There are a few regulatory changes underway as well as some impending deadlines at both the state and local levels that we want you to be thinking about over the next few weeks.
DCC Manufacturing and Distribution Deadlines
Per DCC deadlines, applicants must have a DCC issued provisional license by June 30, 2022.
All (non-social equity) manufacturing and distribution applicants who have applied for a provisional license need to be working diligently towards obtaining this. Per DCC deadlines, Applicants must have a DCC issued provisional license by June 30, 2022.
DCC Provisional Cultivation Deadlines
All (non-social equity) cultivation applicants must apply and pay for their provisional license application by June 30, 2022. These provisional cultivation applicants will then have 90 days, until September 30, 2022, to work towards obtaining a DCC issued provisional license.
We cannot stress this enough – these deadlines are absolutely crucial to meet.
LA DCR CEQA Announcement
If your business currently has been granted Temporary Approval by the DCR in the City of Los Angeles, last week you should have received notice of the DCR’s new to-be implemented California Environmental Quality Act (CEQA) process. This notification came a bit prematurely (imo), alerting licensees that the DCR is in the process of finalizing documentation (FORM-LIC-4013) and CEQA analysis guidance.
We do not have all the details, but what we do know is that each project site will be required to submit the DCR FORM-LIC-4013, which essentially will be a project description of the site. If the City agrees that the environmental impact of the business at that project site is low, they will grant you a CEQA Notice of Exemption. If they determine that more analysis is required, they will contract with a third party (of their choice) to conduct further environmental analysis. This further analysis will certainly be accompanied by a series of fees, which we have not been privy to yet.
Further guidance on the required DCR CEQA documentation will reportedly be available at the end of this month. We will be sure to keep you updated and will handle the process when it becomes available.
Social Equity Verification Program Reopening May 26, 2022 and closing July 25, 2022
Finally, the DCR announced they are opening a new verification period for individuals to be verified as Social Equity Individual Applicants (SEIA). SEIA’s must meet two of the three following criteria:
1. Have a California cannabis arrest or conviction,
A. This may also be a Federal arrest or cannabis conviction, if the arrest/conviction occurred in California,
AND one of the below:
2. Low Income
A. Income not to exceed the Low Income threshold based on Household Size. National Medium Income Ratio for the Year ($60,000) and SEIA’s cannot have assets equal to 4x the medium income,
3. Ten Years’ Cumulative Residency in a Disproportionately Impacted Area.
A. The SEIA will need to show evidence of residency in a disproportionately policed/impacted area of Los Angeles.
We encourage all potential SEIA to reapply for verification under the new revised conditions.
In fact, if you were previously verified as SEIA in 2019 and want to pursue a retail storefront license application as part of the Phase 3 Retail Round 2 lottery, you need to be verified again with the updated criteria in order to qualify.
Remember, cannabis business licenses for retail, delivery and cultivation are exclusively available to verified Social Equity Individual Applicants until January 1, 2025.
We understand there are a lot of ongoing changes, but we are always here to help!
Do not hesitate to reach out to our California cannabis law firm if you have any questions or concerns.