California bill to legalize marijuana cafes is officially going to the Governor following final assembly vote

The governor of California has officially signed a bill that would legalize cannabis cafes, allowing dispensaries in California to serve non-cannabis foods and beverages at their locations if local approval is received.

The Assembly, in a 48-7 decision on Monday, voted to accept the changes made by the Senate a few days earlier. The bill now goes to the Governor. Gavin Newsom (D).

AB 374 allows local governments to allow cannabis lounges to sell soft drinks and non-cannabis food in their establishments. Smoking tobacco and the sale of alcohol beverages would remain prohibited in cannabis cafes.

The legislation also explicitly allows “live musical performances or other performances at the premises of retailers or microbusinesses licensed under this division, in areas where cannabis consumption is permitted, as well as the sale of tickets to those performances.”

The bill allows retailers and microbusinesses to sell freshly prepared food and beverages, but limits the sale of prepackaged foods to retailers. This is in line with the regulations adopted by the Department of Cannabis Control of the state late last year.

It was decided to revise the bill so that it would be clear that hemp-based drinks or food products are not “non-cannabis”. These items can still be sold in cafes. The bill now states that all non-cannabis products “shall not be displayed or stored together with any cannabis or cannabis products on the premises.”

The Cannabis Cafe Bill, which allows local governments to allow legal licensed cannabis retailers sell non-cannabis foods and beverages, has been passed out of the Legislature and is now on its way to the Governor. If he signs the bill, it will be law next year.

— Matt Haney (@MattHaneySF) September 11, 2023

California businesses have used workarounds that allow on-site food consumption, while still providing it to guests. But they have operated in a gray area by partnering with restaurants that are separately licensed and receive the profits.

Newsom has not publicly commented on the bill, but is a long-time supporter for cannabis legalization.

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Last week, lawmakers sent a bill to the governor that would legalize psychoedelics in adults over 21. It is not clear what his position is on this issue. He has long criticised the drug war but he vetoed last year a bill to create a pilot program for safe drug consumption in the state. This raises questions about his willingness and ability to support drug policy reforms outside the cannabis realm.

Recently, the Assembly Appropriations Committee approved a Senate passed bill intended to strengthen protections for employees who use cannabis outside of work. The committee adopted the technical amendments from Sen. Steven Bradford, (D), but it will be sent back to the Senate to get their approval if the Assembly approves it.

The bill would expand current employment protections that were enacted during the last session, which prohibit employers from penalizing workers who use cannabis according to state law while on the job.

State Attorney General Rob Bonta announced last month a new program aimed at curbing the illicit market. He also claimed that the high cannabis tax rates in the state are partly responsible for the continued illegal sales.

Documents obtained by Marijuana Moment reveal that Bonta’s office also sought input from local governments and cannabis industry groups in order to draft an opinion regarding the legal risks associated with allowing interstate marijuana commerce while federal prohibition continues.