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New York Tackles Illicit Cannabis; California Next
Since California legalized recreational cannabis in 2016, licensed operators have faced stiff competition from the illicit market. Based on current estimates, only about 40% of California consumers purchase cannabis from legal sources.
Since California legalized recreational cannabis in 2016, licensed operators have faced stiff competition from the illicit market. Based on current estimates, only about 40% of California consumers purchase cannabis from legal sources. However, if new enforcement measures proposed by Gov. Gavin Newsom come to pass, the tides may soon be turning in favor of the legal cannabis industry.
Gov. Newsom's budget proposal, announced May 14, 2025, proposes statutory changes that authorize the Department of Cannabis Control (DCC) "to seal an unlicensed premises when it is involved in illicit commercial cannabis activities."
This move mirrors New York's "Operation Padlock to Protect," an initiative that has generally been viewed as a success, although it has also faced some legal challenges.
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