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Record of Proceedings

Law and Legislation Committee Special Meeting on Cannabis Onsite Consumption - August 30, 2022

Law and Legislation Committee — Tuesday, August 30, 2022
BodySacramento, California
SessionLaw and Legislation Committee
DateTuesday, August 30, 2022
StatusFILED
Video Record
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Transcript — Verbatim
0:10

Maybe you want to do that.

0:27

All right, let's go ahead and call this meeting of the law and legislation committee to order.

0:32

Um, as we're getting started, I just want to let people know this is a hybrid meeting.

0:37

Uh, we have three council members in the chamber, and we will have presentations coming from around the state of California.

0:45

So uh let's go ahead and call the role to establish the quorum, and then we'll get started with the land acknowledgement and the pledge.

0:52

Thank you, Chair.

0:53

Councilmember Gatta will be absent today.

0:55

Um, Councilmember Harris.

0:57

Councilmember Valenzuela.

0:58

Here and Chair Shane.

1:00

I am here.

1:00

Uh Councilmember Velenzuela, if you'll leave us in the land acknowledgement and the pledge, that would be good.

1:06

Thank you.

1:06

Please rise for the opening acknowledgments in honor of Sacramento's Indigenous People and Tribal Lands to the original people of this land, the Nissanon people, the Southern Maidu, Valley and Plains, Miwok, Putwin Wintune peoples, and the people of the Wilton Rancheria, Sacramento's only federally recognized tribe.

1:23

May we acknowledge and honor the Native people who came before us and still walk beside us today on these ancestral lands by choosing to gather today in the active practice of acknowledgement and appreciation for Sacramento's Indigenous People's History Contribution and Lice.

1:36

Thank you.

1:37

And now salute and pledge.

1:39

I pledge allegiance to the five of the United States of America.

1:43

And to say one nation.

1:51

Thank you.

1:52

Thank you very much.

1:53

Um we have uh two items today, our log and then uh the discussion calendar.

2:00

So let's start with the log and see if we can dispense with that.

2:04

Uh questions or comments or motion.

2:10

Okay, I have a motion and a second.

2:13

Please call the roll.

2:14

Thank you.

2:15

And Chair, I show no hands raised to make public comment on this item, and I have no one in chambers to make comments.

2:19

Councilmember Garrett is absent.

2:21

Councilmember Harris.

2:22

Aye.

2:22

Councilmember Valenzuela.

2:24

Yes.

2:24

And Councilmember Shaneer.

2:25

Hi, thanks very much.

2:28

Okay, the main event that we're doing today is to start a discussion about cannabis on site consumption.

2:34

Uh, this was requested by Councilmember Valenzuela, so thank you for bringing this here.

2:39

Um, and we have uh folks from around the state who have been doing this.

2:44

This is not an action item today.

2:46

This is really to get us a little bit smarter about what's going on and the experiences that others are having with this type of uh activity.

2:56

So, Davina, uh, I'm gonna turn it over to you wherever you are.

3:01

And uh and uh have you lead us through this uh through this workshop.

3:09

Thank you very much.

3:10

I appreciate that.

3:11

Um so I am Davina Smith, and I am the cannabis manager for the City of Sacramento's Office of Cannabis Management.

3:18

I do want to thank the law and legislation chair and the committee today for holding this special meeting on this topic.

3:23

Um, and I want to thank Zara Cruz in my office for putting together just a really stellar panel of cannabis regulators from jurisdictions that have decided to allow on-site consumption.

3:33

In speaking with our uh potential panelists, we did ask them to speak on their jurisdictions on-site consumption regulations, community concerns around on-site consumption, and how the jurisdictions attempted to address those with the regulations.

3:47

Any insights on revenue from on-site consumption, whether there were significant differences between regulating on-site consumption in lounges or cafes versus on-site consumption at events, uh, any enforcement challenges that they have encountered and or overcome, hopefully, um, and any insights and lessons learned that could help um guide us as we think about whether this is something that we are interested in or not.

4:12

Uh so after the panelists have had a chance to speak today uh on these issues.

4:16

I'll turn this item back to the committee for any questions, uh any public comment.

4:20

And if the committee has any further direction for staff, um uh we're happy to take that uh regarding on-site consumption.

4:27

Um with that, I'll start the introduction of our great panel.

4:32

Uh, from the city of Palm Springs, we have Veronica Goldhardt.

