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(Amended by Ord. No. 186,703, Eff. 7/10/20.)
(a) Program – Original Eligibility Verification. Except for Tier 3 Applicants, as defined in Section 104.20(a)(1)(iv), an Applicant that submitted an Application subject to Section 104.08 by September 13, 2018, or submitted an application for program eligibility verification during the verification period between May 28, 2019, and July 29, 2019, and/or met the criteria in this subsection for a Commercial Cannabis Activity License pursuant to Section 104.06.1(b), shall comply with Section 104.20(a)(2) when a License is issued or renewed. (Amended by Ord. No. 187,095, Eff. 7/1/21.)
1. Social Equity Individual Applicant – Individual Eligibility Verification. An individual subject to this subsection shall be verified as Social Equity Individual Applicant. A Social Equity Individual Applicant may be further verified as a Tier 1 Social Equity Individual Applicant, Tier 2 Social Equity Individual Applicant, or a Tier 3 Applicant in accordance with the definitions and criteria in this subsection.
(i) The following definitions shall apply in this subsection:
(1) “California Cannabis Arrest or Conviction” means an arrest or conviction in California for any crime under the laws of the State of California or the United States relating to the sale, possession, use, manufacture, or cultivation of Cannabis that occurred prior to November 8, 2016. An arrest, prosecution or conviction for a violation of Proposition D, as codified in former Article 5.1 of Chapter IV of the Los Angeles Municipal Code, notwithstanding that Proposition D has been repealed, is not a California Arrest or Cannabis Conviction. A Social Equity Applicant with a California Cannabis Arrest or Conviction shall be ineligible to apply for a License in any of the circumstances specified in Section 104.03(a), subject to the time restrictions therein.
(2) “Disproportionately Impacted Area” means eligible zip codes based on the “More Inclusive Option” as described on page 23 of the “Cannabis Social Equity Analysis Report” commissioned by the City in 2017, and referenced in Regulation No. 13 of the Rules and Regulations, or as established using the same methodology and criteria in a similar analysis provided by an Applicant for an area outside of the City.
(3) “Low-Income” means 80 percent or below of Area Median Income for the City based on the 2016 American Community Survey and updated with each decennial census.
(4) “Tier 1 Social Equity Individual Applicant” is an individual who meets the following criteria at the time of applying for a license: (1) Low-Income and prior California Cannabis Arrest or Conviction; or (2) Low-Income and a minimum of five years’ cumulative residency in a Disproportionately Impacted Area.
(5) “Tier 2 Social Equity Individual Applicant” is an individual who meets the following criteria at time of applying for a license: (1) Low-Income and a minimum of five years’ cumulative residency in a Disproportionately Impacted Area; or (2) a minimum of 10 years’ cumulative residency in a Disproportionately Impacted Area.
(6) “Tier 3 Applicant” is a Person who applied for a Commercial Cannabis Activity License under Section 104.08 and does not meet the criteria of a Tier 1 Social Equity Individual Applicant or Tier 2 Social Equity Individual Applicant.
2. Social Equity Applicant – Entity Eligibility Verification. A Social Equity Applicant shall comply with the Equity Share criteria in this subdivision before a License is issued or renewed. Upon a Social Equity Applicant’s request, DCR may conduct an Equity Share review under this subsection for the Applicant entity prior to the filing of a complete Temporary Approval Application, subject to the payment of the Equity Share Documents / Social Equity Agreement Review Fee pursuant to Section 104.19. This Equity Share review may replace the required Equity Share review during the Temporary Approval Application process, provided that the Social Equity Applicant attests that there are no changes to ownership since the original Equity Share review was conducted and that there are no additional or new agreements that were not previously disclosed to DCR during the original Equity Share review. DCR may conduct a new Equity Share review if there are changes to ownership, operating agreements, bylaws, and/or other agreements or material facts related to compliance with this subsection that were not disclosed during the original review. (Amended by Ord. No. 187,459, Eff. 4/15/22.)
(i) Ownership Percentage. A Tier 1 Social Equity Individual Applicant shall own no less than a 51 percent Equity Share in the Person to whom the License is issued. A Tier 2 Social Equity Individual Applicant shall own no less than a 33 1/3 percent Equity Share in the Person to whom the License issued.
(ii) “Equity Share” means all of the following:
(1) Unconditional ownership of the Equity Share. The Equity Share shall not be subject to conditions precedent, conditions subsequent, executory agreements, voting trusts, restrictions on or assignments of voting. (Amended by Ord. No. 187,095, Eff. 7/1/21.)
(2) Profits, dividends, and distributions. Social Equity Individual Applicants shall receive all of the following:
(A) At least their Equity Share percent of the distribution of profits paid to the owners of the Social Equity Applicant or Licensee;
(B) 100 percent of the value of each share of stock, member interest, partnership interest, or other equivalent owned by them in the event that the stock, member interest, or partnership interest is sold; and
(C) At least their Equity Share percent of the retained earnings of the Social Equity Applicant or Licensee and 100 percent of the unencumbered value of each share of stock, member interest, or partnership interest owned in the event of dissolution of the corporation, limited liability company, or partnership.
(3) Voting rights and control. Social Equity Individual Applicants shall receive the following at all times:
(A) At least their Equity Share percent of the voting rights on all business decisions, including, but not limited to, long-term decisions, daily business operations, retention and supervision of the executive team, managers, and management companies, and the implementation of policies.
(B) The highest officer position in the Social Equity Applicant or Licensee, such as the position of chief executive officer, unless another natural person is appointed to that position by mutual agreement of the parties. (Amended by Ord. No. 187,095, Eff. 7/1/21.)
(4) Successors. The Equity Share shall not be subject to arrangements causing or potentially causing ownership benefits in the Social Equity Applicant or Licensee to go to another in any circumstance other than after death or incapacity. In the case of death or incapacity, a Social Equity Individual Applicant shall identify a natural person(s) as the Social Equity Individual Applicant’s own successor in interest or assignee of their Equity Share. If a Social Equity Individual Applicant dies, the Social Equity Applicant or Licensee will continue to qualify under this section with the requisite Equity Shares so long as the successor in interest of the deceased Social Equity Individual Applicant inherits or otherwise acquires all of such individual’s ownership interest in the Social Equity Applicant or Licensee. The natural person(s) may subsequently identify an entity, such as a trust, to hold the interest. Upon the death of the Social Equity Individual Applicant or Licensee, the Social Equity Applicant shall notify DCR within 30 days of their death. The Social Equity Applicant shall provide a certified copy of the death certificate and update the contact information on file with DCR within 60 days of the death. (Amended by Ord. No. 187,879, Eff. 6/2/23.)
(iii) Additional Equity Share Require- ments.
(1) All Owners shall: (1) comply in all respects with the Equity Share criteria and requirements in this section (“Equity Share Requirements”) in dealings with one another; (2) keep records evidencing their compliance; and (3) on the other party’s reasonable request, provide these records of compliance to the other party.
(2) Any action or inaction taken by a party in violation of the Equity Share Requirements shall entitle the other party to initiate a legal action in the Superior Court of Los Angeles, including, but not limited to, an action for specific performance, declaratory relief, and/or injunctive relief, to enforce the Equity Share Requirements against the other party.
