1 SANTA ROSA CANNABIS EQUITY
ASSESSMENT
CITY COUNCIL
NOVEMBER 28, 2023
Monet Sheikhali
Senior Planner
Planning and Economic Development
PRESENTATION OVERVIEW
• Background & Purpose of Session
• Overview of Cannabis Equity Assessment
• Next Steps
• Timing
• Staff Recommendation
2 BACKGROUND
• California Cannabis Equity Act (AB 97 (Stats. 2019, Ch. 40)) • California Cannabis Equity Act (AB 97 (Stats. 2019, Ch. 40)) • Agreement between Department of Cannabis Control (DCC) and Governor’s Office of Business and Economic Development (Go-Biz)
• Cannabis Equity Grants Program for Local Jurisdictions • City of Santa Rosa awarded $75,000 Grant (Type 1)
• Conduct cannabis equity assessment
3 PURPOSE OF SESSION
• Receive and accept the cannabis equity
assessment
• Direct staff on next steps
4 DEVELOPING A LOCAL CANNABIS
EQUITY PROGRAM
1. Outreach and Education
2. Cannabis Equity Assessment
3. Program Development
4. Program Implementation
5 OUTREACH AND EDUCATION
• Development of Equity Webpage
• Online Survey (May 2023)
• Community Meeting (June 2023)
• Stakeholder Interviews (Jul-Aug 2023)
6 Feedback incorporated
into Equity Assessment
and Program
Development
CANNABIS EQUITY ASSESSMENT
• Data-informed look at history and impact of cannabis
enforcement and criminalization
• Analysis of Police statistics, demographics, poverty, and educational attainment
• Identify barriers to entry
• Provide policy recommendations for program development:
• Program Eligibility, Program Benefits/Services, Regulatory Changes 7 ANALYSIS PROCESS
8 Identify
Disparities
Map Arrest
Hotspots
Map low-
income and
minority
populations
Map overlap of
arrests data
Identify
Impacted
Communities
SANTA ROSA DEMOGRAPHICS
9 Race/Ethnicity Population Percent
White Alone 111,660 62.3%
Hispanic or Latino 60,914 34.0%
Other 34,294 19.1%
Two or More Races 15,972 8.9%
Asian Alone 10,653 5.9%
Black or African American Alone 3,610 2.0%
American Indian and Alaska Native Alone 2,223 1.2% Native Hawaiian and Other Pacific Islander Alone 801 0.4% Source: U.S. Census Bureau, 2017-2021 American Community Survey 5-Year Estimates CANNABIS -RELATED ARRESTS (2004 -
2023)
10 • 4,781 cannabis-related arrests from 2004-2023
CANNABIS -RELATED ARRESTS BY RACE
11 Total Percent Total Percent
White 2,517 52.6% 111,660 62.3%
Hispanic or Latino 1580 33.0% 60,914 34.0%
Black or African American 450 9.4% 3,610 2.0%
Asian 85 1.8% 10,653 5.9%
American Indian and Alaska Native 58 1.2% 2,223 1.2% Other 56 1.2% 3,610 2.0%
Native Hawaiian and Other Pacific Islander 11 0.2% 801 0.4% 2 Source: U.S. Census Bureau, 2017-2021 American Community Survey 5-Year Estimates Arrests Population
(2004-2023)1Race/ Ethnicity (2021)2
1 Source: Santa Rosa Police Department
IDENTIFICATION OF DISPROPORTIONATELY
AFFECTED COMMUNITIES
• Three Key Indicators:
• People of Color Populations
• Low-Income Populations
• Educational Attainment Levels
• Geospatial analysis of arrests locations across the three indicators
12 PEOPLE OF
COLOR
POPULATIONS
13 LOW-INCOME
POPULATIONS
14 EDUCATIONAL
ATTAINMENT
15 FINDINGS
16 Census Tract Number of
Arrests Population POP % Percent of
Arrests
% People of
Color % Low Income % Not Completed
High School
151404 45 2967 1% 1% 88% 30% 42%
153102 42 6109 3% 1% 86% 31% 35%
153104 93 3687 2% 2% 73% 49% 36%
152803 67 4787 2% 1% 72% 30% 35%
153103 28 4489 2% 1% 67% 36% 21%
153201 265 4115 2% 6% 67% 23% 22%
151405 21 7245 3% 0% 64% 39% 22%
153202 26 3414 2% 1% 64% 26% 30%
153302 38 5690 3% 1% 64% 25% 33%
153002 374 6921 3% 8% 63% 35% 30%
152903 136 4942 2% 3% 63% 31% 26%
153301 140 6290 3% 3% 59% 19% 16%
153003 148 5598 3% 3% 58% 31% 20%
151406 123 3142 2% 3% 55% 52% 26%
152000 689 2165 1% 14% 55% 37% 12%
153006 55 7978 4% 1% 54% 11% 23%
153001 100 6928 3% 2% 54% 28% 15%
151403 32 4827 2% 1% 52% 20% 11%
152100 297 3089 1% 6% 50% 31% 22%
152804 82 3217 2% 2% 49% 39% 18%
152904 254 5793 3% 5% 47% 11% 7%
153005 41 7153 3% 1% 46% 23% 7%
152502 208 4146 2% 4% 46% 26% 10%
Green Minimal Impact
Yellow Low Impact
Orange Moderate Impact
Red High Impact
CONCLUSIONS
• African American Individuals arrests nearly 5x higher than their proportion in population
• Census Tracts 153002 and 152000 highest percentage
arrests
• >55% People of color
• >35% Low-income households
17 BARRIERS TO ENTRY
18 Financial:
• Access to capital or
financing – start-up
and operational
• Access to real estate
• High Fees & Taxes
Technical:
• General business
ownership
• Lack of industry
