California Cannabis Regulators Expand Eligibility, Increases Award Amounts for Local Jurisdiction Retail Access Grant

SACRAMENTO, Calif., Aug. 31, 2023 – PRESS RELEASE – Continuing its work to shift California cannabis consumers from the illegal market into the legal market by expanding access to legal cannabis retail where such access does not currently exist, the Department of Cannabis Control (DCC) is issuing revised and updated Phase II guidelines for the Local Jurisdiction Retail Access Grant (LJRAG), making it more accessible for local jurisdictions to apply for funding.

This comes after the department announced in June that it had provided $4 million in grants to 18 local jurisdictions during Phase 1 of the program.

RELATED: California Awards $4 Million in Grant Funding to Local Jurisdictions to License Cannabis Retailers

Designed to assist local jurisdictions in establishing cannabis retail licensing programs and issuing retail licenses, Phase II of the program also increases award amounts to local jurisdictions.

“There are still many locations throughout the state where cannabis usage is notable, but existing consumers do not have convenient access to legal retail cannabis,” DCC Director Nicole Elliott said. “We know that cannabis consumers often make purchasing choices based on convenience, so sufficient access to legal retail reinforces extremely important consumer safeguards.”

RELATED: California’s Retail Logjam Leaves Legal Cannabis in Jeopardy

Not only do 61% of cities and counties outlaw cannabis retail operations in California, according to the DCC, but only 1,216 dispensary licenses are active as of Sept. 1, 2023. That equates to 3.1 retail locations per 100,000 people, the lowest rate among the most mature markets in the nation.

Phase II funding is tied to the local jurisdiction’s issuance of local permits or licenses authorizing cannabis retail. Under the revised Phase II guidelines released Aug. 31, eligible local jurisdictions may apply for funding regardless of if they participated in Phase I. This means that more than 300 cities and counties may be able to pursue funding in Phase II.   

Phase II Eligible Applicants: Local jurisdictions (city, county, or city and county) that:

• Prior to July 1, 2022, did not have a cannabis retail licensing program in existence.
• Has a plan to develop and implement a cannabis retail licensing program; and
• Has issued one or more cannabis retail licenses to cannabis businesses within the jurisdiction of the city or county pursuant to that program.

In addition to expanding the eligibility for potential applicants, the Phase II funding amounts for the issuance of a retailer license and equity retailer license have been doubled. Now, a jurisdiction may receive $150,000 per eligible retailer license and $300,000 per eligible equity retailer license issued, subject to available funding. The previous amounts were $75,000 and $150,000.

Fifteen million dollars will be available for award in Phase II. Phase I awarded $4.1 million in grants to 18 cities and counties throughout the state.

For more information on LJRAG, including the application deadlines, visit: https://cannabis.ca.gov/about-us/grant-funding/local-jurisdiction-retail-access-grant.