Los Angeles Phase III Update

Last week, on March 8th, 2019, the Los Angeles Department of Cannabis Regulation (DCR), the entity responsible for the administration of the City’s commercial cannabis licensing and regulatory program has issued a statement regarding commercial cannabis licensing.

For the last several months, DCR has been diligently processing applications for Phase 2 Priority Processing for non-retailer commercial cannabis activity. 

Last week, the Los Angeles City Council requested the City Attorney to prepare an ordinance to make several significant amendments to the City’s commercial cannabis licensing system

Chief among them is an overhaul of the application process for Phase 3 storefront retail licenses.

In short, DCR will be directed to process an initial group of 100 retail storefront applicants who have been pre-verified as Tier 1 or Tier 2 Social Equity Applicants and who have secured a property for their business and meet several other requirements. DCR will then suspend further storefront retail application processing until it finishes developing business, licensing and compliance assistance programs for Tier 1 and Tier 2 Social Equity Applicants. After that programming is available, DCR will proceed with processing an additional 100 Tier 1 and Tier 2 Social Equity storefront retail applications. DCR will also be directed to launch a pilot program for delivery-only licenses that will include 40 Tier 1 and Tier 2 Social Equity Applicants and 20 non-Social Equity Applicants. 

This means that the City of Los Angeles will process Social Equity Applicants for storefront retail first, and the DCR will likely not start processing General applicants for storefront retail until they have completed the processing of most, if not all Social Equity Applicants. Applications for non-storefront operations are expected to be accepted for all applicants when Phase 3 opens.

If you would like to start the application process for Los Angeles, please contact MJ Legal to schedule a consultation today. Our services include:

  • City & State Cannabis Business Licensing
  • Business & Operations Financing
  • Investment Opportunities
  • Property Acquisition
  • Corporation Formation
  • Property and Zoning Analysis
  • Business Consulting
  • Trademark & Brand Protection
  • Business Acquisitions

If you have a need for any of these professional services or would like to discuss the opportunities within the cannabis industry, it would be a pleasure for us to schedule an appointment with one of our California licensed attorneys.

For more information, please call us at 310-893-3262

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