Officials in Antioch, California, say some marijuana businesses have reported making no social-equity contributions to their designated nonprofit partners, while acknowledging that the city has never conducted a true audit of operators’ gross receipts.
The findings were detailed in reports presented Tuesday to Antioch’s Cannabis Standing Committee, including an evaluation from the City Attorney’s Office examining operating agreements and compliance.
Under Antioch’s system, marijuana businesses make payments to the city based on self-reported gross receipts or cultivation activity. Retail operators submit reports and payments monthly, while cultivation businesses report quarterly.
Although operating agreements give the city authority to inspect financial records and conduct annual audits at an operator’s expense, city staff said those powers have not been used.
“The City has not exercised those provisions to date,” the report states.
The City Attorney’s Office separately said it does not have a complete operator-by-operator picture of compliance with social-equity contribution requirements and that, to its knowledge, “a true audit of gross receipts records has not been conducted.”
Among the operators that have been reviewed, officials said some are fully complying with their social-equity obligations, others have made partial contributions and some have reported making no contributions to their designated nonprofit partners.
Individual payment amounts and gross receipts figures were not released because the city considers them confidential.
Antioch’s operating agreements require marijuana operators to maintain social-equity programs throughout the life of their agreements, including written equity plans outlining goals, responsibilities, timelines and measurable outcomes. Operators are also required to provide annual reports to the city manager.
The agreements include enforcement mechanisms if an operator is found in default, including a 45-day notice and cure period. If a violation is not resolved, the city manager can order the suspension of operations under the agreement and recover costs.
City staff concluded that an audit of gross receipts is the practical next step for determining precise compliance.
Since fiscal year 2019-20, Antioch has received $11,702,329 in marijuana-related revenue, including approximately $1.97 million during fiscal year 2025-26. Those city revenues are separate from the contributions operators make directly to nonprofit social-equity partners.
