Beverly Hills allows medical cannabis to be delivered from stores outside city limits but currently prohibits cannabis businesses in the city. (photo by Joey Waldinger)

As cannabis dispensaries have proliferated across the Los Angeles region in recent years, Beverly Hills has been a rare holdout, outlawing all commercial cannabis businesses in the city.

According to the city’s current commercial cannabis ordinance, adopted Aug. 8, 2017, “no person shall establish, operate, maintain … or engage in commercial cannabis activity anywhere within the city.”

A draft ordinance before the city’s Planning Commission on Aug. 24 is expected to change that, if only slightly. The ordinance, which allows for delivery medicinal cannabis retailers within city limits, is a city-led effort to comply with a new state law taking effect in January 2024, Planning Commissioner Myra Demeter said. That law prohibits cities from enforcing regulations that block the establishment of businesses that deliver medicinal cannabis. The ordinance grew out of a meeting in June where Demeter, Planning Commission Vice Chair Gary Ross, City Councilwoman Lili Bosse and Vice Mayor Lester Friedman discussed how the city could reasonably regulate the businesses.

“It was really a very collaborative effort,” Demeter said. “We understand we have to be in compliance with the state law and are trying to do this while being mindful that we have to protect our residents of all ages, so that’s how we went into this conference.”

Senate Bill 1186 prohibits cities from adopting ordinances that limit the number of delivery medicinal cannabis businesses, operating hours, frequency of delivery sales and the types or quantities of medical cannabis sold for delivery.

Under the ordinance being considered on Aug. 24, medicinal patients can present a prescription at a dispensary and have the cannabis delivered to a location, but they cannot receive the cannabis while in the store, Demeter said.

She added that the city already allows dispensaries outside Beverly Hills to deliver to residents within city limits.

The draft ordinance also limits the retailers to areas of the city zoned for commercial businesses and from being located on the ground floor of a building or near parks, schools and day care centers, Demeter said.

According to a staff report, the businesses will also be prohibited from selling merchandise and promotional materials, and will be subject to application and annual inspection fees.

Demeter added that the city might impose security requirements, since some of the businesses might be cash only due to an ongoing federal prohibition, and that prospective store owners would have to apply for conditional use permits from the Planning Commission.

“We’re hoping everybody will comply, it’s pretty simple,” Demeter said. “There should be no exchange of medical cannabis or anything happening at these sites. There will be presentation of prescriptions but there will be no exchange.”

So far, Demeter has not heard any complaints from residents concerned about the draft ordinance, nor has she heard from residents who want the city to further relax its cannabis regulations to reflect those of neighboring cities.

“Believe me, if there were concerns our phones would be ringing or people would stop me in the supermarket or on Beverly Drive,” Demeter said.

She added that the commission may suggest some changes to the liaison’s recommendations, and if approved the ordinance will then go before the City Council.

Though Demeter declined to speculate exactly when the ordinance will be approved by the council, she said she is confident it will be signed before the state law takes effect at the beginning of next year.