Loading...
(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 Temporary Approval has been revoked;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.
(Title and Section Amended by Ord. No. 187,879, Eff. 6/2/23.)
(a) Temporary Approval Application – Filing. A Temporary Approval Application shall be filed following: (1) a determination that the Pre-Application Record is eligible for further processing pursuant to Section 104.03(a); (2) the submission to DCR’s Licensing Portal of all completed Temporary Approval information, forms, and documents required by the Rules and Regulations; and (3) and the payment of the applicable application fee(s) for each Commercial Cannabis Activity pursuant to Section 104.19. The Temporary Approval Application shall be abandoned if requested information or documents are not submitted, or fees are not paid, within the allotted time.
(b) Temporary Approval. DCR may, at its discretion, issue Temporary Approval to engage in Commercial Cannabis Activity, provided that the Applicant pays the Temporary Approval Application Fee for each Commercial Cannabis Activity, pursuant to Section 104.19
, and the following requirements are met: (1) the Temporary Approval Application is filed pursuant to subsection (a); (2) the Business Premises passes an Initial Inspection; and (3) if applicable, any Applicant subject to Section 104.20 provide all business records and agreements necessary to demonstrate that the Social Equity Individual Applicant owns at least the minimum Equity Share required under Section 104.20(a)(2). An Applicant seeking Temporary Approval shall submit all required information, forms, and documents through the DCR Licensing Portal 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, or the Temporary Approval Application shall be abandoned pursuant to Section 104.03(f).
(c) Issuance of Temporary Approval does not create a vested right in the holder to either a renewal of the Temporary Approval, or to the issuance of a subsequent Annual License. Temporary Approval authorizes the Licensee to conduct Commercial Cannabis Activity(ies), subject to the Licensee obtaining all necessary permits, licenses, or other authorizations required by law from the City, State or other public agencies. Temporary Approval does not waive or otherwise circumvent other City or State requirements or necessary permits from the City, State, or other public agencies, including, but not limited, to, a Certificate of Occupancy, permit or authorization of the Los Angeles Fire Department, health permit from the County of Los Angeles, or a State License. A Licensee with Temporary Approval shall follow all applicable Rules and Regulations as would be required if the Applicant held an Annual License of the same type.
(d) If, at any time during the processing of an Application or after the issuance of Temporary Approval, it is discovered that an Application has been improperly prepared or required information, forms or documents have not been submitted in accordance with this article or the Rules and Regulations, upon notification to the Applicant, processing of that Application shall be suspended until the Application has been corrected or the required information, forms or documents are provided.
(e) DCR shall cease accepting new Temporary Approval Applications from any Applicant not subject to Section 104.20 by June 30, 2023. (Amended by Ord. No. 188,069, Eff. 12/15/23.)
(f) DCR shall cease accepting new Temporary Approval Applications from Social Equity Applicants by July 31, 2023. (Amended by Ord. No. 188,069, Eff. 12/15/23.)
(g) DCR may grant Temporary Approval through an Annual License Application to any Applicant subject to Section 104.20 seeking to conduct Storefront Retailer Commercial Cannabis Activity until January 1, 2031, provided the Applicant has an active State provisional license or State annual license and submits an Application prior to August 31, 2030. (Amended by Ord. No. 188,069, Eff. 12/15/23.)
(h) DCR may renew Temporary Approval for Social Equity Licensees conducting Storefront Retailer Commercial Cannabis Activity until February 28, 2031. DCR may renew Temporary Approval for all other Licensees until February 28, 2027. (Amended by Ord. No. 188,069, Eff. 12/15/23.)
(i) Any Temporary Approval issued for calendar year 2031 may not be renewed and shall expire on December 31, 2031, after 11:59 p.m. (Added by Ord. No. 188,069, Eff. 12/15/23.)
(j) Any Temporary Approval Application abandoned under Section 104.03(f) after July 1, 2023, shall be refiled as an Annual Application. (Added by Ord. No. 188,069, Eff. 12/15/23.)
(Title and Section Amended by Ord. No. 187,879, Eff. 6/2/23.)
(a) Annual License Application – Filing. An Annual License Application shall be filed following: (i) the issuance of Temporary Approval pursuant to Section 104.05 or a determination that the Pre-Application Record is eligible for further processing pursuant to Section 104.03(a); (ii) the submission to DCR’s Licensing Portal of all completed Annual License Application information, forms, and documents required by the Rules and Regulations; (iii) the submission of a complete project description pursuant to Subsection (d); (iv) the payment of the applicable application fee(s) for each Commercial Cannabis Activity pursuant to Section 104.19; and (v) payment of the applicable environmental assessment fee pursuant to Section 104.19. 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. The Annual License Application shall be abandoned if requested information or documents are not submitted, or fees are not paid, within the allotted time.
