HOURS. WE’LL GET MORE IN DEPTH COMING UP IN ABOUT TEN MINUTES. KELLY THANK YOU. HAPPENING TODAY. THE NEXT STEP IN SACRAMENTO’S PUSH TO OPEN CANNABIS CONSUMPTION LOUNGES IS SET FOR A VOTE THIS AFTERNOON. KCRA 3’S MIKE TESELLE JOINS US LIVE IN OUR NEWSROOM TO EXPLAIN HOW MUCH IT COULD COST TO OPERATE A SMOKING LOUNGE IN THE CITY. YEAH, AND OPENING CANNABIS LOUNGES IN THE CITY, SOMETHING THE CITY LEADERS HAVE BEEN WORKING TOWARDS SINCE 2023. SO WHAT IS HAPPENING DURING THIS AFTERNOON’S CITY COUNCIL MEETING IS A VOTE TO SET BUSINESS OPERATING PERMIT FEES FOR CANNABIS CONSUMPTION LOUNGES. NOW, THE VOTE WOULD ESTABLISH TWO TYPES OF LOUNGES IN THIS PILOT PROGRAM. TYPE ONE WOULD ALLOW NONSMOKING CANNABIS CONSUMPTION. TYPE TWO LOUNGES WOULD AUTHORIZE CANNABIS CONSUMPTION, INCLUDING SMOKING AND VAPING. THE PROPOSED COST FOR A PERMIT FOR TYPE ONE WOULD RANGE FROM $7,200, UP TO OVER $9,600 FOR TYPE TWO LOUNGES, AND WHY THE CITY IS PUSHING FORWARD WITH THIS CANNABIS CONSUMPTION LOUNGE IDEA IS BECAUSE THE CITY SAYS THE ADDITION OF THESE TYPES OF LOUNGES COULD INCREASE ECONOMIC ACTIVITY IN THE COMMERCIAL
Sacramento city leaders to take next step in opening cannabis lounges
Updated: 10:35 AM PDT Jun 23, 2026
The Sacramento City Council is set to take action on the next step toward opening cannabis consumption lounges within city limits.Elected leaders are scheduled to vote on a resolution establishing business operating permit fees for such businesses.The 5-year pilot program, which was adopted in November of 2024, creates two types of cannabis consumption lounges.Type 1 would allow non-smoking consumption of cannabis products, while Type 2 lounges would permit smoking and vaping on site.Proposed permit fees:Type 1, non-smoking: $7,238Type 2, all consumption: $9,651″The fees are calculated based on the reasonably foreseeable costs required to administer and enforce the City’s regulations for the issuing, inspecting, monitoring, enforcing, and adjudicating cannabis consumption lounge conditioned permits,” read a city staff report. The staff report also notes that “the addition of cannabis consumption lounges may increase economic activity in the commercial cannabis marketplace, as well as drive cannabis tourism and enhance surrounding businesses to the lounge.”This proposal is scheduled to be heard during Tuesday’s 2 p.m. city council meeting. 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
The Sacramento City Council is set to take action on the next step toward opening cannabis consumption lounges within city limits.
Elected leaders are scheduled to vote on a resolution establishing business operating permit fees for such businesses.
The 5-year pilot program, which was adopted in November of 2024, creates two types of cannabis consumption lounges.
Type 1 would allow non-smoking consumption of cannabis products, while Type 2 lounges would permit smoking and vaping on site.
Proposed permit fees:
Type 1, non-smoking: $7,238Type 2, all consumption: $9,651
“The fees are calculated based on the reasonably foreseeable costs required to administer and enforce the City’s regulations for the issuing, inspecting, monitoring, enforcing, and adjudicating cannabis consumption lounge conditioned permits,” read a city staff report.
The staff report also notes that “the addition of cannabis consumption lounges may increase economic activity in the commercial cannabis marketplace, as well as drive cannabis tourism and enhance surrounding businesses to the lounge.”
This proposal is scheduled to be heard during Tuesday’s 2 p.m. city council meeting.
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