Los Angeles May Limit Who Can Challenge Cannabis Businesses

The competitive nature of the cannabis industry is especially evident in Los Angeles. Los Angeles’ proposed draft rules include a new stipulation that restricts who can file appeals when cannabis businesses get approval for city licenses. Those who do not live, work or own property in the vicinity would be blocked from challenging potential cannabis businesses.

Under the proposed changes, the city of Los Angeles would only accept appeals from business applicants or occupants, stakeholders or property owners with property less than 500 feet away from the businesses they appeal. Appellants have 15 days after the city’s decision to appeal. Once an appeal is filed, it must be heard within 15 or 60 days, according to the type of business involved.

The proposed draft rule changes were led by Los Angeles City Council President Herb Wesson. “It just didn’t make sense to me that somebody in San Pedro would appeal something on Crenshaw Boulevard in my district,” Wesson told the Los Angeles Times. Wesson’s district consists of areas that include Koreatown and South Los Angeles.

Some Los Angeles residents criticized the proposed rule, calling it unfair and without justification. Five hundred feet—some critics argued—is roughly less distance than a city block and rules out nearly anyone from filing appeals. The opening of other special types of businesses, such as bars, can be challenged by almost any resident.

Restricting who can appeal the opening of cannabis businesses may be a good idea. Cannabis businesses in San Diego, for instance, have filed appeals against each other. “We saw a very cutthroat mentality of applicants appealing one another,” said attorney Kimberly Simms. The proposed rules could also block prohibitionists from appealing every new cannabis business.

The details in the fine print have both encouraged and alarmed potential cannabis business owners. Either way, business applicants face a fiercely competitive landscape in Los Angeles.