Mendocino County Grand Jury
• 2024-2025
The Mendocino County Cannabis Equity Grant Program
⚠️ Translation Notice: This content has been automatically translated. The original English text is the official version. Translation may contain errors.
⚠️ Este contenido ha sido traducido automáticamente. El texto original en inglés es la versión oficial. La traducción puede contener errores.
Findings and Recommendations 5 findings
F1
There was no process developed for the distribution of grant funds to individuals prior to applications being received. This has resulted in extended delays at every step from eligibility to application to communication to contract generation. This continues to prevent timely funds distribution to approved LEEP applicants.
Related Recommendations (3)
R1
the BOS initiate a standing committee on cannabis including, but not limited to, consideration of LEEP progress updates, issues and challenges, and encouraging community input. The Grand Jury notes while all businesses are not equity applicants, these issues may be relevant as future grants (e.g., LJAG grants), become available. (F1- F5)
R2
the County promptly identify the issues which may be impeding the distribution of current direct grant funds by the August 2022 deadline and implement a plan for addressing those delays so that the potential loss of current and future grant funds can be avoided. (F1 - F3, F5) 3 Appendix C
R3
the County provide detailed instructions to future applicants for the CEG program regarding potential permit issues and record-keeping requirements (such as an expectation that applicants manage their cash flows and keep appropriate records), to facilitate the presentation of properly submitted applications and to ensure the use of funds are properly tracked. (F1 - F3)
F2
The county did not ask the state for requirements on record keeping for LEEP grant recipients until May 2022 and apparently did so only to establish the county’s risk of having to repay funds if they were not spent for approved purposes. Applications ready for final approval are being held up by County Counsel. The requirements3 do not appear to be onerous as they are quite similar to those previously communicated requirements. However, records which must be provided to the state may still cause even more information requests before final Cobblestone approval and should have been sought much earlier in the process.
Related Recommendations (3)
R1
the BOS initiate a standing committee on cannabis including, but not limited to, consideration of LEEP progress updates, issues and challenges, and encouraging community input. The Grand Jury notes while all businesses are not equity applicants, these issues may be relevant as future grants (e.g., LJAG grants), become available. (F1- F5)
R2
the County promptly identify the issues which may be impeding the distribution of current direct grant funds by the August 2022 deadline and implement a plan for addressing those delays so that the potential loss of current and future grant funds can be avoided. (F1 - F3, F5) 3 Appendix C
R3
the County provide detailed instructions to future applicants for the CEG program regarding potential permit issues and record-keeping requirements (such as an expectation that applicants manage their cash flows and keep appropriate records), to facilitate the presentation of properly submitted applications and to ensure the use of funds are properly tracked. (F1 - F3)
F3
The MCD has not been adequately staffed or resourced to enable the timely processing of LEEP equity grants including communication with applicants. Inadequate MCD staffing continues with 10 vacant positions reported in May 2022 and only 12 current employees.
Related Recommendations (3)
R1
the BOS initiate a standing committee on cannabis including, but not limited to, consideration of LEEP progress updates, issues and challenges, and encouraging community input. The Grand Jury notes while all businesses are not equity applicants, these issues may be relevant as future grants (e.g., LJAG grants), become available. (F1- F5)
R2
the County promptly identify the issues which may be impeding the distribution of current direct grant funds by the August 2022 deadline and implement a plan for addressing those delays so that the potential loss of current and future grant funds can be avoided. (F1 - F3, F5) 3 Appendix C
R3
the County provide detailed instructions to future applicants for the CEG program regarding potential permit issues and record-keeping requirements (such as an expectation that applicants manage their cash flows and keep appropriate records), to facilitate the presentation of properly submitted applications and to ensure the use of funds are properly tracked. (F1 - F3)
F4
The contractor chosen to implement the grants, Elevate Impact, has worked primarily in urban areas and lacks the capital project expertise needed to support and escalate the speed of LEEP grant distributions.
Related Recommendations (2)
R1
the BOS initiate a standing committee on cannabis including, but not limited to, consideration of LEEP progress updates, issues and challenges, and encouraging community input. The Grand Jury notes while all businesses are not equity applicants, these issues may be relevant as future grants (e.g., LJAG grants), become available. (F1- F5)
R4
the County offer a business plan creation and general business training to applicants as part of Direct Technical Assistance prior to application submission. Possible funding sources for such training could be investigated from existing resources, such as the grant funds allocated for Direct Technical Assistance. (F1 -
F5
The LEEP applications are delayed until a qualified planner can review the application. Qualified planners hesitate to work in the cannabis industry.
Related Recommendations (2)
R1
the BOS initiate a standing committee on cannabis including, but not limited to, consideration of LEEP progress updates, issues and challenges, and encouraging community input. The Grand Jury notes while all businesses are not equity applicants, these issues may be relevant as future grants (e.g., LJAG grants), become available. (F1- F5)
R2
the County promptly identify the issues which may be impeding the distribution of current direct grant funds by the August 2022 deadline and implement a plan for addressing those delays so that the potential loss of current and future grant funds can be avoided. (F1 - F3, F5) 3 Appendix C