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(Added by Ord. No. 185,343, Eff. 12/19/17.)
(a) An Applicant who applies for a License for Commercial Cannabis Activity that is not Retailer Commercial Cannabis Activity and who meets the following criteria, as determined by DCR, shall receive Temporary Approval if: (1) the Applicant was engaged prior to January 1, 2016, in the same Commercial Cannabis Activity that was not Retailer Commercial Cannabis Activity for which it now seeks a License; (2) the Applicant is not engaged in Retailer Commercial Cannabis Activity at the Business Premises; (3) the Applicant provides evidence and attests under penalty of perjury that the Applicant was a supplier to an EMMD prior to January 1, 2017; (4) the Business Premises meets all requirements of Article 5 of Chapter X of this Code; (5) the Applicant passes an Initial Inspection; (6) there are no fire or life safety violations on the Business Premises; (7) the Applicant paid all outstanding City business tax obligations; (8) the Applicant provides a written attestation that the Applicant will enter into an agreement with a testing laboratory for testing of all Cannabis and Cannabis products and attests to testing all of its Cannabis and Cannabis products in accordance with state standards; (9) the Applicant attests that the Applicant will cease all operations if denied a State License or City License; (10) the Applicant qualifies under the Social Equity Program as it existed as of January 1, 2020; and (11) the Applicant submits all required and completed information, forms, and documents to meet the Temporary Approval requirements in the Rules and Regulations. DCR may immediately suspend or revoke the Temporary Approval if the Applicant fails to abide by any City operating requirement. For purposes of this subsection only, an Applicant who has entered into a payment plan with the City’s Office of Finance pursuant to LAMC Section 21.18 to pay all outstanding City-owed business taxes is deemed current on all City-owed business taxes and is deemed to have submitted payment for all City-owed business taxes. Prior to determining that an Applicant is eligible for processing under this section, DCR, at its discretion, may provide an Applicant with Local Compliance Underway status to apply for a provisional license from the State. A status of Local Compliance Underway shall not permit an Applicant to conduct Commercial Cannabis Activities unless DCR grants the Applicant Temporary Approval or an Operating Permit. Local Compliance Underway must be renewed annually pursuant to Section 104.12 until a License is issued. (Amended by Ord. No. 187,879, Eff. 6/2/23.)
(b) A completed application accepted by DCR as eligible for processing under this section shall be processed and reviewed pursuant to Section 104.06. DCR may request additional information from the Applicant. DCR shall make written findings when the Applicant does not meet the requirements for processing under this section. DCR’s determination of whether an Applicant is eligible for processing under this section shall be made with no hearing and shall be final and effective 15 days after the date of its mailing if the Applicant does not timely request an administrative hearing, as provided in Section 104.10. (Amended by Ord. No. 186,703, Eff. 7/10/20.)
(c) An Applicant that submitted an application pursuant to this section by September 13, 2018, paid all fees required under Section 104.19, and received from DCR local authorization under this section shall not be subject to the remedies set forth in Los Angeles Municipal Code Sections 11.00 or 12.27.1 solely on the basis of Non-Retailer Commercial Cannabis Activity; provided, however, that, as authorized by California Health and Safety Code Section 11362.83, this limited immunity is available and may be asserted as an affirmative defense only so long as the requirements of this section are adhered to by the Applicant and only by an Applicant at the one Business Premises identified in its application. This limited immunity shall terminate upon the close of the 15-day appeal period if the Applicant does not timely request an administrative hearing, as provided in Section 104.10. This limited immunity shall not be available to and shall not be asserted as an affirmative defense to any violation of law except as expressly set forth in this section. Further, nothing contained in this limited immunity is intended to provide or shall be asserted as a defense to a claim for violation of law brought by any county, state or federal governmental authority. (Amended by Ord. No. 186,703, Eff. 7/10/20.)
(e) An Applicant under this section that has not received Temporary Approval shall report to DCR by July 1, 2019, whether it has made substantial progress, as determined by DCR, towards preparing its Business Premises to pass an Initial Inspection. An Applicant who cannot report substantial progress by July 1, 2019, shall have its application deemed abandoned. An Applicant who reports substantial progress by July 1, 2019, shall be required to pass an Initial Inspection by December 31, 2019, or its application shall be deemed abandoned unless DCR grants the Applicant an extension due to extenuating circumstances as determined by DCR in its sole discretion. (Amended by Ord. No. 186,703, Eff. 7/10/20.)
