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The Deathblow to LA Dispensaries??


It is official, the city of Los Angeles has passed an ordinance that would reduce the number of dispensaries from over 1,000 down to 70 (see attached article). In addition to a 1,000ft buffer zone, other restrictions include; ‘forbidden from operating for profit, requires them to pay employees “reasonable wages and benefits” and rules out bonuses. It requires them to maintain extensive records and to submit an annual accountant-verified audit. It prohibits operators from running more than one dispensary. And it allows people buying marijuana to join only one collective.’ This is quite a change from the free for all that has been ensuing for the past 5 or 6 years. The question I have is ‘Will this be a new trend in America?’ The only other area that has as many dispensaries as LA is Denver, and there are no proposed ordinances there that I can see. However, Evans, CO enacted an outright ban on dispensaries today, could Denver be next? I predict that once people see the lingering effects of the LA ordinance, they will demand it in their area too.

Should dispensaries be able to operate unimpeded? Are the current rules in LA the ‘best option?’ From what I can tell, there is still a loophole for people to take advantage of. The dispensaries are not allowed to push a profit, but the people growing the marijuana and taking it to the dispensaries are still going to get paid. Considering the growers and dispensary owners are closely tied, if not the same person, it will be difficult to regulate. An interesting statistic put forth by the LA PD is that to monitor 70 dispensaries it would take $1.3 million, a lieutenant, 11 detectives, an auditor, and a clerk to do the job. I don’t have a law enforcement background, but it seems to me that the easiest way to regulate and monitor these facilities is looking at the books. Is 1 auditor enough? Is 11 detectives too much? And for that matter, how does it cost $1.3 million to pay 14 people!



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Johnny Green


  1. Cannabis College on

    Yeah this stuff has been going back and forth for a while and will continue to. That’s the thing, with the laws constantly being fought over and contested, it’s hard to stay on top of things and actually maintain a legal operation. This cannabis college is a great resource for that, actually does video interviews with lawyers regularly and keeps things up to date. Check it out if you’re interested in starting something up.

    Cannabis College

  2. If anyone remembers back a few months ago the statement ” no dispensary’s are operating legally , and the cc opinion is so irrelevant ”
    blah , blah
    If you read the latest proposal there are so many things in this ordinance
    that go against prop 215 ,
    1 for instance “test all med[s grown on site” just curious how much these machines would cost?
    What about the hundreds of jobs taken away , how bout those empty storefronts , i smell a class action lawsuit
    from what i have read , Colorodo went through the same thing and prevailed.
    I cant see 8oo stores just walking away , so this should be interesting to see how this plays out

  3. Name one aspect of medical marijuana regulation that HASN’T gone to litigation? The City Council ignored the advice of its own attorney, who has joined the county DA in opining that any type of cash transaction at dispensaries puts them in violation of state law. Add that to the issue of whether a dispensary now complies with the new city ordinance, and you’ve got a full-employment act for attorneys.

  4. They will try to shut down the shops but I foresee a really good team of lawyers gettin an injuction filed. Oh and count on it to be in litigation for a while.

  5. How long does it take for the rules to be set in place? Will it really turn out this way or will it be a parade of appeals? There are way too many shops open and too many supporters for them to shut down this way.

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