New disruption in San Diego’s local marijuana supply chain is going to shrink tax revenues and make it exponentially harder for dispensaries to meet their demands. Out of the 40 dispensaries in San Diego, not a single one was approved under the new city law preventing them from getting the necessary permits to open up shop.
At the same time, city officials are in the process of shutting down over 20 legal cannabis production companies that were supplying local dispensaries.
In October 2017, San Diego finalized the laws stating the production companies have two years to operate while they try to finalize business permits under the new laws. Only nine of the 33 have secured the permits necessary to become fully legal.
The city has stated that all other companies must stop all production by October 17. There are nearly 20 dispensaries in the city and most get their cannabis directly from the producers on the verge of being shut down.
As a result, these dispensaries will be choked out of business by intrusive regulations. To be blunt, the city’s regulations are hurting multiple private businesses and consumers who rely on them.
