Accept FY 2022-23 Disbursement of Cannabis Emergency Relief Fund Report
The Bureau of Development Services asks the City Council to accept the report “FY22/23 Cannabis Emergency Relief Fund (CERF) Disbursement Report.”
The report is a record of the results of FY22/23 disbursement of the CERF which allocated $456,901 from the Recreational Cannabis Tax Fund and General Fund. CERF is the first emergency relief program of its kind in the nation to provide emergency relief funds in grants up to $25,000 to small licensed Cannabis businesses within Portland city limits and up to $5,000 to Cannabis industry workers economically impacted from Covid-19, vandalism, robberies, wildfire, and the residual effects of illness, trauma, and grief suffered from such impacts.
Official Record (Efiles)
Impact Statement
Purpose of Proposed Legislation and Background Information
In November 2016, City of Portland voters approved Ballot Measure 26-180 to impose a 3% local tax on retail cannabis sales. The revenue from the 3% local tax on retail cannabis sales is expected to be managed independently and would be dedicated to three specific areas, including “support for neighborhood small businesses, especially minority and women owned businesses.”
March 16, 2020, Oregon Governor Kate Brown, declared a State of Emergency due to concerns around the COVID-19 pandemic and issued an Executive Stay at Home Order. This order closed schools and many businesses that were considered non-essential. Cannabis businesses were deemed essential and were fortunately able to continue operating, although unfortunately, open for business made the Cannabis industry employees vulnerable to contracting Coronavirus. Employees with small children being forced out of the workforce or reduction in hours in order to stay home with their children, due to lack of childcare and the need for homeschooling. These businesses were also vulnerable to what would become a 115% increase in violent crime reported from the previous year and vandalism due to the civil unrest seen around the city and country.
As time progressed, the distress felt by the Cannabis Industry only worsened. In early September 2020, rapid expansion of multiple wildfires ran rampant across the state making the Oregon 2020 wildfire season one of the most destructive on record. Oregon Wildfires have caused unprecedented devastation to the entire cannabis industry supply chain with significant uncertainty surrounding future outcomes and long-term sustainability.
December 2021, Portland City Council approved $1.33 million one-time allocation in grant funds allocated from Recreational Cannabis Tax Revenue for FY21/22 in a historic 5-0 vote which allowed Portland to become the first government jurisdiction in the country to provide emergency relief to cannabis businesses and it’s workers.
June 2022, Council approved $456,901. This included a one-time allocation of $305,750 from the Recreational Cannabis Tax Fund and $151,151 of one-time General Fund resources to support the FY22/23 Cannabis Emergency Relief Fund.
The Cannabis Industry is still reeling in hardship and continued increased criminal activity. The cannabis economy is the lowest it has been in eight (8) years with Portland seeing record number of closures and changes of ownership. Data obtained by OLCC indicates 297 Portland Cannabis businesses reported theft of product and/or money between February 2020 and August 2023. Some businesses being victimized more than once. These thefts range from looting to armed robbery, some resulting in bodily injury, sexual assault, and even homicide. Portland accounts for 69.2% of cannabis related crimes statewide.
Financial and Budgetary Impacts
None at this time.
Community Impacts and Community Involvement
The City continues to recognizes the ongoing need to provide Cannabis businesses and its employees emergency relief for those economically impacted from continued vandalism, robberies, wildfire, and the residual effects of illness, trauma, and grief suffered from such impacts. The City recognizes that historically disadvantaged individuals experience the greatest impacts and need the most support, therefore, BIPOC, Women, and Veteran owned small businesses and individuals received priority funding. This is necessary for not only the sustainability of Portland’s cannabis industry, but also for the future of any cannabis tax revenue that provides relief and assistance for many more Portlander’s and their communities.