Los Angeles releases draft regulations for marijuana industry

Just Released! Get realistic market forecasts, state-by-state insights and benchmarks with the new 2024 MJBiz Factbook member program, now with quarterly updates. Make informed decisions.

The city of Los Angeles released a much-anticipated draft of recreational and medical marijuana business regulations, though much of the rulemaking must still be completed in coming months.

“The release of this draft ordinance is a crucial step in the city’s effort to prepare for the Jan. 1 statewide legalization of cannabis and, more specifically, to help us create a clear and enforceable set of regulations here in L.A.,” City Councilman Paul Koretz said in a news release.

Meanwhile, the L.A. Department of City Planning released a draft of a new land-use ordinance for marijuana businesses.

Cannabis industry attorney Hilary Bricken’s blog highlighted some of the draft regulations, which span more than 50 pages and are more complicated than some state regulatory systems. A sampling:

  • Edibles firms can’t produce individual servings with more than 10 milligrams of THC, and a packaged edible product can’t contain more than 100 milligrams of THC.
  • Concentrate manufacturers can’t use metals or butane, propane or other flammable materials for cannabis extraction.
  • Retailers may offer delivery services, but a delivery vehicle can’t contain more than $3,000 worth of product at any one time.
  • Growers may hold multiple licenses if total canopy space does not exceed 1.5 acres.

There will be a 60-day comment period on each draft before either the L.A. City Council or the City Planning Commission takes further action.

L.A. cannabis trade associations were quick to praise the city council for working with industry leaders on crafting the rules.

Virgil Grant, president of the Southern California Coalition, and Ariel Clark, chair of the L.A. Cannabis Task Force, called the draft rules “a positive step forward” and “a great step forward,” respectively.

They also hedged a bit, indicating there is still much to be done to fine-tune the regulations.

Clark said in a statement that the draft contains “requirements that will disadvantage key businesses,” and Grant asserted in a news release that “the city needs to start … separating the good actors from the bad ones.”