This is a reminder that the Department of Cannabis Regulation (DCR) will administer the Phase 3 Retail Round 2 Lottery (Lottery) at 2:00 P.M. Pacific Time (PT) on Thursday, December 8, 2022. Notice is hereby given under Los Angeles Municipal Code (LAMC) section 104.06.1(c)(4). The lottery will be livestreamed on the DCR webpage here.
The registration period to participate in the Lottery closed at 4:00 PM Pacific Time (PT), on Wednesday, November 23, 2022. To view eligible lottery participants, please click here.
IMPORTANT INFORMATION: PENDING LAWSUIT
On November 30, 2022, a lawsuit was filed in federal district court challenging the City’s upcoming retail cannabis application lottery. The lawsuit is part of a nationwide trend of coordinated legal proceedings seeking to dismantle social equity programs like the City’s, and it may upend the City’s licensing processes and future lotteries. A hearing is scheduled for December 7, 2022, on a Temporary Restraining Order (TRO) seeking to halt the Lottery scheduled for December 8, 2022. The City filed an opposition to the TRO on December 2, 2022, and is working to dismiss the lawsuit.
DCR is committed to ensuring we have a regulated and safe cannabis market that promotes socially equitable outcomes for all stakeholders. DCR looks forward to pleading its case in the courtroom and will provide further updates in the future.
Lottery Background and Details
In preparation for the Phase 3 Retail Round 2 Lottery (Lottery), DCR contracted with a third-party global business advisory firm called FTI Consulting Inc. (FTI) to administer the lottery selection process. FTI, along with DCR and other City departments, have planned a triple-blind lottery selection process. TBD Social Equity Individual Applicants (SEIA) will be randomly selected during the lottery. FTI will ensure a fair, unbiased and blind selection process using professionals removed from any matters involving cannabis or cannabis entities during the duration of the P3RR2 Lottery. Lottery selections will be done by FTI, not DCR. The Los Angeles Office of the City Administrative Officer (CAO) contracted with a third-party audit firm, Sjoberg Evashenk Consulting (SEC), to audit the administration of the Lottery. The compilation of the lists that establishes the selected Lottery participants will be livestreamed on the Department’s website for the public to view on Thursday, December 8, 2022 at 2:00 P.M. Pacific Time. DCR will make 100 retail storefront Pre-Application Review record slots available in the December 8 P3RR2 Lottery. DCR will notify selected Lottery participants by email and publish the list to its website.
For a brief summary of how the Lottery will be conducted, click here. A more technical explanation of the Lottery is here.
Lottery Administration Resources
Please review the updated information related to the P3RR2 here. DCR encourages those that qualify to also visit and review the P3RR2 web page for additional information.