(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.