Under California law commercial cannabis delivery services may deliver [cannabis] to any jurisdiction within the state, provided the business is in compliance with all regulatory requirements. Consumers can enjoy the freedom and convenience of at home cannabis delivery even in areas that have prohibited cannabis sales in its jurisdiction. It is a major breakthrough, particularly for those who are limited by distance, illness, or some other immobility to the nearest legal dispensary. For many who rely on delivery services for medicinal needs, the law enables patients access to safe and tested cannabis product.
The law has also stirred up controversy among cities and counties that have prohibited commercial cannabis sales within its jurisdiction. Back in April, 25 cities filed a lawsuit against the state arguing the Bureau of Cannabis Control (BCC) is in violation of Prop. 64, allowing local jurisdictions to regulate or prohibit commercial cannabis sales under its own authority. Weedmaps, a prominent online cannabis directory, has come across legal trouble of its own due to the law. An online database of dispensaries and delivery services in California, Weedmaps is a popular cannabis search tool for consumers. In light of backlash from legal businesses threatening a class action lawsuit for violating California’s Unfair Competition Law, prohibiting false advertising and illegal business practices, Weedmaps CEO announced last month it will remove all non-licensed retailers and delivery services from its database.
Expected to be complete by the end of the year, the move marks a pivotal change in the industry to combat the black market. Weedmaps announced it will work with regulating agencies in the state to encourage consumers to procure cannabis from legal businesses. Company policy now mandates its users provide a valid state issued license number in order to advertise on the site. The illicit market will inevitably suffer from competition with legal businesses having to rely on word-of-mouth and passersby, substantially reducing foot traffic and sales revenue.
Contributing to legal cannabis not only supports the regulated market but its surrounding community. The cannabis industry provides stable, equitable career opportunities not to mention the economic benefits generated from taxes on cannabis sales. The recent ‘vaping crisis’ brings into question potential, harmful side effects from untested, unregulated cannabis product putting consumers’ health at risk. As the market becomes more saturated with legal businesses, not only promotes fair competition in commerce but influences the consumer conscience toward ethical spending allowing the regulated industry to flourish.
So, where can you start your cannabis delivery service?
The first round of retail licensing for the City of Los Angeles closed on September 17th, and will reopen again for Round 2, currently anticipated for early 2020. The Department of Cannabis Regulation (DCR) will start accepting applications under the Delivery Pilot Program during Round 2 of Phase 3. The DCR also suggests applicants whose business is located in an area of undue concentration will be able to apply for a delivery license during this next round of licensing.
Below is a comprehensive list of cities and counties outside of Los Angeles across the state currently open for licensing applications to begin your cannabis delivery business. Every city and county has different application and regulatory requirements, so consult with an attorney for how to obtain a license in your jurisdiction.
- Goleta City
- Lompoc City
- Port Hueneme City
San Bernardino County:
- Hesperia - Medical only
- Cathedral City - Zoning is only open north of Interstate 10
- Jurupa Valley City - Accepting only non-priority applications
- Rancho Mirage City - No cap for delivery
Contra Costa County:
- Antioch City
- Lakeport City
- Belvedere City
- Point Arena City
- Ukiah City
- Willits City
- Truckee City
- Isleton City
- Sacramento City - Cannabis delivery may be approved on a case-by-case basis for permitted (existing) dispensaries or by new non-storefront, delivery-only dispensaries in the following zones: General Commercial (C2), Heavy Commercial (C4), Light Industrial (M1 and M1S), Heavy Commercial (M2 and M2S)
- Redding City
- Cloverdale City
- Cotati City
- Santa Rosa City
In an ever changing, heavily regulated market, it is crucial to have an attorney with an expert knowledge of the laws surrounding cannabis. Contact Margolin & Lawrence today and inquire how we can secure your business’ future.