knowledge / legal
and regulatory rules
• Difficult application
and permitting
processes
• Awareness of
opportunities
Criminal:
• Existing Criminal
records
Other:
• Distrust of
government
• Caps on number of
licenses
• Social stigma
associated with
Cannabis industry
• Zoning
POTENTIAL PROGRAM
SERVICES/BENEFITS
19 • Loans/Grants for Financing Capital
• Fee Deferral or Reduced Fees
• Training and Certification Fees
Financial Assistance:
•Application Assistance and Workshops
•Pro bono Legal Assistance
Administrative/ Technical Assistance:
•General Business Development Training
•Cannabis Specific Business Development Training
•Cannabis Regulatory Compliance Training
•Workforce Development
Business Acumen:
•Expedited Application, Permitting, and Plan Check Review •Additional Permits Reserved for Equity Applicants
•Public Outreach, Education, & Awareness Campaign Outreach •Incubator / Shared Use Facilities / Apprenticeship Program •Record Expungement Program
Other:
KEY ASSESSMENT FINDINGS AND
RECOMMENDATIONS
• Finding #1: Equity program eligibility criteria should focus on the inclusion of populations and communities disproportionately impacted by cannabis enforcement.
• Recommendation: The City should consider the following criteria:
• Cannabis conviction or arrest history
• Low-income status
• Residency
• Equity Business Ownership %
20 KEY ASSESSMENT FINDINGS AND
RECOMMENDATIONS
• Finding #2: The equity program application and permitting process should be structured to ensure equity applicant success and incentivize ongoing support.
• Recommendation: The City should consider the following criteria:
• Priority Application and Permit Processing
• Amnesty Program for non-permitted businesses
21 KEY ASSESSMENT FINDINGS AND
RECOMMENDATIONS
• Finding #3: The City’s equity program must develop and implement benefits/services for equity applicants that address and mitigate barriers to entry.
• Recommendation: Provide the following benefits:
• Fee waivers
• Grant Program
• T echnical Assistance Program
22 KEY ASSESSMENT FINDINGS AND
RECOMMENDATIONS
• Finding #4: A criminal history can limit an individual’s ability to gain employment, apply for government assistance, and/or obtain a loan.
• Recommendation: Develop Cannabis Expungement Program
23 KEY ASSESSMENT FINDINGS AND
RECOMMENDATIONS
• Finding #5: Advance workforce development opportunities in the cannabis industry.
• Recommendation: Advancing workforce development by:
• Require all cannabis businesses to provide equitable
employment
• Creation of a cannabis training program
• Establish partnerships with existing curriculum developers to assist with entrepreneurship and workforce development
24 KEY ASSESSMENT FINDINGS AND
RECOMMENDATIONS
• Finding #6: Equity Program Funding.
• Recommendation:
• Apply for Go-biz Type 2 funding
• Consider allocation a portion of Cannabis Tax revenue 25 KEY ASSESSMENT FINDINGS AND
RECOMMENDATIONS
• Finding #7: Conduct public outreach and education to increase awareness of the equity program and reduce
social stigma.
• Recommendation:
• Host Community Meetings / Workshops
• Media and Public Relations
• Social media and Online Presence
26 NEXT STEPS
• Develop Cannabis Equity Program
• Adopt Cannabis Equity Program
• Program Implementation
• Apply for Grant Funding
27 ADOPTING A CANNABIS EQUITY
PROGRAM
• Key Components:
• Eligibility Criteria
• Program Services
• Program Administration
28 ELIGIBILITY CRITERIA
• Establishes who qualifies to participate in the City’s Program • Once qualified and admitted to the program
• Participants will have access to all support services offered by the Program
29 CANNABIS EQUITY GRANT FUNDING
(GO -BIZ)
• Annual Grant solicitation period opens in October
• Submission deadline in mid-December
• Funding Request Type 2:
• May request up to $3 million to provide grants, loans, and technical assistance (1:1 matching funds required for grants > $500k)
• 10% of grant award may be used for technical assistance • 10% of grant award may be used for administration
30 TIMELINE
• Draft Cannabis Equity Program (Winter-Spring 2024)
• Council Adoption (Summer 2024)
• Release Phase 1 Application (Fall 2024)
• Apply for Grant Funding for FY 2024-25 (December 2024) 31 RECOMMENDATION
It is recommended by the Planning and Economic Development Department that the Council, by resolution, 1) Accept the City of Santa Rosa Cannabis Equity Assessment and 2) Direct staff to prepare a cannabis equity program.
32