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SEC. 104.03.  APPLICATION PROCEDURE.
   (Amended by Ord. No. 186,703, Eff. 7/10/20.)
 
   (a)   Application – Pre-Application Review.  Prior to filing an application pursuant to Subsection (b), an applicant shall pay a Pre-Application Review Fee pursuant to Section 104.19 for DCR to conduct a preliminary review of the application, and verify eligibility of Primary Personnel subject to a background review pursuant to Subdivisions 1. and 2. and compliance of the Business Premises location pursuant to Subdivision 3.  If the application is deemed eligible for further processing, the Applicant shall pay a Temporary Approval Application Fee pursuant to Section 104.19 within 10 days of receiving an eligibility determination for further processing.  An EMMD seeking a License under Section 104.07 shall pay the EMMD Temporary Approval Application Fee pursuant to Section 104.19(a).  An Applicant seeking a License under Section 104.08 shall pay the Section 104.08 Temporary Approval Application Fee pursuant to Section 104.19(a).  DCR may request additional information or documents from the Applicant at any time during the pre-application review, subject to payment of any fees under Section 104.19(h).  If the Applicant fails to provide the additional information or documents in the time allotted by DCR, the application shall be deemed abandoned.  Except for a Social Equity Individual Applicant who is an Owner on an application subject to processing under Section 104.06.1, an individual Applicant, Owner or Primary Personnel who is disqualified under Subdivision 1. or 2. may be permitted to amend the application to cure those defects, subject to the payment of any applicable modification fee in Section 104.19.  An Applicant whose Business Premises location is deemed ineligible under Subdivision 3. shall not be permitted to amend their application but may submit a new application subject to the payment of any applicable fee in Section 104.19.
 
   1.   Primary Personnel convicted of any of the following offenses within the time specified shall be disqualified in any of the following circumstances and are prohibited from applying for or holding a Temporary Approval or License:
 
   (i)   Illegal volatile Cannabis manufacturing under Health and Safety Code Section 11379.6 for a period of five years from the date of conviction.
 
   (ii)   A violation of any State or local law involving wage or labor for a period of five years from the date of conviction.
 
   (iii)   A violation of any law involving distribution of Cannabis to minors for a period of five years from the date of conviction.
 
   (iv)   Illegal Commercial Cannabis Activity after April 1, 2018, for a period of five years from the date of conviction.
 
   (v)   A violation of any State or local law involving distribution or sales of tobacco or alcohol to minors for a period of five years from the date of conviction.
 
   (vi)   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 for a period of 20 years from the date of conviction or completion of a term of imprisonment, supervised release or probation imposed as a sentence for the conviction, whichever is later.
 
   (vii)   A felony conviction for a crime involving fraud, deceit, or embezzlement for a period of 20 years from the date of conviction.  In addition, an individual with a felony conviction under this paragraph shall be prohibited from serving as an authorized agent or agent for service of process on any Application.
 
   2.   Persons are prohibited from being Owners of Persons applying for or holding a Temporary Approval or License and shall be disqualified in any of the following circumstances:
 
   (i)   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.
 
   (ii)   Any entity that is incorporated outside of the United States.
 
   3.   In the following circumstances a Business Premises location is ineligible for Licensure:
 
   (i)   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 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.
 
   (ii)   The Business Premises was the site of illegal volatile Cannabis manufacturing under Health and Safety Code Section 11379.6 as evidenced by a conviction, for a period of five years from the date of conviction.
 
   (iii)   The Business Premises was the site of distribution of Cannabis to minors as evidenced by a conviction, for a period of five years from the date of conviction.
 
   (iv)   The Business Premises was the site of any illegal Commercial Cannabis Activity after April 1, 2018, as evidenced by a conviction, for a period of five years from the date of conviction.
 
   (v)   The Business Premises was the site of a disconnection of utilities under Section 104.15(e) for a period of five years from the date of the disconnection.
 
