Daly City staff detail cannabis equity assessment, propose expungement clinics and incubator supports

At its Dec. 12 meeting, the Daly City Small Business Commission heard a presentation from city staff on a GoBiz-funded assessment of whether the city should adopt a cannabis equity program. Staff said the Governor's Office of Business and Economic Development awarded the grant in February 2024 and the city contracted consultant SEI to complete the study.

The assessment, staff said, is intended to identify communities most affected by historic cannabis enforcement and to propose program elements that would reduce barriers to entry in the regulated cannabis market. "For decades, communities of color have shouldered the heaviest burden of cannabis enforcement," staff said, describing impacts on employment, education and economic stability.

Staff presented demographic and enforcement data for Daly City, noting Asians make up about 60% of the population, Latinos just over 20% and Black or African American residents less than 3%. The presentation reported roughly 200 cannabis-related arrests in Daly City, peaking around 2013–2015, and stated that Black residents comprised about 17% of those arrests—roughly six times their share of the population—while Latino residents experienced arrest rates about twice their population share.

To address those disparities, staff outlined a menu of possible supports that could be included in a local equity program: direct financial assistance, technical-assistance and business-acumen training, streamlining permitting and plan review, and incubator or shared-use facilities. Staff highlighted expungement clinics as a near-term, low-cost option. "It's very easy to expunge people's cannabis arrests these days," staff said, adding that expungement often "just takes a hundred dollars and a lawyer," and that Phase 2 funds could support legal clinics.

Staff also cautioned that eligibility rules will require careful legal review. They noted residency requirements and exclusions for serious interstate trafficking charges could raise legal complications and said the program must balance being narrowly targeted with remaining accessible to those most affected.

Commissioners asked how the program could prioritize Daly City residents and people previously arrested. Commissioner Bautista suggested operators or future businesses might provide employment pathways or direct support to affected families; staff said program elements can include employment-to-ownership pathways and employer commitments depending on the program design and available Phase 2 funding.

Chair Amaril Radwan asked whether lessons from San Francisco and other nearby jurisdictions were incorporated; staff said the assessment considered regional examples and that other cities (San Francisco, Oakland, San Jose) provide lessons, though resource levels and capacity vary. Radwan also asked about federal legal risks; staff characterized industry actors as cautious and said interstate transport and national market changes remain uncertain.

Staff said quantitative data collection is complete, stakeholder interviews are ongoing, and the city aims to finalize the equity assessment report and draft an equity ordinance by Q1 2025. Any Phase 2 funding would expand options for direct assistance and program implementation.

The commission did not take formal action on the program during the meeting; staff asked commissioners to complete the community survey and offered to arrange stakeholder interviews for commissioners who wish to participate.