California residents looking to pair a latte with legal cannabis can now rejoice. A newly enacted law allows licensed cannabis dispensaries to add on-site cafés. It offers a unique blend of cannabis and coffee culture inspired by Amsterdam’s iconic cannabis cafés.

What the New Law Means

Under Assembly Bill 1775, cannabis dispensaries in California can provide spaces where patrons consume cannabis alongside freshly prepared food and beverages.

“To be clear, we are not saying that coffee shops should be allowed to sell cannabis,” said Assemblymember Matt Haney (D-San Francisco), who sponsored the bill. “We’re saying cannabis shops should be allowed to sell coffee.”

While this groundbreaking legislation doesn’t permit restaurants or cafés to sell cannabis directly, it gives existing cannabis dispensaries the green light to create sit-in café experiences. The law aims to create a more lively and social cannabis culture in California.

Overcoming Initial Hurdles

The road to legalization wasn’t smooth. In 2023, Governor Gavin Newsom vetoed Haney’s proposal, citing concerns about employee exposure to secondhand smoke. Organizations like the American Cancer Society Cancer Action Network (ACS CAN) raised similar reservations, arguing that marijuana poses the same dangers as tobacco smoke. However, the revised bill, signed into law in September, addresses these issues. The legislation requires proper ventilation systems and provides protective measures for employees.

Local jurisdictions retain the authority to regulate or restrict these cafés, giving cities the ability to tailor the rollout to their communities’ needs.

Economic Impact and the Fight Against the Illegal Market

Cannabis has been a significant economic driver for California since its legalization in 2016. According to the California Tax and Fee Administration, the popular herb has generated over $6 billion in state revenue since 2018. However, the illegal cannabis market has continued to thrive. The Department of Cannabis Control estimated $1 billion in illegal sales in 2022 alone. By contrast, legal sales totaled $5.3 billion that year, down slightly from 2021.

Haney’s legislation aims to level the playing field for licensed cannabis businesses. “This is an attempt to support the highly taxed and regulated cannabis industry that competes with a thriving black market,” Haney’s office stated.

Lessons from Amsterdam

The bill’s inspiration comes from Amsterdam. The capital of the Netherlands successfully countered its illegal cannabis market by legalizing cannabis cafés in the 1970s. These cafés curbed black market activity. Additionally, they became a lucrative draw for locals and tourists. The cafés have generated approximately $1 billion annually in revenue.

Haney believes California could replicate Amsterdam’s success. “Lots of people want to enjoy legal cannabis in the company of others,” Haney said in an October 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.”

The Next Step for Cannabis Cafés

Although the law was enacted on January 3, it may take up to a year before cannabis cafés are fully operational. Businesses must obtain local government approval before moving forward.

San Francisco and West Hollywood are leading the charge. Each city has plans to license cannabis cafés. Meanwhile, San Diego County has a jumpstart. National City is constructing the first cannabis construction lounge.

Haney views these spaces as more than just businesses; he sees them as cultural hubs. “Cannabis cafés will bring massive economic, cultural, and creative opportunities to our state. California is once again leading the way in supporting legal, safe cannabis businesses and culture,” he added.

A Billion-Dollar Opportunity

Proponents of the new law see it as a chance to establish a billion-dollar tourist industry that could rival California’s famous wine regions. As the state integrates cannabis into its cultural and economic framework, these cafés represent a new chapter in California’s cannabis journey.

For now, cannabis enthusiasts can look forward to the day they can enjoy a latte and a joint in a welcoming, regulated environment.