(Title and Section Amended by Ord. No. 186,703, Eff. 7/10/20.)
(b) Type 10 Application Processing – Round 1.
1. Social Equity Individual Applicant Verification. For a period of 60 calendar days, beginning on a date at DCR’s sole discretion, an individual may apply to be verified as a Tier 1 or Tier 2 Social Equity Individual Applicant as defined in Section 104.20(a). DCR’s determination of whether an individual is a Social Equity Individual Applicant shall be made with no hearing, is final and not appealable. (Amended by Ord. No. 187,095, Eff. 7/1/21.)
2. Application Period. DCR shall, on a date starting at its sole discretion, accept Type 10 applications for processing under this subsection for a period of 14 calendar days, provided that DCR posts written notice of the processing period on its website at least 15 calendar days before the start date of the processing period. DCR shall not accept or process applications under this subsection before it has made technical assistance available for a period of at least 45 calendar days to prospective or verified Social Equity Applicants, as defined in Section 104.20.
3. To be eligible to apply in Round 1, an Applicant shall have an individual Owner that is a Tier 1 or Tier 2 Social Equity Individual Applicant verified pursuant to this subsection and who owns an Equity Share in the Applicant that meets the requirements of Section 104.20(a). An individual may not be the Tier 1 or Tier 2 Social Equity Individual Applicant for more than one Applicant in Round 1. An individual who is an Owner of an EMMD shall not be eligible to be the Tier 1 or Tier 2 Social Equity Individual Applicant for an Applicant, but may be an Owner of an Applicant if otherwise allowed under this article.
4. During the 14-calendar-day application period, an Applicant shall submit, in a form and manner determined by DCR, an application that includes all of the following: (1) a copy of an executed lease agreement or property deed for its Business Premises; (2) an ownership and financial interest holder form; (3) a financial information form; (4) a Business Premises diagram; (5) proposed staffing and security plans; (6) a dated radius map including horizontal lines and labeling of any sensitive uses relative to a Type 10 License; (7) a labor peace agreement attestation form; (8) an indemnification agreement provided by DCR; and (9) all business records and agreements necessary to demonstrate that a Tier 1 or Tier 2 Social Equity Applicant owns the minimum Equity Share in the Applicant required under Section 104.20. (Amended by Ord. No. 187,095, Eff. 7/1/21.)
5. An Applicant’s Business Premises shall meet the following requirements:
(i) The Business Premises meets all applicable requirements of Article 5 of Chapter X of this Code;
(ii) The Business Premises is outside of a 700-foot radius of another Type 10 Applicant’s Business Premises, as measured in the manner specified in Section 105.02(b) of this Code. If two or more Round 1 Applicants’ Business Premises are within a 700-foot radius of one another, the Applicant who first submitted an application that meets the requirements of this subsection shall be eligible for further processing and all other Round 1 Applicants within a 700-foot radius of the first Applicant shall be ineligible for further processing in Round 1.
(iii) The Business Premises is not subject to a finding of Undue Concentration. For purposes of this subsection only, DCR shall determine whether the Business Premises is subject to a finding of Undue Concentration based upon the time and date an Applicant submitted an application that meets the requirements of this subsection.
6. The first 75 Tier 1 Applicants and the first 25 Tier 2 Applicants who meet the requirements of this subsection shall be eligible for further processing pursuant to Section 104.06. If less than 75 Tier 1 Applicants meet the requirements of this subsection, DCR may process additional Tier 2 applications, based upon the time and date of application submission, until DCR has identified 100 Tier 1 and Tier 2 Applicants who meet the requirements of this subsection. All Applicants who submitted an application that are not eligible for further processing and qualify under Section 104.06.1(c)(3) may apply for Type 10 Application Processing - Round 2. (Amended by Ord. No. 187,095, Eff. 7/1/21.)
7. DCR shall, subject to review of any applications previously deemed ineligible as described below, process Applications up to and including DCR Record No. LA-C-19-310245-R-APP from the list published by DCR titled “Phase 3 Retail Round 1 Submissions (09/03/19, 10 am to 09/17/2019, 10 am)”, dated September 26, 2019. Notwithstanding any prior notice and/or action by DCR, a Social Equity Individual Applicant that was deemed ineligible for further processing due to a Community Plan Area having reached Undue Concentration on or after September 3, 2019, the failure to submit proof of deposit, or due to proximity to a Sensitive Use, subject to relocation, may be deemed eligible for further processing if all other requirements are met. Applications deemed eligible for further processing under Section 104.06.1(b)(6) as of January 1, 2020, and Applications deemed eligible for further processing under Section 104.06.1(b)(7) after January 1, 2021, shall not be included in the calculation of Undue Concentration. (Amended by Ord. No. 187,879, Eff. 6/2/23.)