(3) Any annual License(s) issued to a Social Equity Applicant may be suspended or revoked, or a License renewal denied, if it can be shown, by a preponderance of the evidence, that any provision in an operating agreement, contract, business formation document, or any other agreement between Owners of the Social Equity Applicant violates any of the Equity Share Requirements and is not cured within the time allotted by DCR. (Amended by Ord. No. 187,095, Eff. 7/1/21.)
(4) All Owners are required to incorporate the following addendum into operating agreement documents to evidence compliance with Equity Share Requirements: “To the extent that any provision of this agreement, or part thereof, is or may be construed to be inconsistent with or in violation of the “Equity Share” requirements set forth in Los Angeles Municipal Code section 104.20, such provision(s) shall be ineffective, unenforceable, and null and void.”
(b) Program – Expanded Eligibility Verification. An individual seeking to participate in the Social Equity Program shall meet the criteria and requirements in this subsection
1. Social Equity Individual Applicant – Individual Eligibility Verification. An Applicant subject to this subsection shall be verified as a Social Equity Individual Applicant in accordance with the definitions and criteria in this subsection.
(i) “Social Equity Individual Applicant” means an individual who meets two of the following three criteria: (1) Low-Income; (2) a prior California Cannabis Arrest or Conviction; (3) ten years’ cumulative residency in a Disproportionately Impacted Area. For the purposes of Section 104.06.1(c), “Social Equity Individual Applicant” means an individual with a prior California Cannabis Arrest or Conviction and who also meets one of the following two criteria: (1) Low-Income; or (2) ten years’ cumulative residency in a Disproportionately Impacted Area.
(ii) The following definitions shall apply in this subsection:
(1) “Asset” means net assets at, or below, four times the Low-Income thresholds based on Household Size. Examples of liquid accounts that shall be disclosed include but are not limited to, saving accounts, checking accounts, certificates of deposit, money market accounts, stocks, trusts, and gifts. Qualified retirement accounts and an applicant’s primary residence shall be excluded for purposes of the calculation, but other forms of real estate shall be included. Such retirement accounts are limited to accounts that are intended for retirement and that would incur a penalty if withdrawn before a specified retirement age per each account.
(2) “Household Size” means the number of individuals that meet any of the following criteria: (Amended by Ord. No. 187,879, Eff. 6/2/23.)
(A) All spouses or domestic partners must be included in the household and must appear in the submission content.
(B) All household members who are under 18 years of age must be the legal dependent of an adult household member, except in the case of emancipated minors, as claimed on the most recent income tax return, or legal minor children of title holders. All household members who are under 18 years of age must be the legal dependent or emancipated minor of an adult household member, as claimed on the most recent income tax return.
(C) Pregnant Applicants will be counted as two household members only with verifiable medical documentation.
(D) Temporarily absent household members who intend to live in the residence upon return may be considered, if verifiable documen- tation supporting their absence is provided. Such household members include, but are not limited to, household members serving temporarily in the armed forces, or who are temporarily institutionalized.
(E) Neither live-in assistants nor foster children will be counted toward Household Size. Individuals not listed on the Social Equity Individual Applicant’s most recent tax return, such as elderly relatives, live-in assistants, and foster children will not be counted toward Household Size.
(3) “California Cannabis Arrest or Conviction” means an arrest or conviction in California for any crime under the laws of the State of California or the United States relating to the sale, possession, use, manufacture, or cultivation of Cannabis that occurred prior to November 8, 2016. An arrest, prosecution or conviction for a violation of Proposition D, as codified in former Article 5.1 of Chapter IV of the Los Angeles Municipal Code, notwithstanding that Proposition D has been repealed, is not a California Arrest or Cannabis Conviction. A Social Equity Applicant with a California Cannabis Arrest or Conviction shall be ineligible to apply for a License in any of the circumstances specified in Section 104.03(a), subject to the time restrictions therein.
(4) “Disproportionately Impacted Area” means Police Reporting Districts as established in the Expanded Social Equity Analysis, or as established using the same methodology and criteria in a similar analysis provided by an Applicant for an area outside of the City.
(5) “Low-Income” means both of the following definitions are met: (1) the Social Equity Individual Applicant meets the low-income thresholds established in the annual U.S. Department of Housing and Urban Development (HUD) income limits based upon the Area Median Income (AMI) for Los Angeles County based on household size; and (2) the Social Equity Individual Applicant does not have Assets in excess of the amount as defined in this subsection. For the purpose of assessing whether the low-income threshold has been met, DCR shall calculate the Household Size based the criteria in Subsection (b)(1)(ii)(2)(A) through (E).
2. Social Equity Applicant – Entity Eligibility Verification. An Applicant must comply with the Equity Share requirements in this subsection before a License is issued or renewed. Upon a Social Equity Applicant’s request, DCR may conduct an Equity Share review under this subsection for a the Applicant entity prior to the filing of a complete Temporary Approval Application, subject to the payment of the Equity Share Documents / Social Equity Agreement Review Fee pursuant to Section 104.19. This Equity Share review may replace the required Equity Share review during the Temporary Approval Application process, provided that the Social Equity Applicant attests that there are no changes to ownership since the original Equity Share review was conducted and that there are no additional or new agreements that were not previously disclosed to DCR during the original Equity Share review. DCR may conduct a new Equity Share review if there are changes to ownership, operating agreements, bylaws, and/or other agreements or material facts related to compliance with this subsection that were not disclosed during the original review. (Amended by Ord. No. 187,459, Eff. 4/15/22.)
(i) Ownership Percentage. One or more Social Equity Individual Applicants shall own no less than an aggregate 51% Equity Share in the Person to whom the License is issued. A sufficient number of Social Equity Individual Applicants, individually and/or through an entity, shall be disclosed to evidence that the owner(s) of the Applicant or Licensee meets the aggregate 51% Equity Share requirement. Social Equity Individual Applicants with less than a 20% aggregate ownership stake or equity interest in the Applicant or Licensee may be included in the aggregate total. Aggregate means the total ownership interest held individually or through an entity. For example, an individual owning 50% of an entity that owns 50% of a Licensee has a 25% aggregate ownership interest in the Licensee. (Amended by Ord. No. 187,724, Eff. 1/30/23.)
(ii) “Equity Share” is defined in Subsection (a)(2) and incorporated herein by reference.
(iii) Additional Equity Share Requirements in Section 104.20(a)(2)(iii) which are incorporated herein by reference. (Added by Ord. No. 187,095, Eff. 7/1/21.)
(c) Programming – Benefits and Requirements.
1. Programming – Ownership and Disclosure Requirements. Social Equity Applicants shall comply with the requirements in this subsection and in the Rules and Regulations.
(i) Social Equity Applicants may only transfer control or ownership to Persons who meet the same Equity Share requirements, and only upon the prior written approval of DCR. DCR shall promulgate Rules and Regulations for the transfer of control or ownership.
(ii) Social Equity Applicants shall provide to DCR bylaws or operating agreements which specify the percentage of ownership and control by each Person.
(iii) Social Equity Applicants shall disclose to DCR any management or employee staffing agreements it has or will enter into during the period of the License.
