Last Tuesday, two California State Assembly committees held an informational hearing on the proposed consolidation of the cannabis regulatory structure and identifying elements of the illicit cannabis market.
The Governor’s January Budget proposes to consolidate the state’s three licensing entities into a single newly created Department of Cannabis Control by July 2021. While many important details remain to be announced by the Governor, the legislative committee members conveyed general concerns with the illicit cannabis market undercutting the legal market, and they asked how legislative oversight of the newly created Department would be conducted as well as how it would improve enforcement efforts against the illicit market. Details of the Governor’s proposed plan are expected to be released this spring.