Cannabis business owners urge council to reject proposed fee increases during public comment

A sustained public-comment period at the Aug. 5, 2025 Los Angeles City Council meeting featured repeated appeals from cannabis business owners, industry representatives and advocates who asked the council to reject proposed fee increases and to restore or expand direct financial supports for equity applicants.

Stephanie Right, who identified herself at the podium, told the council she has 17 years in the cannabis industry and urged members to reject fee increases and to expand social-equity support. “Es importante que usted rechace el ingreso ... incrementar las tarifas solamente va a dar un salario ... para los empleados de TCR,” she said, criticizing fee increases that she said would burden small operators.

Multiple other speakers, including business owners who said they had just obtained city licenses, described large cumulative fees and surcharges. One speaker who identified only as “Sunshine” said a new set of surcharges and fines could force recently licensed operators to close: “tener que enfrentar 3 30000 dólares en en recargos hace imposible ... voy a tener que cerrar mis negocios si no puedo encontrar un inversionista.” Another speaker representing a business association described competition with an estimated 4,000 illicit dispensaries and urged the council to consider a fee structure modeled on Long Beach and to restore grant support for equity applicants.

Calls from the public included these recurring points: (1) the proposed fee increases would raise operating costs significantly and risk pushing businesses into the illicit market; (2) the city should resume direct grants and prorated reimbursements to licensed social-equity applicants; and (3) the city’s current fee-study and fee-adoption process lacked sufficient public input. Speakers requested a pause on fee increases until the Department of Cannabis Regulation or equivalent agency completes a public fee study and stakeholder outreach.

Why it matters: The cannabis industry told the council that higher local fees could accelerate closures of licensed businesses, reduce city tax receipts over time and strengthen the illicit market — outcomes the speakers said would worsen public-safety and neighborhood impacts.

What’s next: The transcript records extensive public comment on this topic; the public-comment speakers urged the council to reject the fee increases. The transcript does not record a final council vote on fee changes during this meeting; any formal council action would appear in a later agenda item or committee report.