8. An Applicant shall pay all required application fees pursuant to Section 104.19 within 30 days of being issued an invoice by DCR or its application shall be deemed abandoned. (Amended by Ord. No. 186,919, Eff. 2/24/21.)
(c) Type 10 Application Processing – Round 2.
1. Applicant Eligibility Verification. DCR shall establish a 60 calendar day eligibility verification period for individuals to apply to be verified under the revised eligibility criteria in Section 104.20(b). An Applicant shall pay the SEIA Eligibility Verification Fee pursuant to Section 104.19(a) within 30 days of being issued an invoice by DCR. DCR shall have at least 90 calendar days to determine Social Equity Applicant eligibility which shall not run concurrently with the 60-calendar day eligibility verification period. DCR’s determination of whether an individual is a Social Equity Individual Applicant shall be made with no hearing, is final and not appealable. (Amended by Ord. No. 186,919, Eff. 2/24/21.)
2. Registration Period. DCR shall, on a date beginning at its sole discretion, accept registrations for an Application lottery under this subsection for a period of 30 calendar days from verified Social Equity Individual Applicants, as defined in Section 104.20(b). DCR shall not accept registrations under this subsection before it has made technical assistance available for a period of at least 45 calendar days to prospective or verified Social Equity Individual Applicants. (Amended by Ord. No. 187,459, Eff. 4/15/22.)
3. Social Equity Individual Applicant. To be eligible to participate in the Application lottery pursuant to Subsection (c)(4), the Applicant shall have an individual Owner that is a Social Equity Individual Applicant verified pursuant to Subsection (c)(1). The Social Equity Individual Applicant must have a prior California Cannabis Arrest or Conviction and must also meet one of the following two criteria, as defined in Section 104.20(b)(1)(i): (1) Low-Income; or (2) ten years’ cumulative residency in Disproportionately Impacted Area. A Social Equity Individual Applicant shall be disqualified from participating in the Application lottery for any of the offenses specified in Section 104.03(a)(1) or for any of the circumstances in Section 104.03 (a)(2).
4. Application Lottery. Verified Social Equity Individual Applicants who have registered pursuant to subdivision 2 shall be entered into an Application lottery. DCR may identify as many Social Equity Individual Applicants eligible for further processing through an Application lottery as there are total available Licenses in Community Plan Areas that have not reached Undue Concentration. Social Equity Individual Applicants shall be randomly selected during the lottery, which shall take place at a location, date and time determined by DCR in its sole discretion. DCR shall post a notice at least 15 calendar days prior to the lottery, which shall include the procedures and protocol to conduct the lottery and information regarding how the public can view or live stream the event. Applications drawn at the lottery shall be processed pursuant to Section 104.06.1(c)(5). (Amended by Ord. No. 187,459, Eff. 4/15/22.)
5. Business Premises. Social Equity Individual Applicants selected during the Application lottery shall have until December 31, 2026, to submit their Pre-Application Record using a compliant property in any Community Plan Area that has not reached Undue Concentration on a first come, first served basis until each Community Plan Area has reached Undue Concentration. Social Equity Individual Applicants shall submit a Pre-Application Record through the DCR Licensing Portal, including all documents as determined by DCR, and pay a Pre- Application Review Fee pursuant to Section 104.19 for DCR to determine the eligibility of a proposed Business Premises location pursuant to Section 104.03(a) and Article 5 of Chapter X of this Code. Pre-Application Records shall be processed by DCR in the order filed. A Social Equity Individual Applicant whose Business Premises location is deemed ineligible under Section 104.03(a) and/or Article 5 of Chapter X of this Code shall be permitted to submit new Pre- Application Record(s) identifying new Business Premises location(s), subject to the payment of any applicable fee in Section 104.19, and provided that the new Business Premises location(s) is submitted prior to December 31, 2026. If the Pre-Application Record is eligible for further processing, the Social Equity Individual Applicant shall submit an Annual License Application through the DCR Licensing Portal, including all required information, forms, and documents, within one (1) calendar year of the date DCR notifies the Applicant by electronic mail that the Pre-Application Record is eligible for further processing. (Amended by Ord. No. 188,069, Eff. 12/15/23.)
