Cannabis Opportunity Reinvestment & Equity (CORE) Program Presented by Joe Devlin Chief, Office of Cannabis Policy and Enforcement

Item No. Recommendation: 1) Pass a Motion by two-thirds vote suspending Council Rules of Procedure chapter 15, section B (4), requiring the Budget and Audit Committee to review fees prior to bringing them forward to City Council; 2) conduct a public hearing and upon conclusion and; 3) pass a Resolution: a) authorizing the implementation of the Cannabis Opportunity Reinvestment and Equity (CORE) Program, and b) adopting a zero-dollar fee for cannabis business permits for eligible participants of the Cannabis Opportunity Reinvestment and Equity (CORE) program.

What is the CORE Program? Program designed to aid individuals and communities who are facing barriers due to the historical disparate enforcement of cannabis crimes 5 Classifications: 1 , 2 – for individuals 3, 4, 5 for businesses Two-year pilot program to be facilitated by a 3rd party selected through RFP Process Program Cost - $1M from General Fund

Who is Eligible to Apply for the CORE Program? Applicant Classifications: 1 – A resident of the City of Sacramento who resides in a low-income household and was either: a) arrested or convicted for a cannabis related crime in Sacramento between the years 1980 and 2011; or is b) an immediate family member of an individual described in subsection a of Type 1. 2 – A resident of the City of Sacramento who has lived for at least five (5) consecutive years, between the years of 1980 and 2011, in a low-income household in the following zip codes: 95811, 95815, 95817, 95820, 95823, 95824, 95826, 95828, and 95818.

Applicant Classifications (cont.): 3 – A cannabis business with not less than 51% ownership by individuals meeting Classifications 1 or 2 criteria. 4 – A cannabis business that is a CORE Program Incubator 5 – A Cannabis Social Enterprise with not less than 51% ownership by individuals meeting Classifications 1 or 2 criteria.

Example of Benefits: Zero-dollar permit fee (fee waiver) for Business Operating Permit Priority processing of BOP Access to the CORE Business Support Center Access to a Host/Incubator business Shared/hosted space to operate business Satisfaction of the Neighborhood Responsibility Plan requirement Priority position for storefront dispensary permit lotteries (procedure to be adopted by City Council)

Next Steps: Release of RFP (30 days) for program facilitator Selection of vendor Award of Contract at Council Meeting CORE Program expected to be up and running by Fall 2018