Last week (9/13/2020), Herb Wesson held a Zoom meeting to discuss the trajectory of L.A.’s social equity program. Margolin & Lawrence Partner, Raza Lawrence, was in attendance and discusses critical points that were brought up in the meeting.
New Licensing Procedure for All License Types
● Phase 3 Round 2 for storefront retail licenses will be selected by a lottery opposed to the first come, first served selection process utilized during Phase 3 Round 1. Lottery winners will have a period of one year to find a business location in an area that has not met undue concentration.
Los Angeles is revamping its rules for handing out licenses to cannabis businesses, amid anger and disappointment over the tumultuous rollout of a program meant to address the damage done by criminalizing marijuana.
On June 16, 2020, the Los Angeles Department of Cannabis Regulation sent proposed ordinance amendments to the Los Angeles City Council regarding the licensing process for commercial cannabis businesses. Many of these changes will be well received by the industry, but some of the DCR’s new recommendations would create additional problems for the cannabis industry in the City, and could have negative side effects exceeding any benefits. These recommendations are based on our many years of experience representing clients in the cannabis industry and advocating for cannabis policy reform.
It is the Department’s position that immediate and comprehensive amendments are necessary for a more responsible and equitable Licensing and Social Equity Program. The Department of Cannabis Regulation is seeking to improve the administration of the City’s commercial cannabis Licensing and Social Equity Program through a proposed comprehensive reorganization and revision to Article 4, Chapter X of the Los Angeles Municipal Code (Cannabis Procedures Ordinance).