September 1, 2020

The New LA Ordinance

Our live Q&A on August 13th was a hit! We covered a variety of topics on how the new LA Ordinance and Fee Schedule affect every L.A. operator, from Temporary Approvals and proposed locations to relocations, ownership transfers, and Social Equity Tiers.

Don’t worry if you missed the live session! Questions & Answers from the session can be found below, click on each question to see the relevant clip. As always, you can contact us for a consultation to discuss your particular legal needs.

  1. The deadline to submit a Notice of Intent to Relocate was on July 19, 2020 for Phase 2 business without Temporary Approval. Has DCR provided additional information about next steps?
  2. Should Phase 1 & 2 applicants who have already received Temporary Approval but want to move start looking for proposed facilities now?
  3. The new ordinance indicates that any property that was previously the site of unlicensed cannabis activity will be deemed ineligible and the application denied.
  4. How can applicants vet their proposed location to ensure it was not previously used for unlicensed activity?
  5. What’s the best way to find a cannabis-friendly landlord or realtor? 
  6. Does the new ordinance limit expansion for licensees? 
  7. Will the applicants who were deemed ineligible for further processing in the first 100 be revisited/reprocessed in the additional 100? 
  8. When can Phase 3 Round 1 applicants expect to be inspected? 
  9. Will applicants who were not invoiced in Phase 3 Round 1 receive any sort of priority in the Phase 3 Round 2? 
  10. Can Phase 2 applicants change their Social Equity Tier?
  11. Can Phase 3 Round 1 applicants transfer ownership from one Social Equity Individual Applicant to another?
  12. How would I know if my application was deemed ineligible for further processing due to a sensitive use violation or undue concentration cap in Phase 3 Round 1?
  13. I am changing some of the terms of my agreement with my landlord. Does the DCR need to approve these changes?
  14. Is there a relocation fee?
  15. Can Social Equity Individual Applicants replace their investors?
  16. Does anything in the ordinance indicate when the next Social Equity vetting window will open? Has DCR provided any guidance?
  17. My company’s ownership structure has changed. Will I need to submit a new application?
  18. Can applicants who received invoices in Phase 3 Round 1 also apply in Phase 3 Round 2?
  19. Does anything in the ordinance prohibit an individual owner from owning multiple licenses?
  20. I am replacing my investor. What does the DCR require?
  21. Consultation and fees for our officePlease clarify the cap on licenses by an individual owner. Is this for all license types? What if I own less than 20%?
  22. Please clarify the cap on licenses by an individual owner. Is this for all license types? What if I own less than 20%?
  23. My application should be processed in the additional 100. To expedite processing, should I hold onto my original location or look for another?
  24. I want to relocate. Am I limited to the same community plan area?
  25. Were Phase 3 Round 1 applicants also required to submit a Notice of Intent to Relocate before July 19th?
  26. Aside from preparing state applications, what can Phase 3 Round 1 invoiced applicants do now?
  27. I am expecting my application to be processed in the additional 100. Should I start looking for a property now? How much time will DCR give applicants to find a property?
  28. Does anything in the ordinance limit management fees?
  29. Can any council member approve a PCN application? Will applicants who are “bumped out” by another applicant within 700 ft be given the opportunity to move or will the application be deemed ineligible for further processing? 
  30. Will applicants who are “bumped out” by another applicant within 700 ft be given the opportunity to move or will the application be deemed ineligible for further processing? 

Disclaimer: This article has been prepared and published for informational purposes only and is not offered, nor should be construed, as legal advice.

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