(iv) Social Equity Applicants shall disclose any options to purchase equity or control in the Social Equity Applicant.
(v) At the time of requesting an annual license renewal pursuant to Section 104.12, Social Equity Applicants shall provide to DCR a financial statement for its most recently completed fiscal year.
(vi) On or before March 1 of each year, Licensees subject to Section 104.20 shall submit to DCR an annual “Equity Report” signed by all Owners that describes the business plan guidance, services, consulting, training, and/or other technical assistance that encourages and supports the establishment and growth of the Social Equity Licensee, and the estimated dollar value of those services, that were provided by the Owners to the Social Equity Individual Applicant Owner during the past calendar year. As part of the Equity Report, all Owners must execute an affidavit under penalty of perjury confirming compliance with all requirements set forth in Section 104.20, and acknowledging the requirements to disclose agreements about the management, control or direction of the licensed entity, profits, and/or loans. (Added by Ord. No. 187,459, Eff. 4/15/22.)
2. Programming – Workforce Require- ments. Social Equity Applicants and Tier 3 Applicants shall comply with the workforce requirements in this subdivision.
(i) Definitions.
(2) “Transitional Worker” means an individual who, at the time of starting employment at the Business Premises, resides in an Economically Disadvantaged Area or Extremely Economically Disadvantaged Area, as those terms are defined in Section 11.5.6 of this Code, and faces at least two of the following barriers to employment: (1) being homeless; (2) being a custodial single parent; (3) receiving public assistance; (4) lacking a GED or high school diploma; (5) having a criminal record or other involvement with the criminal justice system; (6) suffering from chronic unemployment; (7) emancipated from the foster care system; (8) being a veteran; or (9) over the age of 65 and financially compromised.
(ii) Social Equity Applicants. A Social Equity Individual Applicant shall make a good faith effort to have no less than 50 percent of the weekly hours of the Licensee’s workforce performed by Employees whose primary place of residence is within a 3-mile radius of the Business Premises location. Of those Employees, 20 percent shall be Social Equity Workers and 10 percent shall be Transitional Workers.
(iii) Tier 3 Applicants. A Tier 3 Applicant shall make a good faith effort to have no less than 50% of the weekly hours of the Licensee’s workforce performed by employees whose primary place of residence is within a 3-mile radius of the Business Premises. Of those employees, 30% shall be Social Equity Workers and 10% Transitional Workers. At a minimum, a Licensee is required to contact local community-based organizations, City of Los Angeles Work Source Centers, and other similar organizations to facilitate job outreach, development, and placement services. A Licensee is required to provide a detailed annual report no later than the last day of February that provides evidence of its outreach efforts, including the number of persons interviewed, and details on who was hired to satisfy the good faith requirement. (Amended by Ord. No. 187,879, Eff. 6/2/23.)
3. Programming – Social Equity Agreement Requirements. Tier 3 Applicants shall comply with the requirements in this subsection.
(i) Prior to the issuance of a License, a Tier 3 Applicant shall enter into a Social Equity Agreement with the City to provide to a Social Equity Individual Applicant for a period of three years: (1) Ancillary Business Costs; (2) Property; and (3) Education and Training. Social Equity Agreements shall be processed and approved by DCR.
(1) Ancillary Business Costs. Tier 3 Applicants shall provide security, management, equipment and other ancillary business costs to a Social Equity Individual Applicant.
(2) Education and Training. Tier 3 Applicants shall provide a minimum of 50 hours per year in business development education and training to a Social Equity Individual Applicant. Education and Training provided by Tier 3 Applicants may include: accounting, inventory management, payroll practices, tax preparation, employee recruitment, retention and workforce outreach, or reporting requirements training.
(3) Property – Onsite. Tier 3 Applicants shall provide floor area, at no cost and inclusive of utilities, within their Business Premises location, or at an off-site location, pursuant to Subsection (c)(3)(i)(4), established as a separate Business Premises for a Social Equity Individual Applicant, for a period of three years to engage in a Commercial Cannabis Activity in accordance with Article 5, Chapter X of this Code. The minimum requirements of the floor area provided shall be: (1) Cultivation - minimum 500 square feet or 10 percent of Tier 3 Applicant’s entire Business Premises, whichever is greater; (2) Manufacturing - minimum 800 square feet or 10 percent of Tier 3 Applicant’s entire Business Premises, whichever is greater; (3) Testing - minimum 1,000 square feet or 10 percent of Tier 3 Applicant’s entire Business Premises, whichever is greater; (4) Distributor - minimum 1,000 square feet or 10 percent of Tier 3 Applicant’s entire Business Premises, whichever is greater; (5) Non-storefront retail - minimum 1,000 square feet or 10 percent of Tier 3 Applicant’s entire Business Premises, whichever is greater; (6) Storefront retail - minimum 1,000 square feet or 10 percent of Tier 3 Applicant’s entire Business Premises, whichever is greater.
(4) Property – Off-site. A Tier 3 Applicant shall provide floor area meeting the minimum requirements under Subsection 104.20(c)(3)(i)(3), at no cost and inclusive of utilities, to a Social Equity Individual Applicant at a different off-site Business Premises location in the City, unless property is provided on-site as specified in this section, subject to the following conditions:
(A) The Social Equity Individual Applicant can conduct the Commercial Cannabis Activity for its License type at the off-site location without violating any of the land use or sensitive use requirements in Article 5, Chapter X of this Code.
(B) A Tier 3 Applicant shall be responsible for all costs to bring the off-site location into compliance with all site specific and property related regulations, including, but not limited to, Building Code and Fire Code regulations.
(C) The Social Equity Individual Applicant has the legal right to occupy and use the new location for Commercial Cannabis Activity.
(D) DCR finds that the facilities at the off-site location are substantially similar to the facilities at the Tier 3 Applicant’s Business Premises.
(5) Property Support. In lieu of providing the minimum property requirements in Subsections (c)(3)(i)(3) and (4), a Tier 3 Applicant may provide property support directly to the Social Equity Individual Applicant equal to the greater of the following:
(A) The actual monthly cost per square foot of leased space at the Tier 3 Applicant’s Business Premises multiplied by the amount of space required by this subsection multiplied by 36 months; or
(B) The arithmetic mean of the cost per square foot of leased space for a total of 10 commercial cannabis businesses within a one mile radius, and authorized by DCR for the same Commercial Cannabis Activity, of the Tier 3 Social Equity Applicant’s Business Premises multiplied by the amount of space required by this subsection multiplied by 36 months. If there are less than 10 commercial cannabis businesses within the one mile radius, the radius shall be increased in 100-foot increments until a total of 10 businesses are included.
(6) A Tier 3 Applicant shall provide property support directly to the Social Equity Individual Applicant in one of the following manners: (1) in full upon the first effective day of the Social Equity Agreement; (2) in three equal payments on dates determined by DCR within the first 24 months of the term of the Social Equity Agreement; (3) in 36 equal monthly payments during the term of the Social Equity Agreement; or (4) as agreed upon by the Social Equity Individual Applicant and the Tier 3 Applicant, and approved by DCR.
