San Diego is once again leading the way in progressive cannabis policy, with city officials now considering proposals to extend the operating hours of legal cannabis dispensaries. The current hours, 7 a.m. to 9 p.m., could soon expand to 6 a.m. to 10 p.m., the maximum operating hours allowed under California state law. This move is part of a broader effort to boost city revenues and support local businesses, especially as San Diego faces a significant budget deficit.
A Lesson for Los Angeles
Los Angeles, California’s largest city and a major cannabis market, should take note. Like San Diego, Los Angeles faces challenges from the unlicensed market and neighboring jurisdictions with friendlier regulations. Currently, Los Angeles’s cannabis business tax sits at 10% for adult-use sales, mirroring San Diego’s recent increase. However, Los Angeles’s dispensary hours remain restrictive compared to what could be possible under state law.
By adopting similar reforms — such as extending dispensary hours and exploring on-site consumption — Los Angeles could provide new revenue streams and further legitimize its legal cannabis market. These changes would not only benefit local businesses but also provide the city with much-needed tax dollars to fund essential services and community programs.
Why Expanding Hours Matters
Longer hours mean more opportunities for customers to make purchases, which translates directly to higher sales and, consequently, increased tax revenue for the city. San Diego’s cannabis industry has consistently advocated for these changes, arguing that they will help legal dispensaries compete more effectively with unlicensed operators and neighboring cities with lower tax rates. The industry also hopes that expanded hours will be paired with other reforms, such as allowing on-site consumption lounges and stricter enforcement against illegal delivery services.
The Bigger Picture
San Diego’s approach is a reminder that smart regulatory adjustments can make a real difference for both the industry and municipal budgets. As cities across California grapple with budget shortfalls and the ongoing challenges of the legal cannabis market, expanding dispensary hours is a proven, low-risk strategy to increase tax revenues and support a thriving, regulated cannabis sector.
Los Angeles has the opportunity to follow San Diego’s lead with cannabis. The “City of Angels” can maximize its economic potential in the cannabis industry with a small tweak. With a few extra operating hours, the cannabis industry could be further legitimized while bringing more tax revenue to the city. Hopefully, with expanded hours, other reforms will follow. The time to act is now.
What do you think? Should Los Angeles adopt similar policies to boost tax revenues and support its legal cannabis businesses?
