Los Angeles Municipal Code Art. 4 Cannabis Procedures

(Added by Ord. No. 185,343, Eff. 12/19/17.)

[Editor's note: Former Article 4, "Airport Hospitality Enhancement Zone Ordinance", was repealed by Ord. No. 183,241, Eff. 11/10/14.]

Section 104.00 Purpose. 104.01 Definitions. 104.02 License Required. 104.03 Application Procedure. 104.04 Denial of a License, Suspension of a License, or Disqualification. 104.05 Temporary Approval. 104.06 Annual Licenses. 104.06.1 Retailer Commercial Cannabis Activity Application Processing.

104.07 Proposition M Priority Processing. 104.08 Non-retailer Commercial Cannabis Activity Prior to January 1, 2016, Processing. 104.09 Testing Lab Licenses. 104.10 License Appeal Procedure. 104.11 Mandatory Requirements. 104.12 Renewal and Cancellation. 104.13 Administrative Violations and Penalties. 104.14 Administrative Hearing Procedure. 104.15 Enforcement and Penalties for Unlawful Cannabis Related Activity. 104.15.1 Padlocking, Barricading, and Fencing Property Where Unlicensed Commercial Cannabis Activity Occurs. 104.16 Administration. 104.17 Severability. 104.18 No Vested or Nonconforming Rights. 104.19 Fees and Fines. 104.20 Social Equity Program. 104.21 Management Companies. 104.22 Cannabis Corporate Responsibility Report. 104.23 Storefront Retailer Emblem Program.

(Amended by Ord. No. 187,095, Eff. 7/1/21.)

In November 2016, the people of the State of California voted to approve Proposition 64, the Adult Use of Marijuana Act (AUMA), which decriminalized certain activities related to non-medical cannabis in California. Subsequently, the State enacted the Medicinal and Adult-Use Cannabis Regulation and Safety Act to establish a system to control and regulate the cultivation, distribution, transport, storage, manufacturing, processing and sale of both medicinal and recreational cannabis. The AUMA also provided for State licensing of commercial cannabis businesses, starting January 1, 2018. State law requires city approval in order to obtain a State License. The City desires to create a licensing system for certain cannabis- related businesses. Therefore, the City has created a Department of Cannabis Regulation and a Cannabis Regulation Commission to implement this article and otherwise coordinate administration of the requirements of this article.

(Amended by Ord. No. 187,879, Eff. 6/2/23.)

(a) The following definitions shall apply to this article. Words and phrases not defined herein shall be construed as defined elsewhere in this Code, as required by the context:

1. “Annual License” means a City License issued pursuant to Section 104.06.

2. “Applicant” means a Person applying for a City License pursuant to this article.

3. “Application” means all records, including Pre-Application Records, submitted to DCR by an Applicant or Licensee necessary to request Temporary Approval, an Annual License, an Operating Permit, or to

renew a record associated with conduct Commercial Cannabis Activity.

4. “BTRC” means a Business Tax Registration Certificate issued by the City’s Office of Finance.

5. “Business Day” means Monday through Friday from 9:00 a.m. to 4:00 p.m. Pacific Time, excluding City holidays, furlough days, and/or mandated closures.

6. “Business Premises” means the designated structure or structures and land specified in an Application for a License that is owned, leased, or otherwise held under the control of the Applicant or Licensee

where the licensed Commercial Cannabis Activity will be or is conducted.

7. “Cannabis” means cannabis as defined in Section 21.51 of the Los Angeles Municipal Code. (Amended by Ord. No. 188,451, Eff. 12/30/24.)

8. “City” means the City of Los Angeles.

9. “City Council” means the Council of the City of Los Angeles.

10. “Commercial Cannabis Activity” includes the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery or sale of Cannabis or Cannabis products in the City as provided for in Division 10 of the California Business and Professions Code and the California Code of Regulations, as currently defined or as may be amended.

11. “Commission” means the City of Los Angeles Cannabis Regulation Commission, as described in Chapter 31 of Division 22 of the Los Angeles Administrative Code.

12. “Community Plan Area” shall have the same meaning as within Article 1.5, Chapter 1 of the Los Angeles Municipal Code.

13. “Cultivated Area” means the designated area(s) at a Business Premises that will contain mature plants at any point in time.

14. “Cultivation” means cultivation as defined in Section 26001 of the California Business and Professions Code, as currently defined or as may be amended.

15. “DCR” or “Department” means the City of Los Angeles Department of Cannabis Regulation, as described in Chapter 31 of Division 22 of the Los Angeles Administrative Code.

16. “Disproportionately Impacted Area” is defined in Section 104.20 and incorporated herein by reference.

17. “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.

    18. “Equity Share” is defined in Section 104.20 and incorporated herein by reference.

    19. “Final Inspection” is a required inspection of the Business Premises conducted by DCR after the issuance of an Annual License and prior to the issuance of an Operating Permit.

    20. “Indirect Owner” means a Person with an ownership interest in an entity that has a direct or indirect ownership interest of at least a 20% aggregate ownership stake or equity interest in an Owner of the

    Applicant or Licensee, unless the interest is solely a security, lien, profit sharing, or encumbrance. Aggregate means the total ownership interest held individually or through an entity. The amount of indirect ownership in the Applicant or Licensee that is held by any other entity is determined by multiplying the percentage of ownership interest at each level. For example, an individual owning 50% of an entity that owns 50% of a cannabis business would have a 25% aggregate ownership interest in the cannabis business.

    21. “Individual” means a natural person. The terms “individual” and “natural person” are used interchangeably throughout this article.

    22. “Initial Inspection” is a required inspection of the Business Premises conducted by DCR prior to the issuance of Temporary Approval.

    23. “License” means a Temporary Approval or Annual License issued under this article.

    24. “Licensee” means any Person holding a License under this article.

    25. “Low Income” is defined in Section 104.20 and incorporated herein by reference.

    26. “Management Company” means a Person who manages Commercial Cannabis Activity on a Licensee’s behalf, or a Person who directs or controls another Person who manages Commercial Cannabis

    Activity on a Licensee’s behalf. A Management Company does not include an employee of a Licensee or an Owner of a Licensee.

    27. “Neighborhood Liaison” means a natural person specifically designated by the Licensee to interact with the community, including, but not limited to, responding to complaints.

18. “Operating Permit” means authorization to conduct Commercial Cannabis Activity issued by DCR to an Annual Licensee at a location approved by DCR.

    29. “Owner” means a Person with at least a 20% ownership stake or equity interest in the Applicant or Licensee, unless the interest is solely a security, lien, profit sharing, encumbrance or held through another

    Person.

19. “Person” includes any individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit, and the plural as well as the singular.

    31. “Primary Personnel” means any of the following: (i) a natural person with at least a 20% aggregate ownership stake or equity interest in the in the Person applying for a License or a Licensee, unless the

    interest is solely a security, lien, profit sharing, or encumbrance; (ii) a natural person who manages, directs, or controls the operations of the commercial cannabis business, including but not limited to: a chief executive officer, president, vice president, officer, general manager, a member of the board of directors, a general partner, a managing member or a non- member manager, and/or a trustee(s) or persons who have control of the trust; (ii) if the Applicant or Licensee is owned in whole or in part by an entity and the entity includes natural persons who manage, direct, or control the operations of the Applicant or Licensee, those natural persons shall also be disclosed as Primary Personnel; and (iii) DCR may determine, in its sole discretion on a case-by-case basis, that additional natural persons have the ability to manage, direct, or control the commercial cannabis business and meet the criteria of Primary Personnel.

    32. “Proposition D” means the initiative adopted by the voters of the City of Los Angeles on May 21, 2013.

    33. “Proposition M Priority Processing Application” or “Proposition M Priority Processing” means an application filed by an EMMD pursuant to the priority processing for EMMD dispensaries as provided

    by Measure M, adopted by the voters of the City of Los Angeles on March 7, 2017.

    34. “Retail Commercial Cannabis Activity” means Commercial Cannabis Activity involving the sales or distribution of Cannabis directly to a consumer.

    35. “Rules and Regulations” mean detailed requirements meant to clarify and aid in the administration of this article, which are approved by the City Council or promulgated by DCR.

    36. “Social Equity Applicant” means the Person applying for a City License subject to Section 104.20.

    37. “Social Equity Individual Applicant” is a natural person who meets the individual eligibility criteria defined in Section 104.20.

    38. “State License” means a license issued by the State of California, including a State-issued provisional or annual license.

    39. “Temporary Approval” means a City License issued pursuant to Section 104.05.

20. “Undue Concentration” means the Applicant’s Business Premises is located within a higher License to population ratio within the community plan based on the American Community Survey, updated annually, than the following: ratio of one License per 7,500 residents for Storefront Retailer (Type 10); ratio of one License for every 2,500 square feet of allowable cultivated area for Cultivation (Types 1A, 1C, 2A, 3A, and 5A); and ratio of one License per 7,500 residents for Manufacture (Type 7). For the purposes of calculating Undue Concentration, “License” includes Pre-Application Records and Annual License Applications. Applications submitted prior to a community plan reaching Undue Concentration are not subject to a finding of Undue Concentration. (Amended by Ord. No. 188,451, Eff. 12/30/24.)

    41. “Unlawful Establishment” means any Person engaged in Commercial Cannabis Activity if the Person does not have a City-issued Temporary Approval or Operating Permit.

(Amended by Ord. No. 188,451, Eff. 12/30/24.)

(a) DCR shall issue Licenses authorizing adult-use and medical Commercial Cannabis Activity. A License is required for any of the following Commercial Cannabis Activities and shall be issued individually for each activity type:

1. RETAILER COMMERCIAL CANNABIS ACTIVITY - Type 10 - Storefront Retailer; Type 9 - Delivery, as currently defined or amended by the State of California. A Person may not hold more than three

Type 10 Licenses. A Person with an aggregate ownership or profit-sharing interest of 20 percent or more in the Person applying for a License may not hold more than three Type 10 Licenses, unless the interest is solely a security, lien, or encumbrance.

2. MICROBUSINESS COMMERCIAL CANNABIS ACTIVITY - Type 12 - Microbusiness is a business that conducts Delivery (Type 9) and Distributor (Type 11) Commercial Cannabis Activity.

3. INDOOR COMMERCIAL CANNABIS CULTIVATION ACTIVITY - Type 1 through Type 5 as defined herein; Type 1A - Cultivation, Specialty Indoor, Small; Type 2A - Cultivation, Indoor Small; Type

3A - Cultivation; Indoor, Medium; Type 4 - Cultivation, Nursery (limited to indoor cultivation); and Type 5A - Cultivation, Indoor, Large; Type 1C - Specialty Cottage Small (limited to indoor cultivation); Processor as currently defined or amended by the State of California. A Person shall not hold more than three Type 3A Medium - Indoor Cultivation Licenses or any combination of cultivation license types where the aggregate allowable cultivation area would exceed 1.5 acres. A Person with an aggregate ownership or profit sharing interest of 20 percent or more in the Person applying for a License may not hold more than three Type 3A Medium - Indoor Cultivation Licenses or any combination of cultivation license types where the aggregate allowable cultivation area would exceed 1.5 acres. This provision does not apply to applications submitted prior to the effective date of this ordinance provided that any changes or modifications to the license do not exceed the total allowable aggregate cultivation area or the number of allowable cultivation licenses held by a Person.

4. MANUFACTURE COMMERCIAL CANNABIS ACTIVITY -

   (i) Type 6 - Manufacturer 1 as currently defined or amended by the State of California.

   (ii) Type 7 - Manufacturer 2 as currently defined or amended by the State of California.

   (iii) Type N - Infusion.

   (iv) Type P - Packaging.

   (v) Type S - Shared-use facility.

5. TESTING COMMERCIAL CANNABIS ACTIVITY - Type 8 - Testing Laboratory as currently defined or amended by the State of California.

6. DISTRIBUTOR COMMERCIAL CANNABIS ACTIVITY - Type 11 - Distributor as currently defined or amended by the State of California.

7. OTHER COMMERCIAL CANNABIS ACTIVITY - Any Commercial Cannabis Activity which requires a State of California license as currently defined or amended by the State of California and which is not identified in this article.

(Amended by Ord. No. 187,879, Eff. 6/2/23.)

(a) Application – Pre-Application Record. Prior to filing a Temporary Approval or Annual License Application, an Applicant shall submit a Pre-Application Record through the DCR Licensing Portal, including all information, forms and documents required by the Rules and Regulations, and pay a Pre-Application Review Fee pursuant to Section 104.19, for DCR to determine if the proposed Business Premises location complies with Section 104.04(b). Pre-Application Records that are incomplete shall not be eligible for further processing. If the Pre-Application Record is eligible for further processing, the Applicant shall submit a Temporary Approval Application or Annual License Application through the DCR Licensing Portal, including all required information, forms, and documents, within one (1) calendar year of the date DCR notifies the Applicant by electronic mail that the Pre-Application Record is eligible for further processing. A Pre-Application Record shall be abandoned pursuant to Section 104.03(f) if a complete Temporary Approval Application or Annual License Application is not timely submitted within one (1) calendar year. DCR may request additional information, forms, or documents from the Applicant at any time during its review of the Pre-Application Record, subject to payment of any additional fees under Section 104.19. If the Applicant fails to provide the additional information, forms or documents in the time allotted by DCR, the Application shall be abandoned. An Applicant whose Business Premises location is ineligible shall not be permitted to amend the Pre- Application Record, but may submit a new Pre-Application Record subject to the payment of applicable fee(s) in Section 104.19.

1. Public Convenience or Necessity (PCN) Process. Pursuant to this subsection, DCR shall process Storefront Retail (Type 10) Applications from all Applicants, including Applicants not subject to Section

104.20, with a Business Premises located in a Community Plan Area that has reached Undue Concentration. If the Applicant’s proposed Business Premises is located in a Community Plan Area that has reached Undue Concentration, the Applicant must request that the City Council find that approval of the License Application would serve the public convenience or necessity. Prior to seeking a finding from the City Council, the Applicant shall submit a Pre-Application Record and pay a Pre-Application Review Fee pursuant to Section 104.19 for DCR to determine if the proposed Business Premises location complies with Section 104.04(b). (Amended by Ord. No. 188,451, Eff. 12/30/24.)

(i) If DCR determines that the Pre- Application Record is not eligible for further processing, the Applicant shall not file a request that the City Council find that approval of the License application would

serve the public convenience or necessity and DCR shall not further process the Application. The Applicant may submit a new Pre-Application Record for a new proposed location, subject to the payment of fees under Section 104.19.

(ii) If DCR determines the Pre-Application Record is eligible for further processing, the Applicant shall file a request, on a form provided by DCR, that the City Council find that approval of the License

Application would serve the public convenience or necessity, supported by evidence in the record. The Applicant also shall pay a Public Convenience or Necessity Application Fee pursuant to Section 104.19 within 30 days from the date of invoice issuance. DCR shall transmit the request to the City Clerk within 30 days of the Applicant’s payment of the Public Convenience or Necessity Application Fee. Within 10 days of DCR transmitting an Applicant’s request to the City Clerk, DCR shall provide notice by electronic mail to: (1) the Applicant; (2) the closest Neighborhood Council; (3) the relevant business improvement district, if one exists; and (4) and the City Council Office within which the Business Premises is situated. The notice shall contain the following information: purpose of the notice, name of the Applicant, Application number, Business Premises address, Commercial Cannabis Activities requested, and the Council District and Community Plan Area in which the Business Premises is located. The notice shall also inform interested parties about how to provide DCR with information concerning the Application. DCR shall also post the notice to its website.

(iii) The Applicant shall engage with and seek written input from key stakeholders in the area in which the proposed Business Premises will be located, which at a minimum should include: the relevant area Neighborhood Council; Los Angeles Police Department (LAPD) Division; local chamber of commerce; and at least one substance abuse intervention, prevention and treatment organization within the Community Plan Area. LAPD shall provide the City Council with crime data for the area, and a letter stating LAPD’s position on the application request. DCR shall promulgate standards subject to City Council approval by resolution, which may be amended from time to time.

(iv) If the City Council does not act on the Applicant’s request within 90 days of the City Clerk’s date of receipt, the City Council shall be deemed to have not made the necessary findings to support the

public convenience and necessity, the request shall be denied by operation of law, and the Application shall not be processed by DCR. If the City Council finds that approval of the License Application would serve the public convenience or necessity, the Applicant shall pay a Temporary Approval Application Fee pursuant to Section 104.19 within 30 days of the City Council’s action becoming final.

(b) Application Withdrawal. An Applicant may withdraw an Application prior to the City’s approval or denial of the License by submitting the Application Withdrawal Form through the DCR Licensing Portal. An Application shall not be considered withdrawn until DCR has consented to its withdrawal in writing. If eligible, an Applicant may re-apply if an Application is withdrawn or abandoned, but the Applicant must file a new Application. DCR shall not refund any fee for a withdrawn or abandoned Application. Withdrawal shall not, unless consented by DCR, deprive DCR of its authority to institute or continue a proceeding against the Applicant for the denial of the License upon any ground provided by law or to enter an order denying the License upon any such ground.

(c) Modifications. To request a modification, the Applicant or Licensee shall be in good standing with the requirements of this article and shall not be delinquent on any City tax, fine, fee, or previously-deferred fee payments. Modifications shall not be made to any record, including an Application, License, or Operating Permit, without prior written approval by DCR in accordance with this subsection. For all modifications, an Applicant or Licensee shall submit a modification request on a form provided by DCR through the DCR Licensing Portal and pay the applicable modification request fee pursuant to Section 104.19 within 30 days of the invoice date. After payment, DCR, in its sole discretion, may approve or deny the request. DCR’s determination is final and not appealable. If requested, the Applicant or Licensee shall submit any additional information, forms or documents that DCR deems necessary to process the request and pay any additional modification fee(s) pursuant to Section 104.19. Modification requests shall not be processed until all required information, forms, documents, and fees have been submitted. DCR may require Licensees to obtain approval for the proposed modification(s) from the State licensing agency or any other applicable agency. (Amended by Ord. No. 188,451, Eff. 12/30/24.)

1. Modification Documents. DCR shall require the modification information, documents, and/or forms that are described in the Rules and Regulations for each type of modification request.

2. Business Tax Registration Certificate (BTRC). A BTRC does not constitute a permit, license or authorization to conduct Commercial Cannabis Activity. A BTRC signifies that the Person named on the
face of the BTRC has fulfilled the requirements of Article 1 of Chapter II of the Los Angeles Municipal Code by registering with the Director of Finance for the purpose of paying business tax for the classification
of business for which the BTRC is issued. A BTRC does not authorize a Person to operate an Unlawful Establishment, to conduct any unlawful business, to conduct any lawful business in an illegal manner, or to
conduct within the City the business for which this certificate has been issued without strictly complying with all the provisions of this article.

3. Legal Business Entity Record.

(i) Ownership Structure, Owner, and Primary Personnel Changes. Licensees shall not perform changes to a Person’s ownership structure, Owners, Indirect Owners, and/or Primary Personnel
without written approval from DCR. Persons formed as corporations, limited partnerships, or limited liability companies shall update their filings with the California Secretary of State prior to submission of
the modification request. The Applicant or Licensee shall pay the applicable modification fees pursuant to Section 104.19 , as determined by DCR, and submit the following: (1) a copy of the Statement of
Information filed with the Secretary of State, if applicable; (2) a copy of the Amended Articles of Organization or Incorporation, if applicable; (3) Ownership and Financial Interest Holder Disclosure Form
for all Persons associated with the BTRC, Applicant, or Licensee; (4) organizational chart showing all Owners and Indirect Owners in any multi-layer business structure; and (5) any additional information
or documents DCR deems necessary to consider the request. Persons subject to Section 104.20 also shall provide all business records and agreements necessary to demonstrate compliance with the minimum
Equity Share requirements.

(A) All Persons with a financial interest in the Applicant or Licensee shall be disclosed to DCR. This includes all Persons in a multi-layer business structure, as well as the chief financial officer,
members of the board of directors, partners, trustees, and all Persons who have control of a trust, and managing members or non-members managers of the entity. Each entity disclosed as having a
financial interest must disclose the identities of Owners and Indirect Owners until only individuals remain.