6. Additional Application Lottery. If additional capacity is available in any Community Plan Area after a lottery ends, DCR will hold another lottery pursuant to Subsection (c)(4).
7. Application Fees. An Applicant shall pay all required application fees pursuant to Section 104.19 within 30 days of being issued an invoice by DCR, or the application shall be deemed abandoned. (Amended by Ord. No. 186,919, Eff. 2/24/21.)
(d) Public Convenience or Necessity Application Processing. (Amended by Ord. No. 187,095, Eff. 7/1/21.) In addition to Type 10 applications processed in Round 1 and Round 2 under this section, on or after September 3, 2019, DCR shall process any Type 10 application with a Business Premises located in a Community Plan Area that has reached Undue Concentration if the Applicant meets the following requirements:
1. The Applicant has an individual Owner who is a Social Equity Individual Applicant who has been verified pursuant to Section 104.20;
2. The Applicant submits a Pre-Application and pays a Pre-Application Review Fee pursuant to Section 104.19 for DCR to determine compliance of the Business Premises location pursuant to Section 104.03(a)(3) and Article 5 of Chapter X of this Code;
3. The Business Premises location complies with Section 104.03(a)(3) and Article 5 of Chapter X of this Code, and the Applicant submits, in a form and manner determined by DCR, all required documents and information;
4. The City Council, pursuant to Section 104.03(a)(4), has found that approval of the application would serve public convenience or necessity;
5. Applicants who submit an application that meets the requirements of Subdivisions 1., 2., 3. and 4. of this subsection shall then submit a Temporary Approval Application Fee pursuant to Section 104.19 within 30 days of the City Council’s action becoming final. Applicants shall also submit, in a form and manner determined by DCR, the information and documents required in Section 104.06(d). An Applicant who fails to meet these requirements in the time allotted by DCR shall have its application deemed abandoned.
6. Applicants who submit an application that meets the requirements of this subsection shall be eligible for further processing pursuant to Section 104.06.
7. An Applicant shall pay all required application fees under Section 104.19 within 30 days of being issued an invoice by DCR or its application shall be deemed abandoned.
(e) Type 9 Application Processing.
1. Applicant Eligibility Verification. Social Equity Individual Applicants verified pursuant to Section 104.20(a) or (b) may participate in application processing under this subsection. DCR’s determination of whether an individual is a Social Equity Individual Applicant shall be made with no hearing, is final and not appealable.
2. Application Period. DCR shall, on a date beginning at its sole discretion, accept applications for processing under this subsection, provided that it posts written notice on its website at least 15 calendar days before the start date of the processing period. To be eligible for processing under this subsection, a Type 9 Applicant shall submit the following application documents: (1) a copy of an executed lease agreement with proof of a deposit or property deed for its Business Premises; (2) a Business Premises diagram; and (3) a dated radius map including horizontal lines and labeling of any sensitive uses relative to a Type 9 License.
3. An Applicant who submitted a complete application pursuant to Subsection (b) of this section, but was ineligible for further processing because its Business Premises was in a Community Plan Area that reached Undue Concentration or was within a 700-foot radius of another Type 10 application, shall receive priority processing for a Type 9 License relative to all other Social Equity Applicants applying for Type 9 License.
4. Application Fees. An Applicant shall pay all required application fees pursuant to Section 104.19 within 30 days of being issued an invoice by DCR, or its application shall be deemed abandoned. (Amended by Ord. No. 186,919, Eff. 2/24/21.)
(f) Non-Retail Application Processing.
1. Applicant Eligibility Verification. Social Equity Applicants verified pursuant to Section 104.20(a) or (b) may participate in application processing under this subsection. DCR’s determination of whether an individual is a Social Equity Individual Applicant shall be made with no hearing, is final and not appealable.
2. Application Period. DCR shall, on a date beginning at its sole discretion, accept applications for processing under this subsection, provided that it posts written notice on its website at least 15 calendar days before the start date of the processing period. To be eligible for processing under this subsection, an Applicant shall submit the following application documents: (1) letter from the landlord or other evidence of a legal right to occupy the Business Premises; (2) a Business Premises diagram; and (3) a dated radius map including horizontal lines and labeling of any sensitive uses relative to a Type 10 License. (Amended by Ord. No. 187,095, Eff. 7/1/21.)
3. Application Fees. An Applicant shall pay all required application fees pursuant to Section 104.19 within 30 days of being issued an invoice by DCR, or its application shall be deemed abandoned. (Amended by Ord. No. 186,919, Eff. 2/24/21.)