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The most important stories for you to know today
  • Adobe's AI scandalized a 4th grade project
    A close up of signage that reads "Adobe" with a logo on a red brick building.
    A sign on the exterior of an Adobe office in San Francisco on Dec. 10, 2025.

    Topline:

    Adobe’s artificial intelligence generated sexualized images in response to prompts for a 4th grade book project at Delevan Drive Elementary School in Eagle Rock. The incident coincided with the release of new state guidelines to prevent harmful AI in schools.

    About the incident: When Jody Hughes’ daughter asked Adobe Express for Education, graphic design software provided by her teacher, to generate an image of “long stockings a red headed girl with braids sticking straight out,” it produced nothing resembling the Swedish children’s book character she had accurately described. Instead, using recently-added artificial intelligence, it generated sexualized imagery of women in lingerie and bikinis. Hughes quickly contacted other parents, who said they were able to reproduce similar results on their own school-issued Chromebook computers.

    Why it matters: The incident raised questions not only about the L.A. school district’s use of a particular AI product but also about guidelines state administrators provide to schools throughout California on how to safely adopt the technology. A few weeks after the incident, the state Department of Education published a new edition of the guidelines, which it had been working on for several months with help from a group of 50 teachers, administrators, and experts.

    Read on... for more about the incident.

    This story was originally published by CalMatters. Sign up for their newsletters.

    In December, fourth graders in a class at Delevan Drive Elementary School in Los Angeles were given a homework assignment: Write a book report about Pippi Longstocking, then draw or use artificial intelligence to make a book cover.

    When Jody Hughes’ daughter asked Adobe Express for Education, graphic design software provided by her teacher, to generate an image of “long stockings a red headed girl with braids sticking straight out,” it produced nothing resembling the Swedish children’s book character she had accurately described. Instead, using recently-added artificial intelligence, it generated sexualized imagery of women in lingerie and bikinis. Hughes quickly contacted other parents, who said they were able to reproduce similar results on their own school-issued Chromebook computers. Days later, the parent group Schools Beyond Screens told the L.A. school board they were opposed to further use of the Adobe software.

    The incident raised questions not only about the L.A. school district’s use of a particular AI product but also about guidelines state administrators provide to schools throughout California on how to safely adopt the technology. A few weeks after the incident, the state Department of Education published a new edition of the guidelines, which it had been working on for several months with help from a group of 50 teachers, administrators, and experts. The revision came in response to instructions from the Legislature, which passed two laws in 2024 telling the department, essentially, to get a handle on AI’s rapid spread among students, teachers and administrators.

    Critics wonder if the guidelines would have helped avoid what parents referred to as Pippigate; the controversy, they say, provides evidence that districts, schools, and parents, who often lack the time or resources to ensure that software tools don’t produce harmful output, need more support from the state. The guidelines, they add, are also too vague in places and don’t do enough to define guardrails for how teachers use AI in the classroom.

    The issues with the guidelines call into question whether the department can effectively respond to instructions from elected officials on how to safeguard a technology that, according to the guidelines themselves, can leave children isolated and with narrowed perspectives.

    With AI rapidly becoming more prevalent in society, effectively managing the technology has become an urgent issue. Though OpenAI’s ChatGPT popularized generative AI just three years ago, polls show that a majority of teachers and students nationwide now use the technology in some capacity.

    While AI can help save teachers time, personalize learning, and support students who do not speak English or who have disabilities, it can also inaccurately grade their papers and generate images that perpetuate or intensify stereotypes or sexualized imagery of women, particularly women of color. The majority of California K-12 students are people of color. Since the rapid expansion of generative AI adoption started, teachers who spoke with CalMatters have felt both a need to prepare their students for a future where AI is ubiquitous and a fear that AI tools can enable cheating on tests and lead to deficiencies in reasoning, logic, and critical thinking.

    “Educators have a narrow window to set norms before they harden,” said LaShawn Chatmon, CEO of the National Equity Project, an Oakland group that helps teachers produce more equitable outcomes. “Local education agencies that take advantage of this opportunity to co-design learning and policy with students and families can help shift who gets to decide AI’s role in our learning and lives.”

