Los Angeles Municipal Code § 104.06 Annual Licenses

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

(a) Annual License Application – Filing. An Annual License Application shall be filed following: (i) the issuance of Temporary Approval pursuant to Section 104.05 or a determination that the Pre-Application Record is eligible for further processing pursuant to Section 104.03(a); (ii) the submission to DCR’s Licensing Portal of all completed Annual License Application information, forms, and documents required by the Rules and Regulations; (iii) the submission of a complete project description pursuant to Subsection (d); (iv) the payment of the applicable application fee(s) for each Commercial Cannabis Activity pursuant to Section 104.19; and (v) payment of the applicable environmental assessment fee(s) pursuant to Section 104.19. DCR may request additional information and documents from the Applicant at any time during application processing, subject to payment of any fees under Section 104.19. The Annual License Application shall be abandoned if requested information, forms, or documents are not submitted, or fees are not paid, within the allotted time. (Amended by Ord. No. 188,451, Eff. 12/30/24.)

(b) Annual Licenses for Storefront Retailer Commercial Cannabis Activity (Type 10). (Amended by Ord. No. 188,451, Eff. 12/30/24.)

1. Within 30 days of the filing of an Annual Application for Storefront Retailer Commercial Cannabis Activity pursuant to Subsection (a), DCR shall send a Notice of Complete Application 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 about the Application. DCR shall also post the notice to its website.

(i) After receipt of the Notice of Complete Application, the Applicant shall pay the required notice fees pursuant to Section 104.19(d), the Community Meeting Fee and Cannabis Regulation Commission

Hearing Fee pursuant to Section 104.19(e), as well as any outstanding fees, within 30 days from the date of the invoice.

(ii) Within 10 days of receipt of the Notice of Complete Application for Storefront Retailer, the Applicant or a designated representative shall contact the Neighborhood Council in which the Storefront Retailer Commercial Cannabis Activity is located and offer to appear before the Neighborhood Council to address questions about the Application. Written evidence of the Applicant’s offer to appear shall be provided to DCR, such as an email to the Neighborhood Council or a copy of the meeting minutes. If the Applicant fails to contact the Neighborhood Council, DCR may request a continuation of the Applicant’s Commission hearing.

(iii) Within 45 days of sending a Notice of Complete Application, DCR shall conduct a community meeting via video or telephone conferencing. DCR shall provide notice of the community meeting no

less than 20 days prior to the date of the community meeting.

(A) The notice of meeting shall contain the following information: date, time and place where the meeting or public hearing will be held, or if the meeting will be held via video or telephone conferencing, a link to the virtual meeting. The notice also shall include: the purpose of the meeting, 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 inform interested parties how to provide DCR with information about the Application.

(B) DCR shall send the notice by U.S. mail to: (1) the Applicant; and (2) the owners and occupants of all property within 700 feet of the property line of the lot on which the proposed Business Premises is located. For the purpose of notification of property owners, the last known name and address of owners as shown on the records of the City Engineer or the records of the County Assessor shall be used. For occupants, the notice shall be addressed to “occupant” and mailed to all property addresses within the 700-foot radius.

(C) DCR shall post the notice on its website and shall send the notice by electronic mail to: (1) the closest Neighborhood Council; (2) the relevant business improvement district, if one exists; and (3) the City Council Office within which the Business Premises is situated.

(D) DCR shall provide the Applicant with a notice by electronic mail that the Applicant shall post in a conspicuous place on the Business Premises. The posted notice shall be printed by the Applicant on a minimum of 11" × 17" paper size with a minimum 20 font size. The notice shall be posted immediately upon receipt.

(iv) At the community meeting, DCR shall accept written and oral testimony regarding the Application and then prepare a written report to the Commission summarizing the testimony in favor and against the Application.

