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Equity Dispensary Ordinance

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To promote business ownership opportunities for equity applicants, the City Council approved an ordinance amendment on May 10, 2022, to allow eight (8) equity dispensaries in the City. 

This would bring the total number of dispensaries in the city to 40. 





Timeline 

  •  March 16, 2021 – The City Council requested the City Manager to conduct a feasibility analysis on the addition of up to 8 new dispensary licenses exclusively for Equity Applicants in the Program.
  • October 1, 2021 – The City Manager released a memorandum on the Equity Dispensary Feasibility Analysis which included a summary of community feedback and recommendations to expand the “Green Zone”, place a cap on licenses, and utilize a hybrid application process (merit-based review plus lottery).
  • October 12, 2021 – The Office of Cannabis Oversight presented the Equity Dispensary feasibility study to the City Council, who approved a motion directing staff to conduct a feasibility analysis on a 1,500-foot buffer for dispensaries, and prepare an ordinance to allow up to 8 new dispensary licenses be issued to equity applicants, expand the Green Zone for dispensaries, and focus a merit-based application process (no lottery).
  • April 27, 2022 – The City Manager released a memorandum providing an update on 1) the feasibility analysis for a 1,500-foot buffer for dispensaries, 2) grant funding for Cannabis City Staff, and 3) community engagement on the Equity Dispensary RFP criteria.
  • May 10, 2022 – The Office of Cannabis Oversight presented the Equity Dispensary Ordinance and Resolution to the City Council for adoption to authorize the City Manager to establish a Request for Proposals (RFP) for dispensary licenses for the Program. The City Council passed a motion requesting staff to return toto the following City Council meeting, with changes to the ordinance to 1) only allow Equity Applicants verified on or before Tuesday, May 10, 2022 to participate in the RFP, 2) require Equity Applicants to provide a 10-year business plan, 3) restrict these licenses from being sold to a non-equity partner within the first ten (10) years of the Equity Applicant(s) holding the license, 4) give preference to Equity Applicants who have participated in the City’s prior cannabis dispensary lottery processes, and 5) review the RFP proposals without the names of the Equity Applicants.
  • May 17, 2022 – The Office of Cannabis Oversight presented the Equity Dispensary Ordinance and Resolution with the amendments to the Equity Business ownership requirements and Equity Dispensary RFP Guidelines, as requested by the City Council. The City Council approved the recommendation to amend the proposed Equity Business ownership requirements to prohibit Equity Businesses from transferring more than 51 percent ownership interest to a non-equity individual for ten years from the date the Equity Business submits a cannabis business license application to the City, 2) amend the Equity Dispensary RFP Guidelines to only allow equity applicants who were verified on or before May 10, 2022, to submit a proposal. Equity applicants who received their verification after May 10, 2022, are not eligible to participate in the RFP process, and 3) amend the Equity Dispensary RFP Guidelines to add a provision to give priority to equity applicants who were selected in a previous lottery on September 10, 2010 and/or September 28, 2017. In order to be eligible to receive additional points in the RFP process, an Equity Applicant must have received their verification letter on or before May 10, 2022, and be listed on the original business license application(s) as an owner/managing member.
  • May 24, 2022 – Upon staff’s recommendation, the City Council adopted Equity Dispensary Ordinance and Resolution.
  • August 24, 2022 – The Cannabis Equity Dispensary Request for Proposals (RFP) was released through the City's procurement portal Long Beach Buys
  • September 7, 2022 – The Cannabis Map was updated to include the expanded buffer zones for dispensaries. The former Proposed Cannabis Map for Equity Dispensaries was strictly for educational purposes and is no longer available. 
  • June 1, 2023 -  The Purchasing Division has posted the Notice of Intent to Award (NOI) via Long Beach Buys for the Cannabis Equity Dispensary RFP (No. CM-22-125) to select eight equity applicants to apply for a cannabis equity dispensary license. 
  • September 21, 2023 - The Purchasing Division has provided an update regarding the Protest Period, the final phase of the RFP process that automatically commenced once the NOI was posted via LB Buys, the City’s online procurement portal.
  • September 3, 2024 - The Purchasing Division has completed the protest response period requirements and completed the Cannabis Equity Dispensary Request for Proposal (RFP) (No. CM-22-125) process, utilized to select eight equity applicants to apply for a cannabis equity dispensary business license.

More Information

 
  • What are dispensaries?

    Dispensaries are traditional retail storefronts that sell cannabis to customers. Dispensaries in Long Beach also have the option to perform delivery to customers.

    See LBMC Chapter 5.92 for more information and requirements on dispensaries in Long Beach.

  • How does adding dispensaries impact equity?

    Dispensaries in Long Beach are the most profitable business type, with lower barriers to entry than other cannabis businesses, such as cultivation and manufacturing. 

    At the time the adult-use cannabis ordinance was passed, the maximum number of dispensaries in the City was capped at 32, with no possible path to licensure for equity applicants. All dispensaries operating in the City today are non-equity applicants. 

    By allowing equity applicants to obtain dispensary licenses, it affords them the same opportuity that non-equity applicants were given, and helps to level the playing field in the cannabis industry in Long Beach.