L.A. Measure – Supporters and opponents are clashing over Los Angeles’ Measure CB, which would tie city funding to cannabis tax revenue.
Los Angeles’ latest cannabis proposal is raising alarms by asking voters to weigh whether the city should tax operations it considers illegal.
Misryoum reports that a local nonprofit and cannabis business owners have organized to oppose Measure CB. arguing it could blur the line between regulated and unlicensed markets.. The group says the measure would legitimize an industry that Los Angeles officials have struggled to identify and shut down. while also connecting city finances to tax revenue from businesses operating outside the legal system.
At the heart of the dispute is a practical concern: if the city taxes activities it cannot effectively verify or collect from, the policy could be less about enforcement and more about legitimizing conduct the city is already trying to stop.
Misryoum says the nonprofit, Social Equity LA, sent letters to Mayor Karen Bass outlining its objections.. In its view. Measure CB also threatens to undercut California’s Proposition 64. a state framework that requires cannabis businesses to be properly licensed.. The group contends that any policy direction that makes it easier for unlicensed operators to benefit financially could weaken incentives for compliance across the legal industry.
Opponents also argue that the city’s ability to ensure payment is uncertain.. Misryoum notes the group’s concern that there is no clear way to compel illegal operators to meet tax obligations. particularly when the city’s efforts to track and close illicit businesses have faced challenges.. Even if some payments were made. the nonprofit warns that unregulated sellers could continue competing with licensed businesses by offering products outside safety and inspection requirements.
This matters because cannabis markets depend on public trust, consumer safety, and consistent enforcement. When enforcement gaps persist, policy choices that reward illegal operators can reshape incentives in ways that are hard to reverse.
The nonprofit’s broader argument is that the city should focus on lowering barriers for legitimate businesses rather than extending tax pressure in a way that may not reach the people the city is targeting.. In this context. Measure CB is being framed not simply as a revenue proposal. but as a test of how Los Angeles handles the tension between regulation. enforcement. and market competition.
At stake is whether Measure CB will be viewed as a step toward accountability or a move that could accidentally reward the very conduct the city is trying to eliminate.