(B) After submitting an application under Section 104.06.1, an Applicant shall not be permitted to modify its Application to remove or replace the individual Owner who is the Social Equity
Individual Applicant, as defined in Section 104.20(a) or (b).

(C) If DCR determines that the Application, License or Operating Permit has been sold, leased, lent, or otherwise transferred without DCR approval, DCR may abandon the existing Application
and require that a new Application be submitted.

(ii) Legal Entity Name Change. Licensees shall not change the legal entity name under which the Person’s Application, License, or Operating Permit was submitted or issued without written approval
from DCR. The legal entity name can be modified provided that the entity or file number registered with the California Secretary of State, and the BTRC issued to the Person, remain the same. DCR may
require that the Applicant or Licensee submit the documents to demonstrate that the changes have been filed with the Secretary of State or approved by the State licensing agency.

(iii) Fictitious Business Name Change. Persons who register a Fictitious Business Name (FBN) with the Los Angeles County Registrar must disclose the FBN. A new FBN, or a change to the existing
FBN, must be disclosed by submitting a modification request form. Persons shall submit the necessary documents to demonstrate that the changes have been registered with the Los Angeles County
Registrar and the City’s Office of Finance.

4. Pre-Application Record. Persons shall not be permitted to modify a Pre-Application Record. (Amended by Ord. No. 188,451, Eff. 12/30/24.)

5. Temporary Approval Application. Applicants with pending Temporary Approval Applications may submit only the types of Temporary Approval Application modification requests permitted in the Rules
and Regulation. Persons shall not be permitted to sell, lease, lend, or otherwise transfer a Temporary Approval Application.

6. Temporary Approval. (Amended by Ord. No. 188,451, Eff. 12/30/24.) Licensees with Temporary Approval may submit only the types of Temporary Approval modification requests listed in Paragraphs (i) - (iii), or as permitted in the Rules and Regulations. Persons shall not be permitted to sell, lease, lend, or otherwise transfer a Temporary Approval. (i) Business Premises Relocation. Licensees shall not relocate Commercial Cannabis Activity without prior written approval from DCR. DCR shall review the relocation request and notify the Licensee if the new proposed Business Premises location is subject to denial pursuant to Section 104.04(b). If the proposed location is not subject to denial pursuant to Section 104.04(b), the Licensee shall submit a new Annual License Application and pay all applicable application fees. The new Annual License Application shall be processed in accordance with Section 104.06. If an Annual License is issued, the Licensee shall pay the Business Premises Relocation Fee pursuant to Section 104.19. If the relocation is deemed to be a discretionary project under CEQA, compliance with CEQA shall follow the procedures in Section 104.06(d). (A) Licensees authorized to conduct Commercial Cannabis Activities for cultivation (Types 1A, 1C, 2A, 3A, 5A), volatile manufacturing (Type 7), and Storefront Retailer Commercial Cannabis Activity (Type 10) may relocate within the same Community Plan Area or to a Community Plan Area that has not reached Undue Concentration. (B) Licensees authorized to conduct Commercial Cannabis Activities not identified in Subparagraph (A) may relocate to another location within the City. (C) Licensees shall meet the Temporary Approval or Operating Permit requirements at the new Business Premises before conducting Commercial Cannabis Activity at the new Business Premises. Licensees shall request cancellation of the License(s) issued to the Business Premises from which it seeks to relocate before Temporary Approval or an Operating Permit can be issued for the new Business Premises. (D) Any Temporary Approval or Operating Permit issued for Storefront Retailer Commercial Cannabis Activity (Type 10) at the original Business Premises shall expire no later than 180 days from the date the new Annual License Application Fee for the new Business Premises is paid. DCR may, in its sole discretion, grant an extension beyond the initial 180 days by allowing a Licensee to renew, in 90 day increments, a Temporary Approval or Operating Permit issued at the prior Business Premises location if it would not prevent DCR from issuing a Temporary Approval or Operating Permit to another commercial cannabis business. The original Business Premises for a Licensee approved to relocate shall not be considered for the purposes of distancing requirements under LAMC Section 105.02(a)(1)(B) during the initial 180 day period. (ii) Physical Modification of Business Premises. Licensees shall not perform interior physical modifications, alterations, additions, or expansions of the Business Premises without written approval from DCR. DCR may require: (1) a copy of an executed lease with proof of a deposit or property deed if the expansion includes additional adjacent units; (2) landowner acknowledgment that the Licensee has the right to occupy the Business Premises; (3) an updated Business Premises diagram; (4) any additional documents or information DCR deems necessary to consider the request; and (5) an inspection. (A) Licensees may increase the cultivation area within the existing Business Premises provided that the resulting cultivation area does not exceed the maximum cultivation area allowed for the license type under which the License was issued.

(iii) Entity Substitutions. A Licensee, in good standing with the City, may submit a request to transfer the License to a new Person. Once the entity substitution request modification is approved, Licenses may be transferred to a new Person provided a new Annual License Application is filed for the new Person, and all required Application fees are paid. The new Annual Application shall be processed pursuant to Section 104.06. Any previously-issued License shall be canceled before a License is issued to the new Person. The new Person shall not operate until a new Temporary Approval or Operating Permit has been issued by DCR. An entity substitution request shall include notarized signatures from the Authorized Agent, as defined in DCR’s Rules and Regulations. If an Authorized Agent has not been designated, notarized signatures are required from a majority of the Owners that own the Licensee entity directly without any intervening entities or Persons. If an Owner is an entity, the CEO or President, or equivalent executive position, may sign on behalf of the entity. If the License is subject to the requirements of Section 104.20, the request shall also include a notarized signature from the Social Equity Individual Applicant(s) associated with the License.

7. Annual License Application. Persons shall not be permitted to sell, lease, lend, or otherwise transfer an Annual License Application. An Applicant may submit only the types of the Annual License

Application modification requests permitted in the Rules and Regulation.

8. Annual License. Licenses are not transferable or assignable to another Person unless a request is submitted and approved by DCR. Annual Licensees may submit only the Annual License modification

request types permitted in the Rules and Regulation.

9. Operating Permit. Operating Permits are not transferable or assignable to another Person. If a Licensee has been issued an Operating Permit for the Business Premises from which it seeks to relocate, the

Licensee shall request cancellation of its Operating Permit at the original Business Premises before an Operating Permit for the new Business Premises may be issued. The Licensee shall meet all Temporary

Approval or Operating Permit requirements at the new Business Premises prior to conducting Commercial Cannabis Activity. Any Temporary Approval or Operating Permit issued for the Storefront Retailer Commercial Cannabis Activity (Type 10) at the original Business Premises shall expire no later than 180 days from the date the Business Premises Relocation Fee is paid. DCR may, in its sole discretion, grant an extension beyond the initial 180 days by allowing a Licensee to renew, in 90 day increments, a Temporary Approval or Operating Permit issued at the prior Business Premises location if it would not prevent DCR from issuing a Temporary Approval or Operating Permit to another commercial cannabis business. The original Business Premises for a Licensee approved to relocate shall not be considered for the purposes of distancing requirements under LAMC Section 105.02(a)(1)(B) during the initial 180-day period. (Amended by Ord. No. 188,451, Eff. 12/30/24.)

10. Other Modifications. DCR may consider other modifications on a case-by-case basis. The Applicant or Licensee shall submit a modification request form and pay the required modification fees to Section 104.19.

(d) Calculation of Time. Unless otherwise specified, when the final day for the filing of an application or appeal, or the payment of fees, falls on a Saturday, Sunday or City holiday, the time for filing shall be extended to the close of the next Business Day, and the effective or final date of any action, decision or determination shall be extended by the same amount of time.

(e) Payments. Unless otherwise specified, payments may be considered timely paid if an Applicant or Licensee schedules and confirms a payment appointment with the Office of Finance by the date of the payment deadline, notwithstanding that the payment appointment may occur after the date of the payment deadline. For the purpose of renewal payments due under LAMC Section 104.12(a) only, payments may also be considered timely paid if enclosed in a properly addressed envelope with sufficient postage, deposited in the mail, and postmarked by the payment deadline. (Amended by Ord. No. 188,686, Eff. 9/11/25.)

(f) Abandonment.

1. An Application or modification request may be deemed abandoned if DCR determines, at any time and in its sole discretion, that:

   (i) the Application or modification request is incomplete;

   (ii) fee payments required under Section 104.19 are not timely paid;

(iii) the Application is not associated with a Business Premises location that complies with Section 105.02(c) and/or the Applicant submits the Business Premises Surrender Form for the location listed on the Application; or

(iv) required information, forms, or documents have not been provided within the time allotted by DCR.

2. Unless another period of time is specified, all required information, forms and/or documents shall be submitted through the DCR Licensing Portal within 30 days, and all fees shall be paid within 30 days of the date of the invoice issuance. DCR shall not refund fees for an abandoned Application or modification request.

(g) Filing. Unless otherwise specified, any record, including but not limited to a Legal Business Entity Record, Pre-Application Record, Annual License Application, renewal record, or modification record, shall be filed following: (1) the submission of all required and completed information, forms, and documents through the DCR Licensing Portal for that particular Application, renewal, or modification process; and (2) the payment of all relevant fee(s) pursuant to Section 104.19 for that Application, renewal, or modification process. The date of filing shall be the date the payment clears at the City’s Office of Finance, or the date that DCR determines the information, forms, and documents are complete, whichever is later. (Amended by Ord. No. 188,451, Eff. 12/30/24.)

(h) Refiling Applications. An Applicant may refile an Annual License Application subject to the requirements of this subsection if the Annual License Application was deemed abandoned under Section 104.03(f) after January 1, 2022. An Applicant also may refile an Annual License Application subject to the requirements of this subsection if the Applicant possessed a License that expired under Section 104.12. Applications abandoned after June 30, 2023, may not be refiled unless the Application was deemed filed pursuant to Section 104.06(a). To refile, the Applicant shall be in good standing with the requirements of this article and shall not be delinquent on any City tax, fee, fine, or fee payments previously deferred. The refiled Application shall be submitted by the original Applicant entity. If the Applicant has an active corresponding State provisional license, DCR may grant Temporary Approval through the Applicant’s Annual License Application. The refiling process shall be initiated through the DCR Licensing Portal within five years of the date DCR notifies the Applicant by electronic mail that the original Application is abandoned or expired. (Amended by Ord. No. 188,812, Eff. 3/9/26.)

1. To refile, the Applicant shall submit a new Pre-Application Record pursuant to Section 104.03(a). If DCR determines the proposed Business Premises location complies with Section 104.04(b), the Applicant

shall submit an Annual License Application with all required information, forms and documents within one calendar year of the date DCR notifies the Applicant by electronic mail that the Pre-Application Record is eligible for further processing. If an Annual License Application is not filed within one calendar year, the Pre-Application shall be abandoned. If a Pre-Application Record filed pursuant to this subsection is ineligible, withdrawn, or abandoned, the Applicant may submit a new Pre-Application Record(s) identifying new Business Premises location(s), subject to the payment of any applicable fee in Section 104.19, and provided that the new Pre-Application Record(s) is submitted within the original five-year time limitation. (Amended by Ord. No. 188,812, Eff. 3/9/26.)

2. The refiled Application may not seek authorization to conduct any Commercial Cannabis Activities that were not listed in the original Application. A refiled Application is not subject to a finding of Undue

Concentration provided it is refiled in the same Community Plan Area as the original Application or a Community Plan Area that has not reached Undue Concentration. Applications originally subject to a finding of public convenience or necessity under Section 104.03(a)(1) shall be refiled at the same proposed Business Premises.

3. A refiled Annual License Application that is later deemed abandoned for any reason may not be refiled.

4. An Application abandoned, for any reason, prior to January 1, 2022, may not be refiled.

5. An Application previously denied, denied by operation of law, or deemed ineligible for further processing may not be refiled.

(i) Processing Timeframes. Application and modification processing shall occur within the timeframes specified in this subsection. Processing timeframes begin upon the filing of the relevant Application or

modification record pursuant to Section 104.03(g). (Amended by Ord. No. 188,812, Eff. 3/9/26.)

1. Pre-Application Record Processing.

   (i) Within 10 days of the submission of a Pre-Application Record through the DCR Licensing Portal, DCR shall issue the Applicant a Pre-Application Review Fee invoice. Pre- Application Records shall

comply with the requirements in the Rules and Regulations.

(ii) Within 30 days of the filing of a Pre- Application Record, DCR shall determine whether the Applicant’s proposed Business Premises complies with Section 104.04(b) and notify the Applicant of DCR’s determination by electronic mail.

(iii) If the Applicant’s Business Premises complies with Section 104.04(b), the Applicant shall submit a Temporary Approval Application or Annual License Application through the DCR Licensing
Portal in accordance with subdivision 2. The Pre-Application Record will be deemed abandoned if a Temporary Approval Application or Annual License Application is not timely submitted.

2. Temporary Approval Processing.

(i) The Applicant shall submit a Temporary Approval Application through the DCR Licensing Portal, including all required information, forms, and documents, within one (1) calendar year of the date
DCR notifies the Applicant by electronic mail that the Pre- Application Record is eligible for further processing. Temporary Approval Application records shall comply with the requirements in the Rules
and Regulations. The Applicant shall submit payment of the Temporary Approval Fee(s), pursuant to Section 104.04, by the date listed on the invoice.

(ii) Within 60 days of the filing of a Temporary Approval Application through the DCR Licensing Portal, DCR shall determine if the Temporary Approval Application is complete.

(A) If the Applicant files a modification request through the DCR Licensing Portal within 60 days of the submission of a Temporary Approval Application, DCR shall review the modification
request within 30 days of the filing of the modification request, and, if approved, complete its review of the Temporary Approval Application within 60 days of the approval of the modification
request.

(B) Once DCR completes its review of the Temporary Approval Application, an Applicant may submit only the modification request types permitted in the Rules and Regulation until a License is
issued.

(iii) If DCR determines that the Temporary Approval Application is complete, DCR shall update the Application status to “Local Compliance Underway” within seven (7) days of its determination. If
DCR determines there are any deficiencies in the Temporary Approval Application, DCR shall notify the Applicant by electronic mail of the specific information, forms or documents required by DCR, and
the Applicant shall provide the required information, forms or documents through the DCR Licensing Portal within 30 days of that notification. Within 30 days of an Applicant’s submission of the required
additional information, forms or documents through the DCR Licensing Portal, DCR shall complete its follow-up review.

(iv) Within 45 days of a request for an Initial Inspection through the DCR Licensing Portal, DCR shall conduct the Initial Inspection.

(v) Within 15 days of an Applicant passing the Initial Inspection or DCR determining that all Temporary Approval information, forms and documents are submitted and complete, whichever occurs last, DCR shall issue Temporary Approval.

3. Relocation Modification Processing.

(i) Within 15 days of the submission of a relocation request through the DCR Licensing Portal, DCR shall issue the Licensee an invoice for the Business Premises Relocation Fee.

(ii) Within 30 days of the filing of a relocation request, DCR shall determine whether the proposed Business Premises complies with Section 104.04(b) and shall notify the Licensee of DCR’s
determination by electronic mail. If DCR determines that the proposed Business Premises complies with Section 104.04(b), the Licensee may submit a new Temporary Approval Application for the new
Business Premises.

4. Ownership Modification Processing.

(i) Within 15 days of the submission of an ownership modification request through the DCR Licensing Portal, DCR shall issue the Applicant or Licensee an invoice for the applicable modification fee(s)

pursuant to Section 104.19.

(ii) Within 30 days of the filing of an ownership modification request, DCR shall grant or deny the modification request and notify the Applicant or Licensee of DCR’s determination by electronic mail. If

DCR determines that the proposed ownership modification violates any provision of this article or the Rules and Regulations, upon notice from DCR, the Applicant or Licensee shall be permitted to further amend its request within 30 days to correct any deficiencies, if possible.

(iii) If all Owners are transferring their ownership interest, the Applicant or Licensee shall resubmit all Application information, forms and documents, and pay all required fees, within 30 days of the date

DCR notifies the Applicant or Licensee by electronic mail that the modification request is approved.

5. Entity Substitution Processing.

   (i) Within 15 days of the submission of a modification request to substitute the Applicant or Licensee listed on an Application, License or Operating Permit through the DCR Licensing Portal, DCR shall

   issue the Applicant or Licensee an invoice for the applicable modification fee(s) pursuant to Section 104.19.

   (ii) Within 30 days of the filing of a modification request to substitute the Applicant or Licensee, DCR shall approve or deny the modification request. If DCR approves the modification request, the

   Applicant or Licensee shall submit a new Application and all required information, forms and documents for the new Applicant entity within 30 days of the date DCR notifies the Applicant by electronic mail that the modification request is approved. Once a new Application is filed, upon request from the State, DCR shall update the Application status to “Local Compliance Underway.”

   (iii) DCR shall not issue a Temporary Approval, License, or Operating Permit to the new Applicant entity until it meets the relevant requirements. If the original Licensee has been issued a License or

   Operating Permit, it shall request cancellation of that License or Operating Permit before a License or Operating Permit may be issued to the new Applicant entity. The original Licensee may continue to conduct Commercial Cannabis Activity until the License expires or the original Licensee requests cancellation of the License issued to it, whichever is earlier.

(Title and Section Amended by Ord. No. 187,879, Eff. 6/2/23.)

(a) General Denial Reasons. (Amended by Ord. No. 188,451, Eff. 12/30/24.) With no hearing and based upon written findings supported by evidence in the record, the issuance of Temporary Approval, an Annual License, or the renewal of Temporary Approval or an Annual License, may be denied for any of the following reasons:

1. The Applicant or Licensee denied DCR employees or agents access to the Business Premises;

2. The Applicant or Licensee procured the License by fraud or deceit, made a material misrepresentation, false statement, or knowingly failed to disclose a material fact;

3. The Applicant or Licensee failed to timely provide DCR with requested information, forms or documents;

4. The Applicant or Licensee was denied a license, permit or other authorization to engage in Commercial Cannabis Activity by the State of California;

5. Issuance of a License would create a significant public safety problem as documented by a law enforcement agency;

6. The Applicant or Licensee failed to adhere to the requirements of this article or the Rules and Regulations;

7. The Applicant or Licensee engaged in unlicensed Commercial Cannabis Activity in violation of Section 104.15;

8. Temporary Approval or an Operating Permit has been denied, suspended, or revoked;

9. The Applicant or Licensee failed a Business Premises inspection by DCR, another City agency, or the Los Angeles County Department of Public Health, or was denied a license, permit, or other authorization required to engage in Commercial Cannabis Activity by any other agency; or

10. If the Application is subject to Section 104.20, the Applicant or Licensee failed to comply with any requirement in Section 104.20.

(b) Business Premises Denial Reasons. With no hearing and based upon written findings supported by evidence in the record, a Pre-Application Record, Temporary Approval, an Annual License, or the renewal of Temporary Approval or an Annual License, may be denied for any of the following reasons:

1. The proposed Business Premises fails to meet any of the requirements of Article 5 of Chapter X of this Code;

2. The Applicant’s Business Premises is located in a Community Plan Area which has reached Undue Concentration, unless the City Council has adopted written findings that approval of the License

Application would serve public convenience or necessity, supported by evidence in the record;

3. The Business Premises is owned or managed by a Person who holds office in any agency of the State of California and any of its political subdivisions, including the City and any of its agencies, departments, commissions or boards of the State of California or its political subdivisions if the Person’s duties include the enforcement or regulation of Commercial Cannabis Activity or any other penal provisions of law of the State of California prohibiting or regulating Commercial Cannabis Activity; 4. For a period of five years from the date of any conviction if the Business Premises was the site of illegal volatile Cannabis manufacturing under Health and Safety Code Section 11379.6; 5. For a period of five years from the date of any conviction if the Business Premises was the site of distribution of Cannabis to minors; 6. For a period of five years from the date of any conviction if the Business Premises was the site of any illegal Commercial Cannabis Activity after April 1, 2018; 7. For a period of five years from the date of any conviction if the Business Premises was the site of unlicensed Commercial Cannabis Activity, in violation of Section 104.15, on or after January 1, 2018; 8. For a period of five years from the date of any conviction if the Business Premises is located on any portion of any parcel of land used as an Unlawful Establishment, in violation of Section 104.15, on or after January 1, 2018;

   9. For a period of five years from the date of any utility disconnection if the Business Premises is located on a parcel of land that was the site of a disconnection of utilities under Section 104.15(e); (Amended

   by Ord. No. 188,451, Eff. 12/30/24.)

