LOS ANGELES CANNABIS
LICENSING GUIDE
Disclaimer: The content found in this document are for educational
purposes only. Please consult with your attorney before taking any
action regarding your application or cannabis delivery business.
LOOKING TO START A CANNABIS DELIVERY IN LA?
Goals:
•Understanding Delivery (Type 9) vs. Dispensary (Type 10) business
models in California
•How to apply for a local cannabis delivery license with the City of Los
Angeles
•How to apply for a state cannabis delivery license with the BCC
Type 10 Licenses
• A storefront retailer (Type 10) licensee sells cannabis goods to
customers at its premises or by delivery. A storefront retailer must
have a licensed physical location (premises), including address, where
commercial cannabis activities are conducted.
• Applicants that are invoiced through Round 1, the additional 100, and
Round 2 will be applying for a Type 10 license with the state cannabis
licensing authorities.
Type 9 Licenses
• A non-storefront retailer (Type 9) licensee sells cannabis goods to
customers exclusively through delivery. A non-storefront retailer must
also have a licensed premises to store the cannabis goods for delivery.
The premises of a non-storefront retailer shall not be open to the
public. Applicants that aren’t invoiced through Round 1, the
additional 100, and Round 2 are eligible to apply for a Type 9 delivery
license.
Why choose delivery in LA?
• The City of Los Angeles is making an unlimited number of delivery
licenses available. These licenses do not apply to PCN requirements.
• Licenses are available only to social equity applicants until January 1,
2025.
• Owning a delivery service is more cost effective than having a
dispensary. Take into account your month-to-month costs to manage
and maintain the infrastructure of your dispensary. Delivery services
require much less in maintenance costs, improving profit margins and
potential for scalability. Consumer trends are shifting towards delivery
- the ongoing pandemic has shown us how vital and convenient it is
to have cannabis delivered.
Applying for a license in Los Angeles
• The Application Window for Delivery licenses in the City of Los Angeles
opens on Tuesday, October 20th, 2020 at 2PM PST. Applicants apply using
the DCR (DEPARTMENT OF CANNABIS REGUALTION) website. Timeline.
• All applicants that meet the requirements under the original SEP Eligibility
criteria or under the new, expanded criteria of a “Social Equity Individual
Applicant,” are eligible to apply for a license.
• Does not require secured property or executed lease
• Landowner attestation recommended
• IMPORTANT : To begin the licensing process, you will need to file for a
Pre-Application Review. This is the form that you will be required to
submit come October 20th, 2020.
Fee schedule for Retail (Los Angeles)
Pre- Application Review
• The Pre-Application Review process is implemented by the DCR to verify 3
things related to the application: Owners, Primary Personnel, and
Property Eligibility
Forms Associated with the Pre-Application Review Process
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List of Primary Personnel and Owner(s) (LIC-4003-FORM)
Primary Personnel and Owner Attestation (LIC-4004-FORM)
Ownership and Financial Interest Disclosure Form (LIC-4008-FORM)
Radius Map Attestation (LIC-4009-FORM)
Business Premises Diagram
Dated Radius Map
Site Plan
Pre-Application Walk-through
• LINK: https://aca-prod.accela.com/LADCR/Default.aspx
Pre-Application Walk-through
• LINK: https://aca-prod.accela.com/LADCR/Default.aspx
Pre-Application Walk-through
• LINK: https://aca-prod.accela.com/LADCR/Default.aspx
Pre-Application Walk-through
• LINK: https://aca-prod.accela.com/LADCR/Default.aspx
Pre-Application Walk-through
• LINK: https://aca-prod.accela.com/LADCR/Default.aspx
Pre-Application Review Workflow
• LINK: https://aca-prod.accela.com/LADCR/Default.aspx
“I HAVE BEEN APPROVED!!! What’s next?”
• Once you receive your Determination of Eligibility, you may proceed
and apply for Temporary Approval with the city.
• There will be a window of time for you as the applicant to make
business decisions and make adjustments before applying for
Temporary Approval.
• The Temporary Approval process requires site-specific inspections; It’s
recommended to have property secured before submitting your
Temporary Approval application.
Applying for Temporary Approval
• In some instances, you will be required to follow the procedures found in the Social Equity Program
- Entity Verification and Procedure Bulletin, which is used to ensure your application meets the
minimum requirements for Equity Share compliance.
Forms Associated with the Temporary Approval Process
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Financial Information Form (BCC Form)
Indemnification Agreement (LIC-4005-FORM)
Labor Peace Agreement (LIC-4006-FORM)
Landowner Attestation (LIC-4007-FORM)
Ownership and Financial Interest Holder Form (LIC-4008-FORM)*
Radius Map Attestation (LIC-4009-FORM)*
Statement of Intended Use (LAFD Form) •
Security Plan (BCC Form)
Temporary Approval Attestation (LIC-4010-FORM)
Social Equity Program - Owner Compliance Attestation (LIC-4011-FORM)
These documents are required during the Pre-Application Review Process and do not need to be re-submitted during the
Temporary Approval Process unless the Applicant wishes to revise or update
Applying for Temporary Approval (contd.)
