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DCR Recommends Various Changes to LAMC to Address Holes in Current Ordinance

Posted by Meital Manzuri, Esq. | Jun 29, 2020 | 0 Comments

Last week DCR recommended the substantive changes to the ordinance which were accepted by City Council and the proposed ordinance (actual text to become law) was published Friday. City Council will be voting on this Tuesday June 30, 2020.
 
  1. A pathway for temporary approval has finally been created for Phase 3 Round 1 Invoiced Applicants and an additional DCR will process an additional 100 Applicants from Phase 3 Round 1.  These additional 100 applicants will not be included in the calculation of undue concentration.
  2. Beginning on a date of its choosing, DCR will begin accepting applications for delivery licensing, which would be limited to Tier 1 and Tier 2 Applicants until 2025. 
  3. “Equity Share” now requires that Social Equity Individuals have unconditional ownership of their Equity Share and that the CEO or equivalent is appointed by mutual agreement of the parties. 
  4. Applicants or Licensees will be able to move locations contingent on DCR approval and undue concentration considerations.
  5. Changes to SEA Program:
  • Proposed ordinance may grant the ability to transfer ownership from one SEA to another SEA of the same status.
  • New Social Equity eligibility criteria:
  • New definition of equity share, requirement that SEAs maintain voting rights, and are given the highest ranking officer positions;
  • Disproportionately Impacted Areas will be based on Police Reporting Districts instead of zip codes based on the Expanded Social Equity Report; and 
  • New definition of "low income."
6. Limits type 9 and type 10 licenses to SEAs until 1/1/25 essentially removing the pilot delivery program.  Applicants for Phase 3 Round 1 that are not processed will receive priority processing for licenses not subject to undue concentration. (Delivery, non-volatile manufacturing, distribution).
7. Delivery licenses will be offered to SEA soon and are not capped so if you qualify you may be able to apply as soon as this summer.  Manufacturing and Distribution application availability is TBD.
8. Round 2 will be switched from a first come, first served process to a lottery. No location will be needed at the time of application. Eligible applicants will be given 1 year to propose a business premises that is not in an area of undue concentration.
 

About the Author

Meital Manzuri, Esq.

Managing Partner.

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