How Recreational Marijuana Will Change L.A. — and How It Won’t

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Los Angeles' green rush started 10 years ago, when entrepreneurs opened the doors of hundreds of medical marijuana dispensaries. Not everyone was on board.

Critics and activists decried the invasion of dispensaries into neighborhoods like Eagle Rock and South Carthay, and the city cracked down. In 2007 a moratorium was declared in L.A., and about 135 dispensaries that had registered with the city at the time were ultimately grandfathered in as quasi-legitimate. That didn't stop a free-for-all explosion of illicit storefronts. Despite 2013's voter-approved Proposition D, which outlawed pot shops while allowing "limited immunity" from prosecution for those 135, state tax officials estimated last year that there were still 935 "active cannabis businesses in the city of Los Angeles," which would be more than the number of legal pot outlets in the entire state of Colorado.

With recreational pot aiming for California's November ballot, a new wave of entrepreneurs has...

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