California’s Governor has handed the cannabis industry, and supporters of marijuana reform, a mixed bag on bills.
Gov. Gavin Newsom, (D), over the weekend blocked a measure that would have legalized cannabis cafes. Supporters said it would give consumers more opportunities to socialize while allowing businesses to expand. He also vetoed legislation on marijuana packaging that industry operators claimed would burden them with excessive regulations. He also signed into law several other bills that will change the state’s laws on marijuana in areas like equity, tracking and testing.
The governor’s latest actions come after he rejected legislation that would have allowed possession of certain psychedelics, and signed a law to prohibit employers from asking candidates about previous marijuana use in the hiring process.
AB 374, the now-vetoed bill on cannabis cafes, would have permitted local governments to allow marijuana consumption lounges prepare and sell soft drinks and non-cannabis food at their facilities. The legislation would also have explicitly authorized “live music or other performances at the premises of a retail store or microbusiness… in the area where cannabis consumption is allowed and the sale tickets for these performances.”
Newsom, in a veto letter, wrote that he understood the intention of “providing cannabis retailers with increased opportunities for business and an avenue to bring in new customers,” but he was “concerned that this bill could undermine California’s long-standing smoke free workplace protections.”
He said that protecting the health and safety is of paramount importance. “I encourage the writer to address this concern with subsequent legislation.”
In response to Governor ‘s action , Assemblymember Matt Haney tweeted sad face emoticons.
— Matt Haney (@MattHaneySF) October 8, 2023
Newsom’s separate packaging legislation, which he vetoed, would have prohibited packaging for marijuana products that are “attractive” to children. The legislation would have prohibited the use of images like “cartoons or toys,” “any human or fictional,” “any animal or creature,” and “fruits or veggies, except for when they are used to accurately describe the ingredients or flavors in a product.”
In a veto letter, the governor stated that while he was “deeply” appreciative of the intention of the law, he felt that the definition of “attractive for children” was “overly broad.”
He said: “By banning entire categories of images in this bill, it would include commonplace designs. I’m not convinced that the additional limitations will protect children more than what is already required by law.” California must refine and improve its cannabis regulation to protect children’s health and safety. As such, I am directing the Department of Cannabis Control to strengthen and expand existing youth-related cannabis protections–including measures to enhance enforcement of those protections.”
California Cannabis Industry Association president Pamela Epstein praised the governor for his decision to veto this bill.
She said that “AB 1207 posed a serious threat to the industry due to its excessive restrictions. It inadvertently favored the illegal market, and depleted critical tax revenue earmarked for programs aimed at deterring youth.”
Separately, the governor signed a bill that alters how marijuana plants are tracked. Supporters say that this will improve environmental sustainability by eliminating single-use plastic tags.
Plastic products are a health risk to the public, and we’re finding microplastics even in our bloodstreams. “We should take responsibility to reduce the use of unnecessary plastics wherever possible,” said Sen. Allen (D), who sponsored the bill. As the cannabis industry in California continues to grow, it’s important that we support sustainability. SB 622 is a measure that aims to achieve this, and I am grateful to Governor Newsom for his signature of the commonsense measure.
Tiffany Devitt of CannaCraft’s regulatory affairs department also celebrated the law becoming a reality.
She said that the state had used between 200 million and 250 million plant labels over the last five years. This generated more than 1 million pounds plastic waste. “The cost of that waste is: the state of California spends around $15 million each year on these tags, which it provides to cannabis farms. “The biggest tragedy is that these tags didn’t prevent diversion as stated.”
This is the complete list of cannabis reform legislation that will become law after the Governor’s signature.
SB 700–Sen. Steven Bradford (D ): This legislation prohibits employers from asking applicants about previous marijuana use . It builds on the existing employment protections that were enacted in the last session, which prohibit employers from penalizing workers who have used cannabis according to state law while off-the-job.
Ben Allen (D) and Juan Alanis (R): Ben Allen (D), and Juan Alanis, (R ): This bill will change the way marijuana plants are tracked. Supporters say that it will promote sustainability by eliminating single-use plastic tags. The bill does not provide examples of alternative identifiers to those currently used to track marijuana plant. However, its supporters claim that regulators can implement environmentally sound policies like digital tags.
SB 302 — Sens. Henry Stern (D), Carlos Villapudua(D), Marie Waldron(R) and Scott Wiener ): This bill would allow people over 65 with serious chronic illnesses to use medical marijuana in health facilities including “home healthcare agencies. At the moment, only terminally ill people are allowed to use medical cannabis. Newsom stated in his signing message that next year he would like lawmakers to send him a “clean-up bill” to correct a drafting mistake. “The bill specifically excludes hospitals from the provisions. However, it could be interpreted as a narrowing of existing law to hospital patients who have a terminal illness AND chronic disease. He said that he did not believe this was the intention. Many people with chronic illnesses seek out medicinal cannabis to treat chronic pain as an alternative to opioids. Their living situation shouldn’t be a barrier.
