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Equity cannabis operators urge committee to halt fee increases, call for investigation of cannabis regulator
Summary
Equity applicants and operators told the Government Operations Committee that proposed fee increases and administrative practices at the city's cannabis regulator threaten small businesses and called for a moratorium on new equity licenses and an investigation of department leadership.
At a meeting of the Los Angeles City Council Government Operations Committee, equity cannabis applicants and small operators urged committee members to halt proposed fee increases for commercial cannabis licensing, request an investigation into the department that regulates cannabis, and impose a moratorium on new social-equity licenses.
Evelyn Scott, who identified herself as an equity operator in Council District 10, told the committee: "Estamos aquí el día de hoy para decir, basta, es suficiente, es suficiente." She said the city is proposing $10,000,000 for the department that regulates cannabis and described proposed fee hikes and additional charges as threatening the survival of many small operators.
The concerns were echoed by Brandon Bissel of Create Paradise, who accused departmental leadership of mismanagement and said: "No les vamos a permitir que siga la corrupción mientras nuestras comunidades sufren." Christopher Martínez, an equity applicant and operator, said the permitting, tax and fine processes "no funcionan" and described receiving multiple notices and penalties during and immediately after launching operations.
The public comments focused on several recurring themes: presenters said the department has increased fees and fines, that payments and application processing can take 24 to 48 hours to post, and that equity applicants face extra fees identified in the transcript as "section 420" (an additional equity fee referenced by speakers). Speakers asked the committee to (1) place a moratorium on new social-equity licenses until the equity program is restructured under leadership that understands economic development and social equity; (2) investigate the Department of Cannabis Regulation's management and finances; and (3) provide clearer, accessible language and timing information about enforcement and fee classifications so small operators can comply.
Speakers repeatedly described long delays in processing and enforcement actions. Sharon Adison said people were waiting "6, 9 months" for responses. Several speakers said extensions have been issued to some applicants and that some funds may be diverted to payroll and outside contractors rather than to direct support for equity applicants.
Committee members did not take a final action on cannabis fees during the meeting; staff presented an update on proposed fee adjustments and answered members' questions about enforcement rubrics and classification of violations. The presentation included discussion about categorizing violations (low/minor/moderate/major/severe) and concerns that proposed language in the fee update could be confusing for applicants who must meet different compliance thresholds.
Speakers listed the financial stress of multiple charges, fines and apparent double payments; one commenter asked finance staff whether businesses that had already paid under the current state rules would be reimbursed or credited once the city changes its practice. Committee members asked the administration for additional economic analysis and clearer documentation on how fee revenues have contributed to budget proposals.
The committee did not adopt policy or change fees at the meeting; the discussion closed with requests from council members that staff return with more detailed revenue and process information for further review.
