California Lawmakers Back Cannabis Cafes To Help Tax-Burdened Businesses

California lawmakers approve of legal Amsterdam-style cannabis cafes. 

Members of the State Assembly approved AB 1775 in a 64-9 vote on Monday, sending it to the Senate for consideration. The legislation would enable local jurisdiction to allow licensed cannabis retailers to make and sell non-cannabis food and nonalcoholic drinks, and the cafes to host live music and other performances, reported the Los Angeles Times. 

This is not the first time regulators have approved a measure legalizing marijuana cafes. Last October, Governor Gavin Newsom (D) vetoed a prior version of the bill. Newsom vetoed AB 374, also sponsored by Rep. Matthew Craig Haney (D), expressing concerns that it could undermine California's smoke-free workplace protections. 

"Protecting the health and safety of workers is paramount," the Governor stated at the time. 

Even in states that had legal cannabis for many years, rules are often changing, and the opportunities in the industry are growing. To learn all about the future of the cannabis industry, join us at the Benzinga Cannabis Capital Conference this October in Chicago. Hear directly from key industry players and policymakers. Get your tickets now by following this link. 

A Fair Chance

Considering these previous failed efforts the fate of this bill remains uncertain, though Haney argued that the idea behind the measure is to offer a fair shake to small cannabis businesses to compete with the illegal market. The black market has been thriving in California for years, making it very hard for legal operators to stay afloat having to deal with very high taxes and strict regulations. 

Since January, the Governor’s cannabis enforcement task force has seized over $61 million in illegal cannabis products, including nearly 36,600 pounds of unlicensed cannabis and eradicated over 62,000 illegal plants in law enforcement crackdowns. 

See Also: California Cannabis Industry Is Drowning In Debt – $732M Owed In Taxes, 72% By Companies Already Closed Down

"This is a bill that supports our legal small businesses that just want to diversify their businesses and do the right thing," Haney said Monday on the Assembly floor. "The illicit illegal market is continuing to grow and thrive, while our legal cannabis market is struggling."

Haney added that the current version of the measure has been amended to address Newsom's concerns by banning marijuana smoking or vaping in "back of house" lounges, separating people who are using weed and other work areas, among others. 

Under the current California law, while consumers are allowed to consume use products at dispensaries, the sale of non-marijuana products like coffee or food is not allowed. 

 See Also: Amsterdam Not Included In Government’s Legal Cannabis Trial, And More Marijuana Updates Across Europe

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