Sacramento leaders can’t agree on new rules for cannabis dispensaries, lounges
AI-generated summary reviewed by our newsroom.
- City council failed 6-3 to approve new cannabis zoning and lounge rules.
- Proposal would allow faster permits outside 600-foot buffers, curbing council input.
- Industry employs about 8,000; lounge openings delayed with earliest estimate spring 2026.
Sacramento’s plans to open its first cannabis consumption lounges stalled on Tuesday after city leaders failed to agree on new regulations.
A proposal to ease geographic restrictions on cannabis businesses and determine how much input residents have when lounges are proposed in their neighborhood failed in a 3-6 vote. Mayor Kevin McCarty and Council members Phil Pluckebaum and Caity Maple were the sole votes in support.
The disagreement mostly centered on councilmember influence when approving certain cannabis businesses. The proposal heads back to city staff for further deliberation. McCarty said it would return to the City Council at a later date, though did not specify when.
Tuesday’s proposal intended to culminate a yearslong effort to expand where cannabis businesses can operate while avoiding clustering in certain neighborhoods. The industry is now among the top 10 employment sectors in Sacramento, with about 8,000 workers, according to a recent city staff report.
Under the current city ordinance, all cannabis businesses must secure a conditional use permit, which some have called a costly and lengthy process. City staff said the new regulations were guided from internal findings showing cannabis operations have not increased crime, reduced home values or produced negative economic effects.
“I look forward to further moving the cannabis industry away from prohibition and treating it more and more like alcohol,” said Councilmember Phil Pluckebaum.
Staff, with input from the Planning and Design Commission, proposed allowing cannabis businesses located outside the 600-foot buffer from “sensitive use” sites to seek administrative use permits. That faster process removes a public hearing and the “call-up provision” for council members.
“Council would not have the opportunity to shape the project in any way,” said Deputy City Attorney Kourtney Burdick.
The proposal also would have allowed dispensaries within 600 feet of some sensitive uses — including parks, community centers, libraries, museums and youth facilities — to apply for a conditional use permit. Dispensaries are not currently allowed in these areas. A non-negotiable 600-foot buffer for K-12 schools would have remained in place for all cannabis land uses.
Another component centered on cannabis consumption lounges, which the council agreed to explore almost exactly a year ago. The proposal would have deemed it necessary that all cannabis consumption lounges obtain a conditional use permit and be within a storefront dispensary.
Last year, when the council narrowly passed an ordinance for cannabis lounges, the city estimated permits would be issued in summer 2025. City spokesperson Julie Hall said on Tuesday staff that expected the first lounges to open in spring 2026 if the proposed regulations were approved.
As of this month, Sacramento County has only one operational cannabis lounge: Delta Boyz in Isleton. More than a dozen jurisdictions in California allow some form of permitted consumption.
Tuesday’s discussion featured a range of perspectives from public speakers and council members. Some people in opposition, including faith and youth leaders, urged the elected body to include additional sensitive use buffers for churches, dispensaries and day care centers.
“Give us a buffer,” said Pastor Ronnie Walton. “That’s all we’re asking for. Don’t ignore us again.”
Others, many of which owned Sacramento cannabis businesses, supported the new ordinance and called it long overdue to help an industry that provides millions of dollars in funding to the city each year.
“We stand before you trying to grow our businesses,” said Maisha Bahati, CEO of Crystal Nugs.
This story was originally published November 19, 2025 at 5:00 AM.
