LA Phase III: Social Equity Verification OPEN

The Department of Cannabis Regulations (DCR) in the City of Los Angeles drafted an update, opening the Social Equity Program (SEP) verification process window until Monday, July 29th. The verification process is required for all potential Social Equity Applicants who intend to apply for Phase III licensing.

The key point of the Phase III licensing program is the Social Equity Program (SEP). If you want to apply for a dispensary, you have to be a social equity applicant or team with one. In order to apply, you or your partner would have to fit within three categories. First one is that the person is low income with a prior California cannabis arrest or conviction. If you had an attorney that got your charges dismissed, you can still qualify as long as you were arrested, and that needs to be before licensing started. The second category is residing in a disproportionately impacted area for five years plus being low income. The third category is residing in a disproportionally impacted area for 10 years and that does not require low income. 

Determining the neighborhoods that qualify as disproportionately impacted, there is a list of zip codes in the ordinance, but you also need to verify that you are in the police reporting district that has a disproportionate number of arrests. For low income, it’s approximately $45,644 per year for the past two years In LA.

If your goal is to be awarded a retail license in Los Angeles, it is in your interest to participate in the Social Equity Program. To qualify, you do not yourself need to actually qualify for SEP. You can partner with someone who does and Tier one and Tier two of the Social Equity Program require 51% ownership by Social Equity Applicants for Tier one and Tier two is 33.33%. As long as you meet these requirements, you’ll be in the running!

MJ Legal is now offering Social Equity Applicant verification, as well as Social Equity matchmaking for Cannabis entrepreneurs!

If you would like more information about Phase III Cannabis licensing, please call us at 310-893-3262.

We look forward to working with you!

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