Operators, advocates urge Los Angeles to audit cannabis equity spending, cite licensing delays and illegal dispensaries

Dozens of operators with equity licenses, business owners and community advocates used the Budget and Finance Committee’s public-comment period to press the city for an independent audit of cannabis equity funds and changes to licensing and enforcement.

The comments, centered on agenda item 13, focused on long licensing delays, high fees and what speakers called the city’s failure to stop illegal dispensaries that undercut licensed operators. “Antes de que empiece, … necesitamos transparencia, supervisión y acciones correctivas,” said Eya Allen, who identified herself as the owner of Dove Sugar Cannabis.

Why it matters: Equity-licensed operators said the program was intended to repair harms from past enforcement of drug laws, but that delays and fees have instead left many operators deep in debt or facing closures. Several speakers asked the committee to adopt stronger oversight, grant relief and measures to shut down illegal sellers.

What speakers asked for - An independent, full audit of how equity funds and state grant dollars have been spent and whether the funds reached intended beneficiaries. Multiple speakers used the term “auditoría completa.” - Debt relief or fee forgiveness for equity operators who said they paid large sums while illegal sellers operate without licensing or tax obligations. - Faster processing of state or departmental approvals so licensees can operate once state approvals are in place, and clearer rules about annual fees for operations that have not yet opened. - Stronger enforcement against illegal dispensaries and measures to make city supports (technical assistance, operational grants, workforce development) actually available to equity operators.

Among those who spoke, attorney Devin Martin, co-founder of Carolless Cannabis Co., warned that the city’s current approach risks using equity funds to fill general-budget shortfalls rather than restoring harmed communities. “If you really care about equity, the people affected must be included in decisions about spending,” Martin said, referring to state and city equity grant rules.

Several licensed operators described large financial losses and unpaid debts. Tere Betis, who said she lost $250,000 and still faced heavy fees, told the committee she followed rules and waited for licenses but was left carrying the costs. “Necesitamos equidad, necesitamos subsidios directos para los pequeños negocios,” she said.

Committee response and next steps The public-comment block did not include any committee action on the requests. Committee members acknowledged the concerns during later budget discussion and questions about departmental performance and finance but did not announce an immediate audit or specific directive in the meeting record.

Details from the comments - Numerous speakers referenced $3.5 million proposed increases for equity-related subsidies and asked that any additional funding be coupled with accountability measures. Several speakers also referenced state-level equity guidance (SB 1294 was cited by one commenter as the state law framing cannabis equity funding). - Commenters asked for technical assistance categories including operational support, workforce development, and grants to repay debts and cover reopening costs. - Repeated complaints included annual licensing fees charged while state approvals or department sign-offs remain pending.

Ending: Committee members acknowledged the volume and intensity of the comments during later budget debate; no vote or formal direction tied directly to the public comments appears in the transcript.