Cannabis retail is regulated by the LA Dept of Cannabis Regulation under LAMC Articles 4 and 5. Storefronts must be in C1-C5, CM, or M1-M3 zones and 700+ feet from schools, parks, libraries, daycares, and other dispensaries. Both city (DCR) and state licenses are required. Social equity applicants receive priority in license lotteries. Proposition M priority EMMDs are exempt from new distance requirements.
Los Angeles has one of the largest legal cannabis markets in the world, regulated by the Department of Cannabis Regulation (DCR). The city issues licenses for retail, delivery, distribution, manufacturing, cultivation, and testing. A Social Equity Program prioritizes applicants from communities disproportionately affected by cannabis prohibition. Dispensaries must maintain 700-foot buffers from schools and 600-foot buffers from other dispensaries. Despite extensive licensing, unlicensed operations remain a significant enforcement challenge. The city cannabis tax rate is 10% on gross retail receipts.
Unlicensed operation: closure, criminal prosecution, and up to $20,000 per day fines. Zoning violations: permit revocation. Tax evasion: back taxes plus penalties.
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