California Governor Gavin Newsom has signed Assembly Bill 1775 into law, paving the way for cannabis cafes to operate legally in the state. Authored by Assemblymember Matt Haney (D-San Francisco), the bill allows cannabis businesses to serve non-cannabis food and beverages, as well as sell tickets for live performances.
The legislation, which received strong bipartisan support in both the State Senate and Assembly, is seen as a potential solution to reinvigorate urban centers still recovering from the impacts of the COVID-19 pandemic.
“Our downtowns are struggling, and new, innovative businesses, especially in hospitality, nightlife and the arts, are among the best ways to reinvigorate them. California should be excited for the jobs, culture, and tourism that cannabis cafes are going to bring to our state,” Haney said.
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This development comes as the legal cannabis industry faces stiff competition from the black market. Despite legal sales reaching $4 billion in 2020, illegal sales surpassed $8 billion in the same year, according to data from Haney’s office.
A similar bill was vetoed by Governor Newsom last year. The current version includes additional worker protections regarding secondhand smoke exposure and has garnered support from the United Commercial and Food Workers Union.
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