Until recently, the Wild West of U.S. cannabis lacked robust statewide regulations which left California cannabis companies subject to unclear rules and risk of federal shutdowns. The Medical Marijuana Regulation and Safety Act (MMRSA) created these regulations, but ultimately left control in the hands of Until recently, the Wild West of U.S. cannabis lacked robust statewide regulations which left California cannabis companies subject to unclear rules and risk of federal shutdowns. The Medical Marijuana Regulation and Safety Act (MMRSA) created these regulations, but ultimately left control in the hands of local cities and counties.
At last count, California has 58 counties and 482 incorporated cities across the state, each with the option to create its own rules or ban marijuana altogether. In this California Cannabis Countdown series, we plan to cover who is banning, who is waiting, and who is embracing the change to legalize marijuana permits, regulations, taxes and all. For each city and county, well discuss its location, history with cannabis, current law, and proposed law to give you a clearer picture of where to locate your cannabis business, how to keep it legal, and what you will and wont be allowed to do. Our last California Cannabis Countdown post was on the City of Desert Hot Springs, and before that,Sonoma County, theCity of Sacramento, theCity of Berkeley,Calaveras County,Monterey Countyand theCity of Emeryville.
Welcome to the California Cannabis Countdown.
Los Angelesis one of the largest cities on any scale and remains one of the most popular locations eyed by prospective medicalmarijuana business owners in California even thoughno new cannabis businesses have been allowed within the city since 2007. In fact, the cityprohibits all marijuana activities within its boundaries but allows a small number of businesses to operate under a strict immunity system. For those who dare to open and operate an illegal medical marijuana business, the repercussions can be high and the City Attorney is not hesitating to take swift and serious action to shut them down.
Location.The City of Los Angeles is themost populous cityin California, the second-largestcity in theUnited States, and it has the third-largest gross metropolitan product (GMP) in the world. It is home to Hollywood, which makes the city a major center of the U.S.entertainment industry. Beyond its thriving local economy, the city is known for its mediterranean climate and ethnic diversity.
History with Cannabis. On August 1, 2007, Los Angeles passed Interim Control Ordinance 179027 (the ICO) to prohibit new medical marijuana dispensaries unless a hardship exemption was approved by the City Council. At the same time, the ICO exempted certain existing medical marijuana facilities that were operating prior to September 14, 2007, and timely registered with the City Clerk by November 13, 2007.
On June 24, 2009, the City passed Ordinance No. 180749 that, among other things, removed the ability for new businesses to request a hardship exemption.
On January 26, 2010, the City passed Ordinance No. 181069, the Medical Marijuana Ordinance (the MMO), which added Article 5.1 to Chapter IV of the Los Angeles Municipal Code in order to establish a regulatory framework for medical marijuana collectives. The code required collectives to meet preinspection requirements and register with the Department of Building and Safety. The MMO was later amended by the City on January 21, 2011, through Ordinance No. 181530, the Temporary Urgency Ordinance (the TUO), which requiredcollectives to notify the City of their intent to register by February 18, 2011.
On March 8, 2011, voters in the City approved Measure M, which imposed a tax of $50 for every $1,000 of revenues generated by medical marijuana collectives.
On May 21, 2013, voters in the City approved Proposition D, which repealed and replaced the regulatory system set in place under the MMO in order to further stem the proliferation of medical marijuana businesses occurring throughout Los Angeles.
Current Cannabis Laws. Article 5.1 of the current City Code states that
It is unlawful to own, establish, operate, use, or permit the establishment or operation of a medical marijuana business, or to participate as an employee, contractor, agent or volunteer, or in any other manner or capacity in any medical marijuana business.
This includes renting, leasing, or otherwise permitting a medical marijuana business to occupy or use a location, vehicle, or other mode of transportation.
A medical marijuana business includes any location where marijuana is cultivated, processed, distributed, delivered or given away to a qualified patient or caregiver, as well as any vehicle or other mode of transportation used to transport, distribute, deliver, or give away marijuana.
Limited immunity from prohibition is granted to medical marijuana businesses which can establish the following:
- Registration under the ICO through a business tax registration or tax exemption certificate issued prior to November 13, 2007;
- Notification of intent to register under the MMO, as amended by the TUO, by February 8, 2011;
- Registration for taxation under Measure M in 2011 or 2012; and
- Compliance with other applicable operating and location restrictions.
Current Cannabis Enforcement.In lieu of our usual discussion of Proposed Cannabis Laws (considering that there are currently no published proposed ordinances to speak of), we will instead review how Los Angeles is currently choosing to enforce its existing cannabis laws and policies. Only 135 medical marijuana businesses qualified for ...
