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50 Years in Prison for Marijuana: Incarcerated People Call On Biden To Expunge Cannabis Convictions

More Perfect Union

How The Weldon Project Letter Aims to Hold Biden Accountable on Cannabis Clemency

By Taylor EngleFeb 09, 2022

Taylor Engle

Taylor is a writer and editor based in New York City. She specializes in health and wellness, music, and fashion. In her free time she does yoga and hangs out with her cat.

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When President Joe Biden was running for office, he made a very enticing promise on his campaign trail: that anyone in the U.S. with a cannabis-related offense on their record would have that expunged. Fast forward one year later, and that promise still hasn’t even come close to being realized.

However, this expungement issue doesn’t begin and end with Biden. Most states with some form of legal cannabis have rolled out legislation that includes the need for industry equity and expungement, yet many people still have those offenses living on their records – and some are even still incarcerated for cannabis-related crimes.

As a result, much of the industry has taken matters into their own hands, advocating for equity programs, spreading the word about the need for expungement, and pushing legislators to follow through on their promises.

The Weldon Project Demands Cannabis Clemency Now

While advocates throughout the industry – like the Last Prisoner Project and Supernova Women – have been on the frontlines of the fight for equity and expungement in cannabis, the industry will have to include leaders from other fields in order to present a well-rounded and thorough appeal.

Enter The Weldon Project letter, which included signatures from NBA star Al Harrington, Killer Mike, Meek Mill, Drake, Mike Tyson, Lil Baby, and over 150 artists, athletes, law enforcement, business leaders, elected and appointed government officials, and leading cannabis advocates.

The petition, which was delivered to President Biden on September 14, 2021, urges the president to follow through on his promise and grant a general pardon to anyone in the country who has been convicted of a federal cannabis offense.

“Enough is enough. No one should be locked up in federal prison for marijuana,” the letter reads. “No one should continue to bear the scarlet letter of a federal conviction for marijuana offenses.”

In a growing industry where everyone is trying to get in on the ground floor, leaving the formerly (and currently) incarcerated by the wayside is completely immoral.

A lying politician is hardly news, but this is a promise that Biden must follow through with in order to establish the legal industry with a clear conscience for everyone involved.

Advocates from the inside have been shouting at the top of their lungs about this issue for years, to no avail. Hopefully the involvement and support of experts from an array of leading American industries will help the federal government realize what a pressing issue this is, and how many people are refusing to look away until it is fully resolved.

Sign the cannabis clemency petition here.

Up Next

OCM Alleges 'Rent-a-License' Scheme, Seeks License Revocation

OCM Alleges 'Rent-a-License' Scheme, Seeks License Revocation

Photo by Jon Tyson on Unsplash

NY Revokes License in Rent-a-License Scam

New York’s cannabis watchdog says Omnium Health let unlicensed operators hide under its license — a textbook case of “reverse licensing.” Regulators want Omnium’s processor and distributor licenses revoked and have ordered a retail recall tied to products made by unlicensed processors. Here’s what happened, who’s affected, and what retailers and consumers should do next

At-a-Glance

What’s new: NY’s Office of Cannabis Management (OCM) issued a Notice of Pleading (NOP) charging Omnium Health (d/b/a Omnium Canna) with facilitating unlicensed production under its license and ordered a statewide retail recall tied to products made by unlicensed processors.
Why it matters: Regulators call it “reverse licensing” - unlicensed operators allegedly producing/packaging cannabis under a licensee’s umbrella, which undermines market integrity and fairness.
Penalties sought: License revocation (processor + distributor), debarment from future licensure, civil penalties tied to projected revenue, and destruction of unlawfully made products.
Timeline: Investigation began February 2025; OCM announcement issued October 20, 2025; coverage followed October 22, 2025.

What Exactly Is OCM Alleging?

OCM says Omnium let unlicensed businesses use its facilities and resources, and charged them rent, creating a “rent-a-license” (aka “reverse licensing”) arrangement. Investigators cite contracts, audits, and witness testimony supporting the claim.

The NOP also points to seized materials, including unlabeled THCA isolate (no batch IDs or traceability) and packaging labeled “Omnium d/b/a MFused,” which investigators say reflected space and license rental.

Why this is a big deal: If true, it allows unvetted operators to push product into the legal market without meeting NY’s compliance requirements, disadvantaging operators who follow the rules.

