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CDTFA seeks new funding to police illicit cannabis and flavored tobacco sales
Summary
CDTFA asked the Assembly Budget Subcommittee for targeted funding to support enforcement of cannabis, intoxicating-hemp and flavored-tobacco rules, citing continuing illicit market activity and recent laws (AB195, AB8, AB3218, SB1230) that expand seizure and penalty authority.
The California Department of Tax and Fee Administration told the Assembly Budget Subcommittee it needs additional resources to enforce new cannabis and flavored-tobacco laws and to shrink a persistent illicit market.
"We have steadily improved our efficiency," said Trista Gonzalez, director of CDTFA, but the agency described ongoing challenges bringing illicit sellers into the legal market while ensuring collectors remit the correct taxes. Jason Mallett, CDTFA chief financial officer, said the department administered 42 tax and fee programs that generated about $98,000,000,000 in FY24–25 and that enforcement protects roughly $1 billion in cannabis revenues and broader…
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