California, October 16, 2025
News Summary
California Governor Gavin Newsom vetoed Assembly Bill 1332 on October 11, 2023. The bill aimed to allow licensed microbusinesses to ship medical cannabis directly to patients. Despite its unanimous support in the legislature, the governor expressed concerns over the complexities and costs associated with the shipping program, which could significantly impact patient access amidst declining medical cannabis sales in the state.
California Governor Vetoes Assembly Bill 1332, Halting Direct Shipping of Medical Cannabis
California Governor Gavin Newsom has vetoed Assembly Bill 1332 on October 11, 2023. The bill aimed to expand patient access to medical cannabis by allowing licensed microbusinesses to ship products directly to patients using common carriers like UPS or FedEx. The legislation was sponsored by Assemblymember Patrick Ahrens (D-Silicon Valley) and passed unanimously in both the California Senate (39-0) and House (78-0) before reaching the governor’s desk.
In his veto, Newsom expressed concerns that the proposed direct-shipping program would create a burdensome and overly complex administration process. This decision comes at a pivotal moment, as medical cannabis sales in California are projected to dip below $200 million in 2025, a significant decline from approximately $540 million reported in 2021. Currently, medical cannabis constitutes roughly 4% of the licensed marketplace in California, reflecting a notable drop from previous years.
Implementation Challenges and Costs
The Department of Cannabis Control (DCC) would need to revamp California’s cannabis track-and-trace system if the bill had passed, which would incur significant costs and time. Fiscal analysis indicated a one-time implementation cost of about $269,000 and ongoing annual costs of approximately $472,000 to oversee compliance with the direct shipping system. Despite these figures representing less than 0.05% of the state’s taxable cannabis revenue from the previous year, the potential burden on the DCC influenced the governor’s decision.
Under the terms of Assembly Bill 1332, only two businesses would have been permitted to ship medical cannabis directly to patients. Data from the DCC indicates that there are 290 active microbusiness licenses in California, with more than 50 holding licenses for retail, manufacturing, distribution, and cultivation.
Impact on Medical Cannabis Patients
The governor’s veto underscores ongoing challenges faced by medical cannabis patients, many of whom find it difficult to obtain specialized products that are not stocked in local dispensaries. Advocates argue that high taxes and limited access have forced medical cannabis patients into the unregulated market. Despite California being the first state to legalize medical cannabis via Proposition 215 in 1996, over 57% of California cities and counties still prohibit cannabis dispensaries.
Medical cannabis patients are required to obtain a Medical Marijuana Identification Card (MMIC) from local health departments to be exempt from the state’s sales-and-use tax, which can cost up to $200. Proponents of A.B. 1332 contend that many patients with specific medical conditions such as intractable epilepsy and advanced cancers face difficulties accessing necessary products.
Furthermore, a licensed physician testified that medicinal products have become “virtually extinct” in today’s marketplace. A.B. 1332 included a three-year sunset provision allowing lawmakers to reassess its effectiveness in addressing patient access issues.
Governor Newsom has indicated openness to collaborating with legislators on other strategies to enhance equitable access to medical cannabis in the future, even as the veto poses significant implications for current patients and cannabis businesses in the state.
Key Statistics
- Projected medical cannabis sales in California for 2025: Below $200 million
- Medical cannabis sales in 2021: Approximately $540 million
- Current percentage of licensed marketplace represented by medical cannabis: Roughly 4%
- Active microbusiness licenses in California: 290
- Implementation cost for the shipping system: About $269,000
- Ongoing annual cost for compliance: Approximately $472,000
- Percentage of cities/counties in California prohibiting cannabis dispensaries: Over 57%
- Cost of Medical Marijuana Identification Card (MMIC): Up to $200
FAQ
What is Assembly Bill 1332?
Assembly Bill 1332 aimed to expand patient access to medical cannabis by allowing licensed microbusinesses to ship products directly to patients using common carriers like UPS or FedEx.
Why did Governor Newsom veto Assembly Bill 1332?
Newsom expressed that the proposed direct-shipping program would be burdensome and overly complex to administer.
How does the veto affect medical cannabis patients?
The veto highlights ongoing challenges faced by medical cannabis patients, many of whom struggle to find specialized products not stocked in local dispensaries.
What is the current state of medical cannabis sales in California?
Medical cannabis sales in California are projected to dip below $200 million in 2025, down from approximately $540 million in 2021.
Chart: Key Features of Assembly Bill 1332
| Feature | Details |
|---|---|
| Bill Purpose | Expand patient access to medical cannabis through direct shipping |
| Sponsors | Assemblymember Patrick Ahrens (D-Silicon Valley) |
| Legislative Support | Unanimously passed in both Senate and House |
| Projected Cost | One-time implementation cost of about $269,000; ongoing costs of approximately $472,000 annually |
| Number of Businesses Allowed Shipping | Two licensed microbusinesses |
| Impact on Patients | Addresses difficulties in accessing specialized medical cannabis products |
Deeper Dive: News & Info About This Topic
- Business of Cannabis
- Cannabis Business Times
- Ganjapreneur
- Encyclopedia Britannica: Medical Marijuana Debate
- Google Search: California cannabis legalization
Author: STAFF HERE HUNTINGTON BEACH
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