California Governor Gavin Newsom has signed a passel of bills affecting the cannabis industry, his office announced on Saturday. Among the legislation that is now law is AB 37, a proposal sponsored by Democrat member of the California House Reggie Jones-Sawyer that will allow cannabis companies to make tax deductions.
AB 37 requires that eligible companies file their taxes as sole proprietors or partnerships. A similar bill was vetoed last year by former Governor Jerry Brown.
At the federal level, such write-offs depart from official Internal Revenue Service policy. But Newsom showed he had little problem with that conflict—despite the fact that on the same day, he announced that he had “begrudgingly” vetoed SB 305, which would have legalized medical cannabis treatment for terminally ill patients at California health care facilities.
Of that proposed legislation, Newsom wrote in a veto message, “This bill would create significant conflicts between federal and state laws that cannot be taken lightly.” In his statement, he suggested that such institutions could lose their federal funding were they to allow patients to use medical cannabis, even though he stated that he finds the federal government’s classification of cannabis as a Schedule I drug (and therefore devoid