The state of California legalized medical marijuana in 1996 and recreational marijuana sales and consumption 20 years later. On Monday, the Golden State legalized cannabis lounges where customers will be able to buy the drug, then stick around for a meal or a live show.
Marijuana is still a Schedule 1 controlled substance at a federal level, but cannabis is legal for recreational use in 24 states and the nation’s capital, while medical marijuana has been approved in 37 states.
Cannabis lounge coming to National City
Matt Haney, the San Francisco-based Assemblymember who sponsored AB 374, announced Monday morning that California Gov. Gavin Newsom had signed the legislation into law.
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“Lots of people want to enjoy legal cannabis in the company of others,” Haney said Monday in a news release, “and many people want to do that while sipping coffee, eating a sandwich or listening to music. That is now finally legal in California, and there’s no doubt that cannabis cafes will bring massive economic, cultural and creative opportunities and benefits to our state. California is once again leading the way in supporting legal, safe cannabis businesses and culture.”
The law will go into effect Jan. 1, 2025, pending approvals from local governments.
A few locations around California, including National City in 2021, passed ordinances permitting the creation of consumption cafes, but, on a state level, legal approval has lagged.
That all changed this year when the state senate and assembly passed AB 374, which legalizes the lounges, then Newsom signed the bill into law Monday.
Newsom vetoed a similar bill last year, citing concerns over worker protections at the sites.
"I appreciate the author's intent to provide cannabis retailers with increased business opportunities and an avenue to attract new customers," Newsom said, in part, in his veto message, which was signed in October 2023. "However, I am concerned this bill could undermine California's long-standing smoke-free workplace protections. Protecting the health and safety of workers is paramount. I encourage the author to address this concern in subsequent legislation."
Which is exactly what Haney said he did this year when he drafted AB 1775.
"… Haney reintroduced the bill with the support of the United Commercial and Food Workers to ensure cannabis lounge workers are protected from secondhand smoke impacts at work," said a news release issued last week by Haney's office.
According to Haney's office, the state has made strides with cannabis culture but has failed to keep up with, say, Amsterdam.
"In the Netherlands ... cannabis cafes thrive as a part of the city’s unique social structure and capitalize on the social nature of cannabis through coffee, food and live music – all of these opportunities which are currently illegal under California law," the news release pointed out.
Under AB 1775, cannabis cafes will be able to sell non-cannabis-infused food and non-alcoholic drinks, and also host live music.
National City cannabis lounge operator's reaction
The passage of AB 1775 is supported by Alex Ayon, whose Sessions by the Bay cannabis lounge in National City — which will be operated in partnership with the Sycuan Tribal Development Corporation — is slated for a December opening.
"We're very pleased with it," Ayon told NBC 7 last month. "It's a much-needed developmont for the cannabis industry. We're very pleased with it," adding, "cannabis has been legalized for some time now but there haven't been any regulations around where people could consume, so it's important that there's some guidelines so that people can understand where they can consume responsibly."
The nearly 16,000-square-foot, two-story loungs is located in the city's tourist commercial zone at 700 Bay Marina Drive, the former location of California College San Diego.
Ayon said he isn't worried about the possible addition of other cafes in the San Diego cannabis space.
"This isn't really creating competition immediately for us," Ayon said. "It still allows cities to decide where lounges can exist. The big reason that cities have been reluctant to allow them is because the state hadn't provided any sort of framework or oversight for that type of business."
Not having the lounges legalized poses risks, too, Ayon argued.
"We expect cities to be more open to it, which will be a good thing for the industry in general — not just the industry but the community in general," Ayon said. "There's lots of consequences of not having safe spaces to consume."
