By Shelby Huffaker, MPH | Chair, San Diego Chapter of Americans for Safe Access
2024 was a busy year for cannabis on all three levels of government: local, state, and national. Read on for a recap of the year and what to expect in 2025, with key action items included. Not on our monthly newsletter list? Sign up to make sure you never miss a beat!
Local
Out With the Old…
The County of San Diego awarded contracts to the Cannabis Social Equity Program Engineers (SEPE), a collaborative group of people and organizations working to implement the County’s Socially Equitable Cannabis Program (SECP). Members of the SEPE hosted numerous educational workshops throughout the year, later accepting, reviewing, and selecting qualifying applicants via a drawing conducted in September.
Funding for the Cannabis Social Equity and Economic Development (SEED) Plan was excluded from the City of San Diego’s budget for the 2024-2025 fiscal year. Mayor Todd Gloria’s office subsequently issued a letter officially notifying the state that the City would be returning the $882,839.85 it received in grant funding to implement the program.
The City of Santee began accepting cannabis retail permit applications. The application period is now closed and the review process is underway.
The City of Vista adopted numerous ordinances relating to cannabis in 2024. In February, the Vista City Council adopted the Cannabis Equity Assessment and later the Cannabis Social Equity Program Manual. Applications for the program are currently being accepted. Separately, in May, the Vista City Council adopted an ordinance to allow temporary cannabis events on private property, with Brengle Terrace Park identified as one possible location. Finally, the City Council voted to draft ballot language for a referendum that, if passed, would allow cannabis consumption lounges in the City.
The City of Carlsbad introduced and adopted the first multi-unit ban on smoking and vaping of tobacco and cannabis in the County. Read more about the unintended consequences of ordinances such as these.
In With the New…
From January to March 2025, members of the public are encouraged to review and provide feedback on the County of San Diego’s Draft Cannabis Program Environmental Impact Report (EIR). Required by the California Environmental Quality Act, the EIR provides an analysis of the potential environmental impacts of the County’s proposed cannabis program, issuing recommendations to “reduce significant environmental impacts.” After the review process, a final EIR will be prepared and presented to the County Board of Supervisors for approval. Your feedback and support will be critical for ensuring the success of the County’s cannabis social equity program and securing safe access for patients.
The City of Santee will select up to four cannabis retail permit applications, subject to a vote of approval by the City Council.
While the ballot initiative to amend Measure Z to allow for cannabis lounge permits in the City of Vista will not be presented to voters until 2026, advocates will need to work to build support for the referendum. Additionally, the City Council will identify and vote on whether or not to approve potential temporary cannabis event sites.
As the City of Escondido grapples with a structural budget deficit, there has been an increased interest in exploring a taxed cannabis program—particularly in light of the neighboring city of Vista’s record cannabis tax revenues. Currently, Escondido prohibits cannabis businesses within the city limits, but city officials are considering the possibility of creating a task force to introduce a ballot referendum for the 2026 election that would, if passed, legalize and tax cannabis sales in the city. As with Measure Z in Vista, advocates will need to work to build support for the referendum starting in 2025.
State
Out With the Old…
Numerous cannabis-related bills passed and failed during the 2024 California legislative session. Read more about these bills here. Notable successes include the passage of AB 2555, which extends provisions exempting donated medical cannabis products from taxation (i.e., compassionate cannabis donation programs) for an additional 5 years, and SB 1059, which ends the practice of including the cannabis excise tax in jurisdictions’ definitions of taxable expenses (i.e., the “tax-on-tax”).
In September, Governor Gavin Newsom issued emergency regulations prohibiting the sale of hemp products with any detectable level of THC, including hemp-derived CBD products with naturally occurring THC. State officials are already taking aggressive action to confiscate products found to be in violation of these terms. Read ASA’s letter to the Governor’s Office outlining concerns about these emergency regulations.
In With the New…
In 2022, California amended its tax law to eliminate the cultivation tax on cannabis products entering the commercial market with the caveat that the cannabis excise tax would be adjusted to offset the loss in revenue. As a result, the excise tax is expected to increase from 15% to 19% starting in July of 2025 unless action is taken by legislators. A tax increase of even 4% could be potentially devastating to patients, who already struggle with the high cost of their medicine, and small and mid-sized cannabis businesses, which are fighting to stay afloat and remain competitive against large corporations and the unregulated market. In order to prevent this tax increase, your state lawmakers (lookup tool) will need to hear from patients and other stakeholders ASAP.
Federal
Out With the Old…
Under the direction of President Joe Biden and following a recommendation issued by the U.S. Department of Health and Human Services to reschedule cannabis from Schedule I to Schedule III under the Controlled Substances Act, the U.S. Department of Justice (DOJ) announced in May that they had initiated their formal rescheduling review process. The Drug Enforcement Agency, which is housed under the DOJ, subsequently initiated the review process, which included a 60-day public comment period. The DEA holds the final authority to reschedule cannabis under the CSA.
Over the summer, the House Appropriations Committee passed a version of the Commerce, Justice, Science, and Related Agencies (CJS) appropriations bill that would block rescheduling efforts and, for the first time since 2014, allow the federal government to interfere in state-level cannabis programs—with double the penalties. Read here to learn more about the bill.
In September, Senator Ron Wyden (OR) introduced the Cannabinoid Safety and Regulation Act (CRSA). Like the Marijuana Opportunity Reinvestment and Expungement (MORE) Act and the Cannabis Administration and Opportunity Act (CAOA), this bill would place cannabis and cannabinoid products under the purview of the FDA. ASA is concerned about the implications of this provision because while cannabis is different from tobacco in terms of potential harms and medicinal benefits, by assigning oversight to the FDA, it would be treated similarly from a regulatory perspective. This could likely result in significant restrictions on the types of products available to consumers, ultimately harming patients and undermining state-level programs. Learn more about the limitations of the FDA and cannabis in ASA’s Post-Election Debrief slides.
In With the New…
The next step of the rescheduling process is for the DEA to hold a hearing featuring key witnesses. This hearing was originally scheduled for December but has since been postponed until January, likely due to numerous lawsuits challenging the witness list selection process (the original December 2 hearing will now serve only as a preliminary hearing to confirm the key witness list, sort out logistical details, etc.). Read more about the rescheduling delay and what it means for patients.
The CJS Appropriations Bill still needs approval from the Senate before being enacted into law. However, given the new Republican leadership and the fact that 25 Senators signed a letter urging the DEA to reject efforts to reschedule cannabis earlier this year, there is significant concern that the House’s amendments may have a strong chance of passing. The anti-cannabis lobby is powerful and legislators desperately need to hear from patients like you. Click here to send a letter to your representatives telling them to prioritize patients!
Members of the 118th Congress are currently hard at work crafting the 2024 Farm Bill. One key provision (Sec. 1639) is language amending the definition of hemp to include only cannabinoids that are naturally occurring and non-intoxicating.
Instead of bills that place cannabis and cannabinoid products under the purview of the FDA, ASA has drafted a legislative framework that would create a new Office of Medical Cannabis and Cannabinoid Control, housed under the Department of Health and Human Services. This bill also includes provisions to create oversight mechanisms for hemp-derived cannabinoid products, advance medical cannabis research and medical professional education, support product development, and protect patients’ rights. Read more about the Medical Cannabis and Cannabinoid Act and urge your legislators to sign on.
