Why Governor Newsom Should Veto AB 1207: An Analysis

The Industry’s Plea to Governor Newsom: Veto AB 1207, the Misguided Cannabis Labeling Bill

Introduction

California’s legal cannabis operators are at a tipping point as Assembly Bill 1207 sits on Governor Gavin Newsom’s desk. This controversial bill proposes stringent labeling and packaging restrictions that could have far-reaching implications on the state’s legalized market.

Challenges for Established Brands

The bill’s sweeping restrictions on what is deemed “attractive to children” could force businesses to revamp years of brand identity and design, adding unnecessary financial burdens. The threat extends to existing logos, packaging, and even digital promotions.

If Gov. Gavin Newsom signs AB 1207 in 2023, this label from Sunbright Gardens in Mendocino County would be banned. (Courtesy photo)

Operational Hurdles and Environmental Concerns

AB 1207 stipulates that edible cannabis products contain only one serving per package. This contradicts existing regulations that allow multiple servings, complete with clear dosage and serving size information. The result? A surge in packaging waste without clear evidence of its impact on limiting minors’ consumption.

Limits on Product Differentiation

The bill restricts the use of natural or artificial coloring in certain edible cannabis products. This limitation could hamper a business’s ability to distinguish itself from the illicit market, potentially limiting the range of products offered by licensed operators.

The Question of Public Safety

Critics argue that AB 1207’s restrictions are impractical to enforce on unlicensed sellers, essentially rewarding illegal operators who don’t abide by such limitations. A collective statement from various industry associations underscores that the bill may “exacerbate public safety issues” rather than improve them.

Data Gaps and Unintended Consequences

The majority of data regarding upticks in emergency room visits or youth use of cannabis do not distinguish between legal and illegal products. AB 1207’s proponents have yet to demonstrate that these incidents are tied to legally produced cannabis, raising questions about the bill’s efficacy.

Governor Newsom’s Crucial Role

Given widespread industry opposition, the onus is now on Governor Newsom to make a defining decision. A veto would not only preserve the competitive edge of legal cannabis operators but also indicate the state’s commitment to an equitable cannabis market. It would serve as a huge victory for the struggling legal sector, allowing it to compete more effectively against illicit operators.

Conclusion

AB 1207, while well-intentioned, could cause more harm than good. The bill’s wide range of restrictions poses challenges for legal operators and could inadvertently empower the unlicensed market. All eyes are now on Governor Newsom: his decision will be a significant indicator of California’s commitment to fostering a successful, compliant, and safe cannabis industry.