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California new laws for 2025: Cannabis cafes and entertainment zones

Customers in an outdoor seating area outside a restaurant in downtown San Diego on July 24, 2024.
Photo courtesy of Adriana Heldiz
Customers in an outdoor seating area outside a restaurant in downtown San Diego on July 24, 2024.

The state is allowing more on-street alcohol sales and food in cannabis lounges. Supporters say the laws will boost downtown economies.

Starting Jan. 1, alcohol and cannabis sales could expand in some parts of California thanks to two new laws that aim to increase central city foot traffic, which has yet to fully recover from the COVID-19 pandemic.

, authored by state Sen. , will let local governments designate 鈥渆ntertainment zones,鈥 where bars and restaurants can sell alcoholic beverages for people to drink on public streets and sidewalks.

Some organizations, such as the California Alcohol Policy Alliance, oppose SB 969 because it could contribute to drunk driving accidents and increased alcohol mortality rates.

Gov. Gavin Newsom signed a similar bill in 2022, but it was limited to San Francisco. In September, the city experimented with an entertainment zone for Oktoberfest and reported at least 10 times more foot traffic than the 2023 celebration.

鈥淕etting people out in the streets to enjoy themselves is critical for communities across our state to bounce back from the pandemic,鈥 Wiener, a San Francisco Democrat, said in a statement.

There鈥檚 still a lot of broader economic uneasiness, among business leaders and Californians . Newsom has .

legalizes Amsterdam-style cannabis cafes, allowing lounges to also sell food and drinks that aren鈥檛 pre-packaged. After opposition from the American Heart and Lung Association and Newsom鈥檚 veto of a similar bill in 2022, AB 1775 includes additional protections for workers against secondhand smoke.

鈥淟ots of people want to enjoy legal cannabis in the company of others,鈥 bill author Assemblymember , also a San Francisco Democrat, said in a statement. 鈥淎nd many people want to do that while sipping coffee, eating a sandwich, or listening to music. There鈥檚 no doubt that cannabis cafes will bring massive economic, cultural and creative opportunities and benefits to our state.鈥

This story was written by former CalMatters politics intern .

 is a nonprofit, nonpartisan media venture explaining California policies and politics.