Sacramento Municipal Code Art. VI Cannabis Manufacturing

Prior ordinance history: Ord. 2017-0030.

A. No person shall operate a cannabis manufacturing business without a valid cannabis manufacturing permit issued pursuant to this article or inconsistently with the limitations of the permit issued, as described in subsection B below.

B. The types of cannabis manufacturing permits issued pursuant to this article include the following:

1. Type 1, for a business involving all aspects of a cannabis manufacturing business, including the extraction of substances from a cannabis plant and the activities allowed with a Type N and Type P permit as described below.

2. Type N, for a business involving the production and preparation of cannabis products (such as infusing cannabis extracts or concentrates into edibles and topicals) and the activities allowed with a Type P permit as described below. A business holding a Type N permit cannot engage in the extraction of substances from a cannabis plant.

3. Type P, for a business involving only the packaging and labeling of cannabis or cannabis products. A business holding a Type P permit cannot engage in the extraction of substances from a cannabis plant, or the production and preparation of cannabis products. (Ord. 2017-0057 § 1; Ord. 2017-0046 § 1)

The cannabis manufacturing permit program fee is established and imposed. The city council shall establish by resolution the amount of the fee, and any related penalties. The fee and penalties may be established at various amounts based upon the type of permit and the gross receipts of the business. (Ord. 2017-0057 § 2; Ord. 2017-0046 § 1)

A cannabis manufacturing business may share its site with other cannabis manufacturing businesses, subject to the applicable provisions of state law and this chapter. (Ord. 2020-0004 § 25; Ord. 2017-0046 § 1)

A. A cannabis manufacturing permittee shall only manufacture cannabis in a fully enclosed building.

B. A cannabis manufacturing permittee shall not allow cannabis or cannabis products on the manufacturing site to be visible from the public right-of-way, the unsecured areas surrounding the buildings on the site, or the site's main entrance and lobby. (Ord. 2017-0046 § 1)

A cannabis manufacturing site shall comply with the following requirements:

A. Entrances. All entrances into the buildings on the manufacturing site shall be locked at all times with entry controlled by the cannabis manufacturing permitee's managers and staff.

B. Main entrance and lobby. The manufacturing site must have a building with a main entrance that is clearly visible from the public street or sidewalk. The main entrance must be maintained clear of barriers, landscaping, and other obstructions. Inside of the main entrance, there must be a lobby that is used only to receive persons into the site and to verify whether they are allowed in the manufacturing areas. The lobby must be secure and restrict access to any other area of the facility.

C. Manufacturing area. All manufacturing areas in any building on the manufacturing site shall be separated from the main entrance and lobby, and shall be secured by a lock accessible only to managers and staff of the cannabis manufacturing permittee.

D. Transport area. Each building with a manufacturing area shall have an area designed for the secure transfer of cannabis from a vehicle to the manufacturing area.

E. Storage area. Each building with a manufacturing area must have adequate storage space for all cannabis and all cannabis products that have been manufactured or is waiting to be manufactured. The storage areas must be separated from the main entrance and lobby and must be secured by a lock accessible only to managers and staff of the cannabis manufacturing permittee. (Ord. 2022-0006 § 25; Ord. 2017-0046 § 1)

Each manufacturing site must comply with the following security provisions at all times:

A. Security surveillance cameras. Security surveillance cameras and a video recording system must be installed to monitor all doors into the buildings on the site, the parking lot, storage and loading areas, areas not clearly visible from the public streets, and all exterior sides of the property adjacent to the public rights of way to discourage nuisance or illegal activities. The system must also be of adequate quality, color rendition, and resolution to allow the identification of any individual present on the site. The system must be capable of exporting the recorded video in standard MPEG formats to another common medium, such as a DVD or USB drive.

B. Security video recording and retention. The security surveillance cameras must record at all times (24 hours a day, seven days a week) and the recording must be maintained for at least 90 days. The video recordings must be made available to the city upon request.

C. Alarm system. Professionally and centrally-monitored fire, robbery, and burglar alarm systems must be installed and maintained in good working condition. The alarm system must be certified and monitored by a properly licensed private security company that is required to respond to every alarm within 20 minutes. The system must also include a hold-up alarm that is accessible near the transport area, manager's office, lobby, and storage areas.

D. Back-up Security System. The security system must be equipped with at least 24 hours of continued operation in case of power failure and equipped with a cellular back-up in case of phone disruption. (Ord. 2022-0006 § 26; Ord. 2020-0004 § 26; Ord. 2017-0046 § 1)5.150.850

The cannabis manufacturing permittee shall display its current valid cannabis manufacturing permit issued in accordance with this article inside the lobby or waiting area of the main entrance to the manufacturing site. The permit shall be displayed at all times in a conspicuous place so that it may be readily seen by all persons entering the manufacturing site. (Ord. 2017-0046 § 1)

A. A cannabis manufacturing permittee shall post in the lobby of the manufacturing site signs that state the following:

• 1. "This site is not open to the public."
• 2. "Retail sales of any goods and services is prohibited."
• 3. "Juveniles are prohibited from entering this site."
• 4. "Smoking, ingesting, or consuming cannabis on or within 20 feet of this site is prohibited."

B. Each sign described in subsection A must be at least 8 inches by 10 inches in size and must be displayed at all times in a conspicuous place so that it may be readily seen by all persons entering the manufacturing site. (Ord. 2017-0046 § 1)

A. No cannabis manufacturing permittee shall open their manufacturing site to the public.

B. No cannabis manufacturing permittee shall allow anyone on the manufacturing site, except for managers, staff, and other persons with a bona fide business or regulatory purpose for being there, such as contractors, inspectors, and cannabis transporters.

C. A manager must be on the manufacturing site at all times that any other person, except for security guards, is on the site.

D. Any person other than managers or staff who are on the manufacturing site must sign in, wear a visitor badge, and be escorted on the site by a manager at all times. (Ord. 2020-0004 § 27; Ord. 2017-0046 § 1)

A. No juvenile shall be on the manufacturing site or operate a cannabis manufacturing business in any capacity, including, but not limited to, as a manager, staff, employee, contractor, or volunteer.

B. No cannabis manufacturing permittee shall allow any violation of subsection A. (Ord. 2017-0046 § 1)

No person shall conduct any retail sales of any good or services on or from a permitted cannabis manufacturing site. (Ord. 2017-0046 § 1)

No person shall smoke, ingest, or otherwise consume cannabis in any form on, or within 20 feet of, the manufacturing site. (Ord. 2017-0046 § 1)

No person shall possess, consume, or store any alcoholic beverage on the manufacturing site. (Ord. 2017-0046 § 1)