Our
ADVOCACY

• Advocating for Sensible Taxation: The current tax framework is unsustainable—CaCOA supports fair, reasonable tax policies that drive out the illicit market while generating revenue for public services. This was a foundational intent of Proposition 64, which promised a regulated market that balances economic viability with public benefit, yet excessive taxation continues to undermine legal businesses and fuel unregulated sales.

• Enforcing Parity and Compliance: The state must enforce its laws against illicit cannabis operators and intoxicating hemp manufacturers before imposing additional burdens on licensed businesses, focusing on protecting youth and public health.

• Fostering a Thriving, Responsible Retail Sector: A successful cannabis retail industry is key to a functional, equitable, and profitable supply chain—protecting and strengthening retailers benefits communities, consumers, and the entire industry.

• Expanding Safe Consumer Access While Protecting Youth: Every adult Californian should have access to safe, tested, and legally regulated cannabis products, while keeping these products away from minors.

• Building Community Partnerships: Responsible cannabis businesses are valuable community partners that support local economies, labor standards, and public safety initiatives.

• Protecting Small and Equity Businesses: Equity operators and small businesses deserve the same level of investment, access to capital, and regulatory protections as larger operators.

Ensure a Fair and Sustainable Cannabis Tax Framework

• Prevent the scheduled increase in the cannabis excise tax from 15% to 19% on July 1, 2025.

• Advocate for a lower, sustainable cannabis tax structure that prevents consumers from turning to the illicit market while generating reliable revenue for public services.

• Support legislative measures that reinvest cannabis tax revenue into community-benefiting initiatives, including enforcement against unlicensed storefronts and delivery services selling illicit cannabis, banned synthetic cannabinoids and intoxicating hemp products, and loan programs for small businesses, equity operators, and workforce development.

• Support legislative measures prohibiting double taxation, specifically applying the cannabis excise tax on local taxes.

Strengthen Regulatory Oversight of Intoxicating Hemp to Protect Public Health and Youth

• Enforce existing laws against unregulated intoxicating hemp products, which pose an urgent health risk to consumers and accessibility risk to minors.

• Support legislation to ensure hemp-derived intoxicating cannabinoids fall under the DCC's oversight, maintaining parity with cannabis regulations, including age verification, testing, and track-and-trace requirements.

• Advocate for a comprehensive labeling and testing framework for hemp-derived cannabinoids that includes robust screening for prohibited synthesized and converted cannabinoids, ensuring product transparency, consumer safety, and alignment with state cannabis testing standards.

• Protect consumer safety and market integrity by closing regulatory loopholes that allow intoxicating hemp products to evade taxation, quality controls, and age restrictions.

• Ensure transparency in the integration of hemp biomass into the cannabis supply chain to prevent diversion, inversion, and illicit interstate cannabis trade.

• Ensure tax parity between cannabis and intoxicating hemp products to prevent economic disadvantages for legal cannabis operators while funding community programs.

Reduce Illicit Cannabis Commerce and Promote the Stability of the Regulated Industry

• Advocate for statewide cannabis retail licensing expansion in local jurisdictions that continue to ban legal cannabis sales, ensuring consumers have access to safe, regulated products instead of being entirely dependent on the illicit market.

• Support legislation that allows debt restructuring and repayment programs for cannabis businesses struggling with tax liabilities to create solutions for the industry's growing debt crisis.

• Support commonsense legislation to ensure retailers and brands remain aligned during the growing debt crisis while maintaining standards for responsible sales practices.

Strengthen Responsible Retailer Representation in State Policy Decisions

• Advocate for greater retailer representation on the Cannabis Advisory Committee (CAC) to ensure policy decisions include the perspectives of those directly responsible for safe consumer access and youth protection.

• Oppose efforts that unfairly target retail operators with additional regulations that are not applied to other sectors of the cannabis industry.

Commonsense Reforms to Strengthen Public Safety and Streamline Retail Compliance and Expansion

• Work with the DCC to simplify licensing processes, reduce compliance costs, accelerate initial licensing timelines, and improve permit renewal efficiency while maintaining strong public health standards. By reducing delays, we can lower financial barriers and support sustainable industry growth.

• Clarify the calculation of concentrated cannabis in infused products to align with present industry practices and ensure accurate consumer information.

• Ensure testing regulations address public health and safety and can be implemented in the supply chain.

• Streamline temporary event regulations to support all licensees while enhancing safety protocols and community engagement.

Address Industry Debt and Improve Financial Stability for Community Benefit

• Develop policies that allow debt restructuring and repayment programs for cannabis businesses struggling with tax liabilities.

• Work with regulators and the California Department of Tax and Fee Administration (CDTFA) to create solutions for the industry's growing debt crisis that maintain tax revenue for community programs.

Expand Consumer and Public Safety Education

• Support initiatives that educate the public on the risks of illicit and untested hemp-derived intoxicating cannabinoids, particularly focusing on youth protection.

• Develop community engagement strategies that demonstrate the industry's commitment to responsible use and safe disposal of cannabis products.

Promote Equitable Retail Opportunities and Community Reinvestment

• Strengthen social equity programs by ensuring equitable access to funding, resources, and technical support for equity applicants.

• Champion initiatives that reinvest cannabis tax revenue into communities most impacted by cannabis prohibition.