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Major Planning Projects

Title 17 Cannabis Amendments & Consumption Lounges Project

The Community Development Department is preparing proposed amendments to Title 17 (Planning & Development Code) of the City Code for all cannabis business types (i.e., storefront dispensaries, delivery-only dispensaries, cultivation, manufacturing, distribution, testing). This website provides information about the project to help you both understand and participate in the preparation and adoption of code amendments.

January 17, 2025: This website has been updated to reflect: (a) the inclusion of zoning ordinance amendments for cannabis consumption lounges into the overall project; and (b) in response to community feedback, final recommendations for zoning ordinance amendments concerning all other cannabis business types.

Cannabis Consumption Lounges

On November 19, 2024, the City Council adopted an ordinance amending Title 5 of the City Code concerning business regulations for cannabis consumption lounges. The ordinance addresses business operating requirements for cannabis consumption lounges such as employee and patron safety standards, ventilation requirements, and impaired driving prevention plans. In order to allow cannabis consumption lounges in the city, additional amendments to Title 17 of the City Code are necessary.

In response to City Council direction, the Community Development Department has prepared amendments to Title 17 of the City Code for cannabis consumption lounges. The amendments provide a land use entitlement process and standards for where consumption lounges can locate (i.e., zoning districts, distance from sensitive uses). A summary of these recommendations is provided below.

Recommendations - Cannabis Consumption Lounges

  • Allow cannabis consumption lounges in all zoning districts where cannabis storefront dispensaries are allowed; and
  • Require Conditional Use Permit review and approval by the Planning and Design Commission; and
  • In addition to all existing codified public hearing and notice requirements, provide for City Councilmember call up of all approved Conditional Use Permits; and
  • Enact a mandatory 600-foot sensitive use buffer (i.e., community centers, K-12 schools, libraries, museums, neighborhood/community/regional parks, substance use rehabilitation centers, and youth-oriented facilities).

Policy Direction & Preliminary Recommendations - All Cannabis Uses (Excluding Consumption Lounges)

On May 31, 2022, the City Council provided staff seven points of policy direction on the topic of land use/zoning. Each point of policy direction and both staff’s analysis and preliminary recommendations are below.

1. Review current cannabis business zoning to determine if they continue to serve the purposes for which they were adopted.

Preliminary Recommendation: Amend the permitting process from a Conditional Use Permit to an Administrative Permit for all cannabis land uses. Read the staff analysis here.

Final Recommendation: In addition to the preliminary recommendation, require public notice of all cannabis administrative permits for (1) application submittal; and (2) cannabis administrative permit decisions.

2. Consider additional zones for storefront and delivery-only dispensaries and consider storefront dispensaries as an allowed use in Residential Mixed Use (RMX) and C-3 zones.

Preliminary Recommendation: Add RMX, C-1, and C-3 to the current zones that allow storefront dispensaries. No additional zones are recommended for delivery-only dispensaries.  Read the staff analysis here.

Final Recommendation: No changes to the preliminary recommendation.

3. Consider additional zones for non-volatile manufacturing (including infusion and packaging).

Preliminary Recommendation: No additional zones are recommended for non-volatile manufacturing. Read the staff analysis here.

Final Recommendation: No changes to the preliminary recommendation.

4. Consider limiting cannabis sensitive uses to schools, youth centers, drug and alcohol treatment centers, neighborhood and community parks, and faith-based institutions.

Preliminary Recommendation: Amend sensitive uses to include K-12 schools, neighborhood, community and regional parks, community centers, libraries, and substance abuse rehabilitation centers. Maintain the 600-foot buffer requirement from sensitive uses but remove the ability to locate within the 600-foot buffer with Planning and Design Commission approval. Read the staff analysis here.

Final Recommendation: Include museums and non-profit youth-oriented facilities with the preliminary recommended sensitive uses listed above.

5. Consider reviewing suitability of mixed light cannabis uses in industrial/manufacturing zones.

Preliminary Recommendation: No Title 17 amendments are recommended. This means that mixed light facilities may be allowed subject to Site Plan and Design Review approval. Read the staff analysis here.

Final Recommendation: No changes to the preliminary recommendation.

6. Consider a zoning and permit type for cannabis research and development (R&D) facilities.

Preliminary Recommendation: Amend the “Cannabis testing” definition to include cannabis research and development as an allowed use. Read the staff analysis here.

