Major Changes Coming to CA Cannabis Market Under Gov. Newsom’s Budget


California Governor Newsom announced his proposed budget for the coming year, which included some important developments for the cannabis industry.

1.      The Governor has proposed consolidating the three cannabis licensing agencies into one new agency under a new Department of Cannabis Control by 2021. This will lead to significant regulatory simplification of the licensing process and other issues for the industry.

2.      The Governor’s plan will alter the way cannabis taxes are collected in an effort to simplify the process: moving the responsibility for the cultivation excise tax from the final distributor to the first distributor, and for the retail excise tax from the distributor to the retailer.

McAllister Garfield remains actively involved in the California cannabis industry, representing a mix of legacy operators and new entrants into the industry. The Firm presents a compelling value proposition in the California market, combining deep experience with both regulatory compliance issues with deep experience in corporate law.

If you have questions about the California market, contact me for more information.


Sean T. McAllister