Los Angeles’s current medical marijuana dispensaries (“EMMDs”) underneath Measure M will quickly be precluded from relocating from their present operations until and till they obtain their native annual licenses from the Metropolis of Los Angeles. Motion post-initial utility to L.A. has been a typical apply for EMMDs for a while, and has apparently triggered a rift with different potential industrial hashish licensees who have been successfully “zoned out” primarily based on buffer necessities when an EMMD moved into their deliberate licensed territory (non-EMMD storefronts should be at least 700 ft from one another). The brand new requirement goes into impact quickly—however simply how quickly stays to be seen.
On October 19, 2018, the Los Angeles Guidelines, Elections, and Intergovernmental Relations Committee (the “Committee”) held a gathering which handled numerous cannabis-related issues. Shortly earlier than the October 19 assembly, the Los Angeles Division of Hashish Regulation (“DCR”) submitted a letter requesting amendments to the Metropolis’s hashish procedures, that are codified within the Los Angeles Municipal Code (“LAMC”). The letter requested that the Metropolis Council instruct the DCR to cease processing EMMD relocation requests or amend the LAMC accordingly. The DCR is worried with EMMD relocation requests as a result of:
In sure situations, an EMMD has re-located to a enterprise premises inside 700 ft of a location a Part three applicant has secured as a possible retail enterprise premises. As a result of the Metropolis doesn’t allow a Part three retailer to be inside 700 ft of one other retailer, in these situations, the Part three applicant should abandon the situation it has secured and discover an alternate location. As this re-location problem might affect the Tier 1 and Tier 2 Social Fairness Candidates making use of for retail licenses, DCR recommends that the Metropolis Council both instruct DCR to cease processing EMMD re-location requests or amend Sec. 22.214.171.124 of Article 5.1 of Chapter IV of the LAMC to ban EMMD re-locations as of January 1,2019.
In different phrases, EMMD relocations may create a block on actual property for potential different dispensary licensees, and primarily based on the social fairness program within the Metropolis (for extra on social fairness, see right here), the Metropolis needs to make it possible for part three social fairness retailers get a good shot at a extra static actual property state of affairs.
Additionally on October 19, the Committee issued a report that requests that the Metropolis Lawyer, working with the DCR, “put together and current an Ordinance to amend [the LAMC] to ban future Current Medical Marijuana Dispensaries re-locations previous to the issuance of an annual license, and instruct the DCR to stop accepting and approving new re-location requests whereas this ordinance is into consideration by the Metropolis Council.”
EMMDs whose native annual licenses are nonetheless underneath evaluate will thus not be capable to change areas (until and till they get that annual native approval)—however the huge query is when that may kick in. From the textual content of the report, the DCR will probably be instructed to stop accepting and approving new relocation requests whereas the to-be-drafted ordinance is into consideration. It doesn’t seem like the ordinance is but into consideration, so relocation requests should still be processed by the DCR in the event you get within the queue now.
One different necessary problem is whether or not relocation requests submitted earlier than the ordinance is handed can nonetheless be authorized after the ordinance is carried out–which means, is the ordinance going to be retroactive? The textual content of the report means that the DCR’s ban will probably be just for new relocation requests made after the ordinance is into consideration. That mentioned although, it actually depends upon what the ordinance in the end says in the long run and whether or not the Metropolis Lawyer and DCR resolve to ban any already-pending relocation requests.
For now, keep tuned. We’ll you should definitely present updates on the EMMD relocation prohibition because it evolves.