What the State Wants to Do About It

In the NOP, OCM says it will seek:

Revocation of Omnium’s processor and distributor licenses
Debarment from future licensure
Civil penalties tied to projected revenue from the unauthorized products
Retail recall of products made by unlicensed processors
Destruction of unlawfully produced cannabis products

OCM leadership framed the alleged conduct as a “blatant breach” of rules designed to ensure transparency and fairness and emphasized that licenses aren’t transferable and only licensed operators may produce and distribute cannabis.

Independent coverage by Ganjapreneur, Cannabis Science & Technology and others highlights the same core facts: the recall order, the “reverse licensing” allegations, and the scope of penalties OCM intends to pursue.

Read the OCM's NOP HERE:

omnium-compliance-action-release.pdf

What Does the Statewide Retail Recall Mean in Practice?

Scope: OCM ordered a retail recall “from the market of all products made by unlicensed processors.” That language is broad; the NOP ties the recall to products associated with the alleged unlicensed production. Licensed retailers should review inventory, manifests, and batch data, and follow OCM’s recall instructions as issued.

Retailer actions (practical steps):

Isolate inventory potentially linked to the NOP (check supplier, lot/batch IDs, and packaging).
Follow OCM recall communications (return/hold procedures, signage requirements, and consumer notifications).
Document everything (chain of custody, quantities, dates, and staff actions) to demonstrate good-faith compliance.
Proactively communicate with customers about refunds/exchanges per OCM guidance to maintain trust.
Note: The recall directive and penalties will be finalized through the OCM process; retailers should monitor official OCM updates.

Consumers: If you purchased items later identified in the recall, follow retailer/OCM instructions on returns or disposal and keep purchase receipts where possible.

How “Reverse Licensing” Warps the Market

The “rent-a-license” play gives unlicensed operators a shortcut into store shelves without the costs, controls, and accountability that licensed operators carry. That distorts pricing, erodes consumer confidence, and saps compliant operators’ margins, exactly why OCM’s Trade Practices Bureau was set up to pursue “market integrity” threats like this.

The Timeline: Key Dates to Know

February 2025: OCM launches the Omnium investigation via the Trade Practices Bureau after a compliance referral.
October 20, 2025: OCM issues the NOP, outlines alleged “reverse licensing,” and announces the recall and penalties it will seek.
October 22, 2025: Coverage appears in industry news outlets summarizing OCM’s actions and the recall scope.

What Happens Next?

Omnium can respond to the NOP and contest the allegations through New York’s administrative process. In the meantime, the recall directive stands, and licensees should treat OCM’s communications as active compliance instructions. (For official recall status/updates, check OCM’s site and notices.)

If You’re a Licensed Operator, Use This Moment to Tighten the House

Quick self-audit checklist:

No “license lending.” Ensure third-party or white-label agreements don’t give operational control or production cover to unlicensed entities.
Transparent contracts. Every manufacturing/packaging/fulfillment relationship should be documented, disclosed (when required), and readily auditable.
Lot-level traceability. Batch IDs, manifests, test results, and movement logs must be complete and easily retrievable.
Visitor/vendor controls. Access logs and SOPs should prevent “shadow” production on your premises.
Rapid recall readiness. Have a written plan for quarantining product, notifying retailers, and executing returns within 24 hours of a directive.

These aren’t “nice to haves.” They’re the minimum for surviving increased enforcement and for protecting the brand you’re working to build.

Frequently Asked Questions

What is “reverse licensing” (aka “rent-a-license”)?
A scheme where an unlicensed operator uses a licensee’s facilities/resources to produce or package cannabis, often for a fee, then moves that product into retail as if it were the licensee’s. OCM calls this a threat to market integrity.

Did OCM document specific issues?
The NOP references packaging tied to “Omnium d/b/a MFused” and unlabeled THCA isolate with no batch traceability, red flags for illicit production and potency manipulation.

Is every Omnium-related product recalled?
OCM’s order targets products made by unlicensed processors; retailers will receive guidance identifying what to pull. Monitor official OCM communications for SKU/lot specifics.

What penalties is OCM seeking?
Revocation of Omnium’s licenses, debarment, civil penalties linked to revenue from unauthorized products, and destruction of unlawfully produced items.

