(Added by Ord. No. 185,343, Eff. 12/19/17.)
(a) Proposition M Priority Processing Applications for Retailer Commercial Cannabis Activity, which includes delivery, and on-site cultivation consistent with Proposition D, shall be accepted and processed by DCR for the first 60 days after DCR starts accepting applications. EMMD Applicants may apply for a maximum of one Microbusiness License (Type 12); or a maximum combination of one Retailer License (Type 10), one Distributor License (Type 11), one Manufacturer License (Type 6 only) and one Cultivation, Indoor (Type 1A, 1C, 2A or 3A) License for the one location identified in its original or amended BTRC and as demonstrated in previous Commercial Cannabis Activity as of March 7, 2017. (Amended by Ord. No. 185,608, Eff. 7/23/18.)
(b) An EMMD that as of January 1, 2018, meets all of Proposition D requirements shall continue to have limited immunity up until the time the EMMD receives Temporary Approval. The limited immunity shall terminate if the EMMD Applicant fails to seek or obtain a Temporary Approval, although the limited immunity shall be extended through any appeal of the Temporary Approval denial. The limited immunity shall be as follows: the EMMD 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 engaging in medical 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 EMMD and only by an EMMD at the one Business Premises operated by the EMMD. 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.
(c) DCR’s determination of whether an EMMD Applicant is eligible for Proposition M Priority Processing shall be made with no hearing and shall be final and effective upon the close of the 15-day appeal period if the EMMD Applicant does not timely request an administrative hearing as provided in Section 104.14. In making its determination, DCR may request additional information from the EMMD Applicant. DCR shall consider whether the EMMD Applicant cured any non-substantive administrative violations of LAMC Section 45.19.6.3, Subsections C. through F., and M. DCR shall make written findings when the EMMD Applicant does not meet the requirements for priority processing for EMMDs. If DCR deems a Proposition M Priority Processing Application complete and eligible for a Proposition M Priority Processing, DCR shall issue the EMMD a Temporary Approval after the EMMD Applicant submits all required and completed information, forms, and documents to meet the Temporary Approval requirements in the Rules and Regulations. An EMMD Applicant may only conduct Commercial Cannabis Activity with an active State License for that Commercial Cannabis Activity. DCR may immediately suspend or revoke the Temporary Approval if the EMMD fails to abide by any City operating requirement. An EMMD Applicant issued a Temporary Approval shall have their Annual License Application processed pursuant to Section 104.06. (Amended by Ord. No. 187,879, Eff. 6/2/23.)
(d) If Proposition M Priority Processing is denied by DCR and, if appealed to the Commission or hearing officer and is also denied by the Commission or the hearing officer, the EMMD Applicant shall immediately cease all Commercial Cannabis Activity at the Business Premises and the EMMD Applicant shall not be entitled to the limited immunity from prosecution afforded by Proposition D. An EMMD Applicant determined ineligible for Proposition M Priority Processing may apply for a License by filing a new application and abiding by the application priority in effect at that time. DCR shall not refund any fee for an application determined ineligible for Proposition M Priority Processing. (Amended by Ord. No. 186,703, Eff. 7/10/20.)
(e) An EMMD otherwise eligible for Proposition M Priority Processing shall not be denied a Temporary Approval or a License based upon the EMMD’s Business Premises location initially or amended prior to the enacted date of Section 45.19.7.2, or subsequent location approved pursuant to Section 45.19.7.2, if located in a Community Plan Area that has reached Undue Concentration. An EMMD otherwise eligible for Proposition M Priority Processing shall not be denied a Temporary Approval or a License based upon the location of: (1) the EMMD’s original Business Premises; (2) Business Premises amended prior to the enactment of Section 45.19.7.2; or (3) subsequent Business Premises approved pursuant to Section 45.19.7.2, if located in a Community Plan Area that has reached Undue Concentration. (Amended by Ord. No. 187,095, Eff. 7/1/21.)
(f) An EMMD shall submit to a financial audit by the City’s Office of Finance and clear all City tax obligations prior to the issuance of a Temporary Approval or a License, and the renewal of a Temporary Approval or a License. For purposes of this subsection only, an EMMD that has entered into a payment plan with the City’s Office of Finance pursuant to LAMC Section 21.18 to pay all outstanding City-owed business taxes is deemed current on all City-owed business taxes and is deemed to have submitted payment for all City-owed business taxes. (Amended by Ord. No. 186,703, Eff. 7/10/20.)
(g) An Initial Inspection for a Temporary Approval is not required for an EMMD whose Proposition M Priority Processing Application is accepted by DCR. (Amended by Ord. No. 186,703, Eff. 7/10/20.)
(h) An EMMD issued a License pursuant to Proposition M Priority Processing is not required to adhere to the zone, distance and sensitive use restrictions stated in Section 105.02 of this Code as long as, and on the condition that, the EMMD operates and continues to operate in compliance with the distance and sensitive use restrictions (Los Angeles Municipal Code Section 45.19.6.3 L. and O.) of Proposition D notwithstanding those restrictions are or would have been repealed. This limited grandfathering shall not create, confer, or convey any vested right or non-conforming right or benefit regarding any activity conducted by the EMMD beyond the term and activities provided by the City License. This limited grandfathering shall cease on December 31, 2025, after which all EMMDs shall be required to cease conducting any Commercial Cannabis Activities on Business Premises that do not meet the zone requirements of Article 5 of Chapter X of this Code. If an EMMD issued a License fails to operate in compliance with the specified provisions of Proposition D, the EMMD’s Temporary Approval or License shall be subject to revocation. (Amended by Ord. No. 187,095, Eff. 7/1/21.)