Los Angeles will begin accepting Phase II applications August 1, 2018 (today).  Phase II is designed to open up the supply chain by permitting cannabis cultivation, distribution and manufacturing activities.  Testing labs have always been welcome in LA.

Phase II applicants must establish three major eligibility criteria:  (1) the Applicant was engaged prior to January 1, 2016, in the same type of Non-Retailer Commercial Cannabis Activity for which it now seeks a License; (2) the Applicant supplied an existing medical marijuana dispensary (pre-ICO) prior to January 1, 2017; and (3) the Applicant qualifies under the Social Equity Program.

Some of the requirements applicants can address later:  business tax registration, property diagram and radius map/sensitive use survey.  That is right!  Social Equity applicants, who otherwise qualify under the Phase II criteria do not need to have an established location to apply, although it will be required for final permitting.

More good news!  Los Angeles is offering a more streamlined, temporary licensing process for those who wish to continue with operations immediately.  Full, complete annual license applications are also being accepted.

Click here to see the City of Los Angeles’ Phase II Presentation and to download materials.

Click here to learn more about how to qualify under the Social Equity Program.

What About Retail?!?  Social Equity is the Only Way

In Los Angeles, if you want to start a dispensary, partnering with a qualified Social Equity applicant is mandatory.  Los Angeles City Council authorized approximately 400 cannabis retail licenses to be issued city-wide.  Phase 1 permitted existing medical marijuana dispensaries (pre-ICOs) to continue operations, subject to certain qualifications; 166 such licenses were issued by the Department of Cannabis Regulation.  If we do the math: 166 x 2 = 332;  166 + 332 = 498 and it is clear the cap will be met.  We understand that the City Council is likely to allow additional retail licenses to be issued to Social Equity Applicants to ensure the 2:1 ratio is met in each district.  We have a short list of Social Equity qualified applicants in our office and will be working with the MCBA and hopefully the DCR to locate and screen additional qualified applicants.

If you or any of your clients are looking to open a dispensary in Los Angeles, let us know so we can add you to our list and start making introductions.  If you know a qualified Social Equity Applicant, please send them our way if they are interested in being added to our potential match-making list.