US State Cannabis Regulator Says Local Marijuana Bans Fuel Illicit Market, Data Shows

New data from California's Department of Cannabis Control (DCC) shows 96.6 percent of illicit marijuana seized by the state's Unified Cannabis Enforcement Taskforce (UCETF) in unincorporated areas between October 2022 and August 2025 came from just eight counties, nearly all of which ban licensed cultivators, according to State Affairs, which first obtained the figures. DCC Director Clint Kellum said the data shows local bans help the underground market, noting localities can prohibit licensed shops but cannot stop consumer demand. "When local governments deny consumers access to licensed retailers, the illicit market and organized crime benefit, while public health and safety is harmed," he said. DCC will keep targeting illegal operators involved in organized crime, unlawful distribution, illegal manufacturing, environmental harm, labor exploitation, and cross-jurisdictional activity, Kellum added. California lets cities and counties opt in or out of licensed marijuana businesses, which DCC says blocks legal access while allowing unlicensed sellers to operate freely. The task force was formed in 2022 to coordinate raids on illegal grows, manufacturers and retailers. The disclosure followed Governor Gavin Newsom's (D) announcement that agents seized 63,000 pounds of illegal cannabis worth over $104 million and destroyed 89,000-plus plants from April to June. UCETF has seized over 841,000 pounds (420 tons) since 2022. "Disrupting the illegal cannabis market is about more than seizing unlicensed products—it's about taking on criminal networks, removing illegal firearms out of the hands of dangerous individuals, and stopping activity that threatens public safety," Newsom said. Newsom is term-limited, and both major-party candidates to succeed him back legalization. Trump-endorsed Republican Steve Hilton said marijuana taxes and regulations are "too high." A Republican state senator, vice chair of the Senate Budget Committee, has proposed a ballot measure repealing Proposition 64, saying voters were misled about legalization's impact. He cited negative consequences of legalization seen in California and other states, comments made at a hearing where lawmakers also advanced a bill legalizing dispensary drive-thru windows. Democratic candidate Xavier Becerra, a former congressman and state attorney general, led the federal review as Biden's health secretary that recommended moving cannabis from Schedule I to Schedule III. DCC also recently eased licensing rules tied to federal rescheduling, launched an AI tool to flag child-appealing packaging, and awarded nearly $30 million in cannabis research grants. Newsom also vetoed a bill to allow direct-to-patient cannabis shipping, signed a law streamlining marijuana and psychedelics research, and paused a marijuana tax increase.