LA Mayoral Frontrunner Nithya Raman Unveils Fix for 'Broken' Cannabis Market

Raman Targets Enforcement and Licensing Gaps

Raman's platform centers on closing the enforcement gap between licensed and unlicensed operators that's plagued Los Angeles since Proposition M passed in 2017. The city licenses over 400 cannabis retailers. That's more than any other municipality in the country. But unlicensed storefronts and delivery services still outnumber legal operators by an estimated 3-to-1 ratio according to industry estimates.

The proposal marks the first time a leading mayoral candidate has made cannabis market reform a centerpiece of a campaign platform. Raman represents Council District 4, which includes parts of Hollywood and Silver Lake.

Platform Calls for Dedicated Enforcement Budget

Her plan would allocate $15 million annually from the city's cannabis tax revenue to fund a dedicated enforcement unit within the Los Angeles Police Department and Department of Cannabis Regulation. Los Angeles collected $89.4 million in cannabis tax revenue in fiscal year 2025-2026, but currently dedicates less than 2% of that total to enforcement against unlicensed operators.

The enforcement unit would target storefronts operating without city licenses and unlicensed delivery services advertising on platforms like Weedmaps and Instagram. It also calls for coordination with the California Department of Cannabis Control on shared enforcement actions.

Streamlined Social Equity Licensing Process

Raman's platform includes reforms to the city's social equity program, which has issued fewer than 100 licenses since launching in 2018 despite receiving over 600 applications. The cleanest read on the delays: a verification process that requires applicants to prove residency in disproportionately impacted areas during specific time windows, combined with a capital-access bottleneck that leaves equity applicants unable to secure real estate or financing.

Her proposed fixes include:

• Expanding the definition of eligible applicants to include family members of those with prior cannabis convictions
• Creating a city-backed loan fund capitalized at $25 million for equity licensees
• Reducing application processing times from an average of 18 months to 90 days
• Allowing equity applicants to begin buildout before final license approval

Tax Structure Overhaul Proposed

The platform calls for reducing the city's gross receipts tax on cannabis from 10% to 5% for the first three years of operation for new licensees. Los Angeles currently imposes a 10% tax on gross receipts for retailers and a 6% tax for cultivation and manufacturing, among the highest municipal cannabis tax rates in California.

Licensed operators have argued the tax burden makes it impossible to compete with unlicensed sellers who pay no taxes, particularly when combined with state excise and cultivation taxes totaling 15%. Raman's proposal would offset the revenue loss by increasing enforcement-driven seizures and fines from unlicensed operators.

Real Estate and Zoning Reforms Included

Raman's plan would expand the areas where cannabis retailers can operate by removing buffer-zone restrictions that currently prohibit dispensaries within 700 feet of schools, parks, and libraries. The 700-foot rule is stricter than the state's 600-foot requirement. It's rendered large swaths of the city off-limits to cannabis retail.

Her proposal would replace fixed buffer zones with a discretionary review process that allows the Department of City Planning to evaluate applications on a case-by-case basis. It would also permit cannabis retail in commercial zones currently restricted to medical-only licenses.

What Operators and Advocates Are Watching

The proposal faces implementation hurdles even if Raman wins the mayoral race in November 2026. Any changes to the city's cannabis tax structure require approval from the City Council, where Raman would need eight votes out of fifteen to pass an ordinance. Zoning changes would require a similar supermajority.

For full background on this story, see the CannIntel topic hub on the Los Angeles cannabis market. The next signal: whether other candidates in the mayoral race release competing cannabis platforms before the October 15 candidate forum hosted by the United Cannabis Business Association.