AB 1021–Assemblymembers Buffy Wicks (D), Isaac Bryan (D) and Corey Jackson (D): This new law says that, if the federal government reschedules any Schedule I drug, California health professionals will automatically be able to legally prescribe and dispense it. This is especially true for the psychedelics MDMA and psilocybin, which are considered breakthrough therapies by the Food and Drug Administration. They could be approved as medical treatments as soon as next year.
AB 1171–Assemblymembers Blanca Rubio (D) and Matt Haney (D): The measure will give marijuana business licensees the right to pursue legal action against unlicensed cannabis businesses in state superior court if they can prove damages resulting from the operation. Previously, the law allowed only regulators and law-enforcement to arbitrate enforcement of the illicit cannabis market. This measure will allow private licensees to seek independent intervention.
SB 753 — Sens. Anna Caballero, Megan Dahle, Brian Dahle, Melissa Hurtado, and Henry Stern (D ): The legislation makes it a crime for adults to plant, cultivate or harvest more than six cannabis in a manner that causes “substantial harm” to the environment or groundwater, whether they do so intentionally or with “gross negligence.”
Assemblymember Phillip Chen (R),: Prior California law required that cannabis edibles with 10 mg THC per serving be tested for THC variance. Products that contained 10 percent more THC or 10 percent less than 10 mg were destroyed. This standard will result in even low THC products, such as cannabis drinks with 5mg of THC, failing the variance test. Therefore, this measure will force regulators to create “appropriate testing variations” for low THC products.
AB 1126–Assemblymembers Tom Lackey (R) and Cecilia Aguiar-Curry (D): The legislation will prohibit the unauthorized use of a universal cannabis symbol for commercial purposes and authorize the California Department of Tax and Fee Administration (CDTFA) to seize products that feature the symbol without authorization as contraband.
Assemblymember Brian Maienschein’s (D): The administrative fines and sanctions that local officials may impose on unlicensed cannabis growers can be extended to include unlicensed marijuana producers, processors, retailers, and distributors.
SB 51 — Sens. Steven Bradford (D strong> and Michael Gipson, (D strong> This legislation allows people who are eligible as social equity applicants to continue applying for and renewing provisional retailer licences until January 2031. The regulators stopped accepting provisional licensing for all types of businesses this summer. However, because the challenges with obtaining an annually licensed license continue to exist, this measure provides a narrow extension only applicable to equity applicants who are seeking retail licenses. Newsom stated that while he supports the effort, it “doesn’t address the fundamental issues which continue to increase costs for those who are seeking to participate in legal market” and that despite his support, the bill does not address these fundamental issues.
SB 540–Sen. John Laird, (D ): This measure requires the Department of Cannabis Control to collaborate with the Department of Public Health to develop a “brochure containing information on steps to safer use of marijuana” which will be given to customers who visit a dispensary the first time. The measure will also require that the state Department of Cannabis Control (DCC) work with the Department of Public Health (DPH) to create a “brochure with information about steps for a safer use cannabis” which must be provided to people who shop at a dispensary for th first time.
This is a list marijuana bills the governor has vetoed.
SB 58–Sen. Scott Wiener (D ): This bill would have allowed adults over 21 to possess and cultivate small amounts of DMT, mescaline and psilocybin. The bill would have also established a working group under the California Health and Human Services Agency to study and provide recommendations on the establishment of a regulatory framework for accessing the substances to facilitate and therapeutic use.
Assemblymember Matt Haney’s (D) The measure would have allowed dispensaries to serve non-cannabis foods and drinks if local approval was granted. The measure would also have explicitly allowed “live musical or any other performances to be held on the premises or microbusinesses licensed under this division, in areas where cannabis consumption is permitted and the sale tickets for these performances.”
AB 1207–Assemblymembers Jacqui Irwin (D), Josh Lowenthal (D) and Kevin McCarty (D): The legislation would codified a new definition for marijuana product packaging that is considered “attractive to children” and would therefore be prohibited. The legislation would have prohibited the use of images like “cartoons, robots, or toys,” “any human or fictional being,” “any fictional animal or creature,” and “fruits or veggies, except for when they are used to accurately describe the ingredients or flavors in a product.”
These cannabis-related bills are still on the Governor’s desk awaiting action:
Assemblymember Greg Wallis’ (R): Under this bill, civil penalties collected after enforcement actions against unlicensed marijuana business operators would be transferred to the local treasurers of the jurisdictions who brought the action.
SB 833–Sen. Mike McGuire (D ): This measure would allow regulators to DCC to approve cannabis cultivators’ requests to change their license types to a smaller category, or to inactive status. As of now, cannabis licensees cannot change their license type without going through the DCC’s license application process. But a variety of situations–including market volatility, drought, oversupply and more–could cause a cultivator to want a smaller license or become temporarily inactive.
Assemblymember Blanca Rubio’s (D): This bill would add representatives of both the Civil Rights Department of Florida and Department of Industrial Relations of Florida to a marijuana task force already in place. The task force is responsible for communicating between local and state cannabis regulators.
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The first time Marijuana Moment published the post California Gov. Vetoes Cannabis Café And Marijuana Licensing Bills But Signs Others Into law.