(b) Annual Licenses for Storefront Retailer Commercial Cannabis Activity or Microbusiness with On-Site Sales (Types 10 and 12).
1. Within 30 days of the filing of an Annual Application for Storefront Retailer Commercial Cannabis Activity or Microbusiness with on-site sales pursuant to Subsection (a), DCR shall send a Notice of Complete Application by electronic mail to: (1) the Applicant; (2) the closest Neighborhood Council; (3) the relevant business improvement district, if one exists; and (4) and the City Council Office within which the Business Premises is situated. The notice shall contain the following information: purpose of the notice, name of the Applicant, Application number, Business Premises address, Commercial Cannabis Activities requested, and the Council District and Community Plan Area in which the Business Premises is located. The notice shall also inform interested parties about how to provide DCR with information about the Application. DCR shall also post the notice to its website.
(i) After receipt of the Notice of Complete Application, the Applicant shall pay the required Community Meeting Fee pursuant to Section 104.19 within 30 days from the date of the invoice.
(ii) Within 10 days of receipt of the Notice of Complete Application for Storefront Retailer or Microbusiness Commercial Cannabis Activity with on-site sales, the Applicant or a designated representative shall contact the Neighborhood Council in which the Storefront Retailer Commercial Cannabis Activity or Microbusiness is located and offer to appear before the Neighborhood Council to address questions about the Application. Written evidence of the Applicant’s offer to appear shall be provided to DCR, such as an email to the Neighborhood Council or a copy of the meeting minutes.
(iii) Within 45 days of sending a Notice of Complete Application, DCR shall conduct a community meeting via video or telephone conferencing, or in-person within the defined geographic area of the Area Planning Commission within which the Business Premises is situated. DCR shall provide notice of the community meeting no less than 20 days prior to the date of the community meeting.
(A) The notice of meeting shall contain the following information: date, time and place where the meeting or public hearing will be held, or if the meeting will be held via video or telephone conferencing, a link to the virtual meeting. The notice also shall include: the purpose of the meeting, name of the Applicant, Application number, Business Premises address, Commercial Cannabis Activities requested, and the Council District and Community Plan Area in which the Business Premises is located. The notice shall inform interested parties how to provide DCR with information about the Application.
(B) DCR shall send the notice by U.S. mail to: (1) the Applicant; (2) Applicant’s Owners and Authorized Agent(s), as defined by the Rules and Regulations; and (3) the owners and occupants of all property within 700 feet of the property line of the lot on which the proposed Business Premises is located. For the purpose of notification of property owners, the last known name and address of owners as shown on the records of the City Engineer or the records of the County Assessor shall be used. For occupants, the notice shall be addressed to “occupant” and mailed to all property addresses within the 700-foot radius. Where all property within the 700-foot radius is under the same ownership as the Business Premises, the owners of all property that adjoins that ownership, or is separated from it only by a street, alley, public right-of-way or other easement, shall also be notified as set forth above.
(C) DCR shall post the notice on its website and shall send the notice by electronic mail to: (1) the closest Neighborhood Council; (2) the relevant business improvement district, if one exists; and (3) the City Council Office within which the Business Premises is situated. The Applicant shall post the notice in conspicuous place on the property where the Business Premises is located. The posted notice shall be provided by DCR electronically and printed by the Applicant on a minimum of 11" x 17" paper size with a minimum 20 font size. The notice shall be posted immediately upon receipt.
(iv) At the community meeting, DCR shall accept written and oral testimony regarding the Application and then prepare a written report to the Commission summarizing the testimony in favor and against the Application.
2. Within 90 days of the date DCR sends a Notice of Complete Application, DCR shall either deny the issuance of the Annual License with no hearing, or make a recommendation to the Commission to issue the Annual License. The date of the recommendation shall be the date when DCR transmits its report to the Commission for consideration. Except as otherwise permitted under Section 104.07, Type 10 Licenses shall be limited to only Social Equity Applicants, as defined in Section 104.20(a) and (b), until January 1, 2025.
(i) DCR or the Commission may deny the issuance of an Annual License based on written findings for any of the reasons listed in Section 104.04.
(ii) DCR’s decision to deny the issuance of the Annual License is final and effective upon the close of the 15-day appeal period if not timely appealed to the Commission by the Applicant as provided in Section 104.10. There is no further appeal to the City Council. A final denial or exhaustion of all administrative appeals shall terminate any active Temporary Approval.
