Council members urged to halt new cannabis licenses amid social equity challenges

As the sun rose over Los Angeles on June 3, city council members gathered in the bustling chambers of City Hall, ready to tackle pressing issues surrounding the local cannabis industry. The Government Operations Committee meeting commenced promptly at 8:35 AM, with council members Padilla and Lee present, while Hirado was notably absent. The atmosphere was charged with anticipation as public comments began, focusing on the challenges faced by social equity cannabis operators.

Among the speakers was Alexis Luna Reyes, a passionate advocate for social equity in the cannabis sector. As the owner of JC Rad, a business operating since 2019, Reyes urged the council to halt any increases in annual renewal fees for social equity operators. She emphasized the need to pause the upcoming lottery for new cannabis licenses until existing issues within the social equity program are resolved. "The support we were promised has been limited," she stated, highlighting the struggles that many operators continue to face.

Damian Martin, co-founder of Catalyst Cannabis Co., echoed Reyes' sentiments, expressing frustration over the Department of Cannabis Regulation's (DCR) approach to licensing. He criticized the DCR for prioritizing fee collection over supporting licensed operators, stating, "The madness just has to stop." Martin pointed out the proliferation of unlicensed operations in the city, arguing that the DCR's focus should shift towards enforcement rather than adding more licenses.

Elliot Lewis, also from Catalyst Cannabis Co., called for "radical change" in the cannabis regulatory landscape. He urged the council to consider whether their policies were strengthening the legal market or inadvertently bolstering the black market. "Right now, the legal market is getting treated substantially worse than the black market," he lamented, calling for a reevaluation of the current system.

As the meeting progressed, the council members listened intently to the concerns raised by these operators, who represent a vital segment of the city's economy. The discussions highlighted the ongoing struggles within the cannabis industry, particularly for those striving to operate under the principles of social equity.

The meeting concluded with a sense of urgency surrounding the need for reform. As the council prepares to deliberate on these issues, the voices of social equity operators resonate strongly, advocating for a fairer and more supportive environment in Los Angeles' cannabis market. The outcome of these discussions could significantly impact the future of cannabis regulation in the city, making it a pivotal moment for both operators and consumers alike.