Application Requirements for Phase 3

Posted by Xochilt Gama on August 5, 2019

Requirements for Phase 3 Application

 

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On September 3, 2019, the long-awaited Phase 3 Retail Licensing phase will open in the City of Los Angeles. As the opening date quickly approaches, we have compiled a list of requirements needed to submit a complete application for Round 1. For those familiar with the application process for Phase 1 and Phase 2, the application process will be similar to the application process for both phases. However, in addition to the requirements needed for Phase 1 and 2, Phase 3 applicants will also need to submit a proposed retailer plan. Here is a list of the majority of the requirements applicants will need to submit as part of the Phase 3 Retail application process:

● Applicant’s name

● Information regarding the business premises (physical address, telephone number, email address, etc.)

● Applicant’s organizational structure for the commercial cannabis business

     ○ Formation documents

     ○ Documents filed with the State of California

     ○ Proof of Tier 1 or Tier 2 Applicant verification from the DCR

● Financial Information Form

● Evidence the Applicant has a legal right to occupy and use the business premises

     ○ A copy of the title, deed, or lease agreement

     ○ If the applicant is not the landowner, the Applicant will also need an affidavit signed by the landowner acknowledging that the applicant may use the property for the Commercial Cannabis Activity

● Staffing plan and organizational chart that outlines the positions and responsibilities of each employee, as well as the reporting or supervisory structure for each employee

● Detailed business premises diagram

● BTRC, a valid seller’s permit, and a Federal Employer Identification Number (EIN)

● Indemnification agreement

● Description of the Applicant’s practices for allowing individuals access to the limited-access areas of the business premises

● Security plan that includes a description of the Applicant’s surveillance system, how the applicant will ensure that all access points to the business premises will be secured, and a description of the Applicant’s fire proof safe, if applicable.

● A detailed description of how the Applicant will meet the State of California and DCR’s track-and-trace, inventory, returns, destruction of products, waste management, environmental sustainability, records retention, and operational requirements.

● Dated Radius Map of premises showing adequate distance from sensitive use areas

● Labor Peace Agreement (LPA)

● Comply with Parking Requirements

● Ownership & financial interest holder form

 

In addition to the above-mentioned requirements, Applicants in areas that have already met the undue concentration cap will need to get approval from the City Council and show that placing a storefront at the proposed location will “serve public convenience or necessity.” What does this mean? An applicant who has their proposed business located in an undue concentration will need to obtain the approval from their local council member in order to have their license approved. Accordingly, Applicants interested in obtaining a Phase 3 license in an area that has already met the undue concentration cap are in a much better position to do so if they hire an experienced law firm to represent them and lobby on their behalf.

Finally, for those investors interested in joining forces with social equity applicants, there is still time to do so. According to the Department of Cannabis Regulation, more than 1,200 participants submitted their materials statewide. If you are interested in applying for a Phase 3 licensing application and do not have a social equity applicant, contact our office to obtain more information on how to proceed

 

 

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This blog is not intended as legal advice and should not be taken as such. The possession, use, and/or sale of marijuana is illegal under federal law.