Sacramento is moving into a new phase of legal cannabis after the City Council approved a five-year pilot program allowing on-site consumption lounges at licensed dispensaries.Nearly all of the city council voted “yes” on the program Tuesday, with councilmember Karina Talamantes voting “no” and councilmember Eric Guerra absent from the meeting.The vote, which supporters said has been years in the making, gives dispensaries the chance to apply for two types of lounges: Type 1 venues for non-smoking cannabis use, such as edibles and infused drinks, and Type 2 venues that would allow smoking and vaping in specially ventilated spaces. “I can’t believe this. We finally got here. I’m super excited,” said Maisha Bahati of Crystal Nugs.Mindy Galloway of The Pocket Dispensary said business owners have spent years pushing for the change.“It’s something that we’ve been working on for five years now,” Galloway said. “We’ve been going to City Council meetings and speaking on this topic.”Supporters say the lounges would address a practical need for cannabis users who cannot legally consume in many public or residential spaces.“I myself have had many instances where I had no idea where to smoke,” Galloway said. “We’re not allowed to smoke in parks, we’re not allowed to smoke on the street, we’re not allowed to smoke in apartments.”Galloway added that lounges “give you that opportunity to be able to partake either recreationally or medically.”Even with council approval, business owners said the financial barriers remain significant. Permit fees are set at $7,238 for a Type 1 non-smoking lounge and $9,651 for a Type 2 all-consumption lounge.“It feels like we’re feeing to death, which has kind of been the theme of this budget year,” Councilmember Lisa Kaplan said during the discussion.Kimberly Cargile, owner of A Therapeutic Alternative, said the costs could make it difficult for smaller operators to participate.“The fees are extremely high, and it is definitely a barrier to entry for small businesses and social equity businesses, women-owned businesses,” Cargile said.She added that “about half of our industry” has gone out of business because of “overregulation and overtaxation.”Still, supporters said they see the pilot program as progress and hope the city will continue evaluating the costs as it rolls out.“It’s going to be a lot of oversight. There’s going to be a lot of eyes in the process,” Bahati said. “Hopefully, as a community, we work together.”Under the pilot program, only licensed dispensaries can apply to operate the lounges. City leaders said the five-year trial is intended to help Sacramento evaluate how the program works before deciding whether to make it permanent. Applications are expected to open sometime next month.See more coverage of top California stories here | Download our app | Subscribe to our morning newsletter | Find us on YouTube here and subscribe to our channel

SACRAMENTO, Calif. —

Sacramento is moving into a new phase of legal cannabis after the City Council approved a five-year pilot program allowing on-site consumption lounges at licensed dispensaries.

Nearly all of the city council voted “yes” on the program Tuesday, with councilmember Karina Talamantes voting “no” and councilmember Eric Guerra absent from the meeting.

The vote, which supporters said has been years in the making, gives dispensaries the chance to apply for two types of lounges: Type 1 venues for non-smoking cannabis use, such as edibles and infused drinks, and Type 2 venues that would allow smoking and vaping in specially ventilated spaces.

“I can’t believe this. We finally got here. I’m super excited,” said Maisha Bahati of Crystal Nugs.

Mindy Galloway of The Pocket Dispensary said business owners have spent years pushing for the change.

“It’s something that we’ve been working on for five years now,” Galloway said. “We’ve been going to City Council meetings and speaking on this topic.”

Supporters say the lounges would address a practical need for cannabis users who cannot legally consume in many public or residential spaces.

“I myself have had many instances where I had no idea where to smoke,” Galloway said. “We’re not allowed to smoke in parks, we’re not allowed to smoke on the street, we’re not allowed to smoke in apartments.”

Galloway added that lounges “give you that opportunity to be able to partake either recreationally or medically.”

Even with council approval, business owners said the financial barriers remain significant. Permit fees are set at $7,238 for a Type 1 non-smoking lounge and $9,651 for a Type 2 all-consumption lounge.

“It feels like we’re feeing to death, which has kind of been the theme of this budget year,” Councilmember Lisa Kaplan said during the discussion.

Kimberly Cargile, owner of A Therapeutic Alternative, said the costs could make it difficult for smaller operators to participate.

“The fees are extremely high, and it is definitely a barrier to entry for small businesses and social equity businesses, women-owned businesses,” Cargile said.

She added that “about half of our industry” has gone out of business because of “overregulation and overtaxation.”

Still, supporters said they see the pilot program as progress and hope the city will continue evaluating the costs as it rolls out.

“It’s going to be a lot of oversight. There’s going to be a lot of eyes in the process,” Bahati said. “Hopefully, as a community, we work together.”

Under the pilot program, only licensed dispensaries can apply to operate the lounges. City leaders said the five-year trial is intended to help Sacramento evaluate how the program works before deciding whether to make it permanent.

Applications are expected to open sometime next month.

See more coverage of top California stories here | Download our app | Subscribe to our morning newsletter | Find us on YouTube here and subscribe to our channel