"Touted as the Amsterdam Cafe–style law, Assembly Bill 1775 is more complex: it expands options for dispensaries and cannabis lounges by allowing them to prepare and sell nonalcoholic and non-psychoactive drinks like coffee or soda for on-site consumption, permits cafés to sell food at lounges and dispensaries, and alters previous regulatory and tax treatment—prior to January 1, 2025, consumption lounges were required to pay two different taxes and payroll as a restaurant and a cannabis lounge. The bill also authorizes live music performances at any dispensary or lounge statewide (the City of Los Angeles had prohibited dispensaries from having live entertainment or DJs). As a result of these changes, a West Hollywood venue will soon serve coffee drinks and pastries in addition to cannabis. Although adult cannabis use has been legal in California since 2017, dispensaries have struggled to compete with the black market due to the state’s tightly regulated industry, and AB 1775 aims to broaden customer offerings and new revenue streams for licensed businesses." - Rebecca Roland