Medical Marijuana License Applications are available for the City of Sacramento

Sacramento is accepting applications for marijuana cultivators. Applicants who are interested in obtaining a license to grow marijuana in Sacramento can obtain details from the Office of Cannabis Policy and Enforcement. This office is responsible for creating policies and regulating the Sacramento Cannabis market as well creating and overseeing the application process.

On November 22, 2016, the City Council adopted Ordinance No. 2016-0051. This ordinance outlines the regulations for cannabis cultivation businesses. Under the ordinance, cultivation permits will be issued for three different cultivation permit types:
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• Class A for indoor cultivation of no more than 5,000 sq. ft. of total canopy size
• Class B for indoor cultivation of no more than 10,000 sq. ft. of total canopy size
• Class C for indoor cultivation sites up to 22,000 sq. ft. of total canopy size

The application process is complex and designed to ensure that the city, neighbors, and employees are operating in adherence to the law and safety standards outlined by Sacramento. Individuals should look to hire professionals to draft the site plans, consolidate & write the application, and provide overall project management support to ensure business continuity. Depending on how much construction is required and how big of a cultivation site the applicant intends creating, the application fees can range from ~$17,000 to ~$34,000.  Considering the cost of the permitting process, hiring a professional to manage the project will be a worthwhile investment to mitigate the potential risk of not getting a license.

Applicants who are interested in opening a marijuana business in Sacramento must follow the below steps to obtain a permit. While it appears that the process may be easy, the paperwork required for a full and complete application should be well-written and organized to track all deliverables. 
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• Step One: Find a property that is zoned for cannabis cultivation
• Step Two: Apply for a Conditional Use Permit (CUP)
• Step Three:  Apply for a Business Operating Permit (BOP)
• Step Four: Contact Sacramento County Agricultural Commission
• Step Five: Obtain Background Checks

The Conditional Use Permit and Business Operating Permit applications will be processed concurrently.

Step One: Find a property that is zoned for cannabis cultivation

Applicants must check to see if their property is located in a zone that allows for marijuana businesses to operate. Cultivation will be reviewed on a case by case basis to operate in the following zones:

• Agricultural (A)
• General Commercial (C2)
• Heavy Commercial (C4)
• Light Industrial (M-1 and M-1S)
• Heavy Industrial (M-2 and M-2S

The City of Sacramento has made it easy to see if your property is in an acceptable zone. You can enter the address in the Zoning & Property Details tab to identify the zone of your property. Keep in mind, if you are leasing your property, that the landlord will have to submit a letter indicating that they give you permission to operate a marijuana business in their building. 

​Step Two: Apply for a Conditional Use Permit (CUP)
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In order to operate a cultivation business in Sacramento, you will need both a Conditional Use Permit 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.

You can download the Conditional Use Permit Application. In the application, there is a checklist of items that must be gathered to complete the application. Applicants must also include a Neighborhood Responsibility Plan (NRP) Agreement.

1. Complete the Planning Entitlement Application. All sections of the application must be completed. If a section of the application is not applicable to your project, please write, “Not applicable,” or N/A. Applicants should not write in the staff-only sections of the application. Information on the Design Guidelines Checklist, Neighborhood Responsibility Plan, Neighborhood Context Map, Draft Security Plan, Community Relations Plan and Odor Control Plan are in the application.
2. Submit the Application Fees. Fees are to be paid to the City of Sacramento at the time of application submittal. Fees for conditional use permit and site plan and design review are on pages 9-12.
3. Obtain a Letter of Agency. The Letter of Agency is a form that a property owner signs to allow a representative to file the Entitlement Application for the owner. If you own the property and are also the applicant, you do not need to fill out the Letter of Agency. The form must be wet signed in non-black ink and must be an original, notarized document; not a copy or a scanned document.
4. Write a Project Narrative. Provide a written description of the project being proposed for development. It must include a description of the project and detailed scope of work for which entitlement/review is being requested and how the project will address any potential negative effects on the community. Space for project narrative is provided in the application but it can also be on a separate piece of paper. A Design Concept Narrative is also required for Site Plan and Design Review entitlement.
5. Obtain Full Sized Plans. Provide full sized (24” x 36”), dimensioned development plans (drawn to scale) for all exhibits, folded to 81/2” x 11” size. Please provide the number of sets indicated on the Submittal Matrix on page 2 of this packet.
6. Create a 11” x 17” Plan Reduction. Provide one set of all development plans/exhibits reduced to 11” x 17” size, high quality black & white or color copies. Color copies of exterior elevations (renderings) are required.
7. Provide a PDF of Exhibits. High quality PDF files of all exhibits is required. Files may be submitted on disc with the planning application or may be emailed to the Project Planner when the project is assigned.
8. Submit Sample Color and Materials. Information on proposed color and materials are required for all projects unless the requirement is waived by staff. If actual material samples are provided or requested, those samples will remain with the file as part of the public record. The proposed colors and materials must be specified, rather than simply referenced by, “See Color/Material Board.” Samples must be no larger than an 8 ½” x 11” size. Provide brochure or cut sheets for any proposed new doors, windows, hardware, or fixtures.
9. Provide Site Photographs. Provide printed, color photographs of the site (including all sides of existing buildings) and surrounding properties (including properties next door and across the street). Minimum photo size is 3 x 5 inches. Please refer to, “Guidelines for Photographing Project,” for more information.
10. Provide Streetscape Drawings (if required). Streetscape drawings should show how the new project will appear in the context of surrounding buildings, structures, streetscapes and other relevant parts of the setting.
11. Write a Neighborhood Responsibility Plan. This is a plan to address the adverse impacts of cannabis cultivation on the surrounding area. This requirement may be satisfied with a neighborhood responsibility agreement in which the property owner agrees to either contribute 1% of the gross receipts of the cannabis cultivation businesses on the property or agree to pay a fee that will be established by a development impact fee.

