Regulation
LA County to License Commercial Cannabis Businesses
Last Tuesday (15th Feb, 2022) the Los Angeles County Board of Supervisors that oversees unincorporated cities announced that they will be moving forward to develop and roll-out a commercial cannabis licensing program. This program is intended to increase the number of retail licenses that are available for adult-use marijuana businesses to operate legally within the county.
California was the first state to legalize medical marijuana back in 1996. The state went further to legalize marijuana for adult-use in 2016, while legal recreational states kicked-off in 2018. In spite of the legal-status of marijuana in California, it is still very difficult to come across a legal recreational dispensary in LA. Most counties have restricted the production and sale of recreational marijuana by limiting the number of licenses. Since 2010, LA has prohibited marijuana cultivation and distribution in unincorporated areas. However, marijuana delivery services are allowed across counties with California.
The board’s decision to increase cannabis licensing in LA comes at a critical time when black market sales are at an all-time high. This move will put an end to the decade-long ban on marijuana related activities.
Even in areas where medical dispensaries are legal, the California weed black market till triumphs. Legal dispensaries have to incur huge startup costs to get up and running. They are also highly taxed and highly regulated making the ground tilt in favor of the black market.
The board hopes to begin with offering a limited number of licenses for the following:
- 25 retail licenses
- 25 delivery licenses
- 10 cultivation licenses
- 10 manufacturing licenses
- 10 distribution licenses
- 10 testing licenses
Equity applicants will be prioritized in the distribution of licenses. The board will also offer educational opportunities and technical assistance to those who will get the licenses.
One of the board supervisors, Holly J. Mitchel, said the following in a statement:
“A cannabis program that is safe, regulated and equitable is necessary for unincorporated L.A. County and for addressing the injustices that have caused communities of color to be disproportionately criminalized and shut out of economic gains from the legalization of cannabis.”
Exposing residents to black-market marijuana poses several health risks and at the same time perpetrates organized criminal activity. This move respects the wishes of California residents who voted in favor of the legalization of cannabis. For now, it is not clear how much longer we will have to wait until these commercial cannabis enterprises go into operation.
