California Governor Signs AB 1775, the “Cannabis Cafe” Bill

by Omar Figueroa & Lauren Mendelsohn

September 30, 2024 

On Monday, September 30, 2024, the last day for the Governor to sign laws approved by the Legislature, California Governor Gavin Newsom signed Assembly Bill 1775, known colloquially as the “Cannabis Cafe Bill.”  This law, which is classified as non-urgency legislation and therefore takes effect on January 1, 2025, will allow storefront retailers and microbusinesses (with local approval) to sell freshly-prepared food and beverages and sell tickets to live events at licensed premises, similar to the cannabis coffeeshops in the Netherlands.

You can read the text of AB 1775 below and download it here:

You can read Governor Newsom’s Signing Statement below and download it here:

Governor Newsom vetoed an earlier version of a bill that would have allowed for cannabis cafes last year due to concerns over employee exposure to smoke. As his signing statement acknowledges, the version which was approved this year adequately addresses his concerns.

“We thank Governor Newsom for this much-needed support of social use by California’s cannabis consumers, as well as supporting the state’s cannabis industry in this way,” said Cal NORML director Dale Gieringer. California NORML sponsored the bill, and has been helping to lead the effort to expand the availability of consumption lounges statewide.

AB 1775 requires express approval by local jurisdictions in order to unlock its potential.  Additionally, the legislation imposes numerous requirements for cannabis cafes.  The key provisions will be found at subdivision (g) of Section 26200 of the Business and Professions Code when the law takes effect.

Subsection (g)(1) describes three different types of allowable activities: (1) onsite smoking, vaporization, and ingestion of cannabis and cannabis products; (2) preparation and sale of noncannabis food and beverage products, and; (3) the sale of tickets for live musical or other performances where the consumption of cannabis is allowed.

Notwithstanding paragraph (1) of subdivision (a) of Section 11362.3 of the Health and Safety Code, if all of the conditions in paragraph (2) are met, a local jurisdiction may allow for any of the following:

(A) Smoking, vaporizing, and ingesting of cannabis or cannabis products on the premises of a retailer or microbusiness licensed under this division that has been granted authority by a local jurisdiction to engage in onsite cannabis consumption.

      (B) (i) Preparation or sale of noncannabis food or beverage products in compliance with all applicable provisions of the California Retail Food Code (Chapter 1 (commencing with Section 113700) of Part 7 of Division 104 of the Health and Safety Code) by a retailer or microbusiness licensed under this division in the area where the consumption of cannabis is allowed.

            (ii) For purposes of this subparagraph, “noncannabis food or beverage products” shall not include industrial hemp products or hemp products, as defined in Section 111920 of the Health and Safety Code.

     (C) Live musical or other performances on the premises of a retailer or microbusiness licensed under this division in the area where the consumption of cannabis is allowed, and the sale of tickets for those performances.

The first type of allowable activities (namely onsite smoking, vaporization, and ingestion of cannabis and cannabis products) already exists in some local jurisdictions.  The second type of allowable activities permits the preparation of fresh food and beverages similar to Dutch coffeeshops.  Think smoothies, coffee drinks, and sandwiches, which are logical harm reduction measures that pair well with onsite consumption while increasing revenue, including local and state tax revenue.  The third type of allowable activities (ticket sales to live performances where cannabis consumption is allowed) is another aspect of Dutch culture, similar to the Melkweg in Amsterdam.

Subsection (g)(2) imposes numerous requirements on local jurisdictions that wish to permit any of the three types of allowable activities:

A local jurisdiction may allow any of the activities provided in paragraph (1) if all of the following conditions are met:

     (A) Access to the area where cannabis consumption is allowed is restricted to persons 21 years of age or older and each entrance to the area prominently posts a warning that cannabis consumption, including smoking of cannabis, is permitted inside.

     (B) Cannabis consumption is not visible from any public place or nonage-restricted area.

     (C) Sale or consumption of alcohol or tobacco is not allowed on the premises.

     (D) Noncannabis food or beverage products are not contaminated by or commingled with any cannabis products sold or served on the premises where the consumption of cannabis is allowed.

     (E) (i) Smoking or vaporizing of any cannabis product by an employee or customer is not allowed in the food preparation, food storage, or warewashing area of a food facility located on the premises.

          (ii) For purposes of this subparagraph, the following definitions apply:

             (I) “Food facility” has the same meaning as that term is defined in Section 113789 of the Health and Safety Code.

             (II) “Warewashing” has the same meaning as that term is defined in Section 113940 of the Health and Safety Code.

     (F) The local jurisdiction considers whether to require adequate ventilation and filtration systems.

         (i) Ventilation and filtration systems are considered adequate for the purpose of this subparagraph if they prevent smoke and odors from migrating to any other part of the building hosting the consumption lounge or any neighboring building or grounds.

         (ii) Nothing in this subparagraph prohibits a local jurisdiction from allowing one or more forms of cannabis consumption on the premises of a retailer or microbusiness licensed under this division, including smoking, vaporizing, and ingesting of cannabis or cannabis products, while prohibiting other forms of cannabis consumption on the premises of a retailer or microbusiness licensed under this division.

     (G) (i) Employees are permitted at their discretion and without penalty or sanction to wear a mask for respiration, including N95 and NIOSH N95 rated masks in any area where cannabis is smoked.

         (ii) Employers are required to pay for the mask.

     (H) When hired, employees who will be working where cannabis is smoked shall be provided in writing the Department of Public Health or its successor’s guidance regarding secondhand cannabis smoke.

     (I) A cannabis consumption lounge that offers on-site consumption of cannabis products shall include secondhand smoke in their analysis of potential work hazards for purposes of their injury and illness prevention programs required by Section 3203 of Title 8 of the California Code of Regulations.

     (J) Loitering in or around the business is prohibited, and the retailer or microbusiness shall ensure the absence of loitering.

Notably, these additional requirements will apply to local jurisdictions that currently permit onsite smoking, vaporization, or ingestion when the law takes effect on January 1, 2025.  This means that jurisdictions that currently permit onsite consumption will have to update their local cannabis ordinances in order to comply with the new requirements imposed by Assembly Bill 1775.

Since the local ordinances that allow for some type of cannabis consumption (whether smoking, vaporization, or oral or topical ingestion) are due for an update, this would be a convenient opportunity to also update the local ordinances to permit freshly-prepared food and beverages as well as permit ticket sales to live events at licensed premises, adding revenue streams to struggling cannabis retailers while increasing local and state tax revenue and enhancing protections for employees.

Additionally, many jurisdictions indicated that they were waiting to see what would happen with this bill before they considered allowing cannabis consumption lounges at all. Thus, AB 1775’s passage and approval by the Governor should help these cities and counties feel more comfortable to move forward with allowing this type of activity, which benefit the community in many ways from stimulating the local economy to providing safe spaces for residents of multi-unit housing to consume their cannabis.

This information is provided as a public educational service and is not intended, nor should be construed, as legal advice. For specific questions regarding Assembly Bill 1775, cannabis consumption lounges, and updating local ordinances in order to unlock the potential of cannabis cafes in California, please contact the Law Offices of Omar Figueroa at 707-829-0215 or info@omarfigueroa.com to schedule a confidential legal consultation.