Cannabis News
The Beginning of the End for Dispensaries
Despite federal marijuana prohibition, two laws aimed at growing the state’s marijuana industry received final approval this week from the California Assembly and Senate. While the other measure would let small growers sell marijuana at transient events like farmers’ markets, the first would authorize cannabis cafés, such as those seen in Amsterdam.
On January 3, Assemblymember Matt Haney proposed Assembly Bill 1775 (AB1775), which would allow cannabis cafés with a license to offer food and drinks that aren’t cannabis-related.
At the moment, establishments with a license can allow customers to use marijuana on the premises, but they cannot offer other food or beverages. The proposed law would provide local governments with the authority to designate certain places where cannabis use is allowed and allow cannabis stores or micro businesses to make and sell non-cannabis food and drinks. Additionally, it would enable live performances and music at these locations.
On August 27, the Senate enacted AB1775 30-7, with some technical changes. On August 28, the Assembly approved the Senate’s revisions and sent the bill to Governor Gavin Newsom for review after passing it by a vote of 58-6.
Last year, Newsom rejected a similar bill, citing worries about smoke-free workplace policies. The updated version of the law includes requirements to segregate public drinking areas from food preparation and storage facilities.
Assembly Bill 1111 (AB1111) was introduced in February by Assemblymember Gail Pellerin and three cosponsors. With the help of a “small producer event sales license,” this law would enable small-scale marijuana producers to offer their goods at transient gatherings like farmers’ markets. The measure also specifies that cannabis may be used on-site at gatherings that are authorized.
The proposed law would enable licensed cafe enterprises to sell cannabis and for individuals 21 and older to consume it on-site at locations permitted by local municipalities. The Department of Cannabis Control (DCC) could grant temporary event permits under this system.
After a 74-1 vote in the Assembly, AB1111 was approved by the Senate on August 27 by a vote of 27 to 5. On August 28, the Assembly approved the Senate’s revisions, and Governor Newsom was tasked with signing the legislation.
Broadening Access – Cannabis Cafés and Farmers Markets in California
California voters supported a ballot proposal in November 2016 that legalized recreational marijuana use for adults, and the legislation went into effect on January 1, 2018. Despite federal prohibition, the California legislature has passed several bills targeted at growing the state’s marijuana industry. For example, in 2021, Governor Gavin Newsom approved laws authorizing healthcare institutions to let terminally ill people use medicinal cannabis. A few years ago, California changed its tax regulations to enable individuals to deduct costs from legal marijuana enterprises, thereby dissolving the connection between state and federal tax laws. The state also relaxed baking regulations for marijuana companies.
Assembly Bills 1775 (AB1775) and 1111 (AB1111), if passed, would significantly lower obstacles to the expansion of California’s cannabis industry. Despite federal prohibition attempts, this legislation seeks to further normalize marijuana use, encourage market involvement, and enable expansion.
Notably, one California business already allows marijuana consumption alongside food and drinks, despite the state’s legal restrictions. In 2017, West Hollywood passed a local ordinance permitting a unique retailer to operate, offering both cannabis and non-infused food. While this business currently functions in a legal grey area under emergency regulations, the state Bureau of Cannabis Control’s final regulations “expressly prohibit” such activities, as noted in an analysis of the Assembly-passed bill, according to Marijuana Moment.
The Impact of State-Level Legalization
Marijuana remains illegal at the federal level under the 1970 Controlled Substances Act (CSA). Nonetheless, notwithstanding the Supreme Court justices’ views, the federal government lacks the constitutional jurisdiction to ban or regulate cannabis inside state boundaries. If this were not the case, the federal alcohol prohibition would not have needed a constitutional amendment.
Although many state laws against marijuana possession and use were overturned when California legalized it, federal prohibition remains in place. This is crucial since, according to FBI data, state laws, not federal ones, account for about 99% of marijuana-related arrests. States that choose not to enforce marijuana bans are effectively eliminating the cause of the vast majority of these arrests.
Additionally, data suggests that it would take 40% of the DEA’s annual budget just to investigate and shut down all marijuana dispensaries in Los Angeles alone—one city in one state. This estimate doesn’t even account for prosecution costs. The takeaway? The federal government doesn’t have the resources to enforce marijuana prohibition without the support of state law enforcement.
States Leading the Push for Legal Cannabis
Colorado, Washington, Oregon, and Alaska were the first states to legalize marijuana for recreational use. Following the November 2016 approval of legalizing ballot propositions, California, Nevada, Maine, and Massachusetts followed following. In 2018, Michigan voters authorized recreational marijuana. Vermont became the first state to legalize marijuana with a legislative act that same year, and Illinois followed suit in 2019.
In the 2020 election, voters in New Jersey, Montana, and Arizona supported ballot measures that legalized recreational marijuana usage. Marijuana was legalized in New York, New Mexico, Virginia, and Connecticut in 2021, with Rhode Island following suit in 2022. Missouri and Maryland legalized recreational cannabis in November 2022, while Ohio voters approved cannabis in November 2023. 24 states have legalized recreational cannabis use, while 38 states currently allow it for therapeutic uses.
The lesson is evident. “There’s not much the feds can do to shove their so-called laws, regulations, or mandates down our throats,” stated Michael Boldin, Executive Director of the Tenth Amendment Center. “When enough people say, ‘No!’ to the federal government, and enough states pass laws backing those people.”
The passage of AB1775 and AB1111 highlights another important reality: once a state legalizes cannabis, it often expands its laws. As barriers are removed, markets grow, and demand increases, leading to pressure for further relaxation of state laws. These bills represent another step in eroding unconstitutional federal marijuana prohibition. More importantly, they emphasize a strategic principle: passing incremental legislation lays the groundwork for more progress. Opening the door paves the way for additional steps—because the second step can’t happen until the first one is taken.
FARMER’S MARKETS CAN SELL WEED IN CALI, READ ON…
