California Cannabis Tax Fund: Department of Cannabis Control: Board of State and Community Corrections grants.

The California Assembly Committee on Budget proposes modifications to cannabis tax fund allocations and grant eligibility requirements through legislation that expands funding for enforcement activities while revising local government participation criteria. The measure authorizes the Department of Cannabis Control to use tax revenues for maintaining the state's track and trace system and conducting enforcement against unauthorized cannabis operations.

The bill removes existing prohibitions on providing grants to jurisdictions that ban commercial cannabis activities, instead establishing new eligibility standards requiring localities to either permit retail storefronts or, for areas with 10,000 or fewer residents, allow cannabis delivery services. The Board of State and Community Corrections must prioritize grant applications that include illicit market enforcement components and may distribute funds through both competitive and formula-based mechanisms to ensure consistent local government support.

Additional provisions maintain annual allocations of $10 million to California public universities for research on implementation impacts through 2028-29 and $2 million to UC San Diego's Center for Medicinal Cannabis Research. The measure preserves existing disbursements for environmental restoration, youth education and prevention, and law enforcement programs, including $3 million yearly to the California Highway Patrol for impaired driving protocols and technology development. As a budget-related appropriation, the legislation takes immediate effect upon passage.