WEST HOLLYWOOD—The West Hollywood City Council approved ordinances on Monday, November 6 that would regulate the recreation marijuana industry within the region. City Council will take a final vote on the tentatively approved ordinances during its next meeting.

City Council agreed to license up to eight each of the following: retail marijuana stores, medical dispensaries, marijuana smoking lounges, and marijuana delivery services. Mayor Pro Tempe John Duran stated he believed competition between prospective businesses seeking to obtain licenses would be very competitive.

A point-based system will determine which business will receive licenses. The system will take into account a number of factors, including operating procedure, store security features, previous marijuana industry experience, and ability to comply with state, local, and federal employment policies.

City Council did not reach an agreement on the exact procedure in which applications would be reviewed. One proposal would create an evaluating committee composed of three or more members with experience in city government and the cannabis industry.

During Monday’s meeting, councilmembers also voted to reject a requirement that would have required at least two people to be in any vehicle transporting marijuana to customers. The proposal was rebuffed on the grounds that it would unfairly and drastically increase payroll costs for the businesses.

The city of West Hollywood was told to have its own ordinances in place regarding the sale of recreational marijuana before January 1, 2018, or it would give up its responsibility of the issue to state jurisdiction.

City Council expects to receive up to $300,000 in additional sales tax revenue yearly from the cannabis business in the region. In addition, over $400,000 dollars in fees are expected to be raised by the license application process.