Cannabis delivery operator, trade groups sue L.A. over social equity rules

A marijuana businessman and two trade associations filed suit against Los Angeles, asking a judge to throw out a new city ordinance that devotes all MJ delivery business permits to social equity applicants until 2025.

At issue are 20 delivery licenses that the city authorized in 2017 for non-social equity entrepreneurs that were supposed to be awarded under a delivery pilot program – in addition to 40 delivery permits for social equity applicants.

The delivery pilot plan, however, was scrapped in July when the L.A. City Council overhauled its marijuana business ordinance. At that point, the municipal law was changed, and all delivery permits were reserved for social equity applicants for the next five years.

The lawsuit – filed by Ganja Goddess co-founder Zach Pitts, the Southern California Coalition and the California Cannabis Couriers Association – claims the Council’s overhaul disenfranchised legacy operators who had been waiting patiently for their turn to apply for business permits.

Pitts told Marijuana Business Daily on Monday afternoon that his goal is to get L.A. officials to return to the City Council’s original plan, which set no limit on delivery licenses but did specify a 2-to-1 ratio of social equity entrepreneurs to other qualified businesspeople.

Los Angeles’ Department of Cannabis Regulation and the city attorney’s office declined to comment to MJBizDaily. Spokespeople for the City Council did not immediately respond to requests for comment.