Authorities shut down an unlicensed cannabis dispensary Wednesday in South Los Angeles, with city officials saying the crackdown is aimed at deterring other illegal operators.
Los Angeles police served a search warrant and closed the illegal dispensary positioned at 8931 S. Broadway. City Councilman Marqueece Harris-Dawson, who represents the region, stated his district has “far also several illegal dispensaries.”
“We have more than 70 illegal dispensaries in our district and dozens are nevertheless listed on platforms like Weedmaps,” Harris-Dawson stated. “Illegal dispensaries poison our neighborhoods and their personal shoppers by operating risky, unregulated companies. In addition, these illegal actors make it complicated for legal dispensaries to operate effectively, like Cannabis Social Equity System participants.”
Final week, Weedmaps announced that it would cease listing unlicensed cannabis companies on its platforms, but the Irvine-primarily based enterprise also stated the resolution to the difficulty is to give licenses to far more companies.
“Shutting down these persistent offenders will aid to generate far more possibilities for legal cannabis companies to contribute to their communities and the city although draining sources from the illegal market place,” stated Cat Packer, executive director of the Los Angeles Division of Cannabis Regulations.
Twenty months given that licensing and regulation started of newly-legalized sale of cannabis for recreational use in California, licensed shops account for only 20 % of sales, according to Ruben Honig, executive director of the United Cannabis Organization Association. Its members are committed to increasing a viable regulated business. But in the present scenario, Honig fears some licensed shops may well fail in the face of competitors from unlicensed sellers with a decrease expense of undertaking business enterprise, in portion for the reason that they steer clear of paying taxes that quantity to 34.five % of sales.
Published: August 29, 2019