    A district spokesperson told CalMatters that images generated by the AI model don’t align with district standards and “we are collaborating with Adobe to address the issue.” Adobe VP of Education Charlie Miller said the company rolled out changes to address the issue within 24 hours of hearing about the incident. Miller did not respond to questions about how the tool was vetted before deployment.

    As a result of what his child experienced, Hughes thinks students shouldn’t be told to use text-to-image generators for homework assignments. But he sees no attempt to place such limits on use of the technology in the Department of Education guidance.

    “These tech companies are making things marketed to kids that are not fully tested,” he said. “I don't know where to draw the line but elementary school is too young because it can get real nasty real fast as we’ve seen with the Grok stuff,” he added, referring to recent abuse of the Grok AI system to nonconsensually remove clothing in images of women and children.

    Issues with AI guidance

    The guidance supplies a list of unacceptable uses of AI by students, such as plagiarism, and urges educators to integrate real-world scenarios and case studies into discussions to help students apply ethical principles to practical situations. It also says students should be taught to “think critically and creatively” about AI tools’ “benefits and challenges.”

    Julie Flapan, director of the Computer Science Equity Project at UCLA’s Center X, said that the Pippi Longstocking incident called to mind a 2024 study that found young Black and Latino people are more likely to use generative AI than young white people. That data, in tandem with the historical disparity in access to computer science education, means, she said, that some parents and students will need help to think critically about AI.

    These tech companies are making things marketed to kids that are not fully tested.
    — Jody Hughes, parent of student at Delevan Drive Elementary School, Los Angeles

    “We often think about technological advances as ways to level the playing field,” she said. “But the reality is we know that they exacerbate inequalities.”

    Flapan said it makes sense that the guidelines urge critical thinking and vetting of AI tools before use and encourage education leaders to engage communities in decisionmaking. But, she added, the guidance doesn’t detail how to do that.

    Charles Logan, a former teacher now at a responsible tech laboratory at Northwestern University, said that the guidelines fall short by not offering teachers and parents clear guidance on how they can opt out of using the technology. A Brookings Institution study released in January, based on interviews with students, teachers and administrators in 50 countries, concluded that the risks of AI in classrooms currently outweigh the benefits and can “undermine children's foundational development."

    Mark Johnson, head of government affairs at Code.org, praised the guidelines, but said the state should offer more AI education support to educators and make proficiency in AI and computer science requirements for graduation. A recent report by Johnson found four states adopted such graduation requirements after releasing AI guidance.

    Katherine Goyette, who served as computer science coordinator for the Department of Education until January, when asked about the Longstocking incident, pointed to parts of the guidance emphasizing the importance of engaging families, communities and school board members when evaluating AI tools. She also said critical thinking is important in preventing such outcomes, pointing to guidance that pushes administrators to consider potential harms before use.

    Additional direction is on the way for how to put the recently released guidance into practice: the department’s AI working group will introduce specific policy recommendations based on the guidance by July.

    The pressure of the AI inevitability narrative 

    The latest version of California Department of Education AI guidelines come as local educational agencies move away from blanket AI bans considered after the 2022 release of OpenAI’s ChatGPT. Instead, districts are moving toward deciding when and how students and teachers can use the technology. Those local decisions will be critical to how the technology is actually used in schools, since the state cannot require school districts adopt its guidance.

    Even the largest school districts in California can encounter serious issues when deploying AI. In June 2024, Los Angeles Unified’s superintendent promised the best AI tutor in the world but had to pull it from use weeks later. A week later, news emerged that a majority of members on the San Diego Unified School District board, the second-largest district in the state, signed a contract for curriculum that they didn’t know included an AI grading tool.

    The move toward state and district AI guidance, rather than bans, reflects a broader sense of inevitability in the state around adoption of the technology. In his October veto of a bill that would have prevented use of some chatbots by minors, Gov. Gavin Newsom said AI is already shaping the world and that “We cannot prepare our youth for a future where AI is ubiquitous by preventing their use of these tools altogether.”

    Logan, who recently advised San Diego parents about how to resist and refuse AI use in classrooms, pushes back against this idea. He says the California Department of Education guidance should address situations in which parents might want to avoid having their children use AI at all.

