At least 57 marijuana licensed companies in Los Angeles are set to be revoked by the city by the end of the year – but there is no obvious way to restore them.
The licensees in question – which appear to be a mixture of retailers, distributors and perhaps other business types – represent roughly 14% of the 418 marijuana business permits issued to date by the city, according to the L.A. Department of Cannabis Regulation (DCR).
Although the City Council has a motion pending to give the 57 companies a lifeline, the council is in recess until Jan. 8.So it’s unclear if the Council would be able to act in time to save the businesses. But even the Council motion itself warns that all of the companies might be forced “out of business” next month.
At issue is those companies’ annual license renewal applications and fees for 2021, which were due Nov. 2.
The vast majority of licensed marijuana companies in the city paid on time and received documents, but at least 57 companies did not.
Under current city law – which was put in place in July 2020 – there’s no way to grant the businesses extra time, a DCR spokesperson noted in an email to Marijuana Business Daily.
“(City code) does not permit DCR to waive late renewals or allow reinstatements,” the spokesperson wrote.
After Dec. 31, 2020, according to the DCR website, all 57 licensees “will be required to cease operations and will not be allowed to engage in commercial cannabis activity until a new application is submitted to DCR and a new temporary approval or license is issued.”
As a result, all 57 dispensaries seem to have to start all over again, applying for local and state licenses at the same time, a process that can take months, or even years, before they can reopen.
At the moment, there appears to be little that can be done to avert the closures.
“Late renewals and/or reinstatement would require the City Council to amend the Los Angeles Municipal Code,” the DCR spokesperson wrote.