LA Phase 3 Social Equity - Which Zip Codes Qualify? - Feb. 19, 2019
LA Phase 3 - Social Equity Program Zip Codes & Ordinance Update
After Friday’s Rules Committee meeting, many Phase 3 would-be LA cannabis retailers are taking a second look at the Social Equity Program. The current proposal will prioritize Social Equity candidates over general applicants - 40 of the 60 delivery licenses under the pilot program will go to Social Equity projects and the first 100 retailer licenses in L.A. will be issued to Social Equity Program candidates before additional licenses are open to general applicants, if the DCR’s current recommendations pass.
The Rules Committee requested that the City Attorney draft an Ordinance with amendments to the cannabis program including:
Allowing DCR to issue temporary approvals for Phase 3;
Potentially allowing co-locating of stores within 1,000 feet of each other (similar to Seattle’s program);
Creating a Social Equity Registry platform like San Francisco did;
Increasing the limit of delivery inventory to $5,000, consistent with State Law.
By way of background, in order to participate in Social Equity Tier 1 or Tier 2, a certain percentage of your company must be owned by a qualifying Social Equity candidate.
Tier 1 - 51% or more of the company must be owned by a Social Equity candidate
Tier 2 - 33.33% or more of the company must be owned by a Social Equity candidate.
While originally there were separate categories for Tier 1 and Tier 2, DCR has proposed streamlining them and allowing anyone who qualifies by way of one of the three categories below to be considered a Social Equity Applicant. The three categories are:
Low income + prior California cannabis arrest or conviction prior to November 8, 2016
Low income + lived 5 years or more in a Disproportionate Impact Neighborhood
Lived for 10 years or more in a Disproportionate Impact Neighborhood
Which Zip Codes qualify for LA’s Social Equity program?
Note that it is not just the zip codes, but the Police Reporting District that the Applicant must have live in to qualify for the program under the Neighborhood Impact categories.
The Police Reporting District (PRD) is a smaller area than the zip code. For example, 90027 contains many areas that were not disproportionately impacted by the war on drugs (Los Feliz) but a small part of the zip code in East Hollywood qualifies for the program, based on the Police Reporting District.
Note - City Council is considering adding additional zip codes in the San Fernando Valley, Boyle Heights, and Downtown to this list. The DCR analysis is currently underway and I will update with additional zip codes when there is a decision.
LA Social Equity Zip Codes and Police Reporting Districts
|Police Reporting District||Neighborhood||Zip Code|
|155||Downtown (Skid Row)||90013|
|157||Downtown (Skid Row)||90013|
|156||Downtown (San Julian Park)||90013|
|157||Downtown (Skid Row)||90021|
How do I check the Police Reporting District?
You can access a map of LA’s police reporting districts here:
How can I show that I or my business partner qualifies for the Social Equity Program?
Some of the documents you can use to prove you qualify for the Social Equity Program are:
Tax Returns (for low income)
Police Report, Court Records (to show a prior California cannabis arrest or conviction)
Lease or sublease for an address in a Disproportionate Impact Area
Utility Bills or Bank Statements sent to an address in a Disproportionate Impact Area
Lauren Estevez is an attorney who advises international, multi-state and California cannabis brands, operators, and investors. She is nationally recognized as a subject matter expert in Cannabis Law and her work has been featured on CNBC, at SXSW 2019, and in Law360. Lauren is the founder of LME Law.