4:35

Uh, she's the director for the Department of Special Program Compliance, overseeing the licensing and compliance of cannabis businesses in Palm Springs.

4:43

She began her career with the City of Palm Springs in 2016 with the City Attorney's Office, where she played an integral role in the development and implementation of the city's recreational cannabis regular uh network.

4:54

Um, she's an active member of the Coachella Valley Cannabis Alliance Network and the Cannabis uh California Industry Association.

5:02

She enjoys watching the success of cannabis entrepreneurs in the city of Palm Springs and working with the public to educate and answer questions about the nascent cannabis industry.

5:13

Following her, we will have the City of West Hollywood and John Leonard.

5:17

He's been with the city since 2012 as the revenue manager and the community and legislative affairs manager.

Discussion Breakdown — Share of Meeting
Cannabis Regulation█████████████████████████████████████████████80%
Public Safety██████11%
Public Comments███5%
Public Health█2%
Procedural█1%
Tourism Management█1%
Summary of Proceedings

Law and Legislation Committee Special Meeting on Cannabis Onsite Consumption - August 30, 2022

The Law and Legislation Committee held a special meeting on August 30, 2022, from 1:00 p.m. to 2:12 p.m. The primary focus was a workshop on cannabis onsite consumption, featuring presentations from regulators in Palm Springs, West Hollywood, San Francisco, and Oakland. The committee also approved the consent calendar and provided direction to staff for developing a framework on potential regulations.

Consent Calendar

  • Law and Legislation Log (File ID: 2022-01583): Passed a motion to approve. (Motion: Harris/Valenzuela; Yes: Harris, Valenzuela, Schenirer; Absent: Guerra)

Public Comments & Testimony

  • Richard Miller (Americans for Safe Access): Expressed full support for consumption lounges as a safe space for medical patients to learn about cannabis, urging the committee to avoid a 30-minute limit like San Francisco and to allow modalities like yoga and massage therapy.
  • Maisha Bahati (Crystal Nuggs): Supported lounges, noting challenges hosting events at Cal Expo due to cost and lack of streamlined process. Encouraged the city to consider alternative locations or lounges to compensate for event limitations.
  • Kevin Hooks: Suggested requiring waivers for patrons to agree not to drive after consumption, supporting ride-sharing. Advocated for flexibility, including partnerships with deliveries, cannabis hotels, and massage parlors to boost tourism.
  • Michael Snell (Social Equity Applicant): Recommended the West Hollywood model over San Francisco’s, citing better safety from longer consumption times. Urged standalone lounges and inclusion of delivery and food options.
  • Malaki Sakou Amen (Institute for More): Questioned why West Hollywood did not intentionally award licenses to those harmed by racialized cannabis enforcement.
  • Kevin McCarty: Supported lounges, emphasizing education, ride-sharing discounts, and social equity built into criteria. Favorably noted co-location of food, music, and yoga. Advocated for eventual alcohol integration but not yet.
  • Jay (Gerard Johnson, License Holder): Asked the city to consider standalone lounges to allow equity applicants to participate, warning that attaching lounges only to storefronts would exclude many. Referenced the EPS study showing low crime impact of cannabis businesses.

Discussion Items

  • Workshop on Cannabis Onsite Consumption (File ID: 2022-01523): Staff presented a panel of regulators from Palm Springs, West Hollywood, San Francisco, and Oakland. Key points:
    • Palm Springs (Veronica Goldhardt): 11 lounges attached to dispensaries; no caps led to saturation and struggling businesses; odor control and security funded by licensing fees; average tax revenue from lounges slightly less than dispensaries.
    • West Hollywood (John Leonard): 20 locations with diverse lounge types (full smoking, edible-only with ancillary smoking); merit-based selection of applicants; strict odor and security conditions; challenges include state restrictions on sales after 10 p.m. and inability to sell non-cannabis food/drink on site, but workarounds exist via adjacent restaurants; lounges integrate with tourism and generate significant revenue.
    • San Francisco (Douglas Obana): 12 lounges attached to dispensaries; three types of permits (A: prepackaged edibles, B: minimal prep, C: smoking/vaping); strict ventilation (negative pressure, MERV 11 filters, odor mitigation) costing up to $250,000; zero complaints on odor or noise; most lounges are free to use, with only two membership-based.
    • Oakland (via Greg Minor, reported by staff): No lounges currently operating; permitted lounges require attachment to retailer; soon considering standalone lounges; anti-impaired driving plans required; only one post-pandemic event.
  • Committee Deliberation: Councilmember Valenzuela favored capping on-site sales, requiring waivers, and protecting operators via civil liability provisions. She supported starting with lounges linked to existing delivery/retail licenses and expanding events. Councilmember Harris raised public safety concerns about lack of a cannabis sobriety test, questioning how business owners could determine intoxication and liability. Chair Schenirer proposed an incremental approach: staff to develop a framework of options (not a full ordinance) within about 45 days, followed by community outreach. Assistant City Manager Laney Millstein confirmed priority on licensure revisions and noted that the framework would be developed alongside ongoing zoning work.

