California could potentially have Amsterdam-style cannabis cafes.

California Lawmakers Seek to Boost Cannabis Retailers with Proposed Bill

California lawmakers⁢ are determined to support licensed cannabis retailers who are facing challenges in a saturated‌ market, high taxes,⁣ and a persistent⁤ black market. Assembly Bill 374, introduced by Assemblyman Matt Haney (D-San Francisco), aims to ‍address these issues by⁣ allowing local governments to license cannabis cafes where marijuana⁣ can be consumed ‌alongside food and beverages. This innovative approach would provide a new avenue for cannabis businesses to thrive.

The bill has already made significant progress, passing the Assembly floor with an impressive 64–9 vote in May. After an amendment, it‌ also gained approval from the ⁤Senate Rules Committee in August. Now, it awaits a vote on the Senate⁤ floor. If passed, it will return to the Assembly for a revote due to the amendment.

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“Lots of people want to enjoy legal cannabis in the ⁣company of others,” said Mr. Haney in a press release. “And many people want to do that while sipping coffee,​ eating ‌a scone, or listening to music. There’s absolutely ‌no good reason from an economic, health, or safety standpoint that the ⁢state should make that illegal.⁤ If‌ an authorized cannabis retail store wants to also sell a cup of coffee and a sandwich, we should allow cities to make that possible and stop holding back these small businesses.”

Mr. Haney believes that allowing the sale of food and beverages inside licensed cannabis businesses could help boost legal sales ​and compete against the black ⁤market. ​In 2020, California’s legal cannabis sales reached $4 billion, while illicit sales were projected to exceed $8 billion.

This proposed ​bill draws inspiration from ⁣the Netherlands, where the decriminalization of marijuana has been successful. Amsterdam, the capital,⁢ has attracted tourists to its “cannabis cafes” where small amounts of ​marijuana can be ‍consumed. Mr. Haney’s office highlights that over 1.5 million tourists visit these cafes annually, generating over $1 billion in revenue.

By adopting a similar approach, California could potentially achieve similar results. Mr. Haney emphasizes that while consuming cannabis on-site at cannabis retailers is technically legal in California, selling non-cannabis-infused products is not. AB 374 aims to ‌rectify this by allowing cannabis retailers to diversify their‍ business and move away⁣ from the struggling dispensary model.

It’s important to note that smoking inside buildings is generally prohibited in California. However, marijuana stores are permitted to have designated smoking rooms, ensuring compliance with state regulations.