Amsterdam-Style Cannabis Cafes Just Became Legal in CA

SAN FRANCISCO - Today, Governor Newsom signed Assemblymember Matt Haney’s (D-San Francisco) legislation that allows local California governments to license Amsterdam-style cannabis cafes. AB 1775, authored by Haney, received strong bipartisan support in the California Legislature, having passed out of the Senate with a 30-7 vote, and the Assembly with a 63-5 vote.

California is famous for its cannabis culture driven by the state’s early adoption of medical cannabis and expertise in cultivation. But California fails to keep up with one city for the world title of cannabis culture: Amsterdam. In the Netherlands, Amsterdam’s cannabis cafes thrive as a part of the city’s unique social structure, and capitalizes on the social nature of cannabis through coffee, food, and live music – all opportunities that are currently illegal under California law. AB 1775 will allow cannabis retailers to diversify their business and move away from the struggling and limited dispensary model by selling non-cannabis-infused foods.

“Lots of people want to enjoy legal cannabis in the company of others,” said Haney, “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. California is once again leading the way in supporting legal, safe cannabis businesses and culture.”

A previous version of the bill, AB 374, was vetoed last year by Governor Newsom, who urged in his veto message to reintroduce the bill to include more protections for cannabis workers. This year, Assemblymember Haney reintroduced the bill with the support of the United Commercial and Food Workers to ensure cannabis lounge workers are protected from secondhand smoke impacts at work.

The bill levels the playing field for the highly taxed and regulated legal cannabis industry that is being forced to compete in California with a thriving cannabis black market. The illegal sale of cannabis is extremely profitable in California with illegal sellers choosing to simply ignore costly regulations, product testing, permitting, and taxation. California’s legal cannabis sales reached $4 billion in 2020, while illegal sales are believed to have surpassed $8 billion that same year.

“Right now, our small cannabis businesses are struggling to compete against illegal drug sellers that don’t follow the law or pay taxes,” Haney said. “In order to ensure the legal cannabis market can survive and thrive in California, we have to allow them to adapt, innovate and offer products and experiences that customers want. Cannabis cafes are going to be a huge part of the future of cannabis in our state and help to beat back the illegal drug market,” said Haney.

The bill goes into effect January 1st. And with approval from local governments, Californians should be able to enjoy cannabis cafes as early as the new year.

“This couldn’t be happening at a better time for California. 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,” said Haney, who also serves as Chair of the Select Committee on Downtown Recovery.”

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