{"id":11018,"date":"2026-02-08T22:44:16","date_gmt":"2026-02-08T22:44:16","guid":{"rendered":"https:\/\/cannabisindustryjournal.com\/?post_type=feature_article&amp;p=38442"},"modified":"2026-02-08T22:44:16","modified_gmt":"2026-02-08T22:44:16","slug":"meet-californias-new-director-of-cannabis-control","status":"publish","type":"post","link":"https:\/\/cannitrol.com\/blog\/meet-californias-new-director-of-cannabis-control\/","title":{"rendered":"Meet California\u2019s New Director of Cannabis\u00a0Control"},"content":{"rendered":"<div id=\"wp_fb_like_button\" style=\"margin:5px 0 5px 5px;float:right;height:100px;\"><script src=\"http:\/\/connect.facebook.net\/en_US\/all.js#xfbml=1\"><\/script><fb:like href=\"https:\/\/cannitrol.com\/blog\/meet-californias-new-director-of-cannabis-control\/\" send=\"true\" layout=\"standard\" width=\"450\" show_faces=\"false\" font=\"arial\" action=\"like\" colorscheme=\"light\"><\/fb:like><\/div><div><img src=\"https:\/\/cannitrol.com\/blog\/wp-content\/uploads\/2026\/02\/meet-californias-new-director-of-cannabis-control.png\" class=\"ff-og-image-inserted\" \/><\/div>\n<p><span data-preserver-spaces=\"true\">California\u2019s medical cannabis market began in 1996 when voters passed Proposition 215 (the Compassionate Use Act), making it the first state to legalize cannabis for medical use. Twenty-two years later, Proposition 64 ushered in adult-use sales, which commenced in January 2018.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Initially, three separate agencies handled different aspects of the industry:<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The Bureau of Cannabis Control (BCC) oversaw retail sales, distribution, testing laboratories, and microbusinesses for both medical and adult-use cannabis. Cannabis Cultivation Licensing (part of the Department of Food and Agriculture) regulates and licenses commercial cannabis cultivation operations, including track-and-trace systems. The Manufactured Cannabis Safety Branch (part of the Department of Public Health) managed licensing and oversight of cannabis product manufacturing, such as edibles, concentrates, and topicals.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">In July 2021,<\/span> <span data-preserver-spaces=\"true\">these three programs were consolidated<\/span> <span data-preserver-spaces=\"true\">into the California Department of Cannabis Control (DCC) to streamline licensing and enforcement, enhance consumer protection, eliminate redundancies, and simplify compliance for businesses.<\/span><\/p>\n<h4><strong><span data-preserver-spaces=\"true\">A Market Teetering on the Edge<\/span><\/strong><\/h4>\n<p><span data-preserver-spaces=\"true\">Clint Kellum, the newly appointed DCC Director, faces a critical task- saving California\u2019s cannabis industry from collapse.<\/span> <span data-preserver-spaces=\"true\">This<\/span> <span data-preserver-spaces=\"true\">is no small task in a state that serves as the genesis of cannabis culture and cultivation expertise\u2014the very foundation on which<\/span> <span data-preserver-spaces=\"true\">the industry is being built<\/span><span data-preserver-spaces=\"true\">.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Kellum is no newcomer to the challenge. He has served as the department\u2019s chief operating officer for the past five years<\/span> <span data-preserver-spaces=\"true\">and brings<\/span> <span data-preserver-spaces=\"true\">more than 18 years of state government experience, including budget and policy development at California\u2019s Department of Finance. The DCC\u2019s responsibilities span issuing licenses for cultivation, retail, manufacturing, distribution, and laboratory services; monitoring operators to ensure compliance; and maintaining a law enforcement division focused on dismantling the illicit market.<\/span><\/p>\n<h4><strong>Navigating the Framework of Prop 64<\/strong><\/h4>\n<p><span data-preserver-spaces=\"true\">In a recent interview, Kellum broke down the hurdles facing the DCC, pointing out that<\/span> <span data-preserver-spaces=\"true\">many of the industry\u2019s biggest pain points were baked<\/span> <span data-preserver-spaces=\"true\">into the original voter-approved initiative. Proposition 64 established high tax rates, dictated how revenue would<\/span> <span data-preserver-spaces=\"true\">be allocated<\/span><span data-preserver-spaces=\"true\">, and granted 550 individual jurisdictions the right to \u201copt out\u201d of the legal market.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">While the industry often looks to the DCC for sweeping changes, Kellum notes that as a regulatory agency, his office does not have the authority to rewrite tax policy or override local land-use decisions. Instead, his strategy focuses on working within the existing legal framework to drive progress.