Chapter 49
CANNABIS EQUITY PROGRAM
Sections:
5-49.03 Creation of the Watsonville cannabis equity program.
5-49.05 Equity program benefits.
5-49.01 Purpose.
The purpose of the chapter is to provide for administering a cannabis equity program in the City of Watsonville and in particular to mitigate the barriers to equity within the commercial cannabis market place for populations that were negatively or disproportionally impacted by cannabis criminalization and for pursuing aid from compassionate cannabis care programs.
This chapter is not intended to conflict with Federal or State law. It is the intention of the City that this chapter be interpreted to be compatible with Federal and State enactments and in furtherance of the public purpose that those enactments encompass.
(§ 1, Ord. 1381-19 (CM), eff. March 26, 2019)
5-49.02 Definitions.
As used in this chapter, the following words and phrases shall have the meanings respectively ascribed to them by this section:
(a) “Applicant” shall mean the person or entity submitting an application for eligibility to participate in the equity program.
(b) “Cannabis” shall mean all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, as defined under Business and Professions Code Section 26001(e), as may be amended.
(c) “Commercial cannabis activity” shall have the definition provided in Business and Professions Code Section 26001(j), as may be amended, and for which a state license is required under Business and Professions Code Section 26000 et seq.
(d) “Commercial cannabis business” shall mean a business that is licensed or permitted to engage in a commercial cannabis activity.
(e) “Equity program” shall mean the cannabis equity program created by this chapter.
(f) “Permit” shall mean the written evidence of permission given by the permitting official for a licensee to engage in a commercial cannabis activity under Chapter 14-53. “Permit” does not mean “permit” within the meaning of the Permit Streamlining Act, and a permit does not constitute a permit that runs with the land on which a cannabis business sits.
(g) “Permittee” shall mean the person or entity holding a valid permit to engage in a commercial cannabis business under Chapter 14-53.
(h) “Permitting official” shall mean the official appointed by the City Manager who is responsible for implementing the provisions of this chapter.
(§ 1, Ord. 1381-19 (CM), eff. March 26, 2019, as amended by § 1, Ord. 1448-22 (CM), eff. December 15, 2022; § 2, Ord. 1470-24 (CM), eff. December 12, 2024)
5-49.03 Creation of the Watsonville cannabis equity program.
(a) There is hereby created the Watsonville cannabis equity program. The program shall be operated by the licensing official.
(b) The licensing official shall take the necessary steps to build and manage the equity program. This includes, but is not limited to, accomplishing the following tasks in compliance with this chapter:
(1) Create grant application forms for new commercial cannabis businesses;
(2) Approve and deny grant equity program applications;
(3) Create and conduct workshops for applicants on various technical aspects of commercial cannabis businesses regulatory compliance;
(4) Establish methods to provide direct technical assistance to applicants and licensees, such as, for example: cultivation, manufacture, testing, dispensary (retailer), delivery and microbusiness;
(5) Create a system to administer fee waivers for cannabis-related use permits and business licenses;
(6) Create a system to provide direct assistance in paying State regulatory and licensing fees and appropriate capital investment for program participants;
(7) Assist applicants and licensees securing business locations before or during the use permit and cannabis business license process;
(8) Establish and/or recommend adoption of any policies, procedures, rules, or regulations, necessary to implement the program; and
(9) Work with other officials in the City to ensure that applicants and licensees comply with all aspects of the Municipal Code.
(§ 1, Ord. 1381-19 (CM), eff. March 26, 2019)
5-49.04 Eligibility criteria.
(a) For business entities applying under this program, at least fifty-one percent (51%) of the applicant’s business must be owned and/or controlled by one (1) or more individuals who will hold such interest for at least five (5) years and who can demonstrate that they meet the following two (2) criteria:
(1) Have been negatively impacted in a disproportionate way by cannabis criminalization in at least one (1) of the following ways:
(i) Job loss or forgone job opportunity;
(ii) Loss of educational opportunity, financial aid, or scholarship;
(iii) Loss of professional or business license;
(iv) Incarceration due to a nonviolent cannabis-related offense; or
(v) Have a parent or guardian, sibling or child who was arrested for or convicted (nonviolent) of the sale, possession, use, manufacture, or cultivation of cannabis (including as a juvenile) from 1971 to the current year.
(2) Reside within boundaries of the Pajaro Valley Unified School District for the past five (5) years.
(b) In addition to the two (2) criteria listed in subsection (a) of this section, applicants must also demonstrate that they meet at least one (1) of the following three (3) standards:
(1) Attended school in the Pajaro Valley Unified School District for a total of five (5) years;
(2) Are economically disadvantaged, which may be demonstrated by the following:
(i) Filed for bankruptcy under Chapters 7, 11, 12 or 13 of the United States Bankruptcy Code;
(ii) Loss of primary residence though a judicial or nonjudicial foreclosure after 2005, or have otherwise been involuntarily displaced from their primary residence such as by eviction or subsidy cancellation;
(iii) Long-term unemployment or recurrent seasonal unemployment;
(iv) Long-term poverty status;
(v) Low or negative net worth not exceeding One Hundred Thousand and no/100ths ($100,000.00) Dollars (excluding principal residence);
(vi) Have a household income below the federal poverty threshold for at least five (5) years in any period between 1971 and the most recent filing year; or
(vii) Have a household income below eighty (80%) percent of the average median income (AMI) for the most recent filing year based on the number of people in your household.
(§ 1, Ord. 1381-19 (CM), eff. March 26, 2019, as amended by § 1, Ord. 1448-22 (CM), eff. December 15, 2022; § 2, Ord. 1470-24 (CM), eff. December 12, 2024)
5-49.05 Equity program benefits.
Assistance for equity businesses is subject to the availability of grant funding. Assistance for equity program licensees may include but not be limited to the following:
(a) Workshops to gain a better understanding of various technical aspects of compliance with local and State regulations;
(b) Direct technical assistance with all categories and levels of State and local licensing issues, including but not limited to:
(1) Assistance with technical aspects of local permit application drafting;
(2) Training on and direct assistance in applying for air district permits, hazardous materials business permits, and other permits and programs to be identified by the licensing official;
(3) Training on small business development including accounting, budgeting, human resources and marketing; and
(4) Assistance with industry-specific technology such as Metrc.
(c) Fee waivers for use permits and cannabis business licenses;
(d) Direct assistance paying for State licensing and regulatory fees; and
(e) Assistance from the Community Development Director with securing business locations prior to or during the use permit and cannabis business license process.
(§ 1, Ord. 1381-19 (CM), eff. March 26, 2019, as amended by § 1, Ord. 1448-22 (CM), eff. December 15, 2022)
5-49.06 Severability.
If any section, subdivision, paragraph, sentence, clause or phrase of the ordinance codified in this chapter is for any reason held to be unconstitutional or invalid, such a decision shall not affect the validity of the remaining portion of the ordinance. The Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause or phrase of the ordinance codified in this chapter irrespective of the unconstitutionality or invalidity of any other section, subdivision, subsection, paragraph, sentence, clause or phrase of the ordinance codified in this chapter.
(§ 1, Ord. 1381-19 (CM), eff. March 26, 2019)