(Amended by Ord. No. 185,629, Eff. 7/2/18.)
An Applicant seeking a Testing Lab License (Type 8) may submit an application to DCR at any time after DCR first accepts applications for any License. If an Applicant obtains or attests that it has or intends to seek ISO/IEC 17025 accreditation for all testing methods required by Title 16, Div. 42 of the California Code of Regulations and meets all laboratory-employee qualifications required by Title 16, Div. 42 of the California Code of Regulations, DCR may issue a Temporary Approval to the testing lab before completion of a pre-licensing inspection. If an Applicant is denied an ISO/IEC 17025 accreditation, its Temporary Approval shall be immediately revoked and it shall immediately cease all Testing Commercial Cannabis Activity.
(Amended by Ord. No. 187,879, Eff. 6/2/23.)
(a) Appeals – General.
1. Unless otherwise specified, an appeal must be filed with DCR within 15 days of the date the written decision being appealed was mailed or sent by electronic mail, whichever is earlier. An appeal shall be filed following the submission of all required and completed appeal information, forms, and documents, and the payment of all relevant appeal fee(s) pursuant to Section 104.19. The right to an appeal shall be waived if the Applicant or Licensee fails to timely file an appeal. Failure to file an administrative appeal shall constitute a failure to exhaust administrative remedies.
2. The Applicant or Licensee shall set forth the specific basis upon which an error or abuse of discretion by the lower level decision maker is asserted. The lower level decision maker shall transmit to the appellate body the appeal, the file of the matter, along with any report, if one was prepared, responding to the allegations made in the appeal.
3. The time for holding any hearing required under this section may be extended by mutual agreement between the appellate body and the appellant. If the appellate body is the Commission, DCR shall have the authority to extend the time on behalf of the Commission. Failure of the appellate body to act within the time period allowed, including any extensions, shall be deemed a denial of the appeal.
4. The appellate body may consider the decision and record before the lower level decision maker and any new written information and oral testimony timely provided to the appellate body. The appellate body shall rule on the record and evidence de novo, substituting its own judgment for that of the lower level decision maker without deferring to the lower level decision maker’s findings and determinations. The appellate body may reverse or modify, in whole or in part, any decision of the lower level decision maker, including any penalties or fines assessed by the lower level decision maker. The appellate body shall make written findings supported by evidence in the record.
5. The appellate body shall mail its determination on the appeal within 30 days of the closure of the hearing on the appeal. Failure of the appellate body to issue a timely determination shall be deemed a denial of the appeal.
6. If there are no further appeals available, a determination issued by an appellate body is final and effective on the date of mailing the determination and shall exhaust all administrative remedies.
(b) Appeals to Administrative Hearing Officers.
2. An administrative hearing officer shall hold a hearing to consider an appeal within 60 days of the date the request for an administrative hearing is filed.
3. There is no further appeal to the Commission or City Council of an administrative hearing officer’s determination. A final determination by an administrative hearing officer shall exhaust all administrative remedies.
(c) Appeals to the Commission.
1. A request for an appeal to the Commission may be filed by the Applicant for the following:
(i) DCR’s denial of an Annual License Application for Storefront Retailer or Microbusiness Commercial Cannabis Activity with on-site sales pursuant to Section 104.06(b)(2)(ii).
(ii) DCR’s denial of an Annual License Application for Commercial Cannabis Activity that is not Storefront Retailer or Microbusiness with onsite sales pursuant to Section 104.06(c)(1).
2. The Commission shall hold a public hearing to consider an appeal within 90 days of the Commission’s receipt of the appeal. DCR shall provide notice of a Commission public hearing under Section 104.06(b)(1)(iii)(A) - (C) no less than 20 days prior to the date of the hearing.
(d) Appeals to City Council.
1. A request for an appeal to the City Council may be filed by the Applicant for the Commission’s denial of an Annual License application for Storefront Retailer or Microbusiness Commercial Cannabis Activity with on-site sales pursuant to Section 104.06(b)(2)(v).
