California Governor Gavin Newsom approved a measure that will allow the operation of marijuana cafés, modeled after those in the Netherlands. The law is set to come into effect on Jan. 1, 2025, subject to local government approvals.
Last year, Governor Newsom vetoed a similar proposal from Assembly Member Matt Haney, which would have permitted California’s cannabis retailers to run full kitchens and host events. Newsom’s main concern at the time was the lack of adequate worker protections in the bill.
In his latest signing statement, he expressed support for Haney’s improvements to the current bill. These changes include protecting employees’ right to wear masks, with employers covering the costs, and requiring that workers be informed about the dangers of secondhand marijuana smoke. Newsom also stressed that businesses that fail to follow these safeguards will not be viewed favorably.
The marijuana café law might be the only reprieve for California’s cannabis industry for the time being. The governor’s proposed $291 billion budget for FY 2024–2025 doesn’t include any cuts to the fees or taxes imposed on cannabis businesses.
Just a day earlier, Newsom vetoed a bill, AB 1111, that sought to allow small cannabis producers to sell their products directly to users, citing concerns about its wide scope. Further, he stated that the measure’s eligibility criteria, which included most licensed cannabis growers, could potentially strain the state’s cannabis control department’s regulatory efforts and disrupt the existing retail licensing structure.
The veto has been met with disappointment from advocates within the cannabis industry, particularly those representing small growers. The Origins Council, which represents around 800 producers in the Emerald Triangle, voiced its frustration, noting that small businesses are essential to the sustainability and equity of California’s cannabis market.
The bill, had it been signed into law, would have permitted small farmers to sell up to $175,000 worth of cannabis products at approved events, starting in January 2026.
Over the past few weeks, marijuana industry groups and advocates, such as the Origins Council, Equity Trade Network and Supernova Women, pushed hard for Newsom’s approval through various campaigns.
Despite the veto, Newsom noted that he was open to considering a revised version of the bill next year that would be more narrowly focused. He underlined that future legislation should address the major issues that the cannabis sector is currently facing, such as increased access to legal cannabis products and competition from unregulated sources.
This authorization of cannabis cafes in California is likely to be followed by marijuana companies, including SNDL Inc. (NASDAQ: SNDL), because it could usher in a new dynamic within legal marijuana markets in different jurisdictions. This is because when California leads the way, other jurisdictions often take a leaf from what has worked in the Golden State.
About CNW420
CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of an article each business day at 4:20 p.m. Eastern – a tribute to the time synonymous with cannabis culture. The concise, informative content serves as a gateway for investors interested in the legalized cannabis sector and provides updates on how regulatory developments may impact financial markets. If marijuana and the burgeoning industry surrounding it are on your radar, CNW420 is for you! Check back daily to stay up-to-date on the latest milestones in the fast -changing world of cannabis.
To receive SMS alerts from CNW, text CANNABIS to 888-902-4192 (U.S. Mobile Phones Only)
For more information, please visit https://www.CannabisNewsWire.com
Please see full terms of use and disclaimers on the CannabisNewsWire website applicable to all content provided by CNW, wherever published or re-published: https://www.CannabisNewsWire.com/Disclaimer
CannabisNewsWire
Denver, CO
www.CannabisNewsWire.com
303.498.7722 Office
Editor@CannabisNewsWire.com
CannabisNewsWire is powered by IBN