Eureka, Calif. — The Humboldt County Board of Supervisors voted 4-0 on Aug. 26 to direct staff to administer the next round of Project Trellis local equity funds primarily for Measure S and property tax past-due balances and planning/building fees, while adding state cannabis licensing fees as an eligible, prioritized use for applicants who are current on county requirements.

The action keeps the county on Alternative A, as presented by staff, but with the board-authorized amendment that staff may pay an applicant’s current-year state license fee and prioritize applicants who are current on county compliance. Chair Bushnell made the motion and the board approved it unanimously.

Project Trellis is a state- and county-funded program intended to help people disproportionately affected by cannabis prohibition enter or remain in the regulated market. Peggy Murphy, a county staff presenter, told the board the upcoming round (identified by the state as CEG‑658) totals $657,437 before a 10% administrative charge: “Just to clarify, the upcoming round ... is $657,437 at minus a 10% administrative charge.”

Nut graf: The board moved to narrow allowable uses of the roughly $657,000 allocation because staff warned expanded business-support uses would sharply increase administrative workload. Advocates for broader eligibility said restricting the funds mainly to back taxes disadvantages compliant, legacy growers; supervisors said they wanted to reward those who have stayed current while recognizing staff capacity limits.

More details: County staff and community stakeholders debated two basic approaches. Alternative B would permit a wide range of business expenses — rent, compliance costs, capital improvements, packaging and other business-development items — while Alternative A limits eligibility to past-due county obligations (Measure S, property taxes, plan and building fees) but, by the board’s amendment, adds payment of current-year state licensing fees as a prioritized eligible cost.

Ross Gordon, speaking for the Humboldt County Growers Alliance, urged the board to choose the broader approach: “I really wanna encourage the board to consider adoption of alternative b today ... the only alternative that allows these equity funds to be used for any type of business activity or other activities.” Gordon argued that limiting use only to repaying county debts would exclude many people who need capital for business development and who have remained proactively compliant.

Speakers representing growers also warned that limiting funds to back taxes can feel like using tax revenue to pay taxes, leaving proactive operators unrewarded. Craig Johnson, a grower who spoke during public comment, said: “This money is coming from tax dollars that were generated from us, the cannabis community ... we’re constantly using taxes to pay taxes.”

Staff cautioned the board that returning to a broader-service model would substantially increase administrative time. Peggy Murphy said expanded eligibility “doubles, if not triples, the amount of staff time” required to monitor contracts, receipts and technical assistance. County staff said the program previously operated with more staff when award levels were higher (earlier cycles distributed multi‑hundred‑thousand- and million‑dollar totals and the office once had two full‑time staff dedicated to the program).

Supervisor discussion focused on balancing equity to growers who have remained compliant and the county’s limited administrative capacity. Chair Bushnell said she wanted to “reward folks that have really worked hard to be compliant” and proposed Alternative A with the added state-license priority. Several supervisors, while expressing support in principle for broader business‑development uses, said staff capacity and timeliness of disbursement weighed heavily in their votes.

Action and outcome: The board adopted the staff-recommended Alternative A with the amendment to include current-year state licensing fees as an eligible and prioritized expense for applicants who are otherwise compliant. The motion passed 4-0.

What happens next: Staff will implement the board’s direction and return to the queue and contract work already under way. Peggy Murphy acknowledged there are outstanding contracting processes from prior rounds and said staff are currently processing previously queued applicants; she said the county is checking applicants’ continued eligibility before final contracting.

Why it matters: Project Trellis funds are intended to address harms from past enforcement of cannabis laws and to support entry into the regulated market. How the county defines eligible uses affects who receives money and whether the funding helps cultivate new or sustain existing lawful businesses in Humboldt County.