- Posted by Ryan Reaves
- On June 8, 2017
- ArcGIS, cannabis business, City Controller, City Council, city of Los Angeles, commercial cannabis, draft regulation, los angeles, map of dispensaries, MCRSA, Measure M, medical cannabis, Prop D
City of Los Angeles Releases Draft Regulations, Zoning Ordinance, & Map of Existing Commercial Cannabis Businesses
The June 8, 2017 release of draft regulations for governing the commercial cannabis industry in Los Angeles “sets in motion a 60-day public comment period prior to further action by the City Council”. The initial regulations cover operational standards and requirements for cultivators, manufacturers, distributors, testing facilities, transporters, retailers, and microbusinesses that reflect state regulations under MCRSA, or the Medical Cannabis Regulation and Safety Act. The draft regulations produced by city officials was prompted by Los Angeles voters approving Measure M in March 2017 which established a cannabis tax structure, enforcement procedures, and left all other regulations to be produced by the city and open to public comment.
The City of Los Angeles Cannabis Department will be issuing Commercial Cannabis Activity Certificates of Compliance with priority given to the 135 cannabis collectives currently operating under Prop D immunity from prosecution. The draft regulations prevent foreign companies (out of state and international) from applying for Certificates of Compliance, allows for delivery services associated with brick and mortar dispensaries, bans outdoor and mixed-light cultivation, and prohibits Type 7 manufacturing with volatile solvents. The draft regulations will be subject to public comment for 60 days giving commercial cannabis operators affected by these regulations time to formally submit feedback and participate in public hearings. City officials will be amending the regulations after the public comment period has closed with the goal of having regulations ready for implementation by the January 1, 2018 deadline.
To better understand the “magnitude” of commercial cannabis activities in the City of Los Angeles, City Controller Ron Galperin announced the publication of a detailed map of dispensaries in a letter addressed to Mayor Eric Garcetti, City Attorney Mike Feuer, and the City Council. The website maps all dispensaries operating in Los Angeles who have ever held a Business Tax Registration Certificate (BTRC) and “those that have been subject of action by the Los Angeles City Attorney’s Office”.
The map lists 191 cannabis businesses that have complied with L.A.’s Prop D according to the City’s Office of Finance in 2017, 756 cannabis businesses that held a BTRC in 2016, and a whopping 563 cannabis businesses with criminal cases filed by the City Attorney’s Office. As Los Angeles has also issued its proposal for zoning regulations, the map provided by the City Controller will be an invaluable resource for operators seeking eligible real property.
Economists have estimated that the first year of retail sales in the City of Los Angeles for both medical and recreational cannabis “will likely approach $700 million” which could yield at least $50 million in tax revenue for the city. The letter from the City Controller also recommends the city explore banking alternatives for the industry suggesting “for possible consideration… the creation of a public or quasi-public bank or entity that is structured in such a way to accept cannabis industry deposits.”
If you are a cannabis cultivator, manufacturer, or dispensary and have questions regarding the draft regulations for the City of Los Angeles or are otherwise interested in Cannabusiness, please contact CannaBusiness Law for legal assistance in compliance with cannabis licensing, permitting and the application process relating to commercial cannabis.
Ryan Reaves is a Public Policy Analyst for CannaBusiness Law and Master of Public Policy candidate at Mills College in Oakland, California.