The Bluntness Take: If you’re running a legit operation in New York, this case is a warning shot. The state is drawing a clear line: no borrowed licenses, no shadow production, no traceability gaps. The market is still fragile, and any shortcuts will be treated like existential threats to the program. Stay tight, stay transparent, and act fast on recall guidance.

Hall of Flowers NYC 2025: Cali Vibes Minus the Pulse of NY Cannabis

Hall of Flowers NYC Debut: Cali Vibes Minus the Pulse of NY Cannabis

Photo courtesy of Hall of Flowers

Hall of Flowers NYC 2025: Cali Vibes Minus the Pulse of NY Cannabis

Hall of Flowers (HOF) made its New York debut with a clean, trade-first show that fostered deeper conversations over spectacle. With a buyers-only opening day and tight credentialing, the floor moved at a measured pace, ideal for discovery and deal-making.

Upon entering through the doors at Pier 36 it was refreshing to see row after row of identical booths, neat as a spreadsheet, designed to let the product speak for itself. Buyers drifted through the aisles with line sheets instead of selfie sticks, the volume dialed way down compared to last month's Revelry event at the same location. And, maybe that was the point. Hall of Flowers’ first New York edition was designed for commerce, not commotion: a buyers-only opening day, tight credentialing, a controlled environment and pace that favored real conversations over spectacle.

The uniformity of Hall of Flowers' format erased the booth-flex arms race; most of the brands stood shoulder-to-shoulder on product, pricing, and execution. “Much easier to have conversations here than at Revelry,” several attendees told us. Others called it “weak” or “quiet” by comparison. One marketing exec involved in the event went all in saying, “Revelry is a flea market compared to Hall of Flowers.” What he meant by that is: Hall of Flowers is a curated, high-end trade event, whereas Revelry functions more as a community marketplace. I could see his point.

Multi-state polish, East Coast reality

By mid-day, you could feel the gravitational pull of the many out-of-state companies, brands and people. California heavyweights showed up to stake a claim: Alien Labs/Connected teased their New York play via Fluent; Jetty lined up buyers with a tidy, retail-ready menu. For extract lovers, a Royal Leaf (NY) × Kalya (CA) rosin tease felt like the kind of cross-coastal uplift New York’s concentrate set has been waiting for.

Not to be outdone, Massachusetts cannabis also showed up in force. Curaleaf which has several (formerly-medical) retail locations in NY already, showcased some of it's latest and greatest. Northampton's Melt-to-Make was looking to expand the reach for its gummy bases that simplify the process of manufacturing all-natural gummies. Jason Reposa from Good Feels was making the rounds, as were Nova Farms and Nimbus Cannabis Co., among others.

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What New York had to show for itself

Even with the Multi-state attention, several New York outfits cut through precisely because the floor was calm:

CannaPrints was an interesting innovation turning cannabinoids into dissolvable (edible) tabs and infused rolling papers. A small sublingual reminiscent of sacremental bread/eucharist, just infused. Which begs the question: What would Jesus Do?
Electraleaf continued to showcase its music-meets-street aesthetic with a menu that’s actually ready for shelves—vapes, five-packs, classic eighths—the sort of line a retail buyer can slot tomorrow.
Boukét played the brand story game flawlessly, modernizing a slice of New York history (“bouquet” as a Harlem code word) into giftable, premium-leaning products and packaging that moves on sight as much as on spec.
Canna Cure Farms brought the sun-grown sermon without the sermon, slow-dried, carefully cured flower that lets terps do the talking. In a potency-obsessed market, that education arc matters.
Jenny’s (Jenny Loves Me) covered the wellness flank, sugar-free, kosher, vegan edibles built for dietary constraints, plus hash-resin vapes and petite pre-rolls for the “real weed, cleaner inputs” crowd.
Nanticoke offered something buyers always ask for and rarely get: a scalable, greenhouse-grown, in-state supply that can carry everyday price tiers without feeling like compromise.

None of these plays needed a 20-foot truss to make the case. On a level floor, they stood out on their own merits.

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Two events, one thriving ecosystem

Comparisons to Revelry were inevitable. Revelry’s Buyers’ Club has become the heartbeat of New York’s legal market with 300+ licensed retailers and 200+ brands under one roof, the culture loud and the pace relentless - just like the city that never sleeps. Hall of Flowers is more "craft fair": quieter, credentialed, built for deliberate and intentional marketing and sales that go from “nice to meet you” to “send the follow-up” in real time. The market is clearly healthy enough for both events, however it's this writers personal opinion that each should consider 'collaboration over competition', where these two competing events can shine as one, at least here in NY.

