CA Lawmaker Proposes Bill to Legalize Cannabis Cafes

Assembly Member Matt Haney (D-San Francisco) has introduced a bill to allow cannabis retail businesses to operate kitchens, host events, and sell prepared foods and non-alcoholic beverages. Assembly Bill 374 would amend Section 26200 of the California Business and Professions Code to allow retailers to operate Amsterdam-style cannabis consumption lounges.

Currently, there are only a handful of consumption lounges statewide, and current laws require them to hire third-party vendors to provide food and beverages to their customers. The newly proposed law would make it easier for businesses to set up consumption lounges to serve food and coffee and host live music events.

The Los Angeles Times reports that Haney is responding to a struggling market for marijuana retailers who are “losing to the illegal cannabis industry” and need the laws to change in order to survive. Haney notes that Amsterdam’s thriving marijuana consumption lounges are major drivers of tourism to the Dutch city.

If this bill becomes law, cannabis retailers will have the opportunity to expand their businesses in exciting and lucrative ways. At Purdy & Bailey, LLP, we know how challenging it can be to run a small business in the cannabis industry and we are committed to staying up to date with the latest developments in this complex area of law. We are proud to be at the forefront of supporting cannabis businesses thrive in San Diego.