California’s Cannabis Permitting Process Fails to Thwart Corruption, Auditor Finds

Local governments must take steps to prevent conflicts of interest and conduct proper background checks, state auditors said.

A worker prepares to package freshly made marijuana infused chocolate bars at Kiva Confections in Oakland, California on Jan. 16, 2018. Justin Sullivan/Getty Images

California’s permitting process for the legal cannabis industry has many holes that leave the door open for corruption, according to a state audit prompted by several allegations of wrongdoing.

State Auditor Grant Parks launched the investigation in March 2023 after the Joint Legislative Audit Committee approved a request by Assemblyman Reggie Jones-Sawyer, a Los Angeles Democrat. Six locations were reviewed—the cities of Fresno, Sacramento, San Diego, and South Lake Tahoe, and the counties of Monterey and Santa Barbara.