(Title and Section Amended by Ord. No. 187,879, Eff. 6/2/23.)
(a) General Denial Reasons. With no hearing and based upon written findings supported by evidence in the record, the issuance of Temporary Approval, an Annual License, or the renewal of Temporary Approval or an Annual License, may be denied for any of the following reasons:
1. The Business Premises is substantially different from the diagram of the Business Premises submitted by the Applicant or Licensee, in that the size, layout, location of common entryways, doorways, or passageways, means of public entry or exit, or limited-access areas within the Business Premises are not the same;
2. The Applicant or Licensee denied DCR employees or agents access to the Business Premises;
3. The Applicant or Licensee procured the License by fraud or deceit, made a material misrepresentation, false statement, or knowingly failed to disclose a material fact;
4. The Applicant or Licensee failed timely to provide DCR with requested information, forms or documents;
5. The Applicant or Licensee was denied a license, permit or other authorization to engage in Commercial Cannabis Activity by any state or other local licensing authority;
6. Issuance of a License would create a significant public safety problem as documented by a law enforcement agency;
7. The Applicant or Licensee failed to adhere to the requirements of this article or the Rules and Regulations;
8. The Applicant or Licensee engaged in unlicensed Commercial Cannabis Activity in violation of Section 104.15;
9. Temporary Approval has been revoked;
10. The Applicant or Licensee failed a Business Premises inspection by DCR, another City agency, or the Los Angeles County Department of Public Health; or
(b) Business Premises Denial Reasons. With no hearing and based upon written findings supported by evidence in the record, a Pre-Application Record, Temporary Approval, an Annual License, or the renewal of Temporary Approval or an Annual License, may be denied for any of the following reasons:
1. The proposed Business Premises fails to meet any of the requirements of Article 5 of Chapter X of this Code;
2. The Applicant’s Business Premises is located in a Community Plan Area which has reached Undue Concentration, unless the City Council has adopted written findings that approval of the License Application would serve public convenience or necessity, supported by evidence in the record;
3. The Business Premises is owned or managed by a Person who holds office in any agency of the State of California and any of its political subdivisions, including the City and any of its agencies, departments, commissions or boards of the State of California or its political subdivisions if the Person’s duties include the enforcement or regulation of Commercial Cannabis Activity or any other penal provisions of law of the State of California prohibiting or regulating Commercial Cannabis Activity;
4. For a period of five years from the date of any conviction if the Business Premises was the site of illegal volatile Cannabis manufacturing under Health and Safety Code Section 11379.6;
5. For a period of five years from the date of any conviction if the Business Premises was the site of distribution of Cannabis to minors;
6. For a period of five years from the date of any conviction if the Business Premises was the site of any illegal Commercial Cannabis Activity after April 1, 2018;
7. For a period of five years from the date of any conviction if the Business Premises was the site of unlicensed Commercial Cannabis Activity, in violation of Section 104.15, on or after January 1, 2018;
8. For a period of five years from the date of any conviction if the Business Premises is located on any portion of any parcel of land used as an Unlawful Establishment, in violation of Section 104.15, on or after January 1, 2018;
9. For a period of five years from the date of any utility disconnection if the Business Premises was the site of a disconnection of utilities under Section 104.15(e); or
10. For a period of five years from the date of any padlocking if the Business Premises was the site of padlocking under Section 104.15.1.
(c) Ownership Denial Reasons. With no hearing and based upon written findings supported by evidence in the record, Temporary Approval, an Annual License, or the renewal of Temporary Approval or an Annual License may be denied if the Owner(s) of the Applicant or Licensee is ineligible for any of the following reasons:
1. An individual who holds office in, is employed by, or is appointed to, any agency of the State of California and any of its political subdivisions, including the City and any of its agencies, departments, commissions or boards, when the individual’s duties include the enforcement or regulation of Commercial Cannabis Activity or any other penal provisions of law of the State of California prohibiting or regulating Commercial Cannabis Activity; or
2. Any entity that is incorporated outside of the United States.
(d) Disqualification of Primary Personnel. Primary Personnel convicted of any of the following offenses within the time specified shall be disqualified and are prohibited from applying for or holding a Temporary Approval or Annual License. Unless the Primary Personnel is a Social Equity Individual Applicant, the Applicant may submit a modification request pursuant to Section 104.03(c) to remove the disqualified Primary Personnel. Primary Personnel may be subject to LiveScan or a similar review of criminal history.
1. For a period of five years from the date of any conviction for Illegal volatile Cannabis manufacturing under Health and Safety Code Section 11379.6;
2. For a period of five years from the date of any conviction for a violation of any State or local law involving wage or labor provisions;
3. For a period of five years from the date of any conviction for a violation of any law involving distribution of Cannabis to minors;
4. For a period of five years from the date of any conviction for Illegal Commercial Cannabis Activity after April 1, 2018;
5. For a period of five years from the date of any conviction for a violation of any State or local law involving distribution or sales of tobacco or alcohol to minors;
6. The later of a period of 20 years from the date of any conviction for or completion of a term of imprisonment, supervised release, or probation imposed as a sentence for a conviction for a violent felony as defined in California Penal Code Section 667.5, a serious felony conviction as defined in California Penal Code Section 1192.7, or a felony conviction for violating any law involving violent crimes, sex trafficking, rape, crimes against children, gun crimes, or hate crimes;
7. For a period of 20 years from the date of a felony conviction for a crime involving fraud, deceit, or embezzlement. In addition, an individual with a felony conviction under this subsection shall be prohibited from serving as an Authorized Agent, as defined in the Rules and Regulations, or agent for service of process on any Application; or
8. For a period of five years from a civil judgment concerning illegal Commercial Cannabis Activity.
(e) Suspension for Unlicensed Activity or Life Safety Violations. DCR may immediately suspend a Temporary Approval or Operating Permit without a hearing based upon DCR’s discovery or notice from another city, state or public agency that: (1) the Licensee’s use of or conduct at the Business Premises poses an imminent threat to life or public safety; (2) the Licensee is conducting Commercial Cannabis Activity without all necessary permits, inspections or similar clearances from another city, state or other public agency; or (3) the Licensee is conducting Commercial Cannabis Activity without an active State License for that Commercial Cannabis Activity. After suspension, the Licensee may request an administrative hearing pursuant to Section 104.14. A Licensee may not conduct Commercial Cannabis Activity while the Temporary Approval or Operating Permit is suspended.
1. If DCR suspends a Temporary Approval or Operating Permit because the Licensee is conducting Commercial Cannabis Activity without a State License or without a required permit, inspection or clearance to operate from another city, state or public agency, DCR may reinstate the Temporary Approval or Operating Permit if the Licensee provides evidence of the relevant State License(s) or required permit, inspection or clearance to operate, or if such a showing is made during an administrative hearing. DCR shall not reinstate the Temporary Approval or Operating Permit if a utility disconnection, padlocking, or other enforcement action occurs during the period of suspension that renders the Business Premises ineligible under Section 104.04(b).
2. DCR may issue a Notice of Violation based upon notice from another city, state, or other public agency, including but not limited to the Los Angeles Fire Department or Department of Building and Safety, that the Licensee has not taken the necessary corrective action, within 90 days, or other time allotted by the citing agency, to cure a violation, notice to correct, or other form of non-compliance. The Licensee may request an administrative hearing pursuant to Section 104.14.