Eligibility Criteria for P3RR2 Lottery

The Social Equity Program (SEP) Commercial Cannabis Activity application processing for Type 10 (storefront retailer) pursuant to Los Angeles Municipal Code (LAMC) Section 104.06.1(c) is commonly referred to as Phase 3 Retail Round 2 (P3RR2). Applicants in P3RR2 will be selected by a random lottery process. 

In order to participate in the P3RR2 lottery, an individual must be verified as a Social Equity Individual Applicant under the criteria in LAMC 104.20(b)(1) This includes:

  • A qualifying California Cannabis Arrest or Conviction* prior to November 8, 2016; and,
  • At least one other eligibility criteria:.
    • 10 years of cumulative residency in a Disproportionately Impacted Area, as defined by police reporting districts; or,
    • Low Income in the 2020 or 2021 calendar year.

Please note that individuals who were previously verified as Social Equity Individual Applicants in 2019 and who wish to participate in the Phase 3 Retail Round 2 lottery for retail licenses must be verified again using the criteria above to participate in the lottery. 

*An arrest, prosecution or conviction for a violation of Proposition D is not a California Cannabis Arrest or Conviction.

P3RR2 Lottery Process

In preparation for the P3RR2 lottery process, DCR opened a verification window for individuals to request verification as a Social Equity Individual Applicant between May 26, 2022 and July 25, 2022.  When this window closed, DCR started a 90-day processing period in which it reviews all submitted verification requests to determine SEIA eligibility.  DCR expects to complete this review on or about October 23, 2022. Please refer to the Eligibility Verification -Individual page for up to date information related to the eligibility verification process.

After October 23, 2022, pursuant to LAMC Section 104.06.1(c), DCR will open a 30-day registration period for individuals verified as Social Equity Individual Applicants, as defined in Section 104.20(b)(1), to register to participate in the  P3RR2 lottery. 

Subsequent to the 30-day lottery registration, and after providing at least 15 days notice, DCR may administer a lottery to identify as many SEIAs as there are available Licenses in Community Plan Areas that have not reached Undue Concentration. The date for the P3RR2 lottery has not been announced yet.

Technical Assistance & Resources

Under LAMC section 104.06.1(c), DCR must make technical assistance available for a period of at least 45 days before opening the P3RR2 lottery registration period. DCR began providing technical assistance on August 31, 2022. Technical assistance is the Department of Cannabis Regulation’s (DCR) process of providing targeted support to a group of stakeholders. Common types of technical assistance include, but are not limited to, webinars, virtual training, email exchanges, or phone calls. DCR has sent emails to all individuals requesting SEIA verification in 2022 and posted information on its website regarding Technical Assistance webinars.

Technical Assistance Webinars

  • Webinar #1: August 31, 2022, 9:30 A.M.-11:00 A.M. PT: An overview of the P3RR2 lottery registration process and the relevant timing considerations for Social Equity Individual Applicants (SEIA) if they are selected in the P3RR2 lottery. The August 31, 2022, webinar recording and presentation slides can be accessed here.
  • Webinar #2: September 14, 2022, 6:30 P.M. to 8:00 P.M. PT: How to proactively prepare for the lottery and/or the application process if selected as a verified SEIA, including an overview of the BTRC application process and Legal Entity Record process. The September 14, 2022, webinar and presentation slides can be accessed here.
  • Webinar #3: September 28, 2022, 6:30 P.M. to 8:00 P.M. PT: Step-by-step instructions on how to register for the lottery.
  • Webinar #4: October 12, 2022, 6:30 P.M. to 8:00 P.M. PT: Overview of Webinars 1-3 and an open Q&A regarding the Phase 3 Retail Round 2 lottery registration process.

Technical Assistance on the Web

There is a wealth of valuable information on DCR's website for current and prospective Social Equity Individual Applicants (SEIAs), including information on application and licensing processes. There is also valuable information available for verified SEIAs on DCR's Learning Management System (LMS).

There is also additional information available on DCR’s website. Below are some of the more frequently visited pages on the DCR website:

DCR also encourages all SEIAs, including those interested in the P3RR2 lottery process, to proactively seek out information on Application Procedures and Resources page in advance of the lottery or before submitting other license applications. If an individual is not selected for the lottery, verified SEIAs may still submit applications for several other license types. You can find that information here.