In an exciting development, the California Assembly recently passed a bill legalising cannabis cafes. This promising legislation allows cannabis dispensaries to diversify their offerings by adding non-cannabis food and drinks to their menus, provided they receive approval from local authorities.
The bill, put forward by Assembly member Matt Haney (D), sailed through the chamber with a strong 59-9 vote last Wednesday and is now on its way to the Senate for further discussion.
The struggle of the legal cannabis industry
Assembly member Matt Haney voiced his concerns about the current struggles plaguing the legal cannabis industry during the session. According to Haney,
“The legal cannabis industry is struggling with issues such as over-saturation, high taxes, and a thriving black market. These problems are negatively affecting those cannabis businesses who abide by the rules and pay taxes.”
Haney believes this bill, AB 374, could help mitigate some of these challenges.
AB 374 brings cannabis cafes to California
Haney elaborated on the implications of the proposed bill, stating,
“AB 374 empowers local governments to authorize the preparation and sale of non-cannabis foods and soft drinks at licensed cannabis consumption lounges.”
However, he was quick to clarify that the bill does not sanction coffee shops to sell cannabis, but rather authorizes cannabis shops to sell coffee, pending approval from local governments.
Haney emphasized the importance of diversification for cannabis businesses, saying,
“It shouldn’t be illegal for an existing cannabis business to grow, thrive and create jobs by offering additional services like coffee or live jazz.”
Limitations and regulations
While the bill opens up new avenues for cannabis dispensaries, it maintains a few restrictions. It continues to prohibit the sale of alcoholic beverages at cannabis cafes, as well as the smoking of tobacco.
Also, the bill specifically authorizes live musical or other performances at the retailer or microbusiness premises, and allows ticket sales for these events.
The bill and its consistency with existing regulations
Retailers and micro-businesses would be allowed to serve freshly prepared food and drinks under the new legislation. However, the bill restricts the sale of prepackaged food to retailers, aligning with the regulations adopted by the state’s Department of Cannabis Control (DCC) in the previous year.
This legislation could help California businesses that have been finding workarounds to allow on-site consumption and food availability for guests.
While these businesses operate in a legal grey area, this bill aims to eliminate such ambiguity.
Haney emphasized the benefits this bill could bring, saying that:
“Ironically, as the law stands now, we require cannabis shops to only sell drugs. We believe that if these businesses want to move away from this model and sell items like muffins and coffee, they should be able to do that. This will support our small businesses, with local government autonomy.”
