California: Market and legal data analysis of the cannabis sector

26th January 2024: US - California: The Senate has failed to override a veto of Senate Bill (SB) 58, thus causing the bill to fail. SB 58 was vetoed by governor Gavin Newsom in October and would have decriminalised the possession of certain psychedelic substances by adults (21+).
11th December 2023: US - California: The City of San Diego's Cannabis Business Division has sent warning letters to vendors that it believes are selling illegal hemp products, such as delta-8 THC products, synthetically derived products, and hemp products intended for inhalation. The letter warns that if such products are not removed from shelves by the end of December, the city will take enforcement action.
16th October 2023: US - California: A group of California cannabis dispensaries is suing other dispensaries and manufacturers of intoxicating hemp-derived cannabinoid (IHDC) products to prevent them from selling IHDC products in the state, press reports. The plaintiffs claim that the sale of many IHDC products is illegal under California law because hemp products may not have more than 0.3% of all THC isomers, and inhalable products are also prohibited. The plaintiffs also claim that calling such products “legal cannabis” on their packaging is false advertisement.
9th October 2023: US - California: Governor Gavin Newsom has vetoed Senate Bill (SB) 58, which would have decriminalised the possession of certain psychedelic substances like psilocybin for personal use by adults (21+) and convened a working group to regulate the facilitated, therapeutic use of such substances. Despite the veto, Newsom expressed support for the therapeutic use of psychedelics and stated: “I urge the legislature to send me legislation next year that includes therapeutic guidelines.”
9th October 2023: US - California: Governor Gavin Newsom has vetoed Assembly Bill (AB) 1207, which would have prohibited the use of images of cartoons, real or fictitious humans, fictitious animals or creatures, and fruits or vegetables in cannabis packaging or marketing. “While I deeply appreciate and agree with the author’s intent, I am concerned that the definition of ‘attractive to children’ used in this bill is overly broad,” Newsom said.
9th October 2023: US - California: Governor Gavin Newsom has vetoed Assembly Bill (AB) 374, which would have permitted “cannabis cafés” by allowing local jurisdictions to allow non-cannabis food and drinks to be served in permitted cannabis consumption locations and allow tickets to be sold for live entertainment in such locations. “I appreciate the author’s intent to provide cannabis retailers with increased business opportunities and an avenue to attract new customers. However, I am concerned this bill could undermine California’s long-standing smoke-free workplace protections,” Newsom said. Despite the veto, current law allows for local jurisdictions to allow consumption on the premises of licensed retailers or microbusinesses.
2nd October 2023: US - California: Assembly Bill (AB) 623 has been signed into law by governor Gavin Newsom. AB 623 requires the Department of Cannabis Control to establish regulations to adjust testing variances for edible cannabis products that include less than 5 mg of total THC.
14th September 2023: US - California: Senate Bill (SB) 152 was signed into law by governor Gavin Newsom. SB 152 creates two new types of cannabis licence: cannabis event organiser, and processor. A cannabis event organiser is defined as “a person authorised to plan and organise temporary cannabis events”, while a processor is defined as “a person authorised to engage in only trimming, drying, curing, grading, packaging and labelling of cannabis and non-manufactured cannabis products”.
12th September 2023: US - California: California attorney general Rob Bonta has filed lawsuits against nine retailers of inhalable hemp products. “I want to be clear: the sales of industrial hemp products that do not comply with California law and the illegal sale of inhalable hemp in California will not be tolerated,” said Bonta. Smokable hemp flower and hemp-derived vaping products are prohibited under California law.
12th September 2023: US - California: Assembly Bill (AB) 374, which would essentially allow cannabis cafés in localities that choose to permit them, has been passed by the Senate. It was amended in the Senate, but the Assembly has consented to the amendments so the bill now heads to the governor. AB 374 would specifically allow for the preparation and sale of non-cannabis food and non-alcoholic beverages by cannabis retailers or micro businesses, as long as they complied with the California Retail Food Code, as well as hosting and selling tickets for live musical or other performances.
31st August 2023: US - California: California attorney general Rob Bonta announced the first partnership with local authorities as part of the California Department of Justice’s Cannabis Administrative Prosecutor Program (CAPP), which aims to take various enforcement actions against illegal cannabis operations. The City of Fresno becomes the first locality to join the CAPP to take advantage of state resources to tackle illegal cannabis operations through administrative enforcement and nuisance abatement proceedings. “Our partnership is aimed at assisting the local legitimate cannabis industry and help grow the Fresno’s tax base," Fresno City attorney Andrew Janz stated.

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