Los Angeles
City Council
Agenda Item 10
(10) 240385 CONSIDERATION OF MOTION (PRICE HARRISDAWSON), COMMUNICATION FROM THE DEPARTMENT OF CANNABIS REGULATION (DCR) and RESOLUTION relative to accepting a grant in the amount of $3,000,000 from the State of California to be used to assist the City’s commercial cannabis Social Equity Program and Social Equity applicants and licensees. A. MOTION (PRICE – HARRISDAWSON) Wednesday - May 8, 2024 - PAGE 11 Recommendations for Council action, SUBJECT TO THE (10) 240385 CONSIDERATION OF MOTION (PRICE HARRISDAWSON), COMMUNICATION FROM THE DEPARTMENT OF CANNABIS REGULATION (DCR) and RESOLUTION relative to accepting a grant in the amount of $3,000,000 from the State of California to be used to assist the City’s commercial cannabis Social Equity Program and Social Equity applicants and licensees. A. MOTION (PRICE – HARRISDAWSON) Recommendations for Council action, SUBJECT TO THE APPROVAL OF THE MAYOR: 1. AUTHORIZE the DCR to accept a grant in the amount of $3,000,000 from the State of California to be used to assist the City’s commercial cannabis Social Equity Program and Social Equity applicants and licensees; to deposit these funds into a new Account in Fund No. 60E13, entitled 2024 Cannabis Equity Grant (CEG); and, to execute the standard agreement with the Governor’s Office of Business and Economic Development for the period of April 1,2024 through October 31, 2025, including any extensions or amendments thereof, subject to the approval of the City Attorney as to form and legality. 2. ADOPT the accompanying RESOLUTION, attached to the Motion, as required by the granting agency. B. COMMUNICATION FROM THE DCR Recommendations from Council action, SUBJECT TO THE APPROVAL OF THE MAYOR: 1. AUTHORIZE the Executive Director, DCR, or designee, to accept the 2024 Cannabis Equity Act Grant in the amount of $3,000,000 (CEG2024574) from the State of California Governor’s Office of Business and Economic Development (GOBiz). 2. ADOPT the accompanying Grant RESOLUTION, included as Attachment 1 of the DCR report dated April 29, 2024, attached to the Council file, authorizing the Executive Director, DCR, or designee, to execute on behalf of the City of Los Angeles the Grant Agreement, included as Attachment 2 of said DCR report, for CEG2024574 for the period of April 1, 2024 through October 31, 2025, including any extensions or amendments thereof. 3. AUTHORIZE the Executive Director, DCR, or designee, to execute, on behalf of the City of Los Angeles, all other CEG Wednesday - May 8, 2024 - PAGE 12 2024574 grant documents necessary relative to the grant Attachment 1 of the DCR report dated April 29, 2024, attached to the Council file, authorizing the Executive Director, DCR, or designee, to execute on behalf of the City of Los Angeles the Grant Agreement, included as Attachment 2 of said DCR report, for CEG2024574 for the period of April 1, 2024 through October 31, 2025, including any extensions or amendments thereof. 3. AUTHORIZE the Executive Director, DCR, or designee, to execute, on behalf of the City of Los Angeles, all other CEG 2024574 grant documents necessary relative to the grant award. 4. AUTHORIZE the Controller to accept, deposit, and set up grant receivables up to $3,000,000 of CEG2024574 grant funds in the California Local Equity Grant Program Fund No. 64F/13. 5. AUTHORIZE the Controller to establish and appropriate up to $3,000,000 within Fund 64F/13 California Local Equity Grant Program Fund, Account No. TBD, entitled 2024 Cannabis Equity Grant for the receipt and disbursement of grant funds. 6. AUTHORIZE the DCR to process a reimbursable loan from the DCR Special Revenue Trust Fund No. 60E to the California Local Equity Grant Program Fund 64F in the amount of $750,000 for the 25 percent frontfunding required by CEG2024574, to be repaid when grant funds are made available. 7. AUTHORIZE the Executive Director, DCR, or designee, to expend said funds from the accounts listed above for the purposes set forth in the DCR report and consistent with the Grant Agreement. 8. AUTHORIZE the Executive Director, DCR, or designee, to amend Regulation No. 9. Fee Deferral and Fee Waiver Program within the Rules and Regulations for Cannabis Procedures consistent with Attachment 3 of said DCR report dated April 29, 2024. 9. AUTHORIZE the DCR to prepare Controller instructions and/or make any corrections or clarifications to the above instructions that may be required, subject to the approval of the City Administrative Officer, in order to effectuate the intent of City Council; and, request the Controller to implement these instructions. Wednesday - May 8, 2024 - PAGE 13