California’s 5 Worst Cities and Counties for Commercial Cannabis

California’s 5 Worst Cities and Counties for Commercial Cannabis

There have been countlessreports of how Californias medical and adult use cannabis markets under the Medical Cannabis Regulation and Safety Act and the Adult Use of Marijuana Act (now, combined under the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA)) will generate billions of dollars in revenue. Unless moreCalifornia cities and counties allow commercial cannabis activity within their borders, these numbers will prove far too high.

Our California cannabis clients are constantly asking us questions like, where in California should I set up my cannabis business? Which California cities and counties are the friendliest towards cannabis? Who is regulating now for what I want to do? And thoughthe list of welcoming cities and counties continues to change, it seems the worst cities and counties for cannabis continue to remain the same, despite the will of the voters and the actions of the California legislature.

When it comes to cannabis the below is my list of the five worst California cities and counties forcommercial cannabis activity not shockingly, most on this list are in Southern California:

  1. Los Angeles County.The most populous county in the United States has for a long time had a complicated relationship with cannabis. Though at one point Los Angeles County passed comprehensive regulations for medical marijuana dispensaries, (which remain in the County Code to this day) it has since instituted a ban on dispensaries and, as of 2016, it has also banned all commercial marijuana activities within unincorporated areas of the County. In March of last year, the County voted to shut down all illegal dispensaries and it hasvigorously pursuedthose shutdowns.It also adopted an ordinance that makes it explicitly illegal for landlords to rent to any marijuana operators. And just this month, the County again voted to extend the ban for an entire year on all marijuana-related business activity, though with this vote the County for the first time also outlined reasonable regulations for personal use of marijuana for medical purposes by individual patients. There is though some light at the end of the tunnel since the County expects eventually to pass comprehensive regulation for marijuana businesses. Though the MAUCRSA does not require local government approval of your cannabis business before you receive a California state license, eventual compliance with local laws is still required in the state licensing process. What this means is that unless and until L.A. County sets up its regulatory scheme, we shouldnt expect a lot (or any) state-licensed or locally permitted commercial marijuana activity in the County.
  2. City of Riverside.In 2013, the City of Riversidewona landmark case beforethe California Supreme Court upholdingits right to ban medical marijuana collectives within its borders under Proposition 215. And since the MAUCRSA does not prohibit cities andcountiesfrom banning marijuana businesses, Riverside is keeping with its prohibitions against cannabis businesses within city limits. City of Riverside voters rejected a 2015 ballot measure that would have allowed and regulated a small number of dispensaries in the City and since 2007, Riverside has shuttered 118 dispensaries giving it the supposed distinction of being the onlyCalifornia city witha 100% closure rate. Riverside is keeping its ban on medical marijuana businesses in place for now, and though it has yet to make a decision about adult-use marijuana businesses, we can fairly safely predict thattoo will be a no-go.
  3. Orange County (and most of its cities). Though beloved cannabis reformer (and author of the Rohrabacher-Farr Amendment) CongressmanDana Rohrabacher hails from the OC, his homecounty and most of its cities are pretty bad when it comes to allowing for/regulating commercial cannabis activity. Orange County banned dispensaries (and all other medical marijuana activity) in 2010 afterthe Sheriffs Department submitted a report to County supervisors statingthat dispensaries [were] responsible for an uptick in robberies, burglaries, weapons violations and money laundering. Though some OC cities allow for small home grows for qualified patients and their primary caregivers, most OC cities (including its largest city, Anaheim)do notallow any commercial cannabis activity or they charge an arm and a leg for it (see Costa Mesas approximately $94,000.00 price tag for cannabis permitting). And lets not forget thatbotched dispensary raid in Santa Ana in 2015. Back in January of this year, the County did begin talking about regulation of marijuana businesses afterpassage of Proposition 64 but so far nothing has come of that discussion and OC cities mostly continue to opt for prohibition.
  4. Marin County. When it comes to cannabis business regulation and Marin County, two words come to mind: drama and disappointment.In December 2015, Marin County passed an ordinance ...
Read More