Grow, Gift, Repair

A co-working space license in California

According to the CDPH, the Type S license category was designed in “response to demand from cities and counties wishing to implement equity programs.” Without S licenses, many in Los Angeles are concerned a key piece of the city’s ambitious social equity program—designed to help make up for the disproportionate consequences of the drug war—will be impossible.

“The way the Social Equity Program is currently structured, established operators are supposed to allocate space in their businesses to social equity applicants,” Armstrong explained. “This requires an S license or something equivalent to it.”

State regulations dictate that there must be a single “primary licensee” who operates the location. That licensee must secure a California cannabis manufacturing license for the entire space, registering it as a shared-use facility. Businesses wishing to use the space can then simply apply for S licenses. There’s no limit to how many operators can use the space, but only a single business is allowed on the premises at a time, a step meant to ensure the separation needed to comply with state track-and-trace rules.

In a recent letter to city officials, Adam Spiker, executive director of the Southern California Coalition, an industry group, warned that without S licenses, the city may not be able to move forward with the city’s social equity mentoring program, designed to take place in a shared facility.