On Wednesday, a groundbreaking California law permitting cannabis cafes officially took effect, allowing local governments to authorize Amsterdam-style lounges where marijuana consumption can be paired with non-cannabis food, non-alcoholic beverages, and live entertainment. The law, signed by Governor Gavin Newsom in September, marks a significant step in expanding cannabis business opportunities across the state.
The legislation, spearheaded by Assemblymember Matt Haney (D), aims to provide a controlled and safe environment for marijuana use while boosting local economies. However, it grants municipalities the power to establish specific regulations, which could delay implementation in many areas. Cities like Los Angeles and San Francisco, with existing consumption lounge frameworks, are expected to lead the charge.
Businesses are already embracing the policy change. The Woods, a cannabis lounge co-owned by actor Woody Harrelson in West Hollywood, is among the first to expand its services. “This is a win-win-win deal,” said Jay Handal, co-founder of The Woods. “Consumers can enjoy cannabis with a cappuccino or pastry while working on Wi-Fi—like a Starbucks experience.”
The law contains provisions to address health concerns raised by critics, including the American Cancer Society. To mitigate risks associated with secondhand cannabis smoke, public consumption areas must be separated from spaces where food is prepared or stored. Employers are also required to provide masks and safety guidance for workers.
Haney defended the measure, emphasizing the importance of designated consumption spaces. “If you’re worried about secondhand smoke, support safe places where people can consume with protections in place,” he said.
Despite the optimism, hurdles remain. Maisha Bahati, CEO of Crystal Nugs in Sacramento, anticipates it will take up to a year for local governments to finalize regulations. Meanwhile, Governor Newsom continues to balance cannabis reform with public health priorities, recently signing laws to address double taxation and provide tax relief for medical marijuana donations.
As California’s cannabis market evolves, industry leaders and consumers alike are eager to see how the new law transforms the state’s social and economic landscape.
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