California new laws for 2025: Cannabis cafes and entertainment zones

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.

Senate Bill 969, authored by state Sen. Scott Weiner, will let local governments designate “entertainment zones,” 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.

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

There’s still a lot of broader economic uneasiness, among business leaders and Californians concerned about the cost of living. Newsom has embarked on a jobs tour.

AB 1775 legalizes Amsterdam-style cannabis cafes, allowing lounges to also sell food and drinks that aren’t pre-packaged. After opposition from the American Heart and Lung Association and Newsom’s veto of a similar bill in 2022, AB 1775 includes additional protections for workers against secondhand smoke.

“Lots of people want to enjoy legal cannabis in the company of others,” bill author Assemblymember Matt Haney, also a San Francisco Democrat, said in a statement. “And many people want to do that while sipping coffee, eating a sandwich, or listening to music. There’s no doubt that cannabis cafes will bring massive economic, cultural and creative opportunities and benefits to our state.”

This story was written by former CalMatters politics intern Jenna Peterson.