California Gov. Gavin Newsom, a Democrat, signed a bill on Tuesday that authorizes Dutch-style cannabis cafes in the state.

Under the law that will go into effect on January 1, 2025, businesses that are currently licensed to sell cannabis in the state can serve hot food and non-alcoholic beverages too.

State assemblyman Matt Haney, author of the bill, said the legislation will allow cannabis businesses to better compete against illegal drug dealers. 

"Right now, our small cannabis businesses are struggling to compete against illegal drug sellers that don't follow the law or pay taxes," said Haney, a Democrat who represents San Francisco.

Some public health advocates expressed concern about the new law.

"Secondhand marijuana smoke has many of the same carcinogens and toxic chemicals as secondhand tobacco smoke," said the American Cancer Society's advocacy branch.

The organization said that the law "undermines the state's smoke-free restaurants law and compromises its enforcement, thus threatening to roll back decades of hard-won protections of everyone's right to breathe clean, smoke-free air."