   10. For a period of five years from the date of any padlocking if the Business Premises is located on a parcel of land that was the site of padlocking under Section 104.15.1; or (Amended by Ord. No. 188,451, Eff. 12/30/24.)

   11. For a period of five years from the date of any citation if the Business Premises is located on a parcel of land that was the site of a citation issued under the City’s Administrative Citation Enforcement

   Program for a violation of Section 104.15, on or after January 1, 2018. (Added by Ord. No. 188,451, Eff. 12/30/24.)

(c) Ownership Denial Reasons. With no hearing and based upon written findings supported by evidence in the record, Temporary Approval, an Annual License, or the renewal of Temporary Approval or an Annual License may be denied if the Owner(s) of the Applicant or Licensee is ineligible for any of the following reasons:

1. An individual who holds office in, is employed by, or is appointed to, any agency of the State of California and any of its political subdivisions, including the City and any of its agencies, departments,

commissions or boards, when the individual’s duties include the enforcement or regulation of Commercial Cannabis Activity or any other penal provisions of law of the State of California prohibiting or regulating Commercial Cannabis Activity; or

2. Any entity that is incorporated outside of the United States.

(d) Disqualification of Primary Personnel. Primary Personnel convicted of any of the following offenses within the time specified shall be disqualified and are prohibited from applying for or holding a Temporary Approval or Annual License. Unless the Primary Personnel is a Social Equity Individual Applicant, the Applicant may submit a modification request pursuant to Section 104.03(c) to remove the disqualified Primary Personnel. Primary Personnel may be subject to LiveScan or a similar review of criminal history.

1. For a period of five years from the date of any conviction for Illegal volatile Cannabis manufacturing under Health and Safety Code Section 11379.6;

2. For a period of five years from the date of any conviction for a violation of any State or local law involving wage or labor provisions;

3. For a period of five years from the date of any conviction for a violation of any law involving distribution of Cannabis to minors;

4. For a period of five years from the date of any conviction for Illegal Commercial Cannabis Activity after April 1, 2018;

5. For a period of five years from the date of any conviction for a violation of any State or local law involving distribution or sales of tobacco or alcohol to minors;

6. The later of a period of 20 years from the date of any conviction for or completion of a term of imprisonment, supervised release, or probation imposed as a sentence for a conviction for a violent felony as defined in California Penal Code Section 667.5, a serious felony conviction as defined in California Penal Code Section 1192.7, or a felony conviction for violating any law involving violent crimes, sex trafficking, rape, crimes against children, gun crimes, or hate crimes;

7. For a period of 20 years from the date of a felony conviction for a crime involving fraud, deceit, or embezzlement. In addition, an individual with a felony conviction under this subsection shall be prohibited from serving as an Authorized Agent, as defined in the Rules and Regulations, or agent for service of process on any Application; or

   8. For a period of five years from a civil judgment concerning illegal Commercial Cannabis Activity.

(e) Suspension for Unlicensed Activity or Life Safety Violations. DCR may immediately suspend a Temporary Approval or Operating Permit without a hearing based upon DCR’s discovery or notice from another city, state or public agency that: (1) the Licensee’s use of or conduct at the Business Premises poses an imminent threat to life or public safety; (2) the Licensee is conducting Commercial Cannabis Activity without all necessary permits, inspections or similar clearances from the City, state or other public agency; or (3) the Licensee is conducting Commercial Cannabis Activity without an active State License for that Commercial Cannabis Activity. After suspension, the Licensee may request an administrative hearing pursuant to Section 104.14. A Licensee may not conduct Commercial Cannabis Activity while the Temporary Approval or Operating Permit is suspended. (Amended by Ord. No. 188,451, Eff. 12/30/24.)

1. If DCR suspends a Temporary Approval or Operating Permit because the Licensee is conducting Commercial Cannabis Activity without a State License or without a required permit, inspection or clearance to operate from another city, state or public agency, DCR may reinstate the Temporary Approval or Operating Permit if the Licensee provides evidence of the relevant State License(s) or required permit, inspection or clearance to operate, or if such a showing is made during an administrative hearing. DCR shall not reinstate the Temporary Approval or Operating Permit if a utility disconnection, padlocking, or other enforcement action occurs during the period of suspension that renders the Business Premises ineligible under Section 104.04(b).

2. DCR may issue a Notice of Violation based upon notice from another city, state, or other public agency, including but not limited to the Los Angeles Fire Department or Department of Building and Safety, that the Licensee has not taken the necessary corrective action, within 90 days, or other time allotted by the citing agency, to cure a violation, notice to correct, or other form of non-compliance. The Licensee may request an administrative hearing pursuant to Section 104.14.

(Title and Section Amended by Ord. No. 187,879, Eff. 6/2/23.)

(a) Temporary Approval Application – Filing. A Temporary Approval Application shall be filed following: (1) a determination that the Pre-Application Record is eligible for further processing pursuant to Section 104.03(a); (2) the submission to DCR’s Licensing Portal of all completed Temporary Approval information, forms, and documents required by the Rules and Regulations; and (3) and the payment of the applicable application fee(s) for each Commercial Cannabis Activity pursuant to Section 104.19. The Temporary Approval Application shall be abandoned if requested information or documents are not submitted, or fees are not paid, within the allotted time.

(b) Temporary Approval. DCR may, at its discretion, issue Temporary Approval to engage in Commercial Cannabis Activity, provided that the Applicant pays the Temporary Approval Application Fee for each Commercial Cannabis Activity, pursuant to Section 104.19 , and the following requirements are met: (1) the Temporary Approval Application is filed pursuant to subsection (a); (2) the Business Premises passes an Initial Inspection; and (3) if applicable, any Applicant subject to Section 104.20 provide all business records and agreements necessary to demonstrate that the Social Equity Individual Applicant owns at least the minimum Equity Share required under Section 104.20(a)(2). An Applicant seeking Temporary Approval shall submit all required information, forms, and documents through the DCR Licensing Portal within one (1) calendar year of the date DCR notifies the Applicant by electronic mail that the Pre-Application Record is eligible for further processing, or the Temporary Approval Application shall be abandoned pursuant to Section 104.03(f).

(c) Issuance of Temporary Approval does not create a vested right in the holder to either a renewal of the Temporary Approval, or to the issuance of a subsequent Annual License. Temporary Approval authorizes the Licensee to conduct Commercial Cannabis Activity(ies), subject to the Licensee obtaining all necessary permits, licenses, or other authorizations required by law from the City, State or other public agencies. Temporary Approval does not waive or otherwise circumvent other City or State requirements or necessary permits from the City, State, or other public agencies, including, but not limited, to, a Certificate of Occupancy, permit or authorization of the Los Angeles Fire Department, health permit from the County of Los Angeles, or a State License. A Licensee with Temporary Approval shall follow all applicable Rules and Regulations as would be required if the Applicant held an Annual License of the same type.

(d) If, at any time during the processing of an Application or after the issuance of Temporary Approval, it is discovered that an Application has been improperly prepared or required information, forms or documents have not been submitted in accordance with this article or the Rules and Regulations, upon notification to the Applicant, processing of that Application shall be suspended until the Application has been corrected or the required information, forms or documents are provided.

(e) DCR shall cease accepting new Temporary Approval Applications from any Applicant not subject to Section 104.20 by June 30, 2023. (Amended by Ord. No. 188,069, Eff. 12/15/23.)

(f) DCR shall cease accepting new Temporary Approval Applications from Social Equity Applicants by July 31, 2023. (Amended by Ord. No. 188,069, Eff. 12/15/23.)

(g) DCR may grant Temporary Approval through an Annual License Application to any Applicant subject to Section 104.20 seeking to conduct Storefront Retailer Commercial Cannabis Activity until January 1, 2031, provided the Applicant has an active State provisional license or State annual license and submits an Application prior to August 31, 2030. (Amended by Ord. No. 188,069, Eff. 12/15/23.)

(h) DCR may renew Temporary Approval for Social Equity Licensees conducting Storefront Retailer Commercial Cannabis Activity until February 28, 2031. DCR may renew Temporary Approval for all other Licensees until February 28, 2027. (Amended by Ord. No. 188,069, Eff. 12/15/23.)

(i) Any Temporary Approval issued for calendar year 2031 may not be renewed and shall expire on December 31, 2031, after 11:59 p.m. (Added by Ord. No. 188,069, Eff. 12/15/23.)

(j) Any Temporary Approval Application abandoned under Section 104.03(f) after July 1, 2023, shall be refiled as an Annual Application. (Added by Ord. No. 188,069, Eff. 12/15/23.)

(Added by Ord. No. 185,343, Eff. 12/19/17.)

(a) Proposition M Priority Processing Applications for Retailer Commercial Cannabis Activity, which includes delivery, and on-site cultivation consistent with Proposition D, shall be accepted and processed by DCR for the first 60 days after DCR starts accepting applications. EMMD Applicants may apply for a maximum of one Microbusiness License (Type 12); or a maximum combination of one Retailer License (Type 10), one Distributor License (Type 11), one Manufacturer License (Type 6 only) and one Cultivation, Indoor (Type 1A, 1C, 2A or 3A) License for the one location identified in its original or amended BTRC and as demonstrated in previous Commercial Cannabis Activity as of March 7, 2017. (Amended by Ord. No. 185,608, Eff. 7/23/18.)

(b) An EMMD that as of January 1, 2018, meets all of Proposition D requirements shall continue to have limited immunity up until the time the EMMD receives Temporary Approval. The limited immunity shall terminate if the EMMD Applicant fails to seek or obtain a Temporary Approval, although the limited immunity shall be extended through any appeal of the Temporary Approval denial. The limited immunity shall be as follows: the EMMD shall not be subject to the remedies set forth in Los Angeles Municipal Code Sections 11.00 or 12.27.1 solely on the basis of engaging in medical Commercial Cannabis Activity, provided however that, as authorized by California Health and Safety Code Section 11362.83, this limited immunity is available and may be asserted as an affirmative defense only so long as the requirements of this Section are adhered to by the EMMD and only by an EMMD at the one Business Premises operated by the EMMD. This limited immunity shall not be available to and shall not be asserted as an affirmative defense to any violation of law except as expressly set forth in this Section. Further, nothing contained in this limited immunity is intended to provide or shall be asserted as a defense to a claim for violation of law brought by any county, state or federal governmental authority.

(c) DCR’s determination of whether an EMMD Applicant is eligible for Proposition M Priority Processing shall be made with no hearing and shall be final and effective upon the close of the 15-day appeal period if the EMMD Applicant does not timely request an administrative hearing as provided in Section 104.14. In making its determination, DCR may request additional information from the EMMD Applicant. DCR shall consider whether the EMMD Applicant cured any non-substantive administrative violations of LAMC Section 45.19.6.3, Subsections C. through F., and M. DCR shall make written findings when the EMMD Applicant does not meet the requirements for priority processing for EMMDs. If DCR deems a Proposition M Priority Processing Application complete and eligible for a Proposition M Priority Processing, DCR shall issue the EMMD a Temporary Approval after the EMMD Applicant submits all required and completed information, forms, and documents to meet the Temporary Approval requirements in the Rules and Regulations. An EMMD Applicant may only conduct Commercial Cannabis Activity with an active State License for that Commercial Cannabis Activity. DCR may immediately suspend or revoke the Temporary Approval if the EMMD fails to abide by any City operating requirement. An EMMD Applicant issued a Temporary Approval shall have their Annual License Application processed pursuant to Section 104.06. (Amended by Ord. No. 187,879, Eff. 6/2/23.)

(d) If Proposition M Priority Processing is denied by DCR and, if appealed to the Commission or hearing officer and is also denied by the Commission or the hearing officer, the EMMD Applicant shall immediately cease all Commercial Cannabis Activity at the Business Premises and the EMMD Applicant shall not be entitled to the limited immunity from prosecution afforded by Proposition D. An EMMD Applicant determined ineligible for Proposition M Priority Processing may apply for a License by filing a new application and abiding by the application priority in effect at that time. DCR shall not refund any fee for an application determined ineligible for Proposition M Priority Processing. (Amended by Ord. No. 186,703, Eff. 7/10/20.)

(e) An EMMD otherwise eligible for Proposition M Priority Processing shall not be denied a Temporary Approval or a License based upon the EMMD’s Business Premises location initially or amended prior to the enacted date of Section 45.19.7.2, or subsequent location approved pursuant to Section 45.19.7.2, if located in a Community Plan Area that has reached Undue Concentration. An EMMD otherwise eligible for Proposition M Priority Processing shall not be denied a Temporary Approval or a License based upon the location of: (1) the EMMD’s original Business Premises; (2) Business Premises amended prior to the enactment of Section 45.19.7.2; or (3) subsequent Business Premises approved pursuant to Section 45.19.7.2, if located in a Community Plan Area that has reached Undue Concentration. (Amended by Ord. No. 187,095, Eff. 7/1/21.)

(f) An EMMD shall submit to a financial audit by the City’s Office of Finance and clear all City tax obligations prior to the issuance of a Temporary Approval or a License, and the renewal of a Temporary Approval or a License. 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. (Amended by Ord. No. 186,703, Eff. 7/10/20.)

(g) An Initial Inspection for a Temporary Approval is not required for an EMMD whose Proposition M Priority Processing Application is accepted by DCR. (Amended by Ord. No. 186,703, Eff. 7/10/20.)

(h) An EMMD issued a License pursuant to Proposition M Priority Processing is not required to adhere to the zone, distance and sensitive use restrictions stated in Section 105.02 of this Code as long as, and on the condition that, the EMMD operates and continues to operate in compliance with the distance and sensitive use restrictions (Los Angeles Municipal Code Section 45.19.6.3 L. and O.) of Proposition D notwithstanding those restrictions are or would have been repealed. This limited grandfathering shall not create, confer, or convey any vested right or non-conforming right or benefit regarding any activity conducted by the EMMD beyond the term and activities provided by the City License. This limited grandfathering shall cease on December 31, 2025, after which all EMMDs shall be required to cease conducting any Commercial Cannabis Activities on Business Premises that do not meet the zone requirements of Article 5 of Chapter X of this Code. If an EMMD issued a License fails to operate in compliance with the specified provisions of Proposition D, the EMMD’s Temporary Approval or License shall be subject to revocation. (Amended by Ord. No. 187,095, Eff. 7/1/21.)

(Added by Ord. No. 185,343, Eff. 12/19/17.)

(a) An Applicant who applies for a License for Commercial Cannabis Activity that is not Retailer Commercial Cannabis Activity and who meets the following criteria, as determined by DCR, shall receive Temporary Approval if: (1) the Applicant was engaged prior to January 1, 2016, in the same Commercial Cannabis Activity that was not Retailer Commercial Cannabis Activity for which it now seeks a License; (2) the Applicant is not engaged in Retailer Commercial Cannabis Activity at the Business Premises; (3) the Applicant provides evidence and attests under penalty of perjury that the Applicant was a supplier to an EMMD prior to January 1, 2017; (4) the Business Premises meets all requirements of Article 5 of Chapter X of this Code; (5) the Applicant passes an Initial Inspection; (6) there are no fire or life safety violations on the Business Premises; (7) the Applicant paid all outstanding City business tax obligations; (8) the Applicant provides a written attestation that the Applicant will enter into an 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; (9) the Applicant attests that the Applicant will cease all operations if denied a State License or City License; (10) the Applicant qualifies under the Social Equity Program as it existed as of January 1, 2020; and (11) the Applicant submits all required and completed information, forms, and documents to meet the Temporary Approval requirements in the Rules and Regulations. DCR may immediately suspend or revoke the Temporary Approval if the Applicant fails to abide by any City operating requirement. For purposes of this subsection only, an Applicant who 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. Prior to determining that an Applicant is eligible for processing under this section, DCR, at its discretion, may provide an Applicant with Local Compliance Underway status to apply for a provisional license from the State. A status of Local Compliance Underway shall not permit an Applicant to conduct Commercial Cannabis Activities unless DCR grants the Applicant Temporary Approval or an Operating Permit. Local Compliance Underway must be renewed annually pursuant to Section 104.12 until a License is issued. (Amended by Ord. No. 187,879, Eff. 6/2/23.)

(b) A completed application accepted by DCR as eligible for processing under this section shall be processed and reviewed pursuant to Section 104.06. DCR may request additional information from the Applicant. DCR shall make written findings when the Applicant does not meet the requirements for processing under this section. DCR’s determination of whether an Applicant is eligible for processing under this section shall be made with no hearing and shall be final and effective 15 days after the date of its mailing if the Applicant does not timely request an administrative hearing, as provided in Section 104.10. (Amended by Ord. No. 186,703, Eff. 7/10/20.)

(c) An Applicant that submitted an application pursuant to this section by September 13, 2018, paid all fees required under Section 104.19, and received from DCR local authorization under this section shall not be subject to the remedies set forth in Los Angeles Municipal Code Sections 11.00 or 12.27.1 solely on the basis of Non-Retailer Commercial Cannabis Activity; provided, however, that, as authorized by California Health and Safety Code Section 11362.83, this limited immunity is available and may be asserted as an affirmative defense only so long as the requirements of this section are adhered to by the Applicant and only by an Applicant at the one Business Premises identified in its application. This limited immunity shall terminate upon the close of the 15-day appeal period if the Applicant does not timely request an administrative hearing, as provided in Section 104.10. This limited immunity shall not be available to and shall not be asserted as an affirmative defense to any violation of law except as expressly set forth in this section. Further, nothing contained in this limited immunity is intended to provide or shall be asserted as a defense to a claim for violation of law brought by any county, state or federal governmental authority. (Amended by Ord. No. 186,703, Eff. 7/10/20.)

(d) Once application processing pursuant to Section 104.07 begins, DCR may, at its discretion, accept Section 104.08 applications for a period of 30 business days. (Amended by Ord. No. 185,608, Eff. 7/23/18.)

(e) An Applicant under this section that has not received Temporary Approval shall report to DCR by July 1, 2019, whether it has made substantial progress, as determined by DCR, towards preparing its Business Premises to pass an Initial Inspection. An Applicant who cannot report substantial progress by July 1, 2019, shall have its application deemed abandoned. An Applicant who reports substantial progress by July 1, 2019, shall be required to pass an Initial Inspection by December 31, 2019, or its application shall be deemed abandoned unless DCR grants the Applicant an extension due to extenuating circumstances as determined by DCR in its sole discretion. (Amended by Ord. No. 186,703, Eff. 7/10/20.)

(Amended by Ord. No. 185,629, Eff. 7/2/18.)

An Applicant seeking a Testing Lab License (Type 8) may submit an application to DCR at any time after DCR first accepts applications for any License. If an Applicant obtains or attests that it has or intends to seek ISO/IEC 17025 accreditation for all testing methods required by Title 16, Div. 42 of the California Code of Regulations and meets all laboratory-employee qualifications required by Title 16, Div. 42 of the California Code of Regulations, DCR may issue a Temporary Approval to the testing lab before completion of a pre-licensing inspection. If an Applicant is denied an ISO/IEC 17025 accreditation, its Temporary Approval shall be immediately revoked and it shall immediately cease all Testing Commercial Cannabis Activity.

(Amended by Ord. No. 187,879, Eff. 6/2/23.)

(a) Appeals – General.

1. Unless otherwise specified, an appeal must be filed with DCR within 15 days of the date the written decision being appealed was mailed or sent by electronic mail, whichever is earlier. An appeal shall be

filed following the submission of all required and completed appeal information, forms, and documents, and the payment of all relevant appeal fee(s) pursuant to Section 104.19. The right to an appeal shall be waived if the Applicant or Licensee fails to timely file an appeal. Failure to file an administrative appeal shall constitute a failure to exhaust administrative remedies.

2. The Applicant or Licensee shall set forth the specific basis upon which an error or abuse of discretion by the lower level decision maker is asserted. The lower level decision maker shall transmit to the

appellate body the appeal, the file of the matter, along with any report, if one was prepared, responding to the allegations made in the appeal.