Final Recommendation: No changes to the preliminary recommendation.

7. Consider removing distribution from the current uses subject to a district-based square-footage cap.

Preliminary Recommendation: Remove cannabis distribution from the district based square footage cap. Read the staff analysis here.

Final Recommendation: No changes to the preliminary recommendation.

Background

In 2021, the City Council commissioned a study of its cannabis regulatory program and the cannabis industry in Sacramento to track the evolution of industry trends and practices, evaluate the City’s existing regulatory framework, and help guide future policy development in regulating cannabis. This study, titled Sacramento Comprehensive Cannabis Study (“Study”) was prepared by Economic Planning & Systems on March 8, 2022. The Study evaluates the City’s cannabis policies relating to land use, fiscal/taxation issues, and economic effects, and included analysis of other jurisdictions and published cannabis studies.

Following the completion of the Study, a series of workshops were held at the Law & Legislation Committee to gather input on three major topics – ownership, land use/zoning, and fiscal/economics. The workshops led to a bundle of recommendations to the City Council, which was presented on May 31, 2022. See Past Meetings section below for links to the City Council and Law & Legislation Committee meetings, agendas, and staff reports.

Why are we here?

During the May 31, 2022, City Council meeting, the Council considered the Comprehensive Cannabis Study and input gathered during the L&L workshops. Council directed staff to evaluate seven policy points or topics relating cannabis zoning regulations within Title 17 (Planning & Development Code) of the Sacramento City Code. The policy direction provided by Council is the starting point for analysis and evaluation of the Title 17 Cannabis Amendments project and is informed by the conclusions of the Study. The seven points of policy direction and staff’s preliminary recommendations are located in the Policy Direction & Preliminary Recommendations section above.

Upcoming Activities & Next Steps

The Community Engagement phase of the project has concluded and staff is preparing a draft ordinance, which includes the recommendations for cannabis consumption lounges discussed above. The public review process of the draft ordinance includes public meetings at the following:

  • Planning and Design Commission
  • Law and Legislation Committee
  • City Council

It is anticipated that the public review process will begin in February/March 2025. It is recommended to sign-up for the project’s email notification list provided below to receive project updates and notice of upcoming meetings.

Comprehensive Cannabis Study & Project Considerations

The analysis for Title 17 amendments is informed by the Study’s primary conclusions relating to cannabis land uses and zoning:

  • Cannabis businesses have not had a negative impact on other nearby retail or industrial uses. (Primary Conclusion #4, page 8)
  • Cannabis businesses have not created increases in crime beyond the levels generated by other businesses. (Primary Conclusion #6, page 9)
  • Cannabis businesses have not had a negative impact on nearby home values. (Primary Conclusion #5, page 9)
  • The cannabis industry does not appear to produce negative economic effects on commercial and residential districts. (Primary Conclusion #13, page 11)
  • Storefront dispensaries integrate well into a variety of commercial environments and are typically “good neighbors”. (Retail analysis page 76; Table 5. Overview of Cannabis Industry Function Groups (IFGs) page 24)
  • Potential for City to see reduction in cultivation uses due to higher land availability in the central and coastal regions of the state, and cheaper operating costs with jurisdictions that allow outdoor cultivation. (Primary Conclusion #12 findings, page 10)
  • Market will “shake-out” over time and it may not be necessary to limit cannabis cultivation and production uses (i.e., floor area restrictions). (Primary Conclusion #14 findings, page 11)

Past Meetings

September 19, 2024 Virtual Webinar #2 10:30am

September 12, 2024 Planning and Design Committee workshop

September 5, 2024 Virtual Webinar #1 6:00pm

August 25, 2022 Planning and Design Committee meeting

August 20, 2024 Law and Legislation workshop

July 25, 2024 General Cannabis Careholder meeting

May 21, 2024 Law and Legislation meeting (cannabis projects update)

May 31, 2022 City Council Meeting (Policy Recommendations)

May 10, 2022 Law and Legislation workshop (Policy Recommendations)

March 15, 2022 Law and Legislation workshop (Overview of the Study; Ownership issues)

April 19, 2022 Law and Legislation workshop (Fiscal/Economic/Taxation Issues)

April 5, 2022 Law and Legislation workshop (Land Use Issues)

Staff Contact Information

Questions or comments should be directed to:

Kirk Skierski, Senior Planner
KTSkierski@cityofsacramento.org
916-808-7933

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