New cannabis cafe bill heads to governor’s desk

California is on the verge of a potential shift in its cannabis industry, as the state Legislature has passed a bill that could pave the way for cannabis cafes where patrons can enjoy both cannabis and a meal. The proposed legislation, Assembly Bill 1775, which now awaits Governor Gavin Newsom’s signature, would allow cities to authorize dispensaries to serve food and nonalcoholic drinks, and even host live entertainment, alongside the consumption of cannabis products.

Currently, some dispensaries in California offer on-site consumption lounges, but these are limited to selling prepackaged snacks and beverages. The new bill would expand this by permitting a more cafe-like atmosphere, akin to the cannabis-friendly coffee shops in Amsterdam, where patrons can consume marijuana in a social setting.

Assemblymember Matt Haney, the bill’s author, argues that this change could support the state’s legal cannabis market by providing businesses with new revenue opportunities. Haney has pointed out that the illegal market continues to thrive, while legal dispensaries struggle under heavy regulations and taxes.

Proponents of the bill, including the California Nightlife Association and California NORML, believe that current dispensary models fail to offer the social experience that many consumers are looking for, reducing dispensaries to transactional, pharmacy-like establishments.

However, the bill faces opposition from public health advocates who are concerned about the health risks associated with secondhand cannabis smoke. Groups like the American Heart Association argue that marijuana smoke contains harmful particulates that can exacerbate health conditions such as asthma and cardiovascular disease.

Governor Newsom previously vetoed a similar proposal, citing concerns about maintaining California’s smoke-free workplace laws. The current version of the bill includes new provisions aimed at addressing these concerns, such as allowing cities to impose ventilation standards and ensuring that cannabis cafe employees can use protective masks, with employers covering the costs.

West Hollywood has already pioneered a similar concept, with several cannabis cafes operating within its borders under a licensing system established six years ago. These establishments often work around current restrictions by partnering with nearby restaurants to provide fresh food, maintaining a separation between the food service and the dispensary operations.

If signed into law, AB 1775 could encourage other cities, including Los Angeles, to explore similar licensing systems, potentially transforming the landscape of California’s cannabis industry.