Department of Cannabis Regulation
Phase 3 Retail Round 2 Registration
Technical Assistance Webinar #4
October 12, 2022
Presentation for:
Prospective or verified Social Equity Individual Applicants (SEIA)
Pursuant to Los Angeles Municipal Code sec. 104.06.1(c)(2)
What is Technical Assistance ?
Technical assistance is the Department of Cannabis Regulation’s (DCR) process of providing
targeted support to a group of stakeholders. Common types of technical assistance include, but
is not limited to, webinars, virtual training, email exchanges, or phone calls.
Pursuant to Los Angeles Municipal Code (LAMC) section 104.06.1(c), DCR must make
technical assistance available to prospective or verified Social Equity Individual Applicants for
a period of at least 45 days before opening the lottery registration period.
● DCR formally made technical assistance available on Wednesday, August 31, 2022.
● DCR will hold four Technical Assistance webinars during this required period.
● Tonight’s webinar is our fourth Technical Assistance webinar.
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Technical Assistance Schedule
● Technical Assistance Webinar #1 (August 31): Overview of the lottery and relevant timing considerations
if selected, i.e. one year to complete Pre-Application Review, another year to submit an Application, and
reminder about the State’s provisional license deadline in March 2023.
● Technical Assistance Webinar #2 (September 14): How to proactively prepare for the lottery and/or the
application process if selected, i.e. overview of the BTRC application process and Legal Entity Record
process.
● Technical Assistance Webinar #3 (September 28): Step-by-step instructions on how to register for the
lottery.
● Technical Assistance Webinar #4 (October 12): Overview of Webinars 1-3 and open Q&A regarding the
Phase 3 Retail Round 2 lottery registration process.
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Los Angeles Municipal Code (LAMC)
Sec. 104.06.1(c)(1)
● The Social Equity Program (SEP) commercial cannabis activity application processing for
Type 10 (storefront retailer) Round 2 pursuant to LAMC sec. 104.06.1(c) is commonly
referred to as Phase 3 Retail Round 2 (P3RR2).
● Pursuant to LAMC sec. 104.06.1(c)(1), DCR accepted SEIA eligibility verification requests
for 60 calendar days from May 26, 2022 to July 25, 2022 at 4:00 P.M. Pacific Time (PT).
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Los Angeles Municipal Code (LAMC)
Sec. 104.06.1(c)(1)
● 1,275 SEIA eligibility verification requests, inclusive of duplicate and test requests, were submitted
during the 60-day filing period. To date, 457 individuals have been verified with a a qualifying CA
Cannabis Arrest or Conviction and 30 individuals verified without a qualifying CA Cannabis Arrest or
Conviction.
● Pursuant to LAMC sec. 104.06.1(c)(1), DCR began the 90-calendar-day processing period after 4:00 P.M.
Pacific Time (PT) on July 25, 2022. The LAMC mandated processing period may conclude as early as
October 23, 2022.
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Los Angeles Municipal Code (LAMC)
Sec. 104.06.1(c)
● Pursuant to LAMC sec. 104.06.1(c)(1), DCR accepted SEIA eligibility verification requests
for 60 calendar days from May 26, 2022 to July 25, 2022 at 4:00 P.M. Pacific Time (PT).
● 60-day eligibility verification period for individuals to apply to be verified as a Social Equity
Individual Applicant (SEIA) under the revised eligibility criteria in Section 104.20(b).
○ All SEIA Eligibility Verification Fees were waived through a State funded grant
program.
● 90-day processing period for DCR to determine whether an individual is a SEIA.
○ DCR's determination is final and not appealable.
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Los Angeles Municipal Code (LAMC)
Sec. 104.06.1(c)
● DCR began providing technical assistance to prospective and verified SEIAs on August 31,
2022.
● 30-day lottery registration period for verified SEIAs, as defined in Section 104.20(b) will
open Monday, October 24, 2022 and close promptly on Wednesday, November 23 at 4:00
P.M PT.
● After providing at least 15 days notice, DCR may administer a lottery to identify as many
SEIAs as there are available Licenses in Community Plan Areas that have not reached Undue
Concentration.
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2022 SEP Statuses
● “Unverified” - Unfortunately, the Department of Cannabis Regulation
(DCR) was unable to verify you as a Social Equity Individual Applicant
(SEIA) based on the documentation submitted during the verification
window that occurred between May 26, 2022 to July 25, 2022.
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2022 SEP Statuses
● “Verified - Individual” - Congratulations, you’ve been verified as a SEIA by
the DCR! However, you may not register for the P3RR2 Lottery.
