Last week, California’s Governor Gavin Newsom rejected a proposal that aimed to permit cannabis cafes to serve marijuana, along with food and drinks, reminiscent of the well-known coffee shops in Amsterdam. The rejected proposal, Assembly Bill 374 (AB 374), had been approved by the California legislature the previous month and was initially presented by Democratic Assemblymember Matt Haney earlier in the year.
As it stands, the law in California prohibits cannabis consumption lounges from offering freshly made food. However, a recent rule modification does allow for the provision of prepackaged food and drinks, and customers can bring their own freshly prepared meals, albeit in a restricted manner. However, these lounges are not permitted to provide most non-infused products directly.
Had it been approved, Haney’s bill would have permitted the sale of freshly made food and beverages in these lounges, along with hosting live entertainment. In comparison, over 700 cannabis cafes in the Netherlands, similar to coffee shops, attract millions of visitors annually, as noted by Haney’s office. Adopting a similar model in California could have revitalized local businesses and attracted both tourists and residents.
“The interest in enjoying legal cannabis socially is evident. Many desire to do so while having a cup of coffee or a meal, or enjoying live music,” stated Haney. “There’s no valid reason, be it economic, health, or safety, for the state to prohibit this. If a licensed cannabis retailer wishes to sell coffee or a sandwich, we should permit cities to authorize this, rather than restricting these small enterprises.”
However, Governor Newsom declined to sign AB 374 into law on Saturday. While he acknowledged the potential for increased business opportunities and customer attraction, his veto message cited conflicts with existing California laws aiming to ensure smoke-free workplaces.
“The welfare and health of workers are of utmost importance. I urge the proposer to consider this concern in future proposals,” the governor remarked. “I cannot endorse this bill for this reason.”
Proponent Commits to Revised Proposal Next Year
In response to the veto, Haney expressed disappointment via social media, underscoring the necessity of the bill to bolster California’s regulated cannabis sector amidst ongoing challenges like elevated costs and the persistent presence of unregulated sellers.
“This bill was broadly regarded as an effort to create a more balanced environment for the legal cannabis industry, which is currently grappling with stiff competition from California’s unregulated cannabis sellers,” Haney elaborated. “The unregulated sale of cannabis is exceedingly profitable, with sellers opting to evade the costly regulatory measures and taxes. While legal cannabis sales hit $4 billion in 2020, it is estimated that illegal sales exceeded $8 billion.”
Haney reminded that the public had already approved smoking in certain business establishments covered by AB 374 and pledged to propose new legislation in the upcoming legislative session to legalize cannabis cafes.
“Californians have already endorsed the consumption of cannabis in specific public businesses. AB 374 merely sought to enable such establishments to offer coffee, food, and host live events,” Haney posted on X, formerly known as Twitter. “I respect the Governor’s focus on employee health and am keen to collaborate with his office and labor representatives to ensure we address this aspect in the reintroduced bill next year.”
OTHER NEWS: California Police Cannabis Policy, Recruitment Changes
