CALIFORNIA CANNABIS REGULATORS TRAINING FOR LAW ENFORCEMENT ROLE

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September 2025

The California Department of Cannabis Control (DCC) is expanding its enforcement efforts well

beyond its original role as a licensing and regulatory agency. Recent training activities and

budget proposals show the department actively seeking new powers and responsibilities

typically reserved for law enforcement.

In a publicly shared post, the DCC announced that its staff completed training at the Western

Regional Counterdrug Training Center. The training focused on identifying and disrupting illegal financial activity — including the use of cryptocurrency in unlicensed cannabis operations.

This training was conducted alongside members of the Unified Cannabis Enforcement

Taskforce (UCETF), which includes the California Department of Fish and Wildlife, the

Department of Tax and Fee Administration, and over a dozen other state and federal agencies.

DCC Moves Into Financial Crime Territory

Though DCC staff are not peace officers, they are now receiving instruction in tactics typically

reserved for criminal investigators — including those related to financial surveillance and

tracking illicit crypto transactions.

The department has long played a central role in compliance inspections and administrative

enforcement. But by training alongside armed agencies in counterdrug strategy, and focusing on financial tracking methods, the DCC is clearly shifting into an enforcement-heavy posture aimed at dismantling unlicensed cannabis networks from the inside out.

Budget Proposal Seeks Expanded Powers

These enforcement ambitions are also reflected in the state’s 2025–2026 budget proposal. The Newsom administration’s budget includes several provisions that would significantly grow the DCC’s authority:

● Reallocation of $57 million in cannabis enforcement funds from the Cannabis Control

Fund to the Cannabis Tax Fund, to avoid raising license fees while expanding state-led

enforcement.

● New staffing for enforcement, adding 5.5 full-time positions in 2025–26 and growing to 7

positions in future years.

● Trailer bill language that would authorize the DCC to:

○ Seal unlicensed cannabis sites

○ Delegate enforcement authority to local jurisdictions

○ Use emergency rulemaking powers to respond to the illicit market more

aggressively

The budget also expands eligibility for state-funded cannabis enforcement grants to more local agencies, increasing local collaboration and state-backed crackdowns on unlicensed activity.

Regulatory Overreach or Strategic Enforcement?

The DCC says these changes are necessary to level the playing field for licensed operators and protect public safety.

However, the agency’s trajectory raises concerns among some

stakeholders who believe this marks a fundamental shift in the agency’s identity — from

regulator to enforcer.

The move into financial crime territory, combined with military-style training and expanded

statutory authority, signals a clear intent: the DCC is no longer just regulating cannabis — it is

actively building the capacity to investigate, shut down, and penalize illegal operations, with law enforcement-style tools.

As California continues to battle a thriving illicit cannabis market, the question is no longer

whether the DCC is stepping into enforcement — but how far that mission will go, and what

oversight will be in place as it expands its reach.