2. Within 90 days of the date DCR sends a Notice of Complete Application, DCR shall either deny the issuance of the Annual License with no hearing, or make a recommendation to the Commission to issue the Annual License. The date of the recommendation shall be the date when DCR transmits its report to the Commission for consideration. Except as otherwise permitted under Section 104.03(a)(1), or as necessary for a record not subject to Section 104.20 to effectuate a refiling, Business Premises relocation, or entity substitution, new Type 10 Licenses shall be limited to only Social Equity Applicants, as defined in Section 104.20, until December 31, 2031. (Amended by Ord. No. 188,812, Eff. 3/9/26.)

   (i) DCR or the Commission may deny the issuance of an Annual License based on written findings for any of the reasons listed in Section 104.04.

   (ii) DCR’s decision to deny the issuance of the Annual License is final and effective upon the close of the 15-day appeal period if not timely appealed to the Commission by the Applicant as provided in
   Section 104.10. There is no further appeal to the City Council. A final denial or exhaustion of all administrative appeals shall terminate any active Temporary Approval.

   (iii) If DCR recommends approval of the Application, the Commission shall make the determination whether to issue the Annual License after it conducts a public hearing. Notice of the hearing shall be
   provided as described in Subsection (b)(1)(iii)(A) - (D) no less than 20 days prior to the date of the hearing.

   (iv) The Commission shall consider the decision by DCR to recommend approval of the Application, the written summary of the community meeting prepared by DCR, the record before DCR, and any
   written information and oral testimony timely provided to the Commission.

   (v) The Commission’s decision to deny the issuance of the Annual License is final and effective upon the close of the 15-day appeal period if not timely appealed to the City Council by the Applicant as
   provided in Section 104.10. A final denial of an Annual License after exhaustion of all administrative appeals shall terminate any active Temporary Approval.

   (vi) The Commission may approve the issuance of the Annual License with written findings supported by evidence in the record that the Applicant and Business Premises meet the requirements of this
   article. The Commission may impose conditions to address public safety concerns based on evidence in the record. The Commission shall not approve the issuance of an Annual License for an Applicant
   subject to a finding of Undue Concentration unless the City Council has found that approval of the Application would serve a public convenience or necessity. The issuance of an Annual License is not
   appealable.

   3. If at any time during the processing of an Annual License Application it is discovered that an Annual License Application has been improperly prepared, required information, forms or documents have not

   been submitted in accordance with this article or the Rules and Regulations, or Applicant or Licensee is subject to a pending compliance inspection or investigation by DCR, upon notification to the Applicant or Licensee, processing of that Annual License Application shall be suspended until the Annual License Application has been corrected or the required information, forms or documents are provided, or the compliance inspection or investigation has been fully resolved. Within 90 days of the date the corrected or required information, forms or documents are provided to DCR, or DCR determines the compliance inspection or investigation has been fully resolved, DCR shall either deny the issuance of the Annual License with no hearing, or make a recommendation to the Commission to issue the Annual License. 4. Unless the Licensee holds an active Temporary Approval, the issuance of an Annual License shall not authorize the Licensee to conduct Commercial Cannabis Activity until an Operating Permit is issued pursuant to Subsection (e). After an Annual License is issued, the Licensee shall obtain an Operating Permit before conducting Commercial Cannabis Activity.

   5. After the issuance of an Annual License by the Commission, DCR may deny the renewal of the Annual License for any of the reasons stated in Section 104.04 based upon written findings supported by

   evidence in the record. The Licensee may request an administrative hearing pursuant to Section 104.14.

   (c) Annual Licenses for All Other Commercial Cannabis Activity. For Commercial Cannabis Activity that is not Storefront Retailer Commercial Cannabis Activity, within 30 days of the filing of an Annual Application pursuant to Subsection (a), DCR shall send a Notice of Complete Application by electronic mail to the Applicant. DCR shall either deny the issuance of the Annual License with no hearing at any time during application processing, or, within 90 days of the date DCR sends a Notice of Complete Application, approve the issuance of the Annual License with no hearing. Except as otherwise permitted under Sections 104.07 and 104.08, Types 1A, 1C, 2A, 3A, 4, 5A and 9 Licenses shall be limited to only Social Equity Applicants, as defined in Section 104.20, until December 31, 2025. (Amended by Ord. No. 188,451, Eff. 12/30/24.)

