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(Amended by Ord. No. 187,879, Eff. 6/2/23.)
(a) Violations of this Article. Within five years of discovering a Licensee has violated this article, the Rules and Regulations, or a License condition, DCR may issue a Notice to Correct (NTC), Notice of Violation (NOV), Notice of Suspension (NOS), or Notice of Revocation (NOR). DCR may impose administrative penalties or order corrective actions pursuant to Subsection (b). DCR’s action does not preclude any other agency from taking its own enforcement action for violation of any local, state or federal law or regulation.
(b) Administrative Penalties and Corrective Actions.
1. Administrative Penalties. In addition to any of the remedies and penalties set forth in this article or any other law, DCR may impose administrative penalties on a Licensee using the violation classifications in the Rules and Regulations and the fine amounts specified in Section 104.19. Repeat violations may result in escalation to a higher class of violation.
2. Reduction in Penalties or Extension of Time to Comply. DCR, in its sole discretion, may impose a reduced administrative penalty or consider an extension of time to comply with an NTC or NOV, including the payment of any associated penalties, after considering the following factors: (1) the extent of harm or potential harm caused by the violation; (2) the nature and persistence of the violation; (3) the length of time over which the violation occurred; (4) the history of past violations; (5) any mitigating evidence; and (6) the Licensee’s financial resources.
3. More Restrictive License Conditions. In addition to any of the remedies and penalties set forth in this article or any other law, DCR, in its sole discretion, may impose more restrictive License conditions after considering the following factors: (1) the extent of harm or potential harm caused by the violation; (2) the nature and persistence of the violation; (3) the length of time over which the violation occurred; (4) the history of past violations; and (5) any mitigating evidence.
4. Corrective Action. In addition to any of the remedies and penalties set forth in this article or any other law, DCR may order a Licensee to undertake corrective action to remedy the violation or prevent future violations by issuing a NTC or NOV pursuant to Subsections (c) and (d).
(c) Notice to Correct (NTC).
1. DCR may issue a NTC if DCR discovers that a Licensee has made modifications without DCR’s prior approval, including but not limited to: (1) modifications to the fictitious name or DBA, or the failure to submit fictitious name or DBA; (2) modifications to Owners and/or Primary Personnel, or the failure to disclose all Owners and/or Primary Personnel; and (3) any other violation of the Rules and Regulations that DCR deems appropriate in its sole discretion. DCR shall issue a NTC by electronic mail to the Licensee. There is no administrative penalty associated with a NTC. The NTC shall contain all of the following:
(i) a brief description of the unapproved modification or violation;
(ii) a brief description of the corrective action required; and
(iii) a timeframe in which the Licensee shall take corrective action.
2. DCR may issue a NOV, including administrative penalties, if the Licensee does not comply with a NTC within 30 days. A Licensee may request an extension pursuant to Subsection (b).
(d) Notice of Violation (NOV).
1. DCR may issue a NOV for any violation of this article or the Rules and Regulations. DCR shall issue a NOV by electronic mail to the Licensee. The NOV shall contain all of the following:
(i) a brief description of the violation;
(ii) a brief description of, and rationale for, the administrative penalties and corrective action, if any, imposed;
(iii) a timeframe in which the Licensee shall take corrective action and/or comply with the administrative penalties, if any, which shall not be sooner than 15 days from the date DCR sent the NOV by electronic mail; and
(iv) information on how the Licensee may request an administrative hearing pursuant to Section 104.14.
2. The Licensee shall request any administrative hearing within 15 days of the date DCR sent the NOV by electronic mail. The NOV shall include an invoice for the relevant administrative appeal fee, pursuant to Section 104.19, which shall be due within 15 days from the date the invoice was issued.
3. If no appeal is requested, the NOV shall be final and effective 15 days after the date the NOV was sent by electronic mail to the Licensee. DCR shall issue an invoice for the associated administrative penalty or fine, if any, which shall be due 30 days from the date the invoice was issued.
4. If a hearing is requested, the determination issued by the hearing officer shall be final and effective on the date the determination is sent by electronic mail and U.S. mail to the Licensee. An invoice for outstanding penalties or fines, if any, shall be sent with the hearing officer’s determination and shall be paid within 30 days of the date the invoice was issued, unless otherwise specified in the hearing officer’s determination. Any corrective action required of the Licensee shall be completed within 30 days of the date that the final determination is sent to the Licensee, unless otherwise specified in the hearing officer’s determination.
