A few months ago, we wrote about the DCR telling us that the earliest date for Phase 2 applications would be July 1, 2018.  Well, they did not make that deadline either.  Now the City is saying that August 1, 2018 will be the commencement date for applications submissions for distributors, cultivators and manufacturers who were operating as of January 1, 2016 and sold to a pre-ICO as of that date.  Keep in mind, this will allow an operator to secure a TEMPORARY approval from the City of LA.

This does nothing to assist those looking to enter the market or those who do not qualify under the Social Equity Program, although the DCR conceded on Monday that it does not have all of the kinks worked out for its much anticipated, put a halt to the entire system, Social Equity Program.  Maybe, just maybe, non-social equity applicants and those looking to legally enter the market can look forward to filing their applications this fall.  Keep holding your breath for the time being.

Phase 2 Requirements:

  • Applicant was engaged prior to January 1, 2016, in the same Non-Retailer Commercial Cannabis Activity that it now seeks a License for;
  • Applicant provides evidence and attests under penalty of perjury that it was a supplier to an EMMD prior to January 1, 2017;
  • Business Premises meets all of the land use and sensitive use requirements;
  • Applicant passes a prelicense inspection;
  • There are no fire or life safety violations on the Business Premises;
  • Applicant paid all outstanding City business tax obligations;
  • Applicant indemnifies the City from any potential liability on a form approved by DCR;
  • Applicant provides a written agreement with a testing laboratory for testing of all Cannabis and Cannabis products and attests to testing all of its Cannabis and Cannabis products in accordance with state standards;
  • Applicant is not engaged in Retailer Commercial Cannabis Activity at the Business Premises;
  • Applicant attests that it will cease all operations if denied a State license or City License;
  • Applicant qualifies under the Social Equity Program; and
  • Applicant attests that it will comply with all operating requirements imposed by DCR and that DCR may immediately suspend or revoke the Temporary Approval if the Applicant fails to abide by any City operating requirement.
LA also changed the definition of  EMMD to:

“EMMD” means an existing medical marijuana dispensary that is in compliance with all restrictions of Proposition D, notwithstanding those restrictions are or would have been repealed, including, but not limited to, either possessing a 2017 L050 BTRC and current with all City-owed business taxes, or received a BTRC in 2007, registered with the City Clerk by November 13, 2007 (in accordance with the requirements under Interim Control Ordinance 179027), received a L050 BTRC in 2015 or 2016 and submits payment for all City-owed business taxes before the License application is deemed complete. For purposes of this subsection only, an EMMD that has entered into a payment plan with the City’s Office of Finance pursuant to LAMC Section 21.18 to pay all outstanding City-owed business taxes is deemed current on all City-owed business taxes and is deemed to have submitted payment for all City-owed business taxes.