   1. DCR may deny the issuance of the Annual License with written findings supported by evidence in the record for any of the reasons listed in Section 104.04. DCR’s decision to deny the issuance of the Annual

   License is final and effective upon the close of the 15-day appeal period if not timely appealed to the Commission by the Applicant as provided in Section 104.10. There is no further appeal to the City Council. A final denial of an Annual License upon exhaustion of all administrative appeals shall terminate any active Temporary Approval. 2. DCR may approve the issuance of the Annual License with the imposition of conditions to address public safety concerns. The issuance of an Annual License is not appealable. 3. If at any time during the processing of an Annual License Application it is discovered that an Annual License Application has been improperly prepared, required information, forms or documents have not been submitted in accordance with this article or the Rules and Regulations, or the Licensee is subject to a pending compliance inspection or investigation by DCR, upon notification to the Applicant, processing of that Annual License Application shall be suspended until the Annual License Application has been corrected or the required information, forms or documents are provided, or the compliance inspection or investigation has been fully resolved. Within 90 days of the date the corrected or required information, forms or documents are provided to DCR, or DCR determines the compliance inspection or investigation has been fully resolved, DCR shall either deny the issuance of the Annual License with no hearing, or make a recommendation to the Commission to issue the Annual License. (Amended by Ord. No. 188,451, Eff. 12/30/24.)

   4. Unless the Licensee holds an active Temporary Approval, the issuance of an Annual License shall not authorize the Licensee to conduct Commercial Cannabis Activity until an Operating Permit is issued

   pursuant to Subsection (e). After an Annual License is issued, the Licensee shall obtain an Operating Permit before conducting Commercial Cannabis Activity.

   5. After the issuance of an Annual License, DCR may deny the renewal of the Annual License for any of the reasons stated in Section 104.04 based upon written findings supported by evidence in the record.

   The Licensee may request an administrative hearing pursuant to Section 104.14.

(d) CEQA. Compliance with the California Environmental Quality Act (CEQA).

1. CEQA Definitions. The following definitions shall apply in this subsection:

(i) “CEQA” means the California Environmental Quality Act, California Public Resources Code Sections 21000 et seq. (CEQA Guidelines, Section 15353.)

(ii) “Environment” means the physical conditions existing within the area which will be affected by a proposed project including land, air, water, minerals, flora, fauna, ambient noise, and objects of
historical or aesthetic significance. The area involved shall be the area in which significant effects would occur either directly or indirectly as a result of the project. The “environment” includes both natural
and human- made conditions. (CEQA Guidelines, Section 15360.)

(iii) “Lead Agency” means the public agency which has the principal responsibility for carrying out or approving a project. The Lead Agency will decide whether an EIR or Negative Declaration will be
required for the project and will cause the document to be prepared. Criteria for determining which agency will be the Lead Agency for a project are contained in Section 15051. (CEQA Guidelines, Section
15367.)

(iv) “Project” means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the
environment as defined by CEQA Guidelines Section 15378.

(v) “Responsible Agency” means a public agency which proposes to carry out or approve a project, for which a Lead Agency is preparing or has prepared an EIR or Negative Declaration. For the
purposes of CEQA, the term “Responsible Agency” includes all public agencies other than the Lead Agency which have discretionary approval power over the project. (CEQA Guidelines, Section 15381.)

(vi) “Significant Effect on the Environment” means a substantial, or potentially substantial, adverse change in any of the physical conditions within the area affected by the project, including land, air,
water, minerals, flora, fauna, ambient noise, and objects of historic or aesthetic significance. An economic or social change by itself shall not be considered a significant effect on the environment. A social or
economic change related to a physical change may be considered in determining whether the physical change is significant. (CEQA Guidelines, Section 15382.)