<\/span><\/p>\n<h4><strong>The Push for Local Expansion<\/strong><\/h4>\n<p><span data-preserver-spaces=\"true\">One of Kellum\u2019s primary objectives is addressing \u201ccannabis deserts\u201d across the state. Because many local governments remain hesitant to permit retail sales, the DCC is pivoting toward an educational role to bridge the gap between state legality and local reality.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cWe have efforts to help educate and share information with local governments about the challenges of not having legal access in their jurisdictions,\u201d Kellum explains.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">He points to a recent Cal Poly research study demonstrating a direct correlation between the lack of retail access and the growth of the illicit market. By sharing this data, Kellum hopes to prove to local officials that \u201copting out\u201d often creates the very public safety issues they were trying to avoid.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Beyond advocacy, Kellum recognizes the administrative burden placed on small municipalities. \u201cIt is complicated on their end, too,\u201d he admits. \u201cThey may not have the resources to know how to run an RFP, a lottery, or a first-come, first-served licensing process.\u201d To combat this, the DCC is actively absorbing and sharing best practices to help local governments navigate the complexities of retail implementation.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">However, Hirsh Jain, CEO of<\/span> <a class=\"editor-rtfLink\" href=\"https:\/\/www.anandastrategy.com\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Ananda Strategy<\/span><\/a><span data-preserver-spaces=\"true\">, a business advisory firm working with many of California\u2019s leading cannabis brands and retailers, offers a more cautionary perspective. While education has value, many California cities remain reluctant to license cannabis businesses not because of an information gap, but because of what they\u2019ve observed in practice\u2014widespread business failures and disappointing tax revenues.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cThe hundreds of millions of dollars in cannabis tax revenue that the City of Los Angeles<\/span> <span data-preserver-spaces=\"true\">is owed<\/span><span data-preserver-spaces=\"true\">, but will likely never collect, is frequently cited by other jurisdictions as evidence that California\u2019s legal cannabis model is fundamentally flawed,\u201d Jain notes, attributing the problem largely to state regulatory and tax burdens.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Education alone, he argues, will not overcome the deep skepticism many local governments have developed in the decade since Proposition 64 passed\u2014skepticism that continues to drive their refusal to participate.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Jain suggests the state could go further by spotlighting successful local models already operating within California. \u201cCities such as San Francisco, which has adopted a 0% local cannabis tax rate and offers free medical cannabis ID cards, demonstrate how thoughtful local policy can support legal market participation,\u201d he says. By elevating these proven practices, the state can provide cities with concrete, real-world examples of what works.<\/span><\/p>\n<h4><strong><span data-preserver-spaces=\"true\">Reducing The Burden of Costs<\/span><\/strong><\/h4>\n<p><span data-preserver-spaces=\"true\">It doesn\u2019t take an MBA to understand that increasing taxes on already struggling operators could be the final blow for many in the California market. Director Kellum commended Governor Newsom for signing AB 564 in late 2025. The legislation effectively halted a planned 25% tax hike (which would have seen the excise tax jump from 15% to 19%) and locked the current rate until 2028<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Beyond tax relief, the DCC has restructured its funding to avoid increasing operators\u2019 costs. Previously, the department was funded almost entirely by regulatory fees paid by licensed operators during their annual licensing process. Last year, the department shifted approximately $70 million\u201440% of its budget\u2014from licensing fees to the state\u2019s cannabis tax fund.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cWhich really avoided us having to do what would have otherwise been a significant licensing fee increase,\u201d Kellum explains. \u201cSo, in some ways, I can understand if you\u2019re an operator, you didn\u2019t see that because you didn\u2019t feel the actual increase, but it is a cost avoidance because we\u2019re trying to be mindful of those.\u201d<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">While the change may not be immediately visible to operators who didn\u2019t experience a fee hike, it represents a significant effort to prevent additional financial strain on an industry already struggling with high operational costs and illicit market competition.