3. The time for holding any hearing required under this section may be extended by mutual agreement between the appellate body and the appellant. If the appellate body is the Commission, DCR shall have the

authority to extend the time on behalf of the Commission. Failure of the appellate body to act within the time period allowed, including any extensions, shall be deemed a denial of the appeal.

4. The appellate body may consider the decision and record before the lower level decision maker and any new written information and oral testimony timely provided to the appellate body. The appellate body

shall rule on the record and evidence de novo, substituting its own judgment for that of the lower level decision maker without deferring to the lower level decision maker’s findings and determinations. The appellate body may reverse or modify, in whole or in part, any decision of the lower level decision maker, including any penalties or fines assessed by the lower level decision maker. The appellate body shall make written findings supported by evidence in the record.

5. The appellate body shall mail its determination on the appeal within 30 days of the closure of the hearing on the appeal. Failure of the appellate body to issue a timely determination shall be deemed a denial of

the appeal.

6. If there are no further appeals available, a determination issued by an appellate body is final and effective on the date of mailing the determination and shall exhaust all administrative remedies.

(b) Appeals to Administrative Hearing Officers.

1. A request for an administrative hearing may be filed for the matters listed in Section 104.14(a). Administrative appeal hearings shall be conducted in the manner specified in Section 104.14.

2. An administrative hearing officer shall hold a hearing to consider an appeal within 60 days of the date the request for an administrative hearing is filed.

3. There is no further appeal to the Commission or City Council of an administrative hearing officer’s determination. A final determination by an administrative hearing officer shall exhaust all administrative remedies.

(c) Appeals to the Commission.

1. A request for an appeal to the Commission may be filed by the Applicant for the following:

   (i) DCR’s denial of an Annual License Application for Storefront Retailer or Microbusiness Commercial Cannabis Activity with on-site sales pursuant to Section 104.06(b)(2)(ii).

   (ii) DCR’s denial of an Annual License Application for Commercial Cannabis Activity that is not Storefront Retailer or Microbusiness with onsite sales pursuant to Section 104.06(c)(1).

2. The Commission shall hold a public hearing to consider an appeal within 90 days of the Commission’s receipt of the appeal. DCR shall provide notice of a Commission public hearing under Section 104.06(b) (1)(iii)(A) - (C) no less than 20 days prior to the date of the hearing.

(d) Appeals to City Council.

1. A request for an appeal to the City Council may be filed by the Applicant for the Commission’s denial of an Annual License application for Storefront Retailer or Microbusiness Commercial Cannabis

Activity with on-site sales pursuant to Section 104.06(b)(2)(v).

2. The City Council shall hold a public hearing to consider the appeal within 15 City Council meeting days of City Council’s receipt of the appeal. No later than three days prior to any City Council hearing under this subsection, DCR shall provide notice of the hearing by electronic mail to the Applicant.

(Amended by Ord. No. 187,879, Eff. 6/2/23.)

(a) A License is not transferable unless the change to the Licensee’s organizational structure or ownership is submitted to and approved by DCR pursuant to Section 104.03(c). A change from non-profit status to for- profit status by an EMMD is exempt from this requirement if no other ownership change is made in accordance with Proposition D’s ownership rules and notice is provided to DCR within five days. This exemption is not

available after a License is issued.

(b) A License for Storefront Retailer or Microbusiness Commercial Cannabis Activity with on-site sales must be prominently displayed at the Business Premises in a manner that makes it readable from the exterior of the Business Premises.

(c) Licensees shall designate a supervisor, manager or person-in-charge at all times during regular business hours.

(d) The name and contact number of the Neighborhood Liaison must be prominently displayed at the Business Premises in a manner that makes it readable from the exterior of the Business Premises.

(e) Cannabis, Cannabis products, and Cannabis- related materials associated with a License or Licensee’s Business Premises shall not be considered “Drug paraphernalia” as defined in LAMC Section 45.19.5.

(f) An Applicants or Licensee shall adhere to all the operational requirements in the Rules and Regulations.

(g) Applicants and Licensees shall be subject to inspection, investigation or audit by DCR or its agents, with no notice required, to determine compliance with this article or the Rules and Regulations. An inspection, investigation or audit is a review of any books, records, accounts, inventory, or on-site operations specific to the Business Premises and License.

1. DCR and its agents may conduct an on-site inspection prior to issuing a new or renewal License, or for the purpose of a compliance inspection resulting from a complaint or investigation, in accordance with the requirements of the State of California and the Rules and Regulations. DCR may record the inspection, investigation, or audit.

2. Failure to cooperate fully with an inspection, investigation or audit is a violation of this article.

(h) In construing and enforcing this article and the Rules and Regulations, any act, omission, or failure of an agent, officer, or other person acting for or employed by a Licensee, within the scope of their employment or office, shall in every case be deemed the act, omission, or failure of the Licensee.

(i) If an Applicant or Licensee contends that any information provided to the City is confidential, the Applicant or Licensee shall mark that information as confidential at the time of submitting it to the City. If the City obtains a request for disclosure of the information, the City may provide the Applicant or Licensee notice of the request for disclosure and allow the Applicant or Licensee a period of time determined by the City for the Applicant or Licensee to seek a court protective order. The City may publically release the information absent the issuance of the protective order or if the City is required by law to release the information.

(j) A Licensee shall make a good-faith effort to have no less than 30% of the weekly hours of the Licensee’s workforce performed by employees whose primary place of residence is within a 3-mile radius of the Business Premises. A Licensee shall make a good-faith effort to have no less than 10% of the weekly hours of the Licensee’s workforce performed by employees who are Transitional Workers. Transitional Worker means a person who, at the time of starting employment at the Business Premises, resides in an Economically Disadvantaged Area or Extremely Economically Disadvantaged Area, as those terms are defined in Section 11.5.6 of this Code, and faces at least two of the following barriers to employment: (1) being homeless; (2) being a custodial single parent; (3) receiving public assistance; (4) lacking a GED or high school diploma; (5) having a criminal record or other involvement with the criminal justice system; (6) suffering from chronic unemployment; (7) being emancipated from the foster care system; (8) being a veteran; or (9) being over the age of 65 and financially compromised. At a minimum, a Licensee is required to contact local community-based organizations, City of Los Angeles WorkSource Centers, and other such similar organizations to facilitate job outreach, development, and placement services. A Licensee is required to provide to DCR a detailed annual report on or before the final day of February every year that provides evidence of its outreach efforts, including the number of persons interviewed, and details on who was hired to satisfy the good-faith effort requirement.

(k) It shall be unlawful for a Licensee or any other party to discriminate in any manner or take adverse action against any employee in retaliation for exercising rights protected under this article. These rights include, but are not limited to: the right to file a complaint or inform any person about any party’s alleged noncompliance with this article; and the right to inform any person of their potential rights under this article and to assist the employee in asserting such rights. Protections under this article shall apply to any Employee who mistakenly, but in good faith, alleges noncompliance with this article. Taking adverse action against an Employee within 90 days of the Employee’s exercise of rights protected under this article shall raise a rebuttable presumption of having done so in retaliation for the exercise of such rights.

(l) All Licensees shall obtain a permit from the Los Angeles County Department of Public Health. If the Licensee is engaged in Storefront Retailer or Microbusiness Commercial Cannabis Activity with on-site sales, the Licensee shall also obtain an Emblem Placard pursuant to Section 104.23.

(Added by Ord. No. 185,343, Eff. 12/19/17.)

(a) All records shall be renewed annually, including Temporary Approvals, Annual Licenses, Annual Licenses with Operating Permits, and records with a status of Local Compliance Underway. If a record is not timely renewed, it shall expire after 11:59 p.m. on December 31 for the year issued. To renew any record, an Applicant or Licensee shall submit a renewal application, and pay the applicable renewal fee pursuant to Section 104.19, no earlier than 120 days before the expiration of the record, and no later than 60 days before the expiration of the record. Failure to receive a notice for renewal from DCR does not relieve a Licensee or Applicant of the obligation to renew. In the event that a License or Operating Permit is not renewed prior to the expiration date, the Licensee shall cease all Commercial Cannabis Activity until such time that the Licensee is issued a new License or Operating Permit from DCR and a State License. (Amended by Ord. No. 187,879, Eff. 6/2/23.)

1. Notwithstanding the deadlines in Subsection (a), after January 1, 2021, Licensees may submit a late renewal application and/or make a late renewal fee payment between November 3rd and December 31st

before the expiration date of a License or Temporary Approval. Late renewal applications and/or late renewal fees submitted between November 3rd and December 31st shall be subject to the Expedited Services Fees (Time and a Half Rate), provided in Section 104.19(h), which shall be due by December 31st.

2. Notwithstanding the deadlines in Subsection (a), after January 1, 2021, Licensees may submit a late renewal application and/or make a late renewal fee payment between January 1st and the final day of

February after the expiration date of a License or Temporary Approval. Late renewal applications and/or late renewal fees submitted between January 1st and the final day of February shall be subject to the Expedited Services Fees (Double Time Rate), provided in Section 104.19 (h), which shall be due by the final day of February. All commercial cannabis businesses with an expired License or Temporary Approval must cease unlicensed Commercial Cannabis Activity until a new License or Temporary Approval is issued. (Amended by Ord. No. 187,095, Eff. 7/1/21.)

3. One-Time Extension Due to COVID-19. Due to the COVID-19 pandemic and the Mayor’s emergency orders relating to COVID-19, Licensees may submit a late 2019, 2020, and/or 2021 renewal

application and/or make late renewal fee payments for 2019, 2020, and/or 2021 renewal applications on or before July 31, 2021. All renewal applications and/or renewal fees submitted pursuant to this one-time extension shall be subject to the Expedited Services Fees (Double Time Rate), set forth in Section 104.19 (h), which shall be due at the time of renewal fee payment. Expired licenses may be reinstated if all applicable renewal fees and/or Expedited Services Fees are timely paid. (Amended by Ord. No. 187,058, Eff. 7/4/21.)

(b) At the time a License renewal application is submitted to DCR, a Licensee must include the information, forms and documents required by the Rules and Regulations. As part of the renewal process, DCR may require modification to the Licensee’s security plan. Except for Tier 3 Licensees, Licensees subject to Section 104.20 shall also submit Equity Share documents in compliance with Section 104.20(a)(2). (Amended by Ord. No. 187,879, Eff. 6/2/23.)

(c) To renew a record, the Applicant or Licensee shall be in good standing with the requirements of this article and shall not be delinquent on any City tax, City fee, or fee payments previously deferred under Section 104.20(c)(4)(ii). For purposes of this subsection only, a Licensee who 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 shall not be deemed delinquent on any City tax. (Amended by Ord. No. 187,879, Eff. 6/2/23.)

(d) Any Licensee who has ceased a Commercial Cannabis Activity at a Business Premises for a continuous period of 180 days shall not be authorized to renew its license unless authorized by DCR in accordance with the Rules and Regulations. (Amended by Ord. No. 186,703, Eff. 7/10/20.)

(e) DCR may cancel any License upon the request of the Licensee.

(f) A Licensee may file an administrative appeal of DCR’s decision to deny a renewal pursuant to Section 104.14 within 15 days of the date of DCR sent the denial letter by electronic mail. (Amended by Ord. No. 187,879, Eff. 6/2/23.)

(Amended by Ord. No. 187,879, Eff. 6/2/23.)

(a) Violations of this Article. Within five years of discovering a Licensee has violated this article, the Rules and Regulations, or a License condition, DCR may issue a Notice to Correct (NTC), Notice of Violation (NOV), Notice of Suspension (NOS), or Notice of Revocation (NOR). DCR may impose administrative penalties or order corrective actions pursuant to Subsection (b). DCR’s action does not preclude any other agency from taking its own enforcement action for violation of any local, state or federal law or regulation.

(b) Administrative Penalties and Corrective Actions.

1. Administrative Penalties. In addition to any of the remedies and penalties set forth in this article or any other law, DCR may impose administrative penalties on a Licensee using the violation classifications

in the Rules and Regulations and the fine amounts specified in Section 104.19. Repeat violations may result in escalation to a higher class of violation. DCR may use any legal remedy available to collect unpaid administrative penalties, including, but not limited to, civil action, injunctive relief, specific performance, and the recordation of a lien or tax assessment, or a notice of the administrative violation against real property pursuant to the procedures set forth in this Code and in accordance with applicable law. DCR shall also be entitled to recover all attorney’s fees and costs incurred to collect unpaid administrative penalties. (Amended by Ord. No. 188,451, Eff. 12/30/24.)

2. Reduction in Penalties or Extension of Time to Comply. DCR, in its sole discretion, may impose a reduced administrative penalty or consider an extension of time to comply with an NTC or NOV,

including the payment of any associated penalties, after considering the following factors: (1) the extent of harm or potential harm caused by the violation; (2) the nature and persistence of the violation; (3) the length of time over which the violation occurred; (4) the history of past violations; (5) any mitigating evidence; and (6) the Licensee’s financial resources.

3. More Restrictive License Conditions. In addition to any of the remedies and penalties set forth in this article or any other law, DCR, in its sole discretion, may impose more restrictive License conditions after considering the following factors: (1) the extent of harm or potential harm caused by the violation; (2) the nature and persistence of the violation; (3) the length of time over which the violation occurred; (4) the history of past violations; and (5) any mitigating evidence. 4. Corrective Action. In addition to any of the remedies and penalties set forth in this article or any other law, DCR may order a Licensee to undertake corrective action to remedy the violation or prevent future violations by issuing a NTC or NOV pursuant to Subsections (c) and (d).

(c) Notice to Correct (NTC).

1. DCR may issue a NTC if DCR discovers that a Licensee has made modifications without DCR’s prior approval, including but not limited to: (1) modifications to the fictitious name or DBA, or the failure to submit fictitious name or DBA; (2) modifications to Owners and/or Primary Personnel, or the failure to disclose all Owners and/or Primary Personnel; and (3) any other violation of the Rules and Regulations that DCR deems appropriate in its sole discretion. DCR shall issue a NTC by electronic mail to the Licensee. There is no administrative penalty associated with a NTC. The NTC shall contain all of the following:

   (i) a brief description of the unapproved modification or violation;

   (ii) a brief description of the corrective action required; and

   (iii) a timeframe in which the Licensee shall take corrective action.

   2. DCR may issue a NOV, including administrative penalties, if the Licensee does not comply with a NTC within 30 days. A Licensee may request an extension pursuant to Subsection (b).

(d) Notice of Violation (NOV).

1. DCR may issue a NOV for any violation of this article or the Rules and Regulations. DCR shall issue a NOV by electronic mail to the Licensee. The NOV shall contain all of the following:

   (i) a brief description of the violation;

   (ii) a brief description of, and rationale for, the administrative penalties and corrective action, if any, imposed;

   (iii) a timeframe in which the Licensee shall take corrective action and/or comply with the administrative penalties, if any, which shall not be sooner than 15 days from the date DCR sent the NOV by

   electronic mail; and

   (iv) information on how the Licensee may request an administrative hearing pursuant to Section 104.14.

2. The Licensee shall request any administrative hearing within 15 days of the date DCR sent the NOV by electronic mail. The NOV shall include an invoice for the relevant administrative appeal fee, pursuant to Section 104.19, which shall be due within 15 days from the date the invoice was issued.

3. If no appeal is requested, the NOV shall be final and effective 15 days after the date the NOV was sent by electronic mail to the Licensee. DCR shall issue an invoice for the associated administrative penalty or fine, if any, which shall be due 30 days from the date the invoice was issued.

4. If a hearing is requested, the determination issued by the hearing officer shall be final and effective on the date the determination is sent by electronic mail and U.S. mail to the Licensee. An invoice for outstanding penalties or fines, if any, shall be sent with the hearing officer’s determination and shall be paid within 30 days of the date the invoice was issued, unless otherwise specified in the hearing officer’s determination. Any corrective action required of the Licensee shall be completed within 30 days of the date that the final determination is sent to the Licensee, unless otherwise specified in the hearing officer’s determination.

   5. If, after a NOV becomes final and effective, a Licensee fails to comply with any administrative penalties and/or corrective action in the NOV, DCR may take one or more of the following actions: (1) denial of

   a License renewal; (2) imposition of more restrictive License conditions; (3) issuance of another or escalating NOV; or (4) suspension or revocation of a License or Operating Permit pursuant to Subsection (e).

   6. Stipulated Agreements. Prior to or after issuing a NOV, DCR, in its sole discretion, may enter into a written agreement with a Licensee whereby the Licensee stipulates to committing a violation in exchange

   for a negotiated administrative penalty or corrective action. DCR, in its sole discretion, may apply the Licensee’s payment of the Administrative Hearing Appeal Fee, or a $2,000 deposit paid pursuant to LAMC Section 104.14(c)(1), to offset the total penalty assessed in a stipulated agreement. If a Licensee violates a stipulated agreement, DCR may issue or re-issue a NOV and impose any administrative penalties authorized under this section or the Rules and Regulations. (Amended by Ord. No. 188,686, Eff. 9/11/25.)

(e) Suspension or Revocation of Temporary Approval, Annual License, or Operating Permit.

1. Notice of Suspension. In addition to any of the remedies and penalties set forth in this article or any other law, DCR may suspend Temporary Approval, an Annual License or an Operating Permit by issuing a

Notice of Suspension by electronic mail to the Licensee for the reasons listed in Section 104.04(e). The Licensee may request an administrative hearing pursuant to Section 104.14. DCR may reinstate the Temporary Approval, Operating Permit or Annual License if the Licensee completes any corrective action(s) to remedy the violation, or if a hearing officer orders reinstatement following an administrative hearing. DCR shall issue a Letter of Reinstatement if the Operating Permit or Temporary Approval is reinstated. (Amended by Ord. No. 188,451, Eff. 12/30/24.)

2. Notice of Revocation. In addition to any of the remedies and penalties set forth in this article or any other law, DCR may revoke Temporary Approval, an Annual License, or an Operating Permit by issuing a

Notice of Revocation by electronic mail to the Licensee after considering the following factors: (1) the extent of harm or potential harm caused by the violation; (2) the nature and persistence of the violation; (3) the length of time over which the violation occurred; (4) the history of past violations; and (5) any mitigating evidence. The Licensee may request an administrative hearing pursuant to Section 104.14. (Amended by Ord. No. 188,451, Eff. 12/30/24.)

3. A Licensee with a suspended or revoked Operating Permit or Temporary Approval may not conduct Commercial Cannabis Activity pending the outcome of the administrative hearing.

4. The revocation of an Annual License automatically revokes the associated Operating Permit.

(f) Administrative Hold. To prevent destruction of evidence, illegal diversion of Cannabis or a Cannabis product, or to address a potential threat to the environment or public safety, DCR may order an administrative hold of Cannabis or a Cannabis product. DCR shall send notice of administrative hold to the Licensee by electronic mail and shall provide a description of the Cannabis and/or Cannabis product subject to the administrative hold, along with a statement for the basis of issuing the administrative hold. Within 24 hours of receipt of the notice of administrative hold, the Licensee shall physically segregate all applicable Cannabis and/or Cannabis products subject to the hold and shall safeguard and preserve the subject property as required in the notice and the Rules and Regulations. Following the issuance of a notice of administrative hold, the Licensee shall identify the Cannabis and/or Cannabis product subject to the administrative hold in the State’s track-and-trace system. While the administrative hold is in effect, the Licensee is restricted from selling, donating, transferring, transporting, or destroying the administratively held property. Nothing herein shall prevent a Licensee from the continued possession, cultivation, or harvesting of Cannabis subject to the administrative hold. During the hold period, all Cannabis and/or Cannabis products subject to an administrative hold shall be put into separate batches. A Licensee may voluntarily surrender Cannabis and/or a Cannabis product that is subject to an administrative hold if identified in the State’s track-and-trace system. Voluntary surrender does not waive the right to an administrative hearing pursuant to Section 104.14 within 15 days of the date of mailing of the written notice by DCR.

(Amended by Ord. No. 187,095, Eff. 7/1/21.)

(a) A request for an administrative hearing may be filed for the following DCR actions: (Amended by Ord. No. 187,879, Eff. 6/2/23.)

