12/7/2018 DCR Bulletin: Phase 2 Priority Processing Eligibility Determination Inspections
This bulletin contains important information about the process by which DCR and the LAFD Cannabis Unit will be inspecting the business premises of Phase 2 Priority Processing applicants.
11/29/2018 UPDATE: Social Equity Program Tier 1 Fee Deferral Program for Phase 2 Priority Processing
At this time, Applicants who applied for a License for Non-Retailer Commercial Cannabis Activity pursuant to Los Angeles Municipal Code (LAMC) Section 104.08 (Phase 2 Priority Processing) and meet the Tier 1 Social Equity Application ownership requirements stated in LAMC Section 104.20(c) may register for the Social Equity Program’s Tier 1 Fee Deferral Program.
Pursuant to LAMC Section 104.20(c), a Tier 1 Social Equity Applicant shall meet the following criteria at time of applying for a License: 1. Low Income and prior California Cannabis Conviction; or 2. Low Income and a minimum of five years cumulative residency in a Disproportionately Impacted Area. A Tier 1 Social Equity Applicant shall own no less than a 51 percent equity share of the business that would benefit from the issuance of the License.
If an applicant registers for the Social Equity Program’s Tier 1 Fee Deferral Program, its application will permanently be deemed a Tier 1 Social Equity Program application. That means that under no circumstance will the applicant be eligible for an annual license as a part of Phase 2 Priority Processing other than as a Tier 1 Social Equity Applicant that meets the 51% equity share requirements, as well as other requirements, proscribed in LAMC Sec. 104.20. Click here to register for the Social Equity Program’s Tier 1 Fee Deferral Program.
11/19/2018 UPDATE: IMPORTANT UPDATE REGARDING PHASE 1
ADDRESS CHANGE REQUESTS
Phase 1 Address Change Service Request Intake Form: This form is used by an EMMD to submit a request to relocate to a new business address in the City. Requests to relocate will be accepted until 4:00 p.m. on Friday, November 30, 2018. DCR requires the following information to process your request:
- Your current business address at which you have Temporary Approval;
- The new business address at which you are seeking Temporary Approval; and,
- A letter of intent from the landlord of the new business address.
The letter of intent must be emailed to DCRLicensing@lacity.org within one hour of submission of this form.
After receipt of this information, DCR will determine whether the new business address complies with the City’s zoning and sensitive use restrictions. If the new business address is compliant, DCR will issue a local authorization letter to allow you to pursue a state temporary license from the state licensing agencies.
If you receive a state temporary license(s) at the new business address, you will not immediately receive Temporary Approval from DCR to operate at that address. DCR will first require that you submit the following information:
- Copy of a state temporary license with the new business address;
- Statement of Information form from the Secretary of State showing new business address;
- Copy of government-issued ID (should match the ID for person who picked up the original L050 BTRC);
- Current lease agreement (showing new business address); and,
- Previous lease agreement (showing old business address) OR a letter of termination from landlord.
Once DCR confirms that you have submitted all required information, it will issue you a supplemental invoice to take to the Office of Finance, which will process the address change in their system and update your BTRC records to reflect the new business address. At that point, you will receive Temporary Approval from DCR to operate at the new address.
11/08/2018 UPDATE: IMPORTANT UPDATE REGARDING PHASE 2 APPLICATIONS
DCR is committed to the development and implementation of a well-regulated commercial cannabis industry in the City of Los Angeles. During the last several weeks, DCR has worked closely with the Los Angeles City Attorney, the Bureau of Cannabis Control (BCC), the California Department of Food and Agriculture (CDFA) and the California Department of Public Health (CDPH), to enable “Phase 2 Priority Processing” applicants to pursue state temporary and provisional licenses before DCR issues Temporary Approval.
