California Governor Gavin Newsom has signed a landmark bill legalizing Amsterdam-style marijuana cafes, marking a major development in the state’s cannabis industry. Assembly Bill 1775, which passed with overwhelming support in the legislature, allows licensed cannabis lounges to serve non-cannabis-infused food, drinks, and host live entertainment. The law also permits the sale of tickets for events like concerts at these venues, as long as local jurisdictions approve.
This legislation is a big shift from previous regulations. Prior to the bill, cannabis consumption lounges could only offer prepackaged food and beverages. Now, with freshly prepared food and live performances allowed, the model mirrors the famous cannabis cafes in the Netherlands. Proponents of the bill argue that it enhances the customer experience while supporting the state’s legal cannabis market, which has faced challenges from unregulated sources and high taxation.
Governor Newsom initially vetoed a similar bill in 2023, citing concerns about workplace safety for employees in cannabis lounges. However, the new version of the bill addresses those issues by including protections like allowing employees to wear masks at their employer’s expense to safeguard against secondhand smoke exposure. The new version of the bill also creates a separation between public consumption spaces and back rooms of businesses where food is prepared or stored. The law is set to go into effect in 2025, giving local governments time to create their own regulations and permitting processes.
This move is seen as a potential game-changer for California’s cannabis industry, which has been pushing for more flexible and consumer-friendly options to boost legal sales. Advocates hope it will help cannabis businesses diversify their offerings and compete with the state’s robust illicit market.
If you have any questions regarding how this new law impacts your business, please contact us at: info@mnklawyers.com.
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