L.A. Cannabis Industry Insiders Say Social Equity Program Has ‘Failed’
As of December 2023, only 40% of social equity businesses were operational
Los Angeles’ cannabis social equity program, one of the largest in the U.S., has “failed” to live up to its promise of boosting minority participation in the industry, several participants and activists said recently. The group was asked to respond to a city report from January that found that only 111 of 200 social equity dispensary licenses have actually been issued since permit winners were named almost four years ago.
And far less than 111 are actually serving customers, industry insiders told Green Market Report.
By the numbers
At the beginning of 2024, a total of 499 social equity business permits had been awarded to retailers, growers, manufacturers, distributors, and delivery services. That’s out of 1,506 total marijuana permits awarded in the city, including non-social equity licenses, according to the report, which was authored by the L.A. Department of Cannabis Regulation.
That tally includes:
- 111 storefront dispensaries
- 130 delivery companies
- 71 manufacturers
- 92 distributors
- 95 growers
As of December last year, only 40% of the social equity licenses – a total of 200 operators across categories – were operational, the DCR found. The analysis comes nearly six years after the city council signed off on the social equity program and licensing began.
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