In Los Angeles, the medical marijuana fight is still blazing. Last Spring, LA passed a measure to regulate the pot shops that had been popping up across the county. The intent of proposition D was to regulate and tax medical marijuana businesses.
This limited the number of dispensaries allowed in Los Angeles to 135. This allowed all dispensaries that had operated since September 2007 and had previously registered with the City. This also increased the city tax on mmj businesses from $50.00 to $60.00 per $1,000 of gross receipts.
Proposition D's Impact
So far, only about 70 dispensaries have been closed from the approximately 700 that were opened prior to prop D passing.
This has become a problem for legal dispensary owners. Location regulations, outlined in prop D have required legal pot shops to either relocate or renovate, disrupting business and costing tens of thousands of dollars.
Another threat to legal pot shops in LA is that illegal pot shops haven't closed down as expected, and legally compliant spaces are scarce. Because some illegal pot shops have taken up some of the only available spaces allowed to medical marijuana shops illegal shop owners have offered to transfer their lease for as much as $150,000.
The transfer of said legal licenses is also largely unregulated which has opened up some dispensaries to transferring their legal license to illegal centers or taking on less than ideal business partners.
The Future of Medical Marijuana Dispensaries in Los Angeles
LA doesn't show any signs of an upcoming ban on dispensaries since the one they rescinded in 2007. And with California seeming to be on the cusp of recreational cannabis legalization, Los Angeles dispensaries are independently gearing up to stay in business for the long haul. Many
see the benefits of complying with legislation, now and maintaining a good track record while they wait for new framework regulated by the state.
Make Sure Your Dispensary is in Compliance with RegulationsOne of the most important things about running a dispensary is staying within local government's compliance. Make sure that your dispensary's equipment is in compliance with federal regulation to minimize your risk.
Cafe Cartel's Dispensary Point of Sale Solutions
- Legal for trade approved gram scales for dispensaries
- POS Credit Card Processing Solutions
- Advanced reporting features- not cloud based- allows you to be in control of where your data and dispensary information goes.
- Discreet Patient Check-in and privacy options
- Security and Surveillance solutions that meet local compliance ordinances and safeguard against theft and fraud.