In November 2016, California voters approved Proposition 64, the Adult Use of Marijuana Act. This proposition established a new taxation structure, including a cultivation tax and a retail tax. Historically, support for equity applicants and equity license holders has been lacking.

As more and more jurisdictions are creating equity license programs to help those disproportionately affected by the War on Drugs to enter the industry, it is critical that the state provide more resources to get these businesses online. Failure to do so not only pushes these businesses to the illegal market but also fails to keep the promise of Prop 64 to help begin to undo the damage of the War on Drugs by providing pathways into the legal marketplace.

AB 1565 (Jones-Sawyer) would require that, beginning in 2028-29 fiscal year, $15,000,000 from the Cannabis Tax Fund go to the Department of Cannabis Control for the purpose of supporting local equity applicants and licensees – those businesses founded by individuals disproportionately affected by the War on Drugs.