2. Upon the submission of an Annual License Application containing a complete project description for a License, and payment of all applicable fees, DCR shall determine whether the Project has been subject
to environmental review under CEQA within the previous five years, and, if not, what form of environmental review for the License is appropriate. If DCR acts as the local Lead Agency under CEQA, it may, at its
sole discretion and subject to its own independent review and discretion for purposes of approval, request that the Applicant prepare the applicable CEQA documentation which may include: reliance on one or
more categorical or statutory exemptions, a negative declaration or mitigated negative declaration, an environmental impact report, a sustainable communities environmental assessment, an addendum or other
document provided by CEQA. The Commission shall delegate the following actions to DCR when it considers the issuance of an Annual License: (1) certification of an environmental impact report; (2) adoption of
a negative declaration or mitigated negative declaration; or (3) a written determination that a project is not subject to CEQA. If a potentially Significant Effect on the Environment is identified, DCR or, if
applicable, the Commission or its designee shall adopt one or more findings, supported by substantial evidence in the record, consistent with Public Resources Code Sections 21081 and 21081.6, and CEQA
Guidelines Section 15091. Alternatively, if DCR acts as a Responsible Agency under CEQA, DCR or, if applicable, the Commission or its designee, prior to approval of an Annual License, shall consider the Lead
Agency’s environmental document and make the findings required by Public Resources Code Section 21081, and CEQA Guidelines Sections 15096(g) - (h) and 15050(b).

3. Appeals concerning CEQA compliance for projects subject to this chapter shall be filed pursuant to the procedures in LAMC Section 197.01 et seq. The issuance of an Annual License by DCR or the
Commission is not appealable.

4. The renewal of an Annual License with no changes to the Business Premises or Commercial Cannabis Activity is a ministerial approval exempt from the requirements CEQA. (See CEQA Guidelines Sections
15369 and 15268(b)(2).)

(e) Operating Permits. Unless a Licensee is issued Temporary Approval, an Annual Licensee shall not conduct Commercial Cannabis Activity until the Licensee obtains an Operating Permit from DCR. To obtain an Operating Permit, the Licensee shall: (1) pass a Final Inspection at the Business Premises; and (2) submit to the DCR Licensing Portal all necessary permits, clearances, licenses, or other authorizations required by law from the City, State or other public agencies, including a Certificate of Occupancy, which may include clearance from the Los Angeles Fire Department and the Department of Water and Power, a permit from the Los Angeles County Department of Public Health, and a corresponding State License. The Licensee shall ensure that all permits or clearances from other agencies match the correct Business Premises location, the Business Premises diagram submitted to DCR, and relevant Commercial Cannabis Activities as the License. If the Licensee is engaged in Storefront Retailer or Microbusiness Commercial Cannabis Activity with on-site sales, the Licensee also shall obtain an Emblem Placard as required in Section 104.23. The issuance of an Annual License does not waive or otherwise circumvent other City or State requirements or necessary permits from the City, State, or other public agencies.

1. DCR shall conduct Final Inspections in the manner as provided in the Rules and Regulations. DCR may require periodic inspections to determine whether the Licensee maintains a non-operational status until an Operating Permit is issued.

   2. An Annual Licensee conducting Commercial Cannabis Activity without an Operating Permit or Temporary Approval for the relevant Commercial Cannabis Activity is an Unlawful Establishment. If at any time during the processing of an Annual License Application, after the issuance of an Annual License, or during the processing of an Annual License renewal, DCR discovers that an Annual Licensee is an

   Unlawful Establishment, DCR may deny the Annual License Application, suspend and/or revoke the Annual License, deny the Annual License renewal, or issue a Notice of Violation pursuant to Section 104.13.