4. Programming – Benefits. Social Equity Applicants verified in accordance with Subsections (a) and (b) may receive benefits outlined in this subsection. Tier 3 Applicants shall not be processed under this subsection but shall be afforded priority processing as described in Section 104.08.
(i) Processing.
(1) DCR shall process Applications for Social Equity Applicants in accordance with Section 104.06.1.
(2) DCR shall provide priority processing to Social Equity Applicants applying for a Non-Retailer License on a 1:1 ratio with all non-Social Equity Individual Applicants.
(3) DCR shall process Applications or renewals from Social Equity Applicants in accordance with Subsections (a) or (b) before processing an Application or renewal from non-Social Equity Applicants.
(ii) Fee Deferral Program. DCR shall administer the Fee Deferral Program based on requirements and restrictions established in the Rules and Regulations. Participation in the Fee Deferral Program may be subject to the availability of resources.
(iii) Business, Licensing and Compliance Assistance. DCR shall provide Business, Licensing and Compliance Assistance through programming and curriculum development and training in the areas of state and local licensing requirements, commercial cannabis regulations, general business development, cannabis-specific business development and workforce development.
(iv) Financial Grant Program. DCR shall administer the Financial Grant Program based on requirements and restrictions established in the Rules and Regulations. Participation in this Financial Grant Program may be subject to the availability of resources.
(v) Ancillary Business Costs. Social Equity Applicants may receive security, management, equipment and other ancillary business costs provided by a Tier 3 Applicant pursuant to a Social Equity Agreement as defined in Section 104.20(c)(3). Participation may be subject to the availability of resources.
(vi) Education and Training. Social Equity Applicants may receive a minimum of 50 hours per year in business development, education and training provided by a Tier 3 Applicant pursuant to a Social Equity Agreement as defined in Section 104.20(c)(3). Education and training provided by Tier 3 Applicants may include: accounting, inventory management, payroll practices, tax preparation, employee recruitment, retention and workforce outreach, and reporting requirements training. Participation may be subject to the availability of resources.
(vii) Property. Social Equity Applicants may receive Property as specified in Section 104.20(c)(3) provided by a Tier 3 Applicant. Participation may be subject to the availability of resources.
(Amended by Ord. No. 186,703, Eff. 7/10/20.)
(a) A Licensee shall provide to DCR a copy of all written agreements and contracts, including all amendments thereto, with every Management Company that manages Commercial Cannabis Activity on its behalf and all other information and documents DCR requires to determine the nature and scope of a Management Company’s participation in Commercial Cannabis Activity.
(b) DCR may prohibit a Licensee from permitting a Management Company to manage Commercial Cannabis Activity on the Licensee’s behalf if:
2. DCR or another Cannabis licensing authority has determined that the Management Company has failed to comply with State or City operating requirements while managing Commercial Cannabis Activity; or
3. The Management Company cannot manage Commercial Cannabis Activity on behalf of any additional Licensees pursuant to the restrictions set forth in Section 104.21(f).
(c) Every Management Company shall register with DCR pursuant to procedures established by DCR and provide DCR all requested information and documents regarding its participation in Commercial Cannabis Activity in the City.
(d) A Management Company shall not hold an equity interest in a Licensee on whose behalf it manages Commercial Cannabis Activity. Notwithstanding the foregoing restriction, a Management Company may receive a share of a Licensee’s revenues or profits in exchange for management services rendered, subject to limitations established by DCR.
(e) A Management Company shall manage Commercial Cannabis Activity on a Licensee’s behalf in adherence to the operational requirements in this article and the Rules and Regulations that apply to the License type. In construing and enforcing this article and the Rules and Regulations, any act, omission, or failure of a Management Company, including its officers, Employees and agents, shall in every case be deemed the act, omission, or failure of the Licensee.
(f) Every Management Company shall be subject to the following restrictions:
1. Through June 30, 2019, a Management Company shall not manage Commercial Cannabis Activity on behalf of more than three percent of the Licensees in the City engaged in the same type of Commercial Cannabis Activity;
2. From July 1, 2019, through June 30, 2020, a Management Company shall not manage Commercial Cannabis Activity on behalf of more than four percent of the Licensees in the City engaged in the same type of Commercial Cannabis Activity;
3. From July 1, 2020, through June 30, 2021, a Management Company shall not manage Commercial Cannabis Activity on behalf of more than five percent of the Licensees in the City engaged in the same type of Commercial Cannabis Activity;
4. From July 1, 2021, through June 30, 2022, a Management Company shall not manage Commercial Cannabis Activity on behalf of more than six percent of the Licensees in the City engaged in the same type of Commercial Cannabis Activity; and
5. On or after July 1, 2022, a Management Company shall not manage Commercial Cannabis Activity on behalf of more than seven percent of the Licensees in the City engaged in the same type of Commercial Cannabis Activity.
(Amended by Ord. No. 186,703, Eff. 7/10/20.)
(a) DCR shall develop criteria and guidelines for Cannabis Corporate Responsibility Reports (Report). DCR shall post the criteria, guidelines and any amendments on its website.
(b) Prior to the issuance of a License or renewal pursuant to Section 104.12, a Licensee shall submit to DCR a Report that describes the Licensee’s community engagement, corporate philanthropy, relationship with the neighborhood surrounding the Licensee’s Business Premises, and compliance with applicable City and State Cannabis laws and regulations within the previous calendar year. If a Licensee fails to timely submit a Report, DCR may impose administrative penalties or order corrective action as provided in Section 104.13(b). Reports may be publicly disclosed, including but not limited to posting on DCR’s website.
(c) If a Licensee holds Licenses for multiple Business Premises, the Licensee shall submit a separate Report for each Business Premises.
(Amended by Ord. No. 187,562, Eff. 7/6/22.)
(a) Purpose.
1. Unlicensed cannabis businesses threaten the health and safety of cannabis consumers by selling products that are cultivated, manufactured, prepared, and processed outside of the regulated cannabis marketplace. These products are tainted, contaminated, mislabeled, unlabeled, or misbranded, and may cause serious injury or illness if consumed. Unlicensed and unregulated cannabis stores harm the peace, comfort, and welfare of communities and people who live and work nearby. These stores are more likely to operate outside of proscribed hours of operation without meeting locational and operational standards, and are more likely to sell cannabis in quantities that exceed legal limits and sell cannabis to minors in violation of applicable law.
2. Cannabis consumers must be informed whether a retail cannabis business is unlicensed before having to enter the premises and must understand the health risks and consequences of shopping at an unlicensed cannabis business. This knowledge and understanding empowers consumers to make smart choices to protect their health and safety. Communities will also benefit from a reduction in the number of unlicensed cannabis stores.
3. The Emblem Program for Authorized Cannabis Stores (Program) is administered by the County of Los Angeles in partnership with cities within the County of Los Angeles as a cross-jurisdictional effort to deter the operation of unlicensed cannabis businesses. The Program is intended to protect consumers and stop harmful effects caused by unlicensed and unregulated cannabis businesses on local neighborhoods and communities by requiring retail cannabis businesses that have received all appropriate licenses, permits, or authorizations from the State of California and local governments to both display a unique emblem on the Business Premises so that it is highly visible to the public from the exterior of the store.
