NOTICE OF PUBLIC HEARING Sacramento City Council City Hall Council Chamber 915 "I" Street, 1st Floor, Sacramento, CA 95814 www.cityofsacramento.gov/ Instructions for accessing and participating in the meeting will be posted along with the meeting agenda by close of business Thursday, February 19, 2026. To access this information, please visit https://meetings.cityofsacramento.org and choose "Upcoming Meetings" and then select the appropriate meeting to access the agenda material. The City also posts meeting agendas at City Hall. Members of the public are encouraged to submit public comments electronically via eComment through the City's Upcoming Meetings website. Tuesday, February 24, 2026, at 5:00 p.m. Notice Title: Resolution Establishing Business Operating Permit Fees for Cannabis Consumption Lounges Location (of project): Citywide Project Description: Conduct a public hearing and upon conclusion, adopt a Resolution establishing two business operating permit fees for Type 1 (Non-smoking Consumption) and Type 2 (All Consumption) cannabis consumption lounges. Environmental Determination: This action is exempt from the California Environmental Quality Act (CEQA) because it is the adoption of an ordinance, rule, or regulation that requires discretionary review, including environmental review, and approval of permits, licenses, or other authorizations to engage in commercial cannabis activity and because it does not have the potential for causing a significant effect on the environment ((California Business and Professions Code section 26055(h), CEQA Guidelines section 15061(b)(3)). Prior Commission/Committee/Director Action: • On September 19, 2023, the Law and Legislation Committee (Committee) directed OCM staff to develop a pilot framework for cannabis social consumption lounges. • On May 21, 2024, staff provided an informational update to the Committee regarding a framework for consumption lounge business operating permits with preference to CORE storefront dispensaries. The Committee provided direction to return with a framework to allow consumption business operating permits for all storefront dispensaries. • On September 17, 2024, staff presented a cannabis consumption business operating permit framework to the Committee. The Committee forwarded the pilot program concept for social consumption to City Council for consideration but requested a City Council workshop soliciting the expertise of public health experts regarding cannabis consumption statewide public health trends prior to Council consideration of social consumption. • On October 22, 2024, the City Council heard presentations from public health experts discussing statewide public health trends and secondhand smoke in dispensaries. • On November 19, 2024, the City Council adopted an Ordinance 2024-0044 amending Title 5 concerning business regulations for cannabis consumption lounges with the direction to return with an ordinance addressing the geographical inequities of consumption lounges across Council districts, as well as the ability for call-up review process for cannabis consumption lounges. • On April 8, 2025, the Committee forwarded an ordinance limiting the number of lounges per district to address the geographical inequities and removing the call-up review process of cannabis businesses so that it will occur earlier in the overall process through the conditional use permit process. • On September 16, 2025, the City Council adopted Ordinance 2025-00916 relating to the call-up provision in Title 5 and adopted Resolution 2025-0252, a "First-In-Line" process to authorize a storefront cannabis dispensary permittee to operate a cannabis consumption lounge. A detailed staff report for this item will be published on the City of Sacramento website by close of business on Thursday, February 19, 2026, at the link noted above. For further information on this matter, please contact: Al Romero-Gibu, Cannabis Manager, (916) 808-4772, aromerogibu@cityofsacramento.org, Office of Cannabis Management This notice is being delivered in the matter required by: California Government Code sections 6062(a) and 66018. If you challenge the proposed action in court, you may be limited to raising only those issues you or someone else raised at the Public Hearing described in this notice or in written correspondence delivered to City Council at or prior to the Public Hearing. Further information may be obtained from the Office of the City Clerk at (916) 808-7200. /s/ Mindy Cuppy City Clerk IPL0314110 Feb 13 2026