San Diego County Supervisors OK cannabis social equity program

In another step toward a commercial cannabis ordinance, the San Diego County Board of Supervisors Wednesday voted 3-2 in favor of a social equity program that advocates say will allow people impacted by previous criminalization efforts to participate in the regulated market.

Board Vice Chair Terra Lawson-Remer said the program will also help "people and communities impacted by the War on Drugs to receive assistance and benefits."

Lawson-Remer, Supervisor Monica Montgomery Steppe and Chairwoman Nora Vargas voted in favor of the initiative, while Supervisors Joel Anderson and Jim Desmond were opposed.

Supervisors voted after hearing a presentation by Andrew Strong, director of the county Official of Equity and Racial Justice. The item was continued from the Tuesday meeting. Strong said it was important for the Board of Supervisors to approve a social equity program before considering a commercial cannabis ordinance, so owners can prepare for licensing.

Supervisors approved direction on social equity eligibility criteria, an ordinance to implement it and setting up a nine-member group called the Cannabis Oversight Community Collaborative.

Collaborative members will report back to supervisors a yearly basis on the social equity program's performance, community feedback and grant funding. Each supervisor would appoint one member to the collaborative, while the other four members will be seated via an application process.

According to Lawson-Remer's office, program qualification depends on whether a person was arrested, jailed, deported or convicted for a cannabis- related crime in San Diego County prior to Nov. 8, 2016, and if they meet a low- income threshold of 80% of the area's median income.

Supervisors also approved a set of rules for a county-licensed cannabis business, which are:

-- a three-year window for social equity business owners to start the cannabis licensing process once it becomes available, giving them sa "leg up" in finding partners, securing capital and opening before larger, well-funded operators enter the market.

-- a ceiling of 25 licenses for cannabis storefront businesses, which could be increased in the future based upon an economic study or other analysis, but would not apply to licenses for cultivation, delivery, distribution, manufacturing and testing.

-- at least 50% of storefront retailer licenses being reserved for social equity applicants, or around 13 storefront retailer spots of the 25 allowed in the initial period.

To qualify for the program grant funding, a person must have at least a 51% equity share in a cannabis business. According to the Tuesday board agenda, the county has $350,000 in grant money for social equity applicants, received in June 2023 from the state Governor's Office of Business and Economic Development.

In January 2021, Vargas and former Supervisor Nathan Fletcher proposed a socially equitable cannabis policy as a way to eliminate the black market, and address how anti-drug policies impact low-income and minority communities.

Since that time, supervisors have approved several related policies, including cannabis industry tax rates in unincorporated areas, and a grant to help five existing facilities.

Speaking with help from the county board clerk due to a vocal cord issue, Vargas said the social equity program was a detailed plan that "is both empowering and healing," while also ensuring accountability.

Montgomery Steppe said social equity policy is a way to start rectifying the harm caused by policies associated with the U.S. government's war on drugs.

For decades, hundreds of thousands of people — disproportionately those of color — spent time behind bars for marijuana possession, Montgomery Steppe said, adding, "the very thing that took folks away from their families is now legal."

Hoever, Desmond described the policy as "quite a reach" in terms of social equity, and a misguided effort to help businesses. While some previous anti-drug policies may have been excessive, "the law was the law when that happened," and the county should instead offer educational opportunities or life skills to those needing an opportunity to improve their life, he said.

The social equity policy allows some an unfair advantage and "I don't think that's how we want to go in society," Desmond said. "The less cannabis we have, the better."

Anderson said he wasn't comfortable approving the program, as there were still holes in it, including whether the policy would allow those with a weapons-related conviction to participate and location requirements for the new advisory board members.

Lawson-Remer noted the program has the term "social equity" in it, not "social equality."

"Different people begin from different starting points," she said. "You can't fix the wrongs that have been historically inflicted." However, Lawson-Remer said the new policy can allow for a more-level playing field.

During a public comment period, some residents praised the county for its progressive outlook on cannabis, but also said the program needs more funding.

Andrea St. Julian, co-chair of San Diegans for Justice, said the program "is so underfunded that it can accomplish nothing," and more help is needed from local governments.

St. Julian suggested that a percentage of revenue from cannabis taxes should help pay for the program, with approval from voters. Others criticized the program as sending the wrong message, especially to younger people.

San Diego resident Terri-Ann Skelly said more marijuana businesses will do nothing to improve the quality of life for residents.

"This is a good time for the county to hit the pause button in spending any more money or staff time on this idea," she said. "Only pot profiteers have benefited from marijuana businesses in our county -- youth, families, teachers and law enforcement have not."

One man, who said he managed Mother Earths Healing Cooperative in El Cajon, asked if the social equity program would help cannabis businesses harmed by previous county policy. Chad La Chance said Mother Earths was the first licensed dispensary in the county and a small family business that had to close even though it was operated "by the letter of the law."

La Chance added that he would love to reclaim his place in the industry.

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