By Jason Beck
ORIGINAL HA9N Story
On the morning of Tuesday, January 7, a fire started on the hill above Urbn Leaf, the only
cannabis dispensary on the Sunset Strip. Thanks to mutual aid agreements, Los Angeles
County firefighters quickly responded to the fire, despite it starting outside of their jurisdiction.
Although a generational wind-storm was underway, the firefighters of West Hollywood’s Station
8 quickly responded, closing down Sunset Boulevard and many businesses in harms way.
According to Urbn Leaf and Pink Dot owner Sol Yamini, by 11 AM, the unnamed fire was
knocked down, with all employees of Urbn Leaf and its sister convenience store Pink Dot
reported safe.
Unbeknownst to residents of Los Angeles, this fire was just the beginning of an historic series of
fires, destroying a tens of thousands of structures from worknig-class neighborhoods like
Alhambra to the glitzy coastal enclave of Malibu.
As wildfires continue to blaze through the Los Angeles area, cannabis patients and businesses
face unique challenges due to federal prohibition of the plant.
At one point, more than 200,000 individuals were subject to mandatory evacuation orders as a
result of the Palisades, Eaton, Sunset, Hurst, Woodley and Kenneth.
For cannabis patients who lost their homes, moving into housing provided by the Federal
Emergency Management Agency poses additional challenges.
According to FEMA guidance to evacuees of previous disasters, possessing or consuming
cannabis in emergency housing is illegal and may be prosecuted, even if State laws allow it: 1
“Despite cannabis laws in the various states, cannabis is illegal under federal law.
The federal government regulates drugs through the Controlled Substances Act
(CSA) (21 U.S.C. § 811). Under federal law, cannabis is treated like every other
controlled substance, such as cocaine and heroin. Under the CSA, cannabis is
classified as a Schedule 1 drug. Therefore, cannabis activity in and around FEMA
housing is a violation of federal law and would be a basis for federal criminal
and/or civil action.”
Medical patients that rely on cannabis to treat a variety of conditions from anxiety to insomnia
will not have access to their treatment in or near FEMA-provided housing.
The Federal prohibition on cannabis also complicates recovery efforts for cannabis businesses.
Although there were no cannabis dispensaries in the Pacific Palisades or Malibu, up to five
cannabis businesses were located in the footprint of the Eaton Fire in Altadena and Pasadena.
The fate of these businesses is unknown at this time, as public safety officials have sealed off
the area as a potential crime scene.
Outside of those businesses directly impacted by the fire, cannabis businesses across Los
Angeles are facing economic and other damages as a result of the fires, smoke and
evacuations. Many had to close as a result of mandatory or voluntary evacuation warnings, and
make accommodations for employees unable to work due to evacuations.
No matter how large or small the impacts of the fires on cannabis businesses, if they want to
receive help from the federal government despite paying taxes for years, they are out of luck.
During the recent COVID Pandemic Emergency, the U.S. Small Business administration made it
clear that most cannabis businesses are not eligible for federal disaster programs 2 :
“With the exception of businesses that produce or sell hemp and hemp-derived products
[that were federally legalized under the 2018 Farm Bill], marijuana-related businesses
are not eligible for SBA-funded services.”
Despite these challenges, cannabis businesses in West Hollywood’s Emerald Village are doing
what they can to give back, supporting evacuees, first responders and the local community.
Cannabis consumption lounges in West Hollywood, California, are opening their doors and
welcoming evacuees seeking a space to safely and legally seek treatment or simply enjoy
cannabis.
Because West Hollywood cannabis lounges have extensive odor mitigation infrastructure,
several lounges, including PleasureMed, opened their doors for residents seeking a safe space
to escape the hazardous air quality conditions resulting from smoke from the fires.
Thanks to AB 1775, State legislation began allowing cannabis lounges in California to serve
non-infused food and beverages, which created an opportunity for cannabis businesses to give
back. At The Woods WeHo, first responders were offered free coffee, espresso beverages, soft
drinks and water, and medical patients were welcomed to safely and legally consume in The
Woods’ cannabis consumption lounge.
Absent Federal recovery support for cannabis businesses, it will come to local and state
governments to fill in the gap.
According to cannabis lawyer Julian Garcia, from Normal Consulting Group 3 , “California and our
local governments can immediately provide relief to the cannabis industry by temporarily
suspending cannabis-specific taxes. This would allow businesses to redirect funds to restoring
and maintaining basic operations, such as fulfilling employees’ paychecks and ensuring access
for medical patients and others who choose to consume to help manage the stresses of this
disaster. The short-term revenue impact is negligible compared to the long-term economic
damage of permanently losing countless small businesses and well-paying jobs. This is the time
for elected leaders to act decisively and demonstrate their commitment to equitable economic
resilience in our communities.”
Additionally, county and city governments can relax regulations and expedite permitting for
cannabis businesses seeking to relocate and reopen after sustaining damages from the fires.
disaster-relief-federal-agency-confirms/
Cannabis customers in Southern California seeking to donate first aid supplies, blankets, water,
masks, toiletries and non-perishable food for those impacted by the fires can receive a free
penny pre-roll at The Artist Tree West Hollywood, Beverly Hills and Koreatown locations.
The economic impacts of the firestorm are expected to far exceed $100 Billion, and the recovery
will take years.
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