LA Council Watch

Department of Cannabis Regulation (DCR) / Cannabis Tax Amnesty Program / Renew Licenses for 2027 / Regardless of Current Tax Delinquency Status

Council File 26-1321

Under review — the city created a timing mismatch that left cannabis operators unable to access promised tax relief before facing stricter renewal rules. This motion would let affected licensees renew for 2027 while the amnesty program catches up, but it's stalled in committee with an expiration deadline looming in 2028.

Introduced
2026-09-15
Last changed
2026-09-15
Status
open
Expires
2028-09-15
Committee
Public Works Committee
Mover
IMELDA PADILLA
Second
CURREN D. PRICE
References
Related Council Files: 25-1126; 25-0600-S125

Brief

Councilmember Imelda Padilla, seconded by Curren Price Jr., introduced a motion directing the Department of Cannabis Regulation to renew cannabis licenses for 2027 regardless of current tax delinquency status. The proposal effectively grants tax amnesty to cannabis operators who are behind on payments. The motion was referred to the Public Works Committee on September 15, 2026, and remains pending there.

Full summary

Councilmember Imelda Padilla introduced this motion in response to a timing problem that left roughly 125 cannabis licensees in an unworkable position during the Department of Cannabis Regulation's 2026 renewal period. The city had pursued two parallel policy tracks: a new ordinance tightening tax compliance requirements for license renewal, and a separate cannabis tax amnesty program that would let delinquent operators settle their debts through waived penalties and payment plans. The expectation was that both would take effect simultaneously on September 1, 2026, so that operators relying on the amnesty program to clear their tax delinquency could immediately turn around and renew their licenses. That plan fell apart. Ordinance No. 189000, amending Los Angeles Municipal Code section 104.12(c), took effect on August 26, 2026, establishing that licensees must owe less than $1,000,000 in back cannabis taxes to qualify for renewal. But the companion tax amnesty program — intended to help those same delinquent operators reach good standing — was delayed until at least spring 2027. That left a significant number of licensees subject to tighter renewal rules but without access to the amnesty tool they had been counting on to comply. Padilla's motion argues it would be unfair to deny renewals under these circumstances, given the city's own delay in implementing the amnesty side of the bargain. The motion directs DCR to renew licenses for calendar year 2027 for any licensee who would have been eligible for the tax amnesty program, provided they submit timely and complete applications and pay all required renewal fees — regardless of their current tax delinquency status. This is a targeted, time-limited relief measure tied specifically to the 2027 renewal cycle, not a permanent change to licensing standards. The related Council Files 25-1126 and 25-0600-S125 contain the underlying ordinance and amnesty program that form the backdrop for this motion. The motion was referred to the Public Works Committee on September 15, 2026, and has seen no further action since. It remains pending in committee and is set to expire in September 2028 if the full Council does not act.

Activity (1)

  • 2026-09-15 Motion referred to Public Works Committee.

Documents (1)

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