CANNABIS MANUFACTURING

Regulations for the manufacturing of cannabis can be found under Title 17 and Title 5 of the Sacramento City Code. To operate a cannabis manufacturing business in the City of Sacramento, you need:

1. A LOCATION

a) in a zone which allows cannabis manufacturing uses, including:

General Commercial (C2) – up to 6400 sq. ft.; non-volatile only
Heavy Commercial (C4)
Light Industrial (M-1, M-1S)
Heavy Industrial (M-2, M-2S)
Manufacturing Industrial Park (MIP)
Manufacturing Research Development (MRD)

b) with a Conditional Use Permit (CUP) for production – unless for small manufacturing (annual gross receipts > $100 K)

c) with a Certificate of Occupancy specific to the cannabis use

Under State law, cannabis businesses require a 600-ft radius buffer zone from schools. The Sacramento City Code requires a 600-ft buffer from neighborhood and community parks. Applications with proposed sites that are within the 600-ft of neighborhood and community parks will be reviewed by the Planning and Design Commission.

View these maps to see where these zones are located in the city. To check if your property is within these zones, enter the address in the Zoning & Property Details field.

Click here to check if a property has a CUP.

2) A BUSINESS OPERATING PERMIT (BOP) for the appropriate type of manufacturing activity:

Type 1 – Extraction: Volatile or Non-Volatile
Type N – Infusion
Type P – Packaging

A Type 1 permit can perform all three manufacturing activities, namely, extraction, infusion and packaging. A Type N permit can infusion and packaging, while a Type can perform packaging only.

Each permit type is also tiered according to the annual gross receipts::

Class A - Up to $100,000
Class B - Up to $1,000,000
Class C - Up to $3,000,000
Class D - Over $3,000,000

NON-VOLATILE MANUFACTURING
Nonvolatile manufacturing includes the use ethanol and C02 in the extraction and extraction process. The use of volatile solvents, defined in the State Health and Safety Code as "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” requires a Volatile Manufacturing permit.

NON-VOLATILE MANUFACTURING

Nonvolatile manufacturing includes the use ethanol and C02 in the extraction and extraction process. The use of volatile solvents, defined in the State Health and Safety Code as "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” requires a Volatile Manufacturing permit.

VOLATILE MANUFACTURING
New applicants who currently do not hold a Cannabis Production Conditional Use Permit (CUP) must first submit a CUP application. After receiving a CUP file number (Z# or P#), the applicant can then submit an application for a BOP to OCM. Existing manufacturers who wish to add or convert their manufacturing operations to a volatile system must apply for a minor modification to their CUP.

SHARED MANUFACTURING
Two or more manufacturing businesses may use the same manufacturing premises under the applicable provisions of the State's Shared Use Manufacturing regulations and Title 5.

