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City officials review reports on unlicensed cannabis activity, cite data gaps and enforcement limits
Summary
City departments presented reports estimating lost tax revenue from unlicensed cannabis sales and outlined enforcement limits; social equity applicants urged faster permitting and clearer pathways into the regulated market.
Los Angeles City Council Government Operations Committee members heard reports on unlicensed commercial cannabis activity and discussed gaps in data, enforcement practices and potential regulatory steps to reduce illicit sales and recover revenue.
City staff and police told the committee that estimates of unrealized tax revenue from unlicensed retail and cultivation ranged roughly from $18 million to $20 million based on 2022 data, but departments cautioned the figure is a very rough estimate. Matt Crawford of the Office of Finance said, "these are very, very rough estimates," noting the office lacks authority to collect taxes from unlicensed operators under current law.
The nut of the discussion: committee members and presenters said illicit retail and grow operations undercut licensed social equity operators and that enforcement and data collection are uneven. Detective Mike Boyles, officer in charge of the Los Angeles…
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