(iii) If DCR recommends approval of the Application, the Commission shall make the determination whether to issue the Annual License after it conducts a public hearing. Notice of the hearing shall be provided as described in subsection (b)(1)(iii)(A) - (C) no less than 20 days prior to the date of the hearing.
(iv) The Commission shall consider the decision by DCR to recommend approval of the Application, the written summary of the community meeting prepared by DCR, the record before DCR, and any written information and oral testimony timely provided to the Commission.
(v) The Commission’s decision to deny the issuance of the Annual License is final and effective upon the close of the 15-day appeal period if not timely appealed to the City Council by the Applicant as provided in Section 104.10. A final denial of an Annual License after exhaustion of all administrative appeals shall terminate any active Temporary Approval.
(vi) The Commission may approve the issuance of the Annual License with written findings supported by evidence in the record that the Applicant and Business Premises meet the requirements of this article. The Commission may impose conditions to address public safety concerns based on evidence in the record. The Commission shall not approve the issuance of an Annual License for an Applicant subject to a finding of Undue Concentration unless the City Council has found that approval of the Application would serve a public convenience or necessity. The issuance of an Annual License is not appealable.
3. If at any time during the processing of an Annual License Application it is discovered that an Annual License Application has been improperly prepared or required information, forms or documents have not been submitted in accordance with this article or the Rules and Regulations, upon notification to the Applicant, processing of that Annual License Application shall be suspended until the Annual License Application has been corrected or the required information, forms or documents are provided.
4. Unless the Licensee holds an active Temporary Approval, the issuance of an Annual License shall not authorize the Licensee to conduct Commercial Cannabis Activity until an Operating Permit is issued pursuant to Subsection (e). After an Annual License is issued, the Licensee shall obtain an Operating Permit before conducting Commercial Cannabis Activity.
5. After the issuance of an Annual License by the Commission, DCR may deny the renewal of the Annual License for any of the reasons stated in Section 104.04 based upon written findings supported by evidence in the record. The Licensee may request an administrative hearing pursuant to Section 104.14.
(c) Annual Licenses for All Other Commercial Cannabis Activity. For Commercial Cannabis Activity that is not Retailer Commercial Cannabis Activity or Microbusiness with on-site sales, within 30 days of the filing of an Annual Application pursuant to Subsection (a), DCR shall send a Notice of Complete Application by electronic mail to the Applicant. DCR shall either deny the issuance of the Annual License with no hearing at any time during application processing, or, within 90 days of the date DCR sends a Notice of Complete Application, approve the issuance of the Annual License with no hearing. Except as otherwise permitted under Sections 104.07 and 104.08, Types 1A, 1C, 2A, 3A, 4, 5A and 9 Licenses shall be limited to only Social Equity Applicants, as defined in Section 104.20(a) and (b), until January 1, 2025.
1. DCR may deny the issuance of the Annual License with written findings supported by evidence in the record for any of the reasons listed in Section 104.04. DCR’s decision to deny the issuance of the Annual License is final and effective upon the close of the 15-day appeal period if not timely appealed to the Commission by the Applicant as provided in Section 104.10. There is no further appeal to the City Council. A final denial of an Annual License upon exhaustion of all administrative appeals shall terminate any active Temporary Approval.
2. DCR may approve the issuance of the Annual License with the imposition of conditions to address public safety concerns. The issuance of an Annual License is not appealable.
3. If at any time during the processing of an Annual License Application it is discovered that an Annual License Application has been improperly prepared or required information, forms or documents have not been submitted in accordance with this article or the Rules and Regulations, upon notification to the Applicant, processing of that Annual License Application shall be suspended until the Annual License Application has been corrected or the required information, forms or documents are provided.
4. Unless the Licensee holds an active Temporary Approval, the issuance of an Annual License shall not authorize the Licensee to conduct Commercial Cannabis Activity until an Operating Permit is issued pursuant to Subsection (e). After an Annual License is issued, the Licensee shall obtain an Operating Permit before conducting Commercial Cannabis Activity.
(d) CEQA. Compliance with the California Environmental Quality Act (CEQA).
1. CEQA Definitions. The following definitions shall apply in this subsection:
(i) “CEQA” means the California Environmental Quality Act, California Public Resources Code Sections 21000 et seq. (CEQA Guidelines, Section 15353.)
(ii) “Environment” means the physical conditions existing within the area which will be affected by a proposed project including land, air, water, minerals, flora, fauna, ambient noise, and objects of historical or aesthetic significance. The area involved shall be the area in which significant effects would occur either directly or indirectly as a result of the project. The “environment” includes both natural and human- made conditions. (CEQA Guidelines, Section 15360.)