4. The Program is not intended to promote the use, possession, distribution, manufacturing, sale, or cultivation of cannabis or cannabis products, or to engage in any actions that conflict with any applicable local, state, or federal laws.
(b) Definitions.
1. “Authorized Cannabis Store” means a Licensee engaged in onsite retail sales of medical or adult-use cannabis to customers at a Business Premises location, provided:
(i) The Licensee has obtained a Type 10 (Retailer) or Type 12 (Microbusiness) License or Temporary Approval from the City, and a license or provisional license from the State of California for the same activity or activities;
(ii) The Licensee has obtained all licenses, permits, or authorizations required by the City and any other local agencies necessary to allow the business to engage in the sale of medical or adult-use cannabis; and
(iii) The Licensee keeps all applicable licenses, permits, or authorizations current and valid, and remains in good standing to engage in the sale of medical or adult-use cannabis in the City.
2. “Emblem” means the emblem featured on the Emblem Placard issued to an Authorized Cannabis Store by the Program Administrator as part of the Program.
3. “Emblem Placard” means a placard displaying the Emblem and other required information issued to an Authorized Cannabis Store by the Program Administrator as part of the Program that notifies the public that the store has received all required state and local licenses, permits, or other authorizations to become an Authorized Cannabis Store.
4. “Health Information Advisory” means the pamphlet, paper, or other media provided to the Authorized Cannabis Store by the Program Administrator that contains health information messages, regarding cannabis use and its potential health impacts, created by the Department of Public Health.
5. “Program” means the Emblem Program for Authorized Cannabis Stores.
6. “Program Administrator” means the Director of the Los Angeles County Department of Public Health, or the Director’s designee.
(c) Emblem – Significance. The Emblem, when displayed on the Emblem Placard shall serve as notice to the public that the commercial cannabis business to which the Emblem Placard was issued is an Authorized Cannabis Store at the time of issuance and is in compliance with all applicable public health laws and regulations as determined during the most recent Public Health inspection. The Emblem and Emblem Placard shall not grant any rights or remedies, and shall not be construed as granting any rights or remedies, to any person or entity in possession of the Emblem or Emblem Placard. The Emblem and Emblem Placard may not be sold, assigned, or otherwise transferred, and shall not be removed from the premises of the Authorized Cannabis Store to which the Emblem Placard was issued, except as specified in this ordinance. The Emblem Placard shall not create, confer or convey any vested or nonconforming right or benefit, including the right to engage in Commercial Cannabis Activity, to any Person in possession of the Emblem Placard.
(d) Emblem Placard – Issuance, Posting, Inspection, Suspension, and Revocation.
1. Issuance. The Program Administrator shall cause an Emblem Placard to be issued to all Authorized Cannabis Stores.
2. Posting. The Program Administrator shall cause the Emblem Placard to be posted at the Business Premises so as to be clearly visible to the general public and to patrons entering the Business Premises by posting the Emblem Placard in the front window of the retail business within five (5) feet of the front door, in a display case mounted to the outside front wall of the store within five (5) feet of the front door, or in another location as directed and determined in the discretion of the Program Administrator to ensure proper notice to the general public and to patrons.
(i) An Authorized Cannabis Store shall, at its sole cost, make any reasonable modifications to the exterior or interior of its Business Premises that the Program Administrator determines are necessary to accommodate the posting of the Emblem Placard, including, but not limited to, modifications to lighting, window treatments, coverings, tinting, glazing, and painting, and the mounting of a display case on the exterior of the Business Premises.
(ii) An Authorized Cannabis Store shall not alter, move, remove, or otherwise modify an Emblem Placard posted at its Business Premises pursuant to this section unless ordered or authorized to do so in writing by the Program Administrator.
3. Inspection. Not less than once per year, the Program Administrator shall cause an inspection to take place at the premises of an Authorized Cannabis Store to ensure the Emblem Placard is displayed and the Health Information Advisory is provided or made accessible to consumers in compliance with the provisions of this ordinance. Inspections shall take place during ordinary business hours and may be unannounced. The Program Administrator may conduct an inspection more than once per year if the Program Administrator determines more frequent inspections are necessary to ensure compliance with the Program. Inspections may be conducted in conjunction with or separately from other regular inspections.
4. Suspension. Upon a determination by the Program Administrator that a Licensee ceases to keep all applicable licenses, permits, or authorizations current, valid, and in good standing, the Program Administrator may immediately suspend the Licensee’s participation in the Program. Written notice will be provided to the Licensee detailing the reason for the suspension, along with instructions for reinstatement. The Emblem Placard will be removed by the Program Administrator, or an authorized representative, until the Licensee takes the necessary steps for reinstatement into the Program.
5. Revocation. Upon a determination by the Program Administrator that a Licensee ceases to be an Authorized Cannabis Store for any reason, the Program Administrator shall immediately issue an order in writing to the store to remove the Emblem Placard from public view and return the Emblem Placard to the Program Administrator, or provide other evidence satisfactory to the Program Administrator that the Emblem Placard has been destroyed. The Program Administrator’s determination shall be final and not subject to appeal. If an Authorized Cannabis Store’s Temporary Approval or License is revoked, suspended, canceled, or not renewed, the Licensee shall immediately remove the Emblem Placard from public view.
(e) Health Information Advisory. An Authorized Cannabis Store, at the direction of the Program Administrator, shall provide or make accessible to the consumer a Health Information Advisory created by the Los Angeles County Department of Public Health. The Health Information Advisory shall be supplied by the Program Administrator. An Authorized Cannabis Store shall provide the Health Information Advisory to the consumer at the point of sale. The Program Administrator may also supply Health Information Advisory materials in pamphlet or other written form to an Authorized Cannabis Store, and require those materials be displayed and made accessible to consumers.
(f) Violations.
1. It shall be unlawful for any person to engage in the retail sale of medical or adult-use cannabis or cannabis products in the City unless it is an Authorized Cannabis Store and displays an Emblem Placard in compliance with the provisions of this ordinance.
2. Notwithstanding the requirement in Subdivision 1., a Business Premises with a License or Temporary Approval to conduct Storefront Retail Commercial Cannabis Activity may operate without an Emblem Placard until January 1, 2025.
3. It shall be a misdemeanor and an unfair business practice subject to criminal and civil enforcement to display or use the Emblem or Emblem Placard, or any placard, symbol, or rendering that is substantially or confusingly similar to the Emblem or Emblem Placard, in connection with any commercial cannabis activity for the purpose of falsely holding oneself out as an Authorized Cannabis Store.
4. City and the Program Administrator may conduct inspections of any commercial cannabis business displaying the Emblem or Emblem Placard, or a substantially or confusingly similar Emblem or Emblem Placard, on its premises, for the purposes of determining whether the store is an Authorized Cannabis Store.
5. Where City and County laws conflict, commercial cannabis businesses shall comply with all City laws, rules, and regulations unless the issue directly relates to matters of public health that are regulated by the County pursuant to this Program.
(Added by Ord. No. 185,345, Eff. 12/19/17.)
