If you were negatively affected by the criminalization of cannabis, you can apply to have your license fee waived and/or deferred.

Read the eligibility criteria below for fee waivers and fee deferrals or download a guidance document.

Business eligibility

There are two basic requirements for getting equity fee relief. If your business meets them both, you’re eligible for a waiver.

1. Gross revenue

Your cannabis business must have gross revenue of no more than $5 million per year.  

If you’re starting a new business, you must expect no more than $5 million in gross revenue in your first year.

2. Equity ownership:

This criterion applies to fee waivers and fee deferrals.

At least 50% of your business must be owned by people who meet one of the following equity criteria:

• Cannabis conviction or arrest
• Income level
• Neighborhood affected by criminalization of cannabis

Example 1

2 people each own 50% of the business. 

• Owner 1 meets the impact criteria 

• Owner 2 does not meet the impact criteria 

The business qualifies for equity fee relief. 50% of the business is owned by people who meet the impact criteria. 

Example 2

6 people own the business.

• Owners 1, 2, and 3 each own 20% and meet the impact criteria
• Owner 4 owns 20% and does not meet the impact criteria
• Owners 5 and 6 each own 10% and do not meet the impact criteria

The business qualifies for equity fee relief. 60% of the business is owned by people who meet the impact criteria.

Example 3

5 people each own 20% of the business.

• Owners 1 and 2 meet the equity criteria
• Owners 3, 4, and 5 do not meet the impact criteria

The business does not qualify for equity fee relief.

Only 40% of the business is owned by people who meet the impact criteria.

Equity owner criteria

Business owners can show they were impacted by cannabis criminalization in a number of ways. You only need to meet one of the criteria to qualify.

Cannabis conviction or arrest

You were convicted or arrested for one of these cannabis crimes before November 8, 2016:

• Sale
• Possession
• Use
• Manufacture
• Cultivation

You may also be eligible if an immediate family member was convicted or arrested for a cannabis-related crime and you lived in a California county with drug arrest rates that were higher than the state average drug arrest rates.

Live in an area with a population disproportionately impacted by past criminal justice policies (census tract or family member conviction or arrest)

You lived in a place for at least 5 years between 1980 and 2016 that was a California county with drug arrest rates that were higher than the state average drug arrest rates and:

• The top 25% nationally for unemployment and poverty; or
• You have an immediate family member who was convicted or arrested for a cannabis-related crime prior to November 8, 2016.

You can use our map tool to see if you live in a qualifying area.

Income

Your household income is no more than 60% of the area’s median income, or you’re eligible to get financial aid through a program like:

• CalFresh
• MediCal
• CalWORKS
• Supplemental security income
• Social Security disability

Area median income

You may qualify for equity fee relief if your household income is not more than 60% of the state’s listed median income for a household the size of yours located in your area.  

To find the state’s listed median income for your household, visit the California Department of Housing and Community Development (HCD) website and review the most recent HCD State Income Limits PDF. 

To determine if you qualify find the county you currently live in and look at the column that lists the number of people living in your household.  

Related content

Apply for fee relief

Learn how to request equity fee relief and show you meet the equity criteria.

Equity fee relief FAQ 

For additional information about DCC’s equity fee relief program review the FAQs.