Last week, the California Cannabis Industry Association (CCIA) applauded recent moves by Governor Gavin Newsom in signing Senate Bill 51 and vetoing Assembly Bill 1207. 

SB 51 extends the cannabis provisional licensing program for an additional seven years. The new end date is Jan. 1, 2031 for the designated social equity applicants and licensees that qualify for an extension. The bill also gives the Department of Cannabis Control (DCC) the authority to issue provisional licenses to qualified social equity operators seeking a commercial cannabis retail license. The DCC can reissue these provisional licenses, if people are showing real progress toward their annual permits. 

“CCIA firmly believes that SB 51’s narrow extension of the provisional license program for social equity retail applicants is paramount in realizing the promises of Prop. 64 and aligns seamlessly with CCIA’s longstanding vision of broadening legal retail access throughout California,” said Yvette McDowell, CCIA board member, co-chair of the association’s Diversity, Inclusion & Social Equity (DISE) Committee, and founder of YMcDowell & Associates.

Had the bill not passed, it would have been pretty tricky to convince people to jump on the equity bandwagon given the DCC would have only been able to renew cannabis licenses through the end of 2024, with the program completely sunsetting on Jan. 1, 2026. The CCIA noted that timeline risked depriving social equity operators of a chance to participate in the legal cannabis marketplace.

“With the signing of SB 51, California reaffirms its commitment to championing equity and justice in the cannabis industry. Extending the provisional licensing program will continue to help remove barriers, level the playing field, and ensure that the promise of Prop. 64 is realized for every Californian,” said McDowell who went on to shoutouts the bill’s author. “We thank the author, Senator Steve Bradford, for championing this critical legislation, and the governor for his signature. SB 51 embodies our unwavering belief in a more inclusive, fair, and equitable cannabis industry.” 

Once you’re able to stay open, you’re going to want to be able to actually move product. A critical component to that in the current flooded cannabis marketplace is effective branding to lure new consumers to your products. Had AB 1207 passed, it would have become very difficult for brands to stand out in the marketplace.

The bills author, Assemblymember Jaqui Irwin, explained her thought process earlier this year before spending the summer pushing the bill all the way to the governor’s desk.

“Since the passage of Proposition 64, pediatric exposures to cannabis have increased exponentially,” Irwin was quoted as saying on her website. “These exposures are heavily influenced by the use of features on cannabis product packaging that are explicitly attractive to children. Children who unintentionally consume cannabis consistently require poison control treatment, and in many cases, they can also expose their fellow elementary and middle school peers to cannabis.”

Irwin also argued she expected to see more dangers revealed about cannabis once more data comes out.

CCIA was pleased the governor moved to veto the bill. At its core, it would have defined aspects of cannabis packaging, labeling, advertising and marketing as attractive to children. CCIA noted that the cannabis industry shares the same goal of preventing youth access. But it argues its vague terms would have forced many licensed cannabis companies to throw out millions of dollars of existing packaging materials, creating unnecessary waste and straining an industry already facing considerable challenges. 

“The bill’s universal prohibition on imagery — humans, animals, vegetables, fruits — would especially impede social equity businesses from featuring diverse representation in their marketing and advertising,” CCIA said when announcing the bill was vetoed. 

A CCIA- backed bill, Senate Bill 540, mandates the DCC to routinely review cannabis labeling standards. In collaboration with the California Department of Public Health, the DCC also will develop a brochure advocating responsible cannabis consumption.

“Instead of a sweeping ban, SB 540 promotes a dynamic approach, enabling the DCC to make evidence-based decisions on packaging and labeling while also providing guidance on responsible consumption and potential underage misuse,” said Amy O’Gorman Jenkins, CCIA legislative advocate and president of Precision Advocacy.


Advertising disclosure: We may receive compensation for some of the links in our stories. Thank you for supporting LA Weekly and our advertisers.