HOW TO APPLY
Step 1: Conditional Use Permit (CUP) – Planning Division Due to Covid-19, the Planning counters are currently closed. All applications must be submitted through Planning's online portal. If you are a small manufacturer, your location is exempt from a CUP. In lieu of a CUP, you need to obtain a zoning review from the Planning Division. Step 2: Business Operating Permit – Office of Cannabis Management Once you have submitted a complete CUP application, you will receive an application file number (Z file or P file). With this number, you can submit a BOP application with the Office of Cannabis Management (OCM). Due to Covid-19, the OCM counters are currently closed. All applications must be submitted through the OCM online portal. View BOP approval process here. Documents required for the BOP application: Z or P number (CUP application #) Information on Proposed Location Business structure (filing with Sec. of State) Business Plan Security Plan Floor plan/Site Plan Odor Control Plan Copy of Neighborhood Responsibility Plan * Financial Documents General Liability Insurance Community Relations Plan Business Operating Tax (BOT) Certificate Business Operating Permit Fee * Owners Statement of Consent Business-Type-Specific Requirements Extraction plan (for Type 1 only) Signed operating agreement with primary permit holder (for shared manufacturing) Shared use schedule (for shared manufacturing) Background Check (Live Scan) for all interested parties Waived for CORE applicants A description of each requirement can be found in Title 5. To pay for your application, please schedule a payment appointment here. After CUP is approved (or a zoning review is completed for small manufacturers) and while BOP application is in process, proceed to Step 3.* Step 3: Building Permits/ Tenant Improvements and Certificate of Occupancy – Building Department The Building Department's public counters are open by appointment only. All building department applications must be submitted online. Please visit the Building Department online portal and select appropriate service you need. For more information on building permit requirements, please click here. Step 4: State License – Department of Cannabis Control Applying for your State license may also take place before Step 3. However, it is best to take your tenant improvement schedule into consideration to make sure that you have a valid (unexpired) State license as you go into the BOP final review step and/or start operating your cannabis business. Step 5: The Final Review – Office of Cannabis Management After the CofO is issued, contact OCM to schedule a BOP walk-thru ( A walk-thru will not be scheduled until the premises has been issued its CofO). Walk-thrus are conducted by the Sacramento Police Department, Code Enforcement and OCM on Wednesdays only. To help you prepare, please refer to this walk-thru checklist to ensure that requirements are in place and ready for evaluation. The checklist also contains information on what to expect after your walk-thru. During this time, your BOP application goes into final review and you will be required to provide updated information for your application including Certificate of Insurance, interested parties, and any associated background checks. If there are no corrections from the walk-thru and all application documents have been updated, the BOP will be issued.

HOW TO APPLY

Step 1: Conditional Use Permit (CUP) – Planning Division

Due to Covid-19, the Planning counters are currently closed. All applications must be submitted through Planning's online portal.

If you are a small manufacturer, your location is exempt from a CUP. In lieu of a CUP, you need to obtain a zoning review from the Planning Division.

Step 2: Business Operating Permit – Office of Cannabis Management

Once you have submitted a complete CUP application, you will receive an application file number (Z file or P file). With this number, you can submit a BOP application with the Office of Cannabis Management (OCM).

Due to Covid-19, the OCM counters are currently closed. All applications must be submitted through the OCM online portal. View BOP approval process here.

Documents required for the BOP application:

Z or P number (CUP application #)
Information on Proposed Location
Business structure (filing with Sec. of State)
Business Plan
Security Plan
Floor plan/Site Plan
Odor Control Plan
Copy of Neighborhood Responsibility Plan *
Financial Documents
General Liability Insurance
Community Relations Plan
Business Operating Tax (BOT) Certificate
Business Operating Permit Fee *
Owners Statement of Consent
Business-Type-Specific Requirements
- Extraction plan (for Type 1 only)
- Signed operating agreement with primary permit holder (for shared manufacturing)
- Shared use schedule (for shared manufacturing)
Background Check (Live Scan) for all interested parties

*Waived for CORE applicants

A description of each requirement can be found in Title 5.

To pay for your application, please schedule a payment appointment here.

After CUP is approved (or a zoning review is completed for small manufacturers) and while BOP application is in process, proceed to Step 3.

Step 3: Building Permits/ Tenant Improvements and Certificate of Occupancy – Building Department

The Building Department's public counters are open by appointment only. All building department applications must be submitted online. Please visit the Building Department online portal and select appropriate service you need. For more information on building permit requirements, please click here.

Step 4: State License – Department of Cannabis Control

Applying for your State license may also take place before Step 3. However, it is best to take your tenant improvement schedule into consideration to make sure that you have a valid (unexpired) State license as you go into the BOP final review step and/or start operating your cannabis business.

Step 5: The Final Review – Office of Cannabis Management

After the CofO is issued, contact OCM to schedule a BOP walk-thru ( A walk-thru will not be scheduled until the premises has been issued its CofO). Walk-thrus are conducted by the Sacramento Police Department, Code Enforcement and OCM on Wednesdays only. To help you prepare, please refer to this walk-thru checklist to ensure that requirements are in place and ready for evaluation. The checklist also contains information on what to expect after your walk-thru.

