Sections:
Article I. General Provisions
5.150.010 Purpose and intent.
5.150.020 Definitions.
5.150.030 All state and local licenses required.
5.150.040 Cannabis transfer between permitted businesses only.
5.150.050 Permits not transferable.
5.150.055 Transfer of an ownership interest in a storefront cannabis dispensary prohibited.
5.150.060 Diversion.
5.150.070 Interested parties.
5.150.080 Emergency contact manager.
5.150.090 Community relations manager.
5.150.095 Identification badges.
5.150.100 Building design.
5.150.110 Security plan.
5.150.120 Odor control.
5.150.130 Site management.
5.150.140 Reporting of criminal activity.
5.150.145 Consumption of cannabis in violation of the code.
5.150.150 Payment of taxes.
5.150.160 Maintenance of business records.
5.150.170 Service of notices.
5.150.180 Inspection authority.
5.150.185 Cessation of cannabis business operations.
5.150.190 Violations.
5.150.200 Severability.
Article II. Cannabis Business Permit Applications, Procedures, and Appeals
5.150.210 Applications for cannabis business permit.
5.150.220 Application process.
5.150.225 Abandoned applications.
5.150.230 Terms of cannabis business permit; renewal.
5.150.235 Call-up review of cannabis business permit issuance.
5.150.240 Grounds for denial of a cannabis business permit.
5.150.250 Notice of denial.
5.150.260 Grounds for suspending, modifying, or revoking a cannabis business permit.
5.150.270 Notice of suspension, modification, and revocation.
5.150.280 Cannabis business permit appeal fee.
5.150.290 Appeal of denial, suspension, revocation, and nonrenewal.
5.150.300 Appeal hearings.
5.150.310 Conduct of hearing.
5.150.320 Form and contents of decision.
Article III. Storefront Cannabis Dispensaries*
5.150.330 Storefront cannabis dispensary permit required to operate.
5.150.340 Storefront cannabis dispensary fees.
5.150.350 Limit on storefront cannabis dispensary permits.
5.150.355 Prohibition against obtaining more than one ownership interest in a storefront cannabis dispensary.
5.150.360 Storefront cannabis dispensary location - Relocation.
5.150.370 Indoor operations only.
5.150.380 Storefront cannabis dispensary age restrictions.
5.150.390 Operating hours.
5.150.400 Storefront cannabis dispensary site restricted.
5.150.410 Medical cannabis dispensing operations.
5.150.415 Cannabis accessories.
5.150.420 Adult-use cannabis dispensing operations.
5.150.430 Limit on cannabis consumption on site.
5.150.450 Cannabis cultivation prohibited.
5.150.460 Storefront cannabis dispensary buildings.
5.150.470 Storefront cannabis dispensary security.
5.150.480 Signage.
5.150.500 Display of storefront cannabis dispensary permit.
5.150.510 Alcoholic beverages and tobacco.
5.150.525 Delivery of cannabis.
Article IV. Cannabis Cultivation
5.150.530 Cannabis cultivation permit required.
5.150.540 Fees.
5.150.560 Indoor cultivation only.
5.150.570 Cultivation site buildings.
5.150.580 Cultivation site security.
5.150.590 Display of cannabis cultivation permit.
5.150.600 Signs.
5.150.610 Cultivation site restricted.
5.150.620 Juveniles prohibited.
5.150.630 Retail sales prohibited.
5.150.640 Cannabis consumption prohibited.
5.150.650 Alcohol prohibited.
Article V. Cannabis Testing Laboratory
5.150.660 Cannabis testing laboratory permit required.
5.150.670 Cannabis testing laboratory permit program fee.
5.150.690 Indoor testing only.
5.150.700 Cannabis testing laboratory site buildings.
5.150.710 Cannabis testing laboratory site security.
5.150.720 Display of cannabis testing laboratory permit.
5.150.730 Signs.
5.150.740 Laboratory site restricted.
5.150.750 Juveniles prohibited.
5.150.760 Retail sales prohibited.
5.150.770 Cannabis consumption prohibited.
5.150.780 Alcohol prohibited.
Article VI. Cannabis Manufacturing
5.150.790 Cannabis manufacturing permit required.
5.150.800 Cannabis manufacturing permit program fee.
5.150.810 Site of cannabis manufacturing businesses may be shared.
5.150.820 Indoor manufacturing only.
5.150.840 Cannabis manufacturing site buildings.
5.150.850 Cannabis manufacturing site security.
5.150.860 Display of cannabis manufacturing permit.