   4.   If the Applicant's Business Premises is located in a Community Plan Area of Undue Concentration, DCR shall not conduct a preliminary review of the application pursuant to Subsection (a) and, instead, the Applicant shall file a request, on a form provided by DCR, that the City Council find that approval of the License application would serve the public convenience or necessity, supported by evidence in the record.  The Applicant shall also pay a Public Convenience or Necessity Application Fee pursuant to Section 104.19(g) within 10 days from the date of invoice issuance.  DCR shall transmit the request to the City Clerk within 30 days of the Applicant's payment of the Public Convenience or Necessity Application Fee.  The Applicant shall engage with and seek written input from the following key stakeholders for the area in which the proposed Business Premises will be located, which at a minimum should include:  area Neighborhood Council; Los Angeles Police Department (LAPD) Division; local chamber of commerce; and at least one substance abuse intervention, prevention and treatment organization with the Community Plan Area.  LAPD shall provide the City Council with crime data for the area, and a letter stating their position on the application request.  DCR shall promulgate standards subject to City Council approval by resolution, which may be amended from time to time.  DCR shall provide written notice of the Applicant's request pursuant to Section 104.05(b).  If the City Council does not act on the Applicant's request within 90 calendar days of the City Clerk's date of receipt, then the City Council shall be deemed to have not made the necessary findings to support the public convenience and necessity, the request shall be denied by operation of law, and the License application shall not be processed by DCR.
 
   (b)   Application – Filing and Fees.  DCR shall consider the application filed following a determination of eligibility pursuant to Subsection (a) and the payment of the applicable Temporary Approval Application Fee for each Commercial Cannabis Activity pursuant to Section 104.19(a).  The Temporary Approval Application Fee shall be due within 10 days from the date of invoice issuance.  If the fees are not paid within the allotted time, the application shall be deemed abandoned.  An Applicant shall submit all required information and documents pursuant to the Rules and Regulations.  All Applicants are required to pay the Annual License Application Fee for each activity requested in the application pursuant to Section 104.19(a).
 
   (c)   Application – Determination of Completeness.  DCR shall determine if the Application is complete as provided in the Rules and Regulations.  A determination of completeness includes an Initial Inspection and environmental clearance as required by Section 104.06(e).  The applicant shall pay the applicable environmental assessment fee pursuant to Section 104.19(c).  DCR may request additional information and documents from the Applicant at any time during application processing, subject to payment of any fees under Section 104.19(h).  If the Applicant fails to provide the additional information, documents or payment in the time allotted by DCR, the Application shall be deemed abandoned.  An Annual License Application Fee for each Commercial Cannabis Activity pursuant to Section 104.19 shall be paid within 10 days of DCR's determination that the Application is complete.  If the fees are not paid within the allotted time, the application shall be deemed abandoned.  DCR will conduct a Final Inspection and, when applicable, schedule a community meeting pursuant to Section 104.04.
 
   (d)   Application – Withdrawal.  An Applicant may withdraw an Application prior to the City's approval or denial of the License. An Application shall not be considered withdrawn until DCR has consented to its withdrawal in writing.  An Applicant may re-apply at any time if an Application is withdrawn or abandoned, but the Applicant must file a new application.  DCR shall not refund any fee for a withdrawn or abandoned application.  A request to withdraw an application must be submitted in writing, dated and signed by the Owner(s) representing a majority ownership share.  Withdrawal of an application shall not, unless consented by DCR, deprive DCR of its authority to institute or continue a proceeding against the Applicant for the denial of the License upon any ground provided by law or to enter an order denying the license upon any such ground.
 
   (e)   Application – Modification.  An Applicant or Licensee shall not make amendments to an Application or License without prior written approval by DCR in accordance with this subsection.  An Applicant or Licensee shall submit an amendment request on a form provided by DCR and pay a modification request fee pursuant to Section 104.19(h).  Upon payment, DCR, in its sole discretion, will review and determine if the amendment request is eligible for further consideration.  DCR's determination is final and not appealable.  If the requested amendment(s) can be further considered, the Applicant or Licensee shall submit any additional documents or information DCR deems necessary to process the request and pay any additional modification fees pursuant to Section 104.19.  Amendment requests shall not be processed until all required documents, information, and fees have been submitted to DCR.  DCR may require Licensees to obtain approval for the proposed amendment(s) from the applicable State licensing or regulatory agency or agencies.  DCR may also require business entities formed as corporations, limited partnerships or limited liability companies to update their filings with the California Secretary of State.  DCR shall provide written notification when the requested amendment has been fully processed.  Persons shall not be permitted to sell, lease, lend, or otherwise transfer an Application, Temporary Approval, or License separate and apart from a transfer of the Person who owns the Application, Temporary Approval, or License.  DCR may adopt guidelines, rules or regulations in accordance with this section.
 
