Under the Los Angeles, California City Council adult-use cannabis industry rules proposal all currently operating dispensaries would be shut down while they await new licenses; however, City Council President Herb Wesson has indicated he would consider a provisional licensing system to avoid a total industry shutdown, according to a Newsweek report.
The rules would, however, see the Los Angeles adult-use market come online before the Jan. 1, 2018 start date provided by the voter-approved adult-use legislation.
Last year the city began taxing medical cannabis sales, leading to $21 million in revenues and officials expect that figure to jump to $50 million during the first year of recreational sales. The state’s nascent industry will not be without its issues as prices will likely be higher than other markets – including the illicit market – because of the high taxes approved on cannabis sales in the state.
Moreover, tourists will not have a place to consume cannabis as social-use provisions are not included in the state’s legislation, and smoking is banned at hotels, including balconies, beaches, bars, and parks.
The Los Angeles proposals cover taxes and details such as regulating hours of operation. They have been approved by a City Council commission but still need final approval from the full council.
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