Los Angeles Marijuana Business at Boiling Point — Cannabis Law Group’s Health-related Marijuana Legal Weblog — July 25, 2019


Ever given that cannabis was legalized in California in January 2018, a flood of marijuana enterprises have opened, hoping to take their share of the pot market place. But it is no secret that numerous business stakeholders are unhappy with the present state of affairs.

These days there are 182 licensed marijuana dispensaries operating all through Los Angeles, and numerous of these company have paid properly into the tens of thousands of dollars to operate legally. Initially by registering their organizations and covering licensing charges, then paying city taxes and continually meeting strict security requirements imposed by the state.

Meanwhile, there are numerous other outfits operating slightly a lot more beneath the radar. They are in a position to skip paying licensing charges and, as predominantly money run enterprises, also steer clear of paying taxes. To the aggravation of legal company owners, rouge pot shops attract a slew of prospects with undercut pot rates, rates that legal outfits have a difficult time matching provided their greater operating charges.

Although regulation of cannabis use and sale continues to undergo assessment and tweaking in the state of California, numerous licensed cannabis company owners have reached boiling point. The largest cause, illegal pot shops continuing to operate comfortably, with small stress from state authorities requiring them to toe the line.

Fed Up Stakeholders Taking Action
The California Minority Alliance (CMA), disenchanted by the city’s efforts to deter illegal pot shops from trading, has created its plans to sue City Lawyer Mike Feuer’s workplace, properly recognized. The CMA contends the city has basically ‘ignored’ South Central L.A. even though claiming to clamp down on unlicensed marijuana shops all through the city.

Similarly, the Southern California Coalition (SCC) penned a letter to Feuer’s workplace, outlining techniques it advised could assist close down a higher quantity of illegal cannabis enterprises. Although these actions reflect a collective aggravation, other business insiders note it is not the city attorney’s job to charge criminals with felonies.

For legal marijuana company owners, maybe there is a glimmer of hope on the horizon although. This April, Feuer’s workplace filed a very first-of-its-sort civil lawsuit against a blatant illegal cannabis outfit, Kush Club 20. The case seeks to slap Kush Club 20 with the Proposition M outlined consequence of a $20,000 per day fine, for operating with out a license. No doubt the business will watch with good interest to see how the court guidelines, prior to figuring out no matter if it tends to make economic sense to duplicate related suits against other major time offenders.

New Permits Up For Grabs Quickly
Beneath Phases 1 and two, the Los Angeles Division of Cannabis Regulation (DRC) has authorized a total of 297 license applications. Phase three, slated to launch in September, will grant a lot more social equity permits and for the very first time will also open licensing up to the basic public.

Far more Speed Humps Probably in the Road Ahead
But not so quick. Cat Packer, DRC director, believes Phase three timing could be pushed back, and that the city could attain an ‘undue concentration’ limit for permits, triggering a cap on license approvals. This will imply these wanting/needing cannabis permits to continue company operations, could:

  • have to wait longer than anticipated to get licensed, risking economic consequences for operating illegally in the meantime, and
  • be unpleasantly shocked to uncover there are not adequate permits to go about for all who apply for them.

As discussions continue surrounding the regulation of cannabis sale and use, it is clear there is nevertheless a incredibly extended way to go prior to discovering a mutually agreeable answer.

Want Legal Aid For Your Marijuana Enterprise?
Our Orange County cannabis company attorneys can assist answer any concerns you could have.

The Los Angeles CANNABIS LAW Group represents growers dispensaries, ancillary organizations, individuals and these facing criminal marijuana charges. Contact us at 714-937-2050.

Further Sources:
Proposition M (Adopted by the voters of Los Angeles at the Election on March 7, 2017), Ordinance No. 184841


Latest posts