CITY COUNCIL STAFF REPORT
DATE: February 11, 2026 CONSENT CALENDAR
SUBJECT: ADOPTION OF A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF PALM SPRINGS TO ENTER INTO AN AGREEMENT WITH THE
GOVERNOR’S OFFICE OF BUSINESS AND ECONOMIC
DEVELOPMENT FOR CANNABIS EQUITY GRANT FUNDING
FROM: Scott C. Stiles, City Manager
BY: Special Program Compliance
SUMMARY:
Staff seeks authorization to enter into an agreement for grant funding in the amount of $650,000 through the Governor’s Office of Business and Economic Development (GO- BIZ) for State Cannabis Equity funding. Staff recommends the City adopt the Resolution authorizing the City Manager to execute the agreement for grant funds authorized by the California Cannabis Equity Act of 2018 established by Senate Bill 1294 and as amended by Assembly Bill 97.
RECOMMENDATION:
1. Adopt a Resolution entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF PALM SPRINGS, CALIFORNIA, TO ENTER INTO AN AGREEMENT WITH THE GOVERNOR’S OFFICE OF BUSINESS AND ECONOMIC
DEVELOPMENT FOR CANNABIS EQUITY GRANT FUNDING.”
2. Authorize the City Manager to execute all documents consistent with this Resolution.
BACKGROUND:
On March 20, 2018, the City Council adopted a Resolution authorizing the implementation of the Cannabis Social Equity Program (“Program”). The Program, as proposed, was contingent on funding by the Cannabis Equity Act of 2018 (“Act”). The grant funds received from the State of California are for the purpose of assisting local equity applicants and local equity licensees to gain entry to and successfully operate in the State’s regulated cannabis marketplace.
City Council Staff Report
February 11, 2026 -- Page 2
Cannabis Equity Grant Funding
On October 8, 2025, the Governor’s Office of Business and Economic Development announced a release of the Grant Solicitation for the Cannabis Equity Grants Program for local jurisdictions. The Department of Special Program Compliance submitted an application for Type 2 funding. Based on the review by GO-BIZ, the City is being awarded $650,000. Funds may be utilized to provide assistance with startup and ongoing costs, including but not limited to, rent, leases, local and state application and licensing fees, regulatory adherence, testing of cannabis, equipment, capital improvements, and training and retention of a qualified and diverse workforce.
More information about the Cannabis Equity Grant may be found at:
https://business.ca.gov/cannabis-equity-grants-program-for-local-jurisdictions/
STAFF ANALYSIS:
Palm Springs has been on the forefront of cannabis legalization. The City will utilize grant funds to provide assistance to applicants from communities that have been disproportionately impacted by cannabis prohibition. The goal of the program is to assist qualified equity permittees in the legal cannabis industry. The ability to provide financial assistance to permittees creates a greater opportunity for success in the legalized cannabis marketplace.
ENVIRONMENTAL ASSESSMENT:
The requested City Council action is not a “Project” as defined by the California Environmental Act (CEQA). Pursuant to Section 15378(a), a “Project” means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.
According to Section 15378(b), a Project does not include: (5) Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.
ALIGNMENT WITH STRATEGIC PLANNING:
This item aligns with the following City Council Strategic Plan Broad Goal: Economic Development.
FISCAL IMPACT:
This year’s grant did not require the City to match funds, as it is under $750,000.
City Council Staff Report
February 11, 2026 -- Page 2
Cannabis Equity Grant Funding
City Council Staff Report
February 11, 2026 -- Page 3
Cannabis Equity Grant Funding
REVIEWED BY:
Department Director: Veronica Goedhart
Assistant City Manager: Teresa Gallavan
City Manager: Scott Stiles
ATTACHMENTS:
A. Resolution