California’s groundbreaking cannabis compassion program, established under Senate Bill 34 (SB 34), has officially been extended, ensuring continued access to medicinal cannabis for low-income patients. Originally passed in 2019 as the Dennis Peron and Brownie Mary Act, SB 34 allowed licensed cannabis businesses to donate medicinal cannabis to qualified patients without incurring state excise and use taxes. However, this vital exemption was set to expire on March 1, 2025, a deadline that had many in the cannabis advocacy community concerned about the future of compassionate care programs.
Thanks to the passage of Assembly Bill 2555 (AB 2555), the tax exemption for donated medicinal cannabis products will now remain in place until January 1, 2030. This legislative update provides a much-needed extension to the compassionate care movement, allowing dispensaries, cultivators, and manufacturers to continue offering free or low-cost cannabis to patients facing financial hardship.
Why SB 34 Matters
SB 34 was designed to correct a major flaw in California’s cannabis regulations that unintentionally penalized compassion programs. Prior to its enactment, businesses that donated cannabis to patients were still required to pay state taxes on the donated products, making it financially unsustainable for many companies to participate. By eliminating these tax burdens, SB 34 revitalized compassionate care initiatives and ensured that patients with serious medical conditions could access the relief they needed.
With the new extension under AB 2555, compassionate care programs will have five additional years of regulatory support to continue serving communities most in need. The extension is a win for patients, advocacy groups, and cannabis businesses that have long championed the need for affordable and accessible medicinal cannabis.
The Impact of AB 2555
The extension of SB 34’s tax exemption provides several key benefits:
- Sustained Patient Access: Many low-income patients depend on these donations for relief from chronic pain, cancer treatment side effects, PTSD, and other conditions.
- Business Participation: Licensed cannabis companies can continue to support patients without the financial strain of taxes on donated products.
- Advocacy Success: This extension highlights the power of community-driven advocacy in shaping cannabis policy for the better.
What’s Next for Compassionate Cannabis in California?
The extension of SB-34 was in large part due to California NORML’s tireless efforts in Sacramento and all over the state.
While the extension is a victory, advocates continue to push for permanent solutions to ensure compassionate cannabis access is not subject to recurring expiration dates. Organizations such as Americans for Safe Access, Cannabis Nurses Network, and the Ryan’s Law Foundation remain committed to expanding and protecting patient rights in California.
As we move toward 2030, the cannabis industry and advocacy groups will need to remain active in their pursuits to ensure that compassion remains a cornerstone of California’s cannabis landscape. For now, however, the passage of AB 2555 is a reason to celebrate because it’s a reaffirmation that cannabis is medicine, and access is paramount.
How You Can Support Compassion Programs
If you’re a business, patient, or advocate looking to get involved in compassionate care programs, consider:
- Supporting advocacy groups that fight for patient access.
- Partnering with dispensaries that participate in donation programs.
- Contacting your local representatives to ensure future legislative support.
California led the legalization movement in 1996 with the passage of Proposition 215. The Golden State remains a pioneer in compassionate use, and with this extension, the state continues to set an example for the rest of the country.
Navy veteran JM Balbuena is an award-winning author, filmmaker, advocate, and entrepreneur committed to empowering aspiring leaders in the legal cannabis space. Her debut book, The Successful Canna-preneur, earned her “Cannabis Educator of the Year” (2021 Las Vegas Cannabis Awards) and inclusion in The New Latina’s “100 Latinas Shaping The World.” In June 2024, JM published Green Renaissance, exploring cannabis culture, history, and its potential for equity and economic growth, cementing her status as a thought leader in the industry. Find out more about JB Balbuena here.