    “It’s surprising that the guidance wants to make proficient AI users of kindergartners and there wasn’t space to say no or opt out,” he said in a phone call.

    The statewide AI guidance joins a series of efforts to protect kids from AI, including bills now before the Legislature that seeks to place a moratorium on toys with companion chatbots and protect student privacy in the age of AI. Common Sense Media and OpenAI are working on getting a kids online safety initiative on the ballot for the election in November.

    This article was originally published on CalMatters and was republished under the Creative Commons Attribution-NonCommercial-NoDerivatives license.

  • Law enforcement served a search warrant
    Three people in black uniforms and tactical vests marked "POLICE" stand talking at an open blue metal gate outside a large white building on a sunny day.
    Agents with the Department of Toxic Substances Control Criminal Investigations Bureau serve a search warrant at Lineage in Boyle Heights on Tuesday, Oct. 6, 2026.

    Topline:

    A criminal investigation was underway Tuesday at the burned Lineage Logistics warehouse in Boyle Heights. Agents with California’s Department of Toxic Substances Control Criminal Investigations Bureau, a law-enforcement unit that investigates potential violations of the state’s hazardous-waste laws, served a search warrant at the site.

    The backstory: Last week, Eastside Padres held a press conference outside the warehouse, calling on the Los Angeles County District Attorney’s Office to open a criminal investigation of the warehouse fire after the Los Angeles Fire Department reported that the cause of the fire could not be determined.

    What Lineage has said: In a statement, Lineage — which operates cold-storage facilities around the world — said that it works collaboratively with various regulatory agencies. “To be clear, we do not store hazardous chemicals or products in this facility. We store food. Further, the facility’s ammonia refrigeration system was safely pumped out shortly after the fire began and before the fire reached the refrigeration system.

    A criminal investigation is underway Tuesday at the burned Lineage Logistics warehouse in Boyle Heights.

    Agents with California’s Department of Toxic Substances Control Criminal Investigations Bureau, a law-enforcement unit that investigates potential violations of the state’s hazardous-waste laws, are serving a search warrant at the site. Surveillance video showed law enforcement arriving around 7:30 a.m., and some remained on scene as of midday Tuesday.

    An agent with the department confirmed that the Office of Criminal Investigations is the lead agency but declined to comment further. Several investigators with badges from the LA County District Attorney’s office were also present. The office later confirmed it assisted DTSC in serving the search warrant and is supporting the department’s ongoing investigation.

    In a statement, Lineage — which operates cold-storage facilities around the world — said that it works collaboratively with various regulatory agencies.

    “To be clear, we do not store hazardous chemicals or products in this facility. We store food. Further, the facility’s ammonia refrigeration system was safely pumped out shortly after the fire began and before the fire reached the refrigeration system. The ammonia was subsequently removed from the site. The Los Angeles Fire Department reported no ammonia was detected during its response, and subsequent environmental monitoring has consistently shown results within normal levels for the neighborhood and no ammonia concentrations above health-based action levels. We have shared relevant testing and monitoring information on our website and with regulatory agencies and will continue to do so,” the statement said.

    In the weeks after the fire, community testing as well as data from Lineage and the South Coast Air Quality Management District showed elevated levels of ammonia near the warehouse. Community members found the results alarming, though Lineage and regulators stressed the levels didn’t meet the threshold to take action to protect public health.

    Last week, Eastside Padres held a press conference outside the warehouse,calling on the Los Angeles County District Attorney’s Office to open a criminal investigation of the warehouse fire after the Los Angeles Fire Department reported that the cause of the fire could not be determined.

    A person who works at the facility said the operation started earlier Tuesday morning. Employees initially believed Immigration and Customs Enforcement agents were involved, but soon found they were not.

    Anna Rivas works at Ciclon Pallets across the street from the Lineage parking lot where agents served the search warrant. A man driving a truck and a large trailer had to expertly back into her garage to pick up a load of pallets, dodging the law enforcement vehicles parked nearby.

