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Dozens of social‑equity cannabis operators urge council to reform DCR, delay fee increases and release grant funds
Summary
Dozens of social‑equity cannabis applicants, licensees and advocates used the council’s public‑comment period on April 23 to press for immediate reforms to the city's cannabis equity program and for urgent relief from fees and enforcement pressures.
Dozens of social‑equity cannabis applicants, licensees and advocates addressed the Los Angeles City Council during public comment on April 23, urging immediate action to stabilize the legal cannabis market and to deliver on long‑promised equity supports.
Speakers representing social‑equity retailers and applicants described repeated delays in grants, unclear licensing guidance, and heavy fees and penalties that they say have left many operators unable to survive while unlicensed shops continue to operate without enforcement. Several speakers called for the Government Operations Committee to adopt a "Cannabis Equity Reform and Market Stabilization" motion, move the social equity program to the Department of Economic Development, extend the equity program timeline to align with state law (SB 51), and disband or restructure the Department of Cannabis Regulation (DCR).
"We're being taxed into extinction while unlicensed shops flourish," said Whitney Beatty, who identified herself as a social equity retailer. Other speakers said they faced militarized state raids, large tax bills and missed grant disbursements that worsened cash shortages. Several commenters said the city received state equity funding intended for support but that disbursements had been slow or withheld.
Multiple commenters asked the council to withhold approval of fee increases until DCR fixes licensing and administrative processes and until an independent third party performs the required fee study. Speakers requested immediate meetings with council members and asked for concrete deadlines and evidence that the city will enforce the license regime against unlicensed retailers.
Why it matters: social‑equity programs were designed to remedy past harms from the war on drugs by enabling affected entrepreneurs to participate in the legal market. Speakers warned that without rapid corrective action the city risks losing licensed equity operators and the public benefits those businesses provide.
What the council did: the remarks were delivered during the public‑comment period; council members acknowledged receiving the testimony. No specific council vote on the reform package was recorded in the meeting transcript; members indicated they would consider related motions in committee.
Speakers and groups heard on the record included social equity retailers and applicants, the Black Los Angeles Cannabis Council, Catalyst Cannabis (a company CEO spoke), and individuals identifying their businesses and specific burdens. Common asks: (1) adopt the Cannabis Equity Reform and Market Stabilization motion; (2) move social equity program administration to Economic Development; (3) align program timelines with SB 51; (4) pause fee increases and require an independent fee study; (5) release state equity grant funding to eligible applicants.