5. If, after a NOV becomes final and effective, a Licensee fails to comply with any administrative penalties and/or corrective action in the NOV, DCR may take one or more of the following actions: (1) denial of a License renewal; (2) imposition of more restrictive License conditions; (3) issuance of another or escalating NOV; or (4) suspension or revocation of a License or Operating Permit pursuant to Subsection (e).
6. Stipulated Agreements. Prior to or after issuing a NOV, DCR, in its sole discretion, may enter into a written agreement with a Licensee whereby the Licensee stipulates to committing a violation in exchange for a negotiated administrative penalty or corrective action. If a Licensee violates a stipulated agreement, DCR may issue or re-issue a NOV and impose any administrative penalties authorized under this section or the Rules and Regulations.
(e) Suspension or Revocation of Temporary Approval, Annual License, or Operating Permit.
1. Notice of Suspension. In addition to any of the remedies and penalties set forth in this article or any other law, DCR may suspend Temporary Approval, an Annual License and/or an Operating Permit by issuing a Notice of Suspension for the reasons listed in Section 104.04(e). The Licensee may request an administrative hearing pursuant to Section 104.14. DCR may reinstate the Temporary Approval, Operating Permit or Annual License if the Licensee completes any corrective action(s) to remedy the violation, or if a hearing officer orders reinstatement following an administrative hearing. DCR shall issue a Letter of Reinstatement if the Operating Permit or Temporary Approval is reinstated.
2. Notice of Revocation. In addition to any of the remedies and penalties set forth in this article or any other law, DCR may revoke Temporary Approval, an Annual License and/or an Operating Permit by issuing a Notice of Revocation after considering the following factors: (1) the extent of harm or potential harm caused by the violation; (2) the nature and persistence of the violation; (3) the length of time over which the violation occurred; (4) the history of past violations; and (5) any mitigating evidence. The Licensee may request an administrative hearing pursuant to Section 104.14.
3. A Licensee with a suspended or revoked Operating Permit or Temporary Approval may not conduct Commercial Cannabis Activity pending the outcome of the administrative hearing.
4. The revocation of an Annual License automatically revokes the associated Operating Permit.
(f) Administrative Hold. To prevent destruction of evidence, illegal diversion of Cannabis or a Cannabis product, or to address a potential threat to the environment or public safety, DCR may order an administrative hold of Cannabis or a Cannabis product. DCR shall send notice of administrative hold to the Licensee by electronic mail and shall provide a description of the Cannabis and/or Cannabis product subject to the administrative hold, along with a statement for the basis of issuing the administrative hold. Within 24 hours of receipt of the notice of administrative hold, the Licensee shall physically segregate all applicable Cannabis and/or Cannabis products subject to the hold and shall safeguard and preserve the subject property as required in the notice and the Rules and Regulations. Following the issuance of a notice of administrative hold, the Licensee shall identify the Cannabis and/or Cannabis product subject to the administrative hold in the State’s track-and-trace system. While the administrative hold is in effect, the Licensee is restricted from selling, donating, transferring, transporting, or destroying the administratively held property. Nothing herein shall prevent a Licensee from the continued possession, cultivation, or harvesting of Cannabis subject to the administrative hold. During the hold period, all Cannabis and/or Cannabis products subject to an administrative hold shall be put into separate batches. A Licensee may voluntarily surrender Cannabis and/or a Cannabis product that is subject to an administrative hold if identified in the State’s track-and-trace system. Voluntary surrender does not waive the right to an administrative hearing pursuant to Section 104.14 within 15 days of the date of mailing of the written notice by DCR.
(Amended by Ord. No. 187,095, Eff. 7/1/21.)
(a) A request for an administrative hearing may be filed for the following DCR actions: (Amended by Ord. No. 187,879, Eff. 6/2/23.)
1. Issuance of a NOV;
2. Denial of a renewal application for a License and/or a renewal of an Operating Permit;
3. Notice of an administrative hold;
(b) For hearings authorized by Subsection (a)(5), the Licensee shall file a request for an administrative hearing within 5 days of the date the Notice of Suspension or Notice of Revocation was sent by electronic mail. A request for an administrative hearing is filed following the submission of all required and completed appeal information, forms, and documents, and the payment of all relevant appeal fee(s) under Section 104.19. An administrative hearing shall be held within 10 days of the Notice of Suspension or Notice of Revocation, unless the Licensee and DCR mutually agree to a later date. Pre-hearing disclosures pursuant to Subsection (e) shall be sent by simultaneous email service upon the other party, either DCR or the Licensee, and the hearing officer no later than two (2) days before the hearing. A Licensee shall not conduct Commercial Cannabis Activity pending the outcome of the administrative hearing. (Amended by Ord. No. 187,879, Eff. 6/2/23.)
