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Posted on 02/01/2022
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DCR has transmitted a report to the City Council regarding an interim budget request and proposed amendments to the Los Angeles Municipal Code regarding the City’s commercial cannabis licensing and Social Equity Program. 

Beginning on June 30, 2022, California’s Department of Cannabis Control will no longer issue provisional licenses to non-social equity applicants. For social equity applicants, this deadline is extended to June 30, 2023. As a result of these deadlines, the City may experience public health, safety and economic impacts if it does not take proactive steps now to facilitate a transition to the State’s annual licensure process.

The City was recently awarded $22,312,360 in grant funds from the Department of Cannabis Control’s California Local Jurisdiction Assistance Grant in order to assist with this transition from provisional licensure to annual licensure. Funds will be spent as outlined in the grant application to cover direct and indirect personnel costs as well as environmental consultants. 

DCR’s recently transmitted report includes an interim budget request to the Los Angeles City Council seeking approval of 21 positions to support the licensing, social equity, and compliance programs; three positions within the City Attorney’s Office; and, two positions within the Office of Finance and authorization to implement the allocation of resources associated with the California Local Jurisdiction Assistance Grant. 

DCR’s recently transmitted report also includes proposed ordinance amendments, both intended to address pending state licensing deadlines and concerns raised by stakeholders and community members and also details proposed ordinance amendments related to the motion introduced by Coucil members Harris-Dawson and Price

The proposed amendments establish timelines for application processing, requiring timely notification to the State regarding the status of “Local Compliance Underway,” and simplifying and clarifying required application information. These proposed amendments would also establish a process for social equity applicants to participate in business entity eligibility verification before applying for temporary approval, create a new process for applicants to refile an application, and provide applicants with more time (up to a year) to submit a Temporary Approval Application. Finally, these recommendations would establish independent City definitions of “Owner” and “Primary Personnel” so that the City’s licensing framework is not impacted by changes to the State’s regulations or definitions.

The full report can be found here