    The business’s surveillance cameras captured a police vehicle with lights and siren pulling up to the facility at about 7:30 a.m., with about 20 unmarked vehicles approaching soon after and entering the parking lot or stopping to block the entrance.

    Rivas said the pallet company had to shut down for about a month and a half around the time of the fire, citing respiratory problems for workers and a loss of business.

    “We thought we finally had our space back to do our work,” Rivas said. “But no, here we go again.”

    She said the police did not question her or her colleagues, and she added she hopes the neighborhood gets the justice it deserves after months of disruption related to the fire.

    In a statement, Councilmember Ysabel Jurado said she welcomed the investigation “as a positive step toward the transparency and answers Boyle Heights residents deserve.”

    “This community has lived with the consequences of the Lineage warehouse fire for months. Residents deserve to know what happened, what risks remain, and who must be held accountable.”

    “Investigators must be able to follow the evidence wherever it leads, and their findings should help give residents the information they need about their health, safety, and the future of this site. I will continue pushing for those answers, a safe and complete cleanup, and accountability for any violations uncovered. Boyle Heights should not be left to shoulder the consequences of this disaster.”

    The office of Mayor Karen Bass also acknowledged the investigation, stating:

    “The residents of Boyle Heights and East L.A. deserve environmental justice and corporate accountability. Mayor Bass has been working with many agencies to protect this community. In her emergency executive order, Mayor Bass called for the California Department of Toxic Substances Control (DTSC) to investigate and pursue enforcement action at the Lineage warehouse.”

    The fire at the cold storage warehouse broke out on June 17 and burned for eight days. The fire and cleanup of millions of pounds of rotting food caused a flood of issues for residents living in Boyle Heights, East LA and surrounding communities, including an infestation of flies and pests, nausea and headaches, higher utility bills and other health concerns.

    The Los Angeles Fire Department could not determine the cause of the fire but said solar panels could not be ruled out as an ignition and fuel source.

    Boyle Heights Beat reporter Laura Anaya-Morga contributed to this report.

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  • Actor starred in 'North by Northwest;' was 102
    Black-and-white photo of two women and a man in formal evening wear, smiling and standing close together in front of a pebble-mosaic wall, all looking off to the left.
    Attending the annual Motion Picture Costumers ball in Los Angeles, Oct. 25, 1957, from left is Olivia de Havilland, Eva Marie Saint and Jeffrey Hayden

    Topline:

    Eva Marie Saint, the pale, willowy actor who won an Academy Award for her first movie, “On the Waterfront,” and starred opposite Cary Grant in the Alfred Hitchcock thriller “North by Northwest,” has died. She was 102. Saint, whose acting work lasted well into her 90s, died at her home in Los Angeles on Tuesday, confirmed family representative Jeff Sanderson.

    Her rise to fame: Saint had one of the most spectacular debuts in Hollywood history, as the love interest of Marlon Brando’s tormented Terry Malloy in “On the Waterfront,” and her first trip to the Academy Awards was memorable too. Pregnant with her first child, Saint accepted her Oscar from Frank Sinatra and smilingly murmured a unique winner’s speech: “I think I may have the baby right here.” (Her son, Darrell, was born two days later.)

    Later years: She turned more to television in the 1970s and enjoyed renewed popularity in the 1980s as the mother of Cybill Shepherd in the hit sitcom “Moonlighting” and as Tom Hanks’ mother in the film comedy “Nothing in Common.”

    Eva Marie Saint, the pale, willowy actor who won an Academy Award for her first movie, “On the Waterfront,” and starred opposite Cary Grant in the Alfred Hitchcock thriller “North by Northwest,” has died. She was 102.

    Saint, whose acting work lasted well into her 90s, died at her home in Los Angeles on Tuesday, confirmed family representative Jeff Sanderson.

    Saint had one of the most spectacular debuts in Hollywood history, as the love interest of Marlon Brando’s tormented Terry Malloy in “On the Waterfront,” and her first trip to the Academy Awards was memorable too. Pregnant with her first child, Saint accepted her Oscar from Frank Sinatra and smilingly murmured a unique winner’s speech: “I think I may have the baby right here.” (Her son, Darrell, was born two days later.)

