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1. Been convicted of a felony or other crime involving human trafficking, sex trafficking, theft (including wage theft), embezzlement or moral turpitude, or any crime committed on the premises of or in connection with the operation of the Hotel;
2. Violated any federal, state, or local employment law with respect to the operation of the Hotel; or
3. Violated any federal, state, or local public health or safety law in the operation of the Hotel.
The Board shall have the power to render interpretations of this division and to adopt, publish, and enforce rules and regulations to clarify the application of its provisions, which shall have the force of law. These interpretations, rules, and regulations shall be in conformity with the intent and purpose of this division.
(Added by Ord. No. 185,343, Eff. 12/19/17.)
[Editor's note: Former Article 4, "Airport Hospitality Enhancement Zone Ordinance", was repealed by Ord. No. 183,241, Eff. 11/10/14.]
Section
104.00 Purpose.
104.01 Definitions.
104.02 License Required.
104.03 Application Procedure.
104.04 Denial of a License, Suspension of a License, or Disqualification.
104.05 Temporary Approval.
104.06 Annual Licenses.
104.06.1 Retailer Commercial Cannabis Activity Application Processing.
104.07 Proposition M Priority Processing.
104.08 Non-retailer Commercial Cannabis Activity Prior to January 1, 2016, Processing.
104.09 Testing Lab Licenses.
104.10 License Appeal Procedure.
104.11 Mandatory Requirements.
104.12 Renewal and Cancellation.
104.13 Administrative Violations and Penalties.
104.14 Administrative Hearing Procedure.
104.15 Enforcement and Penalties for Unlawful Cannabis Related Activity.
104.15.1 Padlocking, Barricading, and Fencing Property Where Unlicensed Commercial Cannabis Activity Occurs.
104.16 Administration.
104.17 Severability.
104.18 No Vested or Nonconforming Rights.
104.19 Fees and Fines.
104.20 Social Equity Program.
104.21 Management Companies.
104.22 Cannabis Corporate Responsibility Report.
104.23 Storefront Retailer Emblem Program.
(Amended by Ord. No. 187,095, Eff. 7/1/21.)
In November 2016, the people of the State of California voted to approve Proposition 64, the Adult Use of Marijuana Act (AUMA), which decriminalized certain activities related to non-medical cannabis in California. Subsequently, the State enacted the Medicinal and Adult-Use Cannabis Regulation and Safety Act to establish a system to control and regulate the cultivation, distribution, transport, storage, manufacturing, processing and sale of both medicinal and recreational cannabis. The AUMA also provided for State licensing of commercial cannabis businesses, starting January 1, 2018. State law requires city approval in order to obtain a State License. The City desires to create a licensing system for certain cannabis- related businesses. Therefore, the City has created a Department of Cannabis Regulation and a Cannabis Regulation Commission to implement this article and otherwise coordinate administration of the requirements of this article.
(Amended by Ord. No. 187,879, Eff. 6/2/23.)
(a) The following definitions shall apply to this article. Words and phrases not defined herein shall be construed as defined elsewhere in this Code, as required by the context:
2. “Applicant” means a Person applying for a City License pursuant to this article.
3. “Application” means all records, including Pre-Application Records, submitted to DCR by an Applicant or Licensee necessary to request Temporary Approval, an Annual License, an Operating Permit, or to renew a record associated with conduct Commercial Cannabis Activity.
4. “BTRC” means a Business Tax Registration Certificate issued by the City’s Office of Finance.
5. “Business Day” means Monday through Friday from 9:00 a.m. to 4:00 p.m. Pacific Time, excluding City holidays, furlough days, and/or mandated closures.
6. “Business Premises” means the designated structure or structures and land specified in an Application for a License that is owned, leased, or otherwise held under the control of the Applicant or Licensee where the licensed Commercial Cannabis Activity will be or is conducted.
7. “Cannabis” means cannabis as defined in Section 26001 of the California Business and Professions Code, as currently defined or as may be amended.
8. “City” means the City of Los Angeles.
9. “City Council” means the Council of the City of Los Angeles.
10. “Commercial Cannabis Activity” includes the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery or sale of Cannabis or Cannabis products in the City as provided for in Division 10 of the California Business and Professions Code and the California Code of Regulations, as currently defined or as may be amended.
11. “Commission” means the City of Los Angeles Cannabis Regulation Commission, as described in Chapter 31 of Division 22 of the Los Angeles Administrative Code.
12. “Community Plan Area” shall have the same meaning as within Article 1.5, Chapter 1 of the Los Angeles Municipal Code.
