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Administration proposes shifting illicit cannabis enforcement costs to cannabis tax fund; LAO, lawmakers and industry urge coordinated tax and enforcement plan
Summary
The Department of Cannabis Control (DCC) asked the Assembly subcommittee to shift certain illicit‑market enforcement costs from the Cannabis Control Fund to the Cannabis Tax Fund to stabilize funding for enforcement without raising license fees; the Legislative Analyst's Office and others said the move should be evaluated together with a pending
The Department of Cannabis Control (DCC) presented three main May‑revision proposals to the Assembly Budget Subcommittee 5: (1) shift illicit‑market enforcement funding from the Cannabis Control Fund to the Cannabis Tax Fund, (2) grant DCC authority to seal premises where illicit cannabis activity is occurring, and (3) refine eligibility and prioritization for Board of State and Community Corrections (BSCC) award grants that reimburse local enforcement.
DCC officials argued the proposed funding shift would stabilize enforcement funding and reduce fee pressure on licensees, while local and state law‑enforcement partners and unions voiced support for stronger, better‑funded illicit‑market enforcement. John…
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