   1.   Business Premises Relocation.  An Applicant or Licensee shall not relocate Commercial Cannabis Activity without prior written approval by DCR.  The Applicant or Licensee shall submit an amendment request form and pay the required modification fee pursuant to Section 104.19.  Upon payment of the modification fee, DCR shall review the new location request and notify the Applicant or Licensee if the new location complies with Article 5, Chapter X of the Los Angeles Municipal Code.  Upon notification, the Applicant or Licensee shall provide at a minimum: (1) a copy of an executed lease with proof of a deposit or property deed for the new location; (2) a landowner acknowledgement that the Licensee has the right to occupy the property for Commercial Cannabis Activity for which the Licensee is seeking a license; (3) a site plan; (4) a Business Premises diagram; and (5) copies of the licenses from the applicable State agency or agencies.
 
   (i)   An Applicant or Licensee applying for or authorized to conduct non-volatile manufacturing (Type 6), Non-Storefront Retailer (Type 9) and distribution (Type 11) may relocate to another location within the City subject to Subdivision 1. of this section.
 
   (ii)   An Applicant or Licensee applying for or authorized to conduct cultivation (Types 1A, 1C, 2A, 3A, 5A), volatile manufacturing (Type 7), and retail store-front (Types 10, 12) activities may relocate within the same Community Plan Area provided the Community Plan Area has not reached Undue Concentration and subject to Subsection (e)(1).  A relocation request within the same Community Plan Area which has reached Undue Concentration may be permitted provided the application was submitted prior to the Community Plan Area reaching Undue Concentration.
 
   (iii)   If the application was submitted pursuant to a finding by the City Council that approval of the license would serve the public convenience or necessity, the relocation request shall comply with the following requirements:
 
   (1)   Businesses without a License.  If the City Council found that approval of the Application would serve the public convenience or necessity for the original Business Premises location and DCR has not issued a License at the location, the Applicant shall request that the City Council find that approval of the License application at the new Business Premises location within the community plan area would serve the public convenience or necessity pursuant to Section 104.03(a)(4) and subject to Subsection (e)(1).
 
   (2)   Businesses with a License.  If the City Council found that approval of the Application would serve the public convenience or necessity for the original Business Premises location and DCR has issued a License at that location, the Licensee may be permitted to relocate within the same Community Plan Area which has reached Undue Concentration subject to Subsection (e)(1).
 
   2.   Ownership Structure.  Except for the Social Equity Individual Applicant who is an Owner in an application subject to processing under Section 104.06.1, DCR shall review and approve amendments to ownership for an Applicant's or Licensee's Applications, Temporary Approvals or Licenses.  After submitting an application under Section 104.06.1, an Applicant shall not be permitted to amend its application to remove or replace the individual Owner who is the Social Equity Individual Applicant, as defined Section 104.20(a) or (b).  Applications, Temporary Approvals, and Licenses are not transferable or assignable to another Person unless a request is submitted and approved by DCR.  Business entities formed as corporations, limited partnerships, or limited liability companies must update their filings with the California Secretary of State.  The Applicant or Licensee shall pay the applicable modification fees pursuant to Section 104.19, as determined by DCR, and submit the following: (1) a copy of Statement of Information filed with the Secretary of State, if applicable; (2) a copy of the Amended Articles of Organization or Incorporation, if applicable; (3) Ownership and Financial Interest Holder Disclosure Form for all Persons associated with the Application, Temporary Approval, or License; (4) organizational chart showing all owners and entities in any multi-layer business structure; and (5) any additional information or documents DCR deems necessary to consider the request.  Applicants and Licensees subject to Section 104.20 shall also provide all business records and agreements necessary to demonstrate that the Social Equity Individual Applicant owns the minimum Equity Share required under Section 104.20(a)(2).  Amendments to the ownership structure shall be made in accordance with the following:
 
   (i)   All entities and individuals with a financial interest shall be disclosed to DCR.  This includes all entities in a multi-layer business structure, as well as the chief financial officer, members of the board of directors, partners, trustees, and all Persons who have control of a trust, and managing members or non-members managers of the entity. Each entity disclosed as having a financial interest must disclose the identities of Persons until only individuals remain.
 
