California’s Cannabis Cafes: The Legal and Insurance Concerns Behind AB 1775

Moreover, the law mandates specific protections for café employees, including provisions for masks to mitigate exposure to secondhand cannabis smoke. Governor Newsom, in his signing statement, emphasized, “If adequate protections are not established at the local level, it could necessitate reconsideration of this limited expansion.”

These compliance and liability issues are compounded by the concern that AB 1775 might inadvertently conflict with existing smoke-free workplace laws. Jim Knox of the American Cancer Society Cancer Action Network strongly opposed the legislation, arguing that it undermines California’s stringent smoke-free policies. “This law threatens to roll back decades of hard-won protections of everyone’s right to breathe clean, smoke-free air,” he stated.

Insurance Implications: New Risks, New Policies

The insurance industry will undoubtedly face pressure to adapt quickly. Standard business policies may not fully cover the unique risks posed by cannabis cafes. General liability, property insurance, and even workers’ compensation could be significantly impacted.