    The award for the 1954 classic made her an instant star, but she soon astonished Hollywood with a firm independence that would mark her career. She refused offers of studio contracts and declined chances to follow up on her great success, explaining that she was taking time off to become acquainted with her new son. (A daughter, Laurette, was born in 1958.)

    A curated career

    In her first decade in Hollywood, Saint appeared in a mere seven films. She declined such top-level productions as “The Man in the Gray Flannel Suit” with Gregory Peck, “Summer and Smoke” with Laurence Harvey and “The Rainmaker” with Burt Lancaster. She credited her husband, TV and stage director Jeffrey Hayden, with persuading her to star in Hitchcock’s “North by Northwest,” the classic 1959 thriller in which Saint plays a spy who seduces Grant, but ends up falling for him.

    “I vividly remember him saying, ‘Honey, I think you should find a quiet spot. I’ll take care of the children and I want you to really think about this and reread this script,’” she told Vanity Fair in 2014. “He was so right. And that’s what husbands are for.”

    Listen 16:57
    Listen: Eva Marie Saint talks Hitchcock, Brando and being a femme fatale
    In 2014, she spoke to LAist's AirTalk show about her iconic roles in “North by Northwest” and “On the Waterfront.”

    Instead of being put off by her selectivity, studios continued offering her starring roles in such films as “Exodus” (with Newman), “Raintree County” (Elizabeth Taylor, Montgomery Clift) and “All Fall Down,” with Warren Beatty.

    She turned more to television in the 1970s and enjoyed renewed popularity in the 1980s as the mother of Cybill Shepherd in the hit sitcom “Moonlighting” and as Tom Hanks’ mother in the film comedy “Nothing in Common.” She won an Emmy for the 1990 miniseries “People Like Us,” and had roles in such 21st century movies as “Because of Winn-Dixie,” “Superman Returns” and “Winter’s Tale,” adapted from Mark Helprin’s novel of the same name. In 2021, she played Marisa Tomei’s aunt in the brief audio play “The Bus Ride,” part of “The Pack Podcast.”

    Saint was married to Hayden for 55 years, until his death in 2016.

    That was her real name

    When Saint emerged in the public consciousness, many believed her theatrical-sounding name must have been invented. She was born with it on July 4, 1924, in Newark, New Jersey. The family moved to Delmar, a small town near Albany, New York, where her father was a Goodrich Rubber Co. manager. Eva’s goal was to become a third-grade teacher like her mother, but at Bowling Green State University in Ohio she tried out for a play and won the leading role.

    After graduation she lived with her parents in Flushing, Long Island, and began hunting for acting jobs in Manhattan. After a fruitless year, she landed a two-line role as a telephone operator on a radio drama and soon was working steadily on soap operas and nighttime dramas, appearing for two years as Claudia on “One Man’s Family.” Network television was booming in the early 1950s, and her looks and dramatic sense made her a favorite with casting people and producers.

    She credited Lee Strasberg with helping her overcome shyness

    A critical turn in Saint’s career came when she auditioned before Elia Kazan and was accepted into the Actors Studio, which shaped a generation of method-actor stars. She credited acting coach Lee Strasberg with helping her overcome her shyness.

    “Lee Strasberg, when he got to know me a little bit, gave me a scene to do where I had to cry in front of my peers,” she told The Santa Barbara Independent in 2009. “I worried about it, I worked on it, I tried to use what I was learning at the studio. I finally did the scene, and I cried, and my peers were crying with me. It was just an incredible moment for me.”

    Saint was rejected for the single female role in the play “Mister Roberts,” but was hired to understudy the actor chosen, Jocelyn Brando, Marlon’s sister. In six frustrating months Saint never got to substitute for Brando. She finally made it to Broadway in “A Trip to Bountiful,” which she had played on television.

    Kazan invited her to try out for the female lead in “On the Waterfront” by improvising a scene with Brando. She was told to try to stop a young man from entering her apartment. She told the Los Angeles Times in 2001: “All I know is that Marlon got in the door and turned on the music. We started dancing. He flicked my skirt. Kazan saw the sparks fly, and that’s how I got the part.”

    Thomas, a former Associated Press Hollywood correspondent who died in 2014, was the primary writer of this obituary.

