California Assembly passes bill allowing cannabis cafes

A bill that would allow Amsterdam-style cannabis cafes in California passed the state Assembly on Monday afternoon by a vote of 49-4 and heads to the Senate. But even if the upper house of the Legislature passes AB 1775, legalization remains far from a sure thing.

Gov. Gavin Newsom vetoed an earlier version of the bill in October, citing the state's long-standing smoke-free workplace protections.

The bill would authorize local jurisdictions to allow licensed cannabis retailers to prepare and sell foods and non-alcoholic beverages that do not contain cannabis. The bill would also allow cafes to host live music and other performances.

Under current state law, consumers can consume cannabis at a dispensary, but dispensaries cannot legally sell non-cannabis products, such as coffee and food, as is legal in Amsterdam.

California's symbolic position at the pinnacle of marijuana cultivation has long rivaled the Dutch capital, where cannabis cafes have been legal since the 1970s.

Assemblyman Matt Haney (D-San Francisco), who introduced the legislation, has framed it as a matter of justice. He maintains that the cafes would level the playing field for the legal, regulated and highly taxed marijuana industry in the state, allowing legitimate businesses to compete with black market sellers who do not operate under the same limitations.

“This is a bill that supports our legal small businesses that just want to diversify their businesses and do the right thing,” Haney said Monday in the Assembly. “The illegal market continues to grow and prosper, while our legal cannabis market is struggling.”

Haney cited the governor's previous veto and said he had been working to address Newsom's concerns through amendments to the bill. The new version would prohibit smoking or vaping cannabis in the “back of the house” of lounges, where food is prepared or stored, creating a separation between where people use cannabis and other work areas.

Instead of taking a forceful approach at the state level, the bill would leave the decision of whether to allow cannabis cafes up to local jurisdictions. If a jurisdiction decides to give the green light to lounges, it would have to come up with its own permitting processes and regulations.

West Hollywood implemented a licensing system several years ago, and a handful of cannabis lounges operate within the city's 1.89 square miles. West Hollywood businesses operate workarounds that separate food businesses, The Times previously reported.

There is no such licensing system in the city of Los Angeles.

The American Cancer Society Cancer Action Network, American Heart Association. and the American Lung Association. All have opposed the bill, raising concerns about the health effects of secondhand marijuana smoke. They argue that the bill would undo hard-fought labor protections “by recreating the harmful work environments of the past.”

The marijuana advocacy group Americans for Safe Access has argued that customers and employees would not face health risks due to the highly regulated nature of such establishments.

A spokesperson for Newsom declined to comment on the pending legislation.

Staff writer Nathan Solis contributed to this report.

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