Sacramento Municipal Code Art. III Storefront Cannabis Dispensaries

* Prior ordinance history: Ord. 2017-0046.

A. No person shall operate a storefront cannabis dispensary without a valid storefront cannabis dispensary permit issued pursuant to this chapter, or operate a storefront cannabis dispensary inconsistently with the permit conditions.

B. Storefront cannabis dispensary permits issued pursuant to this chapter may include any or all of the following conditions:

1. Type M condition. A business with a valid storefront cannabis dispensary permit with a type M condition issued pursuant to this chapter, and only such business, is authorized to sell medical cannabis, subject to the provisions of this chapter.

2. Type A condition. A business with a valid storefront cannabis dispensary permit with a type A condition issued pursuant to this chapter, and only such business, is authorized to sell adult-use cannabis, subject to the provisions of this chapter.

3. Type D condition. A business with a storefront cannabis dispensary permit with a type D condition issued pursuant to this chapter, and only such business, is authorized to deliver cannabis, whether medical or adult-use, subject to the provisions of this chapter.

C. A medical cannabis dispensary permit issued pursuant to this code and valid on the effective date of this ordinance, is considered a storefront cannabis dispensary permit with only a type M condition.

D. A storefront cannabis dispensary permittee may seek to add conditions to their permit at any time by submitting an application for renewal of the permit in accordance with article II of this chapter. (Ord. 2017-0060 § 3)

A. The following fees are established and imposed pursuant to the provisions of this article:

• 1. Storefront cannabis dispensary permit program fee;
• 2. Type M condition fee;
• 3. Type A condition fee; and
• 4. Type D condition fee.

B. When applying for a renewal of a storefront cannabis dispensary permit pursuant to this chapter, the applicant shall submit the storefront cannabis dispensary permit program fee, plus a condition fee for each condition that the applicant is seeking to obtain.

C. The city council shall establish by resolution the amounts of the fees specified in subsection A, and any related penalties. (Ord. 2017-0060 § 3)

A. Notwithstanding any contrary provision in this chapter, the city shall not issue a new storefront cannabis dispensary permit if there are 43 or more valid storefront cannabis dispensary permits at the time an application is submitted.

B. Whenever the number of valid storefront cannabis dispensary permits falls below 43, the city manager may issue a storefront cannabis dispensary permit to an applicant through a process that is established by city council resolution. The process must, at a minimum, be consistent with the code and may:

1. Evaluate whether applicants will be able to successfully submit a complete application for a storefront cannabis dispensary permit;

2. Evaluate whether applicants will be able to successfully operate a storefront cannabis dispensary; and

3. Utilize criteria reasonably necessary to protect the public health, safety, and welfare. (Ord. 2025-0008 § 1; Ord. 2020-0035 § 1; Ord. 2017-0060 § 3)

No person who has an ownership interest in a storefront cannabis dispensary shall obtain an ownership interest in any other storefront cannabis dispensary. (Ord. 2019-0041 § 4)

A. No person shall operate a storefront cannabis dispensary at any place other than the specific location for which the dispensary permit is granted.

B. A storefront cannabis dispensary permittee may modify the location for which its dispensary permit is granted by filing a relocation application with the city manager's office.

C. Notwithstanding any provision of this chapter to the contrary, a storefront cannabis dispensary permittee may sell cannabis at an event that is approved by city council resolution and licensed by the state in accordance with California Business and Professions Code section 26200(e).

D. Article II of this chapter, relating to cannabis business permit applications, applies to relocation applications. (Ord. 2019-0002 § 1; Ord. 2017-0060 § 3)

A storefront cannabis dispensary permittee shall not allow cannabis, cannabis products, or cannabis accessories on the dispensary 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. 2017-0060 § 3)

A. No person under 21 years of age shall operate a storefront cannabis dispensary in any capacity, including but not limited to, as a manager, staff, employee, contractor, or volunteer.

B. No person under 21 years of age shall be in the storefront cannabis dispensary building unless they are a qualified patient or a primary caregiver.

C. No person under 18 years of age shall be in the storefront cannabis dispensary building unless they are a qualified patient or a primary caregiver, and they are accompanied by their parent or legal guardian.

