City of Carson Commercial Cannabis Center Applications are OPEN!

The City of Carson in Los Angeles County is accepting commercial cannabis center applications until April 19, 2018.  The city allows a total of four centers.  Each center can have multiple licenses on one parcel or contagious parcels.  The following are the license types available:

• Type 1A – Cultivation, Specialty indoor (Small)
• Type 1B – Cultivation, Specialty mixed-light (Small)
• Type 2A – Cultivation, Indoor (Small)
• Type 2B – Cultivation, Mixed-Light (Small)
• Type 3A – Cultivation, Indoor (Medium)
• Type 3B – Cultivation, Mixed-Light (Medium)
• Type 4 – Cultivation; Nursery
• Type 5A – Cultivation, Indoor (Large)
• Type 5B – Cultivation, Mixed-Light (Large)
• Type 6 – Manufacturer 1
• Type 7 – Manufacturer 2
• Type 8 – Testing
• Type 11 – Distributor

Where to start: the main application

Filling out this application is the first step in the process. Before getting started, be advised of the following details:

• Commercial cannabis operations require a city issued permit and a state issued license.
• A minimum $25,000 deposit shall accompany a completed application turned into the city to cover city actual costs to review and process the application.
• The application and associated documents submitted to the city are subject to public disclosure.
• The commercial cannabis center has a continued obligation to update the City of Carson Community Development Director within 7 days upon the change of status of any information below (Saied Naaseh can be contacted by telephone at (310) 952-1770 or by email to snaaseh@carson.ca.us).

What are the steps after I submit my application?

Here is the procedure regarding how an application is chosen and what happens after.

1. When you submit an application, a 90-day staff review is completed (although a written notice from the City may extend this timeline).
2. If deemed compliant with requirements, then:
   • A Cannabis Permit Committee (CPC) reviews applications in accordance with the Merit List criteria (see page 10).  
   • The CPC makes recommendations to City Council based on said Merit List criteria.
   • The City Council reviews CPC’s recommendations at a public meeting.
   • Then, the City Council makes decision on whether a Commercial Cannabis Operation Permit (Cannabis Center) will or will not be issued.
   • A development agreement is negotiated and acted upon by the Planning Commission and City Council. Note that initially, only two Commercial Cannabis Operation Permits (for cannabis centers) will be issued, with two more to be issued at a later date.
3. If deemed non-compliant, the applicant will be notified within 60 days. The applicant will have 30 days to resubmit or may submit a new application.  

The application will require you check the applicable types of commercial cannabis operations to use the commercial cannabis center. The options include indoor cultivation, testing, wholesale distribution, manufacturing and mixed light cultivation.  

What are the zoning requirements?

Click through for a map of the eligible and ineligible locations for a cannabis operation.

What other documents do I need to submit?

Please attach the following documents to your application, both for the commercial cannabis center as well as for all commercial cannabis operations presently seeking use of the center. Documentation for commercial cannabis operations, subsequently (at the time of this application) seeking use of the center, shall be timely submitted before any such operations commence at the center.

• Organizational documents: provide a copy of each business entity’s formation and organizing documents, including, but not limited to, articles of incorporation, certificates of amendment, statements of information, articles of association, bylaws, partnership agreements, operating agreements, and fictitious business name statements.
• Foreign Corporation: if any business entity is a foreign corporation, provide a certificate of qualification issued by the California Secretary of State.
• Business Operation: provide a general description of each proposed business operation, including but not limited to:
  • (a) how the proposed operation will operate in compliance with the Carson Municipal Code and state law;
  • (b) the proposed use of all areas on the premises, including but not limited to all specific proposed commercial cannabis uses, storage, lighting and signage.
• Cash Handling Procedure: provide a detailed description, for each proposed business operation, on the plans for handling cash and the plans for transporting cash.
• Cannabis Handling Procedure: provide a detailed description, for each proposed business operation, on the plans for handling cannabis and cannabis products in addition to transporting cannabis to and from the premises.
• Seller’s Permit Number: provide oroof of issuance of a Seller’s Permit Number by the California Board of Equalization and identification of the Seller’s Permit Number for the applicant and each specific commercial cannabis operation (if distinct from applicant). If no Seller’s Permit Number has been obtained, either provide evidence that the applicant has applied for a Seller’s Permit Number from the Board of Equalization, or provide confirmation from the California Department of Taxes and Fee Administration (CDTFA) that the applicant is not required to have a Seller’s Permit.
• Other Licenses or Permits: identify all other licenses or permits for commercial cannabis operations (including non-profit cannabis operations), whether for the City of Carson or for any other licensing or permitting authority:
  • a) held currently by the applicant and any proposed specific commercial cannabis operation;
  • b) pending approval for the applicant and any proposed commercial cannabis operation; or,
  • c) denied to, revoked from or suspended for the applicant and any proposed commercial cannabis operation. If a license or permit has been denied, revoked, or suspended, provide a detailed explanation of the circumstances.
• Physical Description: provide a general physical description of the proposed commercial cannabis center.
• Security Plan: provide a security plan detailing the security measures to be taken, sufficient to comply with all applicable security-related requirements under state and local law, including but not limited to Carson Municipal Code Section 15.120(B).
• Odor Control Plan: provide an odor control plan detailing the odor control measures to be taken, in accordance with the requirements of Carson Municipal Code Section 15.120(C).
• Floor Plan: provide a scaled floor plan, professionally prepared by a licensed civil engineer or architect, for each level of each building that is part of the business site.
• Site Plan: provide a scaled site plan of the business site, professionally prepared by a licensed civil engineer or architect, including, at minimum, all buildings, structures, walls, driveways, parking lots, landscape areas, and boundaries.
• Insurance: provide evidence of compliance with all applicable insurance requirements, applicable local and state law.

What financial information is required?  

The City is also interested in obtaining your financial and business information for your City of Carson application.  Here are the items they require:

• Construction: your estimated budget for anticipated construction and source of funds for the estimated budget.

• Construction Schedule: provide a detailed outline of the proposed schedule for anticipated construction and/or tenant improvements.
• Operations and Maintenance: provide an estimated annual budget for anticipated operations and maintenance (including but not limited to items such as maintenance of equipment, salaries, supplies and materials, property maintenance, fuel) for activities authorized by, or related to, the requested permit.

• Operation Commencement: show the estimated date when operations proposed to be authorized under the requested permit will commence.

• Capitalization: is there sufficient capitalization to provide for both the initial commencement of operations authorized by, or related to, the requested permit, as well as the first three months of the proposed operation.

• Financial Projections: provide four years of financial projections (from the date of this application).

Click through for a full checklist of all required information is included on page 14 of this document.

Additional Applications

The City of Carson also released the following supplemental applications:

• Cultivation – Supplemental Application
• Distribution – Supplemental Application
• Manufacturing – Supplemental Application
• Testing – Supplemental Application

    
The City of Carson also asks that you use these specific forms to comply with section D(5) of the main application.

• Carson Employee/Owner Background application – to be completed by each employee and/or owner of the business and submitted with their business permit application.
• Intelifi Background Waiver – the city verifies background information using Intelifi, and therefore a waiver must be signed by  you and your staff when you submit your business information.
• FCRA Summary of Rights – to be disseminated to each employee and/or owner applying for a background check.  By law, applicants must receive a copy of their FCRA rights since credit reports are run.

What’s next?

Looking for some assistance with this arduous process to make sure you get it right the first time? Contact California Cannabis CPA today to get started.

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