California, October 16, 2025
News Summary
California Governor Gavin Newsom vetoed Assembly Bill 1332, which would have allowed licensed microbusinesses to ship medical cannabis directly to patients. Despite bipartisan support, Newsom cited concerns over administrative burdens and regulatory complications. The veto comes as medical cannabis sales are projected to decline significantly, raising concerns about patient access in the state. Advocates argue high taxes and restricted access drive patients to the unregulated market. Newsom has expressed willingness to find alternative solutions to improve access for patients in the future.
California Governor Gavin Newsom vetoed Assembly Bill 1332 on October 11, 2023, which sought to improve patient access to medical cannabis by allowing licensed microbusinesses to ship products directly to patients using common carriers like UPS or FedEx. The bill, sponsored by Assemblymember Patrick Ahrens from Silicon Valley, enjoyed broad bipartisan support, passing unanimously in both the California Senate (39-0) and the House (78-0) before reaching the governor’s office.
In his veto, Newsom cited concerns that the proposed direct-shipping program would create administrative burdens and complicate existing regulations. This decision comes amid a decline in medical cannabis sales projections for California, anticipated to fall below $200 million in 2025, down from approximately $540 million in 2021. Currently, medical cannabis accounts for about 4% of California’s licensed marketplace, a significant drop from previous years.
The Department of Cannabis Control (DCC) indicated that implementing the direct shipping system would require a substantial overhaul of California’s cannabis track-and-trace system, incurring both significant costs and additional time on the regulatory front. Fiscal assessments suggested a one-time implementation cost of around $269,000, with ongoing annual costs estimated at approximately $472,000 to manage compliance with the shipping requirements.
Despite these figures, Newsom noted that the annual costs represent less than 0.05% of the state’s taxable cannabis revenue from the previous year. Under A.B. 1332, only two businesses would have been permitted to ship medical cannabis directly to patients, while data from the DCC confirms that there are currently 290 active microbusiness licenses in California, more than 50 of which are authorized for retail, manufacturing, distribution, and cultivation.
The governor’s veto underscores the persistent challenges faced by medical cannabis patients, many of whom report difficulties finding specialized products that are not available at local dispensaries. Advocates for A.B. 1332 argue that high taxes and restricted access have pushed many medical cannabis patients towards the unregulated market. Despite California being the pioneer in legalizing medical cannabis through Proposition 215 in 1996, more than 57% of the state’s cities and counties still prohibit cannabis dispensaries.
To qualify for exemptions from sales-and-use taxes, medical cannabis patients are required to secure a Medical Marijuana Identification Card (MMIC) from local health departments, a process that can cost up to $200. Proponents of A.B. 1332 highlighted shortcomings in access to medicinal products for patients suffering from severe conditions like intractable epilepsy and advanced cancers. A three-year sunset provision was embedded in A.B. 1332 to facilitate a future reassessment of its effectiveness in resolving access issues.
Looking ahead, Newsom has expressed a willingness to collaborate with legislators to find alternative methods to enhance equitable access to medical cannabis for patients in California.
FAQ
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 was the outcome of Assembly Bill 1332?
Governor Gavin Newsom vetoed Assembly Bill 1332 on October 11, 2023.
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.
How does medical cannabis currently represent in the licensed marketplace?
Medical cannabis now represents roughly 4% of the licensed marketplace in California, a significant drop from previous years.
Why did Governor Newsom veto the bill?
He expressed that the proposed direct-shipping program would be burdensome and overly complex to administer.
What impact would A.B. 1332 have had on businesses?
The bill would only allow two businesses to ship medical cannabis directly to patients.
What did fiscal analysis indicate about the costs associated with A.B. 1332?
It 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.
Key Features of Assembly Bill 1332
| Feature | Description |
|---|---|
| Governor | Gavin Newsom |
| Bill Number | Assembly Bill 1332 |
| Introduction Date | October 11, 2023 |
| Sponsor | Assemblymember Patrick Ahrens (D-Silicon Valley) |
| Legislative Support | Unanimous support in Senate (39-0) and House (78-0) |
| Projected Sales (2025) | Less than $200 million |
| Current Market Share | Approximately 4% |
| Implementation Cost | One-time cost of $269,000 |
| Ongoing Annual Cost | Approximately $472,000 |
| Active Microbusiness Licenses | 290 |
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
- Britannica: Medical Marijuana Debate
- U.S. News: Where is Marijuana Legal? A Guide to Marijuana Legalization
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