General Provisions

Sacramento City Code tit. 5, ch. 5.150, art. I

in effect

Sacramento City Code § 5.150.010 Purpose and intent.

5.150.010 Purpose and intent. 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)

Sacramento City Code § 5.150.020 Definitions.

5.150.020 Definitions. 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. "Lobby" means a space that is accessible to the public inside the entrance of a building. "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; Ord. 2017-0031 § 1; Ord. 2017-0030 § 1)

Sacramento City Code § 5.150.030 All state and local licenses required.

5.150.030 All state and local licenses required. 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)

Sacramento City Code § 5.150.040 Cannabis transfer between permitted businesses only.

5.150.040 Cannabis transfer between permitted businesses only. A cannabis business shall not transfer cannabis or cannabis products to or from another cannabis business, unless both businesses are in possession of all required state and local licenses and permits. (Ord. 2017-0046 § 1)

Sacramento City Code § 5.150.050 Permits not transferable.

5.150.050 Permits not transferable. 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)

Sacramento City Code § 5.150.055 Transfer of an ownership interest in a storefront cannabis dispensary prohibited.

5.150.055 Transfer of an ownership interest in a storefront cannabis dispensary prohibited. A. No person shall transfer, sell, assign, or bequeath any ownership interest in any storefront cannabis dispensary permittee to another person. B. Any transfer, sale, assignment, or bequest of any ownership interest is unlawful and void. C. This section remains in effect until May 11, 2022. (Ord. 2021-0028 § 1; Ord. 2020-0040 § 1; Ord. 2019-0041 § 2)

Sacramento City Code § 5.150.060 Diversion.

5.150.060 Diversion. No person shall give, sell, distribute, or otherwise transfer any cannabis from a permitted cannabis business to any person in any manner that violates local or state law. (Ord. 2017-0046 § 1)

Sacramento City Code § 5.150.070 Interested parties.

5.150.070 Interested parties. A. A cannabis business must provide the city with names and addresses of all of the following interested parties of the business: 1. Each person with an aggregate ownership interest of 20% or more, unless the interest is solely a security, lien, or encumbrance; and 2. All officers, members of the board of directors, limited liability company managers, and other persons with similar responsibilities. B. The permittee shall notify the city of any change in the information above within 30 days of the change. C. All interested parties, as described in subsection A, must submit to fingerprinting and a criminal background check by the city. D. Unless the city manager determines, in accordance with subsection G, that the person's involvement as an interested party would not compromise public safety, no person shall be an interested party, as described in subsection A, if he or she has been convicted of an offense that is substantially related to the qualifications, functions, or duties of a cannabis business. "Convicted" within the meaning of this section means a plea or verdict of guilty or a conviction following a plea of nolo contendere was entered, but does not include any plea, verdict, or conviction that is expunged pursuant to federal or state law. E. The offenses that are substantially related to the qualifications, functions, or duties of a cannabis business include: 1. A violent felony, as specified in California Penal Code section 667.5(c). 2. A serious felony, as specified in California Penal Code section 1192.7(c). 3. A felony involving fraud, deceit, or embezzlement. 4. A felony involving the hiring, employing, or using a minor in transporting, carrying, selling, giving away, preparing for sale, or peddling, any controlled substance to a minor; or selling, offering to sell, furnishing, offering to furnish, administering, or giving any controlled substance to a minor. 5. A felony for drug trafficking with enhancements pursuant to California Health and Safety Code sections 11370.4 or 11379.8. F. Except for convictions of offenses described in subsections E.4 and E.5, a prior conviction, where the sentence, including any term of probation, incarceration, or supervised release, is completed, for possession of, possession for sale, sale, manufacture, transportation, or cultivation of a controlled substance is not considered substantially related, and shall not be the sole ground for denial of a permit. Conviction for any controlled substance felony subsequent to the issuance of a permit shall be grounds for revocation of a permit or denial of the renewal of a permit. G. A person who has been convicted of an offense that is substantially related to the qualifications, functions, or duties of a cannabis business may be an interested party, if the city manager determines that the person's involvement as an interested party would not compromise public safety. In making the determination, the city manager may consider all available information, including information provided by the person. The city manager shall consider the following factors when determining whether the person's involvement would compromise public safety: 1. The nature of the crime or conviction. 2. The circumstances surrounding the crime or conviction. 3. The bearing, if any, the crime or conviction has on the person's fitness or ability to perform one or more of their duties and responsibilities as an interested party. 4. The time that has elapsed since the crime or conviction. 5. The person's rehabilitation and good conduct since the crime or conviction. (Ord. 2022-0006 § 2; Ord. 2017-0060 § 2; Ord. 2017-0058 § 1; Ord. 2017-0046 § 1)

Sacramento City Code § 5.150.080 Emergency contact manager.

