Audit Says L.A. Took ‘Reasonable’ Steps To Prevent Unfairness In Cannabis Licensing

Auditors found that the department “conducted the process in good faith”

A newly released audit found that although some cannabis entrepreneurs got into Los Angeles’ application system ahead of time, the city took “reasonable and appropriate” steps to prevent them from having any unfair advantage.

An L.A. official is recommending, in light of those findings, that the Department of Cannabis Regulation press forward with processing and awarding licenses for new retailers, which had been suspended last year amid concerns about fairness.

Auditors found that the department “conducted the process in good faith and found no evidence of bias or unfairness,” City Administrative Officer Richard Llewellyn wrote in a summary of the report, concluding that the department should be directed to “commence the necessary work” to continue the licensing process.

The Department of Cannabis Regulation said it was preparing recommendations on how to process such applications, aiming to make “reasonable and practical reforms” to its procedures and “establish a more equitable path forward.”

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