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DISTRIBUTION

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

1. A LOCATION

a) in a zone which allows cannabis cultivation uses, including

  • 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)

 

b) with a Conditional Use Permit (CUP) for production

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

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.

Please note that as of April 15, 2021, the 2.5 sq. ft. cap for cultivation and distribution in the Southeast Industrial Area/Power Inn Alliance/District 6 has been reached. 

Click here to check if a property has a CUP .

 

2. A BUSINESS OPERATING PERMIT for the appropriate distribution activity and size according to annual gross receipts, namely:

  • 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.

  • 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

  • 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 required to have a designated distribution premise separate from its manufacturing premises. 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.

  • 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. 

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.

 

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 an application for a BOP.

Due to Covid-19, the OCM counters are currently closed.  All applications must be submitted through the OCM online portal.  View the 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
    • Motor Carrier Permit
    • Distribution Vehicle Information
  • Background Check (Live Scan) for all interested parties. For delivery operations, drivers are considered as interested parties and required to pass a background check.

*Waived for CORE applicants.

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

After CUP is approved and while BOP application is in process, proceed to step 3.

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

Due to Covid-19, the Building Department counters are currently closed.  All building department applications must be submitted online.  Please visit the Building Department and select appropriate service you need.  For more application on building permit requirements, please click here .   

 

Step 4:  State License – Bureau 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.  BOP walk-thrus are conducted by the Sacramento Police Department, Code Enforcement and OCM on Wednesdays only.  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).    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 to apply for a State license.