The Department of Cannabis Regulation (DCR) has just confirmed that it is now processing requests for ownership changes to existing Phase 2 (non-retail) cannabis licenses in Los Angeles. This long-awaited news is a game-changer for savvy investors and license holders alike, as it opens opportunities to buy or sell shares of the 139 cultivation, manufacturing, and distribution businesses that are licensed under Phase 2 in Los Angeles.
Individuals interested in Phase 3 Retail and Delivery licensing must submit SEP eligibility verification documents for review by DCR Staff.
Why must I complete the SEP Applicant Eligibility Verification Process?
In order to be eligible to apply in Round 1, Round 2 and the Delivery Pilot in Phase 3, potential social equity applicant must complete this.
When must I do this by?
July 29th, 2019 is the deadline.
Who is eligible to participate in the City’s Social Equity Program?
Individuals who are considered low income ($45,644 or less), have past cannabis arrests and or convictions and those that live in Disproportionately Impacted Areas (districts with the highest cannabis-related arrests) are eligible to participate in the City’s Social Equity Program. (https://cannabis.lacity.org/licensing/social-equity-program). Check to see who qualifies for social equity and priority processing for licensing by taking the quiz linked below.
Please see our quiz on eligibility. (click link)
The City of Los Angeles confirms that there is no maximum number of individuals who can be verified during the SEP Eligibility Verification Process. Therefore, it is not too late to be able to apply for a retail license during Phase 3!
What is the SEP?
The SEP provides applicants assistance in navigating the City’s cannabis licensing process – whether it be technical or business related. This is especially helpful for first-time legal cannabis business owners.
However, if you have additional questions on how to operate a licensed cannabis business, please ask our attorneys at Margolin & Lawrence as the Social Equity deadline is quickly approaching! We are proud to be one of the few jurisdictions in the United States that is persistent on addressing those that are disproportionately impacted by the War on Drugs.