each completed application must be signed by an authorized representative of the applicant • Respond to requests for additional information and/or documents in a timely manner and no later than 15 business days of the date of the letter
• Allow approximately three months for your application to be processed after submitting a complete application with all of the required supporting documentation • Applicants who submit complete applications and meet the eligibility requirements are not guaranteed to be granted a social equity license. Applicants who meet the eligibility requirements will be scored and ranked by using the WSLCB Scoring Rubric

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Best Practices (cont’d)
• Applicants will be notified, in writing, of the final decision of WSLCB regarding the decision of their social equity license
• An applicant or licensee may request an administrative hearing to contest the withdrawal or denial of a social equity license
• Do not submit multiple applications. Applicants will be required to withdraw applications that are submitted after their first application which will be the only application reviewed • Visit the WSLCB website for additional information regarding the Social Equity in Cannabis Program

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Social Equity Application Assistance
Not-for-profit organizations and agencies in the state of Washington that provide technical assistance services to small and diverse businesses:
• MakeGreenGo
• Department of Commerce
• Washington State Office of Minority and Women’s Business Enterprise • MBDA Business Center – Tacoma
• American Indian Chamber Education Fund PTAC
• U.S. Department of Commerce Minority Business Development Agency (MBDA) • U.S. Small Business Administration (SBA)
• White House Initiative on Educational Excellence for Hispanics • Women Entrepreneurs Inc.
• Women's Business Enterprise National Council (WBENC)

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Application Assistance (cont’d)
• Professional Women in Construction
• Washington State Small Business Development Centers
• Northwest Indian Applied Research Institute
• AHANA (African-American, Hispanic, Asian and Native Americans) Business Association • Tabor 100
• National Minority Business Council
• National Center for American Indian Enterprise Development • Latino Business Association
• INROADS
• Diversity 2000
• Count Me In for Women’s Economic Independence

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Application Assistance (cont’d)
• Asian American Business Development Center
• U.S. Dept. of Interior - Information about Tribes, BIA, Resources • Ventures - Small Business Services
• Ventures - Small Business Services
• Business Impact NW (BIN)
• Washington State Department of Enterprise Services Surplus Operations • Retirement Marketplace
• Pro Bono Washington
• Washington Tribes
• WSDOT Office of Equal Opportunity

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WSLCB Disclaimer
• Information provided by the WSLCB and its social equity contractor to participants during the Social Equity in Cannabis Program workshops is intended as a guidance reference to help educate and assist prospective applicants who seek to participate in the Program • Information provided during the Social Equity in Cannabis Program workshops is intended to promote high professional and business standards and right conduct, as well as, consistency, and standardization, but do not reflect or represent every conceivable issue or question that may arise during the application process
• Applicants are not required to attend the Social Equity in Cannabis Program workshops.

Participation is encouraged, but not required to get a social equity license • WSLCB is committed to advancing diversity, equity and inclusion in Washington state via its Social Equity in Cannabis Program
• For Additional information please see adopted program rules (

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WSLCB Social Equity in
Cannabis Program

QUESTIONS & ANSWERS

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EXHIBIT

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2018 Marijuana in
the Law: The Grass
is Greener . . . But
for Whom?
Presented By: Carol A. Cesaretti
Authored By: Dragomir Tsvetenov

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Road Map
Status Quo
Legal Status
Workers’ Compensation Issues
Conclusion

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MARIJUANA STATUS QUO

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Usage in the U.S.

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MARIJUANA LEGALITY

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Legal Status Quo
• The Federal Government deems marijuana to be a Schedule I narcotic controlled substance, meaning that it has no acceptable medical use. • Marijuana is now legal, in some form or another, in twenty nine States in the U.S. and D.C., with more states considering legalization measures every year.
• This creates an inherent contradiction between federal and state laws.

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Marijuana Legality
Dark Green – Recreational Use
Green – Medical Use
Light Green – Limited THC Medical Use
Grey – Illegal
D – Decriminalized

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Federal Law
• While marijuana remains illegal under federal law, the U.S. government seems to have little interest in challenging the state laws or prosecuting individuals who use marijuana in
compliance with state laws, regardless of the purpose of its use. • Although no action has been taken, Attorney General Sessions has signaled a willingness to reverse previous federal stance toward state marijuana legalization and return to prosecution.

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EMPLOYER/ WORKERS’

COMPENSATION ISSUES

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Employee Marijuana Use
Scenario 1: An employee sustains a traumatic injury at a jobsite.

To treat pain, the physician prescribes medical marijuana instead of an opioid.

Scenario 2: An employee sustains an injury at a jobsite and is asked to take a drug test after the fact. The test comes back positive for marijuana.

Question: Is the employer required to pay for medical marijuana? Is the employer required to pay benefits when they can show the employee was using marijuana at the time of the accident? And if the employer has a drug-free workplace policy in force, do they have the right to fire the employee for using marijuana either recreationally or for medical purposes?

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Additional Problems
• Lack of study
• Potential for overdose
• No data on delivery method or dosage
• ODG guidelines will not approve

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Opioid Crisis
- Drug overdose is the leading accidental cause of death in the United States
- 20,101 overdose deaths from painkillers in 2015
- 12,990 overdose deaths from heroin in 2015

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Employer Obligations

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Employer Accommodations?
- Under Federal Law for the
Americans With Disability
Act?
- Under State disability laws?
- Under the State’s marijuana
laws?
- Under state workers’
compensation laws?