5.150.870 Signs.
5.150.880 Manufacturing site restricted.
5.150.890 Juveniles prohibited.
5.150.900 Retail sales prohibited.
5.150.910 Cannabis consumption prohibited.
5.150.920 Alcohol prohibited.
Article VII. Delivery-Only Cannabis Dispensary
5.150.930 Delivery-only cannabis dispensary permit required.
5.150.940 Delivery-only cannabis dispensary permit program fee.
5.150.960 Indoor operations only.
5.150.970 Delivery-only cannabis dispensary site buildings.
5.150.980 Delivery-only cannabis dispensary site security.
5.150.990 Display of delivery-only cannabis dispensary permit.
5.150.1000 Signs.
5.150.1010 Delivery-only dispensary site restricted.
5.150.1020 Persons under 21 years of age prohibited.
5.150.1030 Cannabis consumption prohibited.
5.150.1040 Alcohol prohibited.
5.150.1050 Retail sales prohibited on site.
5.150.1060 Medical cannabis dispensing operations.
5.150.1070 Cannabis accessories.
5.150.1080 Adult-use cannabis dispensing operations.
5.150.1090 Delivery of cannabis.
Article VIII. Cannabis Distribution
5.150.1100 Cannabis distribution permit required.
5.150.1110 Cannabis distribution permit program fee.
5.150.1130 Cannabis distribution site buildings.
5.150.1140 Cannabis distribution site security.
5.150.1150 Display of cannabis distribution permit.
5.150.1160 Signs.
5.150.1170 Distribution site restricted.
5.150.1180 Persons under 21 years of age prohibited.
5.150.1190 Retail sales prohibited.
5.150.1200 Cannabis consumption prohibited.
5.150.1210 Alcohol prohibited.
5.150.1220 Storage of cannabis and cannabis products.
5.150.1230 Transportation of cannabis.
Article X. Cannabis Microbusiness
5.150.1270 Cannabis microbusiness permit requirements and limitations.
5.150.1280 Cannabis microbusiness permit program fee.
5.150.1290 Compliance with other cannabis business requirements.
5.150.1300 Storefront cannabis dispensary and cultivation allowed.
5.150.1310 Retail sales permitted.
5.150.1330 Display of cannabis microbusiness permit.
5.150.1340 Signs.
5.150.1350 Modification of cannabis microbusiness permit activities.
Article XI. Cannabis Consumption Lounges
5.150.1360 Cannabis consumption lounge authorization required to operate.
5.150.1370 Cannabis consumption lounge fees.
5.150.1380 Cannabis consumption lounge premise restrictions—generally.
5.150.1390 Cannabis consumption lounge premise restrictions—type 2.
5.150.1400 Cannabis consumption lounge authorization to operate must be displayed.
5.150.1410 Cannabis consumption lounge—type 1 signage.
5.150.1420 Cannabis consumption lounge—type 2 signage.
5.150.1430 Cannabis consumption lounge—health warnings.
5.150.1440 Cannabis consumption lounge—parking area signage.
5.150.1450 Cannabis consumption lounge—waste containers.
5.150.1460 Cannabis consumption lounge operating hours.
5.150.1470 Cannabis consumption lounge age restriction.
5.150.1480 Cannabis consumption lounge personnel requirements.
5.150.1490 Consumption of cannabis and cannabis products on site.
5.150.1500 Cannabis consumption lounge—prepackaged food and beverages.
5.150.1510 Cannabis consumption lounge—customer conduct.
5.150.1520 Repeal of article.
* Prior ordinance history: Ords. 2016-0051, 2017-0021, 2017-0022 and 2017-0031.
It is the purpose and intent of the city council to regulate cannabis businesses consistently with state law and implement strong and effective regulatory and enforcement systems to protect the health, safety, and welfare of the residents of the city. The regulations in this chapter do not interfere with any person's right to obtain and use cannabis as authorized under state law, nor do they criminalize the possession or cultivation of cannabis contrary to state law. Cannabis businesses shall comply with all provisions of the Sacramento City Code, state law, and all other applicable local codes and regulations. It is neither the intent nor the effect of this chapter to condone or legitimize the illegal use or consumption of cannabis under federal, state, or local law. (Ord. 2017-0046 § 1)
As used in this chapter:
"Cannabis" has the same meaning as in California Business and Professions Code section 26001.
