(FOX40.COM) — Gov. Gavin Newsom signed a bill into law Monday that will allow "Amsterdam-style" cannabis cafes starting next year, the bill's author said. The law allows businesses to sell non-cannabis food and drinks and sell tickets to concerts and other performances. "In the Netherlands, Amsterdam’s cannabis cafes thrive as a part of the city’s unique social structure, and capitalizes on the social nature of cannabis through coffee, food, and live music – all opportunities that are currently illegal under California law," Hanley said. "AB 1775 will allow cannabis retailers to diversify their business and move away from the struggling and limited dispensary model by selling non-cannabis-infused foods.  Marugame Udon set to open new Bay Area location The bill goes into effect on January 1st but local jurisdictions must also approve of and license the new type of business. Assemblymember Matt Hanley said his bill will help legal cannabis businesses compete with black market sellers in the state. “Right now, our small cannabis businesses are struggling to compete against illegal drug sellers that don’t follow the law or pay taxes,” Haney said. “In order to ensure the legal cannabis market can survive and thrive in California, we have to allow them to adapt, innovate and offer products and experiences that customers want. Cannabis cafes are going to be a huge part of the future of cannabis in our state and help to beat back the illegal drug market.” Newsom vetoed a similar bill last year that was also authored by Haney, saying he supported creating the cafes but thought it would undermine the state's "long-standing smoke-free workplace protections." The new law requires local jurisdictions to consider whether the business has adequate ventilation and filtration systems in place. The law also protects a worker's right to wear ventilation masks, such as an N95 mask, in areas of the business where cannabis is smoked. "I commend the author for incorporating additional safeguards, such as expressly protecting employees discretion to wear a mask for respiration, paid for at the expense of the employer, and requiring employees to receive additional guidance on the risks of secondhand cannabis smoke," Newsom said in a message announcing the signing of the bill.