CITY COUNCIL STAFF REPORT
DATE: SEPTEMBER 9, 2026 CONSENT CALENDAR
SUBJECT: SECOND READING AND ADOPTION OF ORDINANCE NO. 2121 OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING CHAPTER 5.55 OF
THE PALM SPRINGS MUNICIPAL CODE REGARDING CANNABIS
CONSUMPTION LOUNGES
FROM: Scott C. Stiles, City Manager
BY: Special Program Compliance
SUMMARY:
This agenda item is for the second reading of an Ordinance amending Chapter 5.55 of the Palm Springs Municipal Code (“PSMC”) related to cannabis consumption lounges consistent with Assembly Bill 1775 (“AB 1775”).
RECOMMENDATION:
Waive the second reading of text in its entirety, read by title only, and adopt Ordinance No. 2121, “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING CHAPTER 5.55 OF THE PALM SPRINGS MUNICIPAL CODE REGARDING CANNABIS CONSUMPTION LOUNGES.” BACKGROUND:
On July 8, 2026, Ordinance No. 2121 was introduced for first reading as noted below.
Waive the reading of text in its entirety, read by title only, and introduce for first reading an Ordinance entitled, “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING CHAPTER 5.55 OF THE PALM SPRINGS MUNICIPAL CODE REGARDING CANNABIS CONSUMPTION LOUNGES”.
AYES: Councilmembers Bernstein, deHarte, Garner, Mayor Pro Tem Ready, Mayor Soto.
NOES: None.
ABSENT: None.
City Council Staff Report
September 9, 2026 -- Page 2
Second Reading of Ordinance No. 2121 Amending Chapter 5.55 – Cannabis Consumption Lounges STAFF ANALYSIS:
At the July 8 Council meeting, Council voted to introduce Ordinance No. 2121, subject to certain revisions which were made at the time of first reading. The revisions were:
PSMC Section 5.55.500, subdivision (C) is amended by adding and removing language from the following sentences: “Cannabis lounges may host outdoor special events by submitting written verification of the steps that it will take to comply with applicable rules governing the event, completing an application through the Department of Special Programs and shall comply with all applicable conditions of approval, public safety requirements, and nuisance mitigation standards established by the City to operate said events. Cannabis lounges located directly adjacent to a site that sells primarily alcoholic beverages, tobacco, or tobacco products on the site may not operate outdoor events with a land use permit.
PSMC Section 5.55.580, subdivision (A) is amended by removing language from the following sentence: “No person shall consume cannabis or cannabis products at a cannabis lounge in any area other than within the authorized portions of a licensed cannabis consumption lounge., or as authorized by a land use permit.
PSMC Section 5.55.585, subdivision (B) is amended by removing language from the following sentence: “No cannabis consumption lounge operator may sell or provide for free any non-cannabis food or beverages inside the lounge unless such food and beverage does not contain cannabis or alcohol”.
These revisions have been incorporated into the second reading ordinance included as Attachment A.
ENVIRONMENTAL ASSESSMENT:
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 (CEQA Guidelines section 15061(B)(1), California Business and Professions Code section 26055(h)) and because it does not have the potential for causing a significant effect on the environment (CEQA Guidelines section 15061(b)(3)).
ALIGNMENT WITH STRATEGIC PLANNING:
This item aligns with the following City Council Strategic Plan Broad Goal: Economic Development.
City Council Staff Report
September 9, 2026 -- Page 3
Second Reading of Ordinance No. 2121 Amending Chapter 5.55 – Cannabis Consumption Lounges FISCAL IMPACT:
There is no immediate fiscal impact associated with the adoption of the proposed Ordinance. Over time, expanded operational opportunities for licensed cannabis lounges may result in increased sales tax and cannabis tax revenue.
REVIEWED BY:
Acting Director: Patrick Clifford
Assistant City Manager: Teresa Gallavan
City Manager: Scott Stiles
ATTACHMENTS:
A. Ordinance No. 2121