<p>State Assemblymember Matt Haney has introduced new legislation that would allow authorized cannabis lounges to sell food, beverages, and host ticketed events. The passing of this bill wouldn't give cannabis lounges the immediate right to do these things, but would give local jurisdictions the right to decide if they would like to allow these activities in their local area. The new bill titled AB-374 was introduced on February 1st and is still pending review.&nbsp;<br /><br />Right now, cannabis lounges are not allowed to sell food or drinks to customers. &ldquo;Lots of people want to enjoy legal cannabis in the company of others,&rdquo; Haney said in the release regarding AB-374. &ldquo;And many people want to do that while sipping coffee, eating a scone, or listening to music. There&rsquo;s absolutely no good reason from an economic, health or safety standpoint that the state should make that illegal.&rdquo; Assemblymember Matt Haney sees the struggles California dispensary owners are facing and wants to give them another avenue for revenue.</p>
<h2 id="0">What Is AB 374?</h2>
<p>AB-374 is an amendment to Section 26200 of the Business and Professions Code, relating to cannabis. If this bill was to pass, local jurisdictions would have the right to decide on whether they would want to allow the proposed changes in their area. In the city of San Francisco, Supervisor Rafael Mandelman has already shown his support. Other cities like West Hollywood, Palm springs, and Cathedral City have already written ordinances permitting cannabis lounges within their jurisdictions. Cannabis dispensaries across California have been suffering. A lot of people across California have gone back to buying black market weed because of how much cheaper it can be. Black market products&nbsp; can be risky as they are not lab tested and quality checked like the products in dispensaries are. The reality is, most people don't care and are willing to take the risk, so they go black market.&nbsp;<br /><br />This bill would give cannabis dispensaries the ability to incentivize customers to come in for an experience that they can't get when purchasing black market weed. Dispensaries would be able to sell food and non alcoholic beverages, as well as host events.&nbsp; By offering these dispensaries could attract new customers and increase their revenues. Cannabis <a href="https://labusinessjournal.com/special-reports/local-cannabis-dispensaries-fighting-for-survival/">dispensaries across California are dying</a>, mostly due to high taxes and black market competition, so a solution like this could be what a lot of dispensaries need.</p>
<p><strong>The exact text from the bill is below:</strong></p>
<p><em><span class="blue_text" style="color: blue;">(2)</span></em> In exercising its authority under paragraph (1), a local jurisdiction may allow the retailer or microbusiness to conduct business activities on the premises other than the smoking, vaporizing, and ingesting of cannabis or cannabis products, including, but not limited to, any of the following:</p>
<div><span class="blue_text" style="color: blue;"><em>(A) </em></span>Selling non-cannabis-infused food.</div>
<div><span class="blue_text" style="color: blue;"><em>(B)</em></span>&nbsp; Selling nonalcoholic beverages.</div>
<div><span class="blue_text" style="color: blue;"><em>(C)</em></span> Allowing, and selling tickets for, live musical or other performances.</div>
<h3 id="1">If Passed, What Would This Mean For Dispensaries?</h3>
<p>If AB 374 was to pass, dispensaries with local approval would be able to sell non infused food, beverages, host ticketed events and allow customers to consume cannabis inside of their lounge. Tons of dispensary lounges are eager for this opportunity and see it as a way to increase their business revenue. As mentioned earlier, the legal cannabis market across California is suffering as customers shift to black market products, so business owners are ready to try new things to increase profits.</p>
<h3 id="2">Who Created This Bill and Is It Likely To Pass?</h3>
<p>Matt Haney (D), a State Assemblymember from California Assembly District 17 is the one who introduced this bill. He was elected into office in 2022. You can track this bill and others by this assemblymember <a href="https://www.billtrack50.com/legislatordetail/26242">here</a>.&nbsp; There have been two previous attempts to legalize "Cannabis Cafes" across California, but both were unsuccessful. The most recent attempt was AB-1034. That bill had major opposition from groups like the American Lung&nbsp; and American Heart Association, who argued allowing people to smoke where people are eating and preparing food may cause issues with exposure to second hand smoke.&nbsp;</p>
<p><strong>Source:</strong><br /><a href="https://www.kqed.org/">https://www.kqed.org/</a></p>