The City of Sacramento currently permits the following medical cannabis businesses: cultivation, manufacturing and testing laboratories. With the proper permits, cultivation will be permitted on a case by case basis in the following zones:
- Agricultural A
- General Commercial C-2
- Heavy Commercial C-4
- Light Industrial M-1 and M-1(S)
- Heavy Industrial M-2 and M-2(S)
Cultivation must be within a fully enclosed building not be visible from the public right-of-way. Permits may be issued for three different cultivation types, namely:
- Class A for indoor cultivation of no more than 5,000 sq. ft. of total canopy size
- Class B for indoor cultivation of no more than 10,000 sq. ft. of total canopy size
- Class C for indoor cultivation of no more than 22,000 sq. ft. of total canopy size
Manufacturing, testing laboratories and distribution will be permitted on a case by case basis in the following zones:
- General Commercial C-2
- Heavy Commercial C-4
- Light Industrial M-1 and M-1(S)
- Heavy Industrial M-2 and M-2(S)
- Manufacturing - Industrial Park (MIP)
- Manufacturing - Research and Development (MRD)
Non-storefront dispensaries will be permitted on a case by case basis in the following zones:
- General Commercial C-2
- Heavy Commercial C-4
- Light Industrial M-1 and M-1(S)
- Heavy Industrial M-2 and M-2(S)
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In order to operate a cannabis business in the City, you will need two permits: 1) a Conditional Use Permit (CUP) issued by the City's Planning Division; and 2) a Business Operating Permit (BOP) issued by the City's Office of Cannabis Policy and Enforcement. Testing facilities, as well as small manufacturers (Type N and P manufacturers who make less than $100,000 in gross receipts are except from obtaining a CUP.
CUP applications forms may be picked up from and submitted in person to the Planning Division at 300 Richards Boulevard. BOP application forms may be picked up from the Revenue Division at City Hall on 915 I Street Rm 1201. All applications forms are also available from the Forms page.
A CUP application number (or Final Notice of Decision, if available) is required to submit an application for a BOP. The CUP and BOP applications may be reviewed concurrently, but a BOP will not be issued until a CUP for the cultivation site is issued.
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A Conditional Use Permit (CUP) is a City Planning Division land use permit which must be obtained for the subject property before any cannabis permits can be issued. The CUP process, which includes a public hearing, evaluates the site to determine whether or not marijuana business is an appropriate use of the property, consistent with the City’s General Plan and not detrimental to the public health, safety, convenience, or welfare of persons residing, working, visiting or recreating the in the surrounding neighborhood and will not result in the creation of a nuisance.
A CUP is approved by either the Zoning Administrator or the Planning and Design Commission and involves a public hearing and compliance with the General Plan, Zoning Code, and California Environmental Quality Act (CEQA).
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The proposed use is allowed within the applicable zoning district and complies with all other applicable provisions of the Zoning Code and the City Code;
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The proposed use is consistent with the General Plan and any applicable specific plan;
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The design, location, size, and operating characteristics of the proposed activity would be compatible with the existing and future land uses in the vicinity;
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The site is physically suitable for the type, density, and intensity of use being proposed, including access, utilities, and the absence of physical constraints;
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Granting the permit would not constitute a nuisance or be injurious or detrimental to the public interest, health, safety, convenience, or welfare, or materially injurious to persons, property, or improvements in the vicinity and zoning district in which the property is located; and
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The proposed project has been reviewed in compliance with the California Environmental Quality Act (CEQA).
In addition to the above noted findings, a review authority may also require conditions of approval to address impacts associated with the proposed use.
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You can look up the zoning designation for your property by entering your address at:
http://www.cityofsacramento.org/Community-Development/Planning/Current-Planning/Zoning. You can also send an email to planning@cityofsacramento.org and provide the assessor's parcel number and/or the address of the property.
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No. The registration process does not grant existing cultivators any special priority. All complete applications will be processed on a first-come-first-serve basis.
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Business Operating Permits are valid for one year from the time they are issued and need to be renewed annually. Conditional Use Permits are attached to the property and do not expire as long as the use does not change.
