The History of Prop D

Proposition D (Prop D) was an initiative proposed by the Los Angeles City Council to limit the number of medical cannabis dispensaries in the city. The ordinance was passed by overwhelming majority by the voters of Los Angeles in May 2013. Put simply, Prop D prohibits new medical cannabis businesses in the city of Los Angeles, and grants a limited immunity to cannabis businesses that adhere to certain specific restrictions. It also increased the existing tax applicable to the industry from $50 to $60 per $1,000 of gross receipts.

Starting in 2007, more than 850 medical cannabis businesses opened, closed and reopened storefronts and commercial growing operations across Los Angeles, all without any land use approval under the Los Angeles municipal code. In addition to this unchecked proliferation, the Los Angeles Police Department (LAPD) reported that as stores and growing operations continued to appear and establish themselves without sufficient oversight, there was a corresponding increase in crime in the neighborhoods around these locations. In order to bring some measure of order to the medical cannabis industry in Los Angeles, Prop D was proposed. At the time of the ordinance’s passing, there were approximately 500 dispensaries active in Los Angeles.

In order to be protected under Prop D, medical cannabis businesses in Los Angeles must meet a variety of specific requirements. First and foremost, Prop D holds dispensary locations in Los Angeles to the number open before 2007, 135. Institutions opened prior to 2007 and registered under the city’s 2007 Interim Control Ordinance (ICO) 179027 were granted immunity, providing they had previously registered with the City Clerk, and continued to meet the other requirements and operational standards set out by Prop D. Businesses opened after 2007 were also granted exemption from the prohibition, providing that they registered with the City Clerk by October 31st, 2013, and adhered to the standards set out in Prop D.

In order to be protected under Proposition D, cannabis businesses in the City of Los Angeles must adhere to the following requirements:

*Must open or operate between the hours of 10:00AM-8:00PM
*Must prohibit the consumption of alcohol and/or cannabis on the premises or in the parking area
*Must forbid minors unaccompanied by a parent or legal guardian from entering the premises
*Must have no cannabis visible from the exterior of the premises
*Must not be located within a 1,000-foot radius of a school, or within a 600-foot radius of a public park, public library, religious institution, child care facility, youth center, alcoholism/drug abuse recovery or treatment facility or other medical cannabis business
*Must not illuminate the premises by any lighting visible from the exterior of the premises during closure hours, except reasonable security lighting
*Must not locate any access (other than an emergency exit) on any side of the location that abuts, is across the street (unless 80 feet wide), alley or walk from the location, or has a common corner with residentially zoned land
*Must identify the name and residence address of each of its managers to the City Clerk, and have them take and pass a Livescan security check by January 31st of each year
*Must register under the City’s 2007 Interim Control Ordinance 179027
*Must register under the City’s 2010 Medical Marijuana Ordinance 181069, as amended by 2011 Temporary Urgency Ordinance 181530
*Must register under Measure M regarding the taxation of medical cannabis in 2011 or 2012
*Must not have any unpaid tax obligations to the city, including any assessed penalties, fines, interest or other costs, that are not paid in full prior to the commencement of the following tax year
*Must comply with all other operating and local restrictions

SOURCES
Office of LA City Attorney-Medical Marijuana
Prop D Wins, LA Medical Marijuana Dispensaries To Return To 2007 Number Of Locations
Medical Marijuana Dispensaries in Los Angeles: Here’s What Proposition D Means To You

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