MENDOCINO CO., 9/6/24 – Two new bills are sitting on Governor Gavin Newsom’s desk that could impact the cannabis industry in Mendocino County, both with the hopes of elevating cannabis to the level of California’s famed fine wine and farm-to-table cuisine.
The first is AB 1111, which will allow farmers with small cannabis farms to apply for licenses to sell their cannabis and cannabis products at temporary events. The bill defines these events as “trade fairs where cannabis businesses can showcase their products and services and consumers can buy and consume cannabis.” The bill was inspired by the California State Fair, where small producers can sell their product onsite.
According to State Assemblymember Gail Pellerin (D-Santa Cruz), who authored AB 1111, this bill will bolster small craft cannabis producers, treating their products more like small production wine or coffee. Pellerin says that small cannabis farmers and producers are “struggling to compete against better-resourced competitors.”
“Enabling small producers to sell their own products at licensed cannabis events would support the development of a craft cannabis market in California and facilitate sustainable economic development in cannabis producing regions,” Pellerin says.
Supporters of the bill, including the Mendocino Producers Guild, the Emerald Cup, and the Mendocino County Cannabis Alliance, believe AB 1111 will lead to small producers re-establishing relationships with consumers that would lead to a niche market of sought- after small-batch cannabis, such as occurs with cult wines found in notable winemaking regions like Napa Valley.
“This is the first piece of legislation to allow for direct-to-consumer sales for our cultivators,” says Steve Amato, president of the Mendocino Cannabis Alliance. “Although sales at events may not be the magic bullet for saving cultivators from the difficulties of the current market, it is the first step in the right direction for assistance. It allows for an easier path for participation at events and allows for much more marketing opportunities without having to be under the banner of a particular retailer.”
The bill was opposed by the United Cannabis Business Association (UCBA), a special interest group, which lobbies on behalf of cannabis retailers, cultivators, distributors, manufacturers and laboratories. UCBA claims AB 1111 will not expand market access, will cut out the supply chain, and impact brick and mortar cannabis retailers waiting for licensing by allowing small producers to skip the line. The opposition is moot now, given the bill passed the state assembly overwhelmingly.
“This bill is an exciting step forward,” says Casey O’Neill, a Laytonville farmer and owner of Happy Day Farms, which grows produce for market as well as cannabis. “I long for a future when cannabis can be sold along with vegetables on my farmers’ market table. The regulatory burdens are still too high, and we have a long way to go towards full normalization, but this is a critical step forward.”
The second bill is AB 1775, inspired by the “coffee shop” culture of Amsterdam, where customers can smoke a joint while nibbling on a burger and listening to live music all in the same venue. AB 1775 will allow existing cannabis retailers to transform from retail dispensaries to what bill author State Assemblymember Matt Haney (D-San Francisco) describes as “community-style cannabis cafés.”
The bill will allow retailers to sell non-cannabis-infused food, nonalcoholic beverages and offer live music events and other performances. Retailers would not be allowed to sell alcohol or tobacco. The areas, also called “consumption lounges” in the bill, must be out of sight from the public and only accessible to those 21 and over.
Haney believes that AB 1775, if passed, will be one answer to the economic challenges faced by small cannabis retailers. “Issues like over-saturation, high taxes, and the thriving illicit market are hurting cannabis businesses who follow the rules and pay taxes,” he says. “While consuming cannabis onsite is technically legal in California, selling non-cannabis-infused products is not. AB 1775 legalizes cannabis cafes by allowing the sale of non-cannabis food and soft drink, allowing small cannabis retailers to diversify their business and move away from the limiting dispensary model.”
The biggest opposition to AB 1775 was from American Cancer Society Cancer Action Network, the American Heart Association, and the American Lung Association, which cited the dangers of secondhand smoke. In 2023, Haney introduced a similar bill, which also passed the legislature but failed to be signed into law. Newsom vetoed it, citing concerns about “California’s long-standing smoke-free workplace protections.” This means the future of AB 1775 is less assured than AB 1111.
“Both [AB 1111 and AB 1775] are very much needed for the economic viability,” says Mendocino County Supervisor John Haschak, whose District 3 includes the county’s largest concentration of cannabis farms. “The county has been very supportive, especially of AB 1111, for a long time. These [treat] cannabis like how wine and other alcoholic products are treated. We are encouraging the governor to sign these bills.”
Governor Newsom has until September 30 to sign the bills into law.
Those looking to learn more about AB 1111 are invited to attend a webinar at 3:30 p.m. on Tuesday hosted by the Origins Council, Supernova Women and the Equity Trade Network. Registration is free via this link.
The Mendocino Voice reached out to three local cannabis dispensaries regarding these measures and did not hear back by deadline.