{"id":370487,"date":"2026-06-22T19:03:21","date_gmt":"2026-06-22T19:03:21","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ca\/370487\/"},"modified":"2026-06-22T19:03:21","modified_gmt":"2026-06-22T19:03:21","slug":"trump-endorsed-gop-california-gubernatorial-candidate-says-marijuana-taxes-and-regulations-are-too-high","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ca\/370487\/","title":{"rendered":"Trump-Endorsed GOP California Gubernatorial Candidate Says Marijuana Taxes And Regulations Are ‘Too High’"},"content":{"rendered":"

The taxes and regulations on marijuana are \u201ctoo high,\u201d according to California gubernatorial candidate Steve Hilton, a Republican endorsed by President Donald Trump.<\/p>\n

At an event in Sacramento on Thursday, Marijuana Moment asked Hilton\u2014who is running against former U.S. Department of Health and Human Services (HHS) Sec. Xavier Becerra, a Democrat, in a general election to become California\u2019s next governor\u2014about his cannabis policy position and challenges facing the state\u2019s industry.<\/p>\n

The GOP candidate said that after studying the issue and spending \u201csome time with the industry,\u201d he came to understand that there is a \u201cregulatory burden and a tax burden that is too high.\u201d<\/p>\n

\u201cThe original intent\u201d of legalization was to \u201cbring the industry, as it were, into the open\u2014and you\u2019ve actually seen the illegal industry growing even more since these policies\u201d were implemented, Hilton told Marijuana Moment. \u201cSo we\u2019ve got to make a change.\u201d<\/p>\n

He said he\u2019s \u201cactually in a conversation in great detail with the industry to look at the specific parts of the regulatory and tax burden that need to be changed in order to achieve the goals of legalization, which is a thriving industry that provides a product safely that people want to consume.\u201d<\/p>\n

As he\u2019s previously discussed, the gubernatorial hopeful said the voter-approved Proposition 64 that legalized marijuana for adult use in 2016 serves as \u201canother example of the corruption that we see here with the system in California,\u201d because, he claims, millions of dollars in tax revenue from cannabis sales that were supposed to be earmarked for substance misuse treatment went to \u201cDemocrat political organizations\u2026in small grants that they made deliberately hard to track.\u201d<\/p>\n

\u201cWhen you look at the websites of those organizations, this is taxpayer money. What do they do? Democrat political activity, voter registration, ballot harvesting\u2014all of these things,\u201d he said, without naming specific groups. \u201cIt\u2019s an example of how, after 16 years of one-party rule, they\u2019ve built this corrupt machine, and it\u2019s one of the reasons we really need change in California.\u201d<\/p>\n

Hilton\u2019s criticism of the implementation of cannabis reform notwithstanding, it\u2019s another sign of the times that both the Republican and Democratic contenders to replace term-limited Gov. Gavin Newsom (D) back the fundamental aims of marijuana reform policies.<\/p>\n

Not all California Republicans are on board with the reform, however. The vice chair of the Senate Budget Committee recently floated the idea of putting a new initiative on the state ballot to \u201creverse\u201d Proposition 64<\/a>, arguing that voters were misled and voicing concerns about the health impacts of marijuana use.<\/p>\n

\u201cWe have seen significant negative consequences of this legalization, both here as well as in other states,\u201d the senator, who was speaking at a hearing at which lawmakers\u00a0approved a bill to legalize marijuana dispensary drive-thru windows in California<\/a>, said.<\/p>\n

Becerra, who previously served in Congress and as California\u2019s attorney general, meanwhile, facilitated a scientific review process during his time as HHS secretary under the Biden administration that ultimately resulted in a recommendation to move cannabis from Schedule I to Schedule III of the Controlled Substances Act (CSA).<\/p>\n

But it was was the Justice Department under Trump in April that saw the process at least partially through, moving medical cannabis authorized by states to Schedule III. Marijuana could be fully rescheduled depending on the outcome of administrative hearings that begin this month<\/a>.<\/p>\n

A Schedule III reclassification of marijuana doesn\u2019t fully federally legalize it in the way states like California have, but it represents another meaningful step towards normalizing the cannabis industry. Marijuana businesses can claim tax deductions if they work with Schedule III drugs; they\u2019re barred from doing so for Schedule I and II drugs under an Internal Revenue Service (IRS) code known as 280E.<\/p>\n

\u2014
Marijuana Moment is tracking hundreds of cannabis, psychedelics and drug policy bills<\/a> in state legislatures and Congress this year. Patreon supporters<\/a> pledging at least $25\/month get access to our interactive maps, charts and hearing calendar so they don\u2019t miss any developments.
\"\"<\/a>
Learn more about our marijuana bill tracker<\/a> and become a supporter on Patreon<\/a> to get access.
\u2014<\/p>\n

Meanwhile, California regulators recently adopted emergency rules changes for the state\u2019s marijuana licensing process that are intended to make it easier for businesses to qualify for benefits<\/a>\u00a0in line with the Trump administration\u2019s recent move to federally reschedule medical cannabis.<\/p>\n

They also launched a new AI tool to help businesses identify marijuana product packaging may appeal to kids<\/a>\u00a0in violation of state rules.<\/p>\n

Separately, Newsom recently took credit for helping to lead the push for the state to legalize marijuana<\/a>\u00a0and discussed his own limited experience with using cannabis.<\/p>\n

In October, however, the governor vetoed a bill that would have allowed certain marijuana microbusinesses to ship medical cannabis products directly to patients<\/a>\u00a0via common carriers like FedEx and UPS, stating that the proposal \u201cwould be burdensome and overly complex to administer.\u201d<\/p>\n

Newsom did sign a bill earlier that month aimed at\u00a0streamlining research on marijuana and psychedelics<\/a>.<\/p>\n

In September, the governor also signed a measure into law to\u00a0put a pause on a recently enacted tax hike on marijuana products<\/a>.<\/p>\n

Separately, the state attorney general says\u00a0Indian tribes cannot independently engage in marijuana commerce<\/a>\u00a0with licensed cannabis businesses without first obtaining their own commercial license from state officials.<\/p>\n

California officials recently awarded\u00a0nearly $30 million in grants for marijuana-focused academic research projects<\/a>.<\/p>\n

Photo courtesy of Chris Wallis \/\/ Side Pocket Images.<\/p>\n

Marijuana Moment is made possible with support from readers. If you rely on our cannabis advocacy journalism to stay informed, please consider a monthly Patreon pledge.<\/p>\n

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