Available Storefront Cannabis Dispensary Permits
Lottery Procedures
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CITY OF SACRAMENTO
AVAILABLE STOREFRONT CANNABIS DISPENSARY PERMITS
LOTTERY PROCEDURES
The following are the lottery procedures established by the City Council pursuant to Sacramento Code section 5.150.350.
A. City Authority.
When may the City hold a lottery? The City of Sacramento may conduct a lottery in accordance with these procedures when there is an available storefront cannabis dispensary permit. However, the City will hold a lottery for no more than 3 available permits per year.
B. Definitions.
The following definitions apply in this lottery procedures:
1. “Alternate” means a lottery entrant whose name was added to a list as described in section C.5.
2. “Cannabis dispensary, storefront” has the same meaning as in City Code section
5.150.020.
3. “Classification 1” has the same meaning as described in City Council resolution 2018-0323, as amended or modified.
4. “Classification 2” has the same meaning as described in City Council resolution 2018-0323, as amended or modified.
5. “City” means the City of Sacramento, a municipal corporation of the State of California.
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Lottery Procedures
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6. “City Code” means the Sacramento City Code.
7. “City Manager” means the City Manager or the City Manager’s designee.
8. “CORE program” means the City’s Cannabis Opportunity Reinvestment and Equity program, adopted by City Council resolution 2018-0323, as amended or modified.
9. “Day” means a calendar day.
10. “Individual” means a sole, natural person.
11. “Lottery entrant” means an individual who meets the requirements of subsections C.1 and C.4 or D.1.b.
12. “Office” means the City’s Office of Cannabis Management.
13. “Ownership interest” has the same meaning as in City Code section 5.150.020.
14. “Permit” means a business operations permit issued pursuant to City Code chapter
5.150 by the City to operate a storefront cannabis dispensary (“dispensary”).
15. “Permit application process” means the City’s process to obtain a permit , which includes in part, obtaining a certificate of occupancy and conditional use permit, in accordance with the City Code.
C. Procedures.
1. Who May Apply? The lottery is open to all individuals who have been certified as a participant of classification 1 or 2 of the CORE Program.
2. Public Notice. When 3 permits become available, the Office will publish a notice .
The notice must include , at a minimum, the filing date and location for the applications, and the date and location of the lottery.
3. Lottery Applications. Lottery entrants must submit a complete lottery application to the City Manager by the due date indicated in the public notice described in subsection C.2. Lottery entrants may only submit one lottery application per lottery. Lottery entrants must certify in their lottery appl ication that for a period of 10 years from the issuance of the permit that:
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Available Storefront Cannabis Dispensary Permits
Lottery Procedures
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a. At least 51% of the ownership interest in the storefront cannabis dispensary authorized by this permit will be held by one or more CORE program participants in classifications 1 or 2, and
b. CORE owner(s) of the dispensary will receive at least 51% of the dispensary’s profits.
The certification of ownership and profits will be a condition on the permit as described in subsection C.8 below.
4. Lottery Participation. Except as provided in section D below, to participate in the lottery, lottery entrants must:
a. Be physically present for the entire duration of the lottery; b. Provide valid photo identification (e.g., passport , California driver’s license or identification card, or military identification) and proof of current mailing address, if not on the photo identification; and
c. Properly complete and timely file a lottery application.
5. Lottery Drawing Process.
a. Lottery Entrant Number. Each lottery entrant will be assigned a number upon entering the lottery drawing room . That number will correspond to a numbered lottery ball that will be placed into a lottery drum or similar device.
b. Lottery Ball Pick Cycle and Winner Announcement. Once all of the lottery entrants have been assigned a number and their corresponding lottery balls have been placed in the lottery drum, the drum will be turned over at least 10 times and one lottery ball will be picked for each of the available permits.
The number and corresponding lottery entrant ’s name will be announced after each lottery ball is picked. The lottery drum will be turned over as described here before each lottery ball is picked.