   3. DCR shall not issue an Operating Permit if the Business Premises is associated with any active NOVs or NTCs issued under Section 104.13.

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

(a) DCR shall process an Application under this section consistent with Section 104.20(c)(4)(i). Applications that meet the requirements of this section shall be eligible for further processing pursuant to Section 104.06.

(b) Type 10 Application Processing – Round 1.

1. Social Equity Individual Applicant Verification. For a period of 60 calendar days, beginning on a date at DCR’s sole discretion, an individual may apply to be verified as a Tier 1 or Tier 2 Social Equity

Individual Applicant as defined in Section 104.20(a). DCR’s determination of whether an individual is a Social Equity Individual Applicant shall be made with no hearing, is final and not appealable. (Amended by Ord. No. 187,095, Eff. 7/1/21.)

2. Application Period. DCR shall, on a date starting at its sole discretion, accept Type 10 applications for processing under this subsection for a period of 14 calendar days, provided that DCR posts written

notice of the processing period on its website at least 15 calendar days before the start date of the processing period. DCR shall not accept or process applications under this subsection before it has made technical assistance available for a period of at least 45 calendar days to prospective or verified Social Equity Applicants, as defined in Section 104.20.

3. To be eligible to apply in Round 1, an Applicant shall have an individual Owner that is a Tier 1 or Tier 2 Social Equity Individual Applicant verified pursuant to this subsection and who owns an Equity Share

in the Applicant that meets the requirements of Section 104.20(a). An individual may not be the Tier 1 or Tier 2 Social Equity Individual Applicant for more than one Applicant in Round 1. An individual who is an Owner of an EMMD shall not be eligible to be the Tier 1 or Tier 2 Social Equity Individual Applicant for an Applicant, but may be an Owner of an Applicant if otherwise allowed under this article.

4. During the 14-calendar-day application period, an Applicant shall submit, in a form and manner determined by DCR, an application that includes all of the following: (1) a copy of an executed lease agreement

or property deed for its Business Premises; (2) an ownership and financial interest holder form; (3) a financial information form; (4) a Business Premises diagram; (5) proposed staffing and security plans; (6) a dated radius map including horizontal lines and labeling of any sensitive uses relative to a Type 10 License; (7) a labor peace agreement attestation form; (8) an indemnification agreement provided by DCR; and (9) all business records and agreements necessary to demonstrate that a Tier 1 or Tier 2 Social Equity Applicant owns the minimum Equity Share in the Applicant required under Section 104.20. (Amended by Ord. No. 187,095, Eff. 7/1/21.)

5. An Applicant’s Business Premises shall meet the following requirements:

(i) The Business Premises meets all applicable requirements of Article 5 of Chapter X of this Code;

(ii) The Business Premises is outside of a 700-foot radius of another Type 10 Applicant’s Business Premises, as measured in the manner specified in Section 105.02(b) of this Code. If two or more Round

1 Applicants’ Business Premises are within a 700-foot radius of one another, the Applicant who first submitted an application that meets the requirements of this subsection shall be eligible for further processing and all other Round 1 Applicants within a 700-foot radius of the first Applicant shall be ineligible for further processing in Round 1.

(iii) The Business Premises is not subject to a finding of Undue Concentration. For purposes of this subsection only, DCR shall determine whether the Business Premises is subject to a finding of Undue

Concentration based upon the time and date an Applicant submitted an application that meets the requirements of this subsection.

6. The first 75 Tier 1 Applicants and the first 25 Tier 2 Applicants who meet the requirements of this subsection shall be eligible for further processing pursuant to Section 104.06. If less than 75 Tier 1

Applicants meet the requirements of this subsection, DCR may process additional Tier 2 applications, based upon the time and date of application submission, until DCR has identified 100 Tier 1 and Tier 2 Applicants who meet the requirements of this subsection. All Applicants who submitted an application that are not eligible for further processing and qualify under Section 104.06.1(c)(3) may apply for Type 10 Application Processing - Round 2. (Amended by Ord. No. 187,095, Eff. 7/1/21.)

