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Administration proposes shifting cannabis illicit‑market enforcement to tax fund; LAO and public raise legal and budget trade‑offs
Summary
The Department of Cannabis Control proposed shifting some illicit‑market enforcement costs from the Cannabis Control Fund to the Cannabis Tax Fund, requested authority to seal premises used for illegal cannabis operations, and sought refinements to grant eligibility for local enforcement assistance.
The Department of Cannabis Control told Assembly Budget Subcommittee 5 the May Revision includes a multi-part plan to sustain enforcement against the illicit cannabis market while limiting fee pressure on licensed businesses.
Deputy Director Christina Dempsey said the administration proposed shifting certain enforcement costs from the Cannabis Control Fund to the Cannabis Tax Fund so that enforcement activities can continue without increasing license fees. The department also sought trailer‑bill authority to authorize DCC to seal locations where illicit activity is occurring to prevent rapid reopening of illegal shops, and it proposed refinements to eligibility and prioritization for Proposition 64…
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