2. The City Council shall hold a public hearing to consider the appeal within 15 City Council meeting days of City Council’s receipt of the appeal. No later than three days prior to any City Council hearing under this subsection, DCR shall provide notice of the hearing by electronic mail to the Applicant.
(Amended by Ord. No. 187,879, Eff. 6/2/23.)
(a) A License is not transferable unless the change to the Licensee’s organizational structure or ownership is submitted to and approved by DCR pursuant to Section 104.03(c). A change from non-profit status to for-profit status by an EMMD is exempt from this requirement if no other ownership change is made in accordance with Proposition D’s ownership rules and notice is provided to DCR within five days. This exemption is not available after a License is issued.
(b) A License for Storefront Retailer or Microbusiness Commercial Cannabis Activity with on-site sales must be prominently displayed at the Business Premises in a manner that makes it readable from the exterior of the Business Premises.
(c) Licensees shall designate a supervisor, manager or person-in-charge at all times during regular business hours.
(d) The name and contact number of the Neighborhood Liaison must be prominently displayed at the Business Premises in a manner that makes it readable from the exterior of the Business Premises.
(e) Cannabis, Cannabis products, and Cannabis- related materials associated with a License or Licensee’s Business Premises shall not be considered “Drug paraphernalia” as defined in LAMC Section 45.19.5.
(f) An Applicants or Licensee shall adhere to all the operational requirements in the Rules and Regulations.
(g) Applicants and Licensees shall be subject to inspection, investigation or audit by DCR or its agents, with no notice required, to determine compliance with this article or the Rules and Regulations. An inspection, investigation or audit is a review of any books, records, accounts, inventory, or on-site operations specific to the Business Premises and License.
1. DCR and its agents may conduct an on-site inspection prior to issuing a new or renewal License, or for the purpose of a compliance inspection resulting from a complaint or investigation, in accordance with the requirements of the State of California and the Rules and Regulations. DCR may record the inspection, investigation, or audit.
2. Failure to cooperate fully with an inspection, investigation or audit is a violation of this article.
(h) In construing and enforcing this article and the Rules and Regulations, any act, omission, or failure of an agent, officer, or other person acting for or employed by a Licensee, within the scope of their employment or office, shall in every case be deemed the act, omission, or failure of the Licensee.
(i) If an Applicant or Licensee contends that any information provided to the City is confidential, the Applicant or Licensee shall mark that information as confidential at the time of submitting it to the City. If the City obtains a request for disclosure of the information, the City may provide the Applicant or Licensee notice of the request for disclosure and allow the Applicant or Licensee a period of time determined by the City for the Applicant or Licensee to seek a court protective order. The City may publically release the information absent the issuance of the protective order or if the City is required by law to release the information.
(j) A Licensee shall make a good-faith effort to have no less than 30% 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. A Licensee shall make a good-faith effort to have no less than 10% of the weekly hours of the Licensee’s workforce performed by employees who are Transitional Workers. Transitional Worker means a person 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) being emancipated from the foster care system; (8) being a veteran; or (9) being over the age of 65 and financially compromised. At a minimum, a Licensee is required to contact local community-based organizations, City of Los Angeles WorkSource Centers, and other such similar organizations to facilitate job outreach, development, and placement services. A Licensee is required to provide to DCR a detailed annual report on or before the final day of February every year that provides evidence of its outreach efforts, including the number of persons interviewed, and details on who was hired to satisfy the good-faith effort requirement.
(k) It shall be unlawful for a Licensee or any other party to discriminate in any manner or take adverse action against any employee in retaliation for exercising rights protected under this article. These rights include, but are not limited to: the right to file a complaint or inform any person about any party’s alleged noncompliance with this article; and the right to inform any person of their potential rights under this article and to assist the employee in asserting such rights. Protections under this article shall apply to any Employee who mistakenly, but in good faith, alleges noncompliance with this article. Taking adverse action against an Employee within 90 days of the Employee’s exercise of rights protected under this article shall raise a rebuttable presumption of having done so in retaliation for the exercise of such rights.
(l) All Licensees shall obtain a permit from the Los Angeles County Department of Public Health. If the Licensee is engaged in Storefront Retailer or Microbusiness Commercial Cannabis Activity with on-site sales, the Licensee shall also obtain an Emblem Placard pursuant to Section 104.23.
