For Phase 3 Round 2—the lottery—the amended ordinance revised the social equity applicant qualifications an individual with a prior California Cannabis Arrest or Conviction and who also meets one of the following two criteria: (1) Low-Income; or (2) ten years’ cumulative residency in a Disproportionately Impacted Area (DIA). These changes close some of the loopholes that were used in Phase 3 Round 1 where applicants were either in neighborhoods that were not disproportionately impacted or had substantial assets even though they reported an income that qualified. The upside is, if the process of preparing or overseeing the preparation of CEQA documents is simple, and if the DCR is generous with CEQA exemptions or Negative Declarations, then the City has potentially saved licensees thousands of dollars in the application process. Thus, it is imperative to work with a Social Equity Applicant that has been appropriately vetted and structure your entity (or entities) properly if you plan to apply as a Tier 1 or Tier 2 Social Equity Applicant during Phase III.
The amended ordinance requires that the applicant have a California Cannabis Arrest or Conviction for Phase 3 Round 2 and increased the cumulative residency in a DIA criterium to 10 years for all social equity applicants.
With the implementation of these amendments to the Municipal Code, the DCR has assumed the position of Lead Agency in matters related to CEQA. Tier 3: Tier 3’s have to enter into a Social Equity Agreement with the City to provide very specific capital, leased space, business, licensing and compliance assistance to a Tier 1 or Tier 2. Again, this is a lot to unpack. The prelude to Phase 3 licensing in the City of L.A. is finally upon us. While, on their face, these processing requirements do not seem too intense, all Phase III retail applicants should know that the 2:1 processing requirement encompasses all of the non-equity retail licenses that have been issued thus far. This creates a more intricate process for determining finding of public convenience or necessity. When it comes to Phase III non-retail applicants, one general application will be processed for every Social Equity application that is processed. If you are interested in applying for a commercial cannabis license in the City of Los Angeles, participating in Phase III of the City’s commercial cannabis licensing program is now your only option. In Round 1, an applicant had to find a compliant property before applying. A bud tender displays marijuana at a Los Angeles dispensary, Oct. 19, 2009. In Round 2, applicants who have been selected during the lottery will now have one year to find a property (although the DCR will approve locations in the order received, so applicants will still want to act quickly.). The licensee must provide: (i) a deed or executed lease with proof of a deposit; (ii) landowner acknowledgement of the right to occupy; (iii) a site plan; (iv) a premises diagram; and (v) copies of State licenses. The amended ordinance revised this section significantly. The City of Los Angeles is one of the few jurisdictions in the United States attempting to address the impacts of past cannabis policies and their inequities by developing and implementing cannabis policies that seek to center equity in cannabis policy reform. These 100 applicants include those who submitted a Type 10 application in Round 1 but were ineligible because of Undue Concentration or having another Type 10 applicant within 700 feet. This allows the DCR to set more concrete standards for addressing the following potential environmental impact areas: biological resources, cultural resources, geology and soils, hazards and hazardous materials, hydrology and water quality, noise, public services, and transportation.
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