"Cannabis, adult-use" means cannabis or cannabis products intended to be sold for use by adults 21 years of age and over who do not possess a physician's recommendation for the use of cannabis issued in accordance with the Compassionate Use Act of 1996 (California Health and Safety Code section 11362.5).
"Cannabis, medical" means cannabis or cannabis products intended to be sold for medical use by persons who possess a physician's recommendation for the use of cannabis issued in accordance with the Compassionate Use Act of 1996 (California Health and Safety Code section 11362.5).
"Cannabis accessories" has the same meaning as in California Health and Safety Code section 11018.2.
"Cannabis business" means a business subject to the permit requirements of this chapter.
"Cannabis business permit" means any permit issued to a cannabis business pursuant to the provisions of this chapter.
"Cannabis consumption lounge" or "lounge" means an area on any property, other than in a private residence or at an event held pursuant to section 5.150.360.C, where cannabis or cannabis products are consumed; or any private residence where cannabis or cannabis products are allowed to be consumed for commercial gain.
"Cannabis consumption lounge operator" means a storefront cannabis dispensary permittee who is authorized to operate a cannabis consumption lounge in accordance with this chapter.
"Cannabis cultivation business" means a business cultivating cannabis, including a cannabis nursery.
"Cannabis dispensary, delivery-only" means a business selling cannabis or cannabis products only by delivery, not by completing the transfer in a building or structure that is open to customers or elsewhere on the dispensary site.
"Cannabis dispensary, storefront" means a business selling cannabis or cannabis products from a building or structure that is open to customers. A storefront cannabis dispensary does not include the following uses: a clinic licensed pursuant to chapter 1 of division 2 of the California Health and Safety Code; a health care facility licensed pursuant to chapter 2 of division 2 of the California Health and Safety Code; a residential care facility for persons with chronic life-threatening illness licensed pursuant to chapter 3.01 of division 2 of the California Health and Safety Code; a residential care facility for the elderly licensed pursuant to chapter 3.2 of division 2 of the California Health and Safety Code; and a residential hospice or a home health agency licensed pursuant to chapter 8 of division 2 of the California Health and Safety Code, as long as any such use complies with applicable laws including, but not limited to, the Compassionate Use Act of 1996 (California Health and Safety Code section 11362.5), the Medical Marijuana Program Act (California Health and Safety Code section 11362.7 et seq.), the Medicinal and Adult-Use Cannabis Regulation and Safety Act (California Business and Professions Code section 26000 et seq.), and the Sacramento City Code.
"Cannabis distribution business" means a business procuring, selling, and transporting cannabis and cannabis products between cannabis businesses.
"Cannabis identification card" has the same meaning as "identification card" in California Health and Safety Code section 11362.7.
"Cannabis manufacturing business" means a business producing, preparing, propagating, or compounding cannabis and cannabis products. Cannabis manufacturing business includes businesses involving the extraction of a substance from a cannabis plant, the infusion or mixture of cannabis into another substance, the preparation of an edible item that contains cannabis, and the packaging and labeling of cannabis or cannabis products. Cannabis manufacturing business does not include a cannabis cultivation business.
"Cannabis microbusiness" means a business that engages in activities of three or more of the following cannabis businesses on the same site: manufacturing, distribution, storefront dispensary, delivery-only dispensary, or cultivation (provided that the cultivation area is less than 10,000 square feet).
"Cannabis nursery" means a business that produces clones, immature plants, seeds, or other agricultural products used specifically for the planting, propagation, and cultivation of cannabis.
"Cannabis product" has the same meaning as in California Health and Safety Code section 11018.1.
"Cannabis testing laboratory" means a business performing scientific analysis of cannabis or cannabis products to determine chemical profile, presence of contaminants, or other similar data.
"Canopy" has the same meaning as in section 8000 of title 3 of the California Code of Regulations.
"CBC" means the California Building Code.
"CEC" means the California Electrical Code.
