Not all California cities embracing marijuana when it becomes legal in 2018

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Recreational marijuana becomes legal in California on Jan. 1, but some SoCal cities are not allowing dispensaries to operate.

Recreational marijuana becomes legal in California on Jan. 1, 2018, but not all cities are embracing pot sales.

Some cities, like Glendale, Pasadena and Burbank, are not allowing recreational pot dispensaries, citing health and safety concerns.

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On the other hand, other Southern and Northern California cities are embracing the new law. West Hollywood was one of the first to endorse Proposition 64 before it was approved by California voters. And in Santa Ana, city officials note that allowing dispensaries can generate sales tax revenue and grant funding.

"If cities decide to ban or just not regulate, they're not eligible for some grant funding that will help us deal with illegal dispensaries," said Santa Ana city manager Raul Godinez.

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He said his city expects to receive from $2.3 million to $7 million in sales tax revenue from legalized marijuana sales.

Derek Peterson, CEO of Terra Tech, which operates dispensaries in Nevada and California, said the company is expecting to see a big increase in sales come Jan. 1.

In Nevada, he said, sales tripled when recreational pot became legal on July 1. He doesn't expect the boom to be quite that big in California because of the size of the market already, but he is expecting a sizable jump in sales.

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