(iii) “Lead Agency” means the public agency which has the principal responsibility for carrying out or approving a project. The Lead Agency will decide whether an EIR or Negative Declaration will be required for the project and will cause the document to be prepared. Criteria for determining which agency will be the Lead Agency for a project are contained in Section 15051. (CEQA Guidelines, Section 15367.)
(iv) “Project” means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment as defined by CEQA Guidelines Section 15378.
(v) “Responsible Agency” means a public agency which proposes to carry out or approve a project, for which a Lead Agency is preparing or has prepared an EIR or Negative Declaration. For the purposes of CEQA, the term “Responsible Agency” includes all public agencies other than the Lead Agency which have discretionary approval power over the project. (CEQA Guidelines, Section 15381.)
(vi) “Significant Effect on the Environment” means a substantial, or potentially substantial, adverse change in any of the physical conditions within the area affected by the project, including land, air, water, minerals, flora, fauna, ambient noise, and objects of historic or aesthetic significance. An economic or social change by itself shall not be considered a significant effect on the environment. A social or economic change related to a physical change may be considered in determining whether the physical change is significant. (CEQA Guidelines, Section 15382.)
2. Upon the submission of an Annual License Application containing a complete project description for a License, and payment of all applicable fees, DCR shall determine whether the Project has been subject to environmental review under CEQA within the previous five years, and, if not, what form of environmental review for the License is appropriate. If DCR acts as the local Lead Agency under CEQA, it may, at its sole discretion and subject to its own independent review and discretion for purposes of approval, request that the Applicant prepare the applicable CEQA documentation which may include: reliance on one or more categorical or statutory exemptions, a negative declaration or mitigated negative declaration, an environmental impact report, a sustainable communities environmental assessment, an addendum or other document provided by CEQA. The Commission shall delegate the following actions to DCR when it considers the issuance of an Annual License: (1) certification of an environmental impact report; (2) adoption of a negative declaration or mitigated negative declaration; or (3) a written determination that a project is not subject to CEQA. If a potentially Significant Effect on the Environment is identified, DCR or, if applicable, the Commission or its designee shall adopt one or more findings, supported by substantial evidence in the record, consistent with Public Resources Code Sections 21081 and 21081.6, and CEQA Guidelines Section 15091. Alternatively, if DCR acts as a Responsible Agency under CEQA, DCR or, if applicable, the Commission or its designee, prior to approval of an Annual License, shall consider the Lead Agency’s environmental document and make the findings required by Public Resources Code Section 21081, and CEQA Guidelines Sections 15096(g) - (h) and 15050(b).
3. Appeals concerning CEQA compliance for projects subject to this chapter shall be filed pursuant to the procedures in LAMC Section 197.01 et seq. The issuance of an Annual License by DCR or the Commission is not appealable.
4. The renewal of an Annual License with no changes to the Business Premises or Commercial Cannabis Activity is a ministerial approval exempt from the requirements CEQA. (See CEQA Guidelines Sections 15369 and 15268(b)(2).)
(e) Operating Permits. Unless a Licensee is issued Temporary Approval, an Annual Licensee shall not conduct Commercial Cannabis Activity until the Licensee obtains an Operating Permit from DCR. To obtain an Operating Permit, the Licensee shall: (1) pass a Final Inspection at the Business Premises; and (2) submit to the DCR Licensing Portal all necessary permits, clearances, licenses, or other authorizations required by law from the City, State or other public agencies, including a Certificate of Occupancy, which may include clearance from the Los Angeles Fire Department and the Department of Water and Power, a permit from the Los Angeles County Department of Public Health, and a corresponding State License. The Licensee shall ensure that all permits or clearances from other agencies match the correct Business Premises location, the Business Premises diagram submitted to DCR, and relevant Commercial Cannabis Activities as the License. If the Licensee is engaged in Storefront Retailer or Microbusiness Commercial Cannabis Activity with on-site sales, the Licensee also shall obtain an Emblem Placard as required in Section 104.23. The issuance of an Annual License does not waive or otherwise circumvent other City or State requirements or necessary permits from the City, State, or other public agencies.
1. DCR shall conduct Final Inspections in the manner as provided in the Rules and Regulations. DCR may require periodic inspections to determine whether the Licensee maintains a non-operational status until an Operating Permit is issued.
2. An Annual Licensee conducting Commercial Cannabis Activity without an Operating Permit or Temporary Approval for the relevant Commercial Cannabis Activity is an Unlawful Establishment. If at any time during the processing of an Annual License Application, after the issuance of an Annual License, or during the processing of an Annual License renewal, DCR discovers that an Annual Licensee is an Unlawful Establishment, DCR may deny the Annual License Application, suspend and/or revoke the Annual License, deny the Annual License renewal, or issue a Notice of Violation pursuant to Section 104.13.
