IMPORTANT UPDATE REGARDING PHASE 2 APPLICATIONS

DCR UPDATE Important Info 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.