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What are the soft caps on license types?

The City of Los Angeles has placed “soft caps” on the number of cannabis businesses permitted in any one area of the city to avoid “undue concentration” of marijuana businesses.  Currently, the limits are as follows:

  • Retail: One retail facility per 10,000 residents.
  • Manufacturing: One Type 7 (volatile manufacturing) license per 7,500 residents.
  • Cultivation: One square foot of canopy for every 350 square feet of land zoned M1, M2, M3, MR1, and MR2 with a maximum aggregate of 100,000 square feet of cultivated area and a maximum aggregate number of 15 Licenses at a ratio of one License for every 2,500 square feet of allowable cultivated area for Cultivation (Types 1A, 1C, 2A, 3A, 4 and 5A).
  • Microbusiness: One Type 12 license per 7,500 residents.  If the microbusiness conducts retail operations, it must comply with the rule of one license per 10,000 residents.  If it conducts cultivation operations, it must comply with those limits as well.

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