California, October 16, 2025
News Summary
Governor Gavin Newsom has vetoed Assembly Bill 1332, which aimed to improve patient access to medical cannabis in California by allowing licensed microbusinesses to ship products directly to patients. The bill passed unanimously in both legislative chambers but faced concerns from the governor regarding its administrative complexity. This veto adds to the challenges faced by medical cannabis patients, especially as market sales are expected to drop significantly in the coming years, limiting access to necessary treatments.
California Governor Gavin Newsom has vetoed Assembly Bill 1332, a significant piece of legislation that aimed to enhance patient access to medical cannabis by permitting licensed microbusinesses to ship products directly to patients using common carriers like UPS or FedEx. The veto was delivered on October 11, 2023, after the bill received unanimous support in both the California Senate and House.
Sponsored by Assemblymember Patrick Ahrens from Silicon Valley, A.B. 1332 initially garnered praise as a necessary reform for medical cannabis patients. The bill passed with votes of 39-0 in the Senate and 78-0 in the House, reflecting strong bipartisan support. However, Newsom highlighted concerns about the complexity and administrative burden that the direct-shipping program would impose on the state.
The veto comes at a challenging time for the medical cannabis market in California. Sales are projected to decline to less than $200 million by 2025, a significant drop from approximately $540 million in 2021. Currently, medical cannabis constitutes roughly 4% of the licensed marketplace, indicating a stark decrease compared to previous years.
The Department of Cannabis Control (DCC) would need to overhaul the state’s cannabis track-and-trace system if A.B. 1332 had been enacted. This overhaul would involve substantial costs and time, with a fiscal analysis estimating a one-time implementation cost of about $269,000 and ongoing annual expenses of approximately $472,000. These costs represent less than 0.05% of California’s taxable cannabis revenue from the previous year. Moreover, the bill would have limited direct shipping to just two businesses, even though there are 290 active microbusiness licenses in the state, with over 50 holding licenses for retail, manufacturing, distribution, and cultivation.
This veto has raised concerns among advocates, particularly as many medical cannabis patients struggle to access specialized products that local dispensaries do not carry. High taxes and restricted access have compelled some patients to turn to the unregulated market. California was the pioneer in legalizing medical cannabis back in 1996 with Proposition 215. However, the landscape has evolved poorly, as over 57% of California cities and counties still ban cannabis dispensaries altogether.
Patients seeking to benefit from medical cannabis 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 indicated that individuals suffering from specific medical conditions like intractable epilepsy and advanced cancers face significant barriers in accessing the necessary products. Medical practitioners have expressed concerns that medicinal products have become nearly “virtually extinct” in the current marketplace.
A three-year sunset provision was included in A.B. 1332, allowing lawmakers to evaluate its effectiveness in alleviating patient access issues. While Newsom has vetoed this particular bill, he remains open to future collaborative efforts with legislators aimed at improving equitable access to medical cannabis in California.
Frequently Asked Questions (FAQ)
- What bill did Governor Newsom veto regarding medical cannabis?
- Governor Gavin Newsom vetoed Assembly Bill 1332 on October 11, 2023.
- What was the aim 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.
- How did the legislature respond to A.B. 1332?
- A.B. 1332 passed unanimously in both the California Senate (39-0) and House (78-0) before reaching the governor’s desk.
- Why did Governor Newsom veto A.B. 1332?
- Newsom expressed that the proposed direct-shipping program would be burdensome and overly complex to administer.
- How is the medical cannabis market projected to change in California?
- Medical cannabis sales in California are projected to dip below $200 million in 2025, down from approximately $540 million in 2021.
- What challenges do medical cannabis patients face?
- The governor’s veto highlights ongoing challenges faced by medical cannabis patients, many of whom struggle to find specialized products not stocked in local dispensaries.
- What is required for patients to be exempt from the state’s sales-and-use tax on medical cannabis?
- Medical cannabis patients are required to obtain a Medical Marijuana Identification Card (MMIC) from local health departments.
Key Features of Assembly Bill 1332
| Feature | Description |
|---|---|
| Veto Date | October 11, 2023 |
| Sponsored By | Assemblymember Patrick Ahrens (D-Silicon Valley) |
| Legislative Support | Passed Senate and House unanimously (39-0 and 78-0) |
| Projected Sales | Medical cannabis sales projected below $200 million by 2025 |
| Implementation Cost | Estimated one-time cost of $269,000 and ongoing annual cost of $472,000 |
| Patient Access Challenges | Many patients struggle to find specialized products in dispensaries |
| Microbusinesses Allowed for Shipping | Only two businesses could ship medical cannabis directly |
| Medicinal Products Availability | Products have become increasingly scarce in the market |
Deeper Dive: News & Info About This Topic
- Business of Cannabis
- Wikipedia: Medical Cannabis
- Cannabis Business Times
- Google Search: California Medical cannabis
- Ganjapreneur
- Encyclopedia Britannica: Medical Marijuana Debate
- Hemp Gazette
- Google News: California Governor Newsom
- US News
- Google Search: Marijuana Legalization
Author: STAFF HERE BEVERLY HILLS WRITER
The Beverly Hills Staff Writer represents the experienced team at HEREBeverlyHills.com, your go-to source for actionable local news and information in Beverly Hills, Los Angeles 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 Rodeo Drive Concours d'Elegance, the Beverly Hills artSHOW, Concerts on Canon, and holiday celebrations throughout the city. Our coverage extends to key organizations like the Beverly Hills Chamber of Commerce and Visit Beverly Hills, plus leading businesses in luxury fashion, hospitality, and entertainment that drive the local economy. As part of the broader HERE network, including HERELosAngeles.com, HERESantaAna.com, HEREHuntingtonBeach.com, and HERECostaMesa.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