"CFC" means the California Fire Code.
"City manager" means the city manager or designee.
"CMC" means the California Mechanical Code.
"Conditional use permit" means a conditional use permit issued by the city pursuant to the Planning and Development Code.
"CPC" means the California Plumbing Code.
"Cultivate" means to plant, grow, harvest, dry, cure, grade, or trim cannabis. "Cultivation area" means the area in which cannabis is cultivated.
"Deliver" means to physically move any item from a cannabis business to a person other than another cannabis business.
"Hold-up alarm" means a silent alarm that alerts a monitoring company that criminal activity is in progress and causes the dispatch of law enforcement.
"Juvenile" means any natural person who is under the age of 18 years.
"Limited liability company manager" means a person that, under the operating agreement of a manager-managed limited liability company, is responsible for performing the management functions stated in subdivision (c) of California Corporations Code section 17704.07.
"Manager" means a person who participates in the direction, control, or management of a cannabis business.
"Member" means any qualified patient, primary caregiver, or person with a cannabis identification card who is registered with a cannabis business.
"Ownership interest" means all forms of legal or beneficial ownership including the following: stock, partnership, limited liability company, joint tenancy, leasehold, proprietorship, trust, beneficiary, proxy, power-of-attorney, option, warrant, and any other interest that evidences ownership or control, whether direct or indirect.
"Person with a cannabis identification card" has the same meaning as "person with an identification card" in California Health and Safety Code section 11362.7.
"Physician" has the same meaning as in California Business and Professions Code section 4039.
"Primary caregiver" has the same meaning as in California Health and Safety Code section 11362.7.
"Private medical records" means records related to the medical history of a qualified patient, but does not include the recommendation of a physician for the medical use of cannabis, the designation of a primary caregiver by a qualified patient, or a cannabis identification card.
"Qualified patient" has the same meaning as in California Health and Safety Code section 11362.7.
"Qualified professional" means a person who holds a valid private patrol operator license under California Business and Professions Code section 7582, a valid alarm company operator license under California Business and Professions Code section 7593, a valid certificate from the American Society for Industrial Security International, or equivalent licensure or certification.
"Reasonable compensation" means compensation commensurate with wages and benefits paid to officers and employees of other not-for-profit organizations who have similar job descriptions and duties, required level of education and experience, prior individual earnings history, and number of hours worked.
"Sell" means engaging in any transaction, for any consideration, in which title of an item is transferred from one person to another, and includes delivery and soliciting or receiving orders.
"Site" means the portion of a parcel or parcels of real property upon which a cannabis business is operated.
"Smoking" has the same meaning as in section 8.80.030.
"Staff" means a person other than a manager who works or provides services on the site of a cannabis business, whether as an employee, contractor, or volunteer.
"Transport" means to physically move items between cannabis businesses. Transport does not include delivery.
"Vaping" means to inhale vapor from a device that heats up and vaporizes a liquid or solid.
"Volatile solvent" means a solvent that is or produces a flammable gas or vapor that, when present in the air in sufficient quantities, will create explosive or ignitable mixtures. "Volatile solvent" does not include ethanol when used in a manner that will not create explosive or ignitable mixtures, as approved by the fire chief or designee. (Ord. 2024-0044 § 1; Ord. 2022-0006 § 1; Ord. 2020-0004 § 1; Ord. 2019-0041 § 1; Ord. 2018-0050 § 1; Ord. 2017-0060 § 1; Ord. 2017-0046 § 1)
A. No cannabis business shall operate unless it is in possession of all applicable state and local licenses or permits.
B. Every cannabis business shall submit to the city manager a copy of any and all of its state and local licenses and permits required for its operation.
C. If any other applicable state or local license or permit required for a cannabis business's operation is denied, suspended, modified, surrendered, revoked, or expired, the cannabis business shall notify the city manager in writing within 10 calendar days of the action. (Ord. 2020-0004 § 2; Ord. 2017-0046 § 1)
Cannabis business permits issued pursuant to this chapter are not property and have no value. Cannabis business permits may not be transferred, sold, assigned or bequeathed expressly or by operation by law. Any attempt to directly or indirectly transfer a cannabis business permit shall be unlawful and void, and shall automatically revoke the permit. (Ord. 2017-0046 § 1)
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