Key Outcomes

  • Consent Calendar: Approved (3-0).
  • Direction to Staff: Develop a framework for cannabis onsite consumption, including options for:
    • Security measures
    • Standalone vs. attached-to-dispensary lounges
    • Events outside Cal Expo
    • Medical/wellness lounges (e.g., spa, yoga)
    • Public safety information (sobriety testing, liability for operators)
    • Merit-based licensing considerations
    • Community outreach before drafting an ordinance.
  • Next Steps: Framework to be presented to the committee in approximately 45 days; staff will coordinate with the Planning Commission and other ongoing work.

Meeting Transcript

Maybe you want to do that. All right, let's go ahead and call this meeting of the law and legislation committee to order. Um, as we're getting started, I just want to let people know this is a hybrid meeting. Uh, we have three council members in the chamber, and we will have presentations coming from around the state of California. So uh let's go ahead and call the role to establish the quorum, and then we'll get started with the land acknowledgement and the pledge. Thank you, Chair. Councilmember Gatta will be absent today. Um, Councilmember Harris. Councilmember Valenzuela. Here and Chair Shane. I am here. Uh Councilmember Velenzuela, if you'll leave us in the land acknowledgement and the pledge, that would be good. Thank you. Please rise for the opening acknowledgments in honor of Sacramento's Indigenous People and Tribal Lands to the original people of this land, the Nissanon people, the Southern Maidu, Valley and Plains, Miwok, Putwin Wintune peoples, and the people of the Wilton Rancheria, Sacramento's only federally recognized tribe. May we acknowledge and honor the Native people who came before us and still walk beside us today on these ancestral lands by choosing to gather today in the active practice of acknowledgement and appreciation for Sacramento's Indigenous People's History Contribution and Lice. Thank you. And now salute and pledge. I pledge allegiance to the five of the United States of America. And to say one nation. Thank you. Thank you very much. Um we have uh two items today, our log and then uh the discussion calendar. So let's start with the log and see if we can dispense with that. Uh questions or comments or motion. Okay, I have a motion and a second. Please call the roll. Thank you. And Chair, I show no hands raised to make public comment on this item, and I have no one in chambers to make comments. Councilmember Garrett is absent. Councilmember Harris. Aye. Councilmember Valenzuela. Yes. And Councilmember Shaneer. Hi, thanks very much. Okay, the main event that we're doing today is to start a discussion about cannabis on site consumption. Uh, this was requested by Councilmember Valenzuela, so thank you for bringing this here. Um, and we have uh folks from around the state who have been doing this. This is not an action item today. This is really to get us a little bit smarter about what's going on and the experiences that others are having with this type of uh activity. So, Davina, uh, I'm gonna turn it over to you wherever you are. And uh and uh have you lead us through this uh through this workshop. Thank you very much. I appreciate that. Um so I am Davina Smith, and I am the cannabis manager for the City of Sacramento's Office of Cannabis Management. I do want to thank the law and legislation chair and the committee today for holding this special meeting on this topic. Um, and I want to thank Zara Cruz in my office for putting together just a really stellar panel of cannabis regulators from jurisdictions that have decided to allow on-site consumption. In speaking with our uh potential panelists, we did ask them to speak on their jurisdictions on-site consumption regulations, community concerns around on-site consumption, and how the jurisdictions attempted to address those with the regulations. Any insights on revenue from on-site consumption, whether there were significant differences between regulating on-site consumption in lounges or cafes versus on-site consumption at events, uh, any enforcement challenges that they have encountered and or overcome, hopefully, um, and any insights and lessons learned that could help um guide us as we think about whether this is something that we are interested in or not. Uh so after the panelists have had a chance to speak today uh on these issues.

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