Long Beach Municipal Code Div. XI Equity Program

Footnotes:

--- (22) ---

Editor's note— ORD-22-0015 § 4, adopted May 24, 2022, amended Div. XI in its entirety to read as herein set out. Former Div. XI, §§ 5.92.1610—5.92.1650 was entitled "Equity Assistance Program," and derived from: ORD-21-0023 §§ 7—10, 14, of 2021; and ORD-18-0015 § 6(Exh. F), of 2018.

A. To be eligible for the Equity Program as an equity employee, an individual shall satisfy the following criteria:

1. Be a natural person; and

2. In the last year, have had an annual family income at or below eighty percent (80%) Los Angeles - Long Beach - Glendale (Los Angeles County) Area Median Income (AMI) adjusted for family size, and a net worth below $250,000; and

3. The individual satisfies at least one of the following criteria:

a. Has lived in a Long Beach census tract for a minimum of three (3) years where at least fifty-one percent (51%) of current residents have a household income at or below eighty percent (80%) of the Los Angeles County Area Median Income; or

b. Was arrested or convicted for a crime relating to the sale, possession, use, or cultivation of cannabis in the City of Long Beach prior to November 8, 2016 that could have been prosecuted as a misdemeanor or citation under current California law; or

c. Is a Long Beach resident currently receiving unemployment benefits.

(ORD-22-0015 § 4, 2022)

A. To be eligible for the Equity Program as an equity applicant, an individual shall satisfy the following criteria:

1. Be a natural person; and

2. In the last year, have had an annual family income at or below eighty percent (80%) Los Angeles - Long Beach - Glendale (Los Angeles County) Area Median Income (AMI) adjusted for family size, and a net worth below $250,000; and

3. Has lived in a Long Beach census tract for a minimum of five (5) years, either consecutively or in total, where at least fifty-one percent (51%) of current residents have a household income at or below eighty percent (80%) of the Los Angeles County Area Median Income; and

4. Meets at least one of the following criteria:

a. During the period 1971—2016, was arrested for, convicted of, or adjudged to be a ward of the juvenile court for any crime under the laws of California or any other jurisdiction relating to the sale, possession, use, manufacture, or cultivation of cannabis; or

b. Has a parent, sibling, or child who, during the period of 1971—2016, was arrested for, convicted of, or adjudged to be a ward of the juvenile court for any crime under the laws of California or any other jurisdiction relating to the sale, possession, use, manufacture, or cultivation of cannabis.

(ORD-22-0015 § 4, 2022)

To be eligible for the Equity Program as an Equity Business, majority ownership of the business must be held by equity applicant(s). If the cannabis business has one equity applicant listed as an owner, a minimum of fifty-one percent (51%) ownership in the cannabis business must be held by the equity applicant. If the cannabis business will have multiple equity applicants listed as owners of the cannabis business, any one (1) of the equity applicants must hold majority ownership interest in the cannabis business.

(ORD-22-0015 § 4, 2022)

A. Any person seeking to be qualified as a Verified Equity Applicant or Verified Equity Employee shall submit a written application to the City, signed under penalty of perjury, using the form approved by the City for that purpose and in the manner required by the Director of Economic Development. All applications shall contain, at a minimum, the following information and documents:

1. Applicant Information.

a. The legal name of the applicant.

b. The applicant's mailing address, e-mail address, and telephone number.

2. Proof of income.

a. All income documents must list the first and last name of the equity applicant and be effective within the last year.

b. A minimum of last year's federal tax return and at least one (1) of the following approved documents listed below shall be considered acceptable proof of residency:

(i) Wage and tax statement (W-2, 1099, or other Federal income reporting document);

(ii) Two (2) months of most recent pay stubs; or

(iii) Proof of current eligibility for General Relief (GR), CalFresh (Food Stamps), Medical/CalWORKs, Supplemental Security Income (SSI), or Social Security Disability (SSDI).

3. Proof of Residency.

a. A minimum of two (2) of the supporting documents listed below, evidencing a minimum of five (5) years of residency, whether consecutive or in total, shall be considered acceptable proof of residency. All residency documents must list the first and last name of the equity applicant and the Long Beach residence address in a qualifying Long Beach census tract pursuant to Section 5.92.1620.A.3:

(i) California Driver's record or permanent Driver's License or AB 60 Driver's License; or

(ii) California identification card record; or

(iii) Property tax billing and payments from the LA County Assessor; or

(iv) Verified copies of State or Federal income tax returns where a Long Beach address within a qualifying Long Beach census tracts pursuant to Section 5.92.1620.A.3 is listed as a primary address; or

(v) School records; or

(vi) Medical records; or

(vii) Banking records; or

(viii) Long Beach Housing Authority records; or

(ix) Utility, cable, or internet company billing and payment covering any month in each of the five (5) years.

4. Proof of Cannabis Criminalization.

a. Proof of cannabis arrest or conviction should be demonstrated through court documents, probation documents, Department of Corrections or Federal Bureau of Prisons documentation. Documentation needs to include the following:

(i) Date of the offense or arrest.

(ii) Charges filed.