D. No storefront cannabis dispensary permittee shall allow any violation of subsection A, B, or C. (Ord. 2022-0006 § 14; Ord. 2017-0060 § 3)

The maximum hours of operation for a storefront cannabis dispensary shall be daily from 7:00 a.m. to 9:00 p.m. unless the city manager imposes more restrictive hours as a condition of the permit. (Ord. 2017-0060 § 3)

A. All entrances into a storefront cannabis dispensary's building shall be locked from the exterior at all times with entry controlled by dispensary personnel.

B. A manager must be on the storefront cannabis dispensary site at all times that any other person, except for security guards, is on the site.

C. Any person other than managers or staff shall be escorted by a manager at all times while in the storefront cannabis dispensary building. (Ord. 2020-0004 § 13; Ord. 2017-0060 § 3)

A. A cannabis business that is expressly authorized to sell medical cannabis pursuant to this chapter shall sell medical cannabis only to:

1. Qualified patients with a currently valid physician's recommendation in compliance with 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.), and valid government-issued identification such as a Department of Motor Vehicles driver's license or State Identification Card; or

2. Primary caregivers with a verified primary caregiver designation by their qualified patients, a copy of their qualified patient's valid physician's recommendation in compliance with 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.), and valid official identification such as a Department of Motor Vehicles driver's license or State Identification Card.

B. No cannabis business that is expressly authorized to sell medical cannabis pursuant to this chapter shall have a physician on the dispensary site to evaluate patients or provide a recommendation for medical cannabis. (Ord. 2017-0060 § 3)

A cannabis business that is expressly authorized to sell cannabis pursuant to this chapter, whether medical cannabis or adult-use cannabis, may also display and sell cannabis accessories. (Ord. 2022-0006 § 15; Ord. 2017-0060 § 3)

A cannabis business that is expressly authorized to sell adult-use cannabis pursuant to this chapter shall only sell adult-use cannabis to persons who are 21 years of age or older, and who are in possession of a valid government-issued identification card. (Ord. 2017-0060 § 3)

No storefront cannabis dispensary shall allow any person to smoke, ingest, or otherwise consume cannabis or cannabis products in any form on, or within 20 feet of, the site, except as described in this chapter. (Ord. 2024-0044 § 4; Ord. 2017-0060 § 3)

No storefront cannabis dispensary shall grow or cultivate cannabis, except for immature nursery stock cannabis plants, on the dispensary site. (Ord. 2017-0060 § 3)

A. Floor Plan. A storefront cannabis dispensary must have a main entrance that is clear of barriers, landscaping, and similar obstructions so that it is clearly visible from public streets or sidewalks. A dispensary must also have a lobby that is used only to receive persons to verify that they are allowed on the site. The lobby must be secure and restrict access to any other area of the dispensary. A dispensary must also have a separate and secure area designated for selling cannabis, cannabis products, and cannabis accessories to its customers.

B. Storage. A storefront cannabis dispensary must have adequate locked storage on the site, identified and approved as a part of the security plan, for after-hours storage of all cannabis and all cannabis products. All cannabis and all cannabis products must be stored in secured rooms that are completely enclosed or in a safe that is bolted to the floor. (Ord. 2022-0006 § 16; Ord. 2017-0060 § 3)5.150.460

Storefront cannabis dispensaries must comply with the following security provisions at all times:

A. Licensed Security Personnel. A dispensary must have adequate state-licensed security personnel to patrol the site and the area within 100 feet of the site to preserve the safety of persons and to protect the site from theft. All security personnel must possess a valid California Department of Consumer Affairs security guard license while on duty on the site.

B. Security Cameras. The dispensary must have security surveillance cameras and a video recording system that monitors the interior, main entrance, storage, areas of ingress and egress, parking lot, and exterior sides of the site including the areas not clearly visible from the public streets to discourage illegal or nuisance activities. The system must be of adequate quality, color rendition, and resolution to allow the identification of any individual present on the site. The system must also be capable of exporting the recording in standard MPEG formats to another common medium, such as a DVD or USB drive.

C. Security Video Retention. The security surveillance cameras must record at all times (24 hours a day, seven days a week) and the recording must be maintained by the dispensary for a period of not less than 90 days. The recording must be made available to the city upon request.

D. Alarm System. A dispensary must have professionally and centrally-monitored fire, robbery, and burglar alarm systems that are maintained in good working condition. The alarm system must be monitored by a 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.

E. 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. 2024-0044 § 5; Ord. 2022-0006 § 17; Ord. 2020-0004 § 14; Ord. 2017-0060 § 3)

A. Each storefront cannabis dispensary that is not authorized to operate a cannabis consumption lounge must have a sign stating, "Smoking, ingesting, or consuming cannabis or cannabis products on this site or in a public place is prohibited."

