AB 2697 Advances: Drive-Thru Cannabis Sales Inch Closer in CA

A bill that would resolve one of California cannabis retail’s most persistent regulatory contradictions cleared another hurdle this week, and licensees should start thinking about what it might mean for their premises and local approvals if it becomes law.

By the Baghoomian Law team

What Happened This Week

On June 11, 2026, the Senate Business, Professions and Economic Development Committee voted 7 to 3 to advance Assembly Bill 2697, a measure that would allow licensed cannabis retailers and storefront microbusinesses to sell cannabis to customers in motor vehicles through a drive-through located on the licensed premises. The committee’s vote sends the bill to Senate Appropriations for further consideration, the next step on what is still a multi-stop journey toward enactment. The measure had already cleared the full Assembly in May on a 55 to 9 vote.

The bill is authored by Assemblymember Gail Pellerin (D), who has framed AB 2697 as a way to expand access for medical patients, seniors, and people with mobility impairments, and to give regulated retailers another tool to compete with the illicit market. The bill remains alive in the Senate and faces additional procedural and policy votes before any conversation about a governor’s signature becomes realistic.

The Regulatory Contradiction the Bill Resolves

Under existing California law and Department of Cannabis Control regulations, a licensed retailer can ring up a customer who walks into the storefront, deliver to that customer’s home, and even hand off product curbside in a parking lot. What the licensee currently cannot do is complete a sale to that same customer through a window on the side of the same building. The regulatory distinction between a delivery, a curbside handoff, and a drive-thru transaction is largely structural rather than substantive, and operators have been pointing out the inconsistency since the pandemic-era curbside rules became permanent.

AB 2697 would authorize, but not require, this form of sale. The drive-thru transaction would have to occur at a licensee that already conducts storefront retail sales from a public-facing premises. Delivery-only retailers and businesses that do not maintain premises open to the public would be outside the bill’s scope. The transaction itself would have to take place through a fixed-pane security window with a security drawer, or a similar secure transfer mechanism, that is part of a building located within the licensed premises. In other words, the bill contemplates a hardened, purpose-built window structure rather than an ad hoc walk-up arrangement.

The bill would also leave intact the rest of California’s cannabis retail framework. Age verification, transaction limits, packaging and labeling, METRC track-and-trace reporting, and tax collection requirements would all continue to apply. AB 2697 modifies how a sale may be physically conducted, not the substantive rules that govern who may buy, what may be sold, or how the sale must be recorded.

Local Control Is the Pivotal Provision

The most important feature of AB 2697 for licensees and prospective applicants is that it does not legalize drive-thru cannabis sales statewide. It authorizes local jurisdictions to permit them. Cities and counties would retain authority to decide whether drive-thru sales are allowed within their boundaries, and on what terms.

That structure is consistent with the rest of Business and Professions Code Division 10. California’s cannabis regulatory architecture has always reserved meaningful authority to local governments to decide whether and how to allow commercial cannabis activity. Local opt-in for drive-thrus would slot neatly into that scheme, but it also means that an operator who reads the headline and assumes “drive-thrus are legal in California” will be making a costly mistake. Whether a particular dispensary can build a drive-thru window will depend on the licensed retailer ordinance in its host city or county, the conditional use permit terms attached to its premises, and any modifications or new approvals that local zoning and police powers may require.

That is not a trivial set of approvals. Local jurisdictions in California have widely divergent approaches to cannabis retail, ranging from outright bans to robust permitting frameworks. For operators in jurisdictions that have been cool to cannabis retail in the first place, a drive-thru addition is unlikely to be a fast yes. For operators in cannabis-friendly jurisdictions, success will likely depend on demonstrating compliance with building code, public safety, and traffic engineering standards that go well beyond the cannabis-specific rules.

What This Means for Operators

Even though AB 2697 is not yet law, operators should begin diligence now if a drive-thru is on the strategic roadmap. The most productive starting point is a careful look at the existing premises. The bill’s fixed-pane window with security drawer requirement implies a specific physical configuration that many existing retail buildouts cannot accommodate without meaningful construction. Operators leasing space should review tenant improvement allowances, landlord consent requirements, and any restrictive covenants in the lease that could complicate a buildout. Operators considering a new premises or relocation should think about traffic flow, stacking distance for a drive-thru lane, and how a drive-thru fits into the security plan the DCC will review.

The second area to address is local approval. Operators should review their existing conditional use permit or cannabis business permit and identify what amendments would be required to add a drive-thru. If the city or county has not previously contemplated drive-thru cannabis sales, conversations with planning staff, the police department, and the city or county attorney are likely needed long before any application is submitted. The operators who move first will be the ones who can articulate a credible safety case, including how IDs will be verified at the window, how impaired-driving signs will be assessed, and how the location will be designed to discourage loitering and queue overflow into public rights of way.

Finally, operators should track the bill through the Senate. AB 2697 next moves to Senate Appropriations, and any amendments adopted there or on the Senate floor could materially change the security, hours-of-operation, or local-control provisions. The bill’s compliance footprint at signing may not be the compliance footprint that exists today.

Get Tailored Guidance

Adding a drive-thru is a licensing event, a real estate event, and a local approval event all at once. Baghoomian Law advises California cannabis operators on DCC licensing, local cannabis permitting, and the regulatory diligence required to expand a retail footprint. If your business is evaluating whether AB 2697 could fit your premises and your jurisdiction, contact our team at dcclicensing.com to schedule a consultation.

Sources: California Legislature bill page (leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202520260AB2697); The Marijuana Herald reporting on the June 11, 2026 Senate committee vote; Marijuana Moment coverage of the bill’s Senate advancement.

This post is for informational purposes only and does not constitute legal advice. Consult licensed counsel for advice on your specific situation.