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2022 SEP Statuses
● “Verified - Arrest/Conviction” - Congratulations, you’ve been verified as a
SEIA by the DCR! You may register for the P3RR2 Lottery.
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LAMC Sec. 104.06.1(c) Communication
Type “Unable to Verify”
Unfortunately, the Department of Cannabis Regulation (DCR) was unable to verify you as a Social Equity
Individual Applicant (SEIA) based on the documentation submitted during the verification window that
occurred between May 26, 2022 to July 25, 2022. Under Los Angeles Municipal Code section 104.20(b)(1)(i),
"Social Equity Individual Applicant" means an individual with two of the following three criteria: a prior
California Cannabis Arrest or Conviction, Low-Income and/or ten years' cumulative residency in a
Disproportionately Impacted Area. For the purposes of LAMC section 104.06.1(c), "Social Equity Individual
Applicant" means an individual with a prior California Cannabis Arrest or Conviction and who also meets one
of the following two criteria: (1) Low-Income; or (2) ten years' cumulative residency in a Disproportionately
Impacted Area.
The submitted documentation did not meet these requirements. This determination is final and not
appealable. You may submit a new SEIA eligibility verification request when the process reopens in the
future.
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2022 SEP Status “Unverified”
2022 SEP Status set to “Unverified”
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LAMC Sec. 104.06.1(c) Communication
Type “Verified - Individual”
Congratulations, you’ve been verified as a Social Equity Individual Applicant by the Department of Cannabis
Regulation! At this time, you may apply for the following commercial cannabis activity types: non-storefront
delivery, non-volatile manufacturing, nursery, cultivation processor, distribution, distribution transport-only,
and testing. To access application forms and documents for these commercial cannabis activity types, please
click here.
Please note: pursuant to Los Angeles Municipal Code (LAMC) section 104.06.1(c)(3), you are not eligible to
participate in the Phase 3 Retail Round 2 lottery because you did not submit evidence of a California
Cannabis Arrest or Conviction. For the purposes of LAMC section 104.06.1(c), "Social Equity Individual
Applicant" means an individual with a prior California Cannabis Arrest or Conviction and who also meets one
of the following two criteria: (1) Low-Income; or (2) ten years' cumulative residency in a Disproportionately
Impacted Area.
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2022 SEP Status “Verified - Individual”
2022 SEP Status set to “Verified - Individual”
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LAMC Sec. 104.06.1(c) Communication
Type “Verified - Arrest/Conviction”
Congratulations, you’ve been verified as a Social Equity Individual Applicant by the Department of Cannabis
Regulation! Pursuant to Los Angeles Municipal Code (LAMC) section 104.06.1(c)(3), you are eligible to
participate in the Phase 3 Retail Round 2 lottery (Lottery). To participate, you must register for the Lottery
pursuant to LAMC section 104.06.1(c)(2). To access the Technical Assistance video on how to register for the
Lottery, please click here.
In addition to participating in the Lottery, at this time, you may apply for the following commercial cannabis
activity types: non-storefront delivery, non-volatile manufacturing, nursery, cultivation processor,
distribution, distribution transport-only, and testing. To access application forms and documents for these
commercial cannabis activity types, please click here. Applying for one or more of these commercial
cannabis activities will not prevent you from registering to participate in the Lottery. You may also apply for
these commercial cannabis activities and choose not to participate in the Lottery.
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2022 SEP Status
“Verified - Arrest/Conviction”
2022 SEP Status set to “Verified - Arrest/Conviction”
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Participation in the
Phase 3 Retail Round 2 (P3RR2) Lottery
In order to participate in the Phase 3 Retail Round 2 lottery, an individual must be:
1. Verified as a Social Equity Individual Applicant (SEIA) under LAMC 104.20(b)(1);
2. Verification must include a qualifying California Cannabis Arrest or Conviction* prior to
November 8, 2016; and,
3. At least one other eligibility criteria.
a. 10 years of cumulative residency in a Disproportionately Impacted Area as defined by
police reporting districts; or,
b. Low Income in the 2020 or 2021 calendar year.
Individuals that submitted SEIA eligibility verification requests pursuant to LAMC 104.06.1(c) and meet the
above requirements will be assigned a 2022 SEP Status of “Verified - Arrest/Conviction.”
*An arrest, prosecution or conviction for a violation of Proposition D is not a California Cannabis Arrest or
Conviction.
