On July 2, 2020, the Department of Cannabis Regulation sent the following communication to certain Phase 2 Applicants:
Phase 2 Applicants who Fail to Pass a Pre-Licensing Inspection by July 3, 2020 Will Not Have Their Application’s Immediately Abandoned.
In 2018, pursuant to Los Angeles Municipal Code (“LAMC”) Section 104.08(a), Phase 2 Applicants received a non-operational Local Authorization to apply for a temporary license from the Bureau of Cannabis Control, the California Department of Food and Agriculture or the California Department of Public Health.
LAMC Section 104.08(a)(4) requires an Applicant to pass a pre-licensing inspection before Temporary Approval can be issued by the Department of Cannabis Regulation (DCR). Furthermore, LAMC Section 104.08(f) authorizes DCR to abandon an application if an Applicant does not pass a pre-licensing inspection by a date certain. Notwithstanding, LAMC section 104.08(f) also authorizes DCR to grant extensions of time to an Applicant to pass a pre-licensing inspection due to extenuating circumstances.
On December 11, 2019, DCR granted an extension of time until March 31, 2020, to Phase 2 Applicants without Temporary Approval to pass a pre-licensing inspection. On February 26, 2020, DCR granted an additional extension of time to pass a pre-licensing inspection until July 3, 2020. On May 28, 2020, DCR emailed a reminder stating that any Applicant who did not request a pre-licensing inspection by June 3, 2020, would have their application deemed abandoned by DCR.
Now, please be advised that a Phase 2 Applicant who fails to pass a pre-licensing inspection by July 3, 2020 will:
Lose their local authorization provided under LAMC Section 104.08(a) as of July 4, 2020, and by virtue of losing this local authorization, shall lose the availability of limited immunity by operation of law under LAMC Section 104.08(c); and
Have their Application abandoned as of July 20, 2020, unless, by no later than July 19, 2020, the Applicant either: (a) registers a notice of intent to relocate; or (b) submits a request to schedule an initial or follow-up pre-licensing inspection.
Note: The notice of intent to relocate is not a formal Business Premises relocation request. When registering a notice of intent to relocate, please do not provide the proposed Business Premises location. Instead, DCR will contact the Applicant when the application modification form and Business Premises relocation process becomes available in accordance with recently adopted ordinance amendments and when related updated fees become effective. Please note that this registry is for Phase 2 Applicants without Temporary Approval ONLY.
For requests to schedule a pre-licensing inspection after July 3, 2020, applicants must send an email to email@example.com with the following subject line, “Request for Pre-Licensing Inspection - Application No. LA-C-18-XXXXXX-APP.” Please note that additional inspection fees will be charged if the request is for a second pre-licensing inspection.
Finally, all Applicants are advised that no Applicants are authorized to operate unless and until a Temporary Approval or a License is issued by DCR.