Section
105.00 Purposes and Intent.
105.01 Definitions.
105.02 Location and Other Requirements for Commercial Cannabis Activity.
105.03 Limited Grandfathering of Existing Medical Marijuana Dispensaries.
105.04 No Authority to Permit Use in Any Zone.
105.05 No Vested or Nonconforming Rights.
105.06 Unlawful Cannabis Activity.
105.07 No Conflict with State Law.
105.08 No Conflict with Federal Law.
(Added by Ord. No. 185,345, Eff. 12/19/17.)
The purpose of this article is to stem the negative impacts and secondary effects associated with Cannabis related activities in the City, including, but not limited to, those documented in case law and in the legislative histories of cannabis regulations in the City, including but not limited to: neighborhood disruption and intimidation caused in part by increased transient visitors; exposure of school-age children and other residents sensitive to cannabis; cannabis sales to minors; and violent crimes.
This article is part of the City’s first comprehensive set of regulations addressing Commercial Cannabis Activity in the City. The purpose of this article is to strike a balance to protect local communities and neighborhoods from the known negative effects of cannabis activities, while also to provide for Commercial Cannabis Activity recognized by State law. This article may be reviewed by the City within four years after its adoption with the purpose to determine whether the public health, welfare, and safety would be served by either expanding or restricting the locations where Commercial Cannabis Activity occurs.
This article is not intended to conflict with federal or state law. It is the intention of the City Council that this article be interpreted to be compatible with federal and state
enactments and in furtherance of the public purposes that those enactments encompass.
(Added by Ord. No. 185,345, Eff. 12/19/17.)
“Alcoholism or Drug Abuse Recovery or Treatment Facility” means any non-medical alcoholism and drug abuse recovery or treatment facilities licensed or certified by the State of California Department of Health Care Services to provide residential non-medical services to individuals who are recovering from problems related to alcohol, drug, or alcohol and drug misuse or abuse, and who need alcohol, drug, or alcohol and drug recovery treatment or detoxification services. (Amended by Ord. No. 187,094, Eff. 7/1/21.)
“Applicant” means an Applicant as defined in Section 104.01 of this Code. (Added by Ord. No. 187,094, Eff. 7/1/21.)
“Application Date” means the date the Applicant pays all Pre-Application Review or Modification Request Form Review fees associated with a Business Premises relocation request, whichever is applicable, required under Los Angeles Municipal Code Section 104.19. (Added by Ord. No. 187,094, Eff. 7/1/21.)
“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.
“Cannabis” means Cannabis as defined in Section 26001 of the California Business and Professions Code, included in the Medicinal and Adult Use Cannabis Regulation and Safety Act, as currently defined or as may be amended.
“City” means the City of Los Angeles.
“Commercial Cannabis Activity” includes the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery or sale of cannabis and cannabis products as provided for in Division 10 of the California Business and Professions Code as implemented by the California Code or Regulations, as currently defined or as may be amended.
“Day Care Center” means a child care-infant center, child care center, or child care center preschool licensed by the State of California Department of Social Services that is not located on a residential zoned property. (Amended by Ord. No. 187,094, Eff. 7/1/21.)
“EMMD” means an existing medical marijuana dispensary that is in compliance with all restrictions of Proposition D, notwithstanding those restrictions 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 application is deemed complete.
“Permanent Supportive Housing” means Supportive Housing as defined in the Draft Permanent Supportive Housing Ordinance initiated August 30, 2017, CPC-2017-3136-CA, as may hereafter be adopted or amended, to include housing with no limit on length of stay that is occupied by persons with low incomes who have one or more disabilities and may include, among other populations, adults, emancipated minors, families with children, elderly persons, young adults aging out of the foster care system, individuals exiting from institutional settings, veterans, and homeless people, but only to the extent such Permanent Supportive Housing provides on-site Supportive Services. As may hereafter be adopted or amended, Supportive Services means services that are provided on a voluntary basis to residents of Supportive Housing, including, but not limited to, a combination of subsidized, permanent housing, intensive case management, medical and mental health care, substance abuse treatment, employment services, benefits advocacy, and other services or service referrals necessary to obtain and maintain housing.
“Public Library” means a place in which literary, musical, artistic, or reference materials, such as books, manuscripts, newspapers, recordings, or films, are kept for use but not for sale, which is under the control, operation or management of the City Board of Library Commissioners, and which allows access to members of the public.
“Public Park” means an open space, park, playground, swimming pool, beach, pier, reservoir, golf course, or similar recreational facility, which is under the control, operation or management of the City Board of Recreation and Park Commissioners; the Santa Monica Mountains Conservancy; the Mountains Recreation and Conservation Authority; the County of Los Angeles Department of Beaches and Harbors; the County of Los Angeles Department of Parks and Recreation; the California Department of Parks and Recreation; or the National Park Service; and shall further include any property in the City of Los Angeles zoned Open Space (“OS”) as defined under Section 12.04.05 of the Los Angeles Municipal Code that is maintained or operated as a parks and recreation facility, including bicycle trails, equestrian trails, walking trails, nature trails, park land/lawn areas, children’s play areas, child care facilities, picnic facilities, and athletic fields used for park and recreation purposes. (Amended by Ord. No. 187,094, Eff. 7/1/21.)
“Publicly Available” in reference to a Sensitive Use, means identified on an official list posted on one of the following official websites maintained by or on behalf of the following respective responsible governmental agencies. This list of official websites may hereinafter be amended as necessary by DCR’s Rules and Regulations. (Added by Ord. No. 187,094, Eff. 7/1/21.)
(a) Alcoholism or Drug Abuse Recovery or Treatment Facilities shall be identified on the official website for the California Department of Health Care Services;
(b) Day Care Centers shall be identified on the official website for the California Department of Social Services;
(c) Public Libraries shall be identified on the official website for the Los Angeles Public Library;
(d) Public Parks shall be identified on the official website for the City of Los Angeles Department of Recreation and Parks;
(e) Schools shall be identified on the official website for the California Department of Education; and
(f) Permanent Supportive Housing shall be identified on the City’s Open Data Portal list titled “HCIDLA Affordable Housing Projects List (2003 to Present)”, or as may be amended.
“Residentially Zoned Property” means any lot located in the RA Suburban Zone, RE Residential estate Zone, RS Suburban Zone, R1 One-Family Zone, RU Residential Urban Zone, RZ Residential Zero Side Yard Zone, RW1 Residential Waterways Zone, R2 Two-Family Zone, RD Restricted Density Multiple Dwelling Zone, RMP Mobilehome Park Zone, RW2 Residential Waterways Zone, R3 Multiple Dwelling Zone, RAS3 Residential / Accessory Services Zone, R4 Multiple Dwelling Zone, RAS4 Residential / Accessory Services Zone, or R5 Multiple Dwelling Zone.
“School” means an institution of learning for minors, whether public or private, which offers in- person instruction in grades K through 12 in those courses of study required by the California Education Code, and is licensed by the State Board of Education. This definition includes kindergarten, elementary, junior high, senior high or any special institution of learning under the jurisdiction of the State Department of Education, but it does not include a vocational or professional institution or an institution of higher education, including a community or junior college, college or university. (Amended by Ord. No. 187,094, Eff. 7/1/21.)
