Here’s what you need to know about Sacramento’s new cannabis social consumption ordinance

The Sacramento City Council this week voted to approve an ordinance establishing a pilot program to allow social cannabis consumption at designated locations in the city of Sacramento.

"This pilot program will allow us to carefully evaluate how social cannabis consumption can operate in Sacramento," said Finance Director Pete Coletto. "Our goal is to balance supporting local businesses and expanding consumer options with protecting public safety and health."

The program will allow existing permitted dispensaries to apply for the following permits:

• Type 1 permits allow the consumption of cannabis-infused food and beverages.
• Type 2 permits allow the smoking of cannabis products, such as flower, pre-rolls, and concentrates, provided businesses meet specific ventilation requirements, and the consumption of cannabis infused food and beverages.

The social consumption permits will require dispensaries to submit a Consumption Lounge Operations Plan, an Impaired Driving Prevention Plan, and to comply with other local and State regulations to protect employees, patrons, and the community. Consumption lounge patrons must be 21 years or older to enter.

The City of Sacramento's Office of Cannabis Management (OCM) has spent the past several years exploring social consumption as a potential business activity under specific conditions. These efforts have included hosting community meetings, workshops, and council discussions to collect input and feedback from different stakeholders.

Current state of social consumption

Social cannabis consumption is gradually expanding across California. Currently, over a dozen jurisdictions, including San Francisco, Oakland, and West Hollywood, allow some form of permitted consumption at select retail locations.

In addition to brick-and-mortar locations, permitted social consumption of cannabis is allowed at some music festivals and other events through a cannabis events license.

Earlier this year, Governor Gavin Newsom signed Assembly Bill 1775 into law, marking a key milestone in the cannabis industry. This legislation authorizes cities and counties to permit existing cannabis retailers and consumption lounges to expand their offerings beyond selling cannabis products.

What's next

Add-on permits for consumption lounges are anticipated to become available after the City Council reviews cannabis land-use and zoning amendments, expected in early 2025. Following this, administrative steps such as a fee study will be completed, with permits likely to be issued around summer 2025.

To learn more about local cannabis laws and regulations, visit the City's cannabis webpage, contact the City's Office of Cannabis Management at [email protected] or call (916) 808-8955.