November 14, 2022

Los Angeles County’s Cannabis Businesses

At Manzuri Law, our California cannabis attorneys are monitoring Los Angeles County’s implementation of cannabis business licenses in unincorporated areas.

On November 8, 2022, Los Angeles voters  approved Measure C, the cannabis business tax measure, allowing the County to tax upcoming cannabis businesses at the following rates commencing  July 2023:

  • Retail: 4% of gross receipts.
  • Manufacturing: 3% of gross receipts.
  • Distribution: 3% of gross receipts.
  • Testing: 1% of gross receipts.
  • Cultivation: $7/sf of canopy (indoor artificial light).
  • $4/sf of canopy (mixed light).
  • $4/sf of canopy (outdoor).
  • $2/sf of canopy space (nursery).
  • Any other type of Cannabis Business:  4% of gross receipts.

Revenues produced by this general tax would be directed to the County’s General Fund and may be utilized for a broad array of programs and initiatives to further support economic and workforce development within the County.

Developing and Implementing an Equitable Commercial Cannabis Licensing Program in the Unincorporated Areas Of Los Angeles County

Earlier this year, the Board of Supervisors directed the Office of Cannabis Management (OCM), within the Department of Consumer and Business Affairs, to develop and implement an equitable commercial cannabis licensing program in the unincorporated areas of Los Angeles County. OCM’s recommended regulatory framework includes building a robust cannabis Equity Program.

The program will provide access to resources like initial priority licensing, business development and technical assistance, pro bono legal assistance, access to capital, and potential pathways to jobs, entrepreneurship, and ancillary economic opportunities within and outside of the cannabis industry.

This program will also assist in  addressing the administrative barriers that create inequitable outcomes and calls for investments to bridge the gaps in educational, technical, and financial resources caused by systemic racism and exacerbated by the War on Drugs.

The County will initially issue 25 retail, 25 delivery, 10 cultivation, 10 manufacturing, 10 distribution, and 10 testing licenses. This will  allow the County to lead the program with equity, monitor and assess community impacts and efficacy of regulations, and build appropriate infrastructure to support expansion in the coming  years.

However, cannabis businesses remain prohibited in unincorporated LA County until the permitting program is launched. Once the permitting program is instituted  all cannabis businesses will be required to obtain all appropriate state and local authorization to operate.

Questions About LA County’s Upcoming Cannabis Program?

Contact one of our California cannabis law firm specialists today by phone at (310) 912-2960 or online to discuss your business goals, so we can help you understand the newly implemented program, and your eligibility to join the movement.