By Rachel Wulff

SACRAMENTO (CBS13) — After investigating a so-called marijuana lounge, CBS13 found the Tahoe Park business has been operating without a license. Neighbors say the lounge was disrupting the quality of life with traffic and noise.

Some neighbors confronted the owner of the lounge, Wayne Rosemond, Tuesday, frustrated about what reportedly goes on behind their closed doors.

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“People are smoking weed, hotboxing, and getting in their car and driving,” said one neighbor.

Rosemond showed CBS13 a document he said was a business license on Tuesday, but we found out it was not. The document he showed was a tax certificate.

“I realize that. I made a mistake,” Rosemond replied.

Rosemond admits the lounge does not have a license yet and said he is working on it. He does have a license for his business next door called CBDepot, which sells over-the-counter oils for external use only. He says he manufactures at the lounge where events are also held, but no alcohol is sold there.

“It’s a lounge -everyone smokes and hangs out like a comedy show tonight. We just chill,” Rosemond said.

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We clarified with Rosemond, asking if there was any marijuana sold in the lounge or if it was only ingested or smoked.

“Ingested yeah, we consume it for sure, but not sold,” said Rosemond.

The problem is that it’s illegal to smoke marijuana in the city of Sacramento outside of the privacy of your own home.

“The state has a regulatory system that does allow for on-site consumption, so i.e. lounges. Sacramento is not there yet. We don’t have those. So any on-site consumption lounges are operating illegally,” said Robert Baca with the Sacramento Cannabis Industry Association.

“I don’t believe that’s true,” Rosemond said when we told him that. “They’re not keeping up with this– the states not moving fast enough. We need infrastructure to tax it and eat it. It needs to be properly taken care of.”

Sales of marijuana in the City of Sacramento can only happen at a licensed dispensary. In Sacramento County, there are no dispensaries, but you can grow up to six plants.

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The City of Sacramento asks residents to file complaints with 3-1-1 if there is a business operating illegally near you.