A new California law allowing marijuana cafes officially took effect on Wednesday, authorizing local governments throughout the state to allow cannabis retailers to expand their services. And certain businesses are already leveraging the policy change.
Gov. Gavin Newsom (D) signed a bill from Assemblymember Matt Haney (D) into law in September. But while local governments can now start the process of allowing the Amsterdam-like cafes, it’s expected to take months before most jurisdictions have rules in place to conform to the state law.
Overall, the legislation will allow on-site marijuana consumption at licensed businesses to also offer non-cannabis food and non-alcoholic drinks and host live events such as concerts if they get permission from their local government.
Newsom vetoed a prior version of Haney’s cannabis cafe bill, saying that while he appreciated that the intent was to “provide cannabis retailers with increased business opportunities and an avenue to attract new customers,” he felt “concerned this bill could undermine California’s long-standing smoke-free workplace protections.”
To that end, the measure as enacted contains changes to create separation between public consumption spaces and back rooms of businesses where food is prepared or stored in order to better protect the health of workers in line with the governor’s concerns.
“I commend the author for incorporating additional safeguards, such as expressly protecting employees discretion to wear a mask for respiration, paid for at the expense of the employer, and requiring employees to receive additional guidance on the risks of secondhand cannabis smoke,” Newsom said in a signing statement in September.
The law makes explicitly clear that hemp-based food items or drinks are not considered “non-cannabis” products that could be sold at the cafes. It also says that non-cannabis items “shall be stored and displayed separately and distinctly from all cannabis and cannabis products present on the premises.”
The legislation will also allow live musical or other performances on the premises of a cannabis retailer in areas where on-site consumption is allowed.
There have been examples of California businesses that have found workarounds to permit on-site consumption while making food available to guests—but they’ve operated in a grey area, partnering with separately licensed restaurants that receive the profits.
The expectation is that—because those cities such as Los Angeles and San Francisco have already established certain regulations around consumption lounges, including ventilation requirements—they may be quicker to the draw to open up the additional services.