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Barbuto
• “The fact that the employee's possession of
medical marijuana is in violation of Federal
law does not make it per se unreasonable as
an accommodation. The only person at risk
of Federal criminal prosecution for her
possession of medical marijuana is the
employee. An employer would not be in joint
possession of medical marijuana or aid and
abet its possession simply by permitting an
employee to continue his or her off-site
use.”
Barbuto v. Advantage Sales & Mktg., LLC, 477 Mass. 456, 78 N.E.3d 37 (2017)

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Accommodations
•The issue of whether an employer needs to provide an
accommodation may be difficult under state law – just because employers are not required by federal law to provide a medicinal marijuana usage accommodation, does not mean that the
employee is not entitled to an accommodation under state law.

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Workplace Policy
• Non-Medical marijuana use is more of a safe
harbor for an employer. If an employer maintains
a zero-tolerance policy for drug use and an
employee tests positive for marijuana without a
medical marijuana recommendation, the
employer is free to discipline that employee per
their policy, so long as they enforce that policy
consistently.

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Flynn v. Raytheon Co.

Employers who enforce drug-free work
policies still need to take care to
enforce those policies consistently. In
a Massachusetts case, an employee’s
suit for disability discrimination was
able to survive a motion to dismiss
when that employee was able to show
that his former employer’s anti-alcohol
policy was enforced more rigorously
against him that other employees.

Flynn v. Raytheon Co., 868 F. Supp.
383 (D. Mass. 1994).

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Signs of intoxication
- Relaxation
- Alteration of Perceptions
- Distortions of Time and Space
- Red Eyes
- Impaired Motor Skills
- Decreased Short Term Memory
- Dry Mouth
- Tachycardia
- Increased appetite
- Lowered blood pressure

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Accommodations
• Employers that must or choose to accommodate
medical marijuana users should be aware that they
must comply with all federal regulations, such as those already mentioned, but also that they are required to
provide a safe working environment for all of their
workers. If an accommodation would interfere with a
safe working environment, it should not be provided.

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Intoxication as a Defense

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Limitations
• The majority of states are drawing a line when it
comes to intoxication. It is not the blanket get out
of claim free card that some employers
misunderstand it to be. There’s a distinct
difference between things that the employee
CAUSES and things that HAPPEN TO an
employee.

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Employers to Pay
• Initially, most people assumed that courts could not and would not require employers and their workers'
compensation carriers to pay for medical marijuana while it remains a Schedule I drug under federal law. After all, a state court cannot require an employer to violate
federal statutes.
• However, in 2014, an appeals court in New Mexico ruled that if medical marijuana was recommended by the
physician, it must covered by workers' compensation.

Vialpando v. Ben's Auto. Services, 2014-NMCA-084,
331 P.3d 975.

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VIALPANDO
“Although not dispositive, we note that the [DOJ]
has recently offered what we view as equivocal
statements about state laws allowing marijuana
use for medical and even recreational purposes.

On one hand, the [DOJ] affirmed that marijuana
remains illegal under the CSA and that the [DOJ]
will continue to …enforce the statute. But, on the
other hand, and in the same documents, the
[DOJ] identified eight areas of enforcement
priority and indicated that outside of those
priorities it would generally defer to state and
local authorities.”
Vialpando v. Ben's Auto. Services, 2014-NMCA-084, 331 P.3d 975

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CONCLUSION

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Review
• Marijuana Status Quo?
• Legal Status.
• Employer Issues/ Workers’ Compensation.

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Questions?

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February 2020
The Cannabis Papers
Your source for everything you need to know about the legalization of cannabis the law and what's to come.

NOTICE: Implications of Legalization: Cannabis Regulation and Tax Act Illinois is poised to start the New Year off with a bang. Or at least with a smoke.

Recreational as well as medical cannabis became legal as of January 1, 2020 at midnight. We’ve been getting a lot of questions about the new law – what it covers and what it means. We want to help you stay informed and stay ahead of the game when it comes to this rapidly changing area of law so we’re introducing our new Cannabis Papers edition of the I.Q. Our Cannabis Law Practice Group will send out this newsletter on a quarterly basis to keep you up to date with what’s going on as there’s certain to be more changes and modifications to the law in days to come – especially as federal law evolves.

Surrounded by legislators and activists on June 25, 2019, Illinois Governor J.B. Priztker signed into effect House Bill 1438 – Cannabis Regulation and Tax Act (“CRTA”). This broad legislation will take effect on January 1, 2020. CRTA is expected to deliver increased tax revenues and serve as a model for future states in cannabis decriminalization and criminal justice reform. It’s also meant to serve as a model for future states with regards to legalization in the employment setting. Here’s a quick, ata-glance summary of the new law as it stands.

Cannabis Regulation and Tax Act: CRTA legalized the purchase, transportation, and storage of cannabis by those at least 21 years of age. While Illinois residents are

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Cudahy City CouncilFebruary 21, 2023

Cudahy City Council
February 21, 2023