Governor Newsom Vetoes Small Farmer Direct Sales Bill After Three Successive Years of Legislative Efforts

AB 1111 would have allowed small licensed cultivators to sell their cannabis directly to consumers at state-licensed events

SACRAMENTO, CA, UNITED STATES, October 1, 2024 /EINPresswire.com/ -- Origins Council, a nonprofit advocacy organization representing over 800 small, independent cannabis businesses in California's historic cannabis farming regions, expressed profound disappointment today in response to Governor Newsom’s veto of AB 1111, a two-year bill introduced in 2023 by Assemblymember Gail Pellerin, representing Santa Cruz and Santa Clara counties.

AB 1111 would have directed the California Department of Cannabis Control to establish a small producer events sales license, authorizing small-scale cannabis farmers to sell their own cannabis at temporary, state-licensed, cannabis events. AB 1111 built upon the efforts of a similar bill, AB 2691, which was introduced by North Coast Assemblymember Jim Wood. In his veto message, the Governor expressed concerns regarding broad eligibility and stated that AB 1111 would place “significant strain on the Department of Cannabis Control's ability to regulate and enforce compliance.”

“For over a year, we sought to work with the Department of Cannabis Control to address concerns raised regarding implementation and the scope of qualifying cultivators proposed in AB 1111,” said Genine Coleman, Executive Director of Origins Council, a sponsor of the measure. “We accepted a number of amendments requested by the department to address these concerns. Confusingly, the Governor’s veto message contains factual errors about the bill, appearing to refer to the version of the bill in print prior to accepting the Department’s requested amendments nearly two months ago.”

AB 1111 was the only policy on the Governor's desk this year that addressed the increasing crises facing California’s small cannabis cultivators and their communities. Wholesale prices for cannabis are currently below the cost of production for most cultivators. Increasing numbers of small, independent cultivators are surrendering licenses and shuttering their businesses. Historic rural cannabis farming regions are experiencing grave economic decline. As corporate consolidation accelerates, genetic biodiversity within the regulated cannabis supply chain is diminishing. As a result, consumer access to high-quality craft cannabis products in the regulated market is quickly narrowing, contributing to an increasing number of patients and consumers turning to the illicit cannabis market to meet their needs.

“Craft cannabis farming and the medical cannabis movement is a part of the historic cultural fabric of my district,” said Assemblymember Gail Pellerin. “I appreciate the administration’s openness to considering a version of this policy next year. Our small cannabis cultivators are in urgent need of expanded market access. We look forward to working with the Legislature and the Governor to address this urgent need this coming year, before we lose this California legacy forever.”

About Origins Council
Origins Council was founded in 2019 as a California 501(c)(4) nonprofit education, research and policy advocacy organization, dedicated to sustainable rural economic development within cannabis producing regions. Origins Council currently represents nearly 800 members through its partnership with Trinity County Agriculture Alliance, Humboldt County Growers Alliance, Mendocino Cannabis Alliance, Nevada County Cannabis Alliance and Big Sur Farmers Association. Learn more at originscouncil.org.

Gretchen Giles
G2 Comms
gretchen@hellogretchen.com
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