California Governor Gavin Newsom has vetoed legislation that would have allowed certain cannabis microbusinesses to ship medical products directly to patients using common carriers such as FedEx and UPS, citing concerns that the proposed system would be ‘burdensome and overly complex to administer’.
Assembly Bill 1332, sponsored by Assemblymember Patrick Ahrens (D–Silicon Valley), passed the state legislature last month with unanimous support in both chambers before being rejected by the governor on 11 October. The bill aimed to expand access for patients who struggle to travel to dispensaries or find specialised products locally.
In his veto message, Newsom said that while he appreciated the goal of expanding patient access, the measure would have required substantial modifications to the state’s Cannabis Track-and-Trace system.
‘The Department of Cannabis Control (DCC) will need to revamp the California Cannabis Track-and-Trace System, which will take significant resources and time,’ he wrote.
“Moreover, this measure includes numerous restrictions on eligible products, many of which are unclear, overly narrow or unworkable, adding to the implementation challenge.”
According to a fiscal analysis by the Senate Appropriations Committee, the DCC estimated a one-time implementation cost of approximately $269,000 to modify the tracking system, and ongoing annual costs of about $472,000 to oversee compliance.
Newsom said that, given the bill would have permitted only two businesses to participate in the pilot programme, ‘the costs of administering this programme far outweigh the possible benefits to patients’.
He added that he remained open to working with legislators on other ways to ‘advance equitable access to safe and regulated cannabis’.
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Ahrens said the legislation was intended to address an ongoing decline in medical cannabis availability in California.
‘The availability of medical cannabis products has declined significantly due to regulatory burdens, high taxation and the prioritisation of adult-use recreational products over medicinal formulations,’ he said in a statement included in the bill analysis.
The measure proposed allowing microbusinesses holding an M-licence that engage in retail, manufacturing, distribution and outdoor cultivation to deliver limited categories of medical cannabis products, such as flower and tinctures made using non-volatile extraction methods, directly to registered patients.
Medical cannabis sales in California have fallen sharply, dropping from approximately $540 million in 2021 to a projected $200 million in 2025, according to the DCC. That represents just 4% of the state’s licensed market, down from what was once the largest medical cannabis market in the United States, generating an estimated $2.5 billion in annual sales less than a decade ago.
Advocates say the decline has been fuelled by high taxes and limited exemptions for medical patients. Although those holding a Medical Marijuana Identification Card (MMIC) are exempt from sales and use tax, the cards can cost up to $200 depending on the county, creating barriers for low-income patients.
Despite California’s early leadership in medical cannabis through Proposition 215 in 1996, more than half of the state’s cities and counties still ban dispensaries.
In 2022, lawmakers passed legislation requiring local jurisdictions to provide access through dispensaries or delivery services, yet many regions remain underserved.
The post California Medical Cannabis Home Delivery Bill Vetoed by Governor Newsom appeared first on Business of Cannabis.
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Assembly Bill 1332, sponsored by Assemblymember Patrick Ahrens (D–Silicon Valley), passed the state legislature last month with unanimous support in both chambers before being rejected by the governor on 11 October. The bill aimed to expand access for patients who struggle to travel to dispensaries or find specialised products locally.
‘Administrative complexity and high costs’
In his veto message, Newsom said that while he appreciated the goal of expanding patient access, the measure would have required substantial modifications to the state’s Cannabis Track-and-Trace system.
‘The Department of Cannabis Control (DCC) will need to revamp the California Cannabis Track-and-Trace System, which will take significant resources and time,’ he wrote.
“Moreover, this measure includes numerous restrictions on eligible products, many of which are unclear, overly narrow or unworkable, adding to the implementation challenge.”
According to a fiscal analysis by the Senate Appropriations Committee, the DCC estimated a one-time implementation cost of approximately $269,000 to modify the tracking system, and ongoing annual costs of about $472,000 to oversee compliance.
Newsom said that, given the bill would have permitted only two businesses to participate in the pilot programme, ‘the costs of administering this programme far outweigh the possible benefits to patients’.
He added that he remained open to working with legislators on other ways to ‘advance equitable access to safe and regulated cannabis’.
Join 300+ industry leaders at Business of Cannabis: New York — an exclusive one-day event presented by Prohibition Partners at The Wythe Hotel, Williamsburg, on November 6, 2025.
This VIP gathering will bring together investors, operators and policy-makers to explore strategies for driving investment and accelerating retail growth across the New York cannabis market.
Be part of the conversation shaping the future of legal cannabis in New York.
Secure your place now Declining access for medical patients
Ahrens said the legislation was intended to address an ongoing decline in medical cannabis availability in California.
‘The availability of medical cannabis products has declined significantly due to regulatory burdens, high taxation and the prioritisation of adult-use recreational products over medicinal formulations,’ he said in a statement included in the bill analysis.
The measure proposed allowing microbusinesses holding an M-licence that engage in retail, manufacturing, distribution and outdoor cultivation to deliver limited categories of medical cannabis products, such as flower and tinctures made using non-volatile extraction methods, directly to registered patients.
Medical cannabis sales in California have fallen sharply, dropping from approximately $540 million in 2021 to a projected $200 million in 2025, according to the DCC. That represents just 4% of the state’s licensed market, down from what was once the largest medical cannabis market in the United States, generating an estimated $2.5 billion in annual sales less than a decade ago.
Advocates say the decline has been fuelled by high taxes and limited exemptions for medical patients. Although those holding a Medical Marijuana Identification Card (MMIC) are exempt from sales and use tax, the cards can cost up to $200 depending on the county, creating barriers for low-income patients.
Despite California’s early leadership in medical cannabis through Proposition 215 in 1996, more than half of the state’s cities and counties still ban dispensaries.
In 2022, lawmakers passed legislation requiring local jurisdictions to provide access through dispensaries or delivery services, yet many regions remain underserved.
The post California Medical Cannabis Home Delivery Bill Vetoed by Governor Newsom appeared first on Business of Cannabis.
Continue reading...
