The purpose of this bulletin is to provide guidance to Office of Cannabis’ (OOC) grantees about OOC’s efforts to redistribute unspent grant funds. This bulletin discusses grantee eligibility, documentation requirements, and eligible expense categories.
Grantee Eligibility for Redistribution
To be eligible for grants, applicants must have met the following eligibility criteria, adopted by OOC in coordination with the Cannabis Oversight Committee, as of December, 1, 2022:
- The applicant must be an Equity Applicant, and must have a Cannabis Business Permit application submitted to OOC without disqualifying factors (which include but are not limited to withdrawal, abandonment, and applicant ineligibility);
- The Equity Applicant must own at least 40% of the corporate Applicant connected with their Cannabis Business Permit application;
- The Equity Applicant’s Cannabis Business Permit application must have been formally referred to the Planning Department and have a status of Build-out or Approved.
The grant term expired on June 9, 2023. To be eligible for grant redistribution, a prospective grantee must have met the initial Grant Eligibility in addition to demonstrating that 70% of their grant award was expended by the end of the initial grant term, June 9, 2023.
The OOC will circulate an award notification to eligible applicants. Applicants will then be required to notify the OOC no later than Monday, July 24 of their intent to move forward.
Back to topDocumentation Requirements
After the Grant Agreement amendment is fully executed, eligible grantees will need to provide either (1) a request for advancement of funds that includes an estimated budget detailing how they plan on spending down their grant award; or (2) a request for reimbursement that lists and documents past expenditures eligible for reimbursement. Grant funds will be disbursed in lump-sum advancements and/or via reimbursement requests.
During the grant term, grantees who receive advancement, must provide Progress Report(s) reflecting the amount of grants expended and whether there are any changes to their estimated budget.
Back to topEligible Expenses
Grant funds may be used for the following eligible expenses:
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1. Rent |
8. Cannabis Related Taxes |
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2. Regulatory Fees |
9. Banking and Escrow Fees |
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3. Regulatory Compliance |
10. Packaging and Materials |
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4. Cannabis Testing |
11. Marketing and Advertising |
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5. Fixtures and Equipment |
12. Furniture |
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6. Capital Improvements |
13. Accounting Services |
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7. Legal Services |
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If grant funds are not expended by the end of the grant term or used for non-eligible expenses, then the grantee must return those funds to the City and County of San Francisco or risk enforcement action.
Enforcement may include, but is not limited to:
- Civil penalties
- Criminal penalties
- Permit revocation
- Being unable to apply for future grants for a period of 5 years