Many LA Dispensaries Get Placed on Chopping Block

As result of a new ordinance in Los Angeles, 75% of the current 169 registered dispensaries may be forced to close their doors.

The affected dispensaries recently received a letter from the city clerk stating that they were considered in violation of the new ordinance, and must shut down. In response, many of these dispensaries sued the city--which prompted the city to issue counter suits. While the city states they will not enforce the required closures until a judge has ruled, they are committed to their assessment and ruling of the violating dispensaries.

The main cause of the alleged violations--management changes. In a previous ordinance, any dispensary opened after November of 2007 was required to close. The most recent ordinance states that of the remaining dispensaries opened before 2007, any changes in management would result in a violation and must close their doors. 58 dispensaries were in violation solely based on management changes, with the remaining 70 having management changes and other issues as well.

To say the least, the owners of affected dispensaries are shocked and upset about the events. These individuals--many of them activists and well known supporters of the Los Angeles Medical Marijuana movement--had thought they were in complete compliance, and are suspicious of a legal technicality in the law.

Los Angeles officials are stating they will stick exactly to the letter of the law, and any dispensaries that failed to comply must shut down. The suspicious technicality is Los Angeles required any dispensaries that were opened prior to 2007 that were not already not-for-profit entities become one. The change from a for-profit to not-for-profit replaces the owner(s) with a board of directors--essentially a change in management. When the city recently requested updated information on the management of the dispensaries, any that did not have the exact names as they did in 2007 were in violation.

A judge will review the lawsuits in one sitting as a collective of affected dispensaries, and the ruling will either be a vindication or death sentence for some of the original trail blazers in Los Angeles' Medical Marijuana community.