Many rural communities in California have a history of entrenched local poverty and economic hardship. These communities were impacted significantly by the criminalization of cannabis, including Sonoma County communities as illustrated on page 25 of the Sonoma County Cannabis Equity Assessment (2021) (CEA). According to the CEA, targeted, data-driven, and well-funded equity programs can help communities and populations, especially ancillary cannabis businesses, into a legal and sustainable economic future.
The purpose of this program is to utilize funds from the Governor’s Office of Business and Economic Development (GO-Biz) Cannabis Equity Grant program to aid equity applicants and licensees to build a business in the regulated market.
The application process will be two phases:
Phase 1 – Applicants apply to become a Verified Cannabis Equity Applicant/Operator
Phase 2 – Verified Cannabis Equity Applicants/Operators apply for Cannabis Equity Grant funding.
Individuals and not business entities are the only ones eligible that can apply to the Cannabis Local Equity Program.
Applicants/operators who meet any one of the Tier A criteria listed below and provide verifiable documentation may be deemed Verified Cannabis Equity Applicants/Operators.
Tier A Eligibility Criteria
Applicant conviction and/or arrest history
Applicant was arrested and/or convicted of the sale, possession, distribution, use, manufacture, or cultivation of cannabis (including as a juvenile), or other non-violent cannabis-related crime, or been subject to asset forfeiture because of a cannabis-related offense between 1971 and 2016.
Family conviction and/or arrest history
Applicant with a parent, sibling, spouse, child, guardian, or member of immediate household who was arrested for or convicted of the sale, possession, distribution, use, manufacture, or cultivation of cannabis (including as a juvenile), or other non-violent cannabis-related crime between 1971 and 2016.
Low-income status
Applicant whose household income is at or below the “Low Income 60% Area Median Income” level based on the Department of Housing & Urban Development (HUD) State and Local Program income limits (ILs) for Sonoma County.*
Residency in low HDI areas
Applicant lived for at least five years between 1971 and 2016 in a census tract identified in the Portrait of Sonoma (2021) as having an American Human Development Index (HDI) of less than or equal to 6.19.**
*For an outline of the relevant Sonoma County income limits, please see the following link: Income and Rent Limits (ca.gov).
**For the list of American Human Development Index by census tract, please see the Portrait of Sonoma (2021) at the following link: Portrait of Sonoma County (ca.gov).
You can show proof of conviction, arrest, or asset forfeiture using any of the following:
Copies of federal or state court records that show the outcome of the case
Records showing dismissal or expungement
Any other court or law enforcement record that shows proof of conviction or arrest
Declarations from attorneys familiar with your conviction history
Records documenting asset forfeiture
You can show proof of low income by using any of the following:
Individual federal tax returns, state tax returns, or W-2s
At least two consecutive paystubs
Proof of eligibility for a program that provides financial aid to adults without enough income or resources, such as CalFresh, MediCal, CalWORKS, supplemental security income, or social security disability
You can show proof of residency by using any two of the following:
California Driver’s License or State Identification Card
Property tax bill or payment, or evidence that the owner is exempt from property tax payment
Signed rental agreement, or deed or title to residential property
Copies of state or federal tax returns
School records
Banking or credit card records
Voter registration
Credit reports
Utility, cable, or internet billing or payment records
Vehicle titles or proof of vehicle registration
The records must include the equity applicant’s name, show an address in the jurisdiction, and be dated between 1971 and 2016. An immediate household member may include a spouse, child, stepchild, parent, stepparent, sibling, half-sibling, stepsibling, legal guardian, or grandparent.
*Note that most information provided to the County is a public record, however, the County will not disclose confidential personal and financial information. If confidential information is not required to verify compliance with the eligibility criteria, please redact prior to submittal. Please mark or label any information submitted that you consider confidential.
To determine and categorize which individual applicants are most in need of support, a score will be determined for each equity applicant based on the number of eligibility criteria the applicant meets. Tier A criteria will be scored at two points each and Tier B criteria will be scored at one point each. The County reserves the right to adjust eligibility criteria and scoring method as needed to reflect current needs and trends in the County. The score will support prioritization of services and support for equity applicants. The goal of the applicant scoring system is to ensure that those most impacted by cannabis criminalization and poverty have priority access to local equity program funding.
Tier B Eligibility Criteria
Size of operation
Applicant has “small scale” cultivation as defined by Sonoma County’s ministerial (zoning) permit criteria as stated in Ordinance No. 6436 adopted June 6, 2023.
School district enrollment
Applicant is legal guardian of at least one child that has been enrolled in a Sonoma County School District for at least five (5) consecutive years prior to application.
Wildfire Damage
Applicant operating in the legal cannabis industry in Sonoma County who has been directly impacted (i.e.: damage to/loss of home or business) by wildfires in the County in the period from 2017 to present.
Participation in PRP
Applicant currently participates in or previously participated in the cannabis Penalty Relief Program (PRP).
Shift in Land Use Requirements
Applicant was cultivating on land zoned Agricultural Residential (AR) or Rural Residential (RR) when cannabis Ordinance No. 6189 adopted December 20, 2016, which did not allow for commercial cultivation in those zoning districts; or on a parcel under 10 acres in size when the minimum parcel size was raised per Ordinance No. 6245 adopted October 16, 2018.
Participation in Foster Care System
Applicant was a part of the foster care system.
Drug Diversion Program Completion
Applicant has completed a drug diversion program.
Residency consideration
Applicant has resided in Sonoma County for at least ten years in the period between 2011 and the present.
Veteran status
Applicant is a veteran of the United States Armed Forces.
Equity Licensee Status
Applicant is a verified Department of Cannabis Control Equity Licensee.
You can show proof of Tier B Eligibility Criteria by using any of the following:
Penalty Relief Program Local Authorization Letter
Letter of confirmation of Department of Cannabis Control Equity Licensee status
DD Form 214 or Veteran Status Verification Form
Utility (PG&E, water, cellular phone) bill in applicant’s name
Rental or lease agreement with signatures and in the applicant’s name
School district certificate of enrollment or verification/proof of school enrollment
*Note that most information provided to the County is a public record, however, the County will not disclose confidential personal and financial information. If confidential information is not required to verify compliance with the eligibility criteria, please redact prior to submittal. Please mark or label any information submitted that you consider confidential.
No, there is not an ownership requirement, but an applicant must be named as a member, manager, or officer on the Statement of Information submitted to the California Secretary of State. Only a maximum of two (2) applicants per business may receive an Equity Grant.
Applicants in a current grant agreement are not eligible for a new grant agreement prior to the end of the term of the current grant agreement. If you received a grant in calendar year 2024, you will not be eligible for grant funding prior to June 30, 2026.
Individuals and not business entities are the only ones eligible to apply to the Cannabis Local Equity Program. Additionally, equity applicants must be currently operating, have a pending permit application, or plan to apply for a permit to operate during the term of the funding agreement.
Grants are typically considered part of gross income. The County does not offer advice on possible tax liability or implications with regards to grants. Applicants are encouraged to reach out to a tax professional.
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