7. DCR shall, subject to review of any applications previously deemed ineligible as described below, process Applications up to and including DCR Record No. LA-C-19-310245-R-APP from the list published

by DCR titled “Phase 3 Retail Round 1 Submissions (09/03/19, 10 a.m. to 09/17/2019, 10 a.m.)”, dated September 26, 2019. Notwithstanding any prior notice and/or action by DCR, a Social Equity Individual Applicant that was deemed ineligible for further processing due to a Community Plan Area having reached Undue Concentration on or after September 3, 2019, the failure to submit proof of deposit, or due to proximity to a Sensitive Use, subject to relocation, may be deemed eligible for further processing if all other requirements are met. Applications deemed eligible for further processing under Section 104.06.1(b)(6) as of January 1, 2020, and Applications deemed eligible for further processing under Section 104.06.1(b)(7) after January 1, 2021, shall not be included in the calculation of Undue Concentration. (Amended by Ord. No. 187,879, Eff. 6/2/23.)

8. An Applicant shall pay all required application fees pursuant to Section 104.19 within 30 days of being issued an invoice by DCR or its application shall be deemed abandoned. (Amended by Ord. No. 186,919, Eff. 2/24/21.)

(c) Type 10 Application Processing – Round 2.

1. Applicant Eligibility Verification. DCR shall establish a 60 calendar day eligibility verification period for individuals to apply to be verified under the revised eligibility criteria in Section 104.20(b). An

Applicant shall pay the SEIA Eligibility Verification Fee pursuant to Section 104.19(a) within 30 days of being issued an invoice by DCR. DCR shall have at least 90 calendar days to determine Social Equity Applicant eligibility which shall not run concurrently with the 60-calendar day eligibility verification period. DCR’s determination of whether an individual is a Social Equity Individual Applicant shall be made with no hearing, is final and not appealable. (Amended by Ord. No. 186,919, Eff. 2/24/21.)

2. Registration Period. DCR shall, on a date beginning at its sole discretion, accept registrations for an Application lottery under this subsection for a period of 30 calendar days from verified Social Equity

Individual Applicants, as defined in Section 104.20(b). DCR shall not accept registrations under this subsection before it has made technical assistance available for a period of at least 45 calendar days to prospective or verified Social Equity Individual Applicants. (Amended by Ord. No. 187,459, Eff. 4/15/22.)

3. Social Equity Individual Applicant. To be eligible to participate in the Application lottery pursuant to Subsection (c)(4), the Applicant shall have an individual Owner that is a Social Equity Individual

Applicant verified pursuant to Subsection (c)(1). The Social Equity Individual Applicant must have a prior California Cannabis Arrest or Conviction and must also meet one of the following two criteria, as defined in Section 104.20(b)(1)(i): (1) Low-Income; or (2) ten years’ cumulative residency in Disproportionately Impacted Area. A Social Equity Individual Applicant shall be disqualified from participating in the Application lottery for any of the offenses specified in Section 104.03(a)(1) or for any of the circumstances in Section 104.03 (a)(2).

4. Application Lottery. Verified Social Equity Individual Applicants who have registered pursuant to subdivision 2 shall be entered into an Application lottery. DCR may identify as many Social Equity

Individual Applicants eligible for further processing through an Application lottery as there are total available Licenses in Community Plan Areas that have not reached Undue Concentration. Social Equity Individual Applicants shall be randomly selected during the lottery, which shall take place at a location, date and time determined by DCR in its sole discretion. DCR shall post a notice at least 15 calendar days prior to the lottery, which shall include the procedures and protocol to conduct the lottery and information regarding how the public can view or live stream the event. Applications drawn at the lottery shall be processed pursuant to Section 104.06.1(c)(5). (Amended by Ord. No. 187,459, Eff. 4/15/22.)