3. DCR shall not issue an Operating Permit if the Business Premises is associated with any active NOVs or NTCs issued under Section 104.13.
(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.)
(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.)
(Added by Ord. No. 185,343, Eff. 12/19/17.)
(a) An Applicant who applies for a License for Commercial Cannabis Activity that is not Retailer Commercial Cannabis Activity and who meets the following criteria, as determined by DCR, shall receive Temporary Approval if: (1) the Applicant was engaged prior to January 1, 2016, in the same Commercial Cannabis Activity that was not Retailer Commercial Cannabis Activity for which it now seeks a License; (2) the Applicant is not engaged in Retailer Commercial Cannabis Activity at the Business Premises; (3) the Applicant provides evidence and attests under penalty of perjury that the Applicant was a supplier to an EMMD prior to January 1, 2017; (4) the Business Premises meets all requirements of Article 5 of Chapter X of this Code; (5) the Applicant passes an Initial Inspection; (6) there are no fire or life safety violations on the Business Premises; (7) the Applicant paid all outstanding City business tax obligations; (8) the Applicant provides a written attestation that the Applicant will enter into an agreement with a testing laboratory for testing of all Cannabis and Cannabis products and attests to testing all of its Cannabis and Cannabis products in accordance with state standards; (9) the Applicant attests that the Applicant will cease all operations if denied a State License or City License; (10) the Applicant qualifies under the Social Equity Program as it existed as of January 1, 2020; and (11) the Applicant submits all required and completed information, forms, and documents to meet the Temporary Approval requirements in the Rules and Regulations. DCR may immediately suspend or revoke the Temporary Approval if the Applicant fails to abide by any City operating requirement. For purposes of this subsection only, an Applicant who 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. Prior to determining that an Applicant is eligible for processing under this section, DCR, at its discretion, may provide an Applicant with Local Compliance Underway status to apply for a provisional license from the State. A status of Local Compliance Underway shall not permit an Applicant to conduct Commercial Cannabis Activities unless DCR grants the Applicant Temporary Approval or an Operating Permit. Local Compliance Underway must be renewed annually pursuant to Section 104.12 until a License is issued. (Amended by Ord. No. 187,879, Eff. 6/2/23.)
(b) A completed application accepted by DCR as eligible for processing under this section shall be processed and reviewed pursuant to Section 104.06. DCR may request additional information from the Applicant. DCR shall make written findings when the Applicant does not meet the requirements for processing under this section. DCR’s determination of whether an Applicant is eligible for processing under this section shall be made with no hearing and shall be final and effective 15 days after the date of its mailing if the Applicant does not timely request an administrative hearing, as provided in Section 104.10. (Amended by Ord. No. 186,703, Eff. 7/10/20.)
(c) An Applicant that submitted an application pursuant to this section by September 13, 2018, paid all fees required under Section 104.19, and received from DCR local authorization under this section 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 Non-Retailer 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 Applicant and only by an Applicant at the one Business Premises identified in its application. This limited immunity shall terminate upon the close of the 15-day appeal period if the Applicant does not timely request an administrative hearing, as provided in Section 104.10. 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. (Amended by Ord. No. 186,703, Eff. 7/10/20.)
(e) An Applicant under this section that has not received Temporary Approval shall report to DCR by July 1, 2019, whether it has made substantial progress, as determined by DCR, towards preparing its Business Premises to pass an Initial Inspection. An Applicant who cannot report substantial progress by July 1, 2019, shall have its application deemed abandoned. An Applicant who reports substantial progress by July 1, 2019, shall be required to pass an Initial Inspection by December 31, 2019, or its application shall be deemed abandoned unless DCR grants the Applicant an extension due to extenuating circumstances as determined by DCR in its sole discretion. (Amended by Ord. No. 186,703, Eff. 7/10/20.)
(Amended by Ord. No. 185,629, Eff. 7/2/18.)
An Applicant seeking a Testing Lab License (Type 8) may submit an application to DCR at any time after DCR first accepts applications for any License. If an Applicant obtains or attests that it has or intends to seek ISO/IEC 17025 accreditation for all testing methods required by Title 16, Div. 42 of the California Code of Regulations and meets all laboratory-employee qualifications required by Title 16, Div. 42 of the California Code of Regulations, DCR may issue a Temporary Approval to the testing lab before completion of a pre-licensing inspection. If an Applicant is denied an ISO/IEC 17025 accreditation, its Temporary Approval shall be immediately revoked and it shall immediately cease all Testing Commercial Cannabis Activity.
Loading...