“Phase 2 Priority Processing” applicants who have paid their application fees will have the opportunity to apply for a state temporary license before the end of the year. In the coming weeks, DCR will issue Phase 2 applicants a Local Authorization letter that the state agencies have agreed to accept as sufficient for purposes of the state temporary license application. The Local Authorization letter will allow an applicant to engage in commercial cannabis activities only after satisfying all conditions imposed by DCR, including meeting all eligibility criteria under LAMC Sec. 104.08(a). In other words, an applicant will not be authorized to engage in commercial cannabis activities until DCR determines it is eligible for Phase 2 processing and a Temporary Approval. If DCR ultimately determines that an applicant does not meet all eligibility criteria under LAMC Sec. 104.08(a), it will revoke the applicant’s Local Authorization and notify the state licensing agencies of such.
The Local Authorization does not guarantee that an applicant will qualify for a state temporary or provisional license. Every applicant is solely responsible for submitting all documents and information required by the state licensing agencies in their applications, including evidence that compliance with the California Environmental Quality Act is underway. Lastly, CDFA has asked DCR to remind cultivation applicants that they must submit evidence of enrollment with the applicable Regional Water Quality Control Board or State Water Resources Control Board for water quality protection programs or written verification from the appropriate board that enrollment is not necessary.
Given the volume of applications received in Phase 2, DCR anticipates that it will take several more months to complete the eligibility determination process. DCR appreciates applicants’ patience and consideration as we move forward with this process.
You may submit questions regarding the process described above to cannabis@lacity.org under the subject line: Phase 2 Local Authorization Letter.
Phase 2 (LAMC Section 104.08) Application Filing Period is Closed
The Phase 2 application filing period closed at 4 P.M. on Thursday, September 13, 2018. Applicants applying for a License for Non-Retailer Commercial Cannabis Activity pursuant to Los Angeles Municipal Code Section 104.08 must demonstrate that they meet certain eligibility requirements. Among other requirements, Applicants must establish that (1) they were engaged prior to January 1, 2016, in the same type of Non-Retailer Commercial Cannabis Activity for which they now seek a License; (2) they supplied an Existing Medical Marijuana Dispensary (EMMD) prior to January 1, 2017; and (3) they qualify under the Social Equity Program.
Phase 2 applicants may continue to submit and attach Ownership Submittal records to Phase 2 applications that were timely filed. The Department will resume accepting Cannabis Testing Lab applications next week.
Social Equity Program and Phase 2 Application Workshop #2 Meeting Materials
On Wednesday, August 15, 2018, the Department of Cannabis Regulation presented a general overview of the City's Social Equity Program, described the applicant eligibility requirements for Phase 2, and provided a preview of the Phase 2 application process at St Andrews Recreation Center.
Social Equity Program and Phase 2 Application Workshop #1 Meeting Materials
On Tuesday, July 24, 2018, the Department of Cannabis Regulation presented a general overview of the City's Social Equity Program, described the applicant eligibility requirements for Phase 2, and provided a preview of the Phase 2 application process at Los Angeles Mission College.
Click here for Part 1 of the Social Equity Program and Phase 2 Application Workshop PowerPoint Presentation
Click here for Part 2 of the Social Equity Program and Phase 2 Application Workshop PowerPoint Presentation
Click here for Video of the Social Equity Program and Phase 2 Application Workshop Presentation
Temporary Approval Documents Auto-Renewed for Proposition M Priority Processing Applicants with Local Authorization - Tuesday, July 3, 2018
Beginning on Tuesday, July 3, 2018, registered owners of Proposition M Priority Processing commercial cannabis businesses with local authorization may pick-up their updated Temporary Approval documents. The Department has renewed all valid Temporary Approval documents for an additional 180-days; the updated Temporary Approval documents now reflect an issuance date of July 1, 2018. Temporary Approval documents are available for pick-up at the Department's customer service counter during regular business hours. Temporary Approval documents will only be issued to an owner registered with the Department in the possession of their original form of identification used for registration.