“Sensitive Use” means an Alcoholism or Drug Abuse Recovery or Treatment Facility, Day Care Center, Public Library, Public Park, School, and/or Permanent Supportive Housing. (Added by Ord. No. 187,094, Eff. 7/1/21.)
“Verification Date” means the first business day of the calendar quarter beginning February 1, May 1, August 1, or November 1, which immediately precedes the Application Date. (Added by Ord. No. 187,094, Eff. 7/1/21.)
(Added by Ord. No. 185,345, Eff. 12/19/17.)
The Commercial Cannabis Activity described in Subsections (a)1. - (a)7. shall be limited to such activity conducted by a person licensed by the state of California and the City to engage in such Commercial Cannabis Activity described in this article.
The Commercial Cannabis Activity described in Subsections (a)1. - (a)7. shall not be required to comply with the distance restriction from a school, day care center, or youth center stated in Business and Professions Code Section 26054. In place and stead of these State law distance and sensitive use restrictions, the Commercial Cannabis Activity shall be required to meet the distance and sensitive use restrictions stated in this article.
(a) Commercial Cannabis Activity.
1. Retailer Commercial Cannabis Activity. Commercial Cannabis Activity falling under the category “Type 10 - Retailer” in Section 26050 of the California Business and Professions Code or “Type 9 - Non-Storefront Retailer” in California Code of Regulations Title 16 Division 42 Chapter 3 Section 5414; only to the extent such commercial activity is located and occurring:
(A) Within any of the following zones:
(1) Chapter 1 of the Los Angeles Municipal Code: C1 Limited Commercial Zone, C1.5 Limited Commercial Zone, C2 Commercial Zone, C4 Commercial Zone, C5 Commercial Zone, CM Commercial Manufacturing Zone, M1 Limited Industrial Zone, M2 Light Industrial Zone, or M3 Heavy Industrial Zone, under Chapter 1 of the Los Angeles Municipal Code; or
(2) Commercial Manufacturing (Glencoe/Maxella) Zone: CM(GM) Zone under the Glencoe/Maxella Specific Plan; or
(3) Central City West Specific Plan Zone: RC4(CW) Residential Mixed-Use Category, RC5(CW) Residential Mixed-Use Category, C1(CW) Limited Commercial Category, C2(CW) Commercial Category, C4(CW) Commercial Category, or CM(CW) Commercial Manufacturing Category, under the Central City West Specific Plan; or
(4) Warner Center Specific Plan Zone: WC Warner Center Specific Plan Zone where “Retail Store, general merchandise” or “Hybrid Industrial” uses are permitted under the Warner Center Specific Plan; or
(5) Los Angeles Sports and Entertainment District Specific Plan Zone: LASED Los Angeles Sports and Entertainment District Specific Plan Zone under the Los Angeles Sports and Entertainment District Specific Plan; or
(6) Playa Vista Specific Plan Zone: M(PV) Industrial Zone and M2(PV) Industrial Zone under the Playa Vista Specific Plan; or
(7) Paramount Pictures Specific Plan Zone: Paramount Pictures Specific Plan Zone within the Lemon Grove Lot (Parcels A and B), South Bronson Lot, Windsor Lot, Camerford Lot, Waring Lot, and Gregory Lot (Parcels A and B) under the Paramount Pictures Specific Plan; or
(8) USC Specific Plan Zone: USC Specific Plan Zone within Subarea 3 under the USC Specific Plan; or
(9) Jordan Downs Urban Village Specific Plan Zone: CM(UV) Commercial Manufacturing Zone under the Jordan Downs Urban Village Specific Plan; or
(10) Cornfield-Arroyo Seco Specific Plan Zone: UC(CA) Urban Center, UI(CA) Urban Innovation, UV(CA) Urban Village Zones under the Cornfield-Arroyo Seco Specific Plan; and
(B) Outside of a 700-foot radius of a Sensitive Use; and outside of a 700-foot radius of any other Retailer or Microbusiness Commercial Cannabis Activity, having on-site retail sales, which is licensed by the City to engage in the Commercial Cannabis Activity or for which Temporary Approval Application or Business Premises Relocation fees, whichever is applicable, are paid pursuant to Los Angeles Municipal Code Section 104.19. (Amended by Ord. No. 187,094, Eff. 7/1/21.)
Exception. Type 9 - Non- Storefront Commercial Cannabis Activity shall not be required to locate outside of a 700-foot radius of a Public Park, Public Library, Alcoholism or Drug Abuse Recovery or Treatment Facility, Day Care Center, and Permanent Supportive Housing; or outside of a 700-foot radius of any other Retailer or Microbusiness Commercial Cannabis Activity having onsite retail sales, which is licensed by the state of California and licensed by the City to engage in the Commercial Cannabis Activity. Type 9 - Non-Storefront Commercial Cannabis Activity shall be required to locate outside of a 600- foot radius of a School. (Amended by Ord. No. 187,094, Eff. 7/1/21.)
2. Microbusiness Commercial Cannabis Activity. Commercial Cannabis Activity falling under the category “Type 12 - Microbusiness” in Section 26050 of the California Business and Professions Code, only to the extent such commercial activity is located and occurring:
(A) Within any of the following zones:
(1) Chapter 1 of the Los Angeles Municipal Code: M1 Limited Industrial Zone, M2 Light Industrial Zone, or M3 Heavy Industrial Zone, under Chapter 1 of the Los Angeles Municipal Code. Type 12 - Microbusiness Commercial Cannabis Activity that does not engage in retail activity with on-site sales may further locate in the MR1 Restricted Industrial Zone and MR2 Restricted Light Industrial Zone under Chapter 1 of the Los Angeles Municipal Code; or
(2) Warner Center Specific Plan Zone: WC Warner Center Specific Plan Zone where “Hybrid Industrial” uses are permitted under the Warner Center Specific Plan; or
(3) Playa Vista Specific Plan Zone: M(PV) Industrial Zone, and M2(PV) Industrial Zone under the Playa Vista Specific Plan; or
(4) Cornfield-Arroyo Seco Specific Plan Zone: UC(CA) Urban Center, UI(CA) Urban Innovation, UV(CA) Urban Village Zones under the Cornfield-Arroyo Seco Specific Plan; and
(B) Outside of a 700-foot radius of a Sensitive Use; and outside of a 700-foot radius of any other Retailer or Microbusiness Commercial Cannabis Activity, having on-site retail sales, which is licensed by the City to engage in the Commercial Cannabis Activity or for which Temporary Approval Application or Business Premises Relocation fees, whichever is applicable, are paid pursuant to Los Angeles Municipal Code Section 104.19. (Amended by Ord. No. 187,094, Eff. 7/1/21.)
Exception. Any Microbusiness Commercial Cannabis Activity with sales to the public limited to off-site deliveries and having no on-site sales shall not be required to locate outside of a 700-foot radius of a Public Park, Public Library, Alcoholism or Drug Abuse Recovery or Treatment Facility, Day Care Center, and Permanent Supportive Housing; or outside of a 700-foot radius of any other Retailer or Microbusiness Commercial Cannabis Activity having on-site retail sales, which is licensed by the state of California and licensed by the City to engage in the Commercial Cannabis Activity. Any Microbusiness Commercial Cannabis Activity with sales to the public limited to off-site deliveries and having no on-site sales shall be required to locate outside of a 600- foot radius of a School. (Amended by Ord. No. 187,094, Eff. 7/1/21.)