It's also worth noting that on the eve of the event, the Office of Cannabis Management emailed licensees warning that Hall of Flowers might involve on-site consumption and indirect retail sales, and that participating in an “unpermitted cannabis event” could trigger penalties under 9 NYCRR Parts 120 and 133. The notice spooked the ecosystem: several NY licensees told us they skipped the show entirely, and others pared back staff rather than risk a paperwork misread or risking their license. On the floor, though, HOF ran a tight, trade-only program, buyers-first scheduling, credential checks, and sampling confined to appropriate licensees. Organizers and attendees described operations as above board; the notice read more like a blanket, cover-your-asses advisory than an actionable violation. The effect was real - the room was quieter than it might have been, but the sky did not fall for those exhibiting and in attendance.

- YouTube www.youtube.com

What remains after the badges come off

Designing for decisions works. A buyers-first schedule and uniform builds kept attention on product, price, and plans—not flash.
Cross-state collabs are the fastest upgrade path. If Royal Leaf × Kalya is a preview, rosin buyers finally have something premium to point at—made here, influenced there.
New York still rewards authenticity. Out-of-state polish draws the crowd; New York provenance sets the tone and pace.

Bottom line: If Revelry captures the soul of New York cannabis community + culture, Hall of Flowers arrived as its sober counterpart, Cali vibes, yes, but disciplined, transactional, and oddly sufficient.

Diverse mix of people sitting outdoors, around a table smiling at camera

Hall of Flowers 2025: Why This Santa Rosa Showcase Remains a Standard Bearer for Cannabis Trade Shows

Press photo provided by Hall of Flowers

Hall of Flowers 2025: Cannabis Trade Show Leader

The cannabis industry has no shortage of events, but very few manage to balance business, culture, and community the way Hall of Flowers does. Since its launch in 2018, the Santa Rosa-based show has become a must-attend gathering for licensed brands, retailers, investors, and innovators.

This year’s edition takes place September 10–11, 2025, at the Sonoma County Fairgrounds, continuing a legacy that goes far beyond trade show floor traffic. Hall of Flowers has become a barometer for where cannabis is now and where it's heading—and how brands and buyers can stay ahead of the curve.

Mixed crowd walking around at outdoor conference or festival Scenes from Hall of FlowersPress photo provided by Hall of Flowers

A Curated Approach That Stands the Test of Time

Unlike many trade expos where volume trumps value, Hall of Flowers has remained highly curated. Exhibitors are vetted, attendees are qualified, and the result is a show that feels purposeful, not chaotic.

That focus has allowed the event to grow steadily while maintaining its reputation as a serious B2B marketplace. For many retailers and buyers in the California market, Hall of Flowers isn’t just another industry meet-up—it’s where real deals are made.

What sets Hall of Flowers apart is its commitment to making cannabis culture a central part of the experience:

Consumption lounges and sampling protocols that are compliant but still engaging.
Music, art, and culinary programming that elevate the atmosphere beyond booths and badges.
A sense of authenticity that reminds attendees why they’re in this space in the first place.

It’s this fusion of culture with commerce that ensures Hall of Flowers never feels like a sterile convention hall. Instead, it feels like a living snapshot of the cannabis movement, evolving in real time.

Overhead shot of Hall of Flowers conference - showing booths, vendors and attendees Scenes from Hall of FlowersPress photo provided by Hall of Flowers

Adapting to Industry Shifts

The cannabis landscape is constantly changing—tight regulations, shifting consumer demand, and new technologies keep everyone on their toes. Hall of Flowers has responded by:

Introducing new platforms like AXIS Club (exclusive networking for executives and buyers) and BLUEPRINT (a showcase for emerging technologies, packaging, and solutions).
Expanding to include festival-style elements, like live music and food, that connect brands more directly with consumers.
Offering compliance-friendly sampling systems that allow buyers to evaluate products responsibly.

By evolving with the market, the event has avoided the stagnation that plagues so many conferences.