1. Issuance of a NOV;

2. Denial of a renewal application for a License and/or a renewal of an Operating Permit;

3. Notice of an administrative hold;

4. Determination that an Applicant is not eligible under Sections 104.07 or 104.08; or

5. A Notice of Suspension or a Notice of Revocation pursuant to Section 104.04(e) and/or Section 104.13(e).

(b) For hearings authorized by Subsection (a)(5), the Licensee shall file a request for an administrative hearing within 5 days of the date the Notice of Suspension or Notice of Revocation was sent by electronic mail. A request for an administrative hearing is filed following the submission of all required and completed appeal information, forms, and documents, and the payment of all relevant appeal fee(s) under Section 104.19. An administrative hearing shall be held within 10 days of the Notice of Suspension or Notice of Revocation, unless the Licensee and DCR mutually agree to a later date. Pre-hearing disclosures pursuant to Subsection (e) shall be sent by simultaneous email service upon the other party, either DCR or the Licensee, and the hearing officer no later than two (2) days before the hearing. A Licensee shall not conduct Commercial Cannabis Activity pending the outcome of the administrative hearing. (Amended by Ord. No. 187,879, Eff. 6/2/23.)

(c) For hearings authorized by Subsections (a)(1) - (a)(4), the Licensee shall file a request for an administrative hearing within 30 days of the date the written decision being appealed was sent by electronic mail, unless a later date is provided in the notice. A request for an administrative hearing is filed following the submission of all required and completed appeal information, forms, and documents, and the payment of the Administrative Hearing Appeal Fee under LAMC Section 104.19, or deposit of the Administrative Hearing Appeal Fee pursuant to Subdivision 1. A Licensee may continue to conduct Commercial Cannabis Activity pending the hearing officer’s final determination. If DCR places an administrative hold on Cannabis and/or a Cannabis product, the hold shall remain in effect pending the outcome of the administrative hearing. (Amended by Ord. No. 188,686, Eff. 9/11/25.)

1. A Licensee may pay a $2,000 deposit of the Administrative Hearing Appeal Fee at the time the Licensee files a request for an administrative appeal hearing. The remaining unpaid portion of the

Administrative Hearing Appeal Fee shall be paid no later than 48 hours before the administrative appeal hearing date. If the Licensee fails to timely pay the remaining unpaid portion of the fee, the appeal will be deemed abandoned and the administrative appeal hearing shall be canceled. (Added by Ord. No. 188,686, Eff. 9/11/25.)

(d) DCR shall select a hearing officer and schedule an administrative hearing within 60 days of the date the request for an administrative hearing was filed. The time for holding a hearing may be extended by mutual agreement between DCR and the appellant. DCR shall send the notice of the hearing by electronic mail no later than 20 days prior to the date of the hearing. (Amended by Ord. No. 187,879, Eff. 6/2/23.)

(e) Pre-Hearing Disclosures. No later than seven calendar days prior to an administrative hearing, DCR and the appellant shall make the following pre-hearing disclosures to the hearing officer, with simultaneous email service upon the other party: (i) a brief statement of the facts and issues relating to the appeal; (ii) a copy of all documentary evidence to be offered at the hearing; and (iii) a list of all witnesses to be presented at the hearing. The hearing officer shall not issue any decision relating to the appeal before the hearing.

(f) DCR may promulgate Administrative Hearing Procedures concerning hearing processes and procedures. Administrative hearings shall be conducted as follows:

1. The hearing shall be recorded by an audio device provided by DCR. Any party to the hearing may, at its own expense, cause the hearing to be audio recorded and transcribed by a certified court reporter;

2. DCR shall have the burden of proof by the preponderance of the evidence;

3. The hearing officer may accept evidence on which persons would commonly rely in the conduct of their business affairs;

4. The hearing officer may continue the hearing and request additional relevant information from any party; and

5. For hearings pursuant to subsection (a)(1) - (a)(4), within 30 days of the conclusion of the hearing, the hearing officer shall issue a written decision that includes a statement of the factual and legal basis of the decision. For hearings pursuant to subsection (a)(5), within 72 hours of the conclusion of the hearing, the hearing officer shall issue a written decision that includes a statement of the factual and legal basis of the decision. The hearing officer shall use a de novo standard of review and may uphold or reject, in whole or in part, DCR’s action. The hearing officer may waive or reduce the administrative penalties in an NOV after considering the factors specified in 104.13(b). (Amended by Ord. No. 188,451, Eff. 12/30/24.)

6. The hearing officer’s determination shall be final and effective on the date it is sent by electronic mail and U.S. mail to the Applicant or Licensee. The issuance of a final determination from a hearing officer after an administrative appeal hearing exhausts administrative remedies. (Amended by Ord. No. 187,879, Eff. 6/2/23.)

(Amended by Ord. No. 185,629, Eff. 7/2/18.)

DCR shall administer the Rules and Regulations as adopted by the City Council. DCR may promulgate and enforce Rules and Regulations related to this article, which shall have the force and effect of law, and may be relied upon by Applicants, Licensees, or other parties to determine their rights and responsibilities. The Commission may recommend to the City Council or DCR amendments to the Rules and Regulations.

(Added by Ord. No. 185,343, Eff. 12/19/17.)

If any section, subsection, subdivision, clause, sentence, phrase or portion of this article is held unconstitutional or invalid or unenforceable by any court or tribunal of competent jurisdiction, the remaining sections, subsections, subdivisions, clauses, sentences, phrases or portions of this measure shall remain in full force and effect, and to this end the provisions of this article are severable. Notwithstanding anything to the contrary in the prior sentence, if any State or City licensure requirement is held unconstitutional or invalid or unenforceable by any court or tribunal of competent jurisdiction, the Commercial Cannabis Activity subject to such licensure requirement shall be prohibited in the City.

(Added by Ord. No. 185,343, Eff. 12/19/17.)

Neither this article, nor any other provision of this Code, or action, failure to act, statement, representation, recognition, certificate, approval, permit or License issued by the City, DCR, the Commission, or their respective representatives, agents, employees, attorneys or assigns, shall create, confer, or convey any vested or nonconforming right or benefit regarding any Commercial Cannabis Activity beyond the period of time and range of activities specifically provided by the licenses issued by the State of California and the City. This article does not create, confer, or convey any right or benefit regarding any activity beyond the lawfulness of any License issued by the City to engage in Commercial Cannabis Activity or any applicable State of California license for such activity. If any City License or any applicable State license is held unconstitutional, invalid or unenforceable for any reason by any court or tribunal of competent jurisdiction, the Commercial Cannabis Activity subject to such license shall be prohibited in the City of Los Angeles and all operations shall immediately cease in the City. The owner of any City License or any applicable State license assumes all risk associated with the validity of such licenses. The owner of any license found to be unconstitutional, invalid or unenforceable and required thereby to cease Commercial Cannabis Activity, shall not be entitled to any compensation from the City based upon such license; the finding that such license is unconstitutional, invalid or unenforceable; or the requirement that any Commercial Cannabis Activity must thereby immediately cease in the City.

(Amended by Ord. No. 188,686, Eff. 9/11/25.)

(a) Application and License Filing Fees. The following fees shall be payable pursuant to LAMC Sections 104.03, 104.06, 104.20 and any other applicable sections in accordance with the following schedule:

Type Fee Type Fee Legal Business Entity Record Review $2,084 Pre-Application Review (a) $462 Social Equity Individual Applicant Eligibility Verification (c) (LAMC Section 104.06.1) $1,256 Storefront Retailer Annual License (a)(d) $17,701 Non-Storefront Annual License – Primary Activity (a)(d) $14,378 Non-Storefront Annual License – Additional Activity (d) $11,435 EMMD Temporary Approval Application (b) (LAMC Section 104.07) $9,360 LAMC Section 104.08 Temporary Approval Application (b) (LAMC Section 104.08) $11,806 Social Equity Program Temporary Approval Application (b) (LAMC Section 104.06.1(b)) $8,059 Social Equity Program Temporary Approval Application (b) (Section 104.06.1(c) - (f)) $6,969 Cannabis Public Convenience or Necessity Filing Fee (b) $595

(a) Fee is charged per Application. (b) Fee is charged per Activity. (c) Fee is charged per Individual. (d) Fee includes the separate application fees required to process a Storefront Retailer Annual License. Additional fees may be assessed if document reviews or meetings must be repeated due to deficiencies in the application. A Non-Storefront Annual License – Additional Activity fee is assessed for each activity that is in addition to the primary activity.

(b) Renewal Fees. The following renewal fees shall be payable pursuant to LAMC Section 104.12 in accordance with the following schedule:

Type Fee Temporary Approval Renewal Fee (b) $6,294 License Renewal (b) $12,617 Record Renewal Fee (b) $2,719

(b) Fee is charged per Activity.

(c) Appeal Filing Fees. Appeal fees shall be payable pursuant to LAMC Sections 104.10 and 104.14 in accordance with the following schedule:

Type Fee Appeal to the Cannabis Regulation Commission (a) $5,793

Appeal to City Council (a) $5,793 Administrative Appeal Hearing $9,156

(a) Fee is charged per Application.

(d) Modification and Other Filing Fees. Modification fees pursuant to LAMC Section 104.03(c), and other fees due under various sections, including, but not limited to, LAMC Sections 104.06 and 104.20, shall be payable in accordance with the following schedule:

Type Fee Type Fee Business Diagram Modification Review (f) $4,421 Ownership Structure Modification Review (f) $2,084 Evidence of Legal Right to Occupy Document Review (f)(g) $232 Business Premises Diagram Document Review (f)(g) $163 Business Formation and Organization Document Review (f)(g) $788 Indemnification Agreement Document Review (f)(g) $100 Certificate of Occupancy Document Review (f)(g) $466 Legal Business Entity Disclosure Form Review (a) $1,296 Equity Share Documents / Social Equity Agreement Review (f)(g) $1,852 Initial Inspection (i)(j) $519 Final / Compliance Inspection (h) $4,027 Off-Hours Final / Compliance Inspection (h) $6,040 Annual License Application Review (b) $11,435 Community Meeting (a)(j) $536 Written Notice (a)(j) $463 Mailed Notice (a)(j) $926 Printed Notice (a)(j) $463 Categorical Exemption (a)(j) $2,133 Cannabis Regulation Commission Hearing (a)(j) $1,018 Publication Fee (a)(e)(j) $727 plus Actual Cost Environmental Analysis Review Services (a)(e)(k) $1,024 plus Actual Cost Extraordinary Projects or Services (e) Actual Cost Expedited Services (Time and a Half Rate) 150% of regular fee Expedited Services (Double Time Rate) 200% of regular fee

(a) Fee is charged per Application. (b) Fee is charged per Activity. (e) Fee is based on the actual cost. DCR shall calculate actual costs and charge the final fee in accordance with LAMC Section 104.19(f). (f) Fee is charged per modification request by the Applicant. (g) Fee is charged for additional document review when required by DCR to assess compliance. (h) Fee is charged per inspection trip. If DCR determines that, in addition to the routine inspections performed pursuant to this article or the Rules and Regulations, additional inspections or abatement actions are required to process an application or enforce compliance with this article or the Rules and Regulations, the Applicant or Licensee shall pay separate fees for each inspection. (i) Fee is charged pursuant to LAMC Section 104.05 (Temporary Approval). (j) Fee is charged for additional document reviews or services performed by DCR beyond the routine reviews and activities required during the course of Application review. (k) If an Applicant is permitted to submit an Annual License Application without environmental documents, this fee is charged pursuant to LAMC Sections 104.03(c) or 104.06(d) for the processing of an initial study prepared or filed in connection with an Application, or for the processing of any supplemental report or for the preparation of a general exemption pursuant to the City’s California Environmental Quality Act Guidelines.

(e) Fines, Violations, and Non-Compliance Fees. Fines, violations, and non-compliance fees shall be payable pursuant to LAMC Section 104.13 and the Rules and Regulations in accordance with the following schedule:

Type Fee Type Fee Cannabis Code Violation Inspection (h) $749 Cannabis Code Violation Inspection (Off- Hours) (h) $1,124 Cannabis License Non-Compliance Inspection Fee (h) $1,450 Cannabis License Non-Compliance Inspection (Off- Hours) (h) $2,175 Cannabis License Violation Fine – Low Violation (l) $3,000 Cannabis License Violation Fine – Minor Violation (l) $6,000 Cannabis License Violation Fine – Moderate Violation (l) $11,000 Cannabis License Violation Fine – Major Violation (l) $23,000 Cannabis License Violation Fine – Severe Violation (l) $34,000

(h) Fee is charged per inspection trip. If DCR determines that, in addition to the routine inspections performed pursuant to this article or the Rules and Regulations, additional inspections or abatement actions are required to process an application or enforce compliance with this article or the Rules and Regulations, the Applicant or Licensee shall pay separate fees for each inspection. (l) Fine is charged per violation, pursuant to the Rules and Regulations.

(f) Actual Cost. In addition to the fees expressly set forth in this article, DCR may charge an Applicant or Licensee for full or partial reimbursement of the actual costs associated with the City’s processing of

applications, licenses, or related services which requires another City department, a City contractor, or unusually heavy commitments of DCR resources.

1. Actual cost may be charged for Commercial Cannabis Activity services not expressly enumerated in this article provided DCR and the Applicant or Licensee agree upon:

   A. The processing services required, including environmental reviews, and the personnel, time and physical resources which the City will need to accomplish those processing services; and

   B. The costs which are to be funded shall consist of the actual costs to the City which include, but are not limited to: wages, including overtime, retirement, compensated time off and other benefits, bureau / divisional overhead, departmental overhead and general City overhead, which are incurred in connection with the employees assigned to perform the processing services for the major project, the direct costs of material and equipment required to furnish the processing services, the reasonable out-of-pocket expenses incurred by any employee assigned to furnish the processing services, and the cost of hiring outside consultants necessary to provide the City with special expertise.

2. The Applicant or Licensee shall deposit funds into the Cannabis Regulation Special Revenue Trust Fund based on the estimated costs of providing the processing services.

3. DCR shall promptly advise the Applicant or Licensee if, at any time during the processing period, DCR believes that the costs of accomplishing the processing services will exceed the estimated costs. DCR

and the Applicant or Licensee shall agree to a processing service agreement that details the procedure for the deposit of additional funds if the funds deposited are not adequate to fund the agreed upon processing services.

4. DCR shall maintain appropriate records of the actual costs of the processing services, prepare a report for the Applicant or Licensee upon completion of processing services, and refund any unused portion of

the deposit to the Applicant or Licensee.

5. Entering into a processing service agreement is voluntary.

(g) Filing Fee Credit. At DCR’s sole discretion, an Applicant or Licensee may be allowed credit for fees already paid when DCR determines that the Applicant or Licensee made a good-faith attempt to file the application, modification request, or other request for service properly and that the process could be more appropriately handled if filed under a different procedure. This subdivision shall not be construed to allow credit to be given at the Applicant or Licensee’s option, nor to allow refunds of any fees paid on the original application or request for service.

(Amended by Ord. No. 186,703, Eff. 7/10/20.)

(a) Social Equity Individual Applicant (SEIA) Requirements. (Amended by Ord. No. 188,451, Eff. 12/30/24.)

1. 2019 SEIA Criteria. Except for Tier 3 Applicants, as defined in Section 104.20(a)(1)(A), an Applicant that submitted an Application subject to Section 104.08 by September 13, 2018, or submitted an

application for program eligibility verification during the verification period between May 28, 2019, and July 29, 2019, or met the criteria in this subsection for a Commercial Cannabis Activity License pursuant to Section 104.06.1(b).

(i) SEIA – Individual Eligibility Verification. An individual subject to this subsection shall be verified as a Social Equity Individual Applicant. A Social Equity Individual Applicant may be further

verified as a Tier 1 Social Equity Individual Applicant, Tier 2 Social Equity Individual Applicant, or a Tier 3 Applicant in accordance with the definitions and criteria in this subsection.

(ii) The following definitions shall apply in this subsection:

(1) “California Cannabis Arrest or Conviction” means an arrest or conviction in California for any crime under the laws of the State of California or the United States relating to the sale,

possession, use, manufacture, or cultivation of Cannabis that occurred prior to November 8, 2016. An arrest, prosecution or conviction for a violation of Proposition D, as codified in former Article 5.1 of Chapter IV of the Los Angeles Municipal Code, notwithstanding that Proposition D has been repealed, is not a California Arrest or Cannabis Conviction. A Social Equity Applicant with a California Cannabis Arrest or Conviction shall be ineligible to apply for a License in any of the circumstances specified in Section 104.04(c) and (d), subject to the time restrictions therein.

(2) “Disproportionately Impacted Area” means eligible zip codes based on the “More Inclusive Option” as described on page 23 of the “Cannabis Social Equity Analysis Report” commissioned

by the City in 2017, and referenced in Regulation No. 8 of the Rules and Regulations, or as established using the same methodology and criteria in a similar analysis provided by an Applicant for an area outside of the City.

(3) “Low Income” means 80 percent or below of Area Median Income for the City based on the 2016 American Community Survey and updated with each decennial census.

(4) “Tier 1 Social Equity Individual Applicant” is an individual who meets the following criteria at the time of applying for a license: (1) Low Income and prior California Cannabis Arrest or

Conviction; or (2) Low Income and a minimum of five years’ cumulative residency in a Disproportionately Impacted Area.

(5) “Tier 2 Social Equity Individual Applicant” is an individual who meets the following criteria at time of applying for a license: (1) Low Income and a minimum of five years’ cumulative residency in a Disproportionately Impacted Area; or (2) a minimum of 10 years’ cumulative residency in a Disproportionately Impacted Area.

(6) “Tier 3 Applicant” is a Person who applied for a Commercial Cannabis Activity License under Section 104.08 and does not meet the criteria of a Tier 1 Social Equity Individual Applicant or
Tier 2 Social Equity Individual Applicant.

2. 2022 SEIA Criteria. An individual subject to this subsection shall be verified as a Social Equity Individual Applicant in accordance with the definitions and criteria in this subsection.

(i) “Social Equity Individual Applicant” means an individual who meets two of the following three criteria: (1) Low Income; (2) a prior California Cannabis Arrest or Conviction; (3) ten years’
cumulative residency in a Disproportionately Impacted Area. For the purposes of Section 104.06.1(c), “Social Equity Individual Applicant” means 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.

(ii) The following definitions shall apply in this subsection:

(1) “Asset” means net assets at or below four times the Low Income thresholds based on Household Size. Examples of liquid accounts that shall be disclosed include but are not limited to, saving
accounts, checking accounts, certificates of deposit, money market accounts, stocks, trusts, and gifts. Qualified retirement accounts and an applicant’s primary residence shall be excluded for
purposes of the calculation, but other forms of real estate shall be included. Such retirement accounts are limited to accounts that are intended for retirement and that would incur a penalty if
withdrawn before a specified retirement age per each account.

(2) “Household Size” means the number of individuals that meet any of the following criteria:

(A) All spouses or domestic partners must be included in the household and must appear in the submission content.

(B) All household members who are under 18 years of age must be the legal dependent of an adult household member, except in the case of emancipated minors, as claimed on the most
recent income tax return, or legal minor children of title holders. All household members who are under 18 years of age must be the legal dependent or emancipated minor of an adult
household member, as claimed on the most recent income tax return.

(C) Pregnant Applicants will be counted as two household members only with verifiable medical documentation.

(D) Temporarily absent household members who intend to live in the residence upon return may be considered, if verifiable documentation supporting their absence is provided. Such household members include, but are not limited to, household members serving temporarily in the armed forces, or who are temporarily institutionalized.

(E) Neither live-in assistants nor foster children will be counted toward Household Size. Individuals not listed on the Social Equity Individual Applicant's most recent tax return, such as elderly relatives, live-in assistants, and foster children will not be counted toward Household Size.

(3) “California Cannabis Arrest or Conviction” means an arrest or conviction in California for any crime under the laws of the State of California or the United States relating to the sale,

possession, use, manufacture, or cultivation of Cannabis that occurred prior to November 8, 2016. An arrest, prosecution or conviction for a violation of Proposition D, as codified in former Article 5.1 of Chapter IV of the Los Angeles Municipal Code, notwithstanding that Proposition D has been repealed, is not a California Arrest or Cannabis Conviction. A Social Equity Applicant with a California Cannabis Arrest or Conviction shall be ineligible to apply for a License in any of the circumstances specified in Section 104.04(c) and (d), subject to the time restrictions therein.

