California regulators suspend cannabis businesses to ensure the state’s industry is fully regulated and operating like those in more mature markets. 954 businesses that the agency identified as potentially operating without full legal permission.
64 percent of those are in the Los Angeles metro area. The number of letters targeting businesses in L.A. and its surrounding municipalities is 393. The cannabis bureau is responsible for licensing retailers, delivery services, micro businesses, distributors and testing labs.
The cannabis bureau‘s list includes 1,245 entries, though 291 of those businesses appear to be duplicates. The remaining 954 businesses are either unique entities or part of companies with multiple locations.
954 out of 153 are marijuana delivery services, based on an MJBizDaily analysis. However, that percentage could be much higher considering the number of businesses on the list that don’t have an address or region.
It’s difficult to determine how much of an effect they’re having, because it’s tough to judge how many recipients are interested in taking part in the regulated market and how many are illegal operators trying to avoid paying taxes and licensing fees.
Traverso couldn’t specify how many letter recipients have responded to the bureau or begun the licensing process because of the letter campaign.
Traverso said, “it’s slow going, but so far, we’re relatively encouraged by the number of people who received the letter.”
MJBizDaily was able to confirm that of the 954 companies sent letters by the bureau, 76 still have operational websites and 22 others’ websites have been deactivated or taken down.