West Coast Roots, National Relevance

While Hall of Flowers is deeply tied to California—the birthplace of modern cannabis culture—its influence is national. In fact, next month, New York will host it's first Hall of Flowers October 8 & 9. For comparison, New York’s long-standing Revelry Buyers Club carries a similar ethos: connecting licensed operators, retailers, and brands in a curated environment that prioritizes quality relationships over hype. Revelry will be hosting its latest Revelry Festival event on Friday and Saturday September 12 & 13 at Pier 36.

Together, events like Hall of Flowers and Revelry Buyers Club represent a shift toward smarter, community-driven trade experiences that support the legal market and elevate the cannabis industry’s credibility while lifting-up the entire cannabis community.

Two people talking at industry conference Respect My Region's Joey Brabo talking to an exhibitor at Hall of FlowersPress photo provided by Hall of Flowers

Why It Still Matters in 2025

For brands, Hall of Flowers is about visibility in front of the right buyers. For retailers, it’s about finding standout products in an increasingly crowded space. And for the industry as a whole, it’s about building an ecosystem where commerce, culture, and compliance can coexist.

Seven years in, Hall of Flowers remains more than just a trade show. It’s a statement: that cannabis deserves events as sophisticated and dynamic as the plant itself.

Animated GIF of wallet with money; with wife taking the wallet after spouse tries to hand denomination

Legal Cannabis Markets Hit Historic $25 Billion Tax Revenue Milestone

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Legal Cannabis Hits $25B Tax Milestone!

While 2024 set a new annual record of $4.4 billion in state cannabis taxes, California's decision to raise rates from 15% to 19% exposes the death spiral threatening legal markets nationwide

Legal cannabis markets have generated more than $24.7 billion in cumulative state tax revenue since 2014, with 2024 setting a record $4.4 billion — but California's proposed July 2025 tax hike from 15% to 19% reveals a fundamental contradiction in cannabis policy that could undermine the entire legal industry's future.

The unprecedented tax milestone represents both triumph and warning. While celebrating revenue success, industry experts warn that aggressive taxation is creating a vicious cycle that drives consumers back to illicit markets and threatens the sustainability of legalization itself.

The California Contradiction: Success Masking Systemic Failure

California leads all states with over $1 billion in cannabis tax revenue for 2024, but this apparent success masks a deeper crisis. On July 1, 2025, the state's cannabis excise tax was scheduled to rise from 15% to 19% — a staggering 26% increase mandated by a 2022 law that automatically raises rates when tax revenues decline. However, just this week, the California Assembly delivered a stunning 74-0 vote to save legal cannabis market from "Extinction Level Event." Unanimous bipartisan support for AB 564 delays the catastrophic 26% tax hike until 2030, but industry isn't out of the woods yet. The Senate vote to enact the bill will be the next crucial test of whether California is serious about saving its cannabis industry — or content to watch it collapse under the weight of its own contradictions.

All of this combined creates what industry experts call a "death spiral": when legal sales drop due to high taxes competing with illicit markets, the state responds by raising taxes further, making legal products even less competitive.

"More businesses will close sooner as the legal price is just too far away from illegally obtained products," warns Jerred Kiloh, president of the United Cannabis Business Association. "Less investment in starting or continuing cannabis operations will occur, and demand for cannabis licenses will decline exponentially."

Since January 2018, California has generated more than $6.7 billion in total cannabis tax revenue, but thousands of licensed businesses have shuttered due to what industry leaders describe as a toxic mix of overregulation, inconsistent enforcement, and sky-high operational costs that make competing with untaxed illicit markets nearly impossible.

image of California traffic road sign that says - END - at edge of cliff overlooking Pacific Ocean California’s Cannabis Tax Hike Is a Death Blow to the Legal Market Photo by Patrick Perkins on Unsplash

The Illicit Market Reality Behind the Revenue Numbers

The $25 billion in legal tax revenue tells only part of the story. State-funded research indicates that illicit markets continue to supply the majority of cannabis consumers in California despite years of legalization — a pattern emerging across multiple states with high tax rates.

Amy O'Gorman Jenkins of the California Cannabis Operators Association put it starkly: "We're urging the Legislature and Administration to act quickly and freeze the tax at 15%. If we want a regulated market to survive in California, the time to intervene is now."

The fundamental equation is simple but devastating: High taxes = higher prices = lower legal demand = more illicit activity = less tax revenue. This cycle not only undermines tax collection goals but defeats the primary public safety and consumer protection objectives of legalization.