3. Indoor Commercial Cannabis Cultivation Activity. Commercial Cannabis Activity falling under the category “Type 1A - Cultivation; Specialty indoor, Small”; “Type 1C - Cultivation, Specialty cottage, Small,” limited to indoor cultivation; “Type 2A - Cultivation; Indoor, Small”; “Type 3A - Cultivation; Indoor, Medium”; “Type 4 - Cultivation; Nursery,” limited to indoor cultivation; or “Type 5A - Cultivation; Indoor, Large,” in Section 26050 of the California Business and Professions Code; or “Processor” cultivation license in California Code of Regulations Title 3 Division 8 Chapter 1 Section 8201(f), limited to indoor processing; only to the extent such commercial activity is located and occurring:
(A) Within any of the following zones:
(2) Warner Center Specific Plan Zone: WC Warner Center Specific Plan Zone where “Hybrid Industrial” uses are permitted under the Warner Center Specific Plan; or
(3) Playa Vista Specific Plan Zone: M(PV) Industrial Zone, and M2(PV) Industrial Zone under the Playa Vista Specific Plan; or
(4) Cornfield-Arroyo Seco Specific Plan Zone: UC(CA) Urban Center, UI(CA) Urban Innovation, UV(CA) Urban Village Zones under the Cornfield-Arroyo Seco Specific Plan; and
(B) Outside of a 600-foot radius of a School.
4. Level 1 Manufacturing Commercial Cannabis Activity. Commercial Cannabis Activity falling under the category “Type 6 - Manufacturer 1" in Section 26050 of the California Business and Professions Code; or “Type N” or “Type P” in California Code of Regulations, Title 17, Division 1, Chapter 13, Section 40118; only to the extent such commercial activity is located and occurring:
(A) Within any of the following zones:
(2) Warner Center Specific Plan Zone: WC Warner Center Specific Plan Zone where “Hybrid Industrial” uses are permitted under the Warner Center Specific Plan; or
(3) Playa Vista Specific Plan Zone: M(PV) Industrial Zone, and M2(PV) Industrial Zone under the Playa Vista Specific Plan; or
(4) Cornfield-Arroyo Seco Specific Plan Zone: UC(CA) Urban Center, UI(CA) Urban Innovation, UV(CA) Urban Village Zones under the Cornfield-Arroyo Seco Specific Plan; and
(B) Outside of a 600-foot radius of a School.
5. Level 2 Manufacturing Commercial Cannabis Activity. Commercial Cannabis Activity falling under the category “Type 7 - Manufacturer 2" in Section 26050 of the California Business and Professions Code, only to the extent such commercial activity is located and occurring:
(A) Within any of the following zones:
(2) Warner Center Specific Plan Zone: WC Warner Center Specific Plan Zone where “Hybrid Industrial” uses are permitted under the Warner Center Specific Plan; or
(3) Playa Vista Specific Plan Zone: M(PV) Industrial Zone, and M2(PV) Industrial Zone under the Playa Vista Specific Plan; and
(B) Outside of a 600-foot radius of a School; and
(C) Outside of a 200-foot radius of any Residentially Zoned Property.
6. Testing Commercial Cannabis Activity. Commercial Cannabis Activity falling under the category “Type 8 - Testing” in Section 26050 of the California Business and Professions Code, only to the extent such commercial activity is located and occurring:
(A) Within any of the following zones:
(2) Commercial Manufacturing (Glencoe/Maxella) Zone: CM(GM) Zone under the Glencoe/Maxella Specific Plan; or
(3) Central City West Specific Plan Zone: CM(CW) Commercial Manufacturing Category under the Central City West Specific Plan; or
(4) Warner Center Specific Plan Zone: WC Warner Center Specific Plan Zone where “Hybrid Industrial” uses are permitted under the Warner Center Specific Plan; or
(5) Playa Vista Specific Plan Zone: M(PV) Industrial Zone, and M2(PV) Industrial Zone under the Playa Vista Specific Plan; or
(6) Jordan Downs Urban Village Specific Plan Zone: CM(UV) Commercial Manufacturing Zone under the Jordan Downs Urban Village Specific Plan; or
(7) Cornfield-Arroyo Seco Specific Plan Zone: UC(CA) Urban Center, UI(CA) Urban Innovation, UV(CA) Urban Village Zones under the Cornfield-Arroyo Seco Specific Plan; and
(B) Outside of a 600-foot radius of a School.
7. Distributor Commercial Cannabis Activity. Commercial Cannabis Activity falling under the category “Type 11 - Distributor” in Section 26050 of the California Business and Professions Code, only to the extent such commercial activity is located and occurring:
(A) Within any of the following zones:
(2) Warner Center Specific Plan Zone: WC Warner Center Specific Plan Zone where “Hybrid Industrial” are permitted under the Warner Center Specific Plan; or
(3) Playa Vista Specific Plan Zone: M(PV) Industrial Zone, and M2(PV) Industrial Zone under the Playa Vista Specific Plan; or
(4) Cornfield-Arroyo Seco Specific Plan Zone: UC(CA) Urban Center, UI(CA) Urban Innovation, UV(CA) Urban Village Zones under the Cornfield-Arroyo Seco Specific Plan; and
(B) Outside of a 600-foot radius of a School.
(b) The distance specified in this section between Commercial Cannabis Activity businesses shall be the horizontal distance measured in a straight line, without regard to intervening structures, from the closest exterior wall of each business. The distance between any Commercial Cannabis Activity business, and any Sensitive Use with exclusive use of the parcel upon which it is located, shall be the horizontal distance measured in a straight line, without regard to intervening structures, from the closest exterior wall of the Commercial Cannabis Activity business to the closest parcel boundary of the Sensitive Use. The distance between any Commercial Cannabis Activity business and any Sensitive Use without exclusive control of the parcel upon which it located, shall be the horizontal distance measured in a straight line, without regard to intervening structures, from the closest exterior wall of the Commercial Cannabis Activity business to the closest exterior wall or fence under the control of the Sensitive Use, excluding parking lots. (Amended by Ord. No. 187,094, Eff. 7/1/21.)
(c) An Applicant’s proposed Business Premises location shall be deemed compliant with the required distances specified in Section 105.02 from Sensitive Uses if the proposed Business Premises location complies with the required distances from all Sensitive Uses that are Publicly Available to the Department of Cannabis Regulation on the Verification Date. Any Sensitive Use not Publicly Available to the Department of Cannabis Regulation on the Verification Date shall not disqualify an Applicant’s proposed Business Premises location. This Subsection 105.02(c) shall apply to pending applications for which Temporary Approval Application Fees have been paid pursuant to Los Angeles Municipal Code Section 104.19, provided that the proposed Business Premises location complies with the required distances from all Sensitive Uses that are Publicly Available to the Department of Cannabis Regulation on the effective date of this ordinance. (Amended by Ord. No. 187,094, Eff. 7/1/21.)
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