Vista approves cannabis equity program

VISTA — A cannabis equity program is moving forward in Vista to help low-income residents and those who have been the target of past marijuana laws to get their foot in the door of the local industry. 

The Vista City Council approved the program in a 3-1 vote on Tuesday, with Mayor John Franklin opposed and Councilmember Joe Green absent.

Now that the program’s criteria and qualifications have been decided, the city will create a program application, pursue ordinance changes and licensing procedures, and apply for funding to launch the program. 

Equity applicants must have a residency connection to Vista by having lived, worked or attended school in the city for at least five years. They must also either make 80% or less of the area median income (AMI) or have been impacted by a past cannabis-related conviction or arrest between 1971 and 2016 (intended to cover the period from the start of the War on Drugs to the passage of Prop 64).

Program benefits for participants include fee waivers, application assistance and priority processing, provisional approval when needed, connection to record expungement services, and staff support, including quarterly check-ins for the first three years.

Other benefits could include direct grants, technical assistance, legal assistance, workforce or business development training, and regulatory compliance training, depending on need and available funding.

“The approval of this resolution tonight will allow us to implement a statewide program and set aside opportunities for people who have lived experience, or have been impacted by historic cannabis laws, to engage in our local cannabis market,” said Councilmember Katie Melendez

The city has been working toward a cannabis equity program since last year, approving the use of $75,000 in state funding to complete a cannabis equity study to measure the impacts of past cannabis enforcement. 

This study, completed by SCI Consultants and presented in February, found that Black residents made up a disproportionate amount of cannabis-related arrests in Vista compared to other racial or ethnic groups.

The program marks the latest step in Vista’s embrace of the cannabis market. Under the Measure Z initiative passed in 2018, 11 cannabis dispensaries were permitted to operate in the city, followed by recreational use in 2021. 

The city brought in nearly $7 million in cannabis tax revenue last year. 

Program details

In addition to living, working or attending school in the city, individuals could also meet the residency qualification if they lost housing in Vista through eviction, foreclosure, or subsidy cancellation anytime after 1994 or if they were placed in the foster care system in San Diego County between 1971 and 2016. 

The Vista Attorney’s Office did note that other cannabis equity programs have faced legal challenges for including a residency requirement, arguing that it violates the Dormant Commerce Clause. However, there have not been any rulings that prevent the city of Vista from including it at this time.

“No court has ruled on this issue that is binding for the City of Vista. These cases are still being litigated, so it is difficult to say what the outcome will be,” said Assistant City Attorney Amanda Guy.

The conviction criteria would apply to individuals or immediate family members of individuals who have had a cannabis arrest or conviction related to the sale, possession, use, manufacture, cultivation or use of cannabis between 1971 and 2016.

Franklin said he did not support accepting applicants convicted of cannabis-related felonies, claiming that this could include violent drug trafficking. 

“I can’t see the wisdom in rewarding somebody for felonious activity,” he said. 

City staff noted that it would have to be a conviction that is eligible for expungement. Other council members added that many of those offenses would not be felonies today. 

“What we’re saying is that from 1971 to 2016, the United States was wrong about cannabis. Felony charges have resulted in people being less likely to obtain housing and other jobs,” Melendez said. 

Under the program, Vista will also set aside 25% of its cannabis business licenses for equity applicants. 

Several residents commented publicly in favor of the program on Tuesday and applauded the city for pursuing it.

“We are all very proud of Vista for your progressive stance, and I can’t tell you how refreshing it is,” said Terry Best, vice chair of the San Diego chapter of Americans for Safe Access. 

Others expressed concerns about the use of cannabis itself and about increasing cannabis businesses in Vista.

“I question that Vista seems to be poised to give away taxpayers’ money to enable more marijuana businesses in our city under the guise of the social equity cannabis program,” said resident Katrina Preece. 

City officials assured residents that the program would be well-regulated.

“There is no guise taking place. We are not trying to fool the public. There was a lot of work and time that went into this, and there is a very thoughtful process behind all of this,” said Councilmember Dan O’Donnell.

Next steps

Starting in November, the city can apply for Type 2 grant funding of up to $3 million through the Equity Cannabis Grants Program for Local Jurisdictions to administer its equity program. Grant awards of over $500,000 would require a 1:1 match from the city. 

Under this grant, at least 80% of awarded dollars would need to be put toward supporting equity program participants. 

Going forward, the city will also need to determine how to spend the additional cannabis tax revenue that the city will be receiving. The adopted program includes a community reinvestment component, stating that the city will strive to allocate 10% of its cannabis tax revenue to support its ongoing scholarship program.

According to City Clerk Kathy Valdez, in the past year, the city issued around $697,000 in scholarships to 1,723 youth. 

However, council members said they would be open to further discussions about using growing tax revenue dollars. 

Outside of the equity program, Franklin also emphasized that he would like to see the Sheriff’s Department conduct youth decoy operations at dispensaries similar to those conducted at tobacco retailers. 

The council also supported the idea of increasing fines for dispensaries that are found to sell to minors, although no incidents have been identified at local dispensaries so far. Last fall, the City Council increased these fines for tobacco retailers in an attempt to curb sales to youth.