Committee accepts $1.3 million cannabis equity grant after hours of applicants— testimony

The Budget and Finance Committee on Jan. 29 authorized the Office of Cannabis to accept a $1,300,000 state grant intended for local equity applicants and heard extended public testimony urging that funds be distributed directly to applicants rather than routed through city services.

Deputy Director Eugene Hillsman said the funds come from the California Bureau of Cannabis Control under Senate Bill 1294 and are intended to support individuals ‘‘negatively impacted by the war on drugs’’ by creating opportunities to own or work in cannabis businesses. Hillsman said the Office of Cannabis held listening sessions in 2019 to design the distribution and will comply with state reporting requirements.

The nut graf: equity applicants and advocates told supervisors the current allocation plan risks leaving eligible San Francisco applicants without the capital and real estate they need to open. Many requested direct grants, lease assistance, an application expediter and an office dedicated to equity services.

During public comment, verified equity applicants described the financial and procedural barriers they face. Claudel Douglas, identifying himself as a verified equity applicant, asked that the $1.3 million "be given directly to the equity applicants." Reese Benton urged urgency and described personal hardship: "It's heartbreaking," she said, recounting family impacts from the drug war and limited resources to open a business. Other applicants called the existing program slow and bureaucratic and asked for explicit allocations for direct grants, an equity office and permit expediting.

Advocates pressed Supervisors for concrete spending amounts; one speaker urged $750 per applicant in direct funding and proposed line items for office space, events and an expediter. Terrence Allen, former chair of the San Francisco Cannabis Legalization Task Force, told the committee it can take about $1.5 million to open a single cannabis storefront in the city and urged supervisors to treat the $1.3 million as a first step toward more substantial support.

Supervisor Preston asked to be added as a co-sponsor of the legislation. Chair Sandra Lee Feuer said the Office of the Controller produced a report with recommendations and that she had authored a resolution to create an oversight committee to review progress and help ensure action. The committee moved the item to the full Board with a positive recommendation.

What—s next: the Board will consider the appropriation and distribution plan; Chair Feuer said the Board will hold a follow-up hearing on the controller—s recommendations and broader oversight of the equity program.

Quotes (selected): "I'm requesting that the ... $1,300,000 in equity funds be given directly to the equity applicants," said Claudel Douglas, a verified equity applicant. "It's heartbreaking," said Reese Benton, an equity applicant describing personal and family impacts. "San Francisco's equity program was developed to support individuals negatively impacted by the war on drugs," said Eugene Hillsman, Deputy Director, Office of Cannabis.

Ending: The committee forwarded the grant to the Board with a positive recommendation and signaled additional oversight and a follow-up hearing to consider the controller—s recommendations and distribution details.