Here’s why Sacramento may allow 10 new marijuana shops to open in the city
The Sacramento City Council will Tuesday consider allowing 10 new storefront pot dispensaries to open in the city in an effort to address longstanding equity issues in the retail pot market.
None of the city’s current 30 dispensaries are owned by Black men or women – a population disproportionately arrested during the War on Drugs, Malaki Amen, executive director of the California Urban Partnership, has been telling the council for years.
When recreational pot became legal in marijuana, the city allowed the dispensaries that were already selling medical pot to start selling recreational pot as well. While city manufacturing, delivery, distribution and cultivation permits have been available, no new businesses have been able to apply for storefront dispensary permits, which are the most desirable, a city staff report said.
If the council approves the plan Tuesday, the city plans to hold a lottery Oct. 12 to select the owners for five new permits. The city will hold another lottery in 2021 to select the owners of the next five permits. The winners of the lottery will need to open shops within three years or they will lose their permit and another lottery will be held, said Davina Smith, the city cannabis manager.
To qualify for the lottery, city residents must meet certain requirements, such as earning a low income, living in certain zip codes most impacted by the War on Drugs, or having a prior arrest for a cannabis-related charge.
If the council approves the item Tuesday, the city will start collecting applications for the lottery and holding informational meetings in the coming days, Smith said.
People would not have to be graduates of the Cannabis Opportunity Reinvestment and Equity (CORE) program in order to apply for the lottery, Smith said. That program has about 159 graduates, she said.
People who meet the requirements to qualify for the lottery, or who graduate the CORE program, are eligible to have thousands of dollars in city fees waived if they open a cannabis business.
The language of the ordinance amendment does not specify where in the city the new shops would be able to open.
The meeting comes about seven months after the council discussed adding 10 new shops – a compromise between some council members who wanted to remove the cap altogether and some who wanted to allow three new shops.
Despite the delay, it appears the item is now being fast-tracked – skipping consideration by the council’s Law and Legislation Committee.
Last year, The Sacramento Bee reported that one group of business partners had been able to gain ownership of a third of the city’s dispensaries, despite a city code intended to prevent that. The code has since been strengthened.
The council meeting is scheduled for 5 p.m. Tuesday and will be livestreamed on the city’s website.
This story was originally published August 29, 2020 at 12:50 PM.