5.150.080 Emergency contact manager. A cannabis business permittee shall provide the city manager with the current name and primary and secondary telephone numbers of at least one 24-hour on-call manager to address and resolve complaints and to respond to operating problems or concerns associated with the cannabis business. (Ord. 2017-0046 § 1)

Sacramento City Code § 5.150.090 Community relations manager.

5.150.090 Community relations manager. A cannabis business permittee shall provide the city manager with the current name and primary and secondary telephone numbers of at least one manager to communicate with the surrounding neighborhoods and businesses. The cannabis business shall make good faith efforts to encourage neighborhood residents to call this person to solve problems, if any, before any calls or complaints are made to the city. (Ord. 2017-0046 § 1)

Sacramento City Code § 5.150.095 Identification badges.

5.150.095 Identification badges. Managers and staff of the permitted cannabis business must wear an identification badge that meets the requirements of section 5043 of title 16 of the California Code of Regulations, while on the site or during delivery or transportation. (Ord. 2020-0004 § 3)

Sacramento City Code § 5.150.100 Building design.

5.150.100 Building design. A cannabis business permittee must maintain the design of the buildings on the site in accordance with the plans (e.g., floor plans and site plans) that are approved through the application process, unless authorized by the city manager. (Ord. 2020-0004 § 4; Ord. 2017-0046 § 1)

Sacramento City Code § 5.150.110 Security plan.

5.150.110 Security plan. A cannabis business permittee shall maintain security on the site in accordance with the security plan that is approved by the city manager. No permitee shall modify the security on the site contrary to the city manager approved plans, without the approval of the city manager. (Ord. 2017-0046 § 1)

Sacramento City Code § 5.150.120 Odor control.

5.150.120 Odor control. A cannabis business permittee shall prevent all odors generated from the cultivation and storage of cannabis from escaping from the buildings on the site, such that the odor cannot be detected by a reasonable person of normal sensitivity outside the buildings. (Ord. 2017-0046 § 1)

Sacramento City Code § 5.150.130 Site management.

5.150.130 Site management. Notwithstanding any other provision of this code, a cannabis business permittee shall— A. Prevent and eliminate nuisances on its site, including the unlawful consumption of cannabis or cannabis products; B. Maintain the exterior of the site, including any parking lots under the control of the permittee, free of litter, debris, and trash; C. Properly store and dispose of all waste generated on the site, including chemical and organic waste, in accordance with all applicable laws and regulations; D. Make cannabis and cannabis products unusable and unrecognizable before discarding them; and E. Remove all graffiti from the site and parking lots under the control of the permittee within 72 hours of its application. (Ord. 2024-0044 § 2; Ord. 2020-0004 § 5; Ord. 2017-0046 § 1)

Sacramento City Code § 5.150.140 Reporting of criminal activity.

5.150.140 Reporting of criminal activity. A cannabis business permittee shall immediately report to the city police department and the city manager all criminal activity occurring on the cannabis business site. (Ord. 2020-0004 § 6; Ord. 2017-0046 § 1)

Sacramento City Code § 5.150.145 Consumption of cannabis in violation of the code.

5.150.145 Consumption of cannabis in violation of the code. A. No cannabis business, its managers, or persons with an ownership interest, shall allow any person to smoke, ingest, or otherwise consume cannabis or cannabis products on its site, except as described in this chapter. B. No cannabis business, its managers, or persons with an ownership interest, shall permit, aid, abet, or conceal the smoking, ingesting, or other consumption of cannabis or cannabis products on its site in violation of this code. (Ord. 2024-0044 § 3)

Sacramento City Code § 5.150.150 Payment of taxes.

5.150.150 Payment of taxes. In addition to any fees established and imposed pursuant to this chapter, all cannabis businesses are required to pay all applicable taxes, including the business operations tax pursuant to title 3 and sales tax pursuant to state law. (Ord. 2017-0046 § 1)5.150.150

Sacramento City Code § 5.150.160 Maintenance of business records.