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Available Storefront Cannabis Dispensary Permits
Lottery Procedures
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c. Alternate List Established. Once all available permits have been assigned, 5 more lottery balls will be picked to create a list of lottery entrants who will be alternates for those permits. (Further details on the Alternate Lottery List are described below in subsection C.7)
6. Time Limits to Apply for and Obtain a Permit.
a. Original Winner Time Limit. An original winner of the lottery must complete the City’s permit application process and obtain a permit within 3 years of the lottery . If an original winner is unable to or does not complete the permit application process, or elects not to proceed with the process, then that winner’s opportunity to apply for a permit will be forfeited. b. Alternate Winner Time Limit. The City will then notify the alternate at the top of the Alternate List for that lottery that they have been awarded the opportunity to apply for a permit. The alternate must complete the City’s storefront cannabis dispensary permit application process within 3 years of the City’s notice that they have been awarded the opportunity to apply for a permit or their opportunity will be forfeited to the alternate that is next on the list.
c. Continuation of Alternate Process. The process in this section C.6 shall continue until all the permits that were available in that lottery have been issued.
7. Alternate Lottery List.
a. Time Limit. The Alternate Lottery List may not be modified and shall be effective only for the permit(s) that were available in the same lottery the alternates were chosen.
b. Alternate Contact Information Updated. It is the alternate’s responsibility to ensure their contact information is current with the Office.
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c. 30 Day Acceptance Limit. In the event the Office attempts to contact an alternate on the list for an opportunity to apply for a permit and is not able to get a response within 30 days, that alternate will be removed from the list and the next alternate will be contacted.
d. Completion of the List. In the event there are no alternates left on the list, a lottery will be held in compliance with these procedures to select a new lottery entrant and alternates for the available permit.
8. Conditions on Permits Obtained by Lottery Process. By participating in the lottery, lottery entrants understand and agree that in addition to all other applicable permit conditions, the City will place the following condition s on their permit for 10 years starting from its issuance:
a. At least 51% of the ownership of the permitted storefront cannabis dispensary must be held by one or more CORE program participants in classifications 1 or 2; and
b. At least 51% of the profits of the dispensary must be allocated to the CO RE owner(s).
D. Alternative Lottery Procedures for Social Distancing due to Emergency Orders
1. In the event orders by the state, county, or City preclude the ability to conduct the lottery in person, the following modifications to the procedures will apply:
c. Lottery Application. Subsection C.4.b is modified to add that lottery entrants must provide a legible photocopy of a valid photo identification (e.g., passport, California driver’s license or identification card, or military identification) and a current mailing address , if not on the photo identification, with their lottery application.
d. Lottery Participation. Section C.4 applies except that subsection C.4.a requiring a lottery entrant to be physically present is waived.
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Lottery Procedures
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e. Lottery Drawing Process. Section C.5 is replaced in its entirety with the following:
1. Virtual Lottery and Invitation. The lottery will be held virtually . An invitation to attend the lottery virtually will be sent to all lottery entrants in the same manner that the lottery entrant filed their lottery applications. For example, if the lottery entrant emailed their completed lottery application, the City will email the invitation. No applications by mail will be accepted.
2. Lottery Recorded. The lottery shall be recorded. The recording shall be uploaded to the City’s website after the lottery is concluded.
3. Lottery Entrant Number. Upon the City Manager’s receipt of a properly completed and timely submitted lottery application, e ach lottery entrant will be assigned a number ed lottery ball. This number will be assigned in the order in which the application was received. The list of lottery entrants and their corresponding numbers shall be posted on the City’s website within 10 business days and announced at the drawing.
4. Lottery Ba ll Pick Cycle and Winner Announcement . The numbered lottery balls will be placed into a lottery drum or similar device. The drum will be turned over at least 10 times and one lottery ball will be picked for each of the available permit s. The number and corresponding name will be announced after each lottery ball is picked.
The lottery drum will be turned over as described here before each lottery ball is picked.
5. Alternate List Established. Once all of the permits have been assigned, 5 more lottery balls will be picked and announced to create a list of
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lottery entrants who will be alternates to apply for a permit if the original winner do es not complete the permit process as described in section C.6.