In 2018, Rabin Woods was awarded Social Equity License 43, one of the first 100 retail cannabis licenses distributed by Los Angeles’ anticipated Social Equity Program. The program aimed to address decades of racially biased drug enforcement by prioritizing entrepreneurs, like Woods, who had been disproportionately impacted by the war on drugs.

“It took me five years to get this store open,” Woods said.

Woods was arrested in 1983 for a marijuana offense. Since, he’s opened a non-profit that supports Angelenos in need, he’s a mental health therapist, church deacon and he’s the owner and founder of Cannabis House as of January 2024.

Individuals who are low-income and have faced a prior California cannabis-related arrest or conviction qualified for a social equity license. However, what should have been a streamlined path to business ownership for Woods became a years-long ordeal involving financial strain and predatory investors.

“I'm really fortunate that it is someone like Rabin who owns this dispensary,” said Maddie Kelley, a neuroscience major and President of Cannabis at USC. “Because it's someone who cares about how this plant is actually affecting people.”

Originally from Iowa, Woods’ vision extends beyond simply selling cannabis; he wants to re-educate the public on the plant, undoing decades of misinformation. Woods is particularly passionate about fostering change at USC, building relationships with students and leaders like Kelley.

“I thought I could create a culture here,” Woods, now 62, said as he sat inside of his dispensary that hugs the University of Southern California’s campus.

Controversy From the Start

Despite the city's promise to prioritize equity, the rollout was plagued by technical glitches and allegations of unfairness. Woods, awarded license number 43, was among those caught in the chaotic process. Some applicants claimed they were disadvantaged due to system errors, while others questioned the transparency of the selection process.

Following public outcry, the city of Los Angeles conducted an audit of the application process, confirming that errors and inconsistencies had occurred. The controversy surrounding these initial licenses only intensified the spotlight on the importance of entrepreneurs like Woods, who saw their dreams delayed by years due to bureaucratic mismanagement.

Rabin Woods speaks to city officials on September 3, 2019, the controversial day equity licenses were awarded in Los Angeles. Video coutresy of Rabin Woods.

Woods’ experience was emblematic of broader systemic issues, as outlined in a Guardian investigation, that had revealed instead of delivering the promised reparations, Los Angeles’ cannabis equity program was financially devastating many Black entrepreneurs. Delays, high fees, and a lack of access to capital left people like Woods struggling to open their businesses, despite holding a license to sell.

Like many others in Los Angeles’ Social Equity Program, Woods was plagued by obstacles to open. A 2022 report commissioned by the Los Angeles County Office of Cannabis Management highlighted financial barriers as a significant challenge for equity applicants. The report emphasized that high costs and lack of access to capital have slowed progress for entrepreneurs like Woods, delaying license approvals and business operations.

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A "Now Open" banner hangs in front of Cannabis House dispensary, next door to Mekagreen Pharmacy. October 22, 2024. (Isaac Vargas/Annenberg Media)

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Inside of Cannabis House dispensary featuring an array of products. October 22, 2024. (Isaac Vargas/Annenberg Media)

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A Cannabis House dispensary sign hangs next to a mini fridge full of cannabis-infused seltzers and energy drinks. October 22, 2024. (Isaac Vargas/Annenberg Media)

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A "Now Open" dispensary sign is placed on the corner of Vermont Avenue and W. 29th Street. October 22, 2024. (Isaac Vargas/Annenberg Media)

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Furthermore, the report criticized the lack of unified support for social equity applicants, recommending reduced property requirements and expanded technical assistance to alleviate the burden on those disproportionately impacted by the war on drugs. Had these supports been in place, Woods’ journey to open his dispensary may have been shorter.

At the state level, while California has committed over $100 million to local equity programs, many equity entrepreneurs still face significant obstacles in accessing these resources. Since 2016, the state has issued over 8,500 licenses.

In Los Angeles, as of December 2020, non-equity licensees were almost six times the number of equity licensees. The jurisdiction received 544 equity license applications to 334 non-equity applications.

Despite multiple communications and week’s notice, the Department of Cannabis Control was unavailable for an interview in time for this article’s publication.

The dispensary is frequented by USC students, athletes and professors. Since meeting in the Spring, Kelley and Woods are finding ways to combine their shared passions for cannabis advocacy.

“We’re working on [his] podcast and he'll have people come into the shop and ask them questions that they may or may not know about cannabis,” Kelley said. “A lot of what our collaboration has looked like has been a sharing of information.”

Woods hopes that his dispensary, sitting on the border of University Park and West Adams neighborhoods, becomes a hub for conversations about the history of cannabis. This is a dream that he knows can only happen with the help of people like Kelley.

“The opportunity to change this world is solely on what you, [the next generation] do,” Woods said.