Dozens of California cities, counties could OK new recreational marijuana markets

(This story and the graphic above have been updated to reflect that up to 150 retail licenses could be created through ballot measures in November.)

More than two dozen California cities and counties could establish new recreational marijuana markets through ballot measures in November, creating up to 150 retail licenses and countless other business opportunities for plant-touching and ancillary companies.

All in, at least 28 municipalities are in line to include some cannabis ballot initiatives this fall, the largest cohort since California started regulating adult use in 2018, according to MJBizDaily research.

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“These upcoming ballot measures are encouraging,” said Dirk Voss, director of compliance and government for Zen Cannabis, which sells edibles and other THC- and CBD-infused products in California and other states.

“If passed, it will open up additional operational dispensaries throughout the state if those cities move forward and actually license dispensaries at the local level.”

The majority of referendums will ask voters to approve or prohibit marijuana businesses, particularly retail.

A handful of municipalities, including Huntington Beach in Orange County, Healdsburg in Sonoma County and Avenal in the Central Valley, will address local prohibition through marijuana business tax measures that would essentially pave the way for regulated markets – provided they’re approved.

The voter-led ballot drives would eventually help minimize wide gaps in consumer accessibility, as a solid majority of cities and counties across the state still ban commercial marijuana operations.

“This could lead to 125 to 150 new retail licenses, which is significant,” said Hirsh Jain, founder of Los Angeles-based cannabis consultancy Ananda Strategy, which crunched the numbers.

Taking it to the ballot

Most of the ballot initiatives are centered near dense population centers in Southern California, particularly near L.A. and San Diego.

But some extend far north, including Red Bluff, where voters will decide whether to permit the first recreational marijuana businesses in historically conservative Tehama County.

If cannabis tax ballot measures pass as expected in the state’s most populous counties:

• Los Angeles County could approve as many as 25 stores.

• Sacramento County could OK 10-20 marijuana stores.

• San Diego County could license 20-40 retailers.

Those victories alone would add purchasing options for more than 15 million residents in the three combined counties.

The vast majority of retailers there are located in the counties’ namesake cities.

Elliot Lewis, the CEO of Catalyst Cannabis Co., is trying to change that.

The Long Beach-based retailer, which operates 13 outlets in the L.A. market, has bankrolled more than $500,000 with industry partners to fund signature and ballot campaigns this fall in several cities in the South Bay, including Redondo Beach, Manhattan Beach, Hermosa Beach and El Segundo, located only a few miles west of Los Angeles International Airport.

“When cities see us circulating something, they’re going to take us much more seriously,” Lewis said. “We don’t have to take everyone to the ballot.

“We want to peacefully negotiate with cities on some resolution.”

Other cities expected to have cannabis ballot measures include:

• Dana Point.

• Lake Forest.

• Ontario.

• Pacific Grove.

• Riverside.

• Sausalito.