During this time, your BOP application goes into final review and you will be required to provide updated information for your application including Certificate of Insurance, interested parties, and any associated background checks. If there are no corrections from the walk-thru and all application documents have been updated, the BOP will be issued.

OTHER NON-CITY REQUIREMENTS
CEQA COMPLIANCE If the City has determined that the project is exempt from CEQA review, applicants can obtain from their planner a completed Notice of Exemption (NOE). The NOE must be filed with these agencies: 1) Sacramento County Clerk, and 2) the State Office of Planning and Research (OPR). The 2019 fee for the County Clerk filing is $40.00. There is no fee for filing with OPR. The applicant must file the notice of exemption in order to obtain a date-stamped copy of the NOE required by the California Department of Food and Agriculture (CDFA) to apply for a cultivation license. COUNTY REQUIREMENTS Any engines utilized to meet power needs for cannabis cultivation only, including those used only on an emergency basis, must be certified by the California Air Resources Board (CARB). Please contact the California Air Resources Board Distributed Generation Certification Program (DG Certification) for more information on obtaining power generation technologies with DG Certification. A cannabis cultivation permittee shall prevent all odors generated from the cultivation and storage of cannabis from escaping from the buildings on the cultivation site, such that the odor cannot be detected by a reasonable person of normal sensitivity outside the buildings. Please contact the Sac Metro Air District (SMAQMD) with any cannabis permitting and registration questions at (279)-207-1122. ~~~ Existing State statute requires any business in Sacramento County that handles or generates certain quantities of hazardous waste to register with and obtain a permit from the Sacramento County Environmental Department. More information can be found at: http://www.emd.saccounty.net/EC/HM/Pages/default.aspx ~~~ Certain cannabis related processes and equipment may require a permit to operate from the Sac Metro Air District (District). These may include power generation devices, cannabis extraction and equipment/surface cleaning processes, boilers, and air pollution control devices, used for cannabis grinding, milling and cutting and associated odors. Please contact the Sac Metro Air District directly for information on District regulations and permitting requirements.

OTHER NON-CITY REQUIREMENTS

CEQA COMPLIANCE

If the City has determined that the project is exempt from CEQA review, applicants can obtain from their planner a completed Notice of Exemption (NOE). The NOE must be filed with these agencies: 1) Sacramento County Clerk, and 2) the State Office of Planning and Research (OPR). The 2019 fee for the County Clerk filing is $40.00. There is no fee for filing with OPR. The applicant must file the notice of exemption in order to obtain a date-stamped copy of the NOE required by the California Department of Food and Agriculture (CDFA) to apply for a cultivation license.

COUNTY REQUIREMENTS

Any engines utilized to meet power needs for cannabis cultivation only, including those used only on an emergency basis, must be certified by the California Air Resources Board (CARB). Please contact the California Air Resources Board Distributed Generation Certification Program (DG Certification) for more information on obtaining power generation technologies with DG Certification. A cannabis cultivation permittee shall prevent all odors generated from the cultivation and storage of cannabis from escaping from the buildings on the cultivation site, such that the odor cannot be detected by a reasonable person of normal sensitivity outside the buildings. Please contact the Sac Metro Air District (SMAQMD) with any cannabis permitting and registration questions at (279)-207-1122.

~~~

Existing State statute requires any business in Sacramento County that handles or generates certain quantities of hazardous waste to register with and obtain a permit from the Sacramento County Environmental Department. More information can be found at: http://www.emd.saccounty.net/EC/HM/Pages/default.aspx

~~~

Certain cannabis related processes and equipment may require a permit to operate from the Sac Metro Air District (District). These may include power generation devices, cannabis extraction and equipment/surface cleaning processes, boilers, and air pollution control devices, used for cannabis grinding, milling and cutting and associated odors. Please contact the Sac Metro Air District directly for information on District regulations and permitting requirements.