States Walking the Tightrope: Revenue vs. Market Viability

Other leading cannabis states demonstrate the delicate balance required for sustainable tax policy. Illinois generated $578 million in 2024 tax revenue with a more moderate approach, while Michigan ($524 million) and Washington ($516 million) have maintained steady growth without the dramatic rate increases that are crushing California's market.

The contrast is stark: while these states show consistent growth in both revenue and market health, California's aggressive taxation is creating what industry leaders call "a slow-motion abandonment of legalization's promise."

States like New York and Massachusetts face similar challenges, burdening cannabis with heavy taxes and rigid regulations while wondering why legal sales lag behind projections and illicit markets remain robust.

Cannabis Tax Revenue Powers State Programs — When Markets Survive

Where sustainable tax policies exist, cannabis revenue has transformed state budgets. Legal cannabis taxes have funded Medicaid, education, school construction, housing, roads, early literacy, bullying prevention, behavioral health, alcohol and drug treatment, veterans' services, conservation, job training, conviction expungement expenses, and reinvestment in communities disproportionately affected by prohibition.

California's 15% excise tax supports programs for childcare and early childhood development, medical research, youth substance abuse prevention, and environmental recovery. However, these benefits become meaningless if overtaxation destroys the legal market generating the revenue.

Industry Employment Reflects Market Stress

The cannabis workforce data reveals the strain of current policies. While the industry supports 425,002 full-time equivalent jobs nationwide, employment dropped 3.4% in 2024 even as sales grew to $30.1 billion.

"The cannabis industry has shifted from a phase of hyper-growth to one of operational discipline," said Karson Humiston, Founder & CEO of Vangst. This "operational discipline" often means businesses consolidating, closing, or moving operations to more tax-friendly jurisdictions.

The employment decline reflects more than market maturation — it signals an industry under severe regulatory and tax pressure that's forcing efficiency through elimination rather than growth through opportunity.

The Federal 280E Problem Amplifies State Tax Damage

The tax burden becomes even more crushing when combined with federal restrictions. Cannabis companies cannot deduct normal business expenses under federal tax code Section 280E, creating effective tax rates that can exceed 70% in high-tax states like California.

This federal-state tax combination creates what industry experts describe as "fundamentally dishonest governance" — leaders claim to support thriving legal cannabis industries while enacting policies that make success virtually impossible.

A Growing Problem Threatening National Legalization Goals

Twenty-four states have legalized adult-use cannabis, but California's experience serves as a cautionary tale for emerging markets. States like Ohio and New York, despite showing growth, risk repeating California's mistakes if they prioritize short-term tax revenue over long-term market sustainability.

The lesson is clear: sustainable cannabis markets require tax policies that allow legal businesses to compete with illicit alternatives. Otherwise, legalization becomes an expensive failure that generates modest tax revenue while maintaining robust criminal markets.

Policy Solutions: Learning from Success and Failure

Successful cannabis markets share common characteristics: moderate tax rates, streamlined regulations, consistent enforcement against illicit operators, and policies that prioritize market development over revenue extraction.

Assembly member Matt Haney's bill to block California's tax hike passed its first committee vote unanimously, showing bipartisan recognition that the current path is unsustainable. However, with the increase already implemented, California faces a critical test of whether political leaders will prioritize long-term industry health over short-term revenue needs.

The Real Test: Sustainable Growth vs. Short-Term Revenue Grabs

The $25 billion tax revenue milestone should be celebrated — but with crucial caveats. This revenue represents the potential of well-regulated cannabis markets, not validation of any specific tax policy approach.

California's experience proves that treating cannabis as a limitless cash cow while ignoring market dynamics leads to industry collapse. The question for other states is whether they'll learn from this cautionary tale or repeat the same mistakes.

Nationwide legalization could generate $8.5 billion annually for all states, according to tax policy researchers, but only if states adopt sustainable policies that allow legal markets to thrive rather than merely survive.

Looking Ahead: Promise vs. Reality

The cannabis industry's evolution from rapid expansion to what experts call "operational discipline" reflects both market maturation and policy-induced stress. The $25 billion milestone demonstrates cannabis taxation's potential — but California's crisis reveals how quickly success can turn to failure with misguided policy.

