California Cannabis Operators Association Responds to State Auditor's Youth Protection Findings

By Laura Braden, CaCOA's Communications Director

The California State Auditor recently released a comprehensive report highlighting significant concerns about cannabis packaging that may be attractive to children, along with unclear rules and insufficient enforcement hampering the Department of Cannabis Control's (DCC) ability to identify problematic packaging. 

As an industry that has consistently championed youth safety measures, the California Cannabis Operators Association (CaCOA) welcomes this examination while reaffirming our unwavering commitment to protecting California's children.

The audit's findings paint a troubling picture that reinforces concerns our industry has raised for years. Between 2016 and 2023, calls to California Poison Control involving children under five years old ingesting cannabis increased by 469%, rising from 148 to 842 cases. 

State Auditor Grant Parks found that “state law and DCC's regulations about design elements that are attractive to children are unspecific, leading to subjective and sometimes inconsistent determinations of whether cannabis product packaging is compliant.” 

Licensed Industry Leads on Youth Safety

California's licensed cannabis industry takes child-resistant packaging and labeling laws extremely seriously. The overwhelming evidence shows that most violations related to youth-attractive packaging occur in the illicit cannabis and unregulated hemp markets, not within our licensed industry. 

“We've been advocating for stronger youth protection measures and clearer regulatory guidelines for years because it's simply the right thing to do,” said Amy O’Gorman Jenkins, Executive Director of CaCOA. “Licensed operators know that our industry's long-term success depends on maintaining the highest standards for public health and safety. When we see gaps in enforcement or regulatory clarity, we don't wait for someone else to fix it; we step up and work collaboratively on solutions that protect children while ensuring fair, consistent enforcement.”

Proactive Industry Leadership on Consumer Protection

A prime example is Senate Bill 540 (Laird, 2023), which Jenkins helped advance. This law directed the DCC to continually evaluate cannabis labeling in line with evolving science and develop consumer education materials promoting responsible use.

Starting in 2025, the DCC will conduct regular reviews every five years to ensure California's standards keep pace with product innovation and emerging research. This creates a dynamic framework that can adapt to new challenges rather than relying on static regulations that may become outdated.

Real Problems Lie in Unregulated Markets

While licensed operators work within robust regulatory frameworks, the most significant threats to youth safety come from unregulated markets.

Illicit cannabis products and synthetic intoxicants (masquerading as “hemp”) flooding gas stations, convenience stores, and online platforms operate without testing, age verification, or the strict packaging requirements that govern licensed dispensaries. These products often feature cartoon characters, bright colors, and candy-like branding specifically

designed to appeal to young people.

Licensed dispensaries, by contrast, operate under strict regulations requiring child-resistant packaging, clear labeling, comprehensive testing, and tracking from seed to sale. However, the audit found that the DCC “only has the resources to inspect about half of the state's licensees per year but would ideally inspect every licensee annually”, limiting effective oversight even of compliant businesses.

Path Forward: Clear Rules, Fair Enforcement

The auditor recommended that lawmakers “specify in state law what flavors are prohibited” and improve DCC's documentation while “specifying penalties to disincentivize repeat offenders”. 

CaCOA strongly supports these recommendations, particularly calling for clearer regulatory standards that eliminate subjective interpretations.

We also support the auditor's suggestion to examine Oregon's system that “allows licensees to submit their proposed product packaging to the state's cannabis commission and, for a fee, have it evaluated for adherence to Oregon's laws and regulations”. Pre-approval processes could provide certainty for licensed operators while ensuring consistent youth protection standards.

Moving Forward Together

CaCOA appreciates State Auditor Parks' thorough examination of this critical issue and looks forward to working with the DCC, Legislature, and other stakeholders to implement meaningful reforms. Licensed operators remain committed to upholding California's packaging and labeling requirements while supporting continuous improvement in regulatory clarity and youth protection.

The path forward requires enhanced enforcement against illicit operators who flagrantly violate youth safety standards, clearer regulations that eliminate subjective enforcement, and continued support for the licensed businesses that have invested heavily in compliance and consumer protection. Together, we can ensure California maintains the nation's strongest safeguards for youth while preserving access to safe, tested cannabis products for adult consumers.