   (ii)    If at least one existing Owner is not transferring his or her ownership interest and will remain as an Owner under the new structure, the business may continue to operate if a Temporary Approval or License has been issued while DCR reviews the eligibility of the new Owner(s) pursuant to Section 104.03(a)(1) and (2).
 
   (iii)   If all Owners will be transferring their ownership interest, the Applicant or Licensee shall resubmit all application documents and pay all required application fees.  The business shall not operate under the new ownership structure until a new License has been issued by DCR.
 
   (iv)   A change of ownership does not occur when one or more Owners leave the business by transferring their ownership interest to the other existing Owner(s).
 
   (v)   In cases when an Owner leaves the business by transferring their ownership interest to other existing Owner(s), written approval shall be required from the Owner that is transferring the ownership interest.
 
   3.   Legal Entity Name Change.  Business entities formed as corporations, limited partnerships or limited liability companies must register with the California Secretary of State and provide the Entity (File) Number to DCR upon application submission.  Applications, Temporary Approvals, or Licenses may change the legal entity name under which the Application, Temporary Approval, or License was submitted or issued, provided that the Entity (File) Number registered with the Secretary of State remains the same.  The Applicant shall submit an amendment request form and pay the required modification fee pursuant to Section 104.19 within 10 days of the date the invoice is issued.  DCR may require that the Applicant or Licensee submit the documents to demonstrate that the changes have been filed with the Secretary of State or approved by the State agency or agencies.  DCR may require that a new Application be submitted if it determines that the Application, Temporary Approval, or License has been sold, leased, lent, or otherwise transferred to another Person and shall deem the existing Application abandoned.  Any new Application will be considered in the order received with respect to sensitive uses and, if applicable, to activities subject to Undue Concentration.
 
   4.   Physical Modification of Business Premises.  An Applicant or Licensee shall not perform interior physical modifications, alterations, additions, or expansions of the Business Premises without written approval from DCR.  The Applicant or Licensee shall submit an amendment request form and pay the required modification fees pursuant to Section 104.19.  Requests to modify the Business Premises shall comply with the following:
 
   (i)   Expansion of the Business Premises shall be limited to 500 square feet or 20 percent of the existing Business Premises floor area, whichever is less, and shall comply with Article 5, Chapter X of the Los Angeles Municipal Code.
 
   (ii)   The Applicant or Licensee shall submit a proposed Business Premises diagram which clearly indicates the proposed construction, alterations, addition, or expansion of the Business Premises.  The diagram shall be drawn to scale (1/8" = 1' - 0" minimum scale) with dimensions and indicate the existing floor area, the added floor area, and clearly label each Commercial Cannabis Activity on the Business Premises and all ancillary uses.
 
   (iii)   An Applicant or Licensee may increase the cultivation area within the existing Business Premises, or may expand the existing Building Premises floor area in accordance with Paragraph (i), provided that the resulting cultivation area does not exceed the maximum cultivation area allowed for the license type under which the Application was submitted.
 
   (iv)   Additional Requirements.  If applicable, DCR may require: (1) a copy of an executed lease with proof of a deposit or property deed if the expansion includes additional adjacent units; (2) landowner acknowledgement that the Applicant or Licensee has the right to occupy the Business Premises; (3) a site plan if the Business Premises diagram has been expanded; and (4) any additional documents or information DCR deems necessary to consider the request.
 
   5.   Fictitious Business Name Change.  Applicants who register a Fictitious Business Name (FBN) with the Los Angeles County Registrar must provide the FBN to DCR upon application submission.  A new FBN, or a change to the existing FBN after the Application is submitted, must be requested by submitting an amendment request form and paying the required modification fees pursuant to Section 104.19.  The Applicant or Licensee shall submit the necessary documents to demonstrate that the changes have been registered with the Los Angeles County Registrar and approved by the State. 
 
   6.   Other Amendments.  DCR may consider other application amendments on a case-by-case basis.  The Applicant or Licensee shall submit an amendment request form and pay the required modification fees to Section 104.19.
 
   (f)   Calculation of Time.  Unless otherwise specified, when the final day for the filing of an application or appeal, or the payment of fees, falls on a Saturday, Sunday or City holiday, the time for filing shall be extended to the close of the next Business Day, and the effective or final date of any action, decision or determination shall be extended by the same amount of time.