City Council

(49)\n26-0233\nGOVERNMENT OPERATIONS COMMITTEE REPORT and\nRESOLUTION relative to the acceptance and funding requirements of\nthe 2026 Cannabis Equity Act Grant from the State of California\nGovernor’s Office of Business and Economic Development (GO-Biz).\nRecommendations for Council action, SUBJECT TO THE APPROVAL\nOF THE MAYOR:\n1. AUTHORIZE the Executive Director, Department of Cannabis\nRegulation (DCR), or designee, to:\na. Accept the 2026 Cannabis Equity Act Grant in the amount\nof $3,500,000 (CEG-2026-687) from the GO-Biz.\nb. Execute, on behalf of the City of Los Angeles, all other\nCEG-2026-687 grant documents necessary in connection\nwith the grant award.\nc. Expend said funds from the accounts listed above for the\npurposes set forth in said DCR report and consistent with\nthe Grant Agreement.\n2. ADOPT the accompanying Grant RESOLUTION, included as\nAttachment 1 of the DCR report dated February 17, 2026,\nattached to the Council file, authorizing the Executive Director,\nDCR, or designee, to execute the Grant Agreement on behalf of\nthe City of Los Angeles, included as Attachment 2 of said DCR\nreport, for CEG-2026-687 for the period of April 1, 2026 through\nOctober 31, 2027, including any extensions or amendments\nthereof.\n3. AUTHORIZE the Controller to:\na. Accept, deposit, and set up grant receivables up to\n$3,500,000 of CEG2026-687 grant funds in the California\nLocal Equity Grant Program Fund No. 64F/13.\nb. Establish and appropriate up to $3,500,000 within Fund\nNo. 64F/13, California Local Equity Grant Program Fund,\nAccount No. TBD entitled "2026 Cannabis Equity Grant",\nfor the receipt and disbursement of grant funds.\nc. Set up an account entitled “CEG 2026 Receivables” within\nthe DCR Special Revenue Trust Fund No. 60E for the 25\npercent front-funding required by CEG-2026-687, to be\nrepaid when grant funds are made available.\n4. AUTHORIZE the DCR to prepare Controller instructions and/or\nmake any corrections or clarifications to the above instructions\nthat may be required, subject to the approval of the City\nAdministrative Officer, in order to effectuate the intent of City\nCouncil; and, REQUEST the Controller to implement these\ninstructions.\nFiscal Impact Statement: The DCR reports that there is no General\nFund impact because the non-grant funded personnel costs\nassociated with administering the DCR’s Social Equity Program and\nsupporting Social Equity Applicants and Licensees are utilized toward\nthe local matching fund requirement.