<\/span><\/p>\n<h4><strong><span data-preserver-spaces=\"true\">Shifting The Regulatory Focus<\/span><\/strong><\/h4>\n<p><span data-preserver-spaces=\"true\">Beyond financial relief, the DCC is actively working to reduce regulatory complexity for operators. This year, the department\u2019s focus is on streamlining cultivation requirements. Currently, cultivators must tag each plant individually in the state\u2019s track-and-trace system\u2014a labor-intensive process that adds significant operational burden.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cWe\u2019re looking at ways to bring that into other groupings to track it, still maintain safety and integrity of our system, but not be so cumbersome on that front,\u201d Kellum says.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Jain says this reform is particularly urgent in light of a December 2025 court ruling that found California\u2019s implementation of the METRC track-and-trace system imposed unlawful and excessive burdens on licensees without adequate statutory authority. The decision, he notes, exposed long-standing flaws in how track-and-trace requirements have been administered and underscored the need for a more practical, legally sound approach.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">There are also legislative efforts underway to develop a combined activities license. This new license type would allow businesses engaged in multiple activities\u2014such as cultivation, manufacturing, and retail\u2014to operate under a single license rather than maintaining distinct licenses for each activity. The change would eliminate friction points<\/span> <span data-preserver-spaces=\"true\">that currently exist<\/span> <span data-preserver-spaces=\"true\">when moving products between different license types within the same business.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cBoth of those are in development now, they\u2019re not released publicly,\u201d Kellum notes, \u201cbut we are developing efforts to get those out.\u201d<\/span><\/p>\n<h4><strong>Combating the Illicit Market<\/strong><\/h4>\n<p><span data-preserver-spaces=\"true\">Nearly everything the DCC does<\/span> <span data-preserver-spaces=\"true\">is focused<\/span> <span data-preserver-spaces=\"true\">on supporting the legal market while suppressing illicit activity, including burner distros that transport products out of state. According to Kellum, this requires a multi-pronged approach that goes far beyond enforcement alone.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cIt is a confusing market for consumers and our law enforcement partners,\u201d Kellum acknowledges.<\/span> <span data-preserver-spaces=\"true\">The department is working to establish deeper relationships with local governments and<\/span> <span data-preserver-spaces=\"true\">local<\/span> <span data-preserver-spaces=\"true\">law enforcement<\/span> <span data-preserver-spaces=\"true\">entities<\/span> <span data-preserver-spaces=\"true\">to clarify<\/span> <span data-preserver-spaces=\"true\">the<\/span> <span data-preserver-spaces=\"true\">distinctions between legal and illegal operations and build coordinated responses.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The DCC is also requesting additional resources to expand its enforcement capacity, though Kellum stresses the limitations. \u201cWe\u2019re not going to enforce our way out of it, but it is a part of that effort,\u201d he says.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Financial support for local enforcement is<\/span> <span data-preserver-spaces=\"true\">coming<\/span><span data-preserver-spaces=\"true\">. The Board of State and Community Corrections, which receives funding from the Cannabis Tax Fund, will soon release a $125 million RFP prioritized for illicit market enforcement. This funding addresses resource constraints that prevent local governments from taking action against illegal operators in their jurisdictions.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Kellum believes expanding retail access reduces the illicit market\u2019s foothold by providing legal alternatives for consumers and, by supporting licensed operators with reasonable regulations and costs, keeping them competitive with unlicensed sellers. \u201cHaving a legal market that\u2019s functional for our operators supports against the illicit market, and so it\u2019s doing all those things in combination that are really the work we\u2019re trying to do,\u201d says Kellum.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">While the illicit market continues to erode legal market revenue, Kellum sees encouraging signs of stabilization. \u201cIf you actually look at the units sold at retail, that has continued to go up,\u201d he notes. \u201cHowever, while the lower prices are better for consumers, it does shrink margins for operators, and that becomes more and more challenging.