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Important Information for Los Angeles Phase II Licenses

| Dec 13, 2019 | News

By Michael Chernis, December 12, 2019.

Upcoming Deadline Extended for Phase II Applicants:

All Phase II applicants: rest easy for the holidays, but plan and prepare big for the new year.

Los Angeles Department of Cannabis Regulation (DCR) on December 11, 2019 has granted every Phase II applicant who has not yet received Temporary Approval for Non-Retailer Commercial Cannabis Activity an extension of the deadline to request a DCR inspection, from December 13, 2019 to March 01, 2020. Furthermore, the deadline to pass the inspection has been extended from December 31, 20to March 31, 2020.  The full release by DCR can be accessed here

DCR granted this extension after recognizing challenges Phase II applicants faced to pass a DCR inspection by the end of 2019. However, this extra time likely means DCR will have higher expectations when conducting its inspections.

Inspection Details: How to Request and Next Steps After Inspection

To request a DCR inspection, email [email protected] with the subject line “Request for Pre-Licensing Inspection. Application No. LA-C-18-XXXXXX-APP.”

After requesting a DCR inspection, within 1-2 weeks DCR will email back with potential inspection dates, and requesting you provide DCR the following:

1. A current premises diagram reflecting the facility as it is built-out, and
2. A lease or purchase agreement for your premises.

After you reply with the requested information, DCR will send a final email confirming the date, time and address for your appointment (your premises address).

To move onto the next step of Phase II licensing, you must complete TWO inspections: DCR and Los Angeles Fire Department (LAFD). You must complete both by March 31, 2020. Each inspection has a different focus, detailed below.

After DCR’s inspection, a copy of your DCR inspection checklist will be uploaded to your Accela portal, informing you of any noted deficiencies. Whether those deficiencies will be correctable depends on their severity (see the sample checklist for examples). However, you must later correct these deficiencies and schedule a subsequent inspection to confirm their correction.

After your LAFD inspection, LAFD will notify DCR. Any LAFD deficiencies will also have to be corrected, and another inspection scheduled with LAFD to confirm their correction.

Once you have completed both the DCR and LAFD inspection, DCR will email you a request to send DCR a copy of your State license. After you send DCR a copy of your state license, DCR will issue your Temporary Approval, allowing you to apply for and receive a Phase II annual license.

DCR Inspection: DCR has circulated a checklist of items (see below) they will be examining during inspection. We suggest you review it carefully. DCR’s primary focus will be on potential for crime or diversion of cannabis, so ensure your facility is built-out as described in the premises diagram given to DCR and your security system is functional.

On inspection day, DCR requests that you prepare the following for convenience of the inspectors:

1. Have a hard copy of your current premises diagram on hand at the facility.
2. Have your designated Point of Contact be on the premises.
3. Have the security camera room and footage be available for viewing.
4. Give timely, unrestricted access to the business premises.

Fire Inspection: LAFD’s inspection will focus primarily for your premise’s safety for its inhabitants and risk for fire.

Information about LAFD’s inspection, including an inspection checklist, can be found at Email [email protected] for information about LAFD’s inspection, or Johnny Gatlin, an LAFD inspector for the San Fernando Valley, [email protected]. If permits or fire approval is required (e.g. for a CO2 extraction system), email [email protected].

If you would like assistance with this process, or have any questions about Phase II, please let us know

Michael Chernis