5. Business Premises. Social Equity Individual Applicants selected during the Application lottery shall have until December 31, 2026, to submit their Pre-Application Record using a compliant property in any

Community Plan Area that has not reached Undue Concentration on a first come, first served basis until each Community Plan Area has reached Undue Concentration. Social Equity Individual Applicants shall submit a Pre-Application Record through the DCR Licensing Portal, including all documents as determined by DCR, and pay a Pre- Application Review Fee pursuant to Section 104.19 for DCR to determine the eligibility of a proposed Business Premises location pursuant to Section 104.03(a) and Article 5 of Chapter X of this Code. Pre-Application Records shall be processed by DCR in the order filed. A Social Equity Individual Applicant whose Business Premises location is deemed ineligible under Section 104.03(a) and/or Article 5 of Chapter X of this Code shall be permitted to submit 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 Business Premises location(s) is submitted prior to December 31, 2026. If the Pre-Application Record is eligible for further processing, the Social Equity Individual Applicant shall submit an 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. (Amended by Ord. No. 188,069, Eff. 12/15/23.)

6. Application Fees. An Applicant shall pay all required application fees pursuant to Section 104.19 within 30 days of being issued an invoice by DCR, or the application shall be deemed abandoned. (Amended

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

(d) Type 10 Application Processing – Round 3. (Amended by Ord. No. 188,451, Eff. 12/30/24.)

1. Applicant Eligibility Verification. DCR shall establish a 15 day eligibility verification period for individuals to apply for verification under the eligibility criteria in Section 104.20(a)(3). An Applicant shall pay the SEIA Eligibility Verification Fee pursuant to Section 104.19(a) within 30 days of being issued an invoice by DCR. After the close of the 15 day eligibility verification period, DCR shall review eligibility verification submissions and notify the Applicant by electronic mail if there are deficiencies. The Applicant shall have 7 days from the date of the notification to submit documentation to correct any identified deficiencies. DCR’s determination of whether an individual is a Social Equity Individual Applicant shall be made with no hearing, is final and not appealable. 2. Registration Period. DCR shall, on a date beginning at its sole discretion, accept registrations for an Application lottery under this subsection for a period of 7 calendar days from verified Social Equity Individual Applicants.

   3. Social Equity Individual Applicant. To be eligible to participate in the Application lottery pursuant to Subsection (d)(4), the Applicant shall have an individual Owner that is a Social Equity Individual

Applicant previously verified pursuant to Sections 104.20(a)(1) or (a)(2), or verified pursuant to Section 104.20(a)(3). A Social Equity Individual Applicant shall be disqualified from participating in the Application lottery for any of the offenses specified in Section 104.04(c) or (d).

4. Application Lottery. Verified Social Equity Individual Applicants who have registered pursuant to subdivision 2 shall be entered into an Application lottery. DCR may identify as many Social Equity

Individual Applicants eligible for further processing through an Application lottery as there are total available Licenses in Community Plan Areas that have not reached Undue Concentration. Three separate drawings shall be held: (1) Social Equity Individual Applicants previously verified pursuant to Section 104.20(a)(1); (2) Social Equity Individual Applicants previously verified pursuant to Section 104.20(a)(2); and (3) Social Equity Individual Applicants verified pursuant to Section 104.20(a)(3). A Social Equity Individual Applicant may register for only one drawing. The number of Licenses available in each drawing shall be proportional to the number of registered individuals for that drawing. Social Equity Individual Applicants shall be randomly selected during the lottery, which shall take place at a location, date and time determined by DCR in its sole discretion. DCR shall post a notice at least 15 days prior to the lottery, which shall include the procedures and protocol to conduct the lottery and information regarding how the public can view or live stream the event. Applications drawn at the lottery shall be processed pursuant to Section 104.06.1(d)(5).

