Bill to Legalize Marijuana Cafes Vetoed by California Governor

A bill to legalize marijuana cafes throughout California has been vetoed by Governor Gavin Newsom.

Assembly Bill 374 would have legalized Amsterdam-style marijuana cafes where marijuana could be purchased and consumed alongside other food and drink items. It has now been vetoed by Governor Newsom. However, given it was passed by the legislature with more than 2/3rds support (34 to 3 in the Senate and 66 to 9 in the Assembly), it’s unclear if lawmakers will seek to overturn the veto.

“This bill would allow local jurisdictions to permit certain cannabis retailers to prepare and sell food or drinks that do not contain cannabis, as well as host and sell tickets to live events at their licensed premises”, said Governor Newsom in a veto letter. “I appreciate the author’s intent to provide cannabis retailers with increased business opportunities and an avenue to attract new customers.”

He continues; “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.”

AB 374 would have allowed “for the preparation or sale of noncannabis food or beverage products, as specified, by a licensed retailer or microbusiness in the area where the consumption of cannabis is allowed”. The measure would “allow for the sale of prepackaged, noncannabis-infused, nonalcoholic food and beverages by a licensed retailer”, and it would also allow them to “sell tickets for, live musical or other performances where the consumption of cannabis is allowed.”

“Cannabis cafes in the Netherlands capitalize on the social experience of cannabis by offering coffee, food, and live music, all of those opportunities are currently illegal under California law,” says Assembly Member Matt Haney, the bill’s prime sponsor. “AB 374 will allow struggling cannabis businesses to diversity away from the marijuana-only ‘dispensary’ model and bring much needed tourist dollars into empty downtowns.”

Haney says “Lots of people want to enjoy legal cannabis in the company of others. And many people want to do that while sipping coffee, eating a scone, or listening to music. There’s absolutely no good reason from an economic, health, or safety standpoint that the state should make that illegal.”

Under current California law cannabis consumption lounges are not allowed to sell freshly prepared food, a rule that many call arbitrary and unnecessary. A November 2022 rules change allowed lounges to offer prepackaged food and beverages on a limited basis, but nothing freshly made or beverages ready to be consumed without opening.

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