For more than two years, dispensary owners in Sacramento were barred from engaging in business transfers or sales. That’s changing, now that city council members voted to overturn the policy.
As the Sacramento Bee reports, moving forward, dispensary owners may sell off a majority of their business.
Furthermore, dispensary owners may pick up ownership stakes in other dispensaries, too. Those minority stakes are limited to 5%. The goal, according to city officials, was to broaden the playing field and allow new entrants into the local marketplace.
“What we put forth today is a symbol that we are serious about a good business environment,” said Sacramento Mayor Darrell Steinberg.
City council originally clamped down on ownership transfers after Ukrainian businessman Andrey Kukushkin quickly acquired nearly one-third of all Sacramento retail licenses in the earlier years of the local market. Kukushkin, in 2019, was caught up in a federal investigation into campaign finance crimes. A probe of Kukushkin’s business interests at the time brought about greater scrutiny from Sacramento law enforcement—and a review of licensing rules.
As of now, the city of Sacramento has 30 dispensaries within its borders.
Coming soon, the city will see 10 new dispensaries open under new social equity regulations.
