California Lawmaker Reintroduces Cannabis Café Legislation

A California lawmaker reintroduced legislation Jan. 3 to establish cannabis cafés in the Golden State after Gov. Gavin Newsom vetoed a similar proposal last year.

Assemblyman Matt Haney of San Francisco filed Assembly Bill 1775 to legalize businesses where customers can enjoy food, nonalcoholic beverages and entertainment alongside cannabis.

Current law permits customers to consume cannabis on-site in licensed consumption lounges, but it remains illegal for dispensaries to sell non-cannabis products, including food and beverages.

Haney initially introduced legislation to establish cannabis cafés in February 2023. That bill, Assembly Bill 374, was largely identical to A.B. 1775. The California Assembly approved A.B. 374 in a 64-9 vote in June before the Senate passed it in a 33-3 vote in September.

Despite broad support for the proposal in the California Legislature, Newsom vetoed A.B. 374 in October, citing concerns that the legislation would weaken the state’s existing protections that ensure smoke-free workplaces.

“I appreciate the author’s intent to provide cannabis retailers with increased business opportunities and an avenue to attract new customers,” Newsom said in his veto message. “However, I am concerned this bill could undermine California’s long-standing smoke-free workplace protections. Protecting the health and safety of workers is paramount. I encourage the author to address this concern in subsequent legislation.”

Following Newsom’s veto, Haney vowed to reintroduce the bill this year and noted his intent to respect smoke-free workplace protections, according to The San Francisco Standard.

Haney told the news outlet that A.B. 1775 will eventually be amended to address Newsom’s concerns about workplace safety, “which will be worked out in the coming months.”

“[Gov. Newsom’s] office let me know they believe there is a path forward,” Haney told The San Francisco Standard. “We are in conversation with his departments about what exactly that will include.”

Haney also said that San Francisco already has regulations for smoking lounges that require the separation of smoking and other working areas (i.e., kitchens), as well as ventilation requirements for such facilities.

“To be clear, we’re not saying that coffee shops should be allowed to sell cannabis; we’re saying that cannabis shops should be allowed to sell coffee,” Haney told The San Francisco Standard. “It shouldn’t be illegal for an existing cannabis business that already allows on-site smoking to move away from only selling marijuana and instead have the opportunity to grow and create jobs by offering coffee or live jazz.”