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The fees are calculated based on the administrative and enforcement efforts that will be required to run the City's cannabis program.
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All cannabis businesses are subject to a 4% gross receipts tax.
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There is currently no cap to the number of permits the City will issue. However, this can change due to a number of factors, which may include the availability of land or properties, or the number of existing marijuana businesses in the City.
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The City does not have a limit on the number of cannabis permits a business can hold. However, a business that holds a testing license cannot hold any other cannabis licenses.
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Cannabis cultivation, manufacturing and testing cannot be located within 600 ft of a school that provides instruction in kindergarten or grades 1 through 12. That distance is measured from the property line of the lot on which the school is located to the property line of the lot on which the cannabis business is located, without regard to intervening structures. There is no required minimum distance from parks, but if a cultivation or manufacturing site is within 600 ft of a neighborhood park or a community park, the Conditional Use Permit must be approved by the Planning & Design Commission, instead of a Zoning Administrator. The proximity of a cannabis business to a day care centers and youth centers may be considered on a case-by-case basis.
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Greenhouse cultivation is allowed, as long as it is not visible from public right-of-way. The structure must be a detached, single story building with a maximum height of 20 feet measured from grade to the highest roof ridge, and a maximum building area of 5,500 sq. ft.
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Nurseries are currently classified as part of cultivation. To operate a nursery for cannabis plants, you need to obtain a Conditional Use Permit for cultivation.
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No, you only need one CUP if the uses for the buildings are all cultivation.
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A Production CUP is an land use entitlement that covers cultivation, manufacturing and distribution on one property. If you plan on doing any 2 of the 3, or all 3 cannabis activities on one property, you will need to apply for a Production CUP. If you already obtained or in the process of obtaining a CUP for a specific use, and would like to add a second or third use, please call your Planner to modify your CUP application.
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Non-volatile manufacturing, as defined in the City of Sacramento Code is "the production, preparation, propagation and compounding of cannabis and cannabis products, without the use of a volatile solvent. Nonvolatile cannabis manufacturing includes and is not limited to the extraction of a substance from a cannabis plant with nonvolatile solvents, the infusion of mixture of cannabis into another substance, the preparation of an edible item that includes cannabis, and the packaging and labeling of cannabis or cannabis products. Nonvolatile cannabis manufacturing does not include cannabis cultivation."
Volatile solvents, as defined in the State Health and Safety Code are "volatile organic compounds, including: (1) explosive gases, such as Butane, Propane, Xylene, Styrene, Gasoline, Kerosene, 02 or H2; and (2) dangerous poisons, toxins, or carcinogens, such as Methanol, Isopropyl Alcohol, Methylene Chloride, Acetone, Benzene, Toluene, and Trichloroethylene.”
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The City only allows non-volatile manufacturing.
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Tiered manufacturing is a permitting structure that allows smaller manufacturers to apply only for a specific manufacturing type and according to their gross receipts. Please see our manufacturing page for more information on the different tiers of manufacturing.
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No. Commercial cultivation and manufacturing for non-medical purposes is prohibited by State law without a State license. The State does not anticipate issuing licenses until January 2018. Currently, Prop. 64 allows the personal cultivation of up to six living cannabis plants inside a person's private residence.
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Under State law, delivery is a service to be provided only by dispensaries. You cannot operate as a courier or a third party delivery service. Additionally, all delivery drivers must be employees of the dispensary. To qualify for a delivery-only dispensary, you will need a brick-and-mortar location with a Conditional Use Permit. The City is still in the process of drafting an ordinance for delivery-only dispensaries.
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Business Operating Permit fees are listed by business type on our Fees page.
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The Equity Program was adopted by the City Council on November 28, 2017 to create a path for small businesses, women and veteran-owned businesses and minority communities to enter the cannabis industry. It is comprised of the 1) Community Opportunity, Reinvestment and Equity (CORE) program; 2) tiered manufacturing permits; 3) waiver of CUP requirements for certain small manufacturers; and 4) Cannabis Production CUP. A Request for Proposal (RFP) is in the process of being written to hire a consultant who will implement the CORE program. The other components of the Equity Program are already in place.
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