California Governor Vetoed Cannabis Cafe Bill, Citing Smoke-Free Concerns

1.7 min readPublished On: October 10th, 2023By

LOS ANGELES — Governor Gavin Newsom has placed a halt on the proposed move to introduce Amsterdam-style cannabis cafes in California. Despite significant bipartisan backing, Assembly Bill 374, the bill that could have potentially transformed cannabis dispensaries into cafes with live performances, food, and cannabis products, met its end at the governor’s desk this Friday.

San Francisco Assemblymember Matt Haney, the driving force behind the bill, intended it as a countermove against the state’s vibrant illicit cannabis market. He looked to emulate the Netherlands, where the introduction of cannabis cafes in the 1970s diminished the unregulated market. Cannabis lounges, where products can be consumed on-site, currently exist under the state’s legal framework, but the selling of non-cannabis items, such as food, is off the table.

Governor Newsom, however, emphasized potential infringements upon the state’s smoke-free policies as the rationale behind his veto.

Haney remained positive, comparing the state’s pride in its wine culture to its cannabis industry. He voiced intentions to reintroduce the bill next year, stressing its importance in bolstering California’s legal cannabis businesses.

Parallel to this, Newsom also vetoed other cannabis-related bills, including one concerning psychedelic drug possession and another on cannabis packaging. Nevertheless, he approved several other cannabis-centric bills, including those focusing on equity, tracking, testing, and licensing.

Newsom’s veto of Assembly Bill 1207, which aimed to prevent state-licensed cannabis companies from using images of real or fictional humans, fruits, vegetables, or mythical beings in their branding, garnered mixed reactions. While Assemblymember Jacqui Irwin backed the bill as a means to shield children from the cannabis industry, Newsom believed the definition of “attractive to children” was overly broad.

Lindsey Renner, a cannabis cultivator and owner of Native Humboldt Farms, expressed relief over the veto. The bill could have curtailed her brand story, which intertwines her Native American heritage, where she cultivates cannabis on ancestral lands.

The contrasting reactions to Newsom’s decisions depict a California deeply entrenched in the evolving cannabis legislative landscape. With the industry’s rapid growth and its accompanying challenges, stakeholders remain watchful of how regulations will shape its future.

About the Author: HCN News Team

The News Team at Highly Capitalized are some of the most experienced writers in cannabis and psychedelics business & finance. We cover capital markets, finance, branding, marketing and everything important in between. Most of all, we follow the money.

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