(c) For all other hearings authorized by Subsection (a), the Licensee shall file a request for an administrative hearing within 15 days of the date the written decision being appealed was sent by electronic mail, unless a later date is provided in the notice. A request for an administrative hearing is filed following the submission of all required and completed appeal information, forms, and documents, and the payment of all relevant appeal fee(s) under Section 104.19. A Licensee may continue to conduct Commercial Cannabis Activity pending the hearing officer’s final determination. If DCR places an administrative hold on Cannabis and/or a Cannabis product, the hold shall remain in effect pending the outcome of the administrative hearing. (Amended by Ord. No. 187,879, Eff. 6/2/23.)
(d) DCR shall select a hearing officer and schedule an administrative hearing within 60 days of the date the request for an administrative hearing was filed. The time for holding a hearing may be extended by mutual agreement between DCR and the appellant. DCR shall send the notice of the hearing by electronic mail no later than 20 days prior to the date of the hearing. (Amended by Ord. No. 187,879, Eff. 6/2/23.)
(e) Pre-Hearing Disclosures. No later than seven calendar days prior to an administrative hearing, DCR and the appellant shall make the following pre-hearing disclosures to the hearing officer, with simultaneous email service upon the other party: (i) a brief statement of the facts and issues relating to the appeal; (ii) a copy of all documentary evidence to be offered at the hearing; and (iii) a list of all witnesses to be presented at the hearing. The hearing officer shall not issue any decision relating to the appeal before the hearing.
(f) DCR may promulgate Administrative Hearing Procedures concerning hearing processes and procedures. Administrative hearings shall be conducted as follows:
1. The hearing shall be recorded by an audio device provided by DCR. Any party to the hearing may, at its own expense, cause the hearing to be audio recorded and transcribed by a certified court reporter;
2. DCR shall have the burden of proof by the preponderance of the evidence;
3. The hearing officer may accept evidence on which persons would commonly rely in the conduct of their business affairs;
4. The hearing officer may continue the hearing and request additional relevant information from any party; and
5. Within 30 days of the conclusion of the hearing, the hearing officer shall issue a written decision that includes a statement of the factual and legal basis of the decision. The hearing officer shall use a de novo standard of review and may uphold or reject, in whole or in part, DCR’s action. The hearing officer may waive or reduce the administrative penalties in an NOV after considering the factors specified in 104.13(b).
6. The hearing officer’s determination shall be final and effective on the date it is sent by electronic mail and U.S. mail to the Applicant or Licensee. The issuance of a final determination from a hearing officer after an administrative appeal hearing exhausts administrative remedies. (Amended by Ord. No. 187,879, Eff. 6/2/23.)
(Added by Ord. No. 185,343, Eff. 12/19/17.)
(a) Prohibitions on Unlicensed Commercial Cannabis Activity and Certain Medical Marijuana Collectives.
1. It is unlawful for a Person to establish, operate, or participate as an Employee, contractor, agent or volunteer, in any unlicensed Commercial Cannabis Activity in the City.
2. It is unlawful for a Person to establish, operate or participate in a medical marijuana collective or cooperative unless in a dwelling unit with three or fewer qualified patients, persons with identification cards or primary caregivers, or any combination thereof.
3. The prohibitions in Subsections (a)1. and (a)2., include renting, leasing to or otherwise allowing any unlicensed Commercial Cannabis Activity or a medical marijuana collective or cooperative to occupy or use any building or land.
(b) Starting on January 1, 2018, it is unlawful to:
1. Own or operate an Unlawful Establishment;
2. Participate as an Employee, contractor, agent or volunteer or in any other capacity in an Unlawful Establishment;
3. Use any portion of any parcel of land as an Unlawful Establishment; or
4. Lease, rent to, or otherwise allow an Unlawful Establishment to occupy any portion of parcel of land.
(c) A violation of this section is a public nuisance and may be abated by the City or by the City Attorney, on be- half of the people of the State of California, as a nuisance by means of a restraining order, injunction or any other order or judgment in law or equity issued by a court of competent jurisdiction. The City or the City Attorney, on behalf of the people of the State of California, may seek injunctive relief to enjoin violations of, or to compel compliance with, this section or seek any other relief or remedy available at law or equity. Each day that a violation continues is deemed to be a new and separate offense and subject to a maximum civil penalty of $20,000 for each and every offense.
