Phase 3 Retail Round 1 Licensing


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Phase 3 Retail Round 1 Required Application Documents


LAMC 104.06.01 requires verified Social Equity Program Applicants to submit several forms and documents to be eligible for Phase 3 Retail Round 1 Application Processing. The following three documents are not forms and must be prepared by the Applicant. These documents may be combined into one file and are required to be uploaded to the application.

  • Executed lease agreement (with proof of a deposit), purchase agreement, or property deed for the Business Premises
  • Business Premises diagram
  • Any and all Equity Share information to demonstrate that a Tier 1 or Tier 2 Social Equity Applicant owns at least the minimum Equity Share required in the application

The following six documents are DCR forms which are required to be completed and uploaded to the application in Accela. In order to facilitate and streamline the Phase 3 Retail Round 1 application process, the forms have been combined into one document. Click on “Combined DCR Forms” to complete the fillable document. Applicants must save the completed document to their computer in order to be able to upload it to the application in Accela on September 3, 2019. The Combined DCR Forms document contains the following:

  • Ownership and Financial Interest Holder Disclosure Form
  • Financial Information Form
  • Proposed Staffing and Security Plan Form
  • Labor Peace Agreement Attestation
  • Indemnification Agreement
  • Radius Map Attestation (& instructions on how to create a radius map using ZIMAS)

Executed Lease, Property Deed or Purchase Agreement

An Applicant must submit an executed, binding lease, sublease, purchase agreement or property deed for its proposed business premises. Such agreements may contain an opt-out clause in the event an applicant is not eligible for Phase 3 Retail Round 1 application processing, or does not ultimately receive a Retail license. DCR will not accept non-binding documents, such as letters of intent to lease or purchase a property.

The lease, sublease, purchase agreement or property deed, must be in the legal name of the Applicant applying for the license.

An Applicant who has secured its business premises by a lease or sublease must also provide proof of deposit, which may be a nominal amount, by submitting a financial record that reflects the deposit, including but not limited to a copy of a check, money order, or financial institution document. 

Business Premises Diagram

A business premises diagram must be submitted that meets the following requirements:

  • The diagram shall be to scale;
  • The diagram shall show the boundaries of the property and the proposed retail premises to be licensed, showing all boundaries, dimensions, entrances and exits, interior partitions, walls, rooms, windows, and doorways;
  • If the proposed premises consists of only a portion of a property, the diagram must be labeled indicating which part of the property is the proposed premises;

The diagram does not need to provide any information not listed above, such as the placement of security cameras or specific descriptions of the types of activities that will take place in each area of the premises. For this part of the process, DCR is only concerned with areas of the premises that will be licensed for retail activity.

If the Applicant is eligible for further processing in Phase 3 Retail Round 1, they will later be required to submit a more detailed diagram that meets all of the requirements found in BCC Regulation Sec. 5006. At that time, Applicants will be permitted to amend the diagram as the build-out is completed. 

Documents to Prove Compliance with Equity Share Requirements 

  • Applicants must provide DCR all business records and agreements necessary to demonstrate that the verified Social Equity Program Applicant maintains at least the minimum Equity Share in the Applicant (Business Entity) applying for Phase 3 Retail Round 1 Application Processing. These records will vary based upon the structure of the business seeking a license, but must include all business formation documents that have been executed. 
  • Accordinging to LAMC 104.20 (b),"Equity Share" means a share of all of the following:
    1. a business's profits, including dividends, distributions or other payments;
    2. the proceeds of a sale of a business' assets, liquidation of a business, merger of a business into another business, or another transaction that would constitute the end of an original business; and
    3. the voting rights on fundamental decisions relating to the business.
  • Additionally, applicants must provide DCR all agreements or contracts any owners have entered into concerning the distribution of the business’ profits, revenues, or the right to control the business, including but not limited to, subscription agreements, management agreements, loan agreements, and profit-sharing agreements. If DCR determines any of these executed agreements violate the Equity Share requirements, the applicant will have an opportunity to revise them at DCR's direction to come into compliance with the Equity Share requirements.
  • For more information about Equity Share requirements, review the guidance on DCR’s website.
  • Please note that Tier 1 applicants have priority processing priority over Tier 2 applicants (LAMC Sec. 104.06.1 c)
    • The first 75 Tier 1 Applicants and the first 25 Tier 2 Applicants who meet the requirements of this subsection shall be eligible for further processing pursuant to Section 104.06. If less than 75 Tier 1 Applicants meet the requirements of this subsection, DCR may process additional Tier 2 applications, based upon the time and date of application submission, until DCR has identified 100 Tier 1 and Tier 2 Applicants who meet the requirements of this subsection.

Ownership and Financial Interest Holder Form 

A completed Ownership and Financial Interest Holder Disclosure Form (Form: DCR-LIC-001) must be submitted in the application. The form includes instructions on how to complete it. An Applicant may amend this form if its ownership structure or financial interest holders change during the application process (provided, of course, that all Social Equity Program ownership and equity share requirements are met). DCR suggests, but does not require, that an Applicant with a multi-level ownership structure attach a chart illustrating the ownership structure to this form. 

Financial Information Form

A complete Financial Information Form (Form: BCC-LIC-013) must also be submitted. This is the same form the California Bureau of Cannabis Control (BCC) requires for state license applications. 

Proposed Staffing and Security Plans

Applicants must complete a proposed staffing and security plan form provided by DCR. After Applicant has completed the build-out and made further progress in establishing operating procedures, a more detailed staffing and security plan must be submitted. 

Labor Peace Agreement Attestation Form 

Applicants must submit an executed Labor Peace Agreement Attestation Form

Indemnification Agreement 

Applicants must submit an executed indemnification agreement.

Radius Map

Applicants must provide a dated radius map including horizontal lines and labeling of any sensitive uses relative to a Retail License. This radius map can be either (i) a radius map prepared by a mapping or surveying company or (ii) a ZIMAS map prepared by the Applicant along with a radius map attestation.

For information on how to use ZIMAS to complete this requirement please find instructions here.