The sale of cannabis, prepared food, coffee and live entertainment — all in one place — has been legal in California for over a year.

But while San Francisco has long been marijuana-friendly, the city has yet to approve cannabis cafes for operation, officials said Monday.

At City Hall, Supervisor Rafael Mandelman announced Monday an ordinance that would enact AB 1775 — The Control, Regulate and Tax Adult Use of Marijuana Act — on the city level.

California operates the world’s largest legal cannabis market — with $29 billion in cumulative sales since 2020, according to state numbers. Yet the state only captures less than two-thirds of the total market, while illegal operations flourish.

“We have our legal cannabis industry retailers following all the rules, following all the laws, paying the taxes in competition with people who just don’t have to deal with any of that,” Mandelman said at a press conference on Monday. “It’s important to provide new pathways for the legal industry to survive and thrive.”

Assemblymember Matt Haney, who authored the state law, said he’s supported efforts like this since Proposition 64, which legalized cannabis for recreational use in California since 2016.

“If we don’t innovate and adapt like we are doing today, we risk watching California’s legal cannabis industry continue to collapse,” Haney said. “This has tremendous value in jobs and revenue for our state.”

Will Dolan, owner of cannabis businesses in the Outer Sunset and Mission districts, said local legislation will allow him and other community members to have “a space at the crossroads of cannabis and hospitality.”

“The community can gather, consume cannabis and enjoy such things as coffee, light bites, a snack, and entertainment such as music and standup comedy,” Dolan said. “I’m incredibly excited for this opportunity, not just for my business but for the industry as a whole and specifically for our local industry here in San Francisco.”

San Diego, West Hollywood and Sacramento already operate cannabis cafes of their own.

Lawmakers cited health and safety laws as the main reasons why the bill has not yet gone into effect in San Francisco. The ordinance would amend the city code governing those domains, along with tax and business laws, to make it easier for cannabis cafes in San Francisco to get approved.

Mandelman thanked San Francisco’s Director of Nightlife Initiatives Ben Van Houten for amending the existing legislation in efforts to reduce obstacles businesses may face from local government and “clear the path to open real cannabis cafes.”

The ordinance would additionally require sites to have clear signage of consumption, training on second-hand smoke and ventilation and prohibit loitering.