Online applications will not be accepted by the City of Sacramento. 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.)

Online applications will not be accepted by the City of Sacramento. 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 Three: 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. Applicants must use this number, to submit an application for a Business Operating Permit.  This permit shows the city that you have thought through how you will run your business. If you are new to the cannabis space, you should consider tapping on a business with experience in designing the Standard Operating Procedures for running an effective cultivation.

To submit the BOP application, the applicant must include the following items:

1. Security Plan: A detailed security plan outlining the measures that will be taken to ensure the safety of persons and property on the cultivation site. The security plan must be prepared by a qualified professional.
2. Floor Plan: A scaled floor plan for each level of each building that makes up the cultivation site, including the entrances, exits, walls and cultivation areas. The floor plan must be professionally prepared by a licensed civil engineer or architect.
3. Site Plan: A scaled site plan of the cultivation site, including all buildings, structures, driveways, parking lots, landscape areas and boundaries. The site plan must be professionally prepared by a licensed civil engineer or architect.
4. Lighting Plan: A detailed lighting plan showing existing and proposed exterior and interior lights that will provide adequate security lighting for the cultivation site.
5. Water Efficiency Plan: A detailed plan describing how the cultivation site will conform to all design guidelines, promote water conservation, and avoid or minimize any potential adverse environmental effects of operating a cultivation site.
6. Odor Control Plan: A detailed plan describing how the applicant will prevent all odors generated from the cultivation and storage of cannabis from escaping from the buildings on the cultivation site, such that the odor cannot be detected by a reasonable person of normal sensitivity outside the buildings.
7. Energy Efficiency Plan: Documentation that the applicant has contacted SMUD Strategic Accounts at strategicaccounts@smud.org or 1-877-622-7683 for help finding the best way to provide reliable and efficient energy solutions for their business. The applicant must provide the date they contacted SMUD and the name of the SMUD representative.
8. Business Operations Plan: A plan describing how the cannabis cultivation business will operate in accordance with this code, state law, and other applicable regulations. The business plan must include plans for handling cash and transporting cannabis and cannabis products to and from the cultivation site.
9. Community Relations Plan: A plan describing who is designated as being responsible for outreach and communication with the surrounding community, including the neighborhood and businesses, and how the designee can be contacted.
10. State Licenses: Copies of the state licenses relating to cannabis, including cultivation licenses, the applicant holds (when available).
11. Tax Compliance: A current copy of the applicant’s city business operations tax certificate, state sales tax seller’s permit, and the applicant’s most recent year’s financial statement and tax returns (for first time applicants, the business operations tax account will be set up in-house after the application has been submitted).
12. Insurance: The applicant’s certificate of commercial general liability insurance and endorsements and certificates of all other insurance related to the operation of the cultivation business.

You can apply for a Business Operating Permit online or download the Business Operating Permit Application  to submit it in person at the Revenue Division, 915 I Street Rm 1201, Sacramento, CA 95814. Before submitting an application online, applicants can read the Citizen Portal User Guide.

To apply for the BOP, Class A applicants must pay $9,700, Class B applicants must pay $20,210, and Class C applicants must pay $28,910. 

Step Four: Contact Sacramento County Agricultural Commission

Marijuana growers who will use pesticides (including herbicides, insecticides, rodenticides, fungicides, etc.) during the cultivation process  must contact the Sacramento County Agricultural Commission prior to their use. This is required to remain in compliance with requirements of the California Department of Pesticide Regulation. Prior to contacting the department, applicants can read about Legal Pest Management Practices for Cannabis Growers in California. Currently, they do not appear to have an application listed on the site, however, you will want to contact the department for more details.

Step Five: Obtain Background Checks

Finally, all applicants (including all management and staff) are required to go through a background check and get a Live Scan fingerprint in person at the Revenue Division. LiveScan fingerprinting is part of the background check requirements will be done strictly by appointment only. Fingerprinting is not required at the time of submission of your BOP, but is part of the review and approval process.  To schedule an appointment, please call the Permits staff at 916-808-5852. The LiveScan costs $88/person and is due at the time of your appointment.