Los Angeles Cannabis Businesses in Danger of Being Cut Off

by greenrush
los angeles cannabis

On Monday, cannabis advocates and business owners gathered at the Los Angeles City Council Chambers in an attempt to protect their livelihoods. Last Friday, a new draft was released that has the potential to shut down the entire Los Angeles cannabis industry.

 

This draft comes as a blow to the cannabis industry in L.A., one of the largest in the world. Under the new draft, only the 135 existing Proposition D dispensaries will be able to apply for a provisional permit that will allow them to operate while they wait for permanent licensing.

 

This completely excludes growers, manufacturers and testing facilities from operating. They would either be forced to shut down or have to rely on the black market to survive.

 

Exactly how long does it take to get permanent licensing? The answer is bleak. Anywhere from four to nine months, which could see a lot of small businesses fail by the time they get their license.

 

But the draft has further reaching effects too. Not only would many businesses be forced to shut down, but those that do survive will be forced to turn away from local suppliers. This will reduce the quality of the product on the shelves of dispensaries. L.A. will also miss out on a significant portion of tax revenue it has been expecting from legalization. Not to mention the huge layoff of employees that can be expected to happen if businesses are forced to shut down.

 

City Council President Herb Wesson has said, "I recognize that there's a flaw. I'm going to address it," however, there's been no concrete plan as to how this will happen. Wesson suggested that there may be a grace period, in which businesses would be allowed to remain open whilst going through the licensing process. If this happens, it might protect small businesses from failing and shutting down. However, it is not yet set in stone.

 

It remains to be seen how this new draft will affect business in the L.A. area and what measures will be put into effect to help protect them. However, regulations are expected to appear for a vote before the full Los Angeles City Council next week.

 

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