Amsterdam-style cannabis cafes legalized in California after Newsom signs bill

Cannabis industry expects reclassification of marijuana by Justice Dept. to help business

Cannabis cafes offering food, coffee and live entertainment will soon become reality in California, after Gov. Gavin Newsom signed a bill legalizing the establishments popularized in Amsterdam.

Newsom signed Assembly Bill 1775 by Asm. Matt Haney (D-San Francisco), which authorizes cannabis businesses to prepare and sell non-cannabis foods and beverages along with selling tickets to live performances.

Before heading to the governor's desk, the bill was approved by legislators by a wide margin, including a final vote of 30-7 in the State Senate and a 63-5 vote in the Assembly.

"Lots of people want to enjoy legal cannabis in the company of others," Haney said in a statement, "And many people want to do that while sipping coffee, eating a sandwich, or listening to music. That is now finally legal in California and there's no doubt that cannabis cafes will bring massive economic, cultural and creative opportunities and benefits to our state."

Legalization of cafes comes as the legal cannabis industry faces challenges as it competes with the black market. According to Haney's office, while legal sales reached $4 billion in 2020, illegal sales surpassed $8 billion that same year.

The legislator also argued the measure could also help downtown areas in the state that are struggling in the wake of the pandemic.

"Our downtowns are struggling, and new, innovative businesses, especially in hospitality, nightlife and the arts, are among the best ways to reinvigorate them. California should be excited for the jobs, culture, and tourism that cannabis cafes are going to bring to our state," Haney went on to say.

A similar bill passed the state legislature last year but was vetoed by Newsom. The new version includes worker protections involving secondhand smoke and was backed by the United Commercial and Food Workers union.

AB1775 goes into effect on Jan. 1, 2025.

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