The Social Equity Program
The mission of DCR’s Social Equity Program (SEP) is to promote equitable ownership and employment opportunities in the cannabis industry. The SEP resources and benefits are designed for Social Equity Individual Applicants (SEIA) who may receive certain benefits related to business development training and to application processing, such as:
- Priority filing periods for certain license types until December 31, 2025
- Business, Licensing, Compliance (BLC) and Technical Assistance resources such as business coaching, networking events, and online courses
- Pro bono / Low cost legal services
- Fee waivers/financial assistance, when available, through State grant programs
2025 SEIA Verification Filing Period
At noon, March 17, 2025, DCR opens its Social Equity Individual Applicant (SEIA) Verification window where individuals can request review to become an SEIA. The verification window ends at 4:00 PM, April 1, 2025. The Los Angeles Municipal Code (LAMC) establishes a 15-day filing period. Please note:
- Late submissions will not be accepted.
- There is a 7-day Cure Period - DCR will notify prospective SEIAs if additional documentation is required and allow prospective SEIAs to submit updated documentation within the 7-day cure period.
- The filing fee of $597 must be paid within 30-days of the date an invoice is issued. DCR does not have the funding this time around to offer fee waivers.
- Individuals verified in 2019 and/or 2022 do not need to be reverified to participate in Phase 3 Retail Round 3 retail storefront application lottery. More information on this point is below.
SEIA Verification Criteria
To be verified as a Social Equity Individual Applicant (SEIA), a natural person (Individual) must be considered
- “Low Income” and
- have a qualifying “Cannabis Arrest or Conviction,” as defined by law anywhere in the United States. Please note that these criteria have changed since the last two verification windows in 2019 and 2022.
Criteria Definitions
- Low Income
“Low Income” means both of the following:
- The Individual meets the low-income thresholds established in the annual U.S. Department of Housing and Urban Development (HUD) income limits based upon the Area Median Income (AMI) for the county in which the Person resides or which is closest to the Person’s home address; and
- The Individual does not have Assets in excess of the allowable amount based on Household Size. Please see the drop down menus below for definitions of “Assets” and “Household Size".
- Assets
“Asset” means net assets at or below four times the Low Income thresholds based on Household Size. Examples of liquid accounts that shall be disclosed include but are not limited to, saving accounts, checking accounts, certificates of deposit, money market accounts, stocks, trusts, and gifts.
Note: Qualified retirement accounts and an applicant’s primary residence shall be excluded for purposes of the calculation, but other forms of real estate shall be included.
- Household Size
“Household Size” means the number of individuals that meet any of the following criteria:
- All spouses or domestic partners must be included in the household and must appear in the submission content
- All household members who are under 18 years of age must be the legal dependent of an adult household member, except in the case of emancipated minors, as claimed on the most recent income tax return, or legal minor children of title holders.
- All household members who are under 18 years of age must be the legal dependent or emancipated minor of an adult household member, as claimed on the most recent income tax return.
Temporarily absent household members who intend to live in the residence upon return may be considered, if verifiable documentation supporting their absence is provided. Such household members include, but are not limited to, household members serving temporarily in the armed forces, or who are temporarily institutionalized.
Neither live-in assistants nor foster children will be counted toward Household Size. Individuals not listed on the Social Equity Individual Applicant’s most recent tax return, such as elderly relatives, live-in assistants, and foster children will not be counted toward Household Size.
- A Prior Cannabis Arrest or Conviction
“Cannabis Arrest or Conviction” means an arrest or conviction for any crime under the laws of any State, any of its political subdivisions, or the United States, relating to the sale, possession, use, manufacture, or cultivation of Cannabis.
- A Social Equity Applicant with a Cannabis Arrest or Conviction shall be ineligible to apply for a License in any of the circumstances specified in Section 104.04(c) and (d), subject to the time restrictions therein.
- An arrest, prosecution or conviction for a violation of Proposition D, as codified in former Article 5.1 of Chapter IV of the Los Angeles Municipal Code, notwithstanding that Proposition D has been repealed, is not a Cannabis Arrest or Conviction.
Required Documentation
Low Income Documentation
- Federal Tax Returns - 2023 or 2024 tax returns or IRS Verification of Non-filing documents to evidence your income.
- Please submit the final, filed version of your tax return, including all schedules.
- Requesters that are married and file taxes separately must provide documentation for the Requester and the Requester’s spouse.
- If you did not file a tax return, please use IRS Form 4506-T to order a Verification of Non-filing transcript or Form 1040-series transcripts free of charge. For more information, please visit https://www.irs.gov/forms-pubs/about-form-4506-t
- Asset Attestation (SEP-6003-FORM)
Cannabis Arrest or Conviction
At least one court or government document evidencing the arrest or conviction for a cannabis-related crime.
- A physical copy of the ticket or citation
- Police report documenting the arrest
- A court docket referencing the arrest or conviction
- A letter of expungement from the jurisdiction that expunged your arrest or conviction or arrest record.
General Guidelines on Documentation
- Please ensure each document submitted to DCR is complete. Double-sided documents are often accidentally scanned one-sided, leading to missing pages.
- If the legal name listed on the government records and/or documents you provide differs from the legal name associated with your ACA Reference ID, you must provide supporting documentation to demonstrate the relationship between the two legal names. This may include a birth certificate, marriage certificate, or other government document connecting the names.
- You will be notified if DCR determines there are any deficiencies in your submission. You will have 7 days from the date of the notification to submit documentation to correct any identified deficiencies.
Paying the SEIA Review Fee
When the verification record is submitted:
- An email will be sent to the ACA Reference ID used for the verification process. The email includes:
- A copy of the invoice for the $597 verification fee due within 30 days.
- A guide on how to locate the invoice in ACA (if necessary)
- Instructions on how to pay the invoice
Note: DCR is only accepting payment of the SEIA Verification Fee through LADBS Development Services Centers. Payment will not be available through the Office of Finance.
Individuals Verified in 2019 and/or 2022
Individuals that have already been verified as SEIAs in 2019 and/or 2022 are not required to be re-verified in 2025 to participate in the 2025 Phase 3 Retail Round 3 license application lottery. Three separate lotteries will be conducted:
- one for 2019 SEIAs,
- one for 2022 SEIAs and
- one for 2025 SEIAs.
An individual verified in multiple SEIA verification windows can register for only one lottery and must choose in which year’s pool to participate.
Additional Resources
DCR hosted two webinars that detail the criteria, documentation required and the steps to submit a SEIA Verification Request.
The recorded webinars are available on DCR’s Events page. You can click the links below:
Results of 2025 SEIA Verification Review & List of SEIAs verified in 2019 coming soon. 2022 verification results are below.
To read about the previous round of Social Equity Individual Verification (conducted in 2022), please click here to read about the results, and click here to read about the process.