Los Angeles is known as the epicenter for many things, and now cannabis businesses are about to be added to the list. The marijuana market is booming in the city, and it is set to boom for the next few years.
There are approximately 4 million people residing in the city of Los Angeles while approximately 18 million residing in the metropolitan area of LA.
Compare this to Colorado with 5 million and Washington with 7 million and it is easy to see why Los Angeles is poised to be the cannabis capital of the country.
California also has one of the oldest medicinal marijuana markets to build on as a foundation for the cannabis culture and marijuana market. And this, in combination with the large population of LA, is giving rise to many cannabis businesses thriving on an already hungry market. Thousands of marijuana businesses have emerged, from cannabis deliveries to online cannabis dispensaries– and this is just in the first quarter of the new year with the legal recreational marijuana market. According to statistics, if only 50% of the medical marijuana businesses cross over to the new legal regulated market then the municipality of Los Angeles will already be home to the largest amount of legal marijuana businesses in the country. Los Angeles would even rise above long established cannabis communities such as Seattle and Denver.
However, that does depend on whether or not these existing businesses will abide and roll over into the new regulated market.
The Proposition M was a big stepping stone for Los Angeles. Voters approved this landmark proposition in March. The main objective of this proposition is to create a stable structure for the regulation of medical marijuana and recreational marijuana business. The details regarding this proposition and how the structure will be implemented is still being polished and the transition period could see many businesses in the existing market faltering but the transition period could also see many new entrepreneurs and individuals jumping into the market.
While the details around just exactly how Proposition M will regulate the market, the following is certain:
-Proposition M created a municipal Marijuana tax structure
-Established the dissolution of older city laws that stops an abundance of cannabis stores and businesses from opening shop
-Unlicensed marijuana businesses are subject to higher penalties now with the fines reaching up to $20 000 per day for a business that is selling cannabis with no city permit.
The city council still needs to decide how and what the zoning and licensing will look like with the new proposition. Even though this proposition brings forth new uncertainty and questions, residents and business owners are enthusiastic for the future of cannabis as they believe that the city is open-minded about the benefits that the cannabis market can bring.
One of the main reasons for the success of the cannabis industry in Los Angeles is that the relationship between the city council and the industry leaders is a positive one. Herb Weston, Council President, is standing for the regulation and the expansion of the cannabis market in Los Angeles. This is what makes all the difference for the success of the cannabis industry in LA. Weekly stakeholder meetings are also set to take place.
These meetings will take place every Monday and with several different associations being represented, it creates an open environment around the subject of cannabis business and marijuana market. This is the first time Los Angeles has embraced such an open viewpoint on the previously (and still, some) controversial subject.
The success of the cannabis business and marijuana market in Los Angeles is largely due to the city leaders realizing that brashly getting rid of cannabis businesses, whether medical dispensaries or recreational cannabis dispensaries, is unwise if they want to work towards a healthy and stable market. The change in approach has allowed the success of the cannabis stores in Los Angeles to flourish.