Description
Title: Resolution Establishing Business Operating Permit Fees for Cannabis Consumption Lounges [Published on 02/13/2026; 02/19/2026] [Continued at the February 24, 2026 Council Meeting]
Summary
The Sacramento City Council is considering a resolution to establish business operating permit fees for cannabis consumption lounges as part of a five-year pilot program initiated on November 19, 2024. The proposed fees are $5,372 for Type 1 (non-smoking consumption) and $7,163 for Type 2 (all consumption) lounges. These fees aim to cover the administrative and regulatory costs associated with the lounges' operation, including inspections and enforcement. Notably, fees will be waived for businesses participating in the Cannabis Opportunity Reinvestment and Equity (CORE) program. This legislation is significant as it regulates the burgeoning cannabis industry, potentially increasing economic activity and ensuring compliance with health and safety standards. The fees are not classified as taxes under California's Proposition