Sacramento Municipal Code Art. XI Cannabis Consumption Lounges

A. No person shall operate a cannabis consumption lounge without having a valid storefront cannabis dispensary permit with a condition that authorizes the operation of a lounge in accordance with this article.

B. A storefront cannabis dispensary permit may be authorized to allow the operation of a cannabis consumption lounge with one of the following types of conditions:

1. Type 1 condition (non-smoking consumption). A type 1 condition on a valid storefront cannabis dispensary permit authorizes a storefront cannabis dispensary permittee to allow persons to consume cannabis and cannabis products, other than by smoking or vaping, in a cannabis consumption lounge on the site, subject to the provisions of this chapter.

2. Type 2 condition (all consumption). A type 2 condition on a valid storefront cannabis dispensary permit authorizes storefront cannabis dispensary permittee to allow persons to consume cannabis and cannabis products, including by smoking or vaping, in a cannabis consumption lounge on the site, subject to the provisions of this chapter. (Ord. 2024-0044 § 9)

A. The following fees are established and imposed pursuant to the provisions of this section:

• 1. Cannabis consumption lounge program fee;
• 2. Type 1 condition fee; and
• 3. Type 2 condition fee.

B. When applying for a new or renewal of a cannabis consumption lounge condition pursuant to this chapter, the applicant shall submit the cannabis consumption lounge program fee, plus the applicable fee for the condition that the applicant is seeking to obtain.

C. The city council shall establish by resolution the amounts of the fees specified in subsection A, and any related penalties.

D. The fees established and imposed in this section are separate and in addition to any storefront cannabis dispensary permit fees that apply pursuant to section 5.150.340. (Ord. 2024-0044 § 9)

All cannabis consumption lounges must comply with the following:

A. Size. A cannabis consumption lounge must be no larger than 1,500 square feet or 50% of the total floor area of the storefront cannabis dispensary site, whichever is smaller.

B. Not visible to the public. The interior of the cannabis consumption lounge must not be visible from the public right-of-way, non-age-restricted areas, the unsecured areas surrounding the buildings on the site, or the site's main entrance and lobby.

C. Partitioned. A cannabis consumption lounge must be separated from all other areas of the storefront dispensary by solid walls and doors. The wall may include glass to provide visibility between the dispensary and the lounge. (Ord. 2024-0044 § 9)

A type 2 cannabis consumption lounge must comply with the following:

A. Enclosed. The lounge must be indoors and fully enclosed.

B. Soundproofed. The lounge must be adequately soundproofed so that the interior noise does not violate chapter 8.68 (Noise Control).

C. Negative pressure. The lounge must be designed to have negative pressure to limit, to the extent possible, leakage of smoke and particulate matter into the non-smoking areas of the site.

D. HVAC. The lounge must have an HVAC system that does not recirculate air and that has a high rate of air exchange.

E. Odor prevention. The lounge must have an odor-absorbing ventilation and exhaust system that prevents the odor generated from inside of the lounge from being detected outside of the site or within any other area located within the same building as the lounge. (Ord. 2024-0044 § 9)

A cannabis consumption lounge operator shall display a valid storefront cannabis dispensary permit with a condition that authorizes the operation of a lounge in a conspicuous place inside of the lounge so that all persons inside of the lounge may readily see it. (Ord. 2024-0044 § 9)

A cannabis consumption lounge operator authorized to operate a type 1 cannabis consumption lounge shall display at each entrance of the lounge a sign that states, "Cannabis consumption, except smoking and vaping, is allowed inside of this lounge. No person under 21 years of age shall be in the lounge." The sign must be in a conspicuous place so that all persons entering the lounge may readily see it. The sign must be clearly legible and not less than 8 inches by 10 inches in size. (Ord. 2024-0044 § 9)

A cannabis consumption lounge operator authorized to operate a type 2 cannabis consumption lounge shall display at each entrance of the lounge a sign that states, "Cannabis consumption, including smoking and vaping, is allowed inside of this lounge. No person under 21 years of age shall be in the lounge." The sign must be in a conspicuous place so that all persons entering the lounge may readily see it. The sign must be clearly legible and not less than 8 inches by 10 inches in size. (Ord. 2024-0044 § 9)