Pick-up Location: 221 N. Figueroa St. Suite 1245, Los Angeles, CA 90012
Regular Business Hours: 09:00 A.M. to 4:00 P.M. Monday through Friday except City holidays
Phone Number: (213) 978-0738
WHERE TO BUY
Explore licensed cannabis businesses operating within the City of Los Angeles
LEGAL ACTIVITY
What does it mean now that cannabis is 'legal'?
Under California law, adults 21 or older can use, carry, and grow cannabis. Buying cannabis (without a valid physician’s recommendation or county-issued medical marijuana identification card) will become legal under California law for adults 21 or older on January 1, 2018. Use of medicinal cannabis is legal under California law if you have a valid physician’s recommendation or a valid county-issued medical marijuana identification card. To buy medicinal cannabis, you must be 18 or older and have either a valid physician’s recommendation, a valid-county issued medical marijuana identification card or be a Primary Caregiver as defined by the Health and Safety Code, with a valid physician’s recommendation for the patient.
Beginning January 1, 2018 businesses must have both a state license and local approval to engage in commercial cannabis activity.
Within the City of Los Angeles, local approval will come from the newly established Department of Cannabis Regulation (DCR).
DCR is responsible for licensing and regulating legal cannabis businesses.
ILLEGAL ACTIVITY
It is still a crime to do any of the following:
- Possess more cannabis than the legal limit
- Grow more cannabis than the legal limit
- Consume cannabis in public
- Consume cannabis while driving
- Drive with an open container of cannabis
- Drive while impaired
- Give or sell cannabis to minors
- Engage in commercial cannabis activity without a local temporary approval or license
Enforcement Against Illegal, Unlicensed Cannabis Businesses
It is unlawful for a person to establish, operate, or participate as an employee, contractor, agent of volunteer, in any unlicensed commercial cannabis activity within the City.
It is unlawful for a person to establish, operate or participate in a medical marijuana collective or cooperative unless in a dwelling unit with three or fewer qualified patients, persons with identification cards or primary caregivers, or any combination thereof.
It is unlawful to rent, lease to or otherwise allow any unlicensed commercial cannabis activity or an unlawful medical marijuana collective or cooperative to occupy any building or land.
Penalties for violating these laws include but are not limited to:
- A maximum civil penalty of $20,000 for each and every offense. Each day that a violation continues in deemed to be a new and separate offense.
- A criminal misdemeanor punishable by a fine of not more than $1,000 or by imprisonment of a period not more than six months.
The Los Angeles Police Department and City Attorney's office shall be responsible for criminal enforcement.
PHASES OF LICENSING
The Department of Cannabis Regulation, in conjunction with the Cannabis Regulation Commission, will license businesses engaging in commercial cannabis activity within the City of Los Angeles. In order to transition current operators to a regulated commercial market, DCR will begin to issue Temporary Approval to qualified applicants. Temporary Approval will give qualified applicants “Local Authorization” and furthermore will allow qualified applicants to continue to operate with limited-immunity until the applicant receives final approval for a License or final denial of a License and has exhausted all administrative appeals. Generally, DCR will begin processing applications to engage in commercial cannabis activity in 3 phases.Application Processing Phases
PHASE 1 - CLOSED
DCR began accepting applications for “Proposition M Priority Processing” as described in Section 104.07 of the Los Angeles Municipal Code on January 3, 2018. The application filing period closed after 60-days.
PHASE 2 - OPENED AUGUST 1, 2018
DCR is now accepting applications for “Non-Retailer Commercial Cannabis Activity Prior to January 1, 2016 Processing” as described in Section 104.08 of the Los Angeles Municipal Code on August 1, 2018. The application filing period will close at 4 p.m. on Thursday, September 13, 2018.
PHASE 3 - TO BE DETERMINED
DCR will accept and process applications for Commercial Cannabis Activity for the general public.
For more information about DCR’s application and licensing process please review Los Angeles’ Cannabis Ordinances.