13. “Cultivated Area” means the designated area(s) at a Business Premises that will contain mature plants at any point in time.
14. “Cultivation” means cultivation as defined in Section 26001 of the California Business and Professions Code, as currently defined or as may be amended.
15. “DCR” or “Department” means the City of Los Angeles Department of Cannabis Regulation, as described in Chapter 31 of Division 22 of the Los Angeles Administrative Code.
16. “Disproportionately Impacted Area” is defined in Section 104.20 and incorporated herein by reference.
17. “EMMD” means an existing medical marijuana dispensary that is in compliance with all restrictions of Proposition D, notwithstanding those restrictions are or would have been repealed, including, but not limited to, either possessing a 2017 L050 BTRC and current with all City-owed business taxes, or received a BTRC in 2007, registered with the City Clerk by November 13, 2007 (in accordance with the requirements under Interim Control Ordinance 179027), received a L050 BTRC in 2015 or 2016 and submits payment for all City-owed business taxes before the License application is deemed complete. For purposes of this subsection only, an EMMD that has entered into a payment plan with the City’s Office of Finance pursuant to LAMC Section 21.18 to pay all outstanding City-owed business taxes is deemed current on all City-owed business taxes and is deemed to have submitted payment for all City-owed business taxes.
19. “Final Inspection” is a required inspection of the Business Premises conducted by DCR after the issuance of an Annual License and prior to the issuance of an Operating Permit.
20. “Indirect Owner” means a Person with an ownership interest in an entity that has a direct or indirect ownership interest of at least a 20% aggregate ownership stake or equity interest in an Owner of the Applicant or Licensee, unless the interest is solely a security, lien, profit sharing, or encumbrance. Aggregate means the total ownership interest held individually or through an entity. The amount of indirect ownership in the Applicant or Licensee that is held by any other entity is determined by multiplying the percentage of ownership interest at each level. For example, an individual owning 50% of an entity that owns 50% of a cannabis business would have a 25% aggregate ownership interest in the cannabis business.
21. “Individual” means a natural person. The terms “individual” and “natural person” are used interchangeably throughout this article.
22. “Initial Inspection” is a required inspection of the Business Premises conducted by DCR prior to the issuance of Temporary Approval.
23. “License” means a Temporary Approval or Annual License issued under this article.
24. “Licensee” means any Person holding a License under this article.
26. “Management Company” means a Person who manages Commercial Cannabis Activity on a Licensee’s behalf, or a Person who directs or controls another Person who manages Commercial Cannabis Activity on a Licensee’s behalf. A Management Company does not include an employee of a Licensee or an Owner of a Licensee.
27. “Neighborhood Liaison” means a natural person specifically designated by the Licensee to interact with the community, including, but not limited to, responding to complaints.
28. “Operating Permit” means authorization to conduct Commercial Cannabis Activity issued by DCR to an Annual Licensee at a location approved by DCR.
29. “Owner” means a Person with at least a 20% ownership stake or equity interest in the Applicant or Licensee, unless the interest is solely a security, lien, profit sharing, encumbrance or held through another Person.
30. “Person” includes any individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit, and the plural as well as the singular.
31. “Primary Personnel” means any of the following: (i) a natural person with at least a 20% aggregate ownership stake or equity interest in the in the Person applying for a License or a Licensee, unless the interest is solely a security, lien, profit sharing, or encumbrance; (ii) a natural person who manages, directs, or controls the operations of the commercial cannabis business, including but not limited to: a chief executive officer, president, vice president, officer, general manager, a member of the board of directors, a general partner, a managing member or a non- member manager, and/or a trustee(s) or persons who have control of the trust; (ii) if the Applicant or Licensee is owned in whole or in part by an entity and the entity includes natural persons who manage, direct, or control the operations of the Applicant or Licensee, those natural persons shall also be disclosed as Primary Personnel; and (iii) DCR may determine, in its sole discretion on a case-by-case basis, that additional natural persons have the ability to manage, direct, or control the commercial cannabis business and meet the criteria of Primary Personnel.
32. “Proposition D” means the initiative adopted by the voters of the City of Los Angeles on May 21, 2013.
33. “Proposition M Priority Processing Application” or “Proposition M Priority Processing” means an application filed by an EMMD pursuant to the priority processing for EMMD dispensaries as provided by Measure M, adopted by the voters of the City of Los Angeles on March 7, 2017.
34. “Retail Commercial Cannabis Activity” means Commercial Cannabis Activity involving the sales or distribution of Cannabis directly to a consumer.
35. “Rules and Regulations” mean detailed requirements meant to clarify and aid in the administration of this article, which are approved by the City Council or promulgated by DCR.
