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The Street
The Street
Business
Tony Owusu

California governor blocks 'cannabis cafe' bill for wacky reason

California became the first state in the country to enact medical marijuana legislation in 1996, and since then it has been at, or near, the forefront of the cannabis movement in the U.S. 

But progress isn't linear, and as cannabis has made strides towards being the billion dollar industry it has the potential to be, California, and its current Governor Gavin Newsom, has found itself standing in the way of that progress. 

Related: Despite major growth, the cannabis industry is facing a huge roadblock

At least for the time being. 

Over the weekend, Newsom vetoed a measure that would have legalized cannabis cafes like the kind you may find in Amsterdam. The cafes would have been authorized to prepare and sell non-cannabis foods and soft drinks at their facilities as well as host and sell tickets to live events if the bill had passed, providing a couple of large new potential revenue streams for cannabis business owners. 

Newsom and the state have generally been friendly to the cannabis industry, so his reason for vetoing AB 374 must have been good, right?

"I appreciate the author's intent to provide cannabis retailers with increased business opportunities and an avenue to attract new customers. However, I am concerned this bill could undermine California's long-standing smoke-free workplace protections," Newsom said in a note explaining his decision not to sign the legislation. 

California already allows customers to smoke weed in consumption lounges

Saymedia

"Protecting the health and safety of workers is paramount. I encourage the author to address this concern in subsequent legislation." 

But at least one member of the California State Assembly called into question Newsom's explanation. 

"We were not told about the concerns re the smoke free work environment from the health department over the past 7 months that we worked on this bill. Again, consumption lounges where smoking takes place already exist, it was a part of Prop 64, championed by the Governor," Haney said from his X, formerly Twitter, account. 

It currently is legal for customers to smoke or consume cannabis on-site in consumption lounges, and there hasn't been much concern about workers health despite this reality. 

Despite the flimsy reasoning for the veto, the lawmaker said that he is committed to getting the measure, which passed the Assembly with a 66-9 vote and the California Senate with a 33 to 3 vote, back on the governor's desk. 

"With that said, I am fully committed to bringing this bill back and working with the Governor to get this right and signed into law."

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