Hello!
Recently, the City of Los Angeles and DCR hosted a delegation from South Africa on a fact-finding mission exploring Los Angeles’ cannabis license, compliance and social equity programs, their development, challenges and successes. This visit and DCR’s recent 6th birthday prompted a look back on the Department’s beginnings and accomplishments to date. Today, DCR is the largest cannabis regulation program in the country, measured by both the sheer number of licenses and the size and scope of its Social Equity Program (SEP).
DCR continues to work diligently to refine, streamline, and improve processes. To illustrate this continued work, here are some projects DCR has focused on lately:
- Planned and is currently executing a Public Convenience or Necessity request process for Social Equity Applicants. This work has included updating the DCR Licensing Portal to handle these incoming requests and hosting an instructional webinar and Q&A session for those interested in participating. More about this PCN process is in this bulletin.
- In August, DCR updated its online map of licensed retail and pending locations to help applicants better navigate the licensing process.
- DCR hosted its monthly Q&A Virtual Lunch open to all those interested in learning about the cannabis licensing process, compliance or other cannabis-related topics affecting the City. To access this event and all past events, click here.
- Through the Social Equity Program, DCR created an Equity Stakeholder Advisory Workgroup consisting of Social Equity operators familiar with DCR’s programs and resources. The group is designed to constructively discuss and formulate ideas for the Social Equity Program so that it continues to better serve the cannabis equity community. The workgroup first met on July 27 and will meet again on October 26.
DCR remains committed to a transparent and open licensing process that is effective, efficient and equitable for Angelenos and the community at large.
This edition is dedicated to Latino Heritage Month, which begins September 15. Los Angeles is home to the largest Latino communities outside of their respective countries. To the immense, vital and vibrant Latino community - te honramos.
Best wishes,
Interim Executive Director
Michelle Garakian
Social Equity Business Spotlight - Pauwels Cannabis Cosmetics Company
David Pauwels holds the key ingredients to his company’s liniment cream.
Even household items are tools of the trade at Pauwels’ manufacturing facility.
The Pauwels Cannabis Cosmetic Company team, from left to right: Eddie Cho (Assistant Plant Manager), Andres Urena (Sr. VP Business Development ), Mark Herbert (Head of Sales), Tiffany Andersen (COO & Co-Founder), David Pauwels (CEO & Founder) Josh Nutter (Plant Manager).
For David Pauwels, owner of Pauwels Cannabis Cosmetics Company, cannabis didn’t seem like a big deal when he was growing up. His father smoked cannabis often. With Mexican heritage on his mom’s side, he said many Mexican families had a bottle of cannabis-infused rubbing alcohol at the ready. Though he didn’t consume cannabis until he was an adult, his first personal experience was positive and at odds with negative societal views and the prevailing stigma that only stoners consumed.
He said to himself, “This isn’t bad. Why do they say it’s bad?”
It led Pauwley on a life-long quest to find out more about this plant, including moving to Northern California to learn cannabis farming at the age of 19. He then helped a friend run his pre-Proposition 64 medical cannabis shop and now, in his late 40’s, owns a Los Angeles-based cannabis manufacturing and delivery business as a social equity licensee.
Pauwels said he likes to think outside the box, push back on conventional thinking, and is passionate about sharing information about the vegan-friendly Pauwels Cannabis Cosmetics brand that includes a liniment cream he helped create with his team.
David Pauwels is joined by DCR’s Social Equity Program team for a tour of the Sun Valley facility.
Though he was always passionate about the positive properties of the cannabis plant, his path into the cannabis industry was reaffirmed when Pauwels used his liniment cream on his father who was battling cancer. His father was often agitated when he wasn’t feeling well and wouldn’t eat. But the cannabis cream seemed to make a difference in his father’s mood and it allowed him to regain his appetite. Friends who have used the product also gave Pauwels positive feedback about how it improved the physical ailments they were experiencing.
The anecdotes he heard were surprising even to him.
“No, it can’t be all true,” he said. “But you know we found out a lot (about making the cream) by accident, and it just must be working.”
The company philosophy and product attributes are proudly noted on the whiteboard at Pauwels Cannabis Cosmetics.
On a recent DCR visit to Pauwels Cannabis Cosmetics, the Pauwels team assembled in their Sun Valley facility and provided the DCR team with a business presentation of their liniment cream and their business philosophy. It felt a little like an episode of Shark Tank where the excitement of, and personal investment in, the product - and cannabis in general - was palpable.
“I just love this plant,” said Josh Nutt, plant manager for the company.
Indeed, the entire team does. For Pauwels’ part, he’s excited to devote more time to the cannabis space and recently joined DCR’s Equity Stakeholder Advisory Workgroup. The workgroup will help inform future program offerings and resources for current and prospective licensees of the Department’s Social Equity Program.
“I really think there is a lot we can do to help the program and future businesses,” Pauwels said.
As a veteran of the cannabis space, he has learned many things about cannabis and about running a business. Pauwels realizes that surviving in the cannabis industry takes a lot of patience as the road to success is very long and tenuous.
Taking a tour of the lab where the cosmetics liniment cream is manufactured, Pauwels’ teammate Nutter and his wife, COO and co-founder Tiffany Andersen explain the process of taking the cannabis flower and pressing it. That extract is used to make the resin. That resin is later oxygenated and mixed with creams to make the final product. It seems simple for them to explain now, but the final product composition and process came from years of trial and error, much like what you would see from a scientist.
Pauwels Cannabis Cosmetics’ COO and co-founder Tiffany Andersen explains the process of making the company liniment cream.