5.150.160 Maintenance of business records. A. A cannabis business must maintain the following business records for at least three years on the site and must produce them to the city within 24 hours of receipt of the city's request: 1. The name, address, and telephone numbers of the owner and landlord of the property. 2. The name, date of birth, address, and telephone number of each manager and staff of the cannabis business; the date each was hired; and the nature of each manager's and staff's participation in the cannabis business. 3. A written accounting of all income and expenditures of the cannabis business, including, but not limited to, cash and in-kind transactions. 4. A copy of the cannabis business' commercial general liability insurance policy and all other insurance policies related to the operation of the business. 5. A copy of the cannabis business' most recent year's financial statement and tax return. 6. An inventory record documenting the dates and amounts of cannabis received at the site, the daily amounts of cannabis on the site, and the daily amounts of cannabis sold, distributed, and transported from the site. 7. The name, address, and telephone numbers of the owners and officers of the cannabis business; and the nature of the ownership interest in, and control of, the cannabis business. 8. A log detailing the arming and disarming of its alarm system, including the dates and times the alarm is armed and disarmed, the individuals who armed and disarmed the alarm, and the reasons the alarm was armed or disarmed. B. A cannabis business shall report any loss, damage, or destruction of these records to the city manager within 24 hours of the loss, damage, or destruction. (Ord. 2022-0006 § 3; Ord. 2019-0041 § 3; Ord. 2017-0046 § 1)

Sacramento City Code § 5.150.170 Service of notices.

5.150.170 Service of notices. All notices required by this chapter are deemed issued and served upon the date they are either deposited in the United States mail, postage pre-paid, addressed to the applicant or cannabis business at the mailing address identified in its application, the last updated address on file with the city manager's office, or the mailing address on the appeal form; or the date upon which personal service of the notice is provided to the applicant or a manager identified on the application or appeal form. (Ord. 2017-0046 § 1)

Sacramento City Code § 5.150.180 Inspection authority.

5.150.180 Inspection authority. A. City officials may enter and inspect the site of a cannabis business at any reasonable time to ensure compliance and enforcement of the provisions of this chapter. B. City officials may inspect and demand copies of records maintained by the cannabis business, except for private medical records, which shall be made available to law enforcement agencies only pursuant to a properly executed search warrant, subpoena, or court order. C. Permittees shall provide the city with a read-only account to access their records on the track and trace program established by the state pursuant to California Business and Professions Code section 26067. D. No person shall refuse, impede, obstruct, or interfere with an inspection pursuant to this chapter. (Ord. 2022-0006 § 4; Ord. 2017-0046 § 1)

Sacramento City Code § 5.150.185 Cessation of cannabis business operations.

5.150.185 Cessation of cannabis business operations. No cannabis business may cease operations for more than 30 consecutive days without first obtaining the city manager's approval of the following: A. A written plan that: 1. Describes the process and timeline to restart operations; 2. Describes the process and timeline to dispose of all cannabis and cannabis products on the site in accordance with section 5.150.130.C; or 3. Includes state authorization in accordance with section 15024.1 of title 4 of the California Code of Regulations to have a permitted cannabis business purchase, transport, and store all cannabis and cannabis products on the site and a written timeline of the purchase and transport. B. A written payment plan for any unpaid business operation tax; and C. The name, mailing address, primary and secondary telephone numbers, and email address of at least one manager who is managing the cessation of the operations. (Ord. 2022-0006 § 5)

Sacramento City Code § 5.150.190 Violations.

5.150.190 Violations. A. In addition to any other remedy allowed by law, any person who violates a provision of this chapter is subject to criminal sanctions, civil actions, and administrative penalties pursuant to chapter 1.28. B. Violations of this chapter are declared to be public nuisances. C. Any person who violates a provision of this chapter is liable for civil penalties of not less than $250 or more than $25,000 for each day the violation continues. D. All remedies prescribed under this chapter shall be cumulative and the election of one or more remedies shall not bar the city from the pursuit of any other remedy for the purpose of enforcing the provisions hereof. (Ord. 2017-0046 § 1)5.150.190

Sacramento City Code § 5.150.200 Severability.

5.150.200 Severability. If any section, subsection, subdivision, paragraph, sentence, clause, or phrase in this chapter is for any reason held to be unconstitutional, invalid, or ineffective by any court of competent jurisdiction, that decision shall not affect the validity or effectiveness of the remaining portions of this chapter. The city council declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase thereof irrespective of the fact that any one or more subsections, subdivisions, paragraphs, sentences, clauses, or phrases be declared unconstitutional, invalid, or ineffective. (Ord. 2017-0046 § 1)

Source: City of Sacramento, Sacramento City Code (American Legal Publishing, codelibrary.amlegal.com)URL: https://codelibrary.amlegal.com/codes/sacramentoca/latest/sacramento_ca/0-0-0-15406Fetched: 10/24/2026