SACRAMENTO – On September 2, 2026, California Governor Gavin Newsom announced the state’s regulated cannabis market has generated nearly $8.4 billion in tax revenue since 2018, supporting programs including childcare, youth substance abuse prevention, medical research and environmental recovery. 

“Stop and think for a moment how many more billions of dollars the state would receive in tax revenue if the illicit cannabis market completely disappeared,” said California Statewide Law Enforcement Association (CSLEA) President Alan Barcelona.  “The tax revenue generated by California’s regulated cannabis market highlights the need for continued enforcement against illegal operations.  The illegal operations in this state far outnumber the legal ones, this is why the state must continue to employ law enforcement agents to target this.”

Unlicensed businesses not only avoid taxes and regulatory requirements, but also compete directly with licensed businesses that invest in compliance, consumer protections and their communities.

“Department of Cannabis Control detectives work with their fellow state, federal, and local law enforcement partners to investigate illegal cannabis operations,” said California Association of Criminal Investigators (CACI) President George Tiongson.  “California is a big state, and the number of suspected illegal operations continues to grow.  Investigating these operations for meaningful impact takes careful planning which involves officer, public, and environmental safety.  If we increase law enforcement resources, we have a better advantage of shutting these illegal operations down.”

Shutting down illegal cannabis operations not only contributes to public safety and protecting the environment, it also works to protect the integrity of the legal cannabis market so that businesses that follow the rules are not undercut by operators who do not.