As deadly wildfires rage across Los Angeles County, licensed cannabis businesses are enduring a variety of challenges as they struggle to maintain operations during this tumultuous crisis.
With more than 10,000 structures destroyed in the region, according to the Department of Forestry and Fire Protection, officials are estimating it may be one of the costliest wildfires in U.S. history. Like many other businesses, dispensaries across L.A. have had to navigate a new normal due to the surging fires.
“We’re definitely being hit by the smoke and power outages,” said Adriana V. (who wished to withhold her full name), inventory manager at Green Earth, a dispensary in Highland Park, a few miles southwest of the Pasadena fires. While they remained open on Thursday, they had to close on Wednesday due to the heavy smoke enveloping the neighborhood.
“We all still are getting headaches from the smoke,” she said.
But when they did open on Thursday, she was surprised to see a surge of customers. She compared the buying rush to “a Friday on a normal week, our busiest day, and maybe everyone is so stressed out about the fires, they need to find a way to relax.”
What has been challenging, though, is facing a drop in shipments from vendors who decided not to deliver any products during the week. “Those are our biggest vendors so that’s around a quarter of our inventory that we don’t have now,” Adriana said.
The announcement of mandatory evacuation zones has forced the hand of several dispensaries, such as 99 High Tide in Malibu, which decided to close for the entire week.
But Harvest of Santa Monica remained open despite being 2 miles from the evacuation zone.
“We’re monitoring the news and ensuring our staff is OK, and so far we’re lucky in that our staff haven’t had to evacuate as most of them live east of the fires, and we haven’t had to either,” said Harvest store Manager Stephen Ratino.
If there’s any issue he finds thorny, it’s a new directive from the Department of Cannabis Control (DCC). While he appreciates the department’s announcement that license holders can request disaster relief from the agency, he is confused about the particular wording of another policy: Licensees “affected by the fires” have to notify the DCC if they decide to move their cannabis to another location.
“Thing is, we’re two miles away from the fire and it could be encroaching on us in the coming days,” Ratino said, “and so I’m not affected by the fires exactly, right now, but I’d like to move some product as a precaution. Why do I have to wait for official evacuation orders to get going on setting up transfers and moving inventory?”
Ratino said he has been in contact with local fire department officials to help him assess the best steps moving forward.
The California Cannabis Industry Association (CCIA) posted on LinkedIn:
“… The Department of Cannabis Control (DCC) is making disaster relief available to impacted licensees. Those facing immediate wildfire threat do not need to contact DCC before moving cannabis or cannabis products. More information is available on DCC’s website or by contacting [email protected].
CCIA is continuing to closely monitor the situation. As more information is available, we will share additional ways to support those impacted and and [sic] will advocate for policies and relief measures that support the resilience of California’s cannabis industry.
To our community: stay safe and stay strong. We are in this together.”
Cannabis Business Times has reached out to the DCC for comment.
“We are encouraging members to share their specific challenges with us so we can advocate for targeted relief efforts at both the state and local levels,” CCIA Legislative Advocate Amy O’Gorman Jenkins told Cannabis Business Times. “This includes facilitating connections to support services and exploring industry-wide solutions to address longer-term impacts, such as financial recovery and operational continuity.”
O’Gorman Jenkins also said cannabis businesses should document damage and impacts: “We encourage businesses to document damages for insurance claims or any future government relief programs. Comprehensive insurance coverage is critical in these situations, and we hope most businesses have the necessary protections in place to mitigate losses.”
In addition, O’Gorman Jenkins said that “CCIA will be exploring opportunities to work with the administration, regulators and state legislators to address the unique needs of the cannabis industry, such as improving access to recovery funds.”
CCIA “has not received reports of substantial physical damage to cannabis facilities,” she said, but “there are certainly concerns about operational disruptions due to the fires. These include interruptions to supply chains and employee displacement. Additionally, the emotional toll on employees is significant, particularly for those who have been evacuated or are facing the loss of their homes.”
Businesses near evacuation areas should “regularly review and practice evacuation and emergency response plans to ensure readiness,” O’Gorman Jenkins said.
Cannabis operations may also be threatened residually by the fire, especially as studies have revealed how wildfire smoke exposure can damage the plants. But more often than not, L.A. grows are largely indoors, Ian Rassman, executive director of Los Angeles NORML, said.
“But even with indoor operations, we know they’re going to be challenged by the many power outages we’ve been experiencing,” said Rassman, who had to evacuate with his family from their Altadena home to temporarily live with his sister. “My own home hasn’t had power since Tuesday.”
He recognized how these facilities could be severely hampered by outages. “Lights have to work, refrigeration is critical, and indoor grows may be really impacted by the fires even if they aren’t in the face of danger,” Rassman said.
What may also be concerning for cultivation and dispensary teams is a wall of silence over how to proceed. “I heard from one dispensary whose owner didn’t communicate to staff how they should operate during this week, and that’s something that just can’t happen now during this crisis,” he said.
“I’ve lived in L.A. for 39 years and I’ve seen my share of natural disasters, but this is as close to Armageddon as I’ve ever seen,” he said, “and I’d love to see everyone, from retailers to licensees, work together and forget about being competitive, and support each other the best they can.”
Rassman also urged the DCC to allow for temporary regulatory waivers and “to really listen to what folks are saying about the help they need and to streamline proactive measures to support operators.”
He added that an area that shouldn’t be neglected is patient access to cannabis: “We need to be conscious that patients need medical cannabis, and we should ensure dispensary workers can still deliver to them, even during emergencies such as what’s happening now in L.A.”
David Silverberg is a freelance journalist who writes about cannabis and the cannabis industry.
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