City Council approves cannabis consumption lounges for South Lake Tahoe

SOUTH LAKE TAHOE, Calif. - South Lake Tahoe will be able to have onsite consumption lounges in the City's cannabis retail businesses after the Council voted 3-1 to allow them during its Tuesday meeting.

It took three meetings to get to this vote. Mayor Pro Tem John Friedrich said the Council was split before on allowing consumption options, and he thought it was time to bring back the topic with "current knowledge" for consideration.

Mayor Cody Bass must recuse himself from voting since he is the owner of Tahoe Wellness Center, one of the cannabis businesses in South Lake Tahoe.

Before today's vote, those wanting to consume cannabis products had to do so in their residences. Most motels and vacation home rentals, ski resorts, beaches, and some long-term rentals do not allow the smoking of cannabis. Many of the speakers during public comment Tuesday said tourists don't have a place to go to use cannabis, and they are confused as to where to use it. Others said locals wanted a safe place to use, away from kids, or to use where safe and allowed.

Concerns included the Clean Air Act and subjecting staff to unhealthy air for long periods, as well as driving while impaired once leaving the lounges.

California Governor Newsom recently vetoed AB374 which would have allowed jurisdictions to permit certain cannabis retailers to prepare and sell food or drinks that do not contain cannabis in the lounges. It would have also allowed the "host" to sell tickets to live events on their premises.

Newsom vetoed it due to concerns about workplace smoke dangers and suggested the bill's author address that in a new version.

There were also concerns voiced Tuesday about overconsumption, making sure staff would know what to watch for, and steps to take, especially where edibles are concerned as the customer's reaction after taking those could be delayed.

Bass spoke during public comment, saying he had no issues with onsite consumption during the nine years his medical marijuana business allowed it per regulations at the time.

One caller asked the Council to pause their decision until impairment tests are solid. She asked they wait until the science catches up, and their decision should be more "than tourists who are looking for a place to get stoned."

South Lake Tahoe Police Chief David Stevenson said his officers attend POST-certified drug DUI training, as well as alcohol DUI training.

Sentiments were shared that if the public could buy cigarettes and alcohol at multiple locations, and drink at several locations, so why shouldn't cannabis be treated the same?

If one of the currently permitted cannabis retailers wants to put in a consumption lounge and their retail area needs to be expanded to accommodate the change, their current cannabis permits will need to be adjusted.

If a business wants to add the consumption lounge, they must:
- Must have a state license as a cannabis retailer or microbusiness with a retail component
- Access must be restricted to customers aged 21 and up
- No alcohol or tobacco may be sold or consumed on the premises
- Consumption of cannabis cannot be visible from a public place or non-restricted area
- Hours of operation are limited to end by 2 a.m. (consistent with closing time for bars), but sales must end by 10 p.m. as required by state law
- Have a ventilation plan designed to prevent the flow of smoke to all other areas of retail establishment and neighboring businesses and properties
- Plan for adequate security and lighting to protect the safety of patrons
- Measures to prevent loitering in outdoor areas including parking lot
- Employees of the cannabis business must be present in the consumption area at all times
- Employee training on assisting customers to avoid overconsumption of edibles required
- Applicants are required to cut off service to impaired patrons and provide an option for a safe ride home for customers such as a shuttle, taxi, or ride-share service
- Cannabis products ingested, smoked, or vaped in consumption lounges must be purchased on-site

The Council vote also includes a clean-up of the current ordinance, including development agreements and public safety amendments. In 2022, voters approved Measure G, establishing a business and provisions tax. The community benefit fee collected through development agreements is now offset by the amount of the tax. The Measure G tax rate of six percent on retail sales is expected to be consistent with the previous payments.

The current development agreements expire in 2024 and 2025.

Curbside delivery will be also allowed and is covered in the updated ordinance.

Councilmember Cristi Creegan was the lone dissent on the vote. She said Council has always said their votes support locals, and not tourists. It was interesting that so many speakers said to think of the tourists in their comments before the Council.

Tuesday was the first reading of the ordinance and it will be before the council on the consent agenda during their Jan. 23 meeting.

A copy of the ordinance with red lines showing the changes can be found HERE.