B. A storefront cannabis dispensary that is only authorized to sell medical cannabis must have a sign stating, "Medical cannabis sales only. Only qualified patients and primary caregivers may enter. Any qualified patient or primary caregiver under 18 years of age must be in the presence of their parent or legal guardian."

C. A storefront cannabis dispensary that is only authorized to sell adult-use cannabis must have a sign stating, "Adult-use cannabis sales only. Persons under 21 years of age are prohibited from entering."

D. A storefront cannabis dispensary that is authorized to sell both medical and adult-use cannabis must have a sign stating, "Medical and adult-use cannabis for sale. Persons under 21 years of age are prohibited from entering this property unless they are a qualified patient or a primary caregiver. Any qualified patient or primary caregiver under 18 years of age must be in the presence of their parent or legal guardian." If separate rooms are provided for medical cannabis and adult-use cannabis, the signs described in subsections B and C may be posted next to each room as appropriate.

E. Signs required by this section must comply with the following:

1. The signs must be clearly legible and not less than 8 inches by 10 inches in size;

2. The signs must be posted inside the dispensary where they will be visible to members and customers in the normal course of a transaction;

3. The signs must not obstruct the entrance or windows of the dispensary. (Ord. 2024-0044 § 6; Ord. 2017-0060 § 3)

The storefront cannabis dispensary permittee shall display at all times during business hours, its current valid store-front dispensary permit issued pursuant to this chapter. The permit shall be displayed in a conspicuous place so that it may be readily seen by all persons entering the dispensary. (Ord. 2022-0006 § 18; Ord. 2017-0060 § 3)

No storefront cannabis dispensary or manager shall cause or allow the sale, distribution, or consumption of alcoholic beverages, tobacco, or tobacco products on the site; hold or maintain a license from the State Division of Alcoholic Beverage Control for the sale of alcoholic beverages for the site; or operate a business on or adjacent to the site that sells alcoholic beverages, tobacco, or tobacco products. No person shall possess or store alcoholic beverages, tobacco, or tobacco products on the site. (Ord. 2024-0044 § 7; Ord. 2017-0060 § 3)

A cannabis business that is expressly authorized to deliver cannabis pursuant to this chapter may deliver cannabis and cannabis products subject to the following provisions:

A. All cannabis and all cannabis products being delivered must be obtained from the site of the cannabis business that is authorized to deliver cannabis. No cannabis or cannabis products may be delivered from any other facility, such as a separate storage facility or a cannabis product manufacturing facility. Loading and unloading of cannabis products must only take place within the designated and approved secured loading area. All cannabis and all cannabis products must be kept in a secured container that is attached to the delivery vehicle.

B. No person delivering cannabis or cannabis products shall possess more than $5,000 worth of cannabis and cannabis products at any time, including no more than $3,000 worth of cannabis and cannabis products that are purchased by customers.

C. No person shall deliver cannabis or cannabis products in a vehicle that has any markings identifying it as a vehicle in which cannabis may be contained.

D. The cannabis business must use and maintain computer software to record the following information relating to each delivery:

1. A delivery request that includes the date of the request, the full name of the person requesting the delivery, a specific description of the items requested, whether each item is a medical cannabis or adult-use cannabis product, and the address to which the items are to be delivered;

2. The name of the person who delivered the items; and

3. The date and time of the delivery.

E. A person delivering cannabis or cannabis products on behalf of a dispensary shall carry the following items:

• 1. A copy of the dispensary's current dispensary permit;
• 2. The person's government-issued identification; and
• 3. A copy of the delivery request as described in subsection D.1.

F. Upon demand of a peace officer or city employee authorized to enforce this chapter, a person delivering cannabis or cannabis products pursuant to this section shall present the items listed in subsection E for examination.

G. Notwithstanding any provision of this chapter to the contrary, a cannabis delivery- only dispensary permittee may sell cannabis or cannabis products at an event that is approved by city council resolution and licensed by the state in accordance with California Business and Professions Code section 26200(e).

H. A cannabis business must maintain the information described in subsection D for at least three years on the site and must produce the information to the city upon request. (Ord. 2022-0006 § 19; Ord. 2020-0004 § 17; Ord. 2019-0002 § 2; Ord. 2017-0002 § 2; Ord. 2017-0060 § 3)