  • State agency identifies “high” risk of insolvency
    A distant view of a half circle of people in suits talking to a crowd.
    The Los Angeles Unified School Board is tasked with securing the long-term fiscal health of the nation's second-largest school district.

    Topline:

    California’s school finance watchdog agency has found the Los Angeles Unified School District is at high risk of financial insolvency. The Financial Crisis and Management Assistance Team presented its analysis at Tuesday’s school board meeting.

    The backstory: A July assessment from the Los Angeles County Office of Education found LAUSD was at risk of becoming insolvent, which triggered FCMAT’s evaluation. “FCMAT’s role is not to determine which programs the district should preserve, which reductions it should make or what agreements it should reach with the labor [unions],” Jennifer Noga, an intervention specialist with the agency, told the board. “That is 100% a local decision. Our goal is to help identify the fiscal risk and help the district understand what needs to be addressed to restore fiscal stability.”

    Key findings: The analysis found LAUSD's deficit spending, declining enrollment and increasing cost of employee salaries and special education put the district at risk of exhausting its reserves by the end of next school year.

    Union pushback: United Teachers Los Angeles, the union that represents LAUSD educators, said in a memo to the board and in public comments that FCMAT’s analysis penalized the district for paying teachers more, and overstated financial risk. “There are different ways to tell a story with numbers and statistics and data, and we just think that FCMAT is presenting the most austere version of that and we have to fight back against that,” said UTLA Vice President Julie Van Winkle. “There is declining enrollment in the district, and who is going to want to put their kids in schools if we keep cutting programs because of austerity?"

    What's next: The district has a plan to cut spending, which includes eliminating thousands of jobs and funding for high-needs schools. The district must also bargain with employee unions before implementing furlough days planned for the 2027-28 school year.

    California’s school finance watchdog agency has found the Los Angeles Unified School District is at high risk of financial insolvency.

    The Financial Crisis and Management Assistance Team presented its analysis at Tuesday’s school board meeting.

    “FCMAT’s role is not to determine which programs the district should preserve, which reductions it should make or what agreements it should reach with the labor [unions],” Jennifer Noga, an intervention specialist with the agency, told the board. “That is 100% a local decision. Our goal is to help identify the fiscal risk and help the district understand what needs to be addressed to restore fiscal stability.”

    How did the state make its determination?

    The agency’s analysis of LAUSD is based on a series of questions the agency has identified as risk factors for insolvency.

    The analysis found that LAUSD's deficit spending, declining enrollment and increasing costs of employee salaries and special education put the district at risk of exhausting its reserves by the end of next school year.

    The analysis found LAUSD is at a “moderate” risk of insolvency, but ultimately received a “high” rating because a previous evaluation by the Los Angeles County Office of Education automatically triggered a more severe label. (That LACOE evaluation is also what triggered the state evaluation in the first place.)

    Union pushback

    United Teachers Los Angeles, the union that represents LAUSD educators, said in a memo to the board and in public comments that FCMAT’s analysis penalized the district for paying teachers more and overstated financial risk.

    “There are different ways to tell a story with numbers and statistics and data, and we just think that FCMAT is presenting the most austere version of that and we have to fight back against that,” said Julie Van Winkle, the union's vice president. “There is declining enrollment in the district, and who is going to want to put their kids in schools if we keep cutting programs because of austerity?"

    The district has a plan to cut spending, which includes eliminating thousands of jobs and funding for high-needs schools. The district must also bargain with employee unions before implementing furlough days planned for the 2027-28 school year.

    Find Your LAUSD Board Member

    LAUSD board members can amplify concerns from parents, students and educators. Find your representative below.

