In certain parts of the U.S., you can buy a surprising number of things other than food from a drive-thru window: Guns in Texas, weddings in Nevada and margaritas in Florida, to name a few.

And if one Assembly bill becomes law, marijuana could be on drive-thru menus in California.

The state Senate’s committee on business, professions and economic development earlier this week passed a proposal that would allow licensed retailers to sell cannabis via drive-thru windows. Currently, cannabis retailers can provide curbside pickup services. But by also allowing drive-thrus, the legal market can gain a competitive edge over the illegal cannabis market, said Assemblymember Gail Pellerin, a Santa Cruz Democrat and bill author. 

Bill proponents say the measure would also improve access for people who have mobility issues.

• Annie Aubrey, owner of Chuck’s Wellness Center in Placerville, at a hearing Monday: “A significant portion of our customers rely on cannabis as medicine, including seniors, veterans, and individuals living with chronic conditions that affect mobility — exactly the population this regulated system is meant to serve.”

The California Narcotic Officers’ Association opposes the bill, arguing that it “prioritizes speed of sale over public safety.” Ryan Sherman, a lobbyist for the association, said drive-thrus make it harder for retailers to verify a customer’s identification — increasing the chances of illegal sales. It also makes it harder for sellers to see if customers are high or intoxicated behind the wheel.

The bill passed the 11-member committee with a mix of Democrats and Republicans voting for and against it, according to CalMatters’ Digital Democracy. In his opposition, GOP Sen. Roger Niello of Roseville tied his criticisms of the bill with the wider effects of legal cannabis in general, such as easier access for young people and health risks associated with cannabis use disorder.

• Niello: “We’re even seeing our current president now, advocating (the legalization) by downplaying the classification of marijuana at the federal level. We have seen significant negative consequences of this legalization both here as well as in other states. And I think it’s time for us to have a serious analysis of that.”

A proposal backed by Gov. Gavin Newsom to potentially steer billions of dollars in free pollution permits to oil companies is drawing ire from California Senate Democrats — and they’re cooking up their own plan to stop it.

As CalMatters’ Alejandro Lazo and Yue Stella Yu explain, state regulators are considering providing major companies as much as $4 billion in new free carbon emission permits — with half of those permits reserved for the fossil fuel industry. Under the proposal, revenue for state programs that come from carbon market auctions — such as ones earmarked for public transit, safe drinking water and affordable housing — could fall from about $4 billion annually to $2 billion, according to the Legislative Analyst’s Office.

Both Newsom and lawmakers last year agreed to fund transit, water and housing projects and reserved $1 billion at the Legislature’s disposal — so critics of the permit plan see it as Newsom backing out of that deal. Democratic senators are going through the state budget process to block it: They propose protecting the $1 billion lawmakers control, then steering as much as $2 billion to the transit, water and housing programs. Newsom’s favored projects — such as high-speed rail — would also be deprioritized in the budget.

The governor and the Legislature must reach a budget deal by June 30, but climate funding could be finalized as late as September because that funding isn’t beholden to the deadline. 

Read more.

From CalMatters economy reporter Levi Sumagaysay:

SpaceX shares will start trading on the Nasdaq stock exchange today in the biggest initial public offering ever. At the $135 a share that Elon Musk’s company has set, SpaceX should raise about $75 billion and be valued at nearly $1.8 trillion. 

The company makes rockets, Starlink satellites and is also involved in artificial intelligence, having bought Musk’s xAI earlier this year. SpaceX, which was founded in California in 2002 but moved its headquarters to Texas in 2024, continues to design and manufacture its rockets in Hawthorne, in Los Angeles County. 

Like others before it, this IPO will boost California tax revenue, but it’s “more unpredictable” to tell when and by how much, said Brian Uhler, an analyst in the Legislative Analyst’s Office. SpaceX employees have already paid income taxes on one type of stock because they vested on a schedule as opposed to on IPO day. What else comes the state’s way depends on what employees and investors decide to do with their stock-options windfalls afterward.

Accusing the agency of fraud, the Trump administration on Thursday said it would bar the Los Angeles Homeless Services Authority — L.A. County’s main homelessness agency — from accessing federal funds.  At risk is nearly $200 million providers rely on to help California’s largest homeless population. Read more from CalMatters’ Marisa Kendall.