July 06, 2026|Publications
Partner Richard P. Ormond has authored article “California promised a legal weed market. It built a mess instead” published by the San Francisco Chronicle on July 6, 2026.
California voters legalized adult-use cannabis in 2016 with the goals of bringing the industry out of the shadows, generating much-needed tax revenue and a desire to begin repairing the damage that decades of prohibition had inflicted on communities of color.
Nearly a decade later, the illegal market still controls an estimated 60% to 80% of cannabis sales in California. Licensed and lawful retailers are failing because they can’t compete with unlicensed growers who continue to operate outside the system. Illegal storefronts operate openly on our cities’ boulevards while the legal cannabis industry — the one Sacramento created, licensed and taxed — is dying. California’s legal weed market contracted for the third consecutive year in 2025, with retail sales dropping from $4.2 billion in 2024 to $3.9 billion in 2025. This was driven by competition from an enormous illicit market, severe pricing compression and a state excise tax hike.
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