California legislators introduced a bill that would allow state-licensed cannabis consumption lounges to sell freshly prepared food and beverages and host live events.AB374) was introduced last week by Democrat Rep. Matt Haney.
Under California law, cannabis consumption lounges are not allowed to sell freshly prepared food to patrons.a rule change Adopted in November 2022, the law allows lounges to serve pre-packaged food and beverages and allows customers to bring in limited items freshly made by themselves, but businesses themselves cannot , has been denied the opportunity to provide customers with most non-injectable products.
Haney’s bill would allow California consumer lounges to sell freshly prepared food and drinks and host live entertainment events. Cannabis cafes attract 1.5 million visitors a year. It could help locals visit the struggling downtown business district.
“Many people want to enjoy legal cannabis with other people, and many want to do it while drinking coffee, eating scones, listening to music. increase” Honey said in a statement. “There is absolutely no good reason for the state to make it illegal from an economic, health or safety standpoint. We need to make sure we don’t stifle the scale business.”
The bill would not allow cannabis consumption lounges to sell alcoholic beverages. Additionally, Haney said the proposal is limited to licensed consumption lounges and does not allow other types of businesses to enter the legal cannabis market.
“Just to be clear, we’re not saying we should allow the sale of cannabis in coffee shops,” Haney said. “We are saying cannabis shops should be allowed to sell coffee. , should not be illegal to have the opportunity to prosper and create jobs.”
Bill offers new opportunities for consumption lounges
Proponents of the law say Haney’s bill would give cannabis consumption lounges an opportunity to grow and serve their customers. While not taking a position, it said the new revenue streams could help companies survive in a highly competitive and highly regulated industry.
“We are hearing from operators that it is a very difficult time to enter the cannabis space.” Patel said“Some of the reasons are less traffic on the streets and a higher tax burden on the cannabis business. It affects the whole chain little by little.”
Haney’s bill does not automatically allow cannabis consumption lounges to serve food and drink or host live events. need to do it. City leaders in West Hollywood, Palm Springs and Cathedral City have already passed such ordinances, according to Haney’s office. In San Francisco, supervisor Raphael Mandelman plans to introduce legislation on Tuesday to allow the city’s consumption lounges to take advantage of Haney’s proposal.
“I think these (current) restrictions are meaningless and useless for the lounge,” said Mandelmann. “And in terms of creating these more enjoyable spaces and building the local cannabis industry, tourism and economic development, for all of these reasons, it makes sense to take advantage of what Congressman Haney is proposing. I think that there.”
Before AB 374 becomes law, it must pass the California Legislature and the state Senate before being debated in the office of Democratic Governor Gavin Newsom. It’s unclear whether the governor will sign the bill if given the chance, but Haney hopes Newsom will give California’s consumer lounges new ways to thrive in a difficult business environment. I said I was.
“Small cannabis businesses in California are struggling,” Haney said. “Issues like oversaturation, high taxes and a thriving black market are hurting cannabis businesses that pay their taxes by the rules.”
“As a past small business owner who has been in the hospitality industry, I hope the governor will be able to see this as an opportunity,” he added.