(KRON) — A bill that would allow local California governments to license Amsterdam-style cannabis cafes has made its way out of the state legislature and is now heading to Gov. Gavin Newsom’s desk. The bill, which was spearheaded by Bay Area Assemblymember Matt Haney (D-San Francisco) passed in the California State Senate by a vote of 33 to 3.

Assembly Bill 374 also passed the state assembly with a 66 to 9 vote.

“The bill has enjoyed broad bi-partisan support throughout the legislative process,” according to a press release from Haney’s office. “While cannabis cafes in the Netherlands offer a social experience where coffee, food, and live music are enjoyed together with cannabis, these businesses are currently illegal under California law.”

AB 374 would enable existing cannabis businesses to move away from the dispensary model and move toward a cafe business model that would “bring much-needed tourist dollars into empty downtowns,” Haney’s office said.

“Lots of people want to enjoy legal cannabis in the company of others,” said Haney. “And many people want to do that while sipping coffee, eating a scone, or listening to music. There’s absolutely no good reason from an economic, health, or safety standpoint that the state should make that illegal. If an authorized cannabis retail store wants to also sell a cup of coffee and a sandwich, we should allow cities to make that possible and stop holding back these small businesses.”

Proponents of the bill have also argued that it could be a shot in the arm for the state’s cannabis industry. Since recreational cannabis use was legalized in 2017, businesses have struggled with high taxes and a thriving black market.

“California’s small cannabis businesses are struggling,” said Haney. “Issues like over-saturation, high taxes, and the thriving black market are hurting cannabis businesses who follow the rules and pay taxes.” 

California’s legal cannabis business generated $4 billion in 2020. That same year, the state’s illicit market sales were projected to have exceeded $8 billion.

AB 374 will now move on to Gov. Newsom who must sign it into law before it would take effect on Jan. 1, 2024.