California cannabis chief steps down amid market challenges

The chief regulator of the biggest adult-use cannabis market in the country is stepping down.Nicole Elliott, director of the California Department of Cannabis Control since 2021, will leave the position at the end of the year, she announced on Friday.

ADVERTISEMENT “I am not stepping away because the mission is complete,” Elliott posted on LinkedIn.“I am stepping away because the foundation is strong.” “This work has been one of the great privileges of my life,” her post added in part.

“Not because it was easy, but because it mattered.“Building public trust is hard work.

Doing it in real time, under scrutiny, in a complex and evolving industry, is even harder.” A successor was not named.California’s legal cannabis market struggles Elliott’s departure comes as the California market continues to struggle with high taxes and a large illicit market that have combined to hurt legal sales.

Legal sales have declined by nearly $1 billion since 2021, from $5.7 billion that year to $4.88 billion in 2024, according to state data. ADVERTISEMENT And in September of this year, monthly sales tumbled by 9.5% year-over-year to $298 million, according to cannabis industry data and analytics company Headset.

That’s despite Gov.Gavin Newsom, who named Elliott to her role, banning competition from hemp-derived THC with an emergency ban later made permanent.

Departing California cannabis chief praised Despite that, several people in the cannabis community applauded Elliott for her efforts over the years.“While I’ve often been critical of the broader system and challenges in California’s regulated market, it’s impossible not to appreciate the weight and complexity of the role you’ve held,” posted Ben Larson, CEO of ingredients manufacturer Vertosa.

“Building a completely new regulatory framework in real time, under immense scrutiny, in the most con...