A California lawmaker has launched a invoice that may permit the state’s licensed hashish consumption lounges to promote freshly ready meals and drinks and host reside occasions. The measure, Meeting Invoice 374 (AB 374), was launched final week by Democratic Meeting Member Matt Haney.
Underneath California regulation, hashish consumption lounges aren’t allowed to promote freshly ready meals to their patrons. A rule change adopted in November 2022 permits lounges to supply prepackaged meals and drinks and for purchasers to deliver their very own freshly ready objects on a restricted foundation, however the companies themselves are denied the chance to serve most non-infused merchandise to their prospects.
Haney’s invoice would permit consumption lounges in California to promote freshly ready meals and drinks and to host reside leisure occasions. Within the Netherlands, greater than 700 hashish cafes, sometimes called espresso outlets, draw 1.5 million guests per 12 months, in accordance with data from Haney’s workplace. Permitting the state’s consumption lounges to function below the same enterprise mannequin would give the companies new financial alternatives and will function a draw for vacationers and locals to go to struggling downtown enterprise districts.
“A lot of individuals need to take pleasure in authorized hashish within the firm of others. And many individuals need to try this whereas sipping espresso, consuming a scone, or listening to music,” Haney said in an announcement. “There’s completely no good purpose from an financial, well being, or security standpoint that the state ought to make that unlawful. If a certified hashish retail retailer desires to additionally promote a cup of espresso and a sandwich, we must always permit cities to make that doable and cease holding again these small companies.”
The invoice wouldn’t allow hashish consumption lounges to promote alcoholic drinks. Moreover, Haney famous that the proposal is restricted to licensed consumption lounges and doesn’t allow different kinds of enterprises to enter the authorized hashish market.
“To be clear, we’re not saying that espresso outlets must be allowed to promote hashish,” Haney mentioned. “We’re saying that hashish outlets must be allowed to promote espresso. It shouldn’t be unlawful for an present hashish enterprise to maneuver away from solely promoting marijuana and as an alternative have the chance to develop, thrive and create jobs by providing espresso or reside jazz.”
Invoice Presents New Alternatives For Consumption Lounges
Supporters of the laws say that Haney’s invoice would give hashish consumption lounges alternatives to develop and serve their prospects. Though he has not taken a place on the laws, Nikesh Patel, the director of San Francisco’s Workplace of Hashish, mentioned that new sources of income might assist companies survive in a aggressive and extremely regulated business.
“We hear from our operators that it’s a really difficult time to be within the hashish house,” said Patel. “And among the causes are lowered foot visitors on the streets and better tax burdens on hashish companies. There’s nonetheless competitors with the illicit market, and the price of flower as an entire has gone down, and that’s had a trickle impact on the complete provide chain.”
Haney’s invoice doesn’t routinely allow hashish consumption lounges to serve foods and drinks or host reside occasions. As a substitute, native governments would additionally should approve the change for the companies of their jurisdictions. Metropolis leaders in West Hollywood, Palm Springs and Cathedral Metropolis have already handed such ordinances, in accordance with Haney’s workplace. In San Francisco, Supervisor Rafael Mandelman plans to introduce laws on Tuesday to permit the town’s consumption lounges to make the most of Haney’s proposal.
“I believe these (present) restrictions don’t make sense and so they’re not useful to the lounges,” Mandelman mentioned. “And I believe that when it comes to making these extra pleasant areas and constructing out our native hashish business, tourism and financial developments — for all these causes, it is sensible to make the most of what Assemblyman Haney is placing ahead.”
Earlier than it could possibly grow to be regulation, AB 374 should first be handed by the California Meeting and state Senate earlier than heading to the workplace of Democratic Governor Gavin Newsom for his consideration. Though he’s uncertain if the governor will signal the invoice if he’s given the possibility, Haney mentioned that hopes Newsom will give California’s consumption lounges a brand new method to achieve a difficult enterprise atmosphere.
“California’s small hashish companies are struggling,” mentioned Haney. “Points like over-saturation, excessive taxes, and the thriving black market are hurting hashish companies who comply with the foundations and pay taxes.”
“I hope that the governor, as a small-business proprietor himself prior to now who has been concerned within the hospitality business, can now see this as a possibility,” he added.