California authorities have seized more than $70 million worth of illegal cannabis in just three months as part of the state’s latest crackdown on underground marijuana operations, officials said Tuesday.
The seizures – which included 42,000 pounds of illicit cannabis since July – represent more than a third of the $191 million in illegal cannabis products confiscated across 13 counties since January, according to Gov. Gavin Newsom’s office.
The enforcement surge comes amid growing concerns about illegal operators undercutting new and maturing states’ licensed cannabis markets. Similar challenges have emerged in other states like Illinois, where officials estimate more than one-third of cannabis sales occur in the illicit market.
State authorities have of late have been particularly focused on operators who misuse California’s official cannabis packaging symbols to deceive consumers, according to Bill Jones, chief of the California Department of Cannabis Control’s Law Enforcement Division.
“This deceptive practice confuses consumers and puts them at risk,” Jones said. “We are stepping up enforcement across the supply chain and shutting these operations down.”
California has been battling what industry insiders call “burner distributors,” licensed companies that divert legal cannabis products to other states where they command higher prices. These operations often abandon their licenses after shipping products across state lines, according to cannabis industry consultants.
The practice has become so widespread that legal California-produced cannabis products regularly appear in unlicensed shops in states like New York, bearing official California compliance labels and packaging.
Since Newsom created the enforcement task force in 2022, officials have seized and destroyed 162 tons of illegal cannabis worth about $536 million through more than 350 operations, according to the governor’s news release. The task force has eradicated 526,037 plants, confiscated 167 firearms and arrested 59 suspects.
The crackdown extends beyond traditional marijuana products, in part due to a state judge recently upholding California’s emergency hemp regulations, which banned any hemp goods containing detectable levels of THC. The rules came after state officials say they became concerned with rising health incidents linked to intoxicating hemp products sold in gas stations and convenience stores.
Earlier this month, a single operation netted 2,652 plants and $2.3 million in illegal cannabis and toxic pesticide products, according to officials.
Nathaniel Arnold, chief of the Law Enforcement Division at the Department of Fish and Wildlife, said illegal operations often threaten California’s natural resources through unregulated practices and toxic pesticide use.
The state’s Alcoholic Beverage Control agency has complemented the efforts, inspecting 673 locations and removing 1,622 illegal hemp products since the emergency regulations took effect, officials said.
State authorities have of late have been particularly focused on operators who misuse California’s official cannabis packaging symbols. Read More