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DISTRIBUTION

The City Council approved cannabis distribution in Sacramento at its November 28, 2017 Council meeting.  Cannabis distribution may be approved on a case-by-case basis in the following designated zones:

  • General Commercial (C2) - Under 6,400 sq. ft. 

  • Heavy Commercial (C4)

  • Light Industrial (M1 and M1S)

  • Heavy Industrial (M2 and M2S)

  • Manufacturing Industrial Park (MIP)

  • Manufacturing Research and Development (MRD)

Two types of permit were created, namely a Distribution Center and a Distribution Service. 

On August 9, 2018, the City Council amended the distribution ordinance.  The amendment re-configured the distribution permits to create a tiered permit according to gross receipts.  The square footage requirement associated with distribution types were also eliminated.  The new distribution permit types are as follows: 

1) Type D - a distribution permit involving all functions of a cannabis business distribution business, which may include wholesale, transport between permitted businesses, tax collection and arrangements for testing.  It can be a stand-alone distribution center or operated in conjunction with another cannabis business.  A Type D permittee may store cannabis and cannabis products onsite and the land use requires a conditional use permit (CUP).

The proposed Type D distribution permit fees will be tiered by gross receipts as follows:
D1 - Distribution permits with annual gross receipts of up to $5 million
D2 - Distribution permits with annual gross receipts of up to $20 million
D3 - Distribution permits with annual gross receipts of over $20 million

 

2) Type S (self-distribution) - an add-on distribution permit that will allow small manufacturers currently exempt from the CUP requirement to store and transport their own cannabis products through the supply chain, including dispensaries.  A small manufacturer is defined under Sacramento City Code as a cannabis manufacturer whose operations are limited to infusion or production of edibles and topicals or packaging and labeling with gross receipts under $100,000. 

The self-distribution component of a small manufacturer’s operation is currently required to have a designated distribution premise separate from its manufacturing premises. This is not proposed to change. The small manufacturer with a Type S permit will also be responsible for the other functions of distribution including remitting the taxes to the State and arranging for their cannabis products to be tested by a licensed laboratory. Staff is proposing that the CUP waiver also be extended to the distribution component of their operations.

 

3) Type T (transport-only) - allows a permit holder to move cannabis products through the supply chain without storing, collecting taxes or arranging for testing. A Type T permit can transport products to and from a cultivation, manufacturing and testing laboratory, but cannot transport to a dispensary except when transporting immature plants.  Since this type of permit will not allow for the storage of cannabis products, it is proposed that a CUP for the premise not be required. 

 

Sites must be at least 600 ft. from schools (K-12), and neighborhood and community parks.  Sites that are less then 600 ft. from a neighborhood or community park will require a CUP approval from the Planning and Design Commission instead of the Zoning Administrator. 

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.

HOW TO APPLY

In order to operate a delivery business in Sacramento, you need both a Conditional Use Permit for a brick-and-mortar location from the Planning Division (CUP); and a Business Operating Permit from the Office of Cannabis Policy and Enforcement (BOP). A CUP, or proof of application for a CUP, is required for applying for a BOP.

Step 1: Apply for a Conditional Use Permit

Download the Conditional Use Permit Application. A Neighborhood Responsibility Plan (NRP) Agreement is required for a distribution CUP application.

Applications must be submitted in person at the Planning Division, 300 Richards Blvd. 3rd Floor, Sacramento, CA 95811 between the hours of 9 a.m. and 3 p.m., Monday through Friday. (The office is open until 4 p.m. but applications are not accepted after 3 p.m.)

Step 2: Apply for a Business Operating Permit

Once you have submitted a complete application for a Conditional Use Permit, you will receive an application file number. Once you have this number, you can apply for a Business Operating Permit online or by downloading the Distribution Business Operating Permit Application and submitting it in person with the associated fees at Revenue Division, 915 I Street Rm 1201, Sacramento, CA 95814.  To make an appointment to make a payment, please send an email to marijuanapaymentcalendar@cityofsacramento.org

Please note that applicants (owners, managers, board of directors and any individuals with 20% interest in the business) and all drivers of distribution vehicles are required to go through a background check and get a Live Scan fingerprint in person at the Revenue Division.

FINGERPRINTING REQUIREMENTS

Effective July 1, 2017, LiveScan fingerprinting as part of the background check requirements will be done strictly by appointment only. Please note that fingerprinting is not required at the time of submission of your BOP, but is part of the review and approval process. Therefore, it can be done anytime between the submission of your BOP and after you receive a decision on your Conditional Use Permit (CUP) application. In addition, if you have previously been fingerprinted and have been cleared by the Department of Justice for another cannabis business in the City of Sacramento, you don’t need to be fingerprinted again as part of your new application.

To schedule an appointment, please call the Permits staff at 916-808-5852. LiveScan costs $88/person and is due at the time of your appointment.