California, October 16, 2025
News Summary
On October 11, 2023, California Governor Gavin Newsom vetoed Assembly Bill 1332, which sought to expand patient access to medical cannabis. The bill aimed to allow licensed microbusinesses to ship cannabis products directly to patients but faced concerns over administrative complexities. The veto arrives as medical cannabis sales in California are projected to fall significantly by 2025. Advocates argue that the decision impedes access for patients in need of specific medical cannabis products amid many local bans on dispensaries.
California Governor Gavin Newsom vetoed Assembly Bill 1332 on October 11, 2023, a decision that halts the proposed expansion of patient access to medical cannabis. The bill aimed to permit licensed microbusinesses to ship cannabis products directly to patients using common carriers like UPS or FedEx. This legislation was sponsored by Assemblymember Patrick Ahrens from Silicon Valley and had previously passed unanimously in both the California Senate and House, securing 39 votes in the Senate and 78 votes in the House.
In his veto, Newsom expressed concerns that the proposed direct-shipping program would impose burdens and create complexities in its administration. This decision comes amid projections that medical cannabis sales in California are set to fall below $200 million in 2025, a steep decline from the approximately $540 million recorded in 2021. Currently, medical cannabis represents roughly 4% of California’s licensed marketplace, marking a significant drop from prior years.
The proposed legislation also drew attention to financial implications for the California Department of Cannabis Control (DCC), which would need to upgrade the state’s cannabis track-and-trace system to accommodate the direct shipping requirements. A fiscal analysis indicated one-time implementation costs of about $269,000, along with ongoing annual costs of approximately $472,000 to ensure compliance with the new shipping system. Newsom noted that those annual costs represent less than 0.05% of the state’s taxable cannabis revenue from the previous year.
Under A.B. 1332, only a maximum of two businesses would have been authorized to ship medical cannabis directly to patients. Currently, California has 290 active microbusiness licenses, with over 50 of them holding licenses across retail, manufacturing, distribution, and cultivation sectors. The veto by Newsom highlights the ongoing issues that medical cannabis patients face, particularly when seeking specialized products that are often unavailable at local dispensaries.
Advocates of the bill have pointed out that high taxes and limited access have pushed many medical cannabis patients into the unregulated market. Despite California’s pioneering status as the first state to legalize medical cannabis through Proposition 215 in 1996, more than 57% of California cities and counties still ban cannabis dispensaries. Patients must 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.
Supporters of A.B. 1332 expressed concerns for patients with specific medical conditions, such as intractable epilepsy and advanced cancers, who struggle to find necessary products. Testimonies indicated that medicinal cannabis products have become increasingly scarce in the current marketplace. Additionally, the legislation included a three-year sunset provision allowing lawmakers to reassess its effectiveness in improving patient access to medical cannabis.
Despite the veto, Newsom remains open to collaboration with legislators to explore other strategies aimed at enhancing equitable access to medical cannabis for California residents in the future.
FAQ
What was the purpose of 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.
What did Governor Newsom express in his veto?
Governor Newsom expressed that the proposed direct-shipping program would be burdensome and overly complex to administer.
What impact did the veto have on medical cannabis sales projections?
The veto comes at a time when medical cannabis sales in California are projected to dip below $200 million in 2025, down from approximately $540 million in 2021.
How many active microbusiness licenses exist in California?
According to DCC data, there are 290 active microbusiness licenses in California.
Key Features of Assembly Bill 1332
| Feature | Details |
|---|---|
| Bill Aim | To allow direct shipping of medical cannabis to patients from licensed microbusinesses. |
| Governor’s Decision | Vetoed Assembly Bill 1332 on October 11, 2023. |
| Legislative Support | Passed unanimously in the Senate (39-0) and House (78-0). |
| Projected Sales Drop | From approximately $540 million in 2021 to under $200 million in 2025. |
| Active Microbusinesses | 290 active microbusiness licenses in California. |
| Implementation Costs | One-time cost of about $269,000; ongoing annual costs of approximate $472,000. |
Deeper Dive: News & Info About This Topic
- Business of Cannabis
- Wikipedia: Medical Cannabis
- Cannabis Business Times
- Google Search: California cannabis legislation
- Ganjapreneur
- Encyclopedia Britannica: Medical Marijuana Debate
Author: STAFF HERE CORONADO
The Coronado Staff Writer represents the experienced team at HERECoronado.com, your go-to source for actionable local news and information in Coronado, San Diego County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Coronado Island Film Festival, productions at Lamb’s Players Theatre, community workshops at John D. Spreckels Center, and iconic celebrations at Hotel del Coronado. Our coverage extends to key organizations like the Coronado Chamber of Commerce and Visit Coronado, plus leading businesses in hospitality, dining, and tourism that drive the local economy. As part of the broader HERE network, including HERESanDiego.com, HEREHuntingtonBeach.com, HERELongBeach.com, and HERELosAngeles.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
