Calif. cities clear cannabis tourism hurdles in recent push

Cannabis lounges are the new frontier of legalization. Many tourists who want to test out adult-use products often find themselves with nowhere to smoke weed legally. Most hotels and accommodations do not allow indoor consumption, but sometimes smoking and vaping are permitted in outdoor spaces. There are some 420-friendly lodgings in certain locales, but not everywhere. Cannabis lounges could bridge this gap between people smoking weed all over the place and tourists having nowhere to try the regional cannabis flower.

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california cannabis lounges
Photo of Mercy Wellness social lounge provided by Mercy Wellness

Governor Gavin Newsom signed a bill last year that allowed states and counties to license and regulate cannabis lounges. This opens the door for a social space where people can light up a joint, rip a bong, vibe out on a gummy, or whatever form of cannabis they enjoy. There were previously social clubs in Los Angeles and San Francisco. Still, the movement is hitting all-new must-see California destinations.

Summer vacations often center on the beautiful old-growth forests, pristine coastlines, big cities, and rural towns of California. The state is also home to some of the best sun-grown and indoor cannabis in the world. With a steady stream of visitors and top-notch weed off most highway exits, many have been waiting for cannabis tourism to pop off–but it has been an uphill battle.

The first North Bay lounge is now open in Cotati, just west of the iconic Napa Valley. Mercy Wellness soft-opened last week and is off to a strong start, CEO Brandon Levine told GreenState.

“Our soft launch and early access saw a great turnout over the three days we were open,” Levine said. “It’s been a fantastic opportunity to get out there, test our operations, and work out the kinks for an even smoother experience as we move forward.”

As they move forward with doors open, other localities are starting the bureaucratic process to do the same. The Sacramento City Council approved a cannabis lounge pilot program in a five-to-four vote in late 2024. After four months, the lounges are yet to open, but people are buzzing with anticipation.

Cannabis lounges are going statewide

Maisha Bahati, co-founder and CEO of dispensary Crystal Nugs, has pursued a lounge license since it was an option and updated GreenState.

“The process is moving through the final steps with our city council; the planning commission is adding the ordinances for the lounge pertaining to where lounges can be located within sensitive uses,” Bahait said.

Sensitive uses include proximity to K-12 schools or faith-based institutions, which is already a regulation for most dispensaries.

These decisions will go to a committee vote next week, and if approved, the city council will vote on the land use regulations in mid-May. Those who are in sensitive use areas, like Crystal Nugs, will need to apply for a conditional use permit.

The Office of Cannabis Management will also conduct a study to determine how much the program will cost Sacramento before licensing begins. Bahati expects to apply in the Summer of 2025. Meanwhile, Santa Cruz cannabis shops are embarking on a similar journey.

On the Central California coastline, the Santa Cruz County Board of Supervisors voted on lounge laws last month. Their pilot program will allow current dispensaries to apply for licenses, provided they are outside city limits in unincorporated Santa Cruz County. The law will also allow farmers to sell products directly to consumers at county-approved tours.

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There are 11 eligible dispensaries in unincorporated Santa Cruz, four of which have been vocal at County Board meetings throughout the approval process. The Board estimates it will take about a year of ironing out regulations and licensing before any lounges open.

Justin Hoppin, Santa Cruz County public information officer, explained via text message that “It’s going to be a process for the dispensaries.”

Interested dispensaries will need to implement County-code-level air filtration to be considered. Board members also cited fail-safes for overservice, including lost licensure for establishments that overserve patrons. The Board is adamant that monitoring lounges would not cost taxpayers but has not yet created a plan to enforce the safeguard.

As some wait, others rejoice at grand openings

Down south in San Diego, Sessions By The Bay is preparing to make history as the first lounge to open in the beach destination. With many California dispensaries struggling, this could be a a lifeline for those persevering through the struggle of pioneering a brand-new industry.

Cannabis journalist and strategist for San Diego Magazine, Jackie Bryant, expressed hope that this move marks a new era for weed tourism in the city. She shared with GreenState that the waterfront lounge is next to a massive resort, a potential boon for the culture.

“It opens the door to a kind of cannabis tourism we just haven’t had here aside from people purchasing from dispensaries,” Bryant said. “People want to consume socially like they would a boozy drink or coffee. This gives them that option, finally.”

Sessions by the Bay is expected to hold a weekend-long grand opening from April 18th to 20th. Meanwhile, Mercy Wellness social lounge is finding its feet after a successful soft opening up north.

The Cotati business has seen a solid mix of new potential regulars and those coming out for a one-time special occasion. They are still gauging the vibe and testing the waters with events like an upcoming 420 carnival-like party.

The dispensary and social club will host an ever-evolving calendar of events ranging from comedy to theme trivia. Eventually, they will finish construction on the 6,000-square-foot outdoor deck to accommodate big parties and gatherings.

There is a lot to celebrate; Mercy has been on a mission to normalize cannabis since opening in 2010. This feels like a relevant next step to success.

“We recognize that pioneering this model means taking on significant hard work, but we’re ready to meet those challenges head-on,” said Levine. “This endeavor is a key step in our ongoing journey, one we started in 2010, to normalize cannabis.”

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California lounges could set off weed tourism

Normalizing cannabis consumption has been the goal for many longtime weed advocates; the ability to enter a swanky club and light up with friends marks a big step in this endeavor. While those in San Francisco and West Hollywood enjoy their mocktails and small bites alongside their favorite strains, those in other locales are following every meticulous step to do the same. In the next few years, as lounges come online from Northern to Southern California, the country may see what cannabis tourism could be.

Cara Wietstock is senior content producer of GreenState.com and has been working in the cannabis space since 2011. She has covered the cannabis business beat for Ganjapreneur and The Spokesman Review. You can find her living in Bellingham, Washington with her husband, son, and a small zoo of pets.


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