A nighttime time lapse of Highway 110 in downtown Los Angeles, California.

Giuseppe Milo

Los Angeles Releases Rec. Industry Draft Rules

The city of Los Angeles, California has released the draft rules to regulate the forthcoming recreational cannabis industry, imposing restrictions on where cannabis businesses can operate, outlining application requirements, and prohibiting cannabis from being consumed on site, according to a Los Angeles Times analysis of the proposal.

The draft rules limit cannabis companies to operating in most commercial and industrial zones, and bars them from operating within 800 feet of one another. Dispensaries would be banned from operating within 800 feet from parks, schools, public libraries, and drug and alcohol treatment facilities. All businesses would be required to have security and video surveillance, and undergo audits and inspections.

The rules stipulate that businesses must have a plan for hiring local residents and if they have at least 10 employees they must employ a “labor peace agreements” which prohibits employers from interfering with labor organizing by employees.

According to a Canna Law Blog analysis, existing dispensaries that are compliant under the current medical cannabis regime would be the only permitted retail outlets until the general application process opens in Phase 3 – after non-retail and social equity program applicants are approved. Social equity programs are aimed at providing members of communities disproportionately policed for cannabis crimes preferential licensing under legal cannabis regimes.

Rubin Honig, executive director of the Los Angeles Cannabis Task Force, called the draft regulations “a good step forward” but warned that “many existing and new businesses in L.A. will face long delays before they can apply for a city permit and legally operate.”

City Comptroller Ron Galperin estimates that the city could collect at least $50 million in cannabis tax revenues next year and citywide sales could approach $700 million. The draft rules will be available for public review and comment for 60 days before officials take any action.

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