5. Business Premises. Social Equity Individual Applicants selected during the Application lottery shall have until two (2) years from the date of the Application lottery to submit their Pre-Application Record

using a compliant property in any Community Plan Area that has not reached Undue Concentration on a first come, first served basis until each Community Plan Area has reached Undue Concentration. Social Equity Individual Applicants shall submit a Pre-Application Record through the DCR Licensing Portal, including all information, forms, and documents, as determined by DCR, and pay a Pre-Application Review Fee pursuant to Section 104.19 for DCR to determine the eligibility of a proposed Business Premises location pursuant to Section 104.03(a) and Article 5 of Chapter X of this Code. Pre-Application Records shall be processed by DCR in the order filed pursuant to Section 104.03(g). A Social Equity Individual Applicant whose Business Premises location is deemed ineligible under Section 104.03(a) or Article 5 of Chapter X of this Code shall be permitted to submit 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 Business Premises location(s) is submitted prior to the expiration of the original two (2) year period. If the Pre-Application Record is eligible for further processing, the Social Equity Individual Applicant shall submit an 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.

6. Additional Application Lottery. If additional capacity is available in any Community Plan Area after a lottery ends, DCR will hold another lottery pursuant to this subsection.

7. Application Fees. An Applicant shall pay all required application fees pursuant to Section 104.19 within 30 days of being issued an invoice by DCR, or the application shall be deemed abandoned.

(e) Type 9 Application Processing.

1. Applicant Eligibility Verification. Social Equity Individual Applicants verified pursuant to Section 104.20(a) may participate in application processing under this subsection. DCR’s determination of whether

an individual is a Social Equity Individual Applicant shall be made with no hearing, is final and not appealable. (Amended by Ord. No. 188,451, Eff. 12/30/24.)

2. Application Period. DCR shall, on a date beginning at its sole discretion, accept applications for processing under this subsection, provided that it posts written notice on its website at least 15 calendar days before the start date of the processing period. To be eligible for processing under this subsection, a Type 9 Applicant shall submit the following application documents: (1) a copy of an executed lease agreement with proof of a deposit or property deed for its Business Premises; (2) a Business Premises diagram; and (3) a dated radius map including horizontal lines and labeling of any sensitive uses relative to a Type 9 License.

   3. An Applicant who submitted a complete application pursuant to Subsection (b) of this section, but was ineligible for further processing because its Business Premises was in a Community Plan Area that

   reached Undue Concentration or was within a 700-foot radius of another Type 10 application, shall receive priority processing for a Type 9 License relative to all other Social Equity Applicants applying for Type 9 License.

   4. Application Fees. An Applicant shall pay all required application fees pursuant to Section 104.19 within 30 days of being issued an invoice by DCR, or its application shall be deemed abandoned. (Amended

   by Ord. No. 186,919, Eff. 2/24/21.)

(f) Non-Retail Application Processing.

1. Applicant Eligibility Verification. Social Equity Individual Applicants verified pursuant to Section 104.20(a) may participate in application processing under this subsection. DCR’s determination of whether

an individual is a Social Equity Individual Applicant shall be made with no hearing, is final and not appealable. (Amended by Ord. No. 188,451, Eff. 12/30/24.)

2. Application Period. DCR shall, on a date beginning at its sole discretion, accept applications for processing under this subsection, provided that it posts written notice on its website at least 15 calendar days

before the start date of the processing period. To be eligible for processing under this subsection, an Applicant shall submit the following application documents: (1) letter from the landlord or other evidence of a legal right to occupy the Business Premises; (2) a Business Premises diagram; and (3) a dated radius map including horizontal lines and labeling of any sensitive uses relative to a Type 10 License. (Amended by Ord. No. 187,095, Eff. 7/1/21.)

3. Application Fees. An Applicant shall pay all required application fees pursuant to Section 104.19 within 30 days of being issued an invoice by DCR, or its application shall be deemed abandoned. (Amended

by Ord. No. 186,919, Eff. 2/24/21.)