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9 months ago
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Newsom’s Cannabis Regulators Just Took a Massive Court L — And It Changes Everything 🚨🌿

California’s cannabis system got rocked Tuesday after an Orange County judge ruled that the Department of Cannabis Control (DCC) has failed its own mission: preventing legally grown weed from being trafficked out of the state.

For years, critics have accused the DCC of ignoring a huge problem — billions in California-grown cannabis disappearing into the illicit market while the legal market struggles to breathe. Now, a judge has officially agreed: the state’s track-and-trace system, a database that’s cost taxpayers over $100 million, doesn’t meet legal requirements to catch shady activity.

⚖️ The Ruling

Judge Lee Gabriel said the DCC must fix its system because it doesn’t automatically flag suspicious transactions, something the law requires. A follow-up court hearing is set for Feb. 6 to figure out how the state is going to repair the mess.

💥 Catalyst CEO Elliot Lewis Scores a Major Win

The lawsuit was filed back in 2021 by Elliot Lewis, the outspoken, no-filter CEO of Catalyst Cannabis Co. He claimed the state allowed middle-man distributors with “burner licenses” to buy legal product and funnel it into the illegal market.

Lewis said the fix is simple — add automated alerts. Instead, regulators fought the lawsuit and insisted they were “manually reviewing” reports. The court didn’t buy it.

Lewis called the situation “outrageous”, saying the state spent $100 million on a system that doesn’t do its job. He even offered a settlement if the DCC agreed to simple improvements — they refused.

🌿 Legal Operators Still Drowning

Licensed businesses continue battling:

high taxes

heavy regulations

falling wholesale prices

an illicit market still bigger than the legal one

Tuesday’s ruling shines a bright spotlight on why California’s legal industry continues to struggle while unlicensed operators thrive.

😬 Lewis Expects Payback

Though he won, Lewis predicts the DCC will retaliate:
“Every time we call them out, they counteract us with meaningless inspections. I expect harassment because of our victory.” taken in California USA by @catalyst_memepage
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