(Added by Ord. No. 185,343, Eff. 12/19/17.)
(a) All records shall be renewed annually, including Temporary Approvals, Annual Licenses, Annual Licenses with Operating Permits, and records with a status of Local Compliance Underway. If a record is not timely renewed, it shall expire after 11:59 p.m. on December 31 for the year issued. To renew any record, an Applicant or Licensee shall submit a renewal application, and pay the applicable renewal fee pursuant to Section 104.19, no earlier than 120 days before the expiration of the record, and no later than 60 days before the expiration of the record. Failure to receive a notice for renewal from DCR does not relieve a Licensee or Applicant of the obligation to renew. In the event that a License or Operating Permit is not renewed prior to the expiration date, the Licensee shall cease all Commercial Cannabis Activity until such time that the Licensee is issued a new License or Operating Permit from DCR and a State License. (Amended by Ord. No. 187,879, Eff. 6/2/23.)
1. Notwithstanding the deadlines in Subsection (a), after January 1, 2021, Licensees may submit a late renewal application and/or make a late renewal fee payment between November 3rd and December 31st before the expiration date of a License or Temporary Approval. Late renewal applications and/or late renewal fees submitted between November 3rd and December 31st shall be subject to the Expedited Services Fees (Time and a Half Rate), provided in Section 104.19(h), which shall be due by December 31st.
2. Notwithstanding the deadlines in Subsection (a), after January 1, 2021, Licensees may submit a late renewal application and/or make a late renewal fee payment between January 1st and the final day of February after the expiration date of a License or Temporary Approval. Late renewal applications and/or late renewal fees submitted between January 1st and the final day of February shall be subject to the Expedited Services Fees (Double Time Rate), provided in Section 104.19
(h), which shall be due by the final day of February. All commercial cannabis businesses with an expired License or Temporary Approval must cease unlicensed Commercial Cannabis Activity until a new License or Temporary Approval is issued. (Amended by Ord. No. 187,095, Eff. 7/1/21.)
3. One-Time Extension Due to COVID-19. Due to the COVID-19 pandemic and the Mayor’s emergency orders relating to COVID-19, Licensees may submit a late 2019, 2020, and/or 2021 renewal application and/or make late renewal fee payments for 2019, 2020, and/or 2021 renewal applications on or before July 31, 2021. All renewal applications and/or renewal fees submitted pursuant to this one-time extension shall be subject to the Expedited Services Fees (Double Time Rate), set forth in Section 104.19
(h), which shall be due at the time of renewal fee payment. Expired licenses may be reinstated if all applicable renewal fees and/or Expedited Services Fees are timely paid. (Amended by Ord. No. 187,058, Eff. 7/4/21.)
(b) At the time a License renewal application is submitted to DCR, a Licensee must include the information, forms and documents required by the Rules and Regulations. As part of the renewal process, DCR may require modification to the Licensee’s security plan. Except for Tier 3 Licensees, Licensees subject to Section 104.20 shall also submit Equity Share documents in compliance with Section 104.20(a)(2). (Amended by Ord. No. 187,879, Eff. 6/2/23.)
(c) To renew a record, the Applicant or Licensee shall be in good standing with the requirements of this article and shall not be delinquent on any City tax, City fee, or fee payments previously deferred under Section 104.20(c)(4)(ii). For purposes of this subsection only, a Licensee who has entered into a payment plan with the City’s Office of Finance pursuant to LAMC Section 21.18
to pay all outstanding City-owed business taxes shall not be deemed delinquent on any City tax. (Amended by Ord. No. 187,879, Eff. 6/2/23.)
(d) Any Licensee who has ceased a Commercial Cannabis Activity at a Business Premises for a continuous period of 180 days shall not be authorized to renew its license unless authorized by DCR in accordance with the Rules and Regulations. (Amended by Ord. No. 186,703, Eff. 7/10/20.)
(e) DCR may cancel any License upon the request of the Licensee.
(f) A Licensee may file an administrative appeal of DCR’s decision to deny a renewal pursuant to Section 104.14 within 15 days of the date of DCR sent the denial letter by electronic mail. (Amended by Ord. No. 187,879, Eff. 6/2/23.)
(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.
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