(d) Any Person violating this section shall be guilty of a misdemeanor punishable by a fine of not more than $1,000 or by imprisonment in the County Jail for a period of not more than six months, or by both a fine and imprisonment. Each day that a violation continues is deemed to be a new and separate offense. A violation of this section by an Employee, contractor, agent or volunteer, who has no financial interest in the Unlawful Establishment, may be punishable by means of a citation issued under the City’s Administrative Citation Enforcement Program. (Amended by Ord. No. 185,850, Eff. 11/28/18.)
(e) The Department of Water of Power (DWP) is authorized to disconnect utilities at a location occupied by an Unlawful Establishment if (i) the Police Department or other City Department provides written confirmation to DWP that commercial cannabis activity is occurring at the location, and (ii) DCR provides written confirmation to DWP that the City has not issued Temporary Approval or a License to engage in commercial cannabis activity at the location. The manner and form of the written confirmation shall be established and agreed to by the referenced departments. (Added by Ord. No. 186,029, Eff. 3/14/19.)
(f) The remedies specified in this section are cumulative and in addition to any other remedies available under state or local law for a violation of this article. (Relettered by Ord. No. 186,029, Eff. 3/14/19.)
(g) Nothing in this section shall be construed as requiring the City to allow, permit, license, authorize or otherwise regulate medical or nonmedical Cannabis, or as abridging the City’s police power with respect to enforcement regarding medical or nonmedical Cannabis. (Relettered by Ord. No. 186,029, Eff. 3/14/19.)
(h) A City Department may recover its costs incurred through the abatement of, or enforcement activity against, an Unlawful Establishment as provided under Los Angeles Administrative Code Section 7.35.3 or any other applicable law. (Added by Ord. No. 186,223, Eff. 8/14/19.)
(Added by Ord. No. 186,918, Eff. 3/27/21.)
(a) Public Nuisance. Unlicensed Commercial Cannabis Activity is a public nuisance.
(b) Installation of Protective Devices. The Department of Building and Safety (LADBS), after notice pursuant to Subsection (c), is authorized to padlock, barricade, and fence (protective devices) any location occupied by an Unlawful Establishment if: (i) the Police Department provides written confirmation to LADBS that Commercial Cannabis Activity is occurring at the location; and (ii) DCR provides written confirmation to LADBS that the City has not issued a Temporary Approval or a License to engage in Commercial Cannabis Activity at the location. If the property owner or authorized occupant requests a hearing pursuant to Subsection (d), LADBS shall not padlock, barricade, or fence the property without the authorization of the hearing officer.
(c) Notice. The notice required in Subsection (b) shall be posted on the property and a copy mailed first class to the owner of the property as shown on the last equalized assessment roll. The notice shall state that the City has information that unlicensed Commercial Cannabis Activity is occurring on the property and the City may padlock, barricade, and fence the property if, within 10 calendar days of the notice, the activity is not abated or the property owner or authorized occupant fails to request a hearing pursuant to Subsection (d). The notice shall further state that the property owner and authorized occupant shall be jointly and severally responsible to pay the City’s costs for installing, maintaining, and removing the protective devices plus an amount equal to 40 percent of such cost to cover the City’s expense to administer and supervise the required work. The notice shall explain how the property owner and authorized occupant can request a hearing.
(d) Opportunity for Hearing Before Installing Protective Devices. If the property owner or authorized occupant requests a hearing within 10 calendar days of the mailing of the notice in Subsection (c), LADBS shall not padlock, barricade, or fence the property without the authorization of the hearing officer. The hearing shall be set on a date within 30 calendar days of the mailing of the notice in Subsection (c). If the hearing officer determines that unlicensed Commercial Cannabis Activity is not occurring on the property, then the property shall not be padlocked, barricaded, and fenced. If the hearing officer determines that unlicensed Commercial Cannabis Activity is occurring on the property, then the hearing officer may authorize LADBS to padlock, barricade, and fence the property. The hearing officer may consider whether unlicensed Commercial Cannabis Activity was occurring on the property before the hearing date and the benefit of authorizing the protective devices to curb such future activity.
