Community DevelopmentCannabis Follow-Up
Stephanie Ocasio, Director of Community DevelopmentMarch 24, 2025 1/27/2025 Follow-ups•Website updated ✓•Information on existing business including mapping & crime stats (Slides 4, 6 – 11)•Update on current applications in-process (Slide 5)•Research Request : Adding race/ethnicity into the equity program (Slide 14)•Research Request : Can the City restrict applicants to residents of the City or County? Cannabis Regulatory Program HistoryNovember 8, 2016Measures P & Q PassedJune 27, 2017 Senate Bill 94November 7, 2017Ord. 2017-11-07-1502 AdoptedSeptember 18, 2018Ord. 2018-09-18-1502 AdoptedMarch 5, 2019Ord. 2019-03-05-1501 AdoptedJuly 16, 2019Ord.2019-07-16-1504 AdoptedJune 23, 2020Ord. 2020-06-23-1103 Adopted2021 Cannabis Equity Grant & AssessmentMarch 1, 2022Ord. 2022-03-01-1601 Adopted Summary of Active Businesses
*These locations count toward 14 Retail Storefront cap
Pending Application Statuses
1901 Navy Drive (Cultivation)CUP approved 7/14/2022, expires 7/13/25. No building permit applications submitted. 1903 Navy Drive (Cultivation)CUP approved 9/14/2017. Building application permit expired 3/11/2025 but may be renewed under a new contractor. 2521 West Lane (Retail Storefront)CUP extension approved to 10/24/25. Building permit is ready to issue. 1137 S Stockton Street (Retail Storefront)CUP approved 4/11/2024, expires 4/21/25. No building permit applications submitted. 4895 S State Route 99 E Fr Road C (Retail Storefront & Delivery)CUP Planning Commission hearing date 3/27/25 District 1: Businesses & BuffersCrime Stats: PD Calls Resulting in a ReportSee Attachment A for details•No operating cannabis businesses
District 2: Businesses & BuffersCrime Stats: PD Calls Resulting in a ReportSee Attachment A for details3706 E Hammer Lane 6•At Location: 1•1000’ Radius: 2103008 E Hammer Lane 108•At Location: 0•1000’ Radius: 847840 West Lane F•At Location: 5•1000’ Radius: 244
District 3: Businesses & BuffersCrime Stats: PD Calls Resulting in a ReportSee Attachment A for details7632 Pacific Ave•At Location: 0•1000’ Radius: 219
District 4: Businesses & BuffersCrime Stats: PD Calls Resulting in a ReportSee Attachment A for details1550 Fremont Street•At Location: 1•1000’ Radius: 50633 San Juan Ave•At Location: 1•1000’ Radius: 502233 Grand Canal Blvd 208•At Location: 0•1000’ Radius: 308
District 5: Businesses & BuffersCrime Stats: PD Calls Resulting in a ReportSee Attachment A for details1621 Navy Drive Bldg 1•At Location: 0•1000’ Radius: 21678 N Wilson Way•At Location: 0•1000’ Radius: 355
District 6: Businesses & BuffersCrime Stats: PD Calls Resulting in a ReportSee Attachment A for details•No operating cannabis businesses
Stockton Lottery Process
Cannabis Lottery Statistics
1. Reduced Business Types2. Updated Administrative Guidelines3. $200 application fee 2024*2023*2022202120202019Lottery Year222271,7672671,727Total Submissions120191,022335ApplicationsDeniedGeneral: 1Equity: 0General: 1Equity: 1General: 7Equity: 1General: 689Equity: 56264General: 716Equity: 976Total Lottery Pool(made to the lottery drawing)General: 1Equity: 0General: 1Equity: 1General: 2Equity: 1General: 4Equity: 4General: 4Equity: 4General: 4Equity: 4Lottery Winners(selected in lottery) *No lottery conducted due to low number of qualified applications.
Equity Program & Ethnicity: City Comparisons
The Equity Programs of various cities were reviewed to determine if an applicant's race or ethnicity is utilized to determine equity eligibility.Findings•San Francisco•Requires applicants to meet income and asset limits•Must meet 3+ conditions (e.g., past cannabis arrests, eviction, low-income census tract residency)•Los Angeles•Do not ask about race or ethnicity•Long Beach•Demographic data is collected from license holders only (for tracking purposes only), not during the application process•Oakland•Eligibility based on residency, income, or past cannabis conviction•Requires proof of residency, income, and/or conviction recordsKey Takeaways•Have not found any cities that consider race or ethnicity in approval decisions•Equity criteria tends to focus on income, location, and justice system impact•Some cities collect demographic data after approval, for research purposes Residency Requirement
Question: Is there a legal mechanism available to restrict non-Stockton residents or outside entities from applying for cannabis business permits in Stockton? •Cities can restrict general program or provide additional incentives for residents with a legitimate reason. Examples: Excluding non-residents or incentivizing residents to provide an economic benefit to the City, a cultural benefit, or addresses a historical imbalance in cannabis or in local business ownership (i.e., non-resident ownership in existing businesses).•The Constitution's 14th Amendment's Equal Protection Clause prohibits states from denying anyone equal protection of the laws; interpreted to mean that states cannot discriminate against people based on residency or other arbitrary classifications. •The Dormant Commerce Clause has been found to prohibit any state action that limits the issuance of licenses only to individuals that have met state residency requirements.
Potential Options & Staff Direction
Options•Decrease Retail Storefront Cap to existing 6 plus 1 pending (if approved)•Add cap on Microbusiness types that include Retail Storefront•Increase distance requirements from sensitive uses (2500 feet, ½ mile, etc.)•Eliminate Cannabis use from zoning district(s) where currently allowed, creating legal nonconforming uses•Change from lottery system to weighted scoring system, placing priority weighting criteria to local residents, utilize examples from Cities of Merced, Riverside, and Monterey.•Amend post-approval process to include optional demographic surveys for tracking purposesQuestions from Staff:•Expand Business Hours to meet State limits (6:00 a.m. and 10:00 p.m. PST) per Legislative Committee direction on August 28, 2024?•Proceed with 2025 Lottery? Questions?