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California lawmakers pass bill allowing Amsterdam-style cannabis cafes

Two men, one in a green baseball cap and the other a Hawaiian shirt, sit beneath a neon sign that says DRUGS
Patrons enjoy a joint at a restaurant and cannabis bar in West Hollywood, which is allowed to operate through a license issued by the city. The rest of California could soon follow.
(Brian van der Brug / Los Angeles Times)
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Under a bill approved by the state Legislature Wednesday, Californians may soon be able to walk into a dispensary, light a cannabis pre-roll and order a side of fries or a sandwich to enjoy with it.

Some California dispensaries already offer “consumption lounges” for customers to vape, smoke and sample edibles on site, but they’re barred from selling anything other than prepackaged snacks and drinks. If Gov. Gavin Newsom signs Assembly Bill 1775, cities in the Golden State would have the leeway to permit so-called “cannabis cafes,” which could sell food and nonalcoholic beverages and host live music and other performances. The bill cleared the Assembly on a 63-5 vote.

The “cannabis cafe” model has been compared to Amsterdam, where the consumption of cannabis has been legal at coffee shops since the 1970s.

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Supporters of the California bill argue that it would help create a more comfortable recreational weed culture that would boost the bottom lines for California’s highly taxed and regulated legal cannabis dispensaries, which compete with black-market sellers.

Assemblymember Matt Haney (D-San Francisco), who wrote the bill, has said that another revenue stream would support legal businesses that “just want to diversify their businesses and do the right thing.”

“The illicit illegal market is continuing to grow and thrive, while our legal cannabis market is struggling,” Haney said earlier this year during a debate over the bill.

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An L.A. Times/WeedWeek investigation finds alarming levels of pesticides in cannabis products at dispensaries across the state

The bill is sponsored by the California Nightlife Assn. and California NORML, a chapter of the national organization that lobbies for changes to cannabis laws. The groups have argued that California’s current dispensary policies have “replaced the social aspect of the Amsterdam cannabis scene with pharmacy-like businesses that only allow customers to order cannabis at a counter, purchase nothing else, and then leave.”

The bill is opposed by public health groups, including the American Heart Assn. and the Health Officers Assn. of California. Those groups have argued that secondhand marijuana smoke has higher particulate levels than tobacco smoke, and can cause health issues including cardiovascular disease, lung irritation and asthma attacks.

Newsom vetoed a nearly identical version of the cannabis cafe bill last year, saying he was concerned about the potential effect on California’s “longstanding smoke-free workplace protections.”

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New amendments added in the Senate this month seem aimed at addressing Newsom’s concerns, including clarifying that, if cities choose to impose ventilation standards, the systems must be powerful enough to prevent “smoke and odors from migrating to any other part of the building hosting the consumption lounge or any neighboring building or grounds.”

The bill also specifies that cannabis cafe employees would have the right to wear respirator masks at work, paid for by their employers. Employers would also be required to include secondhand smoke in their injury and illness prevention plans that are required under California labor law.

After pesticides are found in legal weed products, California regulators scramble to get a testing program in place.

West Hollywood created a similar licensing system six years ago, and now has a handful of cannabis cafes operating in less than two square miles. Local officials who are calling the city the “Amsterdam of the far West” have said that the comfort and familiarity of smoking or vaping in a restaurant setting could help the city see one of the highest numbers of cannabis businesses per capita in the world.

The cafes in West Hollywood operate with some workarounds that separate the food businesses from the dispensaries, including partnering with nearby restaurants to deliver fresh food to their customers, The Times has previously reported. One consumption lounge called PleasureMed has a bar that serves alcoholic drinks and a kitchen that serves hot food — but they’re separate buildings, and separate companies, from the dispensary itself.

Customers are generally required to pay cash for cannabis products, even if they’re also ordering food, to avoid running afoul of federal banking regulations.

The City of Los Angeles and other major cities in Southern California do not yet have such licensing systems, but could create them if Newsom signs AB 1775.

Times staff writer Julia Wick contributed to this report.

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