(e) Opportunity for Hearing to Remove Protective Devices. The property owner or authorized occupant may request a hearing to remove the protective devices. The protective devices may be removed at the direction of a hearing officer who holds a hearing and determines that unlicensed Commercial Cannabis Activity is not occurring on the property. The hearing shall be set on a date no more than 15 calendar days after the date of the request by the property owner or authorized occupant. If the hearing officer determines that unlicensed Commercial Cannabis Activity is not occurring on the property at the time of the hearing and the property owner and occupant demonstrate to the hearing officer that they have taken reasonable measures to prevent the occurrence of unlicensed Commercial Cannabis Activity on the property, then the hearing officer shall order the removal of the padlock, barricade, and fence. If the hearing officer determines that unlicensed Commercial Cannabis Activity was not occurring on the property at the time of the notice in Subsection (c), then the property owner and authorized occupant shall not be responsible to pay the City’s costs for installing, maintaining, and removing the protective devices.
(f) Hearing Process. Hearings afforded under Subsections (d) and (e) are the property owner’s and authorized occupant’s exclusive means for administrative review of the City’s actions. Requests for hearings must be made by the property owner or authorized occupant in writing on a form approved by the City. At the hearing, the City, property owner, and authorized occupant may present any evidence or testimony relevant to whether unlicensed Commercial Cannabis Activity is occurring on the property and evidence and testimony relevant to the reasonable measures taken by the property owner and/or authorized occupant to prevent the occurrence of unlicensed Commercial Cannabis Activity. The City, property owner, and authorized occupant may cross examine witnesses. If the property owner or authorized occupant fail to appear at the hearing, then the hearing may proceed in their absence. For good cause only, the hearing officer, at the request of the property owner or authorized occupant, may continue the hearing for up to 10 calendar days. The decision of the hearing officer shall be based on the preponderance of the evidence and testimony provided at the hearing. The decision shall be rendered within five business days of the hearing and include a statement of the factual and legal basis of the decision. A copy of the hearing officer’s decision shall be posted on the property and mailed to the property owner and the authorized occupant at the address of the property location, and provided to LADBS and DCR. The decision by the hearing officer is the exclusive means of review and shall be final and not administratively appealable.
(g) Possession and Responsibility to Maintain Property. In exercising the powers authorized in this section, the City takes no legal possessory interest in the property or anything contained on the property. The property owner or authorized occupant, as applicable, shall remain responsible to maintain the property in a safe and sanitary condition and in good repair.
(h) Personal Property. It shall be the responsibility of the property owner or authorized occupant to remove or secure any personal property or other possessions on the property.
(i) Limited Access of Areas Secured by Protective Devices. During the time LADBS has padlocked, barricaded, or fenced the property under this section, no person shall access any portion of the area secured by the protective devices, except that the property owner, including the agent of the property owner, or authorized occupant may access the property pursuant to Subsections (g) and (h). Any person who violates this subsection shall be guilty of a misdemeanor. This subsection shall not apply to law enforcement personnel, public officers, or public employees acting within the course and scope of their employment or in the performance of their official duties.
(j) Recordation. A copy of the notice described in Subsection (c) shall be recorded with the Office of the County Recorder. After the City has determined that unlicensed Commercial Cannabis Activity is not occurring on the property, the City shall file with the Office of the County Recorder a certificate terminating the above recorded status of the property.
(k) Reimbursement of City Costs. The property owner and authorized occupant shall be jointly and severally responsible to reimburse the City’s costs for installing, maintaining, and removing the protective devices plus an amount equal to 40 percent of such cost to cover the cost of administering and supervising the required work. The City may pursue collection of any costs imposed under this section as provided in Los Angeles Administrative Code Sections 7.35.1 through 7.35.10, or through any legal remedy before any court of competent jurisdiction.
(Amended by Ord. No. 185,629, Eff. 7/2/18.)
DCR shall administer the Rules and Regulations as adopted by the City Council. DCR may promulgate and enforce Rules and Regulations related to this article, which shall have the force and effect of law, and may be relied upon by Applicants, Licensees, or other parties to determine their rights and responsibilities. The Commission may recommend to the City Council or DCR amendments to the Rules and Regulations.
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