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SEC. 104.06.1.  SOCIAL EQUITY PROGRAM COMMERCIAL CANNABIS ACTIVITY APPLICATION PROCESSING.
   (Title and Section Amended by Ord. No. 186,703, Eff. 7/10/20.)
 
   (a)   DCR shall process an Application under this section consistent with Section 104.20(c)(4)(i).  Applications that meet the requirements of this section shall be eligible for further processing pursuant to Section 104.06.
 
   (b)   Type 10 Application Processing – Round 1.
 
   1.   Social Equity 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.
 
   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 the following: (1) a copy of an executed lease agreement with proof of a deposit 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.
 
   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 may apply for Type 10 Application Processing - Round 2.
 
   7.   DCR shall, subject to review of any applications previously deemed ineligible as described below, process the next 100 Applicants 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.  Applicants that were deemed ineligible for further processing due to a Community Plan Area having reached Undue Concentration on or after September 3, 2019 or due to sensitive use created by a Phase 3 Retail Round 1 Type 10 Retailer application shall be included in the next 100 Applicants.  Applications eligible for further processing under Section 104.06.1(b)(6) as of January 1, 2020 shall not be included in the calculation of Undue Concentration, as defined in Section 104.01(a)(48).
 
   8.   An Applicant shall pay all required application fees pursuant to Section 104.19 within 10 days of being issued an invoice by DCR or its application shall be deemed abandoned.
 
   (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 10 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.
 
   2.   Application Period.  DCR shall, on a date beginning at its sole discretion, accept Type 10 applications for processing under this subsection for a period of 30 calendar days.  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(b).
 
   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 Applicants shall be entered into an Application lottery.  Social Equity Applicants shall be randomly selected during the lottery, which shall take place at a location, date and time determined by DCR, until Undue Concentration is reached citywide.  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 Subsection (c)(5).
 
   5.   Business Premises.  Social Equity Applicants selected during the Application lottery shall be afforded one year to find a compliant property in any Community Plan Area that has not reached Undue Concentration.  A Social Equity Individual Applicant's Business Premises location is subject to Chapter 5, Article X of this Code and shall comply with Section 104.03(a)(3).  Business Premises locations shall be reviewed and approved in the order received by DCR.  An Applicant whose Business Premises location is deemed ineligible under Section 104.03(a)(3) shall be permitted to amend their Application subject to the payment of any applicable fee in Section 104.19, and provided that the new Business Premises location is submitted to DCR within the one year time limitation.  Social Equity Applicants shall comply with the Equity Share requirements in effect at the time DCR deems the location eligible under Section 104.03(a)(3).
 
   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 10 days of being issued an invoice by DCR, or the application shall be deemed abandoned.
 
   (d)   Public Convenience or Necessity Application Processing.  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 of 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, in a form and manner determined by DCR, all documents and information required under Subsection (b)(4);
 
   3.   The first 150 Applicants who submit an application that meets the requirements of Subdivision 2. of this subsection shall then each have 90 calendar days, beginning on a date determined by DCR at its sole discretion, to submit, in a form and manner determined by DCR, 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; 3) proposed staffing and security plans; 4) a dated radius map including horizontal lines and labeling of any sensitive uses relative to a Type 10 License; 5) an indemnification agreement; 6) an ownership and financial interest holder form; and 7) 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.  An Applicant who fails to timely meet these requirements shall have its application deemed abandoned.
 
   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.    The first 150 Applicants who submit an application that meets the requirements of this subsection shall be eligible for further processing pursuant to Section 104.06.  DCR may process additional applications that meet the requirements of this subsection and based on date and time submitted until each Community Plan Area has reached Undue Concentration for Type 10 Licenses.
 
   6.   An Applicant shall pay all required application fees under Section 104.19 within 10 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 10 days of being issued an invoice by DCR, or its application shall be deemed abandoned.
 
   (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, a Type 9 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.
 
   3.   Application Fees.  An Applicant shall pay all required application fees pursuant to Section 104.19 within 10 days of being issued an invoice by DCR, or its application shall be deemed abandoned.