A cannabis consumption lounge operator shall display signs designated by the city that address the health impacts of the consumption of cannabis. The signs must be displayed at the entrance to the lounge in a conspicuous place so that all persons may readily see it. (Ord. 2024-0044 § 9)

A cannabis consumption lounge operator shall display in all on- and off-site parking areas of the lounge, a sign that states, "Please be respectful of neighboring residents and businesses by leaving the area quietly;" and, where applicable, a sign that states "Notice: A permit may be required to park within the adjacent neighborhoods." The sign must be in a conspicuous place so that all persons entering and exiting the parking areas may readily see it. The sign must be clearly legible and not less than 8 inches by 10 inches in size. (Ord. 2024-0044 § 9)

Cannabis consumption lounge operators shall include properly maintained solid waste, organic waste, and recycling containers in sufficient numbers and locations to service the needs of the lounge. (Ord. 2024-0044 § 9)

No cannabis consumption lounge operator shall operate a lounge between 11:00 p.m. and 7:00 a.m. The city manager may impose more restrictive hours as a condition on the permit. (Ord. 2024-0044 § 9)

A. No person under 21 years of age shall enter or remain in a cannabis consumption lounge.

B. No cannabis consumption lounge operator shall allow any violation of this section. (Ord. 2024-0044 § 9)

A. Operator age limit. No person under 21 years of age shall operate a cannabis consumption lounge in any capacity, including as a manager, employee, contractor, or volunteer.

B. Education and training. The cannabis consumption lounge operator shall educate their managers, employees, and volunteers about the various types of cannabis and cannabis products allowed in the consumption lounge, including the potency, absorption time, and effects; and shall train their managers, employees, and volunteers to likewise educate customers on their purchases. The cannabis consumption lounge operator shall also train their employees to recognize signs of impairment in their customers.

C. Community-relations employee. The cannabis consumption lounge operator shall designate an employee as their onsite community-relations contact; provide their name and phone number by certified mail to all neighboring properties within 100 feet of the site; and advise them to notify the community-relations contact if there are operational problems with the lounge that impact the neighborhood. The cannabis consumption lounge operator shall also provide the name and phone number of the onsite community-relations contact to the Sacramento Police Department.

D. Manager. The cannabis consumption lounge operator's manager shall be in the lounge whenever there is a customer in the lounge. (Ord. 2024-0044 § 9)

A. Consumption in lounge only. No person shall consume cannabis or cannabis products on a storefront cannabis dispensary site in any area other than the cannabis consumption lounge.

B. No cannabis consumption lounge operator shall allow any person to consume in the lounge any cannabis or cannabis product that was not purchased from the associated dispensary. (Ord. 2024-0044 § 9)

A. No cannabis consumption lounge operator shall sell or provide for free any cannabis or cannabis products inside the lounge.

B. No cannabis consumption lounge operator may sell or provide for free any food or beverages in the lounge, unless it is prepackaged and does not contain cannabis or alcohol.

C. No cannabis consumption lounge operator shall store, display, contaminate, or commingle any prepackaged food or beverage with any cannabis or cannabis product on the site. (Ord. 2024-0044 § 9)

A. Closing announcement. One hour before the closing time of the lounge and at the closing time, the cannabis consumption lounge operator or their manager shall announce the closing time of the lounge and request that customers respect the residents of the adjacent neighbors by being quiet when leaving.

B. Retail limit. No cannabis consumption lounge operator or its manager, employee, or volunteer shall provide cannabis or cannabis products to obviously impaired customers.

C. Car services. A cannabis consumption lounge operator shall provide written information on ridesharing and ride-hailing car services for their customers.

D. Entry and exit of the lounge. A cannabis consumption lounge operator or its manager, employee, or volunteer shall escort customers in and out of the lounge. (Ord. 2024-0044 § 9)

This article remains in effect until January 1, 2030, and on that date this article is repealed and all permit conditions that authorize the operation of a cannabis consumption lounge are void. (Ord. 2024-0044 § 9)