(4) “Disproportionately Impacted Area” means Police Reporting Districts as established in the Expanded Social Equity Analysis, or as established using the same methodology and criteria in a similar analysis provided by an Applicant for an area outside of the City.

(5) “Low Income” means both of the following definitions are met: (1) the Social Equity Individual Applicant meets the low-income thresholds established in the annual U.S. Department of

Housing and Urban Development (HUD) income limits based upon the Area Median Income (AMI) for Los Angeles County based on household size; and (2) the Social Equity Individual Applicant does not have Assets in excess of the amount as defined in this subsection. For the purpose of assessing whether the low-income threshold has been met, DCR shall calculate the Household Size based on the criteria in Subsection (a)(2)(ii)(2).

3. 2025 SEIA Criteria. An individual subject to this subsection shall be verified as a Social Equity Individual Applicant in accordance with the definitions and criteria in this subsection.

   (i) “Social Equity Individual Applicant” means an individual who meets the following two criteria: (1) Low Income; and (2) a prior Cannabis Arrest or Conviction.

   (ii) The following definitions shall apply in this subsection:

(1) “Cannabis Arrest or Conviction” means an arrest or conviction for any crime under the laws of any State, any of its political subdivisions, or the United States, relating to the sale, possession, use, manufacture, or cultivation of Cannabis. An arrest, prosecution or conviction for a violation of Proposition D, as codified in former Article 5.1 of Chapter IV of the Los Angeles Municipal Code, notwithstanding that Proposition D has been repealed, is not a Cannabis Arrest or Conviction. A Social Equity Applicant with a Cannabis Arrest or Conviction shall be ineligible to apply for a License in any of the circumstances specified in Section 104.04(c) and (d), subject to the time restrictions therein.

(2) “Low Income” means both of the following definitions are met: (1) the Social Equity Individual Applicant meets the low-income thresholds established in the annual U.S. Department of

Housing and Urban Development (HUD) income limits based upon the Area Median Income (AMI) for the county in which the Person resides or which is closest to the Person’s home address; and (2) the Social Equity Individual Applicant does not have Assets in excess of the amount as defined in Subsection (a)(2)(ii)(1). For the purpose of assessing whether the low-income threshold has been met, DCR shall calculate the Household Size based on the criteria in Subsection (a)(2)(ii)(2).

(b) Social Equity Applicant Requirements. (Amended by Ord. No. 188,451, Eff. 12/30/24.)

1. Social Equity Applicant – Entity Eligibility Verification. An Applicant shall comply with the Equity Share criteria in this subdivision before a License is issued or renewed. Upon a Social Equity

Applicant's request, DCR may conduct an Equity Share review under this subsection for the Applicant entity prior to the filing of a complete Application, subject to the payment of the Equity Share Documents / Social Equity Agreement Review Fee pursuant to Section 104.19. This Equity Share review may replace the required Equity Share review during the Application process, provided that the Social Equity Applicant attests that there are no changes to ownership since the original Equity Share review was conducted and that there are no additional or new agreements that were not previously disclosed to DCR during the original Equity Share review. DCR may conduct a new Equity Share review if there are changes to ownership, operating agreements, bylaws, or other agreements or material facts related to compliance with this subsection that were not disclosed during the original review.

(i) Ownership Percentage. One or more Social Equity Individual Applicants shall own no less than an aggregate 51% Equity Share in the Person to whom the License is issued. A sufficient number of

Social Equity Individual Applicants, individually or through an entity, shall be disclosed to evidence that the owner(s) of the Applicant or Licensee meets the aggregate 51% Equity Share requirement. Social Equity Individual Applicants with less than a 20% aggregate ownership stake or equity interest in the Applicant or Licensee may be included in the aggregate total. Aggregate means the total ownership interest held individually or through an entity. For example, an individual owning 50% of an entity that owns 50% of a Licensee has a 25% aggregate ownership interest in the Licensee.

(ii) “Equity Share” means all of the following:

(1) Unconditional ownership of the Equity Share. The Equity Share shall not be subject to conditions precedent, conditions subsequent, executory agreements, voting trusts, restrictions on or

assignments of voting.

(2) Profits, dividends, and distributions. Social Equity Individual Applicants shall receive all of the following:

(A) At least their Equity Share percent of the distribution of profits paid to the owners of the Social Equity Applicant or Licensee;

(B) 100 percent of the value of each share of stock, member interest, partnership interest, or other equivalent owned by them in the event that the stock, member interest, or partnership interest is sold; and

(C) At least their Equity Share percent of the retained earnings of the Social Equity Applicant or Licensee and 100 percent of the unencumbered value of each share of stock, member interest, or partnership interest owned in the event of dissolution of the corporation, limited liability company, or partnership.

(3) Voting rights and control. Social Equity Individual Applicants shall receive the following at all times:

(A) At least their Equity Share percent of the voting rights on all business decisions, including, but not limited to, long-term decisions, daily business operations, retention and supervision of the executive team, managers, and management companies, and the implementation of policies.

(B) The highest officer position in the Social Equity Applicant or Licensee, such as the position of chief executive officer, unless another natural person is appointed to that position by mutual agreement of the parties.

(4) Successors. The Equity Share shall not be subject to arrangements causing or potentially causing ownership benefits in the Social Equity Applicant or Licensee to go to another in any
circumstance other than after death or incapacity. In the case of death or incapacity, a Social Equity Individual Applicant shall identify a natural person(s) as the Social Equity Individual Applicant's
own successor in interest or assignee of their Equity Share. If a Social Equity Individual Applicant dies, the Social Equity Applicant or Licensee will continue to qualify under this Section with the
requisite Equity Shares so long as the successor in interest of the deceased Social Equity Individual Applicant inherits or otherwise acquires all of such individual’s ownership interest in the Social
Equity Applicant or Licensee. The natural person(s) may subsequently identify an entity, such as a trust, to hold the interest. Upon the death of the Social Equity Individual Applicant or Licensee, the
Social Equity Applicant shall notify DCR within 30 days of their death. The Social Equity Applicant shall provide a certified copy of the death certificate and update the contact information on file
with DCR within 60 days of the death.

(iii) Additional Equity Share Requirements.

(1) All Owners shall: (1) comply in all respects with the Equity Share criteria and requirements in this section (“Equity Share Requirements”) in dealings with one another; (2) keep records
evidencing their compliance; and (3) on the other party’s reasonable request, provide these records of compliance to the other party.

(2) Any action or inaction taken by a party in violation of the Equity Share Requirements shall entitle the other party to initiate a legal action in the Superior Court of Los Angeles, including, but
not limited to, an action for specific performance, declaratory relief, or injunctive relief, to enforce the Equity Share Requirements against the other party.

(3) Any annual License(s) issued to a Social Equity Applicant may be suspended or revoked, or a License renewal denied, if it can be shown, by a preponderance of the evidence, that any
provision in an operating agreement, contract, business formation document, or any other agreement between Owners of the Social Equity Applicant violates any of the Equity Share Requirements
and is not cured within the time allotted by DCR.

(4) All Owners are required to incorporate the following addendum into operating agreement documents to evidence compliance with Equity Share Requirements: “To the extent that any
provision of this agreement, or part thereof, is or may be construed to be inconsistent with or in violation of the “Equity Share” requirements set forth in Los Angeles Municipal Code section 104.20,
such provision(s) shall be ineffective, unenforceable, and null and void.”

(c) Programming – Benefits and Requirements.

1. Programming – Ownership and Disclosure Requirements. Social Equity Applicants shall comply with the requirements in this subsection and in the Rules and Regulations.

   (i) Social Equity Applicants may only transfer control or ownership to Persons who meet the same Equity Share requirements, and only upon the prior written approval of DCR. DCR shall promulgate

   Rules and Regulations for the transfer of control or ownership.

   (ii) Social Equity Applicants shall provide to DCR bylaws or operating agreements which specify the percentage of ownership and control by each Person.

   (iii) Social Equity Applicants shall disclose to DCR any management or employee staffing agreements it has or will enter into during the period of the License.

   (iv) Social Equity Applicants shall disclose any options to purchase equity or control in the Social Equity Applicant.

   (v) At the time of requesting an annual license renewal pursuant to Section 104.12, Social Equity Applicants shall provide to DCR a financial statement for its most recently completed fiscal year.

   (vi) On or before March 1 of each year, Licensees subject to Section 104.20 shall submit to DCR an annual “Equity Report” signed by all Owners that describes the business plan guidance, services,

   consulting, training, and/or other technical assistance that encourages and supports the establishment and growth of the Social Equity Licensee, and the estimated dollar value of those services, that were provided by the Owners to the Social Equity Individual Applicant Owner during the past calendar year. As part of the Equity Report, all Owners must execute an affidavit under penalty of perjury confirming compliance with all requirements set forth in Section 104.20, and acknowledging the requirements to disclose agreements about the management, control or direction of the licensed entity, profits, and/or loans. (Added by Ord. No. 187,459, Eff. 4/15/22.)

2. Programming – Workforce Require- ments. Social Equity Applicants and Tier 3 Applicants shall comply with the workforce requirements in this subdivision.

   (i) Definitions.

   (1) “Social Equity Worker” means an individual who meets the criteria in Section 104.20(a), except for Tier 3 Applicants, or who meet the criteria in Section 104.20(b).

   (2) “Transitional Worker” means an individual who, at the time of starting employment at the Business Premises, resides in an Economically Disadvantaged Area or Extremely Economically

   Disadvantaged Area, as those terms are defined in Section 11.5.6 of this Code, and faces at least two of the following barriers to employment: (1) being homeless; (2) being a custodial single parent; (3) receiving public assistance; (4) lacking a GED or high school diploma; (5) having a criminal record or other involvement with the criminal justice system; (6) suffering from chronic unemployment; (7) emancipated from the foster care system; (8) being a veteran; or (9) over the age of 65 and financially compromised.

   (ii) Social Equity Applicants. A Social Equity Individual Applicant shall make a good faith effort to have no less than 50 percent of the weekly hours of the Licensee’s workforce performed by

   Employees whose primary place of residence is within a 3-mile radius of the Business Premises location. Of those Employees, 20 percent shall be Social Equity Workers and 10 percent shall be Transitional Workers.

   (iii) Tier 3 Applicants. A Tier 3 Applicant shall make a good faith effort to have no less than 50% of the weekly hours of the Licensee’s workforce performed by employees whose primary place of

   residence is within a 3-mile radius of the Business Premises. Of those employees, 30% shall be Social Equity Workers and 10% Transitional Workers. At a minimum, a Licensee is required to contact local community-based organizations, City of Los Angeles Work Source Centers, and other similar organizations to facilitate job outreach, development, and placement services. A Licensee is required to provide a detailed annual report no later than the last day of February that provides evidence of its outreach efforts, including the number of persons interviewed, and details on who was hired to satisfy the good faith requirement. (Amended by Ord. No. 187,879, Eff. 6/2/23.)

3. Programming – Social Equity Agreement Requirements. Tier 3 Applicants shall comply with the requirements in this subsection.

(i) Prior to the issuance of a License, a Tier 3 Applicant shall enter into a Social Equity Agreement with the City to provide to a Social Equity Individual Applicant for a period of three years: (1) Ancillary Business Costs; (2) Property; and (3) Education and Training. Social Equity Agreements shall be processed and approved by DCR.

(1) Ancillary Business Costs. Tier 3 Applicants shall provide security, management, equipment and other ancillary business costs to a Social Equity Individual Applicant.

(2) Education and Training. Tier 3 Applicants shall provide a minimum of 50 hours per year in business development education and training to a Social Equity Individual Applicant. Education

and Training provided by Tier 3 Applicants may include: accounting, inventory management, payroll practices, tax preparation, employee recruitment, retention and workforce outreach, or reporting requirements training.

(3) Property – Onsite. Tier 3 Applicants shall provide floor area, at no cost and inclusive of utilities, within their Business Premises location, or at an off-site location, pursuant to Subsection (c) (3)(i)(4), established as a separate Business Premises for a Social Equity Individual Applicant, for a period of three years to engage in a Commercial Cannabis Activity in accordance with Article 5,

Chapter X of this Code. The minimum requirements of the floor area provided shall be: (1) Cultivation - minimum 500 square feet or 10 percent of Tier 3 Applicant’s entire Business Premises, whichever is greater; (2) Manufacturing - minimum 800 square feet or 10 percent of Tier 3 Applicant’s entire Business Premises, whichever is greater; (3) Testing - minimum 1,000 square feet or 10 percent of Tier 3 Applicant’s entire Business Premises, whichever is greater; (4) Distributor - minimum 1,000 square feet or 10 percent of Tier 3 Applicant’s entire Business Premises, whichever is greater; (5) Non-storefront retail - minimum 1,000 square feet or 10 percent of Tier 3 Applicant’s entire Business Premises, whichever is greater; (6) Storefront retail - minimum 1,000 square feet or 10 percent of Tier 3 Applicant’s entire Business Premises, whichever is greater.

(4) Property – Off-site. A Tier 3 Applicant shall provide floor area meeting the minimum requirements under Subsection 104.20(c)(3)(i)(3), at no cost and inclusive of utilities, to a Social Equity

Individual Applicant at a different off-site Business Premises location in the City, unless property is provided on-site as specified in this section, subject to the following conditions:

(A) The Social Equity Individual Applicant can conduct the Commercial Cannabis Activity for its License type at the off-site location without violating any of the land use or sensitive use requirements in Article 5, Chapter X of this Code.

(B) A Tier 3 Applicant shall be responsible for all costs to bring the off-site location into compliance with all site specific and property related regulations, including, but not limited to, Building Code and Fire Code regulations.

(C) The Social Equity Individual Applicant has the legal right to occupy and use the new location for Commercial Cannabis Activity.

(D) DCR finds that the facilities at the off-site location are substantially similar to the facilities at the Tier 3 Applicant’s Business Premises.

(5) Property Support. In lieu of providing the minimum property requirements in Subsections (c)(3)(i)(3) and (4), a Tier 3 Applicant may provide property support directly to the Social Equity

Individual Applicant equal to the greater of the following:

(A) The actual monthly cost per square foot of leased space at the Tier 3 Applicant’s Business Premises multiplied by the amount of space required by this subsection multiplied by 36

months; or

(B) The arithmetic mean of the cost per square foot of leased space for a total of 10 commercial cannabis businesses within a one mile radius, and authorized by DCR for the same

Commercial Cannabis Activity, of the Tier 3 Social Equity Applicant’s Business Premises multiplied by the amount of space required by this subsection multiplied by 36 months. If there are less than 10 commercial cannabis businesses within the one mile radius, the radius shall be increased in 100-foot increments until a total of 10 businesses are included.

(6) A Tier 3 Applicant shall provide property support directly to the Social Equity Individual Applicant in one of the following manners: (1) in full upon the first effective day of the Social Equity

Agreement; (2) in three equal payments on dates determined by DCR within the first 24 months of the term of the Social Equity Agreement; (3) in 36 equal monthly payments during the term of the Social Equity Agreement; or (4) as agreed upon by the Social Equity Individual Applicant and the Tier 3 Applicant, and approved by DCR.

4. Programming – Benefits. Social Equity Applicants verified in accordance with Subsections (a) and (b) may receive benefits outlined in this subsection. Tier 3 Applicants shall not be processed under this

subsection but shall be afforded priority processing as described in Section 104.08.

(i) Processing.

(1) DCR shall process Applications for Social Equity Applicants in accordance with Section 104.06.1.

(2) DCR shall provide priority processing to Social Equity Applicants applying for a Non-Retailer License on a 1:1 ratio with all non-Social Equity Individual Applicants.

(3) DCR shall process Applications or renewals from Social Equity Applicants in accordance with Subsections (a) or (b) before processing an Application or renewal from non-Social Equity Applicants.

(ii) Fee Deferral Program. DCR shall administer the Fee Deferral Program based on requirements and restrictions established in the Rules and Regulations. Participation in the Fee Deferral Program

may be subject to the availability of resources.

(iii) Business, Licensing and Compliance Assistance. DCR shall provide Business, Licensing and Compliance Assistance through programming and curriculum development and training in the areas of

state and local licensing requirements, commercial cannabis regulations, general business development, cannabis-specific business development and workforce development.

(iv) Financial Grant Program. DCR shall administer the Financial Grant Program based on requirements and restrictions established in the Rules and Regulations. Participation in this Financial Grant

Program may be subject to the availability of resources.

(v) Ancillary Business Costs. Social Equity Applicants may receive security, management, equipment and other ancillary business costs provided by a Tier 3 Applicant pursuant to a Social Equity

Agreement as defined in Section 104.20(c)(3). Participation may be subject to the availability of resources.

(vi) Education and Training. Social Equity Applicants may receive a minimum of 50 hours per year in business development, education and training provided by a Tier 3 Applicant pursuant to a Social

Equity Agreement as defined in Section 104.20(c)(3). Education and training provided by Tier 3 Applicants may include: accounting, inventory management, payroll practices, tax preparation, employee recruitment, retention and workforce outreach, and reporting requirements training. Participation may be subject to the availability of resources.

(vii) Property. Social Equity Applicants may receive Property as specified in Section 104.20(c)(3) provided by a Tier 3 Applicant. Participation may be subject to the availability of resources.

(Amended by Ord. No. 186,703, Eff. 7/10/20.)

(a) A Licensee shall provide to DCR a copy of all written agreements and contracts, including all amendments thereto, with every Management Company that manages Commercial Cannabis Activity on its behalf and all other information and documents DCR requires to determine the nature and scope of a Management Company’s participation in Commercial Cannabis Activity.

(b) DCR may prohibit a Licensee from permitting a Management Company to manage Commercial Cannabis Activity on the Licensee’s behalf if:

1. Any Owner of the Management Company would be ineligible to apply for a License pursuant to Section 104.03(a) or to receive a License pursuant to Section 104.06(a)(1);

2. DCR or another Cannabis licensing authority has determined that the Management Company has failed to comply with State or City operating requirements while managing Commercial Cannabis Activity; or

3. The Management Company cannot manage Commercial Cannabis Activity on behalf of any additional Licensees pursuant to the restrictions set forth in Section 104.21(f).

(c) Every Management Company shall register with DCR pursuant to procedures established by DCR and provide DCR all requested information and documents regarding its participation in Commercial Cannabis Activity in the City.

(d) A Management Company shall not hold an equity interest in a Licensee on whose behalf it manages Commercial Cannabis Activity. Notwithstanding the foregoing restriction, a Management Company may receive a share of a Licensee’s revenues or profits in exchange for management services rendered, subject to limitations established by DCR.

(e) A Management Company shall manage Commercial Cannabis Activity on a Licensee’s behalf in adherence to the operational requirements in this article and the Rules and Regulations that apply to the License type. In construing and enforcing this article and the Rules and Regulations, any act, omission, or failure of a Management Company, including its officers, Employees and agents, shall in every case be deemed the act, omission, or failure of the Licensee.

(f) Every Management Company shall be subject to the following restrictions:

1. Through June 30, 2019, a Management Company shall not manage Commercial Cannabis Activity on behalf of more than three percent of the Licensees in the City engaged in the same type of Commercial

Cannabis Activity;

2. From July 1, 2019, through June 30, 2020, a Management Company shall not manage Commercial Cannabis Activity on behalf of more than four percent of the Licensees in the City engaged in the same type

of Commercial Cannabis Activity;

3. From July 1, 2020, through June 30, 2021, a Management Company shall not manage Commercial Cannabis Activity on behalf of more than five percent of the Licensees in the City engaged in the same type

of Commercial Cannabis Activity;

4. From July 1, 2021, through June 30, 2022, a Management Company shall not manage Commercial Cannabis Activity on behalf of more than six percent of the Licensees in the City engaged in the same type of Commercial Cannabis Activity; and

   5. On or after July 1, 2022, a Management Company shall not manage Commercial Cannabis Activity on behalf of more than seven percent of the Licensees in the City engaged in the same type of Commercial

   Cannabis Activity.

(Amended by Ord. No. 186,703, Eff. 7/10/20.)

(a) DCR shall develop criteria and guidelines for Cannabis Corporate Responsibility Reports (Report). DCR shall post the criteria, guidelines and any amendments on its website.

