California, October 16, 2025
News Summary
California Governor Gavin Newsom vetoed Assembly Bill 1332, which sought to expand patient access to medical cannabis by allowing licensed microbusinesses to ship products directly to patients. Despite broad legislative support, Newsom argued the proposal would create administrative complexities. This decision comes just as projections indicate a decline in medical cannabis sales in California, highlighting ongoing challenges for patients seeking access to necessary products.
California
California Governor Gavin Newsom vetoed Assembly Bill 1332 on October 11, 2023, a bill aimed at expanding patient access to medical cannabis. The legislation sought to permit licensed microbusinesses to directly ship cannabis products to patients using common carriers like UPS or FedEx.
The bill, backed by Assemblymember Patrick Ahrens (D-Silicon Valley), garnered unanimous support in both the California Senate (39-0) and the House (78-0) before reaching the governor’s desk. Despite this overwhelming approval, Newsom argued that the proposed direct-shipping program would introduce burdensome complexities in administration.
This decision comes amid projections indicating a sharp decline in California’s medical cannabis sales, anticipated to fall below $200 million by 2025, a drop from approximately $540 million in 2021. Currently, medical cannabis constitutes about 4% of the licensed marketplace in California, reflecting a significant decrease from earlier years.
Implementing A.B. 1332 would require the Department of Cannabis Control (DCC) to overhaul the California cannabis track-and-trace system, with a fiscal analysis revealing a one-time implementation cost of nearly $269,000 and ongoing annual expenses surpassing $472,000 to ensure compliance with the direct shipping system. Newsom pointed out that these annual costs account for less than 0.05% of the state’s taxable cannabis revenue from the prior year.
Notably, the bill would have only allowed two licensed microbusinesses to ship medical cannabis directly to patients. As per DCC data, there are currently 290 active microbusiness licenses in California, with over 50 holding licenses for retail, manufacturing, distribution, and cultivation. The governor’s veto signifies ongoing challenges for medical cannabis patients, many of whom face difficulties in finding specialized products that local dispensaries may not stock.
Advocates for A.B. 1332 caution that exorbitant taxes and limited access channels have pushed medical cannabis patients into the unregulated market. Since the state legalized medical cannabis through Proposition 215 in 1996, barriers to access have remained prevalent. Over 57% of California’s cities and counties continue to restrict 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 be as high as $200. Proponents of A.B. 1332 have highlighted that many patients dealing with severe medical conditions, such as intractable epilepsy and advanced cancers, find it increasingly difficult to acquire necessary products.
The legislation included a three-year sunset provision, enabling lawmakers to re-evaluate its effectiveness in addressing patient access issues. While Newsom’s veto closes one avenue for expanding access, he remains willing to collaborate with legislators on alternative strategies to improve equitable access to medical cannabis in California.
Frequently Asked Questions
What was the purpose of Assembly Bill 1332?
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.
Who sponsored Assembly Bill 1332?
The legislation was sponsored by Assemblymember Patrick Ahrens (D-Silicon Valley).
What were the projected sales figures for medical cannabis in California?
Medical cannabis sales in California are projected to dip below $200 million in 2025, down from approximately $540 million in 2021.
Why did Governor Newsom veto Assembly Bill 1332?
Newsom expressed that the proposed direct-shipping program would be burdensome and overly complex to administer.
Key Features of Assembly Bill 1332
| Features | Details |
|---|---|
| Goal | Expand patient access to medical cannabis via direct shipping |
| Sponsors | Assemblymember Patrick Ahrens (D-Silicon Valley) |
| Legislative Support | Passed 39-0 in Senate, 78-0 in House |
| Projected Sales | $200 million in 2025, down from $540 million in 2021 |
| Cost of Implementation | One-time cost of $269,000; ongoing $472,000 annually |
| Active Microbusinesses | 290 microbusiness licenses in California |
Deeper Dive: News & Info About This Topic
- Business of Cannabis: California Medical Cannabis Home Delivery Bill Vetoed by Governor Newsom
- Cannabis Business Times: California Governor Vetoes Bill to Allow Medical Cannabis Home Shipments
- Ganjapreneur: California Gov Vetoes Bill to Let Some Cannabis Microbusinesses Ship Directly to Patients
- Encyclopedia Britannica: Medical Marijuana Debate
- US News: Where is Marijuana Legal? A Guide to Marijuana Legalization
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