Documents Required
• Business Formation and Organization Documents
• Equity Share Documents**
• Business Premises Diagram*
• Business Tax Registration Certificate (BTRC)
• Certificate of Occupancy
• Dated Radius Map*
• Executed Lease Agreement or Property Deed
• Site Plan*
Temporary Approval Workflow
Confirmation of Local Authorization by the DCR
• If your invoice is paid and the DCR determines your application is
complete, they will verify your application with a Confirmation of
Local Authorization.
Three Outcomes
• In compliance
• Local Compliance Underway
• Not in compliance
If the DCR responds with the verification “Local Compliance Underway”,
you can begin the state licensing process and prepare for your Initial
Inspection.
Applying for a license with the State of California
Before jumping into the state’s licensing procedures, I have to
introduce you to the 3 state cannabis authorities.
1. Bureau of Cannabis Control (BCC)
- The Authorities Primary interface for your delivery applications
2. California Department of Food and Agriculture (CDFA)
- Administrators for METRC (California’s Seed-to-Sale Tracking
Software)
3. California Department of Public Health (CDPH)
After Local Authorization
Upon receiving your verification of “Local Authorization Under Way”
from the DCR, you can apply for your state license through the BCC’s
Online Licensing Portal, which also utilizes Accela for your application.
It is important that you do not apply for a state license until you
receive confirmation from the DCR that your Temporary Approval
documents are deemed complete.
If you apply too early, the State may check in with the DCR
prematurely, resulting in the rejection of your state application.
Documents Required
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Annual Cannabis Retailer License Application
Instructions for Completing the Owner Submittal
Owner Submittal
Financial Information Form
Premises Diagram • Transportation Procedures Form
Inventory Procedures Form
Non-Laboratory Quality Control Procedures Form
Security Procedures Form
Delivery Procedures Form
Licensee Bond Form
CEQA Project-Specific Information Form
CEQA Exemption Petition Form
Bureau Notification and Request Form
Other requirements to consider
Surety Bond State Requirement
The applicant must hold a $5,000 surety bond payable to the State of
California. The surety bond is to cover the destruction of cannabis and
cannabis goods if necessitated by a violation of the licensing
requirements.
For Delivery Operators Only
The state requires applicants to file a Delivery Procedures Form, which
lines out your Standard Operating Procedures for customer delivery.
CA State Licensing Fees
• Fees for operators are applied on a sliding scale, depending on your
expected gross revenue for the 12-month period of your license.
NEXT STEPS
Once your application is submitted and all applicable fees are paid, the
BCC will process your application. If all checks out and your application
is complete, the BCC will issue you your Type-9 Retail Non-Storefront
license. Average turnaround time for the BCC to process your
application is 30 to 60 days.
RECEIVING YOUR LICENSE
If all checks out and your application is complete, the BCC will issue you
your Type-9 Retail Non-Storefront license.
CA STATE LICENSE WORKFLOW
FINAL STEPS
1. Submit Your State-Issued License and Indemnification Agreement to the
DCR
When you receive your state-issued license, you will submit a copy of your license to the DCR and an indemnification agreement
between your business and the City of Los Angeles.
By submitting your state license to the DCR, you move forward with the City’s Temporary Approval Process.
2. Schedule Your Initial Inspection
After submitting all forms required by the DCR, an Initial Inspection is required to push your application through the Temporary
Approval Workflow
Preparing for Your Initial Inspection (City-Level Action Item)
Applicants can schedule their Initial Inspection by emailing dcrlicensing@lacity.org with the subject line “Request for Initial Inspection
- [ YOUR APPLICATION NUMBER HERE ]”
I recommend that you review your Initial Inspection Checklist (LIC-4001-CKLIST)
3. Activate Your METRC Account (California’s Seed-to-Sale Tracking
Software)
Register and Complete METRC’s “Account Manager System Training”
Email METRC at support@metrc.com requesting for your Login link and credentials for your Account Manager System Training using
the same email account you registered with. You will receive credentials in 2-3 business days.
You will need your State-Issued License Number to Access the Training
Complete METRC training and begin setting up your account
Your LAFD Inspection
• Upon passing your LAFD Inspection, you’ve essentially completed the
Temporary Approval Process.
• Upon receiving your Temporary Approval from the DCR you should
have both Local and State Level Authorizations to conduct business as
a Cannabis Delivery Operator
• All you have to do is wait to be notified by the DCR of your Temporary
Approval
Before You Open Up Shop
• Complete Your Cal/OSHA 30-Hour General Industry Training
Requirement
Required for any cannabis-touching business with more than 2
employees
• Fully Set up Your METRC Account
Add Your Employees
Add Your Inventory
Order Your METRC Tags