Wildfires Disrupt California’s Cannabis Industry: A Growing Challenge for Businesses and Employees

LOS ANGELES–The raging wildfires in Los Angeles County, notably the Pacific Palisades fire, have become the most destructive in the city’s history, severely impacting local cannabis businesses. As of January 8, 2025, multiple fires—including the Palisades, Eaton, Hurst, and Woodley fires—have burned over 26,000 acres, prompting widespread evacuations and disrupting daily life.

Impact on Cannabis Businesses

Cannabis dispensaries in the greater Los Angeles area are facing significant challenges. Mandatory evacuation orders have forced several dispensaries to close, including the prominent 99 High Tide dispensary in Malibu. Others are operating without clear guidance or emergency protocols from management, leaving staff uncertain about contingency plans. For instance, a budtender at Farmacy Westwood near UCLA’s campus reported a lack of communication regarding emergency procedures.

The fires, driven by Santa Ana winds reaching up to 60 mph with gusts of 100 mph in some areas, have created a patchwork of closures across the normally bustling cannabis retail landscape. Some dispensaries remain open, while others have closed due to proximity to evacuation zones or smoke conditions.

Economic Challenges

The cannabis industry in California is already economically strained, and the wildfires exacerbate these challenges. The California Cannabis Industry Association has expressed concern about both immediate and long-term impacts on businesses and their employees, particularly those already navigating economic and regulatory hurdles. The organization notes that the Department of Cannabis Control (DCC) is making disaster relief available to affected licensees, who can evacuate cannabis products without prior authorization if facing immediate fire threats. 

Support and Relief Measures

In response to the crisis, industry leaders are coordinating support efforts through informal networks, such as a text thread of approximately 50 dispensary owners who share updates and offer mutual aid. The DCC’s disaster relief program allows licensees to request temporary waivers of regulations when they cannot meet the rules due to a declared disaster and to move cannabis goods to another location immediately to prevent loss, theft, or degradation. To request disaster relief, businesses can use Form DCC-8101 and submit it to [email protected].

The wildfires in Los Angeles County have posed significant challenges for cannabis businesses, affecting operations, staff, and the broader industry. While the DCC’s disaster relief program offers some support, the industry must continue to collaborate and seek additional resources to navigate these unprecedented challenges.