Council committee approves pause on 2025 cannabis license lottery, directs fee study and limited exemptions for equity applicants

The Los Angeles City Council9Committee on Government Operations on June 3 approved a motion to pause the Department of Cannabis Regulation9(DCR) license lottery planned for 2025 and directed staff to pursue a multi-part review of proposed fee increases and related policy issues.

The instruction package, introduced by Councilmember Padilla and approved by the committee, asks the City Administrative Officer to commission a three-part independent study of DCR cost-recovery fees and tax impacts; directs DCR to produce a follow-up report on application processing times and enforcement revenues; and asks the City Attorney to prepare ordinance language to amend city code provisions related to DCR fee and process changes. The committee also approved a three-year exemption from the proposed fee increases for applicants under the city99s social-equity program.

Why it matters: Committee members and dozens of public commenters said the local cannabis industry is struggling under current fees, heavy taxation and a proliferation of unlicensed sellers. Committee members framed the pause and the directed studies as steps to better align fees with actual department costs, examine possible subsidies or temporary mitigation and ensure equity applicants are not unduly penalized while the city refines licensing processes.

DCR Assistant Director Jason Kleen and a returning DCR official…