California Code
CHAPTER 23 - The California Cannabis Equity Act
Section 26249.

26249. (a) Notwithstanding Sections 26012 and 26180:

(1) On or before January 1, 2022, the department shall develop and implement a program to provide waivers for application fees, licensing fees, and renewal fees required by this division.

(2) On or before January 1, 2023, the department shall develop and implement a program to provide deferrals for application fees, licensing fees, and renewal fees required by this division.

(b) (1) At least 60 percent of the total dollar amount of deferrals of fees pursuant to the program developed and implemented by the department pursuant to subdivision (a) shall be allocated to the deferral of fees for equity applicants and licensees.

(2) At least 60 percent of the total dollar amount of waivers of fees pursuant to the program developed and implemented by the department pursuant to subdivision (a) shall be allocated to the waiver of fees for equity applicants and licensees.

(c) For purposes of this section, “equity applicants and licensees” means applicants and licensees that demonstrate all of the following:

(1) (A) For applicants and licensees in local jurisdictions with local equity programs, that they are locally verified equity applicants and licensees; or

(B) For applicants and licensees in local jurisdictions without local equity programs, that they are local applicants and licensees.

(2) That they, either individually or in combination with other persons who qualify as equity applicants or licensees pursuant to this section, own no less than 50 percent of the business that is in the process of being licensed or is licensed.

(3) That they satisfy one of the following:

(A) They have previously been convicted of an offense related to the sale, possession, use, manufacture, or cultivation of cannabis, under past criminal justice policies implementing cannabis prohibition.

(B) They have previously been arrested for an offense related to the sale, possession, use, manufacture, or cultivation of cannabis, under past criminal justice policies implementing cannabis prohibition.

(C) Residence in a household with a household income less than or equal to 60 percent of the area median income for the applicable local jurisdiction.

(D) Residence in an area with a population disproportionately impacted by past criminal justice policies implementing cannabis prohibition.

(4) The eligibility for those that qualify pursuant to the criteria listed under subparagraphs (A) to (D), inclusive, of paragraph (3) may be further refined by the department through regulations, including, but not limited to, regulations regarding the following:

(A) Criteria regarding the license or licenses an applicant or licensee may seek or hold.

(B) Criteria regarding the time period or length of time in which an applicant or licensee resided in a low-income household for purposes of subparagraph (C) of paragraph (3), or in an area with a population disproportionately impacted by past criminal justice policies implementing cannabis prohibition for purposes of subparagraph (D) of paragraph (3).

(d)  The department may adopt regulations, including emergency regulations to implement this section. The adoption, amendment, repeal, or readoption of a regulation authorized by this section is deemed to address an emergency, for purposes of Sections 11346.1 and 11349.6 of the Government Code, and the department is hereby exempted from the requirements of subdivision (b) of Section 11346.1 of the Government Code.

(e) The operation of this section is contingent upon an appropriation in the annual Budget Act or another statute for purposes of this section.

(Amended by Stats. 2021, Ch. 260, Sec. 2. (SB 166) Effective September 23, 2021.)