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California Cannabis Leaders Urge Legislature to Pass AB 2537 for Commonsense Enforcement
- Jul 21
- 2 min read
The California Cannabis Operators Association (CaCOA) recently submitted a coalition letter supporting Assembly Bill 2537 (Chen), signaling a shift in how California can compete with the illicit market.
Right now, the Department of Cannabis Control has limited resources, and there's no law telling them where to focus. AB 2537 fixes that by creating a risk-based enforcement framework that prioritizes DCC action against unlicensed commercial operations, sales to minors, products that pose health and safety risks, environmental degradation, and serious violations. The DCC keeps full authority to enforce every provision of cannabis law.
Importantly, AB 2537 doesn't reduce enforcement power or excuse noncompliance by licensed operators. It doesn't eliminate penalties: it simply points the compass in the right direction.
The math is brutal. The illicit market represents roughly 60% of all cannabis consumption in California. Yet compliant businesses invested millions to meet rigorous testing requirements, inventory controls, age verification, and tax collection.
Meanwhile, unlicensed retailers advertise openly, pay nothing, and sell untested products. In 2025, California collected $1.05 billion in cannabis excise and sales tax from the legal market alone.
If the illicit 60% were taxed at the same rate, the state would collect an additional $1.6 billion annually for child care, youth prevention, environmental restoration, and public safety.
You can't regulate your way to a stronger legal market while the illicit market operates unchecked. AB 2537 ensures enforcement resources actually go where they'll matter most.
Join CaCOA and be part of this fight. Coalition strength is what got this bill in front of the Senate Appropriations Committee. Members get direct access to policy updates, strategic intelligence, and a unified voice when it counts.