About a decade ago, Pauwels also started working on ways to utilize cannabis plant waste into useful products and discovered a good way of making paper. That project - to manufacture cannabis-derived paper products - is finally seeing some traction and may launch in the next year or two.
“We know that we have to do things incrementally,” Pauwels said, referring to the long and arduous process of research and development for his present and future products.
Pauwels’ teammate adds, “If you are looking to get into the cannabis business to make a quick buck, don’t,” said Nutter with a laugh. “There are plenty of ways to make money. I hear chicken sandwiches are very popular.”
As for the future of the company, Pauwels is working on a retail storefront license application to build on his cannabis business footprint. He said he is anxious for federal laws to declassify cannabis as a Schedule I substance.
Pauwels said federal legalization of cannabis is important for his business success because it would pave the way for easier banking opportunities, allow for the business to have tax write offs for expenses, and also open the door to export his products to other states. At the moment, current laws allow the cosmetics cream to be sold only in California retail cannabis stores.
Finally, Pauwels is excited that his cosmetics brand will be the first cannabis-based product to showcase at a local cosmetics trade show later this year.
Referring to the stigma of cannabis, Pauwels said, “Things are definitely changing, I can feel it.” .
For more information on the company, visit Pauwels Cannabis Cosmetics.
Public Convenience or Necessity Period Ends
On August 15, 2023, DCR opened the Public Convenience or Necessity (PCN) process for Social Equity applicants. The process is for those seeking a license for a cannabis retail storefront in a Community Plan Area (CPA) that is unduly concentrated. The process closed on August 29, 2023.
DCR can issue a specific number of retail storefront licenses in a particular CPA before Undue Concentration is reached. At this point, the City Council must then authorize DCR to process additional retail storefront applications in that CPA. Each applicant must make its case to the City Council, which then may make a PCN finding to allow the application to move forward with DCR.
An Intro to PCN Process webinar with a live question and answer section was held on August 15, 2023, for all Social Equity applicants interested. The webinar took potential applicants through the step-by-step process with expected timelines and necessary documentation.
Fourteen Pre-Application records were submitted in Community Plan Areas subject to a finding of Undue Concentration between August 15 and August 29, 2023.
South African Delegation Visits DCR
A delegation from South Africa visits DCR offices to ask questions about the City of Los Angeles cannabis licensing process.
Interim Executive Director Michelle Garakian (right) tours a Los Angeles-based manufacturing facility with members of the South African delegation.
As more and more states and cities in the U.S. seek to legalize adult recreational use of cannabis, the world is also following suit. On August 18, 2023, a delegation of South African officials visited the City of Angeles on a fact-finding mission to learn more about the cannabis regulation program in the City. Seven members of the South African government joined DCR on a tour of a local retail and cultivation facility. The delegation also listened to a detailed presentation by DCR’s Interim Executive Director Michelle Garakian who provided background on DCR’s licensing, social equity and compliance program and guidance on certain successes and possible pitfalls.
At the moment, South African elected officials are considering a bill that would legalize commercial cannabis
Social Equity Program Launches Workgroup
As part of its efforts to provide the best and most robust array of resources and programming, DCR’s Social Equity Program launched the Equity Stakeholder Advisory Workgroup. Designed to constructively discuss and contribute ideas to the Social Equity Program, it consists of a diverse group of Social Equity entrepreneurs from the licensed cannabis industry, including retail business owners, delivery service owners, emerging entrepreneurs, medical cannabis business owners, manufacturers and growers.
The Workgroup members met minimum requirements to participate. The requirements were:
- Completed 5 hours of training in the Learning Management System
- Received at least one grant
- Attended 3 webinars
Twenty-three members were selected to participate. Meetings will be held quarterly. Stay tuned for future updates on the workgroup and its achievements.
Temporary Approval & Record Renewal
It’s renewal time. The Temporary Approval and record renewal cycle began on Saturday, September 2, 2023, and closes on Wednesday, November 1, 2023. Licensees should have received emails with instructions.
DCR will host a License Renewal Webinar at 12:00 pm on Wednesday, September 20, 2023.
Please reach out to DCR at (213) 978-0738 or email DCRLicensing@lacity.org with any questions.
Join DCR for the monthly webinar Q&A Virtual Lunch with Assistant Executive Director Jason Killeen at 12:00 PM, September 13, 2023. You can RSVP and pre-submit questions here, and join the webinar here. To view recordings of past webinars, you visit our Events Calendar.
Participants Needed for The Study: Black Experience in Los Angeles
African Americans that live or have lived in the City of Los Angeles are invited to participate in this far-reaching study looking to document the black experience in Los Angeles.
Interested parties can participate via survey, in a focus group, or through an interview.
The research is being conducted by California State University, Northridge with funding from the City of Los Angeles Civil + Human Rights and Equity Department. For more information, fill out the Black Experience LA interest form, or visit the webpage.
Central Avenue Jazz Festival Returns from Hiatus!
The 28th Annual Central Avenue Jazz Festival returns after a four-year break on Saturday, September 23, 2023, from 11 a.m. to 7 p.m. Honoring the historic rich cultural legacy of Central Avenue—once considered the epicenter of West Coast jazz–the festival takes place on Central Avenue between Martin Luther King Blvd and Vernon Avenue and features live entertainment from legends and rising stars across three stages.
For more information, visit centralavejazzfest.com or email info@centralavejazzfest.com or call Councilmember Curren Price's Constituent Service Center at (323) 846-2651.