California is on the verge of a potential shift in its cannabis industry, as Governor Gavin Newsom considers signing A.B. 1111, a bill that would allow small-scale cannabis producers to sell directly to consumers at approved cannabis events. These temporary events, including celebrations like 4/20, could see small farmers selling alongside major cannabis retailers if the bill becomes law.
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The legislation, passed by the state legislature, would allow cannabis sales and on-site consumption at "cannabis events" under the oversight of a DCC-licensed retailer and local jurisdiction approval. Importantly, consumption areas would be separate from other customer traffic.
The bill is tailored to support small cannabis farmers. Starting in January 2026, a special license will be offered to cultivators with operations smaller than 10,000 square feet, with retail sales capped at $175,000 per year. The cap will be reevaluated in 2027. These provisions are designed to help struggling small growers, who have faced financial challenges due to overproduction and competition with larger retailers.
Supporters of A.B. 1111, including advocacy groups like the Origins Council and California NORML, argue that this bill is crucial for small farmers and rural economies. They stress that it would allow farmers to sell their cannabis directly to consumers, fostering a closer connection between producers and buyers—similar to the direct-sales model used by small wineries.
Opponents of the bill, such as medical marijuana companies and larger retailers, may be concerned about the impact on their market share. However, advocates argue that the law will provide consumers with more diverse and higher-quality products, while supporting small businesses and promoting cannabis-related agritourism in rural areas.
If the bill is signed, California would become the largest state to embrace direct-to-consumer sales at cannabis events, a model that other states, like New York and Oregon, have considered but not fully adopted. This move could set a precedent for other states to follow, potentially reshaping the cannabis retail landscape across the U.S.
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