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A microbusiness is a vertically-integrated cannabis business in which at least three of the four activities take place in one facility:  cultivation with up to 10,000 sq. ft. of canopy, non-volatile manufacturing, retail (storefront and delivery-only dispensary) and distribution.  To become a microbusiness, you will need a Conditional Use Permit (CUP) and a Business Operating Permit BOP). 

The City Council approved the cannabis microbusiness permit in Sacramento on November 27, 2018.  Cannabis microbusinesses may be approved on a case-by-case basis in the following designated zones:

  • General Commercial (C2) - Under 6,400 sq. ft. (if manufacturing is one of the activities)

  • Heavy Commercial (C4)

  • Light Industrial (M1 and M1S)

  • Heavy Industrial (M2 and M2S)

  • Manufacturing Industrial Park (MIP)

  • Manufacturing Research and Development (MRD)


For a microbusiness with no retail component, you will need a Production CUP, which allows cultivation, manufacturing and distribution uses.  If one of the proposed activities of the microbusiness is retail (storefront or delivery-only), you will need a second CUP for a dispensary.  

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.


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 (BOP) from the Office of Cannabis Management. 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 CUP applications.

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 theBusiness Operating Permit Application and submitting it in person with the associated fees at Revenue Division, 915 I Street Rm 1201, Sacramento, CA 95814.  To pay for your application, please schedule a payment appointment here.

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