Cannabis Zoning Laws: What do you need to know?

As we covered in previous posts, finding properly-zoned real estate is one of the most important - and difficult - parts of starting a cannabis business in California. The real estate market in California is competitive already, and so-called “green zone” regulations severely restrict where cannabis businesses are allowed to operate.

Nevertheless, it’s imperative that you find real estate for your business before the city or county application window opens. Competition is simply too fierce to wait until the city announces they are ready to start approving business applications. Plan ahead to find cannabis-ready property with this quick guide on California’s cannabis zoning laws.

California’s Cannabis Zoning Laws

California state regulation SB94 allows the 482 cities and 58 counties in California to regulate land use and zoning in relation to cannabis within their jurisdictions. What this means is that cannabis zoning laws not only vary by location, but also by the type of business activity. For example, cannabis dispensaries will abide by different cannabis zoning laws than cultivators or manufacturers. Note that cities or counties with no legal cannabis activity will not provide zoning information related to cannabis businesses.

As far as growing cannabis, it can be tricky to discern regulations by city and state. Research shows that a slight majority of cities have banned outdoor cannabis gardens, while others have specific home-grow permits that may relate to smaller cannabis businesses as well.

To find a specific zoning law in your area, the Orange County Register has compiled a database of cannabis zoning laws by city and county (last updated June, 2018).

Common Cannabis Zoning Laws

Each city and county customizes their cannabis zoning laws. However, there are a few commonalities that our experts tend to see in many zoning policies. If you’re seeking property, here are some things to keep in mind:

• Look for space that’s at least 1,000 feet away from schools and parks.
• Manufacturers should avoid residential areas.
• Regulations will often limit the number of cannabis businesses permitted in an area; be prepared to share a space with others or pay a premium to be the only cannabis retailer.
• If you do find property, ask for a full property report.These reports show ownership history, land mortgages, or any other restrictions on property use that may hinder your lease.
• Keep in mind not only zoning laws, but environmental concerns. Some counties have regulations around the use and storage of fertilizers, herbicides and pesticides that you may need to account for as a cultivator.  

Green zone regulations may not be announced if a city hasn’t opened their cannabis business applications yet. Regardless, it’s important to stay informed about the city’s ordinances and available commercial property. When the applications do open, be prepared by contacting California Cannabis CPAs and asking how we can help.