(iii) Name of defendant.

(iv) Exact location of offense or arrest that occurred in Long Beach, CA.

(ORD-22-0015 § 4, 2022)

A. Upon review of an application, if an application is determined to be incomplete, the City shall provide notice to the applicant, who shall have ninety (90) calendar days to correct all deficiencies in the application.

B. If the applicant fails to correct said deficiencies within the ninety (90) day period, the application shall be deemed abandoned, void, and of no further force and effect. The applicant may reapply at any time following an abandoned application.

C. The Director of Economic Development may extend the deadline upon showing of good cause by the applicant for the inability to provide all required information by the deadline, if a written request for an extension is received no later than ten (10) calendar days prior to the deadline. For purposes of this subsection, the term "good cause" shall mean the applicant's failure to complete the application process occurred due to circumstances outside of the applicant's control.

(ORD-22-0015 § 4, 2022)

Upon review of an application, if an application is determined to not meet the criteria to be verified as an equity applicant or equity employee, the City shall have the right to reject said application. All rejections are final and may not be appealed. An equity applicant may reapply at any time after having an application rejected.

(ORD-22-0015 § 4, 2022)

A sole equity applicant that intends to apply for an Adult-Use Cannabis Business Permit as an equity business, shall be eligible to receive direct technical assistance prior to the application process to acquire the knowledge and/or skills necessary in order to gain entry to, and to successfully operate in, the regulated cannabis marketplace. Direct technical assistance includes:

A. One-on-one consulting and training, including direct interactions in group settings, to provide equity applicants and licensees the technical knowledge and expertise necessary to facilitate business ownership and employment in the cannabis industry.

B. Small business support services, professional mentorship services, training and education regarding state cannabis licensing and regulatory requirements, manufacturing assistance, financial management, and business resilience such as emergency preparedness.

(ORD-22-0015 § 4, 2022)

A sole equity applicant or group of equity applicants applying for an Adult-Use Cannabis Business Permit as an equity business, shall be eligible to receive the following assistance during the application process: expedited Adult-Use Cannabis Business Permit application review; Adult-Use Cannabis Business Permit application and compliance assistance; cultivation business license tax deferrals during the first year; expedited building plan check review; waivers of City permitting fees; and direct grants as provided by the State of California.

(ORD-22-0015 § 4, 2022)

Assistance as part of the Equity Program will only be provided to one (1) verified equity applicant per household. Assistance will not be provided to multiple equity applicants living within the same household and/or the equity applicant is listed as a dependent on another equity applicants tax filings.

(ORD-22-0015 § 4, 2022)

Equity Businesses are prohibited from transferring majority ownership interest to a non-equity applicant, for ten years after the issuance of the Adult-Use Cannabis Business License for that cannabis business. Exceptions may be granted by the City Manager, or their designee, for an extenuating circumstance preventing an equity applicant(s) from continuing to hold ownership in the Cannabis Business.

(ORD-22-0015 § 4, 2022)

Adult-Use Cannabis Businesses that do not qualify for the Equity Program shall comply with the following requirements:

A. Employment.

1. Adult-Use Cannabis Businesses that do not qualify for the Equity Program shall employ equity employees for a minimum of forty percent (40%) of total annual work hours performed at the business. Upon a showing of good cause by an Adult-Use Cannabis Business, the City Manager may waive the employment requirement.

2. Compliance. To ensure compliance with this requirement, Adult-Use Cannabis Businesses shall submit certified payroll records to the City Manager at such frequency as determined by the City Manager. Adult-Use Cannabis Businesses that fail to meet this requirement may be subject to penalties pursuant to this Chapter, including but not limited to, suspension or revocation of the Adult-Use Cannabis Business Permit pursuant to Section 5.92.1540. To avoid penalties for noncompliance, a business may demonstrate that it utilized its best efforts to hire and employ individuals that meet the criteria in Section 5.92.1620.A by detailing all efforts made and affixing documents to support such efforts.

B. Support for equity businesses. Adult-Use Cannabis Business shall submit a Community Reinvestment and Small Business Incubation Plan to the City describing how they intend to support equity businesses, adjacent neighborhoods, and communities within the eligible social equity program census tracts. Support for equity businesses may include, but shall not be limited to, business plan guidance at the time of application, business operations consulting, and industry specific technical assistance, shelf space for cannabis goods cultivated or manufactured by equity businesses, or any other form of support by an Adult-Use Cannabis Business consistent with the intent and spirit of this Division.

C. Labor peace agreement. Any Adult-Use Cannabis Business with two (2) or more employees (as defined by California Business and Professions Code 26051.5(a)(5)) shall provide a statement at the time of application that the applicant will enter into, or demonstrate that it has already entered into, and abide by the terms of a labor peace agreement.

(ORD-22-0015 § 4, 2022)

The City Manager is authorized to make reasonable rules, policies, and procedures consistent with the intent and spirit of this Division to develop and implement an administrative program for this Equity Program. Regulations promulgated by the City Manager become effective upon date of publication, unless specified otherwise.

(ORD-22-0015 § 4, 2022)