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2022 SEP Status
“Verified - Arrest/Conviction”
2022 SEP Status set to “Verified - Arrest/Conviction”
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How to Register for a
Business Tax Registration Certificate (BTRC)
Before you can submit a complete business tax certificate application, you will need:
1. An Employer Identification Number (EIN) from the Internal Revenue Service;
a. https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identifi
cation-number-ein-online
2. A California Secretary of State entity number (Sole Proprietorships do not need to meet this
requirement);
a. https://bizfileonline.sos.ca.gov/forms/business
3. A California Department of Tax and Fee Administration (CDTFA) seller’s permit.
a. https://www.cdtfa.ca.gov/services/#Register-Renewals
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Helpful Links
City of Los Angeles Office of Finance - Business Tax Certificate Application Form
https://finance.lacity.org/sites/g/files/wph1721/files/2022-01/2022%20BTRC%20Application.pdf
Email completed Business Tax Certificate Application Forms to DCRLicensing@lacity.org
City of Los Angeles Office of Finance - Business Registration Requirements FAQ
https://finance.lacity.org/faq/business-registration-requirements-faq
Internal Revenue Service starting a business:
https://www.irs.gov/businesses/small-businesses-self-employed/starting-a-business
California Governor’s Office of Business and Economic Development Permit and Regulatory Assistance:
https://business.ca.gov/advantages/permit-and-regulatory-assistance
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Creating a Legal Business Entity Record
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Creating a Legal Business Entity Record
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Creating a Legal Business Entity Record
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Creating a Legal Business Entity Record
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Creating a Legal Business Entity Record
1) ACA Reference Id
a) Enter the Accela Citizen Access Reference Contact ID associated with the legal business entity.
2) Request Equity Share Review
3) BTRC Master Account
4) SOI Entity Number
5) Do you want to designate an Authorized Agent to sign and submit forms and documents to DCR on
behalf of the Applicant or Licensee?
6) Identify Owners, Primary Personnel, and, if applicable, an Authorized Agent.
7) Upload all required ownership, primary personnel, business formation documents, operating
agreements, and if applicable, social equity application specific information, documents, and forms.
a) If you requested “Equity Share Review”, you will be required to upload social equity application
specific information, documents, and forms
8) DCR will generate an invoice for applicable fees based on the selections made during the intake
process.
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Phase 3 Retail Round 2 (P3RR2)
Lottery Registration
From the DCR Licensing Portal home screen, click on “Activities.”
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Phase 3 Retail Round 2 (P3RR2)
Lottery Registration
Click on “Apply for a License.”
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Phase 3 Retail Round 2 (P3RR2)
Lottery Registration
Read the General Disclaimer, check the “I have read and accepted the above terms” box, then click on
“Continue.”
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Phase 3 Retail Round 2 (P3RR2)
Lottery Registration
Click on the triangle next to “Lottery Registration.”
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Phase 3 Retail Round 2 (P3RR2)
Lottery Registration
Select “P3RR2 Lottery Registration Record,” then click “Continue.”
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Phase 3 Retail Round 2 (P3RR2)
Lottery Registration
If your 2022 SEP Status is not set to “Verified - Arrest/Conviction,” you are ineligible to participate in the
Lottery.
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Phase 3 Retail Round 2 (P3RR2)
Lottery Registration
If your 2022 SEP Status is set to “Verified - Arrest/Conviction,” you are eligible to participate in the Lottery
and may click “Continue.”
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Phase 3 Retail Round 2 (P3RR2)
Lottery Registration
Click “Continue” to submit your P3RR2 lottery registration record.
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Phase 3 Retail Round 2 (P3RR2)
Lottery Registration
If your P3RR2 lottery registration record is successfully submitted, a DCR Record number will be assigned.
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Phase 3 Retail Round 2 Lottery
Registration Record Workflow
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Pre-Application Requirements,
Process and Anticipated Timelines
Intermission
5 Minute
Intermission
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Technical Assistance Webinar #4 Q&A
Q&A
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Technical Assistance Schedule
● Technical Assistance Webinar #1 (August 31): Overview of the lottery and relevant timing considerations
if selected, i.e. one year to complete Pre-Application Review, another year to submit an Application, and
reminder about the State’s provisional license deadline in March 2023.
● Technical Assistance Webinar #2 (September 14): How to proactively prepare for the lottery and/or the
application process if selected, i.e. overview of the BTRC application process and Legal Entity Record
process.
● Technical Assistance Webinar #3 (September 28): Step-by-step instructions on how to register for the
lottery.
● Technical Assistance Webinar #4 (October 12): Overview of Webinars 1-3 and open Q&A regarding the
Phase 3 Retail Round 2 lottery registration process.
● Lottery Technical Assistance Webinar (November 9 - Proposed Date): Procedures and protocol DCR will
utilize to conduct the Lottery.
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