While California politicians celebrated the state's "robust" legal marijuana industry, billions in cannabis sales were quietly flowing to out-of-state online vendors who have never paid California taxes, have never obtained California licenses, and have never stepped foot in a California dispensary. The culprit? THCA flower – federally legal hemp that's chemically identical to marijuana.
Now, with federal legislation set to restrict THCA flower beginning November 11, 2026, California's legal cannabis ecosystem is acknowledging a broader reality: regulations designed to create a safe, transparent marketplace may have unintentionally pushed some consumers toward online alternatives.
And those alternatives were often perceived by consumers as more affordable and accessible than traditional dispensaries. California legalized recreational marijuana in 2016 with the goal of establishing a regulated marketplace that would generate tax revenue and reduce unlicensed activity. Eight years later, the market looks more complex.
"California created the most expensive, most regulated cannabis market in the country," explains Mason Tipton, Co-Founder and COO of cannabis brand Dope Pros. "Then they acted surprised when consumers found legal alternatives that cost half as much and shipped to their door in two days." For many dispensary owners, the contrast has been challenging.
Read more at LA Weekly
