California Governor Signs Bill To Legalize Marijuana Cafes After Vetoing Measure To Let Cannabis Farmers Sell Directly To Consumers

California Gov. Gavin Newsom (D) has signed a bill to legalize cannabis cafes in the state—just one day after vetoing a separate proposal to allow small marijuana growers to sell their products directly to consumers at state-organized farmers markets and

On Monday’s signing deadline, the governor gave final approval to the cannabis lounge legislation from Assemblymember Matt Haney (D).

While the governor supports cannabis legalization, he’s been notably reserved about various drug policy proposals in recent years, for example vetoing legislation to legalize psychedelics and allow safe consumption sites for illegal drugs, in addition to nixing the farmers market proposal.

And with supporters and opponents of the cannabis cafe reform measure putting pressure on his office in recent week, the final outcome has been unclear.

Newsom vetoed a prior version of Haney’s cannabis cafe bill, saying that while he appreciated that the intent was to “provide cannabis retailers with increased business opportunities and an avenue to attract new customers,” he felt “concerned this bill could undermine California’s long-standing smoke-free workplace protections.”

To that end, the measure as passed by the legislature contains changes to create separation between public consumption spaces and back rooms of businesses where food is prepared or stored in order to better protect the health of workers in line with the governor’s concerns.

“I commend the author for incorporating additional safeguards, such as expressly protecting employees discretion to wear a mask for respiration, paid for at the expense of the employer, and requiring employees to receive additional guidance on the risks of secondhand cannabis smoke,” Newsom said in a signing statement on Monday.

“While I am signing this bill, any future measure that diverges from this tailored approach will not be looked upon favorably,” he said. “Furthermore, it is critical that local governments utilize this delegated authority responsibly by prioritizing worker safety and implementing stringent safeguards that minimize public health risks when authorizing these activities. If adequate protections are not established at the local level, it could necessitate reconsideration of this limited expansion.”

Overall, the legislation that Newsom signed into law would allow on-site marijuana consumption at licensed businesses to also offer non-cannabis food and non-alcoholic drinks and host live events such as concerts if they get permission from their local government.

The bill makes explicitly clear that hemp-based food items or drinks are not considered “non-cannabis” products that could be sold at the cafes. It also says that non-cannabis items “shall be stored and displayed separately and distinctly from all cannabis and cannabis products present on the premises.”

The legislation would also allow live musical or other performances on the premises of a cannabis retailer in areas where on-site consumption is allowed.

There have been examples of California businesses that have found workarounds to permit on-site consumption while making food available to guests—but they’ve operated in a grey area, partnering with separately licensed restaurants that receive the profits.

“Lots of people want to enjoy legal cannabis in the company of others,”Haney, the bill sponsor, said. “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,” he said. “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.”

Meanwhile, earlier this month, Haney also addressed a recent statement from the American Cancer Society (ACS), which urged the governor to veto his legislation out of concern about the potential health implications of smoke exposure.

“If you’re worried about secondhand smoke, shouldn’t we give people safe places to go—to consume with others who have made that choice?” he said. “Right now, because of the limits on where people can smoke legally, many people may be forced to smoke at home, around their kids, or in a car or on the street where others are walking by.”

“If you’re worried about secondhand smoke, support us in giving people safe places to go where there are protections and where people have made that choice,” he said.

Ahead of Newsom’s signing of the measure, actor Woody Harrelson—who owns a marijuana lounge in West Hollywood called The Woods, alongside co-founders comedian Bill Maher and tennis star John McEnroe—called for its enactment. Whoopi Goldberg also joined in that push, with a video encouraging the governor to sign it.

“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,” Cal NORML director Dale Gieringer said in a press release on Monday.

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Newsom’s legislative actions come about a week after members of the hemp industry—including Cheech and Chong’s cannabis company—filed a lawsuit seeking to overturn new California regulations that outlaw most consumable hemp products in the state, including those containing any intoxicating cannabinoids derived from the plant.

The suit says the rules, backed by Newsom, are based on a faulty declaration of “emergency” and come after officials failed to effectively implement hemp regulation legislation that was enacted in 2021.

First unveiled earlier this month, Newsom’s new emergency ban won official approval from California’s Office of Administrative Law last week and took effect immediately. The rules prohibit hemp products with any “detectable amount of total THC,” while hemp products that don’t contain THC are limited to five servings per package and may only be sold to adults 21 and older.

The action came less than a month after the state legislature effectively killed a governor-backed bill that would have imposed somewhat similar restrictions on intoxicating hemp-derived cannabinoids.

Meanwhile, a state-funded effort is underway in California to analyze the genetic information of various marijuana strains in order to preserve the state’s rich history of cannabis cultivation. It’s part of a project meant not only to acknowledge the past but also protect the future of legacy growing regions such as the Emerald Triangle.

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Image element courtesy of Gage Skidmore.