(b) Prior to the issuance of a License or renewal pursuant to Section 104.12, a Licensee shall submit to DCR a Report that describes the Licensee’s community engagement, corporate philanthropy, relationship with the neighborhood surrounding the Licensee’s Business Premises, and compliance with applicable City and State Cannabis laws and regulations within the previous calendar year. If a Licensee fails to timely submit a Report, DCR may impose administrative penalties or order corrective action as provided in Section 104.13(b). Reports may be publicly disclosed, including but not limited to posting on DCR’s website.

(c) If a Licensee holds Licenses for multiple Business Premises, the Licensee shall submit a separate Report for each Business Premises.

(Amended by Ord. No. 187,562, Eff. 7/6/22.)

(a) Purpose.

1. Unlicensed cannabis businesses threaten the health and safety of cannabis consumers by selling products that are cultivated, manufactured, prepared, and processed outside of the regulated cannabis
marketplace. These products are tainted, contaminated, mislabeled, unlabeled, or misbranded, and may cause serious injury or illness if consumed. Unlicensed and unregulated cannabis stores harm the peace,
comfort, and welfare of communities and people who live and work nearby. These stores are more likely to operate outside of proscribed hours of operation without meeting locational and operational standards,
and are more likely to sell cannabis in quantities that exceed legal limits and sell cannabis to minors in violation of applicable law.

2. Cannabis consumers must be informed whether a retail cannabis business is unlicensed before having to enter the premises and must understand the health risks and consequences of shopping at an unlicensed
cannabis business. This knowledge and understanding empowers consumers to make smart choices to protect their health and safety. Communities will also benefit from a reduction in the number of unlicensed
cannabis stores.

3. The Emblem Program for Authorized Cannabis Stores (Program) is administered by the County of Los Angeles in partnership with cities within the County of Los Angeles as a cross-jurisdictional effort to
deter the operation of unlicensed cannabis businesses. The Program is intended to protect consumers and stop harmful effects caused by unlicensed and unregulated cannabis businesses on local neighborhoods and
communities by requiring retail cannabis businesses that have received all appropriate licenses, permits, or authorizations from the State of California and local governments to both display a unique emblem on the
Business Premises so that it is highly visible to the public from the exterior of the store.

4. The Program is not intended to promote the use, possession, distribution, manufacturing, sale, or cultivation of cannabis or cannabis products, or to engage in any actions that conflict with any applicable local,
state, or federal laws.

(b) Definitions.

1. “Authorized Cannabis Store” means a Licensee engaged in onsite retail sales of medical or adult-use cannabis to customers at a Business Premises location, provided:

   (i) The Licensee has obtained a Type 10 (Retailer) or Type 12 (Microbusiness) License or Temporary Approval from the City, and a license or provisional license from the State of California for the same

   activity or activities;

   (ii) The Licensee has obtained all licenses, permits, or authorizations required by the City and any other local agencies necessary to allow the business to engage in the sale of medical or adult-use

   cannabis; and

(iii) The Licensee keeps all applicable licenses, permits, or authorizations current and valid, and remains in good standing to engage in the sale of medical or adult-use cannabis in the City.

2. “Emblem” means the emblem featured on the Emblem Placard issued to an Authorized Cannabis Store by the Program Administrator as part of the Program.

3. “Emblem Placard” means a placard displaying the Emblem and other required information issued to an Authorized Cannabis Store by the Program Administrator as part of the Program that notifies the

public that the store has received all required state and local licenses, permits, or other authorizations to become an Authorized Cannabis Store.

4. “Health Information Advisory” means the pamphlet, paper, or other media provided to the Authorized Cannabis Store by the Program Administrator that contains health information messages, regarding cannabis use and its potential health impacts, created by the Department of Public Health.

5. “Program” means the Emblem Program for Authorized Cannabis Stores.

6. “Program Administrator” means the Director of the Los Angeles County Department of Public Health, or the Director’s designee.

(c) Emblem – Significance. The Emblem, when displayed on the Emblem Placard shall serve as notice to the public that the commercial cannabis business to which the Emblem Placard was issued is an Authorized Cannabis Store at the time of issuance and is in compliance with all applicable public health laws and regulations as determined during the most recent Public Health inspection. The Emblem and Emblem Placard shall not grant any rights or remedies, and shall not be construed as granting any rights or remedies, to any person or entity in possession of the Emblem or Emblem Placard. The Emblem and Emblem Placard may not be sold, assigned, or otherwise transferred, and shall not be removed from the premises of the Authorized Cannabis Store to which the Emblem Placard was issued, except as specified in this ordinance. The Emblem Placard shall not create, confer or convey any vested or nonconforming right or benefit, including the right to engage in Commercial Cannabis Activity, to any Person in possession of the Emblem Placard.

(d) Emblem Placard – Issuance, Posting, Inspection, Suspension, and Revocation.

1. Issuance. The Program Administrator shall cause an Emblem Placard to be issued to all Authorized Cannabis Stores.

2. Posting. The Program Administrator shall cause the Emblem Placard to be posted at the Business Premises so as to be clearly visible to the general public and to patrons entering the Business Premises by

posting the Emblem Placard in the front window of the retail business within five (5) feet of the front door, in a display case mounted to the outside front wall of the store within five (5) feet of the front door, or in another location as directed and determined in the discretion of the Program Administrator to ensure proper notice to the general public and to patrons.

(i) An Authorized Cannabis Store shall, at its sole cost, make any reasonable modifications to the exterior or interior of its Business Premises that the Program Administrator determines are necessary to

accommodate the posting of the Emblem Placard, including, but not limited to, modifications to lighting, window treatments, coverings, tinting, glazing, and painting, and the mounting of a display case on the exterior of the Business Premises.

(ii) An Authorized Cannabis Store shall not alter, move, remove, or otherwise modify an Emblem Placard posted at its Business Premises pursuant to this section unless ordered or authorized to do so in

writing by the Program Administrator.

3. Inspection. Not less than once per year, the Program Administrator shall cause an inspection to take place at the premises of an Authorized Cannabis Store to ensure the Emblem Placard is displayed and the

Health Information Advisory is provided or made accessible to consumers in compliance with the provisions of this ordinance. Inspections shall take place during ordinary business hours and may be unannounced. The Program Administrator may conduct an inspection more than once per year if the Program Administrator determines more frequent inspections are necessary to ensure compliance with the Program. Inspections may be conducted in conjunction with or separately from other regular inspections.

4. Suspension. Upon a determination by the Program Administrator that a Licensee ceases to keep all applicable licenses, permits, or authorizations current, valid, and in good standing, the Program

Administrator may immediately suspend the Licensee’s participation in the Program. Written notice will be provided to the Licensee detailing the reason for the suspension, along with instructions for reinstatement. The Emblem Placard will be removed by the Program Administrator, or an authorized representative, until the Licensee takes the necessary steps for reinstatement into the Program.

5. Revocation. Upon a determination by the Program Administrator that a Licensee ceases to be an Authorized Cannabis Store for any reason, the Program Administrator shall immediately issue an order in

writing to the store to remove the Emblem Placard from public view and return the Emblem Placard to the Program Administrator, or provide other evidence satisfactory to the Program Administrator that the Emblem Placard has been destroyed. The Program Administrator’s determination shall be final and not subject to appeal. If an Authorized Cannabis Store’s Temporary Approval or License is revoked, suspended, canceled, or not renewed, the Licensee shall immediately remove the Emblem Placard from public view.

(e) Health Information Advisory. An Authorized Cannabis Store, at the direction of the Program Administrator, shall provide or make accessible to the consumer a Health Information Advisory created by the Los Angeles County Department of Public Health. The Health Information Advisory shall be supplied by the Program Administrator. An Authorized Cannabis Store shall provide the Health Information Advisory to the consumer at the point of sale. The Program Administrator may also supply Health Information Advisory materials in pamphlet or other written form to an Authorized Cannabis Store, and require those materials be displayed and made accessible to consumers.

(f) Violations. (Amended by Ord. No. 188,451, Eff. 12/30/24.)

1. A Business Premises with a License or Temporary Approval to conduct Storefront Retail Commercial Cannabis Activity must display a County issued Emblem Placard within 5 days of issuance.

2. It shall be a misdemeanor and an unfair business practice subject to criminal and civil enforcement to display or use the Emblem or Emblem Placard, or any placard, symbol, or rendering that is substantially or confusingly similar to the Emblem or Emblem Placard, in connection with any commercial cannabis activity for the purpose of falsely holding oneself out as an Authorized Cannabis Store.

3. City and the Program Administrator may conduct inspections of any commercial cannabis business displaying the Emblem or Emblem Placard, or a substantially or confusingly similar Emblem or Emblem Placard, on its premises, for the purposes of determining whether the store is an Authorized Cannabis Store.

4. Where City and County laws conflict, commercial cannabis businesses shall comply with all City laws, rules, and regulations unless the issue directly relates to matters of public health that are regulated by the County pursuant to this Program.

   ARTICLE 5

COMMERCIAL CANNABIS ACTIVITY

(Added by Ord. No. 185,345, Eff. 12/19/17.)

Section 105.00 Purposes and Intent. 105.01 Definitions. 105.02 Location and Other Requirements for Commercial Cannabis Activity. 105.03 Limited Grandfathering of Existing Medical Marijuana Dispensaries. 105.04 No Authority to Permit Use in Any Zone. 105.05 No Vested or Nonconforming Rights. 105.06 Unlawful Cannabis Activity. 105.07 No Conflict with State Law. 105.08 No Conflict with Federal Law.

(Added by Ord. No. 185,345, Eff. 12/19/17.)

The purpose of this article is to stem the negative impacts and secondary effects associated with Cannabis related activities in the City, including, but not limited to, those documented in case law and in the legislative histories of cannabis regulations in the City, including but not limited to: neighborhood disruption and intimidation caused in part by increased transient visitors; exposure of school-age children and other residents sensitive to cannabis; cannabis sales to minors; and violent crimes.

This article is part of the City’s first comprehensive set of regulations addressing Commercial Cannabis Activity in the City. The purpose of this article is to strike a balance to protect local communities and neighborhoods from the known negative effects of cannabis activities, while also to provide for Commercial Cannabis Activity recognized by State law. This article may be reviewed by the City within four years after its adoption with the purpose to determine whether the public health, welfare, and safety would be served by either expanding or restricting the locations where Commercial Cannabis Activity occurs.

This article is not intended to conflict with federal or state law. It is the intention of the City Council that this article be interpreted to be compatible with federal and state enactments and in furtherance of the public purposes that those enactments encompass.

(Added by Ord. No. 185,345, Eff. 12/19/17.)

The following words or phrases, when used in this article, shall be construed as defined below. Words and phrases not defined here shall be construed as defined in Sections 11.01 and 12.03 of this Code; and in Sections 1746, 11362.5, and 11362.7 of the Health and Safety Code:

“Alcoholism or Drug Abuse Recovery or Treatment Facility ” means any non-medical alcoholism and drug abuse recovery or treatment facilities licensed or certified by the State of California Department of Health Care Services to provide residential non-medical services to individuals who are recovering from problems related to alcohol, drug, or alcohol and drug misuse or abuse, and who need alcohol, drug, or alcohol and drug recovery treatment or detoxification services. (Amended by Ord. No. 187,094, Eff. 7/1/21.)

“Applicant” means an Applicant as defined in Section 104.01 of this Code. (Added by Ord. No. 187,094, Eff. 7/1/21.)

“Application Date” means the date the Applicant pays all Pre-Application Review or Modification Request Form Review fees associated with a Business Premises relocation request, whichever is applicable,

required under Los Angeles Municipal Code Section 104.19. (Added by Ord. No. 187,094, Eff. 7/1/21.)

“Business Premises” means the designated structure or structures and land specified in an application for a License that is owned, leased, or otherwise held under the control of the Applicant or Licensee where the licensed Commercial Cannabis Activity will be or is conducted.

“Cannabis” means Cannabis as defined in Section 26001 of the California Business and Professions Code, included in the Medicinal and Adult Use Cannabis Regulation and Safety Act, as currently defined or as may be amended.

“City” means the City of Los Angeles.

“Commercial Cannabis Activity” includes the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery or sale of cannabis and cannabis products as provided for in Division 10 of the California Business and Professions Code as implemented by the California Code or Regulations, as currently defined or as may be amended.

“Day Care Center” means a child care-infant center, child care center, or child care center preschool licensed by the State of California Department of Social Services that is not located on a residential zoned property. (Amended by Ord. No. 187,094, Eff. 7/1/21.)

“EMMD” means an existing medical marijuana dispensary that is in compliance with all restrictions of Proposition D, notwithstanding those restrictions 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 application is deemed complete.

“Permanent Supportive Housing” means Supportive Housing as defined in the Draft Permanent Supportive Housing Ordinance initiated August 30, 2017, CPC-2017-3136-CA, as may hereafter be adopted or amended, to include housing with no limit on length of stay that is occupied by persons with low incomes who have one or more disabilities and may include, among other populations, adults, emancipated minors, families with children, elderly persons, young adults aging out of the foster care system, individuals exiting from institutional settings, veterans, and homeless people, but only to the extent such Permanent Supportive Housing provides on-site Supportive Services. As may hereafter be adopted or amended, Supportive Services means services that are provided on a voluntary basis to residents of Supportive Housing, including, but not limited to, a combination of subsidized, permanent housing, intensive case management, medical and mental health care, substance abuse treatment, employment services, benefits advocacy, and other services or service referrals necessary to obtain and maintain housing.

“Public Library” means a place in which literary, musical, artistic, or reference materials, such as books, manuscripts, newspapers, recordings, or films, are kept for use but not for sale, which is under the control, operation or management of the City Board of Library Commissioners, and which allows access to members of the public.

“Public Park” means an open space, park, playground, swimming pool, beach, pier, reservoir, golf course, or similar recreational facility, which is under the control, operation or management of the City Board of Recreation and Park Commissioners; the Santa Monica Mountains Conservancy; the Mountains Recreation and Conservation Authority; the County of Los Angeles Department of Beaches and Harbors; the County of Los Angeles Department of Parks and Recreation; the California Department of Parks and Recreation; or the National Park Service; and shall further include any property in the City of Los Angeles zoned Open Space (“OS”) as defined under Section 12.04.05 of the Los Angeles Municipal Code that is maintained or operated as a parks and recreation facility, including bicycle trails, equestrian trails, walking trails, nature trails, park land/lawn areas, children’s play areas, child care facilities, picnic facilities, and athletic fields used for park and recreation purposes. (Amended by Ord. No. 187,094, Eff. 7/1/21.)

“Publicly Available” in reference to a Sensitive Use, means identified on an official list posted on one of the following official websites maintained by or on behalf of the following respective responsible governmental agencies. This list of official websites may hereinafter be amended as necessary by DCR’s Rules and Regulations. (Added by Ord. No. 187,094, Eff. 7/1/21.)

(a) Alcoholism or Drug Abuse Recovery or Treatment Facilities shall be identified on the official website for the California Department of Health Care Services;

(b) Day Care Centers shall be identified on the official website for the California Department of Social Services;

(c) Public Libraries shall be identified on the official website for the Los Angeles Public Library;

(d) Public Parks shall be identified on the official website for the City of Los Angeles Department of Recreation and Parks;

(e) Schools shall be identified on the official website for the California Department of Education; and

(f) Permanent Supportive Housing shall be identified on the City’s Open Data Portal list titled “HCIDLA Affordable Housing Projects List (2003 to Present)”, or as may be amended.

“Residentially Zoned Property” means any lot located in the RA Suburban Zone, RE Residential estate Zone, RS Suburban Zone, R1 One-Family Zone, RU Residential Urban Zone, RZ Residential Zero Side Yard Zone, RW1 Residential Waterways Zone, R2 Two-Family Zone, RD Restricted Density Multiple Dwelling Zone, RMP Mobilehome Park Zone, RW2 Residential Waterways Zone, R3 Multiple Dwelling Zone, RAS3 Residential / Accessory Services Zone, R4 Multiple Dwelling Zone, RAS4 Residential / Accessory Services Zone, or R5 Multiple Dwelling Zone.

“School” means an institution of learning for minors, whether public or private, which offers in- person instruction in grades K through 12 in those courses of study required by the California Education Code, and is licensed by the State Board of Education. This definition includes kindergarten, elementary, junior high, senior high or any special institution of learning under the jurisdiction of the State Department of Education, but it does not include a vocational or professional institution or an institution of higher education, including a community or junior college, college or university. (Amended by Ord. No. 187,094, Eff.

7/1/21.)

“Sensitive Use” means an Alcoholism or Drug Abuse Recovery or Treatment Facility, Day Care Center, Public Library, Public Park, School, and/or Permanent Supportive Housing. (Added by Ord. No. 187,094, Eff. 7/1/21.)

“Verification Date” means the first business day of the calendar quarter beginning February 1, May 1, August 1, or November 1, which immediately precedes the Application Date. (Added by Ord. No. 187,094, Eff. 7/1/21.)

(Added by Ord. No. 185,345, Eff. 12/19/17.)

The Commercial Cannabis Activity described in Subsections (a)1. - (a)7. shall be limited to such activity conducted by a person licensed by the state of California and the City to engage in such Commercial Cannabis Activity described in this article.

The Commercial Cannabis Activity described in Subsections (a)1. - (a)7. shall not be required to comply with the distance restriction from a school, day care center, or youth center stated in Business and Professions Code Section 26054. In place and stead of these State law distance and sensitive use restrictions, the Commercial Cannabis Activity shall be required to meet the distance and sensitive use restrictions stated in this article.

(a) Commercial Cannabis Activity.

1. Retailer Commercial Cannabis Activity. Commercial Cannabis Activity falling under the category “Type 10 - Retailer” in Section 26050 of the California Business and Professions Code or “Type 9 - Non- Storefront Retailer” in California Code of Regulations Title 16 Division 42 Chapter 3 Section 5414; only to the extent such commercial activity is located and occurring:

   (A) Within any of the following zones:

   (1) Chapter 1 of the Los Angeles Municipal Code: C1 Limited Commercial Zone, C1.5 Limited Commercial Zone, C2 Commercial Zone, C4 Commercial Zone, C5 Commercial Zone, CM

   Commercial Manufacturing Zone, M1 Limited Industrial Zone, M2 Light Industrial Zone, or M3 Heavy Industrial Zone, under Chapter 1 of the Los Angeles Municipal Code; or

   (2) Commercial Manufacturing (Glencoe/Maxella) Zone: CM(GM) Zone under the Glencoe/Maxella Specific Plan; or

   (3) Central City West Specific Plan Zone: RC4(CW) Residential Mixed-Use Category, RC5(CW) Residential Mixed-Use Category, C1(CW) Limited Commercial Category, C2(CW) Commercial

   Category, C4(CW) Commercial Category, or CM(CW) Commercial Manufacturing Category, under the Central City West Specific Plan; or

   (4) Warner Center Specific Plan Zone: WC Warner Center Specific Plan Zone where “Retail Store, general merchandise” or “Hybrid Industrial” uses are permitted under the Warner Center

   Specific Plan; or

   (5) Los Angeles Sports and Entertainment District Specific Plan Zone: LASED Los Angeles Sports and Entertainment District Specific Plan Zone under the Los Angeles Sports and Entertainment District Specific Plan; or

   (6) Playa Vista Specific Plan Zone: M(PV) Industrial Zone and M2(PV) Industrial Zone under the Playa Vista Specific Plan; or

   (7) Paramount Pictures Specific Plan Zone: Paramount Pictures Specific Plan Zone within the Lemon Grove Lot (Parcels A and B), South Bronson Lot, Windsor Lot, Camerford Lot, Waring Lot,

   and Gregory Lot (Parcels A and B) under the Paramount Pictures Specific Plan; or

(8) USC Specific Plan Zone: USC Specific Plan Zone within Subarea 3 under the USC Specific Plan; or

(9) Jordan Downs Urban Village Specific Plan Zone: CM(UV) Commercial Manufacturing Zone under the Jordan Downs Urban Village Specific Plan; or

(10) Cornfield-Arroyo Seco Specific Plan Zone: UC(CA) Urban Center, UI(CA) Urban Innovation, UV(CA) Urban Village Zones under the Cornfield-Arroyo Seco Specific Plan; and

(B) Outside of a 700-foot radius of a Sensitive Use; and outside of a 700-foot radius of any other Retailer or Microbusiness Commercial Cannabis Activity, having on-site retail sales, which is licensed by the City to engage in the Commercial Cannabis Activity or for which Temporary Approval Application or Business Premises Relocation fees, whichever is applicable, are paid pursuant to Los Angeles Municipal Code Section 104.19. (Amended by Ord. No. 187,094, Eff. 7/1/21.)

