Tensions are running high in Los Angeles City Hall about cannabis licensing since the introduction of City Council’s Motion on October 29th that would require the Department of Cannabis Regulation to accelerate their program.

When introducing the Motion, City Council remarked how Social Equity Applicants have lost investors as a result of the slowdown. DCR Director, Cat Packer, and the Cannabis Regulation Committee have concerns with the Motion, stating the unintended harm it could cause to the DCR’s Social Equity Program outweighs any potential benefit. In an attempt to strike a middle-ground, the Planning and Land Use Management (PLUM) Committee support the Motion with amendments, including the request for the DCR to conduct an Equity Share review before a Temporary Approval Application is submitted to ensure Social Equity Applicants are, in fact, receiving majority ownership interest before the application is processed.

Also at issue is the speed in which these changes would be implemented. City Council and PLUM want the City Attorney to prepare the Ordinance with an urgency clause, whereas the DCR and Cannabis Regulation Committee want more time to discuss their significant revisions to the Motion.

The Motion is still working its way through various committees in City Hall so there is still plenty of time for both sides to reach a compromise on changes to the DCR licensing program. Track the Council File here.

As always, Clark Howell will keep you up to date on new developments.