    District 1 includes Mid City, parts of South L.A. (map)
    Board member: Sherlett Hendy Newbill
    Email: BoardDistrict1@lausd.net
    Call: (213) 241-6382 (central office); (323) 298-3411 (field office)

    District 2 includes Downtown, East L.A. (map)
    Board member: Rocío Rivas
    Email: rocio.rivas@lausd.net
    Call: (213) 241-6020

    District 3 includes West San Fernando Valley, North Hollywood (map)
    Board member: Scott Schmerelson
    Email: scott.schmerelson@lausd.net
    Call: (213) 241-8333

    District 4 includes West Hollywood, some beach cities (map)
    Board member: Nick Melvoin 
    Email: nick.melvoin@lausd.net
    Call: (213) 241-6387

    District 5 includes parts of Northeast and Southwest L.A. (map)
    Board Member: Karla Griego
    Email: district5@lausd.net
    Call: (213) 241-1000

    District 6 includes East San Fernando Valley (map)
    Board Member: Kelly Gonez
    Email: kelly.gonez@lausd.net
    Call: (213) 241-6388

    District 7 includes South L.A. and parts of the South Bay (map)
    Board Member: Tanya Ortiz Franklin
    Email: tanya.franklin@lausd.net
    Call: (213) 241-6385

  • LA City Council gives delinquent shops more time
    Cannabis plants grow indoors.
    Cannabis plants at the Pure Beauty growing site in Sacramento on Jan. 26, 2022.

    Topline:

    More than 100 L.A. cannabis businesses that were expected to lose their licenses at the end of the year because of unpaid taxes may be able to stay open after the City Council voted Tuesday to delay a new licensing rule.

    About the delayed rule: Cannabis businesses would only be able to renew their licenses if they owe less than $1 million in unpaid city taxes and have been delinquent on their taxes for less than four years.

    Why it was put off: The City Council voted to delay the restrictions for one year because a separate program intended to provide an exception to businesses who agreed to follow a tax payment plan could not begin on time.

    Read on . . . for more about the city’s cannabis tax amnesty program.

    More than 100 cannabis businesses in L.A. that were expected to lose their licenses at the end of the year may be able to stay open after a City Council vote Tuesday.

    A city ordinance that took effect in August would only have allowed cannabis businesses to renew their licenses if they owed less than $1 million in unpaid city taxes and had been delinquent on their taxes for less than four years.

    The limits were set to get more strict each year until 2030, when businesses would need to owe less than $100,000 in unpaid taxes.

    The City Council voted to delay the restrictions for one year because a separate program intended to provide an exception to businesses who agreed to follow a tax payment plan could not begin on time.

    There are more than 1,000 licensed cannabis businesses in the city of L.A., according to the Department of Cannabis Regulation, and 125 of those would not have been eligible to renew their licenses had Tuesday’s vote not passed.

    In October 2025, City Treasurer Diana Mangioglu reported that 500 cannabis businesses owed a total of $500 million in unpaid taxes, interest and penalties. Of those businesses, 48 owed more than $2 million.

    Owners of many cannabis retailers, manufacturers and distributors have asked local government leaders for help as they face higher taxes than most industries and strong competition from unlicensed businesses — which pay no taxes and typically sell at a lower price in the illicit market.

    Evelyn Scott gave public comment during the City Council meeting and said these challenges led her business to close.

    “Losing our license will make it even harder to reopen, generate revenue, create jobs and meet our obligations to the city,” Scott said.

    What is the tax amnesty program?

    When the city enacted licensing restrictions based on cannabis businesses’ unpaid taxes, local officials also intended to make a pathway for delinquent businesses to come back into compliance.

    The cannabis tax amnesty program allowed for some businesses that would otherwise be prevented from renewing their licenses to agree to a payment plan that could last up to five years. If the businesses kept to the agreement, they could continue to renew their licenses, would have penalties and interest on unpaid taxes forgiven and wouldn’t face criminal charges for not paying those taxes on time.

    Could the agreements help the city?

    L.A.’s Office of Finance, which is in charge of the program, estimates it could bring in $10 million in city tax revenue in the first year.

    But it wasn’t possible to start the program for 2027 licenses, according to Matthew Crawford, assistant director of the finance office.

    He told LAist in an email that the office wouldn’t be able to begin the program in time without exposing the city to “unacceptable levels of risk to both [a tax administration] system replacement project and the integrity of the amnesty program.”

    Crawford said the finance office still expects the city to receive the same amount of revenue once the program begins.

    How to reach me

    If you have a tip, you can reach me on Signal. My username is  jrynning.56.