Exception. Type 9 - Non- Storefront Commercial Cannabis Activity shall not be required to locate outside of a 700-foot radius of a Public Park, Public Library, Alcoholism or Drug Abuse Recovery or Treatment Facility, Day Care Center, and Permanent Supportive Housing; or outside of a 700-foot radius of any other Retailer or Microbusiness Commercial Cannabis Activity having onsite retail sales, which is licensed by the state of California and licensed by the City to engage in the Commercial Cannabis Activity. Type 9 - Non-Storefront Commercial Cannabis Activity shall be required to locate outside of a 600- foot radius of a School. (Amended by Ord. No. 187,094, Eff. 7/1/21.)

2. Microbusiness Commercial Cannabis Activity. Commercial Cannabis Activity falling under the category “Type 12 - Microbusiness” in Section 26050 of the California Business and Professions Code, only to the extent such commercial activity is located and occurring:

   (A) Within any of the following zones:

   (1) Chapter 1 of the Los Angeles Municipal Code: M1 Limited Industrial Zone, M2 Light Industrial Zone, or M3 Heavy Industrial Zone, under Chapter 1 of the Los Angeles Municipal Code.

   Type 12 - Microbusiness Commercial Cannabis Activity that does not engage in retail activity with on-site sales may further locate in the MR1 Restricted Industrial Zone and MR2 Restricted Light Industrial Zone under Chapter 1 of the Los Angeles Municipal Code; or

   (2) Warner Center Specific Plan Zone: WC Warner Center Specific Plan Zone where “Hybrid Industrial” uses are permitted under the Warner Center Specific Plan; or

   (3) Playa Vista Specific Plan Zone: M(PV) Industrial Zone, and M2(PV) Industrial Zone under the Playa Vista Specific Plan; or

   (4) Cornfield-Arroyo Seco Specific Plan Zone: UC(CA) Urban Center, UI(CA) Urban Innovation, UV(CA) Urban Village Zones under the Cornfield-Arroyo Seco Specific Plan; and

(B) Outside of a 700-foot radius of a Sensitive Use; and outside of a 700-foot radius of any other Retailer or Microbusiness Commercial Cannabis Activity, having on-site retail sales, which is licensed by the City to engage in the Commercial Cannabis Activity or for which Temporary Approval Application or Business Premises Relocation fees, whichever is applicable, are paid pursuant to Los Angeles Municipal Code Section 104.19. (Amended by Ord. No. 187,094, Eff. 7/1/21.)

Exception. Any Microbusiness Commercial Cannabis Activity with sales to the public limited to off-site deliveries and having no on-site sales shall not be required to locate outside of a 700-foot radius of a Public Park, Public Library, Alcoholism or Drug Abuse Recovery or Treatment Facility, Day Care Center, and Permanent Supportive Housing; or outside of a 700-foot radius of any other Retailer or Microbusiness Commercial Cannabis Activity having on-site retail sales, which is licensed by the state of California and licensed by the City to engage in the Commercial Cannabis Activity. Any Microbusiness Commercial Cannabis Activity with sales to the public limited to off-site deliveries and having no on-site sales shall be required to locate outside of a 600- foot radius of a School. (Amended by Ord. No. 187,094, Eff. 7/1/21.)

3. Indoor Commercial Cannabis Cultivation Activity. Commercial Cannabis Activity falling under the category “Type 1A - Cultivation; Specialty indoor, Small”; “Type 1C - Cultivation, Specialty cottage,

Small,” limited to indoor cultivation; “Type 2A - Cultivation; Indoor, Small”; “Type 3A - Cultivation; Indoor, Medium”; “Type 4 - Cultivation; Nursery,” limited to indoor cultivation; or “Type 5A - Cultivation; Indoor, Large,” in Section 26050 of the California Business and Professions Code; or “Processor” cultivation license in California Code of Regulations Title 3 Division 8 Chapter 1 Section 8201(f), limited to indoor processing; only to the extent such commercial activity is located and occurring:

(A) Within any of the following zones:

(1) Chapter 1 of the Los Angeles Municipal Code: MR1 Restricted Industrial Zone, M1 Limited Industrial Zone, MR2 Restricted Light Industrial Zone, M2 Light Industrial Zone, or M3 Heavy Industrial Zone, under Chapter 1 of the Los Angeles Municipal Code; or

(2) Warner Center Specific Plan Zone: WC Warner Center Specific Plan Zone where “Hybrid Industrial” uses are permitted under the Warner Center Specific Plan; or

(3) Playa Vista Specific Plan Zone: M(PV) Industrial Zone, and M2(PV) Industrial Zone under the Playa Vista Specific Plan; or

(4) Cornfield-Arroyo Seco Specific Plan Zone: UC(CA) Urban Center, UI(CA) Urban Innovation, UV(CA) Urban Village Zones under the Cornfield-Arroyo Seco Specific Plan; and

(B) Outside of a 600-foot radius of a School.

4. Level 1 Manufacturing Commercial Cannabis Activity. Commercial Cannabis Activity falling under the category “Type 6 - Manufacturer 1" in Section 26050 of the California Business and Professions Code; or “Type N” or “Type P” in California Code of Regulations, Title 17, Division 1, Chapter 13, Section 40118; only to the extent such commercial activity is located and occurring:

   (A) Within any of the following zones:

   (1) Chapter 1 of the Los Angeles Municipal Code: MR1 Restricted Industrial Zone, M1 Limited Industrial Zone, MR2 Restricted Light Industrial Zone, M2 Light Industrial Zone, or M3 Heavy

Industrial Zone, under Chapter 1 of the Los Angeles Municipal Code; or

(2) Warner Center Specific Plan Zone: WC Warner Center Specific Plan Zone where “Hybrid Industrial” uses are permitted under the Warner Center Specific Plan; or

(3) Playa Vista Specific Plan Zone: M(PV) Industrial Zone, and M2(PV) Industrial Zone under the Playa Vista Specific Plan; or

(4) Cornfield-Arroyo Seco Specific Plan Zone: UC(CA) Urban Center, UI(CA) Urban Innovation, UV(CA) Urban Village Zones under the Cornfield-Arroyo Seco Specific Plan; and

(B) Outside of a 600-foot radius of a School.

5. Level 2 Manufacturing Commercial Cannabis Activity. Commercial Cannabis Activity falling under the category “Type 7 - Manufacturer 2" in Section 26050 of the California Business and Professions

Code, only to the extent such commercial activity is located and occurring:

(A) Within any of the following zones:

(1) Chapter 1 of the Los Angeles Municipal Code: MR2 Restricted Light Industrial Zone, M2 Light Industrial Zone, or M3 Heavy Industrial Zone, under Chapter 1 of the Los Angeles Municipal

Code; or

(2) Warner Center Specific Plan Zone: WC Warner Center Specific Plan Zone where “Hybrid Industrial” uses are permitted under the Warner Center Specific Plan; or

(3) Playa Vista Specific Plan Zone: M(PV) Industrial Zone, and M2(PV) Industrial Zone under the Playa Vista Specific Plan; and

(B) Outside of a 600-foot radius of a School; and

(C) Outside of a 200-foot radius of any Residentially Zoned Property.

6. Testing Commercial Cannabis Activity. Commercial Cannabis Activity falling under the category “Type 8 - Testing” in Section 26050 of the California Business and Professions Code, only to the extent

such commercial activity is located and occurring:

(A) Within any of the following zones:

(1) Chapter 1 of the Los Angeles Municipal Code: CM Commercial Manufacturing Zone, MR1 Restricted Industrial Zone, M1 Limited Industrial Zone, MR2 Restricted Light Industrial Zone, M2

Light Industrial Zone, or M3 Heavy Industrial Zone, under Chapter 1 of the Los Angeles Municipal Code; or

(2) Commercial Manufacturing (Glencoe/Maxella) Zone: CM(GM) Zone under the Glencoe/Maxella Specific Plan; or

(3) Central City West Specific Plan Zone: CM(CW) Commercial Manufacturing Category under the Central City West Specific Plan; or

(4) Warner Center Specific Plan Zone: WC Warner Center Specific Plan Zone where “Hybrid Industrial” uses are permitted under the Warner Center Specific Plan; or

(5) Playa Vista Specific Plan Zone: M(PV) Industrial Zone, and M2(PV) Industrial Zone under the Playa Vista Specific Plan; or

(6) Jordan Downs Urban Village Specific Plan Zone: CM(UV) Commercial Manufacturing Zone under the Jordan Downs Urban Village Specific Plan; or

(7) Cornfield-Arroyo Seco Specific Plan Zone: UC(CA) Urban Center, UI(CA) Urban Innovation, UV(CA) Urban Village Zones under the Cornfield-Arroyo Seco Specific Plan; and

(B) Outside of a 600-foot radius of a School.

7. Distributor Commercial Cannabis Activity. Commercial Cannabis Activity falling under the category “Type 11 - Distributor” in Section 26050 of the California Business and Professions Code, only to the extent such commercial activity is located and occurring:

   (A) Within any of the following zones:

   (1) Chapter 1 of the Los Angeles Municipal Code: MR1 Restricted Industrial Zone, M1 Limited Industrial Zone, MR2 Restricted Light Industrial Zone, M2 Light Industrial Zone, or M3 Heavy Industrial Zone, under Chapter 1 of the Los Angeles Municipal Code; or

   (2) Warner Center Specific Plan Zone: WC Warner Center Specific Plan Zone where “Hybrid Industrial” are permitted under the Warner Center Specific Plan; or

   (3) Playa Vista Specific Plan Zone: M(PV) Industrial Zone, and M2(PV) Industrial Zone under the Playa Vista Specific Plan; or

   (4) Cornfield-Arroyo Seco Specific Plan Zone: UC(CA) Urban Center, UI(CA) Urban Innovation, UV(CA) Urban Village Zones under the Cornfield-Arroyo Seco Specific Plan; and

   (B) Outside of a 600-foot radius of a School.

(b) The distance specified in this section between Commercial Cannabis Activity businesses shall be the horizontal distance measured in a straight line, without regard to intervening structures, from the closest exterior wall of each business. The distance between any Commercial Cannabis Activity business, and any Sensitive Use with exclusive use of the parcel upon which it is located, shall be the horizontal distance measured in a straight line, without regard to intervening structures, from the closest exterior wall of the Commercial Cannabis Activity business to the closest parcel boundary of the Sensitive Use. The distance between any Commercial Cannabis Activity business and any Sensitive Use without exclusive control of the parcel upon which it located, shall be the horizontal distance measured in a straight line, without regard to intervening structures, from the closest exterior wall of the Commercial Cannabis Activity business to the closest exterior wall or fence under the control of the Sensitive Use, excluding parking lots. (Amended by Ord. No. 187,094, Eff. 7/1/21.)

(c) An Applicant’s proposed Business Premises location shall be deemed compliant with the required distances specified in Section 105.02 from Sensitive Uses if the proposed Business Premises location complies with the required distances from all Sensitive Uses that are Publicly Available to the Department of Cannabis Regulation on the Verification Date. Any Sensitive Use not Publicly Available to the Department of Cannabis Regulation on the Verification Date shall not disqualify an Applicant’s proposed Business Premises location. This Subsection 105.02(c) shall apply to pending applications for which Temporary Approval Application Fees have been paid pursuant to Los Angeles Municipal Code Section 104.19, provided that the proposed Business Premises location complies with the required distances from all Sensitive Uses that are Publicly Available to the Department of Cannabis Regulation on the effective date of this ordinance. (Amended by Ord. No. 187,094, Eff. 7/1/21.)

(Added by Ord. No. 185,345, Eff. 12/19/17.)

(a) Limited Grandfathering of Existing Medical Marijuana Dispensaries Pending Receipt of a Final Response by the City to Application for a License. An EMMD that is operating in compliance with the limited immunity provisions (Los Angeles Municipal Code Section 45.19.6.3) of Proposition D notwithstanding those restrictions would have been repealed, including the tax provisions (Los Angeles Municipal Code Section 21.50) of Proposition D, may continue to operate within the City at the one location identified in its original or amended business tax registration certificate until such time that the EMMD applies for and receives a final response to its application for a City license for Commercial Cannabis Activity being conducted at that location. To avail itself of the terms of this Section, an EMMD must: (1) apply for a license from the City within sixty calendar days of the first date that license applications are made available by the City; and (2) limit on-site cultivation at the Business Premises to not exceed the size of the EMMD’s existing square footage of building space as of March 7, 2017, as documented by dated photographs, building lease entered into on or before March 7, 2017, or comparable evidence.

(b) Limited Grandfathering if the City Issues a License. If the City issues the EMMD a City license for Commercial Cannabis Activity, the EMMD shall continue to operate at its location within the City in

accordance with the rules and regulations set forth by the City. Such EMMD shall not be subject to the zone, distance and Sensitive Use restrictions stated in Section 105.02 of this article until after December 31, 2025, on the condition that the EMMD operates and continues to operate in compliance with the distance and Sensitive Use restrictions (Los Angeles Municipal Code Section 45.19.6.3 L. and O. of Proposition D), notwithstanding those restrictions would have been repealed, except that the EMMD need not comply with the prohibition on ingress or egress on a side of the premises that abuts, is across a street, alley, or walk from, or shares a common corner with residentially zoned property, so long as the ingress or egress is restricted to employees, vendors and contractors of the EMMD. If the EMMD that is issued a License fails to operate in compliance with these provisions of Proposition D, the EMMD’s License shall be subject to revocation. This limited grandfathering shall not create, confer, or convey any vested right or nonconforming right or benefit regarding any activity conducted by the EMMD beyond the term and activities provided by the License. This limited grandfathering shall cease immediately after December 31, 2025. After December 31, 2025, all EMMDs shall comply with (1) the distance and Sensitive Use restrictions of Los Angeles Municipal Code Section 45.19.6.3 L. and O. of Proposition D notwithstanding those restrictions are or would have been repealed; and (2) the zoning requirements of LAMC Section 105.00 et seq. An EMMD shall not be subject to the distance and Sensitive Use requirements set forth in Section 105.02 of this Article 5 Chapter X as long as it remains at the location identified in its Proposition M Priority Processing Application. (Amended by Ord. No. 187,094, Eff. 7/1/21.)

(c) The limited grandfathering provided by this Section 105.03 shall not create, confer, or convey any vested right or nonconforming right or other benefit regarding any activity conducted by the EMMD beyond the term and activities provided by the licenses issued by the State and City to such EMMDs.

(Added by Ord. No. 185,345, Eff. 12/19/17.)

The use of any building, structure, location, premises or land for any Cannabis related activity is not currently enumerated in the Los Angeles Municipal Code as a permitted use in any zone, nor is the use set forth on the Official Use List of the City as determined and maintained by the Zoning Administrator.

The Commercial Cannabis Activity described in Subsections (a)1. - (a)7. of this article is limited to the term and activities provided by the licenses issued to such Commercial Cannabis Activity by the state of California and the City.

So long as this article remains in effect, the Zoning Administrator shall not have the authority to determine that the use of any building, structure, location, premises or land for any Cannabis related activity may be permitted in any zone; to add any Cannabis activity to the Official Use List of the City; or to grant any land use approval authorizing any Cannabis activity.

Subject to the restrictions of this section, the Zoning Administrator shall have authority to issue interpretations under Section 12.21 A.2. of Chapter 1 of this Code as may be necessary to clarify any provision(s) of this article to remain consistent with any amendments to local or State law.

(Added by Ord. No. 185,345, Eff. 12/19/17.)

Neither this article, nor any other provision of this Code, or action, failure to act, statement, representation, recognition, certificate, approval, permit or license issued by the City, the Department of Cannabis Regulation, the Cannabis Regulation Commission, or their respective representatives, agents, employees, attorneys or assigns, shall create, confer, or convey any vested or nonconforming right or benefit regarding any Commercial Cannabis Activity beyond the period of time and range of activities specifically provided by the licenses issued to such activity by the state of California and the City.

This article does not create, confer, or convey any right or benefit regarding any activity beyond the lawfulness of any License issued by the City to engage in Commercial Cannabis Activity or any applicable State of California license for such activity. If any City License or any applicable State license is held unconstitutional, invalid or unenforceable for any reason by any court or tribunal of competent jurisdiction, the Commercial Cannabis Activity subject to such license shall be prohibited in the City of Los Angeles and shall immediately cease all operations in the City. The owner of any City License or any applicable State license assumes all risk associated with the validity of such licenses. The owner of any license found to be unconstitutional, invalid or unenforceable and required thereby to cease Commercial Cannabis Activity, shall not be entitled to any compensation from the City based upon such license; the finding that such license is unconstitutional, invalid or unenforceable; or the requirement that any Commercial Cannabis Activity must thereby immediately cease in the City.

(Added by Ord. No. 185,345, Eff. 12/19/17.)

(a) It is unlawful to conduct any Commercial Cannabis Activity in the City without a license issued by the state of California and by the City. It is unlawful to conduct any Commercial Cannabis Activity in the City falling under Type 1 (Cultivation, Specialty outdoor, Small); Type 1B (Cultivation; Specialty mixed-light, Small); Type 1C (Cultivation, Specialty cottage, Small) (outdoor and mixed- light cultivation); Type 2 (Cultivation, Outdoor, Small); Type 2B (Cultivation; Mixed-light, Small); Type 3 (Cultivation, Outdoor, Medium); Type 3B (Cultivation; Mixed-light, Medium); Type 4 (Cultivation; Nursery) (mixed light cultivation); Type 5 (Cultivation; Outdoor; Large); or Type 5B (Cultivation, Mixed-light, Large), in Section 26050 of the California Business and Professions Code.

(b) It is unlawful to conduct any Commercial Cannabis Activity on any lot located within the Alameda District Specific Plan Zone, Los Angeles International Airport Specific Plan Zone, Port Master Plan of the Port of Los Angeles, or any zone or other area not identified in Section 105.02(a) of this article.

(c) It is unlawful to plant, cultivate, harvest, dry, process, manufacture or store any living marijuana plants allowed by State law, if such action or conduct occurs outdoors at any location in the City. This prohibition shall not apply to the limited conduct allowed under Health and Safety Code Section 11362.1(a)(3).

(d) It is unlawful to possess, plant, cultivate, harvest, dry, process, manufacture, distribute, store, test, package, label, transport, deliver, sell, purchase, obtain or give away any Cannabis or Cannabis product allowed by State law, if such action or conduct occurs in any structure where any Cannabis or Cannabis derived product is visible from the exterior of the structure. This prohibition shall not apply to the limited conduct allowed under Health and Safety Code Section 11362.1(a)(3).

(e) It is unlawful to transport or deliver by vehicle any Cannabis or Cannabis derived product allowed by State law, where any Cannabis or Cannabis derived product is visible from the exterior of the vehicle.

(f) It is unlawful to establish, operate or participate in a medical marijuana collective or cooperative unless in a dwelling unit which has no more than three qualified patients, persons with identification cards or primary caregivers or a combination of these amounting to three.

(g) It is unlawful to operate, use, or permit the operation or use of any land, structure, or vehicle in the City for any of the stated prohibited actions or conduct. It is unlawful to own, establish, or permit the establishment of any land, structure or vehicle in the City for any of the stated prohibited actions or conduct. It is unlawful to rent, lease or otherwise permit any of the prohibited actions or conduct at any location, structure or vehicle in the City.

(Added by Ord. No. 185,345, Eff. 12/19/17.)

This article is not intended to conflict with State law. This article shall be interpreted to be compatible with State enactments and in furtherance of the public purposes that those enactments encompass.

(Added by Ord. No. 185,345, Eff. 12/19/17.)

This article is not intended to conflict with Federal law or stand as an obstacle or conflict with any efforts by the Federal government to enforce Federal laws related to Cannabis related activities.