More than 2K new cannabis shops could bloom statewide under proposed bill

While cities like LA struggle to contain illegal pot retailers, other municipalities have banned the retailers

May.May 13, 2019 09:00 AM
Assemblymember Phil Ting
Assemblymember Phil Ting

Los Angeles, like other cities in California, are struggling to contain unlicensed cannabis shops that have been blooming. While L.A. officials are cracking down, they face a daunting task.

But only a third of the state’s 540 municipalities allow cannabis shops. Now, state lawmakers want to change that, according to the Los Angeles Times.

A bill from Assemblyman Phil Ting would require all cities to permit at least one shop for every four liquor stores, or every 10,000 residents. If passed, AB 1356 could allow for the opening of 2,200 new retail cannabis shops statewide.

The ban on pot shops have cut down on expected tax revenue the state takes in, according to the Times. Gov. Gavin Newsom lowered estimated state tax revenue for this year by $156 million to a total expected revenue of $359 million.

Legalized recreational cannabis has created a real estate rush for investors and developers catering to retail, grow operations, and product manufacturing. There are 631 shops statewide and many of them are concentrated in coastal cities . L.A. leads the pack with 84, followed by San Francisco’s 32 and Santa Ana’s 29.

Many in rural parts of the state have no access to legal cannabis. There are concerns in some cities over pot’s legal status at the federal level. For now, cannabis is an all-cash business. Some local leaders in cities that could be subject to the requirement call it government overreach.

“This bill is an example of Sacramento deciding what should happen at the local level, and it’s just wrong,” said Burbank Mayor Emily Gabel-Luddy. [LAT]Dennis Lynch 

Related Articles

Rick Caruso (Credit: Tiffany Rose/Getty Images for Caruso Affiliated)

Some retailers and malls won’t survive the coronavirus shutdown

Mitchell Englander in front of L.A. City Hall (Credit: Lilly Lawrence/Getty Images, and iStock)

Ex-LA council member surrenders to FBI in real estate probe

From left: Michael Shabani, James Randall, and 8840 Beverly Boulevard (Credit: Getty Images)

Investor James Randall pays $36M for WeHo furniture showroom

David Ryu (Credit: Getty Images)

LA becomes 1st city to enact ban on developer money

Adam Bierman

Struggling cannabis retailer MedMen dumps REIT stake

Ramtin Ray Nosrati and a rendering of a cannabis lounge at one of his properties (credit: Huntington Estate Properties)

Agents and developers embrace high society cannabis culture

Hudson Pacific Properties CEO Victor Coleman and the Westside Pavilion (Credit: Google Maps)

Hudson Pacific wants full control of Google-leased One Westside; not sweating WeWork

Council President Herb Wesson

High-ly suspect: LA Council president wants to halt pot shop licensing; calls process “unfair”