NEWS & RESOURCES

“Raising taxes on a struggling industry—especially one already undercut by untaxed, unregulated operators—defies economic sense and contradicts Proposition 64’s core intent,” CaCOA argues.

Governor Newsom’s revised 2025–26 state budget proposes a comprehensive strategy to combat California’s persistent illicit cannabis market. This strategy is operationalized through two complementary trailer bills: (1) expanded enforcement authority for the Department of Cannabis Control (DCC), and (2) amendments to Proposition 64 to reallocate enforcement funding.

SACRAMENTO, Calif. – The California Cannabis Operators Association is excited to announce the addition of two new members to its Board of...

Without legislative intervention, this tax hike will accelerate the collapse of California’s regulated cannabis market, harming consumers, public health, and ironically, the state’s bottom line.

“We're thrilled to report that all of our priority bills moved forward,” said Amy O’Gorman Jenkins, Executive Director of CaCOA. “This is a huge accomplishment that reflects the power of unified advocacy, strong partnerships, and sound policy."

The letter’s authors wrote that they support Newsom’s budget proposal that would shift funding for illicit market enforcement from fees on legal operators to excise taxes, but asked that the state’s government also freeze the excise tax at 15 percent.