36. “Social Equity Applicant” means the Person applying for a City License subject to Section 104.20.
37. “Social Equity Individual Applicant” is a natural person who meets the individual eligibility criteria defined in Section 104.20.
38. “State License” means a license issued by the State of California, including a State-issued provisional or annual license.
40. “Undue Concentration” means the Applicant’s Business Premises is located within a higher cannabis License / population ratio within the community plan based on the American Community Survey, updated annually, than the following: ratio of one License per 10,000 residents for Storefront Retailer (Type 10); ratio of one License per 7,500 residents for Microbusiness (Type 12); a maximum aggregate number of 15 Licenses at a ratio of one License for every 2,500 square feet of allowable cultivated area for Cultivation (Types 1A, 1C, 2A, 3A, and 5A); and ratio of one License per 7,500 residents for Manufacture (Type 7). An EMMD is not subject to a finding of Undue Concentration. An Applicant eligible for processing under Section 104.08 is not subject to a finding of Undue Concentration. A Microbusiness involved in on-site retail counts towards the Undue Concentration License limits applied to Storefront Retailer (Type 10) Licenses. A Microbusiness involved in Cultivation counts towards the Undue Concentration limits applied to Cultivation Licenses (Types 1A, 1C, 2A, 3A, and 5A).
41. “Unlawful Establishment” means any Person engaged in Commercial Cannabis Activity if the Person does not have a City-issued Temporary Approval or Operating Permit.
(Added by Ord. No. 185,343, Eff. 12/19/17.)
(a) A License is required for any of the following Commercial Cannabis Activity and shall be issued as A (Adult) and/or M (Medical) categories: (Amended by Ord. No. 185,608, Eff. 7/23/18.)
1. RETAILER COMMERCIAL CANNABIS ACTIVITY - Type 10 - Retailer; Type 9 - Non- Storefront Retailer as currently defined or amended by the State of California.
2. A Person may not hold more than three Type 10 Licenses. A Person with an aggregate ownership or profit-sharing interest of 20 percent or more in the Person applying for a License may not hold more than three Type 10 Licenses, unless the interest is solely a security, lien, or encumbrance. (Amended by Ord. No. 186,703, Eff. 7/10/20.)
3. MICROBUSINESS COMMERCIAL CANNABIS ACTIVITY - Type 12 - Microbusiness as currently defined or amended by the State of California.
4. INDOOR COMMERCIAL CANNABIS CULTIVATION ACTIVITY - Type 1 through Type 5 as defined herein; Type 1A - Cultivation, Specialty Indoor, Small; Type 2A - Cultivation, Indoor Small; Type 3A - Cultivation; Indoor, Medium; Type 4 - Cultivation, Nursery (limited to indoor cultivation); and Type 5A - Cultivation, Indoor, Large; Type 1C - Specialty Cottage Small (limited to indoor cultivation); Processor as currently defined or amended by the State of California.
5. A Person shall not hold more than three Type 3A Medium - Indoor Cultivation Licenses or any combination of cultivation license types where the aggregate allowable cultivation area would exceed 1.5 acres. A Person with an aggregate ownership or profit sharing interest of 20 percent or more in the Person applying for a License may not hold more than three Type 3A Medium - Indoor Cultivation Licenses or any combination of cultivation license types where the aggregate allowable cultivation area would exceed 1.5 acres. This provision does not apply to applications submitted prior to the effective date of this ordinance provided that any changes or modifications to the license do not exceed the total allowable aggregate cultivation area or the number of allowable cultivation licenses held by a Person. (Amended by Ord. No. 186,703, Eff. 7/10/20.)
6. MANUFACTURE COMMERCIAL CANNABIS ACTIVITY
(i) Type 6 - Manufacturer 1 as currently defined or amended by the State of California.
(ii) Type 7 - Manufacturer 2 as currently defined or amended by the State of California.
(iii) Type N - Infusion.
(iv) Type P - Packaging.
(v) Type S - Shared-use facility. (Added by Ord. No. 185,629, Eff. 7/2/18.)
7. TESTING COMMERCIAL CANNABIS ACTIVITY - Type 8 - Testing Laboratory as currently defined or amended by the State of California
8. DISTRIBUTOR COMMERCIAL CANNABIS ACTIVITY - Type 11- Distributor as currently defined or amended by the State of California.
9. OTHER COMMERCIAL CANNABIS ACTIVITY - Any Commercial Cannabis Activity which requires a State of California license as currently defined or amended by the State of California and which is not identified in this article. (Added by Ord. No. 185,629, Eff. 7/2/18.)
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