For policymakers, the lesson is urgent: cannabis tax policy must balance revenue generation with market viability. Success means building sustainable industries that generate consistent, long-term tax revenue while achieving legalization's broader goals of consumer safety, criminal justice reform, and economic opportunity.

The $25 billion represents not just past achievement, but a foundation that could either support continued growth or serve as a peak before policy-induced collapse. The choice belongs to lawmakers willing to learn from both success stories and cautionary tales.

Analysis based on data from the Marijuana Policy Project, NORML, Vangst Staffing, Whitney Economics, and industry reporting on California's tax policy impacts.

image of California traffic road sign that says - END - at edge of cliff overlooking Pacific Ocean

California’s Cannabis Tax Hike Is a Death Blow to the Legal Market

Photo by Patrick Perkins on Unsplash

Death Blow: CA's Cannabis Tax

The Golden State just made it harder for cannabis businesses to survive — again. Here’s why this 26% tax hike is a gift to the illicit market.

California, the birthplace of modern cannabis culture and the largest legal weed market in the world, just pushed its struggling legal industry even closer to collapse.

On July 1, 2025, the state’s cannabis excise tax will rise from 15% to 19% — a staggering 26% increase — marking the maximum rate allowed under current state law. This decision, mandated by a revenue trigger in a 2022 law signed by Governor Gavin Newsom, reflects the grim reality: California’s legal cannabis industry is in free fall.

And this tax hike? It’s gasoline on the fire.

A Vicious Cycle: Why Higher Taxes Make a Bad Situation Worse

The justification for this increase is baked into state legislation. If cannabis tax revenues drop — as they have — the state must raise rates. On paper, that might sound like good fiscal policy. In practice, it’s a death spiral.

Cannabis sales are down not because demand has disappeared, but because California’s legal businesses can’t compete with the thriving illicit market — a market that pays no taxes, follows no regulations, and continues to supply the majority of consumers, according to recent state-funded research.

Higher taxes will only widen the price gap between legal and illegal products, driving even more consumers underground and pushing more licensed operators out of business.

historical image of store window that says - "pay your taxes now, here!" California’s Cannabis Tax Hike Is a Death Blow to the Legal Market - The Bluntness Photo by The New York Public Library on Unsplash

Industry Voices: “The Legal Price Is Just Too Far Away”

Jerred Kiloh, president of the United Cannabis Business Association, put it bluntly:

“More businesses will close sooner as the legal price is just too far away from illegally obtained products. Less investment in starting or continuing cannabis operations will occur, and demand for cannabis licenses will decline exponentially.”

He’s not exaggerating. Thousands of cannabis businesses have already shuttered due to a toxic mix of overregulation, inconsistent enforcement, and sky-high operational costs. Operators who stuck it out through the tough years were holding on for reforms — not a tax hike.

Amy O’Gorman Jenkins of the California Cannabis Operators Association echoed the warning:

“We’re urging the Legislature and Administration to act quickly and freeze the tax at 15%. If we want a regulated market to survive in California, the time to intervene is now.”

A Growing Problem Across the U.S.

California is not alone in this mistake. States like New York and Massachusetts are also burdening cannabis with heavy taxes and rigid regulations — all while wondering why legal sales lag behind projections and the illicit market remains robust.

It’s a simple equation:
High taxes = higher prices = lower legal demand = more illicit activity = less tax revenue.

Rinse, repeat, collapse.

Opinion: Stop Treating Cannabis Like a Cash Cow

What we’re seeing isn’t just bad policy — it’s fundamentally dishonest governance. Leaders claim to support a thriving legal cannabis industry, yet enact policies that make that goal virtually impossible.

By continually using cannabis as a fiscal crutch — without fixing rescheduling, regulations, licensing delays, enforcement disparities, 280E, or equitable access to capital — states like California are ensuring that only the biggest, most well-funded players can survive. And even they’re struggling.

Let’s call it what it is: a slow-motion abandonment of legalization’s promise.

What’s Next?

There is a glimmer of hope. Assembly member Matt Haney introduced a bill to block the tax hike, which passed its first committee vote unanimously on April 24. But with just weeks left before the increase takes effect, the clock is ticking.

The question is: Will California finally listen to its operators, workers, and consumers? Or will it double down on a broken system — and let the world’s largest legal cannabis market become a cautionary tale?

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