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Cannabis retailers press council on taxes, enforcement and equity; operators say illegal market still dominant
Summary
Multiple licensed cannabis business owners and industry representatives told the council during public comment that high taxes, insufficient enforcement and licensing bottlenecks are harming legal retailers and allowing thousands of unlicensed dispensaries to operate in Los Angeles.
Several licensed cannabis operators and industry representatives spoke during public comment at the Los Angeles City Council meeting on May 1, 2025, urging immediate policy and enforcement changes to stabilize the legal cannabis market.
Brandon Brinson, who identified himself as the operator of a licensed cannabis store in Los Angeles, said legal businesses are overburdened by taxes, reporting a 42% tax burden and a lack of enforcement against unlicensed operators. He characterized the Department of Cannabis Regulation (DCR) as failing to enforce rules while legal stores paid high taxes.
Another licensed store operator described being promised equity and reparative support during licensing but said investors shut her out; she detailed steep overhead (including $25,000 monthly rent), repeated break‑ins, and high security costs. She said legal operators face an unfair competitive disadvantage and pleaded for council intervention.
A representative identified as Jared Kylo (UCBA) and Edgar Torres (representing licensed social‑equity and regular licensees) provided figures the speakers said were current in 2025: roughly 600 licensed companies in Los Angeles county generating significant sales and tax revenue, contrasted with an estimated 3,792 illegal cannabis retailers in the city. The speakers urged lowering gross‑receipts taxes, halting new rounds of equity retail licensing until enforcement improves, and directing city resources to support licensed businesses and collect outstanding revenue.
Ending: Speakers asked the council to reject new fee studies or DCR salary increases tied to enforcement failures, pass measures to stabilize legal retail, and implement better enforcement against unlicensed retailers. No council motion or vote on these specific cannabis policy changes was recorded in the May 1 excerpt.