\u201d<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">He also pointed to signs that price compression is starting to reverse for cultivators\u2014potential signals that the market is stabilizing. But Kellum is quick to temper optimism. That doesn\u2019t mean the job<\/span> <span data-preserver-spaces=\"true\">is done<\/span> <span data-preserver-spaces=\"true\">or that the industry is out of the woods. \u201cI just think it reinforces all the things I was describing here and the importance of continuing those,\u201d he said.<\/span><\/p>\n<h4><strong><span data-preserver-spaces=\"true\">Navigating the Future<\/span><\/strong><\/h4>\n<p><span data-preserver-spaces=\"true\">Director Kellum recognizes the critical importance of transparency and clear communication to avoid misperceptions, confusion, or misdirected frustration within the industry.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cI do think it\u2019s really important in all this that we try our best to understand each other and what levers we do control,\u201d Kellum explains.<\/span> <span data-preserver-spaces=\"true\">He\u2019s keenly aware that stakeholders often raise issues\u2014such as taxes and<\/span><span data-preserver-spaces=\"true\">\u00a0<\/span><span data-preserver-spaces=\"true\">local control\u2014that fall outside the DCC\u2019s direct authority.<\/span> <span data-preserver-spaces=\"true\">\u201cThose policies and authorities don\u2019t sit with me,\u201d he notes, pointing out that many of these constraints were embedded in Proposition 64 itself and approved by California voters.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">This complexity isn\u2019t an excuse, Kellum emphasizes, but it\u2019s essential to understand the context of the challenges. Statutory and regulatory changes require processes, which can be frustrating when the industry needs relief now.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Since stepping into the director role, Kellum has prioritized meeting with industry participants to understand their challenges firsthand and establish clear feedback loops. \u201cI\u2019m not going to be able to do everything each individual asks,\u201d he acknowledges, \u201cbut are there themes and areas where we can pick up and make progress together?\u201d<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">His approach centers on open communication, providing clarity about what the DCC can and cannot control, and consistent execution. \u201cI can\u2019t promise that everything\u2019s going to change tomorrow, because that wouldn\u2019t be realistic,\u201d Kellum says. \u201cWhat I can say is we know the areas of challenge, we\u2019re putting forth efforts intentionally in those areas of challenge, and we\u2019re hoping that steady progress will get us to the right outcome.\u201d<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">And if the current strategies don\u2019t deliver the needed results? \u201cWe\u2019ll revise what we\u2019re doing and continue to make efforts along those lines,\u201d he says<\/span><\/p>\n<div class=\"sharedaddy sd-sharing-enabled\">\n<div class=\"robots-nocontent sd-block sd-social sd-social-icon-text sd-sharing\">\n<h3 class=\"sd-title\">Share this:<\/h3>\n<\/p><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>California\u2019s medical cannabis market began in 1996 when voters passed Proposition 215 (the Compassionate Use Act), making it the first state to legalize cannabis for medical use. Twenty-two years later, Proposition 64 ushered in adult-use sales, which commenced in January 2018. Initially, three separate agencies handled different aspects of the industry: The Bureau of Cannabis [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[10974,5062,45,10975,8509,9290,10936,10851,9,10819,8518,1,3,8734,61,1736],"tags":[10976,5063,2628,10977,8535,9295,10937,10852,10820,8544,8739],"_links":{"self":[{"href":"https:\/\/cannitrol.com\/blog\/wp-json\/wp\/v2\/posts\/11018"}],"collection":[{"href":"https:\/\/cannitrol.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cannitrol.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cannitrol.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cannitrol.com\/blog\/wp-json\/wp\/v2\/comments?post=11018"}],"version-history":[{"count":0,"href":"https:\/\/cannitrol.com\/blog\/wp-json\/wp\/v2\/posts\/11018\/revisions"}],"wp:attachment":[{"href":"https:\/\/cannitrol.com\/blog\/wp-json\/wp\/v2\/media?parent=11018"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cannitrol.com\/blog\/wp-json\/wp\/v2\/categories?post=11018"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cannitrol.com\/blog\/wp-json\/wp\/v2\/tags?post=11018"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}