The Time Has Come

A uniform and comprehensive regulatory scheme for cannabis dispensaries in Los Angeles is long overdue. Medical cannabis dispensaries in Los Angeles have swelled in numbers and have diminished just as quickly, but have never enjoyed the benefits of complete licensing. On March 7, Los Angeles voters will decide on Proposition M, which would give the city council authority to oversee the recreational and medical cannabis industry. Herb Wesson and the city council drafted the bill in hopes of finally securing the “Wild West” era of cannabis dispensaries in the “City of Angels.”

Proposition M would give city council authority to regulate, tax and enforce both recreational and medical cannabis. It would replace Los Angeles’ Proposition D, which limited the number of shops to 135. The city council would have power over how many dispensaries can open. It would also prioritize the 135 original compliant shops to receive licenses first. The best part about Measure M is that the proposition is flexible for future changes, which will inevitably happen. Measure M also gained the official endorsement from the Los Angeles Times.

“Current legislation is impeding patients’ access to their medicine, and with improved regulation, their access will be enhanced—which at the end of the day is our main goal for operating within this industry.”

David Barakett is Chief Executive Officer of ShowGrow, an established cannabis dispensary chain with three locations in Southern California including one in downtown Los Angeles. ShowGrow is licensed by both state and local regulations, and it veers toward the sophisticated side of the medical cannabis industry. “Right now, the current regulatory reality under Proposition D needs to change to normalize the business of medical marijuana and provide a stable business environment,” Barakett told CULTURE. “We at ShowGrow welcome the opportunity for change and are optimistic that the city council will take into account the constituent majority and implement fair regulations. Current legislation is impeding patients’ access to their medicine, and with improved regulation, their access will be enhanced—which at the end of the day is our main goal for operating within this industry.”

Proposition M would impose a five percent tax on local gross receipts for medical cannabis sales and a 10 percent tax on recreational cannabis sales. It would also impose a one to two percent tax for transportation, research and cultivation companies. If companies violate the terms, penalties would incur such as having the Department of Water and Power shut off utilities. If the measure is approved, it could set a standard for other cities that have cold feet about regulating cannabis dispensaries. The proposal is supported by Los Angeles Cannabis Task Force, the UCBA Trade Association, the Southern California Coalition, other neighborhood councils and Weedmaps.

A competing bill, Proposition N, was of course filed, and will also be on the March ballot. Proposition N was fueled as a citizen-sponsored measure. The measure, in contrast to Proposition M, would monopolize the local cannabis trade by giving power to the original 135 Proposition D dispensaries. Proposition N was originally backed by a number of local trade groups, such as the UCBA Trade Association, but has since lost steam. Proposition N isn’t expected to pass, but it was too late to pull it off the ballot. In the event that both propositions receive a majority approval, the bill with the most “yes” votes supersedes the other.

One of the goals behind the Southern California Coalition was to ensure that minorities had equal opportunities within the cannabis sector. The coalition was designed to represent all facets of the cannabis industry. Many men and women with good intentions in the industry have been denied licenses because they are haunted by past convictions. Proposition M would ensure that minorities have a fair shot at getting started in the cannabis industry, despite past convictions. The bill would give Los Angeles residents a voice and have a say in the amendments to the bill. The bill is endorsed by Charlie Beck, Los Angeles Chief of Police, and Minnie Hadley-Hempstead, the President of NAACP’s chapter in Los Angeles. The police support the bill, because they’d rather spend time on real crimes instead of hounding confused business owners for the proper paperwork.