California Governor Gavin Newsom has vetoed a bill that would have allowed cannabis cultivators to sell directly to consumers
Assembly Bill 1111, which was introduced by Assembly Member Gail Pellerin, was designed to let cannabis growers sell their products at state temporary events for up to 32 days per calendar year, with the requirement that all products sold must be cultivated by the licensee, according to Newsom. But he ultimately halted the measure due to concerns over potential impacts to California’s existing cannabis retail market.
“While I appreciate the author's intent to support small and equity cannabis cultivators, I am concerned that the bill's broad eligibility, which extends to the vast majority of licensed cultivators, would undermine the existing retail licensing framework and place significant strain on the Department of Cannabis Control's ability to regulate and enforce compliance,” wrote Newsom.
Newsom however said he’d be willing to consider a “more flexible and narrowly focused” version of this bill next year.
“Such policies must be considered within the broader context of efforts that are necessary to address the fundamental issues straining the legal cannabis market, such as competition from unregulated sources and improving access to regulated products. It is essential that we prioritize solutions that strengthen, rather than further burden, the existing regulated market,” he wrote.
The vetoed bill as written would have required applicants to meet size constraints to be eligible for the temporary licenses. Specifically, applicants could not have been growing more than one acre of cannabis, 22,